XML 32 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
LOANS
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
LOANS LOANS
The Company uses four different categories to classify loans in its portfolio based on the underlying collateral securing each loan. The loans grouped together in each category have been determined to share similar risk characteristics with respect to credit quality. Those four categories are commercial, financial and agriculture, commercial real estate, consumer real estate, consumer installment;
Commercial, financial and agriculture - Commercial, financial and agriculture loans include loans to business entities issued for commercial, industrial, or other business purposes. This type of commercial loan shares a similar risk characteristic in that unlike commercial real estate loans, repayment is largely dependent on cash flow generated from the operation of the business.
Commercial real estate - Commercial real estate loans are grouped as such because repayment is mainly dependent upon either the sale of the real estate, operation of the business occupying the real estate, or refinance of the debt obligation. This includes both owner-occupied and non-owner occupied CRE secured loans, because they share similar risk characteristics related to these variables.
Consumer real estate - Consumer real estate loans consist primarily of loans secured by 1-4 family residential properties and/or residential lots. This includes loans for the purpose of constructing improvements on the residential property, as well as home equity lines of credit.
Consumer installment - Installment and other loans are all loans issued to individuals that are not for any purpose related to operation of a business, and not secured by real estate. Repayment on these loans is mostly dependent on personal income, which may be impacted by general economic conditions.
The composition of the loan portfolio as of December 31, 2024 and December 31, 2023, is summarized below:
($ in thousands)December 31, 2024December 31, 2023
Loans held for sale
Mortgage loans held for sale$3,687 $2,914 
Total LHFS$3,687 $2,914 
  
Loans held for investment  
Commercial, financial, and agriculture (1)$740,193 $800,324 
Commercial real estate3,323,681 3,059,155 
Consumer real estate1,298,973 1,252,795 
Consumer installment44,384 57,768 
Total loans5,407,231 5,170,042 
Less allowance for credit losses (56,205)(54,032)
Net LHFI$5,351,026 $5,116,010 
______________________________________
(1)Loan balance includes $87 thousand and $386 thousand in PPP loans as of December 31, 2024 and 2023, respectively.
Loans held for sale consist of mortgage loans originated by the Bank and sold into the secondary market. Commitments from investors to purchase the loans are obtained upon origination.
Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At December 31, 2024 and 2023, accrued interest receivable for LHFI totaled $25.8 million and $24.7 million, respectively, with no related ACL and was reported in interest receivable on the accompanying Consolidated Balance Sheet.
Nonaccrual and Past Due LHFI
Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a
loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.
The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including PCD loans:
December 31, 2024
($ 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)$498 $— $2,515 $208 $3,221 $740,193 $120 
Commercial real estate2,249 — 9,093 345 11,687 3,323,681 3,698 
Consumer real estate5,941 1,641 5,575 2,498 15,655 1,298,973 1,254 
Consumer installment212 — 104 — 316 44,384 7 
Total$8,900 $1,641 $17,287 $3,051 $30,879 $5,407,231 $5,079 
______________________________________
(1)Total loan balance includes $87 thousand in PPP loans as of December 31, 2024.
December 31, 2023
($ 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)$2,043 $313 $353 $965 $3,674 $800,324 $465 
Commercial real estate1,698 630 3,790 647 6,765 3,059,155 410 
Consumer real estate3,992 220 1,806 3,098 9,116 1,252,795 680 
Consumer installment180 — 31 — 211 57,768 — 
Total$7,913 $1,163 $5,980 $4,710 $19,766 $5,170,042 $1,555 
______________________________________
(1)Total loan balance includes $386 thousand in PPP loans as of December 31, 2023.
Acquired Loans
In connection with the acquisitions of BBI and HSBI, the Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution's previously recorded allowance for credit losses. Acquired loans are accounted for under ASC 326, Financial Instruments - Credit Losses.
The fair value for acquired loans recorded at the time of acquisition is based upon several factors including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of premium or discount to the unpaid principal balance of each acquired loan. As it relates to acquired PCD loans, the net premium or net discount is adjusted to reflect the Company's allowance for credit losses (“ACL”) recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the loan. As it relates to acquired loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of the fair value adjustments are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the average remaining life of those loans. The Company records an ACL for non-PCD loans at the
time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans.
