Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Loans and Allowance for Credit Losses

Note 3. Loans and Allowance for Credit Losses

The Company generally makes loans in its market areas of southern and central Mississippi; southern and central Alabama; southern, central and northwest Louisiana; the northern, central and panhandle regions of Florida; certain areas of east and northeast Texas, including Houston, Beaumont, Dallas, Austin and San Antonio, among others; and the metropolitan areas of Nashville, Tennessee and Atlanta, Georgia.

Loans, net of unearned income by portfolio are presented at amortized cost basis in the table below. Amortized cost does not include accrued interest, which is reflected in the accrued interest line item in the Consolidated Balance Sheets, totaling $124.7 million and $100.2 million at December 31, 2023 and 2022, respectively. The following table presents loans, net of unearned income, by portfolio class at December 31, 2023 and 2022:

	December 31,
($ in thousands)	2023		2022
Commercial non-real estate	$	9,957,284	$	10,146,453
Commercial real estate - owner occupied		3,093,763		3,033,058
Total commercial and industrial		13,051,047		13,179,511
Commercial real estate - income producing		3,986,943		3,560,991
Construction and land development		1,551,091		1,703,592
Residential mortgages		3,886,072		3,092,605
Consumer		1,446,764		1,577,347
Total loans	$	23,921,917	$	23,114,046

The following briefly describes the composition of each loan category and portfolio class.

Commercial and industrial

Commercial and industrial loans are made available to businesses for working capital (including financing of inventory and receivables), business expansion, to facilitate the acquisition of a business, and the purchase of equipment and machinery, including equipment leasing. These loans are primarily made based on the identified cash flows of the borrower and, when secured, have the added strength of the underlying collateral.

Commercial non-real estate loans may be secured by the assets being financed or other tangible or intangible business assets such as accounts receivable, inventory, ownership, enterprise value or commodity interests, and may incorporate a personal or corporate guarantee; however, some short-term loans may be made on an unsecured basis, including a small portfolio of corporate credit cards, generally issued as a part of overall customer relationships.

Commercial real estate – owner occupied loans consist of commercial mortgages on properties where repayment is generally dependent on the cash flow from the ongoing operations and activities of the borrower. Like commercial non-real estate, these loans are primarily made based on the identified cash flows of the borrower, but also have the added strength of the value of underlying real estate collateral.

Commercial real estate – income producing

Commercial real estate – income producing loans consist of loans secured by commercial mortgages on properties where the loan is made to real estate developers or investors and repayment is dependent on the sale, refinance, or income generated from the operation of the property. Properties financed include retail, office, multifamily, senior housing, hotel/motel, skilled nursing facilities and other commercial properties.

Construction and land development

Construction and land development loans are made to facilitate the acquisition, development, improvement and construction of both commercial and residential-purpose properties. Such loans are made to builders and investors where repayment is expected to be made from the sale, refinance or operation of the property or to businesses to be used in their business operations. This portfolio also includes residential construction loans and loans secured by raw land not yet under development.

Residential mortgages

Residential mortgages consist of closed-end loans secured by first liens on 1- 4 family residential properties. The portfolio includes both fixed and adjustable rate loans, although most longer term, fixed rate loans originated are generally sold in the secondary mortgage market.

Consumer

Consumer loans include second lien mortgage home loans, home equity lines of credit and nonresidential consumer purpose loans. Nonresidential consumer loans include both direct and indirect loans. Direct nonresidential consumer loans are made to finance the purchase of personal property, including automobiles, recreational vehicles and boats, and for other personal purposes (secured and unsecured), and deposit account secured loans. Indirect nonresidential consumer loans include automobile financing provided to the consumer through an agreement with automobile dealerships, though the Company is no longer engaged in this type of lending and the remaining portfolio is in runoff. Consumer loans also include a small portfolio of credit card receivables issued on the basis of applications received through referrals from the Bank’s branches, online and other marketing efforts.

