| LOANS AND ALLOWANCE FOR LOAN LOSSES |
3. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
The information included below reflects the impact of the CARES Act, as amended by the CAA, and the Joint Guidance. See Note 1 “Summary of Significant Accounting Policies” in the Company’s 2020 Form 10-K for information about COVID-19 and related legislative and regulatory developments.
The Company’s loans are stated at their face amount, net of deferred fees and costs, and consist of the following at June 30, 2021 and December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
December 31, 2020 |
Construction and Land Development |
|
$ |
838,722 |
|
$ |
925,798 |
Commercial Real Estate - Owner Occupied |
|
|
2,069,658 |
|
|
2,128,909 |
Commercial Real Estate - Non-Owner Occupied |
|
|
3,712,607 |
|
|
3,657,562 |
Multifamily Real Estate |
|
|
860,081 |
|
|
814,745 |
Commercial & Industrial(1) |
|
|
2,990,622 |
|
|
3,263,460 |
Residential 1-4 Family - Commercial |
|
|
637,485 |
|
|
671,949 |
Residential 1-4 Family - Consumer |
|
|
823,355 |
|
|
822,866 |
Residential 1-4 Family - Revolving |
|
|
559,014 |
|
|
596,996 |
Auto |
|
|
411,073 |
|
|
401,324 |
Consumer |
|
|
195,036 |
|
|
247,730 |
Other Commercial(2) |
|
|
600,276 |
|
|
489,975 |
Total loans held for investment, net of deferred fees and costs(3) |
|
|
13,697,929 |
|
|
14,021,314 |
Allowance for loan and lease losses |
|
|
(118,261) |
|
|
(160,540) |
Total loans held for investment, net |
|
$ |
13,579,668 |
|
$ |
13,860,774 |
(1) Commercial & industrial loans include approximately $842.0 million and $1.2 billion in loans from the PPP at June 30, 2021 and December 31, 2020, respectively.
(2) Other commercial loans include approximately $17.4 million and $11.3 million in loans from the PPP at June 30, 2021 and December 31, 2020, respectively.
(3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $73.7 million and $69.7 million as of June 30, 2021 and December 31, 2020, respectively.
The following table shows the aging of the Company’s loan portfolio, by class, at June 30, 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 |
|
$ |
834,743 |
|
$ |
798 |
|
$ |
310 |
|
$ |
186 |
|
$ |
2,685 |
|
$ |
838,722 |
|
Commercial Real Estate - Owner Occupied |
|
|
2,056,955 |
|
|
1,450 |
|
|
2,008 |
|
|
2,276 |
|
|
6,969 |
|
|
2,069,658 |
|
Commercial Real Estate - Non-Owner Occupied |
|
|
3,707,175 |
|
|
1,501 |
|
|
78 |
|
|
827 |
|
|
3,026 |
|
|
3,712,607 |
|
Multifamily Real Estate |
|
|
859,812 |
|
|
156 |
|
|
— |
|
|
— |
|
|
113 |
|
|
860,081 |
|
Commercial & Industrial |
|
|
2,984,945 |
|
|
948 |
|
|
1,733 |
|
|
1,088 |
|
|
1,908 |
|
|
2,990,622 |
|
Residential 1-4 Family - Commercial |
|
|
631,251 |
|
|
710 |
|
|
565 |
|
|
759 |
|
|
4,200 |
|
|
637,485 |
|
Residential 1-4 Family - Consumer |
|
|
805,385 |
|
|
764 |
|
|
992 |
|
|
2,725 |
|
|
13,489 |
|
|
823,355 |
|
Residential 1-4 Family - Revolving |
|
|
553,130 |
|
|
919 |
|
|
678 |
|
|
561 |
|
|
3,726 |
|
|
559,014 |
|
Auto |
|
|
409,228 |
|
|
1,333 |
|
|
165 |
|
|
168 |
|
|
179 |
|
|
411,073 |
|
Consumer |
|
|
193,934 |
|
|
545 |
|
|
297 |
|
|
156 |
|
|
104 |
|
|
195,036 |
|
Other Commercial |
|
|
599,901 |
|
|
375 |
|
|
— |
|
|
— |
|
|
— |
|
|
600,276 |
|
Total loans held for investment |
|
$ |
13,636,459 |
|
$ |
9,499 |
|
$ |
6,826 |
|
$ |
8,746 |
|
$ |
36,399 |
|
$ |
13,697,929 |
|
% of total loans |
|
|
99.55 |
% |
|
0.07 |
% |
|
0.05 |
% |
|
0.06 |
% |
|
0.27 |
% |
|
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 |
% |
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 June 30, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
|
|
|
|
|
|
|
January 1, 2021 |
|
June 30, 2021 |
|
Nonaccrual With No ALLL |
|
90 Days and still Accruing |
Construction and Land Development |
|
$ |
3,072 |
|
$ |
2,685 |
|
$ |
1,985 |
|
$ |
186 |
Commercial Real Estate - Owner Occupied |
|
|
7,128 |
|
|
6,969 |
|
|
1,994 |
|
|
2,276 |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,317 |
|
|
3,026 |
|
|
— |
|
|
827 |
Multifamily Real Estate |
|
|
33 |
|
|
113 |
|
|
— |
|
|
— |
Commercial & Industrial |
|
|
2,107 |
|
|
1,908 |
|
|
1 |
|
|
1,088 |
Residential 1-4 Family - Commercial |
|
|
9,993 |
|
|
4,200 |
|
|
1,736 |
|
|
759 |
Residential 1-4 Family - Consumer |
|
|
12,600 |
|
|
13,489 |
|
|
1,069 |
|
|
2,725 |
Residential 1-4 Family - Revolving |
|
|
4,629 |
|
|
3,726 |
|
|
60 |
|
|
561 |
Auto |
|
|
500 |
|
|
179 |
|
|
— |
|
|
168 |
Consumer |
|
|
69 |
|
|
104 |
|
|
— |
|
|
156 |
Total loans held for investment |
|
$ |
42,448 |
|
$ |
36,399 |
|
$ |
6,845 |
|
$ |
8,746 |
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 |
There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2021 and 2020. See Note 1 “Summary of Significant Accounting Policies” in the Company’s 2020 Form 10-K for additional information on the Company’s policies for nonaccrual loans.
