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Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2021
Receivables [Abstract] |
Allowance for Credit Losses | Allowance for Credit Losses (In Thousands) The following is a summary of total non purchased and purchased loans as of the dates presented:
| June 30, 2021 |  | December 31, 2020
Commercial, financial, agricultural | $ | 1,634,633 |  |  | $ | 2,536,984 |
Lease financing | 78,028 |  |  | 80,022 |
Real estate – construction: |  |  |
Residential | 277,163 |  |  | 246,673 |
Commercial | 774,196 |  |  | 611,431 |
Total real estate – construction | 1,051,359 |  |  | 858,104 |
Real estate – 1-4 family mortgage: |  |  |
Primary | 1,790,522 |  |  | 1,750,951 |
Home equity | 489,933 |  |  | 513,160 |
Rental/investment | 297,341 |  |  | 296,364 |
Land development | 124,295 |  |  | 137,833 |
Total real estate – 1-4 family mortgage | 2,702,091 |  |  | 2,698,308 |
Real estate – commercial mortgage: |  |  |
Owner-occupied | 1,663,191 |  |  | 1,657,806 |
Non-owner occupied | 2,742,029 |  |  | 2,747,467 |
Land development | 124,949 |  |  | 149,579 |
Total real estate – commercial mortgage | 4,530,169 |  |  | 4,554,852 |
Installment loans to individuals | 156,987 |  |  | 209,537 |
Gross loans | 10,153,267 |  |  | 10,937,807 |
Unearned income | (4,025) |  |  | (4,160) |
Loans, net of unearned income | 10,149,242 |  |  | 10,933,647 |
Allowance for credit losses on loans | (172,354) |  |  | (176,144) |
Net loans | $ | 9,976,888 |  |  | $ | 10,757,503 |
Allowance for Credit Losses on Loans The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio and is maintained at a level believed adequate by management to absorb credit losses inherent in the entire loan portfolio. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis. Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets. The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio. As of June 30, 2021 and December 31, 2020, the Company had accrued interest receivable for loans of $48,774 and $56,459, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. Although the Company made the election to exclude accrued interest from the measurement of the allowance for credit losses, the Company did have an allowance for credit losses on interest deferred as part of the loan deferral program of $1,367 and $1,500, respectively, as of June 30, 2021 and December 31, 2020. The decrease in the balance during the first half of 2021 is due to the charge-off of deferred interest balances. The following tables provide a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:
| Commercial |  | Real Estate - Construction |  | Real Estate - 1-4 Family Mortgage |  | Real Estate - Commercial Mortgage |  | Lease Financing |  | Installment Loans to Individuals |  | Total
Three Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 37,592 |  |  | $ | 14,977 |  |  | $ | 31,694 |  |  | $ | 76,225 |  |  | $ | 1,546 |  |  | $ | 11,072 |  |  | $ | 173,106 |
Charge-offs | (1,184) |  |  | — |  |  | (152) |  |  | (171) |  |  | — |  |  | (1,347) |  |  | (2,854) |
Recoveries | 233 |  |  | — |  |  | 401 |  |  | 143 |  |  | 14 |  |  | 1,311 |  |  | 2,102 |
Net (charge-offs) recoveries | (951) |  |  | — |  |  | 249 |  |  | (28) |  |  | 14 |  |  | (36) |  |  | (752) |
