Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 22, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --09-30 | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36688 | ||
Entity Registrant Name | Great Western Bancorp, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1308512 | ||
Entity Address, Address Line One | 225 South Main Avenue | ||
Entity Address, City or Town | Sioux Falls, | ||
Entity Address, State or Province | SD | ||
Entity Address, Postal Zip Code | 57104 | ||
City Area Code | 605 | ||
Local Phone Number | 334-2548 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | GWB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,669,324,397 | ||
Entity Common Stock, Shares Outstanding | 55,118,468 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001613665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | |
Assets [Abstract] | |||
Cash and due from banks | $ 141,563 | $ 150,085 | |
Interest-bearing bank deposits | 1,410,697 | 282,802 | |
Cash and cash equivalents | 1,552,260 | 432,887 | |
Securities purchased under agreements to resell | 104,339 | 0 | |
Securities available for sale | 2,343,202 | 1,774,626 | |
Securities held to maturity | 367,751 | 0 | |
Loans, net of unearned discounts and deferred fees, including $524,533 and $655,185 of loans at fair value under the fair value option at September 30, 2021 and 2020, respectively, and $2,904 and $12,371 of loans held for sale at September 30, 2021 and 2020, respectively | 8,185,053 | 10,076,142 | |
Allowance for credit losses | [1] | (246,038) | (149,887) |
Net loans | 7,939,015 | 9,926,255 | |
Premises and equipment, including $600 of property held for sale at both September 30, 2021 and 2020 | 117,978 | 119,054 | |
Accrued interest receivable | 37,122 | 54,658 | |
Other repossessed property | 4,479 | 20,034 | |
Bank owned life insurance | 184,845 | 31,658 | |
Net deferred tax assets | 88,861 | 47,709 | |
Other assets | 171,616 | 197,558 | |
Total assets | 12,911,468 | 12,604,439 | |
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |||
Noninterest-bearing | 2,608,579 | 2,586,743 | |
Interest-bearing | 8,701,887 | 8,422,036 | |
Total deposits | 11,310,466 | 11,008,779 | |
Securities sold under agreements to repurchase | 91,289 | 65,506 | |
FHLB advances and other borrowings | 120,000 | 195,000 | |
Subordinated debentures and subordinated notes payable | 108,967 | 108,832 | |
Accrued expenses and other liabilities | 79,267 | 63,389 | |
Total liabilities | 11,709,989 | 11,441,506 | |
Stockholders’ equity | |||
Common stock, $0.01 par value, authorized 500,000,000 shares; 55,116,503 shares issued and outstanding at September 30, 2021 and 55,014,189 shares issued and outstanding at September 30, 2020 | 551 | 550 | |
Additional paid-in capital | 1,182,732 | 1,183,647 | |
Retained earnings | 13,170 | (57,169) | |
Accumulated other comprehensive income | 5,026 | 35,905 | |
Total stockholders' equity | 1,201,479 | 1,162,933 | |
Total liabilities and stockholders' equity | $ 12,911,468 | $ 12,604,439 | |
[1] | Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Assets [Abstract] | ||
Loans and written loan commitments at fair value under the fair value option | $ 524,533 | $ 655,185 |
Loan held for sale | 2,904 | 12,371 |
Property held for sale | $ 600 | $ 600 |
Liabilities and 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) | 55,116,503 | 55,014,189 |
Common stock, shares outstanding (in shares) | 55,116,503 | 55,014,189 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Interest income | ||||
Loans | $ 388,977 | $ 449,536 | $ 498,935 | |
Investment securities | 33,995 | 42,653 | 41,510 | |
Federal funds sold and other | 2,172 | 1,383 | 2,472 | |
Total interest income | 425,144 | 493,572 | 542,917 | |
Interest expense | ||||
Deposits | 16,754 | 58,603 | 106,718 | |
FHLB advances and other borrowings | 3,481 | 11,028 | 9,951 | |
Subordinated debentures and subordinated notes payable | 3,182 | 4,516 | 5,540 | |
Total interest expense | 23,417 | 74,147 | 122,209 | |
Net interest income | 401,727 | 419,425 | 420,708 | |
(Reversal of) provision for credit losses ¹ | [1],[2] | (34,734) | 118,392 | 40,947 |
Net interest income after (reversal of) provision for credit losses | 436,461 | 301,033 | 379,761 | |
Noninterest income | ||||
Service charges and other fees | 37,129 | 37,741 | 43,893 | |
Wealth management fees | 13,347 | 11,772 | 8,914 | |
Mortgage banking income, net | 11,337 | 8,959 | 4,848 | |
Net gain (loss) on sale of securities | 249 | 7,890 | (178) | |
Derivative interest expense | (12,727) | (8,722) | 619 | |
Change in fair value of FVO loans and related derivatives | 3,468 | (62,306) | (7,666) | |
Other derivative income | 6,500 | 60 | 5,015 | |
Other | 7,261 | 4,623 | 5,287 | |
Total noninterest income | 66,564 | 17 | 60,732 | |
Noninterest expense | ||||
Salaries and employee benefits | 154,288 | 149,441 | 136,305 | |
Data processing and communication | 27,526 | 24,455 | 24,077 | |
Occupancy and equipment | 21,270 | 21,273 | 20,784 | |
Professional fees | 21,332 | 21,961 | 14,579 | |
Advertising | 2,756 | 3,396 | 4,493 | |
Net (gain) loss on repossessed property and other related expenses | (1,782) | 12,858 | 4,367 | |
Goodwill and intangible assets impairment | 0 | 742,352 | 0 | |
Other ¹ | 15,366 | 31,632 | 20,293 | |
Total noninterest expense | 240,756 | 1,007,368 | 224,898 | |
Income (loss) before income taxes | 262,269 | (706,318) | 215,595 | |
Provision for (benefit from) income taxes | 59,011 | (25,510) | 48,230 | |
Net income | $ 203,258 | $ (680,808) | $ 167,365 | |
Basic earnings per common share | ||||
Weighted average shares outstanding, basic (in shares) | 55,183,940 | 55,612,251 | 57,154,865 | |
Basic earnings per share (in dollars per share) | $ 3.68 | $ (12.24) | $ 2.93 | |
Diluted earnings per common share | ||||
Weighted average shares outstanding, diluted (in shares) | 55,443,909 | 55,612,251 | 57,257,061 | |
Diluted earnings per share (in dollars per share) | $ 3.67 | $ (12.24) | $ 2.92 | |
Dividends per share | ||||
Dividends paid | $ 4,408 | $ 42,456 | $ 62,904 | |
Dividends per share (in dollars per share) | $ 0.08 | $ 0.76 | $ 1.10 | |
[1] | For the fiscal year ended September 30, 2021, this line includes a $1.1 million reversal of provision for unfunded commitments reserve. | |||
[2] | For the fiscal year ended September 30, 2021, this line includes a $1.1 million reversal of provision for unfunded commitments reserve. For the fiscal years ended September 30, 2020 and 2019, provision for unfunded commitments reserve of $1.9 million and $0.0 million, respectively, was recorded in other noninterest expense in the consolidated income statement. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
(Reversal of) provision for unfunded commitments | $ (1.1) | $ 1.9 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 203,258 | $ (680,808) | $ 167,365 |
Securities available for sale: | |||
Net unrealized holding (loss) gain arising during the period | (40,732) | 37,630 | 59,550 |
Reclassification adjustment for net (gain) loss realized in net income | (249) | (7,890) | 178 |
Income tax benefit (expense) | 10,102 | (7,332) | (14,722) |
Other comprehensive (loss) income, net of tax | (30,879) | 22,408 | 45,006 |
Comprehensive income (loss) | $ 172,379 | $ (658,400) | $ 212,371 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect adjustment related to ASU adoption | Comprehensive Income | Common Stock Par Value | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative effect adjustment related to ASU adoption | Accumulated Other Comprehensive (Loss) Income | ||
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 (loss) | 167,365 | $ 167,365 | 167,365 | |||||||
Other comprehensive income, net of tax | 45,006 | 45,006 | 45,006 | |||||||
Comprehensive income (loss) | $ 212,371 | 212,371 | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 [Member] | |||||||||
Stock-based compensation, net of tax | $ 4,582 | 1 | 4,581 | |||||||
Repurchase of common stock | (94,351) | (27) | (94,324) | |||||||
Cash dividends: | ||||||||||
Cash dividends, common stock | (62,904) | (62,904) | ||||||||
Ending balance at Sep. 30, 2019 | 1,900,249 | $ (182) | [1] | 563 | 1,228,714 | 657,475 | $ (182) | [1] | 13,497 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) | (680,808) | (680,808) | (680,808) | |||||||
Other comprehensive income, net of tax | 22,408 | 22,408 | 22,408 | |||||||
Comprehensive income (loss) | $ (658,400) | (658,400) | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | |||||||||
Stock-based compensation, net of tax | $ 3,705 | 1 | 3,704 | |||||||
Repurchase of common stock | (39,983) | (14) | (39,969) | |||||||
Cash dividends: | ||||||||||
Cash dividends, common stock | (42,456) | (8,802) | (33,654) | |||||||
Ending balance at Sep. 30, 2020 | 1,162,933 | $ (132,919) | [2] | 550 | 1,183,647 | (57,169) | $ (132,919) | [2] | 35,905 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) | 203,258 | 203,258 | 203,258 | |||||||
Other comprehensive income, net of tax | (30,879) | (30,879) | (30,879) | |||||||
Comprehensive income (loss) | 172,379 | $ 172,379 | ||||||||
Stock-based compensation, net of tax | 3,494 | 1 | 3,493 | |||||||
Cash dividends: | ||||||||||
Cash dividends, common stock | (4,408) | (4,408) | ||||||||
Ending balance at Sep. 30, 2021 | $ 1,201,479 | $ 551 | $ 1,182,732 | $ 13,170 | $ 5,026 | |||||
[1] | Cumulative effect adjustment relates to the adoption of ASU 2016-02, Leases (Topic 872) .and related ASUs on October 1, 2019. | |||||||||
[2] | Cumulative effect adjustment related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020. For additional information, see Note 2. " New Accounting Pronouncements ". |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid on common stock (in dollars per share) | $ 0.08 | $ 0.76 | $ 1.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | ||||
Net income (loss) | $ 203,258 | $ (680,808) | $ 167,365 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation, amortization and deferred fee accretion, net | (15,945) | 26,354 | 13,655 | |
Amortization of FDIC indemnification asset | 0 | 1,012 | 1,386 | |
Net (gain) loss on sale of securities and other assets | (2,121) | 2,851 | 2,825 | |
Net gain on sale of loans | (11,978) | (9,910) | (5,680) | |
(Reversal of) provision for credit losses ¹ | [1],[2] | (34,734) | 118,392 | 40,947 |
Goodwill and intangible assets impairment | 0 | 742,352 | 0 | |
Provision for (reversal of) loan servicing rights loss | 4 | 9 | (4) | |
Stock-based compensation | 3,494 | 3,705 | 4,582 | |
Originations of residential real estate loans held for sale | (393,305) | (501,947) | (289,973) | |
Proceeds from sales of residential real estate loans held for sale | 414,750 | 506,837 | 293,758 | |
Proceeds from sale of other assets | 348 | 0 | 0 | |
Net deferred income taxes | 11,822 | (47,754) | 8,124 | |
Changes in: | ||||
Accrued interest receivable | 17,536 | 4,040 | 249 | |
Other assets | 20,684 | (77,271) | (48,524) | |
Accrued expenses and other liabilities | 17,638 | (5,398) | 2,949 | |
Net cash provided by operating activities | 231,451 | 82,464 | 191,659 | |
Investing activities | ||||
Net change in securities purchased under agreements to resell | (104,339) | 0 | 0 | |
Purchase of debt securities available for sale | (1,360,930) | (677,873) | (774,707) | |
Proceeds from sales of debt securities available for sale | 0 | 151,899 | 175,007 | |
Proceeds from maturities of debt securities available for sale | 737,528 | 564,123 | 257,201 | |
Purchase of debt securities held to maturity | (373,147) | 0 | 0 | |
Proceeds from sales of debt securities held to maturity | 0 | 0 | 0 | |
Proceeds from maturities of debt securities held to maturity | 8,943 | 0 | 0 | |
Net decrease (increase) in loans | 1,865,834 | (426,156) | (348,479) | |
Payment of covered losses from FDIC indemnification claims | 0 | (47) | (14) | |
Purchase of premises and equipment | (6,127) | (6,108) | (15,643) | |
Proceeds from sale of premises and equipment | 572 | 44 | 606 | |
Proceeds from sale of repossessed property | 21,801 | 20,392 | 9,981 | |
Purchase of bank owned life insurance | (150,000) | 0 | 0 | |
Purchase of FHLB stock | (50) | (113,437) | (89,948) | |
Proceeds from redemption of FHLB stock | 367 | 122,483 | 87,528 | |
Net cash paid in business acquisition | 0 | (4,711) | 0 | |
Net cash provided by (used in) investing activities | 640,452 | (369,391) | (698,468) | |
Financing activities | ||||
Net increase in deposits | 301,709 | 708,563 | 567,004 | |
Net increase (decrease) in securities sold under agreements to repurchase and other short-term borrowings | 25,783 | (3,486) | (21,915) | |
Proceeds from FHLB advances and other long-term borrowings | 0 | 755,000 | 810,000 | |
Repayments on FHLB advances and other long-term borrowings | (75,000) | (900,000) | (745,000) | |
Common stock repurchased | 0 | (39,983) | (94,351) | |
Taxes paid related to net share settlement of equity awards | (614) | (1,298) | (1,247) | |
Dividends paid | (4,408) | (42,456) | (62,904) | |
Net cash provided by financing activities | 247,470 | 476,340 | 451,587 | |
Net increase (decrease) in cash and cash equivalents | 1,119,373 | 189,413 | (55,222) | |
Cash and cash equivalents, beginning of period | 432,887 | 243,474 | 298,696 | |
Cash and cash equivalents, end of period | 1,552,260 | 432,887 | 243,474 | |
Supplemental disclosure of cash flow information | ||||
Cash payments for interest | 26,907 | 85,151 | 114,891 | |
Cash (receipts from) payments for income taxes | 31,496 | 29,405 | 46,884 | |
Supplemental disclosure of noncash investing and financing activities | ||||
Loans transferred to repossessed properties | $ (4,211) | $ (14,088) | $ (25,668) | |
[1] | For the fiscal year ended September 30, 2021, this line includes a $1.1 million reversal of provision for unfunded commitments reserve. | |||
[2] | For the fiscal year ended September 30, 2021, this line includes a $1.1 million reversal of provision for unfunded commitments reserve. For the fiscal years ended September 30, 2020 and 2019, provision for unfunded commitments reserve of $1.9 million and $0.0 million, respectively, was recorded in other noninterest expense in the consolidated income statement. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | |||
(Reversal of) provision for unfunded commitments | $ (1.1) | $ 1.9 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting 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 banking in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. Substantially all of the Company's income is generated from banking operations. 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. Segment Reporting The "Segment Reporting" topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a regional bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized and does not allocate resources around discernible lines of business or geographies and prefers to work as an integrated unit to customize solutions for its customers, with business line and geographic emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment, which is consistent with the Company’s preparation of financial information that is evaluated regularly by management in deciding how to allocate resources and assess performance. Basis of Presentation and Principles of Consolidation The accounting and reporting policies of the Company conform with GAAP, SEC rules and interpretive releases and prevailing practices within the banking industry. All significant income and expenses are recorded on the accrual basis. The accompanying consolidated financial statements include the accounts and results of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Company’s wholly-owned subsidiaries Great Western Statutory Trust IV, GWB Capital Trust VI, Sunstate Bancshares Trust II, HF Financial Capital Trust III, HF Financial Capital Trust IV, HF Financial Capital Trust V and HF Financial Capital Trust VI are VIEs for which the Company is not the primary beneficiary. Accordingly, the accounts of these trusts are not included on the Company’s consolidated financial statements. In addition, the Company also has a variable interest in an affordable housing limited partnership of which it is not the primary beneficiary. This entity is not included in the Company's consolidated financial statements. Certain previously reported amounts have been reclassified to conform to the current presentation. Use of Estimates GAAP requires management to make estimates and assumptions that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Subsequent Events On October 26, 2021, the Board of Directors of the Company declared a dividend of $0.05 per common share payable on November 26, 2021 to stockholders of record as of close of business on November 12, 2021. The Company evaluated subsequent events through the date its consolidated financial statements were issued. Other than those described above, there were no other material events or transactions that would require recognition on the consolidated financial statements or disclosure in the notes to the consolidated financial statements. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations ("ASC 805"). The Company recognizes the fair value of the assets acquired and liabilities assumed, immediately expenses transaction costs and accounts for restructuring plans separately from the business combination. There is no separate recognition of the acquired allowance for credit losses on the acquirer’s balance sheet as credit related factors are incorporated directly into the fair value of the loans recorded at the acquisition date. The excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired is recorded as goodwill. Alternatively, a bargain purchase gain is recorded equal to the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. Results of operations of the acquired business are included on the consolidated statements of income from the effective date of acquisition. Fair values are subject to refinement for up to a year after the closing date of an acquisition as information relative to closing date fair values becomes available. Adjustments recorded to the acquired assets and liabilities are applied prospectively in accordance with ASU 2015-16. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, management has defined cash and cash equivalents to include cash on hand, amounts due from banks (including cash items in process of clearing), and amounts held at other financial institutions with an initial maturity of 90 days or less. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell are accounted for as collateralized financing transactions with a receivable recorded on the consolidated balance sheet at the amounts at which the securities were acquired, plus accrued interest. Collateral requirements are continually monitored and additional collateral is received as required. Securities received from counterparties under agreements to resell are not recognized on the consolidated balance sheet unless the counterparty defaults. The securities received under reverse repurchase transactions are residential mortgage-backed securities. Reverse repurchase transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require additional collateral pledged if the counterparty's collateral value drops below specified collateral levels. Securities Investment securities are accounted for according to their purpose and holding period. Debt securities held for resale are classified as trading. Trading securities are stated at fair value. Realized and unrealized gains and losses from sales and fair value adjustments of trading securities are included in other noninterest income on the consolidated statements of income. There were no trading securities held at September 30, 2021 and September 30, 2020. Debt securities for which the Company has the ability and positive intent to hold until maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost, which represents actual cost adjusted for premium amortization and discount accretion. All other securities are classified as available for sale as they may be sold prior to maturity in response to changes in the Company’s interest rate risk profile, funding needs, demand for collateralized deposits by public entities or other reasons. Available for sale securities are stated at fair value. For available for sale debt securities in an unrealized loss position, management first evaluates whether (1) the Company has the intent to sell a security; or (2) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in the consolidated income statement with a corresponding adjustment to the security's amortized cost basis. If neither criteria is met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Furthermore, securities issued by the U.S. Government or a U.S. Government sponsored enterprise which carry the explicit or implicit guarantee of the U.S. Government are considered "risk-free" and therefore no credit losses are assumed on those securities. If the assessment indicates a credit loss exists, the amortized cost basis is compared to the present value of cash flows expected to be collected from the security; if it is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded. Changes in the allowance for credit losses are recorded as a provision for (reversal of) credit losses in the consolidated income statement. If the assessment indicates a credit loss does not exist, the change in fair value is recorded as unrealized gains and losses, net of related taxes, and is included in stockholders’ equity as a component of accumulated other comprehensive income (loss). Equity securities are carried at fair value, with changes in fair value reported in the consolidated statements of income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment. Realized gains and losses are recorded in noninterest income on the consolidated statements of income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfer of debt securities from the available for sale category to the hold to maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the hold to maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. Federal Home Loan Bank Stock Investments in the FHLB stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible credit related impairment, and the cost basis of this investment is reduced by any declines in value determined to be credit related. FHLB stock is included in other assets on the consolidated balance sheets. Loans Originated Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at amortized cost (i.e., outstanding principal balance, adjusted for charge-offs and any unamortized deferred fees or costs). Other fees not associated with originating a loan are recognized as fee income when earned. Interest income on loans is accrued daily on the outstanding balances. A loan is placed on nonaccrual status when management believes, after considering collection efforts and other factors, the borrower's condition is such that collection of interest is doubtful, which is generally 90 days past due. When loans are placed on nonaccrual status, accrual of interest is discontinued and interest receivable is reversed against interest income in the current period. Interest payments received thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest. For loans held for sale, loan fees charged or received on origination, net of certain direct loan origination costs, are recognized in income when the related loan is sold. For loans held for investment, loan fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company is generally amortizing these amounts over the contractual lives of the loans. Commitment fees are recognized as income when received. The Company makes commercial, agricultural, residential real estate, consumer and other loans to customers primarily in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Collateral held varies but includes accounts receivable, marketable securities, inventory, equipment and real estate. Personal guarantees of the borrower or related parties and government guarantees are also obtained for some loans, which reduces the Company’s risk of loss. Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. Loans held for sale include fixed rate single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans are carried at cost and sold within 45 days. These loans are sold with the mortgage servicing rights released. Under limited circumstances, buyers may have recourse to return a purchased loan to the Company. Recourse conditions may include early payment default, breach of representation or warranties, or documentation deficiencies. Fair value of loans held for sale is determined based on prevailing market prices for loans with similar characteristics, sale contract prices, or, for certain portfolios, discounted cash flow analysis. Declines in fair value below cost (and subsequent recoveries) are recognized in mortgage banking income, net. Deferred fees and costs related to these loans are not amortized but are recognized as part of the cost basis of the loan at the time it is sold. Gains or losses on sales are recognized upon delivery and included in mortgage banking income, net on the consolidated statements of income. Loans at Fair Value Under the Fair Value Option ("FVO loans") The Company has elected to measure certain long-term loans and written loan commitments at fair value to assist in managing interest rate risk for longer-term loans. Fair value loans are fixed-rate loans having original maturities of 5 years or greater (typically between 5 and 15 years) to our business and agri-business banking customers to assist them in facilitating their risk management strategies. The fair value option was elected upon the origination or acquisition of these loans and written loan commitments. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon closing. The Company has also entered into interest rate derivative contracts to convert these long term fixed rate loans to variable rates. These contracts do not quality for hedge accounting and instead these interest rate derivative instruments are recognized as other assets or other liabilities on the consolidated balance sheets and measured at fair value, with changes in fair value reported in change in fair value of FVO loans and related derivatives on the consolidated statements of income. Since each fixed rate loan is paired with an offsetting derivative contract, the impact to net income is minimized. When determined necessary, a credit mark is applied against the valuation of the asset that reflects the borrower's credit worthiness. Changes in the credit mark are included in change in fair value of FVO loans and related derivatives on the consolidated statements of income. Credit Risk Management The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s strategy for credit risk management includes well-defined, centralized credit policies, uniform underwriting criteria and ongoing risk monitoring and review processes for all credit exposures. The strategy also emphasizes diversification on a geographic, industry, loan class type, and customer level; regular credit examinations; and management reviews of loans exhibiting deterioration of credit quality. The credit risk management strategy also includes a credit risk assessment process that performs assessments of compliance with commercial and consumer credit policies, risk ratings, and other critical credit information. Loan decisions are documented with respect to the borrower’s business, purpose of the loan, evaluation of the repayment sources, and the associated risks, evaluation of collateral, covenants and monitoring requirements, and risk rating rationale. The Company assigns all non-consumer loans a credit quality risk rating. The Company implemented a more granular risk rating methodology as of October 1, 2020. See the table below for a summary of credit quality risk ratings at September 30, 2021. Prior to October 1, 2020, the Company assigned all non-consumer loans a credit quality risk rating. These ratings were Pass, Watch, Substandard, Doubtful and Loss. Loans with a Pass and Watch rating represented 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 were those where a well-defined weakness had been identified that may have put full-collection of contractual debt at risk. Doubtful loans were those where a well-defined weakness had been identified and a loss of contractual debt was probable. Credit Quality Credit Quality Indicators Pass Commercial loans within this category are not adversely rated, current as to principal and interest, and are otherwise in material compliance with the contractual terms of the loan agreement. Management believes there is a low likelihood of loss related to loans in this category. Special Mention Commercial loans within this category have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant an adverse classification. Substandard Commercial loans within this category are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans in this category are assigned a workout loan officer to closely monitor the relationship. Doubtful Commercial loans within this category are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Revolving lines of credit rated Substandard or Doubtful require a higher level of approval and are reviewed quarterly. Advances are allowed to support the continued operating needs of the borrower for their operation and may include, but not limited to, working capital needs to support inventory, accounts receivable, payroll, tax payments, utilities and other needs to operate the business. All non-consumer loan risk ratings are monitored by management and updated as deemed appropriate. The Company generally does not risk rate residential real estate or consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, delinquencies are monitored and standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. Troubled Debt Restructurings Loans modified under troubled debt restructurings involve granting a concession to a borrower who is experiencing financial difficulty. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection, which generally would not otherwise be considered. The Company's TDRs include performing and nonperforming TDRs, which consist of loans that continue to accrue interest at the loan's original interest rate when the Company expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include loans that are in a nonaccrual status and are no longer accruing interest, as the Company does not expect to collect the full amount of principal and interest owed from the borrower on these loans. At the time of modification (except for loans on nonaccrual status), a TDR is classified as nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the loan is moved to a performing status (performing TDR). If the Company does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the analysis of the allowance for credit losses. A TDR that has been renewed for a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a renewal is no longer considered a TDR. In March 2020, a statement was issued by our banking regulators titled "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until December 31, 2020. In December 2020, the Economic Aid to Hard Hit Small Businesses, Non-Profits, and Ventures Act was enacted, which extended the TDR provisions of the CARES Act to January 1, 2022. Accordingly, in appropriate circumstances we are offering short-term modifications made in response to COVID-19 to borrowers who are current. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Allowance for Credit Losses ("ACL") The Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, which uses the current expected credit loss model ("CECL") to determine the allowance for credit losses 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 measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and the net investments in leases recognized by a lessor in accordance with Topic 842 on leases. The CECL methodology requires recognition of lifetime expected credit losses that takes into consideration all relevant information, including historical losses, current conditions and reasonable and supportable forecasts of future operating conditions. Loans that do not share similar risk characteristics and are collateral dependent, primarily large loans on nonaccrual status and those which have undergone a TDR, are evaluated on an individual basis ("individual reserve"). The reserve related to these loans is calculated using the collateral available to repay the loan, most typically the liquidation value of the collateral (less selling costs, if applicable). The Company has chosen to continue to include small, less complex loans within the collective reserve for loans on nonaccrual or with TDR status. Loans that are not reserved for on an individual basis are measured on a collective, or pooled basis ("collective reserve"). Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. The historical loss experience of the pool is generally the starting point for estimating expected credit losses under the collective reserve methodology. The historical loss experience rate of the loan pool is applied to each loan within the segment over the contractual life of each loan, adjusted for estimated prepayments. Management then determines an appropriate macroeconomic forecast based on the expectation of future conditions, including but not limited to the unemployment rate, which is the most significant factor, gross domestic product and corporate bond spreads, and applies the forecast to models which estimate the change in loss expectations relative to the historical loss rates. These models have been implemented in accordance with the Company's Model Risk Management Policy. Additionally, using its more granular risk rating system, the Company evaluates if the current credit quality of the portfolio materially differs from the one observed over the historical loss period and applies adjustments to the allowance accordingly. Qualitative adjustments may also be made to expected losses based on current and future conditions that may not be fully captured in the modeling components above, such as but not limited to industry, geographic and borrower concentrations, loans servicing practices and changes in underwriting criteria as well as the impact of economic events that are not captured in the historical loss experience or modeled losses. ASU 2016-13 requires institutions to establish a supportable forecast and reversion period for forecasted operating conditions. Management determined a two-year forecast period would capture the majority of the impact associated with current economic conditions and is short enough to be supportable. Additionally, loss rate forecasts follow a straight-line reversion back to the historical loss rate over one year following the initial forecast period. The following table describes the Company’s eight loan portfolio pools, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. Loan Segment Composition Collateral Primary Source of Repayment Key Risk Characteristics Construction and development 1 Commercial and residential construction loans Secured by commercial and residential real estate Cash flows Industry and geography of borrower's business, purpose of the loan, repayment sources, borrower's capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Owner-occupied CRE Small and middle market businesses Secured by commercial real estate Non-owner-occupied CRE Multifamily residential real estate Agriculture Agri-business operating and real estate loans Secured by operating assets, agricultural real estate, and guarantees of owners Cash flows Geography of the borrower's operations, commodity type and prices and weather patterns, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Commercial non-real estate Small and middle market businesses and loans made to public sector Secured by business assets and guarantees of owners Cash flows Industry and geography of the borrower's business, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Residential real estate Residential mortgages and home equity loans and lines Secured by residential real estate Borrower's income Borrower's capacity and willingness to repay, unemployment rates and other economic factors, and customer repayment history Consumer and other Consumer loans and all other loan relationships that do not fit within categories above, including consumer and commercial credit cards and consumer deposit account overdrafts Secured by automobiles, unsecured 1 Residential real estate construction loans are included in the construction and development segment until construction is completed, after which the loan is moved to the residential real estate loan segment. Changes to the allowance for credit losses are made by charges to the provision for credit losses, which is reflected on the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans deemed to be uncollectible are charged off against the allowance for credit losses. Recoveries of amounts previously charged-off are credited to the allowance for credit losses. Prior to October 1, 2020, the allowance for credit losses was established based on an incurred loss model. Incurred loss estimates primarily were based on historical loss experience and portfolio mix. Incurred loss estimates also considered qualitative factors, which were not reflected in historical loss experience. Unfunded Commitments and Unfunded Commitments Reserve Unfunded residential mortgage loan commitments entered into in connection with mortgage loans to be held for sale are considered derivatives and are recorded at fair value and included in accrued expenses and other liabilities on the consolidated balance sheets with changes in fair value recorded in other interest income in the consolidated statements of income. All other unfunded loan commitments are generally related to providing credit facilities to customers and are not considered derivatives. The unfunded commitments reserve ("unfunded reserve") presents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. An unfunded reserve is not recognized for commitments unconditionally cancellable by the Company, which includes credit cards, warehouse lines of credit and other re |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Accounting Standards Adopted in Fiscal Year 2021 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, which address recording of estimated lifetime credit losses on loans, including funded and unfunded commitments, and other financial instruments held by financial institutions and other organizations. ASU 2016-13, as amended, requires institutions to measure all expected credit losses related to financial assets measured at amortized cost 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 CECL model. ASU 2016-13, as amended, 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. The measurement of expected losses under CECL is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held to maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit and other similar instruments). In addition, CECL requires debt securities available for sale with an unrealized loss to be recognized as allowance for credit loss rather than as a write-down of the securities amortized cost basis when management intends to sell or believes that it is not more-likely-than-not that they will be required to sell the securities prior to recovery of the securities amortized cost to be recognized as allowance for credit loss rather than as a write-down of the securities amortized cost basis. The CECL standard does not apply to the loan portfolio accounted for using the fair value option. The Company identified eight loan portfolio pools for which a model has been established to estimate credit losses. The historical data sets of these pools were identified, populated and validated. Each segment contains loans which have similar risk characteristics. Not unlike the incurred loss model, each segment is split into loans that are individually assessed and those that are collectively assessed. The Company adopted the standard on October 1, 2020, and applied the standard's provisions under the modified retrospective approach. Upon adoption of the standard, the Company recorded a $177.3 million increase to the ACL, of which $1.5 million related to the transfer of discounts on previously acquired loans and $175.8 million related to changes from the incurred loss model to the CECL model, which resulted in a cumulative effect adjustment decrease of $132.9 million (after-tax) to retained earnings. The tax effect resulted in a $42.9 million increase in deferred tax assets. In addition, the Company has elected the 5 year CECL transition for regulatory capital ratios, resulting in an add-back of $129.5 million to common equity tier 1 capital in the first fiscal quarter 2021. The following table presents the composition of loans and allowance by portfolio segment as of September 30, 2020, as adjusted at September 30, 2020 and October 1, 2020. Reported Balance September 30, Reclassifications ¹ Unamortized Discounts, Unearned Net Deferred Fees and Net Loans in Process Included in Amortized Cost ² Adjusted Balance September 30, Adoption of ASU 2016-13, as amended ³ Adjusted Balance October 1, 2020 (dollars in thousands) Loans: Construction and development n/a ⁴ $ 512,539 $ (2,895) $ 509,644 $ — $ 509,644 Owner-occupied CRE n/a ⁴ 1,420,061 (2,667) 1,417,394 36 1,417,430 Non-owner-occupied CRE n/a ⁴ 2,902,612 (8,232) 2,894,380 1,497 2,895,877 Multifamily residential real estate n/a ⁴ 536,828 (2,845) 533,983 (8) 533,975 Total commercial real estate $ 5,274,941 (5,274,941) — — — — Agriculture 1,724,350 — (1,654) 1,722,696 55 1,722,751 Commercial non-real estate 2,181,656 — (16,618) 2,165,038 (85) 2,164,953 Residential real estate 830,102 (97,099) (2,191) 730,812 23 730,835 Consumer and other — 100,553 1,642 102,195 (20) 102,175 Consumer 63,206 (63,206) — — — — Other 37,347 (37,347) — — — — Ending balance 10,111,602 — (35,460) 10,076,142 1,498 10,077,640 Less: Unamortized discount (8,215) — 8,215 — — — Unearned net deferred fees and costs and net loans in process (27,245) — 27,245 — — — Total $ 10,076,142 $ — $ — $ 10,076,142 $ 1,498 $ 10,077,640 Allowance: Construction and development n/a ⁴ $ (7,012) $ — $ (7,012) $ (11,963) $ (18,975) Owner-occupied CRE n/a ⁴ (20,530) — (20,530) (4,298) (24,828) Non-owner-occupied CRE n/a ⁴ (50,965) — (50,965) (98,986) (149,951) Multifamily residential real estate n/a ⁴ (6,726) — (6,726) (2,681) (9,407) Total commercial real estate $ (84,496) 84,496 — — — — Agriculture (27,018) — — (27,018) (24,360) (51,378) Commercial non-real estate (27,599) — — (27,599) (32,938) (60,537) Residential real estate (8,202) 737 — (7,465) (2,595) (10,060) Consumer and other (2,572) — — (2,572) 532 (2,040) Total $ (149,887) $ — $ — $ (149,887) $ (177,289) $ (327,176) 1 Reclassifications made from reported loan and related allowance segments to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, to estimate credit losses. 2 Unamortized discount on acquired loans, unearned net deferred fees and costs and net loans in process to related were assigned to appropriate loan portfolio segment to present loan categories at amortized cost. 3 Discounts on previously acquired loans and Day 1 impact of adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, were transferred to allowance for credit losses as a part of CECL adoption. 4 Balance for this segment is included in total commercial real estate for September 30, 2020. The Company did not record an allowance for available for sale securities upon adoption as the investment portfolio consisted primarily of debt securities explicitly or implicitly backed by the U.S. Government for which expected credit loss is zero. We adopted the CECL standard using the prospective transition approach for financial assets purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, we did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On October 1, 2020, the Company determined $1.5 million of existing discounts on PCD loans was related to credit factors and was reclassified to the ACL. The remaining noncredit discount of $6.7 million was determined to be related to noncredit factors and will be accreted into interest income on a level-yield method over the remaining life of the loans. For additional information, see "Note 1. Nature of Operations and Summary of Significant Policies", "Note 4. Securities Available for Sale", and "Note 5. Loans and Allowance for Credit Losses." 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 eliminated, added and modified certain disclosure requirements for fair value measurements. Among the changes, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted the standard on October 1, 2020. The adoption of this guidance did not have a material impact to the consolidated financial statements. Accounting Standards Not Yet Adopted in Fiscal Year 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements and does not plan early adoption. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 , which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not expect adoption to have a material impact on the consolidated financial statements and does not plan early adoption. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. As of September 30, 2021 the Company accounted for all of their interest rate swaps and other derivatives using the Fair Value Option and did not have any interest rate swaps or other derivatives identified as cash flow hedges. As such the Company believes his accounting pronouncement will have a minimal impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments also optionally apply to all entities that designate receive-variable rate, pay-variable-rate cross-currency interest rate swaps as hedging instruments in net investment hedges that are modified as a result of reference rate reform. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 has not had, and is not expected to have, a material impact on the Company’s consolidated financial statements. In July 2021, the FASB issues ASU 2021-05, Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments , which updates guidance in Topic 842, to restore long-standing accounting practice for certain sales-type leases with variable payments. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on our financial statements. |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash EquivalentsThe Company is required to maintain reserve balances in cash and on deposit with the Federal Reserve based on a percentage of transactional deposits, however the Federal Reserve reduced reserve requirement to zero effective March 26, 2020, therefore the total requirement was zero at both September 30, 2021 and 2020. |
Securities
Securities | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following table presents amortized cost and approximate fair value of investments in securities. September 30, 2021 September 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) Securities available for sale U.S. Treasury securities $ 99,093 $ — $ (306) $ 98,787 $ 49,924 $ 228 $ — $ 50,152 U.S. Agency securities 24,976 — (928) 24,048 24,974 86 — 25,060 Mortgage-backed securities: Government National Mortgage Association 284,757 5,303 (386) 289,674 485,689 11,481 (43) 497,127 Federal Home Loan Mortgage Corporation 1,033,335 9,558 (10,391) 1,032,502 578,650 18,919 (9) 597,560 Federal National Mortgage Association 575,336 3,883 (6,011) 573,208 287,842 7,788 (16) 295,614 Small Business Assistance Program 235,402 5,679 (1,204) 239,877 244,653 7,884 (58) 252,479 States and political subdivision securities 43,614 940 (4) 44,550 54,224 1,356 — 55,580 Corporate debt securities 39,000 519 — 39,519 — — — — Other 1,006 31 — 1,037 1,006 48 — 1,054 Total $ 2,336,519 $ 25,913 $ (19,230) $ 2,343,202 $ 1,726,962 $ 47,790 $ (126) $ 1,774,626 Securities held to maturity U.S. Treasury securities $ 27,782 $ 7 $ (250) $ 27,539 $ — $ — $ — $ — Mortgage-backed securities: Government National Mortgage Association 55,698 — (298) 55,400 — — — — Federal Home Loan Mortgage Corporation 130,272 30 (789) 129,513 — — — — Federal National Mortgage Association 84,002 — (627) 83,375 — — — — Small Business Assistance Program 66,547 — (1,212) 65,335 — — — — States and political subdivision securities 3,450 — — 3,450 — — — — Total $ 367,751 $ 37 $ (3,176) $ 364,612 $ — $ — $ — $ — The Company elected to exclude accrued interest receivable from the amortized cost basis of debt securities disclosed throughout this footnote. Accrued interest receivable on debt securities totaled $5.0 million and $4.5 million as of September 30, 2021 and September 30, 2020, respectively. Accrued interest receivable for debt securities is included in accrued interest receivable on the consolidated balance sheets. As September 30, 2021 and September 30, 2020 the Company had no transfers from held to maturity debt securities. The amortized cost and approximate fair value of debt securities of September 30, 2021 and 2020, 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 any penalty. September 30, 2021 September 30, 2020 Amortized Estimated Amortized Estimated (dollars in thousands) Securities available for sale Due in one year or less $ 15,745 $ 15,808 $ 67,131 $ 67,456 Due after one year through five years 131,241 131,412 51,779 52,694 Due after five years through ten years 59,697 59,684 10,212 10,642 Due after ten years — — — — 206,683 206,904 129,122 130,792 Mortgage-backed securities 2,128,830 2,135,261 1,596,834 1,642,780 Securities without contractual maturities 1,006 1,037 1,006 1,054 Total $ 2,336,519 $ 2,343,202 $ 1,726,962 $ 1,774,626 Securities held to maturity Due in one year or less $ 150 $ 150 $ — $ — Due after one year through five years 500 500 — — Due after five years through ten years 30,582 30,339 — — Due after ten years — — — — 31,232 30,989 — — Mortgage-backed securities 336,519 333,623 — — Securities without contractual maturities — — — — Total $ 367,751 $ 364,612 $ — $ — Proceeds from sales of securities available for sale were $0.0 million, $151.9 million and $175.0 million for the fiscal years ended September 30, 2021, 2020 and 2019 respectively. Gross gains (pre-tax) of $0.0 million, $7.9 million and $0.3 million were realized on the sales for the fiscal years ended September 30, 2021, 2020 and 2019, respectively, using the specific identification method. Gross losses (pre-tax) were $0.0 million, nominal and $0.5 million for the fiscal years ended September 30, 2021, 2020 and 2019, respectively, using the specific identification method. There were no sales of securities held to maturity for each of the fiscal years ended September 30, 2021, 2020 and 2019 respectively and as such there were no proceeds from the sales of securities held to maturity for the same periods. No gross gains (pre-tax) were realized on the sales for the fiscal years ended September 30, 2021, 2020 and 2019, respectively, using the specific identification method. No gross losses (pre-tax) were realized on the sales for the fiscal years ended September 30, 2021, 2020 and 2019, respectively, using the specific identification method. As detailed in the following tables, certain investments in available for sale debt securities, which are approximately 55% and 6% of the Company’s investment portfolio at September 30, 2021 and 2020, 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 not the result of credit losses at September 30, 2021, and therefore, an allowance for credit losses was not recorded. Substantially all of the Company's held to maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as "risk free" and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for those securities at September 30, 2021. In addition, the Company does not intend to sell these securities, and it is not more likely than not the Company will be required to sell the investment securities before recover of their amortized cost basis, which may be maturity. Prior to the adoption of ASU 2016-13, as amended, the Company recognized no other-than-temporary impairment for the fiscal years ended September 30, 2020 and 2019. Securities with an estimated fair value of approximately $1.26 billion and $1.10 billion at September 30, 2021 and 2020, respectively, were pledged as collateral on public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The counterparties do not have the right to sell or pledge the securities the Company has pledged as collateral. The following table presents the Company’s gross unrealized losses and approximate fair value of debt securities, separated by length of time that individual securities have been in a continuous unrealized loss position. As of September 30, 2021 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) Securities available for sale U.S. Treasury securities $ 98,787 $ (306) $ — $ — $ 98,787 $ (306) U.S. Agency securities 24,048 (928) — — 24,048 (928) Mortgage-backed securities 1,127,522 (17,706) 24,822 (286) 1,152,344 (17,992) States and political subdivision securities 2,496 (4) — — 2,496 (4) Total $ 1,252,853 $ (18,944) $ 24,822 $ (286) $ 1,277,675 $ (19,230) Securities held to maturity U.S. Treasury securities $ 13,819 $ (250) $ — $ — $ 13,819 $ (250) Mortgage-backed securities 323,815 (2,926) — — 323,815 (2,926) States and political subdivision securities — — — — — — Total $ 337,634 $ (3,176) $ — $ — $ 337,634 $ (3,176) As of September 30, 2020 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) Securities available for sale U.S. Treasury securities $ — $ — $ — $ — $ — $ — U.S. Agency securities — — — — — — Mortgage-backed securities 71,547 (103) 27,897 (23) 99,444 (126) Total $ 71,547 $ (103) $ 27,897 $ (23) $ 99,444 $ (126) Securities held to maturity U.S. Treasury securities $ — $ — $ — $ — $ — $ — Mortgage-backed securities — — — — — — States and political subdivision securities — — — — — — Total $ — $ — $ — $ — $ — $ — As of September 30, 2021 and 2020, the Company had 118 and 18 available for sale securities, respectively, in an unrealized loss position. As of September 30, 2021 and September 30, 2020, the Company had 26 and no held to maturity securities, respectively, in an unrealized loss position. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses The following table presents the composition of loans at amortized cost as of September 30, 2021 and 2020. September 30, 2021 September 30, 2020 Total Loans Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost Total Loans ² Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost (dollars in thousands) Construction and development $ 394,712 $ — $ — $ 394,712 $ 509,644 $ — $ — $ 509,644 Owner-occupied CRE 1,357,715 91,793 54,133 1,211,789 1,417,394 109,097 48,468 1,259,829 Non-owner-occupied CRE 2,191,848 224,863 21,072 1,945,913 2,894,380 283,266 27,402 2,583,712 Multifamily residential real estate 539,063 1,453 — 537,610 533,983 3,847 — 530,136 Total commercial real estate 4,483,338 318,109 75,205 4,090,024 5,355,401 396,210 75,870 4,883,321 Agriculture 1,428,614 96,393 19,667 1,312,554 1,722,696 129,041 42,353 1,551,302 Commercial non-real estate 1,535,394 110,031 239,850 1,185,513 2,165,038 129,934 744,371 1,290,733 Residential real estate ³ 628,098 — 271 627,827 730,812 — 290 730,522 Consumer and other ⁴ 109,609 — — 109,609 102,195 — — 102,195 Total $ 8,185,053 $ 524,533 $ 334,993 $ 7,325,527 $ 10,076,142 $ 655,185 $ 862,884 $ 8,558,073 1 Includes loans guaranteed by agencies of the U.S. government. 2 As a part of the adoption of CECL, loan pools are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, and unearned net deferred fees and costs. For additional information on September 30, 2020 loan segment balances, see Note 2. 3 Includes residential real estate loans held for sale of $2.9 million and $12.4 million at September 30, 2021 and September 30, 2020, respectively, recorded at the lower of cost or fair value. 4 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts and loans in process. The following table presents the Company’s past due loans at amortized cost as of September 30, 2021. This table excludes loans measured at fair value under the fair value option of $524.5 million at September 30, 2021. As of September 30, 2021 Current or Less Than 30 Days Past Due 30-89 Days Past Due 90+ Days Past Due Total (dollars in thousands) Construction and development $ 394,692 $ — $ 20 $ 394,712 Owner-occupied CRE 1,243,816 478 21,628 1,265,922 Non-owner-occupied CRE 1,960,490 — 6,495 1,966,985 Multifamily residential real estate 530,823 — 6,787 537,610 Total commercial real estate 4,129,821 478 34,930 4,165,229 Agriculture 1,204,978 2,730 124,513 1,332,221 Commercial non-real estate 1,402,902 3,158 19,303 1,425,363 Residential real estate 621,019 825 6,254 628,098 Consumer and other 109,467 67 75 109,609 Total $ 7,468,187 $ 7,258 $ 185,075 $ 7,660,520 The following table presents the Company’s past due loans at September 30, 2020. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value under the fair value option of $655.2 million at September 30, 2020. As of September 30, 2020 Current or Less Than 30 Days Past Due 30-89 Days Past Due 90+ Days Past Due and Nonaccrual Total (dollars in thousands) Commercial real estate $ 4,790,963 $ 8,894 $ 73,146 $ 4,873,003 Agriculture 1,317,377 60,020 217,642 1,595,039 Commercial non-real estate 2,021,308 3,512 26,843 2,051,663 Residential real estate 821,154 2,459 4,441 828,054 Consumer and other 100,319 45 74 100,438 Total $ 9,051,121 $ 74,930 $ 322,146 $ 9,448,197 The following table provides additional information on nonaccrual loans for the fiscal year ended September 30, 2021. The Company recognized $8.8 million of interest income on nonaccrual loans during the fiscal year ended September 30, 2021. September 30, 2020 September 30, 2021 Fiscal Year Ended September 30, 2021 Nonaccrual Nonaccrual 90+ Days Past Due and Still Accruing Nonaccrual Loans with No Related ACL Accrued Interest Written Off on Nonaccrual Loans (dollars in thousands) Construction and development n/a ¹ $ 20 $ — $ — $ 115 Owner-occupied CRE n/a ¹ 21,628 — 7,587 31 Non-owner-occupied CRE n/a ¹ 6,495 — 1,542 1,922 Multifamily residential real estate n/a ¹ 6,787 — 6,788 40 Total commercial real estate $ 73,146 34,930 — 15,917 2,108 Agriculture 217,642 124,513 — 36,997 821 Commercial non-real estate 26,843 19,303 — 5,862 36 Residential real estate 4,441 6,254 — 87 77 Consumer and other 74 34 41 — 1 Total $ 322,146 $ 185,034 $ 41 $ 58,863 $ 3,043 1 Balance for this segment is included in total commercial real estate for September 30, 2020. This table presents the loans based on credit quality, loan segment and year of origination at amortized cost and excludes loans measured at fair value under the fair value option of $524.5 million at September 30, 2021. Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Construction and development Pass $ 181,518 $ 63,253 $ 64,501 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 383,868 Special Mention 2,543 — 195 — — — — — 2,738 Substandard 6,171 — 1,935 — — — — — 8,106 Doubtful — — — — — — — — — Total construction and development $ 190,232 $ 63,253 $ 66,631 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 394,712 Owner-occupied CRE Pass $ 352,292 $ 341,767 $ 147,407 $ 91,080 $ 103,741 $ 114,949 $ 46,110 $ — $ 1,197,346 Special Mention 7,866 1,533 4,297 5,749 2,703 1,113 90 — 23,351 Substandard 7,504 3,323 2,246 11,040 11,083 6,021 74 — 41,291 Doubtful — — 1,967 — 1,967 — — — 3,934 Total owner-occupied CRE $ 367,662 $ 346,623 $ 155,917 $ 107,869 $ 119,494 $ 122,083 $ 46,274 $ — $ 1,265,922 Non-owner-occupied CRE Pass $ 310,329 $ 314,159 $ 245,293 $ 252,507 $ 211,459 $ 199,345 $ 34,666 $ — $ 1,567,758 Special Mention 24,487 28,225 47,108 65,763 23,115 13,597 — — 202,295 Substandard 77,924 4,000 31,510 32,282 18,692 7,989 24,174 — 196,571 Doubtful 361 — — — — — — — 361 Total non-owner-occupied CRE $ 413,101 $ 346,384 $ 323,911 $ 350,552 $ 253,266 $ 220,931 $ 58,840 $ — $ 1,966,985 Multifamily residential real estate Pass $ 228,989 $ 95,450 $ 112,945 $ 56,312 $ 5,320 $ 28,708 $ 1,215 $ — $ 528,939 Special Mention — — — — 31 239 — — 270 Substandard — 494 — 806 — 313 — — 1,613 Doubtful — 6,788 — — — — — — 6,788 Total multifamily residential real estate $ 228,989 $ 102,732 $ 112,945 $ 57,118 $ 5,351 $ 29,260 $ 1,215 $ — $ 537,610 Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Total commercial real estate Pass $ 1,073,128 $ 814,629 $ 570,146 $ 408,598 $ 321,218 $ 343,294 $ 146,898 $ — $ 3,677,911 Special Mention 34,896 29,758 51,600 71,512 25,849 14,949 90 — 228,654 Substandard 91,599 7,817 35,691 44,128 29,775 14,323 24,248 — 247,581 Doubtful 361 6,788 1,967 — 1,967 — — — 11,083 Total commercial real estate $ 1,199,984 $ 858,992 $ 659,404 $ 524,238 $ 378,809 $ 372,566 $ 171,236 $ — $ 4,165,229 Agriculture Pass $ 231,671 $ 130,681 $ 68,677 $ 55,087 $ 50,028 $ 17,559 $ 453,992 $ — $ 1,007,695 Special Mention 23,159 10,736 3,404 16,389 4,825 3,300 26,554 — 88,367 Substandard 29,537 10,545 12,574 35,213 35,401 4,246 85,750 — 213,266 Doubtful 1,748 — 641 19,277 883 — 344 — 22,893 Total agriculture $ 286,115 $ 151,962 $ 85,296 $ 125,966 $ 91,137 $ 25,105 $ 566,640 $ — $ 1,332,221 Commercial non-real estate Pass $ 388,893 $ 163,792 $ 165,759 $ 36,469 $ 25,612 $ 28,525 $ 531,277 $ — $ 1,340,327 Special Mention 318 611 2,622 1,137 2,417 821 16,259 — 24,185 Substandard 22,070 6,294 1,164 6,814 62 1,048 18,967 — 56,419 Doubtful — — 43 — — 3,955 434 — 4,432 Total commercial non-real estate $ 411,281 $ 170,697 $ 169,588 $ 44,420 $ 28,091 $ 34,349 $ 566,937 $ — $ 1,425,363 Residential real estate ¹ Pass $ 153,505 $ 163,337 $ 52,833 $ 36,323 $ 21,777 $ 87,246 $ 102,039 $ 271 $ 617,331 Special Mention 754 178 1,013 256 19 240 543 — 3,003 Substandard 36 444 821 771 485 4,364 843 — 7,764 Doubtful — — — — — — — — — Total residential real estate $ 154,295 $ 163,959 $ 54,667 $ 37,350 $ 22,281 $ 91,850 $ 103,425 $ 271 $ 628,098 Consumer and other ¹ Pass $ 26,157 $ 10,371 $ 15,814 $ 1,532 $ 542 $ 571 $ 54,588 $ — $ 109,575 Special Mention — — — — — — — — — Substandard — 5 8 8 — — 13 — 34 Doubtful — — — — — — — — — Total consumer and other $ 26,157 $ 10,376 $ 15,822 $ 1,540 $ 542 $ 571 $ 54,601 $ — $ 109,609 Total loans Pass $ 1,873,354 $ 1,282,810 $ 873,229 $ 538,009 $ 419,177 $ 477,195 $ 1,288,794 $ 271 $ 6,752,839 Special Mention 59,127 41,283 58,639 89,294 33,110 19,310 43,446 — 344,209 Substandard 143,242 25,105 50,258 86,934 65,723 23,981 129,821 — 525,064 Doubtful 2,109 6,788 2,651 19,277 2,850 3,955 778 — 38,408 Total loans $ 2,077,832 $ 1,355,986 $ 984,777 $ 733,514 $ 520,860 $ 524,441 $ 1,462,839 $ 271 $ 7,660,520 1 The Company generally does not risk rate residential real estate or consumer and other 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 and other loans. The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2020. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value under the fair value option of $655.2 million at September 30, 2020. As of September 30, 2020 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer and Other ¹ Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,062,814 $ 968,875 $ 1,851,323 $ 806,436 $ 99,632 $ 7,789,080 Watchlist 577,399 265,714 94,401 6,972 709 945,195 Substandard 229,467 348,910 94,316 13,173 93 685,959 Doubtful 3,323 11,540 11,623 1,473 4 27,963 Loss — — — — — — Total $ 4,873,003 $ 1,595,039 $ 2,051,663 $ 828,054 $ 100,438 $ 9,448,197 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. The next three tables include additional disclosures previously required by ASC Topic 310 related to the Company's September 30, 2020 balances and activity for the fiscal year ended September 30, 2020 and September 30, 2019. The following table presents the Company’s impaired loans at September 30, 2020. This table excludes purchased credit impaired loans and loans measured at fair value under the fair value option. September 30, 2020 Recorded Investment Unpaid Principal Balance Related Allowance for Credit Losses Impaired loans: (dollars in thousands) With an allowance for credit losses recorded: Commercial real estate $ 111,121 $ 114,034 $ 25,087 Agriculture 53,052 55,145 8,151 Commercial non-real estate 39,821 47,571 7,822 Residential real estate 5,670 6,314 1,903 Consumer and other 98 109 30 Total impaired loans with an allowance for credit losses recorded 209,762 223,173 42,993 With no allowance for credit losses recorded: Commercial real estate 121,380 161,211 — Agriculture 308,734 332,272 — Commercial non-real estate 66,542 75,365 — Residential real estate 6,543 8,818 — Consumer and other — 108 — Total impaired loans with no allowance for credit losses recorded 503,199 577,774 — Total impaired loans $ 712,961 $ 800,947 $ 42,993 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 Fiscal Year Ended September 30, 2019 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 137,017 $ 8,528 $ 42,374 $ 2,339 Agriculture 355,719 22,927 223,146 13,093 Commercial non-real estate 89,152 7,745 28,196 1,791 Residential real estate 10,408 691 6,889 410 Consumer and other 138 9 231 20 Total $ 592,434 $ 39,900 $ 300,836 $ 17,653 The Company did not acquire any loans during the fiscal year ended September 30, 2021. Prior to October 1, 2020, the Company accounted for acquired impaired loans in accordance with ASC 310-30. The following table is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 September 30, 2019 (dollars in thousands) Balance, beginning of period $ 26,047 $ 34,973 Accretion (6,869) (9,202) Reclassification (to) from nonaccretable difference (3,790) 276 Balance, end of period $ 15,388 $ 26,047 Troubled Debt Restructurings Included in certain loan categories in the impaired loans are TDRs that were classified as impaired. Loans are designated as TDRs when the borrower is experiencing financial difficulty, and the Company agrees to concessions that are both significant and outside of market terms. Individual reserves included in the allowance for credit losses for TDRs were $14.3 million and $11.0 million at September 30, 2021 and 2020, respectively. There were $0.6 million and nominal commitments to lend additional funds to borrowers whose loans were modified in a TDR as of September 30, 2021 and September 30, 2020, respectively. The following table presents the amortized cost of the Company’s TDR balances as of September 30, 2021 and recorded value of TDR balances as of September 30, 2020. September 30, 2021 September 30, 2020 Performing Nonperforming Performing Nonperforming (dollars in thousands) Construction and development $ — $ 20 n/a ¹ n/a ¹ Owner-occupied CRE 3,322 14,555 n/a ¹ n/a ¹ Non-owner-occupied CRE 11,673 371 n/a ¹ n/a ¹ Multifamily residential real estate — — n/a ¹ n/a ¹ Total commercial real estate 14,995 14,946 $ 23,215 $ 11,913 Agriculture 29,996 9,275 2,976 45,971 Commercial non real estate 3,922 9,467 8,734 4,803 Residential real estate 191 48 277 74 Consumer and other — 13 3 31 Total $ 49,104 $ 33,749 $ 35,205 $ 62,792 1 Balance for this segment is included in total commercial real estate for September 30, 2020. 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 performing loans restructured in TDRs during the fiscal years ended September 30, 2021, 2020 and 2019. September 30, 2021 September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Construction and development — $ — $ — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Owner-occupied CRE 1 627 627 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Non-owner-occupied CRE 1 10,431 10,431 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Multifamily residential real estate — — — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Total commercial real estate 2 11,058 11,058 4 $ 17,586 $ 17,586 2 $ 15,466 $ 15,466 Agriculture 2 9,506 9,506 2 993 993 16 11,537 11,537 Commercial non-real estate 1 203 203 5 6,353 6,353 2 1,445 1,445 Residential real estate — — — 1 50 50 — — — Consumer and other — — — — — — 2 188 188 Total performing 5 $ 20,767 $ 20,767 12 $ 24,982 $ 24,982 22 $ 28,636 $ 28,636 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. The following table presents a summary of all nonperforming loans restructured in TDRs during the fiscal years ended September 30, 2021, 2020 and 2019. September 30, 2021 September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Construction and development — $ — $ — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Owner-occupied CRE 3 11,925 11,925 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Non-owner-occupied CRE 1 361 361 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Multifamily residential real estate — — — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Total commercial real estate 4 12,286 12,286 1 $ 2,216 $ 2,216 1 $ 882 $ 882 Agriculture 9 4,273 4,273 12 27,807 27,807 9 5,802 5,802 Commercial non-real estate 3 5,213 5,213 5 1,752 1,752 2 3,699 3,699 Residential real estate — — — — — — — — — Consumer and other — — — — — — — — — Total nonperforming 16 $ 21,772 $ 21,772 18 $ 31,775 $ 31,775 12 $ 10,383 $ 10,383 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. 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 fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Construction and development — $ — n/a ¹ n/a ¹ n/a ¹ $ — Owner-occupied CRE 1 10,577 n/a ¹ n/a ¹ n/a ¹ — Non-owner-occupied CRE 1 361 n/a ¹ n/a ¹ n/a ¹ — Multifamily residential real estate — — n/a ¹ n/a ¹ n/a ¹ — Total commercial real estate 2 10,938 1 $ — — $ — Agriculture 2 439 10 1,144 — — Commercial non-real estate 1 3,450 4 921 — — Residential real estate — — — — — — Consumer and other — — — — 1 — Total 5 $ 14,827 15 $ 2,065 1 $ — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. 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, $0.3 million and $0.0 million as of September 30, 2021, 2020 and 2019, respectively, loans removed from TDR status as they were restructured at market terms and are performing. Allowance for Credit Losses ("ACL") As previously mentioned in Note 2. New Accounting Standards, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, which resulted in a significant change to the Company's methodology for estimating the ACL. As a result of this adoption, the Company recorded a $177.3 million increase to the allowance as a cumulative-effect adjustment on October 1, 2020. The following table presents ACL activity by loan portfolio segment for the fiscal year ended September 30, 2021. Fiscal Year Ended September 30, 2021 Adjusted balance September 30, 2020 ¹ Adoption of ASU 2016-13, as amended Beginning balance, October 1, Charge-offs Recoveries Provision for (reversal of) credit losses on loans Ending balance, September 30, 2021 (dollars in thousands) Construction and development $ 7,012 $ 11,963 $ 18,975 $ (27) $ 424 $ 703 $ 20,075 Owner-occupied CRE 20,530 4,298 24,828 (2,965) 144 (3,784) 18,223 Non-owner-occupied CRE 50,965 98,986 149,951 (36,951) 457 (1,323) 112,134 Multifamily residential real estate 6,726 2,681 9,407 (377) — (4,152) 4,878 Total commercial real estate 85,233 117,928 203,161 (40,320) 1,025 (8,556) 155,310 Agriculture 27,018 24,360 51,378 (5,523) 2,869 (8,384) 40,340 Commercial non-real estate 27,599 32,938 60,537 (6,216) 1,155 (16,220) 39,256 Residential real estate 7,465 2,595 10,060 (389) 289 (828) 9,132 Consumer and other 2,572 (532) 2,040 (939) 499 400 2,000 Total $ 149,887 $ 177,289 $ 327,176 $ (53,387) $ 5,837 $ (33,588) $ 246,038 1 At September 30, 2020, the allowance balances were reclassified to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs. For additional information, see Note 2. The allowance for unfunded commitments was $1.3 million and $2.4 million at September 30, 2021 and September 30, 2020, respectively, and is recorded in accrued expenses and other liabilities on the consolidated balance sheets. The reversal of provision for unfunded commitments was $1.1 million for the fiscal year ended September 30, 2021 and is included in provision for credit losses in the consolidated statements of income. The provision for unfunded commitments was $1.9 million and none for the fiscal years ended September 30, 2020 and 2019, respectively, and is included in other noninterest expense in the consolidated statements of income. The following tables present ACL activity under the incurred loss model by loan portfolio segment for the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 Beginning balance, October 1, Charge-offs Recoveries Provision (Improvement) impairment of ASC 310-30 loans Ending balance, September 30, 2020 (dollars in thousands) Total commercial real estate $ 16,827 $ (5,181) $ 1,395 $ 71,474 $ (19) $ 84,496 Agriculture 30,819 (21,705) 2,189 15,980 (265) 27,018 Commercial non-real estate 17,567 (14,178) 1,018 23,192 — 27,599 Residential real estate 4,095 (615) 453 3,827 442 8,202 Consumer and other 1,466 (3,071) 416 3,731 30 2,572 Total $ 70,774 $ (44,750) $ 5,471 $ 118,204 $ 188 $ 149,887 Fiscal Year Ended September 30, 2019 Beginning balance, October 1, Charge-offs Recoveries Provision (Improvement) impairment of ASC 310-30 loans Ending balance, September 30, 2019 (dollars in thousands) Total commercial real estate $ 16,777 $ (1,511) $ 567 $ 1,514 $ (520) $ 16,827 Agriculture 28,121 (24,847) 385 27,160 — 30,819 Commercial non-real estate 13,610 (7,895) 392 11,431 29 17,567 Residential real estate 4,749 (998) 468 (56) (68) 4,095 Consumer and other 1,283 (1,810) 536 1,457 — 1,466 Total $ 64,540 $ (37,061) $ 2,348 $ 41,506 $ (559) $ 70,774 |
FDIC Indemnification Asset
FDIC Indemnification Asset | 12 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing of Financial Assets [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 was reimbursed for a portion of the losses incurred on covered assets under the non-commercial loss share agreement, which ended on June 4, 2020. As covered assets were 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 were reimbursable by the FDIC was recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduced or increased, respectively, the amount recoverable from the FDIC. The following table represents a summary of the activity related to the FDIC indemnification asset for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Balance, beginning of period $ — $ 1,079 $ 2,502 Amortization — (1,012) (1,386) Changes in expected reimbursements from FDIC for changes in expected credit losses — — (10) Changes in reimbursable expenses — — (41) Payments of covered losses to the FDIC — 47 14 Settlement upon expiration of loss-sharing arrangement — (114) — Balance, end of period $ — $ — $ 1,079 The loss claims filed were 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 ended June 4, 2020. The final claim certificate was filed in July 2020. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table presents the major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Land $ 33,549 $ 31,601 Buildings and building improvements 102,826 101,891 Furniture and equipment 17,201 24,522 Construction in progress 1,722 149 Total 155,298 158,163 Accumulated depreciation (37,320) (39,109) Premise and equipment, net $ 117,978 $ 119,054 Depreciation expense was $6.5 million, $7.5 million and $7.6 million for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. Included in the premises and equipment is $0.6 million of property held for sale at both September 30, 2021 and 2020. The Company measures assets held for sale at the lower of carrying amount or estimated fair value. There were no impairment charges recognized as of September 30, 2021 and 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2021 | |
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. Interest rate swaps include both traditional interest rate swaps and interest rate swaps which can be canceled by the customer on specified dates at no cost, typically referred to as swaptions. 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 September 30, 2021 and 2020. September 30, 2021 September 30, 2020 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps - FVO loan portfolio Financial institution counterparties $ 496,051 $ — $ (32,868) $ 592,241 $ — $ (62,587) Interest rate swaps - Other Financial institution counterparties 819,339 — (1,605) 641,189 — (1,672) Customer counterparties 819,339 49,790 (4,780) 641,189 83,533 — Interest rate caps Financial institution counterparties 1,122 5 — 20,538 2 — Customer counterparties 1,122 — (5) 20,538 — (2) Risk participation agreements 106,862 — (186) 80,681 — (32) Mortgage loan commitments 35,809 — (20) 92,278 — (96) Mortgage loan forward sale contracts 35,715 20 — 94,084 96 — Total $ 2,315,359 $ 49,815 $ (39,464) $ 2,182,738 $ 83,631 $ (64,389) 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 September 30, 2021 and 2020. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2021 Total Derivative Assets $ 49,815 $ (3,186) $ 12,598 $ 59,227 Total Derivative Liabilities ¹ (39,464) 3,186 31,472 (4,806) 1 There was an additional $23.1 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2021 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, 2020 Total Derivative Assets $ 83,631 $ (5,263) $ 20,012 $ 98,380 Total Derivative Liabilities ¹ (64,389) 5,263 59,028 (98) 1 There was an additional $22.9 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2020 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 counterparty 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. The Company enters 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 effect of derivatives on the consolidated statements of income for the fiscal years ended September 30, 2021, 2020 and 2019 was as follows. Amount of (Loss) Gain Recognized in Consolidated Statements of Income Fiscal Years Ended September 30, Derivatives not designated as hedging instruments: Location of (Loss) Gain Recognized in Consolidated Statements of Income 2021 2020 2019 (dollars in thousands) Interest rate swaps - FVO loan portfolio Derivative interest expense $ (12,727) $ (8,722) $ 619 Interest rate swaps - FVO loan portfolio Change in fair value of FVO loans and related derivatives 32,520 (29,777) (69,078) Interest rate swaps and other derivatives Other derivative income 6,500 60 5,015 Mortgage loan commitments Other derivative income 76 107 17 Mortgage loan forward sale contracts Other derivative income (76) (107) (17) |
The Fair Value Option For Certa
The Fair Value Option For Certain Loans | 12 Months Ended |
Sep. 30, 2021 | |
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 23 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 $12.8 million at September 30, 2021 and a net favorable difference of approximately $37.3 million at September 30, 2020. The total unpaid principal balance of these long-term loans was approximately $511.7 million and $617.9 million at September 30, 2021 and 2020, 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 5. As of September 30, 2021 and 2020, there were loans with a fair value of $12.9 million and $21.7 million, respectively, which were greater than 90 days past due or in nonaccrual status with an unpaid principal balance of $13.0 million and $26.2 million, respectively. Changes in fair value for items for which the fair value option has been elected were a decrease in fair value of $29.1 million for the fiscal year ended September 30, 2021, a decrease in fair value of $32.5 million for the fiscal year ended September 30, 2020 and an increase of $61.4 million for the fiscal year September 30, 2019. These changes in fair value are reported net of the related derivative activity in change in fair value of FVO loans and related derivatives within the consolidated statements of income. For long-term loans at September 30, 2021, 2020 and 2019, approximately $3.7 million, $59.4 million and $7.7 million, 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. |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table presents the Company's carrying amount of goodwill as of September 30, 2021 and September 30, 2020. September 30, September 30, (dollars in thousands) Balance, beginning of period $ — $ 739,023 Goodwill acquired during the period — 1,539 Goodwill impairment during the period — (740,562) Balance, end of period $ — $ — In accordance with ASC 350-20, the Company conducts a goodwill impairment test at least annually, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value below its carrying amount. The Company assesses relevant events and circumstances, including macroeconomic conditions, industry and market considerations, overall financial performance, changes in the composition or carrying amount of assets and liabilities, the market price of the Company's common stock and other relevant facts. There was no goodwill impairment charge recognized for the fiscal year ended September 30, 2021. In the second quarter of fiscal year 2020, the onset of the COVID-19 pandemic prompted the Company to assess qualitative and quantitative factors to determine whether it was more-likely-than-not the fair value of the Company was less than the carrying amount. The Company performed both a market capitalization approach and a discounted cash flow approach to determine the fair value of the Company. As a result of the analysis, the Company recognized a goodwill impairment charge of $740.6 million for the fiscal year ended September 30, 2020. There was no goodwill impairment charge recognized for the fiscal year ended September 30, 2019. |
Core Deposits and Other Intangi