Troubled Debt Restructurings
As of June 30, 2021, the Company has TDRs totaling $19.3 million with an estimated $800,000 of allowance for those loans for the current period. As of December 31, 2020, the Company had TDRs totaling $20.6 million with an estimated $1.6 million of allowance for those loans.
A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for credit losses in accordance with the Company’s ALLL methodology. For the three and six months ended June 30, 2021 and June 30, 2020, the recorded investment in TDRs prior to modifications was not materially impacted by the modifications.
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 June 30, 2021 and December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
December 31, 2020 |
|
|
No. of |
|
Recorded |
|
Outstanding |
|
No. of |
|
Recorded |
|
Outstanding |
|
|
Loans |
|
Investment |
|
Commitment |
|
Loans |
|
Investment |
|
Commitment |
Performing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
4 |
|
$ |
208 |
|
$ |
— |
|
4 |
|
$ |
215 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
4 |
|
|
1,009 |
|
|
— |
|
6 |
|
|
2,033 |
|
|
176 |
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
|
1,089 |
|
|
— |
|
1 |
|
|
1,089 |
|
|
— |
Commercial & Industrial |
|
2 |
|
|
434 |
|
|
— |
|
4 |
|
|
727 |
|
|
— |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
|
— |
|
3 |
|
|
245 |
|
|
— |
Residential 1-4 Family - Consumer |
|
80 |
|
|
9,641 |
|
|
— |
|
77 |
|
|
8,943 |
|
|
— |
Residential 1-4 Family - Revolving |
|
3 |
|
|
271 |
|
|
3 |
|
3 |
|
|
277 |
|
|
— |
Consumer |
|
3 |
|
|
26 |
|
|
— |
|
3 |
|
|
22 |
|
|
— |
Other Commercial |
|
1 |
|
|
375 |
|
|
— |
|
1 |
|
|
410 |
|
|
— |
Total performing |
|
98 |
|
$ |
13,053 |
|
$ |
3 |
|
102 |
|
$ |
13,961 |
|
$ |
176 |
Nonperforming |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied |
|
2 |
|
$ |
832 |
|
$ |
— |
|
1 |
|
$ |
20 |
|
$ |
— |
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
|
123 |
|
|
— |
|
1 |
|
|
134 |
|
|
— |
Commercial & Industrial |
|
4 |
|
|
402 |
|
|
— |
|
3 |
|
|
237 |
|
|
— |
Residential 1-4 Family - Commercial |
|
3 |
|
|
399 |
|
|
— |
|
4 |
|
|
1,296 |
|
|
— |
Residential 1-4 Family - Consumer |
|
24 |
|
|
4,373 |
|
|
— |
|
23 |
|
|
4,865 |
|
|
— |
Residential 1-4 Family - Revolving |
|
3 |
|
|
102 |
|
|
— |
|
3 |
|
|
103 |
|
|
— |
Total nonperforming |
|
37 |
|
$ |
6,231 |
|
$ |
— |
|
35 |
|
$ |
6,655 |
|
$ |
— |
Total performing and nonperforming |
|
135 |
|
$ |
19,284 |
|
$ |
3 |
|
137 |
|
$ |
20,616 |
|
$ |
176 |
The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three and six months ended June 30, 2021 and 2020, the Company did not have any material loans that went into default that had been restructured in the twelve-month period prior to the time of default.
The following table shows, by class and modification type, TDRs that occurred during the three and six months ended June 30, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2021 |
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Consumer |
|
— |
|
$ |
— |
|
2 |
|
$ |
104 |
Total loan term extended at a market rate |
|
— |
|
$ |
— |
|
2 |
|
$ |
104 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Consumer |
|
3 |
|
$ |
1,382 |
|
11 |
|
$ |
1,824 |
Consumer |
|
— |
|
|
— |
|
1 |
|
|
15 |
Total loan term extended at a below market rate |
|
3 |
|
$ |
1,382 |
|
12 |
|
$ |
1,839 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
3 |
|
$ |
1,382 |
|
15 |
|
$ |
1,988 |
The following table shows, by class and modification type, TDRs that occurred during the three and six months ended June 30, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2020 |
|
Six Months Ended June 30, 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 |
|
4 |
|
$ |
353 |
|
4 |
|
$ |
353 |
Residential 1-4 Family - Consumer |
|
3 |
|
|
326 |
|
3 |
|
|
326 |
Consumer |
|
1 |
|
|
10 |
|
1 |
|
|
10 |
Total loan term extended at a market rate |
|
8 |
|
$ |
689 |
|
8 |
|
$ |
689 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
— |
|
$ |
— |
|
1 |
|
$ |
35 |
Residential 1-4 Family - Consumer |
|
3 |
|
|
172 |
|
13 |
|
|
1,937 |
Residential 1-4 Family - Revolving |
|
1 |
|
|
52 |
|
1 |
|
|
52 |
Total loan term extended at a below market rate |
|
4 |
|
$ |
224 |
|
15 |
|
$ |
2,024 |
|
|
|
|
|
|
|
|
|
|
|
Interest rate modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Total interest only at below market rate of interest |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
12 |
|
$ |
913 |
|
23 |
|
$ |
2,713 |
Allowance for Loan and Lease Losses
ALLL on the loan portfolio is a material estimate for the Company. The Company estimates its ALLL on its loan portfolio on a quarterly basis. The Company models the ALLL using two primary segments, Commercial and Consumer. Each loan segment is further disaggregated into classes based on similar risk characteristics. The Company has identified the following classes within each loan segment:
|
● |
Commercial: Construction and Land Development, Commercial Real Estate – Owner Occupied, Commercial Real Estate – Non-Owner Occupied, Multifamily Real Estate, Commercial & Industrial, Residential 1-4 Family – Commercial, and Other Commercial
|
|
● |
Consumer: Residential 1-4 Family – Consumer, Residential 1-4 Family – Revolving, Auto, and Consumer
|
The following tables show the ALLL activity by loan segment for the three and six months ended June 30, 2021 and 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2021 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
106,432 |
|
$ |
36,479 |
|
$ |
142,911 |
|
$ |
117,403 |
|
$ |
43,137 |
|
$ |
160,540 |
Loans charged-off |
|
|
(891) |
|
|
(1,054) |
|
|
(1,945) |
|
|
(2,865) |
|
|
(2,721) |
|
|
(5,586) |
Recoveries credited to allowance |
|
|
1,042 |
|
|
834 |
|
|
1,876 |
|
|
2,648 |
|
|
1,697 |
|
|
4,345 |
Provision charged to operations |
|
|
(16,746) |
|
|
(7,835) |
|
|
(24,581) |
|
|
(27,349) |
|
|
(13,689) |
|
|
(41,038) |
Balance at end of period |
|
$ |
89,837 |
|
$ |
28,424 |
|
$ |
118,261 |
|
$ |
89,837 |
|
$ |
28,424 |
|
$ |
118,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2020 |
|
Six Months Ended June 30, 2020 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
77,843 |
|
$ |
63,200 |
|
$ |
141,043 |
|
$ |
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 |
|
|
(1,590) |
|
|
(3,087) |
|
|
(4,677) |
|
|
(4,558) |
|
|
(7,270) |
|
|
(11,828) |
Recoveries credited to allowance |
|
|
708 |
|
|
703 |
|
|
1,411 |
|
|
1,862 |
|
|
1,709 |
|
|
3,571 |
Provision charged to operations |
|
|
34,993 |
|
|
(2,793) |
|
|
32,200 |
|
|
77,525 |
|
|
10,931 |
|
|
88,456 |
Balance at end of period |
|
$ |
111,954 |
|
$ |
58,023 |
|
$ |
169,977 |
|
$ |
111,954 |
|
$ |
58,023 |
|
$ |
169,977 |
Credit Quality Indicators
Credit quality indicators are utilized to help estimate the collectability of each loan class within the Commercial and Consumer loan segments. For classes of loans within the Commercial segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is risk rating categories of Pass, Watch, Special Mention, Substandard, and Doubtful. For classes of loans within the Consumer segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is delinquency bands of Current, 30-59, 60-89, 90+, and Nonaccrual. While other credit quality indicators are evaluated and analyzed as part of the Company’s credit risk management activities, these indicators are primarily used in estimating the ALLL. The Company evaluates the credit risk of its loan portfolio on at least a quarterly basis.
Commercial Loans
The Company uses a risk rating system as the primary credit quality indicator for classes of loans within the Commercial segment. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for credit loss. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows:
Pass is determined by the following criteria:
|
● |
Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; |
|
● |
Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; |
|
● |
Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; |
|
● |
Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; |
|
● |
Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan. |
Watch is determined by the following criteria:
|
● |
Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; |
Special Mention is determined by the following criteria:
|
● |
Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position. |
Substandard is determined by the following criteria:
|
● |
Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected. |
Doubtful is determined by the following criteria:
|
● |
Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; |
|
● |
Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. |
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 June 30, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
Prior |
|
Revolving Loans |
|
Total |
Construction and Land Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
169,737 |
|
$ |
284,804 |
|
$ |
136,881 |
|
$ |
79,204 |
|
$ |
19,754 |
|
$ |
54,558 |
|
$ |
14,405 |
|
$ |
759,343 |
Watch |
|
|
2,991 |
|
|
3,168 |
|
|
27,862 |
|
|
1,201 |
|
|
339 |
|
|
6,870 |
|
|
— |
|
|
42,431 |
Special Mention |
|
|
— |
|
|
— |
|
|
629 |
|
|
132 |
|
|
— |
|
|
1,102 |
|
|
— |
|
|
1,863 |
Substandard |
|
|
— |
|
|
— |
|
|
524 |
|
|
29,101 |
|
|
7 |
|
|
5,453 |
|
|
— |
|
|
35,085 |
Total Construction and Land Development |
|
$ |
172,728 |
|
$ |
287,972 |
|
$ |
165,896 |
|
$ |
109,638 |
|
$ |
20,100 |
|
$ |
67,983 |
|
$ |
14,405 |
|
$ |
838,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
107,413 |
|
$ |
282,904 |
|
$ |
318,170 |
|
$ |
275,683 |
|
$ |
214,996 |
|
$ |
634,229 |
|
$ |
24,428 |
|
$ |
1,857,823 |
Watch |
|
|
113 |
|
|
13,848 |
|
|
16,318 |
|
|
16,499 |
|
|
14,099 |
|
|
47,956 |
|
|
675 |
|
|
109,508 |
Special Mention |
|
|
— |
|
|
960 |
|
|
29,741 |
|
|
1,493 |
|
|
1,121 |
|
|
38,305 |
|
|
2,157 |
|
|
73,777 |
Substandard |
|
|
— |
|
|
— |
|
|
4,906 |
|
|
1,711 |
|
|
1,974 |
|
|
19,159 |
|
|
800 |
|
|
28,550 |
Total Commercial Real Estate - Owner Occupied |
|
$ |
107,526 |
|
$ |
297,712 |
|
$ |
369,135 |
|
$ |
295,386 |
|
$ |
232,190 |
|
$ |
739,649 |
|
$ |
28,060 |
|
$ |
2,069,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Non-Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
225,833 |
|
$ |
436,594 |
|
$ |
457,142 |
|
$ |
373,263 |
|
$ |
390,212 |
|
$ |
1,096,953 |
|
$ |
53,293 |
|
$ |
3,033,290 |
Watch |
|
|
12,557 |
|
|
8,991 |
|
|
104,690 |
|
|
65,828 |
|
|
39,917 |
|
|
205,843 |
|
|
384 |
|
|
438,210 |
Special Mention |
|
|
— |
|
|
693 |
|
|
70,587 |
|
|
42,248 |
|
|
18,436 |
|
|
42,236 |
|
|
218 |
|
|
174,418 |
Substandard |
|
|
— |
|
|
11,245 |
|
|
— |
|
|
13,170 |
|
|
9,318 |
|
|
32,956 |
|
|
— |
|
|
66,689 |
Total Commercial Real Estate - Non-Owner Occupied |
|
$ |
238,390 |
|
$ |
457,523 |
|
$ |
632,419 |
|
$ |
494,509 |
|
$ |
457,883 |
|
$ |
1,377,988 |
|
$ |
53,895 |
|
$ |
3,712,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
735,552 |
|
$ |
814,028 |
|
$ |
302,050 |
|
$ |
161,183 |
|
$ |
49,690 |
|
$ |
187,496 |
|
$ |
610,304 |
|
$ |
2,860,303 |
Watch |
|
|
193 |
|
|
12,537 |
|
|
24,828 |
|
|
19,606 |
|
|
5,032 |
|
|
5,377 |
|
|
24,102 |
|
|
91,675 |
Special Mention |
|
|
637 |
|
|
1,205 |
|
|
5,865 |
|
|
3,388 |
|
|
975 |
|
|
1,573 |
|
|
11,454 |
|
|
25,097 |
Substandard |
|
|
— |
|
|
56 |
|
|
4,602 |
|
|
1,216 |
|
|
274 |
|
|
2,223 |
|
|
5,176 |
|
|
13,547 |
Total Commercial & Industrial |
|
$ |
736,382 |
|
$ |
827,826 |
|
$ |
337,345 |
|
$ |
185,393 |
|
$ |
55,971 |
|
$ |
196,669 |
|
$ |
651,036 |
|
$ |
2,990,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
36,278 |
|
$ |
142,330 |
|
$ |
131,106 |
|
$ |
145,985 |
|
$ |
101,098 |
|
$ |
259,262 |
|
$ |
7,236 |
|
$ |
823,295 |
Watch |
|
|
— |
|
|
— |
|
|
4,367 |
|
|
465 |
|
|
— |
|
|
24,438 |
|
|
42 |
|
|
29,312 |
Special Mention |
|
|
— |
|
|
2,273 |
|
|
634 |
|
|
4,361 |
|
|
— |
|
|
93 |
|
|
— |
|
|
7,361 |
Substandard |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
113 |
|
|
— |
|
|
113 |
Total Multifamily Real Estate |
|
$ |
36,278 |
|
$ |
144,603 |
|
$ |
136,107 |
|
$ |
150,811 |
|
$ |
101,098 |
|
$ |
283,906 |
|
$ |
7,278 |
|
$ |
860,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
56,120 |
|
$ |
100,940 |
|
$ |
75,069 |
|
$ |
54,133 |
|
$ |
66,745 |
|
$ |
236,341 |
|
$ |
1,233 |
|
$ |
590,581 |
Watch |
|
|
— |
|
|
2,153 |
|
|
3,813 |
|
|
8,760 |
|
|
3,667 |
|
|
9,597 |
|
|
195 |
|
|
28,185 |
Special Mention |
|
|
163 |
|
|
— |
|
|
— |
|
|
450 |
|
|
426 |
|
|
6,124 |
|
|
— |
|
|
7,163 |
Substandard |
|
|
— |
|
|
— |
|
|
3,484 |
|
|
773 |
|
|
1,390 |
|
|
5,421 |
|
|
488 |
|
|
11,556 |
Total Residential 1-4 Family - Commercial |
|
$ |
56,283 |
|
$ |
103,093 |
|
$ |
82,366 |
|
$ |
64,116 |
|
$ |
72,228 |
|
$ |
257,483 |
|
$ |
1,916 |
|
$ |
637,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
147,863 |
|
$ |
206,752 |
|
$ |
108,972 |
|
$ |
6,247 |
|
$ |
26,650 |
|
$ |
53,072 |
|
$ |
16,252 |
|
$ |
565,808 |
Watch |
|
|
— |
|
|
— |
|
|
— |
|
|
597 |
|
|
1,273 |
|
|
5,071 |
|
|
800 |
|
|
7,741 |
Special Mention |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
204 |
|
|
26,144 |
|
|
26,352 |
Substandard |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
375 |
|
|
— |
|
|
375 |
Total Other Commercial |
|
$ |
147,863 |
|
$ |
206,752 |
|
$ |
108,972 |
|
$ |
6,844 |
|
$ |
27,927 |
|
$ |
58,722 |
|
$ |
43,196 |
|
$ |
600,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,478,796 |
|
$ |
2,268,352 |
|
$ |
1,529,390 |
|
$ |
1,095,698 |
|
$ |
869,145 |
|
$ |
2,521,911 |
|
$ |
727,151 |
|
$ |
10,490,443 |
Watch |
|
|
15,854 |
|
|
40,697 |
|
|
181,878 |
|
|
112,956 |
|
|
64,327 |
|
|
305,152 |
|
|
26,198 |
|
|
747,062 |
Special Mention |
|
|
800 |
|
|
5,131 |
|
|
107,456 |
|
|
52,072 |
|
|
20,962 |
|
|
89,637 |
|
|
39,973 |
|
|
316,031 |
Substandard |
|
|
— |
|
|
11,301 |
|
|
13,516 |
|
|
45,971 |
|
|
12,963 |
|
|
65,700 |
|
|
6,464 |
|
|
155,915 |
Total Commercial |
|
$ |
1,495,450 |
|
$ |
2,325,481 |
|
$ |
1,832,240 |
|
$ |
1,306,697 |
|
$ |
967,397 |
|
$ |
2,982,400 |
|
$ |
799,786 |
|
$ |
11,709,451 |
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 |
Special Mention |
|
|
702 |
|
|
11,072 |
|
|
34,905 |
|
|
18,073 |
|
|
40,771 |
|
|
11,211 |
|
|
723 |
|
|
117,457 |
Substandard |
|
|
246 |
|
|
— |
|
|
13,357 |
|
|
— |
|
|
25 |
|
|
6,986 |
|
|
— |
|
|
20,614 |
Total Commercial Real Estate - Non-Owner Occupied |
|
$ |
411,151 |
|
$ |
608,778 |
|
$ |
558,283 |
|
$ |
481,201 |
|
$ |
456,959 |
|
$ |
1,093,176 |
|
$ |
48,014 |
|
$ |
3,657,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,730,876 |
|
$ |
350,618 |
|
$ |
199,489 |
|
$ |
67,035 |
|
$ |
71,799 |
|
$ |
140,461 |
|
$ |
590,701 |
|
$ |
3,150,979 |
Watch |
|
|
4,872 |
|
|
32,028 |
|
|
13,073 |
|
|
6,500 |
|
|
3,182 |
|
|
4,906 |
|
|
19,972 |
|
|
84,533 |
Special Mention |
|
|
1,009 |
|
|
2,178 |
|
|
3,890 |
|
|
1,150 |
|
|
724 |
|
|
1,234 |
|
|
4,755 |
|
|
14,940 |
Substandard |
|
|
534 |
|
|
4,269 |
|
|
1,274 |
|
|
309 |
|
|
560 |
|
|
2,676 |
|
|
3,386 |
|
|
13,008 |
Total Commercial & Industrial |
|
$ |
1,737,291 |
|
$ |
389,093 |
|
$ |
217,726 |
|
$ |
74,994 |
|
$ |
76,265 |
|
$ |
149,277 |
|
$ |
618,814 |
|
$ |
3,263,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
144,805 |
|
$ |
85,740 |
|
$ |
150,724 |
|
$ |
117,881 |
|
$ |
67,984 |
|
$ |
231,113 |
|
$ |
2,311 |
|
$ |
800,558 |
Watch |
|
|
— |
|
|
5,074 |
|
|
475 |
|
|
— |
|
|
617 |
|
|
560 |
|
|
— |
|
|
6,726 |
Special Mention |
|
|
2,280 |
|
|
— |
|
|
4,388 |
|
|
— |
|
|
— |
|
|
760 |
|
|
— |
|
|
7,428 |
Substandard |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
— |
|
|
33 |
Total Multifamily Real Estate |
|
$ |
147,085 |
|
$ |
90,814 |
|
$ |
155,587 |
|
$ |
117,881 |
|
$ |
68,601 |
|
$ |
232,466 |
|
$ |
2,311 |
|
$ |
814,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
104,630 |
|
$ |
89,332 |
|
$ |
70,310 |
|
$ |
79,156 |
|
$ |
68,915 |
|
$ |
201,492 |
|
$ |
2,236 |
|
$ |
616,071 |
Watch |
|
|
666 |
|
|
6,665 |
|
|
8,252 |
|
|
4,141 |
|
|
4,067 |
|
|
9,307 |
|
|
195 |
|
|
33,293 |
Special Mention |
|
|
— |
|
|
— |
|
|
601 |
|
|
663 |
|
|
468 |
|
|
5,923 |
|
|
— |
|
|
7,655 |
Substandard |
|
|
644 |
|
|
793 |
|
|
4,913 |
|
|
1,995 |
|
|
986 |
|
|
5,111 |
|
|
488 |
|
|
14,930 |
Total Residential 1-4 Family - Commercial |
|
$ |
105,940 |
|
$ |
96,790 |
|
$ |
84,076 |
|
$ |
85,955 |
|
$ |
74,436 |
|
$ |
221,833 |
|
$ |
2,919 |
|
$ |
671,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
223,490 |
|
$ |
112,045 |
|
$ |
9,549 |
|
$ |
30,314 |
|
$ |
16,494 |
|
$ |
42,158 |
|
$ |
44,180 |
|
$ |
478,230 |
Watch |
|
|
— |
|
|
— |
|
|
613 |
|
|
1,299 |
|
|
1,189 |
|
|
3,934 |
|
|
— |
|
|
7,035 |
Special Mention |
|
|
10 |
|
|
— |
|
|
— |
|
|
7 |
|
|
— |
|
|
4,591 |
|
|
102 |
|
|
4,710 |
Total Other Commercial |
|
$ |
223,500 |
|
$ |
112,045 |
|
$ |
10,162 |
|
$ |
31,620 |
|
$ |
17,683 |
|
$ |
50,683 |
|
$ |
44,282 |
|
$ |
489,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
3,188,757 |
|
$ |
1,745,845 |
|
$ |
1,280,638 |
|
$ |
956,192 |
|
$ |
733,053 |
|
$ |
2,089,643 |
|
$ |
712,011 |
|
$ |
10,706,139 |
Watch |
|
|
37,707 |
|
|
218,838 |
|
|
129,909 |
|
|
87,358 |
|
|
115,922 |
|
|
291,384 |
|
|
39,097 |
|
|
920,215 |
Special Mention |
|
|
4,989 |
|
|
24,834 |
|
|
49,668 |
|
|
24,091 |
|
|
51,870 |
|
|
56,829 |
|
|
6,701 |
|
|
218,982 |
Substandard |
|
|
1,424 |
|
|
9,920 |
|
|
42,483 |
|
|
3,282 |
|
|
5,163 |
|
|
39,917 |
|
|
4,873 |
|
|
107,062 |
Total Commercial |
|
$ |
3,232,877 |
|
$ |
1,999,437 |
|
$ |
1,502,698 |
|
$ |
1,070,923 |
|
$ |
906,008 |
|
$ |
2,477,773 |
|
$ |
762,682 |
|
$ |
11,952,398 |
Consumer Loans
For Consumer loans, the Company evaluates credit quality based on the delinquency status of the loan. The following table details the amortized cost of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of June 30, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
Prior |
|
Revolving Loans |
|
Total |
Residential 1-4 Family - Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
129,493 |
|
$ |
198,964 |
|
$ |
68,060 |
|
$ |
45,005 |
|
$ |
55,929 |
|
$ |
307,923 |
|
$ |
11 |
|
$ |
805,385 |
30-59 Days Past Due |
|
|
— |
|
|
— |
|
|
89 |
|
|
— |
|
|
44 |
|
|
631 |
|
|
— |
|
|
764 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
117 |
|
|
— |
|
|
307 |
|
|
568 |
|
|
— |
|
|
992 |
90+ Days Past Due |
|
|
— |
|
|
161 |
|
|
194 |
|
|
20 |
|
|
— |
|
|
2,350 |
|
|
— |
|
|
2,725 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
85 |
|
|
908 |
|
|
887 |
|
|
11,609 |
|
|
— |
|
|
13,489 |
Total Residential 1-4 Family - Consumer |
|
$ |
129,493 |
|
$ |
199,125 |
|
$ |
68,545 |
|
$ |
45,933 |
|
$ |
57,167 |
|
$ |
323,081 |
|
$ |
11 |
|
$ |
823,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
2,639 |
|
$ |
10,741 |
|
$ |
2,660 |
|
$ |
1,256 |
|
$ |
— |
|
$ |
486 |
|
$ |
535,348 |
|
$ |
553,130 |
30-59 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
919 |
|
|
919 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
678 |
|
|
678 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
561 |
|
|
561 |
Nonaccrual |
|
|
— |
|
|
73 |
|
|
— |
|
|
20 |
|
|
— |
|
|
227 |
|
|
3,406 |
|
|
3,726 |
Total Residential 1-4 Family - Revolving |
|
$ |
2,639 |
|
$ |
10,814 |
|
$ |
2,660 |
|
$ |
1,276 |
|
$ |
— |
|
$ |
713 |
|
$ |
540,912 |
|
$ |
559,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
6,922 |
|
$ |
20,354 |
|
$ |
50,736 |
|
$ |
46,063 |
|
$ |
16,716 |
|
$ |
19,881 |
|
$ |
33,262 |
|
$ |
193,934 |
30-59 Days Past Due |
|
|
— |
|
|
21 |
|
|
104 |
|
|
154 |
|
|
51 |
|
|
201 |
|
|
14 |
|
|
545 |
60-89 Days Past Due |
|
|
— |
|
|
9 |
|
|
148 |
|
|
65 |
|
|
28 |
|
|
31 |
|
|
16 |
|
|
297 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
21 |
|
|
126 |
|
|
7 |
|
|
1 |
|
|
1 |
|
|
156 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
104 |
|
|
— |
|
|
104 |
Total Consumer |
|
$ |
6,922 |
|
$ |
20,384 |
|
$ |
51,009 |
|
$ |
46,408 |
|
$ |
16,802 |
|
$ |
20,218 |
|
$ |
33,293 |
|
$ |
195,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
85,151 |
|
$ |
151,237 |
|
$ |
92,687 |
|
$ |
42,811 |
|
$ |
23,624 |
|
$ |
13,718 |
|
$ |
— |
|
$ |
409,228 |
30-59 Days Past Due |
|
|
30 |
|
|
419 |
|
|
387 |
|
|
184 |
|
|
166 |
|
|
147 |
|
|
— |
|
|
1,333 |
60-89 Days Past Due |
|
|
50 |
|
|
19 |
|
|
26 |
|
|
52 |
|
|
10 |
|
|
8 |
|
|
— |
|
|
165 |
90+ Days Past Due |
|
|
— |
|
|
3 |
|
|
132 |
|
|
— |
|
|
18 |
|
|
15 |
|
|
— |
|
|
168 |
Nonaccrual |
|
|
— |
|
|
28 |
|
|
27 |
|
|
30 |
|
|
32 |
|
|
62 |
|
|
— |
|
|
179 |
Total Auto |
|
$ |
85,231 |
|
$ |
151,706 |
|
$ |
93,259 |
|
$ |
43,077 |
|
$ |
23,850 |
|
$ |
13,950 |
|
$ |
— |
|
$ |
411,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
224,205 |
|
$ |
381,296 |
|
$ |
214,143 |
|
$ |
135,135 |
|
$ |
96,269 |
|
$ |
342,008 |
|
$ |
568,621 |
|
$ |
1,961,677 |
30-59 Days Past Due |
|
|
30 |
|
|
440 |
|
|
580 |
|
|
338 |
|
|
261 |
|
|
979 |
|
|
933 |
|
|
3,561 |
60-89 Days Past Due |
|
|
50 |
|
|
28 |
|
|
291 |
|
|
117 |
|
|
345 |
|
|
607 |
|
|
694 |
|
|
2,132 |
90+ Days Past Due |
|
|
— |
|
|
164 |
|
|
347 |
|
|
146 |
|
|
25 |
|
|
2,366 |
|
|
562 |
|
|
3,610 |
Nonaccrual |
|
|
— |
|
|
101 |
|
|
112 |
|
|
958 |
|
|
919 |
|
|
12,002 |
|
|
3,406 |
|
|
17,498 |
Total Consumer |
|
$ |
224,285 |
|
$ |
382,029 |
|
$ |
215,473 |
|
$ |
136,694 |
|
$ |
97,819 |
|
$ |
357,962 |
|
$ |
574,216 |
|
$ |
1,988,478 |
The Company did not have any material revolving loans convert to term during the six months ended June 30, 2021.
