META FINANCIAL GROUP INC, 10-K filed on 11/29/2017
Annual Report
v3.8.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2017
Nov. 24, 2017
Mar. 31, 2017
Document and Entity Information [Abstract]      
Entity Registrant Name META FINANCIAL GROUP INC    
Entity Central Index Key 0000907471    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 762.6
Entity Common Stock, Shares Outstanding   9,666,462  
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2017    
v3.8.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
ASSETS    
Cash and cash equivalents $ 1,267,586 $ 773,830
Investment securities available-for-sale 1,106,977 910,309
Mortgage-backed securities available-for-sale 586,454 558,940
Investment securities held to maturity 449,840 486,095
Mortgage-backed securities held to maturity 113,689 133,758
Loans receivable 1,325,371 925,105
Allowance for loan losses (7,534) (5,635)
Federal Home Loan Bank stock, at cost 61,123 47,512
Accrued interest receivable 19,380 17,199
Premises, furniture, and equipment, net 19,320 18,626
Bank-owned life insurance 84,702 57,486
Foreclosed real estate and repossessed assets 292 76
Goodwill 98,723 36,928
Intangible assets 52,178 28,921
Prepaid assets 28,392 9,443
Deferred taxes 9,101 0
Other assets 12,738 7,826
Total assets 5,228,332 4,006,419
LIABILITIES    
Non-interest-bearing checking 2,454,057 2,167,522
Interest-bearing checking 67,294 38,077
Savings deposits 53,505 50,742
Money market deposits 48,758 47,749
Time certificates of deposit 123,637 125,992
Wholesale deposits 476,173 0
Total deposits 3,223,424 2,430,082
Short-term debt 1,404,534 1,095,118
Long-term debt 85,533 92,460
Accrued interest payable 2,280 875
Deferred taxes 0 4,600
Accrued expenses and other liabilities 78,065 48,309
Total liabilities 4,793,836 3,671,444
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2017 and 2016, respectively 0 0
Common stock 96 85
Additional paid-in capital 258,336 184,780
Retained earnings 167,164 127,190
Accumulated other comprehensive income 9,166 22,920
Treasury stock, at cost, 3,836 common shares at September 30, 2017 and none at September 30, 2016 (266) 0
Total stockholders’ equity 434,496 334,975
Total liabilities and stockholders’ equity 5,228,332 4,006,419
Nonvoting Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.8.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares
Sep. 30, 2017
Sep. 30, 2016
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) 15,000,000 15,000,000
Common stock, shares issued (in shares) 9,626,431 8,523,641
Common stock, shares outstanding (in shares) 9,622,595 8,523,641
Treasury stock (in shares) 3,836 0
Nonvoting Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 3,000,000 3,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Interest and dividend income:      
Loans receivable, including fees $ 52,117 $ 36,187 $ 29,565
Mortgage-backed securities 16,571 15,771 13,979
Other investments 39,415 29,438 18,063
Total interest and dividend income 108,103 81,396 61,607
Interest expense:      
Deposits 6,051 614 726
FHLB advances and other borrowings 8,822 3,477 1,661
Total interest expense 14,873 4,091 2,387
Net interest income 93,230 77,305 59,220
Provision for loan losses 10,589 4,605 1,465
Net interest income after provision for loan losses 82,641 72,700 57,755
Non-interest income:      
Refund transfer product fees 38,956 23,347 63
Tax advance product fees 31,913 1,575 0
Card fees 94,707 70,533 54,542
Loan fees 3,882 3,374 2,348
Bank-owned life insurance income 2,216 1,656 2,030
Deposit fees 736 603 593
Loss on sale of securities available-for-sale, net (Includes ($493), ($326), and ($1,634) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) (493) (326) (1,634)
Loss (gain) on foreclosed real estate (6) 0 28
Other income 261 8 204
Total non-interest income 172,172 100,770 58,174
Non-interest expense:      
Compensation and benefits 88,728 61,675 46,493
Refund transfer product expense 11,885 8,648 3
Tax advance product expense 3,241 0 0
Card processing expense 24,130 22,263 16,508
Occupancy and equipment expense 16,465 13,999 11,399
Legal and consulting expense 8,384 4,824 4,978
Marketing 1,449 1,334 1,347
Data processing expense 2,117 1,972 1,537
Amortization expense 12,362 4,828 1,349
Intangible impairment 10,248 0 0
Other expense 20,654 15,105 12,892
Total non-interest expense 199,663 134,648 96,506
Income before income tax expense 55,150 38,822 19,423
Income tax expense (Includes ($185), ($118), and ($597) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) 10,233 5,602 1,368
Net Income $ 44,917 $ 33,220 $ 18,055
Earnings per common share (1):      
Basic (in dollars per share) [1] $ 4.86 $ 3.93 $ 2.68
Diluted (in dollars per share) [1] $ 4.83 3.91 $ 2.66
Accounting Standards Update 2015-06 [Member]      
Earnings per common share (1):      
Basic (in dollars per share)   3.93  
Diluted (in dollars per share)   3.91  
Accounting Standards Update 2015-06 [Member] | Scenario, Previously Reported [Member]      
Earnings per common share (1):      
Basic (in dollars per share)   3.95  
Diluted (in dollars per share)   $ 3.92  
[1] See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.
v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Non-interest income:      
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ (493) $ (326) $ (1,634)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) $ (185) $ (118) $ (597)
v3.8.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]      
Net income $ 44,917 $ 33,220 $ 18,055
Other comprehensive (loss) income:      
Change in net unrealized gain on securities (21,661) 31,965 7,723
Losses realized in net income 493 326 1,634
Total available for sale adjustment (21,168) 32,291 9,357
Deferred income tax effect (7,414) 11,826 3,493
Total other comprehensive (loss) income (13,754) 20,465 5,864
Total comprehensive income $ 31,163 $ 53,685 $ 23,919
v3.8.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]
Treasury Stock [Member]
Balance at the beginning of the period at Sep. 30, 2014 $ 174,802 $ 62 $ 95,079 $ 83,797 $ (3,409) $ (727)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock ($0.52 per share) (3,493)     (3,493)    
Issuance of common shares due to issuance of stock options and restricted stock 378   378      
Issuance of common shares due to acquisition 24,303 6 24,297      
Issuance of common shares from the sales of equity securities 51,168 14 50,737     417
Stock compensation 258   258      
Net change in unrealized gains (losses) on securities, net of income taxes 5,864       5,864  
Net income 18,055     18,055    
Balance at the end of the period at Sep. 30, 2015 271,335 82 170,749 98,359 2,455 (310)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock ($0.52 per share) (4,389)     (4,389)    
Issuance of common shares due to issuance of stock options and restricted stock 2,357 1 2,046     310
Issuance of common shares due to acquisition 0          
Issuance of common shares from the sales of equity securities 11,500 2 11,498      
Stock compensation 487   487      
Net change in unrealized gains (losses) on securities, net of income taxes 20,465       20,465  
Net income 33,220     33,220    
Balance at the end of the period at Sep. 30, 2016 334,975 85 184,780 127,190 22,920 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Adoption of Accounting Standards Update 2016-09 0   104 (104)    
Cash dividends declared on common stock ($0.52 per share) (4,839)     (4,839)    
Issuance of common shares due to issuance of stock options and restricted stock 650   650      
Issuance of common shares due to restricted stock 4 4        
Issuance of common shares due to acquisition 37,296 7        
Issuance of common shares due to ESOP 1,174   1,174      
Issuance of common shares from the sales of equity securities 37,296   37,289      
Contingent consideration equity earnout due to acquisition 24,142   24,142      
Shares repurchased for tax withholdings on stock compensation (470)   (204)     (266)
Stock compensation 10,401   10,401      
Net change in unrealized gains (losses) on securities, net of income taxes (13,754)       (13,754)  
Net income 44,917     44,917    
Balance at the end of the period at Sep. 30, 2017 $ 434,496 $ 96 $ 258,336 $ 167,164 $ 9,166 $ (266)
v3.8.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Cash dividends declared on common stock (in dollars per share) $ 0.52 $ 0.52 $ 0.52
v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:      
Net income $ 44,917 $ 33,220 $ 18,055
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, amortization and accretion, net 45,048 35,617 28,882
Stock compensation 10,401 487 258
Provision for loan losses 10,589 4,605 1,465
Recovery for deferred taxes (6,286) (230) (3,896)
Loss on other assets 406 104 6
Loss (Gain) on foreclosed real estate 6 0 (28)
Loss on sale of securities available-for-sale, net 537 326 1,634
Gain on sale of securities held-to-maturity, net (44) 0 0
Net change in accrued interest receivable (2,181) (3,847) (2,130)
Impairment of intangibles 10,248 0 0
Fair value adjustment of foreclosed real estate 18 0 0
Originations of loans held for sale (685,934) 0 0
Proceeds from sales of loans held for sale 685,934 0 0
Change in bank-owned life insurance value (2,216) (1,656) (1,225)
Net change in other assets (23,408) (1,968) (672)
Net change in accrued interest payable 1,405 603 (46)
Excess contingent consideration paid (248) 0 0
Net change in accrued expenses and other liabilities 30,806 11,237 6,911
Net cash provided by operating activities 119,998 78,498 49,214
Cash flows from investing activities:      
Purchase of securities available-for-sale (848,613) (603,995) (810,624)
Proceeds from sales of securities available-for-sale 457,306 285,508 566,371
Proceeds from maturities and principal repayments of securities available-for-sale 126,420 116,333 124,558
Purchase of securities held to maturity (932) (298,869) (72,759)
Proceeds from sales of securities held-to-maturity 5,870 0 0
Proceeds from maturities and principal repayments of securities held to maturity 45,615 20,465 9,879
Purchase of bank-owned life insurance (25,000) (10,000) (10,000)
Proceeds from bank-owned life insurance death benefit 0 0 864
Loans purchased (141,403) 0 0
Proceeds from loans sold 4,720 89 5,462
Net change in loans receivable (274,840) (217,985) (146,111)
Proceeds from sales of foreclosed real estate 200 0 86
Cash paid for acquisitions (29,425) 0 (125,314)
Cash received upon acquisitions 0 0 9,768
Federal Home Loan Bank stock purchases (715,891) (860,902) (544,324)
Federal Home Loan Bank stock redemptions 702,280 837,800 541,160
Proceeds from the sale of premises and equipment 58 55 2,100
Purchase of premises and equipment (6,798) (6,979) (5,031)
Net cash used in investing activities (700,433) (738,480) (453,915)
Cash flows from financing activities:      
Net change in checking, savings, and money market deposits 319,524 737,727 334,375
Net change in time deposits (2,355) 34,821 (43,382)
Net change in wholesale deposits 476,173 0 0
Net change of FHLB and other borrowings 308,000 100,000 0
Net change in federal funds (5,000) 452,000 70,000
Net change in securities sold under agreements to repurchase (565) (969) (6,404)
Proceeds from long term debt 0 75,000 0
Payment of debt issuance costs 0 (1,767) 0
Payment of debt extinguishment costs (772) 0 0
Principal payments on capital lease obligations (80) (126) (116)
Cash dividends paid (4,839) (4,389) (3,493)
Purchase of shares by ESOP 1,174 0 0
Issuance of restricted stock 4 0 0
Proceeds from exercise of stock options and issuance of common stock 650 13,857 51,547
Shares repurchased for tax withholdings on stock compensation (470) 0 0
Contingent consideration - cash paid (17,253) 0 0
Net cash provided by financing activities 1,074,191 1,406,154 402,527
Net change in cash and cash equivalents 493,756 746,172 (2,174)
Cash and cash equivalents at beginning of year 773,830 27,658 29,832
Cash and cash equivalents at end of year 1,267,586 773,830 27,658
Interest 16,278 3,488 2,433
Income taxes 20,058 5,898 5,277
Franchise taxes 187 98 98
Other taxes 290 79 48
Loans transferred to foreclosed real estate 440 76 54
Issuance of common shares due to acquisition (37,296) 0 (24,303)
Contingent consideration - equity (24,142) 0 0
Capital leases 0 0 (2,259)
Securities transferred from available-for-sale to held to maturity 0 0 310
Purchase of available-for-sale securities accrued, not paid 0 0 (7,877)
Purchase of held-to-maturity securities accrued, not paid $ 0 $ 0 $ (3,000)
v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
 
The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in financial technology companies. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities.  The Trust is not included in the consolidated financial statements of the Company.  All significant intercompany balances and transactions have been eliminated.
 
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
 
The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services.  Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans.  The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis through its MPS and tax services divisions.  The Company operates in the banking industry, which accounts for the majority of its revenues and assets.  The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
 
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
 
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments.  These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
 
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
 
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions.  The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days.  The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank ("FRB"), based on a percentage of deposits.  The total of those reserve balances was $1.5 million at September 30, 2017, and there were no such reserve balances at September 30, 2016.  The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions.  At September 30, 2017, the Company had no interest-bearing deposits held at the FHLB and $1.23 billion in interest-bearing deposits held at the FRB.  At September 30, 2017, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.

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

The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.
 
The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
 
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2017, 2016 and 2015, there was no other-than-temporary impairment recorded.
 
LOANS RECEIVABLE
 
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans.
 
Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued.  Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status.
 
Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method.
 
    
As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.
 
The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

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

Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until six months of good payment history. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status, but are instead written off when the collection of principal and interest becomes doubtful.
 
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
 
The Company, from time to time, sells loan participations, generally without recourse.  Sold loans are not included in the consolidated financial statements.  The Bank generally retains the right to service the sold loans for a fee.  At September 30, 2017 and 2016, the Bank was servicing loans for others with aggregate unpaid principal balances of $21.8 million and $19.4 million, respectively.
 
ALLOWANCE FOR LOAN LOSSES
 
The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.  The allowance consists of specific, general and unallocated components.
 
The specific component relates to impaired loans.  Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Often this is associated with a delay or shortfall in payments of 90 days or more for retail bank loans categories.  Non-accrual loans and all TDRs are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.


The general reserve covers retail bank loans not considered impaired and is determined based upon both quantitative and qualitative analysis.  A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans.  The three main assumptions for the quantitative components for 2017 and 2016 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

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

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

•
The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off.  The LEP is only applied to the non-classified loan general reserve.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment.
 
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

The other loan portfolios primarily utilize a general reserve process that primarily uses historical factors related to the specific loan portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for premium finance loans, 180 days for tax and other specialty lending loans and 90 days for other loans.
 
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 
Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis.  Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses.  Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs.
 
INCOME TAXES
 
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination.  For tax positions not meeting the more likely than not test, no tax benefit is recorded.  The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
 
PREMISES, FURNITURE AND EQUIPMENT
 
Land is carried at cost.  Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization.  Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization.  We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

BANK-OWNED LIFE INSURANCE
 
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
 
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
 
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2017 and 2016, all shares in the ESOP were allocated.
 
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
 
The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements.

GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment. The Company performs its impairment evaluation as of September 30 of each fiscal year. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the consolidated financial statements. No goodwill impairment was recognized during the years ended September 30, 2017, 2016 or 2015.

INTANGIBLE ASSETS
 
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 
The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security.  Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction.  Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability.  The securities underlying the agreements remain in the asset accounts of the Company.
 
REVENUE RECOGNITION
 
Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment.  Income from service and other customer charges is recognized as earned.  Revenue within the Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs.
 
EARNINGS PER COMMON SHARE (“EPS”)
 
Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities.
 
COMPREHENSIVE INCOME (LOSS)
 
Comprehensive income (loss) consists of net income and other comprehensive income or loss.  Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
 
STOCK COMPENSATION
 
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. 

RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES

The Company reclassified insignificant electronic return originator ("ERO") and taxpayer advance fee income and related expenses during fiscal year 2017 from loan fees and other income to tax product fees and other expenses to tax product expense. Prior period amounts have also been reclassified.

As of March 31, 2017, certain insignificant adjustments to previously reported Earnings Per Share ("EPS") have been made to correctly reflect the effect of participating securities on basic and diluted EPS calculations in accordance with ASC 260. These changes were immaterial to the overall EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.

In fiscal 2017, the Company early adopted Accounting Standards Update ("ASU") 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The requirement to report the excess tax benefit related to settlements of share-based payment awards in earnings as an increase or (decrease) to income tax expense has been applied utilizing the prospective method. While the adoption of ASU 2016-09 requires retrospective application to all fiscal year periods presented, the Company elected to not recast previously reported financial statements as the impact was considered insignificant. However, the Company reclassified stock compensation from financing to operating activities on the Consolidated Statement of Cash Flows as of September 30, 2016 and September 30, 2015.

The Company reclassified goodwill, intangibles, and related amortization expenses during fiscal year 2017 from the Corporate Services / Other segment to Payments and Banking based on how the Company performs its annual impairment testing. Prior period amounts have also been reclassified to conform to the current year presentation.
    
In fiscal year 2016, the Company disclosed $89 thousand for proceeds from loan sales as a negative adjustment to net cash used in investing activities in the Consolidated Statements of Cash Flows. In fiscal 2017, the Company has corrected the fiscal year 2016 cash flow presentation to appropriately disclose this amount as a positive adjustment to net cash used in investing activities.  As a result, the prior period amount for net changes in loans receivable has been adjusted from $(217,807) thousand, as previously reported, to $(217,985) thousand. These adjustments are considered to be prior period immaterial corrections and do not have any impact on fiscal year 2017 net cash provided by (used in) operating activities, investing activities, and financing activities.  In fiscal year 2015, the Company disclosed $5,462 thousand for proceeds from loan sales as a negative adjustment to net cash used in investing activities. In fiscal year 2017, the Company has corrected the fiscal year 2015 cash flow presentation to appropriately disclose this amount as a positive adjustment to net cash used in investing activities.  As a result, the prior period amount for net changes in loans receivable has been adjusted from $(135,187) thousand, as previously reported, to $(146,111) thousand. These adjustments are considered to be prior period immaterial corrections and do not have any impact on fiscal year 2017 net cash provided by (used in) operating activities, investing activities, and financing activities.

NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company is currently undertaking a data analysis and ensuring its systems are capturing data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018.
    
ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the consolidated financial statements to be minimal.
 
ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company has finalized their initial assessment of the ASU and expects that the standard will be immaterial to the consolidated financial statements with the Company's current leases.

ASU No. 2014-9, 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 all income streams, including different prepaid card programs so as to ascertain how breakage will be recognized under the standard.

 ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company has determined that this update will not have an impact on the consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company early adopted the standard in the Company's third quarter of fiscal year 2017. Under the new standard, excess tax benefits and deficiencies related to employee stock-based compensation will be recognized directly within income tax expense or benefit in the consolidated statement of operations, rather than within additional paid-in capital. Additionally, as permitted under the new standard, the Company made an accounting policy election to account for forfeitures of awards as they occur, which represents a change from the current requirement to estimate forfeitures when recognizing compensation expense. The impact of applying that guidance reduced reported income tax expense by $0.5 million for the quarter ended June 30, 2017. All income tax-related cash flows resulting from share-based payments are reported as an operating activity in the consolidated statements of cash flows. The Company elected to adopt the change in cash flow classification on a prospective basis, which resulted in an increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statement of cash flows.
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the consolidated financial statements.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company is currently assessing the potential impact of early adoption for reclassification of certain prepayable debt securities from HTM to AFS.
v3.8.0.1
ACQUISITIONS
 12 Months Ended
Sep. 30, 2017
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
 
The Company completed two acquisitions for the fiscal year ended September 30, 2017. The two purchase transactions are detailed below.
 
EPS Financial
 
On November 1, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC ("EPS") from privately-held Drake Enterprises, Ltd. ("Drake"). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 ERO's nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services.
 
Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the November 1, 2016 tangible book value of EPS, included the payment of $21.9 million in cash, after adjustments, and the issuance of 369,179 shares of Meta Financial common stock. The Company acquired assets with approximate fair values of $17.9 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and $0.1 million of other assets, resulting in $30.4 million of goodwill.

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

Stock issued
26,507

Total consideration paid
48,384

 
 

Fair value of assets acquired
 
Intangible assets
17,930

Other assets
79

Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375



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





 
SCS

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

Under the terms of the purchase agreement, the aggregate purchase price paid at closing, which was based upon the December 14, 2016 tangible book value of SCS, was approximately $7.5 million in cash and the issuance of 113,328 shares of Meta Financial common stock. In addition, contingent cash consideration of $17.5 million was paid out in the third quarter of fiscal 2017 and equity contingent consideration of 264,431 shares of Meta Financial common stock was paid in the fourth quarter of fiscal 2017 following the achievement of specified performance benchmarks (described more fully below). The Company acquired assets with approximate fair values of $28.3 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and negligible other assets, resulting in goodwill of $31.4 million. All amounts are at estimated fair market values.

Subject to the equity earn-out terms of the purchase agreement, SCS was eligible to receive up to an aggregate of 264,431 shares of Meta Financial common stock within 20 days after the applicable equity earn-out statement was deemed final if certain targets achieved. The equity earn-out measurements were as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit met or exceeded the statement amount, MetaBank would deliver to SCS a stated number of shares of Meta Financial common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts was greater than or equal to the agreed upon volume amount, then MetaBank would deliver to SCS a stated number of shares of Meta Financial common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract was in effect and none of such agreements was amended or modified as of such time (except as approved in writing by the President of MetaBank, in his or her sole discretion), then MetaBank would deliver to SCS a stated number of shares of Meta Financial common stock. None of the equity earn-out payments was contingent on the achievement of any of the other equity earn-out targets. Upon the determined equity earn-out measurement date, MetaBank determined that each of the three earn-out measurement targets was achieved and the Company issued an aggregate of 264,431 shares of Meta Financial common stock in the fourth quarter of fiscal 2017.

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

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

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

Stock issued
10,789

Paid Consideration
18,337

Contingent consideration - cash
17,252

Contingent consideration - equity
24,142

Contingent consideration payable
41,394

    Total consideration paid
59,731

 
 

Fair value of assets acquired
 

Intangible assets
28,310

Other assets
2

Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
$
31,419


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

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

The Company recognized $0.8 million of pre-tax transaction related expenses during the fiscal year ended 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting.
v3.8.0.1
LOANS RECEIVABLE, NET
 12 Months Ended
Sep. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET

 Year-end loans receivable were as follows:
 
September 30, 2017
 
September 30, 2016
 
(Dollars in Thousands)
   1-4 Family Real Estate
$
196,706

 
$
162,298

   Commercial and Multi-Family Real Estate
585,510

 
422,932

   Agricultural Real Estate
61,800

 
63,612

   Consumer
163,004

 
37,094

   Commercial Operating
35,759

 
31,271

   Agricultural Operating
33,594

 
37,083

   Premium Finance
250,459

 
171,604

Total Loans Receivable
1,326,832

 
925,894

 
 
 
 
Allowance for Loan Losses
(7,534
)
 
(5,635
)
Net Deferred Loan Origination Fees
(1,461
)
 
(789
)
Total Loans Receivable, Net
$
1,317,837

 
$
919,470



Annual activity in the allowance for loan losses was as follows:
 
Year ended September 30,
2017

 
2016

 
2015

 
(Dollars in Thousands)
Beginning balance
$
5,635

 
$
6,255

 
$
5,397

Provision for loan losses
10,589

 
4,605

 
1,465

Recoveries
307

 
147

 
123

Charge offs
(8,997
)
 
(5,372
)
 
(730
)
Ending balance
$
7,534

 
$
5,635

 
$
6,255


Allowance for Loan Losses and Recorded Investment in loans at September 30, 2017 and 2016 were as follows:
 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

Provision (recovery) for loan losses
149

 
610

 
1,248

 
6,830

 
1,165

 
(160
)
 
773

 
(26
)
 
10,589

Charge offs
—

 
(138
)
 
—

 
(7,084
)
 
(1,149
)
 
—

 
(626
)
 
—

 
(8,997
)
Recoveries
—

 
—

 
—

 
209

 
25

 
12

 
61

 
—

 
307

Ending balance
$
803

 
$
2,670

 
$
1,390

 
$
6

 
$
158

 
$
1,184

 
$
796

 
$
527

 
$
7,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance: collectively evaluated for impairment
803

 
2,670

 
1,390

 
6

 
158

 
1,184

 
796

 
527

 
7,534

Total
$
803

 
$
2,670

 
$
1,390

 
$
6

 
$
158

 
$
1,184

 
$
796

 
$
527

 
$
7,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
72

 
1,109

 
—

 
—

 
—

 
—

 
—

 
—

 
1,181

Ending balance: collectively evaluated for impairment
196,634

 
584,401

 
61,800

 
163,004

 
35,759

 
33,594

 
250,459

 
—

 
1,325,651

Total
$
196,706

 
$
585,510

 
$
61,800

 
$
163,004

 
$
35,759

 
$
33,594

 
$
250,459

 
$
—

 
$
1,326,832

 
 
1-4 Family
Real
Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan losses
408

 
1,369

 
(21
)
 
748

 
338

 
1,045

 
914

 
(196
)
 
4,605

Charge offs
(32
)
 
(385
)
 
—

 
(728
)
 
(249
)
 
(3,252
)
 
(726
)
 
—

 
(5,372
)
Recoveries
—

 
27

 
—

 
11

 
—

 
2

 
107

 
—

 
147

Ending balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
10

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10

Ending balance: collectively evaluated for impairment
644

 
2,198

 
142

 
51

 
117

 
1,332

 
588

 
553

 
5,625

Total
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
162

 
433

 
—

 
—

 
—

 
—

 
—

 
—

 
595

Ending balance: collectively evaluated for impairment
162,136

 
422,499

 
63,612

 
37,094

 
31,271

 
37,083

 
171,604

 
—

 
925,299

Total
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
—

 
$
925,894



The asset classification of loans at September 30, 2017, and 2016, were as follows:
 
September 30, 2017
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
$
195,838

 
$
574,730

 
$
27,376

 
$
163,004

 
$
35,759

 
$
18,394

 
$
250,459

 
$
1,265,560

Watch
525

 
10,200

 
2,006

 
—

 
—

 
4,541

 
—

 
17,272

Special Mention
247

 
201

 
2,939

 
—

 
—

 
—

 
—

 
3,387

Substandard
96

 
379

 
29,479

 
—

 
—

 
10,659

 
—

 
40,613

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
196,706

 
$
585,510

 
$
61,800

 
$
163,004

 
$
35,759

 
$
33,594

 
$
250,459

 
$
1,326,832


September 30, 2016
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
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894



Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.”  The loan classification and risk rating definitions are as follows:
 
Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.
 
Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.
 
Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.
 
The adverse classifications are as follows:
 
Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors, the asset’s classification as loss is not yet appropriate.
 
Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.
 
Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status but written off when the collection of principal and interest become doubtful.
 
Past due loans at September 30, 2017 and 2016 were as follows:
September 30, 2017
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
$
370

 
$
79

 
$
—

 
$
449

 
$
196,257

 
$
—

 
$
196,706

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
584,825

 
685

 
585,510

Agricultural Real Estate
—

 
—

 
34,198

 
34,198

 
27,602

 
—

 
61,800

Consumer
2,512

 
558

 
1,406

 
4,476

 
158,528

 
—

 
163,004

Commercial Operating
—

 
—

 
—

 
—

 
35,759

 
—

 
35,759

Agricultural Operating
—

 
—

 
97

 
97

 
33,497

 
—

 
33,594

Premium Finance
1,509

 
2,442

 
1,205

 
5,156

 
245,303

 
—

 
250,459

Total
$
4,391

 
$
3,079

 
$
36,906

 
$
44,376

 
$
1,281,771

 
$
685

 
$
1,326,832

September 30, 2016
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
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894



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 90 days or more for retail bank loans. Specialty finance loans and Payment segment loans are generally not impaired but written off when the collection of principal and interest become doubtful. As of September 30, 2017, there were no specialty finance loans greater than 210 days past due and the Payment segment had no loans past due.

Impaired loans at September 30, 2017 and 2016 were as follows:
 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2017
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
72

 
$
72

 
$
—

Commercial and Multi-Family Real Estate
1,109

 
1,109

 
—

      Total
$
1,181

 
$
1,181

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

      Total
$
—

 
$
—

 
$
—


 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2016
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
84

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

Total
$
78

 
$
78

 
$
10


Cash interest collected on impaired loans was not material during the years ended September 30, 2017 and 2016.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2017 and 2016.
 
 
Year Ended September 30,
 
2017
 
2016
 
Average
Recorded
Investment
 
Average
Recorded
Investment
1-4 Family Real Estate
$
176

 
$
144

Commercial and Multi-Family Real Estate
883

 
1,117

Agricultural Real Estate
146

 
—

Commercial Operating
202

 
6

Agricultural Operating
268

 
2,919

Total
$
1,675

 
$
4,186



For fiscal 2017 and 2016, the Company’s TDRs (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table above.
 
No TDRs were recorded during fiscal 2017 or 2016.  Also, no TDRs which had been modified during the 12-month period prior to default had a payment default during fiscal 2017 or 2016.
 
In December 2016, MetaBank purchased, net of purchase discount, a $134.0 million seasoned, floating rate, private student loan portfolio. All loans are indexed to three-month LIBOR plus various margins. The portfolio is serviced by ReliaMax Lending Services, LLC and insured by ReliaMax Surety Company.

The majority of the Company’s retail bank originated loans are to Iowa- and South Dakota-based individuals and organizations. Excluding the purchased student loan balance of $123.7 million at September 30, 2017, the Company’s purchased loans portfolio totaled $10.7 million at September 30, 2017, which were secured by properties located in Iowa, North Dakota, and South Dakota.
 
The Company originates and purchases commercial real estate loans.  These loans are considered by management to be of somewhat greater risk of not being collected due to the dependency on income production.  The Company’s commercial real estate loans included $110.2 million of loans secured by hotel properties and $156.4 million of multi-family properties at September 30, 2017.  The Company’s commercial real estate loans included $65.4 million of loans secured by hotel properties and $112.6 million of multi-family properties at September 30, 2016.  The remainder of the commercial real estate portfolio is diversified by industry.  The Company’s policy for requiring collateral and guarantees varies with the creditworthiness of each borrower.
 


Non-accruing loans were $0.7 million and $0.1 million at September 30, 2017 and 2016, respectively.  There were $36.9 million and $1.0 million in accruing loans delinquent 90 days or more at September 30, 2017 and 2016, respectively.  For the year ended September 30, 2017, gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to approximately $13,000, none of which was included in interest income.
v3.8.0.1
LOAN SERVICING
 12 Months Ended
Sep. 30, 2017
Transfers and Servicing [Abstract]  
LOAN SERVICING
LOAN SERVICING
 
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at year-end were as follows:
 
September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
3,162

 
$
3,980

 
$
5,055

Other
18,649

 
15,452

 
17,156

 
$
21,811

 
$
19,432

 
$
22,211
v3.8.0.1
EARNINGS PER COMMON SHARE
 12 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE
 
EPS is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the EPS calculation. Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in the EPS calculations.
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2017, 2016 and 2015 is presented below.
 
 
2017
 
2016 (1)
 
2015
 
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
44,917

 
$
33,220

 
$
18,055

Weighted average common shares outstanding
9,247,092

 
8,443,956

 
6,730,086

Basic income per common share
$
4.86

 
$
3.93

 
$
2.68

 
 
 
 
 
 
Diluted income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
44,917

 
$
33,220

 
$
18,055

Weighted average common shares outstanding
9,247,092

 
8,443,956

 
6,730,086

     Outstanding options - based upon the two-class method
55,652

 
53,390

 
61,499

Weighted average diluted common shares outstanding
9,302,744

 
8,497,346

 
6,791,585

Diluted income per common share
$
4.83

 
$
3.91

 
$
2.66


(1) See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.
All stock options were considered in computing diluted EPS for the years ended September 30, 2017 and September 30, 2016. Stock options totaling 28,891 were not considered in computing diluted earnings per common share for the year ended September 30, 2015 because they were anti-dilutive.
v3.8.0.1
SECURITIES
 12 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
 
Securities available for sale at September 30, 2017 and 2016 were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
825

 
—

 
57,871

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

 
14,983

 
(3,037
)
 
950,829

Asset-backed securities
94,451

 
2,381

 
—

 
96,832

Mortgage-backed securities
588,918

 
1,259

 
(3,723
)
 
586,454

Total debt securities
1,679,298

 
19,448

 
(6,760
)
 
1,691,986

Common equities and mutual funds
1,009

 
436

 
—

 
1,445

Total available for sale securities
$
1,680,307

 
$
19,884

 
$
(6,760
)
 
$
1,693,431


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
14,935

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

Non-bank qualified obligations of states and political subdivisions
668,628

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249



Securities held to maturity at September 30, 2017 and 2016 were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
157

 
$
(36
)
 
$
19,368

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

 
4,744

 
(2,976
)
 
432,361

Mortgage-backed securities
113,689

 
—

 
(1,233
)
 
112,456

Total held to maturity securities
$
563,529

 
$
4,901

 
$
(4,245
)
 
$
564,185


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
20,626

 
$
355

 
$
(44
)
 
$
20,937

Non-bank qualified obligations of states and political subdivisions
465,469

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574



Included in securities available for sale are trust preferred securities as follows:
 
At September 30, 2016
 
 
 
 
 
 
 
 
     
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

 
$
4,189

 
$
(798
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
4,981

 
4,077

 
(904
)
 
BB
 
Baa2
PNC Capital Trust
4,968

 
4,712

 
(256
)
 
BBB-
 
Baa1
Total
$
14,936

 
$
12,978

 
$
(1,958
)
 
 
 
  

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

The Company sold all of its trust preferred securities during the first quarter of fiscal year 2017.

Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows.  Management also determines whether the Company intends to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity.  To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.
 
Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: available for sale, held to maturity or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income.  HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial did not have any trading securities at September 30, 2017.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2017, and 2016, were as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
280,900

 
(2,887
)
 
5,853

 
(150
)
 
286,753

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

 
(1,625
)
 
100,287

 
(2,098
)
 
338,184

 
(3,723
)
Total debt securities
518,797

 
(4,512
)
 
106,140

 
(2,248
)
 
624,937

 
(6,760
)
Total available for sale securities
$
518,797

 
$
(4,512
)
 
$
106,140

 
$
(2,248
)
 
$
624,937

 
$
(6,760
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

 
$
(1,957
)
Non-bank qualified obligations of states and political subdivisions
8,481

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

 
(3
)
Total available for sale securities
$
151,949

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)


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

 
$
(6
)
 
$
4,089

 
$
(30
)
 
$
5,453

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

 
(2,783
)
 
6,206

 
(193
)
 
208,224

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

 
(1,233
)
 
—

 
—

 
112,456

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

 
$
(4,022
)
 
$
10,295

 
$
(223
)
 
$
326,133

 
$
(4,245
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
2,909

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

 
$
(44
)
Non-bank qualified obligations of states and political subdivisions
1,294

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

 
(31
)
Total held to maturity securities
$
24,264

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)


As of September 30, 2017 and 2016, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2017 or 2016.
 
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
—

Due after one year through five years
36,586

 
37,674

Due after five years through ten years
347,831

 
358,198

Due after ten years
705,963

 
709,660

 
1,090,380

 
1,105,532

Mortgage-backed securities
588,918

 
586,454

Common equities and mutual funds
1,009

 
1,445

Total available for sale securities
$
1,680,307

 
$
1,693,431

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
1,480

Due after one year through five years
17,926

 
18,160

Due after five years through ten years
144,996

 
147,832

Due after ten years
285,435

 
284,257

 
449,840

 
451,729

Mortgage-backed securities
113,689

 
112,456

Total held to maturity securities
$
563,529

 
$
564,185


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
472

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574



Activities related to the sale of securities are summarized below.
 
 
2017
 
2016
 
2015
September 30,
(Dollars in Thousands)
Available For Sale
 
 
 
 
 
   Proceeds from sales
$
457,306

 
$
285,508

 
$
566,371

   Gross gains on sales
4,091

 
1,459

 
2,753

   Gross losses on sales
4,628

 
1,785

 
4,387

 Net (loss) on available for sale securities
(537
)
 
(326
)
 
(1,634
)
 
 
 
 
 
 
Held To Maturity
 
 
 
 
 
   Net carrying amount of securities sold
$
5,826

 
$
—

 
$
—

   Gross realized gain on sales
92

 
—

 
—

   Gross realized losses on sales
48

 
—

 
—

Net gain on held to maturity securities
44

 
—

 
—



The Company's decision to sell securities held to maturity in the fourth quarter of fiscal 2017 was due to credit deteriorations of the securities based on the Company's internal credit analysis as well as respective downgrades from credit agencies.
v3.8.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2017
Property, Plant and Equipment [Abstract]  
PREMISES, FURNITURE, AND EQUIPMENT, NET
PREMISES, FURNITURE AND EQUIPMENT, NET
 
Year-end premises and equipment were as follows:
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
Land
$
1,578

 
$
1,578

Buildings
10,642

 
10,482

Furniture, fixtures, and equipment
46,934

 
41,756

Capitalized leases
2,259

 
2,259

 
61,413

 
56,075

Less: accumulated depreciation and amortization
(42,093
)
 
(37,449
)
Net book value
$
19,320

 
$
18,626



Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $5.5 million, $5.4 million and $4.6 million for the years ended September 30, 2017, 2016 and 2015, respectively. Amortization expense on capitalized leases for the years ended September 30, 2017, 2016 and 2015, was $0.1 million, $0.2 million and $0.2 million, respectively, and is included in occupancy and equipment expense. Substantially all of the Company's capitalized leases at September 30, 2017 were building leases.
v3.8.0.1
TIME CERTIFICATES OF DEPOSITS
 12 Months Ended
Sep. 30, 2017
Deposits [Abstract]  
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS
 
Time certificates of deposits in denominations of $250,000 or more were approximately $85.2 million and $44.5 million at September 30, 2017, and 2016, respectively.
 
At September 30, 2017, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2018
$
560,825

2019
10,943

2020
5,158

2021
2,412

2022
2,227

Thereafter
—

Total Certificates (1)
$
581,565


(1) As of September 30, 2017, total certificates of deposits included $457.9 million of brokered certificates of deposits, which are recored in Wholesale deposits on the consolidated statements of financial condition.

Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $250,000 by the DIF under management of the FDIC.
v3.8.0.1
SHORT TERM AND LONG TERM DEBT
 12 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
SHORT TERM AND LONG TERM DEBT
SHORT TERM DEBT AND LONG TERM DEBT

Short Term Debt
September 30,
2017
 
2016
 
 
 
 
Overnight federal funds purchased
$
987,000

 
$
992,000

Short-term FHLB advances
415,000

 
100,000

Short-term capital lease
62

 
79

Repurchase agreements
2,472

 
3,039

     Total
1,404,534

 
1,095,118



The Company had $987.0 million of overnight federal funds purchased from the FHLB as of September 30, 2017. The Company had $992.0 million in overnight federal funds purchased from the FHLB at September 30, 2016. At September 30, 2017, the Company’s short-term advances from the FHLB totaled $415.0 million and carried a net weighted average rate of 1.27%. The Company had $100.0 million in short-term advances from the FHLB at September 30, 2016.
 
The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in all mortgage collateral and securities collateral.  The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB.  Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement.
 
At fiscal year-end 2017 and 2016, the Bank pledged securities with fair values of approximately $1.07 billion and $824.5 million, respectively, against specific FHLB advances.  In addition, qualifying mortgage loans of approximately $628.0 million, and $501.0 million were pledged as collateral at September 30, 2017, and 2016, respectively.

As of September 30, 2017, the Company had three capital leases, two equipment leases and one property lease.  At September 30, 2017, the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $79,507.

Securities sold under agreements to repurchase totaled approximately $2.5 million and $3.0 million at September 30, 2017, and 2016, respectively.

An analysis of securities sold under agreements to repurchase at September 30, 2017 and 2016 follows:

September 30,
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,782

 
$
3,468

Average balance
2,225

 
2,179

Weighted average interest rate for the year
0.98
%
 
0.60
%
Weighted average interest rate at year end
1.59
%
 
0.61
%


The Company pledged securities with fair values of approximately $9.3 million at September 30, 2017, as collateral for securities sold under agreements to repurchase.  There were $9.2 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2016.

Long Term Debt
September 30,
2017
 
2016
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
—

 
$
7,000

Trust preferred securities
10,310

 
10,310

Subordinated debentures (net of issuance costs)
73,347

 
73,211

Long-term capital lease
1,876

 
1,939

     Total
85,533

 
92,460



At September 30, 2017, the Company had no long-term advances from the FHLB. The Company had $7.0 million in long-term advances from the FHLB at September 30, 2016 which carried a weighted average rate of 6.98%. The $7.0 million of long-term advances were paid off by the Company during the fourth quarter of 2017.

At September 30, 2017, the scheduled maturities of the Company's long-term debt were as follows for the years ending:
September 30,
 
 
 
 
(Dollars in Thousands)
Trust preferred securities
Subordinated debentures
Long-term capital lease
Total
2018
$
—

$
—

$
—

$
—

2019
—

—

65

65

2020
—

—

72

72

2021
—

—

77

77

2022
—

—

82

82

Thereafter
10,310

73,347

1,580

85,237

Total long-term debt
$
10,310

$
73,347

$
1,876

$
85,533



Trust preferred securities are due to First Midwest Financial Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company.  The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities.  The securities bear the same interest rate and terms as the trust preferred securities.  The securities are included on the consolidated statements of financial condition as liabilities. 

The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities.  Distributions are paid semi-annually.  Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% (5.22% at September 30, 2017, and 4.99% at September 30, 2016), not to exceed 12.5%.  The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031.  At the end of any deferral period, all accumulated and unpaid distributions are required to be paid.  The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date.  The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption.
 
Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock.
 
Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations.

The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million. At September 30, 2017, the Company had $73.3 million in subordinated debentures, net of issuance costs of $1.7 million. Accumulated interest expense on the subordinated debentures was $4.3 million as of September 30, 2017.
    
As of September 30, 2017, the Company had three capital leases, two equipment leases and one property lease.  At September 30, 2017, the portion of the liability expected to be expensed and amortized beyond 12 months is $1.9 million.  The majority of the $1.9 million is related to the Urbandale, Iowa retail branch location.
v3.8.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 12 Months Ended
Sep. 30, 2017
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 
The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21.  ESOP expense of $1,668,000, $1,150,000 and $994,000 was recorded for the years ended September 30, 2017, 2016 and 2015, respectively.  Contributions of $1,606,102, $1,174,682 and $992,038 were made to the ESOP during the years ended September 30, 2017, 2016 and 2015, respectively.
 
Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation.  Benefits generally become 100% vested after seven years of credited service.  Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule.  Forfeitures are reallocated among remaining participating employees in the same proportion as contributions.  Benefits are payable in the form of stock upon termination of employment.  The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated.
 
For the years ended September 30, 2017, 2016 and 2015, 20,486 shares, 19,381 shares and 23,750 shares, from the suspense account, with a fair value of $78.40, $60.61 and $41.77 per share, respectively, were released. For the years ended September 30, 2017, 2016 and 2015, allocated shares and total ESOP shares reflect 14,126 shares, 15,502 shares and 10,294 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings.  At September 30, 2017, 2016 and 2015, there were 1,479, 2,710 and 2,974 shares purchased, respectively, for dividend reinvestment.

