Quarterly report pursuant to Section 13 or 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

v3.21.2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
6 Months Ended
Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Loans Stated at Face Amount, Net of Unearned Income

The Company’s loans are stated at their face amount, net of deferred fees and costs, and consist of the following at June 30, 2021 and December 31, 2020 (dollars in thousands):

June 30, 2021

    

December 31, 2020

Construction and Land Development

$

838,722

$

925,798

Commercial Real Estate - Owner Occupied

 

2,069,658

 

2,128,909

Commercial Real Estate - Non-Owner Occupied

 

3,712,607

 

3,657,562

Multifamily Real Estate

 

860,081

 

814,745

Commercial & Industrial(1)

 

2,990,622

 

3,263,460

Residential 1-4 Family - Commercial

 

637,485

 

671,949

Residential 1-4 Family - Consumer

 

823,355

 

822,866

Residential 1-4 Family - Revolving

 

559,014

 

596,996

Auto

 

411,073

 

401,324

Consumer

 

195,036

 

247,730

Other Commercial(2)

 

600,276

 

489,975

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

13,697,929

14,021,314

Allowance for loan and lease losses

(118,261)

(160,540)

Total loans held for investment, net

$

13,579,668

$

13,860,774

(1) Commercial & industrial loans include approximately $842.0 million and $1.2 billion in loans from the PPP at June 30, 2021 and December 31, 2020, respectively.

(2) Other commercial loans include approximately $17.4 million and $11.3 million in loans from the PPP at June 30, 2021 and December 31, 2020, respectively.

(3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $73.7 million and $69.7 million as of June 30, 2021 and December 31, 2020, respectively.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at June 30, 2021 (dollars in thousands):

    

    

    

    

Greater than

    

    

30-59 Days

60-89 Days

90 Days and

Current

Past Due

Past Due

still Accruing

Nonaccrual

Total Loans

Construction and Land Development

$

834,743

$

798

$

310

$

186

$

2,685

$

838,722

Commercial Real Estate - Owner Occupied

 

2,056,955

 

1,450

 

2,008

 

2,276

 

6,969

 

2,069,658

Commercial Real Estate - Non-Owner Occupied

 

3,707,175

 

1,501

 

78

 

827

 

3,026

 

3,712,607

Multifamily Real Estate

 

859,812

 

156

 

 

 

113

 

860,081

Commercial & Industrial

 

2,984,945

 

948

 

1,733

 

1,088

 

1,908

 

2,990,622

Residential 1-4 Family - Commercial

 

631,251

 

710

 

565

 

759

 

4,200

 

637,485

Residential 1-4 Family - Consumer

 

805,385

 

764

 

992

 

2,725

 

13,489

 

823,355

Residential 1-4 Family - Revolving

 

553,130

 

919

 

678

 

561

 

3,726

 

559,014

Auto

 

409,228

 

1,333

 

165

 

168

 

179

 

411,073

Consumer

 

193,934

 

545

 

297

 

156

 

104

 

195,036

Other Commercial

599,901

375

600,276

Total loans held for investment

$

13,636,459

$

9,499

$

6,826

$

8,746

$

36,399

$

13,697,929

% of total loans

99.55

%

0.07

%

0.05

%

0.06

%

0.27

%

100.00

%

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

    

    

    

    

Greater than

    

    

 

30-59 Days

60-89 Days

90 Days and

 

Current

Past Due

Past Due

still Accruing

Nonaccrual

Total Loans

 

Construction and Land Development

$

920,276

$

1,903

$

547

$

$

3,072

$

925,798

Commercial Real Estate - Owner Occupied

 

2,114,804

 

1,870

 

1,380

 

3,727

 

7,128

 

2,128,909

Commercial Real Estate - Non-Owner Occupied

 

3,651,232

 

2,144

 

1,721

 

148

 

2,317

 

3,657,562

Multifamily Real Estate

 

814,095

 

617

 

 

 

33

 

814,745

Commercial & Industrial

 

3,257,201

 

1,848

 

1,190

 

1,114

 

2,107

 

3,263,460

Residential 1-4 Family - Commercial

 

657,351

 

2,227

 

818

 

1,560

 

9,993

 

671,949

Residential 1-4 Family - Consumer

 

792,852

 

10,182

 

1,533

 

5,699

 

12,600

 

822,866

Residential 1-4 Family - Revolving

 

587,522

 

2,975

 

1,044

 

826

 

4,629

 

596,996

Auto

 

398,206

 

2,076

 

376

 

166

 

500

 

401,324

Consumer

 

245,551

 

1,166

 

550

 

394

 

69

 

247,730

Other Commercial

489,959

16

489,975

Total loans held for investment

$

13,929,049

$

27,024

$

9,159

$

13,634

$

42,448

$

14,021,314

% of total loans

99.34

%

0.19

%

0.07

%

0.10

%

0.30

%

100.00

%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2021, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of June 30, 2021 (dollars in thousands):

Nonaccrual

January 1, 2021

June 30, 2021

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

$

3,072

$

2,685

$

1,985

$

186

Commercial Real Estate - Owner Occupied

7,128

6,969

1,994

2,276

Commercial Real Estate - Non-Owner Occupied

2,317

3,026

827

Multifamily Real Estate

33

113

Commercial & Industrial

2,107

1,908

1

1,088

Residential 1-4 Family - Commercial

9,993

4,200

1,736

759

Residential 1-4 Family - Consumer

12,600

13,489

1,069

2,725

Residential 1-4 Family - Revolving

4,629

3,726

60

561

Auto

500

179

168

Consumer

69

104

156

Total loans held for investment

$

42,448

$

36,399

$

6,845

$

8,746

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

Nonaccrual

January 1, 2020

December 31, 2020

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

$

4,060

$

3,072

$

1,985

$

Commercial Real Estate - Owner Occupied

13,889

7,128

1,994

3,727

Commercial Real Estate - Non-Owner Occupied

1,368

2,317

148

Multifamily Real Estate

33

Commercial & Industrial

3,037

2,107

1

1,114

Residential 1-4 Family - Commercial

6,492

9,993

6,388

1,560

Residential 1-4 Family - Consumer

13,117

12,600

1,069

5,699

Residential 1-4 Family - Revolving

2,490

4,629

60

826

Auto

565

500

166

Consumer

88

69

394

Other Commercial

98

Total loans held for investment

$

45,204

$

42,448

$

11,497

$

13,634

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

The following table provides a summary, by class, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of June 30, 2021 and December 31, 2020 (dollars in thousands):

June 30, 2021

December 31, 2020

    

No. of

    

Recorded

    

Outstanding

    

No. of

    

Recorded

    

Outstanding

Loans

Investment

Commitment

Loans

Investment

Commitment

Performing

 

  

 

  

 

  

 

  

 

  

 

  

Construction and Land Development

 

4

$

208

$

 

4

$

215

$

Commercial Real Estate - Owner Occupied

 

4

 

1,009

 

 

6

 

2,033

 

176

Commercial Real Estate - Non-Owner Occupied

 

1

 

1,089

 

 

1

 

1,089

 

Commercial & Industrial

 

2

 

434

 

 

4

 

727

 

Residential 1-4 Family - Commercial

 

 

 

 

3

 

245

 

Residential 1-4 Family - Consumer

 

80

 

9,641

 

 

77

 

8,943

 

Residential 1-4 Family - Revolving

 

3

 

271

 

3

 

3

 

277

 

Consumer

 

3

 

26

 

 

3

 

22

 

Other Commercial

1

375

1

410

Total performing

 

98

$

13,053

$

3

 

102

$

13,961

$

176

Nonperforming

 

  

 

  

 

  

 

  

 

  

 

  

Commercial Real Estate - Owner Occupied

 

2

$

832

$

 

1

$

20

$

Commercial Real Estate - Non-Owner Occupied

1

123

1

134

Commercial & Industrial

 

4

 

402

 

 

3

 

237

 

Residential 1-4 Family - Commercial

 

3

 

399

 

 

4

 

1,296

 

Residential 1-4 Family - Consumer

 

24

 

4,373

 

 

23

 

4,865

 

Residential 1-4 Family - Revolving

 

3

 

102

 

 

3

 

103

 

Total nonperforming

 

37

$

6,231

$

 

35

$

6,655

$

Total performing and nonperforming

 

135

$

19,284

$

3

 

137

$

20,616

$

176

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the three and six months ended June 30, 2021 (dollars in thousands):

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

    

    

Recorded

    

    

Recorded

No. of

Investment at

No. of

Investment at

Loans

Period End

Loans

Period End

Modified to interest only, at a market rate

 

  

 

  

 

  

 

  

Total interest only at market rate of interest

 

$

 

$

Term modification, at a market rate

 

  

 

  

 

  

 

  

Residential 1-4 Family - Consumer

 

$

 

2

$

104

Total loan term extended at a market rate

 

$

 

2

$

104

Term modification, below market rate

 

  

 

  

 

  

 

  

Residential 1-4 Family - Consumer

 

3

$

1,382

 

11

$

1,824

Consumer

 

 

 

1

 

15

Total loan term extended at a below market rate

 

3

$

1,382

 

12

$

1,839

Interest rate modification, below market rate

 

  

 

  

 

  

 

  

Residential 1-4 Family - Commercial

 

$

 

1

$

45

Total interest only at below market rate of interest

 

$

 

1

$

45

Total

 

3

$

1,382

 

15

$

1,988

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

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

    

    

Recorded

    

    

Recorded

No. of

Investment at

No. of

Investment at

Loans

Period End

Loans

Period End

Modified to interest only, at a market rate

 

  

 

  

 

  

 

  

Total interest only at market rate of interest

 

$

 

$

Term modification, at a market rate

 

  

 

  

 

  

 

  

Commercial & Industrial

 

4

$

353

 

4

$

353

Residential 1-4 Family - Consumer

 

3

 

326

 

3

 

326

Consumer

 

1

 

10

 

1

 

10

Total loan term extended at a market rate

 

8

$

689

 

8

$

689

Term modification, below market rate

 

  

 

  

 

  

 

  

Construction and Land Development

$

1

$

35

Residential 1-4 Family - Consumer

 

3

 

172

 

13

 

1,937

Residential 1-4 Family - Revolving

1

52

1

52

Total loan term extended at a below market rate

 

4

$

224

 

15

$

2,024

Interest rate modification, below market rate

 

  

 

  

 

  

 

  

Total interest only at below market rate of interest

 

$

 

$

Total

 

12

$

913

 

23

$

2,713

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

The following tables show the ALLL activity by loan segment for the three and six months ended June 30, 2021 and 2020 (dollars in thousands):

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

Commercial

Consumer

Total

Commercial

Consumer

Total

Balance at beginning of period

$

106,432

$

36,479

$

142,911

$

117,403

$

43,137

$

160,540

Loans charged-off

 

(891)

 

(1,054)

 

(1,945)

 

(2,865)

 

(2,721)

 

(5,586)

Recoveries credited to allowance

 

1,042

 

834

 

1,876

 

2,648

 

1,697

 

4,345

Provision charged to operations

 

(16,746)

 

(7,835)

 

(24,581)

 

(27,349)

 

(13,689)

 

(41,038)

Balance at end of period

$

89,837

$

28,424

$

118,261

$

89,837

$

28,424

$

118,261

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

Commercial

Consumer

Total

Commercial

Consumer

Total

Balance at beginning of period

$

77,843

$

63,200

$

141,043

$

30,941

$

11,353

$

42,294

Impact of ASC 326 adoption on non-PCD loans

 

 

 

 

4,432

 

40,666

 

45,098

Impact of ASC 326 adoption on PCD loans

 

 

 

 

1,752

 

634

 

2,386

Impact of adopting ASC 326

 

 

 

 

6,184

 

41,300

 

47,484

Loans charged-off

 

(1,590)

 

(3,087)

 

(4,677)

 

(4,558)

 

(7,270)

 

(11,828)

Recoveries credited to allowance

 

708

 

703

 

1,411

 

1,862

 

1,709

 

3,571

Provision charged to operations

 

34,993

 

(2,793)

 

32,200

 

77,525

 

10,931

 

88,456

Balance at end of period

$

111,954

$

58,023

$

169,977

$

111,954

$

58,023

$

169,977

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

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of June 30, 2021 (dollars in thousands):

June 30, 2021

Term Loans Amortized Cost Basis by Origination Year

2021

2020

2019

2018

2017

Prior

Revolving Loans

Total

Construction and Land Development

Pass

$

169,737

$

284,804

$

136,881

$

79,204

$

19,754

$

54,558

$

14,405

$

759,343

Watch

2,991

3,168

27,862

1,201

339

6,870

42,431

Special Mention

629

132

1,102

1,863

Substandard

524

29,101

7

5,453

35,085

Total Construction and Land Development

$

172,728

$

287,972

$

165,896

$

109,638

$

20,100

$

67,983

$

14,405

$

838,722

Commercial Real Estate - Owner Occupied

Pass

$

107,413

$

282,904

$

318,170

$

275,683

$

214,996

$

634,229

$

24,428

$

1,857,823

Watch

113

13,848

16,318

16,499

14,099

47,956

675

109,508

Special Mention

960

29,741

1,493

1,121

38,305

2,157

73,777

Substandard

4,906

1,711

1,974

19,159

800

28,550

Total Commercial Real Estate - Owner Occupied

$

107,526

$

297,712

$

369,135

$

295,386

$

232,190

$

739,649

$

28,060

$

2,069,658

Commercial Real Estate - Non-Owner Occupied

Pass

$

225,833

$

436,594

$

457,142

$

373,263

$

390,212

$

1,096,953

$

53,293

$

3,033,290

Watch

12,557

8,991

104,690

65,828

39,917

205,843

384

438,210

Special Mention

693

70,587

42,248

18,436

42,236

218

174,418

Substandard

11,245

13,170

9,318

32,956

66,689

Total Commercial Real Estate - Non-Owner Occupied

$

238,390

$

457,523

$

632,419

$

494,509

$

457,883

$

1,377,988

$

53,895

$

3,712,607

Commercial & Industrial

Pass

$

735,552

$

814,028

$

302,050

$

161,183

$

49,690

$

187,496

$

610,304

$

2,860,303

Watch

193

12,537

24,828

19,606

5,032

5,377

24,102

91,675

Special Mention

637

1,205

5,865

3,388

975

1,573

11,454

25,097

Substandard

56

4,602

1,216

274

2,223

5,176

13,547

Total Commercial & Industrial

$

736,382

$

827,826

$

337,345

$

185,393

$

55,971

$

196,669

$

651,036

$

2,990,622

Multifamily Real Estate

Pass

$

36,278

$

142,330

$

131,106

$

145,985

$

101,098

$

259,262

$

7,236

$

823,295

Watch

4,367

465

24,438

42

29,312

Special Mention

2,273

634

4,361

93

7,361

Substandard

113

113

Total Multifamily Real Estate

$

36,278

$

144,603

$

136,107

$

150,811

$

101,098

$

283,906

$

7,278

$

860,081

Residential 1-4 Family - Commercial

Pass

$

56,120

$

100,940

$

75,069

$

54,133

$

66,745

$

236,341

$

1,233

$

590,581

Watch

2,153

3,813

8,760

3,667

9,597

195

28,185

Special Mention

163

450

426

6,124

7,163

Substandard

3,484

773

1,390

5,421

488

11,556

Total Residential 1-4 Family - Commercial

$

56,283

$

103,093

$

82,366

$

64,116

$

72,228

$

257,483

$

1,916

$

637,485

Other Commercial

Pass

$

147,863

$

206,752

$

108,972

$

6,247

$

26,650

$

53,072

$

16,252

$

565,808

Watch

597

1,273

5,071

800

7,741

Special Mention

4

204

26,144

26,352

Substandard

375

375

Total Other Commercial

$

147,863

$

206,752

$

108,972

$

6,844

$

27,927

$

58,722

$

43,196

$

600,276

Total Commercial

Pass

$

1,478,796

$

2,268,352

$

1,529,390

$

1,095,698

$

869,145

$

2,521,911

$

727,151

$

10,490,443

Watch

15,854

40,697

181,878

112,956

64,327

305,152

26,198

747,062

Special Mention

800

5,131

107,456

52,072

20,962

89,637

39,973

316,031

Substandard

11,301

13,516

45,971

12,963

65,700

6,464

155,915

Total Commercial

$

1,495,450

$

2,325,481

$

1,832,240

$

1,306,697

$

967,397

$

2,982,400

$

799,786

$

11,709,451

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

December 31, 2020

Term Loans Amortized Cost Basis by Origination Year

2020

2019

2018

2017

2016

Prior

Revolving Loans

Total

Construction and Land Development

Pass

$

316,585

$

277,142

$

116,800

$

24,770

$

42,970

$

54,023

$

23,324

$

855,614

Watch