CREDIT DISCLOSURES (Tables)

3 Months Ended

Dec. 31, 2014

Loans receivable at December 31, 2014 and September 30, 2014 are as follows:

	December 31, 2014			September 30, 2014
	(Dollars in Thousands)

1-4 Family Real Estate	$	111,773		$	116,395
Commercial and Multi-Family Real Estate		251,022			224,302
Agricultural Real Estate		58,193			56,071
Consumer		33,796			29,329
Commercial Operating		28,057			30,846
Agricultural Operating		39,325			42,258
Premium Finance		74,156			-
Total Loans Receivable		596,322			499,201

Less:
Allowance for Loan Losses		(5,225	)		(5,397	)
Net Deferred Loan Origination Fees		(655	)		(797	)
Total Loans Receivable, Net	$	590,442		$	493,007

Activity in Allowance for Loan Losses

Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three month periods ended December 31, 2014 and 2013 is as follows:

	1-4 Family Real Estate			Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating			Agricultural Operating			Premium Finance			Unallocated		Total
	(Dollars in Thousands)
Three Months Ended December 31, 2014

Allowance for loan losses:
Beginning balance	$	552		$	1,575		$	263	$	78		$	93		$	719		$	-		$	2,117	$	5,397
Provision (recovery) for loan losses		(40	)		(169	)		3		(0	)		(9	)		(89	)		48			304		48
Loan charge offs		-			(214	)		-		-			-			-			(17	)		-		(231	)
Recoveries		-			6			-		-			1			-			4			-		11
Ending balance	$	512		$	1,198		$	266	$	78		$	85		$	630		$	35		$	2,421	$	5,225

Ending balance: individually evaluated for impairment		-			310			-		-			-			296			-			-		606
Ending balance: collectively evaluated for impairment		512			888			266		78			85			334			35			2,421		4,619
Total	$	512		$	1,198		$	266	$	78		$	85		$	630		$	35		$	2,421	$	5,225

Loans:
Ending balance: individually evaluated for impairment		348			1,427			-		-			20			296			-			-		2,091
Ending balance: collectively evaluated for impairment		111,425			249,595			58,193		33,796			28,037			39,029			74,156			-		594,231
Total	$	111,773		$	251,022		$	58,193	$	33,796		$	28,057		$	39,325		$	74,156		$	-	$	596,322

	1-4 Family Real Estate		Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating		Agricultural Operating			Premium Finance		Unallocated		Total
	(Dollars in Thousands)
Three Months Ended December 31, 2013

Allowance for loan losses:
Beginning balance	$	333	$	1,937		$	112	$	74		$	49	$	267		$	-	$	1,158	$	3,930
Provision (recovery) for loan losses		8		(713	)		12		(2	)		7		(19	)		-		707		-
Loan charge offs		-		-			-		-			-		-			-		-		-
Recoveries		-		328			-		-			-		-			-		-		328
Ending balance	$	341	$	1,552		$	124	$	72		$	56	$	248		$	-	$	1,865	$	4,258

Ending balance: individually evaluated for impairment		25		421			-		-			-		-			-		-		446
Ending balance: collectively evaluated for impairment		316		1,131			124		72			56		248			-		1,865		3,812
Total	$	341	$	1,552		$	124	$	72		$	56	$	248		$	-	$	1,865	$	4,258

Loans:
Ending balance: individually evaluated for impairment		678		8,417			-		-			41		-			-		-		9,136
Ending balance: collectively evaluated for impairment		91,524		195,829			33,774		27,895			18,255		31,008			-		-		398,285
Total	$	92,202	$	204,246		$	33,774	$	27,895		$	18,296	$	31,008		$	-	$	-	$	407,421

Asset Classification of Loans Excluding Loans Held for Sale

The asset classification of loans at December 31, 2014 and September 30, 2014 are as follows:

December 31, 2014	1-4 Family Real Estate		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Premium Finance		Total
	(Dollars in Thousands)

Pass	$	111,014	$	248,129	$	54,603	$	33,796	$	27,921	$	30,554	$	74,156	$	580,173
Watch		290		1,827		259		-		136		598		-		3,110
Special Mention		224		95		1,562		-		-		62		-		1,943
Substandard		245		971		1,769		-		-		8,111		-		11,096
Doubtful		-		-		-		-		-		-		-		-
	$	111,773	$	251,022	$	58,193	$	33,796	$	28,057	$	39,325	$	74,156	$	596,322

September 30, 2014	1-4 Family Real Estate		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Premium Finance		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

Summary of Past Due Loans

Past due loans at December 31, 2014 and September 30, 2014 are as follows:

December 31, 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	$	2	$	45	$	-	$	47	$	111,481	$	245	$	111,773
Commercial and Multi-Family Real Estate		-		-		-		-		250,050		972		251,022
Agricultural Real Estate		1,081		-		-		1,081		57,112		-		58,193
Consumer		-		-		19		19		33,777		-		33,796
Commercial Operating		3		-		-		3		28,054		-		28,057
Agricultural Operating		7		-		-		7		39,022		296		39,325
Premium Finance		805		293		592		1,690		72,466		-		74,156
Total	$	1,898	$	338	$	611	$	2,847	$	591,962	$	1,513	$	596,322

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

Impaired Loans

Impaired loans at December 31, 2014 and September 30, 2014 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
December 31, 2014	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	348	$	348	$	-
Commercial and Multi-Family Real Estate		455		455		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		20		20		-
Agricultural Operating		-		-		-
Premium Finance		-		-		-
Total	$	823	$	823	$	-
Loans with a specific valuation allowance
1-4 Family Real Estate	$	-	$	-	$	-
Commercial and Multi-Family Real Estate		972		1,186		310
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		296		296		296
Premium Finance		-		-		-
Total	$	1,268	$	1,482	$	606

	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

The following table provides the average recorded investment in impaired loans for the three month periods ended December 31, 2014 and 2013.

	Three Months Ended December 31,
	2014		2013
	Average Recorded Investment		Average Recorded Investment
	(Dollars in Thousands)

1-4 Family Real Estate	$	374	$	653
Commercial and Multi-Family Real Estate		4,246		7,228
Agricultural Real Estate		-		-
Consumer		-		-
Commercial Operating		22		44
Agricultural Operating		325		-
Premium Finance		-		-
Total	$	4,967	$	7,925