Year-end ESOP shares are as follows:
 
At September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
256,219

 
262,872

 
256,283

Unearned shares
—

 
—

 
—

Total ESOP shares
256,219

 
262,872

 
256,283

Fair value of unearned shares
$
—

 
$
—

 
$
—



The Company also has a profit sharing plan covering substantially all full-time employees.  Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2017, 2016 and 2015 was $1.61 million, $1.26 million and $1.10 million, respectively.
v3.8.0.1
SHARE BASED COMPENSATION PLANS
 12 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS
 
The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.
 
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2017, 2017 and 2016.
 
Year Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively
$
6,486

 
$
559

 
$
334



As of September 30, 2017, stock-based compensation expense not yet recognized in income totaled $16.9 million, which is expected to be recognized over a weighted-average remaining period of 4.08 years.
 
At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model.  The exercise price of stock options equals the fair market value of the underlying stock at the date of grant.  Options are issued for 10-year periods with 100% vesting generally occurring either at grant date or over a four-year period.  No options were granted during the years ended September 30, 2017, 2016 or 2015.  The intrinsic value of options exercised during the years ended September 30, 2017, 2016 and 2015 were $1.8 million, $1.5 million and $0.9 million, respectively.
 
Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date.  Director shares are issued to the Company’s directors, and these shares vest immediately.  The total fair value of director’s shares granted during the years ended September 30, 2017, 2016 and 2015 was $0.5 million, $0.2 million and $0.1 million, respectively.
 
In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan.  No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2017; however, previously awarded options were exercised under this plan during the year ended September 30, 2017.

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

The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2017 and 2016.
 
 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

Granted
—

 
—

 
—

 
—

Exercised
(29,386
)
 
33.38

 
—

 
1,790

Forfeited or expired
(20,417
)
 
26.25

 
—

 
1,464

Options outstanding, September 30, 2017
75,757

 
$
22.62

 
2.28

 
$
4,225

 
 
 
 
 
 
 
 
Options exercisable end of year
75,757

 
$
22.62

 
2.28

 
$
4,225


 
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
(63,528
)
 
25.77

 
—

 
1,510

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

 
 
 
 
 
 
 
 
Options exercisable end of year
125,560

 
$
25.73

 
2.68

 
$
4,379



 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37

Granted
316,604

 
87.49

Vested
(29,135
)
 
64.22

Forfeited or expired
(3,599
)
 
56.39

Nonvested shares outstanding, September 30, 2017
304,526

 
$
86.96


 
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
8,154

 
42.49

Vested
(33,666
)
 
40.93

Forfeited or expired
2,166

 
46.98

Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37
v3.8.0.1
INCOME TAXES
 12 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following:
 
Years ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
12,153

 
$
4,410

 
$
4,217

Deferred
(5,040
)
 
(440
)
 
(3,896
)
 
7,113

 
3,970

 
321

 
 
 
 
 
 
State:
 

 
 

 
 

Current
4,366

 
1,422

 
1,048

Deferred
(1,246
)
 
210

 
(1
)
 
3,120

 
1,632

 
1,047

 
 
 
 
 
 
Income tax expense
$
10,233

 
$
5,602

 
$
1,368



Total income tax expense differs from the statutory federal income tax rate as follows:
 
Years ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
 
 
Income tax expense at federal tax rate
$
19,303

 
$
13,588

 
$
6,798

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes net of federal benefit
2,014

 
933

 
692

Nontaxable buildup in cash surrender value
(776
)
 
(580
)
 
(711
)
Stock based compensation
(593
)
 
(66
)
 
(37
)
Tax exempt income
(9,991
)
 
(8,257
)
 
(5,230
)
Nondeductible expenses
316

 
196

 
188

Other, net
(40
)
 
(212
)
 
(332
)
Total income tax expense
$
10,233

 
$
5,602

 
$
1,368



The components of the net deferred tax asset (liability) at September 30, 2017 and 2016 were:
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
2,832

 
$
2,044

Deferred compensation
1,548

 
1,345

Stock based compensation
3,436

 
265

Operational reserve
645

 
540

AMT Credit
1,869

 
5,563

Intangibles
5,235

 
393

Indirect tax benefits of unrecognized tax positions
266

 
216

Other assets
1,933

 
1,362

 
17,764

 
11,728

 
 
 
 
Deferred tax liabilities:
 

 
 

FHLB stock dividend
(425
)
 
(411
)
Premises and equipment
(1,789
)
 
(1,913
)
Patents
(842
)
 
(988
)
Prepaid expenses
(673
)
 
(668
)
Net unrealized gains on securities available for sale
(4,934
)
 
(12,348
)
 
(8,663
)
 
(16,328
)
 
 
 
 
Net deferred tax assets (liabilities)
$
9,101

 
$
(4,600
)



As of September 30, 2017 and 2016, the Company had a gross deferred tax asset of $1.3 million and $0.9 million, respectively, for separate company state cumulative net operating loss carryforwards, which was fully reserved for as the Company does not anticipate any state taxable income at the holding company level in future periods.

In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2017, or 2016 with the exception of the state cumulative net operating loss carryforwards discussed above.
 
Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling $6.7 million for the Bank.  Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $2.3 million at September 30, 2017 and 2016.  If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $2.3 million would be recorded as expense.
 
The provisions of ASC 740, Income Taxes, address the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements.  Under ASC 740, the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination, with a tax examination being presumed to occur, including the resolution of any related appeals or litigation.  The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.
 
The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review.  While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve.  With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the consolidated financial statements and the final resolution of a tax issue during the period.
 
The tax years ended September 30, 2014 and later remain subject to examination by the Internal Revenue Service.  For state purposes, the tax years ended September 30, 2014 and later remain open for examination, with few exceptions.
 
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2017, and 2016 follows:
 
September 30,
2017

 
2016

 
(Dollars in Thousands)
Balance at beginning of year
$
525

 
$
974

Additions for tax positions related to the current year
192

 
63

Additions for tax positions related to the prior years
31

 
—

Reductions for tax positions due to settlement with taxing authorities
—

 
(372
)
Reductions for tax positions related to prior years
(103
)
 
(140
)
Balance at end of year
$
645

 
$
525


 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $460,000 as of September 30, 2017.  The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense.  The amount of accrued interest related to unrecognized tax benefits was $114,000 as of September 30, 2017.  The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months.
v3.8.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2017
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
In July 2013, the Company’s primary federal regulator, the Federal Reserve and the Bank’s primary federal regulator, the OCC, approved final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards.  The Basel III Capital Rules substantially revised the risk-based capital requirements applicable to financial institution holding companies and their depository institution subsidiaries, including us and the Bank, as compared to U.S. general risk-based capital rules. The Basel III Capital Rules revised the definitions and the components of regulatory capital, as well as addressed other issues affecting the numerator in banking institutions’ regulatory capital ratios.  The Basel III Capital Rules also addressed asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replaced the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. In addition, the Basel III Capital Rules implemented certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The Basel III Capital Rules became effective for us and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. 

Pursuant to the Basel III Capital Rules, the Company and Bank, respectively, are subject to new regulatory capital adequacy requirements promulgated by the Federal Reserve and the OCC. Failure by our Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Prior to January 1, 2015, our Bank was subject to capital requirements under Basel I and there were no capital requirements for our Company. Under the capital requirements and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined).  At September 30, 2017, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements.  The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components.  The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.

 
Company
 
Bank
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
7.64
%
 
9.64
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
13.97

 
18.22

 
4.50

 
6.50

Tier 1 capital ratio
14.46

 
18.22

 
6.00

 
8.00

Total qualifying capital ratio
18.41

 
18.59

 
8.00

 
10.00

 
 
 
 
 
 
 
 
September 30, 2016
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.35
%
 
10.35
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
17.28

 
21.95

 
4.50

 
6.50

Tier 1 capital ratio
17.82

 
21.95

 
6.00

 
8.00

Total qualifying capital ratio
23.17

 
22.35

 
8.00

 
10.00



The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach (1)
September 30, 2017
 
(Dollars in Thousands)
 
 
Total equity
$
434,496

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
95,332

LESS: Certain other intangible assets
41,743

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
1,495

LESS: Net unrealized gains (losses) on available-for-sale securities
9,166

Common Equity Tier 1 (1)
286,760

Long-term debt and other instruments qualifying as Tier 1
10,310

LESS: Additional tier 1 capital deductions
374

Total Tier 1 capital
296,696

Allowance for loan losses
7,718

Subordinated debentures (net of issuance costs)
73,347

Total qualifying capital
377,761


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

Beginning January 1, 2016, Basel III implemented a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2016, the Company and Bank were expected to comply with the capital conservation buffer requirement, which increased the three risk-based capital ratios by 0.625% each year through 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively.
v3.8.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
 
In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements.
 
At September 30, 2017 and 2016, unfunded loan commitments approximated $233.2 million and $182.9 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are cancelled upon expiration of the commitment term as outlined in each individual contract.
 
The Company had no commitments to purchase or sell securities at September 30, 2017 or September 30, 2016.
 
The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Management monitors several factors when estimating its allowance for uncollectible off-balance-sheet credit exposures, including, but not limited to, economic developments and historical loss rates.
 
Since certain commitments to make loans and to fund lines of credit expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
 
Securities with fair values of approximately $5.7 million and $5.8 million at September 30, 2017 and 2016, respectively, were pledged as collateral for public funds on deposit.  Securities with fair values of approximately $3.8 million and $3.4 million at September 30, 2017, and 2016, respectively, were pledged as collateral for individual, trust and estate deposits.
 

Legal Proceedings
 
The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“INB”) that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of 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.

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

Other than the matters set forth above and litigation routine to the Company's or its subsidiaries' respective businesses, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party.
v3.8.0.1
LEASE COMMITMENTS
 12 Months Ended
Sep. 30, 2017
Leases [Abstract]  
LEASE COMMITMENTS
LEASE COMMITMENTS
 
The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2036, and require annual rentals ranging from $12,000 to $789,000 plus the payment of the property taxes, normal maintenance, and insurance on certain properties. The Company also entered into capital lease agreements during the fiscal year ended September 30, 2015, for building and equipment expiring at various times through fiscal year 2035. Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2017, and included in interest expense.

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

The following table shows the total minimum rental commitment for our operating and capital leases for each of the years presented below as of September 30, 2017.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2018
$
2,486

 
$
179

2019
2,287

 
179

2020
2,289

 
182

2021
2,143

 
182

2022
1,882

 
182

Thereafter
17,922

 
2,240

Total Leases Commitments
$
29,009

 
$
3,144

 
 
 
 
Amounts representing interest
 

 
$
1,206

Present value of net minimum lease payments
 

 
1,938
v3.8.0.1
SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in Corporate Services/Other. Specialty Lending and Retail Bank are reported in the Banking segment. MPS, Refund Advantage, EPS, SCS, and other tax businesses are reported in the Payments segment.

The Company reclassified goodwill, intangibles, and related amortization expenses during fiscal year 2017 from the Corporate Services / Other segment to Payments and Banking based on how annual impairment testing is performed. Prior period amounts have also been reclassified to conform to the current year presentation.
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2017
 
 
 
 
 
 
 
Interest income
$
13,845

 
$
52,231

 
$
42,027

 
$
108,103

Interest expense
503

 
2,723

 
11,647

 
14,873

Net interest income
13,342

 
49,508

 
30,380

 
93,230

Provision for loan losses
7,613

 
2,976

 
—

 
10,589

Non-interest income
165,707

 
4,685

 
1,780

 
172,172

Non-interest expense
132,984

 
24,520

 
42,159

 
199,663

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

 
26,697

 
(9,999
)
 
55,150

 
 
 
 
 
 
 
 
Total assets
185,521

 
1,343,968

 
3,698,843

 
5,228,332

Total goodwill
87,145

 
11,578

 
—

 
98,723

Total deposits
2,436,893

 
229,969

 
556,562

 
3,223,424

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

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income
9,530

 
36,990

 
30,785

 
77,305

Provision for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
77,411

 
23,001

 
34,236

 
134,648

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

 
14,635

 
(2,222
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
87,311

 
946,420

 
2,972,688

 
4,006,419

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2015
 
 
 
 
 
 
 
Interest income
$
7,261

 
$
31,394

 
$
22,952

 
$
61,607

Interest expense
169

 
1,377

 
841

 
2,387

Net interest income
7,092

 
30,017

 
22,111

 
59,220

Provision for loan losses
—

 
689

 
776

 
1,465

Non-interest income
54,417

 
3,358

 
399

 
58,174

Non-interest expense
47,731

 
19,028

 
29,747

 
96,506

Income (loss) before income tax expense (benefit)
13,778

 
13,658

 
(8,013
)
 
19,423

 
 
 
 
 
 
 
 
Total assets
93,336

 
724,834

 
1,711,535

 
2,529,705

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
1,424,304

 
233,235

 
(5
)
 
1,657,534
v3.8.0.1
PARENT COMPANY FINANCIAL STATEMENTS
 12 Months Ended
Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
PARENT COMPANY FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
 
Presented below are condensed financial statements for the parent company, Meta Financial, at the dates and for the years presented below.
 
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
14,569

 
$
15,716

Investment in subsidiaries
521,021

 
403,574

Other assets
406

 
413

Total assets
$
535,996

 
$
419,703

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
83,657

 
$
83,521

Other liabilities
17,843

 
1,207

Total liabilities
$
101,500

 
$
84,728

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
96

 
$
85

Additional paid-in capital
258,336

 
184,780

Retained earnings
167,164

 
127,190

Accumulated other comprehensive income
9,166

 
22,920

Treasury stock, at cost
(266
)
 
—

Total stockholders' equity
$
434,496

 
$
334,975

Total liabilities and stockholders' equity
$
535,996

 
$
419,703



CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Interest expense
$
4,959

 
$
1,022

 
$
418

Other expense
440

 
382

 
269

Total expense
5,399

 
1,404

 
687

 
 
 
 
 
 
Gain (loss) before income taxes and equity in undistributed net income of subsidiaries
(5,399
)
 
(1,404
)
 
(687
)
 
 
 
 
 
 
Income tax (benefit)
(1,935
)
 
(519
)
 
(324
)
 
 
 
 
 
 
Gain (loss) before equity in undistributed net income of subsidiaries
(3,464
)
 
(885
)
 
(363
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
48,381

 
34,105

 
18,418

 
 
 
 
 
 
Net income
$
44,917

 
$
33,220

 
$
18,055


 
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
44,917

 
$
33,220

 
$
18,055

Adjustments to reconcile net income to net cash provided by (used in) operating activities
 

 
 

 
 

Depreciation, amortization and accretion, net
136

 
(22
)
 
—

Equity in undistributed net income of subsidiaries
(48,381
)
 
(34,105
)
 
(18,418
)
Stock compensation
10,401

 
427

 
253

Change in other assets
7

 
(5
)
 
(15
)
Change in other liabilities
16,636

 
541

 
378

Net cash provided by (used in) operating activities
23,716

 
56

 
253

 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 

 
 

 
 

Capital contributions to subsidiaries
(82,820
)
 
(81,000
)
 
(67,600
)
Net cash used in investing activities
(82,820
)
 
(81,000
)
 
(67,600
)
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

 
 

Cash dividends paid
(4,839
)
 
(4,389
)
 
(3,493
)
Purchase of shares by ESOP
1,174

 
—

 
—

Proceeds from contingent consideration - equity
24,142

 
—

 
—

Proceeds from exercise of stock options & issuance of common stock
650

 
13,536

 
75,681

Issuance of common shares due to acquisition
37,296

 
—

 
—

Issuance of restricted stock
4

 
—

 
—

Proceeds from long term debt
—

 
75,000

 
—

Payment of debt issuance costs
—

 
(1,767
)
 
—

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

 
—

Other, net
—

 
—

 
—

Net cash provided by financing activities
57,957

 
82,380

 
72,188

 
 
 
 
 
 
Net change in cash and cash equivalents
$
(1,147
)
 
$
1,436

 
$
4,841

 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 

 
 

 
 

Beginning of year
$
15,716

 
$
14,280

 
$
9,439

End of year
$
14,569

 
$
15,716

 
$
14,280



The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company.  For further discussion, see Note 13 herein.
v3.8.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands)
Fiscal Year 2017
 
 
 
 
 
 
 
Interest income
$
22,575

 
$
27,718

 
$
28,861

 
$
28,949

Interest expense
2,742

 
3,752

 
3,918

 
4,461

Net interest income
19,833

 
23,966

 
24,943

 
24,488

Provision (recovery) for loan losses
843

 
8,649

 
1,240

 
(144
)
Net Income
1,244

 
32,142

 
9,787

 
1,744

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.14

 
$
3.44

 
$
1.05

 
$
0.19

Diluted
0.14

 
3.42

 
1.04

 
0.19

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2016
 

 
 

 
 

 
 

Interest income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision for loan losses
786

 
1,173

 
2,098

 
548

Net Income
4,058

 
14,283

 
8,873

 
6,006

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.49

 
$
1.68

 
$
1.04

 
$
0.70

Diluted
0.49

 
1.67

 
1.04

 
0.70

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2015
 

 
 

 
 

 
 

Interest income
$
14,232

 
$
15,758

 
$
15,254

 
$
16,363

Interest expense
661

 
473

 
593

 
660

Net interest income
13,571

 
15,285

 
14,661

 
15,703

Provision for loan losses
48

 
593

 
700

 
124

Net Income
3,595

 
5,181

 
4,640

 
4,639

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.58

 
$
0.79

 
$
0.67

 
$
0.64

Diluted
0.58

 
0.78

 
0.66

 
0.63

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13
v3.8.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS
 
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.
 
There were no transfers between levels of the fair value hierarchy for the years ended September 30, 2017 or 2016.
 
Securities Available for Sale and Held to Maturity.  Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  The Company’s Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds, corporate debt securities and trust preferred securities.  The Company had no Level 3 securities at September 30, 2017, or 2016.
 
The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model‑based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology and the third‑party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third-party provider include but are not limited to pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third-party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2017 and 2016.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
 
Fair Value At September 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
57,871

 
—

 
57,871

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,368

 
—

 
19,368

 
—

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

 
—

 
950,829

 
—

 
432,361

 
—

 
432,361

 
—

Asset-backed securities
96,832

 
—

 
96,832

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
586,454

 
—

 
586,454

 
—

 
112,456

 
—

 
112,456

 
—

Total debt securities
1,691,986

 
—

 
1,691,986

 
—

 
564,185

 
—

 
564,185

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,693,431

 
$
1,445

 
$
1,691,986

 
$
—

 
$
564,185

 
$
—

 
$
564,185

 
$
—


 
Fair Value At September 30, 2016
 
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
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

Non-bank qualified obligations of states and political subdivisions
698,672

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—



Foreclosed Real Estate and Repossessed Assets.  Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis.  The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets.
 
Loans.  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 September 30, 2017 and 2016.
 
 
Fair Value at September 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
Foreclosed Assets, net
292

 
—

 
—

 
292

Total
$
292

 
$
—

 
$
—

 
$
292


 
Fair Value At September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
68

 
$
—

 
$
—

 
$
68

Total
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
—

 
—

 
76

Total
$
144

 
$
—

 
$
—

 
$
144




 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2017
 
Fair Value at
September 30, 2016
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans, net
$
—

 
$
68

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
292

 
76

 
Market approach
 
Appraised values (1)

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

The following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates provided.  It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2017 and 2016, as more fully described below.  The operations of the Company are managed from a going concern basis and not a liquidation basis.  As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations.  Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value.  Neither of these components have been given consideration in the presentation of fair values below.

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2017 and 2016.

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

 
$
1,267,586

 
$
1,267,586

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,693,431

 
1,693,431

 
1,445

 
1,691,986

 
—

Securities held to maturity
563,529

 
564,185

 
—

 
564,185

 
—

Total securities
2,256,960

 
2,257,616

 
1,445

 
2,256,171

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
196,706

 
196,970

 
—

 
—

 
196,970

Commercial and multi-family real estate loans
585,510

 
576,330

 
—

 
—

 
576,330

Agricultural real estate loans
61,800

 
61,584

 
—

 
—

 
61,584

Consumer loans
163,004

 
163,961

 
—

 
—

 
163,961

Commercial operating loans
35,759

 
35,723

 
—

 
—

 
35,723

Agricultural operating loans
33,594

 
32,870

 
—

 
—

 
32,870

Premium finance loans
250,459

 
250,964

 
—

 
—

 
250,964

Total loans receivable
1,326,832

 
1,318,402

 
—

 
—

 
1,318,402

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
61,123

 
61,123

 
—

 
61,123

 
—

Accrued interest receivable
19,380

 
19,380

 
19,380

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,454,057

 
2,454,057

 
2,454,057

 
—

 
—

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

 
169,557

 
169,557

 
—

 
—

Certificates of deposit
123,637

 
123,094

 
—

 
123,094

 
—

Wholesale non-maturing deposits
18,245

 
18,245

 
18,245

 
—

 
—

Wholesale certificates of deposits
457,928

 
457,509

 
—

 
457,509

 
—

Total deposits
3,223,424

 
3,222,462

 
2,641,859

 
580,603

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
415,000

 
415,003

 
—

 
415,003

 
—

Federal funds purchased
987,000

 
987,000

 
987,000

 
—

 
—

Securities sold under agreements to repurchase
2,472

 
2,472

 
—

 
2,472

 
—

Capital leases
1,938

 
1,938

 
—

 
1,938

 
—

Trust preferred securities
10,310

 
10,447

 
—

 
10,447

 
—

Subordinated debentures
73,347

 
76,500

 
—

 
76,500

 
—

Accrued interest payable
2,280

 
2,280

 
2,280

 
—

 
—

 
September 30, 2016
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
773,830

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

Interest bearing demand deposits, savings, and money markets
136,568

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital leases
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—



The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2017 and 2016.
 

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 September 30, 2017 and 2016.  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.
 
