LOANS AND ALLOWANCE FOR LOAN LOSSES |
4. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
On January 1, 2020, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1 “Summary of Significant Accounting Policies” in this Form 10-K. All loan information presented as of December 31, 2021 and 2020 is in accordance with ASC 326. All loan information presented prior to January 1, 2020 is in accordance with previous applicable GAAP.
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 this Form 10-K for information about COVID-19 and related legislative and regulatory developments.
Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2021 and 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
Construction and Land Development |
|
$ |
862,236 |
|
$ |
925,798 |
Commercial Real Estate - Owner Occupied |
|
|
1,995,409 |
|
|
2,128,909 |
Commercial Real Estate - Non-Owner Occupied |
|
|
3,789,377 |
|
|
3,657,562 |
Multifamily Real Estate |
|
|
778,626 |
|
|
814,745 |
Commercial & Industrial(1) |
|
|
2,542,243 |
|
|
3,263,460 |
Residential 1-4 Family - Commercial |
|
|
607,337 |
|
|
671,949 |
Residential 1-4 Family - Consumer |
|
|
816,524 |
|
|
822,866 |
Residential 1-4 Family - Revolving |
|
|
560,796 |
|
|
596,996 |
Auto |
|
|
461,052 |
|
|
401,324 |
Consumer |
|
|
176,992 |
|
|
247,730 |
Other Commercial(2) |
|
|
605,251 |
|
|
489,975 |
Total LHFI, net of deferred fees and costs(3) |
|
|
13,195,843 |
|
|
14,021,314 |
Allowance for loan and lease losses |
|
|
(99,787) |
|
|
(160,540) |
Total LHFI, net |
|
$ |
13,096,056 |
|
$ |
13,860,774 |
(1)Commercial & industrial loans include approximately $145.3 million and $1.2 billion in loans from the PPP at December 31, 2021 and December 31, 2020, respectively.
(2)Other commercial loans include approximately $5.1 million and $11.3 million in loans from the PPP at December 31, 2021 and, December 31, 2020, respectively.
(3)Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $49.3 million and $69.7 million as of December 31, 2021 and December 31, 2020, respectively.
The following table shows the aging of the Company’s loan portfolio, by class, at December 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 |
|
$ |
857,883 |
|
$ |
1,357 |
|
$ |
— |
|
$ |
299 |
|
$ |
2,697 |
|
$ |
862,236 |
|
Commercial Real Estate - Owner Occupied |
|
|
1,987,133 |
|
|
1,230 |
|
|
152 |
|
|
1,257 |
|
|
5,637 |
|
|
1,995,409 |
|
Commercial Real Estate - Non-Owner Occupied |
|
|
3,783,211 |
|
|
1,965 |
|
|
127 |
|
|
433 |
|
|
3,641 |
|
|
3,789,377 |
|
Multifamily Real Estate |
|
|
778,429 |
|
|
84 |
|
|
— |
|
|
— |
|
|
113 |
|
|
778,626 |
|
Commercial & Industrial |
|
|
2,536,100 |
|
|
1,161 |
|
|
1,438 |
|
|
1,897 |
|
|
1,647 |
|
|
2,542,243 |
|
Residential 1-4 Family - Commercial |
|
|
601,946 |
|
|
1,844 |
|
|
272 |
|
|
990 |
|
|
2,285 |
|
|
607,337 |
|
Residential 1-4 Family - Consumer |
|
|
795,821 |
|
|
3,368 |
|
|
2,925 |
|
|
3,013 |
|
|
11,397 |
|
|
816,524 |
|
Residential 1-4 Family - Revolving |
|
|
554,652 |
|
|
1,493 |
|
|
363 |
|
|
882 |
|
|
3,406 |
|
|
560,796 |
|
Auto |
|
|
458,473 |
|
|
1,866 |
|
|
249 |
|
|
241 |
|
|
223 |
|
|
461,052 |
|
Consumer |
|
|
175,943 |
|
|
689 |
|
|
186 |
|
