Allowance for Credit Losses | Note 4 — Allowance for Credit Losses The estimation of the ACL is based on a loss-rate methodology that measures lifetime losses on loan pools that have similar risk characteristics. Loans that do not have similar risk characteristics are evaluated on an individual basis. The segmentation of the loan portfolio into pools requires a balancing process between capturing similar risk characteristics and containing sufficient loss history to provide meaningful results. Our segmentation starts at the general loan category with further sub-segmentation based on collateral types that may be of meaningful size and/or may contain sufficient differences in risk characteristics based on management’s judgement that would warrant further segmentation. The general loan categories along with primary risk characteristics used in our calculation are as follows: Commercial and industrial loans. Construction and land development loans. Commercial real estate loans. This category includes loans secured by farmland, multifamily properties, owner occupied commercial properties, and non-owner occupied commercial properties. Owner occupied commercial properties include warehouses often along the border for import/export operations, office space where the borrower is the primary tenant, restaurants and other single-tenant retail. Non-owner occupied commercial properties include hotels, retail centers, office and professional buildings, and leased warehouses. These loans carry risk of repayment when market values deteriorate, the business experiences turnover in key management, the business has an inability to attract or keep occupancy levels stable, or when the market experiences an exit of a specific business type that is significant to the local economy, such as a manufacturing plant. 1-4 family mortgages. lines of credits, lots purchases, and home construction. Loan repayments may be affected by unemployment or underemployment and deteriorating market values of real estate. Consumer loans. The loan pools are further broken down using a risk-based segmentation based on internal classifications for commercial loans and past due status for consumer mortgage loans. Non-mortgage consumer loans are evaluated as one segment. On a weekly basis, commercial loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on our internal Watch List report. Additionally, our credit department reviews the majority of our loans for proper internal classification purposes regardless of whether they are past due and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, we will determine if a loan should be placed on an internal Watch List report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. Our internal Watch List report is segregated into the following categories: (i) Pass, (ii) Economic Monitoring, (iii) Special Review, (iv) Watch List—Pass, (v) Watch List—Substandard, and (vi) Watch List—Doubtful. The loans placed in the Special Review category and lower rated credits reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. Credits in those categories are reviewed and discussed on a regular basis, no less frequently than quarterly, with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Pass category and lower rated credits reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” Credits in this category are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Substandard category are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we may sustain some future loss if such weaknesses are not corrected. The loans placed in the Watch List—Doubtful category have shown defined weaknesses and it is likely, based on current information and events, that we will be unable to collect all principal and/or interest amounts contractually due. Watch List—Doubtful loans are placed on non-accrual when they are moved to that category. For the purposes of the ACL, in order to maintain segments with sufficient history for meaningful results, the credits in the Pass and Economic Monitoring categories are aggregated, the credits in the Special Review and Watch List—Pass credits are aggregated, and the credits in the Watch List—Substandard category remain in their own segment. For loans that are classified as Watch List—Doubtful, management evaluates these credits in accordance with ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the loan. The specific reserve allocated under ASC 310-10, is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) net realizable value of the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as Watch List—Doubtful under ASC 310-10 are measured using the fair value of collateral method. In rare cases, we may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. Within each collectively evaluated pool, the robustness of the lifetime historical loss-rate is evaluated and, if needed, is supplemented with peer loss rates through a model risk adjustment. Certain qualitative loss factors are then evaluated to incorporate management’s two-year reasonable and supportable forecast period followed by a reversion to the pool’s average lifetime loss-rate. Those qualitative loss factors are: (i) trends in portfolio volume and composition, (ii) volume and trends in classified loans, delinquencies, non-accruals and TDR’s, (iii) concentration risk, (iv) trends in underlying collateral value, (v) changes in policies, procedures, and strategies, and (vi) economic conditions. Qualitative factors also include potential losses stemming from operational risk factors arising from fraud, natural disasters, pandemics and geopolitical events. Should any of the factors considered by management in evaluating the adequacy of the ACL change, our estimate could also change, which could affect the level of future credit loss expense. We have elected to not measure an ACL for accrued interest receivable given our timely approach in identifying and writing off uncollectible accrued interest. An ACL for off-balance sheet exposure is derived from a projected usage rate of any unfunded commitment multiplied by the historical loss rate, plus model risk adjustment, if any, of the on-balance sheet loan pools. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. A summary of the transactions in the allowance for credit loan losses by loan class is as follows: Three Months Ended June 30, 2021 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2021 $ 22,163 $ 34,406 $ 32,203 $ 5,935 $ 3,917 $ 8,736 $ 279 $ 769 $ 108,408 Losses charged to allowance (1,655) — — — (117) (21) (55) — (1,848) Recoveries credited to allowance 498 — 7 — 24 37 11 — 577 Net (losses) recoveries charged to allowance (1,157) — 7 — (93) 16 (44) — (1,271) Credit loss expense 2,057 (803) 2,028 (1,729) 92 (556) 33 22 1,144 Balance at June 30, 2021 $ 23,063 $ 33,603 $ 34,238 $ 4,206 $ 3,916 $ 8,196 $ 268 $ 791 $ 108,281 Three Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2020 $ 19,067 $ 37,421 $ 15,004 $ 1,758 $ 2,782 $ 8,452 $ 323 $ 466 $ 85,273 Losses charged to allowance (2,142) (19) — — — (121) (60) — (2,342) Recoveries credited to allowance 599 1 12 — 1 17 4 — 634 Net (losses) recoveries charged to allowance (1,543) (18) 12 — 1 (104) (56) — (1,708) Credit loss expense 2,555 3,521 3,695 106 425 616 21 50 10,989 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 Six Months Ended June 30, 2021 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2020 $ 21,908 $ 37,612 $ 30,000 $ 5,051 $ 3,874 $ 9,570 $ 291 $ 753 $ 109,059 Losses charged to allowance (3,548) — (356) — (189) (21) (87) — (4,201) Recoveries credited to allowance 956 — 19 — 35 58 19 — 1,087 Net (losses) recoveries charged to allowance (2,592) — (337) — (154) 37 (68) — (3,114) Credit loss expense 3,747 (4,009) 4,575 (845) 196 (1,411) 45 38 2,336 Balance at June 30, 2021 $ 23,063 $ 33,603 $ 34,238 $ 4,206 $ 3,916 $ 8,196 $ 268 $ 791 $ 108,281 Six Months Ended June 30, 2020 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2019 $ 11,145 $ 18,152 $ 16,533 $ 1,786 $ 3,762 $ 7,535 $ 542 $ 823 $ 60,278 Adoption of ASU 2016-13 4,247 13,391 (4,292) (355) (1,580) (429) (225) (410) 10,347 Losses charged to allowance (4,961) (19) (55) — (36) (121) (130) — (5,322) Recoveries credited to allowance 1,270 1 21 — 2 120 12 — 1,426 Net (losses) recoveries charged