FHLB STOCK
 
The fair value of such stock is assumed to approximate book value since the Company is generally able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
 
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
 
The carrying values of non-interest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty.  The fair value of time certificates of deposit and wholesale certificates of deposit were estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities.
 
In accordance with ASC 825, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under ASC 825.
 
ADVANCES FROM FHLB
 
The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.
 
FEDERAL FUNDS PURCHASED
 
The carrying amount of federal funds purchased is assumed to approximate the fair value.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, CAPITAL LEASES, SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES
 
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
 
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 
LIMITATIONS
 
Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
v3.8.0.1
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
 
The Company had a total of $98.7 million of goodwill as of September 30, 2017. The recorded goodwill was due to two separate business combinations during fiscal 2015 and two separate business combinations during the first quarter of fiscal 2017. The fiscal 2015 business combinations included $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015. The fiscal 2017 business combinations included $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016, and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The goodwill associated with these transactions are deductible for tax purposes.
 
The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2017 and 2016 are as follows:
 
 
September 30,
 
2017
 
2016
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
36,928

 
$
36,928

Acquisitions during the period
61,795

 
—

Write-offs during the period
—

 
—

Ending balance
$
98,723

 
$
36,928


The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2017. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed.
 
 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,947

 
46,397

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

 
—

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

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
10,990

 
$
2,480

 
$
57,810

 
$
10,502

 
$
81,782

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

 
$
—

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

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

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


 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
172

 
172

Amortization during the period
(290
)
 
(100
)
 
(4,221
)
 
(217
)
 
(4,828
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
5,490

 
$
300

 
$
26,040

 
$
3,539

 
$
35,369

Accumulated amortization
$
(341
)
 
$
(173
)
 
$
(5,450
)
 
$
(484
)
 
$
(6,448
)
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921


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

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

The weighted-average amortization period, by major intangible asset class and in total, for each of the acquisitions during fiscal year 2017 were as follows:
 
Weighted Average Amortization Period
Intangible
EPS
 
SCS
Trademark
15.0
 
5.0
Non-Compete
3.0
 
4.1
Customer Relationships
20.0
 
9.1
Technology/Other
3.0
 
15.0
Total
16.1
 
10.2

The anticipated future amortization of intangibles is as follows:
 
September 30,
 
(Dollars in Thousands)
2018
$
7,706

2019
7,147

2020
5,749

2021
5,179

2022
4,257

Thereafter
22,140

Total anticipated intangible amortization
$
52,178
v3.8.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

On October 11, 2017, the Company completed the purchase of a $73 million, seasoned, floating rate, private student loan portfolio. All loans are indexed to one-month LIBOR. The portfolio is serviced by ReliaMax Lending Services LLC and insured by ReliaMax Surety Company. This portfolio purchase builds on the Company's existing student loan platform.
v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION
 
The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in financial technology companies. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities.  The Trust is not included in the consolidated financial statements of the Company.  All significant intercompany balances and transactions have been eliminated.
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
 
The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services.  Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans.  The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis through its MPS and tax services divisions.  The Company operates in the banking industry, which accounts for the majority of its revenues and assets.  The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
 
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments.  These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
 
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions.  The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days.  The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank ("FRB"), based on a percentage of deposits.  The total of those reserve balances was $1.5 million at September 30, 2017, and there were no such reserve balances at September 30, 2016.  The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions.  At September 30, 2017, the Company had no interest-bearing deposits held at the FHLB and $1.23 billion in interest-bearing deposits held at the FRB.  At September 30, 2017, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
SECURITIES
 
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial did not hold trading securities at September 30, 2017.

The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.
 
The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
 
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2017, 2016 and 2015, there was no other-than-temporary impairment recorded.
LOANS RECEIVABLE
LOANS RECEIVABLE
 
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans.
 
Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued.  Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status.
 
Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method.
 
    
As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.
 
The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

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

Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until six months of good payment history. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status, but are instead written off when the collection of principal and interest becomes doubtful.
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
 
The Company, from time to time, sells loan participations, generally without recourse.  Sold loans are not included in the consolidated financial statements.  The Bank generally retains the right to service the sold loans for a fee.  At September 30, 2017 and 2016, the Bank was servicing loans for others with aggregate unpaid principal balances of $21.8 million and $19.4 million, respectively.
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES
 
The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.  The allowance consists of specific, general and unallocated components.
 
The specific component relates to impaired loans.  Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Often this is associated with a delay or shortfall in payments of 90 days or more for retail bank loans categories.  Non-accrual loans and all TDRs are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.


The general reserve covers retail bank loans not considered impaired and is determined based upon both quantitative and qualitative analysis.  A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans.  The three main assumptions for the quantitative components for 2017 and 2016 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

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

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

•
The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off.  The LEP is only applied to the non-classified loan general reserve.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment.
 
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

The other loan portfolios primarily utilize a general reserve process that primarily uses historical factors related to the specific loan portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for premium finance loans, 180 days for tax and other specialty lending loans and 90 days for other loans.
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 
Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis.  Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses.  Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs.
INCOME TAXES
INCOME TAXES
 
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination.  For tax positions not meeting the more likely than not test, no tax benefit is recorded.  The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
PREMISES, FURNITURE, AND EQUIPMENT
PREMISES, FURNITURE AND EQUIPMENT
 
Land is carried at cost.  Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization.  Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization.  We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
BANK-OWNED LIFE INSURANCE
BANK-OWNED LIFE INSURANCE
 
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
 
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2017 and 2016, all shares in the ESOP were allocated.
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
 
The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements.
GOODWILL
GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment. The Company performs its impairment evaluation as of September 30 of each fiscal year. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the consolidated financial statements. No goodwill impairment was recognized during the years ended September 30, 2017, 2016 or 2015.
INTANGIBLE ASSETS
INTANGIBLE ASSETS
 
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment.
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 
The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security.  Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction.  Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability.  The securities underlying the agreements remain in the asset accounts of the Company.
REVENUE RECOGNITION
REVENUE RECOGNITION
 
Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment.  Income from service and other customer charges is recognized as earned.  Revenue within the Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs.
EARNINGS PER COMMON SHARE ("EPS")
EARNINGS PER COMMON SHARE (“EPS”)
 
Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities.
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)
 
Comprehensive income (loss) consists of net income and other comprehensive income or loss.  Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
STOCK COMPENSATION
STOCK COMPENSATION
 
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. 
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company is currently undertaking a data analysis and ensuring its systems are capturing data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018.
    
ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the consolidated financial statements to be minimal.
 
ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company has finalized their initial assessment of the ASU and expects that the standard will be immaterial to the consolidated financial statements with the Company's current leases.

ASU No. 2014-9, 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 all income streams, including different prepaid card programs so as to ascertain how breakage will be recognized under the standard.

 ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company has determined that this update will not have an impact on the consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company early adopted the standard in the Company's third quarter of fiscal year 2017. Under the new standard, excess tax benefits and deficiencies related to employee stock-based compensation will be recognized directly within income tax expense or benefit in the consolidated statement of operations, rather than within additional paid-in capital. Additionally, as permitted under the new standard, the Company made an accounting policy election to account for forfeitures of awards as they occur, which represents a change from the current requirement to estimate forfeitures when recognizing compensation expense. The impact of applying that guidance reduced reported income tax expense by $0.5 million for the quarter ended June 30, 2017. All income tax-related cash flows resulting from share-based payments are reported as an operating activity in the consolidated statements of cash flows. The Company elected to adopt the change in cash flow classification on a prospective basis, which resulted in an increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statement of cash flows.
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the consolidated financial statements.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company is currently assessing the potential impact of early adoption for reclassification of certain prepayable debt securities from HTM to AFS.
v3.8.0.1
ACQUISITIONS (Tables)
 12 Months Ended
Sep. 30, 2017
EPS Financial, LLC [Member]  
Business Acquisition [Line Items]  
Approximate Fair Value of Assets Acquired and Liabilities Assumed
The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated balance sheet as of November 1, 2016:
 
 
As of November 1, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
21,877

Stock issued
26,507

Total consideration paid
48,384

 
 

Fair value of assets acquired
 
Intangible assets
17,930

Other assets
79

Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375
Specialty Consumer Services [Member]  
Business Acquisition [Line Items]  
Approximate Fair Value of Assets Acquired and Liabilities Assumed
 
As of December 14, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
7,548

Stock issued
10,789

Paid Consideration
18,337

Contingent consideration - cash
17,252

Contingent consideration - equity
24,142

Contingent consideration payable
41,394

    Total consideration paid
59,731

 
 

Fair value of assets acquired
 

Intangible assets
28,310

Other assets
2

Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
$
31,419
v3.8.0.1
LOANS RECEIVABLE, NET (Tables)
 12 Months Ended
Sep. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Year-end loans receivable were as follows:
 
September 30, 2017
 
September 30, 2016
 
(Dollars in Thousands)
   1-4 Family Real Estate
$
196,706

 
$
162,298

   Commercial and Multi-Family Real Estate
585,510

 
422,932

   Agricultural Real Estate
61,800

 
63,612

   Consumer
163,004

 
37,094

   Commercial Operating
35,759

 
31,271

   Agricultural Operating
33,594

 
37,083

   Premium Finance
250,459

 
171,604

Total Loans Receivable
1,326,832

 
925,894

 
 
 
 
Allowance for Loan Losses
(7,534
)
 
(5,635
)
Net Deferred Loan Origination Fees
(1,461
)
 
(789
)
Total Loans Receivable, Net
$
1,317,837

 
$
919,470
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Annual activity in the allowance for loan losses was as follows:
 
Year ended September 30,
2017

 
2016

 
2015

 
(Dollars in Thousands)
Beginning balance
$
5,635

 
$
6,255

 
$
5,397

Provision for loan losses
10,589

 
4,605

 
1,465

Recoveries
307

 
147

 
123

Charge offs
(8,997
)
 
(5,372
)
 
(730
)
Ending balance
$
7,534

 
$
5,635

 
$
6,255


Allowance for Loan Losses and Recorded Investment in loans at September 30, 2017 and 2016 were as follows:
 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

Provision (recovery) for loan losses
149

 
610

 
1,248

 
6,830

 
1,165

 
(160
)
 
773

 
(26
)
 
10,589

Charge offs
—

 
(138
)
 
—

 
(7,084
)
 
(1,149
)
 
—

 
(626
)
 
—

 
(8,997
)
Recoveries
—

 
—

 
—

 
209

 
25

 
12

 
61

 
—

 
307

Ending balance
$
803

 
$
2,670

 
$
1,390

 
$
6

 
$
158

 
$
1,184

 
$
796

 
$
527

 
$
7,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance: collectively evaluated for impairment
803

 
2,670

 
1,390

 
6

 
158

 
1,184

 
796

 
527

 
7,534

Total
$
803

 
$
2,670

 
$
1,390

 
$
6

 
$
158

 
$
1,184

 
$
796

 
$
527

 
$
7,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
72

 
1,109

 
—

 
—

 
—

 
—

 
—

 
—

 
1,181

Ending balance: collectively evaluated for impairment
196,634

 
584,401

 
61,800

 
163,004

 
35,759

 
33,594

 
250,459

 
—

 
1,325,651

Total
$
196,706

 
$
585,510

 
$
61,800

 
$
163,004

 
$
35,759

 
$
33,594

 
$
250,459

 
$
—

 
$
1,326,832

 
 
1-4 Family
Real
Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan losses
408

 
1,369

 
(21
)
 
748

 
338

 
1,045

 
914

 
(196
)
 
4,605

Charge offs
(32
)
 
(385
)
 
—

 
(728
)
 
(249
)
 
(3,252
)
 
(726
)
 
—

 
(5,372
)
Recoveries
—

 
27

 
—

 
11

 
—

 
2

 
107

 
—

 
147

Ending balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
10

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10

Ending balance: collectively evaluated for impairment
644

 
2,198

 
142

 
51

 
117

 
1,332

 
588

 
553

 
5,625

Total
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
162

 
433

 
—

 
—

 
—

 
—

 
—

 
—

 
595

Ending balance: collectively evaluated for impairment
162,136

 
422,499

 
63,612

 
37,094

 
31,271

 
37,083

 
171,604

 
—

 
925,299

Total
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
—

 
$
925,894
Asset Classification of Loans
The asset classification of loans at September 30, 2017, and 2016, were as follows:
 
September 30, 2017
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
$
195,838

 
$
574,730

 
$
27,376

 
$
163,004

 
$
35,759

 
$
18,394

 
$
250,459

 
$
1,265,560

Watch
525

 
10,200

 
2,006

 
—

 
—

 
4,541

 
—

 
17,272

Special Mention
247

 
201

 
2,939

 
—

 
—

 
—

 
—

 
3,387

Substandard
96

 
379

 
29,479

 
—

 
—

 
10,659

 
—

 
40,613

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
196,706

 
$
585,510

 
$
61,800

 
$
163,004

 
$
35,759

 
$
33,594

 
$
250,459

 
$
1,326,832


September 30, 2016
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
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894
Past Due Loans
Past due loans at September 30, 2017 and 2016 were as follows:
September 30, 2017
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
$
370

 
$
79

 
$
—

 
$
449

 
$
196,257

 
$
—

 
$
196,706

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
584,825

 
685

 
585,510

Agricultural Real Estate
—

 
—

 
34,198

 
34,198

 
27,602

 
—

 
61,800

Consumer
2,512

 
558

 
1,406

 
4,476

 
158,528

 
—

 
163,004

Commercial Operating
—

 
—

 
—

 
—

 
35,759

 
—

 
35,759

Agricultural Operating
—

 
—

 
97

 
97

 
33,497

 
—

 
33,594

Premium Finance
1,509

 
2,442

 
1,205

 
5,156

 
245,303

 
—

 
250,459

Total
$
4,391

 
$
3,079

 
$
36,906

 
$
44,376

 
$
1,281,771

 
$
685

 
$
1,326,832

September 30, 2016
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
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894
Impaired Loans
Impaired loans at September 30, 2017 and 2016 were as follows:
 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2017
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
72

 
$
72

 
$
—

Commercial and Multi-Family Real Estate
1,109

 
1,109

 
—

      Total
$
1,181

 
$
1,181

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

      Total
$
—

 
$
—

 
$
—


 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2016
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
84

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

Total
$
78

 
$
78

 
$
10


Cash interest collected on impaired loans was not material during the years ended September 30, 2017 and 2016.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2017 and 2016.
 
 
Year Ended September 30,
 
2017
 
2016
 
Average
Recorded
Investment
 
Average
Recorded
Investment
1-4 Family Real Estate
$
176

 
$
144

Commercial and Multi-Family Real Estate
883

 
1,117

Agricultural Real Estate
146

 
—

Commercial Operating
202

 
6

Agricultural Operating
268

 
2,919

Total
$
1,675

 
$
4,186
v3.8.0.1
LOAN SERVICING (Tables)
 12 Months Ended
Sep. 30, 2017
Transfers and Servicing [Abstract]  
Unpaid Principal Balances of Loans Serviced for Others
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at year-end were as follows:
 
September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
3,162

 
$
3,980

 
$
5,055

Other
18,649

 
15,452

 
17,156

 
$
21,811

 
$
19,432

 
$
22,211
v3.8.0.1
EARNINGS PER COMMON SHARE (Tables)
 12 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2017, 2016 and 2015 is presented below.
 
 
2017
 
2016 (1)
 
2015
 
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
44,917

 
$
33,220

 
$
18,055

Weighted average common shares outstanding
9,247,092

 
8,443,956

 
6,730,086

Basic income per common share
$
4.86

 
$
3.93

 
$
2.68

 
 
 
 
 
 
Diluted income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
44,917

 
$
33,220

 
$
18,055

Weighted average common shares outstanding
9,247,092

 
8,443,956

 
6,730,086

     Outstanding options - based upon the two-class method
55,652

 
53,390

 
61,499

Weighted average diluted common shares outstanding
9,302,744

 
8,497,346

 
6,791,585

Diluted income per common share
$
4.83

 
$
3.91

 
$
2.66
v3.8.0.1
SECURITIES (Tables)
 12 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
Securities available for sale at September 30, 2017 and 2016 were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
825

 
—

 
57,871

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

 
14,983

 
(3,037
)
 
950,829

Asset-backed securities
94,451

 
2,381

 
—

 
96,832

Mortgage-backed securities
588,918

 
1,259

 
(3,723
)
 
586,454

Total debt securities
1,679,298

 
19,448

 
(6,760
)
 
1,691,986

Common equities and mutual funds
1,009

 
436

 
—

 
1,445

Total available for sale securities
$
1,680,307

 
$
19,884

 
$
(6,760
)
 
$
1,693,431


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
14,935

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

Non-bank qualified obligations of states and political subdivisions
668,628

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249
Securities Held to Maturity
Securities held to maturity at September 30, 2017 and 2016 were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
157

 
$
(36
)
 
$
19,368

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

 
4,744

 
(2,976
)
 
432,361

Mortgage-backed securities
113,689

 
—

 
(1,233
)
 
112,456

Total held to maturity securities
$
563,529

 
$
4,901

 
$
(4,245
)
 
$
564,185


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
20,626

 
$
355

 
$
(44
)
 
$
20,937

Non-bank qualified obligations of states and political subdivisions
465,469

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574
Trust Preferred Securities Included in Available-for-sale Securities
Included in securities available for sale are trust preferred securities as follows:
 
At September 30, 2016
 
 
 
 
 
 
 
 
     
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

 
$
4,189

 
$
(798
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
4,981

 
4,077

 
(904
)
 
BB
 
Baa2
PNC Capital Trust
4,968

 
4,712

 
(256
)
 
BBB-
 
Baa1
Total
$
14,936

 
$
12,978

 
$
(1,958
)
 
 
 
  

(1) Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2017, and 2016, were as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
280,900

 
(2,887
)
 
5,853

 
(150
)
 
286,753

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

 
(1,625
)
 
100,287

 
(2,098
)
 
338,184

 
(3,723
)
Total debt securities
518,797

 
(4,512
)
 
106,140

 
(2,248
)
 
624,937

 
(6,760
)
Total available for sale securities
$
518,797

 
$
(4,512
)
 
$
106,140

 
$
(2,248
)
 
$
624,937

 
$
(6,760
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

 
$
(1,957
)
Non-bank qualified obligations of states and political subdivisions
8,481

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

 
(3
)
Total available for sale securities
$
151,949

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
1,364

 
$
(6
)
 
$
4,089

 
$
(30
)
 
$
5,453

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

 
(2,783
)
 
6,206

 
(193
)
 
208,224

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

 
(1,233
)
 
—

 
—

 
112,456

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

 
$
(4,022
)
 
$
10,295

 
$
(223
)
 
$
326,133

 
$
(4,245
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
2,909

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

 
$
(44
)
Non-bank qualified obligations of states and political subdivisions
1,294

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

 
(31
)
Total held to maturity securities
$
24,264

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
—

Due after one year through five years
36,586

 
37,674

Due after five years through ten years
347,831

 
358,198

Due after ten years
705,963

 
709,660

 
1,090,380

 
1,105,532

Mortgage-backed securities
588,918

 
586,454

Common equities and mutual funds
1,009

 
1,445

Total available for sale securities
$
1,680,307

 
$
1,693,431

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
1,480

Due after one year through five years
17,926

 
18,160

Due after five years through ten years
144,996

 
147,832

Due after ten years
285,435

 
284,257

 
449,840

 
451,729

Mortgage-backed securities
113,689

 
112,456

Total held to maturity securities
$
563,529

 
$
564,185


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
472

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574
Summary of Activities Related to Sale of Securities Available for Sale
Activities related to the sale of securities are summarized below.
 
 
2017
 
2016
 
2015
September 30,
(Dollars in Thousands)
Available For Sale
 
 
 
 
 
   Proceeds from sales
$
457,306

 
$
285,508

 
$
566,371

   Gross gains on sales
4,091

 
1,459

 
2,753

   Gross losses on sales
4,628

 
1,785

 
4,387

 Net (loss) on available for sale securities
(537
)
 
(326
)
 
(1,634
)
 
 
 
 
 
 
Held To Maturity
 
 
 
 
 
   Net carrying amount of securities sold
$
5,826

 
$
—

 
$
—

   Gross realized gain on sales
92

 
—

 
—

   Gross realized losses on sales
48

 
—

 
—

Net gain on held to maturity securities
44

 
—

 
—
v3.8.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2017
Property, Plant and Equipment [Abstract]  
Summary of Year-End Premises and Equipment
Year-end premises and equipment were as follows:
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
Land
$
1,578

 
$
1,578

Buildings
10,642

 
10,482

Furniture, fixtures, and equipment
46,934

 
41,756

Capitalized leases
2,259

 
2,259

 
61,413

 
56,075

Less: accumulated depreciation and amortization
(42,093
)
 
(37,449
)
Net book value
$
19,320

 
$
18,626
v3.8.0.1
TIME CERTIFICATES OF DEPOSITS (Tables)
 12 Months Ended
Sep. 30, 2017
Deposits [Abstract]  
Scheduled Maturities of Time Certificates of Deposits
At September 30, 2017, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2018
$
560,825

2019
10,943

2020
5,158

2021
2,412

2022
2,227

Thereafter
—

Total Certificates (1)
$
581,565
v3.8.0.1
SHORT TERM AND LONG TERM DEBT (Tables)
 12 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Short Term Debt
September 30,
2017
 
2016
 
 
 
 
Overnight federal funds purchased
$
987,000

 
$
992,000

Short-term FHLB advances
415,000

 
100,000

Short-term capital lease
62

 
79

Repurchase agreements
2,472

 
3,039

     Total
1,404,534

 
1,095,118
Schedule of Repurchase Agreements
An analysis of securities sold under agreements to repurchase at September 30, 2017 and 2016 follows:

September 30,
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,782

 
$
3,468

Average balance
2,225

 
2,179

Weighted average interest rate for the year
0.98
%
 
0.60
%
Weighted average interest rate at year end
1.59
%
 
0.61
%
Schedule of Long-term Debt
Long Term Debt
September 30,
2017
 
2016
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
—

 
$
7,000

Trust preferred securities
10,310

 
10,310

Subordinated debentures (net of issuance costs)
73,347

 
73,211

Long-term capital lease
1,876

 
1,939

     Total
85,533

 
92,460
Scheduled maturities of FHLB advances
scheduled maturities of the Company's long-term debt were as follows for the years ending:
September 30,
 
 
 
 
(Dollars in Thousands)
Trust preferred securities
Subordinated debentures
Long-term capital lease
Total
2018
$
—

$
—

$
—

$
—

2019
—

—

65

65

2020
—

—

72

72

2021
—

—

77

77

2022
—

—

82

82

Thereafter
10,310

73,347

1,580

85,237

Total long-term debt
$
10,310

$
73,347

$
1,876

$
85,533
v3.8.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables)
 12 Months Ended
Sep. 30, 2017
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
Year-End ESOP Shares
Year-end ESOP shares are as follows:
 
At September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
256,219

 
262,872

 
256,283

Unearned shares
—

 
—

 
—

Total ESOP shares
256,219

 
262,872

 
256,283

Fair value of unearned shares
$
—

 
$
—

 
$
—
v3.8.0.1
SHARE BASED COMPENSATION PLANS (Tables)
 12 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2017, 2017 and 2016.
 
