Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Entity Address, City or Town | Sioux Falls, | |
Entity Address, Address Line One | 225 South Main Avenue | |
Entity Tax Identification Number | 47-1308512 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Registrant Name | Great Western Bancorp, Inc. | |
Entity Central Index Key | 0001613665 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Entity File Number | 001-36688 | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (shares) | 56,939,262 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Transition Report | false | |
Entity Address, Postal Zip Code | 57104 | |
City Area Code | 605 | |
Local Phone Number | 334-2548 | |
Entity Address, State or Province | SD | |
Trading Symbol | GWB | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Assets | ||
Cash and due from banks | $ 170,241 | $ 168,119 |
Interest-bearing bank deposits | 55,115 | 130,577 |
Cash and cash equivalents | 225,356 | 298,696 |
Securities available for sale | 1,799,430 | 1,385,650 |
Loans, net of unearned discounts and deferred fees, including $34,102 and $42,627 of loans covered by a FDIC loss share agreement at June 30, 2019 and September 30, 2018, respectively, and $816,851 and $865,386 of loans at fair value under the fair value option at June 30, 2019 and September 30, 2018, respectively, and $6,241 and $5,456 of loans held for sale at June 30, 2019 and September 30, 2018, respectively | 9,886,971 | 9,415,924 |
Allowance for loan and lease losses | (76,546) | (64,540) |
Net loans | 9,810,425 | 9,351,384 |
Premises and equipment, including $3,208 and $1,104 of property held for sale at June 30, 2019 and September 30, 2018, respectively | 118,856 | 113,839 |
Accrued interest receivable | 57,350 | 58,948 |
Other repossessed property, including $0 and $131 of property covered by a FDIC loss share agreement at June 30, 2019 and September 30, 2018, respectively | 36,393 | 23,074 |
Goodwill | 739,023 | 739,023 |
Cash surrender value of life insurance policies | 30,579 | 30,461 |
Net deferred tax assets | 16,782 | 30,132 |
Other assets | 120,702 | 85,601 |
Total assets | 12,954,896 | 12,116,808 |
Deposits | ||
Noninterest-bearing | 1,936,986 | 1,842,704 |
Interest-bearing | 8,298,958 | 7,890,795 |
Total deposits | 10,235,944 | 9,733,499 |
Securities sold under agreements to repurchase | 56,925 | 90,907 |
FHLB advances and other borrowings | 605,000 | 275,000 |
Subordinated debentures and subordinated notes payable | 108,594 | 108,468 |
Accrued expenses and other liabilities | 67,305 | 68,383 |
Total liabilities | 11,073,768 | 10,276,257 |
Stockholders’ equity | ||
Common stock, $0.01 par value, authorized 500,000,000 shares; 56,939,032 shares issued and outstanding at June 30, 2019 and 58,917,147 shares issued and outstanding at September 30, 2018 | 569 | 589 |
Additional paid-in capital | 1,247,082 | 1,318,457 |
Retained earnings | 624,242 | 553,014 |
Accumulated other comprehensive income (loss) | 9,235 | (31,509) |
Total stockholders' equity | 1,881,128 | 1,840,551 |
Total liabilities and stockholders' equity | $ 12,954,896 | $ 12,116,808 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Assets | ||
Loans covered by a FDIC loss share agreement | $ 34,102 | $ 42,627 |
Loans and written loan commitments at fair value under the fair value option | 816,851 | 865,386 |
Loan held for sale | 6,241 | 5,456 |
Property held for sale | 3,208 | 1,104 |
Property covered under a FDIC loss share agreement | $ 0 | $ 131 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 56,939,032 | 58,917,147 |
Common stock, shares outstanding (in shares) | 56,939,032 | 58,917,147 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income | ||||
Loans | $ 126,392 | $ 116,522 | $ 372,156 | $ 334,196 |
Investment securities | 11,430 | 7,471 | 30,575 | 21,526 |
Federal funds sold and other | 377 | 424 | 1,416 | 882 |
Total interest income | 138,199 | 124,417 | 404,147 | 356,604 |
Interest expense | ||||
Deposits | 28,615 | 16,460 | 79,507 | 40,116 |
FHLB advances and other borrowings | 2,538 | 1,963 | 6,464 | 6,941 |
Subordinated debentures and subordinated notes payable | 1,417 | 1,322 | 4,177 | 3,699 |
Total interest expense | 32,570 | 19,745 | 90,148 | 50,756 |
Net interest income | 105,629 | 104,672 | 313,999 | 305,848 |
Provision for loan and lease losses | 26,077 | 3,515 | 38,965 | 12,972 |
Net interest income after provision for loan and lease losses | 79,552 | 101,157 | 275,034 | 292,876 |
Noninterest income | ||||
Service charges and other fees | 10,321 | 12,655 | 32,219 | 37,879 |
Wealth management fees | 2,234 | 2,242 | 6,592 | 6,761 |
Mortgage banking income, net | 1,055 | 1,352 | 3,366 | 4,178 |
Net gain (loss) on sale of securities | 322 | 15 | (191) | 6 |
Net increase (decrease) in fair value of loans at fair value | 16,429 | (7,370) | 49,662 | (30,872) |
Net realized and unrealized (loss) gain on derivatives | (20,904) | 8,093 | (50,252) | 29,602 |
Other | 1,309 | 1,952 | 4,313 | 6,801 |
Total noninterest income | 10,766 | 18,939 | 45,709 | 54,355 |
Noninterest expense | ||||
Salaries and employee benefits | 33,899 | 35,122 | 103,206 | 101,661 |
Data processing and communication | 6,234 | 7,177 | 17,475 | 23,251 |
Occupancy and equipment | 4,934 | 4,974 | 15,599 | 15,112 |
Professional fees | 3,923 | 4,297 | 11,181 | 12,564 |
Advertising | 1,145 | 1,260 | 3,299 | 3,441 |
Net loss on repossessed property and other related expenses | 595 | 305 | 4,062 | 1,519 |
Other | 5,270 | 4,728 | 14,864 | 14,327 |
Total noninterest expense | 56,000 | 57,863 | 169,686 | 171,875 |
Income before income taxes | 34,318 | 62,233 | 151,057 | 175,356 |
Provision for income taxes | 7,535 | 16,359 | 33,977 | 59,720 |
Net income | $ 26,783 | $ 45,874 | $ 117,080 | $ 115,636 |
Basic earnings per common share | ||||
Weighted average shares outstanding (in shares) | 56,995,007 | 58,948,944 | 57,321,561 | 58,930,963 |
Earnings per share (in dollars per share) | $ 0.47 | $ 0.78 | $ 2.04 | $ 1.96 |
Diluted earnings per common share | ||||
Weighted average shares outstanding (in shares) | 57,110,103 | 59,170,058 | 57,408,023 | 59,134,635 |
Diluted earnings per share (in dollars per share) | $ 0.47 | $ 0.78 | $ 2.04 | $ 1.96 |
Dividends per share | ||||
Dividends paid | $ 17,081 | $ 14,724 | $ 45,852 | $ 38,274 |
Dividends per share (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.80 | $ 0.65 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 26,783 | $ 45,874 | $ 117,080 | $ 115,636 | |
Securities available for sale: | |||||
Net unrealized holding gain (loss) arising during the period | 23,690 | (5,671) | 53,882 | (26,741) | |
Reclassification adjustment for net (gain) loss realized in net income | (322) | (15) | 191 | (6) | |
Income tax (expense) benefit | (5,761) | 1,402 | (13,329) | 7,747 | |
Net change in unrealized gain (loss) on securities available for sale | 17,607 | (4,284) | 40,744 | (19,000) | |
Defined Benefit Pension Plan Obligation | |||||
Net unrealized holding gain arising during the period | [1] | 0 | 0 | 0 | 145 |
Income tax expense | [1] | 0 | 0 | 0 | (55) |
Net change in defined benefit pension plan obligation | [1] | 0 | 0 | 0 | 90 |
Other comprehensive income (loss), net of tax | 17,607 | (4,284) | 40,744 | (18,910) | |
Comprehensive income | $ 44,390 | $ 41,590 | $ 157,824 | $ 96,726 | |
[1] | The Company's Board of Directors voted to terminate the defined benefit pension plan ("Pension Plan") effective February 1, 2018. Transfer of all Pension Plan assets, liabilities and administrative responsibilities were completed as of September 30, 2018. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | |
Beginning balance at Sep. 30, 2017 | $ 1,755,000 | $ 588 | $ 1,314,039 | $ 445,747 | $ (5,374) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 115,636 | 115,636 | ||||
Other comprehensive income (loss), net of tax | (18,910) | (18,910) | ||||
Comprehensive income | 96,726 | |||||
Stock-based compensation, net of tax | 3,289 | 1 | 3,288 | |||
Common stock cash dividends | (38,274) | (38,274) | ||||
Reclassification due to adoption of ASU 2018-02 | [1] | 2,353 | (2,353) | |||
Ending balance at Jun. 30, 2018 | 1,816,741 | 589 | 1,317,327 | 525,462 | (26,637) | |
Beginning balance at Mar. 31, 2018 | 1,788,698 | 589 | 1,316,150 | 494,312 | (22,353) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 45,874 | 45,874 | ||||
Other comprehensive income (loss), net of tax | (4,284) | (4,284) | ||||
Comprehensive income | 41,590 | |||||
Stock-based compensation, net of tax | 1,177 | 0 | 1,177 | |||
Common stock cash dividends | (14,724) | (14,724) | ||||
Ending balance at Jun. 30, 2018 | 1,816,741 | 589 | 1,317,327 | 525,462 | (26,637) | |
Beginning balance at Sep. 30, 2018 | 1,840,551 | 589 | 1,318,457 | 553,014 | (31,509) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 117,080 | 117,080 | ||||
Other comprehensive income (loss), net of tax | 40,744 | 40,744 | ||||
Comprehensive income | 157,824 | |||||
Stock-based compensation, net of tax | 3,264 | 1 | 3,263 | |||
Common stock cash dividends | (45,852) | (45,852) | ||||
Repurchase of common stock | (74,659) | (21) | (74,638) | |||
Ending balance at Jun. 30, 2019 | 1,881,128 | 569 | 1,247,082 | 624,242 | 9,235 | |
Beginning balance at Mar. 31, 2019 | 1,852,394 | 569 | 1,245,657 | 614,540 | (8,372) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 26,783 | 26,783 | ||||
Other comprehensive income (loss), net of tax | 17,607 | 17,607 | ||||
Comprehensive income | 44,390 | |||||
Stock-based compensation, net of tax | 1,425 | 0 | 1,425 | |||
Common stock cash dividends | (17,081) | (17,081) | ||||
Ending balance at Jun. 30, 2019 | $ 1,881,128 | $ 569 | $ 1,247,082 | $ 624,242 | $ 9,235 | |
[1] | Cumulative effect adjustment relates to the adoption of ASU 2016-09, Compensation - Stock Based Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid on common stock (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.80 | $ 0.65 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net income | $ 117,080 | $ 115,636 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,415 | 9,496 |
Amortization of FDIC indemnification asset | 1,154 | 2,244 |
Net loss on sale of securities and other assets | 2,727 | 2,711 |
Net gain on sale of loans | (3,971) | (4,924) |
Provision for loan and lease losses | 38,965 | 12,972 |
Reversal of loan servicing rights loss | (1) | (72) |
Stock-based compensation | 3,264 | 3,289 |
Originations of residential real estate loans held for sale | (171,233) | (189,827) |
Proceeds from sales of residential real estate loans held for sale | 174,420 | 195,402 |
Net deferred income taxes | 21 | 18,743 |
Changes in: | ||
Accrued interest receivable | 1,598 | 1,197 |
Other assets | (24,363) | 669 |
Accrued interest payable and other liabilities | 158 | (14,850) |
Net cash provided by operating activities | 148,234 | 152,686 |
Investing activities | ||
Purchase of securities available for sale | (666,901) | (224,159) |
Proceeds from sales of securities available for sale | 145,627 | 25,906 |
Proceeds from maturities of securities available for sale | 158,464 | 163,393 |
Net increase in loans | (519,597) | (433,428) |
Recovery (payment) of covered losses from FDIC indemnification claims | 26 | (588) |
Purchase of premises and equipment | (11,980) | (5,492) |
Proceeds from sale of premises and equipment | 605 | 4,600 |
Proceeds from sale of repossessed property | 8,422 | 8,433 |
Purchase of FHLB stock | (72,948) | (47,372) |
Proceeds from redemption of FHLB stock | 59,869 | 59,914 |
Net cash used in investing activities | (898,413) | (448,793) |
Financing activities | ||
Net increase in deposits | 502,568 | 607,914 |
Net decrease in securities sold under agreements to repurchase and other short-term borrowings | (33,982) | (27,158) |
Proceeds from FHLB advances and other long-term borrowings | 795,000 | 150,000 |
Repayments on FHLB advances and other long-term borrowings | (465,000) | (458,200) |
Common stock repurchased | (74,659) | 0 |
Taxes paid related to net share settlement of equity awards | (1,236) | (3,957) |
Dividends paid | (45,852) | (38,274) |
Net cash provided by financing activities | 676,839 | 230,325 |
Net decrease in cash and cash equivalents | (73,340) | (65,782) |
Cash and cash equivalents, beginning of period | 298,696 | 360,396 |
Cash and cash equivalents, end of period | 225,356 | 294,614 |
Supplemental disclosure of cash flow information | ||
Cash payments for interest | 81,585 | 47,237 |
Cash payments for income taxes | 37,708 | 39,404 |
Supplemental disclosure of noncash investing and financing activities | ||
Loans transferred to repossessed properties | $ (23,625) | $ (11,188) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Policies | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Policies | 1. Nature of Operations and Summary of Significant Policies Nature of Operations The Company is a bank holding company organized under the laws of Delaware and is listed on the NYSE under the symbol "GWB". The primary business of the Company is ownership of its wholly-owned subsidiary, Great Western Bank. The Bank is a full-service regional bank focused on relationship-based business and agri-business banking in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota . The Company and the Bank are subject to the regulation of certain federal and/or state agencies and undergo periodic examinations by those regulatory authorities. Substantially all of the Company’s income is generated from banking operations. Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP and reflect all adjustments that are, in the opinion of management, necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. Certain previously reported amounts have been reclassified to conform to the current presentation. The unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended September 30, 2018 , which includes a description of significant accounting policies. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year or any other period. The accompanying unaudited consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Changes in Significant Accounting Policies Pursuant to the Company's adoption of certain ASUs as of October 1, 2018, the following significant accounting policies have been updated from those disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . Revenue Recognition We adopted ASU 2014-09, " Revenue from Contracts with Customers (Topic 606) " and subsequent related ASUs effective October 1, 2018 using the modified retrospective approach, which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures and in "Note 1. Nature of Operations and Summary of Significant Policies ," in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our consolidated income statements as components of noninterest income, are as follows: Service charges and fees on deposit accounts. Service charges on deposit accounts are earned for account maintenance and overdraft, wire and treasury management services. Revenue is recognized at the time the services are performed and is included in service charges and other fees within noninterest income on the consolidated statements of income. Interchange and merchant services income. Interchange and merchant services income are earned from credit and debit card payment processing through card association networks, merchant services and other card related services. Fees for these services are primarily based on interchange rates set by the networks and transaction volumes and are recognized as transactions are processed and settled with networks on behalf of card holders. These fees are presented net of direct expenses, including reward costs, associated with credit and debit card interchange income in service charges and other fees which are included in noninterest income on the consolidated statements of income. Wealth management and trust fee income. Wealth management and trust fees are earned for asset management, custody and recordkeeping, investment advisory and administrative services. Revenue is recognized as the services are performed. Brokerage charges are recorded as a net reduction in wealth management fees which are included in noninterest income on the consolidated statements of income. Other noninterest income. Other noninterest income primarily includes such items as letter of credit fees, gains on sale of loans held for sale and servicing fees, none of which are subject to the requirements of ASC Topic 606. The following table presents total noninterest income segregated between contracts with customers within the scope of ASC Topic 606 and those within the scope of other GAAP Topics. The following additionally presents revenues from customers that are included within noninterest income. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Noninterest income Service charges and other fees $ 10,321 $ 12,655 $ 32,219 $ 37,879 Wealth management fees 2,234 2,242 6,592 6,761 Other 617 1,522 2,317 5,523 Noninterest income from contracts with customers within the scope of ASC Topic 606 ¹ 13,172 16,419 41,128 50,163 Noninterest income within the scope of other GAAP Topics ² (2,406 ) 2,520 4,581 4,192 Total noninterest income $ 10,766 $ 18,939 $ 45,709 $ 54,355 1 Amounts for periods after October 1, 2018 are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers , except for out of scope amounts. Amounts for periods prior to October 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition , and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers . 2 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's consolidated statements of income. At June 30, 2019 , the Company does not have any material contract assets, liabilities, or other receivables recorded on its consolidated balance sheets relating to its revenue streams within the scope of ASC Topic 606. Additionally, the Company's contracts generally do not contain terms that require significant judgment to determine the amount of revenue to recognize. Practical expedients The Company has elected the practical expedient to exclude the disclosure of unsatisfied performance obligations for contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The Company recognizes incremental costs of obtaining those contracts as an expense when incurred. Subsequent Events The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. Other than those described below, there were no other material events or transactions that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements. On July 25, 2019 , the Board of Directors of the Company declared a dividend of $0.30 per common share payable on August 23, 2019 to stockholders of record as of close of business on August 9, 2019 . |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Standards Accounting Standards Adopted in Fiscal Year 2019 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which implements a more robust framework that clarifies the principles for recognizing revenue and gives greater consistency and comparability in revenue recognition practices. In the new framework, an entity recognizes revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. The new model requires the identification of performance obligations included in the contract with customers, a determination of the transaction price and an allocation of the price to those performance obligations. The entity recognizes revenue when performance obligations are satisfied. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance pertaining to the identification of performance obligations and the licensing implementation. In May 2016, the FASB issued ASU 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related to the adoption of ASU 2014-09. In December 2016, the FASB issued ASU 2016-20, which made technical corrections and improvements to the previous ASUs issued. The standard permits the use of either the retrospective or cumulative effect transition method. The standard, along with subsequent guidance from FASB, lists several items that are specifically out of scope for ASU 2014-09, including but not limited to core interest income, derivative instruments, investments, and loan origination fees. The Company adopted this standard and subsequent related ASUs October 1, 2018 using the modified retrospective method. Furthermore, the Company prospectively changed the presentation of direct expenses, including reward costs, associated with credit and debit card interchange income previously included in data processing and communication expense which are now netted against interchange income in service charges and other fees, which is included in noninterest income on the consolidated statements of income. Brokerage charges previously included in professional fees are now netted against wealth management fees, which is included in noninterest income on the consolidated statements of income. The net quantitative impact of these presentation changes decreased both revenue and expenses by $1.5 million and $5.2 million for the three and nine months ended June 30, 2019 ; however, these presentation changes did not have an impact on net income. Prior period balances have not been restated to reflect these presentation changes. There were no significant cumulative effect adjustments as a result of implementation as our current revenue recognition policies generally conform with the principals in ASC Topic 606. For additional information, see "Note 1. Nature of Operations and Summary of Significant Policies ." Accounting Standards Not Yet Adopted in Fiscal Year 2019 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes in the Disclosure Requirements for Fair Value Measurement , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Entities are also allowed to elect to early adopt the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until after their effective date. As ASU 2018-13 only revises disclosure requirements, the Company does not believe this ASU will have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 is to be applied to all existing hedging relationships on the date of adoption and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period, with the effect of adoption reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of ASU 2017-12 on our consolidated financial statements and does not expect to early adopt this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which addresses timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires institutions to measure all expected credit losses related to financial assets measured at amortized costs with an expected loss model based on historical experience, current conditions and reasonable and supportable forecasts relevant to affect the collectability of the financial assets, which is referred to as the current expected credit loss (CECL) model. ASU 2016-13 requires enhanced disclosures, including qualitative and quantitative requirements, to help understand significant estimates and judgments used in estimating credit losses, as well as provide additional information about the amounts recorded in the financial statements. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments, Credit Losses , which made technical corrections and improvements to the previous ASU issued. These ASUs will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The amendment requires the use of the modified retrospective approach for adoption. The Company continues to make progress on the implementation plan and has recently started the User Acceptance Testing phase with the third party vendor software. The Company does not expect to early adopt this standard and is currently evaluating the potential impact on our consolidated financial statements; however, since the magnitude of the anticipated change in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which requires that lessees recognize the assets and liabilities arising from leases on the balance sheet and disclosing key information about leasing arrangements. Lessees will be required to recognize an obligation for future lease payments measured on a discounted basis and a related right-of-use asset. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , and ASU 2018-11, Leases (Topic 842), Targeted Improvements , which made technical corrections and improvements to the previous ASU issued. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors , which allows lessors to exclude sales tax from consideration of the contract through a policy election and clarifies treatment of certain lessor costs and variable payments for contracts with lease and nonlease components. These ASUs will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance will be effective with respect to the Company beginning fiscal year 2020. The Company is in the final stages of reviewing existing lease agreements for which the amended guidance is to be applied and is in the process of determining which practical expedients will be elected for transition and is currently evaluating the potential impact on our consolidated financial statements. |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The amortized cost and approximate fair value of investments in securities, all of which are classified as available for sale according to management’s intent, are summarized as follows. Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ 93,936 $ 690 $ (92 ) $ 94,534 Mortgage-backed securities: Government National Mortgage Association 485,426 2,902 (4,999 ) 483,329 Federal Home Loan Mortgage Corporation 466,761 7,426 (934 ) 473,253 Federal National Mortgage Association 340,047 3,868 (812 ) 343,103 Small Business Assistance Program 331,695 4,101 (57 ) 335,739 States and political subdivision securities 68,290 393 (232 ) 68,451 Other 1,006 15 — 1,021 Total $ 1,787,161 $ 19,395 $ (7,126 ) $ 1,799,430 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 168,394 $ — $ (1,222 ) $ 167,172 Mortgage-backed securities: Government National Mortgage Association 442,458 35 (16,335 ) 426,158 Federal Home Loan Mortgage Corporation 297,380 — (7,055 ) 290,325 Federal National Mortgage Association 188,192 — (6,081 ) 182,111 Small Business Assistance Program 260,458 — (9,345 ) 251,113 States and political subdivision securities 69,566 4 (1,795 ) 67,775 Other 1,006 — (10 ) 996 Total $ 1,427,454 $ 39 $ (41,843 ) $ 1,385,650 The amortized cost and approximate fair value of debt securities available for sale as of June 30, 2019 and September 30, 2018 , by contractual maturity, are shown below. Maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without penalty. June 30, 2019 September 30, 2018 Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ 56,440 $ 56,341 $ 111,842 $ 111,221 Due after one year through five years 92,477 93,181 114,920 113,069 Due after five years through ten years 13,309 13,463 11,076 10,535 Due after ten years — — 122 122 162,226 162,985 237,960 234,947 Mortgage-backed securities 1,623,929 1,635,424 1,188,488 1,149,707 Securities without contractual maturities 1,006 1,021 1,006 996 Total $ 1,787,161 $ 1,799,430 $ 1,427,454 $ 1,385,650 Proceeds from sales of securities available for sale were $48.4 million and $145.6 million for the three and nine months ended June 30, 2019 and $0.7 million and $25.9 million for the three and nine months ended June 30, 2018 , respectively. Gross gains (pre-tax) of $0.3 million were realized on the sales for the three and nine months ended June 30, 2019 and negligible gross gains (pre-tax) were realized on the sales for the three and nine months ended June 30, 2018 using the specific identification method. Negligible gross losses (pre-tax) were realized on the sales for the three months ended June 30, 2019 and $0.5 million of gross losses (pre-tax) were realized on the sales for the nine months ended June 30, 2019 . Negligible gross losses (pre-tax) were realized on the sales for the three and nine months ended June 30, 2019 and 2018 , respectively, using the specific identification method. The Company recognized no other-than-temporary impairment for the three and nine months ended June 30, 2019 and 2018 . Securities with an estimated fair value of approximately $950.3 million and $787.4 million at June 30, 2019 and September 30, 2018 , respectively, were pledged as collateral on public deposits, securities sold under agreements to repurchase, and for other purposes as required by contractual obligation or law. The counterparties do not have the right to sell or pledge the securities the Company has pledged as collateral. As detailed in the following tables, certain investments in debt securities, which are approximately 34% and 98% of the Company’s investment portfolio at estimated fair value at June 30, 2019 and September 30, 2018 , respectively, are reported in the consolidated financial statements at an amount less than their amortized cost. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, implicit or explicit government guarantees, and information obtained from regulatory filings, management believes the declines in fair value of these securities are temporary. As the Company does not intend to sell the securities and it is not more-likely-than-not the Company will be required to sell the securities before the recovery of their amortized cost basis, which may be maturity, the Company does not consider the securities to be other-than-temporarily impaired at June 30, 2019 or September 30, 2018 . The following table presents the Company’s gross unrealized losses and approximate fair value in investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ — $ — $ 44,552 $ (92 ) $ 44,552 $ (92 ) Mortgage-backed securities 8,186 (35 ) 514,300 (6,767 ) 522,486 (6,802 ) States and political subdivision securities — — 35,803 (232 ) 35,803 (232 ) Other — — — — — — Total $ 8,186 $ (35 ) $ 594,655 $ (7,091 ) $ 602,841 $ (7,126 ) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ (1,222 ) $ — $ — $ 167,172 $ (1,222 ) Mortgage-backed securities 416,677 (8,427 ) 709,387 (30,389 ) 1,126,064 (38,816 ) States and political subdivision securities 23,534 (250 ) 42,282 (1,545 ) 65,816 (1,795 ) Other 996 (10 ) — — 996 (10 ) Total $ 608,379 $ (9,909 ) $ 751,669 $ (31,934 ) $ 1,360,048 $ (41,843 ) As of June 30, 2019 and September 30, 2018 , the Company had 292 and 390 securities, respectively, in an unrealized loss position. |
Loans
Loans | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans | Loans The following table presents the composition of loans as of June 30, 2019 and September 30, 2018 . June 30, September 30, 2019 2018 (dollars in thousands) Commercial real estate $ 5,199,742 $ 4,629,330 Agriculture 2,049,395 2,182,688 Commercial non-real estate 1,747,501 1,699,987 Residential real estate 816,751 837,569 Consumer 53,277 49,689 Other 48,406 46,487 Ending balance 9,915,072 9,445,750 Less: Unamortized discount on acquired loans (15,549 ) (18,283 ) Unearned net deferred fees and costs and loans in process (12,552 ) (11,543 ) Total $ 9,886,971 $ 9,415,924 The loan segments above include loans covered by a FDIC loss sharing agreement totaling $34.1 million and $42.6 million as of June 30, 2019 and September 30, 2018 , respectively, residential real estate loans held for sale totaling $6.2 million and $5.5 million at June 30, 2019 and September 30, 2018 , respectively, and $816.9 million and $865.4 million of loans accounted for at fair value at June 30, 2019 and September 30, 2018 , respectively. Unearned net deferred fees and costs totaled $14.3 million and $13.0 million as of June 30, 2019 and September 30, 2018 , 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 $(1.7) million and $(1.5) million at June 30, 2019 and September 30, 2018 , respectively. Loans guaranteed by agencies of the U.S. government totaled $161.1 million and $168.6 million at June 30, 2019 and September 30, 2018 , respectively. Principal balances of residential real estate loans sold totaled $69.8 million and $72.7 million for the three months June 30, 2019 and 2018 , respectively, and $170.4 million and $190.5 million for the nine months ended June 30, 2019 and 2018 , respectively. Nonaccrual Interest income on loans is accrued daily on the outstanding balances. A loan is placed on nonaccrual status and accrual of interest is discontinued when principal or interest becomes 90 days past due unless it is well secured and is in the process of collection, or earlier when concern exists as to the ultimate collectibility of principal or interest. When loans are placed on nonaccrual status, 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 June 30, 2019 and September 30, 2018 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of June 30, 2019 and September 30, 2018 , were $0.0 million and $0.2 million , respectively. June 30, September 30, 2019 2018 (dollars in thousands) Nonaccrual loans Commercial real estate $ 18,401 $ 22,871 Agriculture 84,943 107,198 Commercial non-real estate 10,044 6,887 Residential real estate 2,393 3,549 Consumer 85 61 Total $ 115,866 $ 140,566 Credit Quality Information 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 loan risk ratings are updated and monitored 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 consumer loans. The following table presents the composition of the loan portfolio by internally assigned grade as of June 30, 2019 and September 30, 2018 . 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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . As of June 30, 2019 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,581,421 $ 1,448,932 $ 1,508,930 $ 768,313 $ 52,030 $ 48,406 $ 8,408,032 Watchlist 49,758 98,142 57,867 3,846 756 — 210,369 Substandard 47,931 342,651 28,760 6,895 312 — 426,549 Doubtful 59 3,013 512 38 — — 3,622 Loss — — — — — — — Ending balance 4,679,169 1,892,738 1,596,069 779,092 53,098 48,406 9,048,572 Loans covered by a FDIC loss sharing agreement — — — 34,102 — — 34,102 Total $ 4,679,169 $ 1,892,738 $ 1,596,069 $ 813,194 $ 53,098 $ 48,406 $ 9,082,674 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, 2018 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,108,314 $ 1,610,291 $ 1,401,418 $ 779,610 $ 48,979 $ 46,487 $ 7,995,099 Watchlist 53,150 239,392 19,503 4,548 322 — 316,915 Substandard 41,184 137,205 20,117 6,366 159 — 205,031 Doubtful 93 2 2,277 37 — — 2,409 Loss — — — — — — — Ending balance 4,202,741 1,986,890 1,443,315 790,561 49,460 46,487 8,519,454 Loans covered by a FDIC loss sharing agreement — — — 42,627 — — 42,627 Total $ 4,202,741 $ 1,986,890 $ 1,443,315 $ 833,188 $ 49,460 $ 46,487 $ 8,562,081 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. Past Due Loans The following table presents the Company’s past due loans at June 30, 2019 and September 30, 2018 . 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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables (dollars in thousands) As of June 30, 2019 Commercial real estate $ 1,977 $ 1,782 $ 4,246 $ 8,005 $ 4,671,164 $ 4,679,169 Agriculture 1,827 3,574 27,122 32,523 1,860,215 1,892,738 Commercial non-real estate 1,179 1,533 2,732 5,444 1,590,625 1,596,069 Residential real estate 826 245 780 1,851 777,241 779,092 Consumer 147 81 19 247 52,851 53,098 Other — — — — 48,406 48,406 Ending balance 5,956 7,215 34,899 48,070 9,000,502 9,048,572 Loans covered by a FDIC loss sharing agreement 1,559 537 470 2,566 31,536 34,102 Total $ 7,515 $ 7,752 $ 35,369 $ 50,636 $ 9,032,038 $ 9,082,674 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables (dollars in thousands) As of September 30, 2018 Commercial real estate $ 920 $ 551 $ 9,135 $ 10,606 $ 4,192,135 $ 4,202,741 Agriculture 1,243 2,042 51,579 54,864 1,932,026 1,986,890 Commercial non-real estate 551 16 4,068 4,635 1,438,680 1,443,315 Residential real estate 913 200 1,747 2,860 787,701 790,561 Consumer 83 47 1 131 49,329 49,460 Other — — — — 46,487 46,487 Ending balance 3,710 2,856 66,530 73,096 8,446,358 8,519,454 Loans covered by a FDIC loss sharing agreement 30 233 471 734 41,893 42,627 Total $ 3,740 $ 3,089 $ 67,001 $ 73,830 $ 8,488,251 $ 8,562,081 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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . June 30, 2019 September 30, 2018 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 $ 24,856 $ 25,699 $ 4,058 $ 25,136 $ 25,223 $ 3,668 Agriculture 109,245 125,164 14,126 60,053 76,874 9,590 Commercial non-real estate 19,933 21,375 5,731 14,177 17,241 4,508 Residential real estate 3,807 4,373 1,846 4,509 5,153 2,210 Consumer 313 318 224 160 165 61 Total impaired loans with an allowance recorded 158,154 176,929 25,985 104,035 124,656 20,037 With no allowance recorded: Commercial real estate 22,890 60,927 — 15,764 58,141 — Agriculture 237,737 257,431 — 77,172 80,355 — Commercial non-real estate 9,946 18,004 — 8,905 18,047 — Residential real estate 3,383 5,437 — 2,177 4,574 — Consumer — 108 — 1 118 — Total impaired loans with no allowance recorded 273,956 341,907 — 104,019 161,235 — Total impaired loans $ 432,110 $ 518,836 $ 25,985 $ 208,054 $ 285,891 $ 20,037 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended Nine Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 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 Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 40,199 $ 718 $ 61,257 $ 402 $ 39,399 $ 1,415 $ 57,818 $ 2,456 Agriculture 253,240 7,147 126,262 1,592 196,563 10,349 125,047 3,763 Commercial non-real estate 26,381 468 28,915 354 24,518 1,146 30,402 1,130 Residential real estate 6,911 123 6,780 54 6,831 305 7,273 335 Consumer 261 8 199 3 237 19 234 10 Total $ 326,992 $ 8,464 $ 223,413 $ 2,405 $ 267,548 $ 13,234 $ 220,774 $ 7,694 Valuation adjustments made to repossessed properties totaled $0.1 million and $0.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $2.0 million and $1.2 million for the nine months ended June 30, 2019 and 2018 , respectively. The adjustments are included in net loss on repossessed property and other related expenses in noninterest expense. Troubled Debt Restructurings 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 $9.9 million and $9.2 million at June 30, 2019 and September 30, 2018 , respectively. There were $0.9 million of commitments to lend additional funds to borrowers whose loans were modified in a TDR as of June 30, 2019 and $0.3 million commitments to lend additional funds to borrowers whose loans were modified in a TDR as of September 30, 2018 . The following table presents the recorded value of the Company’s TDR balances as of June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 17,205 $ 933 $ 2,649 $ 2,616 Agriculture 23,853 27,551 13,248 73,741 Commercial non-real estate 2,504 4,379 3,420 656 Residential real estate 337 109 389 143 Consumer 89 57 77 — Total $ 43,988 $ 33,029 $ 19,783 $ 77,156 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 nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 2 $ 15,466 $ 15,466 — $ — $ — 2 $ 15,466 $ 15,466 — $ — $ — Agriculture 16 11,537 11,537 3 4,680 4,680 16 11,537 11,537 5 10,753 10,753 Commercial non-real estate — — — — — — — — — — — — Residential real estate — — — — — — — — — — — — Consumer — — — — — — 1 89 89 1 73 73 Total accruing 18 $ 27,003 $ 27,003 3 $ 4,680 $ 4,680 19 $ 27,092 $ 27,092 6 $ 10,826 $ 10,826 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — — — — The following table presents a summary of all nonaccruing loans restructured in TDRs for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 $ 882 $ 882 — $ — $ — 1 $ 882 $ 882 — $ — $ — Agriculture 9 5,802 5,802 — — — 9 5,802 5,802 6 8,374 8,374 Commercial non-real estate 2 3,699 3,699 — — — 2 3,699 3,699 — — — Residential real estate — — — — — — — — — — — — Consumer — — — — — — — — — — — — Total nonaccruing 12 $ 10,383 $ 10,383 — $ — $ — 12 $ 10,383 $ 10,383 6 $ 8,374 $ 8,374 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — — — — The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the three and nine months ended June 30, 2019 and 2018 , respectively. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 — — 2 130 — — 2 130 Commercial non-real estate — — 2 3,214 — — 2 3,214 Residential real estate — — — — — — — — Consumer — — — — — — — — Total — $ — 4 $ 3,344 — $ — 4 $ 3,344 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 $0.0 million and $0.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.0 million and $0.8 million for the nine months ended June 30, 2019 and 2018 , respectively, of loans removed from TDR status as they were restructured at market terms and are performing. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses is determined based on an ongoing evaluation, driven primarily by monitoring changes in loan risk grades, delinquencies, and other credit risk indicators, which are inherently subjective. The Company considers the uncertainty related to certain industry sectors and the extent of credit exposure to specific borrowers within the portfolio. In addition, consideration is given to concentration risks associated with the various loan portfolios and current economic conditions that might impact the portfolio. The Company also considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry, or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes in unemployment rates, gross domestic product, and consumer bankruptcy filings. Changes to the allowance for loan and lease losses are made by charges to the provision for loan and lease losses, which is reflected on the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans that are 90 days or more past due are put on nonaccrual status unless a repayment is eminent. Loans deemed to be uncollectible are charged off against the allowance for loan and lease losses. Recoveries of amounts previously charged-off are credited to the allowance for loan and lease losses. The allowance for loan and lease losses consist of reserves for probable losses that have been identified related to specific borrowing relationships that are individually evaluated for impairment ("specific reserve"), as well as probable losses inherent in our loan portfolio that are not specifically identified ("collective reserve"). The specific reserve relates to impaired loans. A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due (interest as well as principal) according to the contractual terms of the loan agreement. Specific reserves are determined on a loan-by-loan basis based on management’s best estimate of the Company's exposure, given the current payment status of the loan, the present value of expected payments, and the value of any underlying collateral. Impaired loans also include loans modified in troubled debt restructurings. Generally, the impairment related to troubled debt restructurings is measured based on the fair value of the collateral, less cost to sell, or the present value of expected payments relative to the unpaid principal balance. If the impaired loan is identified as collateral dependent, then the fair value of the collateral method of measuring the amount of the impairment is utilized. This method requires obtaining an independent appraisal of the collateral and reducing the appraised value by applying a discount factor to the appraised value, if necessary, and including costs to sell. Management’s estimate for collective reserves reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates primarily are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes. The following tables present the Company’s allowance for loan and lease losses roll forward for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance April 1, 2019 $ 15,603 $ 33,725 $ 13,049 $ 4,326 $ 374 $ 926 $ 68,003 Charge-offs (45 ) (12,759 ) (4,608 ) (182 ) (18 ) (357 ) (17,969 ) Recoveries 169 — 79 48 15 124 435 Provision 1,606 15,159 8,567 451 150 267 26,200 (Improvement) impairment of ASC 310-30 loans (9 ) — 49 (163 ) — — (123 ) Ending balance June 30, 2019 $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Three Months Ended June 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance April 1, 2018 $ 18,914 $ 24,129 $ 15,730 $ 5,111 $ 279 $ 976 $ 65,139 Charge-offs (1,671 ) (1,978 ) (333 ) (167 ) (60 ) (399 ) (4,608 ) Recoveries 116 103 140 100 48 135 642 Provision 354 3,035 323 (529 ) 20 302 3,505 (Improvement) impairment of ASC 310-30 loans (28 ) — — 38 — — 10 Ending balance June 30, 2018 $ 17,685 $ 25,289 $ 15,860 $ 4,553 $ 287 $ 1,014 $ 64,688 Nine Months Ended June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2018 $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Charge-offs (990 ) (19,704 ) (6,079 ) (824 ) (351 ) (751 ) (28,699 ) Recoveries 428 274 306 335 143 254 1,740 Provision 1,537 27,434 9,250 82 472 431 39,206 (Improvement) impairment of ASC 310-30 loans (428 ) — 49 138 — — (241 ) Ending balance June 30, 2019 $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Nine Months Ended June 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Charge-offs (3,268 ) (4,959 ) (3,176 ) (442 ) (176 ) (1,491 ) (13,512 ) Recoveries 326 275 349 216 90 469 1,725 Provision 3,675 4,331 4,573 (539 ) 44 1,021 13,105 Impairment (improvement) of ASC 310-30 loans 11 (115 ) — (29 ) — — (133 ) Ending balance June 30, 2018 $ 17,685 $ 25,289 $ 15,860 $ 4,553 $ 287 $ 1,014 $ 64,688 The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of June 30, 2019 and September 30, 2018 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $816.9 million measured at fair value, loans held for sale of $6.2 million , and guaranteed loans of $152.6 million for June 30, 2019 and loans measured at fair value of $865.4 million , loans held for sale of $5.5 million , and guaranteed loans of $160.3 million for September 30, 2018 . As of June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 4,058 $ 14,126 $ 5,731 $ 1,846 $ 224 $ — $ 25,985 Collectively evaluated for impairment 13,015 21,734 11,356 2,234 297 960 49,596 ASC 310-30 loans 251 265 49 400 — — 965 Total allowance $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Financing Receivables Individually evaluated for impairment $ 47,746 $ 346,982 $ 29,879 $ 7,190 $ 313 $ — $ 432,110 Collectively evaluated for impairment 4,529,316 1,521,423 1,515,380 766,873 52,318 48,406 8,433,716 ASC 310-30 loans 22,116 2,828 236 32,375 467 — 58,022 Loans Outstanding $ 4,599,178 $ 1,871,233 $ 1,545,495 $ 806,438 $ 53,098 $ 48,406 $ 8,923,848 As of September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,668 $ 9,590 $ 4,508 $ 2,210 $ 61 $ — $ 20,037 Collectively evaluated for impairment 12,430 18,266 9,102 2,277 196 1,026 43,297 ASC 310-30 loans 679 265 — 262 — — 1,206 Total allowance $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Financing Receivables Individually evaluated for impairment $ 40,900 $ 137,225 $ 23,082 $ 6,686 $ 161 $ — $ 208,054 Collectively evaluated for impairment 4,053,712 1,823,947 1,364,511 780,047 48,711 46,487 8,117,415 ASC 310-30 loans 27,001 2,815 416 40,025 588 — 70,845 Loans Outstanding $ 4,121,613 $ 1,963,987 $ 1,388,009 $ 826,758 $ 49,460 $ 46,487 $ 8,396,314 For acquired loans not accounted for under ASC 310-30 (purchased non-impaired), the Company utilizes specific and collective reserve calculation methods similar to originated loans. The required ALLL for these loans is included in the individually evaluated for impairment bucket of the ALLL if the loan is rated substandard or worse, and in the collectively evaluated for impairment bucket for pass rated loans. The Company maintains an ALLL for acquired loans accounted for under ASC 310-30 as a result of impairment to loan pools arising from the periodic re-valuation of these loans. Any impairment in the individual pool is generally recognized in the current period as provision for loan and lease losses. Any improvement in the estimated cash flows, is generally not recognized immediately, but is instead reflected as an adjustment to the related loan pools yield on a prospective basis once any previously recorded impairment has been recaptured. The ALLL for ASC 310-30 loans totaled $1.0 million at June 30, 2019 , compared to $1.2 million at September 30, 2018 . For the three and nine months ended June 30, 2019 , loan pools accounted for under ASC 310-30 had a net reversal of provision of $0.1 million and $0.2 million , respectively. For the three and nine months ended June 30, 2018 , loan pools accounted for under ASC 310-30 had a negligible net impairment of provision and $0.1 million net reversal of provision, respectively. The reserve for unfunded loan commitments was $0.5 million at both June 30, 2019 and September 30, 2018 and is recorded in accrued expenses and other liabilities on the consolidated balance sheets. |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | Accounting for Certain Loans Acquired with Deteriorated Credit Quality In June 2010 and May 2016 , the Company acquired certain loans in the TierOne Bank and HF Financial transactions, respectively, that had deteriorated credit quality known as ASC 310-30 loans or purchased credit impaired loans. Several factors were considered when evaluating whether a loan was considered a purchased credit impaired loan, including the delinquency status of the loan, updated borrower credit status, geographic information and updated loan-to-values ("LTV"). Further, these purchased credit impaired loans had differences between contractual amounts owed and cash flows expected to be collected, that were at least in part, due to credit quality. U.S. GAAP allows purchasers to aggregate purchased credit impaired loans acquired in the same fiscal quarter in one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Loan pools are periodically reassessed to determine expected cash flows. In determining the expected cash flows, the timing of cash flows and prepayment assumptions for smaller, homogeneous loans are based on statistical models that take into account factors such as the loan interest rate, credit profile of the borrowers, the years in which the loans were originated, and whether the loans are fixed or variable rate loans. Prepayments may be assumed on large individual loans that consider similar prepayment factors listed above for smaller homogeneous loans. 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, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Balance at beginning of period $ 33,680 $ 37,841 $ 34,973 $ 44,131 Accretion (1,771 ) (3,993 ) (6,114 ) (11,038 ) Reclassification (to) from nonaccretable difference (3,142 ) 2,554 (92 ) 3,309 Balance at end of period $ 28,767 $ 36,402 $ 28,767 $ 36,402 The reclassifications from nonaccretable difference noted in the table above represent instances where specific pools of loans are expected to perform better over the remaining lives of the loans than expected at the prior re-assessment date. The following table provides purchased credit impaired loans at June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 91,697 $ 22,116 $ 21,865 $ 100,761 $ 27,001 $ 26,322 Agriculture 4,586 2,828 2,563 4,841 2,815 2,551 Commercial non-real estate 7,229 236 187 7,475 416 416 Residential real estate 37,750 32,375 31,975 46,646 40,025 39,763 Consumer 523 467 467 656 588 588 Total lending $ 141,785 $ 58,022 $ 57,057 $ 160,379 $ 70,845 $ 69,640 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. |
FDIC Indemnification Asset
FDIC Indemnification Asset | 9 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
FDIC Indemnification Asset | FDIC Indemnification Asset Under the terms of the purchase and assumption agreement with the FDIC with regard to the TierOne Bank acquisition, the Company is reimbursed for a portion of the losses incurred on covered assets under the non-commercial loss share agreement. As covered assets are resolved, whether through repayment, short sale of the underlying collateral, the foreclosure on or sale of collateral, or the sale or charge-off of loans or other repossessed property, any differences between the carrying value of the covered assets versus the payments received during the resolution process that are reimbursable by the FDIC are recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduce or increase, respectively, the amount recoverable from the FDIC. The following table represents a summary of the activity related to the FDIC indemnification asset for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Balance at beginning of period $ 1,552 $ 3,678 $ 2,502 $ 5,704 Amortization (301 ) (494 ) (1,154 ) (2,244 ) Changes in expected reimbursements from FDIC for changes in expected credit losses 2 (23 ) (11 ) (56 ) Changes in reimbursable expenses — (340 ) (41 ) (1,002 ) Payments (reimbursements) of covered losses to (from) the FDIC 17 169 (26 ) 588 Balance at end of period $ 1,270 $ 2,990 $ 1,270 $ 2,990 The loss claims filed are subject to review, approval, and annual audits by the FDIC or its assigned agents for compliance with the terms in the loss sharing agreement which ends June 4, 2020 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate swaps to manage its interest rate risk and market risk in accommodating the needs of its customers. The Company recognizes all derivatives on the consolidated balance sheet at fair value in either other assets or accrued expenses and other liabilities as appropriate. The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by the Company as of June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Financial institution counterparties $ 1,235,063 $ 787 $ (27,324 ) $ 1,082,630 $ 22,696 $ (2,231 ) Customer counterparties 458,927 34,871 — 217,066 1,533 (2,160 ) Interest rate caps Financial institution counterparties 100 5 — — — — Customer counterparties 100 — (5 ) — — — Risk participation agreements 54,855 — (199 ) — — — Mortgage loan commitments 49,050 44 — 22,195 — (28 ) Mortgage loan forward sale contracts 53,094 — (44 ) 27,408 28 — Total $ 1,851,189 $ 35,707 $ (27,572 ) $ 1,349,299 $ 24,257 $ (4,419 ) Netting of Derivatives The Company records the derivatives on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. When bilateral netting agreements or similar agreements exist between the Company and its counterparties that create a single legal claim or obligation to pay or receive the net amount in settlement of the individual derivative contracts, the Company reports derivative assets and liabilities on a net by derivative contract by counterparty basis. The following tables provide information on the Company's netting adjustments as of June 30, 2019 and September 30, 2018 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of June 30, 2019 Total Derivative Assets $ 35,707 $ (1,895 ) $ 8,652 $ 42,464 Total Derivative Liabilities ¹ (27,572 ) 1,895 25,628 (49 ) 1 There was an additional $12.5 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at June 30, 2019 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ (4,419 ) 2,231 — (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. As with any financial instrument, derivative financial instruments have inherent risk including adverse changes in interest rates. The Company’s exposure to derivative credit risk is defined as the possibility of sustaining a loss due to the failure of the counterparty to perform in accordance with the terms of the contract. Credit risks associated with interest rate swaps are similar to those relating to traditional on-balance sheet financial instruments. The Company manages interest rate swap credit risk with the same standards and procedures applied to its commercial lending activities. Credit-risk-related contingent features The Company has agreements with its derivative counterparties that contain a provision where if the Company or the derivative counterparty fails to maintain its status as a well/adequately capitalized institution, then the other party has the right to terminate the derivative positions and the Company or the derivative counterparty would be required to settle its obligations under the agreements. The Company has minimum collateral pledging thresholds with its Swap Dealers and Futures Clearing Merchant. Beginning in the second quarter of fiscal year 2018, the Company entered into RPAs with some of its derivative counterparties to assume the credit exposure related to interest rate derivative contracts. The Company's loan customer enters into an interest rate swap directly with a derivative counterparty and the Company agrees through an RPA to take on the counterparty's risk of loss on the interest rate swap due to a default by the customer. The notional amounts of RPAs sold were $54.9 million and $37.4 million as of June 30, 2019 and September 30, 2018 , respectively. Assuming all underlying loan customers defaulted on their obligation to perform under the interest rate swap with a derivative counterparty, the exposure from these RPAs would be $0.2 million and $0.4 million at June 30, 2019 and September 30, 2018 , respectively, based on the fair value of the underlying swaps. The effect of derivatives on the consolidated statements of income for the three and nine months ended June 30, 2019 and 2018 was as follows. Amount of (Loss) Gain Recognized in Consolidated Statements of Income Three Months Ended June 30, Nine Months Ended June 30, Location of (Loss) Gain Recognized in Consolidated Statements of Income 2019 2018 2019 2018 (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps and other derivatives Net realized and unrealized (loss) gain on derivatives $ (20,904 ) $ 8,093 $ (50,252 ) $ 29,602 Mortgage loan commitments Net realized and unrealized (loss) gain on derivatives 23 4 44 8 Mortgage loan forward sale contracts Net realized and unrealized (loss) gain on derivatives (23 ) (4 ) (44 ) (8 ) |
The Fair Value Option for Certa
The Fair Value Option for Certain Loans | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
The Fair Value Option For Certain Loans | The Fair Value Option for Certain Loans The Company has elected to measure certain long-term loans at fair value to assist in managing the interest rate risk for longer-term loans. This fair value option was elected upon the origination of these loans. Interest income is recognized in the same manner as interest on non-fair value loans. See Note 16 for additional disclosures regarding the fair value of the fair value option loans. Long-term loans for which the fair value option has been elected had a net favorable difference between the aggregate fair value and the aggregate unpaid loan principal balance and written loan commitment amount of approximately $18.6 million at June 30, 2019 and a net unfavorable difference of approximately $34.8 million at September 30, 2018 . The total unpaid principal balance of these long-term loans was approximately $798.3 million and $900.2 million at June 30, 2019 and September 30, 2018 , respectively. The fair value of these loans is included in total loans in the consolidated balance sheets and are grouped with commercial real estate, agricultural and commercial non-real estate loans in Note 4. As of June 30, 2019 and September 30, 2018 , there were loans with a fair value of $16.4 million and $30.9 million , respectively, which were greater than 90 days past due or in nonaccrual status with an unpaid principal balance of $21.7 million and $34.7 million , respectively. Changes in fair value for items for which the fair value option has been elected and the line items in which these changes are reported within the consolidated statements of income are as follows for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value (dollars in thousands) Long-term loans $ 16,429 $ 16,429 $ (7,370 ) $ (7,370 ) $ 49,662 $ 49,662 $ (30,872 ) $ (30,872 ) For long-term loans, $4.8 million and $0.1 million for the three months ended June 30, 2019 and 2018 and $5.6 million and $0.2 million for the nine months ended June 30, 2019 and 2018 , respectively, of the total change in fair value is attributable to changes in specific credit risk. The gains or losses attributable to changes in instrument-specific credit risk were determined based on an assessment of existing market conditions and credit quality of the underlying loan for the specific portfolio of loans. |
Core Deposits and Other Intangi
Core Deposits and Other Intangibles | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposits and Other Intangibles | Core Deposits and Other Intangibles The following table presents a summary of intangible assets subject to amortization as of June 30, 2019 and September 30, 2018 . Core Deposit Intangible Brand Other Total (dollars in thousands) As of June 30, 2019 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (3,309 ) (6,251 ) (241 ) (9,801 ) Net intangible assets $ 4,030 $ 2,213 $ 297 $ 6,540 As of September 30, 2018 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (2,610 ) (5,828 ) (191 ) (8,629 ) Net intangible assets $ 4,729 $ 2,636 $ 347 $ 7,712 Amortization expense of intangible assets was $0.4 million for both the three months ended June 30, 2019 and 2018 and $1.2 million and $1.3 million for the nine months ended June 30, 2019 and 2018 , respectively. The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in subsequent fiscal years is as follows. Fiscal year Amount (dollars in thousands) Remaining in 2019 $ 366 2020 1,430 2021 1,334 2022 1,249 2023 967 2024 and thereafter 1,194 Total $ 6,540 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Jun. 30, 2019 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase generally mature overnight following the transaction date. Securities underlying the agreements had an amortized cost of approximately $96.3 million and $109.9 million and fair value of approximately $95.6 million and $104.6 million at June 30, 2019 and September 30, 2018 , respectively. In most cases, in alignment with the repurchase agreements in place with our customers, the Company over-collateralizes the agreements at 102% of total funds borrowed to protect the purchaser from changes in market value. Additionally, the Company utilizes held-in-custody procedures to ensure the securities sold under repurchase agreements are unencumbered. The following tables present the gross obligation by the class of collateral pledged and the remaining contractual maturity of the agreements at June 30, 2019 and September 30, 2018 . June 30, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total (dollars in thousands) Repurchase agreements Mortgage-backed securities $ 56,925 $ — $ — $ — $ 56,925 Total repurchase agreements $ 56,925 $ — $ — $ — $ 56,925 September 30, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total (dollars in thousands) Repurchase agreements Mortgage-backed securities $ 90,907 $ — $ — $ — $ 90,907 Total repurchase agreements $ 90,907 $ — $ — $ — $ 90,907 |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 9 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings FHLB advances and other borrowings consist of the following at June 30, 2019 and September 30, 2018 . June 30, September 30, 2019 2018 (dollars in thousands) Short-term borrowings: Notes payable to FHLB, interest rates from 2.38% to 2.42% $ 200,000 $ — FHLB fed funds advance, interest rate from 2.38% to 2.47% and matured in July 2019 80,000 100,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.36% to 3.66% and maturity dates from March 2021 to September 2024, collateralized by real estate loans, with various call dates at the option of the FHLB 325,000 175,000 Total $ 605,000 $ 275,000 As of June 30, 2019 and September 30, 2018 , the Company had a borrowing capacity of $1.43 billion and $1.59 billion , respectively, with the FRB Discount Window. Principal balances of loans pledged to FRB Discount Window to collateralize the borrowing totaled $1.73 billion at June 30, 2019 and $1.89 billion at September 30, 2018 . The Company has secured this line for contingency funding. As of June 30, 2019 and September 30, 2018 , based on its collateral pledged, the additional borrowing capacity of the Company with the FHLB was $1.41 billion and $1.82 billion , respectively. Principal balances of loans pledged to the FHLB to collateralize notes payable totaled $3.97 billion and $3.95 billion at June 30, 2019 and September 30, 2018 , respectively. The Company purchased letters of credit from the FHLB to pledge as collateral on public deposits. The amount outstanding was $170.0 million and $150.0 million at June 30, 2019 and September 30, 2018 , respectively. The Company had additional letters of credit from the FHLB of $14.5 million and $16.4 million at June 30, 2019 and September 30, 2018 , respectively, for other purposes. As of June 30, 2019 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) Remaining in 2019 $ 280,000 2020 — 2021 120,000 2022 60,000 2023 85,000 2024 and thereafter 60,000 Total $ 605,000 |
Subordinated Debentures and Sub
Subordinated Debentures and Subordinated Notes Payable | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Subordinated Notes Payable | Subordinated Debentures and Subordinated Notes Payable Junior Subordinated Deferrable Interest Debentures The Company has seven trusts which were created or assumed as part of prior acquisitions that as of June 30, 2019 have issued and outstanding in the aggregate 73,400 shares, $1,000 par value, of Company Obligated Mandatorily Redeemable Preferred Securities ("Preferred Securities"). These seven trusts were established and exist for the sole purpose of issuing Preferred Securities and investing the proceeds in junior subordinated deferrable interest debentures ("Debentures") issued by the Company. The Debentures constitute the sole assets of the seven trusts. The Preferred Securities provide for cumulative cash distributions calculated at a rate based on three month LIBOR plus a range from 1.48% to 3.35% adjusted quarterly. The Company may, at one or more times, defer interest payments on the Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock, but not beyond the respective maturity date. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures have redemption dates ranging from January 7, 2033 to October 1, 2037 ; however, the Company has the option to shorten the respective maturity date for all seven Preferred Securities as the call option date has passed. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of the payment to all of the Company's indebtedness and senior to the Company's common and preferred stock. The trusts’ ability to pay amounts due on the Preferred Securities is solely dependent upon the Company making payment on the related Debentures. The Company’s obligation under the Debentures and relevant trust agreements constitute a full, irrevocable, and unconditional guarantee on a subordinated basis by it of the obligations of the trusts under the Preferred Securities. For regulatory purposes, the Debentures qualify as elements of capital. As of June 30, 2019 and September 30, 2018 , $73.7 million and $73.6 million , respectively, of Debentures, net of fair value adjustment, were eligible for treatment as Tier 1 capital. Relating to the trusts, the Company held as assets $2.5 million in common shares at June 30, 2019 and September 30, 2018 , which are included in other assets on the consolidated balance sheets. Subordinated Notes Payable In 2015, the Company issued $35.0 million of 4.875% fixed-to-floating rate subordinated notes that mature on August 15, 2025 through a private placement. The notes, which qualify as Tier 2 capital under Capital Rules in effect at June 30, 2019 , have an interest rate of 4.875% per annum, payable semi-annually on each February 15 and August 15 , which commenced on February 15, 2016 until August 15, 2020 , or the date of earlier redemption, and then from August 15, 2020 to the stated maturity date or earlier redemption, the notes will bear interest at a rate per annum equal to three month LIBOR for the related interest period plus 3.15% , payable quarterly on each November 15 , February 15 , April 15 and August 15 . The notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Company's subsidiary bank. The Company may elect to redeem the notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after August 15, 2020 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of bankruptcy, insolvency or reorganization. Unamortized debt issuance costs related to these notes, which are included in Subordinated Debentures and Subordinated Notes Payable, totaled $0.1 million at June 30, 2019 and September 30, 2018 . Proceeds from the private placement of subordinated notes repaid outstanding subordinated debt. Subordinated debentures and subordinated notes payable are summarized as follows. June 30, 2019 September 30, 2018 Amount Outstanding Common Shares Held in Other Assets Amount Outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to non-consolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR 30,928 928 30,928 928 SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR 2,062 62 2,062 62 HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR 5,155 155 5,155 155 HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR 7,217 217 7,217 217 HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR 5,310 310 5,310 310 HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR 2,155 155 2,155 155 Total junior subordinated debentures payable 75,920 $ 2,520 75,920 $ 2,520 Less: fair value adjustment ¹ (2,246 ) (2,317 ) Total junior subordinated debentures payable, net of fair value adjustment 73,674 73,603 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (80 ) (135 ) Total subordinated notes payable 34,920 34,865 Total subordinated debentures and subordinated notes payable $ 108,594 $ 108,468 1 Adjustment reflects the fair value adjustments related to the junior subordinated deferrable interest debentures assumed as part of the HF Financial acquisition. |
Profit Sharing Plan
