LOANS AND ALLOWANCE FOR CREDIT LOSSES |
4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio follows: | | | | | | | | (in thousands) | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | Traditional Banking: | | | | | | | | Residential real estate: | | | | | | | | Owner occupied | | $ | 827,898 | | $ | 879,800 | | Nonowner occupied | | | 294,818 | | | 264,780 | | Commercial real estate | | | 1,393,241 | | | 1,349,085 | | Construction & land development | | | 105,968 | | | 98,674 | | Commercial & industrial | | | 333,795 | | | 325,596 | | Paycheck Protection Program | | | 126,271 | | | 392,319 | | Lease financing receivables | | | 9,427 | | | 10,130 | | Aircraft | | | 130,398 | | | 101,375 | | Home equity | | | 215,282 | | | 240,640 | | Consumer: | | | | | | | | Credit cards | | | 14,781 | | | 14,196 | | Overdrafts | | | 753 | | | 587 | | Automobile loans | | | 17,533 | | | 30,300 | | Other consumer | | | 6,223 | | | 8,167 | | Total Traditional Banking | | | 3,476,388 | | | 3,715,649 | | Warehouse lines of credit* | | | 750,682 | | | 962,796 | | Total Core Banking | | | 4,227,070 | | | 4,678,445 | | | | | | | | | | Republic Processing Group*: | | | | | | | | Tax Refund Solutions: | | | | | | | | Easy Advances | | | — | | | — | | Other TRS loans | | | 1 | | | — | | Republic Credit Solutions | | | 116,711 | | | 110,893 | | Total Republic Processing Group | | | 116,712 | | | 110,893 | | | | | | | | | | Total loans** | | | 4,343,782 | | | 4,789,338 | | Allowance for credit losses | | | (63,024) | | | (61,067) | | | | | | | | | | Total loans, net | | $ | 4,280,758 | | $ | 4,728,271 | |
*Identifies loans to borrowers located primarily outside of the Bank’s market footprint. **Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans: | | | | | | | | (in thousands) | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | Contractually receivable | | $ | 4,348,535 | | $ | 4,797,297 | | Unearned income | | | (598) | | | (708) | | Unamortized premiums | | | 121 | | | 216 | | Unaccreted discounts | | | (688) | | | (988) | | PPP net unamortized deferred origination fees and costs | | | (3,986) | | | (8,564) | | Other net unamortized deferred origination fees and costs | | | 398 | | | 2,085 | | Carrying value of loans | | $ | 4,343,782 | | $ | 4,789,338 | |
Paycheck Protection Program The CARES Act was enacted in March 2020 and provided for the SBA’s PPP, which allowed the Bank to lend to its qualifying small business clients to assist them in their efforts to meet their cash-flow needs during the COVID-19 pandemic. The Economic Aid Act was enacted in December 2020 and provided for a second round of PPP loans. PPP loans are fully backed by the SBA and may be entirely forgiven if the loan client uses loan funds for qualifying reasons. As of September 30, 2021, net PPP loans of $126 million remained on the Traditional Bank’s balance sheet, including $19 million in loan balances originated during 2020, $111 million in loan balances originated during 2021, and $4 million of unaccreted PPP fees reported as a credit offset to these originated balances. Unaccreted PPP fees will generally be recognized into income over the estimated remaining life of the PPP portfolio, with fee recognition accelerated if loans are forgiven or repaid earlier than estimated. To provide liquidity to banks administering the SBA’s PPP, the FRB created the PPPLF, a lending facility secured by the PPP loans of the participating banks. As of September 30, 2021, the Bank had no outstanding borrowings from the FRB under the PPPLF. Credit Quality Indicators The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Loan segments and risk categories as of September 30, 2021 remain unchanged from those defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Regarding origination year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as a TDR. Loan extensions and renewals classified as TDRs generally receive no change in origination date upon extension or renewal. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | Revolving Loans | | | | (in thousands) | | Term Loans Amortized Cost Basis by Origination Year | | Amortized | | Converted | | | | As of September 30, 2021 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Cost Basis | | to Term | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate owner occupied: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 170,594 | | $ | 229,444 | | $ | 96,923 | | $ | 56,318 | | $ | 251,929 | | $ | — | | $ | — | | $ | 805,208 | Special Mention | | | 304 | | | — | | | — | | | 36 | | | 8,509 | | | — | | | — | | | 8,849 | Substandard | | | — | | | 557 | | | 685 | | | 1,006 | | | 11,593 | | | — | | | — | | | 13,841 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 170,898 | | $ | 230,001 | | $ | 97,608 | | $ | 57,360 | | $ | 272,031 | | $ | — | | $ | — | | $ | 827,898 | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate nonowner occupied: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 75,983 | | $ | 71,290 | | $ | 50,082 | | $ | 32,111 | | $ | 61,625 | | $ | — | | $ | 3,588 | | $ | 294,679 | Special Mention | | | — | | | — | | | — | | | — | | | 40 | | | — | | | — | | | 40 | Substandard | | | — | | | — | | | — | | | — | | | 99 | | | — | | | — | | | 99 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 75,983 | | $ | 71,290 | | $ | 50,082 | | $ | 32,111 | | $ | 61,764 | | $ | — | | $ | 3,588 | | $ | 294,818 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 362,616 | | $ | 271,691 | | $ | 179,046 | | $ | 104,300 | | $ | 311,904 | | $ | — | | $ | 79,005 | | $ | 1,308,562 | Special Mention | | | 12,103 | | | 2,411 | | | 29,879 | | | 11,535 | | | 19,767 | | | — | | | — | | | 75,695 | Substandard | | | — | | | 2,576 | | | 266 | | | — | | | 3,941 | | | — | | | 2,201 | | | 8,984 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 374,719 | | $ | 276,678 | | $ | 209,191 | | $ | 115,835 | | $ | 335,612 | | $ | — | | $ | 81,206 | | $ | 1,393,241 | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 59,659 | | $ | 37,136 | | $ | 4,384 | | $ | 1,527 | | $ | 593 | | $ | — | | $ | — | | $ | 103,299 | Special Mention | | | — | | | 310 | | | 2,359 | | | — | | | — | | | — | | | — | | | 2,669 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 59,659 | | $ | 37,446 | | $ | 6,743 | | $ | 1,527 | | $ | 593 | | $ | — | | $ | — | | $ | 105,968 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 117,127 | | $ | 55,354 | | $ | 66,818 | | $ | 21,262 | | $ | 48,361 | | $ | — | | $ | 4,112 | | $ | 313,034 | Special Mention | | | 15,398 | | | 2,344 | | | 800 | | | 43 | | | 2,095 | | | — | | | — | | | 