The estimated fair value of the non-PCD loans acquired in the BBI acquisition was $460.0 million, which is net of a $8.8 million discount. The gross contractual amounts receivable of the acquired non-PCD loans at acquisition was approximately $468.8 million, of which $6.4 million is the amount of contractual cash flows not expected to be collected.
The estimated fair value of the non-PCD acquired in the HSBI acquisition was $1.091 billion, which is net of a $33.7 million discount. The gross contractual amounts receivable of the acquired non-PCD loans at acquisition was approximately $1.125 billion, of which $16.5 million is the amount of contractual cash flows not expected to be collected.
The following table shows the carrying amount of loans acquired in the BBI and HSBI acquisition transaction for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination:
($ 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 
As of December 31, 2024 and 2023, the amortized cost of the Company’s PCD loans totaled $47.1 million and $57.8 million, respectively, which had an estimated ACL of $2.1 million and $3.7 million, respectively.
Loan Modifications
The Company adopted ASU No. 2022-02 effective January 1, 2023. These amendments eliminate the TDR recognition and measurement guidance and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.
Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.
In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.
The following table presents the amortized cost basis of loans at December 31, 2024 and December 31, 2023 that were both experiencing financial difficulty and modified during 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:
($ in thousands)
December 31, 2024Payment ModificationTerm ExtensionPayment DelayCombination Term Extension and Payment ModificationPercentage of Total Loans Held for Investment
Commercial, financial, and agriculture$— $100 $40 5380.09 %
Commercial real estate— 3,172 — — 0.10 %
Consumer real estate778 — — — 0.06 %
Total$778 $3,272 $40 5380.09 %
December 31, 2023Term ExtensionPercentage of Total Loans Held for Investment
Commercial real estate$581 0.02 %
Total$581 0.02 %
The following table details the financial effect of the loan modification presented above to borrowers experiencing financial difficulty for the periods presented:
December 31, 2024Payment ModificationTerm ExtensionPayment DelayCombination Term Extension and Payment Modification
Commercial, financial, and agriculture
One loan with maturity date extension of 90 days.
One loan with payment deferred for 90 days.
One loan with maturity date extension of 36 months, and re-amortization of 180 months.
Commercial real estate
Two loans with maturity date extension of 90 days.
Consumer real estate
Two loans were converted from principal and interest to interest only for 6 months.
The Company has not committed to lend additional amounts to the borrowers included in the previous table.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months as of December 31, 2024. There were no modified loans that were past due as of December 31, 2023.
($ in thousands)
December 31, 202430-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Commercial, financial and agriculture$40 $— 100$140 
Commercial real estate2,453 — 719 3,172 
Total$2,493 $— 819$3,312 
During the year ended December 31, 2024, the Company had payment delay balances of $40 thousand at default for LHFI in commercial, financial and agriculture portfolio that has a payment default and were modified within the twelve months prior to that default to borrowers experiencing financial difficulty.
Collateral Dependent Loans
The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of December 31, 2024 and 2023:
($ in thousands)
December 31, 2024Real PropertyEquipmentMiscellaneousTotal
Commercial financial, and agriculture$— $335 $759 $1,094 
Commercial real estate3,697 — — 3,697 
Consumer real estate2,412 — — 2,412 
Consumer installment— — 7 7 
Total$6,109 $335 $766 $7,210 
Collateral Value$10,863 $— $812 
December 31, 2023Real PropertyEquipmentMiscellaneousTotal
Commercial financial, and agriculture$— $496 $918 $1,414 
Commercial real estate710 — — 710 
Consumer real estate778 — — 778 
Total$1,488 $496 $918 $2,902 
Collateral Value$3,675 $237 $1,293 
A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures the Company’s collateral dependent LHFI:
•Commercial, financial and agriculture – Loans within these loan classes are secured by equipment, inventory accounts, and other non-real estate collateral.
•Commercial real estate – Loans within these loan classes are secured by commercial real property.
•Consumer real estate - Loans within these loan classes are secured by consumer real property.
•Consumer installment - Loans within these loan classes are secured by consumer goods, equipment, and non-real estate collateral.
There have been no significant changes to the collateral that secures these financial assets during the period.
