Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI (Tables)

9 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loan Portfolio Held for Investment

At September 30, 2021 and December 31, 2020, LHFI consisted of the following ($ in thousands):

	September 30, 2021		December 31, 2020
Loans secured by real estate:
Construction, land development and other land	$	559,804	$	514,056
Other secured by 1-4 family residential properties		509,195		524,732
Secured by nonfarm, nonresidential properties		2,924,953		2,709,026
Other real estate secured		986,163		1,065,964
Other loans secured by real estate:
Other construction		726,809		794,983
Secured by 1-4 family residential properties		1,382,097		1,216,400
Commercial and industrial loans		1,327,211		1,309,078
Consumer loans		160,802		164,386
State and other political subdivision loans		1,125,186		1,000,776
Other commercial loans		472,679		525,123
LHFI		10,174,899		9,824,524
Less ACL		104,073		117,306
Net LHFI	$	10,070,826	$	9,707,218

Schedule of Amortized Cost Basis of Loans on Nonaccrual Status

The following tables provide the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more still accruing interest at September 30, 2021 and December 31, 2020 ($ in thousands):

	September 30, 2021
	Nonaccrual With No ACL		Total Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Loans secured by real estate:
Construction, land development and other land	$	4,911	$	5,629	$	—
Other secured by 1-4 family residential properties		1,355		3,204		154
Secured by nonfarm, nonresidential properties		11,319		13,077		—
Other real estate secured		56		175		—
Other loans secured by real estate:
Other construction		—		—		—
Secured by 1-4 family residential properties		—		12,562		198
Commercial and industrial loans		1,026		22,218		—
Consumer loans		—		60		273
State and other political subdivision loans		—		3,786		—
Other commercial loans		—		5,529		—
Total	$	18,667	$	66,240	$	625

	December 31, 2020
	Nonaccrual With No ACL		Total Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Loans secured by real estate:
Construction, land development and other land	$	5,756	$	5,985	$	—
Other secured by 1-4 family residential properties		1,895		4,487		79
Secured by nonfarm, nonresidential properties		12,037		15,197		—
Other real estate secured		60		185		—
Other loans secured by real estate:
Other construction		—		—		—
Secured by 1-4 family residential properties		—		11,807		1,257
Commercial and industrial loans		12,665		15,618		—
Consumer loans		—		86		240
State and other political subdivision loans		—		3,970		—
Other commercial loans		—		5,793		—
Total	$	32,413	$	63,128	$	1,576

Aging Analysis of Past Due LHFI by Loan Type

The following tables provide an aging analysis of the amortized cost basis of past due LHFI at September 30, 2021 and December 31, 2020 ($ in thousands):

	September 30, 2021
	Past Due
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and    other land	$	1,045	$	155	$	4,847	$	6,047	$	553,757	$	559,804
Other secured by 1-4 family residential    properties		1,965		463		381		2,809		506,386		509,195
Secured by nonfarm, nonresidential    properties		124		—		1,564		1,688		2,923,265		2,924,953
Other real estate secured		87		—		107		194		985,969		986,163
Other loans secured by real estate:
Other construction		—		—		—		—		726,809		726,809
Secured by 1-4 family residential properties		2,624		612		5,927		9,163		1,372,934		1,382,097
Commercial and industrial loans		1,141		72		3,426		4,639		1,322,572		1,327,211
Consumer loans		1,172		215		273		1,660		159,142		160,802
State and other political subdivision loans		19		—		177		196		1,124,990		1,125,186
Other commercial loans		95		25		5,091		5,211		467,468		472,679
Total	$	8,272	$	1,542	$	21,793	$	31,607	$	10,143,292	$	10,174,899