Provision for credit losses on loans | 353 |  |  | 752 |  |  | (640) |  |  | (1,304) |  |  | (49) |  |  | 888 |  |  | — |
Ending balance | $ | 36,994 |  |  | $ | 15,729 |  |  | $ | 31,303 |  |  | $ | 74,893 |  |  | $ | 1,511 |  |  | $ | 11,924 |  |  | $ | 172,354 |
Six Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 39,031 |  |  | $ | 16,047 |  |  | $ | 32,165 |  |  | $ | 76,127 |  |  | $ | 1,624 |  |  | $ | 11,150 |  |  | $ | 176,144 |
Charge-offs | (4,682) |  |  | (52) |  |  | (253) |  |  | (232) |  |  | — |  |  | (3,005) |  |  | (8,224) |
Recoveries | 522 |  |  | 13 |  |  | 662 |  |  | 314 |  |  | 25 |  |  | 2,898 |  |  | 4,434 |
Net (charge-offs) recoveries | (4,160) |  |  | (39) |  |  | 409 |  |  | 82 |  |  | 25 |  |  | (107) |  |  | (3,790) |
Provision for credit losses on loans | 2,123 |  |  | (279) |  |  | (1,271) |  |  | (1,316) |  |  | (138) |  |  | 881 |  |  | — |
Ending balance | $ | 36,994 |  |  | $ | 15,729 |  |  | $ | 31,303 |  |  | $ | 74,893 |  |  | $ | 1,511 |  |  | $ | 11,924 |  |  | $ | 172,354 |
Period-End Amount Allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 9,121 |  |  | $ | — |  |  | $ | 228 |  |  | $ | 4,207 |  |  | $ | — |  |  | $ | 612 |  |  | $ | 14,168 |
Collectively evaluated | 27,873 |  |  | 15,729 |  |  | 31,075 |  |  | 70,686 |  |  | 1,511 |  |  | 11,312 |  |  | 158,186 |
Ending balance | $ | 36,994 |  |  | $ | 15,729 |  |  | $ | 31,303 |  |  | $ | 74,893 |  |  | $ | 1,511 |  |  | $ | 11,924 |  |  | $ | 172,354 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 14,409 |  |  | $ | — |  |  | $ | 5,017 |  |  | $ | 20,810 |  |  | $ | — |  |  | $ | 636 |  |  | $ | 40,872 |
Collectively evaluated | 1,620,224 |  |  | 1,051,359 |  |  | 2,697,074 |  |  | 4,509,359 |  |  | 74,003 |  |  | 156,351 |  |  | 10,108,370 |
Ending balance | $ | 1,634,633 |  |  | $ | 1,051,359 |  |  | $ | 2,702,091 |  |  | $ | 4,530,169 |  |  | $ | 74,003 |  |  | $ | 156,987 |  |  | $ | 10,149,242 |
Nonaccruing loans with no allowance for credit losses | $ | 2,826 |  |  | $ | — |  |  | $ | 2,841 |  |  | $ | 4,953 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 10,630 |
| Commercial |  | Real Estate - Construction |  | Real Estate - 1-4 Family Mortgage |  | Real Estate - Commercial Mortgage |  | Lease Financing |  | Installment Loans to Individuals |  | Total
Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 25,937 |  |  | $ | 10,924 |  |  | $ | 27,320 |  |  | $ | 44,237 |  |  | $ | 1,588 |  |  | $ | 10,179 |  |  | $ | 120,185 |
Charge-offs | (1,156) |  |  | (532) |  |  | (142) |  |  | — |  |  | — |  |  | (1,736) |  |  | (3,566) |
Recoveries | 108 |  |  | — |  |  | 48 |  |  | 41 |  |  | 5 |  |  | 1,666 |  |  | 1,868 |
Net (charge-offs) recoveries | (1,048) |  |  | (532) |  |  | (94) |  |  | 41 |  |  | 5 |  |  | (70) |  |  | (1,698) |
Provision for credit losses on loans | 5,796 |  |  | 2,146 |  |  | 2,175 |  |  | 15,783 |  |  | 219 |  |  | 781 |  |  | 26,900 |
Ending balance | $ | 30,685 |  |  | $ | 12,538 |  |  | $ | 29,401 |  |  | $ | 60,061 |  |  | $ | 1,812 |  |  | $ | 10,890 |  |  | $ | 145,387 |
Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 10,658 |  |  | $ | 5,029 |  |  | $ | 9,814 |  |  | $ | 24,990 |  |  | $ | 910 |  |  | $ | 761 |  |  | $ | 52,162 |