|
120 |
|
|
54 |
|
|
176,992 |
|
Other Commercial |
|
|
605,214 |
|
|
37 |
|
|
— |
|
|
— |
|
|
— |
|
|
605,251 |
|
Total LHFI |
|
$ |
13,134,805 |
|
$ |
15,094 |
|
$ |
5,712 |
|
$ |
9,132 |
|
$ |
31,100 |
|
$ |
13,195,843 |
|
% of total loans |
|
|
99.54 |
% |
|
0.11 |
% |
|
0.04 |
% |
|
0.07 |
% |
|
0.24 |
% |
|
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 LHFI |
|
$ |
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 December 31, 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, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
|
|
|
|
|
|
|
December 31, 2020 |
|
December 31, 2021 |
|
Nonaccrual With No ALLL |
|
90 Days Past due and still Accruing |
Construction and Land Development |
|
$ |
3,072 |
|
$ |
2,697 |
|
$ |
1,985 |
|
$ |
299 |
Commercial Real Estate - Owner Occupied |
|
|
7,128 |
|
|
5,637 |
|
|
970 |
|
|
1,257 |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,317 |
|
|
3,641 |
|
|
1,089 |
|
|
433 |
Multifamily Real Estate |
|
|
33 |
|
|
113 |
|
|
— |
|
|
— |
Commercial & Industrial |
|
|
2,107 |
|
|
1,647 |
|
|
1 |
|
|
1,897 |
Residential 1-4 Family - Commercial |
|
|
9,993 |
|
|
2,285 |
|
|
— |
|
|
990 |
Residential 1-4 Family - Consumer |
|
|
12,600 |
|
|
11,397 |
|
|
— |
|
|
3,013 |
Residential 1-4 Family - Revolving |
|
|
4,629 |
|
|
3,406 |
|
|
— |
|
|
882 |
Auto |
|
|
500 |
|
|
223 |
|
|
— |
|
|
241 |
Consumer |
|
|
69 |
|
|
54 |
|
|
— |
|
|
120 |
Total LHFI |
|
$ |
42,448 |
|
$ |
31,100 |
|
$ |
4,045 |
|
$ |
9,132 |
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 Past due 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 LHFI |
|
$ |
45,204 |
|
$ |
42,448 |
|
$ |
11,497 |
|
$ |
13,634 |
There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021 and 2020. See Note 1 “Summary of Significant Accounting Policies” 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 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. As of December 31, 2021, there were no material 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. The Company’s modification program primarily included payment deferrals and interest only modifications.
As of December 31, 2021, the Company has TDRs totaling $18.0 million with an estimated $859,000 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 TDR occurs when a lender, for economic or legal reasons, grants a concession to the borrower related to the borrower’s financial difficulties, that it would not otherwise consider. All loans that are considered to be TDRs are evaluated for credit losses in accordance with the Company’s ALLL methodology. For the years ended December 31, 2021 and 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 December 31, 2021 and 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 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 |
|
$ |
201 |
|
$ |
— |
|
4 |
|
$ |
215 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
3 |
|
|
572 |
|
|
— |
|
6 |
|
|
2,033 |
|
|
176 |
Commercial Real Estate - Non-Owner Occupied |
|
— |
|
|
— |
|
|
— |
|
1 |
|
|
1,089 |
|
|
— |
Commercial & Industrial |
|
— |
|
|
— |
|
|
— |
|
4 |
|
|
727 |
|
|
— |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
|
— |
|
3 |
|
|
