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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 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:
 
June 30,
2021		December 31, 2020
Commercial, financial, agricultural$1,634,633 $2,536,984 
Lease financing78,028 80,022 
Real estate – construction:
Residential277,163 246,673 
Commercial774,196 611,431 
Total real estate – construction1,051,359 858,104 
Real estate – 1-4 family mortgage:
Primary1,790,522 1,750,951 
Home equity489,933 513,160 
Rental/investment297,341 296,364 
Land development124,295 137,833 
Total real estate – 1-4 family mortgage2,702,091 2,698,308 
Real estate – commercial mortgage:
Owner-occupied1,663,191 1,657,806 
Non-owner occupied2,742,029 2,747,467 
Land development124,949 149,579 
Total real estate – commercial mortgage4,530,169 4,554,852 
Installment loans to individuals156,987 209,537 
Gross loans10,153,267 10,937,807 
Unearned income(4,025)(4,160)
Loans, net of unearned income10,149,242 10,933,647 
Allowance for credit losses on loans(172,354)(176,144)
Net loans$9,976,888 $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 June 30, 2021 and December 31, 2020, the Company had accrued interest receivable for loans of $48,774 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 $1,367 and $1,500, respectively, as of June 30, 2021 and December 31, 2020. The decrease in the balance during the first half 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 June 30, 2021
Allowance for credit losses:
Beginning balance$37,592 $14,977 $31,694 $76,225 $1,546 $11,072 $173,106 
Charge-offs(1,184)— (152)(171)— (1,347)(2,854)
Recoveries233 — 401 143 14 1,311 2,102 
Net (charge-offs) recoveries(951)— 249 (28)14 (36)(752)
Provision for credit losses on loans353 752 (640)(1,304)(49)888 — 
Ending balance$36,994 $15,729 $31,303 $74,893 $1,511 $11,924 $172,354 
Six Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance$39,031 $16,047 $32,165 $76,127 $1,624 $11,150 $176,144 
Charge-offs(4,682)(52)(253)(232)— (3,005)(8,224)
Recoveries522 13 662 314 25 2,898 4,434 
Net (charge-offs) recoveries(4,160)(39)409 82 25 (107)(3,790)
Provision for credit losses on loans2,123 (279)(1,271)(1,316)(138)881 — 
Ending balance$36,994 $15,729 $31,303 $74,893 $1,511 $11,924 $172,354 
Period-End Amount Allocated to:
Individually evaluated$9,121 $— $228 $4,207 $— $612 $14,168 
Collectively evaluated 27,873 15,729 31,075 70,686 1,511 11,312 158,186 
Ending balance$36,994 $15,729 $31,303 $74,893 $1,511 $11,924 $172,354 
Loans:
Individually evaluated$14,409 $— $5,017 $20,810 $— $636 $40,872 
Collectively evaluated 1,620,224 1,051,359 2,697,074 4,509,359 74,003 156,351 10,108,370 
Ending balance$1,634,633 $1,051,359 $2,702,091 $4,530,169 $74,003 $156,987 $10,149,242 
Nonaccruing loans with no allowance for credit losses$2,826 $— $2,841 $4,953 $— $10 $10,630 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
Three Months Ended June 30, 2020
Allowance for credit losses:
Beginning balance$25,937 $10,924 $27,320 $44,237 $1,588 $10,179 $120,185 
Charge-offs(1,156)(532)(142)— — (1,736)(3,566)
Recoveries108 — 48 41 5 1,666 1,868 
Net (charge-offs) recoveries(1,048)(532)(94)41 5 (70)(1,698)
Provision for credit losses on loans5,796 2,146 2,175 15,783 219 781 26,900 
Ending balance$30,685 $12,538 $29,401 $60,061 $1,812 $10,890 $145,387 
Six Months Ended June 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(1,549)(532)(363)(2,047)— (4,424)(8,915)
Recoveries298 — 136 1,740 10 4,222 6,406 
Net (charge-offs) recoveries(1,251)(532)(227)(307)10 (202)(2,509)
Provision for credit losses on loans9,927 4,536 5,500 31,085 371 1,831 53,250 
Ending balance$30,685 $12,538 $29,401 $60,061 $1,812 $10,890 $145,387 
Period-End Amount Allocated to:
Individually evaluated$3,882 $— $378 $550 $— $270 $5,080 
Collectively evaluated26,803 12,538 29,023 59,511 1,812 10,620 140,307 
Ending balance$30,685 $12,538 $29,401 $60,061 $1,812 $10,890 $145,387 
Loans:
Individually evaluated$9,736 $— $5,142 $7,883 $— $626 $23,387 
Collectively evaluated2,631,862 791,108 2,783,371 4,402,870 80,779 283,927 10,973,917 
Ending balance$2,641,598 $791,108 $2,788,513 $4,410,753 $80,779 $284,553 $10,997,304 
Nonaccruing loans with no allowance for credit losses$720 $— $2,503 $3,910 $— $2 $7,135 
 
The Company did not record a provision for credit losses during the second quarter or first half of 2021, as compared to a provision for credit losses on loans of $26,900 in the second quarter of 2020 and $53,250 in the first half 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 second 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 June 30,20212020
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,535 $14,735 
Provision for credit losses on unfunded loan commitments (included in other noninterest expense) — 2,600 
Ending balance$20,535 $17,335 
Six Months Ended June 30,20212020
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,535 $946 
Impact of the adoption of ASC 326
— 10,389 
Provision for credit losses on unfunded loan commitments (included in other noninterest expense)— 6,000 
Ending balance$20,535 $17,335