10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

Commission File Number 0-15572

FIRST BANCORP

(Exact Name of Registrant as Specified in its Charter)

North Carolina				56-1421916
(State or Other Jurisdiction of Incorporation or Organization)				(I.R.S. Employer Identification Number)
300 SW Broad St.,	Southern Pines	,	North Carolina	28387
(Address of Principal Executive Offices)				(Zip Code)
(Registrant's telephone number, including area code)				(910)	246-2500

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered:
Common Stock, No Par Value	FBNC	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one)

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares of the registrant's Common Stock outstanding on April 30, 2022 was 35,639,889.

INDEX

FIRST BANCORP AND SUBSIDIARIES

	Page
Part I.  Financial Information
Item 1 - Financial Statements
Consolidated Balance Sheets - March 31, 2022 and December 31, 2021	4
Consolidated Statements of Income - For the Three Months Ended March 31, 2022 and 2021	5
Consolidated Statements of Comprehensive Income - For the Three Months Ended March 31, 2022 and 2021	6
Consolidated Statements of Shareholders’ Equity - For the Three Months Ended March 31, 2022 and 2021	7
Consolidated Statements of Cash Flows - For the Three Months Ended March 31, 2022 and 2021	8
Notes to Consolidated Financial Statements	9
Item 2 – Management’s Discussion and Analysis of Consolidated Results of Operations and Financial Condition	33
Item 3 – Quantitative and Qualitative Disclosures About Market Risk	45
Item 4 – Controls and Procedures	47
Part II.  Other Information
Item 1 – Legal Proceedings	47
Item 1A – Risk Factors	47
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 6 – Exhibits	49
Signatures	50

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FORWARD-LOOKING STATEMENTS

Part I of this report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Further, forward-looking statements are intended to speak only as of the date made. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” or other statements concerning our opinions or judgment about future events. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of our customers, our level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions, including the impact of the current pandemic. For additional information about factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of our 2021 Annual Report on Form 10-K and Item 1A of Part II of this report.

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Part I. Financial Information

Item 1 - Financial Statements

First Bancorp and Subsidiaries

Consolidated Balance Sheets

($ in thousands)	March 31, 2022 (unaudited)		December 31, 2021
ASSETS
Cash and due from banks, noninterest-bearing	$	124,785	128,228
Due from banks, interest-bearing	440,974		332,934
Total cash and cash equivalents	565,759		461,162
Securities available for sale	2,685,048		2,630,414
Securities held to maturity (fair values of $492,307 and $511,699)	546,090		513,825
Presold mortgages in process of settlement at fair value	5,672		19,257
SBA and other loans held for sale	3,630		61,003
Loans	6,064,698		6,081,715
Allowance for credit losses on loans	(82,069)		(78,789)
Net loans	5,982,629		6,002,926
Premises and equipment	135,482		136,092
Operating right-of-use lease assets	20,380		20,719
Accrued interest receivable	24,728		25,896
Goodwill	364,263		364,263
Other intangible assets	16,928		17,827
Foreclosed properties	2,750		3,071
Bank-owned life insurance	164,273		165,786
Other assets	134,428		86,660
Total assets	$	10,652,060	10,508,901
LIABILITIES
Deposits:      Noninterest-bearing checking accounts	$	3,593,642	3,348,622
Interest-bearing checking accounts	1,577,197		1,593,231
Money market accounts	2,636,913		2,562,283
Savings accounts	735,659		708,054
Time deposits of $100,000 or more	543,542		613,414
Other time deposits	298,194		299,025
Total deposits	9,385,147		9,124,629
Borrowings	67,415		67,386
Accrued interest payable	576		607
Operating lease liabilities	20,903		21,192
Other liabilities	60,529		64,512
Total liabilities	9,534,570		9,278,326
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Preferred stock, no par value per share.  Authorized: 5,000,000 shares
Issued & outstanding:  none as of March 31, 2022 and December 31, 2021	—		—
Common stock, no par value per share.  Authorized: 40,000,000 shares
Issued & outstanding:  35,639,889 shares and 35,629,177 shares as of March 31, 2022 and December 31, 2021, respectively	723,441		722,671
Retained earnings	559,004		532,874
Stock in rabbi trust assumed in acquisition	(1,814)		(1,803)
Rabbi trust obligation	1,814		1,803
Accumulated other comprehensive loss	(164,955)		(24,970)
Total shareholders’ equity	1,117,490		1,230,575
Total liabilities and shareholders’ equity	$	10,652,060	10,508,901

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Income

	Three Months Ended March 31,
	2022		2021
($ in thousands, except share data)	(unaudited)
INTEREST INCOME
Interest and fees on loans	$	64,202	51,073
Interest on investment securities:
Taxable interest income	13,210		5,913
Tax-exempt interest income	1,048		323
Other, principally overnight investments	649		700
Total interest income	79,109		58,009
INTEREST EXPENSE
Savings, checking and money market accounts	1,185		1,314
Time deposits of $100,000 or more	430		858
Other time deposits	156		216
Borrowings	460		383
Total interest expense	2,231		2,771
Net interest income	76,878		55,238
Provision for credit losses	3,500		—
Reversal of provision for unfunded commitments	(1,500)		—
Total provision for credit losses	2,000		—
Net interest income after provision for credit losses	74,878		55,238
NONINTEREST INCOME
Service charges on deposit accounts	3,541		2,733
Other service charges, commissions and fees	7,005		5,522
Fees from presold mortgage loans	1,121		4,544
Commissions from sales of insurance and financial products	945		2,190
SBA consulting fees	780		2,764
SBA loan sale gains	3,261		2,330
Bank-owned life insurance income	976		620
Other gains (losses), net	1,622		(34)
Total noninterest income	19,251		20,669
NONINTEREST EXPENSES
Salaries expense	23,454		20,131
Employee benefits expense	5,578		4,574
Total personnel expense	29,032		24,705
Occupancy expense	3,384		2,904
Equipment related expenses	1,304		1,045
Merger and acquisition expenses	3,484		—
Intangibles amortization expense	1,017		897
Foreclosed property (gains) losses, net	(80)		157
Other operating expenses	13,324		10,357
Total noninterest expenses	51,465		40,065
Income before income taxes	42,664		35,842
Income tax expense	8,695		7,648
Net income	$	33,969	28,194
Earnings per common share:
Basic	$	0.95	0.99
Diluted	0.95		0.99
Dividends declared per common share	$	0.22	0.20
Weighted average common shares outstanding:
Basic	35,433,739		28,357,809
Diluted	35,640,978		28,537,853

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Comprehensive Income

	Three Months Ended March 31,
	2022		2021
($ in thousands)	(unaudited)
Net income	$	33,969	28,194
Other comprehensive loss:
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period, pretax	(181,795)		(24,235)
Tax benefit	41,776		5,569
Postretirement Plans:
Amortization of unrecognized net actuarial loss	44		171
Tax benefit	(10)		(40)
Other comprehensive loss	(139,985)		(18,535)
Comprehensive (loss) income	$	(106,016)	9,659

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Shareholders’ Equity

($ 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 March 31, 2021
Balances, January 1, 2021	28,579	$	400,582	478,489	(2,243)	2,243	14,350	893,421
Adoption of new accounting standard				(17,051)				(17,051)
Net income				28,194				28,194
Cash dividends declared ($0.20 per common share)				(5,688)				(5,688)
Change in Rabbi Trust obligation					(13)	13		—
Stock repurchases	(107)	(4,036)						(4,036)
Stock-based compensation	20	651						651
Other comprehensive loss							(18,535)	(18,535)
Balances, March 31, 2021	28,489	$	397,094	483,944	(2,256)	2,256	(4,185)	876,853
Three Months Ended March 31, 2022
Balances, January 1, 2022	35,629	$	722,671	532,874	(1,803)	1,803	(24,970)	1,230,575
Net income				33,969				33,969
Cash dividends declared ($0.22 per common share)				(7,839)				(7,839)
Change in Rabbi Trust obligation					(11)	11		—
Stock withheld for payment of taxes	(3)	(117)						(117)
Stock-based compensation	14	887						887
Other comprehensive loss							(139,985)	(139,985)
Balances, March 31, 2022	35,640	$	723,441	559,004	(1,814)	1,814	(164,955)	1,117,490

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Cash Flows

	Three Months Ended March 31,
($ in thousands-unaudited)	2022		2021
Cash Flows From Operating Activities
Net income	$	33,969	28,194
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses	2,000		—
Net security premium amortization	3,437		2,876
Loan discount accretion	(1,671)		(1,341)
Other purchase accounting accretion and amortization, net	(172)		29
Foreclosed property (gains) losses and write-downs, net	(80)		157
Other (gains) losses, net	(1,622)		34
(Decrease) increase in net deferred loan fees	(776)		2,845
Bank-owned life insurance income	(976)		(620)
Depreciation of premises and equipment	1,726		1,448
Amortization of operating lease right-of-use assets	339		517
Repayments of lease obligations	(289)		(416)
Stock-based compensation expense	547		397
Amortization of intangible assets	1,017		897
Amortization of SBA servicing assets	626		470
Fees/gains from sale of presold mortgages and SBA loans	(4,382)		(6,874)
Origination of presold mortgage loans in process of settlement	(46,488)		(112,592)
Proceeds from sales of presold mortgage loans in process of settlement	60,860		127,346
Origination of SBA loans for sale	(39,807)		(37,359)
Proceeds from sales of SBA and other loans	88,895		32,467
Decrease in accrued interest receivable	1,168		1,620
Decrease (increase) in other assets	3,509		(5,242)
Decrease (increase) in net deferred income tax asset	1,160		(4,596)
Decrease in accrued interest payable	(31)		(163)
(Decrease) increase in other liabilities	(2,816)		639
Net cash provided by operating activities	100,143		30,733
Cash Flows From Investing Activities
Purchases of securities available for sale	(330,147)		(475,960)
Purchases of securities held to maturity	(36,089)		(37,438)
Proceeds from maturities/issuer calls of securities available for sale	91,421		80,650
Proceeds from maturities/issuer calls of securities held to maturity	2,684		5,780
(Purchases) redemptions of FRB and FHLB stock, net	(9,818)		1,836
Net decrease in loans	29,927		110,212
Proceeds from sales of foreclosed properties	520		1,183
Purchases of premises and equipment	(1,217)		(4,534)
Proceeds from sales of premises and equipment	99		218
Bank-owned life insurance death benefits	3,595		—
Net cash used by investing activities	(249,025)		(318,053)
Cash Flows From Financing Activities
Net increase in deposits	260,752		459,906
Payments on long-term borrowings	(33)		(531)
Cash dividends paid – common stock	(7,123)		(5,140)
Repurchases of common stock	—		(4,036)
Payment of taxes related to stock withheld	(117)		(103)
Net cash provided by financing activities	253,479		450,096
Increase in cash and cash equivalents	104,597		162,776
Cash and cash equivalents, beginning of period	461,162		367,290
Cash and cash equivalents, end of period	$	565,759	530,066
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest	$	2,422	2,934
Cash paid during the period for income taxes	—		9,585
Non-cash: Unrealized loss on securities available for sale, net of taxes	(140,019)		(18,666)
Non-cash: Foreclosed loans transferred to other real estate	119		727
Non-cash: Accrued dividends at end of period	7,839		5,688
Non-cash: Initial recognition of operating lease right-of-use assets and operating lease liabilities	—		444

See accompanying notes to consolidated financial statements.

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First Bancorp and Subsidiaries

Notes to Consolidated Financial Statements

(unaudited)

Note 1 - Organization and Basis of Presentation

The consolidated financial statements include the accounts of First Bancorp (the “Company”) and its wholly owned subsidiary First Bank (the “Bank”). The Bank has three wholly owned subsidiaries that are fully consolidated, SBA Complete, Inc. (“SBA Complete”), Magnolia Financial, Inc. ("Magnolia Financial"), and First Troy SPE, LLC. All significant intercompany accounts and transactions have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of March 31, 2022, the consolidated results of operations for the three months ended March 31, 2022 and 2021, and the consolidated cash flows for the three months ended March 31, 2022 and 2021. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year.

Reference is made to Note 1 of the 2021 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. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or shareholders' equity as previously reported.

The Company has evaluated all subsequent events through the date the financial statements were issued.

Impact of COVID-19

Our market areas and local economies continue to show signs of recovery from the impact of the COVID-19 pandemic. However, the current pandemic is ongoing and dynamic in nature, and there are many related uncertainties, including, among other things, its severity and new variants that may arise; its ultimate duration and infection spikes that may occur; the impact on our customers, employees and vendors; the impact on the financial services and banking industry; and the ongoing impact on the economy as a whole. 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.

Note 2 – Accounting Pronouncements

Accounting Standards Adopted in 2022

The Company did not adopt any accounting standards during the first three months of 2022.

Accounting Standards Pending Adoption

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This Accounting Standards Update ("ASU") eliminates the accounting guidance for troubled debt restructurings by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years and early adoption is permitted. The entity must have adopted the amendments in ASU 2016-13 ("CECL") to adopt the amendments in this ASU. The Company is currently evaluating the impact of

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adopting the new guidance on the consolidated financial statements but does not expect it to have a material effect on its financial statements.

Note 3 – Securities

The book values and approximate fair values of investment securities at March 31, 2022 and December 31, 2021 are summarized as follows:

($ in thousands)	March 31, 2022					December 31, 2021
	Amortized Cost		Fair Value	Unrealized		Amortized Cost		Fair Value	Unrealized
				Gains	(Losses)				Gains	(Losses)
Securities available for sale:
US Treasuries	$	149,534	149,391	—	(143)	$	—	—	—	—
Government-sponsored enterprise securities	71,953		64,168	—	(7,785)	71,951		69,179	—	(2,772)
Mortgage-backed securities	2,632,054		2,425,911	349	(206,492)	2,545,150		2,514,805	9,489	(39,834)
Corporate bonds	45,369		45,578	367	(158)	45,380		46,430	1,106	(56)
Total available for sale	$	2,898,910	2,685,048	716	(214,578)	2,662,481		2,630,414	10,595	(42,662)
Securities held to maturity:
Mortgage-backed securities	$	18,662	18,513	1	(150)	20,260		20,845	585	—
State and local governments	527,428		473,794	19	(53,653)	493,565		490,854	2,955	(5,666)
Total held to maturity	$	546,090	492,307	20	(53,803)	513,825		511,699	3,540	(5,666)

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises, except for private mortgage-backed securities with a fair value of $0.9 million and $0.9 million as of March 31, 2022 and December 31, 2021, respectively.

The following table presents information regarding securities with unrealized losses at March 31, 2022:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasuries	$	149,391	143	—	—	149,391	143
Government-sponsored enterprise securities	19,855		2,104	44,313	5,681	64,168	7,785
Mortgage-backed securities	1,656,529		133,422	705,932	73,220	2,362,461	206,642
Corporate bonds	13,914		86	928	72	14,842	158
State and local governments	431,433		46,491	40,482	7,162	471,915	53,653
Total unrealized loss position	$	2,271,122	182,246	791,655	86,135	3,062,777	268,381

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The following table presents information regarding securities with unrealized losses at December 31, 2021:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Government-sponsored enterprise securities	$	21,436	522	47,743	2,250	69,179	2,772
Mortgage-backed securities	1,773,022		25,977	404,484	13,857	2,177,506	39,834
Corporate bonds	999		1	945	55	1,944	56
State and local governments	228,279		3,797	34,398	1,869	262,677	5,666
Total unrealized loss position	$	2,023,736	30,297	487,570	18,031	2,511,306	48,328

As of March 31, 2022 and December 31, 2021, the Company's security portfolio held 600 securities of which 371 securities were in an unrealized loss position. In the above tables, all of the securities that were in an unrealized loss position at March 31, 2022 and December 31, 2021 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.

At March 31, 2022 and December 31, 2021, the Company determined that expected credit losses associated with held to maturity debt securities was insignificant.

The book values and approximate fair values of investment securities at March 31, 2022, 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.

	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Securities
Due within one year	$	26,102	26,381	436	440
Due after one year but within five years	152,051		151,996	—	—
Due after five years but within ten years	87,703		79,832	17,141	15,988
Due after ten years	1,000		928	509,851	457,366
Mortgage-backed securities	2,632,054		2,425,911	18,662	18,513
Total securities	$	2,898,910	2,685,048	546,090	492,307

At March 31, 2022 and December 31, 2021 investment securities with carrying values of $852.8 million and $951.4 million, respectively, were pledged as collateral for public deposits.

At March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than US Government and its agencies or government sponsored enterprises, in an amount greater than 10% of shareholders equity.

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 $32.2 million and $22.3 million at March 31, 2022 and December 31, 2021, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $5.3 million and $4.6 million at March 31, 2022 and December 31, 2021, 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 $26.8 million and $17.8 million at March 31, 2022 and December 31, 2021, 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.

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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 March 31, 2022 was approximately 1.62, which means the Company would receive approximately 19,993 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.

Note 4 – Loans, Allowance for Credit Losses, and Asset Quality Information

The following is a summary of the major categories of total loans outstanding:

($ in thousands)	March 31, 2022				December 31, 2021
	Amount		Percentage		Amount		Percentage
All  loans:
Commercial, financial, and agricultural	$	603,454	10	%	$	648,997	11	%
Real estate – construction, land development & other land loans	795,886		13	%	828,549		13	%
Real estate – mortgage – residential (1-4 family) first mortgages	1,045,167		17	%	1,021,966		17	%
Real estate – mortgage – home equity loans / lines of credit	329,348		6	%	331,932		5	%
Real estate – mortgage – commercial and other	3,234,949		53	%	3,194,737		53	%
Consumer loans	56,822		1	%	57,238		1	%
Subtotal	6,065,626		100	%	6,083,419		100	%
Unamortized net deferred loan fees	(928)				(1,704)
Total loans	$	6,064,698			$	6,081,715

Included in the line item "Commercial, financial, and agricultural" in the table above are Paycheck Protection Program ("PPP") loans totaling $15.6 million and $39.0 million at March 31, 2022 and December 31, 2021, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $1.3 million and $2.6 million at March 31, 2022 and December 31, 2021, 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.

Included in the table above are credit card balances outstanding totaling $38.8 million and $37.9 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, approximately 57% of total credit card balances are business credit cards included in "commercial, financial and agricultural" above and the remaining 43% are personal credit cards included in consumer loans in the table above.

Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.

($ in thousands)	March 31, 2022		December 31, 2021
Guaranteed portions of non-PPP SBA loans included in table above	$	33,024	48,377
Unguaranteed portions of non-PPP SBA loans included in table above	126,936		122,772
Total non-PPP SBA loans included in the table above	$	159,960	171,149
Sold portions of SBA loans with servicing retained - not included in tables above	$	426,601	414,240

At March 31, 2022 and December 31, 2021, there was a remaining unaccreted discount on the retained portion of sold non-PPP SBA loans amounting to $5.9 million and $6.0 million, respectively.

Loans in the amount of $5.4 billion and $4.3 billion were pledged as collateral for certain borrowings at March 31, 2022 and December 31, 2021, respectively.

Page 12

The loans above also include loans to executive officers and directors serving the Company at March 31, 2022 and to their related persons, totaling approximately $6.5 million and $0.6 million at March 31, 2022 and December 31, 2021, respectively. There were $5.8 million in new loans due to the addition of new directors, there was $36,000 in advances on loans in the first three months of 2022, and repayments amounted to $21,000. The loans were made on terms and conditions applicable to similarly situated borrowers and management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features.

As of March 31, 2022 and December 31, 2021, unamortized discounts on all acquired loans totaled $15.6 million and $17.2 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.

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.

($ in thousands)	March 31, 2022		December 31, 2021
Nonaccrual loans	$	33,460	34,696
TDRs - accruing	12,727		13,866
Accruing loans > 90 days past due	—		1,004
Total nonperforming loans	46,187		49,566
Foreclosed real estate	2,750		3,071
Total nonperforming assets	$	48,937	52,637

At March 31, 2022 and December 31, 2021, the Company had $1.0 million and $1.5 million, respectively, in residential mortgage loans in process of foreclosure, respectively.

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2022.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,911	8,661	12,572
Real estate – construction, land development & other land loans	928		126	1,054
Real estate – mortgage – residential (1-4 family) first mortgages	161		3,559	3,720
Real estate – mortgage – home equity loans / lines of credit	—		807	807
Real estate – mortgage – commercial and other	8,351		6,865	15,216
Consumer loans	—		91	91
Total	$	13,351	20,109	33,460

Page 13

The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2021.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,947	8,205	12,152
Real estate – construction, land development & other land loans	495		137	632
Real estate – mortgage – residential (1-4 family) first mortgages	858		4,040	4,898
Real estate – mortgage – home equity loans / lines of credit	—		694	694
Real estate – mortgage – commercial and other	7,648		8,583	16,231
Consumer loans	—		89	89
Total	$	12,948	21,748	34,696

There was no interest income recognized during the three month period ended March 31, 2022 or the year ended December 31, 2021 on nonaccrual loans. The Company follows its nonaccrual policy of reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status.

The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:

($ in thousands)	For the Three Months Ended March 31, 2022		For the Year Ended December 31, 2021	For the Three Months Ended March 31, 2021
Commercial, financial, and agricultural	$	8	195	64
Real estate – construction, land development & other land loans	12		6	—
Real estate – mortgage – residential (1-4 family) first mortgages	10		31	5
Real estate – mortgage – home equity loans / lines of credit	2		14	4
Real estate – mortgage – commercial and other	100		453	220
Consumer loans	—		—	—
Total	$	132	699	293

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2022.

($ 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	$	389	105	—	12,572	590,388	603,454
Real estate – construction, land development & other land loans	1,492		—	—	1,054	793,340	795,886
Real estate – mortgage – residential (1-4 family) first mortgages	8,739		20	—	3,720	1,032,688	1,045,167
Real estate – mortgage – home equity loans / lines of credit	891		36	—	807	327,614	329,348
Real estate – mortgage – commercial and other	2,294		—	—	15,216	3,217,439	3,234,949
Consumer loans	103		134	—	91	56,494	56,822
Total	$	13,908	295	—	33,460	6,017,963	6,065,626
Unamortized net deferred loan fees							(928)
Total loans							$	6,064,698

Page 14

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2021.

($ 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	$	377	93	—	12,152	636,375	648,997
Real estate – construction, land development & other land loans	4,046		—	286	632	823,585	828,549
Real estate – mortgage – residential (1-4 family) first mortgages	6,571		1,488	—	4,898	1,009,009	1,021,966
Real estate – mortgage – home equity loans / lines of credit	489		124	718	694	329,907	331,932
Real estate – mortgage – commercial and other	164		1,496	—	16,231	3,176,846	3,194,737
Consumer loans	116		62	—	89	56,971	57,238
Total	$	11,763	3,263	1,004	34,696	6,032,693	6,083,419
Unamortized net deferred loan fees							(1,704)
Total loans							$	6,081,715

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. The Company reviews individually evaluated loans on nonaccrual with a net book balance of $350,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $350,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses.

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2022.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	9,508	—	—	9,508
Real estate – construction, land development & other land loans	—		—	928	—	928
Real estate – mortgage – residential (1-4 family) first mortgages	161		—	—	—	161
Real estate – mortgage – commercial and other	—		—	—	11,081	11,081
Total	$	161	9,508	928	11,081	21,678

The following table presents an analysis of collateral-dependent loans of the Company as of December 31, 2021.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	7,886	—	—	7,886
Real estate – construction, land development & other land loans	—		—	533	—	533
Real estate – mortgage – residential (1-4 family) first mortgages	871		—	—	—	871
Real estate – mortgage – commercial and other	—		—	—	10,743	10,743
Total	$	871	7,886	533	10,743	20,033

Page 15

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 which may be undergoing heightened stress due to economic or other external factors, the Company may reduce the collateral values by an additional 10-25% to recognize 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 excess collateral for any of the loan types noted above.

Page 16

The following table presents the activity in the Allowance for Credit Losses ("ACL") on loans for each of the periods indicated.

