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LOANS (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Schedule of composition of loan portfolio
The following table shows the composition of the loan portfolio:
($ in thousands)June 30, 2022December 31, 2021
Loans held for sale
Mortgage loans held for sale$6,703 $7,678 
Total LHFS$6,703 $7,678 
Loans held for investment
Commercial, financial and agriculture (1)$402,619 $397,516 
Commercial real estate1,810,204 1,683,698 
Consumer real estate871,051 838,654 
Consumer installment41,050 39,685 
Total loans3,124,924 2,959,553 
Less allowance for credit losses(32,400)(30,742)
Net LHFI$3,092,524 $2,928,811 
____________________________________________________________
(1)
Loan balance includes $6.3 million and $41.1 million in Paycheck Protection Program (“PPP”) loans as of June 30, 2022 and December 31, 2021, respectively.
Schedule of Company's loans that are past due and nonaccrual loans including PCD loans
The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans:
($ in thousands)June 30, 2022
Past Due
30 to 89
Days		Past Due
90 Days
or More and
Still Accruing		NonaccrualPCDTotal
Past Due,
Nonaccrual
and PCD		Total
LHFI		Nonaccrual
and PCD
with No ACL
Commercial, financial and agriculture (1)$207 $527 $335 $— $1,069 $402,619 $218 
Commercial real estate1,894 — 17,733 1,402 21,029 1,810,204 1,487 
Consumer real estate1,437 — 2,928 1,276 5,641 871,051 90 
Consumer installment194 — 4 — 198 41,050 — 
Total$3,732 $527 $21,000 $2,678 $27,937 $3,124,924 $1,795 
___________________________________________________________
(1)
Total loan balance includes $6.3 million in PPP loans as of June 30, 2022.
December 31, 2021
($ in thousands)Past Due
30 to 89
Days		Past Due 90
Days or
More and
Still Accruing		NonaccrualPCDTotal
Past Due,
Nonaccrual
and PCD		Total
LHFI		Nonaccrual
and PCD
with No ACL
Commercial, financial and agriculture (1)$246 $— $190 $— $436 $397,516 $— 
Commercial real estate453 — 19,445 2,082 21,980 1,683,698 1,661 
Consumer real estate2,140 45 3,776 2,512 8,473 838,654 1,488 
Consumer installment121 — 7 1 129 39,685 — 
Total$2,960 $45 $23,418 $4,595 $31,018 $2,959,553 $3,149 
___________________________________________________________
(1)
Total loan balance includes $41.1 million in PPP loans as of December 31, 2021.
Schedule of troubled debt restructurings
The following table presents LHFI by class modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021.
($ in thousands, except for number of loans)Three Months Ended June 30,
2022Number of
Loans		Outstanding
Recorded
Investment
Pre-Modification		Outstanding
Recorded
Investment
Post-Modification
Commercial, financial and agriculture1$15$15
Total1$15$15
2021
Commercial real estate2$237$237
Consumer real estate1$54 $44 
Total3$291$281
The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the three months period ended June 30, 2022 and 2021, respectively.
($ in thousands, except for number of loans)Six Months Ended June 30,
2022Number of
Loans		Outstanding
Recorded
Investment
Pre-Modification		Outstanding
Recorded
Investment
Post-Modification
Commercial, financial and agriculture1$15$15
Total1$15$15
2021
Commercial real estate2$237$237
Consumer real estate1$54 $44 
Total3$291$281
The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively.
The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans).
Troubled Debt Restructurings
That Subsequently Defaulted:
Six Months Ended June 30,
20222021
Number of
Loans		Recorded
Investment		Number of
Loans		Recorded
Investment
Commercial real estate3$4,562 3$1,027 
Consumer real estate3133 144 
Total6$4,695 4$1,071 
The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and $238 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively.
