Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Credit Losses

Loans individually or collectively evaluated for their impairment and related allowance, by loan class

	Three Months Ended March 31, 2020
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)
Balance at December 31, 2019	$	11,145	$	18,152	$	16,533	$	1,786	$	3,762	$	7,535	$	542	$	823	$	60,278
Adoption of ASU 2016-13		4,247		13,391		(4,292)		(355)		(1,580)		(429)		(225)		(410)		10,347
Losses charged to allowance		(2,819)		—		(55)		—		(36)		—		(70)		—		(2,980)
Recoveries credited to allowance		671		—		9		—		1		103		8		—		792
Net (losses) recoveries charged to allowance		(2,148)		—		(46)		—		(35)		103		(62)		—		(2,188)
Credit loss expense		5,823		5,878		2,809		327		635		1,243		68		53		16,836
Balance at March 31,	$	19,067	$	37,421	$	15,004	$	1,758	$	2,782	$	8,452	$	323	$	466	$	85,273

	Three Months Ended March 31, 2019
	Domestic														Foreign
			Commercial
			Real Estate:
			Other		Commercial
			Construction &		Real Estate:		Commercial
			Land		Farmland &		Real Estate:		Residential:		Residential:
	Commercial		Development		Commercial		Multifamily		First Lien		Junior Lien		Consumer		Foreign		Total
	(Dollars in Thousands)
Balance at December 31,	$	12,596	$	15,123	$	19,353	$	1,808	$	3,467	$	7,719	$	447	$	871	$	61,384
Losses charged to allowance		(2,764)		—		(1)		—		(1)		(6)		(63)		—		(2,835)
Recoveries credited to allowance		638		20		283		—		1		102		17		—		1,061
Net (losses) recoveries charged to allowance		(2,126)		20		282		—		—		96		(46)		—		(1,774)
Provision charged to operations		942		(354)		6,245		537		79		(70)		61		(20)		7,420
Balance at March 31,	$	11,412	$	14,789	$	25,880	$	2,345	$	3,546	$	7,745	$	462	$	851	$	67,030

	March 31, 2020
	Loans Individually				Loans Collectively
	Evaluated For				Evaluated For
	Impairment				Impairment
	Recorded				Recorded
	Investment		Allowance		Investment		Allowance
	(Dollars in Thousands)
Domestic
Commercial	$	1,649	$	342	$	1,367,362	$	18,725
Commercial real estate: other construction & land development		936		116		2,215,804		37,305
Commercial real estate: farmland & commercial		517		—		1,932,848		15,004
Commercial real estate: multifamily		152		—		202,298		1,758
Residential: first lien		92		—		431,496		2,782
Residential: junior lien		—		—		686,604		8,452
Consumer		3		—		45,437		323
Foreign		—		—		139,182		466
Total	$	3,349	$	458	$	7,021,031	$	84,815

	December 31, 2019
	Loans Individually				Loans Collectively
	Evaluated For				Evaluated For
	Impairment				Impairment
	Recorded				Recorded
	Investment		Allowance		Investment		Allowance
	(Dollars in Thousands)
Domestic
Commercial	$	1,935	$	249	$	1,290,725	$	10,895
Commercial real estate: other construction & land development		938		116		2,184,945		18,037
Commercial real estate: farmland & commercial		1,208		—		1,895,539		16,533
Commercial real estate: multifamily		165		—		190,265		1,786
Residential: first lien		6,278		—		427,623		3,762
Residential: junior lien		692		—		705,784		7,535
Consumer		1,195		—		46,605		542
Foreign		264		—		140,785		823
Total	$	12,675	$	365	$	6,882,271	$	59,913

Loans accounted on non-accrual basis, by loan class

	March 31, 2020		December 31, 2019
	(Dollars in Thousands)
Domestic
Commercial	$	1,649	$	1,901
Commercial real estate: other construction & land development		936		938
Commercial real estate: farmland & commercial		517		1,208
Commercial real estate: multifamily		152		165
Residential: first lien		624		670
Residential: junior lien		—		—
Consumer		3		4
Total non-accrual loans	$	3,881	$	4,886

Impaired loans, by loan class

The following tables detail key information regarding our impaired loans by loan class at December 31, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13:

	December 31, 2019
			Unpaid				Average
	Recorded		Principal		Related		Recorded		Interest
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in Thousands)
Loans with Related Allowance
Domestic
Commercial	$	510	$	516	$	249	$	514	$	—
Commercial real estate: other construction & land development		126		169		116		131		—
Total impaired loans with related allowance	$	636	$	685	$	365	$	645	$	—