($ 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 March 31, 2022
Beginning balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789
Charge-offs	(790)		—	—	(41)	(45)	(167)	—	(1,043)
Recoveries	247		137	4	233	155	47	—	823
Provisions / (Reversals)	307		(599)	(531)	(2,455)	6,875	(97)	—	3,500
Ending balance	$	16,013	16,057	8,159	2,074	37,327	2,439	—	82,069

($ 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, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Allowance for acquired PCD loans	2,917		165	222	92	1,489	10	—	4,895
Charge-offs	(3,722)		(245)	(273)	(400)	(2,295)	(667)	—	(7,602)
Recoveries	1,744		948	761	578	533	358	—	4,922
Provisions/(Reversals)	927		4,156	(2,656)	(888)	7,269	803	—	9,611
Ending balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789

($ 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 March 31, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Charge-offs	(1,438)		(66)	(38)	(131)	(510)	(134)	—	(2,317)
Recoveries	514		294	87	11	262	35	—	1,203
Provisions/(Reversals)	147		(1,589)	(1,685)	(526)	3,409	244	—	—
Ending balance	$	13,606	10,134	8,996	4,309	26,507	2,297	—	65,849

Page 17

Credit Quality Indicators

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:

	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.

In the tables that follow, 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 tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition.

Page 18

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of March 31, 2022
Commercial, financial, and agricultural
Pass	$	35,980	177,169	105,179	66,635	62,972	29,478	105,225	582,638
Special Mention	—		125	399	621	2,633	216	2,504	6,498
Classified	119		2,454	1,417	2,136	6,908	577	707	14,318
Total commercial, financial, and agricultural	36,099		179,748	106,995	69,392	72,513	30,271	108,436	603,454
Real estate – construction, land development & other land loans
Pass	113,568		488,287	94,674	59,914	9,256	12,619	9,836	788,154
Special Mention	—		38	726	4,117	107	98	5	5,091
Classified	1,416		148	45	944	71	17	—	2,641
Total real estate – construction, land development & other land loans	114,984		488,473	95,445	64,975	9,434	12,734	9,841	795,886
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	53,280		277,391	206,074	114,970	76,281	290,677	8,318	1,026,991
Special Mention	—		512	448	328	201	3,331	96	4,916
Classified	136		391	480	895	940	9,410	1,008	13,260
Total real estate – mortgage – residential (1-4 family) first mortgages	53,416		278,294	207,002	116,193	77,422	303,418	9,422	1,045,167
Real estate – mortgage – home equity loans / lines of credit
Pass	306		2,258	410	299	1,254	2,244	315,092	321,863
Special Mention	48		187	—	—	—	18	1,112	1,365
Classified	18		163	96	75	—	327	5,441	6,120
Total real estate – mortgage – home equity loans / lines of credit	372		2,608	506	374	1,254	2,589	321,645	329,348
Real estate – mortgage – commercial and other
Pass	275,364		1,315,875	716,571	307,705	184,889	337,011	57,982	3,195,397
Special Mention	521		2,042	4,737	4,849	3,708	3,103	1,340	20,300
Classified	124		4,979	249	2,953	5,910	4,832	205	19,252
Total real estate – mortgage – commercial and other	276,009		1,322,896	721,557	315,507	194,507	344,946	59,527	3,234,949
Consumer loans
Pass	5,115		29,404	6,453	2,313	1,407	923	10,998	56,613
Special Mention	—		—	—	—	—	—	—	—
Classified	—		141	11	1	—	17	39	209
Total consumer loans	5,115		29,545	6,464	2,314	1,407	940	11,037	56,822
Total	$	485,995	2,301,564	1,137,969	568,755	356,537	694,898	519,908	6,065,626
Unamortized net deferred loan fees									(928)
Total loans									6,064,698

Page 19

	Term Loans by Year of Origination
($ in thousands)	2021		2020	2019	2018	2017	Prior	Revolving	Total
As of December 31, 2021
Commercial, financial, and agricultural
Pass	$	204,945	138,540	71,369	66,645	16,009	17,492	112,933	627,933
Special Mention	225		1,255	1,313	2,729	225	9	2,348	8,104
Classified	1,609		793	1,703	7,096	511	96	1,152	12,960
Total commercial, financial, and agricultural	206,779		140,588	74,385	76,470	16,745	17,597	116,433	648,997
Real estate – construction, land development & other land loans
Pass	573,613		133,888	69,066	12,455	9,764	8,190	13,737	820,713
Special Mention	41		737	5,095	110	104	2	9	6,098
Classified	1,541		49	47	83	14	4	—	1,738
Total real estate – construction, land development & other land loans	575,195		134,674	74,208	12,648	9,882	8,196	13,746	828,549
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	241,619		224,617	120,097	82,531	86,074	234,950	11,051	1,000,939
Special Mention	888		615	516	229	323	3,237	94	5,902
Classified	419		156	535	1,185	653	11,246	931	15,125
Total real estate – mortgage – residential (1-4 family) first mortgages	242,926		225,388	121,148	83,945	87,050	249,433	12,076	1,021,966
Real estate – mortgage – home equity loans / lines of credit
Pass	3,111		498	439	1,304	245	1,649	317,319	324,565
Special Mention	194		—	15	—	—	19	1,341	1,569
Classified	75		97	71	—	—	607	4,948	5,798
Total real estate – mortgage – home equity loans / lines of credit	3,380		595	525	1,304	245	2,275	323,608	331,932
Real estate – mortgage – commercial and other
Pass	1,328,156		796,992	355,885	211,118	197,165	197,659	66,104	3,153,079
Special Mention	1,759		4,849	5,801	3,741	2,072	1,801	1,440	21,463
Classified	7,147		413	2,110	6,025	3,897	603	—	20,195
Total real estate – mortgage – commercial and other	1,337,062		802,254	363,796	220,884	203,134	200,063	67,544	3,194,737
Consumer loans
Pass	14,960		25,431	2,965	1,722	673	525	10,810	57,086
Special Mention	—		4	—	—	—	—	—	4
Classified	—		73	—	8	—	25	42	148
Total consumer loans	14,960		25,508	2,965	1,730	673	550	10,852	57,238
Total	$	2,380,302	1,329,007	637,027	396,981	317,729	478,114	544,259	6,083,419
Unamortized net deferred loan fees									(1,704)
Total loans									6,081,715

Page 20

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 TDRs modified during the periods ended March 31, 2022 and March 31, 2021 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness.

The Company’s TDRs can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that are nonaccrual are reported within the nonaccrual loan totals presented previously.

At March 31, 2022 there were two loans with immaterial commitments to lend additional funds to debtors whose loans were modified as a TDR. At December 31, 2021, there were no commitments to lend additional funds to debtors whose loans were modified as a TDR.

The following table presents information related to loans modified in a TDR during the three months ended March 31, 2022 and 2021.

($ in thousands)	For the three months ended March 31, 2022					For the three months ended March 31, 2021
	Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances
TDRs – Accruing
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	—	—		—		1	160		160
TDRs – Nonaccrual
Commercial, financial, and agricultural	1	41		41		1	111		108
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	1	540		540		—	—		—
Total TDRs arising during period	4	$	653	$	653	2	$	271	$	268

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. There were no accruing TDRs that were modified in the previous twelve months and that defaulted during the three months ended March 31, 2022 or 2021.

Concentration of Credit Risk

Most of the Company's business activity is with customers located within the markets where it has banking operations. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy within its markets. Approximately 89% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations.

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. 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 unfunded commitments 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

Page 21

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. The allowance for credit losses for unfunded loan commitments of $12.0 million and $13.5 million at March 31, 2022 and December 31, 2021, respectively, is separately classified on the Consolidated Balance Sheets within "Other liabilities".

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2022.

($ in thousands)	Total Allowance for Credit Losses - Unfunded Loan Commitments
Beginning balance at December 31, 2021	$	13,506
Charge-offs	—
Recoveries	—
Reversal of provision for unfunded commitments	(1,500)
Ending balance at March 31, 2022	$	12,006

Allowance for Credit Losses - Securities Held to Maturity

The allowance for credit losses for securities held to maturity was immaterial at March 31, 2022 and December 31, 2021.

Note 5 – Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of March 31, 2022 and December 31, 2021, and the carrying amount of unamortized intangible assets as of those same dates.

	March 31, 2022			December 31, 2021
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	1,501	2,700	1,386
Core deposit intangibles	29,050		18,972	29,050	18,076
SBA servicing assets	12,677		7,086	11,932	6,460
Other	100		40	100	33
Total	$	44,527	27,599	43,782	25,955
Unamortizable intangible assets:
Goodwill	$	364,263		364,263

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 March 31, 2022 with a remaining book value of $5.6 million. The Company recorded $0.7 million and $0.6 million in new servicing assets associated with the guaranteed portion of SBA loans sold during the first three months of 2022 and 2021, respectively. During the first three months of 2022 and 2021, the Company recorded $0.6 million and $0.5 million, respectively, in related servicing asset amortization expense. At March 31, 2022 and December 31, 2021, the Company serviced SBA loans totaling $426.6 million and $414.2 million, respectively, for others. There were no other loans serviced in any period presented.

Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $1.0 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively.

There were no changes to the carrying amounts of goodwill for the three months ended March 31, 2022.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. The Company performed the required annual impairment testing in the fourth quarter of 2021.

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Management evaluated the events and circumstances in the first quarter of 2022 that could indicate that goodwill might be impaired and concluded that a subsequent interim test was not necessary.

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.

($ in thousands)	Estimated Amortization Expense
April 1, 2022 to December 31, 2022	$	2,666
2023	2,545
2024	1,718
2025	1,358
2026	962
Thereafter	2,088
Total	$	11,337

Note 6 - Borrowings

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2022 and December 31, 2021 (dollars are in thousands):

Description	Due date	Call Feature	March 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	68	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	942		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	222		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	42		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	339		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		3.00% at 03/31/22 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		2.22% at 03/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.24% at 03/31/22 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		3.08% at 03/31/22 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of March 31, 2022			$	71,017	2.56%
Unamortized discount on acquired borrowings			(3,602)
Total borrowings			$	67,415

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Description	Due date	Call Feature	December 31, 2021		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	79	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	952		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	225		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	44		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	342		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		2.83% at 12/31/21 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		1.59% at 12/31/21 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.12% at 12/31/21 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		2.72% at 12/31/21 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of December 31, 2021			$	71,050	2.24%
Unamortized discount on acquired borrowings			(3,664)
Total borrowings			$	67,386

Note 7 – Leases

The Company enters into leases in the normal course of business. As of March 31, 2022, the Company leased 17 branch offices for which the land and buildings are leased and nine 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 April 2022 through May 2076, some of which include options for multiple five- and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.4 years as of March 31, 2022. Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense. 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. The short-term lease cost for each period presented was insignificant.

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 2.88% as of March 31, 2022.

Total operating lease expense was $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively. The right-of-use assets and lease liabilities were $20.4 million and $20.9 million as of March 31, 2022, respectively, and were $20.7 million and $21.2 million as of December 31, 2021, respectively.

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Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2022 are as follows.

($ in thousands)
April 1, 2022 to December 31, 2022	$	1,747
2023	2,360
2024	2,163
2025	1,706
2026	1,685
Thereafter	19,988
Total undiscounted lease payments	29,649
Less effect of discounting	(8,746)
Present value of estimated lease payments (lease liability)	$	20,903

Note 8 – 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 under these plans for service subsequent to 2012.

The Company recorded periodic pension cost totaling $51,000 and $191,000 for the three months ended March 31, 2022 and 2021, respectively. The following table contains the components of the pension cost.

	For the Three Months Ended March 31,
($ in thousands)	2022 Pension Plan		2021 Pension Plan	2022 SERP	2021 SERP	2022 Total Both Plans	2021 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	267		306	28	39	295	345
Expected return on plan assets	(288)		(325)	—	—	(288)	(325)
Amortization of net (gain)/loss	180		210	(136)	(39)	44	171
Net periodic pension cost	$	159	191	(108)	—	51	191

The service cost component of net periodic pension cost is included in salaries and benefits expense and all other components of net periodic pension cost are included in other noninterest expense.

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company did not contribute to the Pension Plan in the first three months of 2022 and does not expect to contribute to the Pension Plan in the remainder of 2022.

The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.

Note 9 – Fair Value

Fair 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.

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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 March 31, 2022.

($ in thousands) Description of Financial Instruments	Fair Value at March 31, 2022		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:
US Treasury	$	149,391	—	149,391	—
Government-sponsored enterprise securities	64,168		—	64,168	—
Mortgage-backed securities	2,425,911		—	2,425,911	—
Corporate bonds	45,578		—	45,578	—
Total available for sale securities	$	2,685,048	—	2,685,048	—
Presold mortgages in process of settlement	$	5,672	5,672	—	—
Nonrecurring
Individually evaluated loans	$	12,590	—	—	12,590

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2021.

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 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	$	69,179	—	69,179	—
Mortgage-backed securities	2,514,805		—	2,514,805	—
Corporate bonds	46,430		—	46,430	—
Total available for sale securities	$	2,630,414	—	2,630,414	—
Presold mortgages in process of settlement	$	19,257	19,257	—	—
Nonrecurring
Individually evaluated loans	$	11,583	—	—	11,583
Foreclosed real estate	364		—	—	364

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

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benchmark quoted securities. For the Company, Level 2 securities include U.S. Treasury bonds, 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.

Collateral-dependent loans — Fair values for collateral-dependent loans are measured on a non-recurring basis and are based on (1) the underlying collateral values securing the loans, adjusted for estimated selling costs, or (2) 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 credit 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 March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at March 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	6,909	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	5,681		PV of expected cash flows	Discount rates used in the calculation of the present value ("PV") of expected cash flows	4%-11% (6.50%)

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at December 31, 2021		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	7,326	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	4,257		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	4%-11% (6.22%)
Foreclosed real estate	364		Appraised value	Discounts applied for estimated costs to sell	10%

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2022 and December 31, 2021 are as follows:

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		March 31, 2022			December 31, 2021
($ 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	$	124,785	124,785	128,228	128,228
Due from banks, interest-bearing	Level 1	440,974		440,974	332,934	332,934
Securities held to maturity	Level 2	546,090		492,307	513,825	511,699
SBA and other loans held for sale	Level 2	3,630		4,010	61,003	62,044
Total loans, net of allowance	Level 3	5,982,629		5,957,829	6,002,926	5,990,235
Accrued interest receivable	Level 1	24,728		24,728	25,896	25,896
Bank-owned life insurance	Level 1	164,273		164,273	165,786	165,786
SBA Servicing Asset	Level 3	5,591		5,667	5,472	5,546
Deposits	Level 2	9,385,147		9,382,240	9,124,629	9,124,701
Borrowings	Level 2	67,415		59,593	67,386	61,295
Accrued interest payable	Level 2	576		576	607	607

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.

Note 10 – Stock-Based Compensation

The Company recorded total stock-based compensation expense of $547,000 and $397,000 for the three months ended March 31, 2022 and 2021, respectively. In addition, the Company recognized $126,000 and $91,000 of income tax benefits related to stock-based compensation expense for the three months ended March 31, 2022 and 2021, respectively.

At March 31, 2022, 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 March 31, 2022, the Equity Plan had 431,852 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 stock, restricted performance stock, unrestricted stock, and performance units.

Recent equity awards to employees have been made in the form of shares of restricted stock awards with service 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.

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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.

In addition to employee equity awards, the Company's practice is to grant common shares, valued at approximately $32,000, to each non-employee director (currently 13 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.

The following table presents information regarding the activity for the first three months of 2022 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	206,331	$	35.25
Granted during the period	20,494	45.88
Vested during the period	(6,997)	36.05
Forfeited or expired during the period	(7,115)	31.50
Nonvested at March 31, 2022	212,713	$	36.33

Total unrecognized compensation expense as of March 31, 2022 amounted to $4.2 million with a weighted-average remaining term of 2.3 years. For the nonvested awards that are outstanding at March 31, 2022, the Company expects to record $2.1 million in compensation expense in the next twelve months, $1.6 million of which is expected to be recorded in the remaining quarters of 2022.

Note 11 - Shareholders' Equity

Stock Repurchases

During the first three months of 2022, the Company did not repurchase any shares of the Company's common stock.

During the first three 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 in January 2021.

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Note 12 – Earnings Per Share

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share ("EPS"):

	For the Three Months Ended March 31,
	2022					2021
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	33,969				$	28,194
Less: income allocated to participating securities	(198)					(178)
Basic EPS per common share	$	33,771	35,433,739	$	0.95	$	28,016	28,357,809	$	0.99
Diluted EPS:
Net income	$	33,969	35,433,739			$	28,194	28,357,809
Effect of Dilutive Securities	—		207,239			—		180,044
Diluted EPS per common share	$	33,969	35,640,978	$	0.95	$	28,194	28,537,853	$	0.99

Note 13 – Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive loss for the Company are as follows:

($ in thousands)	March 31, 2022		December 31, 2021
Unrealized loss on securities available for sale	$	(213,862)	(32,067)
Deferred tax asset	49,145		7,369
Net unrealized loss on securities available for sale	(164,717)		(24,698)
Postretirement plans liability	(309)		(353)
Deferred tax asset	71		81
Net postretirement plans liability	(238)		(272)
Total accumulated other comprehensive loss	$	(164,955)	(24,970)

The following table discloses the changes in accumulated other comprehensive loss for the three months ended March 31, 2022 (all amounts are net of tax).

($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2022	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(140,019)		—	(140,019)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current-period other comprehensive (loss) income	(140,019)		34	(139,985)
Ending balance at March 31, 2022	$	(164,717)	(238)	(164,955)

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The following table discloses the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2021	$	15,749	(1,399)	14,350
Other comprehensive loss before reclassifications	(18,666)		—	(18,666)
Amounts reclassified from accumulated other comprehensive income	—		131	131
Net current-period other comprehensive (loss) income	(18,666)		131	(18,535)
Ending balance at March 31, 2021	$	(2,917)	(1,268)	(4,185)

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.

Note 14 – 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 months ended March 31, 2022 and 2021. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended
($ in thousands)	March 31, 2022		March 31, 2021
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts:	$	3,541	2,733
Other service charges, commissions, and fees:
Interchange income	4,711		3,524
Other service charges and fees	2,263		1,998
Commissions from sales of insurance and financial products:
Insurance income	—		1,326
Wealth management income	945		864
SBA consulting fees	780		2,764
Noninterest income (in-scope of ASC 606)	12,240		13,209
Noninterest income (out-of-scope of ASC 606)	7,011		7,460
Total noninterest income	$	19,251	20,669

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.

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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 wealth management products and also earned commissions from the sale of insurance policies until the sale of First Bank Insurance Services on June 30, 2021.

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.

Insurance income, which was earned by the Company until June 30, 2021, generally consisted of commissions from the sale of insurance policies and performance-based commissions from insurance companies. The Company recognized commission income from the sale of insurance policies when it acted 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 recognized the revenue. Performance-based commissions from insurance companies were recognized at a point in time as policies are sold.

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.

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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Item 2 - Management's Discussion and Analysis of Consolidated Results of Operations and Financial Condition

Overview and Highlights at and for Three Months Ended March 31, 2022

The Company earned net income of $34.0 million, or $0.95 diluted EPS, during the three months ended March 31, 2022 compared to net income of $28.2 million, or $0.99 diluted EPS, for the three months ended March 31, 2021. The main drivers to the increase in net income are presented below. Refer also to additional discussion in the Results of Operations section following.

•On October 15, 2021 we acquired Select Bancorp, Inc. ("Select") which was headquartered in Dunn, North Carolina and which contributed total assets of $1.8 billion, total loans of $1.3 billion, and total deposits of $1.6 billion as of the acquisition date. As such, comparisons for the financial periods presented are impacted by our acquisition of Select.

•Net interest income for the first quarter of 2022 was $76.9 million, a 39.2% increase from the $55.2 million recorded in the first quarter of 2021. The increase in net interest income from the prior year period was driven by higher earning assets related to both the Select acquisition and organic growth, offset somewhat by a reduction in net interest margin ("NIM").

•For the three months ended March 31, 2022, the Company recorded a provision for credit losses of $3.5 million based on changes in the loan portfolio and economic forecasts, and a reversal of the provision for unfunded commitments of $1.5 million related to fluctuations in the levels and mix of outstanding loans commitments. No provision for credit losses or unfunded commitments was required in the comparable period of 2021, which was the first quarter we adopted CECL.

•Noninterest income declined $1.4 million, or 6.9%, from the prior year period primarily due to a $3.4 million decrease in mortgage banking income related to lower levels of activity, a $2.0 million decrease in SBA consulting fees due to lower PPP-related revenues, and a $1.2 million decrease in commissions on sales of financial and insurance products due to the sale of substantially all of the assets of our property and casualty insurance agency subsidiary in June 2021. Reductions in noninterest income were substantially offset by higher levels of transactions and number of accounts generating service charge income and bankcard revenue.

•Noninterest expense increased $11.4 million, or 28.5% for the quarter ended March 31, 2022 as compared to the prior year. Included in the March 31, 2022 quarter was $3.5 million in merger and acquisition expenses primarily related to computer system conversion costs. The balance of the increase in noninterest expenses was driven by higher operating expenses resulting from the Select acquisition.

•Income tax expense increased $1.0 million relative to the higher pre-tax income. The effective tax rates were 20.4% and 21.3% for the first quarter of 2022 and 2021, respectively. The lower effective tax rate in the first quarter of 2022 was related to higher tax exempt income in that quarter relative to taxable income.

Total assets at March 31, 2022 amounted to $10.7 billion, a 1.4% increase from December 31, 2021. The primary balance sheet changes are presented below. Refer also to additional discussion in the Financial Condition section following.

•Total loans amounted to $6.1 billion at March 31, 2022, a decrease of $17.0 million, or 0.28% from year end due primarily to reductions in PPP loans through forgiveness which more than offset organic growth during the first quarter of 2022.

•Total investment securities increased $86.9 million from December 31, 2021 to a total of $3.2 billion at March 31, 2022, as the Company deployed excess liquidity during the period.

•Total deposits amounted to $9.4 billion at March 31, 2022, an increase of $260.5 million, or 2.9%, from December 31, 2021. The high core deposit growth is believed to be due to a combination of stimulus funds and changes in customer behaviors during the pandemic, as well as our ongoing growth and retention initiatives.

•We remain well-capitalized by all regulatory standards with a total common equity Tier 1 ratio of 12.85% and total risk-based capital ratio of 14.99%.

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•Accumulated other comprehensive loss increased $140.0 million related to higher unrealized losses on available for sale securities due to increased market rates experienced in the first quarter of 2022.

Impact of COVID-19

Our market areas and local economies continue to show signs of recovery from the impact of the COVID-19 pandemic, However, the current pandemic is ongoing and dynamic in nature, and there are many related uncertainties, including, among other things, its severity and new variants that may arise; its ultimate duration and infection spikes that may occur; the impact on our customers, employees and vendors; the impact on the financial services and banking industry; and the ongoing impact on the economy as a whole.

Our financial position and results of operations are particularly susceptible to the ability of our loan customers to meet loan obligations, the availability of our workforce, the availability of our vendors and supply chain issues, and the decline in the value of assets held by us. The impact of the COVID-19 pandemic lessened in 2021, and we experienced increased commercial activity throughout our market areas. We have not realized significant negative impact on our loan portfolio or asset quality. Further, all COVID-19 deferral status loans have returned to regular payment schedules. While the economic pressures and uncertainties arising from the COVID-19 pandemic have resulted in, and may continue to result in, specific changes in consumer and business spending and borrowing habits, we have seen improvements in many industries in which we have loan exposure including retail/strip centers, hotels/lodging, restaurants, entertainment, and commercial real estate.

The ongoing impact on the Company of the continuing pandemic is uncertain. 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.

Critical Accounting Policies and Estimates

The accounting principles we follow and our methods of applying these principles conform with GAAP and with general practices followed by the banking industry. Certain of these principles involve a significant amount of judgment and may involve the use of estimates based on our best assumptions at the time of the estimation. We have identified the accounting policies discussed below as being more sensitive in terms of judgments and estimates taking into account their overall potential impact to our consolidated financial statements.

