LHFI and ACL, LHFI (Tables)

6 Months Ended

Jun. 30, 2023

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

Loan Portfolio Held for Investment

At June 30, 2023 and December 31, 2022, LHFI consisted of the following ($ in thousands):

	June 30, 2023		December 31, 2022
Loans secured by real estate:
Construction, land development and other land	$	649,336	$	690,616
Other secured by 1-4 family residential properties		592,289		590,790
Secured by nonfarm, nonresidential properties		3,471,728		3,278,830
Other real estate secured		954,410		742,538
Other loans secured by real estate:
Other construction		1,073,321		1,028,926
Secured by 1-4 family residential properties		2,261,893		2,185,057
Commercial and industrial loans		1,883,480		1,821,259
Consumer loans		167,540		170,230
State and other political subdivision loans		1,111,710		1,223,863
Other commercial loans		448,260		471,930
LHFI		12,613,967		12,204,039
Less ACL		129,298		120,214
Net LHFI	$	12,484,669	$	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 June 30, 2023 and December 31, 2022 ($ in thousands):

	June 30, 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	$	108	$	2,596	$	—
Other secured by 1-4 family residential properties		2,115		5,557		661
Secured by nonfarm, nonresidential properties		4,084		7,232		—
Other real estate secured		—		216		—
Other loans secured by real estate:
Other construction		—		7,620		—
Secured by 1-4 family residential properties		—		26,587		2,907
Commercial and industrial loans		12,875		23,686		84
Consumer loans		—		232		231
Other commercial loans		—		1,301		28
Total	$	19,182	$	75,027	$	3,911

	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 June 30, 2023 and December 31, 2022 ($ in thousands):

	June 30, 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	$	1,665	$	166	$	1,484	$	3,315	$	646,021	$	649,336
Other secured by 1-4 family residential    properties		4,190		1,145		1,817		7,152		585,137		592,289
Secured by nonfarm, nonresidential    properties		1,073		1,021		1,435		3,529		3,468,199		3,471,728
Other real estate secured		—		119		—		119		954,291		954,410
Other loans secured by real estate:
Other construction		—		—		7,620		7,620		1,065,701		1,073,321
Secured by 1-4 family residential properties		11,627		7,058		11,314		29,999		2,231,894		2,261,893
Commercial and industrial loans		1,505		1,529		420		3,454		1,880,026		1,883,480
Consumer loans		1,952		457		281		2,690		164,850		167,540
State and other political subdivision loans		77		—		—		77		1,111,633		1,111,710
Other commercial loans		480		124		—		604		447,656		448,260
Total	$	22,569	$	11,619	$	24,371	$	58,559	$	12,555,408	$	12,613,967

	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 tables present the amortized cost of LHFI at the end of each of the periods presented of loans modified to borrowers experiencing financial difficulty disaggregated by class of loan and type of modification ($ 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:

	Three Months Ended June 30, 2023
	Payment Concession		Term Extension		Total		% of Total Class of Loan
Loans secured by real estate:
Other secured by 1-4 family residential properties	$	—	$	401	$	401		0.07	%
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		276		276		0.01	%
Commercial and industrial loans		255		—		255		0.01	%
Consumer loans		—		42		42		0.03	%
Other commercial loans		117		31		148		0.03	%
Total	$	372	$	750	$	1,122		0.01	%

	Six Months Ended June 30, 2023
	Payment Concession		Term Extension		Total		% of Total Class of Loan
Loans secured by real estate:
Other secured by 1-4 family residential properties	$	—	$	401	$	401		0.07	%
Secured by nonfarm, nonresidential properties		—		384		384		0.01	%
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		768		768		0.03	%
Commercial and industrial loans		255		—		255		0.01	%
Consumer loans		—		42		42		0.03	%
Other commercial loans		117		31		148		0.03	%
Total	$	372	$	1,626	$	1,998		0.02	%

Troubled debt restructurings on financial effect

The following tables detail the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods presented:

	Three Months Ended June 30, 2023
	Financial Effect
	Payment Concessions	Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties		Modified lines of credit to amortize over a twenty-four month term
Other loans secured by real estate:
Secured by 1-4 family residential properties		Extended amortization with term adjusted by weighted-average 2.3 years
Commercial and industrial loans	Six month payment deferrals
Consumer loans		Bankruptcies extended amortization with term adjusted by weighted average 1.3 years reducing borrower payment
Other commercial loans	Six month payment deferrals	One loan renewed and extended maturity by seven months

	Six Months Ended June 30, 2023
	Financial Effect
	Payment Concessions	Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties		Modified lines of credit to amortize over a twenty-four month term
Secured by nonfarm, nonresidential properties		One loan renewed and extended maturity by six months
Other loans secured by real estate:
Secured by 1-4 family residential properties		Extended amortization with term adjusted by weighted-average 1.8 years
Commercial and industrial loans	Six month payment deferrals
Consumer loans		Bankruptcies extended amortization with term adjusted by weighted average 1.3 years reducing borrower payment
Other commercial loans	Six month payment deferral	One loan renewed and extended maturity by seven months

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

The following tables provide details of the performance of such LHFI that have been modified during the periods presented ($ in thousands):

	Three Months Ended June 30, 2023
	Past Due
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total
Loans secured by real estate:
Other secured by 1-4 family residential    properties	$	38	$	19	$	—	$	57	$	344	$	401
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		—		—		—		276		276
Commercial and industrial loans		—		—		—		—		255		255
Consumer loans		22		—		—		22		20		42
Other commercial loans		—		—		—		—		148		148
Total	$	60	$	19	$	—	$	79	$	1,043	$	1,122

	Six Months Ended June 30, 2023
	Past Due
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total
Loans secured by real estate:
Other secured by 1-4 family residential    properties	$	38	$	19	$	—	$	57	$	344	$	401
Secured by nonfarm, nonresidential    properties		—		—		—		—		384		384
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		—		—		—		768		768
Commercial and industrial loans		—		—		—		—		255		255
Consumer loans		22		—		—		22		20		42
Other commercial loans		—		—		—		—		148		148
Total	$	60	$	19	$	—	$	79	$	1,919	$	1,998

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 June 30, 2023 and December 31, 2022 ($ in thousands):

	June 30, 2023
	Real Estate		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and    other land	$	1,529	$	—	$	—	$	1,529
Other secured by 1-4 family    residential properties		459		—		—		459
Secured by nonfarm, nonresidential    properties		4,084		—		—		4,084
Other loans secured by real estate:
Other construction		7,620		—		—		7,620
Secured by 1-4 family residential    properties		1,656		—		—		1,656
Commercial and industrial loans		39		7		21,600		21,646
Other commercial loans		—		—		968		968
Total	$	15,387	$	7	$	22,568	$	37,962

	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 June 30, 2023 and December 31, 2022 ($ in thousands):

