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SECURITIES
 12 Months Ended
Sep. 30, 2015
SECURITIES [Abstract]  
SECURITIES
NOTE 6.  SECURITIES
 
Securities available for sale were as follows:
 
Available For Sale
 
  
GROSS
  
GROSS
  
 
  
AMORTIZED
  
UNREALIZED
  
UNREALIZED
  
FAIR
 
At September 30, 2015
 
COST
  
GAINS
  
(LOSSES)
  
VALUE
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred and corporate securities
 
$
16,199
  
$
8
  
$
(2,263
)
 
$
13,944
 
Small business administration securities
  
54,493
   
1,563
   
-
   
56,056
 
Non-bank qualified obligations of states and political subdivisions
  
603,165
   
7,240
   
(1,815
)
  
608,590
 
Mortgage-backed securities
  
580,165
   
1,283
   
(4,865
)
  
576,583
 
Total debt securities
  
1,254,022
   
10,094
   
(8,943
)
  
1,255,173
 
Common equities and mutual funds
  
639
   
283
   
(8
)
  
914
 
Total available for sale securities
 
$
1,254,661
  
$
10,377
  
$
(8,951
)
 
$
1,256,087
 

  
  
GROSS
  
GROSS
  
 
  
AMORTIZED
  
UNREALIZED
  
UNREALIZED
  
FAIR
 
At September 30, 2014
 
COST
  
GAINS
  
(LOSSES)
  
VALUE
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred and corporate securities
 
$
48,747
  
$
191
  
$
(2,009
)
 
$
46,929
 
Small business administration securities
  
66,541
   
543
   
(72
)
  
67,012
 
Non-bank qualified obligations of states and political subdivisions
  
368,897
   
2,494
   
(3,811
)
  
367,580
 
Mortgage-backed securities
  
663,690
   
3,519
   
(9,339
)
  
657,870
 
Total debt securities
  
1,147,875
   
6,747
   
(15,231
)
  
1,139,391
 
Common equities and mutual funds
  
539
   
291
   
(5
)
  
825
 
Total available for sale securities
 
$
1,148,414
  
$
7,038
  
$
(15,236
)
 
$
1,140,216
 

Securities held to maturity were as follows:
 
Held to Maturity
 
  
GROSS
  
GROSS
  
 
  
AMORTIZED
  
UNREALIZED
  
UNREALIZED
  
FAIR
 
At September 30, 2015
 
COST
  
GAINS
  
(LOSSES)
  
VALUE
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
19,540
  
$
60
  
$
(187
)
 
$
19,413
 
Non-bank qualified obligations of states and political subdivisions
  
259,627
   
2,122
   
(419
)
  
261,330
 
Mortgage-backed securities
  
66,577
   
-
   
(473
)
  
66,104
 
Total held to maturity securities
 
$
345,744
  
$
2,182
  
$
(1,079
)
 
$
346,847
 

  
  
GROSS
  
GROSS
  
 
  
AMORTIZED
  
UNREALIZED
  
UNREALIZED
  
FAIR
 
At September 30, 2014
 
COST
  
GAINS
  
(LOSSES)
  
VALUE
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
19,304
  
$
48
  
$
(372
)
 
$
18,980
 
Non-bank qualified obligations of states and political subdivisions
  
193,595
   
894
   
(2,329
)
  
192,160
 
Mortgage-backed securities
  
70,034
   
-
   
(1,862
)
  
68,172
 
Total held to maturity securities
 
$
282,933
  
$
942
  
$
(4,563
)
 
$
279,312
 

Included in securities available for sale are trust preferred securities as follows:
 
At September 30, 2015
 
  
  
  
 
     
Issuer(1)
 
Amortized Cost
  
Fair Value
  
Unrealized
Gain (Loss)
  
S&P
Credit Rating
 
Moody's
Credit Rating
  
(Dollars in Thousands)
     
  
  
  
  
     
      
Key Corp. Capital I
 
$
4,986
  
$
4,189
  
$
(797
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
  
4,979
   
4,076
   
(903
)
 
BB
 
Baa2
PNC Capital Trust
  
4,965
   
4,402
   
(563
)
 
BBB-
 
Baa1
Total
 
$
14,930
  
$
12,667
  
$
(2,263
)
    
  
 
 
(1)
 Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

At September 30, 2014
 
  
  
  
  
 
Issuer(1)
 
Amortized Cost
  
Fair Value
  
Unrealized
Gain (Loss)
  
S&P
Credit Rating
  
Moody's
Credit Rating
 
  
(Dollars in Thousands)
      
 
  
  
  
      
 
Key Corp. Capital I
 
$
4,985
  
$
4,400
  
$
(585
)
 
BB+
  
Baa3
 
Huntington Capital Trust II SE
  
4,977
   
4,300
   
(677
)
 
BB
  
Baa3
 
PNC Capital Trust
  
4,962
   
4,400
   
(562
)
 
BBB-
  
Baa2
 
Wells Fargo (Corestates Capital) Trust
  
4,444
   
4,400
   
(44
)
 
BBB+
  A3 
Total
 
$
19,368
  
$
17,500
  
$
(1,868
)
        

 
(1)
Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows.  Management also determines whether the Company intends to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity.  To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.
 
Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale, Held to Maturity or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income.  HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities.
 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2015, and 2014, are as follows:
 
Available For Sale
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Trust preferred and corporate securities
 
$
-
  
$
-
  
$
12,667
  
$
(2,263
)
 
$
12,667
  
$
(2,263
)
Non-bank qualified obligations of states and political subdivisions
  
97,006
   
(860
)
  
42,583
   
(955
)
  
139,589
   
(1,815
)
Mortgage-backed securities
  
448,988
   
(4,301
)
  
48,079
   
(564
)
  
497,067
   
(4,865
)
Total debt securities
  
545,994
   
(5,161
)
  
103,329
   
(3,782
)
  
649,323
   
(8,943
)
Common equities and mutual funds
  
-
   
-
   
121
   
(8
)
  
121
   
(8
)
Total available for sale securities
 
$
545,994
  
$
(5,161
)
 
$
103,450
  
$
(3,790
)
 
$
649,444
  
$
(8,951
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At September 30, 2014
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Trust preferred and corporate securities
 
$
6,073
  
$
(47
)
 
$
25,359
  
$
(1,962
)
 
$
31,432
  
$
(2,009
)
Small Business Administration securities
  
8,454
   
(72
)
  
-
   
-
   
8,454
   
(72
)
Non-bank qualified obligations of states and political subdivisions
  
27,062
   
(70
)
  
191,146
   
(3,741
)
  
218,208
   
(3,811
)
Mortgage-backed securities
  
238,980
   
(1,248
)
  
234,347
   
(8,091
)
  
473,327
   
(9,339
)
Total debt securities
  
280,569
   
(1,437
)
  
450,852
   
(13,794
)
  
731,421
   
(15,231
)
Common equities and mutual funds
  
123
   
(5
)
  
-
   
-
   
123
   
(5
)
Total available for sale securities
 
$
280,692
  
$
(1,442
)
 
$
450,852
  
$
(13,794
)
 
$
731,544
  
$
(15,236
)

Held To Maturity
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Obligations of states and political subdivisions
 
$
5,528
  
$
(34
)
 
$
7,964
  
$
(153
)
 
$
13,492
  
$
(187
)
Non-bank qualified obligations of states and political subdivisions
  
78,663
   
(365
)
  
4,136
   
(54
)
  
82,799
   
(419
)
Mortgage-backed securities
  
5,509
   
(43
)
  
60,595
   
(430
)
  
66,104
   
(473
)
Total held to maturity securities
 
$
89,700
  
$
(442
)
 
$
72,695
  
$
(637
)
 
$
162,395
  
$
(1,079
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At September 30, 2014
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Obligations of states and political subdivisions
 
$
1,056
  
$
(2
)
 
$
14,079
  
$
(370
)
 
$
15,135
  
$
(372
)
Non-bank qualified obligations of states and political subdivisions
  
-
   
-
   
147,949
   
(2,329
)
  
147,949
   
(2,329
)
Mortgage-backed securities
  
-
   
-
   
68,172
   
(1,862
)
  
68,172
   
(1,862
)
Total held to maturity securities
 
$
1,056
  
$
(2
)
 
$
230,200
  
$
(4,561
)
 
$
231,256
  
$
(4,563
)

As of September 30, 2015 and 2014, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2015 and 2014.
 
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
 
Available For Sale
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
  
  
 
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
1,174
   
1,207
 
Due after five years through ten years
  
370,087
   
376,394
 
Due after ten years
  
302,596
   
300,989
 
   
673,857
   
678,590
 
Mortgage-backed securities
  
580,165
   
576,583
 
Common equities and mutual funds
  
639
   
914
 
Total available for sale securities
 
$
1,254,661
  
$
1,256,087
 

  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2014
 
(Dollars in Thousands)
 
  
  
 
Due in one year or less
 
$
2,999
  
$
3,048
 
Due after one year through five years
  
9,922
   
10,079
 
Due after five years through ten years
  
285,413
   
285,698
 
Due after ten years
  
185,851
   
182,696
 
   
484,185
   
481,521
 
Mortgage-backed securities
  
663,690
   
657,870
 
Common equities and mutual funds
  
539
   
825
 
Total available for sale securities
 
$
1,148,414
  
$
1,140,216
 

Held To Maturity
 
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
  
  
 
Due in one year or less
 
$
95
  
$
96
 
Due after one year through five years
  
8,411
   
8,430
 
Due after five years through ten years
  
140,145
   
140,505
 
Due after ten years
  
130,516
   
131,712
 
   
279,167
   
280,743
 
Mortgage-backed securities
  
66,577
   
66,104
 
Total held to maturity securities
 
$
345,744
  
$
346,847
 

  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2014
 
(Dollars in Thousands)
 
  
  
 
Due in one year or less
 
$
347
  
$
348
 
Due after one year through five years
  
4,726
   
4,718
 
Due after five years through ten years
  
91,532
   
89,984
 
Due after ten years
  
116,294
   
116,090
 
   
212,899
   
211,140
 
Mortgage-backed securities
  
70,034
   
68,172
 
Total held to maturity securities
 
$
282,933
  
$
279,312
 

Activities related to the sale of securities available for sale are summarized below.
 
  
2015
  
2014
  
2013
 
September 30,
 
(Dollars in Thousands)
 
       
Proceeds from sales
 
$
566,371
  
$
166,804
  
$
209,172
 
Gross gains on sales
  
2,753
   
2,292
   
2,947
 
Gross losses on sales
  
4,387
   
2,185
   
401