Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories (Dollars in thousands) At March 31, 2021 At December 31, 2020 Commercial, financial and agricultural $ 871,996 $ 892,665 Paycheck Protection Program 528,452 483,773 Real estate-commercial 2,531,700 2,458,872 Real estate-construction 249,652 243,355 Real estate-residential secured for business purpose 387,801 381,446 Real estate-residential secured for personal purpose 494,349 487,600 Real estate-home equity secured for personal purpose 162,529 166,609 Loans to individuals 25,468 27,482 Lease financings 163,059 165,039 Total loans and leases held for investment, net of deferred income $ 5,415,006 $ 5,306,841 Less: Allowance for credit losses, loans and leases (71,497) (83,044) Net loans and leases held for investment $ 5,343,509 $ 5,223,797 Imputed interest on lease financings, included in the above table $ (17,283) $ (17,670) Net deferred fees, included in the above table (4,967) (2,903) Overdraft deposits included in the above table 4,705 948 Age Analysis of Past Due Loans and Leases The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at March 31, 2021 and December 31, 2020: Accruing Loans and Leases (Dollars in thousands) 30-59 60-89 90 Days Total Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans At March 31, 2021 Commercial, financial and agricultural $ 1,195 $ — $ 40 $ 1,235 $ 868,755 $ 869,990 $ 2,006 $ 871,996 Paycheck Protection Program — — — — 528,452 528,452 — 528,452 Real estate—commercial real estate and construction: Commercial real estate 3,893 88 — 3,981 2,505,693 2,509,674 22,026 2,531,700 Construction 1,164 — — 1,164 248,488 249,652 — 249,652 Real estate—residential and home equity: Residential secured for business purpose 2,364 660 — 3,024 381,918 384,942 2,859 387,801 Residential secured for personal purpose 1,014 — 403 1,417 491,065 492,482 1,867 494,349 Home equity secured for personal purpose 682 132 — 814 160,626 161,440 1,089 162,529 Loans to individuals 73 33 123 229 25,239 25,468 — 25,468 Lease financings 290 324 98 712 162,198 162,910 149 163,059 Total $ 10,675 $ 1,237 $ 664 $ 12,576 $ 5,372,434 $ 5,385,010 $ 29,996 $ 5,415,006 Accruing Loans and Leases (Dollars in thousands) 30-59 60-89 90 Days Total Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans At December 31, 2020 Commercial, financial and agricultural $ 1,104 $ 279 $ 50 $ 1,433 $ 888,405 $ 889,838 $ 2,827 $ 892,665 Paycheck Protection Program — — — — 483,773 483,773 — 483,773 Real estate—commercial real estate and construction: Commercial real estate 3,230 859 945 5,034 2,431,099 2,436,133 22,739 2,458,872 Construction 361 — — 361 242,994 243,355 — 243,355 Real estate—residential and home equity: Residential secured for business purpose 3,726 603 — 4,329 374,331 378,660 2,786 381,446 Residential secured for personal purpose 6,057 80 — 6,137 479,377 485,514 2,086 487,600 Home equity secured for personal purpose 607 32 — 639 164,923 165,562 1,047 166,609 Loans to individuals 190 74 185 449 27,033 27,482 — 27,482 Lease financings 898 291 212 1,401 163,431 164,832 207 165,039 Total $ 16,173 $ 2,218 $ 1,392 $ 19,783 $ 5,255,366 $ 5,275,149 $ 31,692 $ 5,306,841 Nonperforming Loans and Leases The following presents, by class of loans and leases, nonperforming loans and leases at March 31, 2021 and December 31, 2020. At March 31, 2021 At December 31, 2020 (Dollars in thousands) Nonaccrual Accruing Loans and Total Nonperforming Nonaccrual Accruing Loans and Total Nonperforming Commercial, financial and agricultural $ 2,006 $ — $ 40 $ 2,046 $ 2,827 $ — $ 50 $ 2,877 Real estate—commercial real estate and construction: Commercial real estate 22,026 — — 22,026 22,739 — 945 23,684 Real estate—residential and home equity: Residential secured for business purpose 2,859 — — 2,859 2,786 — — 2,786 Residential secured for personal purpose 1,867 — 403 2,270 2,086 — — 2,086 Home equity secured for personal purpose 1,089 52 — 1,141 1,047 53 — 1,100 Loans to individuals — — 123 123 — — 185 185 Lease financings 149 — 98 247 207 — 212 419 Total $ 29,996 $ 52 $ 664 $ 30,712 $ 31,692 $ 53 $ 1,392 $ 33,137 * Includes nonaccrual troubled debt restructured loans of $13.5 million and $14.1 million at March 31, 2021 and December 31, 2020, respectively. The following table presents the amortized cost basis of loans and leases on nonaccrual status and loans and leases 90 days or more past due and still accruing as of March 31, 2021 and December 31, 2020. (Dollars in thousands) Nonaccrual With No ACL Nonaccrual With ACL Total Nonaccrual Loans 90 Days or more Past Due and Accruing Interest At March 31, 2021 Commercial, financial and agricultural $ 1,647 $ 359 $ 2,006 $ 40 Real estate-commercial 22,026 — 22,026 — Real estate-residential secured for business purpose 2,832 27 2,859 — Real estate-residential secured for personal purpose 1,740 127 1,867 403 Real estate-home equity secured for personal purpose 1,089 — 1,089 — Loans to individuals — — — 123 Lease financings — 149 149 98 Total $ 29,334 $ 662 $ 29,996 $ 664 At December 31, 2020 Commercial, financial and agricultural $ 2,187 $ 640 $ 2,827 $ 50 Real estate-commercial 22,739 — 22,739 945 Real estate-residential secured for business purpose 2,663 123 2,786 — Real estate-residential secured for personal purpose 1,958 128 2,086 — Real estate-home equity secured for personal purpose 1,047 — 1,047 — Loans to individuals — — — 185 Lease financings — 207 207 212 Total $ 30,594 $ 1,098 $ 31,692 $ 1,392 The following table presents the amortized cost basis of collateral-dependent nonaccrual loans by class of loans and type of collateral as of March 31, 2021 and December 31, 2020. (Dollars in thousands) Real Estate Other (1) None (2) Total At March 31, 2021 Commercial, financial and agricultural $ 874 $ 1,132 $ — $ 2,006 Real estate-commercial 22,026 — — 22,026 Real estate-residential secured for business purpose 2,859 — — 2,859 Real estate-residential secured for personal purpose 1,867 — — 1,867 Real estate-home equity secured for personal purpose 1,089 — — 1,089 Total $ 28,715 $ 1,132 $ — $ 29,847 At December 31, 2020 Commercial, financial and agricultural $ 1,351 $ 1,194 $ 282 $ 2,827 Real estate-commercial 22,739 — — 22,739 Real estate-residential secured for business purpose 2,786 — — 2,786 Real estate-residential secured for personal purpose 2,086 — — 2,086 Real estate-home equity secured for personal purpose 1,047 — — 1,047 Total $ 30,009 $ 1,194 $ 282 $ 31,485 (1) Collateral consists of business assets, including accounts receivable and personal property. (2) Loans fully reserved given lack of collateral. Credit Quality Indicators The Corporation categorizes risk based on relevant information about the ability of the borrower to service their debt. Loans with a relationship balance of less than $1 million are reviewed when necessary based on their performance, primarily when such loans are delinquent. Loans with relationships greater than $1 million are reviewed at least annually. Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2020. The following is a description of the internal risk ratings and the likelihood of loss related to the credit quality of Commercial, financial and agricultural loans, Paycheck Protection Program loans, Real-estate commercial loans, Real-estate construction loans and Real-estate residential secured for a business purpose loans. 1. Pass—Loans considered satisfactory with no indications of deterioration 2. Special Mention—Potential weakness that deserves management's close attention 3. Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt 4. Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for Commercial, financial and agricultural loans, Paycheck Protection Program loans, Real-estate commercial loans, Real-estate construction loans and Real-estate residential secured for a business purpose loans by credit quality indicator at March 31, 2021 and December 31, 2020. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total At March 31, 2021 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 69,723 $ 146,523 $ 90,985 $ 71,413 $ 34,561 $ 64,820 $ 374,556 $ 852,581 2. Special Mention — 2,680 783 299 408 1,766 6,280 12,216 3. Substandard — — 36 145 17 714 6,287 7,199 Total $ 69,723 $ 149,203 $ 91,804 $ 71,857 $ 34,986 $ 67,300 $ 387,123 $ 871,996 Paycheck Protection Program Risk Rating 1. Pass $ 161,718 $ 366,734 $ — $ — $ — $ — $ — $ 528,452 2. Special Mention — — — — — — — — 3. Substandard — — — — — — — — Total $ 161,718 $ 366,734 $ — $ — $ — $ — $ — $ 528,452 Real Estate-Commercial Risk Rating 1. Pass $ 207,223 $ 1,011,644 $ 466,297 $ 202,198 $ 255,578 $ 262,380 $ 40,041 $ 2,445,361 2. Special Mention — 6,173 26,482 3,472 — 6,992 1,248 44,367 3. Substandard — 12,274 4,597 6,647 11,154 6,964 336 41,972 Total $ 207,223 $ 1,030,091 $ 497,376 $ 212,317 $ 266,732 $ 276,336 $ 41,625 $ 2,531,700 Real Estate-Construction Risk Rating 1. Pass $ 28,695 $ 100,814 $ 56,044 $ 34,940 $ 124 $ 2,949 $ 4,821 $ 228,387 2. Special Mention — 21,265 — — — — — 21,265 3. Substandard — — — — — — — — Total $ 28,695 $ 122,079 $ 56,044 $ 34,940 $ 124 $ 2,949 $ 4,821 $ 249,652 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 55,096 $ 105,094 $ 61,128 $ 45,109 $ 39,084 $ 51,891 $ 24,543 $ 381,945 2. Special Mention — 1,343 — 187 75 304 — 1,909 3. Substandard — 27 985 50 46 2,008 831 3,947 Total $ 55,096 $ 106,464 $ 62,113 $ 45,346 $ 39,205 $ 54,203 $ 25,374 $ 387,801 Totals By Risk Rating 1. Pass $ 522,455 $ 1,730,809 $ 674,454 $ 353,660 $ 329,347 $ 382,040 $ 443,961 $ 4,436,726 2. Special Mention — 31,461 27,265 3,958 483 9,062 7,528 79,757 3. Substandard — 12,301 5,618 6,842 11,217 9,686 7,454 53,118 Total $ 522,455 $ 1,774,571 $ 707,337 $ 364,460 $ 341,047 $ 400,788 $ 458,943 $ 4,569,601 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total At December 31, 2020 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 162,547 $ 93,967 $ 74,722 $ 38,906 $ 17,371 $ 56,053 $ 427,336 $ 870,902 2. Special Mention 2,723 783 316 500 777 1,144 8,318 14,561 3. Substandard — 430 362 28 — 627 5,755 7,202 Total $ 165,270 $ 95,180 $ 75,400 $ 39,434 $ 18,148 $ 57,824 $ 441,409 $ 892,665 Paycheck Protection Program Risk Rating 1. Pass $ 483,773 $ — $ — $ — $ — $ — $ — $ 483,773 2. Special Mention — — — — — — — — 3. Substandard — — — — — — — — Total $ 483,773 $ — $ — $ — $ — $ — $ — $ 483,773 Real Estate-Commercial Risk Rating 1. Pass $ 1,084,157 $ 481,997 $ 223,646 $ 268,236 $ 143,041 $ 157,503 $ 43,008 $ 2,401,588 2. Special Mention 6,220 10,076 3,498 — 1,250 5,870 1,247 28,161 3. Substandard 3,803 3,998 709 11,383 1,207 6,690 1,333 29,123 Total $ 1,094,180 $ 496,071 $ 227,853 $ 279,619 $ 145,498 $ 170,063 $ 45,588 $ 2,458,872 Real Estate-Construction Risk Rating 1. Pass $ 116,840 $ 59,507 $ 39,009 $ 113 $ 2,950 $ — $ 3,711 $ 222,130 2. Special Mention 21,225 — — — — — — 21,225 3. Substandard — — — — — — — — Total $ 138,065 $ 59,507 $ 39,009 $ 113 $ 2,950 $ — $ 3,711 $ 243,355 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 118,925 $ 72,149 $ 52,775 $ 43,347 $ 37,768 $ 25,170 $ 25,510 $ 375,644 2. Special Mention 1,354 — 188 77 175 130 — 1,924 3. Substandard 28 991 50 64 1,065 962 718 3,878 Total $ 120,307 $ 73,140 $ 53,013 $ 43,488 $ 39,008 $ 26,262 $ 26,228 $ 381,446 Totals By Risk Rating 1. Pass $ 1,966,242 $ 707,620 $ 390,152 $ 350,602 $ 201,130 $ 238,726 $ 499,565 $ 4,354,037 2. Special Mention 31,522 10,859 4,002 577 2,202 7,144 9,565 65,871 3. Substandard 3,831 5,419 1,121 11,475 2,272 8,279 7,806 40,203 Total $ 2,001,595 $ 723,898 $ 395,275 $ 362,654 $ 205,604 $ 254,149 $ 516,936 $ 4,460,111 The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2021 and December 31, 2020. The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2021 and December 31, 2020. The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: Real-estate residential secured for personal purpose loans, Real-estate home equity secured for personal purpose loans, Loans to individuals and Lease financings. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2020. Loans and leases past due 90 days or more, loans and leases on nonaccrual status and troubled debt restructured loans and lease modifications are considered nonperforming. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Based on the most recent analysis performed, the following table presents for the recorded investment in loans and leases held for investment for Real-estate residential secured for personal purpose loans, Real-estate home equity secured for personal purpose loans, Loans to individuals and Lease financings by credit quality indicator at March 31, 2021 and December 31, 2020. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total At March 31, 2021 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 65,849 $ 186,428 $ 51,724 $ 37,244 $ 37,472 $ 112,249 $ 1,113 $ 492,079 2. Nonperforming — 1,065 — 55 — 1,150 — 2,270 Total $ 65,849 $ 187,493 $ 51,724 $ 37,299 $ 37,472 $ 113,399 $ 1,113 $ 494,349 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 311 $ 1,061 $ 601 $ 724 $ 1,105 $ 2,367 $ 155,219 $ 161,388 2. Nonperforming — — — 186 — 33 922 1,141 Total $ 311 $ 1,061 $ 601 $ 910 $ 1,105 $ 2,400 $ 156,141 $ 162,529 Loans to Individuals Payment Performance 1. Performing $ 263 $ 1,305 $ 1,183 $ 823 $ 342 $ 2,180 $ 19,249 $ 25,345 2. Nonperforming — — — — — 123 — 123 Total $ 263 $ 1,305 $ 1,183 $ 823 $ 342 $ 2,303 $ 19,249 $ 25,468 Lease Financings Payment Performance 1. Performing $ 15,160 $ 67,256 $ 42,254 $ 26,121 $ 9,364 $ 2,657 $ — $ 162,812 2. Nonperforming — — 23 3 216 5 — 247 Total $ 15,160 $ 67,256 $ 42,277 $ 26,124 $ 9,580 $ 2,662 $ — $ 163,059 Totals by Payment Performance 1. Performing $ 81,583 $ 256,050 $ 95,762 $ 64,912 $ 48,283 $ 119,453 $ 175,581 $ 841,624 2. Nonperforming — 1,065 23 244 216 1,311 922 3,781 Total $ 81,583 $ 257,115 $ 95,785 $ 65,156 $ 48,499 $ 120,764 $ 176,503 $ 845,405 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total At December 31, 2020 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 191,987 $ 61,880 $ 56,314 $ 50,983 $ 38,975 $ 84,138 $ 1,237 $ 485,514 2. Nonperforming 666 — 56 — — 1,364 — 2,086 Total $ 192,653 $ 61,880 $ 56,370 $ 50,983 $ 38,975 $ 85,502 $ 1,237 $ 487,600 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 1,195 $ 815 $ 829 $ 1,160 $ 518 $ 2,189 $ 158,803 $ 165,509 2. Nonperforming — — 198 — — 36 866 1,100 Total $ 1,195 $ 815 $ 1,027 $ 1,160 $ 518 $ 2,225 $ 159,669 $ 166,609 Loans to Individuals Payment Performance 1. Performing $ 1,795 $ 1,425 $ 970 $ 441 $ 220 $ 2,266 $ 20,180 $ 27,297 2. Nonperforming — — — — — 23 162 185 Total $ 1,795 $ 1,425 $ 970 $ 441 $ 220 $ 2,289 $ 20,342 $ 27,482 Lease Financings Payment Performance 1. Performing $ 72,173 $ 45,972 $ 30,679 $ 11,613 $ 3,616 $ 567 $ — $ 164,620 2. Nonperforming 12 182 5 205 7 8 — 419 Total $ 72,185 $ 46,154 $ 30,684 $ 11,818 $ 3,623 $ 575 $ — $ 165,039 Totals by Payment Performance 1. Performing $ 267,150 $ 110,092 $ 88,792 $ 64,197 $ 43,329 $ 89,160 $ 180,220 $ 842,940 2. Nonperforming 678 182 259 205 7 1,431 1,028 3,790 Total $ 267,828 $ 110,274 $ 89,051 $ 64,402 $ 43,336 $ 90,591 $ 181,248 $ 846,730 The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2021 and December 31, 2020. Allowance for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases The allowance for credit losses (ACL) on loans decreased during the three months ended March 31, 2021 primarily due to favorable changes in economic assumptions, which were impacted by the ongoing recovery from the COVID-19 pandemic, partially offset by loan growth. There were no changes to the reasonable and supportable forecast period, the reversion period, or any other significant methodology changes during the three months ended March 31, 2021. The following presents, by portfolio segment, a summary of the activity in the allowance for credit losses, loans and leases, for the three months ended March 31, 2021 and 2020: (Dollars in thousands) Beginning balance Adjustment to initially apply ASU No. 2016-13 for CECL (Reversal of provision) provision for credit losses Charge-offs Recoveries Ending balance Three Months Ended March 31, 2021 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 13,584 $ — $ (3,078) $ (338) $ 65 $ 10,233 Real Estate-Commercial 52,230 — (6,771) — — 45,459 Real Estate-Construction 3,298 — (499) — — 2,799 Real Estate-Residential Secured for Business Purpose 7,317 — (679) — 54 6,692 Real Estate-Residential Secured for Personal Purpose 3,055 — 1 — — 3,056 Real Estate-Home Equity Secured for Personal Purpose 1,176 — 79 — 2 1,257 Loans to Individuals 533 — (58) (56) 28 447 Lease Financings 1,701 — (254) (91) 48 1,404 Unallocated 150 — — N/A N/A 150 Total $ 83,044 $ — $ (11,259) $ (485) $ 197 $ 71,497 Three Months Ended March 31, 2020 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 8,759 $ 5,284 $ 5,630 $ (481) $ 52 $ 19,244 Real Estate-Commercial 15,750 6,208 12,817 — 35 34,810 Real Estate-Construction 2,446 29 642 — — 3,117 Real Estate-Residential Secured for Business Purpose 2,622 2,502 782 (3) 3 5,906 Real Estate-Residential Secured for Personal Purpose 2,713 (706) 114 — — 2,121 Real Estate-Home Equity Secured for Personal Purpose 1,076 (364) 78 — 5 795 Loans to Individuals 470 104 47 (35) 14 600 Lease Financings 1,311 (135) 376 (152) 73 1,473 Unallocated 184 — (34) N/A N/A 150 Total $ 35,331 $ 12,922 $ 20,452 $ (671) $ 182 $ 68,216 N/A – Not applicable The following presents, by portfolio segment, the balance in the ACL on loans and leases, disaggregated on the basis of whether the loan or lease was measured for credit loss as a pooled loan or lease or if it was individually analyzed for a reserve at March 31, 2021 and 2020: Allowance for credit losses, loans and leases Loans and leases held for investment (Dollars in thousands) Ending balance: individually analyzed Ending balance: pooled Total ending balance Ending balance: individually analyzed Ending balance: pooled Loans measured at fair value Total ending balance At March 31, 2021 Commercial, Financial and Agricultural $ 253 $ 9,980 $ 10,233 $ 2,006 $ 869,990 $ — $ 871,996 Paycheck Protection Program — — — — 528,452 — 528,452 Real Estate-Commercial — 45,459 45,459 22,026 2,509,522 152 2,531,700 Real Estate-Construction — 2,799 2,799 — 249,652 — 249,652 Real Estate-Residential Secured for Business Purpose 3 6,689 6,692 2,859 384,942 — 387,801 Real Estate-Residential Secured for Personal Purpose 25 3,031 3,056 1,867 492,482 — 494,349 Real Estate-Home Equity Secured for Personal Purpose — 1,257 1,257 1,089 161,440 — 162,529 Loans to Individuals — 447 447 — 25,468 — 25,468 Lease Financings — 1,404 1,404 — 163,059 — 163,059 Unallocated N/A 150 150 N/A N/A N/A N/A Total $ 281 $ 71,216 $ 71,497 $ 29,847 $ 5,385,007 $ 152 $ 5,415,006 At March 31, 2020 Commercial, Financial and Agricultural $ 698 $ 18,546 $ 19,244 $ 3,934 $ 940,255 $ — $ 944,189 Real Estate-Commercial 1,547 33,263 34,810 28,827 2,071,584 288 2,100,699 Real Estate-Construction — 3,117 3,117 — 215,150 — 215,150 Real Estate-Residential Secured for Business Purpose 95 5,811 5,906 1,270 376,374 — 377,644 Real Estate-Residential Secured for Personal Purpose 195 1,926 2,121 1,280 453,718 — 454,998 Real Estate-Home Equity Secured for Personal Purpose — 795 795 820 176,585 — 177,405 Loans to Individuals — 600 600 — 29,170 — 29,170 Lease Financings — 1,473 1,473 — 149,570 — 149,570 Unallocated N/A 150 150 N/A N/A N/A N/A Total $ 2,535 $ 65,681 $ 68,216 $ 36,131 $ 4,412,406 $ 288 $ 4,448,825 N/A – Not applicable Troubled Debt Restructured Loans There were no loans that were restructured during the three months ended March 31, 2021 or March 31, 2020. The Corporation modified certain loans and leases via principal and/or interest deferrals in accordance with Section 4013 of the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and have not categorized these modifications as troubled debt restructurings. These loan and leases had a combined principal balance of approximately $73.0 million as of March 31, 2021, which represents approximately 1.5% of the loan portfolio, excluding PPP loans. There were no accruing or nonaccrual troubled debt restructured loans for which there were payment defaults within twelve months of the restructuring date for the three months ended March 31, 2021 or March 31, 2020. The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at March 31, 2021 and December 31, 2020: (Dollars in thousands) At March 31, 2021 At December 31, 2020 Real estate-residential secured for personal purpose $ 57 $ 64 Total $ 57 $ 64 There was no foreclosed residential real estate property included in other real estate owned at March 31, 2021 and December 31, 2020. Lease Financings The Corporation, through Univest Capital, Inc., an equipment financing business and a subsidiary of the Bank, provides lease financing to customers primarily in the form of sales-type leases with fixed payment terms and $1.00 buyout clauses. A minor number of contracts are classified as either direct financing leases or operating leases. The fair value of the identified assets within sales-type and direct financing leases are equal to the carrying amount such that there is no profit or loss recorded or deferred upon lease commencement. All receivables related to the equipment financing business are recorded within lease financings. The following presents the schedule of minimum lease payments receivable: (Dollars in thousands) At March 31, 2021 At December 31, 2020 2021 (excluding the three months ended March 31, 2021) $ 47,581 $ 61,724 2022 53,034 49,970 2023 38,736 35,631 2024 23,604 20,821 2025 10,937 8,319 Thereafter 3,044 2,763 Total future minimum lease payments receivable 176,936 179,228 Plus: Unguaranteed residual 938 914 Plus: Initial direct costs 2,468 2,567 Less: Imputed interest (17,283) (17,670) Lease financings $ 163,059 $ 165,039 |