Annual report [Section 13 and 15(d), not S-K Item 405]

Note 3 - Loans

v3.25.0.1
Note 3 - Loans
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3.

LOANS

 

The loan portfolio is classified based on the underlying collateral utilized to secure each loan for financial reporting purposes. This classification is consistent with the Quarterly Report of Condition and Income filed by ServisFirst Bank with the Federal Deposit Insurance Corporation (“FDIC”).

 

Commercial, financial and agricultural - Includes loans to business enterprises issued for commercial, industrial, agricultural production and/or other professional purposes. These loans are generally secured by equipment, inventory, and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

 

Real estate construction – Includes loans secured by real estate to finance land development or the construction of industrial, commercial or residential buildings. Repayment is dependent upon the completion and eventual sale, refinance or operation of the related real estate project.

 

Owner-occupied commercial real estate mortgage – Includes loans secured by nonresidential properties for which the primary source of repayment is the cash flow from the ongoing operations conducted by the party that owns the property.

 

1-4 family real estate mortgage – Includes loans secured by residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower.

 

Non-owner occupied commercial real estate mortgage – Includes loans secured by nonowner-occupied properties, including office buildings, industrial buildings, warehouses, retail buildings, and multifamily residential properties. Repayment is primarily dependent on income generated from the underlying collateral.

 

Consumer – Includes loans to individuals not secured by real estate. Repayment is dependent upon the personal cash flow of the borrower.

 

The composition of loans at December 31, 2024 and 2023 is summarized as follows:

 

   

December 31,

 
   

2024

   

2023

 
                 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 2,869,894     $ 2,823,986  

Real estate - construction

    1,489,306       1,519,619  

Real estate - mortgage:

               

Owner-occupied commercial

    2,547,143       2,257,163  

1-4 family mortgage

    1,444,623       1,249,938  

Non-owner occupied commercial

    4,181,243       3,744,346  

Subtotal: Real estate mortgage

    8,173,009       7,251,447  

Consumer

    73,627       63,777  

Total Loans

    12,605,836       11,658,829  

Less: Allowance for credit losses

    (164,458 )     (153,317 )

Net Loans

  $ 12,441,378     $ 11,505,512  

 

Changes in the ACL during the years ended December 31, 2024, 2023 and 2022 are as follows:

 

 

   

Years Ended December 31,

 
   

2024

   

2023

   

2022

 
                         
   

(In Thousands)

 

Balance, beginning of year

  $ 153,317     $ 146,297     $ 116,660  

Loans charged off

    (13,684 )     (14,581 )     (10,137 )

Recoveries

    3,272       2,886       2,167  

Provision for credit losses

    21,553       18,715       37,607  

Balance, end of year

  $ 164,458     $ 153,317     $ 146,297  

 

GAAP requires a current expected credit losses (“CECL”) methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology, the ACL is measured on a collective basis for pools of loans with similar risk characteristics. For loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan segments collectively evaluated, losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period losses are reverted to long-term historical averages. The estimated loan losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses.

 

The Company uses the DCF method to estimate ACL for all loan pools except for commercial and industrial (“C&I”) revolving lines of credit and credit cards. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment rate as a loss driver. The Company also utilizes and forecasts gross domestic product (“GDP”) growth as a second loss driver for its agricultural and consumer loan pools. Consistent forecasts of the loss drivers are used across the loan segments. At December 31, 2024 and 2023, the Company utilized a reasonable and supportable forecast period of twelve months followed by a six-month straight-line reversion to long-term averages. The Company leveraged economic projections from reputable and independent sources to inform its loss driver forecasts. At December 31, 2024, the Company expects the national unemployment rate to rise during the forecast period with a declining national GDP growth rate, with both economic indicators showing improvement when compared to the forecast at December 31, 2023.

 

The Company uses a loss-rate method to estimate expected credit losses for its C&I revolving lines of credit and a remaining life methodology on credit card pools. The C&I revolving lines of credit pool incorporates a probability of default (“PD”) and loss given default (“LGD”) modeling approach. This approach involves estimating the pool average life and then using historical correlations of default and loss experience over time to calculate the lifetime PD and LGD. These two inputs are then applied to the outstanding pool balance. The credit card pool incorporates a remaining life modeling approach, which utilizes an attrition-based method to estimate the remaining life of the pool. A quarterly average loss rate is then calculated using the Company’s historical loss data. The model reduces the pool balance quarterly on a straight-line basis over the estimated life of the pool. The quarterly loss rate is multiplied by the outstanding balance at each period-end resulting in an estimated loss for each quarter. The sum of estimated loss for all quarters is the total calculated reserve for the pool. Management has applied the loss-rate method to C&I lines of credit and to credit cards due to their generally short-term nature. An expected loss ratio is applied based on internal and peer historical losses.

 

Each loan pool is adjusted for qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation. The Company considers factors that are relevant within the qualitative framework, which include the following: lending policy, changes in nature and volume of loans, staff experience, changes in volume and trends of problem loans, concentration risk, trends in underlying collateral values, external factors, quality of loan review system and other economic conditions.

 

Inherent risks in the loan portfolio will differ based on type of loan. Specific risk characteristics by loan portfolio segment are listed below:

 

Commercial and industrial loans include risks associated with borrower’s cash flow, debt service coverage and management’s expertise. These loans are subject to the risk that the Company may have difficulty converting collateral to a liquid asset if necessary, as well as risks associated with degree of specialization, mobility and general collectability in a default situation. These commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates.

 

Real estate construction loans include risks associated with the borrower’s credit-worthiness, contractor’s qualifications, borrower and contractor performance, and the overall risk and complexity of the proposed project. Construction lending is also subject to risks associated with sub-market dynamics, including population, employment trends and household income. During times of economic stress, this type of loan has typically had a greater degree of risk than other loan types.

 

Real estate mortgage loans consist of loans secured by commercial and residential real estate. Commercial real estate lending is dependent upon successful management, marketing and expense supervision necessary to maintain the property. Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy. Also, commercial real estate loans typically involve relatively large loan balances to a single borrower. Residential real estate lending risks are generally less significant than those of other loans. Real estate lending risks include fluctuations in the value of real estate, bankruptcies, economic downturn and customer financial problems.

 

Consumer loans carry a moderate degree of risk compared to other loans. They are generally more risky than traditional residential real estate loans but less risky than commercial loans. Risk of default is usually determined by the well-being of the local economies. During times of economic stress, there is usually some level of job loss both nationally and locally, which directly affects the ability of the consumer to repay debt.

 

Changes in the allowance for credit losses, segregated by loan type, during the years ended December 31, 2024 and 2023, respectively, are as follows:

 

   

Commercial,

           

Owner-

           

Non-owner

                 
   

financial and

   

Real estate -

   

occupied

   

1-4 family

   

occupied

                 
   

agricultural

   

construction

   

commercial

   

mortgage

   

commercial

   

Consumer

   

Total

 
   

(In Thousands)

 
   

Year Ended December 31, 2024

 

Allowance for credit losses:

                                                       

Balance at January 1, 2024

  $ 52,121     $ 44,658     $ 17,702     $ 12,029     $ 25,395     $ 1,412     $ 153,317  

Charge-offs

    (12,115 )     -       (237 )     (761 )     -       (571 )     (13,684 )

Recoveries

    3,021       8       29       2       -       212       3,272  

Provision for credit losses on loans

    12,303       (6,069 )     4,808       2,826       5,933       1,752       21,553  

Balance at December 31, 2024

  $ 55,330     $ 38,597     $ 22,302     $ 14,096     $ 31,328     $ 2,805     $ 164,458  
                                                         
   

Year Ended December 31, 2023

 

Allowance for credit losses:

                                                       

Balance at January 1, 2023

  $ 42,830     $ 42,889     $ 16,843     $ 12,219     $ 29,590     $ 1,926     $ 146,297  

Charge-offs

    (13,229 )     (108 )     (117 )     (54 )     -       (1,073 )     (14,581 )

Recoveries

    2,800       3       -       -       -       83       2,886  

Provision

    19,720       1,874       976       (136 )     (4,195 )     476       18,715  

Balance at December 31, 2023

  $ 52,121     $ 44,658     $ 17,702     $ 12,029     $ 25,395     $ 1,412     $ 153,317  
                                                         
   

Year Ended December 31, 2022

 

Allowance for credit losses:

                                                       

Balance at January 1, 2022

  $ 41,869     $ 26,994     $ 16,204     $ 6,978     $ 22,647     $ 1,968     $ 116,660  

Charge-offs

    (9,256 )     -       (170 )     (51 )     -       (660 )     (10,137 )

Recoveries

    2,012       -       -       -       -       155       2,167  

Provision

    8,205       15,895       809       5,292       6,943       463       37,607  

Balance at December 31, 2022

  $ 42,830     $ 42,889     $ 16,843     $ 12,219     $ 29,590     $ 1,926     $ 146,297  

 

Allocation of a part of the ACL to one loan type does not preclude its ability to absorb losses in other loan types. We maintain an ACL for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a drawdown on the commitment.  The ACL on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these credit losses is recorded as a component of other expense.  The allowance for credit losses on unfunded commitments was $608,000 and $575,000 at December 31, 2024 and 2023, respectively. The provision expense for unfunded commitments was $32,000 for the year ended December 31, 2024 and was $0 for the year ended December 31, 2023.

 

The credit quality of the loan portfolio is determined no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for current economic conditions defined as follows:

 

 

Pass – loans that are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

 

 

Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

 

 

Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the Company will sustain some loss if the weaknesses are not corrected.

 

 

Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

 

The tables below presents loan balances classified by credit quality indicator, loan type and based on year of origination as of December 31, 2024 and 2023:

 

December 31, 2024

 

2024

   

2023

   

2022

   

2021

   

2020

   

Prior

   

Revolving

   

Revolving lines of credit converted to term loans

   

Total

 
   

(In Thousands)

 

Commercial, financial, and agricultural

                                                                       

Pass

  $ 529,002     $ 171,139     $ 331,476     $ 273,304     $ 120,088     $ 195,011     $ 1,121,196     $ 248     $ 2,741,464  

Special Mention

    1,767       666       12,260       2,442       3,254       10,001       21,647       -       52,037  

Substandard - Accruing

    1,064       -       987       349       364       25,620       22,317       -       50,701  

Substandard -Non-accrual

    -       1,177       2,049       8,201       271       8,513       5,481       -       25,692  

Total Commercial, financial and agricultural

  $ 531,833     $ 172,982     $ 346,772     $ 284,296     $ 123,977     $ 239,145     $ 1,170,641     $ 248     $ 2,869,894  

Current-period gross write-offs

  $ 36     $ 1,002     $ -     $ 52     $ 675     $ 4,327     $ 2,851     $ 3,172     $ 12,115  
                                                                         

Real estate - construction

                                                                       

Pass

  $ 367,275     $ 292,379     $ 506,542     $ 150,307     $ 32,330     $ 16,083     $ 72,793     $ -     $ 1,437,710  

Special Mention

    259       3,100       28,224       16,477       -       -       -       -       48,060  

Substandard - Accruing

    -       590       2,000       -       -       946       -       -       3,536  

Substandard -Non-accrual

    -       -       -       -       -       -       -       -       -  

Total Real estate - construction

  $ 367,534     $ 296,069     $ 536,766     $ 166,784     $ 32,330     $ 17,029     $ 72,793     $ -     $ 1,489,306  

Current-period gross write-offs

  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         

Owner-occupied commercial

                                                                       

Pass

  $ 377,351     $ 168,561     $ 503,351     $ 467,790     $ 276,795     $ 594,794     $ 65,269     $ 802     $ 2,454,713  

Special Mention

    10,148       6,410       1,373       22,087       5,441       16,912       4,961       -       67,332  

Substandard - Accruing

    3,562       417       1,147       6,681       2,169       2,378       -       -       16,354  

Substandard -Non-accrual

    -       -       2,886       -       79       5,779       -       -       8,744  

Total Owner-occupied commercial

  $ 391,061     $ 175,388     $ 508,757     $ 496,558     $ 284,484     $ 619,863     $ 70,230     $ 802     $ 2,547,143  

Current-period gross write-offs

  $ -     $ -     $ -     $ 100     $ -     $ 137     $ -     $ -     $ 237  
                                                                         

1-4 family mortgage

                                                                       

Pass

  $ 294,602     $ 126,953     $ 319,472     $ 188,104     $ 65,673     $ 78,629     $ 351,240     $ -     $ 1,424,673  

Special Mention

    -       469       2,523       2,943       1,124       6,628       2,428       -       16,115  

Substandard - Accruing

    -       -       -       -       -       403       381       -       784  

Substandard -Non-accrual

    -       265       646       855       405       380       500       -       3,051  

Total 1-4 family mortgage

  $ 294,602     $ 127,687     $ 322,641     $ 191,902     $ 67,202     $ 86,040     $ 354,549     $ -     $ 1,444,623  

Current-period gross write-offs

  $ -     $ 28     $ 61     $ 62     $ -     $ 129     $ 481     $ -     $ 761  
                                                                         

Non-owner occupied commercial

                                                                       

Pass

  $ 479,275     $ 174,415     $ 1,449,886     $ 888,829     $ 367,100     $ 670,317     $ 70,161     $ 246     $ 4,100,229  

Special Mention

    -       -       8,304       53,926       -       3,376       -       -       65,606  

Substandard - Accruing

    -       -       4,584       -       -       9,565       -       -       14,149  

Substandard -Non-accrual

    -       -       384       875       -       -       -       -       1,259  

Total Non-owner occupied commercial

  $ 479,275     $ 174,415     $ 1,463,158     $ 943,630     $ 367,100     $ 683,258     $ 70,161     $ 246     $ 4,181,243  

Current-period gross write-offs

  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         

Consumer

                                                                       

Pass

  $ 33,004     $ 2,941     $ 2,462     $ 1,346     $ 1,234     $ 2,505     $ 29,335     $ -     $ 72,827  

Special Mention

    -       -       -       -       -       -       45       -       45  

Substandard - Accruing

    -       -       -       -       -       -       -       -       -  

Substandard -Non-accrual

    -       -       -       -       -       755       -       -       755  

Total Consumer

  $ 33,004     $ 2,941     $ 2,462     $ 1,346     $ 1,234     $ 3,260     $ 29,380     $ -     $ 73,627  

Current-period gross write-offs

  $ 19     $ 8     $ -     $ -     $ -     $ 75     $ 469     $ -     $ 571  
                                                                         

Total Loans

                                                                       

Pass

  $ 2,080,509     $ 936,388     $ 3,113,189     $ 1,969,680     $ 863,220     $ 1,557,340     $ 1,709,994     $ 1,296     $ 12,231,616  

Special Mention

    12,174       10,645       52,684       97,875       9,819       36,917       29,081       -       249,195  

Substandard - Accruing

    4,626       1,007       8,718       7,030       2,533       38,912       22,698       -       85,524  

Substandard -Non-accrual

    -       1,442       5,965       9,931       755       15,427       5,981       -       39,501  

Total Loans

  $ 2,097,309     $ 949,482     $ 3,180,556     $ 2,084,516     $ 876,327     $ 1,648,596     $ 1,767,754     $ 1,296     $ 12,605,836  

Current-period gross write-offs

  $ 55     $ 1,038     $ 61     $ 214     $ 675     $ 4,668     $ 3,801     $ 3,172     $ 13,684  

 

December 31, 2023

 

2023

   

2022

   

2021

   

2020

   

2019

   

Prior

   

Revolving

   

Revolving lines of credit converted to term loans

   

Total

 
   

(In Thousands)

 

Commercial, financial, and agricultural

                                                                       

Pass

  $ 341,335     $ 455,281     $ 354,034     $ 162,543     $ 100,032     $ 151,527     $ 1,161,324     $ 491     $ 2,726,567  

Special Mention

    4,275       1,982       5,105       5,765       1,320       3,549       21,769       7       43,772  

Substandard - Accruing

    1,410       -       2,830       368       9,501       27,962       4,360       -       46,431  

Substandard -Non-accrual

    -       2       767       206       -       3,336       2,905       -       7,216  

Total Commercial, financial and agricultural

  $ 347,020     $ 457,265     $ 362,736     $ 168,882     $ 110,853     $ 186,374     $ 1,190,358     $ 498     $ 2,823,986  

Current-period gross write-offs

  $ 1,213     $ 4,690     $ 2,531     $ 779     $ 4     $ 2,014     $ 1,998     $ -     $ 13,229  
                                                                         

Real estate - construction

                                                                       

Pass

  $ 216,745     $ 874,903     $ 283,012     $ 49,668     $ 4,866     $ 16,558     $ 72,156     $ -     $ 1,517,908  

Special Mention

    589       -       -       -       -       -       -       -       589  

Substandard - Accruing

    -       33       -       -       -       978       -       -       1,011  

Substandard -Non-accrual

    -       -       -       -       -       -       -       111       111  

Total Real estate - construction

  $ 217,334     $ 874,936     $ 283,012     $ 49,668     $ 4,866     $ 17,536     $ 72,156     $ 111     $ 1,519,619  

Current-period gross write-offs

  $ -     $ -     $ 19     $ -     $ -     $ -     $ -     $ 89     $ 108  
                                                                         

Owner-occupied commercial

                                                                       

Pass

  $ 148,915     $ 478,364     $ 517,667     $ 300,978     $ 181,864     $ 512,752     $ 64,170     $ 844     $ 2,205,554  

Special Mention

    5,369       1,411       7,705       8,317       8,530       7,539       -       -       38,871  

Substandard - Accruing

    1,358       -       -       -       -       4,292       -       -       5,650  

Substandard -Non-accrual

    -       -       -       -       2,329       4,759       -       -       7,088  

Total Owner-occupied commercial

  $ 155,642     $ 479,775     $ 525,372     $ 309,295     $ 192,723     $ 529,342     $ 64,170     $ 844     $ 2,257,163  

Current-period gross write-offs

  $ -     $ -     $ -     $ -     $ 117     $ -     $ -     $ -     $ 117  
                                                                         

1-4 family mortgage

                                                                       

Pass

  $ 166,927     $ 376,964     $ 228,183     $ 75,104     $ 40,697     $ 61,046     $ 286,066     $ -     $ 1,234,987  

Special Mention

    574       721       2,504       1,009       3,865       439       727       -       9,839  

Substandard - Accruing

    -       -       -       -       -       425       261       -       686  

Substandard -Non-accrual

    155       380       741       572       877       901       800       -       4,426  

Total 1-4 family mortgage

  $ 167,656     $ 378,065     $ 231,428     $ 76,685     $ 45,439     $ 62,811     $ 287,854     $ -     $ 1,249,938  

Current-period gross write-offs

  $ -     $ 40     $ -     $ -     $ -     $ 14     $ -     $ -     $ 54  
                                                                         

Non-owner occupied commercial

                                                                       

Pass

  $ 162,418     $ 1,119,609     $ 1,106,055     $ 448,781     $ 249,059     $ 540,325     $ 100,516     $ 247     $ 3,727,010  

Special Mention

    -       -       -       -       -       -       850       -       850  

Substandard - Accruing

    -       4,975       -       -       -       11,005       -       -       15,980  

Substandard -Non-accrual

    -       -       -       -       130       376       -       -       506  

Total Non-owner occupied commercial

  $ 162,418     $ 1,124,584     $ 1,106,055     $ 448,781     $ 249,189     $ 551,706     $ 101,366     $ 247     $ 3,744,346  

Current-period gross write-offs

  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         

Consumer

                                                                       

Pass

  $ 22,227     $ 3,890     $ 4,542     $ 1,794     $ 1,295     $ 2,687     $ 27,342     $ -     $ 63,777  

Special Mention

    -       -       -       -       -       -       -       -       -  

Substandard - Accruing

    -       -       -       -       -       -       -       -       -  

Substandard -Non-accrual

    -       -       -       -       -       -       -       -       -  

Total Consumer

  $ 22,227     $ 3,890     $ 4,542     $ 1,794     $ 1,295     $ 2,687     $ 27,342     $ -     $ 63,777  

Current-period gross write-offs

  $ -     $ -     $ -     $ -     $ 4     $ 49     $ 1,020     $ -     $ 1,073  
                                                                         

Total Loans

                                                                       

Pass

  $ 1,058,567     $ 3,309,011     $ 2,493,493     $ 1,038,868     $ 577,813     $ 1,284,895     $ 1,711,574     $ 1,582     $ 11,475,803  

Special Mention

    10,807       4,114       15,314       15,091       13,715       11,527       23,346       7       93,921  

Substandard - Accruing

    2,768       5,008       2,830       368       9,501       44,662       4,621       -       69,758  

Substandard -Non-accrual

    155       382       1,508       778       3,336       9,372       3,705       111       19,347  

Total Loans

  $ 1,072,297     $ 3,318,515     $ 2,513,145     $ 1,055,105     $ 604,365     $ 1,350,456     $ 1,743,246     $ 1,700     $ 11,658,829  

Current-period gross write-offs

  $ 1,213     $ 4,730     $ 2,550     $ 779     $ 125     $ 2,077     $ 3,018     $ 89     $ 14,581  

 

Nonperforming loans include nonaccrual loans and loans 90 or more days past due and still accruing. Loans by performance status as of December 31, 2024 and 2023 are as follows:

 

December 31, 2024

 

Performing

   

Nonperforming

   

Total

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 2,844,164     $ 25,730     $ 2,869,894  

Real estate - construction

    1,488,645       661       1,489,306  

Real estate - mortgage:

                       

Owner-occupied commercial

    2,538,399       8,744       2,547,143  

1-4 family mortgage

    1,439,332       5,291       1,444,623  

Non-owner occupied commercial

    4,179,984       1,259       4,181,243  

Total real estate - mortgage

    8,157,715       15,294       8,173,009  

Consumer

    72,846       781       73,627  

Total

  $ 12,563,370     $ 42,466     $ 12,605,836  

 

December 31, 2023

 

Performing

   

Nonperforming

   

Total

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 2,816,599     $ 7,387     $ 2,823,986  

Real estate - construction

    1,519,508       111       1,519,619  

Real estate - mortgage:

                       

Owner-occupied commercial

    2,250,074       7,089       2,257,163  

1-4 family mortgage

    1,243,603       6,335       1,249,938  

Non-owner occupied commercial

    3,743,840       506       3,744,346  

Total real estate - mortgage

    7,237,517       13,930       7,251,447  

Consumer

    63,672       105       63,777  

Total

  $ 11,637,296     $ 21,533     $ 11,658,829  

 

Loans by past due status as of December 31, 2024 and 2023 are as follows:

 

December 31, 202

 

Past Due Status (Accruing Loans)

                                 
                           

Total Past

   

Total

                   

Nonaccrual

 
   

30-59 Days

   

60-89 Days

   

90+ Days

   

Due

   

Nonaccrual

   

Current

   

Total Loans

   

With No ACL

 
                                                                 
   

(In Thousands)

 
                                                                 

Commercial, financial and agricultural

  $ 9,218     $ 8,469     $ 38     $ 17,725     $ 25,692     $ 2,826,477     $ 2,869,894     $ 22,266  

Real estate - construction

    6,046       15,898       661       22,605       -       1,466,701       1,489,306       -  

Real estate - mortgage:

                                                               

Owner-occupied commercial

    9,494       2,478       -       11,972       8,744       2,526,427       2,547,143       8,644  

1-4 family mortgage

    1,157       3,111       2,240       6,508       3,051       1,435,064       1,444,623       2,787  

Non-owner occupied commercial

    4,432       -       -       4,432       1,259       4,175,552       4,181,243       729  

Total real estate -mortgage

    15,083       5,589       2,240       22,912       13,054       8,137,043       8,173,009       12,160  

Consumer

    83       34       26       143       755       72,729       73,627       -  

Total

  $ 30,430     $ 29,990     $ 2,965     $ 63,385     $ 39,501     $ 12,502,950     $ 12,605,836     $ 34,426  

 

December 31, 2023

 

Past Due Status (Accruing Loans)

                                 
                           

Total Past

   

Total

                   

Nonaccrual

 
   

30-59 Days

   

60-89 Days

   

90+ Days

   

Due

   

Nonaccrual

   

Current

   

Total Loans

   

With No ACL

 
                                                                 
   

(In Thousands)

 
                                                                 

Commercial, financial and agricultural

  $ 3,418     $ 3,718     $ 170     $ 7,306     $ 7,217     $ 2,809,463       2,823,986     $ 5,028  

Real estate - construction

    -       34       -       34       111       1,519,474       1,519,619       -  

Real estate - mortgage:

                                                               

Owner-occupied commercial

    -       -       -       -       7,089       2,250,074       2,257,163       7,089  

1-4 family mortgage

    540       4,920       1,909       7,369       4,426       1,238,143       1,249,938       1,224  

Non-owner occupied commercial

    676       10,703       -       11,379       506       3,732,461       3,744,346       506  

Total real estate -mortgage

    1,216       15,623       1,909       18,748       12,021       7,220,678       7,251,447       8,819  

Consumer

    58       31       105       194       -       63,583       63,777       -  

Total

  $ 4,692     $ 19,406     $ 2,184     $ 26,282     $ 19,349     $ 11,613,198       11,658,829     $ 13,847  

 

There was no interest earned on nonaccrual loans for the years ended December 31, 2024 and 2023.

 

Loans that no longer share similar risk characteristics with the collectively evaluated pools are estimated on an individual basis. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows:

 

           

Accounts

                           

ACL

 

December 31, 2024

 

Real Estate

   

Receivable

   

Equipment

   

Other

   

Total

   

Allocation

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 18,901     $ 1,721     $ 7,449     $ 42,684     $ 70,755     $ 17,615  

Real estate - construction

    2,590       -       -       946       3,536       -  

Real estate - mortgage:

                                               

Owner-occupied commercial

    24,935       -       -       78       25,013       2,890  

1-4 family mortgage

    3,719       -       109       -       3,828       287  

Non-owner occupied commercial

    14,533       -       -       875       15,408       2,081  

Total real estate - mortgage

    43,187       -       109       953       44,249       5,258  

Consumer

    -       -       -       755       755       755  

Total

  $ 64,678     $ 1,721     $ 7,558     $ 45,338     $ 119,295     $ 23,628  

 

           

Accounts

                           

ACL

 

December 31, 2023

 

Real Estate

   

Receivable

   

Equipment

   

Other

   

Total

   

Allocation

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 20,266     $ 7,240     $ 2,126     $ 24,016     $ 53,648     $ 16,189  

Real estate - construction

    145       -       -       978       1,123       1  

Real estate - mortgage:

                                               

Owner-occupied commercial

    12,038       -       -       698       12,736       475  

1-4 family mortgage

    15,694       -       -       -       15,694       1,058  

Non-owner occupied commercial

    5,862       -       -       -       5,862       603  

Total real estate - mortgage

    33,594       -       -       698       34,291       2,136  

Total

  $ 54,005     $ 7,240     $ 2,126     $ 25,692     $ 89,063     $ 18,326  

 

The table below details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty that were modified during the years ended December 31, 2024 and 2023:

 

   

Year Ended December 31, 2024

 
           

Payment Deferral

                         
   

Term

   

and Term

   

New

           

Percentage of

 
   

Extensions

   

Extensions

   

Origination

   

Total

   

Total Loans

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 248     $ 12,354     $ -     $ 12,602       0.10 %

Owner-occupied commercial

    3,562       5,827       -       9,389       0.07 %

1-4 family mortgage

    175       174       96       445       - %

Total

  $ 3,985     $ 18,355     $ 96     $ 22,436       0.17 %

 

   

Year Ended December 31, 2023

 
           

Payment Deferral

                         
   

Term

   

and Term

   

New

           

Percentage of

 
   

Extensions

   

Extensions

   

Origination

   

Total

   

Total Loans

 
   

(In Thousands)

 

Commercial, financial and agricultural

  $ 28,363     $ -     $ -     $ 28,363       0.24 %

Owner-occupied commercial

    3,021       -       -       3,021       0.03 %

Non-owner occupied commercial

    10,932       303       -       11,234       0.10 %

Total

  $ 42,315     $ 303     $ -     $ 42,618       0.37 %

 

The following table summarizes the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the year ended December 31, 2024:

 

   

Year Ended December 31, 2024

 
           

Total Payment

 
   

Term Extensions

   

Deferral

 
   

(In months)

   

(In Thousands)

 

Commercial, financial and agricultural

    4 to 95     $ 1,403  

Real estate - construction

    -       -  

Owner-occupied commercial

    5 to 60       16  

1-4 family mortgage

    3 to 121       9  

Non-owner occupied commercial

    -       -  

 

   

Year Ended December 31, 2023

 
           

Total Payment

 
   

Term Extensions

   

Deferral

 
   

(In months)

   

(In Thousands)

 

Commercial, financial and agricultural

    1 to 65     $ -  

Real estate - construction

    -       -  

Owner-occupied commercial

    3 to 60       49  

1-4 family mortgage

    -       -  

Non-owner occupied commercial

    2 to 36       59  

 

There were no loans that were modified in the previous twelve months (i.e., the twelve months prior to default) that defaulted during the years ended December 31, 2024 and December 31, 2023, respectively. For purposes of this disclosure, default is defined as 90 days past due and still accruing or placement on nonaccrual status.

 

In the ordinary course of business, the Company has granted loans to certain related parties, including directors, and their affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction and repayment terms are customary for the type of loan. Changes in related party loans for the years ended December 31, 2024 and 2023 are as follows:

 

   

Years Ended December 31,

 
   

2024

   

2023

 
                 
   

(In Thousands)

 

Balance, beginning of year

  $ 39,831     $ 52,608  

Advances

    32,740       67,106  

Repayments

    (29,585 )     (79,883 )

Removal

    (559 )     -  

Balance, end of year

  $ 42,427     $ 39,831