Note 5 - Loans

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 5 – LOANS

The loan portfolio is classified based on the underlying collateral utilized to secure each loan for financial reporting purposes. This classification is consistent with the Quarterly Report of Condition and Income filed by the Bank with the Federal Deposit Insurance Corporation (FDIC).

Commercial, financial and agricultural - Includes loans to business enterprises issued for commercial, industrial, agricultural production and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

Real estate – construction – Includes loans secured by real estate to finance land development or the construction of industrial, commercial or residential buildings. Repayment is dependent upon the completion and eventual sale, refinance or operation of the related real estate project.

Owner-occupied commercial real estate mortgage – Includes loans secured by nonfarm nonresidential properties for which the primary source of repayment is the cash flow from the ongoing operations conducted by the party that owns the property.

1-4 family real estate mortgage – Includes loans secured by residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower.

Other real estate mortgage – Includes loans secured by nonowner-occupied properties, including office buildings, industrial buildings, warehouses, retail buildings, multifamily residential properties and farmland. Repayment is primarily dependent on income generated from the underlying collateral.

Consumer – Includes loans to individuals not secured by real estate. Repayment is dependent upon the personal cash flow of the borrower.

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) provided for Paycheck Protection Program (“PPP”) loans made by banks to employers with less than 500 employees if they continued to employ their existing workers. The American Rescue Plan Act of 2021, which was signed into law on March 21, 2021, provides additional relief for businesses, states, municipalities and individuals by, among other things, allocating additional funds for the PPP. Effective May 28, 2021, the PPP was closed to new applications. The Company funded approximately 7,400 loans for a total amount of $1.5 billion for clients under the PPP since April 2020. At June 30, 2022 and December 31, 2021, unaccreted deferred loan origination fees, net of costs, related to PPP loans were $513,000 and $7.2 million, respectively. PPP loan origination fees recorded to interest income totaled $2.8 million and $8.0 million for the three months ended  June 30, 2022 and 2021, respectively, and totaled $7.2 million and $17.1 million for the six months ended June 30, 2022 and 2021, respectively. PPP loans outstanding totaled $23.0 million and $595.0 million at June 30, 2022 and December 31, 2021, respectively. PPP loans are included within the commercial, financial and agricultural loan category in the table below.

The following table details the Company’s loans at June 30, 2022 and December 31, 2021:

	June 30,			December 31,
	2022			2021
	(Dollars In Thousands)
Commercial, financial and agricultural	$	2,966,040		$	2,984,053
Real estate - construction		1,383,155			1,103,076
Real estate - mortgage:
Owner-occupied commercial		2,026,807			1,874,103
1-4 family mortgage		1,015,698			826,765
Other mortgage		3,160,510			2,678,084
Subtotal: Real estate - mortgage		6,203,015			5,378,952
Consumer		65,110			66,853
Total Loans		10,617,320			9,532,934
Less: Allowance for credit losses		(128,387	)		(116,660	)
Net Loans	$	10,488,933		$	9,416,274
Commercial, financial and agricultural		27.94	%		31.30	%
Real estate - construction		13.03	%		11.57	%
Real estate - mortgage:
Owner-occupied commercial		19.09	%		19.66	%
1-4 family mortgage		9.57	%		8.67	%
Other mortgage		29.77	%		28.10	%
Subtotal: Real estate - mortgage		58.42	%		56.42	%
Consumer		0.61	%		0.70	%
Total Loans		100.00	%		100.00	%

The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan credit portfolio segments and classes. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for current economic conditions defined as follows:

● Pass – loans which are well protected by the current net worth and paying capacity of the borrower (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

● Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

● Substandard – loans that exhibit well-defined weakness or weaknesses that currently jeopardize debt repayment. These loans are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected.

● Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

The table below presents loan balances classified by credit quality indicator, loan type and based on year of origination as of June 30, 2022 :

													Revolving
June 30, 2022	2022		2021		2020		2019		2018		Prior		Loans		Total
	(In thousands)
Commercial, financial and agricultural
Pass	$	295,183	$	671,693	$	257,345	$	227,787	$	164,947	$	514,106	$	748,747	$	2,880,087
Special Mention		100		6,717		1,276		2,277		3,444		4,950		21,344		40,108
Substandard		1		-		408		11,071		343		3,610		30,691		45,845
Doubtful		-		-		-		-		-		-		-		-
Total Commercial, financial and agricultural	$	295,284	$	678,410	$	259,029	$	241,135	$	168,734	$	522,666	$	800,782	$	2,966,040
Real estate - construction
Pass	$	237,946	$	600,567	$	226,083	$	17,895	$	8,644	$	29,479	$	257,920	$	1,378,534
Special Mention		2,500		-		-		-		-		894		-		3,394
Substandard		-		-		-		-		1,227		-		-		1,227
Doubtful		-		-		-		-		-		-		-		-
Total Real estate - construction	$	240,446	$	600,567	$	226,083	$	17,895	$	9,871	$	30,373	$	257,920	$	1,383,155
Owner-occupied commercial
Pass	$	174,174	$	426,742	$	257,264	$	159,595	$	148,669	$	386,045	$	455,962	$	2,010,500
Special Mention		291		1,625		-		2,382		633		5,500		1,777		12,208
Substandard		-		-		-		-		-		1,866		4,283		4,099
Doubtful		-		-		-		-		-		-		-		-
Total Owner-occupied commercial	$	174,465	$	428,367	$	257,264	$	161,977	$	149,302	$	393,411	$	462,022	$	2,026,807
1-4 family mortgage
Pass	$	210,144	$	246,092	$	76,469	$	40,022	$	24,584	$	76,334	$	333,600	$	1,007,245
Special Mention		101		1,503		839		161		-		585		2,695		5,884
Substandard		-		-		-		233		-		342		1,994		2,569
Doubtful		-		-		-		-		-		-		-		-
Total 1-4 family mortgage	$	210,245	$	247,595	$	77,308	$	40,416	$	24,584	$	77,261	$	338,289	$	1,015,698
Other mortgage
Pass	$	423,306	$	798,502	$	449,472	$	370,182	$	123,724	$	398,486	$	573,799	$	3,137,471
Special Mention		-		-		-		130		376		2,681		7,151		10,338
Substandard		-		-		-		-		4,449		928		7,324		12,701
Doubtful		-		-		-		-		-		-		-		-
Total Other mortgage	$	423,306	$	798,502	$	449,472	$	370,312	$	128,549	$	402,095	$	588,274	$	3,160,510
Consumer
Pass	$	5,857	$	7,083	$	2,982	$	1,862	$	402	$	22,535	$	24,370	$	65,091
Special Mention		-		-		-		-		-		19		-		19
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Consumer	$	5,857	$	7,083	$	2,982	$	1,862	$	402	$	22,554	$	24,370	$	65,110
Total Loans
Pass	$	1,346,610	$	2,750,679	$	1,269,615	$	817,343	$	470,970	$	1,426,985	$	2,393,868	$	10,478,928
Special Mention		2,992		9,845		2,115		4,950		4,453		14,629		32,967		71,951
Substandard		1		-		408		11,303		6,019		6,746		44,940		66,441
Doubtful		-		-		-		-		-		-		-		-
Total Loans	$	1,349,603	$	2,760,524	$	1,272,138	$	833,596	$	481,442	$	1,448,360	$	2,471,657	$	10,617,320

The table below presents loan balances classified by credit quality indicator, loan type and based on year of origination as of December 31, 2021:

													Revolving
December 31, 2021	2021		2020		2019		2018		2017		Prior		Loans		Total
	(In thousands)
Commercial, financial and agricultural
Pass	$	800,822	$	294,841	$	209,086	$	130,579	$	114,870	$	127,572	$	1,216,153	$	2,893,923
Special Mention		1,245		1,323		942		846		915		784		19,801		25,856
Substandard		-		387		10,039		1,741		1,501		7,966		42,640		64,274
Doubtful		-		-		-		-		-		-		-		-
Total Commercial, financial and agricultural	$	802,067	$	296,551	$	220,067	$	133,166	$	117,286	$	136,322	$	1,278,594	$	2,984,053
Real estate - construction
Pass	$	597,497	$	260,723	$	110,671	$	16,452	$	13,704	$	17,356	$	76,662	$	1,093,065
Special Mention		-		-		6,594		2,500		-		917		-		10,011
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Real estate - construction	$	597,497	$	260,723	$	117,265	$	18,952	$	13,704	$	18,273	$	76,662	$	1,103,076
Owner-occupied commercial
Pass	$	406,473	$	352,642	$	231,197	$	182,812	$	162,648	$	430,638	$	96,860	$	1,863,270
Special Mention		101		-		2,417		779		476		2,688		-		6,461
Substandard		-		-		-		-		-		4,372		-		4,372
Doubtful		-		-		-		-		-		-		-		-
Total Owner-occupied commercial	$	406,574	$	352,642	$	233,614	$	183,591	$	163,124	$	437,698	$	96,860	$	1,874,103
1-4 family mortgage
Pass	$	299,686	$	117,579	$	68,044	$	46,954	$	37,374	$	37,970	$	210,338	$	817,945
Special Mention		-		1,000		517		116		260		912		3,033		5,838
Substandard		-		150		593		241		231		611		1,156		2,982
Doubtful		-		-		-		-		-		-		-		-
Total 1-4 family mortgage	$	299,686	$	118,729	$	69,154	$	47,311	$	37,865	$	39,493	$	214,527	$	826,765
Other mortgage
Pass	$	882,849	$	481,012	$	411,426	$	174,700	$	272,555	$	353,621	$	81,202	$	2,657,365
Special Mention		-		-		130		376		2,720		4,656		-		7,882
Substandard		-		-		-		4,497		8,340		-		-		12,837
Doubtful		-		-		-		-		-		-		-		-
Total Other mortgage	$	882,849	$	481,012	$	411,556	$	179,573	$	283,615	$	358,277	$	81,202	$	2,678,084
Consumer
Pass	$	16,303	$	4,845	$	2,896	$	983	$	903	$	3,649	$	37,250	$	66,829
Special Mention		-		-		-		-		-		24		-		24
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Consumer	$	16,303	$	4,845	$	2,896	$	983	$	903	$	3,673	$	37,250	$	66,853
Total Loans
Pass	$	3,003,630	$	1,511,642	$	1,033,320	$	552,480	$	602,054	$	970,806	$	1,718,465	$	9,392,397
Special Mention		1,346		2,323		10,600		4,617		4,371		9,981		22,834		56,072
Substandard		-		537		10,632		6,479		10,072		12,949		43,796		84,465
Doubtful		-		-		-		-		-		-		-		-
Total Loans	$	3,004,976	$	1,514,502	$	1,054,552	$	563,576	$	616,497	$	993,736	$	1,785,095	$	9,532,934

Loans by performance status as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	2,960,589	$	5,451	$	2,966,040
Real estate - construction		1,383,155		-		1,383,155
Real estate - mortgage:
Owner-occupied commercial		2,023,628		3,179		2,026,807
1-4 family mortgage		1,014,336		1,362		1,015,698
Other mortgage		3,154,993		5,517		3,160,510
Total real estate mortgage		6,192,957		10,058		6,203,015
Consumer		65,088		22		65,110
Total	$	10,601,789	$	15,531	$	10,617,320

December 31, 2021	Performing		Nonperforming		Total
	(In Thousands)
Commercial, financial and agricultural	$	2,979,671	$	4,382	$	2,984,053
Real estate - construction		1,103,076		-		1,103,076
Real estate - mortgage:
Owner-occupied commercial		1,873,082		1,021		1,874,103
1-4 family mortgage		824,756		2,009		826,765
Other mortgage		2,673,428		4,656		2,678,084
Total real estate mortgage		5,371,266		7,686		5,378,952
Consumer		66,824		29		66,853
Total	$	9,520,837	$	12,097	$	9,532,934

Loans by past due status as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022	Past Due Status (Accruing Loans)
							Total Past		Total						Nonaccrual
	30-59 Days		60-89 Days		90+ Days		Due		Nonaccrual		Current		Total Loans		With no ACL
	(In Thousands)
Commercial, financial and agricultural	$	2,810	$	885	$	249	$	3,944	$	5,202	$	2,956,894	$	2,966,040	$	2,595
Real estate - construction		-		-		-		-		-		1,383,155		1,383,155		-
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		3,179		2,023,628		2,026,807		5,515
1-4 family mortgage		402		1,332		134		1,868		1,228		1,012,602		1,015,698		102
Other mortgage		376		-		4,586		4,962		931		3,154,617		3,160,510		-
Total real estate - mortgage		778		1,332		4,720		6,830		5,338		6,190,847		6,203,015		5,617
Consumer		53		27		22		102		-		65,008		65,110		-
Total	$	3,641	$	2,244	$	4,991	$	10,876	$	10,540	$	10,595,904	$	10,617,320	$	8,212

December 31, 2021	Past Due Status (Accruing Loans)
							Total Past		Total						Nonaccrual
	30-59 Days		60-89 Days		90+ Days		Due		Nonaccrual		Current		Total Loans		With no ACL
	(In Thousands)
Commercial, financial and agricultural	$	516	$	77	$	39	$	632	$	4,343	$	2,979,078	$	2,984,053	$	2,059
Real estate - construction		-		-		-		-		-		1,103,076		1,103,076		-
Real estate - mortgage:
Owner-occupied commercial		143		-		-		143		1,021		1,872,939		1,874,103		1,021
1-4 family mortgage		-		703		611		1,314		1,398		824,053		826,765		483
Other mortgage		-		-		4,656		4,656		-		2,673,428		2,678,084		-
Total real estate - mortgage		143		703		5,267		6,113		2,419		5,370,420		5,378,952		1,504
Consumer		93		23		29		145		-		66,708		66,853		-
Total	$	752	$	803	$	5,335	$	6,890	$	6,762	$	9,519,282	$	9,532,934	$	3,563

Under the current expected credit losses (“CECL”) methodology, the allowance for credit losses ("ACL") is measured on a collective basis for pools of loans with similar risk characteristics. For loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan segments collectively evaluated, losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period losses are reverted to long-term historical averages. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses.         

The Company uses the discounted cash flow (“DCF”) method to estimate ACL for all loan pools except for commercial and industrial ("C&I") revolving lines of credit and credit cards.  For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment rate as a loss driver. The Company also utilizes and forecasts GDP growth as a second loss driver for its agricultural and consumer loan pools.  Consistent forecasts of the loss drivers are used across the loan segments.  At June 30, 2022 and December 31, 2021, the Company utilized a reasonable and supportable forecast period of twelve months followed by a six-month straight-line reversion to long term averages.  The Company leveraged economic projections from reputable and independent sources to inform its loss driver forecasts.  The Company expects the national unemployment to rise during the forecast period with a declining national GDP growth rate compared to December 31, 2021.

The Company uses a loss-rate method to estimate expected credit losses for its C&I revolving lines of credit and credit card pools.  The C&I revolving lines of credit pool incorporates a probability of default (“PD”) and loss given default (“LGD”) modeling approach.  This approach involves estimating the pool average life and then using historical correlations of default and loss experience over time to calculate the lifetime PD and LGD.  These two inputs are then applied to the outstanding pool balance.  The credit card pool incorporates a remaining life modeling approach, which utilizes an attrition-based method to estimate the remaining life of the pool.  A quarterly average loss rate is then calculated using the Company’s historical loss data. The model reduces the pool balance quarterly on a straight-line basis over the estimated life of the pool. The quarterly loss rate is multiplied by the outstanding balance at each period-end resulting in an estimated loss for each quarter. The sum of estimated loss for all quarters is the total calculated reserve for the pool.  Management has applied the loss-rate method to C&I lines of credit and to credit cards due to their generally short-term nature.  An expected loss ratio is applied based on internal and peer historical losses.

