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

9 Months Ended

Sep. 30, 2020

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

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

	September 30, 2020		December 31, 2019
Loans secured by real estate:
Construction, land development and other land	$	494,519	$	1,162,791
Other secured by 1-4 family residential properties (1)		547,148		1,855,913
Secured by nonfarm, nonresidential properties		2,707,627		2,475,245
Other real estate secured		887,792		724,480
Other loans secured by real estate: (1)
Other construction		891,428		—
Secured by 1-4 family residential properties		1,228,252		—
Commercial and industrial loans		1,398,468		1,477,896
Consumer loans		163,933		175,738
State and other political subdivision loans		935,349		967,944
Other commercial loans (1)		593,212		495,621
LHFI		9,847,728		9,335,628
Less ACL		122,010		84,277
Net LHFI	$	9,725,718	$	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 September 30, 2020 ($ in thousands):

	September 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	$	517	$	786	$	—
Other secured by 1-4 family residential properties		1,928		4,298		299
Secured by nonfarm, nonresidential properties		6,951		10,272		—
Other real estate secured		61		565		—
Other loans secured by real estate:
Other construction		—		—		—
Secured by 1-4 family residential properties		—		11,087		359
Commercial and industrial loans		13,465		16,813		—
Consumer loans		—		96		124
State and other political subdivision loans		—		4,019		—
Other commercial loans		—		5,920		—
Total	$	22,922	$	53,856	$	782

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 September 30, 2020 ($ in thousands):

	September 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	$	867	$	262	$	186	$	1,315	$	493,204	$	494,519
Other secured by 1-4 family residential properties		906		664		908		2,478		544,670		547,148
Secured by nonfarm, nonresidential properties		172		93		881		1,146		2,706,481		2,707,627
Other real estate secured		15		107		—		122		887,670		887,792
Other loans secured by real estate:
Other construction		—		—		—		—		891,428		891,428
Secured by 1-4 family residential properties		2,882		1,034		3,857		7,773		1,220,479		1,228,252
Commercial and industrial loans		740		340		1,922		3,002		1,395,466		1,398,468
Consumer loans		899		226		124		1,249		162,684		163,933
State and other political subdivision loans		—		—		177		177		935,172		935,349
Other commercial loans		46		520		401		967		592,245		593,212
Total	$	6,527	$	3,246	$	8,456	$	18,229	$	9,829,499	$	9,847,728

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 September 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	$	87	$	89		4	$	113	$	102
Commercial and industrial loans		1		48		47		—		—		—
Total		4	$	135	$	136		4	$	113	$	102

	Nine Months Ended September 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		11	$	794	$	800		11	$	992	$	980
Secured by nonfarm, nonresidential properties		1		139		139		1		5,055		5,055
Commercial and industrial loans		3		1,630		1,629		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		23	$	6,491	$	6,466		22	$	15,244	$	15,119

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):

	Nine Months Ended September 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		4	$	484		1	$	46
Secured by nonfarm, nonresidential properties		1		139		—		—
Commercial and industrial loans		1		82		8		254
Consumer loans		—		—		1		27
Total		6	$	705		10	$	327

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

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

	September 30, 2020
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	13	$	13
Other secured by 1-4 family residential properties		18		3,689		3,707
Secured by nonfarm, nonresidential properties		—		2,970		2,970
Commercial and industrial loans		1,500		13,198		14,698
Consumer loans		16		19		35
State and other political subdivision loans		—		3,842		3,842
Other commercial loans		—		125		125
Total TDRs	$	1,534	$	23,856	$	25,390

	September 30, 2019
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	18	$	18
Secured by 1-4 family residential properties		101		3,373		3,474
Secured by nonfarm, nonresidential properties		—		5,243		5,243
Commercial and industrial loans		1,246		20,262		21,508
Consumer loans		—		23		23
Other loans		—		244		244
Total TDRs	$	1,347	$	29,163	$	30,510

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 September 30, 2020 ($ in thousands):

