Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 20, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Great Western Bancorp, Inc. | ||
Entity Central Index Key | 1,613,665 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,492,033,526 | ||
Entity Common Stock, Shares Outstanding (in shares) | 58,853,861 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets | ||
Cash and due from banks | $ 170,657 | $ 142,152 |
Interest bearing bank deposits | 189,739 | 382,459 |
Cash and cash equivalents | 360,396 | 524,611 |
Securities available for sale | 1,367,960 | 1,315,860 |
Loans, net of unearned discounts and deferred fees, including $57,537 and $73,272 of loans covered by FDIC loss share agreements at September 30, 2017 and 2016, respectively, and $1,016,576 and $1,131,111 of loans and written loan commitments at fair value under the fair value option at September 30, 2017 and 2016, respectively, and $7,456 and $12,918 of loans held for sale at September 30, 2017 and 2016, respectively | 8,968,553 | 8,682,644 |
Allowance for loan and lease losses | (63,503) | (64,642) |
Net loans | 8,905,050 | 8,618,002 |
Premises and equipment, including $5,147 and $8,112 of property held for sale at September 30, 2017 and September 30, 2016, respectively | 112,209 | 118,506 |
Accrued interest receivable | 53,176 | 49,531 |
Other repossessed property, including $0 and $106 of property covered by FDIC loss share agreements at September 30, 2017 and 2016, respectively | 8,985 | 10,282 |
FDIC indemnification asset | 5,704 | 10,777 |
Goodwill | 739,023 | 739,023 |
Core deposits and other intangibles | 9,374 | 11,732 |
Loan servicing rights | 4,074 | 5,781 |
Cash surrender value of life insurance policies | 29,619 | 29,166 |
Net deferred tax assets | 42,400 | 38,346 |
Other assets | 52,041 | 59,563 |
Total assets | 11,690,011 | 11,531,180 |
Deposits | ||
Noninterest-bearing | 1,856,126 | 1,880,512 |
Interest-bearing | 7,121,487 | 6,724,278 |
Total deposits | 8,977,613 | 8,604,790 |
Securities sold under agreements to repurchase | 132,636 | 141,688 |
FHLB advances and other borrowings | 643,214 | 871,037 |
Subordinated debentures and subordinated notes payable | 108,302 | 111,873 |
Fair value of derivatives | 17,107 | 81,515 |
Accrued interest payable | 4,405 | 4,074 |
Accrued expenses and other liabilities | 51,734 | 52,812 |
Total liabilities | 9,935,011 | 9,867,789 |
Stockholders’ equity | ||
Common stock, $0.01 par value, authorized 500,000,000 shares; 58,834,066 shares issued and outstanding at September 30, 2017 and 58,693,304 shares issued and outstanding at September 30, 2016 | 588 | 587 |
Additional paid-in capital | 1,314,039 | 1,312,347 |
Retained earnings | 445,747 | 344,923 |
Accumulated other comprehensive (loss) income | (5,374) | 5,534 |
Total stockholders’ equity | 1,755,000 | 1,663,391 |
Total liabilities and stockholders’ equity | $ 11,690,011 | $ 11,531,180 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets | ||
Loans covered by FDIC loss share agreements | $ 57,537 | $ 73,272 |
Loans and written loan commitments at fair value under the fair value option | 1,016,576 | 1,131,111 |
Loans held for sale | 7,456 | 12,918 |
Property held for sale | 5,147 | 8,112 |
Property covered by FDIC loss share arrangements | $ 0 | $ 106 |
Liabilities and stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 58,834,066 | 58,693,304 |
Common stock, shares outstanding | 58,834,066 | 58,693,304 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income | |||
Loans | $ 414,434 | $ 370,444 | $ 338,458 |
Taxable securities | 24,262 | 23,249 | 22,973 |
Nontaxable securities | 978 | 230 | 51 |
Dividends on securities | 1,071 | 1,201 | 1,247 |
Federal funds sold and other | 922 | 574 | 652 |
Total interest and dividend income | 441,667 | 395,698 | 363,381 |
Interest expense | |||
Deposits | 35,035 | 25,114 | 23,362 |
Securities sold under agreements to repurchase | 384 | 519 | 563 |
FHLB advances and other borrowings | 5,437 | 4,154 | 3,631 |
Related party notes payable | 0 | 0 | 771 |
Subordinated debentures and subordinated notes payable | 4,464 | 3,737 | 1,557 |
Total interest expense | 45,320 | 33,524 | 29,884 |
Net interest income | 396,347 | 362,174 | 333,497 |
Provision for loan and lease losses | 21,539 | 16,955 | 19,041 |
Net interest income after provision for loan losses | 374,808 | 345,219 | 314,456 |
Noninterest income | |||
Service charges and other fees | 48,573 | 46,209 | 39,134 |
Wealth management fees | 9,118 | 7,283 | 7,412 |
Mortgage banking income, net | 7,928 | 7,261 | 6,694 |
Net gain on sale of securities | 75 | 160 | 310 |
Net (decrease) increase in fair value of loans at fair value | (65,231) | 26,314 | 36,742 |
Net realized and unrealized gain (loss) on derivatives | 49,900 | (48,658) | (62,088) |
Other | 5,699 | 3,968 | 5,686 |
Total noninterest income | 56,062 | 42,537 | 33,890 |
Noninterest expense | |||
Salaries and employee benefits | 128,135 | 109,055 | 100,646 |
Data processing | 24,514 | 21,719 | 19,531 |
Occupancy expenses, net | 16,470 | 15,759 | 14,809 |
Professional fees | 15,038 | 13,572 | 14,024 |
Communication expenses | 3,774 | 3,721 | 4,455 |
Advertising | 3,983 | 4,267 | 3,940 |
Equipment expenses | 3,347 | 3,795 | 3,905 |
Net loss recognized on repossessed property and other related expenses | 1,749 | 1,263 | 5,382 |
Amortization of core deposits and other intangibles | 2,358 | 3,264 | 7,110 |
Acquisition expenses | 710 | 15,692 | 0 |
Other | 16,565 | 15,533 | 12,992 |
Total noninterest expense | 216,643 | 207,640 | 186,794 |
Income before income taxes | 214,227 | 180,116 | 161,552 |
Provision for income taxes | 69,441 | 58,863 | 52,487 |
Net income | $ 144,786 | $ 121,253 | $ 109,065 |
Basic earnings per common share | |||
Weighted average shares outstanding, basic (in shares) | 58,770,708 | 56,563,438 | 57,455,693 |
Basic earnings per share (in dollars per share) | $ 2.46 | $ 2.14 | $ 1.90 |
Diluted earnings per common share | |||
Weighted average shares outstanding, diluted (in shares) | 59,029,382 | 56,729,350 | 57,500,878 |
Diluted earnings per share (in dollars per share) | $ 2.45 | $ 2.14 | $ 1.90 |
Dividends per share | |||
Dividends paid | $ 43,474 | $ 31,419 | $ 20,520 |
Dividends per share (in dollars per share) | $ 0.74 | $ 0.56 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 144,786 | $ 121,253 | $ 109,065 |
Securities available for sale: | |||
Net unrealized holding (loss) gain arising during the year | (17,848) | 5,347 | 13,979 |
Reclassification adjustment for net (gain) realized in net income | (75) | (160) | (310) |
Income tax benefit (expense) | 6,811 | (1,971) | (5,194) |
Net change in unrealized (losses) gains on securities available for sale | (11,112) | 3,216 | 8,475 |
Defined benefit pension plan obligation: | |||
Net unrealized holding gain arising during the year | 329 | 0 | 0 |
Income tax (expense) | (125) | 0 | 0 |
Net change in defined benefit pension plan obligation | 204 | 0 | 0 |
Other comprehensive (loss) income, net of tax | (10,908) | 3,216 | 8,475 |
Comprehensive income | $ 133,878 | $ 124,469 | $ 117,540 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Comprehensive Income | Common Stock Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income / (Loss) | |
Beginning balance at Sep. 30, 2014 | $ 1,421,090 | $ 579 | $ 1,260,124 | $ 166,544 | $ (6,157) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 109,065 | $ 109,065 | 109,065 | ||||
Other comprehensive income, net of tax | 8,475 | 8,475 | 8,475 | ||||
Comprehensive income | 117,540 | 117,540 | |||||
Stock-based compensation, net of tax | 1,236 | 0 | 1,236 | ||||
Common stock repurchased | (60,000) | (27) | (59,973) | ||||
Cash dividends: | |||||||
Common stock, $0.74, $0.56, and $0.36 per share in 2017, 2016 and 2015, respectively | (20,520) | (20,520) | |||||
Ending balance at Sep. 30, 2015 | 1,459,346 | 552 | 1,201,387 | 255,089 | 2,318 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 121,253 | 121,253 | 121,253 | ||||
Other comprehensive income, net of tax | 3,216 | 3,216 | 3,216 | ||||
Comprehensive income | 124,469 | 124,469 | |||||
Stock-based compensation, net of tax | 3,517 | 0 | 3,517 | ||||
Common stock issued in business acquisition | 107,478 | 35 | 107,443 | ||||
Cash dividends: | |||||||
Common stock, $0.74, $0.56, and $0.36 per share in 2017, 2016 and 2015, respectively | (31,419) | (31,419) | |||||
Ending balance at Sep. 30, 2016 | 1,663,391 | 587 | 1,312,347 | 344,923 | 5,534 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment | [1] | 263 | 751 | (488) | |||
Net income | 144,786 | 144,786 | 144,786 | ||||
Other comprehensive income, net of tax | (10,908) | (10,908) | (10,908) | ||||
Comprehensive income | 133,878 | $ 133,878 | |||||
Stock-based compensation, net of tax | 6,547 | 2 | 6,545 | ||||
Common stock repurchased | (5,605) | (1) | (5,604) | ||||
Cash dividends: | |||||||
Common stock, $0.74, $0.56, and $0.36 per share in 2017, 2016 and 2015, respectively | (43,474) | (43,474) | |||||
Ending balance at Sep. 30, 2017 | $ 1,755,000 | $ 588 | $ 1,314,039 | $ 445,747 | $ (5,374) | ||
[1] | Cumulative effect adjustment related to adoption of ASU 2016-09 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid on common stock (in dollars per share) | $ 0.74 | $ 0.56 | $ 0.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Operating activities | ||||
Net income | $ 144,786 | $ 121,253 | $ 109,065 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 13,599 | 16,259 | 20,984 | |
Amortization of FDIC indemnification asset | 4,748 | 3,836 | 7,552 | |
Net gain on sale of securities | (75) | (160) | (310) | |
Gain on redemption of subordinated debentures | (111) | 0 | 0 | |
Net gain on sale of loans | (9,635) | (8,053) | (6,694) | |
Net loss on FDIC indemnification asset | 1,031 | 1,069 | 2,277 | |
Net (gain) loss on sale of premises and equipment | (160) | 1,974 | (1,983) | |
Net loss from sale/writedowns of repossessed property | 1,749 | 1,263 | 5,382 | |
Provision for loan and lease losses | 21,539 | 16,955 | 19,041 | |
Provision for loan servicing rights loss | 68 | 13 | 0 | |
Stock-based compensation | 6,810 | 3,517 | 1,236 | |
Originations of residential real estate loans held-for-sale | (275,015) | (294,221) | (281,098) | |
Proceeds from sales of residential real estate loans held-for-sale | 290,111 | 299,223 | 288,306 | |
Net deferred income taxes | 2,631 | (1,563) | 7,040 | |
Changes in: | ||||
Accrued interest receivable | (3,645) | (1,337) | (1,468) | |
Other assets | (2,405) | 4,703 | (1,814) | |
FDIC clawback liability | 1,349 | 1,061 | 917 | |
Accrued interest payable and other liabilities | (65,866) | 19,017 | 30,330 | |
Net cash provided by operating activities | 131,509 | 184,809 | 198,763 | |
Investing activities | ||||
Purchase of securities available for sale | (313,701) | (278,291) | (353,249) | |
Proceeds from sales of securities available for sale | 5,074 | 145,934 | 105,190 | |
Proceeds from maturities of securities available for sale | 233,357 | 308,033 | 269,284 | |
Net increase in loans | (318,876) | (503,394) | (553,976) | |
(Payment) reimbursement of covered losses from FDIC indemnification claims | (706) | (960) | 2,127 | |
Purchase of premises and equipment | (6,409) | (15,456) | (3,895) | |
Proceeds from sale of premises and equipment | 5,260 | 741 | 3,576 | |
Proceeds from sale of repossessed property | 7,334 | 12,173 | 35,942 | |
Purchase of FHLB stock | (38,345) | (48,295) | (50,335) | |
Proceeds from redemption of FHLB stock | 47,819 | 43,045 | 50,512 | |
Net cash paid in business acquisition | 0 | (15,669) | 0 | |
Net cash used in investing activities | (379,193) | (352,139) | (494,824) | |
Financing activities | ||||
Net increase in deposits | 373,408 | 355,001 | 334,885 | |
Net increase in securities sold under agreements to repurchase and other short-term borrowings | 347,148 | 81,762 | 23,584 | |
Proceeds from FHLB advances and other long-term borrowings | 0 | 394,827 | 295,906 | |
Repayments on FHLB advances and other long-term borrowings | (584,000) | (346,000) | (290,000) | |
Proceeds from issuance of subordinated notes payable, net | 0 | 0 | 34,632 | |
Redemption of subordinated debentures | (3,625) | 0 | 0 | |
Payment of related party notes payable | 0 | 0 | (41,295) | |
Common stock repurchased | (5,605) | 0 | (60,000) | |
Taxes paid related to net share settlement of equity awards | [1] | (383) | 0 | 0 |
Dividends paid | (43,474) | (31,419) | (20,520) | |
Net cash provided by financing activities | 83,469 | 454,171 | 277,192 | |
Net (decrease) increase in cash and cash equivalents | (164,215) | 286,841 | (18,869) | |
Cash and cash equivalents, beginning of year | 524,611 | 237,770 | 256,639 | |
Cash and cash equivalents, end of year | 360,396 | 524,611 | 237,770 | |
Supplemental disclosures of cash flows information | ||||
Cash payments for interest | 44,989 | 33,456 | 31,150 | |
Cash payments for income taxes | 71,964 | 54,570 | 52,319 | |
Supplemental schedules of noncash investing and financing activities | ||||
Loans transferred to repossessed assets | (7,786) | (4,331) | (7,636) | |
Repossessed property transferred to premises and equipment | $ 0 | $ (840) | $ 0 | |
[1] | Related to the Company's early adoption of ASU 2016-09, certain prior period amounts have been retrospectively reclassified between operating activities and financing activities. See Note 1, Nature of Operations and Summary of Significant Policies, for additional information. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Great Western Bancorp, Inc. (the “Company”) is a bank holding company organized under the laws of Delaware and is listed on the New York Stock Exchange ("NYSE") under the symbol GWB. The primary business of the Company is ownership of its wholly owned subsidiary, Great Western Bank (the “Bank”). The Bank is a full-service regional bank focused on relationship-based business and agri-business banking in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota . The Company and the Bank are subject to the regulation of certain federal and/or state agencies and undergo periodic examinations by those regulatory authorities. Substantially all of the Company’s income is generated from banking operations. Segment Reporting The “Segment Reporting” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 accounting principles generally accepted in the United States (“U.S. 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 (“VIE”) under U.S. 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 in the Company’s consolidated financial statements. Certain previously reported amounts have been reclassified to conform to the current presentation. Use of Estimates U.S. GAAP requires management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Subsequent Events On October 26, 2017 , the Board of Directors of the Company declared a dividend of $0.20 per common share payable on November 22, 2017 to stockholders of record as of close of business on November 10, 2017 . The Company evaluated subsequent events through the date its consolidated financial statements were issued. Other than those events described above, there were no other material events that would require recognition in 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 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 loan and lease 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 in 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 The Company classifies securities upon purchase in one of three categories: trading, held to maturity, or available for sale. Debt and equity securities held for resale are classified as trading. Debt securities for which the Company has the ability and positive intent to hold until maturity are classified as held to maturity. 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. Held to maturity securities are stated at amortized cost, which represents actual cost adjusted for premium amortization and discount accretion. Available for sale securities are stated at fair value, with unrealized gains and losses, net of related taxes, included in stockholders’ equity as a component of accumulated other comprehensive income (loss). 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 in the consolidated statements of income. Purchases and sales of securities are recognized on a trade date basis. The cost of securities sold is based on the specific identification method. Declines in the fair value of investment securities available for sale that are deemed to be other-than-temporary are recognized in earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than amortized cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an other-than-temporary impairment loss is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). Interest and dividends, including amortization of premiums and accretion of discounts, are recognized as interest or dividend income when earned. Realized gains and losses on sales (using the specific identification method) and declines in value judged to be other-than-temporary are included in noninterest income in the consolidated statements of income. Federal Home Loan Bank Stock Investments in the Federal Home Loan Bank (“FHLB”) stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible other-than-temporary impairment, and the cost basis of this investment is reduced by any declines in value determined to be other-than-temporary. FHLB stock is included in other assets on the consolidated balance sheets. Loans The Company’s accounting method for loans differs depending on whether the loans were originated or purchased and, for purchased loans, whether the loans were acquired at a discount related to evidence of credit deterioration since date of origination. Originated Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are reported at their outstanding principal balance, adjusted for charge-offs, the allowance for loan and lease losses, 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. Accrual of interest is discontinued when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of interest is doubtful, which is generally at 90 days past due. Generally, when loans are placed on nonaccrual status, interest receivable is reversed against interest income in the current period. Interest payments received thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest. The 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 agribusiness 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 changes in fair value of long-term loans and written loan commitments at fair value are reported in noninterest income. 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 grants 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, inventory, property and equipment, residential real estate, income-producing commercial and agricultural properties, and personal guarantees of the borrower or related parties. 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 net gain on sale of loans. 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 net gain on sale of loans. Purchased Loans Loans acquired (non-impaired and impaired) in a business acquisition are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. In determining the acquisition date fair value of purchased loans with evidence of credit deterioration (“purchased impaired loans”), and in subsequent accounting, the Company generally aggregates impaired purchased consumer and certain smaller balance impaired commercial loans into pools of loans with common risk characteristics, while accounting for larger-balance impaired commercial loans individually. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level-yield method. Management estimates the cash flows expected to be collected at acquisition and at subsequent measurement dates using internal risk models, which incorporate the estimate of key assumptions, such as default rates, loss severity, and prepayment speeds. Subsequent to the acquisition date, decreases in cash flows over those expected at the acquisition date are recognized by recording an allowance for loan and lease losses. Subsequent increases in cash flow over those expected at the acquisition date are recognized as reductions to allowance for loan and lease losses to the extent impairment was previously recognized and thereafter as interest income prospectively. For purchased loans not deemed impaired at the acquisition date, the difference between the fair value and the unpaid principal balance of the loan at acquisition date is amortized or accreted to interest income using the effective interest method over the remaining period to contractual maturity. Credit Risk Management 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 categorizes its loan portfolio into six classes, which is the level at which it develops and documents a systematic methodology to determine the allowance for loan and lease losses. The Company’s six loan portfolio classes are commercial real estate, agriculture, commercial non-real estate, residential real estate, consumer and other lending. The commercial real estate lending class includes loans made to small and middle market businesses, including multi-family properties. Loans in this class are generally secured by commercial real estate with cash flows generally being the primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the commercial real estate lending class. Key risk characteristics relevant to the commercial real estate lending class include the industry and geography of the borrower’s business, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The agriculture lending class includes loans made to agricultural individuals and businesses. Loans in this class are generally secured by operating assets and agriculture real estate and guaranteed by owners; cashflows are most often our primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the agriculture lending class. Key risk characteristics relevant to the agriculture lending class include the geography of the borrower’s operations, commodity prices and weather patterns, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The commercial non-real estate lending class includes loans made to small and middle market businesses, and loans made to public sector customers. Loans in this class are generally secured by business assets and guaranteed by owners; cashflows are most often our primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the commercial non-real estate lending class. Key risk characteristics relevant to the commercial non-real estate lending class include the industry and geography of the borrower’s business, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The residential real estate lending class includes loans made to consumer customers including residential mortgages, residential construction loans and home equity loans and lines. These loans are typically fixed rate loans secured by residential real estate. Home equity lines are revolving accounts giving the borrower the ability to draw and repay balances repeatedly, up to a maximum commitment, and are secured by residential real estate. Home equity lines typically have variable rate terms which are benchmarked to a prime rate. Historical loss history is the primary factor in determining the allowance for loan and lease losses for the residential real estate lending class. Key risk characteristics relevant to residential real estate lending class loans primarily relate to the borrower’s capacity and willingness to repay and include unemployment rates and other economic factors, and customer payment history. These risk characteristics, among others, are reflected in the environmental factors considered in determining the allowance for loan and lease losses. The consumer lending class includes loans made to consumer customers including loans secured by automobiles and other installment loans, and the other lending class includes credit card loans and unsecured revolving credit lines. Historical loss history is the primary factor in determining the allowance for loan and lease losses for the consumer and other lending classes. Key risk characteristics relevant to loans in the consumer and other lending classes primarily relate to the borrower’s capacity and willingness to repay and include unemployment rates and other economic factors, and customer payment and overall credit history. These risk characteristics, among others, are reflected in the environmental factors considered in determining the allowance for loan and lease losses. The other lending class includes all other loan relationships that do not fit within the categories above, primarily consumer and commercial credit cards, customer deposit account overdrafts, and lease receivables. The Company assigns all non-consumer loans a credit quality risk rating. These ratings are Pass, Watch, Substandard, Doubtful, and Loss. Loans with a Pass and Watch rating represent those loans not classified on the Company’s rating scale for problem credits, with loans with a Watch rating being monitored and updated at least quarterly by management. Substandard loans are those where a well-defined weakness has been identified that may put full collection of contractual debt at risk. Doubtful loans are those where a well-defined weakness has been identified and a loss of contractual debt is probable. Substandard and doubtful loans are monitored and updated monthly. All loan risk ratings are updated and monitored on a continuous basis. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of consumer loans. Troubled Debt Restructurings (“TDRs”) 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. Our TDRs include performing and nonperforming TDRs, which consist of loans that continue to accrue interest at the loan's original interest rate as we expect 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 we do 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 we move the loan to a performing status (performing TDR). If we do 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 our analysis of the allowance for loan and lease 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. Allowance for Loan and Lease Losses (“ALLL”) and Unfunded Commitments The Company maintains an allowance for loan and lease losses at a level management believes is appropriate to reserve for credit losses inherent in our loan portfolio. The allowance for loan and lease losses is determined based on an ongoing evaluation, driven primarily by monitoring changes in loan risk grades, delinquencies, and other credit risk indicators, which is inherently subjective. The Company considers the uncertainty related to certain industry sectors and the extent of credit exposure to specific borrowers within the portfolio. In addition, consideration is given to concentration risks associated with the various loan portfolios and current economic conditions that might impact the portfolio. The Company also considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry, or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes in unemployment rates, gross domestic product, and consumer bankruptcy filings. All of these estimates are susceptible to significant change. Changes to the allowance for loan and lease losses are made by charges to the provision for loan and lease losses, which is reflected in the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans that are 90 days or more past due are put on nonaccrual status unless a repayment is eminent. Loans deemed to be uncollectible are charged off against the allowance for loan and lease losses. Recoveries of amounts previously charged-off are credited to the allowance for loan and lease losses. The allowance for loan and lease losses consist of reserves for probable losses that have been identified related to specific borrowing relationships that are individually evaluated for impairment (“specific reserve”), as well as probable losses inherent in our loan portfolio that are not specifically identified (“collective reserve”). The specific reserve relates to impaired loans. A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due (interest as well as principal) according to the contractual terms of the loan agreement. Specific reserves are determined on a loan-by-loan basis based on management’s best estimate of the Company's exposure, given the current payment status of the loan, the present value of expected payments, and the value of any underlying collateral. Impaired loans also include loans modified in troubled debt restructurings. Generally, the impairment related to troubled debt restructurings is measured based on the fair value of the collateral, less cost to sell, or the present value of expected payments relative to the unpaid principal balance. If the impaired loan is identified as collateral dependent, then the fair value of the collateral method of measuring the amount of the impairment is utilized. This method requires obtaining an independent appraisal of the collateral and reducing the appraised value by applying a discount factor to the appraised value, if necessary, and including costs to sell. Management’s estimate for collective reserves reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates primarily are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes. The Company maintains an ALLL for acquired impaired loans accounted for under ASC 310-30, resulting from decreases in expected cash flows arising from the periodic revaluation of these loans. Any decrease in expected cash flows in the individual loan pool is generally recognized in the current provision for loan and lease losses. Any increase in expected cash flows is generally not recognized immediately but is instead reflected as an adjustment to the related loan or pool's yield on a prospective basis once any previously recorded provision for loan and lease loss has been recognized. For acquired nonimpaired loans accounted for under ASC 310-20, the Company utilizes methods to estimate the required allowance for loan and lease losses similar to originated loans; the required reserve is compared to the net carrying value of each acquired nonimpaired loan (by class) to determine if a provision is required. 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 other liabilities on the consolidated balance sheets with changes in fair value recorded in other interest income. All other unfunded loan commitments are generally related to providing credit facilities to customers and are not considered derivatives. For purchased loans, the fair value of the unfunded credit commitments is considered in determination of the fair value of the loans recorded at the date of acquisition. Reserves for credit exposure on all other unfunded credit commitments are recorded in other liabilities on the consolidated balance sheets. We maintain a reserve for unfunded commitments at a level we believe to be sufficient to absorb estimated probable losses related to unfunded credit facilities. FDIC Indemnification Asset and Clawback Liability In conjunction with a Federal Deposit Insurance Corporation (“FDIC”) assisted transaction of TierOne Bank in 2010, the Company entered into two loss share agreements with the FDIC, one covering certain single family residential mortgage loans with the claim period ending June 2020 and one covering commercial loans and other assets, in which the claim period ended in June 2015. The agreements cover a portion of realized losses on loans, foreclosed real estate and certain other assets. The Company has recorded assets on the consolidated balance sheets (i.e. indemnification assets) representing estimated future amounts recoverable from the FDIC. Fair values of loans covered by the loss sharing agreements 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 agreements. 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 |
Acquisition Activity
Acquisition Activity | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition Activity | Acquisition Activity On May 16, 2016 , the Company acquired by merger 100% of HF Financial Corp ("HF Financial"), the holding company of Home Federal Bank. Under terms of the agreement, HF Financial's stockholders had the right to receive for each share of HF Financial common stock, at their election (but subject to proration in the event cash or stock is oversubscribed), either (i) 0.6500 share of the Company's common stock, or (ii) $19.50 in cash. The total consideration was prorated as necessary to ensure that 24.29% of the total outstanding shares of HF Financial common stock were exchanged for cash and 75.71% of the total outstanding shares of HF Financial common stock were exchanged for shares of the Company's common stock. The total merger consideration of $142.0 million was paid by the Company in the acquisition, which resulted in goodwill of $41.2 million , as shown in the table below. With this acquisition, the Company expanded its presence in South Dakota and into North Dakota and Minnesota through the addition of 23 bank offices and experienced in-market teams. The following summarizes consideration paid and an allocation of purchase price to net assets acquired. Number of Shares Amount (dollars in thousands) Equity consideration: Common stock issued 3,448,119 $ 107,478 Non-equity consideration: Cash 34,487 Total consideration paid 141,965 Fair value of net assets acquired including identifiable intangible assets 100,749 Goodwill $ 41,216 As of the acquisition date, goodwill of $41.2 million arose from the acquisition as a result of consideration in excess of net assets acquired. No goodwill is expected to be deductible for income tax purposes. The fair value of intangible assets created in the acquisition was $14.5 million related to core deposits and other intangible assets and loan servicing rights. During the fourth quarter of 2016, the Company obtained additional information regarding the valuation of the deferred tax assets, which resulted in an increase in goodwill recognized in the transaction of $0.6 million . There were no adjustments to current period income statement as a result of the adjustment. The following table summarizes the assets acquired and liabilities assumed which were recorded on the consolidated balance sheet as of the date of merger of HF Financial: Fair Value (dollars in thousands) Identifiable assets acquired: Cash and cash equivalents $ 18,818 Investment securities 165,052 Loans 863,741 Premises and equipment 19,220 Accrued interest receivable 4,117 Other repossessed property 4 Intangible assets 7,877 Loan servicing rights 6,573 Other assets 36,076 Total identifiable assets acquired $ 1,121,478 Liabilities assumed: Deposits $ 863,121 FHLB advances and other borrowings 115,881 Subordinated debentures 21,110 Other liabilities 20,617 Total liabilities assumed 1,020,729 Fair value of net identifiable assets acquired 100,749 Net purchase price 141,965 Goodwill $ 41,216 The Company accounted for the aforementioned business combination under the acquisition method in accordance with ASC Topic 805, Business Combinations . Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of acquisition. The Company has made all final adjustments to the purchase price allocation and retrospectively adjusted goodwill recorded. Material adjustments to acquisition date estimated fair values would be recorded in the reporting period in which the adjustment amounts are determined. Determining the fair value of assets and liabilities, particularly illiquid assets and liabilities, is a complicated process involving significant judgment regarding estimates and assumptions used to calculate estimated fair value. Fair value adjustments based on updated estimates could materially affect the goodwill recorded on the acquisition. The Company may incur losses on the acquired loans that are materially different from losses the Company originally projected. The results of the merged HF Financial operations are presented within the Company’s consolidated financial statements from the acquisition date. Acquisition-related transaction expenses associated with the HF Financial acquisition totaled $0.7 million , $15.7 million and $0.0 million for the fiscal years ended September 30, 2017 , 2016 and 2015 , respectively. Supplemental pro forma information (unaudited) The following unaudited pro forma combined results of operations of the Company and HF Financial presents results as if the acquisition had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that the Company would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results. In particular, no adjustments have been made to eliminate the amount of HF Financial's provision for loan and lease losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. For the Year Ended September 30, 2017 2016 2015 (Unaudited, dollars in thousands, except per share data) Net interest income $ 396,347 $ 386,454 $ 370,778 Net income 144,786 126,286 114,731 Basic earnings per share 2.46 2.23 2.00 Fully diluted earnings per share 2.45 2.23 2.00 In the acquisition, the Company acquired $863.7 million of loans at fair value, net of $28.5 million , or 3.30% , estimated discount to the outstanding principal balance. Of the total loans acquired, management identified $65.4 million that were considered to be credit impaired and are accounted for under ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management's estimate of expected total cash payments and fair value of the loans as of acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments. Amount (Unaudited, dollars in thousands) Contractually required principal and interest $ 83,710 Non-accretable difference (28,516 ) Cash flows expected to be collected 55,194 Accretable yield (3,662 ) Total purchased credit impaired loans acquired $ 51,532 The following table presents the acquired loan data for the HF Financial acquisition. Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected (Unaudited, dollars in thousands) Acquired receivables subject to ASC 310-30 $ 51,532 $ 83,710 $ 28,516 Acquired receivables not subject to ASC 310-30 812,209 998,255 9,572 |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash Equivalents The Company is required to maintain reserve balances in cash and on deposit with the Federal Reserve based on a percentage of transactional deposits. The total requirement was approximately $26.9 million and $94.9 million at September 30, 2017 and 2016 , respectively. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The amortized cost and approximate fair value of investments in securities, all of which are classified as available for sale according to management’s intent, are summarized as follows: Amortized Cost Gross Gross Estimated Fair Value (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 228,039 $ 579 $ (15 ) $ 228,603 Mortgage-backed securities: Government National Mortgage Association 511,457 228 (6,635 ) 505,050 Federal National Mortgage Association 339,394 97 (2,534 ) 336,957 Small Business Assistance Program 224,005 726 (1,001 ) 223,730 States and political subdivision securities 73,041 187 (642 ) 72,586 Corporate debt securities — — — — Other 1,006 28 — 1,034 Total $ 1,376,942 $ 1,845 $ (10,827 ) $ 1,367,960 Amortized Cost Gross Gross Estimated Fair Value (dollars in thousands) As of September 30, 2016 U.S. Treasury securities $ 227,007 $ 3,973 $ — $ 230,980 Mortgage-backed securities: Government National Mortgage Association 664,529 3,172 (1,922 ) 665,779 Federal National Mortgage Association 210,933 1,324 — 212,257 Small Business Assistance Program 142,921 2,362 — 145,283 States and political subdivision securities 55,525 123 (164 ) 55,484 Corporate debt securities 4,998 24 — 5,022 Other 1,006 49 — 1,055 Total $ 1,306,919 $ 11,027 $ (2,086 ) $ 1,315,860 The amortized cost and approximate fair value of debt securities available for sale as of September 30, 2017 and 2016 , 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, 2017 September 30, 2016 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (dollars in thousands) Due in one year or less $ 91,535 $ 91,597 $ 3,706 $ 3,709 Due after one year through five years 193,117 193,373 262,333 266,312 Due after five years through ten years 16,306 16,097 21,369 21,343 Due after ten years 122 122 122 122 301,080 301,189 287,530 291,486 Mortgage-backed securities 1,074,856 1,065,737 1,018,383 1,023,319 Securities without contractual maturities 1,006 1,034 1,006 1,055 Total $ 1,376,942 $ 1,367,960 $ 1,306,919 $ 1,315,860 Proceeds from sales of securities available for sale were $5.1 million , $145.9 million and $105.2 million for the years ended September 30, 2017 , 2016 and 2015 respectively. Gross gains (pre-tax) of $0.1 million , $0.5 million and $0.8 million and gross losses (pre-tax) of $0.0 million , $0.0 million and $0.5 million were realized on the sales for the years ended September 30, 2017 , 2016 and 2015 , respectively, using the specific identification method. The Company recognized no other-than-temporary impairment for the year ended September 30, 2017 . The Company recognized an other-than-temporary impairment included in net gain on sale of securities in the consolidated statements of income of $0.4 million on two security holdings attributable to credit for the year ended September 30, 2016 . There was no other-than-temporary impairment recognized for the year ended September 30, 2015 . Securities with an estimated fair value of approximately $951.4 million and $971.3 million at September 30, 2017 and 2016 , 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. As detailed in the following tables, certain investments in debt securities, which are approximately 68% and 25% of the Company’s investment portfolio at September 30, 2017 and 2016 , respectively, are reported in the consolidated financial statements at an amount less than their amortized cost. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, implicit or explicit government guarantees, and information obtained from regulatory filings, management believes the declines in fair value of these securities are temporary. As the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis, which may be maturity, the Company does not consider the securities to be other-than-temporarily impaired at September 30, 2017 or 2016 . The following table presents the Company’s gross unrealized losses and approximate fair value in investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 10,003 $ (15 ) $ — $ — $ 10,003 $ (15 ) Mortgage-backed securities 635,969 (5,425 ) 241,368 (4,746 ) 877,337 (10,171 ) States and political subdivision securities 21,705 (197 ) 25,773 (444 ) 47,478 (641 ) Total $ 667,677 $ (5,637 ) $ 267,141 $ (5,190 ) $ 934,818 $ (10,827 ) Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) As of September 30, 2016 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Mortgage-backed securities 17,528 (6 ) 284,995 (1,916 ) 302,523 (1,922 ) States and political subdivision securities 27,933 (164 ) — — 27,933 (164 ) Total $ 45,461 $ (170 ) $ 284,995 $ (1,916 ) $ 330,456 $ (2,086 ) As of September 30, 2017 and 2016 , the Company had 249 and 110 securities, respectively, in an unrealized loss position. |
Loans
Loans | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans | Loans The composition of net loans as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Commercial real estate $ 4,124,805 $ 3,754,107 Agriculture 2,122,138 2,168,937 Commercial non-real estate 1,718,914 1,673,166 Residential real estate 932,892 1,020,958 Consumer 66,559 76,273 Other 43,207 42,477 Ending balance 9,008,515 8,735,918 Less: Unamortized discount on acquired loans (29,121 ) (39,947 ) Unearned net deferred fees and costs and loans in process (10,841 ) (13,327 ) Total $ 8,968,553 $ 8,682,644 The loan breakouts above include loans covered by FDIC loss sharing agreements totaling $57.5 million and $73.3 million as of September 30, 2017 and 2016 , respectively, residential real estate loans held for sale totaling $7.5 million and $12.9 million at September 30, 2017 and 2016 , respectively, and $1.02 billion and $1.13 billion of loans accounted for at fair value as of September 30, 2017 and 2016 , respectively. Unearned net deferred fees and costs totaled $11.6 million and $8.6 million as of September 30, 2017 and 2016 , respectively. Loans in process represent loans that have been funded as of the balance sheet dates but not classified into a loan category and loan payments received as of the balance sheet dates that have not been applied to individual loan accounts. Loans in process totaled $(0.8) million and $4.7 million as of September 30, 2017 and 2016 , respectively. Loans guaranteed by agencies of the U.S. government totaled $168.3 million and $120.0 million at September 30, 2017 and 2016 , respectively. Principal balances of residential real estate loans sold totaled $280.5 million and $291.2 million for the years ended September 30, 2017 and 2016 , respectively. Nonaccrual The following table presents the Company’s nonaccrual loans at September 30, 2017 and 2016 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of September 30, 2017 and 2016 were $1.9 million and $2.0 million , respectively. September 30, 2017 2016 Nonaccrual loans (dollars in thousands) Commercial real estate $ 14,693 $ 13,870 Agriculture 99,325 66,301 Commercial non-real estate 13,674 27,280 Residential real estate 4,421 5,962 Consumer 112 223 Total $ 132,225 $ 113,636 Credit Quality Information The composition of the loan portfolio by internally assigned grade is as follows as of September 30, 2017 and 2016 . This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 : As of September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 3,519,689 $ 1,577,403 $ 1,369,803 $ 853,266 $ 65,673 $ 43,207 $ 7,429,041 Watchlist 80,195 157,407 31,878 4,158 187 — 273,825 Substandard 37,627 130,953 21,438 7,368 306 — 197,692 Doubtful 521 119 3,841 242 — — 4,723 Loss — — — — — — — Ending balance 3,638,032 1,865,882 1,426,960 865,034 66,166 43,207 7,905,281 Loans covered by FDIC loss sharing agreements — — — 57,537 — — 57,537 Total $ 3,638,032 $ 1,865,882 $ 1,426,960 $ 922,571 $ 66,166 $ 43,207 $ 7,962,818 As of September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 3,276,048 $ 1,514,344 $ 1,093,913 $ 919,224 $ 75,065 $ 42,477 $ 6,921,071 Watchlist 81,148 204,326 37,283 4,741 110 — 327,608 Substandard 57,415 130,569 42,319 10,885 417 — 241,605 Doubtful 147 630 395 130 — — 1,302 Loss — — — — — — — Ending balance 3,414,758 1,849,869 1,173,910 934,980 75,592 42,477 7,491,586 Loans covered by FDIC loss sharing agreements — — — 73,272 — — 73,272 Total $ 3,414,758 $ 1,849,869 $ 1,173,910 $ 1,008,252 $ 75,592 $ 42,477 $ 7,564,858 Past Due Loans The following table presents the Company’s past due loans at September 30, 2017 and 2016 . This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 . 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Current Total As of September 30, 2017 (dollars in thousands) Commercial real estate $ 876 $ 22,536 $ 6,504 $ 29,916 $ 3,608,116 $ 3,638,032 Agriculture 1,453 3,181 20,844 25,478 1,840,404 1,865,882 Commercial non-real estate 2,485 115 8,580 11,180 1,415,780 1,426,960 Residential real estate 1,428 76 951 2,455 862,579 865,034 Consumer 71 24 18 113 66,053 66,166 Other — — — — 43,207 43,207 Ending balance 6,313 25,932 36,897 69,142 7,836,139 7,905,281 Loans covered by FDIC loss sharing agreements 998 54 738 1,790 55,747 57,537 Total $ 7,311 $ 25,986 $ 37,635 $ 70,932 $ 7,891,886 $ 7,962,818 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Current Total As of September 30, 2016 (dollars in thousands) Commercial real estate $ 1,765 $ 1,959 $ 3,745 $ 7,469 $ 3,407,289 $ 3,414,758 Agriculture (26 ) 709 11,549 12,232 1,837,637 1,849,869 Commercial non-real estate 1,588 5,515 9,594 16,697 1,157,213 1,173,910 Residential real estate 828 548 2,063 3,439 931,541 934,980 Consumer 209 20 28 257 75,335 75,592 Other — — — — 42,477 42,477 Ending balance 4,364 8,751 26,979 40,094 7,451,492 7,491,586 Loans covered by FDIC loss sharing agreements 1,404 1,173 367 2,944 70,328 73,272 Total $ 5,768 $ 9,924 $ 27,346 $ 43,038 $ 7,521,820 $ 7,564,858 Impaired Loans The following table presents the Company’s impaired loans. This table excludes purchased credit impaired loans and loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 : As of September 30, 2017 As of September 30, 2016 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 20,819 $ 24,893 $ 3,621 $ 29,965 $ 32,349 $ 3,846 Agriculture 79,219 88,268 11,468 71,501 80,842 12,278 Commercial non-real estate 17,950 28,755 4,779 34,526 35,283 6,475 Residential real estate 5,177 5,874 2,581 6,244 6,886 3,000 Consumer 280 287 86 383 393 87 Total impaired loans with an allowance recorded 123,445 148,077 22,535 142,619 155,753 25,686 With no allowance recorded: Commercial real estate 16,652 69,677 — 24,040 24,660 — Agriculture 51,256 64,177 — 30,339 31,907 — Commercial non-real estate 13,983 38,924 — 15,299 16,469 — Residential real estate 2,574 9,613 — 4,120 5,807 — Consumer 13 950 — 12 12 — Total impaired loans with no allowance recorded 84,478 183,341 — 73,810 78,855 — Total impaired loans $ 207,923 $ 331,418 $ 22,535 $ 216,429 $ 234,608 $ 25,686 The average recorded investment on impaired loans and interest income recognized on impaired loans for the years ended September 30, 2017 , 2016 and 2015 , respectively, are as follows: For the year ended September 30, 2017 September 30, 2016 September 30, 2015 Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status (dollars in thousands) Commercial real estate $ 42,347 $ 2,163 $ 70,266 $ 3,876 $ 69,918 $ 3,936 Agriculture 131,026 5,503 100,052 6,502 42,599 1,953 Commercial non-real estate 41,489 1,485 45,592 1,971 49,561 3,092 Residential real estate 8,900 453 11,773 576 12,523 588 Consumer 369 47 309 55 241 35 Total $ 224,131 $ 9,651 $ 227,992 $ 12,980 $ 174,842 $ 9,604 Valuation adjustments made to repossessed properties for the years ended September 30, 2017 and 2016 , totaled $1.7 million and $1.8 million , respectively. The adjustments are included in noninterest expense. Troubled Debt Restructurings Included in certain loan categories in the impaired loans are troubled debt restructurings (“TDRs”) that were classified as impaired. These TDRs do not include purchased credit impaired loans. When the Company grants concessions to borrowers such as reduced interest rates or extensions of loan periods that would not be considered other than because of borrowers’ financial difficulties, the modification is considered a TDR. Specific reserves included in the allowance for loan and lease losses for TDRs were $8.8 million and $9.3 million at September 30, 2017 and 2016 , respectively. Commitments to lend additional funds to borrowers whose loans were modified in a TDR were $0.0 million and $0.9 million as of September 30, 2017 and 2016 , respectively. The following table presents the recorded value of the Company’s TDR balances as of September 30, 2017 and 2016 : September 30, 2017 September 30, 2016 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 1,121 $ 5,351 $ 18,250 $ 2,356 Agriculture 22,678 59,633 19,823 28,688 Commercial non-real estate 8,369 5,641 8,102 4,789 Residential real estate 311 688 370 937 Consumer 11 21 23 8 Total $ 32,490 $ 71,334 $ 46,568 $ 36,778 The following table presents a summary of all accruing loans restructured in TDRs during the years ended September 30, 2017 , 2016 and 2015 , respectively: September 30, 2017 September 30, 2016 September 30, 2015 Recorded Investment Recorded Investment Recorded Investment Number Pre- Post- Number Pre- Post- Number Pre- Post- (dollars in thousands) Commercial real estate Rate modification — $ — $ — — $ — $ — — $ — $ — Term extension 2 3,726 3,726 2 1,897 1,897 — — — Payment modification — — — — — — 6 22,232 22,232 Bankruptcy — — — — — — 1 477 477 Other — — — 3 6,714 6,714 — — — Total commercial real estate 2 3,726 3,726 5 8,611 8,611 7 22,709 22,709 Agriculture Rate modification — — — — — — — — — Term extension 9 18,072 18,072 16 27,134 27,134 2 1,410 1,410 Payment modification 1 102 102 4 989 989 7 18,551 18,551 Bankruptcy — — — — — — — — — Other 3 728 728 — — — — — — Total agriculture 13 18,902 18,902 20 28,123 28,123 9 19,961 19,961 Commercial non-real estate Rate modification — — — 1 49 49 — — — Term extension 2 613 613 5 120 120 2 2,296 2,296 Payment modification 6 1,281 1,281 2 948 948 4 1,709 1,709 Bankruptcy — — — — — — — — — Other 1 150 150 4 8,500 8,500 — — — Total commercial non-real estate 9 2,044 2,044 12 9,617 9,617 6 4,005 4,005 Residential real estate Rate modification — — — — — — 1 13 13 Term extension — — — 1 42 42 2 53 53 Payment modification 1 9 9 — — — — — — Bankruptcy — — — — — — 1 19 19 Other — — — — — — — — — Total residential real estate 1 9 9 1 42 42 4 85 85 Consumer Rate modification — — — — — — — — — Term extension — — — — — — — — — Payment modification — — — — — — 1 17 17 Bankruptcy 1 8 8 — — — 1 6 6 Other — — — — — — — — — Total consumer 1 8 8 — — — 2 23 23 Total accruing 26 $ 24,689 $ 24,689 38 $ 46,393 $ 46,393 28 $ 46,783 $ 46,783 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to charge-offs at time of modification — $ — $ — — $ — $ — — $ — $ — The following table presents a summary of all non-accruing loans restructured in TDRs during the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 September 30, 2016 September 30, 2015 Recorded Investment Recorded Investment Recorded Investment Number Pre- Post- Number Pre- Post- Number Pre- Post- (dollars in thousands) Commercial real estate Rate modification — $ — $ — — $ — $ — — $ — $ — Term extension — — — — — — 2 740 740 Payment modification — — — — — — 2 1,082 1,082 Bankruptcy — — — — — — — — — Other — — — — — — — — — Total commercial real estate — — — — — — 4 1,822 1,822 Agriculture Rate modification — — — — — — — — — Term extension 12 19,062 19,062 1 101 100 — — — Payment modification 4 565 565 4 932 887 1 229 229 Bankruptcy — — — — — — — — — Other 2 570 570 1 95 95 — — — Total agriculture 18 20,197 20,197 6 1,128 1,082 1 229 229 Commercial Non-Real Estate Rate modification — — — — — — 1 32 — Term extension 2 2,389 2,389 — — — 5 257 180 Payment modification 1 1,399 1,399 2 760 760 2 22 3 Bankruptcy — — — — — — — — — Other — — — — — — — — — Total commercial non-real estate 3 3,788 3,788 2 760 760 8 311 183 Residential real estate Rate modification — — — — — — 1 67 67 Term extension — — — — — — 3 169 169 Payment modification 1 21 21 3 254 253 1 19 19 Bankruptcy 1 112 112 — — — 1 39 39 Other — — — — — — 1 24 8 Total residential real estate 2 133 133 3 254 253 7 318 302 Consumer Rate modification — — — — — — — — — Term extension 3 21 21 — — — 2 1 — Payment modification — — — — — — — — — Bankruptcy — — — 1 8 8 — — — Other — — — — — — — — — Total consumer 3 21 21 1 8 8 2 1 — Total non-accruing 26 $ 24,139 $ 24,139 12 $ 2,150 $ 2,103 22 $ 2,681 $ 2,536 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to charge-offs at time of modification — $ — $ — 7 $ 47 $ — 5 $ 145 $ — The table below represents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the years ended September 30, 2017 , 2016 and 2015 , respectively. September 30, 2017 September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Commercial real estate — $ — — $ — — $ — Agriculture 2 8,383 2 7,307 — — Commercial non-real estate 1 — 2 275 2 — Residential real estate — — 1 — 1 8 Consumer — — 1 8 2 — Total 3 $ 8,383 6 $ 7,590 5 $ 8 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 above 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. In 2017 , 2016 and 2015 , $5.5 million , $22.3 million , and $14.5 million respectively, of loans were removed from TDR status as they were restructured at market terms and are performing. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 12 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The following tables present the Company’s allowance for loan and lease losses roll forward for the years ended September 30, 2017 , 2016 and 2015 . September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2016 $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 Charge-offs (2,043 ) (7,853 ) (12,576 ) (809 ) (196 ) (2,403 ) (25,880 ) Recoveries 485 415 652 507 102 1,041 3,202 Provision 643 7,965 13,048 (761 ) (15 ) 1,330 22,210 (Improvement) impairment of ASC 310-30 loans (90 ) 115 — (696 ) — — (671 ) Ending balance September 30, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2015 $ 18,014 $ 13,952 $ 15,996 $ 8,025 $ 348 $ 865 $ 57,200 Charge-offs (3,625 ) (4,294 ) (2,629 ) (1,157 ) (206 ) (2,255 ) (14,166 ) Recoveries 719 556 1,429 495 149 1,305 4,653 Provision 3,148 14,901 (1,736 ) 419 147 1,132 18,011 Improvement of ASC 310-30 loans (310 ) — (70 ) (676 ) — — (1,056 ) Ending balance September 30, 2016 $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 September 30, 2015 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2014 $ 16,884 $ 10,655 $ 10,550 $ 8,342 $ 264 $ 823 $ 47,518 Charge-offs (1,971 ) (606 ) (11,153 ) (238 ) (129 ) (1,617 ) (15,714 ) Recoveries 1,339 131 3,407 231 104 1,143 6,355 Provision 1,325 3,772 13,122 849 134 516 19,718 (Impairment) improvement of ASC 310-30 loans 437 — 70 (1,159 ) (25 ) — (677 ) Ending balance September 30, 2015 $ 18,014 $ 13,952 $ 15,996 $ 8,025 $ 348 $ 865 $ 57,200 The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of September 30, 2017 and 2016 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $1.02 billion measured at fair value, loans held for sale of $7.5 million , and guaranteed loans of $168.3 million for September 30, 2017 and loans measured at fair value of $1.13 billion , loans held for sale of $12.9 million , and guaranteed loans of $120.0 million for September 30, 2016 . As of September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,621 $ 11,468 $ 4,779 $ 2,581 $ 86 $ — $ 22,535 Collectively evaluated for impairment 12,638 14,174 9,335 2,570 243 1,015 39,975 ASC 310-30 loans 682 115 — 196 — — 993 Total allowance $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Financing Receivables Individually evaluated for impairment $ 37,471 $ 130,475 $ 31,933 $ 7,751 $ 293 $ — $ 207,923 Collectively evaluated for impairment 3,487,232 1,702,634 1,333,888 854,330 65,207 43,207 7,486,498 ASC 310-30 loans 30,099 7,174 1,920 52,736 666 — 92,595 Loans Outstanding $ 3,554,802 $ 1,840,283 $ 1,367,741 $ 914,817 $ 66,166 $ 43,207 $ 7,787,016 As of September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,846 $ 12,278 $ 6,475 $ 3,000 $ 87 $ — $ 25,686 Collectively evaluated for impairment 13,328 12,837 6,515 3,199 351 1,047 37,277 ASC 310-30 loans 772 — — 907 — — 1,679 Total allowance $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 Financing Receivables Individually evaluated for impairment $ 54,005 $ 101,840 $ 49,825 $ 10,364 $ 395 $ — $ 216,429 Collectively evaluated for impairment 3,249,974 1,721,219 1,079,295 918,710 74,301 42,477 7,085,976 ASC 310-30 loans 44,448 15,254 3,196 65,737 896 — 129,531 Loans Outstanding $ 3,348,427 $ 1,838,313 $ 1,132,316 $ 994,811 $ 75,592 $ 42,477 $ 7,431,936 For acquired loans not accounted for under ASC 310-30 (purchased non-impaired), the Company utilizes specific and collective reserve calculation methods similar to originated loans. The required ALLL for these loans is included in the individually evaluated for impairment bucket of the ALLL if the loan is rated substandard or worse, and in the collectively evaluated for impairment bucket for pass rated loans. The Company maintains an ALLL for acquired loans accounted for under ASC 310-30 as a result of impairment to loan pools arising from the periodic re-valuation of these loans. Any impairment in the individual pool is generally recognized in the current period as provision for loan and lease losses. Any improvement in the estimated cash flows, is generally not recognized immediately, but is instead reflected as an adjustment to the related loan pools yield on a prospective basis once any previously recorded impairment has been recaptured. The ALLL for ASC 310-30 loans totaled $1.0 million at September 30, 2017 , compared to $1.7 million at September 30, 2016 . During fiscal year 2017 , loan pools accounted for under ASC 310-30 had a net reversal of provision of $0.7 million primarily as a result of updated assumption applied to one of the acquired residential real estate pools which resulted in higher than expected future cash flows. Net provision reversals for fiscal year 2016 totaled $1.1 million as a result of increases in expected cash flows. Net provision reversals for fiscal year 2015 totaled $0.7 million as a result of increases in expected cash flows. The reserve for unfunded loan commitments was $0.5 million at September 30, 2017 and 2016 , respectively, and is recorded in other liabilities on the consolidated balance sheets. |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | Accounting for Certain Loans Acquired with Deteriorated Credit Quality In June 2010 and May 2016 , the Company acquired certain loans that had deteriorated credit quality (ASC 310-30 loans). Loan accounting specific to these purchased credit impaired loans addresses differences between contractual cash flows expected to be collected from the initial investment in loans if those differences are attributable, at least in part, to credit quality. Several factors were considered when evaluating whether a loan was considered a purchased credit impaired loan, including the delinquency status of the loan, updated borrower credit status, geographic information, and updated loan-to-values (“LTV”). U.S. GAAP allows purchasers to aggregate purchased credit impaired loans acquired in the same fiscal quarter in one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Loan pools are periodically reassessed to determine expected cash flows. In determining the expected cash flows, the timing of cash flows and prepayment assumptions for smaller, homogeneous loans are based on statistical models that take into account factors such as the loan interest rate, credit profile of the borrowers, the years in which the loans were originated, and whether the loans are fixed or variable rate loans. Prepayments may be assumed on large individual loans that consider similar prepayment factors listed above for smaller homogeneous loans. The re-assessment of purchased credit impaired loans resulted in the following changes in the accretable yield during the fiscal years ended September 30, 2017 and 2016 : September 30, 2017 2016 2015 (dollars in thousands) Balance at beginning of year $ 38,124 $ 44,489 $ 50,889 Acquisition — 3,662 — Accretion (13,847 ) (9,971 ) (13,645 ) Reclassification from (to) nonaccretable difference 19,854 (56 ) 8,363 Disposals — — (1,118 ) Balance at end of year $ 44,131 $ 38,124 $ 44,489 The reclassifications from nonaccretable difference noted in the table above represent instances where specific pools of loans are expected to perform better over the remaining lives of the loans than expected at the prior re-assessment date. The reclassification to nonaccretable difference noted in the table above represents instances where specific pools of loans are estimated to have a shortfall in the expected future cash flows compared to the contractual cash flows at the prior re-assessment date. The following table provides purchased impaired loans at September 30, 2017 and September 30, 2016 : September 30, 2017 September 30, 2016 Outstanding Balance 1 Recorded Investment 2 Carrying Value 3 Outstanding 1 Recorded 2 Carrying 3 (dollars in thousands) Commercial real estate $ 110,797 $ 30,099 $ 29,417 $ 129,615 $ 44,448 $ 43,676 Agriculture 10,463 7,174 7,059 19,174 15,254 15,254 Commercial non-real estate 9,825 1,920 1,920 11,588 3,196 3,196 Residential real estate 61,981 52,736 52,540 76,696 65,737 64,830 Consumer 798 666 666 1,033 896 896 Total lending $ 193,864 $ 92,595 $ 91,602 $ 238,106 $ 129,531 $ 127,852 1 Represents the legal balance of ASC 310-30 loans. 2 Represents the book balance of ASC 310-30 loans. 3 Represents the book balance of ASC 310-30 loans net of the related allowance for loan and lease losses. |
FDIC Indemnification Asset
FDIC Indemnification Asset | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
FDIC Indemnification Asset | FDIC Indemnification Asset Under the terms of the purchase and assumption agreement with the FDIC with regard to the TierOne Bank acquisition, the Company is reimbursed for a portion of the losses incurred on covered assets. As covered assets are resolved, whether it be through repayment, short sale of the underlying collateral, the foreclosure on or sale of collateral, or the sale or charge-off of loans or OREO, any differences between the carrying value of the covered assets versus the payments received during the resolution process, that are reimbursable by the FDIC, are recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduce or increase, respectively, the amount recoverable from the FDIC. The following table represents a summary of the activity related to the FDIC indemnification asset for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Balance at beginning of year $ 10,777 $ 14,722 $ 26,678 Amortization (4,748 ) (3,836 ) (7,552 ) Changes in expected reimbursements from FDIC for changes in expected credit losses (45 ) (278 ) (305 ) Changes in reimbursable expenses (986 ) (791 ) (1,972 ) Payments (reimbursements) of covered losses from the FDIC 706 960 (2,127 ) Balance at end of year $ 5,704 $ 10,777 $ 14,722 The loss claims filed are subject to review, approval, and annual audits by the FDIC or its assigned agents for compliance with the terms in the loss sharing agreements. The commercial loss share agreement claim period ended on June 4, 2015. The non-commercial loss share agreement ends June 4, 2020. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2017 and 2016 , are as follows: September 30, 2017 2016 (dollars in thousands) Land $ 25,973 $ 26,591 Buildings and building improvements 89,927 94,306 Furniture and equipment 26,160 27,597 Construction in progress 273 768 Total 142,333 149,262 Accumulated depreciation (30,124 ) (30,756 ) Premise and equipment, net $ 112,209 $ 118,506 Depreciation expense was $7.6 million , $7.5 million and $8.5 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. Included in the premises and equipment is $5.1 million and $8.1 million of property held for sale as of September 30, 2017 and 2016 , respectively. The Company measures assets held for sale at the lower of carrying amount or estimated fair value, there was no impairment charge recognized as of September 30, 2017 . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Company uses interest rate swaps to manage its interest rate risk and market risk in accommodating the needs of its customers. Also, the Company 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. Derivative instruments are recognized as either assets or liabilities in the accompanying consolidated financial statements and are measured at fair value. The following table summarizes the notional amounts and estimated fair values of the Company’s derivative instruments at September 30, 2017 and 2016 . September 30, 2017 Notional Balance Sheet Positive Fair Negative Fair Derivatives not designated as hedging instruments: (dollars in thousands) Interest rate swaps $ 1,061,545 Liabilities $ 1,850 $ (19,005 ) Mortgage loan commitments 37,765 Assets — (48 ) Mortgage loan forward sale contracts 43,628 Liabilities 48 — September 30, 2016 Notional Balance Sheet Positive Fair Negative Fair Derivatives not designated as hedging instruments: (dollars in thousands) Interest rate swaps $ 1,055,822 Liabilities $ 525 $ (81,974 ) Mortgage loan commitments 52,333 Assets 66 — Mortgage loan forward sale contracts 60,529 Liabilities — (66 ) 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. Amounts due from swap counterparties to reclaim cash collateral under the interest rate swap master netting arrangements have not been offset against the derivative balances. Credit-risk-related contingent features The Company has agreements with its derivative counterparties that contain a provision where if the Company 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 would be required to settle its obligations under the agreements. As of September 30, 2017 and 2016 , the termination value of derivatives in a net liability position related to these agreements was $20.3 million and $84.4 million , respectively, which includes accrued interest but excludes any adjustment for nonperformance risk. The Company has minimum collateral posting thresholds with its derivative counterparties and as of September 30, 2017 and 2016 the Company had posted $25.0 million and $106.1 million , respectively, in eligible collateral. At September 30, 2017 and 2016 , the Company had $4.6 million and $0.0 million , respectively, in cash collateral pledged to derivative counterparties, which was held in an interest bearing deposit account and is included in cash in the consolidated balance sheet. The effect of derivatives on the consolidated statements of income for the years ended September 30, 2017 , 2016 and 2015 was as follows: Amount of Gain (Loss) Recognized in Income September 30, Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income 2017 2016 2015 (dollars in thousands) Interest rate swaps Noninterest income $ 49,900 $ (48,658 ) $ (62,088 ) Mortgage loan commitments Noninterest income (48 ) 66 95 Mortgage loan forward sale contracts Noninterest income 48 (66 ) (95 ) Netting of Derivatives The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company has entered into an International Swaps and Derivatives Association ("ISDA") master netting arrangement with various swap counterparties. Under the terms of the master netting arrangements, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the non-defaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. The following tables present the Company's gross derivative financial assets and liabilities at September 30, 2017 and 2016 , and the related impact of enforceable master netting arrangements and cash collateral, where applicable: Gross Amount Amount Offset Net Amount Presented in Consolidated Balance Sheets Held/Pledged Financial Instruments 1 Net Amount September 30, 2017 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 1,850 $ (1,850 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (19,005 ) 1,850 (17,155 ) 17,155 — Total derivative financial liabilities $ (17,155 ) $ — $ (17,155 ) $ 17,155 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. Gross Amount Net Amount Held/Pledged 1 Net September 30, 2016 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 525 $ (525 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (81,974 ) 525 (81,449 ) 81,449 — Total derivative financial liabilities $ (81,449 ) $ — $ (81,449 ) $ 81,449 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. |
The Fair Value Option For Certa
The Fair Value Option For Certain Loans | 12 Months Ended |
Sep. 30, 2017 | |
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 and written loan commitments 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 25 for additional disclosures regarding the fair value of the fair value option loans and written loan commitments. Long-term loans and written loan commitments 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 $8.8 million and $74.1 million at September 30, 2017 and 2016 , respectively. The total unpaid principal balance of these long-term loans was approximately $1.01 billion and $1.06 billion at September 30, 2017 and 2016 , respectively. The fair value of these loans and written loan commitments 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, 2017 and 2016 , there were loans with a fair value of $14.7 million and $9.4 million , respectively, which were greater than 90 days past due or in nonaccrual status with an unpaid principal balance of $17.0 million and $10.8 million , respectively. Changes in fair value for items for which the fair value option has been elected and the line items in which these changes are reported within the consolidated statements of income are as follows for the years ended September 30, 2017 , 2016 and 2015 (in thousands): September 30, 2017 2016 2015 Noninterest Total Changes Noninterest Total Changes Noninterest Total Changes (dollars in thousands) Long-term loans and written loan commitments $ (65,231 ) $ (65,231 ) $ 26,314 $ 26,314 $ 36,742 $ 36,742 For long-term loans and written loan commitments at September 30, 2017 , 2016 and 2015 , approximately $0.9 million , $1.6 million and $0.2 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, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A summary of changes to the carrying amount of goodwill as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Balance, beginning of year $ 739,023 $ 697,807 Goodwill acquired during the year — 41,216 Balance, end of year $ 739,023 $ 739,023 The goodwill acquired in 2016 was a result of the HF Financial acquisition. See Note 2 for further information. The Company performs an impairment analysis annually, and more frequently whenever events or changes in circumstances indicate that it is more likely than not fair value is less than carrying value. To test impairment, an analysis is performed by comparing the fair value of the Company to the carrying amount of its net assets. Fair value is based on the best information available, such as present value of future cash flows or multiple of earnings techniques. In the fourth quarter of fiscal year 2017, the Company elected to early adopt ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removed Step 2 of the goodwill impairment test. The adoption of this standard had no impact to the consolidated financial statements. For the years ended September 30, 2017 , 2016 and 2015 , the Company did not recognize any impairment related to goodwill. |
Core Deposits and Other Intangi
Core Deposits and Other Intangibles | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposits and Other Intangibles | Core Deposits and Other Intangibles A summary of intangible assets subject to amortization as of September 30, 2017 and 2016 is as follows: Core Deposit Brand Customer Other Total As of September 30, 2017 (dollars in thousands) Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (61,258 ) (5,264 ) (16,089 ) (124 ) (82,735 ) Net intangible assets $ 5,760 $ 3,200 $ — $ 414 $ 9,374 As of September 30, 2016 Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (59,842 ) (4,700 ) (15,800 ) (35 ) (80,377 ) Net intangible assets $ 7,176 $ 3,764 $ 289 $ 503 $ 11,732 Amortization expense of intangible assets was $2.4 million , $3.3 million and $7.1 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in subsequent fiscal years is as follows: Amount (dollars in thousands) 2018 $ 1,662 2019 1,538 2020 1,430 2021 1,334 2022 1,249 2023 and thereafter 2,161 Total $ 9,374 |
Loan Servicing Rights
Loan Servicing Rights | 12 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Loan Servicing Rights | Loan Servicing Rights Mortgage loans serviced for others are not included in the accompanying consolidated statements of financial condition. The following table is the activity for loan servicing rights and the related valuation allowance: September 30, 2017 2016 2015 (dollars in thousands) Loan servicing rights Beginning of year $ 5,794 $ — $ — Acquired in HF Financial acquisition — 6,573 — Additions — — — Amortization 1 (1,639 ) (779 ) — End of year $ 4,155 $ 5,794 $ — Valuation allowance Beginning of year $ (13 ) $ — $ — Additions / (reductions) 1 (68 ) (13 ) — End of year $ (81 ) $ (13 ) $ — Loan servicing rights, net $ 4,074 $ 5,781 $ — Servicing fees received $ 2,033 $ 930 $ — Balance of loans serviced at: Beginning of year 868,865 — — End of year 722,461 868,865 — 1 Changes to carrying amounts are reported net of loan servicing income on the consolidated statements of income for the periods presented. Amortization of servicing rights is adjusted each quarter based upon analysis of portfolio attributes and factors, including an evaluation of historical prepayment activity and prospective industry consensus data. An independent third party is utilized to calculate the amortization and valuation based upon specific loan characteristics, prepayment speeds generated from a validation model utilizing both empirical and market derived data and discount rates. At September 30, 2017 , the constant prepayment rates (CPR) used to calculate the amortization averaged 12.5% . For valuation purposes, an average discount rate of 11.9% was utilized at September 30, 2017 . Based on the Company's analysis of mortgage servicing rights, a $0.1 million valuation reserve was recorded at September 30, 2017 , and a $0.0 million valuation reserve was recorded at September 30, 2016 and 2015 . |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The composition of deposits as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Noninterest-bearing demand $ 1,856,126 $ 1,880,512 NOW accounts, money market and savings 5,847,432 5,343,183 Time deposits, $250,000 or more 273,365 265,904 Other time deposits 1,000,690 1,115,191 Total $ 8,977,613 $ 8,604,790 At September 30, 2017 and 2016 , the Company had $725.4 million and $641.4 million , respectively, in brokered deposits. At September 30, 2017 , the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2018. Amount (dollars in thousands) 2018 $ 768,026 2019 273,140 2020 126,145 2021 60,644 2022 44,339 2023 and thereafter 1,761 Total $ 1,274,055 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Sep. 30, 2017 | |
