Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Loans and Allowance for Credit Losses

Note 3. Loans and Allowance for Credit Losses

The Company generally makes loans in its market areas of south and central Mississippi; southern and central Alabama; northwest, central and south Louisiana; the northern, central and panhandle regions of Florida; certain areas of east and northeast Texas, including Houston, Beaumont, Dallas, and San Antonio; and Nashville, Tennessee.

Loans, net of unearned income by portfolio are presented at amortized cost basis in the table below. Amortized cost does not include accrued interest, which is reflected in the accrued interest line item in the Consolidated Balance Sheets, totaling $100.2 million and $67.8 million at December 31, 2022 and 2021, respectively. Included in commercial non-real estate loans at December 31, 2022 and 2021 was $38.8 million and $531.1 million, respectively, of Paycheck Protection Program loans, described below. The following table presents loans, net of unearned income, by portfolio class at December 31, 2022 and 2021:

($ in thousands)	2022		2021
Commercial non-real estate	$	10,146,453	$	9,612,460
Commercial real estate - owner occupied		3,033,058		2,821,246
Total commercial and industrial		13,179,511		12,433,706
Commercial real estate - income producing		3,560,991		3,464,626
Construction and land development		1,703,592		1,228,670
Residential mortgages		3,092,605		2,423,890
Consumer		1,577,347		1,583,390
Total loans	$	23,114,046	$	21,134,282

The following briefly describes the composition of each loan category and portfolio class.

Commercial and industrial

Commercial and industrial loans are made available to businesses for working capital (including financing of inventory and receivables), business expansion, to facilitate the acquisition of a business, and the purchase of equipment and machinery, including equipment leasing. These loans are primarily made based on the identified cash flows of the borrower and, when secured, have the added strength of the underlying collateral.

Commercial non-real estate loans may be secured by the assets being financed or other tangible or intangible business assets such as accounts receivable, inventory, ownership, enterprise value or commodity interests, and may incorporate a personal or corporate guarantee; however, some short-term loans may be made on an unsecured basis, including a small portfolio of corporate credit cards, generally issued as a part of overall customer relationships.

Commercial non-real estate loans also include loans made under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). PPP loans are guaranteed by the SBA and are forgivable to the debtor upon satisfaction of certain criteria. The loans bear interest at 1% per annum and have two or five year terms, depending on the date of origination. These loans also earn an origination fee of 1%, 3%, or 5%, depending on the loan size, which is deferred and amortized over the estimated life of the loan using the effective yield method.

Commercial real estate – owner occupied loans consist of commercial mortgages on properties where repayment is generally dependent on the cash flow from the ongoing operations and activities of the borrower. Like commercial non-real estate, these loans are primarily made based on the identified cash flows of the borrower, but also have the added strength of the value of underlying real estate collateral.

Commercial real estate – income producing

Commercial real estate – income producing loans consist of loans secured by commercial mortgages on properties where the loan is made to real estate developers or investors and repayment is dependent on the sale, refinance, or income generated from the operation of the property. Properties financed include retail, office, multifamily, senior housing, hotel/motel, skilled nursing facilities and other commercial properties.

Construction and land development

Construction and land development loans are made to facilitate the acquisition, development, improvement and construction of both commercial and residential-purpose properties. Such loans are made to builders and investors where repayment is expected to be made from the sale, refinance or operation of the property or to businesses to be used in their business operations. This portfolio also includes residential construction loans and loans secured by raw land not yet under development.

Residential mortgages

Residential mortgages consist of closed-end loans secured by first liens on 1- 4 family residential properties. The portfolio includes both fixed and adjustable rate loans, although most longer term, fixed rate loans originated are generally sold in the secondary mortgage market.

Consumer

Consumer loans include second lien mortgage home loans, home equity lines of credit and nonresidential consumer purpose loans. Nonresidential consumer loans include both direct and indirect loans. Direct nonresidential consumer loans are made to finance the purchase of personal property, including automobiles, recreational vehicles and boats, and for other personal purposes (secured and unsecured), and deposit account secured loans. Indirect nonresidential consumer loans include automobile financing provided to the consumer through an agreement with automobile dealerships, though the Company is no longer engaged in this type of lending and the remaining portfolio is in runoff. Consumer loans also include a small portfolio of credit card receivables issued on the basis of applications received through referrals from the Bank’s branches, online and other marketing efforts.

