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Allowance for Credit Losses (Tables) | 9 Months Ended
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Sep. 30, 2021
Receivables [Abstract] |
Allowance for Credit Losses | Activity in the ACL by portfolio segment is summarized as follows:
|  |  |  |  |  |  |  |  | Three months ended September 30, 2021
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at July 1 |  |  |  |  |  |  |  |  | $ | 76,082 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 94,272 |  |  | $ | 18,740 |  |  | $ | 189,094 |
Provision (credit) |  |  |  |  |  |  |  |  | 975 |  |  |  |  |  |  |  |  |  |  |  |  | (223) |  |  | (1,872) |  |  | (1,120) |
Charge-offs |  |  |  |  |  |  |  |  | (5,967) |  |  |  |  |  |  |  |  |  |  |  |  | (4,307) |  |  | (799) |  |  | (11,073) |
Recoveries |  |  |  |  |  |  |  |  | 1,594 |  |  |  |  |  |  |  |  |  |  |  |  | 2,330 |  |  | 2,369 |  |  | 6,293 |
Balance at September 30 |  |  |  |  |  |  |  |  | $ | 72,684 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 92,072 |  |  | $ | 18,438 |  |  | $ | 183,194 |
|  |  |  |  |  |  |  |  | Three months ended September 30, 2020
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at July 1 |  |  |  |  |  |  |  |  | $ | 76,177 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,345 |  |  | $ | 26,928 |  |  | $ | 222,450 |
Provision (credit) |  |  |  |  |  |  |  |  | 4,793 |  |  |  |  |  |  |  |  |  |  |  |  | 1,874 |  |  | (2,625) |  |  | 4,042 |
Charge-offs |  |  |  |  |  |  |  |  | (3,328) |  |  |  |  |  |  |  |  |  |  |  |  | (5,109) |  |  | (495) |  |  | (8,932) |
Recoveries |  |  |  |  |  |  |  |  | 2,338 |  |  |  |  |  |  |  |  |  |  |  |  | 2,719 |  |  | 1,319 |  |  | 6,376 |
Balance at September 30 |  |  |  |  |  |  |  |  | $ | 79,980 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 118,829 |  |  | $ | 25,127 |  |  | $ | 223,936 |
|  |  |  |  |  |  |  |  | Nine months ended September 30, 2021
(Dollars in thousands) |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |  | Consumer |  | PCD |  | Total
Balance at January 1 |  |  |  |  |  |  |  |  | $ | 80,842 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 119,485 |  |  | $ | 23,987 |  |  | $ | 224,314 |
Provision (credit) |  |  |  |  |  |  |  |  | 332 |  |  |  |  |  |  |  |  |  |  |  |  | (23,208) |  |  | (8,821) |  |  | (31,697) |
Charge-offs |  |  |  |  |  |  |  |  | (12,342) |  |  |  |  |  |  |  |  |  |  |  |  | (12,804) |  |  | (2,018) |  |  | (27,164) |
Recoveries |  |  |  |  |  |  |  |  | 3,852 |  |  |  |  |  |  |  |  |  |  |  |  | 8,599 |  |  | 5,290 |  |  | 17,741 |
Balance at September 30 |  |  |  |  |  |  |  |  | $ | 72,684 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 92,072 |  |  | $ | 18,438 |  |  | $ | 183,194 |
|  |  |  |  |  |  |  |  | Nine months ended September 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) |  |  |  |  |  |  |  |  | 32,854 |  |  |  |  |  |  |  |  |  |  |  |  | 25,066 |  |  | (4,971) |  |  | 52,949 |
Initial allowance on PCD loans |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | 1,193 |  |  | 1,193 |
Charge-offs |  |  |  |  |  |  |  |  | (12,712) |  |  |  |  |  |  |  |  |  |  |  |  | (19,535) |  |  | (3,010) |  |  | (35,257) |
Recoveries |  |  |  |  |  |  |  |  | 5,023 |  |  |  |  |  |  |  |  |  |  |  |  | 7,433 |  |  | 5,378 |  |  | 17,834 |
Balance at September 30 |  |  |  |  |  |  |  |  | $ | 79,980 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 118,829 |  |  | $ | 25,127 |  |  | $ | 223,936 |
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 September 30 |  | Nine months ended September 30
(Dollars in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Allowance for credit losses: |  |  |  |  |  |  |
Beginning balance | $ | 11,103 |  |  | $ | 13,685 |  |  | $ | 12,814 |  |  | $ | 1,055 |
Adoption of ASC 326 | — |  |  | — |  |  | — |  |  | 8,885 |
Adjusted beginning balance | $ | 11,103 |  |  | $ | 13,685 |  |  | $ | 12,814 |  |  | $ | 9,940 |
Provision (credit) | 369 |  |  | 286 |  |  | (1,342) |  |  | 4,031 |
Ending balance | 11,472 |  |  | 13,971 |  |  | 11,472 |  |  | 13,971 |
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 September 30, 2021 and December 31, 2020 were as follows:
| September 30, 2021
(Dollars in thousands) | Collateral-Dependent Loans |  | Net Realizable Value of Collateral |  | Collateral Coverage |  | Allowance for Credit Losses
Commercial: |  |  |  |  |  |  |
Construction and land development | $ | 1,424 |  |  | $ | 1,964 |  |  | 137.9 | % |  | $ | — |
Owner occupied commercial mortgage | 7,411 |  |  | 8,367 |  |  | 112.9 |  |  | — |
Non-owner occupied commercial mortgage | 8,204 |  |  | 11,307 |  |  | 137.8 |  |  | 1,203 |
Commercial and industrial and leases | 4,787 |  |  | 6,530 |  |  | 136.4 |  |  | 230 |
Total commercial loans | 21,826 |  |  | 28,168 |  |  | 129.1 |  |  | 1,433 |
Consumer: |  |  |  |  |  |  |
Residential mortgage | 11,423 |  |  | 14,625 |  |  | 128.0 |  |  | — |
Revolving mortgage | — |  |  | — |  |  | — |  |  | — |
Total consumer loans | 11,423 |  |  | 14,625 |  |  | 128.0 |  |  | — |
PCD loans | 18,154 |  |  | 32,788 |  |  | 180.6 |  |  | — |
Total collateral-dependent loans | $ | 51,403 |  |  | $ | 75,581 |  |  | 147.0 | % |  | $ | 1,433 |
| December 31, 2020
(Dollars in thousands) | Collateral-Dependent Loans |  | Net Realizable Value of Collateral |  | Collateral Coverage |  | Allowance for Credit Losses
Commercial: |  |  |  |  |  |  |
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:
| September 30, 2021 |  | December 31, 2020
(Dollars in thousands) | Accruing |  | Nonaccruing |  | Total |  | Accruing |  | Nonaccruing |  | Total
Commercial: |  |  |  |  |  |  |  |  |  |  |
Construction and land development | $ | 346 |  |  | $ | 33 |  |  | $ | 379 |  |  | $ | 578 |  |  | $ | 54 |  |  | $ | 632 |
Owner occupied commercial mortgage | 46,255 |  |  | 10,661 |  |  | 56,916 |  |  | 37,574 |  |  | 10,889 |  |  | 48,463 |
Non-owner occupied commercial mortgage | 20,022 |  |  | 3,763 |  |  | 23,785 |  |  | 18,336 |  |  | 1,649 |  |  | 19,985 |
Commercial and industrial and leases | 12,506 |  |  | 11,295 |  |  | 23,801 |  |  | 29,131 |  |  | 3,528 |  |  | 32,659 |
Total commercial loans | 79,129 |  |  | 25,752 |  |  | 104,881 |  |  | 85,619 |  |  | 16,120 |  |  | 101,739 |
Consumer: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 22,106 |  |  | 14,937 |  |  | 37,043 |  |  | 29,458 |  |  | 19,380 |  |  | 48,838 |
Revolving mortgage | 16,533 |  |  | 6,925 |  |  | 23,458 |  |  | 20,124 |  |  | 7,128 |  |  | 27,252 |
Construction and land development | 2,380 |  |  | 282 |  |  | 2,662 |  |  | 1,573 |  |  | 9 |  |  | 1,582 |
Consumer auto | 1,888 |  |  | 636 |  |  | 2,524 |  |  | 2,018 |  |  | 696 |  |  | 2,714 |
Consumer other | 774 |  |  | 61 |  |  | 835 |  |  | 955 |  |  | 137 |  |  | 1,092 |
Total consumer loans | 43,681 |  |  | 22,841 |  |  | 66,522 |  |  | 54,128 |  |  | 27,350 |  |  | 81,478 |
PCD loans | 29,207 |  |  | 12,365 |  |  | 41,572 |  |  | 17,617 |  |  | 7,346 |  |  | 24,963 |
Total loans | $ | 152,017 |  |  | $ | 60,958 |  |  | $ | 212,975 |  |  | $ | 157,364 |  |  | $ | 50,816 |  |  | $ | 208,180 |
The following table provides the types of modifications designated as TDRs during the three and nine months ended September 30, 2021 and 2020.
| Three months ended September 30, 2021 |  | Three months ended September 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 | 7 |  | $ | 9,639 |  |  |  |  |  | 6 |  | $ | 5,703 |  |  |  |
Loan term extension | 41 |  | 6,371 |  |  |  |  |  | 29 |  | 2,380 |  |  |  |
Below market interest rate | 47 |  | 3,126 |  |  |  |  |  | 55 |  | 15,341 |  |  |  |
Discharged from bankruptcy | 21 |  | 2,783 |  |  |  |  |  | 55 |  | 1,654 |  |  |  |
Total restructurings | 116 |  | $ | 21,919 |  |  |  |  |  | 145 |  | $ | 25,078 |  |  |  |
| Nine months ended September 30, 2021 |  | Nine months ended September 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 | 17 |  | $ | 19,728 |  |  |  |  |  | 23 |  | $ | 24,847 |  |  |  |
Loan term extension | 112 |  | 14,500 |  |  |  |  |  | 62 |  | 5,885 |  |  |  |
Below market interest rate | 148 |  | 21,004 |  |  |  |  |  | 212 |  | 38,740 |  |  |  |
Discharged from bankruptcy | 110 |  | 12,478 |  |  |  |  |  | 165 |  | 7,025 |  |  |  |
Total restructurings | 387 |  | $ | 67,710 |  |  |  |  |  | 462 |  | $ | 76,497 |  |  |  |
For the nine months ended September 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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