Profit Sharing Plan | 9 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Profit Sharing Plan | Profit Sharing Plan The Company participates in a multiple employer 401(k) profit sharing plan ("401(k) Plan"). All employees are eligible to participate, beginning with the first day of the month coincident with or immediately following the completion of one year of service and having reached the age of 21 . In addition to employee contributions, the Company may contribute discretionary amounts for eligible participants. Contribution rates for participating employees must be equal. The Company contributed $1.5 million to the 401(k) Plan for the three months ended June 30, 2019 and 2018 and $4.4 million and $4.5 million for the nine months ended June 30, 2019 and 2018 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On September 26, 2014 , the Board of Directors adopted, and on October 10, 2014 , NAB, at that time our controlling shareholder, approved the Great Western Bancorp, Inc. 2014 Omnibus Incentive Compensation Plan ("2014 Plan"), the Great Western Bancorp, Inc. 2014 Non-Employee Director Plan ("2014 Director Plan"), and the Great Western Bancorp, Inc. Executive Incentive Compensation Plan ("Bonus Plan"), collectively ("the Plans"), which provide for the issuance of restricted share units and performance based share units to certain officers, employees and directors of the Company. On February 22, 2018, our stockholders approved amendments to the 2014 Plan and the 2014 Director Plan to increase the number of shares available for future grants under the Plans. The Plans were primarily established to enhance the Company’s ability to attract, retain and motivate employees. The Company’s Board of Directors, the Compensation Committee of the Board of Directors ("Compensation Committee"), or executive management upon delegation of the Compensation Committee has exclusive authority to select the employees and others, including directors, to receive the awards and to establish the terms and conditions of each award made pursuant to the Company’s stock-based compensation plans. Stock units issued under the Company’s restricted and performance based stock plans may not be sold or otherwise transferred until the vesting period has been met and, if applicable, performance objectives have been obtained. During the vesting periods, participants do not have voting rights and dividends are accumulated until the time upon which the award vests. Upon specified events, as defined in the Plans, stock unit awards that have not vested and/or performance hurdles that have not been met will be forfeited. Based on the substantive terms of each award, restricted and performance-based awards are classified as equity awards and accounted for under the treasury stock method. The fair value of equity-classified awards is based on the market price of the stock on the measurement date and is amortized as compensation expense on a straight-line basis over the vesting or performance period. Stock compensation is recognized based on the number of awards to vest using actual forfeiture amounts. For performance-based stock awards, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance targets to determine the amount of compensation expense to be recognized. The estimate is reevaluated quarterly and total compensation expense is adjusted for any change in the current period. Stock-based compensation expense is included in salaries and employee benefits expense in the consolidated statements of income. Stock compensation expense was $1.4 million for both of the three months ended June 30, 2019 and 2018 and $4.5 million and $4.3 million for the nine months ended June 30, 2019 and 2018 , respectively. Related income tax benefits recognized were $0.4 million for both of the three months ended June 30, 2019 and 2018 and $1.1 million and $1.4 million for the nine months ended June 30, 2019 and 2018 , respectively. The following is a summary of the Plans’ restricted share and performance-based stock award activity as of June 30, 2019 and September 30, 2018 . The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. June 30, 2019 September 30, 2018 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 163,287 $ 37.86 180,337 $ 33.06 Granted 106,364 37.29 89,376 41.07 Vested (75,143 ) 38.65 (97,682 ) 32.11 Forfeited (1,759 ) 38.86 (8,744 ) 35.99 Canceled — — — — Restricted shares, end of period 192,749 $ 37.22 163,287 $ 37.86 Vested, but not issuable at end of period 50,770 $ 33.88 39,514 $ 32.90 Performance Shares Performance shares, beginning of fiscal year 175,196 $ 36.29 133,604 $ 33.39 Granted 54,317 36.47 53,682 29.52 Vested (59,803 ) 30.78 (7,017 ) 18.00 Forfeited (1,305 ) 39.09 (5,073 ) 37.75 Canceled — — — — Performance shares, end of period 168,405 $ 38.50 175,196 $ 36.29 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 As of June 30, 2019 , there was $6.2 million of unrecognized compensation cost related to non-vested restricted stock awards expected to be recognized over a period of 2.4 years . The fair value of the vested, but not issued stock awards was $2.0 million and $1.9 million at June 30, 2019 and September 30, 2018 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value are as follows. Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Level 1 inputs are considered to be the most transparent and reliable and Level 3 inputs are considered to be the least transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (Level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the actual financial instrument or of the underlying collateral. Although in some instances, third party price indications may be available, limited trading activity can challenge the observability of these quotations. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Securities Available for Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows and classified as Level 2 securities. Level 2 securities include mortgage-backed, states and political subdivisions, and other securities. Where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Level 3 securities were immaterial at June 30, 2019 and September 30, 2018 . Interest Rate Swaps and Loans Interest rate swaps are valued by the Company's Swap Dealers using cash flow valuation techniques with observable market data inputs. The fair value of loans accounted for under the fair value option represents the net carrying value of the loan, plus the equal and opposite amount of the value of the swap needed to offset the interest rate risk and an adjustment for credit risk based on our assessment of existing market conditions for the specific portfolio of loans. This is used due to the strict prepayment penalties put in the loan terms to cover the cost of exiting the interest rate swap of the loans in the case of early prepayment or termination. The adjustment for credit risk on loans accounted for under the fair value option is not significant to the overall fair value of the loans. The fair values estimated by the Company's Swap Dealers use interest rates that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The Company has entered into Collateral Agreements with its Swap Dealers and Futures Clearing Merchant which entitle it to receive collateral to cover market values on derivatives which are in asset position, thus a credit risk adjustment on interest rate swaps is not warranted. The Company regularly enters into interest rate lock commitments on mortgage loans to be held for sale with corresponding forward sales contracts related to these interest rate lock commitments, the fair values of which are calculated by applying observable market values from Fannie Mae TBA pricing to each interest rate lock commitment and forward sales contract, therefore, are classified within Level 2 of the valuation hierarchy. The Company also has back-to-back swaps with loan customers, with corresponding swaps with an outside third party in exact offsetting terms. Loan Servicing Rights Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts (Level 3), when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against market data (Level 3). The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2019 and September 30, 2018 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ 94,534 $ 94,534 $ — $ — Mortgage-backed securities 1,635,424 — 1,635,424 — States and political subdivision securities 68,451 — 64,331 4,120 Other 1,021 — 1,021 — Total securities available for sale $ 1,799,430 $ 94,534 $ 1,700,776 $ 4,120 Derivatives-assets $ 42,464 $ — $ 42,464 $ — Derivatives-liabilities 49 — 49 — Fair value loans 816,851 — 816,851 — Loan servicing rights 2,481 — — 2,481 As of September 30, 2018 U.S. Treasury securities $ 167,172 $ 167,172 $ — $ — Mortgage-backed securities 1,149,707 — 1,149,707 — States and political subdivision securities 67,775 — 66,805 970 Other 996 — 996 — Total securities available for sale $ 1,385,650 $ 167,172 $ 1,217,508 $ 970 Derivatives-assets $ 1,911 $ — $ 1,911 $ — Derivatives-liabilities 2,188 — 2,188 — Fair value loans 865,386 — 865,386 — Loan servicing rights 3,087 — — 3,087 The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Other securities available for sale Balance, beginning of period $ 1,311 $ 965 $ 970 $ 1,069 Additions 3,000 — 3,350 — Principal paydown (191 ) (135 ) (200 ) (239 ) Balance, end of period $ 4,120 $ 830 $ 4,120 $ 830 Loan servicing rights Balance, beginning of period $ 2,674 $ 3,586 $ 3,087 $ 4,074 Realized and unrealized loss ¹ (193 ) (258 ) (606 ) (746 ) Balance, end of period $ 2,481 $ 3,328 $ 2,481 $ 3,328 1 Realized and unrealized loss related to loan servicing rights are reported as a component of mortgage banking income, net on the consolidated statements of income. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Other Repossessed Property Other repossessed property consists of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other repossessed assets. Other repossessed property is recorded initially at fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically, and the assets may be marked down further to fair value less selling costs, reflecting a valuation allowance. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods. These measurements are classified as Level 3. Impaired Loans (Collateral Dependent) Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of the impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor, if necessary, to the appraised value and including costs to sell. Because many of these inputs are not observable, the measurements are classified as Level 3. Mortgage Loans Held for Sale Fair value of mortgage loans held for sale is based on either quoted prices for the same or similar loans, or values obtained from third parties, or are estimated for portfolios of loans with similar financial characteristics and are therefore considered a Level 2 valuation. Property Held for Sale This real estate property is carried in premises and equipment as property held for sale at fair value based upon the transactional price if available, or the appraised value of the property. The following tables present the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2019 and September 30, 2018 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of June 30, 2019 Other repossessed property $ 35,804 $ — $ — $ 35,804 Impaired loans 406,125 — — 406,125 Loans held for sale, at lower of cost or fair value 6,241 — 6,241 — Property held for sale 3,208 — — 3,208 As of September 30, 2018 Other repossessed property $ 22,225 $ — $ — $ 22,225 Impaired loans 188,017 — — 188,017 Loans held for sale, at lower of cost or fair value 5,456 — 5,456 — Property held for sale 1,104 — — 1,104 The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at June 30, 2019 were as follows. Fair Value of Assets / (Liabilities) at June 30, 2019 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 35,804 Appraisal value Property specific adjustment N/A N/A Impaired loans 406,125 Appraisal value Property specific adjustment N/A N/A Property held for sale 3,208 Appraisal value Property specific adjustment N/A N/A Disclosures about Fair Value of Financial Instruments The following section summarizes the estimated fair value for financial instruments accounted for at amortized cost as of as of June 30, 2019 and September 30, 2018 . Significant assets and liabilities that are not considered financial instruments include premises and equipment, deferred income taxes, goodwill, and core deposit and other intangibles. Additionally, in accordance with the disclosure guideline, receivables and payables due in one year or less, insurance contracts, equity investments not accounted for at fair value, and deposits with no defined or contractual maturities are excluded. Off-balance sheet instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial. Fair values for on-balance sheet instruments as of June 30, 2019 and September 30, 2018 are as follows. June 30, 2019 September 30, 2018 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 225,356 $ 225,356 $ 298,696 $ 298,696 Loans, net, excluding fair valued loans, loans held for sale and impaired loans ¹ Level 3 8,657,754 8,691,223 8,357,065 8,231,829 Liabilities Time deposits Level 2 1,975,699 1,982,294 1,847,078 1,848,550 FHLB advances and other borrowings Level 2 605,000 615,482 275,000 275,797 Securities sold under repurchase agreements Level 2 56,925 56,925 90,907 90,907 Subordinated debentures and subordinated notes payable Level 2 108,594 101,069 108,468 107,841 1 Includes $14.3 million and $13.0 million of net deferred loan fees at June 30, 2019 and September 30, 2018, respectively, of which carrying value approximates fair value. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding determined for the basic earnings per share calculation plus the dilutive effect of stock compensation using the treasury stock method. The following information was used in the computation of basic and diluted earnings per share (EPS) for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands, except per share data) Net income $ 26,783 $ 45,874 $ 117,080 $ 115,636 Weighted average common shares outstanding 56,995,007 58,948,944 57,321,561 58,930,963 Dilutive effect of stock based compensation 115,096 221,114 86,462 203,672 Weighted average common shares outstanding for diluted earnings per share calculation 57,110,103 59,170,058 57,408,023 59,134,635 Basic earnings per share $ 0.47 $ 0.78 $ 2.04 $ 1.96 Diluted earnings per share $ 0.47 $ 0.78 $ 2.04 $ 1.96 The Company had no shares of unvested performance stock as of June 30, 2019 and 2018 , which were not included in the computation of diluted earnings per common share because performance conditions for vesting had not been met. The Company had 33,864 and no shares of anti-dilutive stock awards outstanding as of June 30, 2019 and 2018 , respectively. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Policies (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP and reflect all adjustments that are, in the opinion of management, necessary for the fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal recurring nature. Certain previously reported amounts have been reclassified to conform to the current presentation. The unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended September 30, 2018 , which includes a description of significant accounting policies. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year or any other period. The accompanying unaudited consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition We adopted ASU 2014-09, " Revenue from Contracts with Customers (Topic 606) " and subsequent related ASUs effective October 1, 2018 using the modified retrospective approach, which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures and in "Note 1. Nature of Operations and Summary of Significant Policies ," in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our consolidated income statements as components of noninterest income, are as follows: Service charges and fees on deposit accounts. Service charges on deposit accounts are earned for account maintenance and overdraft, wire and treasury management services. Revenue is recognized at the time the services are performed and is included in service charges and other fees within noninterest income on the consolidated statements of income. Interchange and merchant services income. Interchange and merchant services income are earned from credit and debit card payment processing through card association networks, merchant services and other card related services. Fees for these services are primarily based on interchange rates set by the networks and transaction volumes and are recognized as transactions are processed and settled with networks on behalf of card holders. These fees are presented net of direct expenses, including reward costs, associated with credit and debit card interchange income in service charges and other fees which are included in noninterest income on the consolidated statements of income. Wealth management and trust fee income. Wealth management and trust fees are earned for asset management, custody and recordkeeping, investment advisory and administrative services. Revenue is recognized as the services are performed. Brokerage charges are recorded as a net reduction in wealth management fees which are included in noninterest income on the consolidated statements of income. Other noninterest income. Other noninterest income primarily includes such items as letter of credit fees, gains on sale of loans held for sale and servicing fees, none of which are subject to the requirements of ASC Topic 606. The following table presents total noninterest income segregated between contracts with customers within the scope of ASC Topic 606 and those within the scope of other GAAP Topics. The following additionally presents revenues from customers that are included within noninterest income. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Noninterest income Service charges and other fees $ 10,321 $ 12,655 $ 32,219 $ 37,879 Wealth management fees 2,234 2,242 6,592 6,761 Other 617 1,522 2,317 5,523 Noninterest income from contracts with customers within the scope of ASC Topic 606 ¹ 13,172 16,419 41,128 50,163 Noninterest income within the scope of other GAAP Topics ² (2,406 ) 2,520 4,581 4,192 Total noninterest income $ 10,766 $ 18,939 $ 45,709 $ 54,355 1 Amounts for periods after October 1, 2018 are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers , except for out of scope amounts. Amounts for periods prior to October 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition , and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers . 2 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's consolidated statements of income. At June 30, 2019 , the Company does not have any material contract assets, liabilities, or other receivables recorded on its consolidated balance sheets relating to its revenue streams within the scope of ASC Topic 606. Additionally, the Company's contracts generally do not contain terms that require significant judgment to determine the amount of revenue to recognize. Practical expedients The Company has elected the practical expedient to exclude the disclosure of unsatisfied performance obligations for contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. The Company recognizes incremental costs of obtaining those contracts as an expense when incurred. |
Subsequent Events | Subsequent Events The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. Other than those described below, there were no other material events or transactions that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
New Accounting Pronouncements | Accounting Standards Adopted in Fiscal Year 2019 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which implements a more robust framework that clarifies the principles for recognizing revenue and gives greater consistency and comparability in revenue recognition practices. In the new framework, an entity recognizes revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. The new model requires the identification of performance obligations included in the contract with customers, a determination of the transaction price and an allocation of the price to those performance obligations. The entity recognizes revenue when performance obligations are satisfied. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance pertaining to the identification of performance obligations and the licensing implementation. In May 2016, the FASB issued ASU 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related to the adoption of ASU 2014-09. In December 2016, the FASB issued ASU 2016-20, which made technical corrections and improvements to the previous ASUs issued. The standard permits the use of either the retrospective or cumulative effect transition method. The standard, along with subsequent guidance from FASB, lists several items that are specifically out of scope for ASU 2014-09, including but not limited to core interest income, derivative instruments, investments, and loan origination fees. The Company adopted this standard and subsequent related ASUs October 1, 2018 using the modified retrospective method. Furthermore, the Company prospectively changed the presentation of direct expenses, including reward costs, associated with credit and debit card interchange income previously included in data processing and communication expense which are now netted against interchange income in service charges and other fees, which is included in noninterest income on the consolidated statements of income. Brokerage charges previously included in professional fees are now netted against wealth management fees, which is included in noninterest income on the consolidated statements of income. The net quantitative impact of these presentation changes decreased both revenue and expenses by $1.5 million and $5.2 million for the three and nine months ended June 30, 2019 ; however, these presentation changes did not have an impact on net income. Prior period balances have not been restated to reflect these presentation changes. There were no significant cumulative effect adjustments as a result of implementation as our current revenue recognition policies generally conform with the principals in ASC Topic 606. For additional information, see "Note 1. Nature of Operations and Summary of Significant Policies ." Accounting Standards Not Yet Adopted in Fiscal Year 2019 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes in the Disclosure Requirements for Fair Value Measurement , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Entities are also allowed to elect to early adopt the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until after their effective date. As ASU 2018-13 only revises disclosure requirements, the Company does not believe this ASU will have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 is to be applied to all existing hedging relationships on the date of adoption and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period, with the effect of adoption reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of ASU 2017-12 on our consolidated financial statements and does not expect to early adopt this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which addresses timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires institutions to measure all expected credit losses related to financial assets measured at amortized costs with an expected loss model based on historical experience, current conditions and reasonable and supportable forecasts relevant to affect the collectability of the financial assets, which is referred to as the current expected credit loss (CECL) model. ASU 2016-13 requires enhanced disclosures, including qualitative and quantitative requirements, to help understand significant estimates and judgments used in estimating credit losses, as well as provide additional information about the amounts recorded in the financial statements. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments, Credit Losses , which made technical corrections and improvements to the previous ASU issued. These ASUs will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The amendment requires the use of the modified retrospective approach for adoption. The Company continues to make progress on the implementation plan and has recently started the User Acceptance Testing phase with the third party vendor software. The Company does not expect to early adopt this standard and is currently evaluating the potential impact on our consolidated financial statements; however, since the magnitude of the anticipated change in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which requires that lessees recognize the assets and liabilities arising from leases on the balance sheet and disclosing key information about leasing arrangements. Lessees will be required to recognize an obligation for future lease payments measured on a discounted basis and a related right-of-use asset. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , and ASU 2018-11, Leases (Topic 842), Targeted Improvements , which made technical corrections and improvements to the previous ASU issued. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors , which allows lessors to exclude sales tax from consideration of the contract through a policy election and clarifies treatment of certain lessor costs and variable payments for contracts with lease and nonlease components. These ASUs will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance will be effective with respect to the Company beginning fiscal year 2020. The Company is in the final stages of reviewing existing lease agreements for which the amended guidance is to be applied and is in the process of determining which practical expedients will be elected for transition and is currently evaluating the potential impact on our consolidated financial statements. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Policies (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of Noninterest Income | The following table presents total noninterest income segregated between contracts with customers within the scope of ASC Topic 606 and those within the scope of other GAAP Topics. The following additionally presents revenues from customers that are included within noninterest income. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Noninterest income Service charges and other fees $ 10,321 $ 12,655 $ 32,219 $ 37,879 Wealth management fees 2,234 2,242 6,592 6,761 Other 617 1,522 2,317 5,523 Noninterest income from contracts with customers within the scope of ASC Topic 606 ¹ 13,172 16,419 41,128 50,163 Noninterest income within the scope of other GAAP Topics ² (2,406 ) 2,520 4,581 4,192 Total noninterest income $ 10,766 $ 18,939 $ 45,709 $ 54,355 1 Amounts for periods after October 1, 2018 are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers , except for out of scope amounts. Amounts for periods prior to October 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition , and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers . 2 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's consolidated statements of income. |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of investments by contractual maturity | The amortized cost and approximate fair value of investments in securities, all of which are classified as available for sale according to management’s intent, are summarized as follows. Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ 93,936 $ 690 $ (92 ) $ 94,534 Mortgage-backed securities: Government National Mortgage Association 485,426 2,902 (4,999 ) 483,329 Federal Home Loan Mortgage Corporation 466,761 7,426 (934 ) 473,253 Federal National Mortgage Association 340,047 3,868 (812 ) 343,103 Small Business Assistance Program 331,695 4,101 (57 ) 335,739 States and political subdivision securities 68,290 393 (232 ) 68,451 Other 1,006 15 — 1,021 Total $ 1,787,161 $ 19,395 $ (7,126 ) $ 1,799,430 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 168,394 $ — $ (1,222 ) $ 167,172 Mortgage-backed securities: Government National Mortgage Association 442,458 35 (16,335 ) 426,158 Federal Home Loan Mortgage Corporation 297,380 — (7,055 ) 290,325 Federal National Mortgage Association 188,192 — (6,081 ) 182,111 Small Business Assistance Program 260,458 — (9,345 ) 251,113 States and political subdivision securities 69,566 4 (1,795 ) 67,775 Other 1,006 — (10 ) 996 Total $ 1,427,454 $ 39 $ (41,843 ) $ 1,385,650 The amortized cost and approximate fair value of debt securities available for sale as of June 30, 2019 and September 30, 2018 , by contractual maturity, are shown below. Maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without penalty. June 30, 2019 September 30, 2018 Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ 56,440 $ 56,341 $ 111,842 $ 111,221 Due after one year through five years 92,477 93,181 114,920 113,069 Due after five years through ten years 13,309 13,463 11,076 10,535 Due after ten years — — 122 122 162,226 162,985 237,960 234,947 Mortgage-backed securities 1,623,929 1,635,424 1,188,488 1,149,707 Securities without contractual maturities 1,006 1,021 1,006 996 Total $ 1,787,161 $ 1,799,430 $ 1,427,454 $ 1,385,650 |
Schedule of gross unrealized losses on investments | The following table presents the Company’s gross unrealized losses and approximate fair value in investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ — $ — $ 44,552 $ (92 ) $ 44,552 $ (92 ) Mortgage-backed securities 8,186 (35 ) 514,300 (6,767 ) 522,486 (6,802 ) States and political subdivision securities — — 35,803 (232 ) 35,803 (232 ) Other — — — — — — Total $ 8,186 $ (35 ) $ 594,655 $ (7,091 ) $ 602,841 $ (7,126 ) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ (1,222 ) $ — $ — $ 167,172 $ (1,222 ) Mortgage-backed securities 416,677 (8,427 ) 709,387 (30,389 ) 1,126,064 (38,816 ) States and political subdivision securities 23,534 (250 ) 42,282 (1,545 ) 65,816 (1,795 ) Other 996 (10 ) — — 996 (10 ) Total $ 608,379 $ (9,909 ) $ 751,669 $ (31,934 ) $ 1,360,048 $ (41,843 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loans receivable | The following table presents the composition of loans as of June 30, 2019 and September 30, 2018 . June 30, September 30, 2019 2018 (dollars in thousands) Commercial real estate $ 5,199,742 $ 4,629,330 Agriculture 2,049,395 2,182,688 Commercial non-real estate 1,747,501 1,699,987 Residential real estate 816,751 837,569 Consumer 53,277 49,689 Other 48,406 46,487 Ending balance 9,915,072 9,445,750 Less: Unamortized discount on acquired loans (15,549 ) (18,283 ) Unearned net deferred fees and costs and loans in process (12,552 ) (11,543 ) Total $ 9,886,971 $ 9,415,924 |
Schedule of the Company's nonaccrual loans | The following table presents the Company’s nonaccrual loans at June 30, 2019 and September 30, 2018 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of June 30, 2019 and September 30, 2018 , were $0.0 million and $0.2 million , respectively. June 30, September 30, 2019 2018 (dollars in thousands) Nonaccrual loans Commercial real estate $ 18,401 $ 22,871 Agriculture 84,943 107,198 Commercial non-real estate 10,044 6,887 Residential real estate 2,393 3,549 Consumer 85 61 Total $ 115,866 $ 140,566 |
Schedule of the composition of the loan portfolio by internal risk rating | 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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . As of June 30, 2019 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,581,421 $ 1,448,932 $ 1,508,930 $ 768,313 $ 52,030 $ 48,406 $ 8,408,032 Watchlist 49,758 98,142 57,867 3,846 756 — 210,369 Substandard 47,931 342,651 28,760 6,895 312 — 426,549 Doubtful 59 3,013 512 38 — — 3,622 Loss — — — — — — — Ending balance 4,679,169 1,892,738 1,596,069 779,092 53,098 48,406 9,048,572 Loans covered by a FDIC loss sharing agreement — — — 34,102 — — 34,102 Total $ 4,679,169 $ 1,892,738 $ 1,596,069 $ 813,194 $ 53,098 $ 48,406 $ 9,082,674 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, 2018 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,108,314 $ 1,610,291 $ 1,401,418 $ 779,610 $ 48,979 $ 46,487 $ 7,995,099 Watchlist 53,150 239,392 19,503 4,548 322 — 316,915 Substandard 41,184 137,205 20,117 6,366 159 — 205,031 Doubtful 93 2 2,277 37 — — 2,409 Loss — — — — — — — Ending balance 4,202,741 1,986,890 1,443,315 790,561 49,460 46,487 8,519,454 Loans covered by a FDIC loss sharing agreement — — — 42,627 — — 42,627 Total $ 4,202,741 $ 1,986,890 $ 1,443,315 $ 833,188 $ 49,460 $ 46,487 $ 8,562,081 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. |
Schedule of past due loans | The following table presents the Company’s past due loans at June 30, 2019 and September 30, 2018 . 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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables (dollars in thousands) As of June 30, 2019 Commercial real estate $ 1,977 $ 1,782 $ 4,246 $ 8,005 $ 4,671,164 $ 4,679,169 Agriculture 1,827 3,574 27,122 32,523 1,860,215 1,892,738 Commercial non-real estate 1,179 1,533 2,732 5,444 1,590,625 1,596,069 Residential real estate 826 245 780 1,851 777,241 779,092 Consumer 147 81 19 247 52,851 53,098 Other — — — — 48,406 48,406 Ending balance 5,956 7,215 34,899 48,070 9,000,502 9,048,572 Loans covered by a FDIC loss sharing agreement 1,559 537 470 2,566 31,536 34,102 Total $ 7,515 $ 7,752 $ 35,369 $ 50,636 $ 9,032,038 $ 9,082,674 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables (dollars in thousands) As of September 30, 2018 Commercial real estate $ 920 $ 551 $ 9,135 $ 10,606 $ 4,192,135 $ 4,202,741 Agriculture 1,243 2,042 51,579 54,864 1,932,026 1,986,890 Commercial non-real estate 551 16 4,068 4,635 1,438,680 1,443,315 Residential real estate 913 200 1,747 2,860 787,701 790,561 Consumer 83 47 1 131 49,329 49,460 Other — — — — 46,487 46,487 Ending balance 3,710 2,856 66,530 73,096 8,446,358 8,519,454 Loans covered by a FDIC loss sharing agreement 30 233 471 734 41,893 42,627 Total $ 3,740 $ 3,089 $ 67,001 $ 73,830 $ 8,488,251 $ 8,562,081 |
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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . June 30, 2019 September 30, 2018 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 $ 24,856 $ 25,699 $ 4,058 $ 25,136 $ 25,223 $ 3,668 Agriculture 109,245 125,164 14,126 60,053 76,874 9,590 Commercial non-real estate 19,933 21,375 5,731 14,177 17,241 4,508 Residential real estate 3,807 4,373 1,846 4,509 5,153 2,210 Consumer 313 318 224 160 165 61 Total impaired loans with an allowance recorded 158,154 176,929 25,985 104,035 124,656 20,037 With no allowance recorded: Commercial real estate 22,890 60,927 — 15,764 58,141 — Agriculture 237,737 257,431 — 77,172 80,355 — Commercial non-real estate 9,946 18,004 — 8,905 18,047 — Residential real estate 3,383 5,437 — 2,177 4,574 — Consumer — 108 — 1 118 — Total impaired loans with no allowance recorded 273,956 341,907 — 104,019 161,235 — Total impaired loans $ 432,110 $ 518,836 $ 25,985 $ 208,054 $ 285,891 $ 20,037 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended Nine Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 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 Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 40,199 $ 718 $ 61,257 $ 402 $ 39,399 $ 1,415 $ 57,818 $ 2,456 Agriculture 253,240 7,147 126,262 1,592 196,563 10,349 125,047 3,763 Commercial non-real estate 26,381 468 28,915 354 24,518 1,146 30,402 1,130 Residential real estate 6,911 123 6,780 54 6,831 305 7,273 335 Consumer 261 8 199 3 237 19 234 10 Total $ 326,992 $ 8,464 $ 223,413 $ 2,405 $ 267,548 $ 13,234 $ 220,774 $ 7,694 The following table provides purchased credit impaired loans at June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 91,697 $ 22,116 $ 21,865 $ 100,761 $ 27,001 $ 26,322 Agriculture 4,586 2,828 2,563 4,841 2,815 2,551 Commercial non-real estate 7,229 236 187 7,475 416 416 Residential real estate 37,750 32,375 31,975 46,646 40,025 39,763 Consumer 523 467 467 656 588 588 Total lending $ 141,785 $ 58,022 $ 57,057 $ 160,379 $ 70,845 $ 69,640 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. |
Summary of troubled debt restructurings on accruing and nonaccrual loans | The following table presents the recorded value of the Company’s TDR balances as of June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 17,205 $ 933 $ 2,649 $ 2,616 Agriculture 23,853 27,551 13,248 73,741 Commercial non-real estate 2,504 4,379 3,420 656 Residential real estate 337 109 389 143 Consumer 89 57 77 — Total $ 43,988 $ 33,029 $ 19,783 $ 77,156 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 nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 2 $ 15,466 $ 15,466 — $ — $ — 2 $ 15,466 $ 15,466 — $ — $ — Agriculture 16 11,537 11,537 3 4,680 4,680 16 11,537 11,537 5 10,753 10,753 Commercial non-real estate — — — — — — — — — — — — Residential real estate — — — — — — — — — — — — Consumer — — — — — — 1 89 89 1 73 73 Total accruing 18 $ 27,003 $ 27,003 3 $ 4,680 $ 4,680 19 $ 27,092 $ 27,092 6 $ 10,826 $ 10,826 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — — — — The following table presents a summary of all nonaccruing loans restructured in TDRs for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 $ 882 $ 882 — $ — $ — 1 $ 882 $ 882 — $ — $ — Agriculture 9 5,802 5,802 — — — 9 5,802 5,802 6 8,374 8,374 Commercial non-real estate 2 3,699 3,699 — — — 2 3,699 3,699 — — — Residential real estate — — — — — — — — — — — — Consumer — — — — — — — — — — — — Total nonaccruing 12 $ 10,383 $ 10,383 — $ — $ — 12 $ 10,383 $ 10,383 6 $ 8,374 $ 8,374 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — — — — The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the three and nine months ended June 30, 2019 and 2018 , respectively. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 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 — — 2 130 — — 2 130 Commercial non-real estate — — 2 3,214 — — 2 3,214 Residential real estate — — — — — — — — Consumer — — — — — — — — Total — $ — 4 $ 3,344 — $ — 4 $ 3,344 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of allowances for loan and lease losses | The following tables present the Company’s allowance for loan and lease losses roll forward for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance April 1, 2019 $ 15,603 $ 33,725 $ 13,049 $ 4,326 $ 374 $ 926 $ 68,003 Charge-offs (45 ) (12,759 ) (4,608 ) (182 ) (18 ) (357 ) (17,969 ) Recoveries 169 — 79 48 15 124 435 Provision 1,606 15,159 8,567 451 150 267 26,200 (Improvement) impairment of ASC 310-30 loans (9 ) — 49 (163 ) — — (123 ) Ending balance June 30, 2019 $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Three Months Ended June 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance April 1, 2018 $ 18,914 $ 24,129 $ 15,730 $ 5,111 $ 279 $ 976 $ 65,139 Charge-offs (1,671 ) (1,978 ) (333 ) (167 ) (60 ) (399 ) (4,608 ) Recoveries 116 103 140 100 48 135 642 Provision 354 3,035 323 (529 ) 20 302 3,505 (Improvement) impairment of ASC 310-30 loans (28 ) — — 38 — — 10 Ending balance June 30, 2018 $ 17,685 $ 25,289 $ 15,860 $ 4,553 $ 287 $ 1,014 $ 64,688 Nine Months Ended June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2018 $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Charge-offs (990 ) (19,704 ) (6,079 ) (824 ) (351 ) (751 ) (28,699 ) Recoveries 428 274 306 335 143 254 1,740 Provision 1,537 27,434 9,250 82 472 431 39,206 (Improvement) impairment of ASC 310-30 loans (428 ) — 49 138 — — (241 ) Ending balance June 30, 2019 $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Nine Months Ended June 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Charge-offs (3,268 ) (4,959 ) (3,176 ) (442 ) (176 ) (1,491 ) (13,512 ) Recoveries 326 275 349 216 90 469 1,725 Provision 3,675 4,331 4,573 (539 ) 44 1,021 13,105 Impairment (improvement) of ASC 310-30 loans 11 (115 ) — (29 ) — — (133 ) Ending balance June 30, 2018 $ 17,685 $ 25,289 $ 15,860 $ 4,553 $ 287 $ 1,014 $ 64,688 The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of June 30, 2019 and September 30, 2018 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $816.9 million measured at fair value, loans held for sale of $6.2 million , and guaranteed loans of $152.6 million for June 30, 2019 and loans measured at fair value of $865.4 million , loans held for sale of $5.5 million , and guaranteed loans of $160.3 million for September 30, 2018 . As of June 30, 2019 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 4,058 $ 14,126 $ 5,731 $ 1,846 $ 224 $ — $ 25,985 Collectively evaluated for impairment 13,015 21,734 11,356 2,234 297 960 49,596 ASC 310-30 loans 251 265 49 400 — — 965 Total allowance $ 17,324 $ 36,125 $ 17,136 $ 4,480 $ 521 $ 960 $ 76,546 Financing Receivables Individually evaluated for impairment $ 47,746 $ 346,982 $ 29,879 $ 7,190 $ 313 $ — $ 432,110 Collectively evaluated for impairment 4,529,316 1,521,423 1,515,380 766,873 52,318 48,406 8,433,716 ASC 310-30 loans 22,116 2,828 236 32,375 467 — 58,022 Loans Outstanding $ 4,599,178 $ 1,871,233 $ 1,545,495 $ 806,438 $ 53,098 $ 48,406 $ 8,923,848 As of September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,668 $ 9,590 $ 4,508 $ 2,210 $ 61 $ — $ 20,037 Collectively evaluated for impairment 12,430 18,266 9,102 2,277 196 1,026 43,297 ASC 310-30 loans 679 265 — 262 — — 1,206 Total allowance $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Financing Receivables Individually evaluated for impairment $ 40,900 $ 137,225 $ 23,082 $ 6,686 $ 161 $ — $ 208,054 Collectively evaluated for impairment 4,053,712 1,823,947 1,364,511 780,047 48,711 46,487 8,117,415 ASC 310-30 loans 27,001 2,815 416 40,025 588 — 70,845 Loans Outstanding $ 4,121,613 $ 1,963,987 $ 1,388,009 $ 826,758 $ 49,460 $ 46,487 $ 8,396,314 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired with Deteriorated Credit Quality (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Balance at beginning of period $ 33,680 $ 37,841 $ 34,973 $ 44,131 Accretion (1,771 ) (3,993 ) (6,114 ) (11,038 ) Reclassification (to) from nonaccretable difference (3,142 ) 2,554 (92 ) 3,309 Balance at end of period $ 28,767 $ 36,402 $ 28,767 $ 36,402 |
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 $816.9 million at June 30, 2019 and $865.4 million at September 30, 2018 . June 30, 2019 September 30, 2018 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 $ 24,856 $ 25,699 $ 4,058 $ 25,136 $ 25,223 $ 3,668 Agriculture 109,245 125,164 14,126 60,053 76,874 9,590 Commercial non-real estate 19,933 21,375 5,731 14,177 17,241 4,508 Residential real estate 3,807 4,373 1,846 4,509 5,153 2,210 Consumer 313 318 224 160 165 61 Total impaired loans with an allowance recorded 158,154 176,929 25,985 104,035 124,656 20,037 With no allowance recorded: Commercial real estate 22,890 60,927 — 15,764 58,141 — Agriculture 237,737 257,431 — 77,172 80,355 — Commercial non-real estate 9,946 18,004 — 8,905 18,047 — Residential real estate 3,383 5,437 — 2,177 4,574 — Consumer — 108 — 1 118 — Total impaired loans with no allowance recorded 273,956 341,907 — 104,019 161,235 — Total impaired loans $ 432,110 $ 518,836 $ 25,985 $ 208,054 $ 285,891 $ 20,037 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended Nine Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 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 Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 40,199 $ 718 $ 61,257 $ 402 $ 39,399 $ 1,415 $ 57,818 $ 2,456 Agriculture 253,240 7,147 126,262 1,592 196,563 10,349 125,047 3,763 Commercial non-real estate 26,381 468 28,915 354 24,518 1,146 30,402 1,130 Residential real estate 6,911 123 6,780 54 6,831 305 7,273 335 Consumer 261 8 199 3 237 19 234 10 Total $ 326,992 $ 8,464 $ 223,413 $ 2,405 $ 267,548 $ 13,234 $ 220,774 $ 7,694 The following table provides purchased credit impaired loans at June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 91,697 $ 22,116 $ 21,865 $ 100,761 $ 27,001 $ 26,322 Agriculture 4,586 2,828 2,563 4,841 2,815 2,551 Commercial non-real estate 7,229 236 187 7,475 416 416 Residential real estate 37,750 32,375 31,975 46,646 40,025 39,763 Consumer 523 467 467 656 588 588 Total lending $ 141,785 $ 58,022 $ 57,057 $ 160,379 $ 70,845 $ 69,640 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. |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Summary of FDIC indemnification asset activity | The following table represents a summary of the activity related to the FDIC indemnification asset for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Balance at beginning of period $ 1,552 $ 3,678 $ 2,502 $ 5,704 Amortization (301 ) (494 ) (1,154 ) (2,244 ) Changes in expected reimbursements from FDIC for changes in expected credit losses 2 (23 ) (11 ) (56 ) Changes in reimbursable expenses — (340 ) (41 ) (1,002 ) Payments (reimbursements) of covered losses to (from) the FDIC 17 169 (26 ) 588 Balance at end of period $ 1,270 $ 2,990 $ 1,270 $ 2,990 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions, notional amounts and estimated fair values | The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by the Company as of June 30, 2019 and September 30, 2018 . June 30, 2019 September 30, 2018 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Financial institution counterparties $ 1,235,063 $ 787 $ (27,324 ) $ 1,082,630 $ 22,696 $ (2,231 ) Customer counterparties 458,927 34,871 — 217,066 1,533 (2,160 ) Interest rate caps Financial institution counterparties 100 5 — — — — Customer counterparties 100 — (5 ) — — — Risk participation agreements 54,855 — (199 ) — — — Mortgage loan commitments 49,050 44 — 22,195 — (28 ) Mortgage loan forward sale contracts 53,094 — (44 ) 27,408 28 — Total $ 1,851,189 $ 35,707 $ (27,572 ) $ 1,349,299 $ 24,257 $ (4,419 ) |
Summary of offsetting assets | The following tables provide information on the Company's netting adjustments as of June 30, 2019 and September 30, 2018 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of June 30, 2019 Total Derivative Assets $ 35,707 $ (1,895 ) $ 8,652 $ 42,464 Total Derivative Liabilities ¹ (27,572 ) 1,895 25,628 (49 ) 1 There was an additional $12.5 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at June 30, 2019 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ (4,419 ) 2,231 — (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. |
