Non Purchased Loans | Non Purchased Loans (In Thousands, Except Number of Loans) For purposes of this Note 3, all references to “loans” mean non purchased loans excluding loans held for sale. The following is a summary of non purchased loans and leases as of the dates presented: June 30, December 31, 2021 Commercial, financial, agricultural (1) $ 1,405,642 $ 1,332,962 Lease financing 106,510 80,192 Real estate – construction: Residential 319,287 300,988 Commercial 801,830 798,914 Total real estate – construction 1,121,117 1,099,902 Real estate – 1-4 family mortgage: Primary 1,976,535 1,682,050 Home equity 443,045 423,108 Rental/investment 279,621 268,245 Land development 150,474 135,070 Total real estate – 1-4 family mortgage 2,849,675 2,508,473 Real estate – commercial mortgage: Owner-occupied 1,323,106 1,329,219 Non-owner occupied 2,674,678 2,446,370 Land development 112,887 110,395 Total real estate – commercial mortgage 4,110,671 3,885,984 Installment loans to individuals 103,661 107,565 Gross loans 9,697,276 9,015,078 Unearned income (5,160) (4,067) Loans, net of unearned income $ 9,692,116 $ 9,011,011 (1) Includes Paycheck Protection Program (“PPP”) loans of $7,383 and $58,391 as of June 30, 2022 and December 31, 2021, respectively. Past Due and Nonaccrual Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. For loans that are placed on nonaccrual status or charged-off, all interest accrued for the current year but not collected is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented: Accruing Loans Nonaccruing Loans 30-89 Days 90 Days Current Total 30-89 Days 90 Days Current Total Total June 30, 2022 Commercial, financial, agricultural $ 879 $ 165 $ 1,402,638 $ 1,403,682 $ — $ 1,863 $ 97 $ 1,960 $ 1,405,642 Lease financing — — 106,510 106,510 — — — — 106,510 Real estate – construction: Residential 152 — 319,135 319,287 — — — — 319,287 Commercial — — 801,830 801,830 — — — — 801,830 Total real estate – construction 152 — 1,120,965 1,121,117 — — — — 1,121,117 Real estate – 1-4 family mortgage: Primary 4,095 — 1,954,904 1,958,999 2,743 9,263 5,530 17,536 1,976,535 Home equity 1,166 — 440,508 441,674 99 674 598 1,371 443,045 Rental/investment 1,264 314 277,377 278,955 129 409 128 666 279,621 Land development 1,190 — 148,686 149,876 — 416 182 598 150,474 Total real estate – 1-4 family mortgage 7,715 314 2,821,475 2,829,504 2,971 10,762 6,438 20,171 2,849,675 Real estate – commercial mortgage: Owner-occupied 1,444 — 1,317,391 1,318,835 — 3,894 377 4,271 1,323,106 Non-owner occupied 2,305 — 2,666,808 2,669,113 — — 5,565 5,565 2,674,678 Land development 397 — 112,411 112,808 — 43 36 79 112,887 Total real estate – commercial mortgage 4,146 — 4,096,610 4,100,756 — 3,937 5,978 9,915 4,110,671 Installment loans to individuals 657 — 102,766 103,423 25 29 184 238 103,661 Unearned income — — (5,160) (5,160) — — — — (5,160) Loans, net of unearned income $ 13,549 $ 479 $ 9,645,804 $ 9,659,832 $ 2,996 $ 16,591 $ 12,697 $ 32,284 $ 9,692,116 Accruing Loans Nonaccruing Loans 30-89 Days 90 Days Current Total 30-89 Days 90 Days Current Total Total December 31, 2021 Commercial, financial, agricultural $ 3,325 $ 103 $ 1,323,774 $ 1,327,202 $ 1,669 $ 2,665 $ 1,426 $ 5,760 $ 1,332,962 Lease financing — — 80,181 80,181 — 11 — 11 80,192 Real estate – construction: Residential 1,077 — 299,911 300,988 — — — — 300,988 Commercial — — 798,914 798,914 — — — — 798,914 Total real estate – construction 1,077 — 1,098,825 1,099,902 — — — — 1,099,902 Real estate – 1-4 family mortgage: Primary 14,785 389 1,652,940 1,668,114 1,920 8,195 3,821 13,936 1,682,050 Home equity 1,468 — 420,695 422,163 182 546 217 945 423,108 Rental/investment 401 445 266,353 267,199 — 771 275 1,046 268,245 Land development 431 — 134,382 134,813 — 65 192 257 135,070 Total real estate – 1-4 family mortgage 17,085 834 2,474,370 2,492,289 2,102 9,577 4,505 16,184 2,508,473 Real estate – commercial mortgage: Owner-occupied 720 36 1,325,776 1,326,532 163 822 1,702 2,687 1,329,219 Non-owner occupied 260 89 2,440,513 2,440,862 — — 5,508 5,508 2,446,370 Land development 476 — 109,575 110,051 — 292 52 344 110,395 Total real estate – commercial mortgage 1,456 125 3,875,864 3,877,445 163 1,114 7,262 8,539 3,885,984 Installment loans to individuals 978 12 106,318 107,308 30 95 132 257 107,565 Unearned income — — (4,067) (4,067) — — — — (4,067) Loans, net of unearned income $ 23,921 $ 1,074 $ 8,955,265 $ 8,980,260 $ 3,964 $ 13,462 $ 13,325 $ 30,751 $ 9,011,011 Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There were no restructured loans contractually 90 days past due or more and still accruing at June 30, 2022 or June 30, 2021. The outstanding balance of restructured loans on nonaccrual status was $14,731 and $11,241 at June 30, 2022 and June 30, 2021, respectively. Restructured Loans Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest. The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end. Number of Pre- Post- Three months ended June 30, 2022 Real estate – 1-4 family mortgage: Primary 5 $ 844 $ 853 Real estate – commercial mortgage: Owner-occupied 1 246 246 Total 6 $ 1,090 $ 1,099 Three months ended June 30, 2021 Commercial, financial, agricultural 6 $ 5,228 $ 5,228 Real estate – 1-4 family mortgage: Primary 9 1,371 1,377 Total 15 $ 6,599 $ 6,605 Number of Pre- Post- Six months ended June 30, 2022 Real estate – 1-4 family mortgage: Primary 12 $ 1,710 $ 1,726 Real estate – commercial mortgage: Owner-occupied 1 246 246 Non-owner occupied 1 6,500 6,500 Total real estate – commercial mortgage 2 6,746 6,746 Total 14 $ 8,456 $ 8,472 Six months ended June 30, 2021 Commercial, financial, agricultural 6 $ 5,228 $ 5,228 Real estate – 1-4 family mortgage: Primary 12 1,803 1,812 Real estate – commercial mortgage: Non-owner occupied 1 837 810 Total 19 $ 7,868 $ 7,850 With respect to loans that were restructured during the six months ended June 30, 2022, $258 have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the six months ended June 30, 2021, none have subsequently defaulted as of the date of this report. Changes in the Company’s restructured loans are set forth in the table below: Number of Amortized Cost Totals at January 1, 2022 97 $ 14,650 Additional advances or loans with concessions 14 8,502 Reclassified as performing restructured loan 2 1,116 Reductions due to: Reclassified as nonperforming (9) (1,372) Paid in full (10) (632) Principal paydowns — (244) Totals at June 30, 2022 94 $ 22,020 The allowance for credit losses attributable to restructured loans was $926 and $612 at June 30, 2022 and June 30, 2021, respectively. The Company had no restructured loans with remaining availability under commitments to lend additional funds at June 30, 2022 and $305 remaining availability at June 30, 2021. Credit Quality For loans with a commercial purpose, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of commercial and commercial real estate secured loans. Loan grades range between 1 and 9, with 1 being loans with the least credit risk. Loans within the “Pass” grade (reserved for loans with a risk rating between 1 and 4C) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Special Mention” grade (those with a risk rating of 4E) represents