LOANS AND ALLOWANCE FOR LOAN LOSSES | 4. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES On January 1, 2020, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1 “Summary of Significant Accounting Policies” in this Form 10-K. All loan information presented as of December 31, 2021 and 2020 is in accordance with ASC 326. All loan information presented prior to January 1, 2020 is in accordance with previous applicable GAAP. The information included below reflects the impact of the CARES Act, as amended by the CAA, and the Joint Guidance. See Note 1 “Summary of Significant Accounting Policies” in this Form 10-K for information about COVID-19 and related legislative and regulatory developments. Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2021 and 2020 (dollars in thousands): 2021 2020 Construction and Land Development $ 862,236 $ 925,798 Commercial Real Estate - Owner Occupied 1,995,409 2,128,909 Commercial Real Estate - Non-Owner Occupied 3,789,377 3,657,562 Multifamily Real Estate 778,626 814,745 Commercial & Industrial (1) 2,542,243 3,263,460 Residential 1-4 Family - Commercial 607,337 671,949 Residential 1-4 Family - Consumer 816,524 822,866 Residential 1-4 Family - Revolving 560,796 596,996 Auto 461,052 401,324 Consumer 176,992 247,730 Other Commercial (2) 605,251 489,975 Total LHFI, net of deferred fees and costs (3) 13,195,843 14,021,314 Allowance for loan and lease losses (99,787) (160,540) Total LHFI, net $ 13,096,056 $ 13,860,774 (1) Commercial & industrial loans include approximately $145.3 million and $1.2 billion in loans from the PPP at December 31, 2021 and December 31, 2020, respectively. (2) Other commercial loans include approximately $5.1 million and $11.3 million in loans from the PPP at December 31, 2021 and, December 31, 2020, respectively. (3) Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $49.3 million and $69.7 million as of December 31, 2021 and December 31, 2020, respectively. The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2021 (dollars in thousands): Greater than 30-59 Days 60-89 Days 90 Days and Current Past Due Past Due still Accruing Nonaccrual Total Loans Construction and Land Development $ 857,883 $ 1,357 $ — $ 299 $ 2,697 $ 862,236 Commercial Real Estate - Owner Occupied 1,987,133 1,230 152 1,257 5,637 1,995,409 Commercial Real Estate - Non-Owner Occupied 3,783,211 1,965 127 433 3,641 3,789,377 Multifamily Real Estate 778,429 84 — — 113 778,626 Commercial & Industrial 2,536,100 1,161 1,438 1,897 1,647 2,542,243 Residential 1-4 Family - Commercial 601,946 1,844 272 990 2,285 607,337 Residential 1-4 Family - Consumer 795,821 3,368 2,925 3,013 11,397 816,524 Residential 1-4 Family - Revolving 554,652 1,493 363 882 3,406 560,796 Auto 458,473 1,866 249 241 223 461,052 Consumer 175,943 689 186 120 54 176,992 Other Commercial 605,214 37 — — — 605,251 Total LHFI $ 13,134,805 $ 15,094 $ 5,712 $ 9,132 $ 31,100 $ 13,195,843 % of total loans 99.54 % 0.11 % 0.04 % 0.07 % 0.24 % 100.00 % The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2020 (dollars in thousands): Greater than 30-59 Days 60-89 Days 90 Days and Current Past Due Past Due still Accruing Nonaccrual Total Loans Construction and Land Development $ 920,276 $ 1,903 $ 547 $ — $ 3,072 $ 925,798 Commercial Real Estate - Owner Occupied 2,114,804 1,870 1,380 3,727 7,128 2,128,909 Commercial Real Estate - Non-Owner Occupied 3,651,232 2,144 1,721 148 