LHFI and ACL, LHFI (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2023

Sep. 30, 2023

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

Loan Portfolio Held for Investment

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

	September 30, 2023		December 31, 2022
Loans secured by real estate:
Construction, land development and other land	$	655,381	$	690,616
Other secured by 1-4 family residential properties		603,818		590,790
Secured by nonfarm, nonresidential properties		3,569,671		3,278,830
Other real estate secured		1,218,499		742,538
Other loans secured by real estate:
Other construction		953,945		1,028,926
Secured by 1-4 family residential properties		2,289,788		2,185,057
Commercial and industrial loans		1,828,924		1,821,259
Consumer loans		165,556		170,230
State and other political subdivision loans		1,056,569		1,223,863
Other commercial loans		468,108		471,930
LHFI		12,810,259		12,204,039
Less ACL		134,031		120,214
Net LHFI	$	12,676,228	$	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 September 30, 2023 and December 31, 2022 ($ in thousands):

	September 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	$	—	$	1,190	$	—
Other secured by 1-4 family residential properties		3,801		6,339		727
Secured by nonfarm, nonresidential properties		20,973		24,009		—
Other real estate secured		—		111		—
Other loans secured by real estate:
Other construction		—		63		—
Secured by 1-4 family residential properties		—		34,655		2,558
Commercial and industrial loans		88		10,575		39
Consumer loans		—		254		480
Other commercial loans		—		13,703		—
Total	$	24,862	$	90,899	$	3,804

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

	September 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	$	481	$	241	$	508	$	1,230	$	654,151	$	655,381
Other secured by 1-4 family residential    properties		6,527		1,460		2,007		9,994		593,824		603,818
Secured by nonfarm, nonresidential    properties		1,120		57		1,155		2,332		3,567,339		3,569,671
Other real estate secured		224		—		42		266		1,218,233		1,218,499
Other loans secured by real estate:
Other construction		—		—		—		—		953,945		953,945
Secured by 1-4 family residential properties		17,157		11,471		16,575		45,203		2,244,585		2,289,788
Commercial and industrial loans		5,413		1,156		1,040		7,609		1,821,315		1,828,924
Consumer loans		1,731		688		480		2,899		162,657		165,556
State and other political subdivision loans		110		—		—		110		1,056,459		1,056,569
Other commercial loans		1,164		27		—		1,191		466,917		468,108
Total	$	33,927	$	15,100	$	21,807	$	70,834	$	12,739,425	$	12,810,259

	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 September 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	$	—	$	96	$	96		0.02	%
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		346		346		0.02	%
Total	$	—	$	442	$	442		0.00	%

	Nine Months Ended September 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	$	—	$	494	$	494		0.08	%
Secured by nonfarm, nonresidential properties		—		370		370		0.01	%
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		912		912		0.04	%
Commercial and industrial loans		255		—		255		0.01	%
Consumer loans		—		40		40		0.02	%
Other commercial loans		116		31		147		0.03	%
Total	$	371	$	1,847	$	2,218		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 September 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 12 month and 24 month terms
Other loans secured by real estate:
Secured by 1-4 family residential properties		Extended amortization on loans with term adjusted by weighted-average 10.6 years

	Nine Months Ended September 30, 2023
	Financial Effect
	Payment Concessions	Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties		Modifed lines of credit to amortize over 12 month and 24 month terms
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 3.2 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 September 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	$	—	$	—	$	—	$	—	$	96	$	96
Other loans secured by real estate:
Secured by 1-4 family residential properties		—		—		—		—		346		346
Total	$	—	$	—	$	—	$	—	$	442	$	442

	Nine Months Ended September 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	$	272	$	—	$	—	$	272	$	222	$	494
Secured by nonfarm, nonresidential    properties		—		—		—		—		370		370
Other loans secured by real estate:
Secured by 1-4 family residential properties		170		—		—		170		742		912
Commercial and industrial loans		—		—		—		—		255		255
Consumer loans		20		—		—		20		20		40
Other commercial loans		—		—		—		—		147		147
Total	$	462	$	—	$	—	$	462	$	1,756	$	2,218