Loan Participations
The Company has loan participations, which qualify as participating interest, with other financial institutions. As of December 31, 2024, these loans totaled $328.9 million, of which $184.2 million had been sold to other financial institutions and $144.7 million was purchased by the Company. As of December 31, 2023, these loans totaled $304.0 million, of which $165.9 million had been sold to other financial institutions and $138.1 million was purchased by the company. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involving no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree.
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings:
Pass: Loans classified as pass are deemed to possess average to superior credit quality, requiring no more than normal attention.
Special Mention: Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.
Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
The above classifications were the most current available as of December 31, 2024, and were generally updated within the prior year.
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, 2024 and 2023. Revolving loans converted to term as of year ended December 31, 2024 and 2023 were not material to the total loan portfolio.
($ in thousands)Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024
20242023202220212020PriorRevolving
Loans		Total
Commercial, financial and agriculture:
Risk Rating
Pass$103,910 $80,584 $104,382 $81,209 $30,397 $74,472 $249,088 $724,042 
Special mention— 302 31 850 2,232 839 513 4,767 
Substandard1,536 1,645 497 625 601 1,682 4,798 11,384 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$105,446 $82,531 $104,910 $82,684 $33,230 $76,993 $254,399 $740,193 
Current period gross write offs$10 $103 $337 $312 $14 $397 $— $1,173 
Commercial real estate:        
Risk Rating
Pass$511,293 $400,874 $804,242 $497,248 $331,632 $691,589 $2,946 $3,239,824 
Special mention2,221 191 950 10,283 2,835 15,246 — 31,726 
Substandard580 1,291 13,079 4,754 1,493 30,934 — 52,131 
Doubtful— — — — — — — — 
Total commercial real estate$514,094 $402,356 $818,271 $512,285 $335,960 $737,769 $2,946 $3,323,681 
Current period gross write offs$— $70 $— $20 $— $71 $— $161 
Consumer real estate:        
Risk Rating
Pass$181,376 $139,557 $302,890 $192,508 $114,554 $183,973 $160,289 $1,275,147 
Special mention98 530 634 484 — 1,012 717 3,475 
Substandard610 1,566 3,019 1,356 2,281 9,110 2,409 20,351 
Doubtful— — — — — — — — 
Total consumer real estate$182,084 $141,653 $306,543 $194,348 $116,835 $194,095 $163,415 $1,298,973 
Current period gross write offs$— $11 $358 $— $— $153 $— $522 
Consumer installment:
Risk Rating
Pass$13,871 $10,725 $6,239 $4,360 $1,340 $1,315 $6,358 $44,208 
Special mention— — — — — — — — 
Substandard— 56 82 7 19 — 12 176 
Doubtful— — — — — — — — 
Total consumer installment$13,871 $10,781 $6,321 $4,367 $1,359 $1,315 $6,370 $44,384 
Current period gross write offs$274 $361 $212 $118 $77 $953 $43 $2,038 
Total
Pass$810,450 $631,740 $1,217,753 $775,325 $477,923 $951,349 $418,681 $5,283,221 
Special mention2,319 1,023 1,615 11,617 5,067 17,097 1,230 39,968 
Substandard2,726 4,558 16,677 6,742 4,394 41,726 7,219 84,042 
Doubtful— — — — — — — — 
Total$815,495 $637,321 $1,236,045 $793,684 $487,384 $1,010,172 $427,130 $5,407,231 
Current period gross write offs$284 $545 $907 $450 $91 $1,574 $43 $3,894 
($ in thousands)Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023
20232022202120202019PriorRevolving
Loans		Total
Commercial, financial and agriculture:
Risk Rating
Pass$102,263 $150,420 $113,487 $47,313 $36,065 $64,020 $281,646 $795,214 
Special mention— — — 141 797 3 10 951 
Substandard451 330 121 185 550 1,894 628 4,159 
Doubtful— — — — — — — — 
Total commercial, financial and agriculture$102,714 $150,750 $113,608 $47,639 $37,412 $65,917 $282,284 $800,324 
Current period gross write offs14 51 225 139 206 110 — 745 
Commercial real estate:        
Risk Rating
Pass$385,954 $825,505 $558,742 $377,085 $253,746 $569,428 $6,397 $2,976,857 
Special mention— 660 6,118 3,111 9,545 22,648 — 42,082 
Substandard136 7,293 393 566 5,427 26,401 — 40,216 
Doubtful— — — — — — — — 
Total commercial real estate$386,090 $833,458 $565,253 $380,762 $268,718 $618,477 $6,397 $3,059,155 
Current period gross write offs— — 193 — — 57 — 250 
Consumer real estate:        
Risk Rating
Pass$176,144 $334,056 $219,071 $127,539 $59,615 $163,464 $153,821 $1,233,710 
Special mention— 1,081 — — 643 3,246 412 5,382 
Substandard502 404 511 1,559 514 6,988 3,225 13,703 
Doubtful— — — — — — — — 