Allowance for Credit Losses on Loans and Unfunded Commitments

The ACL represents management’s current estimate of credit losses for the remaining estimated life of financial instruments. We perform periodic and systematic detailed reviews of the loan portfolio to identify trends and to assess the overall collectability of the portfolio. We believe the accounting estimate related to the ACL is a “critical accounting estimate” as: (1) changes in it can materially affect the provision for credit losses and net income; (2) it requires management to predict borrowers’ likelihood or capacity to repay, including evaluation of inherently uncertain future economic conditions; (3) the value of underlying collateral must be estimated on collateral-dependent loans; (4) prepayment activity must be projected to estimate the life of loans that often are shorter than contractual terms; and (5) it requires estimation of a reasonable and supportable forecast period for credit losses. Accordingly, this is a highly subjective process and requires significant judgment since it is difficult to evaluate current and future economic conditions in relation to an overall credit cycle and estimate the timing and extent of loss events that are expected to occur prior to end of a loan’s estimated life.

Our ACL is assessed at each balance sheet date and adjustments are recorded in the provision for credit losses. The ACL is estimated based on loan level characteristics using historical loss rates, a reasonable and supportable economic forecast, and assumptions of probability of default and loss given default. Loan balances considered uncollectible are charged-off against the ACL. There are many factors affecting the ACL, some of which are quantitative, while others require qualitative judgment. Although management believes its process for determining the ACL adequately considers all the potential factors that could potentially result in credit losses, the process includes subjective elements and is susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provision for credit losses could be required that could adversely affect our earnings or financial position in future periods.

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Purchased credit deteriorated ("PCD") loans represent assets that are acquired with evidence of more than insignificant credit quality deterioration since origination as of the acquisition date. At acquisition, the allowance for credit losses on PCD assets is booked directly to the ACL. Any subsequent changes in the ACL on PCD assets is recorded through the provision for credit losses.

We believe that the ACL is adequate to absorb the expected life of loan credit losses on the portfolio of loans as of the balance sheet date. Actual losses incurred may differ materially from our estimates.

We estimate expected credit losses on commitments to extend credit over the contractual period in which we are exposed to credit risk on the underlying commitments, unless the obligation is unconditionally cancellable. The allowance for off-balance sheet credit exposures, which is included in "Other liabilities" on the Consolidated Balance Sheets, is adjusted for as an increase or decrease to the provision for unfunded commitments. 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 methodology is based on a loss rate approach that starts with the probability of funding based on historical experience. Similar to methodology discussed above related to the loans receivable portfolio, adjustments are made to the historical losses for current conditions and reasonable and supportable forecast.

Goodwill and Other Intangible Assets

We believe that the accounting for goodwill and other intangible assets also involves a higher degree of judgment than most other significant accounting policies. Accounting Standards Codification 350-10 establishes standards for the amortization of acquired intangible assets, generally over the estimated useful life of the related assets, and impairment assessment of goodwill. At March 31, 2022, we had core deposit and other intangibles of $16.9 million subject to amortization and $364.3 million of goodwill, which is not subject to amortization.

Goodwill arising from business combinations represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. At each reporting date between annual goodwill impairment tests, we consider potential indicators of impairment. During 2022 there were no triggers warranting interim impairment assessments and for the 2021 annual assessment, we concluded that it was more likely than not that the fair value exceeded its carrying value.

The primary identifiable intangible asset we typically record in connection with a whole bank or bank branch acquisition is the value of the core deposit intangibles which represent the estimated value of the long-term deposit relationships acquired in the transaction. Determining the amount of identifiable intangible assets and their average lives involves multiple assumptions and estimates and is typically determined by performing a discounted cash flow analysis, which involves a combination of any or all of the following assumptions: customer attrition/runoff, alternative funding costs, deposit servicing costs, and discount rates. The core deposit intangibles are amortized over the estimated useful lives of the deposit accounts based on a method that we believe reasonably approximates the anticipated benefit stream from this intangible. The estimated useful lives are periodically reviewed for reasonableness and have generally been estimated to have a life ranging from seven to ten years, with an accelerated rate of amortization. We review identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our policy is that an impairment loss is recognized, equal to the difference between the asset’s carrying amount and its fair value, if the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Estimating future cash flows involves the use of multiple estimates and assumptions, such as those listed above.

Current Accounting Matters

See Note 2 to the Consolidated Financial Statements for information about recently announced or adopted accounting standards.

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RESULTS OF OPERATIONS

Net Interest Income

Net interest income is our largest source of revenue and is the difference between the interest earned on interest-earning assets (generally loans and investment securities) and the interest expense incurred in connection with interest-bearing liabilities (generally deposits and borrowed funds). Changes in the net interest income are the result of changes in volume and the net interest spread which affects NIM. Volume refers to the average dollar levels of interest-earning assets and interest-bearing liabilities. Net interest spread refers to the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. NIM refers to net interest income divided by average interest-earning assets and is influenced by the level and relative mix of interest-earning assets and interest-bearing liabilities. Net interest income is also influenced by external factors such as local economic conditions, competition for loans and deposits, and market interest rates.

Net interest income for the three months ended March 31, 2022 amounted to $76.9 million, an increase of $21.6 million, or 39.2%, from the $55.2 million recorded in the first quarter of 2021. Net interest income on a tax-equivalent basis for the three month period ended March 31, 2022 amounted to $77.6 million, an increase of $21.9 million, or 39.3%, from the $55.7 million recorded in the first quarter of 2021. For internal purposes, we evaluate our NIM on a tax-equivalent basis by adding the tax benefit realized from tax-exempt loans and securities to reported interest income then dividing by total average earning assets. We believe that analysis of NIM on a tax-equivalent basis is useful and appropriate because it allows a comparison of net interest in different periods without taking into account the different mix of taxable versus non-taxable loans and investments that may have existed during those periods.

The following table presents an analysis of net interest income.

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Average Balances and Net Interest Income Analysis
	For the Three Months Ended March 31,
	2022						2021
($ in thousands)	Average Volume		Average Rate		Interest Earned or Paid		Average Volume		Average Rate		Interest Earned or Paid
Assets
Loans (1) (2)	$	6,051,487	4.30	%	$	64,202	$	4,684,143	4.42	%	$	51,073
Taxable securities	2,995,377		1.79	%	13,210		1,652,834		1.45	%	5,913
Non-taxable securities	288,468		1.47	%	1,048		67,196		1.95	%	323
Short-term investments, primarily interest-bearing cash	478,861		0.55	%	649		494,233		0.57	%	700
Total interest-earning assets	9,814,193		3.27	%	79,109		6,898,406		3.41	%	58,009
Cash and due from banks	115,748						80,898
Premises and equipment	135,990						121,798
Other assets	498,488						376,724
Total assets	$	10,564,419					$	7,477,826
Liabilities
Interest-bearing checking	$	1,576,323	0.06	%	$	224	$	1,203,942	0.09	%	$	266
Money market deposits	2,606,133		0.13	%	853		1,650,387		0.23	%	918
Savings deposits	721,911		0.06	%	108		538,781		0.10	%	130
Time deposits >$100,000	581,979		0.30	%	430		555,180		0.63	%	858
Other time deposits	298,570		0.21	%	156		224,045		0.39	%	216
Total interest-bearing deposits	5,784,916		0.12	%	1,771		4,172,335		0.68	%	2,388
Borrowings	67,381		2.77	%	460		61,405		2.53	%	383
Total interest-bearing liabilities	5,852,297		0.15	%	2,231		4,233,740		0.27	%	2,771
Noninterest-bearing checking	3,435,437						2,301,780
Other liabilities	66,563						57,116
Shareholders’ equity	1,210,122						885,190
Total liabilities and shareholders’ equity	$	10,564,419					$	7,477,826
Net yield on interest-earning assets and net interest income			3.18	%	$	76,878			3.25	%	$	55,238
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			3.21	%	$	77,575			3.27	%	$	55,681
Interest rate spread			3.17	%					3.14	%
Average prime rate			3.29	%					3.25	%

(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and deferred loan fee amortization (including deferred PPP fees), in the amounts of $1.4 million, and $3.4 million for three months ended March 31, 2022 and 2021, respectively.

(2) Includes accretion of discount on acquired and SBA loans of $2.3 million and $1.3 million for three months ended March 31, 2022 and 2021, respectively.

(3)   Includes tax-equivalent adjustments of $697,000 and $443,000 for three months ended March 31, 2022 and 2021, respectively, to reflect the tax benefit that we receive related to tax-exempt securities and tax-exempt loans, which carry interest rates lower than similar taxable investments/loans due to their tax exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

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Overall, as demonstrated in the table above, net interest income grew $21.6 million for the three months ended March 31, 2022 from the comparable period of the prior year. Higher earning asset volumes, from both organic growth and the Select acquisition, and lower rates on interest-bearing liabilities, which were partially offset by lower yields on interest-earning assets, drove the increase.

•Average loan volumes for the three months ended March 31, 2022 were $1.4 billion higher than the same period in 2021. Higher volumes were partially offset by lower interest rates on loans related to the general low market rate environment, resulting in an increase in loan interest income of $13.1 million.

•Higher average volume of $1.6 billion on total securities resulted in an increase of $8.0 million in interest income for the three months ended March 31, 2022 when compared to the same period in 2021. Also contributing to the increase in interest income was the higher yields on the portfolio as reinvestment rates increased between the periods.

•Lower interest rates paid on deposits drove a $0.6 million decrease in deposit interest expense for the three months ended March 31, 2022 compared to the same period in 2021. Reductions in rates on deposits more than offset the $1.6 billion increase in average volume for total interest-bearing deposits.

•The reduction in NIM was in large part a result of general low market rate environment through most of 2021 and the shift of earning asset mix to lower yielding investment securities from loans as excess liquidity was deployed to securities.

Our NIM for all periods benefited from the net accretion income, primarily associated with purchase accounting premiums/discounts associated with acquisitions. Presented in the table below is the amount of accretion which increased net interest income in each year.

	Three Months Ended March 31,
($ in thousands)	2022		2021
Interest income – increased by accretion of loan discount on acquired loans	$	1,671	752
Interest income - increased by accretion of loan discount on retained SBA loans	667		589
Total interest income impact	2,338		1,341
Interest expense – reduced by premium amortization of deposits	234		15
Interest expense – increased by discount accretion of borrowings	(73)		(44)
Total net interest expense impact	161		(29)
Total impact on net interest income	$	2,499	1,312

The increase in loan discount accretion on purchased loans for the first quarter of 2022 as compared to the prior year was driven by the loans acquired from Select in the fourth quarter of 2021. Generally the level of loan discount accretion will decline each year due to the natural paydowns in acquired loan portfolios. At March 31, 2022 and 2021, unaccreted loan discount on purchased loans amounted to $15.6 million and $12.7 million, respectively.

In addition to the loan discount accretion recorded on acquired loans, we record accretion on the discounts associated with the retained unguaranteed portions of SBA loans sold in the secondary market. The level of SBA loan discount accretion will vary relative to fluctuations in the SBA loan portfolio. At March 31, 2022 and 2021, unaccreted loan discount on SBA loans amounted to $5.9 million and $7.1 million, respectively.

Amortization of net deferred loan fees also impacts interest income. During the first quarter of 2022, we amortized net deferred PPP fees of $1.3 million as interest income compared to $3.0 million for the first quarter of 2021. At March 31, 2022, we had $1.3 million in remaining deferred PPP origination fees that will be recognized over the lives of the loans, with accelerated amortization expected to result from the loan forgiveness process. We expect substantially all of these fees will be recognized in the second quarter of 2022 as a result of the loan forgiveness process.

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Provision for Credit Losses and Provision for Unfunded Commitments

The provisions for credit losses represents our current estimate of life of loan credit losses in the loan portfolio and unfunded loan commitments. Our estimate of credit losses is determined using a complex model that relies on reasonable and supportable forecasts and historical loss information to determine the balance of the ACL and resulting provision for credit losses. The provision for unfunded commitments represents expected losses on unfunded loan commitments that are expected to result in outstanding loan balances. The allowance for unfunded commitments is included in "Other liabilities" in the Consolidated Balance Sheets.

The provision for credit losses of $3.5 million for the three months ended March 31, 2022 was based on changes in the loan portfolio and updated economic forecasts, and is compared to no provision for the three months ended March 31, 2021. The amount of provision recorded in each period was the amount required such that the total ACL reflected the appropriate balance as determined under CECL. We recorded a reversal of provision for unfunded commitments for the three months ended March 31, 2022 totaling $1.5 million related primarily to the fluctuations in the levels and mix of outstanding loan commitments. There was no provision for unfunded commitments for the three months ended March 31, 2021.

Additional discussion of our asset quality and credit metrics, which impact our provision for credit losses, is provided in the "Nonperforming Assets" and "Allowance for Credit Losses and Loan Loss Experience" sections following.

Noninterest Income

Our noninterest income amounted to $19.3 million and $20.7 million for the three months ended March 31, 2022 and 2021, respectively. Included in noninterest income was nonrecurring amounts totaling $1.6 million in other gains and $34,000 in other losses for the three months ended March 31, 2022 and 2021, respectively. The following table presents the primary components of noninterest income.

	For the Three Months Ended March 31,
($ in thousands)	2022		2021
Service charges on deposit accounts	$	3,541	2,733
Other service charges, commissions and fees - net bankcard interchange	4,711		3,523
Other service charges, commissions, and fees - other	2,294		1,999
Fees from presold mortgage loans	1,121		4,544
Commissions from sales of insurance and financial products	945		2,190
SBA consulting fees	780		2,764
SBA loan sale gains	3,261		2,330
Bank-owned life insurance ("BOLI") income	976		620
Other gains (losses), net	1,622		(34)
Noninterest income	$	19,251	20,669

Service charges on deposit accounts increased $0.8 million, or 30%, for the three months ended March 31, 2022 as compared to the three months ended March 31, 2021. The increase was driven by the higher number of new customers and transaction accounts generating fees from both organic growth and the Select acquisition.

Other service charges, commissions and fees - net bankcard interchange represents interchange income from debit and credit card transactions, net of associated interchange expense, and totaled $4.7 million for the three months ended March 31, 2022, a 34% increase from the $3.5 million for the three months ended March 31, 2021. The growth in card usage by our customers is related to the higher volume of outstanding cards giving rise to increased transaction volume as well as customer payment preferences. Because the Company exceeded $10 billion in total assets at December 31, 2021, it is expected that bankcard revenue will be adversely impacted by the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 limit on debit card interchange fees beginning July 1, 2022.

Other service charges, commissions and fees - other includes items such as SBA guarantee servicing fees, ATM charges, wire transfer fees, safety deposit box rentals, fees from sales of personalized checks, and check cashing fees. The increase in this line item for the three months ended March 31, 2022 compared to the three months ended

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March 31, 2021 of $0.3 million, or 15%, was primarily due to growth in the number of accounts and related transaction activity, as well as the Bank's deposit base increases.

Fees from presold mortgages amounted to $1.1 million for the three months ended March 31, 2022, a decline of $3.4 million, or 75%, from the same time period in 2021. The decrease was due to the general decline in home mortgage refinancings and new originations during 2022 as compared to the prior year.

Commissions from sales of insurance and financial products amounted to $0.9 million for the three months ended March 31, 2022, down $1.2 million from the same period in 2021. The decrease is due to the sale of the majority of the assets of our property and casualty insurance subsidiary in June 2021.

The reduction in SBA consulting services for the three months ended March 31, 2022, compared to the same period in 2021 of $2.0 million, or 72%, is directly related to the wind-down of the PPP loan program and lower related revenues earned in the current period. SBA loan sale gains were up $0.9 million, or 40%, for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 relating to the timing of sales and the volume of originated loans available to be sold in each period.

The increase in BOLI income for the three months ended March 31, 2022, compared to the same period in 2021, of $0.4 million was related to the acquisition of Select which contributed $31.0 million in BOLI as of the date of acquisition.

Other gains (losses), net amounted to a net gain of $1.6 million for the three months ended March 31, 2022 due primarily to death benefits realized on BOLI policies.

Noninterest Expenses

Total noninterest expenses totaled $51.5 million and $40.1 million for the three months ended March 31, 2022 and 2021, respectively. Included in noninterest expense was nonrecurring merger and acquisition costs totaling $3.5 million for the three months ended March 31, 2022. There were no merger costs for the comparable period of 2021. The following table presents the primary components of noninterest expense.

	For the Three Months Ended March 31,
($ in thousands)	2022		2021
Salaries	$	23,454	$	20,131
Employee benefits	5,578		4,574
Total personnel expense	29,032		24,705
Occupancy expense	3,384		2,904
Equipment related expenses	1,304		1,045
Merger and acquisition expenses	3,484		—
Amortization of intangible assets	1,017		897
Credit card rewards and other expenses	1,243		1,076
Telephone and data lines	935		751
Software costs	1,574		1,207
Data processing expense	2,101		1,343
Advertising and marketing expense	911		610
Foreclosed property (gains) losses, net	(80)		157
Non-credit losses	602		185
Other operating expenses	5,958		5,185
Total	$	51,465	$	40,065

In general, the increase in noninterest expenses was driven by higher operating expenses from personnel, locations, number of accounts, and higher level of activity resulting from the Select acquisition completed in the fourth quarter of 2021. Merger and acquisition expenses amounted to $3.5 million for the three months ended March 31, 2022 primarily related to computer system conversion costs.

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Total personnel expense increased from $24.7 million for the three months ended March 31, 2021 to $29.0 million for the three months ended March 31, 2022, an increase of $4.3 million, or 18%. Within personnel expense, total compensation increased $3.3 million, or 16.5% primarily related to the incremental number of associates from the Select acquisition, combined with regular annual salary increases. Employee benefits expense increased $1.0 million, or 22% relative to the higher salaries and other compensation expense combined with higher insurance claims in the first quarter of 2022 compared to the prior year.

Income Taxes

We recorded income tax expense of $8.7 million for the three months ended March 31, 2022 and $7.6 million for the three months ended March 31, 2021. Our effective tax rates declined to 20.4% from 21.3% for the three months ended March 31, 2022 and 2021, respectively. The lower effective tax rate in the first quarter of 2022 was related to higher tax-exempt income in that quarter relative to taxable income.

FINANCIAL CONDITION

Total assets at March 31, 2022 amounted to $10.7 billion, a 1.4% increase from December 31, 2021. Total loans at March 31, 2022 amounted to $6.1 billion, a 0.3% decrease from December 31, 2021, and total deposits amounted to $9.4 billion, a 2.9% increase from December 31, 2021.

For the first three months of 2022, loans declined $17.0 million, or 0.3%, related primarily to forgiveness of PPP loans offsetting core growth, which is historically slower in the first quarter of the year. We did experience growth in our commercial real estate and 1-4 family first mortgage categories and expect to experience continued organic growth during the remainder of 2022. The mix of our loan portfolio remained substantially the same at March 31, 2022 compared to December 31, 2021. The majority of our real estate loans were personal and commercial loans where real estate provides additional security for the loan. Note 4 to the consolidated financial statements presents additional detailed information regarding our mix of loans.

For the three month period ended March 31, 2022, we continued to experience growth in our deposit base, with total deposits increasing by $260.5 million, or 2.9% from December 31, 2021. Deposit growth was primarily in transaction accounts (checking, money market and savings), which we believe to be related to our ongoing deposit growth initiatives, as well as stimulus funds and changes in customer behaviors remaining from the pandemic. We routinely engage in activities designed to grow and retain deposits, such as (1) emphasizing relationship banking to new and existing customers, where borrowers are encouraged and normally expected to maintain deposit accounts with us, (2) pricing deposits at rate levels that will attract and/or retain deposits, and (3) continually working to identify and introduce new products that will attract customers or enhance our appeal as a primary provider of financial services.

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Nonperforming Assets

Nonperforming assets include nonaccrual loans, TDRs, loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows:

$ in thousands	As of/for the quarter ended March 31, 2022			As of/for the quarter ended December 31, 2021
Nonperforming assets
Nonaccrual loans	$	33,460		34,696
TDRs – accruing	12,727			13,866
Accruing loans >90 days past due	—			1,004
Total nonperforming loans	46,187			49,566
Foreclosed real estate	2,750			3,071
Total nonperforming assets	$	48,937		52,637
Asset Quality Ratios
Nonaccrual loans to total loans	0.55		%	0.57	%
Nonperforming loans to total loans	0.76		%	0.82	%
Nonperforming assets to total loans and foreclosed properties	0.81		%	0.87	%
Nonperforming assets to total assets	0.46		%	0.50	%
Allowance for credit losses to nonaccrual loans	245.27		%	227.08	%

As shown in the table above, nonperforming assets decreased from December 31, 2021 to March 31, 2022, which was primarily driven by the decrease in TDRs, decrease in accruing loans past due 90 days or more which were directly related to the Select acquisition, and the reduction in foreclosed properties.

We have reviewed the collateral for our nonperforming assets, including nonaccrual loans, and have included this review among the factors considered in the evaluation of the allowance for credit losses discussed below.

At March 31, 2022, total nonaccrual loans amounted to $33.5 million, compared to $34.7 million at December 31, 2021. "Real estate-mortgage-commercial and other" is the largest category of nonaccruals loans, at $15.2 million, or 45% of total nonaccrual loans, followed by "Commercial, financial, and agricultural" at $12.6 million, or 38% of total nonaccrual loans. Included in those categories are nonaccrual SBA loans totaling $18.0 million at March 31, 2022, or 54% of total nonaccrual loans, that have $7.4 million in guarantees from the SBA.

TDRs are accruing loans for which we have granted concessions to the borrower as a result of the borrower’s financial difficulties. At March 31, 2022, total accruing TDRs amounted to $12.7 million, compared to $13.9 million at December 31, 2021, with the decrease being attributed to one large commercial TDR paying off during the period.

As reflected in Note 4 to the financial statements, total classified loans were relatively flat at $55.8 million at March 31, 2022 compared to $56.0 million at December 31, 2021. Special mention loans decreased from $43.1 million at December 31, 2021 to $38.2 million at March 31, 2022.

Total foreclosed real estate amounted to $2.8 million at March 31, 2022 and $3.1 million at December 31, 2021. Our foreclosed property balances have generally been decreasing as a result of sales activity during the periods and favorable overall asset quality. During the first quarter of 2022, we recorded sales of three foreclosed properties partially offset by the addition of one foreclosed property. We believe that the fair values of foreclosed real estate, less estimated costs to sell, equal or exceed their respective carrying values at the dates presented.

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The following table presents the detail of all of our foreclosed real estate at each period end:

($ in thousands)	At March 31, 2022		At December 31, 2021
Vacant land and farmland	$	103	104
1-4 family residential properties	911		1,231
Commercial real estate	1,736		1,736
Total foreclosed real estate	$	2,750	3,071

Allowance for Credit Losses and Loan Loss Experience

Our ACL is based on the total amount of loan losses that are expected over the remaining life of the loan portfolio. Our estimate of credit losses on loans is determined using a complex model, based primarily on the utilization of discounted cash flows, that relies on reasonable and supportable forecasts and historical loss information to determine the balance of the allowance for credit losses and resulting provision for credit losses.

We recorded $3.5 million provision for credit losses on loans in the first quarter of 2022 compared to no provision in the first quarter of 2021, which was the first quarter of our adoption of CECL. The higher provision in 2022 was primarily related to changes in the loan portfolio and updated economic forecasts.

We have no foreign loans, few agricultural loans and do not engage in significant lease financing or highly leveraged transactions. Commercial loans are diversified among a variety of industries. The majority of our real estate loans are primarily personal and commercial loans where real estate provides additional security for the loan. Collateral for virtually all of these loans is located within our principal market area.

For the periods indicated, the following table summarizes our balances of loans outstanding, average loans outstanding, allowance for credit losses, charge-offs and recoveries, and key ratios.

