Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Summary of non-purchased loans and leases

The following is a summary of non purchased loans and leases at December 31: 

	2021		2020
Commercial, financial, agricultural	$	1,332,962	$	2,360,471
Lease financing	80,192		80,022
Real estate – construction:
Residential	300,988		243,814
Commercial	798,914		583,338
Total real estate – construction	1,099,902		827,152
Real estate – 1-4 family mortgage:
Primary	1,682,050		1,536,181
Home equity	423,108		432,768
Rental/investment	268,245		264,436
Land development	135,070		123,179
Total real estate – 1-4 family mortgage	2,508,473		2,356,564
Real estate – commercial mortgage:
Owner-occupied	1,329,219		1,334,765
Non-owner occupied	2,446,370		2,194,739
Land development	110,395		120,125
Total real estate – commercial mortgage	3,885,984		3,649,629
Installment loans to individuals	107,565		149,862
Gross loans	9,015,078		9,423,700
Unearned income	(4,067)		(4,160)
Loans, net of unearned income	$	9,011,011	$	9,419,540

The following is a summary of purchased loans at December 31: 

	2021		2020
Commercial, financial, agricultural	$	90,308	$	176,513
Real estate – construction:
Residential	1,287		2,859
Commercial	3,707		28,093
Total real estate – construction	4,994		30,952
Real estate – 1-4 family mortgage:
Primary	134,070		214,770
Home equity	51,496		80,392
Rental/investment	20,229		31,928
Land development	9,978		14,654
Total real estate – 1-4 family mortgage	215,773		341,744
Real estate – commercial mortgage:
Owner-occupied	234,132		323,041
Non-owner occupied	410,577		552,728
Land development	18,344		29,454
Total real estate – commercial mortgage	663,053		905,223
Installment loans to individuals	35,775		59,675
Loans	$	1,009,903	$	1,514,107

The following is a summary of non purchased and purchased loans and leases at December 31: 

	2021		2020
Commercial, financial, agricultural	$	1,423,270	$	2,536,984
Lease financing	80,192		80,022
Real estate – construction:
Residential	302,275		246,673
Commercial	802,621		611,431
Total real estate – construction	1,104,896		858,104
Real estate – 1-4 family mortgage:
Primary	1,816,120		1,750,951
Home equity	474,604		513,160
Rental/investment	288,474		296,364
Land development	145,048		137,833
Total real estate – 1-4 family mortgage	2,724,246		2,698,308
Real estate – commercial mortgage:
Owner-occupied	1,563,351		1,657,806
Non-owner occupied	2,856,947		2,747,467
Land development	128,739		149,579
Total real estate – commercial mortgage	4,549,037		4,554,852
Installment loans to individuals	143,340		209,537
Gross loans	10,024,981		10,937,807
Unearned income	(4,067)		(4,160)
Loans, net of unearned income	10,020,914		10,933,647
Allowance for credit losses on loans	(164,171)		(176,144)
Net loans	$	9,856,743	$	10,757,503

Roll forward of the allowance for loan losses

The following table provides 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
Year Ended December 31, 2021
Allowance for credit losses on loans:
Beginning balance	$	39,031	$	16,047	$	32,165	$	76,127	$	1,624	$	11,150	$	176,144
Charge-offs	(7,087)		(52)		(1,164)		(5,184)		(13)		(5,374)		(18,874)
Recoveries	1,470		13		1,498		541		49		5,030		8,601
Net charge-offs	(5,617)		(39)		334		(4,643)		36		(344)		(10,273)
Provision (recoveries) of credit losses on loans	508		411		(143)		(2,544)		(174)		242		(1,700)
Ending balance	$	33,922	$	16,419	$	32,356	$	68,940	$	1,486	$	11,048	$	164,171
Period-End Amount Allocated to:
Individually evaluated	$	9,239	$	—	$	216	$	2,401	$	—	$	607	$	12,463
Collectively evaluated	24,683		16,419		32,140		66,539		1,486		10,441		151,708
Ending balance	$	33,922	$	16,419	$	32,356	$	68,940	$	1,486	$	11,048	$	164,171
Loans:
Individually evaluated	$	12,776	$	—	$	5,360	$	14,623	$	—	$	690	$	33,449
Collectively evaluated	1,410,494		1,104,896		2,718,886		4,534,414		76,125		142,650		9,987,465
Ending balance	$	1,423,270	$	1,104,896	$	2,724,246	$	4,549,037	$	76,125	$	143,340	$	10,020,914
Nonaccruing loans with no allowance for credit losses	$	397	$	—	$	2,329	$	5,270	$	—	$	22	$	8,018

	Commercial		Real Estate  - Construction		Real Estate - 1-4 Family Mortgage		Real Estate  - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Year Ended December 31, 2020
Allowance for credit losses on loans:
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	(3,577)		(716)		(1,167)		(2,642)		(168)		(7,835)		(16,105)
Recoveries	1,263		31		838		2,478		11		7,632		12,253
Net charge-offs	(2,314)		(685)		(329)		(164)		(157)		(203)		(3,852)
Provision for credit losses on loans	19,336		8,198		8,366		47,008		350		2,092		85,350
Ending balance	$	39,031	$	16,047	$	32,165	$	76,127	$	1,624	$	11,150	$	176,144
Period-End Amount Allocated to:
Individually evaluated	$	10,345	$	497	$	300	$	2,444	$	—	$	604	$	14,190
Collectively evaluated	28,686		15,550		31,865		73,683		1,624		10,546		161,954
Ending balance	$	39,031	$	16,047	$	32,165	$	76,127	$	1,624	$	11,150	$	176,144
Loans:
Individually evaluated	$	16,091	$	497	$	5,379	$	21,764	$	—	$	619	$	44,350
Collectively evaluated	2,520,893		857,607		2,692,929		4,533,088		75,862		208,918		10,889,297
Ending balance	$	2,536,984	$	858,104	$	2,698,308	$	4,554,852	$	75,862	$	209,537	$	10,933,647
Nonaccruing loans with no allowance for credit losses	$	541	$	—	$	4,054	$	4,382	$	—	$	—	$	8,977

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 year, nominal loan growth excluding PPP loans and stable credit metrics, the Company’s allowance model indicated that a release of the allowance for credit losses was appropriate during 2021.

The following table provides 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 prior to the adoption of ASC 326 for the periods presented:

	Commercial		Real Estate  - Construction		Real Estate - 1-4 Family Mortgage		Real Estate  - Commercial Mortgage		Installment and Other(1)		Total
Year Ended December 31, 2019
Allowance for loan losses:
Beginning balance	$	8,269	$	4,755	$	10,139	$	24,492	$	1,371	$	49,026
Charge-offs	(2,681)		—		(1,602)		(1,490)		(7,705)		(13,478)
Recoveries	1,428		21		712		689		6,714		9,564
Net charge-offs	(1,253)		21		(890)		(801)		(991)		(3,914)
Provision for loan losses	3,642		253		565		1,299		1,291		7,050
Ending balance	$	10,658	$	5,029	$	9,814	$	24,990	$	1,671	$	52,162
Period-End Amount Allocated to:
Individually evaluated for impairment	$	1,434	$	16	$	160	$	396	$	6	$	2,012
Collectively evaluated for impairment	8,932		5,013		9,363		23,208		1,663		48,179
Purchased with deteriorated credit quality	292		—		291		1,386		2		1,971
Ending balance	$	10,658	$	5,029	$	9,814	$	24,990	$	1,671	$	52,162

(1)Includes lease financing receivables.

Unfunded loan commitments, allowance for credit losses

The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.

	Year Ended
	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)	(500)		9,200
Ending balance	$	20,035	$	20,535