Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories (Dollars in thousands) At June 30, 2024 At December 31, 2023 Commercial, financial and agricultural $ 1,055,332 $ 989,723 Real estate-commercial 3,373,889 3,302,798 Real estate-construction 313,229 394,462 Real estate-residential secured for business purpose 532,628 517,002 Real estate-residential secured for personal purpose 952,665 909,015 Real estate-home equity secured for personal purpose 179,150 179,282 Loans to individuals 26,430 27,749 Lease financings 251,514 247,183 Total loans and leases held for investment, net of deferred income $ 6,684,837 $ 6,567,214 Less: Allowance for credit losses, loans and leases (85,745) (85,387) Net loans and leases held for investment $ 6,599,092 $ 6,481,827 Imputed interest on lease financings, included in the above table $ (32,145) $ (30,485) Net deferred costs, included in the above table 7,803 7,949 Overdraft deposits included in the above table 137 280 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, 2024 and December 31, 2023: 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, 2024 Commercial, financial and agricultural $ 2,046 $ 635 $ — $ 2,681 $ 1,050,414 $ 1,053,095 $ 2,237 $ 1,055,332 Real estate—commercial real estate and construction: Commercial real estate 4,339 48 — 4,387 3,365,362 3,369,749 4,140 3,373,889 Construction — — — — 309,706 309,706 3,523 313,229 Real estate—residential and home equity: Residential secured for business purpose 411 436 — 847 530,959 531,806 822 532,628 Residential secured for personal purpose 5,993 572 — 6,565 942,282 948,847 3,818 952,665 Home equity secured for personal purpose 753 — — 753 177,204 177,957 1,193 179,150 Loans to individuals 186 84 58 328 26,087 26,415 15 26,430 Lease financings 1,431 508 147 2,086 248,976 251,062 452 251,514 Total $ 15,159 $ 2,283 $ 205 $ 17,647 $ 6,650,990 $ 6,668,637 $ 16,200 $ 6,684,837 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, 2023 Commercial, financial and agricultural $ 1,355 $ 348 $ 285 $ 1,988 $ 985,469 $ 987,457 $ 2,266 $ 989,723 Real estate—commercial real estate and construction: Commercial real estate 1,763 1,072 — 2,835 3,294,254 3,297,089 5,709 3,302,798 Construction 10,022 45 — 10,067 378,328 388,395 6,067 394,462 Real estate—residential and home equity: Residential secured for business purpose 930 643 — 1,573 514,339 515,912 1,090 517,002 Residential secured for personal purpose 6,464 76 — 6,540 898,262 904,802 4,213 909,015 Home equity secured for personal purpose 721 144 — 865 177,301 178,166 1,116 179,282 Loans to individuals 191 84 37 312 27,437 27,749 — 27,749 Lease financings 987 374 212 1,573 245,552 247,125 58 247,183 Total $ 22,433 $ 2,786 $ 534 $ 25,753 $ 6,520,942 $ 6,546,695 $ 20,519 $ 6,567,214 Nonperforming Loans and Leases The following presents, by class of loans and leases, nonperforming loans and leases at June 30, 2024 and December 31, 2023. At June 30, 2024 At December 31, 2023 (Dollars in thousands) Nonaccrual Loans and Total Nonperforming Nonaccrual Loans and Total Nonperforming Loans held for sale $ — $ — $ — $ 8 $ — $ 8 Loans and leases held for investment: Commercial, financial and agricultural $ 2,237 $ — $ 2,237 $ 2,266 $ 285 $ 2,551 Real estate—commercial real estate and construction: Commercial real estate 4,140 — 4,140 5,709 — 5,709 Construction 3,523 — 3,523 6,067 — 6,067 Real estate—residential and home equity: Residential secured for business purpose 822 — 822 1,090 — 1,090 Residential secured for personal purpose 3,818 — 3,818 4,213 — 4,213 Home equity secured for personal purpose 1,193 — 1,193 1,116 — 1,116 Loans to individuals 15 58 73 — 37 37 Lease financings 452 147 599 58 212 270 Total $ 16,200 $ 205 $ 16,405 $ 20,527 $ 534 $ 21,061 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, 2024 and December 31, 2023. (Dollars in thousands) Nonaccrual With No Allowance for Credit Losses Nonaccrual With Allowance for Credit Losses Total Nonaccrual Loans and Leases 90 Days or more Past Due and Accruing Interest At June 30, 2024 Commercial, financial and agricultural $ 394 $ 1,843 $ 2,237 $ — Real estate-commercial 3,295 845 4,140 — Real estate-construction 3,523 — 3,523 — Real estate-residential secured for business purpose 822 — 822 — Real estate-residential secured for personal purpose 3,818 — 3,818 — Real estate-home equity secured for personal purpose 1,193 — 1,193 — Loans to individuals 15 — 15 58 Lease financings — 452 452 147 Total $ 13,060 $ 3,140 $ 16,200 $ 205 At December 31, 2023 Commercial, financial and agricultural $ 332 $ 1,934 $ 2,266 $ 285 Real estate-commercial 5,687 22 5,709 — Real estate-construction 2,931 3,136 6,067 — Real estate-residential secured for business purpose 1,090 — 1,090 — Real estate-residential secured for personal purpose 4,213 — 4,213 — Real estate-home equity secured for personal purpose 1,116 — 1,116 — Loans to individuals — — — 37 Lease financings — 58 58 212 Total $ 15,369 $ 5,150 $ 20,519 $ 534 For the six months ended June 30, 2024, $87 thousand of interest income was recognized on nonaccrual loans and leases. The following table presents, by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of June 30, 2024 and December 31, 2023. (Dollars in thousands) Real Estate Other (1) None (2) Total At June 30, 2024 Commercial, financial and agricultural $ 1,741 $ — $ 496 $ 2,237 Real estate-commercial 4,122 — 18 4,140 Real estate-construction 3,523 — — 3,523 Real estate-residential secured for business purpose 822 — — 822 Real estate-residential secured for personal purpose 3,818 — — 3,818 Real estate-home equity secured for personal purpose 1,193 — — 1,193 Loans to individuals — — 15 15 Lease financings — 452 — 452 Total $ 15,219 $ 452 $ 529 $ 16,200 (Dollars in thousands) Real Estate Other (1) None Total At December 31, 2023 Commercial, financial and agricultural $ 2,236 $ 30 $ — $ 2,266 Real estate-commercial 5,709 — — 5,709 Real estate-construction 6,067 — — 6,067 Real estate-residential secured for business purpose 1,090 — — 1,090 Real estate-residential secured for personal purpose 4,213 — — 4,213 Real estate-home equity secured for personal purpose 1,116 — — 1,116 Lease financings — 58 — 58 Total $ 20,431 $ 88 $ — $ 20,519 (1) Collateral consists of business assets, including accounts receivable, personal property and equipment. (2) Loans fully guaranteed by the SBA or 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. Commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose 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 key risk indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2023. 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, 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, 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, 2024 and December 31, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total At June 30, 2024 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 126,636 $ 104,546 $ 100,248 $ 118,968 $ 20,904 $ 51,487 $ 470,243 $ 826 $ 993,858 2. Special Mention 239 820 12,864 5,161 569 5,878 19,888 — 45,419 3. Substandard — — 1,959 7,296 — 216 6,584 — 16,055 Total $ 126,875 $ 105,366 $ 115,071 $ 131,425 $ 21,473 $ 57,581 $ 496,715 $ 826 $ 1,055,332 Current period gross charge-offs $ 22 $ — $ — $ — $ — $ — $ 578 $ — $ 600 Real Estate-Commercial Risk Rating 1. Pass $ 199,721 $ 449,577 $ 875,409 $ 601,863 $ 578,115 $ 563,301 $ 74,103 $ — $ 3,342,089 2. Special Mention — — 217 — 6,182 8,629 — — 15,028 3. Substandard — 4,573 4,583 4,059 449 170 2,938 — 16,772 Total $ 199,721 $ 454,150 $ 880,209 $ 605,922 $ 584,746 $ 572,100 $ 77,041 $ — $ 3,373,889 Real Estate-Construction Risk Rating 1. Pass $ 31,475 $ 121,699 $ 111,946 $ 5,558 $ 2,187 $ 2,285 $ 19,466 $ — $ 294,616 2. Special Mention — 1,084 — — — — — — 1,084 3. Substandard — — 3,399 2,714 2,397 159 8,860 — 17,529 Total $ 31,475 $ 122,783 $ 115,345 $ 8,272 $ 4,584 $ 2,444 $ 28,326 $ — $ 313,229 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 500 $ — $ 500 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 58,321 $ 94,028 $ 144,607 $ 110,535 $ 54,515 $ 37,300 $ 30,322 $ — $ 529,628 2. Special Mention — 2,178 — — — — — — 2,178 3. Substandard — — 156 — 619 47 — — 822 Total $ 58,321 $ 96,206 $ 144,763 $ 110,535 $ 55,134 $ 37,347 $ 30,322 $ — $ 532,628 Totals By Risk Rating 1. Pass $ 416,153 $ 769,850 $ 1,232,210 $ 836,924 $ 655,721 $ 654,373 $ 594,134 $ 826 $ 5,160,191 2. Special Mention 239 4,082 13,081 5,161 6,751 14,507 19,888 — 63,709 3. Substandard — 4,573 10,097 14,069 3,465 592 18,382 — 51,178 Total $ 416,392 $ 778,505 $ 1,255,388 $ 856,154 $ 665,937 $ 669,472 $ 632,404 $ 826 $ 5,275,078 Total current period gross charge-offs $ 22 $ — $ — $ — $ — $ — $ 1,078 $ — $ 1,100 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total At December 31, 2023 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 130,755 $ 121,402 $ 135,550 $ 26,745 $ 19,029 $ 40,973 $ 455,076 $ 653 $ 930,183 2. Special Mention — 13,454 — — 6,029 — 15,251 — 34,734 3. Substandard — 2,195 8,206 — 216 — 14,189 — 24,806 Total $ 130,755 $ 137,051 $ 143,756 $ 26,745 $ 25,274 $ 40,973 $ 484,516 $ 653 $ 989,723 Real Estate-Commercial Risk Rating 1. Pass $ 480,527 $ 841,529 $ 642,133 $ 604,700 $ 329,443 $ 296,802 $ 74,947 $ — $ 3,270,081 2. Special Mention 1,238 227 3,132 5,821 — 10,416 — — 20,834 3. Substandard 1,324 2,732 2,768 — 226 1,911 2,922 — 11,883 Total $ 483,089 $ 844,488 $ 648,033 $ 610,521 $ 329,669 $ 309,129 $ 77,869 $ — $ 3,302,798 Real Estate-Construction Risk Rating 1. Pass $ 112,127 $ 218,637 $ 4,139 $ 2,600 $ 241 $ 2,211 $ 14,440 $ — $ 354,395 2. Special Mention — 7,655 — — 4,045 5,265 10,908 — 27,873 3. Substandard 2,400 1,574 2,932 — — — 5,288 — 12,194 Total $ 114,527 $ 227,866 $ 7,071 $ 2,600 $ 4,286 $ 7,476 $ 30,636 $ — $ 394,462 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 104,904 $ 151,680 $ 120,035 $ 60,360 $ 38,006 $ 11,631 $ 29,295 $ — $ 515,911 2. Special Mention — — — — — — — — — 3. Substandard — 162 — 620 — 309 — — 1,091 Total $ 104,904 $ 151,842 $ 120,035 $ 60,980 $ 38,006 $ 11,940 $ 29,295 $ — $ 517,002 Totals By Risk Rating 1. Pass $ 828,313 $ 1,333,248 $ 901,857 $ 694,405 $ 386,719 $ 351,617 $ 573,758 $ 653 $ 5,070,570 2. Special Mention 1,238 21,336 3,132 5,821 10,074 15,681 26,159 — 83,441 3. Substandard 3,724 6,663 13,906 620 442 2,220 22,399 — 49,974 Total $ 833,275 $ 1,361,247 $ 918,895 $ 700,846 $ 397,235 $ 369,518 $ 622,316 $ 653 $ 5,203,985 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, 2024 or December 31, 2023. 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, 2023. Loans and leases past due 90 days or more and loans and leases on nonaccrual status are considered nonperforming. Nonperforming loans and leases are reviewed monthly. 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, 2024 and December 31, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total At June 30, 2024 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 10,255 $ 163,408 $ 353,004 $ 200,153 $ 125,155 $ 96,871 $ 1 $ 948,847 2. Nonperforming — — 146 40 2,741 891 — 3,818 Total $ 10,255 $ 163,408 $ 353,150 $ 200,193 $ 127,896 $ 97,762 $ 1 $ 952,665 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 176 $ 401 $ 2,422 $ 435 $ 366 $ 1,474 $ 172,683 $ 177,957 2. Nonperforming — — — — — — 1,193 1,193 Total $ 176 $ 401 $ 2,422 $ 435 $ 366 $ 1,474 $ 173,876 $ 179,150 Loans to Individuals Payment Performance 1. Performing $ 1,379 $ 1,259 $ 671 $ 411 $ 58 $ 748 $ 21,831 $ 26,357 2. Nonperforming — — 15 — — 58 — 73 Total $ 1,379 $ 1,259 $ 686 $ 411 $ 58 $ 806 $ 21,831 $ 26,430 Current period gross charge-offs $ 79 $ 67 $ 18 $ — $ — $ — $ 242 $ 406 Lease Financings Payment Performance 1. Performing $ 47,583 $ 96,837 $ 59,041 $ 32,003 $ 12,066 $ 3,385 $ — $ 250,915 2. Nonperforming — — 131 427 23 18 — 599 Total $ 47,583 $ 96,837 $ 59,172 $ 32,430 $ 12,089 $ 3,403 $ — $ 251,514 Current period gross charge-offs $ — $ 92 $ 88 $ 165 $ — $ 7 $ — $ 352 Totals by Payment Performance 1. Performing $ 59,393 $ 261,905 $ 415,138 $ 233,002 $ 137,645 $ 102,478 $ 194,515 $ 1,404,076 2. Nonperforming — — 292 467 2,764 967 1,193 5,683 Total $ 59,393 $ 261,905 $ 415,430 $ 233,469 $ 140,409 $ 103,445 $ 195,708 $ 1,409,759 Total current period gross charge-offs $ 79 $ 159 $ 106 $ 165 $ — $ 7 $ 242 $ 758 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total At December 31, 2023 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 139,765 $ 328,383 $ 206,285 $ 128,157 $ 22,798 $ 79,296 $ 118 $ 904,802 2. Nonperforming — 153 43 2,749 — 1,268 — 4,213 Total $ 139,765 $ 328,536 $ 206,328 $ 130,906 $ 22,798 $ 80,564 $ 118 $ 909,015 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 511 $ 2,567 $ 510 $ 409 $ 165 $ 1,463 $ 172,541 $ 178,166 2. Nonperforming — — — — — — 1,116 1,116 Total $ 511 $ 2,567 $ 510 $ 409 $ 165 $ 1,463 $ 173,657 $ 179,282 Loans to Individuals Payment Performance 1. Performing $ 1,831 $ 894 $ 530 $ 107 $ 48 $ 1,004 $ 23,298 $ 27,712 2. Nonperforming — — — — — 37 — 37 Total $ 1,831 $ 894 $ 530 $ 107 $ 48 $ 1,041 $ 23,298 $ 27,749 Lease Financings Payment Performance 1. Performing $ 110,832 $ 70,070 $ 41,392 $ 17,874 $ 5,681 $ 1,064 $ — $ 246,913 2. Nonperforming 11 104 88 19 36 12 — 270 Total $ 110,843 $ 70,174 $ 41,480 $ 17,893 $ 5,717 $ 1,076 $ — $ 247,183 Totals by Payment Performance 1. Performing $ 252,939 $ 401,914 $ 248,717 $ 146,547 $ 28,692 $ 82,827 $ 195,957 $ 1,357,593 2. Nonperforming 11 257 131 2,768 36 1,317 1,116 5,636 Total $ 252,950 $ 402,171 $ 248,848 $ 149,315 $ 28,728 $ 84,144 $ 197,073 $ 1,363,229 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, 2024 or December 31, 2023. Allowance for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases 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, 2024 and 2023. There were no changes to the reasonable and supportable forecast period, the reversion period, or any significant methodology changes during the six months ended June 30, 2024. (Dollars in thousands) Beginning balance Provision (reversal of provision) for credit losses Charge-offs Recoveries Ending balance Three Months Ended June 30, 2024 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 13,932 $ 1,448 $ (920) $ 85 $ 14,545 Real estate-commercial 45,853 121 — 4 45,978 Real estate-construction 6,254 (101) — — 6,153 Real estate-residential secured for business purpose 8,800 (1,294) — 233 7,739 Real estate-residential secured for personal purpose 6,637 (31) — — 6,606 Real estate-home equity secured for personal purpose 1,184 504 — — 1,688 Loans to individuals 388 70 (127) 17 348 Lease financings 2,584 205 (122) 21 2,688 Total $ 85,632 $ 922 $ (1,169) $ 360 $ 85,745 Three Months Ended June 30, 2023 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 14,725 $ (589) $ (299) $ 34 $ 13,871 Real estate-commercial 43,150 1,604 — 3 44,757 Real estate-construction 4,681 752 — — 5,433 Real estate-residential secured for business purpose 8,360 336 — — 8,696 Real estate-residential secured for personal purpose 5,012 576 — — 5,588 Real estate-home equity secured for personal purpose 1,271 110 (85) — 1,296 Loans to individuals 375 262 (111) 34 560 Lease financings 2,460 136 (105) 17 2,508 Total $ 80,034 $ 3,187 $ (600) $ 88 $ 82,709 (Dollars in thousands) Beginning balance Provision (reversal of provision) for credit losses Charge-offs Recoveries Ending balance Six Months Ended June 30, 2024 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 13,699 $ 2,263 $ (1,513) $ 96 $ 14,545 Real estate-commercial 45,849 122 — 7 45,978 Real estate-construction 6,543 110 (500) — 6,153 Real estate-residential secured for business purpose 8,692 (1,188) — 235 7,739 Real estate-residential secured for personal purpose 6,349 123 — 134 6,606 Real estate-home equity secured for personal purpose 1,289 399 — — 1,688 Loans to individuals 392 305 (406) 57 348 Lease financings 2,574 439 (352) 27 2,688 Total $ 85,387 $ 2,573 $ (2,771) $ 556 $ 85,745 Six Months Ended June 30, 2023 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 16,920 $ (42) $ (3,147) $ 140 $ 13,871 Real estate-commercial 41,673 3,128 (50) 6 44,757 Real estate-construction 4,952 688 (207) — 5,433 Real estate-residential secured for business purpose 7,054 1,461 — 181 8,696 Real estate-residential secured for personal purpose 3,685 1,903 — — 5,588 Real estate-home equity secured for personal purpose 1,287 44 (85) 50 1,296 Loans to individuals 351 375 (216) 50 560 Lease financings 3,082 (498) (125) 49 2,508 Total $ 79,004 $ 7,059 $ (3,830) $ 476 $ 82,709 The following presents, by portfolio segment, the balance in the allowance for credit losses 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, 2024 and 2023: 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 Total ending balance At June 30, 2024 Commercial, financial and agricultural $ 433 $ 14,112 $ 14,545 $ 2,237 $ 1,053,095 $ 1,055,332 Real estate-commercial 23 45,955 45,978 4,140 3,369,749 3,373,889 Real estate-construction — 6,153 6,153 3,523 309,706 313,229 Real estate-residential secured for business purpose — 7,739 7,739 822 531,806 532,628 Real estate-residential secured for personal purpose — 6,606 6,606 3,818 948,847 952,665 Real estate-home equity secured for personal purpose — 1,688 1,688 1,193 177,957 179,150 Loans to individuals — 348 348 15 26,415 26,430 Lease financings — 2,688 2,688 — 251,514 251,514 Total $ 456 $ 85,289 $ 85,745 $ 15,748 $ 6,669,089 $ 6,684,837 At June 30, 2023 Commercial, financial and agricultural $ 373 $ 13,498 $ 13,871 $ 1,217 $ 1,038,048 $ 1,039,265 Real estate-commercial — 44,757 44,757 4,405 3,217,588 3,221,993 Real estate-construction — 5,433 5,433 6,202 407,202 413,404 Real estate-residential secured for business purpose — 8,696 8,696 1,032 516,489 517,521 Real estate-residential secured for personal purpose — 5,588 5,588 1,154 831,478 832,632 Real estate-home equity secured for personal purpose — 1,296 1,296 884 174,206 175,090 Loans to individuals — 560 560 — 25,544 25,544 Lease financings — 2,508 2,508 — 236,789 236,789 Total $ 373 $ 82,336 $ 82,709 $ 14,894 $ 6,447,344 $ 6,462,238 Modified Loans to Borrowers Experiencing Financial Difficulty The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023. Term Extension Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 (Dollars in thousands) Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 1 $ 4,925 0.47 % $ 10 — $ — — % $ — Real estate—commercial real estate — — — — 1 1,949 0.06 — Total 1 $ 4,925 $ 10 1 $ 1,949 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate — $ — — % $ — 1 $ 1,779 0.06 % $ — Total — $ — $ — 1 $ 1,779 $ — Other-Than-Insignificant Payment Delay Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 (Dollars in thousands) Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 2 $ 7,333 0.69 % $ 98 — $ — — % $ — Total 2 $ 7,333 $ 98 — $ — $ — *Amortized cost excludes $73 thousand and $12 thousand of accrued interest receivable on modified loans for the three months ended June 30, 2024 and June 30, 2023, respectively . Term Extension Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Dollars in thousands) Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 1 $ 4,925 0.47 % $ 10 — $ — — % $ — Real estate—commercial real estate 2 3,213 0.10 2 1 1,949 0.06 — Total 3 $ 8,138 $ 12 1 $ 1,949 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate — $ — — $ — 1 $ 1,779 0.06 % $ — Real estate—construction** 2 3,523 1.12 — 1 5,826 1.41 — Total 2 $ 3,523 $ — 2 $ 7,605 $ — Other-Than-Insignificant Payment Delay Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Dollars in thousands) Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Number Amortized Cost Basis* % of Total Class of Financing Receivable Related Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 2 $ 7,333 0.69 % $ 98 — $ — — % $ — Total 2 $ 7,333 $ 98 — $ — $ — *Amortized cost excludes $95 thousand and $12 thousand of accrued interest receivable on modified loans for the six months ended June 30, 2024 and June 30, 2023, respectively. **The one nonaccrual construction loan reported for the six months ended June 30, 2023 was modified during the first quarter of 2023. Subsequently, during the second quarter of 2023, the modified loan was placed on nonaccrual status. The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023. Term Extension Other-Than-Insignificant Payment Delay (Dollars in thousands) No. of Financial Effect No. of Financial Effect Three Months Ended June 30, 2024 Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 1 Added 10 months to the life of the loan, which reduced monthly payment amount for the borrower. 2 Provided 3-month payment deferrals to assist borrowers. Total 1 2 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Total — — Three Months Ended June 30, 2023 Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate 1 Added 3 months to the life of the loan, which reduced monthly payment amount for the borrower. — Total 1 — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate 1 Added 14 months to the life of the loan, which reduced monthly payment amount for the borrower. — Total 1 — Six Months Ended June 30, 2024 Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural 1 Added 10 months to the life of the loan, which reduced monthly payment amount for the borrower. 2 Provided 3-month payment deferrals to assist borrowers. Real estate—commercial real estate 2 Added a weighted-average 8 months to the life of the loans, which reduced monthly payment amounts for the borrowers. — Total 3 2 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—construction 2 Added a weighted-average 8 months to the life of the loans, which reduced monthly payment amounts for the borrowers. — Total 2 — Six Months Ended June 30, 2023 Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate 1 Added 3 months to the life of the loan, which reduced monthly payment amount for the borrower. — Total 1 — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial real estate 1 Added 14 months to the life of the loan, which reduced monthly payment amount for the borrower. — Real estate—construction* 1 Added 8 months to the life of the loan, which reduced monthly payment amount for the borrower. Total 2 — *Loan was modified during the first quarter of 2023. Subsequently, during the second quarter of 2023, the modified loan was place on nonaccrual status. There were no accruing or nonaccrual modified loans to borrowers experiencing financial difficulty for which there were payment defaults during the 12-month period preceding modification for the three and six months ended June 30, 2024 and 2023. The following presents, by class of loans, the amortized cost and performance status of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty that have been modified in the last 12 months. At June 30, 2024 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Total Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Commercial, financial and agricultural $ 12,258 $ — $ — $ 12,258 Real estate—commercial real estate 8,060 — — 8,060 Total $ 20,318 $ — $ — $ 20,318 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—construction $ 3,523 $ — $ — $ 3,523 Total $ 3,523 $ — $ — $ 3,523 As of June 30, 2024, the Bank had $971 thousand in commitments to extend credit to borrowers experiencing financial difficulty whose terms had been modified. The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at June 30, 2024 or December 31, 2023. (Dollars in thousands) At June 30, 2024 At December 31, 2023 Real estate-residential secured for personal purpose $ 3,176 $ 5,147 Real estate-home equity secured for personal purpose 38 — Total $ 3,214 $ 5,147 The following presents foreclosed residential real estate property included in other real estate owned at June 30, 2024 or December 31, 2023. (Dollars in thousands) At June 30, 2024 At December 31, 2023 Foreclosed residential real estate $ 79 $ 79 Lease Financings The following presents the schedule of minimum lease payments receivable: (Dollars in thousands) At June 30, 2024 At December 31, 2023 2024 (excluding the six months ended June 30, 2024) $ 48,427 $ 87,101 2025 84,578 74,002 2026 67,339 56,525 2027 47,379 36,944 2028 23,465 14,945 Thereafter 7,695 3,506 Total future minimum lease payments receivable 278,883 273,023 Plus: Unguaranteed residual 1,498 1,242 Plus: Initial direct costs 3,278 3,403 Less: Imputed interest (32,145) (30,485) Lease financings $ 251,514 $ 247,183 |