Loan Ratios, Loss and Recovery Experience
($ in thousands)	Three Months Ended March 31, 2022			Twelve Months Ended December 31, 2021			Three Months Ended March 31, 2021
Loans outstanding at end of period	$	6,064,698		6,081,715			4,624,054
Average amount of loans outstanding	6,051,487			5,018,391			4,684,143
Allowance for credit losses, at period end	82,069			78,789			65,849
Total charge-offs	(1,043)			(7,602)			(2,317)
Total recoveries	823			4,922			1,203
Net charge-offs	$	(220)		$	(2,680)		$	(1,114)
Ratios:
Net charge-offs as a percent of average loans (annualized)	0.01		%	0.05		%	0.10		%
Allowance for credit losses as a percent of loans at end of period	1.35		%	1.30		%	1.42		%
Recoveries of loans previously charged-off as a percent of loans charged-off	78.91		%	64.75		%	51.92		%

In addition to the allowance for credit losses on loans, we maintain an allowance for lending-related commitments such as unfunded loan commitments. We estimate expected credit losses associated with these commitments over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for unfunded commitments expense. 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 for unfunded commitments of $12.0 million and $13.5 million at March 31, 2022 and December 31, 2021, respectively, is classified on the balance sheet within "Other liabilities".

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We recorded a reversal provision for credit losses on unfunded commitments of $1.5 million during the first quarter of 2022 primarily relating to the fluctuations in the levels and mix of outstanding loan commitments.

We believe the ACL is adequate at each period end presented. It must be emphasized, however, that the determination of the allowances using our procedures and methods rests upon various judgments and assumptions about economic conditions and other factors affecting loans. No assurance can be given that we will not in any particular period sustain loan losses that are sizable in relation to the amounts reserved or that subsequent evaluations of the loan portfolio, in light of conditions and factors then prevailing, will not require significant changes in the allowance for credit losses or future charges to earnings. See “Critical Accounting Policies – Allowance for Credit Losses on Loans and Unfunded Commitments” in Note 1 to the 2021 Annual Report on Form 10-K filed with the SEC for more information.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for credit losses and value of other real estate. Such agencies may require us to recognize adjustments to the allowance or the carrying value of other real estate based on their judgments about information available at the time of their examinations.

Liquidity, Commitments, and Contingencies

Our liquidity is determined by our ability to convert assets to cash or acquire alternative sources of funds to meet the needs of our customers who are withdrawing or borrowing funds, and to maintain required reserve levels, pay expenses and operate the Company on an ongoing basis. Our primary liquidity sources are net income from operations, cash and due from banks, federal funds sold and other short-term investments. Our securities portfolio is comprised almost entirely of readily marketable securities, which could also be sold to provide cash. Since the beginning of the COVID-19 pandemic in early 2020, we have seen our liquidity levels increase, with increases in deposits account balances leading to higher cash and investment securities levels.

In addition to internally generated liquidity sources, we have the ability to obtain borrowings from the following three sources: 1) an approximately $876 million line of credit with the FHLB (of which $1.9 million and $2.0 million were outstanding at March 31, 2022 and December 31, 2021, respectively); 2) a $100 million federal funds line with a correspondent bank (of which none was outstanding at March 31, 2022 or December 31, 2021); and 3) an approximately $138 million line of credit through the Federal Reserve Bank of Richmond’s discount window (of which none was outstanding at March 31, 2022 or December 31, 2021). Unused and available lines of credit amounted to $1.1 billion at March 31, 2022.

Our overall liquidity is essentially the same as at December 31, 2021 with our liquid assets (cash and securities) as a percentage of our total deposits and borrowings at 33.9% at March 31, 2022. We believe our liquidity sources, including unused lines of credit, are at an acceptable level and remain adequate to meet our operating needs in the foreseeable future.

The amount and timing of our contractual obligations and commercial commitments has not changed materially since December 31, 2021, detail of which is presented in the Contractual Obligations and Other Commercial Commitments table of our 2021 Annual Report on Form 10-K. In addition, we are not involved in any legal proceedings that, in our opinion, could have a material effect on our consolidated financial position.

Off-Balance Sheet Arrangements and Derivative Financial Instruments

Off-balance sheet arrangements include transactions, agreements, or other contractual arrangements pursuant to which we have obligations or provide guarantees on behalf of an unconsolidated entity. We have no off-balance sheet arrangements of this kind other than letters of credit and repayment guarantees associated with our trust preferred securities.

Derivative financial instruments include futures, forwards, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through March 31, 2022, and have no current plans to do so.

Capital Resources

The Company is regulated by the FRB and is subject to the securities registration and public reporting regulations of the SEC. Our banking subsidiary, First Bank, is also regulated by the FRB and the North Carolina Office of the Commissioner of Banks. We must comply with regulatory capital requirements established by the FRB. Failure to

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meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our financial statements. We are not aware of any recommendations of regulatory authorities or otherwise which, if they were to be implemented, would have a material effect on our liquidity, capital resources, or operations.

Under Basel III standards and capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The capital standards require us to maintain minimum ratios of “Common Equity Tier 1” capital to total risk-weighted assets, “Tier 1” capital to total risk-weighted assets, and total capital to risk-weighted assets of 4.50%, 6.00% and 8.00%, respectively. Common Equity Tier 1 capital is comprised of common stock and related surplus, plus retained earnings, and is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. Tier 1 capital is comprised of Common Equity Tier 1 capital plus Additional Tier 1 Capital, which includes non-cumulative perpetual preferred stock and trust preferred securities. Total capital is comprised of Tier 1 capital plus certain adjustments, the largest of which is our allowance for credit losses. Risk-weighted assets refer to our on- and off-balance sheet exposures, adjusted for their related risk levels using formulas set forth in FRB regulations.

In addition to the risk-based capital requirements described above, we are subject to a leverage capital requirement, which calls for a minimum ratio of Tier 1 capital (as defined above) to quarterly average total assets of 3.00% to 5.00%, depending upon the institution’s composite ratings as determined by its regulators. The FRB has not advised us of any requirement specifically applicable to us.

At March 31, 2022, our capital ratios exceeded the regulatory minimum ratios discussed above. The following table presents the capital ratios for the Company and the regulatory minimums discussed above for the periods indicated.

	March 31, 2022		December 31, 2021
Risk-based capital ratios:
Common equity Tier 1 to Tier 1 risk weighted assets	12.85	%	12.53	%
Minimum required Common Equity Tier 1 capital	7.00	%	7.00	%
Tier I capital to Tier 1 risk weighted assets	13.74	%	13.42	%
Minimum required Tier 1 capital	8.50	%	8.50	%
Total risk-based capital to Tier II risk weighted assets	14.99	%	14.67	%
Minimum required total risk-based capital	10.50	%	10.50	%
Leverage capital ratio:
Tier 1 capital to quarterly average total assets	9.60	%	9.39	%
Minimum required Tier 1 leverage capital	4.00	%	4.00	%

First Bank is also subject to capital requirements that do not vary materially from the Company’s capital ratios presented above. At March 31, 2022, First Bank exceeded the minimum ratios established by the regulatory authorities.

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK (INCLUDING QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK)

Net interest income is our most significant component of earnings and we consider interest rate risk to be our most significant market risk. In addition to changes in volumes of loans and deposits, our level of net interest income is continually at risk due to the effect that changes in general market interest rate trends have on interest yields earned and paid with respect to our various categories of earning assets and interest-bearing liabilities. It is our policy to maintain portfolios of earning assets and interest-bearing liabilities with maturities and repricing opportunities that will afford protection, to the extent practical, against wide interest rate fluctuations.

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Our exposure to interest rate risk is analyzed on a regular basis by management using standard "gap" reports (which measure the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that time period), maturity reports, and an asset/liability software model that simulates future levels of interest income and expense based on current interest rates, expected future interest rates, and various intervals of “shock” interest rates. Over the years, we have been able to maintain a fairly consistent yield on average earning assets (NIM), even during periods of changing interest rates. Over the past five calendar years, our NIM has ranged from a low of 3.16% (realized in 2021) to a high of 4.09% (realized in 2018). The 93 basis point fluctuation in NIM between the high and low point during this period was a direct result of the FRB monetary policy enacted at the beginning of the COVID-19 pandemic resulting in a reduction in short-term market interest rates totaling 150 basis points in March 2020. During the first quarter of 2022, the FRB implemented monetary policy to combat inflationary conditions and increased short-term rates 25 basis points, with the anticipation of additional rate increases to occur throughout 2022.

There has be no significant change in the Company-estimated net interest income sensitivity from December 31, 2021. Using stated maturities for all fixed rate instruments except mortgage-backed securities (which are allocated in the periods of their expected payback) and securities and borrowings with call features that are expected to be called (which are shown in the period of their expected call), at March 31, 2022, we had approximately $3.2 billion more in interest-bearing liabilities that are subject to interest rate changes within one year than earning assets. This generally would indicate that net interest income would experience downward pressure in a rising interest rate environment and would benefit from a declining interest rate environment. However, this method of analyzing interest sensitivity only measures the magnitude of the timing differences and does not address earnings, market value, or management actions. Also, interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. In addition to the effects of “when” various rate-sensitive products reprice, market rate changes may not result in uniform changes in rates among all products. For example, included in interest-bearing liabilities subject to interest rate changes within one year as of March 31, 2022 were deposits totaling $4.9 billion comprised of checking, savings, and certain types of money market deposits with interest rates set by management. These types of deposits historically have not repriced with, or in the same proportion, as general market indicators.

Generally, when rates change, our interest-sensitive assets that are subject to adjustment reprice immediately at the full amount of the change, while our interest-sensitive liabilities that are subject to adjustment reprice at a lag to the rate change and typically not to the full extent of the rate change. In the short-term (less than twelve months), this generally results in us being asset-sensitive, meaning that our net interest income benefits from an increase in interest rates and is negatively impacted by a decrease in interest rates, which is what we experienced following the March 2020 interest rate cuts. However, in the twelve-month and longer horizon, the impact of having a higher level of interest-sensitive liabilities generally lessens the short-term effects of changes in interest rates. Overall we believe that in the near-term (twelve months), net interest income will not likely experience significant pressure from fluctuations in interest rates, and specifically from the anticipated rise in interest rates.

Because of the static nature and limitations as discussed above of the gap report, we also employ an earnings simulation model to analyze the sensitivity of net interest income to movements in interest rates. The model is based on actual cash flows and repricing characteristics for on- and off-balance sheet instruments and incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities. Earnings-simulation analysis captures not only the potential of these interest sensitive assets and liabilities to mature or reprice, but also the probability that they will do so. Moreover, earnings-simulation analysis considers the relative sensitivities of these balance sheet items and projects their behavior over an extended period of time.

The general discussion in the foregoing paragraph applies most directly in a “normal” interest rate environment in which longer-term maturity instruments carry higher interest rates than short-term maturity instruments, and is less applicable in periods in which there is a “flat” interest rate curve. A “flat yield curve” means that short-term interest rates are substantially the same as long-term interest rates. Actions taken by the FRB at the beginning of the pandemic resulted in a very low and flat interest rate curve environment. Recent actions to raise short-term interest rates have resulted in a some steepening of the yield curve on the short end (within 3 years). However, the longer end of the curve continues to be flat. A flat interest rate curve is an unfavorable interest rate environment for many banks, including the Bank, as short-term interest rates generally drive our deposit pricing and longer-term interest rates generally drive loan pricing. When these rates converge, the profit spread we realize between loan yields and deposit rates narrows, which pressures our net interest margin.

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Assuming that short term rates continue to rise over the next 12 months, we may see some benefit to our net interest margin from raising rates if we are able to maintain stable funding costs. Our experience historically has been that our demand deposit accounts have lagged the timing and amount of general market increases. However, we expect continued pressure on net interest margin from market competition for quality loans and the investment of liquidity in lower earning assets until loan demand increases sufficiently to deploy excess liquidity from short-term investments and securities.

Inflation

Because the assets and liabilities of a bank are primarily monetary in nature (payable in fixed, determinable amounts), the performance of a bank is affected more by changes in interest rates than by inflation as discussed above under Interest Rate Risk. Interest rates generally increase as the rate of inflation increases, but the magnitude of the change in rates may not be the same. The effect of inflation on banks is normally not as significant as its influence on those businesses that have large investments in plant and inventories. During periods of high inflation, there are normally corresponding increases in the money supply, and banks will normally experience above average growth in assets, loans, and deposits. Also, general increases in the price of goods and services will result in increased operating expenses.

Item 4 – Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, which are our controls and other procedures that are designed to ensure that information required to be disclosed in our periodic reports with the SEC is recorded, processed, summarized and reported within the required time periods.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed is communicated to our management to allow timely decisions regarding required disclosure.  Based on the evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective in allowing timely decisions regarding disclosure to be made about material information required to be included in our periodic reports with the SEC. In addition, no change in our internal control over financial reporting has occurred during, or subsequent to, the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1 – Legal Proceedings

Various legal proceedings may arise in the ordinary course of business and may be pending or threatened against the Company and its subsidiaries. Neither the Company nor any of its subsidiaries is involved in any pending legal proceedings that management believes are material to the Company or its consolidated financial position.  If an exposure were to be identified, it is the Company’s policy to establish and accrue appropriate reserves during the accounting period in which a loss is deemed to be probable and the amount is determinable.

Item 1A – Risk Factors

Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as cautionary statements contained in this Form 10-Q, including those under the caption “Forward-Looking Statements” set forth in the forepart of this Form 10-Q, risks and matters described elsewhere in this Form 10-Q and in our other filings with the SEC. There are no material changes from the risk factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

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Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

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)
January 1, 2021 to January 31, 2021	—	$	—	—	$	—
February 1, 2021 to February 28, 2021	—	—		—	$	40,000,000
March 1, 2021 to March 31, 2021	—	—		—	$	40,000,000
Total	—	—		—	$	40,000,000

(1)All shares available for repurchase are pursuant to publicly announced share repurchase authorizations. On February 7, 2022, the Company reported the authorization of a $40 million repurchase program with an expiration date of December 31, 2022. As of March 31, 2022, the Company had the remaining authorization to repurchase up to $40 million of the Company's stock.

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Item 6 - Exhibits

The following exhibits are filed with this report or, as noted, are incorporated by reference. Except as noted below the exhibits identified have Securities and Exchange Commission File No. 000-15572. Management contracts, compensatory plans and arrangements are marked with an asterisk (*).

2.a	Purchase and Assumption Agreement dated as of March 3, 2016 between First Bank (as Seller) and First Community Bank (as Purchaser) was filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on March 7, 2016, and is incorporated herein by reference.
2.b	Purchase and Assumption Agreement dated as of March 3, 2016 between First Community Bank (as Seller) and First Bank (as Purchaser) was filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K filed on March 7, 2016, and is incorporated herein by reference.
2.c	Merger Agreement between First Bancorp and Carolina Bank Holdings, Inc. dated June 21, 2016 was filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on June 22, 2016, and is incorporated herein by reference.
2.d	Merger Agreement between First Bancorp and ASB Bancorp, Inc. dated May 1, 2017 was filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on May 1, 2017, and is incorporated herein by reference.
2.e	Merger Agreement between First Bancorp and Select Bancorp, Inc. dated June 1, 2021 was filed as Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 1, 2021, and is incorporated herein by reference.
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	Amended and Restated Bylaws of the Company were filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on February 9, 2018, and are incorporated herein by reference.
4.a	Form of Common Stock Certificate was filed as Exhibit 4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1999, and is incorporated herein by reference.
10.a	Amended and Restated Employment Agreement by and among the Company and the Bank and Michael G. Mayer effective February 1, 2022 was filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed on January 28, 2022 and is incorporated by reference.
21	List of Subsidiaries of Registrant
31.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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.

Copies of exhibits are available upon written request to: First Bancorp, Elizabeth B. Bostian, Chief Financial Officer, 300 SW Broad Street, Southern Pines, North Carolina, 28387

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST BANCORP
May 10, 2022	BY:/s/  Richard H. Moore
	Richard H. Moore Chief Executive Officer (Principal Executive Officer), and Director
May 10, 2022	BY:/s/  Elizabeth B. Bostian
	Elizabeth B. Bostian Executive Vice President and Chief Financial Officer
May 10, 2022	BY:/s/  Blaise B. Buczkowski
	Blaise B, Buczkowski Executive Vice President and Chief Accounting Officer

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EX-21

Exhibit 21

First Bancorp and Subsidiaries

List of Subsidiaries of Registrant

Name of Subsidiary and Name under Which Subsidiary Transacts Business	State of Incorporation	Address of Subsidiary
First Bank (1)	North Carolina	300 SW Broad Street Southern Pines, North Carolina 28387
First Bancorp Capital Trust II	Delaware	300 SW Broad Street Southern Pines, North Carolina 28387
First Bancorp Capital Trust III	Delaware	300 SW Broad Street Southern Pines, North Carolina 28387
First Bancorp Capital Trust IV	Delaware	300 SW Broad Street Southern Pines, North Carolina 28387
Carolina Capital Trust	Delaware	300 SW Broad Street Southern Pines, North Carolina 28387
New Century Statutory Trust I	Delaware	300 SW Broad Street Southern Pines, North Carolina 28387

(1) First Bank has three wholly owned subsidiaries –

First Troy SPE, LLC, a North Carolina corporation located at 300 SW Broad Street, Southern Pines, North Carolina 28387 (I.R.S. Employer Identification Number 56-0132230).

SBA Complete, Inc., a California corporation located at 550 Continental Boulevard, Suite 120, El Segundo, California 90245 (I.R.S. Employer Identification Number 45-2516664).

Magnolia Financial, Inc., a South Carolina corporation located at 187 W. Broad Street, Spartanburg, South Carolina 29306 (I.R.S. Employer Identification Number 57-0661930).

EX-31.1

Exhibit 31.1

Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002

I, Richard H. Moore, certify that:

1.I have reviewed this Form 10-Q of First Bancorp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 10, 2022	/s/ Richard H. Moore
	Richard H. Moore
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002

I, Elizabeth B. Bostian, certify that:

1.I have reviewed this Form 10-Q of First Bancorp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 10, 2022	/s/ Elizabeth B. Bostian
	Elizabeth B. Bostian
	Chief Executive Officer

EX-32.1

Exhibit 32.1

Chief Executive Officer

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of First Bancorp (the "Company") on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard H. Moore, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Richard H. Moore

Richard H. Moore

Chief Executive Officer

May 10, 2022

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to First Bancorp and will be retained by First Bancorp and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Chief Financial Officer

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of First Bancorp (the "Company") on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Elizabeth B. Bostian, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Elizabeth B. Bostian

Elizabeth B. Bostian

Chief Financial Officer

May 10, 2022

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to First Bancorp and will be retained by First Bancorp and furnished to the Securities and Exchange Commission or its staff upon request.

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Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
Entity File Number	0-15572
Entity Registrant Name	FIRST BANCORP
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-1421916
Entity Address, Address Line One	300 SW Broad St.,
Entity Address, City or Town	Southern Pines
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28387
City Area Code	(910)
Local Phone Number	246-2500
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	FBNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		35,639,889
Entity Central Index Key	0000811589
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks, noninterest-bearing	$ 124,785	$ 128,228
Due from banks, interest-bearing	440,974	332,934
Total cash and cash equivalents	565,759	461,162
Securities available for sale	2,685,048	2,630,414
Securities held to maturity (fair values of $492,307 and $511,699)	546,090	513,825
Presold mortgages in process of settlement at fair value	5,672	19,257
SBA and other loans held for sale	3,630	61,003
Loans	6,064,698	6,081,715
Allowance for credit losses on loans	(82,069)	(78,789)
Net loans	5,982,629	6,002,926
Premises and equipment	135,482	136,092
Operating right-of-use lease assets	20,380	20,719
Accrued interest receivable	24,728	25,896
Goodwill	364,263	364,263
Other intangible assets	16,928	17,827
Foreclosed properties	2,750	3,071
Bank-owned life insurance	164,273	165,786
Other assets	134,428	86,660
Total assets	10,652,060	10,508,901
LIABILITIES
Noninterest-bearing checking accounts	3,593,642	3,348,622
Interest-bearing checking accounts	1,577,197	1,593,231
Money market accounts	2,636,913	2,562,283
Savings accounts	735,659	708,054
Time deposits of $100,000 or more	543,542	613,414
Other time deposits	298,194	299,025
Total deposits	9,385,147	9,124,629
Borrowings	67,415	67,386
Accrued interest payable	576	607
Operating lease liabilities	20,903	21,192
Other liabilities	60,529	64,512
Total liabilities	9,534,570	9,278,326
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Preferred stock, no par value per share. Authorized: 5,000,000 shares, Issued & outstanding: none and none	0	0
Common stock, no par value per share. Authorized: 40,000,000 shares, Issued & outstanding: 28,489,474 and 28,579,335 shares	723,441	722,671
Retained earnings	559,004	532,874
Stock in rabbi trust assumed in acquisition	(1,814)	(1,803)
Rabbi trust obligation	1,814	1,803
Accumulated other comprehensive loss	(164,955)	(24,970)
Total shareholders’ equity	1,117,490	1,230,575
Total liabilities and shareholders’ equity	$ 10,652,060	$ 10,508,901

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Securities held to maturity fair values	$ 492,307	$ 511,699
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)	35,639,889	35,629,177
Common stock, shares outstanding (in shares)	35,639,889	35,629,177

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Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
INTEREST INCOME
Interest and fees on loans	$ 64,202	$ 51,073
Interest on investment securities:
Taxable interest income	13,210	5,913
Tax-exempt interest income	1,048	323
Other, principally overnight investments	649	700
Total interest income	79,109	58,009
INTEREST EXPENSE
Savings, checking and money market accounts	1,185	1,314
Time deposits of $100,000 or more	430	858
Other time deposits	156	216
Borrowings	460	383
Total interest expense	2,231	2,771
Net interest income	76,878	55,238
Provision for credit losses	3,500	0
Reversal of provision for unfunded commitments	(1,500)	0
Total provision for credit losses	2,000	0
Net interest income after provision for credit losses	74,878	55,238
NONINTEREST INCOME
Service charges on deposit accounts	3,541	2,733
Other service charges, commissions and fees	7,005	5,522
Fees from presold mortgage loans	1,121	4,544
Commissions from sales of insurance and financial products	945	2,190
SBA consulting fees	780	2,764
SBA loan sale gains	3,261	2,330
Bank-owned life insurance income	976	620
Other gains (losses), net	1,622	(34)
Total noninterest income	19,251	20,669
NONINTEREST EXPENSES
Salaries expense	23,454	20,131
Employee benefits expense	5,578	4,574
Total personnel expense	29,032	24,705
Occupancy expense	3,384	2,904
Equipment related expenses	1,304	1,045
Merger and acquisition expenses	3,484	0
Intangibles amortization expense	1,017	897
Foreclosed property (gains) losses, net	(80)	157
Other operating expenses	13,324	10,357
Total noninterest expenses	51,465	40,065
Income before income taxes	42,664	35,842
Income tax expense	8,695	7,648
Net income	$ 33,969	$ 28,194
Earnings per common share:
Basic (in dollars per share)	$ 0.95	$ 0.99
Diluted (in dollars per share)	0.95	0.99
Dividends declared per common share (in dollars per share)	$ 0.22	$ 0.20
Weighted average common shares outstanding:
Basic (in shares)	35,433,739	28,357,809
Diluted (in shares)	35,640,978	28,537,853

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 33,969	$ 28,194
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period, pretax	(181,795)	(24,235)
Tax benefit	41,776	5,569
Postretirement Plans:
Amortization of unrecognized net actuarial loss	44	171
Tax benefit	(10)	(40)
Other comprehensive loss	(139,985)	(18,535)
Comprehensive (loss) income	$ (106,016)	$ 9,659

