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Loans

3 Months Ended

Mar. 31, 2020

Note 5 — Loans

The following is a summary of total loans:


	March 31,		December 31,		March 31,
(Dollars in thousands)	2020		2019		2019
Loans:
Commercial non-owner occupied real estate:
Construction and land development	$	1,105,308	$	1,017,261	$	946,503
Commercial non-owner occupied		2,371,371		2,323,967		2,329,449
Total commercial non-owner occupied real estate		3,476,679		3,341,228		3,275,952
Consumer real estate:
Consumer owner occupied		2,665,405		2,706,960		2,731,499
Home equity loans		758,482		758,020		791,658
Total consumer real estate		3,423,887		3,464,980		3,523,157
Commercial owner occupied real estate		2,177,738		2,158,701		2,086,662
Commercial and industrial		1,418,421		1,386,327		1,251,719
Other income producing property		327,696		346,554		380,177
Consumer		674,791		663,422		610,231
Other loans		7,678		13,892		18,224
Total loans		11,506,890		11,375,104		11,146,122
Less allowance for credit losses		(144,785)		(61,991)		(56,522)
Loans, net	$	11,362,105	$	11,313,113	$	11,089,600

In accordance with the adoption of ASU 2016-13, the above table reflects the loan portfolio at the amortized cost basis for the current period March 31, 2020, to include net deferred cost of $817,693 and unamortized discount total related to loans acquired of $52.2 million. Accrued interest receivable (AIR) of $30.2 million is accounted for separately and reported in other assets. The allowance for credit losses in the comparative periods includes the day 2 valuation allowance on the acquired credit impaired loans, which was $5.1 million at December 31, 2019 and $4.5 million at March 31, 2019.

The comparative periods in the above table reflect the loan portfolio prior to the adoption of ASU 2016-13. Prior periods were reported as shown in the below tables, with the acquired loans being net of earned income and of related discounts, which includes the credit discount on the acquired credit impaired loans.

The following is a summary of non-acquired loans for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,		March 31,
(Dollars in thousands)	2019		2019
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	968,360	$	810,551
Commercial non-owner occupied		1,811,138		1,615,416
Total commercial non-owner occupied real estate		2,779,498		2,425,967
Consumer real estate:
Consumer owner occupied		2,118,839		2,005,314
Home equity loans		518,628		508,326
Total consumer real estate		2,637,467		2,513,640
Commercial owner occupied real estate		1,784,017		1,601,360
Commercial and industrial		1,280,859		1,072,070
Other income producing property		218,617		214,235
Consumer		538,481		465,117
Other loans		13,892		18,224
Total non-acquired loans		9,252,831		8,310,613
Less allowance for loan losses		(56,927)		(52,008)
Non-acquired loans, net	$	9,195,904	$	8,258,605

The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,		March 31,
(Dollars in thousands)	2019		2019
Acquired non-credit impaired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	33,569	$	113,572
Commercial non-owner occupied		447,441		629,394
Total commercial non-owner occupied real estate		481,010		742,966
Consumer real estate:
Consumer owner occupied		496,431		610,376
Home equity loans		188,732		225,278
Total consumer real estate		685,163		835,654
Commercial owner occupied real estate		307,193		400,658
Commercial and industrial		101,880		173,840
Other income producing property		95,697		120,696
Consumer		89,484		104,923
Acquired non-credit impaired loans	$	1,760,427	$	2,378,737

The unamortized discount related to the acquired non-credit impaired loans totaled $20.3 million and $30.2 million at December 31, 2019, and March 31, 2019, respectively.

In accordance with FASB ASC Topic 310-30, we aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,		March 31,
(Dollars in thousands)	2019		2019
Acquired credit impaired loans:
Commercial real estate	$	130,938	$	173,707
Commercial real estate—construction and development		25,032		32,257
Residential real estate		163,359		199,701
Consumer		35,488		40,182
Commercial and industrial		7,029		10,925
Acquired credit impaired loans		361,846		456,772
Less allowance for loan losses		(5,064)		(4,514)
Acquired credit impaired loans, net	$	356,782	$	452,258

