LOANS (Tables)

6 Months Ended

Jun. 30, 2021

LOANS

Schedule of composition of loan portfolio

($ in thousands)	June 30, 2021		December 31, 2020
Loans held for sale
Mortgage loans held for sale	$	6,000	$	21,432
Total LHFS	$	6,000	$	21,432
Loans held for investment
Commercial, financial and agriculture (1)	$	511,517	$	579,443
Commercial real estate		1,653,090		1,652,993
Consumer real estate		833,889		850,206
Consumer installment		38,236		41,036
Total loans		3,036,732		3,123,678
Less allowance for credit losses		(32,457)		(35,820)
Net LHFI	$	3,004,275	$	3,087,858

(1) Loan balance includes $157.8 million and $239.7 million in PPP loans as of June 30, 2021 and December 31, 2020, respectively.

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

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:

($ in thousands)	June 30, 2021
									Total
	Past Due		Past Due						Past Due,
	30 to 89		90 Days or More and						Nonaccrual		Total		Nonaccrual and
	Days		Still Accruing		Nonaccrual		PCD		and PCD		LHFI		PCD with No ACL
Commercial, financial and agriculture (1)	$	252	$	10	$	276	$	28	$	566	$	511,517	$	28
Commercial real estate		2,318		4,913		16,601		2,470		26,302		1,653,090		1,841
Consumer real estate		3,020		911		3,185		5,027		12,143		833,889		1,833
Consumer installment		130		—		36		2		168		38,236		—
Total	$	5,720	$	5,834	$	20,098	$	7,527	$	39,179	$	3,036,732	$	3,702

(1) Total loan balance includes $157.8 million in PPP loans as of June 30, 2021.

($ in thousands)	December 31,2020
			Past Due 90						Total
	Past Due		Days or						Past Due,
	30 to 89		More and Still						Nonaccrual		Total
	Days		Accruing		Nonaccrual		PCI		and PCI		LHFI
Commercial, financial and agriculture (1)	$	1,007	$	244	$	2,197	$	221	$	3,669	$	579,443
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
Total	$	8,931	$	2,692	$	24,208	$	9,566	$	45,397	$	3,123,678

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

Schedule of impaired loans, excluding PCI loans

December 31, 2020

($ in thousands)							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	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

Schedule of troubled debt restructurings

The following table presents LHFI by class modified as TDRs that occurred during the three months and six months ended June 30, 2021 and 2020($ in thousands, except for number of loans).

	Three Months Ended June 30,
		Outstanding		Outstanding
		Recorded		Recorded
	Number of	Investment		Investment
2021	Loans	Pre-Modification		Post-Modification
Commercial, financial and agriculture	—	$	—	$	—
Commercial real estate	2		237		237
Consumer real estate	1		54		44
Consumer installment	—		—		—
Total	3	$	291	$	281
2020
Commercial, financial and agriculture	1	$	35	$	35
Commercial real estate	1		195		195
Consumer real estate	—		—		—
Consumer installment	—		—		—
Total	2	$	230	$	230

The TDRs presented above increased the ACL $21 thousand and increased the allowance for loan losses $11 thousand and resulted in no charge-offs for the three months period ended June 30, 2021 and 2020, respectively.

	Six Months Ended June 30,
		Outstanding		Outstanding
		Recorded		Recorded
	Number of	Investment		Investment
2021	Loans	Pre-Modification		Post-Modification
Commercial, financial and agriculture	—	$	—	$	—
Commercial real estate	2		237		237
Consumer real estate	1		54		44
Consumer installment	—		—		—
Total	3	$	291	$	281
2020
Commercial, financial and agriculture	2	$	47	$	46
Commercial real estate	3		933		928
Consumer real estate	—		—		—
Consumer installment	—		—		—
Total	5	$	980	$	974

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,
	2021			2020
Troubled Debt Restructurings	Number of	Recorded		Number of	Recorded
That Subsequently Defaulted:	Loans	Investment		Loans	Investment
Commercial, financial and agriculture	—	$	—	2	$	254
Commercial real estate	3		1,027	9		15,083
Consumer real estate	1		44	—		—
Total	4	$	1,071	11	$	15,337