The Bank makes loans in the normal course of business to directors and executive officers of the Company and the Bank and to their associates. Loans to such related parties are made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk of collectability when originated. Balances of loans to the Company’s directors, executive officers and their associates at December 31, 2023 and 2022 were approximately $23.5 million and $30.4 million, respectively. Related party loan activity in 2023 reflect new loans of $4.5 million, and repayments of $11.4 million.

The Bank has a line of credit with the Federal Home Loan Bank of Dallas that is secured by blanket pledges of certain qualifying loan types. The Bank had borrowings on this line of $0.7 billion and $1.4 billion at December 31, 2023 and 2022, respectively.

LIBOR Transition

Effective July 1, 2023, the London Interbank Offered Rate (“LIBOR”) is no longer a representative rate for the overnight, one-month, three-month, six-month, and twelve-month settings. The Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”), signed into law in March of 2022, offers a federal solution for transitioning legacy instruments that lack sufficient provisions addressing LIBOR’s cessation by outlining a uniform process to govern the transition from LIBOR to a replacement rate. The Federal Reserve Bank Board, authorized under the LIBOR Act to issue appropriate and necessary regulations to administer and carry out the purposes of the Act, issued final regulations which became effective on February 27, 2023. Under the LIBOR Act and the related regulations, the Chicago Mercantile Exchange Term Secured Overnight Financing Rate (“CME Term SOFR”) plus a tenor spread adjustment was designated as the replacement reference rate for instruments that previously referenced LIBOR.

Effective July 3, 2023, approximately $3.1 billion of variable rate loans tied to LIBOR were transitioned in accordance with the statutory framework established by the Federal Reserve, with the transition rate to be utilized upon the next reset period, in a manner that is consistent with industry practice. There was no material financial impact from this transition on the Company’s operating results for the year ended December 31, 2023.

The following schedules show activity in the allowance for credit losses by portfolio class for the years ended December 31, 2023 and 2022, as well as the corresponding recorded investment in loans at December 31, 2023 and 2022.

	Commercial Non-Real Estate			Commercial Real Estate-Owner Occupied			Total Commercial and Industrial			Commercial Real Estate-Income Producing			Construction and Land Development			Residential Mortgages			Consumer			Total
($ in thousands)	Year Ended December 31, 2023
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	96,461		$	48,284		$	144,745		$	71,961		$	30,498		$	32,464		$	28,121		$	307,789
Charge-offs		(59,830	)		—			(59,830	)		(73	)		(72	)		(55	)		(15,393	)		(75,423	)
Recoveries		6,152			957			7,109			14			11			1,278			3,611			12,023
Net provision for loan losses		58,954			(9,044	)		49,910			2,637			(3,398	)		5,296			9,073			63,518
Ending balance - allowance for loan losses	$	101,737		$	40,197		$	141,934		$	74,539		$	27,039		$	38,983		$	25,412		$	307,907
Reserve for unfunded lending commitments:
Beginning balance	$	4,984		$	302		$	5,286		$	1,395		$	25,110		$	31		$	1,487		$	33,309
Provision for losses on unfunded    commitments		523			25			548			(51	)		(5,091	)		(1	)		180			(4,415	)
Ending balance - reserve for unfunded    lending commitments	$	5,507		$	327		$	5,834		$	1,344		$	20,019		$	30		$	1,667		$	28,894
Total allowance for credit losses	$	107,244		$	40,524		$	147,768		$	75,883		$	47,058		$	39,013		$	27,079		$	336,801
Allowance for loan losses:
Individually evaluated	$	1,666		$	—		$	1,666		$	—		$	—		$	—		$	—		$	1,666
Collectively evaluated		100,071			40,197			140,268			74,539			27,039			38,983			25,412			306,241
Allowance for loan losses	$	101,737		$	40,197		$	141,934		$	74,539		$	27,039		$	38,983		$	25,412		$	307,907
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		5,507			327			5,834			1,344			20,019			30			1,667			28,894
Reserve for unfunded lending commitments	$	5,507		$	327		$	5,834		$	1,344		$	20,019		$	30		$	1,667		$	28,894
Total allowance for credit losses	$	107,244		$	40,524		$	147,768		$	75,883		$	47,058		$	39,013		$	27,079		$	336,801
Loans:
Individually evaluated for impairment	$	15,882		$	—		$	15,882		$	—		$	—		$	—		$	—		$	15,882
Collectively evaluated for impairment		9,941,402			3,093,763			13,035,165			3,986,943			1,551,091			3,886,072			1,446,764			23,906,035
Total loans	$	9,957,284		$	3,093,763		$	13,051,047		$	3,986,943		$	1,551,091		$	3,886,072		$	1,446,764		$	23,921,917

	Commercial Non-Real Estate			Commercial Real Estate-Owner Occupied			Total Commercial and Industrial			Commercial Real Estate-Income Producing			Construction and Land Development			Residential Mortgages			Consumer			Total
($ in thousands)	Year Ended December 31, 2022
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	95,888		$	53,433		$	149,321		$	108,058		$	22,102		$	30,623		$	31,961		$	342,065
Charge-offs		(7,637	)		(948	)		(8,585	)		(1,073	)		(3	)		(137	)		(12,792	)		(22,590	)
Recoveries		11,812			733			12,545			878			134			1,749			5,382			20,688
Net provision for loan losses		(3,602	)		(4,934	)		(8,536	)		(35,902	)		8,265			229			3,570			(32,374	)
Ending balance - allowance for loan losses	$	96,461		$	48,284		$	144,745		$	71,961		$	30,498		$	32,464		$	28,121		$	307,789
Reserve for unfunded lending commitments:
Beginning balance	$	4,522		$	323		$	4,845		$	1,694		$	21,907		$	22		$	866		$	29,334
Provision for losses on unfunded    commitments		462			(21	)		441			(299	)		3,203			9			621			3,975
Ending balance - reserve for unfunded    lending commitments	$	4,984		$	302		$	5,286		$	1,395		$	25,110		$	31		$	1,487		$	33,309
Total allowance for credit losses	$	101,445		$	48,586		$	150,031		$	73,356		$	55,608		$	32,495		$	29,608		$	341,098
Allowance for loan losses:
Individually evaluated	$	71		$	31		$	102		$	16		$	18		$	239		$	101		$	476
Collectively evaluated		96,390			48,253			144,643			71,945			30,480			32,225			28,020			307,313
Allowance for loan losses	$	96,461		$	48,284		$	144,745		$	71,961		$	30,498		$	32,464		$	28,121		$	307,789
Reserve for unfunded lending commitments:
Individually evaluated	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated		4,984			302			5,286			1,395			25,110			31			1,487			33,309
Reserve for unfunded lending commitments:	$	4,984		$	302		$	5,286		$	1,395		$	25,110		$	31		$	1,487		$	33,309
Total allowance for credit losses	$	101,445		$	48,586		$	150,031		$	73,356		$	55,608		$	32,495		$	29,608		$	341,098
Loans:
Individually evaluated for impairment	$	1,248		$	920		$	2,168		$	1,240		$	116		$	3,476		$	515		$	7,515
Collectively evaluated for impairment		10,145,205			3,032,138			13,177,343			3,559,751			1,703,476			3,089,129			1,576,832			23,106,531
Total loans	$	10,146,453		$	3,033,058		$	13,179,511		$	3,560,991		$	1,703,592		$	3,092,605		$	1,577,347		$	23,114,046

The calculation of the allowance for credit losses is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated. The allowance for credit losses for collectively evaluated portfolios is developed using multiple Moody’s Analytics (“Moody’s”) macroeconomic forecasts applied to internally developed credit models for a two year reasonable and supportable period. These forecasts are anchored on a baseline economic forecast, which Moody’s defines as the “most likely outcome” based on current conditions and its view of where the economy is headed. The baseline scenario is positioned at the 50th percentile of possible outcomes. Several upside and downside alternative scenarios are also derived from that baseline scenario and considered when

assessing reasonably possible outcomes. The mix of macroeconomic variables underlying the December 2023 scenarios differ in some respects from the comparable forecasts available at December 2022, given the shift in economic circumstances and risks.

