Loans (Tables)

3 Months Ended

Dec. 31, 2016

The composition of loans as of December 31, 2016 and September 30, 2016, is as follows:



	December 31, 2016			September 30, 2016
	(dollars in thousands)
Residential real estate	$	1,008,325		$	1,020,958
Commercial real estate	3,852,104			3,754,107
Commercial non real estate	1,643,986			1,673,166
Agriculture	2,206,263			2,168,937
Consumer	71,795			76,273
Other	47,569			42,477
Ending balance	8,830,042			8,735,918
Less: Unamortized discount on acquired loans	(37,304		)	(39,947		)
Unearned net deferred fees and costs and loans in process	(13,631		)	(13,327		)
Total	$	8,779,107		$	8,682,644

Schedule of the Company's nonaccrual loans

The following table presents the Company’s nonaccrual loans at December 31, 2016 and September 30, 2016, excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of December 31, 2016 and September 30, 2016, were $0.1 million and $2.0 million, respectively.



	December 31, 2016		September 30, 2016
Nonaccrual loans	(dollars in thousands)
Residential real estate	$	5,602	$	5,962
Commercial real estate	13,399		13,870
Commercial non real estate	28,203		27,280
Agriculture	65,032		66,301
Consumer	190		223
Total	$	112,426	$	113,636

Schedule of the composition of the loan portfolio by internal risk rating

This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.08 billion at December 31, 2016 and $1.13 billion at September 30, 2016:



As of December 31, 2016	Residential Real Estate		Commercial Real Estate		Commercial Non Real Estate		Agriculture		Consumer		Other		Total
Credit Risk Profile by Internally Assigned Grade	(dollars in thousands)
Grade:
Pass	$	912,174	$	3,432,849	$	1,056,226	$	1,541,184	$	70,709	$	47,569	$	7,060,711
Watchlist	5,175		66,334		40,372		222,682		110		—		334,673
Substandard	10,150		52,111		41,328		145,573		356		—		249,518
Doubtful	95		140		360		206		19		—		820
Ending balance	927,594		3,551,434		1,138,286		1,909,645		71,194		47,569		7,645,722
Loans covered by FDIC loss sharing agreements	68,553		—		—		—		—		—		68,553
Total	$	996,147	$	3,551,434	$	1,138,286	$	1,909,645	$	71,194	$	47,569	$	7,714,275



As of September 30, 2016	Residential Real Estate		Commercial Real Estate		Commercial Non Real Estate		Agriculture		Consumer		Other		Total
Credit Risk Profile by Internally Assigned Grade	(dollars in thousands)
Grade:
Pass	$	919,224	$	3,276,048	$	1,093,913	$	1,514,344	$	75,065	$	42,477	$	6,921,071
Watchlist	4,741		81,148		37,283		204,326		110		—		327,608
Substandard	10,885		57,415		42,319		130,569		417		—		241,605
Doubtful	130		147		395		630		—		—		1,302
Ending balance	934,980		3,414,758		1,173,910		1,849,869		75,592		42,477		7,491,586
Loans covered by FDIC loss sharing agreements	73,272		—		—		—		—		—		73,272
Total	$	1,008,252	$	3,414,758	$	1,173,910	$	1,849,869	$	75,592	$	42,477	$	7,564,858

Schedule of past due loans

The following table presents the Company’s past due loans at December 31, 2016 and September 30, 2016. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.08 billion at December 31, 2016 and $1.13 billion at September 30, 2016.



	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Financing Receivables
As of December 31, 2016	(dollars in thousands)
Residential real estate	$	1,866	$	271	$	2,026	$	4,163	$	923,431	$	927,594
Commercial real estate	4,839		454		5,366		10,659		3,540,775		3,551,434
Commercial non real estate	1,105		5,668		12,210		18,983		1,119,303		1,138,286
Agriculture	6,378		146		8,598		15,122		1,894,523		1,909,645
Consumer	184		24		31		239		70,955		71,194
Other	—		—		—		—		47,569		47,569
Ending balance	14,372		6,563		28,231		49,166		7,596,556		7,645,722
Loans covered by FDIC loss sharing agreements	1,042		512		466		2,020		66,533		68,553
Total	$	15,414	$	7,075	$	28,697	$	51,186	$	7,663,089	$	7,714,275



	30-59 Days Past Due			60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Financing Receivables
As of September 30, 2016	(dollars in thousands)
Residential real estate	$	828		$	548	$	2,063	$	3,439	$	931,541	$	934,980
Commercial real estate	1,765			1,959		3,745		7,469		3,407,289		3,414,758
Commercial non real estate	1,588			5,515		9,594		16,697		1,157,213		1,173,910
Agriculture	(26		)	709		11,549		12,232		1,837,637		1,849,869
Consumer	209			20		28		257		75,335		75,592
Other	—			—		—		—		42,477		42,477
Ending balance	4,364			8,751		26,979		40,094		7,451,492		7,491,586
Loans covered by FDIC loss sharing agreements	1,404			1,173		367		2,944		70,328		73,272
Total	$	5,768		$	9,924	$	27,346	$	43,038	$	7,521,820	$	7,564,858

Schedule of impaired loans

The average recorded investment on impaired loans and interest income recognized on impaired loans for the three months ended December 31, 2016 and 2015, respectively, are as follows:



