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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Types of Loans in Loan Portfolio

The loan portfolio consists of various types of loans and is categorized by major type as follows:


		March 31, 2024				December 31, 2023
		(Dollars in thousands)
Residential mortgage loans held for sale		$	6,380			$	5,734

Commercial and industrial			2,470,848				2,305,040
Real estate:
Construction, land development and other land loans			2,876,588				3,076,591
1-4 family residential (includes home equity)			8,275,040				8,162,344
Commercial real estate (includes multi-family residential)			5,631,460				5,662,948
Farmland			590,896				598,898
Agriculture			222,196				217,145
Consumer and other			326,915				329,593
Total loans held for investment, excluding Warehouse Purchase Program			20,393,943				20,352,559
Warehouse Purchase Program			864,924				822,245
Total loans, including Warehouse Purchase Program		$	21,265,247			$	21,180,538

Related Party Loans

An analysis of activity with respect to these related party loans is as follows:


		As of and for the three months ended March 31, 2024				As of and for the year ended December 31, 2023
		(Dollars in thousands)
Beginning balance on January 1		$	292			$	547
New loans			1				64
Repayments			(3	)			(319	)
Ending balance		$	290			$	292

Aging Analysis of Past Due Loans

An aging analysis of past due loans, segregated by category of loan, is presented below:


		March 31, 2024
		Loans Past Due and Still Accruing
		30-89 Days				90 or More Days				Total Past Due Loans				Nonaccrual Loans				Current Loans				Total Loans
		(Dollars in thousands)
Construction, land development and other land loans		$	17,078			$	—			$	17,078			$	14,749			$	2,844,761			$	2,876,588
Warehouse Purchase Program loans			—				—				—				—				864,924				864,924
Agriculture and agriculture real estate (includes farmland)			3,672				428				4,100				3,286				805,706				813,092
1-4 family (includes home equity) (1)			37,462				—				37,462				29,464				8,214,494				8,281,420
Commercial real estate (includes multi-family residential)			13,036				2,417				15,453				21,303				5,594,704				5,631,460
Commercial and industrial			20,715				190				20,905				9,542				2,440,401				2,470,848
Consumer and other			432				—				432				131				326,352				326,915
Total		$	92,395			$	3,035			$	95,430			$	78,475			$	21,091,342			$	21,265,247


		December 31, 2023
		Loans Past Due and Still Accruing
		30-89 Days				90 or More Days				Total Past Due Loans				Nonaccrual Loans				Current Loans				Total Loans
		(Dollars in thousands)
Construction, land development and other land loans		$	21,627			$	1,635			$	23,262			$	14,770			$	3,038,559			$	3,076,591
Warehouse Purchase Program loans			—				—				—				—				822,245				822,245
Agriculture and agriculture real estate (includes farmland)			8,572				—				8,572				1,460				806,011				816,043
1-4 family (includes home equity) (1)			38,350				130				38,480				25,694				8,103,904				8,168,078
Commercial real estate (includes multi-family residential)			23,511				—				23,511				18,662				5,620,775				5,662,948
Commercial and industrial			14,782				430				15,212				8,066				2,281,762				2,305,040
Consumer and other			503				—				503				36				329,054				329,593
Total		$	107,345			$	2,195			$	109,540			$	68,688			$	21,002,310			$	21,180,538

(1)

Includes $6.4 million and $5.7 million of residential mortgage loans held for sale at March 31, 2024 and December 31, 2023, respectively.

Non-performing Assets

The following table presents information regarding nonperforming assets as of the dates indicated:


		March 31, 2024				December 31, 2023
		(Dollars in thousands)
Nonaccrual loans (1) (2)		$	78,475			$	68,688
Accruing loans 90 or more days past due			3,035				2,195
Total nonperforming loans			81,510				70,883
Repossessed assets			97				76
Other real estate			2,204				1,708
Total nonperforming assets		$	83,811			$	72,667

Nonperforming assets to total loans and other real estate			0.39	%			0.34	%
Nonperforming assets to total loans, excluding Warehouse Purchase Program loans, and other real estate			0.41	%			0.36	%
Nonaccrual loans to total loans			0.37	%			0.32	%
Nonaccrual loans to total loans, excluding Warehouse Purchase Program loans			0.38	%			0.34	%

(1)

ASU 2022-02 became effective for the Company on January 1, 2023.