Year Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively
$
6,486

 
$
559

 
$
334
Activity of Options
September 30, 2017 and 2016.
 
 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

Granted
—

 
—

 
—

 
—

Exercised
(29,386
)
 
33.38

 
—

 
1,790

Forfeited or expired
(20,417
)
 
26.25

 
—

 
1,464

Options outstanding, September 30, 2017
75,757

 
$
22.62

 
2.28

 
$
4,225

 
 
 
 
 
 
 
 
Options exercisable end of year
75,757

 
$
22.62

 
2.28

 
$
4,225


 
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
(63,528
)
 
25.77

 
—

 
1,510

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

 
 
 
 
 
 
 
 
Options exercisable end of year
125,560

 
$
25.73

 
2.68

 
$
4,379
Activity of Nonvested (Restricted) Shares
 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37

Granted
316,604

 
87.49

Vested
(29,135
)
 
64.22

Forfeited or expired
(3,599
)
 
56.39

Nonvested shares outstanding, September 30, 2017
304,526

 
$
86.96


 
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
8,154

 
42.49

Vested
(33,666
)
 
40.93

Forfeited or expired
2,166

 
46.98

Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37
v3.8.0.1
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following:
 
Years ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
12,153

 
$
4,410

 
$
4,217

Deferred
(5,040
)
 
(440
)
 
(3,896
)
 
7,113

 
3,970

 
321

 
 
 
 
 
 
State:
 

 
 

 
 

Current
4,366

 
1,422

 
1,048

Deferred
(1,246
)
 
210

 
(1
)
 
3,120

 
1,632

 
1,047

 
 
 
 
 
 
Income tax expense
$
10,233

 
$
5,602

 
$
1,368
Reconciliation of Total Income Tax Expense
Total income tax expense differs from the statutory federal income tax rate as follows:
 
Years ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
 
 
Income tax expense at federal tax rate
$
19,303

 
$
13,588

 
$
6,798

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes net of federal benefit
2,014

 
933

 
692

Nontaxable buildup in cash surrender value
(776
)
 
(580
)
 
(711
)
Stock based compensation
(593
)
 
(66
)
 
(37
)
Tax exempt income
(9,991
)
 
(8,257
)
 
(5,230
)
Nondeductible expenses
316

 
196

 
188

Other, net
(40
)
 
(212
)
 
(332
)
Total income tax expense
$
10,233

 
$
5,602

 
$
1,368
Components of Net Deferred Tax Asset (Liability)
The components of the net deferred tax asset (liability) at September 30, 2017 and 2016 were:
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
2,832

 
$
2,044

Deferred compensation
1,548

 
1,345

Stock based compensation
3,436

 
265

Operational reserve
645

 
540

AMT Credit
1,869

 
5,563

Intangibles
5,235

 
393

Indirect tax benefits of unrecognized tax positions
266

 
216

Other assets
1,933

 
1,362

 
17,764

 
11,728

 
 
 
 
Deferred tax liabilities:
 

 
 

FHLB stock dividend
(425
)
 
(411
)
Premises and equipment
(1,789
)
 
(1,913
)
Patents
(842
)
 
(988
)
Prepaid expenses
(673
)
 
(668
)
Net unrealized gains on securities available for sale
(4,934
)
 
(12,348
)
 
(8,663
)
 
(16,328
)
 
 
 
 
Net deferred tax assets (liabilities)
$
9,101

 
$
(4,600
)
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2017, and 2016 follows:
 
September 30,
2017

 
2016

 
(Dollars in Thousands)
Balance at beginning of year
$
525

 
$
974

Additions for tax positions related to the current year
192

 
63

Additions for tax positions related to the prior years
31

 
—

Reductions for tax positions due to settlement with taxing authorities
—

 
(372
)
Reductions for tax positions related to prior years
(103
)
 
(140
)
Balance at end of year
$
645

 
$
525
v3.8.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)
 12 Months Ended
Sep. 30, 2017
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
Bank's Actual and Required Capital Amount and Ratios
The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.

 
Company
 
Bank
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
7.64
%
 
9.64
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
13.97

 
18.22

 
4.50

 
6.50

Tier 1 capital ratio
14.46

 
18.22

 
6.00

 
8.00

Total qualifying capital ratio
18.41

 
18.59

 
8.00

 
10.00

 
 
 
 
 
 
 
 
September 30, 2016
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.35
%
 
10.35
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
17.28

 
21.95

 
4.50

 
6.50

Tier 1 capital ratio
17.82

 
21.95

 
6.00

 
8.00

Total qualifying capital ratio
23.17

 
22.35

 
8.00

 
10.00
Reconciliation of Required Capital Amount and Ratios
The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach (1)
September 30, 2017
 
(Dollars in Thousands)
 
 
Total equity
$
434,496

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
95,332

LESS: Certain other intangible assets
41,743

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
1,495

LESS: Net unrealized gains (losses) on available-for-sale securities
9,166

Common Equity Tier 1 (1)
286,760

Long-term debt and other instruments qualifying as Tier 1
10,310

LESS: Additional tier 1 capital deductions
374

Total Tier 1 capital
296,696

Allowance for loan losses
7,718

Subordinated debentures (net of issuance costs)
73,347

Total qualifying capital
377,761


(1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio.  Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021.  The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015.
v3.8.0.1
LEASE COMMITMENTS (Tables)
 12 Months Ended
Sep. 30, 2017
Leases [Abstract]  
Total Minimum Rental Commitment for Operating and Capital Leases
The following table shows the total minimum rental commitment for our operating and capital leases for each of the years presented below as of September 30, 2017.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2018
$
2,486

 
$
179

2019
2,287

 
179

2020
2,289

 
182

2021
2,143

 
182

2022
1,882

 
182

Thereafter
17,922

 
2,240

Total Leases Commitments
$
29,009

 
$
3,144

 
 
 
 
Amounts representing interest
 

 
$
1,206

Present value of net minimum lease payments
 

 
1,938
v3.8.0.1
SEGMENT REPORTING (Tables)
 12 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Information of Entity
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2017
 
 
 
 
 
 
 
Interest income
$
13,845

 
$
52,231

 
$
42,027

 
$
108,103

Interest expense
503

 
2,723

 
11,647

 
14,873

Net interest income
13,342

 
49,508

 
30,380

 
93,230

Provision for loan losses
7,613

 
2,976

 
—

 
10,589

Non-interest income
165,707

 
4,685

 
1,780

 
172,172

Non-interest expense
132,984

 
24,520

 
42,159

 
199,663

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

 
26,697

 
(9,999
)
 
55,150

 
 
 
 
 
 
 
 
Total assets
185,521

 
1,343,968

 
3,698,843

 
5,228,332

Total goodwill
87,145

 
11,578

 
—

 
98,723

Total deposits
2,436,893

 
229,969

 
556,562

 
3,223,424

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

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income
9,530

 
36,990

 
30,785

 
77,305

Provision for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
77,411

 
23,001

 
34,236

 
134,648

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

 
14,635

 
(2,222
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
87,311

 
946,420

 
2,972,688

 
4,006,419

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2015
 
 
 
 
 
 
 
Interest income
$
7,261

 
$
31,394

 
$
22,952

 
$
61,607

Interest expense
169

 
1,377

 
841

 
2,387

Net interest income
7,092

 
30,017

 
22,111

 
59,220

Provision for loan losses
—

 
689

 
776

 
1,465

Non-interest income
54,417

 
3,358

 
399

 
58,174

Non-interest expense
47,731

 
19,028

 
29,747

 
96,506

Income (loss) before income tax expense (benefit)
13,778

 
13,658

 
(8,013
)
 
19,423

 
 
 
 
 
 
 
 
Total assets
93,336

 
724,834

 
1,711,535

 
2,529,705

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
1,424,304

 
233,235

 
(5
)
 
1,657,534
v3.8.0.1
PARENT COMPANY FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Statements of Financial Condition
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2017
 
2016
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
14,569

 
$
15,716

Investment in subsidiaries
521,021

 
403,574

Other assets
406

 
413

Total assets
$
535,996

 
$
419,703

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
83,657

 
$
83,521

Other liabilities
17,843

 
1,207

Total liabilities
$
101,500

 
$
84,728

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
96

 
$
85

Additional paid-in capital
258,336

 
184,780

Retained earnings
167,164

 
127,190

Accumulated other comprehensive income
9,166

 
22,920

Treasury stock, at cost
(266
)
 
—

Total stockholders' equity
$
434,496

 
$
334,975

Total liabilities and stockholders' equity
$
535,996

 
$
419,703
Condensed Statements of Operations
CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
Interest expense
$
4,959

 
$
1,022

 
$
418

Other expense
440

 
382

 
269

Total expense
5,399

 
1,404

 
687

 
 
 
 
 
 
Gain (loss) before income taxes and equity in undistributed net income of subsidiaries
(5,399
)
 
(1,404
)
 
(687
)
 
 
 
 
 
 
Income tax (benefit)
(1,935
)
 
(519
)
 
(324
)
 
 
 
 
 
 
Gain (loss) before equity in undistributed net income of subsidiaries
(3,464
)
 
(885
)
 
(363
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
48,381

 
34,105

 
18,418

 
 
 
 
 
 
Net income
$
44,917

 
$
33,220

 
$
18,055
Condensed Statements of Cash Flows
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended September 30,
2017
 
2016
 
2015
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
44,917

 
$
33,220

 
$
18,055

Adjustments to reconcile net income to net cash provided by (used in) operating activities
 

 
 

 
 

Depreciation, amortization and accretion, net
136

 
(22
)
 
—

Equity in undistributed net income of subsidiaries
(48,381
)
 
(34,105
)
 
(18,418
)
Stock compensation
10,401

 
427

 
253

Change in other assets
7

 
(5
)
 
(15
)
Change in other liabilities
16,636

 
541

 
378

Net cash provided by (used in) operating activities
23,716

 
56

 
253

 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 

 
 

 
 

Capital contributions to subsidiaries
(82,820
)
 
(81,000
)
 
(67,600
)
Net cash used in investing activities
(82,820
)
 
(81,000
)
 
(67,600
)
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

 
 

Cash dividends paid
(4,839
)
 
(4,389
)
 
(3,493
)
Purchase of shares by ESOP
1,174

 
—

 
—

Proceeds from contingent consideration - equity
24,142

 
—

 
—

Proceeds from exercise of stock options & issuance of common stock
650

 
13,536

 
75,681

Issuance of common shares due to acquisition
37,296

 
—

 
—

Issuance of restricted stock
4

 
—

 
—

Proceeds from long term debt
—

 
75,000

 
—

Payment of debt issuance costs
—

 
(1,767
)
 
—

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

 
—

Other, net
—

 
—

 
—

Net cash provided by financing activities
57,957

 
82,380

 
72,188

 
 
 
 
 
 
Net change in cash and cash equivalents
$
(1,147
)
 
$
1,436

 
$
4,841

 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 

 
 

 
 

Beginning of year
$
15,716

 
$
14,280

 
$
9,439

End of year
$
14,569

 
$
15,716

 
$
14,280
v3.8.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands)
Fiscal Year 2017
 
 
 
 
 
 
 
Interest income
$
22,575

 
$
27,718

 
$
28,861

 
$
28,949

Interest expense
2,742

 
3,752

 
3,918

 
4,461

Net interest income
19,833

 
23,966

 
24,943

 
24,488

Provision (recovery) for loan losses
843

 
8,649

 
1,240

 
(144
)
Net Income
1,244

 
32,142

 
9,787

 
1,744

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.14

 
$
3.44

 
$
1.05

 
$
0.19

Diluted
0.14

 
3.42

 
1.04

 
0.19

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2016
 

 
 

 
 

 
 

Interest income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision for loan losses
786

 
1,173

 
2,098

 
548

Net Income
4,058

 
14,283

 
8,873

 
6,006

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.49

 
$
1.68

 
$
1.04

 
$
0.70

Diluted
0.49

 
1.67

 
1.04

 
0.70

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2015
 

 
 

 
 

 
 

Interest income
$
14,232

 
$
15,758

 
$
15,254

 
$
16,363

Interest expense
661

 
473

 
593

 
660

Net interest income
13,571

 
15,285

 
14,661

 
15,703

Provision for loan losses
48

 
593

 
700

 
124

Net Income
3,595

 
5,181

 
4,640

 
4,639

Earnings per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.58

 
$
0.79

 
$
0.67

 
$
0.64

Diluted
0.58

 
0.78

 
0.66

 
0.63

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13
v3.8.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2017 and 2016.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
 
Fair Value At September 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
57,871

 
—

 
57,871

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,368

 
—

 
19,368

 
—

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

 
—

 
950,829

 
—

 
432,361

 
—

 
432,361

 
—

Asset-backed securities
96,832

 
—

 
96,832

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
586,454

 
—

 
586,454

 
—

 
112,456

 
—

 
112,456

 
—

Total debt securities
1,691,986

 
—

 
1,691,986

 
—

 
564,185

 
—

 
564,185

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,693,431

 
$
1,445

 
$
1,691,986

 
$
—

 
$
564,185

 
$
—

 
$
564,185

 
$
—


 
Fair Value At September 30, 2016
 
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
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

Non-bank qualified obligations of states and political subdivisions
698,672

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of September 30, 2017 and 2016.
 
 
Fair Value at September 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
Foreclosed Assets, net
292

 
—

 
—

 
292

Total
$
292

 
$
—

 
$
—

 
$
292


 
Fair Value At September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
68

 
$
—

 
$
—

 
$
68

Total
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
—

 
—

 
76

Total
$
144

 
$
—

 
$
—

 
$
144
Quantitative Information about Level 3 Fair Value Measurements
 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2017
 
Fair Value at
September 30, 2016
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans, net
$
—

 
$
68

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
292

 
76

 
Market approach
 
Appraised values (1)

(1) 
The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.
Carrying Amount and Estimated Fair Value of Financial Instruments
The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2017 and 2016.

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

 
$
1,267,586

 
$
1,267,586

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,693,431

 
1,693,431

 
1,445

 
1,691,986

 
—

Securities held to maturity
563,529

 
564,185

 
—

 
564,185

 
—

Total securities
2,256,960

 
2,257,616

 
1,445

 
2,256,171

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
196,706

 
196,970

 
—

 
—

 
196,970

Commercial and multi-family real estate loans
585,510

 
576,330

 
—

 
—

 
576,330

Agricultural real estate loans
61,800

 
61,584

 
—

 
—

 
61,584

Consumer loans
163,004

 
163,961

 
—

 
—

 
163,961

Commercial operating loans
35,759

 
35,723

 
—

 
—

 
35,723

Agricultural operating loans
33,594

 
32,870

 
—

 
—

 
32,870

Premium finance loans
250,459

 
250,964

 
—

 
—

 
250,964

Total loans receivable
1,326,832

 
1,318,402

 
—

 
—

 
1,318,402

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
61,123

 
61,123

 
—

 
61,123

 
—

Accrued interest receivable
19,380

 
19,380

 
19,380

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,454,057

 
2,454,057

 
2,454,057

 
—

 
—

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

 
169,557

 
169,557

 
—

 
—

Certificates of deposit
123,637

 
123,094

 
—

 
123,094

 
—

Wholesale non-maturing deposits
18,245

 
18,245

 
18,245

 
—

 
—

Wholesale certificates of deposits
457,928

 
457,509

 
—

 
457,509

 
—

Total deposits
3,223,424

 
3,222,462

 
2,641,859

 
580,603

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
415,000

 
415,003

 
—

 
415,003

 
—

Federal funds purchased
987,000

 
987,000

 
987,000

 
—

 
—

Securities sold under agreements to repurchase
2,472

 
2,472

 
—

 
2,472

 
—

Capital leases
1,938

 
1,938

 
—

 
1,938

 
—

Trust preferred securities
10,310

 
10,447

 
—

 
10,447

 
—

Subordinated debentures
73,347

 
76,500

 
—

 
76,500

 
—

Accrued interest payable
2,280

 
2,280

 
2,280

 
—

 
—

 
September 30, 2016
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
773,830

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

Interest bearing demand deposits, savings, and money markets
136,568

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital leases
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—
v3.8.0.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill and Intangible Assets
The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2017 and 2016 are as follows:
 
 
September 30,
 
2017
 
2016
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
36,928

 
$
36,928

Acquisitions during the period
61,795

 
—

Write-offs during the period
—

 
—

Ending balance
$
98,723

 
$
36,928


The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2017. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed.
 
 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,947

 
46,397

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

 
—

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

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
10,990

 
$
2,480

 
$
57,810

 
$
10,502

 
$
81,782

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

 
$
—

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

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

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


 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
172

 
172

Amortization during the period
(290
)
 
(100
)
 
(4,221
)
 
(217
)
 
(4,828
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
5,490

 
$
300

 
$
26,040

 
$
3,539

 
$
35,369

Accumulated amortization
$
(341
)
 
$
(173
)
 
$
(5,450
)
 
$
(484
)
 
$
(6,448
)
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921


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

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

The weighted-average amortization period, by major intangible asset class and in total, for each of the acquisitions during fiscal year 2017 were as follows:
 
