LOANS AND ALLOWANCE FOR LOAN LOSSES | 3. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES See Note 1 āSummary of Significant Accounting Policiesā in this Quarterly Report for a summary of the Companyās impact of COVID-19. The information included below reflects the impact of the CARES Act, as amended by the CAA, and the Joint Guidance. ā The Companyās loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2021 and December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Construction and Land Development ā $ 884,303 ā $ 925,798 Commercial Real Estate - Owner Occupied ā 2,083,155 ā 2,128,909 Commercial Real Estate - Non-Owner Occupied ā 3,671,471 ā 3,657,562 Multifamily Real Estate ā 842,906 ā 814,745 Commercial & Industrial (1) ā 3,599,884 ā 3,263,460 Residential 1-4 Family - Commercial ā 658,051 ā 671,949 Residential 1-4 Family - Consumer ā 816,916 ā 822,866 Residential 1-4 Family - Revolving ā 563,786 ā 596,996 Auto ā 406,349 ā 401,324 Consumer ā 215,711 ā 247,730 Other Commercial (2) ā 529,748 ā 489,975 Total loans held for investment, net of deferred fees and costs (3) ā ā 14,272,280 ā ā 14,021,314 Allowance for loan and lease losses ā ā (142,911) ā ā (160,540) Total loans held for investment, net ā $ 14,129,369 ā $ 13,860,774 (1) Commercial & industrial loans include approximately $1.5 billion and $1.2 b illion in loans from the PPP at March 31, 2021 and December 31, 2020, respectively. . (2) Other commercial loans include approximately $20.2 million and $11.3 million in loans from the PPP at March 31, 2021 and December 31, 2020, respectively. ā (3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $83.8 million and $69.7 million as of March 31, 2021 and December 31, 2020, respectively. The following table shows the aging of the Companyās loan portfolio, by class, at March 31, 2021 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Greater than ā ā ā ā ā ā ā ā ā ā 30-59 Days ā 60-89 Days ā 90 Days and ā ā ā ā ā ā ā ā ā Current ā Past Due ā Past Due ā still Accruing ā Nonaccrual ā Total Loans ā Construction and Land Development ā $ 880,139 ā $ 865 ā $ 473 ā $ 189 ā $ 2,637 ā $ 884,303 ā Commercial Real Estate - Owner Occupied ā 2,069,019 ā 3,426 ā 514 ā 3,180 ā 7,016 ā 2,083,155 ā Commercial Real Estate - Non-Owner Occupied ā 3,666,228 ā 1,055 ā 1,413 ā 817 ā 1,958 ā 3,671,471 ā Multifamily Real Estate ā 842,638 ā 187 ā 81 ā ā ā ā ā 842,906 ā Commercial & Industrial ā 3,593,508 ā 3,086 ā 613 ā 654 ā 2,023 ā 3,599,884 ā Residential 1-4 Family - Commercial ā 645,684 ā 1,803 ā 798 ā 576 ā 9,190 ā 658,051 ā Residential 1-4 Family - Consumer ā 791,466 ā 6,831 ā 808 ā 3,041 ā 14,770 ā 816,916 ā Residential 1-4 Family - Revolving ā 557,335 ā 1,397 ā 284 ā 917 ā 3,853 ā 563,786 ā Auto ā 404,692 ā 1,035 ā 165 ā 154 ā 303 ā 406,349 ā Consumer ā 214,438 ā 595 ā 314 ā 248 ā 116 ā 215,711 ā Other Commercial ā ā 529,253 ā ā 407 ā ā 88 ā ā ā ā ā ā ā ā 529,748 ā Total loans held for investment ā $ 14,194,400 ā $ 20,687 ā $ 5,551 ā $ 9,776 ā $ 41,866 ā $ 14,272,280 ā % of total loans ā ā 99.45 % ā 0.15 % ā 0.04 % ā 0.07 % ā 0.29 % ā 100.00 % ā The following table shows the aging of the Companyās loan portfolio, by class, at December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Greater than ā ā ā ā ā ā ā ā ā 30-59 Days ā 60-89 Days ā 90 Days and ā ā ā ā ā ā ā ā Current ā Past Due ā Past Due ā still Accruing ā Nonaccrual ā Total Loans Construction and Land Development ā $ 920,276 ā $ 1,903 ā $ 547 ā $ ā ā $ 3,072 ā $ 925,798 ā Commercial Real Estate - Owner Occupied ā 2,114,804 ā 1,870 ā 1,380 ā 3,727 ā 7,128 ā 2,128,909 ā Commercial Real Estate - Non-Owner Occupied ā 3,651,232 ā 2,144 ā 1,721 ā 148 ā 2,317 ā 3,657,562 ā Multifamily Real Estate ā 814,095 ā 617 ā ā ā ā ā 33 ā 814,745 ā Commercial & Industrial ā 3,257,201 ā 1,848 ā 1,190 ā 1,114 ā 2,107 ā 3,263,460 ā Residential 1-4 Family - Commercial ā 657,351 ā 2,227 ā 818 ā 1,560 ā 9,993 ā 671,949 ā Residential 1-4 Family - Consumer ā 792,852 ā 10,182 ā 1,533 ā 5,699 ā 12,600 ā 822,866 ā Residential 1-4 Family - Revolving ā 587,522 ā 2,975 ā 1,044 ā 826 ā 4,629 ā 596,996 ā Auto ā 398,206 ā 2,076 ā 376 ā 166 ā 500 ā 401,324 ā Consumer ā 245,551 ā 1,166 ā 550 ā 394 ā 69 ā 247,730 ā Other Commercial ā ā 489,959 ā ā 16 ā ā ā ā ā ā ā ā ā ā ā 489,975 ā Total loans held for investment ā $ 13,929,049 ā $ 27,024 ā $ 9,159 ā $ 13,634 ā $ 42,448 ā $ 14,021,314 ā % of total loans ā ā 99.34 % ā 0.19 % ā 0.07 % ā 0.10 % ā 0.30 % ā 100.00 % ā ā The following table shows the Companyās amortized cost basis of loans on nonaccrual status as of January 1, 2021, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nonaccrual ā ā ā ā ā ā ā ā January 1, 2021 ā March 31, 2021 ā Nonaccrual With No ALLL ā 90 Days and still Accruing Construction and Land Development ā $ 3,072 ā $ 2,637 ā $ 1,985 ā $ 189 Commercial Real Estate - Owner Occupied ā ā 7,128 ā ā 7,016 ā ā 1,994 ā ā 3,180 Commercial Real Estate - Non-Owner Occupied ā ā 2,317 ā ā 1,958 ā ā ā ā ā 817 Multifamily Real Estate ā ā 33 ā ā ā ā ā ā ā ā ā Commercial & Industrial ā ā 2,107 ā ā 2,023 ā ā 1 ā ā 654 Residential 1-4 Family - Commercial ā ā 9,993 ā ā 9,190 ā ā 6,388 ā ā 576 Residential 1-4 Family - Consumer ā ā 12,600 ā ā 14,770 ā ā 2,364 ā ā 3,041 Residential 1-4 Family - Revolving ā ā 4,629 ā ā 3,853 ā ā 60 ā ā 917 Auto ā ā 500 ā ā 303 ā ā ā ā ā 154 Consumer ā ā 69 ā ā 116 ā ā ā ā ā 248 Total loans held for investment ā $ 42,448 ā $ 41,866 ā $ 12,792 ā $ 9,776 ā ā The following table shows the Companyās amortized cost basis of loans on nonaccrual status as of January 1, 2020, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Nonaccrual ā ā ā ā ā ā ā ā January 1, 2020 ā December 31, 2020 ā Nonaccrual With No ALLL ā 90 Days and still Accruing Construction and Land Development ā $ 4,060 ā $ 3,072 ā $ 1,985 ā $ ā Commercial Real Estate - Owner Occupied ā ā 13,889 ā ā 7,128 ā ā 1,994 ā ā 3,727 Commercial Real Estate - Non-Owner Occupied ā ā 1,368 ā ā 2,317 ā ā ā ā ā 148 Multifamily Real Estate ā ā ā ā ā 33 ā ā ā ā ā ā Commercial & Industrial ā ā 3,037 ā ā 2,107 ā ā 1 ā ā 1,114 Residential 1-4 Family - Commercial ā ā 6,492 ā ā 9,993 ā ā 6,388 ā ā 1,560 Residential 1-4 Family - Consumer ā ā 13,117 ā ā 12,600 ā ā 1,069 ā ā 5,699 Residential 1-4 Family - Revolving ā ā 2,490 ā ā 4,629 ā ā 60 ā ā 826 Auto ā ā 565 ā ā 500 ā ā ā ā ā 166 Consumer ā ā 88 ā ā 69 ā ā ā ā ā 394 Other Commercial ā ā 98 ā ā ā ā ā ā ā ā ā Total loans held for investment ā $ 45,204 ā $ 42,448 ā $ 11,497 ā $ 13,634 ā There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2021 and 2020. See Note 1 āSummary of Significant Accounting Policiesā in the Companyās 2020 Form 10-K for additional information on the Companyās policies for nonaccrual loans. ā ā Troubled Debt Restructurings ā The CARES Act, as amended by the CAA, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of January 1, 2022 or 60 days after the end of the COVID-19 emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. As of March 31, 2021 and December 31, 2020, the Company had approximately $ 68.1 million and $146.1 million, respectively, in loans still under their modified terms. The Companyās modification program primarily included payment deferrals and interest only modifications. In addition to the above mentioned modifications, as of March 31, 2021 , the Company has TDRs totaling $ 19.7 million with an estimated $ 1.2 million of allowance for those loans for the current period. As of December 31, 2020, the Company had TDRs totaling $20.6 million with an estimated $1.6 million of allowance for those loans. ā A modification of a loanās terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrowerās financial difficulties. All loans that are considered to be TDRs are evaluated for credit losses in accordance with the Companyās ALLL methodology. For the three months ended March 31, 2021 and March 31, 2020, the recorded investment in TDRs prior to modifications was not materially impacted by the modifications. ā T he following table provides a summary, by class, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2021 and December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2021 ā December 31, 2020 ā No. of Recorded Outstanding No. of Recorded Outstanding ā ā Loans ā Investment ā Commitment ā Loans ā Investment ā Commitment Performing ā ā ā ā Construction and Land Development 4 ā $ 212 ā $ ā 4 ā $ 215 ā $ ā Commercial Real Estate - Owner Occupied 5 ā 1,827 ā ā 6 ā 2,033 ā 176 Commercial Real Estate - Non-Owner Occupied 1 ā 1,089 ā ā 1 ā 1,089 ā ā Commercial & Industrial 2 ā 446 ā ā 4 ā 727 ā ā Residential 1-4 Family - Commercial 2 ā 109 ā ā 3 ā 245 ā ā Residential 1-4 Family - Consumer 84 ā 9,271 ā ā 77 ā 8,943 ā ā Residential 1-4 Family - Revolving 3 ā 274 ā 3 3 ā 277 ā ā Consumer 4 ā 35 ā ā 3 ā 22 ā ā Other Commercial ā 1 ā ā 407 ā ā ā ā 1 ā ā 410 ā ā ā Total performing 106 ā $ 13,670 ā $ 3 102 ā $ 13,961 ā $ 176 Nonperforming ā ā ā ā Commercial Real Estate - Owner Occupied 1 ā $ 19 ā $ ā 1 ā $ 20 ā $ ā Commercial Real Estate - Non-Owner Occupied ā 1 ā ā 128 ā ā ā ā 1 ā ā 134 ā ā ā Commercial & Industrial 4 ā 427 ā ā 3 ā 237 ā ā Residential 1-4 Family - Commercial 3 ā 404 ā ā 4 ā 1,296 ā ā Residential 1-4 Family - Consumer 26 ā 4,977 ā ā 23 ā 4,865 ā ā Residential 1-4 Family - Revolving 3 ā 103 ā ā 3 ā 103 ā ā Total nonperforming 38 ā $ 6,058 ā $ ā 35 ā $ 6,655 ā $ ā Total performing and nonperforming 144 ā $ 19,728 ā $ 3 137 ā $ 20,616 ā $ 176 ā The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three months ended March 31, 2021 , the Company did not have any material loans that went into default that had been restructured in the twelve-month period prior to the time of default. ā The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2021 and 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā Three Months Ended March 31, 2020 ā ā Recorded ā Recorded ā ā No. of ā Investment at ā No. of ā Investment at ā ā Loans ā Period End ā Loans ā Period End Modified to interest only, at a market rate ā ā Total interest only at market rate of interest ā ā $ ā ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā Term modification, at a market rate ā ā Commercial & Industrial ā ā $ ā 1 ā $ 517 Residential 1-4 Family - Consumer 2 ā 105 ā ā ā Total loan term extended at a market rate 2 ā $ 105 1 ā $ 517 ā ā ā ā ā ā ā ā ā ā ā Term modification, below market rate ā ā Construction and Land Development ā ā ā $ ā ā 1 ā $ 35 Residential 1-4 Family - Consumer 9 ā 472 10 ā 1,763 Consumer 1 ā 16 ā ā ā Total loan term extended at a below market rate 10 ā $ 488 11 ā $ 1,798 ā ā ā ā ā ā ā ā ā ā ā Interest rate modification, below market rate ā ā Residential 1-4 Family - Commercial 1 ā $ 45 ā ā $ ā Total interest only at below market rate of interest 1 ā $ 45 ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā Total 13 ā $ 638 12 ā $ 2,315 ā Allowance for Loan and Lease Losses ā ALLL on the loan portfolio is a material estimate for the Company. The Company estimates its ALLL on its loan portfolio on a quarterly basis. The Company models the ALLL using two primary segments, Commercial and Consumer. Within each segment, loan classes are further identified based on similar risk characteristics. The Company has identified the following classes within each segment: ā Commercial : Construction and Land Development, Commercial Real Estate ā Owner Occupied, Commercial Real Estate ā Non-Owner Occupied, Multifamily Real Estate, Commercial & Industrial, Residential 1-4 Family ā Commercial, and Other Commercial ā Consumer : Residentil 1-4 Family ā Consumer, Residential 1-4 Family ā Revolving, Auto, and Consumer The following tables show the ALLL activity by segment for the three months ended March 31, 2021 and 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā ā Commercial ā Consumer ā Total Balance at beginning of period ā $ 117,403 ā $ 43,137 ā $ 160,540 Loans charged-off ā (1,974) ā (1,667) ā (3,641) Recoveries credited to allowance ā 1,606 ā 863 ā 2,469 Provision charged to operations ā (10,603) ā (5,854) ā (16,457) Balance at end of period ā $ 106,432 ā $ 36,479 ā $ 142,911 ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2020 ā ā Commercial ā Consumer ā Total Balance at beginning of period ā $ 30,941 ā $ 11,353 ā $ 42,294 Impact of ASC 326 adoption on non-PCD loans ā 4,432 ā 40,666 ā 45,098 Impact of ASC 326 adoption on PCD loans ā 1,752 ā 634 ā 2,386 Impact of adopting ASC 326 ā 6,184 ā 41,300 ā 47,484 Loans charged-off ā (2,968) ā (4,183) ā (7,151) Recoveries credited to allowance ā 1,154 ā 1,006 ā 2,160 Provision charged to operations ā 42,532 ā 13,724 ā 56,256 Balance at end of period ā $ 77,843 ā $ 63,200 ā $ 141,043 ā Credit Quality Indicators ā Credit quality indicators are utilized to help estimate the collectability of each loan class within the Commercial and Consumer segments. For classes of loans within the Commercial segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is risk rating categories of Pass, Watch, Special Mention, Substandard, and Doubtful. For classes of loans within the Consumer segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is delinquency bands of Current, 30-59, 60-89, 90+, and Nonaccrual. While other credit quality indicators are evaluated and analyzed as part of the Companyās credit risk management activities, these indicators are primarily used in estimating the ALLL. The Company evaluates the credit risk of its loan portfolio on at least a quarterly basis. ā Commercial Loans ā The Company uses a risk rating system as the primary credit quality indicator for classes of loans within the Commercial segment. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for credit loss. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows: ā Pass is determined by the following criteria: ā Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; ā Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; ā Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; ā Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; ā Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan. ā Watch is determined by the following criteria: ā Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrowerās ability to repay; ā Special Mention is determined by the following criteria: ā Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Companyās credit position. ā Substandard is determined by the following criteria: ā Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected. ā Doubtful is determined by the following criteria: ā Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; ā Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of March 31, 2021 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2021 ā ā ā Term Loans Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā 2021 ā 2020 ā 2019 ā 2018 ā 2017 ā Prior ā Revolving Loans ā Total Construction and Land Development ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 61,584 ā $ 340,066 ā $ 215,340 ā $ 77,960 ā $ 22,165 ā $ 65,264 ā $ 26,117 ā $ 808,496 Watch ā ā 13 ā ā 2,486 ā ā 23,950 ā ā 1,834 ā ā 571 ā ā 5,521 ā ā 412 ā ā 34,787 Special Mention ā ā ā ā ā ā ā ā 5,635 ā ā 135 ā ā ā ā ā 1,062 ā ā ā ā ā 6,832 Substandard ā ā ā ā ā ā ā ā ā ā ā 28,395 ā ā 8 ā ā 5,785 ā ā ā ā ā 34,188 Total Construction and Land Development ā $ 61,597 ā $ 342,552 ā $ 244,925 ā $ 108,324 ā $ 22,744 ā $ 77,632 ā $ 26,529 ā $ 884,303 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial Real Estate - Owner Occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 34,001 ā $ 273,173 ā $ 346,684 ā $ 285,739 ā $ 216,109 ā $ 664,203 ā $ 17,023 ā $ 1,836,932 Watch ā ā ā ā ā 15,073 ā ā 16,771 ā ā 23,606 ā ā 15,970 ā ā 66,770 ā ā 932 ā ā 139,122 Special Mention ā ā ā ā ā 974 ā ā 27,269 ā ā 5,393 ā ā 4,909 ā ā 36,050 ā ā 1,841 ā ā 76,436 Substandard ā ā ā ā ā ā ā ā 4,950 ā ā 5,060 ā ā 158 ā ā 20,497 ā ā ā ā ā 30,665 Total Commercial Real Estate - Owner Occupied ā $ 34,001 ā $ 289,220 ā $ 395,674 ā $ 319,798 ā $ 237,146 ā $ 787,520 ā $ 19,796 ā $ 2,083,155 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial Real Estate - Non-Owner Occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 113,841 ā $ 381,511 ā $ 429,913 ā $ 401,006 ā $ 395,726 ā $ 1,183,233 ā $ 35,333 ā $ 2,940,563 Watch ā ā ā ā ā 17,458 ā ā 160,682 ā ā 81,003 ā ā 40,014 ā ā 231,751 ā ā 15,291 ā ā 546,199 Special Mention ā ā ā ā ā 698 ā ā 23,529 ā ā 30,489 ā ā 31,998 ā ā 65,303 ā ā 723 ā ā 152,740 Substandard ā ā ā ā ā 10,991 ā ā ā ā ā 13,263 ā ā ā ā ā 7,715 ā ā ā ā ā 31,969 Total Commercial Real Estate - Non-Owner Occupied ā $ 113,841 ā $ 410,658 ā $ 614,124 ā $ 525,761 ā $ 467,738 ā $ 1,488,002 ā $ 51,347 ā $ 3,671,471 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial & Industrial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 587,238 ā $ 1,519,813 ā $ 334,830 ā $ 199,114 ā $ 59,668 ā $ 196,093 ā $ 564,292 ā $ 3,461,048 Watch ā ā 23 ā ā 13,018 ā ā 25,346 ā ā 14,560 ā ā 2,559 ā ā 6,048 ā ā 17,433 ā ā 78,987 Special Mention ā ā 15,235 ā ā 1,260 ā ā 6,396 ā ā 3,669 ā ā 4,630 ā ā 1,731 ā ā 11,265 ā ā 44,186 Substandard ā ā ā ā ā 527 ā ā 4,942 ā ā 1,278 ā ā 303 ā ā 2,865 ā ā 5,748 ā ā 15,663 Total Commercial & Industrial ā $ 602,496 ā $ 1,534,618 ā $ 371,514 ā $ 218,621 ā $ 67,160 ā $ 206,737 ā $ 598,738 ā $ 3,599,884 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Multifamily Real Estate ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 8,219 ā $ 143,295 ā $ 114,224 ā $ 166,220 ā $ 102,337 ā $ 269,062 ā $ 2,927 ā $ 806,284 Watch ā ā ā ā ā ā ā ā 4,398 ā ā 471 ā ā ā ā ā 24,243 ā ā ā ā ā 29,112 Special Mention ā ā ā ā ā 2,280 ā ā 640 ā ā 4,383 ā ā ā ā ā 94 ā ā ā ā ā 7,397 Substandard ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 113 ā ā ā ā ā 113 Total Multifamily Real Estate ā $ 8,219 ā $ 145,575 ā $ 119,262 ā $ 171,074 ā $ 102,337 ā $ 293,512 ā $ 2,927 