Summary of offsetting liabilities | The following tables provide information on the Company's netting adjustments as of June 30, 2019 and September 30, 2018 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of June 30, 2019 Total Derivative Assets $ 35,707 $ (1,895 ) $ 8,652 $ 42,464 Total Derivative Liabilities ¹ (27,572 ) 1,895 25,628 (49 ) 1 There was an additional $12.5 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at June 30, 2019 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ (4,419 ) 2,231 — (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. |
Schedule of derivative instruments, effect on other comprehensive income | The effect of derivatives on the consolidated statements of income for the three and nine months ended June 30, 2019 and 2018 was as follows. Amount of (Loss) Gain Recognized in Consolidated Statements of Income Three Months Ended June 30, Nine Months Ended June 30, Location of (Loss) Gain Recognized in Consolidated Statements of Income 2019 2018 2019 2018 (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps and other derivatives Net realized and unrealized (loss) gain on derivatives $ (20,904 ) $ 8,093 $ (50,252 ) $ 29,602 Mortgage loan commitments Net realized and unrealized (loss) gain on derivatives 23 4 44 8 Mortgage loan forward sale contracts Net realized and unrealized (loss) gain on derivatives (23 ) (4 ) (44 ) (8 ) |
The Fair Value Option for Cer_2
The Fair Value Option for Certain Loans (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value option | Changes in fair value for items for which the fair value option has been elected and the line items in which these changes are reported within the consolidated statements of income are as follows for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value Noninterest Income (Loss) Total Changes in Fair Value (dollars in thousands) Long-term loans $ 16,429 $ 16,429 $ (7,370 ) $ (7,370 ) $ 49,662 $ 49,662 $ (30,872 ) $ (30,872 ) |
Core Deposits and Other Intan_2
Core Deposits and Other Intangibles (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The following table presents a summary of intangible assets subject to amortization as of June 30, 2019 and September 30, 2018 . Core Deposit Intangible Brand Other Total (dollars in thousands) As of June 30, 2019 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (3,309 ) (6,251 ) (241 ) (9,801 ) Net intangible assets $ 4,030 $ 2,213 $ 297 $ 6,540 As of September 30, 2018 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (2,610 ) (5,828 ) (191 ) (8,629 ) Net intangible assets $ 4,729 $ 2,636 $ 347 $ 7,712 |
Schedule of estimated amortization expense of intangible assets | Estimated amortization expense of intangible assets in subsequent fiscal years is as follows. Fiscal year Amount (dollars in thousands) Remaining in 2019 $ 366 2020 1,430 2021 1,334 2022 1,249 2023 967 2024 and thereafter 1,194 Total $ 6,540 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of repurchases agreements | The following tables present the gross obligation by the class of collateral pledged and the remaining contractual maturity of the agreements at June 30, 2019 and September 30, 2018 . June 30, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total (dollars in thousands) Repurchase agreements Mortgage-backed securities $ 56,925 $ — $ — $ — $ 56,925 Total repurchase agreements $ 56,925 $ — $ — $ — $ 56,925 September 30, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total (dollars in thousands) Repurchase agreements Mortgage-backed securities $ 90,907 $ — $ — $ — $ 90,907 Total repurchase agreements $ 90,907 $ — $ — $ — $ 90,907 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Schedule of FHLB advances and other borrowings | FHLB advances and other borrowings consist of the following at June 30, 2019 and September 30, 2018 . June 30, September 30, 2019 2018 (dollars in thousands) Short-term borrowings: Notes payable to FHLB, interest rates from 2.38% to 2.42% $ 200,000 $ — FHLB fed funds advance, interest rate from 2.38% to 2.47% and matured in July 2019 80,000 100,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.36% to 3.66% and maturity dates from March 2021 to September 2024, collateralized by real estate loans, with various call dates at the option of the FHLB 325,000 175,000 Total $ 605,000 $ 275,000 |
Schedule of FHLB advances and other borrowings by maturity date | As of June 30, 2019 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) Remaining in 2019 $ 280,000 2020 — 2021 120,000 2022 60,000 2023 85,000 2024 and thereafter 60,000 Total $ 605,000 |
Subordinated Debentures and S_2
Subordinated Debentures and Subordinated Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of subordinated debentures and subordinated notes payable | Subordinated debentures and subordinated notes payable are summarized as follows. June 30, 2019 September 30, 2018 Amount Outstanding Common Shares Held in Other Assets Amount Outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to non-consolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR 30,928 928 30,928 928 SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR 2,062 62 2,062 62 HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR 5,155 155 5,155 155 HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR 7,217 217 7,217 217 HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR 5,310 310 5,310 310 HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR 2,155 155 2,155 155 Total junior subordinated debentures payable 75,920 $ 2,520 75,920 $ 2,520 Less: fair value adjustment ¹ (2,246 ) (2,317 ) Total junior subordinated debentures payable, net of fair value adjustment 73,674 73,603 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (80 ) (135 ) Total subordinated notes payable 34,920 34,865 Total subordinated debentures and subordinated notes payable $ 108,594 $ 108,468 1 Adjustment reflects the fair value adjustments related to the junior subordinated deferrable interest debentures assumed as part of the HF Financial acquisition. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted share and performance-based stock award activity | The following is a summary of the Plans’ restricted share and performance-based stock award activity as of June 30, 2019 and September 30, 2018 . The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. June 30, 2019 September 30, 2018 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 163,287 $ 37.86 180,337 $ 33.06 Granted 106,364 37.29 89,376 41.07 Vested (75,143 ) 38.65 (97,682 ) 32.11 Forfeited (1,759 ) 38.86 (8,744 ) 35.99 Canceled — — — — Restricted shares, end of period 192,749 $ 37.22 163,287 $ 37.86 Vested, but not issuable at end of period 50,770 $ 33.88 39,514 $ 32.90 Performance Shares Performance shares, beginning of fiscal year 175,196 $ 36.29 133,604 $ 33.39 Granted 54,317 36.47 53,682 29.52 Vested (59,803 ) 30.78 (7,017 ) 18.00 Forfeited (1,305 ) 39.09 (5,073 ) 37.75 Canceled — — — — Performance shares, end of period 168,405 $ 38.50 175,196 $ 36.29 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements of assets and liabilities | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2019 and September 30, 2018 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of June 30, 2019 U.S. Treasury securities $ 94,534 $ 94,534 $ — $ — Mortgage-backed securities 1,635,424 — 1,635,424 — States and political subdivision securities 68,451 — 64,331 4,120 Other 1,021 — 1,021 — Total securities available for sale $ 1,799,430 $ 94,534 $ 1,700,776 $ 4,120 Derivatives-assets $ 42,464 $ — $ 42,464 $ — Derivatives-liabilities 49 — 49 — Fair value loans 816,851 — 816,851 — Loan servicing rights 2,481 — — 2,481 As of September 30, 2018 U.S. Treasury securities $ 167,172 $ 167,172 $ — $ — Mortgage-backed securities 1,149,707 — 1,149,707 — States and political subdivision securities 67,775 — 66,805 970 Other 996 — 996 — Total securities available for sale $ 1,385,650 $ 167,172 $ 1,217,508 $ 970 Derivatives-assets $ 1,911 $ — $ 1,911 $ — Derivatives-liabilities 2,188 — 2,188 — Fair value loans 865,386 — 865,386 — Loan servicing rights 3,087 — — 3,087 |
Schedule of changes in Level 3 financial instruments | The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Other securities available for sale Balance, beginning of period $ 1,311 $ 965 $ 970 $ 1,069 Additions 3,000 — 3,350 — Principal paydown (191 ) (135 ) (200 ) (239 ) Balance, end of period $ 4,120 $ 830 $ 4,120 $ 830 Loan servicing rights Balance, beginning of period $ 2,674 $ 3,586 $ 3,087 $ 4,074 Realized and unrealized loss ¹ (193 ) (258 ) (606 ) (746 ) Balance, end of period $ 2,481 $ 3,328 $ 2,481 $ 3,328 1 Realized and unrealized loss related to loan servicing rights are reported as a component of mortgage banking income, net on the consolidated statements of income. |
Summary of mortgage loans held-for-sale, fair value measurement | The following tables present the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2019 and September 30, 2018 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of June 30, 2019 Other repossessed property $ 35,804 $ — $ — $ 35,804 Impaired loans 406,125 — — 406,125 Loans held for sale, at lower of cost or fair value 6,241 — 6,241 — Property held for sale 3,208 — — 3,208 As of September 30, 2018 Other repossessed property $ 22,225 $ — $ — $ 22,225 Impaired loans 188,017 — — 188,017 Loans held for sale, at lower of cost or fair value 5,456 — 5,456 — Property held for sale 1,104 — — 1,104 |
Summary of valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements | The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at June 30, 2019 were as follows. Fair Value of Assets / (Liabilities) at June 30, 2019 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 35,804 Appraisal value Property specific adjustment N/A N/A Impaired loans 406,125 Appraisal value Property specific adjustment N/A N/A Property held for sale 3,208 Appraisal value Property specific adjustment N/A N/A |
Schedule of fair values for balance sheet instruments | Fair values for on-balance sheet instruments as of June 30, 2019 and September 30, 2018 are as follows. June 30, 2019 September 30, 2018 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 225,356 $ 225,356 $ 298,696 $ 298,696 Loans, net, excluding fair valued loans, loans held for sale and impaired loans ¹ Level 3 8,657,754 8,691,223 8,357,065 8,231,829 Liabilities Time deposits Level 2 1,975,699 1,982,294 1,847,078 1,848,550 FHLB advances and other borrowings Level 2 605,000 615,482 275,000 275,797 Securities sold under repurchase agreements Level 2 56,925 56,925 90,907 90,907 Subordinated debentures and subordinated notes payable Level 2 108,594 101,069 108,468 107,841 1 Includes $14.3 million and $13.0 million of net deferred loan fees at June 30, 2019 and September 30, 2018, respectively, of which carrying value approximates fair value. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following information was used in the computation of basic and diluted earnings per share (EPS) for the three and nine months ended June 30, 2019 and 2018 . Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands, except per share data) Net income $ 26,783 $ 45,874 $ 117,080 $ 115,636 Weighted average common shares outstanding 56,995,007 58,948,944 57,321,561 58,930,963 Dilutive effect of stock based compensation 115,096 221,114 86,462 203,672 Weighted average common shares outstanding for diluted earnings per share calculation 57,110,103 59,170,058 57,408,023 59,134,635 Basic earnings per share $ 0.47 $ 0.78 $ 2.04 $ 1.96 Diluted earnings per share $ 0.47 $ 0.78 $ 2.04 $ 1.96 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Policies Nature of Operations ans Summary of Significant Policies - Disaggregation of Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income from contracts with customers within the scope of ASC Topic 606 | $ 13,172 | $ 16,419 | $ 41,128 | $ 50,163 |
Noninterest income within the scope of other GAAP Topics | (2,406) | 2,520 | 4,581 | 4,192 |
Total noninterest income | 10,766 | 18,939 | 45,709 | 54,355 |
Service charges and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income from contracts with customers within the scope of ASC Topic 606 | 10,321 | 12,655 | 32,219 | 37,879 |
Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income from contracts with customers within the scope of ASC Topic 606 | 2,234 | 2,242 | 6,592 | 6,761 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income from contracts with customers within the scope of ASC Topic 606 | $ 617 | $ 1,522 | $ 2,317 | $ 5,523 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Policies - Narrative (Details) - $ / shares | Jul. 25, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Dividends Payable [Line Items] | |||||
Common stock dividends declared (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.80 | $ 0.65 | |
Subsequent event | |||||
Dividends Payable [Line Items] | |||||
Common stock dividends declared (in dollars per share) | $ 0.30 |
New Accounting Standards - Narr
New Accounting Standards - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | $ 13,172 | $ 16,419 | $ 41,128 | $ 50,163 |
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | $ (1,500) | $ (5,200) |
Securities Available for Sale -
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 1,787,161 | $ 1,427,454 |
Gross Unrealized Gains | 19,395 | 39 |
Gross Unrealized Losses | (7,126) | (41,843) |
Estimated Fair Value | 1,799,430 | 1,385,650 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 93,936 | 168,394 |
Gross Unrealized Gains | 690 | 0 |
Gross Unrealized Losses | (92) | (1,222) |
Estimated Fair Value | 94,534 | 167,172 |
Mortgage-backed Securities | Government National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 485,426 | 442,458 |
Gross Unrealized Gains | 2,902 | 35 |
Gross Unrealized Losses | (4,999) | (16,335) |
Estimated Fair Value | 483,329 | 426,158 |
Mortgage-backed Securities | Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 466,761 | 297,380 |
Gross Unrealized Gains | 7,426 | 0 |
Gross Unrealized Losses | (934) | (7,055) |
Estimated Fair Value | 473,253 | 290,325 |
Mortgage-backed Securities | Federal National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 340,047 | 188,192 |
Gross Unrealized Gains | 3,868 | 0 |
Gross Unrealized Losses | (812) | (6,081) |
Estimated Fair Value | 343,103 | 182,111 |
Mortgage-backed Securities | Small Business Assistance Program | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 331,695 | 260,458 |
Gross Unrealized Gains | 4,101 | 0 |
Gross Unrealized Losses | (57) | (9,345) |
Estimated Fair Value | 335,739 | 251,113 |
States and political subdivision securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 68,290 | 69,566 |
Gross Unrealized Gains | 393 | 4 |
Gross Unrealized Losses | (232) | (1,795) |
Estimated Fair Value | 68,451 | 67,775 |
Other | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,006 | 1,006 |
Gross Unrealized Gains | 15 | 0 |
Gross Unrealized Losses | 0 | (10) |
Estimated Fair Value | $ 1,021 | $ 996 |
Securities Available for Sale_2
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Amortized Cost | ||
Due in one year or less | $ 56,440 | $ 111,842 |
Due after one year through five years | 92,477 | 114,920 |
Due after five years through ten years | 13,309 | 11,076 |
Due after ten years | 0 | 122 |
Amortized Cost | 162,226 | 237,960 |
Estimated Fair Value | ||
Due in one year or less | 56,341 | 111,221 |
Due after one year through five years | 93,181 | 113,069 |
Due after five years through ten years | 13,463 | 10,535 |
Due after ten years | 0 | 122 |
Estimated Fair Value | 162,985 | 234,947 |
Amortized Cost | 1,787,161 | 1,427,454 |
Estimated Fair Value | 1,799,430 | 1,385,650 |
Securities without contractual maturities, Amortized Cost | 1,006 | 1,006 |
Securities without contractual maturities, Fair Value | 1,021 | 996 |
Mortgage-backed securities | ||
Estimated Fair Value | ||
Amortized Cost | 1,623,929 | 1,188,488 |
Estimated Fair Value | $ 1,635,424 | $ 1,149,707 |
Securities Available for Sale_3
Securities Available for Sale - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds from sales of securities available for sale | $ 48,400,000 | $ 700,000 | $ 145,627,000 | $ 25,906,000 | |
Gross gains realized | 300,000 | 300,000 | |||
Gross loss realized | 500,000 | ||||
Other than temporary impairment losses recognized in earnings | 0 | $ 0 | 0 | $ 0 | |
Securities pledged as collateral | $ 950,300,000 | $ 950,300,000 | $ 787,400,000 | ||
Percentage of investment portfolio in continuous loss position (as a percent) | 34.00% | 34.00% | 98.00% | ||
Number of securities in an unrealized loss position (securities) | security | 292 | 292 | 390 |
Securities Available for Sale_4
Securities Available for Sale - Schedule of Gross Unrealized Losses on Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated Fair Value | $ 8,186 | $ 608,379 |
12 months or more, Estimated Fair Value | 594,655 | 751,669 |
Estimated Fair Value | 602,841 | 1,360,048 |
12 months or more, Unrealized Losses | (35) | (9,909) |
Less than 12 months, Unrealized Losses | (7,091) | (31,934) |
Unrealized Losses | (7,126) | (41,843) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated Fair Value | 0 | 167,172 |
12 months or more, Estimated Fair Value | 44,552 | 0 |
Estimated Fair Value | 44,552 | 167,172 |
12 months or more, Unrealized Losses | 0 | (1,222) |
Less than 12 months, Unrealized Losses | (92) | 0 |
Unrealized Losses | (92) | (1,222) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated Fair Value | 8,186 | 416,677 |
12 months or more, Estimated Fair Value | 514,300 | 709,387 |
Estimated Fair Value | 522,486 | 1,126,064 |
12 months or more, Unrealized Losses | (35) | (8,427) |
Less than 12 months, Unrealized Losses | (6,767) | (30,389) |
Unrealized Losses | (6,802) | (38,816) |
States and political subdivision securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated Fair Value | 0 | 23,534 |
12 months or more, Estimated Fair Value | 35,803 | 42,282 |
Estimated Fair Value | 35,803 | 65,816 |
12 months or more, Unrealized Losses | 0 | (250) |
Less than 12 months, Unrealized Losses | (232) | (1,545) |
Unrealized Losses | (232) | (1,795) |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated Fair Value | 0 | 996 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 0 | 996 |
12 months or more, Unrealized Losses | 0 | (10) |
Less than 12 months, Unrealized Losses | 0 | 0 |
Unrealized Losses | $ 0 | $ (10) |
Loans - Schedule of Loans Recei
Loans - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 9,915,072 | $ 9,445,750 |
Less: Unamortized discount on acquired loans | (15,549) | (18,283) |
Unearned net deferred fees and costs and loans in process | (12,552) | (11,543) |
Total | 9,886,971 | 9,415,924 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 5,199,742 | 4,629,330 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 2,049,395 | 2,182,688 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 1,747,501 | 1,699,987 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 816,751 | 837,569 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 53,277 | 49,689 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 48,406 | $ 46,487 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans covered by a FDIC loss share agreement | $ 34,102 | $ 34,102 | $ 42,627 | ||
Loan held for sale | 6,241 | 6,241 | 5,456 | ||
Loans and written loan commitments at fair value under the fair value option | 816,851 | 816,851 | 865,386 | ||
Unamortized discount on acquired loans | 14,300 | 14,300 | 13,000 | ||
Loans in process | (1,700) | (1,700) | (1,500) | ||
Loans guaranteed by U.S. Government Agencies | 8,923,848 | 8,923,848 | 8,396,314 | ||
Principal balances of residential real estate loans sold | 69,800 | $ 72,700 | 170,400 | $ 190,500 | |
Loans greater than 90 days past due and still accruing interest | 0 | 0 | 200 | ||
Valuation adjustments made to repossessed properties | 100 | 500 | 2,000 | 1,200 | |
Specific reserves included in the allowance for loan losses for TDRs | 9,900 | 9,200 | |||
Troubled debt restructuring, commitments to lend additional funds | 900 | 900 | 300 | ||
Transfers out of troubled debt restructuring status | 0 | $ 200 | 0 | $ 800 | |
Loans Guaranteed by US Government Authorities | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans guaranteed by U.S. Government Agencies | $ 161,100 | $ 161,100 | $ 168,600 |
Loans - Schedule of the Company
Loans - Schedule of the Company's Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | $ 115,866 | $ 140,566 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | 18,401 | 22,871 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | 84,943 | 107,198 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | 10,044 | 6,887 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | 2,393 | 3,549 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans, excluding loans covered under FDIC loss-sharing arrangements | $ 85 | $ 61 |
Loans - Schedule of the Composi
Loans - Schedule of the Composition of the Loan Portfolio by Internal Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | $ 9,048,572 | $ 8,519,454 |
Loans covered by a FDIC loss share agreement | 34,102 | 42,627 |
Total | 9,082,674 | 8,562,081 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 8,408,032 | 7,995,099 |
Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 210,369 | 316,915 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 426,549 | 205,031 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 3,622 | 2,409 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 4,679,169 | 4,202,741 |
Loans covered by a FDIC loss share agreement | 0 | 0 |
Total | 4,679,169 | 4,202,741 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 4,581,421 | 4,108,314 |
Commercial real estate | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 49,758 | 53,150 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 47,931 | 41,184 |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 59 | 93 |
Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Agriculture | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 1,892,738 | 1,986,890 |
Loans covered by a FDIC loss share agreement | 0 | 0 |
Total | 1,892,738 | 1,986,890 |
Agriculture | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 1,448,932 | 1,610,291 |
Agriculture | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 98,142 | 239,392 |
Agriculture | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 342,651 | 137,205 |
Agriculture | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 3,013 | 2 |
Agriculture | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Commercial non-real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 1,596,069 | 1,443,315 |
Loans covered by a FDIC loss share agreement | 0 | 0 |
Total | 1,596,069 | 1,443,315 |
Commercial non-real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 1,508,930 | 1,401,418 |
Commercial non-real estate | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 57,867 | 19,503 |
Commercial non-real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 28,760 | 20,117 |
Commercial non-real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 512 | 2,277 |
Commercial non-real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 779,092 | 790,561 |
