Loans and Allowance for Credit Losses |
NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio as of September 30, 2021 and December 31, 2020, is summarized below. | | | | | | | | | September 30, 2021 | | December 31, 2020 | | | | (in thousands) | Loans held for sale | | | | | | | Loans held for sale | | $ | 11,814 | | $ | — | Total loans held for sale | | $ | 11,814 | | $ | — | | | | | | | | Loans held for investment | | | | | | | Commercial loans: | | | | | | | Commercial and industrial | | $ | 838,741 | | $ | 952,805 | Commercial real estate | | | 960,319 | | | 909,101 | Construction and land | | | 205,148 | | | 145,595 | Total commercial loans | | | 2,004,208 | | | 2,007,501 | Residential: | | | | | | | Residential mortgages | | | 47,076 | | | 33,783 | Home equity | | | 28,943 | | | 25,443 | Total residential loans | | | 76,019 | | | 59,226 | Consumer | | | 192,462 | | | 176,066 | Other | | | 4,921 | | | 13,897 | Total loans | | | 2,277,610 | | | 2,256,690 | Less net deferred fees and other unearned income | | | (3,754) | | | (7,654) | Less allowance for credit losses on loans | | | (23,924) | | | (31,818) | Loans held for investment, net | | $ | 2,249,932 | | $ | 2,217,218 |
At September 30, 2021 and December 31, 2020, loans with a carrying value of $525.4 million and $474.5 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window. The fair value adjustments on purchased loans outside the scope of ASC 310-30 are accreted to interest income over the life of the loans. At September 30, 2021, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $180,000 compared to $262,000 at December 31, 2020. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of specific allowance for individually assessed loans and a general allowance for loans that are collectively assessed in pools with similar risk characteristics. The allowance is regularly evaluated to maintain a level adequate to absorb expected losses inherent in the loan portfolio. Accrued interest receivable totaled $9.4 million at September 30, 2021 and $10.8 million at December 31, 2020 and was reported in Other Assets on the Consolidated Balance Sheets. Included in the estimate of credit losses for loans at September 30, 2021 and December 31, 2020 was $31,000 and $49,000, respectively, related to accrued interest receivable totaling $3.6 million and $4.4 million, respectively, on loans with payment deferrals. The remaining balance of accrued interest receivable was excluded from the estimate of credit losses for loans. The following table presents the balance and activity in the allowance for credit losses on loans by portfolio segment for the three and nine months ended September 30, 2021 and 2020. | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | | 2021 | | | Commercial | | Residential | | Consumer | | Total | | | | (in thousands) | Allowance for credit losses on loans | | | | | | | | | | | | | Beginning balance | | $ | 25,070 | | $ | 519 | | $ | 534 | | $ | 26,123 | Provision for loan losses | | | (2,071) | | | (58) | | | (92) | | | (2,221) | Loans charged-off | | | (131) | | | — | | | — | | | (131) | Recoveries | | | 151 | | | — | | | 2 | | | 153 | Total ending allowance balance | | $ | 23,019 | | $ | 461 | | $ | 444 | | $ | 23,924 |
| | | | | | | | | | | | | | | For the Three Months Ended September 30, | | | 2020 | | | Commercial | | Residential | | Consumer | | Total | | | | (in thousands) | Allowance for credit losses on loans | | | | | | | | | | | | | Beginning balance | | $ | 30,834 | | $ | 517 | | $ | 254 | | $ | 31,605 | Provision for loan losses | | | (83) | | | 149 | | | 570 | | | 636 | Loans charged-off | | | (404) | | | — | | | — | | | (404) | Recoveries | | | 56 | | | — | | | 1 | | | 57 | Total ending allowance balance | | $ | 30,403 | | $ | 666 | | $ | 825 | | $ | 31,894 |
