Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 20, 2018 | 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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,371,749,531 | ||
Entity Common Stock, Shares Outstanding (in shares) | 57,666,187 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Cash and due from banks | $ 168,119 | $ 170,657 |
Interest-bearing bank deposits | 130,577 | 189,739 |
Cash and cash equivalents | 298,696 | 360,396 |
Securities available for sale | 1,385,650 | 1,367,960 |
Loans, net of unearned discounts and deferred fees, including $42,627 and $57,537 of loans covered by a FDIC loss share agreement at September 30, 2018 and 2017, respectively, and $865,386 and $1,016,576 of loans at fair value under the fair value option at September 30, 2018 and 2017, respectively, and $5,456 and $7,456 of loans held for sale at September 30, 2018 and 2017, respectively | 9,415,924 | 8,968,553 |
Allowance for loan and lease losses | (64,540) | (63,503) |
Net loans | 9,351,384 | 8,905,050 |
Premises and equipment, including $1,104 and $5,147 of property held for sale at September 30, 2018 and 2017, respectively | 113,839 | 112,209 |
Accrued interest receivable | 58,948 | 53,176 |
Other repossessed property, including $131 and $0 of property covered by FDIC loss share agreements at September 30, 2018 and 2017, respectively | 23,074 | 8,985 |
Goodwill | 739,023 | 739,023 |
Cash surrender value of life insurance policies | 30,461 | 29,619 |
Net deferred tax assets | 30,132 | 42,400 |
Other assets | 85,601 | 71,193 |
Total assets | 12,116,808 | 11,690,011 |
Deposits | ||
Noninterest-bearing | 1,842,704 | 1,856,126 |
Interest-bearing | 7,890,795 | 7,121,487 |
Total deposits | 9,733,499 | 8,977,613 |
Securities sold under agreements to repurchase | 90,907 | 132,636 |
FHLB advances and other borrowings | 275,000 | 643,214 |
Subordinated debentures and subordinated notes payable | 108,468 | 108,302 |
Accrued expenses and other liabilities | 68,383 | 73,246 |
Total liabilities | 10,276,257 | 9,935,011 |
Stockholders’ equity | ||
Common stock, $0.01 par value, authorized 500,000,000 shares; 58,917,147 shares issued and outstanding at September 30, 2018 and 58,834,066 shares issued and outstanding at September 30, 2017 | 589 | 588 |
Additional paid-in capital | 1,318,457 | 1,314,039 |
Retained earnings | 553,014 | 445,747 |
Accumulated other comprehensive (loss) | (31,509) | (5,374) |
Total stockholders' equity | 1,840,551 | 1,755,000 |
Total liabilities and stockholders' equity | $ 12,116,808 | $ 11,690,011 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Loans covered by FDIC loss share agreements | $ 42,627 | $ 57,537 |
Loans and written loan commitments at fair value under the fair value option | 865,386 | 1,016,576 |
Loan held for sale | 5,456 | 7,456 |
Property held for sale | 1,104 | 5,147 |
Property covered by FDIC loss share arrangements | $ 131 | $ 0 |
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 | 58,917,147 | 58,834,066 |
Common stock, shares outstanding | 58,917,147 | 58,834,066 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income | |||
Loans | $ 451,290 | $ 407,282 | $ 363,728 |
Investment securities | 29,171 | 26,311 | 24,680 |
Federal funds sold and other | 1,376 | 922 | 574 |
Total interest income | 481,837 | 434,515 | 388,982 |
Interest expense | |||
Deposits | 60,112 | 35,035 | 25,114 |
FHLB advances and other borrowings | 8,848 | 5,821 | 4,673 |
Subordinated debentures and subordinated notes payable | 5,040 | 4,464 | 3,737 |
Total interest expense | 74,000 | 45,320 | 33,524 |
Net interest income | 407,837 | 389,195 | 355,458 |
Provision for loan and lease losses | 17,986 | 21,539 | 16,955 |
Net interest income after provision for loan losses | 389,851 | 367,656 | 338,503 |
Noninterest income | |||
Service charges and other fees | 51,077 | 55,725 | 52,925 |
Wealth management fees | 9,219 | 9,118 | 7,283 |
Mortgage banking income, net | 5,842 | 7,928 | 7,261 |
Net gain on sale of securities | 6 | 75 | 160 |
Net (decrease) increase in fair value of loans at fair value | (45,407) | (65,231) | 26,314 |
Net realized and unrealized gain (loss) on derivatives | 44,596 | 49,900 | (48,658) |
Other | 8,276 | 5,699 | 3,968 |
Total noninterest income | 73,609 | 63,214 | 49,253 |
Noninterest expense | |||
Salaries and employee benefits | 135,352 | 128,135 | 109,055 |
Data processing | 29,805 | 28,288 | 25,440 |
Communication expenses | 20,330 | 19,817 | 19,554 |
Advertising | 17,891 | 15,038 | 13,572 |
Equipment expenses | 4,507 | 3,983 | 4,267 |
Net loss recognized on repossessed property and other related expenses | 4,369 | 1,749 | 1,263 |
Amortization of core deposits and other intangibles | 1,662 | 2,358 | 3,264 |
Acquisition expenses | 0 | 710 | 15,692 |
Other | 17,509 | 16,565 | 15,533 |
Total noninterest expense | 231,425 | 216,643 | 207,640 |
Income before income taxes | 232,035 | 214,227 | 180,116 |
Provision for income taxes | 74,119 | 69,441 | 58,863 |
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Basic earnings per common share | |||
Weighted average shares outstanding, basic (in shares) | 58,938,169 | 58,770,708 | 56,563,438 |
Basic earnings per share (in dollars per share) | $ 2.68 | $ 2.46 | $ 2.14 |
Diluted earnings per common share | |||
Weighted average shares outstanding, diluted (in shares) | 59,131,650 | 59,029,382 | 56,729,350 |
Diluted earnings per share (in dollars per share) | $ 2.67 | $ 2.45 | $ 2.14 |
Dividends per share | |||
Dividends paid | $ 53,002 | $ 43,474 | $ 31,419 |
Dividends per share (in dollars per share) | $ 0.90 | $ 0.74 | $ 0.56 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Securities available for sale: | |||
Net unrealized holding (loss) gain arising during the period | (32,816) | (17,848) | 5,347 |
Reclassification adjustment for net gain realized in net income | (6) | (75) | (160) |
Income tax benefit (expense) | 9,244 | 6,811 | (1,971) |
Net change in unrealized (loss) gain on securities available for sale | (23,578) | (11,112) | 3,216 |
Defined benefit pension plan obligation: | |||
Net unrealized holding (loss) gain arising during the period | (329) | 329 | 0 |
Income tax benefit (expense) | 125 | (125) | 0 |
Net change in defined benefit pension plan obligation | (204) | 204 | 0 |
Other comprehensive (loss) income, net of tax | (23,782) | (10,908) | 3,216 |
Comprehensive income | $ 134,134 | $ 133,878 | $ 124,469 |
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, 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 | 3,517 | |||||
Common stock issued in business acquisition | 107,478 | 35 | 107,443 | ||||
Cash dividends: | |||||||
Common stock, $0.90, $0.74, and $0.56 per share in 2018, 2017 and 2016, 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 | ||||
Repurchase of common stock | (5,605) | (1) | (5,604) | ||||
Cash dividends: | |||||||
Common stock, $0.90, $0.74, and $0.56 per share in 2018, 2017 and 2016, respectively | (43,474) | (43,474) | |||||
Ending balance at Sep. 30, 2017 | 1,755,000 | 588 | 1,314,039 | 445,747 | (5,374) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 157,916 | 157,916 | 157,916 | ||||
Other comprehensive income, net of tax | (23,782) | (23,782) | (23,782) | ||||
Comprehensive income | 134,134 | $ 134,134 | |||||
Stock-based compensation, net of tax | 4,419 | 1 | 4,418 | ||||
Reclassification from AOCI to retained earnings | [2] | 0 | 2,353 | (2,353) | |||
Cash dividends: | |||||||
Common stock, $0.90, $0.74, and $0.56 per share in 2018, 2017 and 2016, respectively | (53,002) | (53,002) | |||||
Ending balance at Sep. 30, 2018 | $ 1,840,551 | $ 589 | $ 1,318,457 | $ 553,014 | $ (31,509) | ||
[1] | Cumulative effect adjustment relates to adoption of ASU 2016-09, Compensation - Stock Based Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. | ||||||
[2] | Reclassification due to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 1, New Accounting Pronouncements and Note 18, Income Taxes, for additional information. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid on common stock (in dollars per share) | $ 0.90 | $ 0.74 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | |||
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,093 | 13,599 | 16,259 |
Amortization of FDIC indemnification asset | 2,778 | 4,748 | 3,836 |
Net loss on sale of securities and other assets | 5,731 | 2,545 | 4,146 |
Gain on redemption of subordinated debentures | 0 | (111) | 0 |
Net gain on sale of loans | (6,829) | (9,635) | (8,053) |
Provision for loan and lease losses | 17,986 | 21,539 | 16,955 |
(Reversal of) provision for loan servicing rights loss | (73) | 68 | 13 |
Stock-based compensation | 4,419 | 6,810 | 3,517 |
Originations of residential real estate loans held for sale | (264,514) | (275,015) | (294,221) |
Proceeds from sales of residential real estate loans held for sale | 273,343 | 290,111 | 299,223 |
Net deferred income taxes | 21,302 | 2,631 | (1,563) |
Changes in: | |||
Accrued interest receivable | (5,772) | (3,645) | (1,337) |
Other assets | (34,209) | (2,405) | 4,703 |
Accrued interest payable and other liabilities | (2,742) | (64,517) | 20,078 |
Net cash provided by operating activities | 182,429 | 131,509 | 184,809 |
Investing activities | |||
Purchase of securities available for sale | (334,900) | (313,701) | (278,291) |
Proceeds from sales of securities available for sale | 24,971 | 5,074 | 145,934 |
Proceeds from maturities of securities available for sale | 254,985 | 233,357 | 308,033 |
Net increase in loans | (490,804) | (318,876) | (503,394) |
Payment of covered losses from FDIC indemnification claims | (770) | (706) | (960) |
Purchase of premises and equipment | (13,878) | (6,409) | (15,456) |
Proceeds from sale of premises and equipment | 4,599 | 5,260 | 741 |
Proceeds from sale of repossessed property | 7,468 | 7,334 | 12,173 |
Purchase of FHLB stock | (64,172) | (38,345) | (48,295) |
Proceeds from redemption of FHLB stock | 79,190 | 47,819 | 43,045 |
Net cash paid in business acquisition | 0 | 0 | (15,669) |
Net cash used in investing activities | (533,311) | (379,193) | (352,139) |
Financing activities | |||
Net increase in deposits | 756,145 | 373,408 | 355,001 |
Net (decrease) increase in securities sold under agreements to repurchase and other short-term borrowings | (41,729) | 347,148 | 81,762 |
Proceeds from FHLB advances and other long-term borrowings | 150,000 | 0 | 394,827 |
Repayments on FHLB advances and other long-term borrowings | (518,200) | (584,000) | (346,000) |
Redemption of subordinated debentures | 0 | (3,625) | 0 |
Common stock repurchased | 0 | (5,605) | 0 |
Taxes paid related to net share settlement of equity awards | (4,032) | (383) | 0 |
Dividends paid | (53,002) | (43,474) | (31,419) |
Net cash provided by financing activities | 289,182 | 83,469 | 454,171 |
Net (decrease) increase in cash and cash equivalents | (61,700) | (164,215) | 286,841 |
Cash and cash equivalents, beginning of period | 360,396 | 524,611 | 237,770 |
Cash and cash equivalents, end of period | 298,696 | 360,396 | 524,611 |
Supplemental disclosure of cash flow information | |||
Cash payments for interest | 69,633 | 44,989 | 33,456 |
Cash payments for income taxes | 50,020 | 71,964 | 54,570 |
Supplemental disclosure of noncash investing and financing activities | |||
Loans transferred to repossessed properties | 25,926 | 7,786 | 4,331 |
Repossessed property transferred to premises and equipment | $ 0 | $ 0 | $ 840 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations The Company is a bank holding company organized under the laws of Delaware and is listed on the NYSE under the symbol "GWB". The primary business of the Company is ownership of its wholly-owned subsidiary, Great Western Bank. The Bank is a full-service regional bank focused on relationship-based business 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 FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a regional bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized and does not allocate resources around discernible lines of business or geographies and prefers to work as an integrated unit to customize solutions for its customers, with business line and geographic emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment, which is consistent with the Company’s preparation of financial information that is evaluated regularly by management in deciding how to allocate resources and assess performance. Basis of Presentation and Principles of Consolidation The accounting and reporting policies of the Company conform with 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 on 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 on the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Subsequent Events On October 25, 2018 , the Board of Directors of the Company declared a dividend of $0.25 per common share payable on November 21, 2018 to stockholders of record as of close of business on November 9, 2018 . On October 29, 2018, post our fiscal year end and through November 27, 2018, the Company repurchased 1,583,005 common shares for approximately $57.8 million under a stock repurchase program previously approved by the Board of Directors. 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 on the consolidated financial statements or disclosure in the notes to the consolidated financial statements. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 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 on the consolidated statements of income from the effective date of acquisition. Fair values are subject to refinement for up to a year after the closing date of an acquisition as information relative to closing date fair values becomes available. Adjustments recorded to the acquired assets and liabilities are applied prospectively in accordance with ASU 2015-16. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, management has defined cash and cash equivalents to include cash on hand, amounts due from banks (including cash items in process of clearing), and amounts held at other financial institutions with an initial maturity of 90 days or less. Securities 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 on 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 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 on the consolidated statements of income. Federal Home Loan Bank Stock Investments in the FHLB stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible 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, usually 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 usually 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 agri-business banking customers to assist them in facilitating their risk management strategies. The fair value option was elected upon the origination or acquisition of these loans and written loan commitments. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon closing. The 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 makes commercial, agricultural, residential real estate, consumer and other loans to customers primarily in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota . The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Collateral held varies but includes accounts receivable, marketable securities, inventory, equipment, real estate, 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 residential real estate or consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of consumer loans. 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 and Reserve for 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 are inherently subjective. The Company considers the uncertainty related to certain industry sectors and the extent of credit exposure to specific borrowers within the portfolio. In addition, consideration is given to concentration risks associated with the various loan portfolios and current economic conditions that might impact the portfolio. The Company also considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry, or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes in unemployment rates, gross domestic product, and consumer bankruptcy filings. 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 on the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans that are 90 days or more past due are put on nonaccrual status unless a repayment is eminent. Loans deemed to be uncollectible are charged off against the allowance for loan and lease losses. Recoveries of amounts previously charged-off are credited to the allowance for loan and lease losses. The allowance for loan and lease losses consist of reserves for probable losses that have been identified related to specific borrowing relationships that are individually evaluated for impairment ("specific reserve"), as well as probable losses inherent in our loan portfolio that are not specifically identified ("collective reserve"). The specific reserve relates to impaired loans. A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due (interest as well as principal) according to the contractual terms of the loan agreement. Specific reserves are determined on a loan-by-loan basis based on management’s best estimate of the Company's exposure, given the current payment status of the loan, the present value of expected payments, and the value of any underlying collateral. Impaired loans also include loans modified in troubled debt restructurings. Generally, the impairment related to troubled debt restructurings is measured based on the fair value of the collateral, less cost to sell, or the present value of expected payments relative to the unpaid principal balance. If the impaired loan is identified as collateral dependent, then the fair value of the collateral method of measuring the amount of the impairment is utilized. This method requires obtaining an independent appraisal of the collateral and reducing the appraised value by applying a discount factor to the appraised value, if necessary, and including costs to sell. Management’s estimate for collective reserves reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates primarily are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes. The 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 reversed. For acquired non-impaired 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 non-impaired 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 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 indemnification assets in other assets on the consolidated balance sheets 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 s |
New Accounting Standards (Notes
New Accounting Standards (Notes) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Accounting Standards Adopted in Fiscal Year 2018 In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows for the reclassification of stranded tax effects resulting from the Tax Reform Act from other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 during the second quarter of fiscal year 2018 with period of adoption application. Upon adoption, the Company made a policy election to reclassify stranded tax effects of approximately $2.4 million from accumulated other comprehensive income to retained earnings. In March 2017, the 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 early adopted ASU 2017-08 during the first quarter of fiscal year 2018. There was no cumulative effect adjustment to the Company's consolidated financial statements. Accounting Standards Not Yet Adopted in Fiscal Year 2018 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes in the Disclosure Requirements for Fair Value Measurement (Topic 820) , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Entities are also allowed to elect to early adopt the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until after their effective date. As ASU 2018-13 only revises disclosure requirements, the Company does not believe this ASU will not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 is to be applied to all existing hedging relationships on the date of adoption and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period, with the effect of adoption reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of ASU 2017-12 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which addresses timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires institutions to measure all expected credit losses related to financial assets measured at amortized costs with an expected loss model based on historical experience, current conditions and reasonable and supportable forecasts relevant to affect the collectability of the financial assets, which is referred to as the current expected credit loss (CECL) model. ASU 2016-13 requires enhanced disclosures, including qualitative and quantitative requirements, to help understand significant estimates and judgments used in estimating credit losses, as well as provide additional information about the amounts recorded in the financial statements. 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 a project team working on the implementation of ASU 2016-13, and during the quarter, selected a vendor to partner with to make the required changes to our existing credit loss estimation methodology. The Company is currently evaluating the potential impact on our consolidated financial statements, however, since the magnitude of the anticipated change in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which requires that lessees recognize the assets and liabilities arising from leases on the balance sheet and disclosing key information about leasing arrangements. Lessees will be required to recognize an obligation for future lease payments measured on a discounted basis and a related right-of-use asset. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, "Revenue from Contracts with Customers." 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 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 became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company adopted this standard beginning October 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which implements a more robust framework that clarifies the principles for recognizing revenue and gives greater consistency and comparability in revenue recognition practices. In the new framework, an entity recognizes revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. The new model requires the identification of performance obligations included in the contract with customers, a determination of the transaction price and an allocation of the price to those performance obligations. The entity recognizes revenue when performance obligations are satisfied. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance pertaining to the identification of performance obligations and the licensing implementation. In May 2016, the FASB issued ASU 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related to the adoption of ASU 2014-09. The standard permits the use of either the retrospective or cumulative effect transition method. The standard, along with subsequent guidance from FASB, lists several items that are specifically out of scope for ASU 2014-09, including but not limited to core interest income, derivative instruments, investments, and loan origination fees. The Company has completed its evaluation of the effects this standard will have on its consolidated financial statements and related disclosures. The Company does not expect to recognize a significant cumulative adjustment to equity upon implementation of the standard as our current revenue recognition policies generally conform with the principals in ASU 2014-09. Per ASU 2016-08, the Company does anticipate an immaterial reclassification adjustment to its consolidated statements of income related to the net versus gross presentation of the interchange and wealth management revenue streams. The Company adopted these standards beginning October 1, 2018 and used the modified retrospective method. |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Sep. 30, 2018 | |
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 $53.7 million and $26.9 million at September 30, 2018 and 2017 , respectively. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The amortized cost and approximate fair value of investments in securities, all of which are classified as available for sale according to management’s intent, are summarized as follows. Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 168,394 $ — $ (1,222 ) $ 167,172 Mortgage-backed securities: Government National Mortgage Association 442,458 35 (16,335 ) 426,158 Federal Home Loan Mortgage Corporation 297,380 — (7,055 ) 290,325 Federal National Mortgage Association 188,192 — (6,081 ) 182,111 Small Business Assistance Program 260,458 — (9,345 ) 251,113 States and political subdivision securities 69,566 4 (1,795 ) 67,775 Other 1,006 — (10 ) 996 Total $ 1,427,454 $ 39 $ (41,843 ) $ 1,385,650 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (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 Home Loan Mortgage Corporation 169,147 75 (1,247 ) 167,975 Federal National Mortgage Association 170,247 22 (1,287 ) 168,982 Small Business Assistance Program 224,005 726 (1,001 ) 223,730 States and political subdivision securities 73,041 187 (642 ) 72,586 Other 1,006 28 — 1,034 Total $ 1,376,942 $ 1,845 $ (10,827 ) $ 1,367,960 The amortized cost and approximate fair value of debt securities available for sale as of September 30, 2018 and 2017 , 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, 2018 September 30, 2017 Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ 111,842 $ 111,221 $ 91,535 $ 91,597 Due after one year through five years 114,920 113,069 193,117 193,373 Due after five years through ten years 11,076 10,535 16,306 16,097 Due after ten years 122 122 122 122 237,960 234,947 301,080 301,189 Mortgage-backed securities 1,188,488 1,149,707 1,074,856 1,065,737 Securities without contractual maturities 1,006 996 1,006 1,034 Total $ 1,427,454 $ 1,385,650 $ 1,376,942 $ 1,367,960 Proceeds from sales of securities available for sale were $25.0 million , $5.1 million and $145.9 million for the fiscal years ended September 30, 2018 , 2017 and 2016 respectively. Gross gains (pre-tax) of $0.0 million , $0.1 million and $0.5 million were realized on the sales for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively, using the specific identification method. Gross losses (pre-tax) were negligible for fiscal year September 30, 2018 , none for fiscal year September 30, 2017 and negligible for fiscal year September 30, 2016 , using the specific identification method. The Company recognized no other-than-temporary impairment for the fiscal years ended September 30, 2018 and 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 fiscal year ended September 30, 2016 . Securities with an estimated fair value of approximately $787.4 million and $951.4 million at September 30, 2018 and 2017 , 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 98% and 68% of the Company’s investment portfolio at September 30, 2018 and 2017 , 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, 2018 or 2017 . The following table presents the Company’s gross unrealized losses and approximate fair value in investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ (1,222 ) $ — $ — $ 167,172 $ (1,222 ) Mortgage-backed securities 416,677 (8,427 ) 709,387 (30,389 ) 1,126,064 (38,816 ) States and political subdivision securities 23,534 (250 ) 42,282 (1,545 ) 65,816 (1,795 ) Other 996 (10 ) — — 996 (10 ) Total $ 608,379 $ (9,909 ) $ 751,669 $ (31,934 ) $ 1,360,048 $ (41,843 ) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (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 ) Other — — — — — — Total $ 667,677 $ (5,637 ) $ 267,141 $ (5,190 ) $ 934,818 $ (10,827 ) As of September 30, 2018 and 2017 , the Company had 390 and 249 securities, respectively, in an unrealized loss position. |
Loans
Loans | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans | Loans The following table presents the composition of net loans as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Commercial real estate $ 4,629,330 $ 4,124,805 Agriculture 2,182,688 2,122,138 Commercial non-real estate 1,699,987 1,718,914 Residential real estate 837,569 932,892 Consumer 49,689 66,559 Other 46,487 43,207 Ending balance 9,445,750 9,008,515 Less: Unamortized discount on acquired loans (18,283 ) (29,121 ) Unearned net deferred fees and costs and loans in process (11,543 ) (10,841 ) Total $ 9,415,924 $ 8,968,553 The loan breakouts above include loans covered by FDIC loss sharing agreements totaling $42.6 million and $57.5 million as of September 30, 2018 and 2017 , respectively, residential real estate loans held for sale totaling $5.5 million and $7.5 million at September 30, 2018 and 2017 , respectively, and $865.4 million and $1.02 billion of loans accounted for at fair value as of September 30, 2018 and 2017 , respectively. Unearned net deferred fees and costs totaled $13.0 million and $11.6 million as of September 30, 2018 and 2017 , respectively. Loans in process represent loans that have been funded as of the balance sheet dates but not classified into a loan category and loan payments received as of the balance sheet dates that have not been applied to individual loan accounts. Loans in process totaled $(1.5) million and $(0.8) million as of September 30, 2018 and 2017 , respectively. Loans guaranteed by agencies of the U.S. government totaled $168.6 million and $168.3 million at September 30, 2018 and 2017 , respectively. Principal balances of residential real estate loans sold totaled $266.5 million and $280.5 million for the fiscal years ended September 30, 2018 and 2017 , respectively. Nonaccrual The following table presents the Company’s nonaccrual loans at September 30, 2018 and 2017 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of September 30, 2018 and 2017 were $0.2 million and $1.9 million , respectively. September 30, 2018 2017 Nonaccrual loans (dollars in thousands) Commercial real estate $ 22,871 $ 14,693 Agriculture 107,198 99,325 Commercial non-real estate 6,887 13,674 Residential real estate 3,549 4,421 Consumer 61 112 Total $ 140,566 $ 132,225 Credit Quality Information The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2018 and 2017 . 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 $865.4 million for 2018 and $1.02 billion for 2017 . As of September 30, 2018 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 4,108,314 $ 1,610,291 $ 1,401,418 $ 779,610 $ 48,979 $ 46,487 $ 7,995,099 Watchlist 53,150 239,392 19,503 4,548 322 — 316,915 Substandard 41,184 137,205 20,117 6,366 159 — 205,031 Doubtful 93 2 2,277 37 — — 2,409 Loss — — — — — — — Ending balance 4,202,741 1,986,890 1,443,315 790,561 49,460 46,487 8,519,454 Loans covered by a FDIC loss sharing agreement — — — 42,627 — — 42,627 Total $ 4,202,741 $ 1,986,890 $ 1,443,315 $ 833,188 $ 49,460 $ 46,487 $ 8,562,081 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. As of September 30, 2017 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ 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 a FDIC loss sharing agreement — — — 57,537 — — 57,537 Total $ 3,638,032 $ 1,865,882 $ 1,426,960 $ 922,571 $ 66,166 $ 43,207 $ 7,962,818 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. Past Due Loans The following table presents the Company’s past due loans at September 30, 2018 and 2017 . 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 $865.4 million for 2018 and $1.02 billion for 2017 . 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables As of September 30, 2018 (dollars in thousands) Commercial real estate $ 920 $ 551 $ 9,135 $ 10,606 $ 4,192,135 $ 4,202,741 Agriculture 1,243 2,042 51,579 54,864 1,932,026 1,986,890 Commercial non-real estate 551 16 4,068 4,635 1,438,680 1,443,315 Residential real estate 913 200 1,747 2,860 787,701 790,561 Consumer 83 47 1 131 49,329 49,460 Other — — — — 46,487 46,487 Ending balance 3,710 2,856 66,530 73,096 8,446,358 8,519,454 Loans covered by a FDIC loss sharing agreement 30 233 471 734 41,893 42,627 Total $ 3,740 $ 3,089 $ 67,001 $ 73,830 $ 8,488,251 $ 8,562,081 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables 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 a FDIC loss sharing agreement 998 54 738 1,790 55,747 57,537 Total $ 7,311 $ 25,986 $ 37,635 $ 70,932 $ 7,891,886 $ 7,962,818 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 $865.4 million for 2018 and $1.02 billion for 2017 . September 30, 2018 September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 25,136 $ 25,223 $ 3,668 $ 20,819 $ 24,893 $ 3,621 Agriculture 60,053 76,874 9,590 79,219 88,268 11,468 Commercial non-real estate 14,177 17,241 4,508 17,950 28,755 4,779 Residential real estate 4,509 5,153 2,210 5,177 5,874 2,581 Consumer 160 165 61 280 287 86 Total impaired loans with an allowance recorded 104,035 124,656 20,037 123,445 148,077 22,535 With no allowance recorded: Commercial real estate 15,764 58,141 — 16,652 69,677 — Agriculture 77,172 80,355 — 51,256 64,177 — Commercial non-real estate 8,905 18,047 — 13,983 38,924 — Residential real estate 2,177 4,574 — 2,574 9,613 — Consumer 1 118 — 13 950 — Total impaired loans with no allowance recorded 104,019 161,235 — 84,478 183,341 — Total impaired loans $ 208,054 $ 285,891 $ 20,037 $ 207,923 $ 331,418 $ 22,535 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 54,434 $ 2,815 $ 42,347 $ 2,163 $ 70,266 $ 3,876 Agriculture 127,483 4,767 131,026 5,503 100,052 6,502 Commercial non-real estate 28,938 1,405 41,489 1,485 45,592 1,971 Residential real estate 7,156 452 8,900 453 11,773 576 Consumer 219 14 369 47 309 55 Total $ 218,230 $ 9,453 $ 224,131 $ 9,651 $ 227,992 $ 12,980 Valuation adjustments made to repossessed properties for the fiscal years ended September 30, 2018 and 2017 , totaled $1.6 million and $1.7 million , respectively. The adjustments are included in net loss recognized on repossessed property and other related expenses in noninterest expense. Troubled Debt Restructurings Included in certain loan categories in the impaired loans are TDRs that were classified as impaired. These TDRs do not include purchased credit impaired loans. When the Company grants concessions to borrowers such as reduced interest rates or extensions of loan periods that would not be considered other than because of borrowers’ financial difficulties, the modification is considered a TDR. Specific reserves included in the allowance for loan and lease losses for TDRs were $9.2 million and $8.8 million at September 30, 2018 and 2017 , respectively. As of September 30, 2018 , there were $0.3 million of commitments to lend additional funds to borrowers whose loans were modified in a TDR. As of September 30, 2017 , there were negligible commitments to lend additional funds to borrowers whose loans were modified in a TDR. The following table presents the recorded value of the Company’s TDR balances as of September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 2,649 $ 2,616 $ 1,121 $ 5,351 Agriculture 13,248 73,741 22,678 59,633 Commercial non-real estate 3,420 656 8,369 5,641 Residential real estate 389 143 311 688 Consumer 77 — 11 21 Total $ 19,783 $ 77,156 $ 32,490 $ 71,334 The following table presents a summary of all accruing loans restructured in TDRs through either a rate modification, term extension, payment modification or due to a bankruptcy during the fiscal years ended September 30, 2018 , 2017 and 2016 . September 30, 2018 September 30, 2017 September 30, 2016 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Commercial real estate 1 $ 2,041 $ 2,041 2 $ 3,726 $ 3,726 5 $ 8,611 $ 8,611 Agriculture 5 10,753 10,753 13 18,902 18,902 20 28,123 28,123 Commercial non-real estate — — — 9 2,044 2,044 12 9,617 9,617 Residential real estate — — — 1 9 9 1 42 42 Consumer 1 73 73 1 8 8 — — — Total accruing 7 $ 12,867 $ 12,867 26 $ 24,689 $ 24,689 38 $ 46,393 $ 46,393 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — The following table presents a summary of all nonaccruing loans restructured in TDRs through either a rate modification, term extension, payment modification or due to a bankruptcy during the fiscal years ended September 30, 2018 , 2017 and 2016 . September 30, 2018 September 30, 2017 September 30, 2016 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Commercial real estate — $ — $ — — $ — $ — — $ — $ — Agriculture 9 9,990 9,990 18 20,197 20,197 6 1,128 1,082 Commercial non-real estate — — — 3 3,788 3,788 2 760 760 Residential real estate — — — 2 133 133 3 254 253 Consumer — — — 3 21 21 1 8 8 Total nonaccruing 9 $ 9,990 $ 9,990 26 $ 24,139 $ 24,139 12 $ 2,150 $ 2,103 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — 7 47 — The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Commercial real estate — $ — — $ — — $ — Agriculture 1 366 2 8,383 2 7,307 Commercial non-real estate — — 1 — 2 275 Residential real estate — — — — 1 — Consumer — — — — 1 8 Total 1 $ 366 3 $ 8,383 6 $ 7,590 For purposes of the table above, a loan is considered to be in payment default once it is 90 days or more contractually past due under the modified terms. The table includes loans that experienced a payment default during the period, but may be performing in accordance with the modified terms as of the balance sheet date. In 2018 , 2017 and 2016 , $0.8 million , $5.5 million , and $22.3 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, 2018 | |
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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Year Ended September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Charge-offs (3,925 ) (9,473 ) (3,813 ) (569 ) (192 ) (1,932 ) (19,904 ) Recoveries 533 332 994 337 141 618 2,955 Provision 3,231 11,355 2,315 (451 ) (21 ) 1,325 17,754 (Improvement) impairment of ASC 310-30 loans (3 ) 150 — 85 — — 232 Ending balance September 30, 2018 $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Fiscal Year Ended September 30, 2017 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate 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 Fiscal Year Ended September 30, 2016 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate 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 The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of September 30, 2018 and 2017 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $865.4 million measured at fair value, loans held for sale of $5.5 million , and guaranteed loans of $160.3 million for September 30, 2018 and loans measured at fair value of $1.02 billion , loans held for sale of $7.5 million , and guaranteed loans of $168.3 million for September 30, 2017 . As of September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,668 $ 9,590 $ 4,508 $ 2,210 $ 61 $ — $ 20,037 Collectively evaluated for impairment 12,430 18,266 9,102 2,277 196 1,026 43,297 ASC 310-30 loans 679 265 — 262 — — 1,206 Total allowance $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Financing Receivables Individually evaluated for impairment $ 40,900 $ 137,225 $ 23,082 $ 6,686 $ 161 $ — $ 208,054 Collectively evaluated for impairment 4,053,712 1,823,947 1,364,511 780,047 48,711 46,487 8,117,415 ASC 310-30 loans 27,001 2,815 416 40,025 588 — 70,845 Loans Outstanding $ 4,121,613 $ 1,963,987 $ 1,388,009 $ 826,758 $ 49,460 $ 46,487 $ 8,396,314 As of September 30, 2017 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,621 $ 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 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 $1.2 million at September 30, 2018 , compared to $1.0 million at September 30, 2017 . During fiscal year 2018 , loan pools accounted for under ASC 310-30 had a net provision of $0.2 million as a result of actual cash flows being lower than expected in two of the pools during the period. Net provision reversals for fiscal year 2017 totaled $0.7 million primarily as a result of an 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. The reserve for unfunded loan commitments was $0.5 million at September 30, 2018 and 2017 , respectively, and is recorded in accrued expenses and other liabilities on the consolidated balance sheets. |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounting for Certain Loans Acquired with Deteriorated Credit Quality | Accounting for Certain Loans Acquired with Deteriorated Credit Quality In June 2010 and May 2016 , the Company acquired certain loans in the TierOne Bank and HF Financial transactions, respectively, that had deteriorated credit quality known as ASC 310-30 loans, or purchased credit impaired loans. Several factors were considered when evaluating whether a loan was considered a purchased credit impaired loan, including delinquency status of the loan, updated borrower credit status, geographic information, and updated loan-to-values ("LTV"). Further, these purchased credit impaired loans had differences between contractual amounts owed and cash flows expected to be collected, that were at least in part, due to credit quality. U.S. GAAP allows purchasers to aggregate purchased credit impaired loans acquired in the same fiscal quarter in one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Loan pools are periodically reassessed to determine expected cash flows. In determining the expected cash flows, the timing of cash flows and prepayment assumptions for smaller, homogeneous loans are based on statistical models that take into account factors such as the loan interest rate, credit profile of the borrowers, the years in which the loans were originated, and whether the loans are fixed or variable rate loans. Prepayments may be assumed on large individual loans that consider similar prepayment factors listed above for smaller homogeneous loans. The re-assessment of purchased credit impaired loans resulted in the following changes in the accretable yield during the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Balance at beginning of period $ 44,131 $ 38,124 $ 44,489 Acquisition — — 3,662 Accretion (13,193 ) (13,847 ) (9,971 ) Reclassification from nonaccretable difference 4,035 19,854 (56 ) Balance at end of period $ 34,973 $ 44,131 $ 38,124 The reclassifications from nonaccretable difference noted in the table above represent instances where specific pools of loans are expected to perform better over the remaining lives of the loans than expected at the prior re-assessment date. The following table provides purchased impaired loans at September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 100,761 $ 27,001 $ 26,322 $ 110,797 $ 30,099 $ 29,417 Agriculture 4,841 2,815 2,551 10,463 7,174 7,059 Commercial non-real estate 7,475 416 416 9,825 1,920 1,920 Residential real estate 46,646 40,025 39,763 61,981 52,736 52,540 Consumer 656 588 588 798 666 666 Total lending $ 160,379 $ 70,845 $ 69,640 $ 193,864 $ 92,595 $ 91,602 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, 2018 | |
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 other repossessed property, any differences between the carrying value of the covered assets versus the payments received during the resolution process, that are reimbursable by the FDIC, are recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduce or increase, respectively, the amount recoverable from the FDIC. The following table represents a summary of the activity related to the FDIC indemnification asset for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Balance at beginning of period $ 5,704 $ 10,777 $ 14,722 Amortization (2,778 ) (4,748 ) (3,836 ) Changes in expected reimbursements from FDIC for changes in expected credit losses (122 ) (45 ) (278 ) Changes in reimbursable expenses (1,072 ) (986 ) (791 ) Reimbursements of covered losses to the FDIC 770 706 960 Balance at end of period $ 2,502 $ 5,704 $ 10,777 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, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table presents the major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Land $ 25,598 $ 25,973 Buildings and building improvements 85,960 89,927 Furniture and equipment 27,490 26,160 Construction in progress 7,732 273 Total 146,780 142,333 Accumulated depreciation (32,941 ) (30,124 ) Premise and equipment, net $ 113,839 $ 112,209 Depreciation expense was $7.5 million , $7.6 million and $7.5 million for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Included in the premises and equipment is $1.1 million and $5.1 million of property held for sale as of September 30, 2018 and 2017 , respectively. The Company measures assets held for sale at the lower of carrying amount or estimated fair value. There were no impairment charges recognized as of September 30, 2018 and 2017 . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. Derivative Financial Instruments The Company uses interest rate swaps to manage its interest rate risk and market risk in accommodating the needs of its customers. The Company recognizes all derivatives on the consolidated balance sheet at fair value in either other assets or accrued expenses and other liabilities as appropriate. The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by the Company as of September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Financial institution counterparties $ 1,082,630 $ 22,696 $ (2,231 ) $ 1,025,474 $ 4,967 $ (22,737 ) Customer counterparties 217,066 1,533 (2,160 ) 36,072 615 — Mortgage loan commitments 22,195 — (28 ) 37,765 — (48 ) Mortgage loan forward sale contracts 27,408 28 — 43,628 48 — Total $ 1,349,299 $ 24,257 $ (4,419 ) $ 1,142,939 $ 5,630 $ (22,785 ) Netting of Derivatives We record the derivatives on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. When bilateral netting agreements or similar agreements exist between the Company and its counterparties that create a single legal claim or obligation to pay or receive the net amount in settlement of the individual derivative contracts, the Company reports derivative assets and liabilities on a net by derivative contract by counterparty basis. The following tables provide information on the Company's netting adjustments as of September 30, 2018 and 2017 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ $ (4,419 ) $ 2,231 $ — $ (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2017 Total Derivative Assets $ 1,850 $ (1,850 ) $ — $ — Total Derivative Liabilities ¹ ² $ (19,005 ) $ 1,850 $ — $ (17,155 ) 1 In addition to the cash collateral, there were securities of $25.0 million posted as collateral for financial institution counterparties at September 30, 2017. 2 There was an additional $2.3 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2017 and is included in other assets in the consolidated balance sheets. As with any financial instrument, derivative financial instruments have inherent risk including adverse changes in interest rates. The Company’s exposure to derivative credit risk is defined as the possibility of sustaining a loss due to the failure of the counterparty to perform in accordance with the terms of the contract. Credit risks associated with interest rate swaps are similar to those relating to traditional on-balance sheet financial instruments. The Company manages interest rate swap credit risk with the same standards and procedures applied to its commercial lending activities. Credit-risk-related contingent features The Company has agreements with its derivative counterparties that contain a provision where if the Company or the derivative counterparty fails to maintain its status as a well/adequately capitalized institution, then the counterparty has the right to terminate the derivative positions and the Company or the derivative counterparty would be required to settle its obligations under the agreements. The Company has minimum collateral posting thresholds with its Swap Dealers and Futures Clearing Merchant. Beginning in the second quarter of fiscal year 2018, the Company entered into RPAs with some of its derivative counterparties to assume the credit exposure related to interest rate derivative contracts. The Company's loan customer enters into an interest rate swap directly with a derivative counterparty and the Company agrees through an RPA to take on the counterparty's risk of loss on the interest rate swap due to a default by the customer. The notional amounts of RPAs sold were $37.4 million as of September 30, 2018 . Assuming all underlying loan customers defaulted on their obligation to perform under the interest rate swap with a derivative counterparty, the exposure from these RPAs would be $0.4 million at September 30, 2018 based on the fair value of the underlying swaps. The effect of derivatives on the consolidated statements of income for the fiscal years ended September 30, 2018 , 2017 and 2016 was as follows. Amount of Gain (Loss) Recognized in Income Fiscal Years Ended September 30, Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Statements of Income 2018 2017 2016 (dollars in thousands) Interest rate swaps Net realized and unrealized gain on derivatives $ 44,596 $ 49,900 $ (48,658 ) Mortgage loan commitments Net realized and unrealized gain on derivatives (28 ) (48 ) 66 Mortgage loan forward sale contracts Net realized and unrealized gain on derivatives 28 48 (66 ) |
The Fair Value Option For Certa
The Fair Value Option For Certain Loans | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
The Fair Value Option For Certain Loans | The Fair Value Option For Certain Loans The Company has elected to measure certain long-term loans at fair value to assist in managing the interest rate risk for longer-term loans. This fair value option was elected upon the origination of these loans. Interest income is recognized in the same manner as interest on non-fair value loans. See Note 24 for additional disclosures regarding the fair value of the fair value option loans. Long-term loans for which the fair value option has been elected had a net unfavorable difference between the aggregate fair value and the aggregate unpaid loan principal balance and written loan commitment amount of approximately $34.8 million at September 30, 2018 and a net favorable difference of approximately $8.8 million at September 30, 2017 . The total unpaid principal balance of these long-term loans was approximately $900.2 million and $1.01 billion at September 30, 2018 and 2017 , respectively. The fair value of these loans is included in total loans in the consolidated balance sheets and are grouped with commercial real estate, agricultural and commercial non-real estate loans in Note 5. As of September 30, 2018 and 2017 , there were loans with a fair value of $30.9 million and $14.7 million , respectively, which were greater than 90 days past due or in nonaccrual status with an unpaid principal balance of $34.7 million and $17.0 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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Noninterest Income Total Changes in Fair Value Noninterest Income Total Changes in Fair Value Noninterest Income Total Changes in Fair Value (dollars in thousands) Long-term loans $ (45,407 ) $ (45,407 ) $ (65,231 ) $ (65,231 ) $ 26,314 $ 26,314 For long-term loans at September 30, 2018 , 2017 and 2016 , approximately $0.2 million , $0.9 million and $1.6 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, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company's carrying amount of goodwill was $739.0 million for the fiscal years ended September 30, 2018 and 2017 , respectively. The Company conducts a goodwill impairment test at least annually, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value below its carrying amount. See "Note 1. Nature of Operations and Summary of Significant Accounting Policies ," for additional information regarding the Company's goodwill accounting policy. For the fiscal years ended September 30, 2018 , 2017 and 2016 , 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, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposits and Other Intangibles | 13. Core Deposits and Other Intangibles The following table presents a summary of intangible assets subject to amortization as of September 30, 2018 and 2017 . Core Deposit Intangible Brand Other Total (dollars in thousands) As of September 30, 2018 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (2,610 ) (5,828 ) (191 ) (8,629 ) Net intangible assets $ 4,729 $ 2,636 $ 347 $ 7,712 As of September 30, 2017 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (1,579 ) (5,264 ) (124 ) (6,967 ) Net intangible assets $ 5,760 $ 3,200 $ 414 $ 9,374 Amortization expense of intangible assets was $1.7 million , $2.4 million and $3.3 million for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in subsequent fiscal years is as follows. Fiscal year Amount (dollars in thousands) 2019 $ 1,538 2020 1,430 2021 1,334 2022 1,249 2023 967 2023 and thereafter 1,194 Total $ 7,712 |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table presents the composition of deposits as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Noninterest-bearing demand $ 1,842,704 $ 1,856,126 Interest-bearing demand 6,043,717 5,847,432 Time deposits, $250,000 or more 383,868 273,365 Time deposits, less than $250,000 1,463,210 1,000,690 Total $ 9,733,499 $ 8,977,613 At September 30, 2018 and 2017 , the Company had $600.2 million and $294.4 million , respectively, in brokered deposits. As a result of the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act in May 2018, most reciprocal deposits are no longer treated as brokered deposits and are now included with core commercial deposits. The brokered deposits previously noted reflect the reclassification of approximately $431.0 million of reciprocal deposits to commercial deposits at September 30, 2017 . At September 30, 2018 , the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2019 . Fiscal year Amount (dollars in thousands) 2019 $ 1,245,059 2020 433,142 2021 95,231 2022 47,045 2023 25,369 2024 and thereafter 1,232 Total $ 1,847,078 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Sep. 30, 2018 | |
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 $109.9 million and $139.3 million and fair value of approximately $104.6 million and $137.4 million at September 30, 2018 and 2017 , respectively. In most cases, in alignment with the repurchase agreements in place with our customers, the Company over-collateralizes the repurchase agreements at 102% of total funds borrowed to protect the purchaser from changes in market value. Additionally, the Company utilizes held-in-custody procedures to ensure the securities sold under repurchase agreements are unencumbered. The following tables present the gross obligation by the class of collateral pledged and the remaining contractual maturity of the agreements at September 30, 2018 and 2017 . September 30, 2018 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 90,907 — — — 90,907 Total repurchase agreements $ 90,907 $ — $ — $ — $ 90,907 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 |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 12 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings The following table presents the FHLB advances and other borrowings consist of the following at September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Short-term borrowings: Notes payable to FHLB, interest rates from 1.25% to 1.27% $ — $ 512,200 FHLB fed funds advance, interest rate of 2.37% and matured in October 2018 100,000 75,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.38% to 3.66% and maturity dates from March 2020 to July 2023, collateralized by real estate loans, with various call dates at the option of the FHLB 175,000 56,000 Total 275,000 643,200 Fair value adjustment ¹ — 14 Total FHLB advances and other borrowings $ 275,000 $ 643,214 1 Adjustment reflects the fair value adjustments related to the FHLB advances and notes payable assumed as part of the HF Financial acquisition. As of September 30, 2018 and 2017 , the Company had a borrowing capacity of $1.59 billion and $1.89 billion , respectively, with the FRB Discount Window. Principal balances of loans pledged to FRB Discount Window to collateralize the borrowing totaled $1.89 billion at September 30, 2018 and $2.55 billion at September 30, 2017 . The Company has secured this line for contingency funding. As of September 30, 2018 and 2017 , based its collateral pledged, the additional borrowing capacity of the Company with the FHLB was $1.82 billion and $1.55 billion , respectively. Principal balances of loans pledged to the FHLB to collateralize notes payable totaled $3.95 billion and $3.71 billion at September 30, 2018 and 2017 , respectively. In fiscal year 2018, the Company purchased a letter of credit from the FHLB for $150.0 million which is pledged as collateral on public deposits. This letter of credit is committed until January 29, 2019 . As of September 30, 2018 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) 2019 $ 100,000 2020 150,000 2021 — 2022 — 2023 25,000 2023 and thereafter — Total $ 275,000 |
Subordinated Debentures and Sub
Subordinated Debentures and Subordinated Notes Payable | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Subordinated Notes Payable | Subordinated Debentures and Subordinated Notes Payable Junior Subordinated Deferrable Interest Debentures The Company has seven which were created or assumed as part of prior acquisitions that as of September 30, 2018 have issued Company Obligated Mandatorily Redeemable Preferred Securities ("Preferred Securities"). These trusts are described herein. The sole assets of the trusts are junior subordinated deferrable interest debentures ("Debentures") issued by the Company (or assumed as part of the HF Financial and Sunstate Bank acquisitions) with interest, maturity, and distribution provisions similar in term to the respective Preferred Securities. Additionally, to the extent interest payments are deferred on the Debentures, payment on the Preferred Securities will be deferred for the same period. The trusts’ ability to pay amounts due on the Preferred Securities is solely dependent upon the Company making payment on the related Debentures. The Company’s obligation under the Debentures and relevant trust agreements constitute a full, irrevocable, and unconditional guarantee on a subordinated basis by it of the obligations of the trusts under the Preferred Securities. For regulatory purposes the Debentures qualify as elements of capital. As of September 30, 2018 and 2017 , $73.6 million and $73.5 million , respectively, of Debentures, net of fair value adjustment, were eligible for treatment as Tier 1 capital. The Company caused to be issued 22,400 shares, $1,000 par value, of Preferred Securities of Great Western Statutory Trust IV on December 17, 2003 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 285 basis points. Interest Payment Dates are March 17 , June 17 , September 17 and December 17 of each year, beginning March 17, 2004 and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid distributions must be paid. The Debentures will be redeemed 30 years from the issuance date; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole, but not in part, at the Special Redemption Date, at a premium as defined by the Indenture if a "Special Event" occurs prior to December 17, 2008 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after December 17, 2008 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid distributions to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Proceeds from the issue were used for general corporate purposes. The Company caused to be issued 30,000 shares, $1,000 par value, of Preferred Securities of GWB Capital Trust VI on March 10, 2006 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 148 basis points. Interest Payment dates are December 15 , March 15 , June 15 , and September 15 of each year, beginning June 15, 2006 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed March 15, 2036 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole, but not in part, at any Interest Payment Date, at a premium as defined by the Indenture if a "Special Event" occurs prior to March 15, 2007 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after March 15, 2011 , subject to the Company receiving approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Proceeds from the issue were used for general corporate purposes including redemption of the 9.75% Preferred Securities of GWB Capital Trust II. The Company acquired the Sunstate Bancshares Trust II in the acquisition of Sunstate Bank. Sunstate Bancshares caused to be issued 2,000 shares, $1,000 par value, of Preferred Securities of Sunstate Bancshares Trust II on June 1, 2005 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 185 basis points. Interest Payment dates are March 15 , June 15 , September 15 , and December 15 of each year, beginning September 15, 2005 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed June 15, 2035 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to June 15, 2010 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after June 15, 2010 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust III in the acquisition of HF Financial. HF Financial Corp. caused to be issued 5,000 shares, $1,000 par value, of Preferred Securities of HFB Trust III on December 19, 2002 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 335 basis points. Interest Payment dates are January 7 , April 7 , July 7 , and October 7 of each year, beginning April 7, 2003 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed January 7, 2033 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to January 7, 2008 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after January 7, 2008 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust IV in the acquisition of HF Financial. HF Financial Corp. caused to be issued 7,000 shares, $1,000 par value, of Preferred Securities of HFB Trust IV on September 25, 2003 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 310 basis points. Interest Payment dates are January 8 , April 8 , July 8 , and October 8 of each year, beginning January 8, 2004 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed October 8, 2033 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to October 8, 2008 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after October 8, 2008 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust V in the acquisition of HF Financial. HF Financial Corp. caused to be issued 10,000 shares, $1,000 par value, of Preferred Securities of HFB Trust V on December 7, 2006 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 183 basis points. Interest Payment dates are March 1 , June 1 , September 1 , and December 1 of each year, beginning March 1, 2007 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed March 1, 2037 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a Special Event, at a premium as defined by the Indenture if a "Special Event" occurs prior to March 1, 2012 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after March 1, 2012 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. The Company acquired the HFB Trust VI in the acquisition of HF Financial. HF Financial Corp. caused to be issued 2,000 shares, $1,000 par value, of Preferred Securities of HFB Trust VI on July 5, 2007 , through a private placement. The distribution rate is set quarterly at three-month LIBOR plus 165 basis points. Interest Payment dates are January 1 , April 1 , July 1 , and October 1 of each year, beginning October 1, 2007 , and are payable in arrears. The Company may, at one or more times, defer interest payments on the related Debentures for up to 20 consecutive quarters following suspension of dividends on all capital stock. At the end of any deferral period, all accumulated and unpaid interest must be paid. The Debentures will be redeemed October 1, 2037 ; however, subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures, in whole or in part, at any time, within 90 days following the occurrence of a "Special Event", at a premium as defined by the Indenture if a "Special Event" occurs prior to October 1, 2012 . A "Special Event" means any Capital Treatment Event, an Investment Company Event, or a Tax Event. On or after October 1, 2012 , subject to the Company receiving prior approval of the Federal Reserve, if required, the Company has the right to redeem the Debentures at the Redemption Price, in whole or in part, on an Interest Payment Date. The Redemption Price is $1,000 per Preferred Security plus any accrued and unpaid interest to the date of redemption. Holders of the Preferred Securities have no voting rights. The Preferred Securities are unsecured and rank junior in priority of payment to all of the Company’s senior indebtedness and senior to the Company’s common and preferred stock. Relating to the trusts, the Company held as assets $2.5 million in common shares at September 30, 2018 and 2017 , 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, 2018 , 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 , or the date of earlier redemption, and then from August 15, 2020 to the stated maturity date or earlier redemption, the notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 3.15% , payable quarterly on each November 15 , February 15 , April 15 and August 15 . The notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Company's subsidiary bank. The Company may elect to redeem the notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after August 15, 2020 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of bankruptcy, insolvency or reorganization. Unamortized debt issuance costs related to these notes, which are included in Subordinated Debentures and Subordinated Notes Payable, totaled $0.1 million and $0.2 million at September 30, 2018 and 2017 , respectively. Proceeds from the private placement of subordinated notes repaid outstanding subordinated debt. The following table presents the subordinated debentures and subordinated notes payable at September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Amount Outstanding Common Shares Held in Other Assets Amount Outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to non-consolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR 30,928 928 30,928 928 SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR 2,062 62 2,062 62 HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR 5,155 155 5,155 155 HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR 7,217 217 7,217 217 HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR 5,310 310 5,310 310 HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR 2,155 155 2,155 155 Total junior subordinated debentures payable 75,920 $ 2,520 75,920 $ 2,520 Less: fair value adjustment ¹ (2,317 ) (2,409 ) Total junior subordinated debentures payable, net of fair value adjustment 73,603 73,511 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (135 ) (209 ) Total subordinated notes payable 34,865 34,791 Total subordinated debentures and subordinated notes payable $ 108,468 $ 108,302 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | provision for income taxes charged to operations consists of the following for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Currently paid or payable Federal $ 42,261 $ 56,171 $ 51,749 State 10,556 10,639 8,677 Total 52,817 66,810 60,426 Deferred tax expense Federal 20,205 2,477 (1,513 ) State 1,097 $ 154 $ (50 ) Total 21,302 2,631 (1,563 ) Total provision for income taxes $ 74,119 $ 69,441 $ 58,863 The income tax provision differs from the amount of income tax determined by applying a blended U.S. federal income tax rate of 24.5% for fiscal year 2018 and 35% for fiscal years 2017 and 2016 to pretax income due to the following. Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Income tax expense computed at the statutory rate $ 56,915 $ 74,979 $ 63,041 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 8,795 7,015 5,608 Tax exempt interest income (5,778 ) (7,973 ) (7,534 ) Tax benefit of stock-based compensation plans (424 ) (2,153 ) — Impact of enacted federal income tax rate reduction 13,709 — — Other 902 (2,427 ) (2,252 ) Income tax expense, as reported $ 74,119 $ 69,441 $ 58,863 Net deferred tax assets (liabilities) consist of the following components at September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Deferred tax assets: Allowance for loan and lease losses $ 15,709 $ 23,730 Compensation 2,577 6,227 Securities available for sale 10,305 3,413 Other real estate owned 325 763 Core deposit intangible and other fair value adjustments 3,677 6,058 Excess tax basis of FDIC indemnification asset and clawback liability 3,633 4,563 Excess tax basis of loans acquired over carrying value 3,669 9,417 Other reserves 2,787 4,406 Other 5,711 6,922 Total deferred tax assets 48,393 65,499 Deferred tax liabilities: Goodwill and other intangibles (11,567 ) (13,784 ) Premises and equipment (6,248 ) (8,828 ) Other (446 ) (487 ) Total deferred tax liabilities (18,261 ) (23,099 ) Net deferred tax assets $ 30,132 $ 42,400 At September 30, 2018 the Company had an income tax receivable from the IRS of $3.5 million , which is included in other assets on the consolidated balance sheets. 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. 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 2014. On December 22, 2017 , the Tax Reform Act was enacted into law. Beginning in 2018 , the Tax Reform Act reduced the federal tax rate for corporations from 35% to 21% and changed or limited certain tax deductions. Because of the Company's September 30 fiscal year end, a blended statutory rate of 24.5% was applied to all net income before taxes generated during the current fiscal year. The new blended statutory rate reduced the provision for income taxes by approximately $19.7 million for the fiscal year ended September 30, 2018 . Another result of the lower corporate tax rate was the Company's recording of a $13.6 million revaluation adjustment in the first quarter, reducing net deferred tax assets and increasing the provision for income taxes. Differences between the actual impact of revaluing deferred taxes for the full fiscal year and our preliminary estimate were immaterial. The Company adopted new accounting guidance in the second quarter of fiscal year 2018 that allowed reclassification of $2.4 million in stranded tax effects that related to a change in the federal tax rate from accumulated other comprehensive income to retained earnings. The Bank's effective tax rate for the fiscal years ended September 30, 2018 and 2017 was 31.9% and 32.4% , respectively. Excluding the nonrecurring deferred taxes adjustment related to federal tax reform, the effective tax rate for September 30, 2018 and 2017 were 26.1% and 32.4% , respectively. Management has determined a valuation reserve is not required for the deferred tax assets as of September 30, 2018 and 2017 because it is more-likely-than-not these assets could be realized through future reversals of existing taxable temporary differences, and future taxable income. Uncertain tax positions were not significant at September 30, 2018 or 2017 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Profit Sharing Plan The Company participates in a multiple employer 401(k) profit sharing plan ("401(k) Plan"). All employees are eligible to participate, beginning with the first day of the month coincident with or immediately following the completion of one 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 $5.7 million , $5.3 million and $ 4.7 million to the 401(k) Plan for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Defined Benefit Plan The Company acquired a non-contributory (cash balance) defined benefit pension plan ("Pension Plan") from HF Financial which covers former employees of HF Financial and its wholly-owned subsidiaries. The Pension Plan was frozen on July 1, 2015 which eliminated future contributions for qualified individuals. On November 27, 2017 , the Company's Board of Directors voted to terminate the Pension Plan, effective February 1, 2018 . In order to settle its liabilities under the Pension Plan, the Company offered participants the option to receive either an annuity purchased from an insurance carrier or a lump-sum cash payment. Total benefit payments paid by the Company were $5.5 million as part of the Pension Plan termination. As of September 30, 2018 , the transfer of all Pension Plan assets, liabilities and administrative responsibilities was completed. The following table sets forth the pension plan funded status, using the valuation date of September 30, 2018 . September 30, 2018 2017 (dollars in thousands) Changes in benefit obligations: Benefit obligations, beginning of period $ 5,372 6,355 Service cost 53 50 Interest cost 111 223 Benefits paid (5,507 ) (803 ) Assumption changes — (286 ) Actuarial loss (29 ) (167 ) Benefit obligations, end of period $ — $ 5,372 Changes in plan assets: Fair value of plan assets, beginning of period $ 3,093 $ 3,359 Actual return on plan assets 2 277 Company contributions 2,412 260 Benefits paid (5,507 ) (803 ) Fair value of plan assets, end of period $ — $ 3,093 Funded status ¹ $ — $ (2,279 ) Amounts recognized in accumulated other comprehensive income consists of net gain (loss) $ (329 ) $ 329 Accumulated benefit obligation $ — $ 5,372 ¹ Amounts included in accrued expenses and 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, 2018 , 2017 and 2016 for the defined benefit plan is presented below. Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Net periodic benefit cost Service cost $ 53 $ 50 $ 21 Interest cost 111 223 176 Expected return on plan assets — (258 ) (190 ) Amortization of prior losses — — 50 Net periodic benefit cost $ 164 $ 15 $ 57 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net gain (loss) (329 ) 329 — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (493 ) $ 314 $ (57 ) The weighted-average assumptions used to determine benefit obligations are as follows as of September 30, 2018 and 2017 . September 30, 2018 2017 Discount rate - pre-retirement ¹ N/A 3.83 % Discount rate - post-retirement ¹ N/A 3.83 % Rate of compensation increase 1, 2 N/A N/A ¹ Effective February 1, 2018, the plan was terminated. ² 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, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Discount rate - pre-retirement ¹ N/A 3.83 % 3.57 % Discount rate - post-retirement ¹ N/A 3.83 % 3.57 % Rate of compensation increase ¹ N/A 4.00 % 4.00 % Expected long-term return on plan assets ¹ N/A 8.00 % 8.00 % ¹ Effective February 1, 2018, the plan was terminated. Prior to termination of the Plan on February 1, 2018 as described above, all plan assets were 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 As of September 30, 2018 (dollars in thousands) Cash and cash equivalents — — % Total pension plan assets $ — — % As of September 30, 2017 Cash and cash equivalents 3,093 100.00 % Total pension plan assets $ 3,093 100.00 % The following table shows the fair values of the Company's pension plan assets by asset category at September 30, 2018 and 2017 . Information about the valuation techniques and inputs used to measure fair value is provided in "Note 24. Fair Value Measurements ". Fair Value Level 1 Level 2 Level 3 As of September 30, 2018 (dollars in thousands) Cash and cash equivalents $ — $ — $ — $ — Total pension plan assets $ — $ — $ — $ — As of September 30, 2017 Cash and cash equivalents $ 3,093 $ 3,093 $ — $ — Total pension plan assets $ 3,093 $ 3,093 $ — $ — |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
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 ("2014 Plan"), the Great Western Bancorp, Inc. 2014 Non-Employee Director Plan ("2014 Director Plan"), and the Great Western Bancorp, Inc. Executive Incentive Compensation Plan ("Bonus Plan"), collectively ("the Plans"), which provide for the issuance of restricted share units and performance based share units to certain officers, employees and directors of the Company. On February 22, 2018 , our stockholders approved amendments to the 2014 Plan and the 2014 Director Plan to increase the number of shares available for future grants under the Plans. The Plans were primarily established to enhance the Company’s ability to attract, retain and motivate employees. The Company’s Board of Directors, the Compensation Committee of the Board of Directors ("Compensation Committee"), or executive management upon delegation of the Compensation Committee has exclusive authority to select the employees and others, including directors, to receive the awards and to establish the terms and conditions of each award made pursuant to the Company’s stock-based compensation plans. Stock units issued under the Company’s restricted and performance based stock plans may not be sold or otherwise transferred until the vesting period has been met and, if applicable, performance objectives have been obtained. During the vesting periods, participants do not have voting rights and dividends are accumulated until the time upon which the award vests. Upon specified events, as defined in the Plans, stock unit awards that have not vested and/or performance hurdles that have not been met will be forfeited. Based on the substantive terms of each award, restricted and performance-based awards are classified as equity awards and accounted for under the treasury stock method. The fair value of equity-classified awards is based on the market price of the stock on the measurement date and is amortized as compensation expense on a straight-line basis over the vesting or performance period. Stock compensation is recognized based on the number of awards to vest using actual forfeiture amounts. For performance-based stock awards, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance targets to determine the amount of compensation expense to be recognized. The estimate is reevaluated quarterly and total compensation expense is adjusted for any change in the current period. Stock-based compensation expense is included in salaries and employee benefits expense in the consolidated statements of income. For the fiscal years ended September 30, 2018 , 2017 and 2016 stock compensation expense was $5.5 million , $6.5 million and $3.5 million respectively. Related income tax benefits recognized for the fiscal years ended September 30, 2018 , 2017 and 2016 were $1.7 million , $2.5 million and $1.3 million , respectively. The following is a summary of the Plans’ restricted share and performance-based stock award activity as of September 30, 2018 and 2017 . The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. September 30, 2018 September 30, 2017 September 30, 2016 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 180,337 $ 33.06 160,335 $ 26.89 80,446 $ 18.18 Granted 89,376 41.07 90,363 39.35 113,543 30.95 Vested (97,682 ) 32.11 (68,293 ) 26.97 (25,729 ) 18.11 Forfeited (8,744 ) 35.99 (2,068 ) 30.91 (7,925 ) 25.09 Canceled — — — — — — Restricted shares, end of period 163,287 $ 37.86 180,337 $ 33.06 160,335 $ 26.89 Vested, but not issuable at end of period 39,514 $ 32.90 29,287 $ 30.05 24,480 $ 26.14 Performance Shares Performance shares, beginning of fiscal year 133,604 $ 33.39 236,185 $ 20.28 211,026 $ 18.00 Granted 53,682 29.52 137,612 39.43 43,371 30.78 Vested (7,017 ) 18.00 (235,055 ) 18.00 (55 ) 18.00 Forfeited (5,073 ) 37.75 (5,138 ) 19.80 (18,157 ) 18.83 Canceled — — — — — — Performance shares, end of period 175,196 $ 36.29 133,604 $ 33.39 236,185 $ 20.28 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 — $ — As of September 30, 2018 , there was $5.0 million of unrecognized compensation cost related to non-vested restricted stock awards expected to be recognized over a period of 2.2 years. The fair value of the vested awards was $1.9 million , $1.4 million and $0.8 million at September 30, 2018 , 2017 and 2016 , respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 . As of September 30, 2018 , 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, 2018 and 2017 , the Bank met these requirements. Capital amounts and ratios are presented in the following table. Actual For Capital Adequacy To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2018 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,208,852 12.0 % $ 604,637 6.0 % N/A N/A Bank 1,168,110 11.6 % 604,467 6.0 % $ 805,957 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,308,875 13.0 % 806,182 8.0 % N/A N/A Bank 1,233,133 12.2 % 805,957 8.0 % 1,007,446 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,208,852 10.7 % 451,939 4.0 % N/A N/A Bank 1,168,110 10.3 % 452,404 4.0 % 565,505 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,135,249 11.3 % 453,478 4.5 % N/A N/A Bank $ 1,168,110 11.6 % $ 453,351 4.5 % $ 654,840 6.5 % 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 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 is as follows. September 30, 2018 2017 (dollars in thousands) Commitments to extend credit $ 2,344,550 $ 2,515,653 Letters of credit 69,613 70,186 Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The credit and collateral policy for commitments and letters of credit is comparable to that for granting loans. Asset Sales The Bank regularly transfers financial assets as part of its mortgage banking activities. Transfers are recorded as sales when the criteria for surrender of control are met. The Bank has provided guarantees in connection with the sale of loans and has assumed a similar obligation in its acquisitions. The guarantees are generally in the form of asset buy back or make whole provisions that are triggered upon a credit event and remain in effect until the loans are collected. The maximum potential future payment related to these guarantees is not readily determinable because the Company’s obligation under these agreements depends on the occurrence of future events. There were $3.3 million and $2.3 million loans repurchased for the fiscal year ended September 30, 2018 and 2017 , respectively. Incurred losses related to these repurchased loans and guaranteed loans as of September 30, 2018 and 2017 , are not significant. Financial Instruments with Concentration of Credit Risk by Geographic Location A substantial portion of the Company’s customers’ ability to honor their contracts is dependent on the economy in Nebraska, northern Missouri, northeastern Kansas, Iowa, southeastern Arizona, central Colorado, southeastern North Dakota, central Minnesota and South Dakota. Although the Company’s loan portfolio is diversified, there is a relationship in these regions between the agricultural economy and the economic performance of loans made to non-agricultural customers. The concentration of credit in the regional agricultural economy is taken into consideration by management in determining the allowance for loan and lease losses. Lease Commitments The Company leases several branch locations under terms of operating lease agreements expiring through March 31, 2034 . The Company has the option to renew these leases for periods that range from 1 to 14 years . Total rent expense for these leases for the fiscal years ended September 30, 2018 , 2017 and 2016 , was $5.4 million , $5.4 million and $5.1 million , respectively. Approximate future minimum rental payments for operating leases in excess of one year in subsequent fiscal years are as follows. Fiscal year Amount (dollars in thousands) 2019 $ 5,156 2020 4,640 2021 3,299 2022 2,753 2023 2,192 2024 and thereafter 5,403 Total $ 23,443 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, 2018 | |
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, 2018 and 2017 . There was no interest paid to related parties for each of the fiscal years ended September 30, 2018 , 2017 and 2016 . NAB 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 occurred December 2017. The liability included in accrued expenses and other liabilities on the consolidated balance sheets was $0.1 million at both September 30, 2018 and 2017 . The expense related to the restricted shares was negligible for the fiscal year ended September 30, 2018 , and $0.1 million for each of the fiscal years ended September 30, 2017 and 2016 , and was included within salaries and employee benefits on the consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Level 1 inputs are considered to be the most transparent and reliable and Level 3 inputs are considered to be the least transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (Level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the actual financial instrument or of the underlying collateral. Although in some instances, third party price indications may be available, limited trading activity can challenge the observability of these quotations. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Securities Available for Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows and classified as Level 2 securities. Level 2 securities include mortgage-backed, states and political subdivisions, and other securities. Where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Level 3 securities were immaterial at September 30, 2018 and 2017 . Interest Rate Swaps and Loans Interest rate swaps are valued by the Company's Swap Dealers using cash flow valuation techniques with observable market data inputs. The fair value of loans accounted for under the fair value option represents the net carrying value of the loan, plus the equal and opposite amount of the value of the swap needed to offset the interest rate risk and an adjustment for credit risk based on our assessment of existing market conditions for the specific portfolio of loans. This is used due to the strict prepayment penalties put in the loan terms to cover the cost of exiting the interest rate swap of the loans in the case of early prepayment or termination. The adjustment for credit risk on loans accounted for under the fair value option is not significant to the overall fair value of the loans. The fair values estimated by the Company's Swap Dealers use interest rates that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The Company has entered into Collateral Agreements with its Swap Dealers and Futures Clearing Merchant which entitle it to receive collateral to cover market values on derivatives which are in asset position, thus a credit risk adjustment on interest rate swaps is not warranted. The Company regularly enters into interest rate lock commitments on mortgage loans to be held for sale with corresponding forward sales contracts related to these interest rate lock commitments, the fair values of which are calculated by applying observable market values from Fannie Mae TBA pricing to each interest rate lock commitment and forward sales contract, therefore, are classified within Level 2 of the valuation hierarchy. The Company also has back-to-back swaps with loan customers, with corresponding swaps with an outside third party in exact offsetting terms. Loan Servicing Rights Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts (Level 3), when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against market data (Level 3). The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and 2017 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ 167,172 $ — $ — Mortgage-backed securities 1,149,707 — 1,149,707 — States and political subdivision securities 67,775 — 66,805 970 Other 996 — 996 — Total securities available for sale $ 1,385,650 $ 167,172 $ 1,217,508 $ 970 Derivatives-assets $ 1,911 $ — $ 1,911 $ — Derivatives-liabilities 2,188 — 2,188 — Fair value loans 865,386 — 865,386 — Loan servicing rights 3,087 — — 3,087 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 Other 1,034 — 1,034 — Total securities available for sale $ 1,367,960 $ 228,603 $ 1,138,288 $ 1,069 Derivatives-assets $ — $ — $ — $ — Derivatives-liabilities 17,155 — 17,155 — Fair value loans 1,016,576 — 1,016,576 — Loan servicing rights 4,074 — — 4,074 The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Other securities available for sale Balance, beginning of period $ 1,069 $ 1,315 $ 1,835 Additions 149 — 15 Principal paydown (248 ) (246 ) (235 ) Realized and unrealized (loss) ¹ — — (300 ) Balance, end of period $ 970 $ 1,069 $ 1,315 Loan servicing rights Balance, beginning of period $ 4,074 $ 5,781 $ — Additions — — 6,573 Realized and unrealized (loss) ² (987 ) (1,707 ) (792 ) Balance, end of period $ 3,087 $ 4,074 $ 5,781 1 Realized and unrealized (loss) related to other securities available for sale are reported as a a component of net gain (loss) on sale of securities on the consolidated statements of income. 2 Realized and unrealized (loss) related to loan servicing rights are reported as a component of mortgage banking income, net on the consolidated statements of income. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Other Repossessed Property Other repossessed property consists of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other repossessed assets. Other repossessed property is recorded initially at fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically, and the assets may be marked down further to fair value less selling costs, reflecting a valuation allowance. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods. These measurements are classified as Level 3. Impaired Loans (Collateral Dependent) Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of the impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor, if necessary, to the appraised value and including costs to sell. Because many of these inputs are not observable, the measurements are classified as Level 3. Mortgage Loans Held for Sale Fair value of mortgage loans held for sale is based on either quoted prices for the same or similar loans, or values obtained from third parties, or are estimated for portfolios of loans with similar financial characteristics and are therefore considered a Level 2 valuation. Property Held for Sale This real estate property is carried in premises and equipment as property held for sale at fair value based upon the transactional price if available, or the appraised value of the property. The following tables present the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and 2017 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2018 Other repossessed property $ 22,225 $ — $ — $ 22,225 Impaired loans 188,017 — — 188,017 Loans held for sale, at lower of cost or fair value 5,456 — 5,456 — Property held for sale 1,104 — — 1,104 As of September 30, 2017 Other repossessed property $ 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 — Property held for sale 5,147 — — 5,147 The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2018 were as follows. Fair Value of Assets / (Liabilities) at September 30, 2018 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 22,225 Appraisal value Property specific adjustment N/A N/A Impaired loans 188,017 Appraisal value Property specific adjustment N/A N/A Property held for sale 1,104 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, 2018 and 2017 , are as follows. September 30, 2018 September 30, 2017 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 298,696 $ 298,696 $ 360,396 $ 360,396 Loans, net excluding fair valued loans, loans held for sale and impaired loans Level 3 8,357,065 8,231,829 7,881,018 7,798,134 Accrued interest receivable Level 2 58,948 58,948 53,176 53,176 Cash surrender value of life insurance policies Level 2 30,461 30,461 29,619 29,619 FHLB stock Level 2 22,533 22,533 37,551 37,551 Liabilities Deposits Level 2 $ 9,733,499 $ 9,734,971 $ 8,977,613 $ 8,978,926 FHLB advances and other borrowings Level 2 275,000 275,797 643,214 645,421 Securities sold under repurchase agreements Level 2 90,907 90,907 132,636 132,636 Accrued interest payable Level 2 8,773 8,773 4,405 4,405 Subordinated debentures and subordinated notes payable Level 2 108,468 107,841 108,302 108,293 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 short-term 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 and are categorized as Level 2 fair value measurement. FHLB stock: The carrying amount of FHLB stock approximates its fair value as it can only be redeemed with the FHLB at par value. FHLB stock has been categorized as a Level 2 fair value measurement. Deposits: The estimated fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand deposits, 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 short-term 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, 2018 | |
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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands, except per share data) Net income $ 157,916 $ 144,786 $ 121,253 Weighted average common shares outstanding 58,938,169 58,770,708 56,563,438 Dilutive effect of stock based compensation 193,481 258,674 165,912 Weighted average common shares outstanding for diluted earnings per share calculation 59,131,650 59,029,382 56,729,350 Basic earnings per share $ 2.68 $ 2.46 $ 2.14 Diluted earnings per share $ 2.67 $ 2.45 $ 2.14 The Company had no shares of unvested performance stock as of September 30, 2018 and 2017 which were not included in the computation of diluted earnings per common share because performance conditions for vesting had not been met. The Company had no shares of anti-dilutive stock awards outstanding as of September 30, 2018 and 2017 . |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements Parent company only financial information for Great Western Bancorp, Inc. is summarized as follows: Condensed Balance Sheets (Dollars in Thousands) September 30, 2018 2017 (dollars in thousands) Assets Cash and cash equivalents $ 72,924 $ 15,004 Investment in subsidiaries 1,873,422 1,839,293 Net deferred tax assets 1,489 1,502 Other assets 2,056 8,515 Total assets $ 1,949,891 $ 1,864,314 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,468 $ 108,302 Accrued expenses and other liabilities 872 1,012 Total liabilities 109,340 109,314 Stockholders’ equity Common stock 589 588 Additional paid-in capital 1,318,457 1,314,039 Retained earnings 553,014 445,747 Accumulated other comprehensive income (31,509 ) (5,374 ) Total stockholders’ equity 1,840,551 1,755,000 Total liabilities and stockholders’ equity $ 1,949,891 $ 1,864,314 Condensed Statements of Comprehensive Income (Dollars in Thousands) Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Income Dividends from subsidiary bank $ 111,159 $ 62,470 $ 70,582 Dividends on securities 51 123 223 Other 103 62 48 Total income 111,313 62,655 70,853 Expenses Interest on subordinated debentures and subordinated notes payable 5,040 4,464 3,737 Salaries and employee benefits 5,849 6,847 3,723 Professional fees 1,038 631 378 Acquisition expenses — — 1,010 Other 2,456 2,204 2,512 Total expense 14,383 14,146 11,360 Income before income tax and equity in undistributed net income of subsidiaries 96,930 48,509 59,493 Income tax benefit (3,075 ) (8,147 ) (3,414 ) Income before equity in undistributed net income of subsidiaries 100,005 56,656 62,907 Equity in undistributed net income of subsidiaries 57,911 88,130 58,346 Net income $ 157,916 $ 144,786 $ 121,253 Condensed Statements of Cash Flows (Dollars in Thousands) Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Operating Activities Net income $ 157,916 $ 144,786 $ 121,253 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 166 165 36 Gain on redemption of subordinated debentures — (111 ) — Stock-based compensation 4,419 6,810 3,517 Deferred income taxes 13 (1,796 ) 3 Changes in: Other assets 6,459 (823 ) (190 ) Accrued interest and other liabilities (140 ) 286 225 Equity in undistributed net income of subsidiaries (57,911 ) (88,130 ) (58,346 ) Net cash provided by operating activities 110,922 61,187 66,498 Investing activities Business acquisitions, net of cash acquired — — (30,832 ) Net cash used in investing activities — — (30,832 ) Financing Activities Redemption of subordinated debentures — (3,625 ) — Common stock repurchased — (5,605 ) — Dividends paid (53,002 ) (43,474 ) (31,419 ) Net cash used in financing activities (53,002 ) (52,704 ) (31,419 ) Net increase in cash and cash equivalents 57,920 8,483 4,247 Cash and cash equivalents, beginning of period 15,004 6,521 2,274 Cash and cash equivalents, end of period $ 72,924 $ 15,004 $ 6,521 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Segment Reporting | The "Segment Reporting" topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a regional bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized and does not allocate resources around discernible lines of business or geographies and prefers to work as an integrated unit to customize solutions for its customers, with business line and geographic emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment, which is consistent with the Company’s preparation of financial information that is evaluated regularly by management in deciding how to allocate resources and assess performance. |
Basis of Presentation | The accounting and reporting policies of the Company conform with 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 | Great Western Statutory Trust IV, GWB Capital Trust VI, Sunstate Bancshares Trust II, HF Financial Capital Trust III, HF Financial Capital Trust IV, HF Financial Capital Trust V and HF Financial Capital Trust VI are VIEs for which the Company is not the primary beneficiary. Accordingly, the accounts of these trusts are not included on the Company’s consolidated financial statements. Certain previously reported amounts have been reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates U.S. GAAP requires management makes estimates and assumptions that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Subsequent Events | The Company evaluated subsequent events through the date its consolidated financial statements were issued. Other than those events described above, there were no other material events that would require recognition on the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Business Combinations | The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 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 on the consolidated statements of income from the effective date of acquisition. Fair values are subject to refinement for up to a year after the closing date of an acquisition as information relative to closing date fair values becomes available. Adjustments recorded to the acquired assets and liabilities are applied prospectively in accordance with ASU 2015-16. |
Cash and Cash Equivalents | For purposes of the consolidated statements of cash flows, management has defined cash and cash equivalents to include cash on hand, amounts due from banks (including cash items in process of clearing), and amounts held at other financial institutions with an initial maturity of 90 days or less. |
Securities | 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 on 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 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 on the consolidated statements of income. |
Federal Home Loan Bank stock | Investments in the FHLB stock are restricted as to redemption and are carried at cost. Investments in FHLB stock are reviewed regularly for possible 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, usually 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 usually 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 agri-business banking customers to assist them in facilitating their risk management strategies. The fair value option was elected upon the origination or acquisition of these loans and written loan commitments. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon closing. The 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 makes commercial, agricultural, residential real estate, consumer and other loans to customers primarily in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota . The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Collateral held varies but includes accounts receivable, marketable securities, inventory, equipment, real estate, 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 residential real estate or consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of consumer loans. 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 and Reserve for 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 are inherently subjective. The Company considers the uncertainty related to certain industry sectors and the extent of credit exposure to specific borrowers within the portfolio. In addition, consideration is given to concentration risks associated with the various loan portfolios and current economic conditions that might impact the portfolio. The Company also considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry, or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes in unemployment rates, gross domestic product, and consumer bankruptcy filings. 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 on the consolidated statements of income. Past due status is monitored as an indicator of credit deterioration. Loans that are 90 days or more past due are put on nonaccrual status unless a repayment is eminent. Loans deemed to be uncollectible are charged off against the allowance for loan and lease losses. Recoveries of amounts previously charged-off are credited to the allowance for loan and lease losses. The allowance for loan and lease losses consist of reserves for probable losses that have been identified related to specific borrowing relationships that are individually evaluated for impairment ("specific reserve"), as well as probable losses inherent in our loan portfolio that are not specifically identified ("collective reserve"). The specific reserve relates to impaired loans. A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due (interest as well as principal) according to the contractual terms of the loan agreement. Specific reserves are determined on a loan-by-loan basis based on management’s best estimate of the Company's exposure, given the current payment status of the loan, the present value of expected payments, and the value of any underlying collateral. Impaired loans also include loans modified in troubled debt restructurings. Generally, the impairment related to troubled debt restructurings is measured based on the fair value of the collateral, less cost to sell, or the present value of expected payments relative to the unpaid principal balance. If the impaired loan is identified as collateral dependent, then the fair value of the collateral method of measuring the amount of the impairment is utilized. This method requires obtaining an independent appraisal of the collateral and reducing the appraised value by applying a discount factor to the appraised value, if necessary, and including costs to sell. Management’s estimate for collective reserves reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates primarily are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes. The 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 reversed. For acquired non-impaired 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 non-impaired 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 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 indemnification assets in other assets on the consolidated balance sheets 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 excess purchase price over the fair value of identifiable net assets of acquired companies. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets , the Company conducts a goodwill impairment test at least annually, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value below its carrying amount. In accordance with ASC 350-20, the Company can assess qualitative factors to determine whether it is more-likely-than-not the fair value of the reporting unit is less than its carrying amount. If the Company concludes based on the qualitative assessment that goodwill may be impaired, a quantitative one-step impairment test would then be applied. An impairment loss would be recognized for any excess of carrying value over fair value of the goodwill. Subsequent increases in goodwill would not be recognized on the consolidated financial statements. The Company performs its annual goodwill impairment evaluation as of July 1 on the basis of one reporting unit. For fiscal year 2018, the Company assessed qualitative factors to determine whether it was more-likely-than-not the fair value of the reporting unit was less than its carrying amount. In evaluating whether it was more-likely-than-not that the fair value of the reporting unit was less than its carrying amount, the Company assessed relevant events and circumstances, including macroeconomic conditions, industry and market considerations, overall financial performance, changes in the composition or carrying amount of assets and liabilities, the market price of the Company's common stock, and other relevant factors. No quantitative assessment was considered necessary. |
Core Deposits and Other Intangibles | Intangible assets consist of core deposits, brand intangible, customer relationships, and other intangibles. Core deposits represent the identifiable intangible value assigned to core deposit bases arising from acquired companies. Brand intangible represents the value associated with the Bank charter. Customer relationships intangible represents the identifiable intangible value assigned to customer relationships arising from acquired companies. Other intangibles represent contractual franchise arrangements under which the franchiser grants the franchisee the right to perform certain functions within a designated geographical area. Core deposits and other intangibles are recorded in other assets on the consolidated balance sheets. The methods and lives used to amortize intangible assets are as follows. Intangible Method Years Core deposit Straight-line or effective yield 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. |
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 other assets or other liabilities on the consolidated balance sheets and measured at fair value, with changes in fair value reported in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. Since each fixed rate loan is paired with an offsetting derivative contract, the impact to net income is minimized. The Company also has back-to-back swaps with loan customers where the Company enters into an interest rate swap with loan customers to provide a facility to mitigate the interest rate risk associated with offering a fixed rate and simultaneously enters into a swap with an outside third party that is matched in exact offsetting terms. The back-to-back swaps are recorded at fair value and recognized as other assets or other liabilities, depending on the rights or obligations under the contract, on the consolidated balance sheet, with changes in fair value reported in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. 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 and included in other assets or other liabilities on the consolidated balance sheets with changes in fair value offsetting each other in net realized and unrealized gain (loss) on derivatives on the consolidated statements of income. |
Stock Based Compensation | Restricted and performance-based stock units/awards are classified as equity awards and accounted for under the treasury stock method. Compensation expense for non-vested stock units/awards is based on the fair value of the award on the measurement date, which, for the Company, is the date of the grant and is recognized ratably over the vesting or performance period of the award. The fair value of non-vested stock units/awards is generally the market price of the Company's stock on the date of grant. The Company accounts for forfeitures on an actual basis. In fiscal year 2017, the Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employees Share Based Payments Accounting. The Company's consolidated financial statements include a reclassification from additional paid-in capital to provision for income taxes of $0.3 million and $0.0 million for the fiscal years ended September 30, 2017 and 2016 , respectively. |
Income Taxes | 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. On October 25, 2017, the Board of Directors adopted a provision to terminate the Plan effective February 1, 2018. As of September 30, 2018, the transfer of all Pension Plan assets, liabilities and administrative responsibilities was completed. No pension valuation was performed as of September 30, 2018. For the pension valuation performed as of September 30, 2017 , the defined benefit pension obligation and related costs were calculated using actuarial concepts and measurements. Three critical assumptions in determining benefit obligation measurements were mortality rates, the discount rate and the expected long-term rate of return on plan assets. Mortality rate assumptions were based on the RP-2014 mortality tables and the MP 2016 projection scales. The discount rate, which enabled the Company to state expected future benefit payments as a present value on the measurement date, was determined by utilizing the standard duration index from the Citi Pension Discount Curve and Liability Index. The expected long-term rate of return on defined benefit pension plan assets was based on the current asset allocation of the defined benefit pension plan, as well as historical and expected returns on each asset class. Other assumptions involved employee demographic factors such as retirement patterns and turnover. The Company recognized the over- or under-funded status of a plan as an other asset or other liability on 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 were recognized as a component of 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. The principal source of revenue is interest income from loans and investments. The Company also earns noninterest income from various banking and financial services offered to its customers. Certain specific policies related to noninterest income include the following: Service Charges on Deposit Accounts Service charges on deposit accounts are primarily fees related to customer overdrafts and non-sufficient funds, net of any refunded fees, and are recognized as transactions occur and services are provided. The Company generates other service charges by providing depositors proper safeguard and remittance of funds, such as treasury management, as well as providing optional services for depositors, such as wire transfers, that are performed upon the depositor's request. Revenue for other service charges are recognized either over time, corresponding with the deposit accounts' monthly cycle, or as the transaction occurs and services are provided. Interchange Fees Interchange fees include interchange fees from credit and debit cards processed through card association networks, merchant services, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees are recognized as transactions occur. Merchant services income represents account management fees and transaction fees charged to merchants for the processing of card association network transactions. Merchant services revenue is recognized as transactions occur, or as services are performed. Wealth Management Fees Wealth management fees include fees from asset management, custody, recordkeeping, investment advisory and administrative services. The Company recognizes income as the transaction occurs and services are provided. |
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 the defined benefit pension plan obligation acquired from HF Financial which covered former employees of HF Financial and its wholly-owned subsidiaries. |
New Accounting Pronouncements | Accounting Standards Adopted in Fiscal Year 2018 In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows for the reclassification of stranded tax effects resulting from the Tax Reform Act from other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 during the second quarter of fiscal year 2018 with period of adoption application. Upon adoption, the Company made a policy election to reclassify stranded tax effects of approximately $2.4 million from accumulated other comprehensive income to retained earnings. In March 2017, the 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 early adopted ASU 2017-08 during the first quarter of fiscal year 2018. There was no cumulative effect adjustment to the Company's consolidated financial statements. Accounting Standards Not Yet Adopted in Fiscal Year 2018 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes in the Disclosure Requirements for Fair Value Measurement (Topic 820) , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Entities are also allowed to elect to early adopt the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until after their effective date. As ASU 2018-13 only revises disclosure requirements, the Company does not believe this ASU will not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 is to be applied to all existing hedging relationships on the date of adoption and will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period, with the effect of adoption reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the potential impact of ASU 2017-12 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which addresses timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires institutions to measure all expected credit losses related to financial assets measured at amortized costs with an expected loss model based on historical experience, current conditions and reasonable and supportable forecasts relevant to affect the collectability of the financial assets, which is referred to as the current expected credit loss (CECL) model. ASU 2016-13 requires enhanced disclosures, including qualitative and quantitative requirements, to help understand significant estimates and judgments used in estimating credit losses, as well as provide additional information about the amounts recorded in the financial statements. 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 a project team working on the implementation of ASU 2016-13, and during the quarter, selected a vendor to partner with to make the required changes to our existing credit loss estimation methodology. The Company is currently evaluating the potential impact on our consolidated financial statements, however, since the magnitude of the anticipated change in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which requires that lessees recognize the assets and liabilities arising from leases on the balance sheet and disclosing key information about leasing arrangements. Lessees will be required to recognize an obligation for future lease payments measured on a discounted basis and a related right-of-use asset. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, "Revenue from Contracts with Customers." 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 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 became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company adopted this standard beginning October 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which implements a more robust framework that clarifies the principles for recognizing revenue and gives greater consistency and comparability in revenue recognition practices. In the new framework, an entity recognizes revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. The new model requires the identification of performance obligations included in the contract with customers, a determination of the transaction price and an allocation of the price to those performance obligations. The entity recognizes revenue when performance obligations are satisfied. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance pertaining to the identification of performance obligations and the licensing implementation. In May 2016, the FASB issued ASU 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related to the adoption of ASU 2014-09. The standard permits the use of either the retrospective or cumulative effect transition method. The standard, along with subsequent guidance from FASB, lists several items that are specifically out of scope for ASU 2014-09, including but not limited to core interest income, derivative instruments, investments, and loan origination fees. The Company has completed its evaluation of the effects this standard will have on its consolidated financial statements and related disclosures. The Company does not expect to recognize a significant cumulative adjustment to equity upon implementation of the standard as our current revenue recognition policies generally conform with the principals in ASU 2014-09. Per ASU 2016-08, the Company does anticipate an immaterial reclassification adjustment to its consolidated statements of income related to the net versus gross presentation of the interchange and wealth management revenue streams. The Company adopted these standards beginning October 1, 2018 and used the modified retrospective method. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 The following table presents a summary of intangible assets subject to amortization as of September 30, 2018 and 2017 . Core Deposit Intangible Brand Other Total (dollars in thousands) As of September 30, 2018 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (2,610 ) (5,828 ) (191 ) (8,629 ) Net intangible assets $ 4,729 $ 2,636 $ 347 $ 7,712 As of September 30, 2017 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (1,579 ) (5,264 ) (124 ) (6,967 ) Net intangible assets $ 5,760 $ 3,200 $ 414 $ 9,374 |
Correction of prior period balances | As a result, the consolidated statements of income have been revised to reflect these changes as follows. As originally reported Adjustments As revised (dollars in thousands) Fiscal Years Ended September 30, 2017 Interest income - loans $ 414,434 $ (7,152 ) $ 407,282 Noninterest income - service charges and other fees 48,573 7,152 55,725 Fiscal Years Ended September 30, 2016 Interest income - loans $ 370,444 $ (6,716 ) $ 363,728 Noninterest income - service charges and other fees 46,209 6,716 52,925 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 Gross Unrealized Gains Gross Unrealized Losses Estimated (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 168,394 $ — $ (1,222 ) $ 167,172 Mortgage-backed securities: Government National Mortgage Association 442,458 35 (16,335 ) 426,158 Federal Home Loan Mortgage Corporation 297,380 — (7,055 ) 290,325 Federal National Mortgage Association 188,192 — (6,081 ) 182,111 Small Business Assistance Program 260,458 — (9,345 ) 251,113 States and political subdivision securities 69,566 4 (1,795 ) 67,775 Other 1,006 — (10 ) 996 Total $ 1,427,454 $ 39 $ (41,843 ) $ 1,385,650 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (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 Home Loan Mortgage Corporation 169,147 75 (1,247 ) 167,975 Federal National Mortgage Association 170,247 22 (1,287 ) 168,982 Small Business Assistance Program 224,005 726 (1,001 ) 223,730 States and political subdivision securities 73,041 187 (642 ) 72,586 Other 1,006 28 — 1,034 Total $ 1,376,942 $ 1,845 $ (10,827 ) $ 1,367,960 |
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, 2018 and 2017 , 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, 2018 September 30, 2017 Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ 111,842 $ 111,221 $ 91,535 $ 91,597 Due after one year through five years 114,920 113,069 193,117 193,373 Due after five years through ten years 11,076 10,535 16,306 16,097 Due after ten years 122 122 122 122 237,960 234,947 301,080 301,189 Mortgage-backed securities 1,188,488 1,149,707 1,074,856 1,065,737 Securities without contractual maturities 1,006 996 1,006 1,034 Total $ 1,427,454 $ 1,385,650 $ 1,376,942 $ 1,367,960 |
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 Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ (1,222 ) $ — $ — $ 167,172 $ (1,222 ) Mortgage-backed securities 416,677 (8,427 ) 709,387 (30,389 ) 1,126,064 (38,816 ) States and political subdivision securities 23,534 (250 ) 42,282 (1,545 ) 65,816 (1,795 ) Other 996 (10 ) — — 996 (10 ) Total $ 608,379 $ (9,909 ) $ 751,669 $ (31,934 ) $ 1,360,048 $ (41,843 ) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (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 ) Other — — — — — — Total $ 667,677 $ (5,637 ) $ 267,141 $ (5,190 ) $ 934,818 $ (10,827 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of net loans receivable | The following table presents the composition of net loans as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Commercial real estate $ 4,629,330 $ 4,124,805 Agriculture 2,182,688 2,122,138 Commercial non-real estate 1,699,987 1,718,914 Residential real estate 837,569 932,892 Consumer 49,689 66,559 Other 46,487 43,207 Ending balance 9,445,750 9,008,515 Less: Unamortized discount on acquired loans (18,283 ) (29,121 ) Unearned net deferred fees and costs and loans in process (11,543 ) (10,841 ) Total $ 9,415,924 $ 8,968,553 |
Summary of the Company's nonaccrual loans | The following table presents the Company’s nonaccrual loans at September 30, 2018 and 2017 , excluding ASC 310-30 loans. Loans greater than 90 days past due and still accruing interest as of September 30, 2018 and 2017 were $0.2 million and $1.9 million , respectively. September 30, 2018 2017 Nonaccrual loans (dollars in thousands) Commercial real estate $ 22,871 $ 14,693 Agriculture 107,198 99,325 Commercial non-real estate 6,887 13,674 Residential real estate 3,549 4,421 Consumer 61 112 Total $ 140,566 $ 132,225 |
Composition of loan portfolio by internal risk rating | The following table presents the composition of the loan portfolio by internally assigned grade as of September 30, 2018 and 2017 . 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 $865.4 million for 2018 and $1.02 billion for 2017 . As of September 30, 2018 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ Other Total Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Grade: Pass $ 4,108,314 $ 1,610,291 $ 1,401,418 $ 779,610 $ 48,979 $ 46,487 $ 7,995,099 Watchlist 53,150 239,392 19,503 4,548 322 — 316,915 Substandard 41,184 137,205 20,117 6,366 159 — 205,031 Doubtful 93 2 2,277 37 — — 2,409 Loss — — — — — — — Ending balance 4,202,741 1,986,890 1,443,315 790,561 49,460 46,487 8,519,454 Loans covered by a FDIC loss sharing agreement — — — 42,627 — — 42,627 Total $ 4,202,741 $ 1,986,890 $ 1,443,315 $ 833,188 $ 49,460 $ 46,487 $ 8,562,081 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. As of September 30, 2017 Commercial Real Estate Agriculture Commercial Residential Real Estate ¹ Consumer ¹ 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 a FDIC loss sharing agreement — — — 57,537 — — 57,537 Total $ 3,638,032 $ 1,865,882 $ 1,426,960 $ 922,571 $ 66,166 $ 43,207 $ 7,962,818 1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans. |
Summary of past due financing receivables | The following table presents the Company’s past due loans at September 30, 2018 and 2017 . 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 $865.4 million for 2018 and $1.02 billion for 2017 . 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables As of September 30, 2018 (dollars in thousands) Commercial real estate $ 920 $ 551 $ 9,135 $ 10,606 $ 4,192,135 $ 4,202,741 Agriculture 1,243 2,042 51,579 54,864 1,932,026 1,986,890 Commercial non-real estate 551 16 4,068 4,635 1,438,680 1,443,315 Residential real estate 913 200 1,747 2,860 787,701 790,561 Consumer 83 47 1 131 49,329 49,460 Other — — — — 46,487 46,487 Ending balance 3,710 2,856 66,530 73,096 8,446,358 8,519,454 Loans covered by a FDIC loss sharing agreement 30 233 471 734 41,893 42,627 Total $ 3,740 $ 3,089 $ 67,001 $ 73,830 $ 8,488,251 $ 8,562,081 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Current Total Financing Receivables 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 a FDIC loss sharing agreement 998 54 738 1,790 55,747 57,537 Total $ 7,311 $ 25,986 $ 37,635 $ 70,932 $ 7,891,886 $ 7,962,818 |
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 $865.4 million for 2018 and $1.02 billion for 2017 . September 30, 2018 September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 25,136 $ 25,223 $ 3,668 $ 20,819 $ 24,893 $ 3,621 Agriculture 60,053 76,874 9,590 79,219 88,268 11,468 Commercial non-real estate 14,177 17,241 4,508 17,950 28,755 4,779 Residential real estate 4,509 5,153 2,210 5,177 5,874 2,581 Consumer 160 165 61 280 287 86 Total impaired loans with an allowance recorded 104,035 124,656 20,037 123,445 148,077 22,535 With no allowance recorded: Commercial real estate 15,764 58,141 — 16,652 69,677 — Agriculture 77,172 80,355 — 51,256 64,177 — Commercial non-real estate 8,905 18,047 — 13,983 38,924 — Residential real estate 2,177 4,574 — 2,574 9,613 — Consumer 1 118 — 13 950 — Total impaired loans with no allowance recorded 104,019 161,235 — 84,478 183,341 — Total impaired loans $ 208,054 $ 285,891 $ 20,037 $ 207,923 $ 331,418 $ 22,535 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 54,434 $ 2,815 $ 42,347 $ 2,163 $ 70,266 $ 3,876 Agriculture 127,483 4,767 131,026 5,503 100,052 6,502 Commercial non-real estate 28,938 1,405 41,489 1,485 45,592 1,971 Residential real estate 7,156 452 8,900 453 11,773 576 Consumer 219 14 369 47 309 55 Total $ 218,230 $ 9,453 $ 224,131 $ 9,651 $ 227,992 $ 12,980 The following table provides purchased impaired loans at September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 100,761 $ 27,001 $ 26,322 $ 110,797 $ 30,099 $ 29,417 Agriculture 4,841 2,815 2,551 10,463 7,174 7,059 Commercial non-real estate 7,475 416 416 9,825 1,920 1,920 Residential real estate 46,646 40,025 39,763 61,981 52,736 52,540 Consumer 656 588 588 798 666 666 Total lending $ 160,379 $ 70,845 $ 69,640 $ 193,864 $ 92,595 $ 91,602 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, 2018 and 2017 . September 30, 2018 September 30, 2017 Accruing Nonaccrual Accruing Nonaccrual (dollars in thousands) Commercial real estate $ 2,649 $ 2,616 $ 1,121 $ 5,351 Agriculture 13,248 73,741 22,678 59,633 Commercial non-real estate 3,420 656 8,369 5,641 Residential real estate 389 143 311 688 Consumer 77 — 11 21 Total $ 19,783 $ 77,156 $ 32,490 $ 71,334 The following table presents a summary of all accruing loans restructured in TDRs through either a rate modification, term extension, payment modification or due to a bankruptcy during the fiscal years ended September 30, 2018 , 2017 and 2016 . September 30, 2018 September 30, 2017 September 30, 2016 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Commercial real estate 1 $ 2,041 $ 2,041 2 $ 3,726 $ 3,726 5 $ 8,611 $ 8,611 Agriculture 5 10,753 10,753 13 18,902 18,902 20 28,123 28,123 Commercial non-real estate — — — 9 2,044 2,044 12 9,617 9,617 Residential real estate — — — 1 9 9 1 42 42 Consumer 1 73 73 1 8 8 — — — Total accruing 7 $ 12,867 $ 12,867 26 $ 24,689 $ 24,689 38 $ 46,393 $ 46,393 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — — — — The following table presents a summary of all nonaccruing loans restructured in TDRs through either a rate modification, term extension, payment modification or due to a bankruptcy during the fiscal years ended September 30, 2018 , 2017 and 2016 . September 30, 2018 September 30, 2017 September 30, 2016 Recorded Investment Recorded Investment Recorded Investment Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification (dollars in thousands) Commercial real estate — $ — $ — — $ — $ — — $ — $ — Agriculture 9 9,990 9,990 18 20,197 20,197 6 1,128 1,082 Commercial non-real estate — — — 3 3,788 3,788 2 760 760 Residential real estate — — — 2 133 133 3 254 253 Consumer — — — 3 21 21 1 8 8 Total nonaccruing 9 $ 9,990 $ 9,990 26 $ 24,139 $ 24,139 12 $ 2,150 $ 2,103 Change in recorded investment due to principal paydown at time of modification — $ — $ — — $ — $ — — $ — $ — Change in recorded investment due to chargeoffs at time of modification — — — — — — 7 47 — The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Commercial real estate — $ — — $ — — $ — Agriculture 1 366 2 8,383 2 7,307 Commercial non-real estate — — 1 — 2 275 Residential real estate — — — — 1 — Consumer — — — — 1 8 Total 1 $ 366 3 $ 8,383 6 $ 7,590 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for credit losses on financing receivables | The following tables present the Company’s allowance for loan and lease losses roll forward for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Year Ended September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Beginning balance October 1, 2017 $ 16,941 $ 25,757 $ 14,114 $ 5,347 $ 329 $ 1,015 $ 63,503 Charge-offs (3,925 ) (9,473 ) (3,813 ) (569 ) (192 ) (1,932 ) (19,904 ) Recoveries 533 332 994 337 141 618 2,955 Provision 3,231 11,355 2,315 (451 ) (21 ) 1,325 17,754 (Improvement) impairment of ASC 310-30 loans (3 ) 150 — 85 — — 232 Ending balance September 30, 2018 $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Fiscal Year Ended September 30, 2017 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate 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 Fiscal Year Ended September 30, 2016 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate 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 The following tables provide details regarding the allowance for loan and lease losses and balance by type of allowance as of September 30, 2018 and 2017 . These tables are presented net of unamortized discount on acquired loans and excludes loans of $865.4 million measured at fair value, loans held for sale of $5.5 million , and guaranteed loans of $160.3 million for September 30, 2018 and loans measured at fair value of $1.02 billion , loans held for sale of $7.5 million , and guaranteed loans of $168.3 million for September 30, 2017 . As of September 30, 2018 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,668 $ 9,590 $ 4,508 $ 2,210 $ 61 $ — $ 20,037 Collectively evaluated for impairment 12,430 18,266 9,102 2,277 196 1,026 43,297 ASC 310-30 loans 679 265 — 262 — — 1,206 Total allowance $ 16,777 $ 28,121 $ 13,610 $ 4,749 $ 257 $ 1,026 $ 64,540 Financing Receivables Individually evaluated for impairment $ 40,900 $ 137,225 $ 23,082 $ 6,686 $ 161 $ — $ 208,054 Collectively evaluated for impairment 4,053,712 1,823,947 1,364,511 780,047 48,711 46,487 8,117,415 ASC 310-30 loans 27,001 2,815 416 40,025 588 — 70,845 Loans Outstanding $ 4,121,613 $ 1,963,987 $ 1,388,009 $ 826,758 $ 49,460 $ 46,487 $ 8,396,314 As of September 30, 2017 Commercial Real Estate Agriculture Commercial Non-Real Estate Residential Real Estate Consumer Other Total (dollars in thousands) Allowance for loan and lease losses Individually evaluated for impairment $ 3,621 $ 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 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired with Deteriorated Credit Quality (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Balance at beginning of period $ 44,131 $ 38,124 $ 44,489 Acquisition — — 3,662 Accretion (13,193 ) (13,847 ) (9,971 ) Reclassification from nonaccretable difference 4,035 19,854 (56 ) Balance at end of period $ 34,973 $ 44,131 $ 38,124 |
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 $865.4 million for 2018 and $1.02 billion for 2017 . September 30, 2018 September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Impaired loans: (dollars in thousands) With an allowance recorded: Commercial real estate $ 25,136 $ 25,223 $ 3,668 $ 20,819 $ 24,893 $ 3,621 Agriculture 60,053 76,874 9,590 79,219 88,268 11,468 Commercial non-real estate 14,177 17,241 4,508 17,950 28,755 4,779 Residential real estate 4,509 5,153 2,210 5,177 5,874 2,581 Consumer 160 165 61 280 287 86 Total impaired loans with an allowance recorded 104,035 124,656 20,037 123,445 148,077 22,535 With no allowance recorded: Commercial real estate 15,764 58,141 — 16,652 69,677 — Agriculture 77,172 80,355 — 51,256 64,177 — Commercial non-real estate 8,905 18,047 — 13,983 38,924 — Residential real estate 2,177 4,574 — 2,574 9,613 — Consumer 1 118 — 13 950 — Total impaired loans with no allowance recorded 104,019 161,235 — 84,478 183,341 — Total impaired loans $ 208,054 $ 285,891 $ 20,037 $ 207,923 $ 331,418 $ 22,535 The following table presents the average recorded investment on impaired loans and interest income recognized on impaired loans for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (dollars in thousands) Commercial real estate $ 54,434 $ 2,815 $ 42,347 $ 2,163 $ 70,266 $ 3,876 Agriculture 127,483 4,767 131,026 5,503 100,052 6,502 Commercial non-real estate 28,938 1,405 41,489 1,485 45,592 1,971 Residential real estate 7,156 452 8,900 453 11,773 576 Consumer 219 14 369 47 309 55 Total $ 218,230 $ 9,453 $ 224,131 $ 9,651 $ 227,992 $ 12,980 The following table provides purchased impaired loans at September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ Outstanding Balance ¹ Recorded Investment ² Carrying Value ³ (dollars in thousands) Commercial real estate $ 100,761 $ 27,001 $ 26,322 $ 110,797 $ 30,099 $ 29,417 Agriculture 4,841 2,815 2,551 10,463 7,174 7,059 Commercial non-real estate 7,475 416 416 9,825 1,920 1,920 Residential real estate 46,646 40,025 39,763 61,981 52,736 52,540 Consumer 656 588 588 798 666 666 Total lending $ 160,379 $ 70,845 $ 69,640 $ 193,864 $ 92,595 $ 91,602 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, 2018 | |
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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Balance at beginning of period $ 5,704 $ 10,777 $ 14,722 Amortization (2,778 ) (4,748 ) (3,836 ) Changes in expected reimbursements from FDIC for changes in expected credit losses (122 ) (45 ) (278 ) Changes in reimbursable expenses (1,072 ) (986 ) (791 ) Reimbursements of covered losses to the FDIC 770 706 960 Balance at end of period $ 2,502 $ 5,704 $ 10,777 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of major classes of premises and equipment and the total amount of accumulated depreciation | The following table presents the major classes of premises and equipment and the total amount of accumulated depreciation as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Land $ 25,598 $ 25,973 Buildings and building improvements 85,960 89,927 Furniture and equipment 27,490 26,160 Construction in progress 7,732 273 Total 146,780 142,333 Accumulated depreciation (32,941 ) (30,124 ) Premise and equipment, net $ 113,839 $ 112,209 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions, notional amounts | The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by the Company as of September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Notional Amount Gross Asset Gross Liability Notional Amount Gross Asset Gross Liability (dollars in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Financial institution counterparties $ 1,082,630 $ 22,696 $ (2,231 ) $ 1,025,474 $ 4,967 $ (22,737 ) Customer counterparties 217,066 1,533 (2,160 ) 36,072 615 — Mortgage loan commitments 22,195 — (28 ) 37,765 — (48 ) Mortgage loan forward sale contracts 27,408 28 — 43,628 48 — Total $ 1,349,299 $ 24,257 $ (4,419 ) $ 1,142,939 $ 5,630 $ (22,785 ) |
Summary of offsetting assets | The following tables provide information on the Company's netting adjustments as of September 30, 2018 and 2017 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ $ (4,419 ) $ 2,231 $ — $ (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2017 Total Derivative Assets $ 1,850 $ (1,850 ) $ — $ — Total Derivative Liabilities ¹ ² $ (19,005 ) $ 1,850 $ — $ (17,155 ) 1 In addition to the cash collateral, there were securities of $25.0 million posted as collateral for financial institution counterparties at September 30, 2017. 2 There was an additional $2.3 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2017 and is included in other assets in the consolidated balance sheets. |
Summary of offsetting liabilities | The following tables provide information on the Company's netting adjustments as of September 30, 2018 and 2017 . Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2018 Total Derivative Assets $ 24,257 $ (2,231 ) $ (20,115 ) $ 1,911 Total Derivative Liabilities ¹ $ (4,419 ) $ 2,231 $ — $ (2,188 ) 1 There was an additional $6.2 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2018 and is included in other assets in the consolidated balance sheets. Gross Fair Value Fair Value Offset Amount Cash Collateral Net Amount Presented on the Consolidated Balance Sheet (dollars in thousands) As of September 30, 2017 Total Derivative Assets $ 1,850 $ (1,850 ) $ — $ — Total Derivative Liabilities ¹ ² $ (19,005 ) $ 1,850 $ — $ (17,155 ) 1 In addition to the cash collateral, there were securities of $25.0 million posted as collateral for financial institution counterparties at September 30, 2017. 2 There was an additional $2.3 million of collateral held for initial margin with our Futures Clearing Merchant for clearing derivatives at September 30, 2017 and is included in other assets in the consolidated balance sheets. |
Schedule of derivative instruments, effect on other comprehensive income | The effect of derivatives on the consolidated statements of income for the fiscal years ended September 30, 2018 , 2017 and 2016 was as follows. Amount of Gain (Loss) Recognized in Income Fiscal Years Ended September 30, Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Statements of Income 2018 2017 2016 (dollars in thousands) Interest rate swaps Net realized and unrealized gain on derivatives $ 44,596 $ 49,900 $ (48,658 ) Mortgage loan commitments Net realized and unrealized gain on derivatives (28 ) (48 ) 66 Mortgage loan forward sale contracts Net realized and unrealized gain on derivatives 28 48 (66 ) |
The Fair Value Option For Cer_2
The Fair Value Option For Certain Loans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Noninterest Income Total Changes in Fair Value Noninterest Income Total Changes in Fair Value Noninterest Income Total Changes in Fair Value (dollars in thousands) Long-term loans $ (45,407 ) $ (45,407 ) $ (65,231 ) $ (65,231 ) $ 26,314 $ 26,314 |
Core Deposits and Other Intan_2
Core Deposits and Other Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 The following table presents a summary of intangible assets subject to amortization as of September 30, 2018 and 2017 . Core Deposit Intangible Brand Other Total (dollars in thousands) As of September 30, 2018 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (2,610 ) (5,828 ) (191 ) (8,629 ) Net intangible assets $ 4,729 $ 2,636 $ 347 $ 7,712 As of September 30, 2017 Gross carrying amount $ 7,339 $ 8,464 $ 538 $ 16,341 Accumulated amortization (1,579 ) (5,264 ) (124 ) (6,967 ) Net intangible assets $ 5,760 $ 3,200 $ 414 $ 9,374 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense of intangible assets in subsequent fiscal years is as follows. Fiscal year Amount (dollars in thousands) 2019 $ 1,538 2020 1,430 2021 1,334 2022 1,249 2023 967 2023 and thereafter 1,194 Total $ 7,712 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Summary of the composition of deposits | The following table presents the composition of deposits as of September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Noninterest-bearing demand $ 1,842,704 $ 1,856,126 Interest-bearing demand 6,043,717 5,847,432 Time deposits, $250,000 or more 383,868 273,365 Time deposits, less than $250,000 1,463,210 1,000,690 Total $ 9,733,499 $ 8,977,613 |
Schedule of time deposit maturities | At September 30, 2018 , the following table presents the scheduled maturities of time deposits in subsequent fiscal years. Accounts with no stated maturity date are included in 2019 . Fiscal year Amount (dollars in thousands) 2019 $ 1,245,059 2020 433,142 2021 95,231 2022 47,045 2023 25,369 2024 and thereafter 1,232 Total $ 1,847,078 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 . September 30, 2018 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 90,907 — — — 90,907 Total repurchase agreements $ 90,907 $ — $ — $ — $ 90,907 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 |
FHLB Advances and Other Borro_2
FHLB Advances and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB advances and other borrowings | FHLB advances and other borrowings consist of the following at September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Short-term borrowings: Notes payable to FHLB, interest rates from 1.25% to 1.27% $ — $ 512,200 FHLB fed funds advance, interest rate of 2.37% and matured in October 2018 100,000 75,000 Long-term borrowings: Notes payable to FHLB, interest rates from 2.38% to 3.66% and maturity dates from March 2020 to July 2023, collateralized by real estate loans, with various call dates at the option of the FHLB 175,000 56,000 Total 275,000 643,200 Fair value adjustment ¹ — 14 Total FHLB advances and other borrowings $ 275,000 $ 643,214 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, 2018 , FHLB advances and other borrowings are due or callable (whichever is earlier) in subsequent fiscal years as follows. Fiscal year Amount (dollars in thousands) 2019 $ 100,000 2020 150,000 2021 — 2022 — 2023 25,000 2023 and thereafter — Total $ 275,000 |
Subordinated Debentures and S_2
Subordinated Debentures and Subordinated Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of subordinated debentures and subordinated notes payable | The following table presents the subordinated debentures and subordinated notes payable at September 30, 2018 and 2017 . September 30, 2018 September 30, 2017 Amount Outstanding Common Shares Held in Other Assets Amount Outstanding Common Shares Held in Other Assets (dollars in thousands) Junior subordinated debentures payable to non-consolidated trusts GW Statutory Trust IV, variable rate of 2.85%, plus 3 month LIBOR $ 23,093 $ 693 $ 23,093 $ 693 GW Statutory Trust VI, variable rate of 1.48%, plus 3 month LIBOR 30,928 928 30,928 928 SSB Trust II, variable rate of 1.85%, plus 3 month LIBOR 2,062 62 2,062 62 HF Capital Trust III, variable rate of 3.35%, plus 3 month LIBOR 5,155 155 5,155 155 HF Capital Trust IV, variable rate of 3.10%, plus 3 month LIBOR 7,217 217 7,217 217 HF Capital Trust V, variable rate of 1.83%, plus 3 month LIBOR 5,310 310 5,310 310 HF Capital Trust VI, variable rate of 1.65%, plus 3 month LIBOR 2,155 155 2,155 155 Total junior subordinated debentures payable 75,920 $ 2,520 75,920 $ 2,520 Less: fair value adjustment ¹ (2,317 ) (2,409 ) Total junior subordinated debentures payable, net of fair value adjustment 73,603 73,511 Subordinated notes payable Fixed to floating rate, 4.875% per annum 35,000 35,000 Less: unamortized debt issuance costs (135 ) (209 ) Total subordinated notes payable 34,865 34,791 Total subordinated debentures and subordinated notes payable $ 108,468 $ 108,302 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) components | The provision for income taxes charged to operations consists of the following for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Currently paid or payable Federal $ 42,261 $ 56,171 $ 51,749 State 10,556 10,639 8,677 Total 52,817 66,810 60,426 Deferred tax expense Federal 20,205 2,477 (1,513 ) State 1,097 $ 154 $ (50 ) Total 21,302 2,631 (1,563 ) Total provision for income taxes $ 74,119 $ 69,441 $ 58,863 |
Schedule of effective income tax rate reconciliation | The income tax provision differs from the amount of income tax determined by applying a blended U.S. federal income tax rate of 24.5% for fiscal year 2018 and 35% for fiscal years 2017 and 2016 to pretax income due to the following. Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Income tax expense computed at the statutory rate $ 56,915 $ 74,979 $ 63,041 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 8,795 7,015 5,608 Tax exempt interest income (5,778 ) (7,973 ) (7,534 ) Tax benefit of stock-based compensation plans (424 ) (2,153 ) — Impact of enacted federal income tax rate reduction 13,709 — — Other 902 (2,427 ) (2,252 ) Income tax expense, as reported $ 74,119 $ 69,441 $ 58,863 |
