XML 43 R31.htm IDEA: XBRL DOCUMENT

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

6 Months Ended

Jun. 30, 2020

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

At June 30, 2020 and December 31, 2019, LHFI consisted of the following ($ in thousands):

	June 30, 2020		December 31, 2019
Loans secured by real estate:
Construction, land development and other land	$	482,309	$	1,162,791
Other secured by 1-4 family residential properties		562,828		1,855,913
Secured by nonfarm, nonresidential properties		2,610,392		2,475,245
Other real estate secured		884,815		724,480
Other loans secured by real estate: (1)
Other construction		794,968		—
Secured by 1-4 family residential properties		1,250,697		—
Commercial and industrial loans		1,413,255		1,477,896
Consumer loans		164,560		175,738
State and other political subdivision loans		931,536		967,944
Other commercial loans (1)		564,446		495,621
LHFI		9,659,806		9,335,628
Less ACL		119,188		84,277
Net LHFI	$	9,540,618	$	9,251,351

(1)

In accordance with the guidance in FASB ASC Topic 326, Trustmark redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. The other loans secured by real estate portfolio segment and related loan classes were separated from the loans secured by real estate portfolio segment. The other construction loans were segregated from the construction, land development and other land loans. The other loans secured by 1-4 family residential properties were segregated from the loans secured by 1-4 family residential properties and the loans secured by 1-4 family residential properties were redefined in the other loans secured by real estate portfolio segment. Other loans were redefined as other commercial loans.

Schedule of Amortized Cost Basis of Loans on Nonaccrual Status

The following table provides the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more still accruing interest as of June 30, 2020 ($ in thousands):

	June 30, 2020
	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	$	575	$	932	$	—
Other secured by 1-4 family residential properties		496		4,441		51
Secured by nonfarm, nonresidential properties		5,389		7,883		—
Other real estate secured		63		881		—
Other loans secured by real estate:
Other construction		—		—		—
Secured by 1-4 family residential properties		1,480		12,523		528
Commercial and industrial loans		16,436		18,181		—
Consumer loans		—		120		217
State and other political subdivision loans		—		4,049		—
Other commercial loans		12		984		11
Total	$	24,451	$	49,994	$	807

Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type

The following table provides an aging analysis of the amortized cost basis of past due LHFI at June 30, 2020 ($ in thousands):

	June 30, 2020
	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	$	699	$	323	$	191	$	1,213	$	481,096	$	482,309
Other secured by 1-4 family residential properties		1,481		1,017		632		3,130		559,698		562,828
Secured by nonfarm, nonresidential properties		187		391		682		1,260		2,609,132		2,610,392
Other real estate secured		165		—		288		453		884,362		884,815
Other loans secured by real estate:
Other construction		—		—		—		—		794,968		794,968
Secured by 1-4 family residential properties		1,880		1,500		5,501		8,881		1,241,816		1,250,697
Commercial and industrial loans		594		99		2,001		2,694		1,410,561		1,413,255
Consumer loans		879		152		217		1,248		163,312		164,560
State and other political subdivision loans		—		—		177		177		931,359		931,536
Other commercial loans		351		16		446		813		563,633		564,446
Total	$	6,236	$	3,498	$	10,135	$	19,869	$	9,639,937	$	9,659,806

The following table provides an aging analysis of past due and nonaccrual LHFI by loan class at December 31, 2019 ($ in thousands):

	December 31, 2019
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	380	$	256	$	—	$	636	$	897	$	1,161,258	$	1,162,791
Secured by 1-4 family residential properties		5,254		940		211		6,405		16,810		1,832,698		1,855,913
Secured by nonfarm, nonresidential properties		1,698		—		—		1,698		7,700		2,465,847		2,475,245
Other real estate secured		8		—		—		8		1,032		723,440		724,480
Commercial and industrial loans		617		12		39		668		21,775		1,455,453		1,477,896
Consumer loans		2,208		380		392		2,980		108		172,650		175,738
State and other political subdivision loans		76		—		—		76		4,079		963,789		967,944
Other loans		152		4		—		156		825		494,640		495,621
Total	$	10,393	$	1,592	$	642	$	12,627	$	53,226	$	9,269,775	$	9,335,628

(1)	Past due 90 days or more but still accruing interest.

