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Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Loans and Allowance for Credit Losses LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans Held for Sale
The following table presents loans held for sale:
(Dollars in thousands)March 31, 2022December 31, 2021
1-4 family residential$597 $712 
Commercial10 6,618 
Total loans held for sale$607 $7,330 
Loans held for sale exclude loans transferred to assets held for sale as part of a disposal group. For further information regarding loans transferred to assets held for sale as part of a disposal group, see Note 2 — Acquisitions and Divestitures.
Loans Held for Investment
Loans
The following table presents the amortized cost and unpaid principal balance of loans held for investment:
March 31, 2022December 31, 2021
(Dollars in thousands)Amortized
Cost		Unpaid
Principal		DifferenceAmortized
Cost		Unpaid
Principal		Difference
Commercial real estate$625,763 $627,657 $(1,894)$632,775 $634,319 $(1,544)
Construction, land development, land119,560 119,628 (68)123,464 123,643 (179)
1-4 family residential117,534 117,873 (339)123,115 123,443 (328)
Farmland17,910 18,102 (192)77,394 77,905 (511)
Commercial1,375,044 1,383,979 (8,935)1,430,429 1,440,542 (10,113)
Factored receivables1,764,590 1,769,774 (5,184)1,699,537 1,703,936 (4,399)
Consumer9,276 9,284 (8)10,885 10,883 2 
Mortgage warehouse694,401 694,401 — 769,973 769,973 — 
Total loans held for investment4,724,078 $4,740,698 $(16,620)4,867,572 $4,884,644 $(17,072)
Allowance for credit losses(41,553)(42,213)
$4,682,525 $4,825,359 
The difference between the amortized cost and the unpaid principal is primarily (1) premiums and discounts associated with acquired loans totaling $11,143,000 and $11,723,000 at March 31, 2022 and December 31, 2021, respectively, and (2) net deferred origination and factoring fees totaling $5,477,000 and $5,349,000 at March 31, 2022 and December 31, 2021, respectively.
Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $12,056,000 and $14,513,000 at March 31, 2022 and December 31, 2021, respectively, and was included in other assets in the consolidated balance sheets.
At March 31, 2022 and December 31, 2021, the Company had $231,506,000 and $254,970,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets.
At March 31, 2022 and December 31, 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $9,646,000 and $10,077,000, respectively. These balances were fully reserved as of those respective dates.
At March 31, 2022 the Company carried a separate $19,361,000 receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest Over-Formula Advance Portfolio carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We have commenced litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2022.
Loans with carrying amounts of $1,578,984,000 and $1,733,917,000 at March 31, 2022 and December 31, 2021, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity, Paycheck Protection Program Liquidity Facility borrowings and Federal Reserve Bank discount window borrowing capacity.
Loans transferred from loans held for investment to loans held for sale at fair value concurrently with management’s change in intent and decision to sell the loans, proceeds from sales of loans transferred to held for sale, and net gains and losses on transfers and sales of loans were as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
Loans transferred from held for investment to loans held for sale$1,932 $27,407 
Proceeds from sales of loans transferred to loans held for sale7,444 20,406 
Net gains and (losses) on transfers and sales of loans held for sale(144)1,053 
Net gains and losses on transfers and sales of loans are recorded as other noninterest income in the consolidated statements of income.
Loans transferred from loans held for investment to loans held for sale above exclude loans transferred to assets held for sale as part of a disposal group. For further information regarding loans transferred to assets held for sale as part of a disposal group, see Note 2 — Acquisitions and Divestitures.
Allowance for Credit Losses
The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesEnding
Balance
Three months ended March 31, 2022
Commercial real estate$3,961 $(340)$(108)$14 $3,527 
Construction, land development, land827 73 — 1 901 
1-4 family residential468 (21)— 3 450 
Farmland562 (441)— — 121 
Commercial14,485 (607)(724)61 13,215 
Factored receivables20,915 2,235 (708)29 22,471 
Consumer226 41 (111)19 175 
Mortgage warehouse769 (76)— — 693 
$42,213 $864 $(1,651)$127 $41,553 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesEnding
Balance
Three months ended March 31, 2021
Commercial real estate$10,182 $(3,364)$— $5 $6,823 
Construction, land development, land3,418 (1,737)(12)1 1,670 
1-4 family residential1,225 (678)— 84 631 
Farmland832 (133)— — 699 
Commercial22,040 (5,071)(273)462 17,158 
Factored receivables56,463 4,718 (41,503)38 19,716 
Consumer542 (193)(79)26 296 
Mortgage warehouse1,037 (6)— — 1,031 
$95,739 $(6,464)$(41,867)$616 $48,024 
The decrease in required ACL during the three months ended March 31, 2022 is a function of net charge-offs of $1.5 million and credit loss expense of $0.9 million.
The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and PPP), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments.
For all DCF models at March 31, 2022, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At March 31, 2022, as compared to December 31, 2021, the Company forecasted a decrease in national unemployment, an increase in one-year percentage change in national retail sales, a decrease in one-year percentage change in the national home price index, and a decrease in one-year percentage change in national gross domestic product.. At March 31, 2022, for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected sustained levels in the first two projected quarters followed by a decline over the last two projected quarters to a level below recent actual periods. For percentage changes in national home price index and national gross domestic product, the Company projected declines over the last three projected quarters to levels below recent actual periods.
The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above.
For the three months ended March 31, 2022, changes in projected loss drivers and assumptions over the reasonable and supportable forecast period decreased the required ACL by $1,017,000. Changes in the volume and mix of the loan portfolio also decreased the required ACL at March 31, 2022. These decreases were offset by an increase in net new required specific reserves and net charge-off activity during the three months ended March 31, 2022.
The decrease in required ACL during the three months ended March 31, 2021 is a function of net charge-offs of $41,251,000 and a benefit to credit loss expense of $6,464,000. Included in net charge-offs for the period was a charge-off of $41,265,000 due from the largest acquired Over-Formula Advance client which had been fully reserved in a prior period. As of March 31, 2022, the entire remaining acquired PCD Over-Formula Advance balance was fully reserved. See Note 2 – Acquisitions and Divestitures for further discussion of Over-Formula Advance activity.
The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
March 31, 2022
Commercial real estate$2,161 $— $— $153 $2,314 $283 
Construction, land development, land175 — — — 175 — 
1-4 family residential1,510 — — 114 1,624 39 
Farmland1,218 — 121 116 1,455 — 
Commercial227 — 4,481 2,655 7,363 1,472 
Factored receivables— 53,072 — — 53,072 13,724 
Consumer— — — 219 219 21 
Mortgage warehouse— — — — — — 
Total$5,291 $53,072 $4,602 $3,257 $66,222 $15,539 
At March 31, 2022 the balance of the Over-Formula Advance Portfolio included in factored receivables was $9,646,000 and was fully reserved. At March 31, 2022 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation.
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
December 31, 2021
Commercial real estate$2,143 $— $— $155 $2,298 $283 
Construction, land development, land987 — — — 987 — 
1-4 family residential1,583 — — 116 1,699 39 
Farmland1,803 — 126 116 2,045 — 
Commercial254 — 5,598 3,017 8,869 1,733 
Factored receivables— 42,863 — — 42,863 12,640 
Consumer— — — 240 240 21 
Mortgage warehouse— — — — — — 
Total$6,770 $42,863 $5,724 $3,644 $59,001 $14,716 
At December 31, 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $10,077,000 and carried an ACL allocation of $10,077,000. At December 31, 2021 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation.