a loan where a significant adverse risk-modifying action is anticipated in the near term and, if left uncorrected, could result in deterioration of the credit quality of the loan. Loans that migrate toward the “Substandard” grade (those with a risk rating between 5 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances. The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented: Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total June 30, 2022 Commercial, Financial, Agricultural $ 207,639 $ 268,284 $ 167,306 $ 71,193 $ 35,260 $ 16,060 $ 601,104 $ 2,405 $ 1,369,251 Pass 205,223 267,363 160,848 70,577 33,777 15,590 590,070 1,597 1,345,045 Special Mention 1,639 — — 178 264 — 7,724 — 9,805 Substandard 777 921 6,458 438 1,219 470 3,310 808 14,401 Lease Financing Receivables $ 37,223 $ 22,328 $ 20,736 $ 13,009 $ 5,928 $ 2,126 $ — $ — $ 101,350 Pass 37,223 22,328 20,736 13,009 5,928 1,703 — — 100,927 Special Mention — — — — — 423 — — 423 Substandard — — — — — — — — — Real Estate - Construction $ 323,530 $ 455,927 $ 160,222 $ 73,544 $ — $ — $ 7,545 $ — $ 1,020,768 Residential 133,008 82,497 2,203 — — — 1,230 — 218,938 Pass 133,008 82,344 2,203 — — — 1,230 — 218,785 Special Mention — 153 — — — — — — 153 Substandard — — — — — — — — — Commercial 190,522 373,430 158,019 73,544 — — 6,315 — 801,830 Pass 190,522 373,430 158,019 73,544 — — 6,315 — 801,830 Special Mention — — — — — — — — — Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Substandard — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 144,239 $ 164,601 $ 57,407 $ 36,119 $ 20,905 $ 19,562 $ 27,553 $ 651 $ 471,037 Primary 12,620 10,565 6,452 2,880 3,258 3,539 4,478 — 43,792 Pass 12,413 10,536 6,452 2,865 3,258 3,533 4,468 — 43,525 Special Mention — — — — — — — — — Substandard 207 29 — 15 — 6 10 — 267 Home Equity 95 1,311 — 40 125 — 14,209 9 15,789 Pass 95 1,311 — 40 125 — 14,209 9 15,789 Special Mention — — — — — — — — — Substandard — — — — — — — — — Rental/Investment 74,104 91,864 46,599 24,955 17,371 15,870 7,999 642 279,404 Pass 74,040 91,689 46,481 23,938 16,951 15,314 7,999 642 277,054 Special Mention 44 — — — — 35 — — 79 Substandard 20 175 118 1,017 420 521 — — 2,271 Land Development 57,420 60,861 4,356 8,244 151 153 867 — 132,052 Pass 56,419 60,861 4,068 8,222 151 153 867 — 130,741 Special Mention 1,001 — — — — — — — 1,001 Substandard — — 288 22 — — — — 310 Real Estate - Commercial Mortgage $ 759,581 $ 1,057,568 $ 787,076 $ 604,445 $ 274,382 $ 485,653 $ 113,273 $ 16,281 $ 4,098,259 Owner-Occupied 190,595 300,801 271,836 191,148 133,995 191,753 38,899 3,945 1,322,972 Pass 190,236 297,814 269,517 189,576 132,265 178,778 38,899 3,945 1,301,030 Special Mention — 1,174 1,039 337 — — — — 2,550 Substandard 359 1,813 1,280 1,235 1,730 12,975 — — 19,392 Non-Owner Occupied 539,925 721,677 503,605 404,190 135,480 291,376 66,059 12,336 2,674,648 Pass 539,678 712,391 503,605 390,890 119,856 219,436 66,059 12,336 2,564,251 Special Mention — — — 11,291 15,624 24,459 — — 51,374 Substandard 247 9,286 — 2,009 — 47,481 — — 59,023 Land Development 29,061 35,090 11,635 9,107 4,907 2,524 8,315 — 100,639 Pass 29,061 35,048 11,307 9,107 4,829 2,524 8,315 — 100,191 Special Mention — 42 — — — — — — 42 Substandard — — 328 — 78 — — — 406 Installment loans to individuals $ — $ — $ — $ 32 $ — $ — $ — $ — $ 32 Pass — — — 32 — — — — 32 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ 1,472,212 $ 1,968,708 $ 1,192,747 $ 798,342 $ 336,475 $ 523,401 $ 749,475 $ 19,337 $ 7,060,697 Pass 1,467,918 1,955,115 1,183,236 781,800 317,140 437,031 738,431 18,529 6,899,200 Special Mention 2,684 1,369 1,039 