Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans and Allowance for Credit Losses

3. Loans and Allowance for Credit Losses

The Company generally makes loans in its market areas of southern and central Mississippi; southern and central Alabama; northwest, central and southern Louisiana; the northern, central and panhandle regions of Florida; certain areas of east and northeast Texas; and the metropolitan areas of Nashville, Tennessee and Atlanta, Georgia.

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 $125.4 million and $124.7 million at March 31, 2024 and December 31, 2023, respectively. The following table presents loans, net of unearned income, by portfolio class at March 31, 2024 and December 31, 2023.

	March 31,		December 31,
($ in thousands)	2024		2023
Commercial non-real estate	$	9,926,333	$	9,957,284
Commercial real estate - owner occupied		3,080,192		3,093,763
Total commercial and industrial		13,006,525		13,051,047
Commercial real estate - income producing		4,042,797		3,986,943
Construction and land development		1,541,773		1,551,091
Residential mortgages		3,983,321		3,886,072
Consumer		1,396,522		1,446,764
Total loans	$	23,970,938	$	23,921,917

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 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.

Allowance for Credit Losses

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 macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period.

The following tables present activity in the allowance for credit losses (ACL) by portfolio class for the three months ended March 31, 2024 and 2023, as well as the corresponding recorded investment in loans at the end of each period.

				Commercial			Total			Commercial
	Commercial			real estate-			commercial			real estate-			Construction
	non-real			owner			and			income			and land			Residential
($ in thousands)	estate			occupied			industrial			producing			development			mortgages			Consumer			Total
	Three Months Ended March 31, 2024
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	101,737		$	40,197		$	141,934		$	74,539		$	27,039		$	38,983		$	25,412		$	307,907
Charge-offs		(9,630	)		—			(9,630	)		(8,819	)		(75	)		(56	)		(4,786	)		(23,366	)
Recoveries		13,104			102			13,206			3			61			202			914			14,386
Net provision for loan losses		(853	)		(1,021	)		(1,874	)		12,154			(1,187	)		2,029			3,677			14,799
Ending balance - allowance for loan losses	$	104,358		$	39,278		$	143,636		$	77,877		$	25,838		$	41,158		$	25,217		$	313,726
Reserve for unfunded lending commitments:
Beginning balance	$	5,507		$	327		$	5,834		$	1,344		$	20,019		$	30		$	1,667		$	28,894
Provision for losses on unfunded commitments		192			(40	)		152			(352	)		(1,615	)		(8	)		(8	)		(1,831	)
Ending balance - reserve for unfunded lending commitments		5,699			287			5,986			992			18,404			22			1,659			27,063
Total allowance for credit losses	$	110,057		$	39,565		$	149,622		$	78,869		$	44,242		$	41,180		$	26,876		$	340,789
Allowance for loan losses:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		104,358			39,278			143,636			77,877			25,838			41,158			25,217			313,726
Allowance for loan losses	$	104,358		$	39,278		$	143,636		$	77,877		$	25,838		$	41,158		$	25,217		$	313,726
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		5,699			287			5,986			992			18,404			22			1,659			27,063
Reserve for unfunded lending commitments:	$	5,699		$	287		$	5,986		$	992		$	18,404		$	22		$	1,659		$	27,063
Total allowance for credit losses	$	110,057		$	39,565		$	149,622		$	78,869		$	44,242		$	41,180		$	26,876		$	340,789
Loans:
Individually evaluated	$	11,255		$	739		$	11,994		$	23,436		$	928		$	—		$	818		$	37,176
Collectively evaluated		9,915,078			3,079,453			12,994,531			4,019,361			1,540,845			3,983,321			1,395,704			23,933,762
Total loans	$	9,926,333		$	3,080,192		$	13,006,525		$	4,042,797		$	1,541,773		$	3,983,321		$	1,396,522		$	23,970,938

The Company utilized the February 2024 Moody’s forecasts in the computation of the March 31, 2024 allowance for credit losses, which was the most current available at that time. The Company incorporated certain qualitative factors in the computation of the allowance for credit loss to account for factors not captured in the Moody’s macroeconomic forecast. The Moody's 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.

In arriving at the allowance for credit losses at March 31, 2024, the Company weighted Moody’s February 2024 baseline economic forecast at 40% and downside mild recessionary S-2 scenario at 60%. The February 2024 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 without precipitating a recession. The S-2 scenario is less optimistic compared to the baseline, with the assumed combination of risk of a federal shutdown, rising political tensions, continuing elevated inflation, and reduced credit availability leading to a forecasted mild recession beginning in the second quarter of 2024 and lasting for three quarters.

