CREDIT DISCLOSURES (Tables)

6 Months Ended

Mar. 31, 2015

Loans receivable at March 31, 2015 and September 30, 2014 are as follows:

	March 31, 2015			September 30, 2014
	(Dollars in Thousands)

1-4 Family Real Estate	$	115,741		$	116,395
Commercial and Multi-Family Real Estate		260,537			224,302
Agricultural Real Estate		65,720			56,071
Consumer		30,535			29,329
Commercial Operating		27,266			30,846
Agricultural Operating		41,749			42,258
Premium Finance		83,191			-
Total Loans Receivable		624,739			499,201

Less:
Allowance for Loan Losses		(5,716	)		(5,397	)
Net Deferred Loan Origination Fees		(279	)		(797	)
Total Loans Receivable, Net	$	618,744		$	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 and six month periods ended March 31, 2015 and 2014 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 March 31, 2015

Allowance for loan losses:
Beginning balance	$	512		$	1,198		$	266		$	78	$	85	$	630		$	35		$	2,421	$	5,225
Provision (recovery) for loan losses		55			20			(1	)		-		14		37			192			276		593
Charge offs		(45	)		-			-			-		-		-			(81	)		-		(126	)
Recoveries		-			-			-			-		2		-			22			-		24
Ending balance	$	522		$	1,218		$	265		$	78	$	101	$	667		$	168		$	2,697	$	5,716

Six Months Ended March 31, 2015

Allowance for loan losses:
Beginning balance	$	552		$	1,575		$	263		$	78	$	93	$	719		$	-		$	2,117	$	5,397
Provision (recovery) for loan losses		15			(149	)		2			-		5		(52	)		240			580		641
Charge offs		(45	)		(214	)		-			-		-		-			(98	)		-		(357	)
Recoveries		-			6			-			-		3		-			26			-		35
Ending balance	$	522		$	1,218		$	265		$	78	$	101	$	667		$	168		$	2,697	$	5,716


Ending balance: individually evaluated for impairment		-			296			-			1		-		326			-			-		623
Ending balance: collectively evaluated for impairment		522			922			265			77		101		341			168			2,697		5,093
Total	$	522		$	1,218		$	265		$	78	$	101	$	667		$	168		$	2,697	$	5,716

Loans:
Ending balance: individually evaluated for impairment		181			1,410			-			1		16		6,134			-			-		7,742
Ending balance: collectively evaluated for impairment		115,560			259,127			65,720			30,534		27,250		35,615			83,191			-		616,997
Total	$	115,741		$	260,537		$	65,720		$	30,535	$	27,266	$	41,749		$	83,191		$	-	$	624,739

	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 March 31, 2014

Allowance for loan losses:
Beginning balance	$	341		$	1,552		$	124	$	72		$	56		$	248	$	-	$	1,865		$	4,258
Provision (recovery) for loan losses		(54	)		114			111		(1	)		(4	)		230		-		(96	)		300
Charge offs		-			-			-		-			-			-		-		-			-
Recoveries		-			-			-		-			14			-		-		-			14
Ending balance	$	287		$	1,666		$	235	$	71		$	66		$	478	$	-	$	1,769		$	4,572

Six Months Ended March 31, 2014

Allowance for loan losses:
Beginning balance	$	333		$	1,937		$	112	$	74		$	49		$	267	$	-	$	1,158		$	3,930
Provision (recovery) for loan losses		(46	)		(599	)		123		(3	)		3			211		-		611			300
Charge offs		-			-			-		-			-			-		-		-			-
Recoveries		-			328			-		-			14			-		-		-			342
Ending balance	$	287		$	1,666		$	235	$	71		$	66		$	478	$	-	$	1,769		$	4,572


Ending balance: individually evaluated for impairment		25			366			-		-			-			-		-		-			391
Ending balance: collectively evaluated for impairment		262			1,300			235		71			66			478		-		1,769			4,181
Total	$	287		$	1,666		$	235	$	71		$	66		$	478	$	-	$	1,769		$	4,572

Loans:
Ending balance: individually evaluated for impairment		673			5,703			-		-			30			-		-		-			6,406
Ending balance: collectively evaluated for impairment		99,054			205,632			35,206		27,112			22,000			35,770		-		-			424,774
Total	$	99,727		$	211,335		$	35,206	$	27,112		$	22,030		$	35,770	$	-	$	-		$	431,180

Asset Classification of Loans Excluding Loans Held for Sale

The asset classification of loans at March 31, 2015 and September 30, 2014 are as follows:

March 31, 2015	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	$	115,307	$	257,664	$	62,999	$	30,534	$	26,715	$	25,555	$	83,191	$	601,965
Watch		131		1,821		259		1		385		1,860		-		4,457
Special Mention		223		94		877		-		-		5,517		-		6,711
Substandard		80		958		1,585		-		166		8,817		-		11,606
Doubtful		-		-		-		-		-		-		-		-
	$	115,741	$	260,537	$	65,720	$	30,535	$	27,266	$	41,749	$	83,191	$	624,739

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 March 31, 2015 and September 30, 2014 are as follows:

March 31, 2015	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	$	22	$	-	$	-	$	22	$	115,639	$	80	$	115,741
Commercial and Multi-Family Real Estate		-		-		-		-		259,579		958		260,537
Agricultural Real Estate		-		-		-		-		65,720		-		65,720
Consumer		13		12		5		30		30,505		-		30,535
Commercial Operating		-		-		-		-		27,266		-		27,266
Agricultural Operating		4,409		-		-		4,409		37,304		36		41,749
Premium Finance		866		666		617		2,149		81,042		-		83,191
Total	$	5,310	$	678	$	622	$	6,610	$	617,055	$	1,074	$	624,739

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 March 31, 2015 and September 30, 2014 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
March 31, 2015	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	181	$	213	$	-
Commercial and Multi-Family Real Estate		452		452		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		16		16		-
Agricultural Operating		-		-		-
Premium Finance		-		-		-
Total	$	649	$	681	$	-
Loans with a specific valuation allowance
1-4 Family Real Estate	$	-	$	-	$	-
Commercial and Multi-Family Real Estate		958		958		296
Agricultural Real Estate		-		-		-
Consumer		1		1		1
Commercial Operating		-		-		-
Agricultural Operating		6,134		6,184		326
Premium Finance		-		-		-
Total	$	7,093	$	7,143	$	623

	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 and six month periods ended March 31, 2015 and 2014.

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
	Average Recorded Investment		Average Recorded Investment		Average Recorded Investment		Average Recorded Investment
	(Dollars in Thousands)

1-4 Family Real Estate	$	292	$	676	$	333	$	665
Commercial and Multi-Family Real Estate		1,421		7,512		2,834		7,370
Agricultural Real Estate		-		-		-		-
Consumer		-		-		-		-
Commercial Operating		19		37		20		41
Agricultural Operating		2,242		-		1,284		-
Premium Finance		-		-		-		-
Total	$	3,974	$	8,226	$	4,471	$	8,076