Weighted Average Amortization Period
Intangible
EPS
 
SCS
Trademark
15.0
 
5.0
Non-Compete
3.0
 
4.1
Customer Relationships
20.0
 
9.1
Technology/Other
3.0
 
15.0
Total
16.1
 
10.2
Anticipated Future Amortization of Intangibles
The anticipated future amortization of intangibles is as follows:
 
September 30,
 
(Dollars in Thousands)
2018
$
7,706

2019
7,147

2020
5,749

2021
5,179

2022
4,257

Thereafter
22,140

Total anticipated intangible amortization
$
52,178
v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
$ / shares
Mar. 31, 2017
$ / shares
Dec. 31, 2016
$ / shares
Sep. 30, 2016
USD ($)
$ / shares
Jun. 30, 2016
$ / shares
Mar. 31, 2016
$ / shares
Dec. 31, 2015
$ / shares
Sep. 30, 2015
$ / shares
Jun. 30, 2015
$ / shares
Mar. 31, 2015
$ / shares
Dec. 31, 2014
$ / shares
Sep. 30, 2017
USD ($)
segment
$ / shares
Sep. 30, 2016
USD ($)
$ / shares
Sep. 30, 2015
USD ($)
$ / shares
PRINCIPLES OF CONSOLIDATION [Abstract]                              
Percentage of interest in subsidiary 100.00%                       100.00%    
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract]                              
Number of reporting segments | segment                         3    
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract]                              
Terms of FHLB advances                         90 days    
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) $ 1,500       $ 0               $ 1,500 $ 0  
SECURITIES [Abstract]                              
Recorded balance 0       78               0 78  
Other than temporary impairment                         $ 0 0 $ 0
LOANS RECEIVABLE [Abstract]                              
Period when loan becomes delinquent                         90 days    
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS [Abstract]                              
Aggregate unpaid balance of loans serviced for others $ 21,800       $ 19,400               $ 21,800 $ 19,400  
ALLOWANCE FOR LOAN LOSSES [Abstract]                              
Look back period                         7 years    
Property, Plant and Equipment [Line Items]                              
Basic (in dollars per share) | $ / shares $ 0.19 $ 1.05 $ 3.44 $ 0.14 $ 0.70 $ 1.04 $ 1.68 $ 0.49 $ 0.64 $ 0.67 $ 0.79 $ 0.58 $ 4.86 [1] $ 3.93 [1] $ 2.68 [1]
Diluted (in dollars per share) | $ / shares $ 0.19 $ 1.04 $ 3.42 $ 0.14 $ 0.70 $ 1.04 $ 1.67 $ 0.49 $ 0.63 $ 0.66 $ 0.78 $ 0.58 $ 4.83 [1] $ 3.91 [1] $ 2.66 [1]
Decrease in Loans Sold                         $ 4,720 $ 89 $ 5,462
Net change in loans receivable                         $ 274,840 217,985 146,111
Buildings [Member] | Minimum [Member]                              
Property, Plant and Equipment [Line Items]                              
Premises, furniture and equipment, estimated useful lives                         10 years    
Buildings [Member] | Maximum [Member]                              
Property, Plant and Equipment [Line Items]                              
Premises, furniture and equipment, estimated useful lives                         40 years    
Leasehold Improvements [Member] | Minimum [Member]                              
Property, Plant and Equipment [Line Items]                              
Premises, furniture and equipment, estimated useful lives                         2 years    
Leasehold Improvements [Member] | Maximum [Member]                              
Property, Plant and Equipment [Line Items]                              
Premises, furniture and equipment, estimated useful lives                         15 years    
Scenario, Previously Reported [Member]                              
Property, Plant and Equipment [Line Items]                              
Net change in loans receivable                           $ 217,807 $ 135,187
FRB [Member]                              
Investment Holdings [Line Items]                              
Interest bearing deposits $ 1,230,000                       $ 1,230,000    
FHLB [Member]                              
Investment Holdings [Line Items]                              
Interest bearing deposits $ 0                       $ 0    
Accounting Standards Update 2015-06 [Member]                              
Property, Plant and Equipment [Line Items]                              
Basic (in dollars per share) | $ / shares                           $ 3.93  
Diluted (in dollars per share) | $ / shares                           3.91  
Accounting Standards Update 2015-06 [Member] | Scenario, Previously Reported [Member]                              
Property, Plant and Equipment [Line Items]                              
Basic (in dollars per share) | $ / shares                           3.95  
Diluted (in dollars per share) | $ / shares                           $ 3.92  
[1] See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.
v3.8.0.1
ACQUISITIONS (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 14, 2016
USD ($)
shares
Nov. 01, 2016
USD ($)
franchise
shares
Jun. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Acquisition
Sep. 30, 2017
USD ($)
Sep. 30, 2015
USD ($)
Business Acquisition [Line Items]            
Number of acquisitions | Acquisition       2    
Fair value of consideration paid            
Contingent consideration - equity       $ 0 $ 24,142 $ 0
Fair value of assets acquired            
Goodwill resulting from acquisition       $ 36,928 $ 98,723 $ 36,928
Pre-tax transaction related expenses     $ 800      
EPS Financial, LLC [Member]            
Business Acquisition [Line Items]            
Number of ERO's | franchise   10,000        
Equity interest issued | shares   369,179        
Fair value of consideration paid            
Cash   $ 21,877        
Stock issued   26,507        
Total consideration paid   48,384        
Fair value of assets acquired            
Intangible assets   17,930        
Other assets   79        
Total assets   18,009        
Fair value of net assets acquired   18,009        
Goodwill resulting from acquisition   30,375        
Pre-tax transaction related expenses   $ 500        
Specialty Consumer Services [Member]            
Business Acquisition [Line Items]            
Equity interest issued | shares 113,328          
Fair value of consideration paid            
Cash $ 7,548          
Stock issued 10,789          
Paid Consideration 18,337          
Contingent consideration - cash 17,252          
Contingent consideration - equity 24,142          
Contingent consideration payable 41,394          
Total consideration paid 59,731          
Fair value of assets acquired            
Intangible assets 28,310          
Other assets 2          
Total assets 28,312          
Fair value of net assets acquired 28,312          
Goodwill resulting from acquisition $ 31,419          
Contingent consideration, performance target earnout payments (in shares) | shares 264,431          
Contingent consideration, performance target earnout payments, percent 100.00%          
Contingent consideration, performance target earnout payments $ 17,500          
v3.8.0.1
LOANS RECEIVABLE, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable $ 1,326,832 $ 925,894
Less:    
Allowance for Loan Losses (7,534) (5,635)
Net Deferred Loan Origination Fees (1,461) (789)
Total Loans Receivable, Net 1,317,837 919,470
1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 196,706 162,298
Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 585,510 422,932
Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 61,800 63,612
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 163,004 37,094
Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 35,759 31,271
Agricultural Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 33,594 37,083
Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable $ 250,459 $ 171,604
v3.8.0.1
LOANS RECEIVABLE, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2017
Sep. 30, 2016
Allowance for Credit Losses [Roll Forward]          
Beginning balance $ 5,635 $ 6,255 $ 5,397    
Provision (recovery) for loan losses (10,589) (4,605) (1,465)    
Recoveries 307 147 123    
Charge offs (8,997) (5,372) (730)    
Ending balance 7,534 5,635 6,255    
Ending balance: individually evaluated for impairment       $ 0 $ 10
Ending balance: collectively evaluated for impairment       7,534 5,625
Total 5,635 6,255 5,397 7,534 5,635
Loans:          
Ending balance: individually evaluated for impairment       1,181 595
Ending balance: collectively evaluated for impairment       1,325,651 925,299
Total loans receivable       1,326,832 925,894
1-4 Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 654 278      
Provision (recovery) for loan losses (149) (408)      
Recoveries 0 0      
Charge offs 0 (32)      
Ending balance 803 654 278    
Ending balance: individually evaluated for impairment       0 10
Ending balance: collectively evaluated for impairment       803 644
Total 654 278 278 803 654
Loans:          
Ending balance: individually evaluated for impairment       72 162
Ending balance: collectively evaluated for impairment       196,634 162,136
Total loans receivable       196,706 162,298
Commercial and Multi-Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 2,198 1,187      
Provision (recovery) for loan losses (610) (1,369)      
Recoveries 0 27      
Charge offs (138) (385)      
Ending balance 2,670 2,198 1,187    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       2,670 2,198
Total 2,198 1,187 1,187 2,670 2,198
Loans:          
Ending balance: individually evaluated for impairment       1,109 433
Ending balance: collectively evaluated for impairment       584,401 422,499
Total loans receivable       585,510 422,932
Agricultural Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 142 163      
Provision (recovery) for loan losses (1,248) 21      
Recoveries 0 0      
Charge offs 0 0      
Ending balance 1,390 142 163    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       1,390 142
Total 142 163 163 1,390 142
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       61,800 63,612
Total loans receivable       61,800 63,612
Consumer [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 51 20      
Provision (recovery) for loan losses (6,830) (748)      
Recoveries 209 11      
Charge offs (7,084) (728)      
Ending balance 6 51 20    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       6 51
Total 51 20 20 6 51
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       163,004 37,094
Total loans receivable       163,004 37,094
Commercial Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 117 28      
Provision (recovery) for loan losses (1,165) (338)      
Recoveries 25 0      
Charge offs (1,149) (249)      
Ending balance 158 117 28    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       158 117
Total 117 28 28 158 117
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       35,759 31,271
Total loans receivable       35,759 31,271
Agricultural Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 1,332 3,537      
Provision (recovery) for loan losses 160 (1,045)      
Recoveries 12 2      
Charge offs 0 (3,252)      
Ending balance 1,184 1,332 3,537    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       1,184 1,332
Total 1,332 3,537 3,537 1,184 1,332
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       33,594 37,083
Total loans receivable       33,594 37,083
Premium Finance [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 588 293      
Provision (recovery) for loan losses (773) (914)      
Recoveries 61 107      
Charge offs (626) (726)      
Ending balance 796 588 293    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       796 588
Total 588 293 293 796 588
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       250,459 171,604
Total loans receivable       250,459 171,604
Unallocated [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 553 749      
Provision (recovery) for loan losses 26 196      
Recoveries 0 0      
Charge offs 0 0      
Ending balance 527 553 749    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       527 553
Total $ 553 $ 749 $ 749 527 553
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       0 0
Total loans receivable       $ 0 $ 0
v3.8.0.1
LOANS RECEIVABLE, NET - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 1,326,832 $ 925,894
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,265,560 876,194
Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 17,272 8,015
Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 3,387 32,710
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 40,613 8,975
Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 196,706 162,298
1-4 Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 195,838 161,255
1-4 Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 525 200
1-4 Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 247 666
1-4 Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 96 177
1-4 Family Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 585,510 422,932
Commercial and Multi-Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 574,730 421,577
Commercial and Multi-Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 10,200 72
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 201 962
Commercial and Multi-Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 379 321
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Agricultural Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 61,800 63,612
Agricultural Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 27,376 34,421
Agricultural Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 2,006 2,934
Agricultural Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 2,939 25,675
Agricultural Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 29,479 582
Agricultural Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 163,004 37,094
Consumer [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 163,004 37,094
Consumer [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 35,759 31,271
Commercial Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 35,759 30,574
Commercial Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 184
Commercial Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 513
Commercial Operating [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Agricultural Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 33,594 37,083
Agricultural Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 18,394 19,669
Agricultural Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 4,541 4,625
Agricultural Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 5,407
Agricultural Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 10,659 7,382
Agricultural Operating [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 250,459 171,604
Premium Finance [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 250,459 171,604
Premium Finance [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 0 $ 0
v3.8.0.1
LOANS RECEIVABLE, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due $ 44,376 $ 3,226
Current 1,281,771 922,585
Non-accrual loans 685 83
Total loans receivable 1,326,832 925,894
30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 4,391 1,549
60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 3,079 659
Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 36,906 1,018
1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 449 30
Current 196,257 162,185
Non-accrual loans 0 83
Total loans receivable 196,706 162,298
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 370 0
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 79 30
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 584,825 422,932
Non-accrual loans 685 0
Total loans receivable 585,510 422,932
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 34,198 0
Current 27,602 63,612
Non-accrual loans 0 0
Total loans receivable 61,800 63,612
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 34,198 0
Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 4,476 53
Current 158,528 37,041
Non-accrual loans 0 0
Total loans receivable 163,004 37,094
Consumer [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 2,512 0
Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 558 0
Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,406 53
Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 505
Current 35,759 30,766
Non-accrual loans 0 0
Total loans receivable 35,759 31,271
Commercial Operating [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 151
Commercial Operating [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 354
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 97 0
Current 33,497 37,083
Non-accrual loans 0 0
Total loans receivable 33,594 37,083
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 97 0
Premium Finance [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 5,156 2,638
Current 245,303 168,966
Non-accrual loans 0 0
Total loans receivable 250,459 171,604
Premium Finance [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,509 1,398
Premium Finance [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 2,442 275
Premium Finance [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due $ 1,205 $ 965
v3.8.0.1
LOANS RECEIVABLE, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Loans without specific valuation allowance [Abstract]    
Recorded balance $ 1,181 $ 517
Unpaid principal balance 1,181 517
Loans with a specific valuation allowance [Abstract]    
Recorded balance 0 78
Unpaid principal balance 0 78
Specific allowance 0 10
Average recorded investment in impaired loans 1,675 4,186
1-4 Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 72 84
Unpaid principal balance 72 84
Loans with a specific valuation allowance [Abstract]    
Recorded balance   78
Unpaid principal balance   78
Specific allowance   10
Average recorded investment in impaired loans 176 144
Commercial and Multi-Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 1,109 433
Unpaid principal balance 1,109 433
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 883 1,117
Agricultural Real Estate [Member]    
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 146 0
Commercial Operating [Member]    
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 202 6
Agricultural Operating [Member]    
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans $ 268 $ 2,919
v3.8.0.1
LOANS RECEIVABLE, NET - Troubled Debt Restructured Loans (Details) - Contract
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]    
Loans modified in TDR 0 0
Loans modified in TDR, subsequent default 0 0
v3.8.0.1
LOANS RECEIVABLE, NET - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Purchased student loans   $ 134,000  
Commercial real estate loans secured by hotel properties $ 110,200   $ 65,400
Commercial real estate loans secured by multi-family properties 156,400   112,600
Non-accruing loans 685   83
Accruing loans delinquent 90 days or more 36,900   $ 1,000
Gross interest income 0    
Iowa and South Dakota [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Purchased student loans 123,700    
Iowa, North Dakota and South Dakota [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total purchased loans secured by properties $ 10,700    
v3.8.0.1
LOAN SERVICING (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Transfers and Servicing [Abstract]      
Mortgage loan portfolios serviced for Fannie Mae $ 3,162 $ 3,980 $ 5,055
Other 18,649 15,452 17,156
Total $ 21,811 $ 19,432 $ 22,211
v3.8.0.1
EARNINGS PER COMMON SHARE (Details) - USD ($)
 3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Basic income per common share:                              
Net Income $ 1,744,000 $ 9,787,000 $ 32,142,000 $ 1,244,000 $ 6,006,000 $ 8,873,000 $ 14,283,000 $ 4,058,000 $ 4,639,000 $ 4,640,000 $ 5,181,000 $ 3,595,000 $ 44,917,000 $ 33,220,000 $ 18,055,000
Weighted average common shares outstanding (in shares)                         $ 9,247,092 $ 8,443,956 $ 6,730,086
Basic income per common share (in dollars per share) $ 0.19 $ 1.05 $ 3.44 $ 0.14 $ 0.70 $ 1.04 $ 1.68 $ 0.49 $ 0.64 $ 0.67 $ 0.79 $ 0.58 $ 4.86 [1] $ 3.93 [1] $ 2.68 [1]
Diluted income per common share:                              
Net income $ 1,744,000 $ 9,787,000 $ 32,142,000 $ 1,244,000 $ 6,006,000 $ 8,873,000 $ 14,283,000 $ 4,058,000 $ 4,639,000 $ 4,640,000 $ 5,181,000 $ 3,595,000 $ 44,917,000 $ 33,220,000 $ 18,055,000
Weighted average common shares outstanding (in shares)                         9,247,092 8,443,956 6,730,086
Outstanding options - based upon the two-class method (in shares)                         $ 55,652 $ 53,390 $ 61,499
Weighted average diluted common shares outstanding (in shares)                         9,302,744 8,497,346 6,791,585
Diluted (in dollars per share) $ 0.19 $ 1.04 $ 3.42 $ 0.14 $ 0.70 $ 1.04 $ 1.67 $ 0.49 $ 0.63 $ 0.66 $ 0.78 $ 0.58 $ 4.83 [1] $ 3.91 [1] $ 2.66 [1]
Stock Options [Member]                              
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                              
Securities excluded from computing diluted EPS (in shares)                             28,891
Accounting Standards Update 2015-06 [Member]                              
Basic income per common share:                              
Basic income per common share (in dollars per share)                           3.93  
Diluted income per common share:                              
Diluted (in dollars per share)                           3.91  
Scenario, Previously Reported [Member] | Accounting Standards Update 2015-06 [Member]                              
Basic income per common share:                              
Basic income per common share (in dollars per share)                           3.95  
Diluted income per common share:                              
Diluted (in dollars per share)                           $ 3.92  
[1] See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.
v3.8.0.1
SECURITIES (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Available-for-sale debt securities [Abstract]    
Mortgage-back securities $ 586,454 $ 558,940
Available-for-sale equity securities [Abstract]    
Fair value 1,106,977 910,309
Available-for-sale securities [Abstract]    
Amortized cost 1,680,307 1,435,272
Gross unrealized gains 19,884 37,257
Gross unrealized (losses) (6,760) (3,280)
Total securities 1,693,431 1,469,249
Amortized Cost 1,680,307 1,435,272
Fair Value 1,693,431 1,469,249
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 518,797 151,949
OVER 12 MONTHS, Fair Value 106,140 52,770
TOTAL, Fair Value 624,937 204,719
LESS THAN 12 MONTHS, Unrealized (Losses) (4,512) (1,033)
OVER 12 MONTHS, Unrealized (Losses) (2,248) (2,247)
TOTAL, Unrealized (Losses) (6,760) (3,280)
AMORTIZED COST [Abstract]    
Due in one year or less 0 0
Due after one year through five years 36,586 17,370
Due after five years through ten years 347,831 426,034
Due after ten years 705,963 436,077
Total Amortized Cost 1,090,380 879,481
Mortgage-backed securities 588,918 555,036
Common equities and mutual funds 1,009 755
Amortized cost 1,680,307 1,435,272
FAIR VALUE [Abstract]    
Due in one year or less 0 0
Due after one year through five years 37,674 17,897
Due after five years through ten years 358,198 446,771
Due after ten years 709,660 444,516
Total Fair Value 1,105,532 909,184
Mortgage-back securities 586,454 558,940
Common equities and mutual funds 1,445 1,125
Total securities 1,693,431 1,469,249
Held To Maturity    
Amortized cost 563,529 619,853
Gross unrealized gains 4,901 12,807
Gross unrealized (losses) (4,245) (86)
Fair value 564,185 632,574
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 315,838 24,264
OVER 12 MONTHS, Fair Value 10,295 2,256
TOTAL, Fair Value 326,133 26,520
LESS THAN 12 MONTHS, Unrealized (Losses) (4,022) (55)
OVER 12 MONTHS, Unrealized (Losses) (223) (31)
TOTAL, Unrealized (Losses) (4,245) (86)
AMORTIZED COST [Abstract]    
Due in one year or less 1,483 472
Due after one year through five years 17,926 12,502
Due after five years through ten years 144,996 157,944
Due after ten years 285,435 315,177
Total Amortized Cost 449,840 486,095
Mortgage-backed securities 113,689 133,758
Amortized cost 563,529 619,853
FAIR VALUE [Abstract]    
Due in one year or less 1,480 471
Due after one year through five years 18,160 12,696
Due after five years through ten years 147,832 163,806
Due after ten years 284,257 321,166
Total Fair Value 451,729 498,139
Mortgage-backed securities 112,456 134,435
Total securities 564,185 632,574
Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost   14,936
Total securities   12,978
Amortized Cost   14,936
Fair Value   12,978
Unrealized Gain (Loss)   (1,958)
AMORTIZED COST [Abstract]    
Amortized cost   14,936
FAIR VALUE [Abstract]    
Total securities   12,978
S&P Credit Rating, BB+ [Member] | Moody's Credit Rating, Baa2 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost   4,987
Total securities   4,189
Amortized Cost   4,987
Fair Value   4,189
Unrealized Gain (Loss)   (798)
AMORTIZED COST [Abstract]    
Amortized cost   4,987
FAIR VALUE [Abstract]    
Total securities   4,189
S&P Credit Rating, BB [Member] | Moody's Credit Rating, Baa2 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost   4,981
Total securities   4,077
Amortized Cost   4,981
Fair Value   4,077
Unrealized Gain (Loss)   (904)
AMORTIZED COST [Abstract]    
Amortized cost   4,981
FAIR VALUE [Abstract]    
Total securities   4,077
Standard & Poor's, BBB- Rating [Member] | Moody's Credit Rating, Baa1 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost   4,968
Total securities   4,712
Amortized Cost   4,968
Fair Value   4,712
Unrealized Gain (Loss)   (256)
AMORTIZED COST [Abstract]    
Amortized cost   4,968
FAIR VALUE [Abstract]    
Total securities   4,712
Trust preferred and corporate securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost   14,935
Gross unrealized gains   0
Gross unrealized (losses)   (1,957)
Mortgage-back securities   12,978
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   0
OVER 12 MONTHS, Fair Value   12,978
TOTAL, Fair Value   12,978
LESS THAN 12 MONTHS, Unrealized (Losses)   0
OVER 12 MONTHS, Unrealized (Losses)   (1,957)
TOTAL, Unrealized (Losses)   (1,957)
FAIR VALUE [Abstract]    
Mortgage-back securities   12,978
Small Business Administration Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 57,046 78,431
Gross unrealized gains 825 2,288
Gross unrealized (losses) 0 0
Mortgage-back securities 57,871 80,719
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   8,481
OVER 12 MONTHS, Fair Value   2,688
TOTAL, Fair Value   11,169
LESS THAN 12 MONTHS, Unrealized (Losses)   (58)
OVER 12 MONTHS, Unrealized (Losses)   (39)
TOTAL, Unrealized (Losses)   (97)
FAIR VALUE [Abstract]    
