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

3 Months Ended

Mar. 31, 2022

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

Loan Portfolio Held for Investment

At March 31, 2022 and December 31, 2021, LHFI consisted of the following ($ in thousands):

	March 31, 2022		December 31, 2021
Loans secured by real estate:
Construction, land development and other land	$	628,331	$	596,968
Other secured by 1-4 family residential properties		513,497		517,683
Secured by nonfarm, nonresidential properties		2,975,039		2,977,084
Other real estate secured		715,939		726,043
Other loans secured by real estate:
Other construction		645,628		711,813
Secured by 1-4 family residential properties		1,593,501		1,460,310
Commercial and industrial loans		1,495,060		1,414,279
Consumer loans		157,355		162,555
State and other political subdivision loans		1,215,023		1,146,251
Other commercial loans		457,756		534,843
LHFI		10,397,129		10,247,829
Less ACL		98,734		99,457
Net LHFI	$	10,298,395	$	10,148,372

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 March 31, 2022 and December 31, 2021 ($ in thousands):

	March 31, 2022
	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	$	150	$	3,931	$	—
Other secured by 1-4 family residential properties		—		3,238		243
Secured by nonfarm, nonresidential properties		14,906		16,602		—
Other real estate secured		—		94		—
Other loans secured by real estate:
Other construction		—		7,667		—
Secured by 1-4 family residential properties		1,300		13,164		1,091
Commercial and industrial loans		434		15,922		—
Consumer loans		—		112		169
State and other political subdivision loans		—		3,430		—
Other commercial loans		—		239		—
Total	$	16,790	$	64,399	$	1,503

	December 31, 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	$	4,784	$	5,878	$	7
Other secured by 1-4 family residential properties		1,319		3,418		148
Secured by nonfarm, nonresidential properties		10,842		12,508		—
Other real estate secured		56		150		—
Other loans secured by real estate:
Other construction		—		—		—
Secured by 1-4 family residential properties		—		12,775		1,655
Commercial and industrial loans		1,363		19,328		—
Consumer loans		—		117		304
State and other political subdivision loans		—		3,664		—
Other commercial loans		4,405		4,860		—
Total	$	22,769	$	62,698	$	2,114

Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type

The following tables provide an aging analysis of the amortized cost basis of past due LHFI (including nonaccrual LHFI) at March 31, 2022 and December 31, 2021 ($ in thousands):

	March 31, 2022
	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	$	511	$	295	$	3,705	$	4,511	$	623,820	$	628,331
Other secured by 1-4 family residential    properties		1,803		680		838		3,321		510,176		513,497
Secured by nonfarm, nonresidential    properties		400		58		1,421		1,879		2,973,160		2,975,039
Other real estate secured		43		—		85		128		715,811		715,939
Other loans secured by real estate:
Other construction		—		—		—		—		645,628		645,628
Secured by 1-4 family residential properties		2,712		1,138		6,290		10,140		1,583,361		1,593,501
Commercial and industrial loans		1,568		14,835		234		16,637		1,478,423		1,495,060
Consumer loans		990		149		169		1,308		156,047		157,355
State and other political subdivision loans		—		—		177		177		1,214,846		1,215,023
Other commercial loans		126		—		91		217		457,539		457,756
Total	$	8,153	$	17,155	$	13,010	$	38,318	$	10,358,811	$	10,397,129

	December 31, 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	$	323	$	11	$	5,241	$	5,575	$	591,393	$	596,968
Other secured by 1-4 family residential    properties		1,811		368		567		2,746		514,937		517,683
Secured by nonfarm, nonresidential    properties		845		—		1,442		2,287		2,974,797		2,977,084
Other real estate secured		—		—		142		142		725,901		726,043
Other loans secured by real estate:
Other construction		—		—		—		—		711,813		711,813
Secured by 1-4 family residential properties		2,799		531		6,720		10,050		1,450,260		1,460,310
Commercial and industrial loans		607		41		1,107		1,755		1,412,524		1,414,279
Consumer loans		1,673		182		305		2,160		160,395		162,555
State and other political subdivision loans		32		—		177		209		1,146,042		1,146,251
Other commercial loans		220		32		118		370		534,473		534,843
Total	$	8,310	$	1,165	$	15,819	$	25,294	$	10,222,535	$	10,247,829