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 $139.3 million and $151.8 million and fair value of approximately $137.4 million and $152.3 million at September 30, 2017 and 2016 , respectively. In most cases, 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, 2017 and 2016 . September 30, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase agreements (dollars in thousands) Municipal securities $ 3,626 $ — $ — $ — $ 3,626 Mortgage-backed securities 129,010 — — — 129,010 Total repurchase agreements $ 132,636 $ — $ — $ — $ 132,636 September 30, 2016 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase agreements (dollars in thousands) Municipal securities $ — — $ — $ — $ — — $ — Mortgage-backed securities 138,744 — — 2,944 141,688 Total repurchase agreements $ 138,744 $ — $ — $ 2,944 $ 141,688 |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 12 Months Ended |
Sep. 30, 2017 | |
Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings FHLB advances and other borrowings consist of the following at September 30, 2017 and 2016 : September 30, 2017 2016 (dollars in thousands) Short-term borrowings: Notes payable to Federal Home Loan Bank (FHLB), interest rates from 1.25% to 1.27% and maturity dates of October 2017, collateralized by real estate loans and FHLB stock, with various call dates at the option of the FHLB $ 512,200 $ — Federal Home Loan Bank fed funds advance, interest rate of 1.33%, maturity date of October 2018 75,000 231,000 Long-term borrowings: Notes payable to Federal Home Loan Bank (FHLB), interest rates from 1.05% to 3.66% and maturity dates from April 2018 to July 2023, collateralized by real estate loans and FHLB stock, with various call dates at the option of the FHLB 56,000 640,000 Total 643,200 871,000 Fair value adjustment 1 $ 14 $ 37 Total FHLB advances and other borrowings $ 643,214 $ 871,037 1 Adjustment reflects the fair value adjustments related to the FHLB advances and notes payable assumed as part of the HF Financial acquisition. The Company has a $10.0 million revolving line of credit which expires on July 28, 2018 . The line of credit has an interest rate of one month LIBOR plus 200 basis points , with interest payable monthly. There is also an unused line fee of 0.15% on the unused portion which is payable quarterly. The interest rate was 3.24% at September 30, 2017 . There were no outstanding advances on this line of credit at September 30, 2017 and 2016 . As of September 30, 2017 , the Company had a borrowing capacity of $1.89 billion with the FRB Discount Window. Principal balances of loans pledged to FRB Discount Window to collateralize the borrowing totaled $2.55 billion at September 30, 2017 and $0.0 million at September 30, 2016 . The Company has secured this line for contingency funding. As of September 30, 2017 and September 30, 2016 , based on our Federal Home Loan Bank stock holdings, the combined aggregate additional borrowing capacity of the Company with the Federal Home Loan Bank was $1.55 billion and $1.09 billion , respectively. Principal balances of loans pledged to the Federal Home Loan Bank to collateralize notes payable totaled $3.71 billion and $3.11 billion at September 30, 2017 and 2016 , respectively. As of September 30, 2017 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows: Amount (dollars in thousands) 2018 $ 543,200 2019 75,000 2020 — 2021 — 2022 — 2023 and thereafter 25,000 Total $ 643,200 |
Subordinated Debentures and Sub
Subordinated Debentures and Subordinated Notes Payable | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Subordinated Notes Payable | Subordinated Debentures and Subordinated Notes Payable Junior Subordinated Deferrable Interest Debentures The Company has caused seven trusts to be created that have issued Company Obligated Mandatorily Redeemable Preferred Securities (the "Preferred Securities"). These trusts are described herein. The sole assets of the trusts are junior subordinated deferrable interest debentures (the "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, 2017 and 2016 , $73.5 million and $77.2 million , respectively, of Debentures were eligible for treatment as Tier 1 capital. The Company caused to be issued 22,400 shares, $1,000 par value, of Company Obligated Mandatorily Redeemable Preferred Securities (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 Company Obligated Mandatorily Redeemable Preferred Securities (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, 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 Company Obligated Mandatorily Redeemable Preferred Securities (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 Company Obligated Mandatorily Redeemable Preferred Securities (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 Company Obligated Mandatorily Redeemable Preferred Securities (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 Company Obligated Mandatorily Redeemable Preferred Securities (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. 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 Company Obligated Mandatorily Redeemable Preferred Securities (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. In the first quarter of fiscal year 2017 the Company redeemed 5,000 shares of the HF Capital Trust V Debentures under the First Supplemental Indenture dated May 13, 2016. Relating to the trusts, the Company held as assets $2.5 million in common shares at September 30, 2017 and 2016 , which are included in other assets on the consolidated balance sheets. Subordinated Notes Payable In 2015, the Company issued $35.0 million of 4.875% fixed-to-floating rate subordinated notes that mature on August 15, 2025 through a private placement. The notes, which qualify as Tier 2 capital under capital rules in effect at September 30, 2017 , have an interest rate of 4.875% per annum, payable semi-annually on each February 15 and August 15 , which commenced February 15, 2016 until August 15, 2020 , to but excluding the maturity date or date of earlier redemption, the notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 3.15% , payable quarterly on each November 15 , February 15 , April 15 and August 15 . The notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Company's subsidiary bank. The Company may elect to redeem the notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after August 15, 2020 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of bankruptcy, insolvency or reorganization. Unamortized debt issuance costs related to these notes, which are included in Subordinated Debentures and Subordinated Notes Payable, totaled $0.2 million and $0.3 million at September 30, 2017 and 2016 , respectively. Proceeds from the private placement of subordinated notes repaid outstanding subordinated debt. Subordinated debentures and subordinated notes payable are summarized as follows: September 30, 2017 September 30, 2016 Amount outstanding Common Shares Held in Other Assets Amount outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to nonconsolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GWB Capital 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 10,310 310 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 80,920 $ 2,520 Less: fair value adjustment 1 (2,409 ) (3,765 ) Total junior subordinated debentures payable, net of fair value adjustment 73,511 77,155 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (209 ) (282 ) Total subordinated notes payable 34,791 34,718 Total subordinated debentures and subordinated notes payable $ 108,302 $ 111,873 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes charged to operations consists of the following for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Currently paid or payable Federal $ 56,171 $ 51,749 $ 38,105 State 10,639 8,677 7,342 Total 66,810 60,426 45,447 Deferred tax (benefit) expense Federal 2,477 (1,513 ) 6,688 State 154 $ (50 ) $ 352 Total 2,631 (1,563 ) 7,040 Total provision for income taxes $ 69,441 $ 58,863 $ 52,487 The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to pretax income due to the following for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Income tax expense computed at the statutory rate $ 74,979 $ 63,041 $ 56,543 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 7,015 5,608 4,772 Tax exempt interest income (7,973 ) (7,534 ) (6,560 ) Tax benefit of stock-based compensation plans (2,153 ) — — Other (2,427 ) (2,252 ) (2,268 ) Income tax expense, as reported $ 69,441 $ 58,863 $ 52,487 Net deferred tax assets (liabilities) consist of the following components at September 30, 2017 and 2016 : September 30, 2017 2016 (dollars in thousands) Deferred tax assets: Allowance for loan and lease losses $ 23,730 $ 24,016 Compensation 6,227 6,306 Net operating loss carryforward — 17 Securities available for sale 3,413 — Other real estate owned 763 1,231 Core deposit intangible and other fair value adjustments 6,058 7,303 Excess tax basis of FDIC indemnification asset and clawback liability 4,563 2,514 Excess tax basis of loans acquired over carrying value 9,417 12,896 Other reserves 4,406 2,989 Other 6,922 4,580 Total deferred tax assets 65,499 61,852 Deferred tax liabilities: Goodwill and other intangibles (13,784 ) (11,555 ) Securities available for sale — (3,398 ) Premises and equipment (8,828 ) (7,758 ) Other (487 ) (795 ) Total deferred tax liabilities (23,099 ) (23,506 ) Net deferred tax assets $ 42,400 $ 38,346 At September 30, 2017 the Company had an income tax receivable from the IRS of $4.6 million , which is included in other assets on the consolidated balance sheets. At September 30, 2016 , the Company had an income tax receivable from the IRS of $0.2 million and an income tax payable of $1.6 million to National Americas Holdings, LLC (the parent company of NAI prior to its dissolution), the net of which is included in other assets on the consolidated balance sheets. Management has determined a valuation reserve is not required for the deferred tax assets as of September 30, 2017 and 2016 because it is more likely than not these assets could be realized through carry back to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income. Due to the HF Financial acquisition, the Company maintains an unrecaptured tax bad debt reserve of approximately $4.8 million related to HF Financial’s pre-1987 tax bad debt reserve for which no deferred federal income tax liability has been recognized. These amounts represent an allocation of income to bad debt deductions for tax purposes only. If the Bank no longer qualifies as a bank, or in the event of a liquidation of the Bank, income would be created for tax purposes only, which would be subject to the then current corporate income tax rate. The unrecorded deferred income tax liability on the above amount for financial statement purposes is approximately $1.8 million . Uncertain tax positions were not significant at September 30, 2017 or 2016 . 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 2013. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Profit Sharing Plan The Company participates in a multiple employer 401(k) profit sharing plan (the Plan). All employees are eligible to participate, beginning with the first day of the month coincident with or immediately following the completion of one year of service and having reached the age of 21 . In addition to employee contributions, the Company may contribute discretionary amounts for eligible participants. Contribution rates for participating employees must be equal. The Company contributed $5.3 million , $4.7 million and $ 4.0 million to the Plan for the years ended September 30, 2017 , 2016 and 2015 , respectively. Defined Benefit Plan The Company acquired a noncontributory (cash balance) defined benefit pension plan from HF Financial which covers former employees of HF Financial and its wholly-owned subsidiaries. Effective July 1, 2015, the plan was frozen which eliminates future contributions for qualified individuals. On November 27, 2017, the Company's Board of Directors (the Board) voted to terminate the Plan, effective February 1, 2018. In order to settle its liabilities under the Plan, the Company will offer participants the option to receive either an annuity purchased from an insurance carrier or a lump-sum cash payment. If the total $3.1 million value of the Plan's cash assets is insufficient to cover the lump-sum payouts and annuity purchases, the Company will contribute the necessary funds to complete the termination of the Plan. In addition to plan assets, the Company has a $2.3 million pension liability recorded as of September 30, 2017. The required final contribution is subject to a number of factors, including changes in interest rates and the exact proportion of participants electing a lump-sum distribution versus an annuity. The Company estimates that the total benefit payments will be $5.4 million as part of Plan termination. At this time, the Company is unable to estimate the net income or expense associated with terminating the plan, but believes the amount will not be material to the financial statements. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by the end of fiscal third quarter 2018. Once this process is complete, the Company will no longer have any remaining pension obligations and thus no periodic pension expense. The following table sets forth the pension plan funded status, using the valuation date of September 30, 2017 : September 30, 2017 2016 (dollars in thousands) Changes in benefit obligations: Benefit obligations, beginning of year $ 6,355 — Acquired in HF Financial acquisition — 8,642 Service cost 50 21 Interest cost 223 176 Benefits paid (803 ) (2,677 ) Plan changes — — Assumption changes (286 ) 265 Actuarial loss (167 ) (72 ) Benefit obligations, end of year $ 5,372 $ 6,355 September 30, 2017 2016 (dollars in thousands) Changes in plan assets: Fair value of plan assets, beginning of year $ 3,359 $ — Acquired in HF Financial acquisition — 5,642 Actual return on plan assets 277 226 Company contributions 260 168 Benefits paid (803 ) (2,677 ) Fair value of plan assets, end of year $ 3,093 $ 3,359 Funded status 1 $ (2,279 ) $ (2,996 ) Amounts recognized in accumulated other comprehensive income (loss) consists of net gain $ 329 $ — Accumulated benefit obligation $ 5,372 $ 6,355 1 Amounts included in other liabilities in the consolidated balance sheets. Information relative to the components of net periodic benefit cost measured at/or for the fiscal years ended September 30, 2017 , 2016 and 2015 for the defined benefit plan is presented below: September 30, 2017 2016 2015 (dollars in thousands) Net periodic benefit cost Service cost $ 50 $ 21 $ — Interest cost 223 176 — Expected return on plan assets (258 ) (190 ) — Amortization of prior losses — 50 — Net periodic benefit cost $ 15 $ 57 $ — Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net gain 329 — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 314 $ (57 ) $ — The weighted-average assumptions used to determine benefit obligations are as follows as of September 30, 2017 and 2016 : September 30, 2017 2016 Discount rate - pre-retirement 3.83 % 3.57 % Discount rate - post-retirement 3.83 % 3.57 % Rate of compensation increase 1 N/A N/A 1 Effective July 1, 2015, the plan was frozen whereby the rate of compensation increases, which relate to future additional contributions to the plan, are not applicable in the future. The weighted-average assumptions used to determine net periodic benefit costs are as follows as of September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 Discount rate - pre-retirement 3.83 % 3.57 % — % Discount rate - post-retirement 3.83 % 3.57 % — % Rate of compensation increase 4.00 % 4.00 % — % Expected long-term return on plan assets 8.00 % 8.00 % — % The assumed expected long-term rate of return on pension assets used in the calculation for 2017 pension plan expense was 8.00% . Determination of the plan's expected long-term rate of return is based on the current asset allocation of the plan, as well as the historical and expected returns on each asset class. The expected long-term rate of return reflects forward-looking economic forecasts. Due to pending termination of the Plan on February 1, 2018 described above, all plan assets have been transferred to cash and cash equivalents to minimize market risk prior to final benefit payments to plan participants. Fair Value Actual Asset Mix as a % of Market Value Target Asset Mix as a % of Market Value As of September 30, 2017 (dollars in thousands) Equities $ — — % 55.00 % 1 Fixed — — % 30.00 % 2 Other — — % 10.00 % 3 Cash and cash equivalents 3,093 100 % 5.00 % 2 Total pension plan assets $ 3,093 100.00 % 100.00 % As of September 30, 2016 Equities $ 2,200 65.50 % 55.00 % 1 Fixed 1,130 33.63 % 30.00 % 2 Other — — % 10.00 % 3 Cash and cash equivalents 29 0.87 % 5.00 % 2 Total pension plan assets $ 3,359 100.00 % 100.00 % 1 Includes a plus/minus range of 10.0% 2 Includes a plus/minus range of 5.0% 3' Maximum allocation of 10.0% The following table shows the fair values of the Company's pension plan assets by asset category at September 30, 2017 . Information about the valuation techniques and inputs used to measure fair value is provided in Note 25 Fair Value Measurements. Fair Value Level 1 Level 2 Level 3 As of September 30, 2017 (dollars in thousands) Cash and cash equivalents $ 3,093 $ 3,093 $ — $ — Equity securities: Domestic fund — — — — International fund — — — — Emerging markets fund — — — — Fixed income securities: International fixed income fund — — — — Taxable fixed income fund — — — — Total pension plan assets $ 3,093 $ 3,093 $ — $ — As of September 30, 2016 Cash and cash equivalents $ 29 $ 29 $ — $ — Equity securities: Domestic fund 1,499 1,499 — — International fund 551 551 — — Emerging markets fund 150 150 — — Fixed income securities: International fixed income fund 310 310 — — Taxable fixed income fund 820 820 — — Total pension plan assets $ 3,359 $ 3,359 $ — $ — The following estimated future benefit payments are expected to be paid during the fiscal years ended September 30 : Amount (dollars in thousands) 2018 $ 5,400 2019 — 2020 — 2021 — 2022 — Total $ 5,400 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On September 26, 2014, the Board of Directors adopted, and on October 10, 2014 NAB, at that time our controlling shareholder, approved the Great Western Bancorp, Inc. 2014 Omnibus Incentive Compensation Plan (the “2014 Plan”), the Great Western Bancorp, Inc. 2014 Non-Employee Director Plan (the “2014 Director Plan”), and the Great Western Bancorp, Inc. Executive Incentive Compensation Plan (the “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. 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 (typically 3 years ) has been met and/or 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. Effective with the adoption of ASU 2016-09 at the beginning of the fiscal year, 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 years ended September 30, 2017 , 2016 and 2015 stock compensation expense was $6.5 million , $3.5 million and $1.2 million respectively. Related income tax benefits recognized for the years ended September 30, 2017 , 2016 and 2015 were $2.5 million , $1.3 million and $0.5 million , respectively. The following is a summary of the Plans’ restricted share and performance-based stock award activity as of September 30, 2017 and 2016 . The number of performance shares granted is reflected in the below table at the amount of achievement of the pre-established targets. September 30, 2017 September 30, 2016 Common Shares Weighted-Average Grant Date Fair Value Common Shares Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 160,335 $ 26.89 80,446 $ 18.18 Granted 90,363 39.35 113,543 30.95 Vested and issued (68,293 ) 26.97 (25,729 ) 18.11 Forfeited (2,068 ) 30.91 (7,925 ) 25.09 Canceled — — — — Restricted shares, end of fiscal year 180,337 $ 33.06 160,335 $ 26.89 Vested, but not issuable at end of fiscal year 29,287 $ 30.05 24,480 $ 26.14 Performance Shares Performance shares, beginning of fiscal year 236,185 $ 20.28 211,026 $ 18.00 Granted 137,612 39.43 43,371 30.78 Vested and issued (235,055 ) 18.00 (55 ) 18.00 Forfeited (5,138 ) 19.80 (18,157 ) 18.83 Canceled — — — — Performance shares, end of fiscal year 133,604 $ 33.39 236,185 $ 20.28 As of September 30, 2017 , there was $4.9 million of unrecognized compensation cost related to nonvested restricted stock awards expected to be recognized over a period of 2.2 years. The fair value of the vested awards at September 30, 2017 , was $1.2 million . |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [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. On January 1, 2015, the Company became subject to Basel III rules, which include transition provisions through January 1, 2019. The rules include new risk-based capital and leverage ratios and revise the definition of what constitutes "capital" for purposes of calculating those ratios. The minimum capital level requirements applicable to the Company are now: (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 new regulatory 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 will increase by that amount each year until fully implemented in January 2019. An institution would be 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, 2017 and 2016 . As of September 30, 2017 , 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, 2017 and 2016 , the Bank met these requirements. Capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well Capitalized Under Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2017 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,101,899 11.4 % $ 579,947 6.0 % N/A N/A Bank 1,112,466 11.6 % 575,413 6.0 % $ 767,218 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,200,885 12.5 % 768,566 8.0 % N/A N/A Bank 1,176,451 12.2 % 771,443 8.0 % 964,304 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,101,899 10.3 % 427,922 4.0 % N/A N/A Bank 1,112,466 10.4 % 427,872 4.0 % 534,839 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,028,389 10.7 % 432,500 4.5 % N/A N/A Bank $ 1,112,466 11.6 % $ 431,560 4.5 % $ 623,365 6.5 % As of September 30, 2016 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,001,873 11.1 % $ 541,553 6.0 % N/A N/A Bank 1,023,386 11.3 % 543,391 6.0 % $ 724,521 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,101,997 12.2 % 722,621 8.0 % N/A N/A Bank 1,088,511 12.0 % 725,674 8.0 % 907,093 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,001,873 9.5 % 421,841 4.0 % N/A N/A Bank 1,023,386 9.7 % 422,015 4.0 % 527,519 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 924,718 10.2 % 407,964 4.5 % N/A N/A Bank $ 1,023,386 11.3 % $ 407,543 4.5 % $ 588,673 6.5 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Commitments to extend credit $ 2,515,653 $ 2,158,041 Letters of credit 70,186 61,802 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 $2.3 million and $2.6 million loans repurchased for the year ended September 30, 2017 and 2016 , respectively. Incurred losses related to these repurchased loans and guaranteed loans as of September 30, 2017 and 2016 , 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 eastern and northern 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 nonagricultural 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 December 31, 2032. The Company has the option to renew these leases for periods that range from 1 to 15 years . Total rent expense for these leases for the years ended September 30, 2017 , 2016 and 2015 , was $5.4 million , $5.1 million and $4.8 million , respectively. Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows: Amount (dollars in thousands) 2018 $ 5,157 2019 4,523 2020 3,863 2021 2,737 2022 2,157 2023 and thereafter 6,629 Total $ 25,066 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 our 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 our 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 our financial condition, results of operations or cash flows, potentially materially. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 . Prior to the initial public offering of shares of its common stock in October 2014, the Company was an indirect wholly-owned subsidiary of NAB. Between October 2014 and July 2015, NAB divested itself of all holdings of the Company's common stock. Interest paid to related parties for notes payable as discussed above was $0.0 million , $0.0 million and $0.8 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. In connection with the IPO, the Company and NAB entered into a Transitional Services Agreement which governs the continued provision of certain services to us by NAB or its affiliates for the applicable transition period. These services included acting as a counterparty to us on specified interest rate swaps consistent with past practice and providing fair value calculations related to specified loans and interest rate swaps, access to certain reporting systems and applications, certain risk, credit rating and tax oversight previously provided to us by a branch of NAB and certain insurance coverage under NAB’s group-wide insurance policies. Payments under this agreement were approximately $0.0 million , $0.0 million and $0.2 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. NAB agreed to continue to act as a counterparty to us on previously contracted interest rate swaps and provide fair value calculations related to specified loans and interest rate swaps consistent with past practice, and certain insurance coverage under NAB’s group-wide insurance policies until October 1, 2016. NAB has provided the Company’s employees with restricted shares of NAB stock subsequent to meeting short- and long-term incentive goals. A payable was recorded between the Company and NAB based on the value and vesting schedule of issued shares. Final vesting of the shares occurs in December 2017. The liability included in accrued expenses on the consolidated balance sheets was $0.1 million and $0.1 million at September 30, 2017 and 2016 , respectively. The expense related to the restricted shares was $0.1 million , $0.1 million and $0.1 million for the years ended September 30, 2017 , 2016 and 2015 , respectively, and was included within salaries and employee benefits on the consolidated statements of income. Prior to the initial public offering, our Chief Financial Officer and Chief Risk Officer were employees of NAB and its subsidiary, Bank of New Zealand, respectively. In connection with the IPO, the Company entered into employment agreements with our Chief Financial Officer and Chief Risk Officer, whose employment with NAB or Bank of New Zealand, as applicable, terminated. Additionally, the Company’s Chief Credit Officer was a NAB employee and the Head of Credit-Agribusiness was a Bank of New Zealand employee, both of whom were temporarily seconded to work with the Company beginning in November 2010 and December 2010, respectively, and continued through December 31, 2014. The Company has generally been responsible for paying the salary and benefits of these individuals while they were or continue to be NAB or Bank of New Zealand employees, however certain of these expenses are reimbursable by NAB. Expenses reimbursed by the Company to NAB in connection with these employees totaled $0.0 million , $0.0 million and $0.4 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. During fiscal year 2014, NAB apportioned to its U.S. operations, including the Company, certain costs associated with NAB’s compliance with rules implemented pursuant to authority granted under the Dodd-Frank Act. These costs were apportioned based on the aggregate amount of assets of each of NAB’s U.S. operations relative to the total assets of all of NAB’s U.S. operations. During the years ended September 30, 2017 , 2016 and 2015 , the Company paid NAB approximately $0.0 million , $0.0 million and $0.2 million , respectively, related to these apportioned costs. In connection with the IPO, other than certain audit-related expenses paid by the Company, NAB has paid or will reimburse all fees and expenses the Company incurred in connection with the IPO. These expenses totaled $0.0 million , $0.0 million and $0.9 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. The Company’s Chief Executive Officer’s son owned a 22.5% interest in Sioux Falls Financial Services, LLC, which leases to the Company certain property in South Dakota used as an operations center. The lease agreement for this property commenced on April 1, 2011 and contains standard terms for similar lease arrangements. The interest was sold in April 2015. Payments under this lease totaled approximately $0.0 million , $0.0 million and $0.1 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Level 1 inputs are considered to be the most transparent and reliable and Level 3 inputs are considered to be the least transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (Level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the actual financial instrument or of the underlying collateral. Although in some instances, third party price indications may be available, limited trading activity can challenge the observability of these quotations. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Securities Available for Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows and classified as Level 2 securities. Level 2 securities include agency, mortgage-backed, states and political subdivisions, corporate debt, and other securities. Where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. 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 hedge the interest rate risk and an adjustment for credit risk based on our assessment of existing market conditions for the specific portfolio of loans. This is used due to the strict prepayment penalties put in the loan terms to cover the cost of exiting the hedge 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. 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, 2017 and September 30, 2016 : Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 228,603 $ 228,603 $ — $ — Mortgage-backed securities 1,065,737 — 1,065,737 — States and political subdivision securities 72,586 — 71,517 1,069 Corporate debt securities — — — — Other 1,034 — 1,034 — Total securities available for sale $ 1,367,960 $ 228,603 $ 1,138,288 $ 1,069 Derivatives-assets $ 48 $ — $ 48 $ — Derivatives-liabilities 17,107 — 17,107 — Fair value loans and written loan commitments 1,016,576 — 1,016,576 — As of September 30, 2016 U.S. Treasury securities $ 230,980 $ 230,980 $ — $ — Mortgage-backed securities 1,023,319 — 1,023,319 — States and political subdivision securities 55,484 — 54,169 1,315 Corporate debt securities 5,022 — 5,022 — Other 1,055 — 1,055 — Total securities available for sale $ 1,315,860 $ 230,980 $ 1,083,565 $ 1,315 Derivatives-assets $ 66 $ — $ 66 $ — Derivatives-liabilities 81,515 — 81,515 — Fair value loans and written loan commitments 1,131,111 — 1,131,111 — The following table presents the changes in Level 3 financial instruments for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Balance, beginning of year $ 1,315 $ 1,835 $ 2,029 Additions — 15 — Principal paydown (246 ) (235 ) (195 ) Unrealized gain included in other comprehensive income — — 1 Realized loss on securities — (300 ) — Balance, end of year $ 1,069 $ 1,315 $ 1,835 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 Real Estate Owned (OREO) Other real estate owned consists of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate. OREO 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. 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). Property Held for Sale This real estate property is carried in premises and equipment as property held for sale at fair value based upon the transactional price if available, or the appraised value of the property. The following tables present the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2017 and 2016 : Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2017 Other real estate owned $ 7,728 $ — $ — $ 7,728 Impaired loans 185,388 — — 185,388 Loans held for sale, at lower of cost or fair value 7,456 — 7,456 — Loan servicing rights 4,074 — — 4,074 Property held for sale 5,147 — — 5,147 As of September 30, 2016 Other real estate owned $ 6,911 $ — $ — $ 6,911 Impaired loans 190,743 — — 190,743 Loans held for sale, at lower of cost or fair value 12,918 — 12,918 — Loan servicing rights 5,781 — — 5,781 Property held for sale 8,112 — — 8,112 The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2017 were as follows: Fair Value of Assets / (Liabilities) at September 30, 2017 Valuation Unobservable Range Weighted (dollars in thousands) Other real estate owned $ 7,728 Appraisal value Property specific adjustment N/A N/A Impaired loans $ 185,388 Appraisal value Property specific adjustment N/A N/A Loan servicing rights $ 4,074 Discounted cash flows Constant prepayment rate 9.7 - 23.0% 12.5% Property held for sale $ 5,147 Appraisal value Property specific adjustment N/A N/A Disclosures about Fair Value of Financial Instruments For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate are assumed to have a fair value that approximates carrying value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. The short maturity of the Company’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following consolidated balance sheet categories: cash and cash equivalents, securities sold under agreements to repurchase, and accrued interest. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered 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. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. 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 balance sheet instruments as of September 30, 2017 and 2016 , are as follows: September 30, 2017 September 30, 2016 Level in Carrying Fair Value Carrying Fair Value (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 360,396 $ 360,396 $ 524,611 $ 524,611 Loans, net excluding fair valued loans and loans held for sale Level 3 7,881,018 7,798,134 7,473,973 7,433,851 Accrued interest receivable Level 2 53,176 53,176 49,531 49,531 Cash surrender value of life insurance policies Level 2 29,619 29,619 29,166 29,166 Federal Home Loan Bank stock Level 2 37,551 37,551 47,025 47,025 Liabilities Deposits Level 2 $ 8,977,613 $ 8,978,926 $ 8,604,790 $ 8,603,708 FHLB advances and other borrowings Level 2 643,214 645,421 871,037 874,763 Securities sold under repurchase agreements Level 2 132,636 132,636 141,688 141,688 Accrued interest payable Level 2 4,405 4,405 4,074 4,074 Subordinated debentures and subordinated notes payable Level 2 108,302 108,293 111,873 112,826 The following methods and assumptions were used in estimating the fair value of financial instruments that were not previously disclosed: Cash and c ash equivalents: Due to the short term nature of cash and cash equivalents, the estimated fair value is equal to the carrying value and they are categorized as a Level 1 fair value measurement. Loans, net excluding fair valued loans and loans held for sale: The fair value of the loan portfolio is estimated using observable inputs including estimated cash flows, and discount rates based on interest rates currently being offered for loans with similar terms, to borrowers of similar credit quality. Loans held for investment are categorized as a Level 3 fair value measurement. Accrued interest receivable: Due to the nature of accrued interest receivable, the estimated fair value is equal to the carrying value and they are categorized as a Level 2 fair value measurement. Cash Surrender Value of Life Insurance Policies: Fair value is equal to the cash surrender value of the life insurance policies. Federal Home Loan Bank stock: The carrying amount of FHLB stock approximates its fair value as it can only be redeemed with the FHLB at par value. Federal Home Loan Bank stock has been categorized as a Level 2 fair value measurement. Deposits: The estimated fair value of deposits with no stated maturity, such as non-interest bearing demand deposits, savings, NOW, and money market accounts, is equal to the amount payable on demand. The fair value of interest-bearing time deposits is based on the discounted value of contractual cash flows of such deposits, taking into account the option for early withdrawal. The discount rate is estimated using the rates offered by the Company, at the respective measurement dates, for deposits of similar maturities. Deposits have been categorized as a Level 2 fair value measurement. FHLB advances and other borrowings: The fair value of FHLB advances and other borrowings is estimated using discounted cash flow analysis, based on current incremental borrowing rates for similar types of borrowing arrangements. In the absence of a reasonably precise methodology to determine the fair value of the credit agreement, carrying value has been used to represent fair value. FHLB advances and other borrowings have been categorized as a Level 2 fair value measurement. Securities sold under repurchase agreements: The Company’s repurchase agreements are overnight transactions that mature the day after the transaction, and as a result of this short-term nature, the estimated fair value equals the carrying value. Securities sold under repurchase agreements have been categorized as a Level 2 fair value measurement. Accrued interest payable: Due to the nature of accrued interest payable, the estimated fair value is equal to the carrying value and they are categorized as a Level 2 fair value measurement. Subordinated Debentures and Subordinated Notes Payable: The fair value of subordinated debentures and subordinated notes payable is estimated using discounted cash flow analysis, based on current incremental debt rates. Subordinated debentures and subordinated notes payable have been categorized as a Level 2 fair value measurement. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding determined for the basic earnings per share calculation plus the dilutive effect of stock compensation using the treasury stock method. The following information was used in the computation of basic and diluted earnings per share (EPS) for the years ended September 30, 2017 , 2016 and 2015 . September 30, 2017 2016 2015 (dollars in thousands, except per share data) Net income $ 144,786 $ 121,253 $ 109,065 Weighted average common shares outstanding 58,770,708 56,563,438 57,455,693 Dilutive effect of stock based compensation 258,674 165,912 45,185 Weighted average common shares outstanding for diluted earnings per share calculation 59,029,382 56,729,350 57,500,878 Basic earnings per share $ 2.46 $ 2.14 $ 1.90 Diluted earnings per share $ 2.45 $ 2.14 $ 1.90 The Company had 0 and 36,696 shares of unvested performance stock as of September 30, 2017 and 2016 , respectively, 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 0 and 54,207 shares of anti-dilutive stock awards outstanding as of September 30, 2017 and 2016 , respectively. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only 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, 2017 2016 (dollars in thousands) Assets Cash and cash equivalents $ 15,004 $ 6,521 Investment in subsidiaries 1,839,293 1,762,070 Accrued interest receivable 9 8 Net deferred tax assets 1,502 855 Other assets 8,506 7,685 Total assets $ 1,864,314 $ 1,777,139 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,302 $ 111,873 Accrued interest payable 465 431 Accrued expenses and other liabilities 547 1,444 Total liabilities 109,314 113,748 Stockholders’ equity Common stock 588 587 Additional paid-in capital 1,314,039 1,312,347 Retained earnings 445,747 344,923 Accumulated other comprehensive income (5,374 ) 5,534 Total stockholders’ equity 1,755,000 1,663,391 Total liabilities and stockholders’ equity $ 1,864,314 $ 1,777,139 Condensed Statements of Comprehensive Income (Dollars in Thousands) Years Ended September 30, 2017 2016 2015 (dollars in thousands) Income Dividends from subsidiary bank $ 62,470 $ 70,582 $ 88,647 Dividends on securities 123 223 304 Other 62 48 53 Total income 62,655 70,853 89,004 Expenses Interest on related party notes payable — — 771 Interest on subordinated debentures and subordinated notes payable 4,464 3,737 1,557 Salaries and employee benefits 6,847 3,723 1,547 Professional fees 631 378 722 Acquisition expenses — 1,010 — Other 2,204 2,512 2,224 Total expense 14,146 11,360 6,821 Income before income tax and equity in undistributed net income of subsidiaries 48,509 59,493 82,183 Income tax benefit (8,147 ) (3,414 ) (2,850 ) Income before equity in undistributed net income of subsidiaries 56,656 62,907 85,033 Equity in undistributed net income of subsidiaries 88,130 58,346 24,032 Net income $ 144,786 $ 121,253 $ 109,065 Condensed Statements of Cash Flows (Dollars in Thousands) Years Ended September 30, 2017 2016 2015 (dollars in thousands) Operating Activities Net income $ 144,786 $ 121,253 $ 109,065 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 165 36 12 Gain on redemption of subordinated debentures (111 ) — — Stock-based compensation 6,810 3,517 1,236 Deferred income taxes (1,796 ) 3 (5,351 ) Changes in: Accrued interest receivable (1 ) (3 ) — Other assets (822 ) (187 ) 2,510 Accrued interest and other liabilities 286 225 264 Equity in undistributed net income of subsidiaries (88,130 ) (58,346 ) (24,032 ) Net cash provided by operating activities 61,187 66,498 83,704 Investing activities Business acquisitions, net of cash acquired — (30,832 ) — Net cash used in investing activities — (30,832 ) — Financing Activities Proceeds from issuance of subordinated notes payable, net — — 34,632 Redemption of subordinated debentures (3,625 ) — — Payment of related party notes payable — — (41,295 ) Common stock repurchased (5,605 ) — (60,000 ) Dividends paid (43,474 ) (31,419 ) (20,520 ) Net cash used in financing activities (52,704 ) (31,419 ) (87,183 ) Net increase (decrease) in cash and cash equivalents 8,483 4,247 (3,479 ) Cash and cash equivalents, beginning of year 6,521 2,274 5,753 Cash and cash equivalents, end of year $ 15,004 $ 6,521 $ 2,274 |
Nature of Operations and Summ36
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Segment Reporting | The “Segment Reporting” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 accounting principles generally accepted in the United States (“U.S. 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 (“VIE”) under U.S. 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 in the Company’s consolidated financial statements. Certain previously reported amounts have been reclassified to conform to the current presentation. |
Use of Estimates | U.S. GAAP requires management makes estimates and assumptions that affect the amounts reported in 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 events described above, there were no other material events that would require recognition in 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 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 loan and lease 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 in 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 | The Company classifies securities upon purchase in one of three categories: trading, held to maturity, or available for sale. Debt and equity securities held for resale are classified as trading. Debt securities for which the Company has the ability and positive intent to hold until maturity are classified as held to maturity. 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. Held to maturity securities are stated at amortized cost, which represents actual cost adjusted for premium amortization and discount accretion. Available for sale securities are stated at fair value, with unrealized gains and losses, net of related taxes, included in stockholders’ equity as a component of accumulated other comprehensive income (loss). 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 in the consolidated statements of income. Purchases and sales of securities are recognized on a trade date basis. The cost of securities sold is based on the specific identification method. Declines in the fair value of investment securities available for sale that are deemed to be other-than-temporary are recognized in earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than amortized cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an other-than-temporary impairment loss is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). Interest and dividends, including amortization of premiums and accretion of discounts, are recognized as interest or dividend income when earned. Realized gains and losses on sales (using the specific identification method) and declines in value judged to be other-than-temporary are included in noninterest income in the consolidated statements of income. |
Federal Home Loan Bank stock | Investments in the Federal Home Loan Bank (“FHLB”) stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible other-than-temporary impairment, and the cost basis of this investment is reduced by any declines in value determined to be other-than-temporary. FHLB stock is included in other assets on the consolidated balance sheets. |
Loans | The Company’s accounting method for loans differs depending on whether the loans were originated or purchased and, for purchased loans, whether the loans were acquired at a discount related to evidence of credit deterioration since date of origination. Originated Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are reported at their outstanding principal balance, adjusted for charge-offs, the allowance for loan and lease losses, 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. Accrual of interest is discontinued when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of interest is doubtful, which is generally at 90 days past due. Generally, when loans are placed on nonaccrual status, interest receivable is reversed against interest income in the current period. Interest payments received thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Loans are removed from nonaccrual status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest. The 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 agribusiness 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 changes in fair value of long-term loans and written loan commitments at fair value are reported in noninterest income. 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 grants 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, inventory, property and equipment, residential real estate, income-producing commercial and agricultural properties, and personal guarantees of the borrower or related parties. 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 net gain on sale of loans. 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 net gain on sale of loans. Purchased Loans Loans acquired (non-impaired and impaired) in a business acquisition are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. In determining the acquisition date fair value of purchased loans with evidence of credit deterioration (“purchased impaired loans”), and in subsequent accounting, the Company generally aggregates impaired purchased consumer and certain smaller balance impaired commercial loans into pools of loans with common risk characteristics, while accounting for larger-balance impaired commercial loans individually. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level-yield method. Management estimates the cash flows expected to be collected at acquisition and at subsequent measurement dates using internal risk models, which incorporate the estimate of key assumptions, such as default rates, loss severity, and prepayment speeds. Subsequent to the acquisition date, decreases in cash flows over those expected at the acquisition date are recognized by recording an allowance for loan and lease losses. Subsequent increases in cash flow over those expected at the acquisition date are recognized as reductions to allowance for loan and lease losses to the extent impairment was previously recognized and thereafter as interest income prospectively. For purchased loans not deemed impaired at the acquisition date, the difference between the fair value and the unpaid principal balance of the loan at acquisition date is amortized or accreted to interest income using the effective interest method over the remaining period to contractual maturity. Credit Risk Management 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 categorizes its loan portfolio into six classes, which is the level at which it develops and documents a systematic methodology to determine the allowance for loan and lease losses. The Company’s six loan portfolio classes are commercial real estate, agriculture, commercial non-real estate, residential real estate, consumer and other lending. The commercial real estate lending class includes loans made to small and middle market businesses, including multi-family properties. Loans in this class are generally secured by commercial real estate with cash flows generally being the primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the commercial real estate lending class. Key risk characteristics relevant to the commercial real estate lending class include the industry and geography of the borrower’s business, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The agriculture lending class includes loans made to agricultural individuals and businesses. Loans in this class are generally secured by operating assets and agriculture real estate and guaranteed by owners; cashflows are most often our primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the agriculture lending class. Key risk characteristics relevant to the agriculture lending class include the geography of the borrower’s operations, commodity prices and weather patterns, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The commercial non-real estate lending class includes loans made to small and middle market businesses, and loans made to public sector customers. Loans in this class are generally secured by business assets and guaranteed by owners; cashflows are most often our primary source of repayment. Historical loss history and updated loan-to-value information on collateral-dependent loans are the primary factors in determining the allowance for loan and lease losses for the commercial non-real estate lending class. Key risk characteristics relevant to the commercial non-real estate lending class include the industry and geography of the borrower’s business, purpose of the loan, repayment sources, borrower’s debt capacity and financial performance, loan covenants, and nature of pledged collateral. We consider these risk characteristics in assigning risk ratings and estimating environmental factors considered in determining the allowance for loan and lease losses. The residential real estate lending class includes loans made to consumer customers including residential mortgages, residential construction loans and home equity loans and lines. These loans are typically fixed rate loans secured by residential real estate. Home equity lines are revolving accounts giving the borrower the ability to draw and repay balances repeatedly, up to a maximum commitment, and are secured by residential real estate. Home equity lines typically have variable rate terms which are benchmarked to a prime rate. Historical loss history is the primary factor in determining the allowance for loan and lease losses for the residential real estate lending class. Key risk characteristics relevant to residential real estate lending class loans primarily relate to the borrower’s capacity and willingness to repay and include unemployment rates and other economic factors, and customer payment history. These risk characteristics, among others, are reflected in the environmental factors considered in determining the allowance for loan and lease losses. The consumer lending class includes loans made to consumer customers including loans secured by automobiles and other installment loans, and the other lending class includes credit card loans and unsecured revolving credit lines. Historical loss history is the primary factor in determining the allowance for loan and lease losses for the consumer and other lending classes. Key risk characteristics relevant to loans in the consumer and other lending classes primarily relate to the borrower’s capacity and willingness to repay and include unemployment rates and other economic factors, and customer payment and overall credit history. These risk characteristics, among others, are reflected in the environmental factors considered in determining the allowance for loan and lease losses. The other lending class includes all other loan relationships that do not fit within the categories above, primarily consumer and commercial credit cards, customer deposit account overdrafts, and lease receivables. The Company assigns all non-consumer loans a credit quality risk rating. These ratings are Pass, Watch, Substandard, Doubtful, and Loss. Loans with a Pass and Watch rating represent those loans not classified on the Company’s rating scale for problem credits, with loans with a Watch rating being monitored and updated at least quarterly by management. Substandard loans are those where a well-defined weakness has been identified that may put full collection of contractual debt at risk. Doubtful loans are those where a well-defined weakness has been identified and a loss of contractual debt is probable. Substandard and doubtful loans are monitored and updated monthly. All loan risk ratings are updated and monitored on a continuous basis. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of consumer loans. Troubled Debt Restructurings (“TDRs”) 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. Our TDRs include performing and nonperforming TDRs, which consist of loans that continue to accrue interest at the loan's original interest rate as we expect 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 we do 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 we move the loan to a performing status (performing TDR). If we do 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 our analysis of the allowance for loan and lease 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. Allowance for Loan and Lease Losses (“ALLL”) and Unfunded Commitments The Company maintains an allowance for loan and lease losses at a level management believes is appropriate to reserve for credit losses inherent in our loan portfolio. The allowance for loan and lease losses is determined based on an ongoing evaluation, driven primarily by monitoring changes in loan risk grades, delinquencies, and other credit risk indicators, which is inherently subjective. The Company considers the uncertainty related to certain industry sectors and the extent of credit exposure to specific borrowers within the portfolio. In addition, consideration is given to concentration risks associated with the various loan portfolios and current economic conditions that might impact the portfolio. The Company also considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry, or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes in unemployment rates, gross domestic product, and consumer bankruptcy filings. All of these estimates are susceptible to significant change. Changes to the allowance for loan and lease losses are made by charges to the provision for loan and lease losses, which is reflected in the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans that are 90 days or more past due are put on nonaccrual status unless a repayment is eminent. Loans deemed to be uncollectible are charged off against the allowance for loan and lease losses. Recoveries of amounts previously charged-off are credited to the allowance for loan and lease losses. The allowance for loan and lease losses consist of reserves for probable losses that have been identified related to specific borrowing relationships that are individually evaluated for impairment (“specific reserve”), as well as probable losses inherent in our loan portfolio that are not specifically identified (“collective reserve”). The specific reserve relates to impaired loans. A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due (interest as well as principal) according to the contractual terms of the loan agreement. Specific reserves are determined on a loan-by-loan basis based on management’s best estimate of the Company's exposure, given the current payment status of the loan, the present value of expected payments, and the value of any underlying collateral. Impaired loans also include loans modified in troubled debt restructurings. Generally, the impairment related to troubled debt restructurings is measured based on the fair value of the collateral, less cost to sell, or the present value of expected payments relative to the unpaid principal balance. If the impaired loan is identified as collateral dependent, then the fair value of the collateral method of measuring the amount of the impairment is utilized. This method requires obtaining an independent appraisal of the collateral and reducing the appraised value by applying a discount factor to the appraised value, if necessary, and including costs to sell. Management’s estimate for collective reserves reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates primarily are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes. The Company maintains an ALLL for acquired impaired loans accounted for under ASC 310-30, resulting from decreases in expected cash flows arising from the periodic revaluation of these loans. Any decrease in expected cash flows in the individual loan pool is generally recognized in the current provision for loan and lease losses. Any increase in expected cash flows is generally not recognized immediately but is instead reflected as an adjustment to the related loan or pool's yield on a prospective basis once any previously recorded provision for loan and lease loss has been recognized. For acquired nonimpaired loans accounted for under ASC 310-20, the Company utilizes methods to estimate the required allowance for loan and lease losses similar to originated loans; the required reserve is compared to the net carrying value of each acquired nonimpaired loan (by class) to determine if a provision is required. 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 other liabilities on the consolidated balance sheets with changes in fair value recorded in other interest income. All other unfunded loan commitments are generally related to providing credit facilities to customers and are not considered derivatives. For purchased loans, the fair value of the unfunded credit commitments is considered in determination of the fair value of the loans recorded at the date of acquisition. Reserves for credit exposure on all other unfunded credit commitments are recorded in other liabilities on the consolidated balance sheets. We maintain a reserve for unfunded commitments at a level we believe to be sufficient to absorb estimated probable losses related to unfunded credit facilities. |
FDIC Indemnification Asset and Clawback Liability | In conjunction with a Federal Deposit Insurance Corporation (“FDIC”) assisted transaction of TierOne Bank in 2010, the Company entered into two loss share agreements with the FDIC, one covering certain single family residential mortgage loans with the claim period ending June 2020 and one covering commercial loans and other assets, in which the claim period ended in June 2015. The agreements cover a portion of realized losses on loans, foreclosed real estate and certain other assets. The Company has recorded assets on the consolidated balance sheets (i.e. indemnification assets) representing estimated future amounts recoverable from the FDIC. Fair values of loans covered by the loss sharing agreements 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 agreements. 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 are measured separately from the related loans and foreclosed real estate and recorded as an FDIC indemnification asset on the consolidated balance sheets because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses reduce the carrying amount of the loss share assets. Reductions to expected losses on covered assets, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, also reduce the carrying amount of the loss share assets. The rate of accretion of the indemnification asset discount included in interest income slows to mirror the accelerated accretion of the loan discount. Additional expected losses on covered assets, to the extent such expected losses result in the recognition of an allowance for loan and lease losses, increase 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 is calculated based on the reimbursement rates from the FDIC and is included in other noninterest income. The corresponding loan accretion or amortization is recorded as a component of interest income on the consolidated statements of income. Although these assets are contractual receivables from the FDIC, there are no contractual interest rates. As part of the loss sharing agreements, the Company also assumed a liability (“FDIC Clawback Liability”) to be paid within 45 days subsequent to the maturity or termination of the loss sharing agreements that is contingent upon actual losses incurred over the life of the agreements relative to expected losses considered in the consideration paid at acquisition date and the amount of losses reimbursed to the Company under the loss sharing agreements. The liability was recorded at fair value as of the acquisition date. The fair value was based on a discounted cash flow calculation that considered the formula defined in the loss sharing agreements and projected losses. The difference between the fair value at acquisition date and the projected losses is amortized through other noninterest expense. As projected losses and reimbursements are updated, as described above, the FDIC Clawback Liability is adjusted and a gain or loss is recorded in other noninterest expense. |
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. |
Goodwill | Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. In accordance with ASC Topic 350 Goodwill and Other Intangible Assets , goodwill is evaluated annually for impairment, as well as on an interim basis if events or changes indicate that the asset might be impaired. An impairment loss would be recognized for any excess of carrying value over fair value of the goodwill or the indefinite-lived intangible asset. Subsequent increases in goodwill would not be recognized in the consolidated financial statements. In the fourth quarter of fiscal year 2017, the Company elected to early adopt ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removed Step 2 of the goodwill impairment test. The adoption of this standard had no impact to the consolidated financial statements. The Company historically performed its impairment evaluation as of June 30 of each fiscal year. During the third quarter of fiscal year 2017, the Company voluntarily changed its annual impairment assessment date from June 30 to July 1. The change in evaluation date better aligned with the Company's budget and strategic planning cycle. This voluntary change in accounting principle was not made to delay, accelerate or avoid an impairment charge. The change was not applied retrospectively as it was impracticable to do so because retrospective application would have required the application of significant estimates and assumptions with the use of hindsight. Accordingly, the change was applied prospectively. The Company performed its goodwill impairment assessment on the basis of one reporting unit. A quantitative analysis using three methods; market multiple, comparable transaction, and discounted cash flow were applied in the assessment. The average of the values calculated under the three methods determined a range of equity value. For the discounted cash flow method, the income growth was projected for the reporting unit over three years and a terminal value was computed. Assumptions used in the discounted cash flow method were based on growth rates, volatility, discount rate and the equity risk premium inherent in the Company's current stock prices. These assumptions are considered significant unobservable inputs and represent the Company's best estimate of assumptions that market participants would use to determine fair value of the reporting unit. |
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 purchase acquisitions. Brand intangible represents the value associated with the Bank charter . Customer relationships intangible represents the identifiable intangible value assigned to customer relationships arising from a purchase acquisition. Other intangibles represent contractual franchise arrangements under which the franchiser grants the franchisee the right to perform certain functions within a designated geographical area. The methods and lives used to amortize intangible assets are as follows: Intangible Method Years Core deposit Straight-line or effective yield 5 - 10 Brand intangible Straight-line 15 Customer relationships Straight-line 8.5 Other intangibles Straight-line 1.25 - 9.33 Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. |
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 evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is determined by stratifying rights into groupings based on characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to noninterest income. If the Company determines the impairment to be permanent, the valuation is written off against the loan servicing rights, which results in a new amortized balance. Changes in the valuation allowance are reported in mortgage banking income, net in the consolidated statements of income. The fair value of loan servicing rights is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Estimating future cash flows on the underlying mortgages is a difficult analysis and requires judgment based on the best information available. Based on the Company's analysis of loan servicing rights, a valuation allowance of $0.07 million , $0.01 million and $0.00 million was recorded during the years ended September 30, 2017 , 2016 and 2015 , respectively. Servicing fee income, which is reported in noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding balance or a fixed amount per loan and are recorded as income as earned. The amortization of loan servicing rights is netted against mortgage banking income, net in the consolidated statements of income. |
Bank Owned Life Insurance (BOLI) | 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. |
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 assets and 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. 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 assets and liabilities, depending on the rights or obligations under the contract, in fair value of derivatives on the consolidated balance sheet, with changes in fair value reported in net realized and unrealized gain (loss) on derivatives. In 2017 the Company began a new program of selling interest swaps directly to customers. These interest rate swaps sales are used to enable customers to achieve a long-term fixed rate by selling the customer a long-term variable rate loan indexed to LIBOR plus a credit spread whereby the bank enters into an interest rate swap with our customer where the customer pays a fixed rate of interest set at the time of origination on the interest rate swap and then the customer receives a floating rate equal to the rate paid on the loan, thus resulting in a fixed rate of interest over the life of the interest rate swap. The bank minimizes the market and liquidity risks of the swaps entered into with the customer by entering into an offsetting position with a swap dealer. 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 with changes in fair value recorded in noninterest 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. In the third quarter of fiscal year 2017, the Company elected to early adopt ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employees Share Based Payments Accounting . The Company had no previously unrecognized excess tax benefits, therefore, there was no impact to the consolidated financial statements as it related to the elimination of the requirement that excess tax benefits be realized before recognition. The Company's consolidated financial statements are presented as if ASU 2016-09 was adopted as of the beginning of the fiscal year, which resulted in a reclassification from additional paid-in capital to provision for income taxes of $0.3 million , $0.0 million and $0.0 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. This change had an immaterial impact on diluted earnings per common share for the years ended September 30, 2017 , 2016 and 2015 . Prior period financial statement presentation of equity and tax expense as of and for the three month and fiscal year to date periods ended December 31, 2016 and March 31, 2017 will be recast when presented in future filings. ASU 2016-09 also requires that all income tax related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has not previously reported any excess tax benefits from stock-based compensation in the financing activities section of the consolidated statement of cash flows. ASU 2016-09 also requires an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows (previous guidance did not specify how these cash flows should be classified). The Company has elected to apply these changes in cash flow classification on a prospective basis. As part of the adoption of ASU 2016-09, the Company made an accounting policy election to account for forfeitures on an actual basis and discontinue the use of an estimated forfeiture approach. |
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. |
Defined Benefit Plan | The Company assumed plan sponsorship of the HF Financial Corp. Pension Plan as part of the HF Financial acquisition. Defined benefit pension obligation and related costs are calculated using actuarial concepts and measurements. Three critical assumptions, the discount rate, the expected long-term rate of return on plan assets, and mortality rates are important elements of expense and/or benefit obligation measurements. Other assumptions involve employee demographic factors such as retirement patterns and turnover. The Company evaluates all assumptions annually. For the pension valuation performed as of September 30, 2017 mortality assumptions were based on the RP-2014 mortality tables and the MP 2016 projection scales. The discount rate enables the Company to state expected future benefit payments as a present value on the measurement date. The Company determined the discount rate for the pension valuation as of September 30, 2017 by utilizing the standard duration index from the Citi Pension Discount Curve and Liability Index. A lower discount rate increases the present value of benefit obligations and increases pension expense. To determine expected long-term rate of return on defined benefit pension plan assets, the Company considers the current asset allocation of the defined benefit pension plan, as well as historical and expected returns on each asset class. A lower expected rate of return on defined pension plan assets will increase pension expense. The Company recognizes the over- or under-funded status of a plan as an other asset or other liability in the consolidated balance sheets as measured by the difference between the fair value of the plan assets and the projected benefit obligation. When recorded, unrecognized prior service costs and actuarial gains and losses are recognized as a component of accumulated other comprehensive income (loss). |
Revenue Recognition | The Company recognizes revenue as it is earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. Certain specific policies related to service charges and other fees include the following: Deposit Service Charges Service charges on deposit accounts are primarily fees related to customer overdraft events and not sufficient funds fees, net of any refunded fees, and are recognized as transactions occur and services are provided. Service charges on deposit accounts also relate to monthly fees based on minimum balances, and are earned as transactions occur and services are provided. Interchange Fees Interchange fees include interchange income from consumer debit card transactions processed through card association networks. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. Interchange fees are set by the card association networks and are based on cardholder purchase volumes. Wealth Management Fees Wealth management fees include commission income from financial planning, investment management and insurance operations. |
Comprehensive Income | Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income (loss) consists of unrealized appreciation (depreciation) on available for sale securities and unrealized holding gains (losses) on defined benefit plan obligations. |
New Accounting Pronouncements | In August 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 is to be applied to all existing hedging relationships on the date of adoption and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period, with the effect of adoption reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of ASU 2017-12 on our consolidated financial statements. In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. ASU 2017-09 is to be applied prospectively to an award modified on or after the adoption date and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company does not believe ASU 2017-09 will have a material impact on our consolidated financial statements. In March 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. There is no accounting change for debt securities held at a discount. ASU 2017-08 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2017-08 on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an employer to report the service cost component in the same line item as other compensation costs arising from services rendered by employees in the income statement with the other components of the net benefit cost presented below the income from operations line in the income statement. ASU 2017-07 will be effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted as of the beginning of the annual period. The Company is currently evaluating the potential impact of ASU 2017-07 on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. Under this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. We elected to adopt the provisions of ASU 2017-04 in the fourth quarter of fiscal year 2017 in advance of the required application date. See Note 1 - Nature of Operations and Summary of Significant Policies - Goodwill for further discussion. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which contains amendments that clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. ASU 2017-01 amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. ASU 2017-01 provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments in ASU 2017-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and should be applied prospectively. No disclosures are required at transition. The Company has determined that ASU 2017-01 is not expected to have a material impact on the Company’s consolidated financial statements; however, the Company will continue to closely monitor developments and additional guidance. In October 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control , which alters how a decision maker needs to consider indirect interests in a variable interest entity held through an entity under common control and simplifies that analysis to require consideration of only an entity’s proportionate indirect interest in a VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, Consolidations (Topic 810): Amendments to the Consolidation Analysis , which was not effective for the Company in the current fiscal year. ASU 2016-17 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not believe ASU 2016-17 will have an impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Equity Transfers of Assets Other Than Inventory, which addresses improvement in accounting for income tax consequences of intra-equity transfers of assets other than inventory. This update requires that an entity recognize the income tax consequences of the intra-equity transfer of an asset other than inventory when the transfer occurs. The update eliminates the exception for an intra-equity transfer for assets other than inventory. ASU 2016-16 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The amendment requires the use of a modified retrospective transaction approach through a cumulative effect adjustment directly to retained earnings as of the beginning of adoption. The Company does not believe ASU 2016-16 will have an impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), which addresses eight specific cash flow issues with the objective of reducing the existing diversity in presentations and classification in the statement of cash flows. The eight specific cash flow issues addressed include: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The amendment requires the use of the retrospective transaction approach for adoption. The Company does not believe ASU 2016-15 will have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which addresses timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires institutions to measure all expected credit losses related to financial assets measured at amortized costs with an expected loss model based on historical experience, current conditions and reasonable and supportable forecasts relevant to affect the collectability of the financial assets, which is referred to as the current expected credit loss (CECL) model. The ASU 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. ASU 2016-13 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The amendment requires the use of the modified retrospective approach for adoption. The Company has formed a project team to work on the implementation of ASU 2016-13 and is currently evaluating the potential impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Based Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. ASU 2016-09 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Earlier application is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We elected to adopt the provisions of ASU 2016-09 in the third quarter of fiscal year 2017 in advance of the required application date. See Note 1 - Nature of Operations and Summary of Significant Accounting Policies - Stock Based Compensation for further discussion. In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842) , which requires that lessees recognize the assets and liabilities arising from leases on the balance sheet and disclosing key information about leasing arrangements. Lessees will be required to recognize an obligation for future lease payments measured on a discounted basis and a related right-of-use asset. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, "Revenue from Contracts with Customers." ASU 2016-02 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the potential impact of ASU 2016-02 on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments, in general, to be measured at fair value with changes in fair value recognized in earnings. It also eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires entities to use the exit price notion when measuring fair value, requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the measurement category and form on the balance sheet or accompanying notes, clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets, and simplifies the impairment assessment of equity investments without readily determinable fair values. ASU 2016-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not believe ASU 2016-01 will have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which implements a more robust framework that clarifies the principles for recognizing revenue and gives greater consistency and comparability in revenue recognition practices. In the new framework, an entity recognizes revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. The new model requires the identification of performance obligations included in the contract with customers, a determination of the transaction price and an allocation of the price to those performance obligations. The entity recognizes revenue when performance obligations are satisfied. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU No. 2016-08, which intends to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, which clarifies guidance pertaining to the identification of performance obligations and the licensing implementation. In May 2016, the FASB issued ASU Nos. 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related to the adoption of ASU No. 2014-09. The standard permits the use of either the retrospective or cumulative effect transition method. The standard, along with subsequent guidance from FASB, lists several items that are specifically out of scope for ASU 2014-09, including but not limited to: core interest income, derivative instruments, investments, and loan origination fees. To address the new standard, the Company formed a working group and has completed the initial scoping phase to determine which revenue streams may be subject to accounting or disclosure changes upon adoption in October of 2018. Based on this preliminary analysis, we do not anticipate significant changes as a result of implementing the standard, but will conclude on the quantitative and qualitative impacts once we have completed our review of key contracts for any in-scope items over the coming months. |
Nature of Operations and Summ37
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
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 5 - 10 Brand intangible Straight-line 15 Customer relationships Straight-line 8.5 Other intangibles Straight-line 1.25 - 9.33 A summary of intangible assets subject to amortization as of September 30, 2017 and 2016 is as follows: Core Deposit Brand Customer Other Total As of September 30, 2017 (dollars in thousands) Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (61,258 ) (5,264 ) (16,089 ) (124 ) (82,735 ) Net intangible assets $ 5,760 $ 3,200 $ — $ 414 $ 9,374 As of September 30, 2016 Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (59,842 ) (4,700 ) (15,800 ) (35 ) (80,377 ) Net intangible assets $ 7,176 $ 3,764 $ 289 $ 503 $ 11,732 |
Acquisition Activity (Tables)
Acquisition Activity (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of acquisition activity | The following summarizes consideration paid and an allocation of purchase price to net assets acquired. Number of Shares Amount (dollars in thousands) Equity consideration: Common stock issued 3,448,119 $ 107,478 Non-equity consideration: Cash 34,487 Total consideration paid 141,965 Fair value of net assets acquired including identifiable intangible assets 100,749 Goodwill $ 41,216 The following table presents the acquired loan data for the HF Financial acquisition. Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected (Unaudited, dollars in thousands) Acquired receivables subject to ASC 310-30 $ 51,532 $ 83,710 $ 28,516 Acquired receivables not subject to ASC 310-30 812,209 998,255 9,572 |
Schedule of assets acquired and liabilities assumed | The following table summarizes the assets acquired and liabilities assumed which were recorded on the consolidated balance sheet as of the date of merger of HF Financial: Fair Value (dollars in thousands) Identifiable assets acquired: Cash and cash equivalents $ 18,818 Investment securities 165,052 Loans 863,741 Premises and equipment 19,220 Accrued interest receivable 4,117 Other repossessed property 4 Intangible assets 7,877 Loan servicing rights 6,573 Other assets 36,076 Total identifiable assets acquired $ 1,121,478 Liabilities assumed: Deposits $ 863,121 FHLB advances and other borrowings 115,881 Subordinated debentures 21,110 Other liabilities 20,617 Total liabilities assumed 1,020,729 Fair value of net identifiable assets acquired 100,749 Net purchase price 141,965 Goodwill $ 41,216 |
Schedule of pro forma information | The following unaudited pro forma combined results of operations of the Company and HF Financial presents results as if the acquisition had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that the Company would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results. In particular, no adjustments have been made to eliminate the amount of HF Financial's provision for loan and lease losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. For the Year Ended September 30, 2017 2016 2015 (Unaudited, dollars in thousands, except per share data) Net interest income $ 396,347 $ 386,454 $ 370,778 Net income 144,786 126,286 114,731 Basic earnings per share 2.46 2.23 2.00 Fully diluted earnings per share 2.45 2.23 2.00 |
Schedule of total contractually required principal and interest cash payments, management's estimate of expected total cash payments and fair value of the loans as of acquisition date for purchased credit impaired loans | The table below summarizes the total contractually required principal and interest cash payments, management's estimate of expected total cash payments and fair value of the loans as of acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments. Amount (Unaudited, dollars in thousands) Contractually required principal and interest $ 83,710 Non-accretable difference (28,516 ) Cash flows expected to be collected 55,194 Accretable yield (3,662 ) Total purchased credit impaired loans acquired $ 51,532 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost and approximate fair value of investments in securities | The amortized cost and approximate fair value of investments in securities, all of which are classified as available for sale according to management’s intent, are summarized as follows: Amortized Cost Gross Gross Estimated Fair Value (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 228,039 $ 579 $ (15 ) $ 228,603 Mortgage-backed securities: Government National Mortgage Association 511,457 228 (6,635 ) 505,050 Federal National Mortgage Association 339,394 97 (2,534 ) 336,957 Small Business Assistance Program 224,005 726 (1,001 ) 223,730 States and political subdivision securities 73,041 187 (642 ) 72,586 Corporate debt securities — — — — Other 1,006 28 — 1,034 Total $ 1,376,942 $ 1,845 $ (10,827 ) $ 1,367,960 Amortized Cost Gross Gross Estimated Fair Value (dollars in thousands) As of September 30, 2016 U.S. Treasury securities $ 227,007 $ 3,973 $ — $ 230,980 Mortgage-backed securities: Government National Mortgage Association 664,529 3,172 (1,922 ) 665,779 Federal National Mortgage Association 210,933 1,324 — 212,257 Small Business Assistance Program 142,921 2,362 — 145,283 States and political subdivision securities 55,525 123 (164 ) 55,484 Corporate debt securities 4,998 24 — 5,022 Other 1,006 49 — 1,055 Total $ 1,306,919 $ 11,027 $ (2,086 ) $ 1,315,860 |
Summary of amortized cost and approximate fair value of debt securities available for sale | The amortized cost and approximate fair value of debt securities available for sale as of September 30, 2017 and 2016 , 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, 2017 September 30, 2016 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (dollars in thousands) Due in one year or less $ 91,535 $ 91,597 $ 3,706 $ 3,709 Due after one year through five years 193,117 193,373 262,333 266,312 Due after five years through ten years 16,306 16,097 21,369 21,343 Due after ten years 122 122 122 122 301,080 301,189 287,530 291,486 Mortgage-backed securities 1,074,856 1,065,737 1,018,383 1,023,319 Securities without contractual maturities 1,006 1,034 1,006 1,055 Total $ 1,376,942 $ 1,367,960 $ 1,306,919 $ 1,315,860 |
Summary of unrealized gains and losses on investments | The following table presents the Company’s gross unrealized losses and approximate fair value in investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 10,003 $ (15 ) $ — $ — $ 10,003 $ (15 ) Mortgage-backed securities 635,969 (5,425 ) 241,368 (4,746 ) 877,337 (10,171 ) States and political subdivision securities 21,705 (197 ) 25,773 (444 ) 47,478 (641 ) Total $ 667,677 $ (5,637 ) $ 267,141 $ (5,190 ) $ 934,818 $ (10,827 ) Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) As of September 30, 2016 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Mortgage-backed securities 17,528 (6 ) 284,995 (1,916 ) 302,523 (1,922 ) States and political subdivision securities 27,933 (164 ) — — 27,933 (164 ) Total $ 45,461 $ (170 ) $ 284,995 $ (1,916 ) $ 330,456 $ (2,086 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Summary of net loans receivable | The composition of net loans as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Commercial real estate $ 4,124,805 $ 3,754,107 Agriculture 2,122,138 2,168,937 Commercial non-real estate 1,718,914 1,673,166 Residential real estate 932,892 1,020,958 Consumer 66,559 76,273 Other 43,207 42,477 Ending balance 9,008,515 8,735,918 Less: Unamortized discount on acquired loans (29,121 ) (39,947 ) Unearned net deferred fees and costs and loans in process (10,841 ) (13,327 ) Total $ 8,968,553 $ 8,682,644 |
Summary of the Company's nonaccrual loans | The following table presents the Company’s nonaccrual loans at September 30, 2017 and 2016 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of September 30, 2017 and 2016 were $1.9 million and $2.0 million , respectively. September 30, 2017 2016 Nonaccrual loans (dollars in thousands) Commercial real estate $ 14,693 $ 13,870 Agriculture 99,325 66,301 Commercial non-real estate 13,674 27,280 Residential real estate 4,421 5,962 Consumer 112 223 Total $ 132,225 $ 113,636 |
Composition of loan portfolio by internal risk rating | The composition of the loan portfolio by internally assigned grade is as follows as of September 30, 2017 and 2016 . This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 : As of September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 3,519,689 $ 1,577,403 $ 1,369,803 $ 853,266 $ 65,673 $ 43,207 $ 7,429,041 Watchlist 80,195 157,407 31,878 4,158 187 — 273,825 Substandard 37,627 130,953 21,438 7,368 306 — 197,692 Doubtful 521 119 3,841 242 — — 4,723 Loss — — — — — — — Ending balance 3,638,032 1,865,882 1,426,960 865,034 66,166 43,207 7,905,281 Loans covered by FDIC loss sharing agreements — — — 57,537 — — 57,537 Total $ 3,638,032 $ 1,865,882 $ 1,426,960 $ 922,571 $ 66,166 $ 43,207 $ 7,962,818 As of September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 3,276,048 $ 1,514,344 $ 1,093,913 $ 919,224 $ 75,065 $ 42,477 $ 6,921,071 Watchlist 81,148 204,326 37,283 4,741 110 — 327,608 Substandard 57,415 130,569 42,319 10,885 417 — 241,605 Doubtful 147 630 395 130 — — 1,302 Loss — — — — — — — Ending balance 3,414,758 1,849,869 1,173,910 934,980 75,592 42,477 7,491,586 Loans covered by FDIC loss sharing agreements — — — 73,272 — — 73,272 Total $ 3,414,758 $ 1,849,869 $ 1,173,910 $ 1,008,252 $ 75,592 $ 42,477 $ 7,564,858 |
Summary of past due financing receivables | The following table presents the Company’s past due loans at September 30, 2017 and 2016 . This table is presented net of unamortized discount on acquired loans and excludes loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 . 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Current Total As of September 30, 2017 (dollars in thousands) Commercial real estate $ 876 $ 22,536 $ 6,504 $ 29,916 $ 3,608,116 $ 3,638,032 Agriculture 1,453 3,181 20,844 25,478 1,840,404 1,865,882 Commercial non-real estate 2,485 115 8,580 11,180 1,415,780 1,426,960 Residential real estate 1,428 76 951 2,455 862,579 865,034 Consumer 71 24 18 113 66,053 66,166 Other — — — — 43,207 43,207 Ending balance 6,313 25,932 36,897 69,142 7,836,139 7,905,281 Loans covered by FDIC loss sharing agreements 998 54 738 1,790 55,747 57,537 Total $ 7,311 $ 25,986 $ 37,635 $ 70,932 $ 7,891,886 $ 7,962,818 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Current Total As of September 30, 2016 (dollars in thousands) Commercial real estate $ 1,765 $ 1,959 $ 3,745 $ 7,469 $ 3,407,289 $ 3,414,758 Agriculture (26 ) 709 11,549 12,232 1,837,637 1,849,869 Commercial non-real estate 1,588 5,515 9,594 16,697 1,157,213 1,173,910 Residential real estate 828 548 2,063 3,439 931,541 934,980 Consumer 209 20 28 257 75,335 75,592 Other — — — — 42,477 42,477 Ending balance 4,364 8,751 26,979 40,094 7,451,492 7,491,586 Loans covered by FDIC loss sharing agreements 1,404 1,173 367 2,944 70,328 73,272 Total $ 5,768 $ 9,924 $ 27,346 $ 43,038 $ 7,521,820 $ 7,564,858 |
Summary of impaired financing receivables | The following table presents the Company’s impaired loans. This table excludes purchased credit impaired loans and loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 : As of September 30, 2017 As of September 30, 2016 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 20,819 $ 24,893 $ 3,621 $ 29,965 $ 32,349 $ 3,846 Agriculture 79,219 88,268 11,468 71,501 80,842 12,278 Commercial non-real estate 17,950 28,755 4,779 34,526 35,283 6,475 Residential real estate 5,177 5,874 2,581 6,244 6,886 3,000 Consumer 280 287 86 383 393 87 Total impaired loans with an allowance recorded 123,445 148,077 22,535 142,619 155,753 25,686 With no allowance recorded: Commercial real estate 16,652 69,677 — 24,040 24,660 — Agriculture 51,256 64,177 — 30,339 31,907 — Commercial non-real estate 13,983 38,924 — 15,299 16,469 — Residential real estate 2,574 9,613 — 4,120 5,807 — Consumer 13 950 — 12 12 — Total impaired loans with no allowance recorded 84,478 183,341 — 73,810 78,855 — Total impaired loans $ 207,923 $ 331,418 $ 22,535 $ 216,429 $ 234,608 $ 25,686 The average recorded investment on impaired loans and interest income recognized on impaired loans for the years ended September 30, 2017 , 2016 and 2015 , respectively, are as follows: For the year ended September 30, 2017 September 30, 2016 September 30, 2015 Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status (dollars in thousands) Commercial real estate $ 42,347 $ 2,163 $ 70,266 $ 3,876 $ 69,918 $ 3,936 Agriculture 131,026 5,503 100,052 6,502 42,599 1,953 Commercial non-real estate 41,489 1,485 45,592 1,971 49,561 3,092 Residential real estate 8,900 453 11,773 576 12,523 588 Consumer 369 47 309 55 241 35 Total $ 224,131 $ 9,651 $ 227,992 $ 12,980 $ 174,842 $ 9,604 The following table provides purchased impaired loans at September 30, 2017 and September 30, 2016 : September 30, 2017 September 30, 2016 Outstanding Balance 1 Recorded Investment 2 Carrying Value 3 Outstanding 1 Recorded 2 Carrying 3 (dollars in thousands) Commercial real estate $ 110,797 $ 30,099 $ 29,417 $ 129,615 $ 44,448 $ 43,676 Agriculture 10,463 7,174 7,059 19,174 15,254 15,254 Commercial non-real estate 9,825 1,920 1,920 11,588 3,196 3,196 Residential real estate 61,981 52,736 52,540 76,696 65,737 64,830 Consumer 798 666 666 1,033 896 896 Total lending $ 193,864 $ 92,595 $ 91,602 $ 238,106 $ 129,531 $ 127,852 1 Represents the legal balance of ASC 310-30 loans. 2 Represents the book balance of ASC 310-30 loans. 3 Represents the book balance of ASC 310-30 loans net of the related allowance for loan and lease losses. |
Summary of all non-accruing loans restructured in Troubled Debt Restructurings on financing receivables | The following table presents the recorded value of the Company’s TDR balances as of September 30, 2017 and 2016 : September 30, 2017 September 30, 2016 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 1,121 $ 5,351 $ 18,250 $ 2,356 Agriculture 22,678 59,633 19,823 28,688 Commercial non-real estate 8,369 5,641 8,102 4,789 Residential real estate 311 688 370 937 Consumer 11 21 23 8 Total $ 32,490 $ 71,334 $ 46,568 $ 36,778 The following table presents a summary of all accruing loans restructured in TDRs during the years ended September 30, 2017 , 2016 and 2015 , respectively: September 30, 2017 September 30, 2016 September 30, 2015 Recorded Investment Recorded Investment Recorded Investment Number Pre- Post- Number Pre- Post- Number Pre- Post- (dollars in thousands) Commercial real estate Rate modification — $ — $ — — $ — $ — — $ — $ — Term extension 2 3,726 3,726 2 1,897 1,897 — — — Payment modification — — — — — — 6 22,232 22,232 Bankruptcy — — — — — — 1 477 477 Other — — — 3 6,714 6,714 — — — Total commercial real estate 2 3,726 3,726 5 8,611 8,611 7 22,709 22,709 Agriculture Rate modification — — — — — — — — — Term extension 9 18,072 18,072 16 27,134 27,134 2 1,410 1,410 Payment modification 1 102 102 4 989 989 7 18,551 18,551 Bankruptcy — — — — — — — — — Other 3 728 728 — — — — — — Total agriculture 13 18,902 18,902 20 28,123 28,123 9 19,961 19,961 Commercial non-real estate Rate modification — — — 1 49 49 — — — Term extension 2 613 613 5 120 120 2 2,296 2,296 Payment modification 6 1,281 1,281 2 948 948 4 1,709 1,709 Bankruptcy — — — — — — — — — Other 1 150 150 4 8,500 8,500 — — — Total commercial non-real estate 9 2,044 2,044 12 9,617 9,617 6 4,005 4,005 Residential real estate Rate modification — — — — — — 1 13 13 Term extension — — — 1 42 42 2 53 53 Payment modification 1 9 9 — — — — — — Bankruptcy — — — — — — 1 19 19 Other — — — — — — — — — Total residential real estate 1 9 9 1 42 42 4 85 85 Consumer Rate modification — — — — — — — — — Term extension — — — — — — — — — Payment modification — — — — — — 1 17 17 Bankruptcy 1 8 8 — — — 1 6 6 Other — — — — — — — — — Total consumer 1 8 8 — — — 2 23 23 Total accruing 26 $ 24,689 $ 24,689 38 $ 46,393 $ 46,393 28 $ 46,783 $ 46,783 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to charge-offs at time of modification — $ — $ — — $ — $ — — $ — $ — The following table presents a summary of all non-accruing loans restructured in TDRs during the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 September 30, 2016 September 30, 2015 Recorded Investment Recorded Investment Recorded Investment Number Pre- Post- Number Pre- Post- Number Pre- Post- (dollars in thousands) Commercial real estate Rate modification — $ — $ — — $ — $ — — $ — $ — Term extension — — — — — — 2 740 740 Payment modification — — — — — — 2 1,082 1,082 Bankruptcy — — — — — — — — — Other — — — — — — — — — Total commercial real estate — — — — — — 4 1,822 1,822 Agriculture Rate modification — — — — — — — — — Term extension 12 19,062 19,062 1 101 100 — — — Payment modification 4 565 565 4 932 887 1 229 229 Bankruptcy — — — — — — — — — Other 2 570 570 1 95 95 — — — Total agriculture 18 20,197 20,197 6 1,128 1,082 1 229 229 Commercial Non-Real Estate Rate modification — — — — — — 1 32 — Term extension 2 2,389 2,389 — — — 5 257 180 Payment modification 1 1,399 1,399 2 760 760 2 22 3 Bankruptcy — — — — — — — — — Other — — — — — — — — — Total commercial non-real estate 3 3,788 3,788 2 760 760 8 311 183 Residential real estate Rate modification — — — — — — 1 67 67 Term extension — — — — — — 3 169 169 Payment modification 1 21 21 3 254 253 1 19 19 Bankruptcy 1 112 112 — — — 1 39 39 Other — — — — — — 1 24 8 Total residential real estate 2 133 133 3 254 253 7 318 302 Consumer Rate modification — — — — — — — — — Term extension 3 21 21 — — — 2 1 — Payment modification — — — — — — — — — Bankruptcy — — — 1 8 8 — — — Other — — — — — — — — — Total consumer 3 21 21 1 8 8 2 1 — Total non-accruing 26 $ 24,139 $ 24,139 12 $ 2,150 $ 2,103 22 $ 2,681 $ 2,536 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to charge-offs at time of modification — $ — $ — 7 $ 47 $ — 5 $ 145 $ — The table below represents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the years ended September 30, 2017 , 2016 and 2015 , respectively. September 30, 2017 September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Commercial real estate — $ — — $ — — $ — Agriculture 2 8,383 2 7,307 — — Commercial non-real estate 1 — 2 275 2 — Residential real estate — — 1 — 1 8 Consumer — — 1 8 2 — Total 3 $ 8,383 6 $ 7,590 5 $ 8 |
Allowance for Loan and Lease 41
Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for credit losses on financing receivables | The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of September 30, 2017 and 2016 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $1.02 billion measured at fair value, loans held for sale of $7.5 million , and guaranteed loans of $168.3 million for September 30, 2017 and loans measured at fair value of $1.13 billion , loans held for sale of $12.9 million , and guaranteed loans of $120.0 million for September 30, 2016 . As of September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,621 $ 11,468 $ 4,779 $ 2,581 $ 86 $ — $ 22,535 Collectively evaluated for impairment 12,638 14,174 9,335 2,570 243 1,015 39,975 ASC 310-30 loans 682 115 — 196 — — 993 Total allowance $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Financing Receivables Individually evaluated for impairment $ 37,471 $ 130,475 $ 31,933 $ 7,751 $ 293 $ — $ 207,923 Collectively evaluated for impairment 3,487,232 1,702,634 1,333,888 854,330 65,207 43,207 7,486,498 ASC 310-30 loans 30,099 7,174 1,920 52,736 666 — 92,595 Loans Outstanding $ 3,554,802 $ 1,840,283 $ 1,367,741 $ 914,817 $ 66,166 $ 43,207 $ 7,787,016 As of September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,846 $ 12,278 $ 6,475 $ 3,000 $ 87 $ — $ 25,686 Collectively evaluated for impairment 13,328 12,837 6,515 3,199 351 1,047 37,277 ASC 310-30 loans 772 — — 907 — — 1,679 Total allowance $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 Financing Receivables Individually evaluated for impairment $ 54,005 $ 101,840 $ 49,825 $ 10,364 $ 395 $ — $ 216,429 Collectively evaluated for impairment 3,249,974 1,721,219 1,079,295 918,710 74,301 42,477 7,085,976 ASC 310-30 loans 44,448 15,254 3,196 65,737 896 — 129,531 Loans Outstanding $ 3,348,427 $ 1,838,313 $ 1,132,316 $ 994,811 $ 75,592 $ 42,477 $ 7,431,936 The following tables present the Company’s allowance for loan and lease losses roll forward for the years ended September 30, 2017 , 2016 and 2015 . September 30, 2017 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2016 $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 Charge-offs (2,043 ) (7,853 ) (12,576 ) (809 ) (196 ) (2,403 ) (25,880 ) Recoveries 485 415 652 507 102 1,041 3,202 Provision 643 7,965 13,048 (761 ) (15 ) 1,330 22,210 (Improvement) impairment of ASC 310-30 loans (90 ) 115 — (696 ) — — (671 ) Ending balance September 30, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 September 30, 2016 Commercial Agriculture Commercial Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2015 $ 18,014 $ 13,952 $ 15,996 $ 8,025 $ 348 $ 865 $ 57,200 Charge-offs (3,625 ) (4,294 ) (2,629 ) (1,157 ) (206 ) (2,255 ) (14,166 ) Recoveries 719 556 1,429 495 149 1,305 4,653 Provision 3,148 14,901 (1,736 ) 419 147 1,132 18,011 Improvement of ASC 310-30 loans (310 ) — (70 ) (676 ) — — (1,056 ) Ending balance September 30, 2016 $ 17,946 $ 25,115 $ 12,990 $ 7,106 $ 438 $ 1,047 $ 64,642 September 30, 2015 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Consumer Other Total (dollars in thousands) Beginning balance October 1, 2014 $ 16,884 $ 10,655 $ 10,550 $ 8,342 $ 264 $ 823 $ 47,518 Charge-offs (1,971 ) (606 ) (11,153 ) (238 ) (129 ) (1,617 ) (15,714 ) Recoveries 1,339 131 3,407 231 104 1,143 6,355 Provision 1,325 3,772 13,122 849 134 516 19,718 (Impairment) improvement of ASC 310-30 loans 437 — 70 (1,159 ) (25 ) — (677 ) Ending balance September 30, 2015 $ 18,014 $ 13,952 $ 15,996 $ 8,025 $ 348 $ 865 $ 57,200 |
Accounting for Certain Loans 42
Accounting for Certain Loans Acquired with Deteriorated Credit Quality (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Troubled debt restructurings on financing receivables | The re-assessment of purchased credit impaired loans resulted in the following changes in the accretable yield during the fiscal years ended September 30, 2017 and 2016 : September 30, 2017 2016 2015 (dollars in thousands) Balance at beginning of year $ 38,124 $ 44,489 $ 50,889 Acquisition — 3,662 — Accretion (13,847 ) (9,971 ) (13,645 ) Reclassification from (to) nonaccretable difference 19,854 (56 ) 8,363 Disposals — — (1,118 ) Balance at end of year $ 44,131 $ 38,124 $ 44,489 |
Summary of impaired financing receivables | The following table presents the Company’s impaired loans. This table excludes purchased credit impaired loans and loans measured at fair value with changes in fair value reported in earnings of $1.02 billion for 2017 and $1.13 billion for 2016 : As of September 30, 2017 As of September 30, 2016 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 20,819 $ 24,893 $ 3,621 $ 29,965 $ 32,349 $ 3,846 Agriculture 79,219 88,268 11,468 71,501 80,842 12,278 Commercial non-real estate 17,950 28,755 4,779 34,526 35,283 6,475 Residential real estate 5,177 5,874 2,581 6,244 6,886 3,000 Consumer 280 287 86 383 393 87 Total impaired loans with an allowance recorded 123,445 148,077 22,535 142,619 155,753 25,686 With no allowance recorded: Commercial real estate 16,652 69,677 — 24,040 24,660 — Agriculture 51,256 64,177 — 30,339 31,907 — Commercial non-real estate 13,983 38,924 — 15,299 16,469 — Residential real estate 2,574 9,613 — 4,120 5,807 — Consumer 13 950 — 12 12 — Total impaired loans with no allowance recorded 84,478 183,341 — 73,810 78,855 — Total impaired loans $ 207,923 $ 331,418 $ 22,535 $ 216,429 $ 234,608 $ 25,686 The average recorded investment on impaired loans and interest income recognized on impaired loans for the years ended September 30, 2017 , 2016 and 2015 , respectively, are as follows: For the year ended September 30, 2017 September 30, 2016 September 30, 2015 Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status Average Interest Income Recognized while on Impaired Status (dollars in thousands) Commercial real estate $ 42,347 $ 2,163 $ 70,266 $ 3,876 $ 69,918 $ 3,936 Agriculture 131,026 5,503 100,052 6,502 42,599 1,953 Commercial non-real estate 41,489 1,485 45,592 1,971 49,561 3,092 Residential real estate 8,900 453 11,773 576 12,523 588 Consumer 369 47 309 55 241 35 Total $ 224,131 $ 9,651 $ 227,992 $ 12,980 $ 174,842 $ 9,604 The following table provides purchased impaired loans at September 30, 2017 and September 30, 2016 : September 30, 2017 September 30, 2016 Outstanding Balance 1 Recorded Investment 2 Carrying Value 3 Outstanding 1 Recorded 2 Carrying 3 (dollars in thousands) Commercial real estate $ 110,797 $ 30,099 $ 29,417 $ 129,615 $ 44,448 $ 43,676 Agriculture 10,463 7,174 7,059 19,174 15,254 15,254 Commercial non-real estate 9,825 1,920 1,920 11,588 3,196 3,196 Residential real estate 61,981 52,736 52,540 76,696 65,737 64,830 Consumer 798 666 666 1,033 896 896 Total lending $ 193,864 $ 92,595 $ 91,602 $ 238,106 $ 129,531 $ 127,852 1 Represents the legal balance of ASC 310-30 loans. 2 Represents the book balance of ASC 310-30 loans. 3 Represents the book balance of ASC 310-30 loans net of the related allowance for loan and lease losses. |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [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 years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Balance at beginning of year $ 10,777 $ 14,722 $ 26,678 Amortization (4,748 ) (3,836 ) (7,552 ) Changes in expected reimbursements from FDIC for changes in expected credit losses (45 ) (278 ) (305 ) Changes in reimbursable expenses (986 ) (791 ) (1,972 ) Payments (reimbursements) of covered losses from the FDIC 706 960 (2,127 ) Balance at end of year $ 5,704 $ 10,777 $ 14,722 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of major classes of premises and equipment and the total amount of accumulated depreciation | The major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2017 and 2016 , are as follows: September 30, 2017 2016 (dollars in thousands) Land $ 25,973 $ 26,591 Buildings and building improvements 89,927 94,306 Furniture and equipment 26,160 27,597 Construction in progress 273 768 Total 142,333 149,262 Accumulated depreciation (30,124 ) (30,756 ) Premise and equipment, net $ 112,209 $ 118,506 |
Derivative Financial Instrume45
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions, notional amounts | The following table summarizes the notional amounts and estimated fair values of the Company’s derivative instruments at September 30, 2017 and 2016 . September 30, 2017 Notional Balance Sheet Positive Fair Negative Fair Derivatives not designated as hedging instruments: (dollars in thousands) Interest rate swaps $ 1,061,545 Liabilities $ 1,850 $ (19,005 ) Mortgage loan commitments 37,765 Assets — (48 ) Mortgage loan forward sale contracts 43,628 Liabilities 48 — September 30, 2016 Notional Balance Sheet Positive Fair Negative Fair Derivatives not designated as hedging instruments: (dollars in thousands) Interest rate swaps $ 1,055,822 Liabilities $ 525 $ (81,974 ) Mortgage loan commitments 52,333 Assets 66 — Mortgage loan forward sale contracts 60,529 Liabilities — (66 ) |
Schedule of derivative instruments, effect on other comprehensive income | The effect of derivatives on the consolidated statements of income for the years ended September 30, 2017 , 2016 and 2015 was as follows: Amount of Gain (Loss) Recognized in Income September 30, Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income 2017 2016 2015 (dollars in thousands) Interest rate swaps Noninterest income $ 49,900 $ (48,658 ) $ (62,088 ) Mortgage loan commitments Noninterest income (48 ) 66 95 Mortgage loan forward sale contracts Noninterest income 48 (66 ) (95 ) |
Summary of offsetting assets | The following tables present the Company's gross derivative financial assets and liabilities at September 30, 2017 and 2016 , and the related impact of enforceable master netting arrangements and cash collateral, where applicable: Gross Amount Amount Offset Net Amount Presented in Consolidated Balance Sheets Held/Pledged Financial Instruments 1 Net Amount September 30, 2017 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 1,850 $ (1,850 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (19,005 ) 1,850 (17,155 ) 17,155 — Total derivative financial liabilities $ (17,155 ) $ — $ (17,155 ) $ 17,155 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. Gross Amount Net Amount Held/Pledged 1 Net September 30, 2016 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 525 $ (525 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (81,974 ) 525 (81,449 ) 81,449 — Total derivative financial liabilities $ (81,449 ) $ — $ (81,449 ) $ 81,449 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. |
Summary of offsetting liabilities | The following tables present the Company's gross derivative financial assets and liabilities at September 30, 2017 and 2016 , and the related impact of enforceable master netting arrangements and cash collateral, where applicable: Gross Amount Amount Offset Net Amount Presented in Consolidated Balance Sheets Held/Pledged Financial Instruments 1 Net Amount September 30, 2017 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 1,850 $ (1,850 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (19,005 ) 1,850 (17,155 ) 17,155 — Total derivative financial liabilities $ (17,155 ) $ — $ (17,155 ) $ 17,155 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. Gross Amount Net Amount Held/Pledged 1 Net September 30, 2016 (dollars in thousands) Derivative financial assets: Derivatives subject to master netting arrangement or similar arrangement $ 525 $ (525 ) $ — $ — $ — Derivative financial liabilities: Derivatives subject to master netting arrangement or similar arrangement (81,974 ) 525 (81,449 ) 81,449 — Total derivative financial liabilities $ (81,449 ) $ — $ (81,449 ) $ 81,449 $ — 1 The actual amount of collateral exceeds the fair value exposure, at the individual counterparty level, as of the date presented. |
The Fair Value Option For Cer46
The Fair Value Option For Certain Loans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of changes in the fair value of items under the fair value option | Changes in fair value for items for which the fair value option has been elected and the line items in which these changes are reported within the consolidated statements of income are as follows for the years ended September 30, 2017 , 2016 and 2015 (in thousands): September 30, 2017 2016 2015 Noninterest Total Changes Noninterest Total Changes Noninterest Total Changes (dollars in thousands) Long-term loans and written loan commitments $ (65,231 ) $ (65,231 ) $ 26,314 $ 26,314 $ 36,742 $ 36,742 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes to the carrying amount of goodwill | A summary of changes to the carrying amount of goodwill as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Balance, beginning of year $ 739,023 $ 697,807 Goodwill acquired during the year — 41,216 Balance, end of year $ 739,023 $ 739,023 |
Core Deposits and Other Intan48
Core Deposits and Other Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The methods and lives used to amortize intangible assets are as follows: Intangible Method Years Core deposit Straight-line or effective yield 5 - 10 Brand intangible Straight-line 15 Customer relationships Straight-line 8.5 Other intangibles Straight-line 1.25 - 9.33 A summary of intangible assets subject to amortization as of September 30, 2017 and 2016 is as follows: Core Deposit Brand Customer Other Total As of September 30, 2017 (dollars in thousands) Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (61,258 ) (5,264 ) (16,089 ) (124 ) (82,735 ) Net intangible assets $ 5,760 $ 3,200 $ — $ 414 $ 9,374 As of September 30, 2016 Gross carrying amount $ 67,018 $ 8,464 $ 16,089 $ 538 $ 92,109 Accumulated amortization (59,842 ) (4,700 ) (15,800 ) (35 ) (80,377 ) Net intangible assets $ 7,176 $ 3,764 $ 289 $ 503 $ 11,732 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense of intangible assets in subsequent fiscal years is as follows: Amount (dollars in thousands) 2018 $ 1,662 2019 1,538 2020 1,430 2021 1,334 2022 1,249 2023 and thereafter 2,161 Total $ 9,374 |
Loan Servicing Rights (Tables)