ā $ 842,906 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Residential 1-4 Family - Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 20,945 ā $ 106,176 ā $ 82,343 ā $ 62,283 ā $ 74,998 ā $ 254,905 ā $ 2,294 ā $ 603,944 Watch ā ā ā ā ā 659 ā ā 3,898 ā ā 8,013 ā ā 3,916 ā ā 13,632 ā ā 193 ā ā 30,311 Special Mention ā ā 165 ā ā ā ā ā 2,744 ā ā 456 ā ā 444 ā ā 6,007 ā ā ā ā ā 9,816 Substandard ā ā ā ā ā ā ā ā 773 ā ā 5,433 ā ā 1,444 ā ā 5,842 ā ā 488 ā ā 13,980 Total Residential 1-4 Family - Commercial ā $ 21,110 ā $ 106,835 ā $ 89,758 ā $ 76,185 ā $ 80,802 ā $ 280,386 ā $ 2,975 ā $ 658,051 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 50,013 ā $ 216,949 ā $ 111,954 ā $ 8,870 ā $ 30,297 ā $ 57,341 ā $ 21,903 ā $ 497,327 Watch ā ā ā ā ā ā ā ā ā ā ā 605 ā ā 1,286 ā ā 3,835 ā ā ā ā ā 5,726 Special Mention ā ā ā ā ā ā ā ā ā ā ā ā ā ā 5 ā ā 612 ā ā 26,078 ā ā 26,695 Total Other Commercial ā $ 50,013 ā $ 216,949 ā $ 111,954 ā $ 9,475 ā $ 31,588 ā $ 61,788 ā $ 47,981 ā $ 529,748 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 875,841 ā $ 2,980,983 ā $ 1,635,288 ā $ 1,201,192 ā $ 901,300 ā $ 2,690,101 ā $ 669,889 ā $ 10,954,594 Watch ā ā 36 ā ā 48,694 ā ā 235,045 ā ā 130,092 ā ā 64,316 ā ā 351,800 ā ā 34,261 ā ā 864,244 Special Mention ā ā 15,400 ā ā 5,212 ā ā 66,213 ā ā 44,525 ā ā 41,986 ā ā 110,859 ā ā 39,907 ā ā 324,102 Substandard ā ā ā ā ā 11,518 ā ā 10,665 ā ā 53,429 ā ā 1,913 ā ā 42,817 ā ā 6,236 ā ā 126,578 Total Commercial ā $ 891,277 ā $ 3,046,407 ā $ 1,947,211 ā $ 1,429,238 ā $ 1,009,515 ā $ 3,195,577 ā $ 750,293 ā $ 12,269,518 ā The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā Term Loans Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020 ā 2019 ā 2018 ā 2017 ā 2016 ā Prior ā Revolving Loans ā Total Construction and Land Development ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 316,585 ā $ 277,142 ā $ 116,800 ā $ 24,770 ā $ 42,970 ā $ 54,023 ā $ 23,324 ā $ 855,614 Watch ā ā 1,873 ā ā 18,181 ā ā 8,434 ā ā 344 ā ā 2,355 ā ā 6,372 ā ā 412 ā ā 37,971 Special Mention ā ā ā ā ā 5,532 ā ā 135 ā ā ā ā ā ā ā ā 2,655 ā ā ā ā ā 8,322 Substandard ā ā ā ā ā ā ā ā 17,780 ā ā 64 ā ā 2,037 ā ā 4,010 ā ā ā ā ā 23,891 Total Construction and Land Development ā $ 318,458 ā $ 300,855 ā $ 143,149 ā $ 25,178 ā $ 47,362 ā $ 67,060 ā $ 23,736 ā $ 925,798 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial Real Estate - Owner Occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 286,522 ā $ 375,541 ā $ 300,583 ā $ 233,359 ā $ 128,261 ā $ 570,361 ā $ 18,838 ā $ 1,913,465 Watch ā ā 1,942 ā ā 14,611 ā ā 22,224 ā ā 15,623 ā ā 24,979 ā ā 41,361 ā ā 1,648 ā ā 122,388 Special Mention ā ā 988 ā ā 6,052 ā ā 5,749 ā ā 4,198 ā ā 9,907 ā ā 30,455 ā ā 1,121 ā ā 58,470 Substandard ā ā ā ā ā 4,858 ā ā 5,159 ā ā 914 ā ā 1,555 ā ā 21,101 ā ā 999 ā ā 34,586 Total Commercial Real Estate - Owner Occupied ā $ 289,452 ā $ 401,062 ā $ 333,715 ā $ 254,094 ā $ 164,702 ā $ 663,278 ā $ 22,606 ā $ 2,128,909 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial Real Estate - Non-Owner Occupied ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 381,849 ā $ 455,427 ā $ 433,183 ā $ 403,677 ā $ 336,630 ā $ 850,035 ā $ 30,421 ā $ 2,891,222 Watch ā ā 28,354 ā ā 142,279 ā ā 76,838 ā ā 59,451 ā ā 79,533 ā ā 224,944 ā ā 16,870 ā ā 628,269 Special Mention ā ā 702 ā ā 11,072 ā ā 34,905 ā ā 18,073 ā ā 40,771 ā ā 11,211 ā ā 723 ā ā 117,457 Substandard ā ā 246 ā ā ā ā ā 13,357 ā ā ā ā ā 25 ā ā 6,986 ā ā ā ā ā 20,614 Total Commercial Real Estate - Non-Owner Occupied ā $ 411,151 ā $ 608,778 ā $ 558,283 ā $ 481,201 