Delaware | 42-1406262 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer☒ | Accelerated filer☐ | Non-accelerated filer☐ | Smaller Reporting Company☐ |
Emerging growth company☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.01 par value | CASH | The NASDAQ Stock Market LLC |
Class: | Outstanding at May 2, 2019: |
Common Stock, $.01 par value | 39,449,882 shares |
Nonvoting Common Stock, $.01 par value | 0 Nonvoting shares |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
(Dollars in Thousands, Except Share Data(1)) | (Unaudited) | ||||||
ASSETS | March 31, 2019 | September 30, 2018 | |||||
Cash and cash equivalents | $ | 156,461 | $ | 99,977 | |||
Investment securities available for sale, at fair value | 1,081,663 | 1,484,160 | |||||
Mortgage-backed securities available for sale, at fair value | 413,493 | 364,065 | |||||
Investment securities held to maturity, at cost | 146,992 | 163,893 | |||||
Mortgage-backed securities held to maturity, at cost | 7,606 | 7,850 | |||||
Loans held for sale | 59,745 | 15,606 | |||||
Loans and leases | 3,437,980 | 2,944,739 | |||||
Allowance for loan and lease losses | (48,672 | ) | (13,040 | ) | |||
Federal Home Loan Bank Stock, at cost | 7,436 | 23,400 | |||||
Accrued interest receivable | 20,281 | 22,016 | |||||
Premises, furniture, and equipment, net | 45,457 | 40,458 | |||||
Rental equipment, net | 140,087 | 107,290 | |||||
Bank-owned life insurance | 88,565 | 87,293 | |||||
Foreclosed real estate and repossessed assets | 29,548 | 31,638 | |||||
Goodwill | 307,464 | 303,270 | |||||
Intangible assets | 60,506 | 70,719 | |||||
Prepaid assets | 26,597 | 27,906 | |||||
Deferred taxes | 19,079 | 18,737 | |||||
Other assets | 49,754 | 35,090 | |||||
Total assets | $ | 6,050,042 | $ | 5,835,067 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
LIABILITIES | |||||||
Noninterest-bearing checking | $ | 3,034,428 | $ | 2,405,274 | |||
Interest-bearing checking | 183,492 | 111,587 | |||||
Savings deposits | 59,978 | 54,765 | |||||
Money market deposits | 56,563 | 51,995 | |||||
Time certificates of deposit | 154,401 | 276,180 | |||||
Wholesale deposits | 1,481,445 | 1,531,186 | |||||
Total deposits | 4,970,307 | 4,430,987 | |||||
Short-term debt | 11,583 | 425,759 | |||||
Long-term debt | 99,800 | 88,963 | |||||
Accrued interest payable | 9,239 | 7,794 | |||||
Accrued expenses and other liabilities | 135,404 | 133,838 | |||||
Total liabilities | 5,226,333 | 5,087,341 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2019 and September 30, 2018, respectively | — | — | |||||
Common stock, $.01 par value; 90,000,000 and 90,000,000 shares authorized, 39,565,496 and 39,192,063 shares issued, 39,450,938 and 39,167,280 shares outstanding at March 31, 2019 and September 30, 2018, respectively | 395 | 393 | |||||
Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2019 and September 30, 2018, respectively | — | — | |||||
Additional paid-in capital | 576,406 | 565,811 | |||||
Retained earnings | 258,600 | 213,048 | |||||
Accumulated other comprehensive loss | (10,264 | ) | (33,111 | ) | |||
Treasury stock, at cost, 114,558 and 24,783 common shares at March 31, 2019 and September 30, 2018, respectively | (4,956 | ) | (1,989 | ) | |||
Total equity attributable to parent | 820,181 | 744,152 | |||||
Noncontrolling interest | 3,528 | 3,574 | |||||
Total stockholders’ equity | 823,709 | 747,726 | |||||
Total liabilities and stockholders’ equity | $ | 6,050,042 | $ | 5,835,067 |
(Dollars in Thousands, Except Share and Per Share Data(1)) | Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Loans and leases, including fees | $ | 73,670 | $ | 17,844 | $ | 134,168 | $ | 34,287 | |||||||