The following table details the amortized cost of the classes of loans within the Consumer segment based on their delinquency status 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 |
Residential 1-4 Family - Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
213,763 |
|
$ |
75,133 |
|
$ |
64,299 |
|
$ |
68,320 |
|
$ |
102,123 |
|
$ |
269,203 |
|
$ |
11 |
|
$ |
792,852 |
30-59 Days Past Due |
|
|
678 |
|
|
181 |
|
|
2,243 |
|
|
516 |
|
|
457 |
|
|
6,107 |
|
|
— |
|
|
10,182 |
60-89 Days Past Due |
|
|
156 |
|
|
— |
|
|
57 |
|
|
679 |
|
|
— |
|
|
641 |
|
|
— |
|
|
1,533 |
90+ Days Past Due |
|
|
608 |
|
|
1,696 |
|
|
23 |
|
|
— |
|
|
1,246 |
|
|
2,126 |
|
|
— |
|
|
5,699 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
696 |
|
|
851 |
|
|
887 |
|
|
10,166 |
|
|
— |
|
|
12,600 |
Total Residential 1-4 Family - Consumer |
|
$ |
215,205 |
|
$ |
77,010 |
|
$ |
67,318 |
|
$ |
70,366 |
|
$ |
104,713 |
|
$ |
288,243 |
|
$ |
11 |
|
$ |
822,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
13,217 |
|
$ |
3,916 |
|
$ |
1,593 |
|
$ |
300 |
|
$ |
— |
|
$ |
636 |
|
$ |
567,860 |
|
$ |
587,522 |
30-59 Days Past Due |
|
|
70 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,905 |
|
|
2,975 |
60-89 Days Past Due |
|
|
53 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
991 |
|
|
1,044 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
826 |
|
|
826 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
21 |
|
|
— |
|
|
— |
|
|
227 |
|
|
4,381 |
|
|
4,629 |
Total Residential 1-4 Family - Revolving |
|
$ |
13,340 |
|
$ |
3,916 |
|
$ |
1,614 |
|
$ |
300 |
|
$ |
— |
|
$ |
863 |
|
$ |
576,963 |
|
$ |
596,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
26,498 |
|
$ |
68,208 |
|
$ |
67,041 |
|
$ |
22,464 |
|
$ |
9,997 |
|
$ |
15,893 |
|
$ |
35,450 |
|
$ |
245,551 |
30-59 Days Past Due |
|
|
35 |
|
|
252 |
|
|
504 |
|
|
98 |
|
|
15 |
|
|
143 |
|
|
119 |
|
|
1,166 |
60-89 Days Past Due |
|
|
28 |
|
|
176 |
|
|
317 |
|
|
23 |
|
|
— |
|
|
3 |
|
|
3 |
|
|
550 |
90+ Days Past Due |
|
|
5 |
|
|
84 |
|
|
242 |
|
|
4 |
|
|
— |
|
|
56 |
|
|
3 |
|
|
394 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
69 |
|
|
— |
|
|
69 |
Total Consumer |
|
$ |
26,566 |
|
$ |
68,720 |
|
$ |
68,104 |
|
$ |
22,589 |
|
$ |
10,012 |
|
$ |
16,164 |
|
$ |
35,575 |
|
$ |
247,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
171,051 |
|
$ |
115,319 |
|
$ |
55,886 |
|
$ |
32,555 |
|
$ |
17,081 |
|
$ |
6,314 |
|
$ |
— |
|
$ |
398,206 |
30-59 Days Past Due |
|
|
239 |
|
|
467 |
|
|
543 |
|
|
478 |
|
|
197 |
|
|
152 |
|
|
— |
|
|
2,076 |
60-89 Days Past Due |
|
|
124 |
|
|
150 |
|
|
— |
|
|
59 |
|
|
26 |
|
|
17 |
|
|
— |
|
|
376 |
90+ Days Past Due |
|
|
6 |
|
|
23 |
|
|
53 |
|
|
58 |
|
|
15 |
|
|
11 |
|
|
— |
|
|
166 |
Nonaccrual |
|
|
30 |
|
|
93 |
|
|
126 |
|
|
101 |
|
|
88 |
|
|
62 |
|
|
— |
|
|
500 |
Total Auto |
|
$ |
171,450 |
|
$ |
116,052 |
|
$ |
56,608 |
|
$ |
33,251 |
|
$ |
17,407 |
|
$ |
6,556 |
|
$ |
— |
|
$ |
401,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
424,529 |
|
$ |
262,576 |
|
$ |
188,819 |
|
$ |
123,639 |
|
$ |
129,201 |
|
$ |
292,046 |
|
$ |
603,321 |
|
$ |
2,024,131 |
30-59 Days Past Due |
|
|
1,022 |
|
|
900 |
|
|
3,290 |
|
|
1,092 |
|
|
669 |
|
|
6,402 |
|
|
3,024 |
|
|
16,399 |
60-89 Days Past Due |
|
|
361 |
|
|
326 |
|
|
374 |
|
|
761 |
|
|
26 |
|
|
661 |
|
|
994 |
|
|
3,503 |
90+ Days Past Due |
|
|
619 |
|
|
1,803 |
|
|
318 |
|
|
62 |
|
|
1,261 |
|
|
2,193 |
|
|
829 |
|
|
7,085 |
Nonaccrual |
|
|
30 |
|
|
93 |
|
|
843 |
|
|
952 |
|
|
975 |
|
|
10,524 |
|
|
4,381 |
|
|
17,798 |
Total Consumer |
|
$ |
426,561 |
|
$ |
265,698 |
|
$ |
193,644 |
|
$ |
126,506 |
|
$ |
132,132 |
|
$ |
311,826 |
|
$ |
612,549 |
|
$ |
2,068,916 |
The Company did not have any material revolving loans convert to term during the year ended December 31, 2020.
|