(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |||||||||||||||||||
, | ||||||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||||||||
(Registrant's telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered: | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Page | |||||
($ in thousands) | June 30, 2023 (unaudited) | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Cash and due from banks, noninterest-bearing | $ | ||||||||||
Due from banks, interest-bearing | |||||||||||
Total cash and cash equivalents | |||||||||||
Securities available for sale | |||||||||||
Securities held to maturity (fair values of $ | |||||||||||
Presold mortgages in process of settlement at fair value | |||||||||||
Loans | |||||||||||
Allowance for credit losses on loans | ( | ( | |||||||||
Net loans | |||||||||||
Premises and equipment | |||||||||||
Operating right-of-use lease assets | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Bank-owned life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | ||||||||||
LIABILITIES | |||||||||||
Deposits: Noninterest-bearing deposits | $ | ||||||||||
Interest-bearing deposits | |||||||||||
Total deposits | |||||||||||
Borrowings | |||||||||||
Accrued interest payable | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Preferred stock, no par value per share. Authorized: | |||||||||||
Issued & outstanding: | |||||||||||
Common stock, no par value per share. Authorized: | |||||||||||
Issued & outstanding: | |||||||||||
Retained earnings | |||||||||||
Stock in rabbi trust assumed in acquisition | ( | ( | |||||||||
Rabbi trust obligation | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
($ in thousands, except share data - unaudited) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||
Interest and fees on loans | $ | ||||||||||||||||||||||
Interest on investment securities: | |||||||||||||||||||||||
Taxable interest income | |||||||||||||||||||||||
Tax-exempt interest income | |||||||||||||||||||||||
Other, principally overnight investments | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||
Interest on deposits | |||||||||||||||||||||||
Interest on borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Reversal of provision for unfunded commitments | ( | ( | ( | ||||||||||||||||||||
Total provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Other service charges and fees | |||||||||||||||||||||||
Fees from presold mortgage loans | |||||||||||||||||||||||
Commissions from sales of financial products | |||||||||||||||||||||||
SBA consulting fees | |||||||||||||||||||||||
SBA loan sale gains | |||||||||||||||||||||||
Bank-owned life insurance income | |||||||||||||||||||||||
Other gains, net | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||
Salaries expense | |||||||||||||||||||||||
Employee benefits expense | |||||||||||||||||||||||
Total personnel expense | |||||||||||||||||||||||
Occupancy expense | |||||||||||||||||||||||
Equipment related expenses | |||||||||||||||||||||||
Merger and acquisition expenses | |||||||||||||||||||||||
Intangibles amortization expense | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Total noninterest expenses | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | ||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | ||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends declared per common share | $ | ||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
($ in thousands - unaudited) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized (losses) gains on securities available for sale: | |||||||||||||||||||||||
Unrealized (losses) gains arising during the period | ( | ( | ( | ||||||||||||||||||||
Tax benefit (expense) | ( | ||||||||||||||||||||||
Postretirement Plans: | |||||||||||||||||||||||
Amortization of unrecognized net actuarial loss | |||||||||||||||||||||||
Tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | ( | ( |
($ in thousands, except share data - unaudited) | Common Stock | Retained Earnings | Stock in Rabbi Trust Assumed in Acquisition | Rabbi Trust Obligation | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balances, April 1, 2022 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2022 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balances, April 1, 2023 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2023 | $ | ( | ( |
($ in thousands, except share data - unaudited) | Common Stock | Retained Earnings | Stock in Rabbi Trust Assumed in Acquisition | Rabbi Trust Obligation | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balances, January 1, 2022 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2022 | $ | ( | ( | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balances, January 1, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Change in Rabbi Trust Obligation | ( | ||||||||||||||||||||||||||||||||||||||||
Equity issued pursuant to acquisition | |||||||||||||||||||||||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||||||||||||||||||||
Stock withheld for payment of taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2023 | $ | ( | ( |
Six Months Ended June 30, | |||||||||||
($ in thousands-unaudited) | 2023 | 2022 | |||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | ||||||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses and unfunded commitments, net | |||||||||||
Net security premium amortization | |||||||||||
(Decrease) increase in net deferred tax asset | ( | ||||||||||
Loan discount accretion | ( | ( | |||||||||
Other purchase accounting amortization and accretion, net | ( | ||||||||||
Foreclosed property net gains | ( | ( | |||||||||
Other gains, net | ( | ( | |||||||||
Bank-owned life insurance income | ( | ( | |||||||||
Decrease in net deferred loan fees | ( | ( | |||||||||
Depreciation of premises and equipment | |||||||||||
Amortization of operating lease right-of-use assets | |||||||||||
Repayments of lease obligations | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization and impairment of SBA servicing assets | |||||||||||
Fees/gains from sale of presold mortgages and SBA loans | ( | ( | |||||||||
Origination of presold mortgage loans in process of settlement | ( | ( | |||||||||
Proceeds from sales of presold mortgage loans in process of settlement | |||||||||||
Origination of SBA loans for sale | ( | ( | |||||||||
Proceeds from sales of SBA and other loans | |||||||||||
Increase (decrease) in accrued interest receivable | ( | ||||||||||
Decrease (increase) in other assets | ( | ||||||||||
Increase in accrued interest payable | |||||||||||
Increase (decrease) in other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases of securities available for sale | ( | ||||||||||
Purchases of securities held to maturity | ( | ||||||||||
Proceeds from maturities/issuer calls of securities available for sale | |||||||||||
Proceeds from maturities/issuer calls of securities held to maturity | |||||||||||
Proceeds from sales of securities available for sale | |||||||||||
Purchases of Federal Reserve and FHLB stock, net | ( | ( | |||||||||
Proceeds from bank owned life insurance death benefits | |||||||||||
Net increase in loans | ( | ( | |||||||||
Proceeds from sales of foreclosed properties | |||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Proceeds from sales of premises and equipment | |||||||||||
Net cash received in acquisition activities | |||||||||||
Net cash used by investing activities | ( | ( | |||||||||
Cash Flows From Financing Activities | |||||||||||
Net (decrease) increase in deposits | ( | ||||||||||
Net increase in short-term borrowings | |||||||||||
Payments on long-term borrowings | ( | ( | |||||||||
Cash dividends paid – common stock | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Payment of taxes related to stock withheld | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ |
Six Months Ended June 30, | |||||||||||
($ in thousands-unaudited) | 2023 | 2022 | |||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid during the period for interest | $ | ||||||||||
Cash paid during the period for income taxes | |||||||||||
Non-cash: Unrealized gain (loss) on securities available for sale, net of taxes | ( | ||||||||||
Non-cash: Foreclosed loans transferred to other real estate | |||||||||||
Non-cash: Accrued dividends at end of period | |||||||||||
Acquisition of GrandSouth Bancorporation | See Note 2 | — |
($ in thousands) | Fair Value Estimate | |||||||
Assets acquired: | ||||||||
Cash and cash equivalents | $ | |||||||
Securities available for sale | ||||||||
Loans, gross | ||||||||
Allowance for loan losses | ( | |||||||
Premises and equipment | ||||||||
Core deposit intangible | ||||||||
Operating right-of-use lease assets | ||||||||
Other assets | ||||||||
Total | ||||||||
Liabilities assumed: | ||||||||
Deposits | ||||||||
Borrowings | ||||||||
Other liabilities | ||||||||
Total | ||||||||
Net identifiable assets acquired | ||||||||
Less: Total consideration | ||||||||
Goodwill recorded related to acquisition of GrandSouth | $ |
($ in thousands) | January 1, 2023 | |||||||
PCD Loans: | ||||||||
Par value | $ | |||||||
Allowance for credit losses | ( | |||||||
Non-credit discount | ( | |||||||
Purchase price | ||||||||
Non-PCD Loans: | ||||||||
Fair Value | ||||||||
Gross contractual amounts receivable | ||||||||
Estimate of contractual cash flows not expected to be collected |
($ in thousands) | For the three months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||
Revenue | Net Income | Revenue | Net Income | |||||||||||||||||||||||
Actual GrandSouth results included in statement of income since acquisition date | $ | $ | $ | $ | ||||||||||||||||||||||
($ in thousands) | For the three months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
Revenue | Net Income | Revenue | Net Income | |||||||||||||||||||||||
Supplemental consolidated pro forma for the Company as if GrandSouth had been acquired on January 1, 2022 |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized | Amortized Cost | Fair Value | Unrealized | |||||||||||||||||||||||||||||||||||||||||||||
Gains | (Losses) | Gains | (Losses) | |||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Total available for sale | $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
State and local governments | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity | $ | ( | ( |
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 | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | |||||||||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
State and local governments | ||||||||||||||||||||||||||||||||||||||
Total unrealized loss position | $ |
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 Treasury securities | $ | |||||||||||||||||||||||||||||||||||||
Government-sponsored enterprise securities | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
State and local governments | ||||||||||||||||||||||||||||||||||||||
Total unrealized loss position | $ |
Securities Available for Sale | Securities Held to Maturity | |||||||||||||||||||||||||
($ in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due within one year | $ | |||||||||||||||||||||||||
Due after one year but within five years | ||||||||||||||||||||||||||
Due after five years but within ten years | ||||||||||||||||||||||||||
Due after ten years | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Total securities | $ |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | |||||||||||||||||||||||
Commercial and industrial | $ | % | $ | % | ||||||||||||||||||||||
Construction, development & other land loans | % | % | ||||||||||||||||||||||||
Commercial real estate - owner occupied | % | % | ||||||||||||||||||||||||
Commercial real estate - non owner occupied | % | % | ||||||||||||||||||||||||
Multi-family real estate | % | % | ||||||||||||||||||||||||
Residential 1-4 family real estate | % | % | ||||||||||||||||||||||||
Home equity loans/lines of credit | % | % | ||||||||||||||||||||||||
Consumer loans | % | % | ||||||||||||||||||||||||
Subtotal | % | % | ||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ( | ||||||||||||||||||||||||
Total loans | $ | $ |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Guaranteed portions of SBA loans included in table above | $ | |||||||||||||
Unguaranteed portions of SBA loans included in table above | ||||||||||||||
Total SBA loans included in the table above | $ | |||||||||||||
Sold portions of SBA loans with servicing retained - not included in tables above | $ |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Nonaccrual loans | $ | |||||||||||||
Modifications to borrowers in financial distress | ||||||||||||||
TDRs - accruing | ||||||||||||||
Total nonperforming loans | ||||||||||||||
Foreclosed real estate | ||||||||||||||
Total nonperforming assets | $ |
($ in thousands) | Nonaccrual Loans with No Allowance | Nonaccrual Loans with an Allowance | Total Nonaccrual Loans | |||||||||||||||||
Commercial and industrial | $ | |||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Total | $ |
($ in thousands) | Nonaccrual Loans with No Allowance | Nonaccrual Loans with an Allowance | Total Nonaccrual Loans | |||||||||||||||||
Commercial and industrial | $ | |||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Total | $ |
($ in thousands) | Six Months Ended June 30, 2023 | For the Year Ended December 31, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||
Commercial and industrial | $ | |||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Total | $ |
($ in thousands) | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing 90 Days or More Past Due | Nonaccrual Loans | Accruing Current | Total Loans Receivable | |||||||||||||||||||||||||||||
Commercial and industrial | $ | ||||||||||||||||||||||||||||||||||
Construction, development & other land loans | |||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||
Multi-family real estate | |||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||
Total loans |
($ in thousands) | Accruing 30-59 Days Past Due | Accruing 60-89 Days Past Due | Accruing 90 Days or More Past Due | Nonaccrual Loans | Accruing Current | Total Loans Receivable | |||||||||||||||||||||||||||||
Commercial and industrial | $ | ||||||||||||||||||||||||||||||||||
Construction, development & other land loans | |||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||
Multi-family real estate | |||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||
Total loans | $ |
($ in thousands) | Residential Property | Business Assets | Land | Commercial Property | Total Collateral-Dependent Loans | ||||||||||||||||||||||||
Commercial and industrial | $ | ||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||
Total | $ |
($ in thousands) | Residential Property | Business Assets | Land | Commercial Property | Total Collateral-Dependent Loans | ||||||||||||||||||||||||
Commercial and industrial | $ | ||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||
Residential 1-4 family real estate | |||||||||||||||||||||||||||||
Total | $ |
($ in thousands) | Beginning balance | "Day 1" ACL for acquired PCD loans | Charge-offs | Recoveries | Provisions / (Reversals) | Ending balance | ||||||||||||||||||||||||||||||||
As of and for the three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | ( | ||||||||||||||||||||||||||||||||||||
Construction, development & other land loans | ( | |||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||||||||||||||||||||
Consumer loans | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | ( | ||||||||||||||||||||||||||||||||||||
As of and for the six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | ( | ||||||||||||||||||||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ( | |||||||||||||||||||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ( | |||||||||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||||||||
Total | $ | ( |
($ in thousands) | Beginning balance | Charge-offs | Recoveries | Provisions / (Reversals) | Ending balance | |||||||||||||||||||||||||||
As of and for the year ended December 31, 2022 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | ( | ||||||||||||||||||||||||||||||
Construction, development & other land loans | ( | |||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ( | |||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ( | |||||||||||||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ( | ( | ||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||
Total | $ | ( |
($ in thousands) | Beginning balance | Charge-offs | Recoveries | Provisions / (Reversals) | Ending balance | |||||||||||||||||||||||||||
As of and for the three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | ( | ( | |||||||||||||||||||||||||||||
Construction, development & other land loans | ( | |||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ( | ( | ||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ( | |||||||||||||||||||||||||||||||
Multi-family real estate | ( | |||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ( | |||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||
Total | $ | ( | ||||||||||||||||||||||||||||||
As of and for the six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | ( | ||||||||||||||||||||||||||||||
Construction, development & other land loans | ( | |||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ( | |||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ( | |||||||||||||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ( | |||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ( | ( | ||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||
Total | $ | ( |
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 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 with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. |
Term Loans by Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | |||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total construction, development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Multi-family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total multi-family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs, YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans, net of deferred loan fees | |||||||||||||||||||||||||||||||||||||||||||||||
Total gross charge-offs, year to date | $ |
Term Loans by Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving | Total | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total construction, development & other land loans | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - non owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||
Multi-family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total multi-family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential 1-4 family real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total home equity loans/lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Unamortized net deferred loan fees | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans, net of deferred loan fees |
($ in thousands) | Payment Delay | Term Extension | Combination - Interest Rate Reduction and Term Extension | Total | Percent of Total Class of Loans | |||||||||||||||||||||||||||
As of and for the three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | % | ||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | % | |||||||||||||||||||||||||||||||
Residential 1-4 family real estate | % | |||||||||||||||||||||||||||||||
Home equity loans/lines of credit | % | |||||||||||||||||||||||||||||||
Total | $ | % | ||||||||||||||||||||||||||||||
As of and for the six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | % | ||||||||||||||||||||||||||||||
Construction, development & other land loans | % | |||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | % | |||||||||||||||||||||||||||||||
Commercial real estate - non owner occupied | NM | |||||||||||||||||||||||||||||||
Residential 1-4 family real estate | % | |||||||||||||||||||||||||||||||
Home equity loans/lines of credit | % | |||||||||||||||||||||||||||||||
Consumer loans | % | |||||||||||||||||||||||||||||||
Total | $ | % |
Financial Effect of Modification to Borrowers Experiencing Financial Difficulty | ||||||||||||||||||||
Weighted Average Interest Rate Reduction | Weighted Average Payment Delay (in months) | Weighted Average Term Extension (in months) | ||||||||||||||||||
For the three months ended June 30, 2023 | ||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||
For the six months ended June 30, 2023 | ||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||
Consumer loans |
Payment Status (Amortized Cost Basis) | ||||||||||||||||||||||||||
($ in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | ||||||||||||||||||||||
Commercial and industrial | $ | |||||||||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||
Commercial real estate - non owner occupied | ||||||||||||||||||||||||||
Multi-family real estate | ||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||
$ |
For the three months ended June 30, 2022 | For the six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||
($ in thousands) | Number of Contracts | Pre-Modification Restructured Balances | Post-Modification Restructured Balances | Number of Contracts | Pre-Modification Restructured Balances | Post-Modification Restructured Balances | ||||||||||||||||||||||||||||||||
TDRs - Accruing | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | ||||||||||||||||||||||||||||||||||||
Construction, development & other land loans | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||||||||
Home equity loans/lines of credit | ||||||||||||||||||||||||||||||||||||||
TDRs - Nonaccrual | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family real estate | ||||||||||||||||||||||||||||||||||||||
Total TDRs arising during period | $ | $ |
($ in thousands) | June 30, 2023 | December 31, 2022 | June 30, 2022 | |||||||||||||||||
Beginning balance | $ | |||||||||||||||||||
"Day 2" provision for credit losses on unfunded commitments acquired from GrandSouth | ||||||||||||||||||||
Charge-offs | ||||||||||||||||||||
Recoveries | ||||||||||||||||||||
Reversal of provision for unfunded commitments | ( | ( | ( | |||||||||||||||||
Ending balance | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
($ in thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||||||||
Customer lists | $ | |||||||||||||||||||||||||
Core deposit intangibles | ||||||||||||||||||||||||||
Other intangibles | ||||||||||||||||||||||||||