Past Due and Nonaccrual Loans
The following tables present an aging of contractually past due loans:
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total
Past Due		CurrentTotalPast Due 90
Days or More
and Accruing
March 31, 2022
Commercial real estate$— $— $16 $16 $625,747 $625,763 $— 
Construction, land development, land7 — 168 175 119,385 119,560 — 
1-4 family residential1,192 176 1,002 2,370 115,164 117,534 — 
Farmland— — 779 779 17,131 17,910 — 
Commercial923 969 5,237 7,129 1,367,915 1,375,044 — 
Factored receivables50,389 20,082 47,719 118,190 1,646,400 1,764,590 47,719 
Consumer176 21 109 306 8,970 9,276 — 
Mortgage warehouse— — — — 694,401 694,401 — 
Total$52,687 $21,248 $55,030 $128,965 $4,595,113 $4,724,078 $47,719 
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total
Past Due		CurrentTotalPast Due 90
Days or More
and Accruing
December 31, 2021
Commercial real estate$1,021 $— $16 $1,037 $631,738 $632,775 $— 
Construction, land development, land30 — 145 175 123,289 123,464 — 
1-4 family residential730 332 1,114 2,176 120,939 123,115 134 
Farmland378 154 977 1,509 75,885 77,394 — 
Commercial996 346 4,948 6,290 1,424,139 1,430,429 — 
Factored receivables70,109 18,302 39,134 127,545 1,571,992 1,699,537 39,134 
Consumer255 48 99 402 10,483 10,885 — 
Mortgage warehouse— — — — 769,973 769,973 — 
Total$73,519 $19,182 $46,433 $139,134 $4,728,438 $4,867,572 $39,268 
At March 31, 2022 and December 31, 2021, total past due Over-Formula Advances recorded in factored receivables was $9,646,000 and $10,077,000, respectively, all of which was considered past due 90 days or more. Aging of the Over-Formula Advances is based upon the service month on which the advances were made by TFS prior to acquisition. At March 31, 2022 and December 31, 2021, the Misdirected Payments totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets at March 31, 2022. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material.
The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
March 31, 2022December 31, 2021
(Dollars in thousands)NonaccrualNonaccrual
With No ACL		NonaccrualNonaccrual
With No ACL
Commercial real estate$2,039 $1,423 $2,025 $1,375 
Construction, land development, land175 175 964 964 
1-4 family residential1,609 1,503 1,683 1,582 
Farmland1,455 1,455 2,044 2,044 
Commercial6,675 2,815 8,078 3,910 
Factored receivables— — — — 
Consumer219 139 240 159 
Mortgage warehouse— — — — 
$12,172 $7,510 $15,034 $10,034 
The following table presents accrued interest on nonaccrual loans reversed through interest income:
Three Months Ended March 31,
(Dollars in thousands)20222021
Commercial real estate$— $— 
Construction, land development, land— — 
1-4 family residential— 1 
Farmland— 6 
Commercial4 3 
Factored receivables— — 
Consumer— — 
Mortgage warehouse— — 
$4 $10 
There was no interest earned on nonaccrual loans during the three months ended March 31, 2022 and 2021.
The following table presents information regarding nonperforming loans:
(Dollars in thousands)March 31, 2022December 31, 2021
Nonaccrual loans(1)
$12,172 $15,034 
Factored receivables greater than 90 days past due30,309 29,057 
Other nonperforming factored receivables(2)
1,213 1,428 
Troubled debt restructurings accruing interest689 765 
$44,383 $46,284 
(1)Includes troubled debt restructurings of $3,245,000 and $3,912,000 at March 31, 2022 and December 31, 2021, respectively.
(2)Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification. This amount is also considered Classified from a risk rating perspective.
Credit Quality Information
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings:
Pass – Pass rated loans have low to average risk and are not otherwise classified.
Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. As of March 31, 2022 and December 31, 2021, based on the most recent analysis performed, the risk category of loans is as follows:
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
March 31, 202220222021202020192018Prior
Commercial real estate
Pass$87,684 $193,924 $216,244 $47,620 $20,786 $48,701 $4,253 $— $619,212 
Classified— 3,637 2,602 40 — 16 256 — 6,551 
Total commercial real estate$87,684 $197,561 $218,846 $47,660 $20,786 $48,717 $4,509 $— $625,763 
Construction, land development, land
Pass$7,412 $48,081 $33,997 $4,617 $23,327 $602 $9 $— $118,045 
Classified— 1,362 8 — — 145 — — 1,515 
Total construction, land development, land$7,412 $49,443 $34,005 $4,617 $23,327 $747 $9 $— $119,560 
1-4 family residential
Pass$11,019 $23,059 $13,562 $9,007 $5,162 $23,060 $30,667 $322 $115,858 
Classified— 261 178 53 5 1,099 80 — 1,676 
Total 1-4 family residential$11,019 $23,320 $13,740 $9,060 $5,167 $24,159 $30,747 $322 $117,534 
Farmland
Pass$177 $2,897 $2,809 $2,663 $2,317 $4,094 $1,016 $237 $16,210 
Classified— 199 504 602 — 395 — — 1,700 
Total farmland$177 $3,096 $3,313 $3,265 $2,317 $4,489 $1,016 $237 $17,910 
Commercial
Pass$109,751 $387,247 $293,748 $70,976 $14,458 $10,748 $465,709 $178 $1,352,815 
Classified1,329 13,759 5,573 420 548 201 399 — 22,229 
Total commercial$111,080 $401,006 $299,321 $71,396 $15,006 $10,949 $466,108 $178 $1,375,044 
Factored receivables
Pass$1,732,472 $— $— $— $— $— $— $— $1,732,472 
Classified11,543 — 20,575 — — — — — 32,118 
Total factored receivables$1,744,015 $— $20,575 $— $— $— $— $— $1,764,590 
Consumer
Pass$1,374 $1,820 $1,354 $422 $447 $3,587 $53 $— $9,057 
Classified— 3 — — — 216 — — 219 
Total consumer$1,374 $1,823 $1,354 $422 $447 $3,803 $53 $— $9,276 
Mortgage warehouse
Pass$694,401 $— $— $— $— $— $— $— $694,401 
Classified— — — — — — — — — 
Total mortgage warehouse$694,401 $— $— $— $— $— $— $— $694,401 
Total loans
Pass$2,644,290 $657,028 $561,714 $135,305 $66,497 $90,792 $501,707 $737 $4,658,070 
Classified12,872 19,221 29,440 1,115 553 2,072 735 — 66,008 
Total loans$2,657,162 $676,249 $591,154 $136,420 $67,050 $92,864 $502,442 $737 $4,724,078 
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
December 31, 202120212020201920182017Prior
Commercial real estate
Pass$211,088 $249,652 $50,223 $25,930 $47,447 $37,290 $4,595 $— $626,225 
Classified2,879 3,358 41 — 16 — 256 — 6,550 
Total commercial real estate$213,967 $253,010 $50,264 $25,930 $47,463 $37,290 $4,851 $— $632,775 
Construction, land development, land
Pass$56,764 $33,756 $4,744 $23,696 $1,199 $994 $8 $— $121,161 
Classified2,150 8 — — — 145 — — 2,303 
Total construction, land development, land$58,914 $33,764 $4,744 $23,696 $1,199 $1,139 $8 $— $123,464 
1-4 family residential
Pass$26,840 $15,195 $9,485 $6,526 $8,591 $22,151 $32,210 $318 $121,316 
Classified273 233 53 6 64 1,089 81 — 1,799 
Total 1-4 family residential$27,113 $15,428 $9,538 $6,532 $8,655 $23,240 $32,291 $318 $123,115 
Farmland
Pass$14,387 $13,396 $7,892 $8,040 $10,040 $19,792 $1,317 $241 $75,105 
Classified199 612 593 333 128 298 126 — 2,289 
Total farmland$14,586 $14,008 $8,485 $8,373 $10,168 $20,090 $1,443 $241 $77,394 
Commercial
Pass$466,254 $332,746 $77,010 $18,940 $15,032 $7,704 $490,159 $49 $1,407,894 
Classified9,317 6,858 5,088 558 56 456 202 — 22,535 
Total commercial$475,571 $339,604 $82,098 $19,498 $15,088 $8,160 $490,361 $49 $1,430,429 
Factored receivables
Pass$1,667,922 $— $— $— $— $— $— $— $1,667,922 
Classified10,826 20,789 — — — — — — 31,615 
Total factored receivables$1,678,748 $20,789 $— $— $— $— $— $— $1,699,537 
Consumer
Pass$3,252 $1,794 $669 $553 $2,424 $1,882 $70 $— $10,644 
Classified5 — — 12 119 105 — — 241 