Total consumer real estate$176,646 $335,541 $219,582 $129,098 $60,772 $173,698 $157,458 $1,252,795 
Current period gross write offs5 19 — — — 25 — 49 
Consumer installment:
Risk Rating
Pass$24,482 $12,408 $7,316 $2,919 $1,213 $1,195 $8,156 $57,689 
Special mention— — — — — — — — 
Substandard— 8 17 42 11 — 1 79 
Doubtful— — — — — — — — 
Total consumer installment$24,482 $12,416 $7,333 $2,961 $1,224 $1,195 $8,157 $57,768 
Current period gross write offs226 567 223 179 156 576 121 2,048 
Total
Pass$688,843 $1,322,389 $898,616 $554,856 $350,639 $798,107 $450,020 $5,063,470 
Special mention— 1,741 6,118 3,252 10,985 25,897 422 48,415 
Substandard1,089 8,035 1,042 2,352 6,502 35,283 3,854 58,157 
Doubtful— — — — — — — — 
Total $689,932 $1,332,165 $905,776 $560,460 $368,126 $859,287 $454,296 $5,170,042 
Current period gross write offs$245 $637 $641 $318 $362 $768 $121 $3,092 
Allowance for Credit Losses (ACL)
The ACL is a valuation account that is deducted from loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of a general allowance for loans that are collectively assessed in pools with similar risk characteristics and a specific allowance for individually assessed loans. The allowance is continuously monitored by management to maintain a level adequate to absorb expected credit losses in the loan portfolio.
The ACL represents the estimated losses for financial assets accounted for on an amortized cost basis. Expected losses are calculated using relevant information, from internal and external sources, about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environment conditions, such as changes in unemployment rates, property values, or other relevant factors. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Expected losses are estimated over the contractual term of the loans, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Loans are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. Expected recovery amounts may not exceed the aggregate of amounts previously charged-off.
The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call code (segments). Segmenting loans by call code will group loans that contain similar types of collateral, purposes, and are usually structured with similar terms making each loan’s risk profile very similar to the rest in that segment. Each of these segments then flows up into one of the four bands (bands), Commercial, Financial, and Agriculture, Commercial Real Estate, Consumer Real Estate, and Consumer Installment. In accordance with the guidance in ASC 326, the Company redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. Construction loans for 1-4 family residential properties with a call code 1A1, and other construction, all land development and other land loans with a call code 1A2 were previously separated between the Commercial Real Estate or Consumer Real Estate bands based on loan type code. Under our ASC 326 methodology 1A1 loans are all defined as part of the Consumer Real Estate band and 1A2 loans are all defined as part of the Commercial Real Estate Band.
The PD calculation analyzes the historical loan portfolio over the given lookback period to identify, by segment, loans that have defaulted. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. The model observes loans over a 12-month window, detecting any events previously defined. This information is then used by the model to calculate annual iterative count-based PD rates for each segment. This process is then repeated for all dates within the historical data range. These averaged PDs are used for an immediate reversion back to the historical mean. The historical data used to calculate this input was captured by the Company from 2009 through the most recent quarter end.
The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model’s calculation also includes a 24-month forecasted PD based on a regression model that calculated a comparison of the Company’s historical loan data to various national economic metrics during the same periods. The results showed the Company’s past losses having a high rate of correlation to unemployment, both regionally and nationally. Using this information, along with the most recently published Wall Street Journal survey of sixty economists’ forecasts predicting unemployment rates out over the next eight quarters, a corresponding future PD can be calculated for the forward-looking 24-month period. This data can also be used to predict loan losses at different levels of stress, including a baseline, adverse and severely adverse economic condition. After the forecast period, PD rates revert to the historical mean of the entire data set.
The LGD calculation is based on actual losses (charge-offs, net recoveries) at a loan level experienced over the entire lookback period aggregated to get a total for each segment of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. Defaults occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event. If there is not a minimum of five past defaults in a loan segment, or less than 15.0% calculated LGD rate, or the total balance at default is less than 1.0% of the balance in the respective call code as of the model run date, a proxy index is used. This index is proprietary to the Company’s ACL modeling vendor derived from loss data of other client institutions similar in organization structure to the Company. The vendor also provides a “crisis” index derived from loss data between the post-recessionary years of 2008-2013 that the Company uses.
The model then uses these inputs in a non-discounted version of DCF methodology to calculate the quantitative portion of estimated losses. The model creates loan level amortization schedules that detail out the expected monthly payments for a loan including estimated prepayments and payoffs. These expected cash flows are discounted back to present value using the loan’s coupon rate instead of the effective interest rate. On a quarterly basis, the Company uses internal credit portfolio data, such as changes in portfolio volume and composition, underwriting practices, and levels of past due loans, nonaccruals and classified assets along with other external information not used in the quantitative calculation to determine if any subjective qualitative adjustments are required so that all significant risks are incorporated to form a sufficient basis to estimate credit losses.
The following table presents the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2024, 2023, and 2022.
December 31, 2024
($ in thousands)Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
Allowance for credit losses:
Beginning balance$8,844 $29,125 $15,260 $803 $54,032 
Provision for credit losses3,213 (173)53 665 3,758 
Loans charged-off(1,173)(161)(522)(2,038)(3,894)
Recoveries319 676 85 1,229 2,309 
Total ending allowance balance$11,203 $29,467 $14,876 $659 $56,205 
December 31, 2023
($ in thousands)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 losses2,164 6,610 3,279 1,697 13,750 
Loans charged-off(745)(250)(49)(2,048)(3,092)
Recoveries349 116 249 567 1,281 
Total ending allowance balance$8,844 $29,125 $15,260 $803 $54,032 
December 31, 2022
($ 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 
The provision for credit losses for the year ended December 31, 2024 was $3.8 million, compared to $13.8 million, for the year ended December 31, 2023, and $5.4 million for the year ended December 31, 2022. The 2024 provision for credit losses decreased $10.0 million, or 72.7% when compared to the same period in 2023 and is attributed to the acquisition of HSBI in January 2023 and was partially offset by loan growth. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were acquired as part of the HSBI acquisition. The initial ACL on PCD loans recorded in March 2023, of $3.2 million was related to the HSBI acquisition. In addition, 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. The 2023 provision for credit losses increased $8.4 million, compared to the same period in 2022. The 2023 increase is related to the HSBI acquisition mentioned above and loan growth. 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.
Total loans were $5.351 billion at December 31, 2024, compared to $5.116 billion at December 31, 2023, and $3.774 billion at December 31, 2022.
The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of December 31, 2024 and 2023. The table also provides additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation.
($ in thousands)Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
December 31, 2024
LHFI
Individually evaluated$1,094 $3,697 $2,412 $7 $7,210 
Collectively evaluated739,099 3,319,984 1,296,561 44,377 5,400,021 
Total$740,193 $3,323,681 $1,298,973 $44,384 $5,407,231 
Allowance for Credit Losses     
Individually evaluated$543 $— $52 $— $595 
Collectively evaluated10,660 29,467 14,824 659 55,610 
Total$11,203 $29,467 $14,876 $659 $56,205 
($ in thousands)Commercial,
Financial and
Agriculture		Commercial
Real Estate		Consumer
Real Estate		Consumer
Installment		Total
December 31, 2023
LHFI
Individually evaluated$1,414 $710 $778 $— $2,902 
Collectively evaluated798,910 3,058,445 1,252,017 57,768 5,167,140 
Total$800,324 $3,059,155 $1,252,795 $57,768 $5,170,042 
Allowance for Credit Losses     
Individually evaluated$408 $— $— $— $408 
Collectively evaluated8,436 29,125 15,260 803 53,624 
Total$8,844 $29,125 $15,260 $803 $54,032