Impaired Financing Receivables

At December 31, 2019, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	December 31, 2019
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Recorded Investment		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	926	$	610	$	16	$	626	$	—	$	1,089
Secured by 1-4 family residential properties		6,513		2,104		3,360		5,464		35		4,713
Secured by nonfarm, nonresidential properties		7,295		1,462		5,255		6,717		2,355		8,096
Other real estate secured		69		—		68		68		—		158
Commercial and industrial loans		27,178		19,374		4,084		23,458		707		27,088
Consumer loans		22		—		21		21		—		11
State and other political subdivision loans		4,079		—		4,079		4,079		1,809		6,337
Other loans		1,207		—		784		784		553		1,033
Total	$	47,289	$	23,550	$	17,667	$	41,217	$	5,459	$	48,525

Impact of Modifications Classified as Troubled Debt Restructurings

The following table illustrates the impact of modifications classified as TDRs for the periods presented ($ in thousands):

	Three Months Ended June 30,
	2020						2019
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Other secured by 1-4 family residential properties		3	$	206	$	210		5	$	793	$	792
Secured by nonfarm, nonresidential properties		1		139		139		1		5,055		5,055
Commercial and industrial loans		—		—		—		2		113		—
Consumer loans		2		6		6		—		—		—
State and other political subdivision loans		2		3,902		3,872		—		—		—
Total		8	$	4,253	$	4,227		8	$	5,961	$	5,847

	Six Months Ended June 30,
	2020						2019
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by real estate:
Other secured by 1-4 family residential properties		8	$	707	$	711		7	$	879	$	878
Secured by nonfarm, nonresidential properties		1		139		139		1		5,055		5,055
Commercial and industrial loans		2		1,582		1,582		8		9,167		9,054
Consumer loans		6		26		26		2		30		30
State and other political subdivision loans		2		3,902		3,872		—		—		—
Total		19	$	6,356	$	6,330		18	$	15,131	$	15,017

Troubled Debt Restructuring Subsequently Defaulted

The table below includes the balances at default for TDRs modified within the last 12 months for which there was a payment default during the periods presented ($ in thousands):

	Six Months Ended June 30,
	2020				2019
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by real estate:
Other secured by 1-4 family residential properties		3	$	420		1	$	46
Secured by nonfarm, nonresidential properties		1		139		—		—
Commercial and industrial loans		1		82		10		7,957
Consumer loans		—		—		1		27
Total		5	$	641		12	$	8,030

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

The following tables detail LHFI classified as TDRs by loan class at June 30, 2020 and 2019 ($ in thousands):

	June 30, 2020
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	14	$	14
Other secured by 1-4 family residential properties		71		3,761		3,832
Secured by nonfarm, nonresidential properties		—		3,010		3,010
Commercial and industrial loans		1,500		14,487		15,987
Consumer loans		18		21		39
State and other political subdivision loans		—		3,872		3,872
Other commercial loans		—		125		125
Total TDRs	$	1,589	$	25,290	$	26,879

	June 30, 2019
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	20	$	20
Secured by 1-4 family residential properties		50		3,563		3,613
Secured by nonfarm, nonresidential properties		—		5,311		5,311
Commercial and industrial loans		14,897		11,965		26,862
Consumer loans		—		30		30
Other loans		—		510		510
Total TDRs	$	14,947	$	21,399	$	36,346

Schedule of Amortized Cost Basis of Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of June 30, 2020 ($ in thousands):

	June 30, 2020
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and other land	$	1,948	$	—	$	—	$	—	$	—	$	1,948
Other secured by 1-4 family residential properties		496		—		—		—		—		496
Secured by nonfarm, nonresidential properties		11,966		—		—		—		—		11,966
Other real estate secured		63		—		—		—		—		63
Other loans secured by real estate:
Other construction		—		—		—		—		—		—
Secured by 1-4 family residential properties		1,480		—		—		—		—		1,480
Commercial and industrial loans		105		840		6,439		186		8,794		16,364
Consumer loans		—		—		—		—		—		—
State and other political subdivision loans		4,049		—		—		—		—		4,049
Other commercial loans		623		—		2,021		—		3,120		5,764
Total	$	20,730	$	840	$	8,460	$	186	$	11,914	$	42,130

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 the most recent analysis performed ($ in thousands):

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of June 30, 2020	Commercial LHFI
Loans secured by real estate:
Construction, land development and other land:
Pass - RR 1 through RR 6	$	170,118	$	146,424	$	36,674	$	5,413	$	3,571	$	5,192	$	37,106	$	404,498
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		2,417		74		495		47		680		26		—		3,739
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		172,535		146,498		37,169		5,460		4,251		5,260		37,106		408,279

Other secured by 1-4 family residential properties:
Pass - RR 1 through RR 6	$	21,491	$	28,901	$	22,057	$	11,956	$	14,141	$	8,565	$	7,010	$	114,121
Special Mention - RR 7		—		90		—		—		—		—		—		90
Substandard - RR 8		4,694		299		1,032		240		71		790		—		7,126
Doubtful - RR 9		33		1		—		—		—		—		—		34
Total		26,218		29,291		23,089		12,196		14,212		9,355		7,010		121,371

Secured by nonfarm, nonresidential properties:
Pass - RR 1 through RR 6	$	315,293	$	519,415	$	466,036	$	384,595	$	332,457	$	424,260	$	108,032	$	2,550,088
Special Mention - RR 7		—		5,655		1,083		—		350		4,894		—		11,982
Substandard - RR 8		8,866		10,821		1,827		3,586		9,131		12,583		921		47,735
Doubtful - RR 9		57		180		—		—		—		331		—		568
Total		324,216		536,071		468,946		388,181		341,938		442,068		108,953		2,610,373

Other real estate secured:
Pass - RR 1 through RR 6	$	67,416	$	181,243	$	295,676	$	160,526	$	130,810	$	35,183	$	10,314	$	881,168
Special Mention - RR 7		—		—		—		—		—		874		—		874
Substandard - RR 8		1,201		187		18		—		63		715		—		2,184
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		68,617		181,430		295,694		160,526		130,873		36,772		10,314		884,226

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of June 30, 2020	Commercial LHFI
Other loans secured by real estate:
Other construction
Pass - RR 1 through RR 6	$	63,346	$	448,004	$	235,925	$	25,957	$	1,481	$	—	$	6,858	$	781,571
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		13,397		—		—		—		—		—		—		13,397
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		76,743		448,004		235,925		25,957		1,481		—		6,858		794,968

Commercial and industrial loans:
Pass - RR 1 through RR 6	$	301,484	$	281,419	$	115,890	$	95,696	$	82,537	$	56,802	$	434,958	$	1,368,786
Special Mention - RR 7		850		—		—		—		—		—		833		1,683
Substandard - RR 8		10,630		2,512		15,481		344		628		2,581		10,089		42,265
Doubtful - RR 9		48		402		—		—		43		4		24		521
Total		313,012		284,333		131,371		96,040		83,208		59,387		445,904		1,413,255

State and other political subdivision loans:
Pass - RR 1 through RR 6	$	85,513	$	109,844	$	54,240	$	119,532	$	144,165	$	408,276	$	898	$	922,468
Special Mention - RR 7		—		—		—		—		—		4,000		—		4,000
Substandard - RR 8		—		—		—		339		—		4,729		—		5,068
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		85,513		109,844		54,240		119,871		144,165		417,005		898		931,536

Other commercial loans:
Pass - RR 1 through RR 6	$	66,388	$	83,965	$	28,885	$	14,821	$	57,952	$	54,114	$	224,792	$	530,917
Special Mention - RR 7		7,917		—		—		—		—		—		11,833		19,750
Substandard - RR 8		98		2,190		686		45		1,063		1		9,670		13,753
Doubtful - RR 9		—		3		—		—		—		23		—		26
Total		74,403		86,158		29,571		14,866		59,015		54,138		246,295		564,446

Total commercial LHFI	$	1,141,257	$	1,821,629	$	1,276,005	$	823,097	$	779,143	$	1,023,985	$	863,338	$	7,728,454

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of June 30, 2020	Consumer LHFI
Loans secured by real estate:
Construction, land development and other land:
Current	$	15,175	$	39,837	$	10,387	$	2,398	$	1,784	$	3,955	$	—	$	73,536
Past due 30-89 days		—		—		323		—		—		45		—		368
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		19		107		—		126
Total		15,175		39,837		10,710		2,398		1,803		4,107		—		74,030

Other secured by 1-4 family residential properties:
Current	$	11,365	$	19,349	$	14,814	$	4,464	$	2,697	$	16,646	$	367,313	$	436,648
Past due 30-89 days		—		210		162		—		58		155		914		1,499
Past due 90 days or more		—		—		—		—		—		13		38		51
Nonaccrual		—		35		144		470		—		564		2,046		3,259
Total		11,365		19,594		15,120		4,934		2,755		17,378		370,311		441,457

Secured by nonfarm, nonresidential properties:
Current	$	—	$	—	$	—	$	5	$	—	$	14	$	—	$	19
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		—		—		—		5		—		14		—		19

Other real estate secured:
Current	$	91	$	—	$	44	$	46	$	106	$	302	$	—	$	589
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		91		—		44		46		106		302		—		589

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of June 30, 2020	Consumer LHFI
Other loans secured by real estate:
Secured by 1-4 family residential properties
Current	$	137,146	$	242,961	$	218,993	$	115,354	$	130,831	$	390,425	$	—	$	1,235,710
Past due 30-89 days		73		85		77		123		79		1,497		—		1,934
Past due 90 days or more		—		—		—		139		—		390		—		529
Nonaccrual		44		713		2,507		467		558		8,235		—		12,524
Total		137,263		243,759		221,577		116,083		131,468		400,547		—		1,250,697

Consumer loans:
Current	$	38,008	$	42,705	$	21,144	$	7,161	$	2,069	$	864	$	51,259	$	163,210
Past due 30-89 days		219		330		129		3		—		5		326		1,012
Past due 90 days or more		28		4		11		1		—		—		174		218
Nonaccrual		6		22		69		19		3		—		1		120
Total		38,261		43,061		21,353		7,184		2,072		869		51,760		164,560

Total consumer LHFI	$	202,155	$	346,251	$	268,804	$	130,650	$	138,204	$	423,217	$	422,071	$	1,931,352

Total LHFI	$	1,343,412	$	2,167,880	$	1,544,809	$	953,747	$	917,347	$	1,447,202	$	1,285,409	$	9,659,806

The table below presents LHFI by loan class and credit quality indicator at December 31, 2019 ($ in thousands):

	December 31, 2019
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land		$	1,075,146	$	—	$	15,726	$	42	$	1,090,914
Secured by 1-4 family residential properties			116,592		45		6,355		41		123,033
Secured by nonfarm, nonresidential properties			2,430,761		—		44,001		328		2,475,090
Other real estate secured			721,238		—		2,547		—		723,785
Commercial and industrial loans			1,407,837		909		68,262		888		1,477,896
Consumer loans			—		—		—		—		—
State and other political subdivision loans			957,948		4,650		5,346		—		967,944
Other loans			469,095		3,445		16,926		30		489,496
Total		$	7,178,617	$	9,049	$	159,163	$	1,329	$	7,348,158