Mortgage-back securities 57,871 80,719
Non-Bank Qualified Obligation of States And Political Subdivisions [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 938,883 668,628
Gross unrealized gains 14,983 30,141
Gross unrealized (losses) (3,037) (97)
Mortgage-back securities 950,829 698,672
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 280,900 89,403
OVER 12 MONTHS, Fair Value 5,853 0
TOTAL, Fair Value 286,753 89,403
LESS THAN 12 MONTHS, Unrealized (Losses) (2,887) (745)
OVER 12 MONTHS, Unrealized (Losses) (150) 0
TOTAL, Unrealized (Losses) (3,037) (745)
FAIR VALUE [Abstract]    
Mortgage-back securities 950,829 698,672
Asset-backed Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 94,451 117,487
Gross unrealized gains 2,381 73
Gross unrealized (losses) 0 (745)
Mortgage-back securities 96,832 116,815
FAIR VALUE [Abstract]    
Mortgage-back securities 96,832 116,815
Collateralized Mortgage Backed Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 588,918 555,036
Gross unrealized gains 1,259 4,382
Gross unrealized (losses) (3,723) (478)
Mortgage-back securities 586,454 558,940
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 237,897 54,065
OVER 12 MONTHS, Fair Value 100,287 36,979
TOTAL, Fair Value 338,184 91,044
LESS THAN 12 MONTHS, Unrealized (Losses) (1,625) (230)
OVER 12 MONTHS, Unrealized (Losses) (2,098) (248)
TOTAL, Unrealized (Losses) (3,723) (478)
FAIR VALUE [Abstract]    
Mortgage-back securities 586,454 558,940
Debt Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 1,679,298 1,434,517
Gross unrealized gains 19,448 36,884
Gross unrealized (losses) (6,760) (3,277)
Mortgage-back securities 1,691,986 1,468,124
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 518,797 151,949
OVER 12 MONTHS, Fair Value 106,140 52,645
TOTAL, Fair Value 624,937 204,594
LESS THAN 12 MONTHS, Unrealized (Losses) (4,512) (1,033)
OVER 12 MONTHS, Unrealized (Losses) (2,248) (2,244)
TOTAL, Unrealized (Losses) (6,760) (3,277)
FAIR VALUE [Abstract]    
Mortgage-back securities 1,691,986 1,468,124
Common Equities And Mutual Funds [Member]    
Available-for-sale equity securities [Abstract]    
Amortized cost 1,009 755
Gross unrealized gains 436 373
Gross unrealized (losses) 0 (3)
Fair value 1,445 1,125
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   0
OVER 12 MONTHS, Fair Value   125
TOTAL, Fair Value   125
LESS THAN 12 MONTHS, Unrealized (Losses)   0
OVER 12 MONTHS, Unrealized (Losses)   (3)
TOTAL, Unrealized (Losses)   (3)
US States and Political Subdivisions Debt Securities [Member]    
Held To Maturity    
Amortized cost 19,247 20,626
Gross unrealized gains 157 355
Gross unrealized (losses) (36) (44)
Fair value 19,368 20,937
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 1,364 2,909
OVER 12 MONTHS, Fair Value 4,089 2,256
TOTAL, Fair Value 5,453 5,165
LESS THAN 12 MONTHS, Unrealized (Losses) (6) (13)
OVER 12 MONTHS, Unrealized (Losses) (30) (31)
TOTAL, Unrealized (Losses) (36) (44)
AMORTIZED COST [Abstract]    
Amortized cost 19,247 20,626
FAIR VALUE [Abstract]    
Total securities 19,368 20,937
Non-Bank Qualified Obligation of States And Political Subdivisions [Member]    
Held To Maturity    
Amortized cost 430,593 465,469
Gross unrealized gains 4,744 11,744
Gross unrealized (losses) (2,976) (11)
Fair value 432,361 477,202
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 202,018 1,294
OVER 12 MONTHS, Fair Value 6,206 0
TOTAL, Fair Value 208,224 1,294
LESS THAN 12 MONTHS, Unrealized (Losses) (2,783) (11)
OVER 12 MONTHS, Unrealized (Losses) (193) 0
TOTAL, Unrealized (Losses) (2,976) (11)
AMORTIZED COST [Abstract]    
Amortized cost 430,593 465,469
FAIR VALUE [Abstract]    
Total securities 432,361 477,202
Collateralized Mortgage Backed Securities [Member]    
Held To Maturity    
Amortized cost 113,689 133,758
Gross unrealized gains 0 708
Gross unrealized (losses) (1,233) (31)
Fair value 112,456 134,435
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 112,456 20,061
OVER 12 MONTHS, Fair Value 0 0
TOTAL, Fair Value 112,456 20,061
LESS THAN 12 MONTHS, Unrealized (Losses) (1,233) (31)
OVER 12 MONTHS, Unrealized (Losses) 0 0
TOTAL, Unrealized (Losses) (1,233) (31)
AMORTIZED COST [Abstract]    
Amortized cost 113,689 133,758
FAIR VALUE [Abstract]    
Total securities $ 112,456 $ 134,435
v3.8.0.1
SECURITIES - ACTIVITIES RELATED TO SALE (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Available For Sale      
Proceeds from sales $ 457,306 $ 285,508 $ 566,371
Gross gains on sales 4,091 1,459 2,753
Gross losses on sales 4,628 1,785 4,387
Net (loss) on available for sale securities (537) (326) (1,634)
Held To Maturity      
Net carrying amount of securities sold 5,826 0 0
Gross realized gain on sales 92 0 0
Gross realized losses on sales 48 0 0
Net gain on held to maturity securities $ 44 $ 0 $ 0
v3.8.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 61,413 $ 56,075  
Less: accumulated depreciation and amortization (42,093) (37,449)  
Net book value 19,320 18,626  
Depreciation expense of premises, furniture, and equipment 5,500 5,400 $ 4,600
Amortization expense on capitalized leases 100 200 $ 200
Land [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 1,578 1,578  
Buildings [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 10,642 10,482  
Furniture, Fixtures, and Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 46,934 41,756  
Capitalized Leases [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 2,259 $ 2,259  
v3.8.0.1
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
IRA deposit accounts permanently insured by DIF under management of FDIC $ 250,000  
Time certificates of deposits in denominations of $250,000 or more 85,200,000 $ 44,500,000
Time Deposits, Fiscal Year Maturity [Abstract]    
2018 560,825,000  
2019 10,943,000  
2020 5,158,000  
2021 2,412,000  
2022 2,227,000  
Thereafter 0  
Total Certificates 581,565,000  
Wholesale deposits 476,173,000 $ 0
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC 250,000  
Wholesale Deposits [Member]    
Time Deposits, Fiscal Year Maturity [Abstract]    
Wholesale deposits $ 457,900,000  
v3.8.0.1
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Short Term Debt (Details)
 12 Months Ended
Sep. 30, 2017
USD ($)
Lease
Sep. 30, 2016
USD ($)
Short-term Debt [Line Items]    
Short-term debt $ 1,404,534,000 $ 1,095,118,000
Fixed rate of FHLB advances 1.27%  
Pledged securities against specific FHLB advances, fair value $ 1,070,000,000 824,500,000
Qualified mortgage loans pledged as collateral $ 628,000,000 501,000,000
Number of capital leases | Lease 3  
Number of equipment leases | Lease 2  
Number of property leases | Lease 1  
Leases, current $ 79,507  
Securities sold under agreements to repurchase, total 2,500,000 3,000,000
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract]    
Highest month-end balance 3,782,000 3,468,000
Average balance $ 2,225,000 $ 2,179,000
Weighted average interest rate for the year 0.98% 0.60%
Weighted average interest rate at year end 1.59% 0.61%
Securities pledged as collateral for securities sold under agreement to repurchase, fair value $ 9,300,000 $ 9,200,000
Overnight federal funds purchased [Member]    
Short-term Debt [Line Items]    
Short-term debt 987,000,000 992,000,000
Short-term FHLB advances [Member]    
Short-term Debt [Line Items]    
Short-term debt 415,000,000 100,000,000
Short-term capital lease [Member]    
Short-term Debt [Line Items]    
Short-term debt 62,000 79,000
Repurchase agreements [Member]    
Short-term Debt [Line Items]    
Short-term debt $ 2,472,000 $ 3,039,000
v3.8.0.1
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Debt Disclosure [Abstract]    
Long-term FHLB advances $ 0 $ 7,000
Trust preferred securities 10,310 10,310
Trust preferred securities, Total 10,310  
Subordinated debentures (net of issuance costs) 73,347 73,211
Long-term capital lease 1,876 1,939
Long-term capital lease    
2018 0  
2019 65  
2020 72  
2021 77  
2022 82  
Thereafter 1,580  
Total Long-term capital lease 1,876 1,939
Maturities of Long-term Debt    
Total 2018 0  
Total 2019 65  
Total 2020 72  
Total 2021 77  
Total 2022 82  
Total Thereafter 85,237  
Total Long-term Debt $ 85,533 $ 92,460
v3.8.0.1
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2017
USD ($)
Lease
Period
$ / shares
shares
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Debt Instrument [Line Items]      
Advances from FHLB $ 0 $ 7,000  
Weighted average rate of FHLB advances 1.27%    
Proceeds from long term debt $ 0 75,000 $ 0
Proceeds from debt, net of issuance costs 73,347 73,211  
Accrued interest payable $ 2,280 $ 875  
Number of capital leases | Lease 3    
Number of equipment leases | Lease 2    
Number of property leases | Lease 1    
Leases expense in next twelve months $ 1,900    
First Midwest Financial Capital Trust I [Member]      
Debt Instrument [Line Items]      
Equity method investment, ownership percentage 100.00%    
Issuance of trust preferred securities (in shares) | shares 10,000    
Number of authorized shares of trust preferred securities issued (in shares) | shares 10,310    
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period 10    
Redemption price per capital security (in dollars per share) | $ / shares $ 1,000    
First Midwest Financial Capital Trust I [Member] | LIBOR [Member]      
Debt Instrument [Line Items]      
Basis spread on variable rate 3.75%    
Effective interest rate 5.22% 4.99%  
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 [Member] | Subordinated Debt [Member]      
Debt Instrument [Line Items]      
Proceeds from long term debt $ 75,000    
Interest rate, stated percentage 5.75%    
Net proceeds from issuance of debt, before issuance costs $ 73,900    
Proceeds from debt, net of issuance costs 73,300    
Debt issuance costs 1,700    
Accrued interest payable $ 4,300    
Weighted Average [Member]      
Debt Instrument [Line Items]      
Weighted average rate of FHLB advances   6.98%  
Weighted Average [Member] | First Midwest Financial Capital Trust I [Member] | LIBOR [Member]      
Debt Instrument [Line Items]      
Effective interest rate 12.50%    
v3.8.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]      
Number of hours of employment required for ESOP 1000 hours    
Years of employment to be eligible for ESOP 1 year    
Eligible age for ESOP 21 years    
Employee Stock Ownership Plan (ESOP), Expense $ 1,668,000 $ 1,150,000 $ 994,000
Contribution to ESOP $ 1,606,102 $ 1,174,682 $ 992,038
Percentage of benefits vested after credited service 100.00%    
ESOP award vesting period 7 years    
Years of credited service 7 years    
Number of shares (ESOP) released (in shares) 20,486 19,381 23,750
Fair value of shares (ESOP) released (in dollars per share) $ 78.40 $ 60.61 $ 41.77
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) 14,126 15,502 10,294
Shares purchased for dividend reinvestment (in shares) 1,479 2,710 2,974
Year-end ESOP shares [Abstract]      
Allocated shares (in shares) 256,219 262,872 256,283
Unearned shares (in shares) 0 0 0
Total ESOP shares (in shares) 256,219 262,872 256,283
Fair value of unearned shares $ 0 $ 0 $ 0
Contribution expense to profit sharing plan included in compensation and benefits $ 1,610,000 $ 1,260,000 $ 1,100,000
v3.8.0.1
SHARE BASED COMPENSATION PLANS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively $ 6,486 $ 559 $ 334
Tax effects of employee's stock-based compensation expense recognized income 3,907 $ 192 $ 66
Stock based compensation expense not yet recognized in income $ 16,900    
Weighted average remaining period for unrecognized stock based compensation 4 years 30 days    
Period that options are issued 10 years    
Percentage of options vesting at either grant date or over four year period 100.00%    
Period that options vest 4 years    
Granted (in shares) 0 0 0
Fair value of share granted (in shares) 316,604 8,154  
Award vesting P8Y    
Director [Member]      
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Fair value of share granted (in shares) 500,000 200,000 100,000
v3.8.0.1
SHARE BASED COMPENSATION PLANS - Summary of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Number of Shares [Roll Forward]      
Options outstanding, beginning of period (in shares) 125,560 189,088  
Granted (in shares) 0 0 0
Exercised (in shares) (29,386) (63,528)  
Forfeited or expired (in shares) (20,417) 0  
Options outstanding, end of period (in shares) 75,757 125,560 189,088
Options exercisable end of year (in shares) 75,757 125,560  
Weighted Average Exercise Price [Roll Forward]      
Options outstanding, beginning of period (in dollars per share) $ 25.73 $ 25.74  
Granted (in dollars per share) 0.00 0.00  
Exercised (in dollars per share) 33.38 25.77  
Forfeited or expired (in dollars per share) 26.25 0.00  
Options outstanding, end of period (in dollars per share) 22.62 25.73 $ 25.74
Options exercisable end of year (in dollars per share) $ 22.62 $ 25.73  
Weighted Average Remaining Contractual Term (Yrs) [Abstract]      
Options outstanding , weighted average remaining contractual term (Yrs) 2 years 3 months 10 days 2 years 8 months 5 days 3 years 1 month 28 days
Options exercisable end of year, weighted average remaining contractual term (Yrs) 2 years 3 months 10 days 2 years 8 months 5 days  
Aggregate Intrinsic Value [Abstract]      
Options outstanding, beginning of period $ 4,379 $ 3,027  
Granted 0 0  
Exercised 1,790 1,510 $ 900
Forfeited or expired 1,464 0  
Options outstanding, end of period $ 4,225 4,379 $ 3,027
Options exercisable end of year   $ 4,379  
v3.8.0.1
SHARE BASED COMPENSATION PLANS - Nonvested Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 20,656 44,002
Granted (in shares) 316,604 8,154
Vested (in shares) (29,135) (33,666)
Forfeited or expired (in shares) (3,599) (2,166)
Nonvested shares outstanding, end of period (in shares) 304,526 20,656
Weighted Average Fair Value At Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 41.37 $ 40.80
Granted (in dollars per share) 87.49 42.49
Vested (in dollars per share) 64.22 40.93
Forfeited or expired (in dollars per share) 56.39 46.98
Nonvested shares outstanding, end of period (in dollars per share) $ 86.96 $ 41.37
v3.8.0.1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Federal:      
Current $ 12,153 $ 4,410 $ 4,217
Deferred (5,040) (440) (3,896)
Federal income tax expense 7,113 3,970 321
State:      
Current 4,366 1,422 1,048
Deferred (1,246) 210 (1)
State tax expense 3,120 1,632 1,047
Income tax expense 10,233 5,602 1,368
Income tax expense (benefit) to statutory federal income tax rate reconciliation [Abstract]      
Income tax expense at federal tax rate 19,303 13,588 6,798
Increase (decrease) resulting from:      
State income taxes net of federal benefit 2,014 933 692
Nontaxable buildup in cash surrender value (776) (580) (711)
Stock based compensation (593) (66) (37)
Tax exempt income (9,991) (8,257) (5,230)
Nondeductible expenses 316 196 188
Other, net (40) (212) (332)
Income tax expense 10,233 5,602 1,368
Deferred tax assets:      
Bad debts 2,832 2,044  
Deferred compensation 1,548 1,345  
Stock based compensation 3,436 265  
Operational reserve 645 540  
AMT Credit 1,869 5,563  
Intangibles 5,235 393  
Indirect tax benefits of unrecognized tax positions 266 216  
Other assets 1,933 1,362  
Gross deferred tax assets 17,764 11,728  
Deferred tax liabilities:      
FHLB stock dividend (425) (411)  
Premises and equipment (1,789) (1,913)  
Patents (842) (988)  
Prepaid expenses (673) (668)  
Net unrealized gains on securities available for sale (4,934) (12,348)  
Gross deferred tax liabilities (8,663) (16,328)  
Net deferred tax assets 9,101    
Net deferred tax liabilities   (4,600)  
Gross deferred tax on state net operating loss carryforwards 1,300 900  
Additional bad debt deductions provided by federal income tax laws 6,700    
Deferred tax liability, bad debt deductions 2,300 2,300  
Reconciliation for liabilities [Abstract]      
Balance at beginning of year 525 974  
Additions for tax positions related to the current year 192 63  
Additions for tax positions related to the prior years 31 0  
Reductions for tax positions due to settlement with taxing authorities 0 (372)  
Reductions for tax positions related to prior years (103) (140)  
Balance at end of year 645 $ 525 $ 974
Unrecognized tax benefits that, if recognized, would impact the effective rate 460    
Accrued interest related to unrecognized tax benefits 114    
Deferred Tax Expense, Event of Liquidation $ 2,300    
v3.8.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details)
Sep. 30, 2017
Sep. 30, 2016
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 7.64% 17.28%
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio 4.00% 4.50%
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 5.00% 6.50%
Common equity Tier 1 (to risk-weighted assets), actual ratio 13.97%  
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 4.50%  
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 6.50%  
Tangible capital (to tangible assets), actual ratio   8.35%
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, ratio   4.00%
Tangible capital (to tangible assets), minimum requirement to be well capitalized under prompt corrective actions provisions, ratio   5.00%
Tier 1 (core) capital ( to risk weighted assets), ratio 14.46% 17.82%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 6.00% 6.00%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 8.00% 8.00%
Total qualifying capital (to risk-weighted assets), ratio 18.41%  
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 8.00%  
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 10.00%  
Total risk based capital (to risk weighted assets), ratio   23.17%
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, ratio   8.00%
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio   10.00%
MetaBank [Member]    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 9.64% 21.95%
Common equity Tier 1 (to risk-weighted assets), actual ratio 18.22%  
Tangible capital (to tangible assets), actual ratio   10.35%
Tier 1 (core) capital ( to risk weighted assets), ratio 18.22% 21.95%
Total qualifying capital (to risk-weighted assets), ratio 18.59%  
Total risk based capital (to risk weighted assets), ratio   22.35%
v3.8.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Reconciliation of capital amounts [Abstract]        
Total equity $ 434,496 $ 334,975 $ 271,335 $ 174,802
Adjustments:        
LESS: Goodwill, net of associated deferred tax liabilities 95,332      
LESS: Certain other intangible assets 41,743      
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,495      
LESS: Net unrealized gains (losses) on available-for-sale securities 9,166      
Common Equity Tier 1 286,760      
Long-term debt and other instruments qualifying as Tier 1 10,310      
LESS: Additional tier 1 capital deductions 374      
Total Tier 1 capital 296,696      
Allowance for loan losses 7,718      
Subordinated debentures (net of issuance costs) 73,347      
Total qualifying capital $ 377,761      
v3.8.0.1
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
 3 Months Ended
Dec. 31, 2014
Sep. 30, 2017
Oct. 14, 2016
Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]        
Unfunded loan commitments   $ 233,200,000   $ 182,900,000
Commitment to purchase securities   0   0
Securities pledged as collateral for public funds on deposit   5,700,000   5,800,000
Securities pledged as collateral for individual, trust, and estate deposits   $ 3,800,000   $ 3,400,000
Inter National Bank [Member]        
Loss Contingencies [Line Items]        
Amount of shortfall in depository account $ 10,500,000      
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member]        
Loss Contingencies [Line Items]        
Estimate of possible loss     $ 4,001,025.45  
v3.8.0.1
LEASE COMMITMENTS (Details)
 12 Months Ended
Sep. 30, 2017
USD ($)
Lease_renewals
Leases [Abstract]  
Expiration period of various noncancelable operating lease agreements Dec. 31, 2036
Annual rent, minimum $ 12,000
Annual rent, maximum $ 789,000
Expiration period of capital lease agreements Dec. 31, 2035
Operating lease term 20 years
Operating lease, number of additional renewals | Lease_renewals 4
Operating lease, renewal term 5 years
Total minimum rental commitments for operating leases [Abstract]  
2018 $ 2,486,000
2019 2,287,000
2020 2,289,000
2021 2,143,000
2022 1,882,000
Thereafter 17,922,000
Total Operating Lease Commitments 29,009,000
Total minimum rental commitments for capital leases [Abstract]  
2018 179,000
2019 179,000
2020 182,000
2021 182,000
2022 182,000
Thereafter 2,240,000
Total Capital Lease Commitments 3,144,000
Amounts representing interest 1,206,000
Present value of net minimum lease payments $ 1,938,000
v3.8.0.1
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Sep. 30, 2015
USD ($)
Jun. 30, 2015
USD ($)
Mar. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Sep. 30, 2017
USD ($)
segment
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Segment Reporting [Abstract]                              
Number of reportable segments | segment                         3    
Segment data [Abstract]                              
Interest income                         $ 108,103 $ 81,396 $ 61,607
Interest expense $ 4,461 $ 3,918 $ 3,752 $ 2,742 $ 1,836 $ 844 $ 691 $ 720 $ 660 $ 593 $ 473 $ 661 14,873 4,091 2,387
Net interest income (expense)                         93,230 77,305 59,220
Provision for loan losses (144) $ 1,240 $ 8,649 $ 843 548 $ 2,098 $ 1,173 $ 786 124 $ 700 $ 593 $ 48 10,589 4,605 1,465
Non-interest income                         172,172 100,770 58,174
Non-interest expense                         199,663 134,648 96,506
Income (loss) before income tax expense (benefit)                         55,150 38,822 19,423
Total assets 5,228,332       4,006,419       2,529,705       5,228,332 4,006,419 2,529,705
Goodwill 98,723       36,928       36,928       98,723 36,928 36,928
Total deposits 3,223,424       2,430,082       1,657,534       3,223,424 2,430,082 1,657,534
Payments                              
Segment data [Abstract]                              
Interest income                         13,845 9,711 7,261
Interest expense                         503 181 169
Net interest income (expense)                         13,342 9,530 7,092
Provision for loan losses                         7,613 971 0
Non-interest income                         165,707 95,261 54,417
Non-interest expense                         132,984 77,411 47,731
Income (loss) before income tax expense (benefit)                         38,452 26,409 13,778
Total assets 185,521       87,311       93,336       185,521 87,311 93,336
Goodwill 87,145       25,350       25,350       87,145 25,350 25,350
Total deposits 2,436,893       2,131,042       1,424,304       2,436,893 2,131,042 1,424,304
Banking                              
Segment data [Abstract]                              
Interest income                         52,231 38,321 31,394
Interest expense                         2,723 1,331 1,377
Net interest income (expense)                         49,508 36,990 30,017
Provision for loan losses                         2,976 3,634 689
Non-interest income                         4,685 4,280 3,358
Non-interest expense                         24,520 23,001 19,028
Income (loss) before income tax expense (benefit)                         26,697 14,635 13,658
Total assets 1,343,968       946,420       724,834       1,343,968 946,420 724,834
Goodwill 11,578       11,578       11,578       11,578 11,578 11,578
Total deposits 229,969       299,030       233,235       229,969 299,030 233,235
Corporate Services/Other                              
Segment data [Abstract]                              
Interest income                         42,027 33,364 22,952
Interest expense                         11,647 2,579 841
Net interest income (expense)                         30,380 30,785 22,111
Provision for loan losses                         0 0 776
Non-interest income                         1,780 1,229 399
Non-interest expense                         42,159 34,236 29,747
Income (loss) before income tax expense (benefit)                         (9,999) (2,222) (8,013)
Total assets 3,698,843       2,972,688       1,711,535       3,698,843 2,972,688 1,711,535
Goodwill 0       0       0       0 0 0
Total deposits $ 556,562       $ 10       $ (5)       $ 556,562 $ 10 $ (5)
v3.8.0.1
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
ASSETS [Abstract]                                      
Cash and cash equivalents $ 1,267,586     $ 773,830 $ 773,830     $ 27,658 $ 27,658     $ 29,832 $ 773,830 $ 27,658 $ 29,832 $ 1,267,586 $ 773,830 $ 27,658 $ 29,832
Other assets                               12,738 7,826    
Total assets                               5,228,332 4,006,419 2,529,705  
LIABILITIES [Abstract]                                      
Subordinated debentures                               85,533 92,460    
Accrued expenses and other liabilities                               78,065 48,309    
Total liabilities                               4,793,836 3,671,444    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock                               96 85    
Additional paid-in capital                               258,336 184,780    
Retained earnings                               167,164 127,190    
Accumulated other comprehensive income (loss)                               9,166 22,920    
Treasury stock, at cost                               (266) 0    
Total stockholders’ equity                               434,496 334,975 271,335 174,802
Total liabilities and stockholders’ equity                               5,228,332 4,006,419    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense 4,461 $ 3,918 $ 3,752 2,742 1,836 $ 844 $ 691 720 660 $ 593 $ 473 661 14,873 4,091 2,387        
Other expense                         199,663 134,648 96,506        
Income tax expense                         10,233 5,602 1,368        
Net Income 1,744 9,787 32,142 1,244 6,006 8,873 14,283 4,058 4,639 4,640 5,181 3,595 44,917 33,220 18,055        
Cash flows from operating activities:                                      
Net Income 1,744 $ 9,787 $ 32,142 1,244 6,006 $ 8,873 $ 14,283 4,058 4,639 $ 4,640 $ 5,181 3,595 44,917 33,220 18,055        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         45,048 35,617 28,882        
Stock compensation                         10,401 487 258        
Net change in other assets                         (23,408) (1,968) (672)        
Change in other liabilities                         30,806 11,237 6,911        
Net cash provided by operating activities                         119,998 78,498 49,214        