2,317 3,657,562 Multifamily Real Estate 814,095 617 — — 33 814,745 Commercial & Industrial 3,257,201 1,848 1,190 1,114 2,107 3,263,460 Residential 1-4 Family - Commercial 657,351 2,227 818 1,560 9,993 671,949 Residential 1-4 Family - Consumer 792,852 10,182 1,533 5,699 12,600 822,866 Residential 1-4 Family - Revolving 587,522 2,975 1,044 826 4,629 596,996 Auto 398,206 2,076 376 166 500 401,324 Consumer 245,551 1,166 550 394 69 247,730 Other Commercial 489,959 16 — — — 489,975 Total LHFI $ 13,929,049 $ 27,024 $ 9,159 $ 13,634 $ 42,448 $ 14,021,314 % of total loans 99.34 % 0.19 % 0.07 % 0.10 % 0.30 % 100.00 % The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of December 31, 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, 2021 (dollars in thousands): Nonaccrual December 31, 2020 December 31, 2021 Nonaccrual With No ALLL 90 Days Past due and still Accruing Construction and Land Development $ 3,072 $ 2,697 $ 1,985 $ 299 Commercial Real Estate - Owner Occupied 7,128 5,637 970 1,257 Commercial Real Estate - Non-Owner Occupied 2,317 3,641 1,089 433 Multifamily Real Estate 33 113 — — Commercial & Industrial 2,107 1,647 1 1,897 Residential 1-4 Family - Commercial 9,993 2,285 — 990 Residential 1-4 Family - Consumer 12,600 11,397 — 3,013 Residential 1-4 Family - Revolving 4,629 3,406 — 882 Auto 500 223 — 241 Consumer 69 54 — 120 Total LHFI $ 42,448 $ 31,100 $ 4,045 $ 9,132 The following table shows the Company’s 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): Nonaccrual January 1, 2020 December 31, 2020 Nonaccrual With No ALLL 90 Days Past due and still Accruing Construction and Land Development $ 4,060 $ 3,072 $ 1,985 $ — Commercial Real Estate - Owner Occupied 13,889 7,128 1,994 3,727 Commercial Real Estate - Non-Owner Occupied 1,368 2,317 — 148 Multifamily Real Estate — 33 — — Commercial & Industrial 3,037 2,107 1 1,114 Residential 1-4 Family - Commercial 6,492 9,993 6,388 1,560 Residential 1-4 Family - Consumer 13,117 12,600 1,069 5,699 Residential 1-4 Family - Revolving 2,490 4,629 60 826 Auto 565 500 — 166 Consumer 88 69 — 394 Other Commercial 98 — — — Total LHFI $ 45,204 $ 42,448 $ 11,497 $ 13,634 There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021 and 2020. See Note 1 “Summary of Significant Accounting Policies” for additional information on the Company’s policies for nonaccrual loans. Troubled Debt Restructurings 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 also 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 December 31, 2021, there were no material loans still under their modified terms. As of December 31, 2020, the Company had approximately $146.1 million in loans still under their modified terms. The Company’s modification program primarily included payment deferrals and interest only modifications. As of December 31, 2021, the Company has TDRs totaling $18.0 million with an estimated $859,000 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. A TDR occurs when a lender, for economic or legal reasons, grants a concession to the borrower related to the borrower’s financial difficulties, that it would not otherwise consider. All loans that are considered to be TDRs are evaluated for credit losses in accordance with the Company’s ALLL methodology. For the years ended December 31, 2021 and 2020, the recorded investment in TDRs prior to modifications was not materially impacted by the modifications. The 