META FINANCIAL GROUP INC, 10-K filed on 12/14/2016
Annual Report
v3.6.0.2
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2016
Dec. 08, 2016
Mar. 31, 2016
Document and Entity Information [Abstract]      
Entity Registrant Name META FINANCIAL GROUP INC    
Entity Central Index Key 0000907471    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Public Float     $ 360.0
Entity Common Stock, Shares Outstanding   9,188,292  
Document Fiscal Year Focus 2016    
Document Fiscal Period Focus FY    
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2016    
v3.6.0.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
ASSETS    
Cash and cash equivalents $ 773,830 $ 27,658
Investment securities available-for-sale 910,309 679,504
Mortgage-backed securities available-for-sale 558,940 576,583
Investment securities held to maturity 486,095 279,167
Mortgage-backed securities held to maturity 133,758 66,577
Loans receivable - net of allowance for loan losses of $5,635 at September 30, 2016 and $6,255 at September 30, 2015 919,470 706,255
Federal Home Loan Bank stock, at cost 47,512 24,410
Accrued interest receivable 17,199 13,352
Premises, furniture, and equipment, net 18,626 17,393
Bank-owned life insurance 57,486 45,830
Foreclosed real estate and repossessed assets 76 0
Goodwill 36,928 36,928
Intangible assets 28,921 33,577
Prepaid assets 9,443 9,360
Deferred taxes 0 6,997
MPS accounts receivable 6,334 5,337
Other assets 1,492 777
Total assets 4,006,419 2,529,705
LIABILITIES    
Non-interest-bearing checking 2,167,522 1,449,101
Interest-bearing checking 38,077 33,320
Savings deposits 50,742 41,720
Money market deposits 47,749 42,222
Time certificates of deposit 125,992 91,171
Total deposits 2,430,082 1,657,534
Short-term debt 1,095,118 544,007
Long-term debt 92,460 19,453
Accrued interest payable 875 272
Contingent liability 0 331
Deferred taxes 4,600 0
Accrued expenses and other liabilities 48,309 36,773
Total liabilities 3,671,444 2,258,370
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2016 and 2015, respectively 0 0
Common stock, $.01 par value; 15,000,000 shares authorized, 8,523,641 and 8,183,272 shares issued, 8,523,641 and 8,163,022 shares outstanding at September 30, 2016 and 2015, respectively 85 82
Additional paid-in capital 184,780 170,749
Retained earnings 127,190 98,359
Accumulated other comprehensive income 22,920 2,455
Treasury stock, no common shares, at cost, at September 30, 2016 and 20,250 common shares at September 30, 2015 0 (310)
Total stockholders’ equity 334,975 271,335
Total liabilities and stockholders’ equity $ 4,006,419 $ 2,529,705
v3.6.0.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
ASSETS    
Loans receivable, allowance for loan losses $ 5,635 $ 6,255
STOCKHOLDERS’ EQUITY    
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 15,000,000 10,000,000
Common stock, shares issued (in shares) 8,523,641 8,183,272
Common stock, shares outstanding (in shares) 8,523,641 8,163,022
Treasury stock (in shares) 0 20,250
v3.6.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Interest and dividend income:      
Loans receivable, including fees $ 36,187 $ 29,565 $ 19,674
Mortgage-backed securities 15,771 13,979 15,343
Other investments 29,438 18,063 13,643
Total interest and dividend income 81,396 61,607 48,660
Interest expense:      
Deposits 614 726 965
FHLB advances and other borrowings 3,477 1,661 1,433
Total interest expense 4,091 2,387 2,398
Net interest income 77,305 59,220 46,262
Provision for loan losses 4,605 1,465 1,150
Net interest income after provision for loan losses 72,700 57,755 45,112
Non-interest income:      
Tax product fees 23,347 0 0
Card fees 70,533 54,542 48,738
Bank-owned life insurance income 4,949 2,030 1,139
Loan fees 1,656 2,348 981
Deposit fees 603 593 616
Gain (loss) on sale of securities available-for-sale, net (Includes ($326), ($1,634), and $107 reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the fiscal years ended September 30, 2016, 2015 and 2014, respectively) (326) (1,634) 107
Gain (loss) on foreclosed real estate 0 28 (93)
Other income 8 267 250
Total non-interest income 100,770 58,174 51,738
Non-interest expense:      
Compensation and benefits 61,675 46,493 38,155
Tax product expense 8,648 0 0
Card processing expense 22,263 16,508 15,487
Occupancy and equipment expense 13,999 11,399 8,979
Legal and consulting expense 4,824 4,978 4,145
Data processing expense 1,972 1,347 1,316
Marketing expense 1,334 1,537 1,034
Amortization expense 4,828 1,349 77
Other expense 15,105 12,895 9,038
Total non-interest expense 134,648 96,506 78,231
Income before income tax expense 38,822 19,423 18,619
Income tax expense (Includes ($118), ($597), and $39 income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2016, 2015 and 2014, respectively) 5,602 1,368 2,906
Net income $ 33,220 $ 18,055 $ 15,713
Earnings per common share:      
Basic (in dollars per share) $ 3.95 $ 2.68 $ 2.57
Diluted (in dollars per share) $ 3.92 $ 2.66 $ 2.53
v3.6.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Non-interest income:      
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ (326) $ (1,634) $ 107
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) $ (118) $ (597) $ 39
v3.6.0.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]      
Net income $ 33,220 $ 18,055 $ 15,713
Other comprehensive income:      
Change in net unrealized gain on securities 31,965 7,723 26,790
Losses (gains) realized in net income 326 1,634 (107)
Total available for sale adjustment 32,291 9,357 26,683
Deferred income tax effect 11,826 3,493 9,807
Total other comprehensive income 20,465 5,864 16,876
Total comprehensive income $ 53,685 $ 23,919 $ 32,589
v3.6.0.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive (Loss), Net of Tax [Member]
Treasury Stock [Member]
Balance at Sep. 30, 2013 $ 142,984 $ 61 $ 92,963 $ 71,268 $ (20,285) $ (1,023)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock ($0.52 per share) (3,184)     (3,184)    
Issuance of common shares from the sales of equity securities (51) 1 (52)      
Issuance of common shares due to issuance of stock options and restricted stock 2,376   2,080     296
Issuance of common shares due to acquisition 0          
Stock compensation 88   88      
Net change in unrealized gains (losses) on securities, net of income taxes 16,876       16,876  
Net income 15,713     15,713    
Balance at Sep. 30, 2014 174,802 62 95,079 83,797 (3,409) (727)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock ($0.52 per share) (3,493)     (3,493)    
Issuance of common shares from the sales of equity securities 51,168 14 50,737     417
Issuance of common shares due to issuance of stock options and restricted stock 378   378      
Issuance of common shares due to acquisition 24,303 6 24,297      
Stock compensation 258   258      
Net change in unrealized gains (losses) on securities, net of income taxes 5,864       5,864  
Net income 18,055     18,055    
Balance at Sep. 30, 2015 271,335 82 170,749 98,359 2,455 (310)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock ($0.52 per share) (4,389)     (4,389)    
Issuance of common shares from the sales of equity securities 11,500 2 11,498      
Issuance of common shares due to issuance of stock options and restricted stock 2,357 1 2,046     310
Issuance of common shares due to acquisition 0          
Stock compensation 487   487      
Net change in unrealized gains (losses) on securities, net of income taxes 20,465       20,465  
Net income 33,220     33,220    
Balance at Sep. 30, 2016 $ 334,975 $ 85 $ 184,780 $ 127,190 $ 22,920 $ 0
v3.6.0.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Cash dividends declared on common stock (in dollars per share) $ 0.52 $ 0.52 $ 0.52
v3.6.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:      
Net income $ 33,220 $ 18,055 $ 15,713
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation, amortization and accretion, net 35,617 28,882 18,147
Provision (recovery) for loan losses 4,605 1,465 1,150
Provision (recovery) for deferred taxes (230) (3,896) (1,755)
(Gain) loss on other assets 104 6 (43)
(Gain) loss on foreclosed real estate 0 (28) 93
Losses (gains) realized in net income 326 1,634 (107)
Capital lease obligations interest expense 125 131 0
Net change in accrued interest receivable (3,847) (2,130) (2,640)
Change in bank-owned life insurance value (1,656) (1,225) (1,639)
Net change in other assets (1,968) (672) (807)
Net change in accrued interest payable 603 (46) 27
Net change in accrued expenses and other liabilities 11,112 6,780 (2,326)
Net cash provided by operating activities 78,011 48,956 25,813
Cash flows from investing activities:      
Purchase of securities available-for-sale (603,995) (810,624) (491,416)
Proceeds from sales of securities available-for-sale 285,508 566,371 166,804
Proceeds from maturities and principal repayments of securities available-for-sale 116,333 124,558 81,754
Purchase of securities held to maturity (298,869) (72,759) (15,117)
Proceeds from maturities and principal repayments of securities held to maturity 20,465 9,879 16,802
Purchase of bank-owned life insurance (10,000) (10,000) (500)
Proceeds from bank-owned life insurance death benefit 0 864 0
Loans purchased 0 0 (343)
Loans sold (89) (5,462) (11,747)
Net change in loans receivable (217,807) (135,187) (101,639)
Proceeds from sales of foreclosed real estate 0 86 8
Cash paid for acquisitions 0 (125,314) 0
Cash received upon acquisitions 0 9,768 0
Federal Home Loan Bank stock purchases (860,902) (544,324) (445,971)
Federal Home Loan Bank stock redemptions 837,800 541,160 434,720
Proceeds from the sale of premises and equipment 55 2,100 1,178
Purchase of premises and equipment (6,979) (5,031) (2,329)
Net cash used in investing activities (738,480) (453,915) (367,796)
Cash flows from financing activities:      
Net change in checking, savings, and money market deposits 737,727 334,375 48,304
Net change in time deposits 34,821 (43,382) 2,954
Proceeds from FHLB 100,000 0 0
Net change in federal funds 452,000 70,000 280,000
Net change in securities sold under agreements to repurchase (969) (6,404) 1,265
Proceeds from long term debt 75,000 0 0
Payment of debt issuance costs (1,767) 0 0
Principal payments on capital lease obligations (126) (116) 0
Cash dividends paid (4,389) (3,493) (3,184)
Stock compensation 487 258 88
Proceeds from issuance of common stock 13,857 51,547 2,325
Net cash provided by financing activities 1,406,641 402,785 331,752
Net change in cash and cash equivalents 746,172 (2,174) (10,231)
Cash and cash equivalents at beginning of year 27,658 29,832 40,063
Cash and cash equivalents at end of year 773,830 27,658 29,832
Cash paid during the year for:      
Interest 3,488 2,433 2,371
Income taxes 5,898 5,277 4,451
Franchise taxes 98 98 109
Other taxes 79 48 0
Supplemental disclosure of non-cash investing and financing activities:      
Common stock issued for acquisition 0 (24,303) 0
Capital lease obligation 0 (2,259) 0
Securities transferred from available-for-sale to held to maturity 0 310 0
Purchase of available-for-sale securities accrued, not paid 0 (7,877) 0
Purchase of held-to-maturity securities accrued, not paid 0 (3,000) 0
Loans transferred to foreclosed real estate $ 76 $ 54 $ 0
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Sep. 30, 2016
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
 
The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency and First Services Financial Limited, which offered noninsured investment products and was dissolved on December 3, 2013.  The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities.  The Trust is not included in the consolidated financial statements of the Company.  All significant intercompany balances and transactions have been eliminated.
 
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
 
The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services.  Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans.  The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis for the MPS division.  The Company operates in the banking industry, which accounts for the majority of its revenues and assets.  The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
 
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
 
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments.  These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
 
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
 
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions.  The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and FHLB advances with terms less than 90 days.  The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits.  The total of those reserve balances was $0 and $4.1 million at September 30, 2016, and 2015, respectively.  The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions.  At September 30, 2016, the Company had no interest-bearing deposits held at the FHLB and $512.9 million in interest-bearing deposits held at the FRB.  At September 30, 2016, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.

SECURITIES
 
GAAP require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities.
 
The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.
 
The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
 
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2016, 2015 and 2014, there was no other-than-temporary impairment recorded.
 
LOANS RECEIVABLE
 
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans.
 
Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued.  Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status.
 
Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method.
 



As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.
 
The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing.  The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.
 
Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income.  The loan will remain on a non-accrual status until six months of good payment history.
 
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
 
The Company, from time to time, sells loan participations, generally without recourse.  Sold loans are not included in the consolidated financial statements.  The Bank generally retains the right to service the sold loans for a fee.  At September 30, 2016 and 2015, the Bank was servicing loans for others with aggregate unpaid principal balances of $19.4 million and $22.2 million, respectively.
 
ALLOWANCE FOR LOAN LOSSES
 
The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.  The allowance consists of specific, general and unallocated components.
 
The specific component relates to impaired loans.  Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories.  Non-accrual loans and all TDRs are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.
 


The general reserve covers loans not considered impaired and is comprised of both quantitative and qualitative analysis.  A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans.  The three main assumptions for the quantitative components for 2016 and 2015 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

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

•
In prior periods, management utilized a five-year historical loss experience methodology. A seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors.

•
The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off.  The LEP is only applied to the non-classified loan general reserve.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment.
 
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.
 
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 
Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis.  Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses.  Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs.
 
INCOME TAXES
 
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

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

TRANSFERS OF FINANCIAL ASSETS
 
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1)the assets have been legally isolated from the Company, (2)the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3)the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
 
BANK-OWNED LIFE INSURANCE
 
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
 
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
 
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2016 and 2015, all shares in the ESOP were allocated.
 
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
 
The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements.

INTANGIBLE ASSETS
 
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 
The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security.  Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction.  Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability.  The securities underlying the agreements remain in the asset accounts of the Company.
 
REVENUE RECOGNITION
 
Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment.  Income from service and other customer charges is recognized as earned.  Revenue within the MPS division is recognized as services are performed and service charges are earned in accordance with the terms of the various programs.
 
EARNINGS PER COMMON SHARE (“EPS”)
 
Basic EPS is based on the net income divided by the weighted-average number of common shares outstanding during the period.  Allocated ESOP shares are considered outstanding for earnings per common share calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding.  Diluted EPS shows the dilutive effect of additional potential common shares issuable under stock option plans.
 




COMPREHENSIVE INCOME (LOSS)
 
Comprehensive income (loss) consists of net income and other comprehensive income or loss.  Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
 
STOCK COMPENSATION
 
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date.  The Company utilizes projections for forfeitures on its stock-based compensation.

RECLASSIFICATION OF PRIOR PERIOD BALANCES

The Company reclassified borrowings during the fourth quarter of fiscal year 2016 into Short-term debt and Long-term debt. Short-term debt are classified as borrowings being due in one year or less, while Long-term debt are borrowings that have a maturity date of greater than one year. All prior year amounts have also been reclassified to conform to the new presentation.


NEW ACCOUNTING PRONOUNCEMENTS

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

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and ensuring our systems are capturing data applicable to the standard.

ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

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

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company is currently taking inventory of all leases and analyzing what their treatment will be under the new guidance.

ASU No 2015-16 – Business Combinations (Topic 805):  Simplifying the Accounting for Measurement-Period Adjustments
 
This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined.  Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date.  This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company has adopted the standard and it had an immaterial impact.
 





ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)
 
This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing our different prepaid card programs and income streams to ascertain how breakage will be recognized under the standard.
 
ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
 
This ASU eliminates the concept of extraordinary items from U.S. GAAP.  The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence.  This update is in effect for annual and interim periods beginning after December 15, 2015, and has had an immaterial impact on the Company’s consolidated financial statements.

ASU No. 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis
 
This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities.  This update is in effect for annual and interim periods beginning after December 15, 2015, and has had an immaterial impact to the Company's consolidated financial statements.

ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

This ASU provides guidance on balance sheet presentation requirements for debt issuance costs and debt discount and premium. The objective of this ASU is to simplify presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements.
        


ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.
v3.6.0.2
ACQUISITIONS
 12 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
 
The Company completed two acquisitions for the fiscal year ended September 30, 2015. The two purchase transactions are detailed below.
 
AFS/IBEX
 
On December 2, 2014, the Company, through its wholly-owned subsidiary, MetaBank, purchased substantially all of the commercial loan portfolio and related assets of AFS/IBEX Financial Services, Inc. (“AFS/IBEX”), an insurance premium finance company based in Dallas, Texas.  Following the acquisition, MetaBank established its AFS/IBEX division, which provides short-term, collateralized financing to facilitate the purchase of insurance for commercial property, casualty, and liability risk through a network of over 1,300 independent insurance agencies throughout the United States.  In addition to its operations at the Bank’s main office, the AFS/IBEX division has two agency offices, one in Dallas, Texas, and one in southern California.
 
Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the December 2, 2014 tangible book value of AFS/IBEX, was approximately $99.3 million, all of which was paid in cash.  The Company acquired assets with approximate fair values of $6.9 million for cash and cash equivalents, $74.1 million net loans receivable, $0.7 million other assets, $8.2 million intangible assets including customer relationships, trademark, and non-compete agreements, and $11.6 million goodwill.  The Company also assumed liabilities of $2.2 million consisting of accrued expenses and other liabilities.  All amounts are at estimated fair market values.

The following table represents the approximate fair value of assets acquired and liabilities assumed of AFS/IBEX on the consolidated balance sheet as of December 2, 2014:
 
 
As of December 2, 2014
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
99,255

Total consideration paid
99,255

 
 

Fair value of assets acquired
 

Cash and cash equivalents
6,947

Loans receivable, net
74,120

Prepaid assets
156

Furniture and equipment, net
449

Intangible assets
8,213

Other assets
6

Total assets
89,891

Fair value of liabilities assumed
 

Accrued expenses and other liabilities
2,214

Total liabilities assumed
2,214

Fair value of net assets acquired
87,677

Goodwill resulting from acquisition
$
11,578



The AFS/IBEX transaction has been accounted for under the acquisition method of accounting.  The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date.  The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities.
 
The Company recognized goodwill of $11.6 million, which is calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable assets acquired.  Goodwill resulted from expected operational synergies, an enhanced market area, and expanded product lines and is expected to be deductible for tax purposes.  The intangible assets consist primarily of customer relationships that will be amortized over 30 years and will be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill.
 
Acquired loans were recorded at fair value based on a discounted cash flow valuation which considered default rates, loss given defaults, and recovery rates, among other things.  No allowance for credit losses was carried over on December 2, 2014.  The Company recorded $7.6 million in revenue and $0.8 million in net income for AFS/IBEX during fiscal 2015.  In addition, the Company incurred transaction costs of approximately $0.6 million in 2015 in connection with the acquisition, which are included in legal and consulting and other expenses on our consolidated statement of operations for the year ended September 30, 2015.
 
This acquisition is not deemed significant to the overall Company’s financial statements.
 
REFUND ADVANTAGE
 
On September 8, 2015, the Company, through its wholly-owned subsidiary, MetaBank, purchased substantially all the assets and related liabilities of Fort Knox Financial Services Corporation and its subsidiary, Tax Product Services LLC (together “Refund Advantage”). Refund Advantage is a provider of integrated tax refund processing services.

Under the terms of the purchase agreement, the aggregate purchase price was approximately $50.4 million, of which $26.1 million was paid in cash and $24.3 million was issued in Meta common stock.  The Company acquired assets with approximate fair values of $2.8 million for cash and cash equivalents, $0.5 million other assets, $24.1 million intangible assets including customer relationships, trademark, and non-compete agreements, and $25.4 million goodwill.  The Company also assumed liabilities of $2.5 million consisting of accrued expenses and other liabilities.  All amounts are at estimated fair market values.
 
The following table represents the approximate fair value of assets acquired and liabilities assumed of Refund Advantage on the consolidated balance sheet as of September 8, 2015:

 
As of September 8, 2015
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
26,060

Stock issued
$
24,303

Total consideration paid
50,363

 
 

Fair value of assets acquired
 

Cash and cash equivalents
2,821

Prepaid assets
23

Furniture and equipment, net
55

Intangible assets
24,119

Other assets
457

Total assets
27,475

Fair value of liabilities assumed
 

Accrued expenses and other liabilities
2,463

Total liabilities assumed
2,463

Fair value of net assets acquired
25,012

Goodwill resulting from acquisition
$
25,351



The Refund Advantage transaction has been accounted for under the acquisition method of accounting.  The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date.  The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities.
 
The Company recognized goodwill of $25.4 million, which is calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable assets acquired.  Goodwill resulted from expected operational synergies, an enhanced market area, and expanded product lines and is expected to be deductible for tax purposes.  The intangible assets consist primarily of customer relationships that will be amortized over between 12 and 20 years and the Refund Advantage trademark, which will be amortized over 15 years and will be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill.
 
We incurred transaction costs of approximately $0.9 million in connection with the acquisition, which are included in legal and consulting and other expenses on our consolidated statement of operations for the year ended September 30, 2015.
v3.6.0.2
LOANS RECEIVABLE, NET
 12 Months Ended
Sep. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]  
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET

 Year-end loans receivable were as follows:
 
 
September 30, 2016
 
September 30, 2015
 
(Dollars in Thousands)
1-4 Family Real Estate
$
162,298

 
$
125,021

Commercial and Multi-Family Real Estate
422,932

 
310,199

Agricultural Real Estate
63,612

 
64,316

Consumer
37,094

 
33,527

Commercial Operating
31,271

 
29,893

Agricultural Operating
37,083

 
43,626

Premium Finance
171,604

 
106,505

Total Loans Receivable
925,894

 
713,087

 
 
 
 
Less:
 

 
 

Allowance for Loan Losses
(5,635
)
 
(6,255
)
Net Deferred Loan Origination Fees
(789
)
 
(577
)
Total Loans Receivable, Net
$
919,470

 
$
706,255



Annual activity in the allowance for loan losses was as follows:
 
Year ended September 30,
2016

 
2015

 
2014

 
(Dollars in Thousands)
Beginning balance
$
6,255

 
$
5,397

 
$
3,930

Provision for loan losses
4,605

 
1,465

 
1,150

Recoveries
147

 
123

 
367

Charge offs
(5,372
)
 
(730
)
 
(50
)
Ending balance
$
5,635

 
$
6,255

 
$
5,397


Allowance for Loan Losses and Recorded Investment in loans at September 30, 2016 and 2015 are as follows:
 
 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan losses
408

 
1,369

 
(21
)
 
748

 
338

 
1,045

 
914

 
(196
)
 
4,605

Charge offs
(32
)
 
(385
)
 
—

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

 
(5,372
)
Recoveries
—

 
27

 
—

 
11

 
—

 
2

 
107

 
—

 
147

Ending balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
10

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10

Ending balance: collectively evaluated for impairment
644

 
2,198

 
142

 
51

 
117

 
1,332

 
588

 
553

 
5,625

Total
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
162

 
433

 
—

 
—

 
—

 
—

 
—

 
—

 
595

Ending balance: collectively evaluated for impairment
162,136

 
422,499

 
63,612

 
37,094

 
31,271

 
37,083

 
171,604

 
—

 
925,299

Total
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
—

 
$
925,894

 
 
1-4 Family
Real
Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
552

 
$
1,575

 
$
263

 
$
78

 
$
93

 
$
719

 
$
—

 
$
2,117

 
$
5,397

Provision (recovery) for loan losses
(229
)
 
(180
)
 
(100
)
 
(58
)
 
(68
)
 
3,004

 
464

 
(1,368
)
 
1,465

Charge offs
(45
)
 
(214
)
 
—

 
—

 
—

 
(186
)
 
(285
)
 
—

 
(730
)
Recoveries
—

 
6

 
—

 
—

 
3

 
—

 
114

 
—

 
123

Ending balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
241

 
—

 
—

 
—

 
3,252

 
—

 
—

 
3,493

Ending balance: collectively evaluated for impairment
278

 
946

 
163

 
20

 
28

 
285

 
293

 
749

 
2,762

Total
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
121

 
1,350

 
—

 
—

 
11

 
5,132

 
—

 
—

 
6,614

Ending balance: collectively evaluated for impairment
124,900

 
308,849

 
64,316

 
33,527

 
29,882

 
38,494

 
106,505

 
—

 
706,473

Total
$
125,021

 
$
310,199

 
$
64,316

 
$
33,527

 
$
29,893

 
$
43,626

 
$
106,505

 
$
—

 
$
713,087




The asset classification of loans at September 30, 2016, and 2015, are as follows:
 
September 30, 2016
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894


September 30, 2015
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
124,775

 
$
307,876

 
$
35,106

 
$
33,527

 
$
29,052

 
$
29,336

 
$
106,505

 
$
666,177

Watch
212

 
1,419

 
26,703

 
—

 
712

 
1,079

 
—

 
30,125

Special Mention
10

 
—

 
877

 
—

 
—

 
4,014

 
—

 
4,901

Substandard
24

 
904

 
1,630

 
—

 
129

 
9,197

 
—

 
11,884

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
125,021

 
$
310,199

 
$
64,316

 
$
33,527

 
$
29,893

 
$
43,626

 
$
106,505

 
$
713,087



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

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors, the asset’s classification as loss is not yet appropriate.
 
Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.
 
Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income.
 
Past due loans at September 30, 2016 and 2015 are as follows:
 
September 30, 2016
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894


September 30, 2015
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
142

 
$
—

 
$
—

 
$
142

 
$
124,855

 
$
24

 
$
125,021

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
309,295

 
904

 
310,199

Agricultural Real Estate
—

 
—

 
—

 
—

 
64,316

 
—

 
64,316

Consumer
152

 
—

 
13

 
165

 
33,362

 
—

 
33,527

Commercial Operating
—

 
—

 
—

 
—

 
29,893

 
—

 
29,893

Agricultural Operating
—

 
—

 
—

 
—

 
38,494

 
5,132

 
43,626

Premium Finance
702

 
362

 
1,728

 
2,792

 
103,713

 
—

 
106,505

Total
$
996

 
$
362

 
$
1,741

 
$
3,099

 
$
703,928

 
$
6,060

 
$
713,087



When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment.  Often this is associated with a delay or shortfall in payments of 210 days or more for Premium Finance loans and 90 days or more for other loan categories.  As of September 30, 2016, there were no Premium Finance loans greater than 210 days past due.

Impaired loans at September 30, 2016 and 2015 are as follows:

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

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

      Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

      Total
$
78

 
$
78

 
$
10


 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2015
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
121

 
$
121

 
$
—

Commercial and Multi-Family Real Estate
446

 
446

 
—

Commercial Operating
11

 
11

 
—

Total
$
578

 
$
578

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
—

 
$
—

 
$
—

Commercial and Multi-Family Real Estate
904

 
904

 
241

Agricultural Operating
5,132

 
5,282

 
3,252

Total
$
6,036

 
$
6,186

 
$
3,493


Cash interest collected on impaired loans was not material during the years ended September 30, 2016 and 2015.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2016 and 2015.
 
 
Year Ended September 30,
 
2016
 
2015
 
Average
Recorded
Investment
 
Average
Recorded
Investment
1-4 Family Real Estate
$
144

 
$
238

Commercial and Multi-Family Real Estate
1,117

 
2,114

Commercial Operating
6

 
17

Agricultural Operating
2,919

 
3,559

Total
$
4,186

 
$
5,928



For fiscal 2016 and 2015, the Company’s TDRs (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table above.
 
No TDRs were recorded during fiscal 2016 or 2015.  Also, no TDRs which had been modified during the 12-month period prior to default had a payment default during fiscal 2016 or 2015.
 
Virtually all of the Company’s originated loans are to Iowa- and South Dakota-based individuals and organizations.  The Company’s purchased loans totaled $6.4 million at September 30, 2016, which were secured by properties located, as a percentage of total loans, as follows: less than 1% combined in Oregon, North Dakota, North Carolina, and Connecticut.
 
The Company originates and purchases commercial real estate loans.  These loans are considered by management to be of somewhat greater risk of not being collected due to the dependency on income production.  The Company’s commercial real estate loans include $65.4 million of loans secured by hotel properties and $112.6 million of multi-family properties at September 30, 2016.  The Company’s commercial real estate loans include $51.1 million of loans secured by hotel properties and $99.6 million of multi-family properties at September 30, 2015.  The remainder of the commercial real estate portfolio is diversified by industry.  The Company’s policy for requiring collateral and guarantees varies with the creditworthiness of each borrower.
 
Non-accruing loans were $83,000 and $6.1 million at September 30, 2016 and 2015, respectively.  There were $1.0 million and $1.7 million accruing loans delinquent 90 days or more at September 30, 2016 and 2015, respectively.  For the year ended September 30, 2016, gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to approximately $2,000, of which none was included in interest income.
v3.6.0.2
LOAN SERVICING
 12 Months Ended
Sep. 30, 2016
Transfers and Servicing [Abstract]  
LOAN SERVICING
LOAN SERVICING
 
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at year-end were as follows:
 
September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
3,980

 
$
5,055

 
$
5,948

Other
15,452

 
17,156

 
16,576

 
$
19,432

 
$
22,211

 
$
22,524
v3.6.0.2
EARNINGS PER COMMON SHARE
 12 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE
 
Basic EPS is based on the net income divided by the weighted-average number of common shares outstanding during the period.  Allocated Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for EPS calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding.  All ESOP shares were allocated as of September 30, 2016, and September 30, 2015.  Diluted EPS shows the dilutive effect of additional common shares issuable pursuant to stock option agreements.
 
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2016, 2015 and 2014 is presented below.
 
 
2016

 
2015

 
2014

 
(Dollars in Thousands, Except Share and Per Share Data)
Earnings
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713

 
 
 
 
 
 
Basic EPS
 

 
 

 
 

Weighted average common shares outstanding
8,443,956

 
6,730,086

 
6,117,577

Less weighted average nonvested shares
(29,125
)
 
(4,237
)
 
(4,301
)
Weighted average common shares outstanding
8,414,831

 
6,725,849

 
6,113,276

 
 
 
 
 
 
Earnings Per Common Share
 

 
 

 
 

Basic
$
3.95

 
$
2.68

 
$
2.57

 
 
 
 
 
 
Diluted EPS
 

 
 

 
 

Weighted average common shares outstanding for basic earnings per common share
8,414,831

 
6,725,849

 
6,113,276

Add dilutive effect of assumed exercises of stock options, net of tax benefits
66,590

 
68,951

 
85,133

Weighted average common and dilutive potential common shares outstanding
8,481,421

 
6,794,800

 
6,198,409

 
 
 
 
 
 
Earnings Per Common Share
 

 
 

 
 

Diluted
$
3.92

 
$
2.66

 
$
2.53



All stock options were considered in computing diluted EPS for the year ended September 30, 2016. Stock options totaling 28,891 and 29,984 were not considered in computing diluted earnings per common share for the years ended September 30, 2015 and 2014, respectively, because they were anti-dilutive.
v3.6.0.2
SECURITIES
 12 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
 
Securities available for sale were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

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

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2015
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
16,199

 
$
8

 
$
(2,263
)
 
$
13,944

Small business administration securities
54,493

 
1,563

 
—

 
56,056

Non-bank qualified obligations of states and political subdivisions
603,165

 
7,240

 
(1,815
)
 
608,590

Mortgage-backed securities
580,165

 
1,283

 
(4,865
)
 
576,583

Total debt securities
1,254,022

 
10,094

 
(8,943
)
 
1,255,173

Common equities and mutual funds
639

 
283

 
(8
)
 
914

Total available for sale securities
$
1,254,661

 
$
10,377

 
$
(8,951
)
 
$
1,256,087



Securities held to maturity were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
355

 
$
(44
)
 
$
20,937

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

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2015
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,540

 
$
60

 
$
(187
)
 
$
19,413

Non-bank qualified obligations of states and political subdivisions
259,627

 
2,122

 
(419
)
 
261,330

Mortgage-backed securities
66,577

 
—

 
(473
)
 
66,104

Total held to maturity securities
$
345,744

 
$
2,182

 
$
(1,079
)
 
$
346,847



Included in securities available for sale are trust preferred securities as follows:
 
At September 30, 2016
 
 
 
 
 
 
 
 
     
Issuer(1)
Amortized Cost
 
Fair Value
 
Unrealized
Gain (Loss)
 
S&P
Credit Rating
 
Moody's
Credit Rating
 
 (Dollars in Thousands)
Key Corp. Capital I
$
4,987

 
$
4,189

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

 
4,077

 
(904
)
 
BB
 
Baa2
PNC Capital Trust
4,968

 
4,712

 
(256
)
 
BBB-
 
Baa1
Total
$
14,936

 
$
12,978

 
$
(1,958
)
 
 
 
  

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

At September 30, 2015
 
 
 
 
 
 
 
 
     
Issuer(1)
Amortized Cost
 
Fair Value
 
Unrealized
Gain (Loss)
 
S&P
Credit Rating
 
Moody's
Credit Rating
 
 (Dollars in Thousands)
Key Corp. Capital I
$
4,986

 
$
4,189

 
$
(797
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
4,979

 
4,076

 
(903
)
 
BB
 
Baa2
PNC Capital Trust
4,965

 
4,402

 
(563
)
 
BBB-
 
Baa1
Total
$
14,930

 
$
12,667

 
$
(2,263
)
 
 
 
  

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

Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows.  Management also determines whether the Company intends to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity.  To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.
 
Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale, Held to Maturity or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income.  HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2016, and 2015, are as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

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

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

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

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2015
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities


 


 


 


 


 


Small Business Administration securities
—

 
—

 
12,667

 
(2,263
)
 
12,667

 
(2,263
)
Non-bank qualified obligations of states and political subdivisions
97,006

 
(860
)
 
42,583

 
(955
)
 
139,589

 
(1,815
)
Mortgage-backed securities
448,988

 
(4,301
)
 
48,079

 
(564
)
 
497,067

 
(4,865
)
Total debt securities
545,994

 
(5,161
)
 
103,329

 
(3,782
)
 
649,323

 
(8,943
)
Common equities and mutual funds
—

 
—

 
121

 
(8
)
 
121

 
(8
)
Total available for sale securities
$
545,994

 
$
(5,161
)
 
$
103,450

 
$
(3,790
)
 
$
649,444

 
$
(8,951
)


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

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

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

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

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

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2015
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
5,528

 
$
(34
)
 
$
7,964

 
$
(153
)
 
$
13,492

 
$
(187
)
Non-bank qualified obligations of states and political subdivisions
78,663

 
(365
)
 
4,136

 
(54
)
 
82,799

 
(419
)
Mortgage-backed securities
5,509

 
(43
)
 
60,595

 
(430
)
 
66,104

 
(473
)
Total held to maturity securities
$
89,700

 
$
(442
)
 
$
72,695

 
$
(637
)
 
$
162,395

 
$
(1,079
)


As of September 30, 2016 and 2015, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2016 and 2015.
 
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2015
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
1,174

 
1,207

Due after five years through ten years
370,087

 
376,394

Due after ten years
302,596

 
300,989

 
673,857

 
678,590

Mortgage-backed securities
580,165

 
576,583

Common equities and mutual funds
639

 
914

Total available for sale securities
$
1,254,661

 
$
1,256,087


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2015
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
95

 
$
96

Due after one year through five years
8,411

 
8,430

Due after five years through ten years
140,145

 
140,505

Due after ten years
130,516

 
131,712

 
279,167

 
280,743

Mortgage-backed securities
66,577

 
66,104

Total held to maturity securities
$
345,744

 
$
346,847



Activities related to the sale of securities available for sale are summarized below.
 
 
2016
 
2015
 
2014
September 30,
(Dollars in Thousands)
 
 
 
 
 
 
Proceeds from sales
$
285,508

 
$
566,371

 
$
166,804

Gross gains on sales
1,459

 
2,753

 
2,292

Gross losses on sales
1,785

 
4,387

 
2,185
v3.6.0.2
PREMISES, FURNITURE, AND EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2016
Property, Plant and Equipment [Abstract]  
PREMISES, FURNITURE, AND EQUIPMENT, NET
PREMISES, FURNITURE AND EQUIPMENT, NET
 
Year-end premises and equipment were as follows:
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
Land
$
1,578

 
$
1,578

Buildings
10,482

 
10,315

Furniture, fixtures, and equipment
41,756

 
35,571

Capitalized leases
2,259

 
2,259

 
56,075

 
49,723

Less: accumulated depreciation and amortization
(37,449
)
 
(32,330
)
Net book value
$
18,626

 
$
17,393



Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $5.4 million, $4.6 million and $3.5 million for the years ended September 30, 2016, 2015 and 2014, respectively. Amortization expense on capitalized leases for the years ended September 30, 2016 and 2015, was $0.2 million and $0.1 million, respectively, and is included in occupancy and equipment expense. For the year ended September 30, 2014, there was no amortization expense on capitalized leases.
v3.6.0.2
TIME CERTIFICATES OF DEPOSITS
 12 Months Ended
Sep. 30, 2016
Deposits [Abstract]  
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS
 
Time certificates of deposits in denominations of $250,000 or more were approximately $44.5 million and $38.5 million at September 30, 2016, and 2015, respectively.
 
At September 30, 2016, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2017
$
107,116

2018
8,967

2019
4,673

2020
3,364

2021
1,839

Thereafter
33

Total Certificates
$
125,992



Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $250,000 by the DIF under management of the FDIC.
v3.6.0.2
SHORT TERM AND LONG TERM DEBT
 12 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
SHORT TERM AND LONG TERM DEBT
SHORT TERM DEBT AND LONG TERM DEBT

Short Term Debt
September 30,
2016
 
2015
 
 
 
 
Overnight federal funds purchased
$
992,000

 
$
540,000

Short-term FHLB advances
100,000

 
—

Short-term capital lease
79

 
—

Repurchase agreements
3,039

 
4,007

     Total
1,095,118

 
544,007



The Company had $992.0 million of overnight federal funds purchased from the FHLB as of September 30, 2016. The Company had $540.0 million in overnight federal funds purchased from the FHLB at September 30, 2015. At September 30, 2016, the Company’s short-term advances from the FHLB totaled $100 million and carried a fixed rate of 0.46%. The Company had no short-term advances from the FHLB at September 30, 2015.
 
The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in all mortgage collateral and securities collateral.  The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB.  Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement.
 
At year-end 2016 and 2015, the Bank pledged securities with fair values of approximately $824.5 million and $625.2 million, respectively, against specific FHLB advances.  In addition, qualifying mortgage loans of approximately $501.0 million, and $369.6 million were pledged as collateral at September 30, 2016, and 2015, respectively.

As of September 30, 2016, the Company had three capital leases, two equipment leases and one property lease.  At September 30, 2016, the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $79,000.


Securities sold under agreements to repurchase totaled approximately $3.0 million and $4.0 million at September 30, 2016, and 2015, respectively.

An analysis of securities sold under agreements to repurchase follows:

September 30,
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,468

 
$
17,400

Average balance
2,179

 
10,883

Weighted average interest rate for the year
0.60
%
 
0.52
%
Weighted average interest rate at year end
0.61
%
 
0.58
%


The Company pledged securities with fair values of approximately $9.2 million at September 30, 2016, as collateral for securities sold under agreements to repurchase.  There were $20.6 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2015.

Long Term Debt

September 30,
2016
 
2015
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
7,000

 
$
7,000

Trust preferred securities
10,310

 
10,310

Subordinated debentures (net of issuance costs)
73,211

 
—

Long-term capital lease
1,939

 
2,143

     Total
92,460

 
19,453



At September 30, 2016, the Company’s long-term advances from the FHLB totaled $7.0 million had carried a weighted-average rate of 6.98%. The weighted average rate of the Company's long-term advances was 6.98% at September 30, 2015.

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

$
—

$
—

$
—

$
—

2018
—

—

—

61

61

2019
5,000

—

—

64

5,064

2020
2,000

—

—

72

2,072

2021
—

—

—

77

77

Thereafter
—

10,310

73,211

1,665

85,186

Total long-term debt
$
7,000

$
10,310

$
73,211

$
1,939

$
92,460



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

The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities.  Distributions are paid semi-annually.  Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% (4.99% at September 30, 2016, and 4.28% at September 30, 2015), not to exceed 12.5%.  The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031.  At the end of any deferral period, all accumulated and unpaid distributions are required to be paid.  The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date.  The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption.
 
Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock.
 
Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations.

The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million. At September 30, 2016, the Company had $73.2 million in subordinated debentures, net of issuance costs of $1.8 million. Accumulated interest expense on the subordinated debentures was $0.5 million as of September 30, 2016.

As of September 30, 2016, the Company had three capital leases, two equipment leases and one property lease.  At September 30, 2016, the portion of the liability expected to be expensed and amortized beyond 12 months is $1.9 million.  The majority of the $1.9 million is related to the Urbandale, Iowa retail branch location.
v3.6.0.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 12 Months Ended
Sep. 30, 2016
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 
The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1000 hours of employment with the Bank, have worked one year at the Bank and who have attained age 21.  ESOP expense of $1,150,000, $994,000 and $703,000 was recorded for the years ended September 30, 2016, 2015 and 2014, respectively.  Contributions of $1,174,682, $992,038 and $850,406 were made to the ESOP during the years ended September 30, 2016, 2015 and 2014, respectively.
 
Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation.  Benefits generally become 100% vested after seven years of credited service.  Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule.  Forfeitures are reallocated among remaining participating employees in the same proportion as contributions.  Benefits are payable in the form of stock upon termination of employment.  The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated.
 
For the years ended September 30, 2016, 2015 and 2014, 19,381 shares, 23,750 shares and 24,125 shares with a fair value of $60.61, $41.77 and $35.25 per share, respectively, were released. For the years ended September 30, 2016, 2015 and 2014, allocated shares and total ESOP shares reflect 15,502 shares, 10,294 shares and 10,643 shares, respectively, withdrawn from the ESOP by participants who are no longer with the Company or by participants diversifying their holdings.  At September 30, 2016, 2015 and 2014, there were 2,710, 2,974 and 2,529 shares purchased, respectively, for dividend reinvestment.

Year-end ESOP shares are as follows:
 
At September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
262,872

 
256,283

 
239,879

Unearned shares
—

 
—

 
—

Total ESOP shares
262,872

 
256,283

 
239,879

Fair value of unearned shares
$
—

 
$
—

 
$
—



The Company also has a profit sharing plan covering substantially all full-time employees.  Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2016, 2015 and 2014 was $1.26 million, $1.1 million and $0.9 million, respectively.
v3.6.0.2
SHARE BASED COMPENSATION PLANS
 12 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS
 
The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.
 
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2016, 2015 and 2014.
 
Year Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively
$
559

 
$
334

 
$
120



As of September 30, 2016, stock-based compensation expense not yet recognized in income totaled $0.2 million, which is expected to be recognized over a weighted-average remaining period of 1.86 years.
 
At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model.  The exercise price of stock options equals the fair market value of the underlying stock at the date of grant.  Options are issued for 10-year periods with 100% vesting generally occurring either at grant date or over a four-year period.  No options were granted during the years ended September 30, 2016, 2015 and 2014.  The intrinsic value of options exercised during the years ended September 30, 2016, 2015 and 2014 were $1.5 million, $0.9 million and $1.4 million, respectively.
 
Shares are granted each year to executives and senior leadership members under the Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date.  Director shares are issued to the Company’s directors, and these shares vest immediately.  The total fair value of director’s shares granted during the years ended September 30, 2016, 2015 and 2014 was $0.2 million, $0.1 million and $0.1 million, respectively.
 
In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan.  No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2016; however, previously awarded options were exercised under this plan during the year.

The following tables show the activity of options and nonvested (restricted) shares granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2016 and 2015.
 
 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2015
189,088

 
$
25.74

 
3.16

 
$
3,027

Granted
—

 
—

 
—

 
—

Exercised
(63,528
)
 
25.77

 
—

 
1,510

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

 
 
 
 
 
 
 
 
Options exercisable end of year
125,560

 
$
25.73

 
2.68

 
$
4,379


 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2014
235,766

 
$
25.20

 
3.78

 
$
2,507

Granted
—

 
—

 
—

 
—

Exercised
(46,678
)
 
22.98

 
—

 
925

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2015
189,088

 
$
25.74

 
3.16

 
$
3,027

 
 
 
 
 
 
 
 
Options exercisable end of year
189,088

 
$
25.74

 
3.16

 
$
3,027



 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2015
44,002

 
$
40.80

Granted
8,154

 
42.49

Vested
(33,666
)
 
40.93

Forfeited or expired
2,166

 
46.98

Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37


 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2014
4,000

 
$
28.61

Granted
51,217

 
41.10

Vested
(11,215
)
 
37.81

Forfeited or expired
—

 
—

Nonvested shares outstanding, September 30, 2015
44,002

 
$
40.80
v3.6.0.2
INCOME TAXES
 12 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes consists of:
 
Years ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
4,410

 
$
4,217

 
$
3,787

Deferred
(440
)
 
(3,896
)
 
(1,765
)
 
3,970

 
321

 
2,022

 
 
 
 
 
 
State:
 

 
 

 
 

Current
1,422

 
1,048

 
874

Deferred
210

 
(1
)
 
10

 
1,632

 
1,047

 
884

 
 
 
 
 
 
Income tax expense
$
5,602

 
$
1,368

 
$
2,906



Total income tax expense differs from the statutory federal income tax rate as follows:
 
Years ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
 
 
 
 
 
 
Income tax expense at federal tax rate
$
13,588

 
$
6,798

 
$
6,517

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes net of federal benefit
933

 
692

 
575

Nontaxable buildup in cash surrender value
(580
)
 
(711
)
 
(399
)
Incentive stock option expense
(66
)
 
(37
)
 
(187
)
Tax exempt income
(8,257
)
 
(5,230
)
 
(3,594
)
Nondeductible expenses
196

 
188

 
120

Other, net
(212
)
 
(332
)
 
(126
)
Total income tax expense
$
5,602

 
$
1,368

 
$
2,906



The components of the net deferred tax asset (liability) at September 30, 2016 and 2015 are:
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
2,044

 
$
2,286

Deferred compensation
1,345

 
1,040

Stock based compensation
165

 
235

Operational reserve
540

 
453

AMT Credit
5,563

 
4,490

Intangibles
393

 
573

Indirect tax benefits of unrecognized tax positions
216

 
384

Other assets
1,462

 
1,293

 
11,728

 
10,754

 
 
 
 
Deferred tax liabilities:
 

 
 

FHLB stock dividend
(411
)
 
(414
)
Premises and equipment
(1,913
)
 
(1,222
)
Patents
(988
)
 
(967
)
Prepaid expenses
(668
)
 
(633
)
Net unrealized gains on securities available for sale
(12,348
)
 
(521
)
 
(16,328
)
 
(3,757
)
 
 
 
 
Net deferred tax assets (liabilities)
$
(4,600
)
 
$
6,997



As of September 30, 2016 and 2015, the Company had a gross deferred tax asset of $921,000 and $829,000, respectively, for separate company state cumulative net operating loss carryforwards, which was fully reserved for as the Company does not anticipate any state taxable income at the holding company level in future periods.

Finally, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2016, and 2015 with the exception of the state cumulative net operating loss carryforwards discussed above.
 
Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling 6.7 million for the Bank.  Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $2.3 million at September 30, 2016 and 2015.  If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $2.3 million would be recorded as expense.
 
The provisions of ASC 740, Income Taxes, address the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements.  Under ASC 740, the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination, with a tax examination being presumed to occur, including the resolution of any related appeals or litigation.  The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.
 
The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review.  While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve.  With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the consolidated financial statements and the final resolution of a tax issue during the period.
 
The tax years ended September 30, 2013 and later remain subject to examination by the Internal Revenue Service.  For state purposes, the tax years ended September 30, 2013 and later remain open for examination, with few exceptions.
 
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2016, and 2015 follows:
 
September 30,
2016

 
2015

 
(Dollars in Thousands)
Balance at beginning of year
$
974

 
$
983

Additions for tax positions related to the current year
63

 
49

Additions for tax positions related to the prior years
—

 
4

Reductions for tax positions due to settlement with taxing authorities
(372
)
 
(62
)
Reductions for tax positions related to prior years
(140
)
 
—

Balance at end of year
$
525

 
$
974


 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $347,000 as of September 30, 2016.  The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense.  The amount of accrued interest related to unrecognized tax benefits was $110,000 as of September 30, 2016.  The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months.
v3.6.0.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2016
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
In July 2013, the Company’s primary federal regulator, the Federal Reserve and the Bank’s primary federal regulator, the OCC, approved final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards.  The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to financial institution holding companies and their depository institution subsidiaries, including us and the Bank, as compared to the current U.S. general risk-based capital rules. The Basel III Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios.  The Basel III Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. In addition, the Basel III Capital Rules implement certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The Basel III Capital Rules became effective for us and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions.
 
Pursuant to the Basel III Capital Rules, our Company and Bank, respectively, are subject to new regulatory capital adequacy requirements promulgated by the Federal Reserve and the OCC. Failure by our Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Prior to January 1, 2015, our Bank was subject to capital requirements under Basel I and there were no capital requirements for our Company. Under the capital requirements and the regulatory framework for prompt corrective action, our Company and Bank must meet specific capital guidelines that involve quantitative measures of our Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined).  At September 30, 2015, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements.  The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components.  The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.
 
Company (Actual)
 
Bank (Actual)
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(Dollars in Thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 (core) capital (to adjusted total assets)
$
263,555

 
8.35
%
 
$
324,142

 
10.35
%
 
$
10,542

 
4.00
%
 
$
13,178

 
5.00
%
Common equity Tier 1 (to risk-weighted assets)
255,543

 
17.28

 
324,142

 
21.95

 
11,499

 
4.50

 
16,610

 
6.50

Tier 1 (core) capital (to risk-weighted assets)
263,555

 
17.82

 
324,142

 
21.95

 
15,813

 
6.00

 
21,084

 
8.00

Total qualifying capital (to risk-weighted assets)
342,589

 
23.17

 
329,965

 
22.35

 
27,407

 
8.00

 
34,259

 
10.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible capital (to tangible assets)
$
224,426

 
9.36
%
 
$
213,220

 
8.89
%
 
$
8,977

 
4.00
%
 
$
11,221

 
5.00
%
Tier 1 (core) capital (to adjusted total assets)
216,931

 
19.85

 
213,220

 
19.52

 
9,762

 
4.50

 
14,101

 
6.50

Tier 1 (core) capital (to risk-weighted assets)
224,426

 
20.54

 
213,220

 
19.52

 
13,466

 
6.00

 
17,954

 
8.00

Total risk based capital (to risk-weighted assets)
230,820

 
21.12

 
219,614

 
20.11

 
18,466

 
8.00

 
23,082

 
10.00



The following table provides a reconciliation of the amounts included in the table above for the Company.
 
 
Standardized Approach (1)
September 30, 2016
 
(Dollars in Thousands)
 
 
Total equity
$
334,975

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
35,713

LESS: Certain other intangible assets
17,352

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
3,447

LESS: Net unrealized gains (losses) on available-for-sale securities
22,920

Common Equity Tier 1 (1)
255,543

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

LESS: Additional tier 1 capital deductions
2,298

Total Tier 1 capital
263,555

Allowance for loan losses
5,823

Subordinated debentures (net of issuance costs)
73,211

Total qualifying capital
342,589


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

Beginning January 1, 2016, Basel III implemented a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2016, our Company and Bank were expected to comply with the capital conservation buffer requirement, which increased the three risk-based capital ratios by 0.625% each year through 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively.
v3.6.0.2
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
 
In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements.
 
At September 30, 2016 and 2015, unfunded loan commitments approximated $182.9 million and $158.3 million, respectively, excluding undisbursed portions of loans in process.  Unfunded loan commitments at September 30, 2016 and 2015 were principally for variable rate loans.  Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are cancelled upon expiration of the commitment term as outlined in each individual contract.
 
The Company had no commitments to purchase securities at September 30, 2016. At September 30, 2015, the Company had two commitments to purchase securities available for sale totaling $7.9 million and three commitments to purchase securities held to maturity totaling $3.0 million.
 
The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Management monitors several factors when estimating its allowance for uncollectible off-balance-sheet credit exposures, including, but not limited to, economic developments and historical loss rates.
 
Since certain commitments to make loans and to fund lines of credit expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
 
Securities with fair values of approximately $5.8 million at September 30, 2016 and 2015 were pledged as collateral for public funds on deposit.  Securities with fair values of approximately $3.4 million and $14.8 million at September 30, 2016, and 2015, respectively, were pledged as collateral for individual, trust and estate deposits.
 
Legal Proceedings
 
The Company and the Bank were named as defendants, along with other defendants, in four class action litigations commenced in three different federal district courts between October 23, 2015 and November 5, 2015: (1) Fuentes, et al. v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08372-JPO); (2) Huff et al. v. UniRush, LLC et al. (E.D. Cal. Case No. 2:15-cv-02253-KJM-CMK); (3) Peterkin v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08573-PAE); and (4) Jones v. UniRush, LLC et al. (E.D. Pa. Case No. 5:15-cv-05996-JLS). The same defendants, including the Company and the Bank, were also named as defendants in an additional class action litigation commenced in another federal district court on April 13, 2016: (5) Smith v. UniRush LLC, et al. (C.D. Cal. Case No. 2:16-cv-02533-SVW-E). The same defendants, including the Company and the Bank, were named as defendants in a lawsuit filed by an individual plaintiff in a Texas state court on June 24, 2016: (6) Jacobs v. UniRush LLC et al. (Harris County, Texas County Civ. Ct. Cause No. 1079432). The complaints in each of these six actions seek monetary damages for the alleged inability of customers of the prepaid card product RushCard to access the product for up to two weeks starting on or about October 12, 2015. In each case, the plaintiffs alleged claims for breach of contract, fraud, misrepresentation, negligence, unjust enrichment, conversion, and breach of fiduciary duty and violations of various state consumer protection statutes prohibiting unfair or deceptive acts or trade/business practices. In addition, the OCC and the CFPB are examining the events surrounding the allegations with respect to the Company and the other defendants, respectively. The OCC has broad supervisory powers with respect to the Bank and could seek to initiate supervisory action if it believes such action is warranted. A settlement was negotiated with class counsel in actions (1)-(4) under which neither the Company nor the Bank made any payment. Notice of the settlement was given to the approximately 425,000 class members, of which 70 opted out from the class, but not a single objection to the settlement was filed, either by any potential class member or any of the regulatory agencies who received notice of the settlement. At a September 12, 2016 hearing in the lead class action case, action (1), the Court granted final approval of the settlement, certified the Settlement Class and entered final judgment for actions (1)-(4). In the interim, action (5) was settled for a nominal amount, with no payment by the Company or the Bank, and the case was formally resolved with the filing of a dismissal notice on July 15, 2016. At this time, the petition in action (6) specifically alleges that the maximum damages, costs and attorneys’ fees that plaintiff seeks do not exceed $74,000.

The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“INB”) that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of our position.  An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

    







The Bank commenced action against C&B Farms, LLC, Dakota River Farms, LLC, Dakota Grain Farms, LLC, Heather Swenson and Tracy Clement in early July, 2015, in the Third Judicial Circuit Court of the State of South Dakota, seeking to collect upon certain delinquent loans made in connection with the 2014 farming operations of the three identified limited liability companies and the personal guaranties of Swenson and Clement. The three companies and Clement answered the Complaint and asserted a counterclaim against the Bank and a third-party claim against the Bank’s loan officer, alleging fraud and misrepresentation, as well as promissory estoppel.   On January 7, 2016, the Bank obtained a judgment for $6.1 million, the full amount due and owing on the delinquent loans, together with attorneys’ fees, costs and post-judgment interest.  On February 25, 2016, the Court entered an order and judgment in favor of the Bank granting the Bank’s renewed motion for summary judgment as to counterclaims and third party claim. Tracy Clement, the primary guarantor of the C&B Farms, Dakota Grain Farms, and Dakota River Farms indebtedness has filed a Chapter 11 bankruptcy proceeding in Minnesota. The Bank is an unsecured creditor in the bankruptcy proceeding. The Bank still has the right to collect from the three limited liability company debtors (C&B, Dakota Grain, and Dakota River). However, the Bank believes each entity is now insolvent and the collateral recovered and liquidated to the extent possible. The Bank has also settled with the other personal guarantor, Heather Swenson. The Bank commenced action against Interstate Commodities, Inc., on February 1, 2016, in the United States District Court for the District of South Dakota, Central Division. This matter arises out of the Bank’s loans to C&B Farms, which were guaranteed by Tracy Clement. The case alleges that Interstate Commodities has breached the terms of a subordination agreement entered into between Interstate Commodities and the Bank relating to the 2015 crops of C&B Farms, LLC. In March, 2015, the Bank sent a letter to C&B Farms and Interstate Commodities agreeing that the Bank would subordinate its first position lien in the farm products of C&B Farms once the Bank’s 2015 input advances in an agreed upon sum had been paid in full. Interstate Commodities entered into various agreements with C&B Farms in which they agreed to purchase grain at a future date and provided purchase price advance financing to C&B Farms. Interstate Commodities also partially performed under the subordination agreement by paying or allowing certain sums to flow back to the Bank to pay on the agreed upon inputs. Interstate Commodities terminated the payments to the Bank before allowing full repayment of the 2015 inputs financed by the Bank before the subordination agreement was reached. This large, non-performing agricultural relationship was partially charged off during fiscal year 2016 and has no remaining loan balance.

The Bank was served on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by former prepaid program manager of the Bank, which was terminated by the Bank earlier this year. Card Limited alleges that after all of the programs have been wound down, there are two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $1,579,398. The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

Other than the matters set forth above, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party other than ordinary litigation routine to their respective businesses.
v3.6.0.2
LEASE COMMITMENTS
 12 Months Ended
Sep. 30, 2016
Leases [Abstract]  
LEASE COMMITMENTS
LEASE COMMITMENTS
 
The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2036, and require annual rentals ranging from $14,000 to $750,000 plus the payment of the property taxes, normal maintenance, and insurance on certain property. The Company also entered into capital lease agreements during fiscal year ended September 30, 2015, for building and equipment expiring at various times through 2035. Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2016, and included in non-interest expense.
 
The following table shows the total minimum rental commitment for our operating and capital leases as of September 30, 2016.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2017
$
2,175

 
$
201

2018
2,092

 
179

2019
2,103

 
179

2020
2,100

 
182

2021
1,949

 
182

Thereafter
19,396

 
2,422

Total Leases Commitments
$
29,815

 
$
3,345

 
 
 
 
Amounts representing interest
 

 
$
1,327

Present value of net minimum lease payments
 

 
2,018
v3.6.0.2
SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

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

In addition, certain management accounting methodologies, including the treatment of intersegment assets and liabilities, and related allocations, were refined. Prior periods have been reclassified to conform to the current period presentation for all segment reporting, are appropriately reported below.
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2016
 
 
 
 
 
 
 
Interest income
$
9,711

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income (expense)
9,530

 
36,990

 
30,785

 
77,305

Provision (recovery) for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
74,168

 
21,516

 
38,964

 
134,648

Income (loss) before income tax expense (benefit)
29,652

 
16,120

 
(6,950
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
41,357

 
929,243

 
3,035,819

 
4,006,419

Total goodwill
—

 
—

 
36,928

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082


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

 
$
31,394

 
$
22,952

 
$
61,607

Interest expense
169

 
1,377

 
841

 
2,387

Net interest income (expense)
7,092

 
30,017

 
22,111

 
59,220

Provision (recovery) for loan losses
—

 
689

 
776

 
1,465

Non-interest income
54,417

 
3,358

 
399

 
58,174

Non-interest expense
47,458

 
17,900

 
31,148

 
96,506

Income (loss) before income tax expense (benefit)
14,051

 
14,786

 
(9,414
)
 
19,423

 
 
 
 
 
 
 
 
Total assets
44,139

 
706,172

 
1,779,394

 
2,529,705

Total goodwill
—

 
—

 
36,928

 
36,928

Total deposits
1,424,304

 
233,235

 
(5
)
 
1,657,534

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2014
 
 
 
 
 
 
 
Interest income
$
5,973

 
$
21,549

 
$
21,138

 
$
48,660

Interest expense
125

 
1,396

 
877

 
2,398

Net interest income (expense)
5,848

 
20,153

 
20,261

 
46,262

Provision (recovery) for loan losses
—

 
1,150

 
—

 
1,150

Non-interest income
48,524

 
1,986

 
1,228

 
51,738

Non-interest expense
42,536

 
12,680

 
23,015

 
78,231

Income (loss) before income tax expense (benefit)
11,836

 
8,309

 
(1,526
)
 
18,619

 
 
 
 
 
 
 
 
Total assets
38,451

 
493,538

 
1,522,042

 
2,054,031

Total deposits
1,099,548

 
266,993

 
—

 
1,366,541
v3.6.0.2
PARENT COMPANY FINANCIAL STATEMENTS
 12 Months Ended
Sep. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
PARENT COMPANY FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
 
Presented below are condensed financial statements for the parent company, Meta Financial.
 
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
15,716

 
$
14,280

Investment in subsidiaries
403,574

 
267,623

Other assets
413

 
408

Total assets
$
419,703

 
$
282,311

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
83,521

 
$
10,310

Other liabilities
1,207

 
666

Total liabilities
$
84,728

 
$
10,976

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
85

 
$
82

Additional paid-in capital
184,780

 
170,749

Retained earnings
127,190

 
98,359

Accumulated other comprehensive income (loss)
22,920

 
2,455

Treasury stock, at cost
—

 
(310
)
Total stockholders' equity
$
334,975

 
$
271,335

Total liabilities and stockholders' equity
$
419,703

 
$
282,311



CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Interest expense
$
1,022

 
$
418

 
$
348

Other expense
382

 
269

 
770

Total expense
1,404

 
687

 
1,118

 
 
 
 
 
 
Gain (loss) before income taxes and equity in undistributed net income of subsidiaries
(1,404
)
 
(687
)
 
(1,118
)
 
 
 
 
 
 
Income tax (benefit)
(519
)
 
(324
)
 
(422
)
 
 
 
 
 
 
Gain (loss) before equity in undistributed net income of subsidiaries
(885
)
 
(363
)
 
(696
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
34,105

 
18,418

 
16,409

 
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713


 
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713

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

 
 

 
 

Depreciation, amortization and accretion, net
(22
)
 
—

 
(310
)
Equity in undistributed net income of subsidiaries
(34,105
)
 
(18,418
)
 
(16,409
)
Change in other assets
(5
)
 
(15
)
 
246

Change in other liabilities
541

 
378

 
(332
)
Net cash provided by (used in) operating activities
(371
)
 
—

 
(1,092
)
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 

 
 

 
 

Capital contributions to subsidiaries
(81,000
)
 
(67,600
)
 
—

Net cash used in investing activities
(81,000
)
 
(67,600
)
 
—

 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

 
 

Cash dividends paid
(4,389
)
 
(3,493
)
 
(3,184
)
Stock compensation
427

 
253

 
4

Proceeds from issuance of common stock
11,500

 
75,471

 
(51
)
Proceeds from exercise of stock options
2,036

 
210

 
2,376

Proceeds from long term debt
75,000

 
—

 
—

Payment of debt issuance costs
(1,767
)
 
—

 
—

Other, net
—

 
—

 
—

Net cash provided by (used in) financing activities
82,807

 
72,441

 
(855
)
 
 
 
 
 
 
Net change in cash and cash equivalents
$
1,436

 
$
4,841

 
$
(1,947
)
 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 

 
 

 
 

Beginning of year
$
14,280

 
$
9,439

 
$
11,386

End of year
$
15,716

 
$
14,280

 
$
9,439



The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company.  For further discussion, see Note 13 herein.
v3.6.0.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands)
Fiscal Year 2016
 
 
 
 
 
 
 
Interest income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision (recovery) for loan losses
786

 
1,173

 
2,098

 
548

Net Income (loss)
4,058

 
14,283

 
8,873

 
6,006

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.49

 
$
1.69

 
$
1.05

 
$
0.71

Diluted
0.49

 
1.68

 
1.04

 
0.70

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2015
 

 
 

 
 

 
 

Interest income
$
14,232

 
$
15,758

 
$
15,254

 
$
16,363

Interest expense
661

 
473

 
593

 
660

Net interest income
13,571

 
15,285

 
14,661

 
15,703

Provision (recovery) for loan losses
48

 
593

 
700

 
124

Net Income (loss)
3,595

 
5,181

 
4,640

 
4,639

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.58

 
$
0.79

 
$
0.67

 
$
0.64

Diluted
0.58

 
0.78

 
0.66

 
0.64

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2014
 

 
 

 
 

 
 

Interest income
$
11,162

 
$
12,063

 
$
12,566

 
$
12,869

Interest expense
649

 
544

 
638

 
567

Net interest income
10,513

 
11,519

 
11,928

 
12,302

Provision (recovery) for loan losses
—

 
300

 
300

 
550

Net Income (loss)
4,002

 
4,144

 
4,204

 
3,363

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.66

 
$
0.68

 
$
0.69

 
$
0.54

Diluted
0.65

 
0.67

 
0.68

 
0.53

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13
v3.6.0.2
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS
 
Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement.  It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.
 
The fair value hierarchy is as follows:
 
Level 1 Inputs – Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.
 
Level 3 Inputs – Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available.  These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
 
There were no transfers between levels of the fair value hierarchy for the years ended September 30, 2016 and 2015.
 
Securities Available for Sale and Held to Maturity.  Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  The Company’s Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds, corporate debt securities and trust preferred securities.  The Company had no Level 3 securities at September 30, 2016, and 2015.
 
The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model‑based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology and the third‑party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third-party provider include but are not limited to pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third-party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2016 and 2015.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
 
Fair Value At September 30, 2016
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

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

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—


 
Fair Value At September 30, 2015
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
13,944

 
$
—

 
$
13,944

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
56,056

 
—

 
56,056

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,413

 
—

 
19,413

 
—

Non-bank qualified obligations of states and political subdivisions
608,590

 
—

 
608,590

 
—

 
261,330

 
—

 
261,330

 
—

Mortgage-backed securities
576,583

 
—

 
576,583

 
—

 
66,104

 
—

 
66,104

 
—

Total debt securities
1,255,173

 
—

 
1,255,173

 
—

 
346,847

 
—

 
346,847

 
—

Common equities and mutual funds
914

 
914

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,256,087

 
$
914

 
$
1,255,173

 
$
—

 
$
346,847

 
$
—

 
$
346,847

 
$
—



Foreclosed Real Estate and Repossessed Assets.  Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis.  The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets.
 
Loans.  The Company does not record loans at fair value on a recurring basis.  However, if a loan is considered impaired, an allowance for loan losses is established.  Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables.
 
The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of September 30, 2016 and 2015.
 
 
Fair Value at September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
68

 
$
—

 
$
—

 
$
68

Total Impaired Loans
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
—

 
—

 
76

Total
$
144

 
$
—

 
$
—

 
$
144


 
Fair Value At September 30, 2015
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
—

 
$
—

 
$
—

 
$
—

Commercial and multi-family real estate loans
663

 
—

 
—

 
663

Agricultural operating loans
1,880

 
—

 
—

 
1,880

Total
2,543

 
—

 
—

 
2,543

Foreclosed Assets, net
—

 
—

 
—

 
—

Total
$
2,543

 
$
—

 
$
—

 
$
2,543




 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2016
 
Fair Value at
September 30, 2015
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans, net
$
68

 
$
2,543

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
76

 
—

 
Market approach
 
Appraised values (1)

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

The following table discloses the Company’s estimated fair value amounts of its financial instruments.  It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2016 and 2015, as more fully described below.  The operations of the Company are managed from a going concern basis and not a liquidation basis.  As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations.  Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value.  Neither of these components have been given consideration in the presentation of fair values below.

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2016 and 2015.

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

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

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

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital leases
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred securities
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—

 
September 30, 2015
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,658

 
$
27,658

 
$
27,658

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,256,087

 
1,256,087

 
914

 
1,255,173

 
—

Securities held to maturity
345,743

 
346,847

 
—

 
346,847

 
—

Total securities
1,601,830

 
1,602,934

 
914

 
1,602,020

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
125,021

 
121,385

 
—

 
—

 
121,385

Commercial and multi-family real estate loans
310,199

 
314,372

 
—

 
—

 
314,372

Agricultural real estate loans
64,316

 
66,682

 
—

 
—

 
66,682

Consumer loans
33,527

 
33,504

 
—

 
—

 
33,504

Commercial operating loans
29,893

 
23,245

 
—

 
—

 
23,245

Agricultural operating loans
43,626

 
40,003

 
—

 
—

 
40,003

Premium finance loans
106,505

 
108,583

 
—

 
—

 
108,583

Total loans receivable
713,087

 
707,774

 
—

 
—

 
707,774

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
24,410

 
24,410

 
—

 
24,410

 
—

Accrued interest receivable
13,352

 
13,352

 
13,352

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
1,449,101

 
1,369,672

 
1,369,672

 
—

 
—

Interest bearing demand deposits, savings, and money markets
117,262

 
115,204

 
115,204

 
—

 
—

Certificates of deposit
91,171

 
91,304

 
—

 
91,304

 
—

Total deposits
1,657,534

 
1,576,180

 
1,484,876

 
91,304

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
7,000

 
8,630

 
—

 
8,630

 
—

Federal funds purchased
540,000

 
540,000

 
540,000

 
—

 
—

Securities sold under agreements to repurchase
4,007

 
4,007

 
—

 
4,007

 
—

Trust preferred securities
10,310

 
10,416

 
—

 
10,416

 
—

Accrued interest payable
272

 
272

 
272

 
—

 
—



The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2016 and 2015.
 
CASH AND CASH EQUIVALENTS
 
The carrying amount of cash and short-term investments is assumed to approximate the fair value.
 




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

LOANS RECEIVABLE, NET
 
The fair value of loans is estimated using a historical or replacement cost basis concept (i.e., an entrance price concept).  The fair value of loans was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers and for similar remaining maturities.  When using the discounting method to determine fair value, loans were grouped by homogeneous loans with similar terms and conditions and discounted at a target rate at which similar loans would be made to borrowers at September 30, 2016 and 2015.  In addition, when computing the estimated fair value for all loans, allowances for loan losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component.
 
FHLB STOCK
 
The fair value of such stock is assumed to approximate book value since the Company is generally able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
 
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
 
The carrying values of non-interest-bearing checking deposits, interest-bearing checking deposits, savings and money markets is assumed to approximate fair value, since such deposits are immediately withdrawable without penalty.  The fair value of time certificates of deposit was estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities.
 
In accordance with ASC 825, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under ASC 825.
 
ADVANCES FROM FHLB
 
The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.
 
FEDERAL FUNDS PURCHASED
 
The carrying amount of federal funds purchased is assumed to approximate the fair value.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES
 
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
 
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 



LIMITATIONS
 
It must be noted that fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
v3.6.0.2
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
 
The Company recorded a total of $36.9 million of goodwill during the fiscal year ended September 30, 2016. The recorded goodwill was due to two separate business combinations during fiscal 2015 – $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage, on September 8, 2015.  The goodwill associated with these transactions are deductible for tax purposes.
 
As part of the each business combination, the Company also recognized the following amortizable intangible assets:
 
AFS/IBEX:
Intangible
Amount Upon Acquisition
 
Accumulated Amortization
 
Balance at September 30, 2016
 
Book Amortization
Period (Years)
 
Method
Trademark
$
540

 
$
(66
)
 
$
474

 
15
 
Straight Line
Non-Compete
260

 
(159
)
 
101

 
3
 
Straight Line
Customer Relationships
7,240

 
(2,296
)
 
4,944

 
30
 
Accelerated
Other
173

 
(92
)
 
81

 
Varied
 
Straight Line
Total
$
8,213

 
$
(2,613
)
 
$
5,600

 
 
 
 

Refund Advantage: 
Intangible
Amount Upon Acquisition
 
Accumulated Amortization
 
Balance at September 30, 2016
 
Book Amortization
Period (Years)
 
Method
Trademark
$
4,950

 
$
(275
)
 
$
4,675

 
15
 
Accelerated
Non-Compete
40

 
(14
)
 
26

 
3
 
Straight Line
Customer Relationships
18,800

 
(3,154
)
 
15,646

 
12 to 20
 
Accelerated
Other
329

 
(73
)
 
256

 
Varied
 
Straight Line
Total
$
24,119

 
$
(3,516
)
 
$
20,603

 
 
 
 


Other:
Intangible
Amount Upon Acquisition
 
Accumulated Amortization
 
Balance at September 30, 2016
 
Book Amortization
Period (Years)
 
Method
Other
$
3,054

 
$
(336
)
 
$
2,718

 
Varied
 
Straight Line
Total
$
3,054

 
$
(336
)
 
$
2,718

 
 
 
 
The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2016 and 2015 are as follows:
 
 
September 30,
 
2016
 
2015
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
36,928

 
$
—

Acquisitions during the period
—

 
36,928

Write-offs during the period
—

 
—

Ending balance
$
36,928

 
$
36,928


The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2016. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded quantitative analysis was not required and no impairment existed.
 
 
Trademark
 
Non-Compete
 
Customer
Relationships
 
All Others
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
172

 
172

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

 
—

 
—

 
—

 
—

Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921


 
Trademark
 
Non-Compete
 
Customer
Relationships
 
All Others
 
Total
Intangibles
 
Balance as of September 30, 2014
$
—

 
$
—

 
$
—

 
$
2,588

 
$
2,588

Acquisitions during the period
5,490

 
300

 
26,040

 
855

 
32,685

Amortization during the period
(51
)
 
(73
)
 
(1,229
)
 
(282
)
 
(1,635
)
Write-offs during the period
—

 
—

 
—

 
(61
)
 
(61
)
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577



The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.
    
The anticipated future amortization of intangibles is as follows:
 
September 30,
 
(Dollars in Thousands)
2017
$
4,128

2018
3,529

2019
3,013

2020
2,610

2021
2,271

Thereafter
13,370

Total anticipated intangible amortization
$
28,921
v3.6.0.2
SUBSEQUENT EVENTS
 12 Months Ended
Sep. 30, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

MetaBank entered into an agreement with H&R Block® on October 26, 2016 to provide funding for up to $1.45 billion and retain up to $750 million of interest-free refund advance loans for H&R Block® tax preparation customers throughout the 2017 tax season. H&R Block® is the world's largest tax services provider with approximately 12,000 company-owned and franchise retail locations.

On November 1, 2016, MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS from privately-held Drake Enterprises, Ltd. (“Drake”). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 EROs nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services. The EPS management team and other employees have been hired by MetaBank and EPS operations will continue to be based out of Easton, PA. The purchase price for the acquisition of approximately $42.5 million included the payment of approximately $21.3 million in cash and the issuance of 369,179 shares of Meta Financial common stock to Drake. The cash portion of the purchase price was funded from the proceeds of the previously announced subordinated debt issuance.

On November 9, 2016, Meta Financial and MetaBank entered into an agreement with Specialty Consumer Services LP, (‘SCS”) to acquire substantially all of the assets, and assume specified liabilities, of SCS. In exchange, Meta Financial has agreed to pay SCS consideration of approximately $15 million, subject to adjustment. If certain performance targets are met after the closing of the transaction, SCS will be eligible to receive earnout payments consisting of up to an aggregate of $17.5 million in cash and up to an aggregate of 264,431 shares of Meta Financial’s common stock. The transaction is expected to close in the fourth calendar quarter of 2016.

On November 28, 2016, MetaBank and Jackson Hewitt finalized an agreement whereby MetaBank will be originating Express Refund Advances to Jackson Hewitt customers.
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Sep. 30, 2016
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION
 
The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency and First Services Financial Limited, which offered noninsured investment products and was dissolved on December 3, 2013.  The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities.  The Trust is not included in the consolidated financial statements of the Company.  All significant intercompany balances and transactions have been eliminated.
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
 
The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services.  Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans.  The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis for the MPS division.  The Company operates in the banking industry, which accounts for the majority of its revenues and assets.  The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
 
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments.  These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
 
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions.  The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and FHLB advances with terms less than 90 days.  The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits.  The total of those reserve balances was $0 and $4.1 million at September 30, 2016, and 2015, respectively.  The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions.  At September 30, 2016, the Company had no interest-bearing deposits held at the FHLB and $512.9 million in interest-bearing deposits held at the FRB.  At September 30, 2016, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
SECURITIES
 
GAAP require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities.
 
The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.
 
The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
 
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2016, 2015 and 2014, there was no other-than-temporary impairment recorded.
LOANS RECEIVABLE
LOANS RECEIVABLE
 
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans.
 
Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued.  Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status.
 
Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method.
 



As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.
 
The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing.  The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.
 
Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income.  The loan will remain on a non-accrual status until six months of good payment history.
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
 
The Company, from time to time, sells loan participations, generally without recourse.  Sold loans are not included in the consolidated financial statements.  The Bank generally retains the right to service the sold loans for a fee.  At September 30, 2016 and 2015, the Bank was servicing loans for others with aggregate unpaid principal balances of $19.4 million and $22.2 million, respectively.
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES
 
The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.  The allowance consists of specific, general and unallocated components.
 
The specific component relates to impaired loans.  Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories.  Non-accrual loans and all TDRs are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.
 


The general reserve covers loans not considered impaired and is comprised of both quantitative and qualitative analysis.  A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans.  The three main assumptions for the quantitative components for 2016 and 2015 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

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

•
In prior periods, management utilized a five-year historical loss experience methodology. A seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors.

•
The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off.  The LEP is only applied to the non-classified loan general reserve.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment.
 
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 
Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis.  Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses.  Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs.
INCOME TAXES
INCOME TAXES
 
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination.  For tax positions not meeting the more likely than not test, no tax benefit is recorded.  The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
PREMISES, FURNITURE, AND EQUIPMENT
PREMISES, FURNITURE AND EQUIPMENT
 
Land is carried at cost.  Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization.  Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization.  We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS
 
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1)the assets have been legally isolated from the Company, (2)the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3)the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
BANK-OWNED LIFE INSURANCE
BANK-OWNED LIFE INSURANCE
 
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
 
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2016 and 2015, all shares in the ESOP were allocated.
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
 
The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements.
INTANGIBLE ASSETS
INTANGIBLE ASSETS
 
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment.
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 
The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security.  Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction.  Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability.  The securities underlying the agreements remain in the asset accounts of the Company.
REVENUE RECOGNITION
REVENUE RECOGNITION
 
Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment.  Income from service and other customer charges is recognized as earned.  Revenue within the MPS division is recognized as services are performed and service charges are earned in accordance with the terms of the various programs.
EARNINGS PER COMMON SHARE ("EPS")
EARNINGS PER COMMON SHARE (“EPS”)
 
Basic EPS is based on the net income divided by the weighted-average number of common shares outstanding during the period.  Allocated ESOP shares are considered outstanding for earnings per common share calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding.  Diluted EPS shows the dilutive effect of additional potential common shares issuable under stock option plans.
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)
 
Comprehensive income (loss) consists of net income and other comprehensive income or loss.  Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
STOCK COMPENSATION
STOCK COMPENSATION
 
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date.  The Company utilizes projections for forfeitures on its stock-based compensation.
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS

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

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and ensuring our systems are capturing data applicable to the standard.

ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

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

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company is currently taking inventory of all leases and analyzing what their treatment will be under the new guidance.

ASU No 2015-16 – Business Combinations (Topic 805):  Simplifying the Accounting for Measurement-Period Adjustments
 
This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined.  Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date.  This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company has adopted the standard and it had an immaterial impact.
 





ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)
 
This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing our different prepaid card programs and income streams to ascertain how breakage will be recognized under the standard.
 
ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
 
This ASU eliminates the concept of extraordinary items from U.S. GAAP.  The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence.  This update is in effect for annual and interim periods beginning after December 15, 2015, and has had an immaterial impact on the Company’s consolidated financial statements.

ASU No. 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis
 
This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities.  This update is in effect for annual and interim periods beginning after December 15, 2015, and has had an immaterial impact to the Company's consolidated financial statements.

ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

This ASU provides guidance on balance sheet presentation requirements for debt issuance costs and debt discount and premium. The objective of this ASU is to simplify presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements.
        


ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.
v3.6.0.2
ACQUISITIONS (Tables)
 12 Months Ended
Sep. 30, 2016
AFS/IBEX Financial Services Inc [Member]  
Business Acquisition [Line Items]  
Approximate Fair Value of Assets Acquired and Liabilities Assumed
The following table represents the approximate fair value of assets acquired and liabilities assumed of AFS/IBEX on the consolidated balance sheet as of December 2, 2014:
 
 
As of December 2, 2014
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
99,255

Total consideration paid
99,255

 
 

Fair value of assets acquired
 

Cash and cash equivalents
6,947

Loans receivable, net
74,120

Prepaid assets
156

Furniture and equipment, net
449

Intangible assets
8,213

Other assets
6

Total assets
89,891

Fair value of liabilities assumed
 

Accrued expenses and other liabilities
2,214

Total liabilities assumed
2,214

Fair value of net assets acquired
87,677

Goodwill resulting from acquisition
$
11,578
Refund Advantage [Member]  
Business Acquisition [Line Items]  
Approximate Fair Value of Assets Acquired and Liabilities Assumed
The following table represents the approximate fair value of assets acquired and liabilities assumed of Refund Advantage on the consolidated balance sheet as of September 8, 2015:

 
As of September 8, 2015
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
26,060

Stock issued
$
24,303

Total consideration paid
50,363

 
 

Fair value of assets acquired
 

Cash and cash equivalents
2,821

Prepaid assets
23

Furniture and equipment, net
55

Intangible assets
24,119

Other assets
457

Total assets
27,475

Fair value of liabilities assumed
 

Accrued expenses and other liabilities
2,463

Total liabilities assumed
2,463

Fair value of net assets acquired
25,012

Goodwill resulting from acquisition
$
25,351
v3.6.0.2
LOANS RECEIVABLE, NET (Tables)
 12 Months Ended
Sep. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Year-end loans receivable were as follows:
 
 
September 30, 2016
 
September 30, 2015
 
(Dollars in Thousands)
1-4 Family Real Estate
$
162,298

 
$
125,021

Commercial and Multi-Family Real Estate
422,932

 
310,199

Agricultural Real Estate
63,612

 
64,316

Consumer
37,094

 
33,527

Commercial Operating
31,271

 
29,893

Agricultural Operating
37,083

 
43,626

Premium Finance
171,604

 
106,505

Total Loans Receivable
925,894

 
713,087

 
 
 
 
Less:
 

 
 

Allowance for Loan Losses
(5,635
)
 
(6,255
)
Net Deferred Loan Origination Fees
(789
)
 
(577
)
Total Loans Receivable, Net
$
919,470

 
$
706,255
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Annual activity in the allowance for loan losses was as follows:
 
Year ended September 30,
2016

 
2015

 
2014

 
(Dollars in Thousands)
Beginning balance
$
6,255

 
$
5,397

 
$
3,930

Provision for loan losses
4,605

 
1,465

 
1,150

Recoveries
147

 
123

 
367

Charge offs
(5,372
)
 
(730
)
 
(50
)
Ending balance
$
5,635

 
$
6,255

 
$
5,397


Allowance for Loan Losses and Recorded Investment in loans at September 30, 2016 and 2015 are as follows:
 
 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan losses
408

 
1,369

 
(21
)
 
748

 
338

 
1,045

 
914

 
(196
)
 
4,605

Charge offs
(32
)
 
(385
)
 
—

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

 
(5,372
)
Recoveries
—

 
27

 
—

 
11

 
—

 
2

 
107

 
—

 
147

Ending balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
10

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10

Ending balance: collectively evaluated for impairment
644

 
2,198

 
142

 
51

 
117

 
1,332

 
588

 
553

 
5,625

Total
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
162

 
433

 
—

 
—

 
—

 
—

 
—

 
—

 
595

Ending balance: collectively evaluated for impairment
162,136

 
422,499

 
63,612

 
37,094

 
31,271

 
37,083

 
171,604

 
—

 
925,299

Total
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
—

 
$
925,894

 
 
1-4 Family
Real
Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Year Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
552

 
$
1,575

 
$
263

 
$
78

 
$
93

 
$
719

 
$
—

 
$
2,117

 
$
5,397

Provision (recovery) for loan losses
(229
)
 
(180
)
 
(100
)
 
(58
)
 
(68
)
 
3,004

 
464

 
(1,368
)
 
1,465

Charge offs
(45
)
 
(214
)
 
—

 
—

 
—

 
(186
)
 
(285
)
 
—

 
(730
)
Recoveries
—

 
6

 
—

 
—

 
3

 
—

 
114

 
—

 
123

Ending balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
241

 
—

 
—

 
—

 
3,252

 
—

 
—

 
3,493

Ending balance: collectively evaluated for impairment
278

 
946

 
163

 
20

 
28

 
285

 
293

 
749

 
2,762

Total
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually evaluated for impairment
121

 
1,350

 
—

 
—

 
11

 
5,132

 
—

 
—

 
6,614

Ending balance: collectively evaluated for impairment
124,900

 
308,849

 
64,316

 
33,527

 
29,882

 
38,494

 
106,505

 
—

 
706,473

Total
$
125,021

 
$
310,199

 
$
64,316

 
$
33,527

 
$
29,893

 
$
43,626

 
$
106,505

 
$
—

 
$
713,087
Asset Classification of Loans
The asset classification of loans at September 30, 2016, and 2015, are as follows:
 
September 30, 2016
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894


September 30, 2015
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
124,775

 
$
307,876

 
$
35,106

 
$
33,527

 
$
29,052

 
$
29,336

 
$
106,505

 
$
666,177

Watch
212

 
1,419

 
26,703

 
—

 
712

 
1,079

 
—

 
30,125

Special Mention
10

 
—

 
877

 
—

 
—

 
4,014

 
—

 
4,901

Substandard
24

 
904

 
1,630

 
—

 
129

 
9,197

 
—

 
11,884

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
125,021

 
$
310,199

 
$
64,316

 
$
33,527

 
$
29,893

 
$
43,626

 
$
106,505

 
$
713,087
Past Due Loans
Past due loans at September 30, 2016 and 2015 are as follows:
 
September 30, 2016
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894


September 30, 2015
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
142

 
$
—

 
$
—

 
$
142

 
$
124,855

 
$
24

 
$
125,021

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
309,295

 
904

 
310,199

Agricultural Real Estate
—

 
—

 
—

 
—

 
64,316

 
—

 
64,316

Consumer
152

 
—

 
13

 
165

 
33,362

 
—

 
33,527

Commercial Operating
—

 
—

 
—

 
—

 
29,893

 
—

 
29,893

Agricultural Operating
—

 
—

 
—

 
—

 
38,494

 
5,132

 
43,626

Premium Finance
702

 
362

 
1,728

 
2,792

 
103,713

 
—

 
106,505

Total
$
996

 
$
362

 
$
1,741

 
$
3,099

 
$
703,928

 
$
6,060

 
$
713,087
Impaired Loans
Impaired loans at September 30, 2016 and 2015 are as follows:

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

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

      Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

      Total
$
78

 
$
78

 
$
10


 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2015
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
121

 
$
121

 
$
—

Commercial and Multi-Family Real Estate
446

 
446

 
—

Commercial Operating
11

 
11

 
—

Total
$
578

 
$
578

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
—

 
$
—

 
$
—

Commercial and Multi-Family Real Estate
904

 
904

 
241

Agricultural Operating
5,132

 
5,282

 
3,252

Total
$
6,036

 
$
6,186

 
$
3,493


Cash interest collected on impaired loans was not material during the years ended September 30, 2016 and 2015.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2016 and 2015.
 
 
Year Ended September 30,
 
2016
 
2015
 
Average
Recorded
Investment
 
Average
Recorded
Investment
1-4 Family Real Estate
$
144

 
$
238

Commercial and Multi-Family Real Estate
1,117

 
2,114

Commercial Operating
6

 
17

Agricultural Operating
2,919

 
3,559

Total
$
4,186

 
$
5,928
v3.6.0.2
LOAN SERVICING (Tables)
 12 Months Ended
Sep. 30, 2016
Transfers and Servicing [Abstract]  
Unpaid Principal Balances of Loans Serviced for Others
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at year-end were as follows:
 
September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
3,980

 
$
5,055

 
$
5,948

Other
15,452

 
17,156

 
16,576

 
$
19,432

 
$
22,211

 
$
22,524
v3.6.0.2
EARNINGS PER COMMON SHARE (Tables)
 12 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2016, 2015 and 2014 is presented below.
 
 
2016

 
2015

 
2014

 
(Dollars in Thousands, Except Share and Per Share Data)
Earnings
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713

 
 
 
 
 
 
Basic EPS
 

 
 

 
 

Weighted average common shares outstanding
8,443,956

 
6,730,086

 
6,117,577

Less weighted average nonvested shares
(29,125
)
 
(4,237
)
 
(4,301
)
Weighted average common shares outstanding
8,414,831

 
6,725,849

 
6,113,276

 
 
 
 
 
 
Earnings Per Common Share
 

 
 

 
 

Basic
$
3.95

 
$
2.68

 
$
2.57

 
 
 
 
 
 
Diluted EPS
 

 
 

 
 

Weighted average common shares outstanding for basic earnings per common share
8,414,831

 
6,725,849

 
6,113,276

Add dilutive effect of assumed exercises of stock options, net of tax benefits
66,590

 
68,951

 
85,133

Weighted average common and dilutive potential common shares outstanding
8,481,421

 
6,794,800

 
6,198,409

 
 
 
 
 
 
Earnings Per Common Share
 

 
 

 
 

Diluted
$
3.92

 
$
2.66

 
$
2.53
v3.6.0.2
SECURITIES (Tables)
 12 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
Securities available for sale were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

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

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2015
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
16,199

 
$
8

 
$
(2,263
)
 
$
13,944

Small business administration securities
54,493

 
1,563

 
—

 
56,056

Non-bank qualified obligations of states and political subdivisions
603,165

 
7,240

 
(1,815
)
 
608,590

Mortgage-backed securities
580,165

 
1,283

 
(4,865
)
 
576,583

Total debt securities
1,254,022

 
10,094

 
(8,943
)
 
1,255,173

Common equities and mutual funds
639

 
283

 
(8
)
 
914

Total available for sale securities
$
1,254,661

 
$
10,377

 
$
(8,951
)
 
$
1,256,087
Securities Held to Maturity
Securities held to maturity were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2016
COST

 
GAINS

 
(LOSSES)

 
VALUE

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

 
$
355

 
$
(44
)
 
$
20,937

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

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2015
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,540

 
$
60

 
$
(187
)
 
$
19,413

Non-bank qualified obligations of states and political subdivisions
259,627

 
2,122

 
(419
)
 
261,330

Mortgage-backed securities
66,577

 
—

 
(473
)
 
66,104

Total held to maturity securities
$
345,744

 
$
2,182

 
$
(1,079
)
 
$
346,847
Trust Preferred Securities Included in Available-for-sale Securities
Included in securities available for sale are trust preferred securities as follows:
 
At September 30, 2016
 
 
 
 
 
 
 
 
     
Issuer(1)
Amortized Cost
 
Fair Value
 
Unrealized
Gain (Loss)
 
S&P
Credit Rating
 
Moody's
Credit Rating
 
 (Dollars in Thousands)
Key Corp. Capital I
$
4,987

 
$
4,189

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

 
4,077

 
(904
)
 
BB
 
Baa2
PNC Capital Trust
4,968

 
4,712

 
(256
)
 
BBB-
 
Baa1
Total
$
14,936

 
$
12,978

 
$
(1,958
)
 
 
 
  

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

At September 30, 2015
 
 
 
 
 
 
 
 
     
Issuer(1)
Amortized Cost
 
Fair Value
 
Unrealized
Gain (Loss)
 
S&P
Credit Rating
 
Moody's
Credit Rating
 
 (Dollars in Thousands)
Key Corp. Capital I
$
4,986

 
$
4,189

 
$
(797
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
4,979

 
4,076

 
(903
)
 
BB
 
Baa2
PNC Capital Trust
4,965

 
4,402

 
(563
)
 
BBB-
 
Baa1
Total
$
14,930

 
$
12,667

 
$
(2,263
)
 
 
 
  

(1) 
Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2016, and 2015, are as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

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

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

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

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2015
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities


 


 


 


 


 


Small Business Administration securities
—

 
—

 
12,667

 
(2,263
)
 
12,667

 
(2,263
)
Non-bank qualified obligations of states and political subdivisions
97,006

 
(860
)
 
42,583

 
(955
)
 
139,589

 
(1,815
)
Mortgage-backed securities
448,988

 
(4,301
)
 
48,079

 
(564
)
 
497,067

 
(4,865
)
Total debt securities
545,994

 
(5,161
)
 
103,329

 
(3,782
)
 
649,323

 
(8,943
)
Common equities and mutual funds
—

 
—

 
121

 
(8
)
 
121

 
(8
)
Total available for sale securities
$
545,994

 
$
(5,161
)
 
$
103,450

 
$
(3,790
)
 
$
649,444

 
$
(8,951
)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
2,909

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

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

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

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

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2015
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
5,528

 
$
(34
)
 
$
7,964

 
$
(153
)
 
$
13,492

 
$
(187
)
Non-bank qualified obligations of states and political subdivisions
78,663

 
(365
)
 
4,136

 
(54
)
 
82,799

 
(419
)
Mortgage-backed securities
5,509

 
(43
)
 
60,595

 
(430
)
 
66,104

 
(473
)
Total held to maturity securities
$
89,700

 
$
(442
)
 
$
72,695

 
$
(637
)
 
$
162,395

 
$
(1,079
)
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2015
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
1,174

 
1,207

Due after five years through ten years
370,087

 
376,394

Due after ten years
302,596

 
300,989

 
673,857

 
678,590

Mortgage-backed securities
580,165

 
576,583

Common equities and mutual funds
639

 
914

Total available for sale securities
$
1,254,661

 
$
1,256,087


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

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

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574


 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2015
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
95

 
$
96

Due after one year through five years
8,411

 
8,430

Due after five years through ten years
140,145

 
140,505

Due after ten years
130,516

 
131,712

 
279,167

 
280,743

Mortgage-backed securities
66,577

 
66,104

Total held to maturity securities
$
345,744

 
$
346,847
Summary of Activities Related to Sale of Securities Available for Sale
Activities related to the sale of securities available for sale are summarized below.
 
 
2016
 
2015
 
2014
September 30,
(Dollars in Thousands)
 
 
 
 
 
 
Proceeds from sales
$
285,508

 
$
566,371

 
$
166,804

Gross gains on sales
1,459

 
2,753

 
2,292

Gross losses on sales
1,785

 
4,387

 
2,185
v3.6.0.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2016
Property, Plant and Equipment [Abstract]  
Summary of Year-End Premises and Equipment
Year-end premises and equipment were as follows:
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
Land
$
1,578

 
$
1,578

Buildings
10,482

 
10,315

Furniture, fixtures, and equipment
41,756

 
35,571

Capitalized leases
2,259

 
2,259

 
56,075

 
49,723

Less: accumulated depreciation and amortization
(37,449
)
 
(32,330
)
Net book value
$
18,626

 
$
17,393
v3.6.0.2
TIME CERTIFICATES OF DEPOSITS (Tables)
 12 Months Ended
Sep. 30, 2016
Deposits [Abstract]  
Scheduled Maturities of Time Certificates of Deposits
At September 30, 2016, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2017
$
107,116

2018
8,967

2019
4,673

2020
3,364

2021
1,839

Thereafter
33

Total Certificates
$
125,992
v3.6.0.2
SHORT TERM AND LONG TERM DEBT (Tables)
 12 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Short Term Debt
September 30,
2016
 
2015
 
 
 
 
Overnight federal funds purchased
$
992,000

 
$
540,000

Short-term FHLB advances
100,000

 
—

Short-term capital lease
79

 
—

Repurchase agreements
3,039

 
4,007

     Total
1,095,118

 
544,007
Schedule of Repurchase Agreements
An analysis of securities sold under agreements to repurchase follows:

September 30,
2016
 
2015
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,468

 
$
17,400

Average balance
2,179

 
10,883

Weighted average interest rate for the year
0.60
%
 
0.52
%
Weighted average interest rate at year end
0.61
%
 
0.58
%
Schedule of Long-term Debt
Long Term Debt

September 30,
2016
 
2015
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
7,000

 
$
7,000

Trust preferred securities
10,310

 
10,310

Subordinated debentures (net of issuance costs)
73,211

 
—

Long-term capital lease
1,939

 
2,143

     Total
92,460

 
19,453
Scheduled maturities of FHLB advances
The scheduled maturities of the Company's long-term debt are as follows for the years ending:
September 30,
 
 
 
 
 
(Dollars in Thousands)
Long-term FHLB advances
Trust preferred securities
Subordinated debentures
Long-term capital lease
Total
2017
$
—

$
—

$
—

$
—

$
—

2018
—

—

—

61

61

2019
5,000

—

—

64

5,064

2020
2,000

—

—

72

2,072

2021
—

—

—

77

77

Thereafter
—

10,310

73,211

1,665

85,186

Total long-term debt
$
7,000

$
10,310

$
73,211

$
1,939

$
92,460
v3.6.0.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables)
 12 Months Ended
Sep. 30, 2016
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
Year-End ESOP Shares
Year-end ESOP shares are as follows:
 
At September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
262,872

 
256,283

 
239,879

Unearned shares
—

 
—

 
—

Total ESOP shares
262,872

 
256,283

 
239,879

Fair value of unearned shares
$
—

 
$
—

 
$
—
v3.6.0.2
SHARE BASED COMPENSATION PLANS (Tables)
 12 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2016, 2015 and 2014.
 
Year Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively
$
559

 
$
334

 
$
120
Activity of Options
The following tables show the activity of options and nonvested (restricted) shares granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2016 and 2015.
 
 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2015
189,088

 
$
25.74

 
3.16

 
$
3,027

Granted
—

 
—

 
—

 
—

Exercised
(63,528
)
 
25.77

 
—

 
1,510

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68

 
$
4,379

 
 
 
 
 
 
 
 
Options exercisable end of year
125,560

 
$
25.73

 
2.68

 
$
4,379


 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2014
235,766

 
$
25.20

 
3.78

 
$
2,507

Granted
—

 
—

 
—

 
—

Exercised
(46,678
)
 
22.98

 
—

 
925

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2015
189,088

 
$
25.74

 
3.16

 
$
3,027

 
 
 
 
 
 
 
 
Options exercisable end of year
189,088

 
$
25.74

 
3.16

 
$
3,027
Activity of Nonvested (Restricted) Shares
 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2015
44,002

 
$
40.80

Granted
8,154

 
42.49

Vested
(33,666
)
 
40.93

Forfeited or expired
2,166

 
46.98

Nonvested shares outstanding, September 30, 2016
20,656

 
$
41.37


 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2014
4,000

 
$
28.61

Granted
51,217

 
41.10

Vested
(11,215
)
 
37.81

Forfeited or expired
—

 
—

Nonvested shares outstanding, September 30, 2015
44,002

 
$
40.80
v3.6.0.2
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes consists of:
 
Years ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
4,410

 
$
4,217

 
$
3,787

Deferred
(440
)
 
(3,896
)
 
(1,765
)
 
3,970

 
321

 
2,022

 
 
 
 
 
 
State:
 

 
 

 
 

Current
1,422

 
1,048

 
874

Deferred
210

 
(1
)
 
10

 
1,632

 
1,047

 
884

 
 
 
 
 
 
Income tax expense
$
5,602

 
$
1,368

 
$
2,906
Reconciliation of Total Income Tax Expense
Total income tax expense differs from the statutory federal income tax rate as follows:
 
Years ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
 
 
 
 
 
 
Income tax expense at federal tax rate
$
13,588

 
$
6,798

 
$
6,517

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes net of federal benefit
933

 
692

 
575

Nontaxable buildup in cash surrender value
(580
)
 
(711
)
 
(399
)
Incentive stock option expense
(66
)
 
(37
)
 
(187
)
Tax exempt income
(8,257
)
 
(5,230
)
 
(3,594
)
Nondeductible expenses
196

 
188

 
120

Other, net
(212
)
 
(332
)
 
(126
)
Total income tax expense
$
5,602

 
$
1,368

 
$
2,906
Components of Net Deferred Tax Asset (Liability)
The components of the net deferred tax asset (liability) at September 30, 2016 and 2015 are:
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
2,044

 
$
2,286

Deferred compensation
1,345

 
1,040

Stock based compensation
165

 
235

Operational reserve
540

 
453

AMT Credit
5,563

 
4,490

Intangibles
393

 
573

Indirect tax benefits of unrecognized tax positions
216

 
384

Other assets
1,462

 
1,293

 
11,728

 
10,754

 
 
 
 
Deferred tax liabilities:
 

 
 

FHLB stock dividend
(411
)
 
(414
)
Premises and equipment
(1,913
)
 
(1,222
)
Patents
(988
)
 
(967
)
Prepaid expenses
(668
)
 
(633
)
Net unrealized gains on securities available for sale
(12,348
)
 
(521
)
 
(16,328
)
 
(3,757
)
 
 
 
 
Net deferred tax assets (liabilities)
$
(4,600
)
 
$
6,997
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2016, and 2015 follows:
 
September 30,
2016

 
2015

 
(Dollars in Thousands)
Balance at beginning of year
$
974

 
$
983

Additions for tax positions related to the current year
63

 
49

Additions for tax positions related to the prior years
—

 
4

Reductions for tax positions due to settlement with taxing authorities
(372
)
 
(62
)
Reductions for tax positions related to prior years
(140
)
 
—

Balance at end of year
$
525

 
$
974
v3.6.0.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)
 12 Months Ended
Sep. 30, 2016
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
Bank's Actual and Required Capital Amount and Ratios
The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.
 
Company (Actual)
 
Bank (Actual)
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(Dollars in Thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 (core) capital (to adjusted total assets)
$
263,555

 
8.35
%
 
$
324,142

 
10.35
%
 
$
10,542

 
4.00
%
 
$
13,178

 
5.00
%
Common equity Tier 1 (to risk-weighted assets)
255,543

 
17.28

 
324,142

 
21.95

 
11,499

 
4.50

 
16,610

 
6.50

Tier 1 (core) capital (to risk-weighted assets)
263,555

 
17.82

 
324,142

 
21.95

 
15,813

 
6.00

 
21,084

 
8.00

Total qualifying capital (to risk-weighted assets)
342,589

 
23.17

 
329,965

 
22.35

 
27,407

 
8.00

 
34,259

 
10.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible capital (to tangible assets)
$
224,426

 
9.36
%
 
$
213,220

 
8.89
%
 
$
8,977

 
4.00
%
 
$
11,221

 
5.00
%
Tier 1 (core) capital (to adjusted total assets)
216,931

 
19.85

 
213,220

 
19.52

 
9,762

 
4.50

 
14,101

 
6.50

Tier 1 (core) capital (to risk-weighted assets)
224,426

 
20.54

 
213,220

 
19.52

 
13,466

 
6.00

 
17,954

 
8.00

Total risk based capital (to risk-weighted assets)
230,820

 
21.12

 
219,614

 
20.11

 
18,466

 
8.00

 
23,082

 
10.00
Reconciliation of Required Capital Amount and Ratios
The following table provides a reconciliation of the amounts included in the table above for the Company.
 
 
Standardized Approach (1)
September 30, 2016
 
(Dollars in Thousands)
 
 
Total equity
$
334,975

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
35,713

LESS: Certain other intangible assets
17,352

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
3,447

LESS: Net unrealized gains (losses) on available-for-sale securities
22,920

Common Equity Tier 1 (1)
255,543

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

LESS: Additional tier 1 capital deductions
2,298

Total Tier 1 capital
263,555

Allowance for loan losses
5,823

Subordinated debentures (net of issuance costs)
73,211

Total qualifying capital
342,589


(1) 
The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio.  Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021.  The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015.
v3.6.0.2
LEASE COMMITMENTS (Tables)
 12 Months Ended
Sep. 30, 2016
Leases [Abstract]  
Total Minimum Rental Commitment for Operating and Capital Leases
The following table shows the total minimum rental commitment for our operating and capital leases as of September 30, 2016.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2017
$
2,175

 
$
201

2018
2,092

 
179

2019
2,103

 
179

2020
2,100

 
182

2021
1,949

 
182

Thereafter
19,396

 
2,422

Total Leases Commitments
$
29,815

 
$
3,345

 
 
 
 
Amounts representing interest
 

 
$
1,327

Present value of net minimum lease payments
 

 
2,018
v3.6.0.2
SEGMENT REPORTING (Tables)
 12 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Information of Entity
Prior periods have been reclassified to conform to the current period presentation for all segment reporting, are appropriately reported below.
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2016
 
 
 
 
 
 
 
Interest income
$
9,711

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income (expense)
9,530

 
36,990

 
30,785

 
77,305

Provision (recovery) for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
74,168

 
21,516

 
38,964

 
134,648

Income (loss) before income tax expense (benefit)
29,652

 
16,120

 
(6,950
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
41,357

 
929,243

 
3,035,819

 
4,006,419

Total goodwill
—

 
—

 
36,928

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082


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

 
$
31,394

 
$
22,952

 
$
61,607

Interest expense
169

 
1,377

 
841

 
2,387

Net interest income (expense)
7,092

 
30,017

 
22,111

 
59,220

Provision (recovery) for loan losses
—

 
689

 
776

 
1,465

Non-interest income
54,417

 
3,358

 
399

 
58,174

Non-interest expense
47,458

 
17,900

 
31,148

 
96,506

Income (loss) before income tax expense (benefit)
14,051

 
14,786

 
(9,414
)
 
19,423

 
 
 
 
 
 
 
 
Total assets
44,139

 
706,172

 
1,779,394

 
2,529,705

Total goodwill
—

 
—

 
36,928

 
36,928

Total deposits
1,424,304

 
233,235

 
(5
)
 
1,657,534

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2014
 
 
 
 
 
 
 
Interest income
$
5,973

 
$
21,549

 
$
21,138

 
$
48,660

Interest expense
125

 
1,396

 
877

 
2,398

Net interest income (expense)
5,848

 
20,153

 
20,261

 
46,262

Provision (recovery) for loan losses
—

 
1,150

 
—

 
1,150

Non-interest income
48,524

 
1,986

 
1,228

 
51,738

Non-interest expense
42,536

 
12,680

 
23,015

 
78,231

Income (loss) before income tax expense (benefit)
11,836

 
8,309

 
(1,526
)
 
18,619

 
 
 
 
 
 
 
 
Total assets
38,451

 
493,538

 
1,522,042

 
2,054,031

Total deposits
1,099,548

 
266,993

 
—

 
1,366,541
v3.6.0.2
PARENT COMPANY FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Statements of Financial Condition
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2016
 
2015
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
15,716

 
$
14,280

Investment in subsidiaries
403,574

 
267,623

Other assets
413

 
408

Total assets
$
419,703

 
$
282,311

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
83,521

 
$
10,310

Other liabilities
1,207

 
666

Total liabilities
$
84,728

 
$
10,976

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
85

 
$
82

Additional paid-in capital
184,780

 
170,749

Retained earnings
127,190

 
98,359

Accumulated other comprehensive income (loss)
22,920

 
2,455

Treasury stock, at cost
—

 
(310
)
Total stockholders' equity
$
334,975

 
$
271,335

Total liabilities and stockholders' equity
$
419,703

 
$
282,311
Condensed Statements of Operations
CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
Interest expense
$
1,022

 
$
418

 
$
348

Other expense
382

 
269

 
770

Total expense
1,404

 
687

 
1,118

 
 
 
 
 
 
Gain (loss) before income taxes and equity in undistributed net income of subsidiaries
(1,404
)
 
(687
)
 
(1,118
)
 
 
 
 
 
 
Income tax (benefit)
(519
)
 
(324
)
 
(422
)
 
 
 
 
 
 
Gain (loss) before equity in undistributed net income of subsidiaries
(885
)
 
(363
)
 
(696
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
34,105

 
18,418

 
16,409

 
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713
Condensed Statements of Cash Flows
CONDENSED STATEMENTS OF CASH FLOWS
 
For the Years Ended September 30,
2016
 
2015
 
2014
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
33,220

 
$
18,055

 
$
15,713

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

 
 

 
 

Depreciation, amortization and accretion, net
(22
)
 
—

 
(310
)
Equity in undistributed net income of subsidiaries
(34,105
)
 
(18,418
)
 
(16,409
)
Change in other assets
(5
)
 
(15
)
 
246

Change in other liabilities
541

 
378

 
(332
)
Net cash provided by (used in) operating activities
(371
)
 
—

 
(1,092
)
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 

 
 

 
 

Capital contributions to subsidiaries
(81,000
)
 
(67,600
)
 
—

Net cash used in investing activities
(81,000
)
 
(67,600
)
 
—

 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

 
 

Cash dividends paid
(4,389
)
 
(3,493
)
 
(3,184
)
Stock compensation
427

 
253

 
4

Proceeds from issuance of common stock
11,500

 
75,471

 
(51
)
Proceeds from exercise of stock options
2,036

 
210

 
2,376

Proceeds from long term debt
75,000

 
—

 
—

Payment of debt issuance costs
(1,767
)
 
—

 
—

Other, net
—

 
—

 
—

Net cash provided by (used in) financing activities
82,807

 
72,441

 
(855
)
 
 
 
 
 
 
Net change in cash and cash equivalents
$
1,436

 
$
4,841

 
$
(1,947
)
 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 

 
 

 
 

Beginning of year
$
14,280

 
$
9,439

 
$
11,386

End of year
$
15,716

 
$
14,280

 
$
9,439
v3.6.0.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands)
Fiscal Year 2016
 
 
 
 
 
 
 
Interest income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision (recovery) for loan losses
786

 
1,173

 
2,098

 
548

Net Income (loss)
4,058

 
14,283

 
8,873

 
6,006

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.49

 
$
1.69

 
$
1.05

 
$
0.71

Diluted
0.49

 
1.68

 
1.04

 
0.70

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2015
 

 
 

 
 

 
 

Interest income
$
14,232

 
$
15,758

 
$
15,254

 
$
16,363

Interest expense
661

 
473

 
593

 
660

Net interest income
13,571

 
15,285

 
14,661

 
15,703

Provision (recovery) for loan losses
48

 
593

 
700

 
124

Net Income (loss)
3,595

 
5,181

 
4,640

 
4,639

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.58

 
$
0.79

 
$
0.67

 
$
0.64

Diluted
0.58

 
0.78

 
0.66

 
0.64

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13

 
 
 
 
 
 
 
 
Fiscal Year 2014
 

 
 

 
 

 
 

Interest income
$
11,162

 
$
12,063

 
$
12,566

 
$
12,869

Interest expense
649

 
544

 
638

 
567

Net interest income
10,513

 
11,519

 
11,928

 
12,302

Provision (recovery) for loan losses
—

 
300

 
300

 
550

Net Income (loss)
4,002

 
4,144

 
4,204

 
3,363

Earnings (loss) per common and common equivalent share
 

 
 

 
 

 
 

Basic
$
0.66

 
$
0.68

 
$
0.69

 
$
0.54

Diluted
0.65

 
0.67

 
0.68

 
0.53

Dividend declared per share
0.13

 
0.13

 
0.13

 
0.13
v3.6.0.2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2016 and 2015.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
 
Fair Value At September 30, 2016
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

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

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—


 
Fair Value At September 30, 2015
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred and corporate securities
$
13,944

 
$
—

 
$
13,944

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
56,056

 
—

 
56,056

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,413

 
—

 
19,413

 
—

Non-bank qualified obligations of states and political subdivisions
608,590

 
—

 
608,590

 
—

 
261,330

 
—

 
261,330

 
—

Mortgage-backed securities
576,583

 
—

 
576,583

 
—

 
66,104

 
—

 
66,104

 
—

Total debt securities
1,255,173

 
—

 
1,255,173

 
—

 
346,847

 
—

 
346,847

 
—

Common equities and mutual funds
914

 
914

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,256,087

 
$
914

 
$
1,255,173

 
$
—

 
$
346,847

 
$
—

 
$
346,847

 
$
—
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of September 30, 2016 and 2015.
 
 
Fair Value at September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
68

 
$
—

 
$
—

 
$
68

Total Impaired Loans
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
—

 
—

 
76

Total
$
144

 
$
—

 
$
—

 
$
144


 
Fair Value At September 30, 2015
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
1-4 family real estate
$
—

 
$
—

 
$
—

 
$
—

Commercial and multi-family real estate loans
663

 
—

 
—

 
663

Agricultural operating loans
1,880

 
—

 
—

 
1,880

Total
2,543

 
—

 
—

 
2,543

Foreclosed Assets, net
—

 
—

 
—

 
—

Total
$
2,543

 
$
—

 
$
—

 
$
2,543
Quantitative Information about Level 3 Fair Value Measurements
 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2016
 
Fair Value at
September 30, 2015
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans, net
$
68

 
$
2,543

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
76

 
—

 
Market approach
 
Appraised values (1)

(1) 
The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.
Carrying Amount and Estimated Fair Value of Financial Instruments
The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2016 and 2015.

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

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

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

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital leases
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred securities
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—

 
September 30, 2015
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,658

 
$
27,658

 
$
27,658

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,256,087

 
1,256,087

 
914

 
1,255,173

 
—

Securities held to maturity
345,743

 
346,847

 
—

 
346,847

 
—

Total securities
1,601,830

 
1,602,934

 
914

 
1,602,020

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
125,021

 
121,385

 
—

 
—

 
121,385

Commercial and multi-family real estate loans
310,199

 
314,372

 
—

 
—

 
314,372

Agricultural real estate loans
64,316

 
66,682

 
—

 
—

 
66,682

Consumer loans
33,527

 
33,504

 
—

 
—

 
33,504

Commercial operating loans
29,893

 
23,245

 
—

 
—

 
23,245

Agricultural operating loans
43,626

 
40,003

 
—

 
—

 
40,003

Premium finance loans
106,505

 
108,583

 
—

 
—

 
108,583

Total loans receivable
713,087

 
707,774

 
—

 
—

 
707,774

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
24,410

 
24,410

 
—

 
24,410

 
—

Accrued interest receivable
13,352

 
13,352

 
13,352

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
1,449,101

 
1,369,672

 
1,369,672

 
—

 
—

Interest bearing demand deposits, savings, and money markets
117,262

 
115,204

 
115,204

 
—

 
—

Certificates of deposit
91,171

 
91,304

 
—

 
91,304

 
—

Total deposits
1,657,534

 
1,576,180

 
1,484,876

 
91,304

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
7,000

 
8,630

 
—

 
8,630

 
—

Federal funds purchased
540,000

 
540,000

 
540,000

 
—

 
—

Securities sold under agreements to repurchase
4,007

 
4,007

 
—

 
4,007

 
—

Trust preferred securities
10,310

 
10,416

 
—

 
10,416

 
—

Accrued interest payable
272

 
272

 
272

 
—

 
—
v3.6.0.2
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Amortizable Intangible Assets
As part of the each business combination, the Company also recognized the following amortizable intangible assets:
 
AFS/IBEX:
Intangible
Amount Upon Acquisition
 
Accumulated Amortization
 
Balance at September 30, 2016
 
Book Amortization
Period (Years)
 
Method
Trademark
$
540

 
$
(66
)
 
$
474

 
15
 
Straight Line
Non-Compete
260

 
(159
)
 
101

 
3
 
Straight Line
Customer Relationships
7,240

 
(2,296
)
 
4,944

 
30
 
Accelerated
Other
173

 
(92
)
 
81

 
Varied
 
Straight Line
Total
$
8,213

 
$
(2,613
)
 
$
5,600

 
 
 
 

Refund Advantage: 
Intangible
Amount Upon Acquisition
 
Accumulated Amortization
 
Balance at September 30, 2016
 
Book Amortization
Period (Years)
 
Method
Trademark
$
4,950

 
$
(275
)
 
$
4,675

 
15
 
Accelerated
Non-Compete
40

 
(14
)
 
26

 
3
 
Straight Line
Customer Relationships
18,800

 
(3,154
)
 
15,646

 
12 to 20
 
Accelerated
Other
329

 
(73
)
 
256

 
Varied
 
Straight Line
Total
$
24,119

 
$
(3,516
)
 
$
20,603

 
 
 
 
Changes in Carrying Amount of Goodwill and Intangible Assets
The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2016 and 2015 are as follows:
 
 
September 30,
 
2016
 
2015
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
36,928

 
$
—

Acquisitions during the period
—

 
36,928

Write-offs during the period
—

 
—

Ending balance
$
36,928

 
$
36,928


The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2016. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded quantitative analysis was not required and no impairment existed.
 
 
Trademark
 
Non-Compete
 
Customer
Relationships
 
All Others
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
172

 
172

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

 
—

 
—

 
—

 
—

Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921


 
Trademark
 
Non-Compete
 
Customer
Relationships
 
All Others
 
Total
Intangibles
 
Balance as of September 30, 2014
$
—

 
$
—

 
$
—

 
$
2,588

 
$
2,588

Acquisitions during the period
5,490

 
300

 
26,040

 
855

 
32,685

Amortization during the period
(51
)
 
(73
)
 
(1,229
)
 
(282
)
 
(1,635
)
Write-offs during the period
—

 
—

 
—

 
(61
)
 
(61
)
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577
Anticipated Future Amortization of Intangibles
The anticipated future amortization of intangibles is as follows:
 
September 30,
 
(Dollars in Thousands)
2017
$
4,128

2018
3,529

2019
3,013

2020
2,610

2021
2,271

Thereafter
13,370

Total anticipated intangible amortization
$
28,921
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
USD ($)
segment
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
PRINCIPLES OF CONSOLIDATION [Abstract]      
Percentage of interest in subsidiary 100.00%    
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract]      
Number of reporting segments | segment 3    
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract]      
Terms of FHLB advances 90 days    
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) $ 0 $ 4,100  
Interest bearing deposits held at FRB 512,900    
SECURITIES [Abstract]      
Recorded balance 78 6,036  
Other than temporary impairment $ 0 0 $ 0
LOANS RECEIVABLE [Abstract]      
Period when loan becomes delinquent 90 days    
Period when loan becomes delinquent for premium finance 210 days    
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS [Abstract]      
Aggregate unpaid balance of loans serviced for others $ 19,400 $ 22,200  
ALLOWANCE FOR LOAN LOSSES [Abstract]      
Look back period 7 years    
Buildings [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture and equipment, estimated useful lives 10 years    
Buildings [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture and equipment, estimated useful lives 40 years    
Leasehold Improvements [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture and equipment, estimated useful lives 2 years    
Leasehold Improvements [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture and equipment, estimated useful lives 15 years    
v3.6.0.2
ACQUISITIONS (Details)
 12 Months Ended
Sep. 08, 2015
USD ($)
Dec. 02, 2014
USD ($)
AgencyOffice
Agency
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Acquisition
Sep. 30, 2014
USD ($)
Business Acquisition [Line Items]          
Number of acquisitions | Acquisition       2  
Fair value of liabilities assumed          
Goodwill resulting from acquisition $ 25,400,000 $ 11,600,000 $ 36,928,000 $ 36,928,000 $ 0
AFS/IBEX Financial Services Inc [Member]          
Business Acquisition [Line Items]          
Number of independent insurance agencies | Agency   1,300      
Number of agency offices | AgencyOffice   2      
Allowance for credit losses   $ 0      
Revenue       7,600,000  
Net income       800,000  
Transaction costs       600,000  
Fair value of consideration paid          
Cash   99,255,000      
Total consideration paid   99,255,000      
Fair value of assets acquired          
Cash and cash equivalents   6,947,000      
Loans receivable, net   74,120,000      
Prepaid assets   156,000      
Furniture and equipment, net   449,000      
Intangible assets   8,213,000      
Other assets   6,000      
Total assets   89,891,000      
Fair value of liabilities assumed          
Accrued expenses and other liabilities   2,214,000      
Total liabilities assumed   2,214,000      
Fair value of net assets acquired   87,677,000      
Goodwill resulting from acquisition   $ 11,578,000      
AFS/IBEX Financial Services Inc [Member] | Customer Relationships [Member]          
Business Acquisition [Line Items]          
Amortization period     30 years    
AFS/IBEX Financial Services Inc [Member] | Dallas [Member]          
Business Acquisition [Line Items]          
Number of agency offices | AgencyOffice   1      
AFS/IBEX Financial Services Inc [Member] | Southern California [Member]          
Business Acquisition [Line Items]          
Number of agency offices | AgencyOffice   1      
Refund Advantage [Member]          
Business Acquisition [Line Items]          
Transaction costs       $ 900,000  
Fair value of consideration paid          
Cash 26,060,000        
Total consideration paid 50,363,000        
Fair value of assets acquired          
Cash and cash equivalents 2,821,000        
Prepaid assets 23,000        
Furniture and equipment, net 55,000        
Intangible assets 24,119,000        
Other assets 457,000        
Total assets 27,475,000        
Fair value of liabilities assumed          
Accrued expenses and other liabilities 2,463,000        
Total liabilities assumed 2,463,000        
Fair value of net assets acquired 25,012,000        
Goodwill resulting from acquisition 25,351,000        
Stock issued $ 24,303,000        
Refund Advantage [Member] | Customer Relationships [Member] | Minimum [Member]          
Business Acquisition [Line Items]          
Amortization period       12 years  
Refund Advantage [Member] | Customer Relationships [Member] | Maximum [Member]          
Business Acquisition [Line Items]          
Amortization period       20 years  
Refund Advantage [Member] | Trademark [Member]          
Business Acquisition [Line Items]          
Amortization period       15 years  
v3.6.0.2
LOANS RECEIVABLE, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable $ 925,894 $ 713,087
Less:    
Allowance for Loan Losses (5,635) (6,255)
Net Deferred Loan Origination Fees (789) (577)
Total Loans Receivable, Net 919,470 706,255
1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 162,298 125,021
Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 422,932 310,199
Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 63,612 64,316
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 37,094 33,527
Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 31,271 29,893
Agricultural Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable 37,083 43,626
Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans receivable $ 171,604 $ 106,505
v3.6.0.2
LOANS RECEIVABLE, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2016
Sep. 30, 2015
Allowance for Credit Losses [Roll Forward]          
Beginning balance $ 6,255 $ 5,397 $ 3,930    
Provision (recovery) for loan losses (4,605) (1,465) (1,150)    
Charge offs (5,372) (730) (50)    
Recoveries 147 123 367    
Ending balance 5,635 6,255 5,397    
Ending balance: individually evaluated for impairment       $ 10 $ 3,493
Ending balance: collectively evaluated for impairment       5,625 2,762
Total 6,255 5,397 3,930 5,635 6,255
Loans:          
Ending balance: individually evaluated for impairment       595 6,614
Ending balance: collectively evaluated for impairment       925,299 706,473
Total loans receivable       925,894 713,087
1-4 Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 278 552      
Provision (recovery) for loan losses (408) 229      
Charge offs (32) (45)      
Recoveries 0 0      
Ending balance 654 278 552    
Ending balance: individually evaluated for impairment       10 0
Ending balance: collectively evaluated for impairment       644 278
Total 278 552 552 654 278
Loans:          
Ending balance: individually evaluated for impairment       162 121
Ending balance: collectively evaluated for impairment       162,136 124,900
Total loans receivable       162,298 125,021
Commercial and Multi-Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 1,187 1,575      
Provision (recovery) for loan losses (1,369) 180      
Charge offs (385) (214)      
Recoveries 27 6      
Ending balance 2,198 1,187 1,575    
Ending balance: individually evaluated for impairment       0 241
Ending balance: collectively evaluated for impairment       2,198 946
Total 1,187 1,575 1,575 2,198 1,187
Loans:          
Ending balance: individually evaluated for impairment       433 1,350
Ending balance: collectively evaluated for impairment       422,499 308,849
Total loans receivable       422,932 310,199
Agricultural Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 163 263      
Provision (recovery) for loan losses 21 100      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 142 163 263    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       142 163
Total 163 263 263 142 163
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       63,612 64,316
Total loans receivable       63,612 64,316
Consumer [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 20 78      
Provision (recovery) for loan losses (748) 58      
Charge offs (728) 0      
Recoveries 11 0      
Ending balance 51 20 78    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       51 20
Total 20 78 78 51 20
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       37,094 33,527
Total loans receivable       37,094 33,527
Commercial Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 28 93      
Provision (recovery) for loan losses (338) 68      
Charge offs (249) 0      
Recoveries 0 3      
Ending balance 117 28 93    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       117 28
Total 28 93 93 117 28
Loans:          
Ending balance: individually evaluated for impairment       0 11
Ending balance: collectively evaluated for impairment       31,271 29,882
Total loans receivable       31,271 29,893
Agricultural Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 3,537 719      
Provision (recovery) for loan losses (1,045) (3,004)      
Charge offs (3,252) (186)      
Recoveries 2 0      
Ending balance 1,332 3,537 719    
Ending balance: individually evaluated for impairment       0 3,252
Ending balance: collectively evaluated for impairment       1,332 285
Total 3,537 719 719 1,332 3,537
Loans:          
Ending balance: individually evaluated for impairment       0 5,132
Ending balance: collectively evaluated for impairment       37,083 38,494
Total loans receivable       37,083 43,626
Premium Finance [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 293 0      
Provision (recovery) for loan losses (914) (464)      
Charge offs (726) (285)      
Recoveries 107 114      
Ending balance 588 293 0    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       588 293
Total 293 0 0 588 293
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       171,604 106,505
Total loans receivable       171,604 106,505
Unallocated [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 749 2,117      
Provision (recovery) for loan losses 196 1,368      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 553 749 2,117    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       553 749
Total $ 749 $ 2,117 $ 2,117 553 749
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       0 0
Total loans receivable       $ 0 $ 0
v3.6.0.2
LOANS RECEIVABLE, NET - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 925,894 $ 713,087
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 876,194 666,177
Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 8,015 30,125
Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 32,710 4,901
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 8,975 11,884
Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 162,298 125,021
1-4 Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 161,255 124,775
1-4 Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 200 212
1-4 Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 666 10
1-4 Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 177 24
1-4 Family Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 422,932 310,199
Commercial and Multi-Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 421,577 307,876
Commercial and Multi-Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 72 1,419
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 962 0
Commercial and Multi-Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 321 904
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Agricultural Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 63,612 64,316
Agricultural Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 34,421 35,106
Agricultural Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 2,934 26,703
Agricultural Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 25,675 877
Agricultural Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 582 1,630
Agricultural Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 37,094 33,527
Consumer [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 37,094 33,527
Consumer [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Consumer [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 31,271 29,893
Commercial Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 30,574 29,052
Commercial Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 184 712
Commercial Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Commercial Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 513 129
Commercial Operating [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Agricultural Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 37,083 43,626
Agricultural Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 19,669 29,336
Agricultural Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 4,625 1,079
Agricultural Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 5,407 4,014
Agricultural Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 7,382 9,197
Agricultural Operating [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 171,604 106,505
Premium Finance [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 171,604 106,505
Premium Finance [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Premium Finance [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 0 $ 0
v3.6.0.2
LOANS RECEIVABLE, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due $ 3,226 $ 3,099
Current 922,585 703,928
Non-accrual loans 83 6,060
Total loans receivable 925,894 713,087
30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,549 996
60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 659 362
Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,018 1,741
1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 30 142
Current 162,185 124,855
Non-accrual loans 83 24
Total loans receivable 162,298 125,021
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 142
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 30 0
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Current 422,932 309,295
Non-accrual loans 0 904
Total loans receivable 422,932 310,199
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Current 63,612 64,316
Non-accrual loans 0 0
Total loans receivable 63,612 64,316
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 53 165
Current 37,041 33,362
Non-accrual loans 0 0
Total loans receivable 37,094 33,527
Consumer [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 152
Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 53 13
Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 505 0
Current 30,766 29,893
Non-accrual loans 0 0
Total loans receivable 31,271 29,893
Commercial Operating [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 151 0
Commercial Operating [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 354 0
Commercial Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Current 37,083 38,494
Non-accrual loans 0 5,132
Total loans receivable 37,083 43,626
Agricultural Operating [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Operating [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Agricultural Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Premium Finance [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 2,638 2,792
Current 168,966 103,713
Non-accrual loans 0 0
Total loans receivable 171,604 106,505
Premium Finance [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,398 702
Premium Finance [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 275 362
Premium Finance [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due $ 965 $ 1,728
v3.6.0.2
LOANS RECEIVABLE, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Loans without specific valuation allowance [Abstract]    
Recorded balance $ 517 $ 578
Unpaid principal balance 517 578
Loans with a specific valuation allowance [Abstract]    
Recorded balance 78 6,036
Unpaid principal balance 78 6,186
Specific allowance 10 3,493
Average recorded investment in impaired loans 4,186 5,928
1-4 Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 84 121
Unpaid principal balance 84 121
Loans with a specific valuation allowance [Abstract]    
Recorded balance 78 0
Unpaid principal balance 78 0
Specific allowance 10 0
Average recorded investment in impaired loans 144 238
Commercial and Multi-Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 433 446
Unpaid principal balance 433 446
Loans with a specific valuation allowance [Abstract]    
Recorded balance   904
Unpaid principal balance   904
Specific allowance   241
Average recorded investment in impaired loans 1,117 2,114
Commercial Operating [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance   11
Unpaid principal balance   11
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 6 17
Agricultural Operating [Member]    
Loans with a specific valuation allowance [Abstract]    
Recorded balance   5,132
Unpaid principal balance   5,282
Specific allowance   3,252
Average recorded investment in impaired loans $ 2,919 $ 3,559
v3.6.0.2
LOANS RECEIVABLE, NET - Troubled Debt Restructured Loans (Details) - Contract
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Loans and Leases Receivable Disclosure [Abstract]    
Loans modified in TDR 0 0
Loans modified in TDR, subsequent default 0 0
v3.6.0.2
LOANS RECEIVABLE, NET - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total purchased loans secured by properties $ 6,400  
Commercial real estate loans secured by hotel properties 65,400 $ 51,100
Commercial real estate loans secured by multi-family properties 112,600 99,600
Non-accruing loans 83 6,060
Accruing loans delinquent 90 days or more 1,000 $ 1,700
Gross interest income $ 0  
Oregon, North Dakota, North Carolina and Connecticut [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of loans secured by properties 1.00%  
v3.6.0.2
LOAN SERVICING (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Transfers and Servicing [Abstract]      
Mortgage loan portfolios serviced for Fannie Mae $ 3,980 $ 5,055 $ 5,948
Other 15,452 17,156 16,576
Total $ 19,432 $ 22,211 $ 22,524
v3.6.0.2
EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Earnings                              
Net Income $ 6,006 $ 8,873 $ 14,283 $ 4,058 $ 4,639 $ 4,640 $ 5,181 $ 3,595 $ 3,363 $ 4,204 $ 4,144 $ 4,002 $ 33,220 $ 18,055 $ 15,713
Basic EPS                              
Weighted average common shares outstanding (in shares)                         8,443,956 6,730,086 6,117,577
Less weighted average nonvested shares (in shares)                         (29,125) (4,237) (4,301)
Weighted average common shares outstanding (in shares)                         8,414,831 6,725,849 6,113,276
Earnings Per Common Share                              
Basic (in dollars per share) $ 0.71 $ 1.05 $ 1.69 $ 0.49 $ 0.64 $ 0.67 $ 0.79 $ 0.58 $ 0.54 $ 0.69 $ 0.68 $ 0.66 $ 3.95 $ 2.68 $ 2.57
Diluted EPS                              
Weighted average common shares outstanding for basic earnings per common share (in shares)                         8,414,831 6,725,849 6,113,276
Add dilutive effect of assumed exercises of stock options, net of tax benefits (in shares)                         66,590 68,951 85,133
Weighted average common and dilutive potential common shares outstanding (in shares)                         8,481,421 6,794,800 6,198,409
Earnings Per Common Share                              
Diluted (in dollars per share) $ 0.70 $ 1.04 $ 1.68 $ 0.49 $ 0.64 $ 0.66 $ 0.78 $ 0.58 $ 0.53 $ 0.68 $ 0.67 $ 0.65 $ 3.92 $ 2.66 $ 2.53
Stock Options [Member]                              
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                              
Securities excluded from computing diluted EPS (in shares)                           28,891 29,984
v3.6.0.2
SECURITIES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Available-for-sale debt securities [Abstract]      
Mortgage-backed securities available-for-sale $ 558,940 $ 576,583  
Available-for-sale equity securities [Abstract]      
Fair value 910,309 679,504  
Available-for-sale securities [Abstract]      
Amortized cost 1,435,272 1,254,661  
Gross unrealized gains 37,257 10,377  
Gross unrealized (losses) (3,280) (8,951)  
Total securities 1,469,249 1,256,087  
Amortized Cost 1,435,272 1,254,661  
Fair Value 1,469,249 1,256,087  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 151,949 545,994  
OVER 12 MONTHS, Fair Value 52,770 103,450  
TOTAL, Fair Value 204,719 649,444  
LESS THAN 12 MONTHS, Unrealized (Losses) (1,033) (5,161)  
OVER 12 MONTHS, Unrealized (Losses) (2,247) (3,790)  
TOTAL, Unrealized (Losses) (3,280) (8,951)  
AMORTIZED COST [Abstract]      
Due in one year or less 0 0  
Due after one year through five years 17,370 1,174  
Due after five years through ten years 426,034 370,087  
Due after ten years 436,077 302,596  
Total Amortized Cost 879,481 673,857  
Mortgage-backed securities 555,036 580,165  
Common equities and mutual funds 755 639  
Amortized cost 1,435,272 1,254,661  
FAIR VALUE [Abstract]      
Due in one year or less 0 0  
Due after one year through five years 17,897 1,207  
Due after five years through ten years 446,771 376,394  
Due after ten years 444,516 300,989  
Total Fair Value 909,184 678,590  
Common equities and mutual funds 1,125 914  
Total securities 1,469,249 1,256,087  
Summary of activities related to the sale of available for sale securities [Abstract]      
Proceeds from sales 285,508 566,371 $ 166,804
Gross gains on sales 1,459 2,753 2,292
Gross losses on sales 1,785 4,387 $ 2,185
Held-to-maturity Securities [Abstract]      
Amortized cost 619,853 345,744  
Gross unrealized gains 12,807 2,182  
Gross unrealized (losses) (86) (1,079)  
Fair value 632,574 346,847  
Held-to-maturity securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 24,264 89,700  
OVER 12 MONTHS, Fair Value 2,256 72,695  
TOTAL, Fair Value 26,520 162,395  
LESS THAN 12 MONTHS, Unrealized (Losses) (55) (442)  
OVER 12 MONTHS, Unrealized (Losses) (31) (637)  
TOTAL, Unrealized (Losses) (86) (1,079)  
AMORTIZED COST [Abstract]      
Due in one year or less 472 95  
Due after one year through five years 12,502 8,411  
Due after five years through ten years 157,944 140,145  
Due after ten years 315,177 130,516  
Total Amortized Cost 486,095 279,167  
Mortgage-backed securities 133,758 66,577  
Amortized cost 619,853 345,744  
FAIR VALUE [Abstract]      
Due in one year or less 471 96  
Due after one year through five years 12,696 8,430  
Due after five years through ten years 163,806 140,505  
Due after ten years 321,166 131,712  
Total Fair Value 498,139 280,743  
Mortgage-backed securities 134,435 66,104  
Total securities 632,574 346,847  
Trust Preferred Securities [Member]      
Available-for-sale securities [Abstract]      
Amortized cost 14,936 14,930  
Total securities 12,978 12,667  
Amortized Cost 14,936 14,930  
Fair Value 12,978 12,667  
Unrealized Gain (Loss) (1,958) (2,263)  
AMORTIZED COST [Abstract]      
Amortized cost 14,936 14,930  
FAIR VALUE [Abstract]      
Total securities 12,978 12,667  
S&P Credit Rating, BB+ [Member] | Moody's Credit Rating, Baa2 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member]      
Available-for-sale securities [Abstract]      
Amortized cost 4,987 4,986  
Total securities 4,189 4,189  
Amortized Cost 4,987 4,986  
Fair Value 4,189 4,189  
Unrealized Gain (Loss) (798) (797)  
AMORTIZED COST [Abstract]      
Amortized cost 4,987 4,986  
FAIR VALUE [Abstract]      
Total securities 4,189 4,189  
S&P Credit Rating, BB [Member] | Moody's Credit Rating, Baa2 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member]      
Available-for-sale securities [Abstract]      
Amortized cost 4,981 4,979  
Total securities 4,077 4,076  
Amortized Cost 4,981 4,979  
Fair Value 4,077 4,076  
Unrealized Gain (Loss) (904) (903)  
AMORTIZED COST [Abstract]      
Amortized cost 4,981 4,979  
FAIR VALUE [Abstract]      
Total securities 4,077 4,076  
Standard & Poor's, BBB- Rating [Member] | Moody's Credit Rating, Baa1 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member]      
Available-for-sale securities [Abstract]      
Amortized cost 4,968 4,965  
Total securities 4,712 4,402  
Amortized Cost 4,968 4,965  
Fair Value 4,712 4,402  
Unrealized Gain (Loss) (256) (563)  
AMORTIZED COST [Abstract]      
Amortized cost 4,968 4,965  
FAIR VALUE [Abstract]      
Total securities 4,712 4,402  
Trust preferred and corporate securities [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 14,935 16,199  
Gross unrealized gains 0 8  
Gross unrealized (losses) (1,957) (2,263)  
Mortgage-backed securities available-for-sale 12,978 13,944  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 0  
OVER 12 MONTHS, Fair Value 12,978  
TOTAL, Fair Value 12,978  
LESS THAN 12 MONTHS, Unrealized (Losses) 0  
OVER 12 MONTHS, Unrealized (Losses) (1,957)  
TOTAL, Unrealized (Losses) (1,957)  
Small Business Administration Securities [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 78,431 54,493  
Gross unrealized gains 2,288 1,563  
Gross unrealized (losses) 0 0  
Mortgage-backed securities available-for-sale 80,719 56,056  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value   0  
OVER 12 MONTHS, Fair Value   12,667  
TOTAL, Fair Value   12,667  
LESS THAN 12 MONTHS, Unrealized (Losses)   0  
OVER 12 MONTHS, Unrealized (Losses)   (2,263)  
TOTAL, Unrealized (Losses)   (2,263)  
Non-Bank Qualified Obligation of States And Political Subdivisions [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 668,628 603,165  
Gross unrealized gains 30,141 7,240  
Gross unrealized (losses) (97) (1,815)  
Mortgage-backed securities available-for-sale 698,672 608,590  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 8,481 97,006  
OVER 12 MONTHS, Fair Value 2,688 42,583  
TOTAL, Fair Value 11,169 139,589  
LESS THAN 12 MONTHS, Unrealized (Losses) (58) (860)  
OVER 12 MONTHS, Unrealized (Losses) (39) (955)  
TOTAL, Unrealized (Losses) (97) (1,815)  
Asset-backed Securities [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 117,487    
Gross unrealized gains 73    
Gross unrealized (losses) (745)    
Mortgage-backed securities available-for-sale 116,815    
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 89,403    
OVER 12 MONTHS, Fair Value 0    
TOTAL, Fair Value 89,403    
LESS THAN 12 MONTHS, Unrealized (Losses) (745)    
OVER 12 MONTHS, Unrealized (Losses) 0    
TOTAL, Unrealized (Losses) (745)    
Collateralized Mortgage Backed Securities [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 555,036 580,165  
Gross unrealized gains 4,382 1,283  
Gross unrealized (losses) (478) (4,865)  
Mortgage-backed securities available-for-sale 558,940 576,583  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 54,065 448,988  
