XML 68 R45.htm IDEA: XBRL DOCUMENT v3.24.0.1
Loans Held for Investment (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans by Class
The following table presents loans by class of receivable and portfolio segment as of the dates indicated:
20232022
Real estate:  
Commercial$8,869.2 $8,528.6 
Construction1,826.5 1,944.4 
Residential2,244.3 2,188.3 
Agricultural716.8 794.9 
Total real estate13,656.8 13,456.2 
Consumer:
Indirect740.9 829.7 
Direct and advance lines141.6 152.9 
Credit card76.5 75.9 
Total consumer959.0 1,058.5 
Commercial2,906.8 2,882.6 
Agricultural769.4 708.3 
Other, including overdrafts0.1 9.2 
Loans held for investment18,292.1 18,114.8 
Deferred loan fees and costs(12.5)(15.6)
Loans held for investment, net of deferred fees and costs18,279.6 18,099.2 
Allowance for credit losses(227.7)(220.1)
Net loans held for investment$18,051.9 $17,879.1 
Schedule of Allowance for Loan Losses by Portfolio Segment
The following tables represent, by loan portfolio segments, the activity in the allowance for credit losses for loans held for investment:
December 31, 2023Beginning BalanceProvision for (reversal of)
Credit Losses
Loans Charged-Off(2)
Recoveries CollectedEnding Balance
Allowance for credit losses (1)
Real estate$138.7 $35.2 $(18.5)$4.7 $160.1 
Consumer23.3 (1.0)(14.0)4.7 13.0 
Commercial54.9 (3.9)(3.4)2.6 50.2 
Agricultural3.2 0.8 — 0.4 4.4 
Total allowance for credit losses$220.1 $31.1 $(35.9)$12.4 $227.7 
December 31, 2022Beginning BalanceACL Recorded for PCD LoansProvision for (reversal of) Credit Loss
Loans Charged-Off(2)
Recoveries CollectedEnding Balance
Allowance for credit losses (1)
Real estate:  
Commercial real estate:
Non-owner occupied$17.3 $17.2 $(4.2)$(3.5)$0.4 $27.2 
Owner occupied13.3 9.5 (2.7)(2.5)1.9 19.5 
Multi-family13.3 10.9 8.7 (5.7)0.7 27.9 
Total commercial real estate43.9 37.6 1.8 (11.7)3.0 74.6 
Construction:
Land acquisition & development0.5 3.4 (0.4)(2.6)0.4 1.3 
Residential construction2.4 — 1.1 — 0.1 3.6 
Commercial construction6.0 0.2 31.6 (6.6)— 31.2 
Total construction8.9 3.6 32.3 (9.2)0.5 36.1 
Residential real estate:
Residential 1-4 family13.4 0.1 6.9 (0.2)0.3 20.5 
Home equity and HELOC1.2 — — (0.1)0.5 1.6 
Total residential real estate14.6 0.1 6.9 (0.3)0.8 22.1 
Agricultural real estate1.9 2.3 1.5 (0.2)0.4 5.9 
Total real estate69.3 43.6 42.5 (21.4)4.7 138.7 
Consumer:
Indirect14.3 — 2.7 (4.0)2.3 15.3 
Direct and advance lines4.6 — 2.2 (3.7)2.1 5.2 
Credit card2.2 — 2.4 (2.4)0.6 2.8 
Total consumer21.1 — 7.3 (10.1)5.0 23.3 
Commercial:
Commercial and floor plans27.1 11.2 15.1 (6.6)2.2 49.0 
Commercial purpose secured by 1-4 family4.4 0.2 1.2 (0.2)0.1 5.7 
Credit card0.1 — 1.4 (1.3)— 0.2 
Total commercial31.6 11.4 17.7 (8.1)2.3 54.9 
Agricultural:
Agricultural0.3 4.5 0.9 (5.4)2.9 3.2 
Total agricultural0.3 4.5 0.9 (5.4)2.9 3.2 
Total allowance for credit losses$122.3 $59.5 $68.4 $(45.0)$14.9 $220.1 
December 31, 2021Beginning BalanceProvision for (reversal of) Credit Loss
Loans Charged-Off(2)
Recoveries CollectedEnding Balance
Allowance for credit losses (1)
Real estate: 
Commercial real estate:
Non-owner occupied$25.5 $(8.3)$— $0.1 $17.3 
Owner occupied18.3 (2.7)(2.3)— 13.3 
Multi-family11.0 2.3 — — 13.3 
Total commercial real estate54.8 (8.7)(2.3)0.1 43.9 
Construction:
Land acquisition & development1.3 (0.1)(1.2)0.5 0.5 
Residential construction1.6 0.9 (0.1)— 2.4 
Commercial construction7.3 (1.3)(0.1)0.1 6.0 
Total construction10.2 (0.5)(1.4)0.6 8.9 
Residential real estate:
Residential 1-4 family11.4 2.0 — — 13.4 
Home equity and HELOC1.4 (0.4)(0.1)0.3 1.2 
Total residential real estate12.8 1.6 (0.1)0.3 14.6 
Agricultural real estate2.7 (0.1)(0.7)— 1.9 
Total real estate80.5 (7.7)(4.5)1.0 69.3 
Consumer:
Indirect16.7 (1.4)(3.5)2.5 14.3 
Direct and advance lines4.6 1.7 (2.9)1.2 4.6 
Credit card2.6 0.6 (1.8)0.8 2.2 