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 December 31, 2021 and 2020 (dollars in thousands): December 31, 2021 December 31, 2020 No. of Recorded Outstanding No. of Recorded Outstanding Loans Investment Commitment Loans Investment Commitment Performing Construction and Land Development 4 $ 201 $ — 4 $ 215 $ — Commercial Real Estate - Owner Occupied 3 572 — 6 2,033 176 Commercial Real Estate - Non-Owner Occupied — — — 1 1,089 — Commercial & Industrial — — — 4 727 — Residential 1-4 Family - Commercial — — — 3 245 — Residential 1-4 Family - Consumer 75 9,021 — 77 8,943 — Residential 1-4 Family - Revolving 3 265 4 3 277 — Consumer 2 15 — 3 22 — Other Commercial 1 239 — 1 410 — Total performing 88 $ 10,313 $ 4 102 $ 13,961 $ 176 Nonperforming Commercial Real Estate - Owner Occupied 2 $ 830 $ — 1 $ 20 $ — Commercial Real Estate - Non-Owner Occupied 3 1,357 — 1 134 — Commercial & Industrial 3 729 — 3 237 — Residential 1-4 Family - Commercial 3 388 — 4 1,296 — Residential 1-4 Family - Consumer 24 4,239 — 23 4,865 — Residential 1-4 Family - Revolving 3 99 — 3 103 — Total nonperforming 38 $ 7,642 $ — 35 $ 6,655 $ — Total performing and nonperforming 126 $ 17,955 $ 4 137 $ 20,616 $ 176 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 years ended December 31, 2021 and 2020, 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. The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2021 and 2020 (dollars in thousands): All Restructurings 2021 2020 Recorded Recorded No. of Investment at No. of Investment at Loans Period End Loans Period End Modified to interest only, at a market rate Residential 1-4 Family - Commercial — $ — 1 644 Total interest only at market rate of interest — $ — 1 $ 644 Term modification, at a market rate Commercial & Industrial — $ — 3 103 Commercial Real Estate - Non-Owner Occupied 1 153 — — Residential 1-4 Family - Commercial — — 1 294 Residential 1-4 Family - Consumer 2 101 4 320 Consumer — — 1 9 Total loan term extended at a market rate 3 $ 254 9 $ 726 Term modification, below market rate Construction and Land Development — $ — 1 $ 34 Commercial & Industrial — — 2 355 Residential 1-4 Family - Commercial — — 1 287 Residential 1-4 Family - Consumer 12 1,810 18 2,519 Residential 1-4 Family - Revolving — — 2 275 Consumer 1 15 — — Total loan term extended at a below market rate 13 $ 1,825 24 $ 3,470 Interest rate modification, below market rate Residential 1-4 Family - Commercial 1 $ 45 — $ — Total interest only at below market rate of interest 1 $ 45 — $ — Total 17 $ 2,124 34 $ 4,840 Allowance for Loan and Lease Losses 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. Each loan segment is further disaggregated into classes based on similar risk characteristics. The Company has identified the following classes within each loan segment: ● Commercial : Construction and Land Development, Commercial Real Estate – Owner Occupied, Commercial Real Estate – Non-Owner Occupied, Multifamily Real Estate, Commercial & Industrial, Residential 1-4 Family – Commercial, and Other Commercial ● Consumer : Residential 1-4 Family – Consumer, Residential 1-4 Family – Revolving, Auto, and Consumer The following tables show the ALLL activity by loan segment for the years ended December 31, 2021 and 2020 (dollars in thousands): Year Ended December 31, 2021 Year Ended December 31, 2020 Commercial Consumer Total Commercial Consumer Total Balance at beginning