Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 26, 2018 | Mar. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | META FINANCIAL GROUP INC | ||
Entity Central Index Key | 907,471 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 979.7 | ||
Entity Common Stock, Shares Outstanding | 39,406,938 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2018 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
ASSETS | |||
Cash and cash equivalents | $ 99,977 | $ 1,267,586 | |
Investment securities available-for-sale | 1,487,960 | 1,106,977 | |
Mortgage-backed securities available-for-sale | 364,065 | 586,454 | |
Investment securities held to maturity | 164,304 | 449,840 | |
Mortgage-backed securities held to maturity | 7,850 | 113,689 | |
Loans held for sale | 15,606 | 0 | |
Loans and leases receivable | 2,944,739 | 1,325,371 | |
Allowance for loan and lease losses | (13,040) | (7,534) | |
Federal Home Loan Bank stock, at cost | 23,400 | 61,123 | |
Accrued interest receivable | 22,016 | 19,380 | |
Premises, furniture, and equipment, net | 40,458 | 19,320 | |
Rental equipment | 107,290 | 0 | |
Bank-owned life insurance | 87,293 | 84,702 | |
Foreclosed real estate and repossessed assets | 31,638 | 292 | |
Goodwill | 303,270 | 98,723 | |
Intangible assets | 70,719 | 52,178 | |
Prepaid assets | 27,906 | 28,392 | |
Deferred taxes | 18,737 | 9,101 | |
Other assets | 30,879 | 12,738 | |
Total assets | 5,835,067 | 5,228,332 | |
LIABILITIES | |||
Non-interest-bearing checking | 2,405,274 | 2,454,057 | |
Interest-bearing checking | 111,587 | 67,294 | |
Savings deposits | 54,765 | 53,505 | |
Money market deposits | 51,995 | 48,758 | |
Time certificates of deposit | 276,180 | 123,637 | |
Wholesale deposits | 1,531,186 | 476,173 | |
Total deposits | 4,430,987 | 3,223,424 | |
Short-term debt | 425,759 | 1,404,534 | |
Long-term debt | 88,963 | 85,533 | |
Accrued interest payable | 7,794 | 2,280 | |
Accrued expenses and other liabilities | 133,838 | 78,065 | |
Total liabilities | 5,087,341 | 4,793,836 | |
STOCKHOLDERS’ EQUITY | |||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2018 and 2017, respectively | 0 | 0 | |
Common stock | [1] | 393 | 288 |
Additional paid-in capital | 565,811 | 258,144 | |
Retained earnings | 213,048 | 167,164 | |
Accumulated other comprehensive (loss) income | (33,111) | 9,166 | |
Treasury stock, at cost, 24,783 and 3,836 common shares at September 30, 2018 and 2017, respectively | (1,989) | (266) | |
Total equity attributable to parent | 744,152 | 434,496 | |
Non-controlling interest | 3,574 | 0 | |
Total stockholders' equity | 747,726 | 434,496 | |
Total liabilities and stockholders’ equity | 5,835,067 | 5,228,332 | |
Nonvoting Common Stock [Member] | |||
STOCKHOLDERS’ EQUITY | |||
Common stock | $ 0 | $ 0 | |
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 39,192,063 | 28,871,621 |
Common stock, shares outstanding (in shares) | 39,167,280 | 28,867,785 |
Treasury stock (in shares) | 24,783 | 3,836 |
Nonvoting Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Interest and dividend income: | ||||
Loans and leases, including fees | $ 98,475 | $ 52,117 | $ 36,187 | |
Mortgage-backed securities | 15,479 | 16,571 | 15,771 | |
Other investments | 44,580 | 39,415 | 29,438 | |
Total interest and dividend income | 158,534 | 108,103 | 81,396 | |
Interest expense: | ||||
Deposits | 15,163 | 6,051 | 614 | |
FHLB advances and other borrowings | 12,822 | 8,822 | 3,477 | |
Total interest expense | 27,985 | 14,873 | 4,091 | |
Net interest income | 130,549 | 93,230 | 77,305 | |
Provision for loan and lease losses | 29,432 | 10,589 | 4,605 | |
Net interest income after provision for loan and lease losses | 101,117 | 82,641 | 72,700 | |
Non-interest income: | ||||
Loss on sale of securities, net (Includes ($8,177), ($493), and ($326) reclassified from accumulated other comprehensive income (loss) for net losses on available for sale securities for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) | (8,177) | (493) | (326) | |
Gain on sale of loans and leases | 355 | 0 | 0 | |
Loss on foreclosed real estate | (19) | (6) | 0 | |
Other income | 1,494 | 261 | 8 | |
Total non-interest income | 184,525 | 172,172 | 100,770 | |
Non-interest expense: | ||||
Compensation and benefits | 109,044 | 88,728 | 61,675 | |
Refund transfer product expense | 11,750 | 11,885 | 8,648 | |
Tax advance product expense | 1,817 | 3,241 | 0 | |
Card processing expense | 26,283 | 24,130 | 22,263 | |
Occupancy and equipment expense | 19,740 | 16,465 | 13,999 | |
Operating lease equipment depreciation expense | 5,386 | 0 | 0 | |
Legal and consulting expense | 15,064 | 8,384 | 4,824 | |
Marketing | 1,226 | 1,449 | 1,334 | |
Data processing expense | 2,674 | 2,117 | 1,972 | |
Amortization expense | 9,641 | 12,362 | 4,828 | |
Intangible impairment | 18 | 10,248 | 0 | |
Other expense | 25,589 | 20,654 | 15,105 | |
Total non-interest expense | 228,232 | 199,663 | 134,648 | |
Income before income tax expense | 57,410 | 55,150 | 38,822 | |
Income tax expense (Includes ($2,330), ($185), and ($118) income tax benefit reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) | (5,117) | (10,233) | (5,602) | |
Net income before non-controlling interest | 52,293 | 44,917 | 33,220 | |
Net income attributable to non-controlling interest | 673 | 0 | 0 | |
Net Income attributable to parent | $ 51,620 | $ 44,917 | $ 33,220 | |
Earnings per common share: | ||||
Basic (in dollars per share) | [1] | $ 1.68 | $ 1.62 | $ 1.31 |
Diluted (in dollars per share) | [1] | $ 1.67 | $ 1.61 | $ 1.30 |
Refund transfer product fees | ||||
Non-interest income: | ||||
Non-interest income: | $ 41,879 | $ 38,956 | $ 23,347 | |
Tax advance product fees | ||||
Non-interest income: | ||||
Non-interest income: | 35,703 | 31,913 | 1,575 | |
Card fees | ||||
Non-interest income: | ||||
Non-interest income: | 94,446 | 94,707 | 70,533 | |
Rental income | ||||
Non-interest income: | ||||
Non-interest income: | 7,333 | 0 | 0 | |
Loan and lease fees | ||||
Non-interest income: | ||||
Non-interest income: | 4,470 | 3,882 | 3,374 | |
Bank-owned life insurance income | ||||
Non-interest income: | ||||
Non-interest income: | 2,590 | 2,216 | 1,656 | |
Deposit fees | ||||
Non-interest income: | ||||
Non-interest income: | $ 4,451 | $ 736 | $ 603 | |
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Non-interest income: | |||
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ (8,177) | $ (493) | $ (326) |
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) | $ (2,330) | $ (185) | $ (118) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income before noncontrolling interest | $ 52,293 | $ 44,917 | $ 33,220 |
Other comprehensive income: | |||
Change in net unrealized (loss) gain on securities | (66,053) | (21,661) | 31,965 |
Losses realized in net income | 8,177 | 493 | 326 |
Total available for sale adjustment | (57,876) | (21,168) | 32,291 |
Deferred income tax effect | (15,596) | (7,414) | 11,826 |
Unrealized gains on currency translation | 3 | 0 | 0 |
Total other comprehensive loss income | (42,277) | (13,754) | 20,465 |
Total comprehensive income | 10,016 | 31,163 | 53,685 |
Total comprehensive income attributable to non-controlling interest | 673 | 0 | 0 |
Total comprehensive income | $ 9,343 | $ 31,163 | $ 53,685 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Meta Stockholders' Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | Treasury Stock [Member] | Non-controlling Interest [Member] |
Balance at the beginning of the period at Sep. 30, 2015 | $ 271,335 | $ 271,335 | $ 245 | $ 170,586 | $ 98,359 | $ 2,455 | $ (310) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cash dividends declared on common stock | (4,389) | (4,389) | (4,389) | |||||
Issuance of common shares due to exercise of stock options | 2,357 | 2,357 | 2 | 2,045 | 310 | |||
Issuance of common shares due to acquisition | 11,501 | 11,501 | 8 | 11,493 | 0 | |||
Stock compensation | 486 | 486 | 486 | |||||
Net change in unrealized losses on securities, net of income taxes | 20,465 | 20,465 | 20,465 | |||||
Net income before noncontrolling interest | 33,220 | 33,220 | 33,220 | |||||
Balance at the end of the period at Sep. 30, 2016 | 334,975 | 334,975 | 255 | 184,610 | 127,190 | 22,920 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of Accounting Standards Update 2016-09 | 104 | (104) | ||||||
Cash dividends declared on common stock | (4,839) | (4,839) | (4,839) | |||||
Issuance of common shares due to exercise of stock options | 650 | 650 | 0 | 650 | 0 | |||
Issuance of common shares due to restricted stock | 12 | 12 | 12 | 0 | 0 | |||
Contingent consideration equity earnout due to acquisition | 24,142 | 24,142 | 24,142 | |||||
Issuance of common shares due to ESOP | 1,174 | 1,174 | 1,174 | |||||
Issuance of common shares due to acquisition | 37,296 | 37,296 | 21 | 37,275 | ||||
Shares repurchased for tax withholdings on stock compensation | (470) | (470) | (204) | (266) | ||||
Stock compensation | 10,393 | 10,393 | 10,393 | |||||
Net change in unrealized losses on securities, net of income taxes | (13,754) | (13,754) | (13,754) | |||||
Net income before noncontrolling interest | 44,917 | 44,917 | 44,917 | |||||
Balance at the end of the period at Sep. 30, 2017 | 434,496 | 434,496 | 288 | 258,144 | 167,164 | 9,166 | (266) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cash dividends declared on common stock | (5,736) | (5,736) | (5,736) | |||||
Issuance of common shares due to exercise of stock options | 148 | 148 | 1 | 147 | ||||
Issuance of common shares due to restricted stock | 4 | 4 | 4 | |||||
Issuance of common shares due to ESOP | 1,606 | 1,606 | 1 | 1,605 | ||||
Issuance of common shares due to acquisition | 295,766 | 295,766 | 99 | 295,667 | ||||
Shares repurchased for tax withholdings on stock compensation | (2,598) | (2,598) | (875) | (1,723) | ||||
Stock compensation | 11,123 | 11,123 | 11,123 | |||||
Net change in unrealized losses on securities, net of income taxes | (42,277) | (42,277) | (42,277) | |||||
Net income before noncontrolling interest | 52,293 | 51,620 | 51,620 | 673 | ||||
Non-controlling interest due to acquisition | 3,167 | 3,167 | ||||||
Distributions to non-controlling interest | (266) | (266) | ||||||
Balance at the end of the period at Sep. 30, 2018 | $ 747,726 | $ 744,152 | $ 393 | $ 565,811 | $ 213,048 | $ (33,111) | $ (1,989) | $ 3,574 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash dividends declared on common stock (in dollars per share) | $ 0.18 | $ 0.17 | $ 0.17 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net income before noncontrolling interest | $ 52,293 | $ 44,917 | $ 33,220 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion, net | 37,722 | 45,048 | 35,617 |
Stock compensation | 11,123 | 10,393 | 486 |
Provision (recovery): | |||
Loan and lease losses | 29,432 | 10,589 | 4,605 |
Deferred taxes | 6,530 | (6,286) | (230) |
Loans held for sale: | |||
Originations | (1,691) | (685,934) | 0 |
Proceeds from sales | 17,621 | 685,934 | 0 |
Net change | 952 | 0 | 0 |
Fair value adjustment of foreclosed real estate | 29 | 18 | 0 |
Net realized (gain) loss: | |||
Other assets | 127 | 406 | 104 |
Foreclosed real estate or other assets | 19 | 6 | 0 |
Available for sale securities, net | 8,177 | 537 | 326 |
Held to maturity securities, net | 0 | (44) | 0 |
Loans held for sale | (181) | 0 | 0 |
Lease receivables and equipment | (526) | 0 | 0 |
Net change: | |||
Other assets | 2,633 | (23,408) | (1,968) |
Accrued interest payable | 1,933 | 1,405 | 603 |
Accrued expenses and other liabilities | (28,610) | 30,806 | 11,237 |
Accrued interest receivable | 2,745 | (2,181) | (3,847) |
Change in bank-owned life insurance value | (2,591) | (2,216) | (1,656) |
Impairment of intangibles | 18 | 10,248 | 0 |
Excess contingent consideration paid | 0 | (248) | 0 |
Net cash provided by operating activities | 137,755 | 119,990 | 78,497 |
Available for Sale securities: | |||
Purchases | (626,575) | (848,613) | (603,995) |
Proceeds from sales | 596,758 | 457,306 | 285,508 |
Proceeds from maturities and principal repayments | 162,118 | 126,420 | 116,333 |
Held to Maturity: | |||
Purchases | 0 | (932) | (298,869) |
Proceeds from sales | 0 | 5,870 | 0 |
Proceeds from maturities and principal repayments | 40,525 | 45,615 | 20,465 |
Bank Owned Life Insurance: | |||
Purchases | 0 | (25,000) | (10,000) |
Loans and leases: | |||
Purchases | (165,670) | (141,403) | 0 |
Proceeds from sales | 22,611 | 4,720 | 89 |
Net change | (493,381) | (274,840) | (217,985) |
Proceeds from sales of foreclosed real estate or other assets | 244 | 200 | 0 |
Federal Home Loan Bank stock: | |||
Purchases | (961,124) | (715,891) | (860,902) |
Redemption | 998,880 | 702,280 | 837,800 |
Rental Equipment: | |||
Purchases | (1,848) | 0 | 0 |
Proceeds from sales | 2,362 | 0 | 0 |
Premises and equipment: | |||
Purchases | (8,542) | (6,798) | (6,979) |
Proceeds from sales | 0 | 58 | 55 |
Rental equipment operating lease originations | (15,000) | 0 | 0 |
Cash paid for acquisitions | (6) | (29,425) | 0 |
Cash received upon acquisitions | 58,858 | 0 | 0 |
Net cash used in investing activities | (389,790) | (700,433) | (738,480) |
Cash flows from financing activities: | |||
Checking, savings, and money market deposits | 7 | 319,524 | 737,727 |
Time deposits | (143,096) | (2,355) | 34,821 |
Wholesale deposits | 229,982 | 476,173 | 0 |
FHLB and other borrowings | (415,000) | 308,000 | 100,000 |
Federal funds | (565,000) | (5,000) | 452,000 |
Securities sold under agreements to repurchase | 1,222 | (565) | (969) |
Short-term borrowings | (11,642) | 0 | 0 |
Distributions to non-controlling interest | (266) | 0 | 0 |
Principal payments: Other liabilities | (4,888) | 0 | 0 |
Principal payments: Capital lease obligations | (62) | (80) | (126) |
Cash dividends paid | (5,736) | (4,839) | (4,389) |
Purchase of shares by ESOP | 1,606 | 1,174 | 0 |
Issuance of restricted stock | 4 | 12 | 0 |
Proceeds from exercise of stock options & issuance of common stock | 148 | 650 | 13,858 |
Shares repurchased for tax withholdings on stock compensation | (2,598) | (470) | 0 |
Contingent consideration - cash paid | 0 | (17,253) | 0 |
Proceeds from long term debt | 0 | 0 | 75,000 |
Redemption of long term debt | (258) | 0 | 0 |
Payment of debt issuance costs | 0 | 0 | (1,767) |
Payment of debt extinguishment costs | 0 | (772) | 0 |
Net cash (used in) provided by financing activities | (915,577) | 1,074,199 | 1,406,155 |
Effect of exchange rate changes on cash | 3 | 0 | 0 |
Net change in cash and cash equivalents | (1,167,609) | 493,756 | 746,172 |
Cash and cash equivalents at beginning of year | 1,267,586 | 773,830 | 27,658 |
Cash and cash equivalents at end of year | 99,977 | 1,267,586 | 773,830 |
Supplemental disclosure of cash flow information | |||
Interest | 33,499 | 16,278 | 3,488 |
Income taxes | 8,946 | 20,058 | 5,898 |
Franchise taxes | 160 | 187 | 98 |
Other taxes | 206 | 290 | 79 |
Transfers | |||
Loans and leases to foreclosed real estate or other assets | 30,451 | 440 | 76 |
Loans and leases to rental equipment | 9 | 0 | 0 |
Rental equipment to loans and leases | 993 | 0 | 0 |
Loans and leases to held for sale | 15,068 | 0 | 0 |
Contingent consideration - equity | 0 | 24,142 | 0 |
Stock issued for acquisitions | 295,767 | 37,296 | 0 |
Purchase/Sales of investment securities accrued, not settled Available for sale purchases | 1,430 | 0 | 0 |
Securities transferred from held-to-maturity to available-for-sale | $ 346,771 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the Consolidated Financial Statements of the Company. Through the Crestmark Acquisition, the Company acquired floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements. If an entity is not a VIE, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate. Variable Interest Entities VIEs are defined by contractual ownership or other interests that change with fluctuations in the VIE's net asset value. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. To determine whether or not a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of the Company's involvement with the VIE. Further, the Company assesses whether or not the Company is the primary beneficiary of a VIE on an ongoing basis. The Crestmark Capital Trust I qualifies as a VIE for which the Company is not the primary beneficiary. Consequently, the accounts of that entity are not consolidated in the Company’s Financial Statements. As a result of the Crestmark Acquisition, the Company acquired existing membership interests of five joint venture limited liability companies (the "LLCs"). See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. The Company holds 80% of the membership interests in each of the five LLC entities, which offer commercial lending and other financing arrangements. In connection with these LLCs, the Company exclusively provides funding for each entity's activities. The Company determined it is the primary beneficiary of all five LLCs as it has the managing power under the terms of each of the LLC operating agreements. Results of the five LLCs are reflected in the Company's September 30, 2018 Consolidated Financial Statements and are summarized below. The assets recognized as a result of consolidating the LLCs are the property of the LLCs and are not available for any other purpose. The summarized financial information for the Company’s consolidated VIEs consisted of the following: September 30, 2018 (Dollars in Thousands) Cash and cash equivalents $ 867 Loans and leases receivable 131,197 Allowance for loan and lease losses (145 ) Accrued interest receivable 887 Rental equipment 99 Foreclosed real estate and repossessed assets 1,626 Other assets 3,247 Total assets 137,778 Accrued expenses and other liabilities 2,386 Non-controlling interest 3,574 Net assets less non-controlling interest 131,818 Amounts for non-controlling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interest in the following entities: • Capital Equipment Solutions, LLC (“CES”) - CES was organized to engage in the business of providing equipment financing term loans. • CM Help, LLC - CM Help was organized to provide flexible patient loan programs to hospitals and patient clients of hospitals as a financing alternative for the self-pay and co-pay portions of patients’ hospital expenses. • CM Southgate II, LLC - CM Southgate II was organized to engage in the business of acquiring fleet leases and semi-trailer/tractor loans and leases. • CM Sterling, LLC - CM Sterling was organized to engage in asset-based lending and factoring. • CM TFS, LLC - CM TFS was organized to engage in the business of acquiring equipment financing term loans and leases. NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of revenue relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans and community banking loans. The Company accepts deposits from customers in the normal course of business through its community bank division and on a national basis through its MPS and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. See Note 16 Segment Reporting for additional information on the Company's segment reporting. USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the valuation of residual values within lease receivables, allowance for loan and lease losses, the valuation of foreclosed real estate and repossessed assets, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was $16.5 million at September 30, 2018 , and $1.5 million at September 30, 2017. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2018 , the Company had $16.0 million interest-bearing deposits held at the FHLB and $4.2 million in interest-bearing deposits held at the FRB. At September 30, 2018 , the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. SECURITIES GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2018 or 2017. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset/liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2018 , 2017 and 2016 , there was no other-than-temporary impairment recorded. LOANS HELD FOR SALE LHFS include commercial loans originated under the guidelines of the SBA or USDA. LHFS are held at the lower of cost or fair value. Generally, LHFS are valued on an aggregate portfolio basis. Any amount by which the cost exceeds fair value is initially recorded as a valuation allowance and subsequently reflected in the gain or loss on sale when sold. Gains and losses on LHFS are recorded in non-interest income on the Consolidated Statement of Operations. Loan costs and fees are deferred at origination and are recognized in income at the time of sale. Interest income is calculated based on the note rate of the loan and is recorded as interest income. LOANS AND LEASES RECEIVABLE LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company generally places Community Banking loans on nonaccrual status when: the full and timely collection of interest or principal becomes uncertain; they are 90 days past due for interest or principal, unless they are both well-secured and in the process of collection; or part of the principal balance has been charged off. The majority of the Company's National Lending loans follow the same nonaccrual policy as Community Banking loans with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due. The Company generally considers a loan to be impaired when, based on current information and events, it determines that it will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company's impaired loans predominantly include loans on nonaccrual status in the Banking segment and loans modified in a troubled-debt-restructuring, whether on accrual or nonaccrual status. The Company measures the amount of impairment, if any, based on the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loans effective interest rate. When collateral is the sole source of repayment for the impaired loan, the Company charges down to net realizable value. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. LEASES RECEIVABLE The Company provides various types of commercial lease financing that are classified for accounting purposes as direct financing, sales-type or operating leases. Leases that transfer substantially all of the benefits and risks of ownership to the lessee are classified as direct financing or sales-type leases and are included in loans and leases receivable on the Consolidated Statements of Financial Condition. Direct financing and sales-type leases are carried at the combined present value of future minimum lease payments and lease residual values. The determination of lease classification requires various judgments and estimates by management, including the fair value of equipment at lease inception, useful life of the equipment under lease, lease residual value, and collectability of minimum lease payments. Sales-type leases generate dealer profit, which is recognized at lease inception by recording lease revenue net of lease cost. Lease revenue consists of the present value of the future minimum lease payments. Lease cost consists of the lease equipment’s book value, less the present value of its residual. Interest income on direct financing and sales-type leases is recognized using methods that approximate a level yield over the fixed, non-cancelable term of the lease. Recognition of interest income is generally discontinued at the time the lease becomes 90 days delinquent, unless the lease is well-secured and in process of collection. Delinquency and past due status is based on the contractual terms of the lease. The Company receives pro rata rent payments for the interim period until the lease contract commences and the fixed, non-cancelable lease term begins. Interim payments are recognized in the month they are earned and are recorded in interest income. Management has policies and procedures in place for the determination of lease classification and review of the related judgments and estimates for all lease financings. The Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for leases when: management judges the lease to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the lease has been classified as a loss by either the Company's internal review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the lease meets a defined number of days past due unless the lease is both well-secured and in the process of collection. Some lease financings include a residual value component, which represents the estimated fair value of the leased equipment at the expiration of the initial term of the transaction. The estimation of the residual value involves judgments regarding product and technology changes, customer behavior, shifts in supply and demand, and other economic assumptions. The Company reviews residual assumptions at least annually and records impairment, if necessary, which is charged to non-interest expense in the period it becomes known. The Company may purchase and sell minimum lease payments, primarily as a credit risk reduction tool, to third-party financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral. For those transactions that achieve sale treatment, the related lease cash flow stream and the non-recourse financing are derecognized. For those transactions that do not achieve sale treatment, the underlying lease remains on the Company’s Consolidated Statements of Financial Condition and non-recourse debt is recorded in the amount of the proceeds received. The Company retains servicing of these leases and bills, collects, and remits funds to the third-party financial institution. Upon default by the lessee, the third-party financial institutions may take control of the underlying collateral which the Company would otherwise retain as residual value. Leases that do not transfer substantially all benefits and risks of ownership to the lessee are classified as operating leases. Such leased equipment and related initial direct costs are included in Rental Equipment on the Consolidated Statements of Financial Condition and are depreciated on a straight-line basis over the term of the lease to its estimated residual value. Depreciation expense is recorded as Operating Lease Equipment Depreciation Expense within non-interest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of non-interest income. An allowance for lease losses is not provided on operating leases. MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, generally without recourse. Sold loans are not included in the Consolidated Financial Statements. The Bank generally retains the right to service the sold loans for a fee and records a servicing asset, which is included within Other Assets on the Consolidated Statements of Financial Condition. At September 30, 2018 and 2017, the Bank was servicing loans for others with aggregate unpaid principal balances of $ 134.0 million and $ 21.8 million, respectively. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. ALLOWANCE FOR LOAN AND LEASE LOSSES The allowance for loan and lease losses ("ALLL") represents management’s estimate of probable loan and lease losses that have been incurred as of the date of the Consolidated Financial Statements. The ALLL is increased by a provision for loan and lease losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan or lease is necessarily subjective. Management’s periodic evaluation of the appropriateness of the ALLL is based on the Company’s and peer group’s past loan and lease loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the ALLL for specific problem loan or lease situations, the entire ALLL is available for any loan or lease charge-offs that occur. The ALLL consists of specific and general components. The specific component of the ALLL relates to impaired loans and leases. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Leases are generally considered impaired if collectability of the remaining minimum lease payments becomes uncertain. Often this is associated with a delay or shortfall in payments of 90 days or more for community banking loans and leases. Non-accrual loans and leases and all TDRs are considered impaired. Impaired loans and leases, or portions thereof, are charged off when deemed uncollectible. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general reserve covers Community Bank and Crestmark division loans and leases not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and leases and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2018 and 2017 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). • The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. • A three to seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors. • The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve in the Company's Community Bank portfolio. Qualitative adjustment considerations for the general reserve include considerations of changes in lending and leasing policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan and lease portfolio, changes in lending and leasing management and staff, trending in past due, classified, nonaccrual, and other loan and lease categories, changes in the Company’s loan and lease review system and oversight, changes in collateral and residual values, credit concentration risk, and the regulatory and legal requirements and environment. National Lending portfolios, outside of loans and leases attributable to the Crestmark division, primarily utilize a general reserve process that mostly uses historical factors related to the specific loan and lease portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for commercial insurance premium finance loans, 180 days for tax and other specialty lending loans, 120 days for consumer credit products and 90 days for other loans. See Note 3. Loans and Leases Receivable, Net for further information on the ALLL. FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. The fair value of the real estate owned is based on independent appraisals, real estate brokers’ price opinions, or automated valuation methods, less costs to sell. The fair value of repossessed assets is based on available pricing guides, auction results or price opinions, less costs to sell. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan and lease losses. Subsequent valuations are periodically performed by management. If the subsequent fair value, less costs to sell, declines to less than the carrying amount of the asset, the shortfall is recognized in the period it becomes known as an impairment in non-interest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in non-interest expense. INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS CRESTMARK BANCORP, INC On August 1, 2018, the Company completed the Crestmark Acquisition. Crestmark previously provided business-to-business commercial financing. With this acquisition, the Company acquired all assets and assumed all liabilities of Crestmark at a purchase price of $295.8 million paid in stock. The aggregate value of the acquisition was based upon the issuance of 9,919,512 shares of Meta common stock and the closing price of Meta shares on July 31, 2018 of $29.82 . The Company recorded goodwill of $204.5 million associated with the acquisition. Goodwill resulted from expected operational synergies and expanded product lines. See Note 20 to the Consolidated Financial Statements for further information on goodwill. The Company has included the financial results of Crestmark in its Consolidated Financial Statements as of the acquisition date. The Crestmark Acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for the acquired assets and liabilities. The Company recognized $9.0 million in transaction-related expenses during fiscal 2018. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting. The following table represents the approximate fair value of the assets acquired and liabilities assumed of Crestmark on the Consolidated Statements of Financial Condition as of August 1, 2018: As of August 1, 2018 (Dollars in Thousands) Fair value of consideration paid Cash paid $ 6 Stock issued 295,767 Total consideration paid 295,773 Fair value of assets acquired Cash and cash equivalents 58,858 Investment & MBS securities 25,349 Loan and lease receivables held for sale 17,494 Loan and lease receivables held for investment 1,046,010 Federal Home Loan Bank stock, at cost 33 Accrued interest receivable 5,381 Premises, furniture, and equipment 18,458 Rental equipment 98,977 Foreclosed real estate and repossessed assets 1,209 Intangible assets 28,253 Other assets 22,170 Total assets 1,322,192 Fair value of liabilities assumed Time certificates of deposits 295,590 Wholesale certificates of deposits 825,076 Total deposits 1,120,666 Short-term debt 11,642 Long-term debt 3,609 Accrued interest payable 3,581 Accrued expenses and other liabilities 88,301 Total liabilities assumed 1,227,799 Fair value of non-controlling interest assumed Non-controlling interest 3,167 Total non-controlling interest 3,167 Fair value of net assets acquired 91,226 Goodwill resulting from acquisition 204,547 Crestmark was consolidated into the Company's Consolidated Financial Statements starting on August 1, 2018. The aggregate net interest income and net income of Crestmark consolidated into the Company's financial statements since the date of acquisition was $19.1 million and $9.7 million , respectively, for the year ended September 30, 2018. The following financial information presents the Company's results as if the Crestmark Acquisition on August 1, 2018 had occurred on October 1, 2016: Twelve Months Ended September 30, (Dollars in Thousands Except Share and Per Share Data) 2018 2017 Net interest income $ 206,822 $ 181,184 Net income attributable to parent 74,640 64,390 Basic earnings per share 1.91 1.71 Diluted earnings per share 1.91 1.70 These pro forma results are based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the Crestmark Acquisition actually occurred on October 1, 2016 and are not necessarily indicative of the Company's Consolidated Statements of Operations in future periods. The pro forma results include adjustments related to purchase accounting, primarily related to amortization of intangibles created and accretion of loan discount. SCS On December 14, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and specified liabilities of Specialty Consumer Services LP ("SCS"). The assets acquired by MetaBank in the SCS acquisition include the SCS trade name, propriety underwriting model and loan management system and other assets. SCS primarily provides consumer tax advance and other consumer credit services through its loan management services and other financial products. Under the terms of the purchase agreement, the aggregate purchase price paid at closing, which was based upon the December 14, 2016 tangible book value of SCS, was approximately $7.5 million in cash and the issuance of 339,984 shares of Meta common stock. In addition, contingent cash consideration of $17.5 million was paid out in the third quarter of fiscal 2017 and equity contingent consideration of 793,293 shares of Meta common stock was paid in the fourth quarter of fiscal 2017 following the achievement of specified performance benchmarks (described more fully below). The Company acquired assets with approximate fair values of $28.3 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and negligible other assets, resulting in goodwill of $31.4 million . Subject to the equity earn-out terms of the purchase agreement, SCS was eligible to receive up to an aggregate of 793,293 shares of Meta common stock within 20 days after the applicable equity earn-out statement was deemed final if certain targets achieved. The equity earn-out measurements were as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit met or exceeded the statement amount, MetaBank would deliver to SCS a stated number of shares of Meta common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts was greater than or equal to the agreed upon volume amount, then MetaBank would deliver to SCS a stated number of shares of Meta common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract was in effect and none of such agreements was amended or modified as of such time (except as approved in writing by the President of MetaBank, in his or her sole discretion), then MetaBank would deliver to SCS a stated number of shares of Meta l common stock. None of the equity earn-out payments was contingent on the achievement of any of the other equity earn-out targets. Upon the determined equity earn-out measurement date, MetaBank determined that each of the three earn-out measurement targets was achieved and the Company issued an aggregate of 793,293 shares of Meta common stock in the fourth quarter of fiscal 2017. Subject to the cash earn-out terms of the purchase agreement, MetaBank agreed to pay to SCS an amount equal to 100% of the 2017 measured business gross profit up to a maximum of $17.5 million within 20 days after the date on which each determination of the cash earn-out payment was deemed final. During the third quarter of fiscal 2017, MetaBank paid out the $17.5 million of contingent cash consideration to SCS based upon the measured business gross profit. The Company has included the financial results of SCS in its Consolidated Financial Statements subsequent to the acquisition date. The fair value of the liability for the cash contingent consideration was approximately $17.3 million and was included in other liabilities in the Company's Consolidated Statements of Financial Condition. The fair value of the equity contingent consideration was approximately $24.1 million at closing and was included in additional paid-in capital in the Company's Consolidated Statements of Financial Condition. The respective fair values of the liability and equity were estimated using an option-based income valuation method with significant inputs that were not observable in the market and thus represent a Level 3 fair value measurement as defined in the FASB's Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures . The significant inputs in the Level 3 measurement not supported by market activity included the Company's probability assessments of the expected future cash flows related to the Company's acquisition of SCS during the earn-out period. The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the Consolidated Statements of Financial Condition as of December 14, 2016. As of December 14, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 7,548 Stock issued 10,789 Paid Consideration 18,337 Contingent consideration - cash 17,252 Contingent consideration - equity 24,142 Contingent consideration payable 41,394 Total consideration paid 59,731 Fair value of assets acquired Intangible assets 28,310 Other assets 2 Total assets 28,312 Fair value of net assets acquired 28,312 Goodwill resulting from acquisition $ 31,419 The SCS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. Upon receipt of final fair value estimates on certain assets, liabilities, and contingent considerations, which must be within one year of the acquisition date, the Company made final adjustments to the purchase price allocation and retrospectively adjusted the recorded goodwill. The Company recognized goodwill of $31.4 million as of December 14, 2016, which was calculated as the excess of both the adjusted consideration exchanged and the liabilities recorded as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill. The Company recognized $0.8 million of pre-tax transaction related expenses during the fiscal year ended 2017. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting. EPS FINANCIAL On November 1, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC ("EPS") from privately-held Drake Enterprises, Ltd. ("Drake"). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 ERO's nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services. Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the November 1, 2016 tangible book value of EPS, included the payment of $21.9 million in cash, after adjustments, and the issuance of 1,107,537 shares of Meta common stock. The Company acquired assets with approximate fair values of $17.9 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and $0.1 million of other assets, resulting in $30.4 million of goodwill. The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the Consolidated Statements of Financial Condition as of November 1, 2016: As of November 1, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 21,877 Stock issued 26,507 Total consideration paid 48,384 Fair value of assets acquired Intangible assets 17,930 Other assets 79 Total assets 18,009 Fair value of net assets acquired 18,009 Goodwill resulting from acquisition $ 30,375 The Company has included the financial results of EPS in its Consolidated Financial Statements subsequent to the acquisition date. The EPS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. The Company recognized goodwill of $30.4 million as of November 1, 2016, which is calculated as the excess of both the consideration exchanged and the liabilities assumed, which were negligible, as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill. The Company recognized $0.5 million of pre-tax transaction-related expenses during fiscal 2017. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting. |
LOANS AND LEASES RECEIVABLE, NE
LOANS AND LEASES RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND LEASES RECEIVABLE, NET | LOANS AND LEASES RECEIVABLE, NET Loans and Leases Year-end loans and leases receivable were as follows: September 30, 2018 September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 1,509,849 $ 255,308 Consumer finance 335,361 140,229 Tax services 1,073 192 Total National Lending 1,846,283 395,729 Community Banking Commercial and multi-family real estate 748,579 585,510 1-4 family real estate 223,482 196,706 Agricultural 60,498 95,394 Commercial operating 42,311 30,718 Consumer 23,836 22,775 Total Community Banking 1,098,706 931,103 Total gross loans and leases receivable 2,944,989 1,326,832 Allowance for loan and lease losses (13,040 ) (7,534 ) Net deferred loan origination fees (250 ) (1,461 ) Total loans and leases receivable, net $ 2,931,699 $ 1,317,837 Annual activity in the allowance for loan and lease losses was as follows: Year ended September 30, 2018 2017 2016 (Dollars in Thousands) Beginning balance $ 7,534 $ 5,635 $ 6,255 Provision for loan and lease losses 29,433 10,589 4,605 Recoveries 2,037 307 147 Charge offs (25,964 ) (8,997 ) (5,372 ) Ending balance $ 13,040 $ 7,534 $ 5,635 Allowance for loan and lease losses and recorded investment in loans and leases at September 30, 2018 and 2017 were as follows: Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 800 $ 1,976 $ (2,643 ) $ 1,169 $ 1,302 Consumer finance — 5,113 (1,443 ) — 3,670 Tax services 5 21,344 (21,802 ) 453 — Total National Lending 805 28,433 (25,888 ) 1,622 4,972 Community Banking Commercial and multi-family real estate 2,670 3,377 — — 6,047 1-4 family real estate 803 (168 ) (45 ) — 590 Agricultural 2,574 (1,769 ) — 411 1,216 Commercial operating 150 23 — — 173 Consumer 6 64 (31 ) 3 42 Total Community Banking 6,203 1,527 (76 ) 414 8,068 Unallocated 527 (527 ) — — — Total 7,534 29,433 (25,964 ) 2,037 13,040 Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 589 $ 776 $ (626 ) $ 61 $ 800 Consumer finance — — — — — Tax services 6 7,612 (7,842 ) 229 5 Total National Lending 595 8,388 (8,468 ) 290 805 Community Banking Commercial and multi-family real estate 2,198 610 (138 ) — 2,670 1-4 family real estate 654 149 — — 803 Agricultural 1,474 1,088 — 12 2,574 Commercial operating 110 425 (390 ) 5 150 Consumer 51 (44 ) (1 ) — 6 Total Community Banking 4,487 2,228 (529 ) 17 6,203 Unallocated 553 (26 ) — — 527 Total 5,635 10,589 (8,997 ) 307 7,534 Allowance Loans and Leases Recorded Investment Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 588 $ 714 $ 1,302 $ 13,612 $ 1,496,237 $ 1,509,849 Consumer finance — 3,670 3,670 — 335,361 335,361 Tax services — — — — 1,073 1,073 Total National Lending 588 4,384 4,972 13,612 1,832,671 1,846,283 Community Banking Commercial and multi-family real estate — 6,047 6,047 405 748,174 748,579 1-4 family real estate — 590 590 94 223,388 223,482 Agricultural — 1,216 1,216 1,454 59,044 60,498 Commercial operating — 173 173 46 42,265 42,311 Consumer — 42 42 — 23,836 23,836 Total Community Banking — 8,068 8,068 1,999 1,096,707 1,098,706 Total 588 12,452 13,040 15,611 2,929,378 2,944,989 Allowance Loans and Leases Recorded Investment Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ — $ 800 $ 800 $ — $ 255,308 $ 255,308 Consumer finance — — — — 140,229 140,229 Tax services — 5 5 — 192 192 Total National Lending — 805 805 — 395,729 395,729 Community Banking Commercial and multi-family real estate — 2,670 2,670 1,109 584,401 585,510 1-4 family real estate — 803 803 72 196,634 196,706 Agricultural — 2,574 2,574 — 95,394 95,394 Commercial operating — 150 150 — 30,718 30,718 Consumer — 6 6 — 22,775 22,775 Total Community Banking — 6,203 6,203 — 931,103 931,103 Unallocated — 527 527 — — — Total — 7,534 7,534 1,181 1,325,651 1,326,832 The asset classification of loans and leases at September 30, 2018 , and 2017 , were as follows: Asset Classification Pass Watch Special Mention Substandard Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 1,379,902 $ — $ 116,334 $ 13,613 1,509,849 Consumer finance 335,361 — — — 335,361 Tax services 1,073 — — — 1,073 Total National Lending 1,716,336 — 116,334 13,613 1,846,283 Community Banking Commercial and multi-family real estate 736,134 12,251 194 — 748,579 1-4 family real estate 222,883 281 239 79 223,482 Agricultural 42,292 2,447 4,872 10,887 60,498 Commercial operating 42,311 — — — 42,311 Consumer 23,580 256 — — 23,836 Total Community Banking 1,067,200 15,235 5,305 10,966 1,098,706 Total Loans and Leases $ 2,783,536 $ 15,235 $ 121,639 $ 24,579 $ 2,944,989 Asset Classification Pass Watch Special Mention Substandard Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 255,308 $ — $ — $ — 255,308 Consumer finance 140,229 — — — 140,229 Tax services 192 — — — 192 Total National Lending 395,729 — — — 395,729 Community Banking Commercial and multi-family real estate 574,730 10,200 201 379 585,510 1-4 family real estate 195,838 525 247 96 196,706 Agricultural 45,770 6,547 2,939 40,138 95,394 Commercial operating 30,718 — — — 30,718 Consumer 22,775 — — — 22,775 Total Community Banking 869,831 17,272 3,387 40,613 931,103 Total Loans and Leases $ 1,265,560 $ 17,272 $ 3,387 $ 40,613 $ 1,326,832 Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows: Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating. Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. The adverse classifications are as follows: Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate. Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. Loans and leases, or portions thereof, are charged off when collection of principal becomes doubtful. Generally, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 180 days or more for the purchased student loan portfolios, 120 days or more for consumer credit products and leases, and 90 days or more for community banking loans and commercial finance loans. Action is taken to charge off ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired. Past due loans and leases at September 30, 2018 and 2017 were as follows : Accruing and Non-accruing Loans and Leases Non-performing Loans and Leases Past Due Loans and Leases 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Non-accrual balance Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance 20,708 3,702 5,996 30,406 1,479,443 1,509,849 3,801 2,864 6,665 Consumer finance 3,209 1,595 2,384 7,188 328,173 335,361 2,384 — 2,384 Tax services — — 1,073 1,073 — 1,073 1,073 — 1,073 Total National Lending 23,917 5,297 9,453 38,667 1,807,616 1,846,283 7,258 2,864 10,122 Community Banking Commercial and multi-family real estate — — — — 748,579 748,579 — — — 1-4 family real estate 105 — 79 184 223,298 223,482 79 — 79 Agricultural — — — — 60,498 60,498 — — — Commercial operating — — — — 42,311 42,311 — — — Consumer — — — — 23,836 23,836 — — — Total Community Banking 105 — 79 184 1,098,522 1,098,706 79 — 79 Total Loans and Leases 24,022 5,297 9,532 38,851 2,906,138 2,944,989 7,337 2,864 10,201 Accruing and Non-accruing Loans and Leases Non-performing Loans and Leases Past Due Loans and Leases 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Non-accrual balance Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 1,509 $ 2,442 $ 1,205 $ 5,156 $ 250,152 $ 255,308 $ 1,205 $ — $ 1,205 Consumer finance 2,503 541 1,387 4,431 135,798 140,229 1,387 — 1,387 Tax services — — — — 192 192 — — — Total National Lending 4,012 2,983 2,592 9,587 386,142 395,729 2,592 — 2,592 Community Banking Commercial and multi-family real estate 295 — 390 685 584,825 585,510 — 685 685 1-4 family real estate 370 79 — 449 196,257 196,706 — — — Agricultural — — 34,295 34,295 61,099 95,394 34,295 — 34,295 Commercial operating — — — — 30,718 30,718 — — — Consumer 9 17 19 45 22,730 22,775 19 — 19 Total Community Banking 674 96 34,704 35,474 895,629 931,103 34,314 685 34,999 Total Loans and Leases $ 4,686 $ 3,079 $ 37,296 $ 45,061 $ 1,281,771 $ 1,326,832 $ 36,906 $ 685 $ 37,591 Non-accruing loans and leases were $2.9 million and $0.7 million at September 30, 2018 and 2017 , respectively. There were $7.3 million and $36.9 million in accruing loans and leases delinquent 90 days or more at September 30, 2018 and 2017 , respectively. For the year ended September 30, 2018 , gross interest income which would have been recorded had the non-accruing loans and leases been current in accordance with their original terms amounted to approximately $0.1 million , none of which was included in interest income. When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often, this is associated with a delay or shortfall in scheduled payments, as described above. Impaired loans and leases at September 30, 2018 and 2017 were as follows: September 30, 2018 Recorded Balance Unpaid Principal Balance Specific Allowance Loans and leases without a specific valuation allowance (Dollars in Thousands) National Lending Commercial finance $ 8,199 $ 8,529 $ — Total National Lending 8,199 8,529 — Community Banking Commercial and multi-family real estate 405 405 — 1-4 family real estate 94 94 — Agricultural 1,454 1,454 — Consumer 46 46 — Total Community Banking 1,999 1,999 — Total 10,198 10,528 — Loans and leases with a specific valuation allowance National Lending Commercial finance $ 5,413 $ 5,663 $ 588 Total National Lending 5,413 5,663 588 Total 5,413 5,413 588 September 30, 2017 Recorded Balance Unpaid Principal Balance Specific Allowance Loans and leases without a specific valuation allowance (Dollars in Thousands) Community Banking Commercial and multi-family real estate $ 1,109 $ 1,109 $ — 1-4 family real estate 72 72 — Total Community Banking 1,181 1,181 — Total $ 1,181 $ 1,181 $ — Loans and leases with a specific valuation allowance Total $ — $ — $ — Cash interest collected on impaired loans and leases was not material during the years ended September 30, 2018 and 2017 . The following table provides the average recorded investment in impaired loans and leases for the years ended September 30, 2018 and 2017 . Year Ended September 30, 2018 2017 Average Recorded Investment Average Recorded Investment (Dollars in Thousands) National Lending Commercial finance $ 1,134 $ — Total National Lending 1,134 — Community Banking Commercial and multi-family real estate 673 883 1-4 family real estate 159 176 Agricultural 1,652 414 Commercial operating — 202 Consumer 67 — Total Community Banking 2,551 1,675 Total loans and leases 3,685 1,675 For economic or legal reasons relating to a borrower’s financial difficulties, the Company may grant to a borrower a concession for other than an insignificant period of time that the Company would not otherwise grant. The Company classifies these related loans and leases as troubled debt restructurings (“TDR”) which may involve forgiving a portion of interest or principal on existing loans or leases, making loans or leases at a rate materially less than current market rates, or extending the term of the loan or lease. For the year ended September 30, 2018 , the Company had 10 Community Banking loans with a balance of $2.0 million , and 11 National Lending loans and leases, with a balance of $2.5 million classified as TDRs. For the year ended September 30, 2017 , the Company had four Community Banking loans, with a balance of $0.5 million classified as TDRs. All of the TDRs that were modified during the year ended September 30, 2018 were modified to extend the term of the loan. During the year ended September 30, 2018 , the Company had one Community Banking loan with a balance of $0.1 million that was modified in a TDR within the previous 12 months and for which there was a payment default. For the year ended September 30, 2017 , there were no TDR loans for which there was a payment default. The Company had no commitments to lend additional funds on loans or leases with terms modified in a TDR at September 30, 2018 and 2017 . |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at fiscal year-end were as follows: September 30, 2018 2017 2016 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 2,338 $ 3,162 $ 3,980 SBA/USDA 98,942 — — Other 32,726 18,649 15,452 $ 134,006 $ 21,811 $ 19,432 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE EPS is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the EPS calculation. Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in the EPS calculations. On October 5, 2018, Meta common stock began trading on a split-adjusted basis as a result of the 3 -for-1 forward stock split with respect to Meta's common stock, which was effected on October 4, 2018. As a result of the stock split, the number of issued and outstanding shares of Meta common stock increased to 39.2 million shares, which includes shares issued pursuant to the Crestmark Acquisition. A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2018 , 2017 and 2016 is presented below. All share and per share data reported for all periods presented in the table below has been adjusted to reflect the 3-for-1 forward stock split. 2018 2017 2016 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 51,620 $ 44,917 $ 33,220 Weighted average common shares outstanding 30,737,499 27,741,276 25,331,868 Basic income per common share $ 1.68 $ 1.62 $ 1.31 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 51,620 $ 44,917 $ 33,220 Weighted average common shares outstanding 30,737,499 27,741,276 25,331,868 Outstanding options - based upon the two-class method 115,551 166,956 160,170 Weighted average diluted common shares outstanding 30,853,050 27,908,232 25,492,038 Diluted income per common share $ 1.67 $ 1.61 $ 1.30 All stock options were considered in computing diluted EPS for the years ended September 30, 2018, 2017, and 2016. |
SECURITIES
SECURITIES | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES During the first quarter of fiscal 2018, the Company early adopted Accounting Standard Update ("ASU") 2017-12, " Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. " Due to the early adoption of the ASU, the Company transferred $204.7 million of investment securities and $101.3 million of MBS from HTM to AFS during the first quarter of fiscal 2018. In connection with the Crestmark Acquisition, the Company transferred $40.9 million of investment securities from HTM to AFS during the fourth quarter of fiscal 2018, as allowed through ASC 320-10-25-6(c), which allows for the transfer of securities from HTM in the event of a major business combination. Securities available for sale at September 30, 2018 and 2017 were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 45,591 $ 1 $ (1,255 ) $ 44,337 Obligation of states and political subdivisions 17,154 49 (293 ) 16,910 Non-bank qualified obligations of states and political subdivisions 1,140,884 826 (31,825 ) 1,109,885 Asset-backed securities 310,700 2,585 (257 ) 313,028 Mortgage-backed securities 378,301 — (14,236 ) 364,065 Total debt securities 1,892,630 3,461 (47,866 ) 1,848,225 Common equities and mutual funds 3,172 635 (7 ) 3,800 Total available for sale securities $ 1,895,802 $ 4,096 $ (47,873 ) $ 1,852,025 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 57,046 $ 825 $ — $ 57,871 Non-bank qualified obligations of states and political subdivisions 938,883 14,983 (3,037 ) 950,829 Asset-backed securities 94,451 2,381 — 96,832 Mortgage-backed securities 588,918 1,259 (3,723 ) 586,454 Total debt securities 1,679,298 19,448 (6,760 ) 1,691,986 Common equities and mutual funds 1,009 436 — 1,445 Total available for sale securities $ 1,680,307 $ 19,884 $ (6,760 ) $ 1,693,431 Securities held to maturity at September 30, 2018 and 2017 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 164,304 $ — $ (10,758 ) $ 153,546 Mortgage-backed securities 7,850 — (422 ) 7,428 Total held to maturity securities $ 172,154 $ (11,180 ) $ 160,974 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,247 $ 157 $ (36 ) $ 19,368 Non-bank qualified obligations of states and political subdivisions 430,593 4,744 (2,976 ) 432,361 Mortgage-backed securities 113,689 — (1,233 ) 112,456 Total held to maturity securities $ 563,529 $ 4,901 $ (4,245 ) $ 564,185 Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary. This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows. Management also determines whether the Company intends to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity. To the extent the Company determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: available for sale, held to maturity or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income. HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not have any trading securities at September 30, 2018. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2018 , and 2017 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2018 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Small business administration securities $ 43,097 $ (1,255 ) $ — $ — $ 43,097 $ (1,255 ) Obligations of states and political subdivisions 11,036 (279 ) 881 (14 ) 11,917 (293 ) Non-bank qualified obligations of states and political subdivisions 626,693 (13,539 ) 358,095 (18,286 ) 984,788 (31,825 ) Asset-backed securities 146,638 (257 ) — — 146,638 (257 ) Mortgage-backed securities 121,217 (3,292 ) 242,849 (10,944 ) 364,066 (14,236 ) Total debt securities 948,681 (18,622 ) 601,825 (29,244 ) 1,550,506 (47,866 ) Common equities and mutual funds 1,818 (7 ) — — 1,818 (7 ) Total available for sale securities $ 950,499 $ (18,629 ) $ 601,825 $ (29,244 ) $ 1,552,324 $ (47,873 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 280,900 $ (2,887 ) $ 5,853 $ (150 ) $ 286,753 $ (3,037 ) Mortgage-backed securities 237,897 (1,625 ) 100,287 (2,098 ) 338,184 (3,723 ) Total available for sale securities $ 518,797 $ (4,512 ) $ 106,140 $ (2,248 ) $ 624,937 $ (6,760 ) Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2018 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 6,178 $ (287 ) $ 147,368 $ (10,471 ) $ 153,546 $ (10,758 ) Mortgage-backed securities — — 7,428 (422 ) 7,428 (422 ) Total held to maturity securities 6,178 (287 ) 154,796 (10,893 ) 160,974 (11,180 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,364 $ (6 ) $ 4,089 $ (30 ) $ 5,453 $ (36 ) Non-bank qualified obligations of states and political subdivisions 202,018 (2,783 ) 6,206 (193 ) 208,224 (2,976 ) Mortgage-backed securities 112,456 (1,233 ) — — 112,456 (1,233 ) Total held to maturity securities $ 315,838 $ (4,022 ) $ 10,295 $ (223 ) $ 326,133 $ (4,245 ) As of September 30, 2018 and 2017 , the investment portfolio included securities with current unrealized losses which have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell), and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2018 or 2017 . The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2018 (Dollars in Thousands) Due in one year or less $ 2,532 $ 2,529 Due after one year through five years 41,415 41,504 Due after five years through ten years 352,099 350,143 Due after ten years 1,118,283 1,089,984 1,514,329 1,484,160 Mortgage-backed securities 378,301 364,065 Common equities and mutual funds 3,172 3,800 Total available for sale securities $ 1,895,802 $ 1,852,025 AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 36,586 37,674 Due after five years through ten years 347,831 358,198 Due after ten years 705,963 709,660 1,090,380 1,105,532 Mortgage-backed securities 588,918 586,454 Common equities and mutual funds 1,009 1,445 Total available for sale securities $ 1,680,307 $ 1,693,431 Held To Maturity AMORTIZED COST FAIR VALUE At September 30, 2018 (Dollars in Thousands) Due after ten years 164,304 153,546 164,304 153,546 Mortgage-backed securities 7,850 7,428 Total held to maturity securities $ 172,154 $ 160,974 AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ 1,483 $ 1,480 Due after one year through five years 17,926 18,160 Due after five years through ten years 144,996 147,832 Due after ten years 285,435 284,257 449,840 451,729 Mortgage-backed securities 113,689 112,456 Total held to maturity securities $ 563,529 $ 564,185 Activities related to the sale of securities are summarized below. 2018 2017 2016 Year ended (Dollars in Thousands) Available For Sale Proceeds from sales $ 596,758 $ 457,306 $ 285,508 Gross gains on sales 2,551 4,091 1,459 Gross losses on sales 10,728 4,628 1,785 Net loss on available for sale securities (8,177 ) (537 ) (326 ) Held To Maturity Net carrying amount of securities sold $ — $ 5,826 $ — Gross realized gain on sales — 92 — Gross realized losses on sales — 48 — Net gain on held to maturity securities — 44 — During the fiscal 2018 fourth quarter, the Company completed a balance sheet restructuring related to the closing of the Crestmark Acquisition, selling approximately $260 million of lower-yielding AFS securities. Securities with fair values of approximately $8.0 million and $ 5.7 million at September 30, 2018 and 2017 , respectively, were pledged as collateral for public funds on deposit. Securities with fair values of approximately $ 5.9 million and $ 3.8 million at September 30, 2018 , and 2017 , respectively, were pledged as collateral for individual, trust and estate deposits. Federal Home Loan Bank ("FHLB") Stock The Company’s borrowings from the FHLB are secured by a blanket collateral agreement with respect to a percentage of unencumbered loans and the pledge of specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities. The investments in the FHLB stock are required investments related to the Company’s membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLBs and actions of their regulator, the Federal Housing Finance Agency. The Company periodically evaluates investments for other than temporary impairment. There was no impairment of this investment in 2018 , 2017 or 2016 . The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $23.4 million and $61.1 million at September 30, 2018 and 2017 , respectively. At fiscal year-end 2018 and 2017, the Company pledged securities with fair values of approximately $1.06 billion and $1.07 billion , respectively, against specific FHLB advances. In addition, a combination of qualifying residential and other real estate loans of approximately $756.0 million and $628.0 million were pledged as collateral at September 30, 2018 and 2017 , respectively. Included in Interest and Dividend Income from other investments is $1.1 million , $0.5 million and $0.6 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. |
PREMISES, FURNITURE, AND EQUIPM
PREMISES, FURNITURE, AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, FURNITURE, AND EQUIPMENT, NET | PREMISES, FURNITURE AND EQUIPMENT, NET Year-end premises and equipment were as follows: September 30, 2018 2017 (Dollars in Thousands) Land $ 2,932 $ 1,578 Buildings 27,359 10,642 Furniture, fixtures, and equipment 56,438 46,934 Capitalized leases 2,259 2,259 88,988 61,413 Less: accumulated depreciation and amortization (48,530 ) (42,093 ) Net book value $ 40,458 $ 19,320 Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $5.7 million , $5.5 million and $5.4 million for the years ended September 30, 2018 , 2017 and 2016 , respectively. Amortization expense on capitalized leases for the years ended September 30, 2018 , 2017 and 2016, was $ 0.1 million , $0.1 million and $0.2 million , respectively, and is included in occupancy and equipment expense. Substantially all of the Company's capitalized leases at September 30, 2018 were building leases. |
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS | 12 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
TIME CERTIFICATES OF DEPOSITS | TIME CERTIFICATES OF DEPOSITS Time certificates of deposits in denominations of $ 250,000 or more were approximately $163.3 million and $85.2 million at September 30, 2018 , and 2017 , respectively. At September 30, 2018 , the scheduled maturities of time certificates of deposits were as follows for the years ending: As of September 30, (Dollars in Thousands) 2019 $ 1,562,801 2020 125,581 2021 16,623 2022 6,929 2023 1,048 Total (1) 1,712,982 (1) As of September 30, 2018, the Company had $1.44 billion of certificates of deposits which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition. Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $ 250,000 by the DIF under management of the FDIC. |
SHORT TERM DEBT AND LONG TERM D
SHORT TERM DEBT AND LONG TERM DEBT | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