Schedule of deferred tax assets and liabilities | Net deferred tax assets (liabilities) consist of the following components at September 30, 2018 and 2017 . September 30, 2018 2017 (dollars in thousands) Deferred tax assets: Allowance for loan and lease losses $ 15,709 $ 23,730 Compensation 2,577 6,227 Securities available for sale 10,305 3,413 Other real estate owned 325 763 Core deposit intangible and other fair value adjustments 3,677 6,058 Excess tax basis of FDIC indemnification asset and clawback liability 3,633 4,563 Excess tax basis of loans acquired over carrying value 3,669 9,417 Other reserves 2,787 4,406 Other 5,711 6,922 Total deferred tax assets 48,393 65,499 Deferred tax liabilities: Goodwill and other intangibles (11,567 ) (13,784 ) Premises and equipment (6,248 ) (8,828 ) Other (446 ) (487 ) Total deferred tax liabilities (18,261 ) (23,099 ) Net deferred tax assets $ 30,132 $ 42,400 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 . September 30, 2018 2017 (dollars in thousands) Changes in benefit obligations: Benefit obligations, beginning of period $ 5,372 6,355 Service cost 53 50 Interest cost 111 223 Benefits paid (5,507 ) (803 ) Assumption changes — (286 ) Actuarial loss (29 ) (167 ) Benefit obligations, end of period $ — $ 5,372 Changes in plan assets: Fair value of plan assets, beginning of period $ 3,093 $ 3,359 Actual return on plan assets 2 277 Company contributions 2,412 260 Benefits paid (5,507 ) (803 ) Fair value of plan assets, end of period $ — $ 3,093 Funded status ¹ $ — $ (2,279 ) Amounts recognized in accumulated other comprehensive income consists of net gain (loss) $ (329 ) $ 329 Accumulated benefit obligation $ — $ 5,372 ¹ Amounts included in accrued expenses and 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, 2018 , 2017 and 2016 for the defined benefit plan is presented below. Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Net periodic benefit cost Service cost $ 53 $ 50 $ 21 Interest cost 111 223 176 Expected return on plan assets — (258 ) (190 ) Amortization of prior losses — — 50 Net periodic benefit cost $ 164 $ 15 $ 57 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net gain (loss) (329 ) 329 — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (493 ) $ 314 $ (57 ) |
Summary of weighted-average assumptions used | The weighted-average assumptions used to determine benefit obligations are as follows as of September 30, 2018 and 2017 . September 30, 2018 2017 Discount rate - pre-retirement ¹ N/A 3.83 % Discount rate - post-retirement ¹ N/A 3.83 % Rate of compensation increase 1, 2 N/A N/A ¹ Effective February 1, 2018, the plan was terminated. ² 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, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 Discount rate - pre-retirement ¹ N/A 3.83 % 3.57 % Discount rate - post-retirement ¹ N/A 3.83 % 3.57 % Rate of compensation increase ¹ N/A 4.00 % 4.00 % Expected long-term return on plan assets ¹ N/A 8.00 % 8.00 % ¹ Effective February 1, 2018, the plan was terminated. |
Summary of plan asset allocation | Fair Value Actual Asset Mix as a % of Market Value As of September 30, 2018 (dollars in thousands) Cash and cash equivalents — — % Total pension plan assets $ — — % As of September 30, 2017 Cash and cash equivalents 3,093 100.00 % Total pension plan assets $ 3,093 100.00 % The following table shows the fair values of the Company's pension plan assets by asset category at September 30, 2018 and 2017 . Information about the valuation techniques and inputs used to measure fair value is provided in "Note 24. Fair Value Measurements ". Fair Value Level 1 Level 2 Level 3 As of September 30, 2018 (dollars in thousands) Cash and cash equivalents $ — $ — $ — $ — Total pension plan assets $ — $ — $ — $ — As of September 30, 2017 Cash and cash equivalents $ 3,093 $ 3,093 $ — $ — Total pension plan assets $ 3,093 $ 3,093 $ — $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 . The number of performance shares granted in the following table are reflected at the amount of achievement of the pre-established targets. September 30, 2018 September 30, 2017 September 30, 2016 Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Common Weighted-Average Grant Date Fair Value Restricted Shares Restricted shares, beginning of fiscal year 180,337 $ 33.06 160,335 $ 26.89 80,446 $ 18.18 Granted 89,376 41.07 90,363 39.35 113,543 30.95 Vested (97,682 ) 32.11 (68,293 ) 26.97 (25,729 ) 18.11 Forfeited (8,744 ) 35.99 (2,068 ) 30.91 (7,925 ) 25.09 Canceled — — — — — — Restricted shares, end of period 163,287 $ 37.86 180,337 $ 33.06 160,335 $ 26.89 Vested, but not issuable at end of period 39,514 $ 32.90 29,287 $ 30.05 24,480 $ 26.14 Performance Shares Performance shares, beginning of fiscal year 133,604 $ 33.39 236,185 $ 20.28 211,026 $ 18.00 Granted 53,682 29.52 137,612 39.43 43,371 30.78 Vested (7,017 ) 18.00 (235,055 ) 18.00 (55 ) 18.00 Forfeited (5,073 ) 37.75 (5,138 ) 19.80 (18,157 ) 18.83 Canceled — — — — — — Performance shares, end of period 175,196 $ 36.29 133,604 $ 33.39 236,185 $ 20.28 Vested, but not issuable at end of period 5,612 $ 18.00 5,612 $ 18.00 — $ — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) As of September 30, 2018 Tier 1 risk based capital (to risk-weighted assets): Consolidated $ 1,208,852 12.0 % $ 604,637 6.0 % N/A N/A Bank 1,168,110 11.6 % 604,467 6.0 % $ 805,957 8.0 % Total risk based capital (to risk-weighted assets): Consolidated 1,308,875 13.0 % 806,182 8.0 % N/A N/A Bank 1,233,133 12.2 % 805,957 8.0 % 1,007,446 10.0 % Tier 1 leverage capital (to average assets): Consolidated 1,208,852 10.7 % 451,939 4.0 % N/A N/A Bank 1,168,110 10.3 % 452,404 4.0 % 565,505 5.0 % Common Equity Tier 1 risk based capital (to risk-weighted assets): Consolidated 1,135,249 11.3 % 453,478 4.5 % N/A N/A Bank $ 1,168,110 11.6 % $ 453,351 4.5 % $ 654,840 6.5 % 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 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the Company's commitments | A summary of the Company’s commitments as of September 30, 2018 and 2017 is as follows. September 30, 2018 2017 (dollars in thousands) Commitments to extend credit $ 2,344,550 $ 2,515,653 Letters of credit 69,613 70,186 |
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. Fiscal year Amount (dollars in thousands) 2019 $ 5,156 2020 4,640 2021 3,299 2022 2,753 2023 2,192 2024 and thereafter 5,403 Total $ 23,443 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2018 U.S. Treasury securities $ 167,172 $ 167,172 $ — $ — Mortgage-backed securities 1,149,707 — 1,149,707 — States and political subdivision securities 67,775 — 66,805 970 Other 996 — 996 — Total securities available for sale $ 1,385,650 $ 167,172 $ 1,217,508 $ 970 Derivatives-assets $ 1,911 $ — $ 1,911 $ — Derivatives-liabilities 2,188 — 2,188 — Fair value loans 865,386 — 865,386 — Loan servicing rights 3,087 — — 3,087 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 Other 1,034 — 1,034 — Total securities available for sale $ 1,367,960 $ 228,603 $ 1,138,288 $ 1,069 Derivatives-assets $ — $ — $ — $ — Derivatives-liabilities 17,155 — 17,155 — Fair value loans 1,016,576 — 1,016,576 — Loan servicing rights 4,074 — — 4,074 |
Summary of the changes in Level 3 financial instruments | The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Other securities available for sale Balance, beginning of period $ 1,069 $ 1,315 $ 1,835 Additions 149 — 15 Principal paydown (248 ) (246 ) (235 ) Realized and unrealized (loss) ¹ — — (300 ) Balance, end of period $ 970 $ 1,069 $ 1,315 Loan servicing rights Balance, beginning of period $ 4,074 $ 5,781 $ — Additions — — 6,573 Realized and unrealized (loss) ² (987 ) (1,707 ) (792 ) Balance, end of period $ 3,087 $ 4,074 $ 5,781 1 Realized and unrealized (loss) related to other securities available for sale are reported as a a component of net gain (loss) on sale of securities on the consolidated statements of income. 2 Realized and unrealized (loss) related to loan servicing rights are reported as a component of mortgage banking income, net on the consolidated statements of income. |
Summary of the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis | The following 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, 2018 and 2017 . Fair Value Level 1 Level 2 Level 3 (dollars in thousands) As of September 30, 2018 Other repossessed property $ 22,225 $ — $ — $ 22,225 Impaired loans 188,017 — — 188,017 Loans held for sale, at lower of cost or fair value 5,456 — 5,456 — Property held for sale 1,104 — — 1,104 As of September 30, 2017 Other repossessed property $ 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 — Property held for sale 5,147 — — 5,147 |
Valuation techniques and significant observable inputs | The valuation techniques and significant unobservable inputs used to measure Level 3 fair value measurements at September 30, 2018 were as follows. Fair Value of Assets / (Liabilities) at September 30, 2018 Valuation Unobservable Range Weighted (dollars in thousands) Other repossessed property $ 22,225 Appraisal value Property specific adjustment N/A N/A Impaired loans 188,017 Appraisal value Property specific adjustment N/A N/A Property held for sale 1,104 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, 2018 and 2017 , are as follows. September 30, 2018 September 30, 2017 Level in Fair Value Hierarchy Carrying Amount Fair Carrying Amount Fair (dollars in thousands) Assets Cash and cash equivalents Level 1 $ 298,696 $ 298,696 $ 360,396 $ 360,396 Loans, net excluding fair valued loans, loans held for sale and impaired loans Level 3 8,357,065 8,231,829 7,881,018 7,798,134 Accrued interest receivable Level 2 58,948 58,948 53,176 53,176 Cash surrender value of life insurance policies Level 2 30,461 30,461 29,619 29,619 FHLB stock Level 2 22,533 22,533 37,551 37,551 Liabilities Deposits Level 2 $ 9,733,499 $ 9,734,971 $ 8,977,613 $ 8,978,926 FHLB advances and other borrowings Level 2 275,000 275,797 643,214 645,421 Securities sold under repurchase agreements Level 2 90,907 90,907 132,636 132,636 Accrued interest payable Level 2 8,773 8,773 4,405 4,405 Subordinated debentures and subordinated notes payable Level 2 108,468 107,841 108,302 108,293 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 fiscal years ended September 30, 2018 , 2017 and 2016 . Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands, except per share data) Net income $ 157,916 $ 144,786 $ 121,253 Weighted average common shares outstanding 58,938,169 58,770,708 56,563,438 Dilutive effect of stock based compensation 193,481 258,674 165,912 Weighted average common shares outstanding for diluted earnings per share calculation 59,131,650 59,029,382 56,729,350 Basic earnings per share $ 2.68 $ 2.46 $ 2.14 Diluted earnings per share $ 2.67 $ 2.45 $ 2.14 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets (Dollars in Thousands) September 30, 2018 2017 (dollars in thousands) Assets Cash and cash equivalents $ 72,924 $ 15,004 Investment in subsidiaries 1,873,422 1,839,293 Net deferred tax assets 1,489 1,502 Other assets 2,056 8,515 Total assets $ 1,949,891 $ 1,864,314 Liabilities and stockholders’ equity Subordinated debentures and subordinated notes payable $ 108,468 $ 108,302 Accrued expenses and other liabilities 872 1,012 Total liabilities 109,340 109,314 Stockholders’ equity Common stock 589 588 Additional paid-in capital 1,318,457 1,314,039 Retained earnings 553,014 445,747 Accumulated other comprehensive income (31,509 ) (5,374 ) Total stockholders’ equity 1,840,551 1,755,000 Total liabilities and stockholders’ equity $ 1,949,891 $ 1,864,314 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income (Dollars in Thousands) Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Income Dividends from subsidiary bank $ 111,159 $ 62,470 $ 70,582 Dividends on securities 51 123 223 Other 103 62 48 Total income 111,313 62,655 70,853 Expenses Interest on subordinated debentures and subordinated notes payable 5,040 4,464 3,737 Salaries and employee benefits 5,849 6,847 3,723 Professional fees 1,038 631 378 Acquisition expenses — — 1,010 Other 2,456 2,204 2,512 Total expense 14,383 14,146 11,360 Income before income tax and equity in undistributed net income of subsidiaries 96,930 48,509 59,493 Income tax benefit (3,075 ) (8,147 ) (3,414 ) Income before equity in undistributed net income of subsidiaries 100,005 56,656 62,907 Equity in undistributed net income of subsidiaries 57,911 88,130 58,346 Net income $ 157,916 $ 144,786 $ 121,253 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in Thousands) Fiscal Years Ended September 30, 2018 2017 2016 (dollars in thousands) Operating Activities Net income $ 157,916 $ 144,786 $ 121,253 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 166 165 36 Gain on redemption of subordinated debentures — (111 ) — Stock-based compensation 4,419 6,810 3,517 Deferred income taxes 13 (1,796 ) 3 Changes in: Other assets 6,459 (823 ) (190 ) Accrued interest and other liabilities (140 ) 286 225 Equity in undistributed net income of subsidiaries (57,911 ) (88,130 ) (58,346 ) Net cash provided by operating activities 110,922 61,187 66,498 Investing activities Business acquisitions, net of cash acquired — — (30,832 ) Net cash used in investing activities — — (30,832 ) Financing Activities Redemption of subordinated debentures — (3,625 ) — Common stock repurchased — (5,605 ) — Dividends paid (53,002 ) (43,474 ) (31,419 ) Net cash used in financing activities (53,002 ) (52,704 ) (31,419 ) Net increase in cash and cash equivalents 57,920 8,483 4,247 Cash and cash equivalents, beginning of period 15,004 6,521 2,274 Cash and cash equivalents, end of period $ 72,924 $ 15,004 $ 6,521 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) | Oct. 25, 2018$ / shares | Nov. 26, 2018USD ($)shares | Sep. 30, 2018USD ($)portfolio_classreporting_unitsegment$ / shares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Dec. 31, 2010agreement | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Dividends per share (in dollars per share) | $ / shares | $ 0.90 | $ 0.74 | $ 0.56 | ||||
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 | $ 1,100,000 | $ 1,600,000 | |||||
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 | ||||
Cumulative effect adjustment | [1] | (263,000) | |||||
Provision for income taxes | 74,119,000 | 69,441,000 | 58,863,000 | ||||
Reclassification from AOCI to retained earnings | [2] | 0 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Reclassification from AOCI to retained earnings | [2] | (2,353,000) | |||||
Additional Paid-in Capital | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Cumulative effect adjustment | [1] | $ (751,000) | |||||
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 | |||||
Impact on diluted earnings per common share (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | ||||
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 | $ 0.25 | ||||||
Common shares repurchased (in shares) | shares | 1,583,005 | ||||||
Common shares repurchased | $ 57,800,000 | ||||||
[1] | Cumulative effect adjustment relates to adoption of ASU 2016-09, Compensation - Stock Based Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. | ||||||
[2] | Reclassification due to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 1, New Accounting Pronouncements and Note 18, Income Taxes, for additional information. |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Amortization Method and Estimated Lives of Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2018 | |
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 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies - Correction of Prior Period Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Loans | $ 451,290 | $ 407,282 | $ 363,728 |
As originally reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Loans | 414,434 | 370,444 | |
Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Loans | (7,152) | (6,716) | |
Service Charges and Other Fees | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Service charges and other fees | 55,725 | 52,925 | |
Service Charges and Other Fees | As originally reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Service charges and other fees | 48,573 | 46,209 | |
Service Charges and Other Fees | Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Service charges and other fees | $ 7,152 | $ 6,716 |
New Accounting Standards (Detai
New Accounting Standards (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018USD ($) | [1] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Reclassification from AOCI to retained earnings | $ 0 | |
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Reclassification from AOCI to retained earnings | $ 2,353 | |
[1] | Reclassification due to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 1, New Accounting Pronouncements and Note 18, Income Taxes, for additional information. |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Reserve balances | $ 53.7 | $ 26.9 |
Securities Available for Sale -
Securities Available for Sale - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 1,427,454 | $ 1,376,942 |
Gross Unrealized Gains | 39 | 1,845 |
Gross Unrealized Losses | (41,843) | (10,827) |
Estimated Fair Value | 1,385,650 | 1,367,960 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 168,394 | 228,039 |
Gross Unrealized Gains | 0 | 579 |
Gross Unrealized Losses | (1,222) | (15) |
Estimated Fair Value | 167,172 | 228,603 |
Mortgage backed-securities | Government National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 442,458 | 511,457 |
Gross Unrealized Gains | 35 | 228 |
Gross Unrealized Losses | (16,335) | (6,635) |
Estimated Fair Value | 426,158 | 505,050 |
Mortgage backed-securities | Federal Home Loan Mortgage Corporation | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 297,380 | 169,147 |
Gross Unrealized Gains | 0 | 75 |
Gross Unrealized Losses | (7,055) | (1,247) |
Estimated Fair Value | 290,325 | 167,975 |
Mortgage backed-securities | Federal National Mortgage Association | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 188,192 | 170,247 |
Gross Unrealized Gains | 0 | 22 |
Gross Unrealized Losses | (6,081) | (1,287) |
Estimated Fair Value | 182,111 | 168,982 |
Mortgage backed-securities | Small Business Assistance Program | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 260,458 | 224,005 |
Gross Unrealized Gains | 0 | 726 |
Gross Unrealized Losses | (9,345) | (1,001) |
Estimated Fair Value | 251,113 | 223,730 |
States and political subdivision securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 69,566 | 73,041 |
Gross Unrealized Gains | 4 | 187 |
Gross Unrealized Losses | (1,795) | (642) |
Estimated Fair Value | 67,775 | 72,586 |
Other | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,006 | 1,006 |
Gross Unrealized Gains | 0 | 28 |
Gross Unrealized Losses | (10) | 0 |
Estimated Fair Value | $ 996 | $ 1,034 |
Securities Available for Sale_2
Securities Available for Sale - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Amortized Cost | ||
Due in one year or less | $ 111,842 | $ 91,535 |
Due after one year through five years | 114,920 | 193,117 |
Due after five years through ten years | 11,076 | 16,306 |
Due after ten years | 122 | 122 |
Amortized Cost | 237,960 | 301,080 |
Estimated Fair Value | ||
Due in one year or less | 111,221 | 91,597 |
Due after one year through five years | 113,069 | 193,373 |
Due after five years through ten years | 10,535 | 16,097 |
Due after ten years | 122 | 122 |
Estimated Fair Value | 234,947 | 301,189 |
Amortized Cost | 1,427,454 | 1,376,942 |
Estimated Fair Value | 1,385,650 | 1,367,960 |
Securities without contractual maturities, Amortized Cost | 1,006 | 1,006 |
Securities without contractual maturities, Fair Value | 996 | 1,034 |
Mortgage-backed securities | ||
Estimated Fair Value | ||
Amortized Cost | 1,188,488 | 1,074,856 |
Estimated Fair Value | $ 1,149,707 | $ 1,065,737 |
Securities Available for Sale_3
Securities Available for Sale - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities available for sale | $ 24,971,000 | $ 5,074,000 | $ 145,934,000 |
Available-for-sale securities, gross realized gains | 0 | 100,000 | 500,000 |
Other than temporary impairment losses recognized in earnings | $ 0 | ||
Securities pledged as collateral | $ 787,400,000 | $ 951,400,000 | |
Percentage of investment portfolio in continuous loss position (as a percent) | 98.00% | 68.00% | |
Number of securities in an unrealized loss position | security | 390 | 249 |
Securities Available for Sale_4
Securities Available for Sale - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, Fair Value | $ 608,379 | $ 667,677 |
12 months or more, Fair Value | 751,669 | 267,141 |
Estimated Fair Value | 1,360,048 | 934,818 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (9,909) | (5,637) |
12 months or more, Unrealized Losses | (31,934) | (5,190) |
Unrealized Losses | (41,843) | (10,827) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, Fair Value | 167,172 | 10,003 |
12 months or more, Fair Value | 0 | 0 |
Estimated Fair Value | 167,172 | 10,003 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (1,222) | (15) |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | (1,222) | (15) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, Fair Value | 416,677 | 635,969 |
12 months or more, Fair Value | 709,387 | 241,368 |
Estimated Fair Value | 1,126,064 | 877,337 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (8,427) | (5,425) |
12 months or more, Unrealized Losses | (30,389) | (4,746) |
Unrealized Losses | (38,816) | (10,171) |
States and political subdivision securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, Fair Value | 23,534 | 21,705 |
12 months or more, Fair Value | 42,282 | 25,773 |
Estimated Fair Value | 65,816 | 47,478 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (250) | (197) |
12 months or more, Unrealized Losses | (1,545) | (444) |
Unrealized Losses | (1,795) | (641) |
Other | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Less than 12 months, Fair Value | 996 | 0 |
12 months or more, Fair Value | 0 | 0 |
Estimated Fair Value | 996 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized Losses | (10) | 0 |
12 months or more, Unrealized Losses | 0 | 0 |
Unrealized Losses | $ (10) | $ 0 |
Loans - Schedule of Financing R
Loans - Schedule of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 9,445,750 | $ 9,008,515 |
Less: | ||
Less: Unamortized discount on acquired loans | (18,283) | (29,121) |
Unearned net deferred fees and costs and loans in process | (11,543) | (10,841) |
Total | 9,415,924 | 8,968,553 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 4,629,330 | 4,124,805 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 2,182,688 | 2,122,138 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 1,699,987 | 1,718,914 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 837,569 | 932,892 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | 49,689 | 66,559 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total financing receivables, gross | $ 46,487 | $ 43,207 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans covered by FDIC loss share agreements | $ 42,627 | $ 57,537 | |
Loan held for sale | 5,456 | 7,456 | |
Loans and written loan commitments at fair value under the fair value option | 865,386 | 1,016,576 | |
Unamortized discount on acquired loans | 13,000 | 11,600 | |
Loans in process | (1,500) | (800) | |
Guaranteed loans | 8,396,314 | 7,787,016 | |
Principal balances of residential real estate loans sold | 266,500 | 280,500 | |
Loans greater than 90 days past due and still accruing interest | 200 | 1,900 | |
Valuation adjustments made to repossessed properties | 1,600 | 1,700 | |
Specific reserves included in the allowance for loan losses for TDRs | 9,200 | 8,800 | |
Troubled debt restructuring, commitments to lend additional funds to borrowers | 300 | ||
Transfers out of troubled debt restructuring status | 800 | 5,500 | $ 22,300 |
Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and written loan commitments at fair value under the fair value option | 865,400 | 1,020,000 | |
Loans Guaranteed by US Government Authorities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Guaranteed loans | $ 168,600 | $ 168,300 |
Loans - Summary of Nonaccrual L
Loans - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 140,566 | $ 132,225 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 22,871 | 14,693 |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 107,198 | 99,325 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 6,887 | 13,674 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 3,549 | 4,421 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 61 | $ 112 |
Loans - Composition of the Loan
Loans - Composition of the Loan Portfolio by Internal Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | $ 8,519,454 | $ 7,905,281 |
Loans covered by FDIC loss share agreements | 42,627 | 57,537 |
Total | 8,562,081 | 7,962,818 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 7,995,099 | 7,429,041 |
Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 316,915 | 273,825 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 205,031 | 197,692 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 2,409 | 4,723 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 4,202,741 | 3,638,032 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 4,202,741 | 3,638,032 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 4,108,314 | 3,519,689 |
Commercial real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 53,150 | 80,195 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 41,184 | 37,627 |
Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 93 | 521 |
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 | 1,986,890 | 1,865,882 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 1,986,890 | 1,865,882 |
Agriculture | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,610,291 | 1,577,403 |
Agriculture | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 239,392 | 157,407 |
Agriculture | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 137,205 | 130,953 |
Agriculture | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 2 | 119 |
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 | 1,443,315 | 1,426,960 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 1,443,315 | 1,426,960 |
Commercial non-real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 1,401,418 | 1,369,803 |
Commercial non-real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 19,503 | 31,878 |
Commercial non-real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 20,117 | 21,438 |
Commercial non-real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 2,277 | 3,841 |
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 | 790,561 | 865,034 |
Loans covered by FDIC loss share agreements | 42,627 | 57,537 |
Total | 833,188 | 922,571 |
Residential real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 779,610 | 853,266 |
Residential real estate | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 4,548 | 4,158 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 6,366 | 7,368 |
Residential real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 37 | 242 |
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 | 49,460 | 66,166 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 49,460 | 66,166 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 48,979 | 65,673 |
Consumer | Watchlist | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 322 | 187 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 159 | 306 |
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 | 46,487 | 43,207 |
Loans covered by FDIC loss share agreements | 0 | 0 |
Total | 46,487 | 43,207 |
Other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivables | 46,487 | |
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, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | $ 8,519,454 | $ 7,905,281 |
Loans covered by FDIC loss sharing agreements | 42,627 | 57,537 |
Total | 8,562,081 | 7,962,818 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 73,096 | 69,142 |
Loans covered by FDIC loss sharing agreements | 734 | 1,790 |
Total | 73,830 | 70,932 |
Past Due | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 3,710 | 6,313 |
Loans covered by FDIC loss sharing agreements | 30 | 998 |
Total | 3,740 | 7,311 |
Past Due | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 2,856 | 25,932 |
