XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Loans and Allowance for Credit Losses | 3 Months Ended
--- | ---
Mar. 31, 2023
Receivables [Abstract] |
Loans and Allowance for Credit Losses | 3. 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; certain areas of east and northeast Texas, including Houston, Dallas, Austin, and San Antonio; Nashville, Tennessee; and the metropolitan area of Atlanta, Georgia. Loans, net of unearned income, by portfolio are presented at amortized cost basis in the table below. Amortized cost does not include accrued interest, which is reflected in the accrued interest line item in the Consolidated Balance Sheets, totaling $107.9 million and $100.2 million at March 31, 2023 and December 31, 2022, respectively. The following table presents loans, net of unearned income, by portfolio class at March 31, 2023 and December 31, 2022.
|  | March 31, |  |  | December 31, |
($ in thousands) |  | 2023 |  |  | 2022 |
Commercial non-real estate |  | $ | 10,013,482 |  |  | $ | 10,146,453 |
Commercial real estate - owner occupied |  |  | 3,050,748 |  |  |  | 3,033,058 |
Total commercial and industrial |  |  | 13,064,230 |  |  |  | 13,179,511 |
Commercial real estate - income producing |  |  | 3,758,455 |  |  |  | 3,560,991 |
Construction and land development |  |  | 1,726,916 |  |  |  | 1,703,592 |
Residential mortgages |  |  | 3,329,793 |  |  |  | 3,092,605 |
Consumer |  |  | 1,525,129 |  |  |  | 1,577,347 |
Total loans |  | $ | 23,404,523 |  |  | $ | 23,114,046 |
The following briefly describes the composition of each loan category and portfolio class. Commercial and industrial Commercial and industrial loans are made available to businesses for working capital (including financing of inventory and receivables), business expansion, to facilitate the acquisition of a business, and the purchase of equipment and machinery, including equipment leasing. These loans are primarily made based on the identified cash flows of the borrower and, when secured, have the added strength of the underlying collateral. Commercial non-real estate loans may be secured by the assets being financed or other tangible or intangible business assets such as accounts receivable, inventory, ownership, enterprise value or commodity interests, and may incorporate a personal or corporate guarantee; however, some short-term loans may be made on an unsecured basis, including a small portfolio of corporate credit cards, generally issued as a part of overall customer relationships. Commercial real estate – owner occupied loans consist of commercial mortgages on properties where repayment is generally dependent on the cash flow from the ongoing operations and activities of the borrower. Like commercial non-real estate, these loans are primarily made based on the identified cash flows of the borrower, but also have the added strength of the value of underlying real estate collateral. Commercial real estate – income producing Commercial real estate – income producing loans consist of loans secured by commercial mortgages on properties where the loan is made to real estate developers or investors and repayment is dependent on the sale, refinance, or income generated from the operation of the property. Properties financed include retail, office, multifamily, senior housing, hotel/motel, skilled nursing facilities and other commercial properties. Construction and land development Construction and land development loans are made to facilitate the acquisition, development, improvement and construction of both commercial and residential-purpose properties. Such loans are made to builders and investors where repayment is expected to be made from the sale, refinance or operation of the property or to businesses to be used in their business operations. This portfolio also includes residential construction loans and loans secured by raw land not yet under development. Residential mortgages Residential mortgages consist of closed-end loans secured by first liens on 1- 4 family residential properties. The portfolio includes both fixed and adjustable rate loans, although most longer-term, fixed rate loans originated are sold in the secondary mortgage market. Consumer Consumer loans include second lien mortgage home loans, home equity lines of credit and nonresidential consumer purpose loans. Nonresidential consumer loans include both direct and indirect loans. Direct nonresidential consumer loans are made to finance the purchase of personal property, including automobiles, recreational vehicles and boats, and for other personal purposes (secured and unsecured), and deposit account secured loans. Indirect nonresidential consumer loans include automobile financing provided to the consumer through an agreement with automobile dealerships, though the Company is no longer engaged in this type of lending and the remaining portfolio is in runoff. Consumer loans also include a small portfolio of credit card receivables issued on the basis of applications received through referrals from the Bank’s branches, online and other marketing efforts. Allowance for Credit Losses The calculation of the allowance for credit losses 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 allowance for credit losses was developed using multiple Moody’s Analytics (“Moody’s") macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period. The following tables present activity in the allowance for credit losses (ACL) by portfolio class for the three months ended March 31, 2023 and 2022, as well as the corresponding recorded investment in loans at the end of each period.
|  |  | Commercial |  | Total |  | Commercial |  |  |  |  |  |  |  |  |
| Commercial |  | real estate- |  | commercial |  | real estate- |  | Construction |  |  |  |  |  |  |
| non-real |  | owner |  | and |  | income |  | and land |  | Residential |  |  |  |  |
($ in thousands) | estate |  | occupied |  | industrial |  | producing |  | development |  | mortgages |  | Consumer |  | Total |
| Three Months Ended March 31, 2023 |
Allowance for credit losses |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |
Beginning balance | $ | 96,461 |  | $ | 48,284 |  | $ | 144,745 |  | $ | 71,961 |  | $ | 30,498 |  | $ | 32,464 |  | $ | 28,121 |  | $ | 307,789 |
Charge-offs |  | (4,528 | ) |  | — |  |  | (4,528 | ) |  | — |  |  | (61 | ) |  | (20 | ) |  | (3,363 | ) |  | (7,972 | )
Recoveries |  | 1,033 |  |  | 195 |  |  | 1,228 |  |  | — |  |  | 6 |  |  | 181 |  |  | 838 |  |  | 2,253 |
Net provision for loan losses |  | (320 | ) |  | (813 | ) |  | (1,133 | ) |  | 4,231 |  |  | 459 |  |  | 1,916 |  |  | 1,842 |  |  | 7,315 |
Ending balance - allowance for loan losses | $ | 92,646 |  | $ | 47,666 |  | $ | 140,312 |  | $ | 76,192 |  | $ | 30,902 |  | $ | 34,541 |  | $ | 27,438 |  | $ | 309,385 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 4,984 |  | $ | 302 |  | $ | 5,286 |  | $ | 1,395 |  | $ | 25,110 |  | $ | 31 |  | $ | 1,487 |  | $ | 33,309 |
Provision for losses on unfunded commitments |  | (191 | ) |  | 22 |  |  | (169 | ) |  | 493 |  |  | (1,487 | ) |  | (14 | ) |  | (118 | ) |  | (1,295 | )
Ending balance - reserve for unfunded lending commitments |  | 4,793 |  |  | 324 |  |  | 5,117 |  |  | 1,888 |  |  | 23,623 |  |  | 17 |  |  | 1,369 |  |  | 32,014 |
Total allowance for credit losses | $ | 97,439 |  | $ | 47,990 |  | $ | 145,429 |  | $ | 78,080 |  | $ | 54,525 |  | $ | 34,558 |  | $ | 28,807 |  | $ | 341,399 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Collectively evaluated |  | 92,646 |  |  | 47,666 |  |  | 140,312 |  |  | 76,192 |  |  | 30,902 |  |  | 34,541 |  |  | 27,438 |  |  | 309,385 |
Allowance for loan losses | $ | 92,646 |  | $ | 47,666 |  | $ | 140,312 |  | $ | 76,192 |  | $ | 30,902 |  | $ | 34,541 |  | $ | 27,438 |  | $ | 309,385 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Collectively evaluated |  | 4,793 |  |  | 324 |  |  | 5,117 |  |  | 1,888 |  |  | 23,623 |  |  | 17 |  |  | 1,369 |  |  | 32,014 |
Reserve for unfunded lending commitments: | $ | 4,793 |  | $ | 324 |  | $ | 5,117 |  | $ | 1,888 |  | $ | 23,623 |  | $ | 17 |  | $ | 1,369 |  | $ | 32,014 |
Total allowance for credit losses | $ | 97,439 |  | $ | 47,990 |  | $ | 145,429 |  | $ | 78,080 |  | $ | 54,525 |  | $ | 34,558 |  | $ | 28,807 |  | $ | 341,399 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 10,273 |  | $ | 684 |  | $ | 10,957 |  | $ | 1,120 |  | $ | — |  | $ | 1,135 |  | $ | — |  | $ | 13,212 |
Collectively evaluated |  | 10,003,209 |  |  | 3,050,064 |  |  | 13,053,273 |  |  | 3,757,335 |  |  | 1,726,916 |  |  | 3,328,658 |  |  | 1,525,129 |  |  | 23,391,311 |
Total loans | $ | 10,013,482 |  | $ | 3,050,748 |  | $ | 13,064,230 |  | $ | 3,758,455 |  | $ | 1,726,916 |  | $ | 3,329,793 |  | $ | 1,525,129 |  | $ | 23,404,523 |
In arriving at the March 31, 2023 allowance for credit losses, the Company weighted the March 2023 baseline economic forecast, which Moody’s defines as the “most likely outcome” based on current conditions and its view of where the economy is headed, with a 40% probability. The March 2023 baseline scenario maintains a generally optimistic outlook in its assumptions surrounding the drivers of economic growth, including its expectations of the effectiveness of the Federal Reserve's monetary policy in easing inflationary conditions, though at a slower pace than previously forecasted. The baseline forecast includes sustained economic growth with forecasted annual GDP growth of 1.9% for both 2023 and 2024, and 2.7% for 2025, and only a modest increase in unemployment, forecasted at 3.5% for 2023, 3.9% for 2024, and 4.0% for 2025. Under the baseline forecast, the recent bank failures are not considered symptomatic of a serious broader problem and do not weaken the financial system or the economy. Management determined that assumptions provided for in the downside slower near-term growth/mild recessionary scenario (S-2) were also reasonably possible and weighted that scenario at 50%, and further weighted the (S-3) moderate recessionary scenario at 10% due to additional downside risk. The S-2 scenario assumes that interest rates remain elevated, global supply chain issues keep inflation elevated and the recent bank failures reduce consumer confidence and cause banks to tighten lending standards. This leads to a mild recession that starts in the second quarter of 2023 lasting three quarters, with a peak to trough decline of 1.3% resulting in forecasted annual GDP growth of only 0.9% for 2023, 0.3% for 2024, and 3.2% for 2025; and unemployment of 4.8% in 2023, 5.8% in 2024, and 4.2% in 2025. The S-3 scenario assumes a more severe recession with annual GDP growth of 0.3% in 2023, a decline of 0.3% in 2024, and then back to growth of 2.6% in 2025; and unemployment of 5.6%, 7.6%, and 6.3% in 2023, 2024, and 2025, respectively. While economic uncertainty continues, including the possibility of a recession in the near-term, the credit loss outlook on the loan portfolio as a whole has not changed materially since year-end. Positive economic indicators of growth within the Company's footprint, relatively stable asset quality metrics and modest credit losses in recent periods led to relatively flat reserves for the three months ended March 31, 2023.
|  |  | Commercial |  | Total |  | Commercial |  |  |  |  |  |  |  |  |
| Commercial |  | real estate- |  | commercial |  | real estate- |  | Construction |  |  |  |  |  |  |
| non-real |  | owner |  | and |  | income |  | and land |  | Residential |  |  |  |  |
($ in thousands) | estate |  | occupied |  | industrial |  | producing |  | development |  | mortgages |  | Consumer |  | Total |
| Three Months Ended March 31, 2022 |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 95,888 |  | $ | 53,433 |  | $ | 149,321 |  | $ | 108,058 |  | $ | 22,102 |  | $ | 30,623 |  | $ | 31,961 |  | $ | 342,065 |
Charge-offs |  | (2,659 | ) |  | — |  |  | (2,659 | ) |  | (4 | ) |  | — |  |  | (42 | ) |  | (2,680 | ) |  | (5,385 | )
Recoveries |  | 2,142 |  |  | 389 |  |  | 2,531 |  |  | 878 |  |  | 68 |  |  | 61 |  |  | 1,528 |  |  | 5,066 |
Net provision for loan losses |  | (8,072 | ) |  | (5,361 | ) |  | (13,433 | ) |  | (3,565 | ) |  | (1,082 | ) |  | (4,307 | ) |  | (1,516 | ) |  | (23,903 | )
Ending balance - allowance for loan losses | $ | 87,299 |  | $ | 48,461 |  | $ | 135,760 |  | $ | 105,367 |  | $ | 21,088 |  | $ | 26,335 |  | $ | 29,293 |  | $ | 317,843 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 4,522 |  | $ | 323 |  | $ | 4,845 |  | $ | 1,694 |  | $ | 21,907 |  | $ | 22 |  | $ | 866 |  | $ | 29,334 |
Provision for losses on unfunded commitments |  | (246 | ) |  | 108 |  |  | (138 | ) |  | 453 |  |  | 474 |  |  | (3 | ) |  | 590 |  |  | 1,376 |
Ending balance - reserve for unfunded lending commitments |  | 4,276 |  |  | 431 |  |  | 4,707 |  |  | 2,147 |  |  | 22,381 |  |  | 19 |  |  | 1,456 |  |  | 30,710 |
Total allowance for credit losses | $ | 91,575 |  | $ | 48,892 |  | $ | 140,467 |  | $ | 107,514 |  | $ | 43,469 |  | $ | 26,354 |  | $ | 30,749 |  | $ | 348,553 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 112 |  | $ | 32 |  | $ | 144 |  | $ | 20 |  | $ | 20 |  | $ | 408 |  | $ | 174 |  | $ | 766 |
Collectively evaluated |  | 87,187 |  |  | 48,429 |  |  | 135,616 |  |  | 105,347 |  |  | 21,068 |  |  | 25,927 |  |  | 29,119 |  |  | 317,077 |
Allowance for loan losses | $ | 87,299 |  | $ | 48,461 |  | $ | 135,760 |  | $ | 105,367 |  | $ | 21,088 |  | $ | 26,335 |  | $ | 29,293 |  | $ | 317,843 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Collectively evaluated |  | 4,276 |  |  | 431 |  |  | 4,707 |  |  | 2,147 |  |  | 22,381 |  |  | 19 |  |  | 1,456 |  |  | 30,710 |
Reserve for unfunded lending commitments: | $ | 4,276 |  | $ | 431 |  | $ | 4,707 |  | $ | 2,147 |  | $ | 22,381 |  | $ | 19 |  | $ | 1,456 |  | $ | 30,710 |
Total allowance for credit losses | $ | 91,575 |  | $ | 48,892 |  | $ | 140,467 |  | $ | 107,514 |  | $ | 43,469 |  | $ | 26,354 |  | $ | 30,749 |  | $ | 348,553 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 1,742 |  | $ | 951 |  | $ | 2,693 |  | $ | 1,309 |  | $ | 122 |  | $ | 4,534 |  | $ | 929 |  | $ | 9,587 |
Collectively evaluated |  | 9,582,738 |  |  | 2,867,282 |  |  | 12,450,020 |  |  | 3,561,990 |  |  | 1,286,533 |  |  | 2,458,366 |  |  | 1,556,845 |  |  | 21,313,754 |
Total loans | $ | 9,584,480 |  | $ | 2,868,233 |  | $ | 12,452,713 |  | $ | 3,563,299 |  | $ | 1,286,655 |  | $ | 2,462,900 |  | $ | 1,557,774 |  | $ | 21,323,341 |
The release of credit reserves across all portfolios during the three months ended March 31, 2022 reflected positive economic indicators in our market, continued improvement in our asset quality metrics, and a sustained period of minimal credit losses. In arriving at the allowance for credit losses at March 31, 2022, the Company weighted the baseline economic forecast at 40% and the downside slower near-term growth scenario S-2 at 60%. Nonaccrual loans and certain reportable modified loan disclosures The following table shows the composition of nonaccrual loans and those without an allowance for loan loss, by portfolio class.
|  |  | March 31, 2023 |  |  |  | December 31, 2022 |
($ in thousands) |  |  | Total nonaccrual |  |  |  | Nonaccrual without allowance for loan loss |  |  |  | Total nonaccrual |  |  |  | Nonaccrual without allowance for loan loss |
Commercial non-real estate |  | $ |  | 13,302 |  |  | $ |  | 10,273 |  |  | $ |  | 4,020 |  |  | $ |  | 941 |
Commercial real estate - owner occupied |  |  |  | 2,393 |  |  |  |  | 684 |  |  |  |  | 1,461 |  |  |  |  | 692 |
Total commercial and industrial |  |  |  | 15,695 |  |  |  |  | 10,957 |  |  |  |  | 5,481 |  |  |  |  | 1,633 |
Commercial real estate - income producing |  |  |  | 1,501 |  |  |  |  | 1,120 |  |  |  |  | 1,240 |  |  |  |  | 1,174 |
Construction and land development |  |  |  | 340 |  |  |  |  | — |  |  |  |  | 309 |  |  |  |  | — |
Residential mortgages |  |  |  | 30,111 |  |  |  |  | 1,135 |  |  |  |  | 25,269 |  |  |  |  | 1,884 |
Consumer |  |  |  | 6,697 |  |  |  |  | — |  |  |  |  | 6,692 |  |  |  |  | — |
Total loans |  | $ |  | 54,344 |  |  | $ |  | 13,212 |  |  | $ |  | 38,991 |  |  |  |  | 4,691 |
As a part of our loss mitigation efforts, we may provide modifications to borrowers experiencing financial difficulty to improve long-term collectability of the loans and to avoid the need for repossession or foreclosure of collateral. As described in Note 1 – Accounting Policy, accounting and reporting requirements changed related to such modifications effective January 1, 2023, impacting the comparability between periods of the disclosures that follow. Nonaccrual loans include reportable nonaccruing modified loans to borrowers experiencing financial difficulty (“MEFDs”) totaling $1.6 million at March 31, 2023 and loans modified in troubled debt restructurings (“TDRs”) totaling $2.6 million at December 31, 2022. Total reportable MEFDs, both accruing and nonaccruing, were $1.6 million at March 31, 2023 and total TDRs were $4.5 million at December 31, 2022. At March 31, 2023 and December 31, 2022, the Company had no unfunded commitments to borrowers whose loan terms have been modified as a reportable MEFD or TDR, respectively. The table below provides detail by portfolio class for reportable MEFDs entered into during the three months ended March 31, 2023.
|  | March 31, 2023 |
($ in thousands) |  | Balance |  |  | Percentage of portfolio class |
Commercial non-real estate |  | $ | 934 |  |  |  | 0.01 | %
Commercial real estate - owner occupied |  |  | 684 |  |  |  | 0.02 | %
Total commercial and industrial |  |  | 1,618 |  |  |  | 0.01 | %
Commercial real estate - income producing |  |  | — |  |  |  | — |
Construction and land development |  |  | — |  |  |  | — |
Residential mortgages |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |
Total reportable modified loans |  | $ | 1,618 |  |  |  | 0.01 | %
Reportable modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 consisted of term extensions ran ging from 9 months to 5 years. As of March 31, 2023, all reportable MEFDs entered into during the three months ended March 31, 2023 had a payment status of current. There were no post modification payment defaults within the three month period ended March 31, 2023. A payment default occurs if the loan is either 90 days or more delinquent or has been charged off as of the end of the period presented. During the three months ended March 31, 2022, two residential mortgage loans with pre and post modification balances of $0.1 million and two consumer loans with pre and post modification balances totaling $0.1 million were classified as TDRs. The TDRs modified during the three months ended March 31, 2022, included $0.1 million of loans with interest rate reduction and $0.1 million with other modifications. Two commercial non-real estate loans totaling $3.1 million that defaulted during the three months period ended March 31, 2022 had been modified in a TDR during the twelve months prior to default. Aging Analysis The tables below present the aging analysis of past due loans by portfolio class at March 31, 2023 and December 31, 2022.
March 31, 2023 | 30-59 days past due |  | 60-89 days past due |  | Greater than 90 days past due |  | Total past due |  | Current |  | Total Loans |  | Recorded investment > 90 days and still accruing |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate | $ | 31,691 |  | $ | 17,026 |  | $ | 11,029 |  | $ | 59,746 |  | $ | 9,953,736 |  | $ | 10,013,482 |  | $ | 8,492 |
Commercial real estate - owner occupied |  | 2,670 |  |  | 2,029 |  |  | 2,567 |  |  | 7,266 |  |  | 3,043,482 |  |  | 3,050,748 |  |  | 1,399 |
Total commercial and industrial |  | 34,361 |  |  | 19,055 |  |  | 13,596 |  |  | 67,012 |  |  | 12,997,218 |  |  | 13,064,230 |  |  | 9,891 |
Commercial real estate - income producing |  | 175 |  |  | — |  |  | 2,653 |  |  | 2,828 |  |  | 3,755,627 |  |  | 3,758,455 |  |  | 1,214 |
Construction and land development |  | 2,304 |  |  | 359 |  |  | 217 |  |  | 2,880 |  |  | 1,724,036 |  |  | 1,726,916 |  |  | 126 |
Residential mortgages |  | 29,903 |  |  | 8,055 |  |  | 13,684 |  |  | 51,642 |  |  | 3,278,151 |  |  | 3,329,793 |  |  | 167 |
Consumer |  | 6,590 |  |  | 4,506 |  |  | 4,695 |  |  | 15,791 |  |  | 1,509,338 |  |  | 1,525,129 |  |  | 1,757 |
Total | $ | 73,333 |  | $ | 31,975 |  | $ | 34,845 |  | $ | 140,153 |  | $ | 23,264,370 |  | $ | 23,404,523 |  | $ | 13,155 |
December 31, 2022 | 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 still accruing |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate | $ | 4,050 |  | $ | 21,329 |  | $ | 3,418 |  | $ | 28,797 |  | $ | 10,117,656 |  | $ | 10,146,453 |  | $ | 996 |
Commercial real estate - owner occupied |  | 19,069 |  |  | 3,346 |  |  | 1,894 |  |  | 24,309 |  |  | 3,008,749 |  |  | 3,033,058 |  |  | 1,623 |
Total commercial and industrial |  | 23,119 |  |  | 24,675 |  |  | 5,312 |  |  | 53,106 |  |  | 13,126,405 |  |  | 13,179,511 |  |  | 2,619 |
Commercial real estate - income producing |  | 879 |  |  | — |  |  | 1,174 |  |  | 2,053 |  |  | 3,558,938 |  |  | 3,560,991 |  |  | — |
Construction and land development |  | 4,029 |  |  | 242 |  |  | 133 |  |  | 4,404 |  |  | 1,699,188 |  |  | 1,703,592 |  |  | 54 |
Residential mortgages |  | 28,208 |  |  | 11,056 |  |  | 17,346 |  |  | 56,610 |  |  | 3,035,995 |  |  | 3,092,605 |  |  | 293 |
Consumer |  | 8,845 |  |  | 2,806 |  |  | 4,407 |  |  | 16,058 |  |  | 1,561,289 |  |  | 1,577,347 |  |  | 1,619 |
Total | $ | 65,080 |  | $ | 38,779 |  | $ | 28,372 |  | $ | 132,231 |  | $ | 22,981,815 |  | $ | 23,114,046 |  | $ | 4,585 |
Credit Quality Indicators The following tables present the credit quality indicators by segment and portfolio class of loans at March 31, 2023 and December 31, 2022. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process.
|  | March 31, 2023 |
($ 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 |  | $ | 9,511,047 |  |  | $ | 2,937,286 |  |  | $ | 12,448,333 |  |  | $ | 3,633,440 |  |  | $ | 1,716,329 |  |  | $ | 17,798,102 |
Pass-Watch |  |  | 277,067 |  |  |  | 52,691 |  |  |  | 329,758 |  |  |  | 116,360 |  |  |  | 9,860 |  |  |  | 455,978 |
Special Mention |  |  | 54,998 |  |  |  | 7,552 |  |  |  | 62,550 |  |  |  | 1,534 |  |  |  | 191 |  |  |  | 64,275 |
Substandard |  |  | 170,370 |  |  |  | 53,219 |  |  |  | 223,589 |  |  |  | 7,121 |  |  |  | 536 |  |  |  | 231,246 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 10,013,482 |  |  | $ | 3,050,748 |  |  | $ | 13,064,230 |  |  | $ | 3,758,455 |  |  | $ | 1,726,916 |  |  | $ | 18,549,601 |
|  | December 31, 2022 |
($ 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 |  | $ | 9,641,117 |  |  | $ | 2,912,057 |  |  | $ | 12,553,174 |  |  | $ | 3,440,648 |  |  | $ | 1,690,756 |  |  | $ | 17,684,578 |
Pass-Watch |  |  | 284,843 |  |  |  | 49,093 |  |  |  | 333,936 |  |  |  | 111,587 |  |  |  | 12,097 |  |  |  | 457,620 |
Special Mention |  |  | 79,980 |  |  |  | 6,267 |  |  |  | 86,247 |  |  |  | 3,810 |  |  |  | 196 |  |  |  | 90,253 |
Substandard |  |  | 140,513 |  |  |  | 65,641 |  |  |  | 206,154 |  |  |  | 4,946 |  |  |  | 543 |  |  |  | 211,643 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 10,146,453 |  |  | $ | 3,033,058 |  |  | $ | 13,179,511 |  |  | $ | 3,560,991 |  |  | $ | 1,703,592 |  |  | $ | 18,444,094 |
|  | March 31, 2023 |  |  | December 31, 2022 |
($ in thousands) |  | Residential mortgage |  |  | Consumer |  |  | Total |  |  | Residential mortgage |  |  | Consumer |  |  | Total |
Performing |  | $ | 3,299,682 |  |  | $ | 1,518,431 |  |  | $ | 4,818,113 |  |  | $ | 3,066,319 |  |  | $ | 1,570,186 |  |  | $ | 4,636,505 |
Nonperforming |  |  | 30,111 |  |  |  | 6,698 |  |  |  | 36,809 |  |  |  | 26,286 |  |  |  | 7,161 |  |  |  | 33,447 |
Total |  | $ | 3,329,793 |  |  | $ | 1,525,129 |  |  | $ | 4,854,922 |  |  | $ | 3,092,605 |  |  | $ | 1,577,347 |  |  | $ | 4,669,952 |
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 the 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. • Nonperforming – loans for which there are good reasons to doubt that payments will be made in full. Nonperforming loans include all loans with nonaccrual status and, prior to January 1, 2023, all loans that were modified in a troubled debt restructuring. Vintage Analysis The following tables present credit quality disclosures of amortized cost by portfolio class and vintage for term loans and by revolving and revolving converted to amortizing at March 31, 2023 and December 31, 2022. The Company defines vintage as the later of origination, renewal or modification date. The gross charge-offs presented in the table are for the three months ended March 31, 2023.
| Term Loans |  |  |  | Revolving Loans |  |  |
March 31, 2023 | Amortized Cost Basis by Origination Year |  | Revolving |  | Converted to |  |  |
($ in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Loans |  | Term Loans |  | Total |
Commercial Non-Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 443,067 |  | $ | 2,385,284 |  | $ | 1,362,105 |  | $ | 592,762 |  | $ | 505,331 |  | $ | 958,298 |  | $ | 3,214,349 |  | $ | 49,851 |  | $ | 9,511,047 |
Pass-Watch |  | 18,434 |  |  | 54,455 |  |  | 32,893 |  |  | 30,343 |  |  | 7,487 |  |  | 58,113 |  |  | 73,146 |  |  | 2,196 |  |  | 277,067 |
Special Mention |  | 32,611 |  |  | 5,560 |  |  | 522 |  |  | 1,837 |  |  | 4,198 |  |  | 1,145 |  |  | 8,984 |  |  | 141 |  |  | 54,998 |
Substandard |  | 21,424 |  |  | 21,686 |  |  | 14,027 |  |  | 30,909 |  |  | 21,450 |  |  | 12,123 |  |  | 47,928 |  |  | 823 |  |  | 170,370 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Non- Real Estate | $ | 515,536 |  | $ | 2,466,985 |  | $ | 1,409,547 |  | $ | 655,851 |  | $ | 538,466 |  | $ | 1,029,679 |  | $ | 3,344,407 |  | $ | 53,011 |  | $ | 10,013,482 |
Gross Charge-offs | $ | — |  | $ | 309 |  | $ | 170 |  | $ | 463 |  | $ | 12 |  | $ | 33 |  | $ | 2,993 |  | $ | 548 |  | $ | 4,528 |
Commercial Real Estate - Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 86,006 |  | $ | 643,498 |  | $ | 641,601 |  | $ | 526,654 |  | $ | 315,352 |  | $ | 677,090 |  | $ | 34,237 |  | $ | 12,848 |  | $ | 2,937,286 |
Pass-Watch |  | 1,985 |  |  | 8,785 |  |  | 4,558 |  |  | 3,668 |  |  | 15,513 |  |  | 17,228 |  |  | 954 |  |  | — |  |  | 52,691 |
Special Mention |  | — |  |  | 46 |  |  | — |  |  | 543 |  |  | 603 |  |  | 6,360 |  |  | — |  |  | — |  |  | 7,552 |
Substandard |  | 18,506 |  |  | 6,957 |  |  | 680 |  |  | 7,453 |  |  | 4,734 |  |  | 13,889 |  |  | 1,000 |  |  | — |  |  | 53,219 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Real Estate - Owner Occupied | $ | 106,497 |  | $ | 659,286 |  | $ | 646,839 |  | $ | 538,318 |  | $ | 336,202 |  | $ | 714,567 |  | $ | 36,191 |  | $ | 12,848 |  | $ | 3,050,748 |
Gross Charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Commercial Real Estate - Income Producing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 122,528 |  | $ | 887,881 |  | $ | 889,960 |  | $ | 705,277 |  | $ | 398,028 |  | $ | 514,955 |  | $ | 114,746 |  | $ | 65 |  | $ | 3,633,440 |
Pass-Watch |  | 18,723 |  |  | 1,191 |  |  | 37 |  |  | 59,847 |  |  | 22,922 |  |  | 13,238 |  |  | 402 |  |  | — |  |  | 116,360 |
Special Mention |  | 985 |  |  | — |  |  | — |  |  | 178 |  |  | — |  |  | 371 |  |  | — |  |  | — |  |  | 1,534 |
Substandard |  | 3,535 |  |  | 397 |  |  | 319 |  |  | 1,214 |  |  | 8 |  |  | 1,648 |  |  | — |  |  | — |  |  | 7,121 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Real Estate - Income Producing | $ | 145,771 |  | $ | 889,469 |  | $ | 890,316 |  | $ | 766,516 |  | $ | 420,958 |  | $ | 530,212 |  | $ | 115,148 |  | $ | 65 |  | $ | 3,758,455 |
Gross Charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Construction and Land Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 155,497 |  | $ | 748,153 |  | $ | 545,932 |  | $ | 103,183 |  | $ | 7,786 |  | $ | 24,241 |  | $ | 126,158 |  | $ | 5,379 |  | $ | 1,716,329 |
Pass-Watch |  | 2,408 |  |  | 3,185 |  |  | 2,670 |  |  | 96 |  |  | 522 |  |  | 611 |  |  | 368 |  |  | — |  |  | 9,860 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | 191 |  |  | — |  |  | — |  |  | — |  |  | 191 |
Substandard |  | — |  |  | 51 |  |  | 51 |  |  | — |  |  | 11 |  |  | 423 |  |  | — |  |  | — |  |  | 536 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Construction and Land Development | $ | 157,905 |  | $ | 751,389 |  | $ | 548,653 |  | $ | 103,279 |  | $ | 8,510 |  | $ | 25,275 |  | $ | 126,526 |  | $ | 5,379 |  | $ | 1,726,916 |
Gross Charge-offs | $ | — |  | $ | 7 |  | $ | 54 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 61 |
Residential Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 173,196 |  | $ | 628,643 |  | $ | 800,082 |  | $ | 516,534 |  | $ | 187,232 |  | $ | 990,957 |  | $ | 3,038 |  |  | — |  | $ | 3,299,682 |
Nonperforming |  | 70 |  |  | 2,452 |  |  | 3,052 |  |  | 338 |  |  | 1,610 |  |  | 22,589 |  |  | — |  |  | — |  |  | 30,111 |
Total Residential Mortgage | $ | 173,266 |  | $ | 631,095 |  | $ | 803,134 |  | $ | 516,872 |  | $ | 188,842 |  | $ | 1,013,546 |  | $ | 3,038 |  | $ | — |  | $ | 3,329,793 |
Gross Charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 20 |  | $ | — |  | $ | — |  | $ | 20 |
Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 31,666 |  | $ | 83,306 |  | $ | 53,900 |  | $ | 40,880 |  | $ | 53,213 |  | $ | 69,745 |  | $ | 1,182,108 |  | $ | 3,613 |  | $ | 1,518,431 |
Nonperforming |  | 32 |  |  | 172 |  |  | 362 |  |  | 573 |  |  | 610 |  |  | 4,081 |  |  | 162 |  |  | 706 |  |  | 6,698 |
Total Consumer | $ | 31,698 |  | $ | 83,478 |  | $ | 54,262 |  | $ | 41,453 |  | $ | 53,823 |  | $ | 73,826 |  | $ | 1,182,270 |  | $ | 4,319 |  | $ | 1,525,129 |
Gross Charge-offs | $ | — |  | $ | 294 |  | $ | 329 |  | $ | 43 |  | $ | 152 |  | $ | 236 |  | $ | 2,013 |  | $ | 296 |  | $ | 3,363 |
| Term Loans |  |  |  | Revolving Loans |  |  |
December 31, 2022 | Amortized Cost Basis by Origination Year |  | Revolving |  | Converted to |  |  |
($ in thousands) | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Loans |  | Term Loans |  | Total |
Commercial Non-Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 2,600,656 |  | $ | 1,450,689 |  | $ | 679,355 |  | $ | 569,842 |  | $ | 267,025 |  | $ | 763,122 |  | $ | 3,193,769 |  | $ | 116,659 |  | $ | 9,641,117 |
Pass-Watch |  | 68,307 |  |  | 38,949 |  |  | 31,841 |  |  | 11,757 |  |  | 8,237 |  |  | 49,577 |  |  | 66,339 |  |  | 9,836 |  |  | 284,843 |
Special Mention |  | 30,276 |  |  | 13,625 |  |  | 2,443 |  |  | 4,406 |  |  | 322 |  |  | 1,654 |  |  | 25,184 |  |  | 2,070 |  |  | 79,980 |
Substandard |  | 29,667 |  |  | 13,807 |  |  | 11,766 |  |  | 21,667 |  |  | 12,792 |  |  | 1,250 |  |  | 39,213 |  |  | 10,351 |  |  | 140,513 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Non- Real Estate | $ | 2,728,906 |  | $ | 1,517,070 |  | $ | 725,405 |  | $ | 607,672 |  | $ | 288,376 |  | $ | 815,603 |  | $ | 3,324,505 |  | $ | 138,916 |  | $ | 10,146,453 |
Commercial Real Estate - Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 630,121 |  | $ | 650,742 |  | $ | 537,849 |  | $ | 328,364 |  | $ | 265,437 |  | $ | 447,707 |  | $ | 46,730 |  | $ | 5,107 |  | $ | 2,912,057 |
Pass-Watch |  | 7,129 |  |  | 5,299 |  |  | 3,743 |  |  | 13,301 |  |  | 10,872 |  |  | 7,706 |  |  | 893 |  |  | 150 |  |  | 49,093 |
Special Mention |  | — |  |  | — |  |  | 544 |  |  | 822 |  |  | 1,231 |  |  | 3,670 |  |  | — |  |  | — |  |  | 6,267 |
Substandard |  | 19,899 |  |  | 547 |  |  | 6,715 |  |  | 7,663 |  |  | 7,543 |  |  | 21,465 |  |  | 1,000 |  |  | 809 |  |  | 65,641 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Real Estate - Owner Occupied | $ | 657,149 |  | $ | 656,588 |  | $ | 548,851 |  | $ | 350,150 |  | $ | 285,083 |  | $ | 480,548 |  | $ | 48,623 |  | $ | 6,066 |  | $ | 3,033,058 |
Commercial Real Estate - Income Producing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 894,522 |  | $ | 795,378 |  | $ | 660,235 |  | $ | 420,435 |  | $ | 232,145 |  | $ | 317,446 |  | $ | 113,487 |  | $ | 7,000 |  | $ | 3,440,648 |
Pass-Watch |  | 1,027 |  |  | 18,070 |  |  | 58,256 |  |  | 20,865 |  |  | 12,066 |  |  | 836 |  |  | 467 |  |  | — |  |  | 111,587 |
Special Mention |  | 235 |  |  | — |  |  | 708 |  |  | 2,325 |  |  | 166 |  |  | 376 |  |  | — |  |  | — |  |  | 3,810 |
Substandard |  | 415 |  |  | — |  |  | 2,785 |  |  | 8 |  |  | 1,240 |  |  | 498 |  |  | — |  |  | — |  |  | 4,946 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Real Estate - Income Producing | $ | 896,199 |  | $ | 813,448 |  | $ | 721,984 |  | $ | 443,633 |  | $ | 245,617 |  | $ | 319,156 |  | $ | 113,954 |  | $ | 7,000 |  | $ | 3,560,991 |
Construction and Land Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 663,735 |  | $ | 711,731 |  | $ | 148,579 |  | $ | 9,198 |  | $ | 15,360 |  | $ | 10,854 |  | $ | 128,842 |  | $ | 2,457 |  | $ | 1,690,756 |
Pass-Watch |  | 8,233 |  |  | 1,944 |  |  | 643 |  |  | 559 |  |  | 199 |  |  | 450 |  |  | 69 |  |  | — |  |  | 12,097 |
Special Mention |  | — |  |  | — |  |  | — |  |  | 196 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 196 |
Substandard |  | 35 |  |  | 55 |  |  | — |  |  | 12 |  |  | 61 |  |  | 380 |  |  | — |  |  | — |  |  | 543 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Construction and Land Development | $ | 672,003 |  | $ | 713,730 |  | $ | 149,222 |  | $ | 9,965 |  | $ | 15,620 |  | $ | 11,684 |  | $ | 128,911 |  | $ | 2,457 |  | $ | 1,703,592 |
Residential Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 631,339 |  | $ | 694,104 |  | $ | 518,705 |  | $ | 192,431 |  | $ | 107,675 |  | $ | 918,918 |  | $ | 3,147 |  | $ | — |  | $ | 3,066,319 |
Nonperforming |  | 1,058 |  |  | 2,434 |  |  | 716 |  |  | 1,196 |  |  | 2,080 |  |  | 18,802 |  |  | — |  |  | — |  |  | 26,286 |
Total Residential Mortgage | $ | 632,397 |  | $ | 696,538 |  | $ | 519,421 |  | $ | 193,627 |  | $ | 109,755 |  | $ | 937,720 |  | $ | 3,147 |  | $ | — |  | $ | 3,092,605 |
Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 103,742 |  | $ | 58,248 |  | $ | 45,641 |  | $ | 62,715 |  | $ | 41,559 |  | $ | 40,489 |  | $ | 1,212,958 |  | $ | 4,834 |  | $ | 1,570,186 |
Nonperforming |  | 193 |  |  | 198 |  |  | 228 |  |  | 758 |  |  | 381 |  |  | 3,341 |  |  | 459 |  |  | 1,603 |  |  | 7,161 |
Total Consumer | $ | 103,935 |  | $ | 58,446 |  | $ | 45,869 |  | $ | 63,473 |  | $ | 41,940 |  | $ | 43,830 |  | $ | 1,213,417 |  | $ | 6,437 |  | $ | 1,577,347 |
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 at March 31, 2023 and December 31, 2022 were $3.8 million and $4.9 million, respectively, of consumer loans secured by single family residential real estate that were in process of foreclosure. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $0.4 million of foreclosed single family residential properties in other real estate owned at both March 31, 2023 and December 31, 2022. Loans Held for Sale Loans held for sale totaled $23.4 million and $26.4 million at March 31, 2023 and December 31, 2022, respectively. Loans held for sale is composed primarily of residential mortgage loans originated for sale in the secondary market. At March 31, 2023, residential mortgage loans carried at the fair value option totaled $14.9 million with an unpaid principal balance of $14.6 million. At December 31, 2022, residential mortgage loans carried at the fair value option totaled $10.8 million with an unpaid principal balance of $10.6 million. All other loans held for sale are carried at the lower of cost or market.

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2196816 + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration