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LOANS (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The composition of the loan portfolio as of December 31, 2022 and December 31, 2021, is summarized below:
($ in thousands)December 31, 2022December 31, 2021
Loans held for sale
Mortgage loans held for sale$4,443 $7,678 
Total LHFS$4,443 $7,678 
  
Loans held for investment  
Commercial, financial and agriculture (1)$536,192 $397,516 
Commercial real estate2,135,263 1,683,698 
Consumer real estate1,058,999 838,654 
Consumer installment43,703 39,685 
Total loans3,774,157 2,959,553 
Less allowance for credit losses (38,917)(30,742)
Net LHFI$3,735,240 $2,928,811 
______________________________________
(1)Loan balance includes $710 thousand and $41.1 million in PPP loans as of December 31, 2022 and 2021, respectively.
Schedule of Company's Loans that are Past Due and Nonaccrual Loans Including PCD Loans
The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including PCD loans:
December 31, 2022
($ 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)$220 $— $19 $— $239 $536,192 $— 
Commercial real estate1,984 — 7,445 1,129 10,558 2,135,263 4,560 
Consumer real estate3,386 289 2,965 1,032 7,672 1,058,999 791 
Consumer installment173 — 1 — 174 43,703 — 
Total$5,763 $289 $10,430 $2,161 $18,643 $3,774,157 $5,351 
______________________________________
(1)Total loan balance includes $710 thousand in PPP loans as of December 31, 2022.
December 31, 2021
($ 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 $41.1 million in PPP loans as of December 31, 2021.
Schedule of Impaired Loans, Excluding PCI Loans
December 31, 2020Recorded
Investment		Unpaid
Balance		Related
Allowance		Average
Recorded
Investment
YTD		Interest
Income
Recognized
YTD
($ in thousands)
Impaired loans with no related allowance:
Commercial, financial and agriculture$— $— $— $198 $— 
Commercial real estate5,884 6,087 — 11,433 47 
Consumer real estate712 758 — 790 5 
Consumer installment23 24 — 17 — 
Total$6,619 $6,869 $— $12,438 $52 
Impaired loans with a related allowance:
Commercial, financial and agriculture$2,241 $2,254 $1,235 $2,186 $58 
Commercial real estate17,973 18,248 4,244 13,687 36 
Consumer real estate536 544 176 734 4 
Consumer installment26 26 14 86 — 
Total$20,776 $21,072 $5,669 $16,693 $98 
Total impaired loans:
Commercial, financial and agriculture$2,241 $2,254 $1,235 $2,384 $58 
Commercial real estate23,857 24,335 4,244 25,120 83 
Consumer real estate1,248 1,302 176 1,524 9 
Consumer installment49 50 14 103 — 
Total Impaired Loans $27,395 $27,941 $5,669 $29,131 $150 
Summary of Carrying Amount of Loans Acquired in Business Combination
The following table shows the carrying amount of loans acquired in the BBI acquisition transaction for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination:
($ in thousands)Carrying Amount
Purchase price of loans at acquisition$27,669 
Allowance for credit losses at acquisition1,303 
Non-credit discount (premium) at acquisition530 
Par value of acquired loans at acquisition$29,502 
Schedule of Troubled Debt Restructurings
The following table presents LHFI by class modified as TDRs that occurred during the twelve months ended December 31, 2022, 2021, and 2020 ($ in thousands, except for number of loans).
December 31, 2022Number of
Loans		Outstanding
Recorded
Investment
Pre-Modification		Outstanding
Recorded
Investment
Post-Modification		Interest
Income
Recognized
Consumer real estate1$134 $135 $7 
Total1$134 $135 $7 
December 31, 2021
Commercial, financial and agriculture1$38 $37 $4 
Commercial real estate55,151 4,890 230 
Consumer real estate4222 187 5 
Consumer installment113 1 — 
Total11$5,424 $5,115 $239 
December 31, 2020
Commercial, financial and agriculture1$12 $9 $2 
Commercial real estate72,067 2,042 40 
Consumer installment11 1 — 
Total9$2,080 $2,052 $42 
The TDRs presented above increased the ACL $22 thousand and $1.6 million and increased the allowance for loan losses $127 thousand and resulted in no charge-offs for the years ended December 31, 2022, 2021, and 2020, respectively.
The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the year ending December 31, 2022, 2021, and 2020 ($ in thousands, except for number of loans).
202220212020
Troubled Debt Restructurings
That Subsequently Defaulted:		Number of
Loans		Recorded
Investment		Number of
Loans		Recorded
Investment		Number of
Loans		Recorded
Investment
Commercial real estate—$— —$— 4$1,121 
Consumer real estate1134 255 —— 
Total1$134 2$55 4$1,121 
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 $22 thousand and $21 thousand and the allowance for loan losses $81 thousand and resulted in no charge-offs for the years ended December 31, 2022, 2021, and 2020 respectively.
