REGULATORY MATTERS

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

REGULATORY MATTERS

(27) REGULATORY MATTERS

In accordance with the Plan of Charter Conversion adopted by the Bank’s board of directors on May 21, 2014, the Bank operates as an Indiana-charted commercial bank and became a member the Federal Reserve System following its conversion from a federally-chartered savings bank effective December 19, 2014. As a result of the Bank’s charter conversion, the Bank is subject to supervision and regulation by the Indiana Department of Financial Institutions and the Federal Reserve Bank of St. Louis. Also as a result of the Bank’s charter conversion, the Company converted to a bank holding company and simultaneously elected financial holding company status effective December 19, 2014. The Company is supervised and regulated by the Board of Governors of the Federal Reserve System through the Federal Reserve Bank of St. Louis.

The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). Management believes that the Company and Bank met all capital adequacy requirements to which they are subject as of September 30, 2016 and 2015.

As of September 30, 2016, the most recent notification from the FRB categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier 1 risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. No amount was deducted from capital for interest-rate risk in either year.

											Minimum
											To Be Well
						Minimum					Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes:					Action Provisions:
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of September 30, 2016:
Total capital (to risk-weighted assets):
Consolidated	$	72,227		11.82	%	$	48,874		8.00	%		N/A		N/A
Bank		69,056		11.33			48,748		8.00		$	60,934		10.00	%
Tier I capital (to risk-weighted assets):
Consolidated	$	65,105		10.66	%	$	36,655		6.00	%		N/A		N/A
Bank		61,934		10.16			36,561		6.00		$	48,748		8.00	%
Common equity tier I capital (to risk-weighted assets):
Consolidated	$	65,105		10.66	%	$	27,491		4.50	%		N/A		N/A
Bank		61,934		10.16			27,420		4.50		$	39,607		6.50	%
Tier I capital (to average adjusted total assets):
Consolidated	$	65,105		8.43	%	$	30,881		4.00	%		N/A		N/A
Bank		61,934		8.09			30,621		4.00		$	38,277		5.00	%
As of September 30, 2015:
Total capital (to risk-weighted assets):
Consolidated	$	85,531		16.21	%	$	42,221		8.00	%		N/A		N/A
Bank		69,075		13.13			42,084		8.00		$	52,605		10.00	%
Tier I capital (to risk-weighted assets):
Consolidated	$	78,955		14.96	%	$	31,666		6.00	%		N/A		N/A
Bank		62,499		11.88			31,563		6.00		$	42,084		8.00	%
Common equity tier I capital (to risk-weighted assets):
Consolidated	$	78,955		14.96	%	$	23,749		4.50	%		N/A		N/A
Bank		62,499		11.88			23,672		4.50		$	34,193		6.50	%
Tier I capital (to average adjusted total assets):
Consolidated	$	78,955		11.01	%	$	28,691		4.00	%		N/A		N/A
Bank		62,499		8.67			28,834		4.00		$	36,043		5.00	%