(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |||||||||||||||||||
, | ||||||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||||||||
(Registrant's telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered: | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Page | |||||
($ in thousands) | June 30, 2021 (unaudited) | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Cash and due from banks, noninterest-bearing | $ | ||||||||||
Due from banks, interest-bearing | |||||||||||
Total cash and cash equivalents | |||||||||||
Securities available for sale | |||||||||||
Securities held to maturity (fair values of $ | |||||||||||
Presold mortgages in process of settlement at fair value | |||||||||||
SBA Loans held for sale | |||||||||||
Loans | |||||||||||
Allowance for credit losses on loans | ( | ( | |||||||||
Net loans | |||||||||||
Premises and equipment | |||||||||||
Operating right-of-use lease assets | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Foreclosed properties | |||||||||||
Bank-owned life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | ||||||||||
LIABILITIES | |||||||||||
Deposits: Noninterest bearing checking accounts | $ | ||||||||||
Interest bearing checking accounts | |||||||||||
Money market accounts | |||||||||||
Savings accounts | |||||||||||
Time deposits of $100,000 or more | |||||||||||
Other time deposits | |||||||||||
Total deposits | |||||||||||
Borrowings | |||||||||||
Accrued interest payable | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Preferred stock, no par value per share. Authorized: | |||||||||||
Issued & outstanding: | |||||||||||
Common stock, no par value per share. Authorized: | |||||||||||
Issued & outstanding: | |||||||||||
Retained earnings | |||||||||||
Stock in rabbi trust assumed in acquisition | ( | ( | |||||||||
Rabbi trust obligation | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ |
($ in thousands, except share data-unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||
Interest and fees on loans | $ | ||||||||||||||||||||||
Interest on investment securities: | |||||||||||||||||||||||
Taxable interest income | |||||||||||||||||||||||
Tax-exempt interest income | |||||||||||||||||||||||
Other, principally overnight investments | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||
Savings, checking and money market accounts | |||||||||||||||||||||||
Time deposits of $100,000 or more | |||||||||||||||||||||||
Other time deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for loan losses | |||||||||||||||||||||||
Provision for unfunded commitments | |||||||||||||||||||||||
Total provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Other service charges, commissions and fees | |||||||||||||||||||||||
Fees from presold mortgage loans | |||||||||||||||||||||||
Commissions from sales of insurance and financial products | |||||||||||||||||||||||
SBA consulting fees | |||||||||||||||||||||||
SBA loan sale gains | |||||||||||||||||||||||
Bank-owned life insurance income | |||||||||||||||||||||||
Securities gains (losses), net | |||||||||||||||||||||||
Other gains (losses), net | ( | ( | |||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||
Salaries expense | |||||||||||||||||||||||
Employee benefits expense | |||||||||||||||||||||||
Total personnel expense | |||||||||||||||||||||||
Occupancy expense | |||||||||||||||||||||||
Equipment related expenses | |||||||||||||||||||||||
Merger and acquisition expenses | |||||||||||||||||||||||
Intangibles amortization expense | |||||||||||||||||||||||
Foreclosed property (gains) losses, net | ( | ( | |||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Total noninterest expenses | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | ||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | ||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends declared per common share | $ | ||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
($ in thousands-unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized gains (losses) on securities available for sale: | |||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period, pretax | ( | ||||||||||||||||||||||
Tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||
Reclassification to realized (gains) losses | ( | ( | |||||||||||||||||||||
Tax expense (benefit) | |||||||||||||||||||||||
Postretirement Plans: | |||||||||||||||||||||||
Amortization of unrecognized net actuarial loss | |||||||||||||||||||||||
Tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income | $ |
($ in thousands, except share data - unaudited) | Common Stock | Retained Earnings | Stock in Rabbi Trust Assumed in Acquisition | Rabbi Trust Obligation | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Balances, April 1, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock repurchases | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Balances, April 1, 2021 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | $ | ( | ( |
($ in thousands, except share data - unaudited) | Common Stock | Retained Earnings | Stock in Rabbi Trust Assumed in Acquisition | Rabbi Trust Obligation | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Balances, January 1, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock repurchases | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Balances, January 1, 2021 | ( | ||||||||||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared $ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock repurchases | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2021 | $ | ( | ( |
($ in thousands-unaudited) | Six Months Ended June 30, | ||||||||||
2021 | 2020 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | ||||||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Net security premium amortization | |||||||||||
Loan discount accretion | ( | ( | |||||||||
Other purchase accounting accretion and amortization, net | |||||||||||
Foreclosed property (gains) losses and write-downs, net | ( | ||||||||||
Gains on securities available for sale | ( | ||||||||||
Other (gains) losses | ( | ||||||||||
Increase in net deferred loan fees | |||||||||||
Bank-owned life insurance income | ( | ( | |||||||||
Depreciation of premises and equipment | |||||||||||
Amortization of operating lease right-of-use assets | |||||||||||
Repayments of lease obligations | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of SBA servicing assets | |||||||||||
Fees/gains from sale of presold mortgages and SBA loans | ( | ( | |||||||||
Origination of presold mortgage loans in process of settlement | ( | ( | |||||||||
Proceeds from sales of presold mortgage loans in process of settlement | |||||||||||
Origination of SBA loans for sale | ( | ( | |||||||||
Proceeds from sales of SBA loans | |||||||||||
Increase in accrued interest receivable | ( | ( | |||||||||
Decrease (increase) in other assets | ( | ||||||||||
Increase in net deferred income tax asset | ( | ( | |||||||||
Decrease in accrued interest payable | ( | ( | |||||||||
(Decrease) increase in other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases of securities available for sale | ( | ( | |||||||||
Purchases of securities held to maturity | ( | ( | |||||||||
Proceeds from maturities/issuer calls of securities available for sale | |||||||||||
Proceeds from maturities/issuer calls of securities held to maturity | |||||||||||
Proceeds from sales of securities available for sale | |||||||||||
Redemptions of FRB and FHLB stock, net | |||||||||||
Net increase in loans | ( | ( | |||||||||
Proceeds from sales of foreclosed properties | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Proceeds from sales of premises and equipment | |||||||||||
Net cash paid from sale of insurance operations | ( | ||||||||||
Net cash used by investing activities | ( | ( | |||||||||
Cash Flows From Financing Activities | |||||||||||
Net increase in deposits | |||||||||||
Net decrease in short-term borrowings | ( | ||||||||||
Proceeds from long-term borrowings | |||||||||||
Payments on long-term borrowings | ( | ( | |||||||||
Cash dividends paid – common stock | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Payment of taxes related to stock withheld | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | ||||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid during the period for interest | $ | ||||||||||
Cash paid during the period for income taxes | |||||||||||
Non-cash: Unrealized (loss) gain on securities available for sale, net of taxes | ( | ||||||||||
Non-cash: Foreclosed loans transferred to other real estate | |||||||||||
Non-cash: Initial recognition of operating lease right-of-use assets and operating lease liabilities | |||||||||||
Non-cash: Receivable recorded related to sale of insurance operations | |||||||||||
Non-cash: Derecognition of intangible assets related to sale of insurance operations | ( | ||||||||||
(unaudited) | For the Period Ended June 30, 2021 |
Long-Term Restricted Stock | ||||||||||||||
Number of Units | Weighted-Average Grant-Date Fair Value | |||||||||||||
Nonvested at January 1, 2021 | $ | |||||||||||||
Granted during the period | ||||||||||||||
Vested during the period | ( | |||||||||||||
Forfeited or expired during the period | ( | |||||||||||||
Nonvested at June 30, 2021 | $ |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
($ in thousands except per share amounts) | Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Less: income allocated to participating securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Basic EPS per common share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities | ||||||||||||||||||||||||||||||||||||||
Diluted EPS per common share | $ | $ | $ | $ |
For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
($ in thousands except per share amounts) | Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Less: income allocated to participating securities | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||
Basic EPS per common share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Effect of Dilutive Securities | ||||||||||||||||||||||||||||||||||||||
Diluted EPS per common share | $ | $ | $ | $ |
($ in thousands) | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized | Amortized Cost | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||||||||||
Gains | (Losses) | Gains | (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total available for sale | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | ||||||||||||||||||||||||||||||||||||||||||||||
State and local governments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity | $ | ( | ( |
($ in thousands) | Securities in an Unrealized Loss Position for Less than 12 Months | Securities in an Unrealized Loss Position for More than 12 Months | Total | ||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | $ | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||
State and local governments | |||||||||||||||||||||||||||||||||||
Total unrealized loss position | $ |
($ in thousands) | Securities in an Unrealized Loss Position for Less than 12 Months | Securities in an Unrealized Loss Position for More than 12 Months | Total | ||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | $ | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||
State and local governments | |||||||||||||||||||||||||||||||||||
Total unrealized loss position | $ |
Securities Available for Sale | Securities Held to Maturity | ||||||||||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Securities | |||||||||||||||||||||||
Due within one year | $ | ||||||||||||||||||||||
Due after one year but within five years | |||||||||||||||||||||||
Due after five years but within ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Total securities | $ |
($ in thousands) | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
All loans: | |||||||||||||||||||||||
Commercial, financial, and agricultural | $ | % | $ | % | |||||||||||||||||||
Real estate – construction, land development & other land loans | % | % | |||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | % | % | |||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | % | % | |||||||||||||||||||||
Real estate – mortgage – commercial and other | % | % | |||||||||||||||||||||
Consumer loans | % | % | |||||||||||||||||||||
Subtotal | % | % | |||||||||||||||||||||
Unamortized net deferred loan fees | ( | ( | |||||||||||||||||||||
Total loans | $ | $ |
($ in thousands) | June 30, 2021 | December 31, 2020 | |||||||||
Guaranteed portions of non-PPP SBA loans included in table above | $ | ||||||||||
Unguaranteed portions of non-PPP SBA loans included in table above | |||||||||||
Total non-PPP SBA loans included in the table above | $ | ||||||||||
Sold portions of SBA loans with servicing retained - not included in tables above | $ |
Accretable Yield for PCI loans | For the Six Months Ended June 30, 2020 | ||||
Balance at beginning of period | $ | ||||
Accretion | ( | ||||
Reclassification from (to) nonaccretable difference | |||||
Other, net | ( | ||||
Balance at end of period |
($ in thousands) | June 30, 2021 | December 31, 2020 | |||||||||
Nonperforming assets | |||||||||||
Nonaccrual loans | $ | ||||||||||
TDRs - accruing | |||||||||||
Accruing loans > 90 days past due | |||||||||||
Total nonperforming loans | |||||||||||
Foreclosed real estate | |||||||||||
Total nonperforming assets | $ | ||||||||||
CECL | Incurred Loss | |||||||||||||||||||||||||
($ in thousands) | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||
Nonaccrual Loans with No Allowance | Nonaccrual Loans with an Allowance | Total Nonaccrual Loans | Nonaccrual Loans | |||||||||||||||||||||||
Commercial, financial, and agricultural | $ | |||||||||||||||||||||||||
Real estate – construction, land development & other land loans | ||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | ||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | ||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | ||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||
Total | $ |
($ in thousands) | For the Six Months Ended June 30, 2021 | ||||
Commercial, financial, and agricultural | $ | ||||
Real estate – construction, land development & other land loans | |||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||
Real estate – mortgage – home equity loans / lines of credit | |||||
Real estate – mortgage – commercial and other | |||||
Consumer loans | |||||
Total | $ |
($ in thousands) | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing 90 Days or More Past Due | Nonaccrual Loans | Accruing Current | Total Loans Receivable | |||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | ||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||
Total loans | $ |
($ in thousands) | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing 90 Days or More Past Due | Nonaccrual Loans | Accruing Current | Total Loans Receivable | |||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | ||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Purchased credit impaired | |||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||
Total loans | $ |
($ in thousands) | Residential Property | Business Assets | Land | Commercial Property | Other | Total Collateral-Dependent Loans | |||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | ||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total | $ |
($ in thousands) | Commercial, Financial, and Agricultural | Real Estate – Construction, Land Development & Other Land Loans | Real Estate – Residential (1-4 Family) First Mortgages | Real Estate – Mortgage – Home Equity Lines of Credit | Real Estate – Mortgage – Commercial and Other | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||
As of and for the three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provisions | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
As of and for the six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for implementation of CECL | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provisions | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Commercial, Financial, and Agricultural | Real Estate – Construction, Land Development & Other Land Loans | Real Estate – Residential (1-4 Family) First Mortgages | Real Estate – Mortgage – Home Equity Lines of Credit | Real Estate – Mortgage – Commercial and Other | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balances as of December 31, 2020: Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit impaired | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable as of December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance – total | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balances as of December 31, 2020: Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit impaired | $ |
($ in thousands) | Commercial, Financial, and Agricultural | Real Estate – Construction, Land Development & Other Land Loans | Real Estate – Residential (1-4 Family) First Mortgages | Real Estate – Mortgage – Home Equity Lines of Credit | Real Estate – Mortgage – Commercial and Other | Consumer Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||
As of and for the three months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
As of and for the six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balance as of June 30, 2020: Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit impaired | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable as of June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance – total | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balances as of June 30, 2020: Loans | |||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased credit impaired | $ |
($ in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | |||||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial, and agricultural | $ | — | |||||||||||||||||||||
Real estate – mortgage – construction, land development & other land loans | — | ||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | — | ||||||||||||||||||||||
Real estate – mortgage –home equity loans / lines of credit | — | ||||||||||||||||||||||
Real estate – mortgage –commercial and other | — | ||||||||||||||||||||||
Consumer loans | — | ||||||||||||||||||||||
Total impaired loans with no allowance | $ | — | |||||||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial, and agricultural | $ | ||||||||||||||||||||||
Real estate – mortgage – construction, land development & other land loans | |||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||
Real estate – mortgage –home equity loans / lines of credit | |||||||||||||||||||||||
Real estate – mortgage –commercial and other | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Total impaired loans with allowance | $ |
Risk Grade | Description | |||||||
Pass: | ||||||||
1 | Loans with virtually no risk, including cash secured loans. | |||||||
2 | Loans with documented significant overall financial strength. These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation. | |||||||
3 | Loans with documented satisfactory overall financial strength. These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances. | |||||||
4 | Loans to borrowers with acceptable financial condition. These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability. | |||||||
5 | Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management. Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. | |||||||
P (Pass) | Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. | |||||||
Special Mention: | ||||||||
6 | Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. | |||||||
Classified: | ||||||||
7 | An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. | |||||||
8 | Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. | |||||||
9 | Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. | |||||||
F (Fail) | Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. |
Term Loans by Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving | Total | |||||||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial, financial, and agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans |
($ in thousands) | Pass | Special Mention Loans | Classified Accruing Loans | Classified Nonaccrual Loans | Total | ||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | ||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Purchased credit impaired | |||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||
Total loans |
($ in thousands) | For the three months ended June 30, 2021 | For the three months ended June 30, 2020 | |||||||||||||||||||||||||||||||||
Number of Contracts | Pre- Modification Restructured Balances | Post- Modification Restructured Balances | Number of Contracts | Pre- Modification Restructured Balances | Post- Modification Restructured Balances | ||||||||||||||||||||||||||||||
TDRs – Accruing | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
TDRs – Nonaccrual | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | |||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total TDRs arising during period | $ | $ | $ | $ |
($ in thousands) | For the six months ended June 30, 2021 | For the six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||
Number of Contracts | Pre- Modification Restructured Balances | Post- Modification Restructured Balances | Number of Contracts | Pre- Modification Restructured Balances | Post- Modification Restructured Balances | ||||||||||||||||||||||||||||||
TDRs – Accruing | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
TDRs – Nonaccrual | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | |||||||||||||||||||||||||||||||||||
Real estate – construction, land development & other land loans | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | |||||||||||||||||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total TDRs arising during period | $ | $ | $ | $ |
($ in thousands) | For the Three Months Ended June 30, 2021 | For the Three Months Ended June 30, 2020 | |||||||||||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||||||||||||
Accruing TDRs that subsequently defaulted | |||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family first mortgages) | $ | $ | |||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||
Total accruing TDRs that subsequently defaulted | $ | $ |
($ in thousands) | For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2020 | |||||||||||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||||||||||||
Accruing TDRs that subsequently defaulted | |||||||||||||||||||||||
Real estate – mortgage – residential (1-4 family first mortgages) | $ | $ | |||||||||||||||||||||
Real estate – mortgage – commercial and other | |||||||||||||||||||||||
Total accruing TDRs that subsequently defaulted | $ | $ |
($ in thousands) | Total Allowance for Credit Losses - Unfunded Loan Commitments | ||||
Beginning balance at December 31, 2020 | $ | ||||
Adjustment for implementation of CECL on January 1, 2021 | |||||
Charge-offs | |||||
Recoveries | |||||
Provisions for credit losses on unfunded commitments | |||||
Ending balance at June 30, 2021 | $ |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||||
Customer lists | $ | |||||||||||||||||||||||||
Core deposit intangibles | ||||||||||||||||||||||||||
SBA servicing asset | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | |||||||||||||||||||||||||
Unamortizable intangible assets: | ||||||||||||||||||||||||||
Goodwill | $ |
($ in thousands) | Estimated Amortization Expense | |||||||
July 1, 2021 to December 31, 2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total | $ |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 Pension Plan | 2020 Pension Plan | 2021 SERP | 2020 SERP | 2021 Total Both Plans | 2020 Total Both Plans | |||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net (gain)/loss | ( | ||||||||||||||||||||||||||||||||||
Net periodic pension cost | $ |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
($ in thousands) | 2021 Pension Plan | 2020 Pension Plan | 2021 SERP | 2020 SERP | 2021 Total Both Plans | 2020 Total Both Plans | |||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net (gain)/loss | ( | ||||||||||||||||||||||||||||||||||
Net periodic pension cost | $ |
($ in thousands) | June 30, 2021 | December 31, 2020 | |||||||||
Unrealized gain (loss) on securities available for sale | $ | ||||||||||
Deferred tax asset (liability) | ( | ( | |||||||||
Net unrealized gain (loss) on securities available for sale | |||||||||||
Postretirement plans asset (liability) | ( | ( | |||||||||
Deferred tax asset (liability) | |||||||||||
Net postretirement plans asset (liability) | ( | ( | |||||||||
Total accumulated other comprehensive income (loss) | $ | ( |
($ in thousands) | Unrealized Gain (Loss) on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | ||||||||||||||
Beginning balance at January 1, 2021 | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | |||||||||||||||
Ending balance at June 30, 2021 | $ | ( | ( |
($ in thousands) | Unrealized Gain (Loss) on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | ||||||||||||||
Beginning balance at January 1, 2020 | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ( | ( | |||||||||||||||
Net current-period other comprehensive income (loss) | |||||||||||||||||
Ending balance at June 30, 2020 | $ | ( |
($ in thousands) | ||||||||||||||||||||||||||
Description of Financial Instruments | Fair Value at June 30, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Recurring | ||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
Government-sponsored enterprise securities | $ | |||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Total available for sale securities | $ | |||||||||||||||||||||||||
Presold mortgages in process of settlement | $ | |||||||||||||||||||||||||
Nonrecurring | ||||||||||||||||||||||||||
Collateral-dependent loans | $ | |||||||||||||||||||||||||
Foreclosed real estate |
($ in thousands) | ||||||||||||||||||||||||||
Description of Financial Instruments | Fair Value at December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Recurring | ||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
Government-sponsored enterprise securities | $ | |||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Total available for sale securities | $ | |||||||||||||||||||||||||
Presold mortgages in process of settlement | $ | |||||||||||||||||||||||||
Nonrecurring | ||||||||||||||||||||||||||
Impaired loans | $ | |||||||||||||||||||||||||
Foreclosed real estate |
($ in thousands) | ||||||||||||||||||||||||||
Description | Fair Value at June 30, 2021 | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Individually evaluated loans - collateral-dependent | $ | Appraised value | Discounts applied for estimated costs to sell | |||||||||||||||||||||||
Individually evaluated loans - cash flow dependent | PV of expected cash flows | Discount rates used in the calculation of the present value ("PV") of expected cash flows | ||||||||||||||||||||||||
Foreclosed real estate | Appraised value | Discounts for estimated costs to sell | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||
Description | Fair Value at December 31, 2020 | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Impaired loans - valued at collateral value | $ | Appraised value | Discounts applied for estimated costs to sell | |||||||||||||||||||||||
Impaired loans - valued at PV of expected cash flows | PV of expected cash flows | Discount rates used in the calculation of PV of expected cash flows | ||||||||||||||||||||||||
Foreclosed real estate | Appraised value | Discounts for estimated costs to sell | ||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
($ in thousands) | Level in Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||
Cash and due from banks, noninterest-bearing | Level 1 | $ | |||||||||||||||||||||||||||
Due from banks, interest-bearing | Level 1 | ||||||||||||||||||||||||||||
Securities held to maturity | Level 2 | ||||||||||||||||||||||||||||
SBA loans held for sale | Level 2 | ||||||||||||||||||||||||||||
Total loans, net of allowance | Level 3 | ||||||||||||||||||||||||||||
Accrued interest receivable | Level 1 | ||||||||||||||||||||||||||||
Bank-owned life insurance | Level 1 | ||||||||||||||||||||||||||||
SBA Servicing Asset | Level 3 | ||||||||||||||||||||||||||||
Deposits | Level 2 | ||||||||||||||||||||||||||||
Borrowings | Level 2 | ||||||||||||||||||||||||||||
Accrued interest payable | Level 2 | ||||||||||||||||||||||||||||
Commitments to extend credit | Level 3 |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||
$ in thousands | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||
In-scope of ASC 606: | |||||||||||||||||||||||
Service charges on deposit accounts: | $ | ||||||||||||||||||||||
Other service charges, commissions, and fees: | |||||||||||||||||||||||
Interchange income | |||||||||||||||||||||||
Other service charges and fees | |||||||||||||||||||||||
Commissions from sales of insurance and financial products: | |||||||||||||||||||||||
Insurance income | |||||||||||||||||||||||
Wealth management income | |||||||||||||||||||||||
SBA consulting fees | |||||||||||||||||||||||
Noninterest income (in-scope of ASC 606) | |||||||||||||||||||||||
Noninterest income (out-of-scope of ASC 606) | |||||||||||||||||||||||
Total noninterest income | $ |
($ in thousands) | |||||
July 1, 2021 to December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total undiscounted lease payments | |||||
Less effect of discounting | ( | ||||
Present value of estimated lease payments (lease liability) | $ |
Description | Due date | Call Feature | June 30, 2021 | Interest Rate | ||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/24/2023 | None | $ | |||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/22/2023 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 1/15/2026 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 6/26/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/17/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/18/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/22/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/20/2028 | None | ||||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 6/15/2036 | Quarterly by Company beginning 6/15/2011 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/7/2035 | Quarterly by Company beginning 1/7/2010 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Total borrowings/ weighted average rate as of | June 30, 2021 | $ | ||||||||||||||||||||||||
Unamortized discount on acquired borrowings | ( | |||||||||||||||||||||||||
Total borrowings | $ |
Description | Due date | Call Feature | December 31, 2020 | Interest Rate | ||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/24/2023 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/22/2023 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 1/15/2026 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 6/26/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/17/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/18/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/22/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/20/2028 | None | ||||||||||||||||||||||||
Other Borrowing | 4/7/2022 | None | ||||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 6/15/2036 | Quarterly by Company beginning 6/15/2011 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/7/2035 | Quarterly by Company beginning 1/7/2010 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Total borrowings / weighted average rate as of December 31, 2020 | $ | |||||||||||||||||||||||||
Unamortized discount on acquired borrowings | ( | |||||||||||||||||||||||||
Total borrowings | $ |
($ in thousands) | Three Months Ended June 30 | Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net interest income, as reported | $ | 58,759 | 52,624 | $ | 113,997 | 107,383 | |||||||||||||||||
Tax-equivalent adjustment | 517 | 330 | 959 | 664 | |||||||||||||||||||
Net interest income, tax-equivalent | $ | 59,276 | 52,954 | $ | 114,956 | 108,047 | |||||||||||||||||
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loans (1) (2) | $ | 4,679,119 | 4.48 | % | $ | 52,295 | $ | 4,738,702 | 4.41 | % | $ | 51,964 | |||||||||||||||||||||||
Taxable securities | 2,157,475 | 1.45 | % | 7,789 | 770,441 | 2.49 | % | 4,771 | |||||||||||||||||||||||||||
Non-taxable securities | 131,692 | 1.45 | % | 474 | 17,795 | 2.64 | % | 117 | |||||||||||||||||||||||||||
Short-term investments, primarily interest-bearing cash | 418,321 | 0.56 | % | 581 | 575,074 | 0.55 | % | 788 | |||||||||||||||||||||||||||
Total interest-earning assets | 7,386,607 | 3.32 | % | 61,139 | 6,102,012 | 3.80 | % | 57,640 | |||||||||||||||||||||||||||
Cash and due from banks | 85,742 | 88,727 | |||||||||||||||||||||||||||||||||
Premises and equipment | 123,172 | 114,911 | |||||||||||||||||||||||||||||||||
Other assets | 370,260 | 422,112 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,965,781 | $ | 6,727,762 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest bearing checking | $ | 1,278,969 | 0.07 | % | $ | 225 | $ | 972,580 | 0.11 | % | $ | 267 | |||||||||||||||||||||||
Money market deposits | 1,776,344 | 0.18 | % | 799 | 1,294,462 | 0.29 | % | 920 | |||||||||||||||||||||||||||
Savings deposits | 582,081 | 0.08 | % | 112 | 454,791 | 0.13 | % | 147 | |||||||||||||||||||||||||||
Time deposits >$100,000 | 526,706 | 0.52 | % | 681 | 632,319 | 1.48 | % | 2,324 | |||||||||||||||||||||||||||
Other time deposits | 218,463 | 0.33 | % | 182 | 242,754 | 0.69 | % | 416 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 4,382,563 | 0.18 | % | 1,999 | 3,596,906 | 0.46 | % | 4,074 | |||||||||||||||||||||||||||
Borrowings | 61,312 | 2.49 | % | 381 | 288,997 | 1.31 | % | 942 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,443,875 | 0.21 | % | 2,380 | 3,885,903 | 0.52 | % | 5,016 | |||||||||||||||||||||||||||
Noninterest bearing checking | 2,568,960 | 1,905,449 | |||||||||||||||||||||||||||||||||
Other liabilities | 58,968 | 64,915 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 893,978 | 871,495 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,965,781 | $ | 6,727,762 | |||||||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income | 3.19 | % | $ | 58,759 | 3.47 | % | $ | 52,624 | |||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | 3.22 | % | $ | 59,276 | 3.49 | % | $ | 52,954 | |||||||||||||||||||||||||||
Interest rate spread | 3.11 | % | 3.28 | % | |||||||||||||||||||||||||||||||
Average prime rate | 3.25 | % | 3.25 | % |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loans (1) | $ | 4,681,604 | 4.45 | % | $ | 103,368 | $ | 4,625,798 | 4.66 | % | $ | 107,261 | |||||||||||||||||||||||
Taxable securities | 1,906,549 | 1.45 | % | 13,702 | 802,485 | 2.57 | % | 10,245 | |||||||||||||||||||||||||||
Non-taxable securities | 99,622 | 1.62 | % | 797 | 19,757 | 2.86 | % | 281 | |||||||||||||||||||||||||||
Short-term investments, primarily interest-bearing cash | 456,066 | 0.57 | % | 1,281 | 400,934 | 0.95 | % | 1,886 | |||||||||||||||||||||||||||
Total interest-earning assets | 7,143,841 | 3.36 | % | $ | 119,148 | 5,848,974 | 4.11 | % | 119,673 | ||||||||||||||||||||||||||
Cash and due from banks | 83,486 | 75,984 | |||||||||||||||||||||||||||||||||
Premises and equipment | 122,485 | 114,624 | |||||||||||||||||||||||||||||||||
Other assets | 373,472 | 416,009 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,723,284 | $ | 6,455,591 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest bearing checking | $ | 1,241,662 | 0.08 | % | $ | 491 | $ | 935,792 | 0.14 | % | $ | 674 | |||||||||||||||||||||||
Money market deposits | 1,713,714 | 0.20 | % | 1,717 | 1,248,796 | 0.42 | % | 2,602 | |||||||||||||||||||||||||||
Savings deposits | 560,550 | 0.09 | % | 242 | 440,508 | 0.19 | % | 416 | |||||||||||||||||||||||||||
Time deposits >$100,000 | 540,865 | 0.57 | % | 1,539 | 638,216 | 1.65 | % | 5,247 | |||||||||||||||||||||||||||
Other time deposits | 221,239 | 0.36 | % | 398 | 246,807 | 0.74 | % | 908 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 4,278,030 | 0.21 | % | 4,387 | 3,510,119 | 0.56 | % | 9,847 | |||||||||||||||||||||||||||
Borrowings | 61,356 | 2.51 | % | 764 | 302,566 | 1.62 | % | 2,443 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,339,386 | 0.24 | % | 5,151 | 3,812,685 | 0.65 | % | 12,290 | |||||||||||||||||||||||||||
Noninterest bearing checking | 2,436,138 | 1,716,212 | |||||||||||||||||||||||||||||||||
Other liabilities | 57,895 | 61,570 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 889,865 | 865,124 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,723,284 | $ | 6,455,591 | |||||||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income | 3.22 | % | $ | 113,997 | 3.69 | % | $ | 107,383 | |||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (2) | 3.24 | % | $ | 114,956 | 3.71 | % | $ | 108,047 | |||||||||||||||||||||||||||
Interest rate spread | 3.12 | % | 3.46 | % | |||||||||||||||||||||||||||||||
Average prime rate | 3.25 | % | 3.84 | % |
$ in thousands | ||||||||||||||||||||||||||||||||
January 1, 2021 to June 30, 2021 | Balance at beginning of period | Internal Growth, net | Growth from Acquisitions | Balance at end of period | Total percentage growth | |||||||||||||||||||||||||||
Total loans | $ | 4,731,315 | 50,749 | — | 4,782,064 | 1.1 | % | |||||||||||||||||||||||||
Deposits – Noninterest bearing checking | 2,210,012 | 441,131 | — | 2,651,143 | 20.0 | % | ||||||||||||||||||||||||||
Deposits – Interest bearing checking | 1,172,022 | 206,843 | — | 1,378,865 | 17.6 | % | ||||||||||||||||||||||||||
Deposits – Money market | 1,581,364 | 239,111 | — | 1,820,475 | 15.1 | % | ||||||||||||||||||||||||||
Deposits – Savings | 519,266 | 74,363 | — | 593,629 | 14.3 | % | ||||||||||||||||||||||||||
Deposits – Brokered | 20,222 | (10,752) | — | 9,470 | (53.2) | % | ||||||||||||||||||||||||||
Deposits – Internet time | 249 | (249) | — | — | (100.0) | % | ||||||||||||||||||||||||||
Deposits – Time>$100,000 | 543,894 | (42,642) | — | 501,252 | (7.8) | % | ||||||||||||||||||||||||||
Deposits – Time<$100,000 | 226,567 | (10,043) | — | 216,524 | (4.4) | % | ||||||||||||||||||||||||||
Total deposits | $ | 6,273,596 | 897,762 | — | 7,171,358 | 14.3 | % |
ASSET QUALITY DATA ($ in thousands) | As of/for the quarter ended June 30, 2021 | As of/for the quarter ended December 31, 2020 | ||||||||||||
Nonperforming assets | ||||||||||||||
Nonaccrual loans | $ | 32,993 | 35,076 | |||||||||||
TDRs – accruing | 8,026 | 9,497 | ||||||||||||
Accruing loans >90 days past due | — | — | ||||||||||||
Total nonperforming loans | 41,019 | 44,573 | ||||||||||||
Foreclosed real estate | 826 | 2,424 | ||||||||||||
Total nonperforming assets | $ | 41,845 | 46,997 | |||||||||||
Asset Quality Ratios – All Assets | ||||||||||||||
Net charge-offs to average loans - annualized | 0.07 | % | 0.07 | % | ||||||||||
Nonperforming loans to total loans | 0.86 | % | 0.94 | % | ||||||||||
Nonperforming assets to total assets | 0.51 | % | 0.64 | % | ||||||||||
Allowance for loan losses to total loans | 1.36 | % | 1.11 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 158.52 | % | 117.53 | % |
($ in thousands) | At June 30, 2021 | At December 31, 2020 | |||||||||
Commercial, financial, and agricultural | $ | 9,476 | 9,681 | ||||||||
Real estate – construction, land development, and other land loans | 393 | 643 | |||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | 5,765 | 6,048 | |||||||||
Real estate – mortgage – home equity loans/lines of credit | 1,345 | 1,333 | |||||||||
Real estate – mortgage – commercial and other | 15,886 | 17,191 | |||||||||
Consumer loans | 128 | 180 | |||||||||
Total nonaccrual loans | $ | 32,993 | 35,076 |
As of June 30, 2021 | |||||||||||||||||||||||
($ in thousands) | Total Nonperforming Loans | Total Loans | Nonperforming Loans to Total Loans | Total Foreclosed Real Estate | |||||||||||||||||||
Region (1) | |||||||||||||||||||||||
Eastern Region (NC) | $ | 5,932 | 1,128,429 | 0.53 | % | $ | 120 | ||||||||||||||||
Central Region (NC) | 6,016 | 863,229 | 0.70 | % | 305 | ||||||||||||||||||
Triad Region (NC) | 4,790 | 614,504 | 0.78 | % | — | ||||||||||||||||||
Western Region (NC) | 2,847 | 612,668 | 0.46 | % | 124 | ||||||||||||||||||
Triangle Region (NC) | 266 | 424,370 | 0.06 | % | — | ||||||||||||||||||
Charlotte Region (NC) | 962 | 385,990 | 0.25 | % | — | ||||||||||||||||||
Southern Piedmont Region (NC) | 2,012 | 159,518 | 1.26 | % | 65 | ||||||||||||||||||
South Carolina Region | 742 | 204,208 | 0.36 | % | 40 | ||||||||||||||||||
SBA loans | 17,307 | 158,695 | 10.91 | % | 135 | ||||||||||||||||||
SBA - PPP loans | — | 155,514 | — | % | — | ||||||||||||||||||
Other | 145 | 74,939 | 0.19 | % | 37 | ||||||||||||||||||
Total | $ | 41,019 | 4,782,064 | 0.86 | % | $ | 826 |
($ in thousands) | At June 30, 2021 | At December 31, 2020 | |||||||||
Vacant land and farmland | $ | 517 | 753 | ||||||||
1-4 family residential properties | 113 | 517 | |||||||||
Commercial real estate | 196 | 1,154 | |||||||||
Total foreclosed real estate | $ | 826 | 2,424 |
($ in thousands) | Six Months Ended June 30, 2021 | Twelve Months Ended December 31, 2020 | Six Months Ended June 30, 2020 | ||||||||||||||
Loans outstanding at end of period | $ | 4,782,064 | 4,731,315 | 4,770,063 | |||||||||||||
Average amount of loans outstanding | $ | 4,681,604 | 4,702,743 | 4,625,798 | |||||||||||||
Allowance for loan losses, at beginning of year | $ | 52,388 | 21,398 | 21,398 | |||||||||||||
Adoption of CECL | 14,575 | — | — | ||||||||||||||
Provision (reversal) for loan losses | — | 35,039 | 24,888 | ||||||||||||||
66,963 | 56,437 | 46,286 | |||||||||||||||
Loans charged off: | |||||||||||||||||
Commercial, financial, and agricultural | (1,988) | (5,608) | (3,931) | ||||||||||||||
Real estate – construction, land development & other land loans | (66) | (51) | (45) | ||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | (114) | (478) | (474) | ||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | (139) | (524) | (381) | ||||||||||||||
Real estate – mortgage – commercial and other | (1,834) | (968) | (545) | ||||||||||||||
Consumer loans | (307) | (873) | (397) | ||||||||||||||
Total charge-offs | (4,448) | (8,502) | (5,773) | ||||||||||||||
Recoveries of loans previously charged-off: | |||||||||||||||||
Commercial, financial, and agricultural | 667 | 745 | 477 | ||||||||||||||
Real estate – construction, land development & other land loans | 686 | 1,552 | 643 | ||||||||||||||
Real estate – mortgage – residential (1-4 family) first mortgages | 323 | 754 | 315 | ||||||||||||||
Real estate – mortgage – home equity loans / lines of credit | 229 | 487 | 166 | ||||||||||||||
Real estate – mortgage – commercial and other | 340 | 621 | 102 | ||||||||||||||
Consumer loans | 262 | 294 | 126 | ||||||||||||||
Total recoveries | 2,507 | 4,453 | 1,829 | ||||||||||||||
Net (charge-offs) recoveries | (1,941) | (4,049) | (3,944) | ||||||||||||||
Allowance for credit losses on loans, at end of period | $ | 65,022 | 52,388 | 42,342 | |||||||||||||
Ratios: | |||||||||||||||||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.08 | % | 0.09 | % | 0.17 | % | |||||||||||
Allowance for loan losses as a percent of loans at end of period | 1.36 | % | 1.11 | % | 0.89 | % |
June 30, 2021 | December 31, 2020 | ||||||||||
Risk-based capital ratios: | |||||||||||
Common equity Tier 1 to Tier 1 risk weighted assets | 12.81 | % | 13.19 | % | |||||||
Minimum required Common Equity Tier 1 capital | 7.00 | % | 7.00 | % | |||||||
Tier I capital to Tier 1 risk weighted assets | 13.80 | % | 14.28 | % | |||||||
Minimum required Tier 1 capital | 8.50 | % | 8.50 | % | |||||||
Total risk-based capital to Tier II risk weighted assets | 15.05 | % | 15.37 | % | |||||||
Minimum required total risk-based capital | 10.50 | % | 10.50 | % | |||||||
Leverage capital ratios: | |||||||||||
Tier 1 capital to quarterly average total assets | 9.43 | % | 9.88 | % | |||||||
Minimum required Tier 1 leverage capital | 4.00 | % | 4.00 | % |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
April 1, 2021 to April 30, 2021 | — | $ | — | — | $ | 15,964,472 | ||||||||||||||||||||
May 1, 2021 to May 31, 2021 | — | — | — | $ | 15,964,472 | |||||||||||||||||||||
June 1, 2021 to June 30, 2021 | — | — | — | $ | 15,964,472 | |||||||||||||||||||||
Total | — | — | — | $ | 15,964,472 |
2.a | |||||
2.b | |||||
2.c | |||||
2.d | |||||
2.e | |||||