OVER 12 MONTHS, Fair Value 36,979 48,079  
TOTAL, Fair Value 91,044 497,067  
LESS THAN 12 MONTHS, Unrealized (Losses) (230) (4,301)  
OVER 12 MONTHS, Unrealized (Losses) (248) (564)  
TOTAL, Unrealized (Losses) (478) (4,865)  
Debt Securities [Member]      
Available-for-sale debt securities [Abstract]      
Amortized cost 1,434,517 1,254,022  
Gross unrealized gains 36,884 10,094  
Gross unrealized (losses) (3,277) (8,943)  
Mortgage-backed securities available-for-sale 1,468,124 1,255,173  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 151,949 545,994  
OVER 12 MONTHS, Fair Value 52,645 103,329  
TOTAL, Fair Value 204,594 649,323  
LESS THAN 12 MONTHS, Unrealized (Losses) (1,033) (5,161)  
OVER 12 MONTHS, Unrealized (Losses) (2,244) (3,782)  
TOTAL, Unrealized (Losses) (3,277) (8,943)  
Common Equities And Mutual Funds [Member]      
Available-for-sale equity securities [Abstract]      
Amortized cost 755 639  
Gross unrealized gains 373 283  
Gross unrealized (losses) (3) (8)  
Fair value 1,125 914  
Available-for-sale securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 0 0  
OVER 12 MONTHS, Fair Value 125 121  
TOTAL, Fair Value 125 121  
LESS THAN 12 MONTHS, Unrealized (Losses) 0 0  
OVER 12 MONTHS, Unrealized (Losses) (3) (8)  
TOTAL, Unrealized (Losses) (3) (8)  
US States and Political Subdivisions Debt Securities [Member]      
Held-to-maturity Securities [Abstract]      
Amortized cost 20,626 19,540  
Gross unrealized gains 355 60  
Gross unrealized (losses) (44) (187)  
Fair value 20,937 19,413  
Held-to-maturity securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 2,909 5,528  
OVER 12 MONTHS, Fair Value 2,256 7,964  
TOTAL, Fair Value 5,165 13,492  
LESS THAN 12 MONTHS, Unrealized (Losses) (13) (34)  
OVER 12 MONTHS, Unrealized (Losses) (31) (153)  
TOTAL, Unrealized (Losses) (44) (187)  
AMORTIZED COST [Abstract]      
Amortized cost 20,626 19,540  
FAIR VALUE [Abstract]      
Total securities 20,937 19,413  
Non-Bank Qualified Obligation of States And Political Subdivisions [Member]      
Held-to-maturity Securities [Abstract]      
Amortized cost 465,469 259,627  
Gross unrealized gains 11,744 2,122  
Gross unrealized (losses) (11) (419)  
Fair value 477,202 261,330  
Held-to-maturity securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 1,294 78,663  
OVER 12 MONTHS, Fair Value 0 4,136  
TOTAL, Fair Value 1,294 82,799  
LESS THAN 12 MONTHS, Unrealized (Losses) (11) (365)  
OVER 12 MONTHS, Unrealized (Losses) 0 (54)  
TOTAL, Unrealized (Losses) (11) (419)  
AMORTIZED COST [Abstract]      
Amortized cost 465,469 259,627  
FAIR VALUE [Abstract]      
Total securities 477,202 261,330  
Collateralized Mortgage Backed Securities [Member]      
Held-to-maturity Securities [Abstract]      
Amortized cost 133,758 66,577  
Gross unrealized gains 708 0  
Gross unrealized (losses) (31) (473)  
Fair value 134,435 66,104  
Held-to-maturity securities in a continuous unrealized loss position [Abstract]      
LESS THAN 12 MONTHS, Fair Value 20,061 5,509  
OVER 12 MONTHS, Fair Value 0 60,595  
TOTAL, Fair Value 20,061 66,104  
LESS THAN 12 MONTHS, Unrealized (Losses) (31) (43)  
OVER 12 MONTHS, Unrealized (Losses) 0 (430)  
TOTAL, Unrealized (Losses) (31) (473)  
AMORTIZED COST [Abstract]      
Amortized cost 133,758 66,577  
FAIR VALUE [Abstract]      
Total securities $ 134,435 $ 66,104  
v3.6.0.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 56,075 $ 49,723  
Less: accumulated depreciation and amortization (37,449) (32,330)  
Net book value 18,626 17,393  
Depreciation expense of premises, furniture, and equipment 5,400 4,600 $ 3,500
Amortization expense on capitalized leases 200 100  
Land [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 1,578 1,578  
Buildings [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 10,482 10,315  
Furniture, Fixtures, and Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 41,756 35,571  
Capitalized Leases [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 2,259 $ 2,259  
v3.6.0.2
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Deposits [Abstract]    
IRA deposit accounts permanently insured by DIF under management of FDIC $ 250,000  
Time certificates of deposits in denominations of $250,000 or more 44,500,000 $ 38,500,000
Time Deposits, Fiscal Year Maturity [Abstract]    
2017 107,116,000  
2018 8,967,000  
2019 4,673,000  
2020 3,364,000  
2021 1,839,000  
Thereafter 33,000  
Total Certificates 125,992,000 $ 91,171,000
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC $ 250,000  
v3.6.0.2
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Short Term Debt (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
USD ($)
Lease
Sep. 30, 2015
USD ($)
Short-term Debt [Line Items]    
Short-term debt $ 1,095,118 $ 544,007
Fixed rate of FHLB advances 0.46%  
Pledged securities against specific FHLB advances, fair value $ 824,500 625,200
Qualified mortgage loans pledged as collateral $ 501,000 369,600
Number of capital leases | Lease 3  
Number of equipment leases | Lease 2  
Number of property leases | Lease 1  
Leases, current $ 79  
Leases expense in next twelve months 201  
Securities sold under agreements to repurchase, total 3,000 4,000
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract]    
Highest month-end balance 3,468 17,400
Average balance $ 2,179 $ 10,883
Weighted average interest rate for the year 0.60% 0.52%
Weighted average interest rate at year end 0.61% 0.58%
Securities pledged as collateral for securities sold under agreement to repurchase, fair value $ 9,200 $ 20,600
Overnight federal funds purchased [Member]    
Short-term Debt [Line Items]    
Short-term debt 992,000 540,000
Short-term FHLB advances [Member]    
Short-term Debt [Line Items]    
Short-term debt 100,000 0
Short-term capital lease [Member]    
Short-term Debt [Line Items]    
Short-term debt 79 0
Repurchase agreements [Member]    
Short-term Debt [Line Items]    
Short-term debt $ 3,039 $ 4,007
v3.6.0.2
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Debt Disclosure [Abstract]    
Long-term FHLB advances $ 7,000 $ 7,000
Trust preferred securities 10,310 10,310
Trust preferred securities, Total 10,310  
Subordinated debentures (net of issuance costs) 73,211 0
Long-term capital lease 1,939 2,143
Long-term FHLB advances    
2017 0  
2018 0  
2019 5,000  
2020 2,000  
2021 0  
Thereafter 0  
Total Long-term Federal Home Loan Bank Advances 7,000 7,000
Long-term capital lease    
2017 0  
2018 61  
2019 64  
2020 72  
2021 77  
Thereafter 1,665  
Total Long-term capital lease 1,939 2,143
Maturities of Long-term Debt    
Total 2017 0  
Total 2018 61  
Total 2019 5,064  
Total 2020 2,072  
Total 2021 77  
Total Thereafter 85,186  
Total Long-term Debt $ 92,460 $ 19,453
v3.6.0.2
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt Narrative (Details)
$ / shares in Thousands, $ in Thousands
 12 Months Ended
Sep. 30, 2016
USD ($)
Period
Lease
$ / shares
shares
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Debt Instrument [Line Items]      
Advances from FHLB $ 7,000 $ 7,000  
Weighted average rate 6.98%    
Weighted average rate of FHLB advances 0.46%    
Gross proceeds from long term debt $ 75,000 0 $ 0
Proceeds from debt, net of issuance costs 73,211 0  
Accrued interest payable $ 875 $ 272  
Number of capital leases | Lease 3    
Number of equipment leases | Lease 2    
Number of property leases | Lease 1    
Leases expense in next twelve months $ 1,900    
First Midwest Financial Capital Trust I [Member]      
Debt Instrument [Line Items]      
Equity method investment, ownership percentage 100.00%    
Issuance of trust preferred securities (in shares) | shares 10,000    
Number of authorized shares of trust preferred securities issued (in shares) | shares 10,310    
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period 10    
Redemption price per capital security (in dollars per share) | $ / shares $ 1    
First Midwest Financial Capital Trust I [Member] | LIBOR [Member]      
Debt Instrument [Line Items]      
Basis spread on variable rate 3.75%    
Effective interest rate 4.99% 4.28%  
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 [Member] | Subordinated Debt [Member]      
Debt Instrument [Line Items]      
Gross proceeds from long term debt $ 75,000    
Interest rate, stated percentage 5.75%    
Net proceeds from issuance of debt, before issuance costs $ 73,900    
Proceeds from debt, net of issuance costs 73,200    
Debt issuance costs 1,800    
Accrued interest payable $ 500    
Weighted Average [Member]      
Debt Instrument [Line Items]      
Weighted average rate of FHLB advances   6.98%  
Weighted Average [Member] | First Midwest Financial Capital Trust I [Member] | LIBOR [Member]      
Debt Instrument [Line Items]      
Effective interest rate 12.50%    
v3.6.0.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]      
Number of hours of employment required for ESOP 1000 hours    
Years of employment to be eligible for ESOP 1 year    
Eligible age for ESOP 21 years    
Employee Stock Ownership Plan (ESOP), Expense $ 1,150,000 $ 994,000 $ 703,000
Contribution to ESOP $ 1,174,682 $ 992,038 $ 850,406
Percentage of benefits vested after credited service 100.00%    
ESOP award vesting period 7 years    
Years of credited service 7 years    
Number of shares (ESOP) released (in shares) 19,381 23,750 24,125
Fair value of shares (ESOP) released (in dollars per share) $ 60.61 $ 41.77 $ 35.25
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) 15,502 10,294 10,643
Shares purchased for dividend reinvestment (in shares) 2,710 2,974 2,529
Year-end ESOP shares [Abstract]      
Allocated shares (in shares) 262,872 256,283 239,879
Unearned shares (in shares) 0 0 0
Total ESOP shares (in shares) 262,872 256,283 239,879
Fair value of unearned shares $ 0 $ 0 $ 0
Contribution expense to profit sharing plan included in compensation and benefits $ 1,260,000 $ 1,100,000 $ 900,000
v3.6.0.2
SHARE BASED COMPENSATION PLANS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively $ 559,000 $ 334,000 $ 120,000
Tax effects of employee's stock-based compensation expense recognized income 192,000 $ 66,000 51,000
Stock based compensation expense not yet recognized in income $ 200,000    
Weighted average remaining period for unrecognized stock based compensation 1 year 10 months 10 days    
Period that options are issued 10 years    
Percentage of options vesting at either grant date or over four year period 100.00%    
Period that options vest 4 years    
Options graned in the period 8,154 51,217  
Fair value of directors shares granted during the period $ 0 $ 0 $ 0
Director [Member]      
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Options graned in the period 200,000 100,000 100,000
v3.6.0.2
SHARE BASED COMPENSATION PLANS - Summary of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Number of Shares [Roll Forward]      
Options outstanding, beginning of period (in shares) 189,088 235,766  
Granted (in shares) 0 0  
Exercised (in shares) (63,528) (46,678)  
Forfeited or expired (in shares) 0 0  
Options outstanding, end of period (in shares) 125,560 189,088 235,766
Options exercisable end of year (in shares) 125,560 189,088  
Weighted Average Exercise Price [Roll Forward]      
Options outstanding, beginning of period (in dollars per share) $ 25.74 $ 25.20  
Granted (in dollars per share) 0.00 0.00  
Exercised (in dollars per share) 25.77 22.98  
Forfeited or expired (in dollars per share) 0.00 0.00  
Options outstanding, end of period (in dollars per share) 25.73 25.74 $ 25.20
Options exercisable end of year (in dollars per share) $ 25.73 $ 25.74  
Weighted Average Remaining Contractual Term (Yrs) [Abstract]      
Options outstanding , weighted average remaining contractual term (Yrs) 2 years 8 months 5 days 3 years 1 month 28 days 3 years 9 months 11 days
Options exercisable end of year, weighted average remaining contractual term (Yrs) 2 years 8 months 5 days 3 years 1 month 28 days  
Aggregate Intrinsic Value [Abstract]      
Options outstanding, beginning of period $ 3,027 $ 2,507  
Granted 0 0  
Exercised 1,510 925 $ 1,400
Forfeited or expired 0 0  
Options outstanding, end of period $ 4,379 3,027 $ 2,507
Options exercisable end of year   $ 3,027  
v3.6.0.2
SHARE BASED COMPENSATION PLANS - Nonvested Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 44,002 4,000
Granted (in shares) 8,154 51,217
Vested (in shares) (33,666) (11,215)
Forfeited or expired (in shares) 2,166 0
Nonvested shares outstanding, end of period (in shares) 20,656 44,002
Weighted Average Fair Value At Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 40.80 $ 28.61
Granted (in dollars per share) 42.49 41.10
Vested (in dollars per share) 40.93 37.81
Forfeited or expired (in dollars per share) 46.98 0.00
Nonvested shares outstanding, end of period (in dollars per share) $ 41.37 $ 40.80
v3.6.0.2
INCOME TAXES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Federal:      
Current $ 4,410 $ 4,217 $ 3,787
Deferred (440) (3,896) (1,765)
Federal income tax expense 3,970 321 2,022
State:      
Current 1,422 1,048 874
Deferred 210 (1) 10
State tax expense 1,632 1,047 884
Income tax expense 5,602 1,368 2,906
Income tax expense (benefit) to statutory federal income tax rate reconciliation [Abstract]      
Income tax expense at federal tax rate 13,588 6,798 6,517
Increase (decrease) resulting from:      
State income taxes net of federal benefit 933 692 575
Nontaxable buildup in cash surrender value (580) (711) (399)
Incentive stock option expense (66) (37) (187)
Tax exempt income (8,257) (5,230) (3,594)
Nondeductible expenses 196 188 120
Other, net (212) (332) (126)
Income tax expense 5,602 1,368 2,906
Deferred tax assets:      
Bad debts 2,044 2,286  
Deferred compensation 1,345 1,040  
Stock based compensation 165 235  
Operational reserve 540 453  
AMT Credit 5,563 4,490  
Intangibles 393 573  
Indirect tax benefits of unrecognized tax positions 216 384  
Other assets 1,462 1,293  
Gross deferred tax assets 11,728 10,754  
Deferred tax liabilities:      
FHLB stock dividend (411) (414)  
Premises and equipment (1,913) (1,222)  
Patents (988) (967)  
Prepaid expenses (668) (633)  
Net unrealized gains on securities available for sale (12,348) (521)  
Gross deferred tax liabilities (16,328) (3,757)  
Net deferred tax liabilities (4,600)    
Net deferred tax assets   6,997  
Gross deferred tax on state net operating loss carryforwards 921 829  
Additional bad debt deductions provided by federal income tax laws 6,700    
Deferred tax liability, bad debt deductions 2,300 2,300  
Reconciliation for liabilities [Abstract]      
Balance at beginning of year 974 983  
Additions for tax positions related to the current year 63 49  
Additions for tax positions related to the prior years 0 4  
Reductions for tax positions due to settlement with taxing authorities (372) (62)  
Reductions for tax positions related to prior years (140) 0  
Balance at end of year 525 $ 974 $ 983
Unrecognized tax benefits that, if recognized, would impact the effective rate 347    
Accrued interest related to unrecognized tax benefits 110    
Deferred Tax Expense, Event of Liquidation $ 2,300    
v3.6.0.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), amount $ 263,555 $ 216,931
Tier 1 (core) capital (to adjusted total assets), ratio 8.35% 19.85%
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, amount $ 10,542 $ 9,762
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio 4.00% 4.50%
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount $ 13,178 $ 14,101
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 5.00% 6.50%
Common equity Tier 1 (to risk-weighted assets), actual amount $ 255,543  
Common equity Tier 1 (to risk-weighted assets), actual ratio 17.28%  
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount $ 11,499  
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 4.50%  
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount $ 16,610  
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 6.50%  
Tangible capital (to tangible assets), actual amount   $ 224,426
Tangible capital (to tangible assets), actual ratio   9.36%
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, amount   $ 8,977
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, ratio   4.00%
Tangible capital (to tangible assets), minimum requirement to be well capitalized under prompt corrective actions provisions, actual amount   $ 11,221
Tangible capital (to tangible assets), minimum requirement to be well capitalized under prompt corrective actions provisions, ratio   5.00%
Tier 1 (core) capital (to risk-weighted assets), actual amount $ 263,555 $ 224,426
Tier 1 (core) capital ( to risk weighted assets), ratio 17.82% 20.54%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount $ 15,813 $ 13,466
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 6.00% 6.00%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount $ 21,084 $ 17,954
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 8.00% 8.00%
Total qualifying capital (to risk-weighted assets), actual amount $ 342,589  
Total qualifying capital (to risk-weighted assets), ratio 23.17%  
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount $ 27,407  
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 8.00%  
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount $ 34,259  
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 10.00%  
Total risk based capital (to risk weighted assets), actual amount   $ 230,820
Total risk based capital (to risk weighted assets), ratio   21.12%
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, amount   $ 18,466
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, ratio   8.00%
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount   $ 23,082
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio   10.00%
MetaBank [Member]    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), amount $ 324,142 $ 213,220
Tier 1 (core) capital (to adjusted total assets), ratio 10.35% 19.52%
Common equity Tier 1 (to risk-weighted assets), actual amount $ 324,142  
Common equity Tier 1 (to risk-weighted assets), actual ratio 21.95%  
Tangible capital (to tangible assets), actual amount   $ 213,220
Tangible capital (to tangible assets), actual ratio   8.89%
Tier 1 (core) capital (to risk-weighted assets), actual amount $ 324,142 $ 213,220
Tier 1 (core) capital ( to risk weighted assets), ratio 21.95% 19.52%
Total qualifying capital (to risk-weighted assets), actual amount $ 329,965  
Total qualifying capital (to risk-weighted assets), ratio 22.35%  
Total risk based capital (to risk weighted assets), actual amount   $ 219,614
Total risk based capital (to risk weighted assets), ratio   20.11%
v3.6.0.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
Reconciliation of capital amounts [Abstract]        
Total equity $ 334,975 $ 271,335 $ 174,802 $ 142,984
Adjustments:        
LESS: Goodwill, net of associated deferred tax liabilities 35,713      
LESS: Certain other intangible assets 17,352      
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 3,447      
LESS: Net unrealized gains (losses) on available-for-sale securities 22,920      
Common Equity Tier 1 255,543      
Long-term debt and other instruments qualifying as Tier 1 10,310      
LESS: Additional tier 1 capital deductions 2,298      
Total Tier 1 capital 263,555 $ 224,426    
Allowance for loan losses 5,823      
Subordinated debentures (net of issuance costs) 73,211      
Total qualifying capital $ 342,589      
v3.6.0.2
COMMITMENTS AND CONTINGENCIES (Details)
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2014
USD ($)
Jun. 30, 2016
USD ($)
Sep. 30, 2016
USD ($)
commitment
Oct. 14, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2015
case
Sep. 30, 2015
company
Sep. 30, 2015
court
Commitments and Contingencies Disclosure [Abstract]                
Unfunded loan commitments     $ 182,900,000   $ 158,300,000      
Commitment to purchase securities         0      
Number of commitment to purchase securities, available for sale | commitment     2          
Purchase commitment amount, available for sale     $ 7,900,000          
Number of commitment to purchase securities, held to maturity | commitment     3          
Purchase commitment amount, held to maturity     $ 3,000,000          
Securities pledged as collateral for public funds on deposit     5,800,000   5,800,000      
Securities pledged as collateral for individual, trust, and estate deposits     3,400,000   $ 14,800,000      
Loss Contingencies [Line Items]                
Number of identified limited liability companies | company             3  
Loss Contingency, Damages Awarded, Value     $ 6,100,000          
Number of class action litigations | case           4    
Number of federal district courts             3 3
Litigation Settlement, Amount   $ 74,000            
Inter National Bank [Member]                
Loss Contingencies [Line Items]                
Amount of shortfall in depository account $ 10,500,000              
UniRush, LLC [Member]                
Loss Contingencies [Line Items]                
Period of inability of customers of prepaid card product to access product     14 days          
Subsequent Event [Member] | Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member]                
Loss Contingencies [Line Items]                
Estimate of possible loss       $ 1,579,398        
v3.6.0.2
LEASE COMMITMENTS (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
USD ($)
Leases [Abstract]  
Expiration period of various noncancelable operating lease agreements Dec. 31, 2036
Annual rent, minimum $ 14
Annual rent, maximum $ 750
Expiration period of capital lease agreements Dec. 31, 2035
Amortization expense for capital leases $ 100
Total minimum rental commitments for operating leases [Abstract]  
2017 2,175
2018 2,092
2019 2,103
2020 2,100
2021 1,949
Thereafter 19,396
Total Operating Lease Commitments 29,815
Total minimum rental commitments for capital leases [Abstract]  
2017 201
2018 179
2019 179
2020 182
2021 182
Thereafter 2,422
Total Capital Lease Commitments 3,345
Amounts representing interest 1,327
Present value of net minimum lease payments $ 2,018
v3.6.0.2
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Sep. 30, 2015
USD ($)
Jun. 30, 2015
USD ($)
Mar. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Sep. 30, 2014
USD ($)
Jun. 30, 2014
USD ($)
Mar. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Sep. 30, 2016
USD ($)
segment
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Sep. 08, 2015
USD ($)
Dec. 02, 2014
USD ($)
Segment Reporting [Abstract]                                  
Number of reportable segments | segment                         3        
Segment data [Abstract]                                  
Interest income                         $ 81,396 $ 61,607 $ 48,660    
Interest expense $ 1,836 $ 844 $ 691 $ 720 $ 660 $ 593 $ 473 $ 661 $ 567 $ 638 $ 544 $ 649 4,091 2,387 2,398    
Net interest income (expense)                         77,305 59,220 46,262    
Provision (recovery) for loan losses 548 $ 2,098 $ 1,173 $ 786 124 $ 700 $ 593 $ 48 550 $ 300 $ 300 $ 0 4,605 1,465 1,150    
Non-interest income                         100,770 58,174 51,738    
Non-interest expense                         134,648 96,506 78,231    
Income (loss) before income tax expense (benefit)                         38,822 19,423 18,619    
Total assets 4,006,419       2,529,705       2,054,031       4,006,419 2,529,705 2,054,031    
Goodwill 36,928       36,928       0       36,928 36,928 0 $ 25,400 $ 11,600
Total deposits 2,430,082       1,657,534       1,366,541       2,430,082 1,657,534 1,366,541    
Payments                                  
Segment data [Abstract]                                  
Interest income                         9,711 7,261 5,973    
Interest expense                         181 169 125    
Net interest income (expense)                         9,530 7,092 5,848    
Provision (recovery) for loan losses                         971 0 0    
Non-interest income                         95,261 54,417 48,524    
Non-interest expense                         74,168 47,458 42,536    
Income (loss) before income tax expense (benefit)                         29,652 14,051 11,836    
Total assets 41,357       44,139       38,451       41,357 44,139 38,451    
Goodwill 0       0               0 0      
Total deposits 2,131,042       1,424,304       1,099,548       2,131,042 1,424,304 1,099,548    
Banking                                  
Segment data [Abstract]                                  
Interest income                         38,321 31,394 21,549    
Interest expense                         1,331 1,377 1,396    
Net interest income (expense)                         36,990 30,017 20,153    
Provision (recovery) for loan losses                         3,634 689 1,150    
Non-interest income                         4,280 3,358 1,986    
Non-interest expense                         21,516 17,900 12,680    
Income (loss) before income tax expense (benefit)                         16,120 14,786 8,309    
Total assets 929,243       706,172       493,538       929,243 706,172 493,538    
Goodwill 0       0               0 0      
Total deposits 299,030       233,235       266,993       299,030 233,235 266,993    
Corporate Services/Other                                  
Segment data [Abstract]                                  
Interest income                         33,364 22,952 21,138    
Interest expense                         2,579 841 877    
Net interest income (expense)                         30,785 22,111 20,261    
Provision (recovery) for loan losses                         0 776 0    
Non-interest income                         1,229 399 1,228    
Non-interest expense                         38,964 31,148 23,015    
Income (loss) before income tax expense (benefit)                         (6,950) (9,414) (1,526)    
Total assets 3,035,819       1,779,394       1,522,042       3,035,819 1,779,394 1,522,042    
Goodwill 36,928       36,928               36,928 36,928      
Total deposits $ 10       $ (5)       $ 0       $ 10 $ (5) $ 0    
v3.6.0.2
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2013
ASSETS [Abstract]                                      
Cash and cash equivalents $ 773,830     $ 27,658 $ 27,658     $ 29,832 $ 29,832     $ 40,063 $ 27,658 $ 29,832 $ 40,063 $ 773,830 $ 27,658 $ 29,832 $ 40,063
Other assets                               1,492 777    
Total assets                               4,006,419 2,529,705 2,054,031  
LIABILITIES [Abstract]                                      
Subordinated debentures                               92,460 19,453    
Accrued expenses and other liabilities                               48,309 36,773    
Total liabilities                               3,671,444 2,258,370    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock                               85 82    
Additional paid-in capital                               184,780 170,749    
Retained earnings                               127,190 98,359    
Accumulated other comprehensive income (loss)                               22,920 2,455    
Treasury stock, at cost                               0 (310)    
Total equity                               334,975 271,335 174,802 142,984