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

	September 30, 2023
	Real Estate		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Other secured by 1-4 family    residential properties	$	980	$	—	$	—	$	—	$	980
Secured by nonfarm, nonresidential    properties		20,973		—		—		—		20,973
Other loans secured by real estate:
Secured by 1-4 family residential    properties		2,822		—		—		—		2,822
Commercial and industrial loans		38		355		367		8,472		9,232
Other commercial loans		—		—		—		13,371		13,371
Total	$	24,813	$	355	$	367	$	21,843	$	47,378

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

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of September 30, 2023	Commercial LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Pass - RR 1 through RR 6	$	293,087	$	138,233	$	51,342	$	16,250	$	2,219	$	2,166	$	58,294	$	561,591
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		338		592		—		20		—		23		—		973
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		293,425		138,825		51,342		16,270		2,219		2,231		58,294		562,606
Current period gross    charge-offs		—		4		10		—		228		—		—		242
Other secured by 1-4 family    residential properties:
Pass - RR 1 through RR 6	$	28,114	$	32,346	$	27,894	$	14,821	$	8,273	$	4,298	$	9,176	$	124,922
Special Mention - RR 7		—		28		53		12		—		—		—		93
Substandard - RR 8		704		681		29		61		82		238		99		1,894
Doubtful - RR 9		—		9		—		—		—		—		—		9
Total		28,818		33,064		27,976		14,894		8,355		4,536		9,275		126,918
Current period gross    charge-offs		—		—		23		—		—		—		—		23
Secured by nonfarm,    nonresidential properties:
Pass - RR 1 through RR 6	$	441,919	$	880,761	$	599,643	$	626,109	$	387,867	$	387,001	$	129,632	$	3,452,932
Special Mention - RR 7		13,235		14,930		25,000		1,147		—		—		—		54,312
Substandard - RR 8		10,123		1,712		21,914		10,112		8,661		9,748		50		62,320
Doubtful - RR 9		24		—		—		—		60		14		—		98
Total		465,301		897,403		646,557		637,368		396,588		396,763		129,682		3,569,662
Current period gross    charge-offs		—		39		82		—		19		138		—		278
Other real estate secured:
Pass - RR 1 through RR 6	$	102,678	$	353,814	$	361,897	$	268,866	$	56,340	$	11,711	$	11,631	$	1,166,937
Special Mention - RR 7		126		14,867		—		—		35,911		—		—		50,904
Substandard - RR 8		—		131		—		294		—		47		—		472
Doubtful - RR 9		42		—		—		—		—		—		—		42
Total		102,846		368,812		361,897		269,160		92,251		11,758		11,631		1,218,355
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of September 30, 2023	Commercial LHFI
Other loans secured by real    estate:
Other construction:
Pass - RR 1 through RR 6	$	175,054	$	529,544	$	180,594	$	68,641	$	—	$	—	$	49	$	953,882
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		63		—		—		—		—		—		—		63
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		175,117		529,544		180,594		68,641		—		—		49		953,945
Current period gross    charge-offs		61		3,392		—		—		—		—		—		3,453
Commercial and industrial    loans:
Pass - RR 1 through RR 6	$	410,007	$	529,180	$	181,582	$	74,467	$	34,800	$	46,348	$	489,700	$	1,766,084
Special Mention - RR 7		—		7,048		128		7		—		—		1,963		9,146
Substandard - RR 8		5,842		4,862		8,265		12,055		154		88		22,238		53,504
Doubtful - RR 9		3		84		38		—		—		63		2		190
Total		415,852		541,174		190,013		86,529		34,954		46,499		513,903		1,828,924
Current period gross    charge-offs		28		536		651		138		94		108		7		1,562
State and other political    subdivision loans:
Pass - RR 1 through RR 6	$	74,824	$	261,922	$	182,951	$	106,513	$	34,148	$	390,838	$	5,373	$	1,056,569
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		—		—		—		—		—		—		—		—
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		74,824		261,922		182,951		106,513		34,148		390,838		5,373		1,056,569
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other commercial loans:
Pass - RR 1 through RR 6	$	142,805	$	35,989	$	28,920	$	22,720	$	33,492	$	9,638	$	179,719	$	453,283
Special Mention - RR 7		—		—		—		—		—		—		20		20
Substandard - RR 8		106		3,401		48		—		—		1,050		10,108		14,713
Doubtful - RR 9		92		—		—		—		—		—		—		92
Total		143,003		39,390		28,968		22,720		33,492		10,688		189,847		468,108
Current period gross    charge-offs		—		6		—		26		—		—		—		32
Total commercial    LHFI	$	1,699,186	$	2,810,134	$	1,670,298	$	1,222,095	$	602,007	$	863,313	$	918,054	$	9,785,087
Total commercial LHFI    gross charge-offs	$	89	$	3,977	$	766	$	164	$	341	$	246	$	7	$	5,590