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period Of Adoption, Adjustment	Common Stock	Retained Earnings	Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	Stock in Rabbi Trust Assumed in Acquisition	Rabbi Trust Obligation	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2020			28,579,000
Beginning balance at Dec. 31, 2020	$ 893,421	$ (17,051)	$ 400,582	$ 478,489	$ (17,051)	$ (2,243)	$ 2,243	$ 14,350
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,194			28,194
Cash dividends declared	(5,688)			(5,688)
Change in Rabbi Trust obligation	0					(13)	13
Stock repurchases (in shares)			(107,000)
Stock repurchases	(4,036)		$ (4,036)
Stock-based compensation (in shares)			20,000
Stock-based compensation	651		$ 651
Other comprehensive loss	(18,535)							(18,535)
Ending balance (in shares) at Mar. 31, 2021			28,489,000
Ending balance at Mar. 31, 2021	$ 876,853		$ 397,094	483,944		(2,256)	2,256	(4,185)
Beginning balance (in shares) at Dec. 31, 2021	35,629,177		35,629,000
Beginning balance at Dec. 31, 2021	$ 1,230,575		$ 722,671	532,874		(1,803)	1,803	(24,970)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	33,969			33,969
Cash dividends declared	(7,839)			(7,839)
Change in Rabbi Trust obligation	0					(11)	11
Stock withheld for payment of taxes (in shares)			(3,000)
Stock withheld for payment of taxes	(117)		$ (117)
Stock-based compensation (in shares)			14,000
Stock-based compensation	887		$ 887
Other comprehensive loss	$ (139,985)							(139,985)
Ending balance (in shares) at Mar. 31, 2022	35,639,889		35,640,000
Ending balance at Mar. 31, 2022	$ 1,117,490		$ 723,441	$ 559,004		$ (1,814)	$ 1,814	$ (164,955)

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.22	$ 0.20

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activities
Net income	$ 33,969	$ 28,194
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses	2,000	0
Net security premium amortization	3,437	2,876
Loan discount accretion	(1,671)	(1,341)
Other purchase accounting accretion and amortization, net	(172)	29
Foreclosed property (gains) losses and write-downs, net	(80)	157
Other (gains) losses, net	(1,622)	34
(Decrease) increase in net deferred loan fees	(776)	2,845
Bank-owned life insurance income	(976)	(620)
Depreciation of premises and equipment	1,726	1,448
Amortization of operating lease right-of-use assets	339	517
Repayments of lease obligations	(289)	(416)
Stock-based compensation expense	547	397
Amortization of intangible assets	1,017	897
Amortization of SBA servicing assets	626	470
Fees/gains from sale of presold mortgages and SBA loans	(4,382)	(6,874)
Origination of presold mortgage loans in process of settlement	(46,488)	(112,592)
Proceeds from sales of presold mortgage loans in process of settlement	60,860	127,346
Origination of SBA loans for sale	(39,807)	(37,359)
Proceeds from sales of SBA and other loans	88,895	32,467
Decrease in accrued interest receivable	1,168	1,620
Decrease (increase) in other assets	3,509	(5,242)
Decrease (increase) in net deferred income tax asset	1,160	(4,596)
Decrease in accrued interest payable	(31)	(163)
(Decrease) increase in other liabilities	(2,816)	639
Net cash provided by operating activities	100,143	30,733
Cash Flows From Investing Activities
Purchases of securities available for sale	(330,147)	(475,960)
Purchases of securities held to maturity	(36,089)	(37,438)
Proceeds from maturities/issuer calls of securities available for sale	91,421	80,650
Proceeds from maturities/issuer calls of securities held to maturity	2,684	5,780
(Purchases) redemptions of FRB and FHLB stock, net	(9,818)	1,836
Net decrease in loans	29,927	110,212
Proceeds from sales of foreclosed properties	520	1,183
Purchases of premises and equipment	(1,217)	(4,534)
Proceeds from sales of premises and equipment	99	218
Bank-owned life insurance death benefits	3,595	0
Net cash used by investing activities	(249,025)	(318,053)
Cash Flows From Financing Activities
Net increase in deposits	260,752	459,906
Payments on long-term borrowings	(33)	(531)
Cash dividends paid – common stock	(7,123)	(5,140)
Repurchases of common stock	0	(4,036)
Payment of taxes related to stock withheld	(117)	(103)
Net cash provided by financing activities	253,479	450,096
Increase in cash and cash equivalents	104,597	162,776
Cash and cash equivalents, beginning of period	461,162	367,290
Cash and cash equivalents, end of period	565,759	530,066
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest	2,422	2,934
Cash paid during the period for income taxes	0	9,585
Non-cash: Unrealized loss on securities available for sale, net of taxes	(140,019)	(18,666)
Non-cash: Foreclosed loans transferred to other real estate	119	727
Non-cash: Accrued dividends at end of period	7,839	5,688
Non-cash: Initial recognition of operating lease right-of-use assets and operating lease liabilities	$ 0	$ 444

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

The consolidated financial statements include the accounts of First Bancorp (the “Company”) and its wholly owned subsidiary First Bank (the “Bank”). The Bank has three wholly owned subsidiaries that are fully consolidated, SBA Complete, Inc. (“SBA Complete”), Magnolia Financial, Inc. ("Magnolia Financial"), and First Troy SPE, LLC. All significant intercompany accounts and transactions have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of March 31, 2022, the consolidated results of operations for the three months ended March 31, 2022 and 2021, and the consolidated cash flows for the three months ended March 31, 2022 and 2021. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year.

Reference is made to Note 1 of the 2021 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. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or shareholders' equity as previously reported.

The Company has evaluated all subsequent events through the date the financial statements were issued.

Impact of COVID-19

Our market areas and local economies continue to show signs of recovery from the impact of the COVID-19 pandemic. However, the current pandemic is ongoing and dynamic in nature, and there are many related uncertainties, including, among other things, its severity and new variants that may arise; its ultimate duration and infection spikes that may occur; the impact on our customers, employees and vendors; the impact on the financial services and banking industry; and the ongoing impact on the economy as a whole. 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 Pronouncements

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Accounting Pronouncements

Accounting Pronouncements

Accounting Standards Adopted in 2022

The Company did not adopt any accounting standards during the first three months of 2022.

Accounting Standards Pending Adoption

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This Accounting Standards Update ("ASU") eliminates the accounting guidance for troubled debt restructurings by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years and early adoption is permitted. The entity must have adopted the amendments in ASU 2016-13 ("CECL") to adopt the amendments in this ASU. The Company is currently evaluating the impact of

adopting the new guidance on the consolidated financial statements but does not expect it to have a material effect on its financial statements.

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Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The book values and approximate fair values of investment securities at March 31, 2022 and December 31, 2021 are summarized as follows:

($ in thousands)	March 31, 2022					December 31, 2021
	Amortized Cost		Fair Value	Unrealized		Amortized Cost		Fair Value	Unrealized
				Gains	(Losses)				Gains	(Losses)
Securities available for sale:
US Treasuries	$	149,534	149,391	—	(143)	$	—	—	—	—
Government-sponsored enterprise securities	71,953		64,168	—	(7,785)	71,951		69,179	—	(2,772)
Mortgage-backed securities	2,632,054		2,425,911	349	(206,492)	2,545,150		2,514,805	9,489	(39,834)
Corporate bonds	45,369		45,578	367	(158)	45,380		46,430	1,106	(56)
Total available for sale	$	2,898,910	2,685,048	716	(214,578)	2,662,481		2,630,414	10,595	(42,662)
Securities held to maturity:
Mortgage-backed securities	$	18,662	18,513	1	(150)	20,260		20,845	585	—
State and local governments	527,428		473,794	19	(53,653)	493,565		490,854	2,955	(5,666)
Total held to maturity	$	546,090	492,307	20	(53,803)	513,825		511,699	3,540	(5,666)

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises, except for private mortgage-backed securities with a fair value of $0.9 million and $0.9 million as of March 31, 2022 and December 31, 2021, respectively.

The following table presents information regarding securities with unrealized losses at March 31, 2022:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasuries	$	149,391	143	—	—	149,391	143
Government-sponsored enterprise securities	19,855		2,104	44,313	5,681	64,168	7,785
Mortgage-backed securities	1,656,529		133,422	705,932	73,220	2,362,461	206,642
Corporate bonds	13,914		86	928	72	14,842	158
State and local governments	431,433		46,491	40,482	7,162	471,915	53,653
Total unrealized loss position	$	2,271,122	182,246	791,655	86,135	3,062,777	268,381

The following table presents information regarding securities with unrealized losses at December 31, 2021:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Government-sponsored enterprise securities	$	21,436	522	47,743	2,250	69,179	2,772
Mortgage-backed securities	1,773,022		25,977	404,484	13,857	2,177,506	39,834
Corporate bonds	999		1	945	55	1,944	56
State and local governments	228,279		3,797	34,398	1,869	262,677	5,666
Total unrealized loss position	$	2,023,736	30,297	487,570	18,031	2,511,306	48,328

As of March 31, 2022 and December 31, 2021, the Company's security portfolio held 600 securities of which 371 securities were in an unrealized loss position. In the above tables, all of the securities that were in an unrealized loss position at March 31, 2022 and December 31, 2021 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.

At March 31, 2022 and December 31, 2021, the Company determined that expected credit losses associated with held to maturity debt securities was insignificant.

The book values and approximate fair values of investment securities at March 31, 2022, 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.

	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Securities
Due within one year	$	26,102	26,381	436	440
Due after one year but within five years	152,051		151,996	—	—
Due after five years but within ten years	87,703		79,832	17,141	15,988
Due after ten years	1,000		928	509,851	457,366
Mortgage-backed securities	2,632,054		2,425,911	18,662	18,513
Total securities	$	2,898,910	2,685,048	546,090	492,307

At March 31, 2022 and December 31, 2021 investment securities with carrying values of $852.8 million and $951.4 million, respectively, were pledged as collateral for public deposits.

At March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than US Government and its agencies or government sponsored enterprises, in an amount greater than 10% of shareholders equity.

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 $32.2 million and $22.3 million at March 31, 2022 and December 31, 2021, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $5.3 million and $4.6 million at March 31, 2022 and December 31, 2021, 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 $26.8 million and $17.8 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 was approximately 1.62, which means the Company would receive approximately 19,993 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

3 Months Ended

Mar. 31, 2022

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:

($ in thousands)	March 31, 2022				December 31, 2021
	Amount		Percentage		Amount		Percentage
All  loans:
Commercial, financial, and agricultural	$	603,454	10	%	$	648,997	11	%
Real estate – construction, land development & other land loans	795,886		13	%	828,549		13	%
Real estate – mortgage – residential (1-4 family) first mortgages	1,045,167		17	%	1,021,966		17	%
Real estate – mortgage – home equity loans / lines of credit	329,348		6	%	331,932		5	%
Real estate – mortgage – commercial and other	3,234,949		53	%	3,194,737		53	%
Consumer loans	56,822		1	%	57,238		1	%
Subtotal	6,065,626		100	%	6,083,419		100	%
Unamortized net deferred loan fees	(928)				(1,704)
Total loans	$	6,064,698			$	6,081,715

Included in the line item "Commercial, financial, and agricultural" in the table above are Paycheck Protection Program ("PPP") loans totaling $15.6 million and $39.0 million at March 31, 2022 and December 31, 2021, respectively. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are approximately $1.3 million and $2.6 million at March 31, 2022 and December 31, 2021, 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.

Included in the table above are credit card balances outstanding totaling $38.8 million and $37.9 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, approximately 57% of total credit card balances are business credit cards included in "commercial, financial and agricultural" above and the remaining 43% are personal credit cards included in consumer loans in the table above.

Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.

($ in thousands)	March 31, 2022		December 31, 2021
Guaranteed portions of non-PPP SBA loans included in table above	$	33,024	48,377
Unguaranteed portions of non-PPP SBA loans included in table above	126,936		122,772
Total non-PPP SBA loans included in the table above	$	159,960	171,149
Sold portions of SBA loans with servicing retained - not included in tables above	$	426,601	414,240

At March 31, 2022 and December 31, 2021, there was a remaining unaccreted discount on the retained portion of sold non-PPP SBA loans amounting to $5.9 million and $6.0 million, respectively.

Loans in the amount of $5.4 billion and $4.3 billion were pledged as collateral for certain borrowings at March 31, 2022 and December 31, 2021, respectively.

The loans above also include loans to executive officers and directors serving the Company at March 31, 2022 and to their related persons, totaling approximately $6.5 million and $0.6 million at March 31, 2022 and December 31, 2021, respectively. There were $5.8 million in new loans due to the addition of new directors, there was $36,000 in advances on loans in the first three months of 2022, and repayments amounted to $21,000. The loans were made on terms and conditions applicable to similarly situated borrowers and management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features.

As of March 31, 2022 and December 31, 2021, unamortized discounts on all acquired loans totaled $15.6 million and $17.2 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.

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.

($ in thousands)	March 31, 2022		December 31, 2021
Nonaccrual loans	$	33,460	34,696
TDRs - accruing	12,727		13,866
Accruing loans > 90 days past due	—		1,004
Total nonperforming loans	46,187		49,566
Foreclosed real estate	2,750		3,071
Total nonperforming assets	$	48,937	52,637

At March 31, 2022 and December 31, 2021, the Company had $1.0 million and $1.5 million, respectively, in residential mortgage loans in process of foreclosure, respectively.

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2022.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,911	8,661	12,572
Real estate – construction, land development & other land loans	928		126	1,054
Real estate – mortgage – residential (1-4 family) first mortgages	161		3,559	3,720
Real estate – mortgage – home equity loans / lines of credit	—		807	807
Real estate – mortgage – commercial and other	8,351		6,865	15,216
Consumer loans	—		91	91
Total	$	13,351	20,109	33,460

The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2021.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,947	8,205	12,152
Real estate – construction, land development & other land loans	495		137	632
Real estate – mortgage – residential (1-4 family) first mortgages	858		4,040	4,898
Real estate – mortgage – home equity loans / lines of credit	—		694	694
Real estate – mortgage – commercial and other	7,648		8,583	16,231
Consumer loans	—		89	89
Total	$	12,948	21,748	34,696

There was no interest income recognized during the three month period ended March 31, 2022 or the year ended December 31, 2021 on nonaccrual loans. The Company follows its nonaccrual policy of reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status.

The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:

($ in thousands)	For the Three Months Ended March 31, 2022		For the Year Ended December 31, 2021	For the Three Months Ended March 31, 2021
Commercial, financial, and agricultural	$	8	195	64
Real estate – construction, land development & other land loans	12		6	—
Real estate – mortgage – residential (1-4 family) first mortgages	10		31	5
Real estate – mortgage – home equity loans / lines of credit	2		14	4
Real estate – mortgage – commercial and other	100		453	220
Consumer loans	—		—	—
Total	$	132	699	293

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2022.

($ 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	$	389	105	—	12,572	590,388	603,454
Real estate – construction, land development & other land loans	1,492		—	—	1,054	793,340	795,886
Real estate – mortgage – residential (1-4 family) first mortgages	8,739		20	—	3,720	1,032,688	1,045,167
Real estate – mortgage – home equity loans / lines of credit	891		36	—	807	327,614	329,348
Real estate – mortgage – commercial and other	2,294		—	—	15,216	3,217,439	3,234,949
Consumer loans	103		134	—	91	56,494	56,822
Total	$	13,908	295	—	33,460	6,017,963	6,065,626
Unamortized net deferred loan fees							(928)
Total loans							$	6,064,698

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2021.

($ 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	$	377	93	—	12,152	636,375	648,997
Real estate – construction, land development & other land loans	4,046		—	286	632	823,585	828,549
Real estate – mortgage – residential (1-4 family) first mortgages	6,571		1,488	—	4,898	1,009,009	1,021,966
Real estate – mortgage – home equity loans / lines of credit	489		124	718	694	329,907	331,932
Real estate – mortgage – commercial and other	164		1,496	—	16,231	3,176,846	3,194,737
Consumer loans	116		62	—	89	56,971	57,238
Total	$	11,763	3,263	1,004	34,696	6,032,693	6,083,419
Unamortized net deferred loan fees							(1,704)
Total loans							$	6,081,715

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. The Company reviews individually evaluated loans on nonaccrual with a net book balance of $350,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $350,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses.

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2022.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	9,508	—	—	9,508
Real estate – construction, land development & other land loans	—		—	928	—	928
Real estate – mortgage – residential (1-4 family) first mortgages	161		—	—	—	161
Real estate – mortgage – commercial and other	—		—	—	11,081	11,081
Total	$	161	9,508	928	11,081	21,678

The following table presents an analysis of collateral-dependent loans of the Company as of December 31, 2021.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	7,886	—	—	7,886
Real estate – construction, land development & other land loans	—		—	533	—	533
Real estate – mortgage – residential (1-4 family) first mortgages	871		—	—	—	871
Real estate – mortgage – commercial and other	—		—	—	10,743	10,743
Total	$	871	7,886	533	10,743	20,033

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 which may be undergoing heightened stress due to economic or other external factors, the Company may reduce the collateral values by an additional 10-25% to recognize 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 excess collateral for any of the loan types noted above.

The following table presents the activity in the Allowance for Credit Losses ("ACL") on loans for each of the periods indicated.

($ 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 March 31, 2022
Beginning balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789
Charge-offs	(790)		—	—	(41)	(45)	(167)	—	(1,043)
Recoveries	247		137	4	233	155	47	—	823
Provisions / (Reversals)	307		(599)	(531)	(2,455)	6,875	(97)	—	3,500
Ending balance	$	16,013	16,057	8,159	2,074	37,327	2,439	—	82,069

($ 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, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Allowance for acquired PCD loans	2,917		165	222	92	1,489	10	—	4,895
Charge-offs	(3,722)		(245)	(273)	(400)	(2,295)	(667)	—	(7,602)
Recoveries	1,744		948	761	578	533	358	—	4,922
Provisions/(Reversals)	927		4,156	(2,656)	(888)	7,269	803	—	9,611
Ending balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789

($ 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 March 31, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Charge-offs	(1,438)		(66)	(38)	(131)	(510)	(134)	—	(2,317)
Recoveries	514		294	87	11	262	35	—	1,203
Provisions/(Reversals)	147		(1,589)	(1,685)	(526)	3,409	244	—	—
Ending balance	$	13,606	10,134	8,996	4,309	26,507	2,297	—	65,849

Credit Quality Indicators

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:

	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.

In the tables that follow, 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 tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition.

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of March 31, 2022
Commercial, financial, and agricultural
Pass	$	35,980	177,169	105,179	66,635	62,972	29,478	105,225	582,638
Special Mention	—		125	399	621	2,633	216	2,504	6,498
Classified	119		2,454	1,417	2,136	6,908	577	707	14,318
Total commercial, financial, and agricultural	36,099		179,748	106,995	69,392	72,513	30,271	108,436	603,454
Real estate – construction, land development & other land loans
Pass	113,568		488,287	94,674	59,914	9,256	12,619	9,836	788,154
Special Mention	—		38	726	4,117	107	98	5	5,091
Classified	1,416		148	45	944	71	17	—	2,641
Total real estate – construction, land development & other land loans	114,984		488,473	95,445	64,975	9,434	12,734	9,841	795,886
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	53,280		277,391	206,074	114,970	76,281	290,677	8,318	1,026,991
Special Mention	—		512	448	328	201	3,331	96	4,916
Classified	136		391	480	895	940	9,410	1,008	13,260
Total real estate – mortgage – residential (1-4 family) first mortgages	53,416		278,294	207,002	116,193	77,422	303,418	9,422	1,045,167
Real estate – mortgage – home equity loans / lines of credit
Pass	306		2,258	410	299	1,254	2,244	315,092	321,863
Special Mention	48		187	—	—	—	18	1,112	1,365
Classified	18		163	96	75	—	327	5,441	6,120
Total real estate – mortgage – home equity loans / lines of credit	372		2,608	506	374	1,254	2,589	321,645	329,348
Real estate – mortgage – commercial and other
Pass	275,364		1,315,875	716,571	307,705	184,889	337,011	57,982	3,195,397
Special Mention	521		2,042	4,737	4,849	3,708	3,103	1,340	20,300
Classified	124		4,979	249	2,953	5,910	4,832	205	19,252
Total real estate – mortgage – commercial and other	276,009		1,322,896	721,557	315,507	194,507	344,946	59,527	3,234,949
Consumer loans
Pass	5,115		29,404	6,453	2,313	1,407	923	10,998	56,613
Special Mention	—		—	—	—	—	—	—	—
Classified	—		141	11	1	—	17	39	209
Total consumer loans	5,115		29,545	6,464	2,314	1,407	940	11,037	56,822
Total	$	485,995	2,301,564	1,137,969	568,755	356,537	694,898	519,908	6,065,626
Unamortized net deferred loan fees									(928)
Total loans									6,064,698

	Term Loans by Year of Origination
($ in thousands)	2021		2020	2019	2018	2017	Prior	Revolving	Total
As of December 31, 2021
Commercial, financial, and agricultural
Pass	$	204,945	138,540	71,369	66,645	16,009	17,492	112,933	627,933
Special Mention	225		1,255	1,313	2,729	225	9	2,348	8,104
Classified	1,609		793	1,703	7,096	511	96	1,152	12,960
Total commercial, financial, and agricultural	206,779		140,588	74,385	76,470	16,745	17,597	116,433	648,997
Real estate – construction, land development & other land loans
Pass	573,613		133,888	69,066	12,455	9,764	8,190	13,737	820,713
Special Mention	41		737	5,095	110	104	2	9	6,098
Classified	1,541		49	47	83	14	4	—	1,738
Total real estate – construction, land development & other land loans	575,195		134,674	74,208	12,648	9,882	8,196	13,746	828,549
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	241,619		224,617	120,097	82,531	86,074	234,950	11,051	1,000,939
Special Mention	888		615	516	229	323	3,237	94	5,902
Classified	419		156	535	1,185	653	11,246	931	15,125
Total real estate – mortgage – residential (1-4 family) first mortgages	242,926		225,388	121,148	83,945	87,050	249,433	12,076	1,021,966
Real estate – mortgage – home equity loans / lines of credit
Pass	3,111		498	439	1,304	245	1,649	317,319	324,565
Special Mention	194		—	15	—	—	19	1,341	1,569
Classified	75		97	71	—	—	607	4,948	5,798
Total real estate – mortgage – home equity loans / lines of credit	3,380		595	525	1,304	245	2,275	323,608	331,932
Real estate – mortgage – commercial and other
Pass	1,328,156		796,992	355,885	211,118	197,165	197,659	66,104	3,153,079
Special Mention	1,759		4,849	5,801	3,741	2,072	1,801	1,440	21,463
Classified	7,147		413	2,110	6,025	3,897	603	—	20,195
Total real estate – mortgage – commercial and other	1,337,062		802,254	363,796	220,884	203,134	200,063	67,544	3,194,737
Consumer loans
Pass	14,960		25,431	2,965	1,722	673	525	10,810	57,086
Special Mention	—		4	—	—	—	—	—	4
Classified	—		73	—	8	—	25	42	148
Total consumer loans	14,960		25,508	2,965	1,730	673	550	10,852	57,238
Total	$	2,380,302	1,329,007	637,027	396,981	317,729	478,114	544,259	6,083,419
Unamortized net deferred loan fees									(1,704)
Total loans									6,081,715

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 TDRs modified during the periods ended March 31, 2022 and March 31, 2021 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness.

The Company’s TDRs can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that are nonaccrual are reported within the nonaccrual loan totals presented previously.

At March 31, 2022 there were two loans with immaterial commitments to lend additional funds to debtors whose loans were modified as a TDR. At December 31, 2021, there were no commitments to lend additional funds to debtors whose loans were modified as a TDR.

The following table presents information related to loans modified in a TDR during the three months ended March 31, 2022 and 2021.

($ in thousands)	For the three months ended March 31, 2022					For the three months ended March 31, 2021
	Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances
TDRs – Accruing
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	—	—		—		1	160		160
TDRs – Nonaccrual
Commercial, financial, and agricultural	1	41		41		1	111		108
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	1	540		540		—	—		—
Total TDRs arising during period	4	$	653	$	653	2	$	271	$	268

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. There were no accruing TDRs that were modified in the previous twelve months and that defaulted during the three months ended March 31, 2022 or 2021.

Concentration of Credit Risk

Most of the Company's business activity is with customers located within the markets where it has banking operations. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy within its markets. Approximately 89% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations.