	December 31, 2020
	Past Due
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and    other land	$	339	$	34	$	161	$	534	$	513,522	$	514,056
Other secured by 1-4 family residential    properties		1,505		523		896		2,924		521,808		524,732
Secured by nonfarm, nonresidential    properties		920		—		972		1,892		2,707,134		2,709,026
Other real estate secured		103		101		107		311		1,065,653		1,065,964
Other loans secured by real estate:
Other construction		—		—		—		—		794,983		794,983
Secured by 1-4 family residential properties		3,291		1,289		5,110		9,690		1,206,710		1,216,400
Commercial and industrial loans		271		196		1,543		2,010		1,307,068		1,309,078
Consumer loans		926		190		240		1,356		163,030		164,386
State and other political subdivision loans		117		—		177		294		1,000,482		1,000,776
Other commercial loans		2,143		2,971		346		5,460		519,663		525,123
Total	$	9,615	$	5,304	$	9,552	$	24,471	$	9,800,053	$	9,824,524

Impact of Modifications Classified as Troubled Debt Restructurings

The following table illustrates the impact of modifications classified as TDRs for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2021						2020
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Other secured by 1-4 family    residential properties		—	$	—	$	—		3	$	87	$	89
Secured by nonfarm,    nonresidential properties		3		483		483		—		—		—
Other loans secured by real estate:
Secured by 1-4 family residential    properties		1		152		152		—		—		—
Commercial and industrial loans		—		—		—		1		48		47
Total		4	$	635	$	635		4	$	135	$	136

	Nine Months Ended September 30,
	2021						2020
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Construction, land development    and other land		5	$	5,582	$	5,582		—	$	—	$	—
Other secured by 1-4 family    residential properties		3		37		37		11		794		800
Secured by nonfarm,    nonresidential properties		4		860		860		1		139		139
Other loans secured by real estate:
Secured by 1-4 family residential    properties		4		401		401		—		—		—
Commercial and industrial loans		2		1,014		1,014		3		1,630		1,629
Consumer loans		—		—		—		6		26		26
State and other political subdivision    loans		—		—		—		2		3,902		3,872
Other commercial loans		2		4,929		4,929		—		—		—
Total		20	$	12,823	$	12,823		23	$	6,491	$	6,466

Troubled Debt Restructuring Subsequently Defaulted

The table below includes the balances at default for TDRs modified within the last 12 months for which there was a payment default during the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2021				2020
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by real estate:
Construction, land development and other land		5	$	5,582		—	$	—
Other secured by 1-4 family residential properties		1		16		4		484
Secured by nonfarm, nonresidential properties		—		—		1		139
Other loans secured by real estate:
Secured by 1-4 family residential properties		1		78		—		—
Commercial and industrial loans		—		—		1		82
Other commercial loans		2		4,929		—		—
Total		9	$	10,605		6	$	705

Troubled Debt Restructuring Related to Loans Held for Investment by Loan Type

The following tables detail LHFI classified as TDRs by loan class at September 30, 2021 and 2020 ($ in thousands):

	September 30, 2021
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	4,607	$	4,607
Other secured by 1-4 family residential properties		—		1,007		1,007
Secured by nonfarm, nonresidential properties		394		2,961		3,355
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		2,292		2,292
Commercial and industrial loans		2,000		1,600		3,600
Consumer loans		—		11		11
State and other political subdivision loans		—		3,609		3,609
Other commercial loans		—		5,009		5,009
Total TDRs	$	2,394	$	21,096	$	23,490

	September 30, 2020
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	13	$	13
Other secured by 1-4 family residential properties		18		3,689		3,707
Secured by nonfarm, nonresidential properties		—		2,970		2,970
Commercial and industrial loans		1,500		13,198		14,698
Consumer loans		16		19		35
State and other political subdivision loans		—		3,842		3,842
Other commercial loans		—		125		125
Total TDRs	$	1,534	$	23,856	$	25,390

Schedule Of Amortized Cost Basis Of Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of September 30, 2021 and December 31, 2020 ($ in thousands):

	September 30, 2021
	Real Estate		Equipment and  Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	4,911	$	—	$	—	$	—	$	—	$	4,911
Secured by nonfarm, nonresidential    properties		11,549		—		—		—		—		11,549
Other real estate secured		56		—		—		—		—		56
Other loans secured by real estate:
Secured by 1-4 family residential    properties		1,355		—		—		—		—		1,355
Commercial and industrial loans		42		63		4,219		63		16,671		21,058
State and other political subdivision loans		3,786		—		—		—		—		3,786
Other commercial loans		325		—		1,958		—		3,052		5,335
Total	$	22,024	$	63	$	6,177	$	63	$	19,723	$	48,050

	December 31, 2020
	Real Estate		Equipment and  Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	5,756	$	—	$	—	$	—	$	—	$	5,756
Other secured by 1-4 family    residential properties		454		—		—		—		—		454
Secured by nonfarm, nonresidential    properties		12,037		—		—		—		—		12,037
Other real estate secured		60		—		—		—		—		60
Other loans secured by real estate:
Secured by 1-4 family residential    properties		1,441		—		—		—		—		1,441
Commercial and industrial loans		86		425		4,899		135		8,531		14,076
State and other political subdivision loans		3,970		—		—		—		—		3,970
Other commercial loans		606		—		1,958		—		3,051		5,615
Total	$	24,410	$	425	$	6,857	$	135	$	11,582	$	43,409

Carrying Amount of Loans by Credit Quality Indicator

The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on analyses performed at September 30, 2021 and December 31, 2020 ($ in thousands):

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of September 30, 2021	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	283,032	$	116,423	$	29,505	$	17,454	$	1,721	$	3,345	$	20,890	$	472,370
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		1,948		—		3,461		43		4		—		—		5,456
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		284,980		116,423		32,966		17,497		1,725		3,387		20,890		477,868
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	33,343	$	25,263	$	14,164	$	10,894	$	6,535	$	4,208	$	7,049	$	101,456
Special Mention - RR 7		83		176		—		—		—		—		—		259
Substandard - RR 8		591		315		7		173		151		642		—		1,879
Doubtful - RR 9		24		—		—		—		—		—		—		24
Total		34,041		25,754		14,171		11,067		6,686		4,850		7,049		103,618
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	530,254	$	655,169	$	609,318	$	383,231	$	214,750	$	311,903	$	105,190	$	2,809,815
Special Mention - RR 7		325		9,655		416		596		1,602		4,839		—		17,433
Substandard - RR 8		9,034		2,390		24,568		3,747		1,957		54,258		1,535		97,489
Doubtful - RR 9		45		—		114		—		—		22		—		181
Total		539,658		667,214		634,416		387,574		218,309		371,022		106,725		2,924,918
Other real estate secured:
Pass - RR 1 through RR 6	$	192,093	$	155,079	$	385,085	$	154,131	$	19,297	$	62,354	$	12,947	$	980,986
Special Mention - RR 7		—		—		—		—		—		791		—		791
Substandard - RR 8		3,212		690		—		12		—		122		—		4,036
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		195,305		155,769		385,085		154,143		19,297		63,267		12,947		985,813

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of September 30, 2021	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	223,507	$	371,269	$	103,566	$	12,837	$	—	$	—	$	14,217	$	725,396
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		1,413		—		—		—		—		—		—		1,413
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		224,920		371,269		103,566		12,837		—		—		14,217		726,809
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	369,588	$	289,157	$	82,992	$	39,484	$	59,199	$	43,148	$	379,014	$	1,262,582
Special Mention - RR 7		730		385		180		601		62		—		109		2,067
Substandard - RR 8		12,394		2,528		18,486		1,289		3,469		2,992		21,200		62,358
Doubtful - RR 9		—		37		35		109		—		23		—		204
Total		382,712		292,107		101,693		41,483		62,730		46,163		400,323		1,327,211
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	283,286	$	154,957	$	84,901	$	35,182	$	97,614	$	450,583	$	11,527	$	1,118,050
Special Mention - RR 7		—		—		—		—		—		3,350		—		3,350
Substandard - RR 8		—		—		—		—		—		3,786		—		3,786
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		283,286		154,957		84,901		35,182		97,614		457,719		11,527		1,125,186
Other commercial loans:
Pass - RR 1 through RR 6	$	67,431	$	42,992	$	65,384	$	9,646	$	8,308	$	43,696	$	197,403	$	434,860
Special Mention - RR 7		4,167		—		—		—		—		—		9,013		13,180
Substandard - RR 8		70		7,098		2,096		371		—		127		14,804		24,566
Doubtful - RR 9		—		50		—		—		—		23		—		73
Total		71,668		50,140		67,480		10,017		8,308		43,846		221,220		472,679
Total commercial    LHFI	$	2,016,570	$	1,833,633	$	1,424,278	$	669,800	$	414,669	$	990,254	$	794,898	$	8,144,102

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of September 30, 2021	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	37,059	$	29,173	$	7,958	$	3,212	$	897	$	2,701	$	—	$	81,000
Past due 30-89 days		—		703		—		32		—		11		—		746
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		190		—		190
Total		37,059		29,876		7,958		3,244		897		2,902		—		81,936
Other secured by 1-4 family    residential properties:
Current	$	21,308	$	12,368	$	6,727	$	6,913	$	3,388	$	8,768	$	341,019	$	400,491
Past due 30-89 days		32		8		193		7		66		371		1,531		2,208
Past due 90 days or more		—		—		—		—		—		123		31		154
Nonaccrual		12		56		13		10		347		372		1,914		2,724
Total		21,352		12,432		6,933		6,930		3,801		9,634		344,495		405,577
Secured by nonfarm,    nonresidential properties:
Current	$	33	$	—	$	—	$	—	$	2	$	—	$	—	$	35
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		33		—		—		—		2		—		—		35
Other real estate secured:
Current	$	—	$	100	$	—	$	8	$	33	$	209	$	—	$	350
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		100		—		8		33		209		—		350

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of September 30, 2021	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	475,651	$	243,852	$	147,846	$	117,312	$	64,973	$	317,231	$	—	$	1,366,865
Past due 30-89 days		316		600		330		351		164		711		—		2,472
Past due 90 days or more		5		—		—		11		—		182		—		198
Nonaccrual		174		1,123		1,272		2,529		647		6,817		—		12,562
Total		476,146		245,575		149,448		120,203		65,784		324,941		—		1,382,097
Consumer loans:
Current	$	53,613	$	33,221	$	11,432	$	6,256	$	1,677	$	653	$	52,231	$	159,083
Past due 30-89 days		412		231		91		26		26		—		600		1,386
Past due 90 days or more		36		33		3		9		—		—		192		273
Nonaccrual		11		14		2		17		9		—		7		60
Total		54,072		33,499		11,528		6,308		1,712		653		53,030		160,802
Total consumer LHFI	$	588,662	$	321,482	$	175,867	$	136,693	$	72,229	$	338,339	$	397,525	$	2,030,797
Total LHFI	$	2,605,232	$	2,155,115	$	1,600,145	$	806,493	$	486,898	$	1,328,593	$	1,192,423	$	10,174,899

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2020	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	287,218	$	62,078	$	26,401	$	4,487	$	3,274	$	3,564	$	28,548	$	415,570
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		5,419		4,363		1,226		12		494		22		101		11,637
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		292,637		66,441		27,627		4,499		3,768		3,628		28,649		427,249
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	35,139	$	19,596	$	15,399	$	9,605	$	10,273	$	4,786	$	8,486	$	103,284
Special Mention - RR 7		255		—		50		—		—		—		—		305
Substandard - RR 8		1,155		8		914		341		302		337		3,950		7,007
Doubtful - RR 9		29		—		—		—		—		—		—		29
Total		36,578		19,604		16,363		9,946		10,575		5,123		12,436		110,625
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	697,439	$	496,476	$	442,264	$	293,072	$	254,747	$	251,219	$	96,098	$	2,531,315
Special Mention - RR 7		13,452		6,139		2,956		4,466		4,957		20,545		—		52,515
Substandard - RR 8		19,119		20,572		4,516		12,956		38,956		25,438		2,779		124,336
Doubtful - RR 9		52		163		—		—		217		306		—		738
Total		730,062		523,350		449,736		310,494		298,877		297,508		98,877		2,708,904
Other real estate secured:
Pass - RR 1 through RR 6	$	146,803	$	376,765	$	347,472	$	48,626	$	89,824	$	23,680	$	12,116	$	1,045,286
Special Mention - RR 7		—		—		—		—		—		841		—		841
Substandard - RR 8		18,649		14		18		—		556		122		—		19,359
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		165,452		376,779		347,490		48,626		90,380		24,643		12,116		1,065,486

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2020	Commercial LHFI
Other loans secured by real    estate:
Other construction
Pass - RR 1 through RR 6	$	262,544	$	425,936	$	81,476	$	14,074	$	2,464	$	—	$	7,735	$	794,229
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		754		—		—		—		—		—		—		754
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		263,298		425,936		81,476		14,074		2,464		—		7,735		794,983
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	444,304	$	165,163	$	77,611	$	77,985	$	59,131	$	43,214	$	372,486	$	1,239,894
Special Mention - RR 7		677		45		—		—		—		—		240		962
Substandard - RR 8		12,090		1,814		9,737		3,735		2,160		5,024		33,380		67,940
Doubtful - RR 9		151		95		—		—		32		4		—		282
Total		457,222		167,117		87,348		81,720		61,323		48,242		406,106		1,309,078
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	250,363	$	79,595	$	41,334	$	113,817	$	132,634	$	372,831	$	1,446	$	992,020
Special Mention - RR 7		—		—		—		—		—		4,018		—		4,018
Substandard - RR 8		—		—		—		247		—		4,491		—		4,738
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		250,363		79,595		41,334		114,064		132,634		381,340		1,446		1,000,776
Other commercial loans:
Pass - RR 1 through RR 6	$	101,230	$	70,990	$	20,769	$	9,723	$	33,481	$	30,715	$	225,533	$	492,441
Special Mention - RR 7		7,500		—		—		—		—		—		11,333		18,833
Substandard - RR 8		381		2,099		683		6		707		—		9,948		13,824
Doubtful - RR 9		2		—		—		—		—		23		—		25
Total		109,113		73,089		21,452		9,729		34,188		30,738		246,814		525,123
Total commercial    LHFI	$	2,304,725	$	1,731,911	$	1,072,826	$	593,152	$	634,209	$	791,222	$	814,179	$	7,942,224

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2020	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	47,336	$	24,174	$	8,496	$	2,036	$	1,447	$	2,868	$	—	$	86,357
Past due 30-89 days		—		318		20		—		1		12		—		351
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		99		—		99
Total		47,336		24,492		8,516		2,036		1,448		2,979		—		86,807
Other secured by 1-4 family    residential properties:
Current	$	20,864	$	10,253	$	12,037	$	4,177	$	2,082	$	11,124	$	348,830	$	409,367
Past due 30-89 days		93		12		—		13		—		133		1,058		1,309
Past due 90 days or more		—		—		—		—		—		30		22		52
Nonaccrual		6		44		121		428		—		382		2,398		3,379
Total		20,963		10,309		12,158		4,618		2,082		11,669		352,308		414,107
Secured by nonfarm,    nonresidential properties:
Current	$	109	$	—	$	—	$	4	$	—	$	9	$	—	$	122
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		109		—		—		4		—		9		—		122
Other real estate secured:
Current	$	107	$	—	$	38	$	37	$	96	$	200	$	—	$	478
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		107		—		38		37		96		200		—		478
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	289,521	$	214,056	$	173,324	$	92,564	$	109,031	$	321,250	$	—	$	1,199,746
Past due 30-89 days		499		93		753		366		1,080		799		—		3,590
Past due 90 days or more		159		214		208		127		—		549		—		1,257
Nonaccrual		283		711		2,024		682		239		7,868		—		11,807
Total		290,462		215,074		176,309		93,739		110,350		330,466		—		1,216,400
Consumer loans:
Current	$	65,370	$	25,303	$	13,140	$	3,893	$	1,257	$	345	$	53,669	$	162,977
Past due 30-89 days		524		158		67		19		7		3		305		1,083
Past due 90 days or more		77		—		4		—		—		—		159		240
Nonaccrual		12		4		55		13		2		—		—		86
Total		65,983		25,465		13,266		3,925		1,266		348		54,133		164,386
Total consumer LHFI	$	424,960	$	275,340	$	210,287	$	104,359	$	115,242	$	345,671	$	406,441	$	1,882,300
Total LHFI	$	2,729,685	$	2,007,251	$	1,283,113	$	697,511	$	749,451	$	1,136,893	$	1,220,620	$	9,824,524

