x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 20-5120010 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (do not check if a smaller reporting company) | Smaller reporting company | x | |||
Emerging growth company | ¨ |
Page Number | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2018 | September 30, 2017 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 27,731 | $ | 41,677 | |||
Other interest-bearing deposits | 8,160 | 8,148 | |||||
Securities available for sale | 119,702 | 95,883 | |||||
Securities held to maturity | 4,809 | 5,453 | |||||
Non-marketable equity securities, at cost | 6,862 | 7,292 | |||||
Loans receivable | 761,087 | 732,995 | |||||
Allowance for loan losses | (6,458 | ) | (5,942 | ) | |||
Loans receivable, net | 754,629 | 727,053 | |||||
Loans held for sale | 1,778 | 2,334 | |||||
Mortgage servicing rights | 1,841 | 1,886 | |||||
Office properties and equipment, net | 9,947 | 9,645 | |||||
Accrued interest receivable | 3,306 | 3,291 | |||||
Intangible assets | 4,966 | 5,449 | |||||
Goodwill | 10,444 | 10,444 | |||||
Foreclosed and repossessed assets, net | 5,392 | 6,017 | |||||
Bank owned life insurance ("BOLI") | 11,581 | 11,343 | |||||
Other assets | 3,922 | 4,749 | |||||
TOTAL ASSETS | $ | 975,070 | $ | 940,664 | |||
Liabilities and Stockholders’ Equity | |||||||
Liabilities: | |||||||
Deposits | $ | 744,536 | $ | 742,504 | |||
Federal Home Loan Bank advances | 58,000 | 90,000 | |||||
Other borrowings | 29,059 | 30,319 | |||||
Other liabilities | 8,264 | 4,358 | |||||
Total liabilities | 839,859 | 867,181 | |||||
Stockholders’ equity: | |||||||
Preferred stock - $0.01 par value, $130.00 per share liquidation, 1,000,000 shares authorized, 500,000 shares issued and outstanding | 61,289 | — | |||||
Common stock— $0.01 par value, authorized 30,000,000; 5,914,379; and 5,888,816 shares issued and outstanding, respectively | 59 | 59 | |||||
Additional paid-in capital | 63,850 | 63,383 | |||||
Retained earnings | 12,904 | 10,764 | |||||
Unearned deferred compensation | (716 | ) | (456 | ) | |||
Accumulated other comprehensive loss | (2,175 | ) | (267 | ) | |||
Total stockholders’ equity | 135,211 | 73,483 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 975,070 | $ | 940,664 |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans | $ | 8,865 | $ | 6,030 | $ | 26,125 | $ | 18,632 | |||||||
Interest on investments | 905 | 591 | 2,409 | 1,476 | |||||||||||
Total interest and dividend income | 9,770 | 6,621 | 28,534 | 20,108 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 1,432 | 1,035 | 3,884 | 3,204 | |||||||||||
Interest on FHLB borrowed funds | 412 | 164 | 987 | 500 | |||||||||||
Interest on other borrowed funds | 446 | 107 | 1,300 | 308 | |||||||||||
Total interest expense | 2,290 | 1,306 | 6,171 | 4,012 | |||||||||||
Net interest income before provision for loan losses | 7,480 | 5,315 | 22,363 | 16,096 | |||||||||||
Provision for loan losses | 650 | — | 850 | — | |||||||||||
Net interest income after provision for loan losses | 6,830 | 5,315 | 21,513 | 16,096 | |||||||||||
Non-interest income: | |||||||||||||||
Service charges on deposit accounts | 413 | 325 | 1,303 | 1,065 | |||||||||||
Interchange income | 338 | 203 | 946 | 575 | |||||||||||
Loan servicing income | 337 | 62 | 1,011 | 205 | |||||||||||
Gain on sale of mortgage loans | 226 | 206 | 709 | 490 | |||||||||||
Loan fees and service charges | 116 | 96 | 357 | 418 | |||||||||||
Insurance commission income | 187 | — | 540 | — | |||||||||||
Settlement proceeds | — | — | — | 283 | |||||||||||
Gains (losses) on available for sale securities | 4 | — | (17 | ) | 29 | ||||||||||
Other | 146 | 99 | 532 | 295 | |||||||||||
Total non-interest income | 1,767 | 991 | 5,381 | 3,360 | |||||||||||
Non-interest expense: | |||||||||||||||
Compensation and related benefits | 3,840 | 2,395 | 11,201 | 7,629 | |||||||||||
Occupancy | 733 | 565 | 2,199 | 2,196 | |||||||||||
Office | 417 | 304 | 1,281 | 897 | |||||||||||
Data processing | 720 | 476 | 2,157 | 1,402 | |||||||||||
Amortization of intangible assets | 161 | 38 | 484 | 119 | |||||||||||
Amortization of mortgage servicing rights | 84 | — | 250 | — | |||||||||||
Advertising, marketing and public relations | 185 | 75 | 480 | 243 | |||||||||||
FDIC premium assessment | 94 | 79 | 351 | 231 | |||||||||||
Professional services | 735 | 382 | 1,746 | 1,218 | |||||||||||
Loss (gain) on repossessed assets, net | 450 | (11 | ) | 464 | (16 | ) | |||||||||
Other | 455 | 316 | 1,507 | 1,050 | |||||||||||
Total non-interest expense | 7,874 | 4,619 | 22,120 | 14,969 | |||||||||||
Income before provision for income taxes | 723 | 1,687 | 4,774 | 4,487 | |||||||||||
Provision for income taxes | 220 | 604 | 1,590 | 1,530 | |||||||||||
Net income attributable to common stockholders | $ | 503 | $ | 1,083 | $ | 3,184 | $ | 2,957 | |||||||
Per share information: | |||||||||||||||
Basic earnings | $ | 0.09 | $ | 0.21 | $ | 0.54 | $ | 0.56 | |||||||
Diluted earnings | $ | 0.08 | $ | 0.20 | $ | 0.52 | $ | 0.56 | |||||||
Cash dividends paid | $ | — | $ | — | $ | 0.20 | $ | 0.16 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
Net income attributable to common stockholders | $ | 503 | $ | 1,083 | $ | 3,184 | $ | 2,957 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Securities available for sale | ||||||||||||||||
Net unrealized losses arising during period | (164 | ) | 514 | (1,755 | ) | (770 | ) | |||||||||
Reclassification adjustment for (losses) gains included in net income | — | — | (16 | ) | 17 | |||||||||||
Other comprehensive loss | (164 | ) | 514 | (1,771 | ) | (753 | ) | |||||||||
Comprehensive income | $ | 339 | $ | 1,597 | $ | 1,413 | $ | 2,204 |
Additional Paid-In Capital | Retained Earnings | Unearned Deferred Compensation | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||
Common Stock | Preferred Stock | |||||||||||||||||||||||||||||
Shares | Amount | Amount | ||||||||||||||||||||||||||||
Balance, October 1, 2017 | 5,888,816 | $ | 59 | $ | — | $ | 63,383 | $ | 10,764 | $ | (456 | ) | $ | (267 | ) | $ | 73,483 | |||||||||||||
Net income | 3,184 | 3,184 | ||||||||||||||||||||||||||||
Preferred stock issued net of costs | 61,289 | 61,289 | ||||||||||||||||||||||||||||
Reclassification of certain deferred tax effects (1) | 137 | (137 | ) | — | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (1,771 | ) | (1,771 | ) | ||||||||||||||||||||||||||
Forfeiture of unvested shares | (11,847 | ) | (124 | ) | 124 | — | ||||||||||||||||||||||||
Surrender of restricted shares of common stock | (1,809 | ) | (25 | ) | (25 | ) | ||||||||||||||||||||||||
Restricted Common stock awarded under the equity incentive plan | 33,230 | 561 | (561 | ) | — | |||||||||||||||||||||||||
Common stock repurchased | (53 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Common stock options exercised | 6,042 | 50 | 50 | |||||||||||||||||||||||||||
Stock option expense | 6 | 6 | ||||||||||||||||||||||||||||
Amortization of restricted stock | 177 | 177 | ||||||||||||||||||||||||||||
Cash dividends ($0.20 per share) | (1,181 | ) | (1,181 | ) | ||||||||||||||||||||||||||
Balance, June 30, 2018 | 5,914,379 | $ | 59 | $ | 61,289 | $ | 63,850 | $ | 12,904 | $ | (716 | ) | $ | (2,175 | ) | $ | 135,211 |
Nine Months Ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income attributable to common stockholders | $ | 3,184 | $ | 2,957 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net amortization of premium/discount on securities | 736 | 575 | |||||
Depreciation | 749 | 674 | |||||
Provision for loan losses | 850 | — | |||||
Net realized loss (gain) on sale of securities | 17 | (29 | ) | ||||
Amortization of intangible assets | 484 | 119 | |||||
Amortization of restricted stock | 177 | 48 | |||||
Net stock based compensation expense | 6 | 23 | |||||
(Gain) loss on sale of office properties and equipment | (4 | ) | 2 | ||||
Provision for deferred income taxes | 137 | 456 | |||||
Net loss (gain) from disposals of foreclosed properties | 489 | (16 | ) | ||||
Provision for valuation allowance on foreclosed properties | — | — | |||||
Gain on sale of loans held for sale, net | (709 | ) | (490 | ) | |||
Proceeds from sale of loans held for sale | 37,989 | 19,530 | |||||
Origination of loans held for sale | (29,689 | ) | (19,857 | ) | |||
Decrease (increase) in accrued interest receivable and other assets | 1,952 | 319 | |||||
Decrease in other liabilities | 3,906 | (1,755 | ) | ||||
Total adjustments | 17,090 | (401 | ) | ||||
Net cash provided by operating activities | 20,274 | 2,556 | |||||
Cash flows from investing activities: | |||||||
Purchase of investment securities | (34,123 | ) | (16,239 | ) | |||
Purchase of bank owned life insurance | — | (3,500 | ) | ||||
Net increase in interest-bearing deposits | (12 | ) | (250 | ) | |||
Proceeds from sale of securities available for sale | 31 | 10,644 | |||||
Principal payments on investment securities | 7,609 | 6,458 | |||||
Proceeds from sale of non-marketable equity securities | 8,114 | 953 | |||||
Purchase of non-marketable equity securities | (7,684 | ) | (417 | ) | |||
Proceeds from sale of foreclosed properties | 2,171 | 713 | |||||
Net (increase) decrease in loans | (36,741 | ) | 53,888 | ||||
Net capital expenditures | (2,562 | ) | (366 | ) | |||
Net cash received from sale of office properties | 73 | 7 | |||||
Net cash (used in) provided by investing activities | (63,124 | ) | 51,891 | ||||
Cash flows from financing activities: | |||||||
Net (decrease) increase in Federal Home Loan Bank advances | (32,000 | ) | 8,609 | ||||
Decrease in other borrowings | (1,260 | ) | — | ||||
Net increase (decrease) in deposits | 2,032 | (38,544 | ) | ||||
Proceeds from sale of preferred stock, net of costs | 61,289 | — | |||||
Surrender of restricted shares of common stock | (25 | ) | (17 | ) | |||
Exercise of common stock options | 50 | 67 | |||||
Repurchase shares of common stock | (1 | ) | (16 | ) | |||
Cash dividends paid | (1,181 | ) | (843 | ) | |||
Net cash provided by (used in) financing activities | 28,904 | (30,744 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (13,946 | ) | 23,703 | ||||
Cash and cash equivalents at beginning of period | 41,677 | 10,046 | |||||
Cash and cash equivalents at end of period | $ | 27,731 | $ | 33,749 |
Supplemental cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest on deposits | $ | 3,907 | $ | 3,172 | |||
Interest on borrowings | $ | 2,119 | $ | 584 | |||
Income taxes | $ | 920 | $ | 979 | |||
Supplemental noncash disclosure: | |||||||
Transfers from loans receivable to foreclosed and repossessed assets | $ | 591 | $ | 543 |
Available for sale securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
June 30, 2018 | |||||||||||||||
U.S. government agency obligations | $ | 37,067 | $ | 7 | $ | 1,088 | $ | 35,986 | |||||||
Obligations of states and political subdivisions | 35,518 | 18 | 558 | 34,978 | |||||||||||
Mortgage-backed securities | 44,653 | 24 | 1,214 | 43,463 | |||||||||||
Agency securities | 104 | 119 | — | 223 | |||||||||||
Corporate debt securities | 5,360 | — | 308 | 5,052 | |||||||||||
Total available for sale securities | $ | 122,702 | $ | 168 | $ | 3,168 | $ | 119,702 | |||||||
September 30, 2017 | |||||||||||||||
U.S. government agency obligations | $ | 18,454 | $ | 35 | $ | 448 | $ | 18,041 | |||||||
Obligations of states and political subdivisions | 35,656 | 270 | 131 | 35,795 | |||||||||||
Mortgage-backed securities | 36,661 | 124 | 311 | 36,474 | |||||||||||
Agency Securities | 147 | 83 | — | 230 | |||||||||||
Corporate debt securities | 5,410 | — | 67 | 5,343 | |||||||||||
Total available for sale securities | $ | 96,328 | $ | 512 | $ | 957 | $ | 95,883 |
Held to maturity securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
June 30, 2018 | |||||||||||||||
Obligations of states and political subdivisions | $ | 1,308 | $ | — | $ | 1 | $ | 1,307 | |||||||
Mortgage-backed securities | 3,501 | 44 | 25 | 3,520 | |||||||||||
Total held to maturity securities | $ | 4,809 | $ | 44 | $ | 26 | $ | 4,827 | |||||||
September 30, 2017 | |||||||||||||||
Obligations of states and political subdivisions | $ | 1,311 | $ | 17 | $ | — | $ | 1,328 | |||||||
Mortgage-backed securities | 4,142 | 136 | 1 | 4,277 | |||||||||||
Total held to maturity securities | $ | 5,453 | $ | 153 | $ | 1 | $ | 5,605 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Available for sale securities | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||
Due in one year or less | $ | 1,663 | $ | 1,657 | $ | 160 | $ | 160 | |||||||
Due after one year through five years | 17,493 | 17,331 | 15,008 | 15,056 | |||||||||||
Due after five years through ten years | 41,136 | 39,826 | 30,586 | 30,330 | |||||||||||
Due after ten years | 17,653 | 17,202 | 13,766 | 13,633 | |||||||||||
$ | 77,945 | $ | 76,016 | $ | 59,520 | $ | 59,179 | ||||||||
Mortgage backed securities | 44,653 | 43,463 | 36,661 | 36,474 | |||||||||||
Securities without contractual maturities | 104 | 223 | 147 | 230 | |||||||||||
Total available for sale securities | $ | 122,702 | $ | 119,702 | $ | 96,328 | $ | 95,883 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Held to maturity securities | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||
Due after one year through five years | $ | 1,308 | $ | 1,307 | $ | 1,311 | $ | 1,328 | |||||||
Mortgage backed securities | 3,501 | 3,520 | 4,142 | 4,277 | |||||||||||
Total held to maturity securities | $ | 4,809 | $ | 4,827 | $ | 5,453 | $ | 5,605 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Available for sale securities | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||
U.S. government agency obligations | $ | 25,149 | $ | 358 | $ | 10,281 | $ | 730 | $ | 35,430 | $ | 1,088 | ||||||||||||
Obligations of states and political subdivisions | 26,592 | 390 | 3,666 | 168 | 30,258 | 558 | ||||||||||||||||||
Mortgage backed securities | 30,404 | 753 | 8,885 | 461 | 39,289 | 1,214 | ||||||||||||||||||
Corporate debt securities | 5,052 | 308 | — | — | 5,052 | 308 | ||||||||||||||||||
Total | $ | 87,197 | $ | 1,809 | $ | 22,832 | $ | 1,359 | $ | 110,029 | $ | 3,168 | ||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
U.S. government agency obligations | $ | 8,296 | $ | 186 | $ | 6,932 | $ | 262 | $ | 15,228 | $ | 448 | ||||||||||||
Obligations of states and political subdivisions | 8,170 | 62 | 3,701 | 69 | 11,871 | 131 | ||||||||||||||||||
Mortgage backed securities | 14,167 | 96 | 9,753 | 215 | 23,920 | 311 | ||||||||||||||||||
Corporate debt securities | 5,343 | 67 | — | — | 5,343 | 67 | ||||||||||||||||||
Total | $ | 35,976 | $ | 411 | $ | 20,386 | $ | 546 | $ | 56,362 | $ | 957 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Held to maturity securities | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,132 | $ | 1 | $ | — | $ | — | $ | 1,132 | $ | 1 | ||||||||||||
Mortgage-backed securities | 2,409 | 25 | — | — | 2,409 | 25 | ||||||||||||||||||
Total | $ | 3,541 | $ | 26 | $ | — | $ | — | $ | 3,541 | $ | 26 | ||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Mortgage-backed securities | 406 | 1 | — | — | 406 | 1 | ||||||||||||||||||
Total | $ | 406 | $ | 1 | $ | — | $ | — | $ | 406 | $ | 1 |
1 to 5 | 6 | 7 | 8 | 9 | TOTAL | |||||||||||||||||||
Originated Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 119,680 | $ | — | $ | 2,348 | $ | — | $ | — | $ | 122,028 | ||||||||||||
Purchased HELOC loans | 15,237 | — | — | — | — | 15,237 | ||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||
Commercial real estate | 156,560 | 200 | — | — | — | 156,760 | ||||||||||||||||||
Agricultural real estate | 22,709 | 530 | 500 | — | — | 23,739 | ||||||||||||||||||
Multi-family real estate | 42,230 | — | 130 | — | — | 42,360 | ||||||||||||||||||
Construction and land development | 11,212 | — | — | — | — | 11,212 | ||||||||||||||||||
Consumer non-real estate: | ||||||||||||||||||||||||
Originated indirect paper | 66,649 | — | 142 | — | — | 66,791 | ||||||||||||||||||
Purchased indirect paper | 19,801 | — | — | — | — | 19,801 | ||||||||||||||||||
Other Consumer | 15,444 | — | 105 | — | — | 15,549 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||||||||||
Commercial non-real estate | 58,620 | — | 17 | — | — | 58,637 | ||||||||||||||||||
Agricultural non-real estate | 15,360 | 960 | 472 | — | — | 16,792 | ||||||||||||||||||
Total originated loans | $ | 543,502 | $ | 1,690 | $ | 3,714 | $ | — | $ | — | $ | 548,906 | ||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 78,392 | $ | — | $ | 1,936 | $ | — | $ | — | $ | 80,328 | ||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||
Commercial real estate | 46,926 | 2,046 | 2,794 | — | — | 51,766 | ||||||||||||||||||
Agricultural real estate | 42,921 | 903 | 3,318 | — | — | 47,142 | ||||||||||||||||||
Multi-family real estate | 3,158 | — | 189 | — | — | 3,347 | ||||||||||||||||||
Construction and land development | 3,548 | — | 498 | — | — | 4,046 | ||||||||||||||||||
Consumer non-real estate: | ||||||||||||||||||||||||
Other Consumer | 3,485 | — | 29 | — | — | 3,514 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||||||||||
Commercial non-real estate | 14,547 | 253 | 1,326 | — | — | 16,126 | ||||||||||||||||||
Agricultural non-real estate | 9,192 | 182 | 200 | — | — | 9,574 | ||||||||||||||||||
Total acquired loans | $ | 202,169 | $ | 3,384 | $ | 10,290 | $ | — | $ | — | $ | 215,843 | ||||||||||||
Total Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 198,072 | $ | — | $ | 4,284 | $ | — | $ | — | $ | 202,356 | ||||||||||||
Purchased HELOC loans | 15,237 | — | — | — | — | 15,237 | ||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||
Commercial real estate | 203,486 | 2,246 | 2,794 | — | — | 208,526 | ||||||||||||||||||
Agricultural real estate | 65,630 | 1,433 | 3,817 | — | — | 70,881 | ||||||||||||||||||
Multi-family real estate | 45,388 | — | 319 | — | — | 45,707 | ||||||||||||||||||
Construction and land development | 14,760 | — | 498 | — | — | 15,258 | ||||||||||||||||||
Consumer non-real estate: | ||||||||||||||||||||||||
Originated indirect paper | 66,649 | — | 142 | — | — | 66,791 | ||||||||||||||||||
Purchased indirect paper | 19,801 | — | — | — | — | 19,801 | ||||||||||||||||||
Other Consumer | 18,929 | — | 134 | — | — | 19,063 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||||||||||
Commercial non-real estate | 73,167 | 253 | 1,342 | — | — | 74,763 | ||||||||||||||||||
Agricultural non-real estate | 24,552 | 1,142 | 672 | — | — | 26,366 | ||||||||||||||||||
Gross loans | $ | 745,671 | $ | 5,074 | $ | 14,004 | $ | — | $ | — | $ | 764,749 | ||||||||||||
Less: | ||||||||||||||||||||||||
Unearned net deferred fees and costs and loans in process | 693 | |||||||||||||||||||||||
Unamortized discount on acquired loans | (4,355 | ) | ||||||||||||||||||||||
Allowance for loan losses | (6,458 | ) | ||||||||||||||||||||||
Loans receivable, net | $ | 754,629 |
1 to 5 | 6 | 7 | 8 | 9 | TOTAL | |||||||||||||||||||
Originated Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 130,837 | $ | — | $ | 1,543 | $ | — | $ | — | $ | 132,380 | ||||||||||||
Purchased HELOC loans | 18,071 | — | — | — | — | 18,071 | ||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||
Commercial real estate | 96,953 | 49 | 153 | — | — | 97,155 | ||||||||||||||||||
Agricultural real estate | 10,051 | 497 | 80 | — | — | 10,628 | ||||||||||||||||||
Multi-family real estate | 24,338 | — | 148 | — | — | 24,486 | ||||||||||||||||||
Construction and land development | 12,399 | — | — | — | — | 12,399 | ||||||||||||||||||
Consumer non-real estate: | ||||||||||||||||||||||||
Originated indirect paper | 85,330 | 8 | 394 | — | — | 85,732 | ||||||||||||||||||
Purchased indirect paper | 29,555 | — | — | — | — | 29,555 | ||||||||||||||||||
Other Consumer | 14,361 | — | 135 | — | — | 14,496 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||||||||||
Commercial non-real estate | 35,102 | — | 96 | — | — | 35,198 | ||||||||||||||||||
Agricultural non-real estate | 10,798 | 708 | 987 | — | — | 12,493 | ||||||||||||||||||
Total originated loans | $ | 467,795 | $ | 1,262 | $ | 3,536 | $ | — | $ | — | $ | 472,593 | ||||||||||||
Acquired Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 94,932 | $ | 873 | $ | 1,378 | $ | — | $ | — | $ | 97,183 | ||||||||||||
Commercial/Agricultural real estate: | — | |||||||||||||||||||||||
Commercial real estate | 57,795 | 1,814 | 3,198 | — | — | 62,807 | ||||||||||||||||||
Agricultural real estate | 51,516 | 266 | 5,592 | — | — | 57,374 | ||||||||||||||||||
Multi-family real estate | 1,519 | — | 223 | — | — | 1,742 | ||||||||||||||||||
Construction and land development | 6,739 | — | 570 | — | — | 7,309 | ||||||||||||||||||
Consumer non-real estate: | — | |||||||||||||||||||||||
Other Consumer | 6,130 | — | 42 | — | — | 6,172 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | — | |||||||||||||||||||||||
Commercial non-real estate | 18,257 | 372 | 1,424 | — | — | 20,053 | ||||||||||||||||||
Agricultural non-real estate | 11,259 | 28 | 93 | — | — | 11,380 | ||||||||||||||||||
Total acquired loans | $ | 248,147 | $ | 3,353 | $ | 12,520 | $ | — | $ | — | $ | 264,020 | ||||||||||||
Total Loans: | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One to four family | $ | 225,769 | $ | 873 | $ | 2,921 | $ | — | $ | — | $ | 229,563 | ||||||||||||
Purchased HELOC loans | 18,071 | — | — | — | — | 18,071 | ||||||||||||||||||
Commercial/Agricultural real estate: | — | — | ||||||||||||||||||||||
Commercial real estate | 154,748 | 1,863 | 3,351 | — | — | 159,962 | ||||||||||||||||||
Agricultural real estate | 61,567 | 763 | 5,672 | — | — | 68,002 | ||||||||||||||||||
Multi-family real estate | 25,857 | — | 371 | — | — | 26,228 | ||||||||||||||||||
Construction and land development | 19,138 | — | 570 | — | — | 19,708 | ||||||||||||||||||
Consumer non-real estate: | — | — | ||||||||||||||||||||||
Originated indirect paper | 85,330 | 8 | 394 | — | — | 85,732 | ||||||||||||||||||
Purchased indirect paper | 29,555 | — | — | — | — | 29,555 | ||||||||||||||||||
Other Consumer | 20,491 | — | 177 | — | — | 20,668 | ||||||||||||||||||
Commercial/Agricultural non-real estate: | — | — | ||||||||||||||||||||||
Commercial non-real estate | 53,359 | 372 | 1,520 | — | — | 55,251 | ||||||||||||||||||
Agricultural non-real estate | 22,057 | 736 | 1,080 | — | — | 23,873 | ||||||||||||||||||
Gross loans | $ | 715,942 | $ | 4,615 | $ | 16,056 | $ | — | $ | — | $ | 736,613 | ||||||||||||
Less: | ||||||||||||||||||||||||
Unearned net deferred fees and costs and loans in process | 1,471 | |||||||||||||||||||||||
Unamortized discount on acquired loans | (5,089 | ) | ||||||||||||||||||||||
Allowance for loan losses | (5,942 | ) | ||||||||||||||||||||||
Loans receivable, net | $ | 727,053 |
Residential Real Estate | Commercial/Agriculture Real Estate | Consumer Non-real Estate | Commercial/Agricultural Non-real Estate | Unallocated | Total | ||||||||||||||||||
Nine Months Ended June 30, 2018: | |||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||
Beginning balance, October 1, 2017 | $ | 1,458 | $ | 2,523 | $ | 936 | $ | 897 | $ | 128 | $ | 5,942 | |||||||||||
Charge-offs | (78 | ) | (1 | ) | (265 | ) | (5 | ) | — | (349 | ) | ||||||||||||
Recoveries | 46 | — | 93 | 12 | — | 151 | |||||||||||||||||
Provision | — | 455 | 35 | 130 | — | 620 | |||||||||||||||||
Allowance allocation adjustment | (351 | ) | 54 | (112 | ) | (22 | ) | 151 | (280 | ) | |||||||||||||
Total allowance on originated loans | 1,075 | 3,031 | 687 | 1,012 | 279 | 6,084 | |||||||||||||||||
Purchased credit impaired loans | — | — | — | — | — | — | |||||||||||||||||
Other acquired loans: | — | — | — | — | — | — | |||||||||||||||||
Beginning balance, October 1, 2017 | — | — | — | — | — | — | |||||||||||||||||
Charge-offs | (42 | ) | (73 | ) | (30 | ) | — | — | (145 | ) | |||||||||||||
Recoveries | 6 | — | 3 | — | — | 9 | |||||||||||||||||
Provision | 70 | 120 | 25 | 15 | — | 230 | |||||||||||||||||
Allowance allocation adjustment | 114 | 83 | 65 | 18 | — | 280 | |||||||||||||||||
Total allowance on other acquired loans | 148 | 130 | 63 | 33 | — | 374 | |||||||||||||||||
Total Allowance on acquired loans | 148 | 130 | 63 | 33 | — | 374 | |||||||||||||||||
Ending balance, June 30, 2018 | $ | 1,223 | $ | 3,161 | $ | 750 | $ | 1,045 | $ | 279 | $ | 6,458 | |||||||||||
Allowance for Loan Losses at June 30, 2018: | |||||||||||||||||||||||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | $ | 191 | $ | — | $ | 25 | $ | 25 | $ | — | $ | 241 | |||||||||||
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | $ | 1,032 | $ | 3,161 | $ | 725 | $ | 1,020 | $ | 279 | $ | 6,217 | |||||||||||
Loans Receivable as of June 30, 2018: | — | ||||||||||||||||||||||
Ending balance of originated loans | $ | 137,265 | $ | 234,071 | $ | 102,141 | $ | 75,429 | $ | — | $ | 548,906 | |||||||||||
Ending balance of purchased credit-impaired loans | 456 | 7,558 | — | 1,612 | — | 9,626 | |||||||||||||||||
Ending balance of other acquired loans | 79,872 | 98,743 | 3,514 | 24,088 | — | 206,217 | |||||||||||||||||
Ending balance of loans | $ | 217,593 | $ | 340,372 | $ | 105,655 | $ | 101,129 | $ | — | $ | 764,749 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 7,668 | $ | 8,228 | $ | 397 | $ | 2,472 | $ | — | $ | 18,765 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 209,925 | $ | 332,144 | $ | 105,258 | $ | 98,657 | $ | — | $ | 745,984 |
Residential Real Estate | Commercial/Agriculture Real Estate | Consumer Non-real Estate | Commercial/Agricultural Non-real Estate | Unallocated | Total | ||||||||||||||||||
Nine months ended June 30, 2017: | |||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||
Beginning balance, October 1, 2016 | $ | 2,039 | $ | 1,883 | $ | 1,466 | $ | 652 | $ | 28 | $ | 6,068 | |||||||||||
Charge-offs | (159 | ) | — | (294 | ) | (9 | ) | — | (462 | ) | |||||||||||||
Recoveries | 8 | — | 141 | 1 | — | 150 | |||||||||||||||||
Provision | — | — | — | — | — | — | |||||||||||||||||
Allowance allocation adjustment | (427 | ) | 461 | (234 | ) | 88 | 112 | — | |||||||||||||||
Total Allowance on originated loans | $ | 1,461 | $ | 2,344 | $ | 1,079 | $ | 732 | $ | 140 | $ | 5,756 | |||||||||||
Purchased credit impaired loans | — | — | — | — | — | — | |||||||||||||||||
Other acquired loans | — | — | — | — | — | — | |||||||||||||||||
Total Allowance on acquired loans | — | — | — | — | — | — | |||||||||||||||||
Ending balance, June 30, 2017 | $ | 1,461 | $ | 2,344 | $ | 1,079 | $ | 732 | $ | 140 | $ | 5,756 | |||||||||||
Allowance for Loan Losses at June 30, 2017: | |||||||||||||||||||||||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | $ | 203 | $ | — | $ | 32 | $ | 6 | $ | — | $ | 241 | |||||||||||
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | $ | 1,258 | $ | 2,344 | $ | 1,047 | $ | 726 | $ | 140 | $ | 5,515 | |||||||||||
Loans Receivable as of June 30, 2017: | |||||||||||||||||||||||
Ending balance of originated loans | $ | 136,527 | $ | 123,183 | $ | 141,984 | $ | 34,521 | $ | — | $ | 436,215 | |||||||||||
Ending balance of purchased credit-impaired loans | 247 | 1,813 | 4 | 905 | — | 2,969 | |||||||||||||||||
Ending balance of other acquired loans | 19,961 | 46,310 | 411 | 13,537 | — | 80,219 | |||||||||||||||||
Ending balance of loans | $ | 156,735 | $ | 171,306 | $ | 142,399 | $ | 48,963 | $ | — | $ | 519,403 | |||||||||||
Ending balance: individually evaluated for impairment | $ | 4,170 | $ | 266 | $ | 551 | $ | 659 | $ | — | $ | 5,646 | |||||||||||
Ending balance: collectively evaluated for impairment | $ | 152,565 | $ | 171,040 | $ | 141,848 | $ | 48,304 | $ | — | $ | 513,757 |
Residential Real Estate | Commercial/Agriculture Real Estate Loans | Consumer non-Real Estate | Commercial/Agriculture non-Real Estate | Totals | |||||||||||||||||||||||||||||||||||
June 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2017 | ||||||||||||||||||||||||||||||
Performing loans | |||||||||||||||||||||||||||||||||||||||
Performing TDR loans | $ | 3,481 | $ | 3,085 | $ | 1,663 | $ | 1,890 | $ | 122 | $ | 167 | $ | 496 | $ | 88 | $ | 5,762 | $ | 5,230 | |||||||||||||||||||
Performing loans other | 211,871 | 242,198 | 335,972 | 268,619 | 105,305 | 131,695 | 98,502 | 77,213 | 751,650 | 719,725 | |||||||||||||||||||||||||||||
