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

9 Months Ended

Jun. 30, 2017

Receivables [Abstract]

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 and nine months ended June 30, 2017 and 2016:

	Three Months Ended						Nine Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
	(dollars in thousands)
Balance at beginning of period	$	38,705		$	39,843		$	38,124		$	44,489
Acquisition	—			3,662			—			3,662
Accretion	(3,789		)	(2,529		)	(9,767		)	(7,119		)
Reclassification from (to) nonaccretable difference	13,218			—			19,777			(56		)
Balance at end of period	$	48,134		$	40,976		$	48,134		$	40,976

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
1 Represents 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.