to allowance (3,691) (18) (34) — (34) (1) (118) — (3,896) Credit loss expense 8,378 9,399 6,504 433 1,060 1,859 89 103 27,825 Balance at June 30, 2020 $ 20,079 $ 40,924 $ 18,711 $ 1,864 $ 3,208 $ 8,964 $ 288 $ 516 $ 94,554 The credit loss expense charged to operations increased throughout 2020 as a result of increases in the ACL due to deteriorating economic conditions as a result of the novel Coronavirus Disease 2019 (“COVID-19”) and its variant strains the impact of those conditions on certain segments of our loan portfolio. Economic conditions during the first six months of 2021 have stabilized and, in some segments, slightly improved. The pool specific qualitative loss factors management deemed appropriate for the ACL calculation at December 31, 2020 remained constant in the June 30, 2021 ACL calculation, which positively impacted the calculation and resulted in a decrease in the credit loss expense charged to operations for the three and six months ended June 30, 2021 compared to the same period of 2020. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of June 30, 2021 and December 31, 2020: June 30, 2021 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 567 $ 238 $ 1,706,857 $ 22,825 Commercial real estate: other construction & land development 769 70 1,617,724 33,533 Commercial real estate: farmland & commercial 404 — 2,597,973 34,238 Commercial real estate: multifamily 121 — 365,246 4,206 Residential: first lien 79 — 399,092 3,916 Residential: junior lien 35 — 516,947 8,196 Consumer — — 40,505 268 Foreign — — 141,218 791 Total $ 1,975 $ 308 $ 7,385,562 $ 107,973 December 31, 2020 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 1,189 $ 209 $ 1,784,747 $ 21,699 Commercial real estate: other construction & land development 17,496 70 1,829,261 37,542 Commercial real estate: farmland & commercial 439 — 2,288,869 30,000 Commercial real estate: multifamily 134 — 440,910 5,051 Residential: first lien 151 — 404,968 3,874 Residential: junior lien 38 — 593,987 9,570 Consumer — — 40,595 291 Foreign — — 138,970 753 Total $ 19,447 $ 279 $ 7,522,307 $ 108,780 The table below provides additional information on loans accounted for on a non-accrual basis by loan class at June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 (Dollars in Thousands) Domestic Commercial $ 567 $ 1,189 Commercial real estate: other construction & land development 769 17,496 Commercial real estate: farmland & commercial 404 439 Commercial real estate: multifamily 121 134 Residential: first lien 336 526 Residential: junior lien 35 38 Total non-accrual loans $ 2,232 $ 19,822 The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in Watch List—Doubtful loans. June 30, 2021 December 31, 2020 (Dollars in Thousands) Domestic Residential: first lien $ 2,234 $ 4,078 Residential: junior lien 265 521 Consumer 805 989 Foreign 18 233 Total troubled debt restructuring $ 3,322 $ 5,821 We are actively working with our customers affected by the current economic crisis arising from COVID-19. We have been offering and are prepared to continue to offer assistance in accordance with current regulatory guidance. That includes continuously reaching out to our customers and, in some cases, offering short-term payment deferral plans. As of August 1, 2021, we had approximately $364,296,000 in loans with some degree of payment deferrals in our system. In accordance with interagency regulatory guidance, these short-term deferrals are not considered troubled debt restructurings. The $364,296,000 is comprised primarily of loans related to industries that have been significantly impacted by the COVID-19 pandemic, including the hospitality sector, the oil and gas industry, and retail developments. With the passage of the Paycheck Protection Program (“PPP”), administered by the Small Business Association (“SBA”), we assisted our customers with applications for loans through the PPP. PPP loans earn interest at 1% and PPP loans made prior to June 5, 2020 have a two-year term, while those made after June 5, 2020 have a five-year term; however, PPP loans also include forgiveness provisions that we expect most customers will