XML 22 R28.htm IDEA: XBRL DOCUMENT v3.20.1
Loans and Leases (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Summary of Major Loan and Lease Categories
Summary of Major Loan and Lease Categories

(Dollars in thousands)At March 31, 2020At December 31, 2019
Commercial, financial and agricultural$944,189  $947,029  
Real estate-commercial2,100,699  2,040,441  
Real estate-construction215,150  232,595  
Real estate-residential secured for business purpose377,644  373,973  
Real estate-residential secured for personal purpose454,998  439,059  
Real estate-home equity secured for personal purpose177,405  174,435  
Loans to individuals29,170  29,883  
Lease financings149,570  149,421  
Total loans and leases held for investment, net of deferred income$4,448,825  $4,386,836  
Imputed interest on lease financings, included in the above table$(16,106) $(16,340) 
Net deferred costs, included in the above table5,754  5,999  
Overdraft deposits included in the above table314  407  
Schedule of Age Analysis of Past Due Loans and Leases
Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at March 31, 2020:
Accruing Loans and Leases
(Dollars in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days
or more
Past Due		Total
Past Due		CurrentTotal Accruing Loans and LeasesNonaccrual Loans and LeasesTotal Loans
and Leases
Held for
Investment
At March 31, 2020
Commercial, financial and agricultural$1,621  $709  $—  $2,330  $937,925  $940,255  $3,934  $944,189  
Real estate—commercial real estate and construction:
Commercial real estate23,325  2,091  722  26,138  2,045,734  2,071,872  28,827  2,100,699  
Construction4,076  —  —  4,076  211,074  215,150  —  215,150  
Real estate—residential and home equity:
Residential secured for business purpose4,479  1,164  400  6,043  370,331  376,374  1,270  377,644  
Residential secured for personal purpose5,258  1,486  426  7,170  446,548  453,718  1,280  454,998  
Home equity secured for personal purpose819  107  —  926  175,659  176,585  820  177,405  
Loans to individuals219  31  63  313  28,857  29,170  —  29,170  
Lease financings709  81  166  956  148,119  149,075  495  149,570  
Total$40,506  $5,669  $1,777  $47,952  $4,364,247  $4,412,199  $36,626  $4,448,825  

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current, acquired credit impaired loans and nonaccrual loans and leases at December 31, 2019:
Accruing Loans and Leases
(Dollars in thousands)30-59
Days
Past Due		60-89
Days
Past Due		90 Days
or more
Past Due		Total
Past Due		CurrentTotal Accruing Loans and LeasesAcquired Credit ImpairedNonaccrual Loans and LeasesTotal Loans
and Leases
Held for
Investment
At December 31, 2019
Commercial, financial and agricultural$2,602  $150  $20  $2,772  $940,815  $943,587  $—  $3,442  $947,029  
Real estate—commercial real estate and construction:
Commercial real estate3,473  266  —  3,739  2,008,568  2,012,307  206  27,928  2,040,441  
Construction—  —  —  —  232,338  232,338  —  257  232,595  
Real estate—residential and home equity:
Residential secured for business purpose2,078  2,442  —  4,520  366,473  370,993  —  2,980  373,973  
Residential secured for personal purpose2,969  446  —  3,415  433,548  436,963  58  2,038  439,059  
Home equity secured for personal purpose605  297  —  902  172,106  173,008  —  1,427  174,435  
Loans to individuals157  73  74  304  29,579  29,883  —  —  29,883  
Lease financings1,409  296  49  1,754  147,161  148,915  —  506  149,421  
Total$13,293  $3,970  $143  $17,406  $4,330,588  $4,347,994  $264  $38,578  $4,386,836  
Schedule of Nonperforming Loans and Leases
Nonperforming Loans and Leases