	December 31, 2019
			Unpaid		Average
	Recorded		Principal		Recorded		Interest
	Investment		Balance		Investment		Recognized
	(Dollars in Thousands)
Loans with No Related Allowance
Domestic
Commercial	$	1,425	$	1,516	$	18,794	$	2
Commercial real estate: other construction & land development		812		1,133		1,737		—
Commercial real estate: farmland & commercial		1,208		1,841		22,357		—
Commercial real estate: multifamily		165		168		651		—
Residential: first lien		6,278		6,445		6,988		309
Residential: junior lien		692		692		1,023		42
Consumer		1,195		1,196		1,117		—
Foreign		264		264		278		12
Total impaired loans with no related allowance	$	12,039	$	13,255	$	52,945	$	365

The following table details key information regarding our impaired loans by loan class at March 31, 2019, in accordance with ASC 310 prior to the adoption of ASU 2016-13:

	March 31, 2019
	Quarter to Date
	Average
	Recorded		Interest
	Investment		Recognized
	(Dollars in Thousands)
Loans with Related Allowance
Domestic
Commercial	$	1,325	$	1,908
Commercial real estate: other construction & land development		134		169
Commercial real estate: farmland & commercial		24,463		24,774
Total impaired loans with related allowance	$	25,922	$	26,851

	March 31, 2019
	Quarter to Date
	Average
	Recorded		Interest
	Investment		Recognized
	(Dollars in Thousands)
Loans with No Related Allowance
Domestic
Commercial	$	17,370	$	1
Commercial real estate: other construction & land development		1,924		—
Commercial real estate: farmland & commercial		2,305		—
Commercial real estate: multifamily		506		—
Residential: first lien		6,239		75
Residential: junior lien		912		11
Consumer		1,075		—
Foreign		288		3
Total impaired loans with no related allowance	$	30,619	$	90

Loans accounted for as trouble debt restructuring, by Watch List Doubtful loans

	March 31, 2020		December 31, 2019
		(Dollars in Thousands)
Domestic
Commercial	$	—	$	32
Residential: first lien		3,857		5,608
Residential: junior lien		680		692
Consumer		1,217		1,192
Foreign		256		264
Total troubled debt restructuring	$	6,010	$	7,788

Information regarding the aging of past due loans, by loan class

	March 31, 2020
							90 Days or		Total
	30 - 59		60 - 89		90 Days or		greater &		Past				Total
	Days		Days		Greater		still accruing		Due		Current		Portfolio
	(Dollars in Thousands)
Domestic
Commercial	$	4,226	$	776	$	1,949	$	997	$	6,951	$	1,362,060	$	1,369,011
Commercial real estate: other construction & land development		8,953		1,479		145		145		10,577		2,206,163		2,216,740
Commercial real estate: farmland & commercial		22,566		1,543		47,658		47,658		71,767		1,861,598		1,933,365
Commercial real estate: multifamily		124		—		11		—		135		202,315		202,450
Residential: first lien		4,726		1,326		3,624		3,164		9,676		421,912		431,588
Residential: junior lien		1,509		513		1,173		1,173		3,195		683,409		686,604
Consumer		717		166		60		60		943		44,497		45,440
Foreign		3,466		482		1		1		3,949		135,233		139,182
Total past due loans	$	46,287	$	6,285	$	54,621	$	53,198	$	107,193	$	6,917,187	$	7,024,380

	December 31, 2019
							90 Days or		Total
	30 - 59		60 - 89		90 Days or		greater &		Past				Total
	Days		Days		Greater		still accruing		Due		Current		Portfolio
		(Dollars in Thousands)
Domestic
Commercial	$	3,134	$	626	$	1,292	$	421	$	5,052	$	1,287,608	$	1,292,660
Commercial real estate: other construction & land development		509		55		—		—		564		2,185,319		2,185,883
Commercial real estate: farmland & commercial		8,058		2,031		54,928		54,878		65,017		1,831,730		1,896,747
Commercial real estate: multifamily		313		—		165		—		478		189,952		190,430
Residential: first lien		3,229		1,670		3,660		3,107		8,559		425,342		433,901
Residential: junior lien		1,112		477		1,200		1,200		2,789		703,687		706,476
Consumer		467		75		88		88		630		47,170		47,800
Foreign		1,347		3		11		11		1,361		139,688		141,049
Total past due loans	$	18,169	$	4,937	$	61,344	$	59,705	$	84,450	$	6,810,496	$	6,894,946

