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

9 Months Ended

Sep. 30, 2022

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

Loan Portfolio Held for Investment

At September 30, 2022 and December 31, 2021, LHFI consisted of the following ($ in thousands):

	September 30, 2022		December 31, 2021
Loans secured by real estate:
Construction, land development and other land	$	693,741	$	596,968
Other secured by 1-4 family residential properties		566,985		517,683
Secured by nonfarm, nonresidential properties		3,206,946		2,977,084
Other real estate secured		593,119		726,043
Other loans secured by real estate:
Other construction		953,654		711,813
Secured by 1-4 family residential properties		2,030,127		1,460,310
Commercial and industrial loans		1,689,532		1,414,279
Consumer loans		166,027		162,555
State and other political subdivision loans		1,188,703		1,146,251
Other commercial loans		497,230		534,843
LHFI		11,586,064		10,247,829
Less ACL		115,050		99,457
Net LHFI	$	11,471,014	$	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 September 30, 2022 and December 31, 2021 ($ in thousands):

	September 30, 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	$	142	$	4,383	$	—
Other secured by 1-4 family residential properties		489		3,531		292
Secured by nonfarm, nonresidential properties		5,263		7,738		—
Other real estate secured		—		574		—
Other loans secured by real estate:
Other construction		—		7,620		—
Secured by 1-4 family residential properties		1,233		14,774		1,086
Commercial and industrial loans		407		25,899		—
Consumer loans		—		129		416
State and other political subdivision loans		—		2,988		—
Other commercial loans		—		291		48
Total	$	7,534	$	67,927	$	1,842

	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 September 30, 2022 and December 31, 2021 ($ in thousands):

	September 30, 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	$	638	$	4,047	$	159	$	4,844	$	688,897	$	693,741
Other secured by 1-4 family residential    properties		2,490		559		862		3,911		563,074		566,985
Secured by nonfarm, nonresidential    properties		1,039		—		1,948		2,987		3,203,959		3,206,946
Other real estate secured		440		48		—		488		592,631		593,119
Other loans secured by real estate:
Other construction		—		—		7,620		7,620		946,034		953,654
Secured by 1-4 family residential properties		8,161		3,066		5,437		16,664		2,013,463		2,030,127
Commercial and industrial loans		1,592		45		790		2,427		1,687,105		1,689,532
Consumer loans		1,329		390		417		2,136		163,891		166,027
State and other political subdivision loans		143		—		177		320		1,188,383		1,188,703
Other commercial loans		378		29		190		597		496,633		497,230
Total	$	16,210	$	8,184	$	17,600	$	41,994	$	11,544,070	$	11,586,064

	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 September 30,
	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		2	$	248	$	241		—	$	—	$	—
Secured by nonfarm,    nonresidential properties		1		501		499		3		483		483
Other loans secured by real estate:
Secured by 1-4 family residential    properties		4		158		166		1		152		152
Total		7	$	907	$	906		4	$	635	$	635

	Nine Months Ended September 30,
	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:
Construction, land development    and other land		1	$	146	$	146		5	$	5,582	$	5,582
Other secured by 1-4 family    residential properties		4		321		314		3		37		37
Secured by nonfarm,    nonresidential properties		4		6,505		6,503		4		860		860
Other real estate secured		1		85		85		—		—		—
Other loans secured by real estate:
Secured by 1-4 family residential    properties		10		1,182		1,209		4		401		401
Commercial and industrial loans		1		500		500		2		1,014		1,014
Other commercial loans		—		—		—		2		4,929		4,929
Total		21	$	8,739	$	8,757		20	$	12,823	$	12,823

Troubled Debt Restructuring Subsequently Defaulted

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

	Nine Months Ended September 30,
	2022				2021
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by real estate:
Construction, land development and other land		—	$	—		5	$	5,582
Other secured by 1-4 family residential properties		—		—		1		16
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		—		1		78
Other commercial loans		—		—		2		4,929
Total		—	$	—		9	$	10,605

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, 2022 and 2021 ($ in thousands):

	September 30, 2022
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	4,162	$	4,162
Other secured by 1-4 family residential properties		195		862		1,057
Secured by nonfarm, nonresidential properties		—		4,117		4,117
Other real estate secured		—		79		79
Other loans secured by real estate:
Secured by 1-4 family residential properties		114		3,314		3,428
Commercial and industrial loans		—		49		49
State and other political subdivision loans		—		2,811		2,811
Other commercial loans		—		36		36
Total TDRs	$	309	$	15,430	$	15,739

	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

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 September 30, 2022 and December 31, 2021 ($ in thousands):

	September 30, 2022
	Real Estate		Equipment and  Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	4,273	$	—	$	—	$	—	$	—	$	4,273
Other secured by 1-4 family    residential properties		489		—		—		—		—		489
Secured by nonfarm, nonresidential    properties		5,493		—		—		—		—		5,493
Other loans secured by real estate:
Other construction		7,620		—		—		—		—		7,620
Secured by 1-4 family residential    properties		1,233		—		—		—		—		1,233
Commercial and industrial loans		40		—		349		398		24,494		25,281
State and other political subdivision loans		2,988		—		—		—		—		2,988
Other commercial loans		—		—		—		—		36		36
Total	$	22,136	$	—	$	349	$	398	$	24,530	$	47,413