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	71,413	$	332	$	—	$	132	$	71,877	$	1,162,791
Secured by 1-4 family residential properties		1,710,930		5,922		211		15,817		1,732,880		1,855,913
Secured by nonfarm, nonresidential properties		155		—		—		—		155		2,475,245
Other real estate secured		695		—		—		—		695		724,480
Commercial and industrial loans		—		—		—		—		—		1,477,896
Consumer loans		172,649		2,588		393		108		175,738		175,738
State and other political subdivision loans		—		—		—		—		—		967,944
Other loans		6,125		—		—		—		6,125		495,621
Total	$	1,961,967	$	8,842	$	604	$	16,057	$	1,987,470	$	9,335,628

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	Prime Rate, 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	Prime Rate, 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	WARM	Prime Rate, National Unemployment
	Secured by 1-4 family residential properties	Trustmark mortgage	WARM	Southern Unemployment
Commercial and industrial loans	Commercial and industrial loans	Commercial and industrial - non-working capital	DCF	Trustmark historical data
		Commercial and industrial - working capital	DCF	Trustmark historical data
		Credit cards	WARM	Trustmark call report data
Consumer loans	Consumer loans	Credit cards	WARM	Trustmark call report data
		Overdrafts	Loss Rate	Trustmark historical data
		All other consumer	DCF	Prime Rate, 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 table disaggregates the ACL and the amortized cost basis of the loans by the measurement methodology used at June 30, 2020 ($ in thousands):

	June 30, 2020
	ACL						LHFI
	Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total ACL		Individually Evaluated for Credit Loss		Collectively Evaluated for Credit Loss		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	—	$	11,940	$	11,940	$	1,948		480,361	$	482,309
Other secured by 1-4 family residential properties		—		12,716		12,716		496		562,332		562,828
Secured by nonfarm, nonresidential properties		—		36,417		36,417		11,966		2,598,426		2,610,392
Other real estate secured		—		7,600		7,600		63		884,752		884,815
Other loans secured by real estate:
Other construction		—		10,803		10,803		—		794,968		794,968
Secured by 1-4 family residential properties		—		10,899		10,899		1,480		1,249,217		1,250,697
Commercial and industrial loans		21		12,529		12,550		16,363		1,396,892		1,413,255
Consumer loans		—		6,397		6,397		—		164,560		164,560
State and other political subdivision loans		1,779		1,635		3,414		4,049		927,487		931,536
Other commercial loans		518		5,934		6,452		5,764		558,682		564,446
Total	$	2,318	$	116,870	$	119,188	$	42,129	$	9,617,677	$	9,659,806

The following table disaggregates the allowance for loan losses and LHFI balances by the impairment evaluation methodology used at December 31, 2019 ($ in thousands):

	December 31, 2019
	Allowance for Loan Losses						LHFI
	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	8,260	$	8,260	$	626	$	1,162,165	$	1,162,791
Secured by 1-4 family residential properties		35		8,897		8,932		5,464		1,850,449		1,855,913
Secured by nonfarm, nonresidential properties		2,355		23,803		26,158		6,717		2,468,528		2,475,245
Other real estate secured		—		4,024		4,024		68		724,412		724,480
Commercial and industrial loans		707		25,285		25,992		23,458		1,454,438		1,477,896
Consumer loans		—		3,379		3,379		21		175,717		175,738
State and other political subdivision loans		1,809		420		2,229		4,079		963,865		967,944
Other loans		553		4,750		5,303		784		494,837		495,621
Total	$	5,459	$	78,818	$	84,277	$	41,217	$	9,294,411	$	9,335,628

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Balance at beginning of period	$	100,564		$	79,005		$	84,277		$	79,290
FASB ASU 2016-13 adoption adjustments:
LHFI		—			—			(3,039	)		—
Allowance for loan losses, acquired loans transfer		—			—			815			—
Acquired loans ACL adjustment		—			—			1,007			—
Loans charged-off		(1,870	)		(2,937	)		(7,415	)		(6,970	)
Recoveries		2,309			1,845			4,777			3,982
Net (charge-offs) recoveries		439			(1,092	)		(2,638	)		(2,988	)
PCL		18,185			2,486			38,766			4,097
Balance at end of period	$	119,188		$	80,399		$	119,188		$	80,399