Impact of the adoption of ASC 326 | 11,351 |  |  | 3,505 |  |  | 14,314 |  |  | 4,293 |  |  | 521 |  |  | 8,500 |  |  | 42,484 |
Charge-offs | (1,549) |  |  | (532) |  |  | (363) |  |  | (2,047) |  |  | — |  |  | (4,424) |  |  | (8,915) |
Recoveries | 298 |  |  | — |  |  | 136 |  |  | 1,740 |  |  | 10 |  |  | 4,222 |  |  | 6,406 |
Net (charge-offs) recoveries | (1,251) |  |  | (532) |  |  | (227) |  |  | (307) |  |  | 10 |  |  | (202) |  |  | (2,509) |
Provision for credit losses on loans | 9,927 |  |  | 4,536 |  |  | 5,500 |  |  | 31,085 |  |  | 371 |  |  | 1,831 |  |  | 53,250 |
Ending balance | $ | 30,685 |  |  | $ | 12,538 |  |  | $ | 29,401 |  |  | $ | 60,061 |  |  | $ | 1,812 |  |  | $ | 10,890 |  |  | $ | 145,387 |
Period-End Amount Allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 3,882 |  |  | $ | — |  |  | $ | 378 |  |  | $ | 550 |  |  | $ | — |  |  | $ | 270 |  |  | $ | 5,080 |
Collectively evaluated | 26,803 |  |  | 12,538 |  |  | 29,023 |  |  | 59,511 |  |  | 1,812 |  |  | 10,620 |  |  | 140,307 |
Ending balance | $ | 30,685 |  |  | $ | 12,538 |  |  | $ | 29,401 |  |  | $ | 60,061 |  |  | $ | 1,812 |  |  | $ | 10,890 |  |  | $ | 145,387 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 9,736 |  |  | $ | — |  |  | $ | 5,142 |  |  | $ | 7,883 |  |  | $ | — |  |  | $ | 626 |  |  | $ | 23,387 |
Collectively evaluated | 2,631,862 |  |  | 791,108 |  |  | 2,783,371 |  |  | 4,402,870 |  |  | 80,779 |  |  | 283,927 |  |  | 10,973,917 |
Ending balance | $ | 2,641,598 |  |  | $ | 791,108 |  |  | $ | 2,788,513 |  |  | $ | 4,410,753 |  |  | $ | 80,779 |  |  | $ | 284,553 |  |  | $ | 10,997,304 |
Nonaccruing loans with no allowance for credit losses | $ | 720 |  |  | $ | — |  |  | $ | 2,503 |  |  | $ | 3,910 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 7,135 |
The Company did not record a provision for credit losses during the second quarter or first half of 2021, as compared to a provision for credit losses on loans of $26,900 in the second quarter of 2020 and $53,250 in the first half of 2020. The Company’s allowance for credit loss model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. Based on the continual improvements in these forecasts over the last few quarters, the Company determined that additional provisioning during the second quarter of 2021 was not necessary. Allowance for Credit Losses on Unfunded Loan Commitments The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The following tables provide a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended June 30, | 2021 | 2020
Allowance for credit losses on unfunded loan commitments: |  |
Beginning balance | $ | 20,535 |  | $ | 14,735 |
Provision for credit losses on unfunded loan commitments (included in other noninterest expense) | — |  | 2,600 |
Ending balance | $ | 20,535 |  | $ | 17,335 |
Six Months Ended June 30, | 2021 | 2020
Allowance for credit losses on unfunded loan commitments: |  |
Beginning balance | $ | 20,535 |  | $ | 946 |
Impact of the adoption of ASC 326 | — |  | 10,389 |
Provision for credit losses on unfunded loan commitments (included in other noninterest expense) | — |  | 6,000 |
Ending balance | $ | 20,535 |  | $ | 17,335 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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