of period $ 117,403 $ 43,137 $ 160,540 $ 30,941 $ 11,353 $ 42,294 Impact of ASC 326 adoption on non-PCD loans — — — 4,432 40,666 45,098 Impact of ASC 326 adoption on PCD loans — — — 1,752 634 2,386 Impact of adopting ASC 326 — — — 6,184 41,300 47,484 Loans charged-off (5,186) (4,897) (10,083) (6,671) (11,522) (18,193) Recoveries credited to allowance 4,915 3,303 8,218 3,517 3,238 6,755 Provision charged to operations (39,230) (19,658) (58,888) 83,432 (1,232) 82,200 Balance at end of period $ 77,902 $ 21,885 $ 99,787 $ 117,403 $ 43,137 $ 160,540 Credit Quality Indicators Credit quality indicators are utilized to help estimate the collectability of each loan class within the Commercial and Consumer loan 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 Company’s 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. Commercial Loans 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 ACL. 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: Pass is determined by the following criteria: ● Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; ● Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; ● Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; ● Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; ● 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. Watch is determined by the following criteria: ● 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 borrower’s ability to repay; Special Mention is determined by the following criteria: ● 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 Company’s credit position. Substandard is determined by the following criteria: ● 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. Doubtful is determined by the following criteria: ● 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; ● 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 December 31, 2021 (dollars in thousands): December 31, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Total Construction and Land Development Pass $ 430,764 $ 218,672 $ 39,937 $ 40,128 $ 11,299 $ 50,908 $ 22,996 $ 814,704 Watch 395 185 12,923 129 349 4,026 - 18,007 Special Mention - - - - - 735 - 735 Substandard 3,541 1 221 19,264 198 5,565 - 28,790 Total Construction and Land Development $ 434,700 $ 218,858 $ 53,081 $ 59,521 $ 11,846 $ 61,234 $ 22,996 $ 862,236 Commercial Real Estate - Owner Occupied Pass $ 222,079 $ 279,165 $ 321,503 $ 263,422 $ 179,994 $ 555,540 $ 19,705 $ 1,841,408 Watch 185 18 7,959 10,875 14,648 57,466 702 91,853 Special Mention - 932 11,826 610 1,052 19,480 507 34,407 Substandard 200 153 7,455 2,538 1,935 14,834 626 27,741 Total Commercial Real Estate - Owner Occupied $ 222,464 $ 280,268 $ 348,743 $ 277,445 $ 197,629 $ 647,320 $ 21,540 $ 1,995,409 Commercial Real Estate - Non-Owner Occupied Pass $ 642,386 $ 421,063 $ 520,035 $ 377,176 $ 374,949 $ 1,102,193 $ 36,568 $ 3,474,370 Watch 2,152 841 35,721 39,356 18,242 101,797 14 198,123 Special Mention - 10,609 25,691 20,119 12,741 4,775 — 73,935 Substandard - - 23,376 11,369 — 7,952 252 42,949 Total Commercial Real Estate - Non-Owner Occupied $ 644,538 $ 432,513 $ 604,823 $ 448,020 $ 405,932 $ 1,216,717 $ 36,834 $ 3,789,377 Commercial & Industrial Pass $ 770,662 $ 450,478 $ 287,926 $ 110,710 $ 38,395 $ 170,857 $ 619,583 $ 2,448,611 Watch 1,233 9,641 2,766 31,635 1,370 4,405 17,220 68,270 Special Mention 206 935 8,477 1,023 564 561 3,249 15,015 Substandard 379 575 3,636 1,965 463 