The modest increase in the allowance for loan losses at March 31, 2024 compared to December 31, 2023, reflects a relatively consistent credit loss outlook and continued focus on risks that impact certain segments within the Company’s loan portfolio. The decline in the reserve for unfunded commitments compared to December 31, 2023 was largely volume driven.

				Commercial			Total			Commercial
	Commercial			real estate-			commercial			real estate-		Construction
	non-real			owner			and			income		and land			Residential
($ in thousands)	estate			occupied			industrial			producing		development			mortgages			Consumer			Total
	Three Months Ended March 31, 2023
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	96,461		$	48,284		$	144,745		$	71,961	$	30,498		$	32,464		$	28,121		$	307,789
Charge-offs		(4,528	)		—			(4,528	)		—		(61	)		(20	)		(3,363	)		(7,972	)
Recoveries		1,033			195			1,228			—		6			181			838			2,253
Net provision for loan losses		(320	)		(813	)		(1,133	)		4,231		459			1,916			1,842			7,315
Ending balance - allowance for loan losses	$	92,646		$	47,666		$	140,312		$	76,192	$	30,902		$	34,541		$	27,438		$	309,385
Reserve for unfunded lending commitments:
Beginning balance	$	4,984		$	302		$	5,286		$	1,395	$	25,110		$	31		$	1,487		$	33,309
Provision for losses on unfunded commitments		(191	)		22			(169	)		493		(1,487	)		(14	)		(118	)		(1,295	)
Ending balance - reserve for unfunded lending commitments		4,793			324			5,117			1,888		23,623			17			1,369			32,014
Total allowance for credit losses	$	97,439		$	47,990		$	145,429		$	78,080	$	54,525		$	34,558		$	28,807		$	341,399
Allowance for loan losses:
Individually evaluated	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Collectively evaluated		92,646			47,666			140,312			76,192		30,902			34,541			27,438			309,385
Allowance for loan losses	$	92,646		$	47,666		$	140,312		$	76,192	$	30,902		$	34,541		$	27,438		$	309,385
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Collectively evaluated		4,793			324			5,117			1,888		23,623			17			1,369			32,014
Reserve for unfunded lending commitments:	$	4,793		$	324		$	5,117		$	1,888	$	23,623		$	17		$	1,369		$	32,014
Total allowance for credit losses	$	97,439		$	47,990		$	145,429		$	78,080	$	54,525		$	34,558		$	28,807		$	341,399
Loans:
Individually evaluated	$	10,273		$	684		$	10,957		$	1,120	$	—		$	1,135		$	—		$	13,212
Collectively evaluated		10,003,209			3,050,064			13,053,273			3,757,335		1,726,916			3,328,658			1,525,129			23,391,311
Total loans	$	10,013,482		$	3,050,748		$	13,064,230		$	3,758,455	$	1,726,916		$	3,329,793		$	1,525,129		$	23,404,523

The allowance for credit loss for the three months ended March 31, 2023, was up slightly when compared to December 31, 2022, with modest increases in the Commercial Real Estate Income Producing and Residential Mortgage portfolios that were largely offset by declines across the remaining portfolios. Positive economic indicators of growth within the Company's footprint, relatively stable asset quality metrics and modest credit losses in recent periods led to relatively flat reserves for the quarter. In arriving at the allowance for credit losses at March 31, 2023, the Company weighted the baseline economic forecast at 40%, the downside S-2 mild recession scenario at 50%, and the S-3 more severe recession scenario at 10%.

Nonaccrual loans and certain reportable modified loan disclosures

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

	March 31, 2024				December 31, 2023
($ in thousands)	Total nonaccrual		Nonaccrual without allowance for loan loss		Total nonaccrual		Nonaccrual without allowance for loan loss
Commercial non-real estate	$	17,487	$	11,255	$	20,840	$	13,637
Commercial real estate - owner occupied		2,197		739		2,228		—
Total commercial and industrial		19,684		11,994		23,068		13,637
Commercial real estate - income producing		24,066		23,436		461		—
Construction and land development		2,228		928		815		—
Residential mortgages		25,924		—		26,137		—
Consumer		10,180		818		8,555		—
Total loans	$	82,082	$	37,176	$	59,036	$	13,637