Total consumer23.9 0.9 (8.2)4.5 21.1 
Commercial:
Commercial and floor plans34.2 (7.3)(3.0)3.2 27.1 
Commercial purpose secured by 1-4 family4.7 (0.5)(0.3)0.5 4.4 
Credit card0.3 0.1 (0.4)0.1 0.1 
Total commercial39.2 (7.7)(3.7)3.8 31.6 
Agricultural:
Agricultural0.7 (0.2)(0.2)— 0.3 
Total agricultural0.7 (0.2)(0.2)— 0.3 
Total allowance for credit losses$144.3 $(14.7)$(16.6)$9.3 $122.3 
(1) Amounts presented exclude the allowance for credit losses related to unfunded commitments and investment securities. The allowance for credit losses related to unfunded commitments and investment securities are included in the “Financial Instruments with Off-Balance Sheet Risk” Note and “Investment Securities” Note, respectively.
(2) Loans, or portions thereof, are charged-off against the allowance for credit losses when management believes the collectability of the principal is unlikely, or, with respect to consumer installment loans, according to an established delinquency schedule.
Schedule of Recorded Investment in Impaired Loans
The following tables present the principal balance of collateral-dependent loans by class of receivable as of the dates indicated:
Collateral Type
As of December 31, 2023Business AssetsReal PropertyOtherTotal
Real estate:
Commercial$— $26.6 $— $26.6 
Construction— 17.0 — 17.0 
Residential— 0.5 — 0.5 
Agricultural— 1.2 — 1.2 
Total real estate— 45.3 — 45.3 
Commercial4.5 1.4 0.7 6.6 
Agricultural0.7 — — 0.7 
Total collateral-dependent loans$5.2 $46.7 $0.7 $52.6 
Collateral Type
As of December 31, 2022Business AssetsReal PropertyOtherTotal
Real estate:
Commercial$1.7 $15.8 $— $17.5 
Construction— 3.2 — 3.2 
Residential— 0.5 — 0.5 
Agricultural0.2 5.8 — 6.0 
Total real estate1.9 25.3 — 27.2 
Commercial3.1 1.5 — 4.6 
Agricultural2.1 5.2 — 7.3 
Total collateral-dependent loans$7.1 $32.0 $— $39.1 
Schedule of Recorded Investment in Past Due Loans by Class
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans classified in the following table as 90 days or more past due continue to accrue interest. The following tables present the contractual aging of the Company’s recorded principal balance of loans by class of receivable as of the dates indicated:
Total Loans
30 - 5960 - 8990 or more30 or More
DaysDaysDaysDaysCurrentNon-accrualTotal
As of December 31, 2023Past DuePast DuePast DuePast DueLoans
Loans (1)
Loans
Real estate
Commercial$12.7 $6.1 $— $18.8 $8,822.2 $28.2 $8,869.2 
Construction3.1 0.4 — 3.5 1,805.8 17.2 1,826.5 
Residential11.9 3.1 0.6 15.6 2,218.0 10.7 2,244.3 
Agricultural1.8 — — 1.8 709.6 5.4 716.8 
Total real estate29.5 9.6 0.6 39.7 13,555.6 61.5 13,656.8 
Consumer:
Indirect8.0 2.2 0.4 10.6 727.6 2.7 740.9 
Direct0.9 0.2 — 1.1 140.2 0.3 141.6 
Credit card0.7 0.5 0.6 1.8 74.7 — 76.5 
Total consumer9.6 2.9 1.0 13.5 942.5 3.0 959.0 
Commercial14.5 1.1 0.3 15.9 2,879.4 11.5 2,906.8 
Agricultural0.1 — 3.0 3.1 735.9 30.4 769.4 
Other, including overdrafts— — — — 0.1 — 0.1 
Loans held for investment$53.7 $13.6 $4.9 $72.2 $18,113.5 $106.4 $18,292.1 
Total Loans
30 - 5960 - 8990 or more30 or More
DaysDaysDaysDaysCurrentNon-accrualTotal
As of December 31, 2022Past DuePast DuePast DuePast DueLoans
Loans (1)
Loans
Real estate
Commercial$5.6 $0.8 $1.1 $7.5 $8,501.5 $19.6 $8,528.6 
Construction10.4 0.6 0.6 11.6 1,929.1 3.7 1,944.4 
Residential9.9 2.1 1.2 13.2 2,168.7 6.4 2,188.3 
Agricultural1.1 6.1 — 7.2 780.1 7.6 794.9 
Total real estate27.0 9.6 2.9 39.5 13,379.4 37.3 13,456.2 
Consumer:
Indirect9.3 2.4 0.6 12.3 814.7 2.7 829.7 
Direct0.8 0.3 0.1 1.2 151.4 0.3 152.9 
Credit card0.8 0.4 0.6 1.8 74.1 — 75.9 
Total consumer10.9 3.1 1.3 15.3 1,040.2 3.0 1,058.5 
Commercial7.1 1.7 2.1 10.9 2,861.5 10.2 2,882.6 
Agricultural0.8 2.2 0.1 3.1 696.5 8.7 708.3 
Other, including overdrafts— — — — 9.2 — 9.2 
Loans held for investment$45.8 $16.6 $6.4 $68.8 $17,986.8 $59.2 $18,114.8 