	September 30, 2020
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Miscellaneous		Total
Loans secured by real estate:
Construction, land development and other land	$	1,024	$	—	$	—	$	—	$	—	$	1,024
Other secured by 1-4 family residential properties		474		—		—		—		—		474
Secured by nonfarm, nonresidential properties		13,527		—		—		—		—		13,527
Other real estate secured		61		—		—		—		—		61
Other loans secured by real estate:
Other construction		—		—		—		—		—		—
Secured by 1-4 family residential properties		1,453		—		—		—		—		1,453
Commercial and industrial loans		96		798		5,174		155		8,660		14,883
Consumer loans		—		—		—		—		—		—
State and other political subdivision loans		4,019		—		—		—		—		4,019
Other commercial loans		623		—		1,983		—		3,120		5,726
Total	$	21,277	$	798	$	7,157	$	155	$	11,780	$	41,167

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 September 30, 2020	Commercial LHFI
Loans secured by real estate:
Construction, land development and other land:
Pass - RR 1 through RR 6	$	226,639	$	96,572	$	33,263	$	4,709	$	3,424	$	4,336	$	29,238	$	398,181
Special Mention - RR 7		268		—		—		—		—		—		—		268
Substandard - RR 8		6,304		4,194		1,372		34		680		23		—		12,607
Doubtful - RR 9		—		—		—		—		—		42		—		42
Total		233,211		100,766		34,635		4,743		4,104		4,401		29,238		411,098

Other secured by 1-4 family residential properties:
Pass - RR 1 through RR 6	$	28,504	$	23,022	$	18,840	$	10,616	$	11,869	$	6,610	$	8,288	$	107,749
Special Mention - RR 7		46		43		—		—		—		—		—		89
Substandard - RR 8		934		82		981		353		305		613		4,150		7,418
Doubtful - RR 9		31		—		—		—		—		—		—		31
Total		29,515		23,147		19,821		10,969		12,174		7,223		12,438		115,287

Secured by nonfarm, nonresidential properties:
Pass - RR 1 through RR 6	$	545,273	$	503,516	$	435,877	$	326,971	$	274,113	$	333,242	$	110,298	$	2,529,290
Special Mention - RR 7		6,330		6,916		13,487		4,551		5,053		15,227		—		51,564
Substandard - RR 8		14,093		22,207		3,515		13,092		35,939		34,326		2,130		125,302
Doubtful - RR 9		55		167		—		—		217		318		—		757
Total		565,751		532,806		452,879		344,614		315,322		383,113		112,428		2,706,913

Other real estate secured:
Pass - RR 1 through RR 6	$	107,988	$	206,213	$	303,645	$	107,141	$	110,083	$	27,682	$	11,336	$	874,088
Special Mention - RR 7		—		—		—		—		—		858		—		858
Substandard - RR 8		11,076		148		18		—		566		501		—		12,309
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		119,064		206,361		303,663		107,141		110,649		29,041		11,336		887,255

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of September 30, 2020	Commercial LHFI
Other loans secured by real estate:
Other construction
Pass - RR 1 through RR 6	$	113,727	$	564,093	$	194,012	$	13,346	$	1,605	$	—	$	4,060	$	890,843
Special Mention - RR 7		—		—		—		—		—		—		—		—
Substandard - RR 8		585		—		—		—		—		—		—		585
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		114,312		564,093		194,012		13,346		1,605		—		4,060		891,428

Commercial and industrial loans:
Pass - RR 1 through RR 6	$	433,771	$	184,698	$	104,647	$	83,887	$	74,401	$	49,508	$	394,527	$	1,325,439
Special Mention - RR 7		844		—		177		—		—		—		3,000		4,021
Substandard - RR 8		5,824		1,731		15,519		3,781		2,286		5,800		33,604		68,545
Doubtful - RR 9		178		219		—		—		38		4		24		463
Total		440,617		186,648		120,343		87,668		76,725		55,312		431,155		1,398,468

State and other political subdivision loans:
Pass - RR 1 through RR 6	$	141,729	$	84,369	$	51,181	$	116,529	$	135,190	$	396,607	$	832	$	926,437
Special Mention - RR 7		—		—		—		—		—		4,000		—		4,000
Substandard - RR 8		—		—		—		293		—		4,619		—		4,912
Doubtful - RR 9		—		—		—		—		—		—		—		—
Total		141,729		84,369		51,181		116,822		135,190		405,226		832		935,349