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of June 30, 2023	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	185,143	$	198,373	$	82,919	$	17,158	$	2,509	$	2,515	$	49,243	$	537,860
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		2,562		1,518		—		—		1,407		—		—		5,487
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		187,705		199,891		82,919		17,158		3,916		2,557		49,243		543,389
Current period gross    charge-offs		—		4		10		—		—		—		—		14
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	15,738	$	35,621	$	29,327	$	15,267	$	8,544	$	6,083	$	11,087	$	121,667
Special Mention - RR 7		—		29		56		13		—		—		—		98
Substandard - RR 8		340		697		265		66		84		293		102		1,847
Doubtful - RR 9		—		11		—		—		—		—		—		11
Total		16,078		36,358		29,648		15,346		8,628		6,376		11,189		123,623
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	349,289	$	858,477	$	590,261	$	654,335	$	392,782	$	429,312	$	129,449	$	3,403,905
Special Mention - RR 7		9,911		—		20,000		—		—		—		—		29,911
Substandard - RR 8		13,768		1,945		1,867		450		8,758		10,941		64		37,793
Doubtful - RR 9		28		—		—		—		66		15		—		109
Total		372,996		860,422		612,128		654,785		401,606		440,268		129,513		3,471,718
Current period gross    charge-offs		—		39		—		—		19		28		—		86
Other real estate secured:
Pass - RR 1 through RR 6	$	50,962	$	290,528	$	240,639	$	252,239	$	93,669	$	13,258	$	11,937	$	953,232
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		136		397		299		—		55		95		982
Doubtful - RR 9		42		—		—		—		—		—		—		42
Total		51,004		290,664		241,036		252,538		93,669		13,313		12,032		954,256
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of June 30, 2023	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	138,651	$	463,243	$	329,585	$	134,222	$	—	$	—	$	—	$	1,065,701
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		7,620		—		—		—		—		7,620
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		138,651		463,243		337,205		134,222		—		—		—		1,073,321
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	334,199	$	667,426	$	205,046	$	78,509	$	38,067	$	51,223	$	458,411	$	1,832,881
Special Mention - RR 7		—		8		206		10,227		22		—		6,177		16,640
Substandard - RR 8		5,026		1,827		8,928		1,470		132		36		16,278		33,697
Doubtful - RR 9		51		96		81		2		—		30		2		262
Total		339,276		669,357		214,261		90,208		38,221		51,289		480,868		1,883,480
Current period gross    charge-offs		—		309		393		128		62		28		7		927
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	41,285	$	310,209	$	194,376	$	113,400	$	37,116	$	407,691	$	7,633	$	1,111,710
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		—		—		—		—		—		—
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		41,285		310,209		194,376		113,400		37,116		407,691		7,633		1,111,710
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other commercial loans:
Pass - RR 1 through RR 6	$	93,323	$	41,548	$	30,223	$	24,316	$	33,989	$	20,435	$	189,650	$	433,484
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		46		3,403		54		—		—		1,072		10,109		14,684
Doubtful - RR 9		92		—		—		—		—		—		—		92
Total		93,461		44,951		30,277		24,316		33,989		21,507		199,759		448,260
Current period gross    charge-offs		—		—		—		23		—		—		—		23
Total commercial    LHFI	$	1,240,456	$	2,875,095	$	1,741,850	$	1,301,973	$	617,145	$	943,001	$	890,237	$	9,609,757
Total commercial LHFI    gross charge-offs	$	—	$	352	$	403	$	151	$	81	$	56	$	7	$	1,050

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of June 30, 2023	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	18,241	$	65,224	$	15,710	$	2,016	$	1,407	$	2,381	$	—	$	104,979
Past due 30-89 days		—		350		167		313		29		14		—		873
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		54		—		35		6		—		95
Total		18,241		65,574		15,931		2,329		1,471		2,401		—		105,947
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other secured by 1-4 family    residential properties:
Current	$	13,826	$	17,954	$	6,149	$	4,842	$	4,652	$	9,691	$	401,955	$	459,069
Past due 30-89 days		—		330		74		11		42		734		2,832		4,023
Past due 90 days or more		—		6		—		—		—		90		565		661
Nonaccrual		60		155		61		3		16		1,110		3,508		4,913
Total		13,886		18,445		6,284		4,856		4,710		11,625		408,860		468,666
Current period gross    charge-offs		—		77		5		—		10		6		22		120
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	10
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		10		—		—		—		—		10
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other real estate secured:
Current	$	—	$	—	$	—	$	83	$	—	$	71	$	—	$	154
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		—		83		—		71		—		154
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of June 30, 2023	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	182,734	$	900,728	$	541,023	$	189,548	$	103,398	$	299,384	$	—	$	2,216,815
Past due 30-89 days		—		7,295		4,588		2,127		271		1,305		—		15,586
Past due 90 days or more		—		1,424		896		163		126		296		—		2,905
Nonaccrual		—		4,981		7,058		3,916		1,720		8,912		—		26,587
Total		182,734		914,428		553,565		195,754		105,515		309,897		—		2,261,893
Current period gross    charge-offs		—		268		25		83		—		79		—		455
Consumer loans:
Current	$	37,331	$	47,230	$	17,702	$	4,912	$	1,612	$	758	$	55,139	$	164,684
Past due 30-89 days		578		494		84		40		24		13		1,131		2,364
Past due 90 days or more		22		17		5		3		—		—		212		259
Nonaccrual		—		128		49		18		—		—		38		233
Total		37,931		47,869		17,840		4,973		1,636		771		56,520		167,540
Current period gross    charge-offs		2,771		301		117		34		1		1		919		4,144
Total consumer LHFI	$	252,792	$	1,046,316	$	593,630	$	207,995	$	113,332	$	324,765	$	465,380	$	3,004,210
Total consumer LHFI    gross charge-offs	$	2,771	$	646	$	147	$	117	$	11	$	86	$	941	$	4,719
Total LHFI	$	1,493,248	$	3,921,411	$	2,335,480	$	1,509,968	$	730,477	$	1,267,766	$	1,355,617	$	12,613,967
Total current period    gross charge-offs	$	2,771	$	998	$	550	$	268	$	92	$	142	$	948	$	5,769