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 March 31,
	2022						2021
	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		1	$	31	$	31		2	$	126	$	126
Secured by nonfarm,    nonresidential properties		2		5,109		5,109		—		—		—
Other loans secured by real estate:
Secured by 1-4 family residential    properties		1		67		66		—		—		—
Commercial and industrial loans		1		500		500		1		14		14
Total		5	$	5,707	$	5,706		3	$	140	$	140

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):

	Three Months Ended March 31,
	2022				2021
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by real estate:
Construction, land development and other land		5	$	5,583		—	$	—
Other secured by 1-4 family residential properties		1		16		3		156
Secured by nonfarm, nonresidential properties		—		—		1		139
Total		6	$	5,599		4	$	295

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

The following tables detail LHFI classified as TDRs by loan class at March 31, 2022 and 2021 ($ in thousands):

	March 31, 2022
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	3,565	$	3,565
Other secured by 1-4 family residential properties		—		939		939
Secured by nonfarm, nonresidential properties		—		12,266		12,266
Other loans secured by real estate:
Secured by 1-4 family residential properties		17		2,495		2,512
Commercial and industrial loans		500		198		698
Consumer loans		—		3		3
State and other political subdivision loans		—		3,252		3,252
Other commercial loans		—		36		36
Total TDRs	$	517	$	22,754	$	23,271

	March 31, 2021
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	11	$	11
Other secured by 1-4 family residential properties		42		3,644		3,686
Secured by nonfarm, nonresidential properties		—		3,846		3,846
Commercial and industrial loans		1,500		10,073		11,573
Consumer loans		—		15		15
State and other political subdivision loans		—		3,737		3,737
Other commercial loans		—		81		81
Total TDRs	$	1,542	$	21,407	$	22,949

Schedule Of Amortized Cost Basis Of Collateral Dependent Loans by Class of Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2022 and December 31, 2021 ($ in thousands):

	March 31, 2022
	Real Estate		Equipment and  Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	3,707	$	—	$	—	$	—	$	—	$	3,707
Other secured by 1-4 family    residential properties		—		—		—		—		—		—
Secured by nonfarm, nonresidential    properties		15,136		—		—		—		—		15,136
Other real estate secured		—		—		—		—		—		—
Other loans secured by real estate:
Other construction		7,667		—		—		—		—		7,667
Secured by 1-4 family residential    properties		1,300		—		—		—		—		1,300
Commercial and industrial loans		42		1		372		80		14,776		15,271
State and other political subdivision loans		3,430		—		—		—		—		3,430
Other commercial loans		—		—		—		—		36		36
Total	$	31,282	$	1	$	372	$	80	$	14,812	$	46,547

	December 31, 2021
	Real Estate		Equipment and  Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	5,198	$	—	$	—	$	—	$	—	$	5,198
Secured by nonfarm, nonresidential    properties		11,072		—		—		—		—		11,072
Other real estate secured		56		—		—		—		—		56
Other loans secured by real estate:
Secured by 1-4 family residential    properties		1,319		—		—		—		—		1,319
Commercial and industrial loans		42		349		1,253		370		16,430		18,444
State and other political subdivision loans		3,664		—		—		—		—		3,664
Other commercial loans		4,572		—		—		—		36		4,608
Total	$	25,923	$	349	$	1,253	$	370	$	16,466	$	44,361

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 March 31, 2022 and December 31, 2021 ($ in thousands):