Core Deposits and Other Intangibles | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and 2020. Core Deposit Intangible Brand Customer Relationships Intangible Other Total (dollars in thousands) As of September 30, 2021 Gross carrying amount $ 7,339 $ — $ 3,172 $ 538 $ 11,049 Accumulated amortization (5,019) — (488) (391) (5,898) Net intangible assets $ 2,320 $ — $ 2,684 $ 147 $ 5,151 As of September 30, 2020 Gross carrying amount $ 7,339 $ — $ 3,172 $ 538 $ 11,049 Accumulated amortization (4,316) — (244) (325) (4,885) Net intangible assets $ 3,023 $ — $ 2,928 $ 213 $ 6,164 Amortization expense of intangible assets was $1.0 million, $1.4 million and $1.5 million for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. No intangible asset impairment charge was recognized for the fiscal year ended September 30, 2021. In the second quarter of fiscal year 2020, the onset of the COVID-19 pandemic prompted the Company to assess its intangible assets for impairment. The Company believed the brand intangible asset was closely aligned with the goodwill of the Company, which was determined to be impaired as of March 31, 2020. As a result, the Company recognized an intangible asset impairment of $1.8 million for the fiscal year ended September 30, 2020. No intangible asset impairment charge was recognized for the fiscal year ended September 30, 2019. 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) 2022 $ 929 2023 831 2024 742 2025 683 2026 502 2027 and thereafter 1,464 Total $ 5,151 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases ASC Topic 842, Leases ("ASC 842"), became effective for the Company on October 1, 2019. ASC 842 requires a lease, whether classified as an operating lease or a financing lease, be accounted for as a right-of-use asset ("ROU asset") with a related lease liability recorded at the present value of the lease payments. The ROU asset represents the Company's right to use an underlying asset for the lease term and is included in other assets accrued expenses and other liabilities Subsequent to the adoption of ASC 842, the Company assesses contracts at inception to determine whether the contract is a lease or contains an embedded lease. A ROU asset and lease liability is recorded on the consolidated balance sheet for all leases, except those with an original lease term of twelve months or less. Most of these leases include one or more renewal options, and certain leases also include lessee termination options. As these renewal options are generally not considered reasonably certain of exercise, they are not included in the lease term. The Company leases certain branch and corporate offices, land and ATM facilities through operating leases with terms typically ranging from 1 to 15 years, with the longest term having a lease expiration of June 30, 2036. The Company had no significant financing leases as of September 30, 2021 and September 30, 2020. September 30, 2021 September 30, 2020 (dollars in thousands) ROU asset $ 19,748 $ 22,709 Total lease liability 20,824 24,114 Weighted average remaining lease term 6.10 years 6.29 years Weighted average discount rate ¹ 1.83 % 1.83 % 1 The Company uses its incremental borrowing rate to calculate the present value of lease payments when the interest rate implicit in the lease is not disclosed. Total lease expense incurred by the Company was $6.7 million and $7.1 million for the fiscal years ended September 30, 2021 and 2020, respectively, principally made up of contractual lease payments for operating leases. As of September 30, 2021, the Company had one operating lease that had not yet commenced with undiscounted cash flows of $2.1 million. This operating lease is anticipated to commence in January 2022. As of September 30, 2020, the Company had no operating leases that had not yet commenced. The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30, 2021 and 2020. ASU 842 was adopted on October 1, 2019, therefore no cash flow information is available for the fiscal year ended September 30, 2019. Fiscal Years Ended September 30, 2021 2020 (dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 5,838 $ 5,720 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 2,878 8,517 The following table presents a maturity analysis of the Company's operating lease liability as of September 30, 2021. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total undiscounted lease payments 22,158 Less: Amounts representing interest (1,334) Lease liability $ 20,824 |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits The following table presents the composition of deposits as of September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Noninterest-bearing demand $ 2,608,579 $ 2,586,743 Interest-bearing demand 7,967,316 7,139,058 Time deposits, greater than $250,000 146,962 352,913 Time deposits, less than or equal to $250,000 587,609 930,065 Total $ 11,310,466 $ 11,008,779 At September 30, 2021 and 2020, the Company had $76.1 million and $329.0 million, respectively, in brokered deposits. As a result of the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act in May 2018, most reciprocal deposits are no longer treated as brokered deposits and are now included with core commercial deposits. At September 30, 2021, the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2022. Fiscal year Amount (dollars in thousands) 2022 $ 575,318 2023 105,017 2024 25,362 2025 14,169 2026 13,286 2027 and thereafter 1,419 Total $ 734,571 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Sep. 30, 2021 | |
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 $102.6 million and $82.6 million and fair value of approximately $102.4 million and $84.7 million at September 30, 2021 and 2020, respectively. In most cases, in alignment with the repurchase agreements in place with customers, the Company over-collateralizes the repurchase 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 September 30, 2021 and 2020. September 30, 2021 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 $ 91,289 $ — $ — $ — $ 91,289 Total repurchase agreements $ 91,289 $ — $ — $ — $ 91,289 September 30, 2020 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 $ 65,506 $ — $ — $ — $ 65,506 Total repurchase agreements $ 65,506 $ — $ — $ — $ 65,506 |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 12 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings The following table presents the FHLB advances and other borrowings at September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Short-term borrowings: Fed funds purchased, matured in October 2020 $ — $ 75,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.76% to 2.88% and maturity dates from September 2022 to September 2024 collateralized by real estate loans, with various call dates at the option of the FHLB 120,000 120,000 Total FHLB advances and other borrowings $ 120,000 $ 195,000 As of September 30, 2021 and 2020, the Company had a borrowing capacity of $933.7 million and $947.7 million, respectively, with the FRB Discount Window. Principal balances of loans pledged to FRB Discount Window to collateralize the borrowing totaled $1.12 billion at September 30, 2021 and $1.17 billion at September 30, 2020. The Company has secured this line for contingency funding. As of September 30, 2021 and 2020, based its collateral pledged, the additional borrowing capacity of the Company with the FHLB was $1.66 billion and $2.03 billion, respectively. Principal balances of loans pledged to the FHLB to collateralize notes payable totaled $3.18 billion and $4.07 billion at September 30, 2021 and 2020, respectively. The Company purchased letters of credit from the FHLB to pledge as collateral on public deposits. The amount outstanding was zero and $75.0 million at September 30, 2021 and 2020, respectively. The Company had additional letters of credit from the FHLB of $10.2 million and $14.6 million at September 30, 2021 and 2020, respectively, for other purposes. As of September 30, 2021, FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) 2022 $ 30,000 2023 30,000 2024 60,000 2025 — 2026 — 2027 and thereafter — Total $ 120,000 |
Subordinated Debentures and Sub
Subordinated Debentures and Subordinated Notes Payable | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 have issued Company Obligated Mandatorily Redeemable Preferred Securities ("Preferred Securities"). These trusts are described herein. The sole assets of the trusts are junior subordinated deferrable interest debentures ("Debentures") issued by the Company, or assumed as part of the HF Financial and Sunstate Bank acquisitions, with interest, maturity, and distribution provisions similar in term to the respective Preferred Securities. Additionally, to the extent interest payments are deferred on the Debentures, payment on the Preferred Securities will be deferred for the same period. 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 September 30, 2021 and 2020, $74.0 million and $73.8 million, respectively, of Debentures, net of fair value adjustment, were eligible for treatment as Tier 1 capital. The Company caused to be issued 22,400 shares, $1,000 par value, of Preferred Securities of Great Western Statutory Trust IV on December 17, 2003, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 285 basis points. Interest Payment Dates are March 17, June 17, September 17 and December 17 of each year, beginning March 17, 2004 and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid distributions must be paid. The Debentures will be redeemed 30 years from the issuance date; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole, but not in part, at the Special Redemption Date, at a premium as defined by the Indenture if a "Special Event" occurs prior to December 17, 2008. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after December 17, 2008, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid distributions to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Proceeds from the issue were used for general corporate purposes. The Company caused to be issued 30,000 shares, $1,000 par value, of Preferred Securities of GWB Capital Trust VI on March 10, 2006, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 148 basis points. Interest Payment dates are December 15, March 15, June 15, and September 15 of each year, beginning June 15, 2006, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed March 15, 2036; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole, but not in part, at any Interest Payment Date, at a premium as defined by the Indenture if a "Special Event" occurs prior to March 15, 2007. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after March 15, 2011, subject to the Company receiving approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Proceeds from the issue were used for general corporate purposes including redemption of the 9.75% Preferred Securities of GWB Capital Trust II. The Company acquired the Sunstate Bancshares Trust II in the acquisition of Sunstate Bank. Sunstate Bancshares caused to be issued 2,000 shares, $1,000 par value, of Preferred Securities of Sunstate Bancshares Trust II on June 1, 2005, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 185 basis points. Interest Payment dates are March 15, June 15, September 15, and December 15 of each year, beginning September 15, 2005, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed June 15, 2035; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to June 15, 2010. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after June 15, 2010, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust III in the acquisition of HF Financial. HF Financial Corp. caused to be issued 5,000 shares, $1,000 par value, of Preferred Securities of HFB Trust III on December 19, 2002, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 335 basis points. Interest Payment dates are January 7, April 7, July 7, and October 7 of each year, beginning April 7, 2003, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed January 7, 2033; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to January 7, 2008. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after January 7, 2008, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust IV in the acquisition of HF Financial. HF Financial Corp. caused to be issued 7,000 shares, $1,000 par value, of Preferred Securities of HFB Trust IV on September 25, 2003, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 310 basis points. Interest Payment dates are January 8, April 8, July 8, and October 8 of each year, beginning January 8, 2004, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed October 8, 2033; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to October 8, 2008. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after October 8, 2008, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust V in the acquisition of HF Financial. HF Financial Corp. caused to be issued 10,000 shares, $1,000 par value, of Preferred Securities of HFB Trust V on December 7, 2006, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 183 basis points. Interest Payment dates are March 1, June 1, September 1, and December 1 of each year, beginning March 1, 2007, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed March 1, 2037; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to March 1, 2012. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after March 1, 2012, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. In the first quarter of fiscal year 2017, the Company redeemed 5,000 shares of HF Trust V Debentures under the first Supplemental Indenture dated May 13, 2016. The Company acquired the HFB Trust VI in the acquisition of HF Financial. HF Financial Corp. caused to be issued 2,000 shares, $1,000 par value, of Preferred Securities of HFB Trust VI on July 5, 2007, through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 165 basis points. Interest Payment dates are January 1, April 1, July 1, and October 1 of each year, beginning October 1, 2007, and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed October 1, 2037; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a "Special Event", at a premium as defined by the Indenture if a "Special Event" occurs prior to October 1, 2012. A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after October 1, 2012, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Relating to the trusts, the Company held as assets $2.5 million in common shares at September 30, 2021 and 2020, 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, whose eligibility as Tier 2 capital was reduced by 20% beginning in the quarter ended September 30, 2020, and whose eligibility will continue to reduce 20% on the anniversary date thereof each of the next four years, 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 upon certain events of bankruptcy, insolvency or reorganization. Proceeds from the private placement of subordinated notes repaid outstanding subordinated debt. The following table presents the subordinated debentures and subordinated notes payable at September 30, 2021 and 2020. September 30, 2021 September 30, 2020 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 (1,953) (2,088) Total junior subordinated debentures payable, net of fair value adjustment 73,967 73,832 Subordinated notes payable Fixed to floating rate effective August 2020, 3.15% plus 3 month LIBOR 35,000 35,000 Total subordinated debentures and subordinated notes payable $ 108,967 $ 108,832 1 Adjustment reflects the fair value adjustments related to the junior subordinated deferrable interest debentures assumed as part of the HF Financial acquisition. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes charged to operations consists of the following for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Currently paid or payable Federal $ 37,928 $ 18,511 $ 30,779 State 9,261 3,733 9,327 Total 47,189 22,244 40,106 Deferred tax expense (benefit) Federal 8,851 (39,563) 7,507 State 2,971 (8,191) 617 Total 11,822 (47,754) 8,124 Total provision for (benefit from) income taxes $ 59,011 $ (25,510) $ 48,230 The income tax provision differs from the amount of income tax determined by applying a U.S. federal income tax rate of 21.0% for fiscal years September 30, 2021, 2020 and 2019 to pretax income due to the following. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Income tax expense computed at the statutory rate $ 55,077 $ (148,327) $ 45,275 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 9,663 (3,521) 7,855 Tax exempt interest income (5,633) (5,515) (5,193) Tax impact of stock-based compensation plans 355 83 (91) Tax impact of goodwill impairment — 131,051 — Other (451) 719 384 Income tax expense, as reported $ 59,011 $ (25,510) $ 48,230 Net deferred tax assets (liabilities) consist of the following components at September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Deferred tax assets: Allowance for credit losses $ 59,864 $ 36,177 Compensation 5,587 3,547 Other real estate owned 66 3,067 Core deposit intangible and other fair value adjustments 1,939 2,554 Excess tax basis of loans acquired over carrying value 476 2,059 Other reserves 7,000 9,245 Goodwill and other intangibles 8,729 11,075 Lease liability 5,203 5,805 REIT income 1,917 — Net deferred loan fees 5,416 — Other 5,583 7,268 Total deferred tax assets 101,780 80,797 Deferred tax liabilities: Securities available for sale (1,647) (11,749) Premises and equipment (6,231) (7,167) Deferred REIT income — (8,522) Right of use asset (4,858) (5,399) Other (183) (251) Total deferred tax liabilities (12,919) (33,088) Net deferred tax assets $ 88,861 $ 47,709 At September 30, 2021 and 2020, the Company had an income tax receivable from the IRS of $0.2 million and $10.8 million, respectively, which is included in other assets on the consolidated balance sheets. The Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2017. The Bank's effective tax rate for the fiscal years ended September 30, 2021 and 2020 was 22.5% and 3.6%, respectively. Management has determined a valuation reserve is not required for the deferred tax assets as of September 30, 2021 and 2020 because it is more-likely-than-not these assets could be realized through carryback offsets to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income. Uncertain tax positions were not significant at September 30, 2021 or 2020. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 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 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
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 the Company's 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 and February 9, 2021, the Company's 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. For the fiscal years ended September 30, 2021, 2020 and 2019 stock compensation expense was $3.9 million, $5.0 million and $5.9 million respectively. Related income tax benefits recognized for the fiscal years ended September 30, 2021, 2020 and 2019 were $1.0 million, $1.2 million and $1.5 million, respectively. The following is a summary of the Plans’ restricted share and performance-based stock award activity as of September 30, 2021, 2020 and 2019. The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. September 30, 2021 September 30, 2020 September 30, 2019 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 249,180 $ 32.89 190,805 $ 37.20 163,287 $ 37.86 Granted 181,896 19.04 147,282 30.68 106,753 37.27 Vested (94,655) 33.33 (84,316) 38.60 (76,210) 38.64 Forfeited (4,389) 26.90 (4,591) 36.18 (3,025) 38.67 Canceled — — — — — — Restricted shares, end of period 332,032 $ 25.26 249,180 $ 32.89 190,805 $ 37.20 Vested, but not issuable at end of period 87,324 $ 29.32 62,992 $ 33.98 50,770 $ 33.88 Performance Shares Performance shares, beginning of fiscal year 175,740 $ 33.56 173,332 $ 38.50 175,196 $ 36.29 Granted 142,052 14.29 62,278 40.15 60,583 32.77 Vested (25,452) 41.07 (54,861) 39.43 (59,937) 30.79 Forfeited (5,243) 28.85 (5,009) 37.90 (2,510) 39.25 Canceled — — — — — — Performance shares, end of period 287,097 $ 24.10 175,740 $ 33.56 173,332 $ 38.50 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 5,612 $ 18.00 As of September 30, 2021, there was $5.1 million of unrecognized compensation cost related to non-vested restricted stock awards expected to be recognized over a period of 3.3 years. The fair value of the vested awards was $3.0 million, $0.9 million and $1.9 million at September 30, 2021, 2020 and 2019, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Factors that may significantly affect adequacy of net worth such as potentially volatile components of capital, qualitative factors or regulatory mandates are discussed in "Item 1A. Risk Factors". On January 1, 2015, the Company became subject to Basel III rules, which included transition provisions through January 1, 2019. The minimum capital level requirements applicable to the Company are: (i) a Tier 1 capital ratio of 6.0%; (ii) a total capital ratio of 8.0%; (iii) a Tier 1 leverage capital ratio of 4.0%; and (iv) a common equity Tier 1 capital ratio of 4.5%. The rules also established a "capital conservation buffer" of 2.5% above the minimum capital requirements, which must consist entirely of common equity Tier 1 capital and results in the following minimum ratios: (i) a Tier 1 capital ratio of 8.5%; (ii) a total capital ratio of 10.5%; and (iii) a common equity Tier 1 capital ratio of 7.0%. The capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and increased by that amount each year until fully implemented in January 2019. An institution is subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. The Company met all capital adequacy and net worth requirements to which they are subject as of September 30, 2021 and 2020. As of September 30, 2021, the most recent notification from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the most recent notification that management believes have changed the Bank's categories. As an approved mortgage seller, the Bank is required to maintain a minimum level of capital specified by the United States Department of Housing and Urban Development. At September 30, 2021 and 2020, the Bank met these requirements. Capital amounts and ratios are presented in the following table: Actual Minimum Capital Requirement Ratio ¹ To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2021 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,378,832 15.1 % $ 547,720 6.0 % N/A N/A Bank 1,377,944 15.1 % 547,585 6.0 % $ 730,113 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,491,639 16.3 % 730,293 8.0 % N/A N/A Bank 1,469,751 16.1 % 730,113 8.0 % 912,641 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,378,832 10.6 % 520,228 4.0 % N/A N/A Bank 1,377,944 10.6 % 520,272 4.0 % 650,341 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,304,865 14.3 % 410,790 4.5 % N/A N/A Bank 1,377,944 15.1 % 410,688 4.5 % 593,217 6.5 % As of September 30, 2020 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,195,453 11.8 % $ 609,080 6.0 % N/A N/A Bank 1,187,905 11.7 % 608,916 6.0 % $ 811,888 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,350,658 13.3 % 812,107 8.0 % N/A N/A Bank 1,315,077 13.0 % 811,888 8.0 % 1,014,860 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,195,453 9.4 % 511,248 4.0 % N/A N/A Bank 1,187,905 9.3 % 509,649 4.0 % 637,062 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,121,621 11.0 % 456,810 4.5 % N/A N/A Bank 1,187,905 11.7 % 456,687 4.5 % 659,659 6.5 % 1 Does not include capital conservation buffer of 2.5% at both September 30, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance-Sheet Risk The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. They involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. A summary of the Company’s commitments as of September 30, 2021 and 2020 is as follows. September 30, 2021 2020 (dollars in thousands) Commitments to extend credit $ 2,145,321 $ 2,138,138 Letters of credit 43,976 65,707 Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The credit and collateral policy for commitments and letters of credit is comparable to that for granting loans. Asset Sales The Bank regularly transfers financial assets as part of its mortgage banking activities. Transfers are recorded as sales when the criteria for surrender of control are met. The Bank has provided guarantees in connection with the sale of loans and has assumed a similar obligation in its acquisitions. The guarantees are generally in the form of asset buy back or make whole provisions that are triggered upon a credit event and remain in effect until the loans are collected. The maximum potential future payment related to these guarantees is not readily determinable because the Company’s obligation under these agreements depends on the occurrence of future events. There were $3.3 million of repurchased loans as of September 30, 2021 and 2020. Incurred losses related to these repurchased loans and guaranteed loans as of September 30, 2021, 2020 and 2019 are not significant. Financial Instruments with Concentration of Credit Risk by Geographic Location A substantial portion of the Company’s customers’ ability to honor their contracts is dependent on the economy in Nebraska, northern Missouri, northeastern Kansas, Iowa, southeastern Arizona, central Colorado, southeastern North Dakota, central Minnesota and South Dakota. Although the Company’s loan portfolio is diversified, there is a relationship in these regions between the agricultural economy and the economic performance of loans made to non-agricultural customers. The concentration of credit in the regional agricultural economy is taken into consideration by management in determining the allowance for loan and lease losses. Lease Commitments The Company leases several branch locations under terms of operating lease agreements expiring through June 30, 2036. The Company has the option to renew these leases for periods that range from 1 to 15 years. Total lease expense incurred by the Company for these leases was $6.7 million, $7.1 million and $5.4 million for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total $ 22,158 Contingencies From time to time the Company is a party to various litigation matters and subject to various regulatory matters that arise in the ordinary course of business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing litigation and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows. However, changes in circumstances or additional information could result in additional accruals or resolution of these matters in excess of established accruals, which could adversely affect the financial condition, results of operations or cash flows, potentially materially. As of September 30, 2021, the Company had advisory fee commitments related to the pending merger of $13.4 million. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions With Related Parties The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, executive officers, their immediate families, and affiliated companies in which they have 10% or more beneficial ownership (commonly referred to as related parties). Total loans committed to related parties were not significant at September 30, 2021 and 2020. There was no interest paid to related parties for each of the fiscal years ended September 30, 2021, 2020 and 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2021 | |
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 the following three levels of inputs that may be used to measure fair value: 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; and 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 September 30, 2021 and 2020. 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 the Company's 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 September 30, 2021 and 2020. Fair Value Level 1 Level 2 Level 3 ¹ (dollars in thousands) As of September 30, 2021 U.S. Treasury securities $ 98,787 $ 98,787 $ — $ — U.S. Agency securities 24,048 24,048 — — Mortgage-backed securities 2,135,261 — 2,135,261 — States and political subdivision securities 44,550 — 44,550 — Corporate debt securities 39,519 — 39,519 — Other 1,037 — 1,037 — Total securities available for sale $ 2,343,202 $ 122,835 $ 2,220,367 $ — Derivatives-assets $ 59,227 $ — $ 59,227 $ — Derivatives-liabilities 4,806 — 4,806 — Fair value loans 524,533 — 524,533 — Loan servicing rights 663 — — 663 As of September 30, 2020 U.S. Treasury securities $ 50,152 $ 50,152 $ — $ — U.S. Agency securities 25,060 25,060 — — Mortgage-backed securities 1,642,780 — 1,642,780 — States and political subdivision securities 55,580 — 51,783 3,797 Other 1,054 — 1,054 — Total securities available for sale $ 1,774,626 $ 75,212 $ 1,695,617 $ 3,797 Derivatives-assets $ 98,380 $ — $ 98,380 $ — Derivatives-liabilities 98 — 98 — Fair value loans 655,185 — 655,185 — Loan servicing rights 1,303 — — 1,303 The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Loan servicing rights Balance, beginning of period $ 1,303 $ 2,255 $ 3,087 Realized and unrealized loss ¹ (640) (952) (832) Balance, end of period $ 663 $ 1,303 $ 2,255 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 table presents 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 September 30, 2021 and 2020. Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2021 Other repossessed property $ 3,606 $ — $ — $ 3,606 Impaired loans 161,307 — — 161,307 Mortgage loans held for sale, at lower of cost or fair value 2,904 — 2,904 — Property held for sale 600 — — 600 As of September 30, 2020 Other repossessed property $ 17,991 $ — $ — $ 17,991 Impaired loans 669,968 — — 669,968 Mortgage loans held for sale, at lower of cost or fair value 12,371 — 12,371 — Property held for sale 600 — — 600 The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2021 were as follows. Fair Value of Assets / (Liabilities) at September 30, 2021 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 3,606 Appraisal value Collateral specific adjustment N/A N/A Impaired loans 161,307 Appraisal value Collateral specific adjustment N/A N/A Property held for sale 600 Appraisal value Collateral specific adjustment N/A N/A Disclosures about Fair Value of Financial Instruments 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 September 30, 2021 and September 30, 2020 are as follows. September 30, 2021 September 30, 2020 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 1,552,260 $ 1,552,260 $ 432,887 $ 432,887 Securities purchased under agreements to resell Level 1 104,339 104,339 — — Securities held to maturity Level 1 27,782 27,539 — — Securities held to maturity Level 2 336,519 333,623 — — Securities held to maturity Level 3 3,450 3,450 — — Total securities held to maturity 367,751 364,612 — — Loans, net, excluding fair valued loans, loans held for sale and impaired loans ¹ Level 3 7,496,309 7,538,968 8,738,617 8,768,314 Liabilities Time deposits Level 2 $ 734,571 $ 735,407 $ 1,282,978 $ 1,287,814 FHLB advances and other borrowings Level 2 120,000 126,229 195,000 204,715 Securities sold under repurchase agreements Level 2 91,289 91,289 65,506 65,506 Subordinated debentures and subordinated notes payable Level 2 108,967 100,739 108,832 96,424 1 Includes $23.6 million and $29.0 million of net deferred loan fees at September 30, 2021 and 2020, respectively, of which carrying value approximates fair value. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2021 | |
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 for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands, except per share data) Net income (loss) $ 203,258 $ (680,808) $ 167,365 Weighted average common shares outstanding 55,183,940 55,612,251 57,154,865 Dilutive effect of stock based compensation 259,969 — 102,196 Weighted average common shares outstanding for diluted earnings per share calculation 55,443,909 55,612,251 57,257,061 Basic earnings per share $ 3.68 $ (12.24) $ 2.93 Diluted earnings per share $ 3.67 $ (12.24) $ 2.92 The Company had no shares of unvested performance stock as of September 30, 2021 and 17,074 shares of unvested performance stock as of September 30, 2020 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 no shares of anti-dilutive stock awards outstanding as of September 30, 2021 and 132,526 shares of anti-dilutive stock awards outstanding as of September 30, 2020. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, Revenue from Contracts with 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 the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP and discussed elsewhere within Item 8. Financial Statements and Supplementary Data, "Note 1. Nature of Operations and Summary of Significant Accounting Policies". Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the 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. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Noninterest income Service charges and other fees $ 37,129 $ 37,741 $ 43,893 Wealth management fees 13,347 11,772 8,914 Other 3,017 2,733 3,045 Noninterest income from contracts with customers within the scope of ASC Topic 606 53,493 52,246 55,852 Noninterest income (loss) within the scope of other GAAP Topics ¹ 13,071 (52,229) 4,880 Total noninterest income $ 66,564 $ 17 $ 60,732 1 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. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements Parent company only financial information for Great Western Bancorp, Inc. is summarized as follows: Condensed Balance Sheets (Dollars in Thousands) September 30, 2021 2020 (dollars in thousands) Assets Cash and cash equivalents $ 28,614 $ 36,420 Investment in subsidiaries 1,274,568 1,229,227 Net deferred tax assets 1,354 1,395 Other assets 7,225 6,086 Total assets $ 1,311,761 $ 1,273,128 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,967 $ 108,832 Accrued expenses and other liabilities 1,315 1,363 Total liabilities 110,282 110,195 Stockholders’ equity Common stock 551 550 Additional paid-in capital 1,182,732 1,183,647 Retained earnings 13,170 (57,169) Accumulated other comprehensive income 5,026 35,905 Total stockholders’ equity 1,201,479 1,162,933 Total liabilities and stockholders’ equity $ 1,311,761 $ 1,273,128 Condensed Statements of Comprehensive Income (Dollars in Thousands) Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Income Dividends from subsidiary bank $ 2,757 $ 75,079 $ 148,128 Dividends on securities 4 2 19 Other 60 87 120 Net gain on sale of securities 248 — — Total income 3,069 75,168 148,267 Expenses Interest on subordinated debentures and subordinated notes payable 3,182 4,515 5,540 Salaries and employee benefits 3,868 5,295 6,288 Professional fees 1,198 1,291 1,035 Other 2,776 2,913 2,653 Total expense 11,024 14,014 15,516 Income before income tax and equity in undistributed net income of subsidiaries (7,955) 61,154 132,751 Income tax benefit (2,074) (1,114) (2,965) Income before equity in undistributed net income of subsidiaries (5,881) 62,268 135,716 Equity in undistributed net income of subsidiaries 209,139 (743,076) 31,649 Net income $ 203,258 $ (680,808) $ 167,365 Condensed Statements of Cash Flows (Dollars in Thousands) Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Operating Activities Net income $ 203,258 $ (680,808) $ 167,365 Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization 135 196 168 Stock-based compensation 3,494 3,705 4,582 Deferred income taxes 41 321 (227) Changes in: Other assets (1,139) (5,397) 1,367 Accrued interest and other liabilities (48) 223 268 Equity in undistributed net income of subsidiaries (209,139) 743,076 (31,649) Net cash (used in) provided by operating activities (3,398) 61,316 141,874 Financing Activities Common stock repurchased — (39,983) (94,351) Dividends paid (4,408) (42,456) (62,904) Net cash used in financing activities (4,408) (82,439) (157,255) Net decrease in cash and cash equivalents (7,806) (21,123) (15,381) Cash and cash equivalents, beginning of period 36,420 57,543 72,924 Cash and cash equivalents, end of period $ 28,614 $ 36,420 $ 57,543 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Segment Reporting | The "Segment Reporting" topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a regional bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized and does not allocate resources around discernible lines of business or geographies and prefers to work as an integrated unit to customize solutions for its customers, with business line and geographic emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment, which is consistent with the Company’s preparation of financial information that is evaluated regularly by management in deciding how to allocate resources and assess performance. |
Basis of Presentation | The accounting and reporting policies of the Company conform with GAAP, SEC rules and interpretive releases and prevailing practices within the banking industry. All significant income and expenses are recorded on the accrual basis. The accompanying consolidated financial statements include the accounts and results of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. |
Principles of Consolidation | The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The Company’s wholly-owned subsidiaries Great Western Statutory Trust IV, GWB Capital Trust VI, Sunstate Bancshares Trust II, HF Financial Capital Trust III, HF Financial Capital Trust IV, HF Financial Capital Trust V and HF Financial Capital Trust VI are VIEs for which the Company is not the primary beneficiary. Accordingly, the accounts of these trusts are not included on the Company’s consolidated financial statements. In addition, the Company also has a variable interest in an affordable housing limited partnership of which it is not the primary beneficiary. This entity is not included in the Company's consolidated financial statements. Certain previously reported amounts have been reclassified to conform to the current presentation. |
Use of Estimates | GAAP requires management to make estimates and assumptions that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Subsequent Events | The Company evaluated subsequent events through the date its consolidated financial statements were issued. Other than those described above, there were no other material events or transactions that would require recognition on the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Business Combinations | The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations ("ASC 805"). The Company recognizes the fair value of the assets acquired and liabilities assumed, immediately expenses transaction costs and accounts for restructuring plans separately from the business combination. There is no separate recognition of the acquired allowance for credit losses on the acquirer’s balance sheet as credit related factors are incorporated directly into the fair value of the loans recorded at the acquisition date. The excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired is recorded as goodwill. Alternatively, a bargain purchase gain is recorded equal to the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid. Results of operations of the acquired business are included on the consolidated statements of income from the effective date of acquisition. Fair values are subject to refinement for up to a year after the closing date of an acquisition as information relative to closing date fair values becomes available. Adjustments recorded to the acquired assets and liabilities are applied prospectively in accordance with ASU 2015-16. |
Cash and Cash Equivalents | For purposes of the consolidated statements of cash flows, management has defined cash and cash equivalents to include cash on hand, amounts due from banks (including cash items in process of clearing), and amounts held at other financial institutions with an initial maturity of 90 days or less. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell are accounted for as collateralized financing transactions with a receivable recorded on the consolidated balance sheet at the amounts at which the securities were acquired, plus accrued interest. Collateral requirements are continually monitored and additional collateral is received as required. Securities received from counterparties under agreements to resell are not recognized on the consolidated balance sheet unless the counterparty defaults. The securities received under reverse repurchase transactions are residential mortgage-backed securities. Reverse repurchase transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require additional collateral pledged if the counterparty's collateral value drops below specified collateral levels. |