As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

We utilize a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

The following table presents the credit risk profile by risk grade of commercial loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$ 78,673	$ 307,578	$ 232,414	$ 47,764	$ 18,265	$ 19,662	$ 39,789	$ 744,145
Special mention	1,967	954	1,439	535	160	693	-	5,748
Substandard	885	943	558	1,195	51	430	-	4,062
Doubtful	-	-	-	-	-	9	-	9
Total Construction and land development	$ 81,525	$ 309,475	$ 234,411	$ 49,494	$ 18,476	$ 20,794	$ 39,789	$ 753,964
Construction and land development
Current-period gross charge-offs	$ (37)	$ -	$ -	$ -	$ -	$ -	$ -	(37)
Current-period recoveries	-	-	-	6	-	206	-	212
Current-period net (charge-offs) / recoveries	$ (37)	$ -	$ -	$ 6	$ -	$ 206	$ -	$ 175


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Commercial non-owner occupied
Risk rating:
Pass	$ 94,375	$ 637,401	$ 419,596	$ 385,069	$ 339,042	$ 381,430	$ 70,151	$ 2,327,064
Special mention	5,145	8,905	7,094	1,278	488	15,162	-	38,072
Substandard	114	524	750	2,039	505	2,299	-	6,231
Doubtful	-	-	-	-	-	4	-	4
Total Commercial non-owner occupied	$ 99,634	$ 646,830	$ 427,440	$ 388,386	$ 340,035	$ 398,895	$ 70,151	$ 2,371,371
Commercial non-owner occupied
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Current-period recoveries	-	-	-	-	-	79	-	79
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ 79	$ -	$ 79

Commercial Owner Occupied
Risk rating:
Pass	$ 149,781	$ 544,487	$ 389,294	$ 326,347	$ 278,186	$ 402,083	$ 38,039	$ 2,128,217
Special mention	2,344	3,855	4,718	6,848	6,592	4,557	154	$ 29,068
Substandard	260	6,536	2,644	5,401	606	4,651	350	$ 20,448
Doubtful	-	-	-	-	-	5	-	$ 5
Total commercial owner occupied	$ 152,385	$ 554,878	$ 396,656	$ 338,596	$ 285,384	$ 411,296	$ 38,543	$ 2,177,738
Commercial owner occupied
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ (315)	$ -	$ (315)
Current-period recoveries	-	24	5	-	-	59	-	88
Current-period net (charge-offs) / recoveries	$ -	$ 24	$ 5	$ -	$ -	$ (256)	$ -	$ (227)

Commercial and industrial
Risk rating:
Pass	$ 117,663	$ 396,201	$ 231,025	$ 118,471	$ 122,025	$ 74,688	$ 327,219	$ 1,387,292
Special mention	609	7,993	3,067	4,193	179	914	5,850	22,805
Substandard	441	675	2,039	1,519	230	598	2,810	8,312
Doubtful	-	-	1	3	3	4	1	12
Total commercial and industrial	$ 118,713	$ 404,869	$ 236,132	$ 124,186	$ 122,437	$ 76,204	$ 335,880	$ 1,418,421
Commercial and industrial
Current-period gross charge-offs	$ -	$ (3)	$ (14)	$ -	$ -	$ (9)	$ (73)	$ (99)
Current-period recoveries	-	26	-	4	75	89	4	198
Current-period net (charge-offs) / recoveries	$ -	$ 23	$ (14)	$ 4	$ 75	$ 80	$ (69)	$ 99

Other income producing property
Risk rating:
Pass	$ 17,679	$ 61,806	$ 51,950	$ 37,084	$ 23,250	$ 54,295	$ 7,829	$ 253,893
Special mention	1,675	2,300	2,163	735	661	5,848	37	13,419
Substandard	891	985	773	1,572	170	2,770	49	7,210
Doubtful	-	-	-	-	-	7	-	7
Total other income producing property	$ 20,245	$ 65,091	$ 54,886	$ 39,391	$ 24,081	$ 62,920	$ 7,915	$ 274,529
Other income producing property
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Current-period recoveries	-	-	-	-	-	139	-	139
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ 139	$ -	$ 139

Consumer owner occupied
Risk rating:
Pass	$ 1,566	$ 6,140	$ 673	$ 476	$ 1,668	$ 5,468	$ 16,657	$ 32,648
Special mention	23	4,091	254	63	-	196	366	$ 4,993
Substandard	-	394	164	91	65	409	-	$ 1,123
Doubtful	-	-	-	1	-	-	-	$ 1
Total Consumer owner occupied	$ 1,589	$ 10,625	$ 1,091	$ 631	$ 1,733	$ 6,073	$ 17,023	$ 38,765
Consumer owner occupied
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Current-period recoveries	-	-	-	23	1	5	1	30
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ 23	$ 1	$ 5	$ 1	$ 30


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Other loans
Risk rating:
Pass	$ 7,678	$ -	$ -	$ -	$ -	$ -	$ -	$ 7,678
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Doubtful	-	-	-	-	-	-	-	-
Total other loans	$ 7,678	$ -	$ -	$ -	$ -	$ -	$ -	$ 7,678
Other loans
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Current-period recoveries	-	-	-	-	-	-	-	-
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -

Total Commercial Loans
Risk rating:
Pass	$ 467,415	$ 1,953,613	$ 1,324,952	$ 915,211	$ 782,436	$ 937,626	$ 499,684	$ 6,880,937
Special mention	11,763	28,098	18,735	13,652	8,080	27,370	6,407	114,105
Substandard	2,591	10,057	6,928	11,817	1,627	11,157	3,209	47,386
Doubtful	-	-	1	4	3	29	1	38
Total Commercial Loans	$ 481,769	$ 1,991,768	$ 1,350,616	$ 940,684	$ 792,146	$ 976,182	$ 509,301	$ 7,042,466
Total Commercial Loans
Current-period gross charge-offs	$ (37)	$ (3)	$ (14)	$ -	$ -	$ (324)	$ (73)	$ (451)
Current-period recoveries	-	50	5	33	76	577	5	746
Current-period net (charge-offs) / recoveries	$ (37)	$ 47	$ (9)	$ 33	$ 76	$ 253	$ (68)	$ 295

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. The following table presents the credit risk profile by past due status of consumer loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$ 101,254	$ 373,790	$ 498,020	$ 492,026	$ 361,132	$ 789,977	$ -	$ 2,616,199
30 days past due	-	27	169	476	-	5,117	-	5,789
60 days past due	-	-	-	-	-	468	-	468
90 days past due	72	78	88	668	411	2,867	-	4,184
Total Consumer owner occupied	$ 101,326	$ 373,895	$ 498,277	$ 493,170	$ 361,543	$ 798,429	$ -	$ 2,626,640
Consumer owner occupied
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ (304)	$ -	$ (304)
Current-period recoveries	-	-	-	-	-	223	-	223
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ (81)	$ -	$ (81)

Home equity loans
Days past due:
Current	$ 1,976	$ 8,007	$ 11,699	$ 3,536	$ 429	$ 37,322	$ 687,900	$ 750,869
30 days past due	57	90	31	183	-	1,078	920	2,359
60 days past due	-	68	-	-	-	2,107	613	2,788
90 days past due	-	25	-	34	315	1,385	707	2,466
Total Home equity loans	$ 2,033	$ 8,190	$ 11,730	$ 3,753	$ 744	$ 41,892	$ 690,140	$ 758,482
Home equity loans
Current-period gross charge-offs	$ -	$ (22)	$ (260)	$ -	$ -	$ (67)	$ (265)	$ (614)
Current-period recoveries	-	-	-	1	1	375	1	378
Current-period net (charge-offs) / recoveries	$ -	$ (22)	$ (260)	$ 1	$ 1	$ 308	$ (264)	$ (236)


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer
Days past due:
Current	$ 56,854	$ 209,713	$ 117,022	$ 63,494	$ 41,965	$ 169,875	$ 10,928	$ 669,851
30 days past due	14	222	185	107	95	1,263	165	2,051
60 days past due	-	26	51	37	12	914	26	1,066
90 days past due	-	126	236	232	103	1,126	-	1,823
Total consumer	$ 56,868	$ 210,087	$ 117,494	$ 63,870	$ 42,175	$ 173,178	$ 11,119	$ 674,791
Consumer
Current-period gross charge-offs	$ -	$ (80)	$ (96)	$ (57)	$ (30)	$ (347)	$ (1,176)	$ (1,786)
Current-period recoveries	-	-	1	2	3	84	379	469
Current-period net (charge-offs) / recoveries	$ -	$ (80)	$ (95)	$ (55)	$ (27)	$ (263)	$ (797)	$ (1,317)