The modest decrease in the allowance for credit losses at December 31, 2023 compared to December 31, 2022 reflects relatively stable economic conditions, outlook and credit quality metrics for the year. In arriving at the allowance for credit losses at December 31, 2023, the Company weighted Moody’s December 2023 baseline economic forecast at 40% and downside mild recessionary S-2 scenario at 60%. The December 2023 baseline scenario maintains a generally optimistic outlook in its assumptions surrounding the drivers of economic growth, including its expectations of the effectiveness of the Federal Reserve's monetary policy in easing inflationary conditions without precipitating a recession. The S-2 scenario is less optimistic compared to the baseline, with the assumed combination of risk of a federal shutdown, rising political tensions, continuing elevated inflation, and reduced credit availability leading to a forecasted mild recession beginning in the first quarter of 2024 and lasting for three quarters.

The decrease in the allowance for credit losses at December 31, 2022 as compared to December 31, 2021 reflects improvement in economic conditions, particularly in the first half of the year, and in the Company’s credit quality metrics. In arriving at the allowance for credit losses at December 31, 2022, the Company weighted the baseline economic forecast at 25%, the downside recessionary scenario S-2 at 75%.

Nonaccrual Loans and Reportable Modified Loan Disclosures

The following table shows the composition of nonaccrual loans and those without an allowance for loan loss, by portfolio class.

	December 31,
	2023				2022
($ in thousands)	Total nonaccrual		Nonaccrual without allowance for loan loss		Total nonaccrual		Nonaccrual without allowance for loan loss
Commercial non-real estate	$	20,840	$	13,637	$	4,020	$	941
Commercial real estate - owner occupied		2,228		—		1,461		692
Total commercial and industrial		23,068		13,637		5,481		1,633
Commercial real estate - income producing		461		—		1,240		1,174
Construction and land development		815		—		309		—
Residential mortgages		26,137		—		25,269		1,884
Consumer		8,555		—		6,692		—
Total loans	$	59,036	$	13,637	$	38,991	$	4,691

As a part of our loss mitigation efforts, we may provide modifications to borrowers experiencing financial difficulty to improve long-term collectability of the loans and to avoid the need for repossession or foreclosure of collateral. As described in Note 1 – Summary of Significant Accounting Policies and Recent Accounting Pronouncements, accounting and reporting requirements changed related to such modifications effective January 1, 2023, impacting the comparability between periods of the disclosures that follow.

Nonaccrual loans include reportable nonaccruing modified loans to borrowers experiencing financial difficulty ("MEFDs") of $0.1 million at December 31, 2023 and loans modified in troubled debt restructurings ("TDRs") of $2.6 million, at December 31, 2022. Total reportable MEFDs, both accruing and nonaccruing, were $24.5 million at December 31, 2023 and total TDRs were $4.5 million at December 31, 2022. At December 31, 2023 the Company had $0.7 million of unfunded commitments to borrowers whose terms have been modified as a reportable MEFD. There were no unfunded commitments loans reported as TDR at December 31, 2022.

The table below presents provide detail by portfolio class for reportable MEFDs entered into during the year ended December 31, 2023.

	Year Ended December 31, 2023
	Term extension					Payment delay					Term extensions and payment delay					Other(1)
($ in thousands)	Balance		Percentage of portfolio			Balance		Percentage of portfolio			Balance		Percentage of portfolio			Balance		Percentage of portfolio
Commercial non-real estate	$	7,930		0.08	%	$	4,274		0.04	%	$	9,753		0.10	%	$	—		—
Commercial real estate - owner occupied		1,774		0.06	%		—		—			—		—			—		—
Total commercial and industrial		9,704		0.07	%		4,274		0.03	%		9,753		0.07	%		—		—
Commercial real estate - income producing		—		—			—		—			—		—			—		—
Construction and land development		85		0.01	%		—		—			—		—			—		—
Residential mortgages		254		0.01	%		—		—			—		—			202		0.01	%
Consumer		78		0.01	%		—		—			196		0.01	%		—		—
Total reportable modified loans	$	10,121		0.04	%	$	4,274		0.02	%	$	9,949		0.04	%	$	202		0.00	%

(1) Includes interest rate reduction and other than insignificant payment delays

Reportable modifications to borrowers experiencing financial difficulty during the year ended December 31, 2023 consisted of weighted average term extensions totaling 10 months for commercial, 10 years for residential mortgage and eight years for consumer. The weighted average term of other than insignificant payment delays was three months. The weighted average interest rate reduction was 80 basis points. Reported term extensions and payment delays are considered more than insignificant if they exceeded six months when considering other modifications made in the past twelve months.

The table below presents the aging analysis of reportable modifications to borrowers experiencing financial difficulty by portfolio class at December 31, 2023.

December 31, 2023	30-59 days past due		60-89 days past due		Greater than 90 days past due		Total past due		Current		Total reportable modified Loans
(in thousands)
Commercial non-real estate	$	3,149	$	233	$	4,430	$	7,812	$	14,145	$	21,957
Commercial real estate - owner occupied		—		—		—		—		1,774		1,774
Total commercial and industrial		3,149		233		4,430		7,812		15,919		23,731
Commercial real estate - income producing		—		—		—		—		—		—
Construction and land development		—		—		—		—		85		85
Residential mortgages		66		—		—		66		390		456
Consumer		—		—		—		—		274		274
Total reportable modified loans	$	3,215	$	233	$	4,430	$	7,878	$	16,668	$	24,546

There was one commercial non-real estate loan totaling $4.4 million with a reportable significant payment delay and a term extension modification that had a post modification payment default during the twelve months ended December 31, 2023. A payment default occurs if the loan is either 90 days or more delinquent or has been charged off as of the end of the period presented.

During the year ended December 31, 2022, three residential mortgage loans and three consumer loans with pre and post modification balances totaling $0.2 million were classified as TDRs. The TDRs modified during the year ended December 31, 2022, included $0.1 million of loans with reduced interest rates and $0.1 million with other modifications. Three commercial non real estate loans totaling $3.1 million and two residential mortgage loans and four consumer loans totaling $0.3 million with payment defaults during the year ended December 31, 2022 had been modified in a TDR in the twelve months preceding default.

During the year ended December 31, 2021, four commercial non-real estate loans with pre and post modification balances of $7.2 million and six residential mortgage loans and four consumer loans with pre and post modification balances totaling $1.6 million were classified as TDRs. The TDRs modified during the year ended December 31, 2021, included $7.1 million of loans with extended amortization terms or other payment concessions, $0.5 million with reduced interest rates and $1.2 million with other modifications. One residential mortgage loan totaling $0.6 million with a payment defaulted during the year ended December 31, 2021 had been modified in a TDR during the twelve months prior to default.

Aging Analysis

The tables below present the aging analysis of past due loans by portfolio class at December 31, 2023 and 2022.

December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
($ in thousands)
Commercial non-real estate	$	12,311	$	4,381	$	21,132	$	37,824	$	9,919,460	$	9,957,284	$	5,782
Commercial real estate - owner occupied		1,614		1,596		1,715		4,925		3,088,838		3,093,763		431
Total commercial and industrial		13,925		5,977		22,847		42,749		13,008,298		13,051,047		6,213
Commercial real estate - income producing		3,938		606		408		4,952		3,981,991		3,986,943		—
Construction and land development		1,655		1,220		1,208		4,083		1,547,008		1,551,091		742
Residential mortgages		40,189		9,121		18,960		68,270		3,817,802		3,886,072		172
Consumer		11,059		5,957		6,611		23,627		1,423,137		1,446,764		2,482
Total loans	$	70,766	$	22,881	$	50,034	$	143,681	$	23,778,236	$	23,921,917	$	9,609

December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
($ in thousands)
Commercial non-real estate	$	4,050	$	21,329	$	3,418	$	28,797	$	10,117,656	$	10,146,453	$	996
Commercial real estate - owner occupied		19,069		3,346		1,894		24,309		3,008,749		3,033,058		1,623
Total commercial and industrial		23,119		24,675		5,312		53,106		13,126,405		13,179,511		2,619
Commercial real estate - income producing		879		—		1,174		2,053		3,558,938		3,560,991		—
Construction and land development		4,029		242		133		4,404		1,699,188		1,703,592		54
Residential mortgages		28,208		11,056		17,346		56,610		3,035,995		3,092,605		293
Consumer		8,845		2,806		4,407		16,058		1,561,289		1,577,347		1,619
Total loans	$	65,080	$	38,779	$	28,372	$	132,231	$	22,981,815	$	23,114,046	$	4,585

Credit Quality Indicators

The following tables present the credit quality indicators by segment and portfolio class of loans at December 31, 2023 and December 31, 2022.

	December 31, 2023
($ in thousands)	Commercial Non- Real Estate		Commercial Real Estate - Owner Occupied		Total Commercial and Industrial		Commercial Real Estate - Income Producing		Construction and Land Development		Total Commercial
Grade:
Pass	$	9,524,018	$	3,016,277	$	12,540,295	$	3,799,004	$	1,542,460	$	17,881,759
Pass-Watch		234,211		52,027		286,238		139,932		7,460		433,630
Special Mention		11,486		6,647		18,133		40,826		356		59,315
Substandard		187,569		18,812		206,381		7,181		815		214,377
Doubtful		—		—		—		—		—		—
Total	$	9,957,284	$	3,093,763	$	13,051,047	$	3,986,943	$	1,551,091	$	18,589,081

	December 31, 2022
($ in thousands)	Commercial Non- Real Estate		Commercial Real Estate - Owner Occupied		Total Commercial and Industrial		Commercial Real Estate - Income Producing		Construction and Land Development		Total Commercial
Grade:
Pass	$	9,641,117	$	2,912,057	$	12,553,174	$	3,440,648	$	1,690,756	$	17,684,578
Pass-Watch		284,843		49,093		333,936		111,587		12,097		457,620
Special Mention		79,980		6,267		86,247		3,810		196		90,253
Substandard		140,513		65,641		206,154		4,946		543		211,643
Doubtful		—		—		—		—		—		—
Total	$	10,146,453	$	3,033,058	$	13,179,511	$	3,560,991	$	1,703,592	$	18,444,094

	December 31, 2023						December 31, 2022
($ in thousands)	Residential Mortgage		Consumer		Total		Residential Mortgage		Consumer		Total
Performing	$	3,859,935	$	1,438,209	$	5,298,144	$	3,066,319	$	1,570,186	$	4,636,505
Nonperforming		26,137		8,555		34,692		26,286		7,161		33,447
Total	$	3,886,072	$	1,446,764	$	5,332,836	$	3,092,605	$	1,577,347	$	4,669,952

The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process. Below are the definitions of the Company’s internally assigned grades:

Commercial:

•Pass - loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk.

•Pass - Watch - credits in this category are of sufficient risk to cause concern. This category is reserved for credits that display negative performance trends. The “Watch” grade should be regarded as a transition category.

•Special Mention - a criticized asset category defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Special mention credits are not considered part of the Classified credit categories and do not expose an institution to sufficient risk to warrant adverse classification.

•Substandard - an asset that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must 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 - an asset that has all the weaknesses inherent in one classified 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.

•Loss - credits classified as Loss are considered uncollectable and are charged off promptly once so classified.

Residential and Consumer:

•Performing – accruing loans

•Nonperforming – loans for which there are good reasons to doubt that payments will be made in full. Nonperforming loans include all loans with nonaccrual status and, prior to January 1, 2023, all loans that were modified in a troubled debt restructuring are classified as nonperforming.

Vintage Analysis

The following tables present credit quality disclosures of amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing at December 31, 2023 and 2022. The Company defines vintage as the later of origination, renewal or restructure date.

