Loans Receivable (Tables)

6 Months Ended

Mar. 31, 2015

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans not covered by loss share agreements are summarized as follows:

	March 31, 2015		September 30, 2014
Loans not covered by loss sharing agreements:
1-4 family residential real estate	$	172,131,248	$	152,810,501
Commercial real estate	340,171,680		300,556,023
Commercial	29,431,806		24,759,682
Real estate construction	70,758,469		63,485,411
Consumer and other	4,559,832		4,959,103
Loans receivable, net of undisbursed proceeds of loans in process	617,053,035		546,570,720
Less:
Unamortized loan origination fees, net	1,471,715		1,364,853
Allowance for loan losses	8,463,104		8,473,373
Total loans not covered, net	$	607,118,216	$	536,732,494

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

The carrying amount of covered loans at March 31, 2015 and September 30, 2014, consisted of impaired loans at acquisition date and all other acquired loans and are presented in the following tables.

	March 31, 2015
	Impaired Loans at Acquisition		All Other Acquired Loans		Total Covered Loans
Loans covered by loss sharing agreements:
1-4 family residential real estate	$	3,141,212	$	5,256,205	$	8,397,417
Commercial real estate	27,761,821		19,617,148		47,378,969
Commercial	1,281,174		650,067		1,931,241
Real estate construction	—		—		—
Consumer and other	—		72,570		72,570
Loans receivable, gross	32,184,207		25,595,990		57,780,197
Less:
Nonaccretable difference	3,161,562		249,204		3,410,766
Allowance for covered loan losses	—		946,314		946,314
Accretable discount	2,765,732		1,443,969		4,209,701
Discount on acquired performing loans	—		112,361		112,361
Unamortized loan origination fees, net	—		7,149		7,149
Total loans covered, net	$	26,256,913	$	22,836,993	$	49,093,906

	September 30, 2014
	Impaired Loans at Acquisition		All Other Acquired Loans		Total Covered Loans
Loans covered by loss sharing agreements:
1-4 family residential real estate	$	4,841,705	$	6,800,846	$	11,642,551
Commercial real estate	33,053,228		34,354,816		67,408,044
Commercial	1,871,879		1,800,989		3,672,868
Real estate construction	—		—		—
Consumer and other	1,418		177,228		178,646
Loans receivable, gross	39,768,230		43,133,879		82,902,109
Less:
Nonaccretable difference	5,993,661		273,024		6,266,685
Allowance for covered loan losses	—		997,524		997,524
Accretable discount	3,073,198		2,770,499		5,843,697
Discount on acquired performing loans	—		142,731		142,731
Unamortized loan origination fees, net	—		17,253		17,253
Total loans covered, net	$	30,701,371	$	38,932,848	$	69,634,219

Accretable Discount on Acquired Loans

The following table documents changes in the accretable discount on acquired credit impaired loans during the six months ended March 31, 2015 and the year ended September 30, 2014:

	Impaired Loans at Acquisition			All Other Acquired Loans			Total Covered Loans
Balance, September 30, 2013	$	3,508,430		$	1,164,941		$	4,673,371
Loan accretion	(3,979,390		)	(2,579,144		)	(6,558,534		)
Transfer from nonaccretable difference	3,544,158			4,184,702			7,728,860
Balance, September 30, 2014	3,073,198			2,770,499			5,843,697
Loan accretion	(1,507,466		)	(1,391,669		)	(2,899,135		)
Transfer from nonaccretable difference	1,200,000			65,139			1,265,139
Balance, March 31, 2015	$	2,765,732		$	1,443,969		$	4,209,701

FDIC Indemnification Asset Roll Forward

The following table documents changes in the carrying value of the FDIC receivable for loss sharing agreements relating to covered loans and other real estate owned during the six months ended March 31, 2015 and the year ended September 30, 2014:

	Six Months Ended   March 31, 2015			Year Ended September 30, 2014
Balance, beginning of period	$	10,531,809		$	29,941,862
Payments received from FDIC	(1,900,158		)	(10,954,707		)
Accretion of fair value adjustment	74,519			347,347
Impairment	—			(521,637		)
Amortization	(1,790,514		)	(3,507,017		)
Recovery of previous loss reimbursements	(1,675,654		)	(6,762,304		)
Reduction in previous loss estimates	—			(1,549,967		)
Provision for estimated losses on covered assets recognized in noninterest expense	789,792			1,426,762
External expenses qualifying under loss sharing agreements	719,565			2,111,470
Balance, end of period	$	6,749,359		$	10,531,809

Past Due Financing Receivables

Nonaccrual and Past Due Loans. Nonaccrual loans not covered by loss sharing, segregated by class of loans were as follows:

	March 31, 2015 (1)		September 30, 2014 (1)
1-4 family residential real estate	$	1,465,996	$	982,087
Commercial real estate	1,869,036		2,369,520
Commercial	75,225		156,474
Real estate construction	—		—
Consumer and other	—		—
Total	$	3,410,257	$	3,508,081

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(1) Acquired Neighborhood Community Bank and McIntosh Commercial Bank FAS ASC 310-30 loans that are no longer covered under their respective commercial loss sharing agreements with the FDIC in the amount of $3.6 million at March 31, 2015 are excluded. Additionally, acquired Neighborhood Community Bank FAS ASC 310-30 loans that are no longer covered under the commercial loss sharing agreement with the FDIC in the amount of $1.3 million at September 30, 2014 are excluded. Due to the recognition of accretion income established at the time of acquisition, the FAS ASC 310-30 loans that are greater than 90 days delinquent are regarded as accruing loans.

Impaired Financing Receivables

Impaired loans not covered by loss sharing, segregated by class of loans were as follows:

March 31, 2015

							Three Months Ended   March 31, 2015				Six Months Ended   March 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
With no related allowance recorded:
1-4 family residential real estate	$	1,517,435	$	2,009,879	$	—	$	1,534,541	$	548	$	1,550,559	$	3,999
Commercial real estate	7,881,126		9,116,027		—		7,900,032		87,259		7,928,631		175,555
Commercial	75,225		96,305		—		81,043		—		84,807		—
Total:	$	9,473,786	$	11,222,211	$	—	$	9,515,616	$	87,807	$	9,563,997	$	179,554

There were no recorded allowances for impaired loans not covered by loss sharing at March 31, 2015. The recorded investment in accruing troubled debt restructured loans at March 31, 2015 totaled $6,063,530 and is included in the impaired loan table above.

September 30, 2014

							Year Ended September 30, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment in Impaired Loans		Interest Income Recognized
With no related allowance recorded:
1-4 family residential real estate	$	1,550,777	$	2,077,942	$	—	$	1,737,505	$	31,656
Commercial real estate	8,687,088		10,510,893		—		9,196,747		373,711
Commercial	156,474		205,625		—		188,458		—
Total:	$	10,394,339	$	12,794,460	$	—	$	11,122,710	$	405,367

There were no recorded allowances for impaired loans not covered by loss sharing at September 30, 2014. The recorded investment in accruing troubled debt restructured loans at September 30, 2014 totaled $6,154,420 and is included in the impaired loan table above.

Financing Receivable Credit Quality Indicators

The following table presents the risk grades of the loan portfolio not covered by loss sharing, segregated by class of loans:

March 31, 2015

	1-4 family residential real estate		Commercial real estate		Commercial		Real estate construction		Consumer and other		Total
Pass (1-4)	$	169,257,202	$	311,500,448	$	28,911,206	$	70,758,469	$	4,526,366	$	584,953,691
Special Mention (5)	750,553		2,055,331		13,459		—		—		2,819,343
Substandard (6)	2,123,493		26,615,901		507,141		—		33,466		29,280,001
Doubtful (7)	—		—		—		—		—		—
Loss (8)	—		—		—		—		—		—
Total not covered loans	$	172,131,248	$	340,171,680	$	29,431,806	$	70,758,469	$	4,559,832	$	617,053,035

