
	March 31, 2020		September 30, 2019
	(dollars in thousands)
Commercial real estate	$	5,222,819	$	5,092,410
Agriculture	1,881,792		2,008,644
Commercial non-real estate	1,699,197		1,719,956
Residential real estate	820,759		812,208
Consumer	52,640		51,925
Other	39,908		47,541
Ending balance	9,717,115		9,732,684
Less: Unamortized discount on acquired loans	(10,468)		(13,655)
Unearned net deferred fees and costs and loans in process	(13,352)		(12,266)
Total	$	9,693,295	$	9,706,763

The loan segments above include loans covered by a FDIC non-commercial loss sharing agreement totaling $29.7 million and $31.9 million as of March 31, 2020 and September 30, 2019, respectively, residential real estate loans held for sale totaling $4.3 million and $7.4 million at March 31, 2020 and September 30, 2019, respectively, and $792.1 million and $813.0 million of loans accounted for at fair value at March 31, 2020 and September 30, 2019, respectively.

Unearned net deferred fees and costs totaled $13.7 million and $13.9 million as of March 31, 2020 and September 30, 2019, respectively. Loans in process represent loans that have been funded as of the balance sheet dates but not classified into a loan category and loan payments received as of the balance sheet dates that have not been applied to individual loan accounts. Loans in process totaled $(0.4) million and $(1.6) million at March 31, 2020 and September 30, 2019, respectively.

Principal balances of residential real estate loans sold totaled $68.4 million and $46.8 million for the three months ended March 31, 2020 and 2019, respectively, and $175.4 million and $100.7 million for the six months ended March 31, 2020 and 2019, respectively.

Interest income on loans is accrued daily on the outstanding balances. A loan is placed on nonaccrual status when management believes, after considering collection efforts and other factors, the borrowers' condition is such that collection of interest is doubtful, which is generally 90 days past due. When loans are placed on nonaccrual status, accrual of interest is discontinued and interest receivable is reversed against interest income in the current period. Interest payments received thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest.

The following table presents the Company’s nonaccrual loans at March 31, 2020 and September 30, 2019, excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of March 31, 2020 and September 30, 2019, were $2.3 million and $11.2 million, respectively.


	March 31, 2020		September 30, 2019
	(dollars in thousands)
Nonaccrual loans
Commercial real estate	$	41,541	$	14,973
Agriculture	143,198		77,880
Commercial non-real estate	21,334		9,502
Residential real estate	4,437		2,661
Consumer	97		74
Total	$	210,607	$	105,090

The Company assigns all non-consumer loans a credit quality risk rating. These ratings are Pass, Watch, Substandard, Doubtful and Loss. Loans with a Pass and Watch rating represent those loans not classified on the Company’s rating scale as problem credits, with loans with a Watch rating being monitored and updated at least quarterly by management. Substandard loans are those where a well-defined weakness has been identified that may put full collection of contractual debt at risk. Doubtful loans are those where a well-defined weakness has been identified and a loss of contractual debt is probable. Substandard and doubtful loans are monitored and updated monthly. All non-consumer loan risk ratings are monitored by management and updated as deemed appropriate. The Company generally does not risk rate residential real estate or consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans.

The following table presents the composition of the loan portfolio by internally assigned grade as of March 31, 2020 and September 30, 2019. 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 $792.1 million at March 31, 2020 and $813.0 million at September 30, 2019.


As of March 31, 2020	Commercial Real Estate		Agriculture		Commercial Non-Real Estate		Residential Real Estate ¹		Consumer ¹		Other		Total
	(dollars in thousands)
Credit Risk Profile by Internally Assigned Grade
Grade:
Pass	$	4,478,193	$	1,157,671	$	1,431,706	$	776,696	$	51,657	$	39,908	$	7,935,831
Watchlist	104,941		229,606		28,859		986		728		—		365,120
Substandard	132,937		345,674		92,849		10,694		122		—		582,276
Doubtful	51		1,437		99		16		4		—		1,607
Loss	—		—		—		—		—		—		—
Ending balance	4,716,122		1,734,388		1,553,513		788,392		52,511		39,908		8,884,834
Loans covered by a FDIC loss sharing agreement	—		—		—		29,691		—		—		29,691
Total	$	4,716,122	$	1,734,388	$	1,553,513	$	818,083	$	52,511	$	39,908	$	8,914,525
¹ The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans.