20,680 | Substandard | | | — | | | 48 | | | — | | | — | | | 33 | | | — | | | — | | | 81 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 132,525 | | $ | 57,746 | | $ | 67,618 | | $ | 21,305 | | $ | 50,489 | | $ | — | | $ | 4,112 | | $ | 333,795 | | | | | | | | | | | | | | | | | | | | | | | | | | Paycheck Protection Program: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 107,498 | | $ | 18,773 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 126,271 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 107,498 | | $ | 18,773 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 126,271 | | | | | | | | | | | | | | | | | | | | | | | | | | Lease financing receivables: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 2,068 | | $ | 903 | | $ | 2,896 | | $ | 1,406 | | $ | 2,154 | | $ | — | | $ | — | | $ | 9,427 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 2,068 | | $ | 903 | | $ | 2,896 | | $ | 1,406 | | $ | 2,154 | | $ | — | | $ | — | | $ | 9,427 | | | | | | | | | | | | | | | | | | | | | | | | | | Aircraft: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 47,983 | | $ | 46,405 | | $ | 24,134 | | $ | 10,049 | | $ | 1,827 | | $ | — | | $ | — | | $ | 130,398 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 47,983 | | $ | 46,405 | | $ | 24,134 | | $ | 10,049 | | $ | 1,827 | | $ | — | | $ | — | | $ | 130,398 | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 213,297 | | $ | — | | $ | 213,297 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | 125 | | | — | | | 125 | Substandard | | | — | | | — | | | — | | | — | | | — | | | 1,860 | | | — | | | 1,860 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 215,282 | | $ | — | | $ | 215,282 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | Revolving Loans | | | | | (in thousands) | | Term Loans Amortized Cost Basis by Origination Year (Continued) | | Amortized | | Converted | | | | | As of September 30, 2021 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Cost Basis | | to Term | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 844 | | $ | 725 | | $ | 10,451 | | $ | 5,156 | | $ | 6,864 | | $ | 14,880 | | $ | — | | $ | 38,920 | | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | | — | | | — | | | 25 | | | 47 | | | 298 | | | — | | | — | | | 370 | | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total | | $ | 844 | | $ | 725 | | $ | 10,476 | | $ | 5,203 | | $ | 7,162 | | $ | 14,880 | | $ | — | | $ | 39,290 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Warehouse: | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 750,682 | | $ | — | | $ | 750,682 | | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 750,682 | | $ | — | | $ | 750,682 | | | | | | | | | | | | | | | | | | | | | | | | | | | | TRS: | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1 | | $ | — | | $ | 1 | | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1 | | $ | — | | $ | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | RCS: | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 23,112 | | $ | 9,275 | | $ | 2,387 | | $ | 985 | | $ | 3,943 | | $ | 76,004 | | $ | — | | $ | 115,706 | | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | | — | | | — | | | — | | | — | | | — | | | 1,005 | | | — | | | 1,005 | | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total | | $ | 23,112 | | $ | 9,275 | | $ | 2,387 | | $ | 985 | | $ | 3,943 | | $ | 77,009 | | $ | — | | $ | 116,711 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Grand Total: | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 967,484 | | $ | 740,996 | | $ | 437,121 | | $ | 233,114 | | $ | 689,200 | | $ | 1,054,864 | | $ | 86,705 | | $ | 4,209,484 | | Special Mention | | | 27,805 | | | 5,065 | | | 33,038 | | | 11,614 | | | 30,411 | | | 125 | | | — | | | 108,058 | | Substandard | | | — | | | 3,181 | | | 976 | | | 1,053 | | | 15,964 | | | 2,865 | | | 2,201 | | | 26,240 | | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Grand Total | | $ | 995,289 | | $ | 749,242 | | $ | 471,135 | | $ | 245,781 | | $ | 735,575 | | $ | 1,057,854 | | $ | 88,906 | | $ | 4,343,782 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | Revolving Loans | | | | (in thousands) | | Term Loans Amortized Cost Basis by Origination Year | | Amortized | | Converted | | | | As of December 31, 2020 | | 2020 | | 2019 | | 2018 | | 2017 | | Prior | | Cost Basis | | to Term | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate owner occupied: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 268,313 | | $ | 132,018 | | $ | 82,754 | | $ | 67,430 | | $ | 301,366 | | $ | — | | $ | — | | $ | 851,881 | Special Mention | | | — | | | 364 | | | 42 | | | 1,610 | | | 8,730 | | | — | | | — | | | 10,746 | Substandard | | | 394 | | | 1,423 | | | 1,331 | | | 614 | | | 13,411 | | | — | | | — | | | 17,173 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 268,707 | | $ | 133,805 | | $ | 84,127 | | $ | 69,654 | | $ | 323,507 | | $ | — | | $ | — | | $ | 879,800 | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate nonowner occupied: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 73,291 | | $ | 63,102 | | $ | 43,610 | | $ | 45,759 | | $ | 38,316 | | $ | — | | $ | 621 | | $ | 264,699 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | 81 | | | — | | | — | | | 81 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 73,291 | | $ | 63,102 | | $ | 43,610 | | $ | 45,759 | | $ | 38,397 | | $ | — | | $ | 621 | | $ | 264,780 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 315,550 | | $ | 258,251 | | $ | 166,542 | | $ | 171,207 | | $ | 315,336 | | $ | — | | $ | 55,949 | | $ | 1,282,835 | Special Mention | | | 3,397 | | | 30,969 | | | 236 | | | 11,355 | | | 9,659 | | | — | | | — | | | 55,616 | Substandard | | | 2,596 | | | 349 | | | — | | | 987 | | | 3,899 | | | — | | | 2,803 | | | 10,634 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 321,543 | | $ | 289,569 | | $ | 166,778 | | $ | 183,549 | | $ | 328,894 | | $ | — | | $ | 58,752 | | $ | 1,349,085 | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 53,972 | | $ | 31,756 | | $ | 7,840 | | $ | 701 | | $ | 1,964 | | $ | — | | $ | — | | $ | 96,233 | Special Mention | | | — | | | 2,397 | | | — | | | — | | | — | | | — | | | — | | | 2,397 | Substandard | | | — | | | 44 | | | — | | | — | | | — | | | — | | | — | | | 44 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 53,972 | | $ | 34,197 | | $ | 7,840 | | $ | 701 | | $ | 1,964 | | $ | — | | $ | — | | $ | 98,674 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 105,985 | | $ | 84,575 | | $ | 33,391 | | $ | 32,303 | | $ | 46,697 | | $ | — | | $ | 1,040 | | $ | 303,991 | Special Mention | | | 18,195 | | | 800 | | | — | | | — | | | 2,215 | | | — | | | — | | | 21,210 | Substandard | | | 383 | | | 12 | | | — | | | — | | | — | | | — | | | — | | | 395 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 124,563 | | $ | 85,387 | | $ | 33,391 | | $ | 32,303 | | $ | 48,912 | | $ | — | | $ | 1,040 | | $ | 325,596 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving Loans | | Revolving Loans | | | | (in thousands) | | Term Loans Amortized Cost Basis by Origination Year (Continued) | | Amortized | | Converted | | | | As of December 31, 2020 | | 2020 | | 2019 | | 2018 | | 2017 | | Prior | | Cost Basis | | to Term | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | Paycheck Protection Program: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 392,319 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 392,319 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 392,319 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 392,319 | | | | | | | | | | | | | | | | | | | | | | | | | | Lease financing receivables: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 1,117 | | $ | 3,663 | | $ | 1,814 | | $ | 2,847 | | $ | 689 | | $ | — | | $ | — | | $ | 10,130 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 1,117 | | $ | 3,663 | | $ | 1,814 | | $ | 2,847 | | $ | 689 | | $ | — | | $ | — | | $ | 10,130 | | | | | | | | | | | | | | | | | | | | | | | | | | Aircraft: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 55,823 | | $ | 30,529 | | $ | 13,804 | | $ | 1,219 | | $ | — | | $ | — | | $ | — | | $ | 101,375 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 55,823 | | $ | 30,529 | | $ | 13,804 | | $ | 1,219 | | $ | — | | $ | — | | $ | — | | $ | 101,375 | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 237,633 | | $ | — | | $ | 237,633 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | 127 | | | — | | | 127 | Substandard | | | — | | | — | | | — | | | — | | | — | | | 2,880 | | | — | | | 2,880 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 240,640 | | $ | — | | $ | 240,640 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 425 | | $ | 13,636 | | $ | 8,563 | | $ | 7,125 | | $ | 8,648 | | $ | 14,321 | | $ | — | | $ | 52,718 | Special Mention | | | — | | | — | | | — | | | — | | | 5 | | | — | | | — | | | 5 | Substandard | | | — | | | 32 | | | 49 | | | 229 | | | 212 | | | 5 | | | — | | | 527 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 425 | | $ | 13,668 | | $ | 8,612 | | $ | 7,354 | | $ | 8,865 | | $ | 14,326 | | $ | — | | $ | 53,250 | | | | | | | | | | | | | | | | | | | | | | | | | | Warehouse: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 962,796 | | $ | — | | $ | 962,796 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 962,796 | | $ | — | | $ | 962,796 | | | | | | | | | | | | | | | | | | | | | | | | | | TRS: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | RCS: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 27,683 | | $ | 5,704 | | $ | 2,485 | | $ | 1,232 | | $ | 19,095 | | $ | 54,348 | | $ | — | | $ | 110,547 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | 346 | | | — | | | 346 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 27,683 | | $ | 5,704 | | $ | 2,485 | | $ | 1,232 | | $ | 19,095 | | $ | 54,694 | | $ | — | | $ | 110,893 | | | | | | | | | | | | | | | | | | | | | | | | | | Grand Total: | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | Pass or not rated | | $ | 1,294,478 | | $ | 623,234 | | $ | 360,803 | | $ | 329,823 | | $ | 732,111 | | $ | 1,269,098 | | $ | 57,610 | | $ | 4,667,157 | Special Mention | | | 21,592 | | | 34,530 | | | 278 | | | 12,965 | | | 20,609 | | | 127 | | | — | | | 90,101 | Substandard | | | 3,373 | | | 1,860 | | | 1,380 | | | 1,830 | | | 17,603 | | | 3,231 | | | 2,803 | | | 32,080 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Grand Total | | $ | 1,319,443 | | $ | 659,624 | | $ | 362,461 | | $ | 344,618 | | $ | 770,323 | | $ | 1,272,456 | | $ | 60,413 | | $ | 4,789,338 |
Allowance for Credit Losses on Loans The following table presents the activity in the ACLL by portfolio class: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ACLL Rollforward | | | | Three Months Ended September 30, | | | | 2021 | | 2020 | | | | Beginning | | | | Charge- | | | | Ending | | Beginning | | | | | Charge- | | | | Ending | (in thousands) | | | Balance | | Provision | | offs | | Recoveries | | Balance | | Balance | | | Provision | | offs | | Recoveries | | Balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Owner occupied | | | $ | 8,977 | | $ | (677) | | $ | — | | $ | 329 | | $ | 8,629 | | $ | 9,303 | | | $ | 330 | | $ | (13) | | $ | 21 | | $ | 9,641 | Nonowner occupied | | | | 2,551 | | | 47 | | | — | | | — | | | 2,598 | | | 2,274 | | | | 96 | | | — | | | 7 | | | 2,377 | Commercial real estate | | | | 23,307 | | | 286 | | | — | | | 3 | | | 23,596 | | | 16,300 | | | | 4,663 | | | — | | | — | | | 20,963 | Construction & land development | | | | 3,299 | | | 376 | | | — | | | — | | | 3,675 | | | 4,940 | | | | (341) | | | — | | | — | | | 4,599 | Commercial & industrial | | | | 4,117 | | | (139) | | | (35) | | | 16 | | | 3,959 | | | 2,405 | | | | 654 | | | (255) | | | 80 | | | 2,884 | Paycheck Protection Program | | | | — | | | — | | | — | | | — | | | — | | | — | | | | — | | | — | | | — | | | — | Lease financing receivables | | | | 97 | | | 2 | | | — | | | — | | | 99 | | | 125 | | | | (8) | | | — | | | — | | | 117 | Aircraft | | | | 303 | | | 23 | | | — | | | — | | | 326 | | | 208 | | | | 11 | | | — | | | — | | | 219 | Home equity | | | | 4,305 | | | (63) | | | — | | | 5 | | | 4,247 | | | 5,124 | | | | (7) | | | (14) | | | 21 | | | 5,124 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Credit cards | | | | 949 | | | 22 | | | (40) | | | 20 | | | 951 | | | 928 | | | | 36 | | | (29) | | | 7 | | | 942 | Overdrafts | | | | 717 | | | 143 | | | (195) | | | 88 | | | 753 | | | 488 | | | | 324 | | | (157) | | | 50 | | | 705 | Automobile loans | | | | 273 | | | (34) | | | (19) | | | 6 | | | 226 | | | 473 | | | | (67) | | | — | | | — | | | 406 | Other consumer | | | | 467 | | | (28) | | | (25) | | | 14 | | | 428 | | | 609 | | | | 92 | | | (41) | | | 20 | | | 680 | Total Traditional Banking | | | | 49,362 | | | (42) | | | (314) | | | 481 | | | 49,487 | | | 43,177 | | | | 5,783 | | | (509) | | | 206 | | | 48,657 | Warehouse lines of credit | | | | 2,100 | | | (223) | | | — | | | — | | | 1,877 | | | 2,575 | | | | (3) | | | — | | | — | | | 2,572 | Total Core Banking | | | | 51,462 | | | (265) | | | (314) | | | 481 | | | 51,364 | | | 45,752 | | | | 5,780 | | | (509) | | | 206 | | | 51,229 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Republic Processing Group (includes discontinued operations): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Tax Refund Solutions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Easy Advances (discontinued operations) | | | | — | | | (2,242) | | | — | | | 2,242 | | | — | | | — | | | | (4,294) | | | — | | | 4,294 | | | — | Other TRS loans (discontinued operations) | | | | — | | | (19) | | | — | | | 19 | | | — | | | 211 | | | | (48) | | | (22) | | | — | | | 141 | Republic Credit Solutions (continuing operations) | | | | 8,829 | | | 3,820 | | | (1,064) | | | 75 | | | 11,660 | | | 9,134 | | | | (12) | | | (684) | | | 83 | | | 8,521 | Total Republic Processing Group | | | | 8,829 | | | 1,559 | | | (1,064) | | | 2,336 | | | 11,660 | | | 9,345 | | | | (4,354) | | | (706) | | | 4,377 | | | 8,662 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | $ | 60,291 | | $ | 1,294 | | $ | (1,378) | | $ | 2,817 | | $ | 63,024 | | $ | 55,097 | | | $ | 1,426 | | $ | (1,215) | | $ | 4,583 | | $ | 59,891 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ACLL Rollforward | | | | Nine Months Ended September 30, | | | | 2021 | | 2020 | | | | Beginning | | | | Charge- | | | | Ending | | | Beginning | | ASC 326 | | | | Charge- | | | | Ending | (in thousands) | | | Balance | | Provision | | offs | | Recoveries | | Balance | | | Balance | | Adoption | | Provision | | offs | | Recoveries | | Balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Owner occupied | | | $ | 9,715 | | $ | (1,461) | | $ | — | | $ | 375 | | $ | 8,629 | | $ | 4,729 | | | $ | 4,199 | | $ | 648 | | $ | (40) | | $ | 105 | | $ | 9,641 | Nonowner occupied | | | | 2,466 | | | 131 | | | — | | | 1 | | | 2,598 | | | 1,737 | | | | 148 | | | 481 | | | — | | | 11 | | | 2,377 | Commercial real estate | | | | 23,606 | | | 336 | | | (428) | | | 82 | | | 23,596 | | | 10,486 | | | | 273 | | | 10,002 | | | (270) | | | 472 | | | 20,963 | Construction & land development | | | | 3,274 | | | 401 | | | — | | | — | | | 3,675 | | | 2,152 | | | | 1,447 | | | 1,000 | | | — | | | — | | | 4,599 | Commercial & industrial | | | | 2,797 | | | 1,170 | | | (35) | | | 27 | | | 3,959 | | | 2,882 | | | | (1,318) | | | 1,643 | | | (447) | | | 124 | | | 2,884 | Paycheck Protection Program | | | | — | | | — | | | — | | | — | | | — | | | — | | | | — | | | — | | | — | | | — | | | — | Lease financing receivables | | | | 106 | | | (7) | | | — | | | — | | | 99 | | | 147 | | | | — | | | (30) | | | — | | | — | | | 117 | Aircraft | | | | 253 | | | 73 | | | — | | | — | | | 326 | | | 176 | | | | — | | | 43 | | | — | | | — | | | 219 | Home equity | | | | 4,990 | | | (789) | | | — | | | 46 | | | 4,247 | | | 2,721 | | | | 1,652 | | | 657 | | | (14) | | | 108 | | | 5,124 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Credit cards | | | | 929 | | | 108 | | | (130) | | | 44 | | | 951 | | | 1,020 | | | | 33 | | | 74 | | | (206) | | | 21 | | | 942 | Overdrafts | | | | 587 | | | 351 | | | (444) | | | 259 | | | 753 | | | 1,169 | | | | — | | | 13 | | | (660) | | | 183 | | | 705 | Automobile loans | | | | 399 | | | (178) | | | (19) | | | 24 | | | 226 | | | 612 | | | | (7) | | | (220) | | | (8) | | | 29 | | | 406 | Other consumer | | | | 577 | | | (137) | | | (56) | | | 44 | | | 428 | | | 374 | | | | 307 | | | (81) | | | (86) | | | 166 | | | 680 | Total Traditional Banking | | | | 49,699 | | | (2) | | | (1,112) | | | 902 | | | 49,487 | | | 28,205 | | | | 6,734 | | | 14,230 | | | (1,731) | | | 1,219 | | | 48,657 | Warehouse lines of credit | | | | 2,407 | | | (530) | | | — | | | — | | | 1,877 | | | 1,794 | | | | — | | | 778 | | | — | | | — | | | 2,572 | Total Core Banking | | | | 52,106 | | | (532) | | | (1,112) | | | 902 | | | 51,364 | | | 29,999 | | | | 6,734 | | | 15,008 | | | (1,731) | | | 1,219 | | | 51,229 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Republic Processing Group (includes discontinued operations): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Tax Refund Solutions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Easy Advances (discontinued operations) | | | | — | | | 7,984 | | | (10,256) | | | 2,272 | | | — | | | — | | | | — | | | 15,239 | | | (19,575) | | | 4,336 | | | — | Other TRS loans (discontinued operations) | | | | 158 | | | (134) | | | (51) | | | 27 | | | — | | | 234 | | | | — | | | — | | | (94) | | | 1 | | | 141 | Republic Credit Solutions (continuing operations) | | | | 8,803 | | | 5,037 | | | (2,427) | | | 247 | | | 11,660 | | | 13,118 | | | | — | | | 251 | | | (5,401) | | | 553 | | | 8,521 | Total Republic Processing Group | | | | 8,961 | | | 12,887 | | | (12,734) | | | 2,546 | | | 11,660 | | | 13,352 | | | | — | | | 15,490 | | | (25,070) | | | 4,890 | | | 8,662 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | $ | 61,067 | | $ | 12,355 | | $ | (13,846) | | $ | 3,448 | | $ | 63,024 | | $ | 43,351 | | | $ | 6,734 | | $ | 30,498 | | $ | (26,801) | | $ | 6,109 | | $ | 59,891 |
The cumulative loss rate used as the basis for the estimate of the Company’s ACLL as of September 30, 2021 was primarily based on a static pool analysis of each of the Company’s loan pools using the Company’s loss experience from 2013 through 2020, supplemented by qualitative factor adjustments for current and forecasted conditions. The Company employs one-year forecasts of unemployment and CRE values within its ACLL model, with reversion to long-term averages following the forecasted period. The cumulative loss rate within the Company’s ACLL also includes estimated losses based on an individual evaluation of loans which are either collateral dependent or which do not share risk characteristics with pooled loans, e.g., TDRs. For its CRE loan pool, the Company employed a one-year forecast of CRE vacancy rates through March 31, 2021 but discontinued use of this forecast during the second quarter of 2021 in favor of a one-year forecast of general CRE values. This change in forecast method had no material impact on the Company’s ACLL. Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans, nonperforming assets, and select credit quality ratios follows: | | | | | | | | (dollars in thousands) | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | Loans on nonaccrual status* | | $ | 20,252 | | $ | 23,548 | | Loans past due 90-days-or-more and still on accrual** | | | 691 | | | 47 | | Total nonperforming loans | | | 20,943 | | | 23,595 | | Other real estate owned | | | 1,845 | | | 2,499 | | Total nonperforming assets | | $ | 22,788 | | $ | 26,094 | | | | | | | | | | Credit Quality Ratios - Total Company: | | | | | | | | | | | | | | | | Nonperforming loans to total loans | | | 0.48 | % | | 0.49 | % | Nonperforming assets to total loans (including OREO) | | | 0.52 | | | 0.54 | | Nonperforming assets to total assets | | | 0.37 | | | 0.42 | | | | | | | | | | Credit Quality Ratios - Core Bank: | | | | | | | | | | | | | | | | Nonperforming loans to total loans | | | 0.48 | % | | 0.50 | % | Nonperforming assets to total loans (including OREO) | | | 0.52 | | | 0.56 | | Nonperforming assets to total assets | | | 0.39 | | | 0.45 | |
* | Loans on nonaccrual status include collateral-dependent loans. |
** | Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
The following tables present the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans: | | | | | | | | | | | | | | | | | | | | | | | | Past Due 90-Days-or-More | | | | Nonaccrual | | | and Still Accruing Interest* | | (in thousands) | | September 30, 2021 | | December 31, 2020 | | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | Owner occupied | | $ | 11,708 | | $ | 14,328 | | | $ | — | | $ | — | | Nonowner occupied | | | 99 | | | 81 | | | | — | | | — | | Commercial real estate | | | 6,607 | | | 6,762 | | | | — | | | — | | Construction & land development | | | — | | | — | | | | — | | | — | | Commercial & industrial | | | 93 | | | 55 | | | | — | | | — | | Paycheck Protection Program | | | — | | | | | | | — | | | — | | Lease financing receivables | | | — | | | — | | | | — | | | — | | Aircraft | | | — | | | | | | | — | | | — | | Home equity | | | 1,657 | | | 2,141 | | | | — | | | — | | Consumer: | | | | | | | | | | | | | | | Credit cards | | | — | | | — | | | | — | | | 5 | | Overdrafts | | | — | | | — | | | | — | | | — | | Automobile loans | | | 84 | | | 170 | | | | — | | | — | | Other consumer | | | 4 | | | 11 | | | | — | | | — | | Total Traditional Banking | | | 20,252 | | | 23,548 | | | | — | | | 5 | | Warehouse lines of credit | | | — | | | — | | | | — | | | — | | Total Core Banking | | | 20,252 | | | 23,548 | | | | — | | | 5 | | | | | | | | | | | | | | | | | Republic Processing Group: | | | | | | | | | | | | | | | Tax Refund Solutions: | | | | | | | | | | | | | | | Easy Advances | | | — | | | — | | | | — | | | — | | Other TRS loans | | | — | | | — | | | | — | | | — | | Republic Credit Solutions | | | — | | | — | | | | 691 | | | 42 | | Total Republic Processing Group | | | — | | | — | | | | 691 | | | 42 | | | | | | | | | | | | | | | | | Total | | $ | 20,252 | | $ | 23,548 | | | $ | 691 | | $ | 47 | |
* Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | As of September 30, 2021 | | September 30, 2021 | | September 30, 2021 | | | | Nonaccrual | | Nonaccrual | | Total | Interest Income | | Interest Income | | | Loans with | | Loans without | | Nonaccrual | | Recognized | | Recognized | (in thousands) | | ACLL | | ACLL | | Loans | | on Nonaccrual Loans* | | on Nonaccrual Loans* | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | Owner occupied | | $ | 2,041 | | $ | 9,667 | | $ | 11,708 | | $ | 225 | | $ | 672 | Nonowner occupied | | | 33 | | | 66 | | | 99 | | | 2 | | | 5 | Commercial real estate | | | 4,153 | | | 2,454 | | | 6,607 | | | 16 | | | 125 | Construction & land development | | | — | | | — | | | — | | | — | | | — | Commercial & industrial | | | 45 | | | 48 | | | 93 | | | — | | | 2 | Paycheck Protection Program | | | — | | | — | | | — | | | — | | | — | Lease financing receivables | | | — | | | — | | | — | | | — | | | — | Aircraft | | | — | | | — | | | — | | | — | | | — | Home equity | | | 63 | | | 1,594 | | | 1,657 | | | 19 | | | 121 | Consumer | | | 14 | | | 74 | | | 88 | | | 4 | | | 8 | Total | | $ | 6,349 | | $ | 13,903 | | $ | 20,252 | | $ | 266 | | $ | 933 |
* Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | As of December 31, 2020 | | September 30, 2020 | | September 30, 2020 | | | | Nonaccrual | | Nonaccrual | | Total | Interest Income | | Interest Income | | | Loans with | | Loans without | | Nonaccrual | | Recognized | | Recognized | (in thousands) | | ACLL | | ACLL | | Loans | | on Nonaccrual Loans* | | on Nonaccrual Loans* | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | Owner occupied | | $ | 1,995 | | $ | 12,333 | | $ | 14,328 | | $ | 252 | | $ | 649 | Nonowner occupied | | | 8 | | | 73 | | | 81 | | | 2 | | | 6 | Commercial real estate | | | 576 | | | 6,186 | | | 6,762 | | | 17 | | | 854 | Construction & land development | | | — | | | — | | | — | | | 7 | | | 7 | Commercial & industrial | | | — | | | 55 | | | 55 | | | 7 | | | 16 | Paycheck Protection Program | | | — | | | — | | | — | | | — | | | — | Lease financing receivables | | | — | | | — | | | — | | | — | | | — | Aircraft | | | — | | | — | | | — | | | — | | | — | Home equity | | | 91 | | | 2,050 | | | 2,141 | | | 29 | | | 81 | Consumer | | | 69 | | | 112 | | | 181 | | | 3 | | | 9 | | | $ | 2,739 | | $ | 20,809 | | $ | 23,548 | | $ | 317 | | $ | 1,622 |
* Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. TDRs on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Delinquent Loans The following tables present the aging of the recorded investment in loans by class of loans: | | | | | | | | | | | | | | | | | | | | | | 30 - 59 | | 60 - 89 | | 90 or More | | | | | | | | | | | September 30, 2021 | Days | | Days | | Days | | Total | | Total | | | | | (dollars in thousands) | | Delinquent | | Delinquent | | Delinquent* | | Delinquent** | | Current | | Total | | | | | | | | | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | Owner occupied | | $ | 896 | | $ | 315 | | $ | 917 | | $ | 2,128 | | $ | 825,770 | | $ | 827,898 | | Nonowner occupied | | | — | | | — | | | — | | | — | | | 294,818 | | | 294,818 | | Commercial real estate | | | — | | | — | | | 5,037 | | | 5,037 | | | 1,388,204 | | | 1,393,241 | | Construction & land development | | | — | | | — | | | — | | | — | | | 105,968 | | | 105,968 | | Commercial & industrial | | | 8 | | | — | | | 58 | | | 66 | | | 333,729 | | | 333,795 | | Paycheck Protection Program | | | — | | | — | | | — | | | — | | | 126,271 | | | 126,271 | | Lease financing receivables | | | — | | | — | | | — | | | — | | | 9,427 | | | 9,427 | | Aircraft | | | — | | | — | | | — | | | — | | | 130,398 | | | 130,398 | | Home equity | | | 50 | | | — | | | 209 | | | 259 | | | 215,023 | | | 215,282 | | Consumer: | | | | | | | | | | | | | | | | | | | | Credit cards | | | 36 | | | 9 | | | — | | | 45 | | | 14,736 | | | 14,781 | | Overdrafts | | | 137 | | | 6 | | | 2 | | | 145 | | | 608 | | | 753 | | Automobile loans | | | — | | | — | | | 11 | | | 11 | | | 17,522 | | | 17,533 | | Other consumer | | | 1 | | | — | | | — | | | 