Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories (Dollars in thousands) At June 30, 2021 At December 31, 2020 Commercial, financial and agricultural $ 920,621 $ 892,665 Paycheck Protection Program 252,849 483,773 Real estate-commercial 2,600,919 2,458,872 Real estate-construction 274,529 243,355 Real estate-residential secured for business purpose 407,664 381,446 Real estate-residential secured for personal purpose 513,330 487,600 Real estate-home equity secured for personal purpose 160,018 166,609 Loans to individuals 25,845 27,482 Lease financings 171,538 165,039 Total loans and leases held for investment, net of deferred income $ 5,327,313 $ 5,306,841 Less: Allowance for credit losses, loans and leases (71,355) (83,044) Net loans and leases held for investment $ 5,255,958 $ 5,223,797 Imputed interest on lease financings, included in the above table $ (18,049) $ (17,670) Net deferred fees, included in the above table (2,044) (2,903) Overdraft deposits included in the above table 4,236 948 Age Analysis of Past Due Loans and Leases The following presents, by class of loans and leases held for investment, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at June 30, 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 June 30, 2021 Commercial, financial and agricultural $ 629 $ 599 $ 476 $ 1,704 $ 917,671 $ 919,375 $ 1,246 $ 920,621 Paycheck Protection Program 517 — — 517 252,332 252,849 — 252,849 Real estate—commercial real estate and construction: Commercial real estate 7,734 — 137 7,871 2,566,784 2,574,655 26,264 2,600,919 Construction 153 — — 153 274,376 274,529 — 274,529 Real estate—residential and home equity: Residential secured for business purpose 1,368 1,293 31 2,692 401,927 404,619 3,045 407,664 Residential secured for personal purpose 1,695 761 — 2,456 508,714 511,170 2,160 513,330 Home equity secured for personal purpose 562 — — 562 158,673 159,235 783 160,018 Loans to individuals 69 38 19 126 25,719 25,845 — 25,845 Lease financings 242 94 87 423 171,109 171,532 6 171,538 Total $ 12,969 $ 2,785 $ 750 $ 16,504 $ 5,277,305 $ 5,293,809 $ 33,504 $ 5,327,313 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 June 30, 2021 and December 31, 2020. At June 30, 2021 At December 31, 2020 (Dollars in thousands) Nonaccrual Accruing Loans and Total Nonperforming Nonaccrual Accruing Loans and Total Nonperforming Loans held for sale ** $ 3,962 $ — $ — $ 3,962 $ — $ — $ — $ — Loans and leases held for investment: Commercial, financial and agricultural 1,246 — 476 1,722 2,827 — 50 2,877 Real estate—commercial real estate and construction: Commercial real estate 26,264 — 137 26,401 22,739 — 945 23,684 Real estate—residential and home equity: Residential secured for business purpose 3,045 — 31 3,076 2,786 — — 2,786 Residential secured for personal purpose 2,160 — — 2,160 2,086 — — 2,086 Home equity secured for personal purpose 783 52 — 835 1,047 53 — 1,100 Loans to individuals — — 19 19 — — 185 185 Lease financings 6 — 87 93 207 — 212 419 Total $ 37,466 $ 52 $ 750 $ 38,268 $ 31,692 $ 53 $ 1,392 $ 33,137 * Includes nonaccrual troubled debt restructured loans of $2.3 million and $14.1 million at June 30, 2021 and December 31, 2020, respectively. **Includes two commercial real estate loans at June 30, 2021. The following table presents the amortized cost basis of loans and leases held for investment on nonaccrual status and loans and leases held for investment 90 days or more past due and still accruing as of June 30, 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 June 30, 2021 Commercial, financial and agricultural $ 887 $ 359 $ 1,246 $ 476 Real estate-commercial 26,264 — 26,264 137 Real estate-residential secured for business purpose 3,045 — 3,045 31 Real estate-residential secured for personal purpose 2,035 125 2,160 — Real estate-home equity secured for personal purpose 783 — 783 — Loans to individuals — — — 19 Lease financings — 6 6 87 Total $ 33,014 $ 490 $ 33,504 $ 750 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 For the six months ended June 30, 2021, $4 thousand of interest income was recognized on nonaccrual loans and leases. The following table presents the amortized cost basis of collateral-dependent nonaccrual loans by class of loans and type of collateral as of June 30, 2021 and December 31, 2020. (Dollars in thousands) Real Estate Other (1) None (2) Total At June 30, 2021 Commercial, financial and agricultural $ 352 $ 894 $ — $ 1,246 Real estate-commercial 26,264 — — 26,264 Real estate-residential secured for business purpose 3,045 — — 3,045 Real estate-residential secured for personal purpose 2,160 — — 2,160 Real estate-home equity secured for personal purpose 783 — — 783 Total $ 32,604 $ 894 $ — $ 33,498 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 June 30, 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 June 30, 2021 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 113,440 $ 117,162 $ 77,601 $ 65,416 $ 31,339 $ 58,679 $ 438,655 $ 902,292 2. Special Mention — 2,633 782 285 383 1,610 6,264 11,957 3. Substandard 125 — 34 143 15 313 5,742 6,372 Total $ 113,565 $ 119,795 $ 78,417 $ 65,844 $ 31,737 $ 60,602 $ 450,661 $ 920,621 Paycheck Protection Program Risk Rating 1. Pass $ 165,540 $ 87,309 $ — $ — $ — $ — $ — $ 252,849 2. Special Mention — — — — — — — — 3. Substandard — — — — — — — — Total $ 165,540 $ 87,309 $ — $ — $ — $ — $ — $ 252,849 Real Estate-Commercial Risk Rating 1. Pass $ 408,934 $ 957,849 $ 446,367 $ 180,449 $ 245,775 $ 236,338 $ 38,710 $ 2,514,422 2. Special Mention 2,509 4,794 25,742 3,447 — 5,751 1,281 43,524 3. Substandard — 33,145 3,268 1,711 1,873 2,574 402 42,973 Total $ 411,443 $ 995,788 $ 475,377 $ 185,607 $ 247,648 $ 244,663 $ 40,393 $ 2,600,919 Real Estate-Construction Risk Rating 1. Pass $ 85,521 $ 94,373 $ 46,937 $ 15,797 $ 199 $ 3,020 $ 7,390 $ 253,237 2. Special Mention — 20,500 — — 792 — — 21,292 3. Substandard — — — — — — — — Total $ 85,521 $ 114,873 $ 46,937 $ 15,797 $ 991 $ 3,020 $ 7,390 $ 274,529 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 100,638 $ 96,942 $ 57,903 $ 39,901 $ 35,781 $ 42,428 $ 27,888 $ 401,481 2. Special Mention — 361 221 185 75 1,645 — 2,487 3. Substandard — — 884 48 32 1,934 798 3,696 Total $ 100,638 $ 97,303 $ 59,008 $ 40,134 $ 35,888 $ 46,007 $ 28,686 $ 407,664 Totals By Risk Rating 1. Pass $ 874,073 $ 1,353,635 $ 628,808 $ 301,563 $ 313,094 $ 340,465 $ 512,643 $ 4,324,281 2. Special Mention 2,509 28,288 26,745 3,917 1,250 9,006 7,545 79,260 3. Substandard 125 33,145 4,186 1,902 1,920 4,821 6,942 53,041 Total $ 876,707 $ 1,415,068 $ 659,739 $ 307,382 $ 316,264 $ 354,292 $ 527,130 $ 4,456,582 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 June 30, 2021 or 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 June 30, 2021 or 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 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 June 30, 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 June 30, 2021 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 130,371 $ 175,767 $ 43,250 $ 30,493 $ 31,029 $ 99,443 $ 817 $ 511,170 2. Nonperforming 106 651 — 373 — 1,030 — 2,160 Total $ 130,477 $ 176,418 $ 43,250 $ 30,866 $ 31,029 $ 100,473 $ 817 $ 513,330 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 665 $ 1,017 $ 528 $ 545 $ 963 $ 2,105 $ 153,360 $ 159,183 2. Nonperforming — — — 183 — 28 624 835 Total $ 665 $ 1,017 $ 528 $ 728 $ 963 $ 2,133 $ 153,984 $ 160,018 Loans to Individuals Payment Performance 1. Performing $ 1,089 $ 1,150 $ 1,013 $ 670 $ 247 $ 2,123 $ 19,534 $ 25,826 2. Nonperforming — — — — — 19 — 19 Total $ 1,089 $ 1,150 $ 1,013 $ 670 $ 247 $ 2,142 $ 19,534 $ 25,845 Lease Financings Payment Performance 1. Performing $ 38,488 $ 62,676 $ 38,257 $ 22,752 $ 7,817 $ 1,455 $ — $ 171,445 2. Nonperforming — — 20 2 10 61 — 93 Total $ 38,488 $ 62,676 $ 38,277 $ 22,754 $ 7,827 $ 1,516 $ — $ 171,538 Totals by Payment Performance 1. Performing $ 170,613 $ 240,610 $ 83,048 $ 54,460 $ 40,056 $ 105,126 $ 173,711 $ 867,624 2. Nonperforming 106 651 20 558 10 1,138 624 3,107 Total $ 170,719 $ 241,261 $ 83,068 $ 55,018 $ 40,066 $ 106,264 $ 174,335 $ 870,731 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 June 30, 2021 or 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 and six months ended June 30, 2021 primarily due to favorable changes in economic-related 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 or six months ended June 30, 2021. The following presents, by portfolio segment, a summary of the activity in the allowance for credit losses, loans and leases, for the three and six months ended June 30, 2021 and 2020: (Dollars in thousands) Beginning balance Provision (reversal of provision) for credit losses Charge-offs Recoveries Ending balance Three Months Ended June 30, 2021 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 10,233 $ 1,689 $ (350) $ 162 $ 11,734 Paycheck Protection Program — 3 — — 3 Real Estate-Commercial 45,459 (2,347) (523) 605 43,194 Real Estate-Construction 2,799 850 — — 3,649 Real Estate-Residential Secured for Business Purpose 6,692 260 (227) 22 6,747 Real Estate-Residential Secured for Personal Purpose 3,056 (436) — — 2,620 Real Estate-Home Equity Secured for Personal Purpose 1,257 (155) — 22 1,124 Loans to Individuals 447 (145) (23) 40 319 Lease Financings 1,404 382 (18) 47 1,815 Unallocated 150 — N/A N/A 150 Total $ 71,497 $ 101 $ (1,141) $ 898 $ 71,355 Three Months Ended June 30, 2020 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 19,244 $ (2,034) $ (744) $ 270 $ 16,736 Real Estate-Commercial 34,810 18,663 (2,802) — 50,671 Real Estate-Construction 3,117 1,013 — — 4,130 Real Estate-Residential Secured for Business Purpose 5,906 2,365 (96) 5 8,180 Real Estate-Residential Secured for Personal Purpose 2,121 548 — — 2,669 Real Estate-Home Equity Secured for Personal Purpose 795 273 — 3 1,071 Loans to Individuals 600 239 (93) 25 771 Lease Financings 1,473 510 (212) 68 1,839 Unallocated 150 — N/A N/A 150 Total $ 68,216 $ 21,577 $ (3,947) $ 371 $ 86,217 N /A – Not applicable (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 Six Months Ended June 30, 2021 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 13,584 $ — $ (1,389) $ (688) $ 227 $ 11,734 Paycheck Protection Program — — 3 — — 3 Real Estate-Commercial 52,230 — (9,118) (523) 605 43,194 Real Estate-Construction 3,298 — 351 — — 3,649 Real Estate-Residential Secured for Business Purpose 7,317 — (419) (227) 76 6,747 Real Estate-Residential Secured for Personal Purpose 3,055 — (435) — — 2,620 Real Estate-Home Equity Secured for Personal Purpose 1,176 — (76) — 24 1,124 Loans to Individuals 533 — (203) (79) 68 319 Lease Financings 1,701 — 128 (109) 95 1,815 Unallocated 150 — — N/A N/A 150 Total $ 83,044 $ — $ (11,158) $ (1,626) $ 1,095 $ 71,355 Six Months Ended June 30, 2020 Allowance for credit losses, loans and leases: Commercial, Financial and Agricultural $ 8,759 $ 5,284 $ 3,596 $ (1,225) $ 322 $ 16,736 Real Estate-Commercial 15,750 6,208 31,480 (2,802) 35 50,671 Real Estate-Construction 2,446 29 1,655 — — 4,130 Real Estate-Residential Secured for Business Purpose 2,622 2,502 3,147 (99) 8 8,180 Real Estate-Residential Secured for Personal Purpose 2,713 (706) 662 — — 2,669 Real Estate-Home Equity Secured for Personal Purpose 1,076 (364) 351 — 8 1,071 Loans to Individuals 470 104 286 (128) 39 771 Lease Financings 1,311 (135) 886 (364) 141 1,839 Unallocated 184 — (34) N/A N/A 150 Total $ 35,331 $ 12,922 $ 42,029 $ (4,618) $ 553 $ 86,217 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 June 30, 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 June 30, 2021 Commercial, Financial and Agricultural $ 333 $ 11,401 $ 11,734 $ 1,246 $ 919,375 $ — $ 920,621 Paycheck Protection Program — 3 3 — 252,849 — 252,849 Real Estate-Commercial — 43,194 43,194 26,264 2,574,537 118 2,600,919 Real Estate-Construction — 3,649 3,649 — 274,529 — 274,529 Real Estate-Residential Secured for Business Purpose — 6,747 6,747 3,045 404,619 — 407,664 Real Estate-Residential Secured for Personal Purpose 23 2,597 2,620 2,160 511,170 — 513,330 Real Estate-Home Equity Secured for Personal Purpose — 1,124 1,124 783 159,235 — 160,018 Loans to Individuals — 319 319 — 25,845 — 25,845 Lease Financings — 1,815 1,815 — 171,538 — 171,538 Unallocated N/A 150 150 N/A N/A N/A N/A Total $ 356 $ 70,999 $ 71,355 $ 33,498 $ 5,293,697 $ 118 $ 5,327,313 At June 30, 2020 Commercial, Financial and Agricultural $ 905 $ 15,831 $ 16,736 $ 4,208 $ 818,525 $ — $ 822,733 Paycheck Protection Program $ — $ — $ — $ — $ 498,978 $ — $ 498,978 Real Estate-Commercial 19 50,652 50,671 17,568 2,204,667 255 2,222,490 Real Estate-Construction — 4,130 4,130 — 212,534 — 212,534 Real Estate-Residential Secured for Business Purpose 1 8,179 8,180 1,754 374,296 — 376,050 Real Estate-Residential Secured for Personal Purpose 210 2,459 2,669 1,268 461,244 — 462,512 Real Estate-Home Equity Secured for Personal Purpose — 1,071 1,071 977 172,064 — 173,041 Loans to Individuals — 771 771 — 29,222 — 29,222 Lease Financings — 1,839 1,839 — 154,249 — 154,249 Unallocated N/A 150 150 N/A N/A N/A N/A Total $ 1,135 $ 85,082 $ 86,217 $ 25,775 $ 4,925,779 $ 255 $ 4,951,809 N/A – Not applicable Troubled Debt Restructured Loans The following presents, by class of loans, information regarding troubled debt restructurings of accruing and nonaccrual loans: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 (Dollars in thousands) Number Pre- Post- Number Pre- Post- Accruing Troubled Debt Restructured Loans: Total — $ — $ — — $ — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — $ — 1 $ 619 $ 619 Total — $ — $ — 1 $ 619 $ 619 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (Dollars in thousands) Number Pre- Post- Number Pre- Post- Accruing Troubled Debt Restructured Loans: Total — $ — $ — — $ — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — $ — 1 $ 619 $ 619 Total — $ — $ — 1 $ 619 $ 619 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 loans and leases had a combined principal balance of approximately $54.2 million as of June 30, 2021, which represents approximately 1.1% of the loan portfolio, excluding PPP loans. The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and six months ended June 30, 2021 and 2020. Amortization Period Extension (Dollars in thousands) No. of Amount Three Months Ended June 30, 2021 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Total — $ — Three Months Ended June 30, 2020 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural 1 $ 619 Total 1 $ 619 Six Months Ended June 30, 2021 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Total — $ — Six Months Ended June 30, 2020 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural 1 $ 619 Total 1 $ 619 The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands) Number Recorded Number Recorded Number Recorded Number Recorded Accruing Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — 1 $ 13 — $ — 1 $ 13 Real estate—residential secured for personal purpose 1 530 — — 1 530 — — Total 1 $ 530 1 $ 13 1 $ 530 1 $ 13 The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at June 30, 2021 and December 31, 2020: (Dollars in thousands) At June 30, 2021 At December 31, 2020 Real estate-residential secured for personal purpose $ — $ 64 Total $ — $ 64 There was no foreclosed residential real estate property included in other real estate owned at June 30, 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 June 30, 2021 At December 31, 2020 2021 (excluding the six months ended June 30, 2021) $ 34,230 $ 61,724 2022 58,374 49,970 2023 44,053 35,631 2024 28,539 20,821 2025 15,211 8,319 Thereafter 5,630 2,763 Total future minimum lease payments receivable 186,037 179,228 Plus: Unguaranteed residual 993 914 Plus: Initial direct costs 2,557 2,567 Less: Imputed interest (18,049) (17,670) Lease financings $ 171,538 $ 165,039 |