Other commercial loans:
Pass - RR 1 through RR 6	$	74,539	$	76,935	$	23,491	$	11,708	$	56,530	$	51,725	$	265,683	$	560,611
Special Mention - RR 7		7,917		—		—		—		—		—		11,333		19,250
Substandard - RR 8		127		2,146		686		—		893		—		9,473		13,325
Doubtful - RR 9		—		3		—		—		—		23		—		26
Total		82,583		79,084		24,177		11,708		57,423		51,748		286,489		593,212

Total commercial LHFI	$	1,726,782	$	1,777,274	$	1,200,711	$	697,011	$	713,192	$	936,064	$	887,976	$	7,939,010

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of September 30, 2020	Consumer LHFI
Loans secured by real estate:
Construction, land development and other land:
Current	$	32,812	$	34,108	$	8,758	$	2,382	$	1,576	$	3,347	$	—	$	82,983
Past due 30-89 days		—		—		241		—		—		74		—		315
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		19		104		—		123
Total		32,812		34,108		8,999		2,382		1,595		3,525		—		83,421

Other secured by 1-4 family residential properties:
Current	$	18,709	$	13,768	$	13,212	$	4,295	$	2,142	$	14,300	$	360,724	$	427,150
Past due 30-89 days		126		297		—		15		58		186		538		1,220
Past due 90 days or more		—		15		12		—		—		—		272		299
Nonaccrual		8		33		110		436		—		462		2,143		3,192
Total		18,843		14,113		13,334		4,746		2,200		14,948		363,677		431,861

Secured by nonfarm, nonresidential properties:
Current	$	698	$	—	$	—	$	4	$	—	$	12	$	—	$	714
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		698		—		—		4		—		12		—		714

Other real estate secured:
Current	$	139	$	—	$	41	$	38	$	102	$	217	$	—	$	537
Past due 30-89 days		—		—		—		—		—		—		—		—
Past due 90 days or more		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total		139		—		41		38		102		217		—		537

	Term Loans by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of September 30, 2020	Consumer LHFI
Other loans secured by real estate:
Secured by 1-4 family residential properties
Current	$	217,950	$	226,130	$	194,593	$	102,945	$	119,707	$	352,569	$	—	$	1,213,894
Past due 30-89 days		256		—		71		274		1,127		1,180		—		2,908
Past due 90 days or more		7		—		—		—		181		171		—		359
Nonaccrual		148		839		2,051		439		241		7,373		—		11,091
Total		218,361		226,969		196,715		103,658		121,256		361,293		—		1,228,252

Consumer loans:
Current	$	54,252	$	32,198	$	16,771	$	4,956	$	1,625	$	617	$	52,170	$	162,589
Past due 30-89 days		329		40		70		168		10		5		503		1,125
Past due 90 days or more		24		1		19		—		—		—		79		123
Nonaccrual		11		6		59		16		3		—		1		96
Total		54,616		32,245		16,919		5,140		1,638		622		52,753		163,933

Total consumer LHFI	$	325,469	$	307,435	$	236,008	$	115,968	$	126,791	$	380,617	$	416,430	$	1,908,718

Total LHFI	$	2,052,251	$	2,084,709	$	1,436,719	$	812,979	$	839,983	$	1,316,681	$	1,304,406	$	9,847,728

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 September 30, 2020 ($ in thousands):

	September 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	$	—	$	10,905	$	10,905	$	1,024		493,495	$	494,519
Other secured by 1-4 family residential properties		—		11,358		11,358		474		546,674		547,148
Secured by nonfarm, nonresidential properties		—		43,762		43,762		13,529		2,694,098		2,707,627
Other real estate secured		—		7,172		7,172		61		887,731		887,792
Other loans secured by real estate:
Other construction		—		10,209		10,209		—		891,428		891,428
Secured by 1-4 family residential properties		—		8,734		8,734		1,453		1,226,799		1,228,252
Commercial and industrial loans		578		12,580		13,158		14,882		1,383,586		1,398,468
Consumer loans		—		6,040		6,040		—		163,933		163,933
State and other political subdivision loans		1,749		1,209		2,958		4,019		931,330		935,349
Other commercial loans		2,295		5,419		7,714		5,725		587,487		593,212
Total	$	4,622	$	117,388	$	122,010	$	41,167	$	9,806,561	$	9,847,728