1 | | | 6,222 | | | 6,223 | | Total Traditional Banking | | | 1,128 | | | 330 | | | 6,234 | | | 7,692 | | | 3,468,696 | | | 3,476,388 | | Warehouse lines of credit | | | — | | | — | | | — | | | — | | | 750,682 | | | 750,682 | | Total Core Banking | | | 1,128 | | | 330 | | | 6,234 | | | 7,692 | | | 4,219,378 | | | 4,227,070 | | | | | | | | | | | | | | | | | | | | | | Republic Processing Group: | | | | | | | | | | | | | | | | | | | | Tax Refund Solutions: | | | | | | | | | | | | | | | | | | | | Easy Advances | | | — | | | — | | | — | | | — | | | — | | | — | | Other TRS loans | | | — | | | — | | | — | | | — | | | 1 | | | 1 | | Republic Credit Solutions | | | 6,828 | | | 2,182 | | | 691 | | | 9,701 | | | 107,010 | | | 116,711 | | Total Republic Processing Group | | | 6,828 | | | 2,182 | | | 691 | | | 9,701 | | | 107,011 | | | 116,712 | | | | | | | | | | | | | | | | | | | | | | Total | | $ | 7,956 | | $ | 2,512 | | $ | 6,925 | | $ | 17,393 | | $ | 4,326,389 | | $ | 4,343,782 | | Delinquency ratio*** | | | 0.18 | % | | 0.06 | % | | 0.16 | % | | 0.40 | % | | | | | | |
* All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. | | | | | | | | | | | | | | | | | | | | | | 30 - 59 | | 60 - 89 | | 90 or More | | | | | | | | | | | December 31, 2020 | Days | | Days | | Days | | Total | | Total | | | | | (dollars in thousands) | | Delinquent | | Delinquent | | Delinquent* | | Delinquent** | | Current | | Total | | | | | | | | | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | Owner occupied | | $ | 1,038 | | $ | 668 | | $ | 1,554 | | $ | 3,260 | | $ | 876,540 | | $ | 879,800 | | Nonowner occupied | | | — | | | — | | | — | | | — | | | 264,780 | | | 264,780 | | Commercial real estate | | | — | | | 348 | | | 5,109 | | | 5,457 | | | 1,343,628 | | | 1,349,085 | | Construction & land development | | | — | | | — | | | — | | | — | | | 98,674 | | | 98,674 | | Commercial & industrial | | | — | | | — | | | 12 | | | 12 | | | 325,584 | | | 325,596 | | Paycheck Protection Program | | | — | | | — | | | — | | | — | | | 392,319 | | | 392,319 | | Lease financing receivables | | | — | | | — | | | — | | | — | | | 10,130 | | | 10,130 | | Aircraft | | | — | | | — | | | — | | | — | | | 101,375 | | | 101,375 | | Home equity | | | 93 | | | 14 | | | 595 | | | 702 | | | 239,938 | | | 240,640 | | Consumer: | | | | | | | | | | | | | | | | | | | | Credit cards | | | 33 | | | 35 | | | 5 | | | 73 | | | 14,123 | | | 14,196 | | Overdrafts | | | 140 | | | 5 | | | 2 | | | 147 | | | 440 | | | 587 | | Automobile loans | | | 42 | | | — | | | 14 | | | 56 | | | 30,244 | | | 30,300 | | Other consumer | | | 6 | | | — | | | — | | | 6 | | | 8,161 | | | 8,167 | | Total Traditional Banking | | | 1,352 | | | 1,070 | | | 7,291 | | | 9,713 | | | 3,705,936 | | | 3,715,649 | | Warehouse lines of credit | | | — | | | — | | | — | | | — | | | 962,796 | | | 962,796 | | Total Core Banking | | | 1,352 | | | 1,070 | | | 7,291 | | | 9,713 | | | 4,668,732 | | | 4,678,445 | | | | | | | | | | | | | | | | | | | | | | Republic Processing Group: | | | | | | | | | | | | | | | | | | | | Tax Refund Solutions: | | | | | | | | | | | | | | | | | | | | Easy Advances | | | — | | | — | | | — | | | — | | | — | | | — | | Other TRS loans | | | — | | | — | | | — | | | — | | | — | | | — | | Republic Credit Solutions | | | 6,572 | | | 3,620 | | | 42 | | | 10,234 | | | 100,659 | | | 110,893 | | Total Republic Processing Group | | | 6,572 | | | 3,620 | | | 42 | | | 10,234 | | | 100,659 | | | 110,893 | | | | | | | | | | | | | | | | | | | | | | Total | | $ | 7,924 | | $ | 4,690 | | $ | 7,333 | | $ | 19,947 | | $ | 4,769,391 | | $ | 4,789,338 | | Delinquency ratio*** | | | 0.17 | % | | 0.10 | % | | 0.15 | % | | 0.42 | % | | | | | | |
* All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. Collateral-Dependent Loans The following table presents the amortized cost basis of collateral-dependent loans by class of loans: | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | | Secured | | Secured | | Secured | | Secured | | | by Real | | by Personal | | by Real | | by Personal | (dollars in thousands) | | Estate | | Property | | Estate | | Property | | | | | | | | | | | | | | Traditional Banking: | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | Owner occupied | | $ | 13,645 | | $ | — | | $ | 17,212 | | $ | — | Nonowner occupied | | | 99 | | | — | | | 81 | | | — | Commercial real estate | | | 8,985 | | | — | | | 10,205 | | | — | Construction & land development | | | — | | | — | | | — | | | — | Commercial & industrial | | | — | | | 47 | | | — | | | 12 | Paycheck Protection Program | | | — | | | — | | | — | | | — | Lease financing receivables | | | — | | | — | | | — | | | — | Aircraft | | | — | | | — | | | — | | | — | Home equity | | | 1,860 | | | — | | | 2,899 | | | — | Consumer | | | — | | | 369 | | | — | | | 237 | Total Traditional Banking | | $ | 24,589 | | $ | 416 | | $ | 30,397 | | $ | 249 |
Collateral-dependent loans are generally secured by real estate or personal property. If there is insufficient collateral value to secure the Company’s recorded investment in these loans, they are charged down to collateral value less estimated selling cost, when selling costs are applicable. Selling costs range from 10%-13%, with those percentages based on annual studies performed by the Company. Troubled Debt Restructurings A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of their debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Bank’s internal underwriting policy. The majority of the Bank’s commercial-related and construction TDRs involve a restructuring of financing terms, such as a reduction in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the debt. The substantial majority of the Bank’s residential real estate TDR concessions involve reducing the client’s loan payment through a rate reduction for a set period based on the borrower’s ability to service the modified loan payment. Retail loans may also be classified as TDRs due to legal modifications, such as bankruptcies. Nonaccrual loans modified as TDRs typically remain on nonaccrual status and continue to be reported as nonperforming loans for a minimum of six consecutive months. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. As of September 30, 2021 and December 31, 2020, $6 million and $7 million of TDRs were on nonaccrual status. Detail of TDRs differentiated by loan type and accrual status follows: | | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | Total | | | | Restructurings on | | Restructurings on | | Troubled Debt | | | | Nonaccrual Status | | Accrual Status | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2021 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | Residential real estate | | 64 | | $ | 3,736 | | 94 | | $ | 8,293 | | 158 | | $ | 12,029 | | Commercial real estate | | 2 | | | 2,580 | | 2 | | | 1,262 | | 4 | | | 3,842 | | Commercial & industrial | | — | | | — | | 1 | | | 1 | | 1 | | | 1 | | Consumer | | 1 | | | 12 | | 2,306 | | | 567 | | 2,307 | | | 579 | | Total troubled debt restructurings | | 67 | | $ | 6,328 | | 2,403 | | $ | 10,123 | | 2,470 | | $ | 16,451 | |
| | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | Total | | | | Restructurings on | | Restructurings on | | Troubled Debt | | | | Nonaccrual Status | | Accrual Status | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | December 31, 2020 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | Residential real estate | | 61 | | $ | 4,189 | | 123 | | $ | 11,041 | | 184 | | $ | 15,230 | | Commercial real estate | | 2 | | | 2,509 | | 5 | | | 2,395 | | 7 | | | 4,904 | | Construction & land development | | — | | | — | | 1 | | | 44 | | 1 | | | 44 | | Commercial & industrial | | — | | | — | | 1 | | | 1 | | 1 | | | 1 | | Consumer | | 1 | | | 14 | | 2,194 | | | 585 | | 2,195 | | | 599 | | Total troubled debt restructurings | | 64 | | $ | 6,712 | | 2,324 | | $ | 14,066 | | 2,388 | | $ | 20,778 | |
The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30-days-or-more as of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified terms as of September 30, 2021 and December 31, 2020 follows: | | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2021 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Rate reduction | | 88 | | $ | 7,964 | | 2 | | $ | 123 | | 90 | | $ | 8,087 | | Principal deferral | | 7 | | | 605 | | 1 | | | 160 | | 8 | | | 765 | | Legal modification | | 51 | | | 2,758 | | 9 | | | 419 | | 60 | | | 3,177 | | Total residential TDRs | | 146 | | | 11,327 | | 12 | | | 702 | | 158 | | | 12,029 | | | | | | | | | | | | | | | | | | | Commercial related and construction/land development loans: | | | | | | | | | | | | | | | | | Rate reduction | | 1 | | | 936 | | — | | | — | | 1 | | | 936 | | Principal deferral | | 3 | | | 444 | | 1 | | | 2,463 | | 4 | | | 2,907 | | Total commercial TDRs | | 4 | | | 1,380 | | 1 | | | 2,463 | | 5 | | | 3,843 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 2,304 | | | 560 | | — | | | — | | 2,304 | | | 560 | | Legal modification | | 3 | | | 19 | | — | | | — | | 3 | | | 19 | | Total consumer TDRs | | 2,307 | | | 579 | | — | | | — | | 2,307 | | | 579 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 2,457 | | $ | 13,286 | | 13 | | $ | 3,165 | | 2,470 | | $ | 16,451 | |
| | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | December 31, 2020 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Interest only payments | | 1 | | $ | 826 | | — | | $ | — | | 1 | | $ | 826 | | Rate reduction | | 101 | | | 9,526 | | 6 | | | 370 | | 107 | | | 9,896 | | Principal deferral | | 9 | | | 858 | | 2 | | | 166 | | 11 | | | 1,024 | | Legal modification | | 58 | | | 3,068 | | 7 | | | 416 | | 65 | | | 3,484 | | Total residential TDRs | | 169 | | | 14,278 | | 15 | | | 952 | | 184 | | | 15,230 | | | | | | | | | | | | | | | | | | | Commercial related and construction/land development loans: | | | | | | | | | | | | | | | | | Interest only payments | | 1 | | | 488 | | — | | | — | | 1 | | | 488 | | Rate reduction | | 2 | | | 1,046 | | 1 | | | 45 | | 3 | | | 1,091 | | Principal deferral | | 4 | | | 906 | | 1 | | | 2,464 | | 5 | | | 3,370 | | Total commercial TDRs | | 7 | | | 2,440 | | 2 | | | 2,509 | | 9 | | | 4,949 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 2,193 | | | 578 | | — | | | — | | 2,193 | | | 578 | | Legal modification | | 2 | | | 21 | | — | | | — | | 2 | | | 21 | | Total consumer TDRs | | 2,195 | | | 599 | | — | | | — | | 2,195 | | | 599 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 2,371 | | $ | 17,317 | | 17 | | $ | 3,461 | | 2,388 | | $ | 20,778 | |
As of September 30, 2021 and December 31, 2020, 81% and 83% of the Bank’s TDR balances were performing according to their modified terms. The Bank had provided $2 million and $1 million of specific ACLL allocations to clients whose loan terms have been modified in TDRs as of September 30, 2021 and December 31, 2020. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships as of September 30, 2021 or December 31, 2020. A summary of the categories of TDR loan modifications by respective performance as of September 30, 2021 and 2020 that were modified during the three months ended September 30, 2021 and 2020 follows: | | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2021 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Legal modification | | 3 | | $ | 142 | | 1 | | $ | 14 | | 4 | | $ | 156 | | Total residential TDRs | | 3 | | | 142 | | 1 | | | 14 | | 4 | | | 156 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 124 | | | 13 | | — | | | — | | 124 | | | 13 | | Total consumer TDRs | | 124 | | | 13 | | — | | | — | | 124 | | | 13 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 127 | | $ | 155 | | 1 | | $ | 14 | | 128 | | $ | 169 | |
| | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2020 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Principal deferral | | 2 | | $ | 54 | | 1 | | $ | 4 | | 3 | | $ | 58 | | Legal modification | | 4 | | | 152 | | 1 | | | 20 | | 5 | | | 172 | | Total residential TDRs | | 6 | | | 206 | | 2 | | | 24 | | 8 | | | 230 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 221 | | | 29 | | — | | | — | | 221 | | | 29 | | Legal modification | | 1 | | | 15 | | — | | | — | | 1 | | | 15 | | Total consumer TDRs | | 222 | | | 44 | | — | | | — | | 222 | | | 44 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 228 | | $ | 250 | | 2 | | $ | 24 | | 230 | | $ | 274 | |
The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. As of September 30, 2021 and 2020, 92% and 91% of the Bank’s TDR balances that occurred during the third quarters of 2021 and 2020 were performing according to their modified terms. The Bank provided approximately $6,000 and $29,000 in specific ACLL allocations to clients whose loan terms were modified in TDRs during the third quarters of 2021 and 2020. There was no significant change between the pre and post modification loan balances for the three months ending September 30, 2021 and 2020. A summary of the categories of TDR loan modifications by respective performance as of September 30, 2021 and 2020 that were modified during the nine months ended September 30, 2021 and 2020 follows: | | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2021 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Principal deferral | | — | | $ | — | | 1 | | $ | 160 | | 1 | | $ | 160 | | Legal modification | | 6 | | | 378 | | 5 | | | 288 | | 11 | | | 666 | | Total residential TDRs | | 6 | | | 378 | | 6 | | | 448 | | 12 | | | 826 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 556 | | | 72 | | — | | | — | | 556 | | | 72 | | Legal modification | | 1 | | | 3 | | — | | | — | | 1 | | | 3 | | Total consumer TDRs | | 557 | | | 75 | | — | | | — | | 557 | | | 75 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 563 | | $ | 453 | | 6 | | $ | 448 | | 569 | | $ | 901 | |