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of September 30, 2023	Consumer LHFI
Loans secured by real estate:
Construction, land    development and other    land:
Current	$	37,611	$	42,200	$	7,116	$	1,754	$	1,176	$	2,185	$	166	$	92,208
Past due 30-89 days		—		313		—		—		33		17		—		363
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		200		—		—		4		—		204
Total		37,611		42,513		7,316		1,754		1,209		2,206		166		92,775
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other secured by 1-4 family    residential properties:
Current	$	20,453	$	13,762	$	5,905	$	4,603	$	4,438	$	8,965	$	406,021	$	464,147
Past due 30-89 days		6		41		58		10		44		522		5,880		6,561
Past due 90 days or more		—		6		—		—		—		67		654		727
Nonaccrual		59		128		60		10		435		482		4,291		5,465
Total		20,518		13,937		6,023		4,623		4,917		10,036		416,846		476,900
Current period gross    charge-offs		—		94		5		—		10		17		81		207
Secured by nonfarm,    nonresidential properties:
Current	$	—	$	—	$	9	$	—	$	—	$	—	$	—	$	9
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		9		—		—		—		—		9
Current period gross    charge-offs		—		—		—		—		—		—		—		—
Other real estate secured:
Current	$	—	$	—	$	—	$	81	$	—	$	63	$	—	$	144
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		—		81		—		63		—		144
Current period gross    charge-offs		—		—		—		—		—		—		—		—

	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
As of September 30, 2023	Consumer LHFI
Other loans secured by real    estate:
Secured by 1-4 family    residential properties
Current	$	242,667	$	886,235	$	529,310	$	183,816	$	101,283	$	284,715	$	—	$	2,228,026
Past due 30-89 days		1,458		12,375		6,151		2,270		297		1,996		—		24,547
Past due 90 days or more		246		1,169		938		139		—		65		—		2,557
Nonaccrual		158		9,876		9,480		4,398		2,196		8,550		—		34,658
Total		244,529		909,655		545,879		190,623		103,776		295,326		—		2,289,788
Current period gross    charge-offs		1		562		156		92		—		92		—		903
Consumer loans:
Current	$	50,059	$	39,900	$	13,199	$	3,511	$	1,217	$	471	$	54,101	$	162,458
Past due 30-89 days		683		394		156		1		13		8		1,109		2,364
Past due 90 days or more		29		39		1		2		—		—		409		480
Nonaccrual		—		113		90		16		—		—		35		254
Total		50,771		40,446		13,446		3,530		1,230		479		55,654		165,556
Current period gross    charge-offs		4,389		434		146		41		1		1		1,553		6,565
Total consumer LHFI	$	353,429	$	1,006,551	$	572,673	$	200,611	$	111,132	$	308,110	$	472,666	$	3,025,172
Total consumer LHFI    gross charge-offs	$	4,390	$	1,090	$	307	$	133	$	11	$	110	$	1,634	$	7,675
Total LHFI	$	2,052,615	$	3,816,685	$	2,242,971	$	1,422,706	$	713,139	$	1,171,423	$	1,390,720	$	12,810,259
Total current period    gross charge-offs	$	4,479	$	5,067	$	1,073	$	297	$	352	$	356	$	1,641	$	13,265

