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Loans and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 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; and the metropolitan areas of Nashville, Tennessee and 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 $118.9 million and $100.2 million at September 30, 2023 and December 31, 2022, respectively. The following table presents loans, net of unearned income, by portfolio class at September 30, 2023 and December 31, 2022.
|  | September 30, |  |  | December 31, |
($ in thousands) |  | 2023 |  |  | 2022 |
Commercial non-real estate |  | $ | 10,075,585 |  |  | $ | 10,146,453 |
Commercial real estate - owner occupied |  |  | 3,081,327 |  |  |  | 3,033,058 |
Total commercial and industrial |  |  | 13,156,912 |  |  |  | 13,179,511 |
Commercial real estate - income producing |  |  | 4,027,553 |  |  |  | 3,560,991 |
Construction and land development |  |  | 1,614,846 |  |  |  | 1,703,592 |
Residential mortgages |  |  | 3,721,106 |  |  |  | 3,092,605 |
Consumer |  |  | 1,463,262 |  |  |  | 1,577,347 |
Total loans |  | $ | 23,983,679 |  |  | $ | 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. LIBOR Transition Effective July 1, 2023, the London Interbank Offered Rate (“LIBOR”) is no longer a representative rate for the overnight, one-month, three-month, six-month, and twelve-month settings. The Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”), signed into law in March of 2022, offers a federal solution for transitioning legacy instruments that lack sufficient provisions addressing LIBOR’s cessation by outlining a uniform process to govern the transition from LIBOR to a replacement rate. The Federal Reserve Bank Board, authorized under the LIBOR Act to issue appropriate and necessary regulations to administer and carry out the purposes of the Act, issued final regulations which became effective on February 27, 2023. Under the LIBOR Act and the related regulations, the Chicago Mercantile Exchange Term Secured Overnight Financing Rate (“CME Term SOFR”) plus a tenor spread adjustment was designated as the replacement reference rate for instruments that previously referenced LIBOR. Effective July 3, 2023, approximately $3.1 billion of variable rate loans tied to LIBOR were transitioned in accordance with the statutory framework established by the Federal Reserve, with the transition rate to be utilized upon the next reset period, in a manner that is consistent with industry practice. The transition did not have a material financial impact on the Company’s operating results for the three or nine months ended September 30, 2023. Allowance for Credit Losses The calculation of the allowance for credit losses is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated. The allowance for credit losses was developed using multiple Moody’s Analytics (“Moody’s") macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period. The following tables present activity in the allowance for credit losses (ACL) by portfolio class for the nine months ended September 30, 2023 and 2022, as well as the corresponding recorded investment in loans at the end of each period.
|  |  | Commercial |  | Total |  | Commercial |  |  |  |  |  |  |  |  |
| Commercial |  | real estate- |  | commercial |  | real estate- |  | Construction |  |  |  |  |  |  |
| non-real |  | owner |  | and |  | income |  | and land |  | Residential |  |  |  |  |
($ in thousands) | estate |  | occupied |  | industrial |  | producing |  | development |  | mortgages |  | Consumer |  | Total |
| Nine Months Ended September 30, 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 |  | (44,837 | ) |  | — |  |  | (44,837 | ) |  | (73 | ) |  | (72 | ) |  | (53 | ) |  | (10,787 | ) |  | (55,822 | )
Recoveries |  | 4,419 |  |  | 447 |  |  | 4,866 |  |  | 12 |  |  | 10 |  |  | 888 |  |  | 2,701 |  |  | 8,477 |
Net provision for loan losses |  | 43,622 |  |  | (7,152 | ) |  | 36,470 |  |  | 2,441 |  |  | (2,213 | ) |  | 3,563 |  |  | 5,586 |  |  | 45,847 |
Ending balance - allowance for loan losses | $ | 99,665 |  | $ | 41,579 |  | $ | 141,244 |  | $ | 74,341 |  | $ | 28,223 |  | $ | 36,862 |  | $ | 25,621 |  | $ | 306,291 |
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 |  | 270 |  |  | 10 |  |  | 280 |  |  | 39 |  |  | (3,874 | ) |  | 4 |  |  | (145 | ) |  | (3,696 | )
Ending balance - reserve for unfunded lending commitments |  | 5,254 |  |  | 312 |  |  | 5,566 |  |  | 1,434 |  |  | 21,236 |  |  | 35 |  |  | 1,342 |  |  | 29,613 |
Total allowance for credit losses | $ | 104,919 |  | $ | 41,891 |  | $ | 146,810 |  | $ | 75,775 |  | $ | 49,459 |  | $ | 36,897 |  | $ | 26,963 |  | $ | 335,904 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 1,666 |  | $ | — |  | $ | 1,666 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,666 |
Collectively evaluated |  | 97,999 |  |  | 41,579 |  |  | 139,578 |  |  | 74,341 |  |  | 28,223 |  |  | 36,862 |  |  | 25,621 |  |  | 304,625 |
Allowance for loan losses | $ | 99,665 |  | $ | 41,579 |  | $ | 141,244 |  | $ | 74,341 |  | $ | 28,223 |  | $ | 36,862 |  | $ | 25,621 |  | $ | 306,291 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Collectively evaluated |  | 5,254 |  |  | 312 |  |  | 5,566 |  |  | 1,434 |  |  | 21,236 |  |  | 35 |  |  | 1,342 |  |  | 29,613 |
Reserve for unfunded lending commitments: | $ | 5,254 |  | $ | 312 |  | $ | 5,566 |  | $ | 1,434 |  | $ | 21,236 |  | $ | 35 |  | $ | 1,342 |  | $ | 29,613 |
Total allowance for credit losses | $ | 104,919 |  | $ | 41,891 |  | $ | 146,810 |  | $ | 75,775 |  | $ | 49,459 |  | $ | 36,897 |  | $ | 26,963 |  | $ | 335,904 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 17,658 |  | $ | — |  | $ | 17,658 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 17,658 |
Collectively evaluated |  | 10,057,927 |  |  | 3,081,327 |  |  | 13,139,254 |  |  | 4,027,553 |  |  | 1,614,846 |  |  | 3,721,106 |  |  | 1,463,262 |  |  | 23,966,021 |
Total loans | $ | 10,075,585 |  | $ | 3,081,327 |  | $ | 13,156,912 |  | $ | 4,027,553 |  | $ | 1,614,846 |  | $ | 3,721,106 |  | $ | 1,463,262 |  | $ | 23,983,679 |
In arriving at the September 30, 2023 allowance for credit losses, the Company weighted the September 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 September 2023 baseline scenario maintains a somewhat 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. The baseline forecast assumes the Federal Funds rate has reached its terminal value in the rate hiking cycle, with rate cuts expected to begin in June 2024. This forecast includes sustained economic growth with forecasted annual GDP growth of 2.1%, 1.4% and 1.9% in 2023, 2024 and 2025, respectively, and only a modest increase in unemployment, forecasted at 3.7%, 4.1% and 4.2% for 2023, 2024 and 2025, respectively. This forecast scenario also assumes the 10-year U.S. treasury rate reached its recent high in the second quarter of 2023, and will continue to ease slightly through 2025. 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 as more likely than the baseline at 60%. The S-2 scenario assumes that geopolitical conflict creates longer and wider supply chain disruption, keeps inflation elevated and assumes the disruption in the financial sector results in broader tightening of credit standards. This leads to a mild recession that starts in the fourth quarter of 2023 lasting three quarters, with the stock market contracting 22%. The S-2 scenario includes forecasted annual GDP growth of 2.1% in 2023, but contracts to negative 0.2% in 2024 before returning to 2.5% in 2025. Unemployment is forecasted to increase from current levels to 3.9%, 6.1% and 4.9% 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. The modest decline in the allowance for credit loss for the nine months ended September 30, 2023 reflects a relatively stable economic outlook, with shifts between portfolios and a relatively modest decline in reserve coverage to total loans.
|  |  | 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 |
| Nine Months Ended September 30, 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 |  | (6,366 | ) |  | (946 | ) |  | (7,312 | ) |  | (1,066 | ) |  | (3 | ) |  | (102 | ) |  | (9,464 | ) |  | (17,947 | )
Recoveries |  | 9,460 |  |  | 606 |  |  | 10,066 |  |  | 878 |  |  | 132 |  |  | 1,463 |  |  | 4,479 |  |  | 17,018 |
Net provision for loan losses |  | (4,176 | ) |  | (5,076 | ) |  | (9,252 | ) |  | (30,458 | ) |  | 4,516 |  |  | (1,037 | ) |  | 1,211 |  |  | (35,020 | )
Ending balance - allowance for loan losses | $ | 94,806 |  | $ | 48,017 |  | $ | 142,823 |  | $ | 77,412 |  | $ | 26,747 |  | $ | 30,947 |  | $ | 28,187 |  | $ | 306,116 |
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 |  | 238 |  |  | 10 |  |  | 248 |  |  | (205 | ) |  | 3,602 |  |  | (5 | ) |  | 494 |  |  | 4,134 |
Ending balance - reserve for unfunded lending commitments |  | 4,760 |  |  | 333 |  |  | 5,093 |  |  | 1,489 |  |  | 25,509 |  |  | 17 |  |  | 1,360 |  |  | 33,468 |
Total allowance for credit losses | $ | 99,566 |  | $ | 48,350 |  | $ | 147,916 |  | $ | 78,901 |  | $ | 52,256 |  | $ | 30,964 |  | $ | 29,547 |  | $ | 339,584 |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 71 |  | $ | 31 |  | $ | 102 |  | $ | 17 |  | $ | 19 |  | $ | 276 |  | $ | 102 |  | $ | 516 |
Collectively evaluated |  | 94,735 |  |  | 47,986 |  |  | 142,721 |  |  | 77,395 |  |  | 26,728 |  |  | 30,671 |  |  | 28,085 |  |  | 305,600 |
Allowance for loan losses | $ | 94,806 |  | $ | 48,017 |  | $ | 142,823 |  | $ | 77,412 |  | $ | 26,747 |  | $ | 30,947 |  | $ | 28,187 |  | $ | 306,116 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 3 |  | $ | — |  | $ | 3 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 3 |
Collectively evaluated |  | 4,757 |  |  | 333 |  |  | 5,090 |  |  | 1,489 |  |  | 25,509 |  |  | 17 |  |  | 1,360 |  |  | 33,465 |
Reserve for unfunded lending commitments: | $ | 4,760 |  | $ | 333 |  | $ | 5,093 |  | $ | 1,489 |  | $ | 25,509 |  | $ | 17 |  | $ | 1,360 |  | $ | 33,468 |
Total allowance for credit losses | $ | 99,566 |  | $ | 48,350 |  | $ | 147,916 |  | $ | 78,901 |  | $ | 52,256 |  | $ | 30,964 |  | $ | 29,547 |  | $ | 339,584 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 1,282 |  | $ | 929 |  | $ | 2,211 |  | $ | 1,270 |  | $ | 118 |  | $ | 3,680 |  | $ | 527 |  | $ | 7,806 |
Collectively evaluated |  | 9,904,145 |  |  | 3,032,204 |  |  | 12,936,349 |  |  | 3,685,270 |  |  | 1,541,139 |  |  | 2,840,043 |  |  | 1,574,978 |  |  | 22,577,779 |
Total loans | $ | 9,905,427 |  | $ | 3,033,133 |  | $ | 12,938,560 |  | $ | 3,686,540 |  | $ | 1,541,257 |  | $ | 2,843,723 |  | $ | 1,575,505 |  | $ | 22,585,585 |
The release of credit reserves across most portfolios during the nine months ended September 30, 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 September 30, 2022, the Company weighted the baseline economic forecast at 25% and the downside slower near-term growth scenario S-2 at 75%. 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.
|  |  | September 30, 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 |  | $ |  | 22,108 |  |  | $ |  | 15,413 |  |  | $ |  | 4,020 |  |  | $ |  | 941 |
Commercial real estate - owner occupied |  |  |  | 2,432 |  |  |  |  | — |  |  |  |  | 1,461 |  |  |  |  | 692 |
Total commercial and industrial |  |  |  | 24,540 |  |  |  |  | 15,413 |  |  |  |  | 5,481 |  |  |  |  | 1,633 |
Commercial real estate - income producing |  |  |  | 344 |  |  |  |  | — |  |  |  |  | 1,240 |  |  |  |  | 1,174 |
Construction and land development |  |  |  | 742 |  |  |  |  | — |  |  |  |  | 309 |  |  |  |  | — |
Residential mortgages |  |  |  | 26,905 |  |  |  |  | — |  |  |  |  | 25,269 |  |  |  |  | 1,884 |
Consumer |  |  |  | 7,800 |  |  |  |  | — |  |  |  |  | 6,692 |  |  |  |  | — |
Total loans |  | $ |  | 60,331 |  |  | $ |  | 15,413 |  |  | $ |  | 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 $20 thousand at September 30, 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 $28.9 million at September 30, 2023 and total TDRs were $4.5 million at December 31, 2022. At September 30, 2023 and December 31, 2022, the Company had no unfunded commitments to borrowers whose loan terms have been modified as a reportable MEFD or TDR, respectively. The tables below provides detail by portfolio class for reportable MEFDs entered into during the three and nine months ended September 30, 2023. Modified facilities are reflected only once in each table based on the type of modification or combinaion of modification.
|  | Three Months Ended September 30, 2023 |
|  | Term extension |  |  | Payment delay |  |  | Term extensions and payment delay |  |  | Other(1) |
($ in thousands) |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |
Commercial non-real estate |  | $ | 5,873 |  |  |  | 0.06 | % |  | $ | — |  |  |  | — |  |  | $ | 4,431 |  |  |  | 0.04 | % |  | $ | — |  |  |  | — |
Commercial real estate - owner occupied |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,035 |  |  |  | 0.55 | % |  |  | — |  |  |  | — |
Total commercial and industrial |  |  | 5,873 |  |  |  | 0.04 | % |  |  | — |  |  |  | — |  |  |  | 21,466 |  |  |  | 0.16 | % |  |  |  |  |  | — |
Commercial real estate - income producing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction and land development |  |  | 86 |  |  |  | 0.01 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgages |  |  | 120 |  |  |  | 0.00 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 66 |  |  |  | 0.00 | %
Consumer |  |  | 62 |  |  |  | 0.00 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total reportable modified loans |  | $ | 6,141 |  |  |  | 0.03 | % |  | $ | — |  |  |  | — |  |  | $ | 21,466 |  |  |  | 0.09 | % |  | $ | 66 |  |  |  | 0.00 | %
(1) Includes interest rate reduction and other than insignificant payment delays.
|  | Nine Months Ended September 30, 2023 |
|  | Term extension |  |  | Payment delay |  |  | Term extensions and payment delay |  |  | Other(1) |
($ in thousands) |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |  |  | Balance |  |  | Percentage of portfolio |
Commercial non-real estate |  | $ | 6,969 |  |  |  | 0.07 | % |  | $ | 100 |  |  |  | 0.00 | % |  | $ | 4,431 |  |  |  | 0.04 | % |  | $ | — |  |  |  | — |
Commercial real estate - owner occupied |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,035 |  |  |  | 0.55 | % |  |  | — |  |  |  | — |
Total commercial and industrial |  |  | 6,969 |  |  |  | 0.05 | % |  |  | 100 |  |  |  | 0.00 | % |  |  | 21,466 |  |  |  | 0.16 | % |  |  | — |  |  |  | — |
Commercial real estate - income producing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction and land development |  |  | 86 |  |  |  | 0.01 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgages |  |  | 120 |  |  |  | 0.00 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 66 |  |  |  | 0.00 | %
Consumer |  |  | 62 |  |  |  | 0.00 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total reportable modified loans |  | $ | 7,237 |  |  |  | 0.03 | % |  | $ | 100 |  |  |  | 0.00 | % |  | $ | 21,466 |  |  |  | 0.09 | % |  | $ | 66 |  |  |  | 0.00 | %
(1) Includes interest rate reduction and other than insignificant payment delays. Reportable modifications to borrowers experiencing financial difficulty during the both the three and nine months ended September 30, 2023 consisted of weighted average term extensions totaling approximately eight months for commercial, fifteen years for residential mortgage and five years for consumer. The weighted average term of other than insignificant payment delays was four months. Reported term extensions and payment delays are considered more than insignificant if they exceeded six months when considering other modifications made in the past twelve months. The table below presents the aging analysis of reportable modifications to borrowers experiencing financial difficulty by portfolio class at September 30, 2023.
September 30, 2023 |  | 30-59 days past due |  |  | 60-89 days past due |  |  | Greater than 90 days past due |  |  | Total past due |  |  | Current |  | Total reportable modified Loans |
(in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate |  | $ | 4,718 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,718 |  |  | $ | 6,782 |  | $ | 11,500 |
Commercial real estate - owner occupied |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,035 |  |  | 17,035 |
Total commercial and industrial |  |  | 4,718 |  |  |  | — |  |  |  | — |  |  |  | 4,718 |  |  |  | 23,817 |  |  | 28,535 |
Commercial real estate - income producing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Construction and land development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 86 |  |  | 86 |
Residential mortgages |  |  | — |  |  |  | — |  |  |  | 20 |  |  |  | 20 |  |  |  | 166 |  |  | 186 |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 62 |  |  | 62 |
Total reportable modified loans |  | $ | 4,718 |  |  | $ | — |  |  | $ | 20 |  |  | $ | 4,738 |  |  | $ | 24,131 |  | $ | 28,869 |
There was one residential mortgage loan totaling $20 thousand with a reportable interest rate reduction and a term extension modification that had a post modification payment default during the three and nine month periods ended September 30, 2023. A payment default occurs if the loan is either 90 days or more delinquent or has been charged off as of the end of the period presented. Aging Analysis The tables below present the aging analysis of past due loans by portfolio class at September 30, 2023 and December 31, 2022.
September 30, 2023 | 30-59 days past due |  | 60-89 days past due |  | Greater than 90 days past due |  | Total past due |  | Current |  | Total Loans |  | Recorded investment > 90 days and still accruing |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate | $ | 20,712 |  | $ | 12,881 |  | $ | 13,522 |  | $ | 47,115 |  | $ | 10,028,470 |  | $ | 10,075,585 |  | $ | 1,476 |
Commercial real estate - owner occupied |  | 2,642 |  |  | 1,860 |  |  | 2,324 |  |  | 6,826 |  |  | 3,074,501 |  |  | 3,081,327 |  |  | 1,037 |
Total commercial and industrial |  | 23,354 |  |  | 14,741 |  |  | 15,846 |  |  | 53,941 |  |  | 13,102,971 |  |  | 13,156,912 |  |  | 2,513 |
Commercial real estate - income producing |  | 224 |  |  | 300 |  |  | 19,428 |  |  | 19,952 |  |  | 4,007,601 |  |  | 4,027,553 |  |  | 19,139 |
Construction and land development |  | 947 |  |  | 150 |  |  | 148 |  |  | 1,245 |  |  | 1,613,601 |  |  | 1,614,846 |  |  | 67 |
Residential mortgages |  | 9,419 |  |  | 8,834 |  |  | 17,878 |  |  | 36,131 |  |  | 3,684,975 |  |  | 3,721,106 |  |  | 85 |
Consumer |  | 12,504 |  |  | 3,612 |  |  | 6,029 |  |  | 22,145 |  |  | 1,441,117 |  |  | 1,463,262 |  |  | 2,366 |
Total | $ | 46,448 |  | $ | 27,637 |  | $ | 59,329 |  | $ | 133,414 |  | $ | 23,850,265 |  | $ | 23,983,679 |  | $ | 24,170 |
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 September 30, 2023 and December 31, 2022. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process.