3.a | Articles of Incorporation of the Company and amendments thereto were filed as Exhibits 3.a.i through 3.a.v to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2002, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibits 3.1 and 3.2 to the Company’s Current Report on Form 8-K filed on January 13, 2009, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1.b to the Company’s Registration Statement on Form S-3D filed on June 29, 2010 (Commission File No. 333-167856), and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 6, 2011, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 26, 2012, and are incorporated herein by reference. | ||||
3.b | |||||
4.a | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. |
FIRST BANCORP | |||||
August 9, 2021 | BY:/s/ Richard H. Moore | ||||
Richard H. Moore Chief Executive Officer (Principal Executive Officer), and Director | |||||
August 9, 2021 | BY:/s/ Eric P. Credle | ||||
Eric P. Credle Executive Vice President and Chief Financial Officer |
August 9, 2021 | /s/ Richard H. Moore | ||||
Richard H. Moore | |||||
Chief Executive Officer |
August 9, 2021 | /s/ Eric P. Credle | ||||
Eric P. Credle | |||||
Chief Executive Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 292,774 | $ 170,734 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 28,491,633 | 28,579,335 |
Common stock, shares outstanding (in shares) | 28,491,633 | 28,579,335 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 29,285 | $ 16,352 | $ 57,479 | $ 34,532 |
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period, pretax | 4,326 | 2,772 | (19,909) | 23,537 |
Tax (expense) benefit | (994) | (637) | 4,575 | (5,409) |
Reclassification to realized (gains) losses | 0 | (8,024) | 0 | (8,024) |
Tax expense (benefit) | 0 | 1,844 | 0 | 1,844 |
Postretirement Plans: | ||||
Amortization of unrecognized net actuarial loss | 205 | 180 | 376 | 358 |
Tax benefit | (77) | (42) | (117) | (83) |
Other comprehensive income (loss) | 3,460 | (3,907) | (15,075) | 12,223 |
Comprehensive income | $ 32,745 | $ 12,445 | $ 42,404 | $ 46,755 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.18 | $ 0.40 | $ 0.36 |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly in all material respects the consolidated financial position of the Company as of June 30, 2021, the consolidated results of operations for the three and six months ended June 30, 2021 and 2020, and the consolidated cash flows for the six months ended June 30, 2021 and 2020. Any such adjustments were of a normal, recurring nature. Reference is made to the 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for a discussion of accounting policies and other relevant information with respect to the financial statements. The results of operations for the periods ended June 30, 2021 and 2020 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated all subsequent events through the date the financial statements were issued. Recent Developments: COVID-19 - The impact of the COVID-19 pandemic has continued to lessen in 2021 in our market areas. Recently however, there has been an emergence of new, more virulent strains of COVID-19 that are now spreading at higher transmission rates than prior strains. We are uncertain what impact this will have on the Company and its market areas. On December 27, 2020, the Economic Aid Act was signed into law, which included another round of Paycheck Protection Program (PPP) funding. The Company began originating the new round of PPP loans in January 2021. During the first six months of 2021, the Company funded $112 million in PPP loans, while also processing $198 million in forgiveness payments related to 2020 PPP loan originations. In response to the pandemic onset in 2020, the Company generally offered impacted borrowers loan payment deferrals of 90 days in duration. Since that time, most of our borrowers have resumed payments and as of June 30, 2021, the Company had remaining pandemic-related loan deferrals of $2.1 million. The extent to which the COVID-19 pandemic has a further impact on our business, results of operations, and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities and other third parties in response to the COVID-19 pandemic.
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Accounting Policies |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Note 1 to the 2020 Annual Report on Form 10-K filed with the SEC contains a description of the accounting policies followed by the Company and a discussion of recent accounting pronouncements. The following paragraphs update that information as necessary. Accounting Standards Adopted in 2021 In August 2018, the FASB amended the Compensation - Retirement Benefits – Defined Benefit Plans Topic of the Accounting Standards Codification to improve disclosure requirements for employers that sponsor defined benefit pension and other postretirement plans. The guidance removed disclosures that were no longer considered cost-beneficial, clarified the specific requirements of disclosures, and added disclosure requirements identified as relevant. The amendments were effective for the Company on January 1, 2021 and the adoption of this amendment did not have a material effect on its financial statements. On January 1, 2021, the Company adopted the current expected credit loss (CECL) guidance in accordance with Accounting Standards Codification ("ASC") 326. CECL replaced the prior incurred-loss methodology for recognizing credit losses with a methodology that is based on estimating future expected lifetime credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures, such as unfunded commitments to extend credit. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not they will be required to sell. The Company adopted CECL as of January 1, 2021 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2021 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). The transition adjustment of the adoption of CECL included an increase in the allowance for credit losses on loans of $14.6 million, which is presented as a reduction to loans outstanding, and an increase in the allowance for credit losses on unfunded loan commitments of $7.5 million, which is recorded within Other Liabilities. The adoption of CECL had an insignificant impact on the Company's held to maturity and available for sale securities portfolios. The Company recorded a net decrease to retained earnings of $17.1 million as of January 1, 2021 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Federal banking regulatory agencies provided optional relief to delay the adverse regulatory capital impact of CECL at adoption. The Company did not elect the option. The Company adopted CECL using the prospective transition approach for PCD assets that were previously classified as PCI under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The amortized cost basis of the PCD assets was adjusted to reflect the addition of $0.1 million to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at a rate that approximates the effective interest rate as of January 1, 2021. With regard to purchased credit deteriorated (PCD) assets, because the Company elected to disaggregate the former purchased credit impaired (PCI) pools and no longer considers these pools to be the unit of account, contractually delinquent PCD loans are now reported as nonaccrual loans using the same criteria as other loans. Similarly, although management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings (TDRs) as of the date of adoption, PCD loans that are restructured and meet the definition of troubled debt restructurings after the adoption of CECL will be reported as such. Accrued interest for all financial instruments is included in a separate line on the face of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on nonaccrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. The allowance for credit losses for the majority of loans was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a three-year straight-line reversion period. The Company elected to use, as a practical expedient, the fair value of collateral when determining the allowance for credit losses on loans for which repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty (collateral-dependent loans). The Company's CECL allowances will fluctuate over time due to macroeconomic conditions and forecasts as well as the size and composition of the loan portfolios. Accounting Policy Updates Securities - Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Debt securities not classified as held to maturity are classified as “available for sale” and carried at fair value, with unrealized holding gains and losses being reported as other comprehensive income or loss and reported as a separate component of shareholders’ equity. Interest income includes amortization or purchase premiums or discounts. Premiums and discounts are generally amortized into income on a level yield basis, with premiums being amortized to the earliest call date and discounts being accreted to the stated maturity date. Gains and losses on sales of securities are recognized at the time of sale based upon the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Allowance for Credit Losses - Securities Held to Maturity - Since its adoption of CECL, the Company measures expected credit losses on held to maturity debt securities on an individual security basis. Accrued interest receivable on held to maturity debt securities totaled $1.94 million at June 30, 2021 and was excluded from the estimate of credit losses. The estimate of expected credit losses is primarily based on the ratings assigned to the securities by debt rating agencies and the average of the annual historical loss rates associated with those ratings. The Company then multiplies those loss rates, as adjusted for any modifications to reflect current conditions and reasonable and supportable forecasts as considered necessary, by the remaining lives of each individual security to arrive at a lifetime expected loss amount. Virtually all of the mortgage-backed securities held by the Company are issued by government-sponsored corporations. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and local governments securities held by the Company are highly rating by major rating agencies. As a result, the allowance for credit losses on held to maturity securities was immaterial at June 30, 2021. Allowance for Credit Losses - Securities Available for Sale - For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance under CECL compared to a direct write down of the security under Incurred Loss. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses under CECL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2021, there was no allowance for credit losses related to the available-for-sale portfolio. Accrued interest receivable on available for sale debt securities totaled $4.11 million at June 30, 2021 and was excluded from the estimate of credit losses. Loans - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $14.3 million at June 30, 2021 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured. Purchased Credit Deteriorated (PCD) Loans - Upon adoption of CECL, loans that were designated as purchased credit impaired (PCI) loans under the previous accounting guidance were classified as PCD loans without reassessment. The amount of PCD loans was immaterial at each period end. In future acquisitions, the Company may purchase loans, some of which have experienced more than insignificant credit deterioration since origination. In those cases, the Company will consider internal loan grades, delinquency status and other relevant factors in assessing whether purchased loans are PCD. PCD loans are recorded at the amount paid. An initial allowance for credit losses is determined using the same methodology as other loans held for investment, but with no impact to earnings. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent to initial recognition, PCD loans are subject to the same interest income recognition and impairment model as non-PCD loans, with changes to the allowance for loan losses recorded through provision expense. Allowance for Credit Losses - Loans - The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Estimated recoveries are considered for post-CECL adoption date charge-offs to the extent that they do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is utilized for substantially all pools, with discounted cash flows computed for each loan in a pool based on its individual characteristics (e.g. maturity date, payment amount, interest rate, etc.), and the results are aggregated at the pool level. A probability of default and loss given default, as adjusted for recoveries (as noted above), are applied to the discounted cash flows for each pool, while considering prepayment and principal curtailment effects. The analysis produces a discounted expected cash flow total for each pool, which is then compared to the amortized cost of the pool to arrive at the expected credit loss. In determining the proper level of default rates and loss given default, management has determined that the loss experience of the Company provides the best basis for its assessment of expected credit losses. It therefore utilized its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). Management considers forward-looking information in estimating expected credit losses. For substantially all segments of collectively evaluated loans, the Company incorporates two or more macroeconomic drivers using a statistical regression modeling methodology. The Company subscribes to a third-party service which provides a quarterly macroeconomic baseline forecast and alternative scenarios for the United States economy. The baseline forecast, along with the alternative scenarios, are evaluated by management to determine the best estimate within the range of expected credit losses. The baseline forecast incorporates an equal probability of the United States economy performing better or worse than this projection. With the ongoing pandemic, along with periodic starts and stops to reopening the economy and the impact of government stimulus, the baseline and alternative scenarios have reflected a high degree of volatility in economic forecasts from month-to-month. The Company based its adoption date allowance for credit loss adjustment primarily on the baseline forecast, which reflected ongoing threats to the economy, primarily arising from the pandemic. In reviewing forecasts during 2021, management noted high degrees of volatility in the monthly forecasts. Given the uncertainty that the volatility is indicative of and the inherent imprecision of a forecast accurately projecting economic statistics during these unprecedented times, management elected to base both its March 31, 2021 and June 30, 2021 computations of the allowance for credit losses primarily on an alternative, more negative forecast, that management judged to more appropriately reflect the inherent risks to its loan portfolio. Management has also evaluated the appropriateness of the reasonable and supportable forecast scenarios utilized for each period and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors over twelve quarters using a straight-line approach. The Company generally utilizes a four-quarter forecast and a twelve-quarter reversion period to the long-term average, which is then held static for the remainder of the forecast period. Included in its systematic methodology to determine its allowance for credit losses (ACL), Management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) changes in lending policies, procedures, and strategies, 2) changes in the nature and volume of the portfolio, 3) staff experience, 4) changes in volume and trends in classified loans, delinquencies and nonaccrual loans, 5) concentration risk, 6) trends in underlying collateral value, 7) external factors, including competition and legal and regulatory factors, 8) changes in the quality of the Company's loan review system, and 9) economic conditions not already captured. The Company has identified the following portfolio segments and calculates the allowance for credit losses for each using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type: Commercial, financial, and agricultural - Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Also included in this category for periods subsequent to March 31, 2020 are PPP loans, which are fully guaranteed by the SBA and thus have minimal risk. Real estate - construction, land development, & other land loans - Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans (see below). Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Real estate - mortgage - residential (1-4 family) first - Residential mortgage loans are susceptible to weakening general economic conditions and increases in unemployment rates and declining real estate values. Real estate - mortgage - home equity loans / lines of credit - Risks common to home equity loans and lines of credit are general economic conditions, including an increase in unemployment rates, and declining real estate values which reduce or eliminate the borrower’s home equity. Real estate - mortgage - commercial and other - Loans in this category are susceptible to declines in occupancy rates, business failure and general economic conditions. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category. Consumer loans - Risks common to these loans include regulatory risks, unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. Determining the Contractual Term - Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Troubled Debt Restructurings (TDRs) - A loan for which the terms have been modified resulting in a more than insignificant concession, and for which the borrower is experiencing financial difficulties, is generally considered to be a TDR. The allowance for credit loss on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. Allowance for Credit Losses - Unfunded Loan Commitments - Effective with the adoption of CECL, the Company estimates expected credit losses on commitments to extend credit over the contractual period in which the Company is exposed to credit risk on the underlying commitments, unless the obligation is unconditionally cancellable by the Company. The allowance for off-balance sheet credit exposures, which is reflected within "Other Liabilities," is adjusted for as an increase or decrease to the provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company recorded total stock-based compensation expense of $831,000 and $895,000 for the three months ended June 30, 2021 and 2020, respectively, and $1,228,000 and $1,408,000 for the six months ended June 30, 2021 and 2020, respectively, which includes the value of the stock grants to directors as discussed below. The Company recognized $191,000 and $206,000 of income tax benefits related to stock-based compensation expense in the income statement for the three months ended June 30, 2021 and 2020, respectively, and $282,000 and $324,000 for the six months ended June 30, 2021 and 2020, respectively. At June 30, 2021, the sole equity-based compensation plan for the Company is the First Bancorp 2014 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 8, 2014. As of June 30, 2021, the Equity Plan had 523,295 shares remaining available for grant. The Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the plans' participants with those of the Company and its shareholders. The Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted and unrestricted stock, restricted performance stock, unrestricted stock, and performance units. For the last several years, the only equity-based compensation granted by the Company has been shares of restricted stock, as it relates to employees, and unrestricted stock as it relates to non-employee directors. Recent restricted stock awards to employees typically include service-related vesting conditions only. Compensation expense for these awards is recorded over the requisite service periods. Upon forfeiture, any previously recognized compensation cost is reversed. Upon a change in control (as defined in the Equity Plan), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested. Certain of the Company’s equity grants contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for each incremental award. Compensation expense is based on the estimated number of stock awards that will ultimately vest. Over the past five years, there have been insignificant amounts of forfeitures, and therefore the Company assumes that all awards granted with service conditions only will vest. The Company issues new shares of common stock when restricted stock is granted. In addition to employee equity awards, the Company's practice is to grant unrestricted common shares, valued at approximately $32,000, to each non-employee director (currently 10 in total) in June of each year. Compensation expense associated with these director awards is recognized on the date of award since there are no vesting conditions. On June 1, 2021, the Company granted 7,050 shares of common stock to non-employee directors (705 shares per director), at a fair market value of $45.41 per share, which was the closing price of the Company's common stock on that date, and resulted in $320,000 in expense. On June 1, 2020, the Company granted 14,146 shares of common stock to non-employee directors (1,286 shares per director), at a fair market value of $24.87 per share, which was the closing price of the Company's common stock on that date, and resulted in $352,000 in expense. The expense associated with director grants is classified as "other operating expense" in the Consolidated Statements of Income. The following table presents information regarding the activity for the first six months of 2021 related to the Company’s outstanding restricted stock:
Total unrecognized compensation expense as of June 30, 2021 amounted to $2,065,000 with a weighted-average remaining term of 1.8 years. For the nonvested awards that are outstanding at June 30, 2021, the Company expects to record $1,255,000 in compensation expense in the next twelve months, $797,000 of which is expected to be recorded in the remaining quarters of 2021.
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Earnings Per Common Share |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share:
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Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities The book values and approximate fair values of investment securities at June 30, 2021 and December 31, 2020 are summarized as follows:
All of the Company’s mortgage-backed securities were issued by government-sponsored corporations, except for private mortgage-backed securities with a fair value of $0.9 million and $1.0 million as of June 30, 2021 and December 31, 2020, respectively. The following table presents information regarding securities with unrealized losses at June 30, 2021:
The following table presents information regarding securities with unrealized losses at December 31, 2020:
As of June 30, 2021 and December 31, 2020, the Company's security portfolio held 155 securities and 69 securities that were in an unrealized loss position, respectively. In the above tables, all of the securities that were in an unrealized loss position at June 30, 2021 and December 31, 2020 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the severity of the impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. No impairment charges were recognized for any securities during the six months ended June 30, 2020. At adoption of CECL on January 1, 2021 and at June 30, 2021, the Company determined that expected credit losses associated with held to maturity debt securities were insignificant. See Note 2 for additional details on the adoption of CECL as it relates to the securities portfolio. The book values and approximate fair values of investment securities at June 30, 2021, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
At June 30, 2021 and December 31, 2020 investment securities with carrying values of $812,763,000 and $630,303,000, respectively, were pledged as collateral for public deposits. Included in “other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Richmond (“FRB”) stock totaling $21,690,000 and $23,526,000 at June 30, 2021 and December 31, 2020, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $3,970,000 and $5,855,000 at June 30, 2021 and December 31, 2020, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The FRB stock had a cost and fair value of $17,720,000 and $17,671,000 at June 30, 2021 and December 31, 2020, respectively, and is a requirement for FRB member bank qualification. Periodically, both the FHLB and FRB recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end. The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at June 30, 2021 was approximately 1.62, which means the Company would receive approximately 20,051 Class A shares if the stock had converted on that date. This Class B stock does not have a readily determinable fair value and is carried at zero. If a readily determinable fair value becomes available for the Class B shares, or upon the conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.
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Loans, Allowance for Credit Losses, and Asset Quality Information |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Allowance for Credit Losses, and Asset Quality Information | Loans, Allowance for Credit Losses, and Asset Quality Information The following is a summary of the major categories of total loans outstanding:
Included in the line item "Commercial, financial, and agricultural" in the table above are PPP loans totaling $155.5 million and $240.5 million at June 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $6.2 million and $6.0 million at June 30, 2021 and December 31, 2020, respectively, in unamortized net deferred loan fees associated with PPP loans. These fees are being amortized under the effective interest method over the terms of the loans. Accelerated amortization is recorded in the periods in which principal amounts are forgiven in accordance with the terms of the program. Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.
At June 30, 2021 and December 31, 2020, there was a remaining unaccreted discount on the retained portion of sold SBA loans amounting to $7.0 million and $7.3 million, respectively. As of June 30, 2021, unamortized discounts on acquired loans totaled $5.3 million. At December 31, 2020, there were remaining accretable discounts of $7.9 million, related to purchased non-impaired loans. The discounts are amortized as yield adjustments over the respective lives of the loans, so long as the loans perform. At December 31, 2020, the carrying value of purchased credit impaired (PCI) loans were $8.6 million. The following table presents changes in the accretable yield for PCI loans for the six months ended June 30, 2020.
During the first six months of 2020, the Company received $414,000 in payments that exceeded the carrying amount of the related PCI loans, of which $341,000 was recognized as loan discount accretion income, $59,000 was recorded as additional loan interest income, and $14,000 was recorded as a recovery. Nonperforming assets are defined as nonaccrual loans, troubled debt restructured loans (TDRs), loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
At June 30, 2021 and December 31, 2020, the Company had $2.6 million and $1.9 million in residential mortgage loans in process of foreclosure, respectively. The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated.
Interest income recognized during the period on nonaccrual loans was immaterial. The following table represents the accrued interest receivables written off by reversing interest income during the six months ended June 30, 2021.
The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2021.
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020.
The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2021.
The Company designates individually evaluated loans on nonaccrual with a net book balance of $250,000 or greater as collateral dependent loans, as well as other loans that management of the Company designates as having higher risk. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Company's policy is to obtain third-party appraisals on any significant pieces of collateral. For loans secured by real estate, the Company's policy is to write nonaccrual loans down to 90% of the appraised value, which considers estimated selling costs. For real estate collateral that is in industries that are undergoing heightened stress, the Company often discounts the collateral values by an additional 10-25% due to additional discounts that are estimated to be incurred in a near-term sale. For non real-estate collateral secured loans, the Company generally writes nonaccrual loans down to 75% of the appraised value, which provides for selling costs and liquidity discounts that are usually incurred when disposing of non real-estate collateral. For reviewed loans that are not on nonaccrual basis, the Company assigns a specific allowance based on the parameters noted above. The Company does not believe that there is significant over-coverage of collateral for any of the loan types noted above. The following table presents the activity in the allowance for loan losses for all loans for the three and six months ended June 30, 2021 (under the CECL methodology).
The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020 (under the Incurred Loss methodology).
The following table presents the activity in the allowance for loan losses for the three and six months ended June 30, 2020 (under the Incurred Loss methodology).
The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2020.