| | | | | | | | | | | | | | | | | | | Troubled Debt | | Troubled Debt | | | | | | | | | Restructurings | | Restructurings | | Total | | | | Performing to | | Not Performing to | | Troubled Debt | | | | Modified Terms | | Modified Terms | | Restructurings | | | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | September 30, 2020 (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | Residential real estate loans (including home equity loans): | | | | | | | | | | | | | | | | | Rate reduction | | 2 | | $ | 54 | | 1 | | $ | 4 | | 3 | | $ | 58 | | Legal modification | | 11 | | | 429 | | 2 | | | 128 | | 13 | | | 557 | | Total residential TDRs | | 13 | | | 483 | | 3 | | | 132 | | 16 | | | 615 | | | | | | | | | | | | | | | | | | | Commercial related and construction/land development loans: | | | | | | | | | | | | | | | | | Principal deferral | | 1 | | | 21 | | — | | | — | | 1 | | | 21 | | Total commercial TDRs | | 1 | | | 21 | | — | | | — | | 1 | | | 21 | | | | | | | | | | | | | | | | | | | Consumer loans: | | | | | | | | | | | | | | | | | Principal deferral | | 1,492 | | | 183 | | — | | | — | | 1,492 | | | 183 | | Legal modification | | 1 | | | 15 | | — | | | — | | 1 | | | 15 | | Total consumer TDRs | | 1,493 | | | 198 | | — | | | — | | 1,493 | | | 198 | | | | | | | | | | | | | | | | | | | Total troubled debt restructurings | | 1,507 | | $ | 702 | | 3 | | $ | 132 | | 1,510 | | $ | 834 | |
The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. As of September 30, 2021 and 2020, 50% and 84% of the Bank’s TDR balances that occurred during the first nine months of 2021 and 2020 were performing according to their modified terms. The Bank provided approximately $38,000 and $121,000 in specific ACLL allocations to clients whose loan terms were modified in TDRs during the first nine months of 2021 and 2020. There was no significant change between the pre and post modification loan balances for the nine months ending September 30, 2021 and 2020. The following table presents loans by class modified as troubled debt restructurings within the previous 12 months of September 30, 2021 and 2020 and for which there was a payment default during the three and/or nine months ended September 30, 2021 and 2020. | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | September 30, | | | | 2021 | | 2020 | | 2021 | | 2020 | | | | | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | Number of | | Recorded | | (dollars in thousands) | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | Loans | | Investment | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | Owner occupied | | 2 | | $ | 179 | | 3 | | $ | 163 | | 6 | | $ | 468 | | 5 | | $ | 269 | | Commercial real estate | | — | | | — | | 2 | | | 2,964 | | 1 | | | 116 | | 2 | | | 2,964 | | Home equity | | 1 | | | 14 | | 1 | | | 20 | | 1 | | | 14 | | 2 | | | 33 | | | | | | | | | | | | | | | | | | | | | | | | Total | | 3 | | $ | 193 | | 6 | | $ | 3,147 | | 8 | | $ | 598 | | 9 | | $ | 3,266 | |
COVID-19 Loan Accommodations The CARES Act provided several forms of economic relief designed to defray the impact of COVID-19. In April 2020, through its own independent relief efforts and CARES Act provisions, the Company began offering loan accommodations through deferrals and forbearances. These accommodations were generally under three-month terms for commercial clients, with residential and consumer accommodations in line with prevailing regulatory and legal parameters. Loans that received an accommodation were generally not considered troubled debt restructurings by the Company if such loans were not greater than 30 days past due as of December 31, 2019. As of September 30, 2021, $3 million, or less than 1% of the Company’s Traditional Bank portfolio remained under a COVID-19 hardship accommodation. Foreclosures The following table presents the carrying amount of foreclosed properties held as a result of the Bank obtaining physical possession of such properties: | | | | | | | | (in thousands) | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | Residential real estate | | $ | — | | $ | 496 | | Commercial real estate | | | 1,845 | | | 2,003 | | | | | | | | | | Total other real estate owned | | $ | 1,845 | | $ | 2,499 | |
The following table presents the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to requirements of the applicable jurisdiction: | | | | | | | | (in thousands) | | September 30, 2021 | | December 31, 2020 | | | | | | | | | | Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure | | $ | 475 | | $ | 981 | |
Easy Advances The Company’s TRS segment offered its EA product during the first two months of 2021 and 2020. During the first quarter of each year, the Company bases its estimated Provision for EAs on the current year’s EA delinquency information and the prior year’s tax refund payment patterns subsequent to the first quarter. Each year, all unpaid EAs are charged off by June 30th, and each quarter thereafter, any credits to the Provision for EAs matches the recovery of previously charged-off accounts. See additional detail regarding the Bank’s agreement to sell TRS under Footnote 17 “Discontinued Operations” in this section of the filing. Information regarding EAs follows: | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | September 30, | (dollars in thousands) | | 2021 | | 2020 | | 2021 | | 2020 | | | | | | | | | | | | | | | | Easy Advances originated | | $ | — | | $ | — | | $ | 250,045 | | | $ | 387,762 | | Net (credit) charge to the Provision for Easy Advances | | | (2,242) | | | (4,294) | | | 7,984 | | | | 15,239 | | Provision to total Easy Advances originated | | | NA | | | NA | | | 3.19 | % | | | 3.93 | % | Easy Advances net charge-offs (recoveries) | | $ | (2,242) | | $ | (4,294) | | $ | 7,984 | | | $ | 15,239 | | Easy Advances net charge-offs to total Easy Advances originated | | | NA | | | NA | | | 3.19 | % | | | 3.93 | % |
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