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LOANS (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Accounts Notes Loans and Financial Receivables

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:


(dollars in thousands)	March 31, 2020		December 31, 2019
Commercial, financial and agricultural	$	827,392	$	802,171
Consumer installment	520,592		498,577
Indirect automobile	937,736		1,061,824
Mortgage warehouse	547,328		526,369
Municipal	749,633		564,304
Premium finance	661,845		654,669
Real estate – construction and development	1,628,367		1,549,062
Real estate – commercial and farmland	4,516,451		4,353,039
Real estate – residential	2,704,762		2,808,461
	$	13,094,106	$	12,818,476

Schedule of Changes in Accretable Discounts Related Acquired Loans

The following is a summary of changes in the accretable discounts of purchased loans during the three months ended March 31, 2019:


(dollars in thousands)	March 31, 2019
Balance, January 1	$	40,496
Additions due to acquisitions	—
Accretion	(2,980)
Accretable discounts removed due to charge-offs	—
Transfers between non-accretable and accretable discounts, net	(1,869)
Ending balance	$	35,647

Summary of Financial Receivable Nonaccrual Basis

The following table presents an analysis of loans accounted for on a nonaccrual basis:


(dollars in thousands)	March 31, 2020		December 31, 2019
Commercial, financial and agricultural	$	10,457	$	9,236
Consumer installment	897		831
Indirect automobile	1,732		1,746


Premium finance	579		600
Real estate – construction and development	2,437		1,988
Real estate – commercial and farmland	26,575		23,797
Real estate – residential	35,189		36,926
	$	77,866	$	75,124

There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2020.

The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:


(dollars in thousands)	March 31, 2020







Real estate – commercial and farmland	$	610
Real estate – residential	2,772
	$	3,382

Summary of Past Due Financial Receivables

The following table presents an analysis of past-due loans as of March 31, 2020 and December 31, 2019:


(dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
March 31, 2020
Commercial, financial and agricultural	$	5,511	$	1,510	$	6,211	$	13,232	$	814,160	$	827,392	$	—
Consumer installment	3,784		1,432		1,416		6,632		513,960		520,592		856
Indirect automobile	4,698		712		1,462		6,872		930,864		937,736		10
Mortgage warehouse	—		—		—		—		547,328		547,328		—
Municipal	—		—		—		—		749,633		749,633		—
Premium finance	9,066		2,031		11,665		22,762		639,083		661,845		11,086
Real estate – construction and development	9,363		655		2,390		12,408		1,615,959		1,628,367		—
Real estate – commercial and farmland	19,944		2,500		18,699		41,143		4,475,308		4,516,451		—
Real estate – residential	34,179		9,939		30,691		74,809		2,629,953		2,704,762		22
Total	$	86,545	$	18,779	$	72,534	$	177,858	$	12,916,248	$	13,094,106	$	11,974

December 31, 2019
Commercial, financial and agricultural	$	3,609	$	2,251	$	6,484	$	12,344	$	789,827	$	802,171	$	—
Consumer installment	3,488		1,336		1,452		6,276		492,301		498,577		922
Indirect automobile	5,978		1,067		1,522		8,567		1,053,257		1,061,824		21
Mortgage warehouse	—		—		—		—		526,369		526,369		—
Municipal	—		—		—		—		564,304		564,304		—
Premium finance	13,801		8,022		5,411		27,234		627,435		654,669		4,811
Real estate – construction and development	7,785		1,224		1,583		10,592		1,538,470		1,549,062		—
Real estate – commercial and farmland	7,404		3,405		15,598		26,407		4,326,632		4,353,039		—
Real estate – residential	46,226		15,277		31,083		92,586		2,715,875		2,808,461		—
Total	$	88,291	$	32,582	$	63,133	$	184,006	$	12,634,470	$	12,818,476	$	5,754

Collateral-Dependent Loans

Collateral-dependent loans are loans where repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. These loans are written down to the lower of cost or collateral value less estimated selling costs. As of March 31, 2020, there were $70.0 million of collateral-dependent loans which are primarily secured by real estate, equipment and receivables.

Summary of Impaired Financial Receivables

The following is a summary of information pertaining to impaired loans:


	As of and for the Period Ended
(dollars in thousands)	December 31, 2019		March 31, 2019
Nonaccrual loans	$	75,124	$	41,879
Troubled debt restructurings not included above	29,609		30,906
Total impaired loans	$	104,733	$	72,785

Quarter-to-date interest income recognized on impaired loans	$	1,201	$	854

Quarter-to-date foregone interest income on impaired loans	$	1,044	$	729

The following table presents an analysis of information pertaining to impaired loans as of December 31, 2019 and March 31, 2019:


(dollars in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three Month Average Recorded Investment
December 31, 2019
Commercial, financial and agricultural	$	18,438	$	1,911	$	7,840	$	9,751	$	1,542	$	9,073
Consumer installment	2,179		839		—		839		—		420
Indirect automobile	1,845		1,746		—		1,746		—		1,481


Premium finance	757		—		757		757		156		758
Real estate – construction and development	4,893		1,319		1,605		2,924		204		5,277
Real estate – commercial and farmland	42,515		12,147		18,381		30,528		953		30,749
Real estate – residential	62,675		13,413		44,775		58,188		3,592		70,723
Total	$	133,302	$	31,375	$	73,358	$	104,733	$	6,447	$	118,481


(dollars in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three Month Average Recorded Investment
March 31, 2019
Commercial, financial and agricultural	$	12,886	$	3,666	$	1,687	$	5,353	$	180	$	4,126
Consumer installment	1,133		1,031		—		1,030		—		1,031




Real estate – construction and development	15,022		1,226		7,103		8,329		706		8,250
Real estate – commercial and farmland	20,514		2,209		15,406		17,615		1,248		18,414
Real estate – residential	42,918		15,715		24,742		40,458		1,341		39,634
Total	$	92,473	$	23,847	$	48,938	$	72,785	$	3,475	$	71,455

Summary of Credit Quality Indicate Financial Receivable

The following table presents the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands). Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the table below. There were no loans risk graded 9 at March 31, 2020.


	Term Loans
As of March 31, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
Commercial, Financial and Agricultural
Risk Grade:
1	$	1,492	$	4,751	$	2,019	$	771	$	696	$	5,647	$	8,098	$	—	$	23,474
2	38		1,413		957		6,503		117		2,409		6,413		—		17,850
3	29,139		66,134		22,793		18,347		10,487		6,613		78,883		—		232,396
4	17,656		99,490		104,684		60,227		25,697		30,166		112,462		—		450,382
5	7,082		14,084		12,095		11,354		3,017		11,995		16,199		—		75,826
6	—		390		1,530		649		270		1,269		1,845		—		5,953
7	—		333		1,158		2,599		711		3,738		12,733		—		21,272
8	—		239		—		—		—		—		—		—		239

Total commercial, financial and agricultural loans	$	55,407	$	186,834	$	145,236	$	100,450	$	40,995	$	61,837	$	236,633	$	—	$	827,392
Consumer Installment
Risk Grade:
1	$	1,973	$	6,918	$	2,697	$	1,065	$	200	$	112	$	624	$	—	$	13,589
2	—		5		86		3		—		96		43		—		233
3	5,623		12,432		5,632		2,162		2,016		954		3,735		—		32,554
4	68,942		139,741		145,674		81,547		21,034		11,078		4,104		—		472,120
5	10		58		20		69		91		385		9		—		642
6	—		15		14		5		51		81		—		—		166
7	—		193		143		175		213		452		112		—		1,288


Total consumer installment	$	76,548	$	159,362	$	154,266	$	85,026	$	23,605	$	13,158	$	8,627	$	—	$	520,592
Indirect Automobile
Risk Grade:

2	$	—	$	—	$	141	$	40	$	9,226	$	6,177	$	—	$	—	$	15,584
3	—		50,064		269,735		291,917		175,293		129,460		—		—		916,469
4	—		996		—		—		—		—		—		—		996


7	—		35		473		711		1,594		1,874		—		—		4,687


Total indirect automobile	$	—	$	51,095	$	270,349	$	292,668	$	186,113	$	137,511	$	—	$	—	$	937,736
Mortgage Warehouse
Risk Grade:


3	$	—	$	—	$	—	$	—	$	—	$	—	$	547,328	$	—	$	547,328






Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	547,328	$	—	$	547,328


	Term Loans
As of March 31, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
Municipal
Risk Grade:
1	$	199,851	$	12,806	$	36,333	$	178,779	$	176,282	$	133,614	$	—	$	—	$	737,665
2	—		—		—		—		—		2,639		—		—		2,639
3	—		806		—		6,300		—		1,627		—		—		8,733
4	—		—		—		—		—		596		—		—		596





Total municipal	$	199,851	$	13,612	$	36,333	$	185,079	$	176,282	$	138,476	$	—	$	—	$	749,633
Premium Finance
Risk Grade:

2	$	324,711	$	320,085	$	2,751	$	1,352	$	321	$	960	$	—	$	—	$	650,180




7	—		7,990		113		—		3,466		96		—		—		11,665


Total premium finance	$	324,711	$	328,075	$	2,864	$	1,352	$	3,787	$	1,056	$	—	$	—	$	661,845
Real Estate – Construction and Development
Risk Grade:

2	$	—	$	—	$	—	$	—	$	—	$	22	$	—	$	—	$	22
3	29,824		83,506		24,815		7,930		4,192		10,450		1,487		—		162,204
4	94,621		638,391		302,673		102,194		13,439		38,513		88,208		—		1,278,039
5	17		36,633		45,990		16,283		22,066		17,361		24,323		—		162,673
6	—		3,889		7,595		2,805		761		4,719		115		—		19,884
7	—		607		354		642		103		3,715		124		—		5,545


Total real estate – construction and development	$	124,462	$	763,026	$	381,427	$	129,854	$	40,561	$	74,780	$	114,257	$	—	$	1,628,367
Real Estate – Commercial and Farmland
Risk Grade:
1	$	—	$	—	$	204	$	—	$	—	$	—	$	—	$	—	$	204
2	842		574		579		2,248		5,310		17,267		1,998		—		28,818
3	120,521		397,469		173,358		232,985		218,717		341,457		64,639		—		1,549,146
4	66,287		421,177		370,277		280,928		231,586		538,615		31,941		—		1,940,811
5	46,316		125,732		103,005		177,642		152,518		246,543		3,410		—		855,166
6	—		7,793		8,615		8,363		13,160		33,336		355		—		71,622
7	1,117		1,242		3,073		5,507		11,038		48,232		475		—		70,684


Total real estate – commercial and farmland	$	235,083	$	953,987	$	659,111	$	707,673	$	632,329	$	1,225,450	$	102,818	$	—	$	4,516,451


	Term Loans
As of March 31, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
Real Estate - Residential
Risk Grade:
1	$	—	$	—	$	—	$	—	$	—	$	25	$	—	$	—	$	25
2	—		428		32		130		1,686		66,302		1,869		—		70,447
3	130,436		560,981		355,435		267,876		215,327		551,033		240,959		1,956		2,324,003
4	8,257		22,733		26,359		14,195		14,311		71,260		53,612		61		210,788
5	101		3,671		2,340		4,482		5,142		15,730		5,354		—		36,820
6	—		1,295		894		200		335		5,438		1,097		—		9,259
7	323		8,321		7,001		8,083		3,475		19,624		6,593		—		53,420


Total real estate - residential	$	139,117	$	597,429	$	392,061	$	294,966	$	240,276	$	729,412	$	309,484	$	2,017	$	2,704,762

The following table presents the loan portfolio by risk grade as of December 31, 2019 (in thousands):


Risk Grade	Commercial, Financial and Agricultural		Consumer Installment		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance		Real Estate - Construction and Development		Real Estate - Commercial and Farmland		Real Estate - Residential		Total
1	$	22,396	$	13,184	$	—	$	—	$	552,062	$	—	$	—	$	208	$	27	$	587,877
2	18,937		1,233		18,354		—		2,690		654,069		17,535		35,299		92,255		840,372
3	215,180		33,314		1,033,861		526,369		8,925		—		90,124		1,720,039		2,406,587		6,034,399
4	482,146		449,224		4,009		—		627		—		1,377,674		2,348,083		222,779		4,884,542
5	33,317		208		—		—		—		—		41,759		133,119		24,618		233,021
6	4,901		213		—		—		—		—		17,223		53,941		10,132		86,410
7	25,294		1,191		5,600		—		—		600		4,747		62,350		52,063		151,845
8	—		8		—		—		—		—		—		—		—		8
9	—		2		—		—		—		—		—		—		—		2
Total	$	802,171	$	498,577	$	1,061,824	$	526,369	$	564,304	$	654,669	$	1,549,062	$	4,353,039	$	2,808,461	$	12,818,476

Summary of Troubled Debt Restructurings by Loan Class

The following table presents the loans by class modified as troubled debt restructurings which occurred during the three months ended March 31, 2020 and 2019:


	March 31, 2020				March 31, 2019
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	—	$	—	1	$	7
Consumer installment	1	9		6	45




Real estate – construction and development	—	—		—	—
Real estate – commercial and farmland	1	64		1	33
Real estate – residential	8	903		17	2,849
Total	10	$	976	25	$	2,934

Troubled Debt Restructurings on Financing Receivable Payment Default

The following table presents for loans the troubled debt restructurings by class that defaulted (defined as 30 days past due) during the three months ended March 31, 2020 and 2019:


	March 31, 2020				March 31, 2019
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	1	$	200	1	$	3
Consumer installment	—	—		2	28




Real estate – construction and development	2	287		—	—
Real estate – commercial and farmland	2	681		1	163
Real estate – residential	19	1,800		15	1,474
Total	24	$	2,968	19	$	1,668

Summary of Troubled Debt Restructuring by Loan Class, Classified Separately under Restructured Terms

The following table presents the amount of troubled debt restructurings by loan class classified separately as accrual and nonaccrual at March 31, 2020 and December 31, 2019:


March 31, 2020	Accruing Loans				Non-Accruing Loans
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	5	$	575	15	$	334
Consumer installment	4	4		27	105



Premium finance	1	159		—	—
Real estate – construction and development	5	925		4	289
Real estate – commercial and farmland	19	5,587		9	2,415
Real estate – residential	212	22,775		39	3,078
Total	246	$	30,025	94	$	6,221


December 31, 2019	Accruing Loans				Non-Accruing Loans
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	5	$	516	17	$	335
Consumer installment	4	8		27	107



Premium finance	1	156		—	—
Real estate – construction and development	6	936		3	253
Real estate – commercial and farmland	21	6,732		8	2,071
Real estate – residential	197	21,261		40	2,857
Total	234	$	29,609	95	$	5,623

Schedule of Allowances for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for credit losses by portfolio segment for the three-month periods ended March 31, 2020 and March 31, 2019 and end of period balances by portfolio segment as of March 31, 2020, December 31, 2019 and March 31, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


Three Months Ended March 31, 2020

(dollars in thousands)	Commercial, Financial and Agricultural		Consumer Installment		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, December 31, 2019	$	4,567	$	3,784	$	—	$	640	$	484	$	2,550
Adjustment to allowance for adoption of ASU 2016-13	2,587		8,012		4,109		463		(92)		4,471

Provision for loan losses	3,080		4,149		564		(1)		130		4,634
Loans charged off	(2,486)		(1,142)		(1,231)		—		—		(831)
Recoveries of loans previously charged off	362		643		22		—		—		684
Balance, March 31, 2020	$	8,110	$	15,446	$	3,464	$	1,102	$	522	$	11,508

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2019	$	5,995	$	9,666	$	10,503	$	38,189
Adjustment to allowance for adoption of ASU 2016-13	12,248		27,073		19,790		78,661

Provision for loan losses	6,734		15,858		1,899		37,047
Loans charged off	—		(928)		(100)		(6,718)
Recoveries of loans previously charged off	342		85		207		2,345
Balance, March 31, 2020	$	25,319	$	51,754	$	32,299	$	149,524

Prior to the adoption of ASC 326 on January 1, 2020, the Company calculated the allowance for loan losses under the incurred loss methodology. The following tables are disclosures related to the allowance for loan losses in prior periods.


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer Installment		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance






December 31, 2019
Period-end allocation:
Loans individually evaluated for impairment⁽¹⁾	$	1,543	$	—	$	—	$	—	$	—	$	758
Loans collectively evaluated for impairment	3,024		3,784		—		640		484		1,792
Ending balance	$	4,567	$	3,784	$	—	$	640	$	484	$	2,550

Loans:
Individually evaluated for impairment ⁽¹⁾	$	8,032	$	—	$	—	$	—	$	—	$	6,768
Collectively evaluated for impairment	789,252		498,363		1,056,811		526,369		564,304		647,901
Acquired with deteriorated credit quality	4,887		214		5,013		—		—		—
Ending balance	$	802,171	$	498,577	$	1,061,824	$	526,369	$	564,304	$	654,669

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total






December 31, 2019
Period-end allocation:
Loans individually evaluated for impairment⁽¹⁾	$	204	$	953	$	3,704	$	7,162
Loans collectively evaluated for impairment	5,791		8,713		6,799		31,027
Ending balance	$	5,995	$	9,666	$	10,503	$	38,189

Loans:
Individually evaluated for impairment ⁽¹⁾	$	1,605	$	19,759	$	46,311	$	82,475
Collectively evaluated for impairment	1,532,786		4,256,397		2,737,095		12,609,278
Acquired with deteriorated credit quality	14,671		76,883		25,055		126,723
Ending balance	$	1,549,062	$	4,353,039	$	2,808,461	$	12,818,476

(1) At December 31, 2019, loans individually evaluated for impairment includes all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000, including all troubled debt restructurings and not only those currently classified as troubled debt restructurings.


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer Installment		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Three Months Ended March 31, 2019
Balance, December 31, 2018	$	2,352	$	3,795	$	—	$	640	$	509	$	1,426
Provision for loan losses	300		1,823		—		—		(1)		714
Loans charged off	(684)		(1,897)		—		—		—		(1,320)
Recoveries of loans previously charged off	222		215		—		—		—		1,010
Balance, March 31, 2019	$	2,190	$	3,936	$	—	$	640	$	508	$	1,830








Period-end allocation:
Loans individually evaluated for impairment⁽¹⁾	$	180	$	—	$	—	$	—	$	—	$	500
Loans collectively evaluated for impairment	2,010		3,936		—		640		508		1,330
Ending balance	$	2,190	$	3,936	$	—	$	640	$	508	$	1,830

Loans:
Individually evaluated for impairment ⁽¹⁾	$	1,687	$	—	$	—	$	—	$	—	$	2,106
Collectively evaluated for impairment	627,690		462,976		—		296,372		591,302		485,874
Acquired with deteriorated credit quality	2,220		129		—		—		—		—
Ending balance	$	631,597	$	463,105	$	—	$	296,372	$	591,302	$	487,980

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Three Months Ended March 31, 2019
Balance, December 31, 2018	$	4,210	$	9,659	$	6,228	$	28,819
Provision for loan losses	122		792		(342)		3,408
Loans charged off	(25)		(1,254)		(199)		(5,379)
Recoveries of loans previously charged off	117		40		207		1,811
Balance, March 31, 2019	$	4,424	$	9,237	$	5,894	$	28,659








Period-end allocation:
Loans individually evaluated for impairment (1)	$	706	$	1,248	$	1,342	$	3,976
Loans collectively evaluated for impairment	3,718		7,989		4,552		24,683
Ending balance	$	4,424	$	9,237	$	5,894	$	28,659

Loans:
Individually evaluated for impairment (1)	$	7,103	$	15,406	$	24,912	$	51,214
Collectively evaluated for impairment	901,586		3,106,929		1,876,367		8,349,096
Acquired with deteriorated credit quality	7,287		53,117		19,276		82,029
Ending balance	$	915,976	$	3,175,452	$	1,920,555	$	8,482,339

(1) At March 31, 2019, loans individually evaluated for impairment includes all nonaccrual loans greater than $100,000 and all troubled debt restructurings greater than $100,000, including all troubled debt restructurings and not only those currently classified as troubled debt restructurings.