11,806 15,888 24,917 7,724 — 65,427 Substandard 1,610 12,224 8,472 4,736 3,447 61,453 3,320 808 96,070 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total December 31, 2021 Commercial, Financial, Agricultural $ 300,748 $ 245,940 $ 122,350 $ 44,533 $ 15,384 $ 11,103 $ 557,628 $ 2,757 $ 1,300,443 Pass 299,731 245,657 120,102 43,042 14,603 8,605 553,541 2,002 1,287,283 Special Mention — 136 1,798 281 605 1,196 651 — 4,667 Substandard 1,017 147 450 1,210 176 1,302 3,436 755 8,493 Real Estate - Construction $ 461,370 $ 371,694 $ 174,369 $ 14,813 $ — $ — $ 3,769 $ 2,428 $ 1,028,443 Residential 210,734 12,598 — — — — 3,769 2,428 229,529 Pass 210,734 12,598 — — — — 3,769 2,428 229,529 Special Mention — — — — — — — — — Substandard — — — — — — — — — Commercial 250,636 359,096 174,369 14,813 — — — — 798,914 Pass 250,636 359,096 174,369 14,813 — — — — 798,914 Special Mention — — — — — — — — — Substandard — — — — — — — — — Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Real Estate - 1-4 Family Mortgage $ 205,137 $ 83,038 $ 60,240 $ 30,044 $ 28,340 $ 8,846 $ 25,534 $ 941 $ 442,120 Primary 15,599 7,698 3,662 5,985 4,150 1,066 4,727 — 42,887 Pass 15,599 7,698 3,496 5,985 4,066 1,057 4,716 — 42,617 Special Mention — — — — — — — — — Substandard — — 166 — 84 9 11 — 270 Home Equity 1,318 — 42 131 — — 13,615 10 15,116 Pass 1,318 — 42 131 — — 13,615 10 15,116 Special Mention — — — — — — — — — Substandard — — — — — — — — — Rental/Investment 111,006 61,801 33,734 23,520 23,890 7,469 5,554 931 267,905 Pass 110,987 60,855 32,733 23,246 23,708 7,098 5,554 931 265,112 Special Mention — 249 — — — — — — 249 Substandard 19 697 1,001 274 182 371 — — 2,544 Land Development 77,214 13,539 22,802 408 300 311 1,638 — 116,212 Pass 74,818 13,539 22,769 408 300 311 1,638 — 113,783 Special Mention 2,396 — — — — — — — 2,396 Substandard — — 33 — — — — — 33 Real Estate - Commercial Mortgage $ 1,168,118 $ 836,549 $ 680,506 $ 344,089 $ 298,644 $ 376,652 $ 147,446 $ 21,644 $ 3,873,648 Owner-Occupied 312,031 305,686 220,057 164,345 140,265 117,767 59,126 9,748 1,329,025 Pass 310,736 304,555 218,447 161,521 134,410 109,577 59,126 8,036 1,306,408 Special Mention 1,210 1,131 — — 1,733 328 — 1,712 6,114 Substandard 85 — 1,610 2,824 4,122 7,862 — — 16,503 Non-Owner Occupied 809,784 511,803 449,409 173,123 155,175 256,133 79,016 11,896 2,446,339 Pass 800,348 503,009 436,062 165,843 102,446 242,665 79,016 11,896 2,341,285 Special Mention 9,235 8,794 11,356 7,280 33,176 8,024 — — 77,865 Substandard 201 — 1,991 — 19,553 5,444 — — 27,189 Land Development 46,303 19,060 11,040 6,621 3,204 2,752 9,304 — 98,284 Pass 46,034 17,030 11,040 6,569 3,204 2,752 9,304 — 95,933 Special Mention 44 — — — — — — — 44 Substandard 225 2,030 — 52 — — — — 2,307 Installment loans to individuals $ — $ — $ 42 $ — $ — $ — $ — $ — $ 42 Pass — — 42 — — — — — 42 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ 2,135,373 $ 1,537,221 $ 1,037,507 $ 433,479 $ 342,368 $ 396,601 $ 734,377 $ 27,770 $ 6,644,696 Pass 2,120,941 1,524,037 1,019,102 421,558 282,737 372,065 730,279 25,303 6,496,022 Special Mention 12,885 10,310 13,154 7,561 35,514 9,548 651 1,712 91,335 Substandard 1,547 2,874 5,251 4,360 24,117 14,988 3,447 755 57,339 The following tables present the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented: Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total June 30, 2022 Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 10,281 $ 26,110 $ — $ 36,391 Performing Loans — — — — — 10,281 26,110 — 36,391 Non-Performing Loans — — — — — — — — — Real Estate - Construction $ 18,906 $ 75,677 $ 3,939 $ 1,827 $ — $ — $ — $ — $ 100,349 Residential 18,906 75,677 3,939 1,827 — — — — 100,349 Performing Loans 18,906 75,677 3,939 1,827 — — — — 100,349 Non-Performing Loans — — — — — — — — — Commercial — — — — — — — — — Performing Loans — — — — — — — — — Non-Performing Loans — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 439,743 $ 554,701 $ 374,439 $ 169,810 $ 131,844 $ 281,734 $ 423,690 $ 2,677 $ 2,378,638 Primary 433,612 546,647 372,398 169,096 130,391 280,599 — — 1,932,743 Performing Loans 433,035 545,282 370,548 166,229 124,883 275,241 — — 1,915,218 Non-Performing Loans 577 1,365 1,850 2,867 5,508 5,358 — — 17,525 Home Equity 110 111 — 30 223 415 423,690 2,677 427,256 Performing Loans 110 111 — 30 223 345 422,938 2,128 425,885 Non-Performing Loans — — — — — 70 752 549 1,371 Rental/Investment — — — — — 217 — — 217 Performing Loans — — — — — 166 — — 166 Non-Performing Loans — — — — — 51 — — 51 Land Development 6,021 7,943 2,041 684 1,230 503 — — 18,422 Performing Loans 6,021 7,920 1,952 660 1,230 351 — — 18,134 Non-Performing Loans — 23 89 24 — 152 — — 288 Real Estate - Commercial Mortgage $ 2,527 $ 4,371 $ 3,012 $ 1,489 $ 719 $ 294 $ — $ — $ 12,412 Owner-Occupied — — 134 — — — — — 134 Performing Loans — — 134 — — — — — 134 Non-Performing Loans — — — — — — — — — Non-Owner Occupied — — 30 — — — — — 30 Performing Loans — — 30 — — — — — 30 Non-Performing Loans — — — — — — — — — Land Development 2,527 4,371 2,848 1,489 719 294 — — 12,248 Performing Loans 2,527 4,371 2,824 1,470 719 294 — — 12,205 Non-Performing Loans — — 24 19 — — — — 43 Installment loans to individuals $ 26,530 $ 26,556 $ 9,704 $ 17,784 $ 6,182 $ 2,849 $ 13,980 $ 44 $ 103,629 Performing Loans 26,421 26,554 9,678 17,742 6,182 2,800 13,977 38 103,392 Non-Performing Loans 109 2 26 42 — 49 3 6 237 Total loans not subject to risk rating $ 487,706 $ 661,305 $ 391,094 $ 190,910 $ 138,745 $ 295,158 $ 463,780 $ 2,721 $ 2,631,419 Performing Loans 487,020 659,915 389,105 187,958 133,237 289,478 463,025 2,166 2,611,904 Non-Performing Loans 686 1,390 1,989 2,952 5,508 5,680 755 555 19,515 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total December 31, 2021 Commercial, Financial, Agricultural $ 71 $ — $ — $ 1 $ — $ 8,983 $ 23,464 $ — $ 32,519 Performing Loans 71 — — 1 — 8,983 23,464 — 32,519 Non-Performing Loans — — — — — — — — — Lease Financing Receivables $ 26,301 $ 23,270 $ 15,504 $ 7,713 $ 2,169 $ 1,168 $ — $ — $ 76,125 Performing Loans 26,301 23,270 15,504 7,713 2,167 1,159 — — 76,114 Non-Performing Loans — — — — 2 9 — — 11 Real Estate - Construction $ 57,283 $ 12,561 $ 1,615 $ — $ — $ — $ — $ — $ 71,459 Residential 57,283 12,561 1,615 — — — — — 71,459 Performing Loans 57,283 12,561 1,615 — — — — — 71,459 Non-Performing Loans — — — — — — — — — Commercial — — — — — — — — — Performing Loans — — — — — — — — — Non-Performing Loans — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 554,483 $ 419,252 $ 205,014 $ 155,535 $ 117,619 $ 207,381 $ 404,293 $ 2,776 $ 2,066,353 Primary 542,659 415,863 203,739 153,717 116,689 206,496 — — 1,639,163 Performing Loans 542,053 414,931 201,273 148,649 114,669 203,416 — — 1,624,991 Non-Performing Loans 606 932 2,466 5,068 2,020 3,080 — — 14,172 Home Equity 111 — 79 225 — 508 404,293 2,776 407,992 Performing Loans 111 — 79 225 — 435 403,598 2,599 407,047 Non-Performing Loans — — — — — 73 695 177 945 Rental/Investment — — 99 — 23 218 — — 340 Performing Loans — — 99 — 23 164 — — 286 Non-Performing Loans — — — — — 54 — — 54 Land Development 11,713 3,389 1,097 1,593 907 159 — — 18,858 Performing Loans 11,688 3,298 1,065 1,593 832 159 — — 18,635 Non-Performing