Loans covered by a FDIC loss share agreement | 34,102 | 42,627 |
Total | 813,194 | 833,188 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 768,313 | 779,610 |
Residential real estate | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 3,846 | 4,548 |
Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 6,895 | 6,366 |
Residential real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 38 | 37 |
Residential real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 53,098 | 49,460 |
Loans covered by a FDIC loss share agreement | 0 | 0 |
Total | 53,098 | 49,460 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 52,030 | 48,979 |
Consumer | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 756 | 322 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 312 | 159 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Consumer | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 48,406 | 46,487 |
Loans covered by a FDIC loss share agreement | 0 | 0 |
Total | 48,406 | 46,487 |
Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 48,406 | 46,487 |
Other | Watchlist | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total financing receivables | $ 0 | $ 0 |
Loans - Schedule of Past Due Lo
Loans - Schedule of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | $ 9,048,572 | $ 8,519,454 |
Loans covered by FDIC loss sharing agreements | 34,102 | 42,627 |
Total | 9,082,674 | 8,562,081 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,679,169 | 4,202,741 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 4,679,169 | 4,202,741 |
Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,892,738 | 1,986,890 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,892,738 | 1,986,890 |
Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,596,069 | 1,443,315 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,596,069 | 1,443,315 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 779,092 | 790,561 |
Loans covered by FDIC loss sharing agreements | 34,102 | 42,627 |
Total | 813,194 | 833,188 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 53,098 | 49,460 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 53,098 | 49,460 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 48,406 | 46,487 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 48,406 | 46,487 |
Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 48,070 | 73,096 |
Loans covered by FDIC loss sharing agreements | 2,566 | 734 |
Total | 50,636 | 73,830 |
Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 8,005 | 10,606 |
Past Due | Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 32,523 | 54,864 |
Past Due | Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 5,444 | 4,635 |
Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,851 | 2,860 |
Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 247 | 131 |
Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Past Due | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 5,956 | 3,710 |
Loans covered by FDIC loss sharing agreements | 1,559 | 30 |
Total | 7,515 | 3,740 |
Past Due | 30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,977 | 920 |
Past Due | 30-59 Days Past Due | Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,827 | 1,243 |
Past Due | 30-59 Days Past Due | Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,179 | 551 |
Past Due | 30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 826 | 913 |
Past Due | 30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 147 | 83 |
Past Due | 30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Past Due | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 7,215 | 2,856 |
Loans covered by FDIC loss sharing agreements | 537 | 233 |
Total | 7,752 | 3,089 |
Past Due | 60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,782 | 551 |
Past Due | 60-89 Days Past Due | Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 3,574 | 2,042 |
Past Due | 60-89 Days Past Due | Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,533 | 16 |
Past Due | 60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 245 | 200 |
Past Due | 60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 81 | 47 |
Past Due | 60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 34,899 | 66,530 |
Loans covered by FDIC loss sharing agreements | 470 | 471 |
Total | 35,369 | 67,001 |
Past Due | 90 Days or Greater Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,246 | 9,135 |
Past Due | 90 Days or Greater Past Due | Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 27,122 | 51,579 |
Past Due | 90 Days or Greater Past Due | Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 2,732 | 4,068 |
Past Due | 90 Days or Greater Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 780 | 1,747 |
Past Due | 90 Days or Greater Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 19 | 1 |
Past Due | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 9,000,502 | 8,446,358 |
Loans covered by FDIC loss sharing agreements | 31,536 | 41,893 |
Total | 9,032,038 | 8,488,251 |
Current | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,671,164 | 4,192,135 |
Current | Agriculture | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,860,215 | 1,932,026 |
Current | Commercial non-real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,590,625 | 1,438,680 |
Current | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 777,241 | 787,701 |
Current | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 52,851 | 49,329 |
Current | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | $ 48,406 | $ 46,487 |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
With an allowance recorded: | |||||
Recorded Investment | $ 158,154 | $ 158,154 | $ 104,035 | ||
Unpaid Principal Balance | 176,929 | 176,929 | 124,656 | ||
Related Allowance | 25,985 | 25,985 | 20,037 | ||
With no allowance recorded: | |||||
Recorded Investment | 273,956 | 273,956 | 104,019 | ||
Unpaid Principal Balance | 341,907 | 341,907 | 161,235 | ||
Total Recorded Investment, Impaired Loans | 432,110 | 432,110 | 208,054 | ||
Total Unpaid Principal Balance, Impaired Loans | 518,836 | 518,836 | 285,891 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 326,992 | $ 223,413 | 267,548 | $ 220,774 | |
Interest Income Recognized While on Impaired Status | 8,464 | 2,405 | 13,234 | 7,694 | |
Commercial real estate | |||||
With an allowance recorded: | |||||
Recorded Investment | 24,856 | 24,856 | 25,136 | ||
Unpaid Principal Balance | 25,699 | 25,699 | 25,223 | ||
Related Allowance | 4,058 | 4,058 | 3,668 | ||
With no allowance recorded: | |||||
Recorded Investment | 22,890 | 22,890 | 15,764 | ||
Unpaid Principal Balance | 60,927 | 60,927 | 58,141 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 40,199 | 61,257 | 39,399 | 57,818 | |
Interest Income Recognized While on Impaired Status | 718 | 402 | 1,415 | 2,456 | |
Agriculture | |||||
With an allowance recorded: | |||||
Recorded Investment | 109,245 | 109,245 | 60,053 | ||
Unpaid Principal Balance | 125,164 | 125,164 | 76,874 | ||
Related Allowance | 14,126 | 14,126 | 9,590 | ||
With no allowance recorded: | |||||
Recorded Investment | 237,737 | 237,737 | 77,172 | ||
Unpaid Principal Balance | 257,431 | 257,431 | 80,355 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 253,240 | 126,262 | 196,563 | 125,047 | |
Interest Income Recognized While on Impaired Status | 7,147 | 1,592 | 10,349 | 3,763 | |
Commercial non-real estate | |||||
With an allowance recorded: | |||||
Recorded Investment | 19,933 | 19,933 | 14,177 | ||
Unpaid Principal Balance | 21,375 | 21,375 | 17,241 | ||
Related Allowance | 5,731 | 5,731 | 4,508 | ||
With no allowance recorded: | |||||
Recorded Investment | 9,946 | 9,946 | 8,905 | ||
Unpaid Principal Balance | 18,004 | 18,004 | 18,047 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 26,381 | 28,915 | 24,518 | 30,402 | |
Interest Income Recognized While on Impaired Status | 468 | 354 | 1,146 | 1,130 | |
Residential real estate | |||||
With an allowance recorded: | |||||
Recorded Investment | 3,807 | 3,807 | 4,509 | ||
Unpaid Principal Balance | 4,373 | 4,373 | 5,153 | ||
Related Allowance | 1,846 | 1,846 | 2,210 | ||
With no allowance recorded: | |||||
Recorded Investment | 3,383 | 3,383 | 2,177 | ||
Unpaid Principal Balance | 5,437 | 5,437 | 4,574 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 6,911 | 6,780 | 6,831 | 7,273 | |
Interest Income Recognized While on Impaired Status | 123 | 54 | 305 | 335 | |
Consumer | |||||
With an allowance recorded: | |||||
Recorded Investment | 313 | 313 | 160 | ||
Unpaid Principal Balance | 318 | 318 | 165 | ||
Related Allowance | 224 | 224 | 61 | ||
With no allowance recorded: | |||||
Recorded Investment | 0 | 0 | 1 | ||
Unpaid Principal Balance | 108 | 108 | $ 118 | ||
Average recorded investment and interest income recognized on impaired loans: | |||||
Average Recorded Investment | 261 | 199 | 237 | 234 | |
Interest Income Recognized While on Impaired Status | $ 8 | $ 3 | $ 19 | $ 10 |
Loans - Summary of Troubled Deb
Loans - Summary of Troubled Debt Restructurings on Accruing and Nonaccrual Financing Receivables (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Sep. 30, 2018USD ($) | |
Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 43,988 | $ 43,988 | $ 19,783 | ||
Financing receivable, modifications, number of contracts | contract | 18 | 3 | 19 | 6 | |
Financing receivable, modifications, pre-modification recorded investment | $ 27,003 | $ 4,680 | $ 27,092 | $ 10,826 | |
Financing receivable, modifications, post-modification recorded investment | $ 27,003 | $ 4,680 | $ 27,092 | $ 10,826 | |
Change in recorded investment due to principal paydown at time of modification, number of contracts | contract | 0 | 0 | 0 | 0 | |
Change in recorded investment due to principal paydown at time of modification, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to principal paydown at time of modification, post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to chargeoffs at time of modification, number of contracts | contract | 0 | 0 | 0 | 0 | |
Change in recorded investment due to chargeoffs at time of modification, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to chargeoffs at time of modification, post-modification recorded investment | 0 | $ 0 | 0 | $ 0 | |
Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 33,029 | $ 33,029 | 77,156 | ||
Financing receivable, modifications, number of contracts | contract | 12 | 0 | 12 | 6 | |
Financing receivable, modifications, pre-modification recorded investment | $ 10,383 | $ 0 | $ 10,383 | $ 8,374 | |
Financing receivable, modifications, post-modification recorded investment | $ 10,383 | $ 0 | $ 10,383 | $ 8,374 | |
Change in recorded investment due to principal paydown at time of modification, number of contracts | contract | 0 | 0 | 0 | 0 | |
Change in recorded investment due to principal paydown at time of modification, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to principal paydown at time of modification, post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to chargeoffs at time of modification, number of contracts | contract | 0 | 0 | 0 | 0 | |
Change in recorded investment due to chargeoffs at time of modification, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in recorded investment due to chargeoffs at time of modification, post-modification recorded investment | 0 | $ 0 | 0 | $ 0 | |
Commercial real estate | Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 17,205 | $ 17,205 | 2,649 | ||
Financing receivable, modifications, number of contracts | contract | 2 | 0 | 2 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 15,466 | $ 0 | $ 15,466 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 15,466 | $ 0 | 15,466 | $ 0 | |
Commercial real estate | Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 933 | $ 933 | 2,616 | ||
Financing receivable, modifications, number of contracts | contract | 1 | 0 | 1 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 882 | $ 0 | $ 882 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 882 | $ 0 | 882 | $ 0 | |
Agriculture | Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 23,853 | $ 23,853 | 13,248 | ||
Financing receivable, modifications, number of contracts | contract | 16 | 3 | 16 | 5 | |
Financing receivable, modifications, pre-modification recorded investment | $ 11,537 | $ 4,680 | $ 11,537 | $ 10,753 | |
Financing receivable, modifications, post-modification recorded investment | 11,537 | $ 4,680 | 11,537 | $ 10,753 | |
Agriculture | Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 27,551 | $ 27,551 | 73,741 | ||
Financing receivable, modifications, number of contracts | contract | 9 | 0 | 9 | 6 | |
Financing receivable, modifications, pre-modification recorded investment | $ 5,802 | $ 0 | $ 5,802 | $ 8,374 | |
Financing receivable, modifications, post-modification recorded investment | 5,802 | $ 0 | 5,802 | $ 8,374 | |
Commercial non-real estate | Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 2,504 | $ 2,504 | 3,420 | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 0 | $ 0 | 0 | $ 0 | |
Commercial non-real estate | Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 4,379 | $ 4,379 | 656 | ||
Financing receivable, modifications, number of contracts | contract | 2 | 0 | 2 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 3,699 | $ 0 | $ 3,699 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 3,699 | $ 0 | 3,699 | $ 0 | |
Residential real estate | Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 337 | $ 337 | 389 | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 0 | $ 0 | 0 | $ 0 | |
Residential real estate | Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 109 | $ 109 | 143 | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | 0 | $ 0 | 0 | $ 0 | |
Consumer | Accruing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 89 | $ 89 | 77 | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 | 1 | |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 89 | $ 73 | |
Financing receivable, modifications, post-modification recorded investment | 0 | $ 0 | 89 | $ 73 | |
Consumer | Nonaccrual | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded value of TDR balance | $ 57 | $ 57 | $ 0 | ||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | 0 | |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans - Subsequent Defaults on
Loans - Subsequent Defaults on Modified Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 4 | 0 | 4 |
Recorded Investment | $ | $ 0 | $ 3,344 | $ 0 | $ 3,344 |
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Agriculture | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 2 | 0 | 2 |
Recorded Investment | $ | $ 0 | $ 130 | $ 0 | $ 130 |
Commercial non-real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 2 | 0 | 2 |
Recorded Investment | $ | $ 0 | $ 3,214 | $ 0 | $ 3,214 |
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | $ 68,003 | $ 65,139 | $ 64,540 | $ 63,503 |
Charge-offs | (17,969) | (4,608) | (28,699) | (13,512) |
Recoveries | 435 | 642 | 1,740 | 1,725 |
Provision | 26,200 | 3,505 | 39,206 | 13,105 |
Allowance for loan losses, ending balance | 76,546 | 64,688 | 76,546 | 64,688 |
Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,200 | |||
(Improvement) impairment of ASC 310-30 loans | (123) | 10 | (241) | (133) |
Allowance for loan losses, ending balance | 1,000 | 1,000 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 15,603 | 18,914 | 16,777 | 16,941 |
Charge-offs | (45) | (1,671) | (990) | (3,268) |
Recoveries | 169 | 116 | 428 | 326 |
Provision | 1,606 | 354 | 1,537 | 3,675 |
Allowance for loan losses, ending balance | 17,324 | 17,685 | 17,324 | 17,685 |
Commercial real estate | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | (9) | (28) | (428) | 11 |
Agriculture | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 33,725 | 24,129 | 28,121 | 25,757 |
Charge-offs | (12,759) | (1,978) | (19,704) | (4,959) |
Recoveries | 0 | 103 | 274 | 275 |
Provision | 15,159 | 3,035 | 27,434 | 4,331 |
Allowance for loan losses, ending balance | 36,125 | 25,289 | 36,125 | 25,289 |
Agriculture | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | 0 | 0 | 0 | (115) |
Commercial non-real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 13,049 | 15,730 | 13,610 | 14,114 |
Charge-offs | (4,608) | (333) | (6,079) | (3,176) |
Recoveries | 79 | 140 | 306 | 349 |
Provision | 8,567 | 323 | 9,250 | 4,573 |
Allowance for loan losses, ending balance | 17,136 | 15,860 | 17,136 | 15,860 |
Commercial non-real estate | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | 49 | 0 | 49 | 0 |
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 4,326 | 5,111 | 4,749 | 5,347 |
Charge-offs | (182) | (167) | (824) | (442) |
Recoveries | 48 | 100 | 335 | 216 |
Provision | 451 | (529) | 82 | (539) |
Allowance for loan losses, ending balance | 4,480 | 4,553 | 4,480 | 4,553 |
Residential real estate | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | (163) | 38 | 138 | (29) |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 374 | 279 | 257 | 329 |
Charge-offs | (18) | (60) | (351) | (176) |
Recoveries | 15 | 48 | 143 | 90 |
Provision | 150 | 20 | 472 | 44 |
Allowance for loan losses, ending balance | 521 | 287 | 521 | 287 |
Consumer | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | 0 | 0 | 0 | 0 |
Other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 926 | 976 | 1,026 | 1,015 |
Charge-offs | (357) | (399) | (751) | (1,491) |
Recoveries | 124 | 135 | 254 | 469 |
Provision | 267 | 302 | 431 | 1,021 |
Allowance for loan losses, ending balance | 960 | 1,014 | 960 | 1,014 |
Other | Acquired receivables subject to ASC 310-30 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
(Improvement) impairment of ASC 310-30 loans | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan and Lease _4
Allowance for Loan and Lease Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and written loan commitments at fair value under the fair value option | $ 816,851 | $ 816,851 | $ 865,386 | |||||
Loan held for sale | 6,241 | 6,241 | 5,456 | |||||
Loans guaranteed by U.S. Government Agencies | 8,923,848 | 8,923,848 | 8,396,314 | |||||
Allowance for loan leases | 76,546 | $ 64,688 | 76,546 | $ 64,688 | $ 68,003 | 64,540 | $ 65,139 | $ 63,503 |
Unfunded loan commitment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Reserve for unfunded loan commitments | 500 | 500 | 500 | |||||
(Impairment) improvement of ASC 310-30 loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan leases | 1,000 | 1,000 | 1,200 | |||||
Net reversal of provision | (123) | $ 10 | (241) | $ (133) | ||||
Loans Guaranteed by US Government Authorities | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans guaranteed by U.S. Government Agencies | 161,100 | 161,100 | 168,600 | |||||
Loans Guaranteed by US Government Authorities | Loans and Leases with Allowance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans guaranteed by U.S. Government Agencies | $ 152,600 | $ 152,600 | $ 160,300 |
Allowance for Loan and Lease _5
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses by Type (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | $ 25,985 | $ 20,037 | ||||
Collectively evaluated for impairment | 49,596 | 43,297 | ||||
Total allowance | 76,546 | $ 68,003 | 64,540 | $ 64,688 | $ 65,139 | $ 63,503 |
Financing Receivables | ||||||
Individually evaluated for impairment | 432,110 | 208,054 | ||||
Collectively evaluated for impairment | 8,433,716 | 8,117,415 | ||||
Loans Outstanding | 8,923,848 | 8,396,314 | ||||
Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 965 | 1,206 | ||||
Total allowance | 1,000 | 1,200 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 58,022 | 70,845 | ||||
Commercial real estate | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 4,058 | 3,668 | ||||
Collectively evaluated for impairment | 13,015 | 12,430 | ||||
Total allowance | 17,324 | 15,603 | 16,777 | 17,685 | 18,914 | 16,941 |
Financing Receivables | ||||||
Individually evaluated for impairment | 47,746 | 40,900 | ||||
Collectively evaluated for impairment | 4,529,316 | 4,053,712 | ||||
Loans Outstanding | 4,599,178 | 4,121,613 | ||||
Commercial real estate | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 251 | 679 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 22,116 | 27,001 | ||||
Agriculture | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 14,126 | 9,590 | ||||
Collectively evaluated for impairment | 21,734 | 18,266 | ||||
Total allowance | 36,125 | 33,725 | 28,121 | 25,289 | 24,129 | 25,757 |
Financing Receivables | ||||||
Individually evaluated for impairment | 346,982 | 137,225 | ||||
Collectively evaluated for impairment | 1,521,423 | 1,823,947 | ||||
Loans Outstanding | 1,871,233 | 1,963,987 | ||||
Agriculture | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 265 | 265 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 2,828 | 2,815 | ||||
Commercial non-real estate | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 5,731 | 4,508 | ||||
Collectively evaluated for impairment | 11,356 | 9,102 | ||||
Total allowance | 17,136 | 13,049 | 13,610 | 15,860 | 15,730 | 14,114 |
Financing Receivables | ||||||
Individually evaluated for impairment | 29,879 | 23,082 | ||||
Collectively evaluated for impairment | 1,515,380 | 1,364,511 | ||||
Loans Outstanding | 1,545,495 | 1,388,009 | ||||
Commercial non-real estate | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 49 | 0 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 236 | 416 | ||||
Residential real estate | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 1,846 | 2,210 | ||||
Collectively evaluated for impairment | 2,234 | 2,277 | ||||
Total allowance | 4,480 | 4,326 | 4,749 | 4,553 | 5,111 | 5,347 |
Financing Receivables | ||||||
Individually evaluated for impairment | 7,190 | 6,686 | ||||
Collectively evaluated for impairment | 766,873 | 780,047 | ||||
Loans Outstanding | 806,438 | 826,758 | ||||
Residential real estate | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 400 | 262 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 32,375 | 40,025 | ||||
Consumer | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 224 | 61 | ||||
Collectively evaluated for impairment | 297 | 196 | ||||
Total allowance | 521 | 374 | 257 | 287 | 279 | 329 |
Financing Receivables | ||||||
Individually evaluated for impairment | 313 | 161 | ||||
Collectively evaluated for impairment | 52,318 | 48,711 | ||||
Loans Outstanding | 53,098 | 49,460 | ||||
Consumer | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 0 | 0 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | 467 | 588 | ||||
Other | ||||||
Allowance for loan and lease losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 960 | 1,026 | ||||
Total allowance | 960 | $ 926 | 1,026 | $ 1,014 | $ 976 | $ 1,015 |
Financing Receivables | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 48,406 | 46,487 | ||||
Loans Outstanding | 48,406 | 46,487 | ||||
Other | Acquired receivables subject to ASC 310-30 | ||||||
Allowance for loan and lease losses | ||||||
ASC 310-30 loans | 0 | 0 | ||||
Financing Receivables | ||||||
ASC 310-30 loans | $ 0 | $ 0 |
Accounting for Certain Loans _3
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 33,680 | $ 37,841 | $ 34,973 | $ 44,131 |