| | | | | | | | | | | | | | | For the Nine Months Ended September 30, | | | 2021 | | | Commercial | | Residential | | Consumer | | Total | | | | (in thousands) | Allowance for credit losses on loans | | | | | | | | | | | | | Beginning balance | | $ | 30,221 | | $ | 699 | | $ | 898 | | $ | 31,818 | Provision for loan losses | | | (6,604) | | | (47) | | | (458) | | | (7,109) | Loans charged-off | | | (805) | | | (223) | | | — | | | (1,028) | Recoveries | | | 207 | | | 32 | | | 4 | | | 243 | Total ending allowance balance | | $ | 23,019 | | $ | 461 | | $ | 444 | | $ | 23,924 |
| | | | | | | | | | | | | | | For the Nine Months Ended September 30, | | | 2020 | | | Commercial | | Residential | | Consumer | | Total | | | | (in thousands) | Allowance for credit losses on loans | | | | | | | | | | | | | Beginning balance | | $ | 18,203 | | $ | 145 | | $ | 187 | | $ | 18,535 | Impact of adopting ASC 326 | | | (947) | | | 8 | | | 85 | | | (854) | Provision for loan losses | | | 15,051 | | | 673 | | | 543 | | | 16,267 | Loans charged-off | | | (1,979) | | | (161) | | | — | | | (2,140) | Recoveries | | | 75 | | | 1 | | | 10 | | | 86 | Total ending allowance balance | | $ | 30,403 | | $ | 666 | | $ | 825 | | $ | 31,894 |
The decrease in the allowance for credit losses at September 30, 2021 compared to December 31, 2020 was due to an improvement in the CECL economic forecast partially offset by growth in commercial real estate loans and in construction loans. A charge-off is recognized when the amount of the loss is quantifiable and timing is known. A collateral based loan charge-off is measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan collateral. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. Atlantic Capital’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal. Troubled Debt Restructurings Atlantic Capital evaluates loans in accordance with ASC 310-40, Troubled Debt Restructurings by Creditors. TDRs are made to provide relief to customers experiencing liquidity challenges or other circumstances that could affect their ability to meet their debt obligations. Typical modifications include short-term deferral of interest or modification of payment terms. Nonperforming TDRs do not accrue interest and are included as NPAs within NPLs. TDRs which are accruing interest based on the restructured terms are considered performing. As of September 30, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $13.2 million and $14.2 million, respectively. The Company allocated $502,000 in allowance for those loans at September 30, 2021 and had no commitments to lend additional funds on loans modified as TDRs as of September 30, 2021 and December 31, 2020. There were no loans modified as TDRs during the three and nine months ended September 30, 2021, nor during the three months ended September 30, 2020. Loans, by portfolio class, modified as TDRs during the nine months ended September 30, 2020 are as follows: | | | | | | | | | | | | | | | | | | | Number of Loans | | Outstanding Balance | | Increase in Allowance | | | | | | (in thousands) | Nine Months Ended September 30, 2020 | | | | | | | | | Commercial and industrial | | 1 | | $ | 65 | | $ | 3 | Commercial real estate | | 1 | | | 1,920 | | | 188 | Total | | 2 | | $ | 1,985 | | $ | 191 |