Loans covered by FDIC loss sharing agreements | 233 | 54 |
Total | 3,089 | 25,986 |
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 | 66,530 | 36,897 |
Loans covered by FDIC loss sharing agreements | 471 | 738 |
Total | 67,001 | 37,635 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 8,446,358 | 7,836,139 |
Loans covered by FDIC loss sharing agreements | 41,893 | 55,747 |
Total | 8,488,251 | 7,891,886 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,202,741 | 3,638,032 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 4,202,741 | 3,638,032 |
Commercial real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 10,606 | 29,916 |
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 | 920 | 876 |
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 | 551 | 22,536 |
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 | 9,135 | 6,504 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,192,135 | 3,608,116 |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,986,890 | 1,865,882 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,986,890 | 1,865,882 |
Agriculture | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 54,864 | 25,478 |
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 | 1,243 | 1,453 |
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 | 2,042 | 3,181 |
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 | 51,579 | 20,844 |
Agriculture | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,932,026 | 1,840,404 |
Commercial non-real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,443,315 | 1,426,960 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 1,443,315 | 1,426,960 |
Commercial non-real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 4,635 | 11,180 |
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 | 551 | 2,485 |
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 | 16 | 115 |
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 | 4,068 | 8,580 |
Commercial non-real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 1,438,680 | 1,415,780 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 790,561 | 865,034 |
Loans covered by FDIC loss sharing agreements | 42,627 | 57,537 |
Total | 833,188 | 922,571 |
Residential real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 2,860 | 2,455 |
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 | 913 | 1,428 |
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 | 200 | 76 |
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 | 1,747 | 951 |
Residential real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 787,701 | 862,579 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 49,460 | 66,166 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 49,460 | 66,166 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 131 | 113 |
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 | 83 | 71 |
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 | 47 | 24 |
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 | 1 | 18 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 49,329 | 66,053 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, net of unamortized discount on acquired loans | 46,487 | 43,207 |
Loans covered by FDIC loss sharing agreements | 0 | 0 |
Total | 46,487 | 43,207 |
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 | $ 46,487 | $ 43,207 |
Loans - Impaired Financing Rece
Loans - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
With an allowance recorded: | |||
Recorded Investment | $ 104,035 | $ 123,445 | |
Unpaid Principal Balance | 124,656 | 148,077 | |
Related Allowance | 20,037 | 22,535 | |
With no allowance recorded: | |||
Recorded Investment | 104,019 | 84,478 | |
Unpaid Principal Balance | 161,235 | 183,341 | |
Total Recorded Investment, Impaired Loans | 208,054 | 207,923 | |
Total Unpaid Principal Balance, Impaired Loans | 285,891 | 331,418 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 218,230 | 224,131 | $ 227,992 |
Interest Income Recognized While on Impaired Status | 9,453 | 9,651 | 12,980 |
Commercial real estate | |||
With an allowance recorded: | |||
Recorded Investment | 25,136 | 20,819 | |
Unpaid Principal Balance | 25,223 | 24,893 | |
Related Allowance | 3,668 | 3,621 | |
With no allowance recorded: | |||
Recorded Investment | 15,764 | 16,652 | |
Unpaid Principal Balance | 58,141 | 69,677 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 54,434 | 42,347 | 70,266 |
Interest Income Recognized While on Impaired Status | 2,815 | 2,163 | 3,876 |
Agriculture | |||
With an allowance recorded: | |||
Recorded Investment | 60,053 | 79,219 | |
Unpaid Principal Balance | 76,874 | 88,268 | |
Related Allowance | 9,590 | 11,468 | |
With no allowance recorded: | |||
Recorded Investment | 77,172 | 51,256 | |
Unpaid Principal Balance | 80,355 | 64,177 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 127,483 | 131,026 | 100,052 |
Interest Income Recognized While on Impaired Status | 4,767 | 5,503 | 6,502 |
Commercial non-real estate | |||
With an allowance recorded: | |||
Recorded Investment | 14,177 | 17,950 | |
Unpaid Principal Balance | 17,241 | 28,755 | |
Related Allowance | 4,508 | 4,779 | |
With no allowance recorded: | |||
Recorded Investment | 8,905 | 13,983 | |
Unpaid Principal Balance | 18,047 | 38,924 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 28,938 | 41,489 | 45,592 |
Interest Income Recognized While on Impaired Status | 1,405 | 1,485 | 1,971 |
Residential real estate | |||
With an allowance recorded: | |||
Recorded Investment | 4,509 | 5,177 | |
Unpaid Principal Balance | 5,153 | 5,874 | |
Related Allowance | 2,210 | 2,581 | |
With no allowance recorded: | |||
Recorded Investment | 2,177 | 2,574 | |
Unpaid Principal Balance | 4,574 | 9,613 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 7,156 | 8,900 | 11,773 |
Interest Income Recognized While on Impaired Status | 452 | 453 | 576 |
Consumer | |||
With an allowance recorded: | |||
Recorded Investment | 160 | 280 | |
Unpaid Principal Balance | 165 | 287 | |
Related Allowance | 61 | 86 | |
With no allowance recorded: | |||
Recorded Investment | 1 | 13 | |
Unpaid Principal Balance | 118 | 950 | |
Average recorded investment and interest income recognized on impaired loans: | |||
Average Recorded Investment | 219 | 369 | 309 |
Interest Income Recognized While on Impaired Status | $ 14 | $ 47 | $ 55 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings on Accruing and Nonaccrual Financing Receivables (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 19,783 | $ 32,490 | |
Financing receivable, modifications, number of contracts | contract | 7 | 26 | 38 |
Financing receivable, modifications, pre-modification recorded investment | $ 12,867 | $ 24,689 | $ 46,393 |
Financing receivable, modifications, post-modification recorded investment | $ 12,867 | $ 24,689 | $ 46,393 |
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 | $ 77,156 | $ 71,334 | |
Financing receivable, modifications, number of contracts | contract | 9 | 26 | 12 |
Financing receivable, modifications, pre-modification recorded investment | $ 9,990 | $ 24,139 | $ 2,150 |
Financing receivable, modifications, post-modification recorded investment | $ 9,990 | $ 24,139 | $ 2,103 |
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 | 7 |
Change in recorded investment due to chargeoffs at time of modification, pre-modification | $ 0 | $ 0 | $ 47 |
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 | $ 2,649 | $ 1,121 | |
Financing receivable, modifications, number of contracts | contract | 1 | 2 | 5 |
Financing receivable, modifications, pre-modification recorded investment | $ 2,041 | $ 3,726 | $ 8,611 |
Financing receivable, modifications, post-modification recorded investment | 2,041 | 3,726 | $ 8,611 |
Commercial real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 2,616 | $ 5,351 | |
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 | $ 13,248 | $ 22,678 | |
Financing receivable, modifications, number of contracts | contract | 5 | 13 | 20 |
Financing receivable, modifications, pre-modification recorded investment | $ 10,753 | $ 18,902 | $ 28,123 |
Financing receivable, modifications, post-modification recorded investment | 10,753 | 18,902 | $ 28,123 |
Agriculture | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 73,741 | $ 59,633 | |
Financing receivable, modifications, number of contracts | contract | 9 | 18 | 6 |
Financing receivable, modifications, pre-modification recorded investment | $ 9,990 | $ 20,197 | $ 1,128 |
Financing receivable, modifications, post-modification recorded investment | 9,990 | 20,197 | $ 1,082 |
Commercial non-real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 3,420 | $ 8,369 | |
Financing receivable, modifications, number of contracts | contract | 0 | 9 | 12 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 2,044 | $ 9,617 |
Financing receivable, modifications, post-modification recorded investment | 0 | 2,044 | $ 9,617 |
Commercial non-real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 656 | $ 5,641 | |
Financing receivable, modifications, number of contracts | contract | 0 | 3 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 3,788 | $ 760 |
Financing receivable, modifications, post-modification recorded investment | 0 | 3,788 | $ 760 |
Residential real estate | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 389 | $ 311 | |
Financing receivable, modifications, number of contracts | contract | 0 | 1 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 9 | $ 42 |
Financing receivable, modifications, post-modification recorded investment | 0 | 9 | $ 42 |
Residential real estate | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 143 | $ 688 | |
Financing receivable, modifications, number of contracts | contract | 0 | 2 | 3 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 133 | $ 254 |
Financing receivable, modifications, post-modification recorded investment | 0 | 133 | $ 253 |
Consumer | Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 77 | $ 11 | |
Financing receivable, modifications, number of contracts | contract | 1 | 1 | 0 |
Financing receivable, modifications, pre-modification recorded investment | $ 73 | $ 8 | $ 0 |
Financing receivable, modifications, post-modification recorded investment | 73 | 8 | $ 0 |
Consumer | Nonaccrual | |||
Financing Receivable, Modifications [Line Items] | |||
Recorded value of TDR balance | $ 0 | $ 21 | |
Financing receivable, modifications, number of contracts | contract | 0 | 3 | 1 |
Financing receivable, modifications, pre-modification recorded investment | $ 0 | $ 21 | $ 8 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 21 | $ 8 |
Loans - Subsequent Defaults on
Loans - Subsequent Defaults on Modified Loans (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 1 | 3 | 6 |
Recorded Investment | $ | $ 366 | $ 8,383 | $ 7,590 |
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 | 1 | 2 | 2 |
Recorded Investment | $ | $ 366 | $ 8,383 | $ 7,307 |
Commercial non-real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 1 | 2 |
Recorded Investment | $ | $ 0 | $ 0 | $ 275 |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | contract | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 8 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | $ 63,503 | $ 64,642 | $ 57,200 |
Charge-offs | (19,904) | (25,880) | (14,166) |
Recoveries | 2,955 | 3,202 | 4,653 |
Provision | 17,754 | 22,210 | 18,011 |
Allowance for loan losses, ending balance | 64,540 | 63,503 | 64,642 |
Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 993 | ||
Recoveries | 700 | 1,100 | |
(Improvement) impairment of ASC 310-30 loans | 232 | (671) | (1,056) |
Allowance for loan losses, ending balance | 1,206 | 993 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 16,941 | 17,946 | 18,014 |
Charge-offs | (3,925) | (2,043) | (3,625) |
Recoveries | 533 | 485 | 719 |
Provision | 3,231 | 643 | 3,148 |
Allowance for loan losses, ending balance | 16,777 | 16,941 | 17,946 |
Commercial real estate | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 682 | ||
(Improvement) impairment of ASC 310-30 loans | (3) | (90) | (310) |
Allowance for loan losses, ending balance | 679 | 682 | |
Agriculture | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 25,757 | 25,115 | 13,952 |
Charge-offs | (9,473) | (7,853) | (4,294) |
Recoveries | 332 | 415 | 556 |
Provision | 11,355 | 7,965 | 14,901 |
Allowance for loan losses, ending balance | 28,121 | 25,757 | 25,115 |
Agriculture | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 115 | ||
(Improvement) impairment of ASC 310-30 loans | 150 | 115 | 0 |
Allowance for loan losses, ending balance | 265 | 115 | |
Commercial non-real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 14,114 | 12,990 | 15,996 |
Charge-offs | (3,813) | (12,576) | (2,629) |
Recoveries | 994 | 652 | 1,429 |
Provision | 2,315 | 13,048 | (1,736) |
Allowance for loan losses, ending balance | 13,610 | 14,114 | 12,990 |
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 | 0 | (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 | 5,347 | 7,106 | 8,025 |
Charge-offs | (569) | (809) | (1,157) |
Recoveries | 337 | 507 | 495 |
Provision | (451) | (761) | 419 |
Allowance for loan losses, ending balance | 4,749 | 5,347 | 7,106 |
Residential real estate | Receivables acquired with deteriorated credit quality | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 196 | ||
(Improvement) impairment of ASC 310-30 loans | 85 | (696) | (676) |
Allowance for loan losses, ending balance | 262 | 196 | |
Consumer | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 329 | 438 | 348 |
Charge-offs | (192) | (196) | (206) |
Recoveries | 141 | 102 | 149 |
Provision | (21) | (15) | 147 |
Allowance for loan losses, ending balance | 257 | 329 | 438 |
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 | 0 |
Allowance for loan losses, ending balance | 0 | 0 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, beginning balance | 1,015 | 1,047 | 865 |
Charge-offs | (1,932) | (2,403) | (2,255) |
Recoveries | 618 | 1,041 | 1,305 |
Provision | 1,325 | 1,330 | 1,132 |
Allowance for loan losses, ending balance | 1,026 | 1,015 | 1,047 |
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 _4
Allowance for Loan and Lease Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and written loan commitments at fair value under the fair value option | $ 865,386 | $ 1,016,576 | ||
Loan held for sale | 5,456 | 7,456 | ||
Guaranteed loans | 8,396,314 | 7,787,016 | ||
Allowance for loan losses | 64,540 | 63,503 | $ 64,642 | $ 57,200 |
Recoveries | 2,955 | 3,202 | 4,653 | |
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 | 70,845 | 92,595 | ||
Allowance for loan losses | 1,206 | 993 | ||
(Improvement) impairment of ASC 310-30 loans | 232 | (671) | (1,056) | |
Recoveries | 700 | $ 1,100 | ||
Loans Guaranteed by US Government Authorities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Guaranteed loans | 168,600 | 168,300 | ||
Loans Guaranteed by US Government Authorities | Loans And Leases With Allowance For Doubtful Accounts [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Guaranteed loans | $ 160,300 | $ 168,300 |
Allowance for Loan and Lease _5
Allowance for Loan and Lease Losses - Summary of Allowance for Loan Losses by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 20,037 | $ 22,535 | ||
Collectively evaluated for impairment | 43,297 | 39,975 | ||
Total allowance | 64,540 | 63,503 | $ 64,642 | $ 57,200 |
Financing Receivables | ||||
Individually evaluated for impairment | 208,054 | 207,923 | ||
Collectively evaluated for impairment | 8,117,415 | 7,486,498 | ||
Loans Outstanding | 8,396,314 | 7,787,016 | ||
Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 1,206 | 993 | ||
Financing Receivables | ||||
Loans Outstanding | 70,845 | 92,595 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 3,668 | 3,621 | ||
Collectively evaluated for impairment | 12,430 | 12,638 | ||
Total allowance | 16,777 | 16,941 | 17,946 | 18,014 |
Financing Receivables | ||||
Individually evaluated for impairment | 40,900 | 37,471 | ||
Collectively evaluated for impairment | 4,053,712 | 3,487,232 | ||
Loans Outstanding | 4,121,613 | 3,554,802 | ||
Commercial real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 679 | 682 | ||
Financing Receivables | ||||
Loans Outstanding | 27,001 | 30,099 | ||
Agriculture | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 9,590 | 11,468 | ||
Collectively evaluated for impairment | 18,266 | 14,174 | ||
Total allowance | 28,121 | 25,757 | 25,115 | 13,952 |
Financing Receivables | ||||
Individually evaluated for impairment | 137,225 | 130,475 | ||
Collectively evaluated for impairment | 1,823,947 | 1,702,634 | ||
Loans Outstanding | 1,963,987 | 1,840,283 | ||
Agriculture | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 265 | 115 | ||
Financing Receivables | ||||
Loans Outstanding | 2,815 | 7,174 | ||
Commercial non-real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 4,508 | 4,779 | ||
Collectively evaluated for impairment | 9,102 | 9,335 | ||
Total allowance | 13,610 | 14,114 | 12,990 | 15,996 |
Financing Receivables | ||||
Individually evaluated for impairment | 23,082 | 31,933 | ||
Collectively evaluated for impairment | 1,364,511 | 1,333,888 | ||
Loans Outstanding | 1,388,009 | 1,367,741 | ||
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 | 416 | 1,920 | ||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 2,210 | 2,581 | ||
Collectively evaluated for impairment | 2,277 | 2,570 | ||
Total allowance | 4,749 | 5,347 | 7,106 | 8,025 |
Financing Receivables | ||||
Individually evaluated for impairment | 6,686 | 7,751 | ||
Collectively evaluated for impairment | 780,047 | 854,330 | ||
Loans Outstanding | 826,758 | 914,817 | ||
Residential real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 262 | 196 | ||
Financing Receivables | ||||
Loans Outstanding | 40,025 | 52,736 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 61 | 86 | ||
Collectively evaluated for impairment | 196 | 243 | ||
Total allowance | 257 | 329 | 438 | 348 |
Financing Receivables | ||||
Individually evaluated for impairment | 161 | 293 | ||
Collectively evaluated for impairment | 48,711 | 65,207 | ||
Loans Outstanding | 49,460 | 66,166 | ||
Consumer | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance | 0 | 0 | ||
Financing Receivables | ||||
Loans Outstanding | 588 | 666 | ||
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,026 | 1,015 | ||
Total allowance | 1,026 | 1,015 | $ 1,047 | $ 865 |
Financing Receivables | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 46,487 | 43,207 | ||
Loans Outstanding | 46,487 | 43,207 | ||
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 _3
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 44,131 | $ 38,124 | $ 44,489 |
Acquisition | 0 | 0 | 3,662 |
Accretion | (13,193) | (13,847) | (9,971) |
Reclassification from nonaccretable difference | 4,035 | 19,854 | (56) |
Balance at end of period | $ 34,973 | $ 44,131 | $ 38,124 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired with Deteriorated Credit Quality - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | $ 160,379 | $ 193,864 |
Recorded Investment | 70,845 | 92,595 |
Carrying Value | 69,640 | 91,602 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 100,761 | 110,797 |
Recorded Investment | 27,001 | 30,099 |
Carrying Value | 26,322 | 29,417 |
Agriculture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 4,841 | 10,463 |
Recorded Investment | 2,815 | 7,174 |
Carrying Value | 2,551 | 7,059 |
Commercial non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 7,475 | 9,825 |
Recorded Investment | 416 | 1,920 |
Carrying Value | 416 | 1,920 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 46,646 | 61,981 |
Recorded Investment | 40,025 | 52,736 |
Carrying Value | 39,763 | 52,540 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 656 | 798 |
Recorded Investment | 588 | 666 |
Carrying Value | $ 588 | $ 666 |
FDIC Indemnification Asset - Sc
FDIC Indemnification Asset - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
FDIC Indemnification Asset [Roll Forward] | |||
Balance at beginning of year | $ 5,704 | $ 10,777 | $ 14,722 |
Amortization | (2,778) | (4,748) | (3,836) |
Changes in expected reimbursements from FDIC for changes in expected credit losses | (122) | (45) | (278) |
Changes in reimbursable expenses | (1,072) | (986) | (791) |
Reimbursements of covered losses to the FDIC | 770 | 706 | 960 |
Balance at end of year | $ 2,502 | $ 5,704 | $ 10,777 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 146,780 | $ 142,333 |
Accumulated depreciation | (32,941) | (30,124) |
Premise and equipment, net | 113,839 | 112,209 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,598 | 25,973 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 85,960 | 89,927 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 27,490 | 26,160 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 7,732 | $ 273 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 7,500 | $ 7,600 | $ 7,500 |
Property held for sale | $ 1,104 | $ 5,147 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amounts and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Derivative [Line Items] | ||
Positive Fair Value | $ 24,257 | $ 1,850 |
Negative Fair Value | (4,419) | (19,005) |
Derivatives Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,349,299 | 1,142,939 |
Positive Fair Value | 24,257 | 5,630 |
Negative Fair Value | (4,419) | (22,785) |
Derivatives Not Designated as Hedging Instruments | Mortgage loan commitments | ||
Derivative [Line Items] | ||
Notional Amount | 22,195 | 37,765 |
Positive Fair Value | 0 | 0 |
Negative Fair Value | (28) | (48) |
Derivatives Not Designated as Hedging Instruments | Mortgage loan forward sale contracts | ||
Derivative [Line Items] | ||
Notional Amount | 27,408 | 43,628 |
Positive Fair Value | 28 | 48 |
Negative Fair Value | 0 | 0 |
Financial institution counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,082,630 | 1,025,474 |
Positive Fair Value | 22,696 | 4,967 |
Negative Fair Value | (2,231) | (22,737) |
Customer counterparties | Derivatives Not Designated as Hedging Instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 217,066 | 36,072 |
Positive Fair Value | 1,533 | 615 |
Negative Fair Value | $ (2,160) | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Offsetting Liabilities and Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative financial assets, gross amount | $ 24,257 | $ 1,850 |
Derivative financial assets, amount offset | (2,231) | (1,850) |
Derivative financial assets, net amount presented in Consolidated Balance Sheets | (20,115) | 0 |
Derivative financial assets, net amount presented in Consolidated Balance Sheets | 1,911 | 0 |
Derivative financial liabilities, gross amount | (4,419) | (19,005) |
Derivative financial liabilities, amount offset | 2,231 | 1,850 |
Derivative financial liabilities, net amount presented in Consolidated Balance Sheets | 0 | 0 |
Derivative financial liabilities, net amount presented in Consolidated Balance Sheets | (2,188) | (17,155) |
Collateral held for initial margin | $ 6,200 | 2,300 |
Securities posted as collateral for financial institution counterparties | $ 25,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments - Narrative (Details) - Risk Participation Agreements $ in Millions | Sep. 30, 2018USD ($) |
Derivative [Line Items] | |
Notional amount sold | $ 37.4 |
Exposure from RPAs | $ 0.4 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect on the Consolidated Statement of Comprehensive Income (Details) - Noninterest income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | $ 44,596 | $ 49,900 | $ (48,658) |
Mortgage loan commitments | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | (28) | (48) | 66 |
Mortgage loan forward sale contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income | $ 28 | $ 48 | $ (66) |
The Fair Value Option For Cer_3
The Fair Value Option For Certain Loans - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Eligible item for the fair value option | $ (34.8) | $ 8.8 | |
Loans greater than 90 days past due or in nonaccrual status | 30.9 | 14.7 | |
Loans greater than 90 days past due or in nonaccrual status, unpaid principal balance | 34.7 | 17 | |
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 | 0.2 | 0.9 | $ 1.6 |
Fair value, option, aggregate differences, long-term debt instruments | $ 900 | $ 1,010 |
The Fair Value Option For Cer_4
The Fair Value Option For Certain Loans - Schedule of Fair Value Option (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net (decrease) increase in fair value of loans at fair value | $ (45,407) | $ (65,231) | $ 26,314 |
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 | (45,407) | (65,231) | 26,314 |
Long-term loans and written loan commitments | Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net (decrease) increase in fair value of loans at fair value | $ (45,407) | $ (65,231) | $ 26,314 |
Goodwill - Summary of Changes t
Goodwill - Summary of Changes to the Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 739,023,000 | $ 739,023,000 | |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Core Deposits and Other Intan_3
Core Deposits and Other Intangibles - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 16,341 | $ 16,341 |
Accumulated amortization | (8,629) | (6,967) |
Net intangible assets | 7,712 | 9,374 |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,339 | 7,339 |
Accumulated amortization | (2,610) | (1,579) |
Net intangible assets | 4,729 | 5,760 |
Brand Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,464 | 8,464 |
Accumulated amortization | (5,828) | (5,264) |
Net intangible assets | 2,636 | 3,200 |
Other Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 538 | 538 |
Accumulated amortization | (191) | (124) |
Net intangible assets | $ 347 | $ 414 |
Core Deposits and Other Intan_4
Core Deposits and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of core deposits and other intangibles | $ 1,662 | $ 2,358 | $ 3,264 |
Core Deposits and Other Intan_5
Core Deposits and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 1,538 | |
2,020 | 1,430 | |
2,021 | 1,334 | |
2,022 | 1,249 | |
2,023 | 967 | |
2024 and thereafter | 1,194 | |
Net intangible assets | $ 7,712 | $ 9,374 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Composition of deposits: | ||
Noninterest-bearing demand | $ 1,842,704 | $ 1,856,126 |
Interest-bearing demand | 6,043,717 | 5,847,432 |
Time deposits, $250,000 or more | 383,868 | 273,365 |
Time deposits, less than $250,000 | 1,463,210 | 1,000,690 |
Total deposits | 9,733,499 | 8,977,613 |
Brokered deposits | $ 600,200 | 294,400 |
Reciprocal deposits | 431,000 | |
Commercial deposits | $ 431,000 |
Deposits - Summary of Scheduled
Deposits - Summary of Scheduled Maturities of Time Deposits (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Fiscal year maturity: | |
2,018 | $ 1,245,059 |
2,019 | 433,142 |
2,020 | 95,231 |
2,021 | 47,045 |
2,022 | 25,369 |
2023 and thereafter | 1,232 |
Total | $ 1,847,078 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase, amortized cost | $ 109.9 | $ 139.3 |
Securities sold under agreements to repurchase, fair value | $ 104.6 | $ 137.4 |
Percentage of total borrowed funds (as a percent) | 102.00% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Maturity Schedule of Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | $ 90,907 | $ 132,636 |
Municipal securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 3,626 |
Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 90,907 | 129,010 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 90,907 | 132,636 |
Overnight and Continuous | Municipal securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 0 | 3,626 |
Overnight and Continuous | Mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreements | 90,907 | 129,010 |
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 | 0 |
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 | $ 0 |
FHLB Advances and Other Borro_3
FHLB Advances and Other Borrowings - Summary of Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 275,000 | $ 643,200 |
Fair value adjustment | 0 | 14 |
Total FHLB advances and other borrowings | 275,000 | 643,214 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 175,000 | $ 56,000 |
Notes payable to banks | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 1.05% | 0.53% |
Notes payable to banks | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.66% | 3.66% |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank (FHLB) notes payable and fed funds advance | $ 0 | $ 512,200 |
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 | $ 100,000 | $ 75,000 |
FHLB Advances and Other Borro_4