	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 June 30, 2023 and December 31, 2022 ($ in thousands):

	June 30, 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	$	206	$	15,137	$	15,343	$	1,529		647,807	$	649,336
Other secured by 1-4 family residential    properties		—		12,173		12,173		459		591,830		592,289
Secured by nonfarm, nonresidential    properties		—		20,376		20,376		4,084		3,467,644		3,471,728
Other real estate secured		—		3,481		3,481		—		954,410		954,410
Other loans secured by real estate:
Other construction		7,620		6,757		14,377		7,620		1,065,701		1,073,321
Secured by 1-4 family residential    properties		—		28,555		28,555		1,656		2,260,237		2,261,893
Commercial and industrial loans		8,770		14,400		23,170		21,646		1,861,834		1,883,480
Consumer loans		—		5,540		5,540		—		167,540		167,540
State and other political subdivision loans		—		676		676		—		1,111,710		1,111,710
Other commercial loans		968		4,639		5,607		968		447,292		448,260
Total	$	17,564	$	111,734	$	129,298	$	37,962	$	12,576,005	$	12,613,967

	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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Balance at beginning of period	$	122,239		$	98,734		$	120,214		$	99,457
Loans charged-off		(2,773	)		(2,277	)		(5,769	)		(4,519	)
Recoveries		1,621			3,967			3,398			6,346
Net (charge-offs) recoveries		(1,152	)		1,690			(2,371	)		1,827
PCL, LHFI		8,211			2,716			11,455			1,856
Balance at end of period	$	129,298		$	103,140		$	129,298		$	103,140

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

	Three Months Ended June 30, 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	$	13,260	$	—		$	64	$	2,019		$	15,343
Other secured by 1-4 family residential properties		11,918		(86	)		75		266			12,173
Secured by nonfarm, nonresidential properties		18,640		(58	)		10		1,784			20,376
Other real estate secured		2,362		—			2		1,117			3,481
Other loans secured by real estate:
Other construction		14,470		—			18		(111	)		14,377
Secured by 1-4 family residential properties		26,156		(161	)		14		2,546			28,555
Commercial and industrial loans		23,462		(456	)		217		(53	)		23,170
Consumer loans		5,532		(1,989	)		1,221		776			5,540
State and other political subdivision loans		729		—			—		(53	)		676
Other commercial loans		5,710		(23	)		—		(80	)		5,607
Total	$	122,239	$	(2,773	)	$	1,621	$	8,211		$	129,298

The increases in the PCL, LHFI for the three months ended June 30, 2023 were primarily attributable to extended maturities on the secured by 1-4 family residential properties portfolio resulting from lower prepayment speeds, the weakening macroeconomic forecasts and loan growth.

