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

12 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Troubled debt restructurings on financing receivables

The re-assessment of purchased credit impaired loans resulted in the following changes in the accretable yield during the fiscal years ended September 30, 2018, 2017 and 2016.

	Fiscal Years Ended September 30,
	2018			2017			2016
	(dollars in thousands)
Balance at beginning of period	$	44,131		$	38,124		$	44,489
Acquisition	—			—			3,662
Accretion	(13,193		)	(13,847		)	(9,971		)
Reclassification from nonaccretable difference	4,035			19,854			(56		)
Balance at end of period	$	34,973		$	44,131		$	38,124

Summary of impaired financing receivables

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 $865.4 million for 2018 and $1.02 billion for 2017.

	September 30, 2018						September 30, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans:	(dollars in thousands)
With an allowance recorded:
Commercial real estate	$	25,136	$	25,223	$	3,668	$	20,819	$	24,893	$	3,621
Agriculture	60,053		76,874		9,590		79,219		88,268		11,468
Commercial non-real estate	14,177		17,241		4,508		17,950		28,755		4,779
Residential real estate	4,509		5,153		2,210		5,177		5,874		2,581
Consumer	160		165		61		280		287		86
Total impaired loans with an allowance recorded	104,035		124,656		20,037		123,445		148,077		22,535
With no allowance recorded:
Commercial real estate	15,764		58,141		—		16,652		69,677		—
Agriculture	77,172		80,355		—		51,256		64,177		—
Commercial non-real estate	8,905		18,047		—		13,983		38,924		—
Residential real estate	2,177		4,574		—		2,574		9,613		—
Consumer	1		118		—		13		950		—
Total impaired loans with no allowance recorded	104,019		161,235		—		84,478		183,341		—
Total impaired loans	$	208,054	$	285,891	$	20,037	$	207,923	$	331,418	$	22,535

The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2018, 2017 and 2016.

	Fiscal Years Ended September 30,
	2018				2017				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
	(dollars in thousands)
Commercial real estate	$	54,434	$	2,815	$	42,347	$	2,163	$	70,266	$	3,876
Agriculture	127,483		4,767		131,026		5,503		100,052		6,502
Commercial non-real estate	28,938		1,405		41,489		1,485		45,592		1,971
Residential real estate	7,156		452		8,900		453		11,773		576
Consumer	219		14		369		47		309		55
Total	$	218,230	$	9,453	$	224,131	$	9,651	$	227,992	$	12,980

The following table provides purchased impaired loans at September 30, 2018 and 2017.

	September 30, 2018						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	$	100,761	$	27,001	$	26,322	$	110,797	$	30,099	$	29,417
Agriculture	4,841		2,815		2,551		10,463		7,174		7,059
Commercial non-real estate	7,475		416		416		9,825		1,920		1,920
Residential real estate	46,646		40,025		39,763		61,981		52,736		52,540
Consumer	656		588		588		798		666		666
Total lending	$	160,379	$	70,845	$	69,640	$	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.