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. 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 unfunded commitments 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. The allowance for credit losses for unfunded loan commitments of $12.0 million and $13.5 million at March 31, 2022 and December 31, 2021, respectively, is separately classified on the Consolidated Balance Sheets within "Other liabilities".

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2022.

($ in thousands)	Total Allowance for Credit Losses - Unfunded Loan Commitments
Beginning balance at December 31, 2021	$	13,506
Charge-offs	—
Recoveries	—
Reversal of provision for unfunded commitments	(1,500)
Ending balance at March 31, 2022	$	12,006

Allowance for Credit Losses - Securities Held to Maturity

The allowance for credit losses for securities held to maturity was immaterial at March 31, 2022 and December 31, 2021.

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of March 31, 2022 and December 31, 2021, and the carrying amount of unamortized intangible assets as of those same dates.

	March 31, 2022			December 31, 2021
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	1,501	2,700	1,386
Core deposit intangibles	29,050		18,972	29,050	18,076
SBA servicing assets	12,677		7,086	11,932	6,460
Other	100		40	100	33
Total	$	44,527	27,599	43,782	25,955
Unamortizable intangible assets:
Goodwill	$	364,263		364,263

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 March 31, 2022 with a remaining book value of $5.6 million. The Company recorded $0.7 million and $0.6 million in new servicing assets associated with the guaranteed portion of SBA loans sold during the first three months of 2022 and 2021, respectively. During the first three months of 2022 and 2021, the Company recorded $0.6 million and $0.5 million, respectively, in related servicing asset amortization expense. At March 31, 2022 and December 31, 2021, the Company serviced SBA loans totaling $426.6 million and $414.2 million, respectively, for others. There were no other loans serviced in any period presented.

Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $1.0 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively.

There were no changes to the carrying amounts of goodwill for the three months ended March 31, 2022.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. The Company performed the required annual impairment testing in the fourth quarter of 2021.

Management evaluated the events and circumstances in the first quarter of 2022 that could indicate that goodwill might be impaired and concluded that a subsequent interim test was not necessary.

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.

($ in thousands)	Estimated Amortization Expense
April 1, 2022 to December 31, 2022	$	2,666
2023	2,545
2024	1,718
2025	1,358
2026	962
Thereafter	2,088
Total	$	11,337

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Borrowings

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Borrowings

Borrowings

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2022 and December 31, 2021 (dollars are in thousands):

Description	Due date	Call Feature	March 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	68	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	942		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	222		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	42		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	339		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		3.00% at 03/31/22 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		2.22% at 03/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.24% at 03/31/22 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		3.08% at 03/31/22 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of March 31, 2022			$	71,017	2.56%
Unamortized discount on acquired borrowings			(3,602)
Total borrowings			$	67,415

Description	Due date	Call Feature	December 31, 2021		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	79	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	952		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	225		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	44		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	342		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		2.83% at 12/31/21 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		1.59% at 12/31/21 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.12% at 12/31/21 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		2.72% at 12/31/21 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of December 31, 2021			$	71,050	2.24%
Unamortized discount on acquired borrowings			(3,664)
Total borrowings			$	67,386

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Leases

3 Months Ended

Mar. 31, 2022

Lessee Disclosure [Abstract]

Leases

Leases

The Company enters into leases in the normal course of business. As of March 31, 2022, the Company leased 17 branch offices for which the land and buildings are leased and nine 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 April 2022 through May 2076, some of which include options for multiple five- and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.4 years as of March 31, 2022. Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense. 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. The short-term lease cost for each period presented was insignificant.

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 2.88% as of March 31, 2022.

Total operating lease expense was $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively. The right-of-use assets and lease liabilities were $20.4 million and $20.9 million as of March 31, 2022, respectively, and were $20.7 million and $21.2 million as of December 31, 2021, respectively.

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2022 are as follows.

($ in thousands)
April 1, 2022 to December 31, 2022	$	1,747
2023	2,360
2024	2,163
2025	1,706
2026	1,685
Thereafter	19,988
Total undiscounted lease payments	29,649
Less effect of discounting	(8,746)
Present value of estimated lease payments (lease liability)	$	20,903

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Pension Plans

3 Months Ended

Mar. 31, 2022

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 under these plans for service subsequent to 2012.

The Company recorded periodic pension cost totaling $51,000 and $191,000 for the three months ended March 31, 2022 and 2021, respectively. The following table contains the components of the pension cost.

	For the Three Months Ended March 31,
($ in thousands)	2022 Pension Plan		2021 Pension Plan	2022 SERP	2021 SERP	2022 Total Both Plans	2021 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	267		306	28	39	295	345
Expected return on plan assets	(288)		(325)	—	—	(288)	(325)
Amortization of net (gain)/loss	180		210	(136)	(39)	44	171
Net periodic pension cost	$	159	191	(108)	—	51	191

The service cost component of net periodic pension cost is included in salaries and benefits expense and all other components of net periodic pension cost are included in other noninterest expense.

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company did not contribute to the Pension Plan in the first three months of 2022 and does not expect to contribute to the Pension Plan in the remainder of 2022.

The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.

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Fair Value

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair 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 March 31, 2022.

($ in thousands) Description of Financial Instruments	Fair Value at March 31, 2022		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:
US Treasury	$	149,391	—	149,391	—
Government-sponsored enterprise securities	64,168		—	64,168	—
Mortgage-backed securities	2,425,911		—	2,425,911	—
Corporate bonds	45,578		—	45,578	—
Total available for sale securities	$	2,685,048	—	2,685,048	—
Presold mortgages in process of settlement	$	5,672	5,672	—	—
Nonrecurring
Individually evaluated loans	$	12,590	—	—	12,590

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2021.

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 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	$	69,179	—	69,179	—
Mortgage-backed securities	2,514,805		—	2,514,805	—
Corporate bonds	46,430		—	46,430	—
Total available for sale securities	$	2,630,414	—	2,630,414	—
Presold mortgages in process of settlement	$	19,257	19,257	—	—
Nonrecurring
Individually evaluated loans	$	11,583	—	—	11,583
Foreclosed real estate	364		—	—	364

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 U.S. Treasury bonds, 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.

Collateral-dependent loans — Fair values for collateral-dependent loans are measured on a non-recurring basis and are based on (1) the underlying collateral values securing the loans, adjusted for estimated selling costs, or (2) 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 credit 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 March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at March 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	6,909	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	5,681		PV of expected cash flows	Discount rates used in the calculation of the present value ("PV") of expected cash flows	4%-11% (6.50%)

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at December 31, 2021		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	7,326	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	4,257		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	4%-11% (6.22%)
Foreclosed real estate	364		Appraised value	Discounts applied for estimated costs to sell	10%

The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2022 and December 31, 2021 are as follows:

		March 31, 2022			December 31, 2021
($ 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	$	124,785	124,785	128,228	128,228
Due from banks, interest-bearing	Level 1	440,974		440,974	332,934	332,934
Securities held to maturity	Level 2	546,090		492,307	513,825	511,699
SBA and other loans held for sale	Level 2	3,630		4,010	61,003	62,044
Total loans, net of allowance	Level 3	5,982,629		5,957,829	6,002,926	5,990,235
Accrued interest receivable	Level 1	24,728		24,728	25,896	25,896
Bank-owned life insurance	Level 1	164,273		164,273	165,786	165,786
SBA Servicing Asset	Level 3	5,591		5,667	5,472	5,546
Deposits	Level 2	9,385,147		9,382,240	9,124,629	9,124,701
Borrowings	Level 2	67,415		59,593	67,386	61,295
Accrued interest payable	Level 2	576		576	607	607

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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Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company recorded total stock-based compensation expense of $547,000 and $397,000 for the three months ended March 31, 2022 and 2021, respectively. In addition, the Company recognized $126,000 and $91,000 of income tax benefits related to stock-based compensation expense for the three months ended March 31, 2022 and 2021, respectively.

At March 31, 2022, 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 March 31, 2022, the Equity Plan had 431,852 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 stock, restricted performance stock, unrestricted stock, and performance units.

Recent equity awards to employees have been made in the form of shares of restricted stock awards with service 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.

In addition to employee equity awards, the Company's practice is to grant common shares, valued at approximately $32,000, to each non-employee director (currently 13 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.

The following table presents information regarding the activity for the first three months of 2022 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	206,331	$	35.25
Granted during the period	20,494	45.88
Vested during the period	(6,997)	36.05
Forfeited or expired during the period	(7,115)	31.50
Nonvested at March 31, 2022	212,713	$	36.33

Total unrecognized compensation expense as of March 31, 2022 amounted to $4.2 million with a weighted-average remaining term of 2.3 years. For the nonvested awards that are outstanding at March 31, 2022, the Company expects to record $2.1 million in compensation expense in the next twelve months, $1.6 million of which is expected to be recorded in the remaining quarters of 2022.

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Shareholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Stock Repurchases

During the first three months of 2022, the Company did not repurchase any shares of the Company's common stock.

During the first three 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 in January 2021.

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Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share ("EPS"):

	For the Three Months Ended March 31,
	2022					2021
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	33,969				$	28,194
Less: income allocated to participating securities	(198)					(178)
Basic EPS per common share	$	33,771	35,433,739	$	0.95	$	28,016	28,357,809	$	0.99
Diluted EPS:
Net income	$	33,969	35,433,739			$	28,194	28,357,809
Effect of Dilutive Securities	—		207,239			—		180,044
Diluted EPS per common share	$	33,969	35,640,978	$	0.95	$	28,194	28,537,853	$	0.99

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive loss for the Company are as follows:

($ in thousands)	March 31, 2022		December 31, 2021
Unrealized loss on securities available for sale	$	(213,862)	(32,067)
Deferred tax asset	49,145		7,369
Net unrealized loss on securities available for sale	(164,717)		(24,698)
Postretirement plans liability	(309)		(353)
Deferred tax asset	71		81
Net postretirement plans liability	(238)		(272)
Total accumulated other comprehensive loss	$	(164,955)	(24,970)

The following table discloses the changes in accumulated other comprehensive loss for the three months ended March 31, 2022 (all amounts are net of tax).

($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2022	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(140,019)		—	(140,019)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current-period other comprehensive (loss) income	(140,019)		34	(139,985)
Ending balance at March 31, 2022	$	(164,717)	(238)	(164,955)

The following table discloses the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2021	$	15,749	(1,399)	14,350
Other comprehensive loss before reclassifications	(18,666)		—	(18,666)
Amounts reclassified from accumulated other comprehensive income	—		131	131
Net current-period other comprehensive (loss) income	(18,666)		131	(18,535)
Ending balance at March 31, 2021	$	(2,917)	(1,268)	(4,185)

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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Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

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 months ended March 31, 2022 and 2021. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended
($ in thousands)	March 31, 2022		March 31, 2021
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts:	$	3,541	2,733
Other service charges, commissions, and fees:
Interchange income	4,711		3,524
Other service charges and fees	2,263		1,998
Commissions from sales of insurance and financial products:
Insurance income	—		1,326
Wealth management income	945		864
SBA consulting fees	780		2,764
Noninterest income (in-scope of ASC 606)	12,240		13,209
Noninterest income (out-of-scope of ASC 606)	7,011		7,460
Total noninterest income	$	19,251	20,669

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 wealth management products and also earned commissions from the sale of insurance policies until the sale of First Bank Insurance Services on June 30, 2021.

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.

Insurance income, which was earned by the Company until June 30, 2021, generally consisted of commissions from the sale of insurance policies and performance-based commissions from insurance companies. The Company recognized commission income from the sale of insurance policies when it acted 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 recognized the revenue. Performance-based commissions from insurance companies were recognized at a point in time as policies are sold.

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.

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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Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2022

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 the consolidated financial position of the Company as of March 31, 2022, the consolidated results of operations for the three months ended March 31, 2022 and 2021, and the consolidated cash flows for the three months ended March 31, 2022 and 2021. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year. Reference is made to Note 1 of the 2021 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.

Reclassifications

To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or shareholders' equity as previously reported.

Accounting Standards Adopted in 2022 and Accounting Standards Pending Adoption

Accounting Standards Adopted in 2022

The Company did not adopt any accounting standards during the first three months of 2022.

Accounting Standards Pending Adoption

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This Accounting Standards Update ("ASU") eliminates the accounting guidance for troubled debt restructurings by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years and early adoption is permitted. The entity must have adopted the amendments in ASU 2016-13 ("CECL") to adopt the amendments in this ASU. The Company is currently evaluating the impact of

adopting the new guidance on the consolidated financial statements but does not expect it to have a material effect on its financial statements.

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Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Book Values and Fair Values of Available-for-Sale Securities

The book values and approximate fair values of investment securities at March 31, 2022 and December 31, 2021 are summarized as follows:

($ in thousands)	March 31, 2022					December 31, 2021
	Amortized Cost		Fair Value	Unrealized		Amortized Cost		Fair Value	Unrealized
				Gains	(Losses)				Gains	(Losses)
Securities available for sale:
US Treasuries	$	149,534	149,391	—	(143)	$	—	—	—	—
Government-sponsored enterprise securities	71,953		64,168	—	(7,785)	71,951		69,179	—	(2,772)
Mortgage-backed securities	2,632,054		2,425,911	349	(206,492)	2,545,150		2,514,805	9,489	(39,834)
Corporate bonds	45,369		45,578	367	(158)	45,380		46,430	1,106	(56)
Total available for sale	$	2,898,910	2,685,048	716	(214,578)	2,662,481		2,630,414	10,595	(42,662)
Securities held to maturity:
Mortgage-backed securities	$	18,662	18,513	1	(150)	20,260		20,845	585	—
State and local governments	527,428		473,794	19	(53,653)	493,565		490,854	2,955	(5,666)
Total held to maturity	$	546,090	492,307	20	(53,803)	513,825		511,699	3,540	(5,666)

Book Values and Fair Values of Held-to-Maturity Securities

The book values and approximate fair values of investment securities at March 31, 2022 and December 31, 2021 are summarized as follows:

($ in thousands)	March 31, 2022					December 31, 2021
	Amortized Cost		Fair Value	Unrealized		Amortized Cost		Fair Value	Unrealized
				Gains	(Losses)				Gains	(Losses)
Securities available for sale:
US Treasuries	$	149,534	149,391	—	(143)	$	—	—	—	—
Government-sponsored enterprise securities	71,953		64,168	—	(7,785)	71,951		69,179	—	(2,772)
Mortgage-backed securities	2,632,054		2,425,911	349	(206,492)	2,545,150		2,514,805	9,489	(39,834)
Corporate bonds	45,369		45,578	367	(158)	45,380		46,430	1,106	(56)
Total available for sale	$	2,898,910	2,685,048	716	(214,578)	2,662,481		2,630,414	10,595	(42,662)
Securities held to maturity:
Mortgage-backed securities	$	18,662	18,513	1	(150)	20,260		20,845	585	—
State and local governments	527,428		473,794	19	(53,653)	493,565		490,854	2,955	(5,666)
Total held to maturity	$	546,090	492,307	20	(53,803)	513,825		511,699	3,540	(5,666)

Schedule of Information Regarding Securities with Unrealized Losses

The following table presents information regarding securities with unrealized losses at March 31, 2022:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasuries	$	149,391	143	—	—	149,391	143
Government-sponsored enterprise securities	19,855		2,104	44,313	5,681	64,168	7,785
Mortgage-backed securities	1,656,529		133,422	705,932	73,220	2,362,461	206,642
Corporate bonds	13,914		86	928	72	14,842	158
State and local governments	431,433		46,491	40,482	7,162	471,915	53,653
Total unrealized loss position	$	2,271,122	182,246	791,655	86,135	3,062,777	268,381

The following table presents information regarding securities with unrealized losses at December 31, 2021:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Government-sponsored enterprise securities	$	21,436	522	47,743	2,250	69,179	2,772
Mortgage-backed securities	1,773,022		25,977	404,484	13,857	2,177,506	39,834
Corporate bonds	999		1	945	55	1,944	56
State and local governments	228,279		3,797	34,398	1,869	262,677	5,666
Total unrealized loss position	$	2,023,736	30,297	487,570	18,031	2,511,306	48,328

Schedule of Book Values and Approximate Fair Values of Investment Securities by Contractual Maturity

The book values and approximate fair values of investment securities at March 31, 2022, 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.

	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Securities
Due within one year	$	26,102	26,381	436	440
Due after one year but within five years	152,051		151,996	—	—
Due after five years but within ten years	87,703		79,832	17,141	15,988
Due after ten years	1,000		928	509,851	457,366
Mortgage-backed securities	2,632,054		2,425,911	18,662	18,513
Total securities	$	2,898,910	2,685,048	546,090	492,307

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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Summary of Major Categories of Total Loans Outstanding

The following is a summary of the major categories of total loans outstanding:

($ in thousands)	March 31, 2022				December 31, 2021
	Amount		Percentage		Amount		Percentage
All  loans:
Commercial, financial, and agricultural	$	603,454	10	%	$	648,997	11	%
Real estate – construction, land development & other land loans	795,886		13	%	828,549		13	%
Real estate – mortgage – residential (1-4 family) first mortgages	1,045,167		17	%	1,021,966		17	%
Real estate – mortgage – home equity loans / lines of credit	329,348		6	%	331,932		5	%
Real estate – mortgage – commercial and other	3,234,949		53	%	3,194,737		53	%
Consumer loans	56,822		1	%	57,238		1	%
Subtotal	6,065,626		100	%	6,083,419		100	%
Unamortized net deferred loan fees	(928)				(1,704)
Total loans	$	6,064,698			$	6,081,715

Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below.

($ in thousands)	March 31, 2022		December 31, 2021
Guaranteed portions of non-PPP SBA loans included in table above	$	33,024	48,377
Unguaranteed portions of non-PPP SBA loans included in table above	126,936		122,772
Total non-PPP SBA loans included in the table above	$	159,960	171,149
Sold portions of SBA loans with servicing retained - not included in tables above	$	426,601	414,240

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.

($ in thousands)	March 31, 2022		December 31, 2021
Nonaccrual loans	$	33,460	34,696
TDRs - accruing	12,727		13,866
Accruing loans > 90 days past due	—		1,004
Total nonperforming loans	46,187		49,566
Foreclosed real estate	2,750		3,071
Total nonperforming assets	$	48,937	52,637

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2022.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,911	8,661	12,572
Real estate – construction, land development & other land loans	928		126	1,054
Real estate – mortgage – residential (1-4 family) first mortgages	161		3,559	3,720
Real estate – mortgage – home equity loans / lines of credit	—		807	807
Real estate – mortgage – commercial and other	8,351		6,865	15,216
Consumer loans	—		91	91
Total	$	13,351	20,109	33,460

The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2021.

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial, financial, and agricultural	$	3,947	8,205	12,152
Real estate – construction, land development & other land loans	495		137	632
Real estate – mortgage – residential (1-4 family) first mortgages	858		4,040	4,898
Real estate – mortgage – home equity loans / lines of credit	—		694	694
Real estate – mortgage – commercial and other	7,648		8,583	16,231
Consumer loans	—		89	89
Total	$	12,948	21,748	34,696

Summary of Accrued Interest Receivables Written Off

The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:

($ in thousands)	For the Three Months Ended March 31, 2022		For the Year Ended December 31, 2021	For the Three Months Ended March 31, 2021
Commercial, financial, and agricultural	$	8	195	64
Real estate – construction, land development & other land loans	12		6	—
Real estate – mortgage – residential (1-4 family) first mortgages	10		31	5
Real estate – mortgage – home equity loans / lines of credit	2		14	4
Real estate – mortgage – commercial and other	100		453	220
Consumer loans	—		—	—
Total	$	132	699	293

Schedule of Analysis of Payment Status

The following table presents an analysis of the payment status of the Company’s loans as of March 31, 2022.

($ 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	$	389	105	—	12,572	590,388	603,454
Real estate – construction, land development & other land loans	1,492		—	—	1,054	793,340	795,886
Real estate – mortgage – residential (1-4 family) first mortgages	8,739		20	—	3,720	1,032,688	1,045,167
Real estate – mortgage – home equity loans / lines of credit	891		36	—	807	327,614	329,348
Real estate – mortgage – commercial and other	2,294		—	—	15,216	3,217,439	3,234,949
Consumer loans	103		134	—	91	56,494	56,822
Total	$	13,908	295	—	33,460	6,017,963	6,065,626
Unamortized net deferred loan fees							(928)
Total loans							$	6,064,698

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2021.

($ 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	$	377	93	—	12,152	636,375	648,997
Real estate – construction, land development & other land loans	4,046		—	286	632	823,585	828,549
Real estate – mortgage – residential (1-4 family) first mortgages	6,571		1,488	—	4,898	1,009,009	1,021,966
Real estate – mortgage – home equity loans / lines of credit	489		124	718	694	329,907	331,932
Real estate – mortgage – commercial and other	164		1,496	—	16,231	3,176,846	3,194,737
Consumer loans	116		62	—	89	56,971	57,238
Total	$	11,763	3,263	1,004	34,696	6,032,693	6,083,419
Unamortized net deferred loan fees							(1,704)
Total loans							$	6,081,715

Analysis of Collateral-Dependent Loans

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2022.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	9,508	—	—	9,508
Real estate – construction, land development & other land loans	—		—	928	—	928
Real estate – mortgage – residential (1-4 family) first mortgages	161		—	—	—	161
Real estate – mortgage – commercial and other	—		—	—	11,081	11,081
Total	$	161	9,508	928	11,081	21,678

The following table presents an analysis of collateral-dependent loans of the Company as of December 31, 2021.

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial, financial, and agricultural	$	—	7,886	—	—	7,886
Real estate – construction, land development & other land loans	—		—	533	—	533
Real estate – mortgage – residential (1-4 family) first mortgages	871		—	—	—	871
Real estate – mortgage – commercial and other	—		—	—	10,743	10,743
Total	$	871	7,886	533	10,743	20,033

Schedule of Allowance for Loan Losses

The following table presents the activity in the Allowance for Credit Losses ("ACL") on loans for each of the periods indicated.

($ 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 March 31, 2022
Beginning balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789
Charge-offs	(790)		—	—	(41)	(45)	(167)	—	(1,043)
Recoveries	247		137	4	233	155	47	—	823
Provisions / (Reversals)	307		(599)	(531)	(2,455)	6,875	(97)	—	3,500
Ending balance	$	16,013	16,057	8,159	2,074	37,327	2,439	—	82,069

($ 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, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Allowance for acquired PCD loans	2,917		165	222	92	1,489	10	—	4,895
Charge-offs	(3,722)		(245)	(273)	(400)	(2,295)	(667)	—	(7,602)
Recoveries	1,744		948	761	578	533	358	—	4,922
Provisions/(Reversals)	927		4,156	(2,656)	(888)	7,269	803	—	9,611
Ending balance	$	16,249	16,519	8,686	4,337	30,342	2,656	—	78,789

($ 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 March 31, 2021
Beginning balance	$	11,316	5,355	8,048	2,375	23,603	1,478	213	52,388
Adjustment for implementation of CECL	3,067		6,140	2,584	2,580	(257)	674	(213)	14,575
Charge-offs	(1,438)		(66)	(38)	(131)	(510)	(134)	—	(2,317)
Recoveries	514		294	87	11	262	35	—	1,203
Provisions/(Reversals)	147		(1,589)	(1,685)	(526)	3,409	244	—	—
Ending balance	$	13,606	10,134	8,996	4,309	26,507	2,297	—	65,849

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2022.

($ in thousands)	Total Allowance for Credit Losses - Unfunded Loan Commitments
Beginning balance at December 31, 2021	$	13,506
Charge-offs	—
Recoveries	—
Reversal of provision for unfunded commitments	(1,500)
Ending balance at March 31, 2022	$	12,006

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:

	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.

In the tables that follow, 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 tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition.

