Accounting for Certain Loans Acquired with Deteriorated Credit Quality (Tables)

3 Months Ended

Dec. 31, 2016

Schedule of troubled debt restructurings

The re-assessment of purchased credit impaired loans resulted in the following changes in the accretable yield during the three months ended December 31, 2016 and 2015:



	Three Months Ended December 31,
	2016			2015
	(dollars in thousands)
Balance at beginning of period	$	38,124		$	44,489
Accretion	(2,938		)	(2,329		)
Reclassification from (to) nonaccretable difference	4,572			(278		)
Balance at end of period	$	39,758		$	41,882

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.