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CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2014
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
NOTE 14.  CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
The Bank is the Company’s primary subsidiary.  The Bank is subject to various regulatory capital requirements.  Failure to meet minimum capital requirements can initiate certain mandatory or discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific quantitative capital guidelines using its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.  The requirements 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 Bank to maintain minimum amounts and ratios (set forth in the table below) of total risk-based capital and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier I capital (as defined) to average assets (as defined).  As of September 30, 2014, the Bank met all capital adequacy requirements.
 
The Bank’s actual and required capital amounts and ratios are presented in the following table.
 
          
Minimum Requirement To Be
 
      
Minimum Requirement For
  
Well Capitalized Under Prompt
 
  
Actual
  
Capital Adequacy Purposes
  
Corrective Action Provisions
 
  
Amount
  
Ratio
  
Amount
  
Ratio
  
Amount
  
Ratio
 
(Dollars in Thousands)
            
             
September 30, 2014
            
             
MetaBank
            
Tangible capital (to tangible assets)
 
$
176,388
   
8.60
%
 
$
30,771
   
1.50
%
 
$
n/
a
  
n/a
%
Tier 1 (core) capital (to adjusted total assets)
  
176,388
   
8.60
   
82,057
   
4.00
   
102,571
   
5.00
 
Tier 1 (core) capital (to risk-weighted assets)
  
176,388
   
20.95
   
33,672
   
4.00
   
50,508
   
6.00
 
Total risk based capital (to risk-weighted assets)
  
181,786
   
21.59
   
67,344
   
8.00
   
84,180
   
10.00
 
                         
September 30, 2013
                        
 
MetaBank
Tangible capital (to tangible assets)
 
$
160,145
   
9.38
%
 
$
25,608
   
1.50
%
 
$
n/
a
  
n/a
%
Tier 1 (core) capital (to adjusted total assets)
  
160,145
   
9.38
   
68,289
   
4.00
   
85,362
   
5.00
 
Tier 1 (core) capital (to risk-weighted assets)
  
160,145
   
22.44
   
28,551
   
4.00
   
42,827
   
6.00
 
Total risk based capital (to risk-weighted assets)
  
164,076
   
22.99
   
57,103
   
8.00
   
71,378
   
10.00
 

Regulations limit the amount of dividends and other capital distributions that may be paid by a financial institution without prior approval of its primary regulator.  The regulatory restriction is based on a three-tiered system with the greatest flexibility being afforded to well-capitalized (Tier 1) institutions.  The Bank is currently a Tier 1 institution.  Accordingly, the Bank can make, without prior regulatory approval, distributions during a calendar year up to 100% of their retained net income for the calendar year-to-date plus retained net income for the previous two calendar years (less any dividends previously paid) as long as they remain well-capitalized, as defined in prompt corrective action regulations, following the proposed distribution.  Accordingly, at September 30, 2014, approximately $45.0 million of the Bank’s retained earnings were potentially available for distribution to the Company.
 
On July 21, 2011, pursuant to the Dodd Frank Act, the OTS was integrated into the OCC and the functions of the OTS related to thrift holding companies were transferred to the Federal Reserve.  The OCC is now responsible for the ongoing examination, supervision and regulation of the Bank, including matters with respect to the Consent Order against the Bank.  The Dodd Frank Act maintains the existence of the federal savings association charter and the HOLA, the primary statute governing the federal savings banks.  The Federal Reserve is now responsible for the ongoing examination, supervision and regulation of the Company, including matters with respect to the Consent Order against the Company.  Prior to passage of the Dodd-Frank Act, the OTS had issued supervisory directives to the Bank, consent orders to the Bank and the Company, and had taken other regulatory action to require the Bank to reimburse certain consumers in connection with a credit program that was discontinued.  All supervisory directives have been terminated, and on August 7, 2014 the OCC terminated the Bank’s Consent Order.  The Consent Order against the Company is still in effect, although management believes its effect on the Company’s financial condition and results of operations has been and will continue to be immaterial.  The Company anticipates (but cannot guarantee) that the order will be terminated in the first calendar quarter of 2015.