Quarterly report pursuant to Section 13 or 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

v3.21.1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
3 Months Ended
Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Loans Stated at Face Amount, Net of Unearned Income

The Company’s loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2021 and December 31, 2020 (dollars in thousands):

March 31, 2021

    

December 31, 2020

Construction and Land Development

$

884,303

$

925,798

Commercial Real Estate - Owner Occupied

 

2,083,155

 

2,128,909

Commercial Real Estate - Non-Owner Occupied

 

3,671,471

 

3,657,562

Multifamily Real Estate

 

842,906

 

814,745

Commercial & Industrial(1)

 

3,599,884

 

3,263,460

Residential 1-4 Family - Commercial

 

658,051

 

671,949

Residential 1-4 Family - Consumer

 

816,916

 

822,866

Residential 1-4 Family - Revolving

 

563,786

 

596,996

Auto

 

406,349

 

401,324

Consumer

 

215,711

 

247,730

Other Commercial(2)

 

529,748

 

489,975

Total loans held for investment, net of deferred fees and costs(3)

14,272,280

14,021,314

Allowance for loan and lease losses

(142,911)

(160,540)

Total loans held for investment, net

$

14,129,369

$

13,860,774

(1) Commercial & industrial loans include approximately $1.5 billion and $1.2 billion in loans from the PPP at March 31, 2021 and December 31, 2020, respectively.

.

(2) Other commercial loans include approximately $20.2 million and $11.3 million in loans from the PPP at March 31, 2021 and December 31, 2020, respectively.

(3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $83.8 million and $69.7 million as of March 31, 2021 and December 31, 2020, respectively.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at March 31, 2021 (dollars in thousands):

    

    

    

    

Greater than

    

    

30-59 Days

60-89 Days

90 Days and

Current

Past Due

Past Due

still Accruing

Nonaccrual

Total Loans

Construction and Land Development

$

880,139

$

865

$

473

$

189

$

2,637

$

884,303

Commercial Real Estate - Owner Occupied

 

2,069,019

 

3,426

 

514

 

3,180

 

7,016

 

2,083,155

Commercial Real Estate - Non-Owner Occupied

 

3,666,228

 

1,055

 

1,413

 

817

 

1,958

 

3,671,471

Multifamily Real Estate

 

842,638

 

187

 

81

 

 

 

842,906

Commercial & Industrial

 

3,593,508

 

3,086

 

613

 

654

 

2,023

 

3,599,884

Residential 1-4 Family - Commercial

 

645,684

 

1,803

 

798

 

576

 

9,190

 

658,051

Residential 1-4 Family - Consumer

 

791,466

 

6,831

 

808

 

3,041

 

14,770

 

816,916

Residential 1-4 Family - Revolving

 

557,335

 

1,397

 

284

 

917

 

3,853

 

563,786

Auto

 

404,692

 

1,035

 

165

 

154

 

303

 

406,349

Consumer

 

214,438

 

595

 

314

 

248

 

116

 

215,711

Other Commercial

529,253

407

88

529,748

Total loans held for investment

$

14,194,400

$

20,687

$

5,551

$

9,776

$

41,866

$

14,272,280

% of total loans

99.45

%

0.15

%

0.04

%

0.07

%

0.29

%

100.00

%

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2020 (dollars in thousands):

    

    

    

    

Greater than

    

    

 

30-59 Days

60-89 Days

90 Days and

 

Current

Past Due

Past Due

still Accruing

Nonaccrual

Total Loans

 

Construction and Land Development

$

920,276

$

1,903

$

547

$

$

3,072

$

925,798

Commercial Real Estate - Owner Occupied

 

2,114,804

 

1,870

 

1,380

 

3,727

 

7,128

 

2,128,909

Commercial Real Estate - Non-Owner Occupied

 

3,651,232

 

2,144

 

1,721

 

148

 

2,317

 

3,657,562

Multifamily Real Estate

 

814,095

 

617

 

 

 

33

 

814,745

Commercial & Industrial

 

3,257,201

 

1,848

 

1,190

 

1,114

 

2,107

 

3,263,460

Residential 1-4 Family - Commercial

 

657,351

 

2,227

 

818

 

1,560

 

9,993

 

671,949

Residential 1-4 Family - Consumer

 

792,852

 

10,182

 

1,533

 

5,699

 

12,600

 

822,866

Residential 1-4 Family - Revolving

 

587,522

 

2,975

 

1,044

 

826

 

4,629

 

596,996

Auto

 

398,206

 

2,076

 

376

 

166

 

500

 

401,324

Consumer

 

245,551

 

1,166

 

550

 

394

 

69

 

247,730

Other Commercial

489,959

16

489,975

Total loans held for investment

$

13,929,049

$

27,024

$

9,159

$

13,634

$

42,448

$

14,021,314

% of total loans

99.34

%

0.19

%

0.07

%

0.10

%

0.30

%

100.00

%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2021, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 (dollars in thousands):

Nonaccrual

January 1, 2021

March 31, 2021

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

$

3,072

$

2,637

$

1,985

$

189

Commercial Real Estate - Owner Occupied

7,128

7,016

1,994

3,180

Commercial Real Estate - Non-Owner Occupied

2,317

1,958

817

Multifamily Real Estate

33

Commercial & Industrial

2,107

2,023

1

654

Residential 1-4 Family - Commercial

9,993

9,190

6,388

576

Residential 1-4 Family - Consumer

12,600

14,770

2,364

3,041

Residential 1-4 Family - Revolving

4,629

3,853

60

917

Auto

500

303

154

Consumer

69

116

248

Total loans held for investment

$

42,448

$

41,866

$

12,792

$

9,776

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2020, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2020 (dollars in thousands):

Nonaccrual

January 1, 2020

December 31, 2020

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

$

4,060

$

3,072

$

1,985

$

Commercial Real Estate - Owner Occupied

13,889

7,128

1,994

3,727

Commercial Real Estate - Non-Owner Occupied

1,368

2,317

148

Multifamily Real Estate

33

Commercial & Industrial

3,037

2,107

1

1,114

Residential 1-4 Family - Commercial

6,492

9,993

6,388

1,560

Residential 1-4 Family - Consumer

13,117

12,600

1,069

5,699

Residential 1-4 Family - Revolving

2,490

4,629

60

826

Auto

565

500

166

Consumer

88

69

394

Other Commercial

98

Total loans held for investment

$

45,204

$

42,448

$

11,497

$

13,634

Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement

The following table provides a summary, by class, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2021 and December 31, 2020 (dollars in thousands):

March 31, 2021

December 31, 2020

    

No. of

    

Recorded

    

Outstanding

    

No. of

    

Recorded

    

Outstanding

Loans

Investment

Commitment

Loans

Investment

Commitment

Performing

 

  

 

  

 

  

 

  

 

  

 

  

Construction and Land Development

 

4

$

212

$

 

4

$

215

$

Commercial Real Estate - Owner Occupied

 

5

 

1,827

 

 

6

 

2,033

 

176

Commercial Real Estate - Non-Owner Occupied

 

1

 

1,089

 

 

1

 

1,089

 

Commercial & Industrial

 

2

 

446

 

 

4

 

727

 

Residential 1-4 Family - Commercial

 

2

 

109

 

 

3

 

245

 

Residential 1-4 Family - Consumer

 

84

 

9,271

 

 

77

 

8,943

 

Residential 1-4 Family - Revolving

 

3

 

274

 

3

 

3

 

277

 

Consumer

 

4

 

35

 

 

3

 

22

 

Other Commercial

1

407

1

410

Total performing

 

106

$

13,670

$

3

 

102

$

13,961

$

176

Nonperforming

 

  

 

  

 

  

 

  

 

  

 

  

Commercial Real Estate - Owner Occupied

 

1

$

19

$

 

1

$

20

$

Commercial Real Estate - Non-Owner Occupied

1

128

1

134

Commercial & Industrial

 

4

 

427

 

 

3

 

237

 

Residential 1-4 Family - Commercial

 

3

 

404

 

 

4

 

1,296

 

Residential 1-4 Family - Consumer

 

26

 

4,977

 

 

23

 

4,865

 

Residential 1-4 Family - Revolving

 

3

 

103

 

 

3

 

103

 

Total nonperforming

 

38

$

6,058

$

 

35

$

6,655

$

Total performing and nonperforming

 

144

$

19,728

$

3

 