(2)

There were no nonperforming Warehouse Purchase Program loans or Warehouse Purchase Program lines of credit for the periods presented.

Recorded Investment and Outstanding Balance for Purchased Credit Deteriorated Loans and Non Purchased Credit Deteriorated Loans

The recorded investment in PCD loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of March 31, 2024 and December 31, 2023.


		March 31, 2024				December 31, 2023
		(Dollars in thousands)
PCD loans:
Outstanding balance		$	495,074			$	533,653
Discount			(7,361	)			(7,914	)
Recorded investment		$	487,713			$	525,739

The recorded investment in Non-PCD loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of March 31, 2024 and December 31, 2023.


		March 31, 2024				December 31, 2023
		(Dollars in thousands)
Non-PCD loans:
Outstanding balance		$	1,676,563			$	1,823,809
Discount			(18,681	)			(19,992	)
Recorded investment		$	1,657,882			$	1,803,817

Summary of Changes in Accretable Yields of Acquired Loans

Changes in the accretable yield for acquired PCD loans for the three months ended March 31, 2024 and 2023 were as follows:


		Three Months Ended March 31,
		2024				2023
		(Dollars in thousands)
Balance at beginning of period		$	7,914			$	3,361
Accretion charge-offs			(5	)			—
Accretion			(548	)			(339	)
Balance at March 31,		$	7,361			$	3,022

Changes in the discount accretion for Non-PCD loans for the three months ended March 31, 2024 and 2023 were as follows:


		Three Months Ended March 31,
		2024				2023
		(Dollars in thousands)
Balance at beginning of period		$	19,992			$	2,233
Accretion recoveries			1				—
Accretion			(1,312	)			(532	)
Balance at March 31,		$	18,681			$	1,701

Risk Grade by Category of Loan and Year of Origination/Renewal

The following tables present loans by risk grade, by category of loan and year of origination/renewal at March 31, 2024.


		Term Loans
		Amortized Cost Basis by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Revolving Loans Converted to Term Loans				Total
		(Dollars in thousands)

Construction, Land Development and Other Land Loans
Grade 1		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
Grade 2			—				1,106				166				—				—				14				—				—				1,286
Grade 3			103,359				745,828				696,969				364,477				215,354				57,308				119,072				—				2,302,367
Grade 4			3,478				83,562				146,216				42,544				5,572				26,944				30,782				—				339,098
Grade 5			—				—				1,357				—				23,373				15,796				769				—				41,295
Grade 6			—				570				—				7,698				184				561				—				—				9,013
Grade 7			—				183				2,647				343				—				242				248				—				3,663
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			1,218				29,616				98,450				15,171				7,649				7,371				20,391				—				179,866
Total		$	108,055			$	860,865			$	945,805			$	430,233			$	252,132			$	108,236			$	171,262			$	—			$	2,876,588

Current-period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Agriculture and Agriculture Real Estate (includes Farmland)
Grade 1		$	720			$	1,179			$	1,231			$	172			$	252			$	369			$	8,590			$	—			$	12,513
Grade 2			—				13				60				101				—				722				46				—				942
Grade 3			20,051				126,212				168,180				76,630				47,924				118,858				102,641				94				660,590
Grade 4			3,436				21,435				19,644				25,993				4,122				9,589				21,807				—				106,026
Grade 5			725				57				799				885				—				1,143				—				—				3,609
Grade 6			—				—				—				78				—				1,195				—				—				1,273
Grade 7			—				—				1,469				558				339				29				—				—				2,395
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			—				1,986				2,532				1,345				14,558				2,630				2,693				—				25,744
Total		$	24,932			$	150,882			$	193,915			$	105,762			$	67,195			$	134,535			$	135,777			$	94			$	813,092

Current-period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	121			$	—			$	—			$	121