Mortgage-backed securities | 2,861 | 4,047 | 5,559 | 7,805 | |||||||||||
Other investments | 11,763 | 11,480 | 23,543 | 22,136 | |||||||||||
88,294 | 33,371 | 163,270 | 64,228 | ||||||||||||
Interest expense: | |||||||||||||||
Deposits | 14,740 | 2,957 | 25,336 | 4,842 | |||||||||||
FHLB advances and other borrowings | 2,204 | 3,009 | 6,312 | 5,785 | |||||||||||
16,944 | 5,966 | 31,648 | 10,627 | ||||||||||||
Net interest income | 71,350 | 27,405 | 131,622 | 53,601 | |||||||||||
Provision for loan and lease losses | 33,318 | 18,343 | 42,417 | 19,411 | |||||||||||
Net interest income after provision for loan and lease losses | 38,032 | 9,062 | 89,205 | 34,190 | |||||||||||
Noninterest income: | |||||||||||||||
Refund transfer product fees | 31,601 | 33,803 | 31,862 | 33,995 | |||||||||||
Tax advance product fees | 33,038 | 33,838 | 34,723 | 35,785 | |||||||||||
Card fees | 23,052 | 26,856 | 42,403 | 52,103 | |||||||||||
Rental income | 9,890 | — | 20,780 | — | |||||||||||
Loan and lease fees | 925 | 1,042 | 2,173 | 2,334 | |||||||||||
Bank-owned life insurance | 631 | 650 | 1,273 | 1,319 | |||||||||||
Deposit fees | 2,093 | 982 | 4,031 | 1,830 | |||||||||||
Gain (loss) on sale of securities available-for-sale, net (Includes $231 and ($166) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended March 31, 2019 and 2018, respectively and $209 and ($1,176) for the six months ended March 31, 2019 and 2018, respectively) | 231 | (166 | ) | 209 | (1,176 | ) | |||||||||
Gain on sale of loans and leases | 1,085 | — | 1,951 | — | |||||||||||
Loss on foreclosed real estate | (200 | ) | — | (185 | ) | (19 | ) | ||||||||
Other income | 2,679 | 414 | 3,556 | 516 | |||||||||||
Total noninterest income | 105,025 | 97,419 | 142,776 | 126,687 | |||||||||||
Noninterest expense: | |||||||||||||||
Compensation and benefits | 49,164 | 32,172 | 82,174 | 54,512 | |||||||||||
Refund transfer product expense | 7,181 | 9,871 | 7,191 | 9,972 | |||||||||||
Tax advance product expense | 2,225 | 1,474 | 2,677 | 1,754 | |||||||||||
Card processing | 6,971 | 7,190 | 14,056 | 13,730 | |||||||||||
Occupancy and equipment | 7,212 | 4,477 | 13,670 | 9,367 | |||||||||||
Operating lease equipment depreciation | 4,485 | — | 12,251 | — | |||||||||||
Legal and consulting | 4,308 | 3,239 | 8,277 | 5,655 | |||||||||||
Marketing | 585 | 668 | 1,124 | 1,221 | |||||||||||
Data processing | 321 | 243 | 758 | 657 | |||||||||||
Intangible amortization | 5,596 | 2,731 | 9,978 | 4,412 | |||||||||||
Impairment expense | 9,660 | — | 9,660 | — | |||||||||||
Other expense | 12,546 | 6,432 | 22,733 | 11,259 | |||||||||||
Total noninterest expense | 110,254 | 68,497 | 184,549 | 112,539 | |||||||||||
Income before income tax expense | 32,803 | 37,984 | 47,432 | 48,338 | |||||||||||
Income tax (benefit) expense (Includes $58 and ($46) reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, respectively and $52 and ($329) for the six months ended March 31, 2019 and 2018, respectively) | (395 | ) | 6,548 | (2,086 | ) | 12,232 | |||||||||
Net income before noncontrolling interest | 33,198 | 31,436 | 49,518 | 36,106 | |||||||||||
Net income attributable to noncontrolling interest | 1,078 | — | 2,000 | — | |||||||||||
Net income attributable to parent | $ | 32,120 | $ | 31,436 | $ | 47,518 | $ | 36,106 | |||||||
Earnings per common share | |||||||||||||||
Basic | $ | 0.81 | $ | 1.08 | $ | 1.21 | $ | 1.24 | |||||||
Diluted | $ | 0.81 | $ | 1.08 | $ | 1.20 | $ | 1.24 |
