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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2022
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:
 
March 31,
2022		December 31, 2021
Commercial, financial, agricultural (1)
$1,445,607 $1,423,270 
Lease financing94,954 80,192 
Real estate – construction:
Residential306,655 302,275 
Commercial915,397 802,621 
Total real estate – construction1,222,052 1,104,896 
Real estate – 1-4 family mortgage:
Primary1,925,813 1,816,120 
Home equity470,665 474,604 
Rental/investment292,811 288,474 
Land development151,690 145,048 
Total real estate – 1-4 family mortgage2,840,979 2,724,246 
Real estate – commercial mortgage:
Owner-occupied1,538,693 1,563,351 
Non-owner occupied2,907,116 2,856,947 
Land development132,055 128,739 
Total real estate – commercial mortgage4,577,864 4,549,037 
Installment loans to individuals137,115 143,340 
Gross loans10,318,571 10,024,981 
Unearned income(5,112)(4,067)
Loans, net of unearned income10,313,459 10,020,914 
Allowance for credit losses on loans(166,468)(164,171)
Net loans$10,146,991 $9,856,743 

(1)Includes Paycheck Protection Program (“PPP”) loans of $8,382 and $58,391 as of March 31, 2022 and December 31, 2021, respectively.

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, 2021.
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 March 31, 2022 and December 31, 2021, the Company had accrued interest receivable for loans of $40,409 and $41,692, 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 $1,266 and $1,273, respectively, as of March 31, 2022 and December 31, 2021.
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 March 31, 2022
Allowance for credit losses:
Beginning balance$33,922 $16,419 $32,356 $68,940 $1,486 $11,048 $164,171 
Impact of PCD loans acquired during the period1,648 — — — — — 1,648 
Charge-offs(2,102)— (163)(6)(7)(779)(3,057)
Recoveries1,136 — 178 155 12 725 2,206 
Net (charge-offs) recoveries(966)— 15 149 5 (54)(851)
Provision for credit losses on loans(998)1,992 4,477 (3,858)91 (204)1,500 
Ending balance$33,606 $18,411 $36,848 $65,231 $1,582 $10,790 $166,468 
Period-End Amount Allocated to:
Individually evaluated$9,225 $— $396 $2,660 $— $570 $12,851 
Collectively evaluated 24,381 18,411 36,452 62,571 1,582 10,220 153,617 
Ending balance$33,606 $18,411 $36,848 $65,231 $1,582 $10,790 $166,468 
Loans:
Individually evaluated$13,070 $— $4,477 $15,464 $— $570 $33,581 
Collectively evaluated 1,432,537 1,222,052 2,836,502 4,562,400 89,842 136,545 10,279,878 
Ending balance$1,445,607 $1,222,052 $2,840,979 $4,577,864 $89,842 $137,115 $10,313,459 
Nonaccruing loans with no allowance for credit losses$435 $— $2,614 $5,298 $— $2 $8,349 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
Three Months Ended March 31, 2021
Allowance for credit losses:
Beginning balance$39,031 $16,047 $32,165 $76,127 $1,624 $11,150 $176,144 
Charge-offs(3,498)(52)(101)(61)— (1,658)(5,370)
Recoveries289 13 261 171 11 1,587 2,332 
Net (charge-offs) recoveries(3,209)(39)160 110 11 (71)(3,038)
Provision for credit losses on loans1,770 (1,031)(631)(12)(89)(7)— 
Ending balance$37,592 $14,977 $31,694 $76,225 $1,546 $11,072 $173,106 
Period-End Amount Allocated to:
Individually evaluated$9,908 $— $232 $4,846 $— $607 $15,593 
Collectively evaluated27,684 14,977 31,462 71,379 1,546 10,465 157,513 
Ending balance$37,592 $14,977 $31,694 $76,225 $1,546 $11,072 $173,106 
Loans:
Individually evaluated$15,435 $— $6,311 $18,508 $— $621 $40,875 
Collectively evaluated2,233,852 955,918 2,679,750 4,530,519 75,256 172,238 10,647,533 
Ending balance$2,249,287 $955,918 $2,686,061 $4,549,027 $75,256 $172,859 $10,688,408 
Nonaccruing loans with no allowance for credit losses$1,848 $— $4,695 $2,113 $— $— $8,656 
 
The Company recorded a provision for credit losses of $1,500 during the first quarter of 2022, as compared to no provision for credit losses recorded in the first quarter of 2021. The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. The provision activity during the current quarter was primarily driven by strong loan growth during the quarter and the acquisition of Southeastern Commercial Finance, LLC.
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, 2021.
The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended March 31,20222021
Allowance for credit losses on unfunded loan commitments:
Beginning balance$20,035 $20,535 
(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense) (550)— 
Ending balance$19,485 $20,535