September 30, 2014

	1-4 family residential real estate		Commercial real estate		Commercial		Real estate construction		Consumer and other		Total
Pass (1-4)	$	151,661,479	$	273,587,373	$	23,205,880	$	63,485,411	$	4,954,661	$	516,894,804
Special Mention (5)	—		3,325,324		91,000		—		—		3,416,324
Substandard (6)	1,149,022		23,643,326		1,462,802		—		4,442		26,259,592
Doubtful (7)	—		—		—		—		—		—
Loss (8)	—		—		—		—		—		—
Total not covered loans	$	152,810,501	$	300,556,023	$	24,759,682	$	63,485,411	$	4,959,103	$	546,570,720

The following table presents the risk grades, ignoring grade enhancement provided by the FDIC loss sharing, of the loan portfolio covered by loss sharing agreements, segregated by class of loans at March 31, 2015 and September 30, 2014. Numerical risk ratings 5-8 constitute classified assets for regulatory reporting; however, regulatory authorities consider the FDIC loss sharing percentage of either 80% or 95%, as applicable, as a reduction of the regulatory classified balance for covered loans. With respect to classified assets covered by loss sharing agreements, numerical risk ratings 5-8, for regulatory reporting purposes are done under FDIC guidance reporting the Bank’s non-reimbursable amount of the book balance of the loans as classified. The remaining reimbursable portion is classified as pass, numerical risk ratings 1-4.

March 31, 2015

	1-4 family residential real estate		Commercial real estate		Commercial		Real estate construction		Consumer and other		Total
Numerical risk rating (1-4)	$	6,086,210	$	23,739,341	$	1,483,044	$	—	$	41,725	$	31,350,320
Numerical risk rating (5)	63,123		6,403,968		—		—		—		6,467,091
Numerical risk rating (6)	1,305,264		13,968,848		331,594		—		—		15,605,706
Numerical risk rating (7)	—		—		—		—		—		—
Numerical risk rating (8)	—		—		—		—		—		—
Total covered loans (1)	$	7,454,597	$	44,112,157	$	1,814,638	$	—	$	41,725	$	53,423,117

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(1) Covered loan balances are net of nonaccretable differences and allowances for covered loan losses and have not been reduced by $4,322,062 of accretable discounts and discounts on acquired performing loans.

September 30, 2014

	1-4 family residential real estate		Commercial real estate		Commercial		Real estate construction		Consumer and other		Total
Numerical risk rating (1-4)	$	7,392,585	$	34,017,713	$	1,982,382	$	—	$	74,392	$	43,467,072
Numerical risk rating (5)	693,038		8,411,973		448,957		—		—		9,553,968
Numerical risk rating (6)	2,591,713		18,869,901		1,081,540		—		73,706		22,616,860
Numerical risk rating (7)	—		—		—		—		—		—
Numerical risk rating (8)	—		—		—		—		—		—
Total covered loans (1)	$	10,677,336	$	61,299,587	$	3,512,879	$	—	$	148,098	$	75,637,900

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(1) Covered loan balances are net of nonaccretable differences and allowances for covered loan losses and have not been reduced by $5,986,428 of accretable discounts and discounts on acquired performing loans.

Allowance for Credit Losses on Financing Receivables

The following is a summary of transactions during the three and six months ended March 31, 2015 and 2014 in the allowance for loan losses on loans covered by loss sharing:

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2015			2014			2015			2014
Balance, beginning of period	$	1,012,679		$	3,434,733		$	997,524		$	3,924,278
Loans charged off, gross	—			(168,861		)	(64,853		)	(138,885		)
Recoveries on loans previously charged off	13,635			75,988			13,643			84,150
Provision (benefit) for loan losses charged (reversed) to FDIC receivable	(76,000		)	(1,020,167		)	—			(1,549,966		)
Provision for loan losses charged to operations	(4,000		)	(53,693		)	—			(51,577		)
Balance, end of period	$	946,314		$	2,268,000		$	946,314		$	2,268,000

Troubled Debt Restructurings on Financing Receivables

There were no new troubled debt restructurings (“TDRs”) in the six month period ended March 31, 2015. For the six month period ended March 31, 2014, the following table presents a breakdown of the types of concessions determined to be troubled debt restructurings (“TDRs”) during the period by loan class:

	Accruing Loans					Nonaccrual Loans
	Six Months Ended March 31, 2014					Six Months Ended March 31, 2014
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Payment structure modification:
Commercial real estate	1	$	552,961	$	552,961	—	$	—	$	—
Total	1	$	552,961	$	552,961	—	$	—	$	—

Non-covered loans

Allowance for Credit Losses on Financing Receivables

The following tables are a summary of transactions in the allowance for loan losses on loans not covered by loss sharing by portfolio segment:

	Three Months Ended March 31, 2015
	1-4 family real estate			Commercial real estate			Commercial			Real estate construction			Consumer and other			Unallocated		Total
Allowance for loan losses:
Balance at beginning of period	$	810,797		$	5,887,208		$	391,617		$	470,369		$	14,144		$	920,062	$	8,494,197
Charge-offs	(4,921		)	(53,181		)	—			—			(1,000		)	—		(59,102		)
Recoveries	—			325			23,129			—			4,555			—		28,009
Provision	(180,370		)	236,779			(17,135		)	(50,388		)	(3,680		)	14,794		—
Balance at end of period	$	625,506		$	6,071,131		$	397,611		$	419,981		$	14,019		$	934,856	$	8,463,104

	Six Months Ended March 31, 2015
	1-4 family real estate			Commercial real estate			Commercial			Real estate construction			Consumer and other			Unallocated		Total
Allowance for loan losses:
Balance at beginning of period	$	812,130		$	5,969,819		$	400,883		$	492,903		$	13,990		$	783,648	$	8,473,373
Charge-offs	(83,591		)	(53,180		)	—			—			(10,622		)	—		(147,393		)
Recoveries	4,000			94,623			32,607			—			5,894			—		137,124
Provision	(107,033		)	59,869			(35,879		)	(72,922		)	4,757			151,208		—
Balance at end of period	$	625,506		$	6,071,131		$	397,611		$	419,981		$	14,019		$	934,856	$	8,463,104
Ending balance: individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—				$	—
Loans:
Ending balance: individually evaluated for impairment	$	1,517,435		$	7,881,126		$	75,225		$	—		$	—				$	9,473,786
Ending balance: collectively evaluated for impairment	170,613,813			332,290,554			29,356,581			70,758,469			4,559,832					607,579,249
Ending balance	$	172,131,248		$	340,171,680		$	29,431,806		$	70,758,469		$	4,559,832				$	617,053,035

	Three Months Ended March 31, 2014
	1-4 family real estate			Commercial real estate			Commercial			Real estate construction		Consumer and other			Unallocated			Total
Allowance for loan losses:
Balance at beginning of period	$	739,764		$	6,002,964		$	684,585		$	362,591	$	54,067		$	650,441		$	8,494,412
Charge-offs	(58,970		)	(30,437		)	—			—		(3,099		)	—			(92,506		)
Recoveries	—			9,111			19,052			—		548			—			28,711
Provision	(9,298		)	516,781			(262,314		)	42,909		64			(288,142		)	—
Balance at end of period	$	671,496		$	6,498,419		$	441,323		$	405,500	$	51,580		$	362,299		$	8,430,617

	Six Months Ended March 31, 2014
	1-4 family real estate			Commercial real estate			Commercial			Real estate construction		Consumer and other			Unallocated			Total
Allowance for loan losses:
Balance at beginning of period	$	862,043		$	5,446,357		$	455,833		$	387,302	$	124,717		$	912,644		$	8,188,896
Charge-offs	(100,379		)	(30,437		)	(22,035		)	—		(7,648		)	—			(160,499		)
Recoveries	—			70,231			29,062			—		2,927			—			102,220
Provision	(90,168		)	1,012,268			(21,537		)	18,198		(68,416		)	(550,345		)	300,000
Balance at end of period	$	671,496		$	6,498,419		$	441,323		$	405,500	$	51,580		$	362,299		$	8,430,617
Ending balance: individually evaluated for impairment	$	—		$	—		$	—		$	—	$	—					$	—
Loans:
Ending balance: individually evaluated for impairment	$	1,301,330		$	10,800,578		$	194,656		$	—	$	—					$	12,296,564
Ending balance: collectively evaluated for impairment	133,879,683			260,355,853			21,306,110			47,111,623		16,531,561						479,184,830
Ending balance	$	135,181,013		$	271,156,431		$	21,500,766		$	47,111,623	$	16,531,561					$	491,481,394

Past Due Loans [Member]

Past Due Financing Receivables

An age analysis of past due loans not covered by loss sharing, segregated by class of loans at March 31, 2015 and September 30, 2014 were as follows:

March 31, 2015

	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Loans		Loans > 90 Days Accruing (1)
1-4 family residential real estate	$	1,630,392	$	339,613	$	1,970,005	$	170,161,243	$	172,131,248	$	—
Commercial real estate	1,112,426		711,494		1,823,920		338,347,760		340,171,680		488,170
Commercial	111,131		2,225		113,356		29,318,450		29,431,806		2,225
Real estate construction	—		—		—		70,758,469		70,758,469		—
Consumer and other	7,312		—		7,312		4,552,520		4,559,832		—
Total	$	2,861,261	$	1,053,332	$	3,914,593	$	613,138,442	$	617,053,035	$	490,395

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(1) Previously covered loans in the amount of $490,395 are now reflected in the Greater than 90 Days Accruing column. These loans which are accounted for under ASC 310-30 are reported as accruing loans because of accretable discounts established at the time of acquisition.

September 30, 2014

	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Loans		Loans > 90 Days Accruing (1)
1-4 family residential real estate	$	1,927,860	$	545,179	$	2,473,039	$	150,337,462	$	152,810,501	$	516,659
Commercial real estate	254,423		1,943,161		2,197,584		298,358,439		300,556,023		1,218,188
Commercial	62,479		1,000		63,479		24,696,203		24,759,682		—
Real estate construction	—		—		—		63,485,411		63,485,411		—
Consumer and other	31,306		4,354		35,660		4,923,443		4,959,103		4,354
Total	$	2,276,068	$	2,493,694	$	4,769,762	$	541,800,958	$	546,570,720	$	1,739,201

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(1) Previously covered loans in the amount of $1,003,007 are now reflected in the Greater than 90 Days Accruing column. These loans which are accounted for under ASC 310-30 are reported as accruing loans because of accretable discounts established at the time of acquisition.

An age analysis of past due loans covered by loss sharing, segregated by class of loans at March 31, 2015 and September 30, 2014 were as follows:

March 31, 2015

	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total      Loans (1)		Loans > 90 Days Accruing (2)
1-4 family residential real estate	$	51,688	$	12,235	$	63,923	$	7,390,674	$	7,454,597	$	12,235
Commercial real estate	601,010		2,541,537		3,142,547		40,969,610		44,112,157		2,541,537
Commercial	57,700		83,997		141,697		1,672,941		1,814,638		83,997
Real estate construction	—		—		—		—		—		—
Consumer and other	—		—		—		41,725		41,725		—
Total	$	710,398	$	2,637,769	$	3,348,167	$	50,074,950	$	53,423,117	$	2,637,769

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(1) Covered loan balances are net of nonaccretable differences and allowance for covered loan losses and have not been reduced by $4,322,062 of accretable discounts and discounts on acquired performing loans.

(2) Covered loans contractually past due greater than ninety days are reported as accruing loans because of accretable discounts established at the time of acquisition.

September 30, 2014

	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total      Loans (1)		Loans > 90 Days Accruing (2)
1-4 family residential real estate	$	414,699	$	814,238	$	1,228,937	$	9,448,399	$	10,677,336	$	814,238
Commercial real estate	1,399,520		3,949,083		5,348,603		55,950,984		61,299,587		3,949,083
Commercial	387,641		551,721		939,362		2,573,517		3,512,879		551,721
Real estate construction	—		—		—		—		—		—
Consumer and other	—		—		—		148,098		148,098		—
Total	$	2,201,860	$	5,315,042	$	7,516,902	$	68,120,998	$	75,637,900	$	5,315,042

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(1) Covered loan balances are net of nonaccretable differences and allowance for covered loan losses and have not been reduced by $5,986,428 of accretable discounts and discounts on acquired performing loans.

(2) Covered loans contractually past due greater than ninety days are reported as accruing loans because of accretable discounts established at the time of acquisition.