The following presents, by class of loans and leases, nonperforming loans and leases at March 31, 2020 and December 31, 2019.
 At March 31, 2020At December 31, 2019
(Dollars in thousands)Nonaccrual
Loans and
Leases*		Accruing
Troubled
Debt
Restructured
Loans and
Lease
Modifications		Loans and
Leases
90 Days
or more
Past Due
and
Accruing
Interest		Total Nonperforming
Loans and
Leases		Nonaccrual
Loans and
Leases*		Accruing
Troubled
Debt
Restructured
Loans and
Lease
Modifications		Loans and
Leases
90 Days
or more
Past Due
and
Accruing
Interest		Total Nonperforming
Loans and
Leases
Commercial, financial and agricultural$3,934  $—  $—  $3,934  $3,442  $—  $20  $3,462  
Real estate—commercial real estate and construction:
Commercial real estate28,827  —  722  29,549  27,928  —  —  27,928  
Construction—  —  —  —  257  —  —  257  
Real estate—residential and home equity:
Residential secured for business purpose1,270  —  400  1,670  2,980  —  —  2,980  
Residential secured for personal purpose1,280  —  426  1,706  2,038  —  —  2,038  
Home equity secured for personal purpose820  54  —  874  1,427  54  —  1,481  
Loans to individuals—  —  63  63  —  —  74  74  
Lease financings495  —  166  661  506  —  49  555  
Total$36,626  $54  $1,777  $38,457  $38,578  $54  $143  $38,775  
 * Includes nonaccrual troubled debt restructured loans of $13.7 million and $13.8 million at March 31, 2020 and December 31, 2019, respectively.
Nonaccrual Loan and Lease Data
The following table presents the amortized cost basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing as of March 31, 2020.
(Dollars in thousands)Nonaccrual With No ACLNonaccrual With ACLTotal NonaccrualLoans 90 Days or more Past Due and Accruing Interest
At March 31, 2020
Commercial, financial and agricultural$2,690  $1,244  $3,934  $—  
Real estate-commercial17,174  11,653  28,827  722  
Real estate-residential secured for business purpose1,010  260  1,270  400  
Real estate-residential secured for personal purpose718  562  1,280  426  
Real estate-home equity secured for personal purpose820  —  820  —  
Loans to individuals—  —  —  63  
Lease financings—  495  495  166  
Total$22,412  $14,214  $36,626  $1,777  
The following table presents the amortized cost basis of collateral-dependent nonaccrual loans by class of loans as of March 31, 2020.

(Dollars in thousands)Real Estate
Other (1)
None (2)
Total
At March 31, 2020
Commercial, financial and agricultural$2,002  $1,351  $581  $3,934  
Real estate-commercial28,827  —  —  28,827  
Real estate-residential secured for business purpose1,270  —  —  1,270  
Real estate-residential secured for personal purpose1,280  —  —  1,280  
Real estate-home equity secured for personal purpose820  —  —  820  
Total$34,199  $1,351  $581  $36,131  
(1) Business assets including accounts receivable and personal property.
(2) Loans fully reserved given lack of collateral.
Summary of Commercial Credit Quality Indicators
Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at March 31, 2020 and December 31, 2019.

The Corporation employs a risk rating system related to the credit quality of commercial loans and real estate loans secured for a business purpose. The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with a relationship balance of less than $1 million are reviewed on a performance basis, with the primary monitored metrics being delinquency status. Loans with relationships greater than $1 million are reviewed at least annually.  Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2019. 

1.Pass—Loans considered satisfactory with no indications of deterioration
2.Special Mention—Potential weakness that deserves management's close attention
3.Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt
4.Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable
Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at March 31, 2020 under ASC 326.
Term Loans Amortized Cost Basis by Origination Year
20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
At March 31, 2020
Commercial, Financial and Agricultural
Risk Rating
1. Pass$52,864  $146,722  $99,263  $65,395  $34,880  $89,984  $420,193  $909,301  
2. Special Mention3  970  1,979  2,841  1,621  1,685  9,678  18,777  
3. Substandard—  1,144  1,356  61  —  628  12,922  16,111  
Total$52,867  $148,836  $102,598  $68,297  $36,501  $92,297  $442,793  $944,189  
Real Estate-Commercial
Risk Rating
1. Pass$161,322  $613,240  $358,038  $357,068  $194,772  $305,101  $44,969  $2,034,510  
2. Special Mention1,754  12,432  —  1,134  5,092  2,918  582  23,912  
3. Substandard—  944  941  11,219  —  26,424  2,749  42,277  
Total$163,076  $626,616  $358,979  $369,421  $199,864  $334,443  $48,300  $2,100,699  
Real Estate-Construction
Risk Rating
1. Pass$22,374  $91,509  $55,864  $10,987  $2,950  $—  $4,372  $188,056  
2. Special Mention20,109  —  —  —  —  —  —  20,109  
3. Substandard—  —  6,985  —  —  —  —  6,985  
Total$42,483  $91,509  $62,849  $10,987  $2,950  $—  $4,372  $215,150  
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass$24,846  $87,962  $69,936  $56,391  $48,747  $55,682  $29,802  $373,366  
2. Special Mention1,121  475  —  79  743  480  —  2,898  
3. Substandard—  24  —  82  552  654  68  1,380  
Total$25,967  $88,461  $69,936  $56,552  $50,042  $56,816  $29,870  $377,644  

The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2020. The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2020.

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at December 31, 2019 under ASC 310.
(Dollars in thousands)Commercial,
Financial and
Agricultural		Real Estate—
Commercial		Real Estate—
Construction		Real Estate—
Residential Secured
for Business Purpose		Total
At December 31, 2019
Grade:
1. Pass$911,848  $1,974,561  $201,424  $367,122  $3,454,955  
2. Special Mention18,843  24,199  20,987  3,769  67,798  
3. Substandard16,338  41,681  10,184  3,082  71,285  
Total$947,029  $2,040,441  $232,595  $373,973  $3,594,038  
Summary of Credit Exposure
Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financings Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans, home equity loans secured for a personal purpose and loans to individuals and lease financings. Loans and leases past due 90 days or more, loans and leases on nonaccrual status and troubled debt restructured loans and lease modifications are considered nonperforming. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2019. 

