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Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

Loans are presented in the Consolidated Statements of Financial Condition net of deferred loan fees and costs, and discounts related to purchased loans. Net deferred fees were $6.0 million as of December 31, 2020 and net deferred costs were $2.8 million as of December 31, 2019 and discounts on purchased loans were $7.0 million and $8.5 million at December 31, 2020 and 2019, respectively. The following table provides outstanding balances related to each of our loan types as of December 31:


	2020		2019
	Total Loans		Originated Loans		Acquired Loans		Total Loans
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,555,986	$	1,212,026	$	29,827	$	1,241,853
Time and demand	1,541,382
Commercial credit cards	14,604
Real estate construction	427,221		442,777		6,262		449,039
Residential real estate	1,750,592		1,415,808		265,554		1,681,362
Residential first lien	1,144,323
Residential junior lien/home equity	606,269
Commercial real estate	2,211,569		1,958,346		159,173		2,117,519
Multifamily	371,239
Nonowner occupied	1,421,151
Owner occupied	419,179
Loans to individuals	815,815		685,416		13,959		699,375
Automobile	712,800
Consumer credit cards	12,360
Consumer other	90,655
Total loans	$	6,761,183	$	5,714,373	$	474,775	$	6,189,148

The above table reflects loan categories used in the calculation of the allowance for credit losses. With the adoption of CECL in 2020, eleven categories with similar risk characteristics were identified. The totals provided for 2019 reflect the categories used in 2019 under the incurred methodology.

Commercial, financial, agricultural and other loans at December 31, 2020 includes $478.9 million in PPP loans for small businesses who meet the necessary eligibility requirements. PPP loans are 100% guaranteed by the SBA under the CARES Act and are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the PPP requirements. Because PPP loans are fully guaranteed by the SBA, there is no allowance for credit losses recognized for these loans. Although the Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program, there could be risks and liability to the Company associated with participation in the program.

First Commonwealth’s loan portfolio includes five primary loan categories. When calculating the allowance for credit losses these categories are classified into eleven portfolio segments. The composition of loans by portfolio segment includes;

Commercial, financial, agricultural and other

Time & Demand - Consists primarily of commercial and industrial loans. This category consists of loans that are typically cash flow dependent and therefore have different risk and loss characteristics than other commercial loans. Loans in this category include revolving and term structures with fixed and variable interest rates. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.

Commercial Credit Cards - Consists of unsecured credit cards for commercial customers. These commercial credit cards have separate characteristics outside of normal commercial non-real estate loans, as they tend to have shorter overall duration. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.

Real estate construction

Includes both 1-4 family and commercial construction loans. The risk and loss characteristics of the construction category are different than other real estate secured categories due to the collateral being at various stages of completion. The primary

macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and measures of completed construction projects.

Residential real estate

Residential first lien - Consists of loans with collateral of 1-4 family residencies with a senior lien position. The risk and loss characteristics are unique for this group because the collateral for these loans are the borrower’s primary residence. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.

Residential Junior Lien/Home Equity - Consists of loans with collateral of 1-4 family residencies with an open end line of credit or junior lien position. The junior lien position for the majority of these loans provides a higher risk of loss than other residential real estate loans. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.

Commercial real estate

Multifamily - Consists of loans secured by commercial multifamily properties. Real estate related to rentals to consumers could provide unique risk and loss characteristics. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of commercial real estate values and rental vacancy.

Nonowner Occupied - Consists of loans secured by commercial real estate non-owner occupied and provides different loss characteristics than other real estate categories. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.

Owner Occupied - Consists of loans secured by commercial real estate owner occupied properties. The risk and loss characteristics of this category were considered different than other real estate categories because it is owner occupied and would impact the ability to conduct business. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.

Loans to individuals

Automobile - Consists of both direct and indirect loans with automobiles and recreational vehicles held as collateral. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and automobile retention value.

Consumer Credit Cards – Consists of unsecured consumer credit cards The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and economic conditions measured by GDP.

Other Consumer - Consists of lines of credit, student loans and other consumer loans, not secured by real estate or autos. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and the level of household debt.