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	94,785	$	316,855	$	68,312	$	9,501	$	1,692	$	3,447	$	37,676	$	532,268
Special Mention - RR 7		6,312		—		—		—		—		—		—		6,312
Substandard - RR 8		—		291		—		3,428		29		—		—		3,748
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		101,097		317,146		68,312		12,929		1,721		3,489		37,676		542,370
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	10,785	$	40,620	$	20,974	$	11,715	$	8,350	$	6,895	$	8,354	$	107,693
Special Mention - RR 7		—		106		99		—		—		—		—		205
Substandard - RR 8		295		416		134		6		170		355		—		1,376
Doubtful - RR 9		—		20		—		—		—		—		—		20
Total		11,080		41,162		21,207		11,721		8,520		7,250		8,354		109,294
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	226,732	$	683,655	$	596,896	$	589,462	$	317,774	$	403,703	$	101,019	$	2,919,241
Special Mention - RR 7		976		—		—		404		—		552		—		1,932
Substandard - RR 8		518		13,467		10,951		6,367		1,807		20,317		250		53,677
Doubtful - RR 9		41		—		—		97		—		21		—		159
Total		228,267		697,122		607,847		596,330		319,581		424,593		101,269		2,975,009
Other real estate secured:
Pass - RR 1 through RR 6	$	116,864	$	188,448	$	143,574	$	157,489	$	37,541	$	55,094	$	15,084	$	714,094
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		629		—		65		—		8		833		—		1,535
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		117,493		188,448		143,639		157,489		37,549		55,927		15,084		715,629

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	55,008	$	249,211	$	329,794	$	1,626	$	—	$	—	$	2,322	$	637,961
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		7,667		—		—		—		—		—		7,667
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		55,008		256,878		329,794		1,626		—		—		2,322		645,628
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	162,793	$	404,875	$	232,543	$	67,420	$	26,232	$	79,543	$	467,366	$	1,440,772
Special Mention - RR 7		64		633		92		49		496		37		95		1,466
Substandard - RR 8		4,854		8,205		345		637		548		7,683		30,298		52,570
Doubtful - RR 9		119		20		39		23		42		4		5		252
Total		167,830		413,733		233,019		68,129		27,318		87,267		497,764		1,495,060
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	144,731	$	339,370	$	145,652	$	55,930	$	29,709	$	489,153	$	3,698	$	1,208,243
Special Mention - RR 7		—		—		—		—		—		3,350		—		3,350
Substandard - RR 8		—		—		—		—		—		3,430		—		3,430
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		144,731		339,370		145,652		55,930		29,709		495,933		3,698		1,215,023
Other commercial loans:
Pass - RR 1 through RR 6	$	14,801	$	88,445	$	42,139	$	53,179	$	7,844	$	46,714	$	191,367	$	444,489
Special Mention - RR 7		3,899		—		—		—		—		—		9,013		12,912
Substandard - RR 8		—		120		7		45		33		—		100		305
Doubtful - RR 9		25		—		2		—		—		23		—		50
Total		18,725		88,565		42,148		53,224		7,877		46,737		200,480		457,756
Total commercial    LHFI	$	844,231	$	2,342,424	$	1,591,618	$	957,378	$	432,275	$	1,121,196	$	866,647	$	8,155,769

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	3,197	$	15,125	$	51,140	$	10,470	$	2,524	$	2,755	$	—	$	85,211
Past due 30-89 days		—		—		256		309		21		9		—		595
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		63		—		—		—		92		—		155
Total		3,197		15,188		51,396		10,779		2,545		2,856		—		85,961
Other secured by 1-4 family    residential properties:
Current	$	1,496	$	18,168	$	7,960	$	5,910	$	5,217	$	10,066	$	350,539	$	399,356
Past due 30-89 days		—		162		8		67		5		130		1,529		1,901
Past due 90 days or more		—		—		—		—		—		24		219		243
Nonaccrual		—		24		48		27		9		592		2,003		2,703
Total		1,496		18,354		8,016		6,004		5,231		10,812		354,290		404,203
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	29	$	—	$	—	$	—	$	1	$	—	$	30
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		29		—		—		—		1		—		30
Other real estate secured:
Current	$	—	$	—	$	95	$	—	$	7	$	195	$	—	$	297
Past due 30-89 days		—		—		—		—		—		13		—		13
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		95		—		7		208		—		310