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

	September 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	$	—	$	17,241	$	17,241	$	—		655,381	$	655,381
Other secured by 1-4 family residential    properties		—		12,563		12,563		980		602,838		603,818
Secured by nonfarm, nonresidential    properties		—		23,298		23,298		20,973		3,548,698		3,569,671
Other real estate secured		—		3,565		3,565		—		1,218,499		1,218,499
Other loans secured by real estate:
Other construction		—		6,306		6,306		—		953,945		953,945
Secured by 1-4 family residential    properties		—		30,144		30,144		2,822		2,286,966		2,289,788
Commercial and industrial loans		9,118		14,637		23,755		9,232		1,819,692		1,828,924
Consumer loans		—		5,804		5,804		—		165,556		165,556
State and other political subdivision loans		—		665		665		—		1,056,569		1,056,569
Other commercial loans		5,837		4,853		10,690		13,371		454,737		468,108
Total	$	14,955	$	119,076	$	134,031	$	47,378	$	12,762,881	$	12,810,259

	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 September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Balance at beginning of period	$	129,298		$	103,140		$	120,214		$	99,457
Loans charged-off		(7,496	)		(2,920	)		(13,265	)		(7,439	)
Recoveries		3,907			1,911			7,305			8,257
Net (charge-offs) recoveries		(3,589	)		(1,009	)		(5,960	)		818
PCL, LHFI		8,322			12,919			19,777			14,775
Balance at end of period	$	134,031		$	115,050		$	134,031		$	115,050

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

	Three Months Ended September 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	$	15,343	$	(228	)	$	22	$	2,104		$	17,241
Other secured by 1-4 family residential properties		12,173		(110	)		43		457			12,563
Secured by nonfarm, nonresidential properties		20,376		(192	)		2,216		898			23,298
Other real estate secured		3,481		—			—		84			3,565
Other loans secured by real estate:
Other construction		14,377		(3,453	)		15		(4,633	)		6,306
Secured by 1-4 family residential properties		28,555		(448	)		7		2,030			30,144
Commercial and industrial loans		23,170		(635	)		267		953			23,755
Consumer loans		5,540		(2,421	)		1,337		1,348			5,804
State and other political subdivision loans		676		—			—		(11	)		665
Other commercial loans		5,607		(9	)		—		5,092			10,690
Total	$	129,298	$	(7,496	)	$	3,907	$	8,322		$	134,031

The increases in the PCL, LHFI for the three months ended September 30, 2023 were primarily attributable to an individually evaluated and reserved for nonaccrual loan, loan growth, the weakening macroeconomic forecasts and the net adjustment to the qualitative factors.

The PCL, LHFI for the other construction portfolio decreased $4.6 million during the three months ended September 30, 2023 primarily due to the transfer of a fully-reserved nonaccrual loan to other real estate, net.

	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.

	Nine Months Ended September 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	$	(242	)	$	94	$	4,561		$	17,241
Other secured by 1-4 family residential properties		12,374		(230	)		165		254			12,563
Secured by nonfarm, nonresidential properties		19,488		(278	)		2,322		1,766			23,298
Other real estate secured		4,743		—			5		(1,183	)		3,565
Other loans secured by real estate:
Other construction		15,132		(3,453	)		63		(5,436	)		6,306
Secured by 1-4 family residential properties		21,185		(903	)		27		9,835			30,144
Commercial and industrial loans		23,140		(1,562	)		754		1,423			23,755
Consumer loans		5,792		(6,565	)		3,875		2,702			5,804
State and other political subdivision loans		885		—			—		(220	)		665
Other commercial loans		4,647		(32	)		—		6,075			10,690
Total	$	120,214	$	(13,265	)	$	7,305	$	19,777		$	134,031

The increases in the PCL, LHFI for the nine months ended September 30, 2023 were primarily attributable to loan growth, extended maturities on the secured by 1-4 family residential properties resulting from lower prepayment speeds, the weakening macroeconomic forecast and net adjustments to the qualitative factors.

The PCL, LHFI for the other construction portfolio decreased $5.4 million during the nine months ended September 30, 2023 primarily due to the transfer of a fully-reserved nonaccrual loan to other real estate, net. The PCL, LHFI for the other real estate secured portfolio decreased $1.2 million during the nine months ended September 30, 2023 primarily due to reductions in the pandemic qualitative factor.

	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 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.