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SEGMENT INFORMATION
 3 Months Ended
Dec. 31, 2014
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 9.SEGMENT INFORMATION
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company has determined that it has two reportable segments. The first reportable segment, Retail Banking, a division of the Bank, operates as a traditional community bank providing deposit, loan and other related products to individuals and small businesses, primarily in the communities where its offices are located. The second reportable segment, MPS, is also a division of the Bank.  MPS provides a number of products and services to financial institutions and other businesses.  These products and services include issuance of prepaid debit cards, sponsorship of Automated Teller Machines (“ATMs”) into the debit networks, credit programs, Automated Clearing House (“ACH”) origination services, gift card programs, rebate programs, travel programs, and tax related programs.  Other programs are in the process of development.  The remaining grouping under the caption “All Others” consists of the operations of the Company and inter-segment eliminations as well as specialty lending.
 
Transactions between affiliates, the resulting revenues of which are shown in the intersegment revenue category, are conducted at market prices, meaning prices that would be paid if the companies were not affiliates.
 
The following tables present segment data for the Company for the three months ended December 31, 2014 and 2013, respectively.
 
  
Retail
Banking
  
Meta Payment
Systems®
  
All Others
  
Total
 
         
Three Months Ended December 31, 2014
        
Interest income
 
$
8,756
  
$
4,889
  
$
587
  
$
14,232
 
Interest expense
  
506
   
45
   
110
   
661
 
Net interest income (expense)
  
8,250
   
4,844
   
477
   
13,571
 
Provision (recovery) for loan losses
  
-
   
-
   
48
   
48
 
Non-interest income
  
(566
)
  
13,052
   
188
   
12,674
 
Non-interest expense
  
5,874
   
15,855
   
684
   
22,413
 
Income (loss) before income tax expense (benefit)
  
1,810
   
2,041
   
(67
)
  
3,784
 
Income tax expense (benefit)
  
(93
)
  
337
   
(55
)
  
189
 
Net income (loss)
 
$
1,903
  
$
1,704
  
$
(12
)
 
$
3,595
 
                 
Inter-segment revenue (expense)
 
$
(3,896
)
 
$
3,896
  
$
-
  
$
-
 
Total assets
  
308,613
   
1,706,134
   
93,315
   
2,108,063
 
Total deposits
  
234,805
   
1,554,114
   
(40
)
  
1,788,879
 

Losses on sale of securities of $1.3 million were recorded on the Retail Bank, as retail deposits are the funding source for Company investments, thus driving the negative non-interest income and income tax benefit on the Retail Bank.  Meta Financial sold securities to fund the loans purchased in the AFS/IBEX transaction.

  
Retail
Banking
  
Meta Payment
Systems®
  
All Others
  
Total
 
         
Three Months Ended December 31, 2013
        
Interest income
 
$
7,462
  
$
3,700
  
$
-
  
$
11,162
 
Interest expense
  
509
   
26
   
114
   
649
 
Net interest income (expense)
  
6,953
   
3,674
   
(114
)
  
10,513
 
Provision (recovery) for loan losses
  
-
   
-
   
-
   
-
 
Non-interest income
  
750
   
12,837
   
-
   
13,587
 
Non-interest expense
  
4,832
   
13,727
   
502
   
19,061
 
Income (loss) before income tax expense (benefit)
  
2,871
   
2,784
   
(616
)
  
5,039
 
Income tax expense (benefit)
  
616
   
639
   
(218
)
  
1,037
 
Net income (loss)
 
$
2,255
  
$
2,145
  
$
(398
)
 
$
4,002
 
                 
Inter-segment revenue (expense)
 
$
3,216
  
$
(3,216
)
 
$
-
  
$
-
 
Total assets
  
513,690
   
1,290,483
   
2,786
   
1,806,959
 
Total deposits
  
238,422
   
1,150,964
   
(8,252
)
  
1,381,134
 


The following tables present gross profit data for MPS for the three months ended December 31, 2014 and 2013.

Three Months Ended December 31,
 
2014
  
2013
 
     
Interest income
 
$
4,889
  
$
3,700
 
Interest expense
  
45
   
26
 
Net interest income
  
4,844
   
3,674
 
Provision (recovery) for loan losses
  
-
   
-
 
Non-interest income
  
13,052
   
12,837
 
Card processing expense
  
4,691
   
4,237
 
Gross Profit
  
13,205
   
12,274
 
         
Other non-interest expense
  
11,164
   
9,490
 
         
Income (loss) before income tax expense (benefit)
  
2,041
   
2,784
 
Income tax expense (benefit)
  
337
   
639
 
Net Income (Loss)
 
$
1,704
  
$
2,145