Quarterly report pursuant to Section 13 or 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES

v3.21.2
LOANS AND ALLOWANCE FOR LOAN LOSSES
9 Months Ended
Sep. 30, 2021
Loans and Allowance for Loan Losses [Abstract]  
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 September 30, 2021 and December 31, 2020 (dollars in thousands):

September 30, 2021

    

December 31, 2020

Construction and Land Development

$

877,351

$

925,798

Commercial Real Estate - Owner Occupied

 

2,027,299

 

2,128,909

Commercial Real Estate - Non-Owner Occupied

 

3,730,720

 

3,657,562

Multifamily Real Estate

 

776,287

 

814,745

Commercial & Industrial(1)

 

2,580,190

 

3,263,460

Residential 1-4 Family - Commercial

 

624,347

 

671,949

Residential 1-4 Family - Consumer

 

822,971

 

822,866

Residential 1-4 Family - Revolving

 

557,803

 

596,996

Auto

 

425,436

 

401,324

Consumer

 

182,039

 

247,730

Other Commercial(2)

 

535,143

 

489,975

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

13,139,586

14,021,314

Allowance for loan and lease losses

(101,798)

(160,540)

Total loans held for investment, net

$

13,037,788

$

13,860,774

(1) Commercial & industrial loans include approximately $455.8 million and $1.2 billion in loans from the PPP at September 30, 2021 and December 31, 2020, respectively.

(2) Other commercial loans include approximately $10.8 million and $11.3 million in loans from the PPP at September 30, 2021 and December 31, 2020, respectively.

(3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $60.0 million and $69.7 million as of September 30, 2021 and December 31, 2020, respectively.

The following table shows the aging of the Company’s loan portfolio, by class, at September 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

$

873,535

$

744

$

58

$

304

$

2,710

$

877,351

Commercial Real Estate - Owner Occupied

 

2,016,831

 

735

 

61

 

1,886

 

7,786

 

2,027,299

Commercial Real Estate - Non-Owner Occupied

 

3,723,499

 

1,302

 

570

 

1,175

 

4,174

 

3,730,720

Multifamily Real Estate

 

776,174

 

 

 

 

113

 

776,287

Commercial & Industrial

 

2,562,455

 

11,089

 

3,328

 

1,256

 

2,062

 

2,580,190

Residential 1-4 Family - Commercial

 

619,306

 

807

 

698

 

1,091

 

2,445

 

624,347

Residential 1-4 Family - Consumer

 

805,765

 

406

 

2,188

 

2,462

 

12,150

 

822,971

Residential 1-4 Family - Revolving

 

549,927

 

1,092

 

587

 

2,474

 

3,723

 

557,803

Auto

 

423,222

 

1,548

 

202

 

209

 

255

 

425,436

Consumer

 

180,705

 

790

 

317

 

173

 

54

 

182,039

Other Commercial

533,912

631

600

535,143

Total loans held for investment

$

13,065,331

$

19,144

$

8,609

$

11,030

$

35,472

$

13,139,586

% of total loans

99.43

%

0.15

%

0.07

%

0.08

%

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 September 30, 2021 (dollars in thousands):

Nonaccrual

January 1, 2021

September 30, 2021

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

$

3,072

$

2,710

$

1,985

$

304

Commercial Real Estate - Owner Occupied

7,128

7,786

1,996

1,886

Commercial Real Estate - Non-Owner Occupied

2,317

4,174

1,089

1,175

Multifamily Real Estate

33

113

Commercial & Industrial

2,107

2,062

1

1,256

Residential 1-4 Family - Commercial

9,993

2,445

-

1,091

Residential 1-4 Family - Consumer

12,600

12,150

1,047

2,462

Residential 1-4 Family - Revolving

4,629

3,723

60

2,474

Auto

500

255

209

Consumer

69

54

173

Total loans held for investment

$

42,448

$

35,472

$

6,178

$

11,030

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 nine months ended September 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

The CARES Act, as amended by the CAA, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of January 1, 2022 or 60 days after the end of the COVID-19 emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities also issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19. As of September 30, 2021, there were immaterial loans still under their modified terms. As of December 31, 2020, the Company had approximately $146.1 million in loans still under their modified terms.

