Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

Summary of total non purchased and purchased loans

The following is a summary of non purchased loans and leases as of the dates presented:


	September 30, 2020		December 31, 2019
Commercial, financial, agricultural	$	2,445,294	$	1,052,353
Lease financing	87,257		85,700
Real estate – construction:
Residential	261,432		272,643
Commercial	477,441		502,258
Total real estate – construction	738,873		774,901
Real estate – 1-4 family mortgage:
Primary	1,517,528		1,449,219
Home equity	442,380		456,265
Rental/investment	272,811		291,931
Land development	136,573		152,711
Total real estate – 1-4 family mortgage	2,369,292		2,350,126
Real estate – commercial mortgage:
Owner-occupied	1,316,408		1,209,204
Non-owner occupied	2,176,562		1,803,587
Land development	117,672		116,085
Total real estate – commercial mortgage	3,610,642		3,128,876
Installment loans to individuals	177,195		199,843
Gross loans	9,428,553		7,591,799
Unearned income	(4,329)		(3,825)
Loans, net of unearned income	$	9,424,224	$	7,587,974

The following is a summary of purchased loans as of the dates presented:


	September 30, 2020		December 31, 2019
Commercial, financial, agricultural	$	202,768	$	315,619

Real estate – construction:
Residential	3,093		16,407
Commercial	31,153		35,175
Total real estate – construction	34,246		51,582
Real estate – 1-4 family mortgage:
Primary	245,369		332,729
Home equity	95,235		117,275
Rental/investment	33,567		43,169
Land development	16,931		23,314
Total real estate – 1-4 family mortgage	391,102		516,487
Real estate – commercial mortgage:
Owner-occupied	355,994		428,077
Non-owner occupied	577,679		647,308
Land development	32,694		40,004
Total real estate – commercial mortgage	966,367		1,115,389
Installment loans to individuals	66,031		102,587


Loans	$	1,660,514	$	2,101,664

The following is a summary of total non purchased and purchased loans as of the dates presented:


	September 30, 2020		December 31, 2019
Commercial, financial, agricultural	$	2,648,062	$	1,367,972
Lease financing	87,257		85,700
Real estate – construction:
Residential	264,525		289,050
Commercial	508,594		537,433
Total real estate – construction	773,119		826,483
Real estate – 1-4 family mortgage:
Primary	1,762,897		1,781,948
Home equity	537,615		573,540
Rental/investment	306,378		335,100
Land development	153,504		176,025
Total real estate – 1-4 family mortgage	2,760,394		2,866,613
Real estate – commercial mortgage:
Owner-occupied	1,672,402		1,637,281
Non-owner occupied	2,754,241		2,450,895
Land development	150,366		156,089
Total real estate – commercial mortgage	4,577,009		4,244,265
Installment loans to individuals	243,226		302,430
Gross loans	11,089,067		9,693,463
Unearned income	(4,329)		(3,825)
Loans, net of unearned income	11,084,738		9,689,638
Allowance for credit losses on loans	(168,098)		(52,162)
Net loans	$	10,916,640	$	9,637,476

Roll forward of the allowance for loan losses

The following table provides a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:



	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Three Months Ended September 30, 2020
Allowance for credit losses:
Beginning balance	$	30,685	$	12,538	$	29,401	$	60,061	$	1,812	$	10,890	$	145,387