1-4 Family (includes Home Equity) (1)
Grade 1		$	—			$	74			$	153			$	—			$	109			$	—			$	—			$	—			$	336
Grade 2			—				526				1,243				153				236				2,602				—				—				4,760
Grade 3			109,256				1,172,870				2,253,123				2,140,728				1,021,887				1,310,779				91,597				2,757				8,102,997
Grade 4			1,178				15,265				15,813				25,722				5,681				64,138				2,871				204				130,872
Grade 5			—				—				1,206				—				119				2,517				—				—				3,842
Grade 6			—				—				357				41				19				1,840				—				—				2,257
Grade 7			—				1,744				7,554				5,304				4,433				9,293				95				—				28,423
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			—				625				4,243				475				469				2,121				—				—				7,933
Total		$	110,434			$	1,191,104			$	2,283,692			$	2,172,423			$	1,032,953			$	1,393,290			$	94,563			$	2,961			$	8,281,420

Current-period gross write-offs		$	—			$	—			$	389			$	—			$	33			$	39			$	—			$	—			$	461


		Term Loans
		Amortized Cost Basis by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Revolving Loans Converted to Term Loans				Total
		(Dollars in thousands)

Commercial Real Estate (includes Multi-Family Residential)
Grade 1		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
Grade 2			—				—				1,128				—				459				2,232				—				—				3,819
Grade 3			50,492				403,245				908,841				680,193				405,589				1,246,771				77,627				4,591				3,777,349
Grade 4			2,667				43,104				262,140				172,287				217,796				716,336				15,857				—				1,430,187
Grade 5			—				192				2,538				4,771				—				89,422				2,355				—				99,278
Grade 6			—				—				—				356				11,451				76,088				—				—				87,895
Grade 7			—				1,693				827				2,464				—				806				—				—				5,790
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			540				13,613				53,166				49,281				38,547				71,666				329				—				227,142
Total		$	53,699			$	461,847			$	1,228,640			$	909,352			$	673,842			$	2,203,321			$	96,168			$	4,591			$	5,631,460

Current-period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial and Industrial
Grade 1		$	6,392			$	15,267			$	9,372			$	6,418			$	2,811			$	6,188			$	41,360			$	176			$	87,984
Grade 2			—				695				7,799				219				195				3,651				2,295				—				14,854
Grade 3			211,874				206,299				222,945				147,665				49,661				187,230				910,134				30,276				1,966,084
Grade 4			20,633				44,614				30,936				14,641				11,286				110,319				65,063				2,222				299,714
Grade 5			—				17				21,827				6,057				1,666				788				8,200				100				38,655
Grade 6			413				311				3,898				615				354				962				2,390				—				8,943
Grade 7			—				3,900				420				195				1,268				1,416				457				—				7,656
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			—				3,689				14,070				3,637				661				2,439				22,462				—				46,958
Total		$	239,312			$	274,792			$	311,267			$	179,447			$	67,902			$	312,993			$	1,052,361			$	32,774			$	2,470,848

Current-period gross write-offs		$	—			$	53			$	349			$	39			$	—			$	24			$	895			$	—			$	1,360

Consumer and Other
Grade 1		$	4,614			$	12,520			$	5,465			$	2,813			$	1,681			$	5,914			$	2,588			$	—			$	35,595
Grade 2			6,132				12,406				14,181				—				—				1,839				1,507				—				36,065
Grade 3			24,054				40,317				38,129				24,769				11,901				17,352				75,004				11				231,537
Grade 4			—				1,748				257				1,105				15,259				2,255				2,865				—				23,489
Grade 5			—				—				—				—				—				—				—				—				—
Grade 6			—				—				31				5				—				—				—				—				36
Grade 7			—				—				—				—				122				1				—				—				123
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			—				—				—				34				7				15				14				—				70
Total		$	34,800			$	66,991			$	58,063			$	28,726			$	28,970			$	27,376			$	81,978			$	11			$	326,915

Current-period gross write-offs		$	1,470			$	20			$	17			$	24			$	—			$	70			$	58			$	—			$	1,659


		Term Loans
		Amortized Cost Basis by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Revolving Loans Converted to Term Loans				Total
		(Dollars in thousands)

Warehouse Purchase Program
Grade 1		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
Grade 2			—				—				—				—				—				—				—				—				—
Grade 3			864,924				—				—				—				—				—				—				—				864,924
Grade 4			—				—				—				—				—				—				—				—				—
Grade 5			—				—				—				—				—				—				—				—				—
Grade 6			—				—				—				—				—				—				—				—				—
Grade 7			—				—				—				—				—				—				—				—				—
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			—				—				—				—				—				—				—				—				—
Total		$	864,924			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	864,924

