LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	2,718,831	$	2,679,403
Consumer	307,486		384,037
Indirect automobile	63,231		108,648
Mortgage warehouse	1,147,413		1,038,924
Municipal	510,410		509,151
Premium finance	988,731		1,023,479
Real estate – construction and development	2,217,744		2,086,438
Real estate – commercial and farmland	7,815,779		7,604,867
Real estate – residential	4,702,134		4,420,306
	$	20,471,759	$	19,855,253

Schedule of Financial Receivable Nonaccrual Basis

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

(dollars in thousands)	June 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	8,774	$	11,094
Consumer	235		420
Indirect automobile	318		346
Real estate – construction and development	447		523
Real estate – commercial and farmland	10,657		13,203
Real estate – residential(1)	106,249		109,222
	$	126,680	$	134,808

(1) Included in real estate - residential were $69.7 million and $69.6 million of serviced GNMA-guaranteed nonaccrual loans at June 30, 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)	June 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	1,344	$	33
Real estate – commercial and farmland	7,997		1,464
Real estate – residential	61,573		58,734
	$	70,914	$	60,231

Schedule of Past Due Financial Receivables

The following table presents an analysis of past-due loans as of June 30, 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
June 30, 2023
Commercial, financial and agricultural	$	12,380	$	5,976	$	10,370	$	28,726	$	2,690,105	$	2,718,831	$	4,385
Consumer	5,111		815		435		6,361		301,125		307,486		331
Indirect automobile	138		49		136		323		62,908		63,231		—
Mortgage warehouse	—		—		—		—		1,147,413		1,147,413		—
Municipal	—		—		—		—		510,410		510,410		—
Premium finance	6,795		9,087		8,387		24,269		964,462		988,731		8,387
Real estate – construction and development	1,061		19		764		1,844		2,215,900		2,217,744		321
Real estate – commercial and farmland	2,782		2,883		7,755		13,420		7,802,359		7,815,779		—
Real estate – residential	31,604		12,691		102,664		146,959		4,555,175		4,702,134		—
Total	$	59,871	$	31,520	$	130,511	$	221,902	$	20,249,857	$	20,471,759	$	13,424
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

Schedule of 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:

	June 30, 2023				December 31, 2022
(dollars in thousands)	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial, financial and agricultural	$	3,941	$	670	$	7,128	$	6,294
Mortgage warehouse	—		—		—		—
Premium finance	736		—		3,233		—
Real estate – construction and development	601		94		780		13
Real estate – commercial and farmland	9,139		286		15,168		1,428
Real estate – residential	18,437		4,902		15,464		2,066
	$	32,854	$	5,952	$	41,773	$	9,801

Schedule 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 June 30, 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 June 30, 2023 or December 31, 2022.

As of June 30, 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	$	546,295	$	919,283	$	454,312	$	133,061	$	79,731	$	67,945	$	496,253	$	2,696,880
6	25		608		75		118		163		2,301		913		4,203
7	3,548		2,233		2,561		1,185		3,079		2,895		2,247		17,748
Total commercial, financial and agricultural	$	549,868	$	922,124	$	456,948	$	134,364	$	82,973	$	73,141	$	499,413	$	2,718,831
Current-period gross charge offs	978		12,715		7,700		961		610		2,560		25		25,549
Consumer
Risk Grade:
Pass	$	29,695	$	23,736	$	8,734	$	31,252	$	19,417	$	25,483	$	167,962	$	306,279
6	—		7		—		1		—		93		198		299
7	12		111		39		99		98		463		86		908
Total consumer	$	29,707	$	23,854	$	8,773	$	31,352	$	19,515	$	26,039	$	168,246	$	307,486
Current-period gross charge offs	2		222		50		1,076		671		968		203		3,192
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	8,614	$	54,028	$	—	$	62,642
6	—		—		—		—		—		2		—		2
7	—		—		—		—		35		552		—		587
Total indirect automobile	$	—	$	—	$	—	$	—	$	8,649	$	54,582	$	—	$	63,231
Current-period gross charge offs	—		—		—		—		—		99		—		99
Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	1,064,769	$	1,064,769
6	—		—		—		—		—		—		82,644		82,644
7	—		—		—		—		—		—		—		—
Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	1,147,413	$	1,147,413
Current-period gross charge offs	—		—		—		—		—		—		—		—
Municipal
Risk Grade:
Pass	$	2,569	$	25,452	$	54,458	$	184,799	$	15,112	$	228,020	$	—	$	510,410
Total municipal	$	2,569	$	25,452	$	54,458	$	184,799	$	15,112	$	228,020	$	—	$	510,410
Current-period gross charge offs	—		—		—		—		—		—		—		—
Premium Finance
Risk Grade:
Pass	$	797,510	$	178,702	$	4,132	$	—	$	—	$	—	$	—	$	980,344
7	1,621		6,766		—		—		—		—		—		8,387
Total premium finance	$	799,131	$	185,468	$	4,132	$	—	$	—	$	—	$	—	$	988,731
Current-period gross charge offs	4		2,955		310		—		—		—		—		3,269

As of June 30, 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	$	218,089	$	841,086	$	792,121	$	191,193	$	48,648	$	35,502	$	75,878	$	2,202,517
6	—		—		—		—		—		517		—		517
7	—		592		304		164		—		13,650		—		14,710
Total real estate – construction and development	$	218,089	$	841,678	$	792,425	$	191,357	$	48,648	$	49,669	$	75,878	$	2,217,744
Current-period gross charge offs	—		—		—		—		—		—		—		—
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	351,788	$	1,807,366	$	1,926,491	$	1,148,117	$	813,499	$	1,556,760	$	99,724	$	7,703,745
6	—		348		—		1,232		30,476		46,854		500		79,410
7	—		198		449		2,651		4,398		24,928		—		32,624
Total real estate – commercial and farmland	$	351,788	$	1,807,912	$	1,926,940	$	1,152,000	$	848,373	$	1,628,542	$	100,224	$	7,815,779
Current-period gross charge offs	—		—		—		—		3,151		169		—		3,320
Real Estate - Residential
Risk Grade:
Pass	$	451,392	$	1,462,604	$	1,181,824	$	525,870	$	253,419	$	466,163	$	245,958	$	4,587,230
6	—		233		142		266		676		2,406		237		3,960
7	809		14,196		21,021		25,900		20,687		26,533		1,798		110,944
Total real estate - residential	$	452,201	$	1,477,033	$	1,202,987	$	552,036	$	274,782	$	495,102	$	247,993	$	4,702,134
Current-period gross charge offs	24		—		9		—		—		105		59		197
Total Loans
Risk Grade:
Pass	$	2,397,338	$	5,258,229	$	4,422,072	$	2,214,292	$	1,238,440	$	2,433,901	$	2,150,544	$	20,114,816
6	25		1,196		217		1,617		31,315		52,173		84,492		171,035
7	5,990		24,096		24,374		29,999		28,297		69,021		4,131		185,908
Total loans	$	2,403,353	$	5,283,521	$	4,446,663	$	2,245,908	$	1,298,052	$	2,555,095	$	2,239,167	$	20,471,759
Total current-period gross charge offs	1,008		15,892		8,069		2,037		4,432		3,901		287		35,626

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 June 30, 2023
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, March 31, 2023	$	45,238	$	4,893	$	137	$	1,924	$	354	$	893
Provision for loan losses	15,322		1,513		(199)		411		3		51
Loans charged off	(13,316)		(2,052)		(65)		—		—		(1,848)
Recoveries of loans previously charged off	3,545		194		225		—		—		1,680
Balance, June 30, 2023	$	50,789	$	4,548	$	98	$	2,335	$	357	$	776
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, March 31, 2023	$	42,841	$	87,124	$	59,254	$	242,658
Provision for loan losses	11,276		12,275		2,991		43,643
Loans charged off	—		(3,320)		(69)		(20,670)
Recoveries of loans previously charged off	472		61		263		6,440
Balance, June 30, 2023	$	54,589	$	96,140	$	62,439	$	272,071
Six Months Ended June 30, 2023
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer Installment		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	31,400		1,836		(418)		217		—		(42)
Loans charged off	(25,549)		(3,192)		(99)		—		—		(3,269)
Recoveries of loans previously charged off	5,588		491		441		—		—		3,062
Balance, June 30, 2023	$	50,789	$	4,548	$	98	$	2,335	$	357	$	776
	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	21,395		32,644		5,987		93,019
Loans charged off	—		(3,320)		(197)		(35,626)
Recoveries of loans previously charged off	572		105		453		10,712
Balance, June 30, 2023	$	54,589	$	96,140	$	62,439	$	272,071

Three Months Ended June 30, 2022
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, March 31, 2022	$	25,526	$	5,619	$	373	$	3,010	$	384	$	2,515
Provision for loan losses	1,738		557		(306)		875		(13)		200
Loans charged off	(4,391)		(1,137)		(41)		—		—		(1,066)
Recoveries of loans previously charged off	2,785		230		265		—		—		1,113
Balance, June 30, 2022	$	25,658	$	5,269	$	291	$	3,885	$	371	$	2,762
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, March 31, 2022	$	26,831	$	67,033	$	29,960	$	161,251
Provision for loan losses	(3,954)		(7,647)		21,777		13,227
Loans charged off	—		(81)		(137)		(6,853)
Recoveries of loans previously charged off	355		44		225		5,017
Balance, June 30, 2022	$	23,232	$	59,349	$	51,825	$	172,642
Six Months Ended June 30, 2022
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer Installment		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	1,953		1,346		(596)		654		(30)		108
Loans charged off	(8,805)		(2,562)		(129)		—		—		(2,435)
Recoveries of loans previously charged off	5,681		388		540		—		—		2,360
Balance, June 30, 2022	$	25,658	$	5,269	$	291	$	3,885	$	371	$	2,762
	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	614		(17,199)		23,643		10,493
Loans charged off	—		(1,364)		(137)		(15,432)
Recoveries of loans previously charged off	573		81		376		9,999
Balance, June 30, 2022	$	23,232	$	59,349	$	51,825	$	172,642

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		Term Extension		Total		Percentage of Total Class of Financial Receivable
Commercial, financial and agricultural	$	1,207	$	1,997	$	3,204	0.1	%
Real estate – construction and development	—		286		286		—	%
Real estate – commercial and farmland	—		1,206		1,206		—	%
Total	$	1,207	$	3,489	$	4,696	—	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023:

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.
Commercial, financial and agricultural	Payments were reduced approximately 73% for four months before requiring full repayment.

Term Extension
Loan Type	Financial Effect
Commercial, financial and agricultural	Maturity dates were extended for an average of 10.5 months.
Real estate – construction and development	Maturity date was extended for 11 months.
Real estate – commercial and farmland	Maturity dates were extended for an average of 10.5 months.

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		Total
Commercial, financial and agricultural	$	2,707	$	497	$	—	$	—	$	3,204
Real estate – construction and development	286		—		—		—		286
Real estate – commercial and farmland	706		500		—		—		1,206
Total	$	3,699	$	997	$	—	$	—	$	4,696

The following table provides the amortized cost basis of financing receivables that had a payment default during both the three and six months ended June 30, 2023 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)	Term Extension
Commercial, financial and agricultural	$	497
Real estate – commercial and farmland	500
Total	$	997