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Allowance for Credit Losses (Tables) | 6 Months Ended
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Jun. 30, 2021
Receivables [Abstract] |
Allowance for Credit Losses | Activity in the ACL by portfolio segment is summarized as follows:
|  |  |  |  |  |  |  |  | Three months ended June 30, 2021
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at April 1 |  |  |  |  |  |  |  |  | $ | 74,864 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 112,852 |  |  | $ | 22,935 |  |  | $ | 210,651 |
Provision (credit) |  |  |  |  |  |  |  |  | 3,279 |  |  |  |  |  |  |  |  |  |  |  |  | (17,481) |  |  | (5,401) |  |  | (19,603) |
Charge-offs |  |  |  |  |  |  |  |  | (3,044) |  |  |  |  |  |  |  |  |  |  |  |  | (4,028) |  |  | (456) |  |  | (7,528) |
Recoveries |  |  |  |  |  |  |  |  | 983 |  |  |  |  |  |  |  |  |  |  |  |  | 2,929 |  |  | 1,662 |  |  | 5,574 |
Balance at June 30 |  |  |  |  |  |  |  |  | $ | 76,082 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 94,272 |  |  | $ | 18,740 |  |  | $ | 189,094 |
|  |  |  |  |  |  |  |  | Three months ended June 30, 2020
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at April 1 |  |  |  |  |  |  |  |  | $ | 72,410 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 109,933 |  |  | $ | 26,916 |  |  | $ | 209,259 |
Provision (credit) |  |  |  |  |  |  |  |  | 6,628 |  |  |  |  |  |  |  |  |  |  |  |  | 13,682 |  |  | 242 |  |  | 20,552 |
Charge-offs |  |  |  |  |  |  |  |  | (4,015) |  |  |  |  |  |  |  |  |  |  |  |  | (6,657) |  |  | (1,392) |  |  | (12,064) |
Recoveries |  |  |  |  |  |  |  |  | 1,154 |  |  |  |  |  |  |  |  |  |  |  |  | 2,387 |  |  | 1,162 |  |  | 4,703 |
Balance at June 30 |  |  |  |  |  |  |  |  | $ | 76,177 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,345 |  |  | $ | 26,928 |  |  | $ | 222,450 |
|  |  |  |  |  |  |  |  | Six months ended June 30, 2021
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at January 1 |  |  |  |  |  |  |  |  | $ | 80,842 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,485 |  |  | $ | 23,987 |  |  | $ | 224,314 |
Provision (credit) |  |  |  |  |  |  |  |  | (643) |  |  |  |  |  |  |  |  |  |  |  |  | (22,985) |  |  | (6,949) |  |  | (30,577) |
Charge-offs |  |  |  |  |  |  |  |  | (6,375) |  |  |  |  |  |  |  |  |  |  |  |  | (8,497) |  |  | (1,219) |  |  | (16,091) |
Recoveries |  |  |  |  |  |  |  |  | 2,258 |  |  |  |  |  |  |  |  |  |  |  |  | 6,269 |  |  | 2,921 |  |  | 11,448 |
Balance at June 30 |  |  |  |  |  |  |  |  | $ | 76,082 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 94,272 |  |  | $ | 18,740 |  |  | $ | 189,094 |
|  |  |  |  |  |  |  |  | Six months ended June 30, 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) |  |  |  |  |  |  |  |  | 28,165 |  |  |  |  |  |  |  |  |  |  |  |  | 23,088 |  |  | (2,346) |  |  | 48,907 |
Initial allowance on PCD loans |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | 1,193 |  |  | 1,193 |
Charge-offs |  |  |  |  |  |  |  |  | (9,384) |  |  |  |  |  |  |  |  |  |  |  |  | (14,426) |  |  | (2,515) |  |  | (26,325) |
Recoveries |  |  |  |  |  |  |  |  | 2,581 |  |  |  |  |  |  |  |  |  |  |  |  | 4,818 |  |  | 4,059 |  |  | 11,458 |
Balance at June 30 |  |  |  |  |  |  |  |  | $ | 76,177 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,345 |  |  | $ | 26,928 |  |  | $ | 222,450 |
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 June 30 |  | Six months ended June 30
(Dollars in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Allowance for credit losses: |  |  |  |  |  |  |
Beginning balance | $ | 11,571 |  |  | $ | 10,512 |  |  | $ | 12,814 |  |  | $ | 1,055 |
Adoption of ASC 326 | — |  |  | — |  |  | — |  |  | 8,885 |
Adjusted beginning balance | $ | 11,571 |  |  | $ | 10,512 |  |  | $ | 12,814 |  |  | $ | 9,940 |
Provision (credit) | (468) |  |  | 3,173 |  |  | (1,711) |  |  | 3,745 |
Ending balance | 11,103 |  |  | 13,685 |  |  | 11,103 |  |  | 13,685 |
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 June 30, 2021 and December 31, 2020 were as follows:
| June 30, 2021
(Dollars in thousands) | Collateral-Dependant Loans |  | Net Realizable Value of Collateral |  | Collateral Coverage |  | Allowance for Credit Losses
Commercial loans: |  |  |  |  |  |  |