|  | September 30, 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 |  | $ | 9,680,970 |  |  | $ | 2,983,077 |  |  | $ | 12,664,047 |  |  | $ | 3,862,680 |  |  | $ | 1,600,484 |  |  | $ | 18,127,211 |
Pass-Watch |  |  | 183,257 |  |  |  | 63,261 |  |  |  | 246,518 |  |  |  | 137,577 |  |  |  | 12,888 |  |  |  | 396,983 |
Special Mention |  |  | 50,128 |  |  |  | 8,512 |  |  |  | 58,640 |  |  |  | 2,258 |  |  |  | 702 |  |  |  | 61,600 |
Substandard |  |  | 161,230 |  |  |  | 26,477 |  |  |  | 187,707 |  |  |  | 25,038 |  |  |  | 772 |  |  |  | 213,517 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 10,075,585 |  |  | $ | 3,081,327 |  |  | $ | 13,156,912 |  |  | $ | 4,027,553 |  |  | $ | 1,614,846 |  |  | $ | 18,799,311 |
|  | 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 |
|  | September 30, 2023 |  |  | December 31, 2022 |
($ in thousands) |  | Residential mortgage |  |  | Consumer |  |  | Total |  |  | Residential mortgage |  |  | Consumer |  |  | Total |
Performing |  | $ | 3,694,201 |  |  | $ | 1,455,462 |  |  | $ | 5,149,663 |  |  | $ | 3,066,319 |  |  | $ | 1,570,186 |  |  | $ | 4,636,505 |
Nonperforming |  |  | 26,905 |  |  |  | 7,800 |  |  |  | 34,705 |  |  |  | 26,286 |  |  |  | 7,161 |  |  |  | 33,447 |
Total |  | $ | 3,721,106 |  |  | $ | 1,463,262 |  |  | $ | 5,184,368 |  |  | $ | 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 that 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 September 30, 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 nine months ended September 30, 2023.
| Term Loans |  |  |  | Revolving Loans |  |  |
September 30, 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 | $ | 1,316,709 |  | $ | 1,938,055 |  | $ | 1,205,406 |  | $ | 545,552 |  | $ | 435,870 |  | $ | 966,469 |  | $ | 3,184,264 |  | $ | 88,645 |  | $ | 9,680,970 |
Pass-Watch |  | 19,835 |  |  | 47,472 |  |  | 13,054 |  |  | 3,820 |  |  | 9,284 |  |  | 9,771 |  |  | 76,764 |  |  | 3,257 |  |  | 183,257 |
Special Mention |  | 649 |  |  | 9,324 |  |  | 14,251 |  |  | 5,553 |  |  | — |  |  | 866 |  |  | 12,342 |  |  | 7,143 |  |  | 50,128 |
Substandard |  | 37,553 |  |  | 39,124 |  |  | 8,327 |  |  | 8,971 |  |  | 4,256 |  |  | 11,236 |  |  | 45,698 |  |  | 6,065 |  |  | 161,230 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 1,374,746 |  | $ | 2,033,975 |  | $ | 1,241,038 |  | $ | 563,896 |  | $ | 449,410 |  | $ | 988,342 |  | $ | 3,319,068 |  | $ | 105,110 |  | $ | 10,075,585 |
Gross Charge-offs | $ | 7,019 |  | $ | 872 |  | $ | 468 |  | $ | 21,109 |  | $ | 81 |  | $ | 250 |  | $ | 12,299 |  | $ | 2,739 |  | $ | 44,837 |
Commercial Real Estate - Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 299,428 |  | $ | 681,918 |  | $ | 605,725 |  | $ | 509,454 |  | $ | 302,742 |  | $ | 538,751 |  | $ | 31,599 |  | $ | 13,460 |  | $ | 2,983,077 |
Pass-Watch |  | 18,697 |  |  | 3,547 |  |  | 6,788 |  |  | 2,803 |  |  | 9,007 |  |  | 21,563 |  |  | 856 |  |  | — |  |  | 63,261 |
Special Mention |  | 563 |  |  | — |  |  | 2,047 |  |  | 656 |  |  | — |  |  | 4,748 |  |  | 498 |  |  | — |  |  | 8,512 |
Substandard |  | 557 |  |  | 7,621 |  |  | 633 |  |  | 5,239 |  |  | 4,616 |  |  | 6,607 |  |  | 1,204 |  |  | — |  |  | 26,477 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 319,245 |  | $ | 693,086 |  | $ | 615,193 |  | $ | 518,152 |  | $ | 316,365 |  | $ | 571,669 |  | $ | 34,157 |  | $ | 13,460 |  | $ | 3,081,327 |
Gross Charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Commercial Real Estate - Income Producing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 359,078 |  | $ | 926,189 |  | $ | 1,031,726 |  | $ | 683,720 |  | $ | 349,978 |  | $ | 396,668 |  | $ | 65,636 |  | $ | 49,685 |  | $ | 3,862,680 |
Pass-Watch |  | 3,084 |  |  | 35,676 |  |  | 338 |  |  | 57,931 |  |  | 23,951 |  |  | 16,034 |  |  | 263 |  |  | 300 |  |  | 137,577 |
Special Mention |  | 159 |  |  | — |  |  | — |  |  | 354 |  |  | — |  |  | 1,745 |  |  | — |  |  | — |  |  | 2,258 |
Substandard |  | 20,780 |  |  | 1,931 |  |  | 289 |  |  | 1,245 |  |  | — |  |  | 793 |  |  | — |  |  | — |  |  | 25,038 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 383,101 |  | $ | 963,796 |  | $ | 1,032,353 |  | $ | 743,250 |  | $ | 373,929 |  | $ | 415,240 |  | $ | 65,899 |  | $ | 49,985 |  | $ | 4,027,553 |
Gross Charge-offs | $ | 73 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 73 |
Construction and Land Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 310,519 |  | $ | 744,624 |  | $ | 334,025 |  | $ | 59,938 |  | $ | 5,875 |  | $ | 20,227 |  | $ | 119,833 |  | $ | 5,443 |  | $ | 1,600,484 |
Pass-Watch |  | 8,429 |  |  | 2,011 |  |  | 1,409 |  |  | 93 |  |  | 648 |  |  | 212 |  |  | 86 |  |  | — |  |  | 12,888 |
Special Mention |  | 702 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 702 |
Substandard |  | — |  |  | 88 |  |  | 67 |  |  | — |  |  | 10 |  |  | 312 |  |  | 295 |  |  | — |  |  | 772 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 319,650 |  | $ | 746,723 |  | $ | 335,501 |  | $ | 60,031 |  | $ | 6,533 |  | $ | 20,751 |  | $ | 120,214 |  | $ | 5,443 |  | $ | 1,614,846 |
Gross Charge-offs | $ | — |  | $ | 7 |  | $ | 54 |  | $ | — |  | $ | — |  | $ | 11 |  | $ | — |  | $ | — |  | $ | 72 |
Residential Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 389,320 |  | $ | 791,881 |  | $ | 917,332 |  | $ | 496,414 |  | $ | 178,861 |  | $ | 916,803 |  | $ | 3,590 |  | $ | — |  | $ | 3,694,201 |
Nonperforming |  | 461 |  |  | 2,202 |  |  | 2,417 |  |  | 755 |  |  | 1,323 |  |  | 19,747 |  |  | — |  |  | — |  |  | 26,905 |
Total | $ | 389,781 |  | $ | 794,083 |  | $ | 919,749 |  | $ | 497,169 |  | $ | 180,184 |  | $ | 936,550 |  | $ | 3,590 |  | $ | — |  | $ | 3,721,106 |
Gross Charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 53 |  | $ | — |  | $ | — |  | $ | 53 |
Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 63,967 |  | $ | 66,584 |  | $ | 41,713 |  | $ | 31,708 |  | $ | 37,837 |  | $ | 47,188 |  | $ | 1,148,476 |  | $ | 17,989 |  | $ | 1,455,462 |
Nonperforming |  | 195 |  |  | 132 |  |  | 311 |  |  | 569 |  |  | 448 |  |  | 3,206 |  |  | 337 |  |  | 2,602 |  |  | 7,800 |
Total | $ | 64,162 |  | $ | 66,716 |  | $ | 42,024 |  | $ | 32,277 |  | $ | 38,285 |  | $ | 50,394 |  | $ | 1,148,813 |  | $ | 20,591 |  | $ | 1,463,262 |
Gross Charge-offs | $ | 289 |  | $ | 1,641 |  | $ | 967 |  | $ | 144 |  | $ | 415 |  | $ | 568 |  | $ | 5,543 |  | $ | 1,220 |  | $ | 10,787 |
| 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 | $ | 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 | $ | 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 | $ | 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 | $ | 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 | $ | 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 | $ | 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 September 30, 2023 and December 31, 2022 were $5.4 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 foreclosed single family residential properties in other real estate owned totaling $1.4 million at September 30, 2023 and $0.4 million at December 31, 2022. Loans Held for Sale Loans held for sale totaled $15.9 million and $26.4 million at September 30, 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 September 30, 2023, residential mortgage loans carried at the fair value option totaled $13.3 million with an unpaid principal balance of $13.1 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.

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