Loan Servicing Rights (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of loan servicing rights and valuation allowance activity | The following table is the activity for loan servicing rights and the related valuation allowance: September 30, 2017 2016 2015 (dollars in thousands) Loan servicing rights Beginning of year $ 5,794 $ — $ — Acquired in HF Financial acquisition — 6,573 — Additions — — — Amortization 1 (1,639 ) (779 ) — End of year $ 4,155 $ 5,794 $ — Valuation allowance Beginning of year $ (13 ) $ — $ — Additions / (reductions) 1 (68 ) (13 ) — End of year $ (81 ) $ (13 ) $ — Loan servicing rights, net $ 4,074 $ 5,781 $ — Servicing fees received $ 2,033 $ 930 $ — Balance of loans serviced at: Beginning of year 868,865 — — End of year 722,461 868,865 — 1 Changes to carrying amounts are reported net of loan servicing income on the consolidated statements of income for the periods presented. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Summary of the composition of deposits | The composition of deposits as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Noninterest-bearing demand $ 1,856,126 $ 1,880,512 NOW accounts, money market and savings 5,847,432 5,343,183 Time deposits, $250,000 or more 273,365 265,904 Other time deposits 1,000,690 1,115,191 Total $ 8,977,613 $ 8,604,790 |
Schedule of time deposit maturities | At September 30, 2017 , the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2018. Amount (dollars in thousands) 2018 $ 768,026 2019 273,140 2020 126,145 2021 60,644 2022 44,339 2023 and thereafter 1,761 Total $ 1,274,055 |
Securities Sold Under Agreeme51
Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 . September 30, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase agreements (dollars in thousands) Municipal securities $ 3,626 $ — $ — $ — $ 3,626 Mortgage-backed securities 129,010 — — — 129,010 Total repurchase agreements $ 132,636 $ — $ — $ — $ 132,636 September 30, 2016 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Repurchase agreements (dollars in thousands) Municipal securities $ — — $ — $ — $ — — $ — Mortgage-backed securities 138,744 — — 2,944 141,688 Total repurchase agreements $ 138,744 $ — $ — $ 2,944 $ 141,688 |
FHLB Advances and Other Borro52
FHLB Advances and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB advances and other borrowings | FHLB advances and other borrowings consist of the following at September 30, 2017 and 2016 : September 30, 2017 2016 (dollars in thousands) Short-term borrowings: Notes payable to Federal Home Loan Bank (FHLB), interest rates from 1.25% to 1.27% and maturity dates of October 2017, collateralized by real estate loans and FHLB stock, with various call dates at the option of the FHLB $ 512,200 $ — Federal Home Loan Bank fed funds advance, interest rate of 1.33%, maturity date of October 2018 75,000 231,000 Long-term borrowings: Notes payable to Federal Home Loan Bank (FHLB), interest rates from 1.05% to 3.66% and maturity dates from April 2018 to July 2023, collateralized by real estate loans and FHLB stock, with various call dates at the option of the FHLB 56,000 640,000 Total 643,200 871,000 Fair value adjustment 1 $ 14 $ 37 Total FHLB advances and other borrowings $ 643,214 $ 871,037 1 Adjustment reflects the fair value adjustments related to the FHLB advances and notes payable assumed as part of the HF Financial acquisition. |
Summary of FHLB advances and other borrowings by maturity date | As of September 30, 2017 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows: Amount (dollars in thousands) 2018 $ 543,200 2019 75,000 2020 — 2021 — 2022 — 2023 and thereafter 25,000 Total $ 643,200 |
Subordinated Debentures and S53
Subordinated Debentures and Subordinated Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of subordinated debentures and subordinated notes payable | Subordinated debentures and subordinated notes payable are summarized as follows: September 30, 2017 September 30, 2016 Amount outstanding Common Shares Held in Other Assets Amount outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to nonconsolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GWB Capital 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 10,310 310 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 80,920 $ 2,520 Less: fair value adjustment 1 (2,409 ) (3,765 ) Total junior subordinated debentures payable, net of fair value adjustment 73,511 77,155 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (209 ) (282 ) Total subordinated notes payable 34,791 34,718 Total subordinated debentures and subordinated notes payable $ 108,302 $ 111,873 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, 2017 | |
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 years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Currently paid or payable Federal $ 56,171 $ 51,749 $ 38,105 State 10,639 8,677 7,342 Total 66,810 60,426 45,447 Deferred tax (benefit) expense Federal 2,477 (1,513 ) 6,688 State 154 $ (50 ) $ 352 Total 2,631 (1,563 ) 7,040 Total provision for income taxes $ 69,441 $ 58,863 $ 52,487 |
Schedule of effective income tax rate reconciliation | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to pretax income due to the following for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Income tax expense computed at the statutory rate $ 74,979 $ 63,041 $ 56,543 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 7,015 5,608 4,772 Tax exempt interest income (7,973 ) (7,534 ) (6,560 ) Tax benefit of stock-based compensation plans (2,153 ) — — Other (2,427 ) (2,252 ) (2,268 ) Income tax expense, as reported $ 69,441 $ 58,863 $ 52,487 |
Schedule of deferred tax assets and liabilities | Net deferred tax assets (liabilities) consist of the following components at September 30, 2017 and 2016 : September 30, 2017 2016 (dollars in thousands) Deferred tax assets: Allowance for loan and lease losses $ 23,730 $ 24,016 Compensation 6,227 6,306 Net operating loss carryforward — 17 Securities available for sale 3,413 — Other real estate owned 763 1,231 Core deposit intangible and other fair value adjustments 6,058 7,303 Excess tax basis of FDIC indemnification asset and clawback liability 4,563 2,514 Excess tax basis of loans acquired over carrying value 9,417 12,896 Other reserves 4,406 2,989 Other 6,922 4,580 Total deferred tax assets 65,499 61,852 Deferred tax liabilities: Goodwill and other intangibles (13,784 ) (11,555 ) Securities available for sale — (3,398 ) Premises and equipment (8,828 ) (7,758 ) Other (487 ) (795 ) Total deferred tax liabilities (23,099 ) (23,506 ) Net deferred tax assets $ 42,400 $ 38,346 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Summary of pension plan funded status | The following table sets forth the pension plan funded status, using the valuation date of September 30, 2017 : September 30, 2017 2016 (dollars in thousands) Changes in benefit obligations: Benefit obligations, beginning of year $ 6,355 — Acquired in HF Financial acquisition — 8,642 Service cost 50 21 Interest cost 223 176 Benefits paid (803 ) (2,677 ) Plan changes — — Assumption changes (286 ) 265 Actuarial loss (167 ) (72 ) Benefit obligations, end of year $ 5,372 $ 6,355 September 30, 2017 2016 (dollars in thousands) Changes in plan assets: Fair value of plan assets, beginning of year $ 3,359 $ — Acquired in HF Financial acquisition — 5,642 Actual return on plan assets 277 226 Company contributions 260 168 Benefits paid (803 ) (2,677 ) Fair value of plan assets, end of year $ 3,093 $ 3,359 Funded status 1 $ (2,279 ) $ (2,996 ) Amounts recognized in accumulated other comprehensive income (loss) consists of net gain $ 329 $ — Accumulated benefit obligation $ 5,372 $ 6,355 1 Amounts included in other liabilities in the consolidated balance sheets. |
Components of net periodic benefit cost | Information relative to the components of net periodic benefit cost measured at/or for the fiscal years ended September 30, 2017 , 2016 and 2015 for the defined benefit plan is presented below: September 30, 2017 2016 2015 (dollars in thousands) Net periodic benefit cost Service cost $ 50 $ 21 $ — Interest cost 223 176 — Expected return on plan assets (258 ) (190 ) — Amortization of prior losses — 50 — Net periodic benefit cost $ 15 $ 57 $ — Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net gain 329 — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 314 $ (57 ) $ — |
Summary of weighted-average assumptions used | The weighted-average assumptions used to determine benefit obligations are as follows as of September 30, 2017 and 2016 : September 30, 2017 2016 Discount rate - pre-retirement 3.83 % 3.57 % Discount rate - post-retirement 3.83 % 3.57 % Rate of compensation increase 1 N/A N/A 1 Effective July 1, 2015, the plan was frozen whereby the rate of compensation increases, which relate to future additional contributions to the plan, are not applicable in the future. The weighted-average assumptions used to determine net periodic benefit costs are as follows as of September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 Discount rate - pre-retirement 3.83 % 3.57 % — % Discount rate - post-retirement 3.83 % 3.57 % — % Rate of compensation increase 4.00 % 4.00 % — % Expected long-term return on plan assets 8.00 % 8.00 % — % |
Summary of plan asset allocation | Fair Value Actual Asset Mix as a % of Market Value Target Asset Mix as a % of Market Value As of September 30, 2017 (dollars in thousands) Equities $ — — % 55.00 % 1 Fixed — — % 30.00 % 2 Other — — % 10.00 % 3 Cash and cash equivalents 3,093 100 % 5.00 % 2 Total pension plan assets $ 3,093 100.00 % 100.00 % As of September 30, 2016 Equities $ 2,200 65.50 % 55.00 % 1 Fixed 1,130 33.63 % 30.00 % 2 Other — — % 10.00 % 3 Cash and cash equivalents 29 0.87 % 5.00 % 2 Total pension plan assets $ 3,359 100.00 % 100.00 % 1 Includes a plus/minus range of 10.0% 2 Includes a plus/minus range of 5.0% 3' Maximum allocation of 10.0% The following table shows the fair values of the Company's pension plan assets by asset category at September 30, 2017 . Information about the valuation techniques and inputs used to measure fair value is provided in Note 25 Fair Value Measurements. Fair Value Level 1 Level 2 Level 3 As of September 30, 2017 (dollars in thousands) Cash and cash equivalents $ 3,093 $ 3,093 $ — $ — Equity securities: Domestic fund — — — — International fund — — — — Emerging markets fund — — — — Fixed income securities: International fixed income fund — — — — Taxable fixed income fund — — — — Total pension plan assets $ 3,093 $ 3,093 $ — $ — As of September 30, 2016 Cash and cash equivalents $ 29 $ 29 $ — $ — Equity securities: Domestic fund 1,499 1,499 — — International fund 551 551 — — Emerging markets fund 150 150 — — Fixed income securities: International fixed income fund 310 310 — — Taxable fixed income fund 820 820 — — Total pension plan assets $ 3,359 $ 3,359 $ — $ — |
Maturity of estimated future benefit payments | The following estimated future benefit payments are expected to be paid during the fiscal years ended September 30 : Amount (dollars in thousands) 2018 $ 5,400 2019 — 2020 — 2021 — 2022 — Total $ 5,400 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [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, 2017 and 2016 . The number of performance shares granted is reflected in the below table at the amount of achievement of the pre-established targets. September 30, 2017 September 30, 2016 Common Shares Weighted-Average Grant Date Fair Value Common Shares Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 160,335 $ 26.89 80,446 $ 18.18 Granted 90,363 39.35 113,543 30.95 Vested and issued (68,293 ) 26.97 (25,729 ) 18.11 Forfeited (2,068 ) 30.91 (7,925 ) 25.09 Canceled — — — — Restricted shares, end of fiscal year 180,337 $ 33.06 160,335 $ 26.89 Vested, but not issuable at end of fiscal year 29,287 $ 30.05 24,480 $ 26.14 Performance Shares Performance shares, beginning of fiscal year 236,185 $ 20.28 211,026 $ 18.00 Granted 137,612 39.43 43,371 30.78 Vested and issued (235,055 ) 18.00 (55 ) 18.00 Forfeited (5,138 ) 19.80 (18,157 ) 18.83 Canceled — — — — Performance shares, end of fiscal year 133,604 $ 33.39 236,185 $ 20.28 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of regulatory capital amounts and requirements | Capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well Capitalized Under Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2017 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,101,899 11.4 % $ 579,947 6.0 % N/A N/A Bank 1,112,466 11.6 % 575,413 6.0 % $ 767,218 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,200,885 12.5 % 768,566 8.0 % N/A N/A Bank 1,176,451 12.2 % 771,443 8.0 % 964,304 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,101,899 10.3 % 427,922 4.0 % N/A N/A Bank 1,112,466 10.4 % 427,872 4.0 % 534,839 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,028,389 10.7 % 432,500 4.5 % N/A N/A Bank $ 1,112,466 11.6 % $ 431,560 4.5 % $ 623,365 6.5 % As of September 30, 2016 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,001,873 11.1 % $ 541,553 6.0 % N/A N/A Bank 1,023,386 11.3 % 543,391 6.0 % $ 724,521 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,101,997 12.2 % 722,621 8.0 % N/A N/A Bank 1,088,511 12.0 % 725,674 8.0 % 907,093 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,001,873 9.5 % 421,841 4.0 % N/A N/A Bank 1,023,386 9.7 % 422,015 4.0 % 527,519 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 924,718 10.2 % 407,964 4.5 % N/A N/A Bank $ 1,023,386 11.3 % $ 407,543 4.5 % $ 588,673 6.5 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the Company's commitments | A summary of the Company’s commitments as of September 30, 2017 and 2016 is as follows: September 30, 2017 2016 (dollars in thousands) Commitments to extend credit $ 2,515,653 $ 2,158,041 Letters of credit 70,186 61,802 |
Schedule of future minimum rental payments | Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows: Amount (dollars in thousands) 2018 $ 5,157 2019 4,523 2020 3,863 2021 2,737 2022 2,157 2023 and thereafter 6,629 Total $ 25,066 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and September 30, 2016 : Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2017 U.S. Treasury securities $ 228,603 $ 228,603 $ — $ — Mortgage-backed securities 1,065,737 — 1,065,737 — States and political subdivision securities 72,586 — 71,517 1,069 Corporate debt securities — — — — Other 1,034 — 1,034 — Total securities available for sale $ 1,367,960 $ 228,603 $ 1,138,288 $ 1,069 Derivatives-assets $ 48 $ — $ 48 $ — Derivatives-liabilities 17,107 — 17,107 — Fair value loans and written loan commitments 1,016,576 — 1,016,576 — As of September 30, 2016 U.S. Treasury securities $ 230,980 $ 230,980 $ — $ — Mortgage-backed securities 1,023,319 — 1,023,319 — States and political subdivision securities 55,484 — 54,169 1,315 Corporate debt securities 5,022 — 5,022 — Other 1,055 — 1,055 — Total securities available for sale $ 1,315,860 $ 230,980 $ 1,083,565 $ 1,315 Derivatives-assets $ 66 $ — $ 66 $ — Derivatives-liabilities 81,515 — 81,515 — Fair value loans and written loan commitments 1,131,111 — 1,131,111 — |
Summary of the changes in Level 3 financial instruments | The following table presents the changes in Level 3 financial instruments for the years ended September 30, 2017 , 2016 and 2015 : September 30, 2017 2016 2015 (dollars in thousands) Balance, beginning of year $ 1,315 $ 1,835 $ 2,029 Additions — 15 — Principal paydown (246 ) (235 ) (195 ) Unrealized gain included in other comprehensive income — — 1 Realized loss on securities — (300 ) — Balance, end of year $ 1,069 $ 1,315 $ 1,835 |
Summary of the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis | The following tables present the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2017 and 2016 : Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2017 Other real estate owned $ 7,728 $ — $ — $ 7,728 Impaired loans 185,388 — — 185,388 Loans held for sale, at lower of cost or fair value 7,456 — 7,456 — Loan servicing rights 4,074 — — 4,074 Property held for sale 5,147 — — 5,147 As of September 30, 2016 Other real estate owned $ 6,911 $ — $ — $ 6,911 Impaired loans 190,743 — — 190,743 Loans held for sale, at lower of cost or fair value 12,918 — 12,918 — Loan servicing rights 5,781 — — 5,781 Property held for sale 8,112 — — 8,112 |
Valuation techniques and significant observable inputs | The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2017 were as follows: Fair Value of Assets / (Liabilities) at September 30, 2017 Valuation Unobservable Range Weighted (dollars in thousands) Other real estate owned $ 7,728 Appraisal value Property specific adjustment N/A N/A Impaired loans $ 185,388 Appraisal value Property specific adjustment N/A N/A Loan servicing rights $ 4,074 Discounted cash flows Constant prepayment rate 9.7 - 23.0% 12.5% Property held for sale $ 5,147 Appraisal value Property specific adjustment N/A N/A |
Summary of fair values for balance sheet instruments | Fair values for balance sheet instruments as of September 30, 2017 and 2016 , are as follows: September 30, 2017 September 30, 2016 Level in Carrying Fair Value Carrying Fair Value (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 360,396 $ 360,396 $ 524,611 $ 524,611 Loans, net excluding fair valued loans and loans held for sale Level 3 7,881,018 7,798,134 7,473,973 7,433,851 Accrued interest receivable Level 2 53,176 53,176 49,531 49,531 Cash surrender value of life insurance policies Level 2 29,619 29,619 29,166 29,166 Federal Home Loan Bank stock Level 2 37,551 37,551 47,025 47,025 Liabilities Deposits Level 2 $ 8,977,613 $ 8,978,926 $ 8,604,790 $ 8,603,708 FHLB advances and other borrowings Level 2 643,214 645,421 871,037 874,763 Securities sold under repurchase agreements Level 2 132,636 132,636 141,688 141,688 Accrued interest payable Level 2 4,405 4,405 4,074 4,074 Subordinated debentures and subordinated notes payable Level 2 108,302 108,293 111,873 112,826 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following information was used in the computation of basic and diluted earnings per share (EPS) for the years ended September 30, 2017 , 2016 and 2015 . September 30, 2017 2016 2015 (dollars in thousands, except per share data) Net income $ 144,786 $ 121,253 $ 109,065 Weighted average common shares outstanding 58,770,708 56,563,438 57,455,693 Dilutive effect of stock based compensation 258,674 165,912 45,185 Weighted average common shares outstanding for diluted earnings per share calculation 59,029,382 56,729,350 57,500,878 Basic earnings per share $ 2.46 $ 2.14 $ 1.90 Diluted earnings per share $ 2.45 $ 2.14 $ 1.90 |
Parent Company Only Financial61
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets (Dollars in Thousands) September 30, 2017 2016 (dollars in thousands) Assets Cash and cash equivalents $ 15,004 $ 6,521 Investment in subsidiaries 1,839,293 1,762,070 Accrued interest receivable 9 8 Net deferred tax assets 1,502 855 Other assets 8,506 7,685 Total assets $ 1,864,314 $ 1,777,139 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,302 $ 111,873 Accrued interest payable 465 431 Accrued expenses and other liabilities 547 1,444 Total liabilities 109,314 113,748 Stockholders’ equity Common stock 588 587 Additional paid-in capital 1,314,039 1,312,347 Retained earnings 445,747 344,923 Accumulated other comprehensive income (5,374 ) 5,534 Total stockholders’ equity 1,755,000 1,663,391 Total liabilities and stockholders’ equity $ 1,864,314 $ 1,777,139 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income (Dollars in Thousands) Years Ended September 30, 2017 2016 2015 (dollars in thousands) Income Dividends from subsidiary bank $ 62,470 $ 70,582 $ 88,647 Dividends on securities 123 223 304 Other 62 48 53 Total income 62,655 70,853 89,004 Expenses Interest on related party notes payable — — 771 Interest on subordinated debentures and subordinated notes payable 4,464 3,737 1,557 Salaries and employee benefits 6,847 3,723 1,547 Professional fees 631 378 722 Acquisition expenses — 1,010 — Other 2,204 2,512 2,224 Total expense 14,146 11,360 6,821 Income before income tax and equity in undistributed net income of subsidiaries 48,509 59,493 82,183 Income tax benefit (8,147 ) (3,414 ) (2,850 ) Income before equity in undistributed net income of subsidiaries 56,656 62,907 85,033 Equity in undistributed net income of subsidiaries 88,130 58,346 24,032 Net income $ 144,786 $ 121,253 $ 109,065 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in Thousands) Years Ended September 30, 2017 2016 2015 (dollars in thousands) Operating Activities Net income $ 144,786 $ 121,253 $ 109,065 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 165 36 12 Gain on redemption of subordinated debentures (111 ) — — Stock-based compensation 6,810 3,517 1,236 Deferred income taxes (1,796 ) 3 (5,351 ) Changes in: Accrued interest receivable (1 ) (3 ) — Other assets (822 ) (187 ) 2,510 Accrued interest and other liabilities 286 225 264 Equity in undistributed net income of subsidiaries (88,130 ) (58,346 ) (24,032 ) Net cash provided by operating activities 61,187 66,498 83,704 Investing activities Business acquisitions, net of cash acquired — (30,832 ) — Net cash used in investing activities — (30,832 ) — Financing Activities Proceeds from issuance of subordinated notes payable, net — — 34,632 Redemption of subordinated debentures (3,625 ) — — Payment of related party notes payable — — (41,295 ) Common stock repurchased (5,605 ) — (60,000 ) Dividends paid (43,474 ) (31,419 ) (20,520 ) Net cash used in financing activities (52,704 ) (31,419 ) (87,183 ) Net increase (decrease) in cash and cash equivalents 8,483 4,247 (3,479 ) Cash and cash equivalents, beginning of year 6,521 2,274 5,753 Cash and cash equivalents, end of year $ 15,004 $ 6,521 $ 2,274 |
Nature of Operations and Summ62
Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) | Oct. 26, 2017$ / shares | Sep. 30, 2017USD ($)portfolio_classreporting_unitsegment$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Dec. 31, 2010agreement | Sep. 30, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Dividends per share (in dollars per share) | $ / shares | $ 0.74 | $ 0.56 | $ 0.36 | ||||
Maturity period of loans and loan commitments | 5 years | ||||||
Number of loan portfolio classes | portfolio_class | 6 | ||||||
FDIC Indemnification, number of loss share agreements entered | agreement | 2 | ||||||
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 | $ 1,600,000 | $ 1,400,000 | |||||
Impairment of long-lived assets | 0 | 0 | $ 0 | ||||
Impairment of goodwill | $ 0 | 0 | 0 | ||||
Number of reporting units | reporting_unit | 1 | ||||||
Impairment of intangible assets | $ 0 | 0 | 0 | ||||
Valuation allowance for impairment of recognized servicing assets | (68,000) | (13,000) | 0 | ||||
Cumulative effect adjustment | [1] | (263,000) | |||||
Provision for income taxes | 69,441,000 | 58,863,000 | 52,487,000 | ||||
Increase to total equity | 1,755,000,000 | 1,663,391,000 | 1,459,346,000 | $ 1,421,090,000 | |||
Additional Paid-in Capital | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Cumulative effect adjustment | [1] | (751,000) | |||||
Increase to total equity | 1,314,039,000 | 1,312,347,000 | 1,201,387,000 | $ 1,260,124,000 | |||
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2016-09 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Provision for income taxes | $ 300,000 | $ 0 | $ 0 | ||||
Impact on diluted earnings per common share (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | ||||
Increase to total equity | $ 300,000 | ||||||
Increase to deferred tax assets | 300,000 | ||||||
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2016-09 | Additional Paid-in Capital | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Cumulative effect adjustment | $ 300,000 | $ 0 | $ 0 | ||||
Single family residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
FDIC Indemnification, number of loss share agreements entered | agreement | 1 | ||||||
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 | ||||||
Subsequent Event | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Dividends per share (in dollars per share) | $ / shares | $ 0.2 | ||||||
[1] | Cumulative effect adjustment related to adoption of ASU 2016-09 |
Nature of Operations and Summ63
Nature of Operations and Summary of Significant Accounting Policies - Amortization Method and Estimated Lives of Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Core deposit | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 5 years |
Core deposit | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 10 years |
Brand intangible | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 15 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life | 8 years 6 months |
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 4 months |
Acquisition Activity - Narrativ
Acquisition Activity - Narrative (Details) | May 16, 2016USD ($)bank$ / sharesshares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 739,023,000 | $ 739,023,000 | $ 739,023,000 | $ 697,807,000 | |
Acquisition expenses | 710,000 | 15,692,000 | 0 | ||
HF Financial Corp | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 100.00% | ||||
Equity interest issued per share as part of merger (in shares) | shares | 0.65 | ||||
Consideration paid as part of merger (in dollars per share) | $ / shares | $ 19.50 | ||||
Percentage of outstanding shares exchanged for cash as part of merger | 24.29% | ||||
Percentage of outstanding shares exchanged for common stock as part of merger | 75.71% | ||||
Net purchase price | $ 141,965,000 | ||||
Goodwill | $ 41,216,000 | ||||
Number of bank locations acquired | bank | 23 | ||||
Goodwill expected to be tax deductible | $ 0 | ||||
Intangible assets and loan servicing rights | 14,500,000 | ||||
Increase in goodwill | $ 600,000 | ||||
Acquisition expenses | $ 700,000 | $ 15,700,000 | $ 0 | ||
Net loans acquired | 863,741,000 | ||||
Acquired loans, estimated discount | $ 28,500,000 | ||||
Acquired loans, percentage of estimated discount (as a percent) | 3.30% | ||||
HF Financial Corp | Receivables acquired with deteriorated credit quality | |||||
Business Acquisition [Line Items] | |||||
Net loans acquired | $ 65,400,000 |
Acquisition Activity - Schedule
Acquisition Activity - Schedule of Consideration (Details) - USD ($) $ in Thousands | May 16, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Non-equity consideration: | ||||
Goodwill | $ 739,023 | $ 739,023 | $ 697,807 | |
HF Financial Corp | ||||
Equity consideration: | ||||
Common stock issued (in shares) | 3,448,119 | |||
Common stock issued | $ 107,478 | |||
Non-equity consideration: | ||||
Cash | 34,487 | |||
Total consideration paid | 141,965 | |||
Fair value of net assets acquired including identifiable intangible assets | 100,749 | |||
Goodwill | $ 41,216 |
Acquisition Activity - Schedu66
Acquisition Activity - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 16, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Liabilities assumed: | ||||
Goodwill | $ 739,023 | $ 739,023 | $ 697,807 | |
HF Financial Corp | ||||
Identifiable assets acquired: | ||||
Cash and cash equivalents | $ 18,818 | |||
Investment securities | 165,052 | |||
Loans | 863,741 | |||
Premises and equipment | 19,220 | |||
Accrued interest receivable | 4,117 | |||
Other repossessed property | 4 | |||
Intangible assets | 7,877 | |||
Loan servicing rights | 6,573 | |||
Other assets | 36,076 | |||
Total identifiable assets acquired | 1,121,478 | |||
Liabilities assumed: | ||||
Deposits | 863,121 | |||
FHLB advances and other borrowings | 115,881 | |||
Subordinated debentures | 21,110 | |||
Other liabilities | 20,617 | |||
Total liabilities assumed | 1,020,729 | |||
Fair value of net identifiable assets acquired | 100,749 | |||
Net purchase price | 141,965 | |||
Goodwill | $ 41,216 |
Acquisition Activity - Schedu67
Acquisition Activity - Schedule of Pro Forma Information (Details) - HF Financial Corp - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | |||
Net interest income | $ 396,347 | $ 386,454 | $ 370,778 |
Net income | $ 144,786 | $ 126,286 | $ 114,731 |
Basic earnings per share (in dollars per share) | $ 2.46 | $ 2.23 | $ 2 |
Fully diluted earnings per share (in dollars per share) | $ 2.45 | $ 2.23 | $ 2 |
Acquisition Activity - Schedu68
Acquisition Activity - Schedule of Total Contractually Required Principal and Interest (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | May 16, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||
Accretable yield | $ (44,131) | $ (38,124) | $ (44,489) | $ (50,889) | |
HF Financial Corp | Receivables acquired with deteriorated credit quality | |||||
Business Acquisition [Line Items] | |||||
Contractually required principal and interest | $ 83,710 | ||||
Non-accretable difference | (28,516) | ||||
Cash flows expected to be collected | 55,194 | ||||
Accretable yield | (3,662) | ||||
Total purchased credit impaired loans acquired | $ 51,532 |
Acquisition Activity - Schedu69
Acquisition Activity - Schedule of Acquired Loans (Details) - HF Financial Corp $ in Thousands | May 16, 2016USD ($) |
Business Acquisition [Line Items] | |
Fair Value of Acquired Loans at Acquisition Date | $ 812,209 |
Gross Contractual Amounts Receivable at Acquisition Date | 998,255 |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | 9,572 |
Receivables acquired with deteriorated credit quality | |
Business Acquisition [Line Items] | |
Fair Value of Acquired Loans at Acquisition Date | 51,532 |
Gross Contractual Amounts Receivable at Acquisition Date | 83,710 |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | $ 28,516 |
Restrictions on Cash and Cash70
Restrictions on Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Reserve balances | $ 26.9 | $ 94.9 |
Securities Available for Sale -
Securities Available for Sale - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | $ 1,376,942 | $ 1,306,919 |
Gross Unrealized Gains | 1,845 | 11,027 |
Gross Unrealized Losses | (10,827) | (2,086) |
Estimated Fair Value | 1,367,960 | 1,315,860 |
U.S. Treasury securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 228,039 | 227,007 |
Gross Unrealized Gains | 579 | 3,973 |
Gross Unrealized Losses | (15) | 0 |
Estimated Fair Value | 228,603 | 230,980 |
Mortgage backed-securities | Government National Mortgage Association | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 511,457 | 664,529 |
Gross Unrealized Gains | 228 | 3,172 |
Gross Unrealized Losses | (6,635) | (1,922) |
Estimated Fair Value | 505,050 | 665,779 |
Mortgage backed-securities | Federal National Mortgage Association | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 339,394 | 210,933 |
Gross Unrealized Gains | 97 | 1,324 |
Gross Unrealized Losses | (2,534) | 0 |
Estimated Fair Value | 336,957 | 212,257 |
Mortgage backed-securities | Small Business Assistance Program | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 224,005 | 142,921 |
Gross Unrealized Gains | 726 | 2,362 |
Gross Unrealized Losses | (1,001) | 0 |
Estimated Fair Value | 223,730 | 145,283 |
States and political subdivision securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 73,041 | 55,525 |
Gross Unrealized Gains | 187 | 123 |
Gross Unrealized Losses | (642) | (164) |
Estimated Fair Value | 72,586 | 55,484 |
Corporate debt securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 0 | 4,998 |
Gross Unrealized Gains | 0 | 24 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 5,022 |
Other | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 1,006 | 1,006 |
Gross Unrealized Gains | 28 | 49 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 1,034 | $ 1,055 |
Securities Available for Sale72
Securities Available for Sale - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Amortized Cost | ||
Due in one year or less | $ 91,535 | $ 3,706 |
Due after one year through five years | 193,117 | 262,333 |
Due after five years through ten years | 16,306 | 21,369 |
Due after ten years | 122 | 122 |
Amortized Cost | 301,080 | 287,530 |
Estimated Fair Value | ||
Due in one year or less | 91,597 | 3,709 |
Due after one year through five years | 193,373 | 266,312 |
Due after five years through ten years | 16,097 | 21,343 |
Due after ten years | 122 | 122 |
Estimated Fair Value | 301,189 | 291,486 |
Amortized Cost | 1,376,942 | 1,306,919 |
Estimated Fair Value | 1,367,960 | 1,315,860 |
Securities without contractual maturities, Amortized Cost | 1,006 | 1,006 |
Securities without contractual maturities, Fair Value | 1,034 | 1,055 |
Mortgage-backed securities | ||
Estimated Fair Value | ||
Amortized Cost | 1,074,856 | 1,018,383 |
Estimated Fair Value | $ 1,065,737 | $ 1,023,319 |
Securities Available for Sale73
Securities Available for Sale - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities available for sale | $ 5,074,000 | $ 145,934,000 | $ 105,190,000 |
Available-for-sale securities, gross realized gains | 100,000 | 500,000 | 800,000 |
Available-for-sale securities, gross realized losses | 0 | 0 | 500,000 |
Other than temporary impairment losses recognized in earnings | 0 | $ 400,000 | $ 0 |
Number of security holdings attributable to credit | security | 2 | ||
Securities pledged as collateral | $ 951,400,000 | $ 971,300,000 | |
Percentage of investment portfolio in continuous loss position (as a percent) | 68.00% | 25.00% | |
Number of securities in an unrealized loss position | security | 249 | 110 |
Securities Available for Sale74
Securities Available for Sale - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 667,677 | $ 45,461 |
12 months or more, Fair Value | 267,141 | 284,995 |
Estimated Fair Value | 934,818 | 330,456 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (5,637) | (170) |
12 months or more, Unrealized Losses | (5,190) | (1,916) |
Unrealized Losses | (10,827) | (2,086) |
U.S. Treasury securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | 10,003 | 0 |
12 months or more, Fair Value | 0 | 0 |
Estimated Fair Value | 10,003 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (15) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (15) | 0 |
Mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | 635,969 | 17,528 |
12 months or more, Fair Value | 241,368 | 284,995 |
Estimated Fair Value | 877,337 | 302,523 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (5,425) | (6) |
12 months or more, Unrealized Losses | (4,746) | (1,916) |
Unrealized Losses | (10,171) | (1,922) |
States and political subdivision securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | 21,705 | 27,933 |
12 months or more, Fair Value | 25,773 | 0 |
Estimated Fair Value | 47,478 | 27,933 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (197) | (164) |
12 months or more, Unrealized Losses | (444) | 0 |
Unrealized Losses | $ (641) | $ (164) |
Loans - Schedule of Financing R
Loans - Schedule of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 9,008,515 | $ 8,735,918 |
Less: | ||
Less: Unamortized discount on acquired loans | (29,121) | (39,947) |
Unearned net deferred fees and costs and loans in process | (10,841) | (13,327) |
Total | 8,968,553 | 8,682,644 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 4,124,805 | 3,754,107 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 2,122,138 | 2,168,937 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 1,718,914 | 1,673,166 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 932,892 | 1,020,958 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 66,559 | 76,273 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 43,207 | $ 42,477 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans covered by FDIC loss share agreements | $ 57,537 | $ 73,272 | |
Loans held for sale | 7,456 | 12,918 | |
Loans and written loan commitments at fair value under the fair value option | 1,016,576 | 1,131,111 | |
Unamortized discount on acquired loans | 11,600 | 8,600 | |
Loans in process | (800) | 4,700 | |
Guaranteed loans | 7,787,016 | 7,431,936 | |
Principal balances of residential real estate loans sold | 280,500 | 291,200 | |
Loans greater than 90 days past due and still accruing interest | 1,900 | 2,000 | |
Valuation adjustments made to repossessed properties | 1,700 | 1,800 | |
Specific reserves included in the allowance for loan losses for TDRs | 8,800 | 9,300 | |
Troubled debt restructuring, commitments to lend additional funds to borrowers | 0 | 900 | |
Transfers out of troubled debt restructuring status | 5,500 | 22,300 | $ 14,500 |
Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and written loan commitments at fair value under the fair value option | 1,020,000 | 1,130,000 | |
Loans Guaranteed by US Government Authorities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Guaranteed loans | $ 168,300 | $ 120,000 |
Loans - Summary of Nonaccrual L
Loans - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 132,225 | $ 113,636 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 14,693 | 13,870 |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 99,325 | 66,301 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 13,674 | 27,280 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 4,421 | 5,962 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 112 | $ 223 |
Loans - Composition of the Loan
Loans - Composition of the Loan Portfolio by Internal Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | $ 7,905,281 | $ 7,491,586 |
Loans covered by FDIC loss share agreements | 57,537 | 73,272 |
Total | 7,962,818 | 7,564,858 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 7,429,041 | 6,921,071 |
Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 273,825 | 327,608 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 197,692 | 241,605 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 4,723 | 1,302 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 3,638,032 | 3,414,758 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 3,638,032 | 3,414,758 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 3,519,689 | 3,276,048 |
Commercial real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 80,195 | 81,148 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 37,627 | 57,415 |
Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 521 | 147 |
Commercial real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,865,882 | 1,849,869 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 1,865,882 | 1,849,869 |
Agriculture | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,577,403 | 1,514,344 |
Agriculture | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 157,407 | 204,326 |
Agriculture | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 130,953 | 130,569 |
