LOANS (Tables)

9 Months Ended

Sep. 30, 2020

LOANS

Schedule of Company's loans that are past due and nonaccrual loans including PCI loans

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as nonaccrual including PCI loans.

	September 30, 2020
	Past Due		Past Due 90						Total
	30 to 89		Days or More						Past Due,
	Days and		and						Non accrual		Total
($ in thousands)	Accruing		Still Accruing		Non accrual		PCI		and PCI		Loans
Commercial, financial and agriculture(1)	$	815	$	—	$	2,737	$	235	$	3,787	$	576,812
Commercial real estate		11,123		1,081		21,445		3,486		37,135		1,646,325
Consumer real estate		2,848		1,306		2,660		6,697		13,511		874,640
Consumer installment		229		9		36		4		278		42,332
Lease financing receivable		—		—		—		—		—		2,478
Obligations of states and subdivisions		—		—		—		—		—		13,345
Total	$	15,015	$	2,396	$	26,878	$	10,422	$	54,711	$	3,155,932

(1) Total loan balance as of September 30, 2020 includes $260.2 million in PPP loans.

	December 31,2019
			Past Due 90						Total
	Past Due		Days or						Past Due,
	30 to 89		More and Still						Non accrual		Total
($ in thousands)	Days		Accruing		Non accrual		PCI		and PCI		Loans
Commercial, financial and agriculture	$	515	$	61	$	2,137	$	97	$	2,810	$	332,600
Commercial real estate		2,447		1,046		22,441		3,844		29,778		1,387,207
Consumer real estate		4,569		1,608		1,902		8,148		16,227		814,282
Consumer installment		226		—		260		6		492		42,458
Lease financing receivable		—		—		—		—		—		3,095
Obligations of states and subdivisions		—		—		—		—		—		20,716
Total	$	7,757	$	2,715	$	26,740	$	12,095	$	49,307	$	2,600,358

Schedule of Payments receivable

The following presents information regarding the contractually required payments receivable, cash flows expected to be collected and the estimated fair value of PCI loans acquired in the acquisitions from 2019 and 2020.

($ in thousands)	FPB		FFB		SWG		Total
Contractually required payments at acquisition	$	4,715	$	947	$	882	$	6,544
Cash flows expected to be collected at acquisition		4,295		955		570		5,820
Fair value of loans at acquisition		3,916		809		526		5,251

Schedule of purchased credit impaired loans

Changes in the carrying amount and accretable yield for purchased credit impaired loans were as follows at September 30, 2020 and 2019 ($ in thousands):

	September 30, 2020		September 30, 2019
	Accretable		Accretable
	Yield		Yield
Balance at beginning of period, January 1	$	3,714	$	3,835
Additions, including transfers from non-accretable		569		452
Accretion		(738)		(845)
Balance at end of period, September 30	$	3,545	$	3,442

Schedule of impaired loans

The following tables provide detail of impaired loans broken out according to class as of September 30, 2020 and December 31, 2019. The following tables do not include PCI loans.  The recorded investment included in the following table represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. Recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

September 30, 2020

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
($ in thousands)	Investment		Balance		Allowance		YTD		YTD
Impaired loans with no related allowance:
Commercial, financial and agriculture	$	259	$	261	$	—	$	264	$	2
Commercial real estate		12,634		12,830		—		13,283		10
Consumer real estate		830		875		—		816		5
Consumer installment		25		26		—		15		1
Total	$	13,748	$	13,992	$	—	$	14,378	$	18
Impaired loans with a related allowance:
Commercial, financial and agriculture	$	2,528	$	2,539	$	1,285	$	2,168	$	44
Commercial real estate		12,514		12,896		4,804		12,258		99
Consumer real estate		944		1,000		189		801		19
Consumer installment		28		29		16		106		—
Total	$	16,014	$	16,464	$	6,294	$	15,333	$	162
Total impaired loans:
Commercial, financial and agriculture	$	2,787	$	2,800	$	1,285	$	2,432	$	46
Commercial real estate		25,148		25,726		4,804		25,541		109
Consumer real estate		1,774		1,875		189		1,617		24
Consumer installment		53		55		16		121		1
Total Impaired Loans	$	29,762	$	30,456	$	6,294	$	29,711	$	180

December 31, 2019

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
($ in thousands)	Investment		Balance		Allowance		YTD		YTD
Impaired loans with no related allowance:
Commercial, financial and agriculture	$	59	$	62	$	—	$	294	$	7
Commercial real estate		13,556		13,671		—		10,473		591
Consumer real estate		542		594		—		2,173		—
Consumer installment		21		21		—		23		—
Total	$	14,178	$	14,348	$	—	$	12,963	$	598
Impaired loans with a related allowance:
Commercial, financial and agriculture	$	2,434	$	2,434	$	1,182	$	2,039	$	13
Commercial real estate		12,428		12,563		3,021		10,026		49
Consumer real estate		639		657		141		560		3
Consumer installment		260		260		80		164		2
Total	$	15,761	$	15,914	$	4,424	$	12,789	$	67
Total impaired loans:
Commercial, financial and agriculture	$	2,493	$	2,496	$	1,182	$	2,333	$	20
Commercial real estate		25,984		26,234		3,021		20,499		640
Consumer real estate		1,181		1,251		141		2,733		3
Consumer installment		281		281		80		187		2
Total Impaired Loans	$	29,939	$	30,262	$	4,424	$	25,752	$	665

Schedule of troubled debt restructurings

The following table presents loans by class modified as troubled debt restructurings (TDRs) that occurred during the three months and nine months ended September 30, 2020 and 2019 ($ in thousands, except for number of loans).

	Three Months Ended September 30,
		Outstanding		Outstanding
		Recorded		Recorded
	Number of	Investment		Investment
2020	Loans	Pre-Modification		Post-Modification
Commercial real estate	2	$	573	$	602
Total	2	$	573	$	602
2019
Commercial, financial and agriculture	3	$	315	$	313
Commercial real estate	5		14,154		14,154
Consumer real estate	1		46		41
Consumer installment	1		6		6
Total	10	$	14,521	$	14,514

The TDRs presented above increased the allowance for loan losses $29 thousand and $2.3 million and resulted in no charge-offs for the three months period ended September 30, 2020 and 2019, respectively.

($ in thousands, except for number of loans)	Nine Months Ended September 30,
		Outstanding		Outstanding
		Recorded		Recorded
	Number of	Investment		Investment
2020	Loans	Pre-Modification		Post-Modification
Commercial, financial and agriculture	2	$	47	$	46
Commercial real estate	5		1,506		1,530
Total	7	$	1,553	$	1,576
2019
Commercial, financial and agriculture	5	$	970	$	958
Commercial real estate	7		14,244		14,240
Consumer real estate	1		46		41
Consumer installment	1		6		6
Total	14	$	15,266	$	15,245

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans).

	Nine months ended			Nine months ended
	September 30, 2020			September 30, 2019
Troubled Debt Restructurings	Number of	Recorded		Number of	Recorded
That Subsequently Defaulted:	Loans	Investment		Loans	Investment
Commercial, financial and agriculture	—	$	—	3	$	427
Commercial real estate	4		2,291	11		17,267
Consumer real estate	—		—	2		158
Consumer installment	1		3	—		—
Total	5	$	2,294	16	$	17,852

The following tables represents the Company’s TDRs at September 30, 2020 and December 31, 2019:

					Past Due 90
September 30, 2020	Current		Past Due		days and still
($ in thousands)	Loans		30‑89		accruing		Nonaccrual		Total
Commercial, financial and agriculture	$	30	$	37	$	—	$	1,495	$	1,562
Commercial real estate		4,641		29		—		19,439		24,109
Consumer real estate		1,849		—		—		2,695		4,544
Consumer installment		24		3		—		—		27
Total	$	6,544	$	69	$	—	$	23,629	$	30,242
Allowance for loan losses	$	137	$	29	$	—	$	3,780	$	3,946

					Past Due 90
December 31, 2019	Current		Past Due		days and still
($ in thousands)	Loans		30‑89		accruing		Nonaccrual		Total
Commercial, financial and agriculture	$	583	$	64	$	—	$	1,062	$	1,709
Commercial real estate		4,299		809		109		19,991		25,208
Consumer real estate		1,905		112		58		2,940		5,015
Consumer installment		37		—		—		—		37
Total	$	6,824	$	985	$	167	$	23,993	$	31,969
Allowance for loan losses	$	128	$	—	$	—	$	1,997	$	2,125

Schedule of risk category of loans by class of loans

As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

	Commercial,
September 30, 2020	Financial and		Commercial		Consumer		Consumer
($ in thousands)	Agriculture		Real Estate		Real Estate		Installment		Total
Pass	$	575,621	$	1,872,964	$	541,829	$	46,214	$	3,036,628
Special Mention		1,819		37,284		1,573		24		40,700
Substandard		10,585		61,441		14,105		161		86,292
Doubtful		1,963		23		—		—		1,986
Subtotal	$	589,988	$	1,971,712	$	557,507	$	46,399	$	3,165,606
Less:
Unearned Discount		—		9,674		—		—		9,674
Loans, net of unearned discount	$	589,988	$	1,962,038	$	557,507	$	46,399	$	3,155,932

	Commercial,
December 31, 2019	Financial and		Commercial		Consumer		Consumer
($ in thousands)	Agriculture		Real Estate		Real Estate		Installment		Total
Pass	$	327,205	$	1,645,496	$	499,426	$	41,008	$	2,513,135
Special Mention		3,493		8,876		1,194		21		13,584
Substandard		10,972		50,554		13,244		397		75,167
Doubtful		16		77		—		—		93
Subtotal	$	341,686	$	1,705,003	$	513,864	$	41,426	$	2,601,979
Less:
Unearned Discount		—		1,621		—		—		1,621
Loans, net of unearned discount	$	341,686	$	1,703,382	$	513,864	$	41,426	$	2,600,358

Schedule of allowance for loan and losses

The following table presents the activity in the allowance for loan losses by portfolio segment for the three and nine months period ended September 30, 2020 and 2019:

	Three months ended September 30,2020
	Commercial,								Paycheck
	Financial and		Commercial		Consumer		Installment		Protection
($ in thousands)	Agriculture		Real Estate		Real Estate		and Other		Program		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	5,208	$	18,526	$	3,741	$	459	$	130	$	—	$	28,064
Provision for loan losses		607		5,371		1,077		(4)		(130)		—		6,921
Loans charged-off		(78)		(769)		(55)		(32)		—		—		(934)
Recoveries		37		18		17		133		—		—		205
Total ending allowance balance	$	5,774	$	23,146	$	4,780	$	556	$	—	$	—	$	34,256

	Nine months ended September 30,2020
	Commercial,		Commercial		Consumer		Installment		Paycheck
	Financial and		Real		Real		and		Protection
($ in thousands)	Agriculture		Estate		Estate		Other		Program		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	3,043	$	8,836	$	1,694	$	296	$	—	$	39	$	13,908
Provision for loan losses		2,936		15,096		3,057		578		—		(39)		21,628
Loans charged-off		(342)		(1,165)		(151)		(645)		—		—		(2,303)
Recoveries		137		379		180		327		—		—		1,023
Total ending allowance balance	$	5,774	$	23,146	$	4,780	$	556	$	—	$	—	$	34,256

	Three months ended September 30,2019
	Commercial,
	Financial and		Commercial		Consumer		Installment
($ in thousands)	Agriculture		Real Estate		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	2,432	$	7,872	$	1,489	$	250	$	48	$	12,091
Provision for loan losses		(82)		787		294		18		(43)		974
Loans charged-off		(17)		66		(174)		(76)		—		(201)
Recoveries		24		9		64		82		—		179
Total ending allowance balance	$	2,357	$	8,734	$	1,673	$	274	$	5	$	13,043

	Nine months ended September 30,2019
	Commercial,		Commercial		Consumer		Installment
	Financial and		Real		Real		and
($ in thousands)	Agriculture		Estate		Estate		Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	2,060	$	6,258	$	1,743	$	201	$	(197)	$	10,065
Provision for loan losses		269		2,454		(19)		(18)		202		2,888
Loans charged-off		(23)		—		(216)		(143)		—		(382)
Recoveries		51		22		165		234		—		472
Total ending allowance balance	$	2,357	$	8,734	$	1,673	$	274	$	5	$	13,043

Schedule of loans and allowance for loan losses

	Commercial,						Installment
September 30, 2020	Financial and		Commercial		Consumer		and
($ in thousands)	Agriculture		Real Estate		Real Estate		Other		Unallocated		Total
Loans
Individually evaluated	$	2,787	$	25,148	$	1,774	$	53	$	—	$	29,762
Collectively evaluated		586,939		1,977,139		500,317		46,322		—		3,110,717
PCI Loans		262		9,390		5,777		24		—		15,453
Total	$	589,988	$	2,011,677	$	507,868	$	46,399	$	—	$	3,155,932
Allowance for Loan Losses
Individually evaluated	$	1,285	$	4,804	$	189	$	16	$	—	$	6,294
Collectively evaluated		4,489		18,342		4,591		540		—		27,962
Total	$	5,774	$	23,146	$	4,780	$	556	$	—	$	34,256

	Commercial,						Installment
December 31, 2019	Financial and		Commercial		Consumer		and
($ in thousands)	Agriculture		Real Estate		Real Estate		Other		Unallocated		Total
Loans
Individually evaluated	$	2,493	$	25,984	$	1,181	$	281	$	—	$	29,939
Collectively evaluated		339,003		1,773,934		398,471		41,112		—		2,552,520
PCI Loans		191		10,471		7,204		33		—		17,899
Total	$	341,687	$	1,810,389	$	406,856	$	41,426	$	—	$	2,600,358
Allowance for Loan Losses
Individually evaluated	$	1,182	$	3,021	$	141	$	80	$	—	$	4,424
Collectively evaluated		1,861		5,815		1,553		216		39		9,484
Total	$	3,043	$	8,836	$	1,694	$	296	$	39	$	13,908