ā $ 456,959 ā $ 1,093,176 ā $ 48,014 ā $ 3,657,562 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Commercial & Industrial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 1,730,876 ā $ 350,618 ā $ 199,489 ā $ 67,035 ā $ 71,799 ā $ 140,461 ā $ 590,701 ā $ 3,150,979 Watch ā ā 4,872 ā ā 32,028 ā ā 13,073 ā ā 6,500 ā ā 3,182 ā ā 4,906 ā ā 19,972 ā ā 84,533 Special Mention ā ā 1,009 ā ā 2,178 ā ā 3,890 ā ā 1,150 ā ā 724 ā ā 1,234 ā ā 4,755 ā ā 14,940 Substandard ā ā 534 ā ā 4,269 ā ā 1,274 ā ā 309 ā ā 560 ā ā 2,676 ā ā 3,386 ā ā 13,008 Total Commercial & Industrial ā $ 1,737,291 ā $ 389,093 ā $ 217,726 ā $ 74,994 ā $ 76,265 ā $ 149,277 ā $ 618,814 ā $ 3,263,460 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Multifamily Real Estate ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 144,805 ā $ 85,740 ā $ 150,724 ā $ 117,881 ā $ 67,984 ā $ 231,113 ā $ 2,311 ā $ 800,558 Watch ā ā ā ā ā 5,074 ā ā 475 ā ā ā ā ā 617 ā ā 560 ā ā ā ā ā 6,726 Special Mention ā ā 2,280 ā ā ā ā ā 4,388 ā ā ā ā ā ā ā ā 760 ā ā ā ā ā 7,428 Substandard ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 33 ā ā ā ā ā 33 Total Multifamily Real Estate ā $ 147,085 ā $ 90,814 ā $ 155,587 ā $ 117,881 ā $ 68,601 ā $ 232,466 ā $ 2,311 ā $ 814,745 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Residential 1-4 Family - Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 104,630 ā $ 89,332 ā $ 70,310 ā $ 79,156 ā $ 68,915 ā $ 201,492 ā $ 2,236 ā $ 616,071 Watch ā ā 666 ā ā 6,665 ā ā 8,252 ā ā 4,141 ā ā 4,067 ā ā 9,307 ā ā 195 ā ā 33,293 Special Mention ā ā ā ā ā ā ā ā 601 ā ā 663 ā ā 468 ā ā 5,923 ā ā ā ā ā 7,655 Substandard ā ā 644 ā ā 793 ā ā 4,913 ā ā 1,995 ā ā 986 ā ā 5,111 ā ā 488 ā ā 14,930 Total Residential 1-4 Family - Commercial ā $ 105,940 ā $ 96,790 ā $ 84,076 ā $ 85,955 ā $ 74,436 ā $ 221,833 ā $ 2,919 ā $ 671,949 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 223,490 ā $ 112,045 ā $ 9,549 ā $ 30,314 ā $ 16,494 ā $ 42,158 ā $ 44,180 ā $ 478,230 Watch ā ā ā ā ā ā ā ā 613 ā ā 1,299 ā ā 1,189 ā ā 3,934 ā ā ā ā ā 7,035 Special Mention ā ā 10 ā ā ā ā ā ā ā ā 7 ā ā ā ā ā 4,591 ā ā 102 ā ā 4,710 Total Other Commercial ā $ 223,500 ā $ 112,045 ā $ 10,162 ā $ 31,620 ā $ 17,683 ā $ 50,683 ā $ 44,282 ā $ 489,975 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total Commercial ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pass ā $ 3,188,757 ā $ 1,745,845 ā $ 1,280,638 ā $ 956,192 ā $ 733,053 ā $ 2,089,643 ā $ 712,011 ā $ 10,706,139 Watch ā ā 37,707 ā ā 218,838 ā ā 129,909 ā ā 87,358 ā ā 115,922 ā ā 291,384 ā ā 39,097 ā ā 920,215 Special Mention ā ā 4,989 ā ā 24,834 ā ā 49,668 ā ā 24,091 ā ā 51,870 ā ā 56,829 ā ā 6,701 ā ā 218,982 Substandard ā ā 1,424 ā ā 9,920 ā ā 42,483 ā ā 3,282 ā ā 5,163 ā ā 39,917 ā ā 4,873 ā ā 107,062 Total Commercial ā $ 3,232,877 ā $ 1,999,437 ā $ 1,502,698 ā $ 1,070,923 ā $ 906,008 ā $ 2,477,773 ā $ 762,682 ā $ 11,952,398 ā Consumer Loans ā For Consumer loans, the Company evaluates credit quality based on the delinquency status of the loan. The following table details the amortized cost of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of March 31, 2021 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2021 ā ā ā Term Loans Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2021 ā 2020 ā 2019 ā 2018 ā 2017 ā Prior ā Revolving Loans ā Total Residential 1-4 Family - Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 59,779 ā $ 203,048 ā $ 73,588 ā $ 56,557 ā $ 58,921 ā $ 339,562 ā $ 11 ā $ 791,466 30-59 Days Past Due ā ā ā ā ā ā ā ā 1,007 ā ā 499 ā ā 1,474 ā ā 3,851 ā ā