Each loan pool is adjusted for qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation.  The Company considers factors that are relevant within the qualitative framework which include the following:  lending policy, changes in nature and volume of loans, staff experience, changes in volume and trends of problem loans, concentration risk, trends in underlying collateral values, external factors, quality of loan review system and other economic conditions.

Inherent risks in the loan portfolio will differ based on type of loan. Specific risk characteristics by loan portfolio segment are listed below:

Commercial, financial and agricultural loans include risks associated with the  borrower’s cash flow, debt service coverage, and management’s expertise.  These loans are subject to the risk that the Company may have difficulty converting collateral to a liquid asset if necessary, as well as risks associated with the  degree of specialization, mobility, and general collectability in a default situation. These commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates.

Real estate construction loans include risks associated with the borrower’s credit-worthiness, contractor’s qualifications, borrower and contractor performance, and the overall risk and complexity of the proposed project.  Construction lending is also subject to risks associated with sub-market dynamics, including population, employment trends and household income.  During times of economic stress, this type of loan has typically had a greater degree of risk than other loan types.  

Real estate mortgage loans consist of loans secured by commercial and residential real estate.  Commercial real estate lending is dependent upon successful management, marketing and expense supervision necessary to maintain the property.  Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy.  Also, commercial real estate loans typically involve relatively large loan balances to a single borrower.  Residential real estate lending risks are generally less significant than those of other loans.  Real estate lending risks include fluctuations in the value of real estate, bankruptcies, economic downturn and customer financial problems.

Consumer loans carry a moderate degree of risk compared to other loans.  They are generally more risky than traditional residential real estate loans but less risky than commercial loans.  Risk of default is usually determined by the well-being of the local economies.  During times of economic stress, there is usually some level of job loss both nationally and locally, which directly affects the ability of the consumer to repay debt.

The following table presents changes in the allowance for credit losses, segregated by loan type, for the three and six months ended June 30, 2022 and June 30, 2021.

	Commercial,
	financial and			Real estate -		Real estate -
	agricultural			construction		mortgage			Consumer			Total
	(In Thousands)
	Three Months Ended June 30, 2022
Allowance for credit losses:
Balance at March 1, 2022	$	41,417		$	27,821	$	48,548		$	1,677		$	119,463
Charge-offs		(1,666	)		-		(23	)		(124	)		(1,813	)
Recoveries		1,217			-		-			13			1,230
Provision		642			8,172		268			426			9,507
Balance at June 30, 2022	$	41,610		$	35,993	$	48,793		$	1,992		$	128,387

	Three Months Ended March June 30, 2021
Allowance for credit losses:
Balance at March 1, 2021	$	38,232		$	19,391	$	35,607		$	1,676		$	94,906
Charge-offs		(150	)		-		(59	)		(54	)		(263	)
Recoveries		298			2		62			13			375
Provision		4,053			3,020		2,920			(341	)		9,652
Balance at June 30, 2021	$	42,433		$	22,413	$	38,530		$	1,294		$	104,670

	Six Months Ended June 30, 2022
Allowance for credit losses:
Balance at January 1, 2022	$	41,869		$	26,994	$	45,829		$	1,968		$	116,660
Charge-offs		(4,240	)		-		(51	)		(199	)		(4,489	)
Recoveries		1,322			-		-			25			1,347
Provision		2,659			8,999		3,014			198			14,869
Balance at June 30, 2022	$	41,610		$	35,993	$	48,793		$	1,992		$	128,387

	Six Months Ended June 30, 2021
Allowance for credit losses:
Balance at January 1, 2021	$	36,370		$	16,057	$	33,722		$	1,793		$	87,942
Charge-offs		(627	)		-		(71	)		(141	)		(839	)
Recoveries		324			52		64			24			464
Provision		6,366			6,304		4,815			(382	)		17,103
Balance at June 30, 2021	$	42,433		$	22,413	$	38,530		$	1,294		$	104,670

We maintain an allowance for credit losses on unfunded lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheet within other liabilities, while the corresponding provision for these credit losses is recorded as a component of other expense. The allowance for credit losses on unfunded commitments was $1.6 million at June 30, 2022 and $1.3 million at December 31, 2021. The provision expense for unfunded commitments was $0 and $300,000 for the three and six months ended June 30, 2022, respectively, and was $600,000 and $1.1 million for the three and six months ended June 30, 2021, respectively.

Loans that no longer share similar risk characteristics with collectively evaluated pools are estimated on an individual basis. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows:

			Accounts								ACL
June 30, 2022	Real Estate		Receivable		Equipment		Other		Total		Allocation
	(In Thousands)
Commercial, financial and agricultural	$	12,330	$	5,174	$	3,246	$	25,094	$	45,844	$	8,264
Real estate - construction		-		-		-		1,227		1,227		96
Real estate - mortgage:
Owner-occupied commercial		4,100		-		-		-		4,100		1,837
1-4 family mortgage		3,226		-		-		-		3,226		231
Other mortgage		12,704		-		-		-		12,704		-
Total real estate - mortgage		20,030		-		-		-		20,030		2,068
Consumer		-		-		-		-		-		-
Total	$	32,360	$	5,174	$	3,246	$	26,321	$	67,101	$	10,428

			Accounts								ACL
December 31, 2021	Real Estate		Receivable		Equipment		Other		Total		Allocation
	(In Thousands)
Commercial, financial and agricultural	$	13,067	$	5,075	$	18,533	$	27,599	$	64,274	$	9,727
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		4,372		-		-		-		4,372		1,371
1-4 family mortgage		2,982		-		-		-		2,982		163
Other mortgage		12,837		-		-		-		12,837		31
Total real estate - mortgage		20,191		-		-		-		20,191		1,565
Consumer		-		-		-		-		-		-
Total	$	33,258	$	5,075	$	18,533	$	27,599	$	84,465	$	11,292

Troubled Debt Restructuring (“TDR”) at June 30, 2022, December 31, 2021 and June 30, 2021 totaled $‐‐2.4 million, $2.6 million and $2.9 million, respectively. The portion of those TDRs accruing interest at June 30, 2022, December 31, 2021 and June 30, 2021 totaled $421,000, $431,000 and $441,000, respectively. There were no modifications made to new TDRs or renewals of existing TDRs for the three and six months ended June 30, 2022. The following tables present loans modified in a TDR during three and six months ended June 30, 2021 by portfolio segment and the financial impact of those modifications. The tables include modifications made to new TDRs, as well as renewals of existing TDRs.

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(In Thousands)
Troubled Debt Restructurings
Commercial, financial and agricultural		2	$	1,155	$	1,155		2	$	1,155	$	1,155
Real estate - construction		-		-		-		-		-		-
Real estate - mortgage:
Owner-occupied commercial		1		991		991		1		991		991
1-4 family mortgage		-		-		-		-		-		-
Other mortgage		-		-		-		-		-		-
Total real estate mortgage		1		991		991		1		991		991
Consumer		-		-		-		-		-		-
		3	$	2,146	$	2,146		3	$	2,146	$	2,146

There were no loans which were modified in the previous twelve months (i.e., the twelve months prior to default) that defaulted during the three and six months ended  June 30, 2022 and June 30, 2021, respectively. For purposes of this disclosure, default is defined as 90 days past due and still accruing or placement on nonaccrual status.