Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Allowance for Credit Losses

The following tables summarize activity in the allowance for credit losses for the years ended December 31, 2021 and 2020 and the allowance for loan losses for the year ended December 31, 2019.

	Year ended December 31, 2021
(Dollars in thousands)	Commercial		Consumer		PCD		Total
Balance at January 1	$	80,842	$	119,485	$	23,987	$	224,314
Benefit	(1,228)		(21,278)		(14,329)		(36,835)
Charge-offs	(15,924)		(17,181)		(2,317)		(35,422)
Recoveries	7,523		11,452		7,461		26,436
Balance at December 31	$	71,213	$	92,478	$	14,802	$	178,493
	Year ended December 31, 2020
(Dollars in thousands)	Commercial		Consumer		PCD		Total
Balance at January 1	$	142,369	$	75,236	$	7,536	$	225,141
Adoption of ASC 326	(87,554)		30,629		19,001		(37,924)
Balance at January 1	54,815		105,865		26,537		187,217
Provision (benefit)	37,763		27,791		(7,202)		58,352
Initial allowance on PCD loans	—		—		1,193		1,193
Charge-offs	(17,586)		(24,219)		(3,300)		(45,105)
Recoveries	5,850		10,048		6,759		22,657
Balance at December 31	$	80,842	$	119,485	$	23,987	$	224,314
	Year ended December 31, 2019
(Dollars in thousands)	Commercial		Consumer		PCI		Total
Balance at January 1	$	139,043	$	75,525	$	9,144	$	223,712
Provision (benefit)	13,386		19,663		(1,608)		31,441
Charge-offs	(14,744)		(28,283)		—		(43,027)
Recoveries	4,684		8,331		—		13,015
Balance at December 31	$	142,369	$	75,236	$	7,536	$	225,141

Activity in the allowance for credit losses for unfunded commitments is summarized as follows:

(Dollars in thousands)	December 31, 2021		December 31, 2020
Allowance for credit losses:
Beginning balance	$	12,814	$	1,055
Adoption of ASC 326	—		8,885
Adjusted beginning balance	$	12,814	$	9,940
(Benefit) provision	(999)		2,874
Ending balance	11,815		12,814

The following table presents information on collateral-dependent loans by class and includes the amortized cost of collateral-dependent loans and leases, the net realizable value of the collateral, the extent to which collateral secures collateral-dependent loans and the associated ACL as of December 31, 2021 and 2020.

	December 31, 2021
(Dollars in thousands)	Collateral-Dependent Loans		Net Realizable Value of Collateral		Collateral Coverage		Allowance for Credit Losses
Commercial loans:
Construction and land development	$	1,424	$	1,964	137.9	%	$	—
Owner occupied commercial mortgage	3,461		4,370		126.3		—
Non-owner occupied commercial mortgage	2,056		2,118		103.0		—
Commercial and industrial and leases	2,665		5,208		195.4		941
Total commercial loans	9,606		13,660		142.2		941
Consumer:
Residential mortgage	5,323		7,353		138.1		—
Total non-PCD loans	14,929		21,013		140.8		941
PCD	4,864		21,099		433.8		—
Total collateral-dependent loans	$	19,793	$	42,112	212.8	%	$	941

	December 31, 2020
(Dollars in thousands)	Collateral-Dependent Loans		Net Realizable Value of Collateral		Collateral Coverage		Allowance for Credit Losses
Commercial loans:
Construction and land development	$	1,424	$	1,795	126.1	%	$	—
Owner occupied commercial mortgage	9,792		14,253		145.6		—
Non-owner occupied commercial mortgage	5,556		7,577		136.4		—
Total commercial loans	16,772		23,625		140.9		—
Consumer:
Residential mortgage	23,011		29,775		129.4		131
Total non-PCD loans	39,783		53,400		134.2		131
PCD	19,042		27,872		146.4		—
Total collateral-dependent loans	$	58,825	$	81,272	138.2	%	$	131

Troubled Debt Restructuring, Summary of Accrual Status

The following tables provides a summary of total TDRs by accrual status.

	December 31, 2021						December 31, 2020
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans:
Construction and land development	$	328	$	29	$	357	$	578	$	54	$	632
Owner occupied commercial mortgage	43,593		6,231		49,824		37,574		10,889		48,463
Non-owner occupied commercial mortgage	21,278		2,741		24,019		18,336		1,649		19,985
Commercial and industrial and leases	11,723		9,384		21,107		29,131		3,528		32,659
Total commercial loans	76,922		18,385		95,307		85,619		16,120		101,739
Consumer:
Residential mortgage	20,635		12,262		32,897		29,458		19,380		48,838
Revolving mortgage	16,322		6,395		22,717		20,124		7,128		27,252
Construction and land development	961		259		1,220		1,573		9		1,582
Consumer auto	1,827		455		2,282		2,018		696		2,714
Consumer other	713		76		789		955		137		1,092
Total consumer loans	40,458		19,447		59,905		54,128		27,350		81,478
PCD loans	29,401		9,935		39,336		17,617		7,346		24,963
Total loans	$	146,781	$	47,767	$	194,548	$	157,364	$	50,816	$	208,180

	December 31, 2019
(Dollars in thousands)	Accruing		Nonaccruing		Total
Commercial loans:
Construction and land development	$	487	$	2,279	$	2,766
Commercial mortgage	50,819		11,116		61,935
Other commercial real estate	571		—		571
Commercial and industrial and leases	9,430		2,409		11,839
Other	320		105		425
Total commercial loans	61,627		15,909		77,536
Noncommercial:
Residential mortgage	41,813		16,048		57,861
Revolving mortgage	21,032		7,367		28,399
Construction and land development	1,452		2,430		3,882
Consumer	2,826		688		3,514
Total noncommercial loans	67,123		26,533		93,656
Total loans	$	128,750	$	42,442	$	171,192

Troubled Debt Restructurings on Financing Receivables

The following table summarizes the loan restructurings as of December 31, 2021, 2020 and 2019 that were designated as TDRs. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due, foreclosure or charge-off, whichever occurs first.

	2021			2020			2019
	Restructurings			Restructurings			Restructurings
(Dollars in thousands)	Number of loans	Amortized cost at period end		Number of loans	Amortized cost at period end		Number of loans	Amortized cost at period end
Loans and leases
Interest only period provided
Commercial loans	19	$	17,847	31	$	28,145	11	$	1,595
Consumer loans	1	297		6	4,169		7	4,018
Total interest only	20	18,144		37	32,314		18	5,613
Loan term extension
Commercial loans	23	6,717		26	5,444		16	3,904
Consumer loans	106	8,803		66	5,689		2	342
Total loan term extension	129	15,520		92	11,133		18	4,246
Below market interest rate
Commercial loans	97	17,082		98	33,870		90	13,932
Consumer loans	80	3,188		156	6,074		176	12,458
Total below market interest rate	177	20,270		254	39,944		266	26,390
Discharged from bankruptcy
Commercial loans	32	5,955		30	1,168		25	5,571
Consumer loans	96	3,675		186	8,129		178	10,349
Total discharged from bankruptcy	128	9,630		216	9,297		203	15,920
Total restructurings	454	$	63,564	599	$	92,688	505	$	52,169