
	December 31,
(dollars in thousands)	2022		2021
Commercial, financial and agricultural	$	2,679,403	$	1,875,993
Consumer	384,037		191,298
Indirect automobile	108,648		265,779
Mortgage warehouse	1,038,924		787,837
Municipal	509,151		572,701
Premium finance	1,023,479		798,409
Real estate – construction and development	2,086,438		1,452,339
Real estate – commercial and farmland	7,604,867		6,834,917
Real estate – residential	4,420,306		3,094,985
	$	19,855,253	$	15,874,258

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged against interest income. Interest received on loans that are classified as nonaccrual is subsequently applied to principal until the loans

are returned to accrual status. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment, approved by the Company’s Chief Credit Officer. Past due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.

The following table presents an analysis of loans accounted for on a nonaccrual basis:


	December 31,
(dollars in thousands)	2022		2021
Commercial, financial and agricultural	$	11,094	$	14,214
Consumer	420		476
Indirect automobile	346		947



Real estate – construction and development	523		492
Real estate – commercial and farmland	13,203		15,365
Real estate – residential (1)	109,222		53,772
	$	134,808	$	85,266

The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:


(dollars in thousands)	December 31, 2022		December 31, 2021
Commercial, financial and agricultural	$	33	$	262





Real estate – construction and development	—		209
Real estate – commercial and farmland	1,464		2,015
Real estate – residential	58,734		29,556
	$	60,231	$	32,042


(dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
December 31, 2022
Commercial, financial and agricultural	$	16,219	$	5,451	$	11,632	$	33,302	$	2,646,101	$	2,679,403	$	3,267
Consumer	2,539		3,163		741		6,443		377,594		384,037		472
Indirect automobile	466		77		267		810		107,838		108,648		—
Mortgage warehouse	—		—		—		—		1,038,924		1,038,924		—
Municipal	—		—		—		—		509,151		509,151		—
Premium finance	13,859		10,620		13,626		38,105		985,374		1,023,479		13,626
Real estate – construction and development	25,367		3,829		966		30,162		2,056,276		2,086,438		500
Real estate – commercial and farmland	1,738		168		10,223		12,129		7,592,738		7,604,867		—
Real estate – residential	35,015		11,329		106,170		152,514		4,267,792		4,420,306		—
Total	$	95,203	$	34,637	$	143,625	$	273,465	$	19,581,788	$	19,855,253	$	17,865


(dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
December 31, 2021
Commercial, financial and agricultural	$	3,431	$	2,005	$	12,017	$	17,453	$	1,858,540	$	1,875,993	$	1,165
Consumer	1,786		871		891		3,548		187,750		191,298		584
Indirect automobile	772		185		473		1,430		264,349		265,779		—
Mortgage warehouse	—		—		—		—		787,837		787,837		—
Municipal	—		—		—		—		572,701		572,701		—
Premium finance	6,992		4,340		9,134		20,466		777,943		798,409		9,134
Real estate – construction and development	16,601		1,398		2,190		20,189		1,432,150		1,452,339		1,758
Real estate – commercial and farmland	6,713		1,150		5,924		13,787		6,821,130		6,834,917		7
Real estate – residential	17,729		4,266		49,839		71,834		3,023,151		3,094,985		—
Total	$	54,024	$	14,215	$	80,468	$	148,707	$	15,725,551	$	15,874,258	$	12,648

Collateral-dependent loans are loans where repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. If the Company determines that foreclosure is probable, these loans are written down to the lower of cost or collateral value less estimated costs to sell. When repayment is expected to be from the operation of the collateral, the allowance for credit losses is calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. The Company may, in the alternative, measure the allowance for credit loss as the amount by which the amortized cost basis of the financial asset exceeded the estimated fair value of the collateral. As of December 31, 2022 and 2021, there were $41.8 million and $52.1 million, respectively, of collateral-dependent loans which are primarily secured by real estate, equipment and receivables.


(dollars in thousands)	December 31, 2022				December 31, 2021
	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial, financial and agricultural	$	7,128	$	6,294	$	2,613	$	723




Premium finance	3,233		—		2,989		30
Real estate – construction and development	780		13		1,432		45
Real estate – commercial and farmland	15,168		1,428		33,332		6,646
Real estate – residential	15,464		2,066		11,712		453
	$	41,773	$	9,801	$	52,078	$	7,897

Other Assets Especially Mentioned (Grade 6) – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard (Grade 7) – This grade represents loans which are inadequately protected by the current credit worthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Doubtful (Grade 8) – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Loss (Grade 9) – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

The following table presents the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands). Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the table below. The Company had an immaterial amount of revolving loans which converted to term loans and the amortized cost basis of those loans is included in the applicable origination year. There were no loans risk graded 8 or 9 at December 31, 2022 and 2021.


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2022	2022		2021		2020		2019		2018		Prior
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	1,739,021	$	1,975,003	$	1,085,086	$	869,116	$	447,311	$	1,259,763	$	110,848	$	7,486,148
6	607		17,974		—		30,841		4,801		18,289		—		72,512
7	387		2,810		3,078		12,007		6,527		21,398		—		46,207


Total real estate – commercial and farmland	$	1,740,015	$	1,995,787	$	1,088,164	$	911,964	$	458,639	$	1,299,450	$	110,848	$	7,604,867
Real Estate - Residential
Risk Grade:
Pass	$	1,524,021	$	1,214,724	$	548,968	$	268,821	$	115,693	$	393,570	$	234,684	$	4,300,481
6	236		145		94		688		364		2,910		600		5,037
7	6,735		21,283		25,860		27,173		14,396		17,665		1,676		114,788


Total real estate - residential	$	1,530,992	$	1,236,152	$	574,922	$	296,682	$	130,453	$	414,145	$	236,960	$	4,420,306
Total Loans
Risk Grade:
Pass	$	6,284,768	$	4,578,661	$	2,340,683	$	1,361,730	$	699,846	$	2,027,031	$	2,221,009	$	19,513,728
6	1,158		18,132		188		31,712		6,233		23,247		23,944		104,614
7	28,806		26,687		30,500		42,646		34,894		43,511		29,867		236,911


Total loans	$	6,314,732	$	4,623,480	$	2,371,371	$	1,436,088	$	740,973	$	2,093,789	$	2,274,820	$	19,855,253


	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2021	2021		2020		2019		2018		2017		Prior
Commercial, Financial and Agricultural
Risk Grade:
Pass	$	903,630	$	279,037	$	188,810	$	118,613	$	50,737	$	40,376	$	262,951	$	1,844,154
6	190		—		393		427		368		1,832		1,961		5,171
7	9,216		1,268		4,098		1,472		2,566		6,019		2,029		26,668


Total commercial, financial and agricultural	$	913,036	$	280,305	$	193,301	$	120,512	$	53,671	$	48,227	$	266,941	$	1,875,993
Consumer
Risk Grade:
Pass	$	35,781	$	59,221	$	37,195	$	27,266	$	9,787	$	11,021	$	9,437	$	189,708
6	—		—		—		—		—		135		5		140
7	59		283		290		216		103		405		94		1,450


Total consumer	$	35,840	$	59,504	$	37,485	$	27,482	$	9,890	$	11,561	$	9,536	$	191,298
Indirect Automobile
Risk Grade:
Pass	$	—	$	—	$	20,276	$	101,969	$	90,294	$	51,468	$	—	$	264,007
6	—		—		—		24		10		19		—		53
7	—		—		55		234		384		1,046		—		1,719


Total indirect automobile	$	—	$	—	$	20,331	$	102,227	$	90,688	$	52,533	$	—	$	265,779

The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The Company has exhibited the greatest success for rehabilitation of the loan by a reduction in the rate alone (maintaining the amortization of the debt) or a combination of a rate reduction and the forbearance of previously past due interest or principal. This has most typically been evidenced in certain commercial real estate loans whereby a disruption in the borrower’s cash flow resulted in an extended past due status, of which the borrower was unable to catch up completely as the cash flow of the property ultimately stabilized at a level lower than its original level. A reduction in rate, coupled with a forbearance of unpaid principal and/or interest, allowed the net cash flows to service the debt under the modified terms.

The Company’s policy requires a restructure request to be supported by a current, well-documented credit evaluation of the borrower’s financial condition and a collateral evaluation that is no older than six months from the date of the restructure. Key factors of that evaluation include the documentation of current, recurring cash flows, support provided by the guarantor(s) and the current valuation of the collateral. If the appraisal in file is older than six months, an evaluation must be made as to the continued reasonableness of the valuation. For certain income-producing properties, current rent rolls and/or other income information can be utilized to support the appraisal valuation, when coupled with documented cap rates within our markets and a physical inspection of the collateral to validate the current condition.

