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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
 
FORM 10-Q
 
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2021.
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ______ to ______

Commission file number 001-15373

ENTERPRISE FINANCIAL SERVICES CORP

Incorporated in the State of Delaware
I.R.S. Employer Identification # 43-1706259
Address: 150 North Meramec
Clayton, MO 63105
Telephone: (314) 725-5500
___________________
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareEFSCNasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
Yes   No
 
As of April 27, 2021, the Registrant had 31,259,491 shares of outstanding common stock, $0.01 par value per share.

This document is also available through our website at http://www.enterprisebank.com.





ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
TABLE OF CONTENTS
 
  Page
PART I - FINANCIAL INFORMATION 
   
Item 1.  Financial Statements 
  
Condensed Consolidated Balance Sheets (Unaudited)
 
Condensed Consolidated Statements of Operations (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
 
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
 
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
  
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  
Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
Item 4. Controls and Procedures
 
PART II - OTHER INFORMATION
  
Item 1.  Legal Proceedings
Item 1A.  Risk Factors
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
 
Signatures
 



Glossary of Acronyms, Abbreviations and Entities

The acronyms and abbreviations identified below are used in various sections of this Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Item 2 and the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements in Item 1 of this Form 10-Q.
ACLAllowance for Credit LossesFHLBFederal Home Loan Bank
ASCAccounting Standards CodificationGAAPGenerally Accepted Accounting Principles (United States)
ASUAccounting Standards UpdateLIBORLondon Interbank Offered Rate
BankEnterprise Bank & TrustMD&AManagement’s Discussion and Analysis of Financial Condition and Results of Operations
C&ICommercial and IndustrialNIMNet Interest Margin
CECLCurrent Expected Credit LossPCDPurchased Credit Deteriorated
CompanyEnterprise Financial Services Corp and SubsidiariesPCIPurchased Credit Impaired
CRECommercial Real EstatePPPPaycheck Protection Program
DCFDiscounted Cash FlowSBASmall Business Administration
EFSCEnterprise Financial Services CorpSCBHSeacoast Commerce Banc Holdings
EnterpriseEnterprise Financial Services Corp and SubsidiariesSeacoastSeacoast Commerce Bank
FASBFinancial Accounting Standards BoardSECSecurities and Exchange Commission
FDICFederal Deposit Insurance CorporationSOFRSecured Overnight Financing Rate




PART 1 - ITEM 1 - FINANCIAL STATEMENTS
ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)March 31, 2021December 31, 2020
Assets  
Cash and due from banks$103,367 $99,760 
Federal funds sold1,638 1,519 
Interest-earning deposits (including $23,835 and $36,525 pledged as collateral, respectively)778,810 436,424 
Total cash and cash equivalents883,815 537,703 
Interest-earning deposits greater than 90 days8,016 7,626 
Securities available-for-sale945,660 912,429 
Securities held-to-maturity, net467,059 487,610 
Loans held-for-sale8,531 13,564 
Loans7,288,781 7,224,935 
Less: Allowance for credit losses on loans
131,527 136,671 
Total loans, net
7,157,254 7,088,264 
Other investments51,099 48,764 
Fixed assets, net52,078 53,169 
Goodwill260,567 260,567 
Intangible assets, net21,670 23,084 
Other assets334,950 318,791 
Total assets$10,190,699 $9,751,571 
Liabilities and Shareholders' Equity  
Noninterest-bearing deposit accounts$2,910,216 $2,711,828 
Interest-bearing transaction accounts1,990,308 1,768,497 
Money market accounts2,405,451 2,327,066 
Savings accounts688,118 627,903 
Certificates of deposit: 
Brokered50,209 50,209 
Other471,142 499,886 
Total deposits8,515,444 7,985,389 
Subordinated debentures and notes203,778 203,637 
FHLB advances50,000 50,000 
Other borrowings202,246 271,081 
Notes payable27,143 30,000 
Other liabilities99,591 132,489 
Total liabilities$9,098,202 $8,672,596 
Commitments and contingent liabilities (Note 5)
Shareholders' equity:  
Preferred stock, $0.01 par value;
5,000,000 shares authorized; 0 shares issued and outstanding
  
Common stock, $0.01 par value; 45,000,000 shares authorized; 33,239,276 and 33,190,306 shares issued, respectively332 332 
Treasury stock, at cost; 1,980,093 shares(73,528)(73,528)
Additional paid in capital698,005 697,839 
Retained earnings441,511 417,212 
Accumulated other comprehensive income26,177 37,120 
Total shareholders' equity1,092,497 1,078,975 
Total liabilities and shareholders' equity$10,190,699 $9,751,571 
The accompanying notes are an integral part of these consolidated financial statements.
1


ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
 Three months ended March 31,
(in thousands, except per share data)20212020
Interest income:
Interest and fees on loans$76,973 $67,169 
Interest on debt securities:
Taxable4,540 7,557 
Nontaxable3,079 1,489 
Interest on interest-earning deposits189 300 
Dividends on equity securities179 173 
Total interest income84,960 76,688 
Interest expense:
Deposits2,663 9,888 
Subordinated debentures and notes2,819 1,919 
FHLB advances195 895 
Notes payable and other borrowings160 618 
Total interest expense5,837 13,320 
Net interest income79,123 63,368 
Provision for credit losses46 22,264 
Net interest income after provision for credit losses79,077 41,104 
Noninterest income:
Service charges on deposit accounts3,084 3,143 
Wealth management revenue2,483 2,501 
Card services revenue2,496 2,247 
Tax credit income (expense)(1,041)2,036 
Miscellaneous income4,268 3,481 
Total noninterest income11,290 13,408 
Noninterest expense:
Employee compensation and benefits29,562 21,685 
Occupancy3,751 3,347 
Data processing2,890 2,082 
Professional fees988 862 
Merger-related expenses3,142  
Other12,551 10,697 
Total noninterest expense52,884 38,673 
Income before income tax expense37,483 15,839 
Income tax expense7,557 2,971 
Net income$29,926 $12,868 
Earnings per common share
Basic$0.96 $0.49 
Diluted0.96 0.48 
The accompanying notes are an integral part of these consolidated financial statements.
2



ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Three months ended March 31,
(in thousands)20212020
Net income$29,926 $12,868 
Other comprehensive income (loss), after-tax:
Change in unrealized gain (loss) on available-for-sale debt securities(10,920)10,564 
Reclassification adjustment for realized gain on sale of available-for-sale debt securities (3)
Reclassification of gain on held-to-maturity securities(1,149)(156)
Change in unrealized gain (loss) on cash flow hedges arising during the period847 (5,180)
Reclassification of loss on cash flow hedges279 123 
Total other comprehensive income (loss), after-tax(10,943)5,348 
Comprehensive income$18,983 $18,216 

The accompanying notes are an integral part of these consolidated financial statements.

3


ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
Three months ended March 31, 2021
(in thousands, except per share data)Common StockTreasury StockAdditional paid in capitalRetained earningsAccumulated
other
comprehensive income (loss)
Total
shareholders’ equity
Balance at December 31, 2020$332 $(73,528)$697,839 $417,212 $37,120 $1,078,975 
Net income   29,926  29,926 
Other comprehensive income (loss)    (10,943)(10,943)
Comprehensive income   29,926 (10,943)18,983 
Cash dividends paid on common shares, $0.18 per share   (5,627) (5,627)
Issuance under equity compensation plans, 48,970 shares, net  (1,109)  (1,109)
Share-based compensation  1,275   1,275 
Balance at March 31, 2021$332 $(73,528)$698,005 $441,511 $26,177 $1,092,497 
Three months ended March 31, 2020
(in thousands, except per share data)Common StockTreasury StockAdditional paid in capitalRetained earningsAccumulated
other
comprehensive income (loss)
Total
shareholders’ equity
Balance at December 31, 2019$281 $(58,181)$526,599 $380,737 $17,749 $867,185 
Net income   12,868  12,868 
Other comprehensive income    5,348 5,348 
Comprehensive income    12,868 5,348 18,216 
Cash dividends paid on common shares, $0.18 per share   (4,743) (4,743)
Repurchase of common shares (15,347)   (15,347)
Issuance under equity compensation plans, 73,515 shares, net  (1,721)  (1,721)
Share-based compensation  960   960 
Reclassification for the adoption of ASU 2016-13 (CECL)— — — (18,114)— (18,114)
Balance at March 31, 2020$281 $(73,528)$525,838 $370,748 $23,097 $846,436 
The accompanying notes are an integral part of these consolidated financial statements.
4


ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
 Three months ended March 31,
(in thousands, except share data)20212020
Cash flows from operating activities:  
Net income$29,926 $12,868 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation1,581 1,524 
Provision for credit losses46 22,264 
Deferred income taxes3,834 (183)
Net amortization of debt securities1,937 1,054 
Amortization of intangible assets1,415 1,491 
Mortgage loans originated-for-sale(49,065)(33,537)
Proceeds from mortgage loans sold52,908 30,888 
Loss (gain) on:
Sale of investment securities (4)
Sale of other real estate(47)52 
Sale of state tax credits(326)(124)
Share-based compensation1,275 960 
Net accretion of loan discount(736)(2,510)
Changes in other assets and liabilities, net(46,423)(2,181)
Net cash (used in) provided by operating activities(3,675)32,562 
Cash flows from investing activities:  
Net increase in loans(69,907)(134,482)
Proceeds received from:
Sale of debt securities, available-for-sale 207 
Paydown or maturity of debt securities, available-for-sale69,953 55,932 
Paydown or maturity of debt securities, held-to-maturity18,220 1,595 
Redemption of other investments752 24,310 
Sale of state tax credits held for sale1,632 1,186 
Sale of other real estate450 443 
Payments for the purchase of:
Available-for-sale debt securities(118,791)(69,336)
Other investments(3,660)(28,809)
State tax credits held for sale (3,780)
Fixed assets, net(489)(918)
Net cash used in investing activities(101,840)(153,652)
Cash flows from financing activities:  
Net increase in noninterest-bearing deposit accounts198,389 27,223 
Net increase in interest-bearing deposit accounts331,666 191,659 
Proceeds from FHLB advances, net (300)
Repayments of notes payable(2,857)(1,429)
Net decrease in other borrowings(68,835)(57,825)
Cash dividends paid on common stock(5,627)(4,743)
Payments for the repurchase of common stock (15,347)
Payments for the issuance of equity instruments, net(1,109)(1,721)
Net cash provided by financing activities451,627 137,517 
Net increase in cash and cash equivalents346,112 16,427 
Cash and cash equivalents, beginning of period537,703 167,256 
Cash and cash equivalents, end of period$883,815 $183,683 
Supplemental disclosures of cash flow information:  
Cash paid during the period for:  
Interest$4,836 $13,026 
Income taxes30,167  
Noncash transactions:
Transfer to other real estate owned in settlement of loans$1,236 $ 
Right-of-use assets obtained in exchange for lease obligations 200 

The accompanying notes are an integral part of these consolidated financial statements.
5


ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by Enterprise Financial Services Corp (the “Company,” “EFSC,” or “Enterprise”) in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Kansas, Missouri, Nevada, and New Mexico through its banking subsidiary, Enterprise Bank & Trust.

Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2021. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC.

Basis of Financial Statement Presentation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated.

In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the statements of financial position, results of operations, and cash flow for the interim periods.

Recent Accounting Pronouncements

FASB ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued “Reference Rate Reform (Topic 848)” which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The guidance is effective for contract modifications as of March 12, 2020 through December 31, 2022. The Company is actively working to amend and address impacted contracts to allow for a replacement index. Additionally, the Company is currently evaluating the optional expedients and exceptions and has not yet determined the impact this standard may have on its consolidated financial statements.


6


NOTE 2 - EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

The following table presents a summary of per common share data and amounts for the periods indicated.
 Three months ended March 31,
(in thousands, except per share data)20212020
Net income as reported$29,926 $12,868 
Weighted average common shares outstanding31,247 26,473 
Additional dilutive common stock equivalents59 66 
Weighted average diluted common shares outstanding31,306 26,539 
Basic earnings per common share:$0.96 $0.49 
Diluted earnings per common share:0.96 0.48 
For the three months ended March 31, 2021 common stock equivalents of approximately 222,000 were excluded from the earnings per share calculations because their effect would have been anti-dilutive. Comparatively, there were 62,000 common stock equivalents excluded in the prior year period.

NOTE 3 - INVESTMENTS

The following tables present the amortized cost, gross unrealized gains and losses, allowance of credit losses and fair value of securities available for sale and held to maturity:
 
 March 31, 2021
(in thousands)Amortized CostGross
Unrealized Gains
Gross
Unrealized Losses
Fair Value
Available-for-sale securities:    
Obligations of U.S. Government-sponsored enterprises$23,484 $137 $(176)$23,445 
Obligations of states and political subdivisions404,087 3,132 (3,662)403,557 
Agency mortgage-backed securities477,151 16,841 (1,911)492,081 
U.S. Treasury bills10,982 427  11,409 
Corporate debt securities14,750 425 (7)15,168 
          Total securities available for sale$930,454 $20,962 $(5,756)$945,660 
Held-to-maturity securities:
Obligations of states and political subdivisions$244,030 $900 $(2,491)$242,439 
Agency mortgage-backed securities96,777 1,432 (458)97,751 
Corporate debt securities126,701 3,208  129,909 
          Total securities held-to-maturity$467,508 $5,540 $(2,949)$470,099 
Less: Allowance for credit losses449 
          Total securities held-to-maturity, net$467,059 
7


 December 31, 2020
(in thousands)Amortized CostGross
Unrealized Gains
Gross
Unrealized Losses
Fair Value
Available-for-sale securities:    
    Obligations of U.S. Government-sponsored enterprises$14,978 $186 $(3)$15,161 
    Obligations of states and political subdivisions335,271 8,994 (33)344,232 
    Agency mortgage-backed securities506,703 20,190 (321)526,572 
U.S. Treasury Bills10,980 486  11,466 
Corporate debt securities14,750 248  14,998 
          Total securities available for sale$882,682 $30,104 $(357)$912,429 
Held-to-maturity securities:
   Obligations of states and political subdivisions$248,324 $2,814 $ $251,138 
   Agency mortgage-backed securities112,742 2,295 (496)114,541 
Corporate debt securities126,993 8,851  135,844 
          Total securities held to maturity$488,059 $13,960 $(496)$501,523 
Less: Allowance for credit losses449 
Total securities held-to-maturity, net$487,610 


At March 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities having a fair value of $465.9 million and $525.8 million at March 31, 2021 and December 31, 2020, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at March 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 3 years.
Available for saleHeld to maturity
(in thousands)Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due in one year or less$11,176 $11,316 $ $ 
Due after one year through five years23,972 24,517 12,733 13,109 
Due after five years through ten years32,875 33,175 132,553 135,497 
Due after ten years385,280 384,571 225,445 223,742 
Agency mortgage-backed securities477,151 492,081 96,777 97,751 
 $930,454 $945,660 $467,508 $470,099 

8


The following tables presents a summary of available-for-sale investment securities in an unrealized loss position:
 March 31, 2021
Less than 12 months12 months or moreTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Obligations of U.S. Government-sponsored enterprises$13,324 $176 $ $ $13,324 $176 
Obligations of states and political subdivisions$222,901 $3,662 $ $ $222,901 $3,662 
Agency mortgage-backed securities89,591 1,911   89,591 1,911 
Corporate debt securities4,493 7   4,493 7 
 $330,309 $5,756 $ $ $330,309 $5,756 
 December 31, 2020
Less than 12 months12 months or moreTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Obligations of U.S. Government-sponsored enterprises$4,997 $3 $ $ $4,997 $3 
Obligations of states and political subdivisions$4,079 $33 $ $ $4,079 $33 
Agency mortgage-backed securities65,986 321   65,986 321 
 $75,062 $357 $ $ $75,062 $357 

The unrealized losses at both March 31, 2021 and December 31, 2020 were primarily attributable to changes in market interest rates after the securities were purchased. At March 31, 2021, the Company had not recorded an ACL on available-for-sale securities. At March 31, 2021, the Company had not recognized an other-than-temporary impairment.

Accrued interest receivable on held-to-maturity debt securities totaled $3.5 million at March 31, 2021 and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. At March 31, 2021, the ACL on held-to-maturity securities was $0.4 million.

During the three months ended March 31, 2021, there were no sales of available-for-sale investment securities. Proceeds from sales of available-for-sale investment securities during the three months ended March 31, 2020 were $207 thousand and gross gains were $4 thousand.

Other Investments
At March 31, 2021 and December 31, 2020, other investments totaled $51.1 million and $48.8 million, respectively. As a member of the FHLB system administered by the Federal Housing Finance Agency, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $12.0 million and $10.8 million at March 31, 2021 and December 31, 2020, respectively, is recorded at cost, which represents redemption value, and is included in other investments in the consolidated balance sheets. The remaining amounts in other investments primarily include various investments in SBICs, CDFIs, and the Company’s investment in unconsolidated trusts used to issue preferred securities to third parties.

9


NOTE 4 - LOANS

The following table presents a summary of loans by category:
 
(in thousands)March 31, 2021December 31, 2020
Commercial and industrial$3,096,319 $3,100,299 
Real estate:  
Commercial - investor owned1,669,215 1,589,419 
Commercial - owner occupied1,517,755 1,498,408 
Construction and land development510,501 546,686 
Residential303,047 319,179 
Total real estate loans4,000,518 3,953,692 
Other212,068 187,083 
Loans, before unearned loan fees7,308,905 7,241,074 
Unearned loan fees, net(20,124)(16,139)
Loans, including unearned loan fees$7,288,781 $7,224,935 

PPP loans totaled $754.4 million at March 31, 2021, or $737.7 million net of deferred fees of $16.7 million. The loan balance at March 31, 2021 also includes a net premium on acquired loans of $17.7 million. At March 31, 2021 loans of $2.7 billion were pledged to FHLB and the Federal Reserve Bank.

PPP loans totaled $709.9 million at December 31, 2020, or $698.6 million net of unearned fees of $11.3 million. The loan balance includes a net premium on acquired loans of $16.1 million at December 31, 2020. At December 31, 2020 loans of $2.5 billion were pledged to FHLB and the Federal Reserve Bank.

The Company has elected to present the accrued interest receivable balance separate from amortized cost basis, to exclude accrued interest receivable balances from the tabular disclosures, and not to estimate an ACL on accrued interest receivable as these amounts are timely written off as a credit loss expense.

Accrued interest receivable totaled $30.7 million at March 31, 2021 and was reported in Other Assets on the consolidated balance sheets.

A summary of the activity in the ACL on loans by category for the three months ended March 31, 2021 is as follows:
(in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied
Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at December 31, 2020$58,812 $32,062 $17,012