Intangibles before servicing assets | ||||||||||||||||||||||||||
SBA servicing assets | ||||||||||||||||||||||||||
Total amortizable intangible assets | $ | |||||||||||||||||||||||||
Unamortizable intangible assets: | ||||||||||||||||||||||||||
Goodwill | $ |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Beginning balance, net | $ | |||||||||||||||||||||||||
Add: New servicing assets | ||||||||||||||||||||||||||
Less: Amortization and impairment expense | ||||||||||||||||||||||||||
Ending balance, net | $ | |||||||||||||||||||||||||
SBA guaranteed servicing income | $ |
($ in thousands) | Total Goodwill | |||||||
Balance at December 31, 2021 | $ | |||||||
Net activity during 2022 | ||||||||
Balance at December 31, 2022 | ||||||||
Additions from acquisition of GrandSouth | ||||||||
Balance at June 30, 2023 | $ |
($ in thousands) | Estimated Amortization Expense | |||||||
July 1, 2023 to December 31, 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total | $ |
Description | Due date | Call Feature | June 30, 2023 | Interest Rate | ||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/24/2023 | None | $ | |||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/22/2023 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 6/26/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/17/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/18/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/22/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/20/2028 | None | ||||||||||||||||||||||||
FHLB Daily Rate Credit | 7/13/2023 | None | ||||||||||||||||||||||||
FHLB Fixed Rate Credit | 9/13/2023 | None | ||||||||||||||||||||||||
FHLB Fixed Rate Hybrid | 9/29/2023 | None | ||||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 9/20/2034 | Quarterly by Company beginning 9/20/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/7/2035 | Quarterly by Company beginning 1/7/2010 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 6/15/2036 | Quarterly by Company beginning 6/15/2011 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 6/23/2036 | Quarterly by the Company beginning 6/23/2011 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Subordinated Debentures | 11/30/2028 | Semi-annually by Company beginning 11/30/2023 | ||||||||||||||||||||||||
Subordinated Debentures | 11/15/2030 | Semi-annually by Company beginning 11/15/2025 | ||||||||||||||||||||||||
Total borrowings / weighted average rate as of June 30, 2023 | ||||||||||||||||||||||||||
Unamortized discount on acquired borrowings | ( | |||||||||||||||||||||||||
Total borrowings | $ |
Description | Due date | Call Feature | December 31, 2022 | Interest Rate | ||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/24/2023 | None | $ | |||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/22/2023 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 6/26/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 7/17/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/18/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 8/22/2028 | None | ||||||||||||||||||||||||
FHLB Principal Reducing Credit | 12/20/2028 | None | ||||||||||||||||||||||||
FHLB Daily Rate Credit | 8/23/2023 | None | ||||||||||||||||||||||||
FHLB Fixed Rate Credit | 1/9/2023 | None | ||||||||||||||||||||||||
FHLB Fixed Rate Credit | 2/1/2023 | None | ||||||||||||||||||||||||
FHLB Fixed Rate Credit | 2/9/2023 | None | ||||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/23/2034 | Quarterly by Company beginning 1/23/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 6/15/2036 | Quarterly by Company beginning 6/15/2011 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 9/20/2034 | Quarterly by Company beginning 9/20/2009 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Trust Preferred Securities | 1/7/2035 | Quarterly by Company beginning 1/7/2010 | adjustable rate 3 month LIBOR + | |||||||||||||||||||||||
Total borrowings / weighted average rate as of December 31, 2022 | ||||||||||||||||||||||||||
Unamortized discount on acquired borrowings | ( | |||||||||||||||||||||||||
Total borrowings | $ |
($ in thousands) | ||||||||
July 1, 2023 to December 31, 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total undiscounted lease payments | ||||||||
Less effect of discounting | ( | |||||||
Present value of estimated lease payments (lease liability) | $ |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Pension Plan | SERP | Total Both Plans | Pension Plan | SERP | Total Both Plans | |||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net loss (gain) | ( | ( | |||||||||||||||||||||||||||||||||
Net periodic pension cost | $ | ( | ( | ||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Pension Plan | SERP | Total Both Plans | Pension Plan | SERP | Total Both Plans | |||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net (gain)/loss | ( | ( | |||||||||||||||||||||||||||||||||
Net periodic pension cost | $ | ( | ( |
($ in thousands) Description of Financial Instruments | Fair Value at June 30, 2023 | 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: | ||||||||||||||||||||||||||
U.S. Treasury | $ | |||||||||||||||||||||||||
Government-sponsored enterprise securities | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Total available for sale securities | $ | |||||||||||||||||||||||||
Presold mortgages in process of settlement | $ | |||||||||||||||||||||||||
Nonrecurring | ||||||||||||||||||||||||||
Individually evaluated loans | $ | |||||||||||||||||||||||||
($ in thousands) Description of Financial Instruments | Fair Value at December 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 securities | $ | |||||||||||||||||||||||||
Government-sponsored enterprise securities | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Total available for sale securities | $ | |||||||||||||||||||||||||
Presold mortgages in process of settlement | $ | |||||||||||||||||||||||||
Nonrecurring | ||||||||||||||||||||||||||
Individually evaluated loans | $ | |||||||||||||||||||||||||
Foreclosed real estate |
($ in thousands) | Fair Value at June 30, 2023 | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Individually evaluated loans - collateral-dependent | $ | Appraised value | Discounts applied for estimated costs to sell | |||||||||||||||||||||||
($ in thousands) | Fair Value at December 31, 2022 | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
Individually evaluated loans - collateral-dependent | $ | Appraised value | Discounts applied for estimated costs to sell | |||||||||||||||||||||||
Individually evaluated loans - cash-flow dependent | PV of expected cash flows | Discount rates used in the calculation of PV of expected cash flows | ||||||||||||||||||||||||
Foreclosed real estate | Appraised value | Discounts applied for estimated costs to sell |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
($ in thousands) | Level in Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||
Cash and due from banks, noninterest-bearing | Level 1 | $ | |||||||||||||||||||||||||||
Due from banks, interest-bearing | Level 1 | ||||||||||||||||||||||||||||
Securities held to maturity | Level 2 | ||||||||||||||||||||||||||||
Total loans, net of allowance | Level 3 | ||||||||||||||||||||||||||||
Accrued interest receivable | Level 1 | ||||||||||||||||||||||||||||
Bank-owned life insurance | Level 1 | ||||||||||||||||||||||||||||
SBA Servicing Asset | Level 3 | ||||||||||||||||||||||||||||
Deposits | Level 2 | ||||||||||||||||||||||||||||
Borrowings | Level 2 | ||||||||||||||||||||||||||||
Accrued interest payable | Level 1 |
Long-Term Restricted Stock Awards | ||||||||||||||
Number of Units | Weighted-Average Grant-Date Fair Value | |||||||||||||
Nonvested at January 1, 2023 | $ | |||||||||||||
Granted during the period | ||||||||||||||
Vested during the period | ( | |||||||||||||
Forfeited or expired during the period | ( | |||||||||||||
Nonvested at June 30, 2023 | $ |
Options Outstanding | ||||||||||||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value ($ in thousands) | |||||||||||||||||||||||
Balance at January 1, 2023 | $ | |||||||||||||||||||||||||
Replacement options issued in conjunction with acquisition of GrandSouth | ||||||||||||||||||||||||||
Exercised during the period | ( | |||||||||||||||||||||||||
Forfeited or expired during the period | ||||||||||||||||||||||||||
Outstanding at June 30, 2023 | $ | |||||||||||||||||||||||||
Exercisable at June 30, 2023 | $ | $ |
Shares | Range | Weighted Average Price | Weighted Average Remaining Life in Years | |||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
For the Six Months Ended | ||||||||
June 30, 2023 | ||||||||
Fair value per option, weighted average | $ | |||||||
Expected life (years) | ||||||||
Expected stock price volatility, weighted average | % | |||||||
Expected dividend yield | % | |||||||
Risk-free interest rate, weighted average | % | |||||||
Expected forfeiture rate | % |
For the Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
($ in thousands except per share amounts) | Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Less: income allocated to restricted stock | ( | ( | ||||||||||||||||||||||||||||||||||||
Basic EPS per common share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||||||||||||||
Diluted EPS per common share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
($ in thousands except per share amounts) | Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Less: income allocated to restricted stock | ( | ( | ||||||||||||||||||||||||||||||||||||
Basic EPS per common share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | ||||||||||||||||||||||||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||||||||||||||||
Diluted EPS per common share | $ | $ | $ | $ |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Unrealized loss on securities available for sale | $ | ( | ( | |||||||||||
Deferred tax asset | ||||||||||||||
Net unrealized loss on securities available for sale | ( | ( | ||||||||||||
Postretirement plans liability | ||||||||||||||
Deferred tax asset | ( | ( | ||||||||||||
Net postretirement plans liability | ||||||||||||||
Total accumulated other comprehensive loss | $ | ( | ( |
For the Three Months Ended June 30, 2023 | ||||||||||||||||||||
($ in thousands) | Unrealized Loss on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | |||||||||||||||||
Beginning balance | $ | ( | ( | |||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | ||||||||||||||||||
Ending balance | $ | ( | ( | |||||||||||||||||
For the Three Months Ended June 30, 2022 | ||||||||||||||||||||
($ in thousands) | Unrealized Loss on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | |||||||||||||||||
Beginning balance | $ | ( | ( | ( | ||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | ||||||||||||||||||
Ending balance | $ | ( | ( | ( |
For the Six Months Ended June 30, 2023 | ||||||||||||||||||||
($ in thousands) | Unrealized Loss on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | |||||||||||||||||
Beginning balance | $ | ( | ( | |||||||||||||||||
Other comprehensive gain before reclassifications | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||
Net current-period other comprehensive income | ||||||||||||||||||||
