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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
(In Thousands)
The following is a summary of total non purchased and purchased loans as of the dates presented:
 
March 31,
2021		December 31, 2020
Commercial, financial, agricultural$2,249,287 $2,536,984 
Lease financing79,271 80,022 
Real estate – construction:
Residential255,356 246,673 
Commercial700,562 611,431 
Total real estate – construction955,918 858,104 
Real estate – 1-4 family mortgage:
Primary1,766,751 1,750,951 
Home equity504,620 513,160 
Rental/investment285,779 296,364 
Land development128,911 137,833 
Total real estate – 1-4 family mortgage2,686,061 2,698,308 
Real estate – commercial mortgage:
Owner-occupied1,644,770 1,657,806 
Non-owner occupied2,767,869 2,747,467 
Land development136,388 149,579 
Total real estate – commercial mortgage4,549,027 4,554,852 
Installment loans to individuals172,859 209,537 
Gross loans10,692,423 10,937,807 
Unearned income(4,015)(4,160)
Loans, net of unearned income10,688,408 10,933,647 
Allowance for credit losses on loans(173,106)(176,144)
Net loans$10,515,302 $10,757,503 

Allowance for Credit Losses on Loans

The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio and is maintained at a level believed adequate by management to absorb credit losses inherent in the entire loan portfolio. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis. Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets. The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio. As of March 31, 2021 and December 31, 2020, the Company had accrued interest receivable for loans of $56,199 and $56,459, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. Although the Company made the election to exclude accrued interest from the measurement of the allowance for credit losses, the Company did have an allowance for credit losses on interest deferred as part of the loan deferral program of $1,375 and $1,500, respectively, as of March 31, 2021 and December 31, 2020. The decrease in the balance during the first quarter of 2021 is due to the charge-off of deferred interest balances.
The following tables provide 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:
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment
Loans to Individuals		Total
Three Months Ended March 31, 2021
Allowance for credit losses:
Beginning balance$39,031 $16,047 $32,165 $76,127 $1,624 $11,150 $176,144 
Charge-offs(3,498)(52)(101)(61)— (1,658)(5,370)
Recoveries289 13 261 171 11 1,587 2,332 
Net (charge-offs) recoveries(3,209)(39)160 110 11 (71)(3,038)
Provision for credit losses on loans1,770 (1,031)(631)(12)(89)(7)— 
Ending balance$37,592 $14,977 $31,694 $76,225 $1,546 $11,072 $173,106 
Period-End Amount Allocated to:
Individually evaluated$9,908 $— $232 $4,846 $— $607 $15,593 
Collectively evaluated 27,684 14,977 31,462 71,379 1,546 10,465 157,513 
Ending balance$37,592 $14,977 $31,694 $76,225 $1,546 $11,072 $173,106 
Loans:
Individually evaluated$15,435 $— $6,311 $18,508 $— $621 $40,875 
Collectively evaluated 2,233,852 955,918 2,679,750 4,530,519 75,256 172,238 10,647,533 
Ending balance$2,249,287 $955,918 $2,686,061 $4,549,027 $75,256 $172,859 $10,688,408 
Nonaccruing loans with no allowance for credit losses$1,848 $— $4,695 $2,113 $— $— $8,656 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
Three Months Ended March 31, 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(393)— (221)(2,047)— (2,688)(5,349)
Recoveries190 — 88 1,699 5 2,556 4,538 
Net (charge-offs) recoveries(203)— (133)(348)5 (132)(811)
Provision for credit losses on loans4,131 2,390 3,325 15,302 152 1,050 26,350 
Ending balance$25,937 $10,924 $27,320 $44,237 $1,588 $10,179 $120,185 
Period-End Amount Allocated to:
Individually evaluated$3,653 $— $370 $856 $— $270 $5,149 
Collectively evaluated22,284 10,924 26,950 43,381 1,588 9,909 115,036 
Ending balance$25,937 $10,924 $27,320 $44,237 $1,588 $10,179 $120,185 
Loans:
Individually evaluated$10,460 $2,728 $5,865 $7,508 $— $625 $27,186 
Collectively evaluated1,414,116 785,167 2,840,436 4,301,200 84,679 316,593 9,742,191 
Ending balance$1,424,576 $787,895 $2,846,301 $4,308,708 $84,679 $317,218 $9,769,377 
Nonaccruing loans with no allowance for credit losses$4,224 $2,728 $3,309 $2,594 $— $— $12,855 
 
The Company did not record a provision for credit losses during the first quarter of 2021, as compared to a provision for credit losses on loans of $26,350 in the first quarter of 2020. The Company’s allowance for credit loss model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. Based on the continual improvements in these forecasts over the last few quarters, the Company determined that additional provisioning during the first quarter of 2021 was not necessary.
Allowance for Credit Losses on Unfunded Loan Commitments
The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
The following tables provide a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended March 31, 2021
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,535 
Provision for credit losses on unfunded loan commitments (included in other noninterest expense) — 
Ending balance$20,535 
Three Months Ended March 31, 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)3,400 
Ending balance$14,735