	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 September 30, 2022 and December 31, 2021 ($ in thousands):

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of September 30, 2022	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	303,156	$	162,650	$	36,577	$	7,545	$	1,445	$	2,772	$	78,876	$	593,021
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		159		245		—		3,886		—		—		—		4,290
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		303,315		162,895		36,577		11,431		1,445		2,814		78,876		597,353
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	33,783	$	34,326	$	18,228	$	9,818	$	7,141	$	3,556	$	13,669	$	120,521
Special Mention - RR 7		—		98		19		—		—		—		—		117
Substandard - RR 8		522		126		123		89		156		295		—		1,311
Doubtful - RR 9		—		16		—		—		—		—		—		16
Total		34,305		34,566		18,370		9,907		7,297		3,851		13,669		121,965
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	680,957	$	654,012	$	616,131	$	494,170	$	258,703	$	331,303	$	121,487	$	3,156,763
Special Mention - RR 7		933		—		—		273		—		—		—		1,206
Substandard - RR 8		13,216		1,779		9,408		928		4,626		18,861		—		48,818
Doubtful - RR 9		36		—		—		84		—		18		—		138
Total		695,142		655,791		625,539		495,455		263,329		350,182		121,487		3,206,925
Other real estate secured:
Pass - RR 1 through RR 6	$	193,674	$	124,859	$	113,221	$	115,830	$	11,679	$	19,849	$	13,557	$	592,669
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		64		—		7		79		96		246
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		193,674		124,859		113,285		115,830		11,686		19,928		13,653		592,915

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of September 30, 2022	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	254,890	$	320,751	$	369,552	$	841	$	—	$	—	$	—	$	946,034
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		7,620		—		—		—		—		—		7,620
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		254,890		328,371		369,552		841		—		—		—		953,654
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	505,209	$	273,347	$	151,087	$	50,821	$	17,795	$	72,908	$	574,211	$	1,645,378
Special Mention - RR 7		—		—		9		—		—		—		—		9
Substandard - RR 8		7,577		10,000		1,208		375		91		5,403		19,273		43,927
Doubtful - RR 9		127		16		12		10		38		4		11		218
Total		512,913		283,363		152,316		51,206		17,924		78,315		593,495		1,689,532
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	320,188	$	234,723	$	127,801	$	41,354	$	22,216	$	436,733	$	—	$	1,183,015
Special Mention - RR 7		—		—		—		—		—		2,700		—		2,700
Substandard - RR 8		—		—		—		—		—		2,988		—		2,988
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		320,188		234,723		127,801		41,354		22,216		442,421		—		1,188,703
Other commercial loans:
Pass - RR 1 through RR 6	$	80,800	$	42,678	$	30,671	$	38,759	$	6,919	$	25,768	$	256,633	$	482,228
Special Mention - RR 7		879		—		—		—		—		—		—		879
Substandard - RR 8		3,711		106		2		36		29		1,179		9,013		14,076
Doubtful - RR 9		24		—		—		—		—		23		—		47
Total		85,414		42,784		30,673		38,795		6,948		26,970		265,646		497,230
Total commercial    LHFI	$	2,399,841	$	1,867,352	$	1,474,113	$	764,819	$	330,845	$	924,481	$	1,086,826	$	8,848,277

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of September 30, 2022	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	43,286	$	42,072	$	4,438	$	2,265	$	1,728	$	2,179	$	—	$	95,968
Past due 30-89 days		—		306		—		—		19		27		—		352
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		59		—		—		—		9		—		68
Total		43,286		42,437		4,438		2,265		1,747		2,215		—		96,388
Other secured by 1-4 family    residential properties:
Current	$	15,589	$	8,922	$	5,635	$	5,245	$	4,473	$	8,101	$	391,803	$	439,768
Past due 30-89 days		81		77		10		57		6		333		1,256		1,820
Past due 90 days or more		—		—		—		—		—		37		256		293
Nonaccrual		88		22		4		22		8		450		2,545		3,139
Total		15,758		9,021		5,649		5,324		4,487		8,921		395,860		445,020
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	21	$	—	$	—	$	—	$	—	$	—	$	21
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		21		—		—		—		—		—		21
Other real estate secured:
Current	$	—	$	—	$	91	$	—	$	6	$	107	$	—	$	204
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		91		—		6		107		—		204

