CREDIT DISCLOSURES (Tables)

3 Months Ended

Dec. 31, 2015

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

	December 31, 2015			September 30, 2015
	(Dollars in Thousands)

1-4 Family Real Estate	$	134,850		$	125,021
Commercial and Multi-Family Real Estate		322,125			310,199
Agricultural Real Estate		64,181			64,316
Consumer		34,868			33,527
Commercial Operating		37,505			29,893
Agricultural Operating		40,412			43,626
Premium Finance		110,640			106,505
Total Loans Receivable		744,581			713,087

Less:
Allowance for Loan Losses		(6,666	)		(6,255	)
Net Deferred Loan Origination Fees		(787	)		(577	)
Total Loans Receivable, Net	$	737,128		$	706,255

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, 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 December 31, 2015

Allowance for loan losses:
Beginning balance	$	278	$	1,187	$	163	$	20		$	28	$	3,537	$	293		$	749		$	6,255
Provision (recovery) for loan losses		7		7		8		(0	)		79		319		506			(140	)		786
Charge offs		-		-		-		-			-		-		(390	)		-			(390	)
Recoveries		-		-		-		-			-		-		15			-			15
Ending balance	$	285	$	1,194	$	171	$	20		$	107	$	3,856	$	424		$	609		$	6,666

Ending balance: individually evaluated for impairment		-		235		-		-			-		3,614		-			-			3,849
Ending balance: collectively evaluated for impairment		285		959		171		20			107		242		424			609			2,817
Total	$	285	$	1,194	$	171	$	20		$	107	$	3,856	$	424		$	609		$	6,666

Loans:
Ending balance: individually evaluated for impairment		117		1,341		-		0			8		4,832		-			-			6,298
Ending balance: collectively evaluated for impairment		134,733		320,784		64,181		34,868			37,497		35,580		110,640			-			738,283
Total	$	134,850	$	322,125	$	64,181	$	34,868		$	37,505	$	40,412	$	110,640		$	-		$	744,581

	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		-		(9	)		(89	)		48			304		48
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

Asset Classification of Loans Excluding Loans Held for Sale

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

December 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	$	133,824	$	319,608	$	33,275	$	34,868	$	36,598	$	27,978	$	110,640	$	696,791
Watch		994		1,619		28,357		0		797		986		-		32,753
Special Mention		9		-		877		-		-		4,114		-		5,000
Substandard		23		898		1,672		-		110		4,877		-		7,580
Doubtful		-		-		-		-		-		2,457		-		2,457
	$	134,850	$	322,125	$	64,181	$	34,868	$	37,505	$	40,412	$	110,640	$	744,581

September 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	$	124,775	$	307,876	$	35,106	$	33,527	$	29,052	$	29,336	$	106,505	$	666,177
Watch		212		1,419		26,703		-		712		1,079		-		30,125
Special Mention		10		-		877		-		-		4,014		-		4,901
Substandard		24		904		1,630		-		129		9,197		-		11,884
Doubtful		-		-		-		-		-		-		-		-
	$	125,021	$	310,199	$	64,316	$	33,527	$	29,893	$	43,626	$	106,505	$	713,087

Summary of Past Due Loans

Past due loans at December 31, 2015 and September 30, 2015 are as follows:

December 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	$	-	$	-	$	-	$	-	$	134,827	$	23	$	134,850
Commercial and Multi-Family Real Estate		-		-		-		-		321,228		897		322,125
Agricultural Real Estate		3,548		1,060		-		4,608		59,573		-		64,181
Consumer		-		-		26		26		34,842		-		34,868
Commercial Operating		-		-		-		-		37,505		-		37,505
Agricultural Operating		-		-		-		-		35,580		4,832		40,412
Premium Finance		778		440		856		2,074		108,566		-		110,640
Total	$	4,326	$	1,500	$	882	$	6,708	$	732,121	$	5,752	$	744,581

September 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	$	142	$	-	$	-	$	142	$	124,855	$	24	$	125,021
Commercial and Multi-Family Real Estate		-		-		-		-		309,295		904		310,199
Agricultural Real Estate		-		-		-		-		64,316		-		64,316
Consumer		152		-		13		165		33,362		-		33,527
Commercial Operating		-		-		-		-		29,893		-		29,893
Agricultural Operating		-		-		-		-		38,494		5,132		43,626
Premium Finance		702		362		1,728		2,792		103,713		-		106,505
Total	$	996	$	362	$	1,741	$	3,099	$	703,928	$	6,060	$	713,087

Impaired Loans

Impaired loans at December 31, 2015 and September 30, 2015 are as follows:

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

Loans without a specific valuation allowance
1-4 Family Real Estate	$	117	$	117	$	-
Commercial and Multi-Family Real Estate		443		443		-
Commercial Operating		8		8		-
Total	$	568	$	568	$	-
Loans with a specific valuation allowance
Commercial and Multi-Family Real Estate	$	898	$	898	$	235
Agricultural Operating		4,832		4,982		3,614
Total	$	5,730	$	5,880	$	3,849

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

Loans without a specific valuation allowance
1-4 Family Real Estate	$	121	$	121	$	-
Commercial and Multi-Family Real Estate		446		446		-
Commercial Operating		11		11		-
Total	$	578	$	578	$	-
Loans with a specific valuation allowance
Commercial and Multi-Family Real Estate	$	904	$	904	$	241
Agricultural Operating		5,132		5,282		3,252
Total	$	6,036	$	6,186	$	3,493

The following table provides the average recorded investment in impaired loans for the three month periods ended December 31, 2015 and 2014.

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

1-4 Family Real Estate	$	119	$	374
Commercial and Multi-Family Real Estate		1,347		4,246
Agricultural Real Estate		-		-
Consumer		-		-
Commercial Operating		10		22
Agricultural Operating		5,032		325
Premium Finance		-		-
Total	$	6,508	$	4,967