XML 37 R26.htm IDEA: XBRL DOCUMENT
v3.21.1

Allowance for Credit Losses (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2021
Receivables [Abstract] |
Allowance for Credit Losses | Activity in the ACL by portfolio segment is summarized as follows:
|  |  |  |  |  |  |  |  | Three months ended March 31, 2021
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at January 1 |  |  |  |  |  |  |  |  | $ | 80,842 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,485 |  |  | $ | 23,987 |  |  | $ | 224,314 |
Provision (credit) |  |  |  |  |  |  |  |  | (3,922) |  |  |  |  |  |  |  |  |  |  |  |  | (5,504) |  |  | (1,548) |  |  | (10,974) |
Charge-offs |  |  |  |  |  |  |  |  | (3,331) |  |  |  |  |  |  |  |  |  |  |  |  | (4,469) |  |  | (763) |  |  | (8,563) |
Recoveries |  |  |  |  |  |  |  |  | 1,275 |  |  |  |  |  |  |  |  |  |  |  |  | 3,340 |  |  | 1,259 |  |  | 5,874 |
Balance at March 31 |  |  |  |  |  |  |  |  | $ | 74,864 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 112,852 |  |  | $ | 22,935 |  |  | $ | 210,651 |
|  |  |  |  |  |  |  |  | Three months ended March 31, 2020
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at December 31 |  |  |  |  |  |  |  |  | $ | 142,369 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 75,236 |  |  | $ | 7,536 |  |  | $ | 225,141 |
Adoption of ASC 326 |  |  |  |  |  |  |  |  | (87,554) |  |  |  |  |  |  |  |  |  |  |  |  | 30,629 |  |  | 19,001 |  |  | (37,924) |
Balance at January 1 |  |  |  |  |  |  |  |  | 54,815 |  |  |  |  |  |  |  |  |  |  |  |  | 105,865 |  |  | 26,537 |  |  | 187,217 |
Provision (credit) |  |  |  |  |  |  |  |  | 21,537 |  |  |  |  |  |  |  |  |  |  |  |  | 9,406 |  |  | (2,588) |  |  | 28,355 |
Initial allowance on PCD loans |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | 1,193 |  |  | 1,193 |
Charge-offs |  |  |  |  |  |  |  |  | (5,369) |  |  |  |  |  |  |  |  |  |  |  |  | (7,769) |  |  | (1,123) |  |  | (14,261) |
Recoveries |  |  |  |  |  |  |  |  | 1,427 |  |  |  |  |  |  |  |  |  |  |  |  | 2,431 |  |  | 2,897 |  |  | 6,755 |
Balance at March 31 |  |  |  |  |  |  |  |  | $ | 72,410 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 109,933 |  |  | $ | 26,916 |  |  | $ | 209,259 |
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:
|  |  | Three months ended March 31
(Dollars in thousands) |  |  |  |  | 2021 |  | 2020
Allowance for credit losses: |  |  |  |  |  |  |
Beginning balance |  |  |  |  | $ | 12,814 |  |  | $ | 1,055 |
Adoption of ASC 326 |  |  |  |  | — |  |  | 8,885 |
Adjusted beginning balance |  |  |  |  | $ | 12,814 |  |  | $ | 9,940 |
Provision (credit) |  |  |  |  | (1,243) |  |  | 572 |
Ending balance |  |  |  |  | 11,571 |  |  | 10,512 |
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 March 31, 2021 and December 31, 2020 were as follows:
| March 31, 2021
(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 | 11,886 |  |  | 16,417 |  |  | 138.1 |  |  | — |
Non-owner occupied commercial mortgage | 6,951 |  |  | 9,312 |  |  | 134.0 |  |  | — |
Commercial and industrial and leases | 1,256 |  |  | 2,916 |  |  | 232.2 |  |  | — |
Total commercial loans | 21,517 |  |  | 30,440 |  |  | 141.5 |  |  | — |
Consumer: |  |  |  |  |  |  |
Residential mortgage | 21,303 |  |  | 27,279 |  |  | 128.1 |  |  | 120 |
Revolving mortgage | 1,385 |  |  | 1,724 |  |  | 124.5 |  |  | — |
Total consumer loans | 22,688 |  |  | 29,003 |  |  | 127.8 |  |  | 120 |
PCD loans | 20,361 |  |  | 35,016 |  |  | 172.0 |  |  | — |
Total collateral-dependent loans | $ | 64,566 |  |  | $ | 94,459 |  |  | 146.3 | % |  | $ | 120 |
| December 31, 2020
(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 |
PCD loans | 19,042 |  |  | 27,872 |  |  | 146.4 |  |  | — |
Total collateral-dependent loans | $ | 58,825 |  |  | $ | 81,272 |  |  | 138.2 | % |  | $ | 131 |
Troubled Debt Restructurings on Financing Receivables | The following tables provides a summary of total TDRs by accrual status:
| March 31, 2021 |  | December 31, 2020
(Dollars in thousands) | Accruing |  | Nonaccruing |  | Total |  | Accruing |  | Nonaccruing |  | Total
Commercial loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development | $ | 529 |  |  | $ | 41 |  |  | $ | 570 |  |  | $ | 578 |  |  | $ | 54 |  |  | $ | 632 |
Owner occupied commercial mortgage | 38,969 |  |  | 9,986 |  |  | 48,955 |  |  | 37,574 |  |  | 10,889 |  |  | 48,463 |
Non-owner occupied commercial mortgage | 20,541 |  |  | 1,335 |  |  | 21,876 |  |  | 18,336 |  |  | 1,649 |  |  | 19,985 |
Commercial and industrial and leases | 30,956 |  |  | 6,551 |  |  | 37,507 |  |  | 29,131 |  |  | 3,528 |  |  | 32,659 |
Total commercial loans | 90,995 |  |  | 17,913 |  |  | 108,908 |  |  | 85,619 |  |  | 16,120 |  |  | 101,739 |
Consumer: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 25,323 |  |  | 20,802 |  |  | 46,125 |  |  | 29,458 |  |  | 19,380 |  |  | 48,838 |
Revolving mortgage | 18,729 |  |  | 7,331 |  |  | 26,060 |  |  | 20,124 |  |  | 7,128 |  |  | 27,252 |
Construction and land development | 1,501 |  |  | 9 |  |  | 1,510 |  |  | 1,573 |  |  | 9 |  |  | 1,582 |
Consumer auto | 2,173 |  |  | 668 |  |  | 2,841 |  |  | 2,018 |  |  | 696 |  |  | 2,714 |
Consumer other | 910 |  |  | 163 |  |  | 1,073 |  |  | 955 |  |  | 137 |  |  | 1,092 |
Total consumer loans | 48,636 |  |  | 28,973 |  |  | 77,609 |  |  | 54,128 |  |  | 27,350 |  |  | 81,478 |
PCD loans | 20,920 |  |  | 9,509 |  |  | 30,429 |  |  | 17,617 |  |  | 7,346 |  |  | 24,963 |
Total loans | $ | 160,551 |  |  | $ | 56,395 |  |  | $ | 216,946 |  |  | $ | 157,364 |  |  | $ | 50,816 |  |  | $ | 208,180 |
The following table provides the types of modifications designated as TDRs during the three months ended March 31, 2021 and March 31, 2020, as well as a summary of loans modified as a TDR during the twelve-month periods ended March 31, 2021 and March 31, 2020 that subsequently defaulted during the three months ended March 31, 2021 and March 31, 2020. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.
| Three months ended March 31, 2021 |  | Three months ended March 31, 2020
| All restructurings |  | Restructurings with payment default |  | All restructurings |  | Restructurings with payment default
(Dollars in thousands) | Number of Loans | Recorded investment at period end |  | Number of Loans | Recorded investment at period end |  | Number of Loans | Recorded investment at period end |  | Number of Loans | Recorded investment at period end
Loans and leases |  |  |  |  |  |  |  |  |  |  |
Interest only | 6 |  | $ | 6,947 |  |  | 2 |  | $ | 42 |  |  | 10 |  | $ | 3,986 |  |  | — |  | $ | — |
Loan term extension | 25 |  | 3,863 |  |  | 12 |  | 1,749 |  |  | 6 |  | 794 |  |  | 3 |  | 263 |
Below market interest rate | 53 |  | 8,122 |  |  | 20 |  | 1,428 |  |  | 88 |  | 8,165 |  |  | 29 |  | 1,421 |
Discharged from bankruptcy | 45 |  | 4,100 |  |  | 12 |  | 2,365 |  |  | 68 |  | 5,032 |  |  | 28 |  | 1,767 |
Total restructurings | 129 |  | $ | 23,032 |  |  | 46 |  | $ | 5,584 |  |  | 172 |  | $ | 17,977 |  |  | 60 |  | $ | 3,451 |
For the three months ended March 31, 2021 and March 31, 2020, the pre-modification and post-modification outstanding amortized cost of loans modified as TDRs were not materially different.

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financing receivable modified as troubled debt restructuring. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953676-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953682-111524 + Details
Name: | us-gaap_TroubledDebtRestructuringsOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration