Atlantic Union Bankshares Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES

LOANS AND ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2021

Loans and Allowance for Loan Losses [Abstract]

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

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

—

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

176,992

Other Commercial

605,214

—

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

113

—

Commercial & Industrial

2,107

1,647

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

—

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

Substandard

3,541

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

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

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

2,248

624

4,517

—

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

—

436

391

4,126

—

5,049

Substandard

—

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

—

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.