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Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2025
Receivables [Abstract] |
Allowance for Credit Losses | Allowance for Credit Losses (In Thousands) 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 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 and such losses are reasonably quantified. 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, 2024. 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 March 31, 2025 and December 31, 2024, the Company had accrued interest receivable for loans of $53,317 and $54,395, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. 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 March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 38,527 |  |  | $ | 15,126 |  |  | $ | 47,761 |  |  | $ | 90,204 |  |  | $ | 3,368 |  |  | $ | 6,770 |  |  | $ | 201,756 |
Charge-offs | (94) |  |  | — |  |  | (309) |  |  | (461) |  |  | — |  |  | (265) |  |  | (1,129) |
Recoveries | 958 |  |  | — |  |  | 33 |  |  | 6 |  |  | 9 |  |  | 248 |  |  | 1,254 |
Net recoveries (charge-offs) | 864 |  |  | — |  |  | (276) |  |  | (455) |  |  | 9 |  |  | (17) |  |  | 125 |
(Recovery of) provision for credit losses on loans | (950) |  |  | 1,435 |  |  | 3,226 |  |  | (1,669) |  |  | 267 |  |  | (259) |  |  | 2,050 |
Ending balance | $ | 38,441 |  |  | $ | 16,561 |  |  | $ | 50,711 |  |  | $ | 88,080 |  |  | $ | 3,644 |  |  | $ | 6,494 |  |  | $ | 203,931 |
Period-End Amount Allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 4,522 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,922 |  |  | $ | 2,053 |  |  | $ | 270 |  |  | $ | 15,767 |
Collectively evaluated | 33,919 |  |  | 16,561 |  |  | 50,711 |  |  | 79,158 |  |  | 1,591 |  |  | 6,224 |  |  | 188,164 |
Ending balance | $ | 38,441 |  |  | $ | 16,561 |  |  | $ | 50,711 |  |  | $ | 88,080 |  |  | $ | 3,644 |  |  | $ | 6,494 |  |  | $ | 203,931 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 11,132 |  |  | $ | 2,434 |  |  | $ | 8,750 |  |  | $ | 46,593 |  |  | $ | 3,946 |  |  | $ | 270 |  |  | $ | 73,125 |
Collectively evaluated | 1,877,448 |  |  | 1,088,428 |  |  | 3,574,330 |  |  | 6,273,527 |  |  | 81,466 |  |  | 87,269 |  |  | 12,982,468 |
Ending balance | $ | 1,888,580 |  |  | $ | 1,090,862 |  |  | $ | 3,583,080 |  |  | $ | 6,320,120 |  |  | $ | 85,412 |  |  | $ | 87,539 |  |  | $ | 13,055,593 |
Nonaccruing loans with no allowance for credit losses | $ | 122 |  |  | $ | 2,434 |  |  | $ | 6,418 |  |  | $ | 11,998 |  |  | $ | 589 |  |  | $ | — |  |  | $ | 21,561 |
| Commercial |  | Real Estate - Construction |  | Real Estate - 1-4 Family Mortgage |  | Real Estate - Commercial Mortgage |  | Lease Financing |  | Installment Loans to Individuals |  | Total
Three Months Ended March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 43,980 |  |  | $ | 18,612 |  |  | $ | 47,283 |  |  | $ | 77,020 |  |  | $ | 2,515 |  |  | $ | 9,168 |  |  | $ | 198,578 |
Charge-offs | (349) |  |  | — |  |  | (82) |  |  | — |  |  | — |  |  | (479) |  |  | (910) |
Recoveries | 346 |  |  | — |  |  | 48 |  |  | 6 |  |  | 8 |  |  | 338 |  |  | 746 |
Net (charge-offs) recoveries | (3) |  |  | — |  |  | (34) |  |  | 6 |  |  | 8 |  |  | (141) |  |  | (164) |
Provision for (recovery of) credit losses on loans | 1,944 |  |  | (1,295) |  |  | 317 |  |  | 1,699 |  |  | 31 |  |  | (58) |  |  | 2,638 |
Ending balance | $ | 45,921 |  |  | $ | 17,317 |  |  | $ | 47,566 |  |  | $ | 78,725 |  |  | $ | 2,554 |  |  | $ | 8,969 |  |  | $ | 201,052 |
Period-End Amount Allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 9,104 |  |  | $ | — |  |  | $ | — |  |  | $ | 573 |  |  | $ | — |  |  | $ | 270 |  |  | $ | 9,947 |
Collectively evaluated | 36,817 |  |  | 17,317 |  |  | 47,566 |  |  | 78,152 |  |  | 2,554 |  |  | 8,699 |  |  | 191,105 |
Ending balance | $ | 45,921 |  |  | $ | 17,317 |  |  | $ | 47,566 |  |  | $ | 78,725 |  |  | $ | 2,554 |  |  | $ | 8,969 |  |  | $ | 201,052 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 15,861 |  |  | $ | — |  |  | $ | 7,327 |  |  | $ | 13,033 |  |  | $ | — |  |  | $ | 270 |  |  | $ | 36,491 |
Collectively evaluated | 1,853,547 |  |  | 1,243,535 |  |  | 3,421,959 |  |  | 5,740,197 |  |  | 107,474 |  |  | 97,322 |  |  | 12,464,034 |
Ending balance | $ | 1,869,408 |  |  | $ | 1,243,535 |  |  | $ | 3,429,286 |  |  | $ | 5,753,230 |  |  | $ | 107,474 |  |  | $ | 97,592 |  |  | $ | 12,500,525 |
Nonaccruing loans with no allowance for credit losses | $ | 157 |  |  | $ | — |  |  | $ | 7,328 |  |  | $ | 10,130 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,615 |
The Company recorded a provision for credit losses on loans of $2,050 during the first quarter of 2025, as compared to a provision for credit losses on loans of $2,638 recorded in the first quarter of 2024. The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. The provision for credit losses on loans of $2,050 in the first quarter of 2025 was primarily driven by loan growth and changes in credit metrics that influence the Company’s expectations of future losses, including but not limited to the balance of nonperforming loans, underlying collateral values, and historical levels of charge-offs, all considered in the context of the existing balance of the allowance for credit losses. 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, 2024. The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended March 31, | 2025 | 2024
Allowance for credit losses on unfunded loan commitments: |  |
Beginning balance | $ | 14,943 |  | $ | 16,918 |
Provision for (recovery of) credit losses on unfunded loan commitments | 2,700 |  | (200) |
Ending balance | $ | 17,643 |  | $ | 16,718 |
The Company recorded a provision for credit losses on unfunded loan commitments of $2,700 during the first quarter of 2025, as compared to a recovery of credit losses on unfunded loan commitments of $200 recorded in the first quarter of 2024. The $2,700 provision for credit losses on unfunded commitments in the first quarter of 2025 was primarily driven by an increase in real estate construction commitments.

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