LHFI and ACL, LHFI (Tables)

3 Months Ended

9 Months Ended

Mar. 31, 2023

Sep. 30, 2022

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

Loan Portfolio Held for Investment

At March 31, 2023 and December 31, 2022, LHFI consisted of the following ($ in thousands):

	March 31, 2023		December 31, 2022
Loans secured by real estate:
Construction, land development and other land	$	682,214	$	690,616
Other secured by 1-4 family residential properties		595,520		590,790
Secured by nonfarm, nonresidential properties		3,375,579		3,278,830
Other real estate secured		847,527		742,538
Other loans secured by real estate:
Other construction		1,041,558		1,028,926
Secured by 1-4 family residential properties		2,226,528		2,185,057
Commercial and industrial loans		1,914,137		1,821,259
Consumer loans		166,464		170,230
State and other political subdivision loans		1,193,727		1,223,863
Other commercial loans		453,941		471,930
LHFI		12,497,195		12,204,039
Less ACL		122,239		120,214
Net LHFI	$	12,374,956	$	12,083,825

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, 2023 and December 31, 2022 ($ in thousands):

	March 31, 2023
	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	$	119	$	2,039	$	—
Other secured by 1-4 family residential properties		473		4,313		787
Secured by nonfarm, nonresidential properties		4,168		6,871		—
Other real estate secured		—		172		—
Other loans secured by real estate:
Other construction		—		7,620		—
Secured by 1-4 family residential properties		1,672		25,247		953
Commercial and industrial loans		14,181		24,842		135
Consumer loans		—		239		286
Other commercial loans		—		1,032		94
Total	$	20,613	$	72,375	$	2,255

	December 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	$	137	$	1,902	$	—
Other secured by 1-4 family residential properties		482		3,957		534
Secured by nonfarm, nonresidential properties		4,841		6,957		—
Other real estate secured		—		231		—
Other loans secured by real estate:
Other construction		—		7,620		—
Secured by 1-4 family residential properties		1,193		19,775		3,118
Commercial and industrial loans		14,441		25,102		—
Consumer loans		—		181		277
Other commercial loans		—		247		—
Total	$	21,094	$	65,972	$	3,929

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, 2023 and December 31, 2022 ($ in thousands):

	March 31, 2023
	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	$	856	$	—	$	1,495	$	2,351	$	679,863	$	682,214
Other secured by 1-4 family residential    properties		2,385		1,115		1,910		5,410		590,110		595,520
Secured by nonfarm, nonresidential    properties		1,161		16		1,093		2,270		3,373,309		3,375,579
Other real estate secured		2,536		42		—		2,578		844,949		847,527
Other loans secured by real estate:
Other construction		—		—		7,620		7,620		1,033,938		1,041,558
Secured by 1-4 family residential properties		7,199		4,439		9,692		21,330		2,205,198		2,226,528
Commercial and industrial loans		1,313		503		883		2,699		1,911,438		1,914,137
Consumer loans		1,324		312		286		1,922		164,542		166,464
State and other political subdivision loans		1,286		—		—		1,286		1,192,441		1,193,727
Other commercial loans		402		179		118		699		453,242		453,941
Total	$	18,462	$	6,606	$	23,097	$	48,165	$	12,449,030	$	12,497,195

	December 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	$	1,972	$	199	$	34	$	2,205	$	688,411	$	690,616
Other secured by 1-4 family residential    properties		3,682		1,206		1,281		6,169		584,621		590,790
Secured by nonfarm, nonresidential    properties		825		18		794		1,637		3,277,193		3,278,830
Other real estate secured		131		30		—		161		742,377		742,538
Other loans secured by real estate:
Other construction		—		—		7,620		7,620		1,021,306		1,028,926
Secured by 1-4 family residential properties		10,709		4,236		9,999		24,944		2,160,113		2,185,057
Commercial and industrial loans		1,966		508		8,974		11,448		1,809,811		1,821,259
Consumer loans		2,199		645		279		3,123		167,107		170,230
State and other political subdivision loans		431		—		—		431		1,223,432		1,223,863
Other commercial loans		785		45		24		854		471,076		471,930
Total	$	22,700	$	6,887	$	29,005	$	58,592	$	12,145,447	$	12,204,039

Impact of Modifications Classified as Troubled Debt Restructurings

The following table presents the amortized cost of LHFI at March 31, 2023 by class of loan and type of modification that were both experiencing financial difficulty and modified during the three months ended March 31, 2023 ($ in thousands). The percentage of the amortized cost basis of LHFI that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of LHFI is also presented below:

	March 31, 2023
	Term Extension		% of Total Class of Loan
Loans secured by real estate:
Secured by nonfarm,    nonresidential properties	$	384		0.01	%
Other loans secured by real estate:
Secured by 1-4 family    residential properties		492		0.02	%
Total	$	876		0.01	%

Troubled debt restructurings on financial effect

The following table details the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period presented:

	Three Months Ended March 31, 2023
	Financial Effect
Loans secured by real estate:
Secured by nonfarm, nonresidential properties	Renewed with an extended amortization period and lowered the monthly payment amount for the borrower.
Other loans secured by real estate:
Secured by 1-4 family residential properties	Extended the amortization periods on four loans by a weighted-average of 14 years, which reduced the aggregate monthly payment amounts for the borrowers.

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

The following table provides details of the performance of such LHFI that have been modified during the period presented ($ in thousands):

	Three Months Ended March 31, 2023
	Past Due
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total
Loans secured by real estate:
Secured by nonfarm, nonresidential    properties	$	—	$	—	$	—	$	—	$	384	$	384
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		—		—		—		492		492
Total	$	—	$	—	$	—	$	—	$	876	$	876

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, 2023 and December 31, 2022 ($ in thousands):

	March 31, 2023
	Real Estate		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	1,540	$	—	$	—	$	1,540
Other secured by 1-4 family    residential properties		473		—		—		473
Secured by nonfarm, nonresidential    properties		4,168		—		—		4,168
Other loans secured by real estate:
Other construction		7,620		—		—		7,620
Secured by 1-4 family residential    properties		1,672		—		—		1,672
Commercial and industrial loans		39		70		23,392		23,501
Other commercial loans		—		—		879		879
Total	$	15,512	$	70	$	24,271	$	39,853

	December 31, 2022
	Real Estate		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	1,558	$	—	$	—	$	—	$	1,558
Other secured by 1-4 family    residential properties		482		—		—		—		482
Secured by nonfarm, nonresidential    properties		4,841		—		—		—		4,841
Other loans secured by real estate:
Other construction		7,620		—		—		—		7,620
Secured by 1-4 family residential    properties		1,193		—		—		—		1,193
Commercial and industrial loans		40		233		395		23,926		24,594
Total	$	15,734	$	233	$	395	$	23,926	$	40,288

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, 2023 and December 31, 2022 ($ in thousands):

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of March 31, 2023	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	108,703	$	289,271	$	96,128	$	17,647	$	3,056	$	2,923	$	59,432	$	577,160
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		2,380		1,113		—		—		1,413		—		40		4,946
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		111,083		290,384		96,128		17,647		4,469		2,965		59,472		582,148
Current period gross    charge-offs		—		4		10		—		—		—		—		14
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	6,593	$	40,253	$	30,862	$	16,462	$	8,893	$	7,370	$	15,077	$	125,510
Special Mention - RR 7		—		29		62		15		—		—		—		106
Substandard - RR 8		271		351		70		71		86		480		62		1,391
Doubtful - RR 9		—		13		—		—		—		—		—		13
Total		6,864		40,646		30,994		16,548		8,979		7,850		15,139		127,020
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	160,322	$	857,606	$	635,982	$	654,501	$	431,127	$	459,016	$	128,726	$	3,327,280
Special Mention - RR 7		926		—		—		—		—		—		—		926
Substandard - RR 8		384		14,017		1,627		9,592		9,140		11,805		673		47,238
Doubtful - RR 9		31		—		—		—		73		16		—		120
Total		161,663		871,623		637,609		664,093		440,340		470,837		129,399		3,375,564
Current period gross    charge-offs		—		—		—		—		—		28		—		28
Other real estate secured:
Pass - RR 1 through RR 6	$	31,331	$	268,530	$	184,909	$	231,161	$	93,685	$	25,637	$	11,065	$	846,318
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		180		408		304		—		65		82		1,039
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		31,331		268,710		185,317		231,465		93,685		25,702		11,147		847,357
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of March 31, 2023	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	98,787	$	387,849	$	331,813	$	214,664	$	825	$	—	$	—	$	1,033,938
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		7,620		—		—		—		—		7,620
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		98,787		387,849		339,433		214,664		825		—		—		1,041,558
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	174,523	$	723,562	$	214,009	$	89,717	$	41,429	$	56,865	$	556,025	$	1,856,130
Special Mention - RR 7		—		11		225		12,005		25		—		6,489		18,755
Substandard - RR 8		—		6,646		9,803		1,826		175		55		20,485		38,990
Doubtful - RR 9		—		162		50		5		—		32		13		262
Total		174,523		730,381		224,087		103,553		41,629		56,952		583,012		1,914,137
Current period gross    charge-offs		—		204		191		58		—		11		7		471
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	14,837	$	354,676	$	222,697	$	121,049	$	38,350	$	432,774	$	9,344	$	1,193,727
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		—		—		—		—		—		—
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		14,837		354,676		222,697		121,049		38,350		432,774		9,344		1,193,727
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other commercial loans:
Pass - RR 1 through RR 6	$	16,001	$	76,463	$	34,515	$	26,447	$	34,269	$	13,591	$	237,774	$	439,060
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		16		4,507		89		—		—		1,104		9,141		14,857
Doubtful - RR 9		—		24		—		—		—		—		—		24
Total		16,017		80,994		34,604		26,447		34,269		14,695		246,915		453,941
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Total commercial    LHFI	$	615,105	$	3,025,263	$	1,770,869	$	1,395,466	$	662,546	$	1,011,775	$	1,054,428	$	9,535,452
Total commercial LHFI    gross charge-offs	$	—	$	208	$	201	$	58	$	—	$	39	$	7	$	513

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of March 31, 2023	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	5,155	$	65,076	$	21,925	$	3,287	$	1,636	$	2,854	$	—	$	99,933
Past due 30-89 days		—		—		—		—		7		28		—		35
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		56		—		35		7		—		98
Total		5,155		65,076		21,981		3,287		1,678		2,889		—		100,066
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other secured by 1-4 family    residential properties:
Current	$	6,358	$	22,887	$	7,127	$	5,271	$	4,798	$	10,367	$	404,022	$	460,830
Past due 30-89 days		—		152		135		2		42		593		2,046		2,970
Past due 90 days or more		—		—		—		—		12		472		304		788
Nonaccrual		—		149		24		4		18		841		2,876		3,912
Total		6,358		23,188		7,286		5,277		4,870		12,273		409,248		468,500
Current period gross    charge-offs		—		—		5		—		1		6		22		34
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	—	$	15	$	—	$	—	$	—	$	—	$	15
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		15		—		—		—		—		15
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other real estate secured:
Current	$	—	$	—	$	—	$	86	$	—	$	84	$	—	$	170
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		—		86		—		84		—		170
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of March 31, 2023	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	97,917	$	908,617	$	553,441	$	195,241	$	107,846	$	328,376	$	—	$	2,191,438
Past due 30-89 days		—		2,997		3,303		1,131		239		1,219		—		8,889
Past due 90 days or more		—		380		225		60		114		173		—		952
Nonaccrual		—		3,798		6,291		3,466		2,111		9,583		—		25,249
Total		97,917		915,792		563,260		199,898		110,310		339,351		—		2,226,528
Current period gross    charge-offs		294		—		—		—		—		—		—		294
Consumer loans:
Current	$	19,717	$	56,948	$	21,458	$	7,526	$	2,028	$	1,216	$	55,435	$	164,328
Past due 30-89 days		467		376		179		23		25		9		533		1,612
Past due 90 days or more		18		20		5		—		—		—		243		286
Nonaccrual		—		125		48		21		—		—		44		238
Total		20,202		57,469		21,690		7,570		2,053		1,225		56,255		166,464
Current period gross    charge-offs		1,373		177		75		32		1		1		496		2,155
Total consumer LHFI	$	129,632	$	1,061,525	$	614,232	$	216,118	$	118,911	$	355,822	$	465,503	$	2,961,743
Total consumer LHFI    gross charge-offs	$	1,667	$	177	$	80	$	32	$	2	$	7	$	518	$	2,483
Total LHFI	$	744,737	$	4,086,788	$	2,385,101	$	1,611,584	$	781,457	$	1,367,597	$	1,519,931	$	12,497,195
Total current period    gross charge-offs	$	1,667	$	385	$	281	$	90	$	2	$	46	$	525	$	2,996

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of December 31, 2022	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	363,824	$	119,727	$	29,632	$	3,405	$	1,016	$	2,364	$	64,953	$	584,921
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		146		199		—		1,415		—		—		44		1,804
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		363,970		119,926		29,632		4,820		1,016		2,406		64,997		586,767
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	41,996	$	33,346	$	17,215	$	9,341	$	6,798	$	2,870	$	12,209	$	123,775
Special Mention - RR 7		29		64		17		—		—		—		—		110
Substandard - RR 8		686		31		75		88		220		285		—		1,385
Doubtful - RR 9		15		—		—		—		—		—		—		15
Total		42,726		33,441		17,307		9,429		7,018		3,155		12,209		125,285
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	889,556	$	657,242	$	603,515	$	457,163	$	205,425	$	281,828	$	130,052	$	3,224,781
Special Mention - RR 7		10,284		—		—		271		—		—		—		10,555
Substandard - RR 8		12,034		1,066		9,457		905		706		18,488		693		43,349
Doubtful - RR 9		34		—		—		77		—		18		—		129
Total		911,908		658,308		612,972		458,416		206,131		300,334		130,745		3,278,814
Other real estate secured:
Pass - RR 1 through RR 6	$	293,051	$	156,386	$	143,114	$	107,827	$	11,297	$	17,626	$	12,516	$	741,817
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		30		—		309		—		5		68		126		538
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		293,081		156,386		143,423		107,827		11,302		17,694		12,642		742,355

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of December 31, 2022	Commercial LHFI
Other loans secured by real    estate:
Other construction
Pass - RR 1 through RR 6	$	372,981	$	306,904	$	340,388	$	833	$	—	$	—	$	200	$	1,021,306
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		7,620		—		—		—		—		—		7,620
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		372,981		314,524		340,388		833		—		—		200		1,028,926
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	673,848	$	261,962	$	120,123	$	44,994	$	14,265	$	69,078	$	577,749	$	1,762,019
Special Mention - RR 7		—		—		12,421		—		—		—		6,454		18,875
Substandard - RR 8		6,973		9,845		2,170		312		74		—		20,625		39,999
Doubtful - RR 9		240		53		10		4		35		—		24		366
Total		681,061		271,860		134,724		45,310		14,374		69,078		604,852		1,821,259
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	393,345	$	223,302	$	123,350	$	39,031	$	18,876	$	421,588	$	1,671	$	1,221,163
Special Mention - RR 7		—		—		—		—		—		2,700		—		2,700
Substandard - RR 8		—		—		—		—		—		—		—		—
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		393,345		223,302		123,350		39,031		18,876		424,288		1,671		1,223,863
Other commercial loans:
Pass - RR 1 through RR 6	$	88,763	$	40,006	$	28,239	$	37,607	$	6,424	$	10,829	$	244,882	$	456,750
Special Mention - RR 7		879		—		—		—		—		—		—		879
Substandard - RR 8		3,728		98		—		—		16		1,134		9,301		14,277
Doubtful - RR 9		24		—		—		—		—		—		—		24
Total		93,394		40,104		28,239		37,607		6,440		11,963		254,183		471,930
Total commercial    LHFI	$	3,152,466	$	1,817,851	$	1,430,035	$	703,273	$	265,157	$	828,918	$	1,081,499	$	9,279,199

	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of December 31, 2022	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	62,049	$	32,867	$	3,304	$	1,759	$	1,679	$	1,915	$	—	$	103,573
Past due 30-89 days		—		150		—		36		15		9		—		210
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		58		—		—		—		8		—		66
Total		62,049		33,075		3,304		1,795		1,694		1,932		—		103,849
Other secured by 1-4 family    residential properties:
Current	$	25,402	$	7,983	$	5,389	$	4,894	$	3,701	$	7,252	$	403,123	$	457,744
Past due 30-89 days		19		35		15		134		5		286		3,197		3,691
Past due 90 days or more		—		—		—		1		—		—		452		453
Nonaccrual		88		24		4		20		7		454		3,020		3,617
Total		25,509		8,042		5,408		5,049		3,713		7,992		409,792		465,505
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	16	$	—	$	—	$	—	$	—	$	—	$	16
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		16		—		—		—		—		—		16
Other real estate secured:
Current	$	—	$	—	$	89	$	—	$	5	$	89	$	—	$	183
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		89		—		5		89		—		183
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	939,511	$	559,804	$	198,769	$	109,466	$	80,249	$	262,196	$	—	$	2,149,995
Past due 30-89 days		3,967		3,752		2,119		425		—		1,906		—		12,169
Past due 90 days or more		835		777		272		—		134		1,100		—		3,118
Nonaccrual		2,363		4,180		3,275		1,896		2,028		6,033		—		19,775
Total		946,676		568,513		204,435		111,787		82,411		271,235		—		2,185,057
Consumer loans:
Current	$	70,858	$	25,771	$	9,514	$	2,509	$	1,513	$	295	$	56,508	$	166,968
Past due 30-89 days		1,431		238		159		8		23		10		946		2,815
Past due 90 days or more		28		12		7		1		2		—		216		266
Nonaccrual		79		41		19		17		4		—		21		181
Total		72,396		26,062		9,699		2,535		1,542		305		57,691		170,230
Total consumer LHFI	$	1,106,630	$	635,708	$	222,935	$	121,166	$	89,365	$	281,553	$	467,483	$	2,924,840
Total LHFI	$	4,259,096	$	2,453,559	$	1,652,970	$	824,439	$	354,522	$	1,110,471	$	1,548,982	$	12,204,039

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
		Equipment finance loans	WARM	Southern Unemployment, Southern GDP
		Credit cards	WARM	Trustmark call report data
		Equipment finance leases	WARM	Southern Unemployment, Southern GDP
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, 2023 and December 31, 2022 ($ in thousands):

	March 31, 2023
	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	$	113	$	13,147	$	13,260	$	1,540		680,674	$	682,214
Other secured by 1-4 family residential    properties		—		11,918		11,918		473		595,047		595,520
Secured by nonfarm, nonresidential    properties		—		18,640		18,640		4,168		3,371,411		3,375,579
Other real estate secured		—		2,362		2,362		—		847,527		847,527
Other loans secured by real estate:
Other construction		7,620		6,850		14,470		7,620		1,033,938		1,041,558
Secured by 1-4 family residential    properties		—		26,156		26,156		1,672		2,224,856		2,226,528
Commercial and industrial loans		9,290		14,172		23,462		23,501		1,890,636		1,914,137
Consumer loans		—		5,532		5,532		—		166,464		166,464
State and other political subdivision loans		—		729		729		—		1,193,727		1,193,727
Other commercial loans		879		4,831		5,710		879		453,062		453,941
Total	$	17,902	$	104,337	$	122,239	$	39,853	$	12,457,342	$	12,497,195

	December 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	$	121	$	12,707	$	12,828	$	1,558	$	689,058	$	690,616
Other secured by 1-4 family residential    properties		—		12,374		12,374		482		590,308		590,790
Secured by nonfarm, nonresidential    properties		—		19,488		19,488		4,841		3,273,989		3,278,830
Other real estate secured		—		4,743		4,743		—		742,538		742,538
Other loans secured by real estate:
Other construction		7,620		7,512		15,132		7,620		1,021,306		1,028,926
Secured by 1-4 family residential    properties		—		21,185		21,185		1,193		2,183,864		2,185,057
Commercial and industrial loans		9,946		13,194		23,140		24,594		1,796,665		1,821,259
Consumer loans		—		5,792		5,792		—		170,230		170,230
State and other political subdivision loans		—		885		885		—		1,223,863		1,223,863
Other commercial loans		—		4,647		4,647		—		471,930		471,930
Total	$	17,687	$	102,527	$	120,214	$	40,288	$	12,163,751	$	12,204,039

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

	Three Months Ended March 31,
	2023			2022
Balance at beginning of period	$	120,214		$	99,457
Loans charged-off		(2,996	)		(2,242	)
Recoveries		1,777			2,379
Net (charge-offs) recoveries		(1,219	)		137
PCL, LHFI		3,244			(860	)
Balance at end of period	$	122,239		$	98,734

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

	Three Months Ended March 31, 2023
	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	$	12,828	$	(14	)	$	8	$	438		$	13,260
Other secured by 1-4 family residential properties		12,374		(34	)		47		(469	)		11,918
Secured by nonfarm, nonresidential properties		19,488		(28	)		96		(916	)		18,640
Other real estate secured		4,743		—			3		(2,384	)		2,362
Other loans secured by real estate:
Other construction		15,132		—			30		(692	)		14,470
Secured by 1-4 family residential properties		21,185		(294	)		6		5,259			26,156
Commercial and industrial loans		23,140		(471	)		270		523			23,462
Consumer loans		5,792		(2,155	)		1,317		578			5,532
State and other political subdivision loans		885		—			—		(156	)		729
Other commercial loans		4,647		—			—		1,063			5,710
Total	$	120,214	$	(2,996	)	$	1,777	$	3,244		$	122,239

The increases in the PCL, LHFI for the three months ended March 31, 2023 were primarily attributable to loan growth and the Nature and Volume of Portfolio qualitative factor.

The PCL, LHFI for the secured by nonfarm, nonresidential properties portfolio and the other real estate secured portfolio decreased $3.3 million during the three months ended March 31, 2023 primarily due to improvements in the macroeconomic forecast 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.

	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.