The Company’s policy states in the event a loan has been identified as a troubled debt restructuring, it should be assigned a grade of substandard until such time that the borrower has demonstrated the ability to service the loan payments based on the restructured terms – generally defined as six months of satisfactory payment history. Missed payments under the original loan terms are not considered under the new structure; however, subsequent missed payments are considered non-performance and are not considered toward the six month required term of satisfactory payment history.

In the normal course of business, the Company renews loans with a modification of the interest rate or terms that are not deemed as troubled debt restructurings because the borrower is not experiencing financial difficulty. The Company modified loans in 2022 and 2021 totaling $350.7 million and $408.9 million, respectively, under such parameters. These totals do not include modifications under our disaster relief program.

As of December 31, 2022 and 2021, the Company had a balance of $40.2 million and $76.6 million, respectively, in troubled debt restructurings. The Company has recorded $646,000 and $654,000 in previous charge-offs on such loans at December 31, 2022 and 2021, respectively. The Company’s balance in the allowance for credit losses allocated to such troubled debt restructurings was $2.6 million and $10.5 million at December 31, 2022 and 2021, respectively. At December 31, 2022, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings.

During the year ending December 31, 2022 and 2021, the Company modified loans as troubled debt restructurings, with principal balances of $4.6 million and $19.7 million, respectively, and these modifications did not have a material impact on the Company's allowance for credit losses. These modifications do not include modifications for which the Company applied the temporary relief under Section 4013 of the CARES Act.


	December 31, 2022			December 31, 2021
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	3	$	833	4	$	401
Consumer	—	—		2	7



Premium finance	4	171		—	—
Real estate – construction and development	1	17		—	—
Real estate – commercial and farmland	4	800		5	16,197
Real estate – residential	12	2,801		23	3,056
Total	24	$	4,622	34	$	19,661

Troubled debt restructurings with an outstanding balance of $4.1 million and $2.3 million defaulted during the year ended December 31, 2022 and 2021, respectively, and these defaults did not have a material impact on the Company’s allowance for credit losses.


	December 31, 2022			December 31, 2021
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	—	$	—	4	$	35
Consumer	2	2		2	5
Indirect automobile	6	16		19	75




Real estate – commercial and farmland	1	7		—	—
Real estate – residential	30	4,103		21	2,177
Total	39	$	4,128	46	$	2,292


As of December 31, 2022	Accruing Loans			Non-Accruing Loans
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	7	$	835	3	$	743
Consumer	3	3		8	11
Indirect automobile	151	533		16	55


Premium finance	4	171		—	—
Real estate – construction and development	2	693		1	17
Real estate – commercial and farmland	16	7,995		5	767
Real estate – residential	205	24,166		30	4,181
Total	388	$	34,396	63	$	5,774


As of December 31, 2021	Accruing Loans			Non-Accruing Loans
Loan Class	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial and agricultural	12	$	1,286	6	$	83
Consumer	7	16		17	35
Indirect automobile	233	1,037		52	273



Real estate – construction and development	4	789		1	13
Real estate – commercial and farmland	25	35,575		5	5,924
Real estate – residential	213	26,879		39	4,678
Total	494	$	65,582	120	$	11,006

In the ordinary course of business, the Company has granted loans to certain executive officers, directors and their affiliates. These loans are made on substantially the same terms as those prevailing at the time for comparable transaction and do not involve more than normal credit risk. Changes in related party loans are summarized as follows:

The allowance for credit losses represents an allowance for expected losses over the remaining contractual life of the assets adjusted for prepayments. The contractual term does not consider extensions, renewals or modifications unless the Company reasonably expects to execute a troubled debt restructuring with a borrower. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

The allowance for credit losses was determined at December 31, 2022 using the Moody's baseline scenario economic forecast representing management's best estimate over the reasonable and supportable forecast period. The allowance for credit losses was determined at December 31, 2021 using a weighting of five economic forecasts from Moody's in order to align with management's best estimate over the reasonable and supportable forecast period. The Moody's baseline scenario was weighted at 10%, the downside 75th percentile S-2 scenario was weighted at 10%, the downside 90th percentile S-3 scenario was weighted at 50%, the slower trend growth scenario was weighted at 20% and the stagflation scenario was weighted at 10%. During the year ended December 31, 2022, the allowance for credit losses increased primarily due to loan growth during the period and the updated economic forecast. The current forecast reflects, among other things, improvements in forecast levels of home prices, commercial real estate prices and gross domestic product compared with the forecast at December 31, 2021. However, the rate of improvement in forecast economic variables slowed compared with the forecast at December 31, 2021.