Construction and land development
Days past due:
Current	$ 25,564	$ 212,413	$ 68,321	$ 16,477	$ 5,830	$ 22,346	$ -	$ 350,951
30 days past due	-	-	29	-	-	237	-	266
60 days past due	-	-	-	-	-		-	-
90 days past due	-	-	-	-	-	127	-	127
Total Construction and land development	$ 25,564	$ 212,413	$ 68,350	$ 16,477	$ 5,830	$ 22,710	$ -	$ 351,344
Construction and land development
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ (68)	$ -	$ (68)
Current-period recoveries	-	-	-	-	-	70	-	70
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ 2	$ -	$ 2

Other income producing property
Days past due:
Current	$ 346	$ 2,488	$ 2,703	$ 4,537	$ 4,032	$ 38,955	-	$ 53,061
30 days past due	-	-	-	-	-	105	-	105
60 days past due	-	-	-	-	-	-	-	-
90 days past due	-	-	-	-	-	1	-	1
Total other income producing property	$ 346	$ 2,488	$ 2,703	$ 4,537	$ 4,032	$ 39,061	$ -	$ 53,167
Other income producing property
Current-period gross charge-offs	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Current-period recoveries	-	-	-	-	-	23	-	23
Current-period net (charge-offs) / recoveries	$ -	$ -	$ -	$ -	$ -	$ 23	$ -	$ 23

Total Consumer Loans
Days past due:
Current	$ 185,994	$ 806,411	$ 697,765	$ 580,070	$ 413,388	$ 1,058,475	$ 698,828	$ 4,440,931
30 days past due	71	339	414	766	95	7,800	1,085	10,570
60 days past due	-	94	51	37	12	3,489	639	4,322
90 days past due	72	229	324	934	829	5,506	707	8,601
Total Consumer Loans	$ 186,137	$ 807,073	$ 698,554	$ 581,807	$ 414,324	$ 1,075,270	$ 701,259	$ 4,464,424
Total Consumer Loans
Current-period gross charge-offs	$ -	$ (102)	$ (356)	$ (57)	$ (30)	$ (786)	$ (1,441)	$ (2,772)
Current-period recoveries	-	-	1	3	4	775	380	1,163
Current-period net (charge-offs) / recoveries	$ -	$ (102)	$ (355)	$ (54)	$ (26)	$ (11)	$ (1,061)	$ (1,609)


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Total Loans	$ 667,906	$ 2,798,841	$ 2,049,170	$ 1,522,491	$ 1,206,470	$ 2,051,452	$ 1,210,560	$ 11,506,890
Total Loans
Current-period gross charge-offs	$ (37)	$ (105)	$ (370)	$ (57)	$ (30)	$ (1,110)	$ (1,514)	$ (3,223)
Current-period recoveries	$ -	$ 50	$ 6	$ 36	$ 80	$ 1,352	$ 385	1,909
Current-period net (charge-offs) / recoveries	$ (37)	$ (55)	$ (364)	$ (21)	$ 50	$ 242	$ (1,129)	$ (1,314)

The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Construction & Development				Commercial Non-owner Occupied				Commercial Owner Occupied
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	959,206	$	801,949	$	1,787,306	$	1,607,034	$	1,754,801	$	1,564,083
Special mention		7,095		5,303		22,410		7,372		19,742		24,241
Substandard		2,059		3,299		1,422		1,010		9,474		13,036
Doubtful		—		—		—		—		—		—
	$	968,360	$	810,551	$	1,811,138	$	1,615,416	$	1,784,017	$	1,601,360


	Commercial & Industrial				Other Income Producing Property				Commercial Total
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
	2019		2019		2019		2019		2019		2019
Pass	$	1,256,465	$	1,054,732	$	213,291	$	208,345	$	5,971,069	$	5,236,143
Special mention		16,055		7,056		3,966		4,250		69,268		48,222
Substandard		8,339		10,282		1,360		1,640		22,654		29,267
Doubtful		—		—		—		—		—		—
	$	1,280,859	$	1,072,070	$	218,617	$	214,235	$	6,062,991	$	5,313,632

The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Consumer Owner Occupied				Home Equity				Consumer
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	2,094,080	$	1,978,122	$	508,054	$	495,127	$	536,002	$	463,271
Special mention		9,585		10,769		4,490		6,915		487		467
Substandard		15,174		16,423		6,084		6,284		1,992		1,379
Doubtful		—		—		—		—		—		—
	$	2,118,839	$	2,005,314	$	518,628	$	508,326	$	538,481	$	465,117


	Other				Consumer Total
	December 31, 2019		March 31, 2019		December 31, 2019		March 31, 2019
Pass	$	13,892	$	18,224	$	3,152,028	$	2,954,744
Special mention		—		—		14,562		18,151
Substandard		—		—		23,250		24,086
Doubtful		—		—		—		—
	$	13,892	$	18,224	$	3,189,840	$	2,996,981

The following table presents the credit risk profile by risk grade of total non-acquired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Total Non-acquired Loans
	December 31,		March 31,
(Dollars in thousands)	2019		2019
Pass	$	9,123,097	$	8,190,887
Special mention		83,830		66,373
Substandard		45,904		53,353
Doubtful		—		—
	$	9,252,831	$	8,310,613

The following table presents the credit risk profile by risk grade of commercial loans for acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


					Commercial Non-owner
	Construction & Development				Occupied				Commercial Owner Occupied
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	31,690	$	111,414	$	432,710	$	615,277	$	300,678	$	380,536
Special mention		966		845		14,162		13,682		3,092		15,440
Substandard		913		1,313		569		435		3,423		4,682
Doubtful		—		—		—		—		—		—
	$	33,569	$	113,572	$	447,441	$	629,394	$	307,193	$	400,658


					Other Income Producing
	Commercial & Industrial				Property				Commercial Total
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
	2019		2019		2019		2019		2019		2019
Pass	$	97,092	$	163,298	$	87,892	$	113,047	$	950,062	$	1,383,572
Special mention		2,948		7,897		5,837		6,333		27,005		44,197
Substandard		1,840		2,645		1,968		1,316		8,713		10,391
Doubtful		—		—		—		—		—		—
	$	101,880	$	173,840	$	95,697	$	120,696	$	985,780	$	1,438,160

The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Consumer Owner Occupied				Home Equity				Consumer
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	486,433	$	597,220	$	174,912	$	210,066	$	86,535	$	101,907
Special mention		6,434		7,325		5,679		7,623		654		666
Substandard		3,564		5,831		8,141		7,589		2,295		2,350
Doubtful		—		—		—		—		—		—
	$	496,431	$	610,376	$	188,732	$	225,278	$	89,484	$	104,923


	Consumer Total
	December 31,		March 31,
	2019		2019
Pass	$	747,880	$	909,193
Special mention		12,767		15,614
Substandard		14,000		15,770
Doubtful		—		—
	$	774,647	$	940,577

The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


	Total Acquired
	Non-credit Impaired Loans
	December 31,		March 31,
(Dollars in thousands)	2019		2019
Pass	$	1,697,942	$	2,292,765
Special mention		39,772		59,811
Substandard		22,713		26,161
Doubtful		—		—
	$	1,760,427	$	2,378,737

The following table presents the credit risk profile by risk grade of acquired credit impaired loans (identified as credit-impaired at the time of acquisition), net of the related discount for comparative periods, prior to the adoption of ASU 2016-13, under the incurred loss model:


					Commercial Real Estate—
					Construction and
	Commercial Real Estate				Development
	December 31,		March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2019		2019		2019
Pass	$	108,762	$	140,785	$	17,756	$	20,950
Special mention		6,465		13,025		2,904		3,500
Substandard		15,711		19,897		4,372		7,807
Doubtful		—		—		—		—
	$	130,938	$	173,707	$	25,032	$	32,257


	Residential Real Estate				Consumer				Commercial & Industrial
	December 31,		March 31,		December 31,		March 31,		December 31,		March 31,
	2019		2019		2019		2019		2019		2019
Pass	$	82,203	$	100,803	$	4,483	$	5,134	$	5,160	$	6,802
Special mention		35,968		40,036		12,658		13,935		286		530
Substandard		45,188		58,862		18,347		21,113		1,583		3,593
Doubtful		—		—		—		—		—		—
	$	163,359	$	199,701	$	35,488	$	40,182	$	7,029	$	10,925


	Total Acquired
	Credit Impaired Loans
	December 31,		March 31,
	2019		2019
Pass	$	218,364	$	274,474
Special mention		58,281		71,026
Substandard		85,201		111,272
Doubtful		—		—
	$	361,846	$	456,772

The risk grading of acquired credit impaired loans is determined utilizing a loan’s contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value.

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class:

30 - 59 Days

60 - 89 Days

90+ Days

Total

Amortized Cost

(Dollars in thousands)

Past Due

Current

Loans

> 90 Days Accruing

March 31, 2020

Commercial real estate:

Construction and land development

1,700

364

2,131

1,103,177

1,105,308

—

Commercial non-owner occupied

1,445

407

1,818

3,670

2,367,701

2,371,371

—

Commercial owner occupied

5,606

156

5,168

10,930

2,166,808

2,177,738

119

Consumer real estate:

Consumer owner occupied

6,047

467

4,408

10,922

2,654,483

2,665,405

—

Home equity loans

2,359

2,788

2,466

7,613

750,869

758,482

—

Commercial and industrial

2,128

2,220

1,054

5,402

1,413,019

1,418,421

167

Other income producing property

1,338

143

1,707

3,188

324,508

327,696

Consumer

2,570

1,069

1,825

5,464

669,327

674,791

Other loans

—

7,678

—

23,193

7,317

18,810

49,320

11,457,570

11,506,890

362

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for non-acquired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	321	$	39	$	255	$	615	$	967,745	$	968,360
Commercial non-owner occupied		114		—		299		413		1,810,725		1,811,138
Commercial owner occupied		4,011		636		2,302		6,949		1,777,068		1,784,017
Consumer real estate:
Consumer owner occupied		1,157		285		2,424		3,866		2,114,973		2,118,839
Home equity loans		1,343		39		562		1,944		516,684		518,628
Commercial and industrial		5,531		100		649		6,280		1,274,579		1,280,859
Other income producing property		208		—		457		665		217,952		218,617
Consumer		825		285		826		1,936		536,545		538,481
Other loans		25		3		—		28		13,864		13,892
	$	13,535	$	1,387	$	7,774	$	22,696	$	9,230,135	$	9,252,831
March 31, 2019
Commercial real estate:
Construction and land development	$	563	$	141	$	283	$	987	$	809,564	$	810,551
Commercial non-owner occupied		—		—		22		22		1,615,394		1,615,416
Commercial owner occupied		3,336		1,556		889		5,781		1,595,579		1,601,360
Consumer real estate:
Consumer owner occupied		1,929		743		2,510		5,182		2,000,132		2,005,314
Home equity loans		333		206		1,022		1,561		506,765		508,326
Commercial and industrial		4,658		222		614		5,494		1,066,576		1,072,070
Other income producing property		658		—		372		1,030		213,205		214,235
Consumer		471		230		677		1,378		463,739		465,117
Other loans		—		—		—		—		18,224		18,224
	$	11,948	$	3,098	$	6,389	$	21,435	$	8,289,178	$	8,310,613