Current-period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Total
Grade 1		$	11,726			$	29,040			$	16,221			$	9,403			$	4,853			$	12,471			$	52,538			$	176			$	136,428
Grade 2			6,132				14,746				24,577				473				890				11,060				3,848				—				61,726
Grade 3			1,384,010				2,694,771				4,288,187				3,434,462				1,752,316				2,938,298				1,376,075				37,729				17,905,848
Grade 4			31,392				209,728				475,006				282,292				259,716				929,581				139,245				2,426				2,329,386
Grade 5			725				266				27,727				11,713				25,158				109,666				11,324				100				186,679
Grade 6			413				881				4,286				8,793				12,008				80,646				2,390				—				109,417
Grade 7			—				7,520				12,917				8,864				6,162				11,787				800				—				48,050
Grade 8			—				—				—				—				—				—				—				—				—
Grade 9			—				—				—				—				—				—				—				—				—
PCD Loans			1,758				49,529				172,461				69,943				61,891				86,242				45,889				—				487,713
Total		$	1,436,156			$	3,006,481			$	5,021,382			$	3,825,943			$	2,122,994			$	4,179,751			$	1,632,109			$	40,431			$	21,265,247

Current-period gross write-offs		$	1,470			$	73			$	755			$	63			$	33			$	254			$	953			$	—			$	3,601

(1)

Includes $6.4 million of residential mortgage loans held for sale at March 31, 2024.

Allowance for Credit Losses on Loans by Category of Loan

The following table details activity in the allowance for credit losses on loans by category of loan for the three months ended March 31, 2024 and 2023.


		Construction, Land Development and Other Land Loans				Agriculture and Agriculture Real Estate (includes Farmland)				1-4 Family (includes Home Equity)				Commercial Real Estate (includes Multi-Family Residential)				Commercial and Industrial				Consumer and Other				Total
		(Dollars in thousands)
Allowance for credit losses on loans:
Three Months Ended
Balance December 31, 2023		$	87,775			$	11,380			$	77,652			$	88,664			$	59,832			$	7,059			$	332,362
Provision for credit losses on loans			(5,619	)			1,270				2,469				(1,468	)			2,067				1,281				—
Charge-offs			—				(121	)			(461	)			—				(1,360	)			(1,659	)			(3,601	)
Recoveries			2				98				4				17				1,077				260				1,458
Net (charge-offs) recoveries			2				(23	)			(457	)			17				(283	)			(1,399	)			(2,143	)
Balance March 31, 2024		$	82,158			$	12,627			$	79,664			$	87,213			$	61,616			$	6,941			$	330,219

Allowance for credit losses on loans:
Three Months Ended
Balance December 31, 2022		$	78,853			$	7,699			$	60,795			$	66,272			$	62,319			$	5,638			$	281,576
Provision for credit losses			1,695				356				1,603				1,699				(6,495	)			1,142				—
Charge-offs			—				—				(65	)			—				(901	)			(1,225	)			(2,191	)
Recoveries			13				6				205				1				2,373				208				2,806
Net (charge-offs) recoveries			13				6				140				1				1,472				(1,017	)			615
Balance March 31, 2023		$	80,561			$	8,061			$	62,538			$	67,972			$	57,296			$	5,763			$	282,191

Schedule of Amortized Cost of Loans Experiencing Financial Difficulty and Modified

The following table displays the amortized cost of loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and 2023, presented by category of loan and type of modification.


		Term Extension				Percentage of Total Loans Held for Investment
		(Dollars in thousands)
Three Months Ended March 31, 2024
Commercial and industrial		$	413				—
Agriculture			11,000				0.05	%
Total		$	11,413				0.05	%

Three Months Ended March 31, 2023
Construction, land development and other land loans		$	4,233				0.02	%
Total		$	4,233				0.02	%

Schedule of Loan Modifications

The following table describes the modifications made to the loans presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and 2023.


Term Extension
Loan Type		Three Months Ended March 31, 2024
Commercial and industrial		Modified to a 7 year term
Agriculture		Modified to a 2 year term

Loan Type		Three Months Ended March 31, 2023
Construction, land development and other land loans		Less than 12-month extension