(1) As of December 31, 2023 and 2022, none of our non-accrual loans were earning interest income. Additionally, no material interest income was recognized on non-accrual loans at December 31, 2023 and 2022, respectively. There were $2.7 million and $1.5 million in reversals of accrued interest at December 31, 2023 and 2022, respectively.
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
The following table reconciles the par value, or initial amortized cost, of PCD loans acquired in the GWB acquisition as of February 1, 2022, or the date of the acquisition with the purchase price (or initial fair value of the loans) as amended for measurement period adjustments:
Purchase price (initial fair value)$623.3 
Allowance for credit losses (1)
298.2 
Discount attributable to other factors (2)
57.7 
Par value (unpaid principal balance)$979.2 
(1) For acquired PCD loans, an allowance of $298.2 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off by GWB, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $238.7 million, included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $59.5 million.
(2) Non-credit discount includes the difference between the amortized cost basis and the unpaid principal balance of $39.6 million established on PCD loans acquired from GWB and interest applied to principal of $18.1 million.
Financing receivable, Modified
The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2023, by class and by type of modification. The percentage of the principal balance of loans that were modified to borrowers in financial difficulty as compared to the principal balance of each class of receivable is also presented below:
December 31, 2023Principal ForgivenessTerm ExtensionRate ReductionTerm Extension and Interest Rate ReductionTotal
% of Total Class of Loans Held for Investment (1)
Real estate:
Commercial$1.5 $28.6 $1.1 $0.6 $31.8 0.36 %
Construction— 13.7 — — 13.7 0.75 
Residential0.1 0.6 — — 0.7 0.03 
Agricultural— 6.4 — — 6.4 0.89 
Total real estate1.6 49.3 1.1 0.6 52.6 0.39 
Consumer:
Indirect— 0.1 — — 0.1 0.01 
Direct and advance lines— 0.1 — — 0.1 0.07 
Total consumer— 0.2 — — 0.2 0.02 
Commercial— 7.4 — 0.2 7.6 0.26 
Agricultural— 36.1 — — 36.1 4.69 
Loans held for investment (2)$1.6 $93.0 $1.1 $0.8 $96.5 0.53 %
(1) Based on the principal balance as of period end, divided by the period end principal balance of the corresponding class of receivables.
(2) As of December 31, 2023, the Company excluded $1.6 million in accrued interest from the amortized cost of the identified loans.
The Company monitors the performance of loan modifications to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Of the loans that were modified during the year ended December 31, 2023, there were $6.7 million of loans classified as past due 30 days or more, with the remaining loans performing in accordance with the modified terms and are classified as current at December 31, 2023.
There were no commitments to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the year ended December 31, 2023 through either principal forgiveness, interest rate reduction, term extension, or other than insignificant payment delay.
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the year ended December 31, 2023:
Term Extension and Interest Rate Reduction
Principal ForgivenessWeighted-Average Months of Term ExtensionWeighted-Average Interest Rate ReductionWeighted-Average Months of Term ExtensionWeighted-Average Interest Rate Reduction
Real estate:
Commercial$1.3 5.80.35 %6.00.25 %
Construction— 9.1— 0.0— 
Residential0.3 131.6— 0.0— 
Agricultural— 4.5— 0.0— 
Total real estate1.6 
Consumer:
Indirect— 8.3— 0.0— 
Direct and advance lines— 62.1— 0.0— 
Total consumer— 
Commercial— 12.2— 14.60.51 
Agricultural— 9.2— 0.0— 
Loans held for investment (1)
$1.6 
(1) Balances based on loan original contractual terms.