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of March 31, 2022	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	207,907	$	608,256	$	221,365	$	124,083	$	99,446	$	314,754	$	—	$	1,575,811
Past due 30-89 days		—		869		913		279		119		1,256		—		3,436
Past due 90 days or more		—		369		406		—		9		306		—		1,090
Nonaccrual		—		621		1,691		1,656		2,235		6,961		—		13,164
Total		207,907		610,115		224,375		126,018		101,809		323,277		—		1,593,501
Consumer loans:
Current	$	20,328	$	51,874	$	19,863	$	6,244	$	3,612	$	1,199	$	52,817	$	155,937
Past due 30-89 days		302		224		125		87		16		4		380		1,138
Past due 90 days or more		17		5		4		1		—		—		141		168
Nonaccrual		4		68		13		2		6		7		12		112
Total		20,651		52,171		20,005		6,334		3,634		1,210		53,350		157,355
Total consumer LHFI	$	233,251	$	695,857	$	303,887	$	149,135	$	113,226	$	338,364	$	407,640	$	2,241,360
Total LHFI	$	1,077,482	$	3,038,281	$	1,895,505	$	1,106,513	$	545,501	$	1,459,560	$	1,274,287	$	10,397,129

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of December 31, 2021	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	376,438	$	76,176	$	21,366	$	2,189	$	1,367	$	2,890	$	26,505	$	506,931
Special Mention - RR 7		71		6,382		—		—		—		—		—		6,453
Substandard - RR 8		2,243		—		3,435		30		—		—		—		5,708
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		378,752		82,558		24,801		2,219		1,367		2,932		26,505		519,134
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	44,208	$	23,269	$	13,194	$	9,722	$	5,737	$	3,076	$	8,771	$	107,977
Special Mention - RR 7		111		143		—		—		—		—		—		254
Substandard - RR 8		721		150		6		166		46		627		—		1,716
Doubtful - RR 9		22		—		—		—		—		—		—		22
Total		45,062		23,562		13,200		9,888		5,783		3,703		8,771		109,969
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	750,869	$	604,026	$	610,446	$	350,603	$	183,115	$	279,529	$	113,808	$	2,892,396
Special Mention - RR 7		1,510		9,584		412		—		1,562		4,522		—		17,590
Substandard - RR 8		11,017		2,357		13,609		3,591		5,988		29,309		1,025		66,896
Doubtful - RR 9		43		—		105		—		—		21		—		169
Total		763,439		615,967		624,572		354,194		190,665		313,381		114,833		2,977,051
Other real estate secured:
Pass - RR 1 through RR 6	$	256,273	$	105,687	$	220,487	$	64,268	$	6,816	$	56,196	$	13,350	$	723,077
Special Mention - RR 7		—		—		—		—		—		773		—		773
Substandard - RR 8		1,684		65		—		8		—		101		—		1,858
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		257,957		105,752		220,487		64,276		6,816		57,070		13,350		725,708

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of December 31, 2021	Commercial LHFI
Other loans secured by real    estate:
Other construction
Pass - RR 1 through RR 6	$	273,747	$	393,580	$	25,142	$	—	$	—	$	—	$	17,909	$	710,378
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		1,435		—		—		—		—		—		—		1,435
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		275,182		393,580		25,142		—		—		—		17,909		711,813
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	503,073	$	249,171	$	74,239	$	33,403	$	50,016	$	35,883	$	400,423	$	1,346,208
Special Mention - RR 7		643		365		147		550		48		—		99		1,852
Substandard - RR 8		14,530		1,338		1,221		1,119		9,237		386		38,182		66,013
Doubtful - RR 9		20		46		29		107		—		4		—		206
Total		518,266		250,920		75,636		35,179		59,301		36,273		438,704		1,414,279
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	381,317	$	148,156	$	56,987	$	30,558	$	95,491	$	418,319	$	8,409	$	1,139,237
Special Mention - RR 7		—		—		—		—		—		3,350		—		3,350
Substandard - RR 8		—		—		—		—		—		3,664		—		3,664
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		381,317		148,156		56,987		30,558		95,491		425,333		8,409		1,146,251
Other commercial loans:
Pass - RR 1 through RR 6	$	103,504	$	38,661	$	64,871	$	8,643	$	7,924	$	41,112	$	232,476	$	497,191
Special Mention - RR 7		4,059		—		—		—		—		—		9,013		13,072
Substandard - RR 8		4,532		6,681		82		212		—		—		13,000		24,507
Doubtful - RR 9		—		50		—		—		—		23		—		73
Total		112,095		45,392		64,953		8,855		7,924		41,135		254,489		534,843
Total commercial    LHFI	$	2,732,070	$	1,665,887	$	1,105,778	$	505,169	$	367,347	$	879,827	$	882,970	$	8,139,048

