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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)
 6 Months Ended
Jun. 30, 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)June 30, 2021December 31, 2020
 AmountPercentageAmountPercentage
All  loans:
Commercial, financial, and agricultural$704,096 15 %$782,549 17 %
Real estate – construction, land development & other land loans566,417 12 %570,672 12 %
Real estate – mortgage – residential (1-4 family) first mortgages914,318 19 %972,378 21 %
Real estate – mortgage – home equity loans / lines of credit285,595 6 %306,256 6 %
Real estate – mortgage – commercial and other2,262,492 47 %2,049,203 43 %
Consumer loans53,928 1 %53,955 1 %
Subtotal4,786,846 100 %4,735,013 100 %
Unamortized net deferred loan fees(4,782)(3,698)
Total loans$4,782,064 $4,731,315 

Included in the line item "Commercial, financial, and agricultural" in the table above are PPP loans totaling $155.5 million and $240.5 million at June 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $6.2 million and $6.0 million at June 30, 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)June 30, 2021December 31, 2020
Guaranteed portions of non-PPP SBA loans included in table above$32,315 33,959 
Unguaranteed portions of non-PPP SBA loans included in table above126,380 135,703 
Total non-PPP SBA loans included in the table above$158,695 169,662 
Sold portions of SBA loans with servicing retained - not included in tables above$426,940 395,398 
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 six months ended June 30, 2020.
Accretable Yield for PCI loansFor the Six Months Ended June 30, 2020
Balance at beginning of period$4,149 
Accretion(742)
Reclassification from (to) nonaccretable difference366 
Other, net(510)
Balance at end of period3,263 
Schedule of nonperforming assets and nonaccrual loans
Nonperforming assets are defined as nonaccrual loans, troubled debt restructured loans (TDRs), loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
($ in thousands)June 30,
2021		December 31,
2020
Nonperforming assets  
Nonaccrual loans$32,993 35,076 
TDRs - accruing8,026 9,497 
Accruing loans > 90 days past due— — 
Total nonperforming loans41,019 44,573 
Foreclosed real estate826 2,424 
Total nonperforming assets$41,845 46,997 
The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated.
CECLIncurred Loss
($ in thousands)June 30,
2021		December 31,
2020
Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual LoansNonaccrual Loans
Commercial, financial, and agricultural$— 9,476 9,476 9,681 
Real estate – construction, land development & other land loans221 172 393 643 
Real estate – mortgage – residential (1-4 family) first mortgages1,759 4,006 5,765 6,048 
Real estate – mortgage – home equity loans / lines of credit378 967 1,345 1,333 
Real estate – mortgage – commercial and other11,467 4,419 15,886 17,191 
Consumer loans— 128 128 180 
Total$13,825 19,168 32,993 35,076 
Summary accrued interest receivables written off
The following table represents the accrued interest receivables written off by reversing interest income during the six months ended June 30, 2021.
($ in thousands)For the Six Months Ended June 30, 2021
Commercial, financial, and agricultural$156 
Real estate – construction, land development & other land loans— 
Real estate – mortgage – residential (1-4 family) first mortgages15 
Real estate – mortgage – home equity loans / lines of credit7 
Real estate – mortgage – commercial and other390 
Consumer loans— 
Total$568 
Schedule of analysis of payment status
The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2021.
($ 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$634 33 — 9,476 693,953 704,096 
Real estate – construction, land development & other land loans65 — — 393 565,959 566,417 
Real estate – mortgage – residential (1-4 family) first mortgages672 610 — 5,765 907,271 914,318 
Real estate – mortgage – home equity loans / lines of credit474 159 — 1,345 283,617 285,595 
Real estate – mortgage – commercial and other1,425 — — 15,886 2,245,181 2,262,492 
Consumer loans84 57 — 128 53,659 53,928 
Total$3,354 859 — 32,993 4,749,640 4,786,846 
Unamortized net deferred loan fees(4,782)
Total loans$4,782,064 
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020.
($ 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$4,731,315 
Analysis of collateral-dependent loans
The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2021.