Securities | Investment securities are accounted for according to their purpose and holding period. Debt securities held for resale are classified as trading. Trading securities are stated at fair value. Realized and unrealized gains and losses from sales and fair value adjustments of trading securities are included in other noninterest income on the consolidated statements of income. There were no trading securities held at September 30, 2021 and September 30, 2020. Debt securities for which the Company has the ability and positive intent to hold until maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost, which represents actual cost adjusted for premium amortization and discount accretion. All other securities are classified as available for sale as they may be sold prior to maturity in response to changes in the Company’s interest rate risk profile, funding needs, demand for collateralized deposits by public entities or other reasons. Available for sale securities are stated at fair value. For available for sale debt securities in an unrealized loss position, management first evaluates whether (1) the Company has the intent to sell a security; or (2) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in the consolidated income statement with a corresponding adjustment to the security's amortized cost basis. If neither criteria is met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Furthermore, securities issued by the U.S. Government or a U.S. Government sponsored enterprise which carry the explicit or implicit guarantee of the U.S. Government are considered "risk-free" and therefore no credit losses are assumed on those securities. If the assessment indicates a credit loss exists, the amortized cost basis is compared to the present value of cash flows expected to be collected from the security; if it is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded. Changes in the allowance for credit losses are recorded as a provision for (reversal of) credit losses in the consolidated income statement. If the assessment indicates a credit loss does not exist, the change in fair value is recorded as unrealized gains and losses, net of related taxes, and is included in stockholders’ equity as a component of accumulated other comprehensive income (loss). Equity securities are carried at fair value, with changes in fair value reported in the consolidated statements of income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment. Realized gains and losses are recorded in noninterest income on the consolidated statements of income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Transfer of debt securities from the available for sale category to the hold to maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the hold to maturity investment security. Premiums or discounts on investment securities are amortized or accreted as an adjustment of yield over the estimated life of the security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are also amortized or accreted over the estimated life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. |
Federal Home Loan Bank Stock | Investments in the FHLB stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible credit related impairment, and the cost basis of this investment is reduced by any declines in value determined to be credit related. FHLB stock is included in other assets on the consolidated balance sheets. |
Loans | Originated Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at amortized cost (i.e., outstanding principal balance, adjusted for charge-offs and any unamortized deferred fees or costs). Other fees not associated with originating a loan are recognized as fee income when earned. Interest income on loans is accrued daily on the outstanding balances. A loan is placed on nonaccrual status when management believes, after considering collection efforts and other factors, the borrower's condition is such that collection of interest is doubtful, which is generally 90 days past due. When loans are placed on nonaccrual status, accrual of interest is discontinued and interest receivable is reversed against interest income in the current period. Interest payments received thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest. For loans held for sale, loan fees charged or received on origination, net of certain direct loan origination costs, are recognized in income when the related loan is sold. For loans held for investment, loan fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company is generally amortizing these amounts over the contractual lives of the loans. Commitment fees are recognized as income when received. The Company makes commercial, agricultural, residential real estate, consumer and other loans to customers primarily in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Collateral held varies but includes accounts receivable, marketable securities, inventory, equipment and real estate. Personal guarantees of the borrower or related parties and government guarantees are also obtained for some loans, which reduces the Company’s risk of loss. Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. Loans held for sale include fixed rate single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans are carried at cost and sold within 45 days. These loans are sold with the mortgage servicing rights released. Under limited circumstances, buyers may have recourse to return a purchased loan to the Company. Recourse conditions may include early payment default, breach of representation or warranties, or documentation deficiencies. Fair value of loans held for sale is determined based on prevailing market prices for loans with similar characteristics, sale contract prices, or, for certain portfolios, discounted cash flow analysis. Declines in fair value below cost (and subsequent recoveries) are recognized in mortgage banking income, net. Deferred fees and costs related to these loans are not amortized but are recognized as part of the cost basis of the loan at the time it is sold. Gains or losses on sales are recognized upon delivery and included in mortgage banking income, net on the consolidated statements of income. Loans at Fair Value Under the Fair Value Option ("FVO loans") The Company has elected to measure certain long-term loans and written loan commitments at fair value to assist in managing interest rate risk for longer-term loans. Fair value loans are fixed-rate loans having original maturities of 5 years or greater (typically between 5 and 15 years) to our business and agri-business banking customers to assist them in facilitating their risk management strategies. The fair value option was elected upon the origination or acquisition of these loans and written loan commitments. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon closing. The Company has also entered into interest rate derivative contracts to convert these long term fixed rate loans to variable rates. These contracts do not quality for hedge accounting and instead these interest rate derivative instruments are recognized as other assets or other liabilities on the consolidated balance sheets and measured at fair value, with changes in fair value reported in change in fair value of FVO loans and related derivatives on the consolidated statements of income. Since each fixed rate loan is paired with an offsetting derivative contract, the impact to net income is minimized. When determined necessary, a credit mark is applied against the valuation of the asset that reflects the borrower's credit worthiness. Changes in the credit mark are included in change in fair value of FVO loans and related derivatives on the consolidated statements of income. Credit Risk Management The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s strategy for credit risk management includes well-defined, centralized credit policies, uniform underwriting criteria and ongoing risk monitoring and review processes for all credit exposures. The strategy also emphasizes diversification on a geographic, industry, loan class type, and customer level; regular credit examinations; and management reviews of loans exhibiting deterioration of credit quality. The credit risk management strategy also includes a credit risk assessment process that performs assessments of compliance with commercial and consumer credit policies, risk ratings, and other critical credit information. Loan decisions are documented with respect to the borrower’s business, purpose of the loan, evaluation of the repayment sources, and the associated risks, evaluation of collateral, covenants and monitoring requirements, and risk rating rationale. The Company assigns all non-consumer loans a credit quality risk rating. The Company implemented a more granular risk rating methodology as of October 1, 2020. See the table below for a summary of credit quality risk ratings at September 30, 2021. Prior to October 1, 2020, the Company assigned all non-consumer loans a credit quality risk rating. These ratings were Pass, Watch, Substandard, Doubtful and Loss. Loans with a Pass and Watch rating represented 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 were those where a well-defined weakness had been identified that may have put full-collection of contractual debt at risk. Doubtful loans were those where a well-defined weakness had been identified and a loss of contractual debt was probable. Credit Quality Credit Quality Indicators Pass Commercial loans within this category are not adversely rated, current as to principal and interest, and are otherwise in material compliance with the contractual terms of the loan agreement. Management believes there is a low likelihood of loss related to loans in this category. Special Mention Commercial loans within this category have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant an adverse classification. Substandard Commercial loans within this category are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans in this category are assigned a workout loan officer to closely monitor the relationship. Doubtful Commercial loans within this category are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Revolving lines of credit rated Substandard or Doubtful require a higher level of approval and are reviewed quarterly. Advances are allowed to support the continued operating needs of the borrower for their operation and may include, but not limited to, working capital needs to support inventory, accounts receivable, payroll, tax payments, utilities and other needs to operate the business. All non-consumer loan risk ratings are monitored by management and updated as deemed appropriate. The Company generally does not risk rate residential real estate or consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, delinquencies are monitored and standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. Troubled Debt Restructurings Loans modified under troubled debt restructurings involve granting a concession to a borrower who is experiencing financial difficulty. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection, which generally would not otherwise be considered. The Company's TDRs include performing and nonperforming TDRs, which consist of loans that continue to accrue interest at the loan's original interest rate when the Company expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include loans that are in a nonaccrual status and are no longer accruing interest, as the Company does not expect to collect the full amount of principal and interest owed from the borrower on these loans. At the time of modification (except for loans on nonaccrual status), a TDR is classified as nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the loan is moved to a performing status (performing TDR). If the Company does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the analysis of the allowance for credit losses. A TDR that has been renewed for a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a renewal is no longer considered a TDR. In March 2020, a statement was issued by our banking regulators titled "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until December 31, 2020. In December 2020, the Economic Aid to Hard Hit Small Businesses, Non-Profits, and Ventures Act was enacted, which extended the TDR provisions of the CARES Act to January 1, 2022. Accordingly, in appropriate circumstances we are offering short-term modifications made in response to COVID-19 to borrowers who are current. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Allowance for Credit Losses ("ACL") The Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, which uses the current expected credit loss model ("CECL") to determine the allowance for credit losses 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 measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and the net investments in leases recognized by a lessor in accordance with Topic 842 on leases. The CECL methodology requires recognition of lifetime expected credit losses that takes into consideration all relevant information, including historical losses, current conditions and reasonable and supportable forecasts of future operating conditions. Loans that do not share similar risk characteristics and are collateral dependent, primarily large loans on nonaccrual status and those which have undergone a TDR, are evaluated on an individual basis ("individual reserve"). The reserve related to these loans is calculated using the collateral available to repay the loan, most typically the liquidation value of the collateral (less selling costs, if applicable). The Company has chosen to continue to include small, less complex loans within the collective reserve for loans on nonaccrual or with TDR status. Loans that are not reserved for on an individual basis are measured on a collective, or pooled basis ("collective reserve"). Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. The historical loss experience of the pool is generally the starting point for estimating expected credit losses under the collective reserve methodology. The historical loss experience rate of the loan pool is applied to each loan within the segment over the contractual life of each loan, adjusted for estimated prepayments. Management then determines an appropriate macroeconomic forecast based on the expectation of future conditions, including but not limited to the unemployment rate, which is the most significant factor, gross domestic product and corporate bond spreads, and applies the forecast to models which estimate the change in loss expectations relative to the historical loss rates. These models have been implemented in accordance with the Company's Model Risk Management Policy. Additionally, using its more granular risk rating system, the Company evaluates if the current credit quality of the portfolio materially differs from the one observed over the historical loss period and applies adjustments to the allowance accordingly. Qualitative adjustments may also be made to expected losses based on current and future conditions that may not be fully captured in the modeling components above, such as but not limited to industry, geographic and borrower concentrations, loans servicing practices and changes in underwriting criteria as well as the impact of economic events that are not captured in the historical loss experience or modeled losses. ASU 2016-13 requires institutions to establish a supportable forecast and reversion period for forecasted operating conditions. Management determined a two-year forecast period would capture the majority of the impact associated with current economic conditions and is short enough to be supportable. Additionally, loss rate forecasts follow a straight-line reversion back to the historical loss rate over one year following the initial forecast period. The following table describes the Company’s eight loan portfolio pools, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. Loan Segment Composition Collateral Primary Source of Repayment Key Risk Characteristics Construction and development 1 Commercial and residential construction loans Secured by commercial and residential real estate Cash flows Industry and geography of borrower's business, purpose of the loan, repayment sources, borrower's capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Owner-occupied CRE Small and middle market businesses Secured by commercial real estate Non-owner-occupied CRE Multifamily residential real estate Agriculture Agri-business operating and real estate loans Secured by operating assets, agricultural real estate, and guarantees of owners Cash flows Geography of the borrower's operations, commodity type and prices and weather patterns, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Commercial non-real estate Small and middle market businesses and loans made to public sector Secured by business assets and guarantees of owners Cash flows Industry and geography of the borrower's business, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Residential real estate Residential mortgages and home equity loans and lines Secured by residential real estate Borrower's income Borrower's capacity and willingness to repay, unemployment rates and other economic factors, and customer repayment history Consumer and other Consumer loans and all other loan relationships that do not fit within categories above, including consumer and commercial credit cards and consumer deposit account overdrafts Secured by automobiles, unsecured 1 Residential real estate construction loans are included in the construction and development segment until construction is completed, after which the loan is moved to the residential real estate loan segment. Changes to the allowance for credit losses are made by charges to the provision for credit losses, which is reflected on the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans deemed to be uncollectible are charged off against the allowance for credit losses. Recoveries of amounts previously charged-off are credited to the allowance for credit losses. Prior to October 1, 2020, the allowance for credit losses was established based on an incurred loss model. Incurred loss estimates primarily were based on historical loss experience and portfolio mix. Incurred loss estimates also considered qualitative factors, which were not reflected in historical loss experience. Unfunded Commitments and Unfunded Commitments Reserve Unfunded residential mortgage loan commitments entered into in connection with mortgage loans to be held for sale are considered derivatives and are recorded at fair value and included in accrued expenses and other liabilities on the consolidated balance sheets with changes in fair value recorded in other interest income in the consolidated statements of income. All other unfunded loan commitments are generally related to providing credit facilities to customers and are not considered derivatives. The unfunded commitments reserve ("unfunded reserve") presents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. An unfunded reserve is not recognized for commitments unconditionally cancellable by the Company, which includes credit cards, warehouse lines of credit and other revolving lines which are deemed to be unconditionally cancellable and is recorded in accrued expenses and other liabilities on the consolidated balance sheet. Changes to the unfunded reserve are recognized in provision for credit losses in the consolidated statements of income. The unfunded reserve is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). Loss rates are estimated by utilizing the same loss rates calculated for the collective reserve of the allowance for credit losses. The Company's change in unfunded commitments reserve from the incurred loss methodology to the current expected credit loss methodology was immaterial as of the date of adoption and therefore no provision was recognized. Accrued Interest Receivable Upon adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, the Company has elected the following: • Accrued interest receivable balances are presented separately within the consolidated balance sheets, • Accrued interest receivable balances are excluded from amortized cost of financing receivables and related disclosure requirements, and • Uncollectible accrued interest receivable is written off by reversing interest income, generally upon becoming 90 days past due. |
FDIC Indemnification Asset and Clawback Liability | In conjunction with a FDIC assisted transaction of TierOne Bank in 2010, the Company entered into a loss share agreement with the FDIC covering certain single family residential mortgage loans with claim period that ended June 4, 2020. The agreement covered a portion of realized losses on loans, foreclosed real estate and certain other assets. Fair values of loans covered by the loss sharing agreement at the acquisition date were estimated based on projected cash flows available based on the expected probability of default, default timing and loss given default, the expected reimbursement rates (generally 80%) from the FDIC and other relevant terms of the loss sharing agreement. The initial fair value was established by discounting these expected cash flows with a market discount rate for instruments with like maturity and risk characteristics. The loss share assets were measured separately from the related loans and foreclosed real estate and recorded as an FDIC indemnification asset on the consolidated balance sheets because they were not contractually embedded in the loans and were not transferable with the loans should the Company have chosen to dispose of them. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses reduced the carrying amount of the loss share assets. Reductions to expected losses on covered assets, to the extent such reductions to expected losses were the result of an improvement to the actual or expected cash flows from the covered assets, also reduced the carrying amount of the loss share assets. The rate of accretion of the indemnification asset discount included in interest income slowed to mirror the accelerated accretion of the loan discount. Additional expected losses on covered assets, to the extent such expected losses resulted in the recognition of an allowance for loan and lease losses, increased the carrying amount of the loss share assets. A related increase in the value of the indemnification asset up to the amount covered by the FDIC was calculated based on the reimbursement rates from the FDIC and was included in other noninterest income. The corresponding loan accretion or amortization was recorded as a component of interest income on the consolidated statements of income. Although these assets were contractual receivables from the FDIC, there were no contractual interest rates. The Company recorded indemnification assets in other assets on the consolidated balance sheets which represented estimated future amounts recoverable from the FDIC. The indemnification asset was zero at September 30, 2021 and 2020. |
Premises and Equipment | Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Costs incurred for maintenance and repairs are expensed as incurred. The range of estimated useful lives for buildings and building improvements are 10 to 40 years and 3 to 10 years for furniture and equipment. |
Other Repossessed Property | Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Income and expenses from operations of repossessed property are included in noninterest expense. |
Long-lived Asset Impairment | The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s carrying value is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of the long-lived asset exceeds its fair value. There was no long-lived asset impairment recognized during the fiscal year ended September 30, 2021. Other than the impairment of goodwill and certain intangible assets discussed in the subsequent sections, there was |
Goodwill | Goodwill represented the excess purchase price over the fair value of identifiable net assets of acquired companies. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets , the Company conducted a goodwill impairment test at least annually, or more frequently as events occurred or circumstances changed that more-likely-than-not reduced the fair value below its carrying amount. In accordance with ASC 350-20, the Company assessed qualitative factors to determine whether it was more-likely-than-not the fair value of the reporting unit was less than its carrying amount. If the Company concluded based on the qualitative assessment that goodwill may be impaired, a quantitative one-step impairment test was then applied. An impairment loss was recognized for any excess of carrying value over fair value of the goodwill. Subsequent increases in goodwill are not recognized in the consolidated financial statements. There was no goodwill impairment charge recognized for the fiscal year ended September 30, 2021. |
Core Deposits and Other Intangibles | Intangible assets consist of core deposits, brand intangible, customer relationships, and other intangibles. Core deposits represent the identifiable intangible value assigned to core deposit bases arising from acquired companies. Brand intangible represents the value associated with the Bank charter. Customer relationships intangible represents the identifiable intangible value assigned to customer relationships arising from acquired companies. Other intangibles represent contractual franchise arrangements under which the franchiser grants the franchisee the right to perform certain functions within a designated geographical area. Core deposits and other intangibles are recorded in other assets on the consolidated balance sheets. The methods and lives used to amortize intangible assets are as follows. Intangible Method Years Core deposit Straight-line or effective yield 10 Customer relationships Straight-line 13 Other intangibles Straight-line 1.25 - 9.33 |
Bank Owned Life Insurance | BOLI represents life insurance policies on the lives of certain Company officers or former officers for which the Company is the beneficiary. The carrying amount of bank owned life insurance consists of the initial premium paid plus increases in cash value less the carrying amount associated with any death benefits received. Death benefits paid in excess of the applicable carrying amount are recognized as income, which is exempt from income taxes. |
Loan Servicing Rights | The loan servicing rights asset recognized as part of the HF Financial acquisition was initially recorded at fair value. These servicing rights have subsequently been accounted for using the lower of cost or fair value method. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income using key assumptions such as prepayment speeds and discount rate. The asset is amortized into mortgage banking income, net on the consolidated statements of income in proportion to and over the period of estimated net servicing income. Loan servicing rights are recorded in other assets on the consolidated balance sheets. Mortgage banking income and related fees are recognized when earned as the Company services mortgage loans for others. Mortgage banking income also includes gains and losses on sales of mortgage loans to other financial institutions or government agencies which are recognized as each sales transaction occurs. |
Derivatives | The Company maintains an overall interest rate risk management strategy that permits the use of derivative instruments to modify exposure to interest rate risk. The Company enters into interest rate swap contracts to offset the interest rate risk associated with borrowers who lock in long-term fixed rates (greater than or equal to 5 years to maturity) through a fixed rate loan. Generally, under these swaps, the Company agrees with various swap counterparties to exchange the difference between fixed-rate and floating-rate interest amounts based upon notional principal amounts. These contracts do not qualify for hedge accounting. These interest rate derivative instruments are recognized as other assets or other liabilities on the consolidated balance sheets and measured at fair value, with changes in fair value reported in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. Since each fixed rate loan is paired with an offsetting derivative contract, the impact to net income is minimized. The Company also has back-to-back swaps with loan customers where the Company enters into an interest rate swap with loan customers to provide a facility to mitigate the interest rate risk associated with offering a fixed rate and simultaneously enters into a swap with an outside third party that is matched in exact offsetting terms. The back-to-back swaps are recorded at fair value and recognized as other assets or other liabilities, depending on the rights or obligations under the contract, on the consolidated balance sheet, with changes in fair value reported in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. The Company enters 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. In addition, the Company enters into forward interest rate lock commitments on mortgage loans to be held for sale, which are commitments to originate loans whereby the interest rate on the loan is determined prior to funding. The Company also has corresponding forward sales contracts related to these interest rate lock commitments. Both the mortgage loan commitments and the related sales contracts are considered derivatives and are recorded at fair value and included in other assets or other liabilities on the consolidated balance sheets with changes in fair value offsetting each other in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. |
Stock Based Compensation | Restricted and performance-based stock units/awards are classified as equity awards and accounted for under the treasury stock method. Compensation expense for non-vested stock units/awards is based on the fair value of the award on the measurement date, which, for the Company, is the date of the grant and is recognized ratably over the vesting or performance period of the award. The fair value of non-vested stock units/awards is generally the market price of the Company's stock on the date of grant. The Company accounts for forfeitures on an actual basis. |
Income Taxes | Income tax expense includes two components: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over income. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Tax benefits related to uncertain tax positions are recognized if it is more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term "more-likely-than-not" means a likelihood of more than 50 percent; the terms "examined" and "upon examination" also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. |
Transfers of Financial Assets | Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company-put presumptively beyond reach of the Company and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Securities sold under agreements to repurchase are accounted for as collateralized financing transactions and are recorded at amounts at which the securities were financed, plus accrued interest. |
Comprehensive Income | Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. |
New Accounting Pronouncements | Accounting Standards Adopted in Fiscal Year 2021 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, which address recording of estimated lifetime credit losses on loans, including funded and unfunded commitments, and other financial instruments held by financial institutions and other organizations. ASU 2016-13, as amended, requires institutions to measure all expected credit losses related to financial assets measured at amortized cost 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 CECL model. ASU 2016-13, as amended, 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. The measurement of expected losses under CECL is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held to maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit and other similar instruments). In addition, CECL requires debt securities available for sale with an unrealized loss to be recognized as allowance for credit loss rather than as a write-down of the securities amortized cost basis when management intends to sell or believes that it is not more-likely-than-not that they will be required to sell the securities prior to recovery of the securities amortized cost to be recognized as allowance for credit loss rather than as a write-down of the securities amortized cost basis. The CECL standard does not apply to the loan portfolio accounted for using the fair value option. The Company identified eight loan portfolio pools for which a model has been established to estimate credit losses. The historical data sets of these pools were identified, populated and validated. Each segment contains loans which have similar risk characteristics. Not unlike the incurred loss model, each segment is split into loans that are individually assessed and those that are collectively assessed. The Company adopted the standard on October 1, 2020, and applied the standard's provisions under the modified retrospective approach. Upon adoption of the standard, the Company recorded a $177.3 million increase to the ACL, of which $1.5 million related to the transfer of discounts on previously acquired loans and $175.8 million related to changes from the incurred loss model to the CECL model, which resulted in a cumulative effect adjustment decrease of $132.9 million (after-tax) to retained earnings. The tax effect resulted in a $42.9 million increase in deferred tax assets. In addition, the Company has elected the 5 year CECL transition for regulatory capital ratios, resulting in an add-back of $129.5 million to common equity tier 1 capital in the first fiscal quarter 2021. The following table presents the composition of loans and allowance by portfolio segment as of September 30, 2020, as adjusted at September 30, 2020 and October 1, 2020. Reported Balance September 30, Reclassifications ¹ Unamortized Discounts, Unearned Net Deferred Fees and Net Loans in Process Included in Amortized Cost ² Adjusted Balance September 30, Adoption of ASU 2016-13, as amended ³ Adjusted Balance October 1, 2020 (dollars in thousands) Loans: Construction and development n/a ⁴ $ 512,539 $ (2,895) $ 509,644 $ — $ 509,644 Owner-occupied CRE n/a ⁴ 1,420,061 (2,667) 1,417,394 36 1,417,430 Non-owner-occupied CRE n/a ⁴ 2,902,612 (8,232) 2,894,380 1,497 2,895,877 Multifamily residential real estate n/a ⁴ 536,828 (2,845) 533,983 (8) 533,975 Total commercial real estate $ 5,274,941 (5,274,941) — — — — Agriculture 1,724,350 — (1,654) 1,722,696 55 1,722,751 Commercial non-real estate 2,181,656 — (16,618) 2,165,038 (85) 2,164,953 Residential real estate 830,102 (97,099) (2,191) 730,812 23 730,835 Consumer and other — 100,553 1,642 102,195 (20) 102,175 Consumer 63,206 (63,206) — — — — Other 37,347 (37,347) — — — — Ending balance 10,111,602 — (35,460) 10,076,142 1,498 10,077,640 Less: Unamortized discount (8,215) — 8,215 — — — Unearned net deferred fees and costs and net loans in process (27,245) — 27,245 — — — Total $ 10,076,142 $ — $ — $ 10,076,142 $ 1,498 $ 10,077,640 Allowance: Construction and development n/a ⁴ $ (7,012) $ — $ (7,012) $ (11,963) $ (18,975) Owner-occupied CRE n/a ⁴ (20,530) — (20,530) (4,298) (24,828) Non-owner-occupied CRE n/a ⁴ (50,965) — (50,965) (98,986) (149,951) Multifamily residential real estate n/a ⁴ (6,726) — (6,726) (2,681) (9,407) Total commercial real estate $ (84,496) 84,496 — — — — Agriculture (27,018) — — (27,018) (24,360) (51,378) Commercial non-real estate (27,599) — — (27,599) (32,938) (60,537) Residential real estate (8,202) 737 — (7,465) (2,595) (10,060) Consumer and other (2,572) — — (2,572) 532 (2,040) Total $ (149,887) $ — $ — $ (149,887) $ (177,289) $ (327,176) 1 Reclassifications made from reported loan and related allowance segments to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, to estimate credit losses. 2 Unamortized discount on acquired loans, unearned net deferred fees and costs and net loans in process to related were assigned to appropriate loan portfolio segment to present loan categories at amortized cost. 3 Discounts on previously acquired loans and Day 1 impact of adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, were transferred to allowance for credit losses as a part of CECL adoption. 4 Balance for this segment is included in total commercial real estate for September 30, 2020. The Company did not record an allowance for available for sale securities upon adoption as the investment portfolio consisted primarily of debt securities explicitly or implicitly backed by the U.S. Government for which expected credit loss is zero. We adopted the CECL standard using the prospective transition approach for financial assets purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, we did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On October 1, 2020, the Company determined $1.5 million of existing discounts on PCD loans was related to credit factors and was reclassified to the ACL. The remaining noncredit discount of $6.7 million was determined to be related to noncredit factors and will be accreted into interest income on a level-yield method over the remaining life of the loans. For additional information, see "Note 1. Nature of Operations and Summary of Significant Policies", "Note 4. Securities Available for Sale", and "Note 5. Loans and Allowance for Credit Losses." 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 eliminated, added and modified certain disclosure requirements for fair value measurements. Among the changes, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The Company adopted the standard on October 1, 2020. The adoption of this guidance did not have a material impact to the consolidated financial statements. Accounting Standards Not Yet Adopted in Fiscal Year 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements and does not plan early adoption. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 , which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not expect adoption to have a material impact on the consolidated financial statements and does not plan early adoption. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. As of September 30, 2021 the Company accounted for all of their interest rate swaps and other derivatives using the Fair Value Option and did not have any interest rate swaps or other derivatives identified as cash flow hedges. As such the Company believes his accounting pronouncement will have a minimal impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments also optionally apply to all entities that designate receive-variable rate, pay-variable-rate cross-currency interest rate swaps as hedging instruments in net investment hedges that are modified as a result of reference rate reform. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 has not had, and is not expected to have, a material impact on the Company’s consolidated financial statements. In July 2021, the FASB issues ASU 2021-05, Leases (Topic 842) Lessors - Certain Leases with Variable Lease Payments , which updates guidance in Topic 842, to restore long-standing accounting practice for certain sales-type leases with variable payments. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company does not expect adoption of the new guidance to have a significant impact on our financial statements. |
Revenue Recognition | The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, Revenue from Contracts with 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 the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP and discussed elsewhere within Item 8. Financial Statements and Supplementary Data, "Note 1. Nature of Operations and Summary of Significant Accounting Policies". Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the 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. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Composition of loan portfolio by internal risk rating | See the table below for a summary of credit quality risk ratings at September 30, 2021. Prior to October 1, 2020, the Company assigned all non-consumer loans a credit quality risk rating. These ratings were Pass, Watch, Substandard, Doubtful and Loss. Loans with a Pass and Watch rating represented 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 were those where a well-defined weakness had been identified that may have put full-collection of contractual debt at risk. Doubtful loans were those where a well-defined weakness had been identified and a loss of contractual debt was probable. Credit Quality Credit Quality Indicators Pass Commercial loans within this category are not adversely rated, current as to principal and interest, and are otherwise in material compliance with the contractual terms of the loan agreement. Management believes there is a low likelihood of loss related to loans in this category. Special Mention Commercial loans within this category have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant an adverse classification. Substandard Commercial loans within this category are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans in this category are assigned a workout loan officer to closely monitor the relationship. Doubtful Commercial loans within this category are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. This table presents the loans based on credit quality, loan segment and year of origination at amortized cost and excludes loans measured at fair value under the fair value option of $524.5 million at September 30, 2021. Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Construction and development Pass $ 181,518 $ 63,253 $ 64,501 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 383,868 Special Mention 2,543 — 195 — — — — — 2,738 Substandard 6,171 — 1,935 — — — — — 8,106 Doubtful — — — — — — — — — Total construction and development $ 190,232 $ 63,253 $ 66,631 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 394,712 Owner-occupied CRE Pass $ 352,292 $ 341,767 $ 147,407 $ 91,080 $ 103,741 $ 114,949 $ 46,110 $ — $ 1,197,346 Special Mention 7,866 1,533 4,297 5,749 2,703 1,113 90 — 23,351 Substandard 7,504 3,323 2,246 11,040 11,083 6,021 74 — 41,291 Doubtful — — 1,967 — 1,967 — — — 3,934 Total owner-occupied CRE $ 367,662 $ 346,623 $ 155,917 $ 107,869 $ 119,494 $ 122,083 $ 46,274 $ — $ 1,265,922 Non-owner-occupied CRE Pass $ 310,329 $ 314,159 $ 245,293 $ 252,507 $ 211,459 $ 199,345 $ 34,666 $ — $ 1,567,758 Special Mention 24,487 28,225 47,108 65,763 23,115 13,597 — — 202,295 Substandard 77,924 4,000 31,510 32,282 18,692 7,989 24,174 — 196,571 Doubtful 361 — — — — — — — 361 Total non-owner-occupied CRE $ 413,101 $ 346,384 $ 323,911 $ 350,552 $ 253,266 $ 220,931 $ 58,840 $ — $ 1,966,985 Multifamily residential real estate Pass $ 228,989 $ 95,450 $ 112,945 $ 56,312 $ 5,320 $ 28,708 $ 1,215 $ — $ 528,939 Special Mention — — — — 31 239 — — 270 Substandard — 494 — 806 — 313 — — 1,613 Doubtful — 6,788 — — — — — — 6,788 Total multifamily residential real estate $ 228,989 $ 102,732 $ 112,945 $ 57,118 $ 5,351 $ 29,260 $ 1,215 $ — $ 537,610 Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Total commercial real estate Pass $ 1,073,128 $ 814,629 $ 570,146 $ 408,598 $ 321,218 $ 343,294 $ 146,898 $ — $ 3,677,911 Special Mention 34,896 29,758 51,600 71,512 25,849 14,949 90 — 228,654 Substandard 91,599 7,817 35,691 44,128 29,775 14,323 24,248 — 247,581 Doubtful 361 6,788 1,967 — 1,967 — — — 11,083 Total commercial real estate $ 1,199,984 $ 858,992 $ 659,404 $ 524,238 $ 378,809 $ 372,566 $ 171,236 $ — $ 4,165,229 Agriculture Pass $ 231,671 $ 130,681 $ 68,677 $ 55,087 $ 50,028 $ 17,559 $ 453,992 $ — $ 1,007,695 Special Mention 23,159 10,736 3,404 16,389 4,825 3,300 26,554 — 88,367 Substandard 29,537 10,545 12,574 35,213 35,401 4,246 85,750 — 213,266 Doubtful 1,748 — 641 19,277 883 — 344 — 22,893 Total agriculture $ 286,115 $ 151,962 $ 85,296 $ 125,966 $ 91,137 $ 25,105 $ 566,640 $ — $ 1,332,221 Commercial non-real estate Pass $ 388,893 $ 163,792 $ 165,759 $ 36,469 $ 25,612 $ 28,525 $ 531,277 $ — $ 1,340,327 Special Mention 318 611 2,622 1,137 2,417 821 16,259 — 24,185 Substandard 22,070 6,294 1,164 6,814 62 1,048 18,967 — 56,419 Doubtful — — 43 — — 3,955 434 — 4,432 Total commercial non-real estate $ 411,281 $ 170,697 $ 169,588 $ 44,420 $ 28,091 $ 34,349 $ 566,937 $ — $ 1,425,363 Residential real estate ¹ Pass $ 153,505 $ 163,337 $ 52,833 $ 36,323 $ 21,777 $ 87,246 $ 102,039 $ 271 $ 617,331 Special Mention 754 178 1,013 256 19 240 543 — 3,003 Substandard 36 444 821 771 485 4,364 843 — 7,764 Doubtful — — — — — — — — — Total residential real estate $ 154,295 $ 163,959 $ 54,667 $ 37,350 $ 22,281 $ 91,850 $ 103,425 $ 271 $ 628,098 Consumer and other ¹ Pass $ 26,157 $ 10,371 $ 15,814 $ 1,532 $ 542 $ 571 $ 54,588 $ — $ 109,575 Special Mention — — — — — — — — — Substandard — 5 8 8 — — 13 — 34 Doubtful — — — — — — — — — Total consumer and other $ 26,157 $ 10,376 $ 15,822 $ 1,540 $ 542 $ 571 $ 54,601 $ — $ 109,609 Total loans Pass $ 1,873,354 $ 1,282,810 $ 873,229 $ 538,009 $ 419,177 $ 477,195 $ 1,288,794 $ 271 $ 6,752,839 Special Mention 59,127 41,283 58,639 89,294 33,110 19,310 43,446 — 344,209 Substandard 143,242 25,105 50,258 86,934 65,723 23,981 129,821 — 525,064 Doubtful 2,109 6,788 2,651 19,277 2,850 3,955 778 — 38,408 Total loans $ 2,077,832 $ 1,355,986 $ 984,777 $ 733,514 $ 520,860 $ 524,441 $ 1,462,839 $ 271 $ 7,660,520 1 The Company generally does not risk rate residential real estate or consumer and other 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 and other loans. The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2020. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value under the fair value option of $655.2 million at September 30, 2020. As of September 30, 2020 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer and Other ¹ Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,062,814 $ 968,875 $ 1,851,323 $ 806,436 $ 99,632 $ 7,789,080 Watchlist 577,399 265,714 94,401 6,972 709 945,195 Substandard 229,467 348,910 94,316 13,173 93 685,959 Doubtful 3,323 11,540 11,623 1,473 4 27,963 Loss — — — — — — Total $ 4,873,003 $ 1,595,039 $ 2,051,663 $ 828,054 $ 100,438 $ 9,448,197 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. |
Summary of net loans receivable | The following table describes the Company’s eight loan portfolio pools, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. Loan Segment Composition Collateral Primary Source of Repayment Key Risk Characteristics Construction and development 1 Commercial and residential construction loans Secured by commercial and residential real estate Cash flows Industry and geography of borrower's business, purpose of the loan, repayment sources, borrower's capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Owner-occupied CRE Small and middle market businesses Secured by commercial real estate Non-owner-occupied CRE Multifamily residential real estate Agriculture Agri-business operating and real estate loans Secured by operating assets, agricultural real estate, and guarantees of owners Cash flows Geography of the borrower's operations, commodity type and prices and weather patterns, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Commercial non-real estate Small and middle market businesses and loans made to public sector Secured by business assets and guarantees of owners Cash flows Industry and geography of the borrower's business, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Residential real estate Residential mortgages and home equity loans and lines Secured by residential real estate Borrower's income Borrower's capacity and willingness to repay, unemployment rates and other economic factors, and customer repayment history Consumer and other Consumer loans and all other loan relationships that do not fit within categories above, including consumer and commercial credit cards and consumer deposit account overdrafts Secured by automobiles, unsecured 1 Residential real estate construction loans are included in the construction and development segment until construction is completed, after which the loan is moved to the residential real estate loan segment. The following table presents the composition of loans at amortized cost as of September 30, 2021 and 2020. September 30, 2021 September 30, 2020 Total Loans Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost Total Loans ² Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost (dollars in thousands) Construction and development $ 394,712 $ — $ — $ 394,712 $ 509,644 $ — $ — $ 509,644 Owner-occupied CRE 1,357,715 91,793 54,133 1,211,789 1,417,394 109,097 48,468 1,259,829 Non-owner-occupied CRE 2,191,848 224,863 21,072 1,945,913 2,894,380 283,266 27,402 2,583,712 Multifamily residential real estate 539,063 1,453 — 537,610 533,983 3,847 — 530,136 Total commercial real estate 4,483,338 318,109 75,205 4,090,024 5,355,401 396,210 75,870 4,883,321 Agriculture 1,428,614 96,393 19,667 1,312,554 1,722,696 129,041 42,353 1,551,302 Commercial non-real estate 1,535,394 110,031 239,850 1,185,513 2,165,038 129,934 744,371 1,290,733 Residential real estate ³ 628,098 — 271 627,827 730,812 — 290 730,522 Consumer and other ⁴ 109,609 — — 109,609 102,195 — — 102,195 Total $ 8,185,053 $ 524,533 $ 334,993 $ 7,325,527 $ 10,076,142 $ 655,185 $ 862,884 $ 8,558,073 1 Includes loans guaranteed by agencies of the U.S. government. 2 As a part of the adoption of CECL, loan pools are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, and unearned net deferred fees and costs. For additional information on September 30, 2020 loan segment balances, see Note 2. 3 Includes residential real estate loans held for sale of $2.9 million and $12.4 million at September 30, 2021 and September 30, 2020, respectively, recorded at the lower of cost or fair value. 4 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts and loans in process. |
Schedule of amortization methods used and useful lives | The methods and lives used to amortize intangible assets are as follows. Intangible Method Years Core deposit Straight-line or effective yield 10 Customer relationships Straight-line 13 Other intangibles Straight-line 1.25 - 9.33 |
New Accounting Standards (Table
New Accounting Standards (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | The following table presents the composition of loans and allowance by portfolio segment as of September 30, 2020, as adjusted at September 30, 2020 and October 1, 2020. Reported Balance September 30, Reclassifications ¹ Unamortized Discounts, Unearned Net Deferred Fees and Net Loans in Process Included in Amortized Cost ² Adjusted Balance September 30, Adoption of ASU 2016-13, as amended ³ Adjusted Balance October 1, 2020 (dollars in thousands) Loans: Construction and development n/a ⁴ $ 512,539 $ (2,895) $ 509,644 $ — $ 509,644 Owner-occupied CRE n/a ⁴ 1,420,061 (2,667) 1,417,394 36 1,417,430 Non-owner-occupied CRE n/a ⁴ 2,902,612 (8,232) 2,894,380 1,497 2,895,877 Multifamily residential real estate n/a ⁴ 536,828 (2,845) 533,983 (8) 533,975 Total commercial real estate $ 5,274,941 (5,274,941) — — — — Agriculture 1,724,350 — (1,654) 1,722,696 55 1,722,751 Commercial non-real estate 2,181,656 — (16,618) 2,165,038 (85) 2,164,953 Residential real estate 830,102 (97,099) (2,191) 730,812 23 730,835 Consumer and other — 100,553 1,642 102,195 (20) 102,175 Consumer 63,206 (63,206) — — — — Other 37,347 (37,347) — — — — Ending balance 10,111,602 — (35,460) 10,076,142 1,498 10,077,640 Less: Unamortized discount (8,215) — 8,215 — — — Unearned net deferred fees and costs and net loans in process (27,245) — 27,245 — — — Total $ 10,076,142 $ — $ — $ 10,076,142 $ 1,498 $ 10,077,640 Allowance: Construction and development n/a ⁴ $ (7,012) $ — $ (7,012) $ (11,963) $ (18,975) Owner-occupied CRE n/a ⁴ (20,530) — (20,530) (4,298) (24,828) Non-owner-occupied CRE n/a ⁴ (50,965) — (50,965) (98,986) (149,951) Multifamily residential real estate n/a ⁴ (6,726) — (6,726) (2,681) (9,407) Total commercial real estate $ (84,496) 84,496 — — — — Agriculture (27,018) — — (27,018) (24,360) (51,378) Commercial non-real estate (27,599) — — (27,599) (32,938) (60,537) Residential real estate (8,202) 737 — (7,465) (2,595) (10,060) Consumer and other (2,572) — — (2,572) 532 (2,040) Total $ (149,887) $ — $ — $ (149,887) $ (177,289) $ (327,176) 1 Reclassifications made from reported loan and related allowance segments to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, to estimate credit losses. 2 Unamortized discount on acquired loans, unearned net deferred fees and costs and net loans in process to related were assigned to appropriate loan portfolio segment to present loan categories at amortized cost. 3 Discounts on previously acquired loans and Day 1 impact of adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, were transferred to allowance for credit losses as a part of CECL adoption. 4 Balance for this segment is included in total commercial real estate for September 30, 2020. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and approximate fair value of investments in securities | The following table presents amortized cost and approximate fair value of investments in securities. September 30, 2021 September 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) Securities available for sale U.S. Treasury securities $ 99,093 $ — $ (306) $ 98,787 $ 49,924 $ 228 $ — $ 50,152 U.S. Agency securities 24,976 — (928) 24,048 24,974 86 — 25,060 Mortgage-backed securities: Government National Mortgage Association 284,757 5,303 (386) 289,674 485,689 11,481 (43) 497,127 Federal Home Loan Mortgage Corporation 1,033,335 9,558 (10,391) 1,032,502 578,650 18,919 (9) 597,560 Federal National Mortgage Association 575,336 3,883 (6,011) 573,208 287,842 7,788 (16) 295,614 Small Business Assistance Program 235,402 5,679 (1,204) 239,877 244,653 7,884 (58) 252,479 States and political subdivision securities 43,614 940 (4) 44,550 54,224 1,356 — 55,580 Corporate debt securities 39,000 519 — 39,519 — — — — Other 1,006 31 — 1,037 1,006 48 — 1,054 Total $ 2,336,519 $ 25,913 $ (19,230) $ 2,343,202 $ 1,726,962 $ 47,790 $ (126) $ 1,774,626 Securities held to maturity U.S. Treasury securities $ 27,782 $ 7 $ (250) $ 27,539 $ — $ — $ — $ — Mortgage-backed securities: Government National Mortgage Association 55,698 — (298) 55,400 — — — — Federal Home Loan Mortgage Corporation 130,272 30 (789) 129,513 — — — — Federal National Mortgage Association 84,002 — (627) 83,375 — — — — Small Business Assistance Program 66,547 — (1,212) 65,335 — — — — States and political subdivision securities 3,450 — — 3,450 — — — — Total $ 367,751 $ 37 $ (3,176) $ 364,612 $ — $ — $ — $ — |
Summary of amortized cost and approximate fair value of debt securities available for sale | The amortized cost and approximate fair value of debt securities of September 30, 2021 and 2020, 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 any penalty. September 30, 2021 September 30, 2020 Amortized Estimated Amortized Estimated (dollars in thousands) Securities available for sale Due in one year or less $ 15,745 $ 15,808 $ 67,131 $ 67,456 Due after one year through five years 131,241 131,412 51,779 52,694 Due after five years through ten years 59,697 59,684 10,212 10,642 Due after ten years — — — — 206,683 206,904 129,122 130,792 Mortgage-backed securities 2,128,830 2,135,261 1,596,834 1,642,780 Securities without contractual maturities 1,006 1,037 1,006 1,054 Total $ 2,336,519 $ 2,343,202 $ 1,726,962 $ 1,774,626 Securities held to maturity Due in one year or less $ 150 $ 150 $ — $ — Due after one year through five years 500 500 — — Due after five years through ten years 30,582 30,339 — — Due after ten years — — — — 31,232 30,989 — — Mortgage-backed securities 336,519 333,623 — — Securities without contractual maturities — — — — Total $ 367,751 $ 364,612 $ — $ — |
Summary of unrealized gains and losses on investments | The following table presents the Company’s gross unrealized losses and approximate fair value of debt securities, separated by length of time that individual securities have been in a continuous unrealized loss position. As of September 30, 2021 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) Securities available for sale U.S. Treasury securities $ 98,787 $ (306) $ — $ — $ 98,787 $ (306) U.S. Agency securities 24,048 (928) — — 24,048 (928) Mortgage-backed securities 1,127,522 (17,706) 24,822 (286) 1,152,344 (17,992) States and political subdivision securities 2,496 (4) — — 2,496 (4) Total $ 1,252,853 $ (18,944) $ 24,822 $ (286) $ 1,277,675 $ (19,230) Securities held to maturity U.S. Treasury securities $ 13,819 $ (250) $ — $ — $ 13,819 $ (250) Mortgage-backed securities 323,815 (2,926) — — 323,815 (2,926) States and political subdivision securities — — — — — — Total $ 337,634 $ (3,176) $ — $ — $ 337,634 $ (3,176) As of September 30, 2020 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) Securities available for sale U.S. Treasury securities $ — $ — $ — $ — $ — $ — U.S. Agency securities — — — — — — Mortgage-backed securities 71,547 (103) 27,897 (23) 99,444 (126) Total $ 71,547 $ (103) $ 27,897 $ (23) $ 99,444 $ (126) Securities held to maturity U.S. Treasury securities $ — $ — $ — $ — $ — $ — Mortgage-backed securities — — — — — — States and political subdivision securities — — — — — — Total $ — $ — $ — $ — $ — $ — |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of net loans receivable | The following table describes the Company’s eight loan portfolio pools, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. Loan Segment Composition Collateral Primary Source of Repayment Key Risk Characteristics Construction and development 1 Commercial and residential construction loans Secured by commercial and residential real estate Cash flows Industry and geography of borrower's business, purpose of the loan, repayment sources, borrower's capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Owner-occupied CRE Small and middle market businesses Secured by commercial real estate Non-owner-occupied CRE Multifamily residential real estate Agriculture Agri-business operating and real estate loans Secured by operating assets, agricultural real estate, and guarantees of owners Cash flows Geography of the borrower's operations, commodity type and prices and weather patterns, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Commercial non-real estate Small and middle market businesses and loans made to public sector Secured by business assets and guarantees of owners Cash flows Industry and geography of the borrower's business, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral Residential real estate Residential mortgages and home equity loans and lines Secured by residential real estate Borrower's income Borrower's capacity and willingness to repay, unemployment rates and other economic factors, and customer repayment history Consumer and other Consumer loans and all other loan relationships that do not fit within categories above, including consumer and commercial credit cards and consumer deposit account overdrafts Secured by automobiles, unsecured 1 Residential real estate construction loans are included in the construction and development segment until construction is completed, after which the loan is moved to the residential real estate loan segment. The following table presents the composition of loans at amortized cost as of September 30, 2021 and 2020. September 30, 2021 September 30, 2020 Total Loans Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost Total Loans ² Less: Fair Value Option Loans Less: Guaranteed Loans ¹ Loans at Amortized Cost (dollars in thousands) Construction and development $ 394,712 $ — $ — $ 394,712 $ 509,644 $ — $ — $ 509,644 Owner-occupied CRE 1,357,715 91,793 54,133 1,211,789 1,417,394 109,097 48,468 1,259,829 Non-owner-occupied CRE 2,191,848 224,863 21,072 1,945,913 2,894,380 283,266 27,402 2,583,712 Multifamily residential real estate 539,063 1,453 — 537,610 533,983 3,847 — 530,136 Total commercial real estate 4,483,338 318,109 75,205 4,090,024 5,355,401 396,210 75,870 4,883,321 Agriculture 1,428,614 96,393 19,667 1,312,554 1,722,696 129,041 42,353 1,551,302 Commercial non-real estate 1,535,394 110,031 239,850 1,185,513 2,165,038 129,934 744,371 1,290,733 Residential real estate ³ 628,098 — 271 627,827 730,812 — 290 730,522 Consumer and other ⁴ 109,609 — — 109,609 102,195 — — 102,195 Total $ 8,185,053 $ 524,533 $ 334,993 $ 7,325,527 $ 10,076,142 $ 655,185 $ 862,884 $ 8,558,073 1 Includes loans guaranteed by agencies of the U.S. government. 2 As a part of the adoption of CECL, loan pools are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, and unearned net deferred fees and costs. For additional information on September 30, 2020 loan segment balances, see Note 2. 3 Includes residential real estate loans held for sale of $2.9 million and $12.4 million at September 30, 2021 and September 30, 2020, respectively, recorded at the lower of cost or fair value. 4 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts and loans in process. |
Summary of the Company's nonaccrual loans | The following table presents the Company’s past due loans at amortized cost as of September 30, 2021. This table excludes loans measured at fair value under the fair value option of $524.5 million at September 30, 2021. As of September 30, 2021 Current or Less Than 30 Days Past Due 30-89 Days Past Due 90+ Days Past Due Total (dollars in thousands) Construction and development $ 394,692 $ — $ 20 $ 394,712 Owner-occupied CRE 1,243,816 478 21,628 1,265,922 Non-owner-occupied CRE 1,960,490 — 6,495 1,966,985 Multifamily residential real estate 530,823 — 6,787 537,610 Total commercial real estate 4,129,821 478 34,930 4,165,229 Agriculture 1,204,978 2,730 124,513 1,332,221 Commercial non-real estate 1,402,902 3,158 19,303 1,425,363 Residential real estate 621,019 825 6,254 628,098 Consumer and other 109,467 67 75 109,609 Total $ 7,468,187 $ 7,258 $ 185,075 $ 7,660,520 The following table presents the Company’s past due loans at September 30, 2020. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value under the fair value option of $655.2 million at September 30, 2020. As of September 30, 2020 Current or Less Than 30 Days Past Due 30-89 Days Past Due 90+ Days Past Due and Nonaccrual Total (dollars in thousands) Commercial real estate $ 4,790,963 $ 8,894 $ 73,146 $ 4,873,003 Agriculture 1,317,377 60,020 217,642 1,595,039 Commercial non-real estate 2,021,308 3,512 26,843 2,051,663 Residential real estate 821,154 2,459 4,441 828,054 Consumer and other 100,319 45 74 100,438 Total $ 9,051,121 $ 74,930 $ 322,146 $ 9,448,197 The following table provides additional information on nonaccrual loans for the fiscal year ended September 30, 2021. The Company recognized $8.8 million of interest income on nonaccrual loans during the fiscal year ended September 30, 2021. September 30, 2020 September 30, 2021 Fiscal Year Ended September 30, 2021 Nonaccrual Nonaccrual 90+ Days Past Due and Still Accruing Nonaccrual Loans with No Related ACL Accrued Interest Written Off on Nonaccrual Loans (dollars in thousands) Construction and development n/a ¹ $ 20 $ — $ — $ 115 Owner-occupied CRE n/a ¹ 21,628 — 7,587 31 Non-owner-occupied CRE n/a ¹ 6,495 — 1,542 1,922 Multifamily residential real estate n/a ¹ 6,787 — 6,788 40 Total commercial real estate $ 73,146 34,930 — 15,917 2,108 Agriculture 217,642 124,513 — 36,997 821 Commercial non-real estate 26,843 19,303 — 5,862 36 Residential real estate 4,441 6,254 — 87 77 Consumer and other 74 34 41 — 1 Total $ 322,146 $ 185,034 $ 41 $ 58,863 $ 3,043 1 Balance for this segment is included in total commercial real estate for September 30, 2020. |
Composition of loan portfolio by internal risk rating | See the table below for a summary of credit quality risk ratings at September 30, 2021. Prior to October 1, 2020, the Company assigned all non-consumer loans a credit quality risk rating. These ratings were Pass, Watch, Substandard, Doubtful and Loss. Loans with a Pass and Watch rating represented 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 were those where a well-defined weakness had been identified that may have put full-collection of contractual debt at risk. Doubtful loans were those where a well-defined weakness had been identified and a loss of contractual debt was probable. Credit Quality Credit Quality Indicators Pass Commercial loans within this category are not adversely rated, current as to principal and interest, and are otherwise in material compliance with the contractual terms of the loan agreement. Management believes there is a low likelihood of loss related to loans in this category. Special Mention Commercial loans within this category have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant an adverse classification. Substandard Commercial loans within this category are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans in this category are assigned a workout loan officer to closely monitor the relationship. Doubtful Commercial loans within this category are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. This table presents the loans based on credit quality, loan segment and year of origination at amortized cost and excludes loans measured at fair value under the fair value option of $524.5 million at September 30, 2021. Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Construction and development Pass $ 181,518 $ 63,253 $ 64,501 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 383,868 Special Mention 2,543 — 195 — — — — — 2,738 Substandard 6,171 — 1,935 — — — — — 8,106 Doubtful — — — — — — — — — Total construction and development $ 190,232 $ 63,253 $ 66,631 $ 8,699 $ 698 $ 292 $ 64,907 $ — $ 394,712 Owner-occupied CRE Pass $ 352,292 $ 341,767 $ 147,407 $ 91,080 $ 103,741 $ 114,949 $ 46,110 $ — $ 1,197,346 Special Mention 7,866 1,533 4,297 5,749 2,703 1,113 90 — 23,351 Substandard 7,504 3,323 2,246 11,040 11,083 6,021 74 — 41,291 Doubtful — — 1,967 — 1,967 — — — 3,934 Total owner-occupied CRE $ 367,662 $ 346,623 $ 155,917 $ 107,869 $ 119,494 $ 122,083 $ 46,274 $ — $ 1,265,922 Non-owner-occupied CRE Pass $ 310,329 $ 314,159 $ 245,293 $ 252,507 $ 211,459 $ 199,345 $ 34,666 $ — $ 1,567,758 Special Mention 24,487 28,225 47,108 65,763 23,115 13,597 — — 202,295 Substandard 77,924 4,000 31,510 32,282 18,692 7,989 24,174 — 196,571 Doubtful 361 — — — — — — — 361 Total non-owner-occupied CRE $ 413,101 $ 346,384 $ 323,911 $ 350,552 $ 253,266 $ 220,931 $ 58,840 $ — $ 1,966,985 Multifamily residential real estate Pass $ 228,989 $ 95,450 $ 112,945 $ 56,312 $ 5,320 $ 28,708 $ 1,215 $ — $ 528,939 Special Mention — — — — 31 239 — — 270 Substandard — 494 — 806 — 313 — — 1,613 Doubtful — 6,788 — — — — — — 6,788 Total multifamily residential real estate $ 228,989 $ 102,732 $ 112,945 $ 57,118 $ 5,351 $ 29,260 $ 1,215 $ — $ 537,610 Term loans Fiscal Year 2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving Loans Total (dollars in thousands) Total commercial real estate Pass $ 1,073,128 $ 814,629 $ 570,146 $ 408,598 $ 321,218 $ 343,294 $ 146,898 $ — $ 3,677,911 Special Mention 34,896 29,758 51,600 71,512 25,849 14,949 90 — 228,654 Substandard 91,599 7,817 35,691 44,128 29,775 14,323 24,248 — 247,581 Doubtful 361 6,788 1,967 — 1,967 — — — 11,083 Total commercial real estate $ 1,199,984 $ 858,992 $ 659,404 $ 524,238 $ 378,809 $ 372,566 $ 171,236 $ — $ 4,165,229 Agriculture Pass $ 231,671 $ 130,681 $ 68,677 $ 55,087 $ 50,028 $ 17,559 $ 453,992 $ — $ 1,007,695 Special Mention 23,159 10,736 3,404 16,389 4,825 3,300 26,554 — 88,367 Substandard 29,537 10,545 12,574 35,213 35,401 4,246 85,750 — 213,266 Doubtful 1,748 — 641 19,277 883 — 344 — 22,893 Total agriculture $ 286,115 $ 151,962 $ 85,296 $ 125,966 $ 91,137 $ 25,105 $ 566,640 $ — $ 1,332,221 Commercial non-real estate Pass $ 388,893 $ 163,792 $ 165,759 $ 36,469 $ 25,612 $ 28,525 $ 531,277 $ — $ 1,340,327 Special Mention 318 611 2,622 1,137 2,417 821 16,259 — 24,185 Substandard 22,070 6,294 1,164 6,814 62 1,048 18,967 — 56,419 Doubtful — — 43 — — 3,955 434 — 4,432 Total commercial non-real estate $ 411,281 $ 170,697 $ 169,588 $ 44,420 $ 28,091 $ 34,349 $ 566,937 $ — $ 1,425,363 Residential real estate ¹ Pass $ 153,505 $ 163,337 $ 52,833 $ 36,323 $ 21,777 $ 87,246 $ 102,039 $ 271 $ 617,331 Special Mention 754 178 1,013 256 19 240 543 — 3,003 Substandard 36 444 821 771 485 4,364 843 — 7,764 Doubtful — — — — — — — — — Total residential real estate $ 154,295 $ 163,959 $ 54,667 $ 37,350 $ 22,281 $ 91,850 $ 103,425 $ 271 $ 628,098 Consumer and other ¹ Pass $ 26,157 $ 10,371 $ 15,814 $ 1,532 $ 542 $ 571 $ 54,588 $ — $ 109,575 Special Mention — — — — — — — — — Substandard — 5 8 8 — — 13 — 34 Doubtful — — — — — — — — — Total consumer and other $ 26,157 $ 10,376 $ 15,822 $ 1,540 $ 542 $ 571 $ 54,601 $ — $ 109,609 Total loans Pass $ 1,873,354 $ 1,282,810 $ 873,229 $ 538,009 $ 419,177 $ 477,195 $ 1,288,794 $ 271 $ 6,752,839 Special Mention 59,127 41,283 58,639 89,294 33,110 19,310 43,446 — 344,209 Substandard 143,242 25,105 50,258 86,934 65,723 23,981 129,821 — 525,064 Doubtful 2,109 6,788 2,651 19,277 2,850 3,955 778 — 38,408 Total loans $ 2,077,832 $ 1,355,986 $ 984,777 $ 733,514 $ 520,860 $ 524,441 $ 1,462,839 $ 271 $ 7,660,520 1 The Company generally does not risk rate residential real estate or consumer and other 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 and other loans. The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2020. This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value under the fair value option of $655.2 million at September 30, 2020. As of September 30, 2020 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer and Other ¹ Total (dollars in thousands) Credit Risk Profile by Internally Assigned Grade Grade: Pass $ 4,062,814 $ 968,875 $ 1,851,323 $ 806,436 $ 99,632 $ 7,789,080 Watchlist 577,399 265,714 94,401 6,972 709 945,195 Substandard 229,467 348,910 94,316 13,173 93 685,959 Doubtful 3,323 11,540 11,623 1,473 4 27,963 Loss — — — — — — Total $ 4,873,003 $ 1,595,039 $ 2,051,663 $ 828,054 $ 100,438 $ 9,448,197 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. |
Summary of impaired financing receivables | The following table presents the Company’s impaired loans at September 30, 2020. This table excludes purchased credit impaired loans and loans measured at fair value under the fair value option. September 30, 2020 Recorded Investment Unpaid Principal Balance Related Allowance for Credit Losses Impaired loans: (dollars in thousands) With an allowance for credit losses recorded: Commercial real estate $ 111,121 $ 114,034 $ 25,087 Agriculture 53,052 55,145 8,151 Commercial non-real estate 39,821 47,571 7,822 Residential real estate 5,670 6,314 1,903 Consumer and other 98 109 30 Total impaired loans with an allowance for credit losses recorded 209,762 223,173 42,993 With no allowance for credit losses recorded: Commercial real estate 121,380 161,211 — Agriculture 308,734 332,272 — Commercial non-real estate 66,542 75,365 — Residential real estate 6,543 8,818 — Consumer and other — 108 — Total impaired loans with no allowance for credit losses recorded 503,199 577,774 — Total impaired loans $ 712,961 $ 800,947 $ 42,993 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 Fiscal Year Ended September 30, 2019 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 137,017 $ 8,528 $ 42,374 $ 2,339 Agriculture 355,719 22,927 223,146 13,093 Commercial non-real estate 89,152 7,745 28,196 1,791 Residential real estate 10,408 691 6,889 410 Consumer and other 138 9 231 20 Total $ 592,434 $ 39,900 $ 300,836 $ 17,653 |
Schedule of total contractually required principal and interest | The following table is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 September 30, 2019 (dollars in thousands) Balance, beginning of period $ 26,047 $ 34,973 Accretion (6,869) (9,202) Reclassification (to) from nonaccretable difference (3,790) 276 Balance, end of period $ 15,388 $ 26,047 |
Summary of all non-accruing loans restructured in Troubled Debt Restructurings on financing receivables | The following table presents the amortized cost of the Company’s TDR balances as of September 30, 2021 and recorded value of TDR balances as of September 30, 2020. September 30, 2021 September 30, 2020 Performing Nonperforming Performing Nonperforming (dollars in thousands) Construction and development $ — $ 20 n/a ¹ n/a ¹ Owner-occupied CRE 3,322 14,555 n/a ¹ n/a ¹ Non-owner-occupied CRE 11,673 371 n/a ¹ n/a ¹ Multifamily residential real estate — — n/a ¹ n/a ¹ Total commercial real estate 14,995 14,946 $ 23,215 $ 11,913 Agriculture 29,996 9,275 2,976 45,971 Commercial non real estate 3,922 9,467 8,734 4,803 Residential real estate 191 48 277 74 Consumer and other — 13 3 31 Total $ 49,104 $ 33,749 $ 35,205 $ 62,792 1 Balance for this segment is included in total commercial real estate for September 30, 2020. 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 performing loans restructured in TDRs during the fiscal years ended September 30, 2021, 2020 and 2019. September 30, 2021 September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Construction and development — $ — $ — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Owner-occupied CRE 1 627 627 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Non-owner-occupied CRE 1 10,431 10,431 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Multifamily residential real estate — — — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Total commercial real estate 2 11,058 11,058 4 $ 17,586 $ 17,586 2 $ 15,466 $ 15,466 Agriculture 2 9,506 9,506 2 993 993 16 11,537 11,537 Commercial non-real estate 1 203 203 5 6,353 6,353 2 1,445 1,445 Residential real estate — — — 1 50 50 — — — Consumer and other — — — — — — 2 188 188 Total performing 5 $ 20,767 $ 20,767 12 $ 24,982 $ 24,982 22 $ 28,636 $ 28,636 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. The following table presents a summary of all nonperforming loans restructured in TDRs during the fiscal years ended September 30, 2021, 2020 and 2019. September 30, 2021 September 30, 2020 September 30, 2019 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Construction and development — $ — $ — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Owner-occupied CRE 3 11,925 11,925 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Non-owner-occupied CRE 1 361 361 n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Multifamily residential real estate — — — n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ n/a ¹ Total commercial real estate 4 12,286 12,286 1 $ 2,216 $ 2,216 1 $ 882 $ 882 Agriculture 9 4,273 4,273 12 27,807 27,807 9 5,802 5,802 Commercial non-real estate 3 5,213 5,213 5 1,752 1,752 2 3,699 3,699 Residential real estate — — — — — — — — — Consumer and other — — — — — — — — — Total nonperforming 16 $ 21,772 $ 21,772 18 $ 31,775 $ 31,775 12 $ 10,383 $ 10,383 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. 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 fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Construction and development — $ — n/a ¹ n/a ¹ n/a ¹ $ — Owner-occupied CRE 1 10,577 n/a ¹ n/a ¹ n/a ¹ — Non-owner-occupied CRE 1 361 n/a ¹ n/a ¹ n/a ¹ — Multifamily residential real estate — — n/a ¹ n/a ¹ n/a ¹ — Total commercial real estate 2 10,938 1 $ — — $ — Agriculture 2 439 10 1,144 — — Commercial non-real estate 1 3,450 4 921 — — Residential real estate — — — — — — Consumer and other — — — — 1 — Total 5 $ 14,827 15 $ 2,065 1 $ — 1 Balance for this segment is included in total commercial real estate for the fiscal year ended September 30, 2020 and September 30, 2019. |
Allowance for credit losses on financing receivables | The following table presents ACL activity by loan portfolio segment for the fiscal year ended September 30, 2021. Fiscal Year Ended September 30, 2021 Adjusted balance September 30, 2020 ¹ Adoption of ASU 2016-13, as amended Beginning balance, October 1, Charge-offs Recoveries Provision for (reversal of) credit losses on loans Ending balance, September 30, 2021 (dollars in thousands) Construction and development $ 7,012 $ 11,963 $ 18,975 $ (27) $ 424 $ 703 $ 20,075 Owner-occupied CRE 20,530 4,298 24,828 (2,965) 144 (3,784) 18,223 Non-owner-occupied CRE 50,965 98,986 149,951 (36,951) 457 (1,323) 112,134 Multifamily residential real estate 6,726 2,681 9,407 (377) — (4,152) 4,878 Total commercial real estate 85,233 117,928 203,161 (40,320) 1,025 (8,556) 155,310 Agriculture 27,018 24,360 51,378 (5,523) 2,869 (8,384) 40,340 Commercial non-real estate 27,599 32,938 60,537 (6,216) 1,155 (16,220) 39,256 Residential real estate 7,465 2,595 10,060 (389) 289 (828) 9,132 Consumer and other 2,572 (532) 2,040 (939) 499 400 2,000 Total $ 149,887 $ 177,289 $ 327,176 $ (53,387) $ 5,837 $ (33,588) $ 246,038 1 At September 30, 2020, the allowance balances were reclassified to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs. For additional information, see Note 2. The following tables present ACL activity under the incurred loss model by loan portfolio segment for the fiscal years ended September 30, 2020 and September 30, 2019. Fiscal Year Ended September 30, 2020 Beginning balance, October 1, Charge-offs Recoveries Provision (Improvement) impairment of ASC 310-30 loans Ending balance, September 30, 2020 (dollars in thousands) Total commercial real estate $ 16,827 $ (5,181) $ 1,395 $ 71,474 $ (19) $ 84,496 Agriculture 30,819 (21,705) 2,189 15,980 (265) 27,018 Commercial non-real estate 17,567 (14,178) 1,018 23,192 — 27,599 Residential real estate 4,095 (615) 453 3,827 442 8,202 Consumer and other 1,466 (3,071) 416 3,731 30 2,572 Total $ 70,774 $ (44,750) $ 5,471 $ 118,204 $ 188 $ 149,887 Fiscal Year Ended September 30, 2019 Beginning balance, October 1, Charge-offs Recoveries Provision (Improvement) impairment of ASC 310-30 loans Ending balance, September 30, 2019 (dollars in thousands) Total commercial real estate $ 16,777 $ (1,511) $ 567 $ 1,514 $ (520) $ 16,827 Agriculture 28,121 (24,847) 385 27,160 — 30,819 Commercial non-real estate 13,610 (7,895) 392 11,431 29 17,567 Residential real estate 4,749 (998) 468 (56) (68) 4,095 Consumer and other 1,283 (1,810) 536 1,457 — 1,466 Total $ 64,540 $ (37,061) $ 2,348 $ 41,506 $ (559) $ 70,774 |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Summary of activity related to the FDIC indemnification asset | The following table represents a summary of the activity related to the FDIC indemnification asset for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Balance, beginning of period $ — $ 1,079 $ 2,502 Amortization — (1,012) (1,386) Changes in expected reimbursements from FDIC for changes in expected credit losses — — (10) Changes in reimbursable expenses — — (41) Payments of covered losses to the FDIC — 47 14 Settlement upon expiration of loss-sharing arrangement — (114) — Balance, end of period $ — $ — $ 1,079 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of major classes of premises and equipment and the total amount of accumulated depreciation | The following table presents the major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Land $ 33,549 $ 31,601 Buildings and building improvements 102,826 101,891 Furniture and equipment 17,201 24,522 Construction in progress 1,722 149 Total 155,298 158,163 Accumulated depreciation (37,320) (39,109) Premise and equipment, net $ 117,978 $ 119,054 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions, notional amounts | The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by the Company as of September 30, 2021 and 2020. September 30, 2021 September 30, 2020 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps - FVO loan portfolio Financial institution counterparties $ 496,051 $ — $ (32,868) $ 592,241 $ — $ (62,587) Interest rate swaps - Other Financial institution counterparties 819,339 — (1,605) 641,189 — (1,672) Customer counterparties 819,339 49,790 (4,780) 641,189 83,533 — Interest rate caps Financial institution counterparties 1,122 5 — 20,538 2 — Customer counterparties 1,122 — (5) 20,538 — (2) Risk participation agreements 106,862 — (186) 80,681 — (32) Mortgage loan commitments 35,809 — (20) 92,278 — (96) Mortgage loan forward sale contracts 35,715 20 — 94,084 96 — Total $ 2,315,359 $ 49,815 $ (39,464) $ 2,182,738 $ 83,631 $ (64,389) |
Summary of offsetting assets | The following tables provide information on the Company's netting adjustments as of September 30, 2021 and 2020. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2021 Total Derivative Assets $ 49,815 $ (3,186) $ 12,598 $ 59,227 Total Derivative Liabilities ¹ (39,464) 3,186 31,472 (4,806) 1 There was an additional $23.1 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2021 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, 2020 Total Derivative Assets $ 83,631 $ (5,263) $ 20,012 $ 98,380 Total Derivative Liabilities ¹ (64,389) 5,263 59,028 (98) 1 There was an additional $22.9 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2020 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 September 30, 2021 and 2020. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2021 Total Derivative Assets $ 49,815 $ (3,186) $ 12,598 $ 59,227 Total Derivative Liabilities ¹ (39,464) 3,186 31,472 (4,806) 1 There was an additional $23.1 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2021 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, 2020 Total Derivative Assets $ 83,631 $ (5,263) $ 20,012 $ 98,380 Total Derivative Liabilities ¹ (64,389) 5,263 59,028 (98) 1 There was an additional $22.9 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2020 and is included in other assets in the consolidated balance sheets. |
Effect of derivatives on consolidated statement of income | The effect of derivatives on the consolidated statements of income for the fiscal years ended September 30, 2021, 2020 and 2019 was as follows. Amount of (Loss) Gain Recognized in Consolidated Statements of Income Fiscal Years Ended September 30, Derivatives not designated as hedging instruments: Location of (Loss) Gain Recognized in Consolidated Statements of Income 2021 2020 2019 (dollars in thousands) Interest rate swaps - FVO loan portfolio Derivative interest expense $ (12,727) $ (8,722) $ 619 Interest rate swaps - FVO loan portfolio Change in fair value of FVO loans and related derivatives 32,520 (29,777) (69,078) Interest rate swaps and other derivatives Other derivative income 6,500 60 5,015 Mortgage loan commitments Other derivative income 76 107 17 Mortgage loan forward sale contracts Other derivative income (76) (107) (17) |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the Company's carrying amount of goodwill as of September 30, 2021 and September 30, 2020. September 30, September 30, (dollars in thousands) Balance, beginning of period $ — $ 739,023 Goodwill acquired during the period — 1,539 Goodwill impairment during the period — (740,562) Balance, end of period $ — $ — |
Core Deposits and Other Intan_2
Core Deposits and Other Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets subject to amortization | The following table presents a summary of intangible assets subject to amortization as of September 30, 2021 and 2020. Core Deposit Intangible Brand Customer Relationships Intangible Other Total (dollars in thousands) As of September 30, 2021 Gross carrying amount $ 7,339 $ — $ 3,172 $ 538 $ 11,049 Accumulated amortization (5,019) — (488) (391) (5,898) Net intangible assets $ 2,320 $ — $ 2,684 $ 147 $ 5,151 As of September 30, 2020 Gross carrying amount $ 7,339 $ — $ 3,172 $ 538 $ 11,049 Accumulated amortization (4,316) — (244) (325) (4,885) Net intangible assets $ 3,023 $ — $ 2,928 $ 213 $ 6,164 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense of intangible assets in subsequent fiscal years is as follows. Fiscal year Amount (dollars in thousands) 2022 $ 929 2023 831 2024 742 2025 683 2026 502 2027 and thereafter 1,464 Total $ 5,151 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of ROU Assets and Liabilities | September 30, 2021 September 30, 2020 (dollars in thousands) ROU asset $ 19,748 $ 22,709 Total lease liability 20,824 24,114 Weighted average remaining lease term 6.10 years 6.29 years Weighted average discount rate ¹ 1.83 % 1.83 % 1 The Company uses its incremental borrowing rate to calculate the present value of lease payments when the interest rate implicit in the lease is not disclosed. |
Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30, 2021 and 2020. ASU 842 was adopted on October 1, 2019, therefore no cash flow information is available for the fiscal year ended September 30, 2019. Fiscal Years Ended September 30, 2021 2020 (dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 5,838 $ 5,720 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 2,878 8,517 |
Maturity Analysis of Operating Lease Liability | The following table presents a maturity analysis of the Company's operating lease liability as of September 30, 2021. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total undiscounted lease payments 22,158 Less: Amounts representing interest (1,334) Lease liability $ 20,824 Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total $ 22,158 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Summary of the composition of deposits | The following table presents the composition of deposits as of September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Noninterest-bearing demand $ 2,608,579 $ 2,586,743 Interest-bearing demand 7,967,316 7,139,058 Time deposits, greater than $250,000 146,962 352,913 Time deposits, less than or equal to $250,000 587,609 930,065 Total $ 11,310,466 $ 11,008,779 |
Schedule of time deposit maturities | At September 30, 2021, the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2022. Fiscal year Amount (dollars in thousands) 2022 $ 575,318 2023 105,017 2024 25,362 2025 14,169 2026 13,286 2027 and thereafter 1,419 Total $ 734,571 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Summary of repurchase agreements | The following tables present the gross obligation by the class of collateral pledged and the remaining contractual maturity of the agreements at September 30, 2021 and 2020. September 30, 2021 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 $ 91,289 $ — $ — $ — $ 91,289 Total repurchase agreements $ 91,289 $ — $ — $ — $ 91,289 September 30, 2020 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 $ 65,506 $ — $ — $ — $ 65,506 Total repurchase agreements $ 65,506 $ — $ — $ — $ 65,506 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB advances and other borrowings | The following table presents the FHLB advances and other borrowings at September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Short-term borrowings: Fed funds purchased, matured in October 2020 $ — $ 75,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.76% to 2.88% and maturity dates from September 2022 to September 2024 collateralized by real estate loans, with various call dates at the option of the FHLB 120,000 120,000 Total FHLB advances and other borrowings $ 120,000 $ 195,000 |
Summary of FHLB advances and other borrowings by maturity date | As of September 30, 2021, FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) 2022 $ 30,000 2023 30,000 2024 60,000 2025 — 2026 — 2027 and thereafter — Total $ 120,000 |
Subordinated Debentures and S_2
Subordinated Debentures and Subordinated Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of subordinated debentures and subordinated notes payable | The following table presents the subordinated debentures and subordinated notes payable at September 30, 2021 and 2020. September 30, 2021 September 30, 2020 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 (1,953) (2,088) Total junior subordinated debentures payable, net of fair value adjustment 73,967 73,832 Subordinated notes payable Fixed to floating rate effective August 2020, 3.15% plus 3 month LIBOR 35,000 35,000 Total subordinated debentures and subordinated notes payable $ 108,967 $ 108,832 1 Adjustment reflects the fair value adjustments related to the junior subordinated deferrable interest debentures assumed as part of the HF Financial acquisition. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) components | The provision for income taxes charged to operations consists of the following for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Currently paid or payable Federal $ 37,928 $ 18,511 $ 30,779 State 9,261 3,733 9,327 Total 47,189 22,244 40,106 Deferred tax expense (benefit) Federal 8,851 (39,563) 7,507 State 2,971 (8,191) 617 Total 11,822 (47,754) 8,124 Total provision for (benefit from) income taxes $ 59,011 $ (25,510) $ 48,230 |
Schedule of effective income tax rate reconciliation | The income tax provision differs from the amount of income tax determined by applying a U.S. federal income tax rate of 21.0% for fiscal years September 30, 2021, 2020 and 2019 to pretax income due to the following. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Income tax expense computed at the statutory rate $ 55,077 $ (148,327) $ 45,275 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 9,663 (3,521) 7,855 Tax exempt interest income (5,633) (5,515) (5,193) Tax impact of stock-based compensation plans 355 83 (91) Tax impact of goodwill impairment — 131,051 — Other (451) 719 384 Income tax expense, as reported $ 59,011 $ (25,510) $ 48,230 |
Schedule of deferred tax assets and liabilities | Net deferred tax assets (liabilities) consist of the following components at September 30, 2021 and 2020. September 30, 2021 2020 (dollars in thousands) Deferred tax assets: Allowance for credit losses $ 59,864 $ 36,177 Compensation 5,587 3,547 Other real estate owned 66 3,067 Core deposit intangible and other fair value adjustments 1,939 2,554 Excess tax basis of loans acquired over carrying value 476 2,059 Other reserves 7,000 9,245 Goodwill and other intangibles 8,729 11,075 Lease liability 5,203 5,805 REIT income 1,917 — Net deferred loan fees 5,416 — Other 5,583 7,268 Total deferred tax assets 101,780 80,797 Deferred tax liabilities: Securities available for sale (1,647) (11,749) Premises and equipment (6,231) (7,167) Deferred REIT income — (8,522) Right of use asset (4,858) (5,399) Other (183) (251) Total deferred tax liabilities (12,919) (33,088) Net deferred tax assets $ 88,861 $ 47,709 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Plans' 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 September 30, 2021, 2020 and 2019. The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. September 30, 2021 September 30, 2020 September 30, 2019 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 249,180 $ 32.89 190,805 $ 37.20 163,287 $ 37.86 Granted 181,896 19.04 147,282 30.68 106,753 37.27 Vested (94,655) 33.33 (84,316) 38.60 (76,210) 38.64 Forfeited (4,389) 26.90 (4,591) 36.18 (3,025) 38.67 Canceled — — — — — — Restricted shares, end of period 332,032 $ 25.26 249,180 $ 32.89 190,805 $ 37.20 Vested, but not issuable at end of period 87,324 $ 29.32 62,992 $ 33.98 50,770 $ 33.88 Performance Shares Performance shares, beginning of fiscal year 175,740 $ 33.56 173,332 $ 38.50 175,196 $ 36.29 Granted 142,052 14.29 62,278 40.15 60,583 32.77 Vested (25,452) 41.07 (54,861) 39.43 (59,937) 30.79 Forfeited (5,243) 28.85 (5,009) 37.90 (2,510) 39.25 Canceled — — — — — — Performance shares, end of period 287,097 $ 24.10 175,740 $ 33.56 173,332 $ 38.50 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 5,612 $ 18.00 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of regulatory capital amounts and requirements | Capital amounts and ratios are presented in the following table: Actual Minimum Capital Requirement Ratio ¹ To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2021 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,378,832 15.1 % $ 547,720 6.0 % N/A N/A Bank 1,377,944 15.1 % 547,585 6.0 % $ 730,113 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,491,639 16.3 % 730,293 8.0 % N/A N/A Bank 1,469,751 16.1 % 730,113 8.0 % 912,641 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,378,832 10.6 % 520,228 4.0 % N/A N/A Bank 1,377,944 10.6 % 520,272 4.0 % 650,341 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,304,865 14.3 % 410,790 4.5 % N/A N/A Bank 1,377,944 15.1 % 410,688 4.5 % 593,217 6.5 % As of September 30, 2020 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,195,453 11.8 % $ 609,080 6.0 % N/A N/A Bank 1,187,905 11.7 % 608,916 6.0 % $ 811,888 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,350,658 13.3 % 812,107 8.0 % N/A N/A Bank 1,315,077 13.0 % 811,888 8.0 % 1,014,860 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,195,453 9.4 % 511,248 4.0 % N/A N/A Bank 1,187,905 9.3 % 509,649 4.0 % 637,062 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,121,621 11.0 % 456,810 4.5 % N/A N/A Bank 1,187,905 11.7 % 456,687 4.5 % 659,659 6.5 % 1 Does not include capital conservation buffer of 2.5% at both September 30, 2021 and 2020. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the Company's commitments | A summary of the Company’s commitments as of September 30, 2021 and 2020 is as follows. September 30, 2021 2020 (dollars in thousands) Commitments to extend credit $ 2,145,321 $ 2,138,138 Letters of credit 43,976 65,707 |
Maturity Analysis of Operating Lease Liability | The following table presents a maturity analysis of the Company's operating lease liability as of September 30, 2021. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total undiscounted lease payments 22,158 Less: Amounts representing interest (1,334) Lease liability $ 20,824 Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows. Fiscal year Amount (dollars in thousands) 2022 $ 5,088 2023 4,396 2024 3,644 2025 2,693 2026 and thereafter 6,337 Total $ 22,158 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of the 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 September 30, 2021 and 2020. Fair Value Level 1 Level 2 Level 3 ¹ (dollars in thousands) As of September 30, 2021 U.S. Treasury securities $ 98,787 $ 98,787 $ — $ — U.S. Agency securities 24,048 24,048 — — Mortgage-backed securities 2,135,261 — 2,135,261 — States and political subdivision securities 44,550 — 44,550 — Corporate debt securities 39,519 — 39,519 — Other 1,037 — 1,037 — Total securities available for sale $ 2,343,202 $ 122,835 $ 2,220,367 $ — Derivatives-assets $ 59,227 $ — $ 59,227 $ — Derivatives-liabilities 4,806 — 4,806 — Fair value loans 524,533 — 524,533 — Loan servicing rights 663 — — 663 As of September 30, 2020 U.S. Treasury securities $ 50,152 $ 50,152 $ — $ — U.S. Agency securities 25,060 25,060 — — Mortgage-backed securities 1,642,780 — 1,642,780 — States and political subdivision securities 55,580 — 51,783 3,797 Other 1,054 — 1,054 — Total securities available for sale $ 1,774,626 $ 75,212 $ 1,695,617 $ 3,797 Derivatives-assets $ 98,380 $ — $ 98,380 $ — Derivatives-liabilities 98 — 98 — Fair value loans 655,185 — 655,185 — Loan servicing rights 1,303 — — 1,303 |
Summary of the 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 fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Loan servicing rights Balance, beginning of period $ 1,303 $ 2,255 $ 3,087 Realized and unrealized loss ¹ (640) (952) (832) Balance, end of period $ 663 $ 1,303 $ 2,255 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 the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis | The following table presents 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 September 30, 2021 and 2020. Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2021 Other repossessed property $ 3,606 $ — $ — $ 3,606 Impaired loans 161,307 — — 161,307 Mortgage loans held for sale, at lower of cost or fair value 2,904 — 2,904 — Property held for sale 600 — — 600 As of September 30, 2020 Other repossessed property $ 17,991 $ — $ — $ 17,991 Impaired loans 669,968 — — 669,968 Mortgage loans held for sale, at lower of cost or fair value 12,371 — 12,371 — Property held for sale 600 — — 600 |
Valuation techniques and significant observable inputs | The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2021 were as follows. Fair Value of Assets / (Liabilities) at September 30, 2021 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 3,606 Appraisal value Collateral specific adjustment N/A N/A Impaired loans 161,307 Appraisal value Collateral specific adjustment N/A N/A Property held for sale 600 Appraisal value Collateral specific adjustment N/A N/A |
Summary of fair values for balance sheet instruments | Fair values for on-balance sheet instruments as of September 30, 2021 and September 30, 2020 are as follows. September 30, 2021 September 30, 2020 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 1,552,260 $ 1,552,260 $ 432,887 $ 432,887 Securities purchased under agreements to resell Level 1 104,339 104,339 — — Securities held to maturity Level 1 27,782 27,539 — — Securities held to maturity Level 2 336,519 333,623 — — Securities held to maturity Level 3 3,450 3,450 — — Total securities held to maturity 367,751 364,612 — — Loans, net, excluding fair valued loans, loans held for sale and impaired loans ¹ Level 3 7,496,309 7,538,968 8,738,617 8,768,314 Liabilities Time deposits Level 2 $ 734,571 $ 735,407 $ 1,282,978 $ 1,287,814 FHLB advances and other borrowings Level 2 120,000 126,229 195,000 204,715 Securities sold under repurchase agreements Level 2 91,289 91,289 65,506 65,506 Subordinated debentures and subordinated notes payable Level 2 108,967 100,739 108,832 96,424 1 Includes $23.6 million and $29.0 million of net deferred loan fees at September 30, 2021 and 2020, respectively, of which carrying value approximates fair value. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 for the fiscal years ended September 30, 2021, 2020 and 2019. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands, except per share data) Net income (loss) $ 203,258 $ (680,808) $ 167,365 Weighted average common shares outstanding 55,183,940 55,612,251 57,154,865 Dilutive effect of stock based compensation 259,969 — 102,196 Weighted average common shares outstanding for diluted earnings per share calculation 55,443,909 55,612,251 57,257,061 Basic earnings per share $ 3.68 $ (12.24) $ 2.93 Diluted earnings per share $ 3.67 $ (12.24) $ 2.92 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following additionally presents revenues from customers that are included within noninterest income. Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Noninterest income Service charges and other fees $ 37,129 $ 37,741 $ 43,893 Wealth management fees 13,347 11,772 8,914 Other 3,017 2,733 3,045 Noninterest income from contracts with customers within the scope of ASC Topic 606 53,493 52,246 55,852 Noninterest income (loss) within the scope of other GAAP Topics ¹ 13,071 (52,229) 4,880 Total noninterest income $ 66,564 $ 17 $ 60,732 1 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. |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets (Dollars in Thousands) September 30, 2021 2020 (dollars in thousands) Assets Cash and cash equivalents $ 28,614 $ 36,420 Investment in subsidiaries 1,274,568 1,229,227 Net deferred tax assets 1,354 1,395 Other assets 7,225 6,086 Total assets $ 1,311,761 $ 1,273,128 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,967 $ 108,832 Accrued expenses and other liabilities 1,315 1,363 Total liabilities 110,282 110,195 Stockholders’ equity Common stock 551 550 Additional paid-in capital 1,182,732 1,183,647 Retained earnings 13,170 (57,169) Accumulated other comprehensive income 5,026 35,905 Total stockholders’ equity 1,201,479 1,162,933 Total liabilities and stockholders’ equity $ 1,311,761 $ 1,273,128 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income (Dollars in Thousands) Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Income Dividends from subsidiary bank $ 2,757 $ 75,079 $ 148,128 Dividends on securities 4 2 19 Other 60 87 120 Net gain on sale of securities 248 — — Total income 3,069 75,168 148,267 Expenses Interest on subordinated debentures and subordinated notes payable 3,182 4,515 5,540 Salaries and employee benefits 3,868 5,295 6,288 Professional fees 1,198 1,291 1,035 Other 2,776 2,913 2,653 Total expense 11,024 14,014 15,516 Income before income tax and equity in undistributed net income of subsidiaries (7,955) 61,154 132,751 Income tax benefit (2,074) (1,114) (2,965) Income before equity in undistributed net income of subsidiaries (5,881) 62,268 135,716 Equity in undistributed net income of subsidiaries 209,139 (743,076) 31,649 Net income $ 203,258 $ (680,808) $ 167,365 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in Thousands) Fiscal Years Ended September 30, 2021 2020 2019 (dollars in thousands) Operating Activities Net income $ 203,258 $ (680,808) $ 167,365 Adjustments to reconcile net income to net cash (used in) provided by operating activities Depreciation and amortization 135 196 168 Stock-based compensation 3,494 3,705 4,582 Deferred income taxes 41 321 (227) Changes in: Other assets (1,139) (5,397) 1,367 Accrued interest and other liabilities (48) 223 268 Equity in undistributed net income of subsidiaries (209,139) 743,076 (31,649) Net cash (used in) provided by operating activities (3,398) 61,316 141,874 Financing Activities Common stock repurchased — (39,983) (94,351) Dividends paid (4,408) (42,456) (62,904) Net cash used in financing activities (4,408) (82,439) (157,255) Net decrease in cash and cash equivalents (7,806) (21,123) (15,381) Cash and cash equivalents, beginning of period 36,420 57,543 72,924 Cash and cash equivalents, end of period $ 28,614 $ 36,420 $ 57,543 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) | Oct. 26, 2021$ / shares | Sep. 30, 2021USD ($)poolsegment$ / shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($)$ / shares |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Dividends per share (in dollars per share) | $ / shares | $ 0.08 | $ 0.76 | $ 1.10 | |
Maturity period of loans and loan commitments | 5 years | |||
Number of portfolio pools | pool | 8 | |||
FDIC Indemnification, expected reimbursement rate (as a percent) | 80.00% | |||
FDIC, Clawback Liability, payment period following termination or maturity of agreement | 45 days | |||
Residential real estate loans in process of foreclosure | $ 600,000 | $ 500,000 | ||
Impairment of long-lived assets | 0 | 0 | $ 0 | |
Impairment of goodwill | 0 | 740,562,000 | 0 | |
Impairment of intangible assets | $ 0 | $ 1,800,000 | $ 0 | |
Subsequent Event | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Dividends per share (in dollars per share) | $ / shares | $ 0.05 | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maturity period of loans and loan commitments | 5 years | |||
Minimum | Buildings and building improvements | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Premises and equipment, useful life | 10 years | |||
Minimum | Furniture and equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Premises and equipment, useful life | 3 years | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maturity period of loans and loan commitments | 15 years | |||
Maximum | Buildings and building improvements | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Premises and equipment, useful life | 40 years | |||
Maximum | Furniture and equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Premises and equipment, useful life | 10 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Amortization Method and Estimated Lives of Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Core deposit | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 10 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 13 years |
Other intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 1 year 3 months |
Other intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 9 years 3 months 29 days |
New Accounting Standards - Narr
New Accounting Standards - Narrative (Details) $ in Thousands | 3 Months Ended | |||||||
Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($)pool | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Number of portfolio pools | pool | 8 | |||||||
Allowance for credit losses | $ 246,038 | [1] | $ 149,887 | [1] | $ 70,774 | $ 64,540 | ||
Cumulative effect adjustment | 1,201,479 | 1,162,933 | 1,900,249 | 1,840,551 | ||||
Net deferred tax assets | 88,861 | 47,709 | ||||||
Increase in common equity tier one capital | $ 129,500 | |||||||
Retained Earnings | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Cumulative effect adjustment | $ 13,170 | (57,169) | 657,475 | $ 553,014 | ||||
Cumulative effect adjustment related to ASU adoption | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Allowance for credit losses | 177,289 | |||||||
Cumulative effect adjustment | (132,919) | [2] | (182) | [3] | ||||
Remaining noncredit discount | 6,700 | |||||||
Cumulative effect adjustment related to ASU adoption | Retained Earnings | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Cumulative effect adjustment | (132,919) | [2] | $ (182) | [3] | ||||
Net deferred tax assets | 42,900 | |||||||
Accounting Standards Update 2016-13 | Cumulative effect adjustment related to ASU adoption | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Allowance for credit losses | 177,300 | |||||||
Accounting Standards Update 2016-13, Transfer Of Discounts On Previously Acquired Loans | Cumulative effect adjustment related to ASU adoption | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Allowance for credit losses | 1,500 | |||||||
Accounting Standards Update 2016-13, Changes From Incurred Loss Model To CECL Model | Cumulative effect adjustment related to ASU adoption | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Allowance for credit losses | $ 175,800 | |||||||
[1] | Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model. | |||||||
[2] | Cumulative effect adjustment related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020. For additional information, see Note 2. " New Accounting Pronouncements ". | |||||||
[3] | Cumulative effect adjustment relates to the adoption of ASU 2016-02, Leases (Topic 872) .and related ASUs on October 1, 2019. |
New Accounting Standards - Comp
New Accounting Standards - Composition of Loans and Allowance by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | $ 10,076,142 | |||||
Less: Unamortized discount on acquired loans | 0 | |||||
Unearned net deferred fees and costs and net loans in process | 0 | |||||
Financing receivable | $ 8,185,053 | 10,076,142 | ||||
Allowance for credit losses | (246,038) | [1] | (149,887) | [1] | $ (70,774) | $ (64,540) |
Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Financing receivable | 4,483,338 | 5,355,401 | ||||
Allowance for credit losses | (155,310) | (85,233) | (16,827) | (16,777) | ||
Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,722,696 | |||||
Financing receivable | 1,428,614 | 1,722,696 | ||||
Allowance for credit losses | (40,340) | (27,018) | (30,819) | (28,121) | ||
Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,165,038 | |||||
Financing receivable | 1,535,394 | 2,165,038 | ||||
Allowance for credit losses | (39,256) | (27,599) | (17,567) | (13,610) | ||
Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 730,812 | |||||
Financing receivable | 628,098 | 730,812 | ||||
Allowance for credit losses | (9,132) | (7,465) | (4,095) | (4,749) | ||
Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 102,195 | |||||
Financing receivable | 109,609 | 102,195 | ||||
Allowance for credit losses | (2,000) | (2,572) | $ (1,466) | $ (1,283) | ||
Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Construction and development | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 509,644 | |||||
Financing receivable | 394,712 | 509,644 | ||||
Allowance for credit losses | (20,075) | (7,012) | ||||
Owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,417,394 | |||||
Financing receivable | 1,357,715 | 1,417,394 | ||||
Allowance for credit losses | (18,223) | (20,530) | ||||
Non-owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,894,380 | |||||
Financing receivable | 2,191,848 | 2,894,380 | ||||
Allowance for credit losses | (112,134) | (50,965) | ||||
Multifamily residential real estate | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 533,983 | |||||
Financing receivable | 539,063 | 533,983 | ||||
Allowance for credit losses | $ (4,878) | (6,726) | ||||
Adoption of ASU 2016-13 as amended | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,498 | |||||
Less: Unamortized discount on acquired loans | 0 | |||||
Unearned net deferred fees and costs and net loans in process | 0 | |||||
Financing receivable | 1,498 | |||||
Allowance for credit losses | (177,289) | |||||
Adoption of ASU 2016-13 as amended | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | (117,928) | |||||
Adoption of ASU 2016-13 as amended | Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 55 | |||||
Allowance for credit losses | (24,360) | |||||
Adoption of ASU 2016-13 as amended | Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (85) | |||||
Allowance for credit losses | (32,938) | |||||
Adoption of ASU 2016-13 as amended | Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 23 | |||||
Allowance for credit losses | (2,595) | |||||
Adoption of ASU 2016-13 as amended | Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (20) | |||||
Allowance for credit losses | 532 | |||||
Adoption of ASU 2016-13 as amended | Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Adoption of ASU 2016-13 as amended | Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Adoption of ASU 2016-13 as amended | Construction and development | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | (11,963) | |||||
Adoption of ASU 2016-13 as amended | Owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 36 | |||||
Allowance for credit losses | (4,298) | |||||
Adoption of ASU 2016-13 as amended | Non-owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,497 | |||||
Allowance for credit losses | (98,986) | |||||
Adoption of ASU 2016-13 as amended | Multifamily residential real estate | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (8) | |||||
Allowance for credit losses | (2,681) | |||||
Adjusted Balance October 1, 2020 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 10,077,640 | |||||
Less: Unamortized discount on acquired loans | 0 | |||||
Unearned net deferred fees and costs and net loans in process | 0 | |||||
Financing receivable | 10,077,640 | |||||
Allowance for credit losses | (327,176) | |||||
Adjusted Balance October 1, 2020 | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | (203,161) | |||||
Adjusted Balance October 1, 2020 | Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,722,751 | |||||
Allowance for credit losses | (51,378) | |||||
Adjusted Balance October 1, 2020 | Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,164,953 | |||||
Allowance for credit losses | (60,537) | |||||
Adjusted Balance October 1, 2020 | Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 730,835 | |||||
Allowance for credit losses | (10,060) | |||||
Adjusted Balance October 1, 2020 | Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 102,175 | |||||
Allowance for credit losses | (2,040) | |||||
Adjusted Balance October 1, 2020 | Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Adjusted Balance October 1, 2020 | Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Adjusted Balance October 1, 2020 | Construction and development | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 509,644 | |||||
Allowance for credit losses | (18,975) | |||||
Adjusted Balance October 1, 2020 | Owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,417,430 | |||||
Allowance for credit losses | (24,828) | |||||
Adjusted Balance October 1, 2020 | Non-owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,895,877 | |||||
Allowance for credit losses | (149,951) | |||||
Adjusted Balance October 1, 2020 | Multifamily residential real estate | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 533,975 | |||||
Allowance for credit losses | (9,407) | |||||
Reported Balance at September 30, 2020 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 10,111,602 | |||||
Less: Unamortized discount on acquired loans | (8,215) | |||||
Unearned net deferred fees and costs and net loans in process | (27,245) | |||||
Financing receivable | 10,076,142 | |||||
Allowance for credit losses | (149,887) | |||||
Reported Balance at September 30, 2020 | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 5,274,941 | |||||
Allowance for credit losses | (84,496) | |||||
Reported Balance at September 30, 2020 | Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,724,350 | |||||
Allowance for credit losses | (27,018) | |||||
Reported Balance at September 30, 2020 | Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,181,656 | |||||
Allowance for credit losses | (27,599) | |||||
Reported Balance at September 30, 2020 | Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 830,102 | |||||
Allowance for credit losses | (8,202) | |||||
Reported Balance at September 30, 2020 | Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | (2,572) | |||||
Reported Balance at September 30, 2020 | Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 63,206 | |||||
Reported Balance at September 30, 2020 | Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 37,347 | |||||
Reclassification | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Less: Unamortized discount on acquired loans | 0 | |||||
Unearned net deferred fees and costs and net loans in process | 0 | |||||
Financing receivable | 0 | |||||
Allowance for credit losses | 0 | |||||
Reclassification | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (5,274,941) | |||||
Allowance for credit losses | (84,496) | |||||
Reclassification | Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | 0 | |||||
Reclassification | Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Allowance for credit losses | 0 | |||||
Reclassification | Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (97,099) | |||||
Allowance for credit losses | (737) | |||||
Reclassification | Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 100,553 | |||||
Allowance for credit losses | 0 | |||||
Reclassification | Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (63,206) | |||||
Reclassification | Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (37,347) | |||||
Reclassification | Construction and development | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 512,539 | |||||
Allowance for credit losses | 7,012 | |||||
Reclassification | Owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,420,061 | |||||
Allowance for credit losses | 20,530 | |||||
Reclassification | Non-owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 2,902,612 | |||||
Allowance for credit losses | 50,965 | |||||
Reclassification | Multifamily residential real estate | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 536,828 | |||||
Allowance for credit losses | 6,726 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (35,460) | |||||
Less: Unamortized discount on acquired loans | 8,215 | |||||
Unearned net deferred fees and costs and net loans in process | 27,245 | |||||
Financing receivable | 0 | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Agriculture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (1,654) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Commercial non-real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (16,618) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Residential real estate ³ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (2,191) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Consumer and other ⁴ | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 1,642 | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Consumer | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Construction and development | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (2,895) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (2,667) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Non-owner-occupied CRE | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (8,232) | |||||
Allowance for credit losses | 0 | |||||
Unamortized Discounts, Unearned Net Deferred Fees and Net Loans and Process Included in Amortized Cost | Multifamily residential real estate | Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total financing receivables, gross | (2,845) | |||||
Allowance for credit losses | $ 0 | |||||
[1] | Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model. |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Reserve balances | $ 0 | $ 0 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 2,336,519 | $ 1,726,962 |
Gross Unrealized Gains | 25,913 | 47,790 |
Gross Unrealized Losses | (19,230) | (126) |
Securities available for sale | 2,343,202 | 1,774,626 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 367,751 | 0 |
Gross Unrealized Gains | 37 | 0 |
Gross Unrealized Losses | (3,176) | 0 |
Estimated Fair Value | 364,612 | 0 |
Accrued interest | 5,000 | 4,500 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 99,093 | 49,924 |
Gross Unrealized Gains | 0 | 228 |
Gross Unrealized Losses | (306) | 0 |
Securities available for sale | 98,787 | 50,152 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 27,782 | 0 |
Gross Unrealized Gains | 7 | 0 |
Gross Unrealized Losses | (250) | 0 |
Estimated Fair Value | 27,539 | 0 |
U.S. Agency securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 24,976 | 24,974 |
Gross Unrealized Gains | 0 | 86 |
Gross Unrealized Losses | (928) | 0 |
Securities available for sale | 24,048 | 25,060 |
Mortgage backed-securities | Government National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 284,757 | 485,689 |
Gross Unrealized Gains | 5,303 | 11,481 |
Gross Unrealized Losses | (386) | (43) |
Securities available for sale | 289,674 | 497,127 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 55,698 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (298) | 0 |
Estimated Fair Value | 55,400 | 0 |
Mortgage backed-securities | Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,033,335 | 578,650 |
Gross Unrealized Gains | 9,558 | 18,919 |
Gross Unrealized Losses | (10,391) | (9) |
Securities available for sale | 1,032,502 | 597,560 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 130,272 | 0 |
Gross Unrealized Gains | 30 | 0 |
Gross Unrealized Losses | (789) | 0 |
Estimated Fair Value | 129,513 | 0 |
Mortgage backed-securities | Federal National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 575,336 | 287,842 |
Gross Unrealized Gains | 3,883 | 7,788 |
Gross Unrealized Losses | (6,011) | (16) |
Securities available for sale | 573,208 | 295,614 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 84,002 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (627) | 0 |
Estimated Fair Value | 83,375 | 0 |
Mortgage backed-securities | Small Business Assistance Program | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 235,402 | 244,653 |
Gross Unrealized Gains | 5,679 | 7,884 |
Gross Unrealized Losses | (1,204) | (58) |
Securities available for sale | 239,877 | 252,479 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 66,547 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,212) | 0 |
Estimated Fair Value | 65,335 | 0 |
States and political subdivision securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 43,614 | 54,224 |
Gross Unrealized Gains | 940 | 1,356 |
Gross Unrealized Losses | (4) | 0 |
Securities available for sale | 44,550 | 55,580 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 3,450 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 3,450 | 0 |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 39,000 | 0 |
Gross Unrealized Gains | 519 | 0 |
Gross Unrealized Losses | 0 | 0 |
Securities available for sale | 39,519 | 0 |
Other | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,006 | 1,006 |
Gross Unrealized Gains | 31 | 48 |
Gross Unrealized Losses | 0 | 0 |
Securities available for sale | $ 1,037 | $ 1,054 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Amortized Cost | ||
Due in one year or less | $ 15,745 | $ 67,131 |
Due after one year through five years | 131,241 | 51,779 |
Due after five years through ten years | 59,697 | 10,212 |
Due after ten years | 0 | 0 |
Amortized Cost | 206,683 | 129,122 |
Estimated Fair Value | ||
Due in one year or less | 15,808 | 67,456 |
Due after one year through five years | 131,412 | 52,694 |
Due after five years through ten years | 59,684 | 10,642 |
Due after ten years | 0 | 0 |
Estimated Fair Value | 206,904 | 130,792 |
Amortized Cost | 2,336,519 | 1,726,962 |
Securities available for sale | 2,343,202 | 1,774,626 |
Securities without contractual maturities, Amortized Cost | 1,006 | 1,006 |
Securities without contractual maturities, Fair Value | 1,037 | 1,054 |
Amortized Cost | ||
Due in one year or less | 150 | 0 |
Due after one year through five years | 500 | 0 |
Due after five years through ten years | 30,582 | 0 |
Due after ten years | 0 | 0 |
Amortized Cost | 31,232 | 0 |
Estimated Fair Value | ||
Due in one year or less | 150 | 0 |
Due after one year through five years | 500 | 0 |
Due after five years through ten years | 30,339 | 0 |
Due after ten years | 0 | 0 |
Estimated Fair Value | 30,989 | 0 |
Securities held to maturity | 367,751 | 0 |
Estimated Fair Value | 364,612 | 0 |
Securities without contractual maturities | 0 | 0 |
Securities without contractual maturities | 0 | 0 |
Mortgage-backed securities | ||
Estimated Fair Value | ||
Amortized Cost | 2,128,830 | 1,596,834 |
Securities available for sale | 2,135,261 | 1,642,780 |
Estimated Fair Value | ||
Securities held to maturity | 336,519 | 0 |
Estimated Fair Value | $ 333,623 | $ 0 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2021USD ($)security | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of AFS securities | $ 0 | $ 151,899,000 | $ 175,007,000 |
Gross gains (pre-tax) | 0 | 7,900,000 | 300,000 |
Gross losses (pre-tax) | 0 | 0 | 500,000 |
Proceeds from sales of debt securities held to maturity | 0 | 0 | 0 |
Realized gains (losses) on securities held to maturity | $ 0 | $ 0 | 0 |
Percentage of investment portfolio in continuous loss position (as a percent) | 55.00% | 6.00% | |
Allowance for credit loss | $ 0 | ||
Other-than-temporary impairment losses recognized in earnings | 0 | $ 0 | $ 0 |
Securities pledged as collateral | $ 1,260,000,000 | $ 1,100,000,000 | |
Number of securities in an unrealized loss position (securities) | security | 118 | 18 | |
Number of held to maturity securities in an unrealized loss position (securities) | security | 26 | 0 |
Securities - Schedule of Gross
Securities - Schedule of Gross Unrealized Losses on Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Securities available for sale | ||
Less than 12 months, Estimated Fair Value | $ 1,252,853 | $ 71,547 |
12 months or more, Estimated Fair Value | 24,822 | 27,897 |
Estimated Fair Value | 1,277,675 | 99,444 |
Less than 12 months, Unrealized Losses | (18,944) | (103) |
12 months or more, Unrealized Losses | (286) | (23) |
Unrealized Losses | (19,230) | (126) |
Securities held to maturity | ||
Less than 12 months, Estimated Fair Value | 337,634 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 337,634 | 0 |
Less than 12 months, Unrealized Losses | (3,176) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (3,176) | 0 |
U.S. Treasury securities | ||
Securities available for sale | ||
Less than 12 months, Estimated Fair Value | 98,787 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 98,787 | 0 |
Less than 12 months, Unrealized Losses | (306) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (306) | 0 |
Securities held to maturity | ||
Less than 12 months, Estimated Fair Value | 13,819 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 13,819 | 0 |
Less than 12 months, Unrealized Losses | (250) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (250) | 0 |
U.S. Agency securities | ||
Securities available for sale | ||
Less than 12 months, Estimated Fair Value | 24,048 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 24,048 | 0 |
Less than 12 months, Unrealized Losses | (928) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (928) | 0 |
Mortgage-backed securities | ||
Securities available for sale | ||
Less than 12 months, Estimated Fair Value | 1,127,522 | 71,547 |
12 months or more, Estimated Fair Value | 24,822 | 27,897 |
Estimated Fair Value | 1,152,344 | 99,444 |
Less than 12 months, Unrealized Losses | (17,706) | (103) |
12 months or more, Unrealized Losses | (286) | (23) |
