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LOANS (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule of Composition of Loan Portfolio
The following table shows the composition of the loan portfolio:
($ in thousands)September 30, 2023December 31, 2022
Loans held for sale
Mortgage loans held for sale$5,960 $4,443 
Total LHFS$5,960 $4,443 
Loans held for investment
Commercial, financial and agriculture (1)$788,598 $536,192 
Commercial real estate2,995,803 2,135,263 
Consumer real estate1,247,568 1,058,999 
Consumer installment57,831 43,703 
Total loans5,089,800 3,774,157 
Less allowance for credit losses(53,565)(38,917)
Net LHFI$5,036,235 $3,735,240 
____________________________________________________________
(1)
Loan balance includes $450 thousand and $710 thousand in Paycheck Protection Program (“PPP”) loans as of September 30, 2023 and December 31, 2022, respectively.
Schedule of Company's Loans that are Past Due and Nonaccrual Loans Including PCD Loans
The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans:
($ in thousands)September 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)$909 $32 $315 $1,020 $2,276 $788,598 $830 
Commercial real estate1,279 21 8,985 705 10,990 2,995,803 5,063 
Consumer real estate2,706 — 3,135 3,209 9,050 1,247,568 1,366 
Consumer installment126 — 54 — 180 57,831 15 
Total$5,020 $53 $12,489 $4,934 $22,496 $5,089,800 $7,274 
___________________________________________________________
(1)
Total loan balance includes $450 thousand in PPP loans as of September 30, 2023.
December 31, 2022
($ 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)Term ExtensionPercentage of Total Loans Held for Investment
Commercial real estate$413 0.01 %
Total$413 0.01 %
The following tables represents the Company’s TDRs at December 31, 2022:
December 31, 2022Current
Loans		Past Due
30-89		Past Due 90
days and still
accruing		NonaccrualTotal
($ 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$841
Collateral Dependent Loans Evaluated by Class
The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of September 30, 2023 and December 31, 2022:
September 30, 2023
($ in thousands)Real PropertyMiscellaneousTotal
Commercial, financial and agriculture$— $1,081 $1,081 
Commercial real estate5,251 — 5,251 
Consumer real estate1,366 — 1,366 
Consumer installment— 15 15 
Total$6,617 $1,096 $7,713 
December 31, 2022
($ in thousands)Real PropertyTotal
Commercial real estate$4,560$4,560
Consumer real estate998998
Total$5,558$5,558
Schedule of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed and Risk Category of Loans by Class of Loans
The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at September 30, 2023 and December 31, 2022. Revolving loans converted to term as of the nine months ended September 30, 2023 and December 31, 2022 were not material to the total loan portfolio.
As of September 30, 2023Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ in thousands)20232022202120202019Prior
Commercial, financial and
agriculture:
Risk Rating
Pass$84,614 $144,691 $112,186 $51,364 $39,635 $68,845 $282,705 $784,040 
Special mention— — — 159 1,081 966 10 2,216 
Substandard7 411 172 302 588 828 34 2,342 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$84,621 $145,102 $112,358 $51,825 $41,304 $70,639 $282,749 $788,598 
Current period gross write offs$2 $11 $141 $2 $206 $110 $— $472 
Commercial real estate:
Risk Rating
Pass$251,872 $817,602 $577,364 $389,861 $265,386 $594,553 $5,193 $2,901,831 
Special mention— 662 7,283 3,194 10,084 15,061 — 36,284 
Substandard139 7,009 2,194 810 5,472 42,064 — 57,688 
Doubtful— — — — — — — — 
Total commercial real estate$252,011 $825,273 $586,841 $393,865 $280,942 $651,678 $5,193 $2,995,803 
Current period gross write offs$— $— $27 $— $— $— $— $27 
Consumer real estate:
Risk Rating
Pass$133,794 $349,656 $225,167 $134,661 $61,472 $172,799 $150,975 $1,228,524 
Special mention— 711 — — 650 3,321 411 5,093 
Substandard502 116 519 1,565 524 7,675 3,050 13,951 
Doubtful— — — — — — — — 
Total consumer real estate$134,296 $350,483 $225,686 $136,226 $62,646 $183,795 $154,436 $1,247,568 
