Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-15572 | ||
Entity Registrant Name | FIRST BANCORP | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 56-1421916 | ||
Entity Address, Address Line One | 300 SW Broad St., | ||
Entity Address, City or Town | Southern Pines, | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28387 | ||
City Area Code | (910) | ||
Local Phone Number | 246-2500 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | FBNC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 711,100,000 | ||
Entity Common Stock, Shares Outstanding | 28,492,779 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement to be filed pursuant to Regulation 14A are incorporated herein by reference into Part III. | ||
Entity Central Index Key | 0000811589 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks, noninterest-bearing | $ 93,724 | $ 64,519 |
Due from banks, interest-bearing | 273,566 | 166,783 |
Total cash and cash equivalents | 367,290 | 231,302 |
Securities available for sale | 1,453,132 | 821,945 |
Securities held to maturity (fair values of $170,734 in 2020 and $68,333 in 2019) | 167,551 | 67,932 |
Presold mortgages in process of settlement | 42,271 | 19,712 |
SBA loans held for sale | 6,077 | 0 |
Loans | 4,731,315 | 4,453,466 |
Allowance for loan losses | (52,388) | (21,398) |
Net loans | 4,678,927 | 4,432,068 |
Premises and equipment | 120,502 | 114,859 |
Operating right-of-use lease assets | 17,514 | 19,669 |
Accrued interest receivable | 20,272 | 16,648 |
Goodwill | 239,272 | 234,368 |
Other intangible assets | 15,366 | 17,217 |
Foreclosed properties | 2,424 | 3,873 |
Bank-owned life insurance | 106,974 | 104,441 |
Other assets | 52,179 | 59,605 |
Total assets | 7,289,751 | 6,143,639 |
Liabilities | ||
Deposits: Noninterest-bearing checking accounts | 2,210,012 | 1,515,977 |
Interest-bearing checking accounts | 1,172,022 | 912,784 |
Money market accounts | 1,581,364 | 1,173,107 |
Savings accounts | 519,266 | 424,415 |
Time deposits of $100,000 or more | 564,365 | 649,947 |
Other time deposits | 226,567 | 255,125 |
Total deposits | 6,273,596 | 4,931,355 |
Borrowings | 61,829 | 300,671 |
Accrued interest payable | 904 | 2,154 |
Operating lease liabilities | 17,868 | 19,855 |
Other liabilities | 42,133 | 37,203 |
Total liabilities | 6,396,330 | 5,291,238 |
Commitments and contingencies (see Note 12) | ||
Shareholders’ Equity | ||
Preferred stock | 0 | 0 |
Common stock | 400,582 | 429,514 |
Retained earnings | 478,489 | 417,764 |
Stock in rabbi trust assumed in acquisition | (2,243) | (2,587) |
Rabbi trust obligation | 2,243 | 2,587 |
Accumulated other comprehensive income (loss) | 14,350 | 5,123 |
Total shareholders’ equity | 893,421 | 852,401 |
Total liabilities and shareholders’ equity | $ 7,289,751 | $ 6,143,639 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity fair values | $ 170,734 | $ 68,333 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 28,579,335 | 29,601,264 |
Common stock, shares outstanding (in shares) | 28,579,335 | 29,601,264 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income | |||
Interest and fees on loans | $ 213,099 | $ 220,784 | $ 208,609 |
Interest on investment securities: | |||
Taxable interest income | 20,429 | 19,881 | 10,638 |
Tax-exempt interest income | 725 | 1,007 | 1,482 |
Other, principally overnight investments | 3,431 | 8,435 | 10,478 |
Total interest income | 237,684 | 250,107 | 231,207 |
Interest Expense | |||
Savings, checking and money market accounts | 6,551 | 9,551 | 5,074 |
Time deposits of $100,000 or more | 8,215 | 13,598 | 8,356 |
Other time deposits | 1,535 | 1,901 | 1,061 |
Borrowings | 3,261 | 8,853 | 9,286 |
Total interest expense | 19,562 | 33,903 | 23,777 |
Net interest income | 218,122 | 216,204 | 207,430 |
Provision (reversal) for loan losses | 35,039 | 2,263 | (3,589) |
Net interest income after provision for loan losses | 183,083 | 213,941 | 211,019 |
Noninterest Income | |||
Service charges on deposit accounts | 11,098 | 12,970 | 12,690 |
Other service charges, commissions and fees | 20,097 | 19,481 | 16,488 |
Fees from presold mortgage loans | 14,183 | 3,944 | 2,735 |
Commissions from sales of insurance and financial products | 8,848 | 8,495 | 8,731 |
SBA consulting fees | 8,644 | 3,872 | 4,675 |
SBA loan sale gains | 7,973 | 8,275 | 10,366 |
Bank-owned life insurance income | 2,533 | 2,564 | 2,534 |
Securities gains, net | 8,024 | 97 | 0 |
Other gains (losses), net | (54) | (169) | 723 |
Total noninterest income | 81,346 | 59,529 | 58,942 |
Noninterest Expenses | |||
Salaries | 84,941 | 79,129 | 75,077 |
Employee benefits | 16,027 | 16,844 | 16,888 |
Total personnel expense | 100,968 | 95,973 | 91,965 |
Occupancy expense | 11,278 | 11,122 | 10,793 |
Equipment related expenses | 4,285 | 5,023 | 5,627 |
Merger and acquisition expenses | 0 | 192 | 2,358 |
Intangibles amortization | 3,956 | 4,858 | 5,917 |
Foreclosed property losses, net | 547 | 939 | 565 |
Other operating expenses | 40,264 | 39,087 | 39,258 |
Total noninterest expenses | 161,298 | 157,194 | 156,483 |
Income before income taxes | 103,131 | 116,276 | 113,478 |
Income tax expense | 21,654 | 24,230 | 24,189 |
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Earnings per common share: Basic (in usd per shares) | $ 2.81 | $ 3.10 | $ 3.02 |
Diluted (in dollars per share) | 2.81 | 3.10 | 3.01 |
Dividends declared per common share (in usd per shares) | $ 0.72 | $ 0.54 | $ 0.40 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 28,839,866 | 29,547,851 | 29,566,259 |
Diluted (in shares) | 28,981,567 | 29,720,499 | 29,707,431 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Unrealized gains (losses) on securities available for sale: | |||
Unrealized holding gains (losses) arising during the period, pretax | 18,729 | 22,230 | (10,179) |
Tax (expense) benefit | (4,304) | (5,157) | 2,379 |
Reclassification to realized (gains) losses | (8,024) | (97) | 0 |
Tax expense (benefit) | 1,844 | 22 | 0 |
Postretirement plans: | |||
Net gain (loss) arising during period | 589 | (686) | (41) |
Tax (expense) benefit | (135) | 158 | 10 |
Amortization of unrecognized net actuarial loss | 686 | 814 | 21 |
Tax benefit | (158) | (200) | (5) |
Other comprehensive income (loss) | 9,227 | 17,084 | (7,815) |
Comprehensive income | $ 90,704 | $ 109,130 | $ 81,474 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Stock in rabbi trust assumed in acquisition | Rabbi trust obligation | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2017 | 29,639,000 | |||||
Beginning balance at Dec. 31, 2017 | $ 692,979 | $ 432,794 | $ 264,331 | $ (3,581) | $ 3,581 | $ (4,146) |
Net income | 89,289 | 89,289 | ||||
Cash dividends declared | (11,882) | (11,882) | ||||
Change in Rabbi Trust Obligation | $ 0 | 346 | (346) | |||
Stock option exercises (in shares) | 29,689 | 25,000 | ||||
Stock option exercises | $ 324 | $ 324 | ||||
Stock withheld for payment of taxes (in shares) | (11,000) | |||||
Stock withheld for payment of taxes | (406) | $ (406) | ||||
Stock-based compensation (in shares) | 72,000 | |||||
Stock-based compensation | 1,741 | $ 1,741 | ||||
Other comprehensive income (loss) | (7,815) | (7,815) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 29,725,000 | |||||
Ending balance at Dec. 31, 2018 | 764,230 | $ 434,453 | 341,738 | (3,235) | 3,235 | (11,961) |
Net income | 92,046 | 92,046 | ||||
Cash dividends declared | (16,020) | (16,020) | ||||
Equity issued related to acquisitions (in shares) | 78,000 | |||||
Equity issued related to acquisition | 3,070 | $ 3,070 | ||||
Change in Rabbi Trust Obligation | 0 | 648 | (648) | |||
Stock repurchases (in shares) | (282,000) | |||||
Stock repurchases | $ (10,000) | $ (10,000) | ||||
Stock option exercises (in shares) | 9,000 | 9,000 | ||||
Stock option exercises | $ 129 | $ 129 | ||||
Stock withheld for payment of taxes (in shares) | (20,000) | |||||
Stock withheld for payment of taxes | (702) | $ (702) | ||||
Stock-based compensation (in shares) | 91,000 | |||||
Stock-based compensation | 2,564 | $ 2,564 | ||||
Other comprehensive income (loss) | $ 17,084 | 17,084 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 29,601,264 | 29,601,000 | ||||
Ending balance at Dec. 31, 2019 | $ 852,401 | $ 429,514 | 417,764 | (2,587) | 2,587 | 5,123 |
Net income | 81,477 | 81,477 | ||||
Cash dividends declared | (20,752) | (20,752) | ||||
Equity issued related to acquisitions (in shares) | 24,000 | |||||
Equity issued related to acquisition | 494 | $ 494 | ||||
Change in Rabbi Trust Obligation | 0 | 344 | (344) | |||
Stock repurchases (in shares) | (1,117,000) | |||||
Stock repurchases | $ (31,868) | $ (31,868) | ||||
Stock option exercises (in shares) | 0 | |||||
Stock withheld for payment of taxes (in shares) | (11,000) | |||||
Stock withheld for payment of taxes | $ (307) | $ (307) | ||||
Stock-based compensation (in shares) | 82,000 | |||||
Stock-based compensation | 2,749 | $ 2,749 | ||||
Other comprehensive income (loss) | $ 9,227 | 9,227 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 28,579,335 | 28,579,000 | ||||
Ending balance at Dec. 31, 2020 | $ 893,421 | $ 400,582 | $ 478,489 | $ (2,243) | $ 2,243 | $ 14,350 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in usd per shares) | $ 0.72 | $ 0.54 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||
Net income | $ 81,477,000 | $ 92,046,000 | $ 89,289,000 |
Reconciliation of net income to net cash provided by operating activities: | |||
Provision (reversal) for loan losses | 35,039,000 | 2,263,000 | (3,589,000) |
Net security premium amortization | 5,019,000 | 2,653,000 | 2,749,000 |
Loan discount accretion | (6,328,000) | (5,974,000) | (7,812,000) |
Other purchase accounting accretion and amortization, net | 81,000 | (9,000) | (190,000) |
Foreclosed property losses and write-downs, net | 547,000 | 939,000 | 565,000 |
Gains on securities available for sale | (8,024,000) | (97,000) | 0 |
Other losses (gains) | 54,000 | 169,000 | (723,000) |
Bank-owned life insurance income | (2,533,000) | (2,564,000) | (2,534,000) |
Decrease (increase) in net deferred loan costs | 5,639,000 | (642,000) | (2,285,000) |
Depreciation of premises and equipment | 5,838,000 | 5,836,000 | 6,077,000 |
Amortization of operating lease right-of-use assets | 2,012,000 | 1,857,000 | 0 |
Repayments of lease obligations | (1,844,000) | (1,669,000) | 0 |
Stock-based compensation expense | 2,540,000 | 2,270,000 | 1,569,000 |
Amortization of intangible assets | 3,956,000 | 4,858,000 | 5,917,000 |
Amortization of SBA servicing assets | 1,795,000 | 1,340,000 | 846,000 |
Gains from sale of presold mortgage and SBA loans | (22,156,000) | (12,219,000) | (13,101,000) |
Originations of presold mortgage loans in process of settlement | (418,394,000) | (173,705,000) | (118,791,000) |
Proceeds from sales of presold mortgage loans in process of settlement | 410,898,000 | 162,476,000 | 129,519,000 |
Origination of SBA loans for sale | (147,934,000) | (150,677,000) | (196,784,000) |
Proceeds from sales of SBA loans | 115,460,000 | 124,527,000 | 157,427,000 |
Increase in accrued interest receivable | (3,624,000) | (644,000) | (1,910,000) |
(Increase) decrease in other assets | (991,000) | (3,171,000) | 6,059,000 |
(Decrease) increase in accrued interest payable | (1,250,000) | 178,000 | 741,000 |
(Decrease) increase in net deferred income tax liability | 10,007,000 | (1,588,000) | (1,601,000) |
Increase (decrease) in other liabilities | 9,805,000 | (391,000) | (8,230,000) |
Net cash provided by operating activities | 57,075,000 | 51,238,000 | 46,410,000 |
Cash Flows From Investing Activities | |||
Purchases of securities available for sale | (1,060,054,000) | (498,891,000) | (230,794,000) |
Purchases of securities held to maturity | (133,611,000) | 0 | 0 |
Proceeds from maturities/issuer calls of securities available for sale | 223,842,000 | 158,920,000 | 60,871,000 |
Proceeds from maturities/issuer calls of securities held to maturity | 33,030,000 | 32,461,000 | 16,183,000 |
Proceeds from sales of securities available for sale | 219,697,000 | 39,797,000 | 0 |
Redemptions (purchases) of FRB and FHLB stock, net | 9,851,000 | 4,088,000 | |
Redemptions (purchases) of FRB and FHLB stock, net | (6,129,000) | ||
Net increase in loans | (233,788,000) | (165,203,000) | (152,972,000) |
Proceeds from sales of foreclosed properties | 2,485,000 | 5,877,000 | 7,532,000 |
Purchases of premises and equipment | (12,363,000) | (3,534,000) | (10,723,000) |
Proceeds from sales of premises and equipment | 189,000 | 1,799,000 | 2,753,000 |
Net cash paid in acquisitions | (9,559,000) | 0 | 0 |
Net cash used by investing activities | (960,281,000) | (424,686,000) | (313,279,000) |
Cash Flows From Financing Activities | |||
Net increase in deposits | 1,342,340,000 | 272,206,000 | 252,756,000 |
Net (decrease) increase in short-term borrowings | (198,000,000) | (55,000,000) | 50,000,000 |
Proceeds from long-term borrowings | 150,000,000 | 0 | 50,000,000 |
Payments on long-term borrowings | (202,035,000) | (51,119,000) | (101,116,000) |
Cash dividends paid – common stock | (20,936,000) | (13,662,000) | (11,281,000) |
Repurchases of common stock | (31,868,000) | (10,000,000) | 0 |
Proceeds from stock option exercises | 0 | 129,000 | 324,000 |
Payment of taxes related to stock withheld | (307,000) | (702,000) | (406,000) |
Net cash provided by financing activities | 1,039,194,000 | 141,852,000 | 240,277,000 |
Increase (decrease) in Cash and Cash Equivalents | 135,988,000 | (231,596,000) | (26,592,000) |
Cash and Cash Equivalents, Beginning of Year | 231,302,000 | 462,898,000 | 489,490,000 |
Cash and Cash Equivalents, End of Year | 367,290,000 | 231,302,000 | 462,898,000 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid during the period for interest | 20,812,000 | 33,725,000 | 23,036,000 |
Cash paid during the period for income taxes | 29,604,000 | 24,336,000 | 21,162,000 |
Non-cash: Foreclosed loans transferred to foreclosed real estate | 1,583,000 | 3,249,000 | 4,148,000 |
Non-cash: Unrealized gain (loss) on securities available for sale, net of taxes | 14,425,000 | 17,073,000 | (7,800,000) |
Non-cash: Initial recognition of operating lease right-of-use assets and liabilities | 253,000 | 19,406,000 | 0 |
Non-cash: Loans acquired | 494,000 | 3,070,000 | 0 |
Non-cash: Loans acquired | 14,633,000 | 0 | 0 |
Non-cash: Other assets acquired | 451,000 | 0 | 0 |
Non-cash: Borrowings assumed | $ 11,671,000 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 four wholly owned subsidiaries that are fully consolidated - First Bank Insurance Services, Inc. (“First Bank Insurance”), SBA Complete, Inc. (“SBA Complete”), Magnolia Financial, Inc. ("Magnolia Financial"), and First Troy SPE, LLC. All significant intercompany accounts and transactions have been eliminated. Subsequent events have been evaluated through the date of filing this Form 10-K. The Company is a bank holding company. The principal activity of the Company is the ownership and operation of the Bank, a state chartered bank with its main office in Southern Pines, North Carolina. The Company is also the parent company for a series of statutory trusts that were formed at various times since 2002 for the purpose of issuing trust preferred debt securities. The trusts are not consolidated for financial reporting purposes; however, notes issued by the Company to the trusts in return for the proceeds from the issuance of the trust preferred securities are included in the consolidated financial statements and have terms that are substantially the same as the corresponding trust preferred securities. The trust preferred securities qualify as capital for regulatory capital adequacy requirements. First Bank Insurance is an agent for property and casualty insurance policies. SBA Complete specializes in providing consulting services for financial institutions across the country related to Small Business Administration (“SBA”) loan origination and servicing. Magnolia Financial is a business financing company that makes loans throughout the southeastern United States. First Troy SPE, LLC was formed in order to hold and dispose of certain real estate foreclosed upon by the Bank. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by the Company in the preparation of its consolidated financial statements are the determination of the allowance for loan losses, the valuation of other real estate, the accounting and impairment testing related to intangible assets, and the fair value and discount accretion of acquired loans. Operating, Accounting and Reporting Considerations related to COVID-19 - The coronavirus (COVID-19) pandemic has negatively impacted the global economy, disrupted global supply chains and increased unemployment levels. The resulting temporary closure of many businesses and the implementation of social distancing and sheltering-in-place policies have impacted and may continue to impact many of the Company’s customers. While the full effects of the pandemic remain unknown, the Company is committed to supporting its customers, employees and communities during this difficult time. The Company has provided hardship relief assistance to customers, including the consideration of various loan payment deferral and fee waiver options, and encouraged customers to reach out for assistance to support their individual circumstances. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by the President of the United States. Certain provisions within the CARES Act encourage financial institutions to practice prudent efforts to work with borrowers impacted by COVID-19. Under these provisions, which the Company has applied, loan modifications deemed to be COVID-19-related are not considered a troubled debt restructuring (“TDR”) if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. In December 2020, this CARES Act provision was extended to December 31, 2021. The banking regulators issued similar guidance, which also clarified that a COVID-19-related modification would not meet the requirements under accounting principles generally accepted in the United States of America to be a TDR if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification is considered to be short-term. The Company generally offered impacted borrowers loan payment deferrals of 90 days in duration. The Company offered subsequent 90 day deferrals if requested by the borrower. Any deferred amounts were generally added by the Company to the payoff balance of the loan at maturity. Most of the deferral requests occurred during the second quarter of 2020, and in the second half of 2020, most of those borrowers resumed payments. As of December 31, 2020, the Company had remaining payment deferrals of $16.6 million. Additionally, the Company is a lender for the Small Business Administration's (“SBA”) Paycheck Protection Program ("PPP"), a program under the CARES Act, and other SBA, Federal Reserve or United States Treasury programs that have been created in response to the pandemic and may be a lender under such programs created in the future. These programs are recent and their effects on the Company’s business remain uncertain. The Company originated $245 million in PPP loans during the second quarter of 2020. The Company began accepting and transmitting PPP loan forgiveness documentation to the SBA in the fourth quarter of 2020 and had received $4.0 million in PPP forgiveness payoffs from the SBA as of December 31, 2020. At December 31, 2020, the Company had 2,676 PPP loans outstanding totaling approximately $241 million. In December 2020, the Bipartisan-Bicameral Omnibus COVID Relief Deal, included as a component of appropriations legislation, and the Economic Aid Act were enacted to provide economic stimulus to individuals and businesses in further response to the economic distress caused by the COVID-19 pandemic. Among other things, the legislation includes stimulus payment for individuals under certain income thresholds, extension of enhanced unemployment benefits, a rental assistance program, an extension of the eviction moratorium, targeted funding related to public health measures and small business relief, which included additional funds for PPP loans. In a period of economic contraction, elevated levels of loan losses and lost interest income may occur. The Company continues to accrue interest on loans modified in accordance with the CARES Act. To the extent those borrowers are unable to resume normal contractual payments, the Company could experience additional losses of principal and interest. The extent to which the COVID-19 pandemic has a further impact the Company's business, results of operations, and financial condition, as well as the Company's regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities and other third parties in response to the COVID-19 pandemic. Business Combinations – The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of common shares issued is determined based on the market price of the stock as of the closing of the acquisition. Cash and Cash Equivalents - The Company considers all highly liquid assets with original maturities of 90 days or less, such as cash on hand, noninterest-bearing and interest-bearing amounts due from banks and federal funds sold, to be “cash equivalents.” Securities - Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Debt securities not classified as held to maturity are classified as “available for sale” and carried at fair value, with unrealized gains and losses being reported as other comprehensive income or loss and reported as a separate component of shareholders’ equity. A decline in the market value of any available for sale or held to maturity security below cost that is deemed to be other than temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Gains and losses on sales of securities are recognized at the time of sale based upon the specific identification method. Premiums and discounts are amortized into income on a level yield basis, with premiums being amortized to the earliest call date and discounts being accreted to the stated maturity date. Presold Mortgages in Process of Settlement - As a part of normal business operations, the Company originates residential mortgage loans that have been pre-approved by secondary investors to be sold on a best efforts basis. The terms of the loans are set by the secondary investors, and the purchase price that the investor will pay for the loan is agreed to prior to the funding of the loan by the Company. Generally within three weeks after funding, the loans are transferred to the investor in accordance with the agreed-upon terms. The Company records gains from the sale of these loans on the settlement date of the sale equal to the difference between the proceeds received and the carrying amount of the loan. Additionally, the Company records gains for loans in the process of closing, based on the changes in fair value of the loans and related commitments. Between the initial funding of the loans by the Company and the subsequent reimbursement by the investors, the Company carries the loans on its balance sheet at fair value. Periodically, the Company originates other types of commercial loans and decides to sell them in the secondary market. The Company carries these loans at the lower of cost or fair value at each reporting date. There were no such loans held for sale as of December 31, 2020 or 2019, respectively. SBA Loans Held for Sale - SBA Loans Held for Sale represent the guaranteed portion of SBA loans that the Company intends to sell in the near future. These loans are carried at the lower of cost or market as determined on an individual loan basis. There were $6.1 million in SBA loans held for sale as of December 31, 2020 and none at December 31, 2019, respectively. Loans – Loans are stated at the principal amount outstanding less any partial charge-offs plus deferred origination costs, net of nonrefundable loan fees. Interest on loans is accrued on the unpaid principal balance outstanding. Net deferred loan origination costs/fees are capitalized and recognized as a yield adjustment over the life of the related loan. Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. No allowance for loan losses is carried over from the seller or otherwise recorded on the purchase date. The Company follows specific accounting guidance related to purchased impaired loans. A loan is considered to be a purchased credit impaired loan when purchased loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due, risk grade and nonaccrual status. At the acquisition date, when possible, a stream of expected cash flows is estimated and compared to the estimated fair value in order to determine the accretable yield amount, which is then recognized over the life of the loan based on the effective yield method. Throughout the life of the loan, the stream of expected cash flows may change based on actual results of the loan or the assumptions related to the future performance. Subsequent changes of expected cash flows may result in changes to accretable yield if the present value of expected cash flows exceeds the carrying value or an impairment reserve if the present value of expected cash flows is less than the carrying amount. For purchased impaired loans for which the timing and amount of cash flows expected to be collected cannot be reasonably estimated, the Company uses the cost recovery method of income recognition. Under the cost recovery method of income recognition, all cash receipts are initially applied to principal, with interest income being recorded only after the carrying value of the loan has been reduced to zero. For nonimpaired purchased loans, the Company accretes any fair value discount over the life of the loan in a manner consistent with the guidance for accounting for loan origination fees and costs. An allowance for loan losses is recorded for these loans when the estimated credit losses exceed the remaining unamortized discounts, based on pools of similar loans. A loan is placed on nonaccrual status when, in management’s judgment, the collection of interest appears doubtful. The accrual of interest is discontinued on substantially all loans that become 90 days or more past due with respect to principal or interest. The past due status of loans is based on the contractual payment terms. While a loan is on nonaccrual status, the Company’s policy is that all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to recoveries of any amounts previously charged off. Further cash receipts are recorded as interest income to the extent that any interest has been foregone. Loans are removed from nonaccrual status when they become current as to both principal and interest, when concern no longer exists as to the collectability of principal or interest, and when the loan has provided generally six months of satisfactory payment performance. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the originally contracted terms. For a nonaccrual loan that has been restructured, if the borrower has six months of satisfactory performance under the restructured terms and it is reasonably assured that the borrower will continue to be able to comply with the restructured terms, the loan may be returned to accruing status. The nonaccrual policy discussed above applies to all loan classifications. A loan is considered to be impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is specifically evaluated for an appropriate valuation allowance if the loan balance is above a prescribed evaluation threshold (which varies based on credit quality, accruing status, troubled debt restructured status, and type of collateral) and the loan is determined to be impaired. Impaired loans are measured using either 1) an estimate of the cash flows that the Company expects to receive from the borrower discounted at the loan’s effective rate, or 2) in the case of a collateral-dependent loan, the fair value of the collateral less estimated selling costs. Unless restructured, while a loan is considered to be impaired, the Company’s policy is that interest accrual is discontinued and all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to recoveries of any amounts previously charged off. Further cash receipts are recorded as interest income to the extent that any interest has been foregone. Impaired loans that are restructured are returned to accruing status in accordance with the restructured terms if the Company believes that the borrower will be able to meet the obligations of the restructured loan terms, and the loan has provided generally six months of satisfactory payment performance. The impairment policy discussed above applies to all loan classifications. SBA Loan Originations – Through its SBA Lending Division, the Company offers loans guaranteed by the Small Business Administration (“SBA”) for the purchase of businesses, business startups, business expansion, equipment, and working capital. All SBA loans are underwritten and documented as prescribed by the SBA. SBA loans are generally fully amortizing and have maturity dates and amortizations of up to 25 years. The portion of SBA loans originated that are guaranteed and intended for sale on the secondary market are classified as held for sale and are carried at the lower of cost or fair value. The Company generally sells the guaranteed portion of the SBA loan as soon as it is eligible to be sold and retains the servicing right. When the guaranteed portion of an SBA loan is sold, the Company allocates the carrying basis of the loan between the guaranteed portion of the loan sold, the unguaranteed portion of the loans retained, and the servicing asset based on their relative fair values. A gain is recorded for the difference between the proceeds received from the sale and the basis allocated to the sold portion. The relative fair value allocation results in a discount that is recorded on the unguaranteed portion of the loan that is retained. The discount is amortized as a yield adjustment over the life of the loan, so long as the loan performs. In the event the loan is moved to nonaccrual status, the Company ceases the amortization of the discount and upon any subsequent transfer to foreclosed properties or liquidation of the loan, the remaining discount is amortized, along with any remaining servicing asset and deferred loan costs. The foregoing discussion relates to the Company's activities in the SBA's Section 7(a) and similar programs. For information on the Company's participation in the SBA's PPP program, see Note 4 below. Also see SBA Servicing Assets below. Allowance for Loan Losses - The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged-off against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Recoveries on loans previously charged-off are added back to the allowance. The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance considered adequate to absorb losses inherent in the portfolio. Management’s determination of the adequacy of the allowance is based on several factors, including: 1. Risk grades assigned to the loans in the portfolio, 2. Specific reserves for individually evaluated impaired loans, 3. Current economic conditions, including the local, state, and national economic outlook; interest rate risk; trends in loan volume, mix and size of loans; levels and trends of delinquencies, 4. Historical loan loss experience, and 5. An assessment of the risk characteristics of the Company’s loan portfolio, including industry concentrations, payment structures, changes in property values, and credit administration practices. The Company segments the loan portfolio into broad categories with similar risk elements for the purposes of computing the allowance for loan losses. Those categories and their specific risks are described below. Commercial, financial, and agricultural - Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Also included in this category for 2020 are PPP loans, which are fully guaranteed by the SBA and thus have minimal risk. Real estate - construction, land development, & other land loans - Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans (see below). Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Real estate - mortgage - residential (1-4 family) first - Residential mortgage loans are susceptible to weakening general economic conditions and increases in unemployment rates and declining real estate values. Real estate - mortgage - home equity loans / lines of credit - Risks common to home equity loans and lines of credit are general economic conditions, including an increase in unemployment rates, and declining real estate values which reduce or eliminate the borrower’s home equity. Real estate - mortgage - commercial and other - Loans in this category are susceptible to declines in occupancy rates, business failure and general economic conditions. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category. Consumer loans - Risks common to these loans include regulatory risks, unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property . While management uses the best information available to make evaluations, future adjustments may be necessary if economic and other conditions differ substantially from the assumptions used. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on the examiners’ judgment about information available to them at the time of their examinations. Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over financial assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Premises and Equipment - Premises and equipment are stated at cost less accumulated depreciation. Depreciation, computed by the straight-line method, is charged to operations over the estimated useful lives of the properties, which range from 2 to 40 years or, in the case of leasehold improvements, over the term of the lease, if shorter. Land is carried at cost. Maintenance and repairs are charged to operations in the year incurred. Gains and losses on dispositions are included in current operations. Goodwill and Other Intangible Assets - Business combinations are accounted for using the acquisition method of accounting. Identifiable intangible assets are recognized separately and are amortized over their estimated useful lives, which for the Company has generally been seven SBA Servicing Assets - When the Company sells the guaranteed portion of an SBA loan, the Company continues to perform the servicing on the loan and collects a fee related to the sold portion of the loan. A SBA servicing asset is recorded for the fair value of that fee based on a discounted cash flow analysis. SBA servicing assets are included in “Other intangible assets” on the Consolidated Balance Sheets. SBA servicing assets are amortized against income over the lives of the related loans as a reduction of servicing fee income. SBA servicing assets are tested for impairment on a quarterly basis by comparing their estimated fair values, aggregated by year of origination, to the related carrying values. Foreclosed Properties - Foreclosed properties consists primarily of real estate acquired by the Company through legal foreclosure or deed in lieu of foreclosure. The property is initially carried at the lower of cost or the estimated fair value of the property less estimated selling costs (also see Note 13). If there are subsequent declines in fair value, which is reviewed routinely by management, the property is written down to its fair value through a charge to expense. Capital expenditures made to improve the property are capitalized. Costs of holding real estate, such as property taxes, insurance and maintenance, less related revenues during the holding period, are recorded as expense as they are incurred. Bank-owned life insurance – The Company has purchased life insurance policies on certain current and past key employees and directors where the insurance policy benefits and ownership are retained by the employer. These policies are recorded at their cash surrender value. Income from these policies and changes in the net cash surrender value are recorded within noninterest income as “Bank-owned life insurance income.” Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced, if necessary, by the amount of such benefits that are not expected to be realized based upon available evidence. Other Investments – The Company accounts for substantially all of its investments in limited partnerships, limited liability companies (“LLCs”), and other privately held companies using the equity method of accounting. The accounting treatment depends upon the Company’s percentage ownership and degree of management influence. Under the equity method of accounting, the Company records its initial investment at cost. Subsequently, the carrying amount of the investment is increased or decreased to reflect the Company’s share of income or loss of the investee. The Company’s recognition of earnings or losses from an equity method investment is based on the Company’s ownership percentage in the investee and the investee’s earnings on a quarterly basis. The investees generally provide their financial information during the quarter following the end of a given period. The Company’s policy is to record its share of earnings or losses on equity method investments in the quarter the financial information is received. All of the Company’s investments in limited partnerships, LLCs, and other companies are privately held, and their market values are not readily available. The Company’s management evaluates its investments in investees for impairment based on the investee’s ability to generate cash through its operations or obtain alternative financing, and other subjective factors. There are inherent risks associated with the Company’s investments in such companies, which may result in income statement volatility in future periods. At December 31, 2020 and 2019, the Company’s investments in limited partnerships, LLCs and other privately held companies totaled $7.8 million and $8.0 million, respectively, and are included in "Other assets". Also see Note 3 for discussion of an investment without a readily determinable fair value. Federal Home Loan Bank (FHLB) Stock - The Company is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost and is recorded in "Other assets". Cash dividends are reported as income. Federal Reserve Bank (FRB) Stock - The Company is a member of its regional Federal Reserve Bank and is required to own stock based on its level of capital. FRB stock is carried at cost and is recorded in "Other assets". Cash dividends are reported as income. Loan Commitments and Related Financial Instruments - Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Stock-based Compensation - Restricted stock awards are the primary form of equity grant utilized by the Company. Compensation cost is based on the fair value of the award, which is the closing price of the Company's common stock on the date of the grant. Restricted stock awards issued by the Company typically have vesting periods with service conditions. Compensation cost is recognized as expense over the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period. Because of the insignificant amount of forfeitures the Company has experienced, forfeitures are recognized as they occur. Earnings Per Share Amounts - Basic Earnings Per Common Share is calculated by dividing net income, less income allocated to participating securities, by the weighted average number of common shares outstanding during the period, excluding unvested shares of restricted stock. For the Company, participating securities are comprised of unvested shares of restricted stock. Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. For the periods presented, the Company’s potentially dilutive common stock issuances related to unvested shares of restricted stock and stock option grants under the Company’s equity-based plans, as well as contingently issuable shares. In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows. As it relates to unvested shares of restricted stock, the number of shares added to the denominator is equal to the total number of weighted average unvested shares outstanding. As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities. As it relates to contingently issuable shares, the number of shares that are included in the calculation of dilutive securities is based on the weighted average number of shares that would have been issuable if the end of the reporting period had been the end of the contingency period. If any of the potentially dilutive common stock issuances have an anti-dilutive effect, the potentially dilutive common stock issuance is disregarded. Fair Value of Financial Instruments - Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument, as more fully described in Note 13. 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 financi |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | AcquisitionO |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The book values and approximate fair values of investment securities at December 31, 2020 and 2019 are summarized as follows: 2020 2019 Amortized Fair Unrealized Amortized Fair Unrealized ($ in thousands) Gains (Losses) Gains (Losses) Securities available for sale: Government-sponsored enterprise securities $ 70,016 70,206 371 (181) 20,000 20,009 17 (8) Mortgage-backed securities 1,318,998 1,337,706 20,832 (2,124) 758,491 767,285 9,463 (669) Corporate bonds 43,670 45,220 1,760 (210) 33,711 34,651 1,025 (85) Total available for sale 1,432,684 1,453,132 22,963 (2,515) 812,202 821,945 10,505 (762) Securities held to maturity: Mortgage-backed securities 29,959 30,900 941 — 41,423 41,542 125 (6) State and local governments 137,592 139,834 2,407 (165) 26,509 26,791 285 (3) Total held to maturity $ 167,551 170,734 3,348 (165) 67,932 68,333 410 (9) All of the Company’s mortgage-backed securities were issued by government-sponsored corporations, except for private mortgage-backed securities with a fair value of $1.0 million and $1.1 million as of December 31, 2020 and 2019, respectively. The following table presents information regarding securities with unrealized losses at December 31, 2020: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 29,812 181 — — 29,812 181 Mortgage-backed securities 497,992 1,957 6,168 167 504,160 2,124 Corporate bonds 3,956 45 835 165 4,791 210 State and local governments 23,310 165 — — 23,310 165 Total temporarily impaired securities $ 555,070 2,348 7,003 332 562,073 2,680 The following table presents information regarding securities with unrealized losses at December 31, 2019: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 4,992 8 — — 4,992 8 Mortgage-backed securities 77,274 293 50,851 382 128,125 675 Corporate bonds — — 915 85 915 85 State and local governments — — 934 3 934 3 Total temporarily impaired securities $ 82,266 301 52,700 470 134,966 771 In the above tables, all of the securities that were in an unrealized loss position at December 31, 2020 and 2019 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. The Company evaluated the collectability of each of these bonds and concluded that there was no other-than-temporary impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. As of December 31, 2020 and December 31, 2019, the Company's security portfolio held 69 and 54 securities that were in an unrealized loss position, respectively. The majority of unrealized losses are related to the Company's mortgage-backed securities. The book values and approximate fair values of investment securities at December 31, 2020, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Securities Held to Maturity ($ in thousands) Amortized Fair Amortized Fair Debt securities Due within one year $ — — $ 2,087 2,101 Due after one year but within five years 28,670 30,265 2,915 3,008 Due after five years but within ten years 74,016 74,400 3,418 3,536 Due after ten years 11,000 10,761 129,172 131,189 Mortgage-backed securities 1,318,998 1,337,706 29,959 30,900 Total securities $ 1,432,684 1,453,132 $ 167,551 170,734 At December 31, 2020 and 2019, investment securities with carrying values of $630,303,000 and $260,826,000, respectively, were pledged as collateral for public deposits. In 2020, the Company received proceeds from sales of securities of $219,697,000 and recorded $8,024,000 in gross gains from the sales. In 2019, the Company received proceeds from sales of securities of $39,797,000 and recorded $97,000 in gross gains from the sales. The Company sold no securities in 2018. Included in “other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Richmond (“FRB”) stock totaling $23,526,000 and $33,380,000 at December 31, 2020 and 2019, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $5,855,000 and $15,789,000 at December 31, 2020 and 2019, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The FRB stock had a cost and fair value of $17,671,000 and $17,591,000 at December 31, 2020 and 2019, respectively, and is a requirement for FRB member bank qualification. Periodically, both the FHLB and FRB recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end. The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at December 31, 2020 was approximately 1.62, which means the Company would receive approximately 20,051 Class A shares if the stock had converted on that date. This Class B stock does not have a readily determinable fair value and is carried at zero. If a readily determinable fair value becomes available for the Class B shares, or upon the conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings. |
Loans and Asset Quality Informa
Loans and Asset Quality Information | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Asset Quality Information | 90 days past due — — Total nonperforming loans 44,573 33,919 Foreclosed properties 2,424 3,873 Total nonperforming assets $ 46,997 37,792 Purchased credit impaired loans not included above (1) $ 8,591 12,664 (1) In the March 3, 2017 acquisition of Carolina Bank. and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired $19.3 million and $9.9 million, respectively, in PCI loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.7 million and $0.8 million in PCI loans at December 31, 2020 and 2019, respectively, that are contractually past due 90 days or more. At December 31, 2020 and 2019, the Company had $1.9 million and $0.6 million in residential mortgage loans in process of foreclosure, respectively. At December 31, 2020 and 2019, there were no commitments to lend additional funds to debtors whose loans were nonperforming. The following is a summary the Company’s nonaccrual loans by major categories. ($ in thousands) December 31, December 31, Commercial, financial, and agricultural $ 9,681 5,518 Real estate – construction, land development & other land loans 643 1,067 Real estate – mortgage – residential (1-4 family) first mortgages 6,048 7,552 Real estate – mortgage – home equity loans / lines of credit 1,333 1,797 Real estate – mortgage – commercial and other 17,191 8,820 Consumer loans 180 112 Total $ 35,076 24,866 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 1,464 1,101 — 9,681 770,166 782,412 Real estate – construction, land development & other land loans 572 — — 643 569,307 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 10,146 869 — 6,048 951,088 968,151 Real estate – mortgage – home equity loans / lines of credit 1,088 42 — 1,333 303,693 306,156 Real estate – mortgage – commercial and other 2,540 3,111 — 17,191 2,022,422 2,045,264 Consumer loans 180 36 — 180 53,521 53,917 Purchased credit impaired 328 112 719 — 7,432 8,591 Total $ 16,318 5,271 719 35,076 4,677,629 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2019. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 752 — — 5,518 497,788 504,058 Real estate – construction, land development & other land loans 37 152 — 1,067 529,444 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 10,858 5,056 — 7,552 1,076,205 1,099,671 Real estate – mortgage – home equity loans / lines of credit 770 300 — 1,797 334,832 337,699 Real estate – mortgage – commercial and other 4,257 — — 8,820 1,897,573 1,910,650 Consumer loans 344 137 — 112 55,490 56,083 Purchased credit impaired 218 38 762 — 11,646 12,664 Total $ 17,236 5,683 762 24,866 4,402,978 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2020 Beginning balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Charge-offs (5,608) (51) (478) (524) (968) (873) — (8,502) Recoveries 745 1,552 754 487 621 294 — 4,453 Provisions 11,626 1,878 3,940 1,285 15,012 1,085 213 35,039 Ending balance $ 11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 Ending balances as of December 31, 2020: Allowance for loan losses Individually evaluated for impairment $ 3,546 30 800 — 2,175 — — 6,551 Collectively evaluated for impairment $ 7,742 5,325 7,141 2,375 21,428 1,475 213 45,699 Purchased credit impaired $ 28 — 107 — — 3 — 138 Loans receivable as of December 31, 2020: Ending balance – total $ 782,549 570,672 972,378 306,256 2,049,203 53,955 — 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 Ending balances as of December 31, 2020: Loans Individually evaluated for impairment $ 7,700 677 9,303 15 18,582 4 — 36,281 Collectively evaluated for impairment $ 774,712 569,845 958,848 306,141 2,026,682 53,913 — 4,690,141 Purchased credit impaired $ 137 150 4,227 100 3,939 38 — 8,591 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2019. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2019 Beginning balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Charge-offs (2,473) (553) (657) (307) (1,556) (757) — (6,303) Recoveries 980 1,275 705 629 575 235 — 4,399 Provisions 3,157 (989) (1,413) (860) 1,936 542 (110) 2,263 Ending balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Ending balances as of December 31, 2019: Allowance for loan losses Individually evaluated for impairment $ 1,791 50 750 — 983 — — 3,574 Collectively evaluated for impairment $ 2,720 1,926 2,976 1,127 7,931 961 — 17,641 Purchased credit impaired $ 42 — 106 — 24 11 — 183 Loans receivable as of December 31, 2019: Ending balance – total $ 504,271 530,866 1,105,014 337,922 1,917,280 56,172 — 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 Ending balances as of December 31, 2019: Loans Individually evaluated for impairment $ 4,957 796 9,546 333 9,570 — — 25,202 Collectively evaluated for impairment $ 499,101 529,904 1,090,125 337,366 1,901,080 56,083 — 4,413,659 Purchased credit impaired $ 213 166 5,343 223 6,630 89 — 12,664 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018. ($ in thousands) Commercial, Real Estate – Real Estate Real Estate Real Estate Consumer loans Unallo- Total As of and for the year ended December 31, 2018 Beginning balance $ 3,111 2,816 6,147 1,827 6,475 950 1,972 23,298 Charge-offs (2,128) (158) (1,734) (711) (1,459) (781) — (6,971) Recoveries 1,195 4,097 833 364 1,503 309 — 8,301 Provisions 711 (4,512) (49) 185 1,464 474 (1,862) (3,589) Ending balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Ending balances as of December 31, 2018: Allowance for loan losses Individually evaluated for impairment $ 226 134 955 48 906 — — 2,269 Collectively evaluated for impairment $ 2,661 2,109 4,143 1,608 7,070 941 110 18,642 Purchased credit impaired $ 2 — 99 9 7 11 — 128 Loans receivable as of December 31, 2018: Ending balance – total $ 457,037 518,976 1,054,176 359,162 1,787,022 71,392 — 4,247,765 Unamortized net deferred loan (fees) costs 1,299 Total loans 4,249,064 Ending balances as of December 31, 2018: Loans Individually evaluated for impairment $ 696 1,345 12,391 296 9,525 — — 24,253 Collectively evaluated for impairment $ 456,111 517,453 1,035,532 358,522 1,767,361 71,140 — 4,206,119 Purchased credit impaired $ 230 178 6,253 344 10,136 252 — 17,393 The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2020. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 3,688 4,325 — 750 Real estate – mortgage – construction, land development & other land loans 554 694 — 308 Real estate – mortgage – residential (1-4 family) first mortgages 4,115 4,456 — 4,447 Real estate – mortgage –home equity loans / lines of credit 15 27 — 264 Real estate – mortgage –commercial and other 11,763 13,107 — 9,026 Consumer loans 4 4 — 1 Total impaired loans with no allowance $ 20,139 22,613 — 14,796 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,012 4,398 3,546 5,139 Real estate – mortgage – construction, land development & other land loans 123 131 30 502 Real estate – mortgage – residential (1-4 family) first mortgages 5,188 5,361 800 5,186 Real estate – mortgage –home equity loans / lines of credit — — — 21 Real estate – mortgage –commercial and other 6,819 7,552 2,175 5,786 Consumer loans — — — — Total impaired loans with allowance $ 16,142 17,442 6,551 16,634 Interest income recorded on impaired loans during the year ended December 31, 2020 was $1.1 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2019. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 16 19 — 74 Real estate – mortgage – construction, land development & other land loans 221 263 — 366 Real estate – mortgage – residential (1-4 family) first mortgages 4,300 4,539 — 4,415 Real estate – mortgage –home equity loans / lines of credit 333 357 — 147 Real estate – mortgage –commercial and other 2,643 3,328 — 3,240 Consumer loans — — — — Total impaired loans with no allowance $ 7,513 8,506 — 8,242 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,941 4,995 1,791 1,681 Real estate – mortgage – construction, land development & other land loans 575 575 50 586 Real estate – mortgage – residential (1-4 family) first mortgages 5,246 5,469 750 6,206 Real estate – mortgage –home equity loans / lines of credit — — — 55 Real estate – mortgage –commercial and other 6,927 7,914 983 5,136 Consumer loans — — — — Total impaired loans with allowance $ 17,689 18,953 3,574 13,664 Interest income recorded on impaired loans during the year ended December 31, 2019 was $1.3 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2018. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 310 310 — 957 Real estate – mortgage – construction, land development & other land loans 485 803 — 2,366 Real estate – mortgage – residential (1-4 family) first mortgages 4,626 4,948 — 4,804 Real estate – mortgage –home equity loans / lines of credit 22 31 — 91 Real estate – mortgage –commercial and other 3,475 4,237 — 3,670 Consumer loans — — — — Total impaired loans with no allowance $ 8,918 10,329 — 11,888 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 386 387 226 422 Real estate – mortgage – construction, land development & other land loans 860 864 134 385 Real estate – mortgage – residential (1-4 family) first mortgages 7,765 7,904 955 8,963 Real estate – mortgage –home equity loans / lines of credit 274 275 48 184 Real estate – mortgage –commercial and other 6,050 6,054 906 5,911 Consumer loans — — — 2 Total impaired loans with allowance $ 15,335 15,484 2,269 15,867 Interest income recorded on impaired loans during the year ended December 31, 2018 was $1.5 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The Company tracks credit quality based on its internal risk ratings. Upon origination a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type. The following describes the Company’s internal risk grades in ascending order of likelihood of loss: 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 available and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. P Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. Special Mention: 6 Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. Classified: 7 An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. 8 Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. 9 Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. F Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 762,091 9,553 1,087 9,681 782,412 Real estate – construction, land development & other land loans 560,845 7,877 1,157 643 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 943,455 7,609 11,039 6,048 968,151 Real estate – mortgage – home equity loans / lines of credit 297,795 1,468 5,560 1,333 306,156 Real estate – mortgage – commercial and other 1,988,684 34,588 4,801 17,191 2,045,264 Consumer loans 53,488 80 169 180 53,917 Purchased credit impaired 6,901 85 1,605 — 8,591 Total $ 4,613,259 61,260 25,418 35,076 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans 4,731,315 The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2019. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 486,081 7,998 4,461 5,518 504,058 Real estate – construction, land development & other land loans 522,767 4,075 2,791 1,067 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 1,063,735 13,187 15,197 7,552 1,099,671 Real estate – mortgage – home equity loans / lines of credit 328,903 1,258 5,741 1,797 337,699 Real estate – mortgage – commercial and other 1,873,594 20,800 7,436 8,820 1,910,650 Consumer loans 55,203 413 355 112 56,083 Purchased credit impaired 8,098 2,590 1,976 — 12,664 Total $ 4,338,381 50,321 37,957 24,866 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans 4,453,466 Troubled Debt Restructurings The restructuring of a loan is considered a “troubled debt restructuring” ("TDR") if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses. As previously discussed, under the CARES Act and banking regulator guidance, which the Company has applied, modifications deemed to be COVID-19-related are not considered a TDR if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. In December 2020, this provision was extended to December 31, 2021. The Company's COVID-19 payment deferral program began in late-March 2020, with the payment deferrals limited to 90 days and deferrals were granted to substantially all borrowers who requested it. As the initial 90 day deferrals began to expire, the Company approved subsequent deferral requests of another 90 days based on the circumstances of each borrower. Most of the Company's borrowers who were granted payment deferrals began making payments again in the second half of 2020. As of December 31, 2020, the Company had payment deferrals for 38 loans with an aggregate loan balance of $16.6 million, which are not included in the TDR's disclosed in this report. The Company continues to accrue interest on these loans during the deferral period. The vast majority of the Company’s TDRs modified during the years ended December 31, 2020, 2019, and 2018 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness. All loans classified as TDRs are considered to be impaired and are evaluated as such for determination of the allowance for loan losses. The Company’s TDRs can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that are nonaccrual are reported within the nonaccrual loan totals presented previously. The following table presents information related to loans modified in a TDR during the year ended December 31, 2020. ($ in thousands) For the year ended December 31, 2020 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 143 $ 143 Real estate – construction, land development & other land loans 1 67 67 Real estate – mortgage – residential (1-4 family) first mortgages 2 75 78 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans 1 4 4 TDRs – Nonaccrual Commercial, financial, and agricultural 1 72 72 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 5 5,977 5,977 Consumer loans — — — Total TDRs arising during period 12 $ 6,338 $ 6,341 The following table presents information related to loans modified in a TDR during the year ended December 31, 2019. ($ in thousands) For the year ended December 31, 2019 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 395 $ 395 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 3 387 391 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 1 274 274 Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 1,056 $ 1,060 The following table presents information related to loans modified in a TDR during the year ended December 31, 2018. ($ in thousands) For the year ended December 31, 2018 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 2 254 273 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans 1 61 61 Real estate – mortgage – residential (1-4 family) first mortgages 3 340 350 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 655 $ 684 Accruing TDRs that were modified in the previous 12 months and that defaulted during the years ended December 31, 2020, 2019, and 2018 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate. ($ in thousands) For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Number of Recorded Number of Recorded Number of Recorded Accruing TDRs that subsequently defaulted Real estate – mortgage – residential (1-4 family first mortgages) — $ — 1 $ 93 1 $ 60 Real estate – mortgage – commercial and other 1 274 — — 3 1,333 Total accruing TDRs that subsequently defaulted 1 $ 274 1 $ 93 4 $ 1,393 " id="sjs-B4" xml:space="preserve">Loans and Asset Quality Information The following is a summary of the major categories of total loans outstanding: ($ in thousands) December 31, 2020 December 31, 2019 Amount Percentage Amount Percentage All loans: Commercial, financial, and agricultural $ 782,549 17 % $ 504,271 11 % Real estate – construction, land development & other land loans 570,672 12 % 530,866 12 % Real estate – mortgage – residential (1-4 family) first mortgages 972,378 21 % 1,105,014 25 % Real estate – mortgage – home equity loans / lines of credit 306,256 6 % 337,922 8 % Real estate – mortgage – commercial and other 2,049,203 43 % 1,917,280 43 % Consumer loans 53,955 1 % 56,172 1 % Subtotal 4,735,013 100 % 4,451,525 100 % Unamortized net deferred loan costs (fees) (3,698) 1,941 Total loans $ 4,731,315 $ 4,453,466 Included within "Commercial, financial and agricultural" in the table above are PPP loans totaling $240.5 million. PPP loans are fully guaranteed by the SBA. Included in unamortized net deferred loan fees are $6.0 million in unamortized net deferred loan fees associated with PPP loans. These fees are being amortized under the effective interest method over the terms of the loans. Accelerated amortization is recorded in the periods in which principal amounts are forgiven in accordance with the terms of the program. Because of their fully guaranteed nature, the Company has no allocation of allowance for loan losses established for these loans. Also included in the table above are various non-PPP SBA loans, with additional information on these loans presented in the table below. ($ in thousands) December 31, December 31, Guaranteed portions of non-PPP SBA Loans included in table above $ 33,959 54,400 Unguaranteed portions of SBA Loans included in table above 135,703 110,782 Total non-PPP SBA loans included in the table above $ 169,662 165,182 Sold portions of SBA loans with servicing retained - not included in table above $ 395,398 316,730 At December 31, 2020 and 2019, there was a remaining unaccreted discount on the retained portion of sold SBA loans amounting to $7.3 million and $7.1 million, respectively. The discounts are amortized as yield adjustments over the respective lives of the loans, so long as the loans perform. Loans in the amount of $4.0 billion were pledged as collateral for certain borrowings at both December 31, 2020 and December 31, 2019, respectively (see Note 9). Included in the table above are credit card balances outstanding totaling $33.2 million and $30.9 million at December 31, 2020 and 2019, respectively. The loans above also include loans to executive officers and directors serving the Company at December 31, 2020 and to their associates, totaling approximately $3.6 million and $5.3 million at December 31, 2020 and 2019, respectively. New loans and advances on those loans in 2020 totaled $2.2 million and repayments amounted to $3.9 million. Management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features. The Company has several acquired loan portfolios as a result of merger and acquisition transactions. In these transactions, the Company recorded loans at their fair value as required by applicable accounting guidance. Included in these loan portfolios were purchased credit impaired (“PCI”) loans, which are loans for which it is probable at acquisition date that all contractually required payments will not be collected. The remaining loans were considered to be purchased non-impaired loans and their related fair value discount or premium is being recognized as an adjustment to yield over the remaining life of each loan. As of December 31, 2020 , 2019 and 2018, there was a remaining accretable discount of $7.9 million , $11.1 million, and $15.0 million, respectively, related to purchased non-impaired loans. The discounts are amortized as yield adjustments over the respective lives of the loans, so long as the loans perform. The following table presents changes in the carrying value of PCI loans. ($ in thousands) Purchased Credit Impaired Loans For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, Balance at beginning of period $ 12,664 17,393 23,165 Change due to payments received and accretion (4,087) (4,863) (5,799) Change due to loan charge-offs (13) (11) (4) Transfers to foreclosed real estate — — (10) Other 27 145 41 Balance at end of period $ 8,591 12,664 17,393 The following table presents changes in the accretable yield for PCI loans. ($ in thousands) Accretable Yield for PCI loans For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, Balance at beginning of period $ 4,149 4,750 4,688 Accretion (1,119) (1,486) (2,050) Reclassification from (to) nonaccretable difference 413 617 849 Other, net (545) 268 1,263 Balance at end of period $ 2,898 4,149 4,750 During 2020, the Company received $500,000 in payments that exceeded the carrying amount of the related PCI loans, of which $397,000 was recognized as loan discount accretion income, $89,000 was recorded as additional loan interest income, and $14,000 was recorded as a recovery. During 2019, the Company received $406,000 in payments that exceeded the carrying amount of the related PCI loans, of which $348,000 was recognized as loan discount accretion income and $58,000 was recorded as additional loan interest income. During 2018, the Company received $772,000 in payments that exceeded the carrying amount of the related PCI loans, of which $493,000 was recognized as loan discount accretion income and $279,000 was recorded as additional loan interest income. Nonperforming assets are defined as nonaccrual loans, troubled debt restructurings, loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows: ASSET QUALITY DATA ($ in thousands) December 31, December 31, Nonperforming assets Nonaccrual loans $ 35,076 24,866 Restructured loans - accruing 9,497 9,053 Accruing loans > 90 days past due — — Total nonperforming loans 44,573 33,919 Foreclosed properties 2,424 3,873 Total nonperforming assets $ 46,997 37,792 Purchased credit impaired loans not included above (1) $ 8,591 12,664 (1) In the March 3, 2017 acquisition of Carolina Bank. and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired $19.3 million and $9.9 million, respectively, in PCI loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.7 million and $0.8 million in PCI loans at December 31, 2020 and 2019, respectively, that are contractually past due 90 days or more. At December 31, 2020 and 2019, the Company had $1.9 million and $0.6 million in residential mortgage loans in process of foreclosure, respectively. At December 31, 2020 and 2019, there were no commitments to lend additional funds to debtors whose loans were nonperforming. The following is a summary the Company’s nonaccrual loans by major categories. ($ in thousands) December 31, December 31, Commercial, financial, and agricultural $ 9,681 5,518 Real estate – construction, land development & other land loans 643 1,067 Real estate – mortgage – residential (1-4 family) first mortgages 6,048 7,552 Real estate – mortgage – home equity loans / lines of credit 1,333 1,797 Real estate – mortgage – commercial and other 17,191 8,820 Consumer loans 180 112 Total $ 35,076 24,866 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 1,464 1,101 — 9,681 770,166 782,412 Real estate – construction, land development & other land loans 572 — — 643 569,307 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 10,146 869 — 6,048 951,088 968,151 Real estate – mortgage – home equity loans / lines of credit 1,088 42 — 1,333 303,693 306,156 Real estate – mortgage – commercial and other 2,540 3,111 — 17,191 2,022,422 2,045,264 Consumer loans 180 36 — 180 53,521 53,917 Purchased credit impaired 328 112 719 — 7,432 8,591 Total $ 16,318 5,271 719 35,076 4,677,629 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2019. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 752 — — 5,518 497,788 504,058 Real estate – construction, land development & other land loans 37 152 — 1,067 529,444 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 10,858 5,056 — 7,552 1,076,205 1,099,671 Real estate – mortgage – home equity loans / lines of credit 770 300 — 1,797 334,832 337,699 Real estate – mortgage – commercial and other 4,257 — — 8,820 1,897,573 1,910,650 Consumer loans 344 137 — 112 55,490 56,083 Purchased credit impaired 218 38 762 — 11,646 12,664 Total $ 17,236 5,683 762 24,866 4,402,978 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2020 Beginning balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Charge-offs (5,608) (51) (478) (524) (968) (873) — (8,502) Recoveries 745 1,552 754 487 621 294 — 4,453 Provisions 11,626 1,878 3,940 1,285 15,012 1,085 213 35,039 Ending balance $ 11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 Ending balances as of December 31, 2020: Allowance for loan losses Individually evaluated for impairment $ 3,546 30 800 — 2,175 — — 6,551 Collectively evaluated for impairment $ 7,742 5,325 7,141 2,375 21,428 1,475 213 45,699 Purchased credit impaired $ 28 — 107 — — 3 — 138 Loans receivable as of December 31, 2020: Ending balance – total $ 782,549 570,672 972,378 306,256 2,049,203 53,955 — 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 Ending balances as of December 31, 2020: Loans Individually evaluated for impairment $ 7,700 677 9,303 15 18,582 4 — 36,281 Collectively evaluated for impairment $ 774,712 569,845 958,848 306,141 2,026,682 53,913 — 4,690,141 Purchased credit impaired $ 137 150 4,227 100 3,939 38 — 8,591 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2019. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2019 Beginning balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Charge-offs (2,473) (553) (657) (307) (1,556) (757) — (6,303) Recoveries 980 1,275 705 629 575 235 — 4,399 Provisions 3,157 (989) (1,413) (860) 1,936 542 (110) 2,263 Ending balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Ending balances as of December 31, 2019: Allowance for loan losses Individually evaluated for impairment $ 1,791 50 750 — 983 — — 3,574 Collectively evaluated for impairment $ 2,720 1,926 2,976 1,127 7,931 961 — 17,641 Purchased credit impaired $ 42 — 106 — 24 11 — 183 Loans receivable as of December 31, 2019: Ending balance – total $ 504,271 530,866 1,105,014 337,922 1,917,280 56,172 — 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 Ending balances as of December 31, 2019: Loans Individually evaluated for impairment $ 4,957 796 9,546 333 9,570 — — 25,202 Collectively evaluated for impairment $ 499,101 529,904 1,090,125 337,366 1,901,080 56,083 — 4,413,659 Purchased credit impaired $ 213 166 5,343 223 6,630 89 — 12,664 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018. ($ in thousands) Commercial, Real Estate – Real Estate Real Estate Real Estate Consumer loans Unallo- Total As of and for the year ended December 31, 2018 Beginning balance $ 3,111 2,816 6,147 1,827 6,475 950 1,972 23,298 Charge-offs (2,128) (158) (1,734) (711) (1,459) (781) — (6,971) Recoveries 1,195 4,097 833 364 1,503 309 — 8,301 Provisions 711 (4,512) (49) 185 1,464 474 (1,862) (3,589) Ending balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Ending balances as of December 31, 2018: Allowance for loan losses Individually evaluated for impairment $ 226 134 955 48 906 — — 2,269 Collectively evaluated for impairment $ 2,661 2,109 4,143 1,608 7,070 941 110 18,642 Purchased credit impaired $ 2 — 99 9 7 11 — 128 Loans receivable as of December 31, 2018: Ending balance – total $ 457,037 518,976 1,054,176 359,162 1,787,022 71,392 — 4,247,765 Unamortized net deferred loan (fees) costs 1,299 Total loans 4,249,064 Ending balances as of December 31, 2018: Loans Individually evaluated for impairment $ 696 1,345 12,391 296 9,525 — — 24,253 Collectively evaluated for impairment $ 456,111 517,453 1,035,532 358,522 1,767,361 71,140 — 4,206,119 Purchased credit impaired $ 230 178 6,253 344 10,136 252 — 17,393 The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2020. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 3,688 4,325 — 750 Real estate – mortgage – construction, land development & other land loans 554 694 — 308 Real estate – mortgage – residential (1-4 family) first mortgages 4,115 4,456 — 4,447 Real estate – mortgage –home equity loans / lines of credit 15 27 — 264 Real estate – mortgage –commercial and other 11,763 13,107 — 9,026 Consumer loans 4 4 — 1 Total impaired loans with no allowance $ 20,139 22,613 — 14,796 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,012 4,398 3,546 5,139 Real estate – mortgage – construction, land development & other land loans 123 131 30 502 Real estate – mortgage – residential (1-4 family) first mortgages 5,188 5,361 800 5,186 Real estate – mortgage –home equity loans / lines of credit — — — 21 Real estate – mortgage –commercial and other 6,819 7,552 2,175 5,786 Consumer loans — — — — Total impaired loans with allowance $ 16,142 17,442 6,551 16,634 Interest income recorded on impaired loans during the year ended December 31, 2020 was $1.1 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2019. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 16 19 — 74 Real estate – mortgage – construction, land development & other land loans 221 263 — 366 Real estate – mortgage – residential (1-4 family) first mortgages 4,300 4,539 — 4,415 Real estate – mortgage –home equity loans / lines of credit 333 357 — 147 Real estate – mortgage –commercial and other 2,643 3,328 — 3,240 Consumer loans — — — — Total impaired loans with no allowance $ 7,513 8,506 — 8,242 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,941 4,995 1,791 1,681 Real estate – mortgage – construction, land development & other land loans 575 575 50 586 Real estate – mortgage – residential (1-4 family) first mortgages 5,246 5,469 750 6,206 Real estate – mortgage –home equity loans / lines of credit — — — 55 Real estate – mortgage –commercial and other 6,927 7,914 983 5,136 Consumer loans — — — — Total impaired loans with allowance $ 17,689 18,953 3,574 13,664 Interest income recorded on impaired loans during the year ended December 31, 2019 was $1.3 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2018. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 310 310 — 957 Real estate – mortgage – construction, land development & other land loans 485 803 — 2,366 Real estate – mortgage – residential (1-4 family) first mortgages 4,626 4,948 — 4,804 Real estate – mortgage –home equity loans / lines of credit 22 31 — 91 Real estate – mortgage –commercial and other 3,475 4,237 — 3,670 Consumer loans — — — — Total impaired loans with no allowance $ 8,918 10,329 — 11,888 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 386 387 226 422 Real estate – mortgage – construction, land development & other land loans 860 864 134 385 Real estate – mortgage – residential (1-4 family) first mortgages 7,765 7,904 955 8,963 Real estate – mortgage –home equity loans / lines of credit 274 275 48 184 Real estate – mortgage –commercial and other 6,050 6,054 906 5,911 Consumer loans — — — 2 Total impaired loans with allowance $ 15,335 15,484 2,269 15,867 Interest income recorded on impaired loans during the year ended December 31, 2018 was $1.5 million, and reflects interest income recorded on nonaccrual loans prior to them being placed on nonaccrual status and interest income recorded on accruing TDRs. The Company tracks credit quality based on its internal risk ratings. Upon origination a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type. The following describes the Company’s internal risk grades in ascending order of likelihood of loss: 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 available and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. P Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. Special Mention: 6 Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. Classified: 7 An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. 8 Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. 9 Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. F Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 762,091 9,553 1,087 9,681 782,412 Real estate – construction, land development & other land loans 560,845 7,877 1,157 643 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 943,455 7,609 11,039 6,048 968,151 Real estate – mortgage – home equity loans / lines of credit 297,795 1,468 5,560 1,333 306,156 Real estate – mortgage – commercial and other 1,988,684 34,588 4,801 17,191 2,045,264 Consumer loans 53,488 80 169 180 53,917 Purchased credit impaired 6,901 85 1,605 — 8,591 Total $ 4,613,259 61,260 25,418 35,076 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans 4,731,315 The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2019. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 486,081 7,998 4,461 5,518 504,058 Real estate – construction, land development & other land loans 522,767 4,075 2,791 1,067 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 1,063,735 13,187 15,197 7,552 1,099,671 Real estate – mortgage – home equity loans / lines of credit 328,903 1,258 5,741 1,797 337,699 Real estate – mortgage – commercial and other 1,873,594 20,800 7,436 8,820 1,910,650 Consumer loans 55,203 413 355 112 56,083 Purchased credit impaired 8,098 2,590 1,976 — 12,664 Total $ 4,338,381 50,321 37,957 24,866 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans 4,453,466 Troubled Debt Restructurings The restructuring of a loan is considered a “troubled debt restructuring” ("TDR") if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses. As previously discussed, under the CARES Act and banking regulator guidance, which the Company has applied, modifications deemed to be COVID-19-related are not considered a TDR if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. In December 2020, this provision was extended to December 31, 2021. The Company's COVID-19 payment deferral program began in late-March 2020, with the payment deferrals limited to 90 days and deferrals were granted to substantially all borrowers who requested it. As the initial 90 day deferrals began to expire, the Company approved subsequent deferral requests of another 90 days based on the circumstances of each borrower. Most of the Company's borrowers who were granted payment deferrals began making payments again in the second half of 2020. As of December 31, 2020, the Company had payment deferrals for 38 loans with an aggregate loan balance of $16.6 million, which are not included in the TDR's disclosed in this report. The Company continues to accrue interest on these loans during the deferral period. The vast majority of the Company’s TDRs modified during the years ended December 31, 2020, 2019, and 2018 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness. All loans classified as TDRs are considered to be impaired and are evaluated as such for determination of the allowance for loan losses. The Company’s TDRs can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that are nonaccrual are reported within the nonaccrual loan totals presented previously. The following table presents information related to loans modified in a TDR during the year ended December 31, 2020. ($ in thousands) For the year ended December 31, 2020 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 143 $ 143 Real estate – construction, land development & other land loans 1 67 67 Real estate – mortgage – residential (1-4 family) first mortgages 2 75 78 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans 1 4 4 TDRs – Nonaccrual Commercial, financial, and agricultural 1 72 72 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 5 5,977 5,977 Consumer loans — — — Total TDRs arising during period 12 $ 6,338 $ 6,341 The following table presents information related to loans modified in a TDR during the year ended December 31, 2019. ($ in thousands) For the year ended December 31, 2019 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 395 $ 395 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 3 387 391 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 1 274 274 Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 1,056 $ 1,060 The following table presents information related to loans modified in a TDR during the year ended December 31, 2018. ($ in thousands) For the year ended December 31, 2018 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 2 254 273 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans 1 61 61 Real estate – mortgage – residential (1-4 family) first mortgages 3 340 350 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 655 $ 684 Accruing TDRs that were modified in the previous 12 months and that defaulted during the years ended December 31, 2020, 2019, and 2018 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate. ($ in thousands) For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Number of Recorded Number of Recorded Number of Recorded Accruing TDRs that subsequently defaulted Real estate – mortgage – residential (1-4 family first mortgages) — $ — 1 $ 93 1 $ 60 Real estate – mortgage – commercial and other 1 274 — — 3 1,333 Total accruing TDRs that subsequently defaulted 1 $ 274 1 $ 93 4 $ 1,393 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment at December 31, 2020 and 2019 consisted of the following: ($ in thousands) 2020 2019 Land $ 38,584 38,164 Buildings 103,232 93,738 Furniture and equipment 30,097 33,110 Leasehold improvements 3,054 2,195 Total cost 174,967 167,207 Less accumulated depreciation and amortization (54,465) (52,348) Total premises and equipment $ 120,502 114,859 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and December 31, 2019 and the carrying amount of unamortizable intangible assets as of those same dates. December 31, 2020 December 31, 2019 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amortizable intangible assets: Customer lists $ 7,613 2,814 6,013 2,185 Core deposit intangibles 28,440 23,832 28,440 20,610 SBA servicing asset 9,976 4,188 7,776 2,393 Other 1,403 1,232 1,303 1,127 Total $ 47,432 32,066 43,532 26,315 Unamortizable intangible assets: Goodwill $ 239,272 234,368 SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continue to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees." As derived from the table above, the Company had a SBA servicing asset at December 31, 2020 with a remaining book value of $5,788,000. The Company recorded $2,200,000 and $2,304,000 in servicing assets associated with the guaranteed portion of SBA loans sold during 2020 and 2019, respectively. During 2020, 2019, and 2018, the Company recorded $1,795,000, $1,340,000, and $846,000, respectively, in related amortization expense. At December 31, 2020 and 2019, the Company serviced for others SBA loans totaling $395.4 million and $316.7 million, respectively. In connection with the September 1, 2020 acquisition of a business financing company, the Company recorded goodwill of $4.9 million and $1.6 million in other amortizable intangible assets, each of which is deductible for tax purposes over 15 years. See Note 2 for additional discussion of this acquisition. Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $3,956,000, $4,858,000 and $5,917,000 for the years ended December 31, 2020, 2019 and 2018, respectively. Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring on October 31 of each year – see Note 1 for additional discussion. The annual reviews in October 2018 and October 2019, which were primarily of a qualitative nature, indicated that none of the Company's goodwill was impaired. The onset of the COVID-19 pandemic in March 2020 resulted in economic turmoil and market volatility that resulted in a substantial decrease in the Company's stock price and market capitalization. Management believed such decreases were triggering indicators requiring indicating the need for interim analysis. Accordingly, during each quarter of 2020, the Company reviewed its goodwill for impairment. For the first and third quarters of 2020, the Company performed an interim step-one goodwill impairment quantitative analysis. For the second quarter of 2020 and the annual fourth quarter 2020 review, management reviewed its goodwill for impairment primarily qualitatively by reviewing the factors and assumptions used in the analysis for the preceding quarter. The conclusion of each 2020 review was that none of the Company's goodwill was impaired. The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets for each of the five calendar years ending December 31, 2025 and the estimated amount amortizable thereafter. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortizable intangible assets. ($ in thousands) Estimated 2021 $ 3,272 2022 2,367 2023 1,386 2024 741 2025 562 Thereafter 1,250 Total $ 9,578 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31, 2020, 2019, and 2018 are as follows: ($ in thousands) 2020 2019 2018 Current - Federal $ 27,799 19,920 19,188 - State 3,909 2,499 3,187 Deferred - Federal (8,893) 1,572 1,658 - State (1,161) 239 156 Total $ 21,654 24,230 24,189 The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2020 and 2019 are presented below: ($ in thousands) 2020 2019 Deferred tax assets: Allowance for loan losses $ 12,031 4,916 Excess book over tax pension plan cost 367 241 Deferred compensation 257 293 Federal & state net operating loss and tax credit carryforwards 282 376 Accruals, book versus tax 3,232 2,833 Pension liability adjustments 418 710 Foreclosed real estate 123 87 Basis differences in assets acquired in FDIC transactions 647 416 Equity compensation 661 370 Partnership investments 258 254 Leases 120 — SBA servicing asset 358 400 All other 3 3 Gross deferred tax assets 18,757 10,899 Less: Valuation allowance (14) (40) Net deferred tax assets 18,743 10,859 Deferred tax liabilities: Loan fees (1,011) (2,428) Depreciable basis of fixed assets (4,809) (4,995) Amortizable basis of intangible assets (7,965) (7,844) FHLB stock dividends (236) (472) Trust preferred securities (473) (548) Purchase accounting adjustments — (84) Unrealized gain on securities available for sale (4,699) (2,239) Gross deferred tax liabilities (19,193) (18,610) Net deferred tax liability - included in other liabilities $ (450) (7,751) A portion of the annual change in the net deferred tax asset relates to unrealized gains and losses on securities available for sale. The related 2020 and 2019 deferred tax expense (benefit) of approximately $2,460,000 and $5,135,000 respectively, has been recorded directly to shareholders’ equity. Additionally, a portion of the annual change in the net deferred tax asset relates to pension adjustments. The related 2020 and 2019 deferred tax expense (benefit) of $292,000 and $42,000 respectively, has been recorded directly to shareholders’ equity. The balance of the 2020 increase in the net deferred tax liability of $10,054,000 is reflected as deferred income tax expense, and the balance of the 2019 increase in the net deferred tax liability of $1,811,000 is reflected as deferred income tax expense in the consolidated statement of income. The valuation allowances for 2020 and 2019 relate primarily to state net operating loss carryforwards. It is management’s belief that the realization of the remaining net deferred tax assets is more likely than not. The Company adjusted its net deferred income tax asset as a result of reductions in the North Carolina income tax rate, which reduced the state income tax rate to 2.5% effective January 1, 2019. The Company had no significant uncertain tax positions, and thus no reserve for uncertain tax positions has been recorded. Additionally, the Company determined that it has no material unrecognized tax benefits that if recognized would affect the effective tax rate. The Company’s general policy is to record tax penalties and interest as a component of “other operating expenses”. The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The Company’s tax returns are subject to income tax audit by federal and state agencies beginning with the year 2017. There are no indications of any material adjustments relating to any examination currently being conducted by any taxing authority. Retained earnings at December 31, 2020 and 2019 include approximately $6,869,000 representing pre-1988 tax bad debt reserve base year amounts for which no deferred income tax liability has been provided since these reserves are not expected to reverse or may never reverse. Circumstances that would require an accrual of a portion or all of this unrecorded tax liability are a reduction in qualifying loan levels relative to the end of 1987, failure to meet the definition of a bank, dividend payments in excess of accumulated tax earnings and profits, or other distributions in dissolution, liquidation or redemption of the Bank’s stock. The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2020 and December 31, 2019 and December 31, 2018, to the income tax provision reported in the financial statements. ($ in thousands) 2020 2019 2018 Tax provision at statutory rate $ 21,657 24,418 23,830 Increase (decrease) in income taxes resulting from: Tax-exempt interest income (1,050) (1,186) (1,117) Low income housing tax credits (772) (756) (698) Bank-owned life insurance income (532) (538) (532) Non-deductible interest expense 23 43 27 State income taxes, net of federal benefit 2,117 2,178 2,639 Change in valuation allowance (20) 4 (8) Impact of tax reform — (73) — Other, net 231 140 48 Total $ 21,654 21654000 $ 24,230 $ 24,189 |
Time Deposits and Related Party
Time Deposits and Related Party Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Time Deposits and Related Party Deposits | Time Deposits and Related Party Deposits At December 31, 2020, the scheduled maturities of time deposits were as follows: ($ in thousands) 2021 $ 681,719 2022 63,423 2023 21,070 2024 8,217 2025 15,829 Thereafter 674 $ 790,932 Deposits received from executive officers and directors and their associates totaled approximately $4.4 million and $1.3 million at December 31, 2020 and 2019, respectively. Deposit overdrafts of approximately $0.5 million and $0.7 million at December 31, 2020 and 2019 are included within "Loans" on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, the Company held $375.7 million and $442.2 million, respectively, in time deposits of $250,000 or more (which is the current FDIC insurance limit for insured deposits as of December 31, 2020). Included in these deposits were brokered deposits of $20.2 million and $86.1 million at December 31, 2020 and 2019, respectively. |
Borrowings and Borrowings Avail
Borrowings and Borrowings Availability | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings and Borrowings Availability | Borrowings and Borrowings Availability The following tables present information regarding the Company’s outstanding borrowings at December 31, 2020 and 2019 - dollars are in thousands: Description – 2020 Due date Call Feature 2020 Amount Interest Rate FHLB Principal Reducing Credit 7/24/2023 None 124 1.00% fixed FHLB Principal Reducing Credit 12/22/2023 None 991 1.25% fixed FHLB Principal Reducing Credit 1/15/2026 None 5,500 1.98% fixed FHLB Principal Reducing Credit 6/26/2028 None 235 0.25% fixed FHLB Principal Reducing Credit 7/17/2028 None 49 0.00% fixed FHLB Principal Reducing Credit 8/18/2028 None 174 1.00% fixed FHLB Principal Reducing Credit 8/22/2028 None 174 1.00% fixed FHLB Principal Reducing Credit 12/20/2028 None 355 0.50% fixed Other Borrowing 4/7/2022 None 103 1.00% fixed Trust Preferred Securities 1/23/2034 Quarterly by Company 20,620 2.91% at 12/31/2020 Trust Preferred Securities 6/15/2036 Quarterly by Company 25,774 1.61% at 12/31/2020 Trust Preferred Securities 1/7/2035 Quarterly by Company 10,310 2.24% at 12/31/2020 Total borrowings / weighted average rate as of December 31, 2020 $ 64,409 2.22% Unamortized discount on acquired borrowings (2,580) Total borrowings $ 61,829 Description – 2019 Due date Call Feature 2019 Amount Interest Rate FHLB Term Note 1/30/2020 None $ 100,000 1.70% fixed FHLB Term Note 1/31/2020 None 68,000 1.70% fixed FHLB Term Note 1/31/2020 None 30,000 1.70% fixed FHLB Term Note 5/29/2020 None 40,000 1.62% fixed FHLB Principal Reducing Credit 7/24/2023 None 168 1.00% fixed FHLB Principal Reducing Credit 12/22/2023 None 1,029 1.25% fixed FHLB Principal Reducing Credit 1/15/2026 None 6,500 1.98% fixed FHLB Principal Reducing Credit 6/26/2028 None 245 0.25% fixed FHLB Principal Reducing Credit 7/17/2028 None 55 0.00% fixed FHLB Principal Reducing Credit 8/18/2028 None 181 1.00% fixed FHLB Principal Reducing Credit 8/22/2028 None 181 1.00% fixed FHLB Principal Reducing Credit 12/20/2028 None 367 0.50% fixed Trust Preferred Securities 1/23/2034 Quarterly by Company 20,620 4.64% at 12/31/2019 Trust Preferred Securities 6/15/2036 Quarterly by Company 25,774 3.28% at 12/31/2019 Trust Preferred Securities 1/7/2035 Quarterly by Company 10,310 3.99% at 12/31/2019 Total borrowings / weighted average rate as of December 31, 2019 $ 303,430 2.68% Unamortized discount on acquired borrowings (2,759) Total borrowings $ 300,671 All outstanding FHLB borrowings may be accelerated immediately by the FHLB in certain circumstances, including material adverse changes in the condition of the Company or if the Company’s qualifying collateral amounts to less than that required under the terms of the FHLB borrowing agreement. In the above table for December 31, 2019, borrowings of $253.0 million at December 31, 2019 were considered short-term as their original maturity terms were for less than 3 months. There were no short-term borrowings at December 31, 2020. In the above tables, the $20.6 million in borrowings due on January 23, 2034 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trusts II and III ($10.3 million by each trust), which are unconsolidated subsidiaries of the Company, on December 19, 2003 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities became callable by the Company at par on any quarterly interest payment date beginning on January 23, 2009. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.70%. In the above tables, the $25.8 million in borrowings due on June 15, 2036 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trust IV, an unconsolidated subsidiary of the Company, on April 13, 2006 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities became callable by the Company at par on any quarterly interest payment date beginning on June 15, 2011. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 1.39%. In the above tables, the $10.3 million in borrowings due on January 7, 2035 relate to borrowings structured as trust preferred capital securities that were issued by Carolina Capital Trust, an unconsolidated subsidiary of the Company. The Company acquired Carolina Bank Holdings, Inc. and its subsidiary, Carolina Capital Trust, on March 3, 2017. These unsecured debt securities qualify as capital for regulatory capital adequacy requirements and became callable by the Company at par on any quarterly interest payment date beginning on January 7, 2010. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.00%. At December 31, 2020, the Company had three sources of readily available borrowing capacity – 1) an approximately $1.02 billion line of credit with the FHLB, of which $8 million was outstanding at December 31, 2020 and $247 million was outstanding at December 31, 2019, 2) a $100 million federal funds line of credit with a correspondent bank, of which none was outstanding at December 31, 2020 or 2019, and 3) an approximately $134 million line of credit through the Federal Reserve Bank of Richmond’s (FRB) discount window, of which none was outstanding at December 31, 2020 or 2019. The Company’s line of credit with the FHLB totaling approximately $1.02 billion can be structured as either short-term or long-term borrowings, depending on the particular funding or liquidity needs and is secured by the Company’s FHLB stock and a blanket lien on most of its real estate loan portfolio. The Company’s correspondent bank relationship allows the Company to purchase up to $100 million in federal funds on an overnight, unsecured basis (federal funds purchased). The Company had no borrowings outstanding under this line at December 31, 2020 or 2019. The Company has a line of credit with the FRB discount window. This line is secured by a blanket lien on a portion of the Company’s commercial and consumer loan portfolio (excluding real estate). Based on the collateral owned by the Company as of December 31, 2020, the available line of credit was approximately $134 million. The Company had no borrowings outstanding under this line of credit at December 31, 2020 or 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Leases | Leases The Company enters into leases in the normal course of business. As of December 31, 2020, the Company leased nine branch offices for which the land and buildings are leased and eight branch offices for which the land is leased but the building is owned. The Company also leases office space for several operational departments. All of the Company’s leases are operating leases under applicable accounting standards and the lease agreements have maturity dates ranging from January 2021 through May 2076, some of which include options for multiple five Leases are classified as either operating or finance leases at the lease commencement date, and as previously noted, all of the Company's leases have been determined to be operating leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 3.27% as of December 31, 2020. The right-of-use assets and lease liabilities were $17.5 million and $17.9 million as of December 31, 2020, respectively, and were $19.7 million and $19.9 million as of December 31, 2019, respectively. Prior to 2019, the accounting standards did not require assets or liabilities to be recorded for operating leases. Total operating lease expense charged to operations under all operating lease agreements was $2.9 million in 2020, $2.6 million in 2019, and $2.3 million in 2018. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2020 are as follows: ($ in thousands) Year ending December 31: 2021 $ 2,245 2022 1,832 2023 1,673 2024 1,472 2025 1,242 Thereafter 18,272 Total undiscounted lease payments 26,736 Less effect of discounting (8,868) Present value of estimated lease payments (lease liability) $ 17,868 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan . The Company sponsors a retirement savings plan pursuant to Section 401(k) of the Internal Revenue Code ("IRC"). New employees who have met the age requirement are automatically enrolled in the plan at a 5% deferral rate. The automatic deferral can be modified by the employee at any time. An eligible employee may contribute up to 15% of annual salary to the plan, not to exceed IRC limits. The Company’s matches 100% of the employee’s contribution up to 6%. The Company’s matching contribution expense was $4.3 million, $4.2 million and $3.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Although discretionary contributions by the Company are permitted by the plan, the Company did not make any such contributions in the years presented. The Company’s matching and discretionary contributions are made according to the same investment elections each participant has established for their deferral contributions. Pension Plan . Historically, the Company offered a noncontributory defined benefit retirement plan (the “Pension Plan”) that qualified under Section 401(a) of the Internal Revenue Code. The Pension Plan provided for a monthly payment, at normal retirement age of 65, equal to one-twelfth of the sum of (i) 0.75% of Final Average Annual Compensation (five highest consecutive calendar years’ earnings out of the last ten years of employment) multiplied by the employee’s years of service not in excess of 40 years, and (ii) 0.65% of Final Average Annual Compensation in excess of the average social security wage base multiplied by years of service not in excess of 35 years. Benefits were fully vested after five years of service. Effective December 31, 2012, the Company froze the Pension Plan for all participants. The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. As discussed below, the contributions are invested to provide for benefits under the Pension Plan. The Company did not make any contributions to the Pension Plan for the years presented. The Company also does not expect to contribute to the Pension Plan in 2021. The following table reconciles the beginning and ending balances of the Pension Plan’s benefit obligation, as computed by the Company’s independent actuarial consultants, and its plan assets, with the difference between the two amounts representing the funded status of the Pension Plan as of the end of the respective year. ($ in thousands) 2020 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 41,592 36,354 38,150 Service cost — — — Interest cost 1,223 1,482 1,312 Actuarial loss (gain) 3,788 5,492 (1,160) Benefits paid (1,853) (1,736) (1,948) Benefit obligation at end of year 44,750 41,592 36,354 Change in plan assets Plan assets at beginning of year 43,824 39,170 41,306 Actual return on plan assets 6,196 6,390 (188) Employer contributions — — — Benefits paid (1,853) (1,736) (1,948) Plan assets at end of year 48,167 43,824 39,170 Funded status at end of year $ 3,417 2,232 2,816 The accumulated benefit obligation related to the Pension Plan was $44,750,000, $41,592,000, and $36,354,000 at December 31, 2020, 2019, and 2018, respectively. The following table presents information regarding the amounts recognized in the consolidated balance sheets at December 31, 2020 and 2019 as it relates to the Pension Plan, excluding the related deferred tax assets. ($ in thousands) 2020 2019 Other assets $ 3,417 2,232 The following table presents information regarding the amounts recognized in accumulated other comprehensive income (loss) (“AOCI”) at December 31, 2020 and 2019, as it relates to the Pension Plan. ($ in thousands) 2020 2019 Net loss $ (1,771) (3,721) Prior service cost — — Amount recognized in AOCI before tax effect (1,771) (3,721) Tax benefit 407 855 Net amount recognized as decrease to AOCI $ (1,364) (2,866) The following table reconciles the beginning and ending balances of AOCI at December 31, 2020 and 2019, as it relates to the Pension Plan: ($ in thousands) 2020 2019 Accumulated other comprehensive loss at beginning of fiscal year $ (2,866) (3,091) Net gain (loss) arising during period 1,107 (664) Amortization of unrecognized actuarial loss 843 977 Tax benefit of changes during the year, net (448) (88) Accumulated other comprehensive loss at end of fiscal year $ (1,364) (2,866) The following table reconciles the beginning and ending balances of the prepaid pension cost related to the Pension Plan: ($ in thousands) 2020 2019 Prepaid pension cost as of beginning of fiscal year $ 5,954 6,851 Net periodic pension cost for fiscal year (766) (897) Actual employer contributions — — Prepaid pension asset as of end of fiscal year $ 5,188 5,954 Net pension cost for the Pension Plan included the following components for the years ended December 31, 2020, 2019, and 2018: ($ in thousands) 2020 2019 2018 Service cost – benefits earned during the period $ — — — Interest cost on projected benefit obligation 1,223 1,482 1,312 Expected return on plan assets (1,300) (1,562) (1,115) Net amortization and deferral 843 977 34 Net periodic pension cost $ 766 897 231 The estimated net loss for the Pension Plan that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $590,000. The following table is an estimate of the benefits that will be paid in accordance with the Pension Plan during the indicated time periods, assuming the Pension Plan is operated on an ongoing basis. ($ in thousands) Estimated Year ending December 31, 2021 $ 1,843 Year ending December 31, 2022 1,918 Year ending December 31, 2023 1,977 Year ending December 31, 2024 2,021 Year ending December 31, 2025 2,085 Years ending December 31, 2026-2030 10,891 The investment objective of the Company’s Pension Plan is to ensure that there are sufficient assets to fund regular pension benefits payable to employees over the long-term life of the plan. The Plan seeks to allocate plan assets in a manner that is closely duration-matched with the actuarial projected cash flows of the Plan liabilities, consistent with prudent standards for preservation of capital, tolerance of investment risk, and maintenance of liquidity. Assets of the Plan are held by Fidelity Investments (the “Trustee”). In 2018, the Plan adopted a liability-driven investment (“LDI”) approach to help meet these objectives. The LDI strategy employs a structured fixed-income portfolio designed to reduce volatility in the Plan’s future funding requirements and funding status. This is accomplished by using a blend of high quality corporate and government fixed-income securities, with both intermediate and long-term durations. Generally, the value of these fixed income securities is inversely correlated to changes in market interest rates, which substantially offsets changes in the value of the pension benefit obligation caused by changes in the interest rate used to discount plan liabilities. The fair values of the Company’s pension plan assets at December 31, 2020, by asset category, were as follows: ($ in thousands) Total Fair Value at December 31, Quoted Prices in Significant Other Significant Cash and cash equivalents $ 337 — 337 — Investment funds Fixed income funds 47,830 — 47,830 — Total $ 48,167 — 48,167 — The fair values of the Company’s pension plan assets at December 31, 2019, by asset category, were as follows: ($ in thousands) Total Fair Value at December 31, Quoted Prices in Significant Other Significant Cash and cash equivalents $ 274 — 274 — Investment funds Fixed income funds 43,550 — 43,550 — Total $ 43,824 — 43,824 — The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2020 and 2019. - Cash and cash equivalents: Valued at net asset value (“NAV”), which can be validated with a sufficient level of observable activity (i.e. purchases and sales at NAV), and therefore, the funds were classified within Level 2 of the fair value hierarchy. - Fixed income funds consist of commingled funds that primarily include investments in U.S. government securities and corporate bonds. The commingled funds also include an insignificant portion of investments in other asset-based securities, municipal securities, etc. The commingled funds are valued at the NAV for the units in the fund. The NAV, as provided by the Trustee, is used as practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund. Supplemental Executive Retirement Plan . Historically, the Company sponsored a Supplemental Executive Retirement Plan (the “SERP”) for the benefit of certain senior management executives of the Company. The purpose of the SERP was to provide additional monthly pension benefits to ensure that each such senior management executive would receive lifetime monthly pension benefits equal to 3% of his or her final average compensation multiplied by his or her years of service (maximum of 20 years) to the Company or its subsidiaries, subject to a maximum of 60% of his or her final average compensation. The amount of a participant’s monthly SERP benefit is reduced by (i) the amount payable under the Company’s qualified Pension Plan (described above), and (ii) 50% of the participant’s primary social security benefit. Final average compensation means the average of the five highest consecutive calendar years of earnings during the last ten years of service prior to termination of employment. The SERP is an unfunded plan. Payments are made from the general assets of the Company. Effective December 31, 2012, the Company froze the SERP to all participants. The following table reconciles the beginning and ending balances of the SERP’s benefit obligation, as computed by the Company’s independent actuarial consultants: ($ in thousands) 2020 2019 2018 Change in benefit obligation Projected benefit obligation at beginning of year $ 5,638 5,794 5,970 Service cost — — 124 Interest cost 158 219 200 Actuarial (gain) loss 517 23 (102) Benefits paid (331) (398) (398) Projected benefit obligation at end of year 5,982 5,638 5,794 Plan assets — — — Funded status at end of year $ (5,982) (5,638) (5,794) The accumulated benefit obligation related to the SERP was $5,982,000, $5,638,000, and $5,794,000 at December 31, 2020, 2019, and 2018, respectively. The following table presents information regarding the amounts recognized in the consolidated balance sheets at December 31, 2020 and 2019 as it relates to the SERP, excluding the related deferred tax assets. ($ in thousands) 2020 2019 Other liabilities $ (5,982) (5,638) The following table presents information regarding the amounts recognized in AOCI at December 31, 2020 and 2019, as it relates to the SERP: ($ in thousands) 2020 2019 Net (loss) gain $ (46) 629 Prior service cost — — Amount recognized in AOCI before tax effect (46) 629 Tax expense 11 (145) Net amount recognized as (decrease) increase to AOCI $ (35) 484 The following table reconciles the beginning and ending balances of AOCI at December 31, 2020 and 2019, as it relates to the SERP: ($ in thousands) 2020 2019 Accumulated other comprehensive income (loss) at beginning of fiscal year $ 484 624 Net (loss) gain arising during period (517) (22) Prior service cost — — Amortization of unrecognized actuarial gain (157) (163) Amortization of prior service cost and transition obligation — — Tax expense related to changes during the year, net 155 45 Accumulated other comprehensive income (loss) at end of fiscal year $ (35) 484 The following table reconciles the beginning and ending balances of the prepaid pension cost related to the SERP: ($ in thousands) 2020 2019 Accrued liability as of beginning of fiscal year $ (6,266) (6,608) Net periodic pension cost for fiscal year (1) (56) Benefits paid 331 398 Accrued liability as of end of fiscal year $ (5,936) (6,266) Net pension cost for the SERP included the following components for the years ended December 31, 2020, 2019, and 2018: ($ in thousands) 2020 2019 2018 Service cost – benefits earned during the period $ — — 124 Interest cost on projected benefit obligation 158 219 200 Net amortization and deferral (157) (163) (13) Net periodic pension cost $ 1 56 311 The estimated net loss for the SERP that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $15,000. The following table is an estimate of the benefits that will be paid in accordance with the SERP during the indicated time periods: ($ in thousands) Estimated Year ending December 31, 2021 $ 330 Year ending December 31, 2022 326 Year ending December 31, 2023 322 Year ending December 31, 2024 318 Year ending December 31, 2025 340 Years ending December 31, 2026-2030 1,719 Applicable to both Plans The components of net periodic benefit cost other than the service cost component are included in the line item "Other operating expenses" in the Consolidated Statements of Income. The following assumptions were used in determining the actuarial information for the Pension Plan and the SERP for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Pension SERP Pension SERP Pension SERP Discount rate used to determine net periodic pension cost 3.03 % 2.89 % 4.08 % 3.92 % 3.46 % 3.46 % Discount rate used to calculate end of year liability disclosures 2.24 % 2.04 % 3.03 % 2.89 % 4.08 % 3.92 % Expected long-term rate of return on assets 3.03 % n/a 4.08 % n/a 2.75 % n/a Rate of compensation increase n/a n/a n/a n/a n/a n/a The Company’s discount rate policy for the Pension Plan is based on a calculation of the Company’s expected pension payments, with those payments discounted using the FTSE yield curve (formerly called the Citigroup Pension Index yield curve) that matches the specific expected cash flows of the Pension Plan. The discount rate policy for the SERP is to use the FTSE yield curve that matches the expected cash flows of the SERP. |
Commitments, Contingencies, and
Commitments, Contingencies, and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Concentrations of Credit Risk | Commitments, Contingencies, and Concentrations of Credit Risk See Note 10 with respect to future obligations under operating leases. In the normal course of business, there are various outstanding commitments to extend credit that are not reflected in the financial statements. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Commitments may expire without being used. The following table presents the Company’s outstanding loan commitments at December 31, 2020 and December 31, 2019. ($ in thousands) December 31, 2020 December 31, 2019 Type of Commitment Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Loan commitments $ 238,745 94,218 332,963 263,775 123,169 386,944 Unused lines of credit 188,014 900,046 1,088,060 169,278 766,450 935,728 Total $ 426,759 994,264 1,421,023 433,053 889,619 1,322,672 At December 31, 2020 and 2019, the Company had $14.1 million and $12.0 million, respectively, in standby letters of credit outstanding. The Company has no carrying amount for these standby letters of credit at either of those dates. The nature of the standby letters of credit is a stand-alone obligation made on behalf of the Company’s customers to suppliers of the customers to guarantee payments owed to the supplier by the customer. The standby letters of credit are generally for terms for one year, at which time they may be renewed for another year if both parties agree. The payment of the guarantees would generally be triggered by a continued nonpayment of an obligation owed by the customer to the supplier. The maximum potential amount of future payments (undiscounted) the Company could be required to make under the guarantees in the event of nonperformance by the parties to whom credit or financial guarantees have been extended is represented by the contractual amount of the standby letter of credit. In the event that the Company is required to honor a standby letter of credit, a note, already executed with the customer, is triggered which provides repayment terms and any collateral. Over the past two years, the Company has only had to honor a minimal amount of standby letters of credit, which have been or are being repaid by the borrower without any loss to the Company. Management expects any draws under existing commitments to be funded through normal operations. The Company is not involved in any legal proceedings which, in management’s opinion, could have a material effect on the consolidated financial position of the Company. The Bank grants primarily commercial and installment loans to customers throughout its market area, which consists of branch locations in 36 counties across all regions of North Carolina and three counties in northeastern South Carolina. The real estate loan portfolio can be affected by the condition of the local real estate market. The commercial and installment loan portfolios can be affected by local economic conditions. The Company’s loan portfolio is not concentrated in loans to any single borrower or to a relatively small number of borrowers. Additionally, management is not aware of any concentrations of loans to classes of borrowers or industries that would be similarly affected by economic conditions. In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, the Company monitors exposure to credit risk that could arise from potential concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan’s life. For example, the Bank makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). These loans are underwritten and monitored to manage the associated risks. The Company has determined that there is no concentration of credit risk associated with its lending policies or practices. The Company’s investment portfolio consists principally of obligations of government-sponsored enterprises, mortgage-backed securities guaranteed by government-sponsored enterprises, corporate bonds, and general obligation municipal securities. The Company also holds stock with the Federal Reserve Bank and the Federal Home Loan Bank as a requirement for membership in the system. The following are the fair values at December 31, 2020 of securities to any one issuer/guarantor that exceed $5.0 million, with such amounts representing the maximum amount of credit risk that the Company would incur if the issuer did not repay the obligation. ( $ in thousands ) Issuer Amortized Cost Fair Value Fannie Mae – mortgage-backed securities $ 571,245 585,035 Freddie Mac – mortgage-backed securities 549,811 552,830 Ginnie Mae – mortgage-backed securities 234,780 237,159 Federal Farm Credit Bank – bonds 40,015 40,356 Federal Home Loan Bank system - bonds 30,000 29,850 Small Business Administration securities 22,150 22,436 Federal Reserve Bank - common stock 17,671 17,671 First Citizens Bank – corporate bonds 11,000 10,999 Bank of America corporate bonds 7,000 7,409 Citigroup, Inc. corporate bonds 6,014 6,346 Federal Home Loan Bank of Atlanta - common stock 5,855 5,855 Loudoun County, Virginia - municipal bond 5,599 5,735 Goldman Sachs Group Inc. corporate bond 5,037 5,319 JP Morgan Chase corporate bond 5,009 5,294 The Company also periodically invests in limited partnerships, limited liability companies (“LLCs”), and other privately held companies. As of December 31, 2020, the Company had a remaining funding commitments of $6.3 million related to these investments. The Company primarily places its deposits and correspondent accounts with the Federal Home Loan Bank of Atlanta, the Federal Reserve Bank, and Pacific Coast Bankers Bank (“PCBB”). At December 31, 2020, the Company had deposits in the Federal Home Loan Bank of Atlanta totaling $42.6 million, deposits of $230.7 million in the Federal Reserve Bank, and deposits of $2.8 million in PCBB. None of the deposits held at the Federal Home Loan Bank of Atlanta or the Federal Reserve Bank are FDIC-insured, however the Federal Reserve Bank is a government entity and therefore risk of loss is minimal. The deposits held at PCBB are FDIC-insured up to $250,000. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2020. ($ in thousands) Description of Financial Instruments Fair Value at December 31, Quoted Prices in Significant Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 70,206 — 70,206 — Mortgage-backed securities 1,337,706 — 1,337,706 — Corporate bonds 45,220 — 45,220 — Total available for sale securities $ 1,453,132 — 1,453,132 — Presold mortgages in process of settlement $ 42,271 42,271 — — Nonrecurring Impaired loans $ 22,142 — — 22,142 Foreclosed real estate 1,484 — — 1,484 The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2019. ($ in thousands) Description of Financial Instruments Fair Value at December 31, Quoted Prices in Significant Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 20,009 — 20,009 — Mortgage-backed securities 767,285 — 767,285 — Corporate bonds 34,651 — 34,651 — Total available for sale securities $ 821,945 — 821,945 — Presold mortgages in process of settlement $ 19,712 19,712 — — Nonrecurring Impaired loans $ 16,215 — — 16,215 Foreclosed real estate 1,830 — — 1,830 The following is a description of the valuation methodologies used for instruments measured at fair value. Presold Mortgages in Process of Settlement - The fair value is based on the committed price that an investor has agreed to pay for the loan and is considered a Level 1 input. Securities Available for Sale — When quoted market prices are available in an active market, the securities are classified as Level 1 in the valuation hierarchy. If quoted market prices are not available, but fair values can be estimated by observing quoted prices of securities with similar characteristics, the securities are classified as Level 2 on the valuation hierarchy. Most of the fair values for the Company’s Level 2 securities are determined by our third-party bond accounting provider using matrix pricing. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. For the Company, Level 2 securities include mortgage-backed securities, commercial mortgage-backed obligations, government-sponsored enterprise securities, and corporate bonds. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Company reviews the pricing methodologies utilized by the bond accounting provider to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Impaired loans — Fair values for impaired loans in the above table are measured on a non-recurring basis and are based on the underlying collateral values securing the loans, adjusted for estimated selling costs, or the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined 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). Any fair value adjustments are recorded in the period incurred as provision for loan 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). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income. For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at December 31, Valuation Significant Unobservable Range (Weighted Average) Impaired loans - valued at collateral value $ 16,000 Appraised value Discounts applied for estimated costs to sell 10% Impaired loans - valued at PV of expected cash flows $ 6,142 PV of expected cash flows Discount rates used in the calculation of PV of expected cash flows 4-11% (6.21%) Foreclosed real estate 1,484 Appraised value Discounts for estimated costs to sell 10% For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at December 31, Valuation Significant Unobservable Range (Weighted Average) Impaired loans - valued at collateral value $ 10,718 Appraised value Discounts applied for estimated costs to sell 10% Impaired loans - valued at PV of expected cash flows $ 5,497 PV of expected cash flows Discount rates used in the calculation of PV of expected cash flows 4-11% (6.50%) Foreclosed real estate 1,830 Appraised value Discounts for estimated costs to sell 10% The carrying amounts and estimated fair values of financial instruments not carried at fair value as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Level in Carrying Estimated Carrying Estimated Cash and due from banks, noninterest-bearing Level 1 $ 93,724 93,724 64,519 64,519 Due from banks, interest-bearing Level 1 273,566 273,566 166,783 166,783 Securities held to maturity Level 2 167,551 170,734 67,932 68,333 SBA loans held for sale Level 2 6,077 7,465 — — Total loans, net of allowance Level 3 4,678,927 4,661,197 4,432,068 4,407,610 Accrued interest receivable Level 1 20,272 20,272 16,648 16,648 Bank-owned life insurance Level 1 106,974 106,974 104,441 104,441 SBA servicing asset Level 3 5,788 6,569 5,383 5,649 Deposits Level 2 6,273,596 6,275,329 4,931,355 4,930,751 Borrowings Level 2 61,829 53,321 300,671 295,399 Accrued interest payable Level 2 904 904 2,154 2,154 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recorded total stock-based compensation expense of $2,540,000, $2,270,000 and $1,569,000 for the years ended December 31, 2020, 2019, and 2018, respectively. The Company recognized $584,000, $522,000, and $367,000 of income tax benefits related to stock-based compensation expense in the income statement for the years ended December 31, 2020, 2019, and 2018, respectively. At December 31, 2020, the sole equity-based compensation plan for the Company is the First Bancorp 2014 Equity Plan (the "Equity Plan), which was approved by shareholders on May 8, 2014. As of December 31, 2020, the Equity Plan had 549,876 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 in the form of shares of restricted stock with service vesting conditions only. Compensation expense for these grants is recorded over the requisite service periods. Upon forfeiture, any previously recognized compensation cost is reversed. Upon a change in control (as defined in the Equity Plan), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested. Certain of the Company’s equity grants contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for each incremental award. Compensation expense is based on the estimated number of stock awards that will ultimately vest. Over the past five years, there have been insignificant amounts of forfeitures, and therefore the Company assumes that all awards granted with service conditions only will vest. The Company issues new shares of common stock when options are exercised. In addition to employee equity awards, the Company's practice is to grant common shares, valued at approximately $32,000, to each non-employee director (currently 11 in total) in June of each year. Compensation expense associated with these director awards is recognized on the date of the award since there are no vesting conditions. On June 1, 2020, the Company granted 14,146 shares of common stock to non-employee directors (1,286 shares per director), at a fair market value of $24.87 per share, which was the closing price of the Company’s common stock on that date, which resulted in $352,000 in expense. On June 1, 2019, the Company granted 9,030 shares of common stock to non-employee directors (903 shares per director), at a fair market value of $35.41 per share, which was the closing price of the Company’s common stock on that date, which resulted in $320,000 in expense. The expense associated with director grants is classified as "other operating expense" in the Consolidated Statements of Income. The following table presents information regarding the activity during 2018, 2019, and 2020 related to the Company’s outstanding restricted stock: Long-Term Restricted Stock Shares Grant Date Fair Value Nonvested at January 1, 2018 103,063 $ 24.08 Granted during the period 66,060 40.04 Vested during the period (35,703) 22.82 Forfeited or expired during the period (4,169) 29.99 Nonvested at December 31, 2018 129,251 $ 32.39 Granted during the period 82,826 36.36 Vested during the period (51,757) 25.02 Forfeited or expired during the period (954) 41.93 Nonvested at December 31, 2019 159,366 $ 36.79 Granted during the period 68,704 26.96 Vested during the period (55,965) 33.91 Forfeited or expired during the period — — Nonvested at December 31, 2020 172,105 $ 33.80 Total unrecognized compensation expense as of December 31, 2020 amounted to $2,554,000 with a weighted average remaining term of 1.8 years. The Company expects to record $1,577,000 of compensation expense in the next twelve months related to these nonvested awards that are outstanding at December 31, 2020. Prior to 2010, stock options were the primary form of stock-based compensation utilized by the Company. At December 31, 2019 and 2020, there were no stock options outstanding. The following table presents information regarding the activity since January 1, 2018 related to all of the Company’s stock options outstanding: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at January 1, 2018 38,689 $ 16.09 Granted — — Exercised (29,689) 16.61 $ 659,743 Forfeited — — Expired — — Balance at December 31, 2018 9,000 $ 14.35 Granted — — Exercised (9,000) 14.35 $ 203,963 Forfeited — — Expired — — Balance at December 31, 2019 — $ — Granted — — Exercised — — $ — Forfeited — — Expired — — Outstanding at December 31, 2020 — $ — — $ — Exercisable at December 31, 2020 — $ — — $ — In 2019 and 2018, the Company received $129,000 and $324,000, respectively, as a result of stock option exercises. |
Regulatory Restrictions
Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Restrictions | Regulatory Restrictions The Company is regulated by the Board of Governors of the Federal Reserve and is subject to securities registration and public reporting regulations of the Securities and Exchange Commission. The Bank is regulated by the Federal Reserve and the North Carolina Commissioner of Banks. The primary source of funds for the payment of dividends by the Company is dividends received from its subsidiary, the Bank. The Bank, as a North Carolina banking corporation, may declare dividends so long as such dividends do not reduce its capital below its applicable required capital (typically, the level of capital required to be deemed “adequately capitalized.”) As of December 31, 2020, approximately $590,672,000 of the Company’s investment in the Bank is restricted as to transfer to the Company without obtaining prior regulatory approval. The average reserve balance maintained by the Bank under the requirements of the FRB was approximately $1,099,000 for the year ended December 31, 2020. The Company and the Bank must comply with regulatory capital requirements established by the FRB. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In 2013, the FRB approved final rules implementing the Basel Committee on Banking Supervision capital guidelines, referred to a “Basel III.” The final rules established a new “Common Equity Tier I” ratio; new higher capital ratio requirements, including a capital conservation buffer; narrowed the definitions of capital; imposed new operating restrictions on banking organizations with insufficient capital buffers; and increased the risk weighting of certain assets. The final rules became effective January 1, 2015 for the Company. The capital conservation buffer requirement was phased in beginning January 1, 2016, at 0.625% of risk weighted assets, and increased each year until fully implemented at 2.5% in January 1, 2019. The capital conservation buffer requirement at December 31, 2020 was 2.5%. As of December 31, 2020, the capital standards require the Company to maintain minimum ratios of “Common Equity Tier I” capital to total risk-weighted assets, “Tier I” capital to total risk-weighted assets, and total capital to risk-weighted assets of 4.50%, 6.00% and 8.00%, respectively. Common Equity Tier I capital is comprised of common stock and related surplus, plus retained earnings, and is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. Tier I capital is comprised of Common Equity Tier I capital plus Additional Tier I Capital, which for the Company includes non-cumulative perpetual preferred stock and trust preferred securities. Total capital is comprised of Tier I capital plus certain adjustments, the largest of which is our allowance for loan losses. Risk-weighted assets refer to our on- and off-balance sheet exposures, adjusted for their related risk levels using formulas set forth in Federal Reserve and FDIC regulations. In addition to the risk-based capital requirements described above, the Company and the Bank are subject to a leverage capital requirement, which calls for a minimum ratio of Tier I capital (as defined above) to quarterly average total assets of 3.00% to 5.00%, depending upon the institution’s composite ratings as determined by its regulators. The Federal Reserve has not advised the Company of any requirement specifically applicable to it. In addition to the minimum capital requirements described above, the regulatory framework for prompt corrective action also contains specific capital guidelines applicable to banks for classification as “well capitalized,” which are presented with the minimum ratios, the Company’s ratios and the Bank’s ratios as of December 31, 2020 and 2019 in the following table. Based on the most recent notification from its regulators, the Bank is well capitalized under the framework. There are no conditions or events since that notification that management believes have changed the Company’s classification. Actual Fully Phased-In Regulatory To Be Well Capitalized ($ in thousands) Amount Ratio Amount Ratio Amount Ratio (must equal or exceed) (must equal or exceed) As of December 31, 2020 Common Equity Tier I Capital Ratio Company $ 639,369 13.19 % $ 339,251 7.00 % $ N/A N/A Bank 682,312 14.08 % 339,125 7.00 % 314,902 6.50 % Total Capital Ratio Company 744,835 15.37 % 508,876 10.50 % N/A N/A Bank 735,282 15.18 % 508,688 10.50 % 484,465 10.00 % Tier I Capital Ratio Company 691,865 14.28 % 411,947 8.50 % N/A N/A Bank 682,312 14.08 % 411,795 8.50 % 387,572 8.00 % Leverage Ratio Company 691,865 9.88 % 280,039 4.00 % N/A N/A Bank 682,312 9.75 % 280,003 4.00 % 350,004 5.00 % As of December 31, 2019 Common Equity Tier I Capital Ratio Company $ 610,642 13.28 % $ 321,994 7.00 % $ N/A N/A Bank 661,234 14.38 % 321,866 7.00 % 298,875 6.50 % Total Capital Ratio Company 684,931 14.89 % 482,991 10.50 % N/A N/A Bank 683,178 14.86 % 482,799 10.50 % 459,808 10.00 % Tier I Capital Ratio Company 662,987 14.41 % 390,993 8.50 % N/A N/A Bank 661,234 14.38 % 390,837 8.50 % 367,846 8.00 % Leverage Ratio Company 662,987 11.19 % 236,904 4.00 % N/A N/A Bank 661,234