LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

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, 2023		December 31, 2022
Commercial, financial and agricultural	$	2,722,180	$	2,679,403
Consumer	349,775		384,037
Indirect automobile	83,466		108,648
Mortgage warehouse	958,418		1,038,924
Municipal	505,515		509,151
Premium finance	947,257		1,023,479
Real estate – construction and development	2,144,605		2,086,438
Real estate – commercial and farmland	7,721,732		7,604,867
Real estate – residential	4,564,923		4,420,306
	$	19,997,871	$	19,855,253

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, 2023		December 31, 2022
Commercial, financial and agricultural	$	11,583	$	11,094
Consumer	400		420
Indirect automobile	285		346
Real estate – construction and development	548		523
Real estate – commercial and farmland	14,416		13,203
Real estate – residential(1)	115,795		109,222
	$	143,027	$	134,808

(1) Included in real estate - residential were $75.0 million and $69.6 million of serviced GNMA-guaranteed nonaccrual loans at March 31, 2023 and December 31, 2022, respectively.

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

(dollars in thousands)	March 31, 2023		December 31, 2022
Commercial, financial and agricultural	$	1,452	$	33
Real estate – commercial and farmland	2,510		1,464
Real estate – residential	67,535		58,734
	$	71,497	$	60,231

Summary of Past Due Financial Receivables

The following table presents an analysis of past-due loans as of March 31, 2023 and December 31, 2022:

(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, 2023
Commercial, financial and agricultural	$	12,302	$	5,307	$	13,381	$	30,990	$	2,691,190	$	2,722,180	$	3,969
Consumer	5,314		2,835		632		8,781		340,994		349,775		409
Indirect automobile	190		122		157		469		82,997		83,466
Mortgage warehouse	—		—		—		—		958,418		958,418		—
Municipal	—		—		—		—		505,515		505,515		—
Premium finance	9,922		6,102		11,414		27,438		919,819		947,257		11,414
Real estate – construction and development	1,727		—		463		2,190		2,142,415		2,144,605		—
Real estate – commercial and farmland	6,723		5,801		10,887		23,411		7,698,321		7,721,732		—
Real estate – residential	33,775		9,199		111,706		154,680		4,410,243		4,564,923		—
Total	$	69,953	$	29,366	$	148,640	$	247,959	$	19,749,912	$	19,997,871	$	15,792
December 31, 2022
Commercial, financial and agricultural	$	16,219	$	5,451	$	11,632	$	33,302	$	2,646,101	$	2,679,403	$	3,267
Consumer	2,539		3,163		741		6,443		377,594		384,037		472
Indirect automobile	466		77		267		810		107,838		108,648		—
Mortgage warehouse	—		—		—		—		1,038,924		1,038,924		—
Municipal	—		—		—		—		509,151		509,151		—
Premium finance	13,859		10,620		13,626		38,105		985,374		1,023,479		13,626
Real estate – construction and development	25,367		3,829		966		30,162		2,056,276		2,086,438		500
Real estate – commercial and farmland	1,738		168		10,223		12,129		7,592,738		7,604,867		—
Real estate – residential	35,015		11,329		106,170		152,514		4,267,792		4,420,306		—
Total	$	95,203	$	34,637	$	143,625	$	273,465	$	19,581,788	$	19,855,253	$	17,865

Analysis of Individually Evaluated Collateral-Dependent Financial Assets and Related Allowance for Credit Losses

The following table presents an analysis of individually evaluated collateral-dependent financial assets and related allowance for credit losses:

	March 31, 2023				December 31, 2022
(dollars in thousands)	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial, financial and agricultural	$	8,451	$	5,740	$	7,128	$	6,294
Mortgage warehouse	16,500		—		—		—
Premium finance	694		—		3,233		—
Real estate – construction and development	280		23		780		13
Real estate – commercial and farmland	12,554		1,104		15,168		1,428
Real estate – residential	18,683		2,093		15,464		2,066
	$	57,162	$	8,960	$	41,773	$	9,801

Summary of Credit Quality Indicate Financial Receivable

The following tables present the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands) as of March 31, 2023 and December 31, 2022. Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the tables 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 8 or 9 at March 31, 2023 or December 31, 2022.

As of March 31, 2023	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2023		2022		2021		2020		2019		Prior				Total
Commercial, Financial and Agricultural
Risk Grade:
Pass	$	334,129	$	988,365	$	485,629	$	154,912	$	95,530	$	84,470	$	556,049	$	2,699,084
6	—		89		67		194		173		2,145		363		3,031
7	5,683		1,736		2,806		1,196		3,576		2,973		2,095		20,065
Total commercial, financial and agricultural	$	339,812	$	990,190	$	488,502	$	156,302	$	99,279	$	89,588	$	558,507	$	2,722,180
Current-period gross charge offs	150		7,226		3,457		597		368		410		25		12,233
Consumer
Risk Grade:
Pass	$	23,767	$	27,439	$	10,479	$	34,256	$	21,350	$	28,171	$	202,965	$	348,427
6	—		25		—		2		—		95		197		319
7	—		83		30		203		152		439		122		1,029
Total consumer	$	23,767	$	27,547	$	10,509	$	34,461	$	21,502	$	28,705	$	203,284	$	349,775
Current-period gross charge offs	—		71		44		416		147		405		57		1,140
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	10,128	$	72,628	$	—	$	82,756
6	—		—		—		—		—		8		—		8
7	—		—		—		—		38		664		—		702
Total indirect automobile	$	—	$	—	$	—	$	—	$	10,166	$	73,300	$	—	$	83,466
Current-period gross charge offs	—		—		—		—		—		34		—		34
Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	882,183	$	882,183
6	—		—		—		—		—		—		57,578		57,578
7	—		—		—		—		—		—		18,657		18,657
Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	958,418	$	958,418
Current-period gross charge offs	—		—		—		—		—		—		—		—
Municipal
Risk Grade:
Pass	$	2,544	$	18,003	$	53,717	$	186,274	$	8,749	$	236,228	$	—	$	505,515
Total municipal	$	2,544	$	18,003	$	53,717	$	186,274	$	8,749	$	236,228	$	—	$	505,515
Current-period gross charge offs	—		—		—		—		—		—		—		—
Premium Finance
Risk Grade:
Pass	$	423,901	$	505,791	$	6,145	$	6	$	—	$	—	$	—	$	935,843
7	20		11,336		58		—		—		—		—		11,414
Total premium finance	$	423,921	$	517,127	$	6,203	$	6	$	—	$	—	$	—	$	947,257
Current-period gross charge offs	—		1,154		267		—		—		—		—		1,421

As of March 31, 2023	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2023		2022		2021		2020		2019		Prior				Total
Real Estate – Construction and Development
Risk Grade:
Pass	$	81,481	$	900,977	$	757,046	$	263,122	$	67,158	$	37,665	$	24,214	$	2,131,663
6	—		—		—		—		—		632		—		632
7	—		274		285		164		5		11,582		—		12,310
Total real estate – construction and development	$	81,481	$	901,251	$	757,331	$	263,286	$	67,163	$	49,879	$	24,214	$	2,144,605
Current-period gross charge offs	—		—		—		—		—		—		—		—
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	172,639	$	1,812,054	$	1,967,480	$	1,073,741	$	858,980	$	1,649,014	$	95,182	$	7,629,090
6	—		—		—		—		30,335		20,073		—		50,408
7	—		423		2,423		3,056		11,758		24,574		—		42,234
Total real estate – commercial and farmland	$	172,639	$	1,812,477	$	1,969,903	$	1,076,797	$	901,073	$	1,693,661	$	95,182	$	7,721,732
Current-period gross charge offs	—		—		—		—		—		—		—		—
Real Estate - Residential
Risk Grade:
Pass	$	208,784	$	1,498,532	$	1,198,924	$	539,228	$	262,709	$	491,267	$	240,227	$	4,439,671
6	—		235		144		268		745		2,597		378		4,367
7	109		10,186		24,809		28,094		26,597		29,405		1,685		120,885
Total real estate - residential	$	208,893	$	1,508,953	$	1,223,877	$	567,590	$	290,051	$	523,269	$	242,290	$	4,564,923
Current-period gross charge offs	24		—		—		—		—		100		4		128
Total Loans
Risk Grade:
Pass	$	1,247,245	$	5,751,161	$	4,479,420	$	2,251,539	$	1,324,604	$	2,599,443	$	2,000,820	$	19,654,232
6	—		349		211		464		31,253		25,550		58,516		116,343
7	5,812		24,038		30,411		32,713		42,126		69,637		22,559		227,296
Total loans	$	1,253,057	$	5,775,548	$	4,510,042	$	2,284,716	$	1,397,983	$	2,694,630	$	2,081,895	$	19,997,871
Total current-period gross charge offs	174		8,451		3,768		1,013		515		949		86		14,956

As of December 31, 2022	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2022		2021		2020		2019		2018		Prior				Total
Commercial, Financial and Agricultural
Risk Grade:
Pass	$	1,127,120	$	526,043	$	174,120	$	109,091	$	56,657	$	41,612	$	621,784	$	2,656,427
6	—		13		94		183		895		1,774		317		3,276
7	8,565		1,214		1,182		3,314		545		2,759		2,121		19,700
Total commercial, financial and agricultural	$	1,135,685	$	527,270	$	175,396	$	112,588	$	58,097	$	46,145	$	624,222	$	2,679,403
Consumer
Risk Grade:
Pass	$	41,487	$	12,692	$	37,906	$	23,454	$	17,144	$	13,825	$	236,113	$	382,621
6	38		—		—		—		—		98		196		332
7	68		62		216		106		118		431		83		1,084
Total consumer	$	41,593	$	12,754	$	38,122	$	23,560	$	17,262	$	14,354	$	236,392	$	384,037
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	—	$	11,900	$	50,749	$	45,120	$	—	$	107,769
6	—		—		—		—		—		11		—		11
7	—		—		—		41		149		678		—		868
Total indirect automobile	$	—	$	—	$	—	$	11,941	$	50,898	$	45,809	$	—	$	108,648
Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	990,106	$	990,106
6	—		—		—		—		—		—		22,831		22,831
7	—		—		—		—		—		—		25,987		25,987
Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	1,038,924	$	1,038,924
Municipal
Risk Grade:
Pass	$	18,074	$	46,809	$	188,507	$	9,752	$	4,358	$	241,651	$	—	$	509,151
Total municipal	$	18,074	$	46,809	$	188,507	$	9,752	$	4,358	$	241,651	$	—	$	509,151
Premium Finance
Risk Grade:
Pass	$	1,000,214	$	9,667	$	12	$	—	$	—	$	—	$	—	$	1,009,893
7	13,051		535		—		—		—		—		—		13,586
Total premium finance	$	1,013,265	$	10,202	$	12	$	—	$	—	$	—	$	—	$	1,023,479
Real Estate – Construction and Development
Risk Grade:
Pass	$	834,831	$	793,723	$	306,084	$	69,596	$	7,934	$	31,490	$	27,474	$	2,071,132
6	277		—		—		—		173		165		—		615
7	—		783		164		5		13,159		580		—		14,691
Total real estate – construction and development	$	835,108	$	794,506	$	306,248	$	69,601	$	21,266	$	32,235	$	27,474	$	2,086,438

As of December 31, 2022	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2022		2021		2020		2019		2018		Prior				Total
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	1,739,021	$	1,975,003	$	1,085,086	$	869,116	$	447,311	$	1,259,763	$	110,848	$	7,486,148
6	607		17,974		—		30,841		4,801		18,289		—		72,512
7	387		2,810		3,078		12,007		6,527		21,398		—		46,207
Total real estate – commercial and farmland	$	1,740,015	$	1,995,787	$	1,088,164	$	911,964	$	458,639	$	1,299,450	$	110,848	$	7,604,867
Real Estate - Residential
Risk Grade:
Pass	$	1,524,021	$	1,214,724	$	548,968	$	268,821	$	115,693	$	393,570	$	234,684	$	4,300,481
6	236		145		94		688		364		2,910		600		5,037
7	6,735		21,283		25,860		27,173		14,396		17,665		1,676		114,788
Total real estate - residential	$	1,530,992	$	1,236,152	$	574,922	$	296,682	$	130,453	$	414,145	$	236,960	$	4,420,306
Total Loans
Risk Grade:
Pass	$	6,284,768	$	4,578,661	$	2,340,683	$	1,361,730	$	699,846	$	2,027,031	$	2,221,009	$	19,513,728
6	1,158		18,132		188		31,712		6,233		23,247		23,944		104,614
7	28,806		26,687		30,500		42,646		34,894		43,511		29,867		236,911
Total loans	$	6,314,732	$	4,623,480	$	2,371,371	$	1,436,088	$	740,973	$	2,093,789	$	2,274,820	$	19,855,253

Schedule of Allowances for Loan Losses by Portfolio Segment

The following tables detail activity and end of period balances 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.

Three Months Ended March 31, 2023
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, December 31, 2022	$	39,455	$	5,413	$	174	$	2,118	$	357	$	1,025
Adjustment to allowance for adoption of ASU 2022-02	(105)		—		—		—		—		—
Provision for loan losses	16,078		323		(219)		(194)		(3)		(93)
Loans charged off	(12,233)		(1,140)		(34)		—		—		(1,421)
Recoveries of loans previously charged off	2,043		297		216		—		—		1,382
Balance, March 31, 2023	$	45,238	$	4,893	$	137	$	1,924	$	354	$	893
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2022	$	32,659	$	67,433	$	57,043	$	205,677
Adjustment to allowance for adoption of ASU 2022-02	(37)		(722)		(847)		(1,711)
Provision for loan losses	10,119		20,369		2,996		49,376
Loans charged off	—		—		(128)		(14,956)
Recoveries of loans previously charged off	100		44		190		4,272
Balance, March 31, 2023	$	42,841	$	87,124	$	59,254	$	242,658

Three Months Ended March 31, 2022
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, December 31, 2021	$	26,829	$	6,097	$	476	$	3,231	$	401	$	2,729
Provision for loan losses	215		789		(290)		(221)		(17)		(92)
Loans charged off	(4,414)		(1,425)		(88)		—		—		(1,369)
Recoveries of loans previously charged off	2,896		158		275		—		—		1,247
Balance, March 31, 2022	$	25,526	$	5,619	$	373	$	3,010	$	384	$	2,515
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2021	$	22,045	$	77,831	$	27,943	$	167,582
Provision for loan losses	4,568		(9,552)		1,866		(2,734)
Loans charged off	—		(1,283)		—		(8,579)
Recoveries of loans previously charged off	218		37		151		4,982
Balance, March 31, 2022	$	26,831	$	67,033	$	29,960	$	161,251

Schedule of Financing Receivable, Loan Modification

The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

(dollars in thousands)	Payment Deferral		Total		Percentage of Total Class of Financial Receivable
Commercial, financial and agricultural	$	843	$	843	—	%
Total	$	843	$	843	—	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Payment Deferral
Loan Type	Financial Effect
Commercial, financial and agricultural	Payments were reduced approximately 32% for three months before returning to a fully amortizing payment structure thereafter.

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due
Commercial, financial and agricultural	$	843	$	—	$	—	$	—
Total	$	843	$	—	$	—	$	—