As of September 30, 2019	Commercial Real Estate		Agriculture		Commercial Non-Real Estate		Residential Real Estate ¹		Consumer ¹		Other		Total
	(dollars in thousands)
Credit Risk Profile by Internally Assigned Grade
Grade:
Pass	$	4,433,530	$	1,346,436	$	1,424,357	$	763,797	$	50,796	$	47,541	$	8,066,457
Watchlist	85,256		179,965		103,514		6,297		755		—		375,787
Substandard	54,242		322,327		42,048		6,863		205		—		425,685
Doubtful	56		5,811		296		55		2		—		6,220
Loss	—		—		—		—		—		—		—
Ending balance	4,573,084		1,854,539		1,570,215		777,012		51,758		47,541		8,874,149
Loans covered by a FDIC loss sharing agreement	—		—		—		31,891		—		—		31,891
Total	$	4,573,084	$	1,854,539	$	1,570,215	$	808,903	$	51,758	$	47,541	$	8,906,040
¹ The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans.

The following table presents the Company’s past due loans at March 31, 2020 and September 30, 2019. 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 $792.1 million at March 31, 2020 and $813.0 million at September 30, 2019.


	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Financing Receivables
	(dollars in thousands)
As of March 31, 2020
Commercial real estate	$	25,351	$	4,056	$	13,752	$	43,159	$	4,672,963	$	4,716,122
Agriculture	30,196		10,160		60,176		100,532		1,633,856		1,734,388
Commercial non-real estate	2,538		956		20,497		23,991		1,529,522		1,553,513
Residential real estate	3,702		252		2,550		6,504		781,888		788,392
Consumer	42		5		29		76		52,435		52,511
Other	—		—		—		—		39,908		39,908
Ending balance	61,829		15,429		97,004		174,262		8,710,572		8,884,834
Loans covered by a FDIC loss sharing agreement	1,201		319		757		2,277		27,414		29,691
Total	$	63,030	$	15,748	$	97,761	$	176,539	$	8,737,986	$	8,914,525


	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Financing Receivables
	(dollars in thousands)
As of September 30, 2019
Commercial real estate	$	3,587	$	570	$	2,475	$	6,632	$	4,566,452	$	4,573,084
Agriculture	13,411		1,267		33,089		47,767		1,806,772		1,854,539
Commercial non-real estate	3,932		120		4,424		8,476		1,561,739		1,570,215
Residential real estate	311		676		939		1,926		775,086		777,012
Consumer	61		110		7		178		51,580		51,758
Other	—		—		—		—		47,541		47,541
Ending balance	21,302		2,743		40,934		64,979		8,809,170		8,874,149
Loans covered by a FDIC loss sharing agreement	536		410		331		1,277		30,614		31,891
Total	$	21,838	$	3,153	$	41,265	$	66,256	$	8,839,784	$	8,906,040

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 $792.1 million at March 31, 2020 and $813.0 million at September 30, 2019.


	March 31, 2020										September 30, 2019
	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	$	60,619	$	61,828	$	7,020	$	26,003	$	26,297	$	4,159
Agriculture	35,013		36,267		8,136		98,392		104,350		8,234
Commercial non-real estate	34,227		37,737		8,601		21,331		21,777		6,062
Residential real estate	5,426		5,923		2,115		3,829		4,311		1,795
Consumer	125		133		36		207		214		97
Total impaired loans with an allowance recorded	135,410		141,888		25,908		149,762		156,949		20,347
With no allowance recorded:
Commercial real estate	72,060		110,873		—		28,272		66,631		—
Agriculture	312,866		331,126		—		231,087		255,308		—
Commercial non-real estate	59,250		67,488		—		21,579		31,414		—
Residential real estate	5,475		7,870		—		3,290		5,454		—
Consumer	2		110		—		1		108		—
Total impaired loans with no allowance recorded	449,653		517,467		—		284,229		358,915		—
Total impaired loans	$	585,063	$	659,355	$	25,908	$	433,991	$	515,864	$	20,347


	Three Months Ended March 31,															Six Months Ended March 31,
	2020						2019						2020					2019
	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)
Commercial real estate	$	112,623	$	1,287	$	34,475	$	345	$	93,174	$	3,666		$	36,616	$	697
Agriculture	369,598		4,784		151,021		2,203		356,225		13,301			146,423		3,202
Commercial non-real estate	97,672		1,531		22,556		312		79,418		4,401			22,731		678
Residential real estate	10,904		127		6,724		93		9,642		393			6,711		182
Consumer	139		3		237		6		162		4			212		11
Total	$	590,936	$	7,732	$	215,013	$	2,959	$	538,621	$	21,765		$	212,693	$	4,770

Valuation adjustment reductions made to repossessed properties totaled $4.8 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively. Valuation adjustment reductions made to repossessed properties totaled $4.8 million and $2.0 million for the six months ended March 31, 2020 and 2019, respectively. The adjustments are included in net loss on repossessed property and other related expenses in noninterest expense.

Included in certain loan categories in the impaired loans are TDRs that were classified as impaired. These TDRs do not include purchased credit impaired loans. When the Company grants concessions to borrowers such as reduced interest rates or extensions of loan periods that would not be considered other than because of borrowers’ financial difficulties, the modification is considered a TDR. Specific reserves included in the allowance for loan and lease losses for TDRs were $6.9 million and $10.3 million at March 31, 2020 and September 30, 2019, respectively. There were $0.1 million and $0.2 million of commitments to lend additional funds to borrowers whose loans were modified in a TDR as of March 31, 2020 and September 30, 2019, respectively.


	March 31, 2020						September 30, 2019
	Accruing		Nonaccrual		Accruing		Nonaccrual
	(dollars in thousands)
Commercial real estate	$	19,843	$	3,088	$	17,145	$	904
Agriculture	11,838		20,357		22,929		24,762
Commercial non-real estate	9,402		4,465		4,398		4,257
Residential real estate	294		92		263		102
Consumer	5		40		107		48
Total	$	41,382	$	28,042	$	44,842	$	30,073

TDRs are generally restructured through either a rate modification, term extension, payment modification or due to a bankruptcy. The following table presents a summary of all accruing loans restructured in TDRs for the three and six months ended March 31, 2020 and 2019.


	Three Months Ended March 31,																			Six Months Ended March 31,
	2020								2019								2020						2019
		Recorded Investment							Recorded Investment							Recorded Investment						Recorded Investment
	Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification			Number	Pre-Modification		Post-Modification
	(dollars in thousands)
Commercial real estate	1	$	2,879	$	2,879	—	$	—	$	—	1	$	2,879	$	2,879		—	$	—	$	—
Agriculture	2	993		993		—	—		—		2	993		993			—	—		—
Commercial non-real estate	2	3,952		3,952		—	—		—		4	5,096		5,096			—	—		—
Residential real estate	1	50		50		—	—		—		1	50		50			—	—		—
Consumer	—	—		—		—	—		—		—	—		—			1	89		89
Total accruing	6	$	7,874	$	7,874	—	$	—	$	—	8	$	9,018	$	9,018		1	$	89	$	89
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—		—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	—		—		—	—		—		—	—		—			—	—		—


	Three Months Ended March 31,																			Six Months Ended March 31,
	2020								2019								2020						2019
		Recorded Investment							Recorded Investment							Recorded Investment						Recorded Investment
	Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification			Number	Pre-Modification		Post-Modification
	(dollars in thousands)
Commercial real estate	—	$	—	$	—	—	$	—	$	—	1	$	2,216	$	2,216		—	$	—	$	—
Agriculture	—	—		—		—	—		—		10	1,455		1,455			—	—		—
Commercial non-real estate	—	—		—		—	—		—		2	830		830			—	—		—
Residential real estate	—	—		—		—	—		—		—	—		—			—	—		—
Consumer	—	—		—		—	—		—		—	—		—			—	—		—
Total nonaccruing	—	$	—	$	—	—	$	—	$	—	13	$	4,501	$	4,501		—	$	—	$	—
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—		—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	—		—		—	—		—		—	—		—			—	—		—


	Three Months Ended March 31,											Six Months Ended March 31,
	2020				2019					2020				2019
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment			Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial real estate	—	$	—	—	$	—	—	$	—		—	$	—
Agriculture	17	2,106		—	—		19	11,180			—	—
Commercial non-real estate	—	—		—	—		1	2,834			—	—
Residential real estate	—	—		—	—		—	—			—	—
Consumer	—	—		—	—		—	—			—	—
Total	17	$	2,106	—	$	—	20	$	14,014		—	$	—

For purposes of the table above, a loan is considered to be in payment default once it is 90 days or more contractually past due under the modified terms. The table includes loans that experienced a payment default during the period, but may be performing in accordance with the modified terms as of the balance sheet date. There were $0.3 million and $0.0 million for the three months ended March 31, 2020 and 2019, respectively, and $0.3 million and $0.0 million for the six months ended March 31, 2020 and 2019, respectively, of loans removed from TDR status as they were restructured at market terms and are performing.