During the year ended December 31, 2022, the Company purchased a pool of lines of credit secured by cash value life insurance totaling $472.3 million. This purchase resulted in additions to the allowance for credit losses of approximately $1.8 million between the commercial, financial and agricultural and consumer loan segments. During the year ended December 31, 2020, the Company sold $87.5 million of selected hotel loans from its commercial real estate portfolio. This sale resulted in charge offs of $17.2 million and a loss on sale of loans of $386,000. The Company designated a portfolio of consumer installment loans, totaling $165.9 million at December 31, 2020, as held for sale during the third and fourth quarters of 2020. The transfer to held for sale resulted in $1.6 million in charge offs and a provision release of approximately $6.7 million.

The following table details activity in the allowance for credit losses by portfolio segment for the periods indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Balance, December 31, 2021	$	26,829	$	6,097	$	476	$	3,231	$	401	$	2,729


Provision for loan losses	21,307		3,360		(1,082)		(1,113)		(44)		(1,317)
Loans charged off	(18,635)		(4,926)		(265)		—		—		(5,452)
Recoveries of loans previously charged off	9,954		882		1,045		—		—		5,065
Balance, December 31, 2022	$	39,455	$	5,413	$	174	$	2,118	$	357	$	1,025

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2021	$	22,045	$	77,831	$	27,943	$	167,582


Provision for loan losses	9,749		(7,049)		28,799		52,610
Loans charged off	(27)		(3,574)		(196)		(33,075)
Recoveries of loans previously charged off	892		225		497		18,560
Balance, December 31, 2022	$	32,659	$	67,433	$	57,043	$	205,677


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Year ended December 31, 2021
Balance, January 1, 2021	$	7,359	$	4,076	$	1,929	$	3,666	$	791	$	3,879

Initial allowance for PCD assets	9,432		—		—		—		—		—
Provision for loan losses	12,071		7,330		(1,944)		(435)		(390)		(2,352)
Loans charged off	(7,760)		(6,248)		(1,188)		—		—		(3,668)
Recoveries of loans previously charged off	5,727		939		1,679		—		—		4,870
Balance, December 31, 2021	$	26,829	$	6,097	$	476	$	3,231	$	401	$	2,729

	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Year ended December 31, 2021
Balance, January 1, 2021	$	45,304	$	88,894	$	43,524	$	199,422

Initial allowance for PCD assets	—		—		—		9,432
Provision for loan losses	(23,532)		(9,784)		(16,045)		(35,081)
Loans charged off	(233)		(1,852)		(667)		(21,616)
Recoveries of loans previously charged off	506		573		1,131		15,425
Balance, December 31, 2021	$	22,045	$	77,831	$	27,943	$	167,582


(dollars in thousands)	Commercial, Financial and Agricultural		Consumer		Indirect Automobile		Mortgage Warehouse		Municipal		Premium Finance
Year ended December 31, 2020
Balance, January 1, 2020	$	4,567	$	3,784	$	—	$	640	$	484	$	2,550
Adjustment to allowance for adoption of ASU 2016-13	2,587		8,012		4,109		463		(92)		4,471
Provision for loan losses	8,963		(3,831)		(235)		2,563		399		(198)
Loans charged off	(10,647)		(5,642)		(3,602)		—		—		(6,133)
Recoveries of loans previously charged off	1,889		1,753		1,657		—		—		3,189
Balance, December 31, 2020	$	7,359	$	4,076	$	1,929	$	3,666	$	791	$	3,879


	Real Estate – Construction and Development		Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Year ended December 31, 2020
Balance, January 1, 2020	$	5,995	$	9,666	$	10,503	$	38,189
Adjustment to allowance for adoption of ASU 2016-13	12,248		27,073		19,790		78,661
Provision for loan losses	26,327		78,210		13,290		125,488
Loans charged off	(83)		(27,504)		(853)		(54,464)
Recoveries of loans previously charged off	817		1,449		794		11,548
Balance, December 31, 2020	$	45,304	$	88,894	$	43,524	$	199,422