The allowance for credit losses is calculated by pooling loans of similar credit risk characteristics and applying a discounted cash flow methodology after incorporating probability of default and loss given default estimates. Probability of default represents an estimate of the likelihood of default and loss given default measures the expected loss upon default. Inputs impacting the expected losses include a forecast of macroeconomic factors, using a weighted forecast from a nationally recognized firm. Our model incorporates a one-year forecast of macroeconomic factors, after which the factors revert back to the historical mean over a one-year period. The most significant macroeconomic factor used in estimating credit losses is the national unemployment rate. The forecasted value for national unemployment at December 31, 2020 was 6.68% and during the one-year forecast period it was projected to average 7.25%, with a peak of 7.48%.

Credit Quality Information

As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our commercial loans:


Pass						Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.

Other Assets Especially Mentioned (OAEM)						Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.

Substandard						Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.

Doubtful						Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.

The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance.

The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:


	2020
			Non-Pass
	Pass		OAEM		Substandard		Doubtful		Loss		Total Non-Pass		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,491,916	$	48,233	$	15,837	$	—	$	—	$	64,070	$	1,555,986
Time and demand	1,477,312		48,233		15,837		—		—		64,070		1,541,382
Commercial credit cards	14,604		—		—		—		—		—		14,604
Real estate construction	426,663		504		54		—		—		558		427,221
Residential real estate	1,740,992		1,902		7,698		—		—		9,600		1,750,592
Residential first lien	1,138,409		1,780		4,134		—		—		5,914		1,144,323
Residential junior lien/home equity	602,583		122		3,564		—		—		3,686		606,269
Commercial real estate	1,983,258		175,995		52,316		—		—		228,311		2,211,569
Multifamily	369,883		131		1,225		—		—		1,356		371,239
Nonowner occupied	1,216,252		161,336		43,563		—		—		204,899		1,421,151
Owner occupied	397,123		14,528		7,528		—		—		22,056		419,179
Loans to individuals	815,541		—		274		—		—		274		815,815
Automobile	712,539		—		261		—		—		261		712,800
Consumer credit cards	12,360		—		—		—		—		—		12,360
Consumer other	90,642		—		13		—		—		13		90,655
Total	$	6,458,370	$	226,634	$	76,179	$	—	$	—	$	302,813	$	6,761,183


	2019
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Originated Loans
Pass	$	1,171,363	$	442,751	$	1,406,845	$	1,918,690	$	685,108	$	5,624,757
Non-Pass
OAEM	29,359		26		475		13,533		—		43,393
Substandard	11,304		—		8,488		26,123		308		46,223
Doubtful	—		—		—		—		—		—
Total Non-Pass	40,663		26		8,963		39,656		308		89,616
Total	$	1,212,026	$	442,777	$	1,415,808	$	1,958,346	$	685,416	$	5,714,373

Acquired Loans
Pass	$	27,696	$	5,697	$	262,630	$	153,814	$	13,947	$	463,784
Non-Pass
OAEM	2,009		565		537		2,072		—		5,183
Substandard	122		—		2,387		3,287		12		5,808
Doubtful	—		—		—		—		—		—
Total Non-Pass	2,131		565		2,924		5,359		12		10,991
Total	$	29,827	$	6,262	$	265,554	$	159,173	$	13,959	$	474,775

The following table summarizes the loan risk rating category by loan type including term loans on an amortized cost basis by origination year as of December 31, 2020:


	Term Loans												Revolving Loans
	2020		2019		2018		2017		2016		Prior				Total
	(dollars in thousands)
Time and demand	$	598,053	$	193,601	$	142,224	$	72,277	$	74,228	$	83,313	$	377,686	$	1,541,382
Pass	597,405		189,834		140,473		63,137		68,007		65,418		353,038		1,477,312
OAEM	93		3,373		972		8,820		6,182		8,043		20,750		48,233
Substandard	555		394		779		320		39		9,852		3,898		15,837
Commercial credit cards	—		—		—		—		—		—		14,604		14,604
Pass	—		—		—		—		—		—		14,604		14,604