The following tables represents the Company’s TDRs at June 30, 2021 and December 31, 2020:

June 30, 2021					Past Due 90
	Current		Past Due		days and still
($ in thousands)	Loans		30‑89		accruing		Nonaccrual		Total
Commercial, financial and agriculture	$	41	$	—	$	—	$	149	$	190
Commercial real estate		3,502		—		—		13,376		16,878
Consumer real estate		2,371		—		—		2,037		4,408
Consumer installment		20		—		—		—		20
Total	$	5,934	$	—	$	—	$	15,562	$	21,496
Allowance for credit losses	$	62	$	—	$	—	$	2,927	$	2,989

December 31, 2020					Past Due 90
	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

Schedule of amortized cost basis of collateral dependent impaired loans by class of loans

($ in thousands)	Real Property		Equipment		Miscellaneous		Total
Commercial, financial and agriculture	$	—	$	28	$	—	$	28
Commercial real estate		2,986		—		—		2,986
Consumer real estate		2,313		—		—		2,313
Consumer installment		—		—		2		2
Total	$	5,299	$	28	$	2	$	5,329

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. Revolving loans converted to term as of the six months ended June 30, 2021 were not material to the total loan portfolio.

($ in thousands)	Term Loans Amortized Cost Basis by Origination Year
													Revolving
As of June 30, 2021	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial, financial and:
agriculture
Risk Rating
Pass	$	168,707	$	119,630	$	62,509	$	57,083	$	30,665	$	52,296	$	149	$	491,039
Special mention		—		258		1,385		424		340		215		—		2,622
Substandard		—		53		1,862		6,778		512		8,641		10		17,856
Doubtful		—		—		—		—		—		—		—		—
Total commercial, financial
and agriculture	$	168,707	$	119,941	$	65,756	$	64,285	$	31,517	$	61,152	$	159	$	511,517
Commercial real estate:
Risk Rating
Pass	$	184,689	$	348,150	$	243,816	$	221,733	$	161,793	$	372,118	$	—	$	1,532,299
Special mention		—		3,133		2,181		13,561		4,090		21,110		—		44,075
Substandard		188		4,756		3,465		17,583		20,076		30,648		—		76,716
Doubtful		—		—		—		—		—		—		—		—
Total commercial real estate	$	184,877	$	356,039	$	249,462	$	252,877	$	185,959	$	423,876	$	—	$	1,653,090
Consumer real estate:
Risk Rating
Pass	$	117,209	$	209,247	$	84,167	$	81,170	$	66,537	$	148,924	$	98,114	$	805,368
Special mention		—		—		342		1,129		242		2,206		125		4,044
Substandard		305		541		2,216		3,272		1,966		14,884		1,271		24,455
Doubtful		—		—		—		—		—		22		—		22
Total consumer real estate	$	117,514	$	209,788	$	86,725	$	85,571	$	68,745	$	166,036	$	99,510	$	833,889
Consumer installment:
Risk Rating
Pass	$	9,029	$	12,169	$	6,795	$	2,670	$	1,536	$	2,094	$	3,829	$	38,122
Special mention		—		—		—		10		3		1		—		14
Substandard		—		—		22		12		13		28		25		100
Doubtful		—		—		—		—		—		—		—		—
Total consumer installment	$	9,029	$	12,169	$	6,817	$	2,692	$	1,552	$	2,123	$	3,854	$	38,236
Total
Pass	$	479,634	$	689,196	$	397,287	$	362,656	$	260,531	$	575,432	$	102,092	$	2,866,828
Special mention		—		3,391		3,908		15,124		4,675		23,532		125		50,755
Substandard		493		5,350		7,565		27,645		22,567		54,201		1,306		119,127
Doubtful		—		—		—		—		—		22		—		22
Total	$	480,127	$	697,937	$	408,760	$	405,425	$	287,773	$	653,187	$	103,523	$	3,036,732

At December 31, 2020, 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	$	563,772	$	1,530,366	$	834,920	$	40,884	$	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	$	579,443	$	1,660,936	$	850,206	$	41,036	$	3,131,621
Less: Unearned discount		—		7,943		—		—		7,943
LHFI, net of unearned discount	$	579,443	$	1,652,993	$	850,206	$	41,036	$	3,123,678

Schedule of allowance for credit losses

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months and six months ended June 30, 2021 and the allowance for loan losses for the three months and six months ended June 30, 2020:

	Three Months Ended June 30, 2021
($ in thousands)	Commercial,
	Financial and		Commercial		Consumer		Consumer
	Agriculture		Real Estate		Real Estate		Installment		Total
Allowance for credit losses:
Beginning balance	$	4,158	$	17,578	$	10,280	$	647	$	32,663
Provision for credit losses		—		—		—		—		—
Loans charged-off		(490)		(166)		(124)		(108)		(888)
Recoveries		242		161		183		96		682
Total ending allowance balance	$	3,910	$	17,573	$	10,339	$	635	$	32,457

	Six Months Ended June 30, 2021
($ in thousands)	Commercial,
	Financial and		Commercial		Consumer		Consumer
	Agriculture		Real Estate		Real Estate		Installment		Total
Allowance for credit losses:
Beginning balance	$	6,214	$	24,319	$	4,736	$	551	$	35,820
Impact of ASC 326 adoption on non-PCD loans		(1,319)		(4,607)		5,257		(49)		(718)
Impact of ASC 326 adoption on PCD loans		166		575		372		2		1,115
Provision for credit losses		—		—		—		—		—
Loans charged-off		(1,476)		(3,007)		(263)		(265)		(5,011)
Recoveries		325		293		237		396		1,251
Total ending allowance balance	$	3,910	$	17,573	$	10,339	$	635	$	32,457

	Three Months Ended June 30, 2020
($ in thousands)	Commercial,		Commercial		Consumer				Paycheck
	Financial and		Real		Real		Consumer		Protection
	Agriculture		Estate		Estate		Installment		Program		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	4,466	$	13,095	$	2,840	$	403	$	—	$	—	$	20,804
Provision for loan losses		883		5,202		874		517		130		—		7,606
Loans charged-off		(165)		(63)		(87)		(554)		—		—		(869)
Recoveries		24		292		114		93		—		—		523
Total ending allowance balance	$	5,208	$	18,526	$	3,741	$	459	$	130	$	—	$	28,064

	Six Months Ended June 30, 2020
($ in thousands)	Commercial,		Commercial		Consumer				Paycheck
	Financial and		Real		Real		Consumer		Protection
	Agriculture		Estate		Estate		Installment		Program		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	3,043	$	8,836	$	1,694	$	296	$	—	$	39	$	13,908
Provision for loan losses		2,329		9,725		1,980		583		130		(39)		14,708
Loans charged-off		(264)		(396)		(96)		(613)		—		—		(1,369)
Recoveries		100		361		163		193		—		—		817
Total ending allowance balance	$	5,208	$	18,526	$	3,741	$	459	$	130	$	—	$	28,064

The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2021 ($ in thousands).

June 30, 2021	Commercial,
	Financial and		Commercial		Consumer		Consumer
	Agriculture		Real Estate		Real Estate		Installment		Total
LHFI
Individually evaluated	$	28	$	2,986	$	2,313	$	2	$	5,329
Collectively evaluated		511,489		1,650,104		831,576		38,234		3,031,403
Total	$	511,517	$	1,653,090	$	833,889	$	38,236	$	3,036,732
Allowance for Credit Losses
Individually evaluated	$	—	$	147	$	4	$	2	$	153
Collectively evaluated		3,910		17,426		10,335		633		32,304
Total	$	3,910	$	17,573	$	10,339	$	635	$	32,457

The following table provides the ending balance in the Company’s LHFI and the allowance for loan losses, broken down by portfolio segment as of December 31, 2020 ($ in thousands).

December 31, 2020	Commercial,
	Financial and		Commercial		Consumer		Consumer
	Agriculture		Real Estate		Real Estate		Installment		Total
LHFI
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