(Dollars in Thousands) | Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income before noncontrolling interest | $ | 33,198 | $ | 31,436 | $ | 49,518 | $ | 36,106 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Change in net unrealized gain (loss) on debt securities | 25,089 | (35,993 | ) | 31,260 | (43,472 | ) | |||||||||
(Gain) loss realized in net income | (231 | ) | 166 | (209 | ) | 1,176 | |||||||||
24,858 | (35,827 | ) | 31,051 | (42,296 | ) | ||||||||||
Unrealized gain (loss) on currency translation | 116 | — | (245 | ) | — | ||||||||||
Deferred income tax effect | 6,051 | (8,879 | ) | 7,484 | (11,964 | ) | |||||||||
Total other comprehensive (loss) income | 18,923 | (26,948 | ) | 23,322 | (30,332 | ) | |||||||||
Total comprehensive income | 52,121 | 4,488 | 72,840 | 5,774 | |||||||||||
Total comprehensive income attributable to noncontrolling interest | 1,078 | — | 2,000 | — | |||||||||||
Comprehensive income attributable to parent | $ | 51,043 | $ | 4,488 | $ | 70,840 | $ | 5,774 |
Meta Financial Group, Inc. Stockholders' Equity | |||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||
Balance, December 31, 2018 | $ | 394 | $ | 572,156 | $ | 228,453 | $ | (29,186 | ) | $ | (4,356 | ) | $ | 767,461 | $ | 3,267 | $ | 770,728 | |||||||||||||
Cash dividends declared on common stock ($0.05 per share) | — | — | (1,973 | ) | — | — | (1,973 | ) | — | (1,973 | ) | ||||||||||||||||||||
Issuance of common shares due to restricted stock | 1 | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | — | — | — | — | (600 | ) | (600 | ) | — | (600 | ) | ||||||||||||||||||||
Stock compensation | — | 4,250 | — | — | — | 4,250 | — | 4,250 | |||||||||||||||||||||||
Total other comprehensive income | — | — | — | 18,922 | — | 18,922 | — | 18,922 | |||||||||||||||||||||||
Net income | — | — | 32,120 | — | — | 32,120 | 1,078 | 33,198 | |||||||||||||||||||||||
Net investment by (distribution to) noncontrolling interests | — | — | — | — | — | — | (817 | ) | (817 | ) | |||||||||||||||||||||
Balance, March 31, 2019 | $ | 395 | $ | 576,406 | $ | 258,600 | $ | (10,264 | ) | $ | (4,956 | ) | $ | 820,181 | $ | 3,528 | $ | 823,709 | |||||||||||||
Six Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | 393 | $ | 565,811 | $ | 213,048 | $ | (33,111 | ) | $ | (1,989 | ) | $ | 744,152 | $ | 3,574 | $ | 747,726 | |||||||||||||
Adoption of Accounting Standards Update 2014-09, net of income taxes | — | — | 1,502 | — | — | 1,502 | — | 1,502 | |||||||||||||||||||||||
Adoption of Accounting Standards Update 2016-01 | — | — | 475 | (475 | ) | — | — | — | — | ||||||||||||||||||||||
Cash dividends declared on common stock ($0.10 per share) | — | — | (3,943 | ) | — | — | (3,943 | ) | — | (3,943 | ) | ||||||||||||||||||||
Issuance of common shares due to exercise of stock options | — | 54 | — | — | — | 54 | — | 54 | |||||||||||||||||||||||
Issuance of common shares due to restricted stock | 3 | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||
Issuance of common shares due to ESOP | — | 2,010 | — | — | — | 2,010 | — | 2,010 | |||||||||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | (1 | ) | 1 | — | — | (2,967 | ) | (2,967 | ) | — | (2,967 | ) | |||||||||||||||||||
Stock compensation | — | 8,530 | — | — | — | 8,530 | — | 8,530 | |||||||||||||||||||||||
Total other comprehensive income | — | — | — | 23,322 | — | 23,322 | — | 23,322 | |||||||||||||||||||||||
Net income | — | — | 47,518 | — | — | 47,518 | 2,000 | 49,518 | |||||||||||||||||||||||
Net investment by (distribution to) noncontrolling interests | — | — | — | — | — | — | (2,046 | ) | (2,046 | ) | |||||||||||||||||||||
Balance, March 31, 2019 | $ | 395 | $ | 576,406 | $ | 258,600 | $ | (10,264 | ) | $ | (4,956 | ) | $ | 820,181 | $ | 3,528 | $ | 823,709 |
