Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2020

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Activity In The Allowance For Loan Losses

The activity in the allowance for loan losses for the three-month and nine-month periods ended September 30, 2020 and September 30, 2019 is summarized in the following tables.


	Three Months Ended September 30, 2020
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for loan losses:
Beginning balance	$	23,476	$	16,469	$	6,828	$	10,507	$	15,624	$	572	$	73,476
Charge-offs	241		45		—		34		1,208		1		1,529
Recoveries	181		47		35		189		803		—		1,255
Net charge-offs/(recoveries)	60		(2)		(35)		(155)		405		1		274
Provision	3,571		6,417		1,544		546		1,750		8		13,836
Ending balance	$	26,987	$	22,888	$	8,407	$	11,208	$	16,969	$	579	$	87,038


	Three Months Ended September 30, 2019
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for loan losses:
Beginning balance	$	17,370	$	10,377	$	5,065	$	8,869	$	12,265	$	57	$	54,003
Charge-offs	585		8		—		85		1,801		—		2,479
Recoveries	403		246		432		98		1,183		—		2,362
Net charge-offs/(recoveries)	182		(238)		(432)		(13)		618		—		117
Provision/(recovery)	1,238		(177)		(65)		49		908		14		1,967
Ending balance	$	18,426	$	10,438	$	5,432	$	8,931	$	12,555	$	71	$	55,853

Composition Of The Allowance For Loan Losses

The composition of the allowance for loan losses at September 30, 2020 and December 31, 2019 was as follows:


	September 30, 2020
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	5,033		$	3,014		$	—		$	155		$	—		$	464		$	8,666
Collectively evaluated for impairment	21,913			19,872			8,407			10,993			16,969			115			78,269
Acquired with deteriorated credit quality	41			2			—			60			—			—			103
Total ending allowance balance	$	26,987		$	22,888		$	8,407		$	11,208		$	16,969		$	579		$	87,038

Loan balance:
Loans individually evaluated for impairment	$	33,075		$	72,499		$	3,142		$	4,898		$	—		$	2,524		$	116,138
Loans collectively evaluated for impairment	1,693,568			1,608,993			354,845			1,815,628			1,652,638			24,859			7,150,531
Loans acquired with deteriorated credit quality	373			7,985			1,009			2,383			—			127			11,877
Total ending loan balance	$	1,727,016		$	1,689,477		$	358,996		$	1,822,909		$	1,652,638		$	27,510		$	7,278,546

Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	15.22		%	4.16		%	—		%	3.16		%	—		%	18.38		%	7.46		%
Loans collectively evaluated for impairment	1.29		%	1.24		%	2.37		%	0.61		%	1.03		%	0.46		%	1.09		%
Loans acquired with deteriorated credit quality	10.99		%	0.03		%	—		%	2.52		%	—		%	—		%	0.87		%
Total	1.56		%	1.35		%	2.34		%	0.61		%	1.03		%	2.10		%	1.20		%

Recorded investment:
Loans individually evaluated for impairment	$	33,098		$	72,519		$	3,142		$	4,897		$	—		$	2,524		$	116,180
Loans collectively evaluated for impairment	1,700,477			1,615,685			355,806			1,819,008			1,657,153			24,881			7,173,010
Loans acquired with deteriorated credit quality	375			8,084			1,012			2,393			—			127			11,991
Total ending recorded investment	$	1,733,950		$	1,696,288		$	359,960		$	1,826,298		$	1,657,153		$	27,532		$	7,301,181


	December 31, 2019
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	5,104		$	35		$	—		$	42		$	—		$	49		$	5,230
Collectively evaluated for impairment	14,948			10,187			5,311			8,458			12,211			66			51,181
Acquired with deteriorated credit quality	151			7			—			110			—			—			268
Total ending allowance balance	$	20,203		$	10,229		$	5,311		$	8,610		$	12,211		$	115		$	56,679

Loan balance:
Loans individually evaluated for impairment	$	33,077		$	41,770		$	453		$	2,025		$	—		$	134		$	77,459
Loans collectively evaluated for impairment	1,151,073			1,558,550			330,106			1,888,088			1,452,373			29,424			6,409,614
Loans acquired with deteriorated credit quality (1)	960			9,093			1,140			2,613			2			523			14,331
Total ending loan balance	$	1,185,110		$	1,609,413		$	331,699		$	1,892,726		$	1,452,375		$	30,081		$	6,501,404

Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	15.43		%	0.08		%	—		%	2.07		%	—		%	36.57		%	6.75		%
Loans collectively evaluated for impairment	1.30		%	0.65		%	1.61		%	0.45		%	0.84		%	0.22		%	0.80		%
Loans acquired with deteriorated credit quality	15.73		%	0.08		%	—		%	4.21		%	—		%	—		%	1.87		%
Total	1.70		%	0.64		%	1.60		%	0.45		%	0.84		%	0.38		%	0.87		%

Recorded investment:
Loans individually evaluated for impairment	$	33,088		$	41,791		$	453		$	2,025		$	—		$	134		$	77,491
Loans collectively evaluated for impairment	1,155,449			1,564,011			331,161			1,891,941			1,456,687			29,444			6,428,693
Loans acquired with deteriorated credit quality (1)	966			9,182			1,143			2,625			2			523			14,441
Total ending recorded investment	$	1,189,503		$	1,614,984		$	332,757		$	1,896,591		$	1,456,689		$	30,101		$	6,520,625

(1) Excludes loans acquired with deteriorated credit quality which were individually evaluated for impairment due to additional credit deterioration or modification post acquisition. These loans had a balance of $5,000, a recorded investment of $6,000, and no allowance as of December 31, 2019.

Schedule of High Risk Industries Additional Reserves

A breakout of the 4-rated balances and additional reserve related to these portfolios is detailed in the following table.


	September 30, 2020
(in thousands)	4-Rated Balance		4-Rated Balance - Originated		4-Rated Balance - Purchased		Additional Reserve
Hotels and accommodations	$	86,041	$	85,050	$	991	$	1,435
Restaurants and food service	34,263		28,291		5,972		658
Strip shopping centers	181,517		158,790		22,727		1,789
Total	$	301,821	$	272,131	$	29,690	$	3,882

Additionally, management applied a 1% reserve to all hotels and accommodations loans in the general reserve population to account for increased valuation risk. At September 30, 2020, Park's originated hotels and accommodation loans had a balance of $178.8 million with an additional reserve related to valuation risks of $1.8 million.