Current period gross write offs$1 $19 $— $— $— $25 $— $45 
Consumer installment:
Risk Rating
Pass$20,928 $14,667 $8,629 $3,607 $1,654 $1,475 $6,763 $57,723 
Special mention— — — — — — — — 
Substandard— 8 20 64 15 — 1 108 
Doubtful— — — — — — — — 
Total consumer installment$20,928 $14,675 $8,649 $3,671 $1,669 $1,475 $6,764 $57,831 
Current period gross write offs$123 $487 $161 $164 $103 $393 $120 $1,551 
Total
Pass$491,208 $1,326,616 $923,346 $579,493 $368,147 $837,672 $445,636 $4,972,118 
Special mention— 1,373 7,283 3,353 11,815 19,348 421 43,593 
Substandard648 7,544 2,905 2,741 6,599 50,567 3,085 74,089 
Doubtful— — — — — — — — 
Total$491,856 $1,335,533 $933,534 $585,587 $386,561 $907,587 $449,142 $5,089,800 
Current period gross write offs$126 $517 $329 $166 $309 $528 $120 $2,095 
As of December 31, 2022Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
($ 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 $3,774,157 
Financing Receivable, Allowance for Credit Loss
The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2023 and 2022:
($ in thousands)Three Months Ended September 30, 2023
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$8,972 $28,726 $14,123 $793 $52,614 
Provision for credit losses(709)389 919 401 1,000 
Loans charged-off(48)(27)(21)(533)(629)
Recoveries 277 15 142 146 580 
Total ending allowance balance$8,492 $29,103 $15,163 $807 $53,565 
($ in thousands)Nine Months Ended September 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 losses1,554 6,380 3,203 1,363 12,500 
Loans charged-off(472)(27)(45)(1,551)(2,095)
Recoveries334 101 224 408 1,067 
Total ending allowance balance$8,492 $29,103 $15,163 $807 $53,565 
($ in thousands)Three Months Ended September 30, 2022
Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$4,511 $18,668 $8,752 $469 $32,400 
Initial allowance on PCD loans614 576 113 — 1,303 
Provision for credit losses483 1,663 2,135 19 4,300 
Loans charged-off— — (55)(186)(241)
Recoveries292 18 39 245 594 
Total ending allowance balance$5,900 $20,925 $10,984 $547 $38,356 
($ in thousands)Nine Months Ended September 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
Initial allowance on PCD loans614576113—1,303
Provision for credit losses1712,2922,197904,750
Loans charged-off(146)(27)(202)(523)(898)
Recoveries3885329875522,459
Total ending allowance balance$5,900$20,925$10,984$547$38,356
The Company recorded a $12.5 million provision for credit losses for the nine months ended September 30, 2023, compared to $4.8 million provision for the same period in 2022. The increase in the provision for credit losses is related to loan growth across all loan categories. Total loans were $5.090 billion at September 30, 2023, compared to $3.719 billion at September 30, 2022, representing an increase of $1.370 billion, or 36.8%. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were acquired in the HSBI acquisition. 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 acquisition. In 2022, the Company's provision for credit losses includes $3.9 million associated with a day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments and a $1.3 million initial allowance on PCD loans acquired in the BBI acquisition.
The Company recorded a $1.0 million provision for credit losses for the three months ended September 30, 2023, compared to $4.3 million provision for the same periods in 2022. The increase in the provision for the three months ended September 30, 2023 is attributed to loan growth.
The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of September 30, 2023 and December 31, 2022.
($ in thousands)
September 30, 2023Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
LHFI
Individually evaluated$1,081 $5,251 $1,366 $15 $7,713 
Collectively evaluated787,517 2,990,552 1,246,202 57,816 5,082,087 
Total$788,598 $2,995,803 $1,247,568 $57,831 $5,089,800 
Allowance for Credit Losses     
Individually evaluated$217 $90 $— $— $307 
Collectively evaluated8,275 29,013 15,163 807 53,258 
Total$8,492 $29,103 $15,163 $807 $53,565 
($ 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