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Subsequent Events
9 Months Ended
Jun. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events

6.   Subsequent Events

In preparing these financial statements, management has evaluated events occurring subsequent to June 30, 2014 for potential recognition and disclosure.  There have been no material events or transactions which would require adjustments to the consolidated financial statements at June 30, 2014. 

 

On July 29, 2014, the Company announced that the Bank intends to implement a leverage strategy during the fourth quarter of fiscal year 2014.  The leverage strategy involves borrowing from the FHLB up to $2.10 billion on the Bank’s line of credit.  The borrowing will consist of two leverage tiers.  The first $800.0 million is intended to remain borrowed on the line of credit for an extended period of time while the additional $1.30 billion will be borrowed in the first days of each quarter and paid off prior to the end of each quarter.  Per FHLB policy, the Bank is required to purchase 4.5% of the amount borrowed in FHLB stock.  The proceeds of the borrowings, net of FHLB stock purchased, will be deposited at the Federal Reserve Bank of Kansas City.  Under current conditions, this leverage strategy will increase pre-tax income approximately $4.5 million annually.  Per the FHLB’s lending guidelines, total FHLB borrowings cannot exceed 40% of Bank assets without the pre-approval of the FHLB president.  The leverage strategy will likely result in FHLB borrowings exceeding 40% of Bank assets, so the Bank will be required to obtain pre-approval from the FHLB president in order to implement the leverage strategy.  Management believes the Bank will receive the necessary pre-approval from the FHLB president.  Additionally, it may be necessary for the Bank to pledge some securities, in addition to certain qualifying mortgage loans that are currently secured under a blanket collateral agreement with the FHLB, in order to implement the leverage strategy.