ā ā ā 6,831 60-89 Days Past Due ā ā ā ā ā ā ā ā ā ā ā ā ā ā 108 ā ā 700 ā ā ā ā ā 808 90+ Days Past Due ā ā ā ā ā 607 ā ā 831 ā ā ā ā ā 27 ā ā 1,576 ā ā ā ā ā 3,041 Nonaccrual ā ā ā ā ā ā ā ā 109 ā ā 2,210 ā ā 903 ā ā 11,548 ā ā ā ā ā 14,770 Total Residential 1-4 Family - Consumer ā $ 59,779 ā $ 203,655 ā $ 75,535 ā $ 59,266 ā $ 61,433 ā $ 357,237 ā $ 11 ā $ 816,916 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Residential 1-4 Family - Revolving ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 1,705 ā $ 11,472 ā $ 3,548 ā $ 1,443 ā $ ā ā $ 488 ā $ 538,679 ā $ 557,335 30-59 Days Past Due ā ā ā ā ā 43 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 1,354 ā ā 1,397 60-89 Days Past Due ā ā ā ā ā 41 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 243 ā ā 284 90+ Days Past Due ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 917 ā ā 917 Nonaccrual ā ā ā ā ā 76 ā ā ā ā ā 20 ā ā ā ā ā 226 ā ā 3,531 ā ā 3,853 Total Residential 1-4 Family - Revolving ā $ 1,705 ā $ 11,632 ā $ 3,548 ā $ 1,463 ā $ ā ā $ 714 ā $ 544,724 ā $ 563,786 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 3,126 ā $ 22,775 ā $ 58,410 ā $ 55,650 ā $ 19,059 ā $ 23,877 ā $ 31,541 ā $ 214,438 30-59 Days Past Due ā ā ā ā ā 47 ā ā 167 ā ā 238 ā ā 70 ā ā 40 ā ā 33 ā ā 595 60-89 Days Past Due ā ā ā ā ā 2 ā ā 152 ā ā 122 ā ā 24 ā ā 6 ā ā 8 ā ā 314 90+ Days Past Due ā ā ā ā ā 8 ā ā 6 ā ā 217 ā ā 10 ā ā 5 ā ā 2 ā ā 248 Nonaccrual ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 116 ā ā ā ā ā 116 Total Consumer ā $ 3,126 ā $ 22,832 ā $ 58,735 ā $ 56,227 ā $ 19,163 ā $ 24,044 ā $ 31,584 ā $ 215,711 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Auto ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 37,040 ā $ 166,686 ā $ 104,887 ā $ 49,676 ā $ 28,220 ā $ 18,183 ā $ ā ā $ 404,692 30-59 Days Past Due ā ā 55 ā ā 89 ā ā 244 ā ā 193 ā ā 278 ā ā 176 ā ā ā ā ā 1,035 60-89 Days Past Due ā ā ā ā ā 42 ā ā 82 ā ā 16 ā ā ā ā ā 25 ā ā ā ā ā 165 90+ Days Past Due ā ā ā ā ā 55 ā ā 24 ā ā 4 ā ā 58 ā ā 13 ā ā ā ā ā 154 Nonaccrual ā ā ā ā ā 48 ā ā 28 ā ā 59 ā ā 59 ā ā 109 ā ā ā ā ā 303 Total Auto ā $ 37,095 ā $ 166,920 ā $ 105,265 ā $ 49,948 ā $ 28,615 ā $ 18,506 ā $ ā ā $ 406,349 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Total Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 101,650 ā $ 403,981 ā $ 240,433 ā $ 163,326 ā $ 106,200 ā $ 382,110 ā $ 570,231 ā $ 1,967,931 30-59 Days Past Due ā ā 55 ā ā 179 ā ā 1,418 ā ā 930 ā ā 1,822 ā ā 4,067 ā ā 1,387 ā ā 9,858 60-89 Days Past Due ā ā ā ā ā 85 ā ā 234 ā ā 138 ā ā 132 ā ā 731 ā ā 251 ā ā 1,571 90+ Days Past Due ā ā ā ā ā 670 ā ā 861 ā ā 221 ā ā 95 ā ā 1,594 ā ā 919 ā ā 4,360 Nonaccrual ā ā ā ā ā 124 ā ā 137 ā ā 2,289 ā ā 962 ā ā 11,999 ā ā 3,531 ā ā 19,042 Total Consumer ā $ 101,705 ā $ 405,039 ā $ 243,083 ā $ 166,904 ā $ 109,211 ā $ 400,501 ā $ 576,319 ā $ 2,002,762 ā The Company did not have any material revolving lo ans convert to term during the three months ended March 31, 2021 . ā ā ā ā The following table details the amortized cost of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of December 31, 2020 (dollars in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2020 ā ā ā Term Loans Amortized Cost Basis by Origination Year ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020 ā 2019 ā 2018 ā 2017 ā 2016 ā Prior ā Revolving Loans ā Total Residential 1-4 Family - Consumer ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current ā $ 213,763 ā $ 75,133 ā $ 64,299 ā $ 68,320 ā $ 102,123 ā $ 269,203 ā $ 11 ā $ 792,852 30-59 Days Past Due ā ā 678 ā |