Summary of the loan portfolio by credit quality indicator, by loan class

		2020	2019		2018		2017		2016		Prior		Total
	(Dollars in Thousands)
Balance at March 31, 2020
Domestic
Commercial
Pass	$	245,351	$	533,082	$	270,142	$	145,268	$	22,269	$	13,917	$	1,230,029
Special Review		—		71,700		—		—		—		—		71,700
Watch List - Pass		—		11		—		—		—		26		37
Watch List - Substandard		62,569		2,517		504		6		—		—		65,596
Watch List - Doubtful		353		608		455		229		4		—		1,649
Total Commercial	$	308,273	$	607,918	$	271,101	$	145,503	$	22,273	$	13,943	$	1,369,011
Commercial real estate: other construction & land development
Pass	$	136,898	$	1,064,250	$	624,498	$	238,744	$	41,536	$	17,556	$	2,123,482
Special Review		—		16,106		—		—		—		—		16,106
Watch List - Pass		8,000		35,622		370		—		—		—		43,992
Watch List - Substandard		275		31,804		—		—		145		—		32,224
Watch List - Doubtful		—		812		124		—		—		—		936
Total Commercial real estate: other construction & land development	$	145,173	$	1,148,594	$	624,992	$	238,744	$	41,681	$	17,556	$	2,216,740
Commercial real estate: farmland & commercial
Pass	$	139,114	$	675,730	$	385,302	$	203,811	$	132,509	$	215,389	$	1,751,855
Special Review		938		—		4,649		175		3,205		421		9,388
Watch List - Pass		16,713		5,956		2,648		124		587		1		26,029
Watch List - Substandard		1,668		52,471		—		2,348		85,594		3,495		145,576
Watch List - Doubtful		—		243		—		41		—		233		517
Total Commercial real estate: farmland & commercial	$	158,433	$	734,400	$	392,599	$	206,499	$	221,895	$	219,539	$	1,933,365
Commercial real estate: multifamily
Pass	$	10,623	$	58,886	$	38,954	$	64,640	$	14,660	$	14,535	$	202,298
Watch List - Doubtful		141		—		—		—		—		11		152
Total Commercial real estate: multifamily	$	10,764	$	58,886	$	38,954	$	64,640	$	14,660	$	14,546	$	202,450
Residential: first lien
Pass	$	27,821	$	75,150	$	88,482	$	65,513	$	40,903	$	132,027	$	429,896
Special Review		—		—		—		—		249		—		249
Watch List - Pass		—		—		144		—		—		—		144
Watch List - Substandard		—		—		624		—		51		—		675
Watch List - Doubtful		92		—		—		—		—		532		624
Total Residential: first lien	$	27,913	$	75,150	$	89,250	$	65,513	$	41,203	$	132,559	$	431,588
Residential: junior lien
Pass	$	33,344	$	161,204	$	105,315	$	127,651	$	100,080	$	158,201	$	685,795
Special Review		—		—		—		809		—		—		809
Total Residential: junior lien	$	33,344	$	161,204	$	105,315	$	128,460	$	100,080	$	158,201	$	686,604
Consumer
Pass	$	10,732	$	28,354	$	3,613	$	558	$	172	$	2,008	$	45,437
Watch List - Doubtful		—		—		—		—		—		3		3
Total Consumer	$	10,732	$	28,354	$	3,613	$	558	$	172	$	2,011	$	45,440
Foreign
Pass	$	22,915	$	79,118	$	17,208	$	7,403	$	4,614	$	7,924	$	139,182
Total Foreign	$	22,915	$	79,118	$	17,208	$	7,403	$	4,614	$	7,924	$	139,182
Total Loans	$	717,547	$	2,893,624	$	1,543,032	$	857,320	$	446,578	$	566,279	$	7,024,380

			December 31, 2019
			Special		Watch		Watch List—		Watch List—
	Pass		Review		List—Pass		Substandard		Impaired
			(Dollars in Thousands)
Domestic
Commercial	$	1,228,110	$	569	$	39	$	62,007	$	1,935
Commercial real estate: other construction & land development		2,090,370		18,721		41,949		33,905		938
Commercial real estate: farmland & commercial		1,710,446		13,184		20,183		151,726		1,208
Commercial real estate: multifamily		190,265		—		—		—		165
Residential: first lien		426,546		253		144		680		6,278
Residential: junior lien		704,958		826		—		—		692
Consumer		46,605		—		—		—		1,195
Foreign		140,785		—		—		—		264
Total	$	6,538,085	$	33,553	$	62,315	$	248,318	$	12,675

The increase in Special Review Commercial loans at March 31, 2020 can be attributed to the movement of a relationship in the oil and gas production business from the Pass category.