Bank-owned life insurance

631

650

1,273

1,319

Gain (loss) on sale of securities available-for-sale, net (Includes $231 and ($166) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended March 31, 2019 and 2018, respectively and $209 and ($1,176) for the six months ended March 31, 2019 and 2018, respectively)

231

(166)

209

(1,176)

Gain on sale of loans and leases

1,085

0

1,951

0

Loss on foreclosed real estate

(200)

0

(185)

(19)

Other income

2,679

414

3,556

516

Total noninterest income

105,025

97,419

142,776

126,687

Noninterest expense:

Compensation and benefits

49,164

32,172

82,174

54,512

Refund transfer product expense

7,181

9,871

7,191

9,972

Tax advance product expense

2,225

1,474

2,677

1,754

Card processing

6,971

7,190

14,056

13,730

Occupancy and equipment

7,212

4,477

13,670

9,367

Operating lease equipment depreciation

4,485

0

12,251

0

Legal and consulting

4,308

3,239

8,277

5,655

Marketing

585

668

1,124

1,221

Data processing

321

243

758

657

Intangible amortization

5,596

2,731

9,978

4,412

Impairment expense

9,660

0

9,660

0

Other expense

12,546

6,432

22,733

11,259

Total noninterest expense

110,254

68,497

184,549

112,539

Income before income tax expense

32,803

37,984

47,432

48,338

Income tax (benefit) expense (Includes $58 and ($46) reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, respectively and $52 and ($329) for the six months ended March 31, 2019 and 2018, respectively)

(395)

6,548

(2,086)

12,232

Net income before noncontrolling interest

33,198

31,436

49,518

36,106

Net income attributable to noncontrolling interest

1,078

0

2,000

0

Net income attributable to parent

$ 32,120

$ 31,436

$ 47,518

$ 36,106

Earnings per common share

Basic (in dollars per share)

^[1]

$ 0.81

$ 1.08

$ 1.21

$ 1.24

Diluted (in dollars per share)

^[1]

$ 0.81

$ 1.08

$ 1.20

$ 1.24

Refund transfer product fees

$ 31,601

$ 33,803

$ 31,862

$ 33,995

Tax advance product fees

33,038

33,838

34,723

35,785

Card fees

23,052

26,856

42,403

52,103

Rental income

9,890

0

20,780

0

Total noninterest income

9,890

0

20,780

0

Loan and lease fees

925

1,042

2,173

2,334

Deposit fees

Statement of Stockholders' Equity [Abstract]

$ 2,093

$ 982

$ 4,031

$ 1,830

[1]	All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noninterest income:
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss)	$ 231	$ (166)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss)	$ 58	$ (46)

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income before noncontrolling interest	$ 33,198	$ 31,436	$ 49,518	$ 36,106
Other comprehensive (loss) income:
Change in net unrealized gain (loss) on debt securities	25,089	(35,993)	31,260	(43,472)
(Gain) loss realized in net income	(231)	166	(209)	1,176
Total	24,858	(35,827)	31,051	(42,296)
Unrealized gain (loss) on currency translation	116	0	(245)	0
Deferred income tax effect	6,051	(8,879)	7,484	(11,964)
Total other comprehensive (loss) income	18,923	(26,948)	23,322	(30,332)
Total comprehensive income	52,121	4,488	72,840	5,774
Total comprehensive income attributable to noncontrolling interest	1,078	0	2,000	0
Comprehensive income attributable to parent	$ 51,043	$ 4,488	$ 70,840	$ 5,774

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Parent [Member]	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Noncontrolling Interest
Beginning Balance at Sep. 30, 2017	$ 434,496	$ 434,496	$ 288	$ 258,144	$ 167,164	$ 9,166	$ (266)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(2,517)	(2,517)			(2,517)
Issuance of common shares due to exercise of stock options	147	147		147
Issuance of common shares due to restricted stock	2	2	2
Issuance of common shares due to ESOP	1,606	1,606	1	1,605
Shares repurchased for tax withholdings on stock compensation	(2,126)	(2,126)		(726)			(1,400)
Stock compensation	6,321	6,321		6,321
Total other comprehensive income	(30,332)	(30,332)				(30,332)
Net income	36,106	36,106			36,106
Ending Balance at Mar. 31, 2018	443,703	443,703	291	265,491	200,753	(21,166)	(1,666)	0
Beginning Balance at Dec. 31, 2017	437,705	437,705	290	262,678	170,578	5,782	(1,623)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(1,261)	(1,261)			(1,261)
Issuance of common shares due to exercise of stock options	147	147		147
Issuance of common shares due to restricted stock	1	1	1
Shares repurchased for tax withholdings on stock compensation	(455)	(455)		(412)			(43)
Stock compensation	3,078	3,078		3,078
Total other comprehensive income	(26,948)	(26,948)				(26,948)
Net income	31,436	31,436			31,436
Ending Balance at Mar. 31, 2018	443,703	443,703	291	265,491	200,753	(21,166)	(1,666)	0
Beginning Balance at Sep. 30, 2018	747,726	744,152	393	565,811	213,048	(33,111)	(1,989)	3,574
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(3,943)	(3,943)			(3,943)
Issuance of common shares due to exercise of stock options	54	54		54
Issuance of common shares due to restricted stock	3	3	3
Issuance of common shares due to ESOP	2,010	2,010		2,010
Shares repurchased for tax withholdings on stock compensation	(2,967)	(2,967)	(1)	1			(2,967)	0
Stock compensation	8,530	8,530		8,530
Total other comprehensive income	23,322	23,322				23,322
Net income	49,518	47,518			47,518			2,000
Net investment by (distribution to) noncontrolling interests	(2,046)							(2,046)
Ending Balance at Mar. 31, 2019	823,709	820,181	395	576,406	258,600	(10,264)	(4,956)	3,528
Beginning Balance at Dec. 31, 2018	770,728	767,461	394	572,156	228,453	(29,186)	(4,356)	3,267
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(1,973)	(1,973)			(1,973)
Issuance of common shares due to exercise of stock options	1	1	1
Shares repurchased for tax withholdings on stock compensation	(600)	(600)		0			(600)
Stock compensation	4,250	4,250		4,250
Total other comprehensive income	18,922	18,922				18,922
Net income	33,198	32,120			32,120			1,078
Net investment by (distribution to) noncontrolling interests	(817)							(817)
Ending Balance at Mar. 31, 2019	$ 823,709	$ 820,181	$ 395	$ 576,406	$ 258,600	$ (10,264)	$ (4,956)	$ 3,528

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares

6 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Cash dividends declared on common stock (in dollars per share)

^[1]

$ 0.05

$ 0.04

[1]	See Notes to Condensed Consolidated Financial Statements.(1)All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 49,518	$ 36,106
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	28,933	19,183
Stock compensation	8,530	6,321
Provision (recovery):
Loan and lease losses	42,417	19,411
Deferred taxes	(7,811)	126
Loans held for sale:
Originations	(42,961)	0
Purchases	(5,940)	0
Proceeds from sales	36,461	0
Net change	8,760	0
Fair value adjustment of foreclosed real estate	0	23
Net realized (gain) loss:
Other assets	(46)	(15)
Foreclosed real estate or other assets	185	19
Available for sale securities, net	(209)	1,176
Loans held for sale	(1,650)	0
Leases receivable and rental equipment	(1,985)	0
Net change:
Other assets	(16,226)	(14,472)
Accrued interest payable	1,445	(965)
Accrued expenses and other liabilities	21,951	36,779
Accrued interest receivable	1,735	1,776
Change in bank-owned life insurance value	(1,272)	(1,319)
Impairment on rental equipment	6,194	0
Impairment of intangibles	111	0
Net cash provided by operating activities	128,140	104,149
Available for sale securities:
Purchases	(222,436)	(323,995)
Proceeds from sales	534,779	126,373
Proceeds from maturities and principal repayments	66,417	71,652
Held to maturity:
Proceeds from maturities and principal repayments	16,225	19,863
Loans and leases:
Purchases	(144,104)	(88,986)
Proceeds from sales	10,857	9,582
Net change	(399,380)	(143,766)
Proceeds from sales of foreclosed real estate or other assets	1,905	122
Federal Home Loan Bank stock:
Purchases	(358,516)	(477,604)
Redemption	374,480	520,880
Rental equipment:
Purchases	(58,968)	0
Proceeds from sales	4,962	0
Net change	674	0
Premises and equipment:
Purchases	(8,815)	(3,689)
Proceeds from sales	101	0
Net cash (used in) investing activities	(181,819)	(289,568)
Cash flows from financing activities:
Checking, savings, and money market deposits	712,896	464,084
Time deposits	(121,887)	(51,925)
Wholesale deposits	(49,777)	(295,086)
FHLB and other borrowings	0	(385,000)
Federal funds	(422,000)	(703,000)
Securities sold under agreements to repurchase	(890)	(758)
Net investment by (distribution to) noncontrolling interests	(2,046)	0
Proceeds from other liabilities	5,027	0
Other liabilities	(6,032)	0
Capital lease obligations	(40)	(31)
Cash dividends paid	(3,943)	(2,517)
Purchase of shares by ESOP	2,010	1,606
Issuance of restricted stock	3	2
Proceeds from exercise of stock options & issuance of common stock	54	147
Shares repurchased for tax withholdings on stock compensation	(2,967)	(2,126)
Net cash provided by (used in) financing activities	110,408	(974,604)
Effect of exchange rate changes on cash	(245)	0
Net change in cash and cash equivalents	56,484	(1,160,023)
Cash and cash equivalents at beginning of year	99,977	1,267,586
Cash and cash equivalents at end of year	156,461	107,563
Supplemental disclosure of cash flow information
Interest	18,389	9,662
Income taxes	1,218	3,966
Franchise taxes	73	66
Other taxes	465	153
Supplemental schedule of non-cash investing activities:
Loans and leases to foreclosed real estate or other assets	0	(29,922)
Loans transferred to held for sale	39,452	0
Loans transferred to held for sale	0	0
Securities transferred from held-to-maturity to available-for-sale	0	(306,000)
Short and long term debt transferred from other liabilities	$ 20,026	$ 0

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2018 included in Meta Financial Group, Inc.’s (“Meta” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 29, 2018. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted. The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and six month periods ended March 31, 2019 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2019. All share and per share data reported in this Form 10-Q has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income. Certain amounts in the Recorded Investment table presented in Note 4 to the consolidated financial statements have been restated from what was previously reported as of September 30, 2018 on Form 10-K. Loan and lease tables have been conformed to be consistent with the Company's updated presentation of its lending portfolio. The new presentation includes expanding the commercial and consumer finance portfolio to present the lending categories that are included in each, presenting the warehouse finance portfolio as its own category, and condensing the community bank loan categories. Warehouse finance loans were previously included in the consumer finance portfolio. All current and prior period numbers are reflective of this new presentation and total loan and lease balances remained unchanged.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES (ASU)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2018 remain substantially unchanged with the exception of the policies impacted by the adoption of noted ASUs below.

Adopted ASUs

Revenue Recognition - The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), subsequent related Updates (collectively, ASU 2014-09), and ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Prepaid Stored-Value Products on October 1, 2018. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative-effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s Meta Payment Systems (MPS) division. Refer to Note 12. Revenue from Contracts with Customers for additional information.

Financial Instruments - The Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities and related Updates (collectively, ASU 2016-01) on October 1, 2018. ASU 2016-01 makes several revisions to Subtopic 825-10, including that ASU 2016-01: (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies impairment assessment of equity investments without readily determinable fair value, (3) eliminates requirement to disclose methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost, (4) requires the use of an exit price notion when measuring fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet and accompanying notes. Upon adoption, the Company recorded a cumulative-effect adjustment that reclassed $0.5 million, net of tax, from accumulated other comprehensive income to retained earnings, due to the Company’s cumulative change in fair value of equity securities with readily determinable fair value. Refer to Note 6. Securities for additional information.

The Company also adopted the following ASUs on October 1, 2018, none of which had a material impact on the Company’s consolidated financial statements.


–	ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments


–	ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash


–	ASU 2017-01, Clarifying the Definition of a Business


–	ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment


–	ASU 2017-05, Other Income - Gains and Losses from Derecognition of Non-Financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and accounting for Partial Sales of Non-Financial Assets


–	ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

ASUs to be Adopted

Leases - ASU 2016-02, Leases (Topic 842), and related Updates (collectively Topic 842) will become effective for the Company on October 1, 2019. For lessees, Topic 842 establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with such classification affecting the pattern and classification of expense recognition in the income statement. For lessors, the guidance with Topic 842 is largely unchanged from current guidance.

A modified retrospective transition approach is required. An entity may choose to use either (1) the standard’s effective date or (2) the beginning of the earliest comparative period presented in the financial statements, as the date of initial application. The Company expects to adopt Topic 842 using the effective date, October 1, 2019, as the date of initial application. Consequently, financial information will not be updated and disclosures required under Topic 842 will not be provided for dates and periods before October 1, 2019.

FASB has released several updates to Topic 842 through subsequent ASUs, many of which allow for practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements, with the latter not being applicable to the Company. The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company expects to elect the short-term lease recognition exemption for all leases that qualify. The Company (as a lessee and lessor) also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify.

As a lessee, the Company expects Topic 842 to have a material effect on its financial statements. While the Company continues to assess the effects of adoption, the Company believes the significant effects will relate to (1) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s office and equipment operating leases; (2) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s service contracts that meet the revised definition of a lease under Topic 842; and (3) providing significant new disclosures about the Company’s leasing activities. The Company is currently implementing a methodology and process to estimate and account for the ROU assets and lease liabilities.

As a lessor, the Company continues to assess the effects of adoption, however the Company believes the significant effects will relate to (1) earlier recognition of expense due to a narrower definition of initial direct costs; (2) gross presentation of costs excluded from contract consideration that are reimbursed by the lessee as revenue and expenses on the income statement; and (3) presentation of leasing activities on the Company’s financial statements. The Company is currently in the process of implementing a new lease accounting system, processes and procedures to reflect the new standard.

Other Upcoming ASUs - Refer to the Company’s most recently audited consolidated financial statements for the year ended September 30, 2018 for the latest update on ASUs relevant to the Company and not yet adopted as of March 31, 2019.

ACQUISITIONS

6 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

ACQUISITIONS

The Company acquired Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank, on August 1, 2018 for a purchase price of $295.8 million paid by issuance of 9,919,512 shares of Meta common stock. The initial accounting for certain liabilities and goodwill were incomplete and the amounts recorded were considered provisional. The Company recognized certain measurement period adjustments as disclosed below during the three months ended March 31, 2019. The amount of goodwill recorded remains provisional, as well as the other assets and liabilities noted in the table below, as more information becomes available related to DC Solar. The measurement period remains open for the Crestmark acquisition until August 1, 2019. The following table summarizes the allocation of the purchase price to net assets of Crestmark as of the August 1, 2018 acquisition date.



(Dollars in Thousands)	Estimated fair value as previously reported^(a)		Measurement period adjustments			Fair value as adjusted
Rental Equipment	$	98,977	$	(3,355	)	$	95,622
Intangible assets	28,253		(117		)	28,136
Goodwill	204,547		4,194			208,742
Accrued expenses and other liabilities	88,301		723			89,024
Net other assets	55,464		—			55,464
Noncontrolling interest	3,167		—			3,167
Purchase price	295,773		—			295,773

^(a)As previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018

Measurement Period Adjustments and Impairment - DC Solar

The Company previously purchased a portfolio of mobile solar generators ("MSGs") from DC Solar Solutions, Inc. and certain of its affiliates, a relationship in the Company's solar leasing business, and, in turn, leased the MSGs to DC Solar Distribution, Inc., an affiliate of DC Solar Solutions. During the second fiscal quarter of 2019, the Company became aware that the DC Solar entities and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. The Company had three separate operating leases with DC Solar - two of the transactions were included in the acquired Crestmark balances on August 1, 2018. The third transaction was originated in August 2018 after the Crestmark acquisition date. The Company considered the bankruptcy filing and fraud allegations as new facts and circumstances and concluded the alleged fraud existed at the acquisition date for the acquired DC Solar transactions. As a result, the identified impairment for the acquired DC Solar transactions and other related adjustments were recorded as measurement period adjustments to the acquired assets and liability amounts recognized and were offset through provisional goodwill. The impairment and related adjustments for the DC Solar transaction originated post-acquisition are reflected in current earnings.