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for acquired non-credit impaired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	20	$	—	$	256	$	276	$	33,293	$	33,569
Commercial non-owner occupied		144		1,146		76		1,366		446,075		447,441
Commercial owner occupied		890		702		698		2,290		304,903		307,193
Consumer real estate:
Consumer owner occupied		768		151		414		1,333		495,098		496,431
Home equity loans		369		55		1,154		1,578		187,154		188,732
Commercial and industrial		93		204		17		314		101,566		101,880
Other income producing property		378		4,309		551		5,238		90,459		95,697
Consumer		485		613		423		1,521		87,963		89,484
	$	3,147	$	7,180	$	3,589	$	13,916	$	1,746,511	$	1,760,427
March 31, 2019
Commercial real estate:
Construction and land development	$	521	$	116	$	226	$	863	$	112,709	$	113,572
Commercial non-owner occupied		96		—		289		385		629,009		629,394
Commercial owner occupied		659		237		1,209		2,105		398,553		400,658
Consumer real estate:
Consumer owner occupied		349		72		1,968		2,389		607,987		610,376
Home equity loans		1,483		298		2,237		4,018		221,260		225,278
Commercial and industrial		1,185		1,479		18		2,682		171,158		173,840
Other income producing property		210		81		37		328		120,368		120,696
Consumer		337		107		396		840		104,083		104,923
	$	4,840	$	2,390	$	6,380	$	13,610	$	2,365,127	$	2,378,737

The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for acquired credit impaired loans, for comparative periods, prior to the adoption of ASU 2016-13:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
December 31, 2019
Commercial real estate	$	2,283	$	—	$	2,659	$	4,942	$	125,996	$	130,938
Commercial real estate—construction and development		—		—		393		393		24,639		25,032
Residential real estate		2,838		976		5,571		9,385		153,974		163,359
Consumer		820		283		534		1,637		33,851		35,488
Commercial and industrial		118		910		75		1,103		5,926		7,029
	$	6,059	$	2,169	$	9,232	$	17,460	$	344,386	$	361,846
March 31, 2019
Commercial real estate	$	788	$	238	$	3,959	$	4,985	$	168,722	$	173,707
Commercial real estate—construction and development		—		—		2,481		2,481		29,776		32,257
Residential real estate		2,529		1,034		6,385		9,948		189,753		199,701
Consumer		373		190		591		1,154		39,028		40,182
Commercial and industrial		—		—		2,514		2,514		8,411		10,925
	$	3,690	$	1,462	$	15,930	$	21,082	$	435,690	$	456,772

The following is a summary of information pertaining to nonaccrual loans by class, including restructured loans:

December 31,

March 31,

Greater than

Non-accrual

(Dollars in thousands)

2019

2020

90 Days Accruing

with no allowance

Commercial non-owner occupied real estate:

Construction and land development

1,193

1,294

—

Commercial non-owner occupied

1,154

2,863

—

2,010

Total commercial non-owner occupied real estate

2,347

4,157

—

2,010

Consumer real estate:

Consumer owner occupied

9,718

19,614

—

3,972

Home equity loans

4,640

8,891

—

3,002

Total consumer real estate

14,358

28,505

—

6,974

Commercial owner occupied real estate

4,385

9,498

119

5,490

Commercial and industrial

6,913

4,834

167

1,304

Other income producing property

1,947

4,343

2,554

Consumer

3,191

5,004

345

Total loans on nonaccrual status

33,141

56,341

362

18,677

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 2 – Summary of Significant Accounting Policies for further detailed on individually evaluated loans. The increase in the nonaccrual balance in the above schedule, compared to December 31, 2019, is primarily due to the addition of $21.0 million, formerly accounted for as credit impaired loans, prior to the adoption of ASU 2016-13. These loans were previously excluded from nonaccrual loans. The adoption of CECL resulted in the discontinuation of the pool-level accounting for acquired credit impaired loans and replaced it with loan-level evaluation for nonaccrual status.

The following is a summary of information pertaining to non-acquired nonaccrual loans by class, including restructured loans, for comparative periods, prior to the adoption of ASU 2016-13:

sc
	December 31,		March 31,
(Dollars in thousands)	2019		2019
Commercial non-owner occupied real estate:
Construction and land development	$	363	$	414
Commercial non-owner occupied		732		505
Total commercial non-owner occupied real estate		1,095		919
Consumer real estate:
Consumer owner occupied		7,202		7,658
Home equity loans		1,468		2,666
Total consumer real estate		8,670		10,324
Commercial owner occupied real estate		3,482		1,215
Commercial and industrial		4,092		286
Other income producing property		798		596
Consumer		1,587		1,244
Restructured loans		2,578		830
Total loans on nonaccrual status	$	22,302	$	15,414

The following is a summary of information pertaining to acquired non-credit impaired nonaccrual loans by class, including restructured loans, for comparative periods, prior to the adoption of ASU 2016-13:


	December 31,		March 31,
(Dollars in thousands)	2019		2019
Commercial non-owner occupied real estate:
Construction and land development	$	699	$	1,114
Commercial non-owner occupied		393		289
Total commercial non-owner occupied real estate		1,092		1,403
Consumer real estate:
Consumer owner occupied		2,350		3,693
Home equity loans		3,067		4,750
Total consumer real estate		5,417		8,443
Commercial owner occupied real estate		903		1,664
Commercial and industrial		722		915
Other income producing property		1,101		205
Consumer		1,604		1,664
Total loans on nonaccrual status	$	10,839	$	14,294

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:

December 31,

Collateral

March 31,

Collateral

(Dollars in thousands)

2019

Coverage

2020

Coverage

Commercial non-owner occupied

Hotel

245

846

345%

245

1,476

602%

Office

1,045

1,800

172%

1,045

1,350

129%

Other

398

648

163%

398

608

153%

Retail

299

1,269

424%

294

1,269

432%

Commercial owner occupied real estate

Industrial

738

1,103

149%

738

1,103

149%

Office

1,076

1,485

138%

1,076

1,485

138%

Other

3,303

7,285

221%

3,676

8,581

233%

Consumer owner occupied

Other

5,413

9,286

172%

4,250

6,040

142%

Home equity loans

Other

1,768

2,679

152%

3,002

4,513

150%

Commercial and industrial

Industrial

291

702

241%

—

Other

3,696

8,442

228%

1,710

4,389

257%

Other income producing property

Other

3,212

10,186

317%

2,209

6,898

312%

Consumer

Other

363

525

145%

345

525

152%

Total collateral dependent loans

21,847

46,256

18,988

38,237

The Bank designates individually evaluated loans (excluding TDRs) on non-accrual with a net book balance of $250,000 or greater as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. Under ASC 326-20-35-6, the Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The significant changes above in collateral percentage are due to appraisal value updates or changes in the number of loans within the asset class and collateral type.

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a TDR, sometimes referred to herein as a restructured loan, has occurred. The Bank designates loan modifications as TDRs when it grants a concession to a borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. See Note 2 – Summary of Significant Accounting Policies for how such modifications are factored into the determination of the ACL.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). In prior periods our TDR levels were deemed to be immaterial, therefore no comparative data is shown.

The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the three months ended March 31, 2020.


	Three Months Ended March 31,
	2020
		Pre-Modification	Post-Modification
	Number	Amortized	Amortized
(Dollars in thousands)	of loans	Cost	Cost
Interest rate modification
Construction and land development	2	$106	$106
Commercial non-owner occupied	--	--	--
Commercial owner occupied	--	--	--
Consumer owner occupied	1	30	30
Home equity loans	--	--	--
Commercial and industrial	6	782	782
Other income producing property	1	345	345
Consumer	--	--	--
Other loans	--	--	--
Total interest rate modifications	10	$1,263	$1,263
Term modification
Construction and land development	-	$--	$--
Commercial non-owner occupied	--	--	--
Commercial owner occupied	--	--	--
Consumer owner occupied	1	52	52
Home equity loans	1	52	52
Commercial and industrial	1	284	284
Other income producing property	--	--	--
Consumer	--	--	--
Other loans	--	--	--
Total term modifications	3	$388	$388
	13	$ 1,651	$ 1,651

At March 31, 2020, the balance of accruing TDRs was $10.9 million. The Company had $1.1 million remaining availability under commitments to lend additional funds on restructured loans at March 31, 2020. The amount of specific reserve associated with restructured loans was $1.1 million at March 31, 2020.

The following table presents the changes in status of loans restructured within the previous 12 months as of March 31, 2020 by type of concession. The change in accrual status in this case had no impact on the expected credit losses.

Paying Under

Restructured Terms

Converted to Nonaccrual

Foreclosures and Defaults

Number

Amortized

Number

Amortized

Number

Amortized

(Dollars in thousands)

of Loans

Cost

of Loans

Cost

of Loans

Cost

Interest rate modification

$ 2,787

$1,349

$--

Term modification

905

$ 3,692

$1,349

$--