SHORT TERM DEBT AND LONG TERM DEBT | SHORT TERM DEBT AND LONG TERM DEBT Short Term Debt September 30, 2018 2017 Overnight federal funds purchased $ 422,000 $ 987,000 Short-term FHLB advances — 415,000 Short-term capital lease 65 62 Repurchase agreements 3,694 2,472 Total 425,759 1,404,534 T he Company had $422.0 million of overnight federal funds purchased from the FHLB at September 30, 2018 as compared to $987.0 million at September 30, 2017 . At September 30, 2018 , the Company had no short-term advances from the FHLB as compared to $415.0 million at September 30, 2017 . The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in real estate and securities collateral. The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB. Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement. At fiscal year-end 2018 and 2017 , the Bank pledged securities with fair values of approximately $ 1.06 billion and $ 1.07 billion , respectively, against specific FHLB advances. In addition, qualifying real estate loans of approximately $756.0 million , and $628.0 million were pledged as collateral at September 30, 2018 , and 2017 , respectively. As of September 30, 2018 , the Company was the lessee on three capital leases, two equipment leases and one property lease. At September 30, 2018 , the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $64,818 . Securities sold under agreements to repurchase totaled approximately $ 3.7 million and $ 2.5 million at September 30, 2018 , and 2017 , respectively. An analysis of securities sold under agreements to repurchase at September 30, 2018 and 2017 follows: September 30, 2018 2017 (Dollars in Thousands) Highest month-end balance $ 3,740 $ 3,782 Average balance 2,557 2,225 Weighted average interest rate for the year 2.05 % 0.98 % Weighted average interest rate at year end 2.48 % 1.59 % The Company pledged securities with fair values of approximately $13.9 million at September 30, 2018 , as collateral for securities sold under agreements to repurchase. There were $9.3 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2017 . The Company has a line of credit with another financial institution for $25.0 million as of September 30, 2018 . This line of credit has no fee, and, as of September 30, 2018, the Company had not drawn on it. Long Term Debt September 30, 2018 2017 (Dollars in Thousands) Long-term FHLB advances $ — $ — Trust preferred securities 13,661 10,310 Subordinated debentures (net of issuance costs) 73,491 73,347 Long-term capital lease 1,811 1,876 Total 88,963 85,533 At September 30, 2018 and 2017, the Company had no long-term advances from the FHLB. At September 30, 2018, the scheduled maturities of the Company's long-term debt were as follows for the years ending: September 30, (Dollars in Thousands) Trust preferred securities Subordinated debentures Long-term capital lease Total 2019 $ — $ — $ — $ — 2020 — — 73 73 2021 — — 77 77 2022 — — 82 82 2023 — — 87 87 Thereafter 13,661 73,491 1,492 88,644 Total long-term debt $ 13,661 $ 73,491 $ 1,811 $ 88,963 Certain trust preferred securities are due to First Midwest Financial Capital Trust I, a 100% -owned nonconsolidated subsidiary of the Company. The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The securities bear the same interest rate and terms as the trust preferred securities. The securities are included on the Consolidated Statements of Financial Condition as liabilities. The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% ( 6.35% at September 30, 2018 , and 5.22% at September 30, 2017 ), not to exceed 12.5% . The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions are required to be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date. The redemption price is $ 1,000 per capital security plus any accrued and unpaid distributions to the date of redemption. Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock. Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations. Through the Crestmark Acquisition, the Company acquired $3.4 million in floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The subordinated debentures bear interest at LIBOR plus 3.00% , have a stated maturity of 30 years and are redeemable by the Company at par, with regulatory approval. The interest rate is reset quarterly at distribution dates in February, May, August, and November. The interest rate as of September 30, 2018 was 5.31% . The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years. The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million . At September 30, 2018, the Company had $73.5 million in subordinated debentures, net of issuance costs of $1.5 million . Accumulated interest expense on the subordinated debentures was $8.6 million as of September 30, 2018. As of September 30, 2018, the Company was the lessee on three capital leases, two equipment leases and one property lease. At September 30, 2018, the portion of the liability expected to be expensed and amortized beyond 12 months was $1.8 million . The majority of the $1.8 million is related to the Urbandale, Iowa retail branch location . |
EMPLOYEE STOCK OWNERSHIP AND PR
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | 12 Months Ended |
Sep. 30, 2018 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split with respect to the Company's common stock effected on October 4, 2018. The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1,000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21 . ESOP expense of $ 2,073,000 , $ 1,668,000 and $ 1,150,000 was recorded for the years ended September 30, 2018 , 2017 and 2016 , respectively. Contributions of $ 2,011,040 , $ 1,606,102 and $ 1,174,682 were made to the ESOP during the years ended September 30, 2018 , 2017 and 2016 , respectively. Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated. For the years ended September 30, 2018 , 2017 and 2016 , 72,996 shares, 61,458 shares and 58,143 shares, from the suspense account, with a fair value of $ 27.55 , $ 26.13 and $ 20.20 per share, respectively, were released. For the years ended September 30, 2018 , 2017 and 2016 , allocated shares and total ESOP shares reflect 6,687 shares, 42,378 shares and 46,506 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings. At September 30, 2018 , 2017 and 2016 , there were 3,987 , 4,437 and 8,130 shares purchased, respectively, for dividend reinvestment. Year-end ESOP shares are as follows: At September 30, 2018 2017 2016 (Dollars in Thousands) Allocated shares 812,346 768,657 788,616 Unearned shares — — Total ESOP shares 812,346 768,657 788,616 Fair value of unearned shares $ — $ — $ — The Company also has a profit sharing plan covering substantially all full-time employees. Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2018 , 2017 and 2016 was $ 2.2 million, $ 1.6 million and $ 1.3 million, respectively. |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company with respect to its common stock on October 4, 2018. The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested restricted shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2018 , 2017 and 2016. Year Ended September 30, 2018 2017 2016 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $3,139, $3,907, and $192, respectively $ 7,878 $ 6,486 $ 559 As of September 30, 2018 , stock-based compensation expense not yet recognized in income totaled $ 17.0 million, which is expected to be recognized over a weighted-average remaining period of 3.59 years. At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model. The exercise price of stock options equals the fair market value of the underlying stock at the date of grant. Options are issued for 10 -year periods with 100% vesting generally occurring either at grant date or over a four -year period. No options were granted during the years ended September 30, 2018 , 2017 or 2016. The intrinsic value of options exercised during the years ended September 30, 2018 , 2017 and 2016 were $ 1.9 million, $ 1.8 million and $ 1.5 million, respectively. Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares vest immediately. The total fair value of director’s shares granted during the years ended September 30, 2018 , 2017 and 2016 was $ 1.1 million, $ 0.5 million and $ 0.2 million, respectively. In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan. No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2018 ; however, previously awarded options were exercised under this plan during the year ended September 30, 2017. In addition, during the first and second quarters of fiscal 2017, shares were granted to certain named executive officers (“NEOs”) of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years. The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2018 and 2017 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2017 227,271 $ 7.54 2.28 $ 4,225 Granted — — — — Exercised (71,310 ) 5.48 — 1,909 Forfeited or expired — — — — Options outstanding, September 30, 2018 155,961 $ 8.48 1.78 $ 2,974 Options exercisable end of year 155,961 $ 8.48 1.78 $ 2,974 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 376,680 $ 8.58 2.68 $ 4,379 Granted — — — — Exercised (88,158 ) 11.13 — 1,790 Forfeited or expired (61,251 ) 9 — 1,464 Options outstanding, September 30, 2017 227,271 $ 7.54 2.28 $ 4,225 Options exercisable end of year 227,271 $ 7.54 2.28 $ 4,225 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2017 913,578 $ 28.99 Granted 354,108 30.36 Vested (253,944 ) 27.49 Forfeited or expired (7,929 ) 23.27 Nonvested shares outstanding, September 30, 2018 1,005,813 $ 29.89 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 61,968 $ 13.79 Granted 949,812 29.16 Vested (87,405 ) 21.41 Forfeited or expired (10,797 ) 18.80 Nonvested shares outstanding, September 30, 2017 913,578 $ 28.99 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: Years ended September 30, 2018 2017 2016 (Dollars in Thousands) Federal: Current $ (4,023 ) $ 12,153 $ 4,410 Deferred 5,895 (5,040 ) (440 ) 1,872 7,113 3,970 State: Current 2,611 4,366 1,422 Deferred 634 (1,246 ) 210 3,245 3,120 1,632 Income tax expense $ 5,117 $ 10,233 $ 5,602 The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities at September 30, 2018 and 2017 were: September 30, 2018 2017 (Dollars in Thousands) Deferred tax assets: Bad debts $ 3,224 $ 2,832 Deferred compensation 3,495 1,548 Stock based compensation 3,758 3,436 AMT Credit — 1,869 Intangibles — 5,235 Net unrealized losses on securities available for sale 10,663 — Valuation adjustments 6,991 — General business credits (1) 12,243 — Accrued expenses 3,144 1,188 Other assets 1,629 1,579 45,147 17,687 Deferred tax liabilities: Premises and equipment (347 ) (1,713 ) Intangibles (4,231 ) — Net unrealized gains on securities available for sale — (4,934 ) Deferred income (2,070 ) — Leased assets (17,985 ) — Other liabilities (1,777 ) (1,939 ) (26,410 ) (8,586 ) Net deferred tax assets $ 18,737 $ 9,101 (1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the year ended September 30, 2018 or in previous periods by Crestmark prior to acquisition. These credits expire on September 30, 2037. The table below reconciles the statutory federal income tax expense and rate to the effective income tax expense and rate for the years presented. The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense. Years ended September 30, 2018 2017 2016 (Dollars in Thousands) Amount Rate Amount Rate Amount Rate Statutory federal income tax expense and rate $ 14,082 24.5 % $ 19,303 35.0 % $ 13,588 35.0 % Change in tax rate resulting from: State income taxes net of federal benefits 2,461 4.3 % 2,014 3.7 % 933 2.4 % Tax exempt income (6,968 ) (12.1 )% (9,991 ) (18.1 )% (8,257 ) (21.3 )% Nondeductible acquisition costs 1,295 2.3 % — — % — — % General business credits (3,948 ) (6.9 )% — — % — — % Tax Reform 3,849 6.7 % — — % — — % Amended Crestmark Bancorp historical tax return (4,644 ) (8.1 )% — — % — — % Other, net (1,010 ) (1.7 )% (1,093 ) (2.0 )% (662 ) (1.7 )% Total income tax expense $ 5,117 9.0 % $ 10,233 18.6 % $ 5,602 14.4 % As of September 30, 2018 , the Company had a gross deferred tax asset of $2.0 million for separate company state cumulative net operating loss carryforwards, for which $1.6 million was reserved. At September 30, 2017, the Company had a gross deferred tax asset of $1.3 million for separate company state cumulative net operating loss carryforwards, which was fully reserved for. In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2018 , or 2017 with the exception of the state cumulative net operating loss carryforwards discussed above. Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling $6.7 million for the Bank. Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $1.4 million at September 30, 2018 and 2017 . If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $1.4 million would be recorded as expense. The Tax Act was signed into law on December 22, 2017. In addition to implementing numerous other changes to the U.S. tax regime, the Tax Act lowers the U.S. corporate tax rate from 35% to 21% effective for taxable years beginning on or after January 1, 2018. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the Tax Act, the Company remeasured its deferred tax assets and deferred tax liabilities during its fiscal 2018 first quarter, resulting in additional income tax expense of $3.6 million . As the Company’s fiscal year end ends on September 30, the statutory corporate rate for fiscal 2018 was prorated to 24.5% . The provisions of ASC 740, Income Taxes, address the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the Consolidated Financial Statements. Under ASC 740, the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination, with a tax examination being presumed to occur, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company uses the flow through method of accounting for investment tax credits under which the credits are recognized as a reduction to income tax expense in the period in which the credit arises. During the fiscal year ended September 30, 2018, $4.0 million in investment tax credits were recognized as a reduction to income tax expense. During the fiscal years ended September 30, 2017 and 2016, no investment tax credits were recognized. The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the Consolidated Financial Statements and the final resolution of a tax issue during the period. The tax years ended September 30, 2015 and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended September 30, 2015 and later remain open for examination, with few exceptions. A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2018 , and 2017 follows: September 30, 2018 2017 (Dollars in Thousands) Balance at beginning of year $ 645 $ 525 Additions for tax positions related to the current year — 192 Additions for tax positions related to the prior years — 31 Reductions for tax positions related to prior years (211 ) (103 ) Balance at end of year $ 434 $ 645 The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $ 384,000 as of September 30, 2018 . The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was $ 68,000 as of September 30, 2018 . The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | 12 Months Ended |
Sep. 30, 2018 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS As U.S. banking organizations, the Company and the Bank are required to comply with the regulatory capital rules adopted by the Federal Reserve and the OCC (the "Basel III Capital Rules") that became effective on January 1, 2015, subject to phase-in periods for certain requirements and other provisions of the Basel III Capital Rules. Under the Basel III Capital Rules and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. The Basel III Capital Rules require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2018, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements. The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company Bank Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions September 30, 2018 Tier 1 leverage ratio 8.50 % 9.75 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 10.56 12.50 4.50 6.50 Tier 1 capital ratio 10.97 12.56 6.00 8.00 Total qualifying capital ratio 13.18 12.89 8.00 10.00 September 30, 2017 Tier 1 leverage ratio 7.64 % 9.64 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 13.97 18.22 4.50 6.50 Tier 1 capital ratio 14.46 18.22 6.00 8.00 Total qualifying capital ratio 18.41 18.59 8.00 10.00 The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2018 (Dollars in Thousands) Total stockholders' equity $ 747,726 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 299,456 LESS: Certain other intangible assets 64,716 LESS: Net unrealized gains (losses) on available-for-sale securities (33,114 ) LESS: Non-controlling interest 3,574 LESS: Unrealized currency gains (losses) 3 Common Equity Tier 1 (1) 413,091 Long-term debt and other instruments qualifying as Tier 1 13,661 Tier 1 minority interest not included in common equity tier 1 capital 2,118 Total Tier 1 capital 428,870 Allowance for loan and lease losses 13,185 Subordinated debentures (net of issuance costs) 73,491 Total qualifying capital 515,546 (1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015. Under the Basel III Capital Rules, since January 1, 2016, the Company and the Bank have been required to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2018, the Company and Bank were in compliance with the capital conservation buffer requirement. The capital conservation buffer was subject to a three year phase-in and will increase the three risk-based capital ratios by 0.625% for 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying Consolidated Financial Statements. At September 30, 2018 and 2017 , unfunded loan commitments approximated $ 748.8 million and $ 233.2 million, respectively, excluding undisbursed portions of loans in process. The increase over the prior year was primarily attributable to loans acquired through the Crestmark Acquisition. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are cancelled upon expiration of the commitment term as outlined in each individual contract. The Company had $1.4 million in commitments to purchase securities at September 30, 2018 and none at September 30, 2017 . The Company had no commitments to sell securities at September 30, 2018 or September 30, 2017 . The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Management monitors several factors when estimating its allowance for uncollectible off-balance-sheet credit exposures, including, but not limited to, economic developments and historical loss rates. At September 30, 2018 , the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million , as compared to $0.2 million at September 30, 2017 . This amount is maintained as a separate liability account within other liabilities. Since certain commitments to make loans and to fund lines of credit expire without being used, the amount does not necessarily represent future cash commitments. In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. LEGAL PROCEEDINGS The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“INB”) that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. The Bank was served on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs have been wound down, there are two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4,001,025 . The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. Other than the matters set forth above and litigation routine to the Company's or its subsidiaries' respective businesses, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2037 , and require annual rentals ranging from $ 400 to $ 789,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company also entered into capital lease agreements during the fiscal year ended September 30, 2015, for building and equipment expiring at various times through fiscal year 2035 . Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2018 , and included in interest expense. In November 2014, the Company entered into a sale-leaseback transaction for one of its community bank locations in the Des Moines area. This lease meets the requirements of a capital lease and has been reflected as such in the financial statements. The original term of the lease is 20 years and does not contain any penalties for failure to renew after the initial 20 year term where guarantees or loans from the lessee to the lessor are expected to be outstanding. The Company has the option to extend the lease for four additional five year terms at the conclusion of the original lease term. The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the years presented below as of September 30, 2018 . Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2019 $ 3,854 $ 179 2020 3,656 182 2021 3,429 182 2022 2,955 182 2023 2,561 182 Thereafter 21,428 2,058 Total Leases Commitments $ 37,883 $ 2,965 Amounts representing interest $ 1,089 Present value of net minimum lease payments 1,876 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other . The Meta Payment Systems and Tax Services divisions are reported in the Payments segment. The Community Banking, Commercial Finance and Consumer Finance divisions are reported in the Banking segment . Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in Corporate Services/Other. Payments Banking Corporate Services/Other Total Year Ended September 30, 2018 Interest income $ 24,487 $ 97,817 $ 36,230 $ 158,534 Interest expense 1,646 7,012 19,327 27,985 Net interest income 22,841 90,805 16,903 130,549 Provision for loan and lease losses 21,344 8,088 — 29,432 Non-interest income 176,250 13,950 (5,675 ) 184,525 Non-interest expense 126,610 46,982 54,640 228,232 Income (loss) before income tax expense (benefit) 51,137 49,685 (43,412 ) 57,410 Total assets 186,502 3,413,409 2,235,156 5,835,067 Total goodwill 87,145 216,125 — 303,270 Total deposits 2,412,986 746,003 1,271,998 4,430,987 Payments Banking Corporate Services/Other Total Year Ended September 30, 2017 Interest income $ 13,845 $ 52,231 $ 42,027 $ 108,103 Interest expense 503 2,723 11,647 14,873 Net interest income 13,342 49,508 30,380 93,230 Provision for loan losses 7,613 2,976 — 10,589 Non-interest income 165,707 4,685 1,780 172,172 Non-interest expense 132,984 24,520 42,159 199,663 Income (loss) before income tax expense (benefit) 38,452 26,697 (9,999 ) 55,150 Total assets 185,521 1,343,968 3,698,843 5,228,332 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,436,893 229,969 556,562 3,223,424 Payments Banking Corporate Services/Other Total Year Ended September 30, 2016 Interest income $ 9,711 $ 38,321 $ 33,364 $ 81,396 Interest expense 181 1,331 2,579 4,091 Net interest income 9,530 36,990 30,785 77,305 Provision for loan losses 971 3,634 — 4,605 Non-interest income 95,261 4,280 1,229 100,770 Non-interest expense 77,411 23,001 34,236 134,648 Income (loss) before income tax expense (benefit) 26,409 14,635 (2,222 ) 38,822 Total assets 87,311 946,420 2,972,688 4,006,419 Total goodwill 25,350 11,578 — 36,928 Total deposits 2,131,042 299,030 10 2,430,082 |
PARENT COMPANY FINANCIAL STATEM
PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS Presented below are condensed financial statements for the parent company, Meta, at the dates and for the years presented below. CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2018 2017 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 28,209 $ 14,569 Investment securities held to maturity 411 310 Investment in subsidiaries 823,215 521,021 Other assets 124 96 Total assets $ 851,959 $ 535,996 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Long term debt $ 87,152 $ 83,657 Other liabilities 17,081 17,843 Total liabilities $ 104,233 $ 101,500 STOCKHOLDERS' EQUITY Common stock $ 393 $ 288 Additional paid-in capital 565,811 258,144 Retained earnings 213,048 167,164 Accumulated other comprehensive income (loss) (33,111 ) 9,166 Treasury stock, at cost (1,989 ) (266 ) Total equity attributable to parent 744,152 434,496 Non-controlling interest 3,574 — Total stockholders' equity 747,726 434,496 Total liabilities and stockholders' equity $ 851,959 $ 535,996 CONDENSED STATEMENTS OF OPERATIONS Years Ended September 30, 2018 2017 2016 (Dollars in Thousands) Interest expense $ 5,061 $ 4,959 $ 1,022 Other expense 663 440 382 Total expense 5,724 5,399 1,404 Loss before income taxes and equity in undistributed net income of subsidiaries (5,724 ) (5,399 ) (1,404 ) Income tax (benefit) (1,504 ) (1,935 ) (519 ) Loss before equity in undistributed net income of subsidiaries (4,220 ) (3,464 ) (885 ) Equity in undistributed net income of subsidiaries 55,840 48,381 34,105 Net income attributable to parent $ 51,620 $ 44,917 $ 33,220 CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2018 2017 2016 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Income attributable to parent $ 51,620 $ 44,917 $ 33,220 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion, net 143 136 (22 ) Equity in undistributed net income of subsidiaries (55,840 ) (48,381 ) (34,105 ) Stock compensation 11,123 10,393 426 Other assets 232 7 (5 ) Accrued expenses and other liabilities (860 ) 16,636 541 Cash dividend received 45,315 — — Net cash provided by operating activities 51,733 23,708 55 CASH FLOWS FROM INVESTING ACTIVITES Held to Maturity: Proceeds from maturities and principal repayments 8 — — Capital contributions to subsidiaries (20,322 ) (82,820 ) (81,000 ) Net cash (used in) investing activities (20,314 ) (82,820 ) (81,000 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (5,736 ) (4,839 ) (4,389 ) Payment: Short term debt (11,642 ) — — Long term debt (258 ) — 75,000 Debt issuance costs — — (1,767 ) Purchase of shares by ESOP 1,606 1,174 — Proceeds/(payment): Contingent consideration - equity — 24,142 — Exercise of stock options & issuance of common stock 148 650 13,537 Issuance of restricted stock 4 12 — Issuance of commons shares due to acquisitions 295,767 37,296 — Cash acquired due to acquisitions 697 — — Net increase in investment in subsidiaries (295,767 ) — — Shares repurchased for tax withholdings on stock compensation (2,598 ) (470 ) — Net cash provided by (used in) financing activities (17,779 ) 57,965 82,381 Net change in cash and cash equivalents $ 13,640 $ (1,147 ) $ 1,436 CASH AND CASH EQUIVALENTS Beginning of year 14,569 15,716 14,280 End of year $ 28,209 $ 14,569 $ 15,716 The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company. For further discussion, see Note 13 herein. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) All share and per share data for all periods presented in the following table has been adjusted to reflect the 3-for-1 forward stock split with respect to the Company's common stock effected by the Company on October 4, 2018. QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands, Except Per Share Data) Fiscal Year 2018 Interest and dividend income $ 30,857 $ 33,371 $ 34,104 $ 60,202 Interest expense 4,661 5,966 5,693 11,665 Net interest income 26,196 27,405 28,411 48,537 Provision for loan and lease losses 1,068 18,343 5,315 4,706 Non-interest income 29,268 97,419 33,225 24,613 Net Income attributable to parent 4,670 31,436 6,792 8,722 Earnings per common share Basic $ 0.15 $ 1.07 $ 0.22 $ 0.24 Diluted 0.15 1.06 0.22 0.24 Dividend declared per share 0.04 0.04 0.04 0.05 Fiscal Year 2017 Interest and dividend income $ 22,575 $ 27,718 $ 28,861 $ 28,949 Interest expense 2,742 3,752 3,918 4,461 Net interest income 19,833 23,966 24,943 24,488 Provision (recovery) for loan losses 843 8,649 1,240 (144 ) Non-interest income 19,349 92,170 30,820 29,833 Net Income attributable to parent 1,244 32,142 9,787 1,744 Earnings per common share Basic $ 0.05 $ 1.15 $ 0.35 $ 0.07 Diluted 0.05 1.14 0.35 0.07 Dividend declared per share 0.04 0.04 0.04 0.04 Fiscal Year 2016 Interest and dividend income $ 18,275 $ 20,629 $ 20,763 $ 21,729 Interest expense 720 691 844 1,836 Net interest income 17,555 19,938 19,919 19,893 Provision for loan losses 786 1,173 2,098 548 Non-interest income 16,834 40,901 23,807 19,228 Net Income attributable to parent 4,058 14,283 8,873 6,006 Earnings per common share Basic $ 0.16 $ 0.57 $ 0.35 $ 0.23 Diluted 0.16 0.56 0.35 0.23 Dividend declared per share 0.04 0.04 0.04 0.04 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy is as follows: Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date. Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market. Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. There were no transfers between levels of the fair value hierarchy for the years ended September 30, 2018 or 2017 . Securities Available for Sale and Held to Maturity . Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments. The Company’s Level 1 securities include equity securities and mutual funds. The Company’s Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality MBS and municipal bonds. The Company had no Level 3 securities at September 30, 2018 , or 2017 . The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model‑based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third-party provider which utilizes several sources for valuing fixed-income securities. These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology and the third‑party provider’s own matrix and desk pricing. The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value. Sources utilized by the third-party provider include but are not limited to pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third-party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness. The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2018 and 2017 . Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the Consolidated Statements of Financial Condition. Fair Value At September 30, 2018 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Small business administration securities 44,337 — 44,337 — — — — — Obligations of states and political subdivisions 16,910 — 16,910 — — — — — Non-bank qualified obligations of states and political subdivisions 1,109,885 — 1,109,885 — 153,546 — 153,546 — Asset-backed securities 313,028 — 313,028 — — — — — Mortgage-backed securities 364,065 — 364,065 — 7,428 — 7,428 — Total debt securities 1,848,225 — 1,848,225 — 160,974 — 160,974 — Common equities and mutual funds 3,800 3,800 — — — — — — Total securities $ 1,852,025 $ 3,800 $ 1,848,225 $ — $ 160,974 $ — $ 160,974 $ — Fair Value At September 30, 2017 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Small business administration securities 57,871 — 57,871 — — — — — Obligations of states and political subdivisions — — — — 19,368 — 19,368 — Non-bank qualified obligations of states and political subdivisions 950,829 — 950,829 — 432,361 — 432,361 — Asset-backed securities 96,832 — 96,832 — — — — — Mortgage-backed securities 586,454 — 586,454 — 112,456 — 112,456 — Total debt securities 1,691,986 — 1,691,986 — 564,185 — 564,185 — Common equities and mutual funds 1,445 1,445 — — — — — — Total securities $ 1,693,431 $ 1,445 $ 1,691,986 $ — $ 564,185 $ — $ 564,185 $ — Foreclosed Real Estate and Repossessed Assets . Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis. The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets. Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is considered impaired, an allowance for loan and lease losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables . The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis as of September 30, 2018 and 2017 . Fair Value at September 30, 2018 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Commercial finance $ 4,825 $ — $ — $ 4,825 Total National Lending 4,825 — — 4,825 Total impaired loans and leases 4,825 — — 4,825 Foreclosed Assets, net 31,638 — — 31,638 Total $ 36,463 $ — $ — $ 36,463 Fair Value At September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2018 Fair Value at September 30, 2017 Valuation Technique Unobservable Input Impaired Loans and Leases, net $ 4,825 $ — Market approach Appraised values (1) Foreclosed Assets, net 31,638 292 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10% . T he following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates provided. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2018 and 2017 , as more fully described below. The operations of the Company are managed from a going concern basis and not a liquidation basis. As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations. Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value. Neither of these components have been given consideration in the presentation of fair values below. The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2018 and 2017 . September 30, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 99,977 $ 99,977 $ 99,977 $ — $ — Securities available for sale 1,852,025 1,852,025 3,800 1,848,225 — Securities held to maturity 172,154 160,974 — 160,974 — Total securities 2,024,179 2,012,999 3,800 2,009,199 — Loans held for sale 15,606 15,606 — 15,606 — Loans and leases receivable: Commercial finance 1,509,849 1,506,969 — — 1,506,969 Consumer finance 335,361 342,931 — — 342,931 Tax services 1,073 1,073 — — 1,073 Total National Lending 1,846,283 1,850,973 — — 1,850,973 Commercial and multi-family real estate 748,579 731,291 — — 731,291 One to four family residential mortgage 223,482 220,697 — — 220,697 Agricultural 60,498 58,849 — — 58,849 Commercial operating 42,311 41,912 — — 41,912 Consumer 23,836 24,033 — — 24,033 Total Community Banking 1,098,706 1,076,782 — — 1,076,782 Total loans and leases receivable 2,944,989 2,927,755 — — 2,927,755 Federal Home Loan Bank stock 23,400 23,400 — 23,400 — Accrued interest receivable 22,016 22,016 22,016 — — Financial liabilities Non-interest bearing demand deposits 2,405,274 2,405,274 2,405,274 — — Interest bearing demand deposits, savings, and money markets 218,347 218,347 218,347 — — Certificates of deposits 276,180 273,800 — 273,800 — Wholesale non-maturing deposits 94,384 94,384 94,384 — — Wholesale certificates of deposits 1,436,802 1,432,146 — 1,432,146 — Total deposits 4,430,987 4,423,951 2,718,005 1,705,946 — Advances from Federal Home Loan Bank — — — — — Federal funds purchased 422,000 422,000 422,000 — — Securities sold under agreements to repurchase 3,694 3,694 — 3,694 — Capital leases 1,876 1,876 — 1,876 — Trust preferred securities 13,661 13,866 — 13,866 — Subordinated debentures 73,491 75,563 — 75,563 — Accrued interest payable 7,794 7,794 7,794 — — September 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 1,267,586 $ 1,267,586 $ 1,267,586 $ — $ — Securities available for sale 1,693,431 1,693,431 1,445 1,691,986 — Securities held to maturity 563,529 564,185 — 564,185 — Total securities 2,256,960 2,257,616 1,445 2,256,171 — Loans and leases receivable: Commercial finance 255,308 255,813 — — 255,813 Consumer finance 140,229 141,958 — — 141,958 Tax services 192 192 — — 192 Total National Lending 395,729 397,963 — — 397,963 Commercial and multi-family real estate 585,510 576,330 — — 576,330 One to four family residential mortgage 196,706 196,970 — — 196,970 Agricultural 95,394 94,454 — — 94,454 Commercial operating 30,718 30,682 — — 30,682 Consumer 22,775 22,003 — — 22,003 Total Community Banking 931,103 920,439 — — 920,439 Total loans and leases receivable 1,326,832 1,318,402 — — 1,318,402 Federal Home Loan Bank stock 61,123 61,123 — 61,123 — Accrued interest receivable 19,380 19,380 19,380 — — Financial liabilities Non-interest bearing demand deposits 2,454,057 2,454,057 2,454,057 — — Interest bearing demand deposits, savings, and money markets 169,557 169,557 169,557 — — Certificates of deposit 123,637 123,094 — 123,094 — Wholesale non-maturing deposits 18,245 18,245 18,245 — — Wholesale certificates of deposits 457,928 457,509 — 457,509 — Total deposits 3,223,424 3,222,462 2,641,859 580,603 — Advances from Federal Home Loan Bank 415,000 415,003 — 415,003 — Federal funds purchased 987,000 987,000 987,000 — — Securities sold under agreements to repurchase 2,472 2,472 — 2,472 — Capital leases 1,938 1,938 — 1,938 — Trust preferred 10,310 10,447 — 10,447 — Subordinated debentures 73,347 76,500 — 76,500 — Accrued interest payable 2,280 2,280 2,280 — — The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2018 and 2017 . CASH AND CASH EQUIVALENTS The carrying amount of cash and short-term investments is assumed to approximate the fair value. SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair values for investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. LOANS HELD FOR SALE The carrying amount of loans held for sale is assumed to approximate the fair value. LOANS AND LEASES RECEIVABLE, NET The fair value of loans and leases is estimated using a historical or replacement cost basis concept ( i.e., an entrance price concept). The fair value of loans and leases was estimated by discounting the future cash flows using the current rates at which similar loans and leases would be made to borrowers and for similar remaining maturities. When using the discounting method to determine fair value, loans and leases were grouped by homogeneous loans and leases with similar terms and conditions and discounted at a target rate at which similar loans and leases would be made to borrowers at September 30, 2018 and 2017 . In addition, when computing the estimated fair value for all loans and leases, allowances for loan and lease losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component. FHLB STOCK The fair value of such stock is assumed to approximate book value since the Company is generally able to redeem this stock at par value. ACCRUED INTEREST RECEIVABLE The carrying amount of accrued interest receivable is assumed to approximate the fair value. DEPOSITS The carrying values of non-interest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty. The fair value of time certificates of deposit and wholesale certificates of deposit were estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities. In accordance with ASC 825, Financial Instruments , no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under ASC 825. ADVANCES FROM FHLB The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities. FEDERAL FUNDS PURCHASED The carrying amount of federal funds purchased is assumed to approximate the fair value. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, CAPITAL LEASES, TRUST PREFERRED SECURITIES AND SUBORDINATED DEBENTURES The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings. ACCRUED INTEREST PAYABLE The carrying amount of accrued interest payable is assumed to approximate the fair value. LIMITATIONS Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company had a total of $303.3 million of goodwill as of September 30, 2018 . The recorded goodwill was due to two separate business combinations during fiscal 2015, two separate business combinations during the first quarter of fiscal 2017, and one business combination during the fourth quarter of fiscal 2018. The fiscal 2015 business combinations included $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015. The fiscal 2017 business combinations included $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016, and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The fiscal 2018 business combination included $204.5 million of goodwill in connection with the Crestmark Acquisition consummated on August 1, 2018. The goodwill associated with the AFS/IBEX, Refund Advantage, EPS, and SCS transactions are deductible for tax purposes. The goodwill associated with the Crestmark Acquisition is not deductible for tax purposes. The carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2018 and 2017 are as follows: September 30, 2018 2017 (Dollars in Thousands) Goodwill Beginning balance $ 98,723 $ 36,928 Acquisitions during the period 204,547 61,795 Write-offs during the period — — Ending balance $ 303,270 $ 98,723 The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2018 . Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Acquisitions during the period 3,634 — 24,278 449 28,361 Amortization during the period (698 ) (485 ) (7,530 ) (928 ) (9,641 ) Write-offs during the period — — — (179 ) (179 ) Balance as of September 30, 2018 $ 12,987 $ 1,297 $ 48,455 $ 7,980 $ 70,719 Balance upon acquisition $ 14,624 $ 2,480 $ 82,088 $ 10,951 $ 110,143 Accumulated amortization $ (1,637 ) $ (1,183 ) $ (23,385 ) $ (2,263 ) $ (28,468 ) Accumulated impairment $ (10,248 ) $ (708 ) $ (10,956 ) Balance as of September 30, 2018 $ 12,987 $ 1,297 $ 48,455 $ 7,980 $ 70,719 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,947 46,397 Amortization during the period (598 ) (525 ) (10,405 ) (835 ) (12,363 ) Write-offs during the period — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Balance upon acquisition $ 10,990 $ 2,480 $ 57,810 $ 10,502 $ 81,782 Accumulated amortization (939 ) (698 ) (15,855 ) (1,335 ) (18,827 ) Accumulated impairment — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded an immaterial impairment charge during the fourth quarter of fiscal 2018 and a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship. The weighted-average amortization period, by major intangible asset class and in total, for the acquisition during fiscal year 2018 were as follows: Weighted Average Amortization Period Intangible Crestmark Trademark 10.0 Customer Relationships 10.0 Technology/Other 3.0 Total 9.9 The anticipated future amortization of intangibles is as follows: Year ended (Dollars in Thousands) 2019 $ 17,733 2020 11,017 2021 8,559 2022 6,404 2023 5,077 Thereafter 21,929 Total anticipated intangible amortization $ 70,719 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 5, 2018, Meta common stock began trading on a split-adjusted basis as a result of the 3 -for-1 forward stock split with respect to Meta's common stock, which was effected on October 4, 2018 as a stock dividend. As a result of the stock split, the number of issued and outstanding shares of Meta common stock increased to 39.2 million shares, which includes shares issued in the Crestmark Acquisition. On October 30, 2018, the Company announced that its Board of Directors appointed Brad Hanson, President of Meta Financial Group, MetaBank and Meta Payment Systems, to the additional role of Chief Executive Officer, effective immediately. Hanson will also remain on the Meta Board. Hanson replaces J. Tyler Haahr, who stepped down as Chief Executive Officer. It is expected that Haahr will remain Chairman of the Board and an employee through the Company’s Annual Meeting of Stockholders expected to be held in January 2019. Frederick V. Moore, currently Lead Director and Vice Chairman, has been appointed to serve as Chairman effective following the date of the Annual Meeting. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the Consolidated Financial Statements of the Company. Through the Crestmark Acquisition, the Company acquired floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements. If an entity is not a VIE, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate. |
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION | NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of revenue relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans and community banking loans. The Company accepts deposits from customers in the normal course of business through its community bank division and on a national basis through its MPS and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. |
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS | USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the valuation of residual values within lease receivables, allowance for loan and lease losses, the valuation of foreclosed real estate and repossessed assets, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. |
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD | CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was $16.5 million at September 30, 2018 , and $1.5 million at September 30, 2017. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2018 , the Company had $16.0 million interest-bearing deposits held at the FHLB and $4.2 million in interest-bearing deposits held at the FRB. At September 30, 2018 , the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. |
SECURITIES | SECURITIES GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2018 or 2017. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset/liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2018 , 2017 and 2016 , there was no other-than-temporary impairment recorded. |
LOANS RECEIVABLE | LOANS AND LEASES RECEIVABLE LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company generally places Community Banking loans on nonaccrual status when: the full and timely collection of interest or principal becomes uncertain; they are 90 days past due for interest or principal, unless they are both well-secured and in the process of collection; or part of the principal balance has been charged off. The majority of the Company's National Lending loans follow the same nonaccrual policy as Community Banking loans with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due. The Company generally considers a loan to be impaired when, based on current information and events, it determines that it will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company's impaired loans predominantly include loans on nonaccrual status in the Banking segment and loans modified in a troubled-debt-restructuring, whether on accrual or nonaccrual status. The Company measures the amount of impairment, if any, based on the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loans effective interest rate. When collateral is the sole source of repayment for the impaired loan, the Company charges down to net realizable value. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. |
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS | MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, generally without recourse. Sold loans are not included in the Consolidated Financial Statements. The Bank generally retains the right to service the sold loans for a fee and records a servicing asset, which is included within Other Assets on the Consolidated Statements of Financial Condition. At September 30, 2018 and 2017, the Bank was servicing loans for others with aggregate unpaid principal balances of $ 134.0 million and $ 21.8 million, respectively. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN AND LEASE LOSSES The allowance for loan and lease losses ("ALLL") represents management’s estimate of probable loan and lease losses that have been incurred as of the date of the Consolidated Financial Statements. The ALLL is increased by a provision for loan and lease losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan or lease is necessarily subjective. Management’s periodic evaluation of the appropriateness of the ALLL is based on the Company’s and peer group’s past loan and lease loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the ALLL for specific problem loan or lease situations, the entire ALLL is available for any loan or lease charge-offs that occur. The ALLL consists of specific and general components. The specific component of the ALLL relates to impaired loans and leases. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Leases are generally considered impaired if collectability of the remaining minimum lease payments becomes uncertain. Often this is associated with a delay or shortfall in payments of 90 days or more for community banking loans and leases. Non-accrual loans and leases and all TDRs are considered impaired. Impaired loans and leases, or portions thereof, are charged off when deemed uncollectible. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general reserve covers Community Bank and Crestmark division loans and leases not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and leases and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2018 and 2017 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). • The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. • A three to seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors. • The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve in the Company's Community Bank portfolio. Qualitative adjustment considerations for the general reserve include considerations of changes in lending and leasing policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan and lease portfolio, changes in lending and leasing management and staff, trending in past due, classified, nonaccrual, and other loan and lease categories, changes in the Company’s loan and lease review system and oversight, changes in collateral and residual values, credit concentration risk, and the regulatory and legal requirements and environment. National Lending portfolios, outside of loans and leases attributable to the Crestmark division, primarily utilize a general reserve process that mostly uses historical factors related to the specific loan and lease portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for commercial insurance premium finance loans, 180 days for tax and other specialty lending loans, 120 days for consumer credit products and 90 days for other loans. See Note 3. Loans and Leases Receivable, Net for further information on the ALLL. |
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS | FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. The fair value of the real estate owned is based on independent appraisals, real estate brokers’ price opinions, or automated valuation methods, less costs to sell. The fair value of repossessed assets is based on available pricing guides, auction results or price opinions, less costs to sell. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan and lease losses. Subsequent valuations are periodically performed by management. If the subsequent fair value, less costs to sell, declines to less than the carrying amount of the asset, the shortfall is recognized in the period it becomes known as an impairment in non-interest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in non-interest expense. |
INCOME TAXES | INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
PREMISES, FURNITURE, AND EQUIPMENT | PREMISES, FURNITURE AND EQUIPMENT Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where the Company is the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. The Company primarily uses the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. The Company amortizes capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts. Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs. |
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) | EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the Consolidated Statements of Financial Condition as a reduction of stockholders’ equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company. At September 30, 2018 and 2017, all shares in the ESOP were allocated. |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company, in the normal course of business, makes commitments to make loans which are not reflected in the Consolidated Financial Statements. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition. |
GOODWILL | GOODWILL Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment at a reporting unit level. The Company has determined that its reporting units are one level below the operating segments and distinguish these reporting units based on how the segments and reporting units are managed, taking into consideration the economic characteristics, nature of the products, and customers of the segments and reporting units. The Company performs its impairment evaluation as of September 30 of each fiscal year. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the years ended September 30, 2018, 2017 or 2016. See Note 20. Goodwill and Intangible Assets for further information on Goodwill. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. See Note 20. Goodwill and Intangible Assets for further information on Intangible Assets. |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security. Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction. Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability. The securities underlying the agreements remain in the asset accounts of the Company. See Note 9. Short Term Debt and Long Term Debt for further information on Securities Sold under Agreements to Repurchase. |
REVENUE RECOGNITION | REVENUE RECOGNITION Interest revenue from loans, leases, and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan, lease, or investment. Income from service and other customer charges is recognized as earned. Revenue within the Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. The Company is adopting Accounting Standards Update 2014-09, Revenue from Contracts with Customers , and related amendments beginning October 1, 2018. For further discussion on revenue recognition, see ASU 2014-09 below in the New Accounting Pronouncements in this footnote. |
EARNINGS PER COMMON SHARE ("EPS") | EARNINGS PER COMMON SHARE (“EPS”) Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. The Company effected a 3 -for-1 forward stock split of its common stock on October 4, 2018. All EPS amounts have been retrospectively adjusted to reflect this stock split. See Note 5. Earnings per Common Share for further information on EPS. |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity. |
STOCK COMPENSATION | STOCK COMPENSATION Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. See Note 11. Share-Based Compensation Plans for further information on Stock Compensation. |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates . This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company has been analyzing its data and has taken measures to ensure its systems capture data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018. The Company has chosen a vendor for a software solution and has begun the implementation of the software. ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. - breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the Consolidated Financial Statements to be minimal. ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis ASU No. 2018-10, Codification Improvements to Topic 842 ASU No. 2018-11 , Targeted Improvements For lessees, Topic 842 requires leases to be recognized on the balance sheet, along with disclosure of key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, 2018-10 and 2018-11. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification expense recognition in the income statement. For lessors, Topic 842 requires lessors to classify leases as sales-type, direct financing or operating leases. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for the Company on October 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) the new standard's effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on October 1, 2019 using the effective date as its date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before October 1, 2019. The new standard provides several optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. As a lessee, the Company expects this new standard to have a material effect on its financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to (1) the recognition of ROU assets and lease liabilities on the balance sheet for the Company's office and equipment operating leases; (2) providing significant new disclosures about the Company's leasing activities. As a lessor, the Company is still in the process of assessing the impact of the standard on its existing lease portfolio. The Company does not expect a significant change in its leasing activities between now and adoption. The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company (as lessee) would not recognize ROU assets or lease liabilities. The Company (as lessee and lessor) also currently expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify. ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard effective October 1, 2018, using the modified retrospective approach with a cumulative effect adjustment included in Retained Earnings upon the date of adoption. Results for prior period amounts will not be adjusted and will continue to be reported in accordance with the Company’s historical accounting policies. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The most significant impact of the standard relates to the Company's accounting for revenues of prepaid cards in its MPS division, specifically, breakage on unregistered, unused cardholder balances. For such balances, the Company recognizes breakage revenue predominantly after the month of the card balance expiration rather than ratably over the life of the prepaid card. The Company performed an analysis on such revenues and has determined an approximate impact to Retained Earnings of $2.0 million in additional earned revenue upon adoption at October 1, 2018. All other revenue streams remain substantially unchanged. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the Consolidated Financial Statements. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the Consolidated Financial Statements. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company early adopted this ASU as of October 1, 2017. The Company reclassified certain prepayable debt securities from HTM to AFS during the first quarter of fiscal year 2018. See Note 6. Securities for additional information on the securities reclassified. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10) These ASUs make revisions to seven areas of Subtopic 825-10, including that equity investments will be required to be measured at fair value with changes in fair value being recognized in net income, simplifying the impairment assessment for equity investments without readily determinable fair value, eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost, requiring public business entities to use exit price notions when measuring fair value of financial instruments, requiring separate presentation in other comprehensive income of the portion of total change in fair value of a liability resulting from a change in the instrument specific credit risk, requiring separate presentation of financial assets and liabilities by measurement category and form of financial asset, and clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity’s other deferred tax assets. The improvements become effective in fiscal years beginning after December 15, 2017. The Company does not expect these improvements to have a material impact on its Consolidated Financial Statements. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash This ASU addresses the existing diversity in classifying and presenting changes in restricted cash on the statements of cash flows. The amendments in this ASU require that the statements of cash flows explain the change during the period of total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This ASU is effective for fiscal years beginning after December 15, 2017 and is not expected to have a material impact to the Company. ASU 2017-01, Clarifying the Definition of a Business This ASU amends Topic 805 by providing a screen to determine when a set of assets and activities is not a business. The screen reduces the number of transactions that need to be further evaluated. The amendments in this ASU provide a framework to assist entities in evaluating whether both an input and substantive process are present and narrows the definition of “output” so the term is consistent with how outputs are described in Topic 606. The definition of a business affects many areas of accounting including, acquisitions, disposals, goodwill and consolidation. This ASU becomes effective for fiscal years beginning after December 15, 2017 and are applied prospectively. This ASU is not expected to materially impact the Company. ASU 2017-04 , Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU amends Topic 350 for entities performing the two-step test to determine the amount, if any, of goodwill impairment. Under this ASU, the quantitative impairment analysis of goodwill is now only a one step test where the amount of impairment, if any, is equal to the excess of the reporting unit carrying amount over the reporting unit fair value. This ASU does not amend Topic 350 for entities performing a qualitative assessment of goodwill. The Company will early adopt this ASU beginning October 1, 2018 and will apply the guidance within, as necessary, on a prospective basis. As the Company performs a qualitative assessment over goodwill, the adoption of this ASU is not expected to have a material impact to the Company. ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets This ASU clarifies the scope of nonfinancial asset guidance in Subtopic 610-20 and provides guidance on the accounting for partial sales of nonfinancial assets within the scope of Subtopic 610-20. The amendments within this ASU are effective for annual reporting periods beginning after December 15, 2017. The amendments in this ASU are more impactful to the real estate, power and utilities, and alternative energy industries and is not expected to have a material impact on the Company's Consolidated Financial Statements. ASU 2018-02 , Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The reclassification is not required but is an accounting policy election that must be disclosed during the year of adoption. This ASU will be effective for fiscal years beginning after December 15, 2018 with earlier adoption permitted. At this time, the Company does not expect to elect the reclassification option. ASU 2018-07 , Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods or services from nonemployees. Key improvements from this ASU include clarifying the measurement date to the grant date and eliminating the requirement to reassess classification of such awards upon vesting. Any share-based awards to nonemployees classified as a liability that are not settled prior to adoption and any equity classified awards for which a measurement date has not been established will require remeasurement through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Upon transition, nonemployee awards are required to be measured at fair value as of the adoption date and must not remeasure assets that are completed. The Company will early adopt this ASU beginning October 1, 2018. This ASU is not expected to materially impact the Company's Consolidated Financial Statements. ASU 2018-09, Codification Improvements This ASU represents changes in various Subtopics to clarify, correct errors, or make minor improvements. The amendments are not expected to have a significant effect on current accounting practice. Subtopics impacted by this ASU that are relevant to the Company include Subtopic 220-10 Income Statement - Reporting Comprehensive Income-Overall, Subtopic 718-740 Compensation - Stock Compensation-Income Taxes, Subtopic 805-740 Business Combinations - Income Taxes, and Subtopic 820-10 Fair Value Measurement-Overall. Many of the amendments within this ASU do not require transition and are effective upon issuance. However, some are not effective until fiscal years beginning after December 15, 2018. The amendments within this ASU are not expected to materially impact the Company's Consolidated Financial Statements. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement This ASU modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The majority of the disclosure changes are to be applied on a prospective basis. The Company is currently in the process of reviewing this ASU to determine whether the modifications within will be adopted prior to the effective date. Although this ASU has a significant impact to the Company’s fair value disclosures, no additional impact to the Consolidated Financial Statements is expected. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Summarized Financial Information of Variable Interest Entities | The summarized financial information for the Company’s consolidated VIEs consisted of the following: September 30, 2018 (Dollars in Thousands) Cash and cash equivalents $ 867 Loans and leases receivable 131,197 Allowance for loan and lease losses (145 ) Accrued interest receivable 887 Rental equipment 99 Foreclosed real estate and repossessed assets 1,626 Other assets 3,247 Total assets 137,778 Accrued expenses and other liabilities 2,386 Non-controlling interest 3,574 Net assets less non-controlling interest 131,818 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Crestmark Bancorp, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table represents the approximate fair value of the assets acquired and liabilities assumed of Crestmark on the Consolidated Statements of Financial Condition as of August 1, 2018: As of August 1, 2018 (Dollars in Thousands) Fair value of consideration paid Cash paid $ 6 Stock issued 295,767 Total consideration paid 295,773 Fair value of assets acquired Cash and cash equivalents 58,858 Investment & MBS securities 25,349 Loan and lease receivables held for sale 17,494 Loan and lease receivables held for investment 1,046,010 Federal Home Loan Bank stock, at cost 33 Accrued interest receivable 5,381 Premises, furniture, and equipment 18,458 Rental equipment 98,977 Foreclosed real estate and repossessed assets 1,209 Intangible assets 28,253 Other assets 22,170 Total assets 1,322,192 Fair value of liabilities assumed Time certificates of deposits 295,590 Wholesale certificates of deposits 825,076 Total deposits 1,120,666 Short-term debt 11,642 Long-term debt 3,609 Accrued interest payable 3,581 Accrued expenses and other liabilities 88,301 Total liabilities assumed 1,227,799 Fair value of non-controlling interest assumed Non-controlling interest 3,167 Total non-controlling interest 3,167 Fair value of net assets acquired 91,226 Goodwill resulting from acquisition 204,547 |
Pro Forma Information | The following financial information presents the Company's results as if the Crestmark Acquisition on August 1, 2018 had occurred on October 1, 2016: Twelve Months Ended September 30, (Dollars in Thousands Except Share and Per Share Data) 2018 2017 Net interest income $ 206,822 $ 181,184 Net income attributable to parent 74,640 64,390 Basic earnings per share 1.91 1.71 Diluted earnings per share 1.91 1.70 |
EPS Financial, LLC [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the Consolidated Statements of Financial Condition as of November 1, 2016: As of November 1, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 21,877 Stock issued 26,507 Total consideration paid 48,384 Fair value of assets acquired Intangible assets 17,930 Other assets 79 Total assets 18,009 Fair value of net assets acquired 18,009 Goodwill resulting from acquisition $ 30,375 |
Specialty Consumer Services [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the Consolidated Statements of Financial Condition as of December 14, 2016. As of December 14, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 7,548 Stock issued 10,789 Paid Consideration 18,337 Contingent consideration - cash 17,252 Contingent consideration - equity 24,142 Contingent consideration payable 41,394 Total consideration paid 59,731 Fair value of assets acquired Intangible assets 28,310 Other assets 2 Total assets 28,312 Fair value of net assets acquired 28,312 Goodwill resulting from acquisition $ 31,419 |
LOANS AND LEASES RECEIVABLE, _2
