Loans (Tables)

9 Months Ended

Jun. 30, 2017

The composition of loans as of June 30, 2017 and September 30, 2016, is as follows:



	June 30, 2017			September 30, 2016
	(dollars in thousands)
Residential real estate	$	953,340		$	1,020,958
Commercial real estate	3,965,599			3,754,107
Commercial non real estate	1,715,630			1,673,166
Agriculture	2,087,113			2,168,937
Consumer	70,028			76,273
Other	44,111			42,477
Ending balance	8,835,821			8,735,918
Less: Unamortized discount on acquired loans	(33,135		)	(39,947		)
Unearned net deferred fees and costs and loans in process	(10,834		)	(13,327		)
Total	$	8,791,852		$	8,682,644

Schedule of the Company's nonaccrual loans

The following table presents the Company’s nonaccrual loans at June 30, 2017 and September 30, 2016, excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of June 30, 2017 and September 30, 2016, were $0.4 million and $2.0 million, respectively.



	June 30, 2017		September 30, 2016
Nonaccrual loans	(dollars in thousands)
Residential real estate	$	5,548	$	5,962
Commercial real estate	13,863		13,870
Commercial non real estate	23,917		27,280
Agriculture	73,351		66,301
Consumer	216		223
Total	$	116,895	$	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 $1.05 billion at June 30, 2017 and $1.13 billion at September 30, 2016:



As of June 30, 2017	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	$	867,159	$	3,548,040	$	1,151,190	$	1,455,712	$	69,088	$	44,111	$	7,135,300
Watchlist	4,606		63,743		36,847		193,703		64		—		298,963
Substandard	8,395		43,540		30,184		168,075		416		—		250,610
Doubtful	486		579		5,282		129		—		—		6,476
Ending balance	880,646		3,655,902		1,223,503		1,817,619		69,568		44,111		7,691,349
Loans covered by FDIC loss sharing agreements	61,789		—		—		—		—		—		61,789
Total	$	942,435	$	3,655,902	$	1,223,503	$	1,817,619	$	69,568	$	44,111	$	7,753,138



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 June 30, 2017 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 $1.05 billion at June 30, 2017 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 June 30, 2017	(dollars in thousands)
Residential real estate	$	1,004	$	606	$	2,322	$	3,932	$	876,714	$	880,646
Commercial real estate	361		1,603		6,019		7,983		3,647,919		3,655,902
Commercial non real estate	1,735		502		21,008		23,245		1,200,258		1,223,503
Agriculture	11,501		1,924		12,181		25,606		1,792,013		1,817,619
Consumer	120		33		42		195		69,373		69,568
Other	—		—		—		—		44,111		44,111
Ending balance	14,721		4,668		41,572		60,961		7,630,388		7,691,349
Loans covered by FDIC loss sharing agreements	190		402		728		1,320		60,469		61,789
Total	$	14,911	$	5,070	$	42,300	$	62,281	$	7,690,857	$	7,753,138



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



	June 30, 2017						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	$	6,029	$	6,764	$	3,134	$	6,244	$	6,886	$	3,000
Commercial real estate	18,795		22,862		4,759		29,965		32,349		3,846
Commercial non real estate	26,422		32,898		6,568		34,526		35,283		6,475
Agriculture	82,982		91,567		10,275		71,501		80,842		12,278
Consumer	382		397		111		383		393		87
Total impaired loans with an allowance recorded	134,610		154,488		24,847		142,619		155,753		25,686

With no allowance recorded:
Residential real estate	2,690		4,517				4,120		5,807		—
Commercial real estate	23,509		24,483		—		24,040		24,660		—
Commercial non real estate	14,994		16,279		—		15,299		16,469		—
Agriculture	52,808		54,611		—		30,339		31,907		—
Consumer	22		24		—		12		12		—
Total impaired loans with no allowance recorded	94,023		99,914		—		73,810		78,855		—
Total impaired loans	$	228,633	$	254,402	$	24,847	$	216,429	$	234,608	$	25,686

The average recorded investment on impaired loans and interest income recognized on impaired loans for the three and nine months ended June 30, 2017 and 2016, respectively, are as follows:



	Three Months Ended								Nine Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status		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	$	9,051	$	112	$	11,463	$	147	$	9,489	$	352	$	11,743	$	439
Commercial real estate	40,939		579		77,907		1,000		45,294		1,794		78,962		3,192
Commercial non real estate	43,224		331		32,560		388		45,424		1,111		37,322		1,162
Agriculture	140,512		1,993		126,806		2,103		127,621		5,186		118,056		5,359
Consumer	415		13		310		13		408		40		314		38
Total	$	234,141	$	3,028	$	249,046	$	3,651	$	228,236	$	8,483	$	246,397	$	10,190

The following table provides purchased credit impaired loans at June 30, 2017 and September 30, 2016:



	June 30, 2017						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	$	66,140	$	56,492	$	56,492	$	76,696	$	65,737	$	64,830
Commercial real estate	120,999		38,221		37,563		129,615		44,448		43,676
Commercial non real estate	10,355		2,393		2,393		11,588		3,196		3,196
Agriculture	12,386		8,963		8,963		19,174		15,254		15,254
Consumer	831		694		694		1,033		896		896
Total lending	$	210,711	$	106,763	$	106,105	$	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 June 30, 2017 and September 30, 2016:



	June 30, 2017				September 30, 2016
	Accruing		Nonaccrual		Accruing		Nonaccrual
	(dollars in thousands)
Residential real estate	$	320	$	594	$	370	$	937
Commercial real estate	5,451		2,168		18,250		2,356
Commercial non real estate	7,430		1,710		8,102		4,789
Agriculture	36,376		41,902		19,823		28,688
Consumer	4		29		23		8
Total	$	49,581	$	46,403	$	46,568	$	36,778

The following table presents a summary of all accruing loans restructured in TDRs during the three months ended June 30, 2017 and 2016, respectively:



	Three Months Ended June 30, 2017					Three Months Ended June 30, 2016
		Recorded Investment					Recorded Investment
	Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification
	(dollars in thousands)
Residential real estate
Rate modification	—	$	—	$	—	—	$	—	$	—
Term extension	—	—		—		1	42		42
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	—	—		—		1	42		42
Commercial real estate
Rate modification	—	—		—		—	—		—
Term extension	1	3,230		3,230		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial real estate	1	3,230		3,230		—	—		—
Commercial non real estate
Rate modification	—	—		—		—	—		—
Term extension	1	542		542		3	57		57
Payment modification	—	—		—		1	878		878
Bankruptcy	—	—		—		—	—		—
Other	1	150		150		—	—		—
Total commercial non real estate	2	692		692		4	935		935
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	3	7,561		7,561		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	3	728		728		—	—		—
Total agriculture	6	8,289		8,289		—	—		—
Consumer
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total consumer	—	—		—		—	—		—
Total accruing	9	$	12,211	$	12,211	5	$	977	$	977
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 accruing loans restructured in TDRs during the nine months ended June 30, 2017 and 2016, respectively:



	Nine Months Ended June 30, 2017					Nine Months Ended June 30, 2016
		Recorded Investment					Recorded Investment
	Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification
	(dollars in thousands)
Residential real estate
Rate modification	—	$	—	$	—	—	$	—	$	—
Term extension	—	—		—		1	42		42
Payment modification	1	9		9		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	1	9		9		1	42		42
Commercial real estate
Rate modification	—	—		—		—	—		—
Term extension	1	3,230		3,230		2	1,898		1,898
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		3	6,714		6,714
Total commercial real estate	1	3,230		3,230		5	8,612		8,612
Commercial non real estate
Rate modification	—	—		—		1	49		49
Term extension	1	542		542		4	115		115
Payment modification	4	526		526		2	948		948
Bankruptcy	—	—		—		—	—		—
Other	1	150		150		3	3,849		3,849
Total commercial non real estate	6	1,218		1,218		10	4,961		4,961
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	5	15,995		15,995		13	26,914		26,914
Payment modification	—	—		—		4	989		989
Bankruptcy	—	—		—		—	—		—
Other	3	728		728		—	—		—
Total agriculture	8	16,723		16,723		17	27,903		27,903
Consumer
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total consumer	—	—		—		—	—		—
Total accruing	16	$	21,180	$	21,180	33	$	41,518	$	41,518
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 June 30, 2017 and 2016:



	Three Months Ended June 30, 2017					Three Months Ended June 30, 2016
		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	50		49
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	—	—		—		1	50		49
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	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial non real estate	—	—		—		—	—		—
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	3	4,351		4,351		1	101		100
Payment modification	—	—		—		4	932		887
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		1	96		96
Total agriculture	3	4,351		4,351		6	1,129		1,083
Consumer
Rate modification	—	—		—		—	—		—
Term extension	—	—		—		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total consumer	—	—		—		—	—		—
Total non-accruing	3	$	4,351	$	4,351	7	$	1,179	$	1,132
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	$	—	$	—	7	$	47	$	—

The following table presents a summary of all non-accruing loans restructured in TDRs during the nine months ended June 30, 2017 and 2016:



	Nine Months Ended June 30, 2017					Nine Months Ended June 30, 2016
		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		2	237		236
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total residential real estate	1	21		21		2	237		236
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	—	—		—		2	760		760
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		—	—		—
Total commercial non real estate	—	—		—		2	760		760
Agriculture
Rate modification	—	—		—		—	—		—
Term extension	9	17,339		17,339		1	101		100
Payment modification	—	—		—		4	932		887
Bankruptcy	—	—		—		—	—		—
Other	—	—		—		1	96		96
Total agriculture	9	17,339		17,339		6	1,129		1,083
Consumer
Rate modification	—	—		—		—	—		—
Term extension	3	21		21		—	—		—
Payment modification	—	—		—		—	—		—
Bankruptcy	—	—		—		1	8		8
Other	—	—		—		—	—		—
Total consumer	3	21		21		1	8		8
Total non-accruing	13	$	17,381	$	17,381	11	$	2,134	$	2,087
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	$	—	$	—	7	$	47	$	—

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 and nine months ended June 30, 2017 and 2016, respectively.



	Three Months Ended						Nine Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Residential real estate	—	$	—	—	$	—	—	$	—	1	$	—
Commercial real estate	—	—		—	—		—	—		—	—
Commercial non real estate	1	—		2	275		1	—		2	275
Agriculture	—	—		1	760		—	—		3	760
Consumer	—	—		—	—		—	—		—	—
Total	1	$	—	3	$	1,035	1	$	—	6	$	1,035