Meta Financial Group, Inc. Stockholders' Equity | |||||||||||||||||||||||||||||||
Three Months Ended March 31, 2018 | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||
Balance, December 31, 2017 | $ | 290 | $ | 262,678 | $ | 170,578 | $ | 5,782 | $ | (1,623 | ) | $ | 437,705 | $ | — | $ | 437,705 | ||||||||||||||
Cash dividends declared on common stock ($0.04 per share) | — | — | (1,261 | ) | — | — | (1,261 | ) | — | (1,261 | ) | ||||||||||||||||||||
Issuance of common shares due to exercise of stock options | — | 147 | — | — | — | 147 | — | 147 | |||||||||||||||||||||||
Issuance of common shares due to restricted stock | 1 | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | — | (412 | ) | — | — | (43 | ) | (455 | ) | — | (455 | ) | |||||||||||||||||||
Stock compensation | — | 3,078 | — | — | — | 3,078 | — | 3,078 | |||||||||||||||||||||||
Total other comprehensive (loss) | — | — | — | (26,948 | ) | — | (26,948 | ) | — | (26,948 | ) | ||||||||||||||||||||
Net income | — | — | 31,436 | — | — | 31,436 | — | 31,436 | |||||||||||||||||||||||
Balance, March 31, 2018 | $ | 291 | $ | 265,491 | $ | 200,753 | $ | (21,166 | ) | $ | (1,666 | ) | $ | 443,703 | $ | — | $ | 443,703 | |||||||||||||
Six Months Ended March 31, 2018 | |||||||||||||||||||||||||||||||
Balance, September 30, 2017 | $ | 288 | $ | 258,144 | $ | 167,164 | $ | 9,166 | $ | (266 | ) | $ | 434,496 | $ | — | $ | 434,496 | ||||||||||||||
Cash dividends declared on common stock ($0.08 per share) | — | — | (2,517 | ) | — | — | (2,517 | ) | — | (2,517 | ) | ||||||||||||||||||||
Issuance of common shares due to exercise of stock options | — | 147 | — | — | — | 147 | — | 147 | |||||||||||||||||||||||
Issuance of common shares due to restricted stock | 2 | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Issuance of common shares due to ESOP | 1 | 1,605 | — | — | — | 1,606 | — | 1,606 | |||||||||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | — | (726 | ) | — | — | (1,400 | ) | (2,126 | ) | — | (2,126 | ) | |||||||||||||||||||
Stock compensation | — | 6,321 | — | — | — | 6,321 | — | 6,321 | |||||||||||||||||||||||
Total other comprehensive (loss) | — | — | — | (30,332 | ) | — | (30,332 | ) | — | (30,332 | ) | ||||||||||||||||||||
Net income | — | — | 36,106 | — | — | 36,106 | — | 36,106 | |||||||||||||||||||||||
Balance, March 31, 2018 | $ | 291 | $ | 265,491 | $ | 200,753 | $ | (21,166 | ) | $ | (1,666 | ) | $ | 443,703 | $ | — | $ | 443,703 |
Six Months Ended March 31, | |||||||
(Dollars in Thousands) | 2019 | 2018 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 49,518 | $ | 36,106 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation, amortization and accretion, net | 28,933 | 19,183 | |||||
Stock compensation | 8,530 | 6,321 | |||||
Provision (recovery): | |||||||
Loan and lease losses | 42,417 | 19,411 | |||||
Deferred taxes | (7,811 | ) | 126 | ||||
Loans held for sale: | |||||||
Originations | (42,961 | ) | — | ||||
Purchases | (5,940 | ) | — | ||||
Proceeds from sales | 36,461 | — | |||||
Net change | 8,760 | — | |||||
Fair value adjustment of foreclosed real estate | — | 23 | |||||
Net realized (gain) loss: | |||||||
Other assets | (46 | ) | (15 | ) | |||
Foreclosed real estate or other assets | 185 | 19 | |||||
Available for sale securities, net | (209 | ) | 1,176 | ||||
Loans held for sale | (1,650 | ) | — | ||||
Leases receivable and rental equipment | (1,985 | ) | — | ||||
Net change: | |||||||
Other assets | (16,226 | ) | (14,472 | ) | |||
Accrued interest payable | 1,445 | (965 | ) | ||||
Accrued expenses and other liabilities | 21,951 | 36,779 | |||||
Accrued interest receivable | 1,735 | 1,776 | |||||