Cash flows from investing activities:                                      
Net cash used in investing activities                         (700,433) (738,480) (453,915)        
Cash flows from financing activities:                                      
Cash dividends paid                         (4,839) (4,389) (3,493)        
Proceeds from contingent consideration - equity                         (17,253) 0 0        
Proceeds from exercise of stock options & issuance of common stock                         650 13,857 51,547        
Issuance of common shares due to acquisition                         (37,296) 0 (24,303)        
Issuance of restricted stock                         4 0 0        
Proceeds from long term debt                         0 75,000 0        
Payment of debt issuance costs                         0 (1,767) 0        
Shares repurchased for tax withholdings on stock compensation                         (470) 0 0        
Net cash provided by financing activities                         1,074,191 1,406,154 402,527        
Net change in cash and cash equivalents                         493,756 746,172 (2,174)        
CASH AND CASH EQUIVALENTS [Abstract]                                      
Cash and cash equivalents at beginning of year       773,830       27,658       29,832 773,830 27,658 29,832        
Cash and cash equivalents at end of year 1,267,586       773,830       27,658       1,267,586 773,830 27,658        
Meta Financial [Member]                                      
ASSETS [Abstract]                                      
Cash and cash equivalents 14,569     15,716 15,716     14,280 14,280     9,439 15,716 14,280 9,439 14,569 15,716 $ 14,280 $ 9,439
Investment in subsidiaries                               521,021 403,574    
Other assets                               406 413    
Total assets                               535,996 419,703    
LIABILITIES [Abstract]                                      
Subordinated debentures                               83,657 83,521    
Accrued expenses and other liabilities                               17,843 1,207    
Total liabilities                               101,500 84,728    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock                               96 85    
Additional paid-in capital                               258,336 184,780    
Retained earnings                               167,164 127,190    
Accumulated other comprehensive income (loss)                               9,166 22,920    
Treasury stock, at cost                               (266) 0    
Total stockholders’ equity                               434,496 334,975    
Total liabilities and stockholders’ equity                               $ 535,996 $ 419,703    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense                         4,959 1,022 418        
Other expense                         440 382 269        
Total expense                         5,399 1,404 687        
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries                         (5,399) (1,404) (687)        
Income tax expense                         (1,935) (519) (324)        
Gain (Loss) before equity in undistributed net income of subsidiaries                         (3,464) (885) (363)        
Equity in undistributed net income of subsidiaries                         48,381 34,105 18,418        
Net Income                         44,917 33,220 18,055        
Cash flows from operating activities:                                      
Net Income                         44,917 33,220 18,055        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         136 (22) 0        
Equity in undistributed net income of subsidiaries                         (48,381) (34,105) (18,418)        
Stock compensation                         10,401 427 253        
Net change in other assets                         7 (5) (15)        
Change in other liabilities                         16,636 541 378        
Net cash provided by operating activities                         23,716 56 253        
Cash flows from investing activities:                                      
Capital contributions to subsidiaries                         (82,820) (81,000) (67,600)        
Net cash used in investing activities                         (82,820) (81,000) (67,600)        
Cash flows from financing activities:                                      
Cash dividends paid                         (4,839) (4,389) (3,493)        
Purchase of shares by ESOP                         1,174 0 0        
Proceeds from contingent consideration - equity                         24,142 0 0        
Proceeds from exercise of stock options & issuance of common stock                         650 13,536 75,681        
Issuance of common shares due to acquisition                         37,296 0 0        
Issuance of restricted stock                         4 0 0        
Proceeds from long term debt                         0 75,000 0        
Payment of debt issuance costs                         0 (1,767) 0        
Shares repurchased for tax withholdings on stock compensation                         (470) 0 0        
Other, net                         0 0 0        
Net cash provided by financing activities                         57,957 82,380 72,188        
Net change in cash and cash equivalents                         (1,147) 1,436 4,841        
CASH AND CASH EQUIVALENTS [Abstract]                                      
Cash and cash equivalents at beginning of year       $ 15,716       $ 14,280       $ 9,439 15,716 14,280 9,439        
Cash and cash equivalents at end of year $ 14,569       $ 15,716       $ 14,280       $ 14,569 $ 15,716 $ 14,280        
v3.8.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]                              
Interest income $ 28,949 $ 28,861 $ 27,718 $ 22,575 $ 21,729 $ 20,763 $ 20,629 $ 18,275 $ 16,363 $ 15,254 $ 15,758 $ 14,232      
Interest expense 4,461 3,918 3,752 2,742 1,836 844 691 720 660 593 473 661 $ 14,873 $ 4,091 $ 2,387
Net interest income 24,488 24,943 23,966 19,833 19,893 19,919 19,938 17,555 15,703 14,661 15,285 13,571 93,230 77,305 59,220
Provision for loan losses (144) 1,240 8,649 843 548 2,098 1,173 786 124 700 593 48 10,589 4,605 1,465
Net Income $ 1,744 $ 9,787 $ 32,142 $ 1,244 $ 6,006 $ 8,873 $ 14,283 $ 4,058 $ 4,639 $ 4,640 $ 5,181 $ 3,595 $ 44,917 $ 33,220 $ 18,055
Earnings (loss) per common and common equivalent share [Abstract]                              
Basic (in dollars per share) $ 0.19 $ 1.05 $ 3.44 $ 0.14 $ 0.70 $ 1.04 $ 1.68 $ 0.49 $ 0.64 $ 0.67 $ 0.79 $ 0.58 $ 4.86 [1] $ 3.93 [1] $ 2.68 [1]
Diluted (in dollars per share) 0.19 1.04 3.42 0.14 0.70 1.04 1.67 0.49 0.63 0.66 0.78 0.58 $ 4.83 [1] $ 3.91 [1] $ 2.66 [1]
Dividend declared per share (in dollars per share) $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13      
[1] See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91.
v3.8.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
Sep. 30, 2017
Sep. 30, 2016
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Available For Sale    
Total debt securities 586,454,000 558,940,000
Total securities 1,693,431,000 1,469,249,000
Held To Maturity    
Total securities 564,185,000 632,574,000
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 292,000 76,000
Level 1 [Member]    
Available For Sale    
Total securities 1,445,000 1,125,000
Held To Maturity    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member]    
Available For Sale    
Total securities 1,691,986,000 1,468,124,000
Held To Maturity    
Total securities 564,185,000 632,574,000
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 3 [Member]    
Available For Sale    
Total securities 0 0
Held To Maturity    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 1,318,402,000 926,803,000
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 196,970,000 163,886,000
Level 3 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 576,330,000 422,307,000
Level 3 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 32,870,000 36,897,000
Recurring [Member]    
Available For Sale    
Trust preferred and corporate securities   12,978,000
Small business administration securities 57,871,000 80,719,000
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 950,829,000 698,672,000
Mortgage-backed securities 586,454,000 558,940,000
Total debt securities 1,691,986,000 1,468,124,000
Common Equities and Mutual Funds, Available-for-Sale 1,445,000 1,125,000
Total securities 1,693,431,000 1,469,249,000
Held To Maturity    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 19,368,000 20,937,000
Non-bank qualified obligations of states and political subdivisions 432,361,000 477,202,000
Mortgage-backed securities 112,456,000 134,435,000
Total debt securities 564,185,000 632,574,000
Common equities and mutual funds 0 0
Total securities 564,185,000 632,574,000
Asset Backed Securities Available For Sale Fair Value Disclosure 96,832,000 116,815,000
Asset Backed Securities Held To Maturity 0 0
Recurring [Member] | Level 1 [Member]    
Available For Sale    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 1,445,000 1,125,000
Total securities 1,445,000 1,125,000
Held To Maturity    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Asset Backed Securities Available For Sale Fair Value Disclosure 0 0
Asset Backed Securities Held To Maturity 0 0
Recurring [Member] | Level 2 [Member]    
Available For Sale    
Trust preferred and corporate securities   12,978,000
Small business administration securities 57,871,000 80,719,000
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 950,829,000 698,672,000
Mortgage-backed securities 586,454,000 558,940,000
Total debt securities 1,691,986,000 1,468,124,000
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 1,691,986,000 1,468,124,000
Held To Maturity    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 19,368,000 20,937,000
Non-bank qualified obligations of states and political subdivisions 432,361,000 477,202,000
Mortgage-backed securities 112,456,000 134,435,000
Total debt securities 564,185,000 632,574,000
Common equities and mutual funds 0 0
Total securities 564,185,000 632,574,000
Asset Backed Securities Available For Sale Fair Value Disclosure 96,832,000 116,815,000
Asset Backed Securities Held To Maturity 0 0
Recurring [Member] | Level 3 [Member]    
Available For Sale    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 0 0
Held To Maturity    
Trust preferred and corporate securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Asset Backed Securities Available For Sale Fair Value Disclosure 0 0
Asset Backed Securities Held To Maturity 0 0
Nonrecurring [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 292,000 144,000
Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   68,000
Nonrecurring [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   68,000
Nonrecurring [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 292,000 76,000
Nonrecurring [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 292,000 144,000
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   68,000
Nonrecurring [Member] | Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   68,000
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets $ 292,000 $ 76,000
v3.8.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Minimum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (in hundredths) 4.00%  
Maximum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (in hundredths) 10.00%  
Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 1,318,402 $ 926,803
Impaired Loans [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 0 68
Valuation techniques [1] Appraised values  
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 292 $ 76
Valuation techniques [1] Appraised values  
[1] The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.
v3.8.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Financial assets [Abstract]      
Securities available for sale $ 1,693,431 $ 1,469,249  
Securities held to maturity 564,185 632,574  
Financial liabilities [Abstract]      
Capital leases 0 0 $ 2,259
Trust preferred securities 10,310 10,310  
Subordinated debentures 73,347    
Level 1 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 1,267,586 773,830  
Securities available for sale 1,445 1,125  
Securities held to maturity 0 0  
Total securities 1,445 1,125  
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Federal Home Loan Bank stock 0 0  
Accrued interest receivable 19,380 17,199  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,454,057 2,167,522  
Interest bearing demand deposits, savings, and money markets 169,557 136,568  
Certificates of deposit 0 0  
Wholesale non-maturing deposits 18,245    
Wholesale certificates of deposits 0    
Total deposits 2,641,859 2,304,090  
Advances from Federal Home Loan Bank 0 0  
Federal funds purchased 987,000 992,000  
Securities sold under agreements to repurchase 0 0  
Capital leases 0 0  
Trust preferred securities 0 0  
Subordinated debentures 0 0  
Accrued interest payable 2,280 875  
Level 2 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 0 0  
Securities available for sale 1,691,986 1,468,124  
Securities held to maturity 564,185 632,574  
Total securities 2,256,171 2,100,698  
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Federal Home Loan Bank stock 61,123 47,512  
Accrued interest receivable 0 0  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 0 0  
Interest bearing demand deposits, savings, and money markets 0 0  
Certificates of deposit 123,094 125,772  
Wholesale non-maturing deposits 0    
Wholesale certificates of deposits 457,509    
Total deposits 580,603 125,772  
Advances from Federal Home Loan Bank 415,003 108,168  
Federal funds purchased 0 0  
Securities sold under agreements to repurchase 2,472 3,039  
Capital leases 1,938 2,018  
Trust preferred securities 10,447 10,437  
Subordinated debentures 76,500 77,250  
Accrued interest payable 0 0  
Level 3 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 0 0  
Securities available for sale 0 0  
Securities held to maturity 0 0  
Total securities 0 0  
Loans receivable: [Abstract]      
Impaired Loans, Net 1,318,402 926,803  
Federal Home Loan Bank stock 0 0  
Accrued interest receivable 0 0  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 0 0  
Interest bearing demand deposits, savings, and money markets 0 0  
Certificates of deposit 0 0  
Wholesale non-maturing deposits 0    
Wholesale certificates of deposits 0    
Total deposits 0 0  
Advances from Federal Home Loan Bank 0 0  
Federal funds purchased 0 0  
Securities sold under agreements to repurchase 0 0  
Capital leases 0 0  
Trust preferred securities 0 0  
Subordinated debentures 0 0  
Accrued interest payable 0 0  
Carrying Amount [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 1,267,586 773,830  
Securities available for sale 1,693,431 1,469,249  
Securities held to maturity 563,529 619,853  
Total securities 2,256,960 2,089,102  
Loans receivable: [Abstract]      
Impaired Loans, Net 1,326,832 925,894  
Federal Home Loan Bank stock 61,123 47,512  
Accrued interest receivable 19,380 17,199  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,454,057 2,167,522  
Interest bearing demand deposits, savings, and money markets 169,557 136,568  
Certificates of deposit 123,637 125,992  
Wholesale non-maturing deposits 18,245    
Wholesale certificates of deposits 457,928    
Total deposits 3,223,424 2,430,082  
Advances from Federal Home Loan Bank 415,000 107,000  
Federal funds purchased 987,000 992,000  
Securities sold under agreements to repurchase 2,472 3,039  
Capital leases 1,938 2,018  
Trust preferred securities 10,310 10,310  
Subordinated debentures 73,347 73,211  
Accrued interest payable 2,280 875  
Estimated Fair Value [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 1,267,586 773,830  
Securities available for sale 1,693,431 1,469,249  
Securities held to maturity 564,185 632,574  
Total securities 2,257,616 2,101,823  
Loans receivable: [Abstract]      
Impaired Loans, Net 1,318,402 926,803  
Federal Home Loan Bank stock 61,123 47,512  
Accrued interest receivable 19,380 17,199  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,454,057 2,167,522  
Interest bearing demand deposits, savings, and money markets 169,557 136,568  
Certificates of deposit 123,094 125,772  
Wholesale non-maturing deposits 18,245    
Wholesale certificates of deposits 457,509    
Total deposits 3,222,462 2,429,862  
Advances from Federal Home Loan Bank 415,003 108,168  
Federal funds purchased 987,000 992,000  
Securities sold under agreements to repurchase 2,472 3,039  
Capital leases 1,938 2,018  
Trust preferred securities 10,447 10,437  
Subordinated debentures 76,500 77,250  
Accrued interest payable 2,280 875  
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 196,970 163,886  
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 196,706 162,298  
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 196,970 163,886  
Commercial and Multifamily Real Estate Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial and Multifamily Real Estate Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial and Multifamily Real Estate Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 576,330 422,307  
Commercial and Multifamily Real Estate Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 585,510 422,932  
Commercial and Multifamily Real Estate Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 576,330 422,307  
Agricultural Real Estate Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Real Estate Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Real Estate Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 61,584 63,868  
Agricultural Real Estate Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 61,800 63,612  
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 61,584 63,868  
Consumer Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Consumer Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Consumer Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 163,961 36,738  
Consumer Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 163,004 37,094  
Consumer Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 163,961 36,738  
Commercial Operating [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial Operating [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial Operating [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 35,723 31,108  
Commercial Operating [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 35,759 31,271  
Commercial Operating [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 35,723 31,108  
Agricultural Operating Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Operating Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Operating Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 32,870 36,897  
Agricultural Operating Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 33,594 37,083  
Agricultural Operating Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 32,870 36,897  
Premium Finance Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Premium Finance Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Premium Finance Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 250,964 172,000  
Premium Finance Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 250,459 171,604  
Premium Finance Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net $ 250,964 $ 172,000  
v3.8.0.1
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2017
Dec. 14, 2016
Nov. 01, 2016
Sep. 30, 2016
Sep. 08, 2015
Dec. 02, 2014
Finite-Lived Intangible Assets [Line Items]                    
Goodwill $ 98,723 $ 36,928 $ 36,928 $ 36,928 $ 98,723     $ 36,928    
Goodwill [Roll Forward]                    
Balance, beginning of period   36,928 36,928              
Acquisitions during the period   61,795 0              
Amortization during the period   (12,363) (4,828)              
Write-offs during the period   0 0              
Balance, end of period 98,723 98,723 36,928 36,928            
Intangible Assets [Roll Forward]                    
Balance, beginning of period   28,921 33,577              
Acquisitions during the period   46,397 172              
Amortization during the period   (12,363) (4,828)              
Write-offs during the period   (10,777) 0              
Balance, end of period 52,178 52,178 28,921 33,577            
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Amount Upon Acquisition   35,369                
Accumulated amortization         (18,827)     (6,448)    
Accumulated impairment         (10,777)          
Balance at the end of the period 81,782 81,782 35,369              
Intangible impairment 10,200 10,248 0 0            
Anticipated intangible amortization [Abstract]                    
2018         7,706          
2019         7,147          
2020         5,749          
2021         5,179          
2022         4,257          
Thereafter         22,140          
Total anticipated intangible amortization 52,178 $ 28,921 33,577 33,577 52,178     28,921    
AFS/IBEX Financial Services Inc [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill                   $ 11,600
EPS Financial, LLC [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill             $ 30,375      
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   16 years 1 month 6 days                
Refund Advantage [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill                 $ 25,400  
Specialty Consumer Services [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill           $ 31,419        
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   10 years 2 months 12 days                
Trademark [Member]                    
Goodwill [Roll Forward]                    
Amortization during the period   $ (598) (290)              
Intangible Assets [Roll Forward]                    
Balance, beginning of period   5,149 5,439              
Acquisitions during the period   5,500 0              
Amortization during the period   (598) (290)              
Write-offs during the period   0 0              
Balance, end of period 10,051 10,051 5,149 5,439            
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Amount Upon Acquisition   5,490                
Accumulated amortization         (939)     (341)    
Accumulated impairment         0          
Balance at the end of the period 10,990 10,990 5,490              
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization 10,051 $ 5,149 5,439 5,439 10,051     5,149    
Trademark [Member] | EPS Financial, LLC [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   15 years                
Trademark [Member] | Specialty Consumer Services [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   5 years                
Non-Compete [Member]                    
Goodwill [Roll Forward]                    
Amortization during the period   $ (525) (100)              
Intangible Assets [Roll Forward]                    
Balance, beginning of period   127 227              
Acquisitions during the period   2,180 0              
Amortization during the period   (525) (100)              
Write-offs during the period   0 0              
Balance, end of period 1,782 1,782 127 227            
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Amount Upon Acquisition   300                
Accumulated amortization         (698)     (173)    
Accumulated impairment         0          
Balance at the end of the period 2,480 2,480 300              
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization 1,782 $ 127 227 227 1,782     127    
Non-Compete [Member] | EPS Financial, LLC [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   3 years                
Non-Compete [Member] | Specialty Consumer Services [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   4 years 1 month 6 days                
Customer Relationships [Member]                    
Goodwill [Roll Forward]                    
Amortization during the period   $ (10,405) (4,221)              
Intangible Assets [Roll Forward]                    
Balance, beginning of period   20,590 24,811              
Acquisitions during the period   31,770 0              
Amortization during the period   (10,405) (4,221)              
Write-offs during the period   (10,248) 0              
Balance, end of period 31,707 31,707 20,590 24,811            
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Amount Upon Acquisition   26,040                
Accumulated amortization         (15,855)     (5,450)    
Accumulated impairment         (10,248)          
Balance at the end of the period 57,810 57,810 26,040              
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization 31,707 $ 20,590 24,811 24,811 31,707     20,590    
Customer Relationships [Member] | EPS Financial, LLC [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   20 years                
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   12 years                
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   20 years                
Customer Relationships [Member] | Specialty Consumer Services [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   9 years 1 month 6 days                
Other [Member]                    
Goodwill [Roll Forward]                    
Amortization during the period   $ (835) (217)              
Intangible Assets [Roll Forward]                    
Balance, beginning of period   3,055 3,100              
Acquisitions during the period   6,947 172              
Amortization during the period   (835) (217)              
Write-offs during the period   (529) 0              
Balance, end of period 8,638 8,638 3,055 3,100            
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Amount Upon Acquisition   3,539                
Accumulated amortization         (1,335)     (484)    
Accumulated impairment         (529)          
Balance at the end of the period 10,502 10,502 3,539              
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization $ 8,638 $ 3,055 $ 3,100 $ 3,100 $ 8,638     $ 3,055    
Other [Member] | EPS Financial, LLC [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   3 years                
Other [Member] | Specialty Consumer Services [Member]                    
Amortization of Intangible Assets Roll Forward [Roll Forward]                    
Book Amortization Period   15 years                
v3.8.0.1
SUBSEQUENT EVENTS (Details) - USD ($)
$ in Millions
Oct. 11, 2017
Dec. 31, 2016
Subsequent Event [Line Items]    
Purchased student loans   $ 134.0
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Purchased student loans $ 73.0