LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 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)	September 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	2,632,836	$	2,679,403
Consumer	259,797		384,037
Indirect automobile	47,108		108,648
Mortgage warehouse	852,823		1,038,924
Municipal	497,093		509,151
Premium finance	1,007,334		1,023,479
Real estate – construction and development	2,236,686		2,086,438
Real estate – commercial and farmland	7,865,389		7,604,867
Real estate – residential	4,802,013		4,420,306
	$	20,201,079	$	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)	September 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	7,558	$	11,094
Consumer	888		420
Indirect automobile	290		346
Real estate – construction and development	282		523
Real estate – commercial and farmland	8,063		13,203
Real estate – residential(1)	117,477		109,222
	$	134,558	$	134,808

(1) Included in real estate - residential were $80.8 million and $69.6 million of serviced GNMA-guaranteed nonaccrual loans at September 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)	September 30, 2023		December 31, 2022
Commercial, financial and agricultural	$	677	$	33
Consumer	285		—
Real estate – commercial and farmland	4,133		1,464
Real estate – residential	69,178		58,734
	$	74,273	$	60,231

Schedule of Past Due Financial Receivables

The following table presents an analysis of past-due loans as of September 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
September 30, 2023
Commercial, financial and agricultural	$	12,774	$	5,438	$	7,064	$	25,276	$	2,607,560	$	2,632,836	$	4,765
Consumer	2,290		804		625		3,719		256,078		259,797		—
Indirect automobile	131		41		97		269		46,839		47,108		—
Mortgage warehouse	—		—		—		—		852,823		852,823		—
Municipal	—		—		—		—		497,093		497,093		—
Premium finance	9,648		5,260		7,126		22,034		985,300		1,007,334		7,126
Real estate – construction and development	892		370		280		1,542		2,235,144		2,236,686		—
Real estate – commercial and farmland	5,358		7,128		931		13,417		7,851,972		7,865,389		—
Real estate – residential	39,413		16,926		114,039		170,378		4,631,635		4,802,013		—
Total	$	70,506	$	35,967	$	130,162	$	236,635	$	19,964,444	$	20,201,079	$	11,891
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:

	September 30, 2023				December 31, 2022
(dollars in thousands)	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial, financial and agricultural	$	7,398	$	2,160	$	7,128	$	6,294
Premium finance	—		—		3,233		—
Real estate – construction and development	559		122		780		13
Real estate – commercial and farmland	7,894		876		15,168		1,428
Real estate – residential	15,963		2,000		15,464		2,066
	$	31,814	$	5,158	$	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 September 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 September 30, 2023 or December 31, 2022.

As of September 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	$	668,738	$	817,646	$	417,329	$	112,503	$	67,547	$	51,702	$	475,435	$	2,610,900
6	17		315		53		113		153		426		1,171		2,248
7	2,387		2,661		3,536		1,448		2,912		3,368		3,376		19,688
Total commercial, financial and agricultural	$	671,142	$	820,622	$	420,918	$	114,064	$	70,612	$	55,496	$	479,982	$	2,632,836
Current-period gross charge offs	2,920		20,026		13,793		1,316		1,228		2,760		25		42,068
Consumer
Risk Grade:
Pass	$	42,436	$	20,734	$	7,289	$	28,346	$	17,662	$	25,477	$	116,578	$	258,522
6	—		6		—		—		—		26		4		36
7	52		83		47		183		195		519		160		1,239
Total consumer	$	42,488	$	20,823	$	7,336	$	28,529	$	17,857	$	26,022	$	116,742	$	259,797
Current-period gross charge offs	50		311		74		1,359		892		1,203		251		4,140
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	7,341	$	39,182	$	—	$	46,523
6	—		—		—		—		—		1		—		1
7	—		—		—		—		33		551		—		584
Total indirect automobile	$	—	$	—	$	—	$	—	$	7,374	$	39,734	$	—	$	47,108
Current-period gross charge offs	—		—		—		—		—		135		—		135
Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	817,919	$	817,919
6	—		—		—		—		—		—		34,904		34,904
7	—		—		—		—		—		—		—		—
Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	852,823	$	852,823
Current-period gross charge offs	—		—		—		—		—		—		—		—
Municipal
Risk Grade:
Pass	$	7,630	$	22,886	$	54,558	$	178,659	$	14,961	$	218,399	$	—	$	497,093
Total municipal	$	7,630	$	22,886	$	54,558	$	178,659	$	14,961	$	218,399	$	—	$	497,093
Current-period gross charge offs	—		—		—		—		—		—		—		—
Premium Finance
Risk Grade:
Pass	$	970,328	$	27,170	$	2,710	$	—	$	—	$	—	$	—	$	1,000,208
7	4,361		2,765		—		—		—		—		—		7,126
Total premium finance	$	974,689	$	29,935	$	2,710	$	—	$	—	$	—	$	—	$	1,007,334
Current-period gross charge offs	310		4,600		310		—		—		—		—		5,220