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of March 31, 2022
Commercial, financial, and agricultural
Pass	$	35,980	177,169	105,179	66,635	62,972	29,478	105,225	582,638
Special Mention	—		125	399	621	2,633	216	2,504	6,498
Classified	119		2,454	1,417	2,136	6,908	577	707	14,318
Total commercial, financial, and agricultural	36,099		179,748	106,995	69,392	72,513	30,271	108,436	603,454
Real estate – construction, land development & other land loans
Pass	113,568		488,287	94,674	59,914	9,256	12,619	9,836	788,154
Special Mention	—		38	726	4,117	107	98	5	5,091
Classified	1,416		148	45	944	71	17	—	2,641
Total real estate – construction, land development & other land loans	114,984		488,473	95,445	64,975	9,434	12,734	9,841	795,886
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	53,280		277,391	206,074	114,970	76,281	290,677	8,318	1,026,991
Special Mention	—		512	448	328	201	3,331	96	4,916
Classified	136		391	480	895	940	9,410	1,008	13,260
Total real estate – mortgage – residential (1-4 family) first mortgages	53,416		278,294	207,002	116,193	77,422	303,418	9,422	1,045,167
Real estate – mortgage – home equity loans / lines of credit
Pass	306		2,258	410	299	1,254	2,244	315,092	321,863
Special Mention	48		187	—	—	—	18	1,112	1,365
Classified	18		163	96	75	—	327	5,441	6,120
Total real estate – mortgage – home equity loans / lines of credit	372		2,608	506	374	1,254	2,589	321,645	329,348
Real estate – mortgage – commercial and other
Pass	275,364		1,315,875	716,571	307,705	184,889	337,011	57,982	3,195,397
Special Mention	521		2,042	4,737	4,849	3,708	3,103	1,340	20,300
Classified	124		4,979	249	2,953	5,910	4,832	205	19,252
Total real estate – mortgage – commercial and other	276,009		1,322,896	721,557	315,507	194,507	344,946	59,527	3,234,949
Consumer loans
Pass	5,115		29,404	6,453	2,313	1,407	923	10,998	56,613
Special Mention	—		—	—	—	—	—	—	—
Classified	—		141	11	1	—	17	39	209
Total consumer loans	5,115		29,545	6,464	2,314	1,407	940	11,037	56,822
Total	$	485,995	2,301,564	1,137,969	568,755	356,537	694,898	519,908	6,065,626
Unamortized net deferred loan fees									(928)
Total loans									6,064,698

	Term Loans by Year of Origination
($ in thousands)	2021		2020	2019	2018	2017	Prior	Revolving	Total
As of December 31, 2021
Commercial, financial, and agricultural
Pass	$	204,945	138,540	71,369	66,645	16,009	17,492	112,933	627,933
Special Mention	225		1,255	1,313	2,729	225	9	2,348	8,104
Classified	1,609		793	1,703	7,096	511	96	1,152	12,960
Total commercial, financial, and agricultural	206,779		140,588	74,385	76,470	16,745	17,597	116,433	648,997
Real estate – construction, land development & other land loans
Pass	573,613		133,888	69,066	12,455	9,764	8,190	13,737	820,713
Special Mention	41		737	5,095	110	104	2	9	6,098
Classified	1,541		49	47	83	14	4	—	1,738
Total real estate – construction, land development & other land loans	575,195		134,674	74,208	12,648	9,882	8,196	13,746	828,549
Real estate – mortgage – residential (1-4 family) first mortgages
Pass	241,619		224,617	120,097	82,531	86,074	234,950	11,051	1,000,939
Special Mention	888		615	516	229	323	3,237	94	5,902
Classified	419		156	535	1,185	653	11,246	931	15,125
Total real estate – mortgage – residential (1-4 family) first mortgages	242,926		225,388	121,148	83,945	87,050	249,433	12,076	1,021,966
Real estate – mortgage – home equity loans / lines of credit
Pass	3,111		498	439	1,304	245	1,649	317,319	324,565
Special Mention	194		—	15	—	—	19	1,341	1,569
Classified	75		97	71	—	—	607	4,948	5,798
Total real estate – mortgage – home equity loans / lines of credit	3,380		595	525	1,304	245	2,275	323,608	331,932
Real estate – mortgage – commercial and other
Pass	1,328,156		796,992	355,885	211,118	197,165	197,659	66,104	3,153,079
Special Mention	1,759		4,849	5,801	3,741	2,072	1,801	1,440	21,463
Classified	7,147		413	2,110	6,025	3,897	603	—	20,195
Total real estate – mortgage – commercial and other	1,337,062		802,254	363,796	220,884	203,134	200,063	67,544	3,194,737
Consumer loans
Pass	14,960		25,431	2,965	1,722	673	525	10,810	57,086
Special Mention	—		4	—	—	—	—	—	4
Classified	—		73	—	8	—	25	42	148
Total consumer loans	14,960		25,508	2,965	1,730	673	550	10,852	57,238
Total	$	2,380,302	1,329,007	637,027	396,981	317,729	478,114	544,259	6,083,419
Unamortized net deferred loan fees									(1,704)
Total loans									6,081,715

Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring

The following table presents information related to loans modified in a TDR during the three months ended March 31, 2022 and 2021.

($ in thousands)	For the three months ended March 31, 2022					For the three months ended March 31, 2021
	Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts	Pre- Modification Restructured Balances		Post- Modification Restructured Balances
TDRs – Accruing
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	—	—		—		1	160		160
TDRs – Nonaccrual
Commercial, financial, and agricultural	1	41		41		1	111		108
Real estate – mortgage – residential (1-4 family) first mortgages	1	36		36		—	—		—
Real estate – mortgage – commercial and other	1	540		540		—	—		—
Total TDRs arising during period	4	$	653	$	653	2	$	271	$	268

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021, and the carrying amount of unamortized intangible assets as of those same dates.

	March 31, 2022			December 31, 2021
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	1,501	2,700	1,386
Core deposit intangibles	29,050		18,972	29,050	18,076
SBA servicing assets	12,677		7,086	11,932	6,460
Other	100		40	100	33
Total	$	44,527	27,599	43,782	25,955
Unamortizable intangible assets:
Goodwill	$	364,263		364,263

Schedule of the Estimated Amortization Expense

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.

($ in thousands)	Estimated Amortization Expense
April 1, 2022 to December 31, 2022	$	2,666
2023	2,545
2024	1,718
2025	1,358
2026	962
Thereafter	2,088
Total	$	11,337

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Debt

The following tables present information regarding the Company’s outstanding borrowings at March 31, 2022 and December 31, 2021 (dollars are in thousands):

Description	Due date	Call Feature	March 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	68	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	942		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	222		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	42		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	164		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	339		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		3.00% at 03/31/22 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		2.22% at 03/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.24% at 03/31/22 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		3.08% at 03/31/22 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of March 31, 2022			$	71,017	2.56%
Unamortized discount on acquired borrowings			(3,602)
Total borrowings			$	67,415

Description	Due date	Call Feature	December 31, 2021		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	79	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	952		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	225		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	44		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	342		0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		2.83% at 12/31/21 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		1.59% at 12/31/21 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.12% at 12/31/21 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		2.72% at 12/31/21 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of December 31, 2021			$	71,050	2.24%
Unamortized discount on acquired borrowings			(3,664)
Total borrowings			$	67,386

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 are as follows.

($ in thousands)
April 1, 2022 to December 31, 2022	$	1,747
2023	2,360
2024	2,163
2025	1,706
2026	1,685
Thereafter	19,988
Total undiscounted lease payments	29,649
Less effect of discounting	(8,746)
Present value of estimated lease payments (lease liability)	$	20,903

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Pension Plans (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Schedule of the Components of Pension Costs

The following table contains the components of the pension cost.

	For the Three Months Ended March 31,
($ in thousands)	2022 Pension Plan		2021 Pension Plan	2022 SERP	2021 SERP	2022 Total Both Plans	2021 Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	267		306	28	39	295	345
Expected return on plan assets	(288)		(325)	—	—	(288)	(325)
Amortization of net (gain)/loss	180		210	(136)	(39)	44	171
Net periodic pension cost	$	159	191	(108)	—	51	191

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Financial Instruments 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 March 31, 2022.

($ in thousands) Description of Financial Instruments	Fair Value at March 31, 2022		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:
US Treasury	$	149,391	—	149,391	—
Government-sponsored enterprise securities	64,168		—	64,168	—
Mortgage-backed securities	2,425,911		—	2,425,911	—
Corporate bonds	45,578		—	45,578	—
Total available for sale securities	$	2,685,048	—	2,685,048	—
Presold mortgages in process of settlement	$	5,672	5,672	—	—
Nonrecurring
Individually evaluated loans	$	12,590	—	—	12,590

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2021.

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 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	$	69,179	—	69,179	—
Mortgage-backed securities	2,514,805		—	2,514,805	—
Corporate bonds	46,430		—	46,430	—
Total available for sale securities	$	2,630,414	—	2,630,414	—
Presold mortgages in process of settlement	$	19,257	19,257	—	—
Nonrecurring
Individually evaluated loans	$	11,583	—	—	11,583
Foreclosed real estate	364		—	—	364

Schedule of Significant Unobservable Inputs

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at March 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	6,909	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	5,681		PV of expected cash flows	Discount rates used in the calculation of the present value ("PV") of expected cash flows	4%-11% (6.50%)

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at December 31, 2021		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	7,326	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	4,257		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	4%-11% (6.22%)
Foreclosed real estate	364		Appraised value	Discounts applied for estimated costs to sell	10%

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 March 31, 2022 and December 31, 2021 are as follows:

		March 31, 2022			December 31, 2021
($ 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	$	124,785	124,785	128,228	128,228
Due from banks, interest-bearing	Level 1	440,974		440,974	332,934	332,934
Securities held to maturity	Level 2	546,090		492,307	513,825	511,699
SBA and other loans held for sale	Level 2	3,630		4,010	61,003	62,044
Total loans, net of allowance	Level 3	5,982,629		5,957,829	6,002,926	5,990,235
Accrued interest receivable	Level 1	24,728		24,728	25,896	25,896
Bank-owned life insurance	Level 1	164,273		164,273	165,786	165,786
SBA Servicing Asset	Level 3	5,591		5,667	5,472	5,546
Deposits	Level 2	9,385,147		9,382,240	9,124,629	9,124,701
Borrowings	Level 2	67,415		59,593	67,386	61,295
Accrued interest payable	Level 2	576		576	607	607

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Outstanding Restricted Stock

The following table presents information regarding the activity for the first three months of 2022 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2022	206,331	$	35.25
Granted during the period	20,494	45.88
Vested during the period	(6,997)	36.05
Forfeited or expired during the period	(7,115)	31.50
Nonvested at March 31, 2022	212,713	$	36.33

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

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 ("EPS"):

	For the Three Months Ended March 31,
	2022					2021
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	33,969				$	28,194
Less: income allocated to participating securities	(198)					(178)
Basic EPS per common share	$	33,771	35,433,739	$	0.95	$	28,016	28,357,809	$	0.99
Diluted EPS:
Net income	$	33,969	35,433,739			$	28,194	28,357,809
Effect of Dilutive Securities	—		207,239			—		180,044
Diluted EPS per common share	$	33,969	35,640,978	$	0.95	$	28,194	28,537,853	$	0.99

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive loss for the Company are as follows:

($ in thousands)	March 31, 2022		December 31, 2021
Unrealized loss on securities available for sale	$	(213,862)	(32,067)
Deferred tax asset	49,145		7,369
Net unrealized loss on securities available for sale	(164,717)		(24,698)
Postretirement plans liability	(309)		(353)
Deferred tax asset	71		81
Net postretirement plans liability	(238)		(272)
Total accumulated other comprehensive loss	$	(164,955)	(24,970)

The following table discloses the changes in accumulated other comprehensive loss for the three months ended March 31, 2022 (all amounts are net of tax).

($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2022	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(140,019)		—	(140,019)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current-period other comprehensive (loss) income	(140,019)		34	(139,985)
Ending balance at March 31, 2022	$	(164,717)	(238)	(164,955)

The following table discloses the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance at January 1, 2021	$	15,749	(1,399)	14,350
Other comprehensive loss before reclassifications	(18,666)		—	(18,666)
Amounts reclassified from accumulated other comprehensive income	—		131	131
Net current-period other comprehensive (loss) income	(18,666)		131	(18,535)
Ending balance at March 31, 2021	$	(2,917)	(1,268)	(4,185)

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Noninterest Income

The following table presents the Company’s sources of noninterest income for the three months ended March 31, 2022 and 2021. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended
($ in thousands)	March 31, 2022		March 31, 2021
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts:	$	3,541	2,733
Other service charges, commissions, and fees:
Interchange income	4,711		3,524
Other service charges and fees	2,263		1,998
Commissions from sales of insurance and financial products:
Insurance income	—		1,326
Wealth management income	945		864
SBA consulting fees	780		2,764
Noninterest income (in-scope of ASC 606)	12,240		13,209
Noninterest income (out-of-scope of ASC 606)	7,011		7,460
Total noninterest income	$	19,251	20,669

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Securities (Summary of Book Values and Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value
Amortized Cost	$ 2,898,910	$ 2,662,481
Fair Value	2,685,048	2,630,414
Unrealized Gains	716	10,595
Unrealized (Losses)	(214,578)	(42,662)
Securities held to maturity:
Amortized Cost	546,090	513,825
Fair Value	492,307	511,699
Unrealized Gains	20	3,540
Unrealized (Losses)	(53,803)	(5,666)
US Treasuries
Fair Value
Amortized Cost	149,534	0
Fair Value	149,391	0
Unrealized Gains	0	0
Unrealized (Losses)	(143)	0
Government-sponsored enterprise securities
Fair Value
Amortized Cost	71,953	71,951
Fair Value	64,168	69,179
Unrealized Gains	0	0
Unrealized (Losses)	(7,785)	(2,772)
Mortgage-backed securities
Fair Value
Amortized Cost	2,632,054	2,545,150
Fair Value	2,425,911	2,514,805
Unrealized Gains	349	9,489
Unrealized (Losses)	(206,492)	(39,834)
Securities held to maturity:
Amortized Cost	18,662	20,260
Fair Value	18,513	20,845
Unrealized Gains	1	585
Unrealized (Losses)	(150)	0
Corporate bonds
Fair Value
Amortized Cost	45,369	45,380
Fair Value	45,578	46,430
Unrealized Gains	367	1,106
Unrealized (Losses)	(158)	(56)
State and local governments
Securities held to maturity:
Amortized Cost	527,428	493,565
Fair Value	473,794	490,854
Unrealized Gains	19	2,955
Unrealized (Losses)	$ (53,653)	$ (5,666)

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Securities (Narrative) (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) security $ / shares shares	Dec. 31, 2021 USD ($) security
Debt and Equity Securities, FV-NI [Line Items]
Private mortgage-backed security fair value	$ 900,000	$ 900,000
Number of securities held in an unrealized loss position | security	600	371
Investment securities, pledged as collateral for public deposits	$ 852,800,000	$ 951,400,000
FHLB stock and FRB stock, cost	32,200,000	22,300,000
FHLB, cost	5,300,000	4,600,000
FRB stock	$ 26,800,000	$ 17,800,000
Visa, Inc | Common Class B
Debt and Equity Securities, FV-NI [Line Items]
Stock owned (in shares) | shares	12,356
Carrying value of shares	$ 0
Visa, Inc | Common Class A
Debt and Equity Securities, FV-NI [Line Items]
Conversion price (in dollars per share) | $ / shares	$ 1.62
Conversion of stock (in shares) | shares	19,993

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Securities - Schedule of Information Regarding Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, AFS and HTM	$ 2,271,122	$ 2,023,736
Unrealized Losses, AFS and HTM	182,246	30,297
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, AFS and HTM	791,655	487,570
Unrealized Losses, AFS and HTM	86,135	18,031
Total
Fair Value, AFS and HTM	3,062,777	2,511,306
Unrealized Losses, AFS and HTM	268,381	48,328
US Treasuries
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, AFS	149,391
Unrealized Losses, AFS	143
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, AFS	0
Unrealized Losses, AFS	0
Total
Fair Value, AFS	149,391
Unrealized Losses, AFS	143
Government-sponsored enterprise securities
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, AFS	19,855	21,436
Unrealized Losses, AFS	2,104	522
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, AFS	44,313	47,743
Unrealized Losses, AFS	5,681	2,250
Total
Fair Value, AFS	64,168	69,179
Unrealized Losses, AFS	7,785	2,772
Mortgage-backed securities
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, AFS and HTM	1,656,529	1,773,022
Unrealized Losses, AFS and HTM	133,422	25,977
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, AFS and HTM	705,932	404,484
Unrealized Losses, AFS and HTM	73,220	13,857
Total
Fair Value, AFS and HTM	2,362,461	2,177,506
Unrealized Losses, AFS and HTM	206,642	39,834
Corporate bonds
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, AFS	13,914	999
Unrealized Losses, AFS	86	1
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, AFS	928	945
Unrealized Losses, AFS	72	55
Total
Fair Value, AFS	14,842	1,944
Unrealized Losses, AFS	158	56
State and local governments
Securities in an Unrealized Loss Position for Less than 12 Months
Fair Value, HTM	431,433	228,279
Unrealized Losses, HTM	46,491	3,797
Securities in an Unrealized Loss Position for More than 12 Months
Fair Value, HTM	40,482	34,398
Unrealized Losses, HTM	7,162	1,869
Total
Fair Value, HTM	471,915	262,677
Unrealized Losses, HTM	$ 53,653	$ 5,666

XML

Securities - Schedule of Book Values and Fair Values of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Due within one year	$ 26,102
Due after one year but within five years	152,051
Due after five years but within ten years	87,703
Due after ten years	1,000
Mortgage-backed securities	2,632,054
Amortized Cost	2,898,910	$ 2,662,481
Fair Value
Due within one year	26,381
Due after one year but within five years	151,996
Due after five years but within ten years	79,832
Due after ten years	928
Mortgage-backed securities	2,425,911
Total securities	2,685,048	2,630,414
Amortized Cost
Due within one year	436
Due after one year but within five years	0
Due after five years but within ten years	17,141
Due after ten years	509,851
Mortgage-backed securities	18,662
Amortized Cost	546,090	513,825
Fair Value
Due within one year	440
Due after one year but within five years	0
Due after five years but within ten years	15,988
Due after ten years	457,366
Mortgage-backed securities	18,513
Total securities	$ 492,307	$ 511,699

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Summary of Major Categories of Total Loans Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 6,065,626	$ 6,083,419
Unamortized net deferred loan fees	(928)	(1,704)
Total loans	$ 6,064,698	$ 6,081,715
Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	100.00%	100.00%
Total non-PPP SBA loans included in the table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 159,960	$ 171,149
Guaranteed portions of non-PPP SBA loans included in table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	33,024	48,377
Unguaranteed portions of non-PPP SBA loans included in table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	126,936	122,772
Sold portions of SBA loans with servicing retained - not included in tables above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	426,601	414,240
Commercial, financial, and agricultural
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 603,454	$ 648,997
Commercial, financial, and agricultural | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	10.00%	11.00%
Real estate, commercial | Real estate – construction, land development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 795,886	$ 828,549
Real estate, commercial | Real estate – construction, land development & other land loans | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	13.00%	13.00%
Real estate, commercial | Real estate – mortgage – commercial and other
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 3,234,949	$ 3,194,737
Real estate, commercial | Real estate – mortgage – commercial and other | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	53.00%	53.00%
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 1,045,167	$ 1,021,966
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	17.00%	17.00%
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 329,348	$ 331,932
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	6.00%	5.00%
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 56,822	$ 57,238
Consumer loans | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	1.00%	1.00%

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Narrative (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
PPP loans	$ 15,600,000	$ 39,000,000
Unamortized net deferred loan fees	928,000	1,704,000
Total loans	6,064,698,000	6,081,715,000
Loans pledged as collateral	5,400,000,000	4,300,000,000
Unamortized discount on acquired loans	15,600,000	17,200,000
Interest income on nonaccrual loans	0	0
Net book balance of individually evaluated loans on nonaccrual, threshold amount for designation as collateral dependent loans	350,000
Allowance for credit losses on loans	$ 82,069,000	78,789,000	$ 65,849,000	$ 52,388,000
Troubled Debt Restructuring
Loans and Leases Receivable Disclosure [Line Items]
Number of loans modified as TDR with commitments to lend funds | loan	2
Commitment value for loans modified as TDR		0
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans	$ 2,439,000	2,656,000	2,297,000	1,478,000
Commercial, financial, and agricultural
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans	$ 16,013,000	16,249,000	$ 13,606,000	$ 11,316,000
Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans	90.00%
Real Estate | Receivable Benchmark | Collateral Type Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Concentration risk percentage	89.00%
Hotel | Minimum
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans	10.00%
Hotel | Maximum
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans	25.00%
Non Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans	75.00%
Officers and Directors
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 5,800,000
Due from related parties	6,500,000	600,000
Advances to related parties	36,000
Repayments received from related parties	21,000
Credit Card Loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 38,800,000	37,900,000
Credit Card Loans | Receivable Benchmark | Receivable Type Concentration Risk | Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Concentration risk percentage	57.00%
Credit Card Loans | Receivable Benchmark | Receivable Type Concentration Risk | Commercial, financial, and agricultural
Loans and Leases Receivable Disclosure [Line Items]
Concentration risk percentage	43.00%
Residential Mortgage Loans
Loans and Leases Receivable Disclosure [Line Items]
Presold mortgages in process of settlement	$ 1,000,000	1,500,000
Unfunded Loan Commitment
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans	12,006,000	13,506,000
SBA PPP loans
Loans and Leases Receivable Disclosure [Line Items]
Unamortized net deferred loan fees	1,300,000	2,600,000
SBA Loans
Loans and Leases Receivable Disclosure [Line Items]
Remaining unaccreted discount	$ 5,900,000	$ 6,000,000

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Summary of Nonperforming Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans	$ 33,460	$ 34,696
Total loans	6,064,698	6,081,715
Foreclosed properties	2,750	3,071
Nonperforming Financial Instruments
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans	33,460	34,696
TDRs - accruing	12,727	13,866
Accruing loans > 90 days past due	0	1,004
Total loans	46,187	49,566
Foreclosed properties	2,750	3,071
Total nonperforming assets	$ 48,937	$ 52,637

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	$ 13,351	$ 12,948
Nonaccrual Loans with an Allowance	20,109	21,748
Total Nonaccrual Loans	33,460	34,696
Commercial, financial, and agricultural
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	3,911	3,947
Nonaccrual Loans with an Allowance	8,661	8,205
Total Nonaccrual Loans	12,572	12,152
Real estate, commercial | Real estate – construction, land development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	928	495
Nonaccrual Loans with an Allowance	126	137
Total Nonaccrual Loans	1,054	632
Real estate, commercial | Real estate – mortgage – commercial and other
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	8,351	7,648
Nonaccrual Loans with an Allowance	6,865	8,583
Total Nonaccrual Loans	15,216	16,231
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	161	858
Nonaccrual Loans with an Allowance	3,559	4,040
Total Nonaccrual Loans	3,720	4,898
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	807	694
Total Nonaccrual Loans	807	694
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	91	89
Total Nonaccrual Loans	$ 91	$ 89

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Accrued Interest Receivable Written Off (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	$ 132	$ 293	$ 699
Commercial, financial, and agricultural
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	8	64	195
Real estate, commercial | Real estate – construction, land development & other land loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	12	0	6
Real estate, commercial | Real estate – mortgage – commercial and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	100	220	453
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	10	5	31
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	2	4	14
Consumer loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	$ 0	$ 0	$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Analysis of Payment Status of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans	$ 6,064,698	$ 6,081,715
Nonaccrual loans	33,460	34,696
Unamortized net deferred loan fees	(928)	(1,704)
Total loans	6,065,626	6,083,419
Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	13,908	11,763
Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	295	3,263
Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	1,004
Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	6,017,963	6,032,693
Commercial, financial, and agricultural
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	12,572	12,152
Total loans	603,454	648,997
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	389	377
Commercial, financial, and agricultural | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	105	93
Commercial, financial, and agricultural | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, financial, and agricultural | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	590,388	636,375
Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	603,454	648,997
Real estate, commercial | Real estate – construction, land development & other land loans
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	1,054	632
Total loans	795,886	828,549
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,492	4,046
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	286
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	793,340	823,585
Real estate, commercial | Real estate – construction, land development & other land loans | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	795,886	828,549
Real estate, commercial | Real estate – mortgage – commercial and other
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	15,216	16,231
Total loans	3,234,949	3,194,737
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,294	164
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	1,496
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	3,217,439	3,176,846
Real estate, commercial | Real estate – mortgage – commercial and other | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,234,949	3,194,737
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	3,720	4,898
Total loans	1,045,167	1,021,966
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	8,739	6,571
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	20	1,488
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	1,032,688	1,009,009
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	1,045,167	1,021,966
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	807	694
Total loans	329,348	331,932
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	891	489
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	36	124
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	718
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	327,614	329,907
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	329,348	331,932
Consumer loans
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	91	89
Total loans	56,822	57,238
Consumer loans | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	103	116
Consumer loans | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	134	62
Consumer loans | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer loans | Accruing Current
Financing Receivable, Past Due [Line Items]
Loans	56,494	56,971
Consumer loans | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total loans	$ 56,822	$ 57,238

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 21,678	$ 20,033
Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 0	$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 21,678	$ 20,033
Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	9,508	7,886
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	928	533
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – construction, land development & other land loans | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Real estate – mortgage – commercial and other | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	11,081	10,743
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	161	871
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, mortgage | Accruing 30-59 Days Past Due | Real estate – mortgage – residential (1-4 family) first mortgages | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 0	$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Activity in Allowance for Loan Losses for Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 78,789	$ 52,388	$ 52,388
Allowance for acquired PCD loans			4,895
Charge-offs	(1,043)	(2,317)	(7,602)
Recoveries	823	1,203	4,922
Provisions/(Reversals)	3,500	0	9,611
Ending balance	82,069	65,849	78,789
Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		14,575	14,575
Commercial, financial, and agricultural
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	16,249	11,316	11,316
Allowance for acquired PCD loans			2,917
Charge-offs	(790)	(1,438)	(3,722)
Recoveries	247	514	1,744
Provisions/(Reversals)	307	147	927
Ending balance	16,013	13,606	16,249
Commercial, financial, and agricultural | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		3,067	3,067
Real estate, commercial | Real estate – construction, land development & other land loans
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	16,519	5,355	5,355
Allowance for acquired PCD loans			165
Charge-offs	0	(66)	(245)
Recoveries	137	294	948
Provisions/(Reversals)	(599)	(1,589)	4,156
Ending balance	16,057	10,134	16,519
Real estate, commercial | Real estate – construction, land development & other land loans | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		6,140	6,140
Real estate, commercial | Real estate – mortgage – commercial and other
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	30,342	23,603	23,603
Allowance for acquired PCD loans			1,489
Charge-offs	(45)	(510)	(2,295)
Recoveries	155	262	533
Provisions/(Reversals)	6,875	3,409	7,269
Ending balance	37,327	26,507	30,342
Real estate, commercial | Real estate – mortgage – commercial and other | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		(257)	(257)
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	8,686	8,048	8,048
Allowance for acquired PCD loans			222
Charge-offs	0	(38)	(273)
Recoveries	4	87	761
Provisions/(Reversals)	(531)	(1,685)	(2,656)
Ending balance	8,159	8,996	8,686
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		2,584	2,584
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,337	2,375	2,375
Allowance for acquired PCD loans			92
Charge-offs	(41)	(131)	(400)
Recoveries	233	11	578
Provisions/(Reversals)	(2,455)	(526)	(888)
Ending balance	2,074	4,309	4,337
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		2,580	2,580
Consumer loans
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,656	1,478	1,478
Allowance for acquired PCD loans			10
Charge-offs	(167)	(134)	(667)
Recoveries	47	35	358
Provisions/(Reversals)	(97)	244	803
Ending balance	2,439	2,297	2,656
Consumer loans | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		674	674
Unallocated
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0	213	213
Allowance for acquired PCD loans			0
Charge-offs	0	0	0
Recoveries	0	0	0
Provisions/(Reversals)	0	0	0
Ending balance	$ 0	0	0
Unallocated | Cumulative Effect, Period Of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ (213)	$ (213)

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Recorded Investment in Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 485,995	$ 2,380,302
Year two	2,301,564	1,329,007
Year three	1,137,969	637,027
Year four	568,755	396,981
Year five	356,537	317,729
Prior	694,898	478,114
Revolving	519,908	544,259
Total	6,065,626	6,083,419
Unamortized net deferred loan fees	(928)	(1,704)
Total loans	6,064,698	6,081,715
Commercial, financial, and agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Total	603,454	648,997
Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	5,115	14,960
Year two	29,545	25,508
Year three	6,464	2,965
Year four	2,314	1,730
Year five	1,407	673
Prior	940	550
Revolving	11,037	10,852
Total	56,822	57,238
Commercial, financial, and agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	36,099	206,779
Year two	179,748	140,588
Year three	106,995	74,385
Year four	69,392	76,470
Year five	72,513	16,745
Prior	30,271	17,597
Revolving	108,436	116,433
Total	603,454	648,997
Real estate – construction, land development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	114,984	575,195
Year two	488,473	134,674
Year three	95,445	74,208
Year four	64,975	12,648
Year five	9,434	9,882
Prior	12,734	8,196
Revolving	9,841	13,746
Total	795,886	828,549
Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	53,416	242,926
Year two	278,294	225,388
Year three	207,002	121,148
Year four	116,193	83,945
Year five	77,422	87,050
Prior	303,418	249,433
Revolving	9,422	12,076
Total	1,045,167	1,021,966
Real estate – mortgage – home equity loans / lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	372	3,380
Year two	2,608	595
Year three	506	525
Year four	374	1,304
Year five	1,254	245
Prior	2,589	2,275
Revolving	321,645	323,608
Total	329,348	331,932
Real estate – mortgage – commercial and other | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	276,009	1,337,062
Year two	1,322,896	802,254
Year three	721,557	363,796
Year four	315,507	220,884
Year five	194,507	203,134
Prior	344,946	200,063
Revolving	59,527	67,544
Total	3,234,949	3,194,737
Pass [Member] | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	5,115	14,960
Year two	29,404	25,431
Year three	6,453	2,965
Year four	2,313	1,722
Year five	1,407	673
Prior	923	525
Revolving	10,998	10,810
Total	56,613	57,086
Pass [Member] | Commercial, financial, and agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	35,980	204,945
Year two	177,169	138,540
Year three	105,179	71,369
Year four	66,635	66,645
Year five	62,972	16,009
Prior	29,478	17,492
Revolving	105,225	112,933
Total	582,638	627,933
Pass [Member] | Real estate – construction, land development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	113,568	573,613
Year two	488,287	133,888
Year three	94,674	69,066
Year four	59,914	12,455
Year five	9,256	9,764
Prior	12,619	8,190
Revolving	9,836	13,737
Total	788,154	820,713
Pass [Member] | Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	53,280	241,619
Year two	277,391	224,617
Year three	206,074	120,097
Year four	114,970	82,531
Year five	76,281	86,074
Prior	290,677	234,950
Revolving	8,318	11,051
Total	1,026,991	1,000,939
Pass [Member] | Real estate – mortgage – home equity loans / lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	306	3,111
Year two	2,258	498
Year three	410	439
Year four	299	1,304
Year five	1,254	245
Prior	2,244	1,649
Revolving	315,092	317,319
Total	321,863	324,565
Pass [Member] | Real estate – mortgage – commercial and other | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	275,364	1,328,156
Year two	1,315,875	796,992
Year three	716,571	355,885
Year four	307,705	211,118
Year five	184,889	197,165
Prior	337,011	197,659
Revolving	57,982	66,104
Total	3,195,397	3,153,079
Special Mention | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0	0
Year two	0	4
Year three	0	0
Year four	0	0
Year five	0	0
Prior	0	0
Revolving	0	0
Total	0	4
Special Mention | Commercial, financial, and agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0	225
Year two	125	1,255
Year three	399	1,313
Year four	621	2,729
Year five	2,633	225
Prior	216	9
Revolving	2,504	2,348
Total	6,498	8,104
Special Mention | Real estate – construction, land development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0	41
Year two	38	737
Year three	726	5,095
Year four	4,117	110
Year five	107	104
Prior	98	2
Revolving	5	9
Total	5,091	6,098
Special Mention | Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0	888
Year two	512	615
Year three	448	516
Year four	328	229
Year five	201	323
Prior	3,331	3,237
Revolving	96	94
Total	4,916	5,902
Special Mention | Real estate – mortgage – home equity loans / lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	48	194
Year two	187	0
Year three	0	15
Year four	0	0
Year five	0	0
Prior	18	19
Revolving	1,112	1,341
Total	1,365	1,569
Special Mention | Real estate – mortgage – commercial and other | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	521	1,759
Year two	2,042	4,849
Year three	4,737	5,801
Year four	4,849	3,741
Year five	3,708	2,072
Prior	3,103	1,801
Revolving	1,340	1,440
Total	20,300	21,463
Classified | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0	0
Year two	141	73
Year three	11	0
Year four	1	8
Year five	0	0
Prior	17	25
Revolving	39	42
Total	209	148
Classified | Commercial, financial, and agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	119	1,609
Year two	2,454	793
Year three	1,417	1,703
Year four	2,136	7,096
Year five	6,908	511
Prior	577	96
Revolving	707	1,152
Total	14,318	12,960
Classified | Real estate – construction, land development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	1,416	1,541
Year two	148	49
Year three	45	47
Year four	944	83
Year five	71	14
Prior	17	4
Revolving	0	0
Total	2,641	1,738
Classified | Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	136	419
Year two	391	156
Year three	480	535
Year four	895	1,185
Year five	940	653
Prior	9,410	11,246
Revolving	1,008	931
Total	13,260	15,125
Classified | Real estate – mortgage – home equity loans / lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	18	75
Year two	163	97
Year three	96	71
Year four	75	0
Year five	0	0
Prior	327	607
Revolving	5,441	4,948
Total	6,120	5,798
Classified | Real estate – mortgage – commercial and other | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	124	7,147
Year two	4,979	413
Year three	249	2,110
Year four	2,953	6,025
Year five	5,910	3,897
Prior	4,832	603
Revolving	205	0
Total	$ 19,252	$ 20,195

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Information of Loans Modified in Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) contract	Mar. 31, 2021 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	4	2
Pre- Modification Restructured Balances	$ 653	$ 271
Post- Modification Restructured Balances	$ 653	$ 268
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | TDRs – Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	1	0
Pre- Modification Restructured Balances	$ 36	$ 0
Post- Modification Restructured Balances	$ 36	$ 0
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | TDRs – Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	1	0
Pre- Modification Restructured Balances	$ 36	$ 0
Post- Modification Restructured Balances	$ 36	$ 0
Real estate, commercial | Real estate – mortgage – commercial and other | TDRs – Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	0	1
Pre- Modification Restructured Balances	$ 0	$ 160
Post- Modification Restructured Balances	$ 0	$ 160
Real estate, commercial | Real estate – mortgage – commercial and other | TDRs – Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	1	0
Pre- Modification Restructured Balances	$ 540	$ 0
Post- Modification Restructured Balances	$ 540	$ 0
Commercial, financial, and agricultural | TDRs – Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | contract	1	1
Pre- Modification Restructured Balances	$ 41	$ 111
Post- Modification Restructured Balances	$ 41	$ 108

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Unfunded Loan Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 78,789	$ 52,388	$ 52,388
Charge-offs	(1,043)	(2,317)	(7,602)
Recoveries	823	1,203	4,922
Reversal of provision for unfunded commitments	3,500	0	9,611
Ending balance	82,069	$ 65,849	78,789
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	13,506
Charge-offs	0
Recoveries	0
Reversal of provision for unfunded commitments	(1,500)
Ending balance	$ 12,006		$ 13,506

XML

Goodwill and Other Intangible Assets (Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortizable intangible assets:
Gross Carrying Amount	$ 44,527	$ 43,782
Accumulated Amortization	27,599	25,955
Unamortizable intangible assets:
Goodwill	364,263	364,263
Customer lists
Amortizable intangible assets:
Gross Carrying Amount	2,700	2,700
Accumulated Amortization	1,501	1,386
Core deposit intangibles
Amortizable intangible assets:
Gross Carrying Amount	29,050	29,050
Accumulated Amortization	18,972	18,076
SBA servicing assets
Amortizable intangible assets:
Gross Carrying Amount	12,677	11,932
Accumulated Amortization	7,086	6,460
Other
Amortizable intangible assets:
Gross Carrying Amount	100	100
Accumulated Amortization	$ 40	$ 33

XML

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Balance of servicing assets	$ 5,600
Servicing assets recorded	700	$ 600
Amortization of SBA servicing assets	626	470
SBA Servicing Asset	426,600		$ 414,200
Amortization of intangible assets	$ 1,017	$ 897

XML

Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
April 1, 2022 to December 31, 2022	$ 2,666
2023	2,545
2024	1,718
2025	1,358
2026	962
Thereafter	2,088
Total	$ 11,337

XML

Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total borrowings, gross	$ 71,017	$ 71,050
Unamortized discount on acquired borrowings	(3,602)	(3,664)
Total borrowings	$ 67,415	$ 67,386
Weighted average interest rate	2.56%	2.24%
FHLB Principal Reducing Credit Due July 24, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 68	$ 79
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due December 22, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 942	$ 952
Fixed rate	1.25%	1.25%
FHLB Principal Reducing Credit Due June 26, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 222	$ 225
Fixed rate	0.25%	0.25%
FHLB Principal Reducing Credit Due July 17, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 42	$ 44
Fixed rate	0.00%	0.00%
FHLB Principal Reducing Credit Due August 18, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 164	$ 166
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due August 22, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 164	$ 166
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due December 20, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 339	$ 342
Fixed rate	0.50%	0.50%
Trust Preferred Securities Due January 23, 2034
Debt Instrument [Line Items]
Total borrowings, gross	$ 20,620	$ 20,620
Weighted average interest rate	3.00%	2.83%
Trust Preferred Securities Due January 23, 2034 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.70%	2.70%
Trust Preferred Securities Due June 15, 2036
Debt Instrument [Line Items]
Total borrowings, gross	$ 25,774	$ 25,774
Weighted average interest rate	2.22%	1.59%
Trust Preferred Securities Due June 15, 2036 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.39%	1.39%
Trust Preferred Securities Due January 7, 2035
Debt Instrument [Line Items]
Total borrowings, gross	$ 10,310	$ 10,310
Weighted average interest rate	2.24%	2.12%
Trust Preferred Securities Due January 7, 2035 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.00%	2.00%
Trust Preferred Securities Due September 20, 2034
Debt Instrument [Line Items]
Total borrowings, gross	$ 12,372	$ 12,372
Weighted average interest rate	3.08%	2.72%
Trust Preferred Securities Due September 20, 2034 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.15%	2.15%

XML

Leases (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) branchOffice	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	19 years 4 months 24 days
Weighted average discount rate	2.88%
Total operating lease expense	$ 900	$ 700
Operating right-of-use lease assets	20,380		$ 20,719
Operating lease liabilities	$ 20,903		$ 21,192
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 | branchOffice	17
Land
Lessee, Lease, Description [Line Items]
Number of branch locations | branchOffice	9

XML

Leases (Schedule of Estimated Lease Payments) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
April 1, 2022 to December 31, 2022	$ 1,747
2023	2,360
2024	2,163
2025	1,706
2026	1,685
Thereafter	19,988
Total undiscounted lease payments	29,649
Less effect of discounting	(8,746)
Present value of estimated lease payments (lease liability)	$ 20,903	$ 21,192

XML

Pension Plans (Narrative) (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) plan	Mar. 31, 2021 USD ($)
Retirement Benefits [Abstract]
Number of defined benefit plans | plan	2
Net periodic pension cost (income)	$ 51,000	$ 191,000
Contributions to plan	0
Expected contributions to plan	$ 0

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Pension Plans (Components of Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0
Interest cost	295	345
Expected return on plan assets	(288)	(325)
Amortization of net (gain)/loss	44	171
Net periodic pension cost	51	191
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	267	306
Expected return on plan assets	(288)	(325)
Amortization of net (gain)/loss	180	210
Net periodic pension cost	159	191
SERP
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	28	39
Expected return on plan assets	0	0
Amortization of net (gain)/loss	(136)	(39)
Net periodic pension cost	$ (108)	$ 0

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Fair Value (Financial instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 2,685,048	$ 2,630,414
Foreclosed properties	2,750	3,071
US Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	149,391	0
Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,168	69,179
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,425,911	2,514,805
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Presold mortgages in process of settlement	5,672	19,257
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | US Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	0
Foreclosed properties		0
Significant Other Observable Inputs (Level 2) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,685,048	2,630,414
Presold mortgages in process of settlement	0	0
Significant Other Observable Inputs (Level 2) | Recurring | US Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	149,391
Significant Other Observable Inputs (Level 2) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,168	69,179
Significant Other Observable Inputs (Level 2) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,425,911	2,514,805
Significant Other Observable Inputs (Level 2) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	45,578	46,430
Significant Other Observable Inputs (Level 2) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	0
Foreclosed properties		0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed properties		364
Significant Unobservable Inputs (Level 3) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Presold mortgages in process of settlement	0	0
Significant Unobservable Inputs (Level 3) | Recurring | US Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0
Significant Unobservable Inputs (Level 3) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	12,590	11,583
Foreclosed properties		364
Estimated Fair Value | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,685,048	2,630,414
Presold mortgages in process of settlement	5,672	19,257
Estimated Fair Value | Recurring | US Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	149,391
Estimated Fair Value | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,168	69,179
Estimated Fair Value | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,425,911	2,514,805
Estimated Fair Value | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	45,578	46,430
Estimated Fair Value | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	$ 12,590	11,583
Foreclosed properties		$ 364

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Fair Value (Schedule of Significant Unobservable Inputs) (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed properties	$ 2,750	$ 3,071
Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed properties		364
Significant Unobservable Inputs (Level 3) | Financing Receivable, Collateral Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans	6,909	7,326
Significant Unobservable Inputs (Level 3) | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans	$ 5,681	$ 4,257
Significant Unobservable Inputs (Level 3) | Appraised value | Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, measurement input (as a percent)		0.10
Significant Unobservable Inputs (Level 3) | Appraised value | Discount rate | Financing Receivable, Collateral Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)	0.10	0.10
Significant Unobservable Inputs (Level 3) | PV of expected cash flows | Discount rate | Minimum | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)	0.04	0.04
Significant Unobservable Inputs (Level 3) | PV of expected cash flows | Discount rate | Maximum | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)	0.11	0.11
Significant Unobservable Inputs (Level 3) | PV of expected cash flows | Discount rate | Weighted Average | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)	0.0650	0.0622

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Fair Value (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	$ 124,785	$ 128,228
Securities held to maturity	546,090	513,825
Total loans, net of allowance	5,982,629	6,002,926
Accrued interest receivable	24,728	25,896
Bank-owned life insurance	164,273	165,786
SBA Servicing Asset	426,600	414,200
Accrued interest payable	576	607
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	124,785	128,228
Due from banks, interest-bearing	440,974	332,934
Accrued interest receivable	24,728	25,896
Bank-owned life insurance	164,273	165,786
Carrying Amount | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held to maturity	546,090	513,825
SBA and other loans held for sale	3,630	61,003
Deposits	9,385,147	9,124,629
Borrowings	67,415	67,386
Accrued interest payable	576	607
Carrying Amount | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total loans, net of allowance	5,982,629	6,002,926
SBA Servicing Asset	5,591	5,472
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	124,785	128,228
Due from banks, interest-bearing	440,974	332,934
Accrued interest receivable	24,728	25,896
Bank-owned life insurance	164,273	165,786
Estimated Fair Value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held to maturity	492,307	511,699
SBA and other loans held for sale	4,010	62,044
Deposits	9,382,240	9,124,701
Borrowings	59,593	61,295
Accrued interest payable	576	607
Estimated Fair Value | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total loans, net of allowance	5,957,829	5,990,235
SBA Servicing Asset	$ 5,667	$ 5,546

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Stock-Based Compensation (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) director shares	Mar. 31, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 547	$ 397
Stock-based compensation tax benefit	126	$ 91
Non-Employee Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director equity grants granted, value	$ 32
Number of directors | director	13
Long-Term Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 4,200
Unrecognized compensation expense, period for recognition	2 years 3 months 18 days
Long-Term Restricted Stock Awards | Next Twelve Months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 2,100
Long-Term Restricted Stock Awards | Remaining Quarters of 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 1,600
First Bancorp 2014 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remaining available for grant | shares	431,852

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Stock-Based Compensation (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock Awards	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Number of Units
Nonvested, beginning (in shares) | shares	206,331
Granted during the period (in shares) | shares	20,494
Vested during the period (in shares) | shares	(6,997)
Forfeited or expired during the period (in shares) | shares	(7,115)
Nonvested, ending (in shares) | shares	212,713
Weighted-Average Grant-Date Fair Value
Nonvested, beginning (in dollars per share) | $ / shares	$ 35.25
Granted during the period (in dollars per share) | $ / shares	45.88
Vested during the period (in dollars per share) | $ / shares	36.05
Forfeited or expired during the period (in dollars per share) | $ / shares	31.50
Nonvested, ending (in dollars per share) | $ / shares	$ 36.33

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Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jan. 31, 2021
Equity [Abstract]
Number of shares repurchased (in shares)	0	106,744
Average price (in dollars per share)		$ 37.81
Value of repurchased shares		$ 4.0
Authorized repurchase amount			$ 20.0

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic EPS:
Net income	$ 33,969	$ 28,194
Less: income allocated to participating securities	(198)	(178)
Basic EPS per common share	$ 33,771	$ 28,016
Basic (in shares)	35,433,739	28,357,809
Basic (in dollars per share)	$ 0.95	$ 0.99
Diluted EPS:
Net income	$ 33,969	$ 28,194
Effect of Dilutive Securities	0	0
Diluted EPS per common share	$ 33,969	$ 28,194
Basic (in shares)	35,433,739	28,357,809
Effect of Dilutive Securities (in shares)	207,239	180,044
Diluted (in shares)	35,640,978	28,537,853
Diluted (in dollars per share)	$ 0.95	$ 0.99

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Accumulated Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	$ (164,955)	$ (24,970)
Unrealized Loss on Securities Available for Sale
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	(213,862)	(32,067)
Deferred tax asset	49,145	7,369
Total accumulated other comprehensive income (loss)	(164,717)	(24,698)
Postretirement Plans Asset (Liability)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	(309)	(353)
Deferred tax asset	71	81
Total accumulated other comprehensive income (loss)	(238)	(272)
Total
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	$ (164,955)	$ (24,970)

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Accumulated Other Comprehensive Income (Loss) (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,230,575	$ 893,421
Other comprehensive loss before reclassifications	(140,019)	(18,666)
Amounts reclassified from accumulated other comprehensive income	34	131
Net current-period other comprehensive (loss) income	(139,985)	(18,535)
Ending balance	1,117,490	876,853
Unrealized Loss on Securities Available for Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(24,698)	15,749
Other comprehensive loss before reclassifications	(140,019)	(18,666)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current-period other comprehensive (loss) income	(140,019)	(18,666)
Ending balance	(164,717)	(2,917)
Postretirement Plans Asset (Liability)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(272)	(1,399)
Other comprehensive loss before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	34	131
Net current-period other comprehensive (loss) income	34	131
Ending balance	(238)	(1,268)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(24,970)	14,350
Ending balance	$ (164,955)	$ (4,185)

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Revenue from Contracts with Customers (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
NONINTEREST INCOME
Service charges on deposit accounts	$ 3,541	$ 2,733
Other service charges, commissions, and fees:
Interchange income	4,711	3,524
Other service charges and fees	2,263	1,998
Commissions from sales of insurance and financial products:
Insurance income	0	1,326
Wealth management income	945	864
SBA consulting fees	780	2,764
Noninterest income (in-scope of ASC 606)	12,240	13,209
Noninterest income (out-of-scope of ASC 606)	7,011	7,460
Total noninterest income	$ 19,251	$ 20,669

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]