Summary of Trustmark's Portfolio Segments, Loan Classes, Loan Pools and the ACL Methodology and Loss Drivers

The following table provides a description of each of Trustmark’s portfolio segments, loan classes, loan pools and the ACL methodology and loss drivers:

Portfolio Segment	Loan Class	Loan Pool	Methodology	Loss Drivers
Loans secured by real estate	Construction, land    development and other land	1-4 family residential    construction	DCF	Prime Rate, National GDP
		Lots and development	DCF	Prime Rate, Southern Unemployment
		Unimproved land	DCF	Prime Rate, Southern Unemployment
		All other consumer	DCF	Southern Unemployment
	Other secured by 1-4    family residential    properties	Consumer 1-4 family - 1st liens	DCF	Prime Rate, Southern Unemployment
		All other consumer	DCF	Southern Unemployment
		Nonresidential owner-occupied	DCF	Southern Unemployment, National GDP
	Secured by nonfarm,    nonresidential properties	Nonowner-occupied -    hotel/motel	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonowner-occupied - office	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonowner-occupied- Retail	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonowner-occupied - senior    living/nursing homes	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonowner-occupied -    all other	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonresidential owner-occupied	DCF	Southern Unemployment, National GDP
	Other real estate secured	Nonresidential nonowner    -occupied - apartments	DCF	Southern Vacancy Rate, Southern Unemployment
		Nonresidential owner-occupied	DCF	Southern Unemployment, National GDP
		Nonowner-occupied -    all other	DCF	Southern Vacancy Rate, Southern Unemployment
Other loans secured by    real estate	Other construction	Other construction	WARM	Prime Rate, National Unemployment
	Secured by 1-4 family    residential properties	Trustmark mortgage	WARM	Southern Unemployment
Commercial and    industrial loans	Commercial and    industrial loans	Commercial and industrial -    non-working capital	DCF	Trustmark historical data
		Commercial and industrial -    working capital	DCF	Trustmark historical data
		Credit cards	WARM	Trustmark call report data
Consumer loans	Consumer loans	Credit cards	WARM	Trustmark call report data
		Overdrafts	Loss Rate	Trustmark historical data
		All other consumer	DCF	Southern Unemployment
State and other political    subdivision loans	State and other political    subdivision loans	Obligations of state and    political subdivisions	DCF	Moody's Bond Default Study
Other commercial loans	Other commercial loans	Other loans	DCF	Prime Rate, Southern Unemployment
		Commercial and industrial -    non-working capital	DCF	Trustmark historical data
		Commercial and industrial -    working capital	DCF	Trustmark historical data

Change in Allowance for Loan Losses

The following tables disaggregate the ACL and the amortized cost basis of the loans by the measurement methodology used at September 30, 2021 and December 31, 2020 ($ in thousands):

	September 30, 2021
	ACL						LHFI
	Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total		Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total
Loans secured by real estate:
Construction, land development and    other land	$	—	$	5,133	$	5,133	$	4,911		554,893	$	559,804
Other secured by 1-4 family residential    properties		—		10,223		10,223		—		509,195		509,195
Secured by nonfarm, nonresidential    properties		—		43,306		43,306		11,549		2,913,404		2,924,953
Other real estate secured		—		4,370		4,370		56		986,107		986,163
Other loans secured by real estate:
Other construction		—		5,945		5,945		—		726,809		726,809
Secured by 1-4 family residential    properties		—		2,654		2,654		1,355		1,380,742		1,382,097
Commercial and industrial loans		7,034		12,339		19,373		21,058		1,306,153		1,327,211
Consumer loans		—		4,862		4,862		—		160,802		160,802
State and other political subdivision loans		1,517		1,447		2,964		3,786		1,121,400		1,125,186
Other commercial loans		797		4,446		5,243		5,335		467,344		472,679
Total	$	9,348	$	94,725	$	104,073	$	48,050	$	10,126,849	$	10,174,899