The following tables represents the Company’s TDRs at June 30, 2022 and December 31, 2021:
June 30, 2022Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		NonaccrualTotal
($ in thousands)
Commercial, financial and agriculture$15 $— $— $65 $79 
Commercial real estate3,142 — — 15,849 18,991 
Consumer real estate1,157 — — 902 2,059 
Consumer installment15 — — — 15 
Total$4,329 $— $— $16,816 $21,144 
Allowance for credit losses$53 $— $— $3,778 $3,831 
December 31, 2021Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		NonaccrualTotal
($ in thousands)
Commercial, financial and agriculture$63$—$—$107$170
Commercial real estate3,367——16,85820,225
Consumer real estate1,772——1,9733,745
Consumer installment18———18
Total$5,220$—$—$18,938$24,158
Allowance for credit losses$90$—$—$4,217$4,307
Schedule of amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed and risk category of loans by class of loans
The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at June 30, 2022 and December 31, 2021. Revolving loans converted to term as of the six months ended June 30, 2022 and December 31, 2021 were not material to the total loan portfolio.
As of June 30, 2022Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ in thousands)20222021202020192018Prior
Commercial, financial and
agriculture:
Risk Rating
Pass$78,092 $118,432 $50,598 $46,425 $46,582 $60,811 $66 $401,006 
Special mention— — 218 336 — 416 — 970 
Substandard35 40 — 47 50 471 — 643 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$78,126 $118,472 $50,816 $46,808 $46,632 $61,698 $66 $402,619 
Commercial real estate:
Risk Rating
Pass$288,699 $417,922 $283,843 $185,986 $149,012 $396,464 $— $1,721,925 
Special mention— 1,309 2,269 1,725 6,911 13,889 — 26,104 
Substandard— 4,973 2,761 2,284 16,362 35,121 — 61,501 
Doubtful— — — — — 675 — 675 
Total commercial real estate$288,699 $424,204 $288,874 $189,995 $172,284 $446,149 $— $1,810,204 
Consumer real estate:
Risk Rating
Pass$139,239 $224,599 $135,559 $56,347 $55,459 $144,043 $99,869 $855,114 
Special mention— — — 201 26 3,028 — 3,254 
Substandard53 424 420 653 2,569 7,145 1,418 12,683 
Doubtful— — — — — — — — 
Total consumer real estate$139,292 $225,023 $135,978 $57,201 $58,053 $154,215 $101,287 $871,051 
Consumer installment:
Risk Rating
Pass$10,954 $13,170 $6,613 $2,895 $998 $1,853 $4,502 $40,986 
Special mention— — — — — — — — 
Substandard22 4 23 2 3 9 — 63 
Doubtful— — — — — — — — 
Total consumer installment$10,976 $13,175 $6,636 $2,897 $1,001 $1,863 $4,502 $41,050 
Total
Pass$516,984 $774,123 $476,613 $291,654 $252,050 $603,170 $104,438 $3,019,031 
Special mention— 1,309 2,488 2,261 6,937 17,333 — 30,328 
Substandard109 5,441 3,204 2,986 18,984 42,746 1,418 74,890 
Doubtful— — — — — 675 — 675 
Total$517,093 $780,874 $482,304 $296,901 $277,971 $663,924 $105,856 $3,124,924 
As of December 31, 2021Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ in thousands)20212020201920182017Prior
Commercial, financial and:
agriculture
Risk Rating
Pass$152,798 $60,106 $52,802 $47,988 $22,083 $43,773 $178 $379,728 
Special mention— 255 749 90 481 29 — 1,604 
Substandard— — 1,398 6,184 360 8,242 — 16,184 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$152,798 $60,361 $54,949 $54,262 $22,924 $52,044 $178 $397,516 
Commercial real estate:        
Risk Rating
Pass$402,284 $313,288 $207,879 $177,943 $134,234 $332,588 $— $1,568,216 
Special mention1,326 2,259 1,782 15,076 2,779 15,519 — 38,741 
Substandard3,904 3,189 1,931 17,147 18,814 31,756 — 76,741 
Doubtful— — — — — — — — 
Total commercial real estate$407,514 $318,736 $211,592 $210,166 $155,827 $379,863 $— $1,683,698 
Consumer real estate:        
Risk Rating
Pass$243,340 $164,359 $70,465 $66,940 $51,988 $121,238 $98,444 $816,774 
Special mention— — 331 26 1,746 1,949 — 4,052 
Substandard444 532 1,280 3,410 1,288 9,241 1,633 17,828 
Doubtful— — — — — — — — 
Total consumer real estate$243,784 $164,891 $72,076 $70,376 $55,022 $132,428 $100,077 $838,654 
Consumer installment:
Risk Rating
Pass$17,980 $9,245 $4,222 $1,645 $1,088 $1,758 $3,697 $39,635 
Special mention— — — — 1 — — 1 
Substandard— 26 3 5 8 7 — 49 
Doubtful— — — — — — — — 
Total consumer installment$17,980 $9,271 $4,225 $1,650 $1,097 $1,765 $3,697 $39,685 
Total
Pass$816,402 $546,998 $335,368 $294,516 $209,393 $499,357 $102,319 $2,804,353 
Special mention1,326 2,514 2,862 15,192 5,007 17,497 — 44,398 
Substandard4,348 3,747 4,612 26,746 20,470 49,246 1,633 110,802 
Doubtful— — — — — — — — 
Total $822,076 $553,259 $342,842 $336,454 $234,870 $566,100 $103,952 $2,959,553 
Schedule of allowance for credit losses
The following table presents the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2022 and 2021:
($ in thousands)Three Months Ended June 30, 2022
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$4,874 $17,773 $8,492 $481 $31,620 
Provision for credit losses(313)629 62 72 450 
Loans charged-off(94)(24)(140)(168)(426)
Recoveries 44 290 338 84 756 
Total ending allowance balance$4,511 $18,668 $8,752 $469 $32,400 
($ in thousands)Six Months Ended June 30, 2022
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$4,873 $17,552 $7,889 $428 $30,742 
Provision for credit losses(313)629 62 72 450 
Loans charged-off(146)(27)(147)(337)(657)
Recoveries97 514 948 306 1,865 
Total ending allowance balance$4,511 $18,668 $8,752 $469 $32,400 
($ in thousands)Three Months Ended June 30, 2021
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$4,158 $17,578 $10,280 $647 $32,663 
Provision for credit losses— — — — — 
Loans charged-off(490)(166)(124)(108)(888)
Recoveries242 161 183 96 682 
Total ending allowance balance$3,910 $17,573 $10,339 $635 $32,457 
($ in thousands)Six Months Ended June 30, 2021
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$6,214$24,319$4,736$551$35,820
Impact of ASC 326 adoption on non-PCD loans(1,319)(4,607)5,257(49)(718)
Impact of ASC 326 adoption on PCD loans16657537221,115
Provision for credit losses—————
Loans charged-off(1,476)(3,007)(263)(265)(5,011)
Recoveries3252932373961,251
Total ending allowance balance$3,910$17,573$10,339$635$32,457
The Company recorded a $450 thousand provision for credit losses for the six months ended June 30, 2022, compared to no provision for the same period in 2021. The $450 thousand provision for credit losses is primarily attributed to an increase in total loans held for investment. The Company determined that no provision adjustment was necessary at June 30, 2021 due to the improved macroeconomic outlook.
The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2022 and December 31, 2021 ($ in thousands).
June 30, 2022Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
LHFI
Individually evaluated$218 $1,487 $312 $— $2,017 
Collectively evaluated402,401 1,808,717 870,739 41,050 3,122,907 
Total$402,619 $1,810,204 $871,051 $41,050 $3,124,924 
Allowance for Credit Losses     
Individually evaluated$— $— $6 $— $6 
Collectively evaluated4,511 18,668 8,746 469 32,394 
Total$4,511 $18,668 $8,752 $469 $32,400 
December 31, 2021Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
LHFI
Individually evaluated$— $1,712 $1,858 $— $3,570 
Collectively evaluated397,516 1,681,986 836,796 39,685 2,955,983 
Total$397,516 $1,683,698 $838,654 $39,685 $2,959,553 
Allowance for Credit Losses     
Individually evaluated$— $4 $2 $— $6 
Collectively evaluated4,873 17,548 7,887 428 30,736 
Total$4,873 $17,552 $7,889 $428 $30,742 
Financing Receivable, Allowance for Credit Loss
The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of June 30, 2022 and December 31, 2021:
June 30, 2022
($ in thousands)Real PropertyEquipmentTotal
Commercial, financial and agriculture$— $218 $218 
Commercial real estate1,487 — 1,487 
Consumer real estate312 — 312 
Total$1,799 $218 $2,017 
December 31, 2021
($ in thousands)Real PropertyTotal
Commercial real estate$1,712$1,712
Consumer real estate1,8581,858
Total$3,570$3,570