	Term Loans by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of December 31, 2021	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	51,849	$	16,204	$	3,024	$	3,059	$	797	$	2,404	$	—	$	77,337
Past due 30-89 days		—		265		49		5		—		14		—		333
Past due 90 days or more		—		—		—		—		—		7		—		7
Nonaccrual		64		—		—		—		—		93		—		157
Total		51,913		16,469		3,073		3,064		797		2,518		—		77,834
Other secured by 1-4 family    residential properties:
Current	$	21,166	$	11,098	$	6,119	$	5,903	$	3,291	$	7,853	$	347,743	$	403,173
Past due 30-89 days		5		34		87		114		—		145		1,214		1,599
Past due 90 days or more		—		4		—		—		—		13		91		108
Nonaccrual		26		70		29		9		341		274		2,085		2,834
Total		21,197		11,206		6,235		6,026		3,632		8,285		351,133		407,714
Secured by nonfarm,    nonresidential properties:
Current	$	31	$	—	$	—	$	—	$	2	$	—	$	—	$	33
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		31		—		—		—		2		—		—		33
Other real estate secured:
Current	$	—	$	97	$	—	$	8	$	60	$	170	$	—	$	335
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		97		—		8		60		170		—		335
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	622,330	$	233,951	$	137,500	$	107,345	$	56,374	$	285,919	$	—	$	1,443,419
Past due 30-89 days		542		494		333		10		369		714		—		2,462
Past due 90 days or more		199		501		165		122		218		450		—		1,655
Nonaccrual		272		1,875		1,419		2,105		916		6,187		—		12,774
Total		623,343		236,821		139,417		109,582		57,877		293,270		—		1,460,310
Consumer loans:
Current	$	65,366	$	25,512	$	8,498	$	4,734	$	1,289	$	378	$	54,518	$	160,295
Past due 30-89 days		989		223		123		22		10		5		468		1,840
Past due 90 days or more		26		23		6		—		—		—		248		303
Nonaccrual		71		17		2		13		8		—		6		117
Total		66,452		25,775		8,629		4,769		1,307		383		55,240		162,555
Total consumer LHFI	$	762,936	$	290,368	$	157,354	$	123,449	$	63,675	$	304,626	$	406,373	$	2,108,781
Total LHFI	$	3,495,006	$	1,956,255	$	1,263,132	$	628,618	$	431,022	$	1,184,453	$	1,289,343	$	10,247,829

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	DCF	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 March 31, 2022 and December 31, 2021 ($ in thousands):

	March 31, 2022
	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	$	666	$	6,685	$	7,351	$	3,707		624,624	$	628,331
Other secured by 1-4 family residential    properties		—		9,867		9,867		—		513,497		513,497
Secured by nonfarm, nonresidential    properties		—		32,030		32,030		15,136		2,959,903		2,975,039
Other real estate secured		—		3,640		3,640		—		715,939		715,939
Other loans secured by real estate:
Other construction		7,667		6,280		13,947		7,667		637,961		645,628
Secured by 1-4 family residential    properties		—		5,628		5,628		1,300		1,592,201		1,593,501
Commercial and industrial loans		2,797		12,154		14,951		15,271		1,479,789		1,495,060
Consumer loans		—		4,872		4,872		—		157,355		157,355
State and other political subdivision loans		1,160		1,211		2,371		3,430		1,211,593		1,215,023
Other commercial loans		36		4,041		4,077		36		457,720		457,756
Total	$	12,326	$	86,408	$	98,734	$	46,547	$	10,350,582	$	10,397,129

	December 31, 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	$	278	$	5,801	$	6,079	$	5,198	$	591,770	$	596,968
Other secured by 1-4 family residential    properties		—		10,310		10,310		—		517,683		517,683
Secured by nonfarm, nonresidential    properties		—		37,912		37,912		11,072		2,966,012		2,977,084
Other real estate secured		—		4,713		4,713		56		725,987		726,043
Other loans secured by real estate:
Other construction		—		5,968		5,968		—		711,813		711,813
Secured by 1-4 family residential    properties		—		2,706		2,706		1,319		1,458,991		1,460,310
Commercial and industrial loans		5,750		13,189		18,939		18,444		1,395,835		1,414,279
Consumer loans		—		4,774		4,774		—		162,555		162,555
State and other political subdivision loans		1,394		1,314		2,708		3,664		1,142,587		1,146,251
Other commercial loans		203		5,145		5,348		4,608		530,235		534,843
Total	$	7,625	$	91,832	$	99,457	$	44,361	$	10,203,468	$	10,247,829

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

	Three Months Ended March 31,
	2022			2021
Balance at beginning of period	$	99,457		$	117,306
Loans charged-off		(2,242	)		(1,245	)
Recoveries		2,379			3,631
Net (charge-offs) recoveries		137			2,386
PCL, LHFI		(860	)		(10,501	)
Balance at end of period	$	98,734		$	109,191

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

	Three Months Ended March 31, 2022
	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	$	6,079	$	(28	)	$	843	$	457		$	7,351
Other secured by 1-4 family residential properties		10,310		(13	)		89		(519	)		9,867
Secured by nonfarm, nonresidential properties		37,912		—			27		(5,909	)		32,030
Other real estate secured		4,713		—			3		(1,076	)		3,640
Other loans secured by real estate:
Other construction		5,968		—			3		7,976			13,947
Secured by 1-4 family residential properties		2,706		—			6		2,916			5,628
Commercial and industrial loans		18,939		(285	)		100		(3,803	)		14,951
Consumer loans		4,774		(579	)		379		298			4,872
State and other political subdivision loans		2,708		—			—		(337	)		2,371
Other commercial loans		5,348		(1,337	)		929		(863	)		4,077
Total	$	99,457	$	(2,242	)	$	2,379	$	(860	)	$	98,734

The decreases in the PCL, LHFI for the three months ended March 31, 2022 were primarily due to improvements in credit quality and 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.

For the three months ended March 31, 2022, the PCL, LHFI for the other construction loan portfolio increased $8.0 million primarily due to specific reserves on individually analyzed credits. The PCL, LHFI for the other loans secured by 1-4 family residential properties portfolio increased $2.9 million during the three months ended March 31, 2022 primarily due to a decrease in prepayment speeds which resulted from the rising interest-rate environment.

	Three Months Ended March 31, 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	$	—		$	766	$	(2,562	)	$	5,058
Other secured by 1-4 family residential properties		9,928		(26	)		71		(1,306	)		8,667
Secured by nonfarm, nonresidential properties		48,523		—			30		(2,115	)		46,438
Other real estate secured		7,382		—			6		(1,618	)		5,770
Other loans secured by real estate:
Other construction		8,158		—			1		(3,035	)		5,124
Secured by 1-4 family residential properties		5,143		—			100		(1,490	)		3,753
Commercial and industrial loans		14,851		(23	)		1,287		4,051			20,166
Consumer loans		5,838		(442	)		362		(1,008	)		4,750
State and other political subdivision loans		3,190		—			—		(175	)		3,015
Other commercial loans		7,439		(754	)		1,008		(1,243	)		6,450
Total	$	117,306	$	(1,245	)	$	3,631	$	(10,501	)	$	109,191