The following table details changes in the ACL by loan class for the period presented ($ in thousands):

	Three Months Ended June 30, 2020
	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	$	9,079	$	(7	)	$	92	$	2,776		$	11,940
Other secured by 1-4 family residential properties		11,711		(36	)		83		958			12,716
Secured by nonfarm, nonresidential properties		28,127		—			445		7,845			36,417
Other real estate secured		5,273		—			12		2,315			7,600
Other loans secured by real estate:
Other construction		7,711		—			21		3,071			10,803
Secured by 1-4 family residential properties		8,042		—			13		2,844			10,899
Commercial and industrial loans		14,564		(297	)		191		(1,908	)		12,550
Consumer loans		6,596		(671	)		468		4			6,397
State and other political subdivision loans		3,441		—			—		(27	)		3,414
Other commercial loans		6,020		(859	)		984		307			6,452
Total	$	100,564	$	(1,870	)	$	2,309	$	18,185		$	119,188

The increases in the PCL for loans and other loans secured by real estate during the three months ended June 30, 2020 were primarily due to the negative impact of COVID-19 on the macroeconomic forecasting variables used in the ACL modeling, such as National and Southern Unemployment, National GDP, Prime Rate and South Vacancy Rate.

The PCL for the commercial and industrial loan portfolio decreased $1.9 million during the three months ended June 30, 2020 primarily due to upgrades on loans from substandard to pass, paydowns and a slight decrease in the calculated PD and LGD, which uses Trustmark’s historical data.

The following table details changes in the ACL by loan class for the period presented ($ in thousands):

	Six Months Ended June 30, 2020
	Balance at Beginning of Period		FASB ASU 2016-13 Adoption Adjustment			Charge-offs			Recoveries		PCL			Balance at End of Period
Loans secured by real estate:
Construction, land development and other land	$	6,371	$	(188	)	$	(7	)	$	186	$	5,578		$	11,940
Other secured by 1-4 family residential properties		5,888		4,188			(100	)		146		2,594			12,716
Secured by nonfarm, nonresidential properties		26,158		(8,179	)		(2,448	)		506		20,380			36,417
Other real estate secured		4,024		(765	)		(8	)		18		4,331			7,600
Other loans secured by real estate:
Other construction		1,889		3,202			—			40		5,672			10,803
Secured by 1-4 family residential properties		3,044		2,891			(19	)		106		4,877			10,899
Commercial and industrial loans		25,992		(8,964	)		(1,279	)		733		(3,932	)		12,550
Consumer loans		3,379		2,059			(1,361	)		941		1,379			6,397
State and other political subdivision loans		2,229		2,455			—			—		(1,270	)		3,414
Other commercial loans		5,303		2,084			(2,193	)		2,101		(843	)		6,452
Total	$	84,277	$	(1,217	)	$	(7,415	)	$	4,777	$	38,766		$	119,188

The following table details changes in the allowance for loan losses, LHFI by loan class for the period presented ($ in thousands):

	2019
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance June 30,
Loans secured by real estate:
Construction, land development and other land loans	$	7,390	$	(35	)	$	577	$	(1,001	)	$	6,931
Secured by 1-4 family residential properties		8,641		(281	)		336		(337	)		8,359
Secured by nonfarm, nonresidential properties		22,376		(34	)		30		1,876			24,248
Other real estate secured		3,450		—			16		255			3,721
Commercial and industrial loans		27,359		(2,831	)		329		2,761			27,618
Consumer loans		2,890		(1,269	)		954		673			3,248
State and other political subdivision loans		990		—			—		(552	)		438
Other loans		6,194		(2,520	)		1,740		422			5,836
Total	$	79,290	$	(6,970	)	$	3,982	$	4,097		$	80,399