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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Summary of major categories of total loans outstanding
The following is a summary of the major categories of total loans outstanding:
($ in thousands)March 31, 2021December 31, 2020
 AmountPercentageAmountPercentage
All  loans:
Commercial, financial, and agricultural$768,318 17 %$782,549 17 %
Real estate – construction, land development & other land loans548,508 12 %570,672 12 %
Real estate – mortgage – residential (1-4 family) first mortgages916,169 20 %972,378 21 %
Real estate – mortgage – home equity loans / lines of credit294,611 6 %306,256 6 %
Real estate – mortgage – commercial and other2,049,507 44 %2,049,203 43 %
Consumer loans53,484 1 %53,955 1 %
Subtotal4,630,597 100 %4,735,013 100 %
Unamortized net deferred loan costs (fees)(6,543)(3,698)
Total loans$4,624,054 $4,731,315 

Included in the line item "Commercial, financial, and agricultural" in the table above are Paycheck Protection Program ("PPP") loans totaling $241.4 million and $240.5 million at March 31, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $9.0 million and $6.0 million at March 31, 2021 and December 31, 2020, respectively, in unamortized net deferred loan fees associated with PPP loans. These fees are being amortized under the effective interest method over the terms of the loans. Accelerated amortization is recorded in the periods in which principal amounts are forgiven in accordance with the terms of the program.

Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.
($ in thousands)March 31, 2021December 31, 2020
Guaranteed portions of non-PPP SBA loans included in table above$35,007 33,959 
Unguaranteed portions of non-PPP SBA loans included in table above133,917 135,703 
Total non-PPP SBA loans included in the table above$168,924 169,662 
Sold portions of SBA loans with servicing retained - not included in tables above$412,472 395,398 
Schedule of activity in purchased credit impaired loans At December 31, 2020, the carrying value of purchased credit impaired (PCI) loans were $8.6 million. The following table presents changes in the accretable yield for PCI loans for the three months ended March 31, 2020.
Accretable Yield for PCI loansFor the Three Months Ended March 31, 2020
Balance at beginning of period4,149 
Accretion(567)
Reclassification from (to) nonaccretable difference304 
Other, net(453)
Balance at end of period3,433 
Schedule of nonperforming assets and nonaccrual loans
Nonperforming assets are defined as nonaccrual loans, troubled debt restructured loans (TDRs), loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
($ in thousands)March 31,
2021		December 31,
2020
Nonperforming assets  
Nonaccrual loans$39,566 35,076 
TDRs - accruing8,601 9,497 
Accruing loans > 90 days past due— — 
Total nonperforming loans48,167 44,573 
Foreclosed real estate1,811 2,424 
Total nonperforming assets$49,978 46,997 
The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated.
CECLIncurred Loss
($ in thousands)March 31,
2021		December 31,
2020
Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual LoansNonaccrual Loans
Commercial, financial, and agricultural$— $10,330 $10,330 9,681 
Real estate – construction, land development & other land loans227 313 540 643 
Real estate – mortgage – residential (1-4 family) first mortgages2,444 3,763 6,207 6,048 
Real estate – mortgage – home equity loans / lines of credit378 1,298 1,676 1,333 
Real estate – mortgage – commercial and other7,521 13,133 20,654 17,191 
Consumer loans— 159 159 180 
Total$10,570 $28,996 $39,566 35,076 
Summary accrued interest receivables written off
The following table represents the accrued interest receivables written off by reversing interest income during the three months ended March 31, 2021.

($ in thousands)For the Three Months Ended March 31, 2021
Commercial, financial, and agricultural$64 
Real estate – construction, land development & other land loans— 
Real estate – mortgage – residential (1-4 family) first mortgages5 
Real estate – mortgage – home equity loans / lines of credit4 
Real estate – mortgage – commercial and other220 
Consumer loans— 
Total$293 
Schedule of analysis of payment status
The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2021.