	December 31, 2020
	ACL						LHFI
	Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total		Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total
Loans secured by real estate:
Construction, land development and    other land	$	—	$	6,854	$	6,854	$	5,756	$	508,300	$	514,056
Other secured by 1-4 family residential    properties		—		9,928		9,928		454		524,278		524,732
Secured by nonfarm, nonresidential    properties		—		48,523		48,523		12,037		2,696,989		2,709,026
Other real estate secured		—		7,382		7,382		60		1,065,904		1,065,964
Other loans secured by real estate:
Other construction		—		8,158		8,158		—		794,983		794,983
Secured by 1-4 family residential    properties		—		5,143		5,143		1,441		1,214,959		1,216,400
Commercial and industrial loans		579		14,272		14,851		14,076		1,295,002		1,309,078
Consumer loans		—		5,838		5,838		—		164,386		164,386
State and other political subdivision loans		1,700		1,490		3,190		3,970		996,806		1,000,776
Other commercial loans		2,100		5,339		7,439		5,615		519,508		525,123
Total	$	4,379	$	112,927	$	117,306	$	43,409	$	9,781,115	$	9,824,524

Changes in the ACL were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Balance at beginning of period	$	104,032		$	119,188		$	117,306		$	84,277
FASB ASU 2016-13 adoption adjustments:
LHFI		—			—			—			(3,039	)
Allowance for loan losses, acquired loans transfer		—			—			—			815
Acquired loans ACL adjustment		—			—			—			1,007
Loans charged-off		(1,586	)		(1,263	)		(7,659	)		(8,678	)
Recoveries		4,119			2,325			11,410			7,102
Net (charge-offs) recoveries		2,533			1,062			3,751			(1,576	)
PCL		(2,492	)		1,760			(16,984	)		40,526
Balance at end of period	$	104,073		$	122,010		$	104,073		$	122,010

The following tables detail changes in the ACL by loan class for the periods presented ($ in thousands):

	Three Months Ended September 30, 2021
	Balance at Beginning of Period		Charge-offs			Recoveries		PCL			Balance at End of Period
Loans secured by real estate:
Construction, land development and other land	$	5,110	$	(3	)	$	391	$	(365	)	$	5,133
Other secured by 1-4 family residential properties		10,399		(7	)		85		(254	)		10,223
Secured by nonfarm, nonresidential properties		44,416		—			45		(1,155	)		43,306
Other real estate secured		5,311		—			4		(945	)		4,370
Other loans secured by real estate:
Other construction		6,530		—			2		(587	)		5,945
Secured by 1-4 family residential properties		2,910		(144	)		15		(127	)		2,654
Commercial and industrial loans		13,973		(5	)		2,028		3,377			19,373
Consumer loans		4,876		(287	)		451		(178	)		4,862
State and other political subdivision loans		3,233		—			—		(269	)		2,964
Other commercial loans		7,274		(1,140	)		1,098		(1,989	)		5,243
Total	$	104,032	$	(1,586	)	$	4,119	$	(2,492	)	$	104,073

The decreases in the PCL for the three months ended September 30, 2021 were primarily due to improvements in the macroeconomic forecasting variables used in the ACL modeling, such as National and Southern Unemployment, National GDP, Prime Rate and Southern Vacancy Rate and the PD and LGD floors.

The PCL for the commercial and industrial loan portfolio increased $3.4 million during the three months ended September 30, 2021 primarily due to the specific reserves on individually analyzed credits.