Loans 25 91 32 — 75 — — — 223 Real Estate - Commercial Mortgage $ 5,265 $ 3,584 $ 2,082 $ 800 $ 468 $ 137 $ — $ — $ 12,336 Owner-Occupied — 136 58 — — — — — 194 Performing Loans — 136 58 — — — — — 194 Non-Performing Loans — — — — — — — — — Non-Owner Occupied — 31 — — — — — — 31 Performing Loans — 31 — — — — — — 31 Non-Performing Loans — — — — — — — — — Land Development 5,265 3,417 2,024 800 468 137 — — 12,111 Performing Loans 5,265 3,417 2,008 800 468 86 — — 12,044 Non-Performing Loans — — 16 — — 51 — — 67 Installment loans to individuals $ 44,302 $ 15,436 $ 23,114 $ 7,717 $ 1,985 $ 1,917 $ 13,016 $ 36 $ 107,523 Performing Loans 44,254 15,360 23,035 7,704 1,958 1,890 13,016 36 107,253 Non-Performing Loans 48 76 79 13 27 27 — — 270 Total loans not subject to risk rating $ 687,705 $ 474,103 $ 247,329 $ 171,766 $ 122,241 $ 219,586 $ 440,773 $ 2,812 $ 2,366,315 Performing Loans 687,026 473,004 244,736 166,685 120,117 216,292 440,078 2,635 2,350,573 Non-Performing Loans 679 1,099 2,593 5,081 2,124 3,294 695 177 15,742 (In Thousands, Except Number of Loans) For purposes of this Note 4, all references to “loans” mean purchased loans excluding loans held for sale. The following is a summary of purchased loans as of the dates presented: June 30, December 31, 2021 Commercial, financial, agricultural $ 91,630 $ 90,308 Real estate – construction: Residential 1,254 1,287 Commercial 3,992 3,707 Total real estate – construction 5,246 4,994 Real estate – 1-4 family mortgage: Primary 108,543 134,070 Home equity 45,003 51,496 Rental/investment 17,915 20,229 Land development 8,947 9,978 Total real estate – 1-4 family mortgage 180,408 215,773 Real estate – commercial mortgage: Owner-occupied 210,086 234,132 Non-owner occupied 382,848 410,577 Land development 13,908 18,344 Total real estate – commercial mortgage 606,842 663,053 Installment loans to individuals 27,502 35,775 Loans $ 911,628 $ 1,009,903 Past Due and Nonaccrual Loans The Company’s policies with respect to placing loans on nonaccrual status or charging off loans, and its accounting for interest on any such loans, are described above in Note 3, “Non Purchased Loans.” The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented: Accruing Loans Nonaccruing Loans 30-89 Days 90 Days Current Total 30-89 Days 90 Days Current Total Total June 30, 2022 Commercial, financial, agricultural $ 22 $ — $ 87,534 $ 87,556 $ — $ 2,307 $ 1,767 $ 4,074 $ 91,630 Real estate – construction: Residential — — 1,254 1,254 — — — — 1,254 Commercial — — 3,992 3,992 — — — — 3,992 Total real estate – construction — — 5,246 5,246 — — — — 5,246 Real estate – 1-4 family mortgage: Primary 617 — 103,022 103,639 393 2,018 2,493 4,904 108,543 Home equity 126 — 44,166 44,292 — 155 556 711 45,003 Rental/investment 109 — 17,752 17,861 24 — 30 54 17,915 Land development 69 — 8,878 8,947 — — — — 8,947 Total real estate – 1-4 family mortgage 921 — 173,818 174,739 417 2,173 3,079 5,669 180,408 Real estate – commercial mortgage: Owner-occupied 1,556 36 206,810 208,402 — 136 1,548 1,684 210,086 Non-owner occupied — 59 382,783 382,842 — — 6 6 382,848 Land development 267 — 13,534 13,801 70 37 — 107 13,908 Total real estate – commercial mortgage 1,823 95 603,127 605,045 70 173 1,554 1,797 606,842 Installment loans to individuals 595 43 26,791 27,429 4 1 68 73 27,502 Loans, net of unearned income $ 3,361 $ 138 $ 896,516 $ 900,015 $ 491 $ 4,654 $ 6,468 $ 11,613 $ 911,628 Accruing Loans Nonaccruing Loans 30-89 Days 90 Days Current Total 30-89 Days 90 Days Current Total Total December 31, 2021 Commercial, financial, agricultural $ 122 $ — $ 82,918 $ 83,040 $ 42 $ 1,618 $ 5,608 $ 7,268 $ 90,308 Real estate – construction: Residential — — 1,287 1,287 — — — — 1,287 Commercial — — 3,707 3,707 — — — — 3,707 Total real estate – construction — — 4,994 4,994 — — — — 4,994 Real estate – 1-4 family mortgage: Primary 1,042 36 127,820 128,898 257 2,225 2,690 5,172 134,070 Home equity 149 — 50,573 50,722 — 373 401 774 51,496 Rental/investment 20 — 20,105 20,125 26 — 78 104 20,229 Land development — — 9,978 9,978 — — — — 9,978 Total real estate – 1-4 family mortgage 1,211 36 208,476 209,723 283 2,598 3,169 6,050 215,773 Real estate – commercial mortgage: Owner-occupied 1,511 323 230,305 232,139 — 289 1,704 1,993 234,132 Non-owner occupied — — 407,639 407,639 — — 2,938 2,938 410,577 Land development — — 18,218 18,218 — — 126 126 18,344 Total real estate – commercial mortgage 1,511 323 656,162 657,996 — 289 4,768 5,057 663,053 Installment loans to individuals 839 8 34,690 35,537 15 11 212 238 35,775 Loans, net of unearned income $ 3,683 $ 367 $ 987,240 $ 991,290 $ 340 $ 4,516 $ 13,757 $ 18,613 $ 1,009,903 There were no restructured loans contractually 90 days past due or more and still accruing at June 30, 2022. There was one restructured loan in the amount of $37 contractually 90 days past due or more and still accruing at June 30, 2021. The outstanding balance of restructured loans on nonaccrual status was $2,014 and $18,279 at June 30, 2022 and June 30, 2021, respectively. Restructured Loans An explanation of what constitutes a “restructured loan,” and management’s analysis in determining whether to restructure a loan, are described above in Note 3, “Non Purchased Loans.” The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end. No loans were restructured during the three months ended June 30, 2022. Number of Pre- Post- Three months ended June 30, 2021 Real estate – 1-4 family mortgage: Primary 1 $ 862 $ 862 Total 1 $ 862 $ 862 Number of Pre- Post- Six months ended June 30, 2022 Real estate – 1-4 family mortgage: Land development 3 $ 98 $ 94 Six months ended June 30, 2021 Commercial, financial, agricultural 1 $ 135 $ 135 Real estate – 1-4 family mortgage: Primary 1 862 862 Total 2 $ 997 $ 997 With respect to loans that were restructured during the six months ended June 30, 2022 and June 30, 2021, none have subsequently defaulted as of the date of this report. Changes in the Company’s restructured loans are set forth in the table below: Number of Recorded Totals at January 1, 2022 38 $ 5,609 Additional advances or loans with concessions 3 197 Reclassified as performing restructured loan 8 4,064 Reductions due to: Reclassified to nonperforming loans (4) (128) Paid in full (3) (1,634) Principal paydowns — (103) Totals at June 30, 2022 42 $ 8,005 The allowance for credit losses attributable to restructured loans was $1,176 and $127 at June 30, 2022 and June 30, 2021, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2022, as compared to $1 in remaining availability at June 30, 2021. Credit Quality A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans.” The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented: Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total June 30, 2022 Commercial, Financial, Agricultural $ — $ — $ — $ 1,004 $ 6,092 $ 29,780 $ 53,839 $ 915 $ 91,630 Pass — — — 1,004 5,538 22,102 52,367 548 81,559 Special Mention — — — — 231 — — — 231 Substandard — — — — 323 7,678 1,472 367 9,840 Real Estate - Construction $ — $ — $ — $ — $ 570 $ 4,676 $ — $ — $ 5,246 Residential — — — — 570 684 — — 1,254 Pass — — — — 570 684 — — 1,254 Special Mention — — — — — — — — — Substandard — — — — — — — — — Commercial — — — — — 3,992 — — 3,992 Pass — — — — — 3,992 — — 3,992 Special Mention — — — — — — — — — Substandard — — — — — — — — — Real Estate - 1-4 Family Mortgage $ — $ — $ — $ 147 $ 8,790 $ 28,434 $ 694 $ 170 $ 38,235 Primary — — — 34 2,244 8,549 154 — 10,981 Pass — — — 34 2,244 8,013 154 — 10,445 Special Mention — — — — — 55 — — 55 Substandard — — — — — 481 — — 481 Home Equity — — — — — 34 413 170 617 Pass — — — — — 34 413 — 447 Special Mention — — — — — — — — — Substandard — — — — — — — 170 170 Rental/Investment — — — 113 312 17,363 127 — 17,915 Pass — — — 113 312 16,605 — — 17,030 Special Mention — — — — — — — — — Substandard — — — — — 758 127 — 885 Land Development — — — — 6,234 2,488 — — 8,722 Pass — — — — 6,234 1,175 — — 7,409 Special Mention — — — — — — — — — Substandard — — — — — 1,313 — — 1,313 Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Real Estate - Commercial Mortgage $ — $ — $ — $ 320 $ 46,274 $ 543,294 $ 6,509 $ 9,804 $ 606,201 Owner-Occupied — — — — 10,843 194,695 4,548 — 210,086 Pass — — — — 10,843 179,855 4,548 — 195,246 Special Mention — — — — — 364 — — 364 Substandard — — — — — 14,476 — — 14,476 Non-Owner Occupied — — — 320 35,398 335,740 1,586 9,804 382,848 Pass — — — 320 19,018 309,425 1,586 — 330,349 Special Mention — — — — 16,374 — — — 16,374 Substandard — — — — 6 26,315 — 9,804 36,125 Land Development — — — — 33 12,859 375 — 13,267 Pass — — — — 33 7,122 375 — 7,530 Special Mention — — — — — 5,025 — — 5,025 Substandard — — — — — 712 — — 712 Installment loans to individuals $ — $ — $ — $ — $ — $ — $ — $ — $ — Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ — $ — $ — $ 1,471 $ 61,726 $ 606,184 $ 61,042 $ 10,889 $ 741,312 Pass — — — 1,471 44,792 549,007 59,443 548 655,261 Special Mention — — — — 16,605 5,444 — — 22,049 Substandard — — — — 329 51,733 1,599 10,341 64,002 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total December 31, 2021 Commercial, Financial, Agricultural $ — $ — $ 646 $ 12,199 $ 12,247 $ 25,562 $ 38,328 $ 1,326 $ 90,308 Pass — — 646 11,612 8,918 18,877 37,555 899 78,507 Special Mention — — — 246 — — — — 246 Substandard — — — 341 3,329 6,685 773 427 11,555 Real Estate - Construction $ — $ — $ — $ 601 $ — $ 4,393 $ — $ — $ 4,994 Residential — — — 601 — 686 — — 1,287 Pass — — — 601 — 686 — — 1,287 Special Mention — — — — — — — — — Substandard — — — — — — — — — Commercial — — — — — 3,707 — — 3,707 Pass — — — — — 3,707 — — 3,707 Special Mention — — — — — — — — — Substandard — — — — — — — — — Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Real Estate - 1-4 Family Mortgage $ — $ — $ 152 $ 10,151 $ 2,781 $ 32,841 $ 1,476 $ 201 $ 47,602 Primary — — 34 2,485 1,367 12,336 161 — 16,383 Pass — — 34 2,485 1,367 9,408 161 — 13,455 Special Mention — — — — — 59 — — 59 Substandard — — — — — 2,869 — — 2,869 Home Equity — — — — — 42 1,087 201 1,330 Pass — — — — — 42 717 — 759 Special Mention — — — — — — — — — Substandard — — — — — — 370 201 571 Rental/Investment — — 118 804 1,273 17,806 228 — 20,229 Pass — — 118 804 1,273 17,035 77 — 19,307 Special Mention — — — — — 38 — — 38 Substandard — — — — — 733 151 — 884 Land Development — — — 6,862 141 2,657 — — 9,660 Pass — — — 6,862 111 1,249 — — 8,222 Special Mention — — — — — — — — — Substandard — — — — 30 1,408 — — 1,438 Real Estate - Commercial Mortgage $ — $ — $ 325 $ 50,519 $ 123,254 $ 467,983 $ 5,912 $ 14,324 $ 662,317 Owner-Occupied — — — 13,344 17,621 200,111 3,056 — 234,132 Pass — — — 13,344 13,888 182,779 3,056 — 213,067 Special Mention — — — — 1,553 394 — — 1,947 Substandard — — — — 2,180 16,938 — — 19,118 Non-Owner O |