137

$

20,616

$

176

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2021 and 2020 (dollars in thousands):

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

    

    

Recorded

    

    

Recorded

No. of

Investment at

No. of

Investment at

Loans

Period End

Loans

Period End

Modified to interest only, at a market rate

 

  

 

  

 

  

 

  

Total interest only at market rate of interest

 

$

 

$

Term modification, at a market rate

 

  

 

  

 

  

 

  

Commercial & Industrial

 

$

 

1

$

517

Residential 1-4 Family - Consumer

 

2

 

105

 

 

Total loan term extended at a market rate

 

2

$

105

 

1

$

517

Term modification, below market rate

 

  

 

  

 

  

 

  

Construction and Land Development

$

1

$

35

Residential 1-4 Family - Consumer

 

9

 

472

 

10

 

1,763

Consumer

 

1

 

16

 

 

Total loan term extended at a below market rate

 

10

$

488

 

11

$

1,798

Interest rate modification, below market rate

 

  

 

  

 

  

 

  

Residential 1-4 Family - Commercial

 

1

$

45

 

$

Total interest only at below market rate of interest

 

1

$

45

 

$

Total

 

13

$

638

 

12

$

2,315

Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology

The following tables show the ALLL activity by segment for the three months ended March 31, 2021 and 2020 (dollars in thousands):

Three Months Ended March 31, 2021

Commercial

Consumer

Total

Balance at beginning of period

$

117,403

$

43,137

$

160,540

Loans charged-off

 

(1,974)

 

(1,667)

 

(3,641)

Recoveries credited to allowance

 

1,606

 

863

 

2,469

Provision charged to operations

 

(10,603)

 

(5,854)

 

(16,457)

Balance at end of period

$

106,432

$

36,479

$

142,911

Three Months Ended March 31, 2020

Commercial

Consumer

Total

Balance at beginning of period

$

30,941

$

11,353

$

42,294

Impact of ASC 326 adoption on non-PCD loans

 

4,432

 

40,666

 

45,098

Impact of ASC 326 adoption on PCD loans

 

1,752

 

634

 

2,386

Impact of adopting ASC 326

 

6,184

 

41,300

 

47,484

Loans charged-off

 

(2,968)

 

(4,183)

 

(7,151)

Recoveries credited to allowance

 

1,154

 

1,006

 

2,160

Provision charged to operations

 

42,532

 

13,724

 

56,256

Balance at end of period

$

77,843

$

63,200

$

141,043

Commercial Portfolio  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Loans Receivables Related Risk Rating

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of March 31, 2021 (dollars in thousands):

March 31, 2021

Term Loans Amortized Cost Basis by Origination Year

2021

2020

2019

2018

2017

Prior

Revolving Loans

Total

Construction and Land Development

Pass

$

61,584

$

340,066

$

215,340

$

77,960

$

22,165

$

65,264

$

26,117

$

808,496

Watch

13

2,486

23,950

1,834

571

5,521

412

34,787

Special Mention

5,635

135

1,062

6,832

Substandard

28,395

8

5,785

34,188

Total Construction and Land Development

$

61,597

$

342,552

$

244,925

$

108,324

$

22,744

$

77,632

$

26,529

$

884,303

Commercial Real Estate - Owner Occupied

Pass

$

34,001

$

273,173

$

346,684

$

285,739

$

216,109

$

664,203

$

17,023

$

1,836,932

Watch

15,073

16,771

23,606

15,970

66,770

932

139,122

Special Mention

974

27,269

5,393

4,909

36,050

1,841

76,436

Substandard

4,950

5,060

158

20,497

30,665

Total Commercial Real Estate - Owner Occupied

$

34,001

$

289,220

$

395,674

$

319,798

$

237,146

$

787,520

$

19,796

$

2,083,155

Commercial Real Estate - Non-Owner Occupied

Pass

$

113,841

$

381,511

$

429,913

$

401,006

$

395,726

$

1,183,233

$

35,333

$

2,940,563

Watch

17,458

160,682

81,003

40,014

231,751

15,291

546,199

Special Mention

698

23,529

30,489

31,998

65,303

723

152,740

Substandard

10,991

13,263

7,715

31,969

Total Commercial Real Estate - Non-Owner Occupied

$

113,841

$

410,658

$

614,124

$

525,761

$

467,738

$

1,488,002

$

51,347

$

3,671,471

Commercial & Industrial

Pass

$

587,238

$

1,519,813

$

334,830

$

199,114

$

59,668

$

196,093

$

564,292

$

3,461,048

Watch

23

13,018

25,346

14,560

2,559

6,048

17,433

78,987

Special Mention

15,235

1,260

6,396

3,669

4,630

1,731

11,265

44,186

Substandard

527

4,942

1,278

303

2,865

5,748

15,663

Total Commercial & Industrial

$

602,496

$

1,534,618

$

371,514

$

218,621

$

67,160

$

206,737

$

598,738

$

3,599,884

Multifamily Real Estate

Pass

$

8,219

$

143,295

$

114,224

$

166,220

$

102,337

$

269,062

$

2,927

$

806,284

Watch

4,398

471

24,243

29,112

Special Mention

2,280

640

4,383

94

7,397

Substandard

113

113

Total Multifamily Real Estate

$

8,219

$

145,575

$

119,262

$

171,074

$

102,337

$

293,512

$

2,927

$

842,906

Residential 1-4 Family - Commercial

Pass

$

20,945

$

106,176

$

82,343

$

62,283

$

74,998

$

254,905

$

2,294

$

603,944

Watch

659

3,898

8,013

3,916

13,632

193

30,311

Special Mention

165

2,744

456

444

6,007

9,816

Substandard

773

5,433

1,444

5,842

488

13,980

Total Residential 1-4 Family - Commercial

$

21,110

$

106,835

$

89,758

$

76,185

$

80,802

$

280,386

$

2,975

$

658,051

Other Commercial

Pass

$

50,013

$

216,949

$

111,954

$

8,870

$

30,297

$

57,341

$

21,903

$

497,327

Watch

605

1,286

3,835

5,726

Special Mention

5

612

26,078

26,695

Total Other Commercial

$

50,013

$

216,949

$

111,954

$

9,475

$

31,588

$

61,788

$

47,981

$

529,748

Total Commercial

Pass

$

875,841

$

2,980,983

$

1,635,288

$

1,201,192

$

901,300

$

2,690,101

$

669,889

$

10,954,594

Watch

36

48,694

235,045

130,092

64,316

351,800

34,261

864,244

Special Mention

15,400

5,212

66,213

44,525

41,986

110,859

39,907

324,102

Substandard

11,518

10,665

53,429

1,913

42,817

6,236

126,578

Total Commercial

$

891,277

$

3,046,407

$

1,947,211

$

1,429,238

$

1,009,515

$

3,195,577

$

750,293

$

12,269,518

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, 2020 (dollars in thousands):

December 31, 2020

Term Loans Amortized Cost Basis by Origination Year

2020

2019

2018

2017

2016

Prior

Revolving Loans

Total

Construction and Land Development

Pass

$

316,585

$

277,142

$

116,800

$

24,770

$

42,970

$

54,023

$

23,324

$

855,614

Watch

1,873

18,181

8,434

344

2,355

6,372

412

37,971

Special Mention

5,532

135

2,655

8,322

Substandard

17,780

64

2,037

4,010

23,891

Total Construction and Land Development

$

318,458

$

300,855

$

143,149

$

25,178

$

47,362

$

67,060

$

23,736

$

925,798

Commercial Real Estate - Owner Occupied

Pass

$

286,522

$

375,541

$

300,583

$

233,359

$

128,261

$

570,361

$

18,838

$

1,913,465

Watch

1,942

14,611

22,224

15,623

24,979

41,361

1,648

122,388

Special Mention

988

6,052

5,749

4,198

9,907

30,455

1,121

58,470

Substandard

4,858

5,159

914

1,555

21,101

999

34,586

Total Commercial Real Estate - Owner Occupied

$

289,452

$

401,062

$

333,715

$

254,094

$

164,702

$

663,278

$

22,606

$

2,128,909

Commercial Real Estate - Non-Owner Occupied

Pass

$

381,849

$

455,427

$

433,183

$

403,677

$

336,630

$

850,035

$

30,421

$

2,891,222

Watch

28,354

142,279

76,838

59,451

79,533

224,944

16,870

628,269

Specia