Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
Commercial, financial, agricultural(1)	$	1,435,275	$	1,332,962
Lease financing	108,517		80,192
Real estate – construction:
Residential	359,367		300,988
Commercial	848,941		798,914
Total real estate – construction	1,208,308		1,099,902
Real estate – 1-4 family mortgage:
Primary	2,041,885		1,682,050
Home equity	456,765		423,108
Rental/investment	306,165		268,245
Land development	151,986		135,070
Total real estate – 1-4 family mortgage	2,956,801		2,508,473
Real estate – commercial mortgage:
Owner-occupied	1,368,196		1,329,219
Non-owner occupied	2,963,631		2,446,370
Land development	120,026		110,395
Total real estate – commercial mortgage	4,451,853		3,885,984
Installment loans to individuals	104,246		107,565
Gross loans	10,265,000		9,015,078
Unearned income	(5,160)		(4,067)
Loans, net of unearned income	$	10,259,840	$	9,011,011

(1)Includes Paycheck Protection Program (“PPP”) loans of $5,476 and $58,391 as of September 30, 2022 and December 31, 2021, respectively.

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


	September 30, 2022		December 31, 2021
Commercial, financial, agricultural	$	77,816	$	90,308

Real estate – construction:
Residential	387		1,287
Commercial	6,361		3,707
Total real estate – construction	6,748		4,994
Real estate – 1-4 family mortgage:
Primary	102,234		134,070
Home equity	42,861		51,496
Rental/investment	16,679		20,229
Land development	9,314		9,978
Total real estate – 1-4 family mortgage	171,088		215,773
Real estate – commercial mortgage:
Owner-occupied	194,756		234,132
Non-owner occupied	356,485		410,577
Land development	13,571		18,344
Total real estate – commercial mortgage	564,812		663,053
Installment loans to individuals	24,700		35,775


Loans	$	845,164	$	1,009,903

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


	September 30, 2022		December 31, 2021
Commercial, financial, agricultural (1)	$	1,513,091	$	1,423,270
Lease financing	108,517		80,192
Real estate – construction:
Residential	359,754		302,275
Commercial	855,302		802,621
Total real estate – construction	1,215,056		1,104,896
Real estate – 1-4 family mortgage:
Primary	2,144,119		1,816,120
Home equity	499,626		474,604
Rental/investment	322,844		288,474
Land development	161,300		145,048
Total real estate – 1-4 family mortgage	3,127,889		2,724,246
Real estate – commercial mortgage:
Owner-occupied	1,562,952		1,563,351
Non-owner occupied	3,320,116		2,856,947
Land development	133,597		128,739
Total real estate – commercial mortgage	5,016,665		4,549,037
Installment loans to individuals	128,946		143,340
Gross loans	11,110,164		10,024,981
Unearned income	(5,160)		(4,067)
Loans, net of unearned income	11,105,004		10,020,914
Allowance for credit losses on loans	(174,356)		(164,171)
Net loans	$	10,930,648	$	9,856,743

(1)Includes Paycheck Protection Program (“PPP”) loans of $5,476 and $58,391 as of September 30, 2022 and December 31, 2021, respectively.

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, 2022
Allowance for credit losses:
Beginning balance	$	30,193	$	17,290	$	41,910	$	64,373	$	1,802	$	10,563	$	166,131

Charge-offs	(373)		—		(208)		(1,956)		—		(722)		(3,259)
Recoveries	415		—		378		50		113		728		1,684
Net (charge-offs) recoveries	42		—		170		(1,906)		113		6		(1,575)
(Recovery of) provision for credit losses on loans	268		1,454		1,452		6,800		399		(573)		9,800
Ending balance	$	30,503	$	18,744	$	43,532	$	69,267	$	2,314	$	9,996	$	174,356
Nine Months Ended September 30, 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 period	1,648		—		—		—		—		—		1,648
Charge-offs	(4,714)		—		(532)		(2,670)		(7)		(2,351)		(10,274)
Recoveries	1,982		—		725		397		136		2,271		5,511
Net (charge-offs) recoveries	(2,732)		—		193		(2,273)		129		(80)		(4,763)
(Recovery of) provision for credit losses on loans	(2,335)		2,325		10,983		2,600		699		(972)		13,300
Ending balance	$	30,503	$	18,744	$	43,532	$	69,267	$	2,314	$	9,996	$	174,356
Period-End Amount Allocated to:
Individually evaluated	$	4,064	$	—	$	—	$	2,649	$	—	$	370	$	7,083
Collectively evaluated	26,439		18,744		43,532		66,618		2,314		9,626		167,273
Ending balance	$	30,503	$	18,744	$	43,532	$	69,267	$	2,314	$	9,996	$	174,356
Loans:
Individually evaluated	$	9,088	$	153	$	5,965	$	19,043	$	—	$	370	$	34,619
Collectively evaluated	1,504,003		1,214,903		3,121,924		4,997,622		103,357		128,576		11,070,385
Ending balance	$	1,513,091	$	1,215,056	$	3,127,889	$	5,016,665	$	103,357	$	128,946	$	11,105,004

Nonaccruing loans with no allowance for credit losses	$	429	$	153	$	5,809	$	4,633	$	—	$	2	$	11,026


	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

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.


Three Months Ended September 30,	2022		2021
Allowance for credit losses on unfunded loan commitments:
Beginning balance	$	19,935	$	20,535
Provision for (recovery of provision for) credit losses on unfunded loan commitments (included in other noninterest expense)	—		(200)
Ending balance	$	19,935	$	20,335

Nine Months Ended September 30,	2022		2021
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)	(100)		(200)
Ending balance	$	19,935	$	20,335