As a part of our loss mitigation efforts, we may provide modifications to borrowers experiencing financial difficulty to improve long-term collectability of the loans and to avoid the need for repossession or foreclosure of collateral. Nonaccrual loans include reportable nonaccruing modified loans to borrowers experiencing financial difficulty (“MEFDs”) totaling $0.2 million and $0.1 million at March 31, 2024 and December 31, 2023, respectively. Total reportable MEFDs, both accruing and nonaccruing, were $37.6 million and $24.5 million at March 31, 2024 and December 31, 2023, respectively. The Company had unfunded commitments to borrowers whose

loan terms have been modified as a reportable MEFD totaling $10.8 million and $0.7 million at March 31, 2024 and December 31, 2023, respectively.

The tables below provide detail by portfolio class for reportable MEFDs entered into during the three months ended March 31, 2024 and 2023. Modified facilities are reflected only once in each table based on the type of modification or combination of modification.

	Three Months Ended March 31, 2024
	Term extension					Significant payment delay					Term extensions and significant payment delay
($ in thousands)	Balance		Percentage of portfolio			Balance		Percentage of portfolio			Balance		Percentage of portfolio
Commercial non-real estate	$	17,846		0.18	%	$	—		—		$	5,275		0.05	%
Commercial real estate - owner occupied		—		—			—		—			—		—
Total commercial and industrial		17,846		0.14	%		—		—			5,275		0.04	%
Commercial real estate - income producing		—		—			1,573		0.04	%		—		—
Construction and land development		—		—			—		—			—		—
Residential mortgages		1,893		0.05	%		—		—			—		—
Consumer		113		0.01	%		—		—			—		—
Total reportable modified loans	$	19,852		0.08	%	$	1,573		0.01	%	$	5,275		0.02	%

	Three Months Ended March 31, 2023
	Term extension					Significant payment delay				Term extensions and significant payment delay
($ in thousands)	Balance		Percentage of portfolio			Balance		Percentage of portfolio		Balance		Percentage of portfolio
Commercial non-real estate	$	934		0.01	%	$	—		—	$	—		—
Commercial real estate - owner occupied		684		0.02	%		—		—		—		—
Total commercial and industrial		1,618		0.01	%		—		—		—		—
Commercial real estate - income producing		—		—			—		—		—		—
Construction and land development		—		—			—		—		—		—
Residential mortgages		—		—			—		—		—		—
Consumer		—		—			—		—		—		—
Total reportable modified loans	$	1,618		0.01	%	$	—		—	$	—		—

Reportable modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024 consisted of weighted average term extensions totaling approximately eight months for commercial loans, eight years for residential mortgage loans and four years for consumer loans. The weighted average term of other than insignificant payment delays during the three months ended March 31, 2024 was four months for commercial loans. Reportable modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 consisted of weighted average term extensions totaling one month for commercial loans. Reported term extensions and payment delays are considered more than insignificant if they exceeded six months when considering other modifications made in the past twelve months

The tables below present the aging analysis of reportable modifications to borrowers experiencing financial difficulty by portfolio class at March 31, 2024 and December 31, 2023.

March 31, 2024	30-59 days past due		60-89 days past due		Greater than 90 days past due		Total past due		Current		Total reportable modified Loans
(in thousands)
Commercial non-real estate	$	—	$	5,791	$	178	$	5,969	$	25,473	$	31,442
Commercial real estate - owner occupied		—		955		—		955		806		1,761
Total commercial and industrial		—		6,746		178		6,924		26,279		33,203
Commercial real estate - income producing		—		—		—		—		1,573		1,573
Construction and land development		—		—		—		—		84		84
Residential mortgages		222		—		—		222		2,125		2,347
Consumer		197		—		—		197		188		385
Total reportable modified loans	$	419	$	6,746	$	178	$	7,343	$	30,249	$	37,592

December 31, 2023	30-59 days past due		60-89 days past due		Greater than 90 days past due		Total past due		Current		Total reportable modified Loans
(in thousands)
Commercial non-real estate	$	3,149	$	233	$	4,430	$	7,812	$	14,145	$	21,957
Commercial real estate - owner occupied		—		—		—		—		1,774		1,774
Total commercial and industrial		3,149		233		4,430		7,812		15,919		23,731
Commercial real estate - income producing		—		—		—		—		—		—
Construction and land development		—		—		—		—		85		85
Residential mortgages		66		—		—		66		390		456
Consumer		—		—		—		—		274		274
Total reportable modified loans	$	3,215	$	233	$	4,430	$	7,878	$	16,668	$	24,546

There were three commercial non-real estate loans totaling $3.2 million with a reportable term extension modification that had a post modification payment default during the three month period ended March 31, 2024. There were no post modification payment defaults within the three month period ended March 31, 2023. A payment default occurs if the loan is either 90 days or more delinquent or has been charged off as of the end of the period presented.

Aging Analysis

The tables below present the aging analysis of past due loans by portfolio class at March 31, 2024 and December 31, 2023.

March 31, 2024	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 still accruing
($ in thousands)
Commercial non-real estate	$	7,152	$	8,450	$	13,837	$	29,439	$	9,896,894	$	9,926,333	$	1,863
Commercial real estate - owner occupied		1,751		1,979		2,608		6,338		3,073,854		3,080,192		421
Total commercial and industrial		8,903		10,429		16,445		35,777		12,970,748		13,006,525		2,284
Commercial real estate - income producing		204		23,436		3,701		27,341		4,015,456		4,042,797		3,128
Construction and land development		851		147		2,285		3,283		1,538,490		1,541,773		381
Residential mortgages		49,842		2,763		19,549		72,154		3,911,167		3,983,321		125
Consumer		10,290		7,639		6,008		23,937		1,372,585		1,396,522		2,020
Total	$	70,090	$	44,414	$	47,988	$	162,492	$	23,808,446	$	23,970,938	$	7,938

December 31, 2023	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 still accruing
($ in thousands)
Commercial non-real estate	$	12,311	$	4,381	$	21,132	$	37,824	$	9,919,460	$	9,957,284	$	5,782
Commercial real estate - owner occupied		1,614		1,596		1,715		4,925		3,088,838		3,093,763		431
Total commercial and industrial		13,925		5,977		22,847		42,749		13,008,298		13,051,047		6,213
Commercial real estate - income producing		3,938		606		408		4,952		3,981,991		3,986,943		—
Construction and land development		1,655		1,220		1,208		4,083		1,547,008		1,551,091		742
Residential mortgages		40,189		9,121		18,960		68,270		3,817,802		3,886,072		172
Consumer		11,059		5,957		6,611		23,627		1,423,137		1,446,764		2,482
Total	$	70,766	$	22,881	$	50,034	$	143,681	$	23,778,236	$	23,921,917	$	9,609

Credit Quality Indicators

The following tables present the credit quality indicators by segment and portfolio class of loans at March 31, 2024 and December 31, 2023. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process.

	March 31, 2024
($ 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	$	9,407,861	$	2,988,192	$	12,396,053	$	3,862,625	$	1,521,518	$	17,780,196
Pass-Watch		255,418		63,335		318,753		134,248		18,027		471,028
Special Mention		25,058		17,667		42,725		6,714		—		49,439
Substandard		237,996		10,998		248,994		39,210		2,228		290,432
Doubtful		—		—		—		—		—		—
Total	$	9,926,333	$	3,080,192	$	13,006,525	$	4,042,797	$	1,541,773	$	18,591,095

	December 31, 2023
($ 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	$	9,524,018	$	3,016,277	$	12,540,295	$	3,799,004	$	1,542,460	$	17,881,759
Pass-Watch		234,211		52,027		286,238		139,932		7,460		433,630
Special Mention		11,486		6,647		18,133		40,826		356		59,315
Substandard		187,569		18,812		206,381		7,181		815		214,377
Doubtful		—		—		—		—		—		—
Total	$	9,957,284	$	3,093,763	$	13,051,047	$	3,986,943	$	1,551,091	$	18,589,081

	March 31, 2024						December 31, 2023
($ in thousands)	Residential mortgage		Consumer		Total		Residential mortgage		Consumer		Total
Performing	$	3,957,398	$	1,386,342	$	5,343,740	$	3,859,935	$	1,438,209	$	5,298,144
Nonperforming		25,923		10,180		36,103		26,137		8,555		34,692
Total	$	3,983,321	$	1,396,522	$	5,379,843	$	3,886,072	$	1,446,764	$	5,332,836

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 the 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.

•Nonperforming – loans for which there are good reasons to doubt that payments will be made in full. Nonperforming loans include all loans with nonaccrual status.

Vintage Analysis

The following tables present credit quality disclosures of amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing at March 31, 2024 and December 31, 2023. The Company defines vintage as the later of origination, renewal or modification date. The gross charge-offs presented in the tables that follow are for the three months ended March 31, 2024 and the year ended December 31, 2023.

	Term Loans														Revolving Loans
March 31, 2024	Amortized Cost Basis by Origination Year												Revolving		Converted to
($ in thousands)	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Total
Commercial Non-Real Estate:
Pass	$	356,133	$	1,456,018	$	1,709,790	$	1,018,785	$	426,293	$	1,242,580	$	3,154,253	$	44,009	$	9,407,861
Pass-Watch		1,548		55,622		21,358		27,428		19,555		26,843		102,356		708		255,418
Special Mention		11,035		2,640		499		11		124		806		9,800		143		25,058
Substandard		6,540		35,643		79,983		18,194		7,984		3,308		80,505		5,839		237,996
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	375,256	$	1,549,923	$	1,811,630	$	1,064,418	$	453,956	$	1,273,537	$	3,346,914	$	50,699	$	9,926,333
Gross Charge-offs	$	—	$	3,907	$	850	$	106	$	51	$	1,483	$	2,323	$	910	$	9,630
Commercial Real Estate - Owner Occupied:
Pass	$	60,032	$	368,653	$	676,512	$	605,118	$	492,383	$	744,599	$	40,598	$	297	$	2,988,192
Pass-Watch		—		2,978		24,790		9,816		5,317		19,747		687		—		63,335
Special Mention		—		—		—		187		—		17,330		150		—		17,667
Substandard		—		958		4,660		1,588		1,363		2,136		293		—		10,998
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	60,032	$	372,589	$	705,962	$	616,709	$	499,063	$	783,812	$	41,728	$	297	$	3,080,192
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate - Income Producing:
Pass	$	54,025	$	504,820	$	937,290	$	1,017,973	$	625,603	$	653,818	$	64,938	$	4,158	$	3,862,625
Pass-Watch		13,301		6,622		4,047		4,163		70,889		33,226		2,000		—		134,248
Special Mention		—		448		—		—		—		6,266		—		—		6,714
Substandard		—		4,086		34,278		286		—		560		—		—		39,210
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	67,326	$	515,976	$	975,615	$	1,022,422	$	696,492	$	693,870	$	66,938	$	4,158	$	4,042,797
Gross Charge-offs	$	—	$	—	$	8,819	$	—	$	—	$	—	$	—	$	—	$	8,819
Construction and Land Development:
Pass	$	70,758	$	418,296	$	635,714	$	176,967	$	36,935	$	21,652	$	156,207	$	4,989	$	1,521,518
Pass-Watch		—		1,385		11,727		4,416		64		230		205		—		18,027
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		433		1,073		97		43		286		296		—		2,228
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	70,758	$	420,114	$	648,514	$	181,480	$	37,042	$	22,168	$	156,708	$	4,989	$	1,541,773
Gross Charge-offs	$	—	$	—	$	75	$	—	$	—	$	—	$	—	$	—	$	75
Residential Mortgage:
Performing	$	67,697	$	414,407	$	1,012,153	$	946,874	$	479,252	$	1,033,398	$	3,617	$	—	$	3,957,398
Nonperforming		—		911		2,941		4,277		286		17,508		—		—		25,923
Total	$	67,697	$	415,318	$	1,015,094	$	951,151	$	479,538	$	1,050,906	$	3,617	$	—	$	3,983,321
Gross Charge-offs	$	—	$	—	$	—	$	2	$	—	$	54	$	—	$	—	$	56
Consumer Loans:
Performing	$	27,375	$	56,206	$	53,824	$	32,622	$	24,841	$	71,041	$	1,111,067	$	9,366	$	1,386,342
Nonperforming		20		92		712		899		863		5,118		250		2,226		10,180
Total	$	27,395	$	56,298	$	54,536	$	33,521	$	25,704	$	76,159	$	1,111,317	$	11,592	$	1,396,522
Gross Charge-offs	$	—	$	635	$	832	$	404	$	49	$	315	$	2,040	$	511	$	4,786

	Term Loans														Revolving Loans
December 31, 2023	Amortized Cost Basis by Origination Year												Revolving		Converted to
($ in thousands)	2023		2022		2021		2020		2019		Prior		Loans		Term Loans		Total
Commercial Non-Real Estate:
Pass	$	1,557,202	$	1,812,370	$	1,106,433	$	483,739	$	398,626	$	923,143	$	3,186,189	$	56,316	$	9,524,018
Pass-Watch		30,360		60,228		20,730		8,245		4,988		9,117		94,252		6,291		234,211
Special Mention		411		6,206		936		27		26		836		2,620		424		11,486
Substandard		48,264		48,178		18,882		8,058		3,079		1,660		54,453		4,995		187,569
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	1,636,237	$	1,926,982	$	1,146,981	$	500,069	$	406,719	$	934,756	$	3,337,514	$	68,026	$	9,957,284
Gross Charge-offs	$	7,885	$	1,179	$	1,484	$	27,000	$	81	$	1,750	$	11,971	$	8,480	$	59,830
Commercial Real Estate - Owner Occupied:
Pass	$	374,466	$	689,626	$	620,272	$	501,054	$	284,032	$	493,707	$	40,533	$	12,587	$	3,016,277
Pass-Watch		2,574		9,587		9,654		3,451		8,791		17,581		389		—		52,027
Special Mention		837		—		617		—		110		5,083		—		—		6,647
Substandard		2,322		4,956		967		1,295		584		7,374		1,314		—		18,812
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	380,199	$	704,169	$	631,510	$	505,800	$	293,517	$	523,745	$	42,236	$	12,587	$	3,093,763
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate - Income Producing:
Pass	$	456,334	$	953,501	$	966,402	$	618,003	$	323,344	$	367,010	$	65,486	$	48,924	$	3,799,004
Pass-Watch		9,469		3,064		3,886		75,182		23,827		22,504		2,000		—		139,932
Special Mention		156		32,255		—		354		—		8,061		—		—		40,826
Substandard		4,086		1,921		286		—		122		766		—		—		7,181
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	470,045	$	990,741	$	970,574	$	693,539	$	347,293	$	398,341	$	67,486	$	48,924	$	3,986,943
Gross Charge-offs	$	73	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	73
Construction and Land Development:
Pass	$	388,453	$	676,687	$	248,036	$	62,086	$	6,008	$	18,834	$	139,587	$	2,769	$	1,542,460
Pass-Watch		3,067		2,820		827		83		128		323		212		—		7,460
Special Mention		294		—		—		—		62		—		—		—		356
Substandard		—		87		96		49		9		279		295		—		815
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	391,814	$	679,594	$	248,959	$	62,218	$	6,207	$	19,436	$	140,094	$	2,769	$	1,551,091
Gross Charge-offs	$	—	$	7	$	54	$	—	$	—	$	11	$	—	$	—	$	72
Residential Mortgage:
Performing	$	439,024	$	910,361	$	950,400	$	489,262	$	176,041	$	891,232	$	3,615	$	—	$	3,859,935
Nonperforming		561		2,233		3,260		730		2,366		16,987		—		—		26,137
Total	$	439,585	$	912,594	$	953,660	$	489,992	$	178,407	$	908,219	$	3,615	$	—	$	3,886,072
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	55	$	—	$	—	$	55
Consumer Loans:
Performing	$	75,615	$	59,454	$	36,693	$	28,076	$	31,802	$	39,150	$	1,144,401	$	23,018	$	1,438,209
Nonperforming		176		237		245		438		445		2,528		369		4,117		8,555
Total	$	75,791	$	59,691	$	36,938	$	28,514	$	32,247	$	41,678	$	1,144,770	$	27,135	$	1,446,764
Gross Charge-offs	$	567	$	2,388	$	1,473	$	215	$	573	$	824	$	7,735	$	1,618	$	15,393

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 at March 31, 2024 and December 31, 2023 were $6.1 million and $7.1 million, respectively, of consumer loans secured by single family residential real estate that were in process of foreclosure. In addition to the single family residential real estate loans in process of foreclosure, the Company also held foreclosed single family residential properties in other real estate owned totaling $0.8 million at March 31, 2024 and $1.6 million at December 31, 2023.

Loans Held for Sale

Loans held for sale totaled $16.5 million and $26.1 million at March 31, 2024 and December 31, 2023, respectively. Loans held for sale is composed primarily of residential mortgage loans originated for sale in the secondary market. At March 31, 2024, residential mortgage loans carried at the fair value option totaled $15.2 million with an unpaid principal balance of $14.8 million. At December 31, 2023, residential mortgage loans carried at the fair value option totaled $13.3 million with an unpaid principal balance of $12.9 million. All other loans held for sale are carried at the lower of cost or market.