	Term Loans														Revolving Loans
December 31, 2023	Amortized Cost Basis by Origination Year												Revolving		Converted to
($ in thousands)	2023		2022		2021		2020		2019		Prior		Loans		Term Loans		Total
Commercial Non-Real Estate:
Pass	$	1,557,202	$	1,812,370	$	1,106,433	$	483,739	$	398,626	$	923,143	$	3,186,189	$	56,316	$	9,524,018
Pass-Watch		30,360		60,228		20,730		8,245		4,988		9,117		94,252		6,291		234,211
Special Mention		411		6,206		936		27		26		836		2,620		424		11,486
Substandard		48,264		48,178		18,882		8,058		3,079		1,660		54,453		4,995		187,569
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	1,636,237	$	1,926,982	$	1,146,981	$	500,069	$	406,719	$	934,756	$	3,337,514	$	68,026	$	9,957,284
Gross Charge-offs	$	7,885	$	1,179	$	1,484	$	27,000	$	81	$	1,750	$	11,971	$	8,480	$	59,830
Commercial Real Estate - Owner Occupied:
Pass	$	374,466	$	689,626	$	620,272	$	501,054	$	284,032	$	493,707	$	40,533	$	12,587	$	3,016,277
Pass-Watch		2,574		9,587		9,654		3,451		8,791		17,581		389		—		52,027
Special Mention		837		—		617		—		110		5,083		—		—		6,647
Substandard		2,322		4,956		967		1,295		584		7,374		1,314		—		18,812
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	380,199	$	704,169	$	631,510	$	505,800	$	293,517	$	523,745	$	42,236	$	12,587	$	3,093,763
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate - Income Producing:
Pass	$	456,334	$	953,501	$	966,402	$	618,003	$	323,344	$	367,010	$	65,486	$	48,924	$	3,799,004
Pass-Watch		9,469		3,064		3,886		75,182		23,827		22,504		2,000		—		139,932
Special Mention		156		32,255		—		354		—		8,061		—		—		40,826
Substandard		4,086		1,921		286		—		122		766		—		—		7,181
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	470,045	$	990,741	$	970,574	$	693,539	$	347,293	$	398,341	$	67,486	$	48,924	$	3,986,943
Gross Charge-offs	$	73	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	73
Construction and Land Development:
Pass	$	388,453	$	676,687	$	248,036	$	62,086	$	6,008	$	18,834	$	139,587	$	2,769	$	1,542,460
Pass-Watch		3,067		2,820		827		83		128		323		212		—		7,460
Special Mention		294		—		—		—		62		—		—		—		356
Substandard		—		87		96		49		9		279		295		—		815
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	391,814	$	679,594	$	248,959	$	62,218	$	6,207	$	19,436	$	140,094	$	2,769	$	1,551,091
Gross Charge-offs	$	—	$	7	$	54	$	—	$	—	$	11	$	—	$	—	$	72
Residential Mortgage:
Performing	$	439,024	$	910,361	$	950,400	$	489,262	$	176,041	$	891,232	$	3,615	$	—	$	3,859,935
Nonperforming		561		2,233		3,260		730		2,366		16,987		—		—		26,137
Total	$	439,585	$	912,594	$	953,660	$	489,992	$	178,407	$	908,219	$	3,615	$	—	$	3,886,072
Gross Charge-offs	$	—	$	—	$	—	$	—	$	—	$	55	$	—	$	—	$	55
Consumer Loans:
Performing	$	75,615	$	59,454	$	36,693	$	28,076	$	31,802	$	39,150	$	1,144,401	$	23,018	$	1,438,209
Nonperforming		176		237		245		438		445		2,528		369		4,117		8,555
Total	$	75,791	$	59,691	$	36,938	$	28,514	$	32,247	$	41,678	$	1,144,770	$	27,135	$	1,446,764
Gross Charge-offs	$	567	$	2,388	$	1,473	$	215	$	573	$	824	$	7,735	$	1,618	$	15,393