Unrealized Losses | (17,992) | (126) |
Securities held to maturity | ||
Less than 12 months, Estimated Fair Value | 323,815 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 323,815 | 0 |
Less than 12 months, Unrealized Losses | (2,926) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (2,926) | 0 |
States and political subdivision securities | ||
Securities available for sale | ||
Less than 12 months, Estimated Fair Value | 2,496 | |
12 months or more, Estimated Fair Value | 0 | |
Estimated Fair Value | 2,496 | |
Less than 12 months, Unrealized Losses | (4) | |
12 months or more, Unrealized Losses | 0 | |
Unrealized Losses | (4) | |
Securities held to maturity | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
12 months or more, Estimated Fair Value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | $ 0 | $ 0 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Composition of Loans at Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 8,185,053 | $ 10,076,142 |
Less: Fair Value Option Loans | 524,533 | 655,185 |
Less: Guaranteed Loans ¹ | 334,993 | 862,884 |
Loans at Amortized Cost | 7,325,527 | 8,558,073 |
Loan held for sale | 2,904 | 12,371 |
Total commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 4,483,338 | 5,355,401 |
Less: Fair Value Option Loans | 318,109 | 396,210 |
Less: Guaranteed Loans ¹ | 75,205 | 75,870 |
Loans at Amortized Cost | 4,090,024 | 4,883,321 |
Total commercial real estate | Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 394,712 | 509,644 |
Less: Fair Value Option Loans | 0 | 0 |
Less: Guaranteed Loans ¹ | 0 | 0 |
Loans at Amortized Cost | 394,712 | 509,644 |
Total commercial real estate | Owner-occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,357,715 | 1,417,394 |
Less: Fair Value Option Loans | 91,793 | 109,097 |
Less: Guaranteed Loans ¹ | 54,133 | 48,468 |
Loans at Amortized Cost | 1,211,789 | 1,259,829 |
Total commercial real estate | Non-owner-occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,191,848 | 2,894,380 |
Less: Fair Value Option Loans | 224,863 | 283,266 |
Less: Guaranteed Loans ¹ | 21,072 | 27,402 |
Loans at Amortized Cost | 1,945,913 | 2,583,712 |
Total commercial real estate | Multifamily residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 539,063 | 533,983 |
Less: Fair Value Option Loans | 1,453 | 3,847 |
Less: Guaranteed Loans ¹ | 0 | 0 |
Loans at Amortized Cost | 537,610 | 530,136 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,428,614 | 1,722,696 |
Less: Fair Value Option Loans | 96,393 | 129,041 |
Less: Guaranteed Loans ¹ | 19,667 | 42,353 |
Loans at Amortized Cost | 1,312,554 | 1,551,302 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,535,394 | 2,165,038 |
Less: Fair Value Option Loans | 110,031 | 129,934 |
Less: Guaranteed Loans ¹ | 239,850 | 744,371 |
Loans at Amortized Cost | 1,185,513 | 1,290,733 |
Residential real estate ³ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 628,098 | 730,812 |
Less: Fair Value Option Loans | 0 | 0 |
Less: Guaranteed Loans ¹ | 271 | 290 |
Loans at Amortized Cost | 627,827 | 730,522 |
Consumer and other ⁴ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 109,609 | 102,195 |
Less: Fair Value Option Loans | 0 | 0 |
Less: Guaranteed Loans ¹ | 0 | 0 |
Loans at Amortized Cost | $ 109,609 | $ 102,195 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, fair value option | $ 524,533 | $ 655,185 | ||
Fair value loans | 655,200 | |||
Specific reserves included in the allowance for loan losses for TDRs | 14,300 | 11,000 | ||
Interest income | 8,800 | |||
Troubled debt restructuring, commitments to lend additional funds to borrowers | 600 | 0 | ||
Transfers out of troubled debt restructuring status | 0 | 300 | $ 0 | |
Provision for credit losses on loans | (33,588) | 118,204 | 41,506 | |
Reserve for unfunded loan commitments | 1,300 | 2,400 | ||
(Reversal of) provision for unfunded commitments | $ (1,100) | $ 1,900 | $ 0 | |
Cumulative effect adjustment related to ASU adoption | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses on loans | $ 177,300 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | $ 7,660,520 | $ 9,448,197 |
Nonaccrual loans | 185,034 | 322,146 |
Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 4,165,229 | 4,873,003 |
Nonaccrual loans | 34,930 | 73,146 |
Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 394,712 | |
Nonaccrual loans | 20 | |
Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,265,922 | |
Nonaccrual loans | 21,628 | |
Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,966,985 | |
Nonaccrual loans | 6,495 | |
Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 537,610 | |
Nonaccrual loans | 6,787 | |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,332,221 | 1,595,039 |
Nonaccrual loans | 124,513 | 217,642 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,425,363 | 2,051,663 |
Nonaccrual loans | 19,303 | 26,843 |
Residential real estate ³ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 628,098 | 828,054 |
Nonaccrual loans | 6,254 | 4,441 |
Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 109,609 | 100,438 |
Nonaccrual loans | 34 | 74 |
Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 7,468,187 | 9,051,121 |
Current or Less Than 30 Days Past Due | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 4,129,821 | 4,790,963 |
Current or Less Than 30 Days Past Due | Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 394,692 | |
Current or Less Than 30 Days Past Due | Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,243,816 | |
Current or Less Than 30 Days Past Due | Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,960,490 | |
Current or Less Than 30 Days Past Due | Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 530,823 | |
Current or Less Than 30 Days Past Due | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,204,978 | 1,317,377 |
Current or Less Than 30 Days Past Due | Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,402,902 | 2,021,308 |
Current or Less Than 30 Days Past Due | Residential real estate ³ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 621,019 | 821,154 |
Current or Less Than 30 Days Past Due | Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 109,467 | 100,319 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 7,258 | 74,930 |
30-89 Days Past Due | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 478 | 8,894 |
30-89 Days Past Due | Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 0 | |
30-89 Days Past Due | Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 478 | |
30-89 Days Past Due | Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 0 | |
30-89 Days Past Due | Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 0 | |
30-89 Days Past Due | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 2,730 | 60,020 |
30-89 Days Past Due | Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 3,158 | 3,512 |
30-89 Days Past Due | Residential real estate ³ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 825 | 2,459 |
30-89 Days Past Due | Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 67 | 45 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 185,075 | 322,146 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 34,930 | 73,146 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 20 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 21,628 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 6,495 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 6,787 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 124,513 | 217,642 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 19,303 | 26,843 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential real estate ³ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 6,254 | 4,441 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 75 | 74 |
Not past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 7,660,520 | 9,448,197 |
Not past due | Total commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 4,165,229 | 4,873,003 |
Not past due | Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 394,712 | |
Not past due | Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,265,922 | |
Not past due | Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,966,985 | |
Not past due | Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 537,610 | |
Not past due | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,332,221 | 1,595,039 |
Not past due | Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 1,425,363 | 2,051,663 |
Not past due | Residential real estate ³ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | 628,098 | 828,054 |
Not past due | Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable | $ 109,609 | $ 100,438 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of the Company's Nonaccrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 185,034 | $ 322,146 |
90+ Days Past Due and Still Accruing | 41 | |
Nonaccrual Loans with No Related ACL | 58,863 | |
Accrued Interest Written Off on Nonaccrual Loans | 3,043 | |
Total commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 34,930 | 73,146 |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 15,917 | |
Accrued Interest Written Off on Nonaccrual Loans | 2,108 | |
Total commercial real estate | Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 20 | |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 0 | |
Accrued Interest Written Off on Nonaccrual Loans | 115 | |
Total commercial real estate | Owner-occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 21,628 | |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 7,587 | |
Accrued Interest Written Off on Nonaccrual Loans | 31 | |
Total commercial real estate | Non-owner-occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 6,495 | |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 1,542 | |
Accrued Interest Written Off on Nonaccrual Loans | 1,922 | |
Total commercial real estate | Multifamily residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 6,787 | |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 6,788 | |
Accrued Interest Written Off on Nonaccrual Loans | 40 | |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 124,513 | 217,642 |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 36,997 | |
Accrued Interest Written Off on Nonaccrual Loans | 821 | |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 19,303 | 26,843 |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 5,862 | |
Accrued Interest Written Off on Nonaccrual Loans | 36 | |
Residential real estate ³ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 6,254 | 4,441 |
90+ Days Past Due and Still Accruing | 0 | |
Nonaccrual Loans with No Related ACL | 87 | |
Accrued Interest Written Off on Nonaccrual Loans | 77 | |
Consumer and other ⁴ | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 34 | $ 74 |
90+ Days Past Due and Still Accruing | 41 | |
Nonaccrual Loans with No Related ACL | 0 | |
Accrued Interest Written Off on Nonaccrual Loans | $ 1 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of the Composition of the Loan Portfolio by Internal Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | $ 2,077,832 | |
2020 | 1,355,986 | |
2019 | 984,777 | |
2018 | 733,514 | |
2017 | 520,860 | |
Prior to 2017 | 524,441 | |
Revolving Loans | 1,462,839 | |
Revolving Loans Converted to Term Loans | 271 | |
Financing receivable | 7,660,520 | $ 9,448,197 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,873,354 | |
2020 | 1,282,810 | |
2019 | 873,229 | |
2018 | 538,009 | |
2017 | 419,177 | |
Prior to 2017 | 477,195 | |
Revolving Loans | 1,288,794 | |
Revolving Loans Converted to Term Loans | 271 | |
Financing receivable | 6,752,839 | 7,789,080 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 59,127 | |
2020 | 41,283 | |
2019 | 58,639 | |
2018 | 89,294 | |
2017 | 33,110 | |
Prior to 2017 | 19,310 | |
Revolving Loans | 43,446 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 344,209 | 945,195 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 143,242 | |
2020 | 25,105 | |
2019 | 50,258 | |
2018 | 86,934 | |
2017 | 65,723 | |
Prior to 2017 | 23,981 | |
Revolving Loans | 129,821 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 525,064 | 685,959 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 2,109 | |
2020 | 6,788 | |
2019 | 2,651 | |
2018 | 19,277 | |
2017 | 2,850 | |
Prior to 2017 | 3,955 | |
Revolving Loans | 778 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 38,408 | 27,963 |
Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | |
Total commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,199,984 | |
2020 | 858,992 | |
2019 | 659,404 | |
2018 | 524,238 | |
2017 | 378,809 | |
Prior to 2017 | 372,566 | |
Revolving Loans | 171,236 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 4,165,229 | 4,873,003 |
Total commercial real estate | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 190,232 | |
2020 | 63,253 | |
2019 | 66,631 | |
2018 | 8,699 | |
2017 | 698 | |
Prior to 2017 | 292 | |
Revolving Loans | 64,907 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 394,712 | |
Total commercial real estate | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 367,662 | |
2020 | 346,623 | |
2019 | 155,917 | |
2018 | 107,869 | |
2017 | 119,494 | |
Prior to 2017 | 122,083 | |
Revolving Loans | 46,274 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,265,922 | |
Total commercial real estate | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 413,101 | |
2020 | 346,384 | |
2019 | 323,911 | |
2018 | 350,552 | |
2017 | 253,266 | |
Prior to 2017 | 220,931 | |
Revolving Loans | 58,840 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,966,985 | |
Total commercial real estate | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 228,989 | |
2020 | 102,732 | |
2019 | 112,945 | |
2018 | 57,118 | |
2017 | 5,351 | |
Prior to 2017 | 29,260 | |
Revolving Loans | 1,215 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 537,610 | |
Total commercial real estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,073,128 | |
2020 | 814,629 | |
2019 | 570,146 | |
2018 | 408,598 | |
2017 | 321,218 | |
Prior to 2017 | 343,294 | |
Revolving Loans | 146,898 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 3,677,911 | 4,062,814 |
Total commercial real estate | Pass [Member] | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 181,518 | |
2020 | 63,253 | |
2019 | 64,501 | |
2018 | 8,699 | |
2017 | 698 | |
Prior to 2017 | 292 | |
Revolving Loans | 64,907 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 383,868 | |
Total commercial real estate | Pass [Member] | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 352,292 | |
2020 | 341,767 | |
2019 | 147,407 | |
2018 | 91,080 | |
2017 | 103,741 | |
Prior to 2017 | 114,949 | |
Revolving Loans | 46,110 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,197,346 | |
Total commercial real estate | Pass [Member] | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 310,329 | |
2020 | 314,159 | |
2019 | 245,293 | |
2018 | 252,507 | |
2017 | 211,459 | |
Prior to 2017 | 199,345 | |
Revolving Loans | 34,666 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,567,758 | |
Total commercial real estate | Pass [Member] | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 228,989 | |
2020 | 95,450 | |
2019 | 112,945 | |
2018 | 56,312 | |
2017 | 5,320 | |
Prior to 2017 | 28,708 | |
Revolving Loans | 1,215 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 528,939 | |
Total commercial real estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 34,896 | |
2020 | 29,758 | |
2019 | 51,600 | |
2018 | 71,512 | |
2017 | 25,849 | |
Prior to 2017 | 14,949 | |
Revolving Loans | 90 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 228,654 | 577,399 |
Total commercial real estate | Special Mention [Member] | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 2,543 | |
2020 | 0 | |
2019 | 195 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 2,738 | |
Total commercial real estate | Special Mention [Member] | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 7,866 | |
2020 | 1,533 | |
2019 | 4,297 | |
2018 | 5,749 | |
2017 | 2,703 | |
Prior to 2017 | 1,113 | |
Revolving Loans | 90 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 23,351 | |
Total commercial real estate | Special Mention [Member] | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 24,487 | |
2020 | 28,225 | |
2019 | 47,108 | |
2018 | 65,763 | |
2017 | 23,115 | |
Prior to 2017 | 13,597 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 202,295 | |
Total commercial real estate | Special Mention [Member] | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 31 | |
Prior to 2017 | 239 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 270 | |
Total commercial real estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 91,599 | |
2020 | 7,817 | |
2019 | 35,691 | |
2018 | 44,128 | |
2017 | 29,775 | |
Prior to 2017 | 14,323 | |
Revolving Loans | 24,248 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 247,581 | 229,467 |
Total commercial real estate | Substandard [Member] | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 6,171 | |
2020 | 0 | |
2019 | 1,935 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 8,106 | |
Total commercial real estate | Substandard [Member] | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 7,504 | |
2020 | 3,323 | |
2019 | 2,246 | |
2018 | 11,040 | |
2017 | 11,083 | |
Prior to 2017 | 6,021 | |
Revolving Loans | 74 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 41,291 | |
Total commercial real estate | Substandard [Member] | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 77,924 | |
2020 | 4,000 | |
2019 | 31,510 | |
2018 | 32,282 | |
2017 | 18,692 | |
Prior to 2017 | 7,989 | |
Revolving Loans | 24,174 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 196,571 | |
Total commercial real estate | Substandard [Member] | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 494 | |
2019 | 0 | |
2018 | 806 | |
2017 | 0 | |
Prior to 2017 | 313 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,613 | |
Total commercial real estate | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 361 | |
2020 | 6,788 | |
2019 | 1,967 | |
2018 | 0 | |
2017 | 1,967 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 11,083 | 3,323 |
Total commercial real estate | Doubtful [Member] | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 0 | |
Total commercial real estate | Doubtful [Member] | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 1,967 | |
2018 | 0 | |
2017 | 1,967 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 3,934 | |
Total commercial real estate | Doubtful [Member] | Non-owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 361 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 361 | |
Total commercial real estate | Doubtful [Member] | Multifamily residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 6,788 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 6,788 | |
Total commercial real estate | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | |
Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 286,115 | |
2020 | 151,962 | |
2019 | 85,296 | |
2018 | 125,966 | |
2017 | 91,137 | |
Prior to 2017 | 25,105 | |
Revolving Loans | 566,640 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,332,221 | 1,595,039 |
Agriculture | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 231,671 | |
2020 | 130,681 | |
2019 | 68,677 | |
2018 | 55,087 | |
2017 | 50,028 | |
Prior to 2017 | 17,559 | |
Revolving Loans | 453,992 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,007,695 | 968,875 |
Agriculture | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 23,159 | |
2020 | 10,736 | |
2019 | 3,404 | |
2018 | 16,389 | |
2017 | 4,825 | |
Prior to 2017 | 3,300 | |
Revolving Loans | 26,554 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 88,367 | 265,714 |
Agriculture | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 29,537 | |
2020 | 10,545 | |
2019 | 12,574 | |
2018 | 35,213 | |
2017 | 35,401 | |
Prior to 2017 | 4,246 | |
Revolving Loans | 85,750 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 213,266 | 348,910 |
Agriculture | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,748 | |
2020 | 0 | |
2019 | 641 | |
2018 | 19,277 | |
2017 | 883 | |
Prior to 2017 | 0 | |
Revolving Loans | 344 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 22,893 | 11,540 |
Agriculture | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 411,281 | |
2020 | 170,697 | |
2019 | 169,588 | |
2018 | 44,420 | |
2017 | 28,091 | |
Prior to 2017 | 34,349 | |
Revolving Loans | 566,937 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,425,363 | 2,051,663 |
Commercial non-real estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 388,893 | |
2020 | 163,792 | |
2019 | 165,759 | |
2018 | 36,469 | |
2017 | 25,612 | |
Prior to 2017 | 28,525 | |
Revolving Loans | 531,277 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 1,340,327 | 1,851,323 |
Commercial non-real estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 318 | |
2020 | 611 | |
2019 | 2,622 | |
2018 | 1,137 | |
2017 | 2,417 | |
Prior to 2017 | 821 | |
Revolving Loans | 16,259 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 24,185 | 94,401 |
Commercial non-real estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 22,070 | |
2020 | 6,294 | |
2019 | 1,164 | |
2018 | 6,814 | |
2017 | 62 | |
Prior to 2017 | 1,048 | |
Revolving Loans | 18,967 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 56,419 | 94,316 |
Commercial non-real estate | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 43 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 3,955 | |
Revolving Loans | 434 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 4,432 | 11,623 |
Commercial non-real estate | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | |
Residential real estate ³ | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 154,295 | |
2020 | 163,959 | |
2019 | 54,667 | |
2018 | 37,350 | |
2017 | 22,281 | |
Prior to 2017 | 91,850 | |
Revolving Loans | 103,425 | |
Revolving Loans Converted to Term Loans | 271 | |
Financing receivable | 628,098 | 828,054 |
Residential real estate ³ | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 153,505 | |
2020 | 163,337 | |
2019 | 52,833 | |
2018 | 36,323 | |
2017 | 21,777 | |
Prior to 2017 | 87,246 | |
Revolving Loans | 102,039 | |
Revolving Loans Converted to Term Loans | 271 | |
Financing receivable | 617,331 | 806,436 |
Residential real estate ³ | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 754 | |
2020 | 178 | |
2019 | 1,013 | |
2018 | 256 | |
2017 | 19 | |
Prior to 2017 | 240 | |
Revolving Loans | 543 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 3,003 | 6,972 |
Residential real estate ³ | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 36 | |
2020 | 444 | |
2019 | 821 | |
2018 | 771 | |
2017 | 485 | |
Prior to 2017 | 4,364 | |
Revolving Loans | 843 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 7,764 | 13,173 |
Residential real estate ³ | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 0 | 1,473 |
Residential real estate ³ | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | 0 | |
Consumer and other ⁴ | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 26,157 | |
2020 | 10,376 | |
2019 | 15,822 | |
2018 | 1,540 | |
2017 | 542 | |
Prior to 2017 | 571 | |
Revolving Loans | 54,601 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 109,609 | 100,438 |
Consumer and other ⁴ | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 26,157 | |
2020 | 10,371 | |
2019 | 15,814 | |
2018 | 1,532 | |
2017 | 542 | |
Prior to 2017 | 571 | |
Revolving Loans | 54,588 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 109,575 | 99,632 |
Consumer and other ⁴ | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 0 | 709 |
Consumer and other ⁴ | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 5 | |
2019 | 8 | |
2018 | 8 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 13 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | 34 | 93 |
Consumer and other ⁴ | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Financing receivable | $ 0 | 4 |
Consumer and other ⁴ | Unlikely to be Collected Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 209,762 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 223,173 | |
Impaired Financing Receivable, Related Allowance | 42,993 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 503,199 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 577,774 | |
Total Recorded Investment, Impaired Loans | 712,961 | |
Total Unpaid Principal Balance, Impaired Loans | 800,947 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 592,434 | $ 300,836 |
Impaired Financing Receivable, Interest Income, Accrual Method | 39,900 | 17,653 |
Total commercial real estate | ||
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 111,121 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 114,034 | |
Impaired Financing Receivable, Related Allowance | 25,087 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 121,380 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 161,211 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 137,017 | 42,374 |
Impaired Financing Receivable, Interest Income, Accrual Method | 8,528 | 2,339 |
Agriculture | ||
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 53,052 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 55,145 | |
Impaired Financing Receivable, Related Allowance | 8,151 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 308,734 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 332,272 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 355,719 | 223,146 |
Impaired Financing Receivable, Interest Income, Accrual Method | 22,927 | 13,093 |
Commercial non-real estate | ||
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 39,821 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 47,571 | |
Impaired Financing Receivable, Related Allowance | 7,822 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 66,542 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 75,365 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 89,152 | 28,196 |
Impaired Financing Receivable, Interest Income, Accrual Method | 7,745 | 1,791 |
Residential real estate ³ | ||
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,670 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 6,314 | |
Impaired Financing Receivable, Related Allowance | 1,903 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,543 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 8,818 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 10,408 | 6,889 |
Impaired Financing Receivable, Interest Income, Accrual Method | 691 | 410 |
Consumer and other ⁴ | ||
With an allowance for credit losses recorded: | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 98 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 109 | |
Impaired Financing Receivable, Related Allowance | 30 | |
With no allowance for credit losses recorded: | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 108 | |
Average recorded investment and interest income recognized on impaired loans: | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 138 | 231 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 9 | $ 20 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Schedule of Acquired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 26,047 | $ 34,973 |
Accretion | (6,869) | (9,202) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications (to) from Nonaccretable Difference | (3,790) | 276 |
Balance at end of period | $ 15,388 | $ 26,047 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Summary of Troubled Debt Restructurings on Accruing and Nonaccrual Financing Receivables (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | |
Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 49,104 | $ 35,205 | |
Financing receivable, modifications, number of contracts | contract | 5 | 12 | 22 |
Financing receivable, modifications, pre-modification recorded investment | $ 20,767 | $ 24,982 | $ 28,636 |
Financing receivable, modifications, post-modification recorded investment | $ 20,767 | $ 24,982 | $ 28,636 |
Change in recorded investment due to principal paydown at time of modification, number of contracts | contract | 0 | 0 | 0 |
Change in recorded investment due to principal paydown at time of modification, pre-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to principal paydown at time of modification, post-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to chargeoffs at time of modification, number of contracts | contract | 0 | 0 | 0 |
Change in recorded investment due to chargeoffs at time of modification, pre-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to chargeoffs at time of modification, post-modification | 0 | 0 | $ 0 |
Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 33,749 | $ 62,792 | |
Financing receivable, modifications, number of contracts | contract | 16 | 18 | 12 |
Financing receivable, modifications, pre-modification recorded investment | $ 21,772 | $ 31,775 | $ 10,383 |
Financing receivable, modifications, post-modification recorded investment | $ 21,772 | $ 31,775 | $ 10,383 |
Change in recorded investment due to principal paydown at time of modification, number of contracts | contract | 0 | 0 | 0 |
Change in recorded investment due to principal paydown at time of modification, pre-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to principal paydown at time of modification, post-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to chargeoffs at time of modification, number of contracts | contract | 0 | 0 | 0 |
Change in recorded investment due to chargeoffs at time of modification, pre-modification | $ 0 | $ 0 | $ 0 |
Change in recorded investment due to chargeoffs at time of modification, post-modification | 0 | 0 | $ 0 |
Total commercial real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 14,995 | $ 23,215 | |
Financing receivable, modifications, number of contracts | contract | 2 | 4 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 11,058 | $ 17,586 | $ 15,466 |
Financing receivable, modifications, post-modification recorded investment | 11,058 | 17,586 | $ 15,466 |
Total commercial real estate | Accruing | Construction and development | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 0 | ||
Financing receivable, modifications, number of contracts | contract | 0 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 0 | ||
Financing receivable, modifications, post-modification recorded investment | 0 | ||
Total commercial real estate | Accruing | Owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 3,322 | ||
Financing receivable, modifications, number of contracts | contract | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 627 | ||
Financing receivable, modifications, post-modification recorded investment | 627 | ||
Total commercial real estate | Accruing | Non-owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 11,673 | ||
Financing receivable, modifications, number of contracts | contract | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 10,431 | ||
Financing receivable, modifications, post-modification recorded investment | 10,431 | ||
Total commercial real estate | Accruing | Multifamily residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 0 | ||
Financing receivable, modifications, number of contracts | contract | 0 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 0 | ||
Financing receivable, modifications, post-modification recorded investment | 0 | ||
Total commercial real estate | Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 14,946 | $ 11,913 | |
Financing receivable, modifications, number of contracts | contract | 4 | 1 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 12,286 | $ 2,216 | $ 882 |
Financing receivable, modifications, post-modification recorded investment | 12,286 | 2,216 | $ 882 |
Total commercial real estate | Financing Receivables, Nonaccrual [Member] | Construction and development | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 20 | ||
Financing receivable, modifications, number of contracts | contract | 0 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 0 | ||
Financing receivable, modifications, post-modification recorded investment | 0 | ||
Total commercial real estate | Financing Receivables, Nonaccrual [Member] | Owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 14,555 | ||
Financing receivable, modifications, number of contracts | contract | 3 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 11,925 | ||
Financing receivable, modifications, post-modification recorded investment | 11,925 | ||
Total commercial real estate | Financing Receivables, Nonaccrual [Member] | Non-owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 371 | ||
Financing receivable, modifications, number of contracts | contract | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 361 | ||
Financing receivable, modifications, post-modification recorded investment | 361 | ||
Total commercial real estate | Financing Receivables, Nonaccrual [Member] | Multifamily residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 0 | ||
Financing receivable, modifications, number of contracts | contract | 0 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 0 | ||
Financing receivable, modifications, post-modification recorded investment | 0 | ||
Agriculture | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 29,996 | $ 2,976 | |
Financing receivable, modifications, number of contracts | contract | 2 | 2 | 16 |
Financing receivable, modifications, pre-modification recorded investment | $ 9,506 | $ 993 | $ 11,537 |
Financing receivable, modifications, post-modification recorded investment | 9,506 | 993 | $ 11,537 |
Agriculture | Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 9,275 | $ 45,971 | |
Financing receivable, modifications, number of contracts | contract | 9 | 12 | 9 |
Financing receivable, modifications, pre-modification recorded investment | $ 4,273 | $ 27,807 | $ 5,802 |
Financing receivable, modifications, post-modification recorded investment | 4,273 | 27,807 | $ 5,802 |
Commercial non-real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 3,922 | $ 8,734 | |
Financing receivable, modifications, number of contracts | contract | 1 | 5 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 203 | $ 6,353 | $ 1,445 |
Financing receivable, modifications, post-modification recorded investment | 203 | 6,353 | $ 1,445 |
Commercial non-real estate | Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 9,467 | $ 4,803 | |
Financing receivable, modifications, number of contracts | contract | 3 | 5 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 5,213 | $ 1,752 | $ 3,699 |
Financing receivable, modifications, post-modification recorded investment | 5,213 | 1,752 | $ 3,699 |
Residential real estate ³ | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 191 | $ 277 | |
Financing receivable, modifications, number of contracts | contract | 0 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 50 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 0 | 50 | $ 0 |
Residential real estate ³ | Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 48 | $ 74 | |
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 0 | 0 | $ 0 |
Consumer and other ⁴ | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 0 | $ 3 | |
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 188 |
Financing receivable, modifications, post-modification recorded investment | 0 | 0 | $ 188 |
Consumer and other ⁴ | Financing Receivables, Nonaccrual [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 13 | $ 31 | |
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Subsequent Defaults on Modified Loans (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 5 | 15 | 1 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 14,827 | $ 2,065 | $ 0 |
Total commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 2 | 1 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 10,938 | $ 0 | $ 0 |
Total commercial real estate | Construction and development | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | 0 | |
Total commercial real estate | Owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 1 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 10,577 | 0 | |
Total commercial real estate | Non-owner-occupied CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 1 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 361 | 0 | |
Total commercial real estate | Multifamily residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 0 | |
Agriculture | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 2 | 10 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 439 | $ 1,144 | $ 0 |
Commercial non-real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 1 | 4 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 3,450 | $ 921 | $ 0 |
Residential real estate ³ | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 0 | $ 0 |
Consumer and other ⁴ | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 0 | 1 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | $ 149,887 | [1] | $ 149,887 | [1] | $ 70,774 | $ 64,540 | |
Beginning balance | 149,887 | 149,887 | 70,774 | ||||
Charge-offs | (53,387) | (44,750) | (37,061) | ||||
Recoveries | 5,837 | 5,471 | 2,348 | ||||
Provision for credit losses on loans | (33,588) | 118,204 | 41,506 | ||||
Impairment of ASC 310-30 loans | 188 | (559) | |||||
Ending balance | 246,038 | [1] | 149,887 | [1] | 70,774 | ||
Ending balance | 149,887 | 70,774 | |||||
Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 177,289 | 177,289 | |||||
Provision for credit losses on loans | 177,300 | ||||||
Ending balance | 177,289 | ||||||
Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 327,176 | 327,176 | |||||
Ending balance | 327,176 | ||||||
Total commercial real estate | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 85,233 | 85,233 | 16,827 | 16,777 | |||
Beginning balance | 84,496 | 84,496 | 16,827 | ||||
Charge-offs | (40,320) | (5,181) | (1,511) | ||||
Recoveries | 1,025 | 1,395 | 567 | ||||
Provision for credit losses on loans | (8,556) | 71,474 | 1,514 | ||||
Impairment of ASC 310-30 loans | (19) | (520) | |||||
Ending balance | 155,310 | 85,233 | 16,827 | ||||
Ending balance | 84,496 | 16,827 | |||||
Total commercial real estate | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 117,928 | 117,928 | |||||
Ending balance | 117,928 | ||||||
Total commercial real estate | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 203,161 | 203,161 | |||||
Ending balance | 203,161 | ||||||
Total commercial real estate | Construction and development | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 7,012 | 7,012 | |||||
Charge-offs | (27) | ||||||
Recoveries | 424 | ||||||
Provision for credit losses on loans | 703 | ||||||
Ending balance | 20,075 | 7,012 | |||||
Total commercial real estate | Construction and development | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 11,963 | 11,963 | |||||
Ending balance | 11,963 | ||||||
Total commercial real estate | Construction and development | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 18,975 | 18,975 | |||||
Ending balance | 18,975 | ||||||
Total commercial real estate | Owner-occupied CRE | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 20,530 | 20,530 | |||||
Charge-offs | (2,965) | ||||||
Recoveries | 144 | ||||||
Provision for credit losses on loans | (3,784) | ||||||
Ending balance | 18,223 | 20,530 | |||||
Total commercial real estate | Owner-occupied CRE | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 4,298 | 4,298 | |||||
Ending balance | 4,298 | ||||||
Total commercial real estate | Owner-occupied CRE | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 24,828 | 24,828 | |||||
Ending balance | 24,828 | ||||||
Total commercial real estate | Non-owner-occupied CRE | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 50,965 | 50,965 | |||||
Charge-offs | (36,951) | ||||||
Recoveries | 457 | ||||||
Provision for credit losses on loans | (1,323) | ||||||
Ending balance | 112,134 | 50,965 | |||||
Total commercial real estate | Non-owner-occupied CRE | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 98,986 | 98,986 | |||||
Ending balance | 98,986 | ||||||
Total commercial real estate | Non-owner-occupied CRE | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 149,951 | 149,951 | |||||
Ending balance | 149,951 | ||||||
Total commercial real estate | Multifamily residential real estate | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 6,726 | 6,726 | |||||
Charge-offs | (377) | ||||||
Recoveries | 0 | ||||||
Provision for credit losses on loans | (4,152) | ||||||
Ending balance | 4,878 | 6,726 | |||||
Total commercial real estate | Multifamily residential real estate | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 2,681 | 2,681 | |||||
Ending balance | 2,681 | ||||||
Total commercial real estate | Multifamily residential real estate | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 9,407 | 9,407 | |||||
Ending balance | 9,407 | ||||||
Agriculture | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 27,018 | 27,018 | 30,819 | 28,121 | |||