The following table presents classification of loans at March 31, 2020.
Term Loans Amortized Cost Basis by Origination Year
20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
At March 31, 2020
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing$27,745  $93,752  $87,429  $71,235  $53,602  $117,858  $1,671  $453,292  
2. Nonperforming—  426  57  —  —  1,223  —  1,706  
Total$27,745  $94,178  $87,486  $71,235  $53,602  $119,081  $1,671  $454,998  
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing$164  $1,104  $1,707  $1,702  $692  $3,583  $167,579  $176,531  
2. Nonperforming—  —  108  —  —  30  736  874  
Total$164  $1,104  $1,815  $1,702  $692  $3,613  $168,315  $177,405  
Loans to Individuals
Payment Performance
1. Performing$630  $2,282  $1,464  $821  $481  $2,736  $20,693  $29,107  
2. Nonperforming—  —  —  —  —  63  —  63  
Total$630  $2,282  $1,464  $821  $481  $2,799  $20,693  $29,170  
Lease Financings
Payment Performance
1. Performing$15,187  $58,670  $43,587  $19,482  $9,488  $2,495  $—  $148,909  
2. Nonperforming—  27  129  396  43  66  —  661  
Total$15,187  $58,697  $43,716  $19,878  $9,531  $2,561  $—  $149,570  

The following table presents classifications of loans at December 31, 2019.
(Dollars in thousands)Real Estate—
Residential
Secured for
Personal Purpose		Real Estate—
Home Equity
Secured for
Personal Purpose		Loans to
Individuals		Lease
Financings		Total
At December 31, 2019
Performing$437,021  $172,954  $29,809  $148,866  $788,650  
Nonperforming2,038  1,481  74  555  4,148  
Total$439,059  $174,435  $29,883  $149,421  $792,798  
Summary of Activity in the Reserve for Loan and Lease Credit Losses
Reserve for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for credit losses, loans and leases, for the three months ended March 31, 2020 and 2019:

(Dollars in thousands)Beginning balance, prior to adoption of ASU No. 2016-13 for CECLAdjustment to initially apply ASU No. 2016-13 for CECLProvision (recovery of provision) for credit lossesCharge-offsRecoveriesEnding balance
Three Months Ended March 31, 2020
Reserve for credit losses, loans and leases:
Commercial, Financial and Agricultural$8,759  $5,284  $5,630  $(481) $52  $19,244  
Real Estate-Commercial15,750  6,208  12,817  —  35  34,810  
Real Estate-Construction2,446  29  642  —  —  3,117  
Real Estate-Residential Secured for Business Purpose2,622  2,502  782  (3) 3  5,906  
Real Estate-Residential Secured for Personal Purpose2,713  (706) 114  —  —  2,121  
Real Estate-Home Equity Secured for Personal Purpose1,076  (364) 78  —  5  795  
Loans to Individuals470  104  47  (35) 14  600  
Lease Financings1,311  (135) 376  (152) 73  1,473  
Unallocated184  —  (34) N/A  N/A  150  
Total$35,331  $12,922  $20,452  $(671) $182  $68,216  
Three Months Ended March 31, 2019
Reserve for credit losses, loans and leases:
Commercial, Financial and Agricultural$7,983  $—  $1,353  $(468) $82  $8,950  
Real Estate-Commercial and Construction13,903  —  1,028  (41) 91  14,981  
Real Estate-Residential Secured for Business Purpose2,236  —  62  —  4  2,302  
Real Estate-Residential and Home Equity Secured for Personal Purpose3,199  —  186  (11) 5  3,379  
Loans to Individuals484  —  48  (85) 22  469  
Lease Financings1,288  —  33  (104) 58  1,275  
Unallocated271  —  (25) N/A  N/A  246  
Total$29,364  $—  $2,685  $(709) $262  $31,602  
N/A – Not applicable
Schedule of Reserve for Loan and Lease Credit Losses and Recorded Investment in Loans and Leases
The following presents, by portfolio segment, the balance in the ACL on loans and leases, disaggregated on the basis of whether the loan or lease was measured for credit loss as a pooled loan or lease or if it was individually analyzed for a reserve at March 31, 2020 and 2019:

Allowance for credit losses, loans and leasesLoans and leases held for investment
(Dollars in thousands)Ending balance: individually analyzedEnding balance: pooledTotal ending balanceEnding balance: individually analyzedEnding balance: pooledLoans measured at fair valueTotal ending balance
At March 31, 2020
Commercial, Financial and Agricultural$698  $18,546  $19,244  $3,934  $940,255  $—  $944,189  
Real Estate-Commercial1,547  33,263  34,810  28,827  2,071,584  288  2,100,699  
Real Estate-Construction—  3,117  3,117  —  215,150  —  215,150  
Real Estate-Residential Secured for Business Purpose95  5,811  5,906  1,270  376,374  —  377,644  
Real Estate-Residential Secured for Personal Purpose195  1,926  2,121  1,280  453,718  —  454,998  
Real Estate-Home Equity Secured for Personal Purpose—  795  795  820  176,585  —  177,405  
Loans to Individuals—  600  600  —  29,170  —  29,170  
Lease Financings—  1,473  1,473  —  149,570  —  149,570  
UnallocatedN/A  150  150  N/A  N/A  N/A  N/A  
Total$2,535  $65,681  $68,216  $36,131  $4,412,406  $288  $4,448,825  
At March 31, 2019
Commercial, Financial and Agricultural$243  $8,707  $8,950  $3,174  $924,464  $—  $927,638  
Real Estate-Commercial and Construction925  14,056  14,981  18,467  1,995,954  1,748  2,016,169  
Real Estate-Residential Secured for Business Purpose—  2,302  2,302  1,232  359,690  —  360,922  
Real Estate-Residential and Home Equity Secured for Personal Purpose335  3,044  3,379  3,129  586,909  —  590,038  
Loans to Individuals—  469  469  —  32,603  —  32,603  
Lease Financings—  1,275  1,275  —  140,509  —  140,509  
UnallocatedN/A  246  246  N/A  N/A  N/A  N/A  
Total$1,503  $30,099  $31,602  $26,002  $4,040,129  $1,748  $4,067,879  
N/A – Not applicable
Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans
The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:
 Three Months Ended March 31, 2020Three Months Ended March 31, 2019
(Dollars in thousands)Number
of
Loans		Pre-
Restructuring
Outstanding
Recorded
Investment		Post-
Restructuring
Outstanding
Recorded
Investment		Number
of
Loans		Pre-
Restructuring
Outstanding
Recorded
Investment		Post-
Restructuring
Outstanding
Recorded
Investment
Accruing Troubled Debt Restructured Loans:
Total—  $—  $—  —  $—  $—  
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural*—  $—  $—  2  $956  $956  
Real estate—commercial real estate*—  —  —  1  1,313  1,313  
Total—  $—  $—  3  $2,269  $2,269  
* The three nonaccrual troubled debt restructured loans in the above table totaling $2.3 million were modified via the execution of a forbearance agreement during the three months ended March 31, 2019. These loans relate to one borrower and were on nonaccrual status at the time of modification.
Schedule of Concessions Granted on Accruing and Nonaccrual Troubled Loans
The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three months ended March 31, 2020 and 2019.
 Amortization Period Extension
(Dollars in thousands)No. of
Loans		Amount
Three Months Ended March 31, 2020
Accruing Troubled Debt Restructured Loans:
Total—  $—  
Nonaccrual Troubled Debt Restructured Loans:
Total—  $—  
Three Months Ended March 31, 2019
Accruing Troubled Debt Restructured Loans:
Total—  $—  
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural2  $956  
Real estate—commercial real estate1  1,313  
Total3  $2,269  
Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans With Payment Defaults There were no accruing or nonaccrual troubled debt restructured loans for which there were payment defaults within twelve months of the restructuring date for the three months ended March 31, 2020 or March 31, 2019.
Schedule of Mortgages in Process of Foreclosure
The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at March 31, 2020 and December 31, 2019:
(Dollars in thousands)At March 31, 2020At December 31, 2019
Real estate-residential secured for personal purpose$714  $714  
Real estate-home equity secured for personal purpose247  1,058  
Total$961  $1,772  
Schedule of Lease Payments Receivables
The following presents the schedule of minimum lease payments receivable:
(Dollars in thousands)At March 31, 2020At December 31, 2019
2020 (excluding the three months ended March 31, 2020)$44,780  $57,515  
202148,877  45,510  
202235,510  32,233  
202321,384  18,345  
20249,172  6,639  
Thereafter2,836  2,259  
Total future minimum lease payments receivable162,559  162,501  
Plus: Unguaranteed residual877  886  
Plus: Initial direct costs2,240  2,374  
Less: Imputed interest(16,106) (16,340) 
Lease financings$149,570  $149,421  
Troubled Debt Restructurings On Financing Receivables3
The following presents foreclosed residential real estate property included in other real estate owned at March 31, 2020 or December 31, 2019.
(Dollars in thousands)At March 31, 2020At December 31, 2019
Foreclosed residential real estate$71  $71