The Company continues to gather information about the situation and, as of the date of this filing, has identified and located 175 of 176 of the underlying assets, however the timing and extent to which the Company will be able to recover and re-lease the underlying assets remains uncertain, due in part to claims by third parties as to their potential interests in the underlying assets. The adjustments to goodwill and impairment recognized for the DC Solar events reflect the Company's best estimate of the potential loss incurred, based on the Company's present understanding of the relevant facts. Assumptions utilized in the estimate included recoverability of the MSGs and the Company's ability to re-lease them, contractual rents, and residual values. As new facts and circumstances become available, the Company will assess any remaining exposure with respect to these DC Solar matters to determine whether additional adjustments to goodwill and/or impairment loss is necessary. As long as the required criteria under GAAP are met, the Company will continue to account for adjustments to the acquired DC Solar transactions as adjustments to goodwill until the measurement period closes, which will not extend beyond August 1, 2019.

The table below reflects the net impact of the foregoing DC Solar matters, based upon the Company's present understanding of the relevant facts and circumstances, to the Company's financial statements at March 31, 2019 and for the three months ended March 31, 2019.



		Increase (Decrease)
Balance Sheet:		(Dollars in Thousands)
	Operating lease equipment	$	(12,589	)
	Goodwill	1,968
	Other assets	(394		)
	Liabilities	(4,461		)
	Total balance sheet impact	$	(6,554	)

	Regulatory capital impact	$	(8,522	)

		Income (Expense)
Income Statement:
	Rental income	$	1,633
	Other income	315
	Impairment	(9,549		)
	Income tax benefit	1,047
	Impact to net income	$	(6,554	)

Measurement Period Adjustments - Other

The Company recorded additional measurement period adjustments in the second fiscal quarter of 2019 for provisional tax and compensation liabilities assumed through the Crestmark acquisition. The Company obtained additional information about facts and circumstances existing at the Crestmark acquisition date that resulted in an increase to liabilities and goodwill recognized of $2.2 million.

LOANS AND LEASES, NET

6 Months Ended

Mar. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

LOANS AND LEASES, NET

Loan and lease tables have been conformed to be consistent with the Company's updated categorization of its lending portfolio between National Lending and Community Banking.

Loans and leases at March 31, 2019 and September 30, 2018 were as follows:



	March 31, 2019			September 30, 2018
National Lending	(Dollars in Thousands)
Asset based lending	$	572,210		$	477,917
Factoring	287,955			284,221
Lease financing	321,414			265,315
Insurance premium finance	307,875			337,877
SBA/USDA	77,481			59,374
Other commercial finance	98,956			85,145
Commercial finance	1,665,891			1,509,849
Consumer credit products	139,617			80,605
Other consumer finance	170,824			189,756
Consumer finance⁽¹⁾	310,441			270,361
Tax services	84,824			1,073
Warehouse finance⁽¹⁾	186,697			65,000
Total National Lending	2,247,853			1,846,283
Community Banking
Commercial real estate and operating	869,917			790,890
Consumer one-to-four family real estate and other	257,079			247,318
Agricultural real estate and operating	60,167			60,498
Total Community Banking	1,187,163			1,098,706
Total gross loans and leases	3,435,016			2,944,989

Allowance for loan and lease losses	(48,672		)	(13,040		)
Net deferred loan origination fees (costs)	2,964			(250		)
Total loans and leases, net⁽²⁾	$	3,389,308		$	2,931,699

⁽¹⁾Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

During the six months ended March 31, 2019, the Company transferred $39.5 million of consumer credit product loans to held for sale and originated $43.0 million of SBA/USDA and consumer credit product loans as held for sale. The Company sold held for sale loans resulting in proceeds of $36.5 million and gains on sale of $1.7 million during the six months ended March 31, 2019. During the six months ended March 31, 2018, the Company did not designate any loans as held for sale or sell any held for sale loans.

Loans purchased and sold by portfolio segment, including participation interests, for the three and six months ended March 31, 2019 and 2018 were as follows:



	Three Months Ended				Six Months Ended
	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Loans Purchased	(Dollars in Thousands)
Loans held for sale	$	5,940	$	—	$	5,940	$	—
Loans held for investment:
Total National Lending	10,621		—		125,591		72,751
Total Community Banking	7,432		13,823		18,513		16,235
Total purchases	23,933		13,823		150,044		88,986
Loans Sold
Loans held for sale	28,051		—		34,904		—
Loans held for investment:
Total Community Banking	10,479		3,666		10,857		9,582
Total sales	$	38,530	$	3,666	$	45,761	$	9,582

The net investment in direct financing and sales-type leases is comprised of the following as of March 31, 2019 and September 30, 2018.



	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	366,361		$	301,835
Estimated residual value of leased equipment	11,328			12,406
Unamortized initial direct costs	4,190			1,806
Premium on acquired leases	9			26
Unearned income	(56,266		)	(48,949		)
Net investment in direct financing and sales-type leases	$	325,622		$	267,124

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of March 31, 2019.



	As of March 31, 2019
	(Dollars in thousands)
Remaining in 2019	$	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$	366,361

The Company did not record any contingent rental income from sales-type and direct financing leases in the six months ended March 31, 2019.

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for each of the three and six months ended March 31, 2019 and 2018 was as follows:



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	2,065	$	1,365		$	—		$	69	$	3,499
Factoring	1,062		1,799			(1,125		)	25		1,761
Lease financing	1,084		1,671			(1,044		)	254		1,965
Insurance premium finance	972		1,797			(1,877		)	27		919
SBA/USDA	253		221			—			—		474
Other commercial finance	291		234			—			—		525
Commercial finance	5,727		7,087			(4,046		)	375		9,143
Consumer credit products	1,151		163			—			—		1,314
Other consumer finance	4,222		3,336			(2,456		)	28		5,130
Consumer finance	5,373		3,499			(2,456		)	28		6,444
Tax services	1,546		22,473			(1		)	84		24,102
Warehouse finance	176		9			—			—		185
Total National Lending	12,822		33,068			(6,503		)	487		39,874
Community Banking
Commercial real estate and operating	6,570		103			—			—		6,673
Consumer one-to-four family real estate and other	719		259			(20		)	—		958
Agricultural real estate and operating	1,179		(112		)	—			100		1,167
Total Community Banking	8,468		250			(20		)	100		8,798
Total	$	21,290	$	33,318		$	(6,523	)	$	587	$	48,672



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	107	$	3,528		$	(262	)	$	126	$	3,499
Factoring	64		3,022			(1,375		)	50		1,761
Lease financing	59		1,542			(1,462		)	1,826		1,965
Insurance premium finance	1,031		1,890			(2,085		)	83		919
SBA/USDA	13		461			—			—		474
Other commercial finance	28		497			—			—		525
Commercial finance	1,302		10,940			(5,184		)	2,085		9,143
Consumer credit products	785		529			—			—		1,314
Other consumer finance	2,820		6,359			(4,079		)	30		5,130
Consumer finance	3,605		6,888			(4,079		)	30		6,444
Tax services	—		23,969			(43		)	176		24,102
Warehouse finance	65		120			—			—		185
Total National Lending	4,972		41,917			(9,306		)	2,291		39,874
Community Banking
Commercial real estate and operating	6,220		453			—			—		6,673
Consumer one-to-four family real estate and other	632		346			(20		)	—		958
Agricultural real estate and operating	1,216		(299		)	—			250		1,167
Total Community Banking	8,068		500			(20		)	250		8,798
Total	$	13,040	$	42,417		$	(9,326	)	$	2,541	$	48,672



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	725	$	214		$	(339	)	$	146	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	729		214			(339		)	146		750
Tax services	1,435		18,129			—			9		19,573
Total National Lending	2,164		18,343			(339		)	155		20,323
Community Banking
Commercial real estate and operating	3,149		951			—			—		4,100
Consumer one-to-four family real estate and other	665		233			—			3		901
Agricultural real estate and operating	1,984		(1,273		)	—			54		765
Unallocated	900		89			—			—		989
Total Community Banking	6,698		—			—			57		6,755
Total	$	8,862	$	18,343		$	(339	)	$	212	$	27,078



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	796	$	265		$	(468	)	$	153	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	800		265			(468		)	153		750
Tax services	5		19,146			—			422		19,573
Total National Lending	805		19,411			(468		)	575		20,323
Community Banking
Commercial real estate and operating	2,820		1,280			—			—		4,100
Consumer one-to-four family real estate and other	809		120			(31		)	3		901
Agricultural real estate and operating	2,574		(1,863		)	—			54		765
Unallocated	526		463			—			—		989
Total Community Banking	6,729		—			(31		)	57		6,755
Total	$	7,534	$	19,411		$	(499	)	$	632	$	27,078



	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	62	$	3,437	$	3,499	$	5,965	$	566,245	$	572,210
Factoring	12		1,749		1,761		6,034		281,921		287,955
Lease financing	67		1,898		1,965		2,299		319,115		321,414
Insurance premium finance	—		919		919		—		307,875		307,875
SBA/USDA	—		474		474		—		77,481		77,481
Other commercial finance	—		525		525		—		98,956		98,956
Commercial finance	141		9,002		9,143		14,298		1,651,593		1,665,891
Consumer credit products	—		1,314		1,314		—		139,617		139,617
Other consumer finance	—		5,130		5,130		1,236		169,588		170,824
Consumer finance	—		6,444		6,444		1,236		309,205		310,441
Tax services	—		24,102		24,102		—		84,824		84,824
Warehouse finance	—		185		185		—		186,697		186,697
Total National Lending	141		39,733		39,874		15,534		2,232,319		2,247,853
Community Banking
Commercial real estate and operating	—		6,673		6,673		—		869,917		869,917
Consumer one-to-four family real estate and other	—		958		958		134		256,945		257,079
Agricultural real estate and operating	—		1,167		1,167		1,220		58,947		60,167
Total Community Banking	—		8,798		8,798		1,354		1,185,809		1,187,163
Total	$	141	$	48,531	$	48,672	$	16,888	$	3,418,128	$	3,435,016



	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment⁽¹⁾		Ending balance: collectively evaluated for impairment⁽¹⁾		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan and lease 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.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.

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

The asset classification of loans and leases at March 31, 2019 and September 30, 2018 were as follows:



Asset Classification	Pass		Watch		Special Mention		Substandard		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	493,351	$	—	$	72,894	$	5,965	$	572,210
Factoring	237,880		—		44,041		6,034		287,955
Lease financing	303,742		—		14,652		3,020		321,414
Insurance premium finance	307,875		—		—		—		307,875
SBA/USDA	63,428		—		14,053		—		77,481
Other commercial finance	98,380		—		576		—		98,956
Commercial finance	1,504,656		—		146,216		15,019		1,665,891
Consumer credit products	139,617		—		—		—		139,617
Other consumer finance	170,824		—		—		—		170,824
Consumer finance	310,441		—		—		—		310,441
Tax services	84,824		—		—		—		84,824
Warehouse finance	186,697		—		—		—		186,697
Total National Lending	2,086,618		—		146,216		15,019		2,247,853
Community Banking
Commercial real estate and operating	857,897		6,672		5,348		—		869,917
Consumer one-to-four family real estate and other	253,698		2,999		306		76		257,079
Agricultural real estate and operating	43,260		5,331		3,038		8,538		60,167
Total Community Banking	1,154,855		15,002		8,692		8,614		1,187,163
Total loans and leases	$	3,241,473	$	15,002	$	154,908	$	23,633	$	3,435,016



Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

National Lending (Commercial Finance, Consumer Finance, Tax Services and Warehouse Finance)

Commercial Finance

The Company's commercial finance product lines include asset-based lending, factoring, leasing, commercial insurance premium finance, and other commercial finance products offered on a nationwide basis. Asset-based lending and factoring primarily service small businesses that are startups, distressed and/or generally that may not otherwise qualify for traditional bank financing. Leasing focuses on providing equipment finance solutions to mid-market companies. These product offerings supplement the asset generation capacity in our community bank and tax services divisions and enhance the overall yield of our loan and lease portfolio, enabling us to earn attractive risk-adjusted net interest margins.

Asset-Based Lending. Through its Crestmark division, the Bank provides asset-based loans secured by debtors' short-term assets such as inventory, accounts receivable, and work-in-process. Asset-based loans may also be secured by real estate and equipment. The primary sources of repayment are the operating income of the borrower, the collection of the receivables securing the loan, and/or the sale of the inventory securing the loan. Loans are typically revolving lines of credit with terms of one to three years, whereby the Bank withholds a contingency reserve representing the difference between the amount advanced and the fair value of the invoice amount or other collateral value. Credit risk is managed through advance rates appropriate for the collateral, standardized loan policies, established and authorized credit limits, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the debtors' cash receipts. The Bank also originates collateralized term loans and notes receivable, with terms ranging from three to 25 years.

Factoring. Through its Crestmark division, the Bank provides factoring lending where clients provide detailed inventory, accounts receivable, and work-in-process reports for lending arrangements. The factoring clients are diversified as to industry and geography. With these loans, the Crestmark division withholds a contingency reserve, which is the difference between the fair value of the invoice amount or other collateral value and the amount advanced. This reserve is withheld for nonpayment of factored receivables, service fees and other adjustments. Credit risk is managed through standardized advance policies, established and authorized credit limits, verification of receivables, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the client's cash receipts. In addition, clients generally guarantee the payment of purchased accounts receivable.

Lease Financing. Through its Crestmark division, the Bank provides creative, flexible lease solutions for technology, capital equipment and select transportation assets like tractors and trailers. Direct financing leases and sales-type leases substantially transfer the benefits and risks of equipment ownership to the lessee. The lease may contain provisions that transfer ownership to the lessee at the end of the initial term, contain a bargain purchase option or allow for purchase of the equipment at fair market value. Residual values are estimated at the inception of the lease. Lease maturities are generally no greater than 84 months. The focus in this lease financing category is to support middle market companies by providing a variety of financing products to help them meet their business objectives.

Insurance Premium Finance. Through its AFS/IBEX division the Bank provides, on a national basis, short-term, primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk, otherwise known as insurance premium financing. This includes, but is not limited to, policies for commercial property, casualty and liability risk. Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term. The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to 10 months on average. The down payment is set such that if the policy is canceled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.

Small Business Administration ("SBA") and United States Department of Agriculture ("USDA"). The Bank originates loans through programs partially guaranteed by the SBA or USDA. These loans are made to small businesses and professionals with what the Bank believes are lower risk characteristics.

Other Commercial Finance. Included in this category of loans are the Company's healthcare receivables loan portfolio primarily comprised of loans to individuals for medical services received. The majority of these loans are guaranteed by the hospital providing the service to the debtor and this guarantee serves to reduce credit risk as the guarantors agree to repurchase severely delinquent loans. Credit risk is minimized on these loans based on the guarantor’s repurchase agreement. This loan category also includes commercial real estate loans to customers of the Crestmark division.

Consumer Finance

Consumer Credit Products. Through the acquisition of Specialty Consumer Services, the Bank acquired a platform that provides a total solution for marketplace lending, including underwriting and loan management in the direct-to-consumer credit business. The acquired platform allows the Bank to provide innovative lending solutions through consumer credit products. The Company designs and structures its credit programs in an effort to insulate the Company from program losses and to potentially increase the liquidity attributes of such lending programs' marketability to potential bank or other purchasers. While each program is different, all contain one or more types of credit enhancements, loss protections, or trigger events. When determining the applicable program enhancement, generally, the Company uses proprietary data provided by the Company’s partner, with respect to such program, supplemented with public data to design and shape appropriate loss curves, as well as implement stresses significantly higher than base to provide protection in changing credit cycles. Credit enhancements are typically built through holding excess program interest and fees in a reserve account to pay program credit losses. Cash flow waterfall positioning allows for losses and Company program principal and interest to be paid, under certain circumstances, before servicing or other program expenses. Trigger events allow programs and originations to be suspended if certain vintage loss limits, during a specific period of time, are triggered or if cumulative loss percentages are triggered. These triggers are designed to allow the Company to address potential issues quickly. Other trigger events in certain programs provide for excess credit or reserve enhancements, which could be beyond excess interest amounts, if certain loss triggers are breached. The Bank applies a reserve for loan losses of approximately 1% on outstanding loan balances within each of the consumer credit product programs.

Through March 31, 2019, the Bank has launched two consumer credit programs. During the second quarter of fiscal 2018, the Bank entered into a three-year program agreement with Liberty Lending, LLC ("Liberty Lending") whereby the Bank provides personal loans to Liberty Lending customers. The Bank and Liberty Lending market the program jointly through a wide variety of marketing channels. The loan products under the agreement with Liberty Lending are closed-end installment loans ranging from $3,500 to $45,000 in initial principal amount with durations of between 13 and 60 months.

The Bank entered into a three-year agreement with Health Credit Services ("HCS") during the third quarter of fiscal 2018. The Bank approves and originates loans for elective medical procedures for select HCS provider offices throughout the United States. HCS works with its provider partners to market the loans, as well as provide servicing for them. The loan products offered are unsecured, closed-end installment loans with terms between 12 and 84 months and revolving lines of credit with durations between six and 60 months.

Other Consumer Finance. The Bank's purchased student loan portfolios are seasoned, floating rate, private portfolios that are serviced by a third-party servicer. The portfolio purchased during the first quarter of fiscal year 2018 is indexed to one-month LIBOR, while the portfolio purchased in the first quarter of fiscal year 2017 is indexed to three-month LIBOR plus various margins. The Company received written notification on June 18, 2018 from ReliaMax Surety Company ("ReliaMax"), the company that provided insurance coverage for the student loan portfolios, which informed policy holders that the South Dakota Division of Insurance filed a petition to have ReliaMax declared insolvent and to adopt a plan of liquidation. An Order of Liquidation was entered on June 27, 2018 by the Sixth Circuit Court in Hughes County, South Dakota, declaring ReliaMax insolvent and appointing the South Dakota Division of Insurance as liquidator to adopt a plan of liquidation. The Company expects to ultimately recover a portion of the unearned premiums, which could take a year or longer.

Tax Services

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

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

Warehouse Finance

In fiscal 2018, the Bank entered into a first-out participation agreement in a consumer receivable asset-backed warehouse line of credit, with the Bank holding a senior collateral position enhanced by a subordinate party structure. During the first quarter of fiscal 2019, the Bank entered into two additional first-out participation agreements in asset-backed warehouse lines of credit, including consumer loan receivables and small business loan receivables. The senior collateral position of the Bank is supported by a subordinate party position.

Community Banking

Commercial Real Estate and Operating. The Company engages in commercial and multi-family real estate lending in the community bank's primary market areas and surrounding areas. These loans are secured primarily by apartment buildings, office buildings, and hotels. Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property securing the loan, and are typically secured by guarantees of the borrowers. The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio. Commercial and multi-family real estate loans provide for a margin over a number of different indices. In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers.

The repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

The Company originates its community banking commercial operating loans primarily in its market areas. Most of these commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable. Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year.

The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s management ability, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s current credit analysis. Commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment). The Company’s commercial operating loans are usually secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

Consumer One-to-Four Family Real Estate and Other. One-to-four family real estate loan originations are typically generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate loans and adjustable-rate mortgage ("ARM") loans for both permanent structures and those under construction. The Company’s one-to-four family real estate loan originations are secured primarily by properties located in the community bank's primary market areas and surrounding areas.

The Company originates one-to-four family real estate loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the property securing the loan or the contract price. However, the vast majority of these loans are originated with loan-to-value ratios below 80%. The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level. Due to consumer demand, the Company also offers fixed-rate mortgage loans with terms up to 30 years, which may conform to secondary market standards such as those imposed by Fannie Mae, Ginnie Mae, and Freddie Mac. The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales. The Company also currently offers five- and ten-year ARM loans.

In underwriting one-to-four family real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors of the Company. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Company generally contain a “due on sale” clause that allows the Company to declare the unpaid principal balance due and payable upon the sale of the security property. The Company has not engaged in sub-prime residential mortgage originations.

The Company originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans, as well as loans secured by savings deposits in its primary market areas and surrounding areas. Substantially all of the Company’s home equity loans and lines of credit are secured by second mortgages on principal residences. The Bank will lend amounts that, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan. Home equity loans and lines of credit generally have maximum terms of five years.

Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount.

Agricultural Real Estate and Operating. The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer, and other farm-related products, primarily in its market areas. Agricultural operating loans are originated at either an adjustable- or fixed-rate of interest for up to a one-year term or, in the case of livestock, are due upon sale. Agricultural real estate loans are frequently originated with adjustable rates of interest. Generally, such loans provide for a fixed rate of interest for the first five to 10 years, after which the loan will balloon or the interest rate will adjust annually. These loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans typically have terms up to 10 years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.

Payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. The success of the loan may also be affected by many factors outside the control of the borrower such as weather, government support programs and grain and livestock prices. These risks may be reduced, by the farmer, with the use of crop insurance coverage and futures contracts or options to mitigate price risk, both of which the Company frequently requires of the borrowers to help ensure loan repayment. Many farms are also dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm.

Past due loans and leases at March 31, 2019 and September 30, 2018 were as follows:



	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	799	$	1,712	$	78	$	2,589	$	569,621	$	572,210	$	—	$	266	$	266
Factoring	—		—		—		—		287,955		287,955		—		716		716
Lease financing	9,291		1,227		1,761		12,279		309,135		321,414		645		1,802		2,447
Insurance premium finance	2,009		767		1,640		4,416		303,459		307,875		1,640		—		1,640
SBA/USDA	1,078		—		—		1,078		76,403		77,481		—		—		—
Other commercial finance	—		—		—		—		98,956		98,956		—		—		—
Commercial finance	13,177		3,706		3,479		20,362		1,645,529		1,665,891		2,285		2,784		5,069
Consumer credit products	1,080		667		420		2,167		137,450		139,617		420		—		420
Other consumer finance	1,256		504		1,853		3,613		167,211		170,824		1,853		—		1,853
Consumer finance	2,336		1,171		2,273		5,780		304,661		310,441		2,273		—		2,273
Tax services	667		—		—		667		84,157		84,824		—		—		—
Warehouse finance	—		—		—		—		186,697		186,697		—		—		—
Total National Lending	16,180		4,877		5,752		26,809		2,221,044		2,247,853		4,558		2,784		7,342
Community Banking
Commercial real estate and operating	271		—		—		271		869,646		869,917		—		—		—
Consumer one-to-four family real estate and other	110		250		76		436		256,643		257,079		—		76		76
Agricultural real estate and operating	—		—		2,200		2,200		57,967		60,167		2,200		—		2,200
Total Community Banking	381		250		2,276		2,907		1,184,256		1,187,163		2,200		76		2,276
Total Loans and Leases	$	16,561	$	5,127	$	8,028	$	29,716	$	3,405,300	$	3,435,016	$	6,758	$	2,860	$	9,618



	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

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

When analysis of borrower or lessee 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 or lease is evaluated for impairment. Often, this is associated with a delay or shortfall in scheduled payments, as described above.

Impaired loans and leases at March 31, 2019 and September 30, 2018 were as follows:



March 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	4,887	$	5,399	$	—
Factoring	6,009		7,084		—
Lease financing	2,209		2,209		—
Commercial finance	13,105		14,692		—
Other consumer finance	1,236		1,304		—
Consumer finance	1,236		1,304		—
Total National Lending	14,341		15,996		—
Community Banking
Consumer one-to-four family real estate and other	134		153		—
Agricultural real estate and operating	1,220		1,220		—
Total Community Banking	1,354		1,373		—
Total	$	15,695	$	17,370	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	1,078	$	1,078	$	62
Factoring	25		25		12
Lease financing	90		90		67
Commercial finance	1,193		1,193		141
Total National Lending	1,193		1,193		141
Total	$	1,193	$	1,193	$	141



September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

The following table provides the average recorded investment in impaired loans and leases for the three and six month periods ended March 31, 2019 and 2018.



Three Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	3,569	$	95	$	—	$	—
Factoring	3,131		—		—		—
Lease financing	4,100		7		—		—
Commercial finance	10,800		102		—		—
Other consumer finance	1,232		10		—		—
Consumer finance	1,232		10		—		—
Total National Lending	12,032		112		—		—
Community Banking
Commercial real estate and operating	268		—		705		5
Consumer one-to-four family real estate and other	137		—		229		6
Agricultural real estate and operating	1,414		10		1,680		50
Total Community Banking	1,819		10		2,614		61
Total loans and leases	$	13,851	$	122	$	2,614	$	61



Six Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	2,648	$	174	$	—	$	—
Factoring	2,956		5		—		—
Lease financing	5,842		17		—		—
Commercial finance	11,446		196		—		—
Other consumer finance	1,227		10		—		—
Consumer finance	1,227		10		—		—
Total National Lending	12,673		206		—		—
Community Banking
Commercial real estate and operating	336		4		840		10
Consumer one-to-four family real estate and other	138		2		165		9
Agricultural real estate and operating	1,443		35		1,015		64
Total Community Banking	1,917		41		2,020		83
Total loans and leases	$	14,590	$	247	$	2,020	$	83

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $1.5 million of national lending loans and leases that were modified in a TDR during the three months ended March 31, 2019, all of which were modified to extend the term of the loan, and no community banking loans that were modified in a TDR. There were $2.6 million of community banking loans that were modified in a TDR during the three months ended March 31, 2018.

There were $1.6 million of national lending loans and leases and $0.1 million of community banking loans that were modified in a TDR during the six months ended March 31, 2019, all of which were modified to extend the term of the loan. There were $3.8 million of community banking loans that were modified in a TDR during the six months ended March 31, 2018. During the six months ended March 31, 2019, the Company had $0.9 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default. During the six months ended March 31, 2018, the Company had $0.1 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default.

At March 31, 2019, foreclosed and repossessed assets totaled $29.5 million, compared to $31.6 million at September 30, 2018. There were no impairments on or valuation allowances established for any foreclosed and repossess assets at either date. The Company did not have any loans or leases in the process of foreclosure at March 31, 2019.

EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

Earnings per common share is computed after deducting any preferred dividends, if applicable. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation. Basic earnings per common share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in earnings per share calculations. The share and per share amounts for fiscal year 2018 have been restated to reflect the 3-for-1 forward stock split of the Company's common stock that was effected by the Company on October 4, 2018.

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and six months ended March 31, 2019 and 2018 is presented below.



Three Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Basic income per common share	0.81		1.08

Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Outstanding options - based upon the two-class method	67,237		118,956
Weighted average diluted common shares outstanding	39,496,832		29,180,136
Diluted income per common share	0.81		1.08



Six Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Basic income per common share	1.21		1.24

Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Outstanding options - based upon the two-class method	68,581		115,038
Weighted average diluted common shares outstanding	39,450,263		29,130,414
Diluted income per common share	1.20		1.24

SECURITIES

6 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

SECURITIES

On October 1, 2018, the Company adopted ASU 2016-01 on a prospective basis, which redefined the definition of equity securities and required their segregation from available for sale debt securities. While changes in the fair value of debt securities continue to be recorded in the equity category of accumulated other comprehensive income, the new guidance requires that changes in fair value of equity securities with readily determinable fair value be recorded in current earnings. As required by the new guidance, the unrealized gain in fair value on equity securities with readily determinable fair value (recorded in accumulated other comprehensive income at September 30, 2018) was reclassified to retained earnings on October 1, 2018. The amount of the reclassification was $0.5 million, net of tax. Equity securities with readily determinable fair value include mutual funds of $1.8 million at cost and $1.9 million at fair value at March 31, 2019.

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at March 31, 2019 and September 30, 2018 are presented below.



At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	163,621	$	637	$	(155	)	$	164,103
Obligations of states and political subdivisions	11,432		106		(9		)	11,529
Non-bank qualified obligations of states and political subdivisions	629,732		1,357		(9,447		)	621,642
Asset-backed securities	284,701		1,286		(1,598		)	284,389
Mortgage-backed securities	419,024		1,064		(6,595		)	413,493
Total debt securities AFS	$	1,508,510	$	4,450	$	(17,804	)	$	1,495,156
Common equities and mutual funds⁽¹⁾⁽²⁾	$	3,592	$	619	$	—		$	4,211

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	45,591	$	1	$	(1,255	)	$	44,337
Obligations of states and political subdivisions	17,154		49		(293		)	16,910
Non-bank qualified obligations of states and political subdivisions	1,140,884		826		(31,825		)	1,109,885
Asset-backed securities	310,700		2,585		(257		)	313,028
Mortgage-backed securities	378,301		—		(14,236		)	364,065
Total debt securities AFS	$	1,892,630	$	3,461	$	(47,866	)	$	1,848,225
Common equities and mutual funds⁽¹⁾	3,172		635		(7		)	3,800
Total AFS securities⁽¹⁾	$	1,895,802	$	4,096	$	(47,873	)	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



Held to Maturity
At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	146,992	$	—	$	(5,224	)	$	141,768
Mortgage-backed securities	7,606		—		(210		)	7,396
Total held to maturity securities	$	154,598	$	—	$	(5,434	)	$	149,164



At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	163,893	$	—	$	(10,758	)	$	153,135
Mortgage-backed securities	7,850		—		(422		)	7,428
Total held to maturity securities	$	171,743	$	—	$	(11,180	)	$	160,563

Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary. This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not 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.

For all securities considered temporarily impaired, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.

GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: AFS, HTM or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at March 31, 2019 or September 30, 2018.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and September 30, 2018, were as follows:



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	41,845	$	(29	)	$	27,214	$	(126	)	$	69,059	$	(155	)
Obligations of states and political subdivisions	—		—			2,052		(9		)	2,052		(9		)
Non-bank qualified obligations of states and political subdivisions	10,210		(2		)	448,680		(9,445		)	458,890		(9,447		)
Asset-backed securities	148,254		(1,539		)	12,184		(59		)	160,438		(1,598		)
Mortgage-backed securities	32,722		(13		)	282,789		(6,582		)	315,511		(6,595		)
Total debt securities AFS	$	233,031	$	(1,583	)	$	772,919	$	(16,221	)	$	1,005,950	$	(17,804	)
Common equities and mutual funds⁽¹⁾⁽²⁾	—		—			—		—			—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	43,097	$	(1,255	)	$	—	$	—		$	43,097	$	(1,255	)
Obligations of state and political subdivisions	11,036		(279		)	881		(14		)	11,917		(293		)
Non-bank qualified obligations of states and political subdivisions	626,693		(13,539		)	358,095		(18,286		)	984,788		(31,825		)
Asset-backed securities	146,638		(257		)	—		—			146,638		(257		)
Mortgage-backed securities	121,217		(3,292		)	242,849		(10,944		)	364,066		(14,236		)
Total debt securities AFS	$	948,681	$	(18,622	)	$	601,825	$	(29,244	)	$	1,550,506	$	(47,866	)
Common equities and mutual funds⁽¹⁾	1,818		(7		)	—		—			1,818		(7		)
Total debt AFS securities⁽¹⁾	$	950,499	$	(18,629	)	$	601,825	$	(29,244	)	$	1,552,324	$	(47,873	)

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



Held To Maturity	LESS THAN 12 MONTHS				OVER 12 MONTHS					TOTAL
At March 31, 2019	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	$	—	$	—	$	141,768	$	(5,225	)	$	141,768	$	(5,225	)
Mortgage-backed securities	—		—		7,396		(210		)	7,396		(210		)
Total held to maturity securities	$	—	$	—	$	149,164	$	(5,435	)	$	149,164	$	(5,435	)



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	5,767	$	(287	)	$	147,368	$	(10,471	)	$	153,135	$	(10,758	)
Mortgage-backed securities	—		—			7,428		(422		)	7,428		(422		)
Total held to maturity securities	$	5,767	$	(287	)	$	154,796	$	(10,893	)	$	160,563	$	(11,180	)

At March 31, 2019, the investment portfolio included securities with current unrealized losses that have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because (i) the declines in fair value were due to changes in market interest rates, not in estimated cash flows, (ii) the Company does not intend or has not made a decision to sell these securities and (iii) it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at March 31, 2019.

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below 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 housing related municipal securities, SBA and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.



Securities at Fair Value	AMORTIZED COST		FAIR VALUE
	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)

Due in one year or less	$	1,020	$	1,019
Due after one year through five years	15,058		15,285
Due after five years through ten years	64,894		65,335
Due after ten years	1,008,514		1,000,024
	1,089,486		1,081,663
Mortgage-backed securities	419,024		413,493
Total securities at fair value	$	1,508,510	$	1,495,156



	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)

Due in one year or less	$	2,532	$	2,529
Due after one year through five years	41,415		41,504
Due after five years through ten years	352,099		350,143
Due after ten years	1,118,283		1,089,984
	1,514,329		1,484,160
Mortgage-backed securities	378,301		364,065
Common equities and mutual funds⁽¹⁾	3,172		3,800
Total securities at fair value	$	1,895,802	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



Held To Maturity	AMORTIZED COST		FAIR VALUE
	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)

Due after ten years	$	146,992	$	141,768
	146,992		141,768
Mortgage-backed securities	7,606		7,396
Total held to maturity securities at cost	$	154,598	$	149,164



	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due after ten years	$	163,893	$	153,135
	163,893		153,135
Mortgage-backed securities	7,850		7,428
Total held to maturity securities at cost	$	171,743	$	160,563

Other investments, at cost, which are included in other assets on the consolidated statement of financial condition, include equity securities without a readily determinable fair value and shares of stock in the Federal Home Loan Bank ("FHLB") of Des Moines. Equity securities without a readily determinable fair value totaled $2.4 million at March 31, 2019 and $2.0 million at September 30, 2018, respectively. FHLB of Des Moines stock at March 31, 2019 and September 30, 2018 totaled $7.4 million and $23.4 million, respectively. The decrease in FHLB stock directly correlates with lower short-term borrowings balances at March 31, 2019 compared to September 30, 2018. The Company’s wholly-owned subsidiary, MetaBank, is required by federal law to maintain FHLB stock as a member of FHLB of Des Moines. These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par. Therefore, FHLB stock is less liquid than other marketable equity securities, and the fair value approximates cost. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. No impairment was recognized for such investments for the six months ended March 31, 2019.

RENTAL EQUIPMENT, NET

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

RENTAL EQUIPMENT, NET

Rental equipment was as follows as of March 31, 2019 and September 30, 2018.



	March 31, 2019			September 30, 2018
	(Dollars in thousands)
Computers and IT networking equipment	$	43,896		$	53,035
Motor vehicles and other	59,589			43,505
Office furniture and equipment	3,409			3,590
Solar panels and equipment	81,498			57,242
Total	188,392			157,372

Accumulated depreciation	(48,305		)	(50,082		)
Net book value	$	140,087		$	107,290

During the second quarter of fiscal year 2019, an impairment was recorded related to solar panels and equipment. Please refer to Note 3 for further discussion.

Future minimum lease payments receivable on equipment under operating leases was as follows as of March 31, 2019.



	March 31, 2019
	(Dollars in thousands)
2019	$	12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$	78,395

GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $307.5 million of goodwill as of March 31, 2019. The recorded goodwill is a result of multiple business combinations that have occurred since fiscal year 2015, the most recent being the merger with Crestmark pursuant to the Crestmark acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at a reporting unit level, which is one level below the operating segments.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2019 and 2018 were as follows:



	Payments		Banking		Corporate Services/Other		Total
Goodwill	(Dollars in Thousands)
September 30, 2018	$	87,145	$	216,125	$	—	$	303,270
Acquisitions	—		—		—		—
Measurement Period Adjustments ⁽¹⁾	—		4,194		—		4,194
Impairment	—		—		—		—
March 31, 2019	$	87,145	$	220,319	$	—	$	307,464

September 30, 2017	$	87,145	$	11,578	$	—	$	98,723
Acquisitions	—		—		—		—
Impairment	—		—		—		—
March 31, 2018	$	87,145	$	11,578	$	—	$	98,723

⁽¹⁾The Company recognized measurement period adjustments on provisional goodwill during the second fiscal quarter of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.



	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2018	$	12,987		$	1,297		$	48,455		$	7,980		$	70,719
Acquisitions during the period	—			—			—			78			78
Amortization during the period	(514		)	(235		)	(8,742		)	(487		)	(9,978		)
Write-offs during the period	—			—			—			(313		)	(313		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

Gross carrying amount	$	14,624		$	2,480		$	82,088		$	10,667		$	109,859
Accumulated amortization	(2,151		)	(1,418		)	(32,127		)	(2,750		)	(38,446		)
Accumulated impairment	—			—			(10,248		)	(659		)	(10,907		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

⁽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)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽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 estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining six months of fiscal 2019 and subsequent fiscal years is as follows:



	(Dollars in Thousands)
Remaining in 2019	$	7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Total anticipated intangible amortization	$	60,506

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There was $0.1 million in impairments to intangible assets during the three and six months ended March 31, 2019 and no impairments to intangible assets during the three and six months ended March 31, 2018.

STOCK COMPENSATION

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK COMPENSATION

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

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of non-vested (restricted) shares granted under the Company’s incentive plan is equal to the fair market value of the underlying stock at the grant date. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur.

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the six months ended March 31, 2019:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)	Aggregate Intrinsic Value
	(Dollars in Thousands, Except Per Share Data ⁽¹⁾)
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974
Granted	—		—		—	—
Exercised	(45,132	)	8.95		—	742
Forfeited or expired	(3,027	)	10.60		—	33
Options outstanding, March 31, 2019	107,802		$	8.23	1.47	$	1,235

Options exercisable, March 31, 2019	107,802		$	8.23	1.47	$	1,235



	Number of Shares		Weighted Average Fair Value at Grant
(Dollars in Thousands, Except Per Share Data ⁽¹⁾)
Nonvested (restricted) shares outstanding, September 30, 2018	1,005,813		$	29.89
Granted	296,302		24.84
Vested	(347,354	)	26.78
Forfeited or expired	(1,623	)	26.17
Nonvested (restricted) shares outstanding, March 31, 2019	953,138		$	29.46

⁽¹⁾ All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

At March 31, 2019, stock-based compensation expense not yet recognized in income totaled $15.8 million, which is expected to be recognized over a weighted average remaining period of 3.11 years.

INCOME TAXES

6 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company recorded an income tax benefit of $2.1 million for the six months ended March 31, 2019, resulting in an effective tax rate of (4.40%), compared to an income tax expense of $12.2 million, or an effective tax rate of 25.31%, for the six months ended March 31, 2018. The Company’s effective tax rate is lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2019. The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.



Six Months Ended March 31,	2019			2018
(Dollars in Thousands)
Provision at statutory rate	$	9,541		$	11,857
Tax-exempt income	(1,824		)	(3,728		)
State income taxes	2,143			2,003
Interim period effective rate adjustment	(3,968		)	(1,277		)
Tax credit investments, net - federal	(9,568		)	—
Tax Reform rate adjustment	—			3,635
IRC 162(m) nondeductible compensation	1,561			—
Other, net	29			(258		)
Income tax expense	$	(2,086	)	$	12,232
Effective tax rate	(4.40		%)	25.31		%

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2019
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 that are not reflected in the accompanying Consolidated Financial Statements. At March 31, 2019 and September 30, 2018, unfunded loan commitments approximated $860.4 million and $748.8 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. The Company had no commitments to purchase securities at March 31, 2019 and $1.4 million in commitments to purchase securities at September 30, 2018. The Company had no commitments to sell securities at March 31, 2019 or September 30, 2018. The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. At March 31, 2019 and at September 30, 2018, the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million. This amount is maintained as a separate liability account within other liabilities. Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments. In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. As disclosed in Note 3. Acquisitions, the Company continues to monitor the bankruptcy proceedings and federal investigations of DC Solar. As of the date of the filing of this quarterly report, the Company has not accrued for any additional loss contingencies related to DC Solar as of March 31, 2019. 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 Inter National Bank ("INB") and MetaBank. According to the Petition, NetSpend has informed INB that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs were wound down, there were two accounts with 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 $4.0 million. 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. On February 9, 2018, the Bank’s AFS/IBEX division filed a lawsuit in the United States District Court for the Eastern District of New York captioned AFS/IBEX, a division of MetaBank v. Aegis Managing Agency Limited ("AMA"), Aegis Syndicate 1225 (together with AMA, the "Aegis defendants"), CRC Insurance Services, Inc. ("CRC"), and Transportation Underwriters, Inc. The suit was filed against commercial insurance underwriters and brokers that facilitated the issuance of commercial insurance policies to Red Hook Construction Group-II, LLC (“Red Hook”). The Bank’s position is that both CRC and Transportation Underwriters represented to the Bank that, upon cancellation of the insurance policies prior to their stated terms, any unearned premiums would be refunded. The Bank then provided insurance premium financing to Red Hook, and Red Hook executed a written premium finance agreement pursuant to which Red Hook assigned its rights to any unearned premiums to the Bank. After the policies were cancelled, the Aegis defendants failed to return the unearned insurance premiums totaling just over $1.6 million owed to the Bank under the insurance policies and the premium finance agreement. The Bank is seeking recovery of all amounts to which it is entitled at law or equity and intends to vigorously pursue its claims against the defendants. The Bank was served on December 24, 2018, with a lawsuit captioned The Ohio Valley Bank Company v. MetaBank dba Refund Advantage, Case No. 18 CV 134 in the Court of Common Pleas, Gallia County, Ohio. This action alleges that MetaBank breached a contract with The Ohio Valley Bank Company by terminating the contract before the term expired, resulting in over $3.0 million in damages. The Bank intends to vigorously defend this claim. The Company has established an accrual for this related claim. From time to time, the Company or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or its results of operations, legal proceedings are inherently uncertain and unfavorable resolution of some or all of these matters could, individually or in the aggregate, have a material adverse effect on the Company’s and its subsidiaries’ respective businesses, financial condition or results of operations.

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

On October 1, 2018, the Company adopted Topic 606 on a modified retrospective basis. Prior period amounts have not been adjusted to reflect the adoption of Topic 606 and continue to be reported in accordance with the Company’s historical accounting policies. The impact of the Company’s adoption of Topic 606 was limited to the MPS division within the Payments reporting segment. Upon adoption, Meta recorded a cumulative-effect adjustment that increased retained earnings by $1.5 million, net of tax.

Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Consolidated Financial Statements.



(Dollars in thousands)	Payments				Banking					Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2019		2018		2019			2018		2019		2018			2019			2018
Net interest income⁽¹⁾	$	13,607	$	4,933	$	56,271		$	16,120	$	1,472	$	6,352		$	71,350		$	27,405
Noninterest income:
Refund transfer product fees	31,601		33,803		—			—		—		—			31,601			33,803
Tax advance product fees⁽¹⁾	33,038		33,838		—			—		—		—			33,038			33,838
Card fees	22,960		26,771		92			85		—		—			23,052			26,856
Rental income⁽¹⁾	—		—		9,890			—		—		—			9,890			—
Loan and lease fees⁽¹⁾	—		—		925			1,042		—		—			925			1,042
Bank-owned life insurance⁽¹⁾	—		—		—			—		631		650			631			650
Deposit fees	1,711		879		382			103		—		—			2,093			982
Gain (loss) on sale of securities available-for-sale, net⁽¹⁾	—		—		—			—		231		(166		)	231			(166		)
Gain on sale of loans and leases⁽¹⁾	—		—		1,085			—		—		—			1,085			—
Loss on foreclosed real estate⁽¹⁾	—		—		(200		)	—		—		—			(200		)	—
Other income⁽¹⁾	442		382		1,774			11		463		21			2,679			414
Total noninterest income	89,752		95,673		13,948			1,241		1,325		505			105,025			97,419
Revenue	$	103,359	$	100,606	$	70,219		$	17,361	$	2,797	$	6,857		$	176,375		$	124,824

⁽¹⁾These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.



(Dollars in thousands)	Payments				Banking						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2019		2018		2019			2018			2019		2018			2019			2018
Net interest income⁽¹⁾	$	23,007	$	9,602	$	108,063		$	31,717		$	552	$	12,282		$	131,622		$	53,601
Noninterest income:
Refund transfer product fees	31,862		33,995		—			—			—		—			31,862			33,995
Tax advance product fees⁽¹⁾	34,723		35,785		—			—			—		—			34,723			35,785
Card fees	42,233		51,945		170			158			—		—			42,403			52,103
Rental income⁽¹⁾	—		—		20,780			—			—		—			20,780			—
Loan and lease fees⁽¹⁾	—		—		2,173			2,334			—		—			2,173			2,334
Bank-owned life insurance⁽¹⁾	—		—		—			—			1,273		1,319			1,273			1,319
Deposit fees	3,245		1,607		786			223			—		—			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net⁽¹⁾	—		—		—			—			209		(1,176		)	209			(1,176		)
Gain on sale of loans and leases⁽¹⁾	—		—		1,951			—			—		—			1,951			—
Loss on foreclosed real estate⁽¹⁾	—		—		(185		)	(19		)	—		—			(185		)	(19		)
Other income⁽¹⁾	515		442		2,542			30			499		44			3,556			516
Total noninterest income	112,578		123,774		28,217			2,726			1,981		187			142,776			126,687
Revenue	$	135,585	$	133,376	$	136,280		$	34,443		$	2,533	$	12,469		$	274,398		$	180,288

⁽¹⁾These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period, therefore the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities.

Refund Transfer Product Fees

Refund transfer fees are specific to the tax products offered by Refund Advantage and EPS. These fees are for products, services such as payment processing, and product referral commissions. Software partner fees paid and/or incurred are recorded on a net basis. The Company’s obligation for product fees and commissions is satisfied at the time of the product delivery and obligation for payment processing is satisfied at the time of processing. The transaction price for such activity is based upon stand-alone fees within the terms and conditions. As of March 31, 2019, there were no receivables related to refund transfer fees, which reflect earned revenue with unconditional rights to payment for product fee income, while as of September 30, 2018, there were $827,039 of such receivables. All refund transfer fees are recorded within the Payments reporting segment.

Card Fees

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

Deposit Fees

Fees are earned on depository accounts for commercial and consumer customers and include fees for account services, overdraft services, safety deposit box rentals, and event-driven services (i.e. returned checks, ATM surcharge, card replacement, wire transfers, and stop pays). The Company’s obligation for event-driven services is satisfied at the time of the event when the service is delivered, while its obligation for account services is satisfied over the course of each month. The Company’s obligation for overdraft services is satisfied at the time of overdraft. The transaction price for such activity is based upon stand-alone fees within the terms and conditions of the deposit agreements. Deposit fees are recorded within the Payments and Banking reporting segment.

Principal vs Agent

The Payments reporting segment includes principal/agent relationships. Within this segment, MPS relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of association/network contracts and partner/processer contracts for prepaid cards, which are recorded on a net basis within the income statement as Meta is the agent in these contracts. Also within this segment, Tax service relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of contracts with software providers and merchants, which are recorded on a net basis within the income statement as Meta is the agent in these contracts.

FAIR VALUE MEASUREMENTS

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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

The fair value hierarchy is as follows:

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

Level 2 Inputs - Valuation is based upon (1) quoted prices for similar instruments in active markets, (2) quoted prices for identical or similar instruments in markets that are not active and (3) 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.

Debt Securities Available for Sale and Equity Securities. Debt securities available for sale and equity securities are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments. The Company’s Level 1 securities include equity securities and mutual funds. Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds and corporate debt securities. The Company had no Level 3 securities at March 31, 2019 or September 30, 2018.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities. These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing. The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value. Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information. This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

The following table summarizes the fair values of debt securities available for sale and equity securities at March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds⁽¹⁾⁽²⁾	$	4,211	$	4,211	$	—	$	—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds⁽¹⁾	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

The Company did not transfer any AFS debt securities or equity securities between fair value hierarchy categories at March 31, 2019 or September 30, 2018.

Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. If a loan or lease is identified as individually impaired, management then measures impairment in accordance with ASC 310, Receivables. See Note 4 Loans and Leases, Net for further information.

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2019 and September 30, 2018.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802



	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in Thousands)

Fair Value at
March 31, 2019

Fair Value at
September 30, 2018

Valuation
Technique

Unobservable Input

Range of Inputs

Impaired loans and leases, net

$

1,254

4,825

Market approach

Appraised values (1)

4.00 - 10.00%

Foreclosed Assets, net

$

29,548

31,638

Market approach

Appraised values (1)

4.00 - 10.00%


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

The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2019 and September 30, 2018, 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 March 31, 2019 and September 30, 2018.



	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—

Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities ⁽¹⁾	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—

Loans held for sale	59,745		59,745		—		59,745		—

Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283

Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—

Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—

Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



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

Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—

Loans held for sale	15,606		15,606		—		15,606		—

Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755

Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—

Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—

Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—

The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at March 31, 2019 and September 30, 2018.

CASH AND CASH EQUIVALENTS

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

DEBT SECURITIES AVAILABLE FOR SALE AND EQUITY SECURITIES

Debt securities available for sale and equity securities are recorded at fair value on a recurring basis. Fair values for these investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

LOANS HELD FOR SALE

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

LOANS AND LEASES, NET

Upon adoption of ASU 2016-01, the fair value of loans and leases were estimated using an exit price methodology. The exit price estimation of fair value is based on the present value of expected cash flows, which are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk. In comparison, loan and lease fair values as of September 30, 2018 were estimated on an entrance price methodology, which discounts future cash flows using the then-current rates at which a similar loan would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-impaired loans and leases as of March 31, 2019 and September 30, 2018 are not comparable.

FEDERAL HOME LOAN BANK (“FHLB”) STOCK

The fair value of FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.

