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

3 Months Ended

Dec. 31, 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 months ended December 31, 2017 and 2016:

	Three Months Ended
	December 31, 2017			December 31, 2016
	(dollars in thousands)
Balance at beginning of period	$	44,131		$	38,124
Accretion	(3,381		)	(2,938		)
Reclassification from nonaccretable difference	1,168			4,572
Balance at end of period	$	41,918		$	39,758

Schedule of impaired loans

The following table presents the Company’s impaired loans. This table excludes purchased credit impaired loans and loans measured at fair value with changes in fair value reported in earnings of $980.1 million at December 31, 2017 and $1.02 billion at September 30, 2017:

	December 31, 2017						September 30, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(dollars in thousands)
Impaired loans:
With an allowance recorded:
Commercial real estate	$	17,503	$	21,856	$	3,168	$	20,819	$	24,893	$	3,621
Agriculture	62,382		72,426		9,447		79,219		88,268		11,468
Commercial non-real estate	18,428		26,662		5,210		17,950		28,755		4,779
Residential real estate	5,713		6,469		2,731		5,177		5,874		2,581
Consumer	230		237		86		280		287		86
Total impaired loans with an allowance recorded	104,256		127,650		20,642		123,445		148,077		22,535
With no allowance recorded:
Commercial real estate	53,783		93,231		—		16,652		69,677		—
Agriculture	54,806		60,690		—		51,256		64,177		—
Commercial non-real estate	13,415		22,835		—		13,983		38,924		—
Residential real estate	2,070		5,047		—		2,574		9,613		—
Consumer	15		134		—		13		950		—
Total impaired loans with no allowance recorded	124,089		181,937		—		84,478		183,341		—
Total impaired loans	$	228,345	$	309,587	$	20,642	$	207,923	$	331,418	$	22,535

The average recorded investment on impaired loans and interest income recognized on impaired loans for the three months ended December 31, 2017 and 2016, respectively, are as follows:

	Three Months Ended December 31, 2017				Three Months Ended December 31, 2016
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(dollars in thousands)
Commercial real estate	$	54,379	$	1,576	$	52,022	$	670
Agriculture	123,832		982		107,222		1,867
Commercial non-real estate	31,888		451		48,700		422
Residential real estate	7,767		165		10,056		114
Consumer	269		4		374		15
Total	$	218,135	$	3,178	$	218,374	$	3,088

The following table provides purchased credit impaired loans at December 31, 2017 and September 30, 2017:

	December 31, 2017						September 30, 2017
	Outstanding Balance 1		Recorded Investment 2		Carrying Value 3		Outstanding Balance 1		Recorded Investment 2		Carrying Value 3
	(dollars in thousands)
Commercial real estate	$	108,397	$	29,388	$	28,716	$	110,797	$	30,099	$	29,417
Agriculture	10,341		7,181		7,066		10,463		7,174		7,059
Commercial non-real estate	9,764		1,926		1,926		9,825		1,920		1,920
Residential real estate	57,758		49,085		48,987		61,981		52,736		52,540
Consumer	737		601		601		798		666		666
Total lending	$	186,997	$	88,181	$	87,296	$	193,864	$	92,595	$	91,602
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.