As of September 30, 2021, the Company has TDRs totaling $18.7 million with an estimated $854,000 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 nine months ended September 30, 2021 and September 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 September 30, 2021 and December 31, 2020 (dollars in thousands):

September 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

$

205

$

 

4

$

215

$

Commercial Real Estate - Owner Occupied

 

4

 

1,003

 

 

6

 

2,033

 

176

Commercial Real Estate - Non-Owner Occupied

 

 

 

 

1

 

1,089

 

Commercial & Industrial

 

2

 

413

 

 

4

 

727

 

Residential 1-4 Family - Commercial

 

 

 

 

3

 

245

 

Residential 1-4 Family - Consumer

 

75

 

9,182

 

 

77

 

8,943

 

Residential 1-4 Family - Revolving

 

3

 

268

 

4

 

3

 

277

 

Consumer

 

2

 

16

 

 

3

 

22

 

Other Commercial

1

248

1

410

Total performing

 

91

$

11,335

$

4

 

102

$

13,961

$

176

Nonperforming

 

  

 

  

 

  

 

  

 

  

 

  

Commercial Real Estate - Owner Occupied

 

2

$

831

$

 

1

$

20

$

Commercial Real Estate - Non-Owner Occupied

3

1,366

1

134

Commercial & Industrial

 

4

 

362

 

 

3

 

237

 

Residential 1-4 Family - Commercial

 

3

 

393

 

 

4

 

1,296

 

Residential 1-4 Family - Consumer

 

24

 

4,312

 

 

23

 

4,865

 

Residential 1-4 Family - Revolving

 

3

 

101

 

 

3

 

103

 

Total nonperforming

 

39

$

7,365

$

 

35

$

6,655

$

Total performing and nonperforming

 

130

$

18,700

$

4

 

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 nine months ended September 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 nine months ended September 30, 2021 (dollars in thousands):

Three Months Ended September 30, 2021

Nine Months Ended September 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

 

  

 

  

 

  

 

  

Commercial Real Estate - Non-Owner Occupied

 

1

 

157

 

1

 

157

Residential 1-4 Family - Consumer

 

$

 

2

$

102

Total loan term extended at a market rate

 

1

$

157

 

3

$

259

Term modification, below market rate

 

  

 

  

 

  

 

  

Residential 1-4 Family - Consumer

 

$

 

11

$

1,813

Consumer

 

 

 

1

 

15

Total loan term extended at a below market rate

 

$

 

12

$

1,828

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

 

1

$

157

 

16

$

2,132

The following table shows, by class and modification type, TDRs that occurred during the three and nine months ended September 30, 2020 (dollars in thousands):

Three Months Ended September 30, 2020

Nine Months Ended September 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

 

  

 

  

 

  

 

  

Commercial Real Estate - Owner Occupied

$

1

$

272

Residential 1-4 Family - Commercial

 

1

652

 

1

652

Total interest only at market rate of interest

 

1

$

652

 

2

$

924

Term modification, at a market rate

 

  

 

  

 

  

 

  

Commercial & Industrial

 

$

 

3

$

127

Residential 1-4 Family - Commercial

 

1

 

299

 

1

 

299

Residential 1-4 Family - Consumer

 

 

 

4

 

324

Consumer

 

 

 

1

 

10

Total loan term extended at a market rate

 

1

$

299

 

9

$

760

Term modification, below market rate

 

  

 

  

 

  

 

  

Construction and Land Development

$

1

$

34

Commercial & Industrial

 

1

 

143

 

2

 

358

Residential 1-4 Family - Commercial

 

1

 

290

 

1

 

290

Residential 1-4 Family - Consumer

 

4

 

423

 

17

 

2,387

Residential 1-4 Family - Revolving

1

52

Total loan term extended at a below market rate

 

6

$

856

 

22

$

3,121

Interest rate modification, below market rate

 

  

 

  

 

  

 

  

Total interest only at below market rate of interest

 

$

 

$

Total

 

8

$

1,807

 

33

$

4,805

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 nine months ended September 30, 2021 and 2020 (dollars in thousands):

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Commercial

Consumer

Total

    

Commercial

Consumer

Total

Balance at beginning of period

$

89,837

$

28,424

$

118,261

$

117,403

$

43,137

$

160,540

Loans charged-off

 

(967)

 

(1,299)

 

(2,266)

 

 

(3,832)

 

(4,020)

 

(7,852)

Recoveries credited to allowance

 

1,281

 

872

 

2,153

 

3,929

 

2,569

 

6,498

Provision charged to operations

 

(15,173)

 

(1,177)

 

(16,350)

 

 

(42,522)

 

(14,866)

 

(57,388)

Balance at end of period

$

74,978

$

26,820

$

101,798

 

$

74,978

$

26,820

$

101,798

Three Months Ended September 30, 2020

Nine Months Ended September 30, 2020

Commercial

Consumer

Total

    

Commercial

Consumer

Total

Balance at beginning of period

$

111,954

$

58,023

$

169,977

 

$

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

 

(995)

 

(1,983)

 

(2,978)

 

 

(5,553)

 

(9,253)

 

(14,806)

Recoveries credited to allowance

 

718

 

848

 

1,566

 

 

2,580

 

2,557

 

5,137

Provision charged to operations

 

14,978

 

(9,421)

 

5,557

 

 

92,503

 

1,510

 

94,013

Balance at end of period

$

126,655

$

47,467

$

174,122

$

126,655

$

47,467

$

174,122

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 September 30, 2021 (dollars in thousands):

September 30, 2021

Term Loans Amortized Cost Basis by Origination Year

2021

2020

2019

2018

2017

Prior

Revolving Loans

Total

Construction and Land Development

Pass

$

305,044

$

265,805

$

107,223

$

46,770

$

17,980

$

50,365

$

23,429

$

816,616

Watch

545

657

24,401

538

335

6,255

32,731

Special Mention

2,742

1

181

303

3,227

Substandard

263

18,901

199

5,414

24,777

Total Construction and Land Development

$

308,331

$

266,463

$

132,068

$

66,209

$

18,514

$

62,337

$

23,429

$

877,351

Commercial Real Estate - Owner Occupied

Pass

$

161,174

$

286,458

$

310,041

$

266,173

$

202,234

$

588,315

$

19,484

$

1,833,879

Watch

187

25

11,745

16,141

17,279

48,534

903

94,814

Special Mention

201

945

24,706

1,486

1,112

30,264

1,001

59,715

Substandard

12,155

1,696

1,953

22,378

709

38,891

Total Commercial Real Estate - Owner Occupied

$

161,562

$

287,428

$

358,647

$

285,496

$

222,578

$

689,491

$

22,097

$

2,027,299

Commercial Real Estate - Non-Owner Occupied

Pass

$

360,208

$

439,673

$

531,065

$

370,114

$

391,043

$

1,161,218

$

56,566

$

3,309,887

Watch

14,549

8,528

29,797

53,599

11,463

76,680

16

194,632

Special Mention

10,649

29,923

31,347

14,062

30,133

116,114

Substandard

41,595

21,279

12,557

34,354

302

110,087

Total Commercial Real Estate - Non-Owner Occupied

$

374,757

$

458,850

$

632,380

$

476,339

$

429,125

$

1,302,385

$

56,884

$

3,730,720

Commercial & Industrial

Pass

$

725,216

$

534,948

$

302,159

$

147,127

$

42,624

$

168,224

$

577,089

$

2,497,387

Watch

173

3,808

2,526

21,778

4,571

4,855

14,322

52,033

Special Mention

221

1,343

8,417

1,924

906

659

2,135

15,605

Substandard

397

580

4,375

1,381

247

2,515

5,670

15,165

Total Commercial & Industrial

$

726,007

$

540,679

$

317,477

$

172,210

$

48,348

$

176,253

$

599,216

$

2,580,190

Multifamily Real Estate

Pass

$

41,843

$

163,955

$

89,602

$

136,569

$

79,594

$

250,115

$

1,597

$

763,275

Watch

4,336

463

532

5,331

Special Mention

2,261

629

4,544

92

42

7,568

Substandard

113

113

Total Multifamily Real Estate

$

41,843

$

166,216

$

94,567

$

141,576

$

79,594

$

250,852

$

1,639

$

776,287

Residential 1-4 Family - Commercial

Pass

$

85,081

$

96,580

$

68,972