As of September 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	$	381,311	$	861,269	$	696,969	$	131,329	$	53,581	$	31,230	$	68,218	$	2,223,907
6	—		—		—		—		—		507		—		507
7	—		269		303		—		—		11,700		—		12,272
Total real estate – construction and development	$	381,311	$	861,538	$	697,272	$	131,329	$	53,581	$	43,437	$	68,218	$	2,236,686
Current-period gross charge offs	—		—		—		—		—		—		—		—
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	363,104	$	1,820,072	$	1,975,533	$	1,134,332	$	798,673	$	1,488,013	$	106,312	$	7,686,039
6	427		344		60,040		—		38,259		44,074		40		143,184
7	—		305		449		3,604		1,490		30,318		—		36,166
Total real estate – commercial and farmland	$	363,531	$	1,820,721	$	2,036,022	$	1,137,936	$	838,422	$	1,562,405	$	106,352	$	7,865,389
Current-period gross charge offs	—		—		—		—		3,151		169		—		3,320
Real Estate - Residential
Risk Grade:
Pass	$	628,618	$	1,429,936	$	1,157,750	$	515,637	$	246,347	$	444,992	$	248,504	$	4,671,784
6	—		187		1,115		173		622		2,980		1,492		6,569
7	2,201		23,423		24,660		24,254		21,471		25,558		2,093		123,660
Total real estate - residential	$	630,819	$	1,453,546	$	1,183,525	$	540,064	$	268,440	$	473,530	$	252,089	$	4,802,013
Current-period gross charge offs	24		—		9		—		—		109		89		231
Total Loans
Risk Grade:
Pass	$	3,062,165	$	4,999,713	$	4,312,138	$	2,100,806	$	1,206,112	$	2,298,995	$	1,832,966	$	19,812,895
6	444		852		61,208		286		39,034		48,014		37,611		187,449
7	9,001		29,506		28,995		29,489		26,101		72,014		5,629		200,735
Total loans	$	3,071,610	$	5,030,071	$	4,402,341	$	2,130,581	$	1,271,247	$	2,419,023	$	1,876,206	$	20,201,079
Total current-period gross charge offs	3,304		24,937		14,186		2,675		5,271		4,376		365		55,114

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 September 30, 2023
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, June 30, 2023	$	50,789	$	4,548	$	98	$	2,335	$	357	$	776
Provision for loan losses	14,650		310		(149)		(589)		(9)		183
Loans charged off	(16,519)		(948)		(36)		—		—		(1,951)
Recoveries of loans previously charged off	4,745		203		158		—		—		1,639
Balance, September 30, 2023	$	53,665	$	4,113	$	71	$	1,746	$	348	$	647
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, June 30, 2023	$	54,589	$	96,140	$	62,439	$	272,071
Provision for loan losses	8,525		5,453		1,721		30,095
Loans charged off	—		—		(34)		(19,488)
Recoveries of loans previously charged off	74		371		236		7,426
Balance, September 30, 2023	$	63,188	$	101,964	$	64,362	$	290,104
Nine Months Ended September 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	46,050		2,146		(567)		(372)		(9)		141
Loans charged off	(42,068)		(4,140)		(135)		—		—		(5,220)
Recoveries of loans previously charged off	10,333		694		599		—		—		4,701
Balance, September 30, 2023	$	53,665	$	4,113	$	71	$	1,746	$	348	$	647
	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	29,920		38,097		7,708		123,114
Loans charged off	—		(3,320)		(231)		(55,114)
Recoveries of loans previously charged off	646		476		689		18,138
Balance, September 30, 2023	$	63,188	$	101,964	$	64,362	$	290,104

