LOANS (Tables)

12 Months Ended

Dec. 31, 2020

LOANS

Schedule of composition of loan portfolio

The following table shows the composition of the loan portfolio by category ($in thousands):

	December 31, 2020					December 31, 2019
			Percent					Percent
			of					of
	Amount		Total			Amount		Total
Mortgage loans held for sale	$	21,432		0.7	%	$	10,810	0.4	%
Commercial, financial and agriculture (1)		561,341		17.8	%		332,600	12.7	%
Commercial real estate		1,652,993		52.6	%		1,387,207	53.2	%
Consumer real estate		850,206		27.0	%		814,282	31.2	%
Consumer installment		41,036		1.3	%		42,458	1.6	%
Lease financing receivable		2,733		0.1	%		3,095	0.1	%
Obligation of states and subdivisions		15,369		0.5	%		20,716	0.8	%
Total loans		3,145,110		100	%		2,611,168	100	%
Allowance for loan losses		(35,820)					(13,908)
Net loans	$	3,109,290				$	2,597,260

Schedule of allowance for loan and losses

Activity in the allowance for loan losses for December 31, 2020, 2019 and 2018 was as follows:

($ in thousands)

	2020		2019		2018
Balance at beginning of period	$	13,908	$	10,065	$	8,288
Prior period reclassification – Mortgage Reserve Funding		—		—		(181)
Beginning balance of allowance restated		13,908		10,065		8,107
Loans charged-off:
Commercial, financial and agriculture		(1,496)		(141)		(265)
Commercial real estate		(2,256)		(54)		(222)
Consumer real estate		(280)		(163)		(7)
Consumer installment		(447)		(306)		(87)
Total		(4,479)		(664)		(581)
Recoveries on loans previously charged-off:
Commercial, financial and agriculture		169		85		44
Commercial real estate		418		142		44
Consumer real estate		251		240		183
Consumer installment		402		302		148
Total		1,240		769		419
Net (Charge-offs) Recoveries		(3,239)		105		(162)
Provision for Loan Losses		25,151		3,738		2,120
Balance at end of period	$	35,820	$	13,908	$	10,065

Schedule of ending loan balances and allowance for loan losses that correspond to individual versus collective impairment evaluation

	Commercial,
	Financial and		Commercial		Consumer		Consumer
December 31, 2020	Agriculture		Real Estate		Real Estate		Installment		Unallocated		Total
Loans
Individually evaluated	$	2,241	$	23,857	$	1,248	$	49	$	—	$	27,395
Collectively evaluated		574,152		1,971,292		494,833		41,498		—		3,081,775
PCI Loans		244		9,056		5,185		23		—		14,508
Total	$	576,637	$	2,004,205	$	501,266	$	41,570	$	—	$	3,123,678
Allowance for Loan Losses
Individually evaluated	$	1,235	$	4,244	$	176	$	14	$	—	$	5,669
Collectively evaluated		4,979		20,075		4,560		537		—		30,151
Total	$	6,214	$	24,319	$	4,736	$	551	$	—	$	35,820

	Commercial,
	Financial and		Commercial		Consumer		Consumer
December 31, 2019	Agriculture		Real Estate		Real Estate		Installment		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

Schedule of impaired loans, excluding PCI loans

							Average		Interest
							Recorded		Income
December 31, 2020	Recorded		Unpaid		Related		Investment		Recognized
($ in thousands)	Investment		Balance		Allowance		YTD		YTD
Impaired loans with no related allowance:
Commercial, financial and agriculture	$	—	$	—	$	—	$	198	$	—
Commercial real estate		5,884		6,087		—		11,433		47
Consumer real estate		712		758		—		790		5
Consumer installment		23		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 estate		17,973		18,248		4,244		13,687		36
Consumer real estate		536		544		176		734		4
Consumer installment		26		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 estate		23,857		24,335		4,244		25,120		83
Consumer real estate		1,248		1,302		176		1,524		9
Consumer installment		49		50		14		103		—
Total Impaired Loans	$	27,395	$	27,941	$	5,669	$	29,131	$	150

							Average		Interest
							Recorded		Income
December 31, 2019	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

							Average		Interest
							Recorded		Income
December 31, 2018	Recorded		Unpaid		Related		Investment		Recognized
($ in thousands)	Investment		Balance		Allowance		YTD		YTD
Impaired loans with no related allowance:
Commercial, financial and agriculture	$	709	$	709	$	—	$	379	$	27
Commercial real estate		6,441		8,170		—		7,685		427
Consumer real estate		445		760		—		4,522		69
Consumer installment		—		—		—		82		3
Total	$	7,595	$	9,639	$	—	$	12,668	$	526
Impaired loans with a related allowance:
Commercial, financial and agriculture	$	960	$	960	$	329	$	968	$	3
Commercial real estate		4,512		4,512		758		2,868		176

Consumer real estate		366		366		66		555		16
Consumer installment		26		26		26		24		—
Total	$	5,846	$	5,864	$	1,179	$	4,415	$	195
Total Impaired Loans:
Commercial, financial and agriculture	$	1,669	$	1,669	$	329	$	1,347	$	30
Commercial real estate		10,953		12,682		758		10,553		603
Consumer real estate		811		1,126		66		5,077		85
Consumer installment		26		26		26		106		3
Total Impaired Loans	$	13,459	$	15,503	$	1,179	$	17,083	$	721

Schedule of payments receivable, cash flows expected to be collected and the estimated fair value of PCI loans acquired

($ 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 carrying amount and accretable yield for PCI loans

Changes in the carrying amount and accretable yield for purchased credit impaired loans were as follows for the year ended December 31, 2020 and 2019 ($ in thousands):

	2020				2019
	Accretable		Carrying Amount		Accretable		Carrying Amount
	Yield		of Loans		Yield		of Loans
Balance at beginning of period	$	3,417	$	14,482	$	3,835	$	13,817
Additions, including transfers from non-accretable		569		526		525		5,251
Accretion		(1,079)		1,079		(943)		943
Payments received, net		—		(4,486)		—		(5,529)
Balance at end of period	$	2,907	$	11,601	$	3,417	$	14,482

Schedule of troubled debt restructurings

The following tables provide details of TDRs during the twelve months ended December 31, 2020, 2019 and 2018. The modifications 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 nor were any of these loans written down.

	Outstanding		Outstanding
	Recorded		Recorded			Interest
($ in thousands, except for number of loans)	Investment		Investment		Number of	Income
December 31, 2020	Pre-Modification		Post-Modification		Loans	Recognized
Commercial, financial and agriculture	$	12	$	9	1	$	2
Commercial real estate		2,067		2,042	7		40
Consumer real estate		—		—	—		—
Consumer installment		1		1	1		—
Total	$	2,080	$	2,052	9	$	42

	Outstanding		Outstanding
	Recorded		Recorded			Interest
	Investment		Investment			Income
December 31, 2019	Pre-Modification		Post-Modification		Number of  Loans	Recognized
Commercial, financial and agriculture	$	979	$	1,023	7	$	19
Commercial real estate		15,953		16,122	14		137
Consumer real estate		551		553	3		12
Consumer installment		10		11	2		—
Total	$	17,493	$	17,709	26	$	168

	Outstanding		Outstanding
	Recorded		Recorded			Interest
	Investment		Investment		Number of	Income
December 31, 2018	Pre-Modification		Post-Modification		Loans	Recognized
Commercial, financial and agriculture	$	681	$	663	2	$	23
Commercial real estate		3,536		3,532	3		80
Consumer real estate		—		—	—		—
Consumer installment		—		—	—		—
Total	$	4,217	$	4,195	5	$	103

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

The following tables represents the Company’s TDRs for the year ended December 31, 2020, 2019 and 2018:

					Past Due 90
December 31, 2020	Current		Past Due		days and still
($ in thousands)	Loans		30‑89		accruing		Nonaccrual		Total
Commercial, financial and agriculture	$	59	$	—	$	—	$	765	$	824
Commercial real estate		4,560		49		—		18,076		22,685
Consumer real estate		1,559		269		—		2,161		3,989
Consumer installment		23		3		—		—		26
Total	$	6,201	$	321	$	—	$	21,002	$	27,524
Allowance for loan losses	$	163	$	29	$	—	$	3,936	$	4,128

					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

					Past Due 90
December 31, 2018	Current		Past Due		days and still
($ in thousands)	Loans		30‑89		accruing		Nonaccrual		Total
Commercial, financial and agriculture	$	13	$	646	$	—	$	18	$	676
Commercial real estate		4,827		—		—		5,425		10,252
Consumer real estate		442		86		—		2,801		3,329
Consumer installment		25		—		—		13		38
Total	$	5,307	$	732	$	—	$	8,257	$	14,295
Allowance for loan losses	$	80	$	13	$	—	$	110	$	203

The following table presents loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ending December 2020, 2019 and 2018 ($ in thousands, except for number of loans):

	2020			2019			2018
Troubled Debt Restructurings	Number of	Recorded		Number of	Recorded		Number of	Recorded
That Subsequently Defaulted:	Loans	Investment		Loans	Investment		Loans	Investment
Commercial, financial and agriculture	0	$	—	10	$	458	2	$	663
Commercial real estate	4		1,121	4		15,423	2		3,419
Total	4	$	1,121	14	$	15,881	4	$	4,082

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.  The TDRs presented above increased the allowance for loan losses $81 thousand, $1.3 million, $99 thousand and resulted in no charge-offs as of December 31, 2020, 2019 and 2018, respectively.

The following tables summarize by class our loans (excluding mortgage loans held for sale) classified as past due in excess of 30 days or more in addition to those loans classified as nonaccrual including PCI loans:

	December 31,2020
			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 (1)	$	1,007	$	244	$	2,197	$	221	$	3,669	$	561,341
Commercial real estate		2,116		1,553		19,499		3,388		26,556		1,652,993
Consumer real estate		5,389		895		2,480		5,954		14,718		850,206
Consumer installment		419		—		32		3		454		41,036
Lease financing receivable		—		—		—		—		—		2,733
Obligations of states and subdivisions		—		—		—		—		—		15,369
Total	$	8,931	$	2,692	$	24,208	$	9,566	$	45,397	$	3,123,678

(1) Total loan amount as of December 31, 2020 includes $239.7 million in PPP loans.

	December 31, 2019
			Past Due 90						Total
	Past Due		Days or More						Past Due,
	30 to 89		and						Non accrual		Total
($ in thousands)	Days		Still 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

Summary of deferred loans

The following table summarizes by class the deferred loans as of December 31, 2020 ($ in thousands):

		Unpaid
	Number	Principal
	of Loans	Balance
Commercial, financial and agriculture	16	$	7,701
Commercial real estate	44		69,718
Consumer real estate	10		4,589
Total	70	$	82,008

Schedule of risk category of loans by class of loans

As of December 31, 2020 and 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,
December 31, 2020	Financial and		Commercial		Consumer		Consumer
($ in thousands)	Agriculture		Real Estate		Real Estate		Installment		Total
Pass	$	560,966	$	1,841,110	$	526,448	$	41,418	$	2,969,942
Special Mention		2,143		64,012		1,889		20		68,064
Substandard		11,875		66,535		13,397		132		91,939
Doubtful		1,653		23		—		—		1,676
Subtotal	$	576,637	$	1,971,680	$	541,734	$	41,570	$	3,131,621
Less:
Unearned Discount		—		7,943		—		—		7,943
Loans, net of unearned discount	$	576,637	$	1,963,737	$	541,734	$	41,570	$	3,123,678

	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