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Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES As noted in Note A, Accounting Polices and Basis of Presentation, BancShares determined SBA-PPP loans have zero expected credit losses and as such these are excluded from ACL disclosures included in the following tables. Upon adoption of ASC 326, BancShares recorded a net decrease of $37.9 million in the ACL which included a decrease of $56.9 million in the ACL on non-PCD loans, offset by an increase of $19.0 million in the ACL on PCD loans. The largest changes as a result of adoption were decreases in the ACL on commercial loan segments as these portfolios have exhibited strong historical credit performance and have relatively short average lives. The reduction in ACL on these segments was partially offset by increases in ACL on our consumer loan segments primarily due to their longer average lives. The increase in the ACL on PCD loans was primarily the result of reallocating credit discount from loan balances into ACL. The ACL is calculated using a variety of factors, including, but not limited to, charge-off and recovery activity, loan growth, changes in macroeconomic factors, collateral type, estimated loan life and changes in credit quality. For the period ended December 31, 2020 the primary reason for the ACL change since the adoption of ASC 326, was a $36.1 million reserve build due to the potential economic impact of COVID-19 and its estimated impact on credit losses. Forecasted economic conditions are developed using third party macroeconomic scenarios adjusted based on management’s expectations over a forecast period of two years. Assumptions revert to long term historic averages over a one year period. Significant macroeconomic factors used in estimating the expected losses include unemployment, gross domestic product, home price index and commercial real estate index. Our model results consider baseline, adverse and upside scenarios. To calculate the ACL, we utilized the baseline scenario, which considers government stimulus and incorporates significant improvements to the most significant forecast assumptions when compared on the COVID-19-impacted levels from early in 2020. This result was calibrated using management’s expectation of borrower performance based upon COVID-19 residual risk by industry. These loss estimates were also influenced by BancShares strong credit quality, low net charge-offs and recent credit trends, which remained stable through the latter half of year ended December 31, 2020, despite potential impacts from COVID-19. Activity in the allowance for credit losses by class of loans is summarized as follows:
| Year ended December 31, 2020
(Dollars in thousands) | Construction and land development - commercial |  | Owner occupied commercial mortgage |  | Non-owner occupied commercial mortgage |  | Commercial and industrial and leases |  | Residential mortgage |  | Revolving mortgage |  | Construction and land development - consumer |  | Consumer auto |  | Consumer other |  | PCD |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 | $ | 33,213 |  |  | $ | 36,444 |  |  | $ | 11,102 |  |  | $ | 61,610 |  |  | $ | 18,232 |  |  | $ | 19,702 |  |  | $ | 2,709 |  |  | $ | 4,292 |  |  | $ | 30,301 |  |  | $ | 7,536 |  |  | $ | 225,141 |
Adoption of ASC 326 | (31,061) |  |  | (19,316) |  |  | 460 |  |  | (37,637) |  |  | 17,118 |  |  | 3,665 |  |  | (1,291) |  |  | 1,100 |  |  | 10,037 |  |  | 19,001 |  |  | (37,924) |
Balance at January 1, 2020 | 2,152 |  |  | 17,128 |  |  | 11,562 |  |  | 23,973 |  |  | 35,350 |  |  | 23,367 |  |  | 1,418 |  |  | 5,392 |  |  | 40,338 |  |  | 26,537 |  |  | 187,217 |
Provision (credits) | 4,301 |  |  | 6,729 |  |  | 12,917 |  |  | 13,816 |  |  | 9,684 |  |  | 1,134 |  |  | 266 |  |  | 6,297 |  |  | 10,410 |  |  | (7,202) |  |  | 58,352 |
Initial allowance on PCD loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,193 |  |  | 1,193 |
Charge-offs | (138) |  |  | (593) |  |  | (1,951) |  |  | (14,904) |  |  | (1,653) |  |  | (1,662) |  |  | (70) |  |  | (3,646) |  |  | (17,188) |  |  | (3,300) |  |  | (45,105) |
Recoveries | 431 |  |  | 401 |  |  | 124 |  |  | 4,894 |  |  | 717 |  |  | 1,918 |  |  | 117 |  |  | 1,417 |  |  | 5,879 |  |  | 6,759 |  |  | 22,657 |
Balance at December 31, 2020 | $ | 6,746 |  |  | $ | 23,665 |  |  | $ | 22,652 |  |  | $ | 27,779 |  |  | $ | 44,098 |  |  | $ | 24,757 |  |  | $ | 1,731 |  |  | $ | 9,460 |  |  | $ | 39,439 |  |  | $ | 23,987 |  |  | $ | 224,314 |
| Years ended December 31, 2019 and 2018
(Dollars in thousands) | Construction and land development - commercial |  | Commercial mortgage |  | Other commercial real estate |  | Commercial and industrial and leases |  | Other |  | Residential mortgage |  | Revolving mortgage |  | Construction and land development - non- commercial |  | Consumer |  | PCI |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2018 | $ | 24,470 |  |  | $ | 45,005 |  |  | $ | 4,571 |  |  | $ | 59,824 |  |  | $ | 4,689 |  |  | $ | 15,706 |  |  | $ | 22,436 |  |  | $ | 3,962 |  |  | $ | 31,204 |  |  | $ | 10,026 |  |  | $ | 221,893 |
Provision (credits) | 10,533 |  |  | (1,490) |  |  | (2,171) |  |  | 2,511 |  |  | (2,827) |  |  | 897 |  |  | 1,112 |  |  | (1,520) |  |  | 22,187 |  |  | (765) |  |  | 28,467 |
Charge-offs | (44) |  |  | (1,140) |  |  | (69) |  |  | (10,211) |  |  | (130) |  |  | (1,689) |  |  | (3,235) |  |  | (219) |  |  | (22,817) |  |  | (117) |  |  | (39,671) |
Recoveries | 311 |  |  | 1,076 |  |  | 150 |  |  | 3,496 |  |  | 489 |  |  | 558 |  |  | 1,549 |  |  | 127 |  |  | 5,267 |  |  | — |  |  | 13,023 |
Balance at December 31, 2018 | 35,270 |  |  | 43,451 |  |  | 2,481 |  |  | 55,620 |  |  | 2,221 |  |  | 15,472 |  |  | 21,862 |  |  | 2,350 |  |  | 35,841 |  |  | 9,144 |  |  | 223,712 |
Provision (credits) | (2,171) |  |  | 2,384 |  |  | (285) |  |  | 14,212 |  |  | (754) |  |  | 3,481 |  |  | (788) |  |  | 359 |  |  | 16,611 |  |  | (1,608) |  |  | 31,441 |
Charge-offs | (196) |  |  | (1,096) |  |  | — |  |  | (13,352) |  |  | (100) |  |  | (1,137) |  |  | (2,584) |  |  | — |  |  | (24,562) |  |  | — |  |  | (43,027) |
Recoveries | 310 |  |  | 596 |  |  | 15 |  |  | 2,894 |  |  | 869 |  |  | 416 |  |  | 1,212 |  |  | — |  |  | 6,703 |  |  | — |  |  | 13,015 |
Balance at December 31, 2019 | $ | 33,213 |  |  | $ | 45,335 |  |  | $ | 2,211 |  |  | $ | 59,374 |  |  | $ | 2,236 |  |  | $ | 18,232 |  |  | $ | 19,702 |  |  | $ | 2,709 |  |  | $ | 34,593 |  |  | $ | 7,536 |  |  | $ | 225,141 |
BancShares records an allowance for credit losses on unfunded commitments within other liabilities. Activity in the allowance for credit losses for unfunded commitments is summarized as follows:
(Dollars in thousands) | Year ended December 31, 2020
Allowance for credit losses: |
Balance at December 31, 2019 | $ | 1,055 |
Adoption of ASC 326 | 8,885 |
Balance at January 1, 2020 | $ | 9,940 |
Provision | 2,874 |
Balance at December 31, 2020 | 12,814 |
BancShares individually reviews loans greater than $500 thousand that are determined to be collateral-dependent. These collateral-dependent loans are evaluated based on the fair value of the underlying collateral as repayment of the loan is expected to be made through the operation or sale of the collateral. Commercial and industrial loans and leases are collateralized by business assets, while the remaining loan classes are collateralized by real property. The following table presents information on collateral-dependent loans by class and includes the amortized cost of collateral-dependent loans and leases, the net realizable value of the collateral, the extent to which collateral secures collateral-dependent loans and the associated ACL as of December 31, 2020 were as follows:
(Dollars in thousands) | Collateral-Dependant Loans |  | Net Realizable Value of Collateral |  | Collateral Coverage |  | Allowance for Credit Losses
Commercial loans: |  |  |  |  |  |  |
Construction and land development | $ | 1,424 |  |  | $ | 1,795 |  |  | 126.1 | % |  | $ | — |
Owner occupied commercial mortgage | 9,792 |  |  | 14,253 |  |  | 145.6 |  |  | — |
Non-owner occupied commercial mortgage | 5,556 |  |  | 7,577 |  |  | 136.4 |  |  | — |
Total commercial loans | 16,772 |  |  | 23,625 |  |  | 140.9 |  |  | — |
Consumer: |  |  |  |  |  |  |
Residential mortgage | 23,011 |  |  | 29,775 |  |  | 129.4 |  |  | 131 |
Total non-PCD loans | 39,783 |  |  | 53,400 |  |  | 134.2 |  |  | 131 |
PCD | 19,042 |  |  | 27,872 |  |  | 146.4 |  |  | — |
Total collateral-dependent loans | $ | 58,825 |  |  | $ | 81,272 |  |  | 138.2 | % |  | $ | 131 |