ACCRUED INTEREST RECEIVABLE

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

DEPOSITS

The carrying values of noninterest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value since deposits are immediately withdrawable without penalty. The fair value of time certificate deposits and wholesale certificate deposits are estimated using a discounted cash flows calculation that applies the FHLB Des Moines curve to aggregated expected maturities of time deposits. In accordance with Subtopic 825-10, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under Subtopic 825-10.

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, SUBORDINATED DEBENTURES AND OTHER BORROWINGS

The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.

ACCRUED INTEREST PAYABLE

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

LIMITATIONS

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

Schedule of Purchase Price to Net Assets

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SEGMENT REPORTING

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SSEGMENT REPORTING

SEGMENT REPORTING

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

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

The following tables present segment data for the Company for the three and six months ended March 31, 2019 and 2018, respectively.



	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2019
Net interest income (expense)	$	13,607	$	56,271	$	1,472		$	71,350
Provision for loan and lease losses	22,474		10,844		—			33,318
Noninterest income	89,752		13,948		1,325			105,025
Noninterest expense	32,178		42,522		35,554			110,254
Income (loss) before income tax expense (benefit)	48,707		16,853		(32,757		)	32,803

Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307



	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2019
Net interest income (expense)	$	23,007	$	108,063	$	552		$	131,622
Provision for loan and lease losses	23,969		18,448		—			42,417
Noninterest income	112,578		28,217		1,981			142,776
Noninterest expense	53,539		76,365		54,645			184,549
Income (loss) before income tax expense (benefit)	58,077		41,467		(52,112		)	47,432

Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307



	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2018
Net interest income	$	4,933	$	16,120	$	6,352		$	27,405
Provision for loan losses	18,129		214		—			18,343
Noninterest income	95,673		1,241		505			97,419
Noninterest expense	44,841		6,984		16,672			68,497
Income (loss) before income tax expense (benefit)	37,636		10,163		(9,815		)	37,984

Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497



	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2018
Net interest income	$	9,602	$	31,717	$	12,282		$	53,601
Provision for loan losses	19,146		265		—			19,411
Noninterest income	123,774		2,726		187			126,687
Noninterest expense	71,796		13,552		27,191			112,539
Income (loss) before income tax expense (benefit)	42,434		20,626		(14,722		)	48,338

Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Management has evaluated subsequent events that occurred after March 31, 2019. During this period, up to the filing date, management did not identify any material subsequent events that would require recognition or disclosure in our consolidated financial statements as of or for the quarter ended March 31, 2019.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Policies)	6 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy	Revenue Recognition - The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), subsequent related Updates (collectively, ASU 2014-09), and ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Prepaid Stored-Value Products on October 1, 2018. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative-effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s Meta Payment Systems (MPS) division. Refer to Note 12. Revenue from Contracts with Customers for additional information. Financial Instruments - The Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities and related Updates (collectively, ASU 2016-01) on October 1, 2018. ASU 2016-01 makes several revisions to Subtopic 825-10, including that ASU 2016-01: (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies impairment assessment of equity investments without readily determinable fair value, (3) eliminates requirement to disclose methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost, (4) requires the use of an exit price notion when measuring fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet and accompanying notes. Upon adoption, the Company recorded a cumulative-effect adjustment that reclassed $0.5 million, net of tax, from accumulated other comprehensive income to retained earnings, due to the Company’s cumulative change in fair value of equity securities with readily determinable fair value. Refer to Note 6. Securities for additional information.

ACQUISITIONS (Tables)

6 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

The following table summarizes the allocation of the purchase price to net assets of Crestmark as of the August 1, 2018 acquisition date.



(Dollars in Thousands)	Estimated fair value as previously reported^(a)		Measurement period adjustments			Fair value as adjusted
Rental Equipment	$	98,977	$	(3,355	)	$	95,622
Intangible assets	28,253		(117		)	28,136
Goodwill	204,547		4,194			208,742
Accrued expenses and other liabilities	88,301		723			89,024
Net other assets	55,464		—			55,464
Noncontrolling interest	3,167		—			3,167
Purchase price	295,773		—			295,773

^(a)As previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018

Schedule of Business Acquisitions, by Acquisition

The table below reflects the net impact of the foregoing DC Solar matters, based upon the Company's present understanding of the relevant facts and circumstances, to the Company's financial statements at March 31, 2019 and for the three months ended March 31, 2019.



		Increase (Decrease)
Balance Sheet:		(Dollars in Thousands)
	Operating lease equipment	$	(12,589	)
	Goodwill	1,968
	Other assets	(394		)
	Liabilities	(4,461		)
	Total balance sheet impact	$	(6,554	)

	Regulatory capital impact	$	(8,522	)

		Income (Expense)
Income Statement:
	Rental income	$	1,633
	Other income	315
	Impairment	(9,549		)
	Income tax benefit	1,047
	Impact to net income	$	(6,554	)

LOANS AND LEASES, NET (Tables)

6 Months Ended

Mar. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans Receivable

Loans and leases at March 31, 2019 and September 30, 2018 were as follows:



	March 31, 2019			September 30, 2018
National Lending	(Dollars in Thousands)
Asset based lending	$	572,210		$	477,917
Factoring	287,955			284,221
Lease financing	321,414			265,315
Insurance premium finance	307,875			337,877
SBA/USDA	77,481			59,374
Other commercial finance	98,956			85,145
Commercial finance	1,665,891			1,509,849
Consumer credit products	139,617			80,605
Other consumer finance	170,824			189,756
Consumer finance⁽¹⁾	310,441			270,361
Tax services	84,824			1,073
Warehouse finance⁽¹⁾	186,697			65,000
Total National Lending	2,247,853			1,846,283
Community Banking
Commercial real estate and operating	869,917			790,890
Consumer one-to-four family real estate and other	257,079			247,318
Agricultural real estate and operating	60,167			60,498
Total Community Banking	1,187,163			1,098,706
Total gross loans and leases	3,435,016			2,944,989

Allowance for loan and lease losses	(48,672		)	(13,040		)
Net deferred loan origination fees (costs)	2,964			(250		)
Total loans and leases, net⁽²⁾	$	3,389,308		$	2,931,699

⁽¹⁾Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

Schedule of Loans Purchased and Sold by Portfolio Segment

Loans purchased and sold by portfolio segment, including participation interests, for the three and six months ended March 31, 2019 and 2018 were as follows:



	Three Months Ended				Six Months Ended
	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Loans Purchased	(Dollars in Thousands)
Loans held for sale	$	5,940	$	—	$	5,940	$	—
Loans held for investment:
Total National Lending	10,621		—		125,591		72,751
Total Community Banking	7,432		13,823		18,513		16,235
Total purchases	23,933		13,823		150,044		88,986
Loans Sold
Loans held for sale	28,051		—		34,904		—
Loans held for investment:
Total Community Banking	10,479		3,666		10,857		9,582
Total sales	$	38,530	$	3,666	$	45,761	$	9,582

Sales-type Lease, Lease Income

The net investment in direct financing and sales-type leases is comprised of the following as of March 31, 2019 and September 30, 2018.



	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	366,361		$	301,835
Estimated residual value of leased equipment	11,328			12,406
Unamortized initial direct costs	4,190			1,806
Premium on acquired leases	9			26
Unearned income	(56,266		)	(48,949		)
Net investment in direct financing and sales-type leases	$	325,622		$	267,124

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of March 31, 2019.



	As of March 31, 2019
	(Dollars in thousands)
Remaining in 2019	$	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$	366,361

Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for each of the three and six months ended March 31, 2019 and 2018 was as follows:



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	2,065	$	1,365		$	—		$	69	$	3,499
Factoring	1,062		1,799			(1,125		)	25		1,761
Lease financing	1,084		1,671			(1,044		)	254		1,965
Insurance premium finance	972		1,797			(1,877		)	27		919
SBA/USDA	253		221			—			—		474
Other commercial finance	291		234			—			—		525
Commercial finance	5,727		7,087			(4,046		)	375		9,143
Consumer credit products	1,151		163			—			—		1,314
Other consumer finance	4,222		3,336			(2,456		)	28		5,130
Consumer finance	5,373		3,499			(2,456		)	28		6,444
Tax services	1,546		22,473			(1		)	84		24,102
Warehouse finance	176		9			—			—		185
Total National Lending	12,822		33,068			(6,503		)	487		39,874
Community Banking
Commercial real estate and operating	6,570		103			—			—		6,673
Consumer one-to-four family real estate and other	719		259			(20		)	—		958
Agricultural real estate and operating	1,179		(112		)	—			100		1,167
Total Community Banking	8,468		250			(20		)	100		8,798
Total	$	21,290	$	33,318		$	(6,523	)	$	587	$	48,672



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	107	$	3,528		$	(262	)	$	126	$	3,499
Factoring	64		3,022			(1,375		)	50		1,761
Lease financing	59		1,542			(1,462		)	1,826		1,965
Insurance premium finance	1,031		1,890			(2,085		)	83		919
SBA/USDA	13		461			—			—		474
Other commercial finance	28		497			—			—		525
Commercial finance	1,302		10,940			(5,184		)	2,085		9,143
Consumer credit products	785		529			—			—		1,314
Other consumer finance	2,820		6,359			(4,079		)	30		5,130
Consumer finance	3,605		6,888			(4,079		)	30		6,444
Tax services	—		23,969			(43		)	176		24,102
Warehouse finance	65		120			—			—		185
Total National Lending	4,972		41,917			(9,306		)	2,291		39,874
Community Banking
Commercial real estate and operating	6,220		453			—			—		6,673
Consumer one-to-four family real estate and other	632		346			(20		)	—		958
Agricultural real estate and operating	1,216		(299		)	—			250		1,167
Total Community Banking	8,068		500			(20		)	250		8,798
Total	$	13,040	$	42,417		$	(9,326	)	$	2,541	$	48,672



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	725	$	214		$	(339	)	$	146	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	729		214			(339		)	146		750
Tax services	1,435		18,129			—			9		19,573
Total National Lending	2,164		18,343			(339		)	155		20,323
Community Banking
Commercial real estate and operating	3,149		951			—			—		4,100
Consumer one-to-four family real estate and other	665		233			—			3		901
Agricultural real estate and operating	1,984		(1,273		)	—			54		765
Unallocated	900		89			—			—		989
Total Community Banking	6,698		—			—			57		6,755
Total	$	8,862	$	18,343		$	(339	)	$	212	$	27,078



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	796	$	265		$	(468	)	$	153	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	800		265			(468		)	153		750
Tax services	5		19,146			—			422		19,573
Total National Lending	805		19,411			(468		)	575		20,323
Community Banking
Commercial real estate and operating	2,820		1,280			—			—		4,100
Consumer one-to-four family real estate and other	809		120			(31		)	3		901
Agricultural real estate and operating	2,574		(1,863		)	—			54		765
Unallocated	526		463			—			—		989
Total Community Banking	6,729		—			(31		)	57		6,755
Total	$	7,534	$	19,411		$	(499	)	$	632	$	27,078



	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	62	$	3,437	$	3,499	$	5,965	$	566,245	$	572,210
Factoring	12		1,749		1,761		6,034		281,921		287,955
Lease financing	67		1,898		1,965		2,299		319,115		321,414
Insurance premium finance	—		919		919		—		307,875		307,875
SBA/USDA	—		474		474		—		77,481		77,481
Other commercial finance	—		525		525		—		98,956		98,956
Commercial finance	141		9,002		9,143		14,298		1,651,593		1,665,891
Consumer credit products	—		1,314		1,314		—		139,617		139,617
Other consumer finance	—		5,130		5,130		1,236		169,588		170,824
Consumer finance	—		6,444		6,444		1,236		309,205		310,441
Tax services	—		24,102		24,102		—		84,824		84,824
Warehouse finance	—		185		185		—		186,697		186,697
Total National Lending	141		39,733		39,874		15,534		2,232,319		2,247,853
Community Banking
Commercial real estate and operating	—		6,673		6,673		—		869,917		869,917
Consumer one-to-four family real estate and other	—		958		958		134		256,945		257,079
Agricultural real estate and operating	—		1,167		1,167		1,220		58,947		60,167
Total Community Banking	—		8,798		8,798		1,354		1,185,809		1,187,163
Total	$	141	$	48,531	$	48,672	$	16,888	$	3,418,128	$	3,435,016



	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment⁽¹⁾		Ending balance: collectively evaluated for impairment⁽¹⁾		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Asset Classification of Loans and Leases

The asset classification of loans and leases at March 31, 2019 and September 30, 2018 were as follows:



Asset Classification	Pass		Watch		Special Mention		Substandard		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	493,351	$	—	$	72,894	$	5,965	$	572,210
Factoring	237,880		—		44,041		6,034		287,955
Lease financing	303,742		—		14,652		3,020		321,414
Insurance premium finance	307,875		—		—		—		307,875
SBA/USDA	63,428		—		14,053		—		77,481
Other commercial finance	98,380		—		576		—		98,956
Commercial finance	1,504,656		—		146,216		15,019		1,665,891
Consumer credit products	139,617		—		—		—		139,617
Other consumer finance	170,824		—		—		—		170,824
Consumer finance	310,441		—		—		—		310,441
Tax services	84,824		—		—		—		84,824
Warehouse finance	186,697		—		—		—		186,697
Total National Lending	2,086,618		—		146,216		15,019		2,247,853
Community Banking
Commercial real estate and operating	857,897		6,672		5,348		—		869,917
Consumer one-to-four family real estate and other	253,698		2,999		306		76		257,079
Agricultural real estate and operating	43,260		5,331		3,038		8,538		60,167
Total Community Banking	1,154,855		15,002		8,692		8,614		1,187,163
Total loans and leases	$	3,241,473	$	15,002	$	154,908	$	23,633	$	3,435,016



Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

Past Due Loans and Leases

Past due loans and leases at March 31, 2019 and September 30, 2018 were as follows:



	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	799	$	1,712	$	78	$	2,589	$	569,621	$	572,210	$	—	$	266	$	266
Factoring	—		—		—		—		287,955		287,955		—		716		716
Lease financing	9,291		1,227		1,761		12,279		309,135		321,414		645		1,802		2,447
Insurance premium finance	2,009		767		1,640		4,416		303,459		307,875		1,640		—		1,640
SBA/USDA	1,078		—		—		1,078		76,403		77,481		—		—		—
Other commercial finance	—		—		—		—		98,956		98,956		—		—		—
Commercial finance	13,177		3,706		3,479		20,362		1,645,529		1,665,891		2,285		2,784		5,069
Consumer credit products	1,080		667		420		2,167		137,450		139,617		420		—		420
Other consumer finance	1,256		504		1,853		3,613		167,211		170,824		1,853		—		1,853
Consumer finance	2,336		1,171		2,273		5,780		304,661		310,441		2,273		—		2,273
Tax services	667		—		—		667		84,157		84,824		—		—		—
Warehouse finance	—		—		—		—		186,697		186,697		—		—		—
Total National Lending	16,180		4,877		5,752		26,809		2,221,044		2,247,853		4,558		2,784		7,342
Community Banking
Commercial real estate and operating	271		—		—		271		869,646		869,917		—		—		—
Consumer one-to-four family real estate and other	110		250		76		436		256,643		257,079		—		76		76
Agricultural real estate and operating	—		—		2,200		2,200		57,967		60,167		2,200		—		2,200
Total Community Banking	381		250		2,276		2,907		1,184,256		1,187,163		2,200		76		2,276
Total Loans and Leases	$	16,561	$	5,127	$	8,028	$	29,716	$	3,405,300	$	3,435,016	$	6,758	$	2,860	$	9,618



	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

Impaired Loans and Leases

Impaired loans and leases at March 31, 2019 and September 30, 2018 were as follows:



March 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	4,887	$	5,399	$	—
Factoring	6,009		7,084		—
Lease financing	2,209		2,209		—
Commercial finance	13,105		14,692		—
Other consumer finance	1,236		1,304		—
Consumer finance	1,236		1,304		—
Total National Lending	14,341		15,996		—
Community Banking
Consumer one-to-four family real estate and other	134		153		—
Agricultural real estate and operating	1,220		1,220		—
Total Community Banking	1,354		1,373		—
Total	$	15,695	$	17,370	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	1,078	$	1,078	$	62
Factoring	25		25		12
Lease financing	90		90		67
Commercial finance	1,193		1,193		141
Total National Lending	1,193		1,193		141
Total	$	1,193	$	1,193	$	141



September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

The following table provides the average recorded investment in impaired loans and leases for the three and six month periods ended March 31, 2019 and 2018.



