REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 17. Segment Reporting to the Condensed Consolidated Financial Statements.


(Dollars in Thousands)	Consumer						Commercial						Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2020		2019		2020		2019		2020		2019			2020		2019
Net interest income⁽¹⁾	$	20,165	$	19,829	$	37,026	$	37,965	$	10,546	$	13,556		$	67,737	$	71,350
Noninterest income:
Refund transfer product fees	28,939		31,601		—		—		—		—			28,939		31,601
Tax advance product fees⁽¹⁾	29,536		33,038		—		—		—		—			29,536		33,038
Payment card and deposit fees	23,156		24,671		—		—		—		—			23,156		24,671
Other bank and deposit fees	—		—		268		283		113		191			381		474
Rental income⁽¹⁾	5		—		11,094		9,890		1		—			11,100		9,890
Gain on sale of securities available-for-sale, net⁽¹⁾	—		—		—		—		—		231			—		231
Gain on divestitures⁽¹⁾	—		—		—		—		19,275		—			19,275		—
(Loss) gain on sale of other⁽¹⁾	(259)		58		2,579		2,151		5		21			2,325		2,230
Other income⁽¹⁾	1,831		389		1,582		1,331		2,388		1,170			5,801		2,890
Total noninterest income	83,208		89,757		15,523		13,655		21,782		1,613			120,513		105,025
Revenue	$	103,373	$	109,586	$	52,549	$	51,620	$	32,328	$	15,169		$	188,250	$	176,375

⁽¹⁾These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.



(Dollars in Thousands)	Consumer						Commercial						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2020		2019		2020		2019		2020		2019			2020		2019
Net interest income⁽¹⁾	$	40,177	$	33,503	$	76,762	$	73,916	$	15,449	$	24,203		$	132,388	$	131,622
Noninterest income:
Refund transfer product fees	29,131		31,862		—		—		—		—			29,131		31,862
Tax advance product fees⁽¹⁾	31,812		34,723		—		—		—		—			31,812		34,723
Payment card and deposit fees	44,655		45,477		—		—		—		—			44,655		45,477
Other bank and deposit fees	—		—		546		576		322		381			868		957
Rental income⁽¹⁾	9		—		22,128		20,780		1,314		—			23,451		20,780
Gain on sale of securities available-for-sale, net⁽¹⁾	—		—		—		—		—		209			—		209
Gain on divestitures⁽¹⁾	—		—		—		—		19,275		—			19,275		—
(Loss) gain on sale of other⁽¹⁾	(19)		58		4,917		3,376		(5,142)		62			(244)		3,496
Other income⁽¹⁾	2,384		527		2,911		2,855		3,752		1,890			9,047		5,272
Total noninterest income	107,972		112,648		30,502		27,587		19,521		2,541			157,995		142,776
Revenue	$	148,149	$	146,151	$	107,264	$	101,503	$	34,970	$	26,744		$	290,383	$	274,398

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period; therefore, the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities.

Refund Transfer Product Fees

Refund transfer fees are specific to the tax products offered by Refund Advantage and EPS. These fees are for products, services such as payment processing, and product referral commissions. Software partner fees paid and/or incurred are recorded on a net basis. The Company’s obligation for product fees and commissions is satisfied at the time of the product delivery and obligation for payment processing is satisfied at the time of processing. The transaction price for such activity is based upon stand-alone fees within the terms and conditions. At March 31, 2020 and September 30, 2019, there were no receivables related to refund transfer fees, which reflect earned revenue with unconditional rights to payment for product fee income. All refund transfer fees are recorded within the Consumer reporting segment.

Card Fees

Card fees relate to MPS, Community Bank, Refund Advantage and EPS products. These fees are for products and services such as card activation, product support, processing, and servicing. The Company earns these fees based upon the underlying terms and conditions with each cardholder over the contract term. Agreements with the Company’s cardholders are considered daily service contracts as they are not fixed in duration. The Company’s obligation for card activation and product support fees is satisfied at the time of product delivery, while the obligation for processing and servicing is satisfied over the course of each month. The transaction price for such activity is based upon the stand-alone fees within the terms and conditions of the cardholder agreements. Card fee revenue also includes income from sponsorships, associations and networks, and interchange income. Sponsorship income relates to fees charged to the Company’s ATM sponsorship partners, where the obligation is satisfied over the course of each month. Association and network income reflect incentives, performance bonuses and rebates with MasterCard and Visa. The obligation for such income is satisfied at the time when certain thresholds of transaction volume have been met. Interchange income is generated by cardholder activity, and therefore the Company’s obligations are satisfied as activity occurs. The transaction price for such activity is based on underlying rates and activity thresholds within the terms and conditions of the applicable agreements. Card fee revenue also includes breakage revenue. Breakage represents the estimated amount that will not be redeemed by the holder of unregistered, unused prepaid cards for goods or services. Breakage revenue is recognized ratably over the expected customer usage period and is an estimate based on cardholder behavior and breakage rates. Breakage is also impacted by escheatment laws. Card fees are recorded within both the Consumer and Commercial reporting segments, the substantial majority of which is derived from the Company's payments divisions and reported in payments card and deposit fees. Card fees related to the Community Bank are reported within other bank and deposit fees.

Bank and Deposit Fees

Fees are earned on depository accounts for consumer and commercial customers and include fees for account services, overdraft services, safety deposit box rentals, and event-driven services (i.e. returned checks, ATM surcharge, card replacement, wire transfers, and stop pays). The Company’s obligation for event-driven services is satisfied at the time of the event when the service is delivered, while its obligation for account services is satisfied over the course of each month. The Company’s obligation for overdraft services is satisfied at the time of overdraft. The transaction price for such activity is based upon stand-alone fees within the terms and conditions of the deposit agreements. Bank and deposit fees are recorded within both the Consumer and Commercial reporting segments, the majority of which are derived from the Company's payments divisions. Bank and deposit fees related to the Community Bank are reported within other bank and deposit fees.

Principal vs Agent

The Consumer reporting segment includes principal/agent relationships. Within this segment, MPS relationships are recorded on a gross basis within the Consolidated Statements of Operations, as Meta is the principal in the contract, with the exception of association/network contracts and partner/processor contracts for prepaid cards, which are recorded on a net basis within the Consolidated Statements of Operations as Meta is the agent in these contracts. Also within this segment, Tax Service relationships are recorded on a gross basis within the Consolidated Statements of Operations, as Meta is the principal in the contract, with the exception of contracts with software providers and merchants, which are recorded on a net basis within the Consolidated Statements of Operations as Meta is the agent in these contracts.