($ in thousands)Residential PropertyBusiness AssetsLandCommercial PropertyOtherTotal Collateral-Dependent Loans
Commercial, financial, and agricultural$— 5,522 — — — 5,522 
Real estate – construction, land development & other land loans— — 513 — — 513 
Real estate – mortgage – residential (1-4 family) first mortgages2,475 — — — — 2,475 
Real estate – mortgage – home equity loans / lines of credit378 — — — — 378 
Real estate – mortgage – commercial and other— — 135 14,187 — 14,322 
Consumer loans— — — — 4 4 
Total$2,853 5,522 648 14,187 4 23,214 
Schedule of allowance for loan losses
The following table presents the activity in the allowance for loan losses for all loans for the three and six months ended June 30, 2021 (under the CECL methodology).
($ 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 June 30, 2021
Beginning balance$13,606 10,134 8,996 4,309 26,507 2,297 — 65,849 
Charge-offs(550)— (76)(8)(1,324)(173)— (2,131)
Recoveries153 392 236 218 78 227 — 1,304 
Provisions1,600 (422)(505)(782)97 12 — — 
Ending balance$14,809 10,104 8,651 3,737 25,358 2,363 — 65,022 
As of and for the six months ended June 30, 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(1,988)(66)(114)(139)(1,834)(307)— (4,448)
Recoveries667 686 323 229 340 262 — 2,507 
Provisions1,747 (2,011)(2,190)(1,308)3,506 256 — — 
Ending balance$14,809 10,104 8,651 3,737 25,358 2,363 — 65,022 
The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020 (under the Incurred Loss methodology).
($ 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$137 150 4,227 100 3,939 38 — 8,591 
The following table presents the activity in the allowance for loan losses for the three and six months ended June 30, 2020 (under the Incurred Loss methodology).
($ 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 June 30, 2020
Beginning balance$4,204 2,599 4,373 1,394 10,913 1,015 — 24,498 
Charge-offs(1,471)(5)(279)(313)(282)(110)— (2,460)
Recoveries260 353 224 83 55 31 — 1,006 
Provisions2,996 2,730 4,021 1,195 8,069 287 — 19,298 
Ending balance$5,989 5,677 8,339 2,359 18,755 1,223 — 42,342 
As of and for the six months ended June 30, 2020
Beginning balance$4,553 1,976 3,832 1,127 8,938 972 — 21,398 
Charge-offs(3,931)(45)(474)(381)(545)(397)— (5,773)
Recoveries477 643 315 166 102 126 — 1,829 
Provisions4,890 3,103 4,666 1,447 10,260 522 — 24,888 
Ending balance$5,989 5,677 8,339 2,359 18,755 1,223 — 42,342 
Ending balance as of June 30, 2020: Allowance for loan losses
Individually evaluated for impairment$830 67 817 — 1,052 — — 2,766 
Collectively evaluated for impairment$5,117 5,610 7,412 2,359 17,699 1,215 — 39,412 
Purchased credit impaired$42 — 110 — 4 8 — 164 
Loans receivable as of June 30, 2020
Ending balance – total$723,053 648,590 1,076,411 318,618 1,959,078 51,161 — 4,776,911 
Unamortized net deferred loan fees(6,848)
Total loans$4,770,063 
Ending balances as of June 30, 2020: Loans
Individually evaluated for impairment$6,736 965 9,743 325 17,697 — — 35,466 
Collectively evaluated for impairment$716,132 644,747 1,061,470 318,198 1,940,059 51,097 — 4,731,703 
Purchased credit impaired$185 2,878 5,198 95 1,322 64 — 9,742 
The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2021.
($ 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 commitments1,939 
Ending balance at June 30, 2021$10,025 
Schedule of loans individually evaluated for impairment
The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2020.
($ 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 (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.
The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of June 30, 2021.