1,639 1,690 10,347 Total Commercial & Industrial $ 772,480 $ 461,629 $ 302,805 $ 145,333 $ 40,792 $ 177,462 $ 641,742 $ 2,542,243 Multifamily Real Estate Pass $ 63,431 $ 187,616 $ 108,402 $ 114,077 $ 66,562 $ 228,013 $ 1,548 $ 769,649 Watch — — 359 459 — 522 — 1,340 Special Mention 44 2,248 624 4,517 — 91 — 7,524 Substandard — — — — — 113 — 113 Total Multifamily Real Estate $ 63,475 $ 189,864 $ 109,385 $ 119,053 $ 66,562 $ 228,739 $ 1,548 $ 778,626 Residential 1-4 Family - Commercial Pass $ 108,259 $ 94,184 $ 65,682 $ 46,267 $ 55,995 $ 196,052 $ 550 $ 566,989 Watch — 2,041 4,887 7,483 2,415 7,573 311 24,710 Special Mention — 96 — 436 391 4,126 — 5,049 Substandard 93 — 3,494 536 1,291 4,876 299 10,589 Total Residential 1-4 Family - Commercial $ 108,352 $ 96,321 $ 74,063 $ 54,722 $ 60,092 $ 212,627 $ 1,160 $ 607,337 Other Commercial Pass $ 226,595 $ 167,497 $ 98,848 $ 5,620 $ 25,723 $ 44,114 $ 30,445 $ 598,842 Watch — — — 581 1,246 4,341 — 6,168 Special Mention — — — — 2 — — 2 Substandard — — — — — 239 — 239 Total Other Commercial $ 226,595 $ 167,497 $ 98,848 $ 6,201 $ 26,971 $ 48,694 $ 30,445 $ 605,251 Total Commercial Pass $ 2,464,176 $ 1,818,675 $ 1,442,333 $ 957,400 $ 752,917 $ 2,347,677 $ 731,395 $ 10,514,573 Watch 3,965 12,726 64,615 90,518 38,270 180,130 18,247 408,471 Special Mention 250 14,820 46,618 26,705 14,750 29,768 3,756 136,667 Substandard 4,213 729 38,182 35,672 3,887 35,218 2,867 120,768 Total Commercial $ 2,472,604 $ 1,846,950 $ 1,591,748 $ 1,110,295 $ 809,824 $ 2,592,793 $ 756,265 $ 11,180,479 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): December 31, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Total Construction and Land Development Pass $ 316,585 $ 277,142 $ 116,800 $ 24,770 $ 42,970 $ 54,023 $ 23,324 $ 855,614 Watch 1,873 18,181 8,434 344 2,355 6,372 412 37,971 Special Mention — 5,532 135 — — 2,655 — 8,322 Substandard — — 17,780 64 2,037 4,010 — 23,891 Total Construction and Land Development $ 318,458 $ 300,855 $ 143,149 $ 25,178 $ 47,362 $ 67,060 $ 23,736 $ 925,798 Commercial Real Estate - Owner Occupied Pass $ 286,522 $ 375,541 $ 300,583 $ 233,359 $ 128,261 $ 570,361 $ 18,838 $ 1,913,465 Watch 1,942 14,611 22,224 15,623 24,979 41,361 1,648 122,388 Special Mention 988 6,052 5,749 4,198 9,907 30,455 1,121 58,470 Substandard — 4,858 5,159 914 1,555 21,101 999 34,586 Total Commercial Real Estate - Owner Occupied $ 289,452 $ 401,062 $ 333,715 $ 254,094 $ 164,702 $ 663,278 $ 22,606 $ 2,128,909 Commercial Real Estate - Non-Owner Occupied Pass $ 381,849 $ 455,427 $ 433,183 $ 403,677 $ 336,630 $ 850,035 $ 30,421 $ 2,891,222 Watch 28,354 142,279 76,838 59,451 79,533 224,944 16,870 628,269 Special Mention 702 11,072 34,905 18,073 40,771 11,211 723 117,457 Substandard 246 — 13,357 — 25 6,986 — 20,614 Total Commercial Real Estate - Non-Owner Occupied $ 411,151 $ 608,778 $ 558,283 $ 481,201 $ 456,959 $ 1,093,176 $ 48,014 $ 3,657,562 Commercial & Industrial Pass $ 1,730,876 $ 350,618 $ 199,489 $ 67,035 $ 71,799 $ 140,461 $ 590,701 $ 3,150,979 Watch 4,872 32,028 13,073 6,500 3,182 4,906 19,972 84,533 Special Mention 1,009 2,178 3,890 1,150 724 1,234 4,755 14,940 Substandard 534 4,269 1,274 309 560 2,676 3,386 13,008 Total Commercial & Industrial $ 1,737,291 $ 389,093 $ 217,726 $ 74,994 $ 76,265 $ 149,277 $ 618,814 $ 3,263,460 Multifamily Real Estate Pass $ 144,805 $ 85,740 $ 150,724 $ 117,881 $ 67,984 $ 231,113 $ 2,311 $ 800,558 