
	September 30,
	2020		2019
	(dollars in thousands)
Commercial real estate	$	5,274,941	$	5,092,410
Agriculture	1,724,350		2,008,644
Commercial non-real estate	2,181,656		1,719,956
Residential real estate	830,102		812,208
Consumer	63,206		51,925
Other	37,347		47,541
Ending balance	10,111,602		9,732,684
Less: Unamortized discount on acquired loans	(8,215)		(13,655)
Unearned net deferred fees and costs and net loans in process	(27,245)		(12,266)
Total	$	10,076,142	$	9,706,763

The loan segments above include loans covered by a FDIC non-commercial loss sharing agreement, which ended June 4, 2020, totaling $0.0 million and $31.9 million as of September 30, 2020 and 2019, respectively, residential real estate loans held for sale totaling $12.4 million and $7.4 million at September 30, 2020 and 2019, respectively, and $655.2 million and $813.0 million of loans accounted for at fair value as of September 30, 2020 and 2019, respectively.

Unearned net deferred fees and costs totaled $29.0 million and $13.9 million as of September 30, 2020 and 2019, respectively. Net 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. Net loans in process totaled $(1.8) million and $(1.6) million as of September 30, 2020 and 2019, respectively.

The following table presents the Company’s nonaccrual loans at September 30, 2020 and 2019, excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of September 30, 2020 and 2019 were $0.0 million and $11.2 million, respectively.


	September 30,
	2020		2019
Nonaccrual loans	(dollars in thousands)
Commercial real estate	$	73,146	$	14,973
Agriculture	217,642		77,880
Commercial non-real estate	26,843		9,502
Residential real estate	4,441		2,661
Consumer	74		74
Total	$	322,146	$	105,090

The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2020 and 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 $655.2 million for September 30, 2020 and $813.0 million for September 30, 2019.


As of September 30, 2020	Commercial Real Estate		Agriculture		Commercial Non-Real Estate		Residential Real Estate ¹		Consumer ¹		Other		Total
Credit Risk Profile by Internally Assigned Grade	(dollars in thousands)
Grade:
Pass	$	4,062,814	$	968,875	$	1,851,323	$	806,436	$	62,285	$	37,347	$	7,789,080
Watchlist	577,399		265,714		94,401		6,972		709		—		945,195
Substandard	229,467		348,910		94,316		13,173		93		—		685,959
Doubtful	3,323		11,540		11,623		1,473		4		—		27,963
Loss	—		—		—		—		—		—		—
Ending balance	4,873,003		1,595,039		2,051,663		828,054		63,091		37,347		9,448,197
Loans covered by a FDIC loss sharing agreement	—		—		—		—		—		—		—
Total	$	4,873,003	$	1,595,039	$	2,051,663	$	828,054	$	63,091	$	37,347	$	9,448,197

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
Credit Risk Profile by Internally Assigned Grade	(dollars in thousands)
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 September 30, 2020 and 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 $655.2 million for September 30, 2020 and $813.0 million for 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
As of September 30, 2020	(dollars in thousands)
Commercial real estate	$	7,639	$	1,255	$	51,691	$	60,585	$	4,812,418	$	4,873,003
Agriculture	4,371		55,649		96,290		156,310		1,438,729		1,595,039
Commercial non-real estate	2,865		647		8,362		11,874		2,039,789		2,051,663
Residential real estate	1,358		1,101		3,073		5,532		822,522		828,054
Consumer	37		8		22		67		63,024		63,091
Other	—		—		—		—		37,347		37,347
Ending balance	16,270		58,660		159,438		234,368		9,213,829		9,448,197
Loans covered by a FDIC loss sharing agreement	—		—		—		—		—		—
Total	$	16,270	$	58,660	$	159,438	$	234,368	$	9,213,829	$	9,448,197


	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, 2019	(dollars in thousands)
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


	September 30, 2020						September 30, 2019
	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	$	111,121	$	114,034	$	25,087	$	26,003	$	26,297	$	4,159
Agriculture	53,052		55,145		8,151		98,392		104,350		8,234
Commercial non-real estate	39,821		47,571		7,822		21,331		21,777		6,062
Residential real estate	5,670		6,314		1,903		3,829		4,311		1,795
Consumer	98		109		30		207		214		97
Total impaired loans with an allowance recorded	209,762		223,173		42,993		149,762		156,949		20,347
With no allowance recorded:
Commercial real estate	121,380		161,211		—		28,272		66,631		—
Agriculture	308,734		332,272		—		231,087		255,308		—
Commercial non-real estate	66,542		75,365		—		21,579		31,414		—
Residential real estate	6,543		8,818		—		3,290		5,454		—
Consumer	—		108		—		1		108		—
Total impaired loans with no allowance recorded	503,199		577,774		—		284,229		358,915		—
Total impaired loans	$	712,961	$	800,947	$	42,993	$	433,991	$	515,864	$	20,347


	Fiscal Years Ended September 30,
	2020				2019				2018
	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	$	137,017	$	8,528	$	42,374	$	2,339	$	54,434	$	2,815
Agriculture	355,719		22,927		223,146		13,093		127,483		4,767
Commercial non-real estate	89,152		7,745		28,196		1,791		28,938		1,405
Residential real estate	10,408		691		6,889		410		7,156		452
Consumer	138		9		231		20		219		14
Total	$	592,434	$	39,900	$	300,836	$	17,653	$	218,230	$	9,453

Valuation adjustments made to repossessed properties for the fiscal years ended September 30, 2020 and 2019, totaled $10.8 million and $2.3 million, 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. In fiscal year 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. These modifications generally involve principal and/or interest payment deferrals for up to six months to borrowers who were current prior to any relief. These modifications generally meet the criteria of the CARES Act and the joint regulator interagency revised statement issued in April 2020, and therefore, the Company does not account for such loan modifications as TDRs.

Specific reserves included in the allowance for loan and lease losses for TDRs were $11.0 million and $10.3 million at September 30, 2020 and 2019, respectively. Commitments to lend additional funds to borrowers whose loans were modified in a TDR were $0.0 million as of September 30, 2020 and $0.2 million as of September 30, 2019.


	September 30, 2020				September 30, 2019
	Accruing		Nonaccrual		Accruing		Nonaccrual
	(dollars in thousands)
Commercial real estate	$	23,215	$	11,913	$	17,145	$	904
Agriculture	2,976		45,971		22,929		24,762
Commercial non-real estate	8,734		4,803		4,398		4,257
Residential real estate	277		74		263		102
Consumer	3		31		107		48
Total	$	35,205	$	62,792	$	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 during the fiscal years ended September 30, 2020, 2019 and 2018.


	September 30, 2020					September 30, 2019					September 30, 2018
		Recorded Investment					Recorded Investment					Recorded Investment
	Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification		Number	Pre-Modification		Post-Modification
	(dollars in thousands)
Commercial real estate	4	$	17,586	$	17,586	2	$	15,466	$	15,466	1	$	2,041	$	2,041
Agriculture	2	993		993		16	11,537		11,537		5	10,753		10,753
Commercial non-real estate	5	6,353		6,353		2	1,445		1,445		—	—		—
Residential real estate	1	50		50		—	—		—		—	—		—
Consumer	—	—		—		2	188		188		1	73		73
Total accruing	12	$	24,982	$	24,982	22	$	28,636	$	28,636	7	$	12,867	$	12,867
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	—		—		—	—		—		—	—		—


	September 30, 2020					September 30, 2019					September 30, 2018
		Recorded Investment					Recorded Investment					Recorded Investment
	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	1	$	882	$	882	—	$	—	$	—
Agriculture	12	27,807		27,807		9	5,802		5,802		9	9,990		9,990
Commercial non-real estate	5	1,752		1,752		2	3,699		3,699		—	—		—
Residential real estate	—	—		—		—	—		—		—	—		—
Consumer	—	—		—		—	—		—		—	—		—
Total nonaccruing	18	$	31,775	$	31,775	12	$	10,383	$	10,383	9	$	9,990	$	9,990
Change in recorded investment due to principal paydown at time of modification	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Change in recorded investment due to chargeoffs at time of modification	—	—		—		—	—		—		—	—		—


	Fiscal Years Ended September 30,
	2020			2019			2018
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial real estate	1	$	—	—	$	—	—	$	—
Agriculture	10	1,144		—	—		1	366
Commercial non-real estate	4	921		—	—		—	—
Residential real estate	—	—		—	—		—	—
Consumer	—	—		1	—		—	—
Total	15	$	2,065	1	$	—	1	$	366

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, $0.0 million and $0.8 million as of September 30, 2020, 2019 and 2018, respectively, of loans removed from TDR status as they were restructured at market terms and are performing.