XML 33 R26.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Loans and Allowance for Credit Losses (Tables)
6 Months Ended
Jun. 30, 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:

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

Residential mortgage loans held for sale

 

$

9,951

 

 

$

5,734

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

2,644,271

 

 

 

2,305,040

 

Real estate:

 

 

 

 

 

 

Construction, land development and other land loans

 

 

2,828,372

 

 

 

3,076,591

 

1-4 family residential (includes home equity)

 

 

8,416,962

 

 

 

8,162,344

 

Commercial real estate (includes multi-family residential)

 

 

5,961,884

 

 

 

5,662,948

 

Farmland

 

 

694,103

 

 

 

598,898

 

Agriculture

 

 

343,258

 

 

 

217,145

 

Consumer and other

 

 

340,611

 

 

 

329,593

 

Total loans held for investment, excluding Warehouse Purchase Program

 

 

21,229,461

 

 

 

20,352,559

 

Warehouse Purchase Program

 

 

1,081,403

 

 

 

822,245

 

Total loans, including Warehouse Purchase Program

 

$

22,320,815

 

 

$

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
six months ended
June 30, 2024

 

 

As of and for the
year ended
December
31, 2023

 

 

 

(Dollars in thousands)

 

Beginning balance on January 1

 

$

292

 

 

$

547

 

New loans

 

 

2

 

 

 

64

 

Repayments

 

 

(12

)

 

 

(319

)

Ending balance

 

$

282

 

 

$

292

 

Aging Analysis of Past Due Loans

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

 

 

 

June 30, 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

 

$

16,728

 

 

$

55

 

 

$

16,783

 

 

$

2,504

 

 

$

2,809,085

 

 

$

2,828,372

 

Warehouse Purchase Program loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,081,403

 

 

 

1,081,403

 

Agriculture and agriculture real estate (includes farmland)

 

 

5,473

 

 

 

 

 

 

5,473

 

 

 

2,550

 

 

 

1,029,338

 

 

 

1,037,361

 

1-4 family (includes home equity) (1)

 

 

40,339

 

 

 

 

 

 

40,339

 

 

 

32,408

 

 

 

8,354,166

 

 

 

8,426,913

 

Commercial real estate (includes multi-family residential)

 

 

8,583

 

 

 

 

 

 

8,583

 

 

 

31,064

 

 

 

5,922,237

 

 

 

5,961,884

 

Commercial and industrial

 

 

14,459

 

 

 

100

 

 

 

14,559

 

 

 

15,575

 

 

 

2,614,137

 

 

 

2,644,271

 

Consumer and other

 

 

1,082

 

 

 

167

 

 

 

1,249

 

 

 

74

 

 

 

339,288

 

 

 

340,611

 

Total

 

$

86,664

 

 

$

322

 

 

$

86,986

 

 

$

84,175

 

 

$

22,149,654

 

 

$

22,320,815

 

 

 

 

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 $10.0 million and $5.7 million of residential mortgage loans held for sale at June 30, 2024 and December 31, 2023, respectively.
Non-performing Assets

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

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

Nonaccrual loans (1) (2)

 

$

84,175

 

 

$

68,688

 

Accruing loans 90 or more days past due

 

 

322

 

 

 

2,195

 

Total nonperforming loans

 

 

84,497

 

 

 

70,883

 

Repossessed assets

 

 

113

 

 

 

76

 

Other real estate

 

 

4,960

 

 

 

1,708

 

Total nonperforming assets

 

$

89,570

 

 

$

72,667

 

 

 

 

 

 

 

 

Nonperforming assets to total loans and other real estate

 

 

0.40

%

 

 

0.34

%

Nonperforming assets to total loans, excluding Warehouse Purchase Program loans, and other real estate

 

 

0.42

%

 

 

0.36

%

Nonaccrual loans to total loans

 

 

0.38

%

 

 

0.32

%

Nonaccrual loans to total loans, excluding Warehouse Purchase Program loans

 

 

0.40

%

 

 

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 June 30, 2024 and December 31, 2023.

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

PCD loans:

 

 

 

Outstanding balance

 

$

512,235

 

 

$

533,653

 

Discount

 

 

(9,507

)

 

 

(7,914

)

Recorded investment

 

$

502,728

 

 

$

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 June 30, 2024 and December 31, 2023.

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

Non-PCD loans:

 

 

 

Outstanding balance

 

$

2,447,866

 

 

$

1,823,809

 

Discount

 

 

(34,250

)

 

 

(19,992

)

Recorded investment

 

$

2,413,616

 

 

$

1,803,817

 

Summary of Changes in Accretable Yields of Acquired Loans

Changes in the accretable yield for acquired PCD loans for the three and six months ended June 30, 2024 and 2023 were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Balance at beginning of period

 

$

7,361

 

 

$

3,022

 

 

$

7,914

 

 

$

3,361

 

Additions

 

 

4,558

 

 

 

8,336

 

 

 

4,558

 

 

 

8,336

 

Adjustments

 

 

(18

)

 

 

(70

)

 

 

(23

)

 

 

(70

)

Accretion

 

 

(2,394

)

 

 

(1,178

)

 

 

(2,942

)

 

 

(1,517

)

Balance at June 30,

 

$

9,507

 

 

$

10,110

 

 

$

9,507

 

 

$

10,110

 

Changes in the discount accretion for Non-PCD loans for the three and six months ended June 30, 2024 and 2023 were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Balance at beginning of period

 

$

18,681

 

 

$

1,701

 

 

$

19,992

 

 

$

2,233

 

Additions

 

 

20,378

 

 

 

22,593

 

 

 

20,378

 

 

 

22,593

 

Adjustments

 

 

(12

)

 

 

 

 

 

(11

)

 

 

 

Accretion

 

 

(4,797

)

 

 

(1,242

)

 

 

(6,109

)

 

 

(1,774

)

Balance at June 30,

 

$

34,250

 

 

$

23,052

 

 

$

34,250

 

 

$

23,052

 

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 June 30, 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

 

 

 

 

 

1,096

 

 

 

163

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

 

1,273

 

Grade 3

 

 

266,862

 

 

 

699,907

 

 

 

597,832

 

 

 

295,308

 

 

 

125,102

 

 

 

47,761

 

 

 

99,061

 

 

 

10,049

 

 

 

2,141,882

 

Grade 4

 

 

13,666

 

 

 

100,506

 

 

 

169,491

 

 

 

80,180

 

 

 

64,039

 

 

 

27,682

 

 

 

29,883

 

 

 

5,931

 

 

 

491,378

 

Grade 5

 

 

 

 

 

277

 

 

 

1,371

 

 

 

 

 

 

23,351

 

 

 

15,687

 

 

 

729

 

 

 

 

 

 

41,415

 

Grade 6

 

 

 

 

 

 

 

 

 

 

 

7,319

 

 

 

182

 

 

 

534

 

 

 

 

 

 

 

 

 

8,035

 

Grade 7

 

 

 

 

 

 

 

 

 

 

 

122

 

 

 

 

 

 

290

 

 

 

236

 

 

 

 

 

 

648

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

2,736

 

 

 

25,624

 

 

 

74,957

 

 

 

7,805

 

 

 

4,725

 

 

 

7,456

 

 

 

20,438

 

 

 

 

 

 

143,741

 

Total

 

$

283,264

 

 

$

827,410

 

 

$

843,814

 

 

$

390,734

 

 

$

217,399

 

 

$

99,424

 

 

$

150,347

 

 

$

15,980

 

 

$

2,828,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

 

 

$

109

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture and Agriculture Real Estate (includes Farmland)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

1,424

 

 

$

668

 

 

$

1,020

 

 

$

149

 

 

$

189

 

 

$

285

 

 

$

9,334

 

 

$

 

 

$

13,069

 

Grade 2

 

 

 

 

 

248

 

 

 

60

 

 

 

99

 

 

 

 

 

 

703

 

 

 

 

 

 

 

 

 

1,110

 

Grade 3

 

 

111,732

 

 

 

136,370

 

 

 

195,650

 

 

 

91,013

 

 

 

53,071

 

 

 

114,853

 

 

 

135,023

 

 

 

107

 

 

 

837,819

 

Grade 4

 

 

9,426

 

 

 

28,468

 

 

 

15,968

 

 

 

26,932

 

 

 

4,403

 

 

 

7,956

 

 

 

22,138

 

 

 

403

 

 

 

115,694

 

Grade 5

 

 

1,513

 

 

 

57

 

 

 

263

 

 

 

273

 

 

 

 

 

 

1,693

 

 

 

 

 

 

 

 

 

3,799

 

Grade 6

 

 

 

 

 

 

 

 

2,879

 

 

 

76

 

 

 

 

 

 

1,180

 

 

 

 

 

 

 

 

 

4,135

 

Grade 7

 

 

 

 

 

 

 

 

1,643

 

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

1,670

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

17,467

 

 

 

2,064

 

 

 

3,464

 

 

 

2,052

 

 

 

15,330

 

 

 

2,457

 

 

 

17,231

 

 

 

 

 

 

60,065

 

Total

 

$

141,562

 

 

$

167,875

 

 

$

220,947

 

 

$

120,594

 

 

$

72,993

 

 

$

129,154

 

 

$

183,726

 

 

$

510

 

 

$

1,037,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

 

 

$

 

 

$

62

 

 

$

339

 

 

$

121

 

 

$

 

 

$

 

 

$

522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 Family (includes Home Equity) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

 

 

$

74

 

 

$

150

 

 

$

 

 

$

108

 

 

$

 

 

$

 

 

$

 

 

$

332

 

Grade 2

 

 

 

 

 

520

 

 

 

1,220

 

 

 

150

 

 

 

229

 

 

 

2,468

 

 

 

 

 

 

 

 

 

4,587

 

Grade 3

 

 

232,171

 

 

 

1,214,696

 

 

 

2,337,634

 

 

 

2,125,250

 

 

 

996,797

 

 

 

1,245,564

 

 

 

90,447

 

 

 

1,880

 

 

 

8,244,439

 

Grade 4

 

 

5,391

 

 

 

15,839

 

 

 

15,636

 

 

 

23,121

 

 

 

6,049

 

 

 

63,434

 

 

 

3,354

 

 

 

 

 

 

132,824

 

Grade 5

 

 

 

 

 

 

 

 

1,195

 

 

 

 

 

 

119

 

 

 

2,488

 

 

 

 

 

 

 

 

 

3,802

 

Grade 6

 

 

 

 

 

20

 

 

 

508

 

 

 

214

 

 

 

19

 

 

 

1,087

 

 

 

 

 

 

 

 

 

1,848

 

Grade 7

 

 

 

 

 

1,598

 

 

 

8,550

 

 

 

5,698

 

 

 

4,715

 

 

 

10,735

 

 

 

127

 

 

 

 

 

 

31,423

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

358

 

 

 

1,780

 

 

 

2,476

 

 

 

652

 

 

 

520

 

 

 

1,872

 

 

 

 

 

 

 

 

 

7,658

 

Total

 

$

237,920

 

 

$

1,234,527

 

 

$

2,367,369

 

 

$

2,155,085

 

 

$

1,008,556

 

 

$

1,327,648

 

 

$

93,928

 

 

$

1,880

 

 

$

8,426,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

44

 

 

$

719

 

 

$

28

 

 

$

33

 

 

$

70

 

 

$

 

 

$

 

 

$

894

 

 

 

 

 

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

 

$

750

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

750

 

Grade 2

 

 

 

 

 

 

 

 

1,099

 

 

 

 

 

 

447

 

 

 

2,126

 

 

 

 

 

 

 

 

 

3,672

 

Grade 3

 

 

138,227

 

 

 

432,631

 

 

 

949,365

 

 

 

744,603

 

 

 

431,915

 

 

 

1,163,658

 

 

 

52,323

 

 

 

2,786

 

 

 

3,915,508

 

Grade 4

 

 

6,410

 

 

 

93,937

 

 

 

281,422

 

 

 

230,332

 

 

 

242,150

 

 

 

699,644

 

 

 

15,056

 

 

 

 

 

 

1,568,951

 

Grade 5

 

 

 

 

 

190

 

 

 

7,142

 

 

 

5,472

 

 

 

18,209

 

 

 

87,917

 

 

 

855

 

 

 

 

 

 

119,785

 

Grade 6

 

 

 

 

 

597

 

 

 

2,039

 

 

 

1,487

 

 

 

15,845

 

 

 

81,440

 

 

 

 

 

 

 

 

 

101,408

 

Grade 7

 

 

 

 

 

2,451

 

 

 

511

 

 

 

574

 

 

 

1,644

 

 

 

2,445

 

 

 

50

 

 

 

 

 

 

7,675

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

2,183

 

 

 

45,824

 

 

 

68,714

 

 

 

41,362

 

 

 

17,130

 

 

 

68,593

 

 

 

329

 

 

 

 

 

 

244,135

 

Total

 

$

147,570

 

 

$

575,630

 

 

$

1,310,292

 

 

$

1,023,830

 

 

$

727,340

 

 

$

2,105,823

 

 

$

68,613

 

 

$

2,786

 

 

$

5,961,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

 

 

$

135

 

 

$

216

 

 

$

 

 

$

160

 

 

$

 

 

$

 

 

$

511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

32,263

 

 

$

13,062

 

 

$

8,512

 

 

$

4,247

 

 

$

2,440

 

 

$

4,755

 

 

$

40,230

 

 

$

162

 

 

$

105,671

 

Grade 2

 

 

1,795

 

 

 

3,490

 

 

 

7,740

 

 

 

330

 

 

 

118

 

 

 

3,381

 

 

 

6,405

 

 

 

 

 

 

23,259

 

Grade 3

 

 

238,629

 

 

 

210,865

 

 

 

227,348

 

 

 

143,904

 

 

 

58,515

 

 

 

180,042

 

 

 

1,073,239

 

 

 

2,412

 

 

 

2,134,954

 

Grade 4

 

 

29,512

 

 

 

40,041

 

 

 

31,376

 

 

 

14,748

 

 

 

8,787

 

 

 

79,560

 

 

 

74,197

 

 

 

1,124

 

 

 

279,345

 

Grade 5

 

 

100

 

 

 

54

 

 

 

21,336

 

 

 

185

 

 

 

1,445

 

 

 

384

 

 

 

7,562

 

 

 

 

 

 

31,066

 

Grade 6

 

 

402

 

 

 

293

 

 

 

3,755

 

 

 

568

 

 

 

279

 

 

 

26

 

 

 

3,945

 

 

 

 

 

 

9,268

 

Grade 7

 

 

69

 

 

 

3,869

 

 

 

884

 

 

 

5,281

 

 

 

1,245

 

 

 

1,291

 

 

 

715

 

 

 

289

 

 

 

13,643

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

1,145

 

 

 

2,755

 

 

 

13,944

 

 

 

2,444

 

 

 

205

 

 

 

2,285

 

 

 

22,550

 

 

 

1,737

 

 

 

47,065

 

Total

 

$

303,915

 

 

$

274,429

 

 

$

314,895

 

 

$

171,707

 

 

$

73,034

 

 

$

271,724

 

 

$

1,228,843

 

 

$

5,724

 

 

$

2,644,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

70

 

 

$

728

 

 

$

1,054

 

 

$

929

 

 

$

126

 

 

$

1,629

 

 

$

 

 

$

4,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

9,742

 

 

$

10,637

 

 

$

4,730

 

 

$

2,726

 

 

$

1,759

 

 

$

4,860

 

 

$

2,588

 

 

$

 

 

$

37,042

 

Grade 2

 

 

6,505

 

 

 

12,721

 

 

 

14,216

 

 

 

41

 

 

 

 

 

 

1,819

 

 

 

7

 

 

 

 

 

 

35,309

 

Grade 3

 

 

38,092

 

 

 

38,425

 

 

 

36,725

 

 

 

24,044

 

 

 

10,670

 

 

 

16,081

 

 

 

80,826

 

 

 

174

 

 

 

245,037

 

Grade 4

 

 

 

 

 

1,658

 

 

 

252

 

 

 

1,062

 

 

 

15,118

 

 

 

2,179

 

 

 

2,823

 

 

 

 

 

 

23,092

 

Grade 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 7

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

45

 

 

 

 

 

 

67

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

5

 

 

 

12

 

 

 

16

 

 

 

 

 

 

64

 

Total

 

$

54,339

 

 

$

63,449

 

 

$

55,923

 

 

$

27,904

 

 

$

27,552

 

 

$

24,965

 

 

$

86,305

 

 

$

174

 

 

$

340,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

2,649

 

 

$

25

 

 

$

54

 

 

$

24

 

 

$

53

 

 

$

279

 

 

$

62

 

 

$

 

 

$

3,146

 

 

 

 

 

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

 

 

1,081,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,081,403

 

Grade 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,081,403

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

1,081,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

44,179

 

 

$

24,441

 

 

$

14,412

 

 

$

7,122

 

 

$

4,496

 

 

$

9,900

 

 

$

52,152

 

 

$

162

 

 

$

156,864

 

Grade 2

 

 

8,300

 

 

 

18,075

 

 

 

24,498

 

 

 

620

 

 

 

794

 

 

 

10,511

 

 

 

6,412

 

 

 

 

 

 

69,210

 

Grade 3

 

 

2,107,116

 

 

 

2,732,894

 

 

 

4,344,554

 

 

 

3,424,122

 

 

 

1,676,070

 

 

 

2,767,959

 

 

 

1,530,919

 

 

 

17,408

 

 

 

18,601,042

 

Grade 4

 

 

64,405

 

 

 

280,449

 

 

 

514,145

 

 

 

376,375

 

 

 

340,546

 

 

 

880,455

 

 

 

147,451

 

 

 

7,458

 

 

 

2,611,284

 

Grade 5

 

 

1,613

 

 

 

578

 

 

 

31,307

 

 

 

5,930

 

 

 

43,124

 

 

 

108,169

 

 

 

9,146

 

 

 

 

 

 

199,867

 

Grade 6

 

 

402

 

 

 

910

 

 

 

9,181

 

 

 

9,664

 

 

 

16,325

 

 

 

84,267

 

 

 

3,945

 

 

 

 

 

 

124,694

 

Grade 7

 

 

69

 

 

 

7,926

 

 

 

11,588

 

 

 

11,675

 

 

 

7,604

 

 

 

14,802

 

 

 

1,173

 

 

 

289

 

 

 

55,126

 

Grade 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCD Loans

 

 

23,889

 

 

 

78,047

 

 

 

163,555

 

 

 

54,346

 

 

 

37,915

 

 

 

82,675

 

 

 

60,564

 

 

 

1,737

 

 

 

502,728

 

Total

 

$

2,249,973

 

 

$

3,143,320

 

 

$

5,113,240

 

 

$

3,889,854

 

 

$

2,126,874

 

 

$

3,958,738

 

 

$

1,811,762

 

 

$

27,054

 

 

$

22,320,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross write-offs

 

$

2,649

 

 

$

139

 

 

$

1,745

 

 

$

1,384

 

 

$

1,354

 

 

$

756

 

 

$

1,691

 

 

$

 

 

$

9,718

 

 

(1)
Includes $10.0 million of residential mortgage loans held for sale at June 30, 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 and six months ended June 30, 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 March 31, 2024

 

$

82,158

 

 

$

12,627

 

 

$

79,664

 

 

$

87,213

 

 

$

61,616

 

 

$

6,941

 

 

$

330,219

 

Initial allowance on loans purchased with credit deterioration

 

 

942

 

 

 

14,309

 

 

 

344

 

 

 

4,306

 

 

 

6,176

 

 

 

1

 

 

 

26,078

 

Provision for credit losses on loans

 

 

(6,215

)

 

 

2,757

 

 

 

1,106

 

 

 

3,828

 

 

 

5,097

 

 

 

1,350

 

 

 

7,923

 

Charge-offs

 

 

(109

)

 

 

(400

)

 

 

(433

)

 

 

(511

)

 

 

(3,176

)

 

 

(1,488

)

 

 

(6,117

)

Recoveries

 

 

 

 

 

186

 

 

 

8

 

 

 

892

 

 

 

399

 

 

 

264

 

 

 

1,749

 

Net (charge-offs) recoveries

 

 

(109

)

 

 

(214

)

 

 

(425

)

 

 

381

 

 

 

(2,777

)

 

 

(1,224

)

 

 

(4,368

)

Balance June 30, 2024

 

$

76,776

 

 

$

29,479

 

 

$

80,689

 

 

$

95,728

 

 

$

70,112

 

 

$

7,068

 

 

$

359,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2023

 

$

87,775

 

 

$

11,380

 

 

$

77,652

 

 

$

88,664

 

 

$

59,832

 

 

$

7,059

 

 

$

332,362

 

Initial allowance on loans purchased with credit deterioration

 

 

942

 

 

 

14,309

 

 

 

344

 

 

 

4,306

 

 

 

6,176

 

 

 

1

 

 

 

26,078

 

Provision for credit losses

 

 

(11,834

)

 

 

4,027

 

 

 

3,575

 

 

 

2,360

 

 

 

7,164

 

 

 

2,631

 

 

 

7,923

 

Charge-offs

 

 

(109

)

 

 

(522

)

 

 

(894

)

 

 

(511

)

 

 

(4,536

)

 

 

(3,146

)

 

 

(9,718

)

Recoveries

 

 

2

 

 

 

285

 

 

 

12

 

 

 

909

 

 

 

1,476

 

 

 

523

 

 

 

3,207

 

Net (charge-offs) recoveries

 

 

(107

)

 

 

(237

)

 

 

(882

)

 

 

398

 

 

 

(3,060

)

 

 

(2,623

)

 

 

(6,511

)

Balance June 30, 2024

 

$

76,776

 

 

$

29,479

 

 

$

80,689

 

 

$

95,728

 

 

$

70,112

 

 

$

7,068

 

 

$

359,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2023

 

$

80,561

 

 

$

8,061

 

 

$

62,538

 

 

$

67,972

 

 

$

57,296

 

 

$

5,763

 

 

$

282,191

 

Initial allowance on loans purchased with credit deterioration

 

 

15,237

 

 

 

2,914

 

 

 

1,590

 

 

 

21,002

 

 

 

26,332

 

 

 

24

 

 

 

67,099

 

Provision for credit losses on loans

 

 

(3,890

)

 

 

201

 

 

 

3,524

 

 

 

12,748

 

 

 

(1,498

)

 

 

899

 

 

 

11,984

 

Charge-offs

 

 

(77

)

 

 

(113

)

 

 

(36

)

 

 

(14,975

)

 

 

(341

)

 

 

(1,291

)

 

 

(16,833

)

Recoveries

 

 

27

 

 

 

191

 

 

 

106

 

 

 

18

 

 

 

181

 

 

 

245

 

 

 

768

 

Net (charge-offs) recoveries

 

 

(50

)

 

 

78

 

 

 

70

 

 

 

(14,957

)

 

 

(160

)

 

 

(1,046

)

 

 

(16,065

)

Balance June 30, 2023

 

$

91,858

 

 

$

11,254

 

 

$

67,722

 

 

$

86,765

 

 

$

81,970

 

 

$

5,640

 

 

$

345,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2022

 

$

78,853

 

 

$

7,699

 

 

$

60,795

 

 

$

66,272

 

 

$

62,319

 

 

$

5,638

 

 

$

281,576

 

Initial allowance on loans purchased with credit deterioration

 

 

15,237

 

 

 

2,914

 

 

 

1,590

 

 

 

21,002

 

 

 

26,332

 

 

 

24

 

 

 

67,099

 

Provision for credit losses

 

 

(2,195

)

 

 

557

 

 

 

5,127

 

 

 

14,447

 

 

 

(7,993

)

 

 

2,041

 

 

 

11,984

 

Charge-offs

 

 

(77

)

 

 

(113

)

 

 

(101

)

 

 

(14,975

)

 

 

(1,242

)

 

 

(2,516

)

 

 

(19,024

)

Recoveries

 

 

40

 

 

 

197

 

 

 

311

 

 

 

19

 

 

 

2,554

 

 

 

453

 

 

 

3,574

 

Net charge-offs

 

 

(37

)

 

 

84

 

 

 

210

 

 

 

(14,956

)

 

 

1,312

 

 

 

(2,063

)

 

 

(15,450

)

Balance June 30, 2023

 

$

91,858

 

 

$

11,254

 

 

$

67,722

 

 

$

86,765

 

 

$

81,970

 

 

$

5,640

 

 

$

345,209

 

Rollforward of Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The following table represents a rollforward of the allowance for credit losses on off-balance sheet credit exposures for the three and six months ended June 30, 2024 and 2023.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Balance at beginning of period

 

$

36,503

 

 

$

29,947

 

 

$

36,503

 

 

$

29,947

 

Provision for credit losses on off-balance sheet credit exposures

 

 

1,143

 

 

 

6,556

 

 

 

1,143

 

 

 

6,556

 

Balance at end of period

 

$

37,646

 

 

$

36,503

 

 

$

37,646

 

 

$

36,503

 

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 and six months ended June 30, 2024 and 2023, presented by category of loan and type of modification.

 

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate Reduction

 

 

Total

 

 

Percentage of Total Loans Held for Investment

 

 

 

(Dollars in thousands)

 

 

 

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

2,489

 

 

$

 

 

$

2,489

 

 

 

0.01

%

Agriculture

 

 

 

 

 

650

 

 

 

 

 

 

650

 

 

 

0.00

%

Total

 

$

 

 

$

3,139

 

 

$

 

 

$

3,139

 

 

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

2,902

 

 

$

 

 

$

2,902

 

 

 

0.02

%

Agriculture

 

 

 

 

 

11,650

 

 

 

 

 

 

11,650

 

 

 

0.05

%

Total

 

$

 

 

$

14,552

 

 

$

 

 

$

14,552

 

 

 

0.07

%

 

 

 

Payment Delay

 

 

Term Extension

 

 

Interest Rate Reduction

 

 

Total

 

 

Percentage of Total Loans Held for Investment

 

 

 

(Dollars in thousands)

 

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

 

 

 

$

304

 

 

$

304

 

 

 

0.00

%

Construction, land development and other land loans

 

 

 

 

 

1,175

 

 

 

 

 

 

1,175

 

 

 

0.01

%

Commercial real estate (includes multi-family residential)

 

 

1,294

 

 

 

 

 

 

 

 

 

1,294

 

 

 

0.01

%

Total

 

$

1,294

 

 

$

1,175

 

 

$

304

 

 

$

2,773

 

 

 

0.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

 

 

$

304

 

 

$

304

 

 

 

0.00

%

Construction, land development and other land loans

 

 

 

 

 

5,408

 

 

 

 

 

 

5,408

 

 

 

0.03

%

Commercial real estate (includes multi-family residential)

 

 

1,294

 

 

 

 

 

 

 

 

 

1,294

 

 

 

0.01

%

Total

 

$

1,294

 

 

$

5,408

 

 

$

304

 

 

$

7,006

 

 

 

0.04

%

Schedule of Loan Modifications

The following table describes the modifications made to the loans presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2024 and 2023.

 

Term Extension

Loan Type

 

Three Months Ended June 30, 2024

 

Six Months Ended June 30, 2024

Commercial and industrial

 

Short-term extensions

 

Short-term extensions; modification to a 7 year term

Agriculture

 

Modified to a 2 year term

 

Modified to a 2 year term

 

Payment Delay

Loan Type

 

Three Months Ended June 30, 2023

 

Six Months Ended June 30, 2023

Commercial real estate (includes multi-family residential)

 

Short-term principal deferral

 

Short-term principal deferral

 

 

 

 

 

Term Extension

Loan Type

 

Three Months Ended June 30, 2023

 

Six Months Ended June 30, 2023

Construction, land development and other land loans

 

Short-term extension

 

Short-term extension

 

 

 

 

 

Interest Rate Reduction

Loan Type

 

Three Months Ended June 30, 2023

 

Six Months Ended June 30, 2023

Commercial and industrial

 

Reduced contractual interest rate

 

Reduced contractual interest rate