245 |
|
|
— |
Residential 1-4 Family - Consumer |
|
75 |
|
|
9,021 |
|
|
— |
|
77 |
|
|
8,943 |
|
|
— |
Residential 1-4 Family - Revolving |
|
3 |
|
|
265 |
|
|
4 |
|
3 |
|
|
277 |
|
|
— |
Consumer |
|
2 |
|
|
15 |
|
|
— |
|
3 |
|
|
22 |
|
|
— |
Other Commercial |
|
1 |
|
|
239 |
|
|
— |
|
1 |
|
|
410 |
|
|
— |
Total performing |
|
88 |
|
$ |
10,313 |
|
$ |
4 |
|
102 |
|
$ |
13,961 |
|
$ |
176 |
Nonperforming |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied |
|
2 |
|
$ |
830 |
|
$ |
— |
|
1 |
|
$ |
20 |
|
$ |
— |
Commercial Real Estate - Non-Owner Occupied |
|
3 |
|
|
1,357 |
|
|
— |
|
1 |
|
|
134 |
|
|
— |
Commercial & Industrial |
|
3 |
|
|
729 |
|
|
— |
|
3 |
|
|
237 |
|
|
— |
Residential 1-4 Family - Commercial |
|
3 |
|
|
388 |
|
|
— |
|
4 |
|
|
1,296 |
|
|
— |
Residential 1-4 Family - Consumer |
|
24 |
|
|
4,239 |
|
|
— |
|
23 |
|
|
4,865 |
|
|
— |
Residential 1-4 Family - Revolving |
|
3 |
|
|
99 |
|
|
— |
|
3 |
|
|
103 |
|
|
— |
Total nonperforming |
|
38 |
|
$ |
7,642 |
|
$ |
— |
|
35 |
|
$ |
6,655 |
|
$ |
— |
Total performing and nonperforming |
|
126 |
|
$ |
17,955 |
|
$ |
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 years ended December 31, 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 year ended December 31, 2021 and 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
All Restructurings |
|
|
2021 |
|
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 |
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Commercial |
|
— |
|
$ |
— |
|
1 |
|
|
644 |
Total interest only at market rate of interest |
|
— |
|
$ |
— |
|
1 |
|
$ |
644 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, at a market rate |
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
— |
|
$ |
— |
|
3 |
|
|
103 |
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
|
153 |
|
— |
|
|
— |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
1 |
|
|
294 |
Residential 1-4 Family - Consumer |
|
2 |
|
|
101 |
|
4 |
|
|
320 |
Consumer |
|
— |
|
|
— |
|
1 |
|
|
9 |
Total loan term extended at a market rate |
|
3 |
|
$ |
254 |
|
9 |
|
$ |
726 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
— |
|
$ |
— |
|
1 |
|
$ |
34 |
Commercial & Industrial |
|
— |
|
|
— |
|
2 |
|
|
355 |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
1 |
|
|
287 |
Residential 1-4 Family - Consumer |
|
12 |
|
|
1,810 |
|
18 |
|
|
2,519 |
Residential 1-4 Family - Revolving |
|
— |
|
|
— |
|
2 |
|
|
275 |
Consumer |
|
1 |
|
|
15 |
|
— |
|
|
— |
Total loan term extended at a below market rate |
|
13 |
|
$ |
1,825 |
|
24 |
|
$ |
3,470 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
17 |
|
$ |
2,124 |
|
34 |
|
$ |
4,840 |
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 years ended December 31, 2021 and 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2021 |
|
Year Ended December 31, 2020 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
117,403 |
|
$ |
43,137 |
|
$ |
160,540 |
|
$ |
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 |
|
|
(5,186) |
|
|
(4,897) |
|
|
(10,083) |
|
|
(6,671) |
|
|
(11,522) |
|
|
(18,193) |
Recoveries credited to allowance |
|
|
4,915 |
|
|
3,303 |
|
|
8,218 |
|
|
3,517 |
|
|
3,238 |
|
|
6,755 |
Provision charged to operations |
|
|
(39,230) |
|
|
(19,658) |
|
|
(58,888) |
|
|
83,432 |
|
|
(1,232) |
|
|
82,200 |
Balance at end of period |
|
$ |
77,902 |
|
$ |
21,885 |
|
$ |
99,787 |
|
$ |
117,403 |
|
$ |
43,137 |
|
$ |
160,540 |
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 ACL. 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 December 31, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
Prior |
|
Revolving Loans |
|
Total |
Construction and Land Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
430,764 |
|
$ |
218,672 |
|
$ |
39,937 |
|
$ |
40,128 |
|
$ |
11,299 |
|
$ |
50,908 |
|
$ |
22,996 |
|
$ |
814,704 |
Watch |
|
|
395 |
|
|
185 |
|
|
12,923 |
|
|
129 |
|
|
349 |
|
|
4,026 |
|
|
- |
|
|
18,007 |
Special Mention |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
735 |
|
|
- |
|
|
735 |
Substandard |
|
|
3,541 |
|
|
1 |
|
|
221 |
|
|
19,264 |
|
|
198 |
|
|
5,565 |
|
|
- |
|
|
28,790 |
Total Construction and Land Development |
|
$ |
434,700 |
|
$ |
218,858 |
|
$ |
53,081 |
|
$ |
59,521 |
|
$ |
11,846 |
|
$ |
61,234 |
|
$ |
22,996 |
|
$ |
862,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
222,079 |
|
$ |
279,165 |
|
$ |
321,503 |
|
$ |
263,422 |
|
$ |
179,994 |
|
$ |
555,540 |
|
$ |
19,705 |
|
$ |
1,841,408 |
Watch |
|
|
185 |
|
|
18 |
|
|
7,959 |
|
|
10,875 |
|
|
14,648 |
|
|
57,466 |
|
|
702 |
|
|
91,853 |
Special Mention |
|
|
- |
|
|
932 |
|
|
11,826 |
|
|
610 |
|
|
1,052 |
|
|
19,480 |
|
|
507 |
|
|
34,407 |
Substandard |
|
|
200 |
|
|
153 |
|
|
7,455 |
|
|
2,538 |
|
|
1,935 |
|
|
14,834 |
|
|
626 |
|
|
27,741 |
Total Commercial Real Estate - Owner Occupied |
|
$ |
222,464 |
|
$ |
280,268 |
|
$ |
348,743 |
|
$ |
277,445 |
|
$ |
197,629 |
|
$ |
647,320 |
|
$ |
21,540 |
|
$ |
1,995,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Non-Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
642,386 |
|
$ |
421,063 |
|
$ |
520,035 |
|
$ |
377,176 |
|
$ |
374,949 |
|
$ |
1,102,193 |
|
$ |
36,568 |
|
$ |
3,474,370 |
Watch |
|
|
2,152 |
|
|
841 |
|
|
35,721 |
|
|
39,356 |
|
|
18,242 |
|
|
101,797 |
|
|
14 |
|
|
198,123 |
Special Mention |
|
|
- |
|
|
10,609 |
|
|
25,691 |
|
|
20,119 |
|
|
12,741 |
|
|
4,775 |
|
|
— |
|
|
73,935 |
Substandard |
|
|
- |
|
|
- |
|
|
23,376 |
|
|
11,369 |
|
|
— |
|
|
7,952 |
|
|
252 |
|
|
42,949 |
Total Commercial Real Estate - Non-Owner Occupied |
|
$ |
644,538 |
|
$ |
432,513 |
|
$ |
604,823 |
|
$ |
448,020 |
|
$ |
405,932 |
|
$ |
1,216,717 |
|
$ |
36,834 |
|
$ |
3,789,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
770,662 |
|
$ |
450,478 |
|
$ |
287,926 |
|
$ |
110,710 |
|
$ |
38,395 |
|
$ |
170,857 |
|
$ |
619,583 |
|
$ |
2,448,611 |
Watch |
|
|
1,233 |
|
|
9,641 |
|
|
2,766 |
|
|
31,635 |
|
|
1,370 |
|
|
4,405 |
|
|
17,220 |
|
|
68,270 |
Special Mention |
|
|
206 |
|
|
935 |
|
|
8,477 |
|
|
1,023 |
|
|
564 |
|
|
561 |
|
|
3,249 |
|
|
15,015 |
Substandard |
|
|
379 |
|
|
575 |
|
|
3,636 |
|
|
1,965 |
|
|
463 |
|
|
1,639 |
|
|
1,690 |
|
|
10,347 |
Total Commercial & Industrial |
|
$ |
772,480 |
|
$ |
461,629 |
|
$ |
302,805 |
|
$ |
145,333 |
|
$ |
40,792 |
|
$ |
177,462 |
|
$ |
641,742 |
|
$ |
2,542,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
