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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Major Categories of Total Loans Outstanding
The following is a summary of the major categories of total loans outstanding:
($ in thousands)September 30, 2022December 31, 2021
 AmountPercentageAmountPercentage
All  loans:
Commercial, financial, and agricultural$617,538 9 %$648,997 11 %
Real estate – construction, land development & other land loans919,236 14 %828,549 13 %
Real estate – mortgage – residential (1-4 family) first mortgages1,132,552 17 %1,021,966 17 %
Real estate – mortgage – home equity loans / lines of credit323,218 5 %331,932 5 %
Real estate – mortgage – commercial and other3,473,225 53 %3,194,737 53 %
Consumer loans60,651 1 %57,238 1 %
Subtotal6,526,420 100 %6,083,419 100 %
Unamortized net deferred loan fees(1,134)(1,704)
Total loans$6,525,286 $6,081,715 
Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.
($ in thousands)September 30, 2022December 31, 2021
Guaranteed portions of non-PPP SBA loans included in table above$36,625 48,377 
Unguaranteed portions of non-PPP SBA loans included in table above119,590 122,772 
Total non-PPP SBA loans included in the table above$156,215 171,149 
Sold portions of SBA loans with servicing retained - not included in tables above$396,108 414,240 
Schedule of Nonperforming Assets and Nonaccrual Loans
Nonperforming assets are defined as nonaccrual loans, troubled debt restructured loans ("TDRs"), loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
($ in thousands)September 30,
2022		December 31,
2021
Nonaccrual loans$28,669 34,696 
TDRs - accruing11,355 13,866 
Accruing loans > 90 days past due— 1,004 
Total nonperforming loans40,024 49,566 
Foreclosed real estate658 3,071 
Total nonperforming assets$40,682 52,637 
The following table is a summary of the Company’s nonaccrual loans by major categories as of September 30, 2022.
($ in thousands)Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial, financial, and agricultural$3,912 7,446 11,358 
Real estate – construction, land development & other land loans877 120 997 
Real estate – mortgage – residential (1-4 family) first mortgages157 3,203 3,360 
Real estate – mortgage – home equity loans / lines of credit— 1,340 1,340 
Real estate – mortgage – commercial and other5,517 5,992 11,509 
Consumer loans— 105 105 
Total$10,463 18,206 28,669 


The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2021.
($ in thousands)Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial, financial, and agricultural$3,947 8,205 12,152 
Real estate – construction, land development & other land loans495 137 632 
Real estate – mortgage – residential (1-4 family) first mortgages858 4,040 4,898 
Real estate – mortgage – home equity loans / lines of credit— 694 694 
Real estate – mortgage – commercial and other7,648 8,583 16,231 
Consumer loans— 89 89 
Total$12,948 21,748 34,696 
Summary of Accrued Interest Receivables Written Off
The following table represents the accrued interest receivables written off by reversing interest income during each period indicated.
($ in thousands)Nine Months Ended September 30, 2022For the Year Ended December 31, 2021Nine Months Ended September 30, 2021
Commercial, financial, and agricultural$56 195 160 
Real estate – construction, land development & other land loans16 6 — 
Real estate – mortgage – residential (1-4 family) first mortgages32 31 20 
Real estate – mortgage – home equity loans / lines of credit17 14 11 
Real estate – mortgage – commercial and other108 453 446 
Consumer loans2 — — 
Total$231 699 637 
Schedule of Analysis of Payment Status
The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2022.
($ in thousands)Accruing
30-59
Days Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$825 158 — 11,358 605,197 617,538 
Real estate – construction, land development & other land loans3,434 — — 997 914,805 919,236 
Real estate – mortgage – residential (1-4 family) first mortgages2,008 1,053 — 3,360 1,126,131 1,132,552 
Real estate – mortgage – home equity loans / lines of credit126 244 — 1,340 321,508 323,218 
Real estate – mortgage – commercial and other1,077 532 — 11,509 3,460,107 3,473,225 
Consumer loans229 74 — 105 60,243 60,651 
Total$7,699 2,061 — 28,669 6,487,991 6,526,420 
Unamortized net deferred loan fees(1,134)
Total loans6,525,286 
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2021.
($ in thousands)Accruing
30-59
Days
Past
Due		Accruing
60-89
Days
Past
Due		Accruing
90 Days
or More
Past
Due		Nonaccrual
Loans		Accruing
Current		Total Loans
Receivable
Commercial, financial, and agricultural$377 93 — 12,152 636,375 648,997 
Real estate – construction, land development & other land loans4,046 — 286 632 823,585 828,549 
Real estate – mortgage – residential (1-4 family) first mortgages6,571 1,488 — 4,898 1,009,009 1,021,966 
Real estate – mortgage – home equity loans / lines of credit489 124 718 694 329,907 331,932 
Real estate – mortgage – commercial and other164 1,496 — 16,231 3,176,846 3,194,737 
Consumer loans116 62 — 89 56,971 57,238 
Total$11,763 3,263 1,004 34,696 6,032,693 6,083,419 
Unamortized net deferred loan fees(1,704)
Total loans$6,081,715 
Analysis of Collateral-Dependent Loans
The following table presents an analysis of collateral dependent loans of the Company as of September 30, 2022.
($ in thousands)Residential PropertyBusiness AssetsLandCommercial PropertyTotal Collateral-Dependent Loans
Commercial, financial, and agricultural$— 6,575 — — 6,575 
Real estate – construction, land development & other land loans— — 877 — 877 
Real estate – mortgage – residential (1-4 family) first mortgages157 — — — 157 
Real estate – mortgage – commercial and other— — — 7,257 7,257 
Total$157 6,575 877 7,257 14,866 

The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2021.
($ in thousands)Residential PropertyBusiness AssetsLandCommercial PropertyTotal Collateral-Dependent Loans
Commercial, financial, and agricultural$— 7,886 — — 7,886 
Real estate – construction, land development & other land loans— — 533 — 533 
Real estate – mortgage – residential (1-4 family) first mortgages871 — — — 871 
Real estate – mortgage – commercial and other— — — 10,743 10,743 
Total$871 7,886 533 10,743 20,033 
Schedule of Allowance for Loan Losses
The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2021, adjustments for acquired loan portfolios. With regard to the increase in ACL for three and nine months ended September 30, 2022, approximately half of the increase was due to organic growth in the loan portfolio. The balance of the increase was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to higher unemployment forecasts and deteriorating Commercial Real Estate Index forecasts given the developing uncertain economic environment.

($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended September 30, 2022
Beginning balance$15,450 16,171 8,650 2,086 37,194 2,630 — 82,181 
Charge-offs(512)— — (2)(470)(221)— (1,205)
Recoveries166 109 1 85 112 38 — 511 
Provisions / (Reversals)2,482 (1,352)2,064 597 938 371 — 5,100 
Ending balance$17,586 14,928 10,715 2,766 37,774 2,818 — 86,587 
As of and for the nine months ended September 30, 2022
Beginning balance$16,249 16,519 8,686 4,337 30,342 2,656 — 78,789 
Charge-offs(2,030)— — (43)(1,333)(602)— (4,008)
Recoveries636 376 16 446 1,567 165 — 3,206 
Provisions / (Reversals)2,731 (1,967)2,013 (1,974)7,198 599 — 8,600 
Ending balance$17,586 14,928 10,715 2,766 37,774 2,818 — 86,587 
($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the year ended December 31, 2021
Beginning balance$11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 
Adjustment for implementation of CECL3,067 6,140 2,584 2,580 (257)674 (213)14,575 
Allowance for acquired PCD loans2,917 165 222 92 1,489 10 — 4,895 
Charge-offs(3,722)(245)(273)(400)(2,295)(667)— (7,602)
Recoveries1,744 948 761 578 533 358 — 4,922 
Provisions/(Reversals)927 4,156 (2,656)(888)7,269 803 — 9,611 
Ending balance$16,249 16,519 8,686 4,337 30,342 2,656 — 78,789 

($ in thousands)Commercial,
Financial,
and
Agricultural		Real Estate
–
Construction,
Land
Development
& Other Land
Loans		Real Estate
–
Residential
(1-4 Family)
First
Mortgages		Real Estate
– Mortgage
– Home
Equity
Lines of
Credit		Real Estate
– Mortgage
–
Commercial
and Other		Consumer LoansUnallocatedTotal
As of and for the three months ended September 30, 2021
Beginning balance$14,809 10,104 8,651 3,737 25,358 2,363 — 65,022 
Charge-offs(899)— (24)— (4)(178)— (1,105)
Recoveries398 98 176 311 79 49 — 1,111 
Provisions/(Reversals)(808)2,187 (1,032)(546)(1,336)135 — (1,400)
Ending balance$13,500 12,389 7,771 3,502 24,097 2,369 — 63,628 
As of and for the nine months ended September 30, 2021
Beginning balance$11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 
Adjustment for implementation of CECL3,067 6,140 2,584 2,580 (257)674 (213)14,575 
Charge-offs(2,887)(66)(138)(139)(1,838)(485)— (5,553)
Recoveries1,065 784 499 540 419 311 — 3,618 
Provisions/(Reversals)939 176 (3,222)(1,854)2,170 391 — (1,400)
Ending balance$13,500 12,389 7,771 3,502 24,097 2,369 — 63,628 
The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the nine months ended September 30, 2022.
($ in thousands)Total Allowance for Credit Losses - Unfunded Loan Commitments
Beginning balance at December 31, 2021$13,506 
Charge-offs— 
Recoveries— 
Reversal of provision for unfunded commitments(1,200)
Ending balance at September 30, 2022
$12,306 
Schedule of Recorded Investment in Loans by Credit Quality Indicators
The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
Risk GradeDescription
Pass:
1Loans with virtually no risk, including cash secured loans.
2Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
3Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
4Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.  
5Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
P
(Pass)		Consumer loans that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.  
Special Mention:
6Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
7An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
8Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
9Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
F
(Fail)		Consumer loans with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.

In the tables that follow, substantially all of the "Classified Loans" have grades of 7 or Fail, with those categories having similar levels of risk.

The tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition. For three month and nine month periods ended September 30, 2022, the amount of revolving lines of credit that converted to term loans totaled $2.4 million and $4.6 million, respectively. Converted lines of credit were immaterial in the comparable prior year periods.
Term Loans by Year of Origination
($ in thousands)20222021202020192018PriorRevolvingTotal
As of September 30, 2022
Commercial, financial, and agricultural
Pass$126,775 136,151 89,302 56,471 59,693 22,133 110,825 601,350 
Special Mention30 175 677 1,472 906 244 85 3,589 
Classified440 2,193 902 1,251 6,864 368 581 12,599 
Total commercial, financial, and agricultural127,245 138,519 90,881 59,194 67,463 22,745 111,491 617,538 
Real estate – construction, land development & other land loans
Pass438,062 357,411 54,529 32,455 5,461 8,146 13,579 909,643 
Special Mention3,444 9 4 4,061 103 — — 7,621 
Classified592 112 35 908 66 16 243 1,972 
Total real estate – construction, land development & other land loans442,098 357,532 54,568 37,424 5,630 8,162 13,822 919,236 
Real estate – mortgage – residential (1-4 family) first mortgages
Pass197,181 300,207 192,410 101,787 66,548 250,772 7,298 1,116,203 
Special Mention852 350 274 304 106 2,382 100 4,368 
Classified403 811 225 585 971 8,084 902 11,981 
Total real estate – mortgage – residential (1-4 family) first mortgages198,436 301,368 192,909 102,676 67,625 261,238 8,300 1,132,552 
Real estate – mortgage – home equity loans / lines of credit
Pass1,042 2,046 365 256 869 1,902 308,219 314,699 
Special Mention— 179 — — — 18 977 1,174 
Classified39 158 95 82 — 290 6,681 7,345 
Total real estate – mortgage – home equity loans / lines of credit1,081 2,383 460 338 869 2,210 315,877 323,218 
Real estate – mortgage – commercial and other
Pass934,199 1,215,815 596,502 278,815 152,596 206,579 55,726 3,440,232 
Special Mention954 1,153 4,305 4,750 1,918 2,596 670 16,346 
Classified3,168 1,479 115 2,772 6,876 1,746 491 16,647 
Total real estate – mortgage – commercial and other938,321 1,218,447 600,922 286,337 161,390 210,921 56,887 3,473,225 
Consumer loans
Pass14,507 27,261 4,271 1,339 1,040 490 11,565 60,473 
Special Mention— — — — — — — — 
Classified6 99 5 1 — 12 55 178 
Total consumer loans14,513 27,360 4,276 1,340 1,040 502 11,620 60,651 
Total$1,721,694 2,045,609 944,016 487,309 304,017 505,778 517,997 6,526,420 
Unamortized net deferred loan fees(1,134)
Total loans6,525,286 
Term Loans by Year of Origination
($ in thousands)20212020201920182017PriorRevolvingTotal
As of December 31, 2021
Commercial, financial, and agricultural
Pass$204,945 138,540 71,369 66,645 16,009 17,492 112,933 627,933 
Special Mention225 1,255 1,313 2,729 225 9 2,348 8,104 
Classified1,609 793 1,703 7,096 511 96 1,152 12,960 
Total commercial, financial, and agricultural206,779 140,588 74,385 76,470 16,745 17,597 116,433 648,997 
Real estate – construction, land development & other land loans
Pass573,613 133,888 69,066 12,455 9,764 8,190 13,737 820,713 
Special Mention41 737 5,095 110 104 2 9 6,098 
Classified1,541 49 47 83 14 4 — 1,738 
Total real estate – construction, land development & other land loans575,195 134,674 74,208 12,648 9,882 8,196 13,746 828,549 
Real estate – mortgage – residential (1-4 family) first mortgages
Pass241,619 224,617 120,097 82,531 86,074 234,950 11,051 1,000,939 
Special Mention888 615 516 229 323 3,237 94 5,902 
Classified419 156 535 1,185 653 11,246 931 15,125 
Total real estate – mortgage – residential (1-4 family) first mortgages242,926 225,388 121,148 83,945 87,050 249,433 12,076 1,021,966 
Real estate – mortgage – home equity loans / lines of credit
Pass3,111 498 439 1,304 245 1,649 317,319 324,565 
Special Mention194 — 15 — — 19 1,341 1,569 
Classified75 97 71 — — 607 4,948 5,798 
Total real estate – mortgage – home equity loans / lines of credit3,380 595 525 1,304 245 2,275 323,608 331,932 
Real estate – mortgage – commercial and other
Pass1,328,156 796,992 355,885 211,118 197,165 197,659 66,104 3,153,079 
Special Mention1,759 4,849 5,801 3,741 2,072 1,801 1,440 21,463 
Classified7,147 413 2,110 6,025 3,897 603 — 20,195 
Total real estate – mortgage – commercial and other1,337,062 802,254 363,796 220,884 203,134 200,063 67,544 3,194,737 
Consumer loans
Pass14,960 25,431 2,965 1,722 673 525 10,810 57,086 
Special Mention— 4 — — — — — 4 
Classified— 73 — 8 — 25 42 148 
Total consumer loans14,960 25,508 2,965 1,730 673 550 10,852 57,238 
Total$2,380,302 1,329,007 637,027 396,981 317,729 478,114 544,259 6,083,419 
Unamortized net deferred loan fees(1,704)
Total loans6,081,715 
Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring
The following table presents information related to loans modified in a TDR during the three months ended September 30, 2022 and 2021.
($ in thousands)For the three months ended September 30, 2022For the three months ended September 30, 2021
Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances		Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances
TDRs – Accruing
Real estate – mortgage – home equity loans / lines of credit1 176 176 — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural1 327 327 — — — 
Total TDRs arising during period2 $503 $503 — $— $— 
The following table presents information related to loans modified in a TDR during the nine months ended September 30, 2022 and 2021.
($ in thousands)
For the nine months ended September 30, 2022
For the nine months ended September 30, 2021
Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances		Number of
Contracts		Pre-
Modification
Restructured
Balances		Post-
Modification
Restructured
Balances
TDRs – Accruing
Commercial, financial, and agricultural1 $161 $161 — $— $— 
Real estate – construction, land development & other land loans1 131 131 — — — 
Real estate – mortgage – residential (1-4 family) first mortgages1 36 36 1 33 33 
Real estate – mortgage – home equity loans / lines of credit3 379 379 — — — 
Real estate – mortgage – commercial and other— — — 1 160 160 
Consumer loans— — — — — — 
TDRs – Nonaccrual
Commercial, financial, and agricultural4 627 627 3 826 823 
Real estate – construction, land development & other land loans— — — 1 75 75 
Real estate – mortgage – residential (1-4 family) first mortgages1 36 36 1 263 263 
Real estate – mortgage – home equity loans / lines of credit— — — — — — 
Real estate – mortgage – commercial and other2 784 784 3 1,569 1,569 
Consumer loans— — — — — — 
Total TDRs arising during period13 2,154 2,154 10 2,926 2,923