Accretion | (1,771) | (3,993) | (6,114) | (11,038) |
Reclassification (to) from nonaccretable difference | (3,142) | 2,554 | (92) | 3,309 |
Balance at end of period | $ 28,767 | $ 36,402 | $ 28,767 | $ 36,402 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | $ 141,785 | $ 160,379 |
Recorded Investment | 58,022 | 70,845 |
Carrying Value | 57,057 | 69,640 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 91,697 | 100,761 |
Recorded Investment | 22,116 | 27,001 |
Carrying Value | 21,865 | 26,322 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 4,586 | 4,841 |
Recorded Investment | 2,828 | 2,815 |
Carrying Value | 2,563 | 2,551 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 7,229 | 7,475 |
Recorded Investment | 236 | 416 |
Carrying Value | 187 | 416 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 37,750 | 46,646 |
Recorded Investment | 32,375 | 40,025 |
Carrying Value | 31,975 | 39,763 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 523 | 656 |
Recorded Investment | 467 | 588 |
Carrying Value | $ 467 | $ 588 |
FDIC Indemnification Asset - Su
FDIC Indemnification Asset - Summary of FDIC Indemnification Asset Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
FDIC Indemnification Asset [Roll Forward] | ||||
Balance at beginning of period | $ 1,552 | $ 3,678 | $ 2,502 | $ 5,704 |
Amortization | (301) | (494) | (1,154) | (2,244) |
Changes in expected reimbursements from FDIC for changes in expected credit losses | 2 | (23) | (11) | (56) |
Changes in reimbursable expenses | 0 | (340) | (41) | (1,002) |
Payments (reimbursements) of covered losses to (from) the FDIC | 17 | 169 | (26) | 588 |
Balance at end of period | $ 1,270 | $ 2,990 | $ 1,270 | $ 2,990 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Derivative Positions, Notional Amounts and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Derivative [Line Items] | ||
Gross Asset Fair Value | $ 35,707 | $ 24,257 |
Gross Liability Fair Value | (27,572) | (4,419) |
Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,851,189 | 1,349,299 |
Gross Asset Fair Value | 35,707 | 24,257 |
Gross Liability Fair Value | (27,572) | (4,419) |
Not Designated as Hedging Instruments | Interest rate swaps | Financial institution counterparties | ||
Derivative [Line Items] | ||
Notional Amount | 1,235,063 | 1,082,630 |
Gross Asset Fair Value | 787 | 22,696 |
Gross Liability Fair Value | (27,324) | (2,231) |
Not Designated as Hedging Instruments | Interest rate swaps | Customer counterparties | ||
Derivative [Line Items] | ||
Notional Amount | 458,927 | 217,066 |
Gross Asset Fair Value | 34,871 | 1,533 |
Gross Liability Fair Value | 0 | (2,160) |
Not Designated as Hedging Instruments | Interest rate caps | Financial institution counterparties | ||
Derivative [Line Items] | ||
Notional Amount | 100 | 0 |
Gross Asset Fair Value | 5 | 0 |
Gross Liability Fair Value | 0 | 0 |
Not Designated as Hedging Instruments | Interest rate caps | Customer counterparties | ||
Derivative [Line Items] | ||
Notional Amount | 100 | 0 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (5) | 0 |
Not Designated as Hedging Instruments | Risk participation agreements | ||
Derivative [Line Items] | ||
Notional Amount | 54,855 | 0 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (199) | 0 |
Not Designated as Hedging Instruments | Mortgage loan commitments | ||
Derivative [Line Items] | ||
Notional Amount | 49,050 | 22,195 |
Gross Asset Fair Value | 44 | 0 |
Gross Liability Fair Value | 0 | (28) |
Not Designated as Hedging Instruments | Mortgage loan forward sale contracts | ||
Derivative [Line Items] | ||
Notional Amount | 53,094 | 27,408 |
Gross Asset Fair Value | 0 | 28 |
Gross Liability Fair Value | $ (44) | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets, gross amount | $ 35,707 | $ 24,257 |
Derivative assets, fair value offset amount | (1,895) | (2,231) |
Derivative assets, cash collateral | 8,652 | 20,115 |
Derivative financial assets, net amount presented in Consolidated Balance Sheets | 42,464 | 1,911 |
Derivative liabilities, gross amount | (27,572) | (4,419) |
Derivative liabilities, fair value offset amount | 1,895 | 2,231 |
Derivative liabilities, cash collateral | 25,628 | 0 |
Derivative financial liabilities, net amount presented in Consolidated Balance Sheets | (49) | (2,188) |
Collateral held for initial margin | $ 12,500 | $ 6,200 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - Risk participation agreements - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Derivative [Line Items] | ||
Notional amount sold | $ 54.9 | $ 37.4 |
Exposure from RPAs | $ 0.2 | $ 0.4 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect on the Consolidated Statement of Comprehensive Income (Details) - Noninterest income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Amount of (Loss) Gain Recognized in Consolidated Statements of Income | $ (20,904) | $ 8,093 | $ (50,252) | $ 29,602 |
Mortgage loan commitments | ||||
Derivative [Line Items] | ||||
Amount of (Loss) Gain Recognized in Consolidated Statements of Income | 23 | 4 | 44 | 8 |
Mortgage loan forward sale contracts | ||||
Derivative [Line Items] | ||||
Amount of (Loss) Gain Recognized in Consolidated Statements of Income | $ (23) | $ (4) | $ (44) | $ (8) |
The Fair Value Option for Cer_3
The Fair Value Option for Certain Loans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Eligible item for the fair value option | $ 18.6 | $ 18.6 | $ (34.8) | ||
Loans greater than 90 days past due or in nonaccrual status | 16.4 | 16.4 | 30.9 | ||
Unpaid principal balance greater than 90 days past due or in nonaccrual status | 21.7 | 21.7 | 34.7 | ||
Long-term loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total unpaid principal balance of long-term loans | 798.3 | 798.3 | $ 900.2 | ||
Total change in fair value attributable to changes in specific credit risk | $ 4.8 | $ (0.1) | $ 5.6 | $ 0.2 |
The Fair Value Option for Cer_4
The Fair Value Option for Certain Loans - Summary of the Fair Value Option (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term loans | $ 16,429 | $ (7,370) | $ 49,662 | $ (30,872) |
Long-term loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term loans | 16,429 | (7,370) | 49,662 | (30,872) |
Long-term loans | Noninterest Income (Loss) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term loans | $ 16,429 | $ (7,370) | $ 49,662 | $ (30,872) |
Core Deposits and Other Intan_3
Core Deposits and Other Intangibles - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 16,341 | $ 16,341 |
Accumulated amortization | (9,801) | (8,629) |
Total | 6,540 | 7,712 |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,339 | 7,339 |
Accumulated amortization | (3,309) | (2,610) |
Total | 4,030 | 4,729 |
Brand Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,464 | 8,464 |
Accumulated amortization | (6,251) | (5,828) |
Total | 2,213 | 2,636 |
Other Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 538 | 538 |
Accumulated amortization | (241) | (191) |
Total | $ 297 | $ 347 |
Core Deposits and Other Intan_4
Core Deposits and Other Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of core deposits and other intangibles | $ 0.4 | $ 0.4 | $ 1.2 | $ 1.3 |
Core Deposits and Other Intan_5
Core Deposits and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining in 2019 | $ 366 | |
2020 | 1,430 | |
2021 | 1,334 | |
2022 | 1,249 | |
2023 | 967 | |
2024 and thereafter | 1,194 | |
Total | $ 6,540 | $ 7,712 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase | $ 96.3 | $ 109.9 |
Securities sold under agreements to repurchase, fair value of collateral | $ 95.6 | $ 104.6 |
Securities sold under agreements to repurchase, collateral, percentage of borrowed funds (as a percent) | 102.00% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Maturity Schedule of Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | $ 56,925 | $ 90,907 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 56,925 | 90,907 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 56,925 | 90,907 |
Overnight and Continuous | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 56,925 | 90,907 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Up to 30 Days | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
30-90 Days | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Greater than 90 Days | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | $ 0 | $ 0 |
FHLB Advances and Other Borro_3
FHLB Advances and Other Borrowings - Schedule of Advances, Related Party Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 605,000 | $ 275,000 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 325,000 | 175,000 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.36% | |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.66% | |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 200,000 | 0 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.38% | |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.42% | |
Federal Home Loan Bank fed funds advance | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 80,000 | $ 100,000 |
Federal Home Loan Bank fed funds advance | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.38% | |
Federal Home Loan Bank fed funds advance | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.47% |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 1,410 | $ 1,820 |
Loans pledged to the Federal Home Loan Bank | 3,970 | 3,950 |
Revolving Credit Facility | FRB Discount Window Loan | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 1,430 | 1,590 |
Loans pledged to the Federal Reserve Board Discount Window | 1,730 | 1,890 |
Letter of Credit | Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 170 | 150 |
Additional Letters of Credit | Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 14.5 | $ 16.4 |
FHLB Advances and Other Borro_5
FHLB Advances and Other Borrowings - Schedule of Due or Callable Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 108,594 | $ 108,468 |
FHLB Advances and Related Party Notes Payable | ||
Debt Instrument [Line Items] | ||
Remaining in 2019 | 280,000 | |
2020 | 0 | |
2021 | 120,000 | |
2022 | 60,000 | |
2023 | 85,000 | |
2024 and thereafter | 60,000 | |
Total | $ 605,000 |
Subordinated Debentures and S_3
Subordinated Debentures and Subordinated Notes Payable - Junior Subordinated Deferrable Interest Debentures (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 30, 2019USD ($)trust$ / sharesshares | Sep. 30, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Total subordinated debentures and subordinated notes payable | $ 108,594 | $ 108,468 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Total subordinated debentures and subordinated notes payable | 73,674 | 73,603 |
Common shares held in other assets | $ 2,520 | $ 2,520 |
Trust Preferred Securities Subject to Mandatory Redemption | ||
Debt Instrument [Line Items] | ||
Number of trusts | trust | 7 | |
Number of shares caused to be issued (in shares) | shares | 73,400 | |
Par value per shares issued (in dollars per share) | $ / shares | $ 1,000 | |
Trust Preferred Securities Subject to Mandatory Redemption | London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.48% | |
Trust Preferred Securities Subject to Mandatory Redemption | London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.35% |
Subordinated Debentures and S_4
Subordinated Debentures and Subordinated Notes Payable - Subordinated Notes Payable (Details) - Subordinated Debt - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 35,000,000 | ||
Stated interest rate (as a percent) | 4.875% | ||
Redemption price, percentage of principal (as a percent) | 100.00% | ||
Unamortized debt issuance costs | $ 80,000 | $ 135,000 | |
London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.15% |
Subordinated Debentures and S_5
Subordinated Debentures and Subordinated Notes Payable - Summary of Subordinated Debentures and Notes Payable (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2015 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Total | $ 108,594 | $ 108,468 | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | 75,920 | 75,920 | |
Total junior subordinated debentures payable, common shares held in other assets | 2,520 | 2,520 | |
Less: fair value adjustment | (2,246) | (2,317) | |
Total | 73,674 | 73,603 | |
Junior Subordinated Debt | GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | 23,093 | 23,093 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 693 | 693 | |
Junior Subordinated Debt | GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.85% | ||
Junior Subordinated Debt | GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 30,928 | 30,928 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 928 | 928 | |
Junior Subordinated Debt | GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.48% | ||
Junior Subordinated Debt | SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 2,062 | 2,062 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 62 | 62 | |
Junior Subordinated Debt | SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.85% | ||
Junior Subordinated Debt | HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 5,155 | 5,155 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 155 | 155 | |
Junior Subordinated Debt | HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.35% | ||
Junior Subordinated Debt | HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 7,217 | 7,217 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 217 | 217 | |
Junior Subordinated Debt | HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.10% | ||
Junior Subordinated Debt | HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 5,310 | 5,310 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 310 | 310 | |
Junior Subordinated Debt | HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.83% | ||
Junior Subordinated Debt | HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 2,155 | 2,155 | |
Total junior subordinated debentures payable, common shares held in other assets | $ 155 | 155 | |
Junior Subordinated Debt | HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.65% | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Total | $ 34,920 | 34,865 | |
Less: unamortized debt issuance costs | (80) | (135) | |
Stated interest rate (as a percent) | 4.875% | ||
Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.15% | ||
Subordinated Debt | Fixed to floating rate, 4.875% per annum | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures payable, amount outstanding | $ 35,000 | $ 35,000 | |
Stated interest rate (as a percent) | 4.875% |
Profit Sharing Plan - Profit Sh
Profit Sharing Plan - Profit Sharing Plan (Details) - Multiple employer 401(k) profit sharing plan $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)year | Jun. 30, 2018USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plan, requisite service period | 1 year | |||
Defined contribution plan, minimum age requirement (years of age) | year | 21 | |||
Contributions by the Company | $ | $ 1.5 | $ 1.5 | $ 4.4 | $ 4.5 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 1.4 | $ 1.4 | $ 4.5 | $ 4.3 | |
Tax benefit from compensation expense | 0.4 | $ 0.4 | 1.1 | $ 1.4 | |
Share-based compensation, compensation cost not yet recognized | $ 6.2 | $ 6.2 | |||
Share-based compensation, compensation cost not yet recognized, recognition period | 2 years 4 months 24 days | ||||
Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of vested stock awards | $ 2 | $ 1.9 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Share and Performance-Based Stock Award Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Sep. 30, 2018 | |
Restricted shares | ||
Common Shares | ||
Shares, beginning of fiscal year (in shares) | 163,287 | 180,337 |
Granted (in shares) | 106,364 | 89,376 |
Vested (in shares) | (75,143) | (97,682) |
Forfeited (in shares) | (1,759) | (8,744) |
Canceled (in shares) | 0 | 0 |
Shares, end of period (in shares) | 192,749 | 163,287 |
Vested, but not issuable at end of period (in shares) | 50,770 | 39,514 |
Weighted-Average Grant Date Fair Value | ||
Shares, beginning of fiscal year (in dollars per share) | $ 37.86 | $ 33.06 |
Granted (in dollars per share) | 37.29 | 41.07 |
Vested (in dollars per share) | 38.65 | 32.11 |
Forfeited (in dollars per share) | 38.86 | 35.99 |
Canceled (in dollars per share) | 0 | 0 |
Shares, end of period (in dollars per share) | 37.22 | 37.86 |
Vested, but not issuable at end of period (in dollars per share) | $ 33.88 | $ 32.90 |
Performance shares | ||
Common Shares | ||
Shares, beginning of fiscal year (in shares) | 175,196 | 133,604 |
Granted (in shares) | 54,317 | 53,682 |
Vested (in shares) | (59,803) | (7,017) |
Forfeited (in shares) | (1,305) | (5,073) |
Canceled (in shares) | 0 | 0 |
Shares, end of period (in shares) | 168,405 | 175,196 |
Vested, but not issuable at end of period (in shares) | 5,612 | 5,612 |
Weighted-Average Grant Date Fair Value | ||
Shares, beginning of fiscal year (in dollars per share) | $ 36.29 | $ 33.39 |
Granted (in dollars per share) | 36.47 | 29.52 |
Vested (in dollars per share) | 30.78 | 18 |
Forfeited (in dollars per share) | 39.09 | 37.75 |
Canceled (in dollars per share) | 0 | 0 |
Shares, end of period (in dollars per share) | 38.50 | 36.29 |
Vested, but not issuable at end of period (in dollars per share) | $ 18 | $ 18 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,799,430 | $ 1,385,650 |
Fair value loans | 816,851 | 865,386 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 94,534 | 167,172 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,635,424 | 1,149,707 |
States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 68,451 | 67,775 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,799,430 | 1,385,650 |
Derivatives-assets | 42,464 | 1,911 |
Derivatives-liabilities | 49 | 2,188 |
Fair value loans | 816,851 | 865,386 |
Loan servicing rights | 2,481 | 3,087 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 94,534 | 167,172 |
Fair value, measurements, recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,635,424 | 1,149,707 |
Fair value, measurements, recurring | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 68,451 | 67,775 |
Fair value, measurements, recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,021 | 996 |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 94,534 | 167,172 |
Derivatives-assets | 0 | 0 |
Derivatives-liabilities | 0 | 0 |
Fair value loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Fair value, measurements, recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 94,534 | 167,172 |
Fair value, measurements, recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 1 | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,700,776 | 1,217,508 |
Derivatives-assets | 42,464 | 1,911 |
Derivatives-liabilities | 49 | 2,188 |
Fair value loans | 816,851 | 865,386 |
Loan servicing rights | 0 | 0 |
Fair value, measurements, recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,635,424 | 1,149,707 |
Fair value, measurements, recurring | Level 2 | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 64,331 | 66,805 |
Fair value, measurements, recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,021 | 996 |
Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,120 | 970 |
Derivatives-assets | 0 | 0 |
Derivatives-liabilities | 0 | 0 |
Fair value loans | 0 | 0 |
Loan servicing rights | 2,481 | 3,087 |
Fair value, measurements, recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 3 | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,120 | 970 |
Fair value, measurements, recurring | Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 1,311 | $ 965 | $ 970 | $ 1,069 |
Additions | 3,000 | 0 | 3,350 | 0 |
Principal paydown | (191) | (135) | (200) | (239) |
Balance, end of period | 4,120 | 830 | 4,120 | 830 |
Loan servicing rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 2,674 | 3,586 | 3,087 | 4,074 |
Realized and unrealized (loss) | (193) | (258) | (606) | (746) |
Balance, end of period | $ 2,481 | $ 3,328 | $ 2,481 | $ 3,328 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Mortgage Loans Held-For-Sale, Fair Value Measurement (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | $ 35,804 | $ 22,225 |
Impaired loans | 406,125 | 188,017 |
Loans held for sale, at lower of cost or fair value | 6,241 | 5,456 |
Property held for sale | 3,208 | 1,104 |
Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Property held for sale | 0 | 0 |
Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 6,241 | 5,456 |
Property held for sale | 0 | 0 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 35,804 | 22,225 |
Impaired loans | 406,125 | 188,017 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Property held for sale | $ 3,208 | $ 1,104 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Valuation Techniques and Significant Unobservable Inputs Used to Measure Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Property held for sale | $ 3,208 | $ 1,104 |
Fair value, measurements, nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 35,804 | 22,225 |
Impaired loans | 406,125 | 188,017 |
Fair value, measurements, nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 35,804 | 22,225 |
Impaired loans | 406,125 | $ 188,017 |
Property held for sale | $ 3,208 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Fair Values for Balance Sheet Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Liabilities | ||
Unamortized discount on acquired loans | $ 14,300 | $ 13,000 |
Level 1 | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 225,356 | 298,696 |
Level 1 | Fair Value | ||
Assets | ||
Cash and cash equivalents | 225,356 | 298,696 |
Level 3 | Carrying Amount | ||
Assets | ||
Loans, net, excluding fair valued loans, loans held for sale and impaired loans | 8,657,754 | 8,357,065 |
Level 3 | Fair Value | ||
Assets | ||
Loans, net, excluding fair valued loans, loans held for sale and impaired loans | 8,691,223 | 8,231,829 |
Level 2 | Carrying Amount | ||
Liabilities | ||
Time deposits | 1,975,699 | 1,847,078 |
FHLB advances and other borrowings | 605,000 | 275,000 |
Securities sold under repurchase agreements | 56,925 | 90,907 |
Subordinated debentures and subordinated notes payable | 108,594 | 108,468 |
Level 2 | Fair Value | ||
Liabilities | ||
Time deposits | 1,982,294 | 1,848,550 |
FHLB advances and other borrowings | 615,482 | 275,797 |
Securities sold under repurchase agreements | 56,925 | 90,907 |
Subordinated debentures and subordinated notes payable | $ 101,069 | $ 107,841 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 26,783 | $ 45,874 | $ 117,080 | $ 115,636 |
Weighted average common shares outstanding (in shares) | 56,995,007 | 58,948,944 | 57,321,561 | 58,930,963 |
Dilutive effect of stock based compensation (in shares) | 115,096 | 221,114 | 86,462 | 203,672 |
Weighted average common shares outstanding for diluted earnings per share calculation (in shares) | 57,110,103 | 59,170,058 | 57,408,023 | 59,134,635 |
Basic earnings per share (in dollars per share) | $ 0.47 | $ 0.78 | $ 2.04 | $ 1.96 |
Diluted earnings per share (in dollars per share) | $ 0.47 | $ 0.78 | $ 2.04 | $ 1.96 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share (in shares) | 33,864 | 0 |