Total performing loans | 215,352 | 245,283 | 337,635 | 270,509 | 105,427 | 131,862 | 98,998 | 77,301 | 757,412 | 724,955 | |||||||||||||||||||||||||||||
Nonperforming loans (1) | |||||||||||||||||||||||||||||||||||||||
Nonperforming TDR loans | 508 | 593 | 540 | — | 17 | 28 | 1,383 | — | 2,448 | 621 | |||||||||||||||||||||||||||||
Nonperforming loans other | 1,733 | 1,758 | 2,197 | 3,391 | 211 | 447 | 748 | 1,823 | 4,889 | 7,419 | |||||||||||||||||||||||||||||
Total nonperforming loans | 2,241 | 2,351 | 2,737 | 3,391 | 228 | 475 | 2,131 | 1,823 | 7,337 | 8,040 | |||||||||||||||||||||||||||||
Total loans | $ | 217,593 | $ | 247,634 | $ | 340,372 | $ | 273,900 | $ | 105,655 | $ | 132,337 | $ | 101,129 | $ | 79,124 | $ | 764,749 | $ | 732,995 |
(1) | Nonperforming loans are either 90+ days past due or nonaccrual. |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 89 Days | Total Past Due | Current | Total Loans | Nonaccrual Loans | Recorded Investment > 89 Days and Accruing | ||||||||||||||||||||||||
June 30, 2018 | |||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||
One to four family | $ | 2,966 | $ | 906 | $ | 1,352 | $ | 5,224 | $ | 197,132 | $ | 202,356 | $ | 1,681 | $ | 560 | |||||||||||||||
Purchased HELOC loans | 404 | — | — | 404 | 14,833 | 15,237 | — | — | |||||||||||||||||||||||
Commercial/Agricultural real estate: | |||||||||||||||||||||||||||||||
Commercial real estate | 865 | — | 197 | 1,062 | 207,464 | 208,526 | 400 | — | |||||||||||||||||||||||
Agricultural real estate | 975 | 949 | 2,210 | 4,134 | 66,747 | 70,881 | 2,210 | — | |||||||||||||||||||||||
Multi-family real estate | — | — | 130 | 130 | 45,577 | 45,707 | 130 | — | |||||||||||||||||||||||
Construction and land development | 220 | — | 85 | 305 | 14,953 | 15,258 | 123 | — | |||||||||||||||||||||||
Consumer non-real estate: | |||||||||||||||||||||||||||||||
Originated indirect paper | 169 | 20 | 27 | 216 | 66,575 | 66,791 | 45 | 5 | |||||||||||||||||||||||
Purchased indirect paper | 410 | 205 | 136 | 751 | 19,050 | 19,801 | — | 135 | |||||||||||||||||||||||
Other Consumer | 198 | 28 | 18 | 244 | 18,819 | 19,063 | 33 | 10 | |||||||||||||||||||||||
Commercial/Agricultural non-real estate: | |||||||||||||||||||||||||||||||
Commercial non-real estate | 1,061 | 165 | 181 | 1,407 | 73,356 | 74,763 | 1,257 | — | |||||||||||||||||||||||
Agricultural non-real estate | 785 | 155 | 581 | 1,521 | 24,845 | 26,366 | 748 | — | |||||||||||||||||||||||
Total | $ | 8,053 | $ | 2,428 | $ | 4,917 | $ | 15,398 | $ | 749,351 | $ | 764,749 | $ | 6,627 | $ | 710 | |||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||
One to four family | $ | 2,811 | $ | 393 | $ | 1,228 | $ | 4,432 | $ | 225,131 | $ | 229,563 | $ | 2,200 | $ | 151 | |||||||||||||||
Purchased HELOC loans | $ | 250 | — | — | 250 | 17,821 | 18,071 | — | — | ||||||||||||||||||||||
Commercial/Agricultural real estate: | |||||||||||||||||||||||||||||||
Commercial real estate | 332 | 70 | 282 | 684 | 159,278 | 159,962 | 572 | — | |||||||||||||||||||||||
Agricultural real estate | 57 | — | 2,405 | 2,462 | 65,540 | 68,002 | 2,723 | 96 | |||||||||||||||||||||||
Multi-family real estate | — | — | — | — | 26,228 | 26,228 | — | — | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 19,708 | 19,708 | — | — | |||||||||||||||||||||||
Consumer non-real estate: | |||||||||||||||||||||||||||||||
Originated indirect paper | 426 | 112 | 123 | 661 | 85,071 | 85,732 | 74 | 80 | |||||||||||||||||||||||
Purchased indirect paper | 601 | 305 | 221 | 1,127 | 28,428 | 29,555 | — | 221 | |||||||||||||||||||||||
Other Consumer | 120 | 79 | 57 | 256 | 20,412 | 20,668 | 76 | 25 | |||||||||||||||||||||||
Commercial/Agricultural non-real estate: | |||||||||||||||||||||||||||||||
Commercial non-real estate | 75 | 23 | 156 | 254 | 54,997 | 55,251 | 1,618 | — | |||||||||||||||||||||||
Agricultural non-real estate | 757 | — | 120 | 877 | 22,996 | 23,873 | 189 | 16 | |||||||||||||||||||||||
Total | $ | 5,429 | $ | 982 | $ | 4,592 | $ | 11,003 | $ | 725,610 | $ | 736,613 | $ | 7,452 | $ | 589 |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
June 30, 2018 | |||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||
Residential real estate | $ | 6,220 | $ | 6,220 | $ | — | $ | 5,117 | $ | 242 | |||||||||
Commercial/agriculture real estate | 11,866 | 11,866 | — | 12,246 | 312 | ||||||||||||||
Consumer non-real estate | 315 | 315 | — | 374 | 28 | ||||||||||||||
Commercial/agricultural non-real estate | 2,967 | 2,967 | — | 4,381 | 84 | ||||||||||||||
Total | $ | 21,368 | $ | 21,368 | $ | — | $ | 22,118 | $ | 666 | |||||||||
With An Allowance Recorded: | |||||||||||||||||||
Residential real estate | $ | 1,685 | $ | 1,685 | $ | 192 | $ | 1,442 | $ | 38 | |||||||||
Commercial/agriculture real estate | — | — | — | — | — | ||||||||||||||
Consumer non-real estate | 81 | 81 | 25 | 175 | — | ||||||||||||||
Commercial/agricultural non-real estate | 99 | 99 | 25 | 61 | — | ||||||||||||||
Total | $ | 1,865 | $ | 1,865 | $ | 242 | $ | 1,678 | $ | 38 | |||||||||
June 30, 2018 Totals: | |||||||||||||||||||
Residential real estate | $ | 7,905 | $ | 7,905 | $ | 192 | $ | 6,559 | $ | 280 | |||||||||
Commercial/agriculture real estate | 11,866 | 11,866 | — | 12,246 | 312 | ||||||||||||||
Consumer non-real estate | 396 | 396 | 25 | 549 | 28 | ||||||||||||||
Commercial/agricultural non-real estate | 3,066 | 3,066 | 25 | 4,442 | 84 | ||||||||||||||
Total | $ | 23,233 | $ | 23,233 | $ | 242 | $ | 23,796 | $ | 704 |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||
Residential real estate | $ | 4,015 | $ | 4,015 | $ | — | $ | 3,440 | $ | 9 | |||||||||
Commercial/agriculture real estate | 12,626 | 12,626 | — | 4,460 | 2 | ||||||||||||||
Consumer non-real estate | 433 | 433 | — | 340 | 16 | ||||||||||||||
Commercial/agricultural non-real estate | 5,795 | 5,795 | — | 2,628 | 11 | ||||||||||||||
Total | $ | 22,869 | $ | 22,869 | $ | — | $ | 10,868 | $ | 38 | |||||||||
With An Allowance Recorded: | |||||||||||||||||||
Residential real estate | $ | 1,198 | $ | 1,198 | $ | 214 | $ | 1,545 | $ | 2 | |||||||||
Commercial/agriculture real estate | — | — | — | — | — | ||||||||||||||
Consumer non-real estate | 269 | 269 | 65 | 306 | — | ||||||||||||||
Commercial/agricultural non-real estate | 23 | 23 | 23 | 101 | — | ||||||||||||||
Total | $ | 1,490 | $ | 1,490 | $ | 302 | $ | 1,952 | $ | 2 | |||||||||
September 30, 2017 Totals: | |||||||||||||||||||
Residential real estate | $ | 5,213 | $ | 5,213 | $ | 214 | $ | 4,985 | $ | 11 | |||||||||
Commercial/agriculture real estate | 12,626 | 12,626 | — | 4,460 | 2 | ||||||||||||||
Consumer non-real estate | 702 | 702 | 65 | 646 | 16 | ||||||||||||||
Commercial/agricultural non-real estate | 5,818 | 5,818 | 23 | 2,729 | 11 | ||||||||||||||
Total | $ | 24,359 | $ | 24,359 | $ | 302 | $ | 12,820 | $ | 40 |
June 30, 2018 | September 30, 2017 | |||||||
Troubled debt restructure loans: | ||||||||
Accrual status | $ | 5,860 | $ | 5,230 | ||||
Non-accrual status | 2,350 | 621 | ||||||
Total | $ | 8,210 | $ | 5,851 |
Number of Contracts | Modified Rate | Modified Payment | Modified Under- writing | Other | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserve | ||||||||||||||||||||||||
Nine months ended June 30, 2018 | |||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||
Residential real estate | 8 | $ | — | $ | — | $ | 710 | $ | 49 | $ | 759 | $ | 759 | $ | — | ||||||||||||||||
Commercial/Agricultural real estate | 9 | — | 410 | 759 | 568 | 1,737 | 1,737 | — | |||||||||||||||||||||||
Consumer non-real estate | 1 | — | — | 3 | — | 3 | 3 | — | |||||||||||||||||||||||
Commercial/Agricultural non-real estate | 8 | — | 84 | 486 | 1,300 | 1,870 | 1,870 | — | |||||||||||||||||||||||
Totals | 26 | $ | — | $ | 494 | $ | 1,958 | $ | 1,917 | $ | 4,369 | $ | 4,369 | $ | — |
Number of Contracts | Modified Rate | Modified Payment | Modified Under- writing | Other | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserve | ||||||||||||||||||||||||
Year ended September 30, 2017 | |||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||
Residential real estate | 9 | $ | — | $ | — | $ | 679 | $ | 236 | $ | 915 | $ | 915 | $ | 24 | ||||||||||||||||
Commercial/Agricultural real estate | 8 | — | — | 1,822 | 68 | 1,890 | 1,890 | — | |||||||||||||||||||||||
Consumer non-real estate | 4 | — | — | 4 | 28 | 32 | 32 | — | |||||||||||||||||||||||
Commercial/Agricultural non-real estate | 2 | — | — | — | 93 | 93 | 93 | — | |||||||||||||||||||||||
Totals | 23 | $ | — | $ | — | $ | 2,505 | $ | 425 | $ | 2,930 | $ | 2,930 | $ | 24 |
June 30, 2018 | September 30, 2017 | ||||||||||||
Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | ||||||||||
Troubled debt restructurings: | |||||||||||||
Residential real estate | 35 | $ | 3,989 | 32 | $ | 3,678 | |||||||
Commercial/Agricultural real estate | 16 | 2,203 | 8 | 1,890 | |||||||||
Consumer non-real estate | 18 | 139 | 20 | 195 | |||||||||
Commercial/Agricultural non-real estate | 9 | 1,879 | 2 | 88 | |||||||||
Total troubled debt restructurings | 78 | $ | 8,210 | 62 | $ | 5,851 |
June 30, 2018 | September 30, 2017 | ||||||||||||
Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | ||||||||||
Troubled debt restructurings: | |||||||||||||
Residential real estate | 3 | $ | 409 | 4 | $ | 593 | |||||||
Commercial/Agricultural real estate | 3 | 665 | — | — | |||||||||
Consumer non-real estate | 3 | 17 | 3 | 28 | |||||||||
Commercial/Agricultural non-real estate | 5 | 1,258 | — | — | |||||||||
Total troubled debt restructurings | 14 | $ | 2,349 | 7 | $ | 621 |
June 30, 2018 | |||
Accountable for under ASC 310-30 (Purchased Credit Impaired "PCI" loans) | |||
Outstanding balance | $ | 9,626 | |
Carrying amount | $ | 7,738 | |
Accountable for under ASC 310-20 (non-PCI loans) | |||
Outstanding balance | $ | 206,217 | |
Carrying amount | $ | 203,750 | |
Total acquired loans | |||
Outstanding balance | $ | 215,843 | |
Carrying amount | $ | 211,488 |
June 30, 2018 | |||
Balance at beginning of period | $ | 2,893 | |
Acquisitions | — | ||
Reduction due to unexpected early payoffs | — | ||
Reclass from non-accretable difference | — | ||
Disposals/transfers | — | ||
Accretion | (426 | ) | |
Balance at end of period | $ | 2,467 |
Nine Months Ended | Twelve Months Ended | |||||||
June 30, 2018 | September 30, 2017 | |||||||
Balance at beginning of period | $ | 1,886 | $ | — | ||||
MSR asset acquired | — | 1,909 | ||||||
MSRs capitalized | 206 | 13 | ||||||
Amortization during the period | (251 | ) | (36 | ) | ||||
Valuation allowance at end of period | — | — | ||||||
Net book value at end of period | $ | 1,841 | $ | 1,886 | ||||
Fair value of MSR asset at end of period | $ | 2,269 | $ | 1,951 | ||||
Residential mortgage loans serviced for others | $ | 281,076 | $ | 282,392 | ||||
Net book value of MSR asset to loans serviced for others | 0.65 | % | 0.67 | % |
6/30/2018 | 9/30/2017 | ||||||
Advances from FHLB: | |||||||
Fixed rates | $ | 29,000 | $ | 90,000 | |||
Overnight borrowings | 29,000 | — | |||||
Total FHLB advances | 58,000 | 90,000 | |||||
Senior notes: | |||||||
Variable rate due in May 2021 | 9,778 | 10,694 | |||||
Variable rate due in August 2022 | 4,625 | 5,000 | |||||
14,403 | 15,694 | ||||||
Subordinated notes: | |||||||
6.75% due August 2027, variable rate commencing August 2022 | 5,000 | 5,000 | |||||
6.75% due August 2027, variable rate commencing August 2022 | 10,000 | 10,000 | |||||
15,000 | 15,000 | ||||||
Less: unamortized debt issuance costs | (344 | ) | (375 | ) | |||
Total other borrowings | 29,059 | 30,319 | |||||
TOTALS | $ | 87,059 | $ | 120,319 |
Fiscal years ending September 30, | |||
2018 | $ | 58,000 | |
2019 | — | ||
2020 | — | ||
2021 | 9,778 | ||
2022 | 4,594 | ||
Thereafter | 14,687 | ||
$ | 87,059 |
Restricted Common Stock Award | ||||||||||||||
June 30, 2018 | September 30, 2017 | |||||||||||||
Number of Shares | Weighted Average Grant Price | Number of Shares | Weighted Average Grant Price | |||||||||||
Restricted Shares | ||||||||||||||
Unvested and outstanding at beginning of fiscal year | 42,378 | $ | 12.07 | 23,159 | $ | 9.59 | ||||||||
Granted | 33,230 | 13.77 | 25,569 | 13.53 | ||||||||||
Vested | (6,579 | ) | 12.73 | (6,350 | ) | 8.88 | ||||||||
Forfeited | (11,847 | ) | 10.45 | — | — | |||||||||
Unvested and outstanding fiscal to date | 57,182 | $ | 13.32 | 42,378 | $ | 12.07 |
Common Stock Option Awards | |||||||||||||
Option Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
2018 | |||||||||||||
Outstanding at September 30, 2017 | 146,606 | $ | 9.45 | ||||||||||
Granted | 8,000 | 13.60 | |||||||||||
Exercised | (6,042 | ) | 8.11 | ||||||||||
Forfeited or expired | (26,894 | ) | — | ||||||||||
Outstanding at June 30, 2018 | 121,670 | $ | 9.82 | 5.78 | |||||||||
Exercisable at June 30, 2018 | 56,770 | $ | 8.04 | 3.38 | $ | 387 | |||||||
Fully vested and expected to vest | 121,670 | $ | 9.82 | 5.78 | $ | 526 | |||||||
2017 | |||||||||||||
Outstanding at September 30, 2016 | 140,706 | $ | 8.67 | ||||||||||
Granted | 23,000 | 13.75 | |||||||||||
Exercised | (14,100 | ) | 8.27 | ||||||||||
Forfeited or expired | (3,000 | ) | 11.00 | ||||||||||
Outstanding at September 30, 2017 | 146,606 | $ | 9.45 | 6.68 | |||||||||
Exercisable at September 30, 2017 | 57,712 | $ | 7.70 | 3.89 | $ | 361 | |||||||
Fully vested and expected to vest | 146,606 | $ | 9.45 | 6.68 | $ | 659 |
2018 | 2017 | |||||||
Intrinsic value of options exercised | $ | 33 | $ | 69 | ||||
Cash received from options exercised | $ | 50 | $ | 114 | ||||
Tax benefit realized from options exercised | $ | — | $ | — |
2018 | 2017 | |||||
Dividend yield | 1.18 | % | 1.16 | % | ||
Risk-free interest rate | 2.4 | % | 2.2 | % | ||
Weighted average expected life (years) | 10 | 10 | ||||
Expected volatility | 2.3 | % | 2.4 | % |
Fair Value | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2018 | |||||||||||||||
Investment securities: | |||||||||||||||
U.S. government agency obligations | $ | 35,986 | $ | — | $ | 35,986 | $ | — | |||||||
Obligations of states and political subdivisions | 34,978 | — | 34,978 | — | |||||||||||
Mortgage-backed securities | 43,463 | — | 43,463 | — | |||||||||||
Agency Securities | 223 | — | 223 | — | |||||||||||
Corporate debt securities | 5,052 | — | 5,052 | — | |||||||||||
Total | $ | 119,702 | $ | — | $ | 119,702 | $ | — | |||||||
September 30, 2017 | |||||||||||||||
Investment securities: | |||||||||||||||
U.S. government agency obligations | $ | 18,041 | $ | — | $ | 18,041 | $ | — | |||||||
Obligations of states and political subdivisions | 35,795 | — | 35,795 | — | |||||||||||
Mortgage-backed securities | 36,474 | — | 36,474 | — | |||||||||||
Agency securities | 230 | — | 230 | — | |||||||||||
Corporate debt securities | 5,343 | — | 5,343 | — | |||||||||||
Total | $ | 95,883 | $ | — | $ | 95,883 | $ | — |
Fair Value | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2018 | |||||||||||||||
Foreclosed and repossessed assets, net | $ | 5,392 | $ | — | $ | — | $ | 5,392 | |||||||
Impaired loans with allocated allowances | 1,865 | — | — | 1,865 | |||||||||||
Mortgage servicing rights | 2,269 | — | — | 2,269 | |||||||||||
Total | $ | 9,526 | $ | — | $ | — | $ | 9,526 | |||||||
September 30, 2017 | |||||||||||||||
Foreclosed and repossessed assets, net | $ | 6,017 | $ | — | $ | — | $ | 6,017 | |||||||
Impaired loans with allocated allowances | 1,490 | — | — | 1,490 | |||||||||||
Mortgage servicing rights | 1,951 | — | — | 1,951 | |||||||||||
Total | $ | 9,458 | $ | — | $ | — | $ | 9,458 | |||||||
Fair Value | Valuation Techniques (1) | Significant Unobservable Inputs (2) | Range | ||||||
June 30, 2018 | |||||||||
Foreclosed and repossessed assets, net | $ | 5,392 | Appraisal value | Estimated costs to sell | 10 - 15% | ||||
Impaired loans with allocated allowances | $ | 1,865 | Appraisal value | Estimated costs to sell | 10 - 15% | ||||
Mortgage servicing rights | $ | 2,269 | Discounted cash flows | Discounted rates | 9.5% - 12.5% | ||||
September 30, 2017 | |||||||||
Foreclosed and repossessed assets, net | $ | 6,017 | Appraisal value | Estimated costs to sell | 10 - 15% | ||||
Impaired loans with allocated allowances | $ | 1,490 | Appraisal value | Estimated costs to sell | 10 - 15% | ||||
Mortgage servicing rights | $ | 1,951 | Discounted cash flows | Discounted rates | 9.5% - 12.5% |
June 30, 2018 | September 30, 2017 | ||||||||||||||||
Valuation Method Used | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | (Level I) | $ | 27,731 | $ | 27,731 | $ | 41,677 | $ | 41,677 | ||||||||
Other interest-bearing deposits | (Level II) | 8,160 | 8,048 | 8,148 | 8,143 | ||||||||||||
Securities available for sale "AFS" | See above | 119,702 | 119,702 | 95,883 | 95,883 | ||||||||||||
Securities held to maturity "HTM" | (Level II) | 4,809 | 4,827 | 5,453 | 5,605 | ||||||||||||
Non-marketable equity securities, at cost | (Level I) | 6,862 | 6,862 | 7,292 | 7,292 | ||||||||||||
Loans receivable, net | (Level III) | 754,629 | 749,079 | 727,053 | 737,119 | ||||||||||||
Loans held for sale | (Level II) | 1,778 | 1,778 | 2,334 | 2,334 | ||||||||||||
Mortgage servicing rights | (Level III) | 1,841 | 2,269 | 1,886 | 1,951 | ||||||||||||
Accrued interest receivable | (Level 1) | 3,306 | 3,306 | 3,291 | 3,291 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | (Level III) | $ | 744,536 | $ | 748,555 | $ | 742,504 | $ | 746,025 | ||||||||
FHLB advances | (Level II) | 58,000 | 57,999 | 90,000 | 89,998 | ||||||||||||
Other borrowings | (Level I) | 29,059 | 29,059 | 30,319 | 30,319 | ||||||||||||
Accrued interest payable | (Level I) | 336 | 336 | 227 | 227 |
2018 | 2017 | ||||||||||||||||||||||
Before-Tax Amount | Tax Expense | Net-of-Tax Amount | Before-Tax Amount | Tax Expense | Net-of-Tax Amount | ||||||||||||||||||
Unrealized gains (losses) on securities: | |||||||||||||||||||||||
Net unrealized (losses) gains arising during the period | $ | (2,397 | ) | $ | 642 | $ | (1,755 | ) | $ | (2,140 | ) | $ | 856 | $ | (1,284 | ) | |||||||
Less: reclassification adjustment for (losses) gains included in net income | (21 | ) | 5 | (16 | ) | 29 | (12 | ) | 17 | ||||||||||||||
Less: reclassification of certain deferred tax effects (1) | (137 | ) | — | (137 | ) | — | — | — | |||||||||||||||
Other comprehensive loss | $ | (2,555 | ) | $ | 647 | $ | (1,908 | ) | $ | (2,111 | ) | $ | 844 | $ | (1,267 | ) |
Unrealized Gains (Losses) on Securities | Defined Benefit Plans | Other Accumulated Comprehensive Income (Loss) | |||||||||
Balance, October 1, 2016 | $ | 614 | $ | — | $ | 614 | |||||
Current year-to-date other comprehensive loss, net of tax | (881 | ) | — | (881 | ) | ||||||
Ending balance, September 30, 2017 | $ | (267 | ) | $ | — | $ | (267 | ) | |||
Current year-to-date other comprehensive loss, net of tax | (1,908 | ) | — | (1,908 | ) | ||||||
Ending balance, June 30, 2018 | $ | (2,175 | ) | $ | — | $ | (2,175 | ) |
Details about Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income | (1) | Affected Line Item on the Statement of Operations | |||
Unrealized gains and losses | ||||||
Sale of securities | $ | — | Net gain on sale of available for sale securities | |||
Realized losses on securities available | Total fair value adjustments and other-than- | |||||
for sale for OTTI write-down | (21 | ) | temporary impairment | |||
(21 | ) | |||||
Tax Effect | 5 | Provision for income taxes | ||||
Total reclassifications for the period | $ | (16 | ) | Net income attributable to common shareholders |
Details about Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income | (1) | Affected Line Item on the Statement of Operations | |||
Unrealized gains and losses | ||||||
Sale of securities | $ | 29 | Net gain on sale of available for sale securities | |||
Tax Effect | (12 | ) | Provision for income taxes | |||
Total reclassifications for the period | $ | 17 | Net income attributable to common shareholders |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | conditions in the financial markets and economic conditions generally; |
• | the possibility of a deterioration in the residential real estate markets; |
• | interest rate risk; |
• | lending risk; |
• | the sufficiency of loan allowances; |
• | changes in the fair value or ratings downgrades of our securities; |
• | competitive pressures among depository and other financial institutions; |
• | our ability to realize the benefits of net deferred tax assets; |
• | our ability to maintain or increase our market share; |
• | the risk that the acquisition of United Bank may be more difficult, costly or time consuming or that the expected benefits are not realized; |
• | failure to obtain applicable regulatory approvals and meet other closing conditions to the acquisition of United Bank on the expected terms and schedule; |
• | the risk that if the acquisition of United Bank were not completed it could negatively impact the stock price and the future business and financial results of the Company; |
• | difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; |
• | acts of terrorism and political or military actions by the United States or other governments; |
• | legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; |
• | increases in FDIC insurance premiums or special assessments by the FDIC; |
• | disintermediation risk; |
• | our inability to obtain needed liquidity; |
• | our ability to raise capital needed to fund growth or meet regulatory requirements; |
• | the possibility that our internal controls and procedures could fail or be circumvented; |
• | our ability to attract and retain key personnel; |
• | our ability to keep pace with technological change; |
• | cybersecurity risks; |
• | risks posed by acquisitions and other expansion opportunities; |
• | changes in federal or state tax laws; |
• | litigation risk; |
• | changes in accounting principles, policies or guidelines and their impact on financial performance; |
• | restrictions on our ability to pay dividends; and |
• | the potential volatility of our stock price. |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income as reported | $ | 503 | $ | 1,083 | $ | 3,184 | $ | 2,957 | ||||||||
EPS - basic, as reported | $ | 0.09 | $ | 0.21 | $ | 0.54 | $ | 0.56 | ||||||||
EPS - diluted, as reported | $ | 0.08 | $ | 0.20 | $ | 0.52 | $ | 0.56 | ||||||||
Cash dividends paid | $ | — | $ | — | $ | 0.20 | $ | 0.16 | ||||||||
Return on average assets (annualized) | 0.21 | % | 0.65 | % | 0.45 | % | 0.58 | % | ||||||||
Return on average equity (annualized) | 2.51 | % | 6.66 | % | 5.60 | % | 6.06 | % | ||||||||
Efficiency ratio, as reported (1) | 85.15 | % | 73.71 | % | 79.73 | % | 77.24 | % |
(1) | The efficiency ratio is calculated as non-interest expense divided by the sum of net interest income plus non-interest income. A lower ratio indicates greater efficiency. |
• | Net income totaled $503 in Q3 fiscal 2018, compared to $1,083 a year ago. In addition to the impact of higher expenses due to the Wells Financial Corporation ("WFC") acquisition, expenses increased during the current quarter due to higher provision for loan losses related to strong organic commercial loan growth, valuation reductions to OREO branch offices that are scheduled for sale, acquisition related expenses, expenses related to resolved litigation, along with expenses to support asset growth. |
• | Net interest margin (NIM) was at 3.40% for the current quarter, compared to 3.41% a year earlier. The increase in funding costs were offset by higher asset yields, primarily from loans, and additionally, the higher levels of equity due to the mandatorily convertible preferred stock offer. |
• | Loan loss provision was $650 in Q3 fiscal 2018 compared to $0 the previous year as the Community Banking loan portfolio, consisting of commercial banking business and consumer lending, showed strong growth. The allowance for loan and lease losses (“ALLL”) was 0.85% of total loans at June 30, 2018, compared to 0.81% at September 30, 2017. Loans acquired, which are reported at fair market value at acquisition, are included in total loans. Nonperforming assets (“NPA”) declined as sales of OREO properties exceeded modest new non-performing loans. NPA’s were $12,729, or 1.31% of total assets at June 30, 2018, compared to $14,058, or 1.49% of total assets at September 30, 2017. The decrease was primarily the result of sales of foreclosed and repossessed assets during the quarter. Foreclosed and repossessed assets declined to $5,392 at June 30, 2018 from $6,017 million at September 30, 2017. |
• | Total non-interest expense for Q3 fiscal 2018 of $7,874 was higher compared to Q2 fiscal 2018 at $7,103. The increase was largely related to increased professional fees related to the proposed acquisition totaling $228,000 and litigation costs totaling $198,000, as well as OREO branch office write-downs totaling $449,000. The Bank has accepted offers to sell all of the closed branch facilities carried as OREO. |
• | Net loans increased to $754,629 at June 30, 2018, compared to $727,053 at September 30, 2017, reflecting growth in commercial, multi-family and agricultural loans. As a result of this loan growth, assets increased to $975,070 at June 30, 2018 compared to $940,664 at September 30, 2017. |
• | The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), enacted on December 22, 2017, reduced the corporate Federal income tax rates for the Company from 34% to 24.5% for 2018, and 21% for 2019. GAAP requires the impact of the provisions of the Tax Act be accounted for in the period of enactment. At December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, we made a reasonable estimates and continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. The Company revalued its net deferred tax assets to account for the future impact of lower corporate taxes. For the items for which we were able to determine a reasonable estimate, we recorded an increased provisional amount of income tax expense of $275 in December 2017, related to the revaluation of the deferred tax assets to both the revaluation of timing differences and the unrealized loss on securities. In the second and third quarters of fiscal 2018, we reviewed our analysis from our first quarter and determined there were no material changes warranting any further adjustment. |
Three months ended June 30, 2018 | Three months ended June 30, 2017 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | ||||||||||||||||
Average interest earning assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,203 | $ | 61 | 1.27 | % | $ | 17,246 | $ | 27 | 0.66 | % | |||||||||
Loans | 729,390 | 8,865 | 4.87 | % | 526,661 | 6,030 | 4.57 | % | |||||||||||||
Interest-bearing deposits | 8,418 | 44 | 2.10 | % | 808 | 4 | 2.18 | % | |||||||||||||
Investment securities (1) | 124,715 | 701 | 2.44 | % | 84,845 | 512 | 2.11 | % | |||||||||||||
Non-marketable equity securities, at cost | 8,158 | 99 | 4.87 | % | 4,488 | 48 | 4.58 | % | |||||||||||||
Total interest earning assets (1) | $ | 889,884 | $ | 9,770 | 4.43 | % | $ | 634,048 | $ | 6,621 | 4.13 | % | |||||||||
Average interest-bearing liabilities: | |||||||||||||||||||||
Savings accounts | $ | 94,741 | $ | 53 | 0.22 | % | $ | 47,184 | $ | 13 | 0.14 | % | |||||||||
Demand deposits | 150,666 | 129 | 0.34 | % | 50,617 | 59 | 0.47 | % | |||||||||||||
Money market | 115,625 | 196 | 0.68 | % | 122,709 | 126 | 0.41 | % | |||||||||||||
CD’s | 271,311 | 959 | 1.42 | % | 226,189 | 767 | 1.33 | % | |||||||||||||
IRA’s | 32,890 | 94 | 1.15 | % | 26,852 | 70 | 1.10 | % | |||||||||||||
Total deposits | 665,233 | 1,431 | 0.86 | % | 473,551 | 1,035 | 0.88 | % | |||||||||||||
FHLB Advances and other borrowings | 114,498 | 859 | 3.01 | % | 74,548 | 271 | 1.34 | % | |||||||||||||
Total interest-bearing liabilities | $ | 779,731 | $ | 2,290 | 1.18 | % | $ | 548,099 | $ | 1,306 | 0.94 | % | |||||||||
Net interest income | $ | 7,480 | $ | 5,315 | |||||||||||||||||
Interest rate spread | 3.25 | % | 3.27 | % | |||||||||||||||||
Net interest margin (1) | 3.40 | % | 3.41 | % | |||||||||||||||||
Average interest earning assets to average interest-bearing liabilities | 1.14 | 1.16 |
Nine months ended June 30, 2018 | Nine months ended June 30, 2017 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | ||||||||||||||||
Average interest earning assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 24,840 | $ | 191 | 1.03 | % | $ | 15,007 | $ | 68 | 0.61 | % | |||||||||
Loans | 729,253 | 26,125 | 4.79 | % | 542,600 | 18,632 | 4.59 | % | |||||||||||||
Interest-bearing deposits | 7,837 | 107 | 1.83 | % | 770 | 11 | 1.91 | % | |||||||||||||
Investment securities (1) | 113,662 | 1,834 | 2.34 | % | 85,910 | 1,249 | 2.28 | % | |||||||||||||
Non-marketable equity securities, at cost | 7,787 | 277 | 4.76 | % | 4,847 | 148 | 4.08 | % | |||||||||||||
Total interest earning assets (1) | $ | 883,379 | $ | 28,534 | 4.34 | % | $ | 649,134 | $ | 20,108 | 4.19 | % | |||||||||
Average interest-bearing liabilities: | |||||||||||||||||||||
Savings accounts | $ | 95,293 | $ | 103 | 0.14 | % | $ | 45,342 | $ | 46 | 0.14 | % | |||||||||
Demand deposits | 150,262 | 333 | 0.30 | % | 50,439 | 194 | 0.51 | % | |||||||||||||
Money market | 118,779 | 524 | 0.59 | % | 126,061 | 387 | 0.41 | % | |||||||||||||
CD’s | 267,264 | 2,662 | 1.33 | % | 235,341 | 2,352 | 1.34 | % | |||||||||||||
IRA’s | 33,883 | 262 | 1.03 | % | 27,861 | 225 | 1.08 | % | |||||||||||||
Total deposits | 665,481 | 3,884 | 0.78 | % | 485,044 | 3,204 | 0.88 | % | |||||||||||||
FHLB Advances and other borrowings | 115,623 | 2,287 | 2.64 | % | 77,914 | 808 | 1.39 | % | |||||||||||||
Total interest-bearing liabilities | $ | 781,104 | $ | 6,171 | 1.06 | % | $ | 562,958 | $ | 4,012 | 0.95 | % | |||||||||
Net interest income | $ | 22,363 | $ | 16,096 | |||||||||||||||||
Interest rate spread | 3.29 | % | 3.24 | % | |||||||||||||||||
Net interest margin (1) | 3.41 | % | 3.36 | % | |||||||||||||||||
Average interest earning assets to average interest-bearing liabilities | 1.13 | 1.15 |
Increase (decrease) due to | |||||||||||
Volume | Rate | Net | |||||||||
Interest income: | |||||||||||
Cash and cash equivalents | $ | 3 | $ | 31 | $ | 34 | |||||
Loans | 2,438 | 397 | 2,835 | ||||||||
Interest-bearing deposits | 40 | — | 40 | ||||||||
Investment securities | 251 | (62 | ) | 189 | |||||||
Non-marketable equity securities, at cost | 43 | 8 | 51 | ||||||||
Total interest earning assets | 2,775 | 374 | 3,149 | ||||||||
Interest expense: | |||||||||||
Savings accounts | 18 | 22 | 40 | ||||||||
Demand deposits | 95 | (25 | ) | 70 | |||||||
Money market accounts | (8 | ) | 78 | 70 | |||||||
CD’s | 158 | 34 | 192 | ||||||||
IRA’s | 17 | 7 | 24 | ||||||||
Total deposits | 280 | 116 | 396 | ||||||||
FHLB Advances and other borrowings | 183 | 405 | 588 | ||||||||
Total interest bearing liabilities | 463 | 521 | 984 | ||||||||
Net interest income | $ | 2,312 | $ | (147 | ) | $ | 2,165 |
Increase (decrease) due to | |||||||||||
Volume | Rate | Net | |||||||||
Interest income: | |||||||||||
Cash and cash equivalents | $ | 56 | $ | 67 | $ | 123 | |||||
Loans | 6,646 | 847 | 7,493 | ||||||||
Interest-bearing deposits | 97 | (1 | ) | 96 | |||||||
Investment securities | 485 | 100 | 585 | ||||||||
Non-marketable equity securities, at cost | 100 | 29 | 129 | ||||||||
Total interest earning assets | 7,384 | 1,042 | $ | 8,426 | |||||||
Interest expense: | |||||||||||
Savings accounts | 54 | 3 | 57 | ||||||||
Demand deposits | 283 | (144 | ) | 139 | |||||||
Money market accounts | (24 | ) | 161 | 137 | |||||||
CD’s | 318 | (8 | ) | 310 | |||||||
IRA’s | 47 | (10 | ) | 37 | |||||||
Total deposits | 678 | 2 | 680 | ||||||||
FHLB Advances and other borrowings | 485 | 994 | 1,479 | ||||||||
Total interest bearing liabilities | 1,163 | 996 | 2,159 | ||||||||
Net interest income | $ | 6,221 | $ | 46 | $ | 6,267 |
Three months ended June 30, | Nine months ended June 30, | ||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Non-interest Income: | |||||||||||||||||||||
Service charges on deposit accounts | $ | 413 | $ | 325 | 27.08 | % | $ | 1,303 | $ | 1,065 | 22.35 | % | |||||||||
Interchange income | 338 | 203 | 66.50 | % | 946 | 575 | 64.52 | % | |||||||||||||
Loan servicing income | 337 | 62 | 443.55 | % | 1,011 | 205 | 393.17 | % | |||||||||||||
Gain on sale of mortgage loans | 226 | 206 | 9.71 | % | 709 | 490 | 44.69 | % | |||||||||||||
Loan fees and service charges | 116 | 96 | 20.83 | % | 357 | 418 | (14.59 | )% | |||||||||||||
Insurance commission income | 187 | — | N/M | 540 | — | N/M | |||||||||||||||
Settlement proceeds | — | — | N/M | — | 283 | (100.00 | )% | ||||||||||||||
Gains (losses) on available for sale securities | 4 | — | N/M | (17 | ) | 29 | (158.62 | )% | |||||||||||||
Other | 146 | 99 | 47.47 | % | 532 | 295 | 80.34 | % | |||||||||||||
Total non-interest income | $ | 1,767 | $ | 991 | 78.30 | % | $ | 5,381 | $ | 3,360 | 60.15 | % |
Three months ended June 30, | Nine months ended June 30, | ||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Non-interest Expense: | |||||||||||||||||||||
Compensation and benefits | $ | 3,840 | $ | 2,395 | 60.33 | % | $ | 11,201 | $ | 7,629 | 46.82 | % | |||||||||
Occupancy - net | 733 | 565 | 29.73 | % | 2,199 | 2,196 | 0.14 | % | |||||||||||||
Office | 417 | 304 | 37.17 | % | 1,281 | 897 | 42.81 | % | |||||||||||||
Data processing | 720 | 476 | 51.26 | % | 2,157 | 1,402 | 53.85 | % | |||||||||||||
Amortization of intangible assets | 161 | 38 | 323.68 | % | 484 | 119 | 306.72 | % | |||||||||||||
Amortization of mortgage servicing rights | 84 | — | N/M | 250 | — | N/M | |||||||||||||||
Advertising, marketing and public relations | 185 | 75 | 146.67 | % | 480 | 243 | 97.53 | % | |||||||||||||
FDIC premium assessment | 94 | 79 | 18.99 | % | 351 | 231 | 51.95 | % | |||||||||||||
Professional services | 735 | 382 | 92.41 | % | 1,746 | 1,218 | 43.35 | % | |||||||||||||
Loss (gain) on repossessed assets, net | 450 | (11 | ) | 41.91 | % | 464 | (16 | ) | 30.00 | % | |||||||||||
Other | 455 | 316 | 43.99 | % | 1,507 | 1,050 | 43.52 | % | |||||||||||||
Total non-interest expense | $ | 7,874 | $ | 4,619 | 70.47 | % | $ | 22,120 | $ | 14,969 | 47.77 | % | |||||||||
Non-interest expense (annualized) / Average assets | 3.34 | % | 2.84 | % | 17.61 | % | 3.15 | % | 2.99 | % | 5.35 | % |
June 30, 2018 | September 30, 2017 | |||||||
Amount | Amount | |||||||
Real estate loans: | ||||||||
Residential real estate | ||||||||
One to four family | $ | 202,356 | 229,563 | |||||
Purchased HELOC loans | 15,237 | 18,071 | ||||||
Commercial/agricultural real estate | ||||||||
Commercial real estate | 208,526 | 159,962 | ||||||
Agricultural real estate | 70,881 | 68,002 | ||||||
Multi-family real estate | 45,707 | 26,228 | ||||||
Construction and land development | 15,258 | 19,708 | ||||||
Total real estate loans | 557,965 | 521,534 | ||||||
Non-real estate loans: | ||||||||
Consumer non-real estate | ||||||||
Originated indirect paper | 66,791 | 85,732 | ||||||
Purchased indirect paper | 19,801 | 29,555 | ||||||
Other Consumer | 19,063 | 20,668 | ||||||
Commercial/agricultural loans | ||||||||
Commercial non-real estate | 74,763 | 55,251 | ||||||
Agricultural non-real estate | 26,366 | 23,873 | ||||||
Total non-real estate loans | 206,784 | 215,079 | ||||||
Gross loans | 764,749 | 736,613 | ||||||
Unearned net deferred fees and costs and loans in process | 693 | 1,471 | ||||||
Unamortized discount on acquired loans | (4,355 | ) | (5,089 | ) | ||||
Total loans (net of unearned income and deferred expense) | 761,087 | 732,995 | ||||||
Allowance for loan losses | (6,458 | ) | (5,942 | ) | ||||
Total loans receivable, net | $ | 754,629 | $ | 727,053 |
June 30, 2018 | September 30, 2017 | Change FTD | ||||||||||
Community Banking Loan Portfolios: | ||||||||||||
Commercial/Agricultural real estate: | ||||||||||||
Commercial real estate | $ | 208,526 | $ | 159,962 | $ | 48,564 | ||||||
Agricultural real estate | 70,881 | 68,002 | 2,879 | |||||||||
Multi-family real estate | 45,707 | 26,228 | 19,479 | |||||||||
Construction and land development | 15,258 | 19,708 | (4,450 | ) | ||||||||
Commercial/Agricultural non-real estate: | ||||||||||||
Commercial non-real estate | 74,763 | 55,251 | 19,512 | |||||||||
Agricultural non-real estate | 26,366 | 23,873 | 2,493 | |||||||||
Residential real estate: | ||||||||||||
Purchased HELOC loans | 15,237 | 18,071 | (2,834 | ) | ||||||||
Consumer non-real estate: | ||||||||||||
Other consumer | 19,063 | 20,668 | (1,605 | ) | ||||||||
Total Community Banking Loan Portfolios | 475,801 | 391,763 | 84,038 | |||||||||
Legacy Loan Portfolios: | ||||||||||||
Residential real estate: | ||||||||||||
One to four family | 202,356 | 229,563 | (27,207 | ) | ||||||||
Consumer non-real estate: | ||||||||||||
Originated indirect paper | 66,791 | 85,732 | (18,941 | ) | ||||||||
Purchased indirect paper | 19,801 | 29,555 | (9,754 | ) | ||||||||
Total Legacy Loan Portfolios | 288,948 | 344,850 | (55,902 | ) | ||||||||
Gross loans | $ | 764,749 | $ | 736,613 | $ | 28,136 |
June 30, 2018 and Nine Months Then Ended | September 30, 2017 and Twelve Months Then Ended | ||||||
Nonperforming assets: | |||||||
Nonaccrual loans | $ | 6,627 | $ | 7,452 | |||
Accruing loans past due 90 days or more | 710 | 589 | |||||
Total nonperforming loans (“NPLs”) | 7,337 | 8,041 | |||||
Other real estate owned | 5,328 | 5,962 | |||||
Other collateral owned | 64 | 55 | |||||
Total nonperforming assets (“NPAs”) | $ | 12,729 | $ | 14,058 | |||
Troubled Debt Restructurings (“TDRs”) | $ | 8,210 | $ | 5,851 | |||
Accruing TDR's | $ | 5,860 | $ | 5,230 | |||
Nonaccrual TDRs | $ | 2,350 | $ | 621 | |||
Average outstanding loan balance | $ | 732,606 | $ | 653,717 | |||
Loans, end of period | $ | 761,087 | $ | 732,995 | |||
Total assets, end of period | $ | 975,070 | $ | 940,664 | |||
ALL, at beginning of period | $ | 5,942 | $ | 6,068 | |||
Loans charged off: | |||||||
Residential real estate | (120 | ) | (233 | ) | |||
Commercial/Agricultural real estate | (74 | ) | — | ||||
Consumer non-real estate | (295 | ) | (389 | ) | |||
Commercial/Agricultural non-real estate | (5 | ) | (9 | ) | |||
Total loans charged off | (494 | ) | (631 | ) | |||
Recoveries of loans previously charged off: | |||||||
Residential real estate | 51 | 14 | |||||
Commercial/Agricultural real estate | — | — | |||||
Consumer non-real estate | 96 | 171 | |||||
Commercial/Agricultural non-real estate | 13 | 1 | |||||
Total recoveries of loans previously charged off: | 160 | 186 | |||||
Net loans charged off (“NCOs”) | (334 | ) | (445 | ) | |||
Additions to ALL via provision for loan losses charged to operations | 850 | 319 | |||||
ALL, at end of period | $ | 6,458 | $ | 5,942 | |||
Ratios: | |||||||
ALL to NCOs (annualized) | 1,450.15 | % | 1,335.28 | % | |||
NCOs (annualized) to average loans | 0.06 | % | 0.07 | % | |||
ALL to total loans | 0.85 | % | 0.81 | % | |||
NPLs to total loans | 0.96 | % | 1.10 | % | |||
NPAs to total assets | 1.31 | % | 1.49 | % |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 89 Days | Total Past Due | Nonaccrual Loans | Recorded Investment > 89 Days and Accruing | ||||||||||||||||||
June 30, 2018 | |||||||||||||||||||||||
Originated loans | $ | 3,533 | $ | 1,108 | $ | 1,646 | $ | 6,287 | $ | 1,697 | $ | 395 | |||||||||||
Acquired loans | 4,520 | 1,320 | 3,271 | 9,111 | 4,930 | 315 | |||||||||||||||||
Total | $ | 8,053 | $ | 2,428 | $ | 4,917 | $ | 15,398 | $ | 6,627 | $ | 710 | |||||||||||
September 30, 2017 | |||||||||||||||||||||||
Originated loans | $ | 3,376 | $ | 725 | $ | 1,744 | $ | 5,845 | $ | 1,785 | $ | 458 | |||||||||||
Acquired loans | 2,053 | 257 | 2,848 | 5,158 | 5,667 | 131 | |||||||||||||||||
Total | $ | 5,429 | $ | 982 | $ | 4,592 | $ | 11,003 | $ | 7,452 | $ | 589 |
Securities available for sale | Amortized Cost | Fair Value | |||||
June 30, 2018 | |||||||
U.S. government agency obligations | $ | 37,067 | $ | 35,986 | |||
Obligations of states and political subdivisions | 35,518 | 34,978 | |||||
Mortgage backed securities | 44,653 | 43,463 | |||||
Agency securities | 104 | 223 | |||||
Corporate debt securities | 5,360 | 5,052 | |||||
Totals | $ | 122,702 | $ | 119,702 | |||
September 30, 2017 | |||||||
U.S. government agency obligations | $ | 18,454 | $ | 18,041 | |||
Obligations of states and political subdivisions | 35,656 | 35,795 | |||||
Mortgage backed securities | 36,661 | 36,474 | |||||
Agency securities | 147 | 230 | |||||
Corporate debt securities | 5,410 | 5,343 | |||||
Totals | $ | 96,328 | $ | 95,883 |
Securities held to maturity | Amortized Cost | Fair Value | |||||
June 30, 2018 | |||||||
Obligations of states and political subdivisions | $ | 1,308 | $ | 1,307 | |||
Mortgage-backed securities | 3,501 | 3,520 | |||||
Totals | $ | 4,809 | $ | 4,827 | |||
September 30, 2017 | |||||||
Obligations of states and political subdivisions | $ | 1,311 | $ | 1,328 | |||
Mortgage-backed securities | 4,142 | 4,277 | |||||
Totals | $ | 5,453 | $ | 5,605 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Available for sale securities | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Agency | $ | 81,720 | $ | 79,449 | $ | 55,115 | $ | 54,515 | |||||||
AAA | 1,302 | 1,291 | 725 | 730 | |||||||||||
AA | 26,524 | 26,130 | 26,405 | 26,474 | |||||||||||
A | 11,548 | 11,256 | 7,776 | 7,876 | |||||||||||
BBB | — | — | 3,618 | 3,579 | |||||||||||
Non-rated | 1,608 | 1,576 | 2,689 | 2,709 | |||||||||||
Total available for sale securities | $ | 122,702 | $ | 119,702 | $ | 96,328 | $ | 95,883 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Securities held to maturity | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
U.S. government agency | $ | 3,501 | $ | 3,520 | $ | 4,142 | $ | 4,277 | |||||||
AAA | — | — | — | — | |||||||||||
AA | — | — | — | — | |||||||||||
A | 958 | 957 | 961 | 969 | |||||||||||
BBB | — | — | — | — | |||||||||||
Below investment grade | — | — | — | — | |||||||||||
Non-rated | 350 | 350 | 350 | 359 | |||||||||||
Total | $ | 4,809 | $ | 4,827 | $ | 5,453 | $ | 5,605 |
June 30, 2018 | September 30, 2017 | |||||||
Non-interest bearing demand deposits | $ | 82,135 | $ | 75,318 | ||||
Interest bearing demand deposits | 151,117 | 147,912 | ||||||
Savings accounts | 98,427 | 102,756 | ||||||
Money market accounts | 115,369 | 125,749 | ||||||
Certificate accounts | 297,488 | 290,769 | ||||||
Total deposits | $ | 744,536 | $ | 742,504 |
• | Section 201 requires the Federal banking agencies to promulgate a rule establishing a new “Community Bank Leverage Ratio” of 8%-10% for depository institutions and depository institution holding companies, including banks and bank holding companies, with less than $10 billion in total consolidated assets. If such a depository institution or holding company maintains tangible equity in excess of this leverage ratio, it would be deemed to be in compliance with (1) the leverage and risk-based capital requirements promulgated by the Federal banking agencies; (2) in the case of a depository institution, the capital ratio requirements to be considered “well capitalized” under the Federal banking agencies’ “prompt corrective action” regime; and (3) “any other capital or leverage requirements” to which the depository institution or holding company is subject, in each case unless the appropriate Federal banking agency determines otherwise based on the particular institution’s risk profile. In carrying out these requirements, the Federal banking agencies are required to consult with State banking regulators and notify the applicable State banking regulator of any qualifying community bank that exceeds or no longer exceeds the Community Bank Leverage Ratio. |
• | Section 214 statutorily prescribes that the Federal banking agencies may only require depository institutions to apply a heightened risk-weight to exposures that are “high volatility commercial real estate” ("HVCRE") if the exposures meet the definition of a HVCRE Acquisition, Development or Construction ("ADC") loan as set forth in that section. The new definition applies to a narrower scope of exposures. The new definition of HVCRE ADC loan excludes loans made prior to January 1, 2015, amends the loan-to-value/capital contribution exemption, specifies the loan must primarily finance the property, has the purpose of providing financing to acquire, develop or improve such real property in income-producing property and is dependent upon future income or sales proceeds or refinancing of such property to repay the loan. Once the property sufficiently produces cash-flows to support the debt service and expenses in accordance with the bank’s underwriting criteria for permanent financing, the loan meets the exemption as a HVCRE ADC loan. |
• | Section 217 requires a reduction of the Federal Reserve Bank’s combined surplus fund from $7.5 billion to $6.825 billion. This surplus fund was decreased earlier this year from $10 billion to $7.5 billion as part of the Bipartisan Budget Act of 2018. This will impact the calculation of the Company’s Deposit Insurance. |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of June 30, 2018 (Unaudited) | ||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 93,564,000 | 12.8 | % | $ | 58,527,000 | >= | 8.0 | % | $ | 73,159,000 | >= | 10.0 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 87,106,000 | 11.9 | % | 43,895,000 | >= | 6.0 | % | 58,527,000 | >= | 8.0 | % | |||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 87,106,000 | 11.9 | % | 32,921,000 | >= | 4.5 | % | 47,553,000 | >= | 6.5 | % | |||||||||||||
Tier 1 leverage ratio (to adjusted total assets) | 87,106,000 | 9.3 | % | 37,272,000 | >= | 4.0 | % | 46,590,000 | >= | 5.0 | % | |||||||||||||
As of September 30, 2017 (Audited) | ||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 88,511,000 | 13.2 | % | $ | 53,504,000 | >= | 8.0 | % | $ | 66,880,000 | >= | 10.0 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 82,569,000 | 12.4 | % | 40,128,000 | >= | 6.0 | % | 53,504,000 | >= | 8.0 | % | |||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 82,569,000 | 12.4 | % | 30,096,000 | >= | 4.5 | % | 43,472,000 | >= | 6.5 | % | |||||||||||||
Tier 1 leverage ratio (to adjusted total assets) | 82,569,000 | 9.2 | % | 35,776,000 | >= | 4.0 | % | 44,720,000 | >= | 5.0 | % |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of June 30, 2018 (Unaudited) | ||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 143,434,000 | 19.6 | % | $ | 58,527,000 | >= | 8.0 | % | $ | 73,159,000 | >= | 10.0 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 121,976,000 | 16.7 | % | 43,895,000 | >= | 6.0 | % | 58,527,000 | >= | 8.0 | % | |||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 60,687,000 | 8.3 | % | 32,921,000 | >= | 4.5 | % | 47,553,000 | >= | 6.5 | % | |||||||||||||
Tier 1 leverage ratio (to adjusted total assets) | 121,976,000 | 13.1 | % | 37,272,000 | >= | 4.0 | % | 46,590,000 | >= | 5.0 | % | |||||||||||||
As of September 30, 2017 (Audited) | ||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 79,889,000 | 12.0 | % | $ | 53,504,000 | >= | 8.0 | % | $ | 66,880,000 | >= | 10.0 | % | ||||||||||
Tier 1 capital (to risk weighted assets) | 58,947,000 | 8.8 | % | 40,128,000 | >= | 6.0 | % | 53,504,000 | >= | 8.0 | % | |||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 58,947,000 | 8.8 | % | 30,096,000 | >= | 4.5 | % | 43,472,000 | >= | 6.5 | % | |||||||||||||
Tier 1 leverage ratio (to adjusted total assets) | 58,947,000 | 6.6 | % | 35,776,000 | >= | 4.0 | % | 44,720,000 | >= | 5.0 | % |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
• | originating shorter-term secured consumer, commercial and agriculture loan maturities; |
• | originating variable rate commercial and agriculture loans; |
• | managing our funding needs by utilizing core deposits, institutional certificates of deposits and borrowings as appropriate to extend terms and lock in fixed interest rates; |
• | reducing non-interest expense and managing our efficiency ratio by implementing technologies to enhance customer service and increase employee productivity; |
• | realigning supervision and control of our branch network by modifying their configuration, staffing, locations and reporting structure to focus resources on our most productive markets; |
• | managing our exposure to changes in interest rates, including, but not limited to the sale of longer term fixed rate consumer loans; |
• | with the acquisition of WFC, entering into selling loans on the secondary market with retained servicing; and |
• | originating balloon mortgage loans with a term of seven years or less to minimize the impact of sudden rate changes. |
Percent Change in Economic Value of Equity (EVE) | ||||||
Change in Interest Rates in Basis Points (“bp”) Rate Shock in Rates (1) | At June 30, 2018 | At September 30, 2017 | ||||
+300 bp | (19.0 | )% | (18.0 | )% | ||
+200 bp | (10.5 | )% | (9.7 | )% | ||
+100 bp | (3.5 | )% | (2.8 | )% | ||
0 bp | — | % | — | % | ||
-100 bp | (3.9 | )% | (5.3 | )% |
(1) | Assumes an immediate and parallel shift in the yield curve at all maturities. |
Percent Change in Net Interest Income Over One Year Horizon | ||||||
Change in Interest Rates in Basis Points (“bp”) Rate Shock in Rates (1) | At June 30, 2018 | At September 30, 2017 | ||||
+300 bp | (9.6 | )% | (9.6 | )% | ||
+200 bp | (5.6 | )% | (5.7 | )% | ||
+100 bp | (1.7 | )% | (2.0 | )% | ||
0 bp | — | % | — | % | ||
-100 bp | 0.2 | % | (1.0 | )% |
(1) | Assumes an immediate and parallel shift in the yield curve at all maturities. |
ITEM 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
• | risks of unknown or contingent liabilities; |
• | unanticipated costs and delays; |
• | risks that acquired new businesses do not perform consistent with our growth and profitability |
• | expectations; |
• | risks of entering new markets or product areas where we have limited experience; |
• | risks that growth will strain our infrastructure, staff, internal controls and management, which may |
• | require additional personnel, time and expenditures; |
• | exposure to potential asset quality issues with acquired institutions; |
• | difficulties, expenses and delays of integrating the operations and personnel of acquired institutions, and |
• | start-up delays and costs of other expansion activities; |
• | potential disruptions to our business; |
• | possible loss of key employees and customers of acquired institutions; |
• | potential short-term decreases in profitability; and |
• | diversion of our management’s time and attention from our existing operations and business. |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Issuer Purchases of Equity Securities. |
Period | Total number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Pans or Programs | ||||
April 1, 2018 - April 30, 2018 | — | — | — | — | ||||
May 1, 2018 - May 31, 2018 | 855 | $13.93 | — | — | ||||
June 1, 2018 - June 30, 2018 | 954 | $13.84 | — | — | ||||
Total | 1,809 | $13.88 | — | — |
Item 3. | DEFAULTS UPON SENIOR SECURITIES |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. | OTHER INFORMATION |
Item 6. | EXHIBITS |
101 | The following materials from Citizens Community Bancorp, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2018 formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statement of Changes in Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Condensed Notes to Consolidated Financial Statements. |
* | This certification is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. |
CITIZENS COMMUNITY BANCORP, INC. | ||||
Date: August 10, 2018 | By: | /s/ Stephen M. Bianchi | ||
Stephen M. Bianchi | ||||
Chief Executive Officer | ||||
Date: August 10, 2018 | By: | /s/ James S. Broucek | ||
James S. Broucek | ||||
Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Citizens Community Bancorp, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 10, 2018 | By: | /s/ Stephen M. Bianchi | |
Stephen M. Bianchi | |||
Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Citizens Community Bancorp, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 10, 2018 | By: | /s/ James S. Broucek | |
James S. Broucek | |||
Chief Financial Officer |
Date: August 10, 2018 | By: | /s/ Stephen M. Bianchi | |
Stephen M. Bianchi | |||
Chief Executive Officer |
Date: August 10, 2018 | By: | /s/ James S. Broucek | |
James S. Broucek | |||
Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 10, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Citizens Community Bancorp Inc. | |
Entity Central Index Key | 0001367859 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,914,379 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Sep. 30, 2017 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, liquidation preference (in dollars per share) | $ 130 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | |
Preferred stock, shares issued (in shares) | 500,000 | |
Preferred stock, shares outstanding (in shares) | 500,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 5,914,379 | 5,888,816 |
Common stock, outstanding (in shares) | 5,914,379 | 5,888,816 |
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to common stockholders | $ 503 | $ 1,083 | $ 3,184 | $ 2,957 |
Securities available for sale | ||||
Net unrealized losses arising during period | (164) | 514 | (1,755) | (770) |
Reclassification adjustment for (losses) gains included in net income | 0 | 0 | (16) | 17 |
Other comprehensive loss | (164) | 514 | (1,771) | (753) |
Comprehensive income | $ 339 | $ 1,597 | $ 1,413 | $ 2,204 |
Consolidated Statement of Changes in Stockholders' Equity (unaudited) (Parenthetical) |
9 Months Ended |
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Jun. 30, 2018
$ / shares
| |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends declared (in usd per share) | $ 0.20 |
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Cash flows from operating activities: | ||
Net income attributable to common stockholders | $ 3,184 | $ 2,957 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of premium/discount on securities | 736 | 575 |
Depreciation | 749 | 674 |
Provision for loan losses | 850 | 0 |
Net realized loss (gain) on sale of securities | 17 | (29) |
Amortization of intangible assets | 484 | 119 |
Amortization of restricted stock | 177 | 48 |
Net stock based compensation expense | 6 | 23 |
(Gain) loss on sale of office properties | (4) | 2 |
Provision for deferred income taxes | 137 | 456 |
Net loss (gain) from disposals of foreclosed properties | 489 | (16) |
Provision for valuation allowance on foreclosed properties | 0 | 0 |
Gain on sale of loans held for sale, net | (709) | (490) |
Proceeds from sale of loans held for sale | 37,989 | 19,530 |
Origination of loans held for sale | (29,689) | (19,857) |
Decrease (increase) in accrued interest receivable and other assets | 1,952 | 319 |
Decrease in other liabilities | 3,906 | (1,755) |
Total adjustments | 17,090 | (401) |
Net cash provided by operating activities | 20,274 | 2,556 |
Cash flows from investing activities: | ||
Purchase of investment securities | (34,123) | (16,239) |
Purchase of bank owned life insurance | 0 | (3,500) |
Net increase in interest-bearing deposits | (12) | (250) |
Proceeds from sale of securities available for sale | 31 | 10,644 |
Principal payments on investment securities | 7,609 | 6,458 |
Proceeds from sale of non-marketable equity securities | 8,114 | 953 |
Purchase of non-marketable equity securities | (7,684) | (417) |
Proceeds from sale of foreclosed properties | 2,171 | 713 |
Net (increase) decrease in loans | (36,741) | 53,888 |
Net capital expenditures | (2,562) | (366) |
Net cash received from sale of office properties | 73 | 7 |
Net cash (used in) provided by investing activities | (63,124) | 51,891 |
Cash flows from financing activities: | ||
Net (decrease) increase in Federal Home Loan Bank advances | (32,000) | 8,609 |
Decrease in other borrowings | (1,260) | 0 |
Net increase (decrease) in deposits | 2,032 | (38,544) |
Proceeds from sale of preferred stock, net of costs | 61,289 | 0 |
Surrender of restricted shares of common stock | (25) | (17) |
Exercise of common stock options | 50 | 67 |
Repurchase shares of common stock | (1) | (16) |
Cash dividends paid | (1,181) | (843) |
Net cash provided by (used in) financing activities | 28,904 | (30,744) |
Net (decrease) increase in cash and cash equivalents | (13,946) | 23,703 |
Cash and cash equivalents at beginning of period | 41,677 | 10,046 |
Cash and cash equivalents at end of period | 27,731 | 33,749 |
Cash paid during the period for: | ||
Interest on deposits | 3,907 | 3,172 |
Interest on borrowings | 2,119 | 584 |
Income taxes | 920 | 979 |
Supplemental noncash disclosure: | ||
Transfers from loans receivable to foreclosed and repossessed assets | $ 591 | $ 543 |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements include the accounts of Citizens Community Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Citizens Community Federal N.A. (the "Bank"), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. As used in this quarterly report, the terms “we”, “us”, “our”, and “Citizens Community Bancorp, Inc.” mean the Company and its wholly owned subsidiary, the Bank, unless the context indicates other meaning. The Company is a bank holding company, supervised by the Federal Reserve Bank of Minneapolis (the "FRB"), and operates under the title of Citizens Community Bancorp, Inc. The Bank is a national banking association (a "National Bank") and operates under the title of Citizens Community Federal National Association ("Citizens Community Federal N.A."). The U.S. Office of the Comptroller of the Currency (the "OCC"), is the primary federal regulator for the Bank. The consolidated income of the Company is principally derived from the income of the Bank, the Company’s wholly owned subsidiary, serving customers in Wisconsin, Minnesota and Michigan through 22 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, agricultural operators and consumers, including one to four family residential mortgages. The Bank is subject to competition from other financial institutions and non-financial institutions providing financial products. Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies. In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the balance sheet date as of June 30, 2018 and through the date the financial statements were available to be issued for items that should potentially be recognized or disclosed in these consolidated financial statements. On August 18, 2017, the Company completed its merger with Wells Financial Corporation ("WFC"), pursuant to the merger agreement, dated March 17, 2017. At that time, the separate corporate existence of WFC ceased, and the Company survived the merger. In connection with the merger, the Company caused Wells Federal Bank to merge with and into the Bank, with the Bank surviving the merger. The merger expands the Bank's market share in Mankato and southern Minnesota, and added seven branch locations along with expanded services through Wells Insurance Agency, Inc. and loan servicing. On June 20, 2018, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with United Bancorporation (“Parent”) and its wholly-owned subsidiary, United Bank, a Wisconsin chartered bank (“United Bank”), pursuant to which the Company will, subject to the terms and conditions set forth therein, acquire 100% of the common stock of United Bank (the “Acquisition”) for approximately $50.7 million in cash, subject to adjustment as provided in the Stock Purchase Agreement. At the closing of the Acquisition, United Bank will become a wholly-owned subsidiary of the Company. Immediately following the closing of the Acquisition, the Company intends to merge United Bank with and into the Bank. On June 20, 2018, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with each of a limited number of institutional and other accredited investors, including certain officers and directors of the Company (collectively the “Purchasers”), pursuant to which the Company sold an aggregate of 500,000 shares of the Company’s 8.00% Series A Mandatorily Convertible Non-Cumulative Non-Voting Perpetual Preferred Stock, par value $0.01 per share, (the “Series A Preferred Stock”), in a private placement (the “Private Placement”) at $130.00 per share, for aggregate gross proceeds of $65 million. The Securities Purchase Agreement contains customary representations, warranties, and covenants of the Company and the Purchasers. Each share of Series A Preferred Stock will be mandatorily convertible into ten shares of common stock following receipt of stockholder approval of the issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. The Company has scheduled a special meeting of stockholders on September 25, 2018 for purposes of a stockholder vote regarding approval of issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. The accompanying consolidated interim financial statements are unaudited. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Unless otherwise stated herein, and except for shares and per share amounts, all amounts are in thousands. Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated. Use of Estimates – Preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, fair value of financial instruments, the allowance for loan losses, mortgage servicing rights, foreclosed and repossessed assets, valuation of acquired intangible assets, useful lives for depreciation and amortization, indefinite-lived intangible assets, stock-based compensation and long-lived assets, deferred tax assets, uncertain income tax positions and contingencies. Management does not anticipate any material changes to estimates made herein in the near term. Factors that may cause sensitivity to the aforementioned estimates include, but are not limited to: those items described under the caption, "Risk Factors" in Item 1A of the annual report on Form 10-K for the year ended September 30, 2017, filed with the SEC on December 13, 2017, external market factors such as market interest rates and unemployment rates, changes to operating policies and procedures, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period. Investment Securities; Held to Maturity and Available for Sale – Management determines the appropriate classification of investment securities at the time of purchase and reevaluates such designation as of the date of each balance sheet. Securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Held to maturity securities are stated at amortized cost. Investment securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value, with unrealized holding gains and losses deemed other than temporarily impaired due to non-credit issues being reported in other comprehensive income (loss), net of tax. Unrealized losses deemed other-than-temporary due to credit issues are reported in the Company’s net income in the period in which the losses arise. Interest income includes amortization of purchase premium or accretion of purchase discount. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the underlying securities. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. As part of such monitoring, the credit quality of individual securities and their issuer is assessed. Significant inputs used to measure the amount of other-than-temporary impairment related to credit loss include, but are not limited to; the Company's intent and ability to sell the debt security prior to recovery, that it is more likely than not that the Company will not sell the security prior to recovery, default and delinquency rates of the underlying collateral, remaining credit support, and historical loss severities. Adjustments to market value of available for sale securities that are considered temporary are recorded in other comprehensive income or loss as separate components of stockholders' equity, net of tax. If the unrealized loss of a security is identified as other-than-temporary based on information available, such as the decline in the creditworthiness of the issuer, external market ratings, or the anticipated or realized elimination of associated dividends, such impairments are further analyzed to determine if credit loss exists. If there is a credit loss, it will be recorded in the Company's consolidated statement of operations. Non-credit components of the unrealized losses on available for sale securities will continue to be recognized in other comprehensive income (loss), net of tax. Loans – Loans that management has the intent and ability to hold for the foreseeable future, until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, and net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance of these loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments. Delinquency fees are recognized into income when chargeable, assuming collection is reasonably assured. Interest income on commercial, mortgage and consumer loans is discontinued according to the following schedules: •Commercial/agricultural real estate loans past due 90 days or more; •Commercial/agricultural non-real estate loans past due 90 days or more; •Closed end consumer non-real estate loans past due 120 days or more; and •Residential real estate loans and open ended consumer non-real estate loans past due 180 days or more. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash basis or cost recovery method, and is generally applied against principal, until qualifying for return to accrual status. Loans are returned to accrual status when payments are made that bring the loan account current with the contractual term of the loan and a 6 month payment history has been established. Interest on impaired loans considered troubled debt restructurings (“TDRs”) or substandard, less than 90 days delinquent, is recognized as income as it accrues based on the revised terms of the loan over an established period of continued payment. Substandard loans, as defined by the OCC, our primary banking regulator, are loans that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Residential real estate loans and open ended consumer loans are charged off to estimated net realizable value less estimated selling costs at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more. Closed end consumer loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 120 days or more. Commercial loans, including agricultural and C&I loans, are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more for open ended loans or loans secured by real estate collateral, or the loan becomes 120 days past due or more for loans secured by non-real estate collateral. The Company defines Acquired Loans as all loans acquired in a business combination accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, "Business Combinations". These loans include, but are not limited to loans accounted for under FASB ASC 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" as discussed below. All other loans are defined as Originated Loans. Allowance for Loan Losses – The allowance for loan losses (“ALL”) is a valuation allowance for probable and inherent credit losses in our loan portfolio. Loan losses are charged against the ALL when management believes that the collectability of a loan balance is unlikely. Subsequent recoveries, if any, are credited to the ALL. Management estimates the required ALL balance taking into account the following factors: past loan loss experience; the nature, volume and composition of our loan portfolio; known and inherent risks in our loan portfolio; information about specific borrowers’ ability to repay; estimated collateral values; current economic conditions; and other relevant factors determined by management. The ALL consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for certain qualitative factors. The entire ALL balance is available for any loan that, in our management’s judgment, should be charged off. A loan is impaired when full payment under the loan terms is not expected. Impaired loans consist of all TDRs, as well as individual substandard loans not considered a TDR when full payment under the loan terms is not expected. All TDRs are individually evaluated for impairment. See Note 3, “Loans, Allowance for Loan Losses and Impaired Loans” for more information on what we consider to be a TDR. If a TDR or substandard loan is deemed to be impaired, a specific ALL allocation may be established so that the loan is reported, net, at the lower of (a) outstanding principal balance, (b) the present value of estimated future cash flows using the loan’s existing rate; or (c) at the fair value of any collateral, less estimated disposal costs, if repayment is expected solely from the underlying collateral of the loan. For TDRs less than 90 days past due, and certain substandard loans that are less than 90 days delinquent, the likelihood of the loan migrating to over 90 days past due is also taken into account when determining the specific ALL allocation for these particular loans. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, as well as non-TDR commercial loans, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures. Mortgage Servicing Rights- Mortgage servicing rights ("MSR") assets initially arose as a result of the WFC merger. WFC had retained the right to service certain loans sold in the secondary market. The Company continues to sell loans to investors in the secondary market and generally retains the rights to service mortgage loans sold to others. MSR assets are initially measured at fair value; assessed at least annually for impairment; carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. MSR assets are amortized in proportion to and over the period of estimated net servicing income, with the amortization recorded in non-interest expense in the consolidated statement of operations. The valuation of MSRs and related amortization thereon are based on numerous factors, assumptions and judgments, such as those for: changes in the mix of loans, interest rates, prepayment speeds, and default rates. Changes in these factors, assumptions and judgments may have a material effect on the valuation and amortization of MSRs. Although management believes that the assumptions used to evaluate the MSRs for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of MSRs. Acquired Loans -Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value with no carryover of related allowance for credit losses. Any allowance for loan loss on these pools reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments will not be collected. At acquisition, the Company considers several factors as indicators that an acquired loan has evidence of deterioration in credit quality. These factors include loans 90 days or more past due, loans with an internal risk grade of substandard or below, loans classified as non-accrual by the acquired institution, and loans that have been previously modified in a troubled debt restructuring. Under the ASC 310-30 model, the excess of cash flows expected to be collected at acquisition over recorded fair value is referred to as the accretable yield and is the interest component of expected cash flow. The accretable yield is recognized into income over the remaining life of the loan if the timing and/or amount of cash flows expected to be collected can be reasonably estimated (the accretion method). If the timing or amount of cash flows expected to be collected cannot be reasonably estimated, the cost recovery method of income recognition is used. The difference between the loan’s total scheduled principal and interest payments over all cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the non-accretable difference. The non-accretable difference represents contractually required principal and interest payments which the Company does not expect to collect. Over the life of the loan, management continues to estimate cash flows expected to be collected. Decreases in expected cash flows are recognized as impairments through a charge to the provision for loan losses resulting in an increase in the allowance for loan losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized in interest income on a prospective basis over the loan’s remaining life. Acquired loans that were not individually determined to be purchased with deteriorated credit quality are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs (ASC 310-20), whereby the premium or discount derived from the fair market value adjustment, on a loan-by-loan or pooled basis, is recognized into interest income on a level yield basis over the remaining expected life of the loan or pool. Loans Acquired through Business Combination with Deteriorated Credit Quality - ASC Topic 310-30, "Loan and Debt Securities Acquired with Deteriorated Credit Quality", applies to loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payments receivable. In accordance with this guidance, these loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield”, is recognized as interest income over the life of the loans using a method that approximates the level-yield method. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference”, are not recognized as a yield adjustment, a loss accrual, or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairments. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. Foreclosed and Repossessed Assets, net – Assets acquired through foreclosure or repossession are initially recorded at fair value, less estimated costs to sell, which establishes a new cost basis. If the fair value declines subsequent to foreclosure or repossession, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed and are included in non-interest expense, other on our Consolidated Statements of Operations. Goodwill and other intangible assets-The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, "Intangibles - Goodwill and Other." The Company records the excess of the cost of acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill. The Company amortizes acquired intangible assets with definite useful economic lives over their useful economic lives utilizing the straight-line method. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amounts of the intangible assets may be impaired. The Company does not amortize goodwill and any acquired intangible asset with an indefinite useful economic life, but reviews them for impairment at a reporting unit level on an annual basis, or when events or changes in circumstances indicate that the carrying amounts may be impaired. A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management. The Company has one reporting unit as of September 30, 2017 which is related to its banking activities. The Company has performed the required goodwill impairment test and has determined that goodwill was not impaired as of September 30, 2017. Income Taxes – The Company accounts for income taxes in accordance with the FASB ASC Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), enacted on December 22, 2017, reduces corporate Federal income tax rates for the Company from 34% to 24.5% for 2018, and 21% for 2019. GAAP requires the impact of the provisions of the Tax Act be accounted for in the period of enactment. At December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, we made a reasonable estimate and continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. The Company revalued its net deferred tax assets to account for the future impact of lower corporate taxes. For the items for which we were able to determine a reasonable estimate, we recorded an increased provisional amount of income tax expense of $275 in December 2017, related to the revaluation of the deferred tax assets to both the revaluation of timing differences and the unrealized loss on securities. In the second and third quarter of fiscal 2018, we reviewed our analysis from first quarter and determined there were no material changes warranting any further adjustment. Provisional amounts. Deferred tax assets and liabilities: We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amounts recorded in December 2017 related to the re-measurement of our deferred tax balance was $275. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carryforward periods, any experience with utilization of operating loss and tax credit carryforwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. Revenue Recognition - The Company recognizes revenue in the consolidated statements of operations as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. Non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Non-interest income includes fees from brokerage and advisory service, insurance commission, deposit accounts, merchant services, ATM and debit card fees, mortgage banking activities, and other miscellaneous services and transactions. Commission revenue is recognized as of the effective date of the insurance policy or the date the customer is billed, whichever is later. The Company also receives contingent commissions from insurance companies which are based on the overall profitability of their relationship based primarily on the loss experience of the insurance placed by the Company. Contingent commissions from insurance companies are recognized when determinable. Commission revenue is included in non-interest insurance commission income in the consolidated statement of operations. Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company's stock price on the reporting date and the Series A Preferred Stock which is mandatorily convertible into ten shares of common stock following receipt of stockholder approval of the issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. . Operating Segments—While our chief decision makers monitor the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Reclassifications – Certain items previously reported were reclassified for consistency with the current presentation. Recent Accounting Pronouncements - In February 2018, the FASB issued Accounting Standards Update ("ASU") 2018-02, "Income Statement--Reporting Comprehensive Income (Topic 220): Reclassification of Certain Income Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for certain stranded tax effects resulting from the Tax Cuts and Jobs Act. For public entities, ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adoption of ASU 2018-02 in the current period resulted in a reclassification of $137 from AOCI to retained earnings and had no material effect on the Company's consolidated results of operations, financial position or cash flows. In May 2017, the FASB issued Accounting Standards Update ("ASU") 2017-09, "Compensation--Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides specific guidance as to which changes to terms and conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. For public entities, ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of ASU 2017-09 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In March 2017, the FASB issued ASU 2017-08, "Receivables--Nonrefundable fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. For public entities, ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects the adoption of ASU 2017-08 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In February 2017, the FASB issued ASU 2017-05, "Other Income--Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets." ASU 2017-05 clarifies previously issued ASU 2014-09, primarily with respect to (a) derecognition of an in substance non-financial asset, and (b) partial sales of non-financial assets. For public entities, ASU 2017-05 is effective at the same time of adoption of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is for annual reporting periods beginning after December 15, 2017 and related interim periods. Early adoption is not permitted. The Company expects the adoption of ASU 2017-05 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In January, 2017, the FASB issued ASU 2017-04, "Intangibles--Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." ASU 2017-04 intends to simplify how an entity is required to test goodwill impairment. For public entities, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, and any related interim annual goodwill impairment tests thereon. The Company expects the adoption of ASU 2017-04 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In January, 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." ASU 2017-01 narrows the definition of a "business" with respect to accounting for business combinations. For public entities, ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company expects the adoption of ASU 2017-01 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In June, 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the excepted credit losses on financial instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has not yet evaluated the potential effects of adopting ASU 2016-13 on the Company’s consolidated results of operations, financial position or cash flows. The Company has not yet evaluated the potential effects of adopting ASU 2016-13 on the Company's consolidated results of operations, financial position or cash flows. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 is intended to address certain specific issues identified by the FASB-IASB Joint Transition Resource Group for Revenue Recognition with respect to ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” For public entities, ASU 2016-12 and ASU 2014-09 are effective on a retrospective basis for the annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is not permitted. Based on our evaluation under the current guidance, we estimate that substantially all of our interest income and non-interest income will not be impacted by the adoption of these standards, because either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP, or the anticipated revenue recognition outcomes with the adoption of these standards will likely be similar to our current revenue recognition practices. The company evaluated certain non-interest revenue streams, including deposit related fees, service charges and interchange fees, to determine the potential impact of the guidance on the Company's consolidated financial statements. The Company is expected to use the modified retrospective method for transition, in which the cumulative effect will be recognized at the date of adoption with no restatement of comparative periods presented. The Company expects additional financial statement disclosures of non-interest income revenue streams and associated internal controls to be implemented along with the adoption of these standards. In addition, we are reviewing our business processes, systems and controls to support recognition and disclosures under the new standard. The Company expects that the adoption of ASUs 2016-12 and 2014-09 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 is intended to simplify certain areas of share-based payment transaction accounting, including the income tax consequences, equity or liability classification of certain share awards, and classification on the statement of cash flows. ASU 2016-09 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. The Company adoption of ASU 2016-09 had no material effect on the Company's results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet evaluated the impact of ASU 2016-02 on the Company's results of operations, financial position or cash flows. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 is intended to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. For public entities, ASU 2016-01 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is not permitted, except for certain provisions of ASU 2016-01, which are not applicable to the Company. The Company expects the adoption of ASU 2016-01 to have no material effect on the Company's consolidated results of operations, financial position or cash flows. |
INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of June 30, 2018 and September 30, 2017, respectively, were as follows:
As of June 30, 2018, the Bank has pledged U.S. Government Agency securities with a market value of $2,191 as collateral against a borrowing line of credit with the Federal Reserve Bank. However, as of June 30, 2018, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of June 30, 2018, the Bank has pledged U.S. Government Agency securities with a market value of $5,490, mortgage-backed securities with a market value of $22,779 and interest bearing investment CD's with a carrying value of $746 as collateral against specific municipal deposits. The estimated fair value of securities at June 30, 2018 and September 30, 2017, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and municipal securities due to the call feature.
Securities with unrealized losses at June 30, 2018 and September 30, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS | LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS Portfolio Segments: Residential real estate loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower's documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home's appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential real estate portfolio as relatively small loan amounts are spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis. Commercial and agricultural real estate loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75%. Consumer non-real estate loans are comprised of originated indirect paper loans secured primarily by boats and recreational vehicles, purchased indirect paper loans secured primarily by household goods and other consumer loans secured primarily by automobiles and other personal assets. Consumer loans underwriting terms often depend on the collateral type, debt to income ratio and the borrower's creditworthiness as evidenced by their credit score. Collateral value alone may not provide an adequate source of repayment of the outstanding loan balance in the event of a consumer non-real estate default. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral. Commercial non-real estate loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural non-real estate loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio is presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A "Pass" loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A "Watch" loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A "Special Mention" loan has one or more potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A "Substandard" loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A "Doubtful" loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 9 - Loss. Loans classified as "Loss" are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. Below is a summary of originated and acquired loans by type and risk rating as of June 30, 2018:
Below is a summary of originated loans by type and risk rating as of September 30, 2017:
Allowance for Loan Losses - The ALL represents management’s estimate of probable and inherent credit losses in the Bank’s loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. There are many factors affecting the ALL; some are quantitative, while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which result in probable credit losses), includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provision for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies also review the Bank’s ALL. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of our management based on information available to the regulators at the time of their examinations. Changes in the ALL by loan type for the periods presented below were as follows:
The Bank has originated substantially all loans currently recorded on the Company’s accompanying Consolidated Balance Sheet, except as noted below. In February 2016, the Bank selectively purchased loans from Central Bank in Rice Lake and Barron, Wisconsin in the amount of $16,363. In May 2016, the Bank acquired loans from Community Bank of Northern Wisconsin ("CBN"), headquartered in Rice Lake, Wisconsin totaling $111,740. In August 2017, the Bank acquired loans from Wells Federal, headquartered in Wells, Minnesota totaling $189,077. During October 2012, the Bank entered into an agreement to purchase short term consumer loans from a third party on an ongoing basis. As part of the servicer agreement entered into in connection with this purchase agreement, the third party seller agreed to purchase or substitute performing consumer loans for all contracts that become 120 days past due. Pursuant to the ongoing loan purchase agreement, a restricted reserve account was established at 3% of the outstanding consumer loan balances purchased up to a maximum of $1,000, with such percentage amount of the loans being deposited into a segregated reserve account. The funds in the reserve account are to be released to compensate the Bank for any purchased loans that are not purchased back by the seller or substituted with performing loans and are ultimately charged off by the Bank. During the first quarter of fiscal 2015, the Board of Directors increased the limit of these purchased consumer loans to a maximum of $50,000. As of September 30, 2017, new purchases from this third party were terminated. As of June 30, 2018, the balance of these purchased consumer loans was $19,801 compared to $29,555 as of September 30, 2017. The balance in the cash reserve account at June 30, 2018 was $622, which is included in Deposits on the accompanying Consolidated Balance Sheet. To date, the Company has not charged off or experienced losses related to the purchased loans. The weighted average rate earned on these purchased consumer loans was 4.20% as of June 30, 2018. Loans receivable by loan type as of the end of the periods shown below were as follows:
An aging analysis of the Company’s residential real estate, commercial/agriculture real estate, consumer and other loans and purchased third party loans as of June 30, 2018 and September 30, 2017, respectively, was as follows:
At June 30, 2018, the Company has identified impaired loans of $23,233, consisting of $8,210 TDR loans, of which $5,762 are performing TDR loans, $9,626 purchased credit impaired loans, and $5,397 substandard non-TDR loans, which includes $2,908 of non-PCI acquired loans. At September 30, 2017, the Company identified impaired loans of $24,359, consisting of $5,851 TDR loan, of which $5,230 are performing TDR loans, $12,035 purchased credit impaired loans, and $6,473 substandard non-TDR loans, which includes $2,387 of non-PCI acquired loans. A loan is identified as impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Performing TDRs consist of loans that have been modified and are performing in accordance with the modified terms for a sufficient length of time, generally six months, or loans that were modified on a proactive basis. A summary of the Company’s impaired loans as of June 30, 2018 and September 30, 2017 was as follows:
Troubled Debt Restructuring – A TDR includes a loan modification where a borrower is experiencing financial difficulty and the Bank grants a concession to that borrower that the Bank would not otherwise consider except for the borrower’s financial difficulties. Concessions include, but are not limited to, an extension of loan terms, renewals of existing balloon loans, reductions in interest rates and consolidating existing Bank loans at modified terms. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status. There were 7 delinquent TDRs greater than 60 days past due with a recorded investment of $1,117 at June 30, 2018, compared to 3 such loans with a recorded investment of $504 at September 30, 2017. Following is a summary of TDR loans by accrual status as of June 30, 2018 and September 30, 2017.
There were no TDR commitments or unused lines of credit meeting our TDR criteria as of June 30, 2018. The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the nine months ended June 30, 2018 and the year ended September 30, 2017:
A summary of loans by loan segment modified in a troubled debt restructuring as of June 30, 2018 and September 30, 2017, was as follows:
The following table provides information related to restructured loans that were considered in default as of June 30, 2018 and September 30, 2017:
Included above are two TDR loans that became in default during the three months ended June 30, 2018. All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-20:
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MORTGAGE SERVICING RIGHTS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS Mortgage servicing rights--Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans as of June 30, 2018 and September 30, 2017 were $281,076 and $282,392, respectively, and consisted of one to four family residential real estate loans. These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and the Federal National Mortgage Association. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $2,610 and $3,208, at June 30, 2018 and September 30, 2017, respectively. Mortgage servicing rights activity for the nine months ended June 30, 2018 and year ended September 30, 2017 were as follows:
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FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2018 and September 30, 2017 is as follows:
Federal Home Loan Bank Advances and Irrevocable Standby Letters of Credit The Bank had an outstanding balance of $29,000 with a rate of 2.12% on the FHLB variable rate overnight borrowings at June 30, 2018. All fixed rate advances from the FHLB mature on various dates through July 2018. Each Federal Home Loan Bank advance is payable at the maturity date, with a prepayment penalty for fixed rate advances. The FHLB variable rate open line of credit and fixed rate advances are secured by $311,179 of real estate and commercial and industrial loans. The Bank has an irrevocable Standby Letter of Credit Master Reimbursement Agreement with the Federal Home Loan Bank. This irrevocable standby letter of credit ("LOC") is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances. These balances were $45,005 and $30,233 at June 30, 2018 and September 30, 2017, respectively. At June 30, 2018, the Bank’s available and unused portion of this borrowing arrangement was approximately $208,160, compared to $92,959 as of September 30, 2017. Maximum month-end amounts outstanding under this borrowing agreement were $109,500 and $90,000 during the nine months ended June 30, 2018 and year ended September 30, 2017, respectively. Senior Notes and Revolving Line of Credit On May 16, 2016, the Company entered into a Loan Agreement evidencing an $11,000 term loan maturing on May 15, 2021, payable in sixteen consecutive quarterly principal installments beginning on August 15, 2017. Installment nos. 1 to 15, inclusive, being in the amount of approximately $306 each, and installment no. 16, a balloon payment, being for the entire then-unpaid principal balance, due and payable on May 15, 2021, if not paid sooner. The proceeds from the Loan were used by the Company for the sole purpose of financing the acquisition, by merger, of CBN. On May 30, 2017, the Company extended a $5,000 term loan facility for the sole purpose of financing the acquisition, by merger, of Wells Financial Corporation. On August 17, 2017, this term loan was funded and matures on August 15, 2022 with a ten year amortization. The variable rate senior notes provide for a floating interest rate that resets quarterly at rates that are indexed to the three-month London interbank offered rate ("LIBOR") plus 2.70%. The contractual interest rates for those notes ranged from 4.01% to 5.07% during the nine months ended June 30, 2018, and from 3.44% to 4.01% during the year ended September 30, 2017. The weighted average contractual interest rates payable were 5.07% and 4.01% at June 30, 2018 and September 30, 2017, respectively. Subordinated Notes On August 10, 2017, the Company issued $15,000 of subordinated notes maturing on August 10, 2027. The proceeds of the notes were used by the Company for the sole purpose of financing the acquisition, by merger, of Wells Financial Corporation. The subordinated notes are unsecured and are subordinate to the claims of other creditors of the Company. The subordinated notes mature in August 2027, and convert to variable interest rate notes in August 2022. These notes provide for an annual fixed interest rate for the first five years of 6.75%. After the fixed interest period and through maturity, the interest rate will be reset quarterly to equal the three-month LIBOR rate, plus 4.90%. Interest on the Notes will be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year through the maturity date. Debt Issuance Costs Debt issuance costs, consisting primarily of investment banking and loan origination fees, of $380 were incurred in conjunction with the senior and the issuance of subordinated notes for the year ended September 30, 2017. The unamortized amount of debt issuance costs at June 30, 2018 and September 30, 2017 was $344 and $375. These debt issuance costs are included in other borrowings on the consolidated balance sheet. Maturities of FHLB advances and other borrowings are as follows:
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STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In February 2005, the Company’s stockholders approved the Company’s 2004 Recognition and Retention Plan. This plan provides for the grant of up to 113,910 shares of the Company’s common stock to eligible participants under this plan. As of June 30, 2018, 113,910 restricted shares under this plan were granted. In February 2005, the Company’s stockholders also approved the Company’s 2004 Stock Option and Incentive Plan. This plan provides for the grant of nonqualified and incentive stock options and stock appreciation rights to eligible participants under the plan. The plan provides for the grant of awards for up to 284,778 shares of the Company’s common stock. At June 30, 2018, 284,778 options had been granted under this plan to eligible participants. This plan was terminated on January 18, 2018. In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan. The aggregate number of shares of common stock reserved and available for issuance under the 2008 Equity Incentive Plan is 597,605 shares. Under this Plan, the Compensation Committee may grant stock options and stock appreciation rights that, upon exercise, result in the issuance of 426,860 shares of the Company’s common stock. The Committee may also grant shares of restricted stock and restricted stock units for an aggregate of 170,745 shares of Company common stock under this plan. As of June 30, 2018, 89,183 restricted shares under this plan were granted. As of June 30, 2018, 181,000 options had been granted to eligible participants. As of January 18, 2018, no new awards will be granted under the 2008 Equity Incentive Plan. Restricted shares granted to date under the 2004 Recognition and Retention Plan and the 2008 Equity Incentive Plan were awarded at no cost to the employee and vest pro rata over a two to five-year period from the grant date, as determined by the Board of Directors at issuance. Options granted to date under these plans vest pro rata over a five-year period from the grant date. Unexercised, nonqualified stock options expire within 15 years of the grant date and unexercised incentive stock options expire within 10 years of the grant date. On March 27, 2018, the stockholders of Citizens Community Bancorp, Inc. approved the 2018 Equity Incentive Plan at the 2018 Annual Meeting of Stockholders. The aggregate number of shares of common stock reserved and available for issuance under the 2018 Equity Incentive Plan is 350,000 shares. As of June 30, 2018, 13,707 restricted shares had been granted under this plan. As of June 30, 2018, no stock options had been granted under this plan. Compensation expense related to restricted stock awards from these plans was $94 and $177 for the three and nine months ended June 30, 2018, compared to $15 and $31 for the three and nine months ended June 30, 2017.
The Company accounts for stock-based employee compensation related to the Company’s 2004 Stock Option and Incentive Plan and the 2008 Equity Incentive Plan using the fair-value-based method. Accordingly, management records compensation expense based on the value of the award as measured on the grant date and then the Company recognizes that cost over the vesting period for the award. The compensation cost recognized for stock-based employee compensation related to both plans for the three and nine month periods ended June 30, 2018 was $5 and $6, respectively. The compensation cost recognized for stock-based employee compensation related to both plans for the three and nine month periods ended June 30, 2017, was $8 and $15, respectively.
Information related to the 2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan during each year follows:
Set forth below is a table showing relevant assumptions used in calculating stock option expense related to the Company’s 2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan:
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PREFERRED STOCK |
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Jun. 30, 2018 | |
Equity [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK On June 20, 2018, the Company entered into a Securities Purchase Agreement with each of a limited number of institutional and other accredited investors, including certain officers and directors of the Company, pursuant to which the Company sold an aggregate of 500,000 shares of the Company’s 8.00% Series A Mandatorily Convertible Non-Cumulative Non-Voting Perpetual Preferred Stock, par value $0.01 per share, in a private placement at $130.00 per share, for aggregate gross proceeds of $65 million. The Securities Purchase Agreement contains customary representations, warranties, and covenants of the Company and the Purchasers. The 500,000 shares of the Company's 8.00% Series A Preferred Stock, totaling $61,289, net of issuance costs, is included in total stockholder's equity on the consolidated balance sheets. These issuance costs totaled $3,711 and consisted of legal, accounting and placement fees. Each share of Series A Preferred Stock will be mandatorily convertible into ten shares of common stock following receipt of stockholder approval of the issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. The Company has scheduled a special meeting of stockholders on September 25, 2018 for purposes of a stockholder vote regarding approval of issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. |
FAIR VALUE ACCOUNTING |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE ACCOUNTING | FAIR VALUE ACCOUNTING ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The statement describes three levels of inputs that may be used to measure fair value: Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. The fair value of securities available for sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); 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 (Level 2 inputs). Where such quotes are not available, the Company utilizes independent third party valuation analysis to support the Company’s estimates and judgments in determining fair value (Level 3 inputs). Assets Measured on a Recurring Basis The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2018 and September 30, 2017:
Assets Measured on Nonrecurring Basis The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2018 and September 30, 2017:
The fair value of impaired loans referenced above was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans. The fair value of foreclosed and repossessed assets was determined by obtaining market price valuations from independent third parties wherever such quotes were available for other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned. The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at June 30, 2018.
(1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of impaired loans and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. Fair Values of Financial Instruments ASC 825-10 and ASC 270-10, Interim Disclosures about Fair Value Financial Instruments, require disclosures about fair value financial instruments and significant assumptions used to estimate fair value. The estimated fair values of financial instruments not previously disclosed are determined as follows: Cash and Cash Equivalents Due to their short-term nature, the carrying amounts of cash and cash equivalents are considered to be a reasonable estimate of fair value and represents a level 1 measurement. Other Interest-Bearing Deposits Fair value of interest bearing deposits is estimated using a discounted cash flow analysis based on current interest rates being offered by instruments with similar terms and represents a level 2 measurement. Non-marketable Equity Securities, at cost Non-marketable equity securities are comprised of Federal Home Loan Bank stock and Federal Reserve Bank stock carried at cost, which are their redeemable fair values since the market for each category of this stock is restricted and represents a level 1 measurement. Loans Receivable, net Fair value is estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as real estate, C&I and consumer. The fair value of loans is calculated by discounting scheduled cash flows through the estimated maturity date using market discount rates reflecting the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Bank’s repayment schedules for each loan classification. The fair value of variable rate loans approximates carrying value. The net carrying value of the loans acquired through the CBN and WFC acquisition approximates the fair value of the loans at June 30, 2018. The fair value of loans is considered to be a level 3 measurement. Loans Held for Sale Fair values are based on quoted market prices of similar loans sold on the secondary market. Mortgage Servicing Rights Fair values are estimated using discounted cash flows based on current market rates and conditions. Impaired Loans (carried at fair value) Impaired loans are loans in which the Company has measured impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Foreclosed Assets (carried at fair value) Foreclosed assets are the only non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less cost to sell. At foreclosure or repossession, if the fair value, less estimated costs to sell, of the collateral acquired (real estate, vehicles, equipment) is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held-for-sale is estimated using Level 3 inputs based on observable market data. Accrued Interest Receivable and Payable Due to their short-term nature, the carrying amounts of accrued interest receivable and payable are considered to be a reasonable estimate of fair value and represents a level 1 measurement. Deposits The fair value of deposits with no stated maturity, such as demand deposits, savings accounts, and money market accounts, is the amount payable on demand at the reporting date and represents a level 1 measurement. The fair value of fixed rate certificate accounts is calculated by using discounted cash flows applying interest rates currently being offered on similar certificates and represents a level 3 measurement. The net carrying value of fixed rate certificate accounts acquired through the CBN acquisition approximates the fair value of the certificates at June 30, 2018 and represents a level 3 measurement. Federal Home Loan Bank ("FHLB") Advances The fair value of long-term borrowed funds is estimated using discounted cash flows based on the Bank’s current incremental borrowing rates for similar borrowing arrangements. The carrying value of short-term borrowed funds approximates their fair value and represents a level 2 measurement. Off-Balance Sheet Instruments The fair value of off-balance sheet commitments would be estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the current interest rates, and the present creditworthiness of the customers. Since this amount is immaterial to the Company’s consolidated financial statements, no amount for fair value is presented. The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount and estimated fair value of the Company's financial instruments as of the dates indicated below were as follows:
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OTHER COMPREHENSIVE INCOME (LOSS) |
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OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the tax effects allocated to each component of other comprehensive income for the nine months ended June 30, 2018 and 2017:
(1) Amounts reclassified to retained earnings due to early adoption of ASU 2018-02. For further information, refer to Note 1. The changes in the accumulated balances for each component of other comprehensive income (loss) for the twelve months ended September 30, 2017 and the nine months ended June 30, 2018 were as follows:
Reclassifications out of accumulated other comprehensive income (loss) for the nine months ended June 30, 2018 were as follows:
(1) Amounts in parentheses indicate decreases to income/loss. Reclassifications out of accumulated other comprehensive income for the nine months ended June 30, 2017 were as follows:
(1) Amounts in parentheses indicate decreases to profit/loss. |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates – Preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, fair value of financial instruments, the allowance for loan losses, mortgage servicing rights, foreclosed and repossessed assets, valuation of acquired intangible assets, useful lives for depreciation and amortization, indefinite-lived intangible assets, stock-based compensation and long-lived assets, deferred tax assets, uncertain income tax positions and contingencies. Management does not anticipate any material changes to estimates made herein in the near term. Factors that may cause sensitivity to the aforementioned estimates include, but are not limited to: those items described under the caption, "Risk Factors" in Item 1A of the annual report on Form 10-K for the year ended September 30, 2017, filed with the SEC on December 13, 2017, external market factors such as market interest rates and unemployment rates, changes to operating policies and procedures, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period. |
Investment Securities; Held to Maturity and Available for Sale | Investment Securities; Held to Maturity and Available for Sale – Management determines the appropriate classification of investment securities at the time of purchase and reevaluates such designation as of the date of each balance sheet. Securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Held to maturity securities are stated at amortized cost. Investment securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value, with unrealized holding gains and losses deemed other than temporarily impaired due to non-credit issues being reported in other comprehensive income (loss), net of tax. Unrealized losses deemed other-than-temporary due to credit issues are reported in the Company’s net income in the period in which the losses arise. Interest income includes amortization of purchase premium or accretion of purchase discount. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the estimated lives of the underlying securities. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. As part of such monitoring, the credit quality of individual securities and their issuer is assessed. Significant inputs used to measure the amount of other-than-temporary impairment related to credit loss include, but are not limited to; the Company's intent and ability to sell the debt security prior to recovery, that it is more likely than not that the Company will not sell the security prior to recovery, default and delinquency rates of the underlying collateral, remaining credit support, and historical loss severities. Adjustments to market value of available for sale securities that are considered temporary are recorded in other comprehensive income or loss as separate components of stockholders' equity, net of tax. If the unrealized loss of a security is identified as other-than-temporary based on information available, such as the decline in the creditworthiness of the issuer, external market ratings, or the anticipated or realized elimination of associated dividends, such impairments are further analyzed to determine if credit loss exists. If there is a credit loss, it will be recorded in the Company's consolidated statement of operations. Non-credit components of the unrealized losses on available for sale securities will continue to be recognized in other comprehensive income (loss), net of tax. |
Loans | Loans – Loans that management has the intent and ability to hold for the foreseeable future, until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, and net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance of these loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments. Delinquency fees are recognized into income when chargeable, assuming collection is reasonably assured. Interest income on commercial, mortgage and consumer loans is discontinued according to the following schedules: •Commercial/agricultural real estate loans past due 90 days or more; •Commercial/agricultural non-real estate loans past due 90 days or more; •Closed end consumer non-real estate loans past due 120 days or more; and •Residential real estate loans and open ended consumer non-real estate loans past due 180 days or more. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash basis or cost recovery method, and is generally applied against principal, until qualifying for return to accrual status. Loans are returned to accrual status when payments are made that bring the loan account current with the contractual term of the loan and a 6 month payment history has been established. Interest on impaired loans considered troubled debt restructurings (“TDRs”) or substandard, less than 90 days delinquent, is recognized as income as it accrues based on the revised terms of the loan over an established period of continued payment. Substandard loans, as defined by the OCC, our primary banking regulator, are loans that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Residential real estate loans and open ended consumer loans are charged off to estimated net realizable value less estimated selling costs at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more. Closed end consumer loans are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 120 days or more. Commercial loans, including agricultural and C&I loans, are charged off to net realizable value at the earlier of when (a) the loan is deemed by management to be uncollectible, or (b) the loan becomes past due 180 days or more for open ended loans or loans secured by real estate collateral, or the loan becomes 120 days past due or more for loans secured by non-real estate collateral. The Company defines Acquired Loans as all loans acquired in a business combination accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, "Business Combinations". These loans include, but are not limited to loans accounted for under FASB ASC 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" as discussed below. All other loans are defined as Originated Loans. |
Allowance for Loan Losses | Allowance for Loan Losses – The allowance for loan losses (“ALL”) is a valuation allowance for probable and inherent credit losses in our loan portfolio. Loan losses are charged against the ALL when management believes that the collectability of a loan balance is unlikely. Subsequent recoveries, if any, are credited to the ALL. Management estimates the required ALL balance taking into account the following factors: past loan loss experience; the nature, volume and composition of our loan portfolio; known and inherent risks in our loan portfolio; information about specific borrowers’ ability to repay; estimated collateral values; current economic conditions; and other relevant factors determined by management. The ALL consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for certain qualitative factors. The entire ALL balance is available for any loan that, in our management’s judgment, should be charged off. A loan is impaired when full payment under the loan terms is not expected. Impaired loans consist of all TDRs, as well as individual substandard loans not considered a TDR when full payment under the loan terms is not expected. All TDRs are individually evaluated for impairment. See Note 3, “Loans, Allowance for Loan Losses and Impaired Loans” for more information on what we consider to be a TDR. If a TDR or substandard loan is deemed to be impaired, a specific ALL allocation may be established so that the loan is reported, net, at the lower of (a) outstanding principal balance, (b) the present value of estimated future cash flows using the loan’s existing rate; or (c) at the fair value of any collateral, less estimated disposal costs, if repayment is expected solely from the underlying collateral of the loan. For TDRs less than 90 days past due, and certain substandard loans that are less than 90 days delinquent, the likelihood of the loan migrating to over 90 days past due is also taken into account when determining the specific ALL allocation for these particular loans. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, as well as non-TDR commercial loans, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures. |
Mortgage Servicing Rights | Mortgage Servicing Rights- Mortgage servicing rights ("MSR") assets initially arose as a result of the WFC merger. WFC had retained the right to service certain loans sold in the secondary market. The Company continues to sell loans to investors in the secondary market and generally retains the rights to service mortgage loans sold to others. MSR assets are initially measured at fair value; assessed at least annually for impairment; carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. MSR assets are amortized in proportion to and over the period of estimated net servicing income, with the amortization recorded in non-interest expense in the consolidated statement of operations. The valuation of MSRs and related amortization thereon are based on numerous factors, assumptions and judgments, such as those for: changes in the mix of loans, interest rates, prepayment speeds, and default rates. Changes in these factors, assumptions and judgments may have a material effect on the valuation and amortization of MSRs. Although management believes that the assumptions used to evaluate the MSRs for impairment are reasonable, future adjustment may be necessary if future economic conditions differ substantially from the economic assumptions used to determine the value of MSRs. |
Acquired Loans | Acquired Loans -Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value with no carryover of related allowance for credit losses. Any allowance for loan loss on these pools reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments will not be collected. At acquisition, the Company considers several factors as indicators that an acquired loan has evidence of deterioration in credit quality. These factors include loans 90 days or more past due, loans with an internal risk grade of substandard or below, loans classified as non-accrual by the acquired institution, and loans that have been previously modified in a troubled debt restructuring. Under the ASC 310-30 model, the excess of cash flows expected to be collected at acquisition over recorded fair value is referred to as the accretable yield and is the interest component of expected cash flow. The accretable yield is recognized into income over the remaining life of the loan if the timing and/or amount of cash flows expected to be collected can be reasonably estimated (the accretion method). If the timing or amount of cash flows expected to be collected cannot be reasonably estimated, the cost recovery method of income recognition is used. The difference between the loan’s total scheduled principal and interest payments over all cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the non-accretable difference. The non-accretable difference represents contractually required principal and interest payments which the Company does not expect to collect. Over the life of the loan, management continues to estimate cash flows expected to be collected. Decreases in expected cash flows are recognized as impairments through a charge to the provision for loan losses resulting in an increase in the allowance for loan losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized in interest income on a prospective basis over the loan’s remaining life. Acquired loans that were not individually determined to be purchased with deteriorated credit quality are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs (ASC 310-20), whereby the premium or discount derived from the fair market value adjustment, on a loan-by-loan or pooled basis, is recognized into interest income on a level yield basis over the remaining expected life of the loan or pool. |
Loans Acquired through Business Combination with Deteriorated Credit Quality | Loans Acquired through Business Combination with Deteriorated Credit Quality - ASC Topic 310-30, "Loan and Debt Securities Acquired with Deteriorated Credit Quality", applies to loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payments receivable. In accordance with this guidance, these loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield”, is recognized as interest income over the life of the loans using a method that approximates the level-yield method. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference”, are not recognized as a yield adjustment, a loss accrual, or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairments. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. |
Foreclosed and Repossessed Assets, net | Foreclosed and Repossessed Assets, net – Assets acquired through foreclosure or repossession are initially recorded at fair value, less estimated costs to sell, which establishes a new cost basis. If the fair value declines subsequent to foreclosure or repossession, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed and are included in non-interest expense, other on our Consolidated Statements of Operations. |
Goodwill and other intangible assets | Goodwill and other intangible assets-The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, "Intangibles - Goodwill and Other." The Company records the excess of the cost of acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill. The Company amortizes acquired intangible assets with definite useful economic lives over their useful economic lives utilizing the straight-line method. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amounts of the intangible assets may be impaired. The Company does not amortize goodwill and any acquired intangible asset with an indefinite useful economic life, but reviews them for impairment at a reporting unit level on an annual basis, or when events or changes in circumstances indicate that the carrying amounts may be impaired. A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management. The Company has one reporting unit as of September 30, 2017 which is related to its banking activities. |
Income Taxes | Income Taxes – The Company accounts for income taxes in accordance with the FASB ASC Topic 740, “Income Taxes.” Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), enacted on December 22, 2017, reduces corporate Federal income tax rates for the Company from 34% to 24.5% for 2018, and 21% for 2019. GAAP requires the impact of the provisions of the Tax Act be accounted for in the period of enactment. At December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, we made a reasonable estimate and continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. The Company revalued its net deferred tax assets to account for the future impact of lower corporate taxes. For the items for which we were able to determine a reasonable estimate, we recorded an increased provisional amount of income tax expense of $275 in December 2017, related to the revaluation of the deferred tax assets to both the revaluation of timing differences and the unrealized loss on securities. In the second and third quarter of fiscal 2018, we reviewed our analysis from first quarter and determined there were no material changes warranting any further adjustment. Provisional amounts. Deferred tax assets and liabilities: We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amounts recorded in December 2017 related to the re-measurement of our deferred tax balance was $275. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carryforward periods, any experience with utilization of operating loss and tax credit carryforwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. |
Revenue Recognition | Revenue Recognition - The Company recognizes revenue in the consolidated statements of operations as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. Non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Non-interest income includes fees from brokerage and advisory service, insurance commission, deposit accounts, merchant services, ATM and debit card fees, mortgage banking activities, and other miscellaneous services and transactions. Commission revenue is recognized as of the effective date of the insurance policy or the date the customer is billed, whichever is later. The Company also receives contingent commissions from insurance companies which are based on the overall profitability of their relationship based primarily on the loss experience of the insurance placed by the Company. Contingent commissions from insurance companies are recognized when determinable. Commission revenue is included in non-interest insurance commission income in the consolidated statement of operations. |
Earnings Per Share | Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable during the period, consisting of stock options outstanding under the Company’s stock incentive plans that have an exercise price that is less than the Company's stock price on the reporting date and the Series A Preferred Stock which is mandatorily convertible into ten shares of common stock following receipt of stockholder approval of the issuance of the shares of common stock into which the Series A Preferred Stock is expected to be converted. . |
Operating Segments | Operating Segments—While our chief decision makers monitor the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications – Certain items previously reported were reclassified for consistency with the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In February 2018, the FASB issued Accounting Standards Update ("ASU") 2018-02, "Income Statement--Reporting Comprehensive Income (Topic 220): Reclassification of Certain Income Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for certain stranded tax effects resulting from the Tax Cuts and Jobs Act. For public entities, ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adoption of ASU 2018-02 in the current period resulted in a reclassification of $137 from AOCI to retained earnings and had no material effect on the Company's consolidated results of operations, financial position or cash flows. In May 2017, the FASB issued Accounting Standards Update ("ASU") 2017-09, "Compensation--Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides specific guidance as to which changes to terms and conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. For public entities, ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of ASU 2017-09 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In March 2017, the FASB issued ASU 2017-08, "Receivables--Nonrefundable fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. For public entities, ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects the adoption of ASU 2017-08 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In February 2017, the FASB issued ASU 2017-05, "Other Income--Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets." ASU 2017-05 clarifies previously issued ASU 2014-09, primarily with respect to (a) derecognition of an in substance non-financial asset, and (b) partial sales of non-financial assets. For public entities, ASU 2017-05 is effective at the same time of adoption of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is for annual reporting periods beginning after December 15, 2017 and related interim periods. Early adoption is not permitted. The Company expects the adoption of ASU 2017-05 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In January, 2017, the FASB issued ASU 2017-04, "Intangibles--Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." ASU 2017-04 intends to simplify how an entity is required to test goodwill impairment. For public entities, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, and any related interim annual goodwill impairment tests thereon. The Company expects the adoption of ASU 2017-04 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In January, 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." ASU 2017-01 narrows the definition of a "business" with respect to accounting for business combinations. For public entities, ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company expects the adoption of ASU 2017-01 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In June, 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the excepted credit losses on financial instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has not yet evaluated the potential effects of adopting ASU 2016-13 on the Company’s consolidated results of operations, financial position or cash flows. The Company has not yet evaluated the potential effects of adopting ASU 2016-13 on the Company's consolidated results of operations, financial position or cash flows. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 is intended to address certain specific issues identified by the FASB-IASB Joint Transition Resource Group for Revenue Recognition with respect to ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” For public entities, ASU 2016-12 and ASU 2014-09 are effective on a retrospective basis for the annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is not permitted. Based on our evaluation under the current guidance, we estimate that substantially all of our interest income and non-interest income will not be impacted by the adoption of these standards, because either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP, or the anticipated revenue recognition outcomes with the adoption of these standards will likely be similar to our current revenue recognition practices. The company evaluated certain non-interest revenue streams, including deposit related fees, service charges and interchange fees, to determine the potential impact of the guidance on the Company's consolidated financial statements. The Company is expected to use the modified retrospective method for transition, in which the cumulative effect will be recognized at the date of adoption with no restatement of comparative periods presented. The Company expects additional financial statement disclosures of non-interest income revenue streams and associated internal controls to be implemented along with the adoption of these standards. In addition, we are reviewing our business processes, systems and controls to support recognition and disclosures under the new standard. The Company expects that the adoption of ASUs 2016-12 and 2014-09 will have no material effect on the Company's consolidated results of operations, financial position or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 is intended to simplify certain areas of share-based payment transaction accounting, including the income tax consequences, equity or liability classification of certain share awards, and classification on the statement of cash flows. ASU 2016-09 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. The Company adoption of ASU 2016-09 had no material effect on the Company's results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. The Company has not yet evaluated the impact of ASU 2016-02 on the Company's results of operations, financial position or cash flows. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 is intended to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. For public entities, ASU 2016-01 is effective for the annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is not permitted, except for certain provisions of ASU 2016-01, which are not applicable to the Company. The Company expects the adoption of ASU 2016-01 to have no material effect on the Company's consolidated results of operations, financial position or cash flows. |
Fair Value Measurement | Fair Values of Financial Instruments ASC 825-10 and ASC 270-10, Interim Disclosures about Fair Value Financial Instruments, require disclosures about fair value financial instruments and significant assumptions used to estimate fair value. The estimated fair values of financial instruments not previously disclosed are determined as follows: Cash and Cash Equivalents Due to their short-term nature, the carrying amounts of cash and cash equivalents are considered to be a reasonable estimate of fair value and represents a level 1 measurement. Other Interest-Bearing Deposits Fair value of interest bearing deposits is estimated using a discounted cash flow analysis based on current interest rates being offered by instruments with similar terms and represents a level 2 measurement. Non-marketable Equity Securities, at cost Non-marketable equity securities are comprised of Federal Home Loan Bank stock and Federal Reserve Bank stock carried at cost, which are their redeemable fair values since the market for each category of this stock is restricted and represents a level 1 measurement. Loans Receivable, net Fair value is estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as real estate, C&I and consumer. The fair value of loans is calculated by discounting scheduled cash flows through the estimated maturity date using market discount rates reflecting the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Bank’s repayment schedules for each loan classification. The fair value of variable rate loans approximates carrying value. The net carrying value of the loans acquired through the CBN and WFC acquisition approximates the fair value of the loans at June 30, 2018. The fair value of loans is considered to be a level 3 measurement. Loans Held for Sale Fair values are based on quoted market prices of similar loans sold on the secondary market. Mortgage Servicing Rights Fair values are estimated using discounted cash flows based on current market rates and conditions. Impaired Loans (carried at fair value) Impaired loans are loans in which the Company has measured impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Foreclosed Assets (carried at fair value) Foreclosed assets are the only non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less cost to sell. At foreclosure or repossession, if the fair value, less estimated costs to sell, of the collateral acquired (real estate, vehicles, equipment) is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held-for-sale is estimated using Level 3 inputs based on observable market data. Accrued Interest Receivable and Payable Due to their short-term nature, the carrying amounts of accrued interest receivable and payable are considered to be a reasonable estimate of fair value and represents a level 1 measurement. Deposits The fair value of deposits with no stated maturity, such as demand deposits, savings accounts, and money market accounts, is the amount payable on demand at the reporting date and represents a level 1 measurement. The fair value of fixed rate certificate accounts is calculated by using discounted cash flows applying interest rates currently being offered on similar certificates and represents a level 3 measurement. The net carrying value of fixed rate certificate accounts acquired through the CBN acquisition approximates the fair value of the certificates at June 30, 2018 and represents a level 3 measurement. Federal Home Loan Bank ("FHLB") Advances The fair value of long-term borrowed funds is estimated using discounted cash flows based on the Bank’s current incremental borrowing rates for similar borrowing arrangements. The carrying value of short-term borrowed funds approximates their fair value and represents a level 2 measurement. Off-Balance Sheet Instruments The fair value of off-balance sheet commitments would be estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the current interest rates, and the present creditworthiness of the customers. Since this amount is immaterial to the Company’s consolidated financial statements, no amount for fair value is presented. The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The statement describes three levels of inputs that may be used to measure fair value: Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. The fair value of securities available for sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); 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 (Level 2 inputs). Where such quotes are not available, the Company utilizes independent third party valuation analysis to support the Company’s estimates and judgments in determining fair value (Level 3 inputs). |
INVESTMENT SECURITIES (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of June 30, 2018 and September 30, 2017, respectively, were as follows:
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Held-to-maturity securities |
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Available for sale securities with unrealized losses | Securities with unrealized losses at June 30, 2018 and September 30, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans by risk rating | Below is a summary of originated and acquired loans by type and risk rating as of June 30, 2018:
Below is a summary of originated loans by type and risk rating as of September 30, 2017:
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Changes in a specific component on impaired loans and a general component for non-impaired loans for the periods | Changes in the ALL by loan type for the periods presented below were as follows:
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Loans receivable | Loans receivable by loan type as of the end of the periods shown below were as follows:
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Aging analysis of the Bank real estate and consumer loans | An aging analysis of the Company’s residential real estate, commercial/agriculture real estate, consumer and other loans and purchased third party loans as of June 30, 2018 and September 30, 2017, respectively, was as follows:
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Bank impaired loans | A summary of the Company’s impaired loans as of June 30, 2018 and September 30, 2017 was as follows:
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Troubled debt restructuring | The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the nine months ended June 30, 2018 and the year ended September 30, 2017:
A summary of loans by loan segment modified in a troubled debt restructuring as of June 30, 2018 and September 30, 2017, was as follows:
The following table provides information related to restructured loans that were considered in default as of June 30, 2018 and September 30, 2017:
Following is a summary of TDR loans by accrual status as of June 30, 2018 and September 30, 2017.
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Schedule of acquired loans | The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
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Schedule of accretable yield | The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-20:
|
MORTGAGE SERVICING RIGHTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage servicing rights activity | Mortgage servicing rights activity for the nine months ended June 30, 2018 and year ended September 30, 2017 were as follows:
|
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A summary of Federal Home Loan Bank advances | A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2018 and September 30, 2017 is as follows:
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Schedule of maturities of long-term debt | Maturities of FHLB advances and other borrowings are as follows:
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STOCK-BASED COMPENSATION (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted stock awards |
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Summary of stock option activity |
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Information related to stock option plan | Information related to the 2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan during each year follows:
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Assumption used in calculating stock option expense | Set forth below is a table showing relevant assumptions used in calculating stock option expense related to the Company’s 2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan:
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FAIR VALUE ACCOUNTING (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured on a recurring basis | The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2018 and September 30, 2017:
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Assets measured on a nonrecurring basis | The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2018 and September 30, 2017:
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Fair value, assets measured on recurring and nonrecurring basis | The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at June 30, 2018.
(1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of impaired loans and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes. |
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Carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of the Company's financial instruments as of the dates indicated below were as follows:
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OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effects allocated to each component of other comprehensive income (loss) | The following table shows the tax effects allocated to each component of other comprehensive income for the nine months ended June 30, 2018 and 2017:
(1) Amounts reclassified to retained earnings due to early adoption of ASU 2018-02. For further information, refer to Note 1. |
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Changes in the accumulated balances for each component of other comprehensive income (loss) | The changes in the accumulated balances for each component of other comprehensive income (loss) for the twelve months ended September 30, 2017 and the nine months ended June 30, 2018 were as follows:
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Reclassification out of accumulated other comprehensive income (loss) | Reclassifications out of accumulated other comprehensive income (loss) for the nine months ended June 30, 2018 were as follows:
(1) Amounts in parentheses indicate decreases to income/loss. Reclassifications out of accumulated other comprehensive income for the nine months ended June 30, 2017 were as follows:
(1) Amounts in parentheses indicate decreases to profit/loss. |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Operations) (Details) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Jun. 20, 2018
USD ($)
$ / shares
shares
|
Jun. 30, 2018
branch
$ / shares
shares
|
Aug. 18, 2017
branch
|
|
Business Acquisition [Line Items] | |||
Number of offices | branch | 22 | ||
Number of additional offices | branch | 7 | ||
Preferred stock, shares issued (in shares) | shares | 500,000 | 500,000 | |
Dividend rate, percentage | 8.00% | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Sale of stock, price per share (in dollars per share) | $ 130.00 | ||
Preferred stock, liquidation preference (in dollars per share) | $ 130 | ||
Proceeds from issuance of convertible preferred stock | $ | $ 65.0 | ||
United Bancorporation | |||
Business Acquisition [Line Items] | |||
Percentage of stock acquired | 100.00% | ||
Cash paid by buyer | $ | $ 50.7 |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Loan and Tax) (Details) $ in Thousands |
1 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
segment
|
Sep. 30, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income recognized debt past due (less than days) | 90 days | ||
Loans charged off past due more than days | 180 days | ||
Closed end loan charged off past due more than days | 120 days | ||
Number of reportable segments | segment | 1 | ||
Unrealized loss on securities, provisional income tax expense | $ 275 | ||
Change in tax rate, deferred tax asset, provisional income tax expense | $ 275 | ||
Commercial Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 90 days | ||
Closed End Consumer Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 120 days | ||
Real Estate and Open Ended Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income discontinued over delinquent days | 180 days | ||
Scenario, Forecast | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Federal statutory income tax rate | 24.50% | ||
Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reclassification of certain deferred tax effects | $ 137 |
INVESTMENT SECURITIES (Summary of Amortized Cost, Estimated Fair Value and Related Unrealized Gains and Losses on Securities Available For Sale) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | $ 122,702 | $ 96,328 |
Gross Unrealized Gains | 168 | 512 |
Gross Unrealized Losses | 3,168 | 957 |
Estimated Fair Value | 119,702 | 95,883 |
U.S. government agency obligations | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 37,067 | 18,454 |
Gross Unrealized Gains | 7 | 35 |
Gross Unrealized Losses | 1,088 | 448 |
Estimated Fair Value | 35,986 | 18,041 |
Obligations of states and political subdivisions | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 35,518 | 35,656 |
Gross Unrealized Gains | 18 | 270 |
Gross Unrealized Losses | 558 | 131 |
Estimated Fair Value | 34,978 | 35,795 |
Mortgage-backed securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 44,653 | 36,661 |
Gross Unrealized Gains | 24 | 124 |
Gross Unrealized Losses | 1,214 | 311 |
Estimated Fair Value | 43,463 | 36,474 |
Agency securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 104 | 147 |
Gross Unrealized Gains | 119 | 83 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 223 | 230 |
Corporate debt securities | ||
Summary of amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale | ||
Amortized Cost | 5,360 | 5,410 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 308 | 67 |
Estimated Fair Value | $ 5,052 | $ 5,343 |
INVESTMENT SECURITIES (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 4,809 | $ 5,453 |
Gross Unrealized Gains | 44 | 153 |
Gross Unrealized Losses | 26 | 1 |
Estimated Fair Value | 4,827 | 5,605 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,308 | 1,311 |
Gross Unrealized Gains | 0 | 17 |
Gross Unrealized Losses | 1 | 0 |
Estimated Fair Value | 1,307 | 1,328 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,501 | 4,142 |
Gross Unrealized Gains | 44 | 136 |
Gross Unrealized Losses | 25 | 1 |
Estimated Fair Value | $ 3,520 | $ 4,277 |
INVESTMENT SECURITIES (Narrative) (Details) |
Jun. 30, 2018
USD ($)
|
---|---|
Federal Reserve Bank | |
Debt Securities, Available-for-sale [Line Items] | |
Borrowings outstanding under line of credit facility | $ 0 |
Asset Pledged as Collateral | Line of Credit | U.S. government agency obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Securities pledged as collateral | 2,191,000 |
Asset Pledged as Collateral | Specific Municipal Deposits | U.S. government agency obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Securities pledged as collateral | 5,490,000 |
Asset Pledged as Collateral | Specific Municipal Deposits | Mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Securities pledged as collateral | 22,779,000 |
Asset Pledged as Collateral | Specific Municipal Deposits | Certificates of Deposits | |
Debt Securities, Available-for-sale [Line Items] | |
Securities pledged as collateral | $ 746,000 |
INVESTMENT SECURITIES (Available-for-sale Securities, Maturity) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 1,663 | $ 160 |
Due after one year through five years | 17,493 | 15,008 |
Due after five years through ten years | 41,136 | 30,586 |
Due after ten years | 17,653 | 13,766 |
Single maturity date | 77,945 | 59,520 |
Amortized Cost | 122,702 | 96,328 |
Securities without contractual maturities | 104 | 147 |
Estimated Fair Value | ||
Due in one year or less | 1,657 | 160 |
Due after one year through five years | 17,331 | 15,056 |
Due after five years through ten years | 39,826 | 30,330 |
Due after ten years | 17,202 | 13,633 |
Single maturity date | 76,016 | 59,179 |
Estimated Fair Value | 119,702 | 95,883 |
Securities without contractual maturities | 223 | 230 |
Mortgage backed securities | ||
Amortized Cost | ||
Amortized Cost | 44,653 | 36,661 |
Estimated Fair Value | ||
Estimated Fair Value | $ 43,463 | $ 36,474 |
INVESTMENT SECURITIES (Held-to-maturity Securities, Maturity) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Amortized Cost | ||
Due after one year through five years | $ 1,308 | $ 1,311 |
Mortgage backed securities | 3,501 | 4,142 |
Total held to maturity securities | 4,809 | 5,453 |
Estimated Fair Value | ||
Due after one year through five years | 1,307 | 1,328 |
Mortgage backed securities | 3,520 | 4,277 |
Total held to maturity securities | $ 4,827 | $ 5,605 |
INVESTMENT SECURITIES (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Fair Value | ||
Less than 12 Months | $ 87,197 | $ 35,976 |
12 Months or More | 22,832 | 20,386 |
Total | 110,029 | 56,362 |
Unrealized Loss | ||
Less than 12 Months | 1,809 | 411 |
12 Months or More | 1,359 | 546 |
Total | 3,168 | 957 |
U.S. government agency obligations | ||
Fair Value | ||
Less than 12 Months | 25,149 | 8,296 |
12 Months or More | 10,281 | 6,932 |
Total | 35,430 | 15,228 |
Unrealized Loss | ||
Less than 12 Months | 358 | 186 |
12 Months or More | 730 | 262 |
Total | 1,088 | 448 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 Months | 26,592 | 8,170 |
12 Months or More | 3,666 | 3,701 |
Total | 30,258 | 11,871 |
Unrealized Loss | ||
Less than 12 Months | 390 | 62 |
12 Months or More | 168 | 69 |
Total | 558 | 131 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 30,404 | 14,167 |
12 Months or More | 8,885 | 9,753 |
Total | 39,289 | 23,920 |
Unrealized Loss | ||
Less than 12 Months | 753 | 96 |
12 Months or More | 461 | 215 |
Total | 1,214 | 311 |
Corporate debt securities | ||
Fair Value | ||
Less than 12 Months | 5,052 | 5,343 |
12 Months or More | 0 | 0 |
Total | 5,052 | 5,343 |
Unrealized Loss | ||
Less than 12 Months | 308 | 67 |
12 Months or More | 0 | 0 |
Total | $ 308 | $ 67 |
INVESTMENT SECURITIES (Schedule of Held to Maturity Securities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Fair Value | ||
Less than 12 Months | $ 3,541 | $ 406 |
12 Months or More | 0 | 0 |
Total | 3,541 | 406 |
Unrealized Loss | ||
Less than 12 Months | 26 | 1 |
12 Months or More | 0 | 0 |
Total | 26 | 1 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 Months | 1,132 | 0 |
12 Months or More | 0 | 0 |
Total | 1,132 | 0 |
Unrealized Loss | ||
Less than 12 Months | 1 | 0 |
12 Months or More | 0 | 0 |
Total | 1 | 0 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 2,409 | 406 |
12 Months or More | 0 | 0 |
Total | 2,409 | 406 |
Unrealized Loss | ||
Less than 12 Months | 25 | 1 |
12 Months or More | 0 | 0 |
Total | $ 25 | $ 1 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Narrative) (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
TDR
|
Sep. 30, 2017
USD ($)
TDR
|
Aug. 31, 2017
USD ($)
|
May 31, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Oct. 31, 2012
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 764,749,000 | $ 736,613,000 | ||||
Percentage of loan amounts deposited into cash reserve account | 3.00% | |||||
Cash reserve account balance | $ 1,000,000 | |||||
Board of director limit on purchase of loans under loan purchase agreement | 50,000,000 | |||||
Cash reserve maximum allowed balance | 622,000 | |||||
Impaired financing receivable, recorded investment | 23,233,000 | 24,359,000 | ||||
Recorded Investment | $ 8,210,000 | $ 5,851,000 | ||||
Number of delinquent TDR | TDR | 7 | 3 | ||||
Recorded investment in delinquent TDR | $ 1,117,000 | $ 504,000 | ||||
TDR Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Past due period & nonaccruing | 90+ days | |||||
Past due, minimum period | 90 days | |||||
Recorded Investment | $ 8,210,000 | 5,851,000 | ||||
Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 14,004,000 | 16,056,000 | ||||
Recorded Investment | 5,397,000 | 6,473,000 | ||||
Performing loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR Loans and Leases Receivable Net Reported Amount | $ 5,762,000 | 5,230,000 | ||||
Consumer and Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Rate earned on all new loan originations of purchased consumer loans | 4.20% | |||||
Central Bank in Rice Lake and Barron | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 16,363,000 | |||||
Community Bank of Northern Wisconsin | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 111,740,000 | |||||
Wells Federal | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 189,077,000 | |||||
Commercial/Agriculture Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Impaired financing receivable, recorded investment | $ 11,866,000 | 12,626,000 | ||||
Commercial/Agriculture Real Estate | Performing loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR Loans and Leases Receivable Net Reported Amount | $ 1,663,000 | 1,890,000 | ||||
Commercial/Agriculture Real Estate | Agricultural real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan-to-value ratio, percentage | 75.00% | |||||
Loans receivable | $ 70,881,000 | 68,002,000 | ||||
Commercial/Agriculture Real Estate | Agricultural real estate | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 3,817,000 | 5,672,000 | ||||
Consumer Non-real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Impaired financing receivable, recorded investment | 396,000 | 702,000 | ||||
Consumer Non-real Estate | Performing loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR Loans and Leases Receivable Net Reported Amount | 122,000 | 167,000 | ||||
Consumer Non-real Estate | Purchased indirect paper | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 19,801,000 | 29,555,000 | ||||
Consumer Non-real Estate | Purchased indirect paper | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 0 | 0 | ||||
Originated Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 548,906,000 | 472,593,000 | ||||
Recorded Investment | 8,210,000 | 5,851,000 | ||||
Originated Loans | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 3,714,000 | 3,536,000 | ||||
Originated Loans | Commercial/Agriculture Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded Investment | 2,203,000 | 1,890,000 | ||||
Originated Loans | Commercial/Agriculture Real Estate | Agricultural real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 23,739,000 | 10,628,000 | ||||
Originated Loans | Commercial/Agriculture Real Estate | Agricultural real estate | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 500,000 | 80,000 | ||||
Originated Loans | Consumer Non-real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded Investment | 139,000 | 195,000 | ||||
Originated Loans | Consumer Non-real Estate | Purchased indirect paper | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 19,801,000 | 29,555,000 | ||||
Originated Loans | Consumer Non-real Estate | Purchased indirect paper | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 0 | 0 | ||||
Acquired Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 264,020,000 | |||||
Recorded Investment | 9,626,000 | 12,035,000 | ||||
Acquired Loans | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 10,290,000 | 12,520,000 | ||||
Recorded Investment | 2,908,000 | 2,387,000 | ||||
Acquired Loans | Commercial/Agriculture Real Estate | Agricultural real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 47,142,000 | 57,374,000 | ||||
Acquired Loans | Commercial/Agriculture Real Estate | Agricultural real estate | Substandard | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 3,318,000 | $ 5,592,000 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Summary of Originated and Acquired Loans by Type and Risk) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | $ 764,749 | $ 736,613 | ||
Unearned net deferred fees and costs and loans in process | 693 | 1,471 | ||
Unamortized discount on acquired loans | (4,355) | (5,089) | ||
Allowance for loan losses | (6,458) | (5,942) | $ (5,756) | $ (6,068) |
Loans receivable, net | 754,629 | 727,053 | ||
Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 745,671 | 715,942 | ||
Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 5,074 | 4,615 | ||
Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 14,004 | 16,056 | ||
Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Originated Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 548,906 | 472,593 | ||
Allowance for loan losses | (6,084) | (5,942) | (5,756) | |
Originated Loans | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 543,502 | 467,795 | ||
Originated Loans | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,690 | 1,262 | ||
Originated Loans | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,714 | 3,536 | ||
Originated Loans | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Originated Loans | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Acquired Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 264,020 | |||
Allowance for loan losses | (374) | 0 | ||
Acquired Loans | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 202,169 | 248,147 | ||
Acquired Loans | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,384 | 3,353 | ||
Acquired Loans | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 10,290 | 12,520 | ||
Acquired Loans | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Acquired Loans | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (1,223) | (1,461) | (2,039) | |
Residential Real Estate | One to four family | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 202,356 | 229,563 | ||
Residential Real Estate | One to four family | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 198,072 | 225,769 | ||
Residential Real Estate | One to four family | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 873 | ||
Residential Real Estate | One to four family | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 4,284 | 2,921 | ||
Residential Real Estate | One to four family | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | One to four family | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | HELOC loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,237 | 18,071 | ||
Residential Real Estate | HELOC loans | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,237 | 18,071 | ||
Residential Real Estate | HELOC loans | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | HELOC loans | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | HELOC loans | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | HELOC loans | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (1,075) | (1,458) | (1,461) | |
Residential Real Estate | Originated Loans | One to four family | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 122,028 | 132,380 | ||
Residential Real Estate | Originated Loans | One to four family | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 119,680 | 130,837 | ||
Residential Real Estate | Originated Loans | One to four family | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | One to four family | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 2,348 | 1,543 | ||
Residential Real Estate | Originated Loans | One to four family | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | One to four family | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | HELOC loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,237 | 18,071 | ||
Residential Real Estate | Originated Loans | HELOC loans | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,237 | 18,071 | ||
Residential Real Estate | Originated Loans | HELOC loans | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | HELOC loans | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | HELOC loans | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Originated Loans | HELOC loans | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Acquired Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (148) | 0 | ||
Residential Real Estate | Acquired Loans | One to four family | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 80,328 | 97,183 | ||
Residential Real Estate | Acquired Loans | One to four family | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 78,392 | 94,932 | ||
Residential Real Estate | Acquired Loans | One to four family | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 873 | ||
Residential Real Estate | Acquired Loans | One to four family | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,936 | 1,378 | ||
Residential Real Estate | Acquired Loans | One to four family | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Residential Real Estate | Acquired Loans | One to four family | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (3,161) | (2,344) | (1,883) | |
Commercial/Agriculture Real Estate | Commercial real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 208,526 | 159,962 | ||
Commercial/Agriculture Real Estate | Commercial real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 203,486 | 154,748 | ||
Commercial/Agriculture Real Estate | Commercial real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 2,246 | 1,863 | ||
Commercial/Agriculture Real Estate | Commercial real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 2,794 | 3,351 | ||
Commercial/Agriculture Real Estate | Commercial real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Commercial real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 70,881 | 68,002 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 65,630 | 61,567 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,433 | 763 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,817 | 5,672 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Agricultural real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 45,707 | 26,228 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 45,388 | 25,857 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 319 | 371 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Multi-family real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Construction and land development | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,258 | 19,708 | ||
Commercial/Agriculture Real Estate | Construction and land development | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 14,760 | 19,138 | ||
Commercial/Agriculture Real Estate | Construction and land development | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Construction and land development | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 498 | 570 | ||
Commercial/Agriculture Real Estate | Construction and land development | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Construction and land development | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (3,031) | (2,523) | (2,344) | |
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 156,760 | 97,155 | ||
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 156,560 | 96,953 | ||
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 200 | 49 | ||
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 153 | ||
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Commercial real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 23,739 | 10,628 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 22,709 | 10,051 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 530 | 497 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 500 | 80 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Agricultural real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 42,360 | 24,486 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 42,230 | 24,338 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 130 | 148 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Multi-family real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 11,212 | 12,399 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 11,212 | 12,399 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Originated Loans | Construction and land development | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (130) | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 51,766 | 62,807 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 46,926 | 57,795 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 2,046 | 1,814 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 2,794 | 3,198 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Commercial real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 47,142 | 57,374 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 42,921 | 51,516 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 903 | 266 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,318 | 5,592 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Agricultural real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,347 | 1,742 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,158 | 1,519 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 189 | 223 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Multi-family real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 4,046 | 7,309 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,548 | 6,739 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 498 | 570 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agriculture Real Estate | Acquired Loans | Construction and land development | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (750) | (1,079) | (1,466) | |
Consumer Non-real Estate | Originated indirect paper | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 66,791 | 85,732 | ||
Consumer Non-real Estate | Originated indirect paper | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 66,649 | 85,330 | ||
Consumer Non-real Estate | Originated indirect paper | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 8 | ||
Consumer Non-real Estate | Originated indirect paper | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 142 | 394 | ||
Consumer Non-real Estate | Originated indirect paper | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated indirect paper | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Purchased indirect paper | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 19,801 | 29,555 | ||
Consumer Non-real Estate | Purchased indirect paper | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 19,801 | 29,555 | ||
Consumer Non-real Estate | Purchased indirect paper | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Purchased indirect paper | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Purchased indirect paper | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Purchased indirect paper | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Other Consumer | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 19,063 | 20,668 | ||
Consumer Non-real Estate | Other Consumer | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 18,929 | 20,491 | ||
Consumer Non-real Estate | Other Consumer | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Other Consumer | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 134 | 177 | ||
Consumer Non-real Estate | Other Consumer | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Other Consumer | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (687) | (936) | (1,079) | |
Consumer Non-real Estate | Originated Loans | Originated indirect paper | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 66,791 | 85,732 | ||
Consumer Non-real Estate | Originated Loans | Originated indirect paper | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 66,649 | 85,330 | ||
Consumer Non-real Estate | Originated Loans | Originated indirect paper | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 8 | ||
Consumer Non-real Estate | Originated Loans | Originated indirect paper | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 142 | 394 | ||
Consumer Non-real Estate | Originated Loans | Originated indirect paper | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Originated indirect paper | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 19,801 | 29,555 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 19,801 | 29,555 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Purchased indirect paper | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,549 | 14,496 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,444 | 14,361 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 105 | 135 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Originated Loans | Other Consumer | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Acquired Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (63) | 0 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,514 | 6,172 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 3,485 | 6,130 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 29 | 42 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Consumer Non-real Estate | Acquired Loans | Other Consumer | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (1,045) | (732) | $ (652) | |
Commercial/Agricultural Non-real Estate | Commercial non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 74,763 | 55,251 | ||
Commercial/Agricultural Non-real Estate | Commercial non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 73,167 | 53,359 | ||
Commercial/Agricultural Non-real Estate | Commercial non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 253 | 372 | ||
Commercial/Agricultural Non-real Estate | Commercial non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,342 | 1,520 | ||
Commercial/Agricultural Non-real Estate | Commercial non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Commercial non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 26,366 | 23,873 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 24,552 | 22,057 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,142 | 736 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 672 | 1,080 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (1,012) | (897) | (732) | |
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 58,637 | 35,198 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 58,620 | 35,102 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 17 | 96 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Commercial non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 16,792 | 12,493 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 15,360 | 10,798 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 960 | 708 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 472 | 987 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Originated Loans | Agricultural non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | (33) | $ 0 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 16,126 | 20,053 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 14,547 | 18,257 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 253 | 372 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 1,326 | 1,424 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Commercial non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 9,574 | 11,380 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | Pass | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 9,192 | 11,259 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | Special Mention | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 182 | 28 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | Substandard | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 200 | 93 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | Doubtful | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | 0 | 0 | ||
Commercial/Agricultural Non-real Estate | Acquired Loans | Agricultural non-real estate | Unlikely to be Collected Financing Receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gross loans | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Changes in the ALL by Loan Type) (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
Allowance for Loan Losses: | |||
Beginning balance | $ 5,942 | $ 6,068 | |
Charge-offs | (462) | ||
Recoveries | 150 | ||
Provision | 850 | 0 | |
Allowance allocation adjustment | 0 | ||
Ending balance | 6,458 | 5,756 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 241 | 241 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 6,217 | 5,515 | |
Loans Receivable: | |||
Total loans | 764,749 | 519,403 | $ 732,995 |
Ending balance: individually evaluated for impairment | 18,765 | 5,646 | |
Ending balance: collectively evaluated for impairment | 745,984 | 513,757 | |
Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 5,942 | ||
Charge-offs | (349) | ||
Recoveries | 151 | ||
Provision | 620 | ||
Allowance allocation adjustment | (280) | ||
Ending balance | 6,084 | 5,756 | |
Loans Receivable: | |||
Total loans | 548,906 | 436,215 | |
Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 9,626 | 2,969 | |
Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | (145) | ||
Recoveries | 9 | ||
Provision | 230 | ||
Allowance allocation adjustment | 280 | ||
Ending balance | 374 | 0 | |
Loans Receivable: | |||
Total loans | 206,217 | 80,219 | |
Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | 374 | 0 | |
Residential Real Estate | |||
Allowance for Loan Losses: | |||
Beginning balance | 2,039 | ||
Charge-offs | (159) | ||
Recoveries | 8 | ||
Provision | 0 | ||
Allowance allocation adjustment | (427) | ||
Ending balance | 1,223 | 1,461 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 191 | 203 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 1,032 | 1,258 | |
Loans Receivable: | |||
Total loans | 217,593 | 156,735 | 247,634 |
Ending balance: individually evaluated for impairment | 7,668 | 4,170 | |
Ending balance: collectively evaluated for impairment | 209,925 | 152,565 | |
Residential Real Estate | Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 1,458 | ||
Charge-offs | (78) | ||
Recoveries | 46 | ||
Provision | 0 | ||
Allowance allocation adjustment | (351) | ||
Ending balance | 1,075 | 1,461 | |
Loans Receivable: | |||
Total loans | 137,265 | 136,527 | |
Residential Real Estate | Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 456 | 247 | |
Residential Real Estate | Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | (42) | ||
Recoveries | 6 | ||
Provision | 70 | ||
Allowance allocation adjustment | 114 | ||
Ending balance | 148 | 0 | |
Loans Receivable: | |||
Total loans | 79,872 | 19,961 | |
Residential Real Estate | Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | 148 | 0 | |
Commercial/Agriculture Real Estate | |||
Allowance for Loan Losses: | |||
Beginning balance | 1,883 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 0 | ||
Allowance allocation adjustment | 461 | ||
Ending balance | 3,161 | 2,344 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 0 | 0 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 3,161 | 2,344 | |
Loans Receivable: | |||
Total loans | 340,372 | 171,306 | 273,900 |
Ending balance: individually evaluated for impairment | 8,228 | 266 | |
Ending balance: collectively evaluated for impairment | 332,144 | 171,040 | |
Commercial/Agriculture Real Estate | Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 2,523 | ||
Charge-offs | (1) | ||
Recoveries | 0 | ||
Provision | 455 | ||
Allowance allocation adjustment | 54 | ||
Ending balance | 3,031 | 2,344 | |
Loans Receivable: | |||
Total loans | 234,071 | 123,183 | |
Commercial/Agriculture Real Estate | Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 7,558 | 1,813 | |
Commercial/Agriculture Real Estate | Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | (73) | ||
Recoveries | 0 | ||
Provision | 120 | ||
Allowance allocation adjustment | 83 | ||
Ending balance | 130 | 0 | |
Loans Receivable: | |||
Total loans | 98,743 | 46,310 | |
Commercial/Agriculture Real Estate | Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | 130 | 0 | |
Consumer Non-real Estate | |||
Allowance for Loan Losses: | |||
Beginning balance | 1,466 | ||
Charge-offs | (294) | ||
Recoveries | 141 | ||
Provision | 0 | ||
Allowance allocation adjustment | (234) | ||
Ending balance | 750 | 1,079 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 25 | 32 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 725 | 1,047 | |
Loans Receivable: | |||
Total loans | 105,655 | 142,399 | 132,337 |
Ending balance: individually evaluated for impairment | 397 | 551 | |
Ending balance: collectively evaluated for impairment | 105,258 | 141,848 | |
Consumer Non-real Estate | Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 936 | ||
Charge-offs | (265) | ||
Recoveries | 93 | ||
Provision | 35 | ||
Allowance allocation adjustment | (112) | ||
Ending balance | 687 | 1,079 | |
Loans Receivable: | |||
Total loans | 102,141 | 141,984 | |
Consumer Non-real Estate | Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 0 | 4 | |
Consumer Non-real Estate | Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | (30) | ||
Recoveries | 3 | ||
Provision | 25 | ||
Allowance allocation adjustment | 65 | ||
Ending balance | 63 | 0 | |
Loans Receivable: | |||
Total loans | 3,514 | 411 | |
Consumer Non-real Estate | Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | 63 | 0 | |
Commercial/Agricultural Non-real Estate | |||
Allowance for Loan Losses: | |||
Beginning balance | 652 | ||
Charge-offs | (9) | ||
Recoveries | 1 | ||
Provision | 0 | ||
Allowance allocation adjustment | 88 | ||
Ending balance | 1,045 | 732 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 25 | 6 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 1,020 | 726 | |
Loans Receivable: | |||
Total loans | 101,129 | 48,963 | $ 79,124 |
Ending balance: individually evaluated for impairment | 2,472 | 659 | |
Ending balance: collectively evaluated for impairment | 98,657 | 48,304 | |
Commercial/Agricultural Non-real Estate | Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 897 | ||
Charge-offs | (5) | ||
Recoveries | 12 | ||
Provision | 130 | ||
Allowance allocation adjustment | (22) | ||
Ending balance | 1,012 | 732 | |
Loans Receivable: | |||
Total loans | 75,429 | 34,521 | |
Commercial/Agricultural Non-real Estate | Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 1,612 | 905 | |
Commercial/Agricultural Non-real Estate | Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 15 | ||
Allowance allocation adjustment | 18 | ||
Ending balance | 33 | 0 | |
Loans Receivable: | |||
Total loans | 24,088 | 13,537 | |
Commercial/Agricultural Non-real Estate | Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | 33 | 0 | |
Unallocated | |||
Allowance for Loan Losses: | |||
Beginning balance | 28 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 0 | ||
Allowance allocation adjustment | 112 | ||
Ending balance | 279 | 140 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Amount of allowance for loan losses arising from loans individually evaluated for impairment | 0 | 0 | |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | 279 | 140 | |
Loans Receivable: | |||
Total loans | 0 | 0 | |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 0 | 0 | |
Unallocated | Originated Loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 128 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 0 | ||
Allowance allocation adjustment | 151 | ||
Ending balance | 279 | 140 | |
Loans Receivable: | |||
Total loans | 0 | 0 | |
Unallocated | Purchased credit impaired loans | |||
Allowance for Loan Losses: | |||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 0 | 0 | |
Unallocated | Other acquired loans | |||
Allowance for Loan Losses: | |||
Beginning balance | 0 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 0 | ||
Allowance allocation adjustment | 0 | ||
Ending balance | 0 | 0 | |
Loans Receivable: | |||
Total loans | 0 | 0 | |
Unallocated | Acquired Loans | |||
Allowance for Loan Losses: | |||
Ending balance | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Loans Receivable by Loan Type) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Loans receivable | |||
Total loans | $ 764,749 | $ 732,995 | $ 519,403 |
Performing loans | |||
Loans receivable | |||
TDR loans | 5,762 | 5,230 | |
Loans other | 751,650 | 719,725 | |
Total loans | 757,412 | 724,955 | |
Nonperforming loans | |||
Loans receivable | |||
TDR loans | 2,448 | 621 | |
Loans other | 4,889 | 7,419 | |
Total loans | 7,337 | 8,040 | |
Residential Real Estate | |||
Loans receivable | |||
Total loans | 217,593 | 247,634 | 156,735 |
Residential Real Estate | Performing loans | |||
Loans receivable | |||
TDR loans | 3,481 | 3,085 | |
Loans other | 211,871 | 242,198 | |
Total loans | 215,352 | 245,283 | |
Residential Real Estate | Nonperforming loans | |||
Loans receivable | |||
TDR loans | 508 | 593 | |
Loans other | 1,733 | 1,758 | |
Total loans | 2,241 | 2,351 | |
Commercial/Agriculture Real Estate | |||
Loans receivable | |||
Total loans | 340,372 | 273,900 | 171,306 |
Commercial/Agriculture Real Estate | Performing loans | |||
Loans receivable | |||
TDR loans | 1,663 | 1,890 | |
Loans other | 335,972 | 268,619 | |
Total loans | 337,635 | 270,509 | |
Commercial/Agriculture Real Estate | Nonperforming loans | |||
Loans receivable | |||
TDR loans | 540 | 0 | |
Loans other | 2,197 | 3,391 | |
Total loans | 2,737 | 3,391 | |
Consumer Non-real Estate | |||
Loans receivable | |||
Total loans | 105,655 | 132,337 | 142,399 |
Consumer Non-real Estate | Performing loans | |||
Loans receivable | |||
TDR loans | 122 | 167 | |
Loans other | 105,305 | 131,695 | |
Total loans | 105,427 | 131,862 | |
Consumer Non-real Estate | Nonperforming loans | |||
Loans receivable | |||
TDR loans | 17 | 28 | |
Loans other | 211 | 447 | |
Total loans | 228 | 475 | |
Commercial/Agricultural Non-real Estate | |||
Loans receivable | |||
Total loans | 101,129 | 79,124 | $ 48,963 |
Commercial/Agricultural Non-real Estate | Performing loans | |||
Loans receivable | |||
TDR loans | 496 | 88 | |
Loans other | 98,502 | 77,213 | |
Total loans | 98,998 | 77,301 | |
Commercial/Agricultural Non-real Estate | Nonperforming loans | |||
Loans receivable | |||
TDR loans | 1,383 | 0 | |
Loans other | 748 | 1,823 | |
Total loans | $ 2,131 | $ 1,823 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Aging Analysis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | $ 15,398 | $ 11,003 |
Current | 749,351 | 725,610 |
Total Loans | 764,749 | 736,613 |
Nonaccrual Loans | 6,627 | 7,452 |
Recorded Investment 89 days and Accruing | 710 | 589 |
30-59 Days Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 8,053 | 5,429 |
60-89 Days Past Due | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 2,428 | 982 |
Greater Than 89 Days | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 4,917 | 4,592 |
Residential Real Estate | One to four family | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 5,224 | 4,432 |
Current | 197,132 | 225,131 |
Total Loans | 202,356 | 229,563 |
Nonaccrual Loans | 1,681 | 2,200 |
Recorded Investment 89 days and Accruing | 560 | 151 |
Residential Real Estate | HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 404 | 250 |
Current | 14,833 | 17,821 |
Total Loans | 15,237 | 18,071 |
Nonaccrual Loans | 0 | 0 |
Recorded Investment 89 days and Accruing | 0 | 0 |
Residential Real Estate | 30-59 Days Past Due | One to four family | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 2,966 | 2,811 |
Residential Real Estate | 30-59 Days Past Due | HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 404 | 250 |
Residential Real Estate | 60-89 Days Past Due | One to four family | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 906 | 393 |
Residential Real Estate | 60-89 Days Past Due | HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 0 |
Residential Real Estate | Greater Than 89 Days | One to four family | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 1,352 | 1,228 |
Residential Real Estate | Greater Than 89 Days | HELOC loans | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 0 |
Commercial/Agriculture Real Estate | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 1,062 | 684 |
Current | 207,464 | 159,278 |
Total Loans | 208,526 | 159,962 |
Nonaccrual Loans | 400 | 572 |
Recorded Investment 89 days and Accruing | 0 | 0 |
Commercial/Agriculture Real Estate | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 4,134 | 2,462 |
Current | 66,747 | 65,540 |
Total Loans | 70,881 | 68,002 |
Nonaccrual Loans | 2,210 | 2,723 |
Recorded Investment 89 days and Accruing | 0 | 96 |
Commercial/Agriculture Real Estate | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 130 | 0 |
Current | 45,577 | 26,228 |
Total Loans | 45,707 | 26,228 |
Nonaccrual Loans | 130 | 0 |
Recorded Investment 89 days and Accruing | 0 | 0 |
Commercial/Agriculture Real Estate | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 305 | 0 |
Current | 14,953 | 19,708 |
Total Loans | 15,258 | 19,708 |
Nonaccrual Loans | 123 | 0 |
Recorded Investment 89 days and Accruing | 0 | 0 |
Commercial/Agriculture Real Estate | 30-59 Days Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 865 | 332 |
Commercial/Agriculture Real Estate | 30-59 Days Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 975 | 57 |
Commercial/Agriculture Real Estate | 30-59 Days Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 0 |
Commercial/Agriculture Real Estate | 30-59 Days Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 220 | 0 |
Commercial/Agriculture Real Estate | 60-89 Days Past Due | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 70 |
Commercial/Agriculture Real Estate | 60-89 Days Past Due | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 949 | 0 |
Commercial/Agriculture Real Estate | 60-89 Days Past Due | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 0 |
Commercial/Agriculture Real Estate | 60-89 Days Past Due | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 0 | 0 |
Commercial/Agriculture Real Estate | Greater Than 89 Days | Commercial real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 197 | 282 |
Commercial/Agriculture Real Estate | Greater Than 89 Days | Agricultural real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 2,210 | 2,405 |
Commercial/Agriculture Real Estate | Greater Than 89 Days | Multi-family real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 130 | 0 |
Commercial/Agriculture Real Estate | Greater Than 89 Days | Construction and land development | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 85 | 0 |
Consumer Non-real Estate | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 216 | 661 |
Current | 66,575 | 85,071 |
Total Loans | 66,791 | 85,732 |
Nonaccrual Loans | 45 | 74 |
Recorded Investment 89 days and Accruing | 5 | 80 |
Consumer Non-real Estate | Purchased indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 751 | 1,127 |
Current | 19,050 | 28,428 |
Total Loans | 19,801 | 29,555 |
Nonaccrual Loans | 0 | 0 |
Recorded Investment 89 days and Accruing | 135 | 221 |
Consumer Non-real Estate | Other Consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 244 | 256 |
Current | 18,819 | 20,412 |
Total Loans | 19,063 | 20,668 |
Nonaccrual Loans | 33 | 76 |
Recorded Investment 89 days and Accruing | 10 | 25 |
Consumer Non-real Estate | 30-59 Days Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 169 | 426 |
Consumer Non-real Estate | 30-59 Days Past Due | Purchased indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 410 | 601 |
Consumer Non-real Estate | 30-59 Days Past Due | Other Consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 198 | 120 |
Consumer Non-real Estate | 60-89 Days Past Due | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 20 | 112 |
Consumer Non-real Estate | 60-89 Days Past Due | Purchased indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 205 | 305 |
Consumer Non-real Estate | 60-89 Days Past Due | Other Consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 28 | 79 |
Consumer Non-real Estate | Greater Than 89 Days | Originated indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 27 | 123 |
Consumer Non-real Estate | Greater Than 89 Days | Purchased indirect paper | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 136 | 221 |
Consumer Non-real Estate | Greater Than 89 Days | Other Consumer | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 18 | 57 |
Commercial/Agricultural Non-real Estate | Commercial non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 1,407 | 254 |
Current | 73,356 | 54,997 |
Total Loans | 74,763 | 55,251 |
Nonaccrual Loans | 1,257 | 1,618 |
Recorded Investment 89 days and Accruing | 0 | 0 |
Commercial/Agricultural Non-real Estate | Agricultural non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 1,521 | 877 |
Current | 24,845 | 22,996 |
Total Loans | 26,366 | 23,873 |
Nonaccrual Loans | 748 | 189 |
Recorded Investment 89 days and Accruing | 0 | 16 |
Commercial/Agricultural Non-real Estate | 30-59 Days Past Due | Commercial non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 1,061 | 75 |
Commercial/Agricultural Non-real Estate | 30-59 Days Past Due | Agricultural non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 785 | 757 |
Commercial/Agricultural Non-real Estate | 60-89 Days Past Due | Commercial non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 165 | 23 |
Commercial/Agricultural Non-real Estate | 60-89 Days Past Due | Agricultural non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 155 | 0 |
Commercial/Agricultural Non-real Estate | Greater Than 89 Days | Commercial non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | 181 | 156 |
Commercial/Agricultural Non-real Estate | Greater Than 89 Days | Agricultural non-real estate | ||
Aging analysis of the Bank's real estate and consumer loans | ||
Total Past Due | $ 581 | $ 120 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Impaired Loans) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Bank impaired loans | ||
With no related allowance recorded, Recorded investment | $ 21,368 | $ 22,869 |
With an allowance recorded, Recorded investment | 1,865 | 1,490 |
Recorded investment, Total | 23,233 | 24,359 |
With no related allowance recorded, unpaid principal balance | 21,368 | 22,869 |
With an allowance recorded, unpaid principal balance | 1,865 | 1,490 |
Unpaid principal balance, Total | 23,233 | 24,359 |
With an allowance recorded, Related allowance | 242 | 302 |
With no related allowance recorded, Average recorded investment | 22,118 | 10,868 |
With an allowance recorded, Average recorded investment | 1,678 | 1,952 |
Average recorded investment, Total | 23,796 | 12,820 |
With no related allowance recorded, Interest income recognized | 666 | 38 |
With an allowance recorded, Interest income recognized | 38 | 2 |
Interest income recognized, Total | 704 | 40 |
Residential Real Estate | ||
Bank impaired loans | ||
With no related allowance recorded, Recorded investment | 6,220 | 4,015 |
With an allowance recorded, Recorded investment | 1,685 | 1,198 |
Recorded investment, Total | 7,905 | 5,213 |
With no related allowance recorded, unpaid principal balance | 6,220 | 4,015 |
With an allowance recorded, unpaid principal balance | 1,685 | 1,198 |
Unpaid principal balance, Total | 7,905 | 5,213 |
With an allowance recorded, Related allowance | 192 | 214 |
With no related allowance recorded, Average recorded investment | 5,117 | 3,440 |
With an allowance recorded, Average recorded investment | 1,442 | 1,545 |
Average recorded investment, Total | 6,559 | 4,985 |
With no related allowance recorded, Interest income recognized | 242 | 9 |
With an allowance recorded, Interest income recognized | 38 | 2 |
Interest income recognized, Total | 280 | 11 |
Commercial/Agriculture Real Estate | ||
Bank impaired loans | ||
With no related allowance recorded, Recorded investment | 11,866 | 12,626 |
With an allowance recorded, Recorded investment | 0 | 0 |
Recorded investment, Total | 11,866 | 12,626 |
With no related allowance recorded, unpaid principal balance | 11,866 | 12,626 |
With an allowance recorded, unpaid principal balance | 0 | 0 |
Unpaid principal balance, Total | 11,866 | 12,626 |
With an allowance recorded, Related allowance | 0 | 0 |
With no related allowance recorded, Average recorded investment | 12,246 | 4,460 |
With an allowance recorded, Average recorded investment | 0 | 0 |
Average recorded investment, Total | 12,246 | 4,460 |
With no related allowance recorded, Interest income recognized | 312 | 2 |
With an allowance recorded, Interest income recognized | 0 | 0 |
Interest income recognized, Total | 312 | 2 |
Consumer Non-real Estate | ||
Bank impaired loans | ||
With no related allowance recorded, Recorded investment | 315 | 433 |
With an allowance recorded, Recorded investment | 81 | 269 |
Recorded investment, Total | 396 | 702 |
With no related allowance recorded, unpaid principal balance | 315 | 433 |
With an allowance recorded, unpaid principal balance | 81 | 269 |
Unpaid principal balance, Total | 396 | 702 |
With an allowance recorded, Related allowance | 25 | 65 |
With no related allowance recorded, Average recorded investment | 374 | 340 |
With an allowance recorded, Average recorded investment | 175 | 306 |
Average recorded investment, Total | 549 | 646 |
With no related allowance recorded, Interest income recognized | 28 | 16 |
With an allowance recorded, Interest income recognized | 0 | 0 |
Interest income recognized, Total | 28 | 16 |
Commercial/Agricultural Non-real Estate | ||
Bank impaired loans | ||
With no related allowance recorded, Recorded investment | 2,967 | 5,795 |
With an allowance recorded, Recorded investment | 99 | 23 |
Recorded investment, Total | 3,066 | 5,818 |
With no related allowance recorded, unpaid principal balance | 2,967 | 5,795 |
With an allowance recorded, unpaid principal balance | 99 | 23 |
Unpaid principal balance, Total | 3,066 | 5,818 |
With an allowance recorded, Related allowance | 25 | 23 |
With no related allowance recorded, Average recorded investment | 4,381 | 2,628 |
With an allowance recorded, Average recorded investment | 61 | 101 |
Average recorded investment, Total | 4,442 | 2,729 |
With no related allowance recorded, Interest income recognized | 84 | 11 |
With an allowance recorded, Interest income recognized | 0 | 0 |
Interest income recognized, Total | $ 84 | $ 11 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Summary of TDR Loans) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Receivables [Abstract] | ||
Accrual status | $ 5,860 | $ 5,230 |
Non-accrual status | 2,350 | 621 |
Total | $ 8,210 | $ 5,851 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (TDR Loan Modifications) (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018
USD ($)
Contract
|
Sep. 30, 2017
USD ($)
Contract
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of Contracts | Contract | 26 | 23 |
Pre-Modification Outstanding Recorded Investment | $ 4,369 | $ 2,930 |
Post-Modification Outstanding Recorded Investment | 4,369 | 2,930 |
Specific Reserve | 0 | 24 |
Modified Rate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Modified Payment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 494 | 0 |
Modified Underwriting | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 1,958 | 2,505 |
Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | $ 1,917 | $ 425 |
Residential Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of Contracts | Contract | 8 | 9 |
Pre-Modification Outstanding Recorded Investment | $ 759 | $ 915 |
Post-Modification Outstanding Recorded Investment | 759 | 915 |
Specific Reserve | 0 | 24 |
Residential Real Estate | Modified Rate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Residential Real Estate | Modified Payment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Residential Real Estate | Modified Underwriting | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 710 | 679 |
Residential Real Estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | $ 49 | $ 236 |
Commercial/Agriculture Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of Contracts | Contract | 9 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 1,737 | $ 1,890 |
Post-Modification Outstanding Recorded Investment | 1,737 | 1,890 |
Specific Reserve | 0 | 0 |
Commercial/Agriculture Real Estate | Modified Rate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Commercial/Agriculture Real Estate | Modified Payment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 410 | 0 |
Commercial/Agriculture Real Estate | Modified Underwriting | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 759 | 1,822 |
Commercial/Agriculture Real Estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | $ 568 | $ 68 |
Consumer Non-real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of Contracts | Contract | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 3 | $ 32 |
Post-Modification Outstanding Recorded Investment | 3 | 32 |
Specific Reserve | 0 | 0 |
Consumer Non-real Estate | Modified Rate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Consumer Non-real Estate | Modified Payment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Consumer Non-real Estate | Modified Underwriting | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 3 | 4 |
Consumer Non-real Estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | $ 0 | $ 28 |
Commercial/Agricultural Non-real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of Contracts | Contract | 8 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 1,870 | $ 93 |
Post-Modification Outstanding Recorded Investment | 1,870 | 93 |
Specific Reserve | 0 | 0 |
Commercial/Agricultural Non-real Estate | Modified Rate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 0 | 0 |
Commercial/Agricultural Non-real Estate | Modified Payment | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 84 | 0 |
Commercial/Agricultural Non-real Estate | Modified Underwriting | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | 486 | 0 |
Commercial/Agricultural Non-real Estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Modifications | $ 1,300 | $ 93 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Summary of Loans by Loan Segment) (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018
USD ($)
Contract
|
Sep. 30, 2017
USD ($)
Contract
|
|
Troubled Debt Restructuring | ||
Number of Modifications | 26 | 23 |
Recorded Investment | $ | $ 8,210 | $ 5,851 |
Residential Real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 8 | 9 |
Commercial/Agriculture Real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 9 | 8 |
Consumer Non-real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 1 | 4 |
Commercial/Agricultural Non-real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 8 | 2 |
Originated Loans | ||
Troubled Debt Restructuring | ||
Number of Modifications | 78 | 62 |
Recorded Investment | $ | $ 8,210 | $ 5,851 |
Originated Loans | Residential Real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 35 | 32 |
Recorded Investment | $ | $ 3,989 | $ 3,678 |
Originated Loans | Commercial/Agriculture Real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 16 | 8 |
Recorded Investment | $ | $ 2,203 | $ 1,890 |
Originated Loans | Consumer Non-real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 18 | 20 |
Recorded Investment | $ | $ 139 | $ 195 |
Originated Loans | Commercial/Agricultural Non-real Estate | ||
Troubled Debt Restructuring | ||
Number of Modifications | 9 | 2 |
Recorded Investment | $ | $ 1,879 | $ 88 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Total Troubled Debt Restructurings) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2018
Contract
|
Jun. 30, 2018
USD ($)
Contract
|
Sep. 30, 2017
USD ($)
Contract
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Modifications | Contract | 2 | 14 | 7 |
Recorded Investment | $ | $ 2,349 | $ 621 | |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Modifications | Contract | 3 | 4 | |
Recorded Investment | $ | $ 409 | $ 593 | |
Commercial/Agriculture Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Modifications | Contract | 3 | 0 | |
Recorded Investment | $ | $ 665 | $ 0 | |
Consumer Non-real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Modifications | Contract | 3 | 3 | |
Recorded Investment | $ | $ 17 | $ 28 | |
Commercial/Agricultural Non-real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Modifications | Contract | 5 | 0 | |
Recorded Investment | $ | $ 1,258 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Acquired Loans Outstanding Balance and the Carrying Amount) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
Jun. 30, 2017 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | $ 764,749 | $ 732,995 | $ 519,403 |
Loans receivable | 764,749 | 736,613 | |
Purchased credit impaired loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | 9,626 | $ 2,969 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | $ 264,020 | ||
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 211,488 | ||
Acquired Loans | Purchased credit impaired loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | 9,626 | ||
Loans receivable | 7,738 | ||
Acquired Loans | Non-PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | 206,217 | ||
Loans receivable | 203,750 | ||
Acquired Loans | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | 215,843 | ||
Loans receivable | $ 215,843 |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Acquired Loans Changes in Accretable Yield) (Details) - Acquired Loans $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 2,893 |
Acquisitions | 0 |
Reduction due to unexpected early payoffs | 0 |
Reclass from non-accretable difference | 0 |
Disposals/transfers | 0 |
Accretion | (426) |
Balance at end of period | $ 2,467 |
MORTGAGE SERVICING RIGHTS (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Deposits | $ 744,536 | $ 742,504 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deposits | 2,610 | 3,208 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Residential mortgage loans serviced for others | $ 281,076 | $ 282,392 |
MORTGAGE SERVICING RIGHTS (Servicing Asset at Amortized Cost) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | $ 1,886 | |
Net book value at end of period | 1,841 | $ 1,886 |
Mortgage servicing rights | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | 1,886 | 0 |
MSR asset acquired | 0 | 1,909 |
MSRs capitalized | 206 | 13 |
Amortization during the period | (251) | (36) |
Valuation allowance at end of period | 0 | 0 |
Net book value at end of period | 1,841 | 1,886 |
Fair value of MSR asset at end of period | 2,269 | 1,951 |
Residential mortgage loans serviced for others | $ 281,076 | $ 282,392 |
Net book value of MSR asset to loans serviced for others | 0.65% | 0.67% |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Summary of Federal Home Loan Bank Advances) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Advances from FHLB: | ||
Fixed rates | $ 29,000 | $ 90,000 |
Overnight borrowings | 29,000 | 0 |
Total FHLB advances | 58,000 | 90,000 |
Less: unamortized debt issuance costs | (344) | (375) |
Other borrowings | 29,059 | 30,319 |
TOTALS | 87,059 | 120,319 |
Senior notes: | ||
Advances from FHLB: | ||
Long-term debt | 14,403 | 15,694 |
Senior notes: | Variable rate due in May 2021 | ||
Advances from FHLB: | ||
Long-term debt | 9,778 | 10,694 |
Senior notes: | Variable rate due in August 2022 | ||
Advances from FHLB: | ||
Long-term debt | 4,625 | 5,000 |
Subordinated notes: | ||
Advances from FHLB: | ||
Long-term debt | 15,000 | 15,000 |
Subordinated notes: | 6.75% due August 2027, variable rate commencing August 2022 | ||
Advances from FHLB: | ||
Long-term debt | $ 5,000 | 5,000 |
Interest rate | 6.75% | |
Subordinated notes: | 6.75% due August 2027, variable rate commencing August 2022 | ||
Advances from FHLB: | ||
Long-term debt | $ 10,000 | $ 10,000 |
Interest rate | 6.75% |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Narrative) (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Aug. 17, 2017 |
Jun. 30, 2018 |
Sep. 30, 2017 |
Aug. 10, 2017 |
May 16, 2016 |
|
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Overnight borrowings | $ 29,000,000 | $ 0 | |||
Letters of credit outstanding, amount | 45,005,000 | 30,233,000 | |||
Banks available and unused portion of borrowing agreement | 208,160,000 | 92,959,000 | |||
Maximum month-end amounts outstanding | 109,500,000 | 90,000,000 | |||
Debt issuance costs | 380,000 | ||||
Unamortized debt issuance costs | 344,000 | $ 375,000 | |||
Federal Home Loan Bank Advances | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Overnight borrowings | $ 29,000,000 | ||||
Variable interest rate overnight borrowings | 2.12% | ||||
Federal home loan bank, collateral | $ 311,179,000 | ||||
Term Loan | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Debt instrument, face amount | $ 11,000,000 | ||||
Debt instrument, periodic payment | $ 306,000 | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||
Debt instrument, term | 10 years | ||||
Senior notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Weighted average interest rate | 5.07% | 4.01% | |||
London Interbank Offered Rate (LIBOR) | Senior notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Basis spread on variable rate | 2.70% | ||||
Minimum | Senior notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Interest rate | 4.01% | 3.44% | |||
Maximum | Senior notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Interest rate | 5.07% | 4.01% | |||
6.75% due August 2027, variable rate commencing August 2022 | Subordinated notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Interest rate | 6.75% | ||||
Debt instrument, face amount | $ 15,000,000 | ||||
6.75% due August 2027, variable rate commencing August 2022 | London Interbank Offered Rate (LIBOR) | Subordinated notes | |||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||
Basis spread on variable rate | 4.90% |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Maturities of FHLB Advances and Other) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Banking and Thrift [Abstract] | ||
2018 | $ 58,000 | |
2019 | 0 | |
2020 | 0 | |
2021 | 9,778 | |
2022 | 4,594 | |
Thereafter | 14,687 | |
TOTALS | $ 87,059 | $ 120,319 |
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
Mar. 27, 2018 |
Sep. 30, 2016 |
Feb. 29, 2008 |
Feb. 28, 2005 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted (in shares) | 8,000 | 23,000 | |||||||
Outstanding in period (in shares) | 121,670 | 121,670 | 146,606 | 140,706 | |||||
2004 Recognition and Retention Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant of awards company's common stock (in shares) | 113,910 | ||||||||
2004 Stock Option and Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant of awards company's common stock (in shares) | 284,778 | ||||||||
Options granted (in shares) | 284,778 | ||||||||
2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted (in shares) | 181,000 | ||||||||
Number of shares reserved and available for issuance under the 2008 Equity Incentive Plan (in shares) | 597,605 | ||||||||
Prospective issuance of shares of the Company's common stock under the 2008 Equity Incentive Plan (in shares) | 426,860 | ||||||||
Aggregate stock which may be granted for restricted stock and units under the 2008 Equity Incentive Plan (in shares) | 170,745 | ||||||||
2004 Recognition and Retention Plan and 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiry period of unexercised nonqualified incentive stock options | 15 years | ||||||||
Expiry period of unexercised incentive stock options | 10 years | ||||||||
Compensation expense related to awards | $ 94 | $ 15 | $ 177 | $ 31 | |||||
2018 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares reserved and available for issuance under the 2008 Equity Incentive Plan (in shares) | 350,000 | ||||||||
2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense related to awards | $ 5 | $ 8 | $ 6 | $ 15 | |||||
Restricted shares | 2004 Recognition and Retention Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Non-Option instruments, granted (in shares) | 113,910 | ||||||||
Restricted shares | 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Non-Option instruments, granted (in shares) | 89,183 | ||||||||
Restricted shares | 2018 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding in period (in shares) | 13,707 | 13,707 | |||||||
Shares granted (in shares) | 13,707 | 13,707 | |||||||
Employee Stock Option | 2004 Recognition and Retention Plan and 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of shares, in years | 5 years | ||||||||
Employee Stock Option | 2018 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding in period (in shares) | 0 | 0 | |||||||
Minimum | Restricted shares | 2004 Recognition and Retention Plan and 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of shares, in years | 2 years | ||||||||
Maximum | Restricted shares | 2004 Recognition and Retention Plan and 2008 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of shares, in years | 5 years |
STOCK-BASED COMPENSATION (Restricted Stock Award) (Details) - Restricted shares - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Number of Shares | ||
Restricted shares, Unvested and outstanding at beginning of period year (in shares) | 42,378 | 23,159 |
Granted (in shares) | 33,230 | 25,569 |
Vested (in shares) | (6,579) | (6,350) |
Forfeited (in shares) | (11,847) | 0 |
Restricted shares, Unvested and outstanding at end of period year (in shares) | 57,182 | 42,378 |
Weighted Average Grant Price | ||
Beginning of period, weighted average, grant price (in usd per share) | $ 12.07 | $ 9.59 |
Granted, weighted average, grant price (in usd per share) | 13.77 | 13.53 |
Vested, weighted average, grant price (in usd per share) | 12.73 | 8.88 |
Forfeited, weighted average, grant price (in usd per share) | 10.45 | 0.00 |
End of period, weighted average, grant price (in usd per share) | $ 13.32 | $ 12.07 |
STOCK-BASED COMPENSATION (Common Stock Options Awards) (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Option Shares | ||
Outstanding at beginning of period (in shares) | 146,606 | 140,706 |
Granted (in shares) | 8,000 | 23,000 |
Exercised (in shares) | (6,042) | (14,100) |
Forfeited or expired (in shares) | (26,894) | (3,000) |
Outstanding at end of period (in shares) | 121,670 | 146,606 |
Exercisable at end of period (in shares) | 56,770 | 57,712 |
Fully vested and expected to vest (in shares) | 121,670 | 146,606 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Outstanding at beginning of period (usd per share) | $ 9.45 | $ 8.67 |
Weighted Average Exercise Price, Granted (usd per share) | 13.60 | 13.75 |
Weighted Average Exercise Price, Exercised (usd per share) | 8.11 | 8.27 |
Weighted Average Exercise Price, Forfeited or expired (usd per share) | 0.00 | 11.00 |
Weighted Average Exercise Price, Outstanding at end of period (usd per share) | 9.82 | 9.45 |
Weighted Average Exercise Price, Exercisable at end of year (usd per share) | 8.04 | 7.70 |
Weighted Average Exercise Price, Fully vested and expected to vest (usd per share) | $ 9.82 | $ 9.45 |
Weighted Average Remaining Contractual Term, Outstanding at end of period | 5 years 9 months 11 days | 6 years 8 months 5 days |
Weighted Average Remaining Contractual Term, Exercisable at end of period | 3 years 4 months 17 days | 3 years 10 months 21 days |
Weighted Average Remaining Contractual Term, Fully vested and expected to vest | 5 years 9 months 11 days | 6 years 8 months 5 days |
Aggregate intrinsic value, exercisable at end of period | $ 387 | $ 361 |
Aggregate intrinsic value, fully vested and expected to vest at end of period | $ 526 | $ 659 |
STOCK-BASED COMPENSATION (2004 Stock Option and Incentive Plan and 2008 Equity Incentive Plan Information) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised | $ 33 | $ 69 | |
Cash received from options exercised | 50 | $ 67 | 114 |
Tax benefit realized from options exercised | $ 0 | $ 0 |
STOCK-BASED COMPENSATION (Assumptions for Stock Option Expense) (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Dividend yield | 1.18% | 1.16% |
Risk-free interest rate | 2.40% | 2.20% |
Weighted average expected life (years) | 10 years | 10 years |
Expected volatility | 2.30% | 2.40% |
PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jun. 20, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Equity [Abstract] | |||
Preferred stock, shares issued (in shares) | 500,000 | 500,000 | |
Dividend rate, percentage | 8.00% | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Sale of stock, price per share (in dollars per share) | $ 130.00 | ||
Proceeds from issuance of convertible preferred stock | $ 65,000 | ||
Proceeds from sale of preferred stock, net of costs | 61,289 | $ 61,289 | $ 0 |
Payments of stock issuance costs | $ 3,711 |
FAIR VALUE ACCOUNTING (Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | $ 119,702 | $ 95,883 |
U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 35,986 | 18,041 |
Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 43,463 | 36,474 |
Agency Securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 223 | 230 |
Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 5,052 | 5,343 |
Fair Value, Measurements, Recurring | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 119,702 | 95,883 |
Fair Value, Measurements, Recurring | U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 35,986 | 18,041 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 34,978 | 35,795 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 43,463 | 36,474 |
Fair Value, Measurements, Recurring | Agency Securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 223 | 230 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 5,052 | 5,343 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Obligations of states and political subdivisions | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Agency Securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 119,702 | 95,883 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 35,986 | 18,041 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 34,978 | 35,795 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 43,463 | 36,474 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency Securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 223 | 230 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 5,052 | 5,343 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency obligations | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Agency Securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Assets Measured on a Recurring Basis | ||
Estimated Fair Value | $ 0 | $ 0 |
FAIR VALUE ACCOUNTING (Assets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Assets Measured on a Nonrecurring Basis | ||
Foreclosed and repossessed assets, net | $ 5,392 | $ 6,017 |
Impaired loans with allocated allowances | 1,865 | 1,490 |
Total | 9,526 | 9,458 |
Mortgage servicing rights | ||
Assets Measured on a Nonrecurring Basis | ||
Mortgage servicing rights | 2,269 | 1,951 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Assets Measured on a Nonrecurring Basis | ||
Foreclosed and repossessed assets, net | 0 | 0 |
Impaired loans with allocated allowances | 0 | 0 |
Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Mortgage servicing rights | ||
Assets Measured on a Nonrecurring Basis | ||
Mortgage servicing rights | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets Measured on a Nonrecurring Basis | ||
Foreclosed and repossessed assets, net | 0 | 0 |
Impaired loans with allocated allowances | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Assets Measured on a Nonrecurring Basis | ||
Mortgage servicing rights | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets Measured on a Nonrecurring Basis | ||
Foreclosed and repossessed assets, net | 5,392 | 6,017 |
Impaired loans with allocated allowances | 1,865 | 1,490 |
Total | 9,526 | 9,458 |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Assets Measured on a Nonrecurring Basis | ||
Mortgage servicing rights | $ 2,269 | $ 1,951 |
FAIR VALUE ACCOUNTING (Level 3 Fair Value Inputs) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding balance | $ 764,749 | $ 732,995 | $ 519,403 |
Fair Value, Inputs, Level 3 | Foreclosed and repossessed assets, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding balance | $ 5,392 | $ 6,017 | |
Fair Value, Inputs, Level 3 | Foreclosed and repossessed assets, net | Estimated costs to sell | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated costs to sell | 0.10 | 0.10 | |
Fair Value, Inputs, Level 3 | Foreclosed and repossessed assets, net | Estimated costs to sell | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated costs to sell | 0.15 | 0.15 | |
Fair Value, Inputs, Level 3 | Impaired loans with allocated allowances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Outstanding balance | $ 1,865 | $ 1,490 | |
Fair Value, Inputs, Level 3 | Impaired loans with allocated allowances | Estimated costs to sell | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated costs to sell | 0.10 | 0.10 | |
Fair Value, Inputs, Level 3 | Impaired loans with allocated allowances | Estimated costs to sell | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated costs to sell | 0.15 | 0.15 | |
Fair Value, Inputs, Level 3 | Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage servicing rights | $ 2,269 | $ 1,951 | |
Fair Value, Inputs, Level 3 | Mortgage servicing rights | Discounted rates | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discounted rates | 0.095 | 0.095 | |
Fair Value, Inputs, Level 3 | Mortgage servicing rights | Discounted rates | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discounted rates | 0.125 | 0.125 |
FAIR VALUE ACCOUNTING (Carrying Amount and Estimated Fair Value) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Financial assets: | ||
Securities available for sale AFS | $ 119,702 | $ 95,883 |
Securities held to maturity HTM | 4,827 | 5,605 |
Carrying Amount | ||
Financial assets: | ||
Securities available for sale AFS | 119,702 | 95,883 |
Carrying Amount | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 27,731 | 41,677 |
Non-marketable equity securities, at cost | 6,862 | 7,292 |
Accrued interest receivable | 3,306 | 3,291 |
Financial liabilities: | ||
Other borrowings | 29,059 | 30,319 |
Accrued interest payable | 336 | 227 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Other interest-bearing deposits | 8,160 | 8,148 |
Securities held to maturity HTM | 4,809 | 5,453 |
Loans held for sale | 1,778 | 2,334 |
Financial liabilities: | ||
FHLB advances | 58,000 | 90,000 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans receivable, net | 754,629 | 727,053 |
Mortgage servicing rights | 1,841 | 1,886 |
Financial liabilities: | ||
Deposits | 744,536 | 742,504 |
Estimated Fair Value | ||
Financial assets: | ||
Securities available for sale AFS | 119,702 | 95,883 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 27,731 | 41,677 |
Non-marketable equity securities, at cost | 6,862 | 7,292 |
Accrued interest receivable | 3,306 | 3,291 |
Financial liabilities: | ||
Other borrowings | 29,059 | 30,319 |
Accrued interest payable | 336 | 227 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Other interest-bearing deposits | 8,048 | 8,143 |
Securities held to maturity HTM | 4,827 | 5,605 |
Loans held for sale | 1,778 | 2,334 |
Financial liabilities: | ||
FHLB advances | 57,999 | 89,998 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans receivable, net | 749,079 | 737,119 |
Mortgage servicing rights | 2,269 | 1,951 |
Financial liabilities: | ||
Deposits | $ 748,555 | $ 746,025 |
OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income) (Loss) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
|
Net-of-Tax Amount | |||
Less: reclassification adjustment for (losses) gains included in net income | $ (16) | $ 17 | |
Other Comprehensive Income (Loss), Net of Tax | (1,908) | $ (881) | |
Unrealized Gains (Losses) on Securities | |||
Before-Tax Amount | |||
Net unrealized (losses) gains arising during the period | (2,397) | (2,140) | |
Less: reclassification adjustment for (losses) gains included in net income | (21) | 29 | |
Less: reclassification of certain deferred tax effects | (137) | 0 | |
Other comprehensive loss | (2,555) | (2,111) | |
Tax Expense | |||
Net unrealized (losses) gains arising during the period | 642 | 856 | |
Less: reclassification adjustment for (losses) gains included in net income | 5 | (12) | |
Other comprehensive loss | 647 | 844 | |
Net-of-Tax Amount | |||
Net unrealized (losses) gains arising during the period | (1,755) | (1,284) | |
Less: reclassification adjustment for (losses) gains included in net income | (16) | 17 | |
Less: reclassification of certain deferred tax effects | (137) | 0 | |
Other Comprehensive Income (Loss), Net of Tax | $ (1,908) | $ (1,267) |
OTHER COMPREHENSIVE INCOME (LOSS) (Changes in the Accumulated Balances) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Changes in the accumulated balances for each component of other comprehensive income | ||
Current year-to-date other comprehensive loss, net of tax | $ (1,908) | $ (881) |
Unrealized Gains (Losses) on Securities | ||
Changes in the accumulated balances for each component of other comprehensive income | ||
Beginning balance | (267) | 614 |
Current year-to-date other comprehensive loss, net of tax | (1,908) | (881) |
Ending balance | (2,175) | (267) |
Defined Benefit Plans | ||
Changes in the accumulated balances for each component of other comprehensive income | ||
Beginning balance | 0 | 0 |
Current year-to-date other comprehensive loss, net of tax | 0 | 0 |
Ending balance | 0 | 0 |
Other Accumulated Comprehensive Income (Loss) | ||
Changes in the accumulated balances for each component of other comprehensive income | ||
Beginning balance | (267) | 614 |
Ending balance | $ (2,175) | $ (267) |
OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ (220) | $ (604) | $ (1,590) | $ (1,530) |
Total reclassifications for the period | (16) | 17 | ||
Unrealized Gains (Losses) on Securities | Amounts Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gain on sale of available for sale securities | 0 | 29 | ||
Total fair value adjustments and other-than-temporary impairment | (21) | |||
Gain (loss) on investments | (21) | |||
Provision for income taxes | $ 5 | $ (12) |
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