FHLB Advances and Other Borrowings - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 1,820,000,000 | $ 1,550,000,000 |
Loans pledged to the Federal Home Loan Bank | 3,950,000,000 | 3,710,000,000 |
Revolving line of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding advances | 0 | 0 |
Revolving line of credit | FRB Discount Window Loan | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 1,590,000,000 | 1,890,000,000 |
Loans pledged to the Federal Reserve Board Discount Window | $ 1,890,000,000 | $ 2,550,000,000 |
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% | |
Federal Home Loan Bank [Member] | Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 150,000,000 |
FHLB Advances and Other Borro_5
FHLB Advances and Other Borrowings - Summary of Due or Callable Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 108,468 | $ 108,302 |
FHLB Advances and Other Borrowings | ||
Debt Instrument [Line Items] | ||
2,019 | 100,000 | |
2,020 | 150,000 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 25,000 | |
2024 and thereafter | 0 | |
Total | $ 275,000 |
Subordinated Debentures and S_3
Subordinated Debentures and Subordinated Notes Payable - Junior Subordinated Deferrable Interest Debentures (Details) $ / shares in Units, $ in Thousands | Jul. 05, 2007$ / sharesshares | Dec. 07, 2006$ / sharesshares | Mar. 10, 2006$ / sharesshares | Jun. 01, 2005$ / sharesshares | Dec. 17, 2003$ / sharesshares | Sep. 25, 2003$ / sharesshares | Dec. 19, 2002$ / sharesshares | Sep. 30, 2018USD ($)trust | Sep. 30, 2017USD ($) |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 108,468 | $ 108,302 | |||||||
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 non-consolidated trusts | |||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||||
Amount of Debentures eligible for treatment as Tier 1 capital | $ | $ 73,603 | 73,511 | |||||||
Common shares held in other assets | $ | $ 2,520 | 2,520 | |||||||
HFB Capital Trust V | Junior subordinated debentures payable to non-consolidated trusts | |||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.83% | ||||||||
Common shares held in other assets | $ | $ 310 | $ 310 |
Subordinated Debentures and S_4
Subordinated Debentures and Subordinated Notes Payable - Subordinated Notes Payable (Details) - Subordinated notes payable - USD ($) | 12 Months Ended | 60 Months Ended | ||
Sep. 30, 2018 | Aug. 15, 2025 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 35,000,000 | |||
Stated interest rate (as a percent) | 4.875% | 4.875% | ||
Redemption price, percentage of principal (as a percent) | 100.00% | |||
Unamortized debt issuance costs | $ 135,000 | $ 209,000 | ||
London Interbank Offered Rate (LIBOR) | Forecast | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.15% |
Subordinated Debentures and S_5
Subordinated Debentures and Subordinated Notes Payable - Summary of Subordinated Debentures and Subordinated Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||
Total | $ 108,468 | $ 108,302 | |
Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | 75,920 | 75,920 | |
Common Shares Held in Other Assets | 2,520 | 2,520 | |
Less: fair value adjustment | (2,317) | (2,409) | |
Total | $ 73,603 | 73,511 | |
Subordinated notes payable | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 4.875% | 4.875% | |
Unamortized debt issuance costs | $ (135) | (209) | |
Total | 34,865 | 34,791 | |
GW Statutory Trust IV | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | 23,093 | 23,093 | |
Common Shares Held in Other Assets | $ 693 | $ 693 | |
Basis spread on variable rate (as a percent) | 2.85% | 2.85% | |
GW Statutory Trust VI | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 30,928 | $ 30,928 | |
Common Shares Held in Other Assets | $ 928 | $ 928 | |
Basis spread on variable rate (as a percent) | 1.48% | 1.48% | |
SSB Trust II | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 2,062 | $ 2,062 | |
Common Shares Held in Other Assets | $ 62 | $ 62 | |
Basis spread on variable rate (as a percent) | 1.85% | 1.85% | |
HFB Capital Trust III | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 5,155 | $ 5,155 | |
Common Shares Held in Other Assets | $ 155 | 155 | |
Basis spread on variable rate (as a percent) | 3.35% | ||
HFB Capital Trust IV | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 7,217 | 7,217 | |
Common Shares Held in Other Assets | $ 217 | 217 | |
Basis spread on variable rate (as a percent) | 3.10% | ||
HFB Capital Trust V | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 5,310 | 5,310 | |
Common Shares Held in Other Assets | $ 310 | 310 | |
Basis spread on variable rate (as a percent) | 1.83% | ||
HFB Capital Trust VI | Junior subordinated debentures payable to non-consolidated trusts | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 2,155 | 2,155 | |
Common Shares Held in Other Assets | $ 155 | 155 | |
Basis spread on variable rate (as a percent) | 1.65% | ||
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% | 4.875% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Currently paid or payable | |||
Federal | $ 42,261 | $ 56,171 | $ 51,749 |
State | 10,556 | 10,639 | 8,677 |
Current income tax expense (benefit) | 52,817 | 66,810 | 60,426 |
Deferred tax expense | |||
Federal | 20,205 | 2,477 | (1,513) |
State | 1,097 | 154 | (50) |
Total | 21,302 | 2,631 | (1,563) |
Total provision for income taxes | $ 74,119 | $ 69,441 | $ 58,863 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax percentage (as a percent) | 24.50% | ||
Income tax expense computed at the statutory rate | $ 56,915 | $ 74,979 | $ 63,041 |
State income taxes, net of federal benefit | 8,795 | 7,015 | 5,608 |
Tax exempt interest income | (5,778) | (7,973) | (7,534) |
Impact of enacted federal income tax rate reduction | (424) | (2,153) | 0 |
Effective Income Tax Rate Reconciliation, Federal Income Tax Rate, Deduction, Amount | 13,709 | 0 | 0 |
Other | 902 | (2,427) | (2,252) |
Total provision for income taxes | $ 74,119 | $ 69,441 | $ 58,863 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 15,709 | $ 23,730 |
Compensation | 2,577 | 6,227 |
Securities available for sale | 10,305 | 3,413 |
Other real estate owned | 325 | 763 |
Core deposit intangible and other fair value adjustments | 3,677 | 6,058 |
Excess tax basis of FDIC indemnification asset and clawback liability | 3,633 | 4,563 |
Excess tax basis of loans acquired over carrying value | 3,669 | 9,417 |
Other reserves | 2,787 | 4,406 |
Other | 5,711 | 6,922 |
Total deferred tax assets | 48,393 | 65,499 |
Deferred tax liabilities: | ||
Goodwill and other intangibles | (11,567) | (13,784) |
Premises and equipment | (6,248) | (8,828) |
Other | (446) | (487) |
Total deferred tax liabilities | (18,261) | (23,099) |
Net deferred tax assets | $ 30,132 | $ 42,400 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Tax Contingency [Line Items] | ||||
Income tax percentage (as a percent) | 24.50% | |||
Provision (benefit) for income taxes | $ (19,700) | |||
Revaluation adjustment | $ 13,600 | |||
Reclassification from AOCI to retained earnings | [1] | 0 | ||
Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Income taxes receivable | (3,500) | $ (4,600) | ||
Retained Earnings | ||||
Income Tax Contingency [Line Items] | ||||
Reclassification from AOCI to retained earnings | [1] | 2,353 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Income Tax Contingency [Line Items] | ||||
Reclassification from AOCI to retained earnings | [1] | $ (2,353) | ||
Tax Cuts And Jobs Act Of 2017 | ||||
Income Tax Contingency [Line Items] | ||||
Income tax percentage (as a percent) | 31.94303% | 32.41468% | ||
Tax Cuts And Jobs Act Of 2017, Excluding Nonrecurring Deferred Taxes | ||||
Income Tax Contingency [Line Items] | ||||
Income tax percentage (as a percent) | 26.08787% | 32.41468% | ||
[1] | Reclassification due to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 1, New Accounting Pronouncements and Note 18, Income Taxes, for additional information. |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018USD ($)year | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Nov. 27, 2017USD ($) | |
Pension Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Expected long-term return on plan assets (as a percent) | 8.00% | 8.00% | ||
Total pension plan assets | $ 0 | $ 3,093 | $ 3,359 | |
Accumulated benefit obligation | $ 0 | 5,372 | $ 5,500 | |
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 | $ 5,700 | $ 5,300 | $ 4,700 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Pension Plan Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Nov. 27, 2017 | |
Benefit obligations, end of period | ||||
Net unrealized holding (loss) gain arising during the period | $ (329) | $ 329 | $ 0 | |
Pension Plan | ||||
Changes in benefit obligations: | ||||
Benefit obligations, beginning of period | 5,372 | 6,355 | ||
Service cost | 53 | 50 | 21 | |
Interest cost | 111 | 223 | 176 | |
Benefits paid | (5,507) | (803) | ||
Assumption changes | 0 | (286) | ||
Actuarial loss | (29) | (167) | ||
Benefit obligations, end of period | 0 | 5,372 | 6,355 | |
Benefit obligations, end of period | ||||
Fair value of plan assets, beginning of period | 3,093 | 3,359 | ||
Actual return on plan assets | 2 | 277 | ||
Company contributions | 2,412 | 260 | ||
Benefits paid | (5,507) | (803) | ||
Fair value of plan assets, end of period | 0 | 3,093 | 3,359 | |
Funded Status | 0 | (2,279) | ||
Net unrealized holding (loss) gain arising during the period | (329) | 329 | $ 0 | |
Accumulated benefit obligation | $ 0 | $ 5,372 | $ 5,500 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Net gain (loss) | $ (329) | $ 329 | $ 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 53 | 50 | 21 |
Interest cost | 111 | 223 | 176 |
Expected return on plan assets | 0 | (258) | (190) |
Amortization of prior losses | 0 | 0 | 50 |
Net periodic benefit cost | 164 | 15 | 57 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Net gain (loss) | (329) | 329 | 0 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (493) | $ 314 | $ (57) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used (Details) - Pension Plan | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted-average assumptions used to determine benefit obligations: | ||
Discount rate - pre-retirement (as a percent) | 3.83% | |
Discount rate - post-retirement (as a percent) | 3.83% | |
Weighted-average assumptions used to determine net periodic benefit costs: | ||
Discount rate - pre-retirement (as a percent) | 3.83% | 3.57% |
Discount rate - post-retirement (as a percent) | 3.83% | 3.57% |
Rate of compensation increase (as a percent) | 4.00% | 4.00% |
Expected long-term return on plan assets (as a percent) | 8.00% | 8.00% |
Employee Benefit Plans - Target
Employee Benefit Plans - Target Plan Asset Allocations (Details) - Pension Plan - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 0 | $ 3,093 | $ 3,359 |
Actual Asset Mix as a % of Market Value | 0.00% | 100.00% | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 0 | $ 3,093 | |
Actual Asset Mix as a % of Market Value | 0.00% | 100.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 0 | $ 3,093 | $ 3,359 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 3,093 | |
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 | 0 | 3,093 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 3,093 | |
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 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 5.5 | $ 6.5 | $ 3.5 |
Tax benefit from compensation expense | 1.7 | 2.5 | 1.3 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, compensation cost not yet recognized | $ 5 | ||
Share-based compensation, compensation cost not yet recognized, recognition period | 2 years 2 months 1 day | ||
Share-based compensation, fair value of vested awards | $ 1.9 | $ 1.4 | $ 0.8 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted and Performance Stock (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | 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) | 180,337 | 160,335 | 80,446 |
Granted (shares) | 89,376 | 90,363 | 113,543 |
Vested and issued (shares) | (97,682) | (68,293) | (25,729) |
Forfeited (shares) | (8,744) | (2,068) | (7,925) |
Canceled (shares) | 0 | 0 | 0 |
Shares, ending balance (shares) | 163,287 | 180,337 | 160,335 |
Vested, but not issuable (shares) | 39,514 | 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) | $ 33.06 | $ 26.89 | $ 18.18 |
Granted (in USD per share) | 41.07 | 39.35 | 30.95 |
Vested and issued (in USD per share) | 32.11 | 26.97 | 18.11 |
Forfeited (in USD per share) | 35.99 | 30.91 | 25.09 |
Canceled (in USD per share) | 0 | 0 | 0 |
Shares, ending balance (in USD per share) | 37.86 | 33.06 | 26.89 |
Vested, but not issuable (in USD per share) | $ 32.90 | $ 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) | 133,604 | 236,185 | 211,026 |
Granted (shares) | 53,682 | 137,612 | 43,371 |
Vested and issued (shares) | (7,017) | (235,055) | (55) |
Forfeited (shares) | (5,073) | (5,138) | (18,157) |
Canceled (shares) | 0 | 0 | 0 |
Shares, ending balance (shares) | 175,196 | 133,604 | 236,185 |
Vested, but not issuable (shares) | 5,612 | 5,612 | 0 |
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) | $ 33.39 | $ 20.28 | $ 18 |
Granted (in USD per share) | 29.52 | 39.43 | 30.78 |
Vested and issued (in USD per share) | 18 | 18 | 18 |
Forfeited (in USD per share) | 37.75 | 19.80 | 18.83 |
Canceled (in USD per share) | 0 | 0 | 0 |
Shares, ending balance (in USD per share) | 36.29 | 33.39 | 20.28 |
Vested, but not issuable (in USD per share) | $ 18 | $ 18 | $ 0 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Great Western Bancorp, Inc. | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,208,852 | $ 1,101,899 |
Actual, Percentage | 12.00% | 11.40% |
For Capital Adequacy Purposes, Amount | $ 604,637 | $ 579,947 |
For Capital Adequacy Purposes, Percentage | 6.00% | 6.00% |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,308,875 | $ 1,200,885 |
Actual, Percentage | 13.00% | 12.50% |
For Capital Adequacy Purposes, Amount | $ 806,182 | $ 768,566 |
For Capital Adequacy Purposes, Percentage | 8.00% | 8.00% |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,208,852 | $ 1,101,899 |
Actual, Percentage | 10.70% | 10.30% |
For Capital Adequacy Purposes, Actual | $ 451,939 | $ 427,922 |
For Capital Adequacy Purposes, Percentage | 4.00% | 4.00% |
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,135,249 | $ 1,028,389 |
Actual, Percentage | 11.30% | 10.70% |
For Capital Adequacy Purposes, Actual | $ 453,478 | $ 432,500 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
Great Western Bank | ||
Tier 1 risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,168,110 | $ 1,112,466 |
Actual, Percentage | 11.60% | 11.60% |
For Capital Adequacy Purposes, Amount | $ 604,467 | $ 575,413 |
For Capital Adequacy Purposes, Percentage | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 805,957 | $ 767,218 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 8.00% | 8.00% |
Total risk based capital (to risk-weighted assets): | ||
Actual, Amount | $ 1,233,133 | $ 1,176,451 |
Actual, Percentage | 12.20% | 12.20% |
For Capital Adequacy Purposes, Amount | $ 805,957 | $ 771,443 |
For Capital Adequacy Purposes, Percentage | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,007,446 | $ 964,304 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Percentage | 10.00% | 10.00% |
Tier 1 leverage capital (to average assets): | ||
Actual, Amount | $ 1,168,110 | $ 1,112,466 |
Actual, Percentage | 10.30% | 10.40% |
For Capital Adequacy Purposes, Actual | $ 452,404 | $ 427,872 |
For Capital Adequacy Purposes, Percentage | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 565,505 | $ 534,839 |
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 | $ 1,168,110 | $ 1,112,466 |
Actual, Percentage | 11.60% | 11.60% |
For Capital Adequacy Purposes, Actual | $ 453,351 | $ 431,560 |
For Capital Adequacy Purposes, Percentage | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual | $ 654,840 | $ 623,365 |
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, 2018 | Sep. 30, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans repurchased during period | $ 3,300 | $ 2,300 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | 2,344,550 | 2,515,653 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments representing credit risk | $ 69,613 | $ 70,186 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 5,400 | $ 5,400 | $ 5,100 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 5,156 | ||
2,020 | 4,640 | ||
2,021 | 3,299 | ||
2,022 | 2,753 | ||
2,023 | 2,192 | ||
2024 and thereafter | 5,403 | ||
Total | $ 23,443 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases, renewal term | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases, renewal term | 14 years |
Transactions with Related Par_2
Transactions with Related Parties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | |||
Interest on related party notes payable | $ 0 | $ 0 | $ 0 |
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 | 0.1 | $ 0.1 | |
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 | $ 0.1 | $ 0.1 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,385,650 | $ 1,367,960 |
Fair value loans | 865,386 | 1,016,576 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 167,172 | 228,603 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,149,707 | 1,065,737 |
States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 67,775 | 72,586 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,385,650 | 1,367,960 |
Derivatives-assets | 1,911 | 0 |
Fair value of derivatives | 2,188 | 17,155 |
Fair value loans | 865,386 | 1,016,576 |
Loan servicing rights | 3,087 | 4,074 |
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 | 167,172 | 228,603 |
Fair value, measurements, recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,149,707 | 1,065,737 |
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 | 67,775 | 72,586 |
Fair value, measurements, recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 996 | 1,034 |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 167,172 | 228,603 |
Derivatives-assets | 0 | 0 |
Fair value of derivatives | 0 | 0 |
Fair value loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Fair value, measurements, recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 167,172 | 228,603 |
Fair value, measurements, recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 1 | States and political subdivision securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,217,508 | 1,138,288 |
Derivatives-assets | 1,911 | 0 |
Fair value of derivatives | 2,188 | 17,155 |
Fair value loans | 865,386 | 1,016,576 |
Loan servicing rights | 0 | 0 |
Fair value, measurements, recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value, measurements, recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,149,707 | 1,065,737 |
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 | 66,805 | 71,517 |
Fair value, measurements, recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 996 | 1,034 |
Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 970 | 1,069 |
Derivatives-assets | 0 | 0 |
Fair value of derivatives | 0 | 0 |
Fair value loans | 0 | 0 |
Loan servicing rights | 3,087 | 4,074 |
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 | 970 | 1,069 |
Fair value, measurements, recurring | Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Other Available-for-Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ 1,069 | $ 1,315 | $ 1,835 |
Additions | 149 | 0 | 15 |
Principal paydown | (248) | (246) | (235) |
Realized and unrealized (loss) ¹ | 0 | 0 | (300) |
Balance, end of period | 970 | 1,069 | 1,315 |
Loan servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 4,074 | 5,781 | 0 |
Additions | 0 | 0 | 6,573 |
Principal paydown | (987) | (1,707) | (792) |
Realized and unrealized (loss) ¹ | $ 3,087 | 4,074 | 5,781 |
Balance, end of period | $ 4,074 | $ 5,781 |
Fair Value Measurements - Mortg
Fair Value Measurements - Mortgage Loans Held for Sale (Details) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | $ 22,225 | $ 7,728 |
Impaired loans | 188,017 | 185,388 |
Loans held for sale, at lower of cost or fair value | 5,456 | 7,456 |
Property held for sale | 1,104 | 5,147 |
Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Property held for sale | 0 | 0 |
Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 0 | 0 |
Impaired loans | 0 | 0 |
Loans held for sale, at lower of cost or fair value | 5,456 | 7,456 |
Property held for sale | 0 | 0 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 22,225 | 7,728 |
Impaired loans | 188,017 | 185,388 |
Loans held for sale, at lower of cost or fair value | 0 | 0 |
Property held for sale | $ 1,104 | $ 5,147 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Significant Unobservable Inputs Used for Level 3 Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Property held for sale | $ 1,104 | $ 5,147 |
Fair value, measurements, nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 22,225 | 7,728 |
Impaired loans | 188,017 | 185,388 |
Fair value, measurements, nonrecurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed property | 22,225 | 7,728 |
Impaired loans | 188,017 | $ 185,388 |
Property held for sale | $ 1,104 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Balance Sheet Grouping Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Carrying Amount | Level 1 | ||
Assets | ||
Cash and cash equivalents | $ 298,696 | $ 360,396 |
Carrying Amount | Level 3 | ||
Assets | ||
Loans, net excluding fair valued loans, loans held for sale and impaired loans | 8,357,065 | 7,881,018 |
Carrying Amount | Level 2 | ||
Assets | ||
Accrued interest receivable | 58,948 | 53,176 |
Cash surrender value of life insurance policies | 30,461 | 29,619 |
FHLB stock | 22,533 | 37,551 |
Liabilities | ||
Deposits | 9,733,499 | 8,977,613 |
FHLB advances and other borrowings | 275,000 | 643,214 |
Securities sold under repurchase agreements | 90,907 | 132,636 |
Accrued interest payable | 8,773 | 4,405 |
Subordinated debentures and subordinated notes payable | 108,468 | 108,302 |
Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 298,696 | 360,396 |
Fair Value | Level 3 | ||
Assets | ||
Loans, net excluding fair valued loans, loans held for sale and impaired loans | 8,231,829 | 7,798,134 |
Fair Value | Level 2 | ||
Assets | ||
Accrued interest receivable | 58,948 | 53,176 |
Cash surrender value of life insurance policies | 30,461 | 29,619 |
FHLB stock | 22,533 | 37,551 |
Liabilities | ||
Deposits | 9,734,971 | 8,978,926 |
FHLB advances and other borrowings | 275,797 | 645,421 |
Securities sold under repurchase agreements | 90,907 | 132,636 |
Accrued interest payable | 8,773 | 4,405 |
Subordinated debentures and subordinated notes payable | $ 107,841 | $ 108,293 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Weighted average common shares outstanding | 58,938,169 | 58,770,708 | 56,563,438 |
Dilutive effect of stock based compensation (in shares) | 193,481 | 258,674 | 165,912 |
Weighted average common shares outstanding for diluted earnings per share calculation | 59,131,650 | 59,029,382 | 56,729,350 |
Basic earnings per share (in dollars per share) | $ 2.68 | $ 2.46 | $ 2.14 |
Diluted earnings per share (in dollars per share) | $ 2.67 | $ 2.45 | $ 2.14 |
Performance stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 0 | |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Assets | ||||
Cash and cash equivalents | $ 298,696 | $ 360,396 | $ 524,611 | $ 237,770 |
Net deferred tax assets | 30,132 | 42,400 | ||
Other assets | 85,601 | 71,193 | ||
Total assets | 12,116,808 | 11,690,011 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,468 | 108,302 | ||
Accrued expenses and other liabilities | 68,383 | 73,246 | ||
Total liabilities | 10,276,257 | 9,935,011 | ||
Stockholders’ equity | ||||
Common stock | 589 | 588 | ||
Additional paid-in capital | 1,318,457 | 1,314,039 | ||
Retained earnings | 553,014 | 445,747 | ||
Accumulated other comprehensive income | (31,509) | (5,374) | ||
Total stockholders' equity | 1,840,551 | 1,755,000 | 1,663,391 | 1,459,346 |
Total liabilities and stockholders' equity | 12,116,808 | 11,690,011 | ||
Great Western Bancorp, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 72,924 | 15,004 | $ 6,521 | $ 2,274 |
Investment in subsidiaries | 1,873,422 | 1,839,293 | ||
Net deferred tax assets | 1,489 | 1,502 | ||
Other assets | 2,056 | 8,515 | ||
Total assets | 1,949,891 | 1,864,314 | ||
Liabilities and stockholders’ equity | ||||
Subordinated debentures and subordinated notes payable | 108,468 | 108,302 | ||
Accrued expenses and other liabilities | 872 | 1,012 | ||
Total liabilities | 109,340 | 109,314 | ||
Stockholders’ equity | ||||
Common stock | 589 | 588 | ||
Additional paid-in capital | 1,318,457 | 1,314,039 | ||
Retained earnings | 553,014 | 445,747 | ||
Accumulated other comprehensive income | (31,509) | (5,374) | ||
Total stockholders' equity | 1,840,551 | 1,755,000 | ||
Total liabilities and stockholders' equity | $ 1,949,891 | $ 1,864,314 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income | |||
Dividends on securities | $ 29,171 | $ 26,311 | $ 24,680 |
Expenses | |||
Interest on subordinated debentures and subordinated notes payable | 5,040 | 4,464 | 3,737 |
Salaries and employee benefits | 135,352 | 128,135 | 109,055 |
Other | 17,509 | 16,565 | 15,533 |
Income tax benefit | 74,119 | 69,441 | 58,863 |
Net income | 157,916 | 144,786 | 121,253 |
Great Western Bancorp, Inc. | |||
Income | |||
Dividends from subsidiary bank | 111,159 | 62,470 | 70,582 |
Dividends on securities | 51 | 123 | 223 |
Other | 103 | 62 | 48 |
Total income | 111,313 | 62,655 | 70,853 |
Expenses | |||
Interest on subordinated debentures and subordinated notes payable | 5,040 | 4,464 | 3,737 |
Salaries and employee benefits | 5,849 | 6,847 | 3,723 |
Professional fees | 1,038 | 631 | 378 |
Acquisition expenses | 0 | 0 | 1,010 |
Other | 2,456 | 2,204 | 2,512 |
Total expense | 14,383 | 14,146 | 11,360 |
Income before income tax and equity in undistributed net income of subsidiaries | 96,930 | 48,509 | 59,493 |
Income tax benefit | (3,075) | (8,147) | (3,414) |
Income before equity in undistributed net income of subsidiaries | 100,005 | 56,656 | 62,907 |
Equity in undistributed net income of subsidiaries | 57,911 | 88,130 | 58,346 |
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | |||
Net income | $ 157,916 | $ 144,786 | $ 121,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,093 | 13,599 | 16,259 |
Gain on redemption of subordinated debentures | 0 | (111) | 0 |
Stock-based compensation | 4,419 | 6,810 | 3,517 |
Deferred income taxes | 21,302 | 2,631 | (1,563) |
Changes in: | |||
Accrued interest payable and other liabilities | (2,742) | (64,517) | 20,078 |
Net cash provided by operating activities | 182,429 | 131,509 | 184,809 |
Investing activities | |||
Business acquisitions, net of cash acquired | 0 | 0 | (15,669) |
Net cash used in investing activities | (533,311) | (379,193) | (352,139) |
Financing activities | |||
Redemption of subordinated debentures | 0 | (3,625) | 0 |
Common stock repurchased | 0 | (5,605) | 0 |
Dividends paid | (53,002) | (43,474) | (31,419) |
Net cash provided by financing activities | 289,182 | 83,469 | 454,171 |
Net (decrease) increase in cash and cash equivalents | (61,700) | (164,215) | 286,841 |
Cash and cash equivalents, beginning of period | 360,396 | 524,611 | 237,770 |
Cash and cash equivalents, end of period | 298,696 | 360,396 | 524,611 |
Great Western Bancorp, Inc. | |||
Operating activities | |||
Net income | 157,916 | 144,786 | 121,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 166 | 165 | 36 |
Gain on redemption of subordinated debentures | 0 | (111) | 0 |
Stock-based compensation | 4,419 | 6,810 | 3,517 |
Deferred income taxes | 13 | (1,796) | 3 |
Changes in: | |||
Other assets | 6,459 | (823) | (190) |
Accrued interest payable and other liabilities | (140) | 286 | 225 |
Equity in undistributed net income of subsidiaries | (57,911) | (88,130) | (58,346) |
Net cash provided by operating activities | 110,922 | 61,187 | 66,498 |
Investing activities | |||
Business acquisitions, net of cash acquired | 0 | 0 | (30,832) |
Net cash used in investing activities | 0 | 0 | (30,832) |
Financing activities | |||
Redemption of subordinated debentures | 0 | (3,625) | 0 |
Common stock repurchased | 0 | (5,605) | 0 |
Dividends paid | (53,002) | (43,474) | (31,419) |
Net cash provided by financing activities | (53,002) | (52,704) | (31,419) |
Net (decrease) increase in cash and cash equivalents | 57,920 | 8,483 | 4,247 |
Cash and cash equivalents, beginning of period | 15,004 | 6,521 | 2,274 |
Cash and cash equivalents, end of period | $ 72,924 | $ 15,004 | $ 6,521 |