($ in thousands)Accruing
30-59
Days Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$787 286 — 10,330 756,915 768,318 
Real estate – construction, land development & other land loans938 91 — 540 546,939 548,508 
Real estate – mortgage – residential (1-4 family) first mortgages6,257 80 — 6,207 903,625 916,169 
Real estate – mortgage – home equity loans / lines of credit487 — — 1,676 292,448 294,611 
Real estate – mortgage – commercial and other628 1,352 — 20,654 2,026,873 2,049,507 
Consumer loans82 68 — 159 53,175 53,484 
Total$9,179 1,877 — 39,566 4,579,975 4,630,597 
Unamortized net deferred loan fees(6,543)
Total loans$4,624,054 
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020.
($ in thousands)Accruing
30-59
Days
Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$1,464 1,101 — 9,681 770,166 782,412 
Real estate – construction, land development & other land loans572 — — 643 569,307 570,522 
Real estate – mortgage – residential (1-4 family) first mortgages10,146 869 — 6,048 951,088 968,151 
Real estate – mortgage – home equity loans / lines of credit1,088 42 — 1,333 303,693 306,156 
Real estate – mortgage – commercial and other2,540 3,111 — 17,191 2,022,422 2,045,264 
Consumer loans180 36 — 180 53,521 53,917 
Purchased credit impaired328 112 719 — 7,432 8,591 
Total$16,318 5,271 719 35,076 4,677,629 4,735,013 
Unamortized net deferred loan fees(3,698)
Total loans$4,731,315 
Analysis of collateral-dependent loans
The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2021.
($ in thousands)Residential PropertyBusiness AssetsLandCommercial PropertyOtherTotal Collateral-Dependent Loans
Commercial, financial, and agricultural$400 4,916 — 974 — 6,290 
Real estate – construction, land development & other land loans— — 547 — — 547 
Real estate – mortgage – residential (1-4 family) first mortgages3,434 — — — — 3,434 
Real estate – mortgage – home equity loans / lines of credit378 — — — — 378 
Real estate – mortgage – commercial and other— — 4,664 14,956 — 19,620 
Consumer loans— — — — 4 4 
Total$4,212 4,916 5,211 15,930 4 30,273 
Schedule of allowance for loan losses
The following table presents the activity in the allowance for loan losses for all loans for the three months ended March 31, 2021 (under the CECL methodology).
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended March 31, 2021
Beginning balance$11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 
Adjustment for implementation of CECL3,067 6,140 2,584 2,580 (257)674 (213)14,575 
Charge-offs(1,438)(66)(38)(131)(510)(134)— (2,317)
Recoveries514 294 87 11 262 35 — 1,203 
Provisions147 (1,589)(1,685)(526)3,409 244 — — 
Ending balance$13,606 10,134 8,996 4,309 26,507 2,297 — 65,849 
The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020 (under the Incurred Loss methodology).
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the year ended December 31, 2020
Beginning balance$4,553 1,976 3,832 1,127 8,938 972 — 21,398 
Charge-offs(5,608)(51)(478)(524)(968)(873)— (8,502)
Recoveries745 1,552 754 487 621 294 — 4,453 
Provisions11,626 1,878 3,940 1,285 15,012 1,085 213 35,039 
Ending balance$11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 
Ending balances as of December 31, 2020: Allowance for loan losses
Individually evaluated for impairment$3,546 30 800 — 2,175 — — 6,551 
Collectively evaluated for impairment$7,742 5,325 7,141 2,375 21,428 1,475 213 45,699 
Purchased credit impaired$28 — 107 — — 3 — 138 
Loans receivable as of December 31, 2020:
Ending balance – total$782,549 570,672 972,378 306,256 2,049,203 53,955 — 4,735,013 
Unamortized net deferred loan fees(3,698)
Total loans$4,731,315 
Ending balances as of December 31, 2020: Loans
Individually evaluated for impairment$7,700 677 9,303 15 18,582 4 — 36,281 
Collectively evaluated for impairment$774,712 569,845 958,848 306,141 2,026,682 53,913 — 4,690,141 
Purchased credit impaired$137 150 4,227 100 3,939 38 — 8,591 
The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2020 (under the Incurred Loss methodology).