63,431 |
|
$ |
187,616 |
|
$ |
108,402 |
|
$ |
114,077 |
|
$ |
66,562 |
|
$ |
228,013 |
|
$ |
1,548 |
|
$ |
769,649 |
Watch |
|
|
— |
|
|
— |
|
|
359 |
|
|
459 |
|
|
— |
|
|
522 |
|
|
— |
|
|
1,340 |
Special Mention |
|
|
44 |
|
|
2,248 |
|
|
624 |
|
|
4,517 |
|
|
— |
|
|
91 |
|
|
— |
|
|
7,524 |
Substandard |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
113 |
|
|
— |
|
|
113 |
Total Multifamily Real Estate |
|
$ |
63,475 |
|
$ |
189,864 |
|
$ |
109,385 |
|
$ |
119,053 |
|
$ |
66,562 |
|
$ |
228,739 |
|
$ |
1,548 |
|
$ |
778,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
108,259 |
|
$ |
94,184 |
|
$ |
65,682 |
|
$ |
46,267 |
|
$ |
55,995 |
|
$ |
196,052 |
|
$ |
550 |
|
$ |
566,989 |
Watch |
|
|
— |
|
|
2,041 |
|
|
4,887 |
|
|
7,483 |
|
|
2,415 |
|
|
7,573 |
|
|
311 |
|
|
24,710 |
Special Mention |
|
|
— |
|
|
96 |
|
|
— |
|
|
436 |
|
|
391 |
|
|
4,126 |
|
|
— |
|
|
5,049 |
Substandard |
|
|
93 |
|
|
— |
|
|
3,494 |
|
|
536 |
|
|
1,291 |
|
|
4,876 |
|
|
299 |
|
|
10,589 |
Total Residential 1-4 Family - Commercial |
|
$ |
108,352 |
|
$ |
96,321 |
|
$ |
74,063 |
|
$ |
54,722 |
|
$ |
60,092 |
|
$ |
212,627 |
|
$ |
1,160 |
|
$ |
607,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
226,595 |
|
$ |
167,497 |
|
$ |
98,848 |
|
$ |
5,620 |
|
$ |
25,723 |
|
$ |
44,114 |
|
$ |
30,445 |
|
$ |
598,842 |
Watch |
|
|
— |
|
|
— |
|
|
— |
|
|
581 |
|
|
1,246 |
|
|
4,341 |
|
|
— |
|
|
6,168 |
Special Mention |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
Substandard |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
239 |
|
|
— |
|
|
239 |
Total Other Commercial |
|
$ |
226,595 |
|
$ |
167,497 |
|
$ |
98,848 |
|
$ |
6,201 |
|
$ |
26,971 |
|
$ |
48,694 |
|
$ |
30,445 |
|
$ |
605,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
2,464,176 |
|
$ |
1,818,675 |
|
$ |
1,442,333 |
|
$ |
957,400 |
|
$ |
752,917 |
|
$ |
2,347,677 |
|
$ |
731,395 |
|
$ |
10,514,573 |
Watch |
|
|
3,965 |
|
|
12,726 |
|
|
64,615 |
|
|
90,518 |
|
|
38,270 |
|
|
180,130 |
|
|
18,247 |
|
|
408,471 |
Special Mention |
|
|
250 |
|
|
14,820 |
|
|
46,618 |
|
|
26,705 |
|
|
14,750 |
|
|
29,768 |
|
|
3,756 |
|
|
136,667 |
Substandard |
|
|
4,213 |
|
|
729 |
|
|
38,182 |
|
|
35,672 |
|
|
3,887 |
|
|
35,218 |
|
|
2,867 |
|
|
120,768 |
Total Commercial |
|
$ |
2,472,604 |
|
$ |
1,846,950 |
|
$ |
1,591,748 |
|
$ |
1,110,295 |
|
$ |
809,824 |
|
$ |
2,592,793 |
|
$ |
756,265 |
|
$ |
11,180,479 |
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 December 31, 2021 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
Prior |
|
Revolving Loans |
|
Total |
Residential 1-4 Family - Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
248,904 |
|
$ |
174,459 |
|
$ |
47,905 |
|
$ |
33,809 |
|
$ |
44,179 |
|
$ |
246,554 |
|
$ |
11 |
|
$ |
795,821 |
30-59 Days Past Due |
|
|
— |
|
|
157 |
|
|
143 |
|
|
807 |
|
|
460 |
|
|
1,801 |
|
|
— |
|
|
3,368 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
624 |
|
|
107 |
|
|
2,194 |
|
|
— |
|
|
2,925 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
46 |
|
|
20 |
|
|
304 |
|
|
2,643 |
|
|
— |
|
|
3,013 |
Nonaccrual |
|
|
444 |
|
|
— |
|
|
117 |
|
|
884 |
|
|
1,330 |
|
|
8,622 |
|
|
— |
|
|
11,397 |
Total Residential 1-4 Family - Consumer |
|
$ |
249,348 |
|
$ |
174,616 |
|
$ |
48,211 |
|
$ |
36,144 |
|
$ |
46,380 |
|
$ |
261,814 |
|
$ |
11 |
|
$ |
816,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
16,546 |
|
$ |
9,511 |
|
$ |
2,230 |
|
$ |
1,056 |
|
$ |
— |
|
$ |
484 |
|
$ |
524,825 |
|
$ |
554,652 |
30-59 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,493 |
|
|
1,493 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
363 |
|
|
363 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
882 |
|
|
882 |
Nonaccrual |
|
|
— |
|
|
63 |
|
|
— |
|
|
18 |
|
|
— |
|
|
— |
|
|
3,325 |
|
|
3,406 |
Total Residential 1-4 Family - Revolving |
|
$ |
16,546 |
|
$ |
9,574 |
|
$ |
2,230 |
|
$ |
1,074 |
|
$ |
— |
|
$ |
484 |
|
$ |
530,888 |
|
$ |
560,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
207,229 |
|
$ |
123,848 |
|
$ |
72,427 |
|
$ |
31,745 |
|
$ |
16,020 |
|
$ |
7,204 |
|
$ |
— |
|
$ |
458,473 |
30-59 Days Past Due |
|
|
299 |
|
|
382 |
|
|
518 |
|
|
259 |
|
|
245 |
|
|
163 |
|
|
— |
|
|
1,866 |
60-89 Days Past Due |
|
|
45 |
|
|
29 |
|
|
95 |
|
|
33 |
|
|
36 |
|
|
11 |
|
|
— |
|
|
249 |
90+ Days Past Due |
|
|
55 |
|
|
101 |
|
|
42 |
|
|
20 |
|
|
23 |
|
|
— |
|
|
— |
|
|
241 |
Nonaccrual |
|
|
— |
|
|
81 |
|
|
55 |
|
|
27 |
|
|
27 |
|
|
33 |
|
|
— |
|
|
223 |
Total Auto |
|
$ |
207,628 |
|
$ |
124,441 |
|
$ |
73,137 |
|
$ |
32,084 |
|
$ |
16,351 |
|
$ |
7,411 |
|
$ |
— |
|
$ |
461,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
25,084 |
|
$ |
16,059 |
|
$ |
38,594 |
|
$ |
30,890 |
|
$ |
12,853 |
|
$ |
16,929 |
|
$ |
35,534 |
|
$ |
175,943 |
30-59 Days Past Due |
|
|
31 |
|
|
94 |
|
|
201 |
|
|
186 |
|
|
63 |
|
|
26 |
|
|
88 |
|
|
689 |
60-89 Days Past Due |
|
|
11 |
|
|
13 |
|
|
62 |
|
|
60 |
|
|
34 |
|
|
— |
|
|
6 |
|
|
186 |
90+ Days Past Due |
|
|
1 |
|
|
4 |
|
|
33 |
|
|
72 |
|
|
8 |
|
|
— |
|
|
2 |
|
|
120 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
54 |
|
|
— |
|
|
54 |
Total Consumer |
|
$ |
25,127 |
|
$ |
16,170 |
|
$ |
38,890 |
|
$ |
31,208 |
|
$ |
12,958 |
|
$ |
17,009 |
|
$ |
35,630 |
|
$ |
176,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
497,763 |
|
$ |
323,877 |
|
$ |
161,156 |
|
$ |
97,500 |
|
$ |
73,052 |
|
$ |
271,171 |
|
$ |
560,370 |
|
$ |
1,984,889 |
30-59 Days Past Due |
|
|
330 |
|
|
633 |
|
|
862 |
|
|
1,252 |
|
|
768 |
|
|
1,990 |
|
|
1,581 |
|
|
7,416 |
60-89 Days Past Due |
|
|
56 |
|
|
42 |
|
|
157 |
|
|
717 |
|
|
177 |
|
|
2,205 |
|
|
369 |
|
|
3,723 |
90+ Days Past Due |
|
|
56 |
|
|
105 |
|
|
121 |
|
|
112 |
|
|
335 |
|
|
2,643 |
|
|
884 |
|
|
4,256 |
Nonaccrual |
|
|
444 |
|
|
144 |
|
|
172 |
|
|
929 |
|
|
1,357 |
|
|
8,709 |
|
|
3,325 |
|
|
15,080 |
Total Consumer |
|
$ |
498,649 |
|
$ |
324,801 |
|
$ |
162,468 |
|
$ |
100,510 |
|
$ |
75,689 |
|
$ |
286,718 |
|
$ |
566,529 |
|
$ |
2,015,364 |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 years ended December 31, 2021 and 2020.
Acquired Loans
The Company has purchased loans that, at the time of acquisition, exhibited more than insignificant credit deterioration since origination. The Company elected to treat all loans that were previously identified as PCI as PCD.
Prior to the adoption of ASC 326
Nonaccrual loans totaled $28.2 million at December 31, 2019. Had these loans performed in accordance with their original terms, interest income of approximately $1.8 million would have been recorded in 2019. All nonaccrual loans were included in the impaired loan disclosure in 2019.
As of December 31, 2019, the Company measured the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by class for the years ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
|
|
|
|
Interest |
|
|
Average |
|
Income |
|
|
Investment |
|
Recognized |
Construction and Land Development |
|
$ |
6,764 |
|
$ |
110 |
Commercial Real Estate - Owner Occupied |
|
|
12,258 |
|
|
323 |
Commercial Real Estate - Non-Owner Occupied |
|
|
4,775 |
|
|
147 |
Commercial & Industrial |
|
|
6,438 |
|
|
293 |
Residential 1-4 Family - Commercial |
|
|
6,145 |
|
|
120 |
Residential 1-4 Family - Consumer |
|
|
20,963 |
|
|
308 |
Residential 1-4 Family - Revolving |
|
|
3,256 |
|
|
82 |
Auto |
|
|
788 |
|
|
15 |
Consumer |
|
|
187 |
|
|
5 |
Other Commercial |
|
|
584 |
|
|
22 |
Total impaired loans |
|
$ |
62,158 |
|
$ |
1,425 |
The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructuring or a foreclosure and repossession of the applicable collateral occurs. During the year ended December 31, 2019, 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 year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
All Restructurings |
|
|
2019 |
|
|
|
|
Recorded |
|
|
No. of |
|
Investment at |
|
|
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 |
|
$ |
376 |
Residential 1-4 Family - Commercial |
|
1 |
|
|
72 |
Residential 1-4 Family - Consumer |
|
7 |
|
|
1,688 |
Consumer |
|
3 |
|
|
24 |
Total loan term extended at a market rate |
|
12 |
|
$ |
2,160 |
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
Construction and Land Development |
|
3 |
|
$ |
193 |
Residential 1-4 Family - Consumer |
|
22 |
|
|
2,658 |
Consumer |
|
1 |
|
|
5 |
Total loan term extended at a below market rate |
|
26 |
|
$ |
2,856 |
|
|
|
|
|
|
Total |
|
38 |
|
$ |
5,016 |
|
|
|
|
|
|
Allowance for Loan and Lease Losses
The following table shows the ALLL activity by class for the year ended December 31, 2019. The table below includes the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
Allowance for loan losses |
|
|
Balance, |
|
Recoveries |
|
Loans |
|
Provision |
|
Balance, |
|
|
beginning of |
|
credited to |
|
charged |
|
charged to |
|
end of |
|
|
the year |
|
allowance |
|
off |
|
operations |
|
period |
Construction and Land Development |
|
$ |
6,803 |
|
$ |
665 |
|
$ |
(4,218) |
|
$ |
2,508 |
|
$ |
5,758 |
Commercial Real Estate - Owner Occupied |
|
|
4,023 |
|
|
456 |
|
|
(1,346) |
|
|
786 |
|
|
3,919 |
Commercial Real Estate - Non-Owner Occupied |
|
|
8,865 |
|
|
109 |
|
|
(270) |
|
|
839 |
|
|
9,543 |
Multifamily Real Estate |
|
|
649 |
|
|
85 |
|
|
— |
|
|
(102) |
|
|
632 |
Commercial & Industrial |
|
|
7,636 |
|
|
1,132 |
|
|
(3,096) |
|
|
2,932 |
|
|
8,604 |
Residential 1-4 Family - Commercial |
|
|
1,692 |
|
|
372 |
|
|
(472) |
|
|
(227) |
|
|
1,365 |
Residential 1-4 Family - Consumer |
|
|
1,492 |
|
|
466 |
|
|
(144) |
|
|
199 |
|
|
2,013 |
Residential 1-4 Family - Revolving |
|
|
1,297 |
|
|
692 |
|
|
(698) |
|
|
32 |
|
|
1,323 |
Auto |
|
|
1,443 |
|
|
549 |
|
|
(1,282) |
|
|
743 |
|
|
1,453 |
Consumer and all other(1) |
|
|
7,145 |
|
|
2,706 |
|
|
(16,582) |
|
|
14,415 |
|
|
7,684 |
Total |
|
$ |
41,045 |
|
$ |
7,232 |
|
$ |
(28,108) |
|
$ |
22,125 |
|
$ |
42,294 |
(1) |
Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
|