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 September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Balance at beginning of period	$	119,188		$	80,399		$	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		(1,263	)		(2,892	)		(8,678	)		(9,862	)
Recoveries		2,325			2,680			7,102			6,662
Net (charge-offs) recoveries		1,062			(212	)		(1,576	)		(3,200	)
PCL		1,760			3,039			40,526			7,136
Balance at end of period	$	122,010		$	83,226		$	122,010		$	83,226

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

	Three Months Ended September 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	$	11,940	$	—		$	443	$	(1,478	)	$	10,905
Other secured by 1-4 family residential properties		12,716		(18	)		75		(1,415	)		11,358
Secured by nonfarm, nonresidential properties		36,417		(115	)		18		7,442			43,762
Other real estate secured		7,600		—			42		(470	)		7,172
Other loans secured by real estate:
Other construction		10,803		—			30		(624	)		10,209
Secured by 1-4 family residential properties		10,899		—			18		(2,183	)		8,734
Commercial and industrial loans		12,550		(71	)		447		232			13,158
Consumer loans		6,397		(384	)		375		(348	)		6,040
State and other political subdivision loans		3,414		—			—		(456	)		2,958
Other commercial loans		6,452		(675	)		877		1,060			7,714
Total	$	119,188	$	(1,263	)	$	2,325	$	1,760		$	122,010

The decreases in the PCL for loans and other loans secured by real estate during the three months ended September 30, 2020 were primarily due to improvements in the macroeconomic forecasting variables used in the ACL modeling, such as National and Southern Unemployment, National GDP and Prime Rate.

During the third quarter of 2020, Trustmark conducted a review of significantly impacted borrowers that received one or more payment concessions and other borrowers in industries significantly impacted by COVID-19. The increases in the PCL for loans secured by nonfarm, nonresidential properties and other commercial loans during the three months ended September 30, 2020 were primarily due to downgrades that resulted from the in-depth portfolio review for those loans affected by the COVID-19 pandemic.

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

	Nine Months Ended September 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	)	$	629	$	4,100		$	10,905
Other secured by 1-4 family residential properties		5,888		4,188			(118	)		221		1,179			11,358
Secured by nonfarm, nonresidential properties		26,158		(8,179	)		(2,563	)		524		27,822			43,762
Other real estate secured		4,024		(765	)		(8	)		60		3,861			7,172
Other loans secured by real estate:
Other construction		1,889		3,202			—			70		5,048			10,209
Secured by 1-4 family residential properties		3,044		2,891			(19	)		124		2,694			8,734
Commercial and industrial loans		25,992		(8,964	)		(1,350	)		1,180		(3,700	)		13,158
Consumer loans		3,379		2,059			(1,745	)		1,316		1,031			6,040
State and other political subdivision loans		2,229		2,455			—			—		(1,726	)		2,958
Other commercial loans		5,303		2,084			(2,868	)		2,978		217			7,714
Total	$	84,277	$	(1,217	)	$	(8,678	)	$	7,102	$	40,526		$	122,010

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 September 30,
Loans secured by real estate:
Construction, land development and other land	$	7,390	$	(35	)	$	807	$	(461	)	$	7,701
Secured by 1-4 family residential properties		8,641		(310	)		530		(417	)		8,444
Secured by nonfarm, nonresidential properties		22,376		(261	)		285		2,802			25,202
Other real estate secured		3,450		—			22		82			3,554
Commercial and industrial loans		27,359		(3,090	)		980		3,618			28,867
Consumer loans		2,890		(1,712	)		1,432		702			3,312
State and other political subdivision loans		990		—			—		(518	)		472
Other loans		6,194		(4,454	)		2,606		1,328			5,674
Total	$	79,290	$	(9,862	)	$	6,662	$	7,136		$	83,226