Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories (Dollars in thousands) At September 30, 2024 At December 31, 2023 Commercial, financial and agricultural $ 1,044,043 $ 989,723 Real estate-commercial 3,442,083 3,302,798 Real estate-construction 285,616 394,462 Real estate-residential secured for business purpose 530,674 517,002 Real estate-residential secured for personal purpose 969,562 909,015 Real estate-home equity secured for personal purpose 182,901 179,282 Loans to individuals 26,794 27,749 Lease financings 249,061 247,183 Total loans and leases held for investment, net of deferred income $ 6,730,734 $ 6,567,214 Less: Allowance for credit losses, loans and leases (86,041) (85,387) Net loans and leases held for investment $ 6,644,693 $ 6,481,827 Imputed interest on lease financings, included in the above table $ (32,337) $ (30,485) Net deferred costs, included in the above table 7,810 7,949 Overdraft deposits included in the above table 148 280 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 September 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 September 30, 2024 Commercial, financial and agricultural $ 1,008 $ 888 $ — $ 1,896 $ 1,039,444 $ 1,041,340 $ 2,703 $ 1,044,043 Real estate—commercial real estate and construction: Commercial real estate 3,539 975 — 4,514 3,433,889 3,438,403 3,680 3,442,083 Construction 1,831 — — 1,831 280,986 282,817 2,799 285,616 Real estate—residential and home equity: Residential secured for business purpose 1,720 169 — 1,889 528,155 530,044 630 530,674 Residential secured for personal purpose 3,292 644 — 3,936 961,641 965,577 3,985 969,562 Home equity secured for personal purpose 429 829 — 1,258 180,640 181,898 1,003 182,901 Loans to individuals 70 77 28 175 26,604 26,779 15 26,794 Lease financings 840 1,665 282 2,787 245,770 248,557 504 249,061 Total $ 12,729 $ 5,247 $ 310 $ 18,286 $ 6,697,129 $ 6,715,415 $ 15,319 $ 6,730,734 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 September 30, 2024 and December 31, 2023. At September 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 $ 2,703 $ — $ 2,703 $ 2,266 $ 285 $ 2,551 Real estate—commercial real estate and construction: Commercial real estate 3,680 — 3,680 5,709 — 5,709 Construction 2,799 — 2,799 6,067 — 6,067 Real estate—residential and home equity: Residential secured for business purpose 630 — 630 1,090 — 1,090 Residential secured for personal purpose 3,985 — 3,985 4,213 — 4,213 Home equity secured for personal purpose 1,003 — 1,003 1,116 — 1,116 Loans to individuals 15 28 43 — 37 37 Lease financings 504 282 786 58 212 270 Total $ 15,319 $ 310 $ 15,629 $ 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 September 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 September 30, 2024 Commercial, financial and agricultural $ 297 $ 2,406 $ 2,703 $ — Real estate-commercial 2,835 845 3,680 — Real estate-construction 2,799 — 2,799 — Real estate-residential secured for business purpose 630 — 630 — Real estate-residential secured for personal purpose 3,985 — 3,985 — Real estate-home equity secured for personal purpose 1,003 — 1,003 — Loans to individuals 15 — 15 28 Lease financings — 504 504 282 Total $ 11,564 $ 3,755 $ 15,319 $ 310 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 nine months ended September 30, 2024, $101 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 September 30, 2024 and December 31, 2023. (Dollars in thousands) Real Estate Other (1) None (2) Total At September 30, 2024 Commercial, financial and agricultural $ 1,591 $ 617 $ 495 $ 2,703 Real estate-commercial 3,654 8 18 3,680 Real estate-construction 2,799 — — 2,799 Real estate-residential secured for business purpose 630 — — 630 Real estate-residential secured for personal purpose 3,985 — — 3,985 Real estate-home equity secured for personal purpose 1,003 — — 1,003 Loans to individuals — — 15 15 Lease financings — 504 — 504 Total $ 13,662 $ 1,129 $ 528 $ 15,319 (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 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 September 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 September 30, 2024 Commercial, Financial and Agricultural Risk Rating 1. Pass $ 135,459 $ 93,186 $ 90,971 $ 118,956 $ 18,160 $ 46,760 $ 473,047 $ 415 $ 976,954 2. Special Mention 3,748 695 12,097 115 459 — 15,864 — 32,978 3. Substandard — — 1,922 7,135 — 6,495 18,559 — 34,111 Total $ 139,207 $ 93,881 $ 104,990 $ 126,206 $ 18,619 $ 53,255 $ 507,470 $ 415 $ 1,044,043 Current period gross charge-offs $ 64 $ — $ — $ 70 $ — $ — $ 1,887 $ — $ 2,021 Real Estate-Commercial Risk Rating 1. Pass $ 345,128 $ 449,928 $ 876,697 $ 591,966 $ 557,715 $ 524,602 $ 68,857 $ — $ 3,414,893 2. Special Mention — — — — 1,684 9,208 — — 10,892 3. Substandard — 3,360 4,565 4,049 8 1,371 2,945 — 16,298 Total $ 345,128 $ 453,288 $ 881,262 $ 596,015 $ 559,407 $ 535,181 $ 71,802 $ — $ 3,442,083 Current period gross charge-offs $ — $ — $ — $ — $ — $ 35 $ — $ — $ 35 Real Estate-Construction Risk Rating 1. Pass $ 50,947 $ 110,331 $ 82,815 $ 4,154 $ 1,706 $ 1,929 $ 22,557 $ — $ 274,439 2. Special Mention — 1,079 — — — — — — 1,079 3. Substandard 251 — 3,838 2,649 2,403 — 957 — 10,098 Total $ 51,198 $ 111,410 $ 86,653 $ 6,803 $ 4,109 $ 1,929 $ 23,514 $ — $ 285,616 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 500 $ — $ 500 Real Estate-Residential Secured for Business Purpose Risk Rating 1. Pass $ 72,383 $ 95,082 $ 141,285 $ 107,521 $ 51,058 $ 31,183 $ 31,532 $ — $ 530,044 2. Special Mention — — — — — — — — — 3. Substandard — — — — 586 44 — — 630 Total $ 72,383 $ 95,082 $ 141,285 $ 107,521 $ 51,644 $ 31,227 $ 31,532 $ — $ 530,674 Totals By Risk Rating 1. Pass $ 603,917 $ 748,527 $ 1,191,768 $ 822,597 $ 628,639 $ 604,474 $ 595,993 $ 415 $ 5,196,330 2. Special Mention 3,748 1,774 12,097 115 2,143 9,208 15,864 — 44,949 3. Substandard 251 3,360 10,325 13,833 2,997 7,910 22,461 — 61,137 Total $ 607,916 $ 753,661 $ 1,214,190 $ 836,545 $ 633,779 $ 621,592 $ 634,318 $ 415 $ 5,302,416 Total current period gross charge-offs $ 64 $ — $ — $ 70 $ — $ 35 $ 2,387 $ — $ 2,556 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 September 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 September 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 September 30, 2024 Real Estate-Residential Secured for Personal Purpose Payment Performance 1. Performing $ 15,359 $ 181,305 $ 356,799 $ 198,409 $ 123,725 $ 89,980 $ — $ 965,577 2. Nonperforming — — 144 38 2,839 964 — 3,985 Total $ 15,359 $ 181,305 $ 356,943 $ 198,447 $ 126,564 $ 90,944 $ — $ 969,562 Real Estate-Home Equity Secured for Personal Purpose Payment Performance 1. Performing $ 267 $ 364 $ 2,359 $ 417 $ 346 $ 1,390 $ 176,755 $ 181,898 2. Nonperforming — — — — — — 1,003 1,003 Total $ 267 $ 364 $ 2,359 $ 417 $ 346 $ 1,390 $ 177,758 $ 182,901 Loans to Individuals Payment Performance 1. Performing $ 1,952 $ 1,084 $ 560 $ 345 $ 40 $ 638 $ 22,132 $ 26,751 2. Nonperforming — — 14 — — 29 — 43 Total $ 1,952 $ 1,084 $ 574 $ 345 $ 40 $ 667 $ 22,132 $ 26,794 Current period gross charge-offs $ 153 $ 102 $ 31 $ 3 $ — $ 88 $ 353 $ 730 Lease Financings Payment Performance 1. Performing $ 68,208 $ 89,367 $ 52,820 $ 27,077 $ 8,621 $ 2,182 $ — $ 248,275 2. Nonperforming 145 246 16 358 — 21 — 786 Total $ 68,353 $ 89,613 $ 52,836 $ 27,435 $ 8,621 $ 2,203 $ — $ 249,061 Current period gross charge-offs $ — $ 92 $ 119 $ 203 $ 14 $ 7 $ — $ 435 Totals by Payment Performance 1. Performing $ 85,786 $ 272,120 $ 412,538 $ 226,248 $ 132,732 $ 94,190 $ 198,887 $ 1,422,501 2. Nonperforming 145 246 174 396 2,839 1,014 1,003 5,817 Total $ 85,931 $ 272,366 $ 412,712 $ 226,644 $ 135,571 $ 95,204 $ 199,890 $ 1,428,318 Total current period gross charge-offs $ 153 $ 194 $ 150 $ 206 $ 14 $ 95 $ 353 $ 1,165 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 September 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 nine months ended September 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 nine months ended September 30, 2024. (Dollars in thousands) Beginning balance Provision (reversal of provision) for credit losses Charge-offs Recoveries Ending balance Three Months Ended September 30, 2024 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 14,545 $ 544 $ (508) $ 108 $ 14,689 Real estate-commercial 45,978 688 (35) 3 46,634 Real estate-construction 6,153 (611) — — 5,542 Real estate-residential secured for business purpose 7,739 (89) — — 7,650 Real estate-residential secured for personal purpose 6,606 287 — — 6,893 Real estate-home equity secured for personal purpose 1,688 7 — — 1,695 Loans to individuals 348 304 (324) 12 340 Lease financings 2,688 (14) (83) 7 2,598 Total $ 85,745 $ 1,116 $ (950) $ 130 $ 86,041 Three Months Ended September 30, 2023 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 13,871 $ 979 $ (744) $ 30 $ 14,136 Real estate-commercial 44,757 519 — 3 45,279 Real estate-construction 5,433 298 — 1 5,732 Real estate-residential secured for business purpose 8,696 (44) — 4 8,656 Real estate-residential secured for personal purpose 5,588 254 — — 5,842 Real estate-home equity secured for personal purpose 1,296 (38) — 33 1,291 Loans to individuals 560 (61) (124) 12 387 Lease financings 2,508 190 (189) 5 2,514 Total $ 82,709 $ 2,097 $ (1,057) $ 88 $ 83,837 (Dollars in thousands) Beginning balance Provision (reversal of provision) for credit losses Charge-offs Recoveries Ending balance Nine Months Ended September 30, 2024 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 13,699 $ 2,807 $ (2,021) $ 204 $ 14,689 Real estate-commercial 45,849 810 (35) 10 46,634 Real estate-construction 6,543 (501) (500) — 5,542 Real estate-residential secured for business purpose 8,692 (1,277) — 235 7,650 Real estate-residential secured for personal purpose 6,349 410 — 134 6,893 Real estate-home equity secured for personal purpose 1,289 406 — — 1,695 Loans to individuals 392 609 (730) 69 340 Lease financings 2,574 425 (435) 34 2,598 Total $ 85,387 $ 3,689 $ (3,721) $ 686 $ 86,041 Nine Months Ended September 30, 2023 Allowance for credit losses, loans and leases: Commercial, financial and agricultural $ 16,920 $ 937 $ (3,891) $ 170 $ 14,136 Real estate-commercial 41,673 3,647 (50) 9 45,279 Real estate-construction 4,952 986 (207) 1 5,732 Real estate-residential secured for business purpose 7,054 1,417 — 185 8,656 Real estate-residential secured for personal purpose 3,685 2,157 — — 5,842 Real estate-home equity secured for personal purpose 1,287 6 (85) 83 1,291 Loans to individuals 351 314 (340) 62 387 Lease financings 3,082 (308) (314) 54 2,514 Total $ 79,004 $ 9,156 $ (4,887) $ 564 $ 83,837 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 September 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 September 30, 2024 Commercial, financial and agricultural $ 1,010 $ 13,679 $ 14,689 $ 2,703 $ 1,041,340 $ 1,044,043 Real estate-commercial 23 46,611 46,634 3,680 3,438,403 3,442,083 Real estate-construction — 5,542 5,542 2,799 282,817 285,616 Real estate-residential secured for business purpose — 7,650 7,650 630 530,044 530,674 Real estate-residential secured for personal purpose — 6,893 6,893 3,985 965,577 969,562 Real estate-home equity secured for personal purpose — 1,695 1,695 1,003 181,898 182,901 Loans to individuals — 340 340 15 26,779 26,794 Lease financings — 2,598 2,598 — 249,061 249,061 Total $ 1,033 $ 85,008 $ 86,041 $ 14,815 $ 6,715,919 $ 6,730,734 At September 30, 2023 Commercial, financial and agricultural $ 814 $ 13,322 $ 14,136 $ 1,754 $ 1,048,250 $ 1,050,004 Real estate-commercial 20 45,259 45,279 4,863 3,270,277 3,275,140 Real estate-construction — 5,732 5,732 — 427,561 427,561 Real estate-residential secured for business purpose — 8,656 8,656 936 515,535 516,471 Real estate-residential secured for personal purpose — 5,842 5,842 4,246 856,876 861,122 Real estate-home equity secured for personal purpose — 1,291 1,291 753 176,102 176,855 Loans to individuals — 387 387 — 27,331 27,331 Lease financings — 2,514 2,514 — 240,474 240,474 Total $ 834 $ 83,003 $ 83,837 $ 12,552 $ 6,562,406 $ 6,574,958 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 nine months ended September 30, 2024 and 2023. There were no modified loans to borrowers experiencing financial difficulty during the three months ended September 30, 2024. Term Extension Nine Months Ended September 30, 2024 Nine Months Ended September 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 % $ 23 — $ — — % $ — Real estate—commercial 2 3,212 0.09 1 1 1,948 0.06 — Total 3 $ 8,137 $ 24 1 $ 1,948 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial — — — — 1 $ 1,741 0.05 % $ — Real estate—construction 2 2,799 0.98 — — — — — Total 2 $ 2,799 $ — 1 $ 1,741 $ — Other-Than-Insignificant Payment Delay Nine Months Ended September 30, 2024 Nine Months Ended September 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 $ 7,167 0.69 % $ 32 — $ — — % $ — Total 2 $ 7,167 $ 32 — $ — $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Total — $ — $ — — $ — $ — *Amortized cost excludes $91 thousand and $15 thousand of accrued interest receivable on modified loans for the nine months ended September 30, 2024 and September 30, 2023, respectively. 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 nine months ended September 30, 2024 and 2023. There were no modified loans to borrowers experiencing financial difficulty during the three months ended September 30, 2024. Term Extension Other-Than-Insignificant Payment Delay (Dollars in thousands) No. of Financial Effect No. of Financial Effect Nine Months Ended September 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 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 — Nine Months Ended September 30, 2023 Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial 1 Added 5 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 1 Added 16 months to the life of the loan, which reduced monthly payment amount for the borrower. — Total 1 — The following presents, by class of loans, the amortized cost of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty that had a payment default subsequent to modification during the three and nine months ended September 30, 2024 and 2023 and were modified in the 12 months prior to that default. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Term Extension Term Extension (Dollars in thousands) Number Amortized Cost Basis Number Amortized Cost Basis Number Amortized Cost Basis Number Amortized Cost Basis Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—commercial 1 $ 1,900 — — 1 $ 1,900 — — Total 1 $ 1,900 — $ — 1 $ 1,900 — $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Total — $ — — $ — — $ — — $ — 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 September 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 $ 12,092 $ — $ — $ 12,092 Real estate—commercial 6,158 1,900 — 8,058 Total $ 18,250 $ 1,900 $ — $ 20,150 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Real estate—construction $ 2,799 $ — $ — $ 2,799 Total $ 2,799 $ — $ — $ 2,799 As of September 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 September 30, 2024 or December 31, 2023. (Dollars in thousands) At September 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 45 — Total $ 3,221 $ 5,147 The following presents foreclosed residential real estate property included in other real estate owned at September 30, 2024 or December 31, 2023. (Dollars in thousands) At September 30, 2024 At December 31, 2023 Foreclosed residential real estate $ 234 $ 79 Lease Financings The following presents the schedule of minimum lease payments receivable: (Dollars in thousands) At September 30, 2024 At December 31, 2023 2024 (excluding the nine months ended September 30, 2024) $ 25,254 $ 87,101 2025 88,976 74,002 2026 72,203 56,525 2027 51,904 36,944 2028 28,418 14,945 Thereafter 9,918 3,506 Total future minimum lease payments receivable 276,673 273,023 Plus: Unguaranteed residual 1,505 1,242 Plus: Initial direct costs 3,220 3,403 Less: Imputed interest (32,337) (30,485) Lease financings $ 249,061 $ 247,183 |