Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Summary of total non purchased and purchased loans

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


	June 30, 2021		December 31, 2020
Commercial, financial, agricultural(1)	$	1,509,908	$	2,360,471
Lease financing	78,028		80,022
Real estate – construction:
Residential	274,599		243,814
Commercial	764,014		583,338
Total real estate – construction	1,038,613		827,152
Real estate – 1-4 family mortgage:
Primary	1,623,987		1,536,181
Home equity	426,845		432,768
Rental/investment	271,397		264,436
Land development	113,345		123,179
Total real estate – 1-4 family mortgage	2,435,574		2,356,564
Real estate – commercial mortgage:
Owner-occupied	1,373,150		1,334,765
Non-owner occupied	2,249,112		2,194,739
Land development	101,047		120,125
Total real estate – commercial mortgage	3,723,309		3,649,629
Installment loans to individuals	111,137		149,862
Gross loans	8,896,569		9,423,700
Unearned income	(4,025)		(4,160)
Loans, net of unearned income	$	8,892,544	$	9,419,540

(1)Includes Paycheck Protection Program (“PPP”) loans of $246,931 and $1,128,703 as of June 30, 2021 and December 31, 2020, respectively.

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


	June 30, 2021		December 31, 2020
Commercial, financial, agricultural	$	124,725	$	176,513

Real estate – construction:
Residential	2,564		2,859
Commercial	10,182		28,093
Total real estate – construction	12,746		30,952
Real estate – 1-4 family mortgage:
Primary	166,535		214,770
Home equity	63,088		80,392
Rental/investment	25,944		31,928
Land development	10,950		14,654
Total real estate – 1-4 family mortgage	266,517		341,744
Real estate – commercial mortgage:
Owner-occupied	290,041		323,041
Non-owner occupied	492,917		552,728
Land development	23,902		29,454
Total real estate – commercial mortgage	806,860		905,223
Installment loans to individuals	45,850		59,675


Loans	$	1,256,698	$	1,514,107

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 financing	78,028		80,022
Real estate – construction:
Residential	277,163		246,673
Commercial	774,196		611,431
Total real estate – construction	1,051,359		858,104
Real estate – 1-4 family mortgage:
Primary	1,790,522		1,750,951
Home equity	489,933		513,160
Rental/investment	297,341		296,364
Land development	124,295		137,833
Total real estate – 1-4 family mortgage	2,702,091		2,698,308
Real estate – commercial mortgage:
Owner-occupied	1,663,191		1,657,806
Non-owner occupied	2,742,029		2,747,467
Land development	124,949		149,579
Total real estate – commercial mortgage	4,530,169		4,554,852
Installment loans to individuals	156,987		209,537
Gross loans	10,153,267		10,937,807
Unearned income	(4,025)		(4,160)
Loans, net of unearned income	10,149,242		10,933,647
Allowance for credit losses on loans	(172,354)		(176,144)
Net loans	$	9,976,888	$	10,757,503

Roll forward of the allowance for loan losses

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:



	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment 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)
Recoveries	233		—		401		143		14		1,311		2,102
Net (charge-offs) recoveries	(951)		—		249		(28)		14		(36)		(752)
Provision for credit losses on loans	353		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)
Recoveries	522		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 loans	2,123		(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



	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total

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)
Recoveries	108		—		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 loans	5,796		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)
Recoveries	298		—		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 loans	9,927		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 evaluated	26,803		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 evaluated	2,631,862		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

Unfunded loan commitments, allowance for credit losses



Three Months Ended June 30,	2021		2020
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,	2021		2020
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