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LOANS (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table shows the composition of the loan portfolio:
($ in thousands)June 30, 2023December 31, 2022
Loans held for sale
Mortgage loans held for sale$6,602 $4,443 
Total LHFS$6,602 $4,443 
Loans held for investment
Commercial, financial and agriculture (1)$790,295 $536,192 
Commercial real estate2,915,886 2,135,263 
Consumer real estate1,249,295 1,058,999 
Consumer installment55,449 43,703 
Total loans5,010,925 3,774,157 
Less allowance for credit losses(52,614)(38,917)
Net LHFI$4,958,311 $3,735,240 
____________________________________________________________
(1)
Loan balance includes $514 thousand and $710 thousand in Paycheck Protection Program (“PPP”) loans as of June 30, 2023 and December 31, 2022, respectively.
Schedule of Company's Loans that are Past Due and Nonaccrual Loans Including PCD Loans
The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans:
($ in thousands)June 30, 2023
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)$1,549 $— $221 $1,066 $2,836 $790,295 $172 
Commercial real estate1,278 — 9,196 793 11,267 2,915,886 5,030 
Consumer real estate1,899 — 3,324 1,419 6,642 1,249,295 1,456 
Consumer installment177 — 18 — 195 55,449 — 
Total$4,903 $— $12,759 $3,278 $20,940 $5,010,925 $6,658 
___________________________________________________________
(1)
Total loan balance includes $514 thousand in PPP loans as of June 30, 2023.
December 31, 2022
($ 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 $710 thousand in PPP loans as of December 31, 2022.
Summary of Carrying Amount of Loans Acquired in Business Combination with more than Insignificant Deterioration of Credit Quality since Origination
The following table shows the carrying amount of loans acquired in the BBI and HSBI acquisitions for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination:
($ in thousands)BBIHSBI
Purchase price of loans at acquisition$27,669 $52,356 
Allowance for credit losses at acquisition1,303 3,176 
Non-credit discount (premium) at acquisition530 2,325 
Par value of acquired loans at acquisition$29,502 $57,857 
Schedule of Troubled Debt Restructurings The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:
($ in thousands)Payment ModificationPercentage of Total Loans Held for Investment
Consumer real estate$60 — %
Total$60 — %
The following table presents LHFI by class modified as TDRs that occurred during the three and six months ended June 30, 2022.
($ 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
The TDRs presented above increased the ACL $0 and resulted in no charge-offs for the three months period ended June 30, 2022.
($ 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
The TDRs presented above increased the ACL $0 and resulted in no charge-offs for the six months period ended June 30, 2022.
The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification.
($ in thousands, except for number of loans)Six Months Ended June 30,
Troubled Debt Restructurings
That Subsequently Defaulted:
2022
Number of
Loans		Recorded
Investment
Commercial real estate3$4,562 
Consumer real estate3133 
Total6$4,695 
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 $1.5 million and resulted in no charge-offs for the six months period ended June 30, 2022.
The following tables represents the Company’s TDRs at December 31, 2022:
December 31, 2022Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		NonaccrualTotal
($ in thousands)
Commercial, financial and agriculture$49$—$—$—$49
Commercial real estate13,561——6,12119,682
Consumer real estate1,077——9292,006
Consumer installment14———14
Total$14,701$—$—$7,050$21,751
Allowance for credit losses$350$—$—$491$841
Collateral Dependent Loans Evaluated by Class
The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of June 30, 2023 and December 31, 2022:
June 30, 2023
($ in thousands)Real PropertyMiscellaneousTotal
Commercial, financial and agriculture$— $172 $172 
Commercial real estate5,030 — 5,030 
Consumer real estate1,574 — 1,574 
Total$6,604 $172 $6,776 
December 31, 2022
($ in thousands)Real PropertyTotal
Commercial real estate$4,560$4,560
Consumer real estate998998
Total$5,558$5,558
Schedule of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed and Risk Category of Loans by Class of Loans
The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at June 30, 2023 and December 31, 2022. Revolving loans converted to term as of the six months ended June 30, 2023 and December 31, 2022 were not material to the total loan portfolio.
As of June 30, 2023Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ in thousands)20232022202120202019Prior
Commercial, financial and
agriculture:
Risk Rating
Pass$63,198 $153,935 $119,982 $55,578 $42,981 $74,566 $274,501 $784,741 
Special mention— — — 179 1,199 1,473 127 2,978 
Substandard58 427 163 317 638 948 25 2,576 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$63,256 $154,362 $120,145 $56,074 $44,818 $76,987 $274,653 $790,295 
Current period gross write offs$— $11 $95 $2 $206 $110 $— $424 
Commercial real estate:
Risk Rating
Pass$115,044 $801,165 $591,882 $397,524 $278,946 $619,859 $3,546 $2,807,966 
Special mention— 681 10,427 3,263 10,434 18,817 — 43,622 
Substandard— 6,981 3,389 838 5,334 47,756 — 64,298 
Doubtful— — — — — — — — 
Total commercial real estate$115,044 $808,827 $605,698 $401,625 $294,714 $686,432 $3,546 $2,915,886 
Current period gross write offs$— $— $— $— $— $— $— $— 
Consumer real estate:
Risk Rating
Pass$87,387 $369,865 $236,851 $139,610 $64,194 $182,654 $149,200 $1,229,761 
Special mention— 76 — — 90 4,126 2,027 6,319 
Substandard— 119 527 1,647 763 8,902 1,257 13,215 
Doubtful— — — — — — — — 
Total consumer real estate$87,387 $370,060 $237,378 $141,257 $65,047 $195,682 $152,484 $1,249,295 
Current period gross write offs$— $21 $— $— $— $3 $— $24 
Consumer installment:
Risk Rating
Pass$13,765 $17,183 $9,991 $4,416 $1,940 $1,618 $6,444 $55,357 
Special mention— — — 1 — — — 1 
Substandard— 9 19 42 20 1 — 91 
Doubtful— — — — — — — — 
Total consumer installment$13,765 $17,192 $10,010 $4,459 $1,960 $1,619 $6,444 $55,449 
Current period gross write offs$47 $370 $131 $128 $66 $243 $33 $1,018 
Total
Pass$279,394 $1,342,148 $958,706 $597,128 $388,061 $878,697 $433,691 $4,877,825 
Special mention— 757 10,427 3,443 11,723 24,416 2,154 52,920 
Substandard58 7,536 4,098 2,844 6,755 57,607 1,282 80,180 
Doubtful— — — — — — — — 
Total$279,452 $1,350,441 $973,231 $603,415 $406,539 $960,720 $437,127 $5,010,925 
Current period gross write offs$47 $402 $226 $130 $272 $356 $33 $1,466 
As of December 31, 2022Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ in thousands)20222021202020192018Prior
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 $3,774,157 
Financing Receivable, Allowance for Credit Loss
The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2023 and 2022:
($ in thousands)Three Months Ended June 30, 2023
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$9,443 $28,052 $14,201 $754 $52,450 
Provision for credit losses(64)603 (118)579 1,000 
Loans charged-off(421)— (24)(681)(1,126)
Recoveries 14 71 64 141 290 
Total ending allowance balance$8,972 $28,726 $14,123 $793 $52,614 
($ in thousands)Six Months Ended June 30, 2023
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$6,349 $20,389 $11,599 $580 $38,917 
Initial allowance on PCD loans727 2,260 182 7 3,176 
Provision for credit losses2,263 5,991 2,284 962 11,500 
Loans charged-off(424)— (24)(1,018)(1,466)
Recoveries57 86 82 262 487 
Total ending allowance balance$8,972 $28,726 $14,123 $793 $52,614 
($ 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)
Recoveries44 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)6296272450
Loans charged-off(146)(27)(147)(337)(657)
Recoveries975149483061,865
Total ending allowance balance$4,511$18,668$8,752$469$32,400
The Company recorded a $11.5 million provision for credit losses for the six months ended June 30, 2023, compared to $450 thousand provision for the same period in 2022. The initial ACL on PCD loans recorded in March 2023, of $3.2 million was related to the HSBI acquisition. The 2023 provision for credit losses includes $10.7 million associated
with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments acquired in the HSBI merger.
The Company recorded a $1.0 million provision for credit losses for the three months ended June 30, 2023, compared to $450 thousand provision for the same periods in 2022. The increase in the provision for the three months ended June 30, 2023 is attributed to loan growth.
The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2023 and December 31, 2022.
($ in thousands)
June 30, 2023Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
LHFI
Individually evaluated$172 $5,030 $1,574 $— $6,776 
Collectively evaluated790,123 2,910,856 1,247,721 55,449 5,004,149 
Total$790,295 $2,915,886 $1,249,295 $55,449 $5,010,925 
Allowance for Credit Losses     
Individually evaluated$— $— $36 $— $36 
Collectively evaluated8,972 28,726 14,087 793 52,578 
Total$8,972 $28,726 $14,123 $793 $52,614 
($ in thousands)
December 31, 2022Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
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