The Bank makes loans in the normal course of business to directors and executive officers of the Company and the Bank and to their associates. Loans to such related parties are made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk of collectability when originated. Balances of loans to the Company’s directors, executive officers and their associates at December 31, 2022 and 2021 were approximately $30.4 million and $62.9 million, respectively. Related party loan activity in 2022 reflect new loans of $3.0 million, and repayments of $35.3 million.

The Bank has a line of credit with the Federal Home Loan Bank of Dallas that is secured by blanket pledges of certain qualifying loan types. The Bank had borrowings on this line of $1.4 and $1.1 billion at December 31, 2022 and 2021, respectively.

The following schedules show activity in the allowance for credit losses by portfolio class for the years ended December 31, 2022 and 2021, as well as the corresponding recorded investment in loans at December 31, 2022 and 2021. Effective January 1, 2020, the Company adopted the provisions of ASC 326 (CECL) using a modified retrospective basis.

	Commercial Non-Real Estate			Commercial Real Estate-Owner Occupied			Total Commercial and Industrial			Commercial Real Estate-Income Producing			Construction and Land Development			Residential Mortgages			Consumer			Total
($ in thousands)	Year Ended December 31, 2022
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	95,888		$	53,433		$	149,321		$	108,058		$	22,102		$	30,623		$	31,961		$	342,065
Charge-offs		(7,637	)		(948	)		(8,585	)		(1,073	)		(3	)		(137	)		(12,792	)		(22,590	)
Recoveries		11,812			733			12,545			878			134			1,749			5,382			20,688
Net provision for loan losses		(3,602	)		(4,934	)		(8,536	)		(35,902	)		8,265			229			3,570			(32,374	)
Ending balance - allowance for loan losses	$	96,461		$	48,284		$	144,745		$	71,961		$	30,498		$	32,464		$	28,121		$	307,789
Reserve for unfunded lending commitments:
Beginning balance	$	4,522		$	323		$	4,845		$	1,694		$	21,907		$	22		$	866		$	29,334
Provision for losses on unfunded    commitments		462			(21	)		441			(299	)		3,203			9			621			3,975
Ending balance - reserve for unfunded    lending commitments	$	4,984		$	302		$	5,286		$	1,395		$	25,110		$	31		$	1,487		$	33,309
Total allowance for credit losses	$	101,445		$	48,586		$	150,031		$	73,356		$	55,608		$	32,495		$	29,608		$	341,098
Allowance for loan losses:
Individually evaluated	$	71		$	31		$	102		$	16		$	18		$	239		$	101		$	476
Collectively evaluated		96,390			48,253			144,643			71,945			30,480			32,225			28,020			307,313
Allowance for loan losses	$	96,461		$	48,284		$	144,745		$	71,961		$	30,498		$	32,464		$	28,121		$	307,789
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		4,984			302			5,286			1,395			25,110			31			1,487			33,309
Reserve for unfunded lending commitments	$	4,984		$	302		$	5,286		$	1,395		$	25,110		$	31		$	1,487		$	33,309
Total allowance for credit losses	$	101,445		$	48,586		$	150,031		$	73,356		$	55,608		$	32,495		$	29,608		$	341,098
Loans:
Individually evaluated for impairment	$	1,248		$	920		$	2,168		$	1,240		$	116		$	3,476		$	515		$	7,515
Collectively evaluated for impairment		10,145,205			3,032,138			13,177,343			3,559,751			1,703,476			3,089,129			1,576,832			23,106,531
Total loans	$	10,146,453		$	3,033,058		$	13,179,511		$	3,560,991		$	1,703,592		$	3,092,605		$	1,577,347		$	23,114,046

	Commercial Non-Real Estate			Commercial Real Estate-Owner Occupied			Total Commercial and Industrial			Commercial Real Estate-Income Producing			Construction and Land Development			Residential Mortgages			Consumer			Total
($ in thousands)	Year Ended December 31, 2021
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	149,693		$	69,134		$	218,827		$	109,474		$	26,462		$	48,842		$	46,572		$	450,177
Charge-offs		(33,523	)		(3,179	)		(36,702	)		(425	)		(274	)		(713	)		(12,722	)		(50,836	)
Recoveries		8,985			642			9,627			105			2,172			1,459			6,282			19,645
Net provision for loan losses		(29,267	)		(13,164	)		(42,431	)		(1,096	)		(6,258	)		(18,965	)		(8,171	)		(76,921	)
Ending balance - allowance for loan losses	$	95,888		$	53,433		$	149,321		$	108,058		$	22,102		$	30,623		$	31,961		$	342,065
Reserve for unfunded lending commitments:
Beginning balance	$	4,529		$	381		$	4,910		$	1,099		$	22,694		$	19		$	1,185		$	29,907
Provision for losses on unfunded    commitments		(7	)		(58	)		(65	)		595			(787	)		3			(319	)		(573	)
Ending balance - reserve for unfunded    lending commitments	$	4,522		$	323		$	4,845		$	1,694		$	21,907		$	22		$	866		$	29,334
Total allowance for credit losses	$	100,410		$	53,756		$	154,166		$	109,752		$	44,009		$	30,645		$	32,827		$	371,399
Allowance for loan losses:
Individually evaluated	$	177		$	94		$	271		$	20		$	20		$	408		$	184		$	903
Collectively evaluated		95,711			53,339			149,050			108,038			22,082			30,215			31,777			341,162
Allowance for loan losses	$	95,888		$	53,433		$	149,321		$	108,058		$	22,102		$	30,623		$	31,961		$	342,065
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		4,522			323			4,845			1,694			21,907			22			866			29,334
Reserve for unfunded lending commitments:	$	4,522		$	323		$	4,845		$	1,694		$	21,907		$	22		$	866		$	29,334
Total allowance for credit losses	$	100,410		$	53,756		$	154,166		$	109,752		$	44,009		$	30,645		$	32,827		$	371,399
Loans:
Individually evaluated for impairment	$	3,431		$	2,546		$	5,977		$	5,288		$	125		$	5,260		$	1,232		$	17,882
Collectively evaluated for impairment		9,609,029			2,818,700			12,427,729			3,459,338			1,228,545			2,418,630			1,582,158			21,116,400
Total loans	$	9,612,460		$	2,821,246		$	12,433,706		$	3,464,626		$	1,228,670		$	2,423,890		$	1,583,390		$	21,134,282

The calculation of the allowance for credit losses is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated. The allowance for credit losses for collectively evaluated portfolios is developed using multiple Moody’s Analytics (“Moody’s”) macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period. These forecasts are anchored on a baseline economic forecast, which Moody’s defines as the “most likely outcome” based on current conditions and its view of where the economy is headed. The baseline scenario is positioned at the 50th percentile of possible outcomes. Several upside and downside alternative scenarios are also derived from that baseline scenario and considered when assessing reasonably possible outcomes. The mix of macroeconomic variables underlying the December 2022 scenarios differ in some respects from the comparable forecasts available at December 2021, given the shift in economic circumstances and risks.

The decrease in the allowance for credit losses at December 31, 2022 compared to December 31, 2021 reflects the improvements in economic conditions, particularly in the first half of the year, and in the Company’s credit quality metrics. In arriving at the allowance for credit losses at December 31, 2022, the Company weighted Moody’s December 2022 baseline economic forecast at 25% and downside recessionary S-2 scenario at 75%. The December 2022 baseline scenario maintains a generally optimistic outlook in its assumptions surrounding the drivers of economic growth, including its expectations of the effectiveness of the Federal Reserve's monetary policy in easing inflationary conditions, while sustaining economic growth and resulting in only a modest decline in job growth. The S-2 scenario is less optimistic compared to the baseline, reflecting the view that supply chain issues worsen and keep inflation elevated longer than expected in the baseline scenario. In turn, the Federal Reserve responds by raising the target interest rate more than assumed in the baseline, the impact of which will cause the U.S. to fall into a recession in the first quarter of 2023 that lasts for three quarters.

The decrease in the allowance for credit losses at December 31, 2021 as compared to December 31, 2020 reflects significant improvement in economic conditions during the year and in the economic outlook at such time. Such improvements allowed for the release of certain of the reserves built in 2020 in response to the economic damage and uncertainty that stemmed from the COVID-19 pandemic. In arriving at the allowance for credit losses at December 31, 2021, the Company weighted the baseline economic forecast at 40%, the slower near-term growth scenario S-2 at 60%.

Nonaccrual Loans and Loans Modified in Troubled Debt Restructurings

The following table shows the composition of nonaccrual loans and those without an allowance for loan loss, by portfolio class.

	December 31,
	2022				2021
($ in thousands)	Total nonaccrual		Nonaccrual without allowance for loan loss		Total nonaccrual		Nonaccrual without allowance for loan loss
Commercial non-real estate	$	4,020	$	941	$	6,974	$	1,264
Commercial real estate - owner occupied		1,461		692		4,921		729
Total commercial and industrial		5,481		1,633		11,895		1,993
Commercial real estate - income producing		1,240		1,174		5,458		5,207
Construction and land development		309		—		844		—
Residential mortgages		25,269		1,884		25,439		1,997
Consumer		6,692		—		11,887		48
Total loans	$	38,991	$	4,691	$	55,523	$	9,245

Nonaccrual loans include nonaccruing loans modified in troubled debt restructurings (TDRs) of $2.6 million and $6.8 million, at December 31, 2022 and 2021, respectively. Total TDRs, both accruing and nonaccruing, were $4.5 million at December 31, 2022 and $10.6 million at December 31, 2021. All TDRs are individually evaluated for credit loss.

The table below presents detail by portfolio class TDRs that were modified during the years ended December 31, 2022, 2021 and 2020.

	Years Ended
($ in thousands)	2022						2021						2020
			Outstanding Recorded Investment						Outstanding Recorded Investment						Outstanding Recorded Investment
Troubled Debt Restructurings:	Number of Contracts		Pre- Modification		Post- Modification		Number of Contracts		Pre- Modification		Post- Modification		Number of Contracts		Pre- Modification		Post- Modification
Commercial non-real estate		—	$	—	$	—		4	$	7,232	$	7,232		3	$	745	$	745
Commercial real estate -    owner occupied		—		—		—		—		—		—		1		297		297
Total commercial    and industrial		—		—		—		4		7,232		7,232		4		1,042		1,042
Commercial real estate -    income producing		—		—		—		—		—		—		—		—		—
Construction and land    development		—		—		—		—		—		—		1		15		15
Residential mortgages		3		148		153		6		1,489		1,512		15		3,424		3,424
Consumer		3		76		76		4		86		86		6		89		89
Total loans		6	$	224	$	229		14	$	8,807	$	8,830		26	$	4,570	$	4,570

The TDRs modified during the year ended December 31, 2022 reflected in the table above include $0.1 million with reduced interest rates, and $0.1 million with other modifications. The TDRs modified during the year ended December 31, 2021 include $7.1 million of loans with extended amortization terms or other payment concessions, $0.5 million with reduced interest rates, and $1.2 million with other modifications. The TDRs modified during the year ended December 31, 2020 include $1.0 million of loans with extended terms or other payment concessions, $0.4 million of loans with significant covenant waivers, $1.1 million with reduced interest rates, and $2.1 million of other modifications.

At December 31, 2022 and 2021, the Company had no unfunded commitments to borrowers whose loan terms had been modified in TDRs.

Three commercial non real estate loans totaling $3.1 million and two residential mortgage and four consumer loans totaling $0.3 million had payment defaults during the year ended December 31, 2022, and had been modified in a TDR in the twelve months preceding default. One residential mortgage loan totaling $0.6 million had a payment default during the year ended December 31, 2021, and had been modified in a TDR in the twelve months preceding default. Two commercial non real estate loans totaling $13.4

million, two residential mortgage loans totaling $0.8 million and one consumer loan totaling less than $0.1 million had payment defaults during the year ended December 31, 2020, and had been modified in a TDR in the twelve months preceding default.

The TDR disclosures above do not include loans eligible for exclusion from TDR assessment under Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Eligible modification must be related to COVID-19, executed on a loan that was not more than 30 days past due as of December 31, 2019 and executed between March 1, 2020 and December 31, 2020. This exclusion relief was extended to January 1, 2022 by the Consolidated Appropriations Act, 2021. These loans are reported in the aging analysis that follows based on the modified terms.