The Company did not forgive any principal on TDRs during the three and nine months ended September 30, 2021 and 2020. A TDR is considered to be in default once it becomes 90 days or more contractually past due under the modified terms. The following table presents by class, all loans modified as TDRs that defaulted during the three and nine months ended September 30, 2020, and within twelve months of their modification date. There were no loans modified as TDRs that defaulted during the three and nine months ended September 30, 2021, and within twelve months of their modification date. | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, 2020 | | September 30, 2020 | | | Number of Loans | | | Outstanding Balance | | Number of Loans | | | Outstanding Balance | | | | | | | | | | | | (in thousands) | | | | | | | | | | | Commercial | | - | | $ | - | | 2 | | $ | 310 | Total | | - | | $ | - | | 2 | | $ | 310 |
Section 4013 “Temporary Relief From Troubled Debt Restructurings,” of the CARES Act, passed by Congress and signed into law on March 27, 2020, allows financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. The relief was extended by the 2021 Consolidated Appropriations Act through January 1, 2022. On April 7, 2020, the Federal Financial Institutions Examination Council provided additional guidance in its Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised). This guidance received concurrence from the FASB and clarified that loan modifications made under the following criteria are generally not considered TDRs if: | ● | the modification is in response to the national emergency; |
| ● | the borrower was current on payments at the time the modification program is implemented; and |
| ● | the modification is short-term (e.g., six months). |
Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. The likelihood of default of a credit transaction is graded in the Obligor Rating and is determined through credit analysis. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include loans with commitments less than $1 million, well-collateralized term loans and loans to individuals with limited exposure or complexity. Atlantic Capital uses the following definitions for risk ratings: Pass: Loans that are analyzed individually as part of the above described process and that do not meet the criteria of special mention, substandard or doubtful. Special Mention: Loans classified as special mention have a potential weakness that requires management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified 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: Loans classified as doubtful have all the weaknesses inherent in those classified as 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. As of September 30, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | | | | | | | | | | | | | | | | | | Amortized | | | | | | 2021 | | 2020 | | 2019 | | 2018 | | 2017 | | Prior | | Cost Basis | | Total | | | | (in thousands) | | | | September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | Commercial - commercial and industrial: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 261,015 | | $ | 102,552 | | $ | 70,930 | | $ | 54,530 | | $ | 38,707 | | $ | 47,740 | | $ | 223,244 | | $ | 798,718 | Special mention | | | 425 | | | 500 | | | 4,807 | | | 6,585 | | | 430 | | | 834 | | | 5,067 | | | 18,648 | Substandard | | | — | | | 650 | | | 5,690 | | | 10,918 | | | — | | | 702 | | | 3,043 | | | 21,003 | Doubtful | | | — | | | — | | | — | | | 372 | | | — | | | — | | | — | | | 372 | Total commercial - commercial and industrial | | $ | 261,440 | | $ | 103,702 | | $ | 81,427 | | $ | 72,405 | | $ | 39,137 | | $ | 49,276 | | $ | 231,354 | | $ | 838,741 | Commercial - commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 150,774 | | $ | 89,754 | | $ | 153,456 | | $ | 128,454 | | $ | 59,061 | | $ | 318,772 | | $ | 18,110 | | $ | 918,381 | Special mention | | | — | | | 2,899 | | | 10,157 | | | 1,401 | | | 256 | | | 7,016 | | | 1,212 | | | 22,941 | Substandard | | | — | | | — | | | — | | | 5,711 | | | 2,959 | | | 10,327 | | | — | | | 18,997 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial - commercial