LOANS AND LEASES RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Year-end Loans Receivable | Year-end loans and leases receivable were as follows: September 30, 2018 September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 1,509,849 $ 255,308 Consumer finance 335,361 140,229 Tax services 1,073 192 Total National Lending 1,846,283 395,729 Community Banking Commercial and multi-family real estate 748,579 585,510 1-4 family real estate 223,482 196,706 Agricultural 60,498 95,394 Commercial operating 42,311 30,718 Consumer 23,836 22,775 Total Community Banking 1,098,706 931,103 Total gross loans and leases receivable 2,944,989 1,326,832 Allowance for loan and lease losses (13,040 ) (7,534 ) Net deferred loan origination fees (250 ) (1,461 ) Total loans and leases receivable, net $ 2,931,699 $ 1,317,837 |
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans | Annual activity in the allowance for loan and lease losses was as follows: Year ended September 30, 2018 2017 2016 (Dollars in Thousands) Beginning balance $ 7,534 $ 5,635 $ 6,255 Provision for loan and lease losses 29,433 10,589 4,605 Recoveries 2,037 307 147 Charge offs (25,964 ) (8,997 ) (5,372 ) Ending balance $ 13,040 $ 7,534 $ 5,635 Allowance for loan and lease losses and recorded investment in loans and leases at September 30, 2018 and 2017 were as follows: Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 800 $ 1,976 $ (2,643 ) $ 1,169 $ 1,302 Consumer finance — 5,113 (1,443 ) — 3,670 Tax services 5 21,344 (21,802 ) 453 — Total National Lending 805 28,433 (25,888 ) 1,622 4,972 Community Banking Commercial and multi-family real estate 2,670 3,377 — — 6,047 1-4 family real estate 803 (168 ) (45 ) — 590 Agricultural 2,574 (1,769 ) — 411 1,216 Commercial operating 150 23 — — 173 Consumer 6 64 (31 ) 3 42 Total Community Banking 6,203 1,527 (76 ) 414 8,068 Unallocated 527 (527 ) — — — Total 7,534 29,433 (25,964 ) 2,037 13,040 Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 589 $ 776 $ (626 ) $ 61 $ 800 Consumer finance — — — — — Tax services 6 7,612 (7,842 ) 229 5 Total National Lending 595 8,388 (8,468 ) 290 805 Community Banking Commercial and multi-family real estate 2,198 610 (138 ) — 2,670 1-4 family real estate 654 149 — — 803 Agricultural 1,474 1,088 — 12 2,574 Commercial operating 110 425 (390 ) 5 150 Consumer 51 (44 ) (1 ) — 6 Total Community Banking 4,487 2,228 (529 ) 17 6,203 Unallocated 553 (26 ) — — 527 Total 5,635 10,589 (8,997 ) 307 7,534 Allowance Loans and Leases Recorded Investment Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 588 $ 714 $ 1,302 $ 13,612 $ 1,496,237 $ 1,509,849 Consumer finance — 3,670 3,670 — 335,361 335,361 Tax services — — — — 1,073 1,073 Total National Lending 588 4,384 4,972 13,612 1,832,671 1,846,283 Community Banking Commercial and multi-family real estate — 6,047 6,047 405 748,174 748,579 1-4 family real estate — 590 590 94 223,388 223,482 Agricultural — 1,216 1,216 1,454 59,044 60,498 Commercial operating — 173 173 46 42,265 42,311 Consumer — 42 42 — 23,836 23,836 Total Community Banking — 8,068 8,068 1,999 1,096,707 1,098,706 Total 588 12,452 13,040 15,611 2,929,378 2,944,989 Allowance Loans and Leases Recorded Investment Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ — $ 800 $ 800 $ — $ 255,308 $ 255,308 Consumer finance — — — — 140,229 140,229 Tax services — 5 5 — 192 192 Total National Lending — 805 805 — 395,729 395,729 Community Banking Commercial and multi-family real estate — 2,670 2,670 1,109 584,401 585,510 1-4 family real estate — 803 803 72 196,634 196,706 Agricultural — 2,574 2,574 — 95,394 95,394 Commercial operating — 150 150 — 30,718 30,718 Consumer — 6 6 — 22,775 22,775 Total Community Banking — 6,203 6,203 — 931,103 931,103 Unallocated — 527 527 — — — Total — 7,534 7,534 1,181 1,325,651 1,326,832 |
Asset Classification of Loans | The asset classification of loans and leases at September 30, 2018 , and 2017 , were as follows: Asset Classification Pass Watch Special Mention Substandard Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 1,379,902 $ — $ 116,334 $ 13,613 1,509,849 Consumer finance 335,361 — — — 335,361 Tax services 1,073 — — — 1,073 Total National Lending 1,716,336 — 116,334 13,613 1,846,283 Community Banking Commercial and multi-family real estate 736,134 12,251 194 — 748,579 1-4 family real estate 222,883 281 239 79 223,482 Agricultural 42,292 2,447 4,872 10,887 60,498 Commercial operating 42,311 — — — 42,311 Consumer 23,580 256 — — 23,836 Total Community Banking 1,067,200 15,235 5,305 10,966 1,098,706 Total Loans and Leases $ 2,783,536 $ 15,235 $ 121,639 $ 24,579 $ 2,944,989 Asset Classification Pass Watch Special Mention Substandard Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 255,308 $ — $ — $ — 255,308 Consumer finance 140,229 — — — 140,229 Tax services 192 — — — 192 Total National Lending 395,729 — — — 395,729 Community Banking Commercial and multi-family real estate 574,730 10,200 201 379 585,510 1-4 family real estate 195,838 525 247 96 196,706 Agricultural 45,770 6,547 2,939 40,138 95,394 Commercial operating 30,718 — — — 30,718 Consumer 22,775 — — — 22,775 Total Community Banking 869,831 17,272 3,387 40,613 931,103 Total Loans and Leases $ 1,265,560 $ 17,272 $ 3,387 $ 40,613 $ 1,326,832 |
Past Due Loans | Past due loans and leases at September 30, 2018 and 2017 were as follows : Accruing and Non-accruing Loans and Leases Non-performing Loans and Leases Past Due Loans and Leases 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Non-accrual balance Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance 20,708 3,702 5,996 30,406 1,479,443 1,509,849 3,801 2,864 6,665 Consumer finance 3,209 1,595 2,384 7,188 328,173 335,361 2,384 — 2,384 Tax services — — 1,073 1,073 — 1,073 1,073 — 1,073 Total National Lending 23,917 5,297 9,453 38,667 1,807,616 1,846,283 7,258 2,864 10,122 Community Banking Commercial and multi-family real estate — — — — 748,579 748,579 — — — 1-4 family real estate 105 — 79 184 223,298 223,482 79 — 79 Agricultural — — — — 60,498 60,498 — — — Commercial operating — — — — 42,311 42,311 — — — Consumer — — — — 23,836 23,836 — — — Total Community Banking 105 — 79 184 1,098,522 1,098,706 79 — 79 Total Loans and Leases 24,022 5,297 9,532 38,851 2,906,138 2,944,989 7,337 2,864 10,201 Accruing and Non-accruing Loans and Leases Non-performing Loans and Leases Past Due Loans and Leases 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Non-accrual balance Total Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 1,509 $ 2,442 $ 1,205 $ 5,156 $ 250,152 $ 255,308 $ 1,205 $ — $ 1,205 Consumer finance 2,503 541 1,387 4,431 135,798 140,229 1,387 — 1,387 Tax services — — — — 192 192 — — — Total National Lending 4,012 2,983 2,592 9,587 386,142 395,729 2,592 — 2,592 Community Banking Commercial and multi-family real estate 295 — 390 685 584,825 585,510 — 685 685 1-4 family real estate 370 79 — 449 196,257 196,706 — — — Agricultural — — 34,295 34,295 61,099 95,394 34,295 — 34,295 Commercial operating — — — — 30,718 30,718 — — — Consumer 9 17 19 45 22,730 22,775 19 — 19 Total Community Banking 674 96 34,704 35,474 895,629 931,103 34,314 685 34,999 Total Loans and Leases $ 4,686 $ 3,079 $ 37,296 $ 45,061 $ 1,281,771 $ 1,326,832 $ 36,906 $ 685 $ 37,591 |
Impaired Loans | Impaired loans and leases at September 30, 2018 and 2017 were as follows: September 30, 2018 Recorded Balance Unpaid Principal Balance Specific Allowance Loans and leases without a specific valuation allowance (Dollars in Thousands) National Lending Commercial finance $ 8,199 $ 8,529 $ — Total National Lending 8,199 8,529 — Community Banking Commercial and multi-family real estate 405 405 — 1-4 family real estate 94 94 — Agricultural 1,454 1,454 — Consumer 46 46 — Total Community Banking 1,999 1,999 — Total 10,198 10,528 — Loans and leases with a specific valuation allowance National Lending Commercial finance $ 5,413 $ 5,663 $ 588 Total National Lending 5,413 5,663 588 Total 5,413 5,413 588 September 30, 2017 Recorded Balance Unpaid Principal Balance Specific Allowance Loans and leases without a specific valuation allowance (Dollars in Thousands) Community Banking Commercial and multi-family real estate $ 1,109 $ 1,109 $ — 1-4 family real estate 72 72 — Total Community Banking 1,181 1,181 — Total $ 1,181 $ 1,181 $ — Loans and leases with a specific valuation allowance Total $ — $ — $ — Cash interest collected on impaired loans and leases was not material during the years ended September 30, 2018 and 2017 . The following table provides the average recorded investment in impaired loans and leases for the years ended September 30, 2018 and 2017 . Year Ended September 30, 2018 2017 Average Recorded Investment Average Recorded Investment (Dollars in Thousands) National Lending Commercial finance $ 1,134 $ — Total National Lending 1,134 — Community Banking Commercial and multi-family real estate 673 883 1-4 family real estate 159 176 Agricultural 1,652 414 Commercial operating — 202 Consumer 67 — Total Community Banking 2,551 1,675 Total loans and leases 3,685 1,675 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Unpaid Principal Balances of Loans Serviced for Others | Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at fiscal year-end were as follows: September 30, 2018 2017 2016 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 2,338 $ 3,162 $ 3,980 SBA/USDA 98,942 — — Other 32,726 18,649 15,452 $ 134,006 $ 21,811 $ 19,432 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS | A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2018 , 2017 and 2016 is presented below. All share and per share data reported for all periods presented in the table below has been adjusted to reflect the 3-for-1 forward stock split. 2018 2017 2016 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 51,620 $ 44,917 $ 33,220 Weighted average common shares outstanding 30,737,499 27,741,276 25,331,868 Basic income per common share $ 1.68 $ 1.62 $ 1.31 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 51,620 $ 44,917 $ 33,220 Weighted average common shares outstanding 30,737,499 27,741,276 25,331,868 Outstanding options - based upon the two-class method 115,551 166,956 160,170 Weighted average diluted common shares outstanding 30,853,050 27,908,232 25,492,038 Diluted income per common share $ 1.67 $ 1.61 $ 1.30 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities available for sale at September 30, 2018 and 2017 were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 45,591 $ 1 $ (1,255 ) $ 44,337 Obligation of states and political subdivisions 17,154 49 (293 ) 16,910 Non-bank qualified obligations of states and political subdivisions 1,140,884 826 (31,825 ) 1,109,885 Asset-backed securities 310,700 2,585 (257 ) 313,028 Mortgage-backed securities 378,301 — (14,236 ) 364,065 Total debt securities 1,892,630 3,461 (47,866 ) 1,848,225 Common equities and mutual funds 3,172 635 (7 ) 3,800 Total available for sale securities $ 1,895,802 $ 4,096 $ (47,873 ) $ 1,852,025 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 57,046 $ 825 $ — $ 57,871 Non-bank qualified obligations of states and political subdivisions 938,883 14,983 (3,037 ) 950,829 Asset-backed securities 94,451 2,381 — 96,832 Mortgage-backed securities 588,918 1,259 (3,723 ) 586,454 Total debt securities 1,679,298 19,448 (6,760 ) 1,691,986 Common equities and mutual funds 1,009 436 — 1,445 Total available for sale securities $ 1,680,307 $ 19,884 $ (6,760 ) $ 1,693,431 |
Securities Held to Maturity | Securities held to maturity at September 30, 2018 and 2017 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 164,304 $ — $ (10,758 ) $ 153,546 Mortgage-backed securities 7,850 — (422 ) 7,428 Total held to maturity securities $ 172,154 $ (11,180 ) $ 160,974 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,247 $ 157 $ (36 ) $ 19,368 Non-bank qualified obligations of states and political subdivisions 430,593 4,744 (2,976 ) 432,361 Mortgage-backed securities 113,689 — (1,233 ) 112,456 Total held to maturity securities $ 563,529 $ 4,901 $ (4,245 ) $ 564,185 |
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position | Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2018 , and 2017 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2018 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Small business administration securities $ 43,097 $ (1,255 ) $ — $ — $ 43,097 $ (1,255 ) Obligations of states and political subdivisions 11,036 (279 ) 881 (14 ) 11,917 (293 ) Non-bank qualified obligations of states and political subdivisions 626,693 (13,539 ) 358,095 (18,286 ) 984,788 (31,825 ) Asset-backed securities 146,638 (257 ) — — 146,638 (257 ) Mortgage-backed securities 121,217 (3,292 ) 242,849 (10,944 ) 364,066 (14,236 ) Total debt securities 948,681 (18,622 ) 601,825 (29,244 ) 1,550,506 (47,866 ) Common equities and mutual funds 1,818 (7 ) — — 1,818 (7 ) Total available for sale securities $ 950,499 $ (18,629 ) $ 601,825 $ (29,244 ) $ 1,552,324 $ (47,873 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 280,900 $ (2,887 ) $ 5,853 $ (150 ) $ 286,753 $ (3,037 ) Mortgage-backed securities 237,897 (1,625 ) 100,287 (2,098 ) 338,184 (3,723 ) Total available for sale securities $ 518,797 $ (4,512 ) $ 106,140 $ (2,248 ) $ 624,937 $ (6,760 ) |
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position | Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2018 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 6,178 $ (287 ) $ 147,368 $ (10,471 ) $ 153,546 $ (10,758 ) Mortgage-backed securities — — 7,428 (422 ) 7,428 (422 ) Total held to maturity securities 6,178 (287 ) 154,796 (10,893 ) 160,974 (11,180 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,364 $ (6 ) $ 4,089 $ (30 ) $ 5,453 $ (36 ) Non-bank qualified obligations of states and political subdivisions 202,018 (2,783 ) 6,206 (193 ) 208,224 (2,976 ) Mortgage-backed securities 112,456 (1,233 ) — — 112,456 (1,233 ) Total held to maturity securities $ 315,838 $ (4,022 ) $ 10,295 $ (223 ) $ 326,133 $ (4,245 ) |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2018 (Dollars in Thousands) Due in one year or less $ 2,532 $ 2,529 Due after one year through five years 41,415 41,504 Due after five years through ten years 352,099 350,143 Due after ten years 1,118,283 1,089,984 1,514,329 1,484,160 Mortgage-backed securities 378,301 364,065 Common equities and mutual funds 3,172 3,800 Total available for sale securities $ 1,895,802 $ 1,852,025 AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 36,586 37,674 Due after five years through ten years 347,831 358,198 Due after ten years 705,963 709,660 1,090,380 1,105,532 Mortgage-backed securities 588,918 586,454 Common equities and mutual funds 1,009 1,445 Total available for sale securities $ 1,680,307 $ 1,693,431 Held To Maturity AMORTIZED COST FAIR VALUE At September 30, 2018 (Dollars in Thousands) Due after ten years 164,304 153,546 164,304 153,546 Mortgage-backed securities 7,850 7,428 Total held to maturity securities $ 172,154 $ 160,974 AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ 1,483 $ 1,480 Due after one year through five years 17,926 18,160 Due after five years through ten years 144,996 147,832 Due after ten years 285,435 284,257 449,840 451,729 Mortgage-backed securities 113,689 112,456 Total held to maturity securities $ 563,529 $ 564,185 |
Summary of Activities Related to Sale of Securities Available for Sale | Activities related to the sale of securities are summarized below. 2018 2017 2016 Year ended (Dollars in Thousands) Available For Sale Proceeds from sales $ 596,758 $ 457,306 $ 285,508 Gross gains on sales 2,551 4,091 1,459 Gross losses on sales 10,728 4,628 1,785 Net loss on available for sale securities (8,177 ) (537 ) (326 ) Held To Maturity Net carrying amount of securities sold $ — $ 5,826 $ — Gross realized gain on sales — 92 — Gross realized losses on sales — 48 — Net gain on held to maturity securities — 44 — |
PREMISES, FURNITURE, AND EQUI_2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Year-End Premises and Equipment | Year-end premises and equipment were as follows: September 30, 2018 2017 (Dollars in Thousands) Land $ 2,932 $ 1,578 Buildings 27,359 10,642 Furniture, fixtures, and equipment 56,438 46,934 Capitalized leases 2,259 2,259 88,988 61,413 Less: accumulated depreciation and amortization (48,530 ) (42,093 ) Net book value $ 40,458 $ 19,320 |
TIME CERTIFICATES OF DEPOSITS (
TIME CERTIFICATES OF DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Certificates of Deposits | At September 30, 2018 , the scheduled maturities of time certificates of deposits were as follows for the years ending: As of September 30, (Dollars in Thousands) 2019 $ 1,562,801 2020 125,581 2021 16,623 2022 6,929 2023 1,048 Total (1) 1,712,982 (1) As of September 30, 2018, the Company had $1.44 billion of certificates of deposits which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition. |
SHORT TERM DEBT AND LONG TERM_2
SHORT TERM DEBT AND LONG TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short Term Debt September 30, 2018 2017 Overnight federal funds purchased $ 422,000 $ 987,000 Short-term FHLB advances — 415,000 Short-term capital lease 65 62 Repurchase agreements 3,694 2,472 Total 425,759 1,404,534 |
Schedule of Repurchase Agreements | An analysis of securities sold under agreements to repurchase at September 30, 2018 and 2017 follows: September 30, 2018 2017 (Dollars in Thousands) Highest month-end balance $ 3,740 $ 3,782 Average balance 2,557 2,225 Weighted average interest rate for the year 2.05 % 0.98 % Weighted average interest rate at year end 2.48 % 1.59 % |
Schedule of Long-term Debt | Long Term Debt September 30, 2018 2017 (Dollars in Thousands) Long-term FHLB advances $ — $ — Trust preferred securities 13,661 10,310 Subordinated debentures (net of issuance costs) 73,491 73,347 Long-term capital lease 1,811 1,876 Total 88,963 85,533 |
Scheduled maturities of FHLB advances | At September 30, 2018, the scheduled maturities of the Company's long-term debt were as follows for the years ending: September 30, (Dollars in Thousands) Trust preferred securities Subordinated debentures Long-term capital lease Total 2019 $ — $ — $ — $ — 2020 — — 73 73 2021 — — 77 77 2022 — — 82 82 2023 — — 87 87 Thereafter 13,661 73,491 1,492 88,644 Total long-term debt $ 13,661 $ 73,491 $ 1,811 $ 88,963 |
EMPLOYEE STOCK OWNERSHIP AND _2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
Year-End ESOP Shares | Year-end ESOP shares are as follows: At September 30, 2018 2017 2016 (Dollars in Thousands) Allocated shares 812,346 768,657 788,616 Unearned shares — — Total ESOP shares 812,346 768,657 788,616 Fair value of unearned shares $ — $ — $ — |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded | The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2018 , 2017 and 2016. Year Ended September 30, 2018 2017 2016 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $3,139, $3,907, and $192, respectively $ 7,878 $ 6,486 $ 559 |
Activity of Options | The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2018 and 2017 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2017 227,271 $ 7.54 2.28 $ 4,225 Granted — — — — Exercised (71,310 ) 5.48 — 1,909 Forfeited or expired — — — — Options outstanding, September 30, 2018 155,961 $ 8.48 1.78 $ 2,974 Options exercisable end of year 155,961 $ 8.48 1.78 $ 2,974 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 376,680 $ 8.58 2.68 $ 4,379 Granted — — — — Exercised (88,158 ) 11.13 — 1,790 Forfeited or expired (61,251 ) 9 — 1,464 Options outstanding, September 30, 2017 227,271 $ 7.54 2.28 $ 4,225 Options exercisable end of year 227,271 $ 7.54 2.28 $ 4,225 |
Activity of Nonvested (Restricted) Shares | Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2017 913,578 $ 28.99 Granted 354,108 30.36 Vested (253,944 ) 27.49 Forfeited or expired (7,929 ) 23.27 Nonvested shares outstanding, September 30, 2018 1,005,813 $ 29.89 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 61,968 $ 13.79 Granted 949,812 29.16 Vested (87,405 ) 21.41 Forfeited or expired (10,797 ) 18.80 Nonvested shares outstanding, September 30, 2017 913,578 $ 28.99 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: Years ended September 30, 2018 2017 2016 (Dollars in Thousands) Federal: Current $ (4,023 ) $ 12,153 $ 4,410 Deferred 5,895 (5,040 ) (440 ) 1,872 7,113 3,970 State: Current 2,611 4,366 1,422 Deferred 634 (1,246 ) 210 3,245 3,120 1,632 Income tax expense $ 5,117 $ 10,233 $ 5,602 |
Reconciliation of Total Income Tax Expense | The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense. Years ended September 30, 2018 2017 2016 (Dollars in Thousands) Amount Rate Amount Rate Amount Rate Statutory federal income tax expense and rate $ 14,082 24.5 % $ 19,303 35.0 % $ 13,588 35.0 % Change in tax rate resulting from: State income taxes net of federal benefits 2,461 4.3 % 2,014 3.7 % 933 2.4 % Tax exempt income (6,968 ) (12.1 )% (9,991 ) (18.1 )% (8,257 ) (21.3 )% Nondeductible acquisition costs 1,295 2.3 % — — % — — % General business credits (3,948 ) (6.9 )% — — % — — % Tax Reform 3,849 6.7 % — — % — — % Amended Crestmark Bancorp historical tax return (4,644 ) (8.1 )% — — % — — % Other, net (1,010 ) (1.7 )% (1,093 ) (2.0 )% (662 ) (1.7 )% Total income tax expense $ 5,117 9.0 % $ 10,233 18.6 % $ 5,602 14.4 % |
Components of Net Deferred Tax Asset (Liability) | The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities at September 30, 2018 and 2017 were: September 30, 2018 2017 (Dollars in Thousands) Deferred tax assets: Bad debts $ 3,224 $ 2,832 Deferred compensation 3,495 1,548 Stock based compensation 3,758 3,436 AMT Credit — 1,869 Intangibles — 5,235 Net unrealized losses on securities available for sale 10,663 — Valuation adjustments 6,991 — General business credits (1) 12,243 — Accrued expenses 3,144 1,188 Other assets 1,629 1,579 45,147 17,687 Deferred tax liabilities: Premises and equipment (347 ) (1,713 ) Intangibles (4,231 ) — Net unrealized gains on securities available for sale — (4,934 ) Deferred income (2,070 ) — Leased assets (17,985 ) — Other liabilities (1,777 ) (1,939 ) (26,410 ) (8,586 ) Net deferred tax assets $ 18,737 $ 9,101 (1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the year ended September 30, 2018 or in previous periods by Crestmark prior to acquisition. These credits expire on September 30, 2037. |
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2018 , and 2017 follows: September 30, 2018 2017 (Dollars in Thousands) Balance at beginning of year $ 645 $ 525 Additions for tax positions related to the current year — 192 Additions for tax positions related to the prior years — 31 Reductions for tax positions related to prior years (211 ) (103 ) Balance at end of year $ 434 $ 645 |
CAPITAL REQUIREMENTS AND REST_2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
Bank's Actual and Required Capital Amount and Ratios | The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company Bank Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions September 30, 2018 Tier 1 leverage ratio 8.50 % 9.75 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 10.56 12.50 4.50 6.50 Tier 1 capital ratio 10.97 12.56 6.00 8.00 Total qualifying capital ratio 13.18 12.89 8.00 10.00 September 30, 2017 Tier 1 leverage ratio 7.64 % 9.64 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 13.97 18.22 4.50 6.50 Tier 1 capital ratio 14.46 18.22 6.00 8.00 Total qualifying capital ratio 18.41 18.59 8.00 10.00 |
Reconciliation of Required Capital Amount and Ratios | The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2018 (Dollars in Thousands) Total stockholders' equity $ 747,726 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 299,456 LESS: Certain other intangible assets 64,716 LESS: Net unrealized gains (losses) on available-for-sale securities (33,114 ) LESS: Non-controlling interest 3,574 LESS: Unrealized currency gains (losses) 3 Common Equity Tier 1 (1) 413,091 Long-term debt and other instruments qualifying as Tier 1 13,661 Tier 1 minority interest not included in common equity tier 1 capital 2,118 Total Tier 1 capital 428,870 Allowance for loan and lease losses 13,185 Subordinated debentures (net of issuance costs) 73,491 Total qualifying capital 515,546 (1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Total Minimum Rental Commitment for Operating and Capital Leases | The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the years presented below as of September 30, 2018 . Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2019 $ 3,854 $ 179 2020 3,656 182 2021 3,429 182 2022 2,955 182 2023 2,561 182 Thereafter 21,428 2,058 Total Leases Commitments $ 37,883 $ 2,965 Amounts representing interest $ 1,089 Present value of net minimum lease payments 1,876 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information of Entity | Payments Banking Corporate Services/Other Total Year Ended September 30, 2018 Interest income $ 24,487 $ 97,817 $ 36,230 $ 158,534 Interest expense 1,646 7,012 19,327 27,985 Net interest income 22,841 90,805 16,903 130,549 Provision for loan and lease losses 21,344 8,088 — 29,432 Non-interest income 176,250 13,950 (5,675 ) 184,525 Non-interest expense 126,610 46,982 54,640 228,232 Income (loss) before income tax expense (benefit) 51,137 49,685 (43,412 ) 57,410 Total assets 186,502 3,413,409 2,235,156 5,835,067 Total goodwill 87,145 216,125 — 303,270 Total deposits 2,412,986 746,003 1,271,998 4,430,987 Payments Banking Corporate Services/Other Total Year Ended September 30, 2017 Interest income $ 13,845 $ 52,231 $ 42,027 $ 108,103 Interest expense 503 2,723 11,647 14,873 Net interest income 13,342 49,508 30,380 93,230 Provision for loan losses 7,613 2,976 — 10,589 Non-interest income 165,707 4,685 1,780 172,172 Non-interest expense 132,984 24,520 42,159 199,663 Income (loss) before income tax expense (benefit) 38,452 26,697 (9,999 ) 55,150 Total assets 185,521 1,343,968 3,698,843 5,228,332 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,436,893 229,969 556,562 3,223,424 Payments Banking Corporate Services/Other Total Year Ended September 30, 2016 Interest income $ 9,711 $ 38,321 $ 33,364 $ 81,396 Interest expense 181 1,331 2,579 4,091 Net interest income 9,530 36,990 30,785 77,305 Provision for loan losses 971 3,634 — 4,605 Non-interest income 95,261 4,280 1,229 100,770 Non-interest expense 77,411 23,001 34,236 134,648 Income (loss) before income tax expense (benefit) 26,409 14,635 (2,222 ) 38,822 Total assets 87,311 946,420 2,972,688 4,006,419 Total goodwill 25,350 11,578 — 36,928 Total deposits 2,131,042 299,030 10 2,430,082 |
PARENT COMPANY FINANCIAL STAT_2
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2018 2017 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 28,209 $ 14,569 Investment securities held to maturity 411 310 Investment in subsidiaries 823,215 521,021 Other assets 124 96 Total assets $ 851,959 $ 535,996 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Long term debt $ 87,152 $ 83,657 Other liabilities 17,081 17,843 Total liabilities $ 104,233 $ 101,500 STOCKHOLDERS' EQUITY Common stock $ 393 $ 288 Additional paid-in capital 565,811 258,144 Retained earnings 213,048 167,164 Accumulated other comprehensive income (loss) (33,111 ) 9,166 Treasury stock, at cost (1,989 ) (266 ) Total equity attributable to parent 744,152 434,496 Non-controlling interest 3,574 — Total stockholders' equity 747,726 434,496 Total liabilities and stockholders' equity $ 851,959 $ 535,996 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS Years Ended September 30, 2018 2017 2016 (Dollars in Thousands) Interest expense $ 5,061 $ 4,959 $ 1,022 Other expense 663 440 382 Total expense 5,724 5,399 1,404 Loss before income taxes and equity in undistributed net income of subsidiaries (5,724 ) (5,399 ) (1,404 ) Income tax (benefit) (1,504 ) (1,935 ) (519 ) Loss before equity in undistributed net income of subsidiaries (4,220 ) (3,464 ) (885 ) Equity in undistributed net income of subsidiaries 55,840 48,381 34,105 Net income attributable to parent $ 51,620 $ 44,917 $ 33,220 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2018 2017 2016 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Income attributable to parent $ 51,620 $ 44,917 $ 33,220 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion, net 143 136 (22 ) Equity in undistributed net income of subsidiaries (55,840 ) (48,381 ) (34,105 ) Stock compensation 11,123 10,393 426 Other assets 232 7 (5 ) Accrued expenses and other liabilities (860 ) 16,636 541 Cash dividend received 45,315 — — Net cash provided by operating activities 51,733 23,708 55 CASH FLOWS FROM INVESTING ACTIVITES Held to Maturity: Proceeds from maturities and principal repayments 8 — — Capital contributions to subsidiaries (20,322 ) (82,820 ) (81,000 ) Net cash (used in) investing activities (20,314 ) (82,820 ) (81,000 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (5,736 ) (4,839 ) (4,389 ) Payment: Short term debt (11,642 ) — — Long term debt (258 ) — 75,000 Debt issuance costs — — (1,767 ) Purchase of shares by ESOP 1,606 1,174 — Proceeds/(payment): Contingent consideration - equity — 24,142 — Exercise of stock options & issuance of common stock 148 650 13,537 Issuance of restricted stock 4 12 — Issuance of commons shares due to acquisitions 295,767 37,296 — Cash acquired due to acquisitions 697 — — Net increase in investment in subsidiaries (295,767 ) — — Shares repurchased for tax withholdings on stock compensation (2,598 ) (470 ) — Net cash provided by (used in) financing activities (17,779 ) 57,965 82,381 Net change in cash and cash equivalents $ 13,640 $ (1,147 ) $ 1,436 CASH AND CASH EQUIVALENTS Beginning of year 14,569 15,716 14,280 End of year $ 28,209 $ 14,569 $ 15,716 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands, Except Per Share Data) Fiscal Year 2018 Interest and dividend income $ 30,857 $ 33,371 $ 34,104 $ 60,202 Interest expense 4,661 5,966 5,693 11,665 Net interest income 26,196 27,405 28,411 48,537 Provision for loan and lease losses 1,068 18,343 5,315 4,706 Non-interest income 29,268 97,419 33,225 24,613 Net Income attributable to parent 4,670 31,436 6,792 8,722 Earnings per common share Basic $ 0.15 $ 1.07 $ 0.22 $ 0.24 Diluted 0.15 1.06 0.22 0.24 Dividend declared per share 0.04 0.04 0.04 0.05 Fiscal Year 2017 Interest and dividend income $ 22,575 $ 27,718 $ 28,861 $ 28,949 Interest expense 2,742 3,752 3,918 4,461 Net interest income 19,833 23,966 24,943 24,488 Provision (recovery) for loan losses 843 8,649 1,240 (144 ) Non-interest income 19,349 92,170 30,820 29,833 Net Income attributable to parent 1,244 32,142 9,787 1,744 Earnings per common share Basic $ 0.05 $ 1.15 $ 0.35 $ 0.07 Diluted 0.05 1.14 0.35 0.07 Dividend declared per share 0.04 0.04 0.04 0.04 Fiscal Year 2016 Interest and dividend income $ 18,275 $ 20,629 $ 20,763 $ 21,729 Interest expense 720 691 844 1,836 Net interest income 17,555 19,938 19,919 19,893 Provision for loan losses 786 1,173 2,098 548 Non-interest income 16,834 40,901 23,807 19,228 Net Income attributable to parent 4,058 14,283 8,873 6,006 Earnings per common share Basic $ 0.16 $ 0.57 $ 0.35 $ 0.23 Diluted 0.16 0.56 0.35 0.23 Dividend declared per share 0.04 0.04 0.04 0.04 |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Values of Securities Available for Sale and Held to Maturity | The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2018 and 2017 . Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the Consolidated Statements of Financial Condition. Fair Value At September 30, 2018 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Small business administration securities 44,337 — 44,337 — — — — — Obligations of states and political subdivisions 16,910 — 16,910 — — — — — Non-bank qualified obligations of states and political subdivisions 1,109,885 — 1,109,885 — 153,546 — 153,546 — Asset-backed securities 313,028 — 313,028 — — — — — Mortgage-backed securities 364,065 — 364,065 — 7,428 — 7,428 — Total debt securities 1,848,225 — 1,848,225 — 160,974 — 160,974 — Common equities and mutual funds 3,800 3,800 — — — — — — Total securities $ 1,852,025 $ 3,800 $ 1,848,225 $ — $ 160,974 $ — $ 160,974 $ — Fair Value At September 30, 2017 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Small business administration securities 57,871 — 57,871 — — — — — Obligations of states and political subdivisions — — — — 19,368 — 19,368 — Non-bank qualified obligations of states and political subdivisions 950,829 — 950,829 — 432,361 — 432,361 — Asset-backed securities 96,832 — 96,832 — — — — — Mortgage-backed securities 586,454 — 586,454 — 112,456 — 112,456 — Total debt securities 1,691,986 — 1,691,986 — 564,185 — 564,185 — Common equities and mutual funds 1,445 1,445 — — — — — — Total securities $ 1,693,431 $ 1,445 $ 1,691,986 $ — $ 564,185 $ — $ 564,185 $ — |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis as of September 30, 2018 and 2017 . Fair Value at September 30, 2018 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Commercial finance $ 4,825 $ — $ — $ 4,825 Total National Lending 4,825 — — 4,825 Total impaired loans and leases 4,825 — — 4,825 Foreclosed Assets, net 31,638 — — 31,638 Total $ 36,463 $ — $ — $ 36,463 Fair Value At September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2018 Fair Value at September 30, 2017 Valuation Technique Unobservable Input Impaired Loans and Leases, net $ 4,825 $ — Market approach Appraised values (1) Foreclosed Assets, net 31,638 292 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10% . |