Total consumer$3,257 $1,794 $669 $565 $2,543 $1,987 $70 $— $10,885 
Mortgage warehouse
Pass$769,973 $— $— $— $— $— $— $— $769,973 
Classified— — — — — — — — — 
Total mortgage warehouse$769,973 $— $— $— $— $— $— $— $769,973 
Total loans
Pass$3,216,480 $646,539 $150,023 $83,685 $84,733 $89,813 $528,359 $608 $4,800,240 
Classified25,649 31,858 5,775 909 383 2,093 665 — 67,332 
Total loans$3,242,129 $678,397 $155,798 $84,594 $85,116 $91,906 $529,024 $608 $4,867,572 
Troubled Debt Restructurings and Loan Modifications
The Company had troubled debt restructurings with an amortized cost of $3,934,000 and $4,677,000 as of March 31, 2022 and December 31, 2021, respectively. The Company had allocated $924,000 and $1,068,000 of allowance for those loans at March 31, 2022 and December 31, 2021, respectively, and had not committed to lend additional amounts.
The Company did not have any loans modified as troubled debt restructurings during the three months ended March 31, 2022. The following table presents the pre- and post-modification recorded investment of loans modified as troubled debt restructurings during the three months ended March 31, 2021. The Company did not grant principal reductions on any restructured loans.
(Dollars in thousands)Extended
Amortization
Period		Payment
Deferrals		Protective AdvancesTotal
Modifications		Number of
Loans
Three months ended March 31, 2021
Commercial real estate$— $— $741 $741 1 
Commercial— 
$— $— $741 $741 1 
During the three months ended March 31, 2022, the Company did not have any loans modified as troubled debt restructurings for which there were payment defaults within twelve months following the modification. During the three months ended March 31, 2021, the Company had two loans modified as troubled debt restructurings with a recorded investment of $5,841,000 for which there were payment defaults within twelve months following the modification. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure.
The following table summarizes the balance of loans modified for borrowers impacted by the COVID-19 pandemic.
Three Months Ended March 31,
(Dollars in thousands)20222021
Total modifications— 10,459
These modifications primarily consisted of payment deferrals to assist customers. As these modifications related to the COVID-19 pandemic and qualify under the provisions of either Section 4013 of the CARES act or Interagency Guidance, they are not considered troubled debt restructurings. The following table summarized the amortized cost of loans with payments currently in deferral and the accrued interest related to the loans with payments in deferral at March 31, 2022 and December 31, 2021:
(Dollars in thousands)Total
Loans		Balance of
Loans Currently
in Deferral		Percentage
of Portfolio		Accrued
Interest
Receivable
March 31, 2022
Commercial real estate$625,763 $— — %$— 
Construction, land development, land119,560 1,340 1.1 %5 
1-4 family residential117,534 — — %— 
Farmland17,910 — — %— 
Commercial1,375,044 — — %— 
Factored receivables1,764,590 — — %— 
Consumer9,276 — — %— 
Mortgage warehouse694,401 — — %— 
Total$4,724,078 $1,340 — %$5 
(Dollars in thousands)Total
Loans		Balance of
Loans Currently
in Deferral		Percentage
of Portfolio		Accrued
Interest
Receivable
December 31, 2021
Commercial real estate$632,775 $30,212 4.8 %$116 
Construction, land development, land123,464 1,340 1.1 %5 
1-4 family residential123,115 — — %— 
Farmland77,394 338 0.4 %3 
Commercial1,430,429 — — %— 
Factored receivables1,699,537 — — %— 
Consumer10,885 6 0.1 %— 
Mortgage warehouse769,973 — — %— 
Total$4,867,572 $31,896 0.7 %$124 
Residential Real Estate Loans In Process of Foreclosure
At March 31, 2022 and December 31, 2021, the Company had $301,000 and $301,000, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process.