Aging Analysis

The tables below present the aging analysis of past due loans by portfolio class at December 31, 2022 and 2021.

December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
($ in thousands)
Commercial non-real estate	$	4,050	$	21,329	$	3,418	$	28,797	$	10,117,656	$	10,146,453	$	996
Commercial real estate - owner occupied		19,069		3,346		1,894		24,309		3,008,749		3,033,058		1,623
Total commercial and industrial		23,119		24,675		5,312		53,106		13,126,405		13,179,511		2,619
Commercial real estate - income producing		879		—		1,174		2,053		3,558,938		3,560,991		—
Construction and land development		4,029		242		133		4,404		1,699,188		1,703,592		54
Residential mortgages		28,208		11,056		17,346		56,610		3,035,995		3,092,605		293
Consumer		8,845		2,806		4,407		16,058		1,561,289		1,577,347		1,619
Total loans	$	65,080	$	38,779	$	28,372	$	132,231	$	22,981,815	$	23,114,046	$	4,585

December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
($ in thousands)
Commercial non-real estate	$	8,381	$	3,123	$	7,041	$	18,545	$	9,593,915	$	9,612,460	$	2,818
Commercial real estate - owner occupied		704		653		1,563		2,920		2,818,326		2,821,246		142
Total commercial and industrial		9,085		3,776		8,604		21,465		12,412,241		12,433,706		2,960
Commercial real estate - income producing		281		107		5,307		5,695		3,458,931		3,464,626		—
Construction and land development		2,624		1,022		587		4,233		1,224,437		1,228,670		83
Residential mortgages		23,306		4,638		15,339		43,283		2,380,607		2,423,890		310
Consumer		6,806		2,805		7,447		17,058		1,566,332		1,583,390		2,171
Total loans	$	42,102	$	12,348	$	37,284	$	91,734	$	21,042,548	$	21,134,282	$	5,524

Credit Quality Indicators

The following tables present the credit quality indicators by segment and portfolio class of loans at December 31, 2022 and December 31, 2021.

	December 31, 2022
($ in thousands)	Commercial Non- Real Estate		Commercial Real Estate - Owner Occupied		Total Commercial and Industrial		Commercial Real Estate - Income Producing		Construction and Land Development		Total Commercial
Grade:
Pass	$	9,641,117	$	2,912,057	$	12,553,174	$	3,440,648	$	1,690,756	$	17,684,578
Pass-Watch		284,843		49,093		333,936		111,587		12,097		457,620
Special Mention		79,980		6,267		86,247		3,810		196		90,253
Substandard		140,513		65,641		206,154		4,946		543		211,643
Doubtful		—		—		—		—		—		—
Total	$	10,146,453	$	3,033,058	$	13,179,511	$	3,560,991	$	1,703,592	$	18,444,094

	December 31, 2021
($ in thousands)	Commercial Non- Real Estate		Commercial Real Estate - Owner Occupied		Total Commercial and Industrial		Commercial Real Estate - Income Producing		Construction and Land Development		Total Commercial
Grade:
Pass	$	9,279,719	$	2,650,399	$	11,930,118	$	3,373,099	$	1,216,177	$	16,519,394
Pass-Watch		157,815		86,133		243,948		67,157		9,289		320,394
Special Mention		43,344		23,377		66,721		4,466		1,909		73,096
Substandard		131,582		61,337		192,919		19,904		1,295		214,118
Doubtful		—		—		—		—		—		—
Total	$	9,612,460	$	2,821,246	$	12,433,706	$	3,464,626	$	1,228,670	$	17,127,002

	December 31, 2022						December 31, 2021
($ in thousands)	Residential Mortgage		Consumer		Total		Residential Mortgage		Consumer		Total
Performing	$	3,066,319	$	1,570,186	$	4,636,505	$	2,396,282	$	1,570,516	$	3,966,798
Nonperforming		26,286		7,161		33,447		27,608		12,874		40,482
Total	$	3,092,605	$	1,577,347	$	4,669,952	$	2,423,890	$	1,583,390	$	4,007,280

The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process. Below are the definitions of the Company’s internally assigned grades:

Commercial:

•Pass - loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk.

•Pass - Watch - credits in this category are of sufficient risk to cause concern. This category is reserved for credits that display negative performance trends. The “Watch” grade should be regarded as a transition category.

•Special Mention - a criticized asset category defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Special mention credits are not considered part of the Classified credit categories and do not expose an institution to sufficient risk to warrant adverse classification.

•Substandard - an asset that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•Doubtful - an asset that has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

•Loss - credits classified as Loss are considered uncollectable and are charged off promptly once so classified.

Residential and Consumer:

•Performing – accruing loans that have not been modified in a troubled debt restructuring.

•Nonperforming – loans for which there are good reasons to doubt that payments will be made in full. All loans with nonaccrual status and all loans that have been modified in a troubled debt restructuring are classified as nonperforming.

Vintage Analysis

The following tables present credit quality disclosures of amortized cost by segment and vintage for term loans and by revolving and revolving converted to amortizing at December 31, 2022 and 2021. The Company defines vintage as the later of origination, renewal or restructure date.

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022  ($ in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
Commercial Loans:
Pass	$	4,789,035	$	3,608,540	$	2,026,017	$	1,327,839	$	779,966	$	1,539,131	$	3,482,828	$	131,222	$	17,684,578
Pass-Watch		84,696		64,263		94,484		46,483		31,375		58,567		67,767		9,985	$	457,620
Special    Mention		30,511		13,625		3,694		7,749		1,719		5,701		25,184		2,070	$	90,253
Substandard		50,016		14,409		21,266		29,350		21,637		23,593		40,213		11,159	$	211,643
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial    Loans	$	4,954,258	$	3,700,837	$	2,145,461	$	1,411,421	$	834,697	$	1,626,992	$	3,615,992	$	154,436	$	18,444,094
Residential    Mortgage and    Consumer Loans:
Performing	$	735,080	$	752,352	$	564,345	$	255,146	$	149,234	$	959,409	$	1,216,105	$	4,834		4,636,505
Nonperforming		1,251		2,632		944		1,954		2,461		22,143		459		1,603		33,447
Total Consumer    Loans	$	736,331	$	754,984	$	565,289	$	257,100	$	151,695	$	981,552	$	1,216,564	$	6,437	$	4,669,952

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2021  ($ in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
Commercial Loans:
Pass	$	4,946,459	$	3,008,160	$	2,035,849	$	1,212,306	$	937,639	$	1,296,382	$	3,002,064	$	80,535	$	16,519,394
Pass-Watch		68,421		19,467		31,598		45,846		27,188		69,310		52,850		5,714		320,394
Special    Mention		17,536		2,683		10,296		12,410		10,669		3,656		9,603		6,243		73,096
Substandard		43,895		43,494		36,763		14,664		28,337		16,125		20,358		10,482		214,118
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial    Loans	$	5,076,311	$	3,073,804	$	2,114,506	$	1,285,226	$	1,003,833	$	1,385,473	$	3,084,875	$	102,974	$	17,127,002
Residential    Mortgage and    Consumer Loans:
Performing	$	580,813	$	467,497	$	355,833	$	223,494	$	320,344	$	892,361	$	1,120,461	$	5,995		3,966,798
Nonperforming		565		951		2,018		4,465		4,719		24,365		1,432		1,967		40,482
Total Consumer    Loans	$	581,378	$	468,448	$	357,851	$	227,959	$	325,063	$	916,726	$	1,121,893	$	7,962	$	4,007,280

Residential Mortgage Loans in Process of Foreclosure

Loans in process of foreclosure include those for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. Included in loans are $4.9 million and $4.4 million of consumer loans secured by single family residential mortgage real estate that are in process of foreclosure as of December 31, 2022 and 2021, respectively. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $0.4 million and $2.4 million of foreclosed single family residential properties in other real estate owned as of December 31, 2022 and 2021, respectively.

Loans Held for Sale

Loans held for sale totaled $26.4 million and $93.1 million, respectively, at December 31, 2022 and 2021. At December 31, 2022, residential mortgage loans carried at the fair value option totaled $10.8 million with an unpaid principal balance of $10.6 million. All other loans held for sale are carried at lower of cost or market.