utilize. Customers began submitting applications for the forgiveness program in the third quarter of 2020. PPP loans were intended to support up to weeks of payroll and certain other costs to help those businesses remain viable and allow their employees to pay their bills. As of August 1, 2021, we had 4,015 PPP loans totaling approximately $272,831,000 outstanding. The PPP loans are fully guaranteed by the U.S. government through the SBA. The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due. While our management believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the ACL can be made only on a subjective basis. It is the judgment of our management that the ACL at June 30, 2021 was adequate to absorb probable losses from loans in the portfolio at that date. The following tables present information regarding the aging of past due loans by loan class at June 30, 2021 and December 31, 2020: June 30, 2021 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 2,171 $ 286 $ 1,646 $ 1,646 $ 4,103 $ 1,703,321 $ 1,707,424 Commercial real estate: other construction & land development 10,669 51 4,217 3,557 14,937 1,603,556 1,618,493 Commercial real estate: farmland & commercial 3,763 185 4 4 3,952 2,594,425 2,598,377 Commercial real estate: multifamily — — — — — 365,367 365,367 Residential: first lien 1,967 749 6,582 6,451 9,298 389,873 399,171 Residential: junior lien 1,141 184 780 745 2,105 514,877 516,982 Consumer 211 79 14 14 304 40,201 40,505 Foreign 479 — 466 466 945 140,273 141,218 Total past due loans $ 20,401 $ 1,534 $ 13,709 $ 12,883 $ 35,644 $ 7,351,893 $ 7,387,537 December 31, 2020 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,931 $ 1,109 $ 563 $ 318 $ 3,603 $ 1,782,333 $ 1,785,936 Commercial real estate: other construction & land development 1,059 854 16,587 — 18,500 1,828,257 1,846,757 Commercial real estate: farmland & commercial 2,435 219 186 186 2,840 2,286,468 2,289,308 Commercial real estate: multifamily 126 — — — 126 440,918 441,044 Residential: first lien 2,399 926 6,165 5,890 9,490 395,629 405,119 Residential: junior lien 561 247 1,197 1,197 2,005 592,020 594,025 Consumer 318 71 79 79 468 40,127 40,595 Foreign 478 180 568 568 1,226 137,744 138,970 Total past due loans $ 9,307 $ 3,606 $ 25,345 $ 8,238 $ 38,258 $ 7,503,496 $ 7,541,754 The decrease in Commercial Real Estate – Other Construction and Land Development Loans 90 days or greater past due at June 30, 2021 can be primarily attributed to a relationship secured by commercial property that was placed on non-accrual in the fourth quarter of 2020 and foreclosed upon in the first quarter of 2021. A summary of the loan portfolio by credit quality indicator by loan class and by year of origination at June 30, 2021 and December 31, 2020 is presented below: 2021 2020 2019 2018 2017 Prior Total (Dollars in Thousands) Balance at June 30, 2021 Domestic Commercial Pass $ 648,779 $ 585,815 $ 151,781 $ 115,209 $ 73,253 $ 15,095 $ 1,589,932 Special Review 1,528 74,697 — — — 1 76,226 Watch List - Pass — 36,371 — — — 12 36,383 Watch List - Substandard 3,123 287 845 61 — — 4,316 Watch List - Doubtful 320 144 — — 103 — 567 Total Commercial $ 653,750 $ 697,314 $ 152,626 $ 115,270 $ 73,356 $ 15,108 $ 1,707,424 Commercial real estate: other construction & land development Pass $ 367,161 $ 515,464 $ 522,601 $ 134,382 $ 15,864 $ 8,702 $ 1,564,174 Special Review 30,398 — — — — — 30,398 Watch List - Pass — 23,101 — 51 — — 23,152 Watch List - Doubtful — 769 — — — — 769 Total Commercial real estate: other construction & land development $ 397,559 $ 539,334 $ 522,601 $ 134,433 $ 15,864 $ 8,702 $ 1,618,493 Commercial real estate: farmland & commercial Pass $ 464,047 $ 752,584 $ 340,132 $ 445,558 $ 203,489 $ 258,935 $ 2,464,745 Special Review 2,154 1,335 921 4,170 64 912 9,556 Watch List - Pass 17,228 44,226 — 277 97 — 61,828 Watch List - Substandard — 54,661 4,497 — 2,220 466 61,844 Watch List - Doubtful — 219 185 — — — 404 Total Commercial real estate: farmland & commercial $ 483,429 $ 853,025 $ 345,735 $ 450,005 $ 205,870 $ 260,313 $ 2,598,377 Commercial real estate: multifamily Pass $ 25,734 $ 81,249 $ 102,969 $ 77,220 $ 69,377 $ 8,697 $ 365,246 Watch List - Doubtful — 121 — — — — 121 Total Commercial real estate: multifamily $ 25,734 $ 81,370 $ 102,969 $ 77,220 $ 69,377 $ 8,697 $ 365,367 Residential: first lien Pass $ 67,108 $ 68,283 $ 70,479 $ 56,313 $ 34,787 $ 102,064 $ 399,034 Watch List - Substandard 58 — — — — — 58 Watch List - Doubtful — 79 — — — — 79 Total Residential: first lien $ 67,166 $ 68,362 $ 70,479 $ 56,313 $ 34,787 $ 102,064 $ 399,171 Residential: junior lien Pass $ 67,010 $ 165,589 $ 81,771 $ 42,997 $ 53,410 $ 106,170 $ 516,947 Watch List- Doubtful — 35 — — — — 35 Total Residential: junior lien $ 67,010 $ 165,624 $ 81,771 $ 42,997 $ 53,410 $ 106,170 $ 516,982 Residential: junior lien Consumer Pass $ 18,941 $ 16,290 $ 3,172 $ 428 $ 85 $ 1,589 $ 40,505 Total Consumer $ 18,941 $ 16,290 $ 3,172 $ 428 $ 85 $ 1,589 $ 40,505 Foreign Pass $ 48,504 $ 60,159 $ 11,376 $ 10,049 $ 5,524 $ 5,606 $ 141,218 Total Foreign $ 48,504 $ 60,159 $ 11,376 $ 10,049 $ 5,524 $ 5,606 $ 141,218 Total Loans $ 1,762,093 $ 2,481,478 $ 1,290,729 $ 886,715 $ 458,273 $ 508,249 $ 7,387,537 2020 2019 2018 2017 2016 Prior Total (Dollars in Thousands) Balance at December 31, 2020 Domestic Commercial Pass $ 1,168,671 $ 240,869 $ 145,670 $ 85,434 $ 13,901 $ 10,000 $ 1,664,545 Special Review 75,638 — — — — — 75,638 Watch List - Pass 39,886 11 — 3 — 17 39,917 Watch List - Substandard 3,360 683 289 — 315 — 4,647 Watch List - Doubtful 777 161 92 159 — — 1,189 Total Commercial $ 1,288,332 $ 241,724 $ 146,051 $ 85,596 $ 14,216 $ 10,017 $ 1,785,936 Commercial Commercial real estate: other construction & land development Pass $ 773,165 $ 576,707 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,762,231 Special Review 20,828 21,650 — — — — 42,478 Watch List - Pass 23,101 1,451 — — — — 24,552 Watch List - Doubtful 16,702 794 — — — — 17,496 Total Commercial real estate: other construction & land development $ 833,796 $ 600,602 $ 320,308 $ 78,174 $ 10,534 $ 3,343 $ 1,846,757 Commercial real estate: farmland & commercial Pass $ 884,070 $ 373,993 $ 386,268 $ 189,639 $ 202,500 $ 116,729 $ 2,153,199 Special Review 3,041 — 4,758 177 3,218 — 11,194 Watch List - Pass 61,637 942 277 80 — — 62,936 Watch List - Substandard 53,809 4,986 — 2,269 475 1 61,540 Watch List - Doubtful — 202 — — — 237 439 Total Commercial real estate: farmland & commercial $ 1,002,557 $ 380,123 $ 391,303 $ 192,165 $ 206,193 $ 116,967 $ 2,289,308 Commercial real estate: multifamily Pass $ 74,577 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 440,910 Watch List - Doubtful 134 — — — — — 134 Total Commercial real estate: multifamily $ 74,711 $ 208,356 $ 82,818 $ 64,110 $ 6,801 $ 4,248 $ 441,044 Residential: first lien Pass $ 81,004 $ 62,165 $ 72,299 $ 54,593 $ 29,250 $ 105,463 $ 404,774 Watch List - Pass — 14 131 — — — 145 Watch List - Substandard — — — — 49 — 49 Watch List - Doubtful 86 — — — — 65 151 Total Residential: first lien $ 81,090 $ 62,179 $ 72,430 $ 54,593 $ 29,299 $ 105,528 $ 405,119 Residential: junior lien Pass $ 196,308 $ 108,276 $ 61,636 $ 75,056 $ 56,705 $ 94,454 $ 592,435 Special Review 740 — — 812 — — 1,552 Watch List- Doubtful — — 38 — — — 38 Total Residential: junior lien $ 197,048 $ 108,276 $ 61,674 $ 75,868 $ 56,705 $ 94,454 $ 594,025 Consumer Pass $ 30,910 $ 7,159 $ 875 $ 225 $ 55 $ 1,371 $ 40,595 Total Consumer $ 30,910 $ 7,159 $ 875 $ 225 $ 55 $ 1,371 $ 40,595 Foreign Pass $ 93,236 $ 19,092 $ 11,572 $ 6,192 $ 3,533 $ 5,345 $ 138,970 Total Foreign $ 93,236 $ 19,092 $ 11,572 $ 6,192 $ 3,533 $ 5,345 $ 138,970 Total Loans $ 3,601,680 $ 1,627,511 $ 1,087,031 $ 556,923 $ 327,336 $ 341,273 $ 7,541,754 The decrease in Special Review Commercial Real Estate – Other Construction and Land development loans at June 30, 2021 compared to December 31, 2020 can be primarily attributed to the payoff of a loan secured by commercial property in the first quarter of 2021. The decrease in Watch List-Doubtful loans in the same category for the same period can be primarily attributed to a relationship secured by commercial property that was placed on non-accrual status in the fourth quarter of 2020 and subsequently foreclosed upon in the first quarter of 2021. |