Total liabilities and stockholders' equity                               4,006,419 2,529,705    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense 1,836 $ 844 $ 691 720 660 $ 593 $ 473 661 567 $ 638 $ 544 649 4,091 2,387 2,398        
Other expense                         134,648 96,506 78,231        
Income tax expense (benefit)                         5,602 1,368 2,906        
Net income 6,006 8,873 14,283 4,058 4,639 4,640 5,181 3,595 3,363 4,204 4,144 4,002 33,220 18,055 15,713        
Cash flows from operating activities:                                      
Net income 6,006 $ 8,873 $ 14,283 4,058 4,639 $ 4,640 $ 5,181 3,595 3,363 $ 4,204 $ 4,144 4,002 33,220 18,055 15,713        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         35,617 28,882 18,147        
Net change in other assets                         (1,968) (672) (807)        
Change in other liabilities                         11,112 6,780 (2,326)        
Net cash provided by operating activities                         78,011 48,956 25,813        
Cash flows from investing activities:                                      
Net cash used in investing activities                         (738,480) (453,915) (367,796)        
Cash flows from financing activities:                                      
Cash dividends paid                         (4,389) (3,493) (3,184)        
Stock compensation                         487 258 88        
Proceeds from long term debt                         75,000 0 0        
Payment of debt issuance costs                         (1,767) 0 0        
Net cash provided by financing activities                         1,406,641 402,785 331,752        
Net change in cash and cash equivalents                         746,172 (2,174) (10,231)        
CASH AND CASH EQUIVALENTS [Abstract]                                      
Cash and cash equivalents at beginning of year       27,658       29,832       40,063 27,658 29,832 40,063        
Cash and cash equivalents at end of year 773,830       27,658       29,832       773,830 27,658 29,832        
Meta Financial [Member]                                      
ASSETS [Abstract]                                      
Cash and cash equivalents 15,716     14,280 14,280     9,439 9,439     11,386 14,280 9,439 11,386 15,716 14,280 $ 9,439 $ 11,386
Investment in subsidiaries                               403,574 267,623    
Other assets                               413 408    
Total assets                               419,703 282,311    
LIABILITIES [Abstract]                                      
Subordinated debentures                               83,521 10,310    
Accrued expenses and other liabilities                               1,207 666    
Total liabilities                               84,728 10,976    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock                               85 82    
Additional paid-in capital                               184,780 170,749    
Retained earnings                               127,190 98,359    
Accumulated other comprehensive income (loss)                               22,920 2,455    
Treasury stock, at cost                               0 (310)    
Total equity                               334,975 271,335    
Total liabilities and stockholders' equity                               $ 419,703 $ 282,311    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense                         1,022 418 348        
Other expense                         382 269 770        
Total expense                         1,404 687 1,118        
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries                         (1,404) (687) (1,118)        
Income tax expense (benefit)                         (519) (324) (422)        
Gain (Loss) before equity in undistributed net income of subsidiaries                         (885) (363) (696)        
Equity in undistributed net income of subsidiaries                         34,105 18,418 16,409        
Net income                         33,220 18,055 15,713        
Cash flows from operating activities:                                      
Net income                         33,220 18,055 15,713        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         (22) 0 (310)        
Equity in undistributed net income of subsidiaries                         (34,105) (18,418) (16,409)        
Net change in other assets                         (5) (15) 246        
Change in other liabilities                         541 378 (332)        
Net cash provided by operating activities                         (371) 0 (1,092)        
Cash flows from investing activities:                                      
Capital contributions to subsidiaries                         (81,000) (67,600) 0        
Net cash used in investing activities                         (81,000) (67,600) 0        
Cash flows from financing activities:                                      
Cash dividends paid                         (4,389) (3,493) (3,184)        
Stock compensation                         427 253 4        
Proceeds from issuance of common stock                         11,500 75,471 (51)        
Proceeds from exercise of stock options                         2,036 210 2,376        
Proceeds from long term debt                         75,000 0 0        
Payment of debt issuance costs                         (1,767) 0 0        
Other, net                         0 0 0        
Net cash provided by financing activities                         82,807 72,441 (855)        
Net change in cash and cash equivalents                         1,436 4,841 (1,947)        
CASH AND CASH EQUIVALENTS [Abstract]                                      
Cash and cash equivalents at beginning of year       $ 14,280       $ 9,439       $ 11,386 14,280 9,439 11,386        
Cash and cash equivalents at end of year $ 15,716       $ 14,280       $ 9,439       $ 15,716 $ 14,280 $ 9,439        
v3.6.0.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]                              
Interest income $ 21,729 $ 20,763 $ 20,629 $ 18,275 $ 16,363 $ 15,254 $ 15,758 $ 14,232 $ 12,869 $ 12,566 $ 12,063 $ 11,162      
Interest expense 1,836 844 691 720 660 593 473 661 567 638 544 649 $ 4,091 $ 2,387 $ 2,398
Net interest income 19,893 19,919 19,938 17,555 15,703 14,661 15,285 13,571 12,302 11,928 11,519 10,513 77,305 59,220 46,262
Provision (recovery) for loan losses 548 2,098 1,173 786 124 700 593 48 550 300 300 0 4,605 1,465 1,150
Net Income (loss) $ 6,006 $ 8,873 $ 14,283 $ 4,058 $ 4,639 $ 4,640 $ 5,181 $ 3,595 $ 3,363 $ 4,204 $ 4,144 $ 4,002 $ 33,220 $ 18,055 $ 15,713
Earnings (loss) per common and common equivalent share [Abstract]                              
Basic (in dollars per share) $ 0.71 $ 1.05 $ 1.69 $ 0.49 $ 0.64 $ 0.67 $ 0.79 $ 0.58 $ 0.54 $ 0.69 $ 0.68 $ 0.66 $ 3.95 $ 2.68 $ 2.57
Diluted (in dollars per share) 0.70 1.04 1.68 0.49 0.64 0.66 0.78 0.58 0.53 0.68 0.67 0.65 $ 3.92 $ 2.66 $ 2.53
Dividend declared per share (in dollars per share) $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.13      
v3.6.0.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
Sep. 30, 2016
Sep. 30, 2015
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Available-for-sale Securities [Abstract]    
Total debt securities 558,940,000 576,583,000
Total securities 1,469,249,000 1,256,087,000
Held-to-maturity Securities [Abstract]    
Total securities 632,574,000 346,847,000
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 76,000 0
Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Total securities 1,125,000 914,000
Held-to-maturity Securities [Abstract]    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 1 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Total securities 1,468,124,000 1,255,173,000
Held-to-maturity Securities [Abstract]    
Total securities 632,574,000 346,847,000
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Total securities 0 0
Held-to-maturity Securities [Abstract]    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 926,803,000 707,774,000
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 163,886,000 121,385,000
Level 3 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 422,307,000 314,372,000
Level 3 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 36,897,000 40,003,000
Recurring [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 12,978,000 13,944,000
Small business administration securities 80,719,000 56,056,000
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 698,672,000 608,590,000
Mortgage-backed securities 558,940,000 576,583,000
Total debt securities 1,468,124,000 1,255,173,000
Common Equities and Mutual Funds, Available-for-Sale 1,125,000 914,000
Total securities 1,469,249,000 1,256,087,000
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 20,937,000 19,413,000
Non-bank qualified obligations of states and political subdivisions 477,202,000 261,330,000
Mortgage-backed securities 134,435,000 66,104,000
Total debt securities 632,574,000 346,847,000
Common equities and mutual funds 0 0
Total securities 632,574,000 346,847,000
Asset Backed Securities Available For Sale Fair Value Disclosure 116,815,000  
Asset Backed Securities Held To Maturity 0  
Recurring [Member] | Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 1,125,000 914,000
Total securities 1,125,000 914,000
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Asset Backed Securities Available For Sale Fair Value Disclosure 0  
Asset Backed Securities Held To Maturity 0  
Recurring [Member] | Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 12,978,000 13,944,000
Small business administration securities 80,719,000 56,056,000
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 698,672,000 608,590,000
Mortgage-backed securities 558,940,000 576,583,000
Total debt securities 1,468,124,000 1,255,173,000
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 1,468,124,000 1,255,173,000
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 20,937,000 19,413,000
Non-bank qualified obligations of states and political subdivisions 477,202,000 261,330,000
Mortgage-backed securities 134,435,000 66,104,000
Total debt securities 632,574,000 346,847,000
Common equities and mutual funds 0 0
Total securities 632,574,000 346,847,000
Asset Backed Securities Available For Sale Fair Value Disclosure 116,815,000  
Asset Backed Securities Held To Maturity 0  
Recurring [Member] | Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 0 0
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Asset Backed Securities Available For Sale Fair Value Disclosure 0  
Asset Backed Securities Held To Maturity 0  
Nonrecurring [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 144,000 2,543,000
Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 68,000 2,543,000
Nonrecurring [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   663,000
Nonrecurring [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   1,880,000
Nonrecurring [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 76,000 0
Nonrecurring [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring [Member] | Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring [Member] | Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 144,000 2,543,000
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 68,000 2,543,000
Nonrecurring [Member] | Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   0
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   663,000
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net   1,880,000
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets $ 76,000 $ 0
v3.6.0.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Minimum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (in hundredths) 4.00%  
Maximum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (in hundredths) 10.00%  
Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 926,803 $ 707,774
Impaired Loans [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 68 2,543
Valuation techniques [1] Appraised values  
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value of Impaired Loans, Net and Foreclosed Assets, Net $ 76 $ 0
Valuation techniques [1] Appraised values  
[1] The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.
v3.6.0.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2014
Financial assets [Abstract]      
Securities available for sale $ 1,469,249 $ 1,256,087  
Securities held to maturity 632,574 346,847  
Financial liabilities [Abstract]      
Capital leases 0 2,259 $ 0
Trust preferred securities 10,310 10,310  
Subordinated debentures 73,211    
Level 1 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 773,830 27,658  
Securities available for sale 1,125 914  
Securities held to maturity 0 0  
Total securities 1,125 914  
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Federal Home Loan Bank stock 0 0  
Accrued interest receivable 17,199 13,352  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,167,522 1,369,672  
Interest bearing demand deposits, savings, and money markets 136,568 115,204  
Certificates of deposit 0 0  
Total deposits 2,304,090 1,484,876  
Advances from Federal Home Loan Bank 0 0  
Federal funds purchased 992,000 540,000  
Securities sold under agreements to repurchase 0 0  
Capital leases 0    
Trust preferred securities 0 0  
Subordinated debentures 0    
Accrued interest payable 875 272  
Level 2 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 0 0  
Securities available for sale 1,468,124 1,255,173  
Securities held to maturity 632,574 346,847  
Total securities 2,100,698 1,602,020  
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Federal Home Loan Bank stock 47,512 24,410  
Accrued interest receivable 0 0  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 0 0  
Interest bearing demand deposits, savings, and money markets 0 0  
Certificates of deposit 125,772 91,304  
Total deposits 125,772 91,304  
Advances from Federal Home Loan Bank 108,168 8,630  
Federal funds purchased 0 0  
Securities sold under agreements to repurchase 3,039 4,007  
Capital leases 2,018    
Trust preferred securities 10,437 10,416  
Subordinated debentures 77,250    
Accrued interest payable 0 0  
Level 3 [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 0 0  
Securities available for sale 0 0  
Securities held to maturity 0 0  
Total securities 0 0  
Loans receivable: [Abstract]      
Impaired Loans, Net 926,803 707,774  
Federal Home Loan Bank stock 0 0  
Accrued interest receivable 0 0  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 0 0  
Interest bearing demand deposits, savings, and money markets 0 0  
Certificates of deposit 0 0  
Total deposits 0 0  
Advances from Federal Home Loan Bank 0 0  
Federal funds purchased 0 0  
Securities sold under agreements to repurchase 0 0  
Capital leases 0    
Trust preferred securities 0 0  
Subordinated debentures 0    
Accrued interest payable 0 0  
Carrying Amount [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 773,830 27,658  
Securities available for sale 1,469,249 1,256,087  
Securities held to maturity 619,853 345,743  
Total securities 2,089,102 1,601,830  
Loans receivable: [Abstract]      
Impaired Loans, Net 925,894 713,087  
Federal Home Loan Bank stock 47,512 24,410  
Accrued interest receivable 17,199 13,352  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,167,522 1,449,101  
Interest bearing demand deposits, savings, and money markets 136,568 117,262  
Certificates of deposit 125,992 91,171  
Total deposits 2,430,082 1,657,534  
Advances from Federal Home Loan Bank 107,000 7,000  
Federal funds purchased 992,000 540,000  
Securities sold under agreements to repurchase 3,039 4,007  
Capital leases 2,018    
Trust preferred securities 10,310 10,310  
Subordinated debentures 73,211    
Accrued interest payable 875 272  
Estimated Fair Value [Member]      
Financial assets [Abstract]      
Cash and cash equivalents 773,830 27,658  
Securities available for sale 1,469,249 1,256,087  
Securities held to maturity 632,574 346,847  
Total securities 2,101,823 1,602,934  
Loans receivable: [Abstract]      
Impaired Loans, Net 926,803 707,774  
Federal Home Loan Bank stock 47,512 24,410  
Accrued interest receivable 17,199 13,352  
Financial liabilities [Abstract]      
Non-interest bearing demand deposits 2,167,522 1,369,672  
Interest bearing demand deposits, savings, and money markets 136,568 115,204  
Certificates of deposit 125,772 91,304  
Total deposits 2,429,862 1,576,180  
Advances from Federal Home Loan Bank 108,168 8,630  
Federal funds purchased 992,000 540,000  
Securities sold under agreements to repurchase 3,039 4,007  
Capital leases 2,018    
Trust preferred securities 10,437 10,416  
Subordinated debentures 77,250    
Accrued interest payable 875 272  
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 163,886 121,385  
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 162,298 125,021  
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 163,886 121,385  
Commercial and Multifamily Real Estate Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial and Multifamily Real Estate Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial and Multifamily Real Estate Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 422,307 314,372  
Commercial and Multifamily Real Estate Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 422,932 310,199  
Commercial and Multifamily Real Estate Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 422,307 314,372  
Agricultural Real Estate Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Real Estate Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Real Estate Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 63,868 66,682  
Agricultural Real Estate Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 63,612 64,316  
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 63,868 66,682  
Consumer Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Consumer Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Consumer Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 36,738 33,504  
Consumer Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 37,094 33,527  
Consumer Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 36,738 33,504  
Commercial Operating [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial Operating [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Commercial Operating [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 31,108 23,245  
Commercial Operating [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 31,271 29,893  
Commercial Operating [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 31,108 23,245  
Agricultural Operating Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Operating Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Agricultural Operating Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 36,897 40,003  
Agricultural Operating Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 37,083 43,626  
Agricultural Operating Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 36,897 40,003  
Premium Finance Loans [Member] | Level 1 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Premium Finance Loans [Member] | Level 2 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 0 0  
Premium Finance Loans [Member] | Level 3 [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 172,000 108,583  
Premium Finance Loans [Member] | Carrying Amount [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net 171,604 106,505  
Premium Finance Loans [Member] | Estimated Fair Value [Member]      
Loans receivable: [Abstract]      
Impaired Loans, Net $ 172,000 $ 108,583  
v3.6.0.2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 08, 2015
Dec. 02, 2014
Finite-Lived Intangible Assets [Line Items]          
Goodwill $ 36,928 $ 0 $ 36,928 $ 25,400 $ 11,600
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amortization during the period (4,828) (1,635)      
Goodwill [Roll Forward]          
Balance, beginning of period 36,928 0      
Acquisitions during the period 0 36,928      
Write-offs during the period 0 0      
Balance, end of period 36,928 36,928      
Intangible Assets [Roll Forward]          
Balance, beginning of period 33,577 2,588      
Acquisitions during the period 172 32,685      
Amortization during the period (4,828) (1,635)      
Write-offs during the period 0 (61)      
Balance, end of period 28,921 33,577      
Anticipated intangible amortization [Abstract]          
2017     4,128    
2018     3,529    
2019     3,013    
2020     2,610    
2021     2,271    
Thereafter     13,370    
Total anticipated intangible amortization 33,577 2,588 28,921    
AFS/IBEX Financial Services Inc [Member]          
Finite-Lived Intangible Assets [Line Items]          
Goodwill         $ 11,578
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 8,213        
Amortization during the period (2,613)        
Balance at the end of the period 5,600 8,213      
Intangible Assets [Roll Forward]          
Amortization during the period (2,613)        
Refund Advantage [Member]          
Finite-Lived Intangible Assets [Line Items]          
Goodwill       $ 25,351  
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 24,119        
Amortization during the period (3,516)        
Balance at the end of the period 20,603 24,119      
Intangible Assets [Roll Forward]          
Amortization during the period (3,516)        
Other Business Combinations [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 3,054        
Amortization during the period (336)        
Balance at the end of the period 2,718 3,054      
Intangible Assets [Roll Forward]          
Amortization during the period (336)        
Trademark [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amortization during the period (290) (51)      
Intangible Assets [Roll Forward]          
Balance, beginning of period 5,439 0      
Acquisitions during the period 0 5,490      
Amortization during the period (290) (51)      
Write-offs during the period 0 0      
Balance, end of period 5,149 5,439      
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 5,439 0 5,149    
Trademark [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 540        
Amortization during the period (66)        
Balance at the end of the period $ 474 540      
Book Amortization Period 15 years        
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (66)        
Trademark [Member] | Refund Advantage [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 4,950        
Amortization during the period (275)        
Balance at the end of the period $ 4,675 4,950      
Book Amortization Period 15 years        
Method Accelerated        
Intangible Assets [Roll Forward]          
Amortization during the period $ (275)        
Non-Compete [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amortization during the period (100) (73)      
Intangible Assets [Roll Forward]          
Balance, beginning of period 227 0      
Acquisitions during the period 0 300      
Amortization during the period (100) (73)      
Write-offs during the period 0 0      
Balance, end of period 127 227      
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 227 0 127    
Non-Compete [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 260        
Amortization during the period (159)        
Balance at the end of the period $ 101 260      
Book Amortization Period 3 years        
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (159)        
Non-Compete [Member] | Refund Advantage [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 40        
Amortization during the period (14)        
Balance at the end of the period $ 26 40      
Book Amortization Period 3 years        
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (14)        
Customer Relationships [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amortization during the period (4,221) (1,229)      
Intangible Assets [Roll Forward]          
Balance, beginning of period 24,811 0      
Acquisitions during the period 0 26,040      
Amortization during the period (4,221) (1,229)      
Write-offs during the period 0 0      
Balance, end of period 20,590 24,811      
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 24,811 0 20,590    
Customer Relationships [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 7,240        
Amortization during the period (2,296)        
Balance at the end of the period $ 4,944 7,240      
Book Amortization Period 30 years        
Method Accelerated        
Intangible Assets [Roll Forward]          
Amortization during the period $ (2,296)        
Customer Relationships [Member] | Refund Advantage [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 18,800        
Amortization during the period (3,154)        
Balance at the end of the period $ 15,646 18,800      
Method Accelerated        
Intangible Assets [Roll Forward]          
Amortization during the period $ (3,154)        
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Book Amortization Period 12 years        
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Book Amortization Period 20 years        
Other [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amortization during the period $ (217) (282)      
Intangible Assets [Roll Forward]          
Balance, beginning of period 3,100 2,588      
Acquisitions during the period 172 855      
Amortization during the period (217) (282)      
Write-offs during the period 0 (61)      
Balance, end of period 3,055 3,100      
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 3,100 2,588 $ 3,055    
Other [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 173        
Amortization during the period (92)        
Balance at the end of the period $ 81 173      
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (92)        
Other [Member] | Refund Advantage [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 329        
Amortization during the period (73)        
Balance at the end of the period $ 256 329      
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (73)        
Other [Member] | Other Business Combinations [Member]          
Amortization of Intangible Assets Roll Forward [Roll Forward]          
Amount Upon Acquisition 3,054        
Amortization during the period (336)        
Balance at the end of the period $ 2,718 $ 3,054      
Method Straight Line        
Intangible Assets [Roll Forward]          
Amortization during the period $ (336)        
v3.6.0.2
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]
$ in Millions
Nov. 09, 2016
USD ($)
shares
Nov. 01, 2016
USD ($)
franchise
shares
Oct. 26, 2016
USD ($)
retail_locations
Specialty Consumer Services LP [Member]      
Subsequent Event [Line Items]      
Consideration transferred $ 15.0    
Contingent consideration, performance target earnout payments $ 17.5    
Contingent consideration, performance target earnout payments (in shares) | shares 264,431    
EPS [Member]      
Subsequent Event [Line Items]      
Number of Electronic Return Originators | franchise   10,000  
Consideration transferred   $ 42.5  
Cash consideration   $ 21.3  
Equity interest issued | shares   369,179  
H&R Block [Member]      
Subsequent Event [Line Items]      
Number of franchise retail locations | retail_locations     12,000
H&R Block [Member]      
Subsequent Event [Line Items]      
Loan funding commitment     $ 1,450.0
Loan funding retained     $ 750.0