Change in bank-owned life insurance value | (1,272 | ) | (1,319 | ) | |||
Impairment on rental equipment | 6,194 | — | |||||
Impairment of intangibles | 111 | — | |||||
Net cash provided by operating activities | 128,140 | 104,149 | |||||
Cash flows from investing activities: | |||||||
Available for sale securities: | |||||||
Purchases | (222,436 | ) | (323,995 | ) | |||
Proceeds from sales | 534,779 | 126,373 | |||||
Proceeds from maturities and principal repayments | 66,417 | 71,652 | |||||
Held to maturity: | |||||||
Proceeds from maturities and principal repayments | 16,225 | 19,863 | |||||
Loans and leases: | |||||||
Purchases | (144,104 | ) | (88,986 | ) | |||
Proceeds from sales | 10,857 | 9,582 | |||||
Net change | (399,380 | ) | (143,766 | ) | |||
Proceeds from sales of foreclosed real estate or other assets | 1,905 | 122 | |||||
Federal Home Loan Bank stock: | |||||||
Purchases | (358,516 | ) | (477,604 | ) | |||
Redemption | 374,480 | 520,880 | |||||
Rental equipment: | |||||||
Purchases | (58,968 | ) | — | ||||
Proceeds from sales | 4,962 | — | |||||
Net change | 674 | — | |||||
Premises and equipment: | |||||||
Purchases | (8,815 | ) | (3,689 | ) | |||
Proceeds from sales | 101 | — | |||||
Net cash (used in) investing activities | (181,819 | ) | (289,568 | ) | |||
Cash flows from financing activities: | |||||||
Net change: | |||||||
Checking, savings, and money market deposits | 712,896 | 464,084 | |||||
Time deposits | (121,887 | ) | (51,925 | ) | |||
Wholesale deposits | (49,777 | ) | (295,086 | ) | |||
FHLB and other borrowings | — | (385,000 | ) | ||||
Federal funds | (422,000 | ) | (703,000 | ) | |||
Securities sold under agreements to repurchase | (890 | ) | (758 | ) |
Net investment by (distribution to) noncontrolling interests | (2,046 | ) | — | ||||
Proceeds from other liabilities | 5,027 | — | |||||
Principal payments: | |||||||
Other liabilities | (6,032 | ) | — | ||||
Capital lease obligations | (40 | ) | (31 | ) | |||
Cash dividends paid | (3,943 | ) | (2,517 | ) | |||
Purchase of shares by ESOP | 2,010 | 1,606 | |||||
Issuance of restricted stock | 3 | 2 | |||||
Proceeds from exercise of stock options & issuance of common stock | 54 | 147 | |||||
Shares repurchased for tax withholdings on stock compensation | (2,967 | ) | (2,126 | ) | |||
Net cash provided by (used in) financing activities | 110,408 | (974,604 | ) | ||||
Effect of exchange rate changes on cash | (245 | ) | — | ||||
Net change in cash and cash equivalents | 56,484 | (1,160,023 | ) | ||||
Cash and cash equivalents at beginning of year | 99,977 | 1,267,586 | |||||
Cash and cash equivalents at end of year | $ | 156,461 | $ | 107,563 |
Six Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Supplemental disclosure of cash flow information | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 18,389 | $ | 9,662 | |||
Income taxes | 1,218 | 3,966 | |||||
Franchise taxes | 73 | 66 | |||||
Other taxes | 465 | 153 | |||||
Supplemental schedule of non-cash investing activities: | |||||||
Transfers | |||||||
Loans and leases to foreclosed real estate or other assets | — | (29,922 | ) | ||||
Loans transferred to held for sale | 39,452 | — | |||||
Purchases/Sales of investment securities accrued, not settled | |||||||
Purchases - Available for sale | — | — | |||||
Securities transferred from held-to-maturity to available-for-sale | — | (306,000 | ) | ||||
Short and long term debt transferred from other liabilities | 20,026 | — |
– | ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments |
– | ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
– | ASU 2017-01, Clarifying the Definition of a Business |
– | ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
– | ASU 2017-05, Other Income - Gains and Losses from Derecognition of Non-Financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and accounting for Partial Sales of Non-Financial Assets |
– | ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
(Dollars in Thousands) | Estimated fair value as previously reported(a) | Measurement period adjustments | Fair value as adjusted | ||||||||
Rental Equipment | $ | 98,977 | $ | (3,355 | ) | $ | 95,622 | ||||
Intangible assets | 28,253 | (117 | ) | 28,136 | |||||||
Goodwill | 204,547 | 4,194 | 208,742 | ||||||||
Accrued expenses and other liabilities | 88,301 | 723 | 89,024 | ||||||||
Net other assets | 55,464 | — | 55,464 | ||||||||
Noncontrolling interest | 3,167 | — | 3,167 | ||||||||
Purchase price | 295,773 | — | 295,773 |
Increase (Decrease) | ||||
Balance Sheet: | (Dollars in Thousands) | |||
Operating lease equipment | $ | (12,589 | ) | |
Goodwill | 1,968 | |||
Other assets | (394 | ) | ||
Liabilities | (4,461 | ) | ||
Total balance sheet impact | $ | (6,554 | ) | |
Regulatory capital impact | $ | (8,522 | ) | |
Income (Expense) | ||||
Income Statement: | ||||
Rental income | $ | 1,633 | ||
Other income | 315 | |||
Impairment | (9,549 | ) | ||
Income tax benefit | 1,047 | |||
Impact to net income | $ | (6,554 | ) |
March 31, 2019 | September 30, 2018 | ||||||
National Lending | (Dollars in Thousands) | ||||||
Asset based lending | $ | 572,210 | $ | 477,917 | |||
Factoring | 287,955 | 284,221 | |||||
Lease financing | 321,414 | 265,315 | |||||
Insurance premium finance | 307,875 | 337,877 | |||||
SBA/USDA | 77,481 | 59,374 | |||||
Other commercial finance | 98,956 | 85,145 | |||||
Commercial finance | 1,665,891 | 1,509,849 | |||||
Consumer credit products | 139,617 | 80,605 | |||||
Other consumer finance | 170,824 | 189,756 | |||||
Consumer finance(1) | 310,441 | 270,361 | |||||
Tax services | 84,824 | 1,073 | |||||
Warehouse finance(1) | 186,697 | 65,000 | |||||
Total National Lending | 2,247,853 | 1,846,283 | |||||
Community Banking | |||||||
Commercial real estate and operating | 869,917 | 790,890 | |||||
Consumer one-to-four family real estate and other | 257,079 | 247,318 | |||||
Agricultural real estate and operating | 60,167 | 60,498 | |||||
Total Community Banking | 1,187,163 | 1,098,706 | |||||
Total gross loans and leases | 3,435,016 | 2,944,989 | |||||
Allowance for loan and lease losses | (48,672 | ) | (13,040 | ) | |||
Net deferred loan origination fees (costs) | 2,964 | (250 | ) | ||||
Total loans and leases, net(2) | $ | 3,389,308 | $ | 2,931,699 |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2019 | March 31, 2018 | March 31, 2019 | March 31, 2018 | ||||||||||||
Loans Purchased | (Dollars in Thousands) | ||||||||||||||
Loans held for sale | $ | 5,940 | $ | — | $ | 5,940 | $ | — | |||||||
Loans held for investment: | |||||||||||||||
Total National Lending | 10,621 | — | 125,591 | 72,751 | |||||||||||
Total Community Banking | 7,432 | 13,823 | 18,513 | 16,235 | |||||||||||
Total purchases | 23,933 | 13,823 | 150,044 | 88,986 | |||||||||||
Loans Sold | |||||||||||||||
Loans held for sale | 28,051 | — | 34,904 | — | |||||||||||
Loans held for investment: | |||||||||||||||
Total Community Banking | 10,479 | 3,666 | 10,857 | 9,582 | |||||||||||
Total sales | $ | 38,530 | $ | 3,666 | $ | 45,761 | $ | 9,582 |
March 31, 2019 | September 30, 2018 | ||||||
(Dollars in Thousands) | |||||||
Minimum lease payments receivable | $ | 366,361 | $ | 301,835 | |||
Estimated residual value of leased equipment | 11,328 | 12,406 | |||||