Interest income recorded on impaired loans during the year ended December 31, 2020 was $1.1 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type. The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of June 30, 2021.
At June 30, 2021, as derived from the table above, the Company had $39.6 million in loans graded as Special Mention and $56.2 million in loans graded as Classified, which includes all nonaccrual loans. In the table above, substantially all of the "Classified Loans" have grades of 7 or Fail, with those categories having similar levels of risk. The amount of revolving lines of credit that converted to term loans during the period was immaterial. The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020.
Troubled Debt Restructurings The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses. The vast majority of the Company’s TDR's modified during the periods ended June 30, 2021 and June 30, 2020 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness. The Company’s TDR's can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDR's that are nonaccrual are reported within the nonaccrual loan totals presented previously. As of June 30, 2021, the Company had granted short-term deferrals related to the COVID-19 pandemic for $2.1 million of loans that were otherwise performing prior to modification. Pursuant to the CARES Act and banking regulator guidance, these loans are not considered TDRs. The following table presents information related to loans modified in a TDR during the three months ended June 30, 2021 and 2020.
The following table presents information related to loans modified in a TDR during the six months ended June 30, 2021 and 2020.
Accruing restructured loans that were modified in the previous twelve months and that defaulted during the three months ended June 30, 2021 and 2020 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.
Accruing restructured loans that were modified in the previous twelve months and that defaulted during the six months ended June 30, 2021 and 2020 are presented in the table below.
Allowance for Credit Losses - Unfunded Loan Commitments In addition to the allowance for credit losses on loans, the Company maintains an allowance for lending-related commitments such as unfunded loan commitments and letters of credit. Under CECL, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans, and are discussed in Note 2. The allowance for credit losses for unfunded loan commitments of $10.0 million and $0.6 million at June 30, 2021 and December 31, 2020, respectively, is separately classified on the balance sheet within the line items "Other Liabilities". The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2021.
Allowance for Credit Losses - Securities Held to Maturity As previously discussed, the allowance for credit losses for securities held to maturity was immaterial at June 30, 2021.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible AssetsThe following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2021 and December 31, 2020, and the carrying amount of unamortized intangible assets as of those same dates.
SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees." As derived from the table above, the Company had a SBA servicing asset at June 30, 2021 with a remaining book value of $6,089,000. The Company recorded $1,315,000 and $704,000 in servicing assets associated with the guaranteed portion of SBA loans sold during the first six months of 2021 and 2020, respectively. During the first six months of 2021 and 2020, the Company recorded $1,014,000 and $1,416,000, respectively, in related amortization expense. Included in the amortization expense for the first six months of 2020 was an impairment charge of approximately $500,000 due to a decrease in the fair value of the asset resulting from deterioration in market conditions at March 31, 2020. At June 30, 2021 and December 31, 2020, the Company serviced for others SBA loans totaling $426.9 million and $395.4 million, respectively. In the second quarter of 2021, the Company completed the sale of the operations and substantially all of the operating assets of its property and casualty insurance agency subsidiary, First Bank Insurance Services. In the transaction, intangible assets totaling $10.2 million were derecognized from the Company's balance sheet, including goodwill of $7.4 million and customer lists with a carrying value of $2.8 million. Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $845,000 and $978,000 for the three months ended June 30, 2021 and 2020, respectively, and $1,742,000 and $2,033,000 for the six months ended June 30, 2021 and 2020, respectively. Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring on October 31st of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. In addition the 2020 annual impairment evaluation, due to the COVID-19 pandemic, the Company evaluated its goodwill for impairment at each of the first three quarter ends of 2020, with each evaluation indicating that there was no impairment. Due to improving economic conditions and increases in the Company's stock price and market capitalization at year end 2020 and throughout 2021, no triggering events were identified and therefore, the Company has not performed interim impairment evaluations since the third quarter of 2020. The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets. income within the line item "Other service charges, commissions and fees" of the Consolidated Statements of Income.
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Pension Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012. The Company recorded periodic pension cost totaling $126,000 and $215,000 for the three months ended June 30, 2021 and 2020, respectively, and $317,000 and $431,000 for the six months ended June 30, 2021 and 2020. The following table contains the components of the pension cost.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) for the Company are as follows:
The following table discloses the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2021 (all amounts are net of tax).
The following table discloses the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2020 (all amounts are net of tax).
Amounts reclassified from accumulated other comprehensive income for Unrealized Gain (Loss) on Securities Available for Sale represent realized securities gains or losses, net of tax effects. Amounts reclassified from accumulated other comprehensive income for Postretirement Plans Asset (Liability) represent amortization of amounts included in Accumulated Other Comprehensive Income, net of taxes, and are recorded in the "Other operating expenses" line item of the Consolidated Statements of Income.
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair ValueFair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2021.
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2020.
The following is a description of the valuation methodologies used for instruments measured at fair value. Presold Mortgages in Process of Settlement - The fair value is based on the committed price that an investor has agreed to pay for the loan and is considered a Level 1 input. Securities Available for Sale — When quoted market prices are available in an active market, the securities are classified as Level 1 in the valuation hierarchy. If quoted market prices are not available, but fair values can be estimated by observing quoted prices of securities with similar characteristics, the securities are classified as Level 2 on the valuation hierarchy. Most of the fair values for the Company’s Level 2 securities are determined by our third-party bond accounting provider using matrix pricing. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. For the Company, Level 2 securities include mortgage-backed securities, commercial mortgage-backed obligations, government-sponsored enterprise securities, and corporate bonds. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Company reviews the pricing methodologies utilized by the bond accounting provider to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Individually evaluated loans — Fair values for individually evaluated loans are measured on a non-recurring basis and are based on the underlying collateral values securing the loans, adjusted for estimated selling costs, or the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is generally determined by third-party appraisers using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3). The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the loans first became impaired, and thus the appraisals are not necessarily as of the period ends presented. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Foreclosed real estate – Foreclosed real estate, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value. Fair value is measured on a non-recurring basis and is based upon independent market prices or current appraisals that are generally prepared using an income or market valuation approach and conducted by an independent, licensed third party appraiser, adjusted for estimated selling costs (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the assets were acquired, and thus the appraisals are not necessarily as of the period ends presented. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2021, the significant unobservable inputs used in the fair value measurements were as follows:
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:
The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2021 and December 31, 2020 are as follows:
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no highly liquid market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Revenue from Contracts with Customers All of the Company’s revenues that are in the scope of the “Revenue from Contracts with Customers” accounting standard (“ASC 606”) are recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2021 and 2020. Items outside the scope of ASC 606 are noted as such.
A description of the Company’s revenue streams accounted for under ASC 606 is detailed below. Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Overdraft fees are recognized at the point in time that the overdraft occurs. Maintenance and activity fees include account maintenance fees and transaction-based fees. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Service charges on deposits are withdrawn from the customer’s account balance. Other service charges, commissions, and fees: The Company earns interchange income on its customers’ debit and credit card usage and earns fees from other services utilized by its customers. Interchange income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange fees are offset with interchange expenses and are presented on a net basis. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, ATM surcharge fees, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Commissions from the sale of insurance and financial products: The Company earns commissions from the sale of insurance policies and wealth management products. Insurance income generally consists of commissions from the sale of insurance policies and performance-based commissions from insurance companies. The Company recognizes commission income from the sale of insurance policies when it acts as an agent between the insurance company and the policyholder. The Company’s performance obligation is generally satisfied upon the issuance of the insurance policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. Performance-based commissions from insurance companies are recognized at a point in time as policies are sold. See Note 15 regarding the Company's sale of its insurance agency operations. Wealth Management Income primarily consists of commissions received on financial product sales, such as annuities. The Company’s performance obligation is generally satisfied upon the issuance of the financial product. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company also earns some fees from asset management, which is billed quarterly for services rendered in the most recent period, for which the performance obligation has been satisfied. SBA consulting fees: The Company earns fees for its consulting services related to the origination of SBA loans. Fees are based on a percentage of the dollar amount of the originated loans and are recorded when the performance obligation has been satisfied. During 2020, the Company's SBA subsidiary assisted its third-party clients in the origination of PPP loans and charged and received fees for doing so. For several clients, the forgiveness piece of the PPP process, which will occur at a future time, was included in the up-front fees charged. Accordingly, the Company recorded deferred revenue in these cases, with a deferred revenue liability of $1.4 million at December 31, 2020. During the first six months of 2021, the Company realized approximately $1.0 million of this deferred revenue related to fulfilling a portion of the forgiveness services. At June 30, 2021, the remaining amount of deferred revenue was $0.4 million. These fees will be recorded as income in the period in which the services associated with the forgiveness process are rendered. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers.
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Leases |
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Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company enters into leases in the normal course of business. As of June 30, 2021, the Company leased seven branch offices for which the land and buildings are leased and eight branch offices for which the land is leased but the building is owned. The Company also leases office space for several operational departments. All of the Company’s leases are operating leases under applicable accounting standards and the lease agreements have maturity dates ranging from May 2021 through May 2076, some of which include options for multiple - and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.1 years as of June 30, 2021. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. As permitted by applicable accounting standards, the Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's Consolidated Balance Sheets. Leases are classified as either operating or finance leases at the lease commencement date, and as previously noted, all of the Company's leases have been determined to be operating leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 3.33% as of June 30, 2021. Total operating lease expense was $1.3 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively. The right-of-use assets and lease liabilities were $16.4 million and $16.9 million as of June 30, 2021, respectively, and were $17.5 million and $17.9 million as of December 31, 2020, respectively. Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2021 are as follows.
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Shareholders' Equity |
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Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Stock Repurchases During the first six months of 2021, the Company repurchased approximately 106,744 shares of the Company's common stock at an average stock price of $37.81 per share, which totaled $4 million, under a $20 million repurchase authorization publicly announced in January 2021. During the first six months of 2020, the Company repurchased approximately 680,695 shares of the Company's common stock at an average stock price of $32.96 per share, which totaled $22 million.
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Borrowings |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The following tables present information regarding the Company’s outstanding borrowings at June 30, 2021 and December 31, 2020 - dollars are in thousands:
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Disposition |
6 Months Ended |
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Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition | DispositionOn June 30, 2021, the Company completed the sale of the operations and substantially all of the operating assets of its property and casualty insurance agency subsidiary, First Bank Insurance Services, to Bankers Insurance, LLC for an initial purchase price valued at $13.0 million and a future earn-out payment of up to $1.0 million. The Company recorded a gain of $1.7 million related to the sale. Approximately $10.2 million of intangible assets were derecognized from the Company's balance sheet as a result of this transaction, including $7.4 million in goodwill and $2.8 million in other intangibles. At June 30, 2021 the $13.0 million purchase price was recorded as a receivable within "Other assets" on the consolidated balance sheet. Of that receivable amount, on July 1, 2021 the Company received $11.9 million in cash and one share of Bankers Insurance, LLC with a value of $0.6 million. The remaining $0.5 million in cash is due to be received in the fourth quarter of 2021. Effective with the close of the sale on June 30, 2021, Bankers Insurance, LLC assumed $555,000 in cash that was held at First Bank Insurance Services, which is reflected as cash paid related to the sale in the Consolidated Statement of Cash Flows for the six month period ended June 30, 2021. |
Pending Acquisition |
6 Months Ended |
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Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Pending Acquisition | Pending Acquisition On June 1, 2021, the Company announced the signing of a definitive merger agreement to acquire Select Bancorp, Inc. (“Select”), the parent company of Select Bank and Trust Company ("Select Bank"), in an all-stock transaction with a total value of approximately $314.3 million, or $18.10 per share, based on the Company’s closing stock price on May 28, 2021. Subject to the terms of the merger agreement, Select shareholders will receive 0.408 shares of First Bancorp's common stock for each share of Select common stock. Select Bank currently operates 22 banking locations in North Carolina, South Carolina, and Virginia. Select reported assets of $1.8 billion, gross loans of $1.3 billion and deposits of $1.6 billion as of March 31, 2021. The acquisition would increase the Company's market share in several existing markets, including the Triad, Triangle and Charlotte markets of North Carolina, as well as provide entry into several new markets, including Dunn, Goldsboro and Elizabeth City, North Carolina. The merger agreement was unanimously approved by the boards of directors of each company. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary conditions, including regulatory approvals and approval by both the Company's and Select’s shareholders.