Term Loans by Year of Origination
($ in thousands)20212020201920182017PriorRevolvingTotal
Commercial, financial, and agricultural
Pass$196,025 183,879 96,149 78,898 18,263 24,935 88,325 686,474 
Special Mention17 600 3,199 2,713 202 34 664 7,429 
Classified— 103 1,382 8,019 193 53 443 10,193 
Total commercial, financial, and agricultural196,042 184,582 100,730 89,630 18,658 25,022 89,432 704,096 
Real estate – construction, land development & other land loans
Pass211,053 251,155 50,615 10,583 12,887 10,797 12,915 560,005 
Special Mention220 761 4,283 1 114 28 12 5,419 
Classified86 415 122 186 59 123 2 993 
Total real estate – construction, land development & other land loans211,359 252,331 55,020 10,770 13,060 10,948 12,929 566,417 
Real estate – mortgage – residential (1-4 family) first mortgages
Pass103,275 213,061 124,409 85,317 92,248 264,553 7,931 890,794 
Special Mention1,182 1,310 205 167 373 3,170 96 6,503 
Classified370 164 548 1,398 541 13,122 878 17,021 
Total real estate – mortgage – residential (1-4 family) first mortgages104,827 214,535 125,162 86,882 93,162 280,845 8,905 914,318 
Real estate – mortgage – home equity loans / lines of credit
Pass1,358 424 758 1,379 282 1,334 272,050 277,585 
Special Mention— — 17 — — 19 1,151 1,187 
Classified12 111 66 — — 635 5,999 6,823 
Total real estate – mortgage – home equity loans / lines of credit1,370 535 841 1,379 282 1,988 279,200 285,595 
Real estate – mortgage – commercial and other
Pass624,944 648,750 306,306 182,547 163,321 253,697 43,030 2,222,595 
Special Mention3,889 5,245 2,593 2,780 2,290 1,479 817 19,093 
Classified4,540 3,032 2,520 5,438 4,618 656 — 20,804 
Total real estate – mortgage – commercial and other633,373 657,027 311,419 190,765 170,229 255,832 43,847 2,262,492 
Consumer loans
Pass9,564 25,411 4,660 2,393 987 861 9,703 53,579 
Special Mention— — — — — — 3 3 
Classified4 74 26 17 9 60 156 346 
Total consumer loans9,568 25,485 4,686 2,410 996 921 9,862 53,928 
Total$1,156,539 1,334,495 597,858 381,836 296,387 575,556 444,175 4,786,846 
Unamortized net deferred loan fees(4,782)
Total loans4,782,064 
At June 30, 2021, as derived from the table above, the Company had $39.6 million in loans graded as Special Mention and $56.2 million in loans graded as Classified, which includes all nonaccrual loans.
In the table above, substantially all of the "Classified Loans" have grades of 7 or Fail, with those categories having similar levels of risk. The amount of revolving lines of credit that converted to term loans during the period was immaterial.
The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020.
($ 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$4,613,259 61,260 25,418 35,076 4,735,013 
Unamortized net deferred loan fees(3,698)
Total loans4,731,315 
Schedule of information related to troubled debt restructuring loans The following table presents information related to loans modified in a TDR during the three months ended June 30, 2021 and 2020.
($ in thousands)For the three months ended June 30, 2021For the three months ended June 30, 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— $— $— — $— $— 
Real estate – construction, land development & other land loans— — — 1 67 67 
Real estate – mortgage – residential (1-4 family) first mortgages1 33 33 2 75 78 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other— — — — — — 
Consumer loans— — — — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural2 715 715 — — — 
Real estate – construction, land development & other land loans1 75 75 — — — 
Real estate – mortgage – residential (1-4 family) first mortgages1 263 263 — — — 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other3 1,569 1,569 — — — 
Consumer loans— — — — — — 
Total TDRs arising during period8 $2,655 $2,655 3 $142 $145 
Accruing restructured loans that were modified in the previous twelve months and that defaulted during the three months ended June 30, 2021 and 2020 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.
($ in thousands)For the Three Months Ended June 30, 2021For the Three Months Ended June 30, 2020
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing TDRs that subsequently defaulted
Real estate – mortgage – residential (1-4 family first mortgages)— $— — $— 
Real estate – mortgage – commercial and other— — 1 274 
Total accruing TDRs that subsequently defaulted— $— 1 $274 
Accruing restructured loans that were modified in the previous twelve months and that defaulted during the six months ended June 30, 2021 and 2020 are presented in the table below.
($ in thousands)For the Six Months Ended June 30, 2021For the Six Months Ended June 30, 2020
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing TDRs that subsequently defaulted
Real estate – mortgage – residential (1-4 family first mortgages)— $— — $— 
Real estate – mortgage – commercial and other— — 1 274 
Total accruing TDRs that subsequently defaulted— $— 1 $274