	Three Months Ended December 31, 2016				Three Months Ended December 31, 2015
	Average Recorded Investment		Interest Income Recognized while on Impaired Status		Average Recorded Investment		Interest Income Recognized while on Impaired Status
	(dollars in thousands)
Residential real estate	$	10,056	$	114	$	12,334	$	149
Commercial real estate	52,022		670		74,411		1,469
Commercial non real estate	48,700		422		56,171		356
Agriculture	107,222		1,867		77,324		2,439
Consumer	374		15		276		17
Total	$	218,374	$	3,088	$	220,516	$	4,430

The following table presents the Company’s impaired loans. This table excludes loans covered by FDIC loss sharing agreements:



	December 31, 2016						September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans:	(dollars in thousands)
With an allowance recorded:
Residential real estate	$	5,941	$	6,595	$	2,944	$	6,244	$	6,886	$	3,000
Commercial real estate	20,794		23,304		2,471		29,965		32,349		3,846
Commercial non real estate	37,168		39,894		7,220		34,526		35,283		6,475
Agriculture	83,901		93,789		13,553		71,501		80,842		12,278
Consumer	345		355		78		383		393		87
Total impaired loans with an allowance recorded	148,149		163,937		26,266		142,619		155,753		25,686



	December 31, 2016						September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans:	(dollars in thousands)
With no allowance recorded:
Residential real estate	3,806		5,499		—		4,120		5,807		—
Commercial real estate	29,245		31,187		—		24,040		24,660		—
Commercial non real estate	10,407		11,935		—		15,299		16,469		—
Agriculture	28,703		30,755		—		30,339		31,907		—
Consumer	7		7		—		12		12		—
Total impaired loans with no allowance recorded	72,168		79,383		—		73,810		78,855		—
Total impaired loans	$	220,317	$	243,320	$	26,266	$	216,429	$	234,608	$	25,686

The following table provides purchased credit impaired loans at December 31, 2016 and September 30, 2016:



	December 31, 2016						September 30, 2016
	Outstanding Balance ¹		Recorded Investment ²		Carrying Value ³		Outstanding Balance ¹		Recorded Investment ²		Carrying Value ³
	(dollars in thousands)
Residential real estate	$	72,421	$	61,846	$	60,980	$	76,696	$	65,737	$	64,830
Commercial real estate	127,464		42,885		41,988		129,615		44,448		43,676
Commercial non real estate	11,482		2,902		2,902		11,588		3,196		3,196
Agriculture	18,696		14,958		14,958		19,174		15,254		15,254
Consumer	957		817		817		1,033		896		896
Total lending	$	231,020	$	123,408	$	121,645	$	238,106	$	129,531	$	127,852

¹Represents the legal balance of ASC 310-30 loans.
² Represents the book balance of ASC 310-30 loans.
³ Represents the book balance of ASC 310-30 loans net of the related allowance for loan and lease losses.

Summary of troubled debt restructurings on accruing and nonaccrual loans

The following table presents the recorded value of the Company’s TDR balances as of December 31, 2016 and September 30, 2016:



	December 31, 2016				September 30, 2016
	Accruing		Nonaccrual		Accruing		Nonaccrual
	(dollars in thousands)
Residential real estate	$	369	$	910	$	370	$	937
Commercial real estate	14,439		2,186		18,250		2,356
Commercial non real estate	7,250		2,624		8,102		4,789
Agriculture	19,789		28,232		19,823		28,688
Consumer	7		8		23		8
Total	$	41,854	$	33,960	$	46,568	$	36,778

The following table presents a summary of all accruing loans restructured in TDRs during the three months ended December 31, 2016 and 2015, respectively:



	Three Months Ended December 31,
	2016					2015
		Recorded Investment					Recorded Investment
	Number	Pre- Modification		Post- Modification		Number	Pre- Modification		Post- Modification
	(dollars in thousands)
Residential real estate
Rate modification	—	$	—	$	—	—	$	—	$	—
Term extension	—	—		—		—	—		—
Payment modification	1	9		9		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	1	9		9		—	—		—
Commercial real estate
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		2	1,898		1,898
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial real estate	—	—		—		2	1,898		1,898
Commercial non real estate
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		1	58		58
Payment modification	2	433		433		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial non real estate	2	433		433		1	58		58
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		8	21,973		21,973
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total agriculture	—	—		—		8	21,973		21,973
Consumer
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total consumer	—	—		—		—	—		—
Total accruing	3	$	442	$	442	11	$	23,929	$	23,929
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	$	—	$	—	—	$	—	$	—

The following table presents a summary of all non-accruing loans restructured in TDRs during the three months ended December 31, 2016 and 2015:



	Three Months Ended December 31,
	2016					2015
		Recorded Investment					Recorded Investment
	Number	Pre- Modification		Post- Modification		Number	Pre- Modification		Post- Modification
	(dollars in thousands)
Residential real estate
Rate modification	—	$	—	$	—	—	$	—	$	—
Term extension	—	—		—		—	—		—
Payment modification	1	21		21		1	187		187
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	1	21		21		1	187		187
Commercial real estate
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial real estate	—	—		—		—	—		—
Commercial Non Real Estate
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		1	396		396
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial non real estate	—	—		—		1	396		396
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total agriculture	—	—		—		—	—		—
Consumer
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total consumer	—	—		—		—	—		—
Total non-accruing	1	$	21	$	21	2	$	583	$	583
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	$	—	$	—	—	$	—	$	—

The table below represents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the three months ended December 31, 2016 and 2015, respectively.



	Three Months Ended December 31,
	2016			2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Residential real estate	—	$	—	2	$	105
Commercial real estate	1	34		—	—
Commercial non real estate	3	1,945		—	—
Agriculture	—	—		—	—
Consumer	1	8		—	—
Total	5	$	1,987	2	$	105