Three Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	3,569	$	95	$	—	$	—
Factoring	3,131		—		—		—
Lease financing	4,100		7		—		—
Commercial finance	10,800		102		—		—
Other consumer finance	1,232		10		—		—
Consumer finance	1,232		10		—		—
Total National Lending	12,032		112		—		—
Community Banking
Commercial real estate and operating	268		—		705		5
Consumer one-to-four family real estate and other	137		—		229		6
Agricultural real estate and operating	1,414		10		1,680		50
Total Community Banking	1,819		10		2,614		61
Total loans and leases	$	13,851	$	122	$	2,614	$	61



Six Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	2,648	$	174	$	—	$	—
Factoring	2,956		5		—		—
Lease financing	5,842		17		—		—
Commercial finance	11,446		196		—		—
Other consumer finance	1,227		10		—		—
Consumer finance	1,227		10		—		—
Total National Lending	12,673		206		—		—
Community Banking
Commercial real estate and operating	336		4		840		10
Consumer one-to-four family real estate and other	138		2		165		9
Agricultural real estate and operating	1,443		35		1,015		64
Total Community Banking	1,917		41		2,020		83
Total loans and leases	$	14,590	$	247	$	2,020	$	83

EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and six months ended March 31, 2019 and 2018 is presented below.



Three Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Basic income per common share	0.81		1.08

Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Outstanding options - based upon the two-class method	67,237		118,956
Weighted average diluted common shares outstanding	39,496,832		29,180,136
Diluted income per common share	0.81		1.08



Six Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Basic income per common share	1.21		1.24

Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Outstanding options - based upon the two-class method	68,581		115,038
Weighted average diluted common shares outstanding	39,450,263		29,130,414
Diluted income per common share	1.20		1.24

SECURITIES (Tables)

6 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at March 31, 2019 and September 30, 2018 are presented below.



At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	163,621	$	637	$	(155	)	$	164,103
Obligations of states and political subdivisions	11,432		106		(9		)	11,529
Non-bank qualified obligations of states and political subdivisions	629,732		1,357		(9,447		)	621,642
Asset-backed securities	284,701		1,286		(1,598		)	284,389
Mortgage-backed securities	419,024		1,064		(6,595		)	413,493
Total debt securities AFS	$	1,508,510	$	4,450	$	(17,804	)	$	1,495,156
Common equities and mutual funds⁽¹⁾⁽²⁾	$	3,592	$	619	$	—		$	4,211

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	45,591	$	1	$	(1,255	)	$	44,337
Obligations of states and political subdivisions	17,154		49		(293		)	16,910
Non-bank qualified obligations of states and political subdivisions	1,140,884		826		(31,825		)	1,109,885
Asset-backed securities	310,700		2,585		(257		)	313,028
Mortgage-backed securities	378,301		—		(14,236		)	364,065
Total debt securities AFS	$	1,892,630	$	3,461	$	(47,866	)	$	1,848,225
Common equities and mutual funds⁽¹⁾	3,172		635		(7		)	3,800
Total AFS securities⁽¹⁾	$	1,895,802	$	4,096	$	(47,873	)	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Securities Held to Maturity



Held to Maturity
At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	146,992	$	—	$	(5,224	)	$	141,768
Mortgage-backed securities	7,606		—		(210		)	7,396
Total held to maturity securities	$	154,598	$	—	$	(5,434	)	$	149,164



At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	163,893	$	—	$	(10,758	)	$	153,135
Mortgage-backed securities	7,850		—		(422		)	7,428
Total held to maturity securities	$	171,743	$	—	$	(11,180	)	$	160,563

Debt Securities, Trading, and Equity Securities, FV-NI

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and September 30, 2018, were as follows:



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	41,845	$	(29	)	$	27,214	$	(126	)	$	69,059	$	(155	)
Obligations of states and political subdivisions	—		—			2,052		(9		)	2,052		(9		)
Non-bank qualified obligations of states and political subdivisions	10,210		(2		)	448,680		(9,445		)	458,890		(9,447		)
Asset-backed securities	148,254		(1,539		)	12,184		(59		)	160,438		(1,598		)
Mortgage-backed securities	32,722		(13		)	282,789		(6,582		)	315,511		(6,595		)
Total debt securities AFS	$	233,031	$	(1,583	)	$	772,919	$	(16,221	)	$	1,005,950	$	(17,804	)
Common equities and mutual funds⁽¹⁾⁽²⁾	—		—			—		—			—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	43,097	$	(1,255	)	$	—	$	—		$	43,097	$	(1,255	)
Obligations of state and political subdivisions	11,036		(279		)	881		(14		)	11,917		(293		)
Non-bank qualified obligations of states and political subdivisions	626,693		(13,539		)	358,095		(18,286		)	984,788		(31,825		)
Asset-backed securities	146,638		(257		)	—		—			146,638		(257		)
Mortgage-backed securities	121,217		(3,292		)	242,849		(10,944		)	364,066		(14,236		)
Total debt securities AFS	$	948,681	$	(18,622	)	$	601,825	$	(29,244	)	$	1,550,506	$	(47,866	)
Common equities and mutual funds⁽¹⁾	1,818		(7		)	—		—			1,818		(7		)
Total debt AFS securities⁽¹⁾	$	950,499	$	(18,629	)	$	601,825	$	(29,244	)	$	1,552,324	$	(47,873	)

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Schedule of Unrealized Loss on Investments



Held To Maturity	LESS THAN 12 MONTHS				OVER 12 MONTHS					TOTAL
At March 31, 2019	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	$	—	$	—	$	141,768	$	(5,225	)	$	141,768	$	(5,225	)
Mortgage-backed securities	—		—		7,396		(210		)	7,396		(210		)
Total held to maturity securities	$	—	$	—	$	149,164	$	(5,435	)	$	149,164	$	(5,435	)



	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	5,767	$	(287	)	$	147,368	$	(10,471	)	$	153,135	$	(10,758	)
Mortgage-backed securities	—		—			7,428		(422		)	7,428		(422		)
Total held to maturity securities	$	5,767	$	(287	)	$	154,796	$	(10,893	)	$	160,563	$	(11,180	)

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below 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 housing related municipal securities, SBA and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.



Securities at Fair Value	AMORTIZED COST		FAIR VALUE
	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)

Due in one year or less	$	1,020	$	1,019
Due after one year through five years	15,058		15,285
Due after five years through ten years	64,894		65,335
Due after ten years	1,008,514		1,000,024
	1,089,486		1,081,663
Mortgage-backed securities	419,024		413,493
Total securities at fair value	$	1,508,510	$	1,495,156



	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)

Due in one year or less	$	2,532	$	2,529
Due after one year through five years	41,415		41,504
Due after five years through ten years	352,099		350,143
Due after ten years	1,118,283		1,089,984
	1,514,329		1,484,160
Mortgage-backed securities	378,301		364,065
Common equities and mutual funds⁽¹⁾	3,172		3,800
Total securities at fair value	$	1,895,802	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



Held To Maturity	AMORTIZED COST		FAIR VALUE
	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)

Due after ten years	$	146,992	$	141,768
	146,992		141,768
Mortgage-backed securities	7,606		7,396
Total held to maturity securities at cost	$	154,598	$	149,164



	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due after ten years	$	163,893	$	153,135
	163,893		153,135
Mortgage-backed securities	7,850		7,428
Total held to maturity securities at cost	$	171,743	$	160,563

RENTAL EQUIPMENT, NET (Tables)

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Rental equipment was as follows as of March 31, 2019 and September 30, 2018.



	March 31, 2019			September 30, 2018
	(Dollars in thousands)
Computers and IT networking equipment	$	43,896		$	53,035
Motor vehicles and other	59,589			43,505
Office furniture and equipment	3,409			3,590
Solar panels and equipment	81,498			57,242
Total	188,392			157,372

Accumulated depreciation	(48,305		)	(50,082		)
Net book value	$	140,087		$	107,290

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments receivable on equipment under operating leases was as follows as of March 31, 2019.



	March 31, 2019
	(Dollars in thousands)
2019	$	12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$	78,395

GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2019 and 2018 were as follows:



	Payments		Banking		Corporate Services/Other		Total
Goodwill	(Dollars in Thousands)
September 30, 2018	$	87,145	$	216,125	$	—	$	303,270
Acquisitions	—		—		—		—
Measurement Period Adjustments ⁽¹⁾	—		4,194		—		4,194
Impairment	—		—		—		—
March 31, 2019	$	87,145	$	220,319	$	—	$	307,464

September 30, 2017	$	87,145	$	11,578	$	—	$	98,723
Acquisitions	—		—		—		—
Impairment	—		—		—		—
March 31, 2018	$	87,145	$	11,578	$	—	$	98,723

⁽¹⁾The Company recognized measurement period adjustments on provisional goodwill during the second fiscal quarter of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.

Schedule of Finite-Lived Intangible Assets



	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2018	$	12,987		$	1,297		$	48,455		$	7,980		$	70,719
Acquisitions during the period	—			—			—			78			78
Amortization during the period	(514		)	(235		)	(8,742		)	(487		)	(9,978		)
Write-offs during the period	—			—			—			(313		)	(313		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

Gross carrying amount	$	14,624		$	2,480		$	82,088		$	10,667		$	109,859
Accumulated amortization	(2,151		)	(1,418		)	(32,127		)	(2,750		)	(38,446		)
Accumulated impairment	—			—			(10,248		)	(659		)	(10,907		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

⁽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)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽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.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense of intangible assets in the remaining six months of fiscal 2019 and subsequent fiscal years is as follows:



	(Dollars in Thousands)
Remaining in 2019	$	7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Total anticipated intangible amortization	$	60,506

STOCK COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Activity of Options

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the six months ended March 31, 2019:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)	Aggregate Intrinsic Value
	(Dollars in Thousands, Except Per Share Data ⁽¹⁾)
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974
Granted	—		—		—	—
Exercised	(45,132	)	8.95		—	742
Forfeited or expired	(3,027	)	10.60		—	33
Options outstanding, March 31, 2019	107,802		$	8.23	1.47	$	1,235

Options exercisable, March 31, 2019	107,802		$	8.23	1.47	$	1,235

Schedule of Nonvested Share Activity



	Number of Shares		Weighted Average Fair Value at Grant
(Dollars in Thousands, Except Per Share Data ⁽¹⁾)
Nonvested (restricted) shares outstanding, September 30, 2018	1,005,813		$	29.89
Granted	296,302		24.84
Vested	(347,354	)	26.78
Forfeited or expired	(1,623	)	26.17
Nonvested (restricted) shares outstanding, March 31, 2019	953,138		$	29.46

⁽¹⁾ All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

INCOME TAXES (Tables)

6 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.



Six Months Ended March 31,	2019			2018
(Dollars in Thousands)
Provision at statutory rate	$	9,541		$	11,857
Tax-exempt income	(1,824		)	(3,728		)
State income taxes	2,143			2,003
Interim period effective rate adjustment	(3,968		)	(1,277		)
Tax credit investments, net - federal	(9,568		)	—
Tax Reform rate adjustment	—			3,635
IRC 162(m) nondeductible compensation	1,561			—
Other, net	29			(258		)
Income tax expense	$	(2,086	)	$	12,232
Effective tax rate	(4.40		%)	25.31		%

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments

The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Consolidated Financial Statements.



(Dollars in thousands)	Payments				Banking					Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2019		2018		2019			2018		2019		2018			2019			2018
Net interest income⁽¹⁾	$	13,607	$	4,933	$	56,271		$	16,120	$	1,472	$	6,352		$	71,350		$	27,405
Noninterest income:
Refund transfer product fees	31,601		33,803		—			—		—		—			31,601			33,803
Tax advance product fees⁽¹⁾	33,038		33,838		—			—		—		—			33,038			33,838
Card fees	22,960		26,771		92			85		—		—			23,052			26,856
Rental income⁽¹⁾	—		—		9,890			—		—		—			9,890			—
Loan and lease fees⁽¹⁾	—		—		925			1,042		—		—			925			1,042
Bank-owned life insurance⁽¹⁾	—		—		—			—		631		650			631			650
Deposit fees	1,711		879		382			103		—		—			2,093			982
Gain (loss) on sale of securities available-for-sale, net⁽¹⁾	—		—		—			—		231		(166		)	231			(166		)
Gain on sale of loans and leases⁽¹⁾	—		—		1,085			—		—		—			1,085			—
Loss on foreclosed real estate⁽¹⁾	—		—		(200		)	—		—		—			(200		)	—
Other income⁽¹⁾	442		382		1,774			11		463		21			2,679			414
Total noninterest income	89,752		95,673		13,948			1,241		1,325		505			105,025			97,419
Revenue	$	103,359	$	100,606	$	70,219		$	17,361	$	2,797	$	6,857		$	176,375		$	124,824

⁽¹⁾These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.



(Dollars in thousands)	Payments				Banking						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2019		2018		2019			2018			2019		2018			2019			2018
Net interest income⁽¹⁾	$	23,007	$	9,602	$	108,063		$	31,717		$	552	$	12,282		$	131,622		$	53,601
Noninterest income:
Refund transfer product fees	31,862		33,995		—			—			—		—			31,862			33,995
Tax advance product fees⁽¹⁾	34,723		35,785		—			—			—		—			34,723			35,785
Card fees	42,233		51,945		170			158			—		—			42,403			52,103
Rental income⁽¹⁾	—		—		20,780			—			—		—			20,780			—
Loan and lease fees⁽¹⁾	—		—		2,173			2,334			—		—			2,173			2,334
Bank-owned life insurance⁽¹⁾	—		—		—			—			1,273		1,319			1,273			1,319
Deposit fees	3,245		1,607		786			223			—		—			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net⁽¹⁾	—		—		—			—			209		(1,176		)	209			(1,176		)
Gain on sale of loans and leases⁽¹⁾	—		—		1,951			—			—		—			1,951			—
Loss on foreclosed real estate⁽¹⁾	—		—		(185		)	(19		)	—		—			(185		)	(19		)
Other income⁽¹⁾	515		442		2,542			30			499		44			3,556			516
Total noninterest income	112,578		123,774		28,217			2,726			1,981		187			142,776			126,687
Revenue	$	135,585	$	133,376	$	136,280		$	34,443		$	2,533	$	12,469		$	274,398		$	180,288

⁽¹⁾These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Fair Values of Securities Available for Sale and Held to Maturity

The following table summarizes the fair values of debt securities available for sale and equity securities at March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds⁽¹⁾⁽²⁾	$	4,211	$	4,211	$	—	$	—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds⁽¹⁾	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2019 and September 30, 2018.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802



	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in Thousands)

Fair Value at
March 31, 2019

Fair Value at
September 30, 2018

Valuation
Technique

Unobservable Input

Range of Inputs

Impaired loans and leases, net

$

1,254

4,825

Market approach

Appraised values (1)

4.00 - 10.00%

Foreclosed Assets, net

$

29,548

31,638

Market approach

Appraised values (1)

4.00 - 10.00%


⁽¹⁾	The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating 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 March 31, 2019 and September 30, 2018.



	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—

Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities ⁽¹⁾	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—

Loans held for sale	59,745		59,745		—		59,745		—

Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283

Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—

Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—

Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.



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

Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—

Loans held for sale	15,606		15,606		—		15,606		—

Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755

Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—

Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—

Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—

SEGMENT REPORTING (Tables)

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information of Entity

The following tables present segment data for the Company for the three and six months ended March 31, 2019 and 2018, respectively.



