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Loans

9 Months Ended

Sep. 30, 2020

Note 6 — Loans

The following is a summary of total loans:


	September 30,		December 31,		September 30,
(Dollars in thousands)	2020		2019		2019
Loans:
Construction and land development	$	1,840,111	$	1,017,261	$	1,025,387
Commercial non-owner occupied		5,936,372		2,323,967		2,357,730
Commercial owner occupied real estate		4,846,020		2,158,701		2,093,795
Consumer owner occupied		4,311,186		2,706,960		2,760,126
Home equity loans		1,347,798		758,020		773,363
Commercial and industrial		5,419,120		1,386,327		1,261,527
Other income producing property		629,497		346,554		361,879
Consumer		900,171		663,422		654,883
Other loans		7,540		13,892		1,457
Total loans		25,237,815		11,375,104		11,290,147
Less allowance for credit losses		(440,159)		(61,991)		(60,255)
Loans, net	$	24,797,656	$	11,313,113	$	11,229,892

(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans.

(2)

Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as 1-4 family investment rental property.

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 September 30, 2020, to include net deferred cost of $50.5 million and unamortized discount total related to loans acquired of $110.4 million. Accrued interest receivable (AIR) of $97.8 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 $5.3 million at September 30, 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 unearned 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,		September 30,
(Dollars in thousands)	2019		2019
Non-acquired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	968,360	$	955,318
Commercial non-owner occupied		1,811,138		1,777,327
Total commercial non-owner occupied real estate		2,779,498		2,732,645
Consumer real estate:
Consumer owner occupied		2,118,839		2,118,127
Home equity loans		518,628		521,744
Total consumer real estate		2,637,467		2,639,871
Commercial owner occupied real estate		1,784,017		1,677,695
Commercial and industrial		1,280,859		1,130,847
Other income producing property		218,617		220,957
Consumer		538,481		525,040
Other loans		13,892		1,457
Total non-acquired loans		9,252,831		8,928,512
Less allowance for loan losses		(56,927)		(54,937)
Non-acquired loans, net	$	9,195,904	$	8,873,575

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,		September 30,
(Dollars in thousands)	2019		2019
Acquired non-credit impaired loans:
Commercial non-owner occupied real estate:
Construction and land development	$	33,569	$	53,302
Commercial non-owner occupied		447,441		503,443
Total commercial non-owner occupied real estate		481,010		556,745
Consumer real estate:
Consumer owner occupied		496,431		543,432
Home equity loans		188,732		198,112
Total consumer real estate		685,163		741,544
Commercial owner occupied real estate		307,193		345,040
Commercial and industrial		101,880		126,092
Other income producing property		95,697		103,093
Consumer		89,484		93,089
Acquired non-credit impaired loans	$	1,760,427	$	1,965,603

The unamortized discount related to the acquired non-credit impaired loans totaled $20.3 million and $24.2 million at December 31, 2019, and September 30, 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,		September 30,
(Dollars in thousands)	2019		2019
Acquired credit impaired loans:
Commercial real estate	$	130,938	$	149,134
Commercial real estate—construction and development		25,032		26,930
Residential real estate		163,359		175,044
Consumer		35,488		36,812
Commercial and industrial		7,029		8,112
Acquired credit impaired loans		361,846		396,032
Less allowance for loan losses		(5,064)		(5,318)
Acquired credit impaired loans, net	$	356,782	$	390,714

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.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner occupied loans are on investment or rental 1-4 properties.

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 September 30, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$ 310,705	$ 417,268	$ 162,696	$ 87,830	$ 44,234	$ 62,987	$ 17,572	$ 1,103,292
Special mention	3,873	24,986	434	1,640	4,273	8,469	-	43,675
Substandard	355	2,815	856	1,921	654	3,847	-	10,448
Doubtful	-	-	-	-	-	8	-	8
Total Construction and land development	$ 314,933	$ 445,069	$ 163,986	$ 91,391	$ 49,161	$ 75,311	$ 17,572	$ 1,157,423

Commercial non-owner occupied
Risk rating:
Pass	$ 549,564	$ 1,105,865	$ 878,410	$ 705,532	$ 725,339	$ 1,303,140	$ 59,442	$ 5,327,292
Special mention	41,358	76,702	106,855	46,660	35,293	131,472	-	438,340
Substandard	1,317	49,669	8,127	27,310	38,636	45,677	-	170,736
Doubtful	-	-	-	-	-	4	-	4
Total Commercial non-owner occupied	$ 592,239	$ 1,232,236	$ 993,392	$ 779,502	$ 799,268	$ 1,480,293	$ 59,442	$ 5,936,372

Commercial Owner Occupied
Risk rating:
Pass	$ 623,490	$ 979,946	$ 752,860	$ 627,298	$ 489,093	$ 1,122,413	$ 35,709	$ 4,630,809
Special mention	4,836	13,658	14,252	14,814	14,729	48,751	97	111,137
Substandard	4,089	4,992	3,796	23,326	15,075	52,441	350	104,069
Doubtful	-	-	-	-	-	5	-	5
Total commercial owner occupied	$ 632,415	$ 998,596	$ 770,908	$ 665,438	$ 518,897	$ 1,223,610	$ 36,156	$ 4,846,020

Commercial and industrial
Risk rating:
Pass	$ 2,944,353	$ 630,152	$ 484,117	$ 339,940	$ 237,691	$ 456,125	$ 227,613	$ 5,319,991
Special mention	9,431	6,959	3,768	7,772	2,791	26,921	11,600	69,242
Substandard	526	867	7,513	7,573	3,388	7,159	2,850	29,876
Doubtful	-	1	1	3	3	2	1	11
Total commercial and industrial	$ 2,954,310	$ 637,979	$ 495,399	$ 355,288	$ 243,873	$ 490,207	$ 242,064	$ 5,419,120

Other income producing property
Risk rating:
Pass	$ 86,891	$ 93,360	$ 79,172	$ 64,528	$ 74,821	$ 138,341	$ 6,425	$ 543,538
Special mention	2,649	1,249	1,875	238	885	12,637	100	19,633
Substandard	633	909	849	1,213	996	13,808	47	18,455
Doubtful	-	-	-	-	-	6	-	6
Total other income producing property	$ 90,173	$ 95,518	$ 81,896	$ 65,979	$ 76,702	$ 164,792	$ 6,572	$ 581,632

Consumer owner occupied
Risk rating:
Pass	$ 6,990	$ 4,951	$ 612	$ 357	$ 1,564	$ 1,604	$ 13,321	$ 29,399
Special mention	29	3,613	251	65	-	140	304	4,402
Substandard	121	389	143	89	6	341	-	1,089
Doubtful	-	-	-	-	-	-	-	-
Total Consumer owner occupied	$ 7,140	$ 8,953	$ 1,006	$ 511	$ 1,570	$ 2,085	$ 13,625	$ 34,890

Other loans
Risk rating:
Pass	$ 7,540	$ -	$ -	$ -	$ -	$ -	$ -	$ 7,540
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Doubtful	-	-	-	-	-	-	-	-
Total other loans	$ 7,540	$ -	$ -	$ -	$ -	$ -	$ -	$ 7,540

Total Commercial Loans
Risk rating:
Pass	$ 4,529,533	$ 3,231,542	$ 2,357,867	$ 1,825,485	$ 1,572,742	$ 3,084,610	$ 360,082	$ 16,961,861
Special mention	62,176	127,167	127,435	71,189	57,971	228,390	12,101	686,429
Substandard	7,041	59,641	21,284	61,432	58,755	123,273	3,247	334,673
Doubtful	-	1	1	3	3	25	1	34
Total Commercial Loans	$ 4,598,750	$ 3,418,351	$ 2,506,587	$ 1,958,109	$ 1,689,471	$ 3,436,298	$ 375,431	$ 17,982,997

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. Construction and land development loans are on 1-4 properties and lots. 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 September 30, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$ 683,682	$ 702,582	$ 635,065	$ 580,141	$ 444,876	$ 1,212,359	$ -	$ 4,258,705
30 days past due	-	63	237	116	68	2,736	-	3,220
60 days past due	246	330	1,824	134	516	1,445	-	4,495
90 days past due	-	337	364	1,279	905	6,991	-	9,876
Total Consumer owner occupied	$ 683,928	$ 703,312	$ 637,490	$ 581,670	$ 446,365	$ 1,223,531	$ -	$ 4,276,296

Home equity loans
Days past due:
Current	$ 6,134	$ 6,972	$ 8,988	$ 1,758	$ 442	$ 31,746	$ 1,282,226	$ 1,338,266
30 days past due	155	-	-	289	7	314	2,752	3,517
60 days past due	-	6	-	-	-	49	600	655
90 days past due	-	68	-	157	315	3,165	1,655	5,360
Total Home equity loans	$ 6,289	$ 7,046	$ 8,988	$ 2,204	$ 764	$ 35,274	$ 1,287,233	$ 1,347,798

Consumer
Days past due:
Current	$ 229,845	$ 229,491	$ 132,566	$ 74,318	$ 46,477	$ 161,134	$ 21,285	$ 895,116
30 days past due	100	326	243	117	124	934	19	1,863
60 days past due	36	44	68	105	22	646	18	939
90 days past due	47	82	340	161	156	1,466	1	2,253
Total consumer	$ 230,028	$ 229,943	$ 133,217	$ 74,701	$ 46,779	$ 164,180	$ 21,323	$ 900,171

Construction and land development
Days past due:
Current	$ 262,567	$ 269,667	$ 86,778	$ 24,277	$ 7,238	$ 31,980	$ -	$ 682,507
30 days past due	13	-	-	-	-	14	-	27
60 days past due	-	-	-	-	-	47	-	47
90 days past due	-	-	-	-	-	107	-	107
Total Construction and land development	$ 262,580	$ 269,667	$ 86,778	$ 24,277	$ 7,238	$ 32,148	$ -	$ 682,688

Other income producing property
Days past due:
Current	$ 3,226	$ 1,791	$ 2,441	$ 4,091	$ 3,065	$ 33,236	$ -	$ 47,850
30 days past due	-	-	-	-	-	-	-	-
60 days past due	-	-	-	-	-	-	-	-
90 days past due	-	-	-	-	-	15	-	15
Total other income producing property	$ 3,226	$ 1,791	$ 2,441	$ 4,091	$ 3,065	$ 33,251	$ -	$ 47,865

Total Consumer Loans
Days past due:
Current	$ 1,185,454	$ 1,210,503	$ 865,838	$ 684,585	$ 502,098	$ 1,470,455	$ 1,303,511	$ 7,222,444
30 days past due	268	389	480	522	199	3,998	2,771	8,627
60 days past due	282	380	1,892	239	538	2,187	618	6,136
90 days past due	47	487	704	1,597	1,376	11,744	1,656	17,611
Total Consumer Loans	$ 1,186,051	$ 1,211,759	$ 868,914	$ 686,943	$ 504,211	$ 1,488,384	$ 1,308,556	$ 7,254,818


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of September 30, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Total Loans	$ 5,784,801	$ 4,630,110	$ 3,375,501	$ 2,645,052	$ 2,193,682	$ 4,924,682	$ 1,683,987	$ 25,237,815

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,		September 30,		December 31,		September 30,		December 31,		September 30,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	959,206	$	947,230	$	1,787,306	$	1,768,013	$	1,754,801	$	1,648,456
Special mention		7,095		5,601		22,410		7,091		19,742		17,319
Substandard		2,059		2,487		1,422		2,223		9,474		11,920
Doubtful		—		—		—		—		—		—
	$	968,360	$	955,318	$	1,811,138	$	1,777,327	$	1,784,017	$	1,677,695


	Commercial & Industrial				Other Income Producing Property				Commercial Total
	December 31,		September 30,		December 31,		September 30,		December 31,		September 30,
	2019		2019		2019		2019		2019		2019
Pass	$	1,256,465	$	1,103,532	$	213,291	$	215,624	$	5,971,069	$	5,682,855
Special mention		16,055		18,148		3,966		3,922		69,268		52,081
Substandard		8,339		9,167		1,360		1,411		22,654		27,208
Doubtful		—		—		—		—		—		—
	$	1,280,859	$	1,130,847	$	218,617	$	220,957	$	6,062,991	$	5,762,144

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,		September 30,		December 31,		September 30,		December 31,		September 30,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	2,094,080	$	2,091,129	$	508,054	$	510,508	$	536,002	$	522,674
Special mention		9,585		9,054		4,490		5,373		487		421
Substandard		15,174		17,944		6,084		5,863		1,992		1,945
Doubtful		—		—		—		—		—		—
	$	2,118,839	$	2,118,127	$	518,628	$	521,744	$	538,481	$	525,040


	Other				Consumer Total
	December 31, 2019		September 30, 2019		December 31, 2019		September 30, 2019
Pass	$	13,892	$	1,457	$	3,152,028	$	3,125,768
Special mention		—		—		14,562		14,848
Substandard		—		—		23,250		25,752
Doubtful		—		—		—		—
	$	13,892	$	1,457	$	3,189,840	$	3,166,368

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,		September 30,
(Dollars in thousands)	2019		2019
Pass	$	9,123,097	$	8,808,623
Special mention		83,830		66,929
Substandard		45,904		52,960
Doubtful		—		—
	$	9,252,831	$	8,928,512

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,		September 30,		December 31,		September 30,		December 31,		September 30,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	31,690	$	51,340	$	432,710	$	492,258	$	300,678	$	330,005
Special mention		966		736		14,162		5,035		3,092		3,427
Substandard		913		1,226		569		6,150		3,423		11,608
Doubtful		—		—		—		—		—		—
	$	33,569	$	53,302	$	447,441	$	503,443	$	307,193	$	345,040


					Other Income Producing
	Commercial & Industrial				Property				Commercial Total
	December 31,		September 30,		December 31,		September 30,		December 31,		September 30,
	2019		2019		2019		2019		2019		2019
Pass	$	97,092	$	120,926	$	87,892	$	95,611	$	950,062	$	1,090,140
Special mention		2,948		4,051		5,837		5,937		27,005		19,186
Substandard		1,840		1,115		1,968		1,545		8,713		21,644
Doubtful		—		—		—		—		—		—
	$	101,880	$	126,092	$	95,697	$	103,093	$	985,780	$	1,130,970

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,		September 30,		December 31,		September 30,		December 31,		September 30,
(Dollars in thousands)	2019		2019		2019		2019		2019		2019
Pass	$	486,433	$	532,760	$	174,912	$	184,946	$	86,535	$	90,076
Special mention		6,434		6,805		5,679		5,405		654		574
Substandard		3,564		3,867		8,141		7,761		2,295		2,439
Doubtful		—		—		—		—		—		—
	$	496,431	$	543,432	$	188,732	$	198,112	$	89,484	$	93,089


	Consumer Total
	December 31,		September 30,
	2019		2019
Pass	$	747,880	$	807,782
Special mention		12,767		12,784
Substandard		14,000		14,067
Doubtful		—		—
	$	774,647	$	834,633

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,		September 30,
(Dollars in thousands)	2019		2019
Pass	$	1,697,942	$	1,897,922
Special mention		39,772		31,970
Substandard		22,713		35,711
Doubtful		—		—
	$	1,760,427	$	1,965,603

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,		September 30,		December 31,		September 30,
(Dollars in thousands)	2019		2019		2019		2019
Pass	$	108,762	$	121,264	$	17,756	$	18,978
Special mention		6,465		9,064		2,904		3,018
Substandard		15,711		18,806		4,372		4,934
Doubtful		—		—		—		—
	$	130,938	$	149,134	$	25,032	$	26,930


	Residential Real Estate				Consumer				Commercial & Industrial
	December 31,		September 30,		December 31,		September 30,		December 31,		September 30,
	2019		2019		2019		2019		2019		2019
Pass	$	82,203	$	88,131	$	4,483	$	4,696	$	5,160	$	5,703
Special mention		35,968		36,901		12,658		12,723		286		471
Substandard		45,188		50,012		18,347		19,393		1,583		1,938
Doubtful		—		—		—		—		—		—
	$	163,359	$	175,044	$	35,488	$	36,812	$	7,029	$	8,112


	Total Acquired
	Credit Impaired Loans
	December 31,		September 30,
	2019		2019
Pass	$	218,364	$	238,772
Special mention		58,281		62,177
Substandard		85,201		95,083
Doubtful		—		—
	$	361,846	$	396,032

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 accruing loans, segregated by class:

30 - 59 Days

60 - 89 Days

90+ Days

Total

(Dollars in thousands)

Past Due

Current

Non-Accruing

Loans

September 30, 2020

Construction and land development

2,028

245

—

2,273

1,836,193

1,645

1,840,111

Commercial non-owner occupied

604

—

625

5,928,700

7,047

5,936,372

Commercial owner occupied

1,150

859

526

2,535

4,812,672

30,813

4,846,020

Consumer owner occupied

2,184

4,494

6,679

4,271,410

33,097

4,311,186

Home equity loans

1,997

476

379

2,852

1,333,516

11,430

1,347,798

Commercial and industrial

10,728

1,507

632

12,867

5,393,529

12,724

5,419,120

Other income producing property

1,261

—

1,261

620,112

8,124

629,497

Consumer

1,653

969

2,626

891,531

6,014

900,171

Other loans

—

7,540

—

7,540

21,605

8,571

1,542

31,718

25,095,203

110,894

25,237,815

The following table presents an aging analysis of past due accruing 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		Non-Accruing		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	321	$	34	$	—	$	355	$	967,511	$	494	$	968,360
Commercial non-owner occupied		114		—		—		114		1,810,264		760		1,811,138
Commercial owner occupied		3,218		553		—		3,771		1,776,764		3,482		1,784,017
Consumer real estate:
Consumer owner occupied		752		—		—		752		2,110,719		7,368		2,118,839
Home equity loans		1,343		39		—		1,382		515,673		1,573		518,628
Commercial and industrial		2,097		100		110		2,307		1,272,360		6,192		1,280,859
Other income producing property		208		—		404		612		217,159		846		218,617
Consumer		690		201		—		891		536,003		1,587		538,481
Other loans		25		3		—		28		13,864				13,892
	$	8,768	$	930	$	514	$	10,212	$	9,220,317	$	22,302	$	9,252,831
September 30, 2019
Commercial real estate:
Construction and land development	$	194	$	17	$	—	$	211	$	954,558	$	549	$	955,318
Commercial non-owner occupied		173		—		299		472		1,776,366		489		1,777,327
Commercial owner occupied		2,818		1,588		—		4,406		1,669,227		4,062		1,677,695
Consumer real estate:
Consumer owner occupied		1,390		79		—		1,469		2,109,103		7,555		2,118,127
Home equity loans		425		237		—		662		519,701		1,381		521,744
Commercial and industrial		1,209		327		30		1,566		1,126,682		2,599		1,130,847
Other income producing property		115		181		—		296		219,981		680		220,957
Consumer		558		114		—		672		522,829		1,539		525,040
Other loans		—		—		—		—		1,457		—		1,457
	$	6,882	$	2,543	$	329	$	9,754	$	8,899,904	$	18,854	$	8,928,512

The following table presents an aging analysis of past due accruing 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		Non-Accruing		Loans
December 31, 2019
Commercial real estate:
Construction and land development	$	20	$	—	$	92	$	112	$	32,758	$	699	$	33,569
Commercial non-owner occupied		144		1,146		76		1,366		445,682		393		447,441
Commercial owner occupied		890		702		—		1,592		304,698		903		307,193
Consumer real estate:
Consumer owner occupied		637		24		59		720		493,361		2,350		496,431
Home equity loans		232		55		—		287		185,378		3,067		188,732
Commercial and industrial		93		204		—		297		100,861		722		101,880
Other income producing property		378		4,309		48		4,735		89,861		1,101		95,697
Consumer		364		191		—		555		87,325		1,604		89,484
	$	2,758	$	6,631	$	275	$	9,664	$	1,739,924	$	10,839	$	1,760,427
September 30, 2019
Commercial real estate:
Construction and land development	$	323	$	—	$	—	$	323	$	51,948	$	1,031	$	53,302
Commercial non-owner occupied		697		—		—		697		502,480		266		503,443
Commercial owner occupied		2,400		168		—		2,568		341,539		933		345,040
Consumer real estate:
Consumer owner occupied		807		—		—		807		540,886		1,739		543,432
Home equity loans		438		107		—		545		194,533		3,034		198,112
Commercial and industrial		857		32		—		889		124,511		692		126,092
Other income producing property		1,008		292		—		1,300		101,523		270		103,093
Consumer		446		33		—		479		90,979		1,631		93,089
	$	6,976	$	632	$	—	$	7,608	$	1,948,399	$	9,596	$	1,965,603

The following table presents an aging analysis of past due accruing 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
September 30, 2019
Commercial real estate	$	444	$	252	$	2,671	$	3,367	$	145,767	$	149,134
Commercial real estate—construction and development		88		—		261		349		26,581		26,930
Residential real estate		2,317		1,143		5,016		8,476		166,568		175,044
Consumer		948		185		499		1,632		35,180		36,812
Commercial and industrial		282		—		77		359		7,753		8,112
	$	4,079	$	1,580	$	8,524	$	14,183	$	381,849	$	396,032

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

December 31,

September 30,

Greater than

Non-accrual

(Dollars in thousands)

2019

2020

90 Days Accruing⁽¹⁾

with no allowance⁽¹⁾

Construction and land development

1,193

1,645

—

537

Commercial non-owner occupied

1,154

7,047

—

2,683

Commercial owner occupied real estate

4,385

30,813

526

12,165

Consumer owner occupied

9,718

33,097

467

Home equity loans

4,640

11,430

379

1,281

Commercial and industrial

6,913

12,724

632

1,131

Other income producing property

1,947

8,124

—

1,180

Consumer

3,191

6,014

—

Total loans on nonaccrual status

33,141

110,894

1,542

19,444

(1)

– Greater than 90 days accruing and non-accrual with no allowance loans at September 30, 2020.

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 mainly due to the addition of nonaccrual loans of $69.3 million through the merger with CSFL in the second quarter. The increase was also partially due to the addition of $21.0 million of PCD loans, 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 ASU 2016-13 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:


	December 31,		September 30,
(Dollars in thousands)	2019		2019
Commercial non-owner occupied real estate:
Construction and land development	$	363	$	412
Commercial non-owner occupied		732		457
Total commercial non-owner occupied real estate		1,095		869
Consumer real estate:
Consumer owner occupied		7,202		7,374
Home equity loans		1,468		1,273
Total consumer real estate		8,670		8,647
Commercial owner occupied real estate		3,482		4,062
Commercial and industrial		4,092		2,565
Other income producing property		798		628
Consumer		1,587		1,539
Restructured loans		2,578		544
Total loans on nonaccrual status	$	22,302	$	18,854

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,		September 30,
(Dollars in thousands)	2019		2019
Commercial non-owner occupied real estate:
Construction and land development	$	699	$	1,031
Commercial non-owner occupied		393		266
Total commercial non-owner occupied real estate		1,092		1,297
Consumer real estate:
Consumer owner occupied		2,350		1,739
Home equity loans		3,067		3,034
Total consumer real estate		5,417		4,773
Commercial owner occupied real estate		903		933
Commercial and industrial		722		692
Other income producing property		1,101		270
Consumer		1,604		1,631
Total loans on nonaccrual status	$	10,839	$	9,596

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			September 30,		Collateral
(Dollars in thousands)	2019		Coverage		%	2020		Coverage		%
Commercial non-owner occupied
Church	$	245	$	846	345%	$	—	$	—
Office		1,045		1,800	172%		2,683		3,654	136%
Other		398		648	163%		—		—
Retail		299		1,269	424%		—		—
Commercial owner occupied real estate
Church		—		—			1,943		1,984	102%
Industrial		738		1,103	149%		—		—
Office		1,076		1,485	138%		2,389		3,510	147%
Retail		—		—			4,327		5,490	127%
Other		3,303		7,285	221%		1,050		1,075	102%
Consumer owner occupied
Other		5,413		9,286	172%		—		—
Home equity loans
Other		1,768		2,679	152%		1,178		1,578	134%
Commercial and industrial
Industrial		291		702	241%		—		—
Other		3,696		8,442	228%		—		—
Other income producing property
Other		3,212		10,186	317%		1,180		4,622	392%
Consumer
Other		363		525	145%		—		—
Total collateral dependent loans	$	21,847	$	46,256		$	14,750	$	21,913

The Bank designates individually evaluated loans (excluding TDRs) on non-accrual with a net book balance exceeding the designated threshold 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. Overall collateral dependent loans decreased by $7.1 million from December 31, 2019 compared to the balance at September 30, 2020.

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 Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession meets the criteria stipulated in the CARES Act. Details in regards to the Company’s implemented loan modification programs in response to the COVID-19 pandemic under the CARES Act is disclosed under the Note 2 – Summary of Significant Accounting Policies.

The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the three and nine months ended September 30, 2020.


	Three Months Ended September 30, 2020
		Pre-Modification	Post-Modification
	Number	Amortized	Amortized
(Dollars in thousands)	of loans	Cost	Cost
Interest rate modification
Construction and land development	--	$--	$--
Commercial non-owner occupied	--	--	--
Commercial owner occupied	1	4,637	4,637
Consumer owner occupied	--	--	--
Home equity loans	--	--	--
Commercial and industrial	2	336	336
Other income producing property	1	61	61
Consumer	--	--	--
Other loans	--	--	--
Total interest rate modifications	4	$5,034	$5,034
Term modification
Construction and land development	--	$--	$--
Commercial non-owner occupied	--	--	--
Commercial owner occupied	1	185	185
Consumer owner occupied	1	72	72
Home equity loans	--	--	--
Commercial and industrial	2	295	295
Other income producing property	--	--	--
Consumer	3	120	120
Other loans	--	--	--
Total term modifications	7	$672	$672
	11	$ 5,706	$ 5,706


	Nine Months Ended September 30, 2020
		Pre-Modification	Post-Modification
	Number	Amortized	Amortized
(Dollars in thousands)	of loans	Cost	Cost
Interest rate modification
Construction and land development	2	$99	$99
Commercial non-owner occupied
Commercial owner occupied	2	5,842	5,842
Consumer owner occupied	1	29	29
Home equity loans
Commercial and industrial	8	859	859
Other income producing property	1	61	61
Consumer
Other loans
Total interest rate modifications	14	$6,890	$6,890
Term modification
Construction and land development	--	$--	$--
Commercial non-owner occupied	--	--	--
Commercial owner occupied	1	185	185
Consumer owner occupied	5	591	591
Home equity loans	1	51	51
Commercial and industrial	3	563	563
Other income producing property
Consumer	3	120	120
Other loans	--	--	--
Total term modifications	13	$1,510	$1,510
	27	$ 8,400	$ 8,400

At September 30, 2020, the balance of accruing TDRs was $16.2 million. The Company had $1.6 million remaining availability under commitments to lend additional funds on restructured loans at September 30, 2020. The amount of specific reserve associated with restructured loans was $1.2 at September 30, 2020.

The following table presents the changes in status of loans restructured within the previous 12 months as of September 30, 2020 by type of concession. The subsequent default 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	15	$ 6,923	--	$--	--	$--
Term modification	14	1,482	--	--	1	268
	29	$ 8,405	--	$--	1	$268