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Note 3 - Loans | 12 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 3. LOANS The loan portfolio is classified based on the underlying collateral utilized to secure each loan for financial reporting purposes. This classification is consistent with the Quarterly Report of Condition and Income filed by ServisFirst Bank with the Federal Deposit Insurance Corporation (“FDIC”). Commercial, financial and agricultural – Includes loans to business enterprises issued for commercial, industrial, agricultural production and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows. Real estate – construction – Includes loans secured by real estate to finance land development or the construction of industrial, commercial or residential buildings. Repayment is dependent upon the completion and eventual sale, refinance or operation of the related real estate project. Owner-occupied commercial real estate mortgage – Includes loans secured by nonfarm nonresidential properties for which the primary source of repayment is the cash flow from the ongoing operations conducted by the party that owns the property. 1-4 family real estate mortgage – Includes loans secured by residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower. Other real estate mortgage – Includes loans secured by nonowner-occupied properties, including office buildings, industrial buildings, warehouses, retail buildings, multifamily residential properties and farmland. Repayment is primarily dependent on income generated from the underlying collateral. Consumer – Includes loans to individuals not secured by real estate. Repayment is dependent upon the personal cash flow of the borrower. The composition of loans at December 31, 2023 and 2022 is summarized as follows:
|  | December 31, |
|  | 2023 |  |  | 2022 |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 2,823,986 |  |  | $ | 3,145,317 |
Real estate - construction |  |  | 1,519,619 |  |  |  | 1,532,388 |
Real estate - mortgage: |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 2,257,163 |  |  |  | 2,199,280 |
1-4 family mortgage |  |  | 1,249,938 |  |  |  | 1,146,831 |
Other mortgage |  |  | 3,744,346 |  |  |  | 3,597,750 |
Total real estate - mortgage |  |  | 7,251,447 |  |  |  | 6,943,861 |
Consumer |  |  | 63,777 |  |  |  | 66,402 |
Total Loans |  |  | 11,658,829 |  |  |  | 11,687,968 |
Less: Allowance for credit losses |  |  | (153,317 | ) |  |  | (146,297 | )
Net Loans |  | $ | 11,505,512 |  |  | $ | 11,541,671 |
Changes in the ACL during the years ended December 31, 2023, 2022 and 2021 are as follows:
|  | Years Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In Thousands) |
Balance, beginning of year |  | $ | 146,297 |  |  | $ | 116,660 |  |  | $ | 87,942 |
Loans charged off |  |  | (14,581 | ) |  |  | (10,137 | ) |  |  | (4,114 | )
Recoveries |  |  | 2,886 |  |  |  | 2,167 |  |  |  | 1,315 |
Provision for credit losses |  |  | 18,715 |  |  |  | 37,607 |  |  |  | 31,517 |
Balance, end of year |  | $ | 153,317 |  |  | $ | 146,297 |  |  | $ | 116,660 |
GAAP requires a CECL methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology, the ACL is measured on a collective basis for pools of loans with similar risk characteristics. For loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan segments collectively evaluated, losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period losses are reverted to long-term historical averages. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The Company uses the discounted cash flow (“DCF”) method to estimate ACL for all loan pools except for commercial and industrial (“C&I”) revolving lines of credit and credit cards. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment rate and gross domestic product (“GDP”) as loss drivers. Consistent forecasts of the loss drivers are used across the loan segments. At December 31, 2023 and 2022, the Company utilized a reasonable and supportable forecast period of twelve months followed by a six-month straight-line reversion to long-term averages. The Company leveraged economic projections from reputable and independent sources to inform its loss driver forecasts. At December 31, 2023, the Company expects the national unemployment rate to fall during the forecast period with a rising national GDP growth rate, with both economic indicators showing improvement when compared to the forecast at December 31, 2022. The Company uses a loss-rate method to estimate expected credit losses for its C&I revolving lines of credit and a remaining life methodology on credit card pools. The C&I revolving lines of credit pool incorporates a probability of default (“PD”) and loss given default (“LGD”) modeling approach. This approach involves estimating the pool average life and then using historical correlations of default and loss experience over time to calculate the lifetime PD and LGD. These two inputs are then applied to the outstanding pool balance. The credit card pool incorporates a remaining life modeling approach, which utilizes an attrition-based method to estimate the remaining life of the pool. A quarterly average loss rate is then calculated using the Company’s historical loss data. The model reduces the pool balance quarterly on a straight-line basis over the estimated life of the pool. The quarterly loss rate is multiplied by the outstanding balance at each period-end resulting in an estimated loss for each quarter. The sum of estimated loss for all quarters is the total calculated reserve for the pool. Management has applied the loss-rate method to C&I lines of credit and to credit cards due to their generally short-term nature. An expected loss ratio is applied based on internal and peer historical losses. Each loan pool is adjusted for qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation. The Company considers factors that are relevant within the qualitative framework which include the following: lending policy, changes in nature and volume of loans, staff experience, changes in volume and trends of problem loans, concentration risk, trends in underlying collateral values, external factors, quality of loan review system, risks within new markets, and other economic conditions. Inherent risks in the loan portfolio will differ based on type of loan. Specific risk characteristics by loan portfolio segment are listed below: Commercial and industrial loans include risks associated with borrower’s cash flow, debt service coverage and management’s expertise. These loans are subject to the risk that the Company may have difficulty converting collateral to a liquid asset if necessary, as well as risks associated with degree of specialization, mobility and general collectability in a default situation. These commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates. Real estate construction loans include risks associated with the borrower’s credit-worthiness, contractor’s qualifications, borrower and contractor performance, and the overall risk and complexity of the proposed project. Construction lending is also subject to risks associated with sub-market dynamics, including population, employment trends and household income. During times of economic stress, this type of loan has typically had a greater degree of risk than other loan types. Real estate mortgage loans consist of loans secured by commercial and residential real estate. Commercial real estate lending is dependent upon successful management, marketing and expense supervision necessary to maintain the property. Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy. Also, commercial real estate loans typically involve relatively large loan balances to a single borrower. Residential real estate lending risks are generally less significant than those of other loans. Real estate lending risks include fluctuations in the value of real estate, bankruptcies, economic downturn and customer financial problems. Consumer loans carry a moderate degree of risk compared to other loans. They are generally more risky than traditional residential real estate loans but less risky than commercial loans. Risk of default is usually determined by the well-being of the local economies. During times of economic stress, there is usually some level of job loss both nationally and locally, which directly affects the ability of the consumer to repay debt. Changes in the allowance for credit losses, segregated by loan type, during the years ended December 31, 2023 and 2022, respectively, are as follows:
|  | Commercial, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | financial and |  |  | Real estate - |  |  | Real estate - |  |  |  |  |  |  |  |  |
|  | agricultural |  |  | construction |  |  | mortgage |  |  | Consumer |  |  | Total |
|  | (In Thousands) |
|  | Twelve Months Ended December 31, 2023 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2022 |  | $ | 42,830 |  |  | $ | 42,889 |  |  | $ | 58,652 |  |  | $ | 1,926 |  |  | $ | 146,297 |
Charge-offs |  |  | (13,229 | ) |  |  | (108 | ) |  |  | (171 | ) |  |  | (1,073 | ) |  |  | (14,581 | )
Recoveries |  |  | 2,796 |  |  |  | 3 |  |  |  | 2 |  |  |  | 85 |  |  |  | 2,886 |
Provision |  |  | 19,720 |  |  |  | 1,874 |  |  |  | (3,355 | ) |  |  | 476 |  |  |  | 18,715 |
Balance at December 31, 2023 |  | $ | 52,117 |  |  | $ | 44,658 |  |  | $ | 55,128 |  |  | $ | 1,414 |  |  | $ | 153,317 |
|  | Twelve Months Ended December 31, 2022 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 |  | $ | 41,869 |  |  | $ | 26,994 |  |  | $ | 45,829 |  |  | $ | 1,968 |  |  | $ | 116,660 |
Charge-offs |  |  | (9,256 | ) |  |  | - |  |  |  | (221 | ) |  |  | (660 | ) |  |  | (10,137 | )
Recoveries |  |  | 2,012 |  |  |  | - |  |  |  | - |  |  |  | 155 |  |  |  | 2,167 |
Provision |  |  | 8,205 |  |  |  | 15,895 |  |  |  | 13,044 |  |  |  | 463 |  |  |  | 37,607 |
Balance at December 31, 2022 |  | $ | 42,830 |  |  | $ | 42,889 |  |  | $ | 58,652 |  |  | $ | 1,926 |  |  | $ | 146,297 |
|  | Twelve Months Ended December 31, 2021 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 36,370 |  |  | $ | 16,057 |  |  | $ | 33,722 |  |  | $ | 1,793 |  |  | $ | 87,942 |
Charge-offs |  |  | (3,453 | ) |  |  | (14 | ) |  |  | (279 | ) |  |  | (368 | ) |  |  | (4,114 | )
Recoveries |  |  | 1,135 |  |  |  | 52 |  |  |  | 85 |  |  |  | 43 |  |  |  | 1,315 |
Provision |  |  | 7,817 |  |  |  | 10,899 |  |  |  | 12,301 |  |  |  | 500 |  |  |  | 31,517 |
Balance at December 31, 2021 |  | $ | 41,869 |  |  | $ | 26,994 |  |  | $ | 45,829 |  |  | $ | 1,968 |  |  | $ | 116,660 |
We maintain an ACL for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a drawdown on the commitment. The ACL on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these credit losses is recorded as a component of other expense. The allowance for credit losses on unfunded commitments was $575,000 at both December 31, 2023 and 2022. The provision expense for unfunded commitments was zero for the year ended December 31, 2023 and was reduced by $725,000 for the year ended December 31, 2022 compared to December 31, 2021. The credit quality of the loan portfolio is determined no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for current economic conditions defined as follows:
| ● | Pass – loans that are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.
| ● | Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.
| ● | Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the Company will sustain some loss if the weaknesses are not corrected.
| ● | Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.
The tables below presents loan balances classified by credit quality indicator, loan type and based on year of origination as of December 31, 2023 and 2022:
December 31, 2023 |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Revolving |  |  | Revolving lines of credit converted to term loans |  |  | Total |
|  | (In Thousands) |
Commercial, financial, and agricultural |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 341,335 |  |  | $ | 455,281 |  |  | $ | 354,034 |  |  | $ | 162,543 |  |  | $ | 100,032 |  |  | $ | 151,527 |  |  | $ | 1,161,324 |  |  | $ | 491 |  |  | $ | 2,726,567 |
Special Mention |  |  | 4,275 |  |  |  | 1,982 |  |  |  | 5,105 |  |  |  | 5,765 |  |  |  | 1,320 |  |  |  | 3,549 |  |  |  | 21,769 |  |  |  | 7 |  |  |  | 43,772 |
Substandard - accruing |  |  | 1,410 |  |  |  | - |  |  |  | 2,830 |  |  |  | 368 |  |  |  | 9,501 |  |  |  | 27,962 |  |  |  | 4,360 |  |  |  | - |  |  |  | 46,431 |
Substandard -Non-accrual |  |  | - |  |  |  | 2 |  |  |  | 767 |  |  |  | 206 |  |  |  | - |  |  |  | 3,336 |  |  |  | 2,905 |  |  |  | - |  |  |  | 7,216 |
Total Commercial, financial and agricultural |  | $ | 347,020 |  |  | $ | 457,265 |  |  | $ | 362,736 |  |  | $ | 168,882 |  |  | $ | 110,853 |  |  | $ | 186,374 |  |  | $ | 1,190,358 |  |  | $ | 498 |  |  | $ | 2,823,986 |
Current-period gross writeoffs |  | $ | 1,213 |  |  | $ | 4,690 |  |  | $ | 2,531 |  |  | $ | 779 |  |  | $ | 4 |  |  | $ | 2,014 |  |  | $ | 1,998 |  |  | $ | - |  |  | $ | 13,229 |
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 216,745 |  |  | $ | 874,903 |  |  | $ | 283,012 |  |  | $ | 49,668 |  |  | $ | 4,866 |  |  | $ | 16,558 |  |  | $ | 72,156 |  |  | $ | - |  |  | $ | 1,517,908 |
Special Mention |  |  | 589 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 589 |
Substandard - accruing |  |  | - |  |  |  | 33 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 978 |  |  |  | - |  |  |  | - |  |  |  | 1,011 |
Substandard -Non-accrual |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 111 |  |  |  | 111 |
Total Real estate - construction |  | $ | 217,334 |  |  | $ | 874,936 |  |  | $ | 283,012 |  |  | $ | 49,668 |  |  | $ | 4,866 |  |  | $ | 17,536 |  |  | $ | 72,156 |  |  | $ | 111 |  |  | $ | 1,519,619 |
Current-period gross write-offs |  | $ | - |  |  | $ | - |  |  | $ | 19 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 89 |  |  | $ | 108 |
Owner-occupied commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 148,915 |  |  | $ | 478,364 |  |  | $ | 517,667 |  |  | $ | 300,978 |  |  | $ | 181,864 |  |  | $ | 512,752 |  |  | $ | 64,170 |  |  | $ | 844 |  |  | $ | 2,205,554 |
Special Mention |  |  | 5,369 |  |  |  | 1,411 |  |  |  | 7,705 |  |  |  | 8,317 |  |  |  | 8,530 |  |  |  | 7,539 |  |  |  | - |  |  |  | - |  |  |  | 38,871 |
Substandard - accruing |  |  | 1,358 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,292 |  |  |  | - |  |  |  | - |  |  |  | 5,650 |
Substandard -Non-accrual |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,329 |  |  |  | 4,759 |  |  |  | - |  |  |  | - |  |  |  | 7,088 |
Total Owner-occupied commercial |  | $ | 155,642 |  |  | $ | 479,775 |  |  | $ | 525,372 |  |  | $ | 309,295 |  |  | $ | 190,394 |  |  | $ | 524,583 |  |  | $ | 64,170 |  |  | $ | 844 |  |  | $ | 2,257,163 |
Current-period gross write-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 117 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 117 |
1-4 family mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 166,927 |  |  | $ | 376,964 |  |  | $ | 228,183 |  |  | $ | 75,104 |  |  | $ | 40,697 |  |  | $ | 61,046 |  |  | $ | 286,066 |  |  | $ | - |  |  | $ | 1,234,987 |
Special Mention |  |  | 574 |  |  |  | 721 |  |  |  | 2,504 |  |  |  | 1,009 |  |  |  | 3,865 |  |  |  | 439 |  |  |  | 727 |  |  |  | - |  |  |  | 9,839 |
Substandard - accruing |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 425 |  |  |  | 261 |  |  |  | - |  |  |  | 686 |
Substandard -Non-accrual |  |  | 155 |  |  |  | 380 |  |  |  | 741 |  |  |  | 572 |  |  |  | 877 |  |  |  | 901 |  |  |  | 800 |  |  |  | - |  |  |  | 4,426 |
Total 1-4 family mortgage |  | $ | 167,656 |  |  | $ | 378,065 |  |  | $ | 231,428 |  |  | $ | 76,685 |  |  | $ | 45,439 |  |  | $ | 62,811 |  |  | $ | 287,854 |  |  | $ | - |  |  | $ | 1,249,938 |
Current-period gross write-offs |  | $ | - |  |  | $ | 40 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 14 |  |  | $ | - |  |  | $ | - |  |  | $ | 54 |
Other mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 162,418 |  |  | $ | 1,119,609 |  |  | $ | 1,106,055 |  |  | $ | 448,781 |  |  | $ | 249,059 |  |  | $ | 540,325 |  |  | $ | 100,516 |  |  | $ | 247 |  |  | $ | 3,727,010 |
Special Mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 850 |  |  |  | - |  |  |  | 850 |
Substandard - accruing |  |  | - |  |  |  | 4,975 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 11,005 |  |  |  | - |  |  |  | - |  |  |  | 15,980 |
Substandard -Non-accrual |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 130 |  |  |  | 376 |  |  |  | - |  |  |  | - |  |  |  | 506 |
Total Other mortgage |  | $ | 162,418 |  |  | $ | 1,124,584 |  |  | $ | 1,106,055 |  |  | $ | 448,781 |  |  | $ | 249,189 |  |  | $ | 551,706 |  |  | $ | 101,366 |  |  | $ | 247 |  |  | $ | 3,744,346 |
Current-period gross write-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 22,227 |  |  | $ | 3,890 |  |  | $ | 4,542 |  |  | $ | 1,794 |  |  | $ | 1,295 |  |  | $ | 2,687 |  |  | $ | 27,342 |  |  | $ | - |  |  | $ | 63,777 |
Special Mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard - accruing |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard -Non-accrual |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Consumer |  | $ | 22,227 |  |  | $ | 3,890 |  |  | $ | 4,542 |  |  | $ | 1,794 |  |  | $ | 1,295 |  |  | $ | 2,687 |  |  | $ | 27,342 |  |  | $ | - |  |  | $ | 63,777 |
Current-period gross write-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 4 |  |  | $ | 49 |  |  | $ | 1,020 |  |  | $ | - |  |  | $ | 1,073 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,058,567 |  |  | $ | 3,309,011 |  |  | $ | 2,493,493 |  |  | $ | 1,038,868 |  |  | $ | 577,813 |  |  | $ | 1,284,895 |  |  | $ | 1,711,574 |  |  | $ | 1,582 |  |  | $ | 11,475,803 |
Special Mention |  |  | 10,807 |  |  |  | 4,114 |  |  |  | 15,314 |  |  |  | 15,091 |  |  |  | 13,715 |  |  |  | 11,527 |  |  |  | 23,346 |  |  |  | 7 |  |  |  | 93,921 |
Substandard - accruing |  |  | 2,768 |  |  |  | 5,009 |  |  |  | 2,830 |  |  |  | 368 |  |  |  | 9,501 |  |  |  | 44,662 |  |  |  | 4,621 |  |  |  | - |  |  |  | 69,758 |
Substandard -Non-accrual |  |  | 155 |  |  |  | 382 |  |  |  | 1,508 |  |  |  | 778 |  |  |  | 3,336 |  |  |  | 9,372 |  |  |  | 3,705 |  |  |  | 111 |  |  |  | 19,347 |
Total Loans |  | $ | 1,072,297 |  |  | $ | 3,318,515 |  |  | $ | 2,513,145 |  |  | $ | 1,055,105 |  |  | $ | 604,365 |  |  | $ | 1,350,456 |  |  | $ | 1,743,246 |  |  | $ | 1,700 |  |  | $ | 11,658,829 |
Current-period gross write-offs |  | $ | 1,213 |  |  | $ | 4,730 |  |  | $ | 2,550 |  |  | $ | 779 |  |  | $ | 125 |  |  | $ | 2,077 |  |  | $ | 3,018 |  |  | $ | 89 |  |  | $ | 14,581 |
December 31, 2022 |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
|  | (In Thousands) |
Commercial, financial and agricultural |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 691,817 |  |  | $ | 502,648 |  |  | $ | 223,096 |  |  | $ | 144,587 |  |  | $ | 78,477 |  |  | $ | 134,893 |  |  | $ | 1,267,333 |  |  | $ | 3,042,851 |
Special Mention |  |  | 6,906 |  |  |  | 3,737 |  |  |  | 1,101 |  |  |  | 1,748 |  |  |  | 570 |  |  |  | 898 |  |  |  | 29,516 |  |  |  | 44,476 |
Substandard |  |  | 200 |  |  |  | - |  |  |  | 379 |  |  |  | 9,501 |  |  |  | 16,329 |  |  |  | 16,595 |  |  |  | 14,986 |  |  |  | 57,990 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Commercial, financial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
and agricultural |  | $ | 698,923 |  |  | $ | 506,385 |  |  | $ | 224,576 |  |  | $ | 155,836 |  |  | $ | 95,376 |  |  | $ | 152,386 |  |  | $ | 1,311,835 |  |  | $ | 3,145,317 |
Real estate - construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 618,578 |  |  | $ | 638,126 |  |  | $ | 156,834 |  |  | $ | 15,197 |  |  | $ | 12,063 |  |  | $ | 14,847 |  |  | $ | 72,172 |  |  | $ | 1,527,817 |
Special Mention |  |  | 2,500 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 873 |  |  |  | - |  |  |  | 3,373 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,198 |  |  |  | - |  |  |  | - |  |  |  | 1,198 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Real estate - construction |  | $ | 621,078 |  |  | $ | 638,126 |  |  | $ | 156,834 |  |  | $ | 15,197 |  |  | $ | 13,261 |  |  | $ | 15,720 |  |  | $ | 72,172 |  |  | $ | 1,532,388 |
Owner-occupied commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 424,321 |  |  | $ | 496,298 |  |  | $ | 352,375 |  |  | $ | 199,987 |  |  | $ | 157,204 |  |  | $ | 477,926 |  |  | $ | 64,152 |  |  | $ | 2,172,263 |
Special Mention |  |  | 2,362 |  |  |  | - |  |  |  | - |  |  |  | 2,723 |  |  |  | 4,682 |  |  |  | 6,917 |  |  |  | 1,687 |  |  |  | 18,371 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 73 |  |  |  | - |  |  |  | 8,573 |  |  |  | - |  |  |  | 8,646 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Owner-occupied commercial |  | $ | 426,683 |  |  | $ | 496,298 |  |  | $ | 352,375 |  |  | $ | 202,783 |  |  | $ | 161,886 |  |  | $ | 493,416 |  |  | $ | 65,839 |  |  | $ | 2,199,280 |
1-4 family mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 388,778 |  |  | $ | 273,515 |  |  | $ | 93,272 |  |  | $ | 52,209 |  |  | $ | 28,999 |  |  | $ | 57,512 |  |  | $ | 243,302 |  |  | $ | 1,137,587 |
Special Mention |  |  | 315 |  |  |  | 445 |  |  |  | 816 |  |  |  | 375 |  |  |  | 294 |  |  |  | 881 |  |  |  | 2,854 |  |  |  | 5,980 |
Substandard |  |  | - |  |  |  | 279 |  |  |  | 404 |  |  |  | 648 |  |  |  | 346 |  |  |  | 1,224 |  |  |  | 363 |  |  |  | 3,264 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total 1-4 family mortgage |  | $ | 389,093 |  |  | $ | 274,239 |  |  | $ | 94,492 |  |  | $ | 53,232 |  |  | $ | 29,639 |  |  | $ | 59,617 |  |  | $ | 246,519 |  |  | $ | 1,146,831 |
Other mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,027,747 |  |  | $ | 976,208 |  |  | $ | 517,392 |  |  | $ | 380,104 |  |  | $ | 130,228 |  |  | $ | 470,699 |  |  | $ | 75,669 |  |  | $ | 3,578,047 |
Special Mention |  |  | 231 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,161 |  |  |  | - |  |  |  | 7,392 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 130 |  |  |  | 4,569 |  |  |  | 7,612 |  |  |  | - |  |  |  | 12,311 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Other mortgage |  | $ | 1,027,978 |  |  | $ | 976,208 |  |  | $ | 517,392 |  |  | $ | 380,234 |  |  | $ | 134,797 |  |  | $ | 485,472 |  |  | $ | 75,669 |  |  | $ | 3,597,750 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 21,132 |  |  | $ | 5,845 |  |  | $ | 4,203 |  |  | $ | 1,759 |  |  | $ | 440 |  |  | $ | 2,988 |  |  | $ | 30,021 |  |  | $ | 66,388 |
Special Mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 14 |  |  |  | - |  |  |  | 14 |
Substandard |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Consumer |  | $ | 21,132 |  |  | $ | 5,845 |  |  | $ | 4,203 |  |  | $ | 1,759 |  |  | $ | 440 |  |  | $ | 3,002 |  |  | $ | 30,021 |  |  | $ | 66,402 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 3,172,373 |  |  | $ | 2,892,640 |  |  | $ | 1,347,172 |  |  | $ | 793,843 |  |  | $ | 407,411 |  |  | $ | 1,158,865 |  |  | $ | 1,752,649 |  |  | $ | 11,524,953 |
Special Mention |  |  | 12,314 |  |  |  | 4,182 |  |  |  | 1,917 |  |  |  | 4,846 |  |  |  | 5,546 |  |  |  | 16,744 |  |  |  | 34,057 |  |  |  | 79,606 |
Substandard |  |  | 200 |  |  |  | 279 |  |  |  | 783 |  |  |  | 10,352 |  |  |  | 22,442 |  |  |  | 34,004 |  |  |  | 15,349 |  |  |  | 83,409 |
Doubtful |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total Loans |  | $ | 3,184,887 |  |  | $ | 2,897,101 |  |  | $ | 1,349,872 |  |  | $ | 809,041 |  |  | $ | 435,399 |  |  | $ | 1,209,613 |  |  | $ | 1,802,055 |  |  | $ | 11,687,968 |
Nonperforming loans include nonaccrual loans and loans 90 or more days past due and still accruing. Loans by performance status as of December 31, 2023 and 2022 are as follows:
December 31, 2023 |  | Performing |  |  | Nonperforming |  |  | Total |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 2,816,599 |  |  | $ | 7,387 |  |  | $ | 2,823,986 |
Real estate - construction |  |  | 1,519,508 |  |  |  | 111 |  |  |  | 1,519,619 |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 2,250,074 |  |  |  | 7,089 |  |  |  | 2,257,163 |
1-4 family mortgage |  |  | 1,243,603 |  |  |  | 6,335 |  |  |  | 1,249,938 |
Other mortgage |  |  | 3,743,840 |  |  |  | 506 |  |  |  | 3,744,346 |
Total real estate - mortgage |  |  | 7,237,517 |  |  |  | 13,930 |  |  |  | 7,251,447 |
Consumer |  |  | 63,672 |  |  |  | 105 |  |  |  | 63,777 |
Total |  | $ | 11,637,296 |  |  | $ | 21,533 |  |  | $ | 11,658,829 |
December 31, 2022 |  | Performing |  |  | Nonperforming |  |  | Total |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 3,138,014 |  |  | $ | 7,303 |  |  | $ | 3,145,317 |
Real estate - construction |  |  | 1,532,388 |  |  |  | - |  |  |  | 1,532,388 |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 2,195,968 |  |  |  | 3,312 |  |  |  | 2,199,280 |
1-4 family mortgage |  |  | 1,144,713 |  |  |  | 2,118 |  |  |  | 1,146,831 |
Other mortgage |  |  | 3,592,732 |  |  |  | 5,018 |  |  |  | 3,597,750 |
Total real estate - mortgage |  |  | 6,933,413 |  |  |  | 10,448 |  |  |  | 6,943,861 |
Consumer |  |  | 66,312 |  |  |  | 90 |  |  |  | 66,402 |
Total |  | $ | 11,670,127 |  |  | $ | 17,841 |  |  | $ | 11,687,968 |
Loans by past due status as of December 31, 2023 and 2022 are as follows:
December 31, 2023 |  | Past Due Status (Accruing Loans) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Total Past |  |  | Total |  |  |  |  |  |  |  |  |  |  | Nonaccrual |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90+ Days |  |  | Due |  |  | Nonaccrual |  |  | Current |  |  | Total Loans |  |  | With No ACL |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 3,418 |  |  | $ | 3,718 |  |  | $ | 170 |  |  | $ | 7,306 |  |  | $ | 7,217 |  |  | $ | 2,809,463 |  |  | $ | 2,823,986 |  |  | $ | 5,028 |
Real estate - construction |  |  | - |  |  |  | 34 |  |  |  | - |  |  |  | 34 |  |  |  | 111 |  |  |  | 1,519,474 |  |  |  | 1,519,619 |  |  |  | - |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,089 |  |  |  | 2,250,074 |  |  |  | 2,257,163 |  |  |  | 7,089 |
1-4 family mortgage |  |  | 540 |  |  |  | 4,920 |  |  |  | 1,909 |  |  |  | 7,369 |  |  |  | 4,426 |  |  |  | 1,238,143 |  |  |  | 1,249,938 |  |  |  | 1,224 |
Other mortgage |  |  | 676 |  |  |  | 10,703 |  |  |  | - |  |  |  | 11,379 |  |  |  | 506 |  |  |  | 3,732,461 |  |  |  | 3,744,346 |  |  |  | 506 |
Total real estate - mortgage |  |  | 1,216 |  |  |  | 15,623 |  |  |  | 1,909 |  |  |  | 18,748 |  |  |  | 12,021 |  |  |  | 7,220,678 |  |  |  | 7,251,447 |  |  |  | 8,819 |
Consumer |  |  | 58 |  |  |  | 31 |  |  |  | 105 |  |  |  | 194 |  |  |  | - |  |  |  | 63,583 |  |  |  | 63,777 |  |  |  | - |
Total |  | $ | 4,692 |  |  | $ | 19,406 |  |  | $ | 2,184 |  |  | $ | 26,282 |  |  | $ | 19,349 |  |  | $ | 11,613,198 |  |  | $ | 11,658,829 |  |  | $ | 13,847 |
December 31, 2022 |  | Past Due Status (Accruing Loans) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Total Past |  |  | Total |  |  |  |  |  |  |  |  |  |  | Nonaccrual |
|  | 30-59 Days |  |  | 60-89 Days |  |  | 90+ Days |  |  | Due |  |  | Nonaccrual |  |  | Current |  |  | Total Loans |  |  | With No ACL |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 1,075 |  |  | $ | 409 |  |  | $ | 195 |  |  | $ | 1,679 |  |  | $ | 7,108 |  |  | $ | 3,136,530 |  |  |  | 3,145,317 |  |  | $ | 3,238 |
Real estate - construction |  |  | - |  |  |  | 711 |  |  |  | - |  |  |  | 711 |  |  |  | - |  |  |  | 1,531,677 |  |  |  | 1,532,388 |  |  |  | - |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 83 |  |  |  | 452 |  |  |  | - |  |  |  | 535 |  |  |  | 3,312 |  |  |  | 2,195,433 |  |  |  | 2,199,280 |  |  |  | 57 |
1-4 family mortgage |  |  | 405 |  |  |  | 580 |  |  |  | 594 |  |  |  | 1,579 |  |  |  | 1,524 |  |  |  | 1,143,728 |  |  |  | 1,146,831 |  |  |  | 491 |
Other mortgage |  |  | 231 |  |  |  | - |  |  |  | 4,512 |  |  |  | 4,743 |  |  |  | 506 |  |  |  | 3,592,501 |  |  |  | 3,597,750 |  |  |  | - |
Total real estate - mortgage |  |  | 719 |  |  |  | 1,032 |  |  |  | 5,106 |  |  |  | 6,857 |  |  |  | 5,342 |  |  |  | 6,931,662 |  |  |  | 6,943,861 |  |  |  | 548 |
Consumer |  |  | 174 |  |  |  | 128 |  |  |  | 90 |  |  |  | 392 |  |  |  | - |  |  |  | 66,010 |  |  |  | 66,402 |  |  |  | 621 |
Total |  | $ | 1,968 |  |  | $ | 2,280 |  |  | $ | 5,391 |  |  | $ | 9,639 |  |  | $ | 12,450 |  |  | $ | 11,665,879 |  |  |  | 11,687,968 |  |  | $ | 4,407 |
There was no interest earned on nonaccrual loans for the years ended December 31, 2023 and 2022. Loans that no longer share similar risk characteristics with the collectively evaluated pools are estimated on an individual basis. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows:
|  |  |  |  |  | Accounts |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ACL |
December 31, 2023 |  | Real Estate |  |  | Receivable |  |  | Equipment |  |  | Other |  |  | Total |  |  | Allocation |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 20,266 |  |  | $ | 7,240 |  |  | $ | 2,126 |  |  | $ | 24,016 |  |  | $ | 53,648 |  |  | $ | 16,189 |
Real estate - construction |  |  | 145 |  |  |  | - |  |  |  | - |  |  |  | 978 |  |  |  | 1,123 |  |  |  | 1 |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 12,038 |  |  |  | - |  |  |  | - |  |  |  | 698 |  |  |  | 12,736 |  |  |  | 475 |
1-4 family mortgage |  |  | 15,694 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 15,694 |  |  |  | 1,058 |
Other mortgage |  |  | 5,862 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,862 |  |  |  | 603 |
Total real estate - mortgage |  |  | 33,594 |  |  |  | - |  |  |  | - |  |  |  | 698 |  |  |  | 34,292 |  |  |  | 2,136 |
Total |  | $ | 54,005 |  |  | $ | 7,240 |  |  | $ | 2,126 |  |  | $ | 25,692 |  |  | $ | 89,063 |  |  | $ | 18,326 |
|  |  |  |  |  | Accounts |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ACL |
December 31, 2022 |  | Real Estate |  |  | Receivable |  |  | Equipment |  |  | Other |  |  | Total |  |  | Allocation |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 20,061 |  |  | $ | 12,092 |  |  | $ | 837 |  |  | $ | 24,998 |  |  | $ | 57,988 |  |  | $ | 9,910 |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,198 |  |  |  | 1,198 |  |  |  | 7 |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | 8,573 |  |  |  | - |  |  |  | - |  |  |  | 74 |  |  |  | 8,647 |  |  |  | 154 |
1-4 family mortgage |  |  | 3,260 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,260 |  |  |  | 316 |
Other mortgage |  |  | 12,311 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,311 |  |  |  | - |
Total real estate - mortgage |  |  | 24,144 |  |  |  | - |  |  |  | - |  |  |  | 74 |  |  |  | 24,218 |  |  |  | 470 |
Total |  | $ | 44,205 |  |  | $ | 12,092 |  |  | $ | 837 |  |  | $ | 26,270 |  |  | $ | 83,404 |  |  | $ | 10,387 |
On March 22, 2020, an Interagency Statement was issued by banking regulators that encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provided that a qualified loan modification is exempt by law from classification as a Troubled Debt Restructuring (“TDR”) as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak declared by the President of the United States under the National Emergencies Act terminated. The Interagency Statement was subsequently revised in April 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act 2021, which extended the period established by Section 4013 of the CARES Act to the earlier of January 1, 2022 or the date that is 60 days after the date on which the national COVID-19 emergency terminated. In accordance with such guidance, the Bank offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term (180 days or less) modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The Bank adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of TDRs and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The table below details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023:
|  | Year Ended December 31, 2023 |
|  |  |  |  |  | Payment Deferral |  |  |  |  |  |  |  |  |
|  | Term |  |  | and Term |  |  |  |  |  |  | Percentage of |
|  | Extensions |  |  | Extensions |  |  | Total |  |  | Total Loans |
|  | (In Thousands) |
Commercial, financial and agricultural |  | $ | 28,363 |  |  | $ | - |  |  | $ | 28,363 |  |  |  | 0.24 | %
Owner-occupied commercial |  |  | 3,021 |  |  |  | - |  |  |  | 3,021 |  |  |  | 0.03 | %
Other mortgage |  |  | 10,932 |  |  |  | 303 |  |  |  | 11,234 |  |  |  | 0.10 | %
Total |  | $ | 42,315 |  |  | $ | 303 |  |  | $ | 42,618 |  |  |  | 0.37 | %
The following table summarizes the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023:
|  | Twelve Months Ended December 31, 2023 |
|  |  |  |  |  | Total Payment |
|  | Term Extensions |  |  | Deferral |
|  | (In months) |  |  | (In Thousands) |
Commercial, financial and agricultural |  |  | 1 to 65 |  |  |  | - |
Owner-occupied commercial |  |  | 3 to 60 |  |  |  | 49 |
Other mortgage |  |  | 3 to 36 |  |  |  | 59 |
TDRs at December 31, 2022 totaled $2.5 million. The following tables present loans modified in a TDR during the period presented by portfolio segment and the financial impact of those modifications. The table includes modifications made to new TDRs, as well as renewals of existing TDRs.
|  | Year Ended December 31, 2022 |
|  |  |  |  |  | Pre- |  |  | Post- |
|  |  |  |  |  | Modification |  |  | Modification |
|  |  |  |  |  | Outstanding |  |  | Outstanding |
|  | Number of |  |  | Recorded |  |  | Recorded |
|  | Contracts |  |  | Investment |  |  | Investment |
|  | (In Thousands) |
Troubled Debt Restructurings |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  |  | 3 |  |  | $ | 444 |  |  | $ | 444 |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |
Real estate - mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied commercial |  |  | - |  |  |  | - |  |  |  | - |
1-4 family mortgage |  |  | - |  |  |  | - |  |  |  | - |
Other mortgage |  |  | - |  |  |  | - |  |  |  | - |
Total real estate - mortgage |  |  | - |  |  |  | - |  |  |  | - |
Consumer |  |  | - |  |  |  | - |  |  |  | - |
|  |  | 3 |  |  | $ | 444 |  |  | $ | 444 |
There were no loans that were modified in the previous twelve months (i.e., the twelve months prior to default) that defaulted during the years ended December 31, 2023. For purposes of this disclosure, default is defined as 90 days past due and still accruing or placement on nonaccrual status. In the ordinary course of business, the Company has granted loans to certain related parties, including directors, and their affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction and repayment terms are customary for the type of loan. Changes in related party loans for the years ended December 31, 2023 and 2022 are as follows:
|  | Years Ended December 31, |
|  | 2023 |  |  | 2022 |
|  | (In Thousands) |
Balance, beginning of year |  | $ | 52,608 |  |  | $ | 51,180 |
Advances |  |  | 67,106 |  |  |  | 103,513 |
Repayments |  |  | (79,883 | ) |  |  | (102,085 | )
Balance, end of year |  | $ | 39,831 |  |  | $ | 52,608 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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