Watch — 5,074 475 — 617 560 — 6,726 Special Mention 2,280 — 4,388 — — 760 — 7,428 Substandard — — — — — 33 — 33 Total Multifamily Real Estate $ 147,085 $ 90,814 $ 155,587 $ 117,881 $ 68,601 $ 232,466 $ 2,311 $ 814,745 Residential 1-4 Family - Commercial Pass $ 104,630 $ 89,332 $ 70,310 $ 79,156 $ 68,915 $ 201,492 $ 2,236 $ 616,071 Watch 666 6,665 8,252 4,141 4,067 9,307 195 33,293 Special Mention — — 601 663 468 5,923 — 7,655 Substandard 644 793 4,913 1,995 986 5,111 488 14,930 Total Residential 1-4 Family - Commercial $ 105,940 $ 96,790 $ 84,076 $ 85,955 $ 74,436 $ 221,833 $ 2,919 $ 671,949 Other Commercial Pass $ 223,490 $ 112,045 $ 9,549 $ 30,314 $ 16,494 $ 42,158 $ 44,180 $ 478,230 Watch — — 613 1,299 1,189 3,934 — 7,035 Special Mention 10 — — 7 — 4,591 102 4,710 Total Other Commercial $ 223,500 $ 112,045 $ 10,162 $ 31,620 $ 17,683 $ 50,683 $ 44,282 $ 489,975 Total Commercial Pass $ 3,188,757 $ 1,745,845 $ 1,280,638 $ 956,192 $ 733,053 $ 2,089,643 $ 712,011 $ 10,706,139 Watch 37,707 218,838 129,909 87,358 115,922 291,384 39,097 920,215 Special Mention 4,989 24,834 49,668 24,091 51,870 56,829 6,701 218,982 Substandard 1,424 9,920 42,483 3,282 5,163 39,917 4,873 107,062 Total Commercial $ 3,232,877 $ 1,999,437 $ 1,502,698 $ 1,070,923 $ 906,008 $ 2,477,773 $ 762,682 $ 11,952,398 Consumer Loans 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 December 31, 2021 (dollars in thousands): December 31, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Total Residential 1-4 Family - Consumer Current $ 248,904 $ 174,459 $ 47,905 $ 33,809 $ 44,179 $ 246,554 $ 11 $ 795,821 30-59 Days Past Due — 157 143 807 460 1,801 — 3,368 60-89 Days Past Due — — — 624 107 2,194 — 2,925 90+ Days Past Due — — 46 20 304 2,643 — 3,013 Nonaccrual 444 — 117 884 1,330 8,622 — 11,397 Total Residential 1-4 Family - Consumer $ 249,348 $ 174,616 $ 48,211 $ 36,144 $ 46,380 $ 261,814 $ 11 $ 816,524 Residential 1-4 Family - Revolving Current $ 16,546 $ 9,511 $ 2,230 $ 1,056 $ — $ 484 $ 524,825 $ 554,652 30-59 Days Past Due — — — — — — 1,493 1,493 60-89 Days Past Due — — — — — — 363 363 90+ Days Past Due — — — — — — 882 882 Nonaccrual — 63 — 18 — — 3,325 3,406 Total Residential 1-4 Family - Revolving $ 16,546 $ 9,574 $ 2,230 $ 1,074 $ — $ 484 $ 530,888 $ 560,796 Auto Current $ 207,229 $ 123,848 $ 72,427 $ 31,745 $ 16,020 $ 7,204 $ — $ 458,473 30-59 Days Past Due 299 382 518 259 245 163 — 1,866 60-89 Days Past Due 45 29 95 33 36 11 — 249 90+ Days Past Due 55 101 42 20 23 — — 241 Nonaccrual — 81 55 27 27 33 — 223 Total Auto $ 207,628 $ 124,441 $ 73,137 $ 32,084 $ 16,351 $ 7,411 $ — $ 461,052 Consumer Current $ 25,084 $ 16,059 $ 38,594 $ 30,890 $ 12,853 $ 16,929 $ 35,534 $ 175,943 30-59 Days Past Due 31 94 201 186 63 26 88 689 60-89 Days Past Due 11 13 62 60 34 — 6 186 90+ Days Past Due 1 4 33 72 8 — 2 120 Nonaccrual — — — — — 54 — 54 Total Consumer $ 25,127 $ 16,170 $ 38,890 $ 31,208 $ 12,958 $ 17,009 $ 35,630 $ 176,992 Total Consumer Current $ 497,763 $ 323,877 $ 161,156 $ 97,500 $ 73,052 $ 271,171 $ 560,370 $ 1,984,889 30-59 Days Past Due 330 633 862 1,252 768 1,990 1,581 7,416 60-89 Days Past Due 56 42 157 717 177 2,205 369 3,723 90+ Days Past Due 56 105 121 112 335 2,643 884 4,256 Nonaccrual 444 144 172 929 1,357 8,709 3,325 15,080 Total Consumer $ 498,649 $ 324,801 $ 162,468 $ 100,510 $ 75,689 $ 286,718 $ 566,529 $ 2,015,364 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): |