CREDIT DISCLOSURES (Tables)

6 Months Ended

Mar. 31, 2016

Loans receivable at March 31, 2016 and September 30, 2015 are as follows:

	March 31, 2016			September 30, 2015
	(Dollars in Thousands)

1-4 Family Real Estate	$	140,000		$	125,021
Commercial and Multi-Family Real Estate		354,794			310,199
Agricultural Real Estate		64,111			64,316
Consumer		35,937			33,527
Commercial Operating		26,909			29,893
Agricultural Operating		42,081			43,626
Premium Finance		121,572			106,505
Total Loans Receivable		785,404			713,087

Less:
Allowance for Loan Losses		(7,431	)		(6,255	)
Net Deferred Loan Origination Fees		(522	)		(577	)
Total Loans Receivable, Net	$	777,451		$	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 and six month periods ended March 31, 2016 and 2015 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, 2016

Allowance for loan losses:
Beginning balance	$	285	$	1,194		$	171		$	20	$	107		$	3,856		$	424		$	609		$	6,666
Provision (recovery) for loan losses		42		790			(17	)		1,039		(62	)		(529	)		171			(261	)		1,173
Charge offs		-		(290	)		-			-		-			-			(137	)		-			(427	)
Recoveries		-		-			-			-		-			-			19			-			19
Ending balance	$	327	$	1,694		$	154		$	1,059	$	45		$	3,327		$	477		$	348		$	7,431

Six Months Ended March 31, 2016

Allowance for loan losses:
Beginning balance	$	278	$	1,187		$	163		$	20	$	28		$	3,537		$	293		$	749		$	6,255
Provision (recovery) for loan losses		49		797			(9	)		1,039		17			(210	)		677			(401	)		1,959
Charge offs		-		(290	)		-			-		-			-			(527	)		-			(817	)
Recoveries		-		-			-			-		-			-			34			-			34
Ending balance	$	327	$	1,694		$	154		$	1,059	$	45		$	3,327		$	477		$	348		$	7,431

Ending balance: individually evaluated for impairment		-		40			-			-		-			2,846			-			-			2,886
Ending balance: collectively evaluated for impairment		327		1,654			154			1,059		45			481			477			348			4,545
Total	$	327	$	1,694		$	154		$	1,059	$	45		$	3,327		$	477		$	348		$	7,431

Loans:
Ending balance: individually evaluated for impairment		114		1,091			-			-		6			3,421			-			-			4,632
Ending balance: collectively evaluated for impairment		139,886		353,703			64,111			35,937		26,903			38,660			121,572			-			780,772
Total	$	140,000	$	354,794		$	64,111		$	35,937	$	26,909		$	42,081		$	121,572		$	-		$	785,404

	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

Asset Classification of Loans Excluding Loans Held for Sale

The asset classification of loans at March 31, 2016 and September 30, 2015 are as follows:

March 31, 2016	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	$	138,882	$	352,195	$	37,627	$	35,817	$	26,245	$	25,232	$	121,572	$	737,570
Watch		1,087		1,992		-		-		573		441		-		4,093
Special Mention		9		-		24,645		120		-		3,173		-		27,947
Substandard		22		607		1,839		-		91		10,389		-		12,948
Doubtful		-		-		-		-		-		2,846		-		2,846
	$	140,000	$	354,794	$	64,111	$	35,937	$	26,909	$	42,081	$	121,572	$	785,404

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 March 31, 2016 and September 30, 2015 are as follows:

March 31, 2016	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	$	16	$	56	$	-	$	72	$	139,906	$	22	$	140,000
Commercial and Multi-Family Real Estate		3,718		-		-		3,718		350,469		607		354,794
Agricultural Real Estate		-		-		-		-		64,111		-		64,111
Consumer		347		17		5		369		35,568		-		35,937
Commercial Operating		1,482		-		-		1,482		25,427		-		26,909
Agricultural Operating		-		-		-		-		38,660		3,421		42,081
Premium Finance		1,361		438		611		2,410		119,162		-		121,572
Total	$	6,924	$	511	$	616	$	8,051	$	773,303	$	4,050	$	785,404

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 March 31, 2016 and September 30, 2015 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
March 31, 2016	(Dollars in Thousands)

Loans without a specific valuation allowance
1-4 Family Real Estate	$	114	$	114	$	-
Commercial and Multi-Family Real Estate		439		439		-
Commercial Operating		6		6		-
Total	$	559	$	559	$	-
Loans with a specific valuation allowance
Commercial and Multi-Family Real Estate	$	652	$	942	$	40
Agricultural Operating		3,421		3,571		2,846
Total	$	4,073	$	4,513	$	2,886

	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 and six month periods ended March 31, 2016 and 2015.

	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
	Average Recorded Investment		Average Recorded Investment		Average Recorded Investment		Average Recorded Investment
	(Dollars in Thousands)

1-4 Family Real Estate	$	116	$	292	$	118	$	333
Commercial and Multi-Family Real Estate		1,257		1,421		1,302		2,834
Agricultural Real Estate		-		-		-		-
Consumer		-		-		-		-
Commercial Operating		7		19		8		20
Agricultural Operating		4,362		2,242		4,697		1,284
Premium Finance		-		-		-		-
Total	$	5,742	$	3,974	$	6,125	$	4,471