real estate loans | | $ | 150,774 | | $ | 92,653 | | $ | 163,613 | | $ | 135,566 | | $ | 62,276 | | $ | 336,115 | | $ | 19,322 | | $ | 960,319 | Commercial - construction and land: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 54,177 | | $ | 90,936 | | $ | 34,842 | | $ | 88 | | $ | — | | $ | — | | $ | 25,105 | | $ | 205,148 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial - construction and land loans | | $ | 54,177 | | $ | 90,936 | | $ | 34,842 | | $ | 88 | | $ | — | | $ | — | | $ | 25,105 | | $ | 205,148 | Residential - mortgages: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 6,858 | | $ | 9,002 | | $ | 2,871 | | $ | 14,538 | | $ | 4,548 | | $ | 8,189 | | $ | — | | $ | 46,006 | Special mention | | | — | | | — | | | — | | | 160 | | | 728 | | | — | | | — | | | 888 | Substandard | | | — | | | — | | | — | | | 156 | | | — | | | 26 | | | — | | | 182 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total residential - mortgage loans | | $ | 6,858 | | $ | 9,002 | | $ | 2,871 | | $ | 14,854 | | $ | 5,276 | | $ | 8,215 | | $ | — | | $ | 47,076 | Residential - home equity: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 28,018 | | $ | 28,018 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | 726 | | | 726 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | 199 | | | 199 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total residential - home equity loans | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 28,943 | | $ | 28,943 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 153,819 | | $ | 31,763 | | $ | 2,152 | | $ | — | | $ | 22 | | $ | 3,700 | | $ | 1,006 | | $ | 192,462 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total consumer loans | | $ | 153,819 | | $ | 31,763 | | $ | 2,152 | | $ | — | | $ | 22 | | $ | 3,700 | | $ | 1,006 | | $ | 192,462 | Other: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 64 | | $ | — | | $ | — | | $ | 1,551 | | $ | 1,164 | | $ | 549 | | $ | — | | $ | 3,328 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | 1,593 | | | — | | | — | | | 1,593 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total other loans | | $ | 64 | | $ | — | | $ | — | | $ | 1,551 | | $ | 2,757 | | $ | 549 | | $ | — | | $ | 4,921 | | | | | | | | | | | | | | | | | | | | | | | | | | Total: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 626,707 | | $ | 324,007 | | $ | 264,251 | | $ | 199,161 | | $ | 103,502 | | $ | 378,950 | | $ | 295,483 | | $ | 2,192,061 | Special Mention | | | 425 | | | 3,399 | | | 14,964 | | | 8,146 | | | 1,414 | | | 7,850 | | | 7,005 | | | 43,203 | Substandard | | | — | | | 650 | | | 5,690 | | | 16,785 | | | 4,552 | | | 11,055 | | | 3,242 | | | 41,974 | Doubtful | | | — | | | — | | | — | | | 372 | | | — | | | — | | | — | | | 372 | Total | | $ | 627,132 | | $ | 328,056 | | $ | 284,905 | | $ | 224,464 | | $ | 109,468 | | $ | 397,855 | | $ | 305,730 | | $ | 2,277,610 |
As of December 31, 2020, the risk category of loans by class of loans is as follows. | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | | | | | | | | | | | | | | | | | | Amortized | | | | | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | | Prior | | Cost Basis | | Total | | | | (in thousands) | | | | December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | Commercial - commercial and industrial: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 358,320 | | $ | 130,466 | | $ | 94,596 | | $ | 44,706 | | $ | 35,098 | | $ | 16,621 | | $ | 179,521 | | $ | 859,328 | Special mention | | | 1,260 | | | 11,475 | | | 26,683 | | | 540 | | | 684 | | | 310 | | | 24,844 | | | 65,796 | Substandard | | | — | | | 4,069 | | | 7,917 | | | 2,436 | | | 997 | | | 5,474 | | | 6,779 | | | 27,672 | Doubtful | | | — | | | — | | | 9 | | | — | | | — | | | — | | | — | | | 9 | Total commercial - commercial and industrial | | $ | 359,580 | | $ | 146,010 | | $ | 129,205 | | $ | 47,682 | | $ | 36,779 | | $ | 22,405 | | $ | 211,144 | | $ | 952,805 | Commercial - commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 88,246 | | $ | 160,205 | | $ | 146,807 | | $ | 93,956 | | $ | 123,959 | | $ | 213,204 | | $ | 9,189 | | $ | 835,566 | Special mention | | | — | | | 21,964 | | | 1,534 | | | — | | | 865 | | | 4,142 | | | 175 | | | 28,680 | Substandard | | | 5,328 | | | 6,102 | | | 4,323 | | | 3,262 | | | 9,674 | | | 16,166 | | | — | | | 44,855 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial - commercial real estate loans | | $ | 93,574 | | $ | 188,271 | | $ | 152,664 | | $ | 97,218 | | $ | 134,498 | | $ | 233,512 | | $ | 9,364 | | $ | 909,101 | Commercial - construction and land: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 71,828 | | $ | 57,807 | | $ | 4,407 | | $ | — | | $ | — | | $ | 720 | | $ | 6,012 | | $ | 140,774 | Special mention | | | — | | | — | | | 2,665 | | | — | | | 2,156 | | | — | | | — | | | 4,821 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial - construction and land loans | | $ | 71,828 | | $ | 57,807 | | $ | 7,072 | | $ | — | | $ | 2,156 | | $ | 720 | | $ | 6,012 | | $ | 145,595 | Residential - mortgages: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 9,848 | | $ | 2,862 | | $ | 14,040 | | $ | 747 | | $ | 2,817 | | $ | 307 | | $ | — | | $ | 30,621 | Special mention | | | 1,237 | | | — | | | 857 | | | 753 | | | — | | | — | | | — | | | 2,847 | Substandard | | | — | | | — | | | 179 | | | — | | | 26 | | | 110 | | | — | | | 315 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total residential - mortgage loans | | $ | 11,085 | | $ | 2,862 | | $ | 15,076 | | $ | 1,500 | | $ | 2,843 | | $ | 417 | | $ | — | | $ | 33,783 | Residential - home equity: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 24,717 | | $ | 24,717 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | 726 | | | 726 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total residential - home equity loans | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 25,443 | | $ | 25,443 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 162,671 | | $ | 5,429 | | $ | — | | $ | 50 | | $ | 64 | | $ | 4,964 | | $ | 2,888 | | $ | 176,066 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total consumer loans | | $ | 162,671 | | $ | 5,429 | | $ | — | | $ | 50 | | $ | 64 | | $ | 4,964 | | $ | 2,888 | | $ | 176,066 | Other: | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | — | | $ | — | | $ | 4,609 | | $ | 1,327 | | $ | — | | $ | 640 | | $ | 5,748 | | $ | 12,324 | Special mention | | | — | | | 1,117 | | | — | | | — | | | — | | | — | | | — | | | 1,117 | Substandard | | | — | | | — | | | — | | | 456 | | | — | | | — | | | — | | | 456 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total consumer - other loans | | $ | — | | $ | 1,117 | | $ | 4,609 | | $ | 1,783 | | $ | — | | $ | 640 | | $ | 5,748 | | $ | 13,897 | | | | | | | | | | | | | | | | | | | | | | | | | | Total: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 690,913 | | $ | 356,769 | | $ | 264,459 | | $ | 140,786 | | $ | 161,938 | | $ | 236,456 | | $ | 228,075 | | $ | 2,079,396 | Special Mention | | | 2,497 | | | 34,556 | | | 31,739 | | | 1,293 | | | 3,705 | | | 4,452 | | | 25,745 | | | 103,987 | Substandard | | | 5,328 | | | 10,171 | | | 12,419 | | | 6,154 | | | 10,697 | | | 21,750 | | | 6,779 | | | 73,298 | Doubtful | | | — | | | — | | | 9 | | | — | | | — | | | — | | | — | | | 9 | Total | | $ | 698,738 | | $ | 401,496 | | $ | 308,626 | | $ | 148,233 | | $ | 176,340 | | $ | 262,658 | | $ | 260,599 | | $ | 2,256,690 |
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2021 and December 31, 2020: | | | | | | | | | | | | | | | As of September 30, 2021 | | | | Nonaccrual | | | Nonaccrual | | | | | | Loans Past | | | | With No | | | With | | | | | | Due Over | | | | Allowance for | | | Allowance for | | | Total | | | 89 Days | | | | Credit Losses | | | Credit Losses | | | Nonaccrual | | | Still Accruing | Commercial loans: | | | | | | | | | | | | | Commercial and industrial | | $ | — | | $ | 2,445 | | $ | 2,445 | | $ | — | Commercial real estate | | | 13 | | | — | | | 13 | | | — | Total commercial loans | | | 13 | | | 2,445 | | | 2,458 | | | — | Residential mortgages | | | 1,619 | | | — | | | 1,619 | | | — | Total loans | | $ | 1,632 | | $ | 2,445 | | $ | 4,077 | | $ | — |
| | | | | | | | | | | | | | | As of December 31, 2020 | | | | Nonaccrual | | | Nonaccrual | | | | | | Loans Past | | | | With No | | | With | | | | | | Due Over | | | | Allowance for | | | Allowance for | | | Total | | | 89 Days | | | | Credit Losses | | | Credit Losses | | | Nonaccrual | | | Still Accruing | Commercial loans: | | | | | | | | | | | | | Commercial and industrial | | $ | 2,597 | | $ | 934 | | $ | 3,531 | | $ | — | Commercial real estate | | | 42 | | | — | | | 42 | | | — | Total commercial loans | | | 2,639 | | | 934 | | | 3,573 | | | — | Residential mortgages | | | 205 | | | — | | | 205 | | | 1,084 | Total loans | | $ | 2,844 | | $ | 934 | | $ | 3,778 | | $ | 1,084 |
The gross additional interest income that would have been earned during the three and nine months ended September 30, 2021 and 2020 had performing TDRs performed in accordance with the original terms is immaterial. Atlantic Capital recognized interest income on nonaccrual loans of $58,000 and $103,000 during the three and nine months ended September 30, 2021, respectively. During the three and nine months ended September 30, 2020, Atlantic Capital recognized interest income on nonaccrual loans of $41,000 and $123,000, respectively. The following table presents the amortized cost basis of collateral dependent impaired loans by class of loans as of September 30, 2021 and December 31, 2020: | | | | | | | | | | | | | | | As of September 30, 2021 | | | | Real | | | | | | SBA | | | | | | | Property | | | Equipment | | | Guaranty | | | Total | | | | | | | | | | | | | | Commercial and industrial | | $ | 13 | | $ | — | | $ | 1,022 | | $ | 1,035 | Residential mortgages | | | 1,024 | | | 27 | | | 568 | | | 1,619 | Total loans | | $ | 1,037 | | $ | 27 | | $ | 1,590 | | $ | 2,654 |
| | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | | Real | | | | | | Business | | | SBA | | | | | | | Property | | | Equipment | | | Assets | | | Guaranty | | | Total | | | | | | | | | | | | | | | | | Commercial and industrial | | $ | 2,165 | | $ | 262 | | $ | 150 | | $ | 212 | | $ | 2,789 | Residential mortgages | | | 205 | | | — | | | — | | | — | | | 205 | Total loans | | $ | 2,370 | | $ | 262 | | $ | 150 | | $ | 212 | | $ | 2,994 |
Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of September 30, 2021 and December 31, 2020 by class of loans. | | | | | | | | | | | | | | | | | | | | | | | | As of September 30, 2021 | | | 30 - 59 | | 60 - 89 | | Greater Than | | | | | | | | | | | Days | | Days | | 89 Days | | | | Total Past Due | | Loans Not | | | | | Past Due | | Past Due | | Past Due | | Nonaccruing | | and Nonaccruing | | Past Due | | Total | | | | (in thousands) | Loans by Classification | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | $ | 1,145 | | $ | 848 | | $ | — | | $ | 2,445 | | $ | 4,438 | | $ | 834,303 | | $ | 838,741 | Commercial real estate | | | 4,738 | | | — | | | — | | | 13 | | | 4,751 | | | 955,568 | | | 960,319 | Construction and land | | | — | | | — | | | — | | | — | | | — | | | 205,148 | | | 205,148 | Residential mortgages | | | 1,369 | | | — | | | — | | | 1,619 | | | 2,988 | | | 44,088 | | | 47,076 | Home equity | | | 199 | | | — | | | — | | | — | | | 199 | | | 28,744 | | | 28,943 | Consumer | | | 12,069 | | | 5,471 | | | — | | | — | | | 17,540 | | | 179,843 | | | 197,383 | Total Loans | | $ | 19,520 | | $ | 6,319 | | $ | — | | $ | 4,077 | | $ | 29,916 | | $ | 2,247,694 | | $ | 2,277,610 |
| | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | 30 - 59 | | 60 - 89 | | Greater Than | | | | | | | | | | | | Days | | Days | | 89 Days | | | | Total Past Due | | Loans Not | | | | | | Past Due | | Past Due | | Past Due | | Nonaccruing | | and Nonaccruing | | Past Due | | | Total | | | | (in thousands) | Loans by Classification | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | $ | 1,166 | | $ | 1,749 | | $ | 817 | | $ | 3,531 | | $ | 7,263 | | $ | 945,542 | | $ | 952,805 | Commercial real estate | | | 4,008 | | | 357 | | | — | | | 42 | | | 4,407 | | | 904,694 | | | 909,101 | Construction and land | | | — | | | — | | | — | | | — | | | — | | | 145,595 | | | 145,595 | Residential mortgages | | | 479 | | | 925 | | | 267 | | | 205 | | | 1,876 | | | 31,907 | | | 33,783 | Home equity | | | — | | | — | | | — | | | — | | | — | | | 25,443 | | | 25,443 | Consumer | | | 10,374 | | | 5,776 | | | — | | | — | | | 16,150 | | | 173,813 | | | 189,963 | Total Loans | | $ | 16,027 | | $ | 8,807 | | $ | 1,084 | | $ | 3,778 | | $ | 29,696 | | $ | 2,226,994 | | $ | 2,256,690 |
The following table presents loans repurchased and/or cash proceeds from loans sold during the three and nine months ended September 30, 2021 and 2020 by portfolio class. Of the loans sold where the Company has continuing involvement, $4.9 million and $8.4 million were past due thirty days or greater at September 30, 2021 and December 31, 2020, respectively. These amounts are included in the past due table above. | | | | | | | | | | | | | | | For the three months ended September 30, 2021 | | | Commercial and | | Commercial | | Residential | | | | | Industrial | | Real Estate | | Mortgages | | Total | | | | (in thousands) | | | | | | | | | | | | | | Repurchases of SBA participations | | $ | 279 | | $ | - | | $ | - | | $ | 279 | SBA Sales | | | 10,615 | | | 3,036 | | | - | | | 13,651 | Total Loans | | $ | 10,894 | | $ | 3,036 | | $ | - | | $ | 13,930 | | | | | | | | | | | | | | | | For the nine months ended September 30, 2021 | | | Commercial and | | Commercial | | Residential | | | | | Industrial | | Real Estate | | Mortgages | | Total | | | | (in thousands) | | | | | | | | | | | | | | Repurchases of SBA participations | | $ | 1,349 | | $ | 2,708 | | $ | 1,362 | | $ | 5,419 | SBA Sales | | | 26,881 | | | 11,543 | | | 664 | | | 39,088 | Total Loans | | $ | 28,230 | | $ | 14,251 | | $ | 2,026 | | $ | 44,507 |
| | | | | | | | | | | | | | | For the three months ended September 30, 2020 | | | Commercial and | | Commercial | | Residential | | | | | Industrial | | Real Estate | | Mortgages | | Total | | | | (in thousands) | | | | | | | | | | | | | | Repurchases of SBA participations | | $ | 1,015 | | $ | - | | $ | - | | $ | 1,015 | SBA Sales | | | 10,258 | | | 772 | | | - | | | 11,030 | Total Loans | | $ | 11,273 | | $ | 772 | | $ | - | | $ | 12,045 | | | | | | | | | | | | | | | | For the nine months ended September 30, 2020 | | | Commercial and | | Commercial | | Residential | | | | | Industrial | | Real Estate | | Mortgages | | Total | | | | (in thousands) | | | | | | | | | | | | | | Repurchases of SBA participations | | $ | 2,338 | | $ | 1,467 | | $ | - | | $ | 3,805 | SBA Sales | | | 26,427 | | | 2,264 | | | 277 | | | 28,968 | Total Loans | | $ | 28,765 | | $ | 3,731 | | $ | 277 | | $ | 32,773 |
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