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LOANS AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2023

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)	2023		2022
Commercial, financial and agricultural	$	2,688,929	$	2,679,403
Consumer	241,552		384,037
Indirect automobile	34,257		108,648
Mortgage warehouse	818,728		1,038,924
Municipal	492,668		509,151
Premium finance	946,562		1,023,479
Real estate – construction and development	2,129,187		2,086,438
Real estate – commercial and farmland	8,059,754		7,604,867
Real estate – residential	4,857,666		4,420,306
	$	20,269,303	$	19,855,253

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 received 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)	2023		2022
Commercial, financial and agricultural	$	8,059	$	11,094
Consumer	1,153		420
Indirect automobile	299		346



Real estate – construction and development	282		523
Real estate – commercial and farmland	11,295		13,203
Real estate – residential (1)	130,029		109,222
	$	151,117	$	134,808

(1) Included in real estate - residential were $90.2 million and $69.6 million of serviced GNMA-guaranteed nonaccrual loans at December 31, 2023 and 2022, respectively.

Interest income recognized on nonaccrual loans during the years ended December 31, 2023 and 2022 was not material.

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


(dollars in thousands)	December 31, 2023		December 31, 2022
Commercial, financial and agricultural	$	2,049	$	33






Real estate – commercial and farmland	9,109		1,464
Real estate – residential	75,419		58,734
	$	86,577	$	60,231

The following tables present an analysis of past-due loans as of December 31, 2023 and 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
December 31, 2023
Commercial, financial and agricultural	$	11,023	$	5,439	$	9,733	$	26,195	$	2,662,734	$	2,688,929	$	5,310
Consumer	2,155		1,037		498		3,690		237,862		241,552		—
Indirect automobile	153		17		78		248		34,009		34,257		—
Mortgage warehouse	—		—		—		—		818,728		818,728		—
Municipal	—		—		—		—		492,668		492,668		—
Premium finance	12,379		6,832		11,678		30,889		915,673		946,562		11,678
Real estate – construction and development	2,094		—		282		2,376		2,126,811		2,129,187		—
Real estate – commercial and farmland	5,070		1,656		6,352		13,078		8,046,676		8,059,754		—
Real estate – residential	49,976		19,300		127,087		196,363		4,661,303		4,857,666		—
Total	$	82,850	$	34,281	$	155,708	$	272,839	$	19,996,464	$	20,269,303	$	16,988


(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, 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

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, 2023 and 2022, there were $40.4 million and $41.8 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, 2023				December 31, 2022
	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial, financial and agricultural	$	5,889	$	567	$	7,128	$	6,294




Premium finance	1,990		45		3,233		—
Real estate – construction and development	280		23		780		13
Real estate – commercial and farmland	11,114		108		15,168		1,428
Real estate – residential	21,102		2,654		15,464		2,066
	$	40,375	$	3,397	$	41,773	$	9,801

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 8 or 9 at December 31, 2023 and 2022.


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2023	2023		2022		2021		2020		2019		Prior
Commercial, Financial and Agricultural
Risk Grade:
Pass	$	892,951	$	758,471	$	384,830	$	95,055	$	56,447	$	41,095	$	432,472	$	2,661,321
6	—		335		5,722		92		109		451		803		7,512
7	1,512		3,595		3,222		1,140		3,533		5,748		1,346		20,096


Total commercial, financial and agricultural	$	894,463	$	762,401	$	393,774	$	96,287	$	60,089	$	47,294	$	434,621	$	2,688,929
Current-period gross charge offs	$	7,485	$	26,331	$	18,263	$	1,746	$	1,568	$	2,851	$	368	$	58,612
Consumer
Risk Grade:
Pass	$	44,736	$	17,661	$	5,878	$	25,654	$	15,838	$	20,937	$	109,214	$	239,918
6	—		5		—		—		—		26		—		31
7	154		181		41		334		197		531		165		1,603


Total consumer	$	44,890	$	17,847	$	5,919	$	25,988	$	16,035	$	21,494	$	109,379	$	241,552
Current-period gross charge offs	$	115	$	388	$	97	$	1,649	$	1,205	$	1,474	$	370	$	5,298
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	6,086	$	27,646	$	—	$	33,732

7	—		—		—		—		55		470		—		525


Total indirect automobile	$	—	$	—	$	—	$	—	$	6,141	$	28,116	$	—	$	34,257
Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	155	$	—	$	155
Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	772,366	$	772,366
6	—		—		—		—		—		—		46,362		46,362



Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	818,728	$	818,728
Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Municipal
Risk Grade:
Pass	$	14,216	$	27,346	$	48,941	$	177,156	$	14,655	$	208,236	$	2,118	$	492,668




Total municipal	$	14,216	$	27,346	$	48,941	$	177,156	$	14,655	$	208,236	$	2,118	$	492,668
Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Premium Finance
Risk Grade:
Pass	$	928,930	$	4,038	$	1,916	$	—	$	—	$	—	$	—	$	934,884

7	10,777		901		—		—		—		—		—		11,678


Total premium finance	$	939,707	$	4,939	$	1,916	$	—	$	—	$	—	$	—	$	946,562
Current-period gross charge offs	$	942	$	5,316	$	309	$	—	$	—	$	—	$	—	$	6,567


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2023	2023		2022		2021		2020		2019		Prior
Real Estate – Construction and Development
Risk Grade:
Pass	$	457,077	$	938,909	$	505,254	$	58,840	$	54,646	$	30,042	$	81,662	$	2,126,430
6	—		—		—		—		—		479		—		479
7	—		266		1,512		—		—		500		—		2,278


Total real estate – construction and development	$	457,077	$	939,175	$	506,766	$	58,840	$	54,646	$	31,021	$	81,662	$	2,129,187
Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	450,315	$	1,890,498	$	2,133,833	$	1,090,735	$	765,640	$	1,437,323	$	100,206	$	7,868,550
6	—		17,131		53,329		—		30,200		46,370		—		147,030
7	428		418		15,578		2,660		6,106		18,984		—		44,174


Total real estate – commercial and farmland	$	450,743	$	1,908,047	$	2,202,740	$	1,093,395	$	801,946	$	1,502,677	$	100,206	$	8,059,754
Current-period gross charge offs	$	—	$	—	$	—	$	—	$	3,151	$	1,136	$	40	$	4,327
Real Estate - Residential
Risk Grade:
Pass	$	714,684	$	1,425,186	$	1,148,092	$	506,137	$	236,147	$	423,648	$	262,968	$	4,716,862
6	13		—		72		201		234		1,411		380		2,311
7	5,057		26,171		28,459		30,566		19,357		25,263		3,620		138,493


Total real estate - residential	$	719,754	$	1,451,357	$	1,176,623	$	536,904	$	255,738	$	450,322	$	266,968	$	4,857,666
Current-period gross charge offs	$	24	$	8	$	27	$	—	$	—	$	111	$	89	$	259
Total Loans
Risk Grade:
Pass	$	3,502,909	$	5,062,109	$	4,228,744	$	1,953,577	$	1,149,459	$	2,188,927	$	1,761,006	$	19,846,731
6	13		17,471		59,123		293		30,543		48,737		47,545		203,725
7	17,928		31,532		48,812		34,700		29,248		51,496		5,131		218,847


Total loans	$	3,520,850	$	5,111,112	$	4,336,679	$	1,988,570	$	1,209,250	$	2,289,160	$	1,813,682	$	20,269,303
Current-period gross charge offs	$	8,566	$	32,043	$	18,696	$	3,395	$	5,924	$	5,727	$	867	$	75,218


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
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


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
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
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


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
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

Modifications to Borrowers Experiencing Financial Difficulty

The Company periodically provides modifications to borrowers experiencing financial difficulty. These modifications include either payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan.

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 December 31, 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	$	2,212	$	2,960	$	—	$	—	$	5,172	0.2	%






Real estate – commercial and farmland	3,905		3,101		815		—		7,821		0.1	%
Real estate – residential	1,029		5,539		—		804		7,372		0.2	%
Total	$	7,146	$	11,600	$	815	$	804	$	20,365	0.1	%

The Company has unfunded commitments of $1.5 million to borrowers experiencing financial difficulty for which the Company has modified their loans.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023:


Payment Deferral
Loan Type						Financial Effect
Commercial, financial and agricultural						Payments were deferred for a weighted average of five months






Real estate – commercial and farmland						Payments were deferred for a weighted average of six months
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 nine months.

Real estate – commercial and farmland						Maturity dates were extended for an average of 13 months.
Real estate - residential						Maturity dates were extended for a weighted average of 103 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 for a weighted average of 120 months and rate was reduced by a weighted average 0.95%

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	$	4,018	$	355	$	—	$	799	$	5,172






Real estate – commercial and farmland	6,692		1,129		—		—		7,821
Real estate – residential	5,113		711		442		1,106		7,372
Total	$	15,823	$	2,195	$	442	$	1,905	$	20,365

The following table provides the amortized cost basis of financing receivables at December 31, 2023 that had a payment default 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	$	—	$	1,154






Real estate – commercial and farmland	—		1,129
Real estate – residential	2,067		192
Total	$	2,067	$	2,475

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)	2023		2022
Balance, January 1	$	80,746	$	59,214
Advances	61,764		36,234
Repayments	(2,453)		(14,702)

Ending balance	$	140,057	$	80,746

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. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

The allowance for credit losses was determined at both December 31, 2023 and 2022 using the Moody's baseline scenario economic forecast representing management's best estimate over the reasonable and supportable forecast period. During the year ended December 31, 2023, the allowance for credit losses increased primarily due to the updated economic forecast and organic loan growth during the period. The current forecast reflects, among other things, a decrease in forecast levels of commercial real estate prices, partially offset by improvements in forecast levels of home prices and gross domestic product compared with the forecast at December 31, 2022.

During the year ended December 31, 2022, the Company purchased a pool of lines of credit secured by cash value life insurance totaling $472.3 million. This purchase resulted in additions to the allowance for credit losses of approximately $1.8 million between the commercial, financial and agricultural and consumer loan segments.

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		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	68,349		2,963		(745)		(440)		(12)		343
Loans charged off	(58,612)		(5,298)		(155)		—		—		(6,567)
Recoveries of loans previously charged off	14,966		824		776		—		—		5,801
Balance, December 31, 2023	$	64,053	$	3,902	$	50	$	1,678	$	345	$	602

	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	27,446		47,079		8,532		153,515
Loans charged off	—		(4,327)		(259)		(75,218)
Recoveries of loans previously charged off	949		634		887		24,837
Balance, December 31, 2023	$	61,017	$	110,097	$	65,356	$	307,100


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Year ended December 31, 2022
Balance, January 1, 2022	$	26,829	$	6,097	$	476	$	3,231	$	401	$	2,729


Provision for loan losses	21,307		3,360		(1,082)		(1,113)		(44)		(1,317)
Loans charged off	(18,635)		(4,926)		(265)		—		—		(5,452)
Recoveries of loans previously charged off	9,954		882		1,045		—		—		5,065
Balance, December 31, 2022	$	39,455	$	5,413	$	174	$	2,118	$	357	$	1,025

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Year ended December 31, 2022
Balance, January 1, 2022	$	22,045	$	77,831	$	27,943	$	167,582


Provision for loan losses	9,749		(7,049)		28,799		52,610
Loans charged off	(27)		(3,574)		(196)		(33,075)
Recoveries of loans previously charged off	892		225		497		18,560
Balance, December 31, 2022	$	32,659	$	67,433	$	57,043	$	205,677


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Year ended December 31, 2021
Balance, January 1, 2021	$	7,359	$	4,076	$	1,929	$	3,666	$	791	$	3,879

Provision for loan losses	12,071		7,330		(1,944)		(435)		(390)		(2,352)
Initial allowance for PCD assets	9,432		—		—		—		—		—
Loans charged off	(7,760)		(6,248)		(1,188)		—		—		(3,668)
Recoveries of loans previously charged off	5,727		939		1,679		—		—		4,870
Balance, December 31, 2021	$	26,829	$	6,097	$	476	$	3,231	$	401	$	2,729


	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Year ended December 31, 2021
Balance, January 1, 2021	$	45,304	$	88,894	$	43,524	$	199,422

Provision for loan losses	(23,532)		(9,784)		(16,045)		(35,081)
Initial allowance for PCD assets	—		—		—		9,432
Loans charged off	(233)		(1,852)		(667)		(21,616)
Recoveries of loans previously charged off	506		573		1,131		15,425
Balance, December 31, 2021	$	22,045	$	77,831	$	27,943	$	167,582

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