CREDIT DISCLOSURES (Tables)

9 Months Ended

Jun. 30, 2015

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

	June 30, 2015			September 30, 2014
	(Dollars in Thousands)

1-4 Family Real Estate	$	118,716		$	116,395
Commercial and Multi-Family Real Estate		278,910			224,302
Agricultural Real Estate		64,173			56,071
Consumer		32,968			29,329
Commercial Operating		30,004			30,846
Agricultural Operating		41,511			42,258
Premium Finance		91,740			-
Total Loans Receivable		658,022			499,201

Less:
Allowance for Loan Losses		(6,232	)		(5,397	)
Net Deferred Loan Origination Fees		(260	)		(797	)
Total Loans Receivable, Net	$	651,530		$	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 nine month periods ended June 30, 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 June 30, 2015

Allowance for loan losses:
Beginning balance	$	522		$	1,218		$	265	$	78	$	101	$	667		$	168		$	2,697		$	5,716
Provision (recovery) for loan losses		8			34			164		5		9		1,940			100			(1,560	)		700
Charge offs		-			-			-		-		-		(150	)		(96	)		-			(246	)
Recoveries		-			-			-		-		-		-			62			-			62
Ending balance	$	530		$	1,252		$	429	$	83	$	110	$	2,457		$	234		$	1,137		$	6,232

Nine Months Ended June 30, 2015

Allowance for loan losses:
Beginning balance	$	552		$	1,575		$	263	$	78	$	93	$	719		$	-		$	2,117		$	5,397
Provision (recovery) for loan losses		23			(115	)		166		5		14		1,888			340			(980	)		1,341
Charge offs		(45	)		(214	)		-		-		-		(150	)		(194	)		-			(603	)
Recoveries		-			6			-		-		3		-			88			-			97
Ending balance	$	530		$	1,252		$	429	$	83	$	110	$	2,457		$	234		$	1,137		$	6,232

Ending balance: individually evaluated for impairment		-			265			-		-		-		2,161			-			-			2,426
Ending balance: collectively evaluated for impairment		530			987			429		83		110		296			234			1,137			3,806
Total	$	530		$	1,252		$	429	$	83	$	110	$	2,457		$	234		$	1,137		$	6,232

Loans:
Ending balance: individually evaluated for impairment		124			1,397			-		-		13		5,869			-			-			7,403
Ending balance: collectively evaluated for impairment		118,592			277,513			64,173		32,968		29,991		35,642			91,740			-			650,619
Total	$	118,716		$	278,910		$	64,173	$	32,968	$	30,004	$	41,511		$	91,740		$	-		$	658,022

	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 June 30, 2014

Allowance for loan losses:
Beginning balance	$	287		$	1,666		$	235	$	71	$	66	$	478	$	-	$	1,769		$	4,572
Provision (recovery) for loan losses		(74	)		23			112		6		14		277		-		(58	)		300
Charge offs		-			-			-		-		-		-		-		-			-
Recoveries		2			19			-		-		-		2		-		-			23
Ending balance	$	215		$	1,708		$	347	$	77	$	80	$	757	$	-	$	1,711		$	4,895

Nine Months Ended June 30, 2014

Allowance for loan losses:
Beginning balance	$	333		$	1,937		$	112	$	74	$	49	$	267	$	-	$	1,158		$	3,930
Provision (recovery) for loan losses		(120	)		(576	)		235		3		31		474		-		553			600
Charge offs		-			-			-		-		-		-		-		-			-
Recoveries		2			347			-		-		-		16		-		-			365
Ending balance	$	215		$	1,708		$	347	$	77	$	80	$	757	$	-	$	1,711		$	4,895

Ending balance: individually evaluated for impairment		-			358			-		-		-		-		-		-			358
Ending balance: collectively evaluated for impairment		215			1,350			347		77		80		757		-		1,711			4,537
Total	$	215		$	1,708		$	347	$	77	$	80	$	757	$	-	$	1,711		$	4,895

Loans:
Ending balance: individually evaluated for impairment		389			5,678			-		-		28		-		-		-			6,095
Ending balance: collectively evaluated for impairment		108,324			211,226			56,945		29,379		26,655		38,958		-		-			471,487
Total	$	108,713		$	216,904		$	56,945	$	29,379	$	26,683	$	38,958	$	-	$	-		$	477,582

Asset Classification of Loans Excluding Loans Held for Sale

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

June 30, 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	$	118,465	$	275,549	$	37,023	$	32,968	$	29,019	$	25,904	$	91,740	$	610,668
Watch		216		2,412		24,810		-		837		3,771		-		32,046
Special Mention		10		-		877		-		-		1,716		-		2,603
Substandard		25		949		1,463		-		148		10,120		-		12,705
Doubtful		-		-		-		-		-		-		-		-
	$	118,716	$	278,910	$	64,173	$	32,968	$	30,004	$	41,511	$	91,740	$	658,022

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 June 30, 2015 and September 30, 2014 are as follows:

June 30, 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	$	444	$	-	$	-	$	444	$	118,247	$	25	$	118,716
Commercial and Multi-Family Real Estate		-		-		-		-		277,987		923		278,910
Agricultural Real Estate		24,770		-		-		24,770		39,403		-		64,173
Consumer		135		18		5		158		32,810		-		32,968
Commercial Operating		-		-		-		-		30,004		-		30,004
Agricultural Operating		916		116		-		1,032		34,610		5,869		41,511
Premium Finance		2,320		447		681		3,448		88,292		-		91,740
Total	$	28,585	$	581	$	686	$	29,852	$	621,353	$	6,817	$	658,022

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 June 30, 2015 and September 30, 2014 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
June 30, 2015	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	124	$	124	$	-
Commercial and Multi-Family Real Estate		449		449		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		13		13		-
Agricultural Operating		-		-		-
Premium Finance		-		-		-
Total	$	586	$	586	$	-
Loans with a specific valuation allowance
1-4 Family Real Estate	$	-	$	-	$	-
Commercial and Multi-Family Real Estate		948		948		265
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		5,869		5,869		2,161
Premium Finance		-		-		-
Total	$	6,817	$	6,817	$	2,426

	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 nine month periods ended June 30, 2015 and 2014.

	Three Months Ended June 30,				Nine Months Ended June 30,
	2015		2014		2015		2014
	Average Recorded Investment		Average Recorded Investment		Average Recorded Investment		Average Recorded Investment
	(Dollars in Thousands)

1-4 Family Real Estate	$	162	$	579	$	276	$	636
Commercial and Multi-Family Real Estate		1,406		5,694		2,358		6,811
Agricultural Real Estate		-		-		-		-
Consumer		1		-		-		-
Commercial Operating		15		29		18		37
Agricultural Operating		6,046		-		2,871		-
Premium Finance		-		-		-		-
Total	$	7,630	$	6,302	$	5,522	$	7,484