	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2019
Net interest income (expense)	$	13,607	$	56,271	$	1,472		$	71,350
Provision for loan and lease losses	22,474		10,844		—			33,318
Noninterest income	89,752		13,948		1,325			105,025
Noninterest expense	32,178		42,522		35,554			110,254
Income (loss) before income tax expense (benefit)	48,707		16,853		(32,757		)	32,803

Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307



	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2019
Net interest income (expense)	$	23,007	$	108,063	$	552		$	131,622
Provision for loan and lease losses	23,969		18,448		—			42,417
Noninterest income	112,578		28,217		1,981			142,776
Noninterest expense	53,539		76,365		54,645			184,549
Income (loss) before income tax expense (benefit)	58,077		41,467		(52,112		)	47,432

Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307



	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2018
Net interest income	$	4,933	$	16,120	$	6,352		$	27,405
Provision for loan losses	18,129		214		—			18,343
Noninterest income	95,673		1,241		505			97,419
Noninterest expense	44,841		6,984		16,672			68,497
Income (loss) before income tax expense (benefit)	37,636		10,163		(9,815		)	37,984

Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497



	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2018
Net interest income	$	9,602	$	31,717	$	12,282		$	53,601
Provision for loan losses	19,146		265		—			19,411
Noninterest income	123,774		2,726		187			126,687
Noninterest expense	71,796		13,552		27,191			112,539
Income (loss) before income tax expense (benefit)	42,434		20,626		(14,722		)	48,338

Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Details) $ in Thousands	Oct. 01, 2018 USD ($)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 1,502

ACQUISTIONS - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
ACQUISTIONS - Narrative (Details) - USD ($) $ in Thousands	Aug. 01, 2018	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Goodwill		$ 307,464	$ 303,270	$ 98,723	$ 98,723
Crestmark Bancorp, Inc.
Business Acquisition [Line Items]
Total consideration paid	$ 295,800
Equity interest issued (in shares)	9,919,512
Receivables acquired		591,100
Goodwill	$ 204,547	208,742
DC Solar
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ 2,200

LOANS AND LEASES, NET - Summary of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018	Aug. 01, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	$ 3,435,016	$ 2,944,989
Allowance for loan and lease losses	(48,672)	(13,040)
Net Deferred Loan Origination Fees	2,964	(250)
Total Loans Receivable, Net	3,389,308	2,931,699
Financing Receivable \| Asset based lending
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	572,210	477,917
Financing Receivable \| Factoring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	287,955	284,221
Financing Receivable \| Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	321,414	265,315
Financing Receivable \| Insurance premium finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	307,875	337,877
Financing Receivable \| SBA/USDA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	77,481	59,374
Financing Receivable \| Other commercial finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	98,956	85,145
Financing Receivable \| Commercial finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	1,665,891	1,509,849
Financing Receivable \| Consumer credit products
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	139,617	80,605
Financing Receivable \| Other consumer finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	170,824	189,756
Financing Receivable \| Consumer finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	310,441	270,361
Financing Receivable \| Tax services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	84,824	1,073
Financing Receivable \| Warehouse finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	186,697	65,000
Financing Receivable \| National Lending
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	2,247,853	1,846,283
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	1,187,163	1,098,706
Loans Receivable \| Commercial real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	869,917	790,890
Loans Receivable \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	257,079	247,318
Loans Receivable \| Agricultural real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	60,167	$ 60,498
Crestmark Bancorp, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables acquired	591,100
Acquired loans and leases from Crestmark acquisition			$ 1,060,000
Credit discounts	$ (8,700)		(12,300)
Interest rate mark discounts			$ (6,000)

ACQUISITIONS ACQUISITIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Aug. 01, 2018	Mar. 31, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Goodwill	$ 307,464	$ 303,270		$ 98,723	$ 98,723
Crestmark Bancorp, Inc.
Business Acquisition [Line Items]
Rental Equipment	95,622		$ 98,977
Measurement period adjustments, Rental Equipment	(3,355)
Intangible assets	28,136		28,253
Measurement period adjustments, Intangible assets	(117)
Goodwill	208,742		204,547
Measurement period adjustments, Goodwill	4,194
Accrued expenses and other liabilities	89,024		88,301
Measurement period adjustments, Accrued expenses and other liabilities	723
Net other assets	55,464		55,464
Noncontrolling interest	3,167		3,167
Purchase price	$ 295,773		$ 295,773

LOANS AND LEASES, NET LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases	$ 5,940	$ 0	$ 5,940	$ 0
Loans held for investment			144,104	88,986
Total purchases	23,933	13,823	150,044	88,986
Loans held for sale			36,461	0
Total sales	38,530	3,666	45,761	9,582
Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	10,621	0	125,591	72,751
Loans held for sale	28,051	0	34,904	0
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	7,432	13,823	18,513	16,235
Loans held for investment: Total Community Banking	$ 10,479	$ 3,666	$ 10,857	$ 9,582

ACQUISITIONS - Goodwill Increase (Decrease) (Details) - DC Solar - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)	$ 2,200
Rental income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ 1,633
Other income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		315
Impairment
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(9,549)
Income tax benefit
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		1,047
Impact to net income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(6,554)
Operating lease equipment
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(12,589)
Goodwill
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		1,968
Other assets
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(394)
Liabilities
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(4,461)
Total balance sheet impact
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(6,554)
Regulatory capital impact
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ (8,522)

LOANS AND LEASES, NET LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Net Investment in Leases [Abstract]
Minimum lease payments receivable	$ 366,361	$ 301,835
Estimated residual value of leased equipment	11,328	12,406
Unamortized initial direct costs	4,190	1,806
Premium on acquired leases	9	26
Unearned income	(56,266)	(48,949)
Net investment in direct financing and sales-type leases	325,622	$ 267,124
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
Remaining in 2019	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$ 366,361

LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Sep. 30, 2018	Dec. 31, 2017
Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 21,290		$ 13,040	$ 7,534
Provision (recovery) for loan losses	33,318	$ 18,343	42,417	19,411
Charge offs	(6,523)	(339)	(9,326)	(499)
Recoveries	587	212	2,541	632
Ending balance	48,672		48,672	27,078
Ending balance: individually evaluated for impairment					$ 141	$ 0
Ending balance: collectively evaluated for impairment					48,531	13,040
Total	21,290		13,040	7,534	48,672	13,040	$ 8,862
Loans:
Ending balance: individually evaluated for impairment					16,888	15,611
Ending balance: collectively evaluated for impairment					3,418,128	2,929,378
Total loans and leases					3,435,016	2,944,989
Financing Receivable
Loans:
Total loans and leases					2,247,853	1,846,283
Financing Receivable \| Asset based lending
Allowance for Credit Losses [Roll Forward]
Beginning balance	2,065		107
Provision (recovery) for loan losses	1,365		3,528
Charge offs	0		(262)
Recoveries	69		126
Ending balance	3,499		3,499
Ending balance: individually evaluated for impairment					62	0
Ending balance: collectively evaluated for impairment					3,437	107
Total	2,065		107		3,499	107
Loans:
Ending balance: individually evaluated for impairment					5,965	1,404
Ending balance: collectively evaluated for impairment					566,245	476,513
Total loans and leases					572,210	477,917
Financing Receivable \| Factoring
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,062		64
Provision (recovery) for loan losses	1,799		3,022
Charge offs	(1,125)		(1,375)
Recoveries	25		50
Ending balance	1,761		1,761
Ending balance: individually evaluated for impairment					12	0
Ending balance: collectively evaluated for impairment					1,749	64
Total	1,062		64		1,761	64
Loans:
Ending balance: individually evaluated for impairment					6,034	3,331
Ending balance: collectively evaluated for impairment					281,921	280,890
Total loans and leases					287,955	284,221
Financing Receivable \| Lease financing
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,084		59
Provision (recovery) for loan losses	1,671		1,542
Charge offs	(1,044)		(1,462)
Recoveries	254		1,826
Ending balance	1,965		1,965
Ending balance: individually evaluated for impairment					67	0
Ending balance: collectively evaluated for impairment					1,898	59
Total	1,084		59		1,965	59
Loans:
Ending balance: individually evaluated for impairment					2,299	8,877
Ending balance: collectively evaluated for impairment					319,115	256,438
Total loans and leases					321,414	265,315
Financing Receivable \| Insurance premium finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	972		1,031	796
Provision (recovery) for loan losses	1,797	214	1,890	265
Charge offs	(1,877)	(339)	(2,085)	(468)
Recoveries	27	146	83	153
Ending balance	919		919	746
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					919	1,031
Total	972		1,031	796	919	1,031	725
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					307,875	337,877
Total loans and leases					307,875	337,877
Financing Receivable \| SBA/USDA
Allowance for Credit Losses [Roll Forward]
Beginning balance	253		13
Provision (recovery) for loan losses	221		461
Charge offs	0		0
Recoveries	0		0
Ending balance	474		474
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					474	13
Total	253		13		474	13
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					77,481	59,374
Total loans and leases					77,481	59,374
Financing Receivable \| Other commercial finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	291		28	4
Provision (recovery) for loan losses	234	0	497	0
Charge offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	525		525	4
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					525	28
Total	291		28	4	525	28	4
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					98,956	85,145
Total loans and leases					98,956	85,145
Financing Receivable \| Commercial finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	5,727		1,302	800
Provision (recovery) for loan losses	7,087	214	10,940	265
Charge offs	(4,046)	(339)	(5,184)	(468)
Recoveries	375	146	2,085	153
Ending balance	9,143		9,143	750
Ending balance: individually evaluated for impairment					141	0
Ending balance: collectively evaluated for impairment					9,002	1,302
Total	5,727		1,302	800	9,143	1,302	729
Loans:
Ending balance: individually evaluated for impairment					14,298	13,612
Ending balance: collectively evaluated for impairment					1,651,593	1,496,237
Total loans and leases					1,665,891	1,509,849
Financing Receivable \| Consumer credit products
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,151		785
Provision (recovery) for loan losses	163		529
Charge offs	0		0
Recoveries	0		0
Ending balance	1,314		1,314
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					1,314	785
Total	1,151		785		1,314	785
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					139,617	80,605
Total loans and leases					139,617	80,605
Financing Receivable \| Other consumer finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	4,222		2,820
Provision (recovery) for loan losses	3,336		6,359
Charge offs	(2,456)		(4,079)
Recoveries	28		30
Ending balance	5,130		5,130
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					5,130	2,820
Total	4,222		2,820		5,130	2,820
Loans:
Ending balance: individually evaluated for impairment					1,236	0
Ending balance: collectively evaluated for impairment					169,588	189,756
Total loans and leases					170,824	189,756
Financing Receivable \| Consumer finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	5,373		3,605
Provision (recovery) for loan losses	3,499		6,888
Charge offs	(2,456)		(4,079)
Recoveries	28		30
Ending balance	6,444		6,444
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					6,444	3,605
Total	5,373		3,605		6,444	3,605
Loans:
Ending balance: individually evaluated for impairment					1,236	0
Ending balance: collectively evaluated for impairment					309,205	270,361
Total loans and leases					310,441	270,361
Financing Receivable \| Tax services
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,546		0	5
Provision (recovery) for loan losses	22,473	18,129	23,969	19,146
Charge offs	(1)	0	(43)	0
Recoveries	84	9	176	422
Ending balance	24,102		24,102	19,573
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					24,102	0
Total	1,546		0	5	24,102	0	1,435
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					84,824	1,073
Total loans and leases					84,824	1,073
Financing Receivable \| Warehouse finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	176		65
Provision (recovery) for loan losses	9		120
Charge offs	0		0
Recoveries	0		0
Ending balance	185		185
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					185	65
Total	176		65		185	65
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					186,697	65,000
Total loans and leases					186,697	65,000
Financing Receivable \| National Lending
Allowance for Credit Losses [Roll Forward]
Beginning balance	12,822		4,972	805
Provision (recovery) for loan losses	33,068	18,343	41,917	19,411
Charge offs	(6,503)	(339)	(9,306)	(468)
Recoveries	487	155	2,291	575
Ending balance	39,874		39,874	20,323
Ending balance: individually evaluated for impairment					141	0
Ending balance: collectively evaluated for impairment					39,733	4,972
Total	12,822		4,972	805	39,874	4,972	2,164
Loans:
Ending balance: individually evaluated for impairment					15,534	13,612
Ending balance: collectively evaluated for impairment					2,232,319	1,832,671
Total loans and leases					2,247,853	1,846,283
Loans Receivable
Allowance for Credit Losses [Roll Forward]
Beginning balance	8,468		8,068	6,729
Provision (recovery) for loan losses	250	0	500	0
Charge offs	(20)	0	(20)	(31)
Recoveries	100	57	250	57
Ending balance	8,798		8,798	6,755
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					8,798	8,068
Total	8,468		8,068	6,729	8,798	8,068	6,698
Loans:
Ending balance: individually evaluated for impairment					1,354	1,999
Ending balance: collectively evaluated for impairment					1,185,809	1,096,707
Total loans and leases					1,187,163	1,098,706
Loans Receivable \| Unallocated
Allowance for Credit Losses [Roll Forward]
Beginning balance				526
Provision (recovery) for loan losses		89		463
Charge offs		0		0
Recoveries		0		0
Ending balance				989
Total				526			900
Loans Receivable \| Commercial real estate and operating
Allowance for Credit Losses [Roll Forward]
Beginning balance	6,570		6,220	2,820
Provision (recovery) for loan losses	103	951	453	1,280
Charge offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	6,673		6,673	4,100
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					6,673	6,220
Total	6,570		6,220	2,820	6,673	6,220	3,149
Loans:
Ending balance: individually evaluated for impairment					0	451
Ending balance: collectively evaluated for impairment					869,917	790,439
Total loans and leases					869,917	790,890
Loans Receivable \| 1-4 Family Real Estate
Allowance for Credit Losses [Roll Forward]
Beginning balance	719		632	809
Provision (recovery) for loan losses	259	233	346	120
Charge offs	(20)	0	(20)	(31)
Recoveries	0	3	0	3
Ending balance	958		958	901
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					958	632
Total	719		632	809	958	632	665
Loans:
Ending balance: individually evaluated for impairment					134	94
Ending balance: collectively evaluated for impairment					256,945	247,224
Total loans and leases					257,079	247,318
Loans Receivable \| Agricultural real estate and operating
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,179		1,216	2,574
Provision (recovery) for loan losses	(112)	(1,273)	(299)	(1,863)
Charge offs	0	0	0	0
Recoveries	100	$ 54	250	54
Ending balance	1,167		1,167	765
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					1,167	1,216
Total	$ 1,179		$ 1,216	$ 2,574	1,167	1,216	$ 1,984
Loans:
Ending balance: individually evaluated for impairment					1,220	1,454
Ending balance: collectively evaluated for impairment					58,947	59,044
Total loans and leases					$ 60,167	$ 60,498

LOANS AND LEASES, NET - Asset Classification of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	$ 3,435,016	$ 2,944,989
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,241,473	2,783,536
Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,002	15,235
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	154,908	121,639
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	23,633	24,579
Financing Receivable
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,247,853	1,846,283
Financing Receivable \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,086,618	1,716,336
Financing Receivable \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	146,216	116,334
Financing Receivable \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,019	13,613
Financing Receivable \| Asset based lending
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	572,210	477,917
Financing Receivable \| Asset based lending \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	493,351	418,635
Financing Receivable \| Asset based lending \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Asset based lending \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	72,894	57,877
Financing Receivable \| Asset based lending \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,965	1,405
Financing Receivable \| Factoring
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	287,955	284,221
Financing Receivable \| Factoring \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	237,880	248,246
Financing Receivable \| Factoring \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Factoring \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	44,041	32,644
Financing Receivable \| Factoring \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	6,034	3,331
Financing Receivable \| Lease financing
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	321,414	265,315
Financing Receivable \| Lease financing \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	303,742	252,487
Financing Receivable \| Lease financing \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Lease financing \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	14,652	3,951
Financing Receivable \| Lease financing \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,020	8,877
Financing Receivable \| Insurance premium finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	307,875	337,877
Financing Receivable \| Insurance premium finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	307,875	336,296
Financing Receivable \| Insurance premium finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Insurance premium finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	1,581
Financing Receivable \| Insurance premium finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| SBA/USDA
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	77,481	59,374
Financing Receivable \| SBA/USDA \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	63,428	39,093
Financing Receivable \| SBA/USDA \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| SBA/USDA \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	14,053	20,281
Financing Receivable \| SBA/USDA \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Other commercial finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	98,956	85,145
Financing Receivable \| Other commercial finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	98,380	85,145
Financing Receivable \| Other commercial finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Other commercial finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	576	0
Financing Receivable \| Other commercial finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Commercial finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,665,891	1,509,849
Financing Receivable \| Commercial finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,504,656	1,379,902
Financing Receivable \| Commercial finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Commercial finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	146,216	116,334
Financing Receivable \| Commercial finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,019	13,613
Financing Receivable \| Consumer credit products
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable \| Consumer credit products \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable \| Consumer credit products \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Consumer credit products \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Consumer credit products \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Other consumer finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable \| Other consumer finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable \| Other consumer finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Other consumer finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Other consumer finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Consumer finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable \| Consumer finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable \| Consumer finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Consumer finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Consumer finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Tax services
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable \| Tax services \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable \| Tax services \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Tax services \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Tax services \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Warehouse finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable \| Warehouse finance \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable \| Warehouse finance \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Warehouse finance \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable \| Warehouse finance \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Receivable
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,187,163	1,098,706
Loans Receivable \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,154,855	1,067,200
Loans Receivable \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,002	15,235
Loans Receivable \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	8,692	5,305
Loans Receivable \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	8,614	10,966
Loans Receivable \| Commercial real estate and operating
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	869,917	790,890
Loans Receivable \| Commercial real estate and operating \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	857,897	778,445
Loans Receivable \| Commercial real estate and operating \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	6,672	12,251
Loans Receivable \| Commercial real estate and operating \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,348	194
Loans Receivable \| Commercial real estate and operating \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Receivable \| Consumer one-to-four family real estate and other
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	257,079	247,318
Loans Receivable \| Consumer one-to-four family real estate and other \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	253,698	246,463
Loans Receivable \| Consumer one-to-four family real estate and other \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,999	537
Loans Receivable \| Consumer one-to-four family real estate and other \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	306	239
Loans Receivable \| Consumer one-to-four family real estate and other \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	76	79
Loans Receivable \| Agricultural real estate and operating
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	60,167	60,498
Loans Receivable \| Agricultural real estate and operating \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	43,260	42,292
Loans Receivable \| Agricultural real estate and operating \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,331	2,447
Loans Receivable \| Agricultural real estate and operating \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,038	4,872
Loans Receivable \| Agricultural real estate and operating \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	$ 8,538	$ 10,887

LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	$ 3,435,016	$ 2,944,989
Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	29,716	38,851
Current	3,405,300	2,906,138
Total loans and leases	3,435,016	2,944,989
Performing Financial Instruments \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	16,561	24,022
Performing Financial Instruments \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,127	5,297
Performing Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	8,028	9,532
Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	9,618	10,201
Non-accrual balance	2,860	2,864
Nonperforming Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	6,758	7,337
Financing Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,247,853	1,846,283
Financing Receivable \| Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	572,210	477,917
Financing Receivable \| Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	287,955	284,221
Financing Receivable \| Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	321,414	265,315
Financing Receivable \| Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	307,875	337,877
Financing Receivable \| SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	77,481	59,374
Financing Receivable \| Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	98,956	85,145
Financing Receivable \| Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,665,891	1,509,849
Financing Receivable \| Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable \| Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable \| Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable \| Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable \| Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable \| Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	26,809	38,667
Current	2,221,044	1,807,616
Total loans and leases	2,247,853	1,846,283
Financing Receivable \| Performing Financial Instruments \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	16,180	23,917
Financing Receivable \| Performing Financial Instruments \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,877	5,297
Financing Receivable \| Performing Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,752	9,453
Financing Receivable \| Performing Financial Instruments \| Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,589	3,480
Current	569,621	474,437
Total loans and leases	572,210	477,917
Financing Receivable \| Performing Financial Instruments \| Asset based lending \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	799	1,235
Financing Receivable \| Performing Financial Instruments \| Asset based lending \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,712	2,151
Financing Receivable \| Performing Financial Instruments \| Asset based lending \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	78	94
Financing Receivable \| Performing Financial Instruments \| Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	287,955	284,221
Total loans and leases	287,955	284,221
Financing Receivable \| Performing Financial Instruments \| Factoring \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Factoring \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Factoring \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	12,279	19,995
Current	309,135	245,320
Total loans and leases	321,414	265,315
Financing Receivable \| Performing Financial Instruments \| Lease financing \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	9,291	16,542
Financing Receivable \| Performing Financial Instruments \| Lease financing \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,227	532
Financing Receivable \| Performing Financial Instruments \| Lease financing \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,761	2,921
Financing Receivable \| Performing Financial Instruments \| Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,416	5,864
Current	303,459	332,013
Total loans and leases	307,875	337,877
Financing Receivable \| Performing Financial Instruments \| Insurance premium finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,009	1,864
Financing Receivable \| Performing Financial Instruments \| Insurance premium finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	767	1,019
Financing Receivable \| Performing Financial Instruments \| Insurance premium finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,640	2,981
Financing Receivable \| Performing Financial Instruments \| SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,078	1,067
Current	76,403	58,307
Total loans and leases	77,481	59,374
Financing Receivable \| Performing Financial Instruments \| SBA/USDA \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,078	1,067
Financing Receivable \| Performing Financial Instruments \| SBA/USDA \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| SBA/USDA \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	98,956	85,145
Total loans and leases	98,956	85,145
Financing Receivable \| Performing Financial Instruments \| Other commercial finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Other commercial finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Other commercial finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	20,362	30,406
Current	1,645,529	1,479,443
Total loans and leases	1,665,891	1,509,849
Financing Receivable \| Performing Financial Instruments \| Commercial finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	13,177	20,708
Financing Receivable \| Performing Financial Instruments \| Commercial finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,706	3,702
Financing Receivable \| Performing Financial Instruments \| Commercial finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,479	5,996
Financing Receivable \| Performing Financial Instruments \| Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,167	963
Current	137,450	79,642
Total loans and leases	139,617	80,605
Financing Receivable \| Performing Financial Instruments \| Consumer credit products \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,080	532
Financing Receivable \| Performing Financial Instruments \| Consumer credit products \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	284
Financing Receivable \| Performing Financial Instruments \| Consumer credit products \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	420	147
Financing Receivable \| Performing Financial Instruments \| Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,613	6,225
Current	167,211	183,531
Total loans and leases	170,824	189,756
Financing Receivable \| Performing Financial Instruments \| Other consumer finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,256	2,677
Financing Receivable \| Performing Financial Instruments \| Other consumer finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	504	1,311
Financing Receivable \| Performing Financial Instruments \| Other consumer finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,853	2,237
Financing Receivable \| Performing Financial Instruments \| Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,780	7,188
Current	304,661	263,173
Total loans and leases	310,441	270,361
Financing Receivable \| Performing Financial Instruments \| Consumer finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,336	3,209
Financing Receivable \| Performing Financial Instruments \| Consumer finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,171	1,595
Financing Receivable \| Performing Financial Instruments \| Consumer finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,273	2,384
Financing Receivable \| Performing Financial Instruments \| Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	1,073
Current	84,157	0
Total loans and leases	84,824	1,073
Financing Receivable \| Performing Financial Instruments \| Tax services \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	0
Financing Receivable \| Performing Financial Instruments \| Tax services \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Tax services \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	1,073
Financing Receivable \| Performing Financial Instruments \| Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	186,697	65,000
Total loans and leases	186,697	65,000
Financing Receivable \| Performing Financial Instruments \| Warehouse finance \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Warehouse finance \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Performing Financial Instruments \| Warehouse finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable \| Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	7,342	10,122
Non-accrual balance	2,784	2,864
Financing Receivable \| Nonperforming Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	4,558	7,258
Financing Receivable \| Nonperforming Financial Instruments \| Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	266	94
Non-accrual balance	266	0
Financing Receivable \| Nonperforming Financial Instruments \| Asset based lending \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	94
Financing Receivable \| Nonperforming Financial Instruments \| Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	716	0
Non-accrual balance	716	0
Financing Receivable \| Nonperforming Financial Instruments \| Factoring \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,447	3,590
Non-accrual balance	1,802	2,864
Financing Receivable \| Nonperforming Financial Instruments \| Lease financing \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	645	726
Financing Receivable \| Nonperforming Financial Instruments \| Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,640	2,981
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Insurance premium finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	1,640	2,981
Financing Receivable \| Nonperforming Financial Instruments \| SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| SBA/USDA \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Other commercial finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	5,069	6,665
Non-accrual balance	2,784	2,864
Financing Receivable \| Nonperforming Financial Instruments \| Commercial finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,285	3,801
Financing Receivable \| Nonperforming Financial Instruments \| Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	420	147
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Consumer credit products \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	420	147
Financing Receivable \| Nonperforming Financial Instruments \| Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,853	2,237
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Other consumer finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	1,853	2,237
Financing Receivable \| Nonperforming Financial Instruments \| Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,273	2,384
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Consumer finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,273	2,384
Financing Receivable \| Nonperforming Financial Instruments \| Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	1,073
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Tax services \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	1,073
Financing Receivable \| Nonperforming Financial Instruments \| Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable \| Nonperforming Financial Instruments \| Warehouse finance \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Loans Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,187,163	1,098,706
Loans Receivable \| Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	869,917	790,890
Loans Receivable \| 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	257,079	247,318
Loans Receivable \| Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	60,167	60,498
Loans Receivable \| Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,907	184
Current	1,184,256	1,098,522
Total loans and leases	1,187,163	1,098,706
Loans Receivable \| Performing Financial Instruments \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	381	105
Loans Receivable \| Performing Financial Instruments \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	250	0
Loans Receivable \| Performing Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,276	79
Loans Receivable \| Performing Financial Instruments \| Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	271	0
Current	869,646	790,890
Total loans and leases	869,917	790,890
Loans Receivable \| Performing Financial Instruments \| Commercial real estate and operating \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	271	0
Loans Receivable \| Performing Financial Instruments \| Commercial real estate and operating \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable \| Performing Financial Instruments \| Commercial real estate and operating \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable \| Performing Financial Instruments \| 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	436	184
Current	256,643	247,134
Total loans and leases	257,079	247,318
Loans Receivable \| Performing Financial Instruments \| 1-4 Family Real Estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	110	105
Loans Receivable \| Performing Financial Instruments \| 1-4 Family Real Estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	250	0
Loans Receivable \| Performing Financial Instruments \| 1-4 Family Real Estate \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	76	79
Loans Receivable \| Performing Financial Instruments \| Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,200	0
Current	57,967	60,498
Total loans and leases	60,167	60,498
Loans Receivable \| Performing Financial Instruments \| Agricultural real estate and operating \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable \| Performing Financial Instruments \| Agricultural real estate and operating \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable \| Performing Financial Instruments \| Agricultural real estate and operating \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,200	0
Loans Receivable \| Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,276	79
Non-accrual balance	76	0
Loans Receivable \| Nonperforming Financial Instruments \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,200	79
Loans Receivable \| Nonperforming Financial Instruments \| Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Loans Receivable \| Nonperforming Financial Instruments \| Commercial real estate and operating \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Loans Receivable \| Nonperforming Financial Instruments \| 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	76	79
Non-accrual balance	76	0
Loans Receivable \| Nonperforming Financial Instruments \| 1-4 Family Real Estate \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	79
Loans Receivable \| Nonperforming Financial Instruments \| Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,200	0
Non-accrual balance	0	0
Loans Receivable \| Nonperforming Financial Instruments \| Agricultural real estate and operating \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	$ 2,200	$ 0

LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Loans without a specific valuation allowance
Recorded Balance	$ 15,695		$ 15,695		$ 10,198
Unpaid Principal Balance	17,370		17,370		10,528
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,413
Specific allowance	141		141		588
Average Recorded Investment	13,851	$ 2,614	14,590	$ 2,020
Recognized Interest Income	122	61	247	83
Financing Receivable
Loans without a specific valuation allowance
Recorded Balance	14,341		14,341		8,199
Unpaid Principal Balance	15,996		15,996		8,529
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,663
Specific allowance	141		141		588
Average Recorded Investment	12,032	0	12,673	0
Recognized Interest Income	112	0	206	0
Financing Receivable \| Asset based lending
Loans without a specific valuation allowance
Recorded Balance	4,887		4,887		1,325
Unpaid Principal Balance	5,399		5,399		1,325
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,078		1,078		79
Unpaid principal balance	1,078		1,078		79
Specific allowance	62		62		22
Average Recorded Investment	3,569	0	2,648	0
Recognized Interest Income	95	0	174	0
Financing Receivable \| Factoring
Loans without a specific valuation allowance
Recorded Balance	6,009		6,009		1,383
Unpaid Principal Balance	7,084		7,084		1,713
Loans with a specific valuation allowance [Abstract]
Recorded investment	25		25		1,948
Unpaid principal balance	25		25		2,198
Specific allowance	12		12		49
Average Recorded Investment	3,131	0	2,956	0
Recognized Interest Income	0	0	5	0
Financing Receivable \| Lease financing
Loans without a specific valuation allowance
Recorded Balance	2,209		2,209		5,491
Unpaid Principal Balance	2,209		2,209		5,491
Loans with a specific valuation allowance [Abstract]
Recorded investment	90		90		3,386
Unpaid principal balance	90		90		3,386
Specific allowance	67		67		517
Average Recorded Investment	4,100	0	5,842	0
Recognized Interest Income	7	0	17	0
Financing Receivable \| Commercial finance
Loans without a specific valuation allowance
Recorded Balance	13,105		13,105		8,199
Unpaid Principal Balance	14,692		14,692		8,529
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,663
Specific allowance	141		141		588
Average Recorded Investment	10,800	0	11,446	0
Recognized Interest Income	102	0	196	0
Financing Receivable \| Other consumer finance
Loans without a specific valuation allowance
Recorded Balance	1,236		1,236
Unpaid Principal Balance	1,304		1,304
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,232	0	1,227	0
Recognized Interest Income	10	0	10	0
Financing Receivable \| Consumer finance
Loans without a specific valuation allowance
Recorded Balance	1,236		1,236
Unpaid Principal Balance	1,304		1,304
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,232	0	1,227	0
Recognized Interest Income	10	0	10	0
Loans Receivable
Loans without a specific valuation allowance
Recorded Balance	1,354		1,354		1,999
Unpaid Principal Balance	1,373		1,373		1,999
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,819	2,614	1,917	2,020
Recognized Interest Income	10	61	41	83
Loans Receivable \| Commercial real estate and operating
Loans without a specific valuation allowance
Recorded Balance					405
Unpaid Principal Balance					405
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	268	705	336	840
Recognized Interest Income	0	5	4	10
Loans Receivable \| 1-4 Family Real Estate
Loans without a specific valuation allowance
Recorded Balance	134		134		140
Unpaid Principal Balance	153		153		140
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	137	229	138	165
Recognized Interest Income	0	6	2	9
Loans Receivable \| Agricultural real estate and operating
Loans without a specific valuation allowance
Recorded Balance	1,220		1,220		1,454
Unpaid Principal Balance	1,220		1,220		$ 1,454
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,414	1,680	1,443	1,015
Recognized Interest Income	$ 10	$ 50	$ 35	$ 64

LOANS AND LEASES, NET - Narrative and Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans transferred to held for sale			$ 39,452	$ 0
Loans transferred to held for sale			0	0
Originations of Loans Held-for-sale			42,961	0
Increase in loans held for sale			$ (8,760)	0
Percentage of specific allowance for losses			100.00%
Loans and Leases Receivable, Net Amount	$ 3,389,308		$ 3,389,308		$ 2,931,699
Proceeds from sales			36,461	0
Gain (Loss) on Sales of Loans, Net			1,650	0
Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales	$ 28,051	$ 0	$ 34,904	$ 0
Residential Mortgage \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage Loan, Required Mortgage Insurance, Loan-To-Value Ratio Threshold Exposure, Maximum			80.00%
Residential Mortgage \| Maximum \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			30 years
Mortgage Loan, Loan-To-Value Ratio, Appraised Value			100.00%
Mortgage Loan, Loan-To-Value Ratio, Actual Majority of Loans			80.00%
Fixed Rate \| Maximum \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			30 years
Fixed Rate \| Financing Receivable \| Maximum \| Agricultural real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			1 year
Fixed Rate \| Financing Receivable \| Maximum \| Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			10 years
Mortgage Loan, Loan-To-Value Ratio, Appraised Value			75.00%
Fixed Rate \| Financing Receivable \| Minimum \| Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			5 years
Adjustable Rate \| Maximum \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			10 years
Adjustable Rate \| Minimum \| 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			5 years
Adjustable Rate \| Financing Receivable \| Maximum \| Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			25 years
Adjustable Rate \| Financing Receivable \| Minimum \| Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			20 years

LOANS AND LEASES, NET - Troubled Debt Restructured Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019 USD ($) loan	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)
Financing Receivable, Modifications [Line Items]
Foreclosed real estate and repossessed assets	$ 29,548		$ 29,548		$ 31,638
Loans Receivable
Financing Receivable, Modifications [Line Items]
TDRs number of contracts \| loan	0
TDRs recorded investment		$ 2,600	100	$ 3,800
TDRs subsequent default, recorded investment			900	$ 100
Financing Receivable
Financing Receivable, Modifications [Line Items]
TDRs recorded investment	$ 1,500		$ 1,600

EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Mar. 31, 2019

Mar. 31, 2018

Earnings Per Common Share, Basic and Diluted [Abstract]

Net income attributable to Meta Financial Group, Inc.

$ 32,120

$ 31,436

$ 47,518

$ 36,106

Weighted average common shares outstanding (in shares)

39,429,595

29,061,180

39,381,682

29,015,376

Basic income per common share (in dollars per share)

^[1]

$ 0.81

$ 1.08

$ 1.21

$ 1.24

Outstanding options - based upon the two-class method (in shares)

67,237

118,956

68,581

115,038

Weighted average common and dilutive potential common shares outstanding (in shares)

39,496,832

29,180,136

39,450,263

29,130,414

Diluted income per common share (in dollars per share)

^[1]

$ 0.81

$ 1.08

$ 1.20

$ 1.24

[1]	All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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