Agriculture | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 119 | 630 |
Agriculture | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,426,960 | 1,173,910 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 1,426,960 | 1,173,910 |
Commercial non-real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,369,803 | 1,093,913 |
Commercial non-real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 31,878 | 37,283 |
Commercial non-real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 21,438 | 42,319 |
Commercial non-real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 3,841 | 395 |
Commercial non-real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 865,034 | 934,980 |
Loans covered by FDIC loss share agreements | 57,537 | 73,272 |
Total | 922,571 | 1,008,252 |
Residential real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 853,266 | 919,224 |
Residential real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 4,158 | 4,741 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 7,368 | 10,885 |
Residential real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 242 | 130 |
Residential real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 66,166 | 75,592 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 66,166 | 75,592 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 65,673 | 75,065 |
Consumer | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 187 | 110 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 306 | 417 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Consumer | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 43,207 | 42,477 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 43,207 | 42,477 |
Other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 43,207 | |
Other | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Other | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | $ 0 | $ 0 |
Loans - Past Due Loans (Details
Loans - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | $ 7,905,281 | $ 7,491,586 |
Loans covered by FDIC loss sharing agreements | 57,537 | 73,272 |
Total | 7,962,818 | 7,564,858 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 69,142 | 40,094 |
Loans covered by FDIC loss sharing agreements | 1,790 | 2,944 |
Total | 70,932 | 43,038 |
Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 6,313 | 4,364 |
Loans covered by FDIC loss sharing agreements | 998 | 1,404 |
Total | 7,311 | 5,768 |
Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 25,932 | 8,751 |
Loans covered by FDIC loss sharing agreements | 54 | 1,173 |
Total | 25,986 | 9,924 |
Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 36,897 | 26,979 |
Loans covered by FDIC loss sharing agreements | 738 | 367 |
Total | 37,635 | 27,346 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 7,836,139 | 7,451,492 |
Loans covered by FDIC loss sharing agreements | 55,747 | 70,328 |
Total | 7,891,886 | 7,521,820 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 3,638,032 | 3,414,758 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 3,638,032 | 3,414,758 |
Commercial real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 29,916 | 7,469 |
Commercial real estate | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 876 | 1,765 |
Commercial real estate | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 22,536 | 1,959 |
Commercial real estate | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 6,504 | 3,745 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 3,608,116 | 3,407,289 |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,865,882 | 1,849,869 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,865,882 | 1,849,869 |
Agriculture | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 25,478 | 12,232 |
Agriculture | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,453 | (26) |
Agriculture | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 3,181 | 709 |
Agriculture | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 20,844 | 11,549 |
Agriculture | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,840,404 | 1,837,637 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,426,960 | 1,173,910 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,426,960 | 1,173,910 |
Commercial non-real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 11,180 | 16,697 |
Commercial non-real estate | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 2,485 | 1,588 |
Commercial non-real estate | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 115 | 5,515 |
Commercial non-real estate | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 8,580 | 9,594 |
Commercial non-real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,415,780 | 1,157,213 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 865,034 | 934,980 |
Loans covered by FDIC loss sharing agreements | 57,537 | 73,272 |
Total | 922,571 | 1,008,252 |
Residential real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 2,455 | 3,439 |
Residential real estate | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,428 | 828 |
Residential real estate | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 76 | 548 |
Residential real estate | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 951 | 2,063 |
Residential real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 862,579 | 931,541 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 66,166 | 75,592 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 66,166 | 75,592 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 113 | 257 |
Consumer | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 71 | 209 |
Consumer | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 24 | 20 |
Consumer | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 18 | 28 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 66,053 | 75,335 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 43,207 | 42,477 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 43,207 | 42,477 |
Other | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Other | Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Other | Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Other | Past Due | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 0 | 0 |
Other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | $ 43,207 | $ 42,477 |
Loans - Impaired Financing Rece
Loans - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
With an allowance recorded: | |||
Recorded Investment | $ 123,445 | $ 142,619 | |
Unpaid Principal Balance | 148,077 | 155,753 | |
Related Allowance | 22,535 | 25,686 | |
With no allowance recorded: | |||
Recorded Investment | 84,478 | 73,810 | |
Unpaid Principal Balance | 183,341 | 78,855 | |
Total Recorded Investment, Impaired Loans | 207,923 | 216,429 | |
Total Unpaid Principal Balance, Impaired Loans | 331,418 | 234,608 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 224,131 | 227,992 | $ 174,842 |
Interest Income Recognized while on Impaired Status | 9,651 | 12,980 | 9,604 |
Commercial real estate | |||
With an allowance recorded: | |||
Recorded Investment | 20,819 | 29,965 | |
Unpaid Principal Balance | 24,893 | 32,349 | |
Related Allowance | 3,621 | 3,846 | |
With no allowance recorded: | |||
Recorded Investment | 16,652 | 24,040 | |
Unpaid Principal Balance | 69,677 | 24,660 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 42,347 | 70,266 | 69,918 |
Interest Income Recognized while on Impaired Status | 2,163 | 3,876 | 3,936 |
Agriculture | |||
With an allowance recorded: | |||
Recorded Investment | 79,219 | 71,501 | |
Unpaid Principal Balance | 88,268 | 80,842 | |
Related Allowance | 11,468 | 12,278 | |
With no allowance recorded: | |||
Recorded Investment | 51,256 | 30,339 | |
Unpaid Principal Balance | 64,177 | 31,907 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 131,026 | 100,052 | 42,599 |
Interest Income Recognized while on Impaired Status | 5,503 | 6,502 | 1,953 |
Commercial non-real estate | |||
With an allowance recorded: | |||
Recorded Investment | 17,950 | 34,526 | |
Unpaid Principal Balance | 28,755 | 35,283 | |
Related Allowance | 4,779 | 6,475 | |
With no allowance recorded: | |||
Recorded Investment | 13,983 | 15,299 | |
Unpaid Principal Balance | 38,924 | 16,469 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 41,489 | 45,592 | 49,561 |
Interest Income Recognized while on Impaired Status | 1,485 | 1,971 | 3,092 |
Residential real estate | |||
With an allowance recorded: | |||
Recorded Investment | 5,177 | 6,244 | |
Unpaid Principal Balance | 5,874 | 6,886 | |
Related Allowance | 2,581 | 3,000 | |
With no allowance recorded: | |||
Recorded Investment | 2,574 | 4,120 | |
Unpaid Principal Balance | 9,613 | 5,807 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 8,900 | 11,773 | 12,523 |
Interest Income Recognized while on Impaired Status | 453 | 576 | 588 |
Consumer | |||
With an allowance recorded: | |||
Recorded Investment | 280 | 383 | |
Unpaid Principal Balance | 287 | 393 | |
Related Allowance | 86 | 87 | |
With no allowance recorded: | |||
Recorded Investment | 13 | 12 | |
Unpaid Principal Balance | 950 | 12 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 369 | 309 | 241 |
Interest Income Recognized while on Impaired Status | $ 47 | $ 55 | $ 35 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings on Accruing and Nonaccrual Financing Receivables (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |
Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 32,490 | $ 46,568 | |
Financing receivable, modifications, number of contracts | contract | 26 | 38 | 28 |
Financing receivable, modifications, pre-modification recorded investment | $ 24,689 | $ 46,393 | $ 46,783 |
Financing receivable, modifications, post-modification recorded investment | $ 24,689 | $ 46,393 | $ 46,783 |
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 |
Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 71,334 | $ 36,778 | |
Financing receivable, modifications, number of contracts | contract | 26 | 12 | 22 |
Financing receivable, modifications, pre-modification recorded investment | $ 24,139 | $ 2,150 | $ 2,681 |
Financing receivable, modifications, post-modification recorded investment | $ 24,139 | $ 2,103 | $ 2,536 |
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 | 7 | 5 |
Change in recorded investment due to chargeoffs at time of modification, pre-modification | $ 0 | $ 47 | $ 145 |
Change in recorded investment due to chargeoffs at time of modification, post-modification | 0 | 0 | $ 0 |
Commercial real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 1,121 | $ 18,250 | |
Financing receivable, modifications, number of contracts | contract | 2 | 5 | 7 |
Financing receivable, modifications, pre-modification recorded investment | $ 3,726 | $ 8,611 | $ 22,709 |
Financing receivable, modifications, post-modification recorded investment | $ 3,726 | $ 8,611 | $ 22,709 |
Commercial real estate | Accruing | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Commercial real estate | Accruing | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 2 | 2 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 3,726 | $ 1,897 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 3,726 | $ 1,897 | $ 0 |
Commercial real estate | Accruing | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 6 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 22,232 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 22,232 |
Commercial real estate | Accruing | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 477 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 477 |
Commercial real estate | Accruing | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 3 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 6,714 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 0 | 6,714 | $ 0 |
Commercial real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 5,351 | $ 2,356 | |
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 4 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 1,822 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 1,822 |
Commercial real estate | Nonaccrual | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Commercial real estate | Nonaccrual | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 740 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 740 |
Commercial real estate | Nonaccrual | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 1,082 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 1,082 |
Commercial real estate | Nonaccrual | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Commercial real estate | Nonaccrual | Other | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Agriculture | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 22,678 | $ 19,823 | |
Financing receivable, modifications, number of contracts | contract | 13 | 20 | 9 |
Financing receivable, modifications, pre-modification recorded investment | $ 18,902 | $ 28,123 | $ 19,961 |
Financing receivable, modifications, post-modification recorded investment | $ 18,902 | $ 28,123 | $ 19,961 |
Agriculture | Accruing | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Agriculture | Accruing | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 9 | 16 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 18,072 | $ 27,134 | $ 1,410 |
Financing receivable, modifications, post-modification recorded investment | $ 18,072 | $ 27,134 | $ 1,410 |
Agriculture | Accruing | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 4 | 7 |
Financing receivable, modifications, pre-modification recorded investment | $ 102 | $ 989 | $ 18,551 |
Financing receivable, modifications, post-modification recorded investment | $ 102 | $ 989 | $ 18,551 |
Agriculture | Accruing | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Agriculture | Accruing | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 3 | 0 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 728 | $ 0 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 728 | 0 | $ 0 |
Agriculture | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 59,633 | $ 28,688 | |
Financing receivable, modifications, number of contracts | contract | 18 | 6 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 20,197 | $ 1,128 | $ 229 |
Financing receivable, modifications, post-modification recorded investment | $ 20,197 | $ 1,082 | $ 229 |
Agriculture | Nonaccrual | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Agriculture | Nonaccrual | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 12 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 19,062 | $ 101 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 19,062 | $ 100 | $ 0 |
Agriculture | Nonaccrual | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 4 | 4 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 565 | $ 932 | $ 229 |
Financing receivable, modifications, post-modification recorded investment | $ 565 | $ 887 | $ 229 |
Agriculture | Nonaccrual | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Agriculture | Nonaccrual | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 2 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 570 | $ 95 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 570 | 95 | $ 0 |
Commercial non-real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 8,369 | $ 8,102 | |
Financing receivable, modifications, number of contracts | contract | 9 | 12 | 6 |
Financing receivable, modifications, pre-modification recorded investment | $ 2,044 | $ 9,617 | $ 4,005 |
Financing receivable, modifications, post-modification recorded investment | $ 2,044 | $ 9,617 | $ 4,005 |
Commercial non-real estate | Accruing | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 49 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 49 | $ 0 |
Commercial non-real estate | Accruing | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 2 | 5 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 613 | $ 120 | $ 2,296 |
Financing receivable, modifications, post-modification recorded investment | $ 613 | $ 120 | $ 2,296 |
Commercial non-real estate | Accruing | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 6 | 2 | 4 |
Financing receivable, modifications, pre-modification recorded investment | $ 1,281 | $ 948 | $ 1,709 |
Financing receivable, modifications, post-modification recorded investment | $ 1,281 | $ 948 | $ 1,709 |
Commercial non-real estate | Accruing | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Commercial non-real estate | Accruing | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 4 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 150 | $ 8,500 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 150 | 8,500 | $ 0 |
Commercial non-real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 5,641 | $ 4,789 | |
Financing receivable, modifications, number of contracts | contract | 3 | 2 | 8 |
Financing receivable, modifications, pre-modification recorded investment | $ 3,788 | $ 760 | $ 311 |
Financing receivable, modifications, post-modification recorded investment | $ 3,788 | $ 760 | $ 183 |
Commercial non-real estate | Nonaccrual | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 32 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 0 |
Commercial non-real estate | Nonaccrual | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 2 | 0 | 5 |
Financing receivable, modifications, pre-modification recorded investment | $ 2,389 | $ 0 | $ 257 |
Financing receivable, modifications, post-modification recorded investment | $ 2,389 | $ 0 | $ 180 |
Commercial non-real estate | Nonaccrual | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 2 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 1,399 | $ 760 | $ 22 |
Financing receivable, modifications, post-modification recorded investment | $ 1,399 | $ 760 | $ 3 |
Commercial non-real estate | Nonaccrual | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Commercial non-real estate | Nonaccrual | Other | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Residential real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 311 | $ 370 | |
Financing receivable, modifications, number of contracts | contract | 1 | 1 | 4 |
Financing receivable, modifications, pre-modification recorded investment | $ 9 | $ 42 | $ 85 |
Financing receivable, modifications, post-modification recorded investment | $ 9 | $ 42 | $ 85 |
Residential real estate | Accruing | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 13 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 13 |
Residential real estate | Accruing | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 1 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 42 | $ 53 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 42 | $ 53 |
Residential real estate | Accruing | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 0 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 9 | $ 0 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 9 | $ 0 | $ 0 |
Residential real estate | Accruing | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 19 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 19 |
Residential real estate | Accruing | Other | |||
Financing Receivable, Modifications [Line Items] | |||
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 |
Residential real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 688 | $ 937 | |
Financing receivable, modifications, number of contracts | contract | 2 | 3 | 7 |
Financing receivable, modifications, pre-modification recorded investment | $ 133 | $ 254 | $ 318 |
Financing receivable, modifications, post-modification recorded investment | $ 133 | $ 253 | $ 302 |
Residential real estate | Nonaccrual | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 67 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 67 |
Residential real estate | Nonaccrual | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 3 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 169 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 169 |
Residential real estate | Nonaccrual | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 3 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 21 | $ 254 | $ 19 |
Financing receivable, modifications, post-modification recorded investment | $ 21 | $ 253 | $ 19 |
Residential real estate | Nonaccrual | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 112 | $ 0 | $ 39 |
Financing receivable, modifications, post-modification recorded investment | $ 112 | $ 0 | $ 39 |
Residential real estate | Nonaccrual | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 24 |
Financing receivable, modifications, post-modification recorded investment | 0 | 0 | $ 8 |
Consumer | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 11 | $ 23 | |
Financing receivable, modifications, number of contracts | contract | 1 | 0 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 8 | $ 0 | $ 23 |
Financing receivable, modifications, post-modification recorded investment | $ 8 | $ 0 | $ 23 |
Consumer | Accruing | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 | Accruing | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
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 | Accruing | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 0 | $ 17 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | $ 17 |
Consumer | Accruing | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 1 | 0 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 8 | $ 0 | $ 6 |
Financing receivable, modifications, post-modification recorded investment | $ 8 | $ 0 | $ 6 |
Consumer | Accruing | Other | |||
Financing Receivable, Modifications [Line Items] | |||
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 | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 21 | $ 8 | |
Financing receivable, modifications, number of contracts | contract | 3 | 1 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 21 | $ 8 | $ 1 |
Financing receivable, modifications, post-modification recorded investment | $ 21 | $ 8 | $ 0 |
Consumer | Nonaccrual | Rate modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 | Nonaccrual | Term extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 3 | 0 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 21 | $ 0 | $ 1 |
Financing receivable, modifications, post-modification recorded investment | $ 21 | $ 0 | $ 0 |
Consumer | Nonaccrual | Payment modification | |||
Financing Receivable, Modifications [Line Items] | |||
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 | Nonaccrual | Bankruptcy | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, modifications, number of contracts | contract | 0 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 8 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 8 | $ 0 |
Consumer | Nonaccrual | Other | |||
Financing Receivable, Modifications [Line Items] | |||
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 - Subsequent Defaults on
Loans - Subsequent Defaults on Modified Loans (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 3 | 6 | 5 |
Recorded Investment | $ | $ 8,383 | $ 7,590 | $ 8 |
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Agriculture | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 2 | 2 | 0 |
Recorded Investment | $ | $ 8,383 | $ 7,307 | $ 0 |
Commercial non-real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 1 | 2 | 2 |
Recorded Investment | $ | $ 0 | $ 275 | $ 0 |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 8 |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 1 | 2 |
Recorded Investment | $ | $ 0 | $ 8 | $ 0 |
Allowance for Loan and Lease 83
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | $ 64,642 | $ 57,200 | $ 47,518 |
Charge-offs | (25,880) | (14,166) | (15,714) |
Recoveries | 3,202 | 4,653 | 6,355 |
Provision | 22,210 | 18,011 | 19,718 |
Allowance for loan losses, ending balance | 63,503 | 64,642 | 57,200 |
Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 1,679 | ||
(Improvement) impairment of ASC 310-30 loans | (671) | (1,056) | (677) |
Allowance for loan losses, ending balance | 993 | 1,679 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 17,946 | 18,014 | 16,884 |
Charge-offs | (2,043) | (3,625) | (1,971) |
Recoveries | 485 | 719 | 1,339 |
Provision | 643 | 3,148 | 1,325 |
Allowance for loan losses, ending balance | 16,941 | 17,946 | 18,014 |
Commercial real estate | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 772 | ||
(Improvement) impairment of ASC 310-30 loans | (90) | (310) | 437 |
Allowance for loan losses, ending balance | 682 | 772 | |
Agriculture | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 25,115 | 13,952 | 10,655 |
Charge-offs | (7,853) | (4,294) | (606) |
Recoveries | 415 | 556 | 131 |
Provision | 7,965 | 14,901 | 3,772 |
Allowance for loan losses, ending balance | 25,757 | 25,115 | 13,952 |
Agriculture | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 0 | ||
(Improvement) impairment of ASC 310-30 loans | 115 | 0 | 0 |
Allowance for loan losses, ending balance | 115 | 0 | |
Commercial non-real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 12,990 | 15,996 | 10,550 |
Charge-offs | (12,576) | (2,629) | (11,153) |
Recoveries | 652 | 1,429 | 3,407 |
Provision | 13,048 | (1,736) | 13,122 |
Allowance for loan losses, ending balance | 14,114 | 12,990 | 15,996 |
Commercial non-real estate | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 0 | ||
(Improvement) impairment of ASC 310-30 loans | 0 | (70) | 70 |
Allowance for loan losses, ending balance | 0 | 0 | |
Residential real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 7,106 | 8,025 | 8,342 |
Charge-offs | (809) | (1,157) | (238) |
Recoveries | 507 | 495 | 231 |
Provision | (761) | 419 | 849 |
Allowance for loan losses, ending balance | 5,347 | 7,106 | 8,025 |
Residential real estate | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 907 | ||
(Improvement) impairment of ASC 310-30 loans | (696) | (676) | (1,159) |
Allowance for loan losses, ending balance | 196 | 907 | |
Consumer | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 438 | 348 | 264 |
Charge-offs | (196) | (206) | (129) |
Recoveries | 102 | 149 | 104 |
Provision | (15) | 147 | 134 |
Allowance for loan losses, ending balance | 329 | 438 | 348 |
Consumer | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 0 | ||
(Improvement) impairment of ASC 310-30 loans | 0 | 0 | (25) |
Allowance for loan losses, ending balance | 0 | 0 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 1,047 | 865 | 823 |
Charge-offs | (2,403) | (2,255) | (1,617) |
Recoveries | 1,041 | 1,305 | 1,143 |
Provision | 1,330 | 1,132 | 516 |
Allowance for loan losses, ending balance | 1,015 | 1,047 | 865 |
Other | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 0 | ||
(Improvement) impairment of ASC 310-30 loans | 0 | 0 | $ 0 |
Allowance for loan losses, ending balance | $ 0 | $ 0 |
Allowance for Loan and Lease 84
Allowance for Loan and Lease Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and written loan commitments at fair value under the fair value option | $ 1,016,576 | $ 1,131,111 | ||
Loans held for sale | 7,456 | 12,918 | ||
Guaranteed loans | 7,787,016 | 7,431,936 | ||
Allowance for loan losses | 63,503 | 64,642 | $ 57,200 | $ 47,518 |
Unfunded loan commitment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reserve for unfunded loan commitments | 500 | 500 | ||
Receivables acquired with deteriorated credit quality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Guaranteed loans | 92,595 | 129,531 | ||
Allowance for loan losses | 993 | 1,679 | ||
(Improvement) impairment of ASC 310-30 loans | 671 | 1,056 | $ 677 | |
Loans Guaranteed by US Government Authorities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Guaranteed loans | $ 168,300 | $ 120,000 |
Allowance for Loan and Lease 85
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 22,535 | $ 25,686 | ||
Collectively evaluated for impairment | 39,975 | 37,277 | ||
Total allowance | 63,503 | 64,642 | $ 57,200 | $ 47,518 |
Financing Receivables | ||||
Individually evaluated for impairment | 207,923 | 216,429 | ||
Collectively evaluated for impairment | 7,486,498 | 7,085,976 | ||
Loans Outstanding | 7,787,016 | 7,431,936 | ||
Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 993 | 1,679 | ||
Financing Receivables | ||||
Loans Outstanding | 92,595 | 129,531 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 3,621 | 3,846 | ||
Collectively evaluated for impairment | 12,638 | 13,328 | ||
Total allowance | 16,941 | 17,946 | 18,014 | 16,884 |
Financing Receivables | ||||
Individually evaluated for impairment | 37,471 | 54,005 | ||
Collectively evaluated for impairment | 3,487,232 | 3,249,974 | ||
Loans Outstanding | 3,554,802 | 3,348,427 | ||
Commercial real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 682 | 772 | ||
Financing Receivables | ||||
Loans Outstanding | 30,099 | 44,448 | ||
Agriculture | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 11,468 | 12,278 | ||
Collectively evaluated for impairment | 14,174 | 12,837 | ||
Total allowance | 25,757 | 25,115 | 13,952 | 10,655 |
Financing Receivables | ||||
Individually evaluated for impairment | 130,475 | 101,840 | ||
Collectively evaluated for impairment | 1,702,634 | 1,721,219 | ||
Loans Outstanding | 1,840,283 | 1,838,313 | ||
Agriculture | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 115 | 0 | ||
Financing Receivables | ||||
Loans Outstanding | 7,174 | 15,254 | ||
Commercial non-real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 4,779 | 6,475 | ||
Collectively evaluated for impairment | 9,335 | 6,515 | ||
Total allowance | 14,114 | 12,990 | 15,996 | 10,550 |
Financing Receivables | ||||
Individually evaluated for impairment | 31,933 | 49,825 | ||
Collectively evaluated for impairment | 1,333,888 | 1,079,295 | ||
Loans Outstanding | 1,367,741 | 1,132,316 | ||
Commercial non-real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 0 | 0 | ||
Financing Receivables | ||||
Loans Outstanding | 1,920 | 3,196 | ||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 2,581 | 3,000 | ||
Collectively evaluated for impairment | 2,570 | 3,199 | ||
Total allowance | 5,347 | 7,106 | 8,025 | 8,342 |
Financing Receivables | ||||
Individually evaluated for impairment | 7,751 | 10,364 | ||
Collectively evaluated for impairment | 854,330 | 918,710 | ||
Loans Outstanding | 914,817 | 994,811 | ||
Residential real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 196 | 907 | ||
Financing Receivables | ||||
Loans Outstanding | 52,736 | 65,737 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 86 | 87 | ||
Collectively evaluated for impairment | 243 | 351 | ||
Total allowance | 329 | 438 | 348 | 264 |
Financing Receivables | ||||
Individually evaluated for impairment | 293 | 395 | ||
Collectively evaluated for impairment | 65,207 | 74,301 | ||
Loans Outstanding | 66,166 | 75,592 | ||
Consumer | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 0 | 0 | ||
Financing Receivables | ||||
Loans Outstanding | 666 | 896 | ||
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,015 | 1,047 | ||
Total allowance | 1,015 | 1,047 | $ 865 | $ 823 |
Financing Receivables | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 43,207 | 42,477 | ||
Loans Outstanding | 43,207 | 42,477 | ||
Other | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 0 | 0 | ||
Financing Receivables | ||||
Loans Outstanding | $ 0 | $ 0 |
Accounting for Certain Loans 86
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 38,124 | $ 44,489 | $ 50,889 |
Acquisition | 0 | 3,662 | 0 |
Accretion | (13,847) | (9,971) | (13,645) |
Reclassification from (to) nonaccretable difference | 19,854 | (56) | 8,363 |
Disposals | 0 | 0 | (1,118) |
Balance at end of period | $ 44,131 | $ 38,124 | $ 44,489 |
Accounting for Certain Loans 87
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | $ 193,864 | $ 238,106 |
Recorded Investment | 92,595 | 129,531 |
Carrying Value | 91,602 | 127,852 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 110,797 | 129,615 |
Recorded Investment | 30,099 | 44,448 |
Carrying Value | 29,417 | 43,676 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 10,463 | 19,174 |
Recorded Investment | 7,174 | 15,254 |
Carrying Value | 7,059 | 15,254 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 9,825 | 11,588 |
Recorded Investment | 1,920 | 3,196 |
Carrying Value | 1,920 | 3,196 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 61,981 | 76,696 |
Recorded Investment | 52,736 | 65,737 |
Carrying Value | 52,540 | 64,830 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 798 | 1,033 |
Recorded Investment | 666 | 896 |
Carrying Value | $ 666 | $ 896 |
FDIC Indemnification Asset - Sc
FDIC Indemnification Asset - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
FDIC Indemnification Asset [Roll Forward] | |||
Balance at beginning of year | $ 10,777 | $ 14,722 | $ 26,678 |
Amortization | (4,748) | (3,836) | (7,552) |
Changes in expected reimbursements from FDIC for changes in expected credit losses | (45) | (278) | (305) |
Changes in reimbursable expenses | (986) | (791) | (1,972) |
Payments (reimbursements) of covered losses from the FDIC | 706 | 960 | (2,127) |
Balance at end of year | $ 5,704 | $ 10,777 | $ 14,722 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 142,333 | $ 149,262 |
Accumulated depreciation | (30,124) | (30,756) |
Premise and equipment, net | 112,209 | 118,506 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,973 | 26,591 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 89,927 | 94,306 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 26,160 | 27,597 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 273 | $ 768 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 7,600 | $ 7,500 | $ 8,500 |
Property held for sale | $ 5,147 | $ 8,112 |
Derivative Financial Instrume91
Derivative Financial Instruments - Notional Amounts and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Derivative [Line Items] | ||
Positive Fair Value | $ 1,850 | $ 525 |
Negative Fair Value | (19,005) | (81,974) |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 1,061,545 | 1,055,822 |
Positive Fair Value | 1,850 | 525 |
Negative Fair Value | (19,005) | (81,974) |
Derivatives Not Designated as Hedging Instruments | Mortgage loan commitments | Assets | ||
Derivative [Line Items] | ||
Notional Amount | 37,765 | 52,333 |
Positive Fair Value | 0 | 66 |
Negative Fair Value | (48) | 0 |
Derivatives Not Designated as Hedging Instruments | Mortgage loan forward sale contracts | Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 43,628 | 60,529 |
Positive Fair Value | 48 | 0 |
Negative Fair Value | $ 0 | $ (66) |
Derivative Financial Instrume92
Derivative Financial Instruments - Effect on the Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | |||
Termination value of net liability position | $ 20,300 | $ 84,400 | |
Collateral posted | 25,000 | 106,100 | |
Cash collateral pledged | 4,600 | 0 | |
Noninterest income | Interest rate swaps | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | 49,900 | (48,658) | $ (62,088) |
Noninterest income | Mortgage loan commitments | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | (48) | 66 | 95 |
Noninterest income | Mortgage loan forward sale contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | $ 48 | $ (66) | $ (95) |
Derivative Financial Instrume93
Derivative Financial Instruments - Offsetting Liabilities and Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative financial assets, gross amount | $ 1,850 | $ 525 |
Derivative financial liabilities, gross amount | (19,005) | (81,974) |
Derivative financial assets (liabilities), gross amount | (17,155) | (81,449) |
Derivative financial assets, amount offset | (1,850) | (525) |
Derivative financial liabilities, amount offset | 1,850 | 525 |
Derivative financial assets (liabilities), Net, amount offset | 0 | 0 |
Derivative financial assets, net amount presented in Consolidated Balance Sheets | 0 | 0 |
Derivative financial liabilities, net amount presented in Consolidated Balance Sheets | (17,155) | (81,449) |
Derivative financial assets (liabilities), net amount presented in Consolidated Balance Sheets | (17,155) | (81,449) |
Derivative financial assets, Held/pledged financial instruments | 0 | 0 |
Derivative financial liabilities, Held/pledged financial instruments | 17,155 | 81,449 |
Derivative liabilities (assets), Net, Held/pledged financial instruments | 17,155 | 81,449 |
Derivative financial asset, net amount | 0 | 0 |
Derivative financial liabilities, net amount | 0 | 0 |
Derivative financial assets (liabilities), net, amount offset against collateral | $ 0 | $ 0 |
The Fair Value Option For Cer94
The Fair Value Option For Certain Loans - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Eligible item for the fair value option | $ 8.8 | $ 74.1 | |
Loans greater than 90 days past due or in nonaccrual status | 14.7 | 9.4 | |
Loans greater than 90 days past due or in nonaccrual status, unpaid principal balance | 17 | 10.8 | |
Long-term loans and written loan commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Eligible item for the fair value option | 0.9 | 1.6 | $ 0.2 |
Fair value, option, aggregate differences, long-term debt instruments | $ 1,010 | $ 1,060 |
The Fair Value Option For Cer95
The Fair Value Option For Certain Loans - Schedule of Fair Value Option (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net (decrease) increase in fair value of loans at fair value | $ (65,231) | $ 26,314 | $ 36,742 |
Long-term loans and written loan commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net (decrease) increase in fair value of loans at fair value | (65,231) | 26,314 | 36,742 |
Long-term loans and written loan commitments | Noninterest Income / (Loss) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net (decrease) increase in fair value of loans at fair value | $ (65,231) | $ 26,314 | $ 36,742 |
Goodwill - Summary of Changes t
Goodwill - Summary of Changes to the Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill | |||
Balance, beginning of year | $ 739,023,000 | $ 697,807,000 | |
Goodwill acquired during the year | 0 | 41,216,000 | |
Balance, end of year | 739,023,000 | 739,023,000 | $ 697,807,000 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Core Deposits and Other Intan97
Core Deposits and Other Intangibles - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 92,109 | $ 92,109 |
Accumulated amortization | (82,735) | (80,377) |
Net intangible assets | 9,374 | 11,732 |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 67,018 | 67,018 |
Accumulated amortization | (61,258) | (59,842) |
Net intangible assets | 5,760 | 7,176 |
Brand Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,464 | 8,464 |
Accumulated amortization | (5,264) | (4,700) |
Net intangible assets | 3,200 | 3,764 |
Customer Relationships Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 16,089 | 16,089 |
Accumulated amortization | (16,089) | (15,800) |
Net intangible assets | 0 | 289 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 538 | 538 |
Accumulated amortization | (124) | (35) |
Net intangible assets | $ 414 | $ 503 |
Core Deposits and Other Intan98
Core Deposits and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of core deposits and other intangibles | $ 2,358 | $ 3,264 | $ 7,110 |
Core Deposits and Other Intan99
Core Deposits and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 1,662 | |
2,019 | 1,538 | |
2,020 | 1,430 | |
2,021 | 1,334 | |
2,022 | 1,249 | |
2023 and thereafter | 2,161 | |
Net intangible assets | $ 9,374 | $ 11,732 |
Loan Servicing Rights - Schedul
Loan Servicing Rights - Schedule of Loan Servicing Rights Activity and Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loan servicing rights | |||
Beginning of year | $ 5,794 | $ 0 | $ 0 |
Acquired in HF Financial acquisition | 0 | 6,573 | 0 |
Additions | 0 | 0 | 0 |
Amortization | (1,639) | (779) | 0 |
End of year | 4,155 | 5,794 | 0 |
Valuation allowance | |||
Beginning of year | (13) | 0 | 0 |
Additions / (reductions) | (68) | (13) | 0 |
End of year | (81) | (13) | 0 |
Loan servicing rights, net | 4,074 | 5,781 | 0 |
Servicing fees received | 2,033 | 930 | 0 |
Balance of loans serviced at: | |||
Beginning of year | 868,865 | 0 | 0 |
End of year | $ 722,461 | $ 868,865 | $ 0 |
Loan Servicing Rights Loan Serv
Loan Servicing Rights Loan Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Transfers and Servicing [Abstract] | ||||
Constant prepayment rates (as a percent) | 12.50% | |||
Discount rate (as a percent) | 11.90% | |||
Valuation allowance for impairment of recognized servicing assets | $ 81 | $ 13 | $ 0 | $ 0 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Composition of deposits: | ||
Noninterest-bearing demand | $ 1,856,126 | $ 1,880,512 |
NOW accounts, money market and savings | 5,847,432 | 5,343,183 |
Time deposits, $250,000 or more | 273,365 | 265,904 |
Other time deposits | 1,000,690 | 1,115,191 |
Total deposits | 8,977,613 | 8,604,790 |
Brokered deposits | $ 725,400 | $ 641,400 |
Deposits - Summary of Scheduled
Deposits - Summary of Scheduled Maturities of Time Deposits (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Fiscal year maturity: | |
2,018 | $ 768,026 |
2,019 | 273,140 |
2,020 | 126,145 |
2,021 | 60,644 |
2,022 | 44,339 |
2023 and thereafter | 1,761 |
Total | $ 1,274,055 |
Securities Sold Under Agreem104
Securities Sold Under Agreements to Repurchase - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase, amortized cost | $ 139.3 | $ 151.8 |
Securities sold under agreements to repurchase, fair value | $ 137.4 | $ 152.3 |
Percentage of total borrowed funds (as a percent) | 102.00% |
Securities Sold Under Agreem105
Securities Sold Under Agreements to Repurchase - Maturity Schedule of Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | $ 132,636 | $ 141,688 |
Municipal securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 3,626 | 0 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 129,010 | 141,688 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 132,636 | 138,744 |
Overnight and Continuous | Municipal securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 3,626 | 0 |
Overnight and Continuous | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 129,010 | 138,744 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Up to 30 Days | Municipal securities | ||
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 | Municipal securities | ||
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 | 2,944 |
Greater than 90 Days | Municipal securities | ||
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 | $ 2,944 |
FHLB Advances and Other Borr106
FHLB Advances and Other Borrowings - Summary of Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 643,200 | $ 871,000 |
Fair value adjustment | 14 | 37 |
Total FHLB advances and other borrowings | 643,214 | 871,037 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 56,000 | 640,000 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 1.05% | |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.66% | |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 512,200 | 0 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 1.25% | |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 1.27% | |
Federal Home Loan Bank fed funds advance | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.33% | |
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 75,000 | $ 231,000 |
FHLB Advances and Other Borr107
FHLB Advances and Other Borrowings - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 1,550,000,000 | $ 1,090,000,000 |
Loans pledged to the Federal Home Loan Bank | 3,710,000,000 | 3,110,000,000 |
Revolving line of credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 10,000,000 | |
Unused capacity fee (as a percent) | 0.15% | |
Effective interest rate (as a percent) | 3.24% | |
Outstanding advances | $ 0 | 0 |
Revolving line of credit | FRB Discount Window Loan | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 1,890,000,000 | |
Loans pledged to the Federal Reserve Board Discount Window | $ 2,550,000,000 | $ 0 |
Revolving line of credit | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% |
FHLB Advances and Other Borr108
FHLB Advances and Other Borrowings - Summary of Due or Callable Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 108,302 | $ 111,873 |
FHLB Advances and Other Borrowings | ||
Debt Instrument [Line Items] | ||
2,018 | 543,200 | |
2,019 | 75,000 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2023 and thereafter | 25,000 | |
Total | $ 643,200 |
Subordinated Debentures and 109
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, 2016shares | Sep. 30, 2017USD ($)trust | Sep. 30, 2016USD ($) |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 108,302 | $ 111,873 | ||||||||
Mandatorily Redeemable Preferred Securities | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Number of trusts | trust | 7 | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
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 | |||||||||
Maximum interest payment deferral period | 5 years | |||||||||
Redemption period following the occurrence of a Special Event | 90 days | |||||||||
Redemption price (in dollars per share) | $ 1,000 | |||||||||
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 nonconsolidated trusts | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 73,511 | 77,155 | ||||||||
Common shares held in other assets | $ | $ 2,520 | 2,520 | ||||||||
HFB Capital Trust V | Junior subordinated debentures payable to nonconsolidated trusts | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.83% | |||||||||
Number of shares redeemed (in shares) | shares | 5,000 | |||||||||
Common shares held in other assets | $ | $ 310 | $ 310 |
Subordinated Debentures and 110
Subordinated Debentures and Subordinated Notes Payable - Subordinated Notes Payable (Details) - Subordinated notes payable - USD ($) | 12 Months Ended | 60 Months Ended | |
Sep. 30, 2017 | Aug. 15, 2025 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 35,000,000 | ||
Stated interest rate (as a percent) | 4.875% | ||
Redemption price, percentage of principal (as a percent) | 100.00% | ||
Unamortized debt issuance costs | $ 209,000 | $ 282,000 | |
London Interbank Offered Rate (LIBOR) | Forecast | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.15% |
Subordinated Debentures and 111
Subordinated Debentures and Subordinated Notes Payable - Summary of Subordinated Debentures and Subordinated Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||
Total | $ 108,302 | $ 111,873 |
Junior subordinated debentures payable to nonconsolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount outstanding | 75,920 | 80,920 |
Common Shares Held in Other Assets | 2,520 | 2,520 |
Less: fair value adjustment | (2,409) | (3,765) |
Total | $ 73,511 | 77,155 |
Subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.875% | |
Unamortized debt issuance costs | $ (209) | (282) |
Total | 34,791 | 34,718 |
GW Statutory Trust IV | Junior subordinated debentures payable to nonconsolidated 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% | |
GW Statutory Trust VI | Junior subordinated debentures payable to nonconsolidated 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% | |
SSB Trust II | Junior subordinated debentures payable to nonconsolidated 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% | |
HFB Capital Trust III | Junior subordinated debentures payable to nonconsolidated 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% | |
HFB Capital Trust IV | Junior subordinated debentures payable to nonconsolidated 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% | |
HFB Capital Trust V | Junior subordinated debentures payable to nonconsolidated trusts | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 5,310 | 10,310 |
Common Shares Held in Other Assets | $ 310 | 310 |
Basis spread on variable rate (as a percent) | 1.83% | |
HFB Capital Trust VI | Junior subordinated debentures payable to nonconsolidated 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% | |
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) | 4.875% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Currently paid or payable | |||
Federal | $ 56,171 | $ 51,749 | $ 38,105 |
State | 10,639 | 8,677 | 7,342 |
Current income tax expense (benefit) | 66,810 | 60,426 | 45,447 |
Deferred tax (benefit) expense | |||
Federal | 2,477 | (1,513) | 6,688 |
State | 154 | (50) | 352 |
Total | 2,631 | (1,563) | 7,040 |
Total provision for income taxes | $ 69,441 | $ 58,863 | $ 52,487 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax percentage (as a percent) | 35.00% | 35.00% | 35.00% |
Income tax expense computed at the statutory rate | $ 74,979 | $ 63,041 | $ 56,543 |
State income taxes, net of federal benefit | 7,015 | 5,608 | 4,772 |
Tax exempt interest income | (7,973) | (7,534) | (6,560) |
Tax benefit of stock-based compensation plans | (2,153) | 0 | 0 |
Other | (2,427) | (2,252) | (2,268) |
Total provision for income taxes | $ 69,441 | $ 58,863 | $ 52,487 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 23,730 | $ 24,016 |
Compensation | 6,227 | 6,306 |
Net operating loss carryforward | 0 | 17 |
Securities available for sale | 3,413 | 0 |
Other real estate owned | 763 | 1,231 |
Core deposit intangible and other fair value adjustments | 6,058 | 7,303 |
Excess tax basis of FDIC indemnification asset and clawback liability | 4,563 | 2,514 |
Excess tax basis of loans acquired over carrying value | 9,417 | 12,896 |
Other reserves | 4,406 | 2,989 |
Other | 6,922 | 4,580 |
Total deferred tax assets | 65,499 | 61,852 |
Deferred tax liabilities: | ||
Goodwill and other intangibles | (13,784) | (11,555) |
Securities available for sale | 0 | (3,398) |
Premises and equipment | (8,828) | (7,758) |
Other | (487) | (795) |
Total deferred tax liabilities | (23,099) | (23,506) |
Net deferred tax assets | $ 42,400 | $ 38,346 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
HF Financial Corp | ||
Income Tax Contingency [Line Items] | ||
Unrecaptured tax bad debt reserve | $ 4.8 | |
Unrecorded deferred income tax liability for financial statement purposes | 1.8 | |
National Americas Investment, Inc | ||
Income Tax Contingency [Line Items] | ||
Income tax payable | $ 1.6 | |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
Income taxes receivable | $ 4.6 | $ 0.2 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)year | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Pension Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets (as a percent) | 8.00% | 8.00% | 0.00% |
Total pension plan assets | $ 3,093 | $ 3,359 | $ 0 |
Pension liability | 2,300 | ||
Accumulated benefit obligation | $ 5,372 | 6,355 | |
Multiple employer 401(k) profit sharing plan | |||
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 | $ 5,300 | $ 4,700 | $ 4,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Pension Plan Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in plan assets: | |||
Net unrealized holding gain arising during the year | $ 329 | $ 0 | $ 0 |
Pension Plan | |||
Changes in benefit obligations: | |||
Benefit obligations, beginning of year | 6,355 | 0 | |
Acquired in HF Financial acquisition | 0 | 8,642 | |
Service cost | 50 | 21 | 0 |
Interest cost | 223 | 176 | 0 |
Benefits paid | (803) | (2,677) | |
Plan changes | 0 | 0 | |
Assumption changes | (286) | 265 | |
Actuarial loss | (167) | (72) | |
Benefit obligations, end of year | 5,372 | 6,355 | 0 |
Changes in plan assets: | |||
Fair value of plan assets, beginning of year | 3,359 | 0 | |
Acquired in HF Financial acquisition | 0 | 5,642 | |
Actual return on plan assets | 277 | 226 | |
Company contributions | 260 | 168 | |
Benefits paid | (803) | (2,677) | |
Fair value of plan assets, end of year | 3,093 | 3,359 | 0 |
Funded Status | (2,279) | (2,996) | |
Net unrealized holding gain arising during the year | 329 | 0 | $ 0 |
Accumulated benefit obligation | $ 5,372 | $ 6,355 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Net gain | $ 329 | $ 0 | $ 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 50 | 21 | 0 |
Interest cost | 223 | 176 | 0 |
Expected return on plan assets | (258) | (190) | 0 |
Amortization of prior losses | 0 | 50 | 0 |
Net periodic benefit cost | 15 | 57 | 0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Net gain | 329 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 314 | $ (57) | $ 0 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used (Details) - Pension Plan | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate - pre-retirement (as a percent) | 3.83% | 3.57% | |
Discount rate - post-retirement (as a percent) | 3.83% | 3.57% | |
Weighted-average assumptions used to determine net periodic benefit costs: | |||
Discount rate - pre-retirement (as a percent) | 3.83% | 3.57% | 0.00% |
Discount rate - post-retirement (as a percent) | 3.83% | 3.57% | 0.00% |
Rate of compensation increase (as a percent) | 4.00% | 4.00% | 0.00% |
Expected long-term return on plan assets (as a percent) | 8.00% | 8.00% | 0.00% |
Employee Benefit Plans - Target
Employee Benefit Plans - Target Plan Asset Allocations (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 3,093 | $ 3,359 | $ 0 |
Actual Asset Mix as a % of Market Value | 100.00% | 100.00% | |
Target Asset Mix as a % of Market Value | 100.00% | 100.00% | |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 0 | $ 2,200 | |
Actual Asset Mix as a % of Market Value | 0.00% | 65.50% | |
Target Asset Mix as a % of Market Value | 55.00% | 55.00% | |
Target plan asset allocation margin (as a percent) | 10.00% | 10.00% | |
Fixed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 0 | $ 1,130 | |
Actual Asset Mix as a % of Market Value | 0.00% | 33.63% | |
Target Asset Mix as a % of Market Value | 30.00% | 30.00% | |
Target plan asset allocation margin (as a percent) | 5.00% | 5.00% | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 0 | $ 0 | |
Actual Asset Mix as a % of Market Value | 0.00% | 0.00% | |
Target Asset Mix as a % of Market Value | 10.00% | 10.00% | |
Target plan asset allocation margin (as a percent) | 10.00% | 10.00% | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 3,093 | $ 29 | |
Actual Asset Mix as a % of Market Value | 100.00% | 0.87% | |
Target Asset Mix as a % of Market Value | 5.00% | 5.00% | |
Target plan asset allocation margin (as a percent) | 5.00% | 5.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 3,093 | $ 3,359 | $ 0 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 3,093 | 3,359 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 3,093 | 29 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 3,093 | 29 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Domestic fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 1,499 | |
Domestic fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 1,499 | |
Domestic fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Domestic fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 551 | |
International fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 551 | |
International fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Emerging markets fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 150 | |
Emerging markets fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 150 | |
Emerging markets fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Emerging markets fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International fixed income fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 310 | |
International fixed income fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 310 | |
International fixed income fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International fixed income fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Taxable fixed income fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 820 | |
Taxable fixed income fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 820 | |
Taxable fixed income fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Taxable fixed income fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefit Payments (Details) - Pension Plan $ in Thousands | Sep. 30, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 5,400 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Total | $ 5,400 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, award vesting period | 3 years | ||
Share-based compensation expense | $ 6.5 | $ 3.5 | $ 1.2 |
Tax benefit from compensation expense | 2.5 | $ 1.3 | $ 0.5 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, compensation cost not yet recognized | $ 4.9 | ||
Share-based compensation, compensation cost not yet recognized, recognition period | 2 years 2 months 1 day | ||
Share-based compensation, fair value of vested awards | $ 1.2 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted and Performance Stock (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, beginning balance (shares) | 160,335 | 80,446 |
Granted (shares) | 90,363 | 113,543 |
Vested and issued (shares) | (68,293) | (25,729) |
Forfeited (shares) | (2,068) | (7,925) |
Canceled (shares) | 0 | 0 |
Shares, ending balance (shares) | 180,337 | 160,335 |
Vested, but not issuable (shares) | 29,287 | 24,480 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares, beginning balance (in USD per share) | $ 26.89 | $ 18.18 |
Granted (in USD per share) | 39.35 | 30.95 |
Vested and issued (in USD per share) | 26.97 | 18.11 |
Forfeited (in USD per share) | 30.91 | 25.09 |
Canceled (in USD per share) | 0 | 0 |
Shares, ending balance (in USD per share) | 33.06 | 26.89 |
Vested, but not issuable (in USD per share) | $ 30.05 | $ 26.14 |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, beginning balance (shares) | 236,185 | 211,026 |
Granted (shares) | 137,612 | 43,371 |
Vested and issued (shares) | (235,055) | (55) |
Forfeited (shares) | (5,138) | (18,157) |
Canceled (shares) | 0 | 0 |
Shares, ending balance (shares) | 133,604 | 236,185 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares, beginning balance (in USD per share) | $ 20.28 | $ 18 |
Granted (in USD per share) | 39.43 | 30.78 |
Vested and issued (in USD per share) | 18 | 18 |
Forfeited (in USD per share) | 19.80 | 18.83 |
Canceled (in USD per share) | 0 | 0 |
Shares, ending balance (in USD per share) | $ 33.39 | $ 20.28 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Great Western Bancorp, Inc. | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,101,899 | $ 1,001,873 |
Actual, Percentage | 11.40% | 11.10% |
For Capital Adequacy Purposes, Amount | $ 579,947 | $ 541,553 |
For Capital Adequacy Purposes, Percentage | 6.00% | 6.00% |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,200,885 | $ 1,101,997 |
Actual, Percentage | 12.50% | 12.20% |
For Capital Adequacy Purposes, Amount | $ 768,566 | $ 722,621 |
For Capital Adequacy Purposes, Percentage | 8.00% | 8.00% |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,101,899 | $ 1,001,873 |
Actual, Percentage | 10.30% | 9.50% |
For Capital Adequacy Purposes, Actual | $ 427,922 | $ 421,841 |
For Capital Adequacy Purposes, Percentage | 4.00% | 4.00% |
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,028,389 | $ 924,718 |
Actual, Percentage | 10.70% | 10.20% |
For Capital Adequacy Purposes, Actual | $ 432,500 | $ 407,964 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
Great Western Bank | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,112,466 | $ 1,023,386 |
Actual, Percentage | 11.60% | 11.30% |
For Capital Adequacy Purposes, Amount | $ 575,413 | $ 543,391 |
For Capital Adequacy Purposes, Percentage | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 767,218 | $ 724,521 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 8.00% | 8.00% |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,176,451 | $ 1,088,511 |
Actual, Percentage | 12.20% | 12.00% |
For Capital Adequacy Purposes, Amount | $ 771,443 | $ 725,674 |
For Capital Adequacy Purposes, Percentage | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 964,304 | $ 907,093 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 10.00% | 10.00% |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,112,466 | $ 1,023,386 |
Actual, Percentage | 10.40% | 9.70% |
For Capital Adequacy Purposes, Actual | $ 427,872 | $ 422,015 |
For Capital Adequacy Purposes, Percentage | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 534,839 | $ 527,519 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 5.00% | 5.00% |
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,112,466 | $ 1,023,386 |
Actual, Percentage | 11.60% | 11.30% |
For Capital Adequacy Purposes, Actual | $ 431,560 | $ 407,543 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 623,365 | $ 588,673 |
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, 2017 | Sep. 30, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans repurchased during period | $ 2,300 | $ 2,600 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | 2,515,653 | 2,158,041 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | $ 70,186 | $ 61,802 |
Commitments and Contingencie127
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 5,400 | $ 5,100 | $ 4,800 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 5,157 | ||
2,019 | 4,523 | ||
2,020 | 3,863 | ||
2,021 | 2,737 | ||
2,022 | 2,157 | ||
2023 and thereafter | 6,629 | ||
Total | $ 25,066 | ||
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 Pa128
Transactions with Related Parties - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Interest on related party notes payable | $ 0 | $ 0 | $ 771 | |
National Australia Bank Limited | Payments under Transitional Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Amount of transactions with related party | 0 | 0 | 200 | |
National Australia Bank Limited | Shares from former parent company | Restricted shares | Salaries and employee benefits | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | 100 | 100 | 100 | |
National Australia Bank Limited | Shares from former parent company | Restricted shares | Accrued expenses and other liabilities | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 100 | 100 | ||
National Australia Bank Limited | Salary and benefit expenses as part of employment agreement | Chief Financial Officer and Chief Risk Officer | ||||
Related Party Transaction [Line Items] | ||||
Amount of transactions with related party | 0 | 0 | 400 | |
National Australia Bank Limited | Apportioned costs from compliance rules implemented | ||||
Related Party Transaction [Line Items] | ||||
Amount of transactions with related party | 0 | 0 | 200 | |
National Australia Bank Limited | Expenses incurred in connection with initial public offering | ||||
Related Party Transaction [Line Items] | ||||
Amount of transactions with related party | 0 | 0 | 900 | |
National Australia Bank Limited | Payments under lease agreement | ||||
Related Party Transaction [Line Items] | ||||
Amount of transactions with related party | $ 0 | $ 0 | $ 100 | |
Chief Executive Officer's son | Sioux Falls Financial Services, LLC | ||||
Related Party Transaction [Line Items] | ||||
Interest owned by related party (as a percent) | 22.50% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,367,960 | $ 1,315,860 |
Fair value of derivatives | 17,107 | 81,515 |
Fair value loans and written loan commitments | 1,016,576 | 1,131,111 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 228,603 | 230,980 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,065,737 | 1,023,319 |
States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 72,586 | 55,484 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 5,022 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,367,960 | 1,315,860 |
Derivatives-assets | 48 | 66 |
Fair value of derivatives | 17,107 | 81,515 |
Fair value loans and written loan commitments | 1,016,576 | 1,131,111 |
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 | 228,603 | 230,980 |
Fair value, measurements, recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,065,737 | 1,023,319 |
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 | 72,586 | 55,484 |
Fair value, measurements, recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 5,022 |
Fair value, measurements, recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,034 | 1,055 |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 228,603 | 230,980 |
Derivatives-assets | 0 | 0 |
Fair value of derivatives | 0 | 0 |
Fair value loans and written loan commitments | 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 | 228,603 | 230,980 |
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 | 0 |
Fair value, measurements, recurring | Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,138,288 | 1,083,565 |
Derivatives-assets | 48 | 66 |
Fair value of derivatives | 17,107 | 81,515 |
Fair value loans and written loan commitments | 1,016,576 | 1,131,111 |
Fair value, measurements, recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,065,737 | 1,023,319 |
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 | 71,517 | 54,169 |
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 | 0 | 5,022 |
Fair value, measurements, recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,034 | 1,055 |
Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,069 | 1,315 |
Derivatives-assets | 0 | 0 |
Fair value of derivatives | 0 | 0 |
Fair value loans and written loan commitments | 0 | 0 |
Fair value, measurements, recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 3 | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,069 | 1,315 |
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 | 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 - Sc130
Fair Value Measurements - Schedule of Other Available-for-Sale (Details) - Available-for-sale securities - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of year | $ 1,315 | $ 1,835 | $ 2,029 |
Additions | 0 | 15 | 0 |
Principal paydown | (246) | (235) | (195) |
Unrealized gain included in other comprehensive income | 0 | 0 | 1 |
Realized loss on securities | 0 | (300) | 0 |
Balance, end of year | $ 1,069 | $ 1,315 | $ 1,835 |
Fair Value Measurements - Mortg
Fair Value Measurements - Mortgage Loans Held for Sale (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other real estate owned | $ 7,728 | $ 6,911 |
Impaired loans | 185,388 | 190,743 |
Loans held for sale, at lower of cost or fair value | 7,456 | 12,918 |
Loan servicing rights | 4,074 | 5,781 |
Property held for sale | 5,147 | 8,112 |
Level 1 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Loan servicing rights | 0 | 0 |
Property held for sale | 0 | 0 |
Level 2 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 7,456 | 12,918 |
Loan servicing rights | 0 | 0 |
Property held for sale | 0 | 0 |
Level 3 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other real estate owned | 7,728 | 6,911 |
Impaired loans | 185,388 | 190,743 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Loan servicing rights | 4,074 | 5,781 |
Property held for sale | $ 5,147 | $ 8,112 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Significant Unobservable Inputs Used for Level 3 Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Property held for sale | $ 5,147 | $ 8,112 |
Fair value, measurements, nonrecurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other real estate owned | 7,728 | 6,911 |
Impaired loans | 185,388 | 190,743 |
Loan servicing rights | 4,074 | 5,781 |
Fair value, measurements, nonrecurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other real estate owned | 7,728 | 6,911 |
Impaired loans | 185,388 | 190,743 |
Loan servicing rights | 4,074 | $ 5,781 |
Property held for sale | $ 5,147 | |
Fair value, measurements, nonrecurring | Level 3 | Loan servicing rights | Discounted cash flows | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (as a percent) | 9.70% | |
Discount rate (as a percent) | 10.00% | |
Fair value, measurements, nonrecurring | Level 3 | Loan servicing rights | Discounted cash flows | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (as a percent) | 23.00% | |
Discount rate (as a percent) | 15.00% | |
Fair value, measurements, nonrecurring | Level 3 | Loan servicing rights | Discounted cash flows | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (as a percent) | 12.50% | |
Discount rate (as a percent) | 11.90% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Derivative, remaining maturity (or less) | 180 days |
Fair Value Measurements - Sc134
Fair Value Measurements - Schedule of Balance Sheet Grouping Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Carrying Amount | Level 1 | ||
Assets | ||
Cash and cash equivalents | $ 360,396 | $ 524,611 |
Carrying Amount | Level 3 | ||
Assets | ||
Loans, net excluding fair valued loans and loans held for sale | 7,881,018 | 7,473,973 |
Carrying Amount | Level 2 | ||
Assets | ||
Accrued interest receivable | 53,176 | 49,531 |
Cash surrender value of life insurance policies | 29,619 | 29,166 |
Federal Home Loan Bank stock | 37,551 | 47,025 |
Liabilities | ||
Deposits | 8,977,613 | 8,604,790 |
FHLB advances and other borrowings | 643,214 | 871,037 |
Securities sold under repurchase agreements | 132,636 | 141,688 |
Accrued interest payable | 4,405 | 4,074 |
Subordinated debentures and subordinated notes payable | 108,302 | 111,873 |
Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 360,396 | 524,611 |
Fair Value | Level 3 | ||
Assets | ||
Loans, net excluding fair valued loans and loans held for sale | 7,798,134 | 7,433,851 |
Fair Value | Level 2 | ||
Assets | ||
Accrued interest receivable | 53,176 | 49,531 |
Cash surrender value of life insurance policies | 29,619 | 29,166 |
Federal Home Loan Bank stock | 37,551 | 47,025 |
Liabilities | ||
Deposits | 8,978,926 | 8,603,708 |
FHLB advances and other borrowings | 645,421 | 874,763 |
Securities sold under repurchase agreements | 132,636 | 141,688 |
Accrued interest payable | 4,405 | 4,074 |
Subordinated debentures and subordinated notes payable | $ 108,293 | $ 112,826 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of EPS, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | $ 144,786 | $ 121,253 | $ 109,065 |
Weighted average common shares outstanding | 58,770,708 | 56,563,438 | 57,455,693 |
Dilutive effect of stock based compensation (in shares) | 258,674 | 165,912 | 45,185 |
Weighted average common shares outstanding for diluted earnings per share calculation | 59,029,382 | 56,729,350 | 57,500,878 |
Basic earnings per share (in dollars per share) | $ 2.46 | $ 2.14 | $ 1.90 |
Diluted earnings per share (in dollars per share) | $ 2.45 | $ 2.14 | $ 1.90 |
Performance stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 36,696 | |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 54,207 |
Parent Company Only Financia136
Parent Company Only Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Assets | ||||
Cash and cash equivalents | $ 360,396 | $ 524,611 | $ 237,770 | $ 256,639 |
Accrued interest receivable | 53,176 | 49,531 | ||
Net deferred tax assets | 42,400 | 38,346 | ||
Other assets | 52,041 | 59,563 | ||
Total assets | 11,690,011 | 11,531,180 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,302 | 111,873 | ||
Accrued interest payable | 4,405 | 4,074 | ||
Accrued expenses and other liabilities | 51,734 | 52,812 | ||
Total liabilities | 9,935,011 | 9,867,789 | ||
Stockholders’ equity | ||||
Common stock | 588 | 587 | ||
Additional paid-in capital | 1,314,039 | 1,312,347 | ||
Retained earnings | 445,747 | 344,923 | ||
Accumulated other comprehensive income | (5,374) | 5,534 | ||
Total stockholders’ equity | 1,755,000 | 1,663,391 | 1,459,346 | 1,421,090 |
Total liabilities and stockholders’ equity | 11,690,011 | 11,531,180 | ||
Great Western Bancorp, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 15,004 | 6,521 | $ 2,274 | $ 5,753 |
Investment in subsidiaries | 1,839,293 | 1,762,070 | ||
Accrued interest receivable | 9 | 8 | ||
Net deferred tax assets | 1,502 | 855 | ||
Other assets | 8,506 | 7,685 | ||
Total assets | 1,864,314 | 1,777,139 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,302 | 111,873 | ||
Accrued interest payable | 465 | 431 | ||
Accrued expenses and other liabilities | 547 | 1,444 | ||
Total liabilities | 109,314 | 113,748 | ||
Stockholders’ equity | ||||
Common stock | 588 | 587 | ||
Additional paid-in capital | 1,314,039 | 1,312,347 | ||
Retained earnings | 445,747 | 344,923 | ||
Accumulated other comprehensive income | (5,374) | 5,534 | ||
Total stockholders’ equity | 1,755,000 | 1,663,391 | ||
Total liabilities and stockholders’ equity | $ 1,864,314 | $ 1,777,139 |
Parent Company Only Financia137
Parent Company Only Financial Statements - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income | |||
Dividends on securities | $ 1,071 | $ 1,201 | $ 1,247 |
Expenses | |||
Interest on related party notes payable | 0 | 0 | 771 |
Interest on subordinated debentures and subordinated notes payable | 4,464 | 3,737 | 1,557 |
Salaries and employee benefits | 128,135 | 109,055 | 100,646 |
Professional fees | 15,038 | 13,572 | 14,024 |
Other | 16,565 | 15,533 | 12,992 |
Income tax benefit | 69,441 | 58,863 | 52,487 |
Net income | 144,786 | 121,253 | 109,065 |
Great Western Bancorp, Inc. | |||
Income | |||
Dividends from subsidiary bank | 62,470 | 70,582 | 88,647 |
Dividends on securities | 123 | 223 | 304 |
Other | 62 | 48 | 53 |
Total income | 62,655 | 70,853 | 89,004 |
Expenses | |||
Interest on related party notes payable | 0 | 0 | 771 |
Interest on subordinated debentures and subordinated notes payable | 4,464 | 3,737 | 1,557 |
Salaries and employee benefits | 6,847 | 3,723 | 1,547 |
Professional fees | 631 | 378 | 722 |
Acquisition expenses | 0 | 1,010 | 0 |
Other | 2,204 | 2,512 | 2,224 |
Total expense | 14,146 | 11,360 | 6,821 |
Income before income tax and equity in undistributed net income of subsidiaries | 48,509 | 59,493 | 82,183 |
Income tax benefit | (8,147) | (3,414) | (2,850) |
Income before equity in undistributed net income of subsidiaries | 56,656 | 62,907 | 85,033 |
Equity in undistributed net income of subsidiaries | 88,130 | 58,346 | 24,032 |
Net income | $ 144,786 | $ 121,253 | $ 109,065 |
Parent Company Only Financia138
Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | |||
Net income | $ 144,786 | $ 121,253 | $ 109,065 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,599 | 16,259 | 20,984 |
Gain on redemption of subordinated debentures | (111) | 0 | 0 |
Stock-based compensation | 6,810 | 3,517 | 1,236 |
Deferred income taxes | 2,631 | (1,563) | 7,040 |
Changes in: | |||
Accrued interest receivable | (3,645) | (1,337) | (1,468) |
Other assets | (2,405) | 4,703 | (1,814) |
Accrued interest payable and other liabilities | (65,866) | 19,017 | 30,330 |
Net cash provided by operating activities | 131,509 | 184,809 | 198,763 |
Investing activities | |||
Business acquisitions, net of cash acquired | 0 | (15,669) | 0 |
Net cash used in investing activities | (379,193) | (352,139) | (494,824) |
Financing activities | |||
Proceeds from issuance of subordinated notes payable, net | 0 | 0 | 34,632 |
Redemption of subordinated debentures | (3,625) | 0 | 0 |
Payment of related party notes payable | 0 | 0 | (41,295) |
Common stock repurchased | (5,605) | 0 | (60,000) |
Dividends paid | (43,474) | (31,419) | (20,520) |
Net cash provided by financing activities | 83,469 | 454,171 | 277,192 |
Net (decrease) increase in cash and cash equivalents | (164,215) | 286,841 | (18,869) |
Cash and cash equivalents, beginning of year | 524,611 | 237,770 | 256,639 |
Cash and cash equivalents, end of year | 360,396 | 524,611 | 237,770 |
Great Western Bancorp, Inc. | |||
Operating activities | |||
Net income | 144,786 | 121,253 | 109,065 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 165 | 36 | 12 |
Gain on redemption of subordinated debentures | (111) | 0 | 0 |
Stock-based compensation | 6,810 | 3,517 | 1,236 |
Deferred income taxes | (1,796) | 3 | (5,351) |
Changes in: | |||
Accrued interest receivable | (1) | (3) | 0 |
Other assets | (822) | (187) | 2,510 |
Accrued interest payable and other liabilities | 286 | 225 | 264 |
Equity in undistributed net income of subsidiaries | (88,130) | (58,346) | (24,032) |
Net cash provided by operating activities | 61,187 | 66,498 | 83,704 |
Investing activities | |||
Business acquisitions, net of cash acquired | 0 | (30,832) | 0 |
Net cash used in investing activities | 0 | (30,832) | 0 |
Financing activities | |||
Proceeds from issuance of subordinated notes payable, net | 0 | 0 | 34,632 |
Redemption of subordinated debentures | (3,625) | 0 | 0 |
Payment of related party notes payable | 0 | 0 | (41,295) |
Common stock repurchased | (5,605) | 0 | (60,000) |
Dividends paid | (43,474) | (31,419) | (20,520) |
Net cash provided by financing activities | (52,704) | (31,419) | (87,183) |
Net (decrease) increase in cash and cash equivalents | 8,483 | 4,247 | (3,479) |
Cash and cash equivalents, beginning of year | 6,521 | 2,274 | 5,753 |
Cash and cash equivalents, end of year | $ 15,004 | $ 6,521 | $ 2,274 |