The following tables represents the Company’s TDRs at December 31, 2022 and 2021:
December 31, 2022
($ in thousands)Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		 NonaccrualTotal
Commercial, financial and agriculture $49 $— $— $— $49 
Commercial real estate13,561 — — 6,121 19,682 
Consumer real estate1,077 — — 929 2,006 
Consumer installment14 — — — 14 
Total$14,701 $— $— $7,050 $21,751 
Allowance for credit losses$350 $— $— $491 $841 
December 31, 2021
($ in thousands)Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		NonaccrualTotal
Commercial, financial and agriculture$63 $— $— $107 $170 
Commercial real estate3,367 — — 16,858 20,225 
Consumer real estate1,772 — — 1,973 3,745 
Consumer installment18 — — — 18 
Total$5,220 $— $— $18,938 $24,158 
Allowance for loan losses$90 $— $— $4,217 $4,307 
Collateral Dependent Loans Evaluated by Class
The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of December 31, 2022 and 2021:
December 31, 2022
($ in thousands)Real PropertyTotal
Commercial real estate$4,560 $4,560 
Consumer real estate998 998 
Total$5,558 $5,558 
December 31, 2021
($ in thousands)Real PropertyTotal
Commercial real estate$1,712 $1,712 
Consumer real estate1,858 1,858 
Total$3,570 $3,570 
Schedule of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed and Risk Category of Loans by Class of Loans The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at year ends December 31, 2022 and 2021 . Revolving loans converted to term as of year ended December 31, 2022 and 2021 were not material to the total loan portfolio.
($ in thousands)Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2022
20222021202020192018PriorRevolving
Loans		Total
Commercial, financial and agriculture:
Risk Rating
Pass$181,761 $141,174 $55,690 $53,954 $43,441 $52,038 $181 $528,239 
Special mention380 5,188 1,664 — — 412 — 7,644 
Substandard50 — — 34 33 192 — 309 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$182,191 $146,362 $57,354 $53,988 $43,474 $52,642 $181 $536,192 
Commercial real estate:        
Risk Rating
Pass$582,895 $436,661 $305,140 $217,626 $140,682 $368,185 $1,765 $2,052,954 
Special mention672 1,345 3,938 11,643 9,885 16,612 — 44,095 
Substandard50 2,830 908 1,694 4,797 27,935 — 38,214 
Doubtful— — — — — — — — 
Total commercial real estate$583,617 $440,836 $309,986 $230,963 $155,364 $412,732 $1,765 $2,135,263 
Consumer real estate:        
Risk Rating
Pass$325,853 $226,355 $136,052 $59,376 $51,515 $129,923 $112,278 $1,041,352 
Special mention— — — — 823 3,846 — 4,669 
Substandard519 554 1,481 648 1,706 6,894 1,176 12,978 
Doubtful— — — — — — — — 
Total consumer real estate$326,372 $226,909 $137,533 $60,024 $54,044 $140,663 $113,454 $1,058,999 
Consumer installment:
Risk Rating
Pass$18,925 $11,618 $5,031 $2,078 $832 $1,445 $3,725 $43,654 
Special mention— — — — — — — — 
Substandard4 13 24 — 3 5 — 49 
Doubtful— — — — — — — — 
Total consumer installment$18,929 $11,631 $5,055 $2,078 $835 $1,450 $3,725 $43,703 
Total
Pass$1,109,434 $815,808 $501,913 $333,034 $236,470 $551,591 $117,949 $3,666,199 
Special mention1,052 6,533 5,602 11,643 10,708 20,870 — 56,408 
Substandard623 3,397 2,413 2,376 6,539 35,026 1,176 51,550 
Doubtful— — — — — — — — 
Total$1,111,109 $825,738 $509,928 $347,053 $253,717 $607,487 $119,125 $3,774,157 
($ in thousands)Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2021
20212020201920182017PriorRevolving
Loans		Total
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 $2,959,553 
Financing Receivable, Allowance for Credit Loss
The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2022 and the allowance for loan losses for the year ended December 31, 2021:
December 31, 2022
($ in thousands)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 
Initial allowance on PCD loans614 576 113 — 1,303 
Provision for credit losses688 1,742 2,786 134 5,350 
Loans charged-off(259)(72)(204)(683)(1,218)
Recoveries433 591 1,015 701 2,740 
Total ending allowance balance$6,349 $20,389 $11,599 $580 $38,917 
December 31, 2021
($ in thousands)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 loans166 575 372 2 1,115 
Provision for credit losses (1)1,041 (100)(2,314)(83)(1,456)
Loans charged-off(1,662)(3,523)(473)(555)(6,213)
Recoveries433 888 311 562 2,194 
Total ending allowance balance$4,873 $17,552 $7,889 $428 $30,742 
(1)
The negative provision of $1.5 million for credit losses on the consolidated statements of income is net of a $370 thousand provision for credit marks in the Cadence Branches loans acquired for the year ended December 31, 2022.
The Company recorded a $5.4 million, provision for credit losses for the year ended December 31, 2022, compared to $1.5 million, negative provision for credit losses for the year ended December 31, 2021. The 2022 provision for credit losses includes $3.9 million associated with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments. A $1.3 million initial allowance was recorded on PCD loans acquired in the BBI merger. The negative provision for 2021 was composed of a $1.5 million decrease in the ACL for LHFI, net of $370 thousand provision for credit marks on the Cadence Branches loans acquired. The negative provision for credit losses in 2021 was primarily due to the improved macroeconomic outlook for 2021.
The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of December 31, 2022 and 2021. The table also provides additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation ($ in thousands).
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
December 31, 2022
LHFI
Individually evaluated$— $4,560 $998 $— $5,558 
Collectively evaluated536,192 2,130,703 1,058,001 43,703 3,768,599 
Total$536,192 $2,135,263 $1,058,999 $43,703 $3,774,157 
Allowance for Credit Losses     
Individually evaluated$— $— $5 $— $5 
Collectively evaluated6,349 20,389 11,594 580 38,912 
Total$6,349 $20,389 $11,599 $580 $38,917 
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
December 31, 2021
LHFI
Individually evaluated$— $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 $2,959,553 
Allowance for Loan Losses     
Individually evaluated$— $4 $2 $— $6 
Collectively evaluated4,873 17,548 7,887 428 30,736 
Total$4,873 $17,552 $7,889 $428 $30,742