Carrying Amount and Estimated Fair Value of Financial Instruments | The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2018 and 2017 . September 30, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 99,977 $ 99,977 $ 99,977 $ — $ — Securities available for sale 1,852,025 1,852,025 3,800 1,848,225 — Securities held to maturity 172,154 160,974 — 160,974 — Total securities 2,024,179 2,012,999 3,800 2,009,199 — Loans held for sale 15,606 15,606 — 15,606 — Loans and leases receivable: Commercial finance 1,509,849 1,506,969 — — 1,506,969 Consumer finance 335,361 342,931 — — 342,931 Tax services 1,073 1,073 — — 1,073 Total National Lending 1,846,283 1,850,973 — — 1,850,973 Commercial and multi-family real estate 748,579 731,291 — — 731,291 One to four family residential mortgage 223,482 220,697 — — 220,697 Agricultural 60,498 58,849 — — 58,849 Commercial operating 42,311 41,912 — — 41,912 Consumer 23,836 24,033 — — 24,033 Total Community Banking 1,098,706 1,076,782 — — 1,076,782 Total loans and leases receivable 2,944,989 2,927,755 — — 2,927,755 Federal Home Loan Bank stock 23,400 23,400 — 23,400 — Accrued interest receivable 22,016 22,016 22,016 — — Financial liabilities Non-interest bearing demand deposits 2,405,274 2,405,274 2,405,274 — — Interest bearing demand deposits, savings, and money markets 218,347 218,347 218,347 — — Certificates of deposits 276,180 273,800 — 273,800 — Wholesale non-maturing deposits 94,384 94,384 94,384 — — Wholesale certificates of deposits 1,436,802 1,432,146 — 1,432,146 — Total deposits 4,430,987 4,423,951 2,718,005 1,705,946 — Advances from Federal Home Loan Bank — — — — — Federal funds purchased 422,000 422,000 422,000 — — Securities sold under agreements to repurchase 3,694 3,694 — 3,694 — Capital leases 1,876 1,876 — 1,876 — Trust preferred securities 13,661 13,866 — 13,866 — Subordinated debentures 73,491 75,563 — 75,563 — Accrued interest payable 7,794 7,794 7,794 — — September 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 1,267,586 $ 1,267,586 $ 1,267,586 $ — $ — Securities available for sale 1,693,431 1,693,431 1,445 1,691,986 — Securities held to maturity 563,529 564,185 — 564,185 — Total securities 2,256,960 2,257,616 1,445 2,256,171 — Loans and leases receivable: Commercial finance 255,308 255,813 — — 255,813 Consumer finance 140,229 141,958 — — 141,958 Tax services 192 192 — — 192 Total National Lending 395,729 397,963 — — 397,963 Commercial and multi-family real estate 585,510 576,330 — — 576,330 One to four family residential mortgage 196,706 196,970 — — 196,970 Agricultural 95,394 94,454 — — 94,454 Commercial operating 30,718 30,682 — — 30,682 Consumer 22,775 22,003 — — 22,003 Total Community Banking 931,103 920,439 — — 920,439 Total loans and leases receivable 1,326,832 1,318,402 — — 1,318,402 Federal Home Loan Bank stock 61,123 61,123 — 61,123 — Accrued interest receivable 19,380 19,380 19,380 — — Financial liabilities Non-interest bearing demand deposits 2,454,057 2,454,057 2,454,057 — — Interest bearing demand deposits, savings, and money markets 169,557 169,557 169,557 — — Certificates of deposit 123,637 123,094 — 123,094 — Wholesale non-maturing deposits 18,245 18,245 18,245 — — Wholesale certificates of deposits 457,928 457,509 — 457,509 — Total deposits 3,223,424 3,222,462 2,641,859 580,603 — Advances from Federal Home Loan Bank 415,000 415,003 — 415,003 — Federal funds purchased 987,000 987,000 987,000 — — Securities sold under agreements to repurchase 2,472 2,472 — 2,472 — Capital leases 1,938 1,938 — 1,938 — Trust preferred 10,310 10,447 — 10,447 — Subordinated debentures 73,347 76,500 — 76,500 — Accrued interest payable 2,280 2,280 2,280 — — |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill and Intangible Assets | The carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2018 and 2017 are as follows: September 30, 2018 2017 (Dollars in Thousands) Goodwill Beginning balance $ 98,723 $ 36,928 Acquisitions during the period 204,547 61,795 Write-offs during the period — — Ending balance $ 303,270 $ 98,723 The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2018 . Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Acquisitions during the period 3,634 — 24,278 449 28,361 Amortization during the period (698 ) (485 ) (7,530 ) (928 ) (9,641 ) Write-offs during the period — — — (179 ) (179 ) Balance as of September 30, 2018 $ 12,987 $ 1,297 $ 48,455 $ 7,980 $ 70,719 Balance upon acquisition $ 14,624 $ 2,480 $ 82,088 $ 10,951 $ 110,143 Accumulated amortization $ (1,637 ) $ (1,183 ) $ (23,385 ) $ (2,263 ) $ (28,468 ) Accumulated impairment $ (10,248 ) $ (708 ) $ (10,956 ) Balance as of September 30, 2018 $ 12,987 $ 1,297 $ 48,455 $ 7,980 $ 70,719 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,947 46,397 Amortization during the period (598 ) (525 ) (10,405 ) (835 ) (12,363 ) Write-offs during the period — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Balance upon acquisition $ 10,990 $ 2,480 $ 57,810 $ 10,502 $ 81,782 Accumulated amortization (939 ) (698 ) (15,855 ) (1,335 ) (18,827 ) Accumulated impairment — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded an immaterial impairment charge during the fourth quarter of fiscal 2018 and a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship. The weighted-average amortization period, by major intangible asset class and in total, for the acquisition during fiscal year 2018 were as follows: Weighted Average Amortization Period Intangible Crestmark Trademark 10.0 Customer Relationships 10.0 Technology/Other 3.0 Total 9.9 |
Anticipated Future Amortization of Intangibles | The anticipated future amortization of intangibles is as follows: Year ended (Dollars in Thousands) 2019 $ 17,733 2020 11,017 2021 8,559 2022 6,404 2023 5,077 Thereafter 21,929 Total anticipated intangible amortization $ 70,719 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | Oct. 05, 2018 | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Sep. 30, 2018USD ($)segmentjoint_venture$ / shares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Oct. 01, 2018USD ($) | |||
PRINCIPLES OF CONSOLIDATION [Abstract] | ||||||||||||||||||||
Percentage of interest in subsidiary | 100.00% | 100.00% | ||||||||||||||||||
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract] | ||||||||||||||||||||
Number of reporting segments | segment | 3 | |||||||||||||||||||
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract] | ||||||||||||||||||||
Terms of FHLB advances | 90 days | |||||||||||||||||||
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) | $ 16,500 | $ 1,500 | $ 16,500 | $ 1,500 | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||
Number of joint venture LLC's | joint_venture | 5 | |||||||||||||||||||
Joint venture ownership interest in each of the joint ventures | 80.00% | |||||||||||||||||||
Retained earnings | 213,048 | 167,164 | $ 213,048 | 167,164 | ||||||||||||||||
SECURITIES [Abstract] | ||||||||||||||||||||
Recorded balance | 5,413 | 0 | 5,413 | 0 | ||||||||||||||||
Other than temporary impairment | 0 | 0 | $ 0 | |||||||||||||||||
Transfers | ||||||||||||||||||||
Aggregate unpaid balance of loans serviced for others | $ 134,000 | $ 21,800 | $ 134,000 | $ 21,800 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES [Abstract] | ||||||||||||||||||||
Look back period | 7 years | |||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.24 | $ 0.22 | $ 1.07 | $ 0.15 | $ 0.07 | $ 0.35 | $ 1.15 | $ 0.05 | $ 0.23 | $ 0.35 | $ 0.57 | $ 0.16 | $ 1.68 | [1] | $ 1.62 | [1] | $ 1.31 | [1] | ||
Diluted (in dollars per share) | $ / shares | $ 0.24 | $ 0.22 | $ 1.06 | $ 0.15 | $ 0.07 | $ 0.35 | $ 1.14 | $ 0.05 | $ 0.23 | $ 0.35 | $ 0.56 | $ 0.16 | $ 1.67 | [1] | $ 1.61 | [1] | $ 1.30 | [1] | ||
Net change in loans receivable | $ 493,381 | $ 274,840 | $ 217,985 | |||||||||||||||||
FRB [Member] | ||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||
Interest bearing deposits | $ 4,200 | 4,200 | ||||||||||||||||||
FHLB [Member] | ||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||
Interest bearing deposits | $ 16,000 | $ 16,000 | ||||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||
Stock split, conversion ratio | 3 | |||||||||||||||||||
Buildings [Member] | Minimum [Member] | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 10 years | |||||||||||||||||||
Buildings [Member] | Maximum [Member] | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 40 years | |||||||||||||||||||
Leasehold Improvements [Member] | Minimum [Member] | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 2 years | |||||||||||||||||||
Leasehold Improvements [Member] | Maximum [Member] | ||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 15 years | |||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||||
Retained earnings | $ 2,000 | |||||||||||||||||||
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Assets of VIE's) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 99,977 | $ 1,267,586 | $ 773,830 | $ 27,658 |
Loans and leases receivable | 2,944,739 | 1,325,371 | ||
Allowance for loan and lease losses | (13,040) | (7,534) | ||
Accrued interest receivable | 22,016 | 19,380 | ||
Foreclosed real estate and repossessed assets | 31,638 | 292 | ||
Other assets | 30,879 | 12,738 | ||
Total assets | 5,835,067 | 5,228,332 | $ 4,006,419 | |
Accrued expenses and other liabilities | 133,838 | 78,065 | ||
Non-controlling interest | 3,574 | $ 0 | ||
VIE's Aggregated Disclosure [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 867 | |||
Loans and leases receivable | 131,197 | |||
Allowance for loan and lease losses | (145) | |||
Accrued interest receivable | 887 | |||
Rental equipment | 99 | |||
Foreclosed real estate and repossessed assets | 1,626 | |||
Other assets | 3,247 | |||
Total assets | 137,778 | |||
Accrued expenses and other liabilities | 2,386 | |||
Non-controlling interest | 3,574 | |||
Net assets less non-controlling interest | $ 131,818 |
ACQUISITIONS ACQUISTIONS - Narr
ACQUISITIONS ACQUISTIONS - Narrative (Details) $ / shares in Units, $ in Thousands | Aug. 01, 2018USD ($)shares | Dec. 14, 2016USD ($)shares | Nov. 01, 2016USD ($)franchiseshares | Jun. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018$ / shares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 303,270 | $ 98,723 | $ 36,928 | |||||
Contingent consideration - equity | $ 0 | $ (24,142) | $ 0 | |||||
Pre-tax transaction related expenses | $ 800 | |||||||
Crestmark Bancorp, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 295,773 | |||||||
Equity interest issued (in shares) | shares | 9,919,512 | |||||||
Share price (in dollars per share) | $ / shares | $ 29.82 | |||||||
Goodwill | $ 204,547 | |||||||
Acquisition related expenses | 9,020,000 | |||||||
Net interest income of consolidated entity, actual | $ 19,100 | |||||||
Net income of consolidated entity, actual | $ 9,700 | |||||||
Cash | 6 | |||||||
Intangible assets | 28,253 | |||||||
Other assets | $ 22,170 | |||||||
EPS Financial, LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 48,384 | |||||||
Equity interest issued (in shares) | shares | 1,107,537 | |||||||
Goodwill | $ 30,375 | |||||||
Cash | 21,877 | |||||||
Intangible assets | 17,930 | |||||||
Pre-tax transaction related expenses | $ 500 | |||||||
Number of ERO's | franchise | 10,000 | |||||||
Other assets | $ 79 | |||||||
Specialty Consumer Services [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 59,731 | |||||||
Equity interest issued (in shares) | shares | 339,984 | |||||||
Goodwill | $ 31,419 | |||||||
Cash | 7,548 | |||||||
Contingent consideration, performance target earnout payments | $ 17,500 | |||||||
Contingent consideration, performance target earnout payments (in shares) | shares | 793,293 | |||||||
Intangible assets | $ 28,310 | |||||||
Contingent consideration, performance target earnout payments, percent | 100.00% | |||||||
Contingent consideration - cash | $ 17,252 | |||||||
Contingent consideration - equity | 24,142 | |||||||
Other assets | $ 2 |
ACQUISITIONS - Schedule of Asse
ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 01, 2018 | Dec. 14, 2016 | Nov. 01, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Fair value of consideration paid | ||||||
Contingent consideration - equity | $ 0 | $ (24,142) | $ 0 | |||
Fair value of liabilities assumed | ||||||
Goodwill resulting from acquisition | 303,270 | $ 98,723 | $ 36,928 | |||
Crestmark Bancorp, Inc. [Member] | ||||||
Fair value of consideration paid | ||||||
Cash | $ 6 | |||||
Stock issued | 295,767 | |||||
Total consideration paid | 295,773 | |||||
Fair value of assets acquired | ||||||
Cash and cash equivalents | 58,858 | |||||
Investment & MBS securities | 25,349 | |||||
Loan and lease receivables held for sale | 17,494 | |||||
Loan and lease receivables held for investment | 1,046,010 | |||||
Federal Home Loan Bank stock, at cost | 33 | |||||
Accrued interest receivable | 5,381 | |||||
Premises, furniture, and equipment | 18,458 | |||||
Rental equipment | 98,977 | |||||
Foreclosed real estate and repossessed assets | 1,209 | |||||
Intangible assets | 28,253 | |||||
Other assets | 22,170 | |||||
Total assets | 1,322,192 | |||||
Fair value of liabilities assumed | ||||||
Total deposits | 1,120,666 | |||||
Time certificates of deposits | 295,590 | |||||
Wholesale certificates of deposits | 825,076 | |||||
Short-term debt | 11,642 | |||||
Long-term debt | 3,609 | $ 3,400 | ||||
Accrued interest payable | 3,581 | |||||
Accrued expenses and other liabilities | 88,301 | |||||
Total liabilities assumed | 1,227,799 | |||||
Total non-controlling interest | 3,167 | |||||
Fair value of net assets acquired | 91,226 | |||||
Goodwill resulting from acquisition | $ 204,547 | |||||
Specialty Consumer Services [Member] | ||||||
Fair value of consideration paid | ||||||
Cash | $ 7,548 | |||||
Stock issued | 10,789 | |||||
Paid Consideration | 18,337 | |||||
Contingent consideration - cash | 17,252 | |||||
Contingent consideration - equity | 24,142 | |||||
Contingent consideration payable | 41,394 | |||||
Total consideration paid | 59,731 | |||||
Fair value of assets acquired | ||||||
Intangible assets | 28,310 | |||||
Other assets | 2 | |||||
Total assets | 28,312 | |||||
Fair value of net assets acquired | 28,312 | |||||
Fair value of liabilities assumed | ||||||
Goodwill resulting from acquisition | $ 31,419 | |||||
EPS Financial, LLC [Member] | ||||||
Fair value of consideration paid | ||||||
Cash | $ 21,877 | |||||
Stock issued | 26,507 | |||||
Total consideration paid | 48,384 | |||||
Fair value of assets acquired | ||||||
Intangible assets | 17,930 | |||||
Other assets | 79 | |||||
Total assets | 18,009 | |||||
Fair value of net assets acquired | 18,009 | |||||
Fair value of liabilities assumed | ||||||
Goodwill resulting from acquisition | $ 30,375 |
ACQUISITIONS ACQUISITONS - Prof
ACQUISITIONS ACQUISITONS - Proforma Information (Details) - Crestmark Bancorp, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 206,822 | $ 181,184 |
Net income attributable to parent | $ 74,640 | $ 64,390 |
Basic earnings per share (in dollars per share) | $ 1.91 | $ 1.71 |
Diluted earnings per share (in dollars per share) | $ 1.91 | $ 1.70 |
LOANS AND LEASES RECEIVABLE, _3
LOANS AND LEASES RECEIVABLE, NET - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | $ 2,944,989 | $ 1,326,832 |
Less: | ||
Allowance for Loan Losses | (13,040) | (7,534) |
Net Deferred Loan Origination Fees | (250) | (1,461) |
Total Loans Receivable, Net | 2,931,699 | 1,317,837 |
National Lending [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 1,846,283 | 395,729 |
National Lending [Member] | Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 1,509,849 | 255,308 |
National Lending [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 335,361 | 140,229 |
National Lending [Member] | Tax Services [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 1,073 | 192 |
Community Banking [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 1,098,706 | 931,103 |
Community Banking [Member] | Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 42,311 | 30,718 |
Community Banking [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 23,836 | 22,775 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 748,579 | 585,510 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | 223,482 | 196,706 |
Community Banking [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans and leases receivable | $ 60,498 | $ 95,394 |
LOANS AND LEASES RECEIVABLE, _4
LOANS AND LEASES RECEIVABLE, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | $ 7,534 | $ 5,635 | $ 6,255 | ||
Provision (recovery) for loan losses | 29,433 | 10,589 | 4,605 | ||
Recoveries | 2,037 | 307 | 147 | ||
Charge offs | (25,964) | (8,997) | (5,372) | ||
Ending balance | 13,040 | 7,534 | 5,635 | ||
Ending balance: individually evaluated for impairment | $ 588 | $ 0 | |||
Ending balance: collectively evaluated for impairment | 12,452 | 7,534 | |||
Total | 7,534 | 5,635 | 6,255 | 13,040 | 7,534 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 15,611 | 1,181 | |||
Ending balance: collectively evaluated for impairment | 2,929,378 | 1,325,651 | |||
Total loans receivable | 2,944,989 | 1,326,832 | |||
Unallocated [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 527 | 553 | |||
Provision (recovery) for loan losses | (527) | (26) | |||
Recoveries | 0 | 0 | |||
Charge offs | 0 | ||||
Ending balance | 0 | 527 | 553 | ||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 527 | ||||
Total | 527 | 553 | 553 | 0 | 527 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | ||||
Ending balance: collectively evaluated for impairment | 0 | ||||
Total loans receivable | 0 | ||||
National Lending [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 805 | 595 | |||
Provision (recovery) for loan losses | 28,433 | 8,388 | |||
Recoveries | 1,622 | 290 | |||
Charge offs | (25,888) | (8,468) | |||
Ending balance | 4,972 | 805 | 595 | ||
Ending balance: individually evaluated for impairment | 588 | 0 | |||
Ending balance: collectively evaluated for impairment | 4,384 | 805 | |||
Total | 805 | 595 | 595 | 4,972 | 805 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 13,612 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,832,671 | 395,729 | |||
Total loans receivable | 1,846,283 | 395,729 | |||
National Lending [Member] | Commercial Operating [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 800 | 589 | |||
Provision (recovery) for loan losses | 1,976 | 776 | |||
Recoveries | 1,169 | 61 | |||
Charge offs | (2,643) | (626) | |||
Ending balance | 1,302 | 800 | 589 | ||
Ending balance: individually evaluated for impairment | 588 | 0 | |||
Ending balance: collectively evaluated for impairment | 714 | 800 | |||
Total | 800 | 589 | 589 | 1,302 | 800 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 13,612 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,496,237 | 255,308 | |||
Total loans receivable | 1,509,849 | 255,308 | |||
National Lending [Member] | Consumer [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Provision (recovery) for loan losses | 5,113 | 0 | |||
Recoveries | 0 | 0 | |||
Charge offs | (1,443) | 0 | |||
Ending balance | 3,670 | 0 | 0 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 3,670 | 0 | |||
Total | 0 | 0 | 0 | 3,670 | 0 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 335,361 | 140,229 | |||
Total loans receivable | 335,361 | 140,229 | |||
National Lending [Member] | Tax Services [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 5 | 6 | |||
Provision (recovery) for loan losses | 21,344 | 7,612 | |||
Recoveries | 453 | 229 | |||
Charge offs | (21,802) | (7,842) | |||
Ending balance | 0 | 5 | 6 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 0 | 5 | |||
Total | 5 | 6 | 6 | 0 | 5 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,073 | 192 | |||
Total loans receivable | 1,073 | 192 | |||
Community Banking [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 6,203 | 4,487 | |||
Provision (recovery) for loan losses | 1,527 | 2,228 | |||
Recoveries | 414 | 17 | |||
Charge offs | (76) | (529) | |||
Ending balance | 8,068 | 6,203 | 4,487 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 8,068 | 6,203 | |||
Total | 6,203 | 4,487 | 4,487 | 8,068 | 6,203 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 1,999 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,096,707 | 931,103 | |||
Total loans receivable | 1,098,706 | 931,103 | |||
Community Banking [Member] | Commercial Operating [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 150 | 110 | |||
Provision (recovery) for loan losses | 23 | 425 | |||
Recoveries | 0 | 5 | |||
Charge offs | 0 | (390) | |||
Ending balance | 173 | 150 | 110 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 173 | 150 | |||
Total | 150 | 110 | 110 | 173 | 150 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 46 | 0 | |||
Ending balance: collectively evaluated for impairment | 42,265 | 30,718 | |||
Total loans receivable | 42,311 | 30,718 | |||
Community Banking [Member] | Consumer [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 6 | 51 | |||
Provision (recovery) for loan losses | 64 | (44) | |||
Recoveries | 3 | 0 | |||
Charge offs | (31) | (1) | |||
Ending balance | 42 | 6 | 51 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 42 | 6 | |||
Total | 6 | 51 | 51 | 42 | 6 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 23,836 | 22,775 | |||
Total loans receivable | 23,836 | 22,775 | |||
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 2,670 | 2,198 | |||
Provision (recovery) for loan losses | 3,377 | 610 | |||
Recoveries | 0 | 0 | |||
Charge offs | 0 | (138) | |||
Ending balance | 6,047 | 2,670 | 2,198 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 6,047 | 2,670 | |||
Total | 2,670 | 2,198 | 2,198 | 6,047 | 2,670 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 405 | 1,109 | |||
Ending balance: collectively evaluated for impairment | 748,174 | 584,401 | |||
Total loans receivable | 748,579 | 585,510 | |||
Community Banking [Member] | 1-4 Family Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 803 | 654 | |||
Provision (recovery) for loan losses | (168) | 149 | |||
Recoveries | 0 | 0 | |||
Charge offs | (45) | 0 | |||
Ending balance | 590 | 803 | 654 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 590 | 803 | |||
Total | 803 | 654 | 654 | 590 | 803 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 94 | 72 | |||
Ending balance: collectively evaluated for impairment | 223,388 | 196,634 | |||
Total loans receivable | 223,482 | 196,706 | |||
Community Banking [Member] | Agricultural [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 2,574 | 1,474 | |||
Provision (recovery) for loan losses | (1,769) | 1,088 | |||
Recoveries | 411 | 12 | |||
Charge offs | 0 | 0 | |||
Ending balance | 1,216 | 2,574 | 1,474 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,216 | 2,574 | |||
Total | $ 2,574 | $ 1,474 | $ 1,474 | 1,216 | 2,574 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 1,454 | 0 | |||
Ending balance: collectively evaluated for impairment | 59,044 | 95,394 | |||
Total loans receivable | $ 60,498 | $ 95,394 |
LOANS AND LEASES RECEIVABLE, _5
LOANS AND LEASES RECEIVABLE, NET - Asset Classification of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 2,944,989 | $ 1,326,832 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,783,536 | 1,265,560 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 15,235 | 17,272 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 121,639 | 3,387 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 24,579 | 40,613 |
National Lending [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,846,283 | 395,729 |
National Lending [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,716,336 | 395,729 |
National Lending [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 116,334 | 0 |
National Lending [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 13,613 | 0 |
National Lending [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,509,849 | 255,308 |
National Lending [Member] | Commercial Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,379,902 | 255,308 |
National Lending [Member] | Commercial Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Commercial Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 116,334 | 0 |
National Lending [Member] | Commercial Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 13,613 | 0 |
National Lending [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 335,361 | 140,229 |
National Lending [Member] | Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 335,361 | 140,229 |
National Lending [Member] | Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Tax Services [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,073 | 192 |
National Lending [Member] | Tax Services [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,073 | 192 |
National Lending [Member] | Tax Services [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Tax Services [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
National Lending [Member] | Tax Services [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,098,706 | 931,103 |
Community Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,067,200 | 869,831 |
Community Banking [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 15,235 | 17,272 |
Community Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 5,305 | 3,387 |
Community Banking [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 10,966 | 40,613 |
Community Banking [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 42,311 | 30,718 |
Community Banking [Member] | Commercial Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 42,311 | 30,718 |
Community Banking [Member] | Commercial Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | Commercial Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | Commercial Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 23,836 | 22,775 |
Community Banking [Member] | Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 23,580 | 22,775 |
Community Banking [Member] | Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 256 | 0 |
Community Banking [Member] | Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 748,579 | 585,510 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 736,134 | 574,730 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 12,251 | 10,200 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 194 | 201 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 379 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 223,482 | 196,706 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 222,883 | 195,838 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 281 | 525 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 239 | 247 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 79 | 96 |
Community Banking [Member] | Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 60,498 | 95,394 |
Community Banking [Member] | Agricultural [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 42,292 | 45,770 |
Community Banking [Member] | Agricultural [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,447 | 6,547 |
Community Banking [Member] | Agricultural [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,872 | 2,939 |
Community Banking [Member] | Agricultural [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 10,887 | $ 40,138 |
LOANS AND LEASES RECEIVABLE, _6
LOANS AND LEASES RECEIVABLE, NET - Past Due Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | $ 2,944,989 | $ 1,326,832 |
Impaired financing receivable, interest income, accrual method | 100 | |
National Lending [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 1,846,283 | 395,729 |
National Lending [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 1,509,849 | 255,308 |
National Lending [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 335,361 | 140,229 |
National Lending [Member] | Tax Services [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 1,073 | 192 |
Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 1,098,706 | 931,103 |
Community Banking [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 42,311 | 30,718 |
Community Banking [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 23,836 | 22,775 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 748,579 | 585,510 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 223,482 | 196,706 |
Community Banking [Member] | Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 60,498 | 95,394 |
Accruing and Non-accruing Loans and Lease [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 38,851 | 45,061 |
Current | 2,906,138 | 1,281,771 |
Total loans receivable | 2,944,989 | 1,326,832 |
Accruing and Non-accruing Loans and Lease [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 24,022 | 4,686 |
Accruing and Non-accruing Loans and Lease [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,297 | 3,079 |
Accruing and Non-accruing Loans and Lease [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 9,532 | 37,296 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 38,667 | 9,587 |
Current | 1,807,616 | 386,142 |
Total loans receivable | 1,846,283 | 395,729 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 23,917 | 4,012 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,297 | 2,983 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 9,453 | 2,592 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 30,406 | 5,156 |
Current | 1,479,443 | 250,152 |
Total loans receivable | 1,509,849 | 255,308 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 20,708 | 1,509 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,702 | 2,442 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,996 | 1,205 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 7,188 | 4,431 |
Current | 328,173 | 135,798 |
Total loans receivable | 335,361 | 140,229 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,209 | 2,503 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,595 | 541 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,384 | 1,387 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,073 | 0 |
Current | 0 | 192 |
Total loans receivable | 1,073 | 192 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,073 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 184 | 35,474 |
Current | 1,098,522 | 895,629 |
Total loans receivable | 1,098,706 | 931,103 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 105 | 674 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 96 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 79 | 34,704 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 42,311 | 30,718 |
Total loans receivable | 42,311 | 30,718 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 45 |
Current | 23,836 | 22,730 |
Total loans receivable | 23,836 | 22,775 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 9 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 17 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 19 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 685 |
Current | 748,579 | 584,825 |
Total loans receivable | 748,579 | 585,510 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 295 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 390 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 184 | 449 |
Current | 223,298 | 196,257 |
Total loans receivable | 223,482 | 196,706 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 105 | 370 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 79 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 79 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 34,295 |
Current | 60,498 | 61,099 |
Total loans receivable | 60,498 | 95,394 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 34,295 |
Non-performing Loans and Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,864 | 685 |
Total loans receivable | 10,201 | 37,591 |
Non-performing Loans and Leases [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,337 | 36,906 |
Non-performing Loans and Leases [Member] | National Lending [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,864 | 0 |
Total loans receivable | 10,122 | 2,592 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,258 | 2,592 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,864 | 0 |
Total loans receivable | 6,665 | 1,205 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 3,801 | 1,205 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 2,384 | 1,387 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,384 | 1,387 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Tax Services [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 1,073 | 0 |
Non-performing Loans and Leases [Member] | National Lending [Member] | Tax Services [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,073 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 685 |
Total loans receivable | 79 | 34,999 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 79 | 34,314 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 0 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 0 | 19 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 19 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 685 |
Total loans receivable | 0 | 685 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 79 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 79 | 0 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans receivable | 0 | 34,295 |
Non-performing Loans and Leases [Member] | Community Banking [Member] | Agricultural [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 0 | $ 34,295 |
LOANS AND LEASES RECEIVABLE, _7
LOANS AND LEASES RECEIVABLE, NET - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | $ 10,198 | $ 1,181 |
Unpaid principal balance | 10,528 | 1,181 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 5,413 | 0 |
Unpaid principal balance | 5,413 | 0 |
Specific allowance | 588 | 0 |
Average recorded investment in impaired loans | 3,685 | 1,675 |
National Lending [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 8,199 | |
Unpaid principal balance | 8,529 | |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 5,413 | |
Unpaid principal balance | 5,663 | |
Specific allowance | 588 | |
Average recorded investment in impaired loans | 1,134 | 0 |
National Lending [Member] | Commercial Operating [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 8,199 | |
Unpaid principal balance | 8,529 | |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 5,413 | |
Unpaid principal balance | 5,663 | |
Specific allowance | 588 | |
Average recorded investment in impaired loans | 1,134 | 0 |
Community Banking [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 1,999 | 1,181 |
Unpaid principal balance | 1,999 | 1,181 |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 2,551 | 1,675 |
Community Banking [Member] | Commercial Operating [Member] | ||
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 0 | 202 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 405 | 1,109 |
Unpaid principal balance | 405 | 1,109 |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 673 | 883 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 94 | 72 |
Unpaid principal balance | 94 | 72 |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 159 | 176 |
Community Banking [Member] | Agricultural [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 1,454 | |
Unpaid principal balance | 1,454 | |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 1,652 | 414 |
Community Banking [Member] | Consumer [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 46 | |
Unpaid principal balance | 46 | |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | $ 67 | $ 0 |
LOANS AND LEASES RECEIVABLE, _8
LOANS AND LEASES RECEIVABLE, NET - Troubled Debt Restructured Loans (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | |
Community Banking [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified in TDR | loan | 10 | 4 |
Troubled debt restructuring (TDR's) | $ | $ 2 | $ 0.5 |
Number of loans modified in TDR, subsequent default | loan | 1 | 0 |
Loans modified in TDR, subsequent default | $ | $ 0.1 | |
National Lending [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified in TDR | loan | 11 | |
Troubled debt restructuring (TDR's) | $ | $ 2.5 |
LOAN SERVICING (Details)
LOAN SERVICING (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Transfers and Servicing [Abstract] | |||
Mortgage loan portfolios serviced for Fannie Mae | $ 2,338 | $ 3,162 | $ 3,980 |
SBA/USDA | 98,942 | 0 | 0 |
Other | 32,726 | 18,649 | 15,452 |
Total | $ 134,006 | $ 21,811 | $ 19,432 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) | Oct. 05, 2018shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | |||
Basic income per common share: | |||||||||||||||||||
Net Income attributable to parent | $ 8,722,000 | $ 6,792,000 | $ 31,436,000 | $ 4,670,000 | $ 1,744,000 | $ 9,787,000 | $ 32,142,000 | $ 1,244,000 | $ 6,006,000 | $ 8,873,000 | $ 14,283,000 | $ 4,058,000 | $ 51,620,000 | $ 44,917,000 | $ 33,220,000 | ||||
Weighted average common shares outstanding (in shares) | $ 30,737,499 | $ 27,741,276 | $ 25,331,868 | ||||||||||||||||
Basic income per common share (in dollars per share) | $ / shares | $ 0.24 | $ 0.22 | $ 1.07 | $ 0.15 | $ 0.07 | $ 0.35 | $ 1.15 | $ 0.05 | $ 0.23 | $ 0.35 | $ 0.57 | $ 0.16 | $ 1.68 | [1] | $ 1.62 | [1] | $ 1.31 | [1] | |
Diluted income per common share: | |||||||||||||||||||
Net Income attributable to parent | $ 8,722,000 | $ 6,792,000 | $ 31,436,000 | $ 4,670,000 | $ 1,744,000 | $ 9,787,000 | $ 32,142,000 | $ 1,244,000 | $ 6,006,000 | $ 8,873,000 | $ 14,283,000 | $ 4,058,000 | $ 51,620,000 | $ 44,917,000 | $ 33,220,000 | ||||
Weighted average common shares outstanding (in shares) | 30,737,499 | 27,741,276 | 25,331,868 | ||||||||||||||||
Outstanding options - based upon the two-class method (in shares) | $ 115,551 | $ 166,956 | $ 160,170 | ||||||||||||||||
Weighted average diluted common shares outstanding (in shares) | shares | 30,853,050 | 27,908,232 | 25,492,038 | ||||||||||||||||
Diluted income per common share (in dollars per share) | $ / shares | $ 0.24 | $ 0.22 | $ 1.06 | $ 0.15 | $ 0.07 | $ 0.35 | $ 1.14 | $ 0.05 | $ 0.23 | $ 0.35 | $ 0.56 | $ 0.16 | $ 1.67 | [1] | $ 1.61 | [1] | $ 1.30 | [1] | |
Subsequent Event [Member] | Common Stock [Member] | |||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||
Stock split, conversion ratio | 3 | ||||||||||||||||||
Stock Issued, stock split (in shares) | shares | 39,200,000 | ||||||||||||||||||
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
SECURITIES SECURITIES - Narrati
SECURITIES SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities held to maturity | $ (164,304) | $ (164,304) | $ (449,840) | ||
Mortgage-backed securities held to maturity | (7,850) | (7,850) | (113,689) | ||
Proceeds from sale of lower-yielding AFS securities | 260,000 | 596,758 | 457,306 | $ 285,508 | |
Securities pledged as collateral for public funds on deposit | 8,000 | 8,000 | 5,700 | ||
Securities pledged as collateral for individual, trust, and estate deposits | 5,900 | 5,900 | 3,800 | ||
Federal Home Loan Bank stock, at cost | 23,400 | 23,400 | 61,123 | ||
Pledged securities against specific FHLB advances, fair value | 1,060,000 | 1,060,000 | 1,070,000 | ||
Loans pledged as collateral | 756,000 | 756,000 | 628,000 | ||
Accounting Standards Update 2017-12 [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities held to maturity | $ 40,900 | 40,900 | $ 204,700 | ||
Mortgage-backed securities held to maturity | $ 101,300 | ||||
Federal Home Loan Bank [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Interest and dividend income from FLHB | $ 1,100 | $ 500 | $ 600 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Available (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Available For Sale | ||
Mortgage-back securities | $ 364,065 | $ 586,454 |
Available-for-sale securities [Abstract] | ||
Amortized cost | 1,895,802 | 1,680,307 |
Gross unrealized gains | 4,096 | 19,884 |
Gross unrealized (losses) | (47,873) | (6,760) |
Total securities | 1,852,025 | 1,693,431 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 950,499 | 518,797 |
OVER 12 MONTHS, Fair Value | 601,825 | 106,140 |
TOTAL, Fair Value | 1,552,324 | 624,937 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (18,629) | (4,512) |
OVER 12 MONTHS, Unrealized (Losses) | (29,244) | (2,248) |
TOTAL, Unrealized (Losses) | (47,873) | (6,760) |
AMORTIZED COST [Abstract] | ||
Due in one year or less | 2,532 | 0 |
Due after one year through five years | 41,415 | 36,586 |
Due after five years through ten years | 352,099 | 347,831 |
Due after ten years | 1,118,283 | 705,963 |
Total Amortized Cost | 1,514,329 | 1,090,380 |
Mortgage-backed securities | 378,301 | 588,918 |
Common equities and mutual funds | 3,172 | 1,009 |
Amortized cost | 1,895,802 | 1,680,307 |
FAIR VALUE [Abstract] | ||
Due in one year or less | 2,529 | 0 |
Due after one year through five years | 41,504 | 37,674 |
Due after five years through ten years | 350,143 | 358,198 |
Due after ten years | 1,089,984 | 709,660 |
Total Fair Value | 1,484,160 | 1,105,532 |
Mortgage-back securities | 364,065 | 586,454 |
Common equities and mutual funds | 3,800 | 1,445 |
Total securities | 1,852,025 | 1,693,431 |
Held To Maturity | ||
Amortized cost | 172,154 | 563,529 |
Gross unrealized gains | 4,901 | |
Gross unrealized (losses) | (11,180) | (4,245) |
Fair value | 160,974 | 564,185 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 6,178 | 315,838 |
OVER 12 MONTHS, Fair Value | 154,796 | 10,295 |
TOTAL, Fair Value | 160,974 | 326,133 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (287) | (4,022) |
OVER 12 MONTHS, Unrealized (Losses) | (10,893) | (223) |
TOTAL, Unrealized (Losses) | (11,180) | (4,245) |
AMORTIZED COST [Abstract] | ||
Due in one year or less | 1,483 | |
Due after one year through five years | 17,926 | |
Due after five years through ten years | 144,996 | |
Due after ten years | 164,304 | 285,435 |
Total Amortized Cost | 164,304 | 449,840 |
Mortgage-backed securities | 7,850 | 113,689 |
Amortized cost | 172,154 | 563,529 |
FAIR VALUE [Abstract] | ||
Due in one year or less | 1,480 | |
Due after one year through five years | 18,160 | |
Due after five years through ten years | 147,832 | |
Due after ten years | 153,546 | 284,257 |
Total Fair Value | 153,546 | 451,729 |
Mortgage-backed securities | 7,428 | 112,456 |
Total securities | 160,974 | 564,185 |
Small Business Administration Securities [Member] | ||
Available For Sale | ||
Amortized cost | 45,591 | 57,046 |
Gross unrealized gains | 1 | 825 |
Gross unrealized (losses) | (1,255) | 0 |
Mortgage-back securities | 44,337 | 57,871 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 43,097 | |
OVER 12 MONTHS, Fair Value | 0 | |
TOTAL, Fair Value | 43,097 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (1,255) | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Unrealized (Losses) | (1,255) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 44,337 | 57,871 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available For Sale | ||
Amortized cost | 17,154 | |
Gross unrealized gains | 49 | |
Gross unrealized (losses) | (293) | |
Mortgage-back securities | 16,910 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 11,036 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (279) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 881 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (14) | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 11,917 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (293) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 16,910 | |
Held To Maturity | ||
Amortized cost | 19,247 | |
Gross unrealized gains | 157 | |
Gross unrealized (losses) | (36) | |
Fair value | 19,368 | |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,364 | |
OVER 12 MONTHS, Fair Value | 4,089 | |
TOTAL, Fair Value | 5,453 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (6) | |
OVER 12 MONTHS, Unrealized (Losses) | (30) | |
TOTAL, Unrealized (Losses) | (36) | |
AMORTIZED COST [Abstract] | ||
Amortized cost | 19,247 | |
FAIR VALUE [Abstract] | ||
Total securities | 19,368 | |
Non-Bank Qualified Obligation of States And Political Subdivisions [Member] | ||
Available For Sale | ||
Amortized cost | 1,140,884 | 938,883 |
Gross unrealized gains | 826 | 14,983 |
Gross unrealized (losses) | (31,825) | (3,037) |
Mortgage-back securities | 1,109,885 | 950,829 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 626,693 | 280,900 |
OVER 12 MONTHS, Fair Value | 358,095 | 5,853 |
TOTAL, Fair Value | 984,788 | 286,753 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (13,539) | (2,887) |
OVER 12 MONTHS, Unrealized (Losses) | (18,286) | (150) |
TOTAL, Unrealized (Losses) | (31,825) | (3,037) |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 1,109,885 | 950,829 |
Held To Maturity | ||
Amortized cost | 164,304 | 430,593 |
Gross unrealized gains | 0 | 4,744 |
Gross unrealized (losses) | (10,758) | (2,976) |
Fair value | 153,546 | 432,361 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 6,178 | 202,018 |
OVER 12 MONTHS, Fair Value | 147,368 | 6,206 |
TOTAL, Fair Value | 153,546 | 208,224 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (287) | (2,783) |
OVER 12 MONTHS, Unrealized (Losses) | (10,471) | (193) |
TOTAL, Unrealized (Losses) | (10,758) | (2,976) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 164,304 | 430,593 |
FAIR VALUE [Abstract] | ||
Total securities | 153,546 | 432,361 |
Asset-backed Securities [Member] | ||
Available For Sale | ||
Amortized cost | 310,700 | 94,451 |
Gross unrealized gains | 2,585 | 2,381 |
Gross unrealized (losses) | (257) | 0 |
Mortgage-back securities | 313,028 | 96,832 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 146,638 | |
OVER 12 MONTHS, Fair Value | 0 | |
TOTAL, Fair Value | 146,638 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (257) | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Unrealized (Losses) | (257) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 313,028 | 96,832 |
Collateralized Mortgage Backed Securities [Member] | ||
Available For Sale | ||
Amortized cost | 378,301 | 588,918 |
Gross unrealized gains | 0 | 1,259 |
Gross unrealized (losses) | (14,236) | (3,723) |
Mortgage-back securities | 364,065 | 586,454 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 121,217 | 237,897 |
OVER 12 MONTHS, Fair Value | 242,849 | 100,287 |
TOTAL, Fair Value | 364,066 | 338,184 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (3,292) | (1,625) |
OVER 12 MONTHS, Unrealized (Losses) | (10,944) | (2,098) |
TOTAL, Unrealized (Losses) | (14,236) | (3,723) |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 364,065 | 586,454 |
Held To Maturity | ||
Amortized cost | 7,850 | 113,689 |
Gross unrealized gains | 0 | 0 |
Gross unrealized (losses) | (422) | (1,233) |
Fair value | 7,428 | 112,456 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | 112,456 |
OVER 12 MONTHS, Fair Value | 7,428 | 0 |
TOTAL, Fair Value | 7,428 | 112,456 |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (1,233) |
OVER 12 MONTHS, Unrealized (Losses) | (422) | 0 |
TOTAL, Unrealized (Losses) | (422) | (1,233) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 7,850 | 113,689 |
FAIR VALUE [Abstract] | ||
Total securities | 7,428 | 112,456 |
Debt Securities [Member] | ||
Available For Sale | ||
Amortized cost | 1,892,630 | 1,679,298 |
Gross unrealized gains | 3,461 | 19,448 |
Gross unrealized (losses) | (47,866) | (6,760) |
Mortgage-back securities | 1,848,225 | 1,691,986 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 948,681 | |
OVER 12 MONTHS, Fair Value | 601,825 | |
TOTAL, Fair Value | 1,550,506 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (18,622) | |
OVER 12 MONTHS, Unrealized (Losses) | (29,244) | |
TOTAL, Unrealized (Losses) | (47,866) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 1,848,225 | 1,691,986 |
Common Equities And Mutual Funds [Member] | ||
Available For Sale | ||
Amortized cost | 3,172 | 1,009 |
Gross unrealized gains | 635 | 436 |
Gross unrealized (losses) | (7) | 0 |
Mortgage-back securities | 3,800 | 1,445 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,818 | |
OVER 12 MONTHS, Fair Value | 0 | |
TOTAL, Fair Value | 1,818 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (7) | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Unrealized (Losses) | (7) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | $ 3,800 | $ 1,445 |
SECURITIES - Activities Related
SECURITIES - Activities Related to Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available For Sale | |||
Proceeds from sales | $ 596,758 | $ 457,306 | $ 285,508 |
Gross gains on sales | 2,551 | 4,091 | 1,459 |
Gross losses on sales | 10,728 | 4,628 | 1,785 |
Net loss on available for sale securities | (8,177) | (537) | (326) |
Held To Maturity | |||
Net carrying amount of securities sold | 0 | 5,826 | 0 |
Gross realized gain on sales | 0 | 92 | 0 |
Gross realized losses on sales | 0 | 48 | 0 |
Net gain on held to maturity securities | $ 0 | $ 44 | $ 0 |
PREMISES, FURNITURE, AND EQUI_3
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 88,988 | $ 61,413 | |
Less: accumulated depreciation and amortization | (48,530) | (42,093) | |
Net book value | 40,458 | 19,320 | |
Depreciation expense of premises, furniture, and equipment | 5,700 | 5,500 | $ 5,400 |
Amortization expense on capitalized leases | 100 | 100 | $ 200 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 2,932 | 1,578 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 27,359 | 10,642 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 56,438 | 46,934 | |
Capitalized Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 2,259 | $ 2,259 |
TIME CERTIFICATES OF DEPOSITS_2
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
IRA deposit accounts permanently insured by DIF under management of FDIC | $ 250,000 | |
Time certificates of deposits in denominations of $250,000 or more | 163,300,000 | $ 85,200,000 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,019 | 1,562,801,000 | |
2,020 | 125,581,000 | |
2,021 | 16,623,000 | |
2,022 | 6,929,000 | |
2,023 | 1,048,000 | |
Total Certificates | 1,712,982,000 | |
Wholesale deposits | 1,531,186,000 | $ 476,173,000 |
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC | 250,000 | |
Wholesale Deposits [Member] | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Wholesale deposits | $ 1,440,000,000 |
SHORT TERM DEBT AND LONG TERM_3
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Short Term Debt (Details) | 12 Months Ended | |
Sep. 30, 2018USD ($)Lease | Sep. 30, 2017USD ($) | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 425,759,000 | $ 1,404,534,000 |
Pledged securities against specific FHLB advances, fair value | 1,060,000,000 | 1,070,000,000 |
Loans pledged as collateral | $ 756,000,000 | 628,000,000 |
Number of capital leases | Lease | 3 | |
Number of equipment leases | Lease | 2 | |
Number of property leases | Lease | 1 | |
Leases, current | $ 64,818 | |
Securities sold under agreements to repurchase, total | 3,700,000 | 2,500,000 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Highest month-end balance | 3,740,000 | 3,782,000 |
Average balance | $ 2,557,000 | $ 2,225,000 |
Weighted average interest rate for the year | 2.05% | 0.98% |
Weighted average interest rate at year end | 2.48% | 1.59% |
Securities pledged as collateral for securities sold under agreement to repurchase, fair value | $ 13,900,000 | $ 9,300,000 |
Overnight federal funds purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 422,000,000 | 987,000,000 |
Short-term FHLB advances [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 415,000,000 |
Short-term capital lease [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 65,000 | 62,000 |
Repurchase agreements [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 3,694,000 | $ 2,472,000 |
SHORT TERM DEBT AND LONG TERM_4
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Disclosure [Abstract] | ||
Long-term FHLB advances | $ 0 | $ 0 |
Trust preferred securities | 13,661 | 10,310 |
Subordinated debentures (net of issuance costs) | 73,491 | 73,347 |
Long-term capital lease | 1,811 | 1,876 |
Trust preferred securities, Total | 13,661 | |
Long-term capital lease | ||
2,019 | 0 | |
2,020 | 73 | |
2,021 | 77 | |
2,022 | 82 | |
2,023 | 87 | |
Thereafter | 1,492 | |
Total Long-term capital lease | 1,811 | 1,876 |
Maturities of Long-term Debt | ||
Total 2,019 | 0 | |
Total 2,020 | 73 | |
Total 2,021 | 77 | |
Total 2,022 | 82 | |
Total 2,023 | 87 | |
Total Thereafter | 88,644 | |
Total Long-term Debt | $ 88,963 | $ 85,533 |
SHORT TERM DEBT AND LONG TERM_5
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Long Term Debt Narrative (Details) | 12 Months Ended | |||
Sep. 30, 2018USD ($)PeriodLease$ / sharesshares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 01, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | |||
Cash acquired due to acquisitions | 0 | $ 0 | $ 75,000,000 | |
Proceeds from debt, net of issuance costs | 73,491,000 | 73,347,000 | ||
Accrued interest payable | $ 7,794,000 | $ 2,280,000 | ||
Number of capital leases | Lease | 3 | |||
Number of equipment leases | Lease | 2 | |||
Number of property leases | Lease | 1 | |||
Leases expense in next twelve months | $ 1,800,000 | |||
First Midwest Financial Capital Trust I [Member] | ||||
Debt Instrument [Line Items] | ||||
Equity method investment, ownership percentage | 100.00% | |||
Issuance of trust preferred securities (in shares) | shares | 10,000 | |||
Number of authorized shares of trust preferred securities issued (in shares) | shares | 10,310 | |||
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period | 10 | |||
Redemption price per capital security (in dollars per share) | $ / shares | $ 1,000 | |||
First Midwest Financial Capital Trust I [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
Effective interest rate | 6.35% | 5.22% | ||
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 [Member] | Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash acquired due to acquisitions | $ 75,000,000 | |||
Interest rate, stated percentage | 5.75% | |||
Net proceeds from issuance of debt, before issuance costs | $ 73,900,000 | |||
Proceeds from debt, net of issuance costs | 73,500,000 | |||
Debt issuance costs | 1,500,000 | |||
Accrued interest payable | $ 8,600,000 | |||
Weighted Average [Member] | First Midwest Financial Capital Trust I [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 12.50% | |||
Crestmark Bancorp, Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 5.31% | |||
Long-term debt | $ 3,400,000 | $ 3,609,000 | ||
Debt instrument, term | 30 years | |||
Crestmark Bancorp, Inc. [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% |
EMPLOYEE STOCK OWNERSHIP AND _3
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details) | 12 Months Ended | ||
Sep. 30, 2018USD ($)hours$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |||
Number of hours of employment required for ESOP | hours | 1,000 | ||
Years of employment to be eligible for ESOP | 1 year | ||
Eligible age for ESOP | 21 years | ||
Employee Stock Ownership Plan (ESOP), Expense | $ | $ 2,073,000 | $ 1,668,000 | $ 1,150,000 |
Contribution to ESOP | $ | $ 2,011,040 | $ 1,606,102 | $ 1,174,682 |
Percentage of benefits vested after credited service | 100.00% | ||
ESOP award vesting period | 7 years | ||
Years of credited service | 7 years | ||
Number of shares (ESOP) released (in shares) | 72,996 | 61,458 | 58,143 |
Fair value of shares (ESOP) released (in dollars per share) | $ / shares | $ 27.55 | $ 26.13 | $ 20.20 |
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) | 6,687 | 42,378 | 46,506 |
Shares purchased for dividend reinvestment (in shares) | 3,987 | 4,437 | 8,130 |
Year-end ESOP shares [Abstract] | |||
Allocated shares (in shares) | 812,346 | 768,657 | 788,616 |
Unearned shares (in shares) | 0 | 0 | |
Total ESOP shares (in shares) | 812,346 | 768,657 | 788,616 |
Fair value of unearned shares | $ | $ 0 | $ 0 | $ 0 |
Contribution expense to profit sharing plan included in compensation and benefits | $ | $ 2,200,000 | $ 1,600,000 | $ 1,300,000 |
SHARE BASED COMPENSATION PLAN_2
SHARE BASED COMPENSATION PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effect to income of share-based compensation expense, net of tax benefits [Abstract] | |||
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively | $ 7,878 | $ 6,486 | $ 559 |
Tax effects of employee's stock-based compensation expense recognized income | 3,139 | $ 3,907 | $ 192 |
Stock based compensation expense not yet recognized in income | $ 17,000 | ||
Weighted average remaining period for unrecognized stock based compensation | 3 years 7 months 2 days | ||
Period that options are issued | 10 years | ||
Percentage of options vesting at either grant date or over four year period | 100.00% | ||
Period that options vest | 4 years | ||
Granted (in shares) | 0 | 0 | 0 |
Fair value of share granted (in shares) | 354,108 | 949,812 | |
Award vesting | P8Y | ||
Director [Member] | |||
Effect to income of share-based compensation expense, net of tax benefits [Abstract] | |||
Fair value of share granted (in shares) | 1,100,000 | 500,000 | 200,000 |
SHARE BASED COMPENSATION PLAN_3
SHARE BASED COMPENSATION PLANS - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 227,271 | 376,680 | |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (71,310) | (88,158) | |
Forfeited or expired (in shares) | 0 | (61,251) | |
Options outstanding, end of period (in shares) | 155,961 | 227,271 | 376,680 |
Options exercisable end of year (in shares) | 155,961 | 227,271 | |
Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 7.54 | $ 8.58 | |
Granted (in dollars per share) | 0 | 0 | |
Exercised (in dollars per share) | 5.48 | 11.13 | |
Forfeited or expired (in dollars per share) | 0 | 9 | |
Options outstanding, end of period (in dollars per share) | 8.48 | 7.54 | $ 8.58 |
Options exercisable end of year (in dollars per share) | $ 8.48 | $ 7.54 | |
Weighted Average Remaining Contractual Term (Yrs) [Abstract] | |||
Options outstanding , weighted average remaining contractual term (Yrs) | 1 year 9 months 11 days | 2 years 3 months 11 days | 2 years 8 months 5 days |
Options exercisable end of year, weighted average remaining contractual term (Yrs) | 1 year 9 months 11 days | 2 years 3 months 11 days | |
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 4,225 | $ 4,379 | |
Granted | 0 | 0 | |
Exercised | 1,909 | 1,790 | $ 1,500 |
Forfeited or expired | 0 | 1,464 | |
Options outstanding, end of period | $ 2,974 | 4,225 | $ 4,379 |
Options exercisable end of year | $ 4,225 |
SHARE BASED COMPENSATION PLAN_4
SHARE BASED COMPENSATION PLANS - Nonvested Shares (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Shares | ||
Nonvested shares outstanding, beginning of period (in shares) | 913,578 | 61,968 |
Granted (in shares) | 354,108 | 949,812 |
Vested (in shares) | (253,944) | (87,405) |
Forfeited or expired (in shares) | (7,929) | (10,797) |
Nonvested shares outstanding, end of period (in shares) | 1,005,813 | 913,578 |
Weighted Average Fair Value At Grant | ||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ 28.99 | $ 13.79 |
Granted (in dollars per share) | 30.36 | 29.16 |
Vested (in dollars per share) | 27.49 | 21.41 |
Forfeited or expired (in dollars per share) | 23.27 | 18.80 |
Nonvested shares outstanding, end of period (in dollars per share) | $ 29.89 | $ 28.99 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Federal: | ||||
Current | $ (4,023,000) | $ 12,153,000 | $ 4,410,000 | |
Deferred | 5,895,000 | (5,040,000) | (440,000) | |
Federal income tax expense | 1,872,000 | 7,113,000 | 3,970,000 | |
State: | ||||
Current | 2,611,000 | 4,366,000 | 1,422,000 | |
Deferred | 634,000 | (1,246,000) | 210,000 | |
State tax expense | 3,245,000 | 3,120,000 | 1,632,000 | |
Income tax expense | 5,117,000 | 10,233,000 | 5,602,000 | |
Deferred tax assets: | ||||
Bad debts | 3,224,000 | 2,832,000 | ||
Deferred compensation | 3,495,000 | 1,548,000 | ||
Stock based compensation | 3,758,000 | 3,436,000 | ||
AMT Credit | 0 | 1,869,000 | ||
Intangibles | 0 | 5,235,000 | ||
Net unrealized losses on securities available for sale | 10,663,000 | 0 | ||
Valuation adjustments | 6,991,000 | 0 | ||
General business credits | 12,243,000 | 0 | ||
Accrued expenses | 3,144,000 | 1,188,000 | ||
Other assets | 1,629,000 | 1,579,000 | ||
Gross deferred tax assets | 45,147,000 | 17,687,000 | ||
Deferred tax liabilities: | ||||
Premises and equipment | (347,000) | (1,713,000) | ||
Intangibles | (4,231,000) | 0 | ||
Net unrealized gains on securities available for sale | 0 | (4,934,000) | ||
Deferred income | (2,070,000) | 0 | ||
Leased assets | (17,985,000) | 0 | ||
Leased assets | (1,777,000) | (1,939,000) | ||
Gross deferred tax liabilities | (26,410,000) | (8,586,000) | ||
Net deferred tax assets | 18,737,000 | 9,101,000 | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income tax expense at federal tax rate | 14,082,000 | 19,303,000 | 13,588,000 | |
Change in tax rate resulting from: | ||||
State income taxes net of federal benefits | 2,461,000 | 2,014,000 | 933,000 | |
Tax exempt income | (6,968,000) | (9,991,000) | (8,257,000) | |
Nondeductible acquisition costs | 1,295,000 | 0 | 0 | |
General business credits | (3,948,000) | 0 | 0 | |
Tax Reform | 3,849,000 | 0 | 0 | |
Amended Crestmark Bancorp historical tax return | (4,644,000) | 0 | 0 | |
Other, net | (1,010,000) | (1,093,000) | (662,000) | |
Income tax expense | $ 5,117,000 | $ 10,233,000 | $ 5,602,000 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax expense and rate (percent) | 24.50% | 35.00% | 35.00% | |
State income taxes net of federal benefits (percent) | 4.30% | 3.70% | 2.40% | |
Tax exempt income (percent) | (12.10%) | (18.10%) | (21.30%) | |
Nondeductible acquisition costs (percent) | 2.30% | 0.00% | 0.00% | |
General business credits (percent) | (6.90%) | (0.00%) | (0.00%) | |
Tax Reform (percent) | 6.70% | 0.00% | 0.00% | |
Amended Crestmark Bancorp historical tax return (percent) | (8.10%) | 0.00% | 0.00% | |
Other, net (percent) | (1.70%) | (2.00%) | (1.70%) | |
Total income tax expense (percent) | 9.00% | 18.60% | 14.40% | |
Gross deferred tax on state net operating loss carryforwards | $ 2,000,000 | $ 1,300,000 | ||
Operating loss carryforwards reserved | 1,600,000 | |||
Additional bad debt deductions provided by federal income tax laws | 6,700,000 | |||
Deferred tax liability, bad debt deductions | 1,400,000 | 1,400,000 | ||
Change in Tax Rate, Income Tax Expense (Benefit) | $ 3,600,000 | |||
Tax credit, investment, amount | 4,000,000 | 0 | $ 0 | |
Reconciliation for liabilities [Abstract] | ||||
Balance at beginning of year | $ 645,000 | 645,000 | 525,000 | |
Additions for tax positions related to the current year | 0 | 192,000 | ||
Additions for tax positions related to the prior years | 0 | 31,000 | ||
Reductions for tax positions related to prior years | (211,000) | (103,000) | ||
Balance at end of year | 434,000 | $ 645,000 | $ 525,000 | |
Unrecognized tax benefits that, if recognized, would impact the effective rate | 384,000 | |||
Accrued interest related to unrecognized tax benefits | $ 68,000 |
CAPITAL REQUIREMENTS AND REST_3
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details) | Sep. 30, 2018 | Sep. 30, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 (core) capital (to adjusted total assets), ratio | 8.50% | 7.64% |
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 10.56% | 13.97% |
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier 1 (core) capital ( to risk weighted assets), ratio | 10.97% | 14.46% |
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 6.00% | 6.00% |
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total qualifying capital (to risk-weighted assets), ratio | 13.18% | 18.41% |
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 8.00% | 8.00% |
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
MetaBank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 (core) capital (to adjusted total assets), ratio | 9.75% | 9.64% |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 12.50% | 18.22% |
Tier 1 (core) capital ( to risk weighted assets), ratio | 12.56% | 18.22% |
Total qualifying capital (to risk-weighted assets), ratio | 12.89% | 18.59% |
CAPITAL REQUIREMENTS AND REST_4
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Reconciliation of capital amounts [Abstract] | ||||
Total stockholders' equity | $ 747,726 | $ 434,496 | $ 334,975 | $ 271,335 |
Adjustments: | ||||
LESS: Goodwill, net of associated deferred tax liabilities | 299,456 | |||
LESS: Certain other intangible assets | 64,716 | |||
LESS: Net unrealized gains (losses) on available-for-sale securities | (33,114) | |||
LESS: Non-controlling interest | (3,574) | $ 0 | ||
LESS: Unrealized currency gains (losses) | 3 | |||
Common Equity Tier 1 | 413,091 | |||
Long-term debt and other instruments qualifying as Tier 1 | 13,661 | |||
Tier 1 minority interest not included in common equity tier 1 capital | (2,118) | |||
Total Tier 1 capital | 428,870 | |||
Allowance for loan and lease losses | 13,185 | |||
Subordinated debentures (net of issuance costs) | 73,491 | |||
Total qualifying capital | $ 515,546 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 14, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Unfunded loan commitments | $ 748,800,000 | $ 233,200,000 | ||
Commitment to purchase securities | 1,430,000 | 0 | ||
Commitment to sell securities | 0 | 0 | ||
Off-Balance Sheet valuation allowance | $ 100,000 | $ 200,000 | ||
Inter National Bank [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amount of shortfall in depository account | $ 10,500,000 | |||
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 4,001,025 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) | 12 Months Ended |
Sep. 30, 2018USD ($)Lease_renewals | |
Leases [Abstract] | |
Annual rent, minimum | $ 400 |
Annual rent, maximum | $ 789,000 |
Operating lease term | 20 years |
Operating lease, number of additional renewals | Lease_renewals | 4 |
Operating lease, renewal term | 5 years |
Total minimum rental commitments for operating leases [Abstract] | |
2,019 | $ 3,854,000 |
2,020 | 3,656,000 |
2,021 | 3,429,000 |
2,022 | 2,955,000 |
2,023 | 2,561,000 |
Thereafter | 21,428,000 |
Total Operating Lease Commitments | 37,883,000 |
Total minimum rental commitments for capital leases [Abstract] | |
2,019 | 179,000 |
2,020 | 182,000 |
2,021 | 182,000 |
2,022 | 182,000 |
2,023 | 182,000 |
Thereafter | 2,058,000 |
Total Capital Lease Commitments | 2,965,000 |
Amounts representing interest | 1,089,000 |
Present value of net minimum lease payments | $ 1,876,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | $ 158,534 | $ 108,103 | $ 81,396 | ||||||||||||
Interest expense | $ 11,665 | $ 5,693 | $ 5,966 | $ 4,661 | $ 4,461 | $ 3,918 | $ 3,752 | $ 2,742 | $ 1,836 | $ 844 | $ 691 | $ 720 | 27,985 | 14,873 | 4,091 |
Net interest income (expense) | 130,549 | 93,230 | 77,305 | ||||||||||||
Provision for loan and lease losses | 4,706 | 5,315 | 18,343 | 1,068 | (144) | 1,240 | 8,649 | 843 | 548 | 2,098 | 1,173 | 786 | 29,432 | 10,589 | 4,605 |
Non-interest income | 24,613 | $ 33,225 | $ 97,419 | $ 29,268 | 29,833 | $ 30,820 | $ 92,170 | $ 19,349 | 19,228 | $ 23,807 | $ 40,901 | $ 16,834 | 184,525 | 172,172 | 100,770 |
Non-interest expense | 228,232 | 199,663 | 134,648 | ||||||||||||
Income (loss) before income tax expense (benefit) | 57,410 | 55,150 | 38,822 | ||||||||||||
Total assets | 5,835,067 | 5,228,332 | 4,006,419 | 5,835,067 | 5,228,332 | 4,006,419 | |||||||||
Goodwill | 303,270 | 98,723 | 36,928 | 303,270 | 98,723 | 36,928 | |||||||||
Total deposits | 4,430,987 | 3,223,424 | 2,430,082 | 4,430,987 | 3,223,424 | 2,430,082 | |||||||||
Payments | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 24,487 | 13,845 | 9,711 | ||||||||||||
Interest expense | 1,646 | 503 | 181 | ||||||||||||
Net interest income (expense) | 22,841 | 13,342 | 9,530 | ||||||||||||
Provision for loan and lease losses | 21,344 | 7,613 | 971 | ||||||||||||
Non-interest income | 176,250 | 165,707 | 95,261 | ||||||||||||
Non-interest expense | 126,610 | 132,984 | 77,411 | ||||||||||||
Income (loss) before income tax expense (benefit) | 51,137 | 38,452 | 26,409 | ||||||||||||
Total assets | 186,502 | 185,521 | 87,311 | 186,502 | 185,521 | 87,311 | |||||||||
Goodwill | 87,145 | 87,145 | 25,350 | 87,145 | 87,145 | 25,350 | |||||||||
Total deposits | 2,412,986 | 2,436,893 | 2,131,042 | 2,412,986 | 2,436,893 | 2,131,042 | |||||||||
Banking | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 97,817 | 52,231 | 38,321 | ||||||||||||
Interest expense | 7,012 | 2,723 | 1,331 | ||||||||||||
Net interest income (expense) | 90,805 | 49,508 | 36,990 | ||||||||||||
Provision for loan and lease losses | 8,088 | 2,976 | 3,634 | ||||||||||||
Non-interest income | 13,950 | 4,685 | 4,280 | ||||||||||||
Non-interest expense | 46,982 | 24,520 | 23,001 | ||||||||||||
Income (loss) before income tax expense (benefit) | 49,685 | 26,697 | 14,635 | ||||||||||||
Total assets | 3,413,409 | 1,343,968 | 946,420 | 3,413,409 | 1,343,968 | 946,420 | |||||||||
Goodwill | 216,125 | 11,578 | 11,578 | 216,125 | 11,578 | 11,578 | |||||||||
Total deposits | 746,003 | 229,969 | 299,030 | 746,003 | 229,969 | 299,030 | |||||||||
Corporate Services/Other | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 36,230 | 42,027 | 33,364 | ||||||||||||
Interest expense | 19,327 | 11,647 | 2,579 | ||||||||||||
Net interest income (expense) | 16,903 | 30,380 | 30,785 | ||||||||||||
Provision for loan and lease losses | 0 | 0 | 0 | ||||||||||||
Non-interest income | (5,675) | 1,780 | 1,229 | ||||||||||||
Non-interest expense | 54,640 | 42,159 | 34,236 | ||||||||||||
Income (loss) before income tax expense (benefit) | (43,412) | (9,999) | (2,222) | ||||||||||||
Total assets | 2,235,156 | 3,698,843 | 2,972,688 | 2,235,156 | 3,698,843 | 2,972,688 | |||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Total deposits | $ 1,271,998 | $ 556,562 | $ 10 | $ 1,271,998 | $ 556,562 | $ 10 |
PARENT COMPANY FINANCIAL STAT_3
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||
ASSETS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents | $ 99,977 | $ 1,267,586 | $ 1,267,586 | $ 773,830 | $ 773,830 | $ 27,658 | $ 1,267,586 | $ 773,830 | $ 27,658 | $ 99,977 | $ 1,267,586 | $ 773,830 | $ 27,658 | |||||||
Investment securities held to maturity | 164,304 | 449,840 | ||||||||||||||||||
Other assets | 30,879 | 12,738 | ||||||||||||||||||
Total assets | 5,835,067 | 5,228,332 | 4,006,419 | |||||||||||||||||
LIABILITIES [Abstract] | ||||||||||||||||||||
Long term debt | 88,963 | 85,533 | ||||||||||||||||||
Other liabilities | 133,838 | 78,065 | ||||||||||||||||||
Total liabilities | 5,087,341 | 4,793,836 | ||||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | ||||||||||||||||||||
Common stock | [1] | 393 | 288 | |||||||||||||||||
Additional paid-in capital | 565,811 | 258,144 | ||||||||||||||||||
Retained earnings | 213,048 | 167,164 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | (33,111) | 9,166 | ||||||||||||||||||
Treasury stock, at cost | (1,989) | (266) | ||||||||||||||||||
Total equity attributable to parent | 744,152 | 434,496 | ||||||||||||||||||
Non-controlling interest | 3,574 | 0 | ||||||||||||||||||
Total stockholders' equity | 747,726 | 434,496 | 334,975 | 271,335 | ||||||||||||||||
Total liabilities and stockholders’ equity | 5,835,067 | 5,228,332 | ||||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||||||
Interest expense | 11,665 | $ 5,693 | $ 5,966 | 4,661 | 4,461 | $ 3,918 | $ 3,752 | 2,742 | 1,836 | $ 844 | $ 691 | 720 | 27,985 | 14,873 | 4,091 | |||||
Other expense | 228,232 | 199,663 | 134,648 | |||||||||||||||||
Income tax expense | 5,117 | 10,233 | 5,602 | |||||||||||||||||
Net Income attributable to parent | 8,722 | $ 6,792 | $ 31,436 | 4,670 | 1,744 | $ 9,787 | $ 32,142 | 1,244 | 6,006 | $ 8,873 | $ 14,283 | 4,058 | 51,620 | 44,917 | 33,220 | |||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income before noncontrolling interest | 52,293 | 44,917 | 33,220 | |||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | ||||||||||||||||||||
Depreciation, amortization and accretion, net | 37,722 | 45,048 | 35,617 | |||||||||||||||||
Stock compensation | 11,123 | 10,393 | 486 | |||||||||||||||||
Other assets | 2,633 | (23,408) | (1,968) | |||||||||||||||||
Net cash provided by operating activities | 137,755 | 119,990 | 78,497 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Held to Maturity: Proceeds from maturities and principal repayments | 162,118 | 126,420 | 116,333 | |||||||||||||||||
Net cash used in investing activities | (389,790) | (700,433) | (738,480) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Cash dividends paid | (5,736) | (4,839) | (4,389) | |||||||||||||||||
Short term debt | (11,642) | 0 | 0 | |||||||||||||||||
Long term debt | (258) | 0 | 0 | |||||||||||||||||
Debt issuance costs | 0 | 0 | (1,767) | |||||||||||||||||
Contingent consideration - equity | 0 | (17,253) | 0 | |||||||||||||||||
Exercise of stock options & issuance of common stock | 148 | 650 | 13,858 | |||||||||||||||||
Issuance of restricted stock | 4 | 12 | 0 | |||||||||||||||||
Cash acquired due to acquisitions | 0 | 0 | 75,000 | |||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | (2,598) | (470) | 0 | |||||||||||||||||
Net cash (used in) provided by financing activities | (915,577) | 1,074,199 | 1,406,155 | |||||||||||||||||
Net change in cash and cash equivalents | (1,167,609) | 493,756 | 746,172 | |||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 1,267,586 | 773,830 | 27,658 | 1,267,586 | 773,830 | 27,658 | ||||||||||||||
Cash and cash equivalents at end of year | 99,977 | 1,267,586 | 773,830 | 99,977 | 1,267,586 | 773,830 | ||||||||||||||
Meta Financial [Member] | ||||||||||||||||||||
ASSETS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents | 28,209 | 14,569 | 14,569 | 15,716 | 15,716 | 14,280 | 14,569 | 15,716 | 14,280 | 28,209 | 14,569 | $ 15,716 | $ 14,280 | |||||||
Investment securities held to maturity | 411 | 310 | ||||||||||||||||||
Investment in subsidiaries | 823,215 | 521,021 | ||||||||||||||||||
Other assets | 124 | 96 | ||||||||||||||||||
Total assets | 851,959 | 535,996 | ||||||||||||||||||
LIABILITIES [Abstract] | ||||||||||||||||||||
Long term debt | 87,152 | 83,657 | ||||||||||||||||||
Other liabilities | 17,081 | 17,843 | ||||||||||||||||||
Total liabilities | 104,233 | 101,500 | ||||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | ||||||||||||||||||||
Common stock | 393 | 288 | ||||||||||||||||||
Additional paid-in capital | 565,811 | 258,144 | ||||||||||||||||||
Retained earnings | 213,048 | 167,164 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | (33,111) | 9,166 | ||||||||||||||||||
Treasury stock, at cost | (1,989) | (266) | ||||||||||||||||||
Total equity attributable to parent | 744,152 | 434,496 | ||||||||||||||||||
Non-controlling interest | 3,574 | 0 | ||||||||||||||||||
Total stockholders' equity | 747,726 | 434,496 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ 851,959 | $ 535,996 | ||||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||||||
Interest expense | 5,061 | 4,959 | 1,022 | |||||||||||||||||
Other expense | 663 | 440 | 382 | |||||||||||||||||
Total expense | 5,724 | 5,399 | 1,404 | |||||||||||||||||
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries | (5,724) | (5,399) | (1,404) | |||||||||||||||||
Income tax expense | (1,504) | (1,935) | (519) | |||||||||||||||||
Gain (Loss) before equity in undistributed net income of subsidiaries | (4,220) | (3,464) | (885) | |||||||||||||||||
Equity in undistributed net income of subsidiaries | 55,840 | 48,381 | 34,105 | |||||||||||||||||
Net Income attributable to parent | 51,620 | 44,917 | 33,220 | |||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income before noncontrolling interest | 51,620 | 44,917 | 33,220 | |||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | ||||||||||||||||||||
Depreciation, amortization and accretion, net | 143 | 136 | (22) | |||||||||||||||||
Equity in undistributed net income of subsidiaries | (55,840) | (48,381) | (34,105) | |||||||||||||||||
Stock compensation | 11,123 | 10,393 | 426 | |||||||||||||||||
Other assets | 232 | 7 | (5) | |||||||||||||||||
Accrued expenses and other liabilities | (860) | 16,636 | 541 | |||||||||||||||||
Cash dividend received | 45,315 | 0 | 0 | |||||||||||||||||
Net cash provided by operating activities | 51,733 | 23,708 | 55 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Held to Maturity: Proceeds from maturities and principal repayments | 8 | 0 | 0 | |||||||||||||||||
Capital contributions to subsidiaries | (20,322) | (82,820) | (81,000) | |||||||||||||||||
Net cash used in investing activities | (20,314) | (82,820) | (81,000) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Cash dividends paid | (5,736) | (4,839) | (4,389) | |||||||||||||||||
Short term debt | (11,642) | 0 | 0 | |||||||||||||||||
Long term debt | (258) | 0 | 75,000 | |||||||||||||||||
Debt issuance costs | 0 | 0 | (1,767) | |||||||||||||||||
Purchase of shares by ESOP | 1,606 | 1,174 | 0 | |||||||||||||||||
Contingent consideration - equity | 0 | 24,142 | 0 | |||||||||||||||||
Exercise of stock options & issuance of common stock | 148 | 650 | 13,537 | |||||||||||||||||
Issuance of restricted stock | 4 | 12 | 0 | |||||||||||||||||
Issuance of commons shares due to acquisitions | 295,767 | 37,296 | 0 | |||||||||||||||||
Cash acquired due to acquisitions | 697 | 0 | 0 | |||||||||||||||||
Net increase in investment in subsidiaries | (295,767) | 0 | 0 | |||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | (2,598) | (470) | 0 | |||||||||||||||||
Net cash (used in) provided by financing activities | (17,779) | 57,965 | 82,381 | |||||||||||||||||
Net change in cash and cash equivalents | 13,640 | (1,147) | 1,436 | |||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | $ 14,569 | $ 15,716 | $ 14,280 | 14,569 | 15,716 | 14,280 | ||||||||||||||
Cash and cash equivalents at end of year | $ 28,209 | $ 14,569 | $ 15,716 | $ 28,209 | $ 14,569 | $ 15,716 | ||||||||||||||
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Interest income | $ 60,202 | $ 34,104 | $ 33,371 | $ 30,857 | $ 28,949 | $ 28,861 | $ 27,718 | $ 22,575 | $ 21,729 | $ 20,763 | $ 20,629 | $ 18,275 | ||||||
Interest expense | 11,665 | 5,693 | 5,966 | 4,661 | 4,461 | 3,918 | 3,752 | 2,742 | 1,836 | 844 | 691 | 720 | $ 27,985 | $ 14,873 | $ 4,091 | |||
Net interest income | 48,537 | 28,411 | 27,405 | 26,196 | 24,488 | 24,943 | 23,966 | 19,833 | 19,893 | 19,919 | 19,938 | 17,555 | 130,549 | 93,230 | 77,305 | |||
Provision for loan and lease losses | 4,706 | 5,315 | 18,343 | 1,068 | (144) | 1,240 | 8,649 | 843 | 548 | 2,098 | 1,173 | 786 | 29,432 | 10,589 | 4,605 | |||
Noninterest Income | 24,613 | 33,225 | 97,419 | 29,268 | 29,833 | 30,820 | 92,170 | 19,349 | 19,228 | 23,807 | 40,901 | 16,834 | 184,525 | 172,172 | 100,770 | |||
Net Income attributable to parent | $ 8,722 | $ 6,792 | $ 31,436 | $ 4,670 | $ 1,744 | $ 9,787 | $ 32,142 | $ 1,244 | $ 6,006 | $ 8,873 | $ 14,283 | $ 4,058 | $ 51,620 | $ 44,917 | $ 33,220 | |||
Earnings (loss) per common and common equivalent share [Abstract] | ||||||||||||||||||
Basic (in dollars per share) | $ 0.24 | $ 0.22 | $ 1.07 | $ 0.15 | $ 0.07 | $ 0.35 | $ 1.15 | $ 0.05 | $ 0.23 | $ 0.35 | $ 0.57 | $ 0.16 | $ 1.68 | [1] | $ 1.62 | [1] | $ 1.31 | [1] |
Diluted (in dollars per share) | 0.24 | 0.22 | 1.06 | 0.15 | 0.07 | 0.35 | 1.14 | 0.05 | 0.23 | 0.35 | 0.56 | 0.16 | $ 1.67 | [1] | $ 1.61 | [1] | $ 1.30 | [1] |
Dividend declared per share (in dollars per share) | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | ||||||
[1] | All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018. |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 |
Available For Sale | ||
Total debt securities | 364,065,000 | 586,454,000 |
Total securities | 1,852,025,000 | 1,693,431,000 |
Held To Maturity | ||
Total securities | 160,974,000 | 564,185,000 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 31,638,000 | 292,000 |
Level 1 [Member] | ||
Available For Sale | ||
Total securities | 3,800,000 | 1,445,000 |
Held To Maturity | ||
Total securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 2 [Member] | ||
Available For Sale | ||
Total securities | 1,848,225,000 | 1,691,986,000 |
Held To Maturity | ||
Total securities | 160,974,000 | 564,185,000 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 3 [Member] | ||
Available For Sale | ||
Total securities | 0 | 0 |
Held To Maturity | ||
Total securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 2,927,755,000 | 1,318,402,000 |
Recurring [Member] | ||
Available For Sale | ||
Small business administration securities | 44,337,000 | 57,871,000 |
Obligations of states and political subdivisions | 16,910,000 | 0 |
Non-bank qualified obligations of states and political subdivisions | 1,109,885,000 | 950,829,000 |
Asset backed securities | 313,028,000 | 96,832,000 |
Mortgage-backed securities | 364,065,000 | 586,454,000 |
Total debt securities | 1,848,225,000 | 1,691,986,000 |
Common Equities and Mutual Funds, Available-for-Sale | 3,800,000 | 1,445,000 |
Total securities | 1,852,025,000 | 1,693,431,000 |
Held To Maturity | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 19,368,000 |
Non-bank qualified obligations of states and political subdivisions | 153,546,000 | 432,361,000 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 7,428,000 | 112,456,000 |
Total debt securities | 160,974,000 | 564,185,000 |
Common equities and mutual funds | 0 | 0 |
Total securities | 160,974,000 | 564,185,000 |
Recurring [Member] | Level 1 [Member] | ||
Available For Sale | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common Equities and Mutual Funds, Available-for-Sale | 3,800,000 | 1,445,000 |
Total securities | 3,800,000 | 1,445,000 |
Held To Maturity | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available For Sale | ||
Small business administration securities | 44,337,000 | 57,871,000 |
Obligations of states and political subdivisions | 16,910,000 | 0 |
Non-bank qualified obligations of states and political subdivisions | 1,109,885,000 | 950,829,000 |
Asset backed securities | 313,028,000 | 96,832,000 |
Mortgage-backed securities | 364,065,000 | 586,454,000 |
Total debt securities | 1,848,225,000 | 1,691,986,000 |
Common Equities and Mutual Funds, Available-for-Sale | 0 | 0 |
Total securities | 1,848,225,000 | 1,691,986,000 |
Held To Maturity | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 19,368,000 |
Non-bank qualified obligations of states and political subdivisions | 153,546,000 | 432,361,000 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 7,428,000 | 112,456,000 |
Total debt securities | 160,974,000 | 564,185,000 |
Common equities and mutual funds | 0 | 0 |
Total securities | 160,974,000 | 564,185,000 |
Recurring [Member] | Level 3 [Member] | ||
Available For Sale | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common Equities and Mutual Funds, Available-for-Sale | 0 | 0 |
Total securities | 0 | 0 |
Held To Maturity | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total securities | 0 | 0 |
Nonrecurring [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 36,463,000 | 292,000 |
Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 4,825,000 | |
Nonrecurring [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 31,638,000 | 292,000 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 36,463,000 | 292,000 |
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 4,825,000 | |
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 31,638,000 | 292,000 |
Community Banking [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 1 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 1 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 2 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 2 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 1,076,782,000 | 920,439,000 |
Community Banking [Member] | Level 3 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 220,697,000 | 196,970,000 |
Community Banking [Member] | Level 3 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 731,291,000 | 576,330,000 |
Community Banking [Member] | Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 4,825,000 | |
Community Banking [Member] | Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Community Banking [Member] | Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Community Banking [Member] | Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 4,825,000 | |
National Lending [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 1,850,973,000 | $ 397,963,000 |
National Lending [Member] | Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 4,825,000 | |
National Lending [Member] | Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
National Lending [Member] | Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
National Lending [Member] | Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | $ 4,825,000 |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Range of estimated selling cost (in hundredths) | 4.00% | |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Range of estimated selling cost (in hundredths) | 10.00% | |
Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired Loans, Net | $ 2,927,755 | $ 1,318,402 |
Impaired Loans [Member] | Level 3 [Member] | Valuation, Market Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired Loans, Net | 4,825 | 0 |
Foreclosed Assets [Member] | Level 3 [Member] | Valuation, Market Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired Loans, Net | $ 31,638 | $ 292 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financial assets [Abstract] | ||
Securities available for sale | $ 1,852,025 | $ 1,693,431 |
Securities held to maturity | 160,974 | 564,185 |
Loans held for sale | 15,606 | 0 |
Financial liabilities [Abstract] | ||
Trust preferred securities | 13,661 | 10,310 |
Subordinated debentures | 73,491 | |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 99,977 | 1,267,586 |
Securities available for sale | 3,800 | 1,445 |
Securities held to maturity | 0 | 0 |
Total securities | 3,800 | 1,445 |
Loans held for sale | 0 | |
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 22,016 | 19,380 |
Financial liabilities [Abstract] | ||
Non-interest bearing demand deposits | 2,405,274 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 218,347 | 169,557 |
Certificates of deposits | 0 | 0 |
Wholesale non-maturing deposits | 94,384 | 18,245 |
Wholesale certificates of deposits | 0 | 0 |
Total deposits | 2,718,005 | 2,641,859 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal funds purchased | 422,000 | 987,000 |
Securities sold under agreements to repurchase | 0 | 0 |
Capital leases | 0 | 0 |
Trust preferred securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 7,794 | 2,280 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,848,225 | 1,691,986 |
Securities held to maturity | 160,974 | 564,185 |
Total securities | 2,009,199 | 2,256,171 |
Loans held for sale | 15,606 | |
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Federal Home Loan Bank stock | 23,400 | 61,123 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Non-interest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposits | 273,800 | 123,094 |
Wholesale non-maturing deposits | 0 | 0 |
Wholesale certificates of deposits | 1,432,146 | 457,509 |
Total deposits | 1,705,946 | 580,603 |
Advances from Federal Home Loan Bank | 0 | 415,003 |
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 3,694 | 2,472 |
Capital leases | 1,876 | 1,938 |
Trust preferred securities | 13,866 | 10,447 |
Subordinated debentures | 75,563 | 76,500 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Total securities | 0 | 0 |
Loans held for sale | 0 | |
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 2,927,755 | 1,318,402 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Non-interest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposits | 0 | 0 |
Wholesale non-maturing deposits | 0 | 0 |
Wholesale certificates of deposits | 0 | 0 |
Total deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Capital leases | 0 | 0 |
Trust preferred securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 99,977 | 1,267,586 |
Securities available for sale | 1,852,025 | 1,693,431 |
Securities held to maturity | 172,154 | 563,529 |
Total securities | 2,024,179 | 2,256,960 |
Loans held for sale | 15,606 | |
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 2,944,989 | 1,326,832 |
Federal Home Loan Bank stock | 23,400 | 61,123 |
Accrued interest receivable | 22,016 | 19,380 |
Financial liabilities [Abstract] | ||
Non-interest bearing demand deposits | 2,405,274 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 218,347 | 169,557 |
Certificates of deposits | 276,180 | 123,637 |
Wholesale non-maturing deposits | 94,384 | 18,245 |
Wholesale certificates of deposits | 1,436,802 | 457,928 |
Total deposits | 4,430,987 | 3,223,424 |
Advances from Federal Home Loan Bank | 0 | 415,000 |
Federal funds purchased | 422,000 | 987,000 |
Securities sold under agreements to repurchase | 3,694 | 2,472 |
Capital leases | 1,876 | 1,938 |
Trust preferred securities | 13,661 | 10,310 |
Subordinated debentures | 73,491 | 73,347 |
Accrued interest payable | 7,794 | 2,280 |
Estimated Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 99,977 | 1,267,586 |
Securities available for sale | 1,852,025 | 1,693,431 |
Securities held to maturity | 160,974 | 564,185 |
Total securities | 2,012,999 | 2,257,616 |
Loans held for sale | 15,606 | |
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 2,927,755 | 1,318,402 |
Federal Home Loan Bank stock | 23,400 | 61,123 |
Accrued interest receivable | 22,016 | 19,380 |
Financial liabilities [Abstract] | ||
Non-interest bearing demand deposits | 2,405,274 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 218,347 | 169,557 |
Certificates of deposits | 273,800 | 123,094 |
Wholesale non-maturing deposits | 94,384 | 18,245 |
Wholesale certificates of deposits | 1,432,146 | 457,509 |
Total deposits | 4,423,951 | 3,222,462 |
Advances from Federal Home Loan Bank | 0 | 415,003 |
Federal funds purchased | 422,000 | 987,000 |
Securities sold under agreements to repurchase | 3,694 | 2,472 |
Capital leases | 1,876 | 1,938 |
Trust preferred securities | 13,866 | 10,447 |
Subordinated debentures | 75,563 | 76,500 |
Accrued interest payable | 7,794 | 2,280 |
National Lending [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,850,973 | 397,963 |
National Lending [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,846,283 | 395,729 |
National Lending [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,850,973 | 397,963 |
National Lending [Member] | Commercial Operating [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Commercial Operating [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Commercial Operating [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,506,969 | 255,813 |
National Lending [Member] | Commercial Operating [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,509,849 | 255,308 |
National Lending [Member] | Commercial Operating [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,506,969 | 255,813 |
National Lending [Member] | Consumer [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Consumer [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Consumer [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 342,931 | 141,958 |
National Lending [Member] | Consumer [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 335,361 | 140,229 |
National Lending [Member] | Consumer [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 342,931 | 141,958 |
National Lending [Member] | Tax Services [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Tax Services [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
National Lending [Member] | Tax Services [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,073 | 192 |
National Lending [Member] | Tax Services [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,073 | 192 |
National Lending [Member] | Tax Services [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,073 | 192 |
Community Banking [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,076,782 | 920,439 |
Community Banking [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,098,706 | 931,103 |
Community Banking [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 1,076,782 | 920,439 |
Community Banking [Member] | Commercial Operating [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Commercial Operating [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Commercial Operating [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 41,912 | 30,682 |
Community Banking [Member] | Commercial Operating [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 42,311 | 30,718 |
Community Banking [Member] | Commercial Operating [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 41,912 | 30,682 |
Community Banking [Member] | Consumer [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Consumer [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Consumer [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 24,033 | 22,003 |
Community Banking [Member] | Consumer [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 23,836 | 22,775 |
Community Banking [Member] | Consumer [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 24,033 | 22,003 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 731,291 | 576,330 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 748,579 | 585,510 |
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 731,291 | 576,330 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 220,697 | 196,970 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 223,482 | 196,706 |
Community Banking [Member] | 1-4 Family Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 220,697 | 196,970 |
Community Banking [Member] | Agricultural [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Agricultural [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Community Banking [Member] | Agricultural [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 58,849 | 94,454 |
Community Banking [Member] | Agricultural [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | 60,498 | 95,394 |
Community Banking [Member] | Agricultural [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Impaired Loans, Net | $ 58,849 | $ 94,454 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Aug. 01, 2018 | Sep. 30, 2017 | Dec. 14, 2016 | Nov. 01, 2016 | Sep. 08, 2015 | Dec. 02, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 98,723 | $ 36,928 | $ 36,928 | $ 303,270 | $ 98,723 | |||||
Goodwill [Roll Forward] | ||||||||||
Balance, beginning of period | 98,723 | 36,928 | ||||||||
Acquisitions during the period | 204,547 | 61,795 | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 303,270 | 98,723 | 36,928 | |||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 52,178 | 28,921 | ||||||||
Acquisitions during the period | 28,361 | 46,397 | ||||||||
Amortization during the period | (9,641) | (12,363) | ||||||||
Write-offs during the period | (179) | (10,777) | ||||||||
Balance upon acquisition | 110,143 | 81,782 | ||||||||
Accumulated amortization | (28,468) | (18,827) | ||||||||
Accumulated impairment | (10,956) | (10,777) | ||||||||
Balance, end of period | 70,719 | 52,178 | 28,921 | |||||||
Intangible impairment | $ 18 | 10,248 | 0 | |||||||
Book Amortization Period | 9 years 11 months 1 day | |||||||||
Anticipated intangible amortization [Abstract] | ||||||||||
2,019 | 17,733 | |||||||||
2,020 | 11,017 | |||||||||
2,021 | 8,559 | |||||||||
2,022 | 6,404 | |||||||||
2,023 | 5,077 | |||||||||
Thereafter | 21,929 | |||||||||
Total anticipated intangible amortization | $ 52,178 | 28,921 | 28,921 | 70,719 | 52,178 | |||||
AFS/IBEX Financial Services Inc [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 11,600 | |||||||||
Refund Advantage [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 25,400 | |||||||||
EPS Financial, LLC [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 30,375 | |||||||||
Specialty Consumer Services [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 31,419 | |||||||||
Crestmark Bancorp, Inc. [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 204,547 | |||||||||
Trademark [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 10,051 | 5,149 | ||||||||
Acquisitions during the period | 3,634 | 5,500 | ||||||||
Amortization during the period | (698) | (598) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance upon acquisition | 14,624 | 10,990 | ||||||||
Accumulated amortization | (1,637) | (939) | ||||||||
Accumulated impairment | 0 | |||||||||
Balance, end of period | $ 12,987 | 10,051 | 5,149 | |||||||
Book Amortization Period | 10 years | |||||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 10,051 | 5,149 | 5,149 | 12,987 | 10,051 | |||||
Trademark [Member] | Refund Advantage [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 15 years | |||||||||
Non-Compete [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | $ 1,782 | 127 | ||||||||
Acquisitions during the period | 0 | 2,180 | ||||||||
Amortization during the period | (485) | (525) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance upon acquisition | 2,480 | 2,480 | ||||||||
Accumulated amortization | (1,183) | (698) | ||||||||
Accumulated impairment | 0 | |||||||||
Balance, end of period | 1,297 | 1,782 | 127 | |||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 1,782 | 127 | 127 | 1,297 | 1,782 | |||||
Non-Compete [Member] | Refund Advantage [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 3 years | |||||||||
Customer Relationships [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | $ 31,707 | 20,590 | ||||||||
Acquisitions during the period | 24,278 | 31,770 | ||||||||
Amortization during the period | (7,530) | (10,405) | ||||||||
Write-offs during the period | 0 | (10,248) | ||||||||
Balance upon acquisition | 82,088 | 57,810 | ||||||||
Accumulated amortization | (23,385) | (15,855) | ||||||||
Accumulated impairment | (10,248) | (10,248) | ||||||||
Balance, end of period | $ 48,455 | 31,707 | 20,590 | |||||||
Book Amortization Period | 10 years | |||||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 31,707 | 20,590 | 20,590 | 48,455 | 31,707 | |||||
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 10 years | |||||||||
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 30 years | |||||||||
Technology/Other [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | $ 8,638 | 3,055 | ||||||||
Acquisitions during the period | 449 | 6,947 | ||||||||
Amortization during the period | (928) | (835) | ||||||||
Write-offs during the period | (179) | (529) | ||||||||
Balance upon acquisition | 10,951 | 10,502 | ||||||||
Accumulated amortization | (2,263) | (1,335) | ||||||||
Accumulated impairment | (708) | (529) | ||||||||
Balance, end of period | $ 7,980 | 8,638 | 3,055 | |||||||
Book Amortization Period | 3 years | |||||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 8,638 | $ 3,055 | $ 3,055 | $ 7,980 | $ 8,638 | |||||
Technology/Other [Member] | Refund Advantage [Member] | Minimum [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 3 years | |||||||||
Technology/Other [Member] | Refund Advantage [Member] | Maximum [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Book Amortization Period | 20 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Common Stock [Member] - Subsequent Event [Member] | Oct. 05, 2018shares |
Subsequent Event [Line Items] | |
Stock split, conversion ratio | 3 |
Stock Issued, stock split (in shares) | 39,200,000 |