Collateral-dependent nonaccrual loans with no recorded allowance totaled $57.5 million as of December 31, 2020. All other nonaccrual loans have a recorded allowance. Allowance for Loan and Lease Losses Prior to adoption of ASC 326, management calculated estimated loan losses through the allowance for loan and lease losses (“ALLL”). The ALLL represented management’s best estimate of inherent credit losses within the loan and lease portfolio at the balance sheet date. Management determined the ALLL based on an ongoing evaluation of the loan portfolio. Estimates for loan losses were determined by analyzing quantitative and qualitative components, such as: economic conditions, historical loan losses, historical loan migration to charge-off experience, current trends in delinquencies and charge-offs, expected cash flows on PCI loans, current assessment of impaired loans, and changes in the size, composition and/or risk within the loan portfolio. Adjustments to the ALLL were recorded with a corresponding entry to provision for loan and lease losses. Loan balances considered uncollectible were charged-off against the ALLL. Recoveries of amounts previously charged-off were generally credited to the ALLL. A primary component of determining the allowance on non-PCI loans collectively evaluated was the actual loss history of the various loan classes. Loan loss factors were based on historical experience and, when necessary, were adjusted for significant factors, that in management’s judgment, affect the collectability of principal and interest at the balance sheet date. Loan loss factors were monitored quarterly and, when necessary, adjusted based on changes in the level of historical net charge-offs and updates by management, such as the number of periods included in the calculation of loss factors, loss severity, loss emergence period and portfolio attrition. For commercial non-PCI loans, management incorporated historical net loss data to develop the applicable loan loss factors. General reserves for collective impairment were based on incurred loss estimates for the loan class based on average loss rates by credit quality indicators, which were estimated using historical loss experience and credit risk rating migrations. Credit quality indicators include borrower classification codes and facility risk ratings. Incurred loss estimates were adjusted through a qualitative assessment to reflect current economic conditions and portfolio trends including credit quality, concentrations, aging of the portfolio and significant policy and underwriting changes. For noncommercial non-PCI loans, management incorporated specific loan class and delinquency status trends into the loan loss factors. General reserve estimates of incurred losses were based on historical loss experience and the migration of loans through the various delinquency pools applied to the current risk mix. Non-PCI loans were considered to be impaired when, based on current information and events, it was probable that a borrower would be unable to pay all amounts due according to the contractual terms of the loan agreement. Generally, management considered the following loans to be impaired: all TDR loans and all loan relationships which were on nonaccrual or 90+ days past due and greater than $500,000. Non-PCI impaired loans greater than $500,000 were evaluated individually for impairment while others were evaluated collectively. The impairment assessment and determination of the related specific reserve for each impaired loan was based on the loan’s characteristics. Impairment measurement for loans dependent on borrower cash flow for repayment was based on the present value of expected cash flows discounted at the interest rate implicit in the original loan agreement. Impairment measurement for most real estate loans, particularly when a loan was considered to be a probable foreclosure, was based on the fair value of the underlying collateral. Collateral was appraised and market value (appropriately adjusted for an assessment of the sales and marketing costs) was used to calculate a fair value estimate. A specific valuation allowance was established or partial charge-off was recorded for the difference between the excess recorded investment in the loan and the loan’s estimated fair value less costs to sell. The ALLL for PCI loans was estimated based on the expected cash flows over the life of the loan. BancShares estimated and updated cash flows expected to be collected on individual loans or pools of loans sharing common risk characteristics. BancShares compared the carrying value of all PCI loans to the present value at each balance sheet date. If the present value was less than the carrying value, the shortfall reduced the remaining credit discount and if it was in excess of the remaining credit discount, an ALLL was recorded through the recognition of provision expense. The ALLL for PCI loans with subsequent increases in expected cash flows to be collected was reduced and any remaining excess was recorded as an adjustment to the accretable yield over the loan’s or pool’s remaining life. The following tables present the allowance and recorded investment in loans and leases by class of loans, as well as the associated impairment method at December 31, 2019.
| December 31, 2019
(Dollars in thousands) | Construction and land development - commercial |  | Commercial mortgage |  | Other commercial real estate |  | Commercial and industrial and leases |  | Other |  | Residential mortgage |  | Revolving mortgage |  | Construction and land development - non-commercial |  | Consumer |  | Total
Non-PCI Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ALLL for loans and leases individually evaluated for impairment | $ | 463 |  |  | $ | 3,650 |  |  | $ | 39 |  |  | $ | 1,379 |  |  | $ | 103 |  |  | $ | 3,278 |  |  | $ | 2,722 |  |  | $ | 174 |  |  | $ | 1,107 |  |  | $ | 12,915 |
ALLL for loans and leases collectively evaluated for impairment | 32,750 |  |  | 41,685 |  |  | 2,172 |  |  | 57,995 |  |  | 2,133 |  |  | 14,954 |  |  | 16,980 |  |  | 2,535 |  |  | 33,486 |  |  | 204,690 |
Total allowance for loan and lease losses | $ | 33,213 |  |  | $ | 45,335 |  |  | $ | 2,211 |  |  | $ | 59,374 |  |  | $ | 2,236 |  |  | $ | 18,232 |  |  | $ | 19,702 |  |  | $ | 2,709 |  |  | $ | 34,593 |  |  | $ | 217,605 |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases individually evaluated for impairment | $ | 4,655 |  |  | $ | 70,149 |  |  | $ | 1,268 |  |  | $ | 12,182 |  |  | $ | 639 |  |  | $ | 60,442 |  |  | $ | 28,869 |  |  | $ | 3,882 |  |  | $ | 3,513 |  |  | $ | 185,599 |
Loans and leases collectively evaluated for impairment | 1,008,799 |  |  | 12,212,486 |  |  | 540,760 |  |  | 4,391,610 |  |  | 309,454 |  |  | 5,233,475 |  |  | 2,310,203 |  |  | 353,503 |  |  | 1,776,891 |  |  | 28,137,181 |
Total loan and leases | $ | 1,013,454 |  |  | $ | 12,282,635 |  |  | $ | 542,028 |  |  | $ | 4,403,792 |  |  | $ | 310,093 |  |  | $ | 5,293,917 |  |  | $ | 2,339,072 |  |  | $ | 357,385 |  |  | $ | 1,780,404 |  |  | $ | 28,322,780 |
The following table presents the PCI allowance and recorded investment in loans at December 31, 2019.
(Dollars in thousands) |  |  | December 31, 2019
Allowance for loan losses: |  |  |
ALLL for loans acquired with deteriorated credit quality |  |  | $ | 7,536 |
Loans acquired with deteriorated credit quality |  |  | 558,716 |
At December 31, 2019, $139.4 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition. The corresponding valuation reserve was $7.5 million. The following tables present the recorded investment and related allowance in non-PCI impaired loans and leases by class of loans, as well as the unpaid principle balance.
