NOTE 6.

SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at December 31, 2014 and September 30, 2014 are presented below.

Available For Sale At December 31, 2014	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Trust preferred and corporate securities	$	23,684	$	35	$	(2,905	)	$	20,814
Small business administration securities		36,449		1,175		-			37,624
Non-bank qualified obligations of states and political subdivisions		409,945		4,047		(2,286	)		411,706
Mortgage-backed securities		578,196		2,982		(3,718	)		577,460
Total debt securities		1,048,274		8,239		(8,909	)		1,047,604
Common equities and mutual funds		544		315		(6	)		853
Total available for sale securities	$	1,048,818	$	8,554	$	(8,915	)	$	1,048,457

At September 30, 2014	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR 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 available for sale 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

Held to Maturity At December 31, 2014	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Obligations of states and political subdivisions	$	19,292	$	40	$	(264	)	$	19,068
Non-bank qualified obligations of states and political subdivisions		213,239		1,365		(1,096	)		213,508
Mortgage-backed securities		70,784		-		(811	)		69,973
Total held to maturity securities	$	303,315	$	1,405	$	(2,171	)	$	302,549

At September 30, 2014	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR 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 December 31, 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	$	4,986	$	4,100	$	(886	)	BB+	Baa3
Huntington Capital Trust II SE		4,977		4,000		(977	)	BB	Baa3
PNC Capital Trust		4,963		4,200		(763	)	BBB-	Baa2
Wells Fargo (Corestates Capital) Trust		4,455		4,200		(255	)	BBB+	A3
Total	$	19,381	$	16,500	$	(2,881	)

(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 a 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 (“AFS”), Held to Maturity (“HTM”) 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 (“AOCI”). 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 a continuous unrealized loss position at December 31, 2014 and September 30, 2014, are as follows:

Available For Sale	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At December 31, 2014	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Trust preferred and corporate securities	$	-	$	-		$	17,779	$	(2,905	)	$	17,779	$	(2,905	)
Non-bank qualified obligations of states and political subdivisions		27,499		(113	)		147,129		(2,173	)		174,628		(2,286	)
Mortgage-backed securities		151,891		(701	)		164,880		(3,017	)		316,771		(3,718	)
Total debt securities		179,390		(814	)		329,788		(8,095	)		509,178		(8,909	)
Common equities and mutual funds		-		-			123		(6	)		123		(6	)
Total available for sale securities	$	179,390	$	(814	)	$	329,911	$	(8,101	)	$	509,301	$	(8,915	)

	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 available for sale 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 December 31, 2014	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Obligations of states and political subdivisions	$	859	$	(6	)	$	15,332	$	(258	)	$	16,191	$	(264	)
Non-bank qualified obligations of states and political subdivisions		2,077		(2	)		122,185		(1,094	)		124,262		(1,096	)
Mortgage-backed securities		2,603		(2	)		67,370		(809	)		69,973		(811	)
Total held to maturity securities	$	5,539	$	(10	)	$	204,887	$	(2,161	)	$	210,426	$	(2,171	)

	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	)

At December 31, 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 December 31, 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
December 31, 2014	(Dollars in Thousands)

Due in one year or less	$	3,000	$	3,035
Due after one year through five years		2,908		2,934
Due after five years through ten years		286,966		289,666
Due after ten years		177,204		174,509
		470,078		470,144
Mortgage-backed securities		578,196		577,460
Common equities and mutual funds		544		853
Total available for sale securities	$	1,048,818	$	1,048,457

	AMORTIZED COST		FAIR VALUE
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
December 31, 2014	(Dollars in Thousands)

Due in one year or less	$	345	$	345
Due after one year through five years		5,367		5,320
Due after five years through ten years		104,112		103,403
Due after ten years		122,707		123,508
		232,531		232,576
Mortgage-backed securities		70,784		69,973
Total held to maturity securities	$	303,315	$	302,549

	AMORTIZED COST		FAIR VALUE
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