Activity In The Allowance For Loan Losses |
The activity in the allowance for loan losses for the three-month periods ended March 31, 2020 and March 31, 2019 is summarized in the following tables. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 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 | $ | 20,203 | | | $ | 10,229 | | | $ | 5,311 | | | $ | 8,610 | | | $ | 12,211 | | | $ | 115 | | | $ | 56,679 | | Charge-offs | 523 | | | — | | | 6 | | | 71 | | | 2,085 | | | — | | | 2,685 | | Recoveries | 700 | | | 300 | | | 230 | | | 96 | | | 1,030 | | | — | | | 2,356 | | Net (recoveries)/charge-offs | (177) | | | (300) | | | (224) | | | (25) | | | 1,055 | | | — | | | 329 | | Provision/(recovery) | 1,164 | | | 1,062 | | | (42) | | | 382 | | | 2,572 | | | 15 | | | 5,153 | | Ending balance | $ | 21,544 | | | $ | 11,591 | | | $ | 5,493 | | | $ | 9,017 | | | $ | 13,728 | | | $ | 130 | | | $ | 61,503 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 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 | $ | 16,777 | | | $ | 9,768 | | | $ | 4,463 | | | $ | 8,731 | | | $ | 11,773 | | | $ | — | | | $ | 51,512 | | Charge-offs | 198 | | | 54 | | | — | | | 29 | | | 2,706 | | | — | | | 2,987 | | Recoveries | 416 | | | 59 | | | 88 | | | 382 | | | 1,400 | | | — | | | 2,345 | | Net (recoveries)/charge-offs | (218) | | | (5) | | | (88) | | | (353) | | | 1,306 | | | — | | | 642 | | Provision | 342 | | | 420 | | | 13 | | | 86 | | | 1,637 | | | — | | | 2,498 | | Ending balance | $ | 17,337 | | | $ | 10,193 | | | $ | 4,564 | | | $ | 9,170 | | | $ | 12,104 | | | $ | — | | | $ | 53,368 | |
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Composition Of The Allowance For Loan Losses |
The composition of the allowance for loan losses at March 31, 2020 and December 31, 2019 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 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 | $ | 5,365 | | | $ | 96 | | | $ | — | | | $ | 25 | | | $ | — | | | $ | 45 | | | $ | 5,531 | | Collectively evaluated for impairment | 16,138 | | | 11,487 | | | 5,493 | | | 8,922 | | | 13,728 | | | 85 | | | 55,853 | | Acquired with deteriorated credit quality | 41 | | | 8 | | | — | | | 70 | | | — | | | — | | | 119 | | Total ending allowance balance | $ | 21,544 | | | $ | 11,591 | | | $ | 5,493 | | | $ | 9,017 | | | $ | 13,728 | | | $ | 130 | | | $ | 61,503 | | | | | | | | | | | | | | | | Loan balance: | | | | | | | | | | | | | | Loans individually evaluated for impairment | $ | 29,500 | | | $ | 49,984 | | | $ | 452 | | | $ | 5,581 | | | $ | — | | | $ | 129 | | | $ | 85,646 | | Loans collectively evaluated for impairment | 1,172,741 | | | 1,568,199 | | | 333,500 | | | 1,868,949 | | | 1,451,296 | | | 28,423 | | | 6,423,108 | | Loans acquired with deteriorated credit quality | 616 | | | 9,243 | | | 1,126 | | | 2,439 | | | 1 | | | 340 | | | 13,765 | | Total ending loan balance | $ | 1,202,857 | | | $ | 1,627,426 | | | $ | 335,078 | | | $ | 1,876,969 | | | $ | 1,451,297 | | | $ | 28,892 | | | $ | 6,522,519 | | | | | | | | | | | | | | | | Allowance for loan losses as a percentage of loan balance: | | | | | | | | | | | | | | Loans individually evaluated for impairment | 18.19 | % | | 0.19 | % | | — | % | | 0.45 | % | | — | % | | 34.88 | % | | 6.46 | % | Loans collectively evaluated for impairment | 1.38 | % | | 0.73 | % | | 1.65 | % | | 0.48 | % | | 0.95 | % | | 0.30 | % | | 0.87 | % | Loans acquired with deteriorated credit quality | 6.66 | % | | 0.09 | % | | — | % | | 2.87 | % | | — | % | | — | % | | — | % | Total | 1.79 | % | | 0.71 | % | | 1.64 | % | | 0.48 | % | | 0.95 | % | | 0.45 | % | | 0.94 | % | | | | | | | | | | | | | | | Recorded investment: | | | | | | | | | | | | | | Loans individually evaluated for impairment | $ | 29,542 | | | $ | 50,147 | | | $ | 452 | | | $ | 5,581 | | | $ | — | | | $ | 129 | | | $ | 85,851 | | Loans collectively evaluated for impairment | 1,177,272 | | | 1,573,559 | | | 334,467 | | | 1,872,578 | | | 1,455,502 | | | 28,440 | | | 6,441,818 | | Loans acquired with deteriorated credit quality | 620 | | | 9,337 | | | 1,129 | | | 2,452 | | | 1 | | | 340 | | | 13,879 | | Total ending recorded investment | $ | 1,207,434 | | | $ | 1,633,043 | | | $ | 336,048 | | | $ | 1,880,611 | | | $ | 1,455,503 | | | $ | 28,909 | | | $ | 6,541,548 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 are 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.
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