Ending balance | $ | ( | ( | |||||||||||||||||
For the Six Months Ended June 30, 2022 | ||||||||||||||||||||
($ in thousands) | Unrealized Loss on Securities Available for Sale | Postretirement Plans Asset (Liability) | Total | |||||||||||||||||
Beginning balance | $ | ( | ( | ( | ||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ( | ||||||||||||||||||
Ending balance | $ | ( | ( | ( |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||
($ in thousands) | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
Noninterest Income: In-scope of ASC 606: | ||||||||||||||||||||||||||
Service charges on deposit accounts | $ | |||||||||||||||||||||||||
Other service charges and fees: | ||||||||||||||||||||||||||
Bankcard interchange income, net | ||||||||||||||||||||||||||
Other service charges and fees | ||||||||||||||||||||||||||
Commissions from sales of financial products | ||||||||||||||||||||||||||
SBA consulting fees | ||||||||||||||||||||||||||
Noninterest income (in-scope of ASC 606) | ||||||||||||||||||||||||||
Noninterest income (out-of-scope of ASC 606) | ||||||||||||||||||||||||||
Total noninterest income | $ |
For the Three Months Ended June 30, 2023 | ||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||
Net interest income, as reported | $ | 86,985 | 78,270 | |||||||||||
Tax-equivalent adjustment | 699 | 669 | ||||||||||||
Net interest income, tax-equivalent | $ | 87,684 | 78,939 | |||||||||||
Net interest margin, as reported | 3.05 | % | 3.16 | % | ||||||||||
Net interest margin, tax-equivalent | 3.08 | % | 3.18 | % |
Average Balances and Net Interest Income Analysis | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loans (1) (2) | $ | 7,850,522 | 5.26 | % | $ | 102,963 | $ | 6,149,174 | 4.24 | % | $ | 65,077 | |||||||||||||||||||||||
Taxable securities | 2,925,060 | 1.79 | % | 13,063 | 3,137,383 | 1.71 | % | 13,385 | |||||||||||||||||||||||||||
Non-taxable securities | 296,747 | 1.51 | % | 1,120 | 299,982 | 1.48 | % | 1,104 | |||||||||||||||||||||||||||
Short-term investments, primarily interest-bearing cash | 350,338 | 4.60 | % | 4,015 | 363,119 | 0.97 | % | 881 | |||||||||||||||||||||||||||
Total interest-earning assets | 11,422,667 | 4.25 | % | 121,161 | 9,949,658 | 3.24 | % | 80,447 | |||||||||||||||||||||||||||
Cash and due from banks | 93,421 | 125,545 | |||||||||||||||||||||||||||||||||
Premises and equipment | 152,534 | 135,553 | |||||||||||||||||||||||||||||||||
Other assets | 389,714 | 305,992 | |||||||||||||||||||||||||||||||||
Total assets | $ | 12,058,336 | $ | 10,516,748 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 1,456,540 | 0.37 | % | $ | 1,333 | $ | 1,541,768 | 0.05 | % | $ | 210 | |||||||||||||||||||||||
Money market deposits | 3,250,399 | 2.23 | % | 18,053 | 2,567,138 | 0.11 | % | 731 | |||||||||||||||||||||||||||
Savings deposits | 676,427 | 0.16 | % | 269 | 745,496 | 0.06 | % | 106 | |||||||||||||||||||||||||||
Other time deposits | 791,980 | 2.64 | % | 5,216 | 522,239 | 0.19 | % | 242 | |||||||||||||||||||||||||||
Time deposits >$250,000 | 343,054 | 2.87 | % | 2,457 | 296,210 | 0.40 | % | 296 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 6,518,400 | 1.68 | % | 27,328 | 5,672,851 | 0.11 | % | 1,585 | |||||||||||||||||||||||||||
Borrowings | 483,439 | 5.68 | % | 6,848 | 67,418 | 3.52 | % | 592 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,001,839 | 1.96 | % | 34,176 | 5,740,269 | 0.15 | % | 2,177 | |||||||||||||||||||||||||||
Noninterest-bearing checking | 3,662,641 | 3,664,764 | |||||||||||||||||||||||||||||||||
Other liabilities | 79,236 | 20,638 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,314,620 | 1,091,077 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,058,336 | $ | 10,516,748 | |||||||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income | 3.05 | % | $ | 86,985 | 3.16 | % | $ | 78,270 | |||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | 3.08 | % | $ | 87,684 | 3.18 | % | $ | 78,939 | |||||||||||||||||||||||||||
Interest rate spread | 2.29 | % | 3.09 | % | |||||||||||||||||||||||||||||||
Average prime rate | 8.16 | % | 3.94 | % |
For the Six Months Ended June 30, 2023 | ||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||
Net interest income, as reported | $ | 179,471 | 155,148 | |||||||||||
Tax-equivalent adjustment | 1,399 | 1,366 | ||||||||||||
Net interest income, tax-equivalent | $ | 180,870 | 156,514 | |||||||||||
Net interest margin, as reported | 3.17 | % | 3.17 | % | ||||||||||
Net interest margin, tax-equivalent | 3.19 | % | 3.19 | % |
Average Balances and Net Interest Income Analysis | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
($ in thousands) | Average Volume | Average Rate | Interest Earned or Paid | Average Volume | Average Rate | Interest Earned or Paid | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loans (1) (2) | $ | 7,789,800 | 5.24 | % | $ | 202,343 | $ | 6,100,246 | 4.27 | % | $ | 129,279 | |||||||||||||||||||||||
Taxable securities | 2,973,460 | 1.80 | % | 26,479 | 3,066,772 | 1.75 | % | 26,595 | |||||||||||||||||||||||||||
Non-taxable securities | 297,789 | 1.52 | % | 2,250 | 294,257 | 1.47 | % | 2,152 | |||||||||||||||||||||||||||
Short-term investments, primarily interest-bearing cash | 364,651 | 4.02 | % | 7,263 | 420,671 | 0.73 | % | 1,530 | |||||||||||||||||||||||||||
Total interest-earning assets | 11,425,700 | 4.21 | % | $ | 238,335 | 9,881,946 | 3.26 | % | 159,556 | ||||||||||||||||||||||||||
Cash and due from banks | 94,239 | 120,691 | |||||||||||||||||||||||||||||||||
Premises and equipment | 151,877 | 135,768 | |||||||||||||||||||||||||||||||||
Other assets | 378,546 | 401,660 | |||||||||||||||||||||||||||||||||
Total assets | $ | 12,050,362 | $ | 10,540,065 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest bearing checking | $ | 1,491,401 | 0.30 | % | $ | 2,199 | $ | 1,558,950 | 0.06 | % | $ | 434 | |||||||||||||||||||||||
Money market deposits | 3,113,201 | 1.87 | % | 28,867 | 2,586,527 | 0.12 | % | 1,584 | |||||||||||||||||||||||||||
Savings deposits | 702,527 | 0.11 | % | 397 | 733,769 | 0.06 | % | 214 | |||||||||||||||||||||||||||
Time deposits >$100,000 | 838,287 | 2.59 | % | 10,770 | 534,300 | 0.18 | % | 487 | |||||||||||||||||||||||||||
Other time deposits | 328,079 | 2.47 | % | 4,013 | 315,027 | 0.41 | % | 637 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 6,473,495 | 1.44 | % | 46,246 | 5,728,573 | 0.12 | % | 3,356 | |||||||||||||||||||||||||||
Borrowings | 461,260 | 5.52 | % | 12,618 | 67,400 | 3.15 | % | 1,052 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,934,755 | 1.71 | % | 58,864 | 5,795,973 | 0.15 | % | 4,408 | |||||||||||||||||||||||||||
Noninterest bearing checking | 3,725,222 | 3,550,741 | |||||||||||||||||||||||||||||||||
Other liabilities | 96,228 | 43,098 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,294,157 | 1,150,253 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,050,362 | $ | 10,540,065 | |||||||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income | 3.17 | % | $ | 179,471 | 3.17 | % | $ | 155,148 | |||||||||||||||||||||||||||
Net yield on interest-earning assets and net interest income – tax-equivalent (3) | 3.19 | % | $ | 180,870 | 3.19 | % | $ | 156,514 | |||||||||||||||||||||||||||
Interest rate spread | 2.50 | % | 3.11 | % | |||||||||||||||||||||||||||||||
Average prime rate | 7.92 | % | 3.62 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Accretion of loan discount on acquired loans | $ | 3,159 | 1,545 | 6,277 | 3,216 | |||||||||||||||||||||
Accretion of loan discount on retained SBA loans | 426 | 730 | 874 | 1,397 | ||||||||||||||||||||||
Total interest income impact | 3,585 | 2,275 | 7,151 | 4,613 | ||||||||||||||||||||||
(Discount accretion) premium amortization of acquired deposits | (878) | 168 | (1,897) | 402 | ||||||||||||||||||||||
Discount accretion of acquired borrowings | (212) | (53) | (420) | (126) | ||||||||||||||||||||||
Total net interest expense impact | (1,090) | 115 | (2,317) | 276 | ||||||||||||||||||||||
Total impact on net interest income | $ | 2,495 | 2,390 | 4,834 | 4,889 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Service charges on deposit accounts | $ | 4,114 | 3,700 | 8,008 | 7,241 | |||||||||||||||||||||
Other service charges and fees - bankcard interchange income, net | 2,368 | 4,812 | 4,950 | 9,523 | ||||||||||||||||||||||
Other service charges and fees - other | 3,282 | 3,070 | 6,620 | 5,364 | ||||||||||||||||||||||
Fees from presold mortgage loans | 557 | 454 | 963 | 1,575 | ||||||||||||||||||||||
Commissions from sales of financial products | 1,413 | 1,151 | 2,719 | 2,096 | ||||||||||||||||||||||
SBA consulting fees | 409 | 704 | 930 | 1,484 | ||||||||||||||||||||||
SBA loan sale gains | 696 | 841 | 951 | 4,102 | ||||||||||||||||||||||
Bank-owned life insurance ("BOLI") income | 1,066 | 942 | 2,112 | 1,918 | ||||||||||||||||||||||
Core noninterest income | 13,905 | 15,674 | 27,253 | 33,303 | ||||||||||||||||||||||
Other gains, net | 330 | 1,590 | 518 | 3,212 | ||||||||||||||||||||||
Total noninterest income | $ | 14,235 | $ | 17,264 | $ | 27,771 | $ | 36,515 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Salaries | $ | 28,676 | 23,799 | 57,997 | 47,253 | |||||||||||||||||||||
Employee benefits | 6,165 | 6,310 | 12,558 | 11,888 | ||||||||||||||||||||||
Total personnel expense | 34,841 | 30,109 | 70,555 | 59,141 | ||||||||||||||||||||||
Occupancy expense | 3,547 | 3,122 | 7,235 | 6,506 | ||||||||||||||||||||||
Equipment related expenses | 1,425 | 1,514 | 2,804 | 2,818 | ||||||||||||||||||||||
Credit card rewards and other bankcard expenses | 1,324 | 970 | 2,443 | 2,213 | ||||||||||||||||||||||
Telephone and data lines | 982 | 855 | 1,978 | 1,790 | ||||||||||||||||||||||
Software costs | 2,133 | 1,288 | 4,303 | 2,862 | ||||||||||||||||||||||
Data processing expense | 1,860 | 1,920 | 4,272 | 4,022 | ||||||||||||||||||||||
Professional fees | 1,416 | 1,307 | 2,865 | 2,178 | ||||||||||||||||||||||
Advertising and marketing expense | 1,090 | 884 | 2,209 | 1,795 | ||||||||||||||||||||||
Non-credit losses | 1,550 | 488 | 2,415 | 1,090 | ||||||||||||||||||||||
Deposit related expenses | 720 | 257 | 1,434 | 667 | ||||||||||||||||||||||
Other operating expenses | 7,322 | 5,286 | 15,580 | 9,962 | ||||||||||||||||||||||
Core noninterest expense | 58,210 | 48,000 | 118,093 | 95,044 | ||||||||||||||||||||||
Merger and acquisition expenses | 1,334 | 737 | 13,516 | 4,221 | ||||||||||||||||||||||
Amortization of intangible assets | 2,049 | 953 | 4,194 | 1,970 | ||||||||||||||||||||||
Foreclosed property losses (gains), net | — | (292) | (35) | (372) | ||||||||||||||||||||||
Total noninterest expense | $ | 61,593 | $ | 49,398 | $ | 135,768 | $ | 100,863 |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
($ in thousands) | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||
Noninterest-bearing checking accounts | $ | 3,639,930 | 36 | % | 3,566,003 | 39 | % | |||||||||||||||||||
Interest-bearing checking accounts | 1,454,489 | 14 | % | 1,514,166 | 16 | % | ||||||||||||||||||||
Money market accounts | 3,411,072 | 34 | % | 2,416,146 | 26 | % | ||||||||||||||||||||
Savings accounts | 658,473 | 6 | % | 728,641 | 8 | % | ||||||||||||||||||||
Other time deposits | 638,751 | 6 | % | 464,343 | 5 | % | ||||||||||||||||||||
Time deposits >$250,000 | 353,473 | 4 | % | 276,319 | 3 | % | ||||||||||||||||||||
Total market deposits | 10,156,188 | 100 | % | 8,965,618 | 97 | % | ||||||||||||||||||||
Brokered deposits | 12,381 | — | % | 261,911 | 3 | % | ||||||||||||||||||||
Total deposits | $ | 10,168,569 | 100 | % | 9,227,529 | 100 | % |
($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Nonperforming assets | ||||||||||||||
Nonaccrual loans | $ | 29,876 | 28,514 | |||||||||||
Modifications to borrowers in financial distress | 4,862 | — | ||||||||||||
TDRs – accruing | — | 9,121 | ||||||||||||
Total nonperforming loans | 34,738 | 37,635 | ||||||||||||
Foreclosed real estate | 1,077 | 658 | ||||||||||||
Total nonperforming assets | $ | 35,815 | 38,293 | |||||||||||
Asset Quality Ratios | ||||||||||||||
Nonaccrual loans to total loans | 0.38 | % | 0.43 | % | ||||||||||
Nonperforming loans to total loans | 0.44 | % | 0.56 | % | ||||||||||
Nonperforming assets to total loans and foreclosed properties | 0.45 | % | 0.57 | % | ||||||||||
Nonperforming assets to total assets | 0.30 | % | 0.36 | % | ||||||||||
Allowance for credit losses to nonaccrual loans | 365.61 | % | 319.03 | % | ||||||||||
Allowance for credit losses to nonperforming loans | 314.44 | % | 241.71 | % |
($ in thousands) | Six Months Ended June 30, 2023 | Twelve Months Ended December 31, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||
Loans outstanding at end of period | $ | 7,897,629 | 6,665,145 | 6,243,170 | ||||||||||||||||
Average amount of loans outstanding | 7,789,800 | 6,293,280 | 6,100,246 | |||||||||||||||||
Allowance for credit losses, at period end | 109,230 | 90,967 | 82,181 | |||||||||||||||||
Total charge-offs | (4,372) | (4,465) | (2,803) | |||||||||||||||||
Total recoveries | 1,874 | 4,043 | 2,695 | |||||||||||||||||
Net charge-offs | $ | (2,498) | (422) | (108) | ||||||||||||||||
Ratios: | ||||||||||||||||||||
Net charge-offs as a percent of average loans (annualized) | 0.06 | % | 0.01 | % | — | % | ||||||||||||||
Allowance for credit losses as a percent of loans at end of period | 1.38 | % | 1.36 | % | 1.32 | % | ||||||||||||||
Recoveries of loans previously charged-off as a percent of loans charged-off | 42.86 | % | 90.55 | % | 96.15 | % |
June 30, 2023 | December 31, 2022 | |||||||||||||
Risk-based capital ratios: | ||||||||||||||
Common equity Tier 1 to Tier 1 risk weighted assets | 12.75 | % | 13.02 | % | ||||||||||
Minimum required Common Equity Tier 1 capital | 7.00 | % | 7.00 | % | ||||||||||
Tier I capital to Tier 1 risk weighted assets | 13.54 | % | 13.83 | % | ||||||||||
Minimum required Tier 1 capital | 8.50 | % | 8.50 | % | ||||||||||
Total risk-based capital to Tier II risk weighted assets | 15.09 | % | 15.09 | % | ||||||||||
Minimum required total risk-based capital | 10.50 | % | 10.50 | % | ||||||||||
Leverage capital ratio: | ||||||||||||||
Tier 1 capital to quarterly average total assets | 10.47 | % | 10.51 | % | ||||||||||
Minimum required Tier 1 leverage capital | 4.00 | % | 4.00 | % |
2.a | |||||
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. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed June 14, 2022, and are incorporated herein by reference. | ||||
3.b | |||||
4.a | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. |
FIRST BANCORP | |||||
August 8, 2023 | BY:/s/ Richard H. Moore | ||||
Richard H. Moore Chief Executive Officer (Principal Executive Officer), and Director | |||||
August 8, 2023 | BY:/s/ Elizabeth B. Bostian | ||||
Elizabeth B. Bostian Executive Vice President and Chief Financial Officer | |||||
August 8, 2023 | BY:/s/ Blaise B. Buczkowski | ||||
Blaise B, Buczkowski Executive Vice President and Chief Accounting Officer |
August 8, 2023 | /s/ Richard H. Moore | ||||
Richard H. Moore | |||||
Chief Executive Officer |
August 8, 2023 | /s/ Elizabeth B. Bostian | ||||
Elizabeth B. Bostian | |||||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held to maturity fair values | $ 441,881 | $ 432,528 |
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) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 41,082,678 | 35,704,154 |
Common stock, shares outstanding (in shares) | 41,082,678 | 35,704,154 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 29,403 | $ 36,585 | $ 44,564 | $ 70,554 |
Unrealized (losses) gains on securities available for sale: | ||||
Unrealized (losses) gains arising during the period | (31,415) | (109,623) | 3,918 | (291,418) |
Tax benefit (expense) | 7,273 | 25,192 | (152) | 66,968 |
Postretirement Plans: | ||||
Amortization of unrecognized net actuarial loss | 44 | 44 | 88 | 88 |
Tax benefit | (10) | (10) | (21) | (20) |
Other comprehensive (loss) income | (24,108) | (84,397) | 3,833 | (224,382) |
Comprehensive income (loss) | $ 5,295 | $ (47,812) | $ 48,397 | $ (153,828) |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
Organization and Basis of Presentation |
6 Months Ended |
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Jun. 30, 2023 | |
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 June 30, 2023, the consolidated results of operations for the three and six months ended June 30, 2023 and 2022, and the consolidated cash flows for the six months ended June 30, 2023 and 2022. 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, 2022. 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 2022 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. Certain reclassifications have been made to the June 30, 2022 and December 31, 2022 consolidated financial statements to be comparable to June 30, 2023. These reclassifications had no effect on net income. The Company has evaluated all subsequent events through the date the financial statements were issued. Accounting Standards Adopted in 2023 ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments contained in this Accounting Standards Update ("ASU") eliminate the accounting guidance for troubled debt restructurings ("TDR") 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. The Company adopted ASU 2022-02 effective January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. The impact of the adoption resulted in an immaterial change to the allowance for credit losses ("ACL"), thus no adjustment to retained earnings was recorded. Disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty as presented in Note 4. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, the current year vintage disclosure included in Note 4 has been updated to reflect gross charge-offs by year of origination for the six months ended June 30, 2023. ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and, therefore, is not considered in measuring fair value. The Company adopted ASU 2022-03 January 1, 2023 with no material impact on its financial statements. ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The objective of the guidance in Topic 848 was to provide relief during the temporary transition period and the FASB included a sunset provision based on expectations of when the London Interbank Offered Rate ("LIBOR") would cease being published. The United Kingdom Financial Conduct Authority has announced that the intended LIBOR cessation date has been extended from December 31, 2021 to June 30, 2023. As such, ASU 2022-06 defers the sunset date previously set to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848; moreover, it applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was adopted upon issuance. The Company will continue to elect various optional expedients for contract modifications affected by rate reference reform through the effective date of this guidance with no material effect on its financial statements. Accounting Standards Pending Adoption ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 is not expected to have a significant impact on the Company's consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions On January 1, 2023, the Company completed its acquisition of GrandSouth Bancorporation ("GrandSouth"), in an all-stock transaction pursuant to the Agreement and Plan of Merger and Reorganization (the "Merger Agreement"), dated June 21, 2022, between the Company and GrandSouth. At the closing of the transaction, GrandSouth merged into the Company. Following the merger of the Company and GrandSouth, GrandSouth Bank, a wholly-owned subsidiary of GrandSouth, merged into the Bank with the Bank being the surviving entity. The results of GrandSouth are included beginning on the January 1, 2023 acquisition date. Pursuant to the Merger Agreement, each share of common and preferred stock of GrandSouth issued and outstanding immediately prior to the effective time of the acquisition was converted into 0.91 shares of the Company's common stock. As a result, the Company issued 5,032,834 shares of the Company common stock effective January 1, 2023. In addition, GrandSouth common stock options outstanding at the merger effective time were converted to options to acquire 0.91 shares of the Company's common stock resulting in 542,345 options with an average exercise price of approximately $20.14. The total consideration transferred at the close of the transaction was $229.5 million which was determined based on the number of shares issued and the closing market price of the Company's stock immediately prior to the merger effective time of $42.84. In addition to the stock issued, the fair value of the converted stock options calculated in accordance with FASB Accounting Standards Codification ("ASC") 805-30-55 was included in the total consideration of the transaction. As a result of the merger, eight branches in South Carolina were added to the Company's branch network. The acquisition accomplished the Company's strategic initiative to expand its presence in South Carolina, specifically in the the high-growth markets of the state including Greenville, Charleston and Columbia. Significant synergies are anticipated to be gained from the acquisition, with asset growth and revenue enhancement opportunities from the new markets and expanded customer base. Accordingly, the Company recognized goodwill in the transaction related primarily to the reasons noted, as well as the positive earnings of GrandSouth. This transaction was accounted for using the acquisition method of accounting for business combinations, and accordingly, the assets acquired, intangible assets identified, and liabilities assumed of GrandSouth were recorded based on estimates of fair values as of January 1, 2023. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. Estimated fair values were based on management’s best estimates, using the information available at the date of acquisition, including the use of third-party valuation specialists. Management has finalized the valuations of all acquired assets and liabilities assumed in the GrandSouth acquisition. The following table summarizes the estimated fair value of acquired assets, identified intangible assets, and liabilities assumed as of January 1, 2023. Following the table is a discussion of valuation approaches utilized in estimating the fair values in accordance with ASC 805-10, "Business Combinations." The $114.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes.
The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed included in the table above. Cash and cash equivalents: This consists primarily of cash and due from banks, and interest-bearing deposits with banks. The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets. Securities available for sale: Fair value of securities was measured based on quoted market prices, where available. If a quoted market price was not available, fair value was estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. Substantially all of the securities acquired from GrandSouth were liquidated at their recorded fair value upon close of the transaction or shortly thereafter. There was no gain or loss recorded on the sale of acquired securities. Loans: Fair value of loans acquired was based on a discounted cash flow methodology that considered factors including loan type and related collateral, classification status, remaining term of the loan, fixed or variable interest rate, amortization status, and current discount rates. Expected cash flows were derived using inputs consistent with management's assessment of credit risk for allowance measurement, including estimated future credit losses and estimated prepayments. A total fair value mark of $29.5 million was recorded. Purchased loans with financial deterioration ("PCD loans") were determined based primarily on internal grades, delinquency status, and other evidence of credit deterioration. The Company calculated the "Day 1" allowance of $5.6 million on PCD loans in accordance with its current expected credit loss model ("CECL") and reclassified that amount from the fair value mark to establish the initial ACL on PCD loans. The following table presents additional information related to the acquired loan portfolio at the acquisition date:
Premises: Land and buildings held for use were valued at appraised values, which reflected considerations of recent disposition values for similar property types with adjustments for characteristics of individual properties. Intangible assets: Core deposit intangible ("CDI") asset represents the value of the relationships with deposit customers. The fair value for the core deposit intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of deposit base, net maintenance cost attributable to customer deposits and an estimate of the cost associated with alternative funding sources. The discount rates used for CDI assets were based on market rates. The CDI is being amortized over 10 years utilizing the sum of the months digits accelerated method, which results in a weighted-average amortization period of approximately 41 months. Lease Assets and Lease Liabilities: Lease assets and lease liabilities were measured using a methodology that involved estimating the future lease payments over the remaining lease term with discounting using a discount rate. The lease term was determined for individual leases based on management's assessment of the probability of exercising existing renewal options. Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis applying interest rates currently offered to the contractual interest rates on such time deposits. Borrowings: The fair values of long-term debt instruments were estimated based on quoted market prices for instrument if available, or for similar instruments if not available. Supplemental Pro Forma Financial Information The following table presents certain pro forma information as if GrandSouth had been acquired on January 1, 2022. These results combine the historical results of GrandSouth with the Company’s results and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2022. Merger-related costs related to this acquisition of $1.3 million and $13.5 million for the three and six months ended June 30, 2023 were recorded by the Company and were excluded from the pro forma information below. In addition, no adjustments have been made to such pro forma information to eliminate the provision for loan losses recorded by GrandSouth in the amount of $0.1 million and $0.4 million for the three and six months ended June 30, 2022. Pro forma information for the three and six months ended June 30, 2023 was adjusted to eliminate the following: 1) the non-PCD provision for loan losses recorded on the acquisition date of $12.2 million and 2) the initial recording of a provision for credit losses associated with GrandSouth’s unfunded commitments of $1.9 million. If the GrandSouth acquisition had occurred at the beginning of 2022, the acquisition date credit loss reserve amounts would have been included in the fair value measurements of GrandSouth and also included in the goodwill calculation. The following table also discloses the impact of the acquisition of GrandSouth from the acquisition date of January 1, 2023 through June 30, 2023. These amounts are included in the Company’s consolidated financial statements as of and for the three and six months ended June 30, 2023. Merger-related costs have been excluded from these amounts and the provisions for credit loss amounts associated with non-PCD loans and unfunded commitments that were discussed above have also been excluded.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:
All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSE"), except for private mortgage-backed securities with a fair value of $0.8 million and $0.8 million as of June 30, 2023 and December 31, 2022, respectively. The following table presents information regarding all securities with unrealized losses at June 30, 2023:
The following table presents information regarding all securities with unrealized losses at December 31, 2022:
As of June 30, 2023, the Company's securities portfolio held 657 securities of which 645 securities were in an unrealized loss position. As of December 31, 2022, the Company's securities portfolio held 666 securities of which 644 securities were in an unrealized loss position. In the above tables, all of the securities that were in an unrealized loss position at June 30, 2023 and December 31, 2022 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 state and local government investments are comprised almost entirely of highly-rated municipal bonds issued by state and local governments throughout the nation. The Company has no significant concentrations of bond holdings from one state or local government entity. Nearly all of our mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or the Small Business Administration ("SBA"), each of which is a government agency or GSE and guarantees the repayment of the securities. 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 June 30, 2023 and December 31, 2022, the Company determined that expected credit losses associated with held to maturity debt securities were insignificant. The book values and approximate fair values of investment securities at June 30, 2023, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
At June 30, 2023 and December 31, 2022, investment securities with carrying values of $1.6 billion and $758.0 million, respectively, were pledged as collateral for public deposits or at the Federal Reserve Bank of Richmond ("Federal Reserve") as security on lines of credit. At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity. There were no sales of investment securities during the three or six months ended June 30, 2023. Included in “Other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $54.9 million and $39.6 million at June 30, 2023 and December 31, 2022, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $22.1 million and $14.7 million at June 30, 2023 and December 31, 2022, 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 Federal Reserve stock had a cost and fair value of $32.7 million and $24.9 million at June 30, 2023 and December 31, 2022, respectively, and is a requirement for Federal Reserve member bank qualification. Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end. The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at June 30, 2023 was approximately 1.59, which means the Company would have received approximately 19,649 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 their conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.
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Loans, Allowance for Credit Losses, and Asset Quality Information |
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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:
Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.
At June 30, 2023 and December 31, 2022, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $3.8 million and $4.3 milion, respectively. At June 30, 2023 and December 31, 2022, loans in the amount of $6.1 billion and $5.3 billion, respectively, were pledged as collateral for certain borrowings. At June 30, 2023 and December 31, 2022, total loans included loans to executive officers and directors of the Company, and their associates, totaling approximately $5.8 million and $6.0 million, respectively. There were two new loans and advances on existing loans totaling approximately $0.1 million for the six months ended June 30, 2023 and repayments amounted to $0.3 million for that period. Available credit on related party loans totaled $1.2 million at June 30, 2023 and December 31, 2022. Management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features. As of June 30, 2023 and December 31, 2022, unamortized discounts on all acquired loans totaled $29.2 million and $11.6 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 ("NPA") are defined as nonaccrual loans, modifications to borrowers in financial distress, loans past due 90 or more days and still accruing interest, foreclosed real estate, and prior to the adoption of ASU 2022-02 on January 1, 2023, TDRs. The following table summarizes the NPAs for each period presented.
At June 30, 2023 and December 31, 2022, the Company had $2.7 million and $0.8 million, respectively, in residential mortgage loans in the process of foreclosure. At both June 30, 2023 and December 31, 2022, there was one loan, respectively, with an immaterial commitment to lend additional funds to borrowers whose loans were nonperforming. The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2023:
The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2022:
There was no interest income recognized during the periods presented 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:
The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2023:
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2022:
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 $500,000 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 $500,000 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 ACL. The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2023:
The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2022:
Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of collateral. The ACL 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 that are usually incurred when disposing of real estate collateral. 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% of appraised value 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 tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the six months ended June 30, 2023 is attributed to the acquisition of GrandSouth. In addition to the "Day 1" allowance recorded for PCD loans of $5.6 million, the Company recorded a "Day 2" initial provision of $12.2 million related to the non-PCD loans in the GrandSouth portfolio. The balance of the change was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to some deterioration in the commercial real estate index.
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:
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 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.
Loan Modifications to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, we adopted ASU 2022-02 which eliminated the accounting guidance for TDRs and requires disclosures for certain loan modifications when a borrower is experiencing financial difficulty. Occasionally, the Company modifies loans to borrowers in financial distress as a part of our loss mitigation activities. Various types of modification may be offered including principal forgiveness, term extension, payment delays, or interest rate reductions. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. For loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The followings tables present the amortized cost basis at June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted. Percentages labeled as "NM" are not measurable to the class of financing receivable, as they are less than 0.1% of the total class.
For the three and six months ended June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions. The following tables describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:
The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:
None of the modifications made for borrowers experiencing financial difficulty during the three and six months ended June 30, 2023 are considered to have had a payment default. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. TDR Disclosures Prior to the Adoption of ASU 2022-02 The restructuring of a loan was considered a TDR if both (i) the borrower was experiencing financial difficulties and (ii) the creditor had granted a concession. Concessions may have included 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 June 30, 2022 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness. The Company’s TDRs are classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that were nonaccrual were reported within the nonaccrual loan totals presented previously. The following table presents information related to loans modified in a TDR during the three and six months ended June 30, 2022.
The Company considered a TDR loan to have defaulted when it became 90 or more days delinquent under the modified terms, had been transferred to nonaccrual status, or had 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 and six months ended June 30, 2022. 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 88% 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 ACL on loans, the Company maintains an ACL 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 ACL on loans. The ACL for unfunded loan commitments of $13.0 million and $13.3 million at June 30, 2023 and December 31, 2022, respectively, were 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 six months ended June 30, 2023 and 2022 and for the twelve months ended December 31, 2022:
Allowance for Credit Losses - Securities Held to Maturity The ACL for securities held to maturity was insignificant at June 30, 2023 and December 31, 2022.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.
Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate. Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $2.0 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $4.2 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively. 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." The following table presents the changes in the SBA servicing assets and SBA servicing income for the three and six months ended June 30, 2023 and 2022:
At June 30, 2023 and December 31, 2022, the Company serviced SBA loans totaling $371.9 million and $392.4 million, respectively, for others. There were no other loans serviced in any period presented. Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. No triggering events were identified during 2023 to date or in 2022, and therefore, the Company did not perform interim impairment evaluations in either of those periods. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2022 evaluation, indicated that there was no goodwill impairment. The following table presents the changes in carrying amounts of goodwill:
In connection with the GrandSouth acquisition on January 1, 2023, the Company recorded $28.8 million in core deposit intangibles. The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing 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.
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The following tables present information regarding the Company’s outstanding borrowings at June 30, 2023 and December 31, 2022 (dollars in thousands):
As discussed in Note 1, with the June 30, 2023 cessation of LIBOR, the index for the interest rates on the Company's trust preferred securities will automatically convert to the 3-month CME Term SOFR plus a spread intended to approximate the current interest rate. No material impact on the Company's financial statements is anticipated upon the next interest rate reset based on the SOFR index.
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Leases |
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Lessee Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company enters into leases in the normal course of business. As of June 30, 2023, the Company leased 17 branch offices for which the land and buildings are leased and 10 branch offices for which the land is leased but the buildings are 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 July 2023 through May 2076, some of which include options for multiple - and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.3 years as of June 30, 2023. 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 applicable lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 3.07% as of June 30, 2023. Total operating lease expenses were $0.8 million and $0.7 million for the three months ended June 30, 2023 and 2022, respectively, and $1.5 million and $1.6 million for the six months ended June 30, 2023 and 2022, respectively. The right-of-use assets and lease liabilities were $18.4 million and $19.1 million as of June 30, 2023, respectively, and were $18.7 million and $19.4 million as of December 31, 2022, respectively. Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows.
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Pension Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans The Company 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, no additional accruals of benefits under these plans for service subsequent to 2012 have been made. The Company recorded periodic pension cost totaling $50,000 and $51,000 for the three months ended June 30, 2023 and 2022, respectively, and $101,000 and $102,000 for the six months ended June 30, 2023 and 2022, respectively. The following table contains the components of the pension cost:
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 six months of 2023 and does not expect to contribute to the Pension Plan in the remainder of 2023. Effective March 31, 2023, the Company determined that the Pension Plan will be terminated during 2023 and a termination cost estimate of $2.4 million is included in the accompanying consolidated income statement. 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 |
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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 June 30, 2023:
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2022:
The following is a description of the valuation methodologies used for financial 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 in 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, GSEs, and corporate bonds. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Individually evaluated loans — Fair values for individually evaluated 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 ACL. For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows:
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:
The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2023 and December 31, 2022 were as follows:
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no highly liquid market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
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Stock-Based Compensation |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company recorded total stock-based compensation expense of $1.1 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $2.2 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively. In addition, the Company recognized $261,000 and $149,000 of income tax benefits related to stock-based compensation expense for the three months ended June 30, 2023 and 2022, respectively, and $520,000 and $275,000 for the six months ended June 30, 2023 and 2022, respectively. At June 30, 2023, the sole equity-based compensation plan of the Company was the First Bancorp 2014 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 8, 2014. As of June 30, 2023, the Equity Plan had 205,498 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 an annual or cliff vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with 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 $37,500 for the current year, to each non-employee director (currently 14 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 six months of 2023 related to the Company’s outstanding restricted stock awards:
Total unrecognized compensation expense as of June 30, 2023 amounted to $7.3 million with a weighted-average remaining term of 2.2 years. For the nonvested awards that are outstanding at June 30, 2023, the Company expects to record $4.0 million in compensation expense in the next 12 months, $2.4 million of which is expected to be recorded in the remaining quarters of 2023. As discussed in Note 2, in conjunction with the GrandSouth acquisition, GrandSouth common stock options outstanding at January 1, 2023 became fully vested under the change in control provisions in the GrandSouth option plans and were converted into replacement options to acquire 0.91 shares of the Company's common stock. Stock option activity and related information is presented below as of and for the periods indicated:
Stock options outstanding are summarized as follows as of June 30, 2023:
In accordance with ASC 805-30, the fair value of the replacement options issued in conjunction with the GrandSouth acquisition as of January 1, 2023 was measured using the Black-Scholes option pricing model and the weighted average fair value of replacement options was $24.85. The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted:
The expected life is based on historical exercises and forfeitures experience of the grantees. The volatility is based on historical price volatility. The risk-free interest rate is based on a U.S. Treasury instrument with a life that is similar to the expected life of the option grant. At June 30, 2023, the Company had no unrecognized compensation expense related to stock options. All unexercised options expire 10 years after the applicable original grant dates under the GrandSouth stock option plan.
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Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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"):
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Accumulated Other Comprehensive Income (Loss) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) ("AOCI") for the Company are as follows:
The following tables disclose the changes in AOCI for the three and six months ended June 30, 2023 and 2022 (all amounts are net of tax):
Amounts reclassified from AOCI for unrealized gain (loss) on securities available for sale represent realized securities gains or losses, net of tax effects. There were no security sales in any period presented. Amounts reclassified from AOCI for postretirement plans asset (liability) represent amortization of amounts included in AOCI, 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 |
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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 and six months ended June 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.
A description of the Company’s revenue streams accounted for under ASC 606 is detailed below. Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Overdraft fees are recognized at the point in time that the overdraft occurs. Maintenance and activity fees include account maintenance fees and transaction-based fees. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Service charges on deposits are withdrawn from the customer’s account balance. Other service charges 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 sales of financial products: The Company earns commissions from the sale of wealth management products which primarily consist of commissions received on financial product sales, such as annuities. The Company’s performance obligation is generally satisfied upon the issuance of the financial product. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company also earns some fees from asset management, which is billed quarterly for services rendered in the most recent period, for which the performance obligation has been satisfied. SBA consulting fees: The Company earns fees for its consulting services related to the origination of SBA loans. Fees are based on a percentage of the dollar amount of the originated loans and are recorded when the performance obligation has been satisfied. 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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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 29,403 | $ 36,585 | $ 44,564 | $ 70,554 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 June 30, 2023, the consolidated results of operations for the three and six months ended June 30, 2023 and 2022, and the consolidated cash flows for the six months ended June 30, 2023 and 2022. 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, 2022. 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 2022 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. |
Accounting Standards Adopted in 2023 and Accounting Standards Pending Adoption | Accounting Standards Adopted in 2023 ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments contained in this Accounting Standards Update ("ASU") eliminate the accounting guidance for troubled debt restructurings ("TDR") 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. The Company adopted ASU 2022-02 effective January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. The impact of the adoption resulted in an immaterial change to the allowance for credit losses ("ACL"), thus no adjustment to retained earnings was recorded. Disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty as presented in Note 4. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, the current year vintage disclosure included in Note 4 has been updated to reflect gross charge-offs by year of origination for the six months ended June 30, 2023. ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and, therefore, is not considered in measuring fair value. The Company adopted ASU 2022-03 January 1, 2023 with no material impact on its financial statements. ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The objective of the guidance in Topic 848 was to provide relief during the temporary transition period and the FASB included a sunset provision based on expectations of when the London Interbank Offered Rate ("LIBOR") would cease being published. The United Kingdom Financial Conduct Authority has announced that the intended LIBOR cessation date has been extended from December 31, 2021 to June 30, 2023. As such, ASU 2022-06 defers the sunset date previously set to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848; moreover, it applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was adopted upon issuance. The Company will continue to elect various optional expedients for contract modifications affected by rate reference reform through the effective date of this guidance with no material effect on its financial statements. Accounting Standards Pending Adoption ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 is not expected to have a significant impact on the Company's consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
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Acquisitions (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of acquired assets, identified intangible assets, and liabilities assumed as of January 1, 2023. Following the table is a discussion of valuation approaches utilized in estimating the fair values in accordance with ASC 805-10, "Business Combinations." The $114.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes.
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Acquired Loan Portfolio at Acquisition Date | The following table presents additional information related to the acquired loan portfolio at the acquisition date:
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Pro Forma Combined Financial Results | Merger-related costs have been excluded from these amounts and the provisions for credit loss amounts associated with non-PCD loans and unfunded commitments that were discussed above have also been excluded.
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Securities (Tables) |
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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 June 30, 2023 and December 31, 2022 are summarized as follows:
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Book Values and Fair Values of Held-to-Maturity Securities | The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:
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Schedule of Information Regarding Securities with Unrealized Losses | The following table presents information regarding all securities with unrealized losses at June 30, 2023:
The following table presents information regarding all securities with unrealized losses at December 31, 2022:
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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 June 30, 2023, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Major Categories of Total Loans Outstanding | The following is a summary of the major categories of total loans outstanding:
Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.
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Schedule of Nonperforming Assets and Nonaccrual Loans | The following table summarizes the NPAs for each period presented.
The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2023:
The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2022:
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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:
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Schedule of Analysis of Payment Status | The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2023:
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2022:
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Analysis of Collateral-Dependent Loans | The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2023:
The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2022:
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Schedule of Allowance for Loan Losses | The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the six months ended June 30, 2023 is attributed to the acquisition of GrandSouth. In addition to the "Day 1" allowance recorded for PCD loans of $5.6 million, the Company recorded a "Day 2" initial provision of $12.2 million related to the non-PCD loans in the GrandSouth portfolio. The balance of the change was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to some deterioration in the commercial real estate index.
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Schedule of Recorded Investment in Loans by Credit Quality Indicators | The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
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 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.
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Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring | The followings tables present the amortized cost basis at June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted. Percentages labeled as "NM" are not measurable to the class of financing receivable, as they are less than 0.1% of the total class.
For the three and six months ended June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions. The following tables describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:
The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:
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Summary of Troubled Debt Restructuring | The following table presents information related to loans modified in a TDR during the three and six months ended June 30, 2022.
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.
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SBA Servicing Assets | The following table presents the changes in the SBA servicing assets and SBA servicing income for the three and six months ended June 30, 2023 and 2022:
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Schedule of the Estimated Amortization Expense | The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing 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.
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Schedule of Goodwill | The following table presents the changes in carrying amounts of goodwill:
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Borrowings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following tables present information regarding the Company’s outstanding borrowings at June 30, 2023 and December 31, 2022 (dollars in thousands):
As discussed in Note 1, with the June 30, 2023 cessation of LIBOR, the index for the interest rates on the Company's trust preferred securities will automatically convert to the 3-month CME Term SOFR plus a spread intended to approximate the current interest rate. No material impact on the Company's financial statements is anticipated upon the next interest rate reset based on the SOFR index.
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Lease Payments | Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows.
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Pension Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Components of Pension Costs | The following table contains the components of the pension cost:
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Fair Value (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2023:
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2022:
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Schedule of Significant Unobservable Inputs | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows:
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:
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Schedule of the Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2023 and December 31, 2022 were as follows:
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Stock-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Restricted Stock | The following table presents information regarding the activity for the first six months of 2023 related to the Company’s outstanding restricted stock awards:
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Schedule of Stock Options Roll Forward | Stock option activity and related information is presented below as of and for the periods indicated:
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Schedule of Stock Option Assumptions | The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted:
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Summary of Stock Options | Stock options outstanding are summarized as follows as of June 30, 2023:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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"):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) ("AOCI") for the Company are as follows:
The following tables disclose the changes in AOCI for the three and six months ended June 30, 2023 and 2022 (all amounts are net of tax):
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noninterest Income | The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.
|
Organization and Basis of Presentation (Details) |
Jun. 30, 2023
subsidiary
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 3 |
Acquisitions - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jan. 01, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Liabilities assumed: | ||||
Goodwill | $ 478,750 | $ 364,263 | $ 364,263 | |
GrandSouth | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 22,610 | |||
Securities available for sale | 112,363 | |||
Loans, gross | 996,833 | |||
Allowance for loan losses | 5,610 | |||
Premises and equipment | 20,268 | |||
Core deposit intangible | 28,840 | |||
Operating right-of-use lease assets | 732 | |||
Other assets | 27,163 | |||
Total | 1,203,199 | |||
Liabilities assumed: | ||||
Deposits | 1,045,308 | |||
Borrowings | 38,800 | |||
Other liabilities | 4,089 | |||
Total | 1,088,197 | |||
Net identifiable assets acquired | 115,002 | |||
Total consideration | 229,489 | |||
Goodwill | $ 114,487 |
Acquisitions - Acquired Loans (Details) - GrandSouth $ in Thousands |
Jan. 01, 2023
USD ($)
|
---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Par value | $ 152,487 |
Allowance for loan losses | (5,610) |
Non-credit discount | (1,370) |
Purchase price | 145,507 |
Non-PCD Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fair Value | 845,716 |
Gross contractual amounts receivable | 865,132 |
Estimate of contractual cash flows not expected to be collected | $ 22,542 |
Acquisitions - Summary of Proforma Combined (Details) - GrandSouth - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Business Acquisition [Line Items] | ||||
Pro forma revenue of acquiree since acquisition Date | $ 13,767 | $ 29,307 | ||
Pro forma revenue | $ 110,248 | $ 220,672 | ||
Pro forma net income of acquiree since acquisition date | $ 5,132 | $ 10,951 | ||
Pro forma net income | $ 39,746 | $ 77,213 |
Securities (Narrative) (Details) $ / shares in Units, $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
security
$ / shares
shares
|
Dec. 31, 2022
USD ($)
security
|
|
Debt and Equity Securities, FV-NI [Line Items] | ||
Private mortgage-backed security fair value | $ 800 | $ 800 |
Debt securities, available-for-sale and held-to-maturity, number of positions | security | 657 | 666 |
Number of securities held in an unrealized loss position | security | 645 | 644 |
Investment securities, pledged as collateral for public deposits | $ 1,600,000 | $ 758,000 |
FHLB stock and FRB stock, cost | 54,900 | 39,600 |
FHLB, cost | 22,100 | 14,700 |
FRB stock | $ 32,700 | $ 24,900 |
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 | $ 1.59 | |
Conversion of stock (in shares) | shares | 19,649 |
Loans, Allowance for Credit Losses, and Asset Quality Information - Summary of Nonperforming Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | $ 29,876 | $ 29,876 | $ 28,514 |
Amortization cost basis | 3,654 | 4,862 | |
Total loans | 7,897,629 | 7,897,629 | 6,665,145 |
Nonperforming Financial Instruments | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 29,876 | 29,876 | 28,514 |
Modifications to borrowers in financial distress | 4,862 | 4,862 | 0 |
TDRs - accruing | 0 | 0 | 9,121 |
Total loans | 34,738 | 34,738 | 37,635 |
Foreclosed real estate | 1,077 | 1,077 | 658 |
Total nonperforming assets | $ 35,815 | $ 35,815 | $ 38,293 |
Loans, Allowance for Credit Losses, and Asset Quality Information - Unfunded Loan Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 01, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2022 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Beginning balance | $ 90,967 | $ 106,396 | $ 90,967 | $ 82,069 | $ 90,967 | $ 78,789 | $ 78,789 | |
Provision (reversal) | 3,700 | 0 | 15,151 | 3,500 | 12,600 | |||
Charge-offs | (1,751) | (1,760) | (4,372) | (2,803) | (4,465) | |||
Recoveries | 885 | 1,872 | 1,874 | 2,695 | 4,043 | |||
Ending balance | 109,230 | 106,396 | 82,181 | 109,230 | 82,181 | 90,967 | ||
Unfunded Loan Commitment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Beginning balance | 13,306 | 13,306 | 13,306 | 13,506 | 13,506 | |||
Provision (reversal) | (200) | (2,209) | $ (1,500) | |||||
Charge-offs | 0 | 0 | 0 | |||||
Recoveries | 0 | 0 | 0 | |||||
Ending balance | $ 13,018 | $ 12,006 | 13,018 | $ 12,006 | $ 13,306 | |||
Unfunded Loan Commitment | GrandSouth | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Provision (reversal) | $ 1,900 | $ 0 | $ 1,921 | $ 0 |
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 01, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 2,049 | $ 953 | $ 4,194 | $ 1,970 | ||
SBA guaranteed servicing income | 863 | $ 992 | 1,847 | $ 1,781 | ||
Loans | 7,897,629 | 7,897,629 | $ 6,665,145 | |||
Goodwill impairment | 0 | 0 | ||||
Sold portions of SBA loans with servicing retained - not included in tables above | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans | $ 371,943 | $ 371,943 | $ 392,370 | |||
Customer lists | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life | 5 years | 5 years | ||||
Core deposit intangibles | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life | 10 years | 10 years | ||||
Core deposit intangibles | GrandSouth | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life | 10 years | |||||
Finite-lived intangible assets acquired | $ 28,800 |
Goodwill and Other Intangible Assets (Change in SBA Servicing Assets) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Finite-Lived Intangible Assets [Roll Forward] | ||||
Amortization of intangible assets | $ 2,049 | $ 953 | $ 4,194 | $ 1,970 |
Ending balance, net | 33,316 | 33,316 | ||
SBA guaranteed servicing income | 863 | 992 | 1,847 | 1,781 |
SBA servicing assets | ||||
Finite-Lived Intangible Assets [Roll Forward] | ||||
Beginning balance, net | 3,897 | 5,591 | 4,004 | 5,472 |
Finite-lived intangible assets acquired | 195 | 281 | 271 | 1,026 |
Amortization of intangible assets | 311 | 905 | 494 | 1,531 |
Ending balance, net | $ 3,781 | $ 4,967 | $ 3,781 | $ 4,967 |
Goodwill and Other Intangible Assets - Summary of Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 364,263 | $ 364,263 |
Goodwill acquired during period | 114,487 | 0 |
Goodwill, Ending Balance | $ 478,750 | $ 364,263 |
Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
July 1, 2023 to December 31, 2023 | $ 3,808 |
2024 | 6,604 |
2025 | 5,672 |
2026 | 4,705 |
2027 | 3,951 |
Thereafter | 8,576 |
Finite-Lived Intangible Assets, Net, Total | $ 33,316 |
Leases (Narrative) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
branchOffice
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
branchOffice
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||||
Weighted average remaining lease term | 19 years 3 months 18 days | 19 years 3 months 18 days | |||
Weighted average discount rate | 3.07% | 3.07% | |||
Total operating lease expense | $ 800 | $ 700 | $ 1,500 | $ 1,600 | |
Operating right-of-use lease assets | 18,375 | 18,375 | $ 18,733 | ||
Operating lease liabilities | $ 19,109 | $ 19,109 | $ 19,391 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Option extension period | 5 years | 5 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Option extension period | 10 years | 10 years | |||
Land and Building | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of branch locations | branchOffice | 17 | 17 | |||
Land | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of branch locations | branchOffice | 10 | 10 |
Leases (Schedule of Estimated Lease Payments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
July 1, 2023 to December 31, 2023 | $ 1,180 | |
2024 | 2,163 | |
2025 | 1,706 | |
2026 | 1,685 | |
2027 | 1,547 | |
Thereafter | 18,441 | |
Total undiscounted lease payments | 26,722 | |
Less effect of discounting | (7,613) | |
Present value of estimated lease payments (lease liability) | $ 19,109 | $ 19,391 |
Pension Plans (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023
USD ($)
plan
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
plan
|
Jun. 30, 2022
USD ($)
|
|
Retirement Benefits [Abstract] | ||||
Number of defined benefit plans | plan | 2 | 2 | ||
Net periodic pension cost (income) | $ 50,000 | $ 51,000 | $ 101,000 | $ 102,000 |
Contributions to plan | 0 | |||
Expected contributions to plan | $ 0 | 0 | ||
Termination cost, estimate | $ 2,400,000 |
Pension Plans (Components of Pension Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 294 | 295 | 589 | 590 |
Expected return on plan assets | (288) | (288) | (576) | (576) |
Amortization of net loss (gain) | 44 | 44 | 88 | 88 |
Net periodic pension cost | 50 | 51 | 101 | 102 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 266 | 267 | 533 | 534 |
Expected return on plan assets | (288) | (288) | (576) | (576) |
Amortization of net loss (gain) | 180 | 180 | 360 | 360 |
Net periodic pension cost | 158 | 159 | 317 | 318 |
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 28 | 28 | 56 | 56 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (136) | (136) | (272) | (272) |
Net periodic pension cost | $ (108) | $ (108) | $ (216) | $ (216) |
Stock-Based Compensation (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock Awards |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Number of Units | |
Nonvested, beginning (in shares) | shares | 223,012 |
Granted during the period (in shares) | shares | 143,380 |
Vested during the period (in shares) | shares | (25,811) |
Forfeited or expired during the period (in shares) | shares | (791) |
Nonvested, ending (in shares) | shares | 339,790 |
Weighted-Average Grant-Date Fair Value | |
Nonvested, beginning (in dollars per share) | $ / shares | $ 36.14 |
Granted during the period (in dollars per share) | $ / shares | 37.08 |
Vested during the period (in dollars per share) | $ / shares | 24.52 |
Forfeited or expired during the period (in dollars per share) | $ / shares | 37.88 |
Nonvested, ending (in dollars per share) | $ / shares | $ 37.15 |
Stock-Based Compensation - Summary of Stock Option Assumptions (Details) - Stock Options |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average replacement price (in dollars per share) | $ 24.85 |
Expected stock price volatility, weighted average | 46.39% |
Expected dividend yield | 2.05% |
Risk-free interest rate, weighted average | 4.18% |
Expected forfeiture rate | 0 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 1 year 4 months 24 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 4 years 8 months 12 days |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Basic EPS: | ||||
Net income | $ 29,403 | $ 36,585 | $ 44,564 | $ 70,554 |
Less: income allocated to restricted stock | (201) | (172) | (299) | (326) |
Basic EPS per common share | $ 29,202 | $ 36,413 | $ 44,265 | $ 70,228 |
Basic (in shares) | 40,721,840 | 35,474,664 | 40,665,172 | 35,476,902 |
Basic (in dollars per share) | $ 0.72 | $ 1.03 | $ 1.09 | $ 1.98 |
Diluted EPS: | ||||
Net income | $ 29,403 | $ 36,585 | $ 44,564 | $ 70,554 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Diluted EPS per common share | $ 29,403 | $ 36,585 | $ 44,564 | $ 70,554 |
Basic (in shares) | 40,721,840 | 35,474,664 | 40,665,172 | 35,476,902 |
Effect of dilutive securities (in shares) | 407,260 | 167,807 | 458,697 | 164,826 |
Diluted (in shares) | 41,129,100 | 35,642,471 | 41,123,869 | 35,641,728 |
Diluted (in dollars per share) | $ 0.71 | $ 1.03 | $ 1.08 | $ 1.98 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | $ (338,142) | $ (341,975) |
Unrealized Loss on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | (440,145) | (444,063) |
Deferred tax asset | 101,894 | 102,046 |
Total accumulated other comprehensive income (loss) | (338,251) | (342,017) |
Postretirement Plans Asset (Liability) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive income (loss) | 143 | 54 |
Deferred tax asset | (34) | (12) |
Total accumulated other comprehensive income (loss) | $ 109 | $ 42 |
Revenue from Contracts with Customers (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
NONINTEREST INCOME | ||||
Service charges on deposit accounts | $ 4,114 | $ 3,700 | $ 8,008 | $ 7,241 |
Other service charges and fees: | ||||
Bankcard interchange income, net | 2,368 | 4,812 | 4,950 | 9,523 |
Other service charges and fees | 3,255 | 1,490 | 6,572 | 2,753 |
Commissions from sales of financial products | 1,413 | 1,151 | 2,719 | 2,096 |
SBA consulting fees | 409 | 704 | 930 | 1,484 |
Noninterest income (in-scope of ASC 606) | 11,559 | 11,857 | 23,179 | 23,097 |
Noninterest income (out-of-scope of ASC 606) | 2,676 | 5,407 | 4,592 | 13,418 |
Total noninterest income | $ 14,235 | $ 17,264 | $ 27,771 | $ 36,515 |
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