| December 31, 2019
(Dollars in thousands) | With a recorded allowance |  | With no recorded allowance |  | Total |  | Unpaid principal balance |  | Related allowance recorded
Non-PCI impaired loans and leases |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |
Construction and land development | $ | 1,851 |  |  | $ | 2,804 |  |  | $ | 4,655 |  |  | $ | 5,109 |  |  | $ | 463 |
Commercial mortgage | 42,394 |  |  | 27,755 |  |  | 70,149 |  |  | 74,804 |  |  | 3,650 |
Other commercial real estate | 318 |  |  | 950 |  |  | 1,268 |  |  | 1,360 |  |  | 39 |
Commercial and industrial and leases | 7,547 |  |  | 4,635 |  |  | 12,182 |  |  | 13,993 |  |  | 1,379 |
Other | 406 |  |  | 233 |  |  | 639 |  |  | 661 |  |  | 103 |
Total commercial loans | 52,516 |  |  | 36,377 |  |  | 88,893 |  |  | 95,927 |  |  | 5,634 |
Noncommercial: |  |  |  |  |  |  |  |  |
Residential mortgage | 48,796 |  |  | 11,646 |  |  | 60,442 |  |  | 64,741 |  |  | 3,278 |
Revolving mortgage | 26,104 |  |  | 2,765 |  |  | 28,869 |  |  | 31,960 |  |  | 2,722 |
Construction and land development | 2,470 |  |  | 1,412 |  |  | 3,882 |  |  | 4,150 |  |  | 174 |
Consumer | 3,472 |  |  | 41 |  |  | 3,513 |  |  | 3,821 |  |  | 1,107 |
Total noncommercial loans | 80,842 |  |  | 15,864 |  |  | 96,706 |  |  | 104,672 |  |  | 7,281 |
Total non-PCI impaired loans and leases | $ | 133,358 |  |  | $ | 52,241 |  |  | $ | 185,599 |  |  | $ | 200,599 |  |  | $ | 12,915 |
Non-PCI impaired loans less than $500,000 that were collectively evaluated was $41.0 million at December 31, 2019. The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the years ended December 31, 2019 and 2018:
|  |  | 2019 |  | 2018
(Dollars in thousands) |  |  |  |  | Average Balance |  | Interest Income Recognized |  | Average Balance |  | Interest Income Recognized
Non-PCI impaired loans and leases: |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  |  |  |  | $ | 3,915 |  |  | $ | 53 |  |  | $ | 1,734 |  |  | $ | 84 |
Commercial mortgage |  |  |  |  | 64,363 |  |  | 2,188 |  |  | 65,943 |  |  | 2,569 |
Other commercial real estate |  |  |  |  | 919 |  |  | 27 |  |  | 1,225 |  |  | 43 |
Commercial and industrial and leases |  |  |  |  | 11,884 |  |  | 482 |  |  | 9,560 |  |  | 364 |
Other |  |  |  |  | 396 |  |  | 11 |  |  | 135 |  |  | 3 |
Total commercial |  |  |  |  | 81,477 |  |  | 2,761 |  |  | 78,597 |  |  | 3,063 |
Noncommercial: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  | 52,045 |  |  | 1,386 |  |  | 41,368 |  |  | 1,237 |
Revolving mortgage |  |  |  |  | 29,516 |  |  | 1,009 |  |  | 26,759 |  |  | 900 |
Construction and land development |  |  |  |  | 3,589 |  |  | 116 |  |  | 3,677 |  |  | 172 |
Consumer |  |  |  |  | 3,311 |  |  | 138 |  |  | 2,722 |  |  | 116 |
Total noncommercial |  |  |  |  | 88,461 |  |  | 2,649 |  |  | 74,526 |  |  | 2,425 |
Total non-PCI impaired loans and leases |  |  |  |  | $ | 169,938 |  |  | $ | 5,410 |  |  | $ | 153,123 |  |  | $ | 5,488 |
Troubled Debt Restructurings BancShares accounts for certain loan modifications or restructurings as TDRs. In general, the modification or restructuring of a loan is considered a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that creditors would not otherwise consider. Concessions may relate to the contractual interest rate, maturity date, payment structure or other actions. Within our allowance for credit loss models, TDRs are not individually evaluated unless determined to be collateral-dependent and are included in the definition of default which provides for a 100% probability of default applied within the models. As a result, subsequent changes in default status do not impact the calculation of the allowance for credit losses on TDR loans. The Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus was published by banking regulators in April 2020 to clarify expectations around loan modifications and the determination of TDRs for borrowers experiencing COVID-19-related financial difficulty. BancShares applied this regulatory guidance during its TDR identification process for short-term loan forbearance agreements as a result of COVID-19 and in most cases is not recording these as TDRs. The following tables provides a summary of total TDRs by accrual status. Total TDRs at December 31, 2020 were $208.2 million. Total TDRs at December 31, 2019, were $171.2 million, of which $154.0 million were non-PCI and $17.2 million were PCI. Total TDRs at December 31, 2018, were $156.1 million, of which $137.9 million were non-PCI and $18.2 million were PCI.
| December 31, 2020 |  |  |  |
(Dollars in thousands) | Accruing |  | Nonaccruing |  | Total |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development | $ | 578 |  |  | $ | 54 |  |  | $ | 632 |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied commercial mortgage | 37,574 |  |  | 10,889 |  |  | 48,463 |  |  |  |  |  |  |  |  |  |  |  |  |
Non-owner occupied commercial mortgage | 18,336 |  |  | 1,649 |  |  | 19,985 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial and leases | 29,131 |  |  | 3,528 |  |  | 32,659 |  |  |  |  |  |  |  |  |  |  |  |  |
Total commercial loans | 85,619 |  |  | 16,120 |  |  | 101,739 |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 29,458 |  |  | 19,380 |  |  | 48,838 |  |  |  |  |  |  |  |  |  |  |  |  |
Revolving mortgage | 20,124 |  |  | 7,128 |  |  | 27,252 |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development | 1,573 |  |  | 9 |  |  | 1,582 |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer auto | 2,018 |  |  | 696 |  |  | 2,714 |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer other | 955 |  |  | 137 |  |  | 1,092 |  |  |  |  |  |  |  |  |  |  |  |  |
Total consumer loans | 54,128 |  |  | 27,350 |  |  | 81,478 |  |  |  |  |  |  |  |  |  |  |  |  |
PCD loans | 17,617 |  |  | 7,346 |  |  | 24,963 |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans | $ | 157,364 |  |  | $ | 50,816 |  |  | $ | 208,180 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | December 31, 2019 |  | December 31, 2018
(Dollars in thousands) |  |  |  |  |  |  | Accruing |  | Nonaccruing |  | Total |  | Accruing |  | Nonaccruing |  | Total
Commercial loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  |  |  |  |  |  | $ | 487 |  |  | $ | 2,279 |  |  | $ | 2,766 |  |  | $ | 1,946 |  |  | $ | 352 |  |  | $ | 2,298 |
Commercial mortgage |  |  |  |  |  |  | 50,819 |  |  | 11,116 |  |  | 61,935 |  |  | 53,270 |  |  | 7,795 |  |  | 61,065 |
Other commercial real estate |  |  |  |  |  |  | 571 |  |  | — |  |  | 571 |  |  | 851 |  |  | 9 |  |  | 860 |
Commercial and industrial and leases |  |  |  |  |  |  | 9,430 |  |  | 2,409 |  |  | 11,839 |  |  | 7,986 |  |  | 2,060 |  |  | 10,046 |
Other |  |  |  |  |  |  | 320 |  |  | 105 |  |  | 425 |  |  | 118 |  |  | 173 |  |  | 291 |
Total commercial loans |  |  |  |  |  |  | 61,627 |  |  | 15,909 |  |  | 77,536 |  |  | 64,171 |  |  | 10,389 |  |  | 74,560 |
Noncommercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  | 41,813 |  |  | 16,048 |  |  | 57,861 |  |  | 37,903 |  |  | 9,621 |  |  | 47,524 |
Revolving mortgage |  |  |  |  |  |  | 21,032 |  |  | 7,367 |  |  | 28,399 |  |  | 20,492 |  |  | 8,196 |  |  | 28,688 |
Construction and land development |  |  |  |  |  |  | 1,452 |  |  | 2,430 |  |  | 3,882 |  |  | 2,227 |  |  | 110 |  |  | 2,337 |
Consumer |  |  |  |  |  |  | 2,826 |  |  | 688 |  |  | 3,514 |  |  | 2,300 |  |  | 721 |  |  | 3,021 |
Total noncommercial loans |  |  |  |  |  |  | 67,123 |  |  | 26,533 |  |  | 93,656 |  |  | 62,922 |  |  | 18,648 |  |  | 81,570 |
Total loans |  |  |  |  |  |  | $ | 128,750 |  |  | $ | 42,442 |  |  | $ | 171,192 |  |  | $ | 127,093 |  |  | $ | 29,037 |  |  | $ | 156,130 |
The following tables provide the types of modifications designated TDRs made during the years ended December 31, 2020, 2019 and 2018, as well as a summary of loans that were modified as a TDR during the years ended December 31, 2020, 2019 and 2018 that subsequently defaulted during the years ended December 31, 2020, 2019 and 2018. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due, foreclosure or charge-off, whichever occurs first.
| 2020 |  | 2019 |  | 2018
| All restructurings |  | Restructurings with payment default |  | All restructurings |  | Restructurings with payment default |  | All restructurings |  | Restructurings with payment default
| Number of loans | Amortized cost at period end |  | Number of loans | Amortized cost at period end |  | Number of loans | Amortized cost at period end |  | Number of loans | Amortized cost at period end |  | Number of loans | Amortized cost at period end |  | Number of loans | Amortized cost at period end
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest only period provided |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans | 31 | $ | 28,145 |  |  | 4 | $ | 4,498 |  |  | 11 | $ | 1,595 |  |  | 1 | $ | 238 |  |  | 3 | $ | 1,003 |  |  | — | $ | — |
Consumer loans | 6 | 4,169 |  |  | 5 | 2,569 |  |  | 7 | 4,018 |  |  | 2 | 2,717 |  |  | — | — |  |  | — | — |
Total interest only | 37 | 32,314 |  |  | 9 | 7,067 |  |  | 18 | 5,613 |  |  | 3 | 2,955 |  |  | 3 | 1,003 |  |  | — | — |
Loan term extension |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans | 26 | 5,444 |  |  | 5 | 1,471 |  |  | 16 | 3,904 |  |  | 5 | 533 |  |  | 21 | 3,933 |  |  | 4 | 675 |
Consumer loans | 66 | 5,689 |  |  | 43 | 3,241 |  |  | 2 | 342 |  |  | 1 | 306 |  |  | 21 | 1,554 |  |  | 4 | 190 |
Total loan term extension | 92 | 11,133 |  |  | 48 | 4,712 |  |  | 18 | 4,246 |  |  | 6 | 839 |  |  | 42 | 5,487 |  |  | 8 | 865 |
Below market interest rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans | 98 | 33,870 |  |  | 26 | 1,912 |  |  | 90 | 13,932 |  |  | 24 | 2,634 |  |  | 85 | 12,859 |  |  | 24 | 2,998 |
Consumer loans | 156 | 6,074 |  |  | 60 | 3,897 |  |  | 176 | 12,458 |  |  | 66 | 4,014 |  |  | 184 | 15,545 |  |  | 68 | 5,461 |
Total below market interest rate | 254 | 39,944 |  |  | 86 | 5,809 |  |  | 266 | 26,390 |  |  | 90 | 6,648 |  |  | 269 | 28,404 |  |  | 92 | 8,459 |
Discharged from bankruptcy |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans | 30 | 1,168 |  |  | 17 | 286 |  |  | 25 | 5,571 |  |  | 20 | 5,028 |  |  | 26 | 2,043 |  |  | 8 | 825 |
Consumer loans | 186 | 8,129 |  |  | 66 | 2,928 |  |  | 178 | 10,349 |  |  | 71 | 4,239 |  |  | 151 | 6,617 |  |  | 56 | 3,169 |
Total discharged from bankruptcy | 216 | 9,297 |  |  | 83 | 3,214 |  |  | 203 | 15,920 |  |  | 91 | 9,267 |  |  | 177 | 8,660 |  |  | 64 | 3,994 |
Total restructurings | 599 | $ | 92,688 |  |  | 226 | $ | 20,802 |  |  | 505 | $ | 52,169 |  |  | 190 | $ | 19,709 |  |  | 491 | $ | 43,554 |  |  | 164 | $ | 13,318 |

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