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended March 31, 2020
Beginning balance$4,553 1,976 3,832 1,127 8,938 972 — 21,398 
Charge-offs(2,460)(40)(195)(68)(263)(287)— (3,313)
Recoveries217 290 91 83 47 95 — 823 
Provisions1,894 373 645 252 2,191 235 — 5,590 
Ending balance$4,204 2,599 4,373 1,394 10,913 1,015 — 24,498 
Ending balances as of March 31, 2020: Allowance for loan losses
Individually evaluated for impairment$1,093 73 739 90 1,233 — — 3,228 
Collectively evaluated for impairment$3,069 2,526 3,528 1,304 9,680 1,006 — 21,113 
Purchased credit impaired$42 — 106 — — 9 — 157 
Loans receivable as of March 31, 2020:
Ending balance – total$521,470 590,485 1,083,022 331,170 1,970,716 54,133 — 4,550,996 
Unamortized net deferred loan costs1,712 
Total loans$4,552,708 
Ending balances as of March 31, 2020: Loans
Individually evaluated for impairment$3,050 756 9,915 433 11,862 — — 26,016 
Collectively evaluated for impairment$518,233 589,566 1,067,805 330,644 1,954,834 54,059 — 4,515,141 
Purchased credit impaired$187 163 5,302 93 4,020 74 — 9,839 
The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2021.
($ in thousands)Total Allowance for Credit Losses - Unfunded Loan Commitments
Beginning balance at December 31, 2020$582 
Adjustment for implementation of CECL on January 1, 20217,504 
Charge-offs— 
Recoveries— 
Provisions for credit losses on unfunded commitments— 
Ending balance at March 31, 2021$8,086 
Schedule of loans individually evaluated for impairment
The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2020.
($ in thousands)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average
Recorded
Investment
Impaired loans with no related allowance recorded:
Commercial, financial, and agricultural$3,688 4,325 — 750 
Real estate – mortgage – construction, land development & other land loans554 694 — 308 
Real estate – mortgage – residential (1-4 family) first mortgages4,115 4,456 — 4,447 
Real estate – mortgage –home equity loans / lines of credit15 27 — 264 
Real estate – mortgage –commercial and other11,763 13,107 — 9,026 
Consumer loans4 4 — 1 
Total impaired loans with no allowance$20,139 22,613 — 14,796 
Impaired loans with an allowance recorded:
Commercial, financial, and agricultural$4,012 4,398 3,546 5,139 
Real estate – mortgage – construction, land development & other land loans123 131 30 502 
Real estate – mortgage – residential (1-4 family) first mortgages5,188 5,361 800 5,186 
Real estate – mortgage –home equity loans / lines of credit— — — 21 
Real estate – mortgage –commercial and other6,819 7,552 2,175 5,786 
Consumer loans— — — — 
Total impaired loans with allowance$16,142 17,442 6,551 16,634 
Schedule of recorded investment in loans by credit quality indicators
The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
Risk GradeDescription
Pass:
1Loans with virtually no risk, including cash secured loans.
2Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
3Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
4Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.  
5Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
P
(Pass)		Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.  
Special Mention:
6Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
7An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
8Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
9Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
F
(Fail)		Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.
The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of March 31, 2021.
Term Loans by Year of Origination
($ in thousands)20212020201920182017PriorRevolvingTotal
Commercial, financial, and agricultural
Pass147,842 293,349 105,182 87,514 21,260 27,420 66,442 749,009 
Special Mention22 653 3,690 2,900 49 42 452 7,808 
Classified177 4,067 3,724 2,729 255 48 501 11,501 
Total commercial, financial, and agricultural148,041 298,069 112,596 93,143 21,564 27,510 67,395 768,318 
Real estate – construction, land development & other land loans
Pass104,771 311,765 70,727 12,754 12,577 11,343 18,161 542,098 
Special Mention48 4,037 55 3 116 254 109 4,622 
Classified28 486 217 292 88 414 263 1,788 
Total real estate – construction, land development & other land loans104,847 316,288 70,999 13,049 12,781 12,011 18,533 548,508 
Real estate – mortgage – residential (1-4 family) first mortgages
Pass26,304 172,807 170,991 180,894 119,528 213,166 7,325 891,015 
Special Mention638 1,459 291 313 384 3,963 23 7,071 
Classified431 1,406 2,508 2,210 1,180 9,910 438 18,083 
Total real estate – mortgage – residential (1-4 family) first mortgages27,373 175,672 173,790 183,417 121,092 227,039 7,786 916,169 
Real estate – mortgage – home equity loans / lines of credit
Pass175 531 1,139 1,827 1,810 1,388 279,116 285,986 
Special Mention— — 18 — — 20 1,298 1,336 
Classified— 162 137 — — 738 6,252 7,289 
Total real estate – mortgage – home equity loans / lines of credit175 693 1,294 1,827 1,810 2,146 286,666 294,611 
Real estate – mortgage – commercial and other
Pass180,222 699,117 349,785 222,224 189,511 326,685 26,465 1,994,009 
Special Mention3,833 15,743 2,775 2,940 3,394 1,915 817 31,417 
Classified379 6,569 6,783 2,842 2,900 4,346 262 24,081 
Total real estate – mortgage – commercial and other184,434 721,429 359,343 228,006 195,805 332,946 27,544 2,049,507 
Consumer loans
Pass4,696 26,569 5,675 2,872 1,281 1,293 10,626 53,012 
Special Mention— — — — — — 76 76 
Classified— 88 45 28 — 84 151 396 
Total consumer loans4,696 26,657 5,720 2,900 1,281 1,377 10,853 53,484 
Total469,566 1,538,808 723,742 522,342 354,333 603,029 418,777 4,630,597 
Unamortized net deferred loan fees(6,543)
Total loans4,624,054 
In the table above, substantially all of the "Classified Loans" have grades of 7 or Fail, with those categories having similar levels of risk. The amount of revolving lines of credit that converted to term loans during the period was immaterial.
The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020.
($ in thousands)PassSpecial
Mention Loans		Classified
Accruing Loans		Classified
Nonaccrual
Loans		Total
Commercial, financial, and agricultural$762,091 9,553 1,087 9,681 782,412 
Real estate – construction, land development & other land loans560,845 7,877 1,157 643 570,522 
Real estate – mortgage – residential (1-4 family) first mortgages943,455 7,609 11,039 6,048 968,151 
Real estate – mortgage – home equity loans / lines of credit297,795 1,468 5,560 1,333 306,156 
Real estate – mortgage – commercial and other1,988,684 34,588 4,801 17,191 2,045,264 
Consumer loans53,488 80 169 180 53,917 
Purchased credit impaired6,901 85 1,605 — 8,591 
Total$4,613,259 61,260 25,418 35,076 4,735,013 
Unamortized net deferred loan fees(3,698)
Total loans4,731,315 
Schedule of information related to loans modified in a troubled debt restructuring The following table presents information related to loans modified in a TDR during the three months ended March 31, 2021 and 2020.
($ in thousands)For the three months ended March 31, 2021For the three months ended March 31, 2020
Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances		Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances
TDRs – Accruing
Commercial, financial, and agricultural— $— $— 2 $143 $143 
Real estate – construction, land development & other land loans— — — — — — 
Real estate – mortgage – residential (1-4 family) first mortgages— — — — — — 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other1 160 160 — — — 
Consumer loans— — — — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural1 111 108 — — — 
Real estate – construction, land development & other land loans— — — — — — 
Real estate – mortgage – residential (1-4 family) first mortgages— — — — — — 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other— — — — — — 
Consumer loans— — — — — — 
Total TDRs arising during period2 $271 $268 2 $143 $143