Unamortized initial direct costs | 4,190 | 1,806 | |||||
Premium on acquired leases | 9 | 26 | |||||
Unearned income | (56,266 | ) | (48,949 | ) | |||
Net investment in direct financing and sales-type leases | $ | 325,622 | $ | 267,124 |
As of March 31, 2019 | |||
(Dollars in thousands) | |||
Remaining in 2019 | $ | 69,316 | |
2020 | 115,307 | ||
2021 | 90,333 | ||
2022 | 55,328 | ||
2023 | 29,147 | ||
2024 and thereafter | 6,930 | ||
Total | $ | 366,361 |
Allowance for loan and lease losses: | Beginning balance | Provision (recovery) for loan and lease losses | Charge-offs | Recoveries | Ending balance | ||||||||||||||
Three Months Ended March 31, 2019 | (Dollars in Thousands) | ||||||||||||||||||
National Lending | |||||||||||||||||||
Asset based lending | $ | 2,065 | $ | 1,365 | $ | — | $ | 69 | $ | 3,499 | |||||||||
Factoring | 1,062 | 1,799 | (1,125 | ) | 25 | 1,761 | |||||||||||||
Lease financing | 1,084 | 1,671 | (1,044 | ) | 254 | 1,965 | |||||||||||||
Insurance premium finance | 972 | 1,797 | (1,877 | ) | 27 | 919 | |||||||||||||
SBA/USDA | 253 | 221 | — | — | 474 | ||||||||||||||
Other commercial finance | 291 | 234 | — | — | 525 | ||||||||||||||
Commercial finance | 5,727 | 7,087 | (4,046 | ) | 375 | 9,143 | |||||||||||||
Consumer credit products | 1,151 | 163 | — | — | 1,314 | ||||||||||||||
Other consumer finance | 4,222 | 3,336 | (2,456 | ) | 28 | 5,130 | |||||||||||||
Consumer finance | 5,373 | 3,499 | (2,456 | ) | 28 | 6,444 | |||||||||||||
Tax services | 1,546 | 22,473 | (1 | ) | 84 | 24,102 | |||||||||||||
Warehouse finance | 176 | 9 | — | — | 185 | ||||||||||||||
Total National Lending | 12,822 | 33,068 | (6,503 | ) | 487 | 39,874 | |||||||||||||
Community Banking | |||||||||||||||||||
Commercial real estate and operating | 6,570 | 103 | — | — | 6,673 | ||||||||||||||
Consumer one-to-four family real estate and other | 719 | 259 | (20 | ) | — | 958 | |||||||||||||
Agricultural real estate and operating | 1,179 | (112 | ) | — | 100 | 1,167 | |||||||||||||
Total Community Banking | 8,468 | 250 | (20 | ) | 100 | 8,798 | |||||||||||||
Total | $ | 21,290 | $ | 33,318 | $ | (6,523 | ) | $ | 587 | $ | 48,672 |
Allowance for loan and lease losses: | Beginning balance | Provision (recovery) for loan and lease losses | Charge-offs | Recoveries | Ending balance | ||||||||||||||
Six Months Ended March 31, 2019 | (Dollars in Thousands) | ||||||||||||||||||
National Lending | |||||||||||||||||||
Asset based lending | $ | 107 | $ | 3,528 | $ | (262 | ) | $ | 126 | $ | 3,499 | ||||||||
Factoring | 64 | 3,022 | (1,375 | ) | 50 | 1,761 | |||||||||||||
Lease financing | 59 | 1,542 | (1,462 | ) | 1,826 | 1,965 | |||||||||||||
Insurance premium finance | 1,031 | 1,890 | (2,085 | ) | 83 | 919 | |||||||||||||
SBA/USDA | 13 | 461 | — | — | 474 | ||||||||||||||
Other commercial finance | 28 | 497 | — | — | 525 | ||||||||||||||
Commercial finance | 1,302 | 10,940 | (5,184 | ) | 2,085 | 9,143 | |||||||||||||
Consumer credit products | 785 | 529 | — | — | 1,314 | ||||||||||||||
Other consumer finance | 2,820 | 6,359 | (4,079 | ) | 30 | 5,130 | |||||||||||||
Consumer finance | 3,605 | 6,888 | (4,079 | ) | 30 | 6,444 | |||||||||||||
Tax services | — | 23,969 | (43 | ) | 176 | 24,102 | |||||||||||||
Warehouse finance | 65 | 120 | — | — | 185 | ||||||||||||||
Total National Lending | 4,972 | 41,917 | (9,306 | ) | 2,291 | 39,874 | |||||||||||||
Community Banking | |||||||||||||||||||
Commercial real estate and operating | 6,220 | 453 | — | — | 6,673 | ||||||||||||||
Consumer one-to-four family real estate and other | 632 | 346 | (20 | ) | — | 958 | |||||||||||||
Agricultural real estate and operating |