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Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly in all material respects the consolidated financial position of the Company as of June 30, 2021, the consolidated results of operations for the three and six months ended June 30, 2021 and 2020, and the consolidated cash flows for the six months ended June 30, 2021 and 2020. Any such adjustments were of a normal, recurring nature. Reference is made to the 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for a discussion of accounting policies and other relevant information with respect to the financial statements. The results of operations for the periods ended June 30, 2021 and 2020 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated all subsequent events through the date the financial statements were issued. |
Accounting Standards Adopted in 2021 | Accounting Standards Adopted in 2021 In August 2018, the FASB amended the Compensation - Retirement Benefits – Defined Benefit Plans Topic of the Accounting Standards Codification to improve disclosure requirements for employers that sponsor defined benefit pension and other postretirement plans. The guidance removed disclosures that were no longer considered cost-beneficial, clarified the specific requirements of disclosures, and added disclosure requirements identified as relevant. The amendments were effective for the Company on January 1, 2021 and the adoption of this amendment did not have a material effect on its financial statements. On January 1, 2021, the Company adopted the current expected credit loss (CECL) guidance in accordance with Accounting Standards Codification ("ASC") 326. CECL replaced the prior incurred-loss methodology for recognizing credit losses with a methodology that is based on estimating future expected lifetime credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures, such as unfunded commitments to extend credit. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not they will be required to sell. The Company adopted CECL as of January 1, 2021 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2021 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”). The transition adjustment of the adoption of CECL included an increase in the allowance for credit losses on loans of $14.6 million, which is presented as a reduction to loans outstanding, and an increase in the allowance for credit losses on unfunded loan commitments of $7.5 million, which is recorded within Other Liabilities. The adoption of CECL had an insignificant impact on the Company's held to maturity and available for sale securities portfolios. The Company recorded a net decrease to retained earnings of $17.1 million as of January 1, 2021 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Federal banking regulatory agencies provided optional relief to delay the adverse regulatory capital impact of CECL at adoption. The Company did not elect the option. The Company adopted CECL using the prospective transition approach for PCD assets that were previously classified as PCI under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The amortized cost basis of the PCD assets was adjusted to reflect the addition of $0.1 million to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at a rate that approximates the effective interest rate as of January 1, 2021. With regard to purchased credit deteriorated (PCD) assets, because the Company elected to disaggregate the former purchased credit impaired (PCI) pools and no longer considers these pools to be the unit of account, contractually delinquent PCD loans are now reported as nonaccrual loans using the same criteria as other loans. Similarly, although management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings (TDRs) as of the date of adoption, PCD loans that are restructured and meet the definition of troubled debt restructurings after the adoption of CECL will be reported as such. Accrued interest for all financial instruments is included in a separate line on the face of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on nonaccrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. The allowance for credit losses for the majority of loans was calculated using a discounted cash flow methodology applied at a loan level with a one-year reasonable and supportable forecast period and a three-year straight-line reversion period. The Company elected to use, as a practical expedient, the fair value of collateral when determining the allowance for credit losses on loans for which repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty (collateral-dependent loans). The Company's CECL allowances will fluctuate over time due to macroeconomic conditions and forecasts as well as the size and composition of the loan portfolios. Accounting Policy Updates Securities - Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Debt securities not classified as held to maturity are classified as “available for sale” and carried at fair value, with unrealized holding gains and losses being reported as other comprehensive income or loss and reported as a separate component of shareholders’ equity. Interest income includes amortization or purchase premiums or discounts. Premiums and discounts are generally amortized into income on a level yield basis, with premiums being amortized to the earliest call date and discounts being accreted to the stated maturity date. Gains and losses on sales of securities are recognized at the time of sale based upon the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Allowance for Credit Losses - Securities Held to Maturity - Since its adoption of CECL, the Company measures expected credit losses on held to maturity debt securities on an individual security basis. Accrued interest receivable on held to maturity debt securities totaled $1.94 million at June 30, 2021 and was excluded from the estimate of credit losses. The estimate of expected credit losses is primarily based on the ratings assigned to the securities by debt rating agencies and the average of the annual historical loss rates associated with those ratings. The Company then multiplies those loss rates, as adjusted for any modifications to reflect current conditions and reasonable and supportable forecasts as considered necessary, by the remaining lives of each individual security to arrive at a lifetime expected loss amount. Virtually all of the mortgage-backed securities held by the Company are issued by government-sponsored corporations. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and local governments securities held by the Company are highly rating by major rating agencies. As a result, the allowance for credit losses on held to maturity securities was immaterial at June 30, 2021. Allowance for Credit Losses - Securities Available for Sale - For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance under CECL compared to a direct write down of the security under Incurred Loss. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses under CECL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2021, there was no allowance for credit losses related to the available-for-sale portfolio. Accrued interest receivable on available for sale debt securities totaled $4.11 million at June 30, 2021 and was excluded from the estimate of credit losses. Loans - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $14.3 million at June 30, 2021 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured. Purchased Credit Deteriorated (PCD) Loans - Upon adoption of CECL, loans that were designated as purchased credit impaired (PCI) loans under the previous accounting guidance were classified as PCD loans without reassessment. The amount of PCD loans was immaterial at each period end. In future acquisitions, the Company may purchase loans, some of which have experienced more than insignificant credit deterioration since origination. In those cases, the Company will consider internal loan grades, delinquency status and other relevant factors in assessing whether purchased loans are PCD. PCD loans are recorded at the amount paid. An initial allowance for credit losses is determined using the same methodology as other loans held for investment, but with no impact to earnings. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent to initial recognition, PCD loans are subject to the same interest income recognition and impairment model as non-PCD loans, with changes to the allowance for loan losses recorded through provision expense. Allowance for Credit Losses - Loans - The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Estimated recoveries are considered for post-CECL adoption date charge-offs to the extent that they do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is utilized for substantially all pools, with discounted cash flows computed for each loan in a pool based on its individual characteristics (e.g. maturity date, payment amount, interest rate, etc.), and the results are aggregated at the pool level. A probability of default and loss given default, as adjusted for recoveries (as noted above), are applied to the discounted cash flows for each pool, while considering prepayment and principal curtailment effects. The analysis produces a discounted expected cash flow total for each pool, which is then compared to the amortized cost of the pool to arrive at the expected credit loss. In determining the proper level of default rates and loss given default, management has determined that the loss experience of the Company provides the best basis for its assessment of expected credit losses. It therefore utilized its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). Management considers forward-looking information in estimating expected credit losses. For substantially all segments of collectively evaluated loans, the Company incorporates two or more macroeconomic drivers using a statistical regression modeling methodology. The Company subscribes to a third-party service which provides a quarterly macroeconomic baseline forecast and alternative scenarios for the United States economy. The baseline forecast, along with the alternative scenarios, are evaluated by management to determine the best estimate within the range of expected credit losses. The baseline forecast incorporates an equal probability of the United States economy performing better or worse than this projection. With the ongoing pandemic, along with periodic starts and stops to reopening the economy and the impact of government stimulus, the baseline and alternative scenarios have reflected a high degree of volatility in economic forecasts from month-to-month. The Company based its adoption date allowance for credit loss adjustment primarily on the baseline forecast, which reflected ongoing threats to the economy, primarily arising from the pandemic. In reviewing forecasts during 2021, management noted high degrees of volatility in the monthly forecasts. Given the uncertainty that the volatility is indicative of and the inherent imprecision of a forecast accurately projecting economic statistics during these unprecedented times, management elected to base both its March 31, 2021 and June 30, 2021 computations of the allowance for credit losses primarily on an alternative, more negative forecast, that management judged to more appropriately reflect the inherent risks to its loan portfolio. Management has also evaluated the appropriateness of the reasonable and supportable forecast scenarios utilized for each period and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors over twelve quarters using a straight-line approach. The Company generally utilizes a four-quarter forecast and a twelve-quarter reversion period to the long-term average, which is then held static for the remainder of the forecast period. Included in its systematic methodology to determine its allowance for credit losses (ACL), Management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) changes in lending policies, procedures, and strategies, 2) changes in the nature and volume of the portfolio, 3) staff experience, 4) changes in volume and trends in classified loans, delinquencies and nonaccrual loans, 5) concentration risk, 6) trends in underlying collateral value, 7) external factors, including competition and legal and regulatory factors, 8) changes in the quality of the Company's loan review system, and 9) economic conditions not already captured. The Company has identified the following portfolio segments and calculates the allowance for credit losses for each using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type: Commercial, financial, and agricultural - Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Also included in this category for periods subsequent to March 31, 2020 are PPP loans, which are fully guaranteed by the SBA and thus have minimal risk. Real estate - construction, land development, & other land loans - Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans (see below). Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Real estate - mortgage - residential (1-4 family) first - Residential mortgage loans are susceptible to weakening general economic conditions and increases in unemployment rates and declining real estate values. Real estate - mortgage - home equity loans / lines of credit - Risks common to home equity loans and lines of credit are general economic conditions, including an increase in unemployment rates, and declining real estate values which reduce or eliminate the borrower’s home equity. Real estate - mortgage - commercial and other - Loans in this category are susceptible to declines in occupancy rates, business failure and general economic conditions. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category. Consumer loans - Risks common to these loans include regulatory risks, unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. Determining the Contractual Term - Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Troubled Debt Restructurings (TDRs) - A loan for which the terms have been modified resulting in a more than insignificant concession, and for which the borrower is experiencing financial difficulties, is generally considered to be a TDR. The allowance for credit loss on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. Allowance for Credit Losses - Unfunded Loan Commitments - Effective with the adoption of CECL, the Company estimates expected credit losses on commitments to extend credit over the contractual period in which the Company is exposed to credit risk on the underlying commitments, unless the obligation is unconditionally cancellable by the Company. The allowance for off-balance sheet credit exposures, which is reflected within "Other Liabilities," is adjusted for as an increase or decrease to the provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund.
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Stock-Based Compensation (Tables) |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding restricted stock | The following table presents information regarding the activity for the first six months of 2021 related to the Company’s outstanding restricted stock:
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Earnings Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of the numerators and denominators used in computing basic and diluted earnings per common share | The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share:
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Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of investment securities | The book values and approximate fair values of investment securities at June 30, 2021 and December 31, 2020 are summarized as follows:
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Schedule of unrealized losses on investment securities | The following table presents information regarding securities with unrealized losses at June 30, 2021:
The following table presents information regarding securities with unrealized losses at December 31, 2020:
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Schedule of contractual maturity of investment securities | The book values and approximate fair values of investment securities at June 30, 2021, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of major categories of total loans outstanding | The following is a summary of the major categories of total loans outstanding:
Included in the line item "Commercial, financial, and agricultural" in the table above are PPP loans totaling $155.5 million and $240.5 million at June 30, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $6.2 million and $6.0 million at June 30, 2021 and December 31, 2020, respectively, in unamortized net deferred loan fees associated with PPP loans. These fees are being amortized under the effective interest method over the terms of the loans. Accelerated amortization is recorded in the periods in which principal amounts are forgiven in accordance with the terms of the program. Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.
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Schedule of activity in purchased credit impaired loans | At December 31, 2020, the carrying value of purchased credit impaired (PCI) loans were $8.6 million. The following table presents changes in the accretable yield for PCI loans for the six months ended June 30, 2020.
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Schedule of nonperforming assets and nonaccrual loans | Nonperforming assets are defined as nonaccrual loans, troubled debt restructured loans (TDRs), loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows.
The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated.
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Summary accrued interest receivables written off | The following table represents the accrued interest receivables written off by reversing interest income during the six months ended June 30, 2021.
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Schedule of analysis of payment status | The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2021.
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020.
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Analysis of collateral-dependent loans | The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2021.
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Schedule of allowance for loan losses | The following table presents the activity in the allowance for loan losses for all loans for the three and six months ended June 30, 2021 (under the CECL methodology).
The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020 (under the Incurred Loss methodology).
The following table presents the activity in the allowance for loan losses for the three and six months ended June 30, 2020 (under the Incurred Loss methodology).
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Schedule of loans individually evaluated for impairment | The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2020.
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Schedule of recorded investment in loans by credit quality indicators | The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of June 30, 2021.
At June 30, 2021, as derived from the table above, the Company had $39.6 million in loans graded as Special Mention and $56.2 million in loans graded as Classified, which includes all nonaccrual loans. In the table above, substantially all of the "Classified Loans" have grades of 7 or Fail, with those categories having similar levels of risk. The amount of revolving lines of credit that converted to term loans during the period was immaterial. The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020.
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Schedule of information related to troubled debt restructuring loans | The following table presents information related to loans modified in a TDR during the three months ended June 30, 2021 and 2020.
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets and goodwill | The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2021 and December 31, 2020, and the carrying amount of unamortized intangible assets as of those same dates.
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Schedule of the estimated amortization expense for the five succeeding fiscal years | The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets. income within the line item "Other service charges, commissions and fees" of the Consolidated Statements of Income.
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Pension Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the components of pension (income) expense | The following table contains the components of the pension cost.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) for the Company are as follows:
The following table discloses the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2021 (all amounts are net of tax).
The following table discloses the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2020 (all amounts are net of tax).
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments that were measured at fair value on a recurring and nonrecurring basis | The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2021.
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2020.
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Schedule of significant unobservable inputs | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2021, the significant unobservable inputs used in the fair value measurements were as follows:
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:
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Schedule of the carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2021 and December 31, 2020 are as follows:
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of noninterest income | The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2021 and 2020. Items outside the scope of ASC 606 are noted as such.
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated lease payments | Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2021 are as follows.
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Borrowings (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of borrowings | The following tables present information regarding the Company’s outstanding borrowings at June 30, 2021 and December 31, 2020 - dollars are in thousands:
|
Basis of Presentation (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
PPP loans originations | $ 112.0 | |
PPP forgiveness payoffs | 198.0 | $ 198.0 |
Deferral period for payment deferrals | 90 days | |
Remaining payment deferrals | $ 2.1 | $ 2.1 |
Stock-Based Compensation (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock |
6 Months Ended |
---|---|
Jun. 30, 2021
$ / shares
shares
| |
Number of Units | |
Nonvested, beginning (in shares) | shares | 172,105 |
Granted during the period (in shares) | shares | 26,350 |
Vested during the period (in shares) | shares | (19,415) |
Forfeited or expired during the period (in shares) | shares | (8,011) |
Nonvested, ending (in shares) | shares | 171,029 |
Weighted-Average Grant-Date Fair Value | |
Nonvested, beginning (in dollars per share) | $ / shares | $ 33.80 |
Granted during the period (in dollars per share) | $ / shares | 35.19 |
Vested during the period (in dollars per share) | $ / shares | 41.03 |
Forfeited or expired during the period (in dollars per share) | $ / shares | 38.00 |
Nonvested, ending (in dollars per share) | $ / shares | $ 33.00 |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Basic EPS: | ||||
Net income | $ 29,285 | $ 16,352 | $ 57,479 | $ 34,532 |
Less: income allocated to participating securities | (163) | (96) | (341) | (200) |
Basic EPS per common share | $ 29,122 | $ 16,256 | $ 57,138 | $ 34,332 |
Basic (in shares) | 28,331,456 | 28,799,828 | 28,344,633 | 29,015,308 |
Basic (in dollars per share) | $ 1.03 | $ 0.56 | $ 2.02 | $ 1.18 |
Diluted EPS: | ||||
Net income | $ 29,285 | $ 16,352 | $ 57,479 | $ 34,532 |
Effect of Dilutive Securities | 0 | 0 | 0 | 0 |
Diluted EPS per common share | $ 29,285 | $ 16,352 | $ 57,479 | $ 34,532 |
Basic (in shares) | 28,331,456 | 28,799,828 | 28,344,633 | 29,015,308 |
Effect of Dilutive Securities (in shares) | 158,575 | 169,900 | 169,309 | 169,113 |
Diluted (in shares) | 28,490,031 | 28,969,728 | 28,513,942 | 29,184,421 |
Diluted (in dollars per share) | $ 1.03 | $ 0.56 | $ 2.02 | $ 1.18 |
Earnings Per Common Share (Narrative) (Details) - shares |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|
Earnings Per Share [Abstract] | ||
Stock options outstanding (in shares) | 0 | 0 |
Loans, Allowance for Credit Losses, and Asset Quality Information (Changes in Recorded Investment and Accretable Yield of PCI Loans) (Details) - Purchased Credit Impaired Loans - PCI Loans, Accretable Discount $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 4,149 |
Accretion | (742) |
Reclassification from (to) nonaccretable difference | 366 |
Other, net | (510) |
Balance at end of period | $ 3,263 |
Loans, Allowance for Credit Losses, and Asset Quality Information (Summary of Nonperforming Assets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | $ 32,993 | $ 35,076 | |
Loans | 4,782,064 | 4,731,315 | $ 4,770,063 |
Foreclosed properties | 826 | 2,424 | |
Nonperforming assets | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 32,993 | 35,076 | |
TDRs - accruing | 8,026 | 9,497 | |
Accruing loans > 90 days past due | 0 | 0 | |
Loans | 41,019 | 44,573 | |
Foreclosed properties | 826 | 2,424 | |
Total nonperforming assets | $ 41,845 | $ 46,997 |
Loans, Allowance for Credit Losses, and Asset Quality Information - TDRs that Subsequently Defaulted (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021
USD ($)
contract
|
Jun. 30, 2020
USD ($)
contract
|
Jun. 30, 2021
USD ($)
contract
|
Jun. 30, 2020
USD ($)
contract
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 274 | $ 0 | $ 274 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate, commercial | Real estate – mortgage – commercial and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 274 | $ 0 | $ 274 |
Goodwill and Other Intangible Assets (Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 43,471 | $ 47,432 |
Accumulated Amortization | 32,409 | 32,066 |
Unamortizable intangible assets: | ||
Goodwill | 231,906 | 239,272 |
Customer lists | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 2,700 | 7,613 |
Accumulated Amortization | 1,141 | 2,814 |
Core deposit intangibles | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 28,440 | 28,440 |
Accumulated Amortization | 25,115 | 23,832 |
SBA servicing asset | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 11,291 | 9,976 |
Accumulated Amortization | 5,202 | 4,188 |
Other | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,040 | 1,403 |
Accumulated Amortization | $ 951 | $ 1,232 |
Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
July 1, 2021 to December 31, 2021 | $ 1,337 |
2022 | 1,994 |
2023 | 1,037 |
2024 | 392 |
2025 | 213 |
Thereafter | 0 |
Total | $ 4,973 |
Pension Plans (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021
USD ($)
plan
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
plan
|
Jun. 30, 2020
USD ($)
|
|
Retirement Benefits [Abstract] | ||||
Number of defined benefit plans | plan | 2 | 2 | ||
Net periodic pension cost (income) | $ 126,000 | $ 215,000 | $ 317,000 | $ 431,000 |
Contributions to plan | 0 | |||
Expected contributions to plan | $ 0 | $ 0 |
Pension Plans (Components of Pension Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 124 | 360 | 469 | 723 |
Expected return on plan assets | (203) | (325) | (528) | (650) |
Amortization of net (gain)/loss | 205 | 180 | 376 | 358 |
Net periodic pension cost | 126 | 215 | 317 | 431 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 104 | 305 | 410 | 613 |
Expected return on plan assets | (203) | (325) | (528) | (650) |
Amortization of net (gain)/loss | 158 | 221 | 368 | 440 |
Net periodic pension cost | 59 | 201 | 250 | 403 |
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 20 | 55 | 59 | 110 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net (gain)/loss | 47 | (41) | 8 | (82) |
Net periodic pension cost | $ 67 | $ 14 | $ 67 | $ 28 |
Accumulated Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | $ (725) | $ 14,350 |
Unrealized Gain (Loss) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | 539 | 20,448 |
Deferred tax asset (liability) | (124) | (4,699) |
Total accumulated other comprehensive income (loss) | 415 | 15,749 |
Postretirement Plans Asset (Liability) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | (1,441) | (1,817) |
Deferred tax asset (liability) | 301 | 418 |
Total accumulated other comprehensive income (loss) | (1,140) | (1,399) |
Total | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | $ (725) | $ 14,350 |
Revenue from Contracts with Customers (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
NONINTEREST INCOME | ||||
Service charges on deposit accounts | $ 2,824 | $ 2,289 | $ 5,557 | $ 5,626 |
Other service charges, commissions, and fees: | ||||
Interchange income | 4,409 | 3,086 | 7,933 | 5,972 |
Other service charges and fees | 2,087 | 1,538 | 4,085 | 2,721 |
Commissions from sales of insurance and financial products: | ||||
Insurance income | 1,393 | 1,363 | 2,719 | 2,561 |
Wealth management income | 1,073 | 727 | 1,937 | 1,597 |
SBA consulting fees | 2,187 | 3,739 | 4,951 | 4,766 |
Noninterest income (in-scope of ASC 606) | 13,973 | 12,742 | 27,182 | 23,243 |
Noninterest income (out-of-scope of ASC 606) | 7,401 | 13,451 | 14,861 | 16,655 |
Total noninterest income | $ 21,374 | $ 26,193 | $ 42,043 | $ 39,898 |
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue | $ 0.4 | $ 1.4 |
Deferred revenue realized | $ 1.0 |
Leases (Narrative) (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021
USD ($)
branch_office
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 19 years 1 month 6 days | ||
Weighted average discount rate | 3.33% | ||
Total operating lease expense | $ 1,300 | $ 1,400 | |
Operating right-of-use lease assets | 16,432 | $ 17,514 | |
Lease liabilities | $ 16,893 | $ 17,900 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Option extension period | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Option extension period | 10 years | ||
Land and Building | |||
Lessee, Lease, Description [Line Items] | |||
Number of branch locations | branch_office | 7 | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Number of branch locations | branch_office | 8 |
Leases (Schedule of Estimated Lease Payments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
July 1, 2021 to December 31, 2021 | $ 1,028 | |
2022 | 1,659 | |
2023 | 1,592 | |
2024 | 1,499 | |
2025 | 1,318 | |
Thereafter | 18,380 | |
Total undiscounted lease payments | 25,476 | |
Less effect of discounting | (8,583) | |
Present value of estimated lease payments (lease liability) | $ 16,893 | $ 17,900 |
Shareholders' Equity (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jan. 31, 2021 |
|
Equity [Abstract] | |||
Shares repurchased (in shares) | 106,744 | 680,695 | |
Average stock price (in dollars per share) | $ 37.81 | $ 32.96 | |
Cost of repurchase | $ 4,000,000 | $ 22,000,000 | |
Repurchase authorized amount | $ 20,000,000 |
Pending Acquisition (Details) $ / shares in Units, $ in Thousands |
Jun. 01, 2021
USD ($)
$ / shares
shares
|
Jun. 30, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
location
|
Dec. 31, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Assets | $ 8,200,582 | $ 7,289,751 | |||
Loans | 4,782,064 | 4,731,315 | $ 4,770,063 | ||
Deposits | $ 7,171,358 | $ 6,273,596 | |||
Select Bank | |||||
Business Acquisition [Line Items] | |||||
Number of banking locations | location | 22 | ||||
Assets | $ 1,800,000 | ||||
Loans | 1,300,000 | ||||
Deposits | $ 1,600,000 | ||||
Select | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 314,300 | ||||
Acquisition price per share (in dollars per share) | $ / shares | $ 18.10 | ||||
Common Stock Portion, number of First Bancorp's stock for each share of Select common stock converted (in shares) | shares | 0.408 |
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