Charge-offs	(420)		(136)		(720)		(553)		(168)		(1,579)		(3,576)
Recoveries	698		31		152		711		1		1,594		3,187
Net (charge-offs) recoveries	278		(105)		(568)		158		(167)		15		(389)
Provision for credit losses on loans	7,232		1,386		3,872		10,363		187		60		23,100
Ending balance	$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098
Nine Months Ended September 30, 2020
Allowance for credit losses:
Beginning balance	$	10,658	$	5,029	$	9,814	$	24,990	$	910	$	761	$	52,162
Impact of the adoption of ASC 326	11,351		3,505		14,314		4,293		521		8,500		42,484
Charge-offs	(1,969)		(668)		(1,083)		(2,600)		(168)		(6,003)		(12,491)
Recoveries	996		31		288		2,451		11		5,816		9,593
Net (charge-offs) recoveries	(973)		(637)		(795)		(149)		(157)		(187)		(2,898)
Provision for credit losses on loans	17,159		5,922		9,372		41,448		558		1,891		76,350
Ending balance	$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098
Period-End Amount Allocated to:
Individually evaluated	$	10,211	$	—	$	275	$	380	$	—	$	270	$	11,136
Collectively evaluated	27,984		13,819		32,430		70,202		1,832		10,695		156,962
Ending balance	$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098
Loans:
Individually evaluated	$	17,670	$	—	$	4,718	$	6,596	$	—	$	618	$	29,602
Collectively evaluated	2,630,392		773,119		2,755,676		4,570,413		82,928		242,608		11,055,136
Ending balance	$	2,648,062	$	773,119	$	2,760,394	$	4,577,009	$	82,928	$	243,226	$	11,084,738

Nonaccruing loans with no allowance for credit losses	$	589	$	—	$	4,147	$	3,644	$	—	$	—	$	8,380



	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Installment and Other(1)		Total

Three Months Ended September 30, 2019
Allowance for credit losses:
Beginning balance	$	9,534	$	5,302	$	9,616	$	24,302	$	1,305	$	50,059
Charge-offs	(757)		—		(268)		(677)		(3,263)		(4,965)
Recoveries	761		—		219		33		3,007		4,020
Net (charge-offs) recoveries	4		—		(49)		(644)		(256)		(945)



Provision for credit losses on loans	750		(175)		282		381		462		1,700
Ending balance	$	10,288	$	5,127	$	9,849	$	24,039	$	1,511	$	50,814
Nine Months Ended September 30, 2019
Allowance for credit losses:
Beginning balance	$	8,269	$	4,755	$	10,139	$	24,492	$	1,371	$	49,026
Charge-offs	(1,709)		—		(1,143)		(1,406)		(3,695)		(7,953)
Recoveries	1,376		7		531		644		3,083		5,641
Net (charge-offs) recoveries	(333)		7		(612)		(762)		(612)		(2,312)



Provision for credit losses on loans	2,352		365		322		309		752		4,100
Ending balance	$	10,288	$	5,127	$	9,849	$	24,039	$	1,511	$	50,814
Period-End Amount Allocated to:
Individually evaluated for impairment	$	1,382	$	24	$	186	$	450	$	3	$	2,045
Collectively evaluated for impairment	8,778		5,103		9,313		21,521		1,506		46,221
Purchased with deteriorated credit quality	128		—		350		2,068		2		2,548
Ending balance	$	10,288	$	5,127	$	9,849	$	24,039	$	1,511	$	50,814

(1)Includes lease financing receivables.

Investment in loans, net of unearned income on impairment methodology


	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Installment and Other(1)		Total




December 31, 2019
Individually evaluated for impairment	$	8,460	$	12,416	$	20,262	$	9,550	$	491	$	51,179
Collectively evaluated for impairment	1,329,974		813,204		2,810,808		4,131,582		380,627		9,466,195
Purchased with deteriorated credit quality	29,538		863		35,543		103,133		3,187		172,264
Ending balance	$	1,367,972	$	826,483	$	2,866,613	$	4,244,265	$	384,305	$	9,689,638

(1)Includes lease financing receivables.

Unfunded Loan Commitments, Allowance for Credit Losses



Three Months Ended September 30, 2020
Allowance for credit losses on unfunded loan commitments:
Beginning balance	$	17,335

Provision for credit losses on unfunded loan commitments (included in other noninterest expense)	2,700
Ending balance	$	20,035

Nine Months Ended September 30, 2020
Allowance for credit losses on unfunded loan commitments:
Beginning balance	$	946
Impact of the adoption of ASC 326	10,389
Provision for credit losses on unfunded loan commitments (included in other noninterest expense)	8,700
Ending balance	$	20,035