Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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:


	September 30, 2021		December 31, 2020
Commercial, financial, agricultural(1)	$	1,321,569	$	2,360,471
Lease financing	83,496		80,022
Real estate – construction:
Residential	306,537		243,814
Commercial	779,766		583,338
Total real estate – construction	1,086,303		827,152
Real estate – 1-4 family mortgage:
Primary	1,657,195		1,536,181
Home equity	424,860		432,768
Rental/investment	268,609		264,436
Land development	133,732		123,179
Total real estate – 1-4 family mortgage	2,484,396		2,356,564
Real estate – commercial mortgage:
Owner-occupied	1,365,288		1,334,765
Non-owner occupied	2,323,135		2,194,739
Land development	106,475		120,125
Total real estate – commercial mortgage	3,794,898		3,649,629
Installment loans to individuals	109,499		149,862
Gross loans	8,880,161		9,423,700
Unearned income	(4,281)		(4,160)
Loans, net of unearned income	$	8,875,880	$	9,419,540

(1)Includes Paycheck Protection Program (“PPP”) loans of $67,462 and $1,128,703 as of September 30, 2021 and December 31, 2020, respectively.

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


	September 30, 2021		December 31, 2020
Commercial, financial, agricultural	$	114,450	$	176,513

Real estate – construction:
Residential	1,288		2,859
Commercial	3,705		28,093
Total real estate – construction	4,993		30,952
Real estate – 1-4 family mortgage:
Primary	150,944		214,770
Home equity	56,692		80,392
Rental/investment	22,507		31,928
Land development	10,204		14,654
Total real estate – 1-4 family mortgage	240,347		341,744
Real estate – commercial mortgage:
Owner-occupied	264,939		323,041
Non-owner occupied	456,102		552,728
Land development	19,791		29,454
Total real estate – commercial mortgage	740,832		905,223
Installment loans to individuals	40,322		59,675


Loans	$	1,140,944	$	1,514,107

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 financing	83,496		80,022
Real estate – construction:
Residential	307,825		246,673
Commercial	783,471		611,431
Total real estate – construction	1,091,296		858,104
Real estate – 1-4 family mortgage:
Primary	1,808,139		1,750,951
Home equity	481,552		513,160
Rental/investment	291,116		296,364
Land development	143,936		137,833
Total real estate – 1-4 family mortgage	2,724,743		2,698,308
Real estate – commercial mortgage:
Owner-occupied	1,630,227		1,657,806
Non-owner occupied	2,779,237		2,747,467
Land development	126,266		149,579
Total real estate – commercial mortgage	4,535,730		4,554,852
Installment loans to individuals	149,821		209,537
Gross loans	10,021,105		10,937,807
Unearned income	(4,281)		(4,160)
Loans, net of unearned income	10,016,824		10,933,647
Allowance for credit losses on loans	(170,038)		(176,144)
Net loans	$	9,846,786	$	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 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)
Recoveries	418		—		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)
Recoveries	940		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 loans	913		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



	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

Unfunded loan commitments, allowance for credit losses



Three Months Ended September 30,	2021		2020
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,	2021		2020
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