	Three Months Ended September 30, 2020
	Balance at Beginning of Period		Charge-offs			Recoveries		PCL			Balance at End of Period
Loans secured by real estate:
Construction, land development and other land	$	11,940	$	—		$	443	$	(1,478	)	$	10,905
Other secured by 1-4 family residential properties		12,716		(18	)		75		(1,415	)		11,358
Secured by nonfarm, nonresidential properties		36,417		(115	)		18		7,442			43,762
Other real estate secured		7,600		—			42		(470	)		7,172
Other loans secured by real estate:
Other construction		10,803		—			30		(624	)		10,209
Secured by 1-4 family residential properties		10,899		—			18		(2,183	)		8,734
Commercial and industrial loans		12,550		(71	)		447		232			13,158
Consumer loans		6,397		(384	)		375		(348	)		6,040
State and other political subdivision loans		3,414		—			—		(456	)		2,958
Other commercial loans		6,452		(675	)		877		1,060			7,714
Total	$	119,188	$	(1,263	)	$	2,325	$	1,760		$	122,010

The decrease in the PCL for loans and other loans secured by real estate during the three months ended September 30, 2020 were primarily due to improvements in the microeconomic forecasting variables used in the ACL modeling, such as National and Southern Unemployment, National GDP and Prime Rate.

During the third quarter of 2020, Trustmark conducted a review of significantly impacted borrowers that received one or more payment concessions and other borrowers in industries significantly impacted by COVID-19. The increases in the PCL for loans secured by nonfarm, nonresidential properties and other commercial loans during the three months ended September 30, 2020 were primarily due to downgrades that resulted from the in-depth portfolio review for those loans affected by the COVID-19 pandemic.

	Nine Months Ended September 30, 2021
	Balance at Beginning of Period		Charge-offs			Recoveries		PCL			Balance at End of Period
Loans secured by real estate:
Construction, land development and other land	$	6,854	$	(3	)	$	1,470	$	(3,188	)	$	5,133
Other secured by 1-4 family residential properties		9,928		(91	)		337		49			10,223
Secured by nonfarm, nonresidential properties		48,523		(79	)		1,102		(6,240	)		43,306
Other real estate secured		7,382		—			15		(3,027	)		4,370
Other loans secured by real estate:
Other construction		8,158		—			46		(2,259	)		5,945
Secured by 1-4 family residential properties		5,143		(148	)		123		(2,464	)		2,654
Commercial and industrial loans		14,851		(3,702	)		3,967		4,257			19,373
Consumer loans		5,838		(1,120	)		1,200		(1,056	)		4,862
State and other political subdivision loans		3,190		—			—		(226	)		2,964
Other commercial loans		7,439		(2,516	)		3,150		(2,830	)		5,243
Total	$	117,306	$	(7,659	)	$	11,410	$	(16,984	)	$	104,073

Decreases in the PCL for the first nine months of 2021 were primarily due to improvements in the macroeconomic forecasting variables used in the ACL modeling, such as National and Southern Unemployment, National GDP, Prime Rate and Southern Vacancy Rate.

The PCL for the commercial and industrial loan portfolio increased $4.3 million during the nine months ended September 30, 2021 and was primarily due to specific reserves for individually analyzed loans.

	Nine Months Ended September 30, 2020
	Balance at Beginning of Period		FASB ASU 2016-13 Adoption Adjustment			Charge-offs			Recoveries		PCL			Balance at End of Period
Loans secured by real estate:
Construction, land development and other land	$	6,371	$	(188	)	$	(7	)	$	629	$	4,100		$	10,905
Other secured by 1-4 family residential properties		5,888		4,188			(118	)		221		1,179			11,358
Secured by nonfarm, nonresidential properties		26,158		(8,179	)		(2,563	)		524		27,822			43,762
Other real estate secured		4,024		(765	)		(8	)		60		3,861			7,172
Other loans secured by real estate:
Other construction		1,889		3,202			—			70		5,048			10,209
Secured by 1-4 family residential properties		3,044		2,891			(19	)		124		2,694			8,734
Commercial and industrial loans		25,992		(8,964	)		(1,350	)		1,180		(3,700	)		13,158
Consumer loans		3,379		2,059			(1,745	)		1,316		1,031			6,040
State and other political subdivision loans		2,229		2,455			—			—		(1,726	)		2,958
Other commercial loans		5,303		2,084			(2,868	)		2,978		217			7,714
Total	$	84,277	$	(1,217	)	$	(8,678	)	$	7,102	$	40,526		$	122,010