Construction and land development | $ | 1,425 |  |  | $ | 1,976 |  |  | 138.7 | % |  | $ | — |
Owner occupied commercial mortgage | 11,288 |  |  | 15,591 |  |  | 138.1 |  |  | — |
Non-owner occupied commercial mortgage | 5,405 |  |  | 8,017 |  |  | 148.3 |  |  | — |
Commercial and industrial and leases | 7,736 |  |  | 9,672 |  |  | 125.0 |  |  | 230 |
Total commercial loans | 25,854 |  |  | 35,256 |  |  | 136.4 |  |  | 230 |
Consumer: |  |  |  |  |  |  |
Residential mortgage | 15,237 |  |  | 23,411 |  |  | 153.6 |  |  | — |
Revolving mortgage | 1,385 |  |  | 1,724 |  |  | 124.5 |  |  | — |
Total consumer loans | 16,622 |  |  | 25,135 |  |  | 151.2 |  |  | — |
PCD loans | 19,894 |  |  | 34,495 |  |  | 173.4 |  |  | — |
Total collateral-dependent loans | $ | 62,370 |  |  | $ | 94,886 |  |  | 152.1 | % |  | $ | 230 |
| 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:
| June 30, 2021 |  | December 31, 2020
(Dollars in thousands) | Accruing |  | Nonaccruing |  | Total |  | Accruing |  | Nonaccruing |  | Total
Commercial loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development | $ | 408 |  |  | $ | 38 |  |  | $ | 446 |  |  | $ | 578 |  |  | $ | 54 |  |  | $ | 632 |
Owner occupied commercial mortgage | 37,216 |  |  | 12,097 |  |  | 49,313 |  |  | 37,574 |  |  | 10,889 |  |  | 48,463 |
Non-owner occupied commercial mortgage | 20,364 |  |  | 3,474 |  |  | 23,838 |  |  | 18,336 |  |  | 1,649 |  |  | 19,985 |
Commercial and industrial and leases | 12,761 |  |  | 8,569 |  |  | 21,330 |  |  | 29,131 |  |  | 3,528 |  |  | 32,659 |
Total commercial loans | 70,749 |  |  | 24,178 |  |  | 94,927 |  |  | 85,619 |  |  | 16,120 |  |  | 101,739 |
Consumer: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 21,079 |  |  | 17,220 |  |  | 38,299 |  |  | 29,458 |  |  | 19,380 |  |  | 48,838 |
Revolving mortgage | 18,038 |  |  | 7,196 |  |  | 25,234 |  |  | 20,124 |  |  | 7,128 |  |  | 27,252 |
Construction and land development | 2,482 |  |  | 289 |  |  | 2,771 |  |  | 1,573 |  |  | 9 |  |  | 1,582 |
Consumer auto | 2,134 |  |  | 653 |  |  | 2,787 |  |  | 2,018 |  |  | 696 |  |  | 2,714 |
Consumer other | 841 |  |  | 56 |  |  | 897 |  |  | 955 |  |  | 137 |  |  | 1,092 |
Total consumer loans | 44,574 |  |  | 25,414 |  |  | 69,988 |  |  | 54,128 |  |  | 27,350 |  |  | 81,478 |
PCD loans | 23,981 |  |  | 9,073 |  |  | 33,054 |  |  | 17,617 |  |  | 7,346 |  |  | 24,963 |
Total loans | $ | 139,304 |  |  | $ | 58,665 |  |  | $ | 197,969 |  |  | $ | 157,364 |  |  | $ | 50,816 |  |  | $ | 208,180 |
The following table provides the types of modifications designated as TDRs during the three and six months ended June 30, 2021 and 2020.
| Three months ended June 30, 2021 |  | Three months ended June 30, 2020
| All restructurings |  |  |  | All restructurings |  |
(Dollars in thousands) | Number of Loans | Recorded investment at period end |  |  |  |  | Number of Loans | Recorded investment at period end |  |  |
Loans and leases |  |  |  |  |  |  |  |  |  |  |
Interest only | 4 |  | $ | 3,353 |  |  |  |  |  | 7 |  | $ | 15,352 |  |  |  |
Loan term extension | 41 |  | 4,053 |  |  |  |  |  | 27 |  | 2,925 |  |  |  |
Below market interest rate | 37 |  | 7,730 |  |  |  |  |  | 69 |  | 17,291 |  |  |  |
Discharged from bankruptcy | 39 |  | 6,421 |  |  |  |  |  | 43 |  | 1,472 |  |  |  |
Total restructurings | 121 |  | $ | 21,557 |  |  |  |  |  | 146 |  | $ | 37,040 |  |  |  |
| Six months ended June 30, 2021 |  | Six months ended June 30, 2020
| All restructurings |  |  |  | All restructurings |  |
(Dollars in thousands) | Number of Loans | Recorded investment at period end |  |  |  |  | Number of Loans | Recorded investment at period end |  |  |
Loans and leases |  |  |  |  |  |  |  |  |  |  |
Interest only | 10 |  | $ | 10,118 |  |  |  |  |  | 17 |  | $ | 19,328 |  |  |  |
Loan term extension | 66 |  | 7,700 |  |  |  |  |  | 33 |  | 3,657 |  |  |  |
Below market interest rate | 90 |  | 15,643 |  |  |  |  |  | 157 |  | 25,389 |  |  |  |
Discharged from bankruptcy | 84 |  | 10,191 |  |  |  |  |  | 110 |  | 5,640 |  |  |  |
Total restructurings | 250 |  | $ | 43,652 |  |  |  |  |  | 317 |  | $ | 54,014 |  |  |  |
For the six months ended June 30, 2021 and 2020, the pre-modification and post-modification outstanding amortized cost of loans modified as TDRs were not materially different.

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