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Allowance for Credit Losses
 9 Months Ended
Sep. 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:
 
September 30,
2021		December 31, 2020
Commercial, financial, agricultural$1,436,019 $2,536,984 
Lease financing83,496 80,022 
Real estate – construction:
Residential307,825 246,673 
Commercial783,471 611,431 
Total real estate – construction1,091,296 858,104 
Real estate – 1-4 family mortgage:
Primary1,808,139 1,750,951 
Home equity481,552 513,160 
Rental/investment291,116 296,364 
Land development143,936 137,833 
Total real estate – 1-4 family mortgage2,724,743 2,698,308 
Real estate – commercial mortgage:
Owner-occupied1,630,227 1,657,806 
Non-owner occupied2,779,237 2,747,467 
Land development126,266 149,579 
Total real estate – commercial mortgage4,535,730 4,554,852 
Installment loans to individuals149,821 209,537 
Gross loans10,021,105 10,937,807 
Unearned income(4,281)(4,160)
Loans, net of unearned income10,016,824 10,933,647 
Allowance for credit losses on loans(170,038)(176,144)
Net loans$9,846,786 $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 September 30, 2021 and December 31, 2020, the Company had accrued interest receivable for loans of $45,404 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 $1,356 and $1,500, respectively, as of September 30, 2021 and December 31, 2020. The decrease in the balance during the first nine months 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 September 30, 2021
Allowance for credit losses:
Beginning balance$36,994 $15,729 $31,303 $74,893 $1,511 $11,924 $172,354 
Charge-offs(1,225)— (276)(184)(13)(1,281)(2,979)
Recoveries418 — 193 190 11 1,051 1,863 
Net (charge-offs) recoveries(807)— (83)6 (2)(230)(1,116)
(Recovery of) provision for credit losses on loans(1,210)440 961 (1,004)61 (448)(1,200)
Ending balance$34,977 $16,169 $32,181 $73,895 $1,570 $11,246 $170,038 
Nine Months Ended September 30, 2021
Allowance for credit losses:
Beginning balance$39,031 $16,047 $32,165 $76,127 $1,624 $11,150 $176,144 
Charge-offs(5,907)(52)(529)(416)(13)(4,286)(11,203)
Recoveries940 13 855 504 36 3,949 6,297 
Net (charge-offs) recoveries(4,967)(39)326 88 23 (337)(4,906)
(Recovery of) provision for credit losses on loans913 161 (310)(2,320)(77)433 (1,200)
Ending balance$34,977 $16,169 $32,181 $73,895 $1,570 $11,246 $170,038 
Period-End Amount Allocated to:
Individually evaluated$9,717 $— $206 $5,968 $— $607 $16,498 
Collectively evaluated 25,260 16,169 31,975 67,927 1,570 10,639 153,540 
Ending balance$34,977 $16,169 $32,181 $73,895 $1,570 $11,246 $170,038 
Loans:
Individually evaluated$15,193 $— $5,311 $19,120 $— $617 $40,241 
Collectively evaluated 1,420,826 1,091,296 2,719,432 4,516,610 79,215 149,204 9,976,583 
Ending balance$1,436,019 $1,091,296 $2,724,743 $4,535,730 $79,215 $149,821 $10,016,824 
Nonaccruing loans with no allowance for credit losses$2,658 $— $3,039 $2,865 $— $10 $8,572 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
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)
Recoveries698 31 152 711 1 1,594 3,187 
Net (charge-offs) recoveries278 (105)(568)158 (167)15 (389)
Provision for credit losses on loans7,232 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)
Recoveries996 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 loans17,159 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 evaluated27,984 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 evaluated2,630,392 773,119 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 
 
The Company recorded a negative provision (recovery) for credit losses of $1,200 during the third quarter and first nine months of 2021, as compared to a provision for credit losses on loans of $23,100 in the third quarter of 2020 and $76,350 in the first nine months 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’s allowance model indicated that a release of the allowance for credit losses was appropriate during the third quarter of 2021.
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 September 30,20212020
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,535 $17,335 
(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense) (200)2,700 
Ending balance$20,335 $20,035 
Nine Months Ended September 30,20212020
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,535 $946 
Impact of the adoption of ASC 326
— 10,389 
(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)(200)8,700 
Ending balance$20,335 $20,035