Beginning balance | 27,018 | 27,018 | 30,819 | ||||
Charge-offs | (5,523) | (21,705) | (24,847) | ||||
Recoveries | 2,869 | 2,189 | 385 | ||||
Provision for credit losses on loans | (8,384) | 15,980 | 27,160 | ||||
Impairment of ASC 310-30 loans | (265) | 0 | |||||
Ending balance | 40,340 | 27,018 | 30,819 | ||||
Ending balance | 27,018 | 30,819 | |||||
Agriculture | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 24,360 | 24,360 | |||||
Ending balance | 24,360 | ||||||
Agriculture | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 51,378 | 51,378 | |||||
Ending balance | 51,378 | ||||||
Commercial non-real estate | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 27,599 | 27,599 | 17,567 | 13,610 | |||
Beginning balance | 27,599 | 27,599 | 17,567 | ||||
Charge-offs | (6,216) | (14,178) | (7,895) | ||||
Recoveries | 1,155 | 1,018 | 392 | ||||
Provision for credit losses on loans | (16,220) | 23,192 | 11,431 | ||||
Impairment of ASC 310-30 loans | 0 | 29 | |||||
Ending balance | 39,256 | 27,599 | 17,567 | ||||
Ending balance | 27,599 | 17,567 | |||||
Commercial non-real estate | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 32,938 | 32,938 | |||||
Ending balance | 32,938 | ||||||
Commercial non-real estate | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 60,537 | 60,537 | |||||
Ending balance | 60,537 | ||||||
Residential real estate ³ | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 7,465 | 7,465 | 4,095 | 4,749 | |||
Beginning balance | 8,202 | 8,202 | 4,095 | ||||
Charge-offs | (389) | (615) | (998) | ||||
Recoveries | 289 | 453 | 468 | ||||
Provision for credit losses on loans | (828) | 3,827 | (56) | ||||
Impairment of ASC 310-30 loans | 442 | (68) | |||||
Ending balance | 9,132 | 7,465 | 4,095 | ||||
Ending balance | 8,202 | 4,095 | |||||
Residential real estate ³ | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 2,595 | 2,595 | |||||
Ending balance | 2,595 | ||||||
Residential real estate ³ | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 10,060 | 10,060 | |||||
Ending balance | 10,060 | ||||||
Consumer and other ⁴ | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 2,572 | 2,572 | 1,466 | 1,283 | |||
Beginning balance | 2,572 | 2,572 | 1,466 | ||||
Charge-offs | (939) | (3,071) | (1,810) | ||||
Recoveries | 499 | 416 | 536 | ||||
Provision for credit losses on loans | 400 | 3,731 | 1,457 | ||||
Impairment of ASC 310-30 loans | 30 | 0 | |||||
Ending balance | 2,000 | 2,572 | 1,466 | ||||
Ending balance | 2,572 | $ 1,466 | |||||
Consumer and other ⁴ | Cumulative effect adjustment related to ASU adoption | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | (532) | (532) | |||||
Ending balance | (532) | ||||||
Consumer and other ⁴ | Adjusted Balance October 1, 2020 | |||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | $ 2,040 | $ 2,040 | |||||
Ending balance | $ 2,040 | ||||||
[1] | Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model. |
FDIC Indemnification Asset - Sc
FDIC Indemnification Asset - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
FDIC Indemnification Asset [Roll Forward] | |||
Balance, beginning of period | $ 0 | $ 1,079 | $ 2,502 |
Amortization | 0 | (1,012) | (1,386) |
Changes in expected reimbursements from FDIC for changes in expected credit losses | 0 | 0 | (10) |
Changes in reimbursable expenses | 0 | 0 | (41) |
Payments of covered losses to the FDIC | 0 | 47 | 14 |
Settlement upon expiration of loss-sharing arrangement | 0 | (114) | 0 |
Balance, end of period | $ 0 | $ 0 | $ 1,079 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 155,298 | $ 158,163 |
Accumulated depreciation | (37,320) | (39,109) |
Premise and equipment, net | 117,978 | 119,054 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 33,549 | 31,601 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 102,826 | 101,891 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 17,201 | 24,522 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,722 | $ 149 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 6,500,000 | $ 7,500,000 | $ 7,600,000 |
Property held for sale | 600,000 | 600,000 | |
Impairment charges recognized | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amounts and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Derivative [Line Items] | ||
Gross Asset Fair Value | $ 49,815 | $ 83,631 |
Gross Liability Fair Value | (39,464) | (64,389) |
Derivatives Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,315,359 | 2,182,738 |
Gross Asset Fair Value | 49,815 | 83,631 |
Gross Liability Fair Value | (39,464) | (64,389) |
Derivatives Not Designated as Hedging Instruments | Risk participation agreements | ||
Derivative [Line Items] | ||
Notional Amount | 106,862 | 80,681 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (186) | (32) |
Derivatives Not Designated as Hedging Instruments | Mortgage loan commitments | ||
Derivative [Line Items] | ||
Notional Amount | 35,809 | 92,278 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (20) | (96) |
Derivatives Not Designated as Hedging Instruments | Mortgage loan forward sale contracts | ||
Derivative [Line Items] | ||
Notional Amount | 35,715 | 94,084 |
Gross Asset Fair Value | 20 | 96 |
Gross Liability Fair Value | 0 | 0 |
Financial institution counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate swaps - FVO loan portfolio | ||
Derivative [Line Items] | ||
Notional Amount | 496,051 | 592,241 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (32,868) | (62,587) |
Financial institution counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate swaps - Other | ||
Derivative [Line Items] | ||
Notional Amount | 819,339 | 641,189 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | (1,605) | (1,672) |
Financial institution counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate caps | ||
Derivative [Line Items] | ||
Notional Amount | 1,122 | 20,538 |
Gross Asset Fair Value | 5 | 2 |
Gross Liability Fair Value | 0 | 0 |
Customer counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate swaps - Other | ||
Derivative [Line Items] | ||
Notional Amount | 819,339 | 641,189 |
Gross Asset Fair Value | 49,790 | 83,533 |
Gross Liability Fair Value | (4,780) | 0 |
Customer counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate caps | ||
Derivative [Line Items] | ||
Notional Amount | 1,122 | 20,538 |
Gross Asset Fair Value | 0 | 0 |
Gross Liability Fair Value | $ (5) | $ (2) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Offsetting Liabilities and Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative financial assets, gross amount | $ 49,815 | $ 83,631 |
Derivative financial assets, amount offset | (3,186) | (5,263) |
Derivative financial assets, cash collateral | 12,598 | 20,012 |
Derivative financial assets, net amount presented in Consolidated Balance Sheets | 59,227 | 98,380 |
Derivative financial liabilities, gross amount | (39,464) | (64,389) |
Derivative financial liabilities, amount offset | 3,186 | 5,263 |
Derivative financial liabilities, cash collateral | 31,472 | 59,028 |
Derivative liability, net amount presented on the Consolidated Balance Sheets | (4,806) | (98) |
Collateral held for initial margin | $ 23,100 | $ 22,900 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect on the Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Interest Expense | Interest rate swaps - FVO loan portfolio | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | $ (12,727) | $ (8,722) | $ 619 |
Change in Fair Value of FVO Loans and Related Derivatives | Interest rate swaps - FVO loan portfolio | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | 32,520 | (29,777) | (69,078) |
Other Derivative Income | Interest rate swaps - FVO loan portfolio | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | 6,500 | 60 | 5,015 |
Other Derivative Income | Mortgage loan commitments | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | 76 | 107 | 17 |
Other Derivative Income | Mortgage loan forward sale contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | $ (76) | $ (107) | $ (17) |
The Fair Value Option For Cer_2
The Fair Value Option For Certain Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Eligible item for the fair value option | $ 12,800 | $ 37,300 | |
Loans greater than 90 days past due or in nonaccrual status | 12,900 | 21,700 | |
Loans greater than 90 days past due or in nonaccrual status, unpaid principal balance | 13,000 | 26,200 | |
Change in fair value of FVO loans and related derivatives | 3,468 | (62,306) | $ (7,666) |
Loans Receivable and Written Loan Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Eligible item for the fair value option | (3,700) | 59,400 | 7,700 |
Fair value, option, aggregate differences, long-term debt instruments | 511,700 | 617,900 | |
Loans Receivable and Written Loan Commitments | Noninterest income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Change in fair value of FVO loans and related derivatives | $ (29,100) | $ (32,500) | $ 61,400 |
Goodwill - Summary of Changes t
Goodwill - Summary of Changes to the Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 0 | $ 739,023,000 | |
Goodwill acquired during the period | 0 | 1,539,000 | |
Goodwill impairment during the period | 0 | (740,562,000) | $ 0 |
Balance, end of period | $ 0 | $ 0 | $ 739,023,000 |
Core Deposits and Other Intan_3
Core Deposits and Other Intangibles - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 11,049 | $ 11,049 |
Accumulated amortization | (5,898) | (4,885) |
Net intangible assets | 5,151 | 6,164 |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,339 | 7,339 |
Accumulated amortization | (5,019) | (4,316) |
Net intangible assets | 2,320 | 3,023 |
Brand Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 0 | 0 |
Accumulated amortization | 0 | 0 |
Net intangible assets | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,172 | 3,172 |
Accumulated amortization | (488) | (244) |
Net intangible assets | 2,684 | 2,928 |
Other Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 538 | 538 |
Accumulated amortization | (391) | (325) |
Net intangible assets | $ 147 | $ 213 |
Core Deposits and Other Intan_4
Core Deposits and Other Intangibles - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1 | $ 1.4 | $ 1.5 |
Impairment of intangible assets | $ 0 | $ 1.8 | $ 0 |
Core Deposits and Other Intan_5
Core Deposits and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 929 | |
2023 | 831 | |
2024 | 742 | |
2025 | 683 | |
2026 | 502 | |
2027 and thereafter | 1,464 | |
Net intangible assets | $ 5,151 | $ 6,164 |
Leases - Summary of Operating L
Leases - Summary of Operating Leases (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($)lease | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | |
Right-of-use asset | $ 19,748 | $ 22,709 | |
Lease liability | $ 20,824 | $ 24,114 | |
Weighted average remaining lease term | 6 years 1 month 6 days | 6 years 3 months 14 days | |
Weighted average discount rate | 1.83% | 1.83% | |
Operating lease expense | $ 6,700 | $ 7,100 | $ 5,400 |
Number of operating leases that had not yet commenced | lease | 1 | 0 | |
Undiscounted cash flows of leases not yet commenced | $ 2,100 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 15 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 5,838 | $ 5,720 |
Right-of-use assets obtained in exchange for lease liabilities | $ 2,878 | $ 8,517 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
2022 | $ 5,088 | |
2023 | 4,396 | |
2024 | 3,644 | |
2025 | 2,693 | |
2026 and thereafter | 6,337 | |
Total undiscounted lease payments | 22,158 | |
Less: Amounts representing interest | (1,334) | |
Lease liability | $ 20,824 | $ 24,114 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 2,608,579 | $ 2,586,743 |
Interest-bearing demand | 7,967,316 | 7,139,058 |
Time deposits, greater than $250,000 | 146,962 | 352,913 |
Time deposits, less than or equal to $250,000 | 587,609 | 930,065 |
Total deposits | 11,310,466 | 11,008,779 |
Brokered deposits | $ 76,100 | $ 329,000 |
Deposits - Summary of Scheduled
Deposits - Summary of Scheduled Maturities of Time Deposits (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Fiscal year maturity: | |
2022 | $ 575,318 |
2023 | 105,017 |
2024 | 25,362 |
2025 | 14,169 |
2026 | 13,286 |
2027 and thereafter | 1,419 |
Total | $ 734,571 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase, amortized cost | $ 102.6 | $ 82.6 |
Securities sold under agreements to repurchase, fair value | $ 102.4 | $ 84.7 |
Percentage of total 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 | Sep. 30, 2021 | Sep. 30, 2020 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | $ 91,289 | $ 65,506 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 91,289 | 65,506 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 91,289 | 65,506 |
Overnight and Continuous | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 91,289 | 65,506 |
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 - Summary of Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
FHLB advances and other borrowings | $ 120,000 | $ 195,000 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 120,000 | 120,000 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.76% | |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 2.88% | |
Federal Home Loan Bank fed funds advance | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 0 | $ 75,000 |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Narrative (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 1,660,000,000 | $ 2,030,000,000 |
Loans pledged to the Federal Home Loan Bank | 3,180,000,000 | 4,070,000,000 |
Revolving line of credit | FRB Discount Window Loan | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 933,700,000 | 947,700,000 |
Loans pledged to the Federal Reserve Board Discount Window | 1,120,000,000 | 1,170,000,000 |
FHLB | Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 0 | 75,000,000 |
FHLB | Additional Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 10,200,000 | $ 14,600,000 |
FHLB Advances and Other Borro_5
FHLB Advances and Other Borrowings - Summary of Due or Callable Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 108,967 | $ 108,832 |
FHLB Advances and Other Borrowings | ||
Debt Instrument [Line Items] | ||
2022 | 30,000 | |
2023 | 30,000 | |
2024 | 60,000 | |
2025 | 0 | |
2026 | 0 | |
2027 and thereafter | 0 | |
Total | $ 120,000 |
Subordinated Debentures and S_3
Subordinated Debentures and Subordinated Notes Payable - Junior Subordinated Deferrable Interest Debentures (Details) $ / shares in Units, $ in Thousands | Jul. 05, 2007$ / sharesshares | Dec. 07, 2006$ / sharesshares | Mar. 10, 2006$ / sharesshares | Jun. 01, 2005$ / sharesshares | Dec. 17, 2003$ / sharesshares | Sep. 25, 2003$ / sharesshares | Dec. 19, 2002$ / sharesshares | Dec. 31, 2018shares | Sep. 30, 2021USD ($)quartertrust | Sep. 30, 2020USD ($) |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 108,967 | $ 108,832 | ||||||||
Mandatorily Redeemable Preferred Securities | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of trusts | trust | 7 | |||||||||
Deferred interest payments, number of consecutive quarters | quarter | 20 | |||||||||
Mandatorily Redeemable Preferred Securities | Great Western Statutory Trust IV | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 22,400 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Term of debt instrument | 30 years | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Mandatorily Redeemable Preferred Securities | GWB Capital Trust VI | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 30,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Mandatorily Redeemable Preferred Securities | GWB Capital Trust II | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Stated interest rate (as a percent) | 9.75% | |||||||||
Mandatorily Redeemable Preferred Securities | Sunstate Bancshares Trust II | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 2,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Mandatorily Redeemable Preferred Securities | HFB Capital Trust III | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 5,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Mandatorily Redeemable Preferred Securities | HFB Capital Trust IV | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 7,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Mandatorily Redeemable Preferred Securities | HFB Capital Trust V | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 10,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Number of shares redeemed (in shares) | shares | 5,000 | |||||||||
Mandatorily Redeemable Preferred Securities | HFB Capital Trust VI | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of shares caused to be issued | shares | 2,000 | |||||||||
Par value of shares issued (in dollars per share) | $ 1,000 | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | Great Western Statutory Trust IV | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 2.85% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | GWB Capital Trust VI | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.48% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | Sunstate Bancshares Trust II | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.85% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | HFB Capital Trust III | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 3.35% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | HFB Capital Trust IV | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 3.10% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | HFB Capital Trust V | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.83% | |||||||||
Mandatorily Redeemable Preferred Securities | London Interbank Offered Rate (LIBOR) | HFB Capital Trust VI | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.65% | |||||||||
Junior subordinated debentures payable to non-consolidated trusts | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 73,967 | 73,832 | ||||||||
Common shares held in other assets | $ | $ 2,520 | $ 2,520 |
Subordinated Debentures and S_4
Subordinated Debentures and Subordinated Notes Payable - Subordinated Notes Payable (Details) - Subordinated notes payable - USD ($) | 12 Months Ended | 60 Months Ended |
Sep. 30, 2021 | Aug. 15, 2025 | |
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% | |
London Interbank Offered Rate (LIBOR) | Forecast | ||
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 Subordinated Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Total | $ 108,967 | $ 108,832 |
Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | 75,920 | 75,920 |
Common Shares Held in Other Assets | 2,520 | 2,520 |
Less: fair value adjustment | (1,953) | (2,088) |
Total | $ 73,967 | 73,832 |
Subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.875% | |
GW Statutory Trust IV | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 23,093 | 23,093 |
Common Shares Held in Other Assets | $ 693 | $ 693 |
Basis spread on variable rate (as a percent) | 2.85% | 2.85% |
GW Statutory Trust VI | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 30,928 | $ 30,928 |
Common Shares Held in Other Assets | $ 928 | $ 928 |
Basis spread on variable rate (as a percent) | 1.48% | 1.48% |
SSB Trust II | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 2,062 | $ 2,062 |
Common Shares Held in Other Assets | $ 62 | $ 62 |
Basis spread on variable rate (as a percent) | 1.85% | 1.85% |
HFB Capital Trust III | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 5,155 | $ 5,155 |
Common Shares Held in Other Assets | $ 155 | $ 155 |
Basis spread on variable rate (as a percent) | 3.35% | 3.35% |
HFB Capital Trust IV | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 7,217 | $ 7,217 |
Common Shares Held in Other Assets | $ 217 | $ 217 |
Basis spread on variable rate (as a percent) | 3.10% | 3.10% |
HFB Capital Trust V | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 5,310 | $ 5,310 |
Common Shares Held in Other Assets | $ 310 | $ 310 |
Basis spread on variable rate (as a percent) | 1.83% | 1.83% |
HFB Capital Trust VI | Junior subordinated debentures payable to non-consolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 2,155 | $ 2,155 |
Common Shares Held in Other Assets | $ 155 | $ 155 |
Basis spread on variable rate (as a percent) | 1.65% | 1.65% |
Subordinated notes payable, fixed to floating rate | Subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 35,000 | $ 35,000 |
Stated interest rate (as a percent) | 3.15% | 3.15% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Currently paid or payable | |||
Federal | $ 37,928 | $ 18,511 | $ 30,779 |
State | 9,261 | 3,733 | 9,327 |
Total | 47,189 | 22,244 | 40,106 |
Deferred tax expense (benefit) | |||
Federal | 8,851 | (39,563) | 7,507 |
State | 2,971 | (8,191) | 617 |
Total | 11,822 | (47,754) | 8,124 |
Total provision for (benefit from) income taxes | $ 59,011 | $ (25,510) | $ 48,230 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory rate | $ 55,077 | $ (148,327) | $ 45,275 |
State income taxes, net of federal benefit | 9,663 | (3,521) | 7,855 |
Tax exempt interest income | (5,633) | (5,515) | (5,193) |
Tax impact of stock-based compensation plans | 355 | 83 | (91) |
Tax impact of goodwill impairment | 0 | 131,051 | 0 |
Other | (451) | 719 | 384 |
Total provision for (benefit from) income taxes | $ 59,011 | $ (25,510) | $ 48,230 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 59,864 | $ 36,177 |
Compensation | 5,587 | 3,547 |
Other real estate owned | 66 | 3,067 |
Core deposit intangible and other fair value adjustments | 1,939 | 2,554 |
Excess tax basis of loans acquired over carrying value | 476 | 2,059 |
Other reserves | 7,000 | 9,245 |
Goodwill and other intangibles | 8,729 | 11,075 |
Lease liability | 5,203 | 5,805 |
REIT income | 1,917 | 0 |
Net deferred loan fees | 5,416 | 0 |
Other | 5,583 | 7,268 |
Total deferred tax assets | 101,780 | 80,797 |
Deferred tax liabilities: | ||
Securities available for sale | (1,647) | (11,749) |
Premises and equipment | (6,231) | (7,167) |
Deferred REIT income | 0 | (8,522) |
Right of use asset | (4,858) | (5,399) |
Other | (183) | (251) |
Total deferred tax liabilities | (12,919) | (33,088) |
Net deferred tax assets | $ 88,861 | $ 47,709 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Contingency [Line Items] | ||
Income tax percentage (as a percent) | 22.50% | 3.60% |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
Income taxes receivable | $ 0.2 | $ 10.8 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - Multiple employer 401(k) profit sharing plan $ in Millions | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($) | Sep. 30, 2021USD ($)year | Sep. 30, 2020USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, requisite service period | 1 year | ||
Defined contribution plan, minimum age requirement | year | 21 | ||
Contributions by the Company | $ | $ 5.8 | $ 6.4 | $ 6.7 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 3.9 | $ 5 | $ 5.9 |
Tax benefit from compensation expense | 1 | 1.2 | 1.5 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, compensation cost not yet recognized | $ 5.1 | ||
Share-based compensation, compensation cost not yet recognized, recognition period | 3 years 3 months 18 days | ||
Share-based compensation, fair value of vested awards | $ 3 | $ 0.9 | $ 1.9 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted and Performance Stock (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted shares | |||
Common Shares | |||
Shares, beginning balance (shares) | 249,180 | 190,805 | 163,287 |
Granted (shares) | 181,896 | 147,282 | 106,753 |
Vested and issued (shares) | (94,655) | (84,316) | (76,210) |
Forfeited (shares) | (4,389) | (4,591) | (3,025) |
Canceled (shares) | 0 | 0 | 0 |
Shares, ending balance (shares) | 332,032 | 249,180 | 190,805 |
Vested, but not issuable (shares) | 87,324 | 62,992 | 50,770 |
Weighted-Average Grant Date Fair Value | |||
Outstanding (in USD per share) | $ 32.89 | $ 37.20 | $ 37.86 |
Granted (in USD per share) | 19.04 | 30.68 | 37.27 |
Vested and issued (in USD per share) | 33.33 | 38.60 | 38.64 |
Forfeited (in USD per share) | 26.90 | 36.18 | 38.67 |
Canceled (in USD per share) | 0 | 0 | 0 |
Outstanding (in USD per share) | 25.26 | 32.89 | 37.20 |
Vested, but not issuable (in USD per share) | $ 29.32 | $ 33.98 | $ 33.88 |
Performance shares | |||
Common Shares | |||
Shares, beginning balance (shares) | 175,740 | 173,332 | 175,196 |
Granted (shares) | 142,052 | 62,278 | 60,583 |
Vested and issued (shares) | (25,452) | (54,861) | (59,937) |
Forfeited (shares) | (5,243) | (5,009) | (2,510) |
Canceled (shares) | 0 | 0 | 0 |
Shares, ending balance (shares) | 287,097 | 175,740 | 173,332 |
Vested, but not issuable (shares) | 5,612 | 5,612 | 5,612 |
Weighted-Average Grant Date Fair Value | |||
Outstanding (in USD per share) | $ 33.56 | $ 38.50 | $ 36.29 |
Granted (in USD per share) | 14.29 | 40.15 | 32.77 |
Vested and issued (in USD per share) | 41.07 | 39.43 | 30.79 |
Forfeited (in USD per share) | 28.85 | 37.90 | 39.25 |
Canceled (in USD per share) | 0 | 0 | 0 |
Outstanding (in USD per share) | 24.10 | 33.56 | 38.50 |
Vested, but not issuable (in USD per share) | $ 18 | $ 18 | $ 18 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Great Western Bancorp, Inc. | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,378,832 | $ 1,195,453 |
Actual, Percentage | 0.151 | 0.118 |
For Capital Adequacy Purposes, Amount | $ 547,720 | $ 609,080 |
For Capital Adequacy Purposes, Percentage | 0.060 | 0.060 |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,491,639 | $ 1,350,658 |
Actual, Percentage | 0.163 | 0.133 |
For Capital Adequacy Purposes, Amount | $ 730,293 | $ 812,107 |
For Capital Adequacy Purposes, Percentage | 0.080 | 0.080 |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,378,832 | $ 1,195,453 |
Actual, Percentage | 0.106 | 0.094 |
For Capital Adequacy Purposes, Actual | $ 520,228 | $ 511,248 |
For Capital Adequacy Purposes, Percentage | 0.040 | 0.040 |
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,304,865 | $ 1,121,621 |
Actual, Percentage | 14.30% | 11.00% |
For Capital Adequacy Purposes, Actual | $ 410,790 | $ 456,810 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
Great Western Bank | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,377,944 | $ 1,187,905 |
Actual, Percentage | 0.151 | 0.117 |
For Capital Adequacy Purposes, Amount | $ 547,585 | $ 608,916 |
For Capital Adequacy Purposes, Percentage | 0.060 | 0.060 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 730,113 | $ 811,888 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 0.080 | 0.080 |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,469,751 | $ 1,315,077 |
Actual, Percentage | 0.161 | 0.130 |
For Capital Adequacy Purposes, Amount | $ 730,113 | $ 811,888 |
For Capital Adequacy Purposes, Percentage | 0.080 | 0.080 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 912,641 | $ 1,014,860 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 0.100 | 0.100 |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,377,944 | $ 1,187,905 |
Actual, Percentage | 0.106 | 0.093 |
For Capital Adequacy Purposes, Actual | $ 520,272 | $ 509,649 |
For Capital Adequacy Purposes, Percentage | 0.040 | 0.040 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 650,341 | $ 637,062 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 0.050 | 0.050 |
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,377,944 | $ 1,187,905 |
Actual, Percentage | 15.10% | 11.70% |
For Capital Adequacy Purposes, Actual | $ 410,688 | $ 456,687 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 593,217 | $ 659,659 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 6.50% | 6.50% |
Commitments and Contingencies -
Commitments and Contingencies - Summary of the Company's Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans repurchased during period | $ 3,300 | $ 3,300 |
Advisory fee commitments | 13,400 | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | 2,145,321 | 2,138,138 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | $ 43,976 | $ 65,707 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Leased Assets [Line Items] | |||
Operating lease expense | $ 6,700 | $ 7,100 | $ 5,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2022 | 5,088 | ||
2023 | 4,396 | ||
2024 | 3,644 | ||
2025 | 2,693 | ||
2026 and thereafter | 6,337 | ||
Total undiscounted lease payments | $ 22,158 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases, renewal term | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases, renewal term | 15 years |
Transactions with Related Par_2
Transactions with Related Parties (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |||
Interest on related party notes payable | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,343,202 | $ 1,774,626 |
Derivatives-assets | 59,227 | 98,380 |
Derivatives-liabilities | 4,806 | 98 |
Fair value loans | 655,200 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 98,787 | 50,152 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,135,261 | 1,642,780 |
States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 44,550 | 55,580 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 39,519 | 0 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,343,202 | 1,774,626 |
Derivatives-assets | 59,227 | 98,380 |
Derivatives-liabilities | 4,806 | 98 |
Fair value loans | 524,533 | 655,185 |
Loan servicing rights | 663 | 1,303 |
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 | 98,787 | 50,152 |
Fair value, measurements, recurring | U.S. Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 24,048 | 25,060 |
Fair value, measurements, recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,135,261 | 1,642,780 |
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 | 44,550 | 55,580 |
Fair value, measurements, recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 39,519 | |
Fair value, measurements, recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,037 | 1,054 |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 122,835 | 75,212 |
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 | 98,787 | 50,152 |
Fair value, measurements, recurring | Level 1 | U.S. Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 24,048 | 25,060 |
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 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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 | 2,220,367 | 1,695,617 |
Derivatives-assets | 59,227 | 98,380 |
Derivatives-liabilities | 4,806 | 98 |
Fair value loans | 524,533 | 655,185 |
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 | U.S. Agency 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 | 2,135,261 | 1,642,780 |
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 | 44,550 | 51,783 |
Fair value, measurements, recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 39,519 | |
Fair value, measurements, recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,037 | 1,054 |
Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 3,797 |
Derivatives-assets | 0 | 0 |
Derivatives-liabilities | 0 | 0 |
Fair value loans | 0 | 0 |
Loan servicing rights | 663 | 1,303 |
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 | U.S. Agency 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 | 0 | 3,797 |
Fair value, measurements, recurring | Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
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 Other Available-for-Sale (Details) - Loan servicing rights - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ 1,303 | $ 2,255 | $ 3,087 |
Realized and unrealized loss | (640) | (952) | (832) |
Balance, end of period | $ 663 | $ 1,303 | $ 2,255 |
Fair Value Measurements - Mortg
Fair Value Measurements - Mortgage Loans Held for Sale (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | $ 3,606 | $ 17,991 |
Impaired loans | 161,307 | 669,968 |
Mortgage loans held for sale, at lower of cost or fair value | 2,904 | 12,371 |
Property held for sale | 600 | 600 |
Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 0 | 0 |
Impaired loans | 0 | 0 |
Mortgage 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 |
Mortgage loans held for sale, at lower of cost or fair value | 2,904 | 12,371 |
Property held for sale | 0 | 0 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 3,606 | 17,991 |
Impaired loans | 161,307 | 669,968 |
Mortgage loans held for sale, at lower of cost or fair value | 0 | 0 |
Property held for sale | $ 600 | $ 600 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Significant Unobservable Inputs Used for Level 3 Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Property held for sale | $ 600 | $ 600 |
Fair value, measurements, nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 3,606 | 17,991 |
Impaired loans | 161,307 | 669,968 |
Fair value, measurements, nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 3,606 | 17,991 |
Impaired loans | 161,307 | $ 669,968 |
Property held for sale | $ 600 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Balance Sheet Grouping Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Assets [Abstract] | ||
Securities purchased under agreements to resell | $ 104,339 | $ 0 |
Liabilities | ||
Net deferred loan fees | 23,600 | 29,000 |
Carrying Amount | ||
Assets [Abstract] | ||
Securities held to maturity | 367,751 | 0 |
Carrying Amount | Level 1 | ||
Assets [Abstract] | ||
Cash and cash equivalents | 1,552,260 | 432,887 |
Securities purchased under agreements to resell | 104,339 | 0 |
Securities held to maturity | 27,782 | 0 |
Carrying Amount | Level 3 | ||
Assets [Abstract] | ||
Securities held to maturity | 3,450 | 0 |
Loans, net, excluding fair valued loans, loans held for sale and impaired loans | 7,496,309 | 8,738,617 |
Carrying Amount | Level 2 | ||
Assets [Abstract] | ||
Securities held to maturity | 336,519 | 0 |
Liabilities | ||
Time deposits | 734,571 | 1,282,978 |
FHLB advances and other borrowings | 120,000 | 195,000 |
Securities sold under repurchase agreements | 91,289 | 65,506 |
Subordinated debentures and subordinated notes payable | 108,967 | 108,832 |
Fair Value | ||
Assets [Abstract] | ||
Securities held to maturity | 364,612 | 0 |
Fair Value | Level 1 | ||
Assets [Abstract] | ||
Cash and cash equivalents | 1,552,260 | 432,887 |
Securities purchased under agreements to resell | 104,339 | 0 |
Securities held to maturity | 27,539 | 0 |
Fair Value | Level 3 | ||
Assets [Abstract] | ||
Securities held to maturity | 3,450 | 0 |
Loans, net, excluding fair valued loans, loans held for sale and impaired loans | 7,538,968 | 8,768,314 |
Fair Value | Level 2 | ||
Assets [Abstract] | ||
Securities held to maturity | 333,623 | 0 |
Liabilities | ||
Time deposits | 735,407 | 1,287,814 |
FHLB advances and other borrowings | 126,229 | 204,715 |
Securities sold under repurchase agreements | 91,289 | 65,506 |
Subordinated debentures and subordinated notes payable | $ 100,739 | $ 96,424 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) | $ 203,258 | $ (680,808) | $ 167,365 |
Weighted average shares outstanding, basic (in shares) | 55,183,940 | 55,612,251 | 57,154,865 |
Dilutive effect of stock based compensation (in shares) | 259,969 | 0 | 102,196 |
Weighted average shares outstanding, diluted (in shares) | 55,443,909 | 55,612,251 | 57,257,061 |
Basic earnings per share (in dollars per share) | $ 3.68 | $ (12.24) | $ 2.93 |
Diluted earnings per share (in dollars per share) | $ 3.67 | $ (12.24) | $ 2.92 |
Performance stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 17,074 | |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 132,526 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 53,493 | $ 52,246 | $ 55,852 |
Noninterest income (loss) within the scope of other GAAP Topics | 13,071 | (52,229) | 4,880 |
Total noninterest income | 66,564 | 17 | 60,732 |
Service charges and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37,129 | 37,741 | 43,893 |
Wealth management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 13,347 | 11,772 | 8,914 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,017 | $ 2,733 | $ 3,045 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 1,552,260 | $ 432,887 | ||
Net deferred tax assets | 88,861 | 47,709 | ||
Other assets | 171,616 | 197,558 | ||
Total assets | 12,911,468 | 12,604,439 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,967 | 108,832 | ||
Accrued expenses and other liabilities | 79,267 | 63,389 | ||
Total liabilities | 11,709,989 | 11,441,506 | ||
Stockholders’ equity | ||||
Common stock | 551 | 550 | ||
Additional paid-in capital | 1,182,732 | 1,183,647 | ||
Retained earnings | 13,170 | (57,169) | ||
Accumulated other comprehensive income | 5,026 | 35,905 | ||
Total stockholders' equity | 1,201,479 | 1,162,933 | $ 1,900,249 | $ 1,840,551 |
Total liabilities and stockholders' equity | 12,911,468 | 12,604,439 | ||
Great Western Bancorp, Inc. | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 28,614 | 36,420 | ||
Investment in subsidiaries | 1,274,568 | 1,229,227 | ||
Net deferred tax assets | 1,354 | 1,395 | ||
Other assets | 7,225 | 6,086 | ||
Total assets | 1,311,761 | 1,273,128 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,967 | 108,832 | ||
Accrued expenses and other liabilities | 1,315 | 1,363 | ||
Total liabilities | 110,282 | 110,195 | ||
Stockholders’ equity | ||||
Common stock | 551 | 550 | ||
Additional paid-in capital | 1,182,732 | 1,183,647 | ||
Retained earnings | 13,170 | (57,169) | ||
Accumulated other comprehensive income | 5,026 | 35,905 | ||
Total stockholders' equity | 1,201,479 | 1,162,933 | ||
Total liabilities and stockholders' equity | $ 1,311,761 | $ 1,273,128 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income | |||
Dividends on securities | $ 33,995 | $ 42,653 | $ 41,510 |
Net gain (loss) on sale of securities | 249 | 7,890 | (178) |
Expenses | |||
Interest on subordinated debentures and subordinated notes payable | 3,182 | 4,516 | 5,540 |
Salaries and employee benefits | 154,288 | 149,441 | 136,305 |
Professional fees | 21,332 | 21,961 | 14,579 |
Other | 15,366 | 31,632 | 20,293 |
Income tax benefit | 59,011 | (25,510) | 48,230 |
Net income | 203,258 | (680,808) | 167,365 |
Great Western Bancorp, Inc. | |||
Income | |||
Dividends from subsidiary bank | 2,757 | 75,079 | 148,128 |
Dividends on securities | 4 | 2 | 19 |
Other | 60 | 87 | 120 |
Net gain (loss) on sale of securities | 248 | 0 | 0 |
Total income | 3,069 | 75,168 | 148,267 |
Expenses | |||
Interest on subordinated debentures and subordinated notes payable | 3,182 | 4,515 | 5,540 |
Salaries and employee benefits | 3,868 | 5,295 | 6,288 |
Professional fees | 1,198 | 1,291 | 1,035 |
Other | 2,776 | 2,913 | 2,653 |
Total expense | 11,024 | 14,014 | 15,516 |
Income before income tax and equity in undistributed net income of subsidiaries | (7,955) | 61,154 | 132,751 |
Income tax benefit | (2,074) | (1,114) | (2,965) |
Income before equity in undistributed net income of subsidiaries | (5,881) | 62,268 | 135,716 |
Equity in undistributed net income of subsidiaries | 209,139 | (743,076) | 31,649 |
Net income | $ 203,258 | $ (680,808) | $ 167,365 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | |||
Net (loss) | $ 203,258 | $ (680,808) | $ 167,365 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||
Depreciation, amortization and deferred fee accretion, net | (15,945) | 26,354 | 13,655 |
Stock-based compensation | 3,494 | 3,705 | 4,582 |
Deferred income taxes | 11,822 | (47,754) | 8,124 |
Changes in: | |||
Other assets | 20,684 | (77,271) | (48,524) |
Accrued expenses and other liabilities | 17,638 | (5,398) | 2,949 |
Net cash provided by operating activities | 231,451 | 82,464 | 191,659 |
Financing activities | |||
Common stock repurchased | 0 | (39,983) | (94,351) |
Dividends paid | (4,408) | (42,456) | (62,904) |
Net cash provided by financing activities | 247,470 | 476,340 | 451,587 |
Net increase (decrease) in cash and cash equivalents | 1,119,373 | 189,413 | (55,222) |
Cash and cash equivalents, beginning of period | 432,887 | 243,474 | 298,696 |
Cash and cash equivalents, end of period | 1,552,260 | 432,887 | 243,474 |
Great Western Bancorp, Inc. | |||
Operating activities | |||
Net (loss) | 203,258 | (680,808) | 167,365 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||
Depreciation, amortization and deferred fee accretion, net | 135 | 196 | 168 |
Stock-based compensation | 3,494 | 3,705 | 4,582 |
Deferred income taxes | 41 | 321 | (227) |
Changes in: | |||
Other assets | (1,139) | (5,397) | 1,367 |
Accrued expenses and other liabilities | (48) | 223 | 268 |
Equity in undistributed net income of subsidiaries | (209,139) | 743,076 | (31,649) |
Net cash provided by operating activities | (3,398) | 61,316 | 141,874 |
Financing activities | |||
Common stock repurchased | 0 | (39,983) | (94,351) |
Dividends paid | (4,408) | (42,456) | (62,904) |
Net cash provided by financing activities | (4,408) | (82,439) | (157,255) |
Net increase (decrease) in cash and cash equivalents | (7,806) | (21,123) | (15,381) |
Cash and cash equivalents, beginning of period | 36,420 | 57,543 | 72,924 |
Cash and cash equivalents, end of period | $ 28,614 | $ 36,420 | $ 57,543 |