Three Months Ended September 30, 2022
(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, June 30, 2022	$	25,658	$	5,269	$	291	$	3,885	$	371	$	2,762
Provision for loan losses	9,568		(244)		(288)		(1,884)		(9)		(638)
Loans charged off	(4,722)		(1,228)		(50)		—		—		(1,205)
Recoveries of loans previously charged off	2,201		277		276		—		—		1,023
Balance, September 30, 2022	$	32,705	$	4,074	$	229	$	2,001	$	362	$	1,942
	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, June 30, 2022	$	23,232	$	59,349	$	51,825	$	172,642
Provision for loan losses	3,227		(1,200)		8,937		17,469
Loans charged off	—		(2,014)		(53)		(9,272)
Recoveries of loans previously charged off	96		96		83		4,052
Balance, September 30, 2022	$	26,555	$	56,231	$	60,792	$	184,891
Nine Months Ended September 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	11,521		1,102		(884)		(1,230)		(39)		(530)
Loans charged off	(13,527)		(3,790)		(179)		—		—		(3,640)
Recoveries of loans previously charged off	7,882		665		816		—		—		3,383
Balance, September 30, 2022	$	32,705	$	4,074	$	229	$	2,001	$	362	$	1,942
	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	3,841		(18,399)		32,580		27,962
Loans charged off	—		(3,378)		(190)		(24,704)
Recoveries of loans previously charged off	669		177		459		14,051
Balance, September 30, 2022	$	26,555	$	56,231	$	60,792	$	184,891

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 as of September 30, 2023:

(dollars in thousands)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination of Term Extension and Rate Reduction		Total		Percentage of Total Class of Financial Receivable
Commercial, financial and agricultural	$	1,180	$	2,502	$	—	$	—	$	3,682	0.1	%
Real estate – construction and development	—		278		—		—		278		—	%
Real estate – commercial and farmland	—		1,197		832		—		2,029		—	%
Real estate – residential	1,033		3,165		—		348		4,546		0.1	%
Total	$	2,213	$	7,142	$	832	$	348	$	10,535	0.1	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the nine months ended September 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.
Real estate – residential	Payments were deferred for a weighted average of four months

Term Extension
Loan Type	Financial Effect
Commercial, financial and agricultural	Maturity dates were extended for a weighted average of 10 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 12 months.
Real estate - residential	Maturity dates were extended for a weighted average of 92 months

Interest Rate Reduction
Loan Type	Financial Effect
Real estate – commercial and farmland	Interest rate was reduced by 4.75%

Combination of Term Extension and Rate Reduction
Loan Type	Financial Effect
Real estate - residential	Maturity date was extended 58 months and rate was reduced by 1.375%

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	$	2,385	$	—	$	815	$	482	$	3,682
Real estate – construction and development	—		278		—		—		278
Real estate – commercial and farmland	1,529		—		—		500		2,029
Real estate – residential	3,262		1,284		—		—		4,546
Total	$	7,176	$	1,562	$	815	$	982	$	10,535

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

(dollars in thousands)	Term Extension		Payment Deferral
Commercial, financial and agricultural	$	482	$	815
Real estate – construction and development	278		—
Real estate – commercial and farmland	500		—
Real estate – residential	1,090		194
Total	$	2,350	$	1,009