	Three Months Ended June 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	$	7,351	$	(6	)	$	344	$	(388	)	$	7,301
Other secured by 1-4 family residential properties		9,867		(49	)		206		14			10,038
Secured by nonfarm, nonresidential properties		32,030		—			1,474		(3,769	)		29,735
Other real estate secured		3,640		(131	)		4		(216	)		3,297
Other loans secured by real estate:
Other construction		13,947		—			201		249			14,397
Secured by 1-4 family residential properties		5,628		(79	)		4		6,697			12,250
Commercial and industrial loans		14,951		(90	)		203		(961	)		14,103
Consumer loans		4,872		(357	)		452		172			5,139
State and other political subdivision loans		2,371		—			—		(454	)		1,917
Other commercial loans		4,077		(1,565	)		1,079		1,372			4,963
Total	$	98,734	$	(2,277	)	$	3,967	$	2,716		$	103,140

The decreases in the PCL, LHFI for the three months ended June 30, 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.

The PCL, LHFI for the secured by 1-4 family residential properties portfolio increased $6.7 million during the three months ended June 30, 2022 primarily due to loan growth and the nature and volume of the portfolio. For the three months ended June 30, 2022, the PCL, LHFI for the other commercial loan portfolio increased $1.4 million primarily due to an increase in balances within the portfolio.

	Six Months Ended June 30, 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	)	$	72	$	2,457		$	15,343
Other secured by 1-4 family residential properties		12,374		(120	)		122		(203	)		12,173
Secured by nonfarm, nonresidential properties		19,488		(86	)		106		868			20,376
Other real estate secured		4,743		—			5		(1,267	)		3,481
Other loans secured by real estate:
Other construction		15,132		—			48		(803	)		14,377
Secured by 1-4 family residential properties		21,185		(455	)		20		7,805			28,555
Commercial and industrial loans		23,140		(927	)		487		470			23,170
Consumer loans		5,792		(4,144	)		2,538		1,354			5,540
State and other political subdivision loans		885		—			—		(209	)		676
Other commercial loans		4,647		(23	)		—		983			5,607
Total	$	120,214	$	(5,769	)	$	3,398	$	11,455		$	129,298

The increases in the PCL, LHFI for the six months ended June 30, 2023 were primarily attributable to loan growth and the nature and volume of portfolio qualitative factor.

The PCL, LHFI for the other construction portfolio and the other real estate secured portfolio decreased $2.1 million during the six months ended June 30, 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.

	Six Months Ended June 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	$	(34	)	$	1,187	$	69		$	7,301
Other secured by 1-4 family residential properties		10,310		(62	)		295		(505	)		10,038
Secured by nonfarm, nonresidential properties		37,912		—			1,501		(9,678	)		29,735
Other real estate secured		4,713		(131	)		7		(1,292	)		3,297
Other loans secured by real estate:
Other construction		5,968		—			204		8,225			14,397
Secured by 1-4 family residential properties		2,706		(79	)		10		9,613			12,250
Commercial and industrial loans		18,939		(375	)		303		(4,764	)		14,103
Consumer loans		4,774		(936	)		831		470			5,139
State and other political subdivision loans		2,708		—			—		(791	)		1,917
Other commercial loans		5,348		(2,902	)		2,008		509			4,963
Total	$	99,457	$	(4,519	)	$	6,346	$	1,856		$	103,140

The decreases in the PCL, LHFI for the six months ended June 30, 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 six months ended June 30, 2022, the PCL, LHFI for the other construction loan portfolio increased $8.2 million primarily due to specific reserves on individually analyzed credits. The PCL, LHFI for the secured by 1-4 family residential properties portfolio increased $9.6 million during the six months ended June 30, 2022 primarily due to loan growth and the nature and volume of the portfolio as well as a decrease in prepayment speeds which resulted from the rising interest-rate environment.