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of September 30, 2022	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	859,525	$	571,302	$	207,478	$	112,197	$	84,201	$	169,410	$	—	$	2,004,113
Past due 30-89 days		1,797		3,525		1,318		313		542		2,665		—		10,160
Past due 90 days or more		—		918		136		—		—		31		—		1,085
Nonaccrual		855		1,856		2,849		1,871		1,722		5,616		—		14,769
Total		862,177		577,601		211,781		114,381		86,465		177,722		—		2,030,127
Consumer loans:
Current	$	57,103	$	33,978	$	12,889	$	3,337	$	2,137	$	596	$	53,725	$	163,765
Past due 30-89 days		739		153		134		24		25		15		626		1,716
Past due 90 days or more		44		174		2		1		—		—		196		417
Nonaccrual		61		20		3		2		5		—		38		129
Total		57,947		34,325		13,028		3,364		2,167		611		54,585		166,027
Total consumer LHFI	$	979,168	$	663,405	$	234,987	$	125,334	$	94,872	$	189,576	$	450,445	$	2,737,787
Total LHFI	$	3,379,009	$	2,530,757	$	1,709,100	$	890,153	$	425,717	$	1,114,057	$	1,537,271	$	11,586,064

	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 September 30, 2022 and December 31, 2021 ($ in thousands):

	September 30, 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	$	451	$	9,800	$	10,251	$	4,273		689,468	$	693,741
Other secured by 1-4 family residential    properties		—		10,739		10,739		489		566,496		566,985
Secured by nonfarm, nonresidential    properties		—		25,924		25,924		5,493		3,201,453		3,206,946
Other real estate secured		—		3,398		3,398		—		593,119		593,119
Other loans secured by real estate:
Other construction		7,620		6,299		13,919		7,620		946,034		953,654
Secured by 1-4 family residential    properties		—		15,395		15,395		1,233		2,028,894		2,030,127
Commercial and industrial loans		10,622		13,482		24,104		25,281		1,664,251		1,689,532
Consumer loans		—		5,028		5,028		—		166,027		166,027
State and other political subdivision loans		719		875		1,594		2,988		1,185,715		1,188,703
Other commercial loans		36		4,662		4,698		36		497,194		497,230
Total	$	19,448	$	95,602	$	115,050	$	47,413	$	11,538,651	$	11,586,064

	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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance at beginning of period	$	103,140		$	104,032		$	99,457		$	117,306
Loans charged-off		(2,920	)		(1,586	)		(7,439	)		(7,659	)
Recoveries		1,911			4,119			8,257			11,410
Net (charge-offs) recoveries		(1,009	)		2,533			818			3,751
PCL, LHFI		12,919			(2,492	)		14,775			(16,984	)
Balance at end of period	$	115,050		$	104,073		$	115,050		$	104,073

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

	Three Months Ended September 30, 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	$	7,301	$	(189	)	$	43	$	3,096		$	10,251
Other secured by 1-4 family residential properties		10,038		(33	)		234		500			10,739
Secured by nonfarm, nonresidential properties		29,735		—			35		(3,846	)		25,924
Other real estate secured		3,297		—			4		97			3,398
Other loans secured by real estate:
Other construction		14,397		(153	)		1		(326	)		13,919
Secured by 1-4 family residential properties		12,250		(37	)		125		3,057			15,395
Commercial and industrial loans		14,103		(191	)		111		10,081			24,104
Consumer loans		5,139		(458	)		425		(78	)		5,028
State and other political subdivision loans		1,917		—			—		(323	)		1,594
Other commercial loans		4,963		(1,859	)		933		661			4,698
Total	$	103,140	$	(2,920	)	$	1,911	$	12,919		$	115,050

The increases in the PCL, LHFI for the three months ended September 30, 2022 were primarily due to a less positive outlook in the macroeconomic forecasting, an increase in loan growth and specific reserves for individually analyzed loans.

The PCL, LHFI for the secured by nonfarm, nonresidential properties portfolio decreased $3.8 million during the three months ended September 30, 2022 primarily due to reductions in the pandemic qualitative factor.

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

	Nine Months Ended September 30, 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	$	(223	)	$	1,230	$	3,165		$	10,251
Other secured by 1-4 family residential properties		10,310		(95	)		529		(5	)		10,739
Secured by nonfarm, nonresidential properties		37,912		—			1,536		(13,524	)		25,924
Other real estate secured		4,713		(131	)		11		(1,195	)		3,398
Other loans secured by real estate:
Other construction		5,968		(153	)		205		7,899			13,919
Secured by 1-4 family residential properties		2,706		(116	)		135		12,670			15,395
Commercial and industrial loans		18,939		(566	)		414		5,317			24,104
Consumer loans		4,774		(1,394	)		1,256		392			5,028
State and other political subdivision loans		2,708		—			—		(1,114	)		1,594
Other commercial loans		5,348		(4,761	)		2,941		1,170			4,698
Total	$	99,457	$	(7,439	)	$	8,257	$	14,775		$	115,050

The increases in the PCL, LHFI for the nine months ended September 30, 2022 were primarily due to loan growth, the nature and volume of the portfolio, and specific reserves for individually analyzed loans.

For the nine months ended September 30, 2022, the decreases in the PCL, LHFI for the secured by nonfarm, nonresidential properties and other real estate secured loan portfolios was primarily due to a positive economic outlook and the initial stages of resolution of the External Factor- Pandemic qualitative factor. The decrease in the PCL, LHFI for the state and other political subdivision loans portfolio was due to routine modeling assumption updates.

	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