$

50,528

$

61,335

$

215,176

$

917

$

578,589

Watch

2,047

6,727

7,494

3,708

8,772

314

29,062

Special Mention

160

97

455

409

4,957

6,078

Substandard

95

3,467

896

1,341

4,520

299

10,618

Total Residential 1-4 Family - Commercial

$

85,336

$

98,724

$

79,166

$

59,373

$

66,793

$

233,425

$

1,530

$

624,347

Other Commercial

Pass

$

145,656

$

173,414

$

105,143

$

5,995

$

26,284

$

50,631

$

13,425

$

520,548

Watch

589

1,259

4,563

6,411

Special Mention

3

203

7,730

7,936

Substandard

248

248

Total Other Commercial

$

145,656

$

173,414

$

105,143

$

6,584

$

27,546

$

55,645

$

21,155

$

535,143

Total Commercial

Pass

$

1,824,222

$

1,960,833

$

1,514,205

$

1,023,276

$

821,094

$

2,484,044

$

692,507

$

10,320,181

Watch

15,454

15,065

79,532

100,602

38,615

150,191

15,555

415,014

Special Mention

3,324

15,296

63,856

39,756

16,492

66,611

10,908

216,243

Substandard

492

580

61,855

44,153

16,297

69,542

6,980

199,899

Total Commercial

$

1,843,492

$

1,991,774

$

1,719,448

$

1,207,787

$

892,498

$

2,770,388

$

725,950

$

11,151,337

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 September 30, 2021 (dollars in thousands):

September 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

$

194,184

$

190,849

$

57,249

$

37,678

$

49,080

$

276,715

$

10

$

805,765

30-59 Days Past Due

117

159

47

83

406

60-89 Days Past Due

305

1,883

2,188

90+ Days Past Due

451

46

20

1,945

2,462

Nonaccrual

899

1,361

9,890

12,150

Total Residential 1-4 Family - Consumer

$

194,635

$

190,849

$

57,412

$

38,756

$

50,793

$

290,516

$

10

$

822,971

Residential 1-4 Family - Revolving

Current

$

6,418

$

10,327

$

2,343

$

1,176

$

$

487

$

529,176

$

549,927

30-59 Days Past Due

1,092

1,092

60-89 Days Past Due

587

587

90+ Days Past Due

2,474

2,474

Nonaccrual

64

19

227

3,413

3,723

Total Residential 1-4 Family - Revolving

$

6,418

$

10,391

$

2,343

$

1,195

$

$

714

$

536,742

$

557,803

Consumer

Current

$

14,576

$

17,830

$

44,158

$

37,069

$

14,446

$

17,697

$

34,929

$

180,705

30-59 Days Past Due

9

28

287

180

49

224

13

790

60-89 Days Past Due

1

35

53

166

7

4

51

317

90+ Days Past Due

3

31

88

10

24

17

173

Nonaccrual

54

54

Total Consumer

$

14,586

$

17,896

$

44,529

$

37,503

$

14,512

$

18,003

$

35,010

$

182,039

Auto

Current

$

138,193

$

136,530

$

81,956

$

36,844

$

19,660

$

10,039

$

$

423,222

30-59 Days Past Due

79

477

423

227

190

152

1,548

60-89 Days Past Due

81

58

45

14

4

202

90+ Days Past Due

101

15

75

6

12

209

Nonaccrual

98

75

11

29

42

255

Total Auto

$

138,373

$

137,201

$

82,587

$

37,133

$

19,893

$

10,249

$

$

425,436

Total Consumer

Current

$

353,371

$

355,536

$

185,706

$

112,767

$

83,186

$

304,938

$

564,115

$

1,959,619

30-59 Days Past Due

88

505

827

566

286

459

1,105

3,836

60-89 Days Past Due

1

116

111

211

326

1,891

638

3,294

90+ Days Past Due

552

18

152

114

10

1,981

2,491

5,318

Nonaccrual

162

75

929

1,390

10,213

3,413

16,182

Total Consumer

$

354,012

$

356,337

$

186,871

$

114,587

$

85,198

$

319,482

$

571,762

$

1,988,249

The Company did not have any material revolving loans convert to term during the nine months ended September 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.