Real estate construction	150,493		133,195		104,167		34,803		389		1,009		3,165		427,221
Pass	150,493		133,195		104,167		34,803		389		709		2,907		426,663
OAEM	—		—		—		—		—		246		258		504
Substandard	—		—		—		—		—		54		—		54
Residential first lien	316,052		184,550		142,823		110,365		91,495		297,057		1,981		1,144,323
Pass	316,028		184,533		142,467		110,260		91,059		292,158		1,904		1,138,409
OAEM	—		—		83		—		100		1,520		77		1,780
Substandard	24		17		273		105		336		3,379		—		4,134
Residential junior lien/home equity	3,055		5,783		4,545		2,005		1,303		7,127		582,451		606,269
Pass	3,055		5,698		4,545		2,005		1,303		6,909		579,068		602,583
OAEM	—		—		—		—		—		112		10		122
Substandard	—		85		—		—		—		106		3,373		3,564
Multifamily	76,249		16,287		69,439		66,963		34,383		106,328		1,590		371,239
Pass	76,249		16,287		69,439		66,963		34,383		104,972		1,590		369,883
OAEM	—		—		—		—		—		131		—		131
Substandard	—		—		—		—		—		1,225		—		1,225
Nonowner occupied	105,861		199,280		161,018		214,915		217,883		518,052		4,142		1,421,151
Pass	105,861		190,301		139,643		181,659		175,148		419,900		3,740		1,216,252
OAEM	—		8,979		21,375		26,339		37,762		66,752		129		161,336
Substandard	—		—		—		6,917		4,973		31,400		273		43,563
Owner occupied	59,519		72,313		61,079		40,796		27,415		152,555		5,502		419,179
Pass	58,551		70,726		55,478		39,351		26,359		141,376		5,282		397,123
OAEM	968		684		4,736		1,421		114		6,572		33		14,528
Substandard	—		903		865		24		942		4,607		187		7,528
Automobile	350,293		202,923		96,355		45,218		14,285		3,726		—		712,800
Pass	350,293		202,827		96,336		45,187		14,255		3,641		—		712,539

Substandard	—		96		19		31		30		85		—		261
Consumer credit cards	—		—		—		—		—		—		12,360		12,360
Pass	—		—		—		—		—		—		12,360		12,360


Consumer other	7,814		14,464		10,752		1,965		711		6,383		48,566		90,655
Pass	7,814		14,464		10,752		1,965		711		6,373		48,563		90,642

Substandard	—		—		—		—		—		10		3		13
Total	$	1,667,389	$	1,022,396	$	792,402	$	589,307	$	462,092	$	1,175,550	$	1,052,047	$	6,761,183

Portfolio Risks

The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital and liquidity. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting loans. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors.

Total gross charge-offs for the years ended December 31, 2020 and 2019 were $19.3 million and $12.3 million, respectively.

Age Analysis of Past Due Loans by Segment

The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.


	2020
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	146	$	62	$	112	$	3,317	$	3,637	$	1,552,349	$	1,555,986
Time and demand	97		28		23		3,317		3,465		1,537,917		1,541,382
Commercial credit cards	49		34		89		—		172		14,432		14,604
Real estate construction	936		—		—		54		990		426,231		427,221
Residential real estate	3,883		1,492		769		6,824		12,968		1,737,624		1,750,592
Residential first lien	1,775		660		267		3,489		6,191		1,138,132		1,144,323
Residential junior lien/home equity	2,108		832		502		3,335		6,777		599,492		606,269
Commercial real estate	237		160		3		35,072		35,472		2,176,097		2,211,569
Multifamily	—		—		—		460		460		370,779		371,239
Nonowner occupied	18		104		—		31,822		31,944		1,389,207		1,421,151
Owner occupied	219		56		3		2,790		3,068		416,111		419,179
Loans to individuals	2,870		852		639		274		4,635		811,180		815,815
Automobile	2,090		417		94		261		2,862		709,938		712,800
Consumer credit cards	52		39		123		—		214		12,146		12,360
Consumer other	728		396		422		13		1,559		89,096		90,655
Total	$	8,072	$	2,566	$	1,523	$	45,541	$	57,702	$	6,703,481	$	6,761,183


	2019
	30 - 59 days past due		60 - 89 days past due		90 days and greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Originated Loans
Commercial, financial, agricultural and other	$	391	$	57	$	140	$	8,780	$	9,368	$	1,202,658	$	1,212,026
Real estate construction	198		—		9		—		207		442,570		442,777
Residential real estate	3,757		749		736		6,646		11,888		1,403,920		1,415,808
Commercial real estate	227		114		—		6,609		6,950		1,951,396		1,958,346
Loans to individuals	4,070		1,020		931		307		6,328		679,088		685,416
Total	$	8,643	$	1,940	$	1,816	$	22,342	$	34,741	$	5,679,632	$	5,714,373

Acquired Loans
Commercial, financial, agricultural and other	$	1	$	—	$	1	$	74	$	76	$	29,751	$	29,827
Real estate construction	—		—		—		—		—		6,262		6,262
Residential real estate	304		207		221		1,949		2,681		262,873		265,554
Commercial real estate	—		107		—		298		405		158,768		159,173
Loans to individuals	87		89		35		12		223		13,736		13,959
Total	$	392	$	403	$	257	$	2,333	$	3,385	$	471,390	$	474,775

Nonaccrual Loans

The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due.

When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.

Nonperforming Loans

Management considers loans to be nonperforming when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Nonperforming loans includes nonaccrual loans and all troubled debt restructured loans. When management identifies a loan as nonperforming, the credit loss is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the loan is less than the recorded investment in the loan, a credit loss is recognized through an allowance or a charge-off to the allowance for credit losses.

When the ultimate collectability of the total principal of a nonperforming loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of a nonperforming loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.

There was one nonperforming loan totaling $13 thousand held for sale at December 31, 2020 and no nonperforming loans held for sale as of December 31, 2019. There were no gains on nonperforming loans held for sale during the year ended December 31, 2020. Total gains of $0.4 million and $1.8 million were recognized on sales of nonperforming loans during the years ended December 31, 2019, and 2018 respectively.

The following tables include the recorded investment and unpaid principal balance for nonperforming loans with the associated allowance amount, if applicable, as of December 31, 2020 and 2019. Also presented are the average recorded investment in nonperforming loans and the related amount of interest recognized while the loan was considered nonperforming for the years ended December 31, 2020, 2019 and 2018. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.


	2020
	Recorded investment		Unpaid principal balance		Related specific allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other	$	2,025	$	2,725			$	6,371	$	80
Time and demand	2,025		2,725				6,371		80
Real estate construction	54		53				146		14
Residential real estate	10,939		13,258				11,913		335
Residential first lien	6,062		7,575				6,605		241
Residential junior lien/home equity	4,877		5,683				5,308		94
Commercial real estate	20,650		23,641				22,287		184
Multifamily	1		82				1		—
Nonowner occupied	16,786		19,459				18,536		82
Owner occupied	3,863		4,100				3,750		102
Loans to individuals	418		447				470		13
Automobile	405		430				447		13
Consumer other	13		17				23		—
Subtotal	34,086		40,124				41,187		626
With a specific allowance recorded:
Commercial, financial, agricultural and other	4,210		9,377		1,268		1,544		3
Time and demand	4,210		9,377		1,268		1,544		3
Real estate construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Residential first lien	—		—		—		—		—
Residential junior lien/home equity	—		—		—		—		—
Commercial real estate	15,757		15,830		3,638		7,997		10
Multifamily	459		470		116		395		—
Nonowner occupied	15,060		15,122		3,508		7,363		—
Owner occupied	238		238		14		239		10
Loans to individuals	—		—		—		—		—
Automobile	—		—		—		—		—
Consumer other	—		—		—		—		—
Subtotal	19,967		25,207		4,906		9,541		13
Total	$	54,053	$	65,331	$	4,906	$	50,728	$	639


	2019
	Recorded investment		Unpaid principal balance		Related specific allowance		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
Originated Loans:
With no related specific allowance recorded:
Commercial, financial, agricultural and other	$	1,848	$	6,997			$	2,411	$	66
Real estate construction	—		—				—		—
Residential real estate	10,372		12,437				10,819		365
Commercial real estate	3,015		3,210				7,455		156
Loans to individuals	406		640				371		17
Subtotal	15,641		23,284				21,056		604
With a specific allowance recorded:
Commercial, financial, agricultural and other	8,290		10,032		$	1,580	4,110		77
Real estate construction	—		—		—		—		—
Residential real estate	474		498		1		241		—
Commercial real estate	5,293		5,308		851		1,747		3
Loans to individuals	—		—		—		—		—
Subtotal	14,057		15,838		2,432		6,098		80
Total	$	29,698	$	39,122	$	2,432	$	27,154	$	684
Acquired Loans:
With no related specific allowance recorded:
Commercial, financial, agricultural and other	$	73	$	73			$	2,479	$	—
Real estate construction	—		—				—		—
Residential real estate	2,136		2,585				1,986		8
Commercial real estate	298		320				747		18
Loans to individuals	12		15				13		—
Subtotal	2,519		2,993				5,225		26
With a specific allowance recorded:
Commercial, financial, agricultural and other	—		—		$	—	—		—
Real estate construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Loans to individuals	—		—		—		—		—
Subtotal	—		—		—		—		—
Total	$	2,519	$	2,993	$	—	$	5,225	$	26


	2018
	Originated				Acquired
	Average recorded investment		Interest Income Recognized		Average recorded investment		Interest Income Recognized
	(dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other	$	18,480	$	602	$	214	$	10
Real estate construction	—		—		—		—
Residential real estate	10,651		271		1,906		5
Commercial real estate	7,919		177		1,565		—
Loans to individuals	310		11		16		—
Subtotal	37,360		1,061		3,701		15
With a specific allowance recorded:
Commercial, financial, agricultural and other	2,531		20		11		—
Real estate construction	—		—		—		—
Residential real estate	504		13		—		—
Commercial real estate	991		4		—		—
Loans to individuals	—		—		—		—
Subtotal	4,026		37		11		—
Total	$	41,386	$	1,098	$	3,712	$	15

Unfunded commitments related to nonperforming loans were $0.2 million and $1.7 million at December 31, 2020 and 2019, respectively. After considering the collateral related to these commitments, a reserve of $26 thousand and $12 thousand was established for these off balance sheet exposures at December 31, 2020 and 2019, respectively.

Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. Troubled debt restructured loans are considered to be nonperforming loans.

In March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 national

emergency. These modifications typically provide for the deferral of both principal and interest for 90 days. The CARES Act,

along with a joint agency statement issued by banking regulators, provides that short-term modifications, meeting certain

criteria and in response to COVID-19, do not need to be accounted for as a troubled debt restructured loans. Additionally, short-term loan modifications that are not accounted for as a troubled debt restructured loan, in accordance with the CARES Act,

would remain classified as current during the deferral period and therefore are not reflected in the past due loan tables provided

on the prior page. During the year ended December 31, 2020, the Company granted approximately 6,800 short-term loan

modifications to its customers with aggregate principal balances of $1.4 billion. Most of these deferrals were for a 90-day

period, which expired before year end. As of December 31, 2020, the balance of loans in deferral status had fallen to $113.8 million. It is likely that some customers that are no longer in the deferral period will be granted an additional 90 day deferral in order to provide support for the continued impact of COVID-19. The decision to grant an additional forbearance will be credit driven and will be based on a complete evaluation of the customer's financial circumstances.

The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:


	2020		2019		2018
	(dollars in thousands)
Troubled debt restructured loans
Accrual status	$	8,512	$	7,542	$	8,757
Nonaccrual status	14,740		6,037		11,761
Total	$	23,252	$	13,579	$	20,518
Commitments
Letters of credit	$	60	$	60	$	60
Unused lines of credit	11		163		1,027
Total	$	71	$	223	$	1,087

The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:


	2020
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	4	$	—	$	629	$	2,176	$	2,805	$	2,196	$	636
Time and demand	4	—		629		2,176		2,805		2,196		636


Residential real estate	18	—		33		917		950		791		—
Residential first lien	9	—		33		513		546		411		—
Residential junior lien/home equity	9	—		—		404		404		380		—
Commercial real estate	5	—		—		10,857		10,857		10,758		—

Nonowner occupied	4	—		—		10,289		10,289		10,263		—
Owner occupied	1	—		—		568		568		495		—
Loans to individuals	14	—		114		148		262		224		—
Automobile	14	$	—	$	114	$	148	262		$	224	$	—


Total	41	$	—	$	776	$	14,098	$	14,874	$	13,969	$	636


	2019
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	2	$	—	$	—	$	156	$	156	$	154	$	—

Residential real estate	20	17		204		965		1,186		1,059		—
Commercial real estate	5	—		556		6,261		6,817		594		—
Loans to individuals	11	—		—		143		143		121		—
Total	38	$	17	$	760	$	7,525	$	8,302	$	1,928	$	—


	2018
		Type of Modification
	Number of Contracts	Extend Maturity		Modify Rate		Modify Payments		Total Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Specific Reserve
	(dollars in thousands)
Commercial, financial, agricultural and other	3	$	74	$	—	$	8,250	$	8,324	$	6,104	$	—

Residential real estate	37	242		241		1,316		1,799		1,638		—
Commercial real estate	3	—		—		1,016		1,016		975		—
Loans to individuals	15	—		89		53		142		112		—
Total	58	$	316	$	330	$	10,635	$	11,281	$	8,829	$	—

The troubled debt restructurings included in the above tables are also included in the nonperforming loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2020, 2019 and 2018, $0.8 million, $0.8 million and $0.3 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization. For 2020, 2019 and 2018, the changes in loan balances between the pre-modification balance and post-modification balance are due to customer payments. In 2020, the change between the pre-modification and post-modification balance for commercial real estate loans is primarily due to the payoff of one large commercial relationship that restructured during the year.

A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. The following table provides information related to loans that were restructured within the past twelve months and that were considered to be in default during the year ending December 31:


	2020			2019			2018
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(dollars in thousands)




Residential real estate	1	$	34	—	$	—	1	$	49

Residential junior lien/home equity	1	34




Loans to individuals	2	74		—	—		—	—
Automobile	2	74


Total	3	$	108	—	$	—	1	$	49

The following tables provide detail related to the allowance for credit losses for the years ended December 31.


	2020
	Beginning balance		Impact of adoption of CECL		Charge-offs		Recoveries		Provision (credit)a		Ending balance
	(dollars in thousands)
Commercial, financial, agricultural and other	$	20,234	$	1,478	$	(6,318)	$	314	$	1,479	$	17,187
Time and demand	—		21,242		(6,220)		301		1,515		16,838
Commercial credit cards	—		470		(98)		13		(36)		349
Real estate construction	2,558		562		—		26		4,820		7,966
Residential real estate	4,093		7,276		(1,040)		414		3,615		14,358
Residential first liens	—		7,326		(550)		296		847		7,919
Residential junior liens/home equity	—		4,043		(490)		118		2,768		6,439
Commercial real estate	19,768		(207)		(4,939)		312		27,019		41,953
Multifamily	—		1,647		—		—		4,593		6,240
Nownowner occupied	—		12,317		(4,678)		187		20,588		28,414
Owner occupied	—		5,597		(261)		125		1,838		7,299
Loans to individuals	4,984		4,284		(6,953)		991		16,539		19,845
Automobile	—		6,106		(3,954)		745		13,236		16,133
Consumer credit cards	—		221		(595)		36		973		635
Consumer other	—		2,941		(2,404)		210		2,330		3,077
Total	$	51,637	$	13,393	$	(19,250)	$	2,057	$	53,472	$	101,309

a) The provision (credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.


	December 31, 2020
							Loans
	Ending balance		Ending balance: individually evaluated for credit losses		Ending balance: collectively evaluated for credit losses		Ending balance		Ending balance: individually evaluated for credit losses		Ending balance: collectively evaluated for credit losses
	(dollars in thousands)
Commercial, financial, agricultural and other	$	17,187	$	1,268	$	15,919	$	1,555,986	$	5,411	$	1,550,575
Time and demand	16,838		1,268		15,570		1,541,382		5,411		1,535,971
Commercial credit cards	349		—		349		14,604		—		14,604
Real estate construction	7,966		—		7,966		427,221		—		427,221
Residential real estate	14,358		—		14,358		1,750,592		1,105		1,749,487
Residential first liens	7,919		—		7,919		1,144,323		528		1,143,795
Residential junior liens/home equity	6,439		—		6,439		606,269		577		605,692
Commercial real estate	41,953		3,638		38,315		2,211,569		34,947		2,176,622
Multifamily	6,240		116		6,124		371,239		459		370,780
Nownowner occupied	28,414		3,508		24,906		1,421,151		31,450		1,389,701
Owner occupied	7,299		14		7,285		419,179		3,038		416,141
Loans to individuals	19,845		—		19,845		815,815		—		815,815
Automobile	16,133		—		16,133		712,800		—		712,800
Consumer credit cards	635		—		635		12,360		—		12,360
Consumer other	3,077		—		3,077		90,655		—		90,655
Total	$	101,309	$	4,906	$	96,403	$	6,761,183	$	41,463	$	6,719,720


	2019
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Allowance for credit losses:
Originated Loans:
Beginning balance	$	19,235	$	2,002	$	3,934	$	18,382	$	4,033	$	47,586
Charge-offs	(2,667)		—		(986)		(632)		(5,747)		(10,032)
Recoveries	245		158		246		189		611		1,449
Provision (credit)	3,408		398		897		1,792		6,087		12,582
Ending balance	20,221		2,558		4,091		19,731		4,984		51,585
Acquired Loans:
Beginning balance	$	139	$	—	$	35	$	4	$	—	$	178
Charge-offs	(726)		—		(56)		(1,376)		(84)		(2,242)
Recoveries	81		—		69		—		15		165
Provision (credit)	519		—		(46)		1,409		69		1,951
Ending balance	13		—		2		37		—		52
Total ending balance	$	20,234	$	2,558	$	4,093	$	19,768	$	4,984	$	51,637
Ending balance: individually evaluated for impairment	$	1,580	$	—	$	1	$	851	$	—	$	2,432
Ending balance: collectively evaluated for impairment	18,654		2,558		4,092		18,917		4,984		49,205
Loans:
Ending balance	1,241,853		449,039		1,681,362		2,117,519		699,375		6,189,148
Ending balance: individually evaluated for impairment	9,246		—		1,741		6,846		—		17,833
Ending balance: collectively evaluated for impairment	1,232,607		449,039		1,679,621		2,110,673		699,375		6,171,315


	2018
	Commercial, financial, agricultural and other		Real estate construction		Residential real estate		Commercial real estate		Loans to individuals		Total
	(dollars in thousands)
Allowance for credit losses:
Originated Loans:
Beginning balance	$	23,418	$	1,349	$	2,753	$	17,328	$	3,404	$	48,252
Charge-offs	(5,201)		—		(1,217)		(3,930)		(4,554)		(14,902)
Recoveries	746		135		233		153		579		1,846
Provision (credit)	272		518		2,165		4,831		4,604		12,390
Ending balance	19,235		2,002		3,934		18,382		4,033		47,586
Acquired Loans:
Beginning balance	11		—		6		29		—		46
Charge-offs	(93)		—		(96)		—		(22)		(211)
Recoveries	42		6		128		—		26		202
Provision (credit)	179		(6)		(3)		(25)		(4)		141
Ending balance	139		—		35		4		—		178
Total ending balance	$	19,374	$	2,002	$	3,969	$	18,386	$	4,033	$	47,764
Ending balance: individually evaluated for impairment	$	928	$	—	$	107	$	596	$	—	$	1,631
Ending balance: collectively evaluated for impairment	18,446		2,002		3,862		17,790		4,033		46,133
Loans:
Ending balance	1,138,473		358,978		1,562,405		2,123,544		590,739		5,774,139
Ending balance: individually evaluated for impairment	11,631		—		3,747		5,710		—		21,088
Ending balance: collectively evaluated for impairment	1,126,842		358,978		1,558,658		2,117,834		590,739		5,753,051