	Term Loans														Revolving Loans
December 31, 2022	Amortized Cost Basis by Origination Year												Revolving		Converted to
($ in thousands)	2022		2021		2020		2019		2018		Prior		Loans		Term Loans		Total
Commercial Non-Real Estate:
Pass	$	2,600,656	$	1,450,689	$	679,355	$	569,842	$	267,025	$	763,122	$	3,193,769	$	116,659	$	9,641,117
Pass-Watch		68,307		38,949		31,841		11,757		8,237		49,577		66,339		9,836		284,843
Special Mention		30,276		13,625		2,443		4,406		322		1,654		25,184		2,070		79,980
Substandard		29,667		13,807		11,766		21,667		12,792		1,250		39,213		10,351		140,513
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	2,728,906	$	1,517,070	$	725,405	$	607,672	$	288,376	$	815,603	$	3,324,505	$	138,916	$	10,146,453
Commercial Real Estate - Owner Occupied:
Pass	$	630,121	$	650,742	$	537,849	$	328,364	$	265,437	$	447,707	$	46,730	$	5,107	$	2,912,057
Pass-Watch		7,129		5,299		3,743		13,301		10,872		7,706		893		150		49,093
Special Mention		—		—		544		822		1,231		3,670		—		—		6,267
Substandard		19,899		547		6,715		7,663		7,543		21,465		1,000		809		65,641
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	657,149	$	656,588	$	548,851	$	350,150	$	285,083	$	480,548	$	48,623	$	6,066	$	3,033,058
Commercial Real Estate - Income Producing:
Pass	$	894,522	$	795,378	$	660,235	$	420,435	$	232,145	$	317,446	$	113,487	$	7,000	$	3,440,648
Pass-Watch		1,027		18,070		58,256		20,865		12,066		836		467		—		111,587
Special Mention		235		—		708		2,325		166		376		—		—		3,810
Substandard		415		—		2,785		8		1,240		498		—		—		4,946
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	896,199	$	813,448	$	721,984	$	443,633	$	245,617	$	319,156	$	113,954	$	7,000	$	3,560,991
Construction and Land Development:
Pass	$	663,735	$	711,731	$	148,579	$	9,198	$	15,360	$	10,854	$	128,842	$	2,457	$	1,690,756
Pass-Watch		8,233		1,944		643		559		199		450		69		—		12,097
Special Mention		—		—		—		196		—		—		—		—		196
Substandard		35		55		—		12		61		380		—		—		543
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	672,003	$	713,730	$	149,222	$	9,965	$	15,620	$	11,684	$	128,911	$	2,457	$	1,703,592
Residential Mortgage:
Performing	$	631,339	$	694,104	$	518,705	$	192,431	$	107,675	$	918,918	$	3,147	$	—	$	3,066,319
Nonperforming		1,058		2,434		716		1,196		2,080		18,802		—		—		26,286
Total	$	632,397	$	696,538	$	519,421	$	193,627	$	109,755	$	937,720	$	3,147	$	—	$	3,092,605
Consumer Loans:
Performing	$	103,742	$	58,248	$	45,641	$	62,715	$	41,559	$	40,489	$	1,212,958	$	4,834	$	1,570,186
Nonperforming		193		198		228		758		381		3,341		459		1,603		7,161
Total	$	103,935	$	58,446	$	45,869	$	63,473	$	41,940	$	43,830	$	1,213,417	$	6,437	$	1,577,347

Residential Mortgage Loans in Process of Foreclosure

Loans in process of foreclosure include those for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. Included in loans are $7.1 million and $4.9 million of consumer loans secured by single family residential mortgage real estate that are in process of foreclosure as of December 31, 2023 and 2022, respectively. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $1.6 million and $0.4 million of foreclosed single family residential properties in other real estate owned as of December 31, 2023 and 2022, respectively.

Loans Held for Sale

Loans held for sale totaled $26.1 million and $26.4 million, respectively, at December 31, 2023 and 2022. At December 31, 2023, residential mortgage loans carried at the fair value option totaled $13.3 million with an unpaid principal balance of $12.9 million. All other loans held for sale are carried at lower of cost or market.