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LOANS AND ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table.
December 31,
(dollars in thousands)20212020
Commercial, financial and agricultural$1,875,993 $1,627,477 
Consumer installment191,298 306,995 
Indirect automobile265,779 580,083 
Mortgage warehouse787,837 916,353 
Municipal572,701 659,403 
Premium finance798,409 687,841 
Real estate – construction and development1,452,339 1,606,710 
Real estate – commercial and farmland6,834,917 5,300,006 
Real estate – residential3,094,985 2,796,057 
 $15,874,258 $14,480,925 
Included in commercial, financial and agricultural loans at December 31, 2021 and 2020 above are $127.8 million and $827.4 million, respectively, related to PPP loans.
Nonaccrual and Past Due Loans

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged against interest income. Interest on loans that are classified as nonaccrual is subsequently applied to principal until the loans are returned to accrual status. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment, approved by the Company’s Chief Credit Officer. Past due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.

The following table presents an analysis of loans accounted for on a nonaccrual basis:
December 31,
(dollars in thousands)20212020
Commercial, financial and agricultural$14,214 $9,836 
Consumer installment476 709 
Indirect automobile947 2,831 
Real estate – construction and development492 5,407 
Real estate – commercial and farmland15,365 18,517 
Real estate – residential53,772 39,157 
 $85,266 $76,457 
There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021 and 2020.

The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:
(dollars in thousands)December 31,
2021		December 31,
2020
Commercial, financial and agricultural$164 $764 
Real estate – construction and development209 416 
Real estate – commercial and farmland2,061 7,015 
Real estate – residential7,942 5,299 
$10,376 $13,494 
The following tables present an analysis of past-due loans as of December 31, 2021 and 2020:
(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
December 31, 2021       
Commercial, financial and agricultural$3,431 $2,005 $12,017 $17,453 $1,858,540 $1,875,993 $1,165 
Consumer installment1,786 871 891 3,548 187,750 191,298 584 
Indirect automobile772 185 473 1,430 264,349 265,779 — 
Mortgage warehouse— — — — 787,837 787,837 — 
Municipal— — — — 572,701 572,701 — 
Premium finance6,992 4,340 9,134 20,466 777,943 798,409 9,134 
Real estate – construction and development16,601 1,398 2,190 20,189 1,432,150 1,452,339 1,758 
Real estate – commercial and farmland6,713 1,150 5,924 13,787 6,821,130 6,834,917 7 
Real estate – residential17,729 4,266 49,839 71,834 3,023,151 3,094,985 — 
Total$54,024 $14,215 $80,468 $148,707 $15,725,551 $15,874,258 $12,648 
(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
December 31, 2020       
Commercial, financial and agricultural$4,576 $2,018 $5,652 $12,246 $1,615,231 $1,627,477 $— 
Consumer installment2,189 1,114 2,318 5,621 301,374 306,995 1,755 
Indirect automobile3,293 1,006 2,171 6,470 573,613 580,083 — 
Mortgage warehouse— — — — 916,353 916,353 — 
Municipal— — — — 659,403 659,403 — 
Premium finance7,188 3,895 6,571 17,654 670,187 687,841 6,571 
Real estate – construction and development13,348 723 5,150 19,221 1,587,489 1,606,710 — 
Real estate – commercial and farmland5,370 1,701 8,651 15,722 5,284,284 5,300,006 — 
Real estate – residential20,519 3,125 34,081 57,725 2,738,332 2,796,057 — 
Total$56,483 $13,582 $64,594 $134,659 $14,346,266 $14,480,925 $8,326 

Collateral-Dependent Loans

Collateral-dependent loans are loans where repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. If the Company determines that foreclosure is probable, these loans are written down to the lower of cost or collateral value less estimated costs to sell. When repayment is expected to be from the operation of the collateral, the allowance for credit losses is calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. The Company may, in the alternative, measure the allowance for credit loss as the amount by which the amortized cost basis of the financial asset exceeded the estimated fair value of the collateral. As of December 31, 2021 and 2020, there were $52.1 million and $123.1 million, respectively, of collateral-dependent loans which are primarily secured by real estate, equipment and receivables.
The following table presents an analysis of collateral-dependent financial assets and related allowance for credit losses:
(dollars in thousands)December 31, 2021December 31, 2020
BalanceAllowance for Credit LossesBalanceAllowance for Credit Losses
Commercial, financial and agricultural$2,613 $723 $5,490 $2,252 
Premium finance2,989 30 3,523 — 
Real estate – construction and development1,432 45 4,173 512 
Real estate – commercial and farmland33,332 6,646 100,180 21,001 
Real estate – residential11,712 453 9,716 891 
$52,078 $7,897 $123,082 $24,656 
Credit Quality Indicators

The Company uses a nine category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:

Pass (Grades 1 - 5) – These grades represent acceptable credit risk to the Company based on factors including creditworthiness of the borrower, current performance and nature of the collateral.

Other Assets Especially Mentioned (Grade 6) – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard (Grade 7) – This grade represents loans which are inadequately protected by the current credit worthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Doubtful (Grade 8) – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Loss (Grade 9) – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

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. The Company had an immaterial amount of revolving loans which converted to term loans and the amortized cost basis of those loans is included in the applicable origination year. There were no loans risk graded 9 at December 31, 2021 and 2020.
Term Loans by Origination YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 2021
20212020201920182017Prior
Commercial, Financial and Agricultural
Risk Grade:
Pass$903,630 $279,037 $188,810 $118,613 $50,737 $40,376 $262,951 $1,844,154 
6190 — 393 427 368 1,832 1,961 5,171 
79,216 1,268 4,098 1,472 2,566 6,019 2,029 26,668 
Total commercial, financial and agricultural$913,036 $280,305 $193,301 $120,512 $53,671 $48,227 $266,941 $1,875,993 
Consumer Installment
Risk Grade:
Pass$35,781 $59,221 $37,195 $27,266 $9,787 $11,021 $9,437 $189,708 
6— — — — — 135 5 140 
759 283 290 216 103 405 94 1,450 
Total consumer installment$35,840 $59,504 $37,485 $27,482 $9,890 $11,561 $9,536 $191,298 
Indirect Automobile
Risk Grade:
Pass$— $— $20,276 $101,969 $90,294 $51,468 $— $264,007 
6— — — 24 10 19 — 53 
7— — 55 234 384 1,046 — 1,719 
Total indirect automobile$— $— $20,331 $102,227 $90,688 $52,533 $— $265,779 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $787,837 $787,837 
Total mortgage warehouse$— $— $— $— $— $— $787,837 $787,837 
Municipal
Risk Grade:
Pass$44,727 $219,385 $14,831 $5,494 $109,040 $179,224 $— $572,701 
Total municipal$44,727 $219,385 $14,831 $5,494 $109,040 $179,224 $— $572,701 
Premium Finance
Risk Grade:
Pass$787,884 $1,059 $26 $— $302 $4 $— $789,275 
79,039 95 — — — — — 9,134 
Total premium finance$796,923 $1,154 $26 $— $302 $4 $— $798,409 
Real Estate – Construction and Development
Risk Grade:
Pass$826,094 $290,814 $176,476 $35,773 $24,533 $44,514 $21,267 $1,419,471 
66,527 549 — 15,260 — 2,101 — 24,437 
71,143 678 7 2,476 57 1,011 3,059 8,431 
Total real estate – construction and development$833,764 $292,041 $176,483 $53,509 $24,590 $47,626 $24,326 $1,452,339 
Term Loans by Origination YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 2021
20212020201920182017Prior
Real Estate – Commercial and Farmland
Risk Grade:
Pass$2,186,291 $1,205,578 $1,119,239 $542,295 $486,477 $1,103,675 $80,379 $6,723,934 
6416 — 1,036 14,760 5,334 21,665 — 43,211 
74,709 2,682 11,109 9,076 4,861 35,315 20 67,772 
Total real estate – commercial and farmland$2,191,416 $1,208,260 $1,131,384 $566,131 $496,672 $1,160,655 $80,399 $6,834,917 
Real Estate - Residential
Risk Grade:
Pass$1,171,008 $638,232 $329,247 $149,990 $108,538 $408,240 $217,982 $3,023,237 
6145 66 1,106 505 356 3,717 49 5,944 
72,405 10,167 21,239 11,376 4,597 13,970 2,050 65,804 
Total real estate - residential$1,173,558 $648,465 $351,592 $161,871 $113,491 $425,927 $220,081 $3,094,985 
Total Loans
Risk Grade:
Pass$5,955,415 $2,693,326 $1,886,100 $981,400 $879,708 $1,838,522 $1,379,853 $15,614,324 
67,278 615 2,535 30,976 6,068 29,469 2,015 78,956 
726,571 15,173 36,798 24,850 12,568 57,766 7,252 180,978 
Total loans$5,989,264 $2,709,114 $1,925,433 $1,037,226 $898,344 $1,925,757 $1,389,120 $15,874,258 

Term Loans by Origination YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 2020
20202019201820172016Prior
Commercial, Financial and Agricultural
Risk Grade:
Pass$1,031,173 $134,604 $97,815 $64,573 $23,852 $38,744 $209,214 $1,599,975 
621 72 506 193 3,509 1,232 632 6,165 
73,312 3,460 2,579 3,573 1,294 5,214 1,886 21,318 
8— — — — — — 19 19 
Total commercial, financial and agricultural$1,034,506 $138,136 $100,900 $68,339 $28,655 $45,190 $211,751 $1,627,477 
Consumer Installment
Risk Grade:
Pass$142,803 $63,681 $57,644 $17,831 $4,674 $10,344 $8,662 $305,639 
6— 2 9 — — 145 — 156 
730 209 72 105 134 553 97 1,200 
Total consumer installment$142,833 $63,892 $57,725 $17,936 $4,808 $11,042 $8,759 $306,995 
Term Loans by Origination YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 2020
20202019201820172016Prior
Indirect Automobile
Risk Grade:
Pass$— $35,432 $187,737 $188,333 $108,926 $55,835 $— $576,263 
6— — 57 70 62 85 — 274 
7— 163 519 561 1,078 1,225 — 3,546 
Total indirect automobile$— $35,595 $188,313 $188,964 $110,066 $57,145 $— $580,083 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $916,353 $916,353 
Total mortgage warehouse$— $— $— $— $— $— $916,353 $916,353 
Municipal
Risk Grade:
Pass$236,076 $13,398 $8,944 $149,194 $141,543 $110,248 $— $659,403 
Total municipal$236,076 $13,398 $8,944 $149,194 $141,543 $110,248 $— $659,403 
Premium Finance
Risk Grade:
Pass$661,614 $18,236 $515 $746 $121 $38 $— $681,270 
75,811 760 — — — — — 6,571 
Total premium finance$667,425 $18,996 $515 $746 $121 $38 $— $687,841 
Real Estate – Construction and Development
Risk Grade:
Pass$666,193 $479,251 $221,926 $71,488 $35,799 $43,958 $69,974 $1,588,589 
6685 1,036 3,646 1,302 — 4,564 — 11,233 
715 2,858 566 271 42 3,136 — 6,888 
Total real estate – construction and development$666,893 $483,145 $226,138 $73,061 $35,841 $51,658 $69,974 $1,606,710 
Real Estate – Commercial and Farmland
Risk Grade:
Pass$1,275,225 $995,273 $636,687 $611,823 $497,221 $925,534 $103,805 $5,045,568 
6— 10,680 4,895 28,139 7,670 31,224 — 82,608 
7250 54,439 18,574 15,489 27,044 55,763 271 171,830 
Total real estate – commercial and farmland$1,275,475 $1,060,392 $660,156 $655,451 $531,935 $1,012,521 $104,076 $5,300,006 
Real Estate - Residential
Risk Grade:
Pass$782,834 $551,308 $273,917 $201,738 $170,951 $502,823 $252,787 $2,736,358 
6527 1,843 1,030 334 724 3,391 255 8,104 
73,442 9,387 12,339 4,667 2,157 16,659 2,944 51,595 
Total real estate - residential$786,803 $562,538 $287,286 $206,739 $173,832 $522,873 $255,986 $2,796,057 
Term Loans by Origination YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 2020
20202019201820172016Prior
Total Loans
Risk Grade:
Pass$4,795,918 $2,291,183 $1,485,185 $1,305,726 $983,087 $1,687,524 $1,560,795 $14,109,418 
61,233 13,633 10,143 30,038 11,965 40,641 887 108,540 
712,860 71,276 34,649 24,666 31,749 82,550 5,198 262,948 
8— — — — — — 19 19 
Total loans$4,810,011 $2,376,092 $1,529,977 $1,360,430 $1,026,801 $1,810,715 $1,566,899 $14,480,925 

Troubled Debt Restructurings

The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The Company has exhibited the greatest success for rehabilitation of the loan by a reduction in the rate alone (maintaining the amortization of the debt) or a combination of a rate reduction and the forbearance of previously past due interest or principal. This has most typically been evidenced in certain commercial real estate loans whereby a disruption in the borrower’s cash flow resulted in an extended past due status, of which the borrower was unable to catch up completely as the cash flow of the property ultimately stabilized at a level lower than its original level. A reduction in rate, coupled with a forbearance of unpaid principal and/or interest, allowed the net cash flows to service the debt under the modified terms.

The Company’s policy requires a restructure request to be supported by a current, well-documented credit evaluation of the borrower’s financial condition and a collateral evaluation that is no older than six months from the date of the restructure. Key factors of that evaluation include the documentation of current, recurring cash flows, support provided by the guarantor(s) and the current valuation of the collateral. If the appraisal in file is older than six months, an evaluation must be made as to the continued reasonableness of the valuation. For certain income-producing properties, current rent rolls and/or other income information can be utilized to support the appraisal valuation, when coupled with documented cap rates within our markets and a physical inspection of the collateral to validate the current condition.

The Company’s policy states in the event a loan has been identified as a troubled debt restructuring, it should be assigned a grade of substandard until such time that the borrower has demonstrated the ability to service the loan payments based on the restructured terms – generally defined as six months of satisfactory payment history. Missed payments under the original loan terms are not considered under the new structure; however, subsequent missed payments are considered non-performance and are not considered toward the six month required term of satisfactory payment history.

In the normal course of business, the Company renews loans with a modification of the interest rate or terms that are not deemed as troubled debt restructurings because the borrower is not experiencing financial difficulty. The Company modified loans in 2021 and 2020 totaling $408.9 million and $436.0 million, respectively, under such parameters. These totals do not include modifications under our disaster relief program discussed under the heading "COVID-19 Deferrals" below.

As of December 31, 2021 and 2020, the Company had a balance of $76.6 million and $85.0 million, respectively, in troubled debt restructurings. The Company has recorded $654,000 and $1.2 million in previous charge-offs on such loans at December 31, 2021 and 2020, respectively. The Company’s balance in the allowance for credit losses allocated to such troubled debt restructurings was $10.5 million and $13.0 million at December 31, 2021 and 2020, respectively. At December 31, 2021, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.

During the year ending December 31, 2021 and 2020, the Company modified loans as troubled debt restructurings, with principal balances of $19.7 million and $49.4 million, respectively, and these modifications did not have a material impact on the Company's allowance for credit losses. These modifications do not include modifications for which the Company applied the temporary relief under Section 4013 of the CARES Act.
The following table presents the loans by class modified as troubled debt restructurings, which occurred during the year ending December 31, 2021 and 2020.
December 31, 2021December 31, 2020
Loan Class#
Balance
(in thousands)
#
Balance
(in thousands)
Commercial, financial and agricultural4$401 7$855 
Consumer installment27 515 
Indirect automobile—— 4882,738 
Real estate – construction and development—— 117 
Real estate – commercial and farmland516,197 1431,630 
Real estate – residential233,056 5514,126 
Total34$19,661 570$49,381 

Troubled debt restructurings with an outstanding balance of $2.3 million and $4.4 million defaulted during the year ended December 31, 2021 and 2020, respectively, and these defaults did not have a material impact on the Company’s allowance for credit losses. The following table presents the troubled debt restructurings by class that defaulted (defined as 30 days past due) during the year ending December 31, 2021 and 2020.
December 31, 2021December 31, 2020
Loan Class#
Balance
(in thousands)
#
Balance
(in thousands)
Commercial, financial and agricultural4$35 1$2 
Consumer installment25 42 
Indirect automobile1975 —— 
Real estate – construction and development—— 3689 
Real estate – commercial and farmland—— 4929 
Real estate – residential212,177 222,756 
Total46$2,292 34$4,378 

The following tables present the amount of troubled debt restructurings by loan class classified separately as accrual and non-accrual at December 31, 2021 and 2020.
As of December 31, 2021Accruing LoansNon-Accruing Loans
Loan Class#
Balance
(in thousands)
#
Balance
(in thousands)
Commercial, financial and agricultural12$1,286 6$83 
Consumer installment716 1735 
Indirect automobile2331,037 52273 
Real estate – construction and development4789 113 
Real estate – commercial and farmland2535,575 55,924 
Real estate – residential21326,879 394,678 
Total494$65,582 120$11,006 
As of December 31, 2020Accruing LoansNon-Accruing Loans
Loan Class#
Balance
(in thousands)
#
Balance
(in thousands)
Commercial, financial and agricultural9$521 11$849 
Consumer installment1032 2056 
Indirect automobile4372,277 51461 
Real estate – construction and development4506 5707 
Real estate – commercial and farmland2836,707 71,401 
Real estate – residential26438,800 342,671 
Total752$78,843 128$6,145 
COVID-19 Deferrals

In response to the COVID-19 pandemic, the Company offered affected borrowers payment relief under its Disaster Relief Program. These modifications primarily consisted of short-term payment deferrals or interest-only periods to assist customers. The Company has begun providing payment modifications to certain borrowers in economically sensitive industries of various terms up to nine months. Modifications related to the COVID-19 pandemic and qualifying under the provisions of Section 4013 of the CARES Act are not deemed to be troubled debt restructurings. As of December 31, 2021 and 2020, $41.7 million and $332.8 million, respectively, in loans remained in payment deferral related to the COVID-19 pandemic Disaster Relief Program.

The table below presents short-term deferrals related to the COVID-19 pandemic that were not considered TDRs.
December 31,
20212020
(dollars in thousands)COVID-19 DeferralsDeferrals as a % of total loansCOVID-19 DeferralsDeferrals as a % of total loans
Commercial, financial and agricultural$1,430 0.1 %$12,471 0.8 %
Consumer installment— — %1,418 0.5 %
Indirect automobile— — %8,936 1.5 %
Real estate – construction and development— — %11,049 0.7 %
Real estate – commercial and farmland1,899 — %179,183 3.4 %
Real estate – residential38,396 1.2 %119,722 4.3 %
$41,725 0.3 %$332,779 2.3 %

Related Party Loans

In the ordinary course of business, the Company has granted loans to certain executive officers, directors and their affiliates. These loans are made on substantially the same terms as those prevailing at the time for comparable transaction and do not involve more than normal credit risk. Changes in related party loans are summarized as follows:
December 31,
(dollars in thousands)20212020
Balance, January 1$69,395 $36,468 
Advances15,212 34,132 
Repayments(25,393)(1,205)
Ending balance$59,214 $69,395 

Allowance for Credit Losses

The allowance for credit losses represents an allowance for expected losses over the remaining contractual life of the assets adjusted for prepayments. The contractual term does not consider extensions, renewals or modifications unless the Company reasonably expects to execute a troubled debt restructuring with a borrower. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged off in accordance with the Federal Financial Institutions Examination Council’s (“FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent and foreclosure is probable, the loss is more easily identified and is charged off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of 9 (Loss per the regulatory guidance), the uncollectible portion is charged off.

The allowance for credit losses was determined at December 31, 2021 using a weighting of five economic forecasts from Moody's. The Moody's baseline scenario was weighted at 10%, the downside 75th percentile S-2 scenario was weighted at
10%, the downside 90th percentile S-3 scenario was weighted at 50%, the slower trend growth scenario was weighted at 20% and the stagflation scenario was weighted 10%. During the year ended December 31, 2021, the allowance for credit losses decreased primarily due to improvement in forecasted economic conditions compared with December 31, 2020. The current forecast reflects, among other things, improvements in forecast levels of home prices, commercial real estate prices and unemployment compared with the forecast at December 31, 2020.

During the year ended December 31, 2020, the Company sold $87.5 million of selected hotel loans from its commercial real estate portfolio. This sale resulted in charge offs of $17.2 million and a loss on sale of loans of $386,000. The Company designated a portfolio of consumer installment loans, totaling $165.9 million at December 31, 2020, as held for sale during the third and fourth quarters of 2020. The transfer to held for sale resulted in $1.6 million in charge offs and a provision release of approximately $6.7 million.

The following table details activity in the allowance for credit losses by portfolio segment for the periods indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(dollars in thousands)Commercial,
Financial and
Agricultural		Consumer
Installment		Indirect AutomobileMortgage WarehouseMunicipalPremium Finance
Balance, December 31, 2020$7,359 $4,076 $1,929 $3,666 $791 $3,879 
Initial allowance for PCD assets9,432 — — — — — 
Provision for loan losses12,071 7,330 (1,944)(435)(390)(2,352)
Loans charged off(7,760)(6,248)(1,188)— — (3,668)
Recoveries of loans previously charged off5,727 939 1,679 — — 4,870 
Balance, December 31, 2021$26,829 $6,097 $476 $3,231 $401 $2,729 
Real Estate – Construction and DevelopmentReal Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, December 31, 2020$45,304 $88,894 $43,524 $199,422 
Initial allowance for PCD assets— — — 9,432 
Provision for loan losses(23,532)(9,784)(16,045)(35,081)
Loans charged off(233)(1,852)(667)(21,616)
Recoveries of loans previously charged off506 573 1,131 15,425 
Balance, December 31, 2021$22,045 $77,831 $27,943 $167,582 
(dollars in thousands)Commercial,
Financial and
Agricultural		Consumer
Installment		Indirect AutomobileMortgage WarehouseMunicipalPremium Finance
Twelve months ended
December 31, 2020
Balance, January 1, 2020
$4,567 $3,784 $— $640 $484 $2,550 
Adjustment to allowance for adoption of ASU 2016-132,587 8,012 4,109 463 (92)4,471 
Provision for loan losses8,963 (3,831)(235)2,563 399 (198)
Loans charged off(10,647)(5,642)(3,602)— — (6,133)
Recoveries of loans previously charged off1,889 1,753 1,657 — — 3,189 
Balance, December 31, 2020$7,359 $4,076 $1,929 $3,666 $791 $3,879 
Real Estate – Construction and DevelopmentReal Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Twelve months ended
December 31, 2020
Balance, January 1, 2020
$5,995 $9,666 $10,503 $38,189 
Adjustment to allowance for adoption of ASU 2016-1312,248 27,073 19,790 78,661 
Provision for loan losses26,327 78,210 13,290 125,488 
Loans charged off(83)(27,504)(853)(54,464)
Recoveries of loans previously charged off817 1,449 794 11,548 
Balance, December 31, 2020$45,304 $88,894 $43,524 $199,422 
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 AutomobileMortgage WarehouseMunicipalPremium Finance
Twelve months ended
December 31, 2019
Balance, January 1, 2019
$2,352 $3,795 $— $640 $509 $1,426 
Provision for loan losses3,837 4,268 1,459 — (25)2,721 
Loans charged off(3,460)(5,899)(1,904)— — (4,351)
Recoveries of loans previously charged off1,838 1,620 445 — — 2,754 
Balance, December 31, 2019$4,567 $3,784 $— $640 $484 $2,550 
Period-end allocation:      
Loans individually evaluated for impairment (1)
$1,543 $— $— $— $— $758 
Loans collectively evaluated for impairment3,024 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 impairment789,252 498,363 1,056,811 526,369 564,304 647,901 
Acquired with deteriorated credit quality4,887 214 5,013 — — — 
Ending balance$802,171 $498,577 $1,061,824 $526,369 $564,304 $654,669 
Real Estate – Construction and DevelopmentReal Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Twelve months ended
December 31, 2019
Balance, January 1, 2019
$4,210 $9,659 $6,228 $28,819 
Provision for loan losses454 3,017 4,027 19,758 
Loans charged off(414)(3,342)(491)(19,861)
Recoveries of loans previously charged off1,745 332 739 9,473 
Balance, December 31, 2019$5,995 $9,666 $10,503 $38,189 
Period-end allocation:
Loans individually evaluated for impairment (1)
$204 $953 $3,704 $7,162 
Loans collectively evaluated for impairment5,791 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 impairment1,532,786 4,256,397 2,737,095 12,609,278 
Acquired with deteriorated credit quality14,671 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.
Purchased Credit Deteriorated Loans

The Company acquired $952,000 in PCD loans from Balboa during the year ended December 31, 2021. A reconciliation of the purchase price to the par value, or unpaid principal balance ("UPB"), of the assets is below.

(dollars in thousands)Commercial, Financial and Agricultural
Par value (UPB)$10,505 
Allowance for Credit Losses(9,432)
Discount(121)
Purchase Price$952