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Loans and Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Loans and Allowance for Credit Losses | Note 4. Loans and Allowance for Credit Losses The Company generally makes loans in its market areas of south and central Mississippi; southern and central Alabama; northwest, central and south Louisiana; the northern, central and panhandle regions of Florida; and certain areas of east and northeast Texas, including Houston, Beaumont and Dallas; and Nashville, Tennessee. During the year ended December 31, 2020, the Company sold $497 million of its energy loan portfolio for net proceeds of approximately $254.4 million. The primary objective of the sale was to reduce risk in the loan portfolio by accelerating the disposition of existing problem credits that were further complicated by the economic deterioration that stemmed from the COVID-19 pandemic. Loans, net of unearned income does not include accrued interest, which is reflected in the accrued interest line item in the Consolidated Balance Sheets, totaling $76.2 million and $67.7 million at December 31, 2020 and 2019, respectively. The following table presents loans, net of unearned income, by portfolio class at December 31, 2020 and 2019:
(in thousands) |  | 2020 |  |  | 2019 |
Commercial non-real estate |  | $ |  | 9,986,983 |  |  | $ |  | 9,166,947 |
Commercial real estate - owner occupied |  |  |  | 2,857,445 |  |  |  |  | 2,738,460 |
Total commercial and industrial |  |  |  | 12,844,428 |  |  |  |  | 11,905,407 |
Commercial real estate - income producing |  |  |  | 3,357,939 |  |  |  |  | 2,994,448 |
Construction and land development |  |  |  | 1,065,057 |  |  |  |  | 1,157,451 |
Residential mortgages |  |  |  | 2,665,212 |  |  |  |  | 2,990,631 |
Consumer |  |  |  | 1,857,295 |  |  |  |  | 2,164,818 |
Total loans |  | $ |  | 21,789,931 |  |  | $ |  | 21,212,755 |
The Bank makes loans in the normal course of business to directors and executive officers of the Company and the Bank and to their associates. Loans to such related parties are made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk of collectability when originated. Balances of loans to the Company’s directors, executive officers and their associates at December 31, 2020 and 2019 were approximately $11.6 million and $13.4 million, respectively. Related party loan activity in 2020 reflect new loans of $4.1 million, repayments of $6.1 million and $0.2 million of loans to newly added executive officers. The Bank has a line of credit with the Federal Home Loan Bank of Dallas that is secured by blanket pledges of certain qualifying loan types. The Bank had borrowings on this line of $1.1 billion and $2.0 billion at December 31, 2020 and 2019, respectively. The following schedules show activity in the allowance for credit losses by portfolio class for the years ended December 31, 2020 and 2019, as well as the corresponding recorded investment in loans at December 31, 2020 and 2019. Effective January 1, 2020, the Company adopted the provisions of ASC 326 (CECL) using a modified retrospective basis. The difference between the December 31, 2019 incurred allowance and the CECL allowance is reflected as a cumulative effect of change in accounting principle in the table below. For further discussion of the day one impact of the CECL adoption, refer to Note 1 – Summary of Significant Accounting Policies and Recent Accounting Pronouncements.
|  | Commercial Non-Real Estate |  |  | Commercial Real Estate- Owner Occupied |  |  | Total Commercial and Industrial |  |  | Commercial Real Estate- Income Producing |  |  | Construction and Land Development |  |  | Residential Mortgages |  |  | Consumer |  |  | Total |
(in thousands) |  | Year Ended December 31, 2020 |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ |  | 106,432 |  |  | $ |  | 10,977 |  |  | $ |  | 117,409 |  |  | $ |  | 20,869 |  |  | $ |  | 9,350 |  |  | $ |  | 20,331 |  |  | $ |  | 23,292 |  |  | $ |  | 191,251 |
Cumulative effect of change in accounting principle |  |  |  | (244 | ) |  |  |  | 14,877 |  |  |  |  | 14,633 |  |  |  |  | 7,287 |  |  |  |  | 7,478 |  |  |  |  | 12,921 |  |  |  |  | 7,092 |  |  |  |  | 49,411 |
Charge-offs |  |  |  | (387,172 | ) |  |  |  | (1,828 | ) |  |  |  | (389,000 | ) |  |  |  | (2,512 | ) |  |  |  | (400 | ) |  |  |  | (326 | ) |  |  |  | (17,219 | ) |  |  |  | (409,457 | )
Recoveries |  |  |  | 6,032 |  |  |  |  | 763 |  |  |  |  | 6,795 |  |  |  |  | 46 |  |  |  |  | 846 |  |  |  |  | 1,400 |  |  |  |  | 5,584 |  |  |  |  | 14,671 |
Net provision for loan losses |  |  |  | 424,645 |  |  |  |  | 44,345 |  |  |  |  | 468,990 |  |  |  |  | 83,784 |  |  |  |  | 9,188 |  |  |  |  | 14,516 |  |  |  |  | 27,823 |  |  |  |  | 604,301 |
Ending balance - allowance for loan losses |  | $ |  | 149,693 |  |  | $ |  | 69,134 |  |  | $ |  | 218,827 |  |  | $ |  | 109,474 |  |  | $ |  | 26,462 |  |  | $ |  | 48,842 |  |  | $ |  | 46,572 |  |  | $ |  | 450,177 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ |  | 3,974 |  |  | $ |  | — |  |  | $ |  | 3,974 |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 3,974 |
Cumulative effect of change in accounting principle |  |  |  | 5,772 |  |  |  |  | 288 |  |  |  |  | 6,060 |  |  |  |  | 449 |  |  |  |  | 15,658 |  |  |  |  | 17 |  |  |  |  | 5,146 |  |  |  |  | 27,330 |
Provision for losses on unfunded commitments |  |  |  | (5,217 | ) |  |  |  | 93 |  |  |  |  | (5,124 | ) |  |  |  | 650 |  |  |  |  | 7,036 |  |  |  |  | 2 |  |  |  |  | (3,961 | ) |  |  |  | (1,397 | )
Ending balance - reserve for unfunded lending commitments |  | $ |  | 4,529 |  |  | $ |  | 381 |  |  | $ |  | 4,910 |  |  | $ |  | 1,099 |  |  | $ |  | 22,694 |  |  | $ |  | 19 |  |  | $ |  | 1,185 |  |  | $ |  | 29,907 |
Total allowance for credit losses |  | $ |  | 154,222 |  |  | $ |  | 69,515 |  |  | $ |  | 223,737 |  |  | $ |  | 110,573 |  |  | $ |  | 49,156 |  |  | $ |  | 48,861 |  |  | $ |  | 47,757 |  |  | $ |  | 480,084 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated |  | $ |  | 11,517 |  |  | $ |  | 1,236 |  |  | $ |  | 12,753 |  |  | $ |  | 44 |  |  | $ |  | 22 |  |  | $ |  | 546 |  |  | $ |  | 515 |  |  | $ |  | 13,880 |
Collectively evaluated |  |  |  | 138,176 |  |  |  |  | 67,898 |  |  |  |  | 206,074 |  |  |  |  | 109,430 |  |  |  |  | 26,440 |  |  |  |  | 48,296 |  |  |  |  | 46,057 |  |  |  |  | 436,297 |
Allowance for loan losses |  | $ |  | 149,693 |  |  | $ |  | 69,134 |  |  | $ |  | 218,827 |  |  | $ |  | 109,474 |  |  | $ |  | 26,462 |  |  | $ |  | 48,842 |  |  | $ |  | 46,572 |  |  | $ |  | 450,177 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated |  | $ |  | 241 |  |  | $ |  | — |  |  | $ |  | 241 |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 241 |
Collectively evaluated |  |  |  | 4,288 |  |  |  |  | 381 |  |  |  |  | 4,669 |  |  |  |  | 1,099 |  |  |  |  | 22,694 |  |  |  |  | 19 |  |  |  |  | 1,185 |  |  |  |  | 29,666 |
Reserve for unfunded lending commitments: |  | $ |  | 4,529 |  |  | $ |  | 381 |  |  | $ |  | 4,910 |  |  | $ |  | 1,099 |  |  | $ |  | 22,694 |  |  | $ |  | 19 |  |  | $ |  | 1,185 |  |  | $ |  | 29,907 |
Total allowance for credit losses |  | $ |  | 154,222 |  |  | $ |  | 69,515 |  |  | $ |  | 223,737 |  |  | $ |  | 110,573 |  |  | $ |  | 49,156 |  |  | $ |  | 48,861 |  |  | $ |  | 47,757 |  |  | $ |  | 480,084 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ |  | 43,775 |  |  | $ |  | 10,206 |  |  | $ |  | 53,981 |  |  | $ |  | 4,542 |  |  | $ |  | 1,250 |  |  | $ |  | 5,850 |  |  | $ |  | 2,521 |  |  | $ |  | 68,144 |
Collectively evaluated for impairment |  |  |  | 9,943,208 |  |  |  |  | 2,847,239 |  |  |  |  | 12,790,447 |  |  |  |  | 3,353,397 |  |  |  |  | 1,063,807 |  |  |  |  | 2,659,362 |  |  |  |  | 1,854,774 |  |  |  |  | 21,721,787 |
Total loans |  | $ |  | 9,986,983 |  |  | $ |  | 2,857,445 |  |  | $ |  | 12,844,428 |  |  | $ |  | 3,357,939 |  |  | $ |  | 1,065,057 |  |  | $ |  | 2,665,212 |  |  | $ |  | 1,857,295 |  |  | $ |  | 21,789,931 |
|  | Commercial Non-Real Estate |  | Commercial Real Estate- Owner Occupied |  | Total Commercial and Industrial |  | Commercial Real Estate- Income Producing |  | Construction and Land Development |  | Residential Mortgages |  | Consumer |  | Total
(in thousands) |  | Year Ended December 31, 2019
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 97,752 |  | $ | 13,757 |  | $ | 111,509 |  | $ | 17,638 |  | $ | 15,647 |  | $ | 23,782 |  | $ | 25,938 |  | $ | 194,514
Charge-offs |  |  | (39,600) |  |  | (137) |  |  | (39,737) |  |  | (32) |  |  | (7) |  |  | (846) |  |  | (18,455) |  |  | (59,077)
Recoveries |  |  | 6,940 |  |  | 306 |  |  | 7,246 |  |  | 569 |  |  | 140 |  |  | 480 |  |  | 3,645 |  |  | 12,080
Net provision for loan losses |  |  | 41,340 |  |  | (2,949) |  |  | 38,391 |  |  | 2,694 |  |  | (6,430) |  |  | (3,085) |  |  | 12,164 |  |  | 43,734
Ending balance - allowance for loan losses |  | $ | 106,432 |  | $ | 10,977 |  | $ | 117,409 |  | $ | 20,869 |  | $ | 9,350 |  | $ | 20,331 |  | $ | 23,292 |  | $ | 191,251
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —
Provision for losses on unfunded commitments |  |  | 3,974 |  |  | — |  |  | 3,974 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,974
Ending balance - reserve for unfunded lending commitments |  | $ | 3,974 |  | $ | — |  | $ | 3,974 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 3,974
Total allowance for credit losses |  | $ | 110,406 |  | $ | 10,977 |  | $ | 121,383 |  | $ | 20,869 |  | $ | 9,350 |  | $ | 20,331 |  | $ | 23,292 |  | $ | 195,225
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 21,733 |  | $ | 104 |  | $ | 21,837 |  | $ | 18 |  | $ | 21 |  | $ | 217 |  | $ | 292 |  | $ | 22,385
Amounts related to purchased credit impaired loans |  |  | 164 |  |  | 169 |  |  | 333 |  |  | 39 |  |  | 136 |  |  | 7,474 |  |  | 275 |  |  | 8,257
Collectively evaluated for impairment |  |  | 84,535 |  |  | 10,704 |  |  | 95,239 |  |  | 20,812 |  |  | 9,193 |  |  | 12,640 |  |  | 22,725 |  |  | 160,609
Allowance for loan losses |  | $ | 106,432 |  | $ | 10,977 |  | $ | 117,409 |  | $ | 20,869 |  | $ | 9,350 |  | $ | 20,331 |  | $ | 23,292 |  | $ | 191,251
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,974 |  | $ | — |  | $ | 3,974 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 3,974
Total allowance for credit losses |  | $ | 110,406 |  | $ | 10,977 |  | $ | 121,383 |  | $ | 20,869 |  | $ | 9,350 |  | $ | 20,331 |  | $ | 23,292 |  | $ | 195,225
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 232,438 |  | $ | 4,381 |  | $ | 236,819 |  | $ | 1,898 |  | $ | 277 |  | $ | 5,174 |  | $ | 1,483 |  | $ | 245,651
Purchased credit impaired loans |  |  | 31,073 |  |  | 36,200 |  |  | 67,273 |  |  | 35,353 |  |  | 20,516 |  |  | 86,757 |  |  | 5,346 |  |  | 215,245
Collectively evaluated for impairment |  |  | 8,903,436 |  |  | 2,697,879 |  |  | 11,601,315 |  |  | 2,957,197 |  |  | 1,136,658 |  |  | 2,898,700 |  |  | 2,157,989 |  |  | 20,751,859
Total loans |  | $ | 9,166,947 |  | $ | 2,738,460 |  | $ | 11,905,407 |  | $ | 2,994,448 |  | $ | 1,157,451 |  | $ | 2,990,631 |  | $ | 2,164,818 |  | $ | 21,212,755
The calculation of the allowance for credit losses under CECL is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated. The increase in the allowance for credit losses at December 31, 2020 as compared to December 31, 2019 reflects both the $76.7 million cumulative effect adjustment recorded upon adoption of CECL, and the impact of the economic shutdown in response to the COVID-19 pandemic and the sustained volatility of oil prices. The allowance for credit losses is developed using multiple Moody’s macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period. These forecasts are anchored on a baseline forecast scenario, which Moody’s defines as the “most likely outcome” based on current conditions and its view of where the economy is headed. The baseline scenario is positioned at the 50th percentile of possible outcomes. In arriving at the allowance for credit losses at December 31, 2020, the Company weighted the baseline economic forecast at 65%. Following the sharp recession seen in the first half of 2020 and modest growth in the latter half, the baseline scenario assumes a continued gradual recovery in the early part 2021, with the most meaningful growth occurring after a vaccine for the coronavirus becomes widely available in the first quarter of 2021. To incorporate reasonably possible alternative outcomes, the downside slower near-term growth scenario S-2 was weighted at 25% and the recessionary scenario S-3 was weighted at 10%. The S-2 scenario reflects reasonably possible subdued growth compared to the baseline, with a higher incidence of viral infection and death and slower rollout of the coronavirus vaccine, prompting the closure of or delayed reopening of some nonessential businesses. The S-3 scenario reflects reasonably possible recurrence of recessionary conditions, with a surge in the incidence of infection and death and longer delay in the vaccination rollout, necessitating heightened restrictions on travel and business. Neither the S-2 nor the S-3 scenario assumes widespread economic shutdown. The activity in the allowance for credit losses for the year ended December 31, 2020 also reflects the impact the sale of $497 million of energy-related loans. The write-down to loans’ observable market values plus cost to sell resulted in charge-offs of $242.6 million and a reserve release of $82.5 million, for a net provision for credit losses impact of $160.1 million, which is mostly reflected in the commercial non-real estate portfolio. Nonaccrual Loans and Loans Modified in Troubled Debt Restructurings The following table presents total nonaccrual loans and those without an allowance for loan loss, by portfolio class. Prior to the adoption of CECL, purchased credit impaired loans accounted for in pools with an accretable yield were considered to be performing and are therefore excluded. Such loans totaled $17.5 million at December 31, 2019.
|  | December 31, |
|  | 2020 |  |  |  | 2019 |
(in thousands) |  |  | Total nonaccrual |  |  |  | Nonaccrual without allowance for loan loss |  |  |  | Total nonaccrual |  |  |  | Nonaccrual without allowance for loan loss |
Commercial non-real estate |  | $ |  | 52,836 |  |  | $ |  | 15,268 |  |  | $ |  | 178,678 |  |  | $ |  | 97,700 |
Commercial real estate - owner occupied |  |  |  | 13,856 |  |  |  |  | 7,038 |  |  |  |  | 7,708 |  |  |  |  | 2,458 |
Total commercial and industrial |  |  |  | 66,692 |  |  |  |  | 22,306 |  |  |  |  | 186,386 |  |  |  |  | 100,158 |
Commercial real estate - income producing |  |  |  | 6,743 |  |  |  |  | — |  |  |  |  | 2,594 |  |  |  |  | — |
Construction and land development |  |  |  | 2,486 |  |  |  |  | 1,116 |  |  |  |  | 1,217 |  |  |  |  | — |
Residential mortgages |  |  |  | 40,573 |  |  |  |  | 1,705 |  |  |  |  | 39,262 |  |  |  |  | 3,383 |
Consumer |  |  |  | 23,385 |  |  |  |  | — |  |  |  |  | 16,374 |  |  |  |  | 351 |
Total loans |  | $ |  | 139,879 |  |  | $ |  | 25,127 |  |  | $ |  | 245,833 |  |  | $ |  | 103,892 |
Nonaccrual loans include nonaccruing loans modified in troubled debt restructurings (TDRs) of $21.6 million and $132.5 million, at December 31, 2020 and 2019, respectively. Total TDRs, both accruing and nonaccruing, were $25.8 million at December 31, 2020 and $193.7 million at December 31, 2019. The table below presents detail on loans modified in TDRs during the years ended December 31, 2020, 2019 and 2018 by portfolio segment. All such loans are individually evaluated for credit loss.
|  | Years Ended |
($ in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
|  |  |  |  |  | Outstanding Recorded Investment |  |  |  |  |  |  | Outstanding Recorded Investment |  |  |  |  |  |  | Outstanding Recorded Investment |
Troubled Debt Restructurings: |  | Number of Contracts |  |  | Pre- Modification |  |  | Post- Modification |  |  | Number of Contracts |  |  | Pre- Modification |  |  | Post- Modification |  |  | Number of Contracts |  |  | Pre- Modification |  |  | Post- Modification |
Commercial non-real estate |  |  | 3 |  |  | $ |  | 745 |  |  | $ |  | 745 |  |  |  | 13 |  |  | $ |  | 64,051 |  |  | $ |  | 57,240 |  |  |  | 29 |  |  | $ |  | 85,306 |  |  | $ |  | 85,306 |
Commercial real estate - owner occupied |  |  | 1 |  |  |  |  | 297 |  |  |  |  | 297 |  |  |  | 1 |  |  |  |  | 167 |  |  |  |  | 167 |  |  |  | 2 |  |  |  |  | 6,138 |  |  |  |  | 6,138 |
Total commercial and industrial |  |  | 4 |  |  |  |  | 1,042 |  |  |  |  | 1,042 |  |  |  | 14 |  |  |  |  | 64,218 |  |  |  |  | 57,407 |  |  |  | 31 |  |  |  |  | 91,444 |  |  |  |  | 91,444 |
Commercial real estate - income producing |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  | 1 |  |  |  |  | 123 |  |  |  |  | 123 |  |  |  | 1 |  |  |  |  | 1,564 |  |  |  |  | 1,564 |
Construction and land development |  |  | 1 |  |  |  |  | 15 |  |  |  |  | 15 |  |  |  | 3 |  |  |  |  | 323 |  |  |  |  | 323 |  |  |  | — |  |  |  |  | — |  |  |  |  | — |
Residential mortgages |  |  | 15 |  |  |  |  | 3,424 |  |  |  |  | 3,424 |  |  |  | 21 |  |  |  |  | 3,286 |  |  |  |  | 3,286 |  |  |  | 14 |  |  |  |  | 1,297 |  |  |  |  | 1,297 |
Consumer |  |  | 6 |  |  |  |  | 89 |  |  |  |  | 89 |  |  |  | 10 |  |  |  |  | 168 |  |  |  |  | 168 |  |  |  | 10 |  |  |  |  | 455 |  |  |  |  | 455 |
Total loans |  |  | 26 |  |  | $ |  | 4,570 |  |  | $ |  | 4,570 |  |  |  | 49 |  |  | $ |  | 68,118 |  |  | $ |  | 61,307 |  |  |  | 56 |  |  | $ |  | 94,760 |  |  | $ |  | 94,760 |
The TDRs modified during the year ended December 31, 2020 reflected in the table above include $1.0 million of loans with extended amortization terms or other payment concessions, $1.1 million with reduced interest rates, $0.4 million of loans with significant covenant waivers, and $2.1 million with other modifications. The TDRs modified during the year ended December 31, 2019 include $18.7 million of loans with extended amortization terms or other payment concessions, $41.3 million of loans with significant covenant waivers, and $8.1 million with other modifications. In addition, the Company received approximately $6.8 million of equity securities of one commercial non-real estate borrower in satisfaction of a portion of its debt. The TDRs modified during the year ended December 31, 2018 include $50.8 million of loans with extended terms or other payment concessions, $14.6 million of loans with significant covenant waivers, and $29.4 million of other modifications. At December 31, 2020 and 2019, the Company had unfunded commitments of approximately $4.6 million and $2.4 million, respectively, to borrowers whose loan terms had been modified in TDRs. During the year ended December 31, 2020, loans defaulted upon that had been modified in a TDR in the preceding twelve months were as follows: two commercial non real estate loans totaling $13.4 million, two residential mortgage loans totaling $0.8 million and one consumer loan totaling less than $0.1 million. There were no such defaults occurred during the year ended December 31, 2019. Of the TDRs modified during the year ended December 31, 2018, one residential mortgage totaling $0.2 million, one owner-occupied commercial real estate loan totaling $1.8 million and one consumer loan totaling less than $ 0.1 million defaulted within twelve months of the modification. The TDR disclosures above do not include loans eligible for exclusion from TDR assessment under Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Eligible modification must be (1) related to COVID-19, (2) executed on a loan that was not more than 30 days past due as of December 31, 2019 and (3) executed between March 1, 2020 and the earlier of 60 days after the date of the termination of the national emergency or December 31, 2020. This exclusion relief was extended to January 1, 2022 by the Consolidated Appropriations Act, 2021. At December 31, 2020, there were 176 loans totaling $630.6 million with active short-term payment deferrals of principal, interest or both, or other qualifying CARES Act modifications. These loans are reported in the aging analysis that follows based on the modified terms Prior to the adoption of CECL, the Company accounted for impaired loans as prescribed by ASC 310. The following provides detail regarding the Company’s impaired loans at and for the year ended December 31, 2019. Interest income recognized represents interest on accruing loans modified in a TDR.
|  | December 31, 2019 |
(in thousands) |  | Recorded Investment Without an Allowance |  |  | Recorded Investment With an Allowance |  |  | Unpaid Principle Balance |  |  |  |  | Related Allowance |  |  |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
Commercial non-real estate |  | $ |  | 134,191 |  |  | $ |  | 98,247 |  |  | $ |  | 270,078 |  |  |  |  | $ |  | 21,733 |  |  |  |  | $ |  | 223,500 |  |  | $ |  | 4,917 |
Commercial real estate - owner occupied |  |  |  | 2,665 |  |  |  |  | 1,716 |  |  |  |  | 7,793 |  |  |  |  |  |  | 104 |  |  |  |  |  |  | 14,719 |  |  |  |  | 196 |
Total commercial and industrial |  |  |  | 136,856 |  |  |  |  | 99,963 |  |  |  |  | 277,871 |  |  |  |  |  |  | 21,837 |  |  |  |  |  |  | 238,219 |  |  |  |  | 5,113 |
Commercial real estate - income producing |  |  |  | 373 |  |  |  |  | 1,525 |  |  |  |  | 1,959 |  |  |  |  |  |  | 18 |  |  |  |  |  |  | 2,407 |  |  |  |  | 27 |
Construction and land development |  |  |  | — |  |  |  |  | 277 |  |  |  |  | 322 |  |  |  |  |  |  | 21 |  |  |  |  |  |  | 906 |  |  |  |  | 4 |
Residential mortgages |  |  |  | 3,383 |  |  |  |  | 1,791 |  |  |  |  | 5,709 |  |  |  |  |  |  | 217 |  |  |  |  |  |  | 4,578 |  |  |  |  | 11 |
Consumer |  |  |  | 479 |  |  |  |  | 1,004 |  |  |  |  | 1,906 |  |  |  |  |  |  | 292 |  |  |  |  |  |  | 1,464 |  |  |  |  | 77 |
Total loans |  | $ |  | 141,091 |  |  | $ |  | 104,560 |  |  | $ |  | 287,767 |  |  |  |  | $ |  | 22,385 |  |  |  |  | $ |  | 247,574 |  |  | $ |  | 5,232 |
Aging Analysis The tables below present the age analysis of past due loans by portfolio class at December 31, 2020 and 2019. Prior to the adoption of CECL, purchased credit impaired loans with an accretable yield were considered to be current in the table below as of December 31, 2019. These loans totaled $6.1 million for 30-59 days past due, $2.0 million for 60-89 days past due and $8.3 million for both greater than 90 days past due and greater than 90 days past due and still accruing at December 31, 2019.
December 31, 2020 |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days past due |  | Total Past Due |  | Current |  | Total Loans |  | Recorded Investment > 90 Days and Accruing
(in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate |  | $ | 7,963 |  | $ | 2,564 |  | $ | 39,530 |  | $ | 50,057 |  | $ | 9,936,926 |  | $ | 9,986,983 |  | $ | 583
Commercial real estate - owner occupied |  |  | 1,525 |  |  | 753 |  |  | 13,663 |  |  | 15,941 |  |  | 2,841,504 |  |  | 2,857,445 |  |  | 955
Total commercial and industrial |  |  | 9,488 |  |  | 3,317 |  |  | 53,193 |  |  | 65,998 |  |  | 12,778,430 |  |  | 12,844,428 |  |  | 1,538
Commercial real estate - income producing |  |  | 1,494 |  |  | 798 |  |  | 5,744 |  |  | 8,036 |  |  | 3,349,903 |  |  | 3,357,939 |  |  | 182
Construction and land development |  |  | 4,168 |  |  | 284 |  |  | 2,001 |  |  | 6,453 |  |  | 1,058,604 |  |  | 1,065,057 |  |  | —
Residential mortgages |  |  | 29,319 |  |  | 9,858 |  |  | 27,886 |  |  | 67,063 |  |  | 2,598,149 |  |  | 2,665,212 |  |  | 912
Consumer |  |  | 12,215 |  |  | 5,012 |  |  | 11,714 |  |  | 28,941 |  |  | 1,828,354 |  |  | 1,857,295 |  |  | 729
Total loans |  | $ | 56,684 |  | $ | 19,269 |  | $ | 100,538 |  | $ | 176,491 |  | $ | 21,613,440 |  | $ | 21,789,931 |  | $ | 3,361
December 31, 2019 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | Greater Than 90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Recorded Investment > 90 Days and Accruing |
(in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate |  | $ |  | 20,893 |  |  | $ |  | 13,445 |  |  | $ |  | 100,806 |  |  | $ |  | 135,144 |  |  | $ |  | 9,031,803 |  |  | $ |  | 9,166,947 |  |  | $ |  | 1,537 |
Commercial real estate - owner occupied |  |  |  | 4,862 |  |  |  |  | 556 |  |  |  |  | 7,268 |  |  |  |  | 12,686 |  |  |  |  | 2,725,774 |  |  |  |  | 2,738,460 |  |  |  |  | 830 |
Total commercial and industrial |  |  |  | 25,755 |  |  |  |  | 14,001 |  |  |  |  | 108,074 |  |  |  |  | 147,830 |  |  |  |  | 11,757,577 |  |  |  |  | 11,905,407 |  |  |  |  | 2,367 |
Commercial real estate - income producing |  |  |  | 738 |  |  |  |  | 703 |  |  |  |  | 2,910 |  |  |  |  | 4,351 |  |  |  |  | 2,990,097 |  |  |  |  | 2,994,448 |  |  |  |  | 450 |
Construction and land development |  |  |  | 5,747 |  |  |  |  | 680 |  |  |  |  | 2,480 |  |  |  |  | 8,907 |  |  |  |  | 1,148,544 |  |  |  |  | 1,157,451 |  |  |  |  | 2,042 |
Residential mortgages |  |  |  | 32,867 |  |  |  |  | 8,584 |  |  |  |  | 23,577 |  |  |  |  | 65,028 |  |  |  |  | 2,925,603 |  |  |  |  | 2,990,631 |  |  |  |  | 85 |
Consumer |  |  |  | 18,586 |  |  |  |  | 6,215 |  |  |  |  | 9,901 |  |  |  |  | 34,702 |  |  |  |  | 2,130,116 |  |  |  |  | 2,164,818 |  |  |  |  | 1,638 |
Total loans |  | $ |  | 83,693 |  |  | $ |  | 30,183 |  |  | $ |  | 146,942 |  |  | $ |  | 260,818 |  |  | $ |  | 20,951,937 |  |  | $ |  | 21,212,755 |  |  | $ |  | 6,582 |
Credit Quality Indicators The tables below present the credit quality indicators by portfolio class and segment of loans at December 31, 2020 and December 31, 2019. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process. In addition, the Company often examines portfolios of loans to determine if there are areas of risk not specifically identified in its loan by loan approach. As a result, several loans were downgraded to pass-watch in 2020 in reaction to the economic downturn caused by the pandemic and other environmental factors. In alignment with regulatory guidance, the Company has been working with its customers to manage through this period of severe uncertainty and economic stress, including providing various types of loan deferrals. While the majority of these deferrals have expired, our ability to predict future cash flow is limited due to the economic uncertainty, and we expect that further risk rating adjustments may be required.
|  | December 31, 2020 |
(in thousands) |  | Commercial Non- Real Estate |  |  | Commercial Real Estate - Owner Occupied |  |  | Total Commercial and Industrial |  |  | Commercial Real Estate - Income Producing |  |  | Construction and Land Development |  |  | Total Commercial |
Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ |  | 9,439,264 |  |  | $ |  | 2,641,423 |  |  | $ |  | 12,080,687 |  |  | $ |  | 3,219,155 |  |  | $ |  | 1,033,060 |  |  | $ |  | 16,332,902 |
Pass-Watch |  |  |  | 314,739 |  |  |  |  | 114,358 |  |  |  |  | 429,097 |  |  |  |  | 89,968 |  |  |  |  | 22,820 |  |  |  |  | 541,885 |
Special Mention |  |  |  | 79,613 |  |  |  |  | 46,239 |  |  |  |  | 125,852 |  |  |  |  | 5,989 |  |  |  |  | 5,751 |  |  |  |  | 137,592 |
Substandard |  |  |  | 153,367 |  |  |  |  | 55,425 |  |  |  |  | 208,792 |  |  |  |  | 42,827 |  |  |  |  | 3,426 |  |  |  |  | 255,045 |
Doubtful |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |
Total |  | $ |  | 9,986,983 |  |  | $ |  | 2,857,445 |  |  | $ |  | 12,844,428 |  |  | $ |  | 3,357,939 |  |  | $ |  | 1,065,057 |  |  | $ |  | 17,267,424 |
|  | December 31, 2019 |
(in thousands) |  | Commercial Non- Real Estate |  |  | Commercial Real Estate - Owner Occupied |  |  | Total Commercial and Industrial |  |  | Commercial Real Estate - Income Producing |  |  | Construction and Land Development |  |  | Total Commercial |
Grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ |  | 8,492,113 |  |  | $ |  | 2,517,448 |  |  | $ |  | 11,009,561 |  |  | $ |  | 2,883,553 |  |  | $ |  | 1,120,997 |  |  | $ |  | 15,014,111 |
Pass-Watch |  |  |  | 220,850 |  |  |  |  | 146,266 |  |  |  |  | 367,116 |  |  |  |  | 69,765 |  |  |  |  | 25,621 |  |  |  |  | 462,502 |
Special Mention |  |  |  | 71,654 |  |  |  |  | 14,651 |  |  |  |  | 86,305 |  |  |  |  | 14,995 |  |  |  |  | 283 |  |  |  |  | 101,583 |
Substandard |  |  |  | 382,330 |  |  |  |  | 60,095 |  |  |  |  | 442,425 |  |  |  |  | 26,135 |  |  |  |  | 10,550 |  |  |  |  | 479,110 |
Doubtful |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |
Total |  | $ |  | 9,166,947 |  |  | $ |  | 2,738,460 |  |  | $ |  | 11,905,407 |  |  | $ |  | 2,994,448 |  |  | $ |  | 1,157,451 |  |  | $ |  | 16,057,306 |
|  | December 31, 2020 |  |  | December 31, 2019 |
(in thousands) |  | Residential Mortgage |  |  | Consumer |  |  | Total |  |  | Residential Mortgage |  |  | Consumer |  |  | Total |
Performing |  | $ |  | 2,622,422 |  |  | $ |  | 1,832,885 |  |  | $ |  | 4,455,307 |  |  | $ |  | 2,950,854 |  |  | $ |  | 2,147,312 |  |  | $ |  | 5,098,166 |
Nonperforming |  |  |  | 42,790 |  |  |  |  | 24,410 |  |  |  |  | 67,200 |  |  |  |  | 39,777 |  |  |  |  | 17,506 |  |  |  |  | 57,283 |
Total |  | $ |  | 2,665,212 |  |  | $ |  | 1,857,295 |  |  | $ |  | 4,522,507 |  |  | $ |  | 2,990,631 |  |  | $ |  | 2,164,818 |  |  | $ |  | 5,155,449 |
Below are the definitions of the Company’s internally assigned grades: Commercial:
| • | Pass - loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk.
| • | Pass - Watch - credits in this category are of sufficient risk to cause concern. This category is reserved for credits that display negative performance trends. The “Watch” grade should be regarded as a transition category.
| • | Special Mention - a criticized asset category defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Special mention credits are not considered part of the Classified credit categories and do not expose an institution to sufficient risk to warrant adverse classification.
| • | Substandard - an asset that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
| • | Doubtful - an asset that has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
| • | Loss - credits classified as Loss are considered uncollectable and are charged off promptly once so classified.
Residential and Consumer:
| • | Performing – accruing loans that have not been modified in a troubled debt restructuring.
| • | Nonperforming – loans for which there are good reasons to doubt that payments will be made in full. All loans with nonaccrual status and all loans that have been modified in a troubled debt restructuring are classified as nonperforming.
Vintage Analysis The following table presents credit quality disclosures of amortized cost by segment and vintage for term loans and by revolving and revolving converted to amortizing at December 31, 2020. The Company defines vintage as the later of origination, renewal or restructure date.
| Term Loans |  |  |  |  |  |  |  |  |  |  |
| Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Revolving Loans |  |  | Revolving Loans Converted to Term Loans |  |  | Total |
Commercial Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 5,673,370 |  |  | $ | 2,819,696 |  |  | $ | 1,740,784 |  |  | $ | 1,391,140 |  |  | $ | 960,094 |  |  | $ | 1,231,913 |  |  | $ | 2,420,058 |  |  | $ | 95,847 |  |  | $ | 16,332,902 |
Pass-Watch |  |  | 115,555 |  |  |  | 96,473 |  |  |  | 50,475 |  |  |  | 42,877 |  |  |  | 58,331 |  |  |  | 84,363 |  |  |  | 74,629 |  |  |  | 19,182 |  |  |  | 541,885 |
Special Mention |  |  | 3,196 |  |  |  | 27,157 |  |  |  | 21,074 |  |  |  | 30,872 |  |  |  | 28,933 |  |  |  | 4,146 |  |  |  | 18,626 |  |  |  | 3,588 |  |  |  | 137,592 |
Substandard |  |  | 75,461 |  |  |  | 33,844 |  |  |  | 20,527 |  |  |  | 35,383 |  |  |  | 15,071 |  |  |  | 36,589 |  |  |  | 30,162 |  |  |  | 8,008 |  |  |  | 255,045 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial Loans |  | $ | 5,867,582 |  |  | $ | 2,977,170 |  |  | $ | 1,832,860 |  |  | $ | 1,500,272 |  |  | $ | 1,062,429 |  |  | $ | 1,357,011 |  |  | $ | 2,543,475 |  |  | $ | 126,625 |  |  | $ | 17,267,424 |
Residential Mortgage and Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 438,831 |  |  | $ | 504,124 |  |  | $ | 437,518 |  |  | $ | 560,347 |  |  | $ | 501,018 |  |  | $ | 816,567 |  |  | $ | 1,190,775 |  |  | $ | 6,127 |  |  | $ | 4,455,307 |
Nonperforming |  |  | 1,466 |  |  |  | 3,781 |  |  |  | 5,881 |  |  |  | 8,380 |  |  |  | 3,981 |  |  |  | 35,500 |  |  |  | 3,652 |  |  |  | 4,559 |  |  |  | 67,200 |
Total Consumer Loans |  | $ | 440,297 |  |  | $ | 507,905 |  |  | $ | 443,399 |  |  | $ | 568,727 |  |  | $ | 504,999 |  |  | $ | 852,067 |  |  | $ | 1,194,427 |  |  | $ | 10,686 |  |  | $ | 4,522,507 |
Purchased Credit Impaired Loans Under the transition provisions for the application of CECL, the Company classified all loans previously accounted for as purchased credit impaired under ASC 310-30 as purchased credit deteriorated. The application of these provisions resulted in an increase of $19.8 million to the amortized cost basis of the financial asset and the allowance for credit losses at the date of adoption, representing the remaining credit portion of the purchased discount. The Company elected not to maintain pools of loans accounted for under Subtopic 310-30 with the adoption of CECL. The remaining noncredit discount was allocated to the individual loans and will be accreted to interest income using the interest method based on the effective interest rate. Changes in the carrying amount of purchased credit impaired loans and related accretable yield are presented in the following table for the year ended December 31, 2019:
|  | 2019 |
|  | Carrying |  |  |  |  |  |
|  | Amount |  |  | Accretable |
(in thousands) |  | of Loans |  |  | Yield |
Balance at beginning of period |  | $ |  | 129,596 |  |  | $ |  | 37,294 |
Additions |  |  |  | 120,562 |  |  |  |  | 6,246 |
Payments received, net |  |  |  | (48,076 | ) |  |  |  | (4,601 | )
Accretion |  |  |  | 13,163 |  |  |  |  | (13,163 | )
Increase in expected cash flows based on actual cash flow and changes in cash flow assumptions |  |  |  | — |  |  |  |  | 4,170 |
Balance at end of period |  | $ |  | 215,245 |  |  | $ |  | 29,946 |
Residential Mortgage Loans in Process of Foreclosure Loans in process of foreclosure include those for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. Included in loans are $17.2 million and $8.6 million of consumer loans secured by single family residential mortgage real estate that are in process of foreclosure as of December 31, 2020 and 2019, respectively. In March 2020, in response to the economic deterioration stemming from the COVID-19 pandemic, the Company placed all active residential mortgage foreclosures on hold and suspended the filing of new foreclosures. Foreclosure activity in all of the markets we serve had resumed by October 1, 2020. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $3.4 million and $6.3 million of foreclosed single family residential properties in other real estate owned as of December 31, 2020 and 2019, respectively. Loans Held for Sale Loans held for sale totaled $136.1 million and $55.9 million, respectively, at December 31, 2020 and 2019. Substantially all loans held for sale are residential mortgage loans originated for sale. Concurrent with the commitment to lend, the Company enters into a forward commitment to sell these loans on a best efforts delivery basis.

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