LOANS RECEIVABLE, NET (Tables)

12 Months Ended

Sep. 30, 2014

Year-end loans receivable were as follows:

	September 30, 2014			September 30, 2013
	(Dollars in Thousands)

1-4 Family Real Estate	$	116,395		$	82,287
Commercial and Multi-Family Real Estate		224,302			192,786
Agricultural Real Estate		56,071			29,552
Consumer		29,329			30,314
Commercial Operating		30,846			16,264
Agricultural Operating		42,258			33,750
Total Loans Receivable		499,201			384,953

Less:
Allowance for Loan Losses		(5,397	)		(3,930	)
Net Deferred Loan Origination Fees		(797	)		(595	)
Total Loans Receivable, Net	$	493,007		$	380,428

Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans

Annual activity in the allowance for loan losses was as follows:

Year ended September 30,	2014			2013			2012
	(Dollars in Thousands)

Beginning balance	$	3,930		$	3,971		$	4,926
Provision (recovery) for loan losses		1,150			-			1,049
Recoveries		367			179			99
Charge offs		(50	)		(220	)		(2,103	)
Ending balance	$	5,397		$	3,930		$	3,971

Allowance for Loan Losses and Recorded Investment in loans at September 30, 2014 and 2013 are as follows:

	1-4 Family Real Estate			Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating			Agricultural Operating			Unallocated		Total
	(Dollars in Thousands)
Year Ended September 30, 2014

Allowance for loan losses:
Beginning balance	$	333		$	1,937		$	112	$	74		$	49		$	267		$	1,158	$	3,930
Provision (recovery) for loan losses		217			(709	)		151		4			26			502			959		1,150
Charge offs		-			-			-		-			-			(50	)		-		(50	)
Recoveries		2			347			-		-			18			-			-		367
Ending balance	$	552		$	1,575		$	263	$	78		$	93		$	719		$	2,117	$	5,397


Ending balance: individually evaluated for impairment		23			350			-		-			-			340			-		713
Ending balance: collectively evaluated for impairment		529			1,225			263		78			93			379			2,117		4,684
Total	$	552		$	1,575		$	263	$	78		$	93		$	719		$	2,117	$	5,397

Loans:
Ending balance: individually evaluated for impairment		387			5,655			-		-			22			340			-		6,404
Ending balance: collectively evaluated for impairment		116,008			218,647			56,071		29,329			30,824			41,918			-		492,797
Total	$	116,395		$	224,302		$	56,071	$	29,329		$	30,846		$	42,258		$	-	$	499,201

	1-4 Family Real Estate			Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating			Agricultural Operating			Unallocated		Total
	(Dollars in Thousands)
Year Ended September 30, 2013

Allowance for loan losses:
Beginning balance	$	193		$	3,113		$	1	$	3		$	49		$	-		$	612	$	3,971
Provision (recovery) for loan losses		163			(1,095	)		111		71			(63	)		267			546		-
Charge offs		(25	)		(194	)		-		(1	)		-			-			-		(220	)
Recoveries		2			113			-		1			63			-			-		179
Ending balance	$	333		$	1,937		$	112	$	74		$	49		$	267		$	1,158	$	3,930


Ending balance: individually evaluated for impairment		25			404			-		-			-			-			-		429
Ending balance: collectively evaluated for impairment		308			1,533			112		74			49			267			1,158		3,501
Total	$	333		$	1,937		$	112	$	74		$	49		$	267		$	1,158	$	3,930

Loans:
Ending balance: individually evaluated for impairment		641			6,634			-		-			45			-			-		7,320
Ending balance: collectively evaluated for impairment		81,646			186,152			29,552		30,314			16,219			33,750			-		377,633
Total	$	82,287		$	192,786		$	29,552	$	30,314		$	16,264		$	33,750		$	-	$	384,953

Asset Classification of Loans

The asset classification of loans at September 30, 2014 and 2013, are as follows:

September 30, 2014	1-4 Family Real Estate		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Total
	(Dollars in Thousands)

Pass	$	115,700	$	222,074	$	52,364	$	29,329	$	30,709	$	32,261	$	482,437
Watch		369		852		273		-		137		369		2,000
Special Mention		81		96		1,660		-		-		63		1,900
Substandard		245		1,280		1,774		-		-		9,565		12,864
Doubtful		-		-		-		-		-		-		-
	$	116,395	$	224,302	$	56,071	$	29,329	$	30,846	$	42,258	$	499,201

September 30, 2013	1-4 Family Real Estate		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Total
	(Dollars in Thousands)

Pass	$	81,719	$	177,513	$	26,224	$	30,314	$	16,251	$	26,362	$	358,383
Watch		239		7,791		3,328		-		13		1,690		13,061
Special Mention		84		102		-		-		-		5,698		5,884
Substandard		245		7,380		-		-		-		-		7,625
Doubtful		-		-		-		-		-		-		-
	$	82,287	$	192,786	$	29,552	$	30,314	$	16,264	$	33,750	$	384,953

Past Due Loans

Past due loans at September 30, 2014 and 2013 are as follows:

September 30, 2014	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Non-Accrual Loans		Total Loans Receivable
	(Dollars in Thousands)

1-4 Family Real Estate	$	111	$	37	$	-	$	148	$	115,966	$	281	$	116,395
Commercial and Multi-Family Real Estate		-		-		-		-		223,990		312		224,302
Agricultural Real Estate		-		-		-		-		56,071		-		56,071
Consumer		2		12		54		68		29,261		-		29,329
Commercial Operating		-		-		-		-		30,846		-		30,846
Agricultural Operating		-		-		-		-		41,918		340		42,258
Total	$	113	$	49	$	54	$	216	$	498,052	$	933	$	499,201

September 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Non-Accrual Loans		Total Loans Receivable
	(Dollars in Thousands)

1-4 Family Real Estate	$	53	$	-	$	245	$	298	$	81,744	$	245	$	82,287
Commercial and Multi-Family Real Estate		102		-		107		209		192,150		427		192,786
Agricultural Real Estate		1,169		-		-		1,169		28,383		-		29,552
Consumer		29		21		13		63		30,251		-		30,314
Commercial Operating		-		-		-		-		16,257		7		16,264
Agricultural Operating		-		-		-		-		33,750		-		33,750
Total	$	1,353	$	21	$	365	$	1,739	$	382,535	$	679	$	384,953

Impaired Loans

Impaired loans at September 30, 2014 and 2013 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
September 30, 2014	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	142	$	142	$	-
Commercial and Multi-Family Real Estate		4,375		4,375		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		22		22		-
Agricultural Operating		-		-		-
Total	$	4,539	$	4,539	$	-
Loans with a specific valuation allowance
1-4 Family Real Estate	$	245	$	245	$	23
Commercial and Multi-Family Real Estate		1,280		1,280		350
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		340		340		340
Total	$	1,865	$	1,865	$	713

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
September 30, 2013	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	359	$	359	$	-
Commercial and Multi-Family Real Estate		4,527		4,535		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		45		60		-
Agricultural Operating		-		-		-
Total	$	4,931	$	4,954	$	-
Loans with a specific valuation allowance
1-4 Family Real Estate	$	282	$	282	$	25
Commercial and Multi-Family Real Estate		2,107		2,107		404
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		-		-		-
Total	$	2,389	$	2,389	$	429

Cash interest collected on impaired loans was not material during the years ended September 30, 2014 and 2013.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2014 and 2013.

	Year Ended September 30,
	2014		2013
	Average Recorded Investment		Average Recorded Investment
	(Dollars in Thousands)

1-4 Family Real Estate	$	574	$	596
Commercial and Multi-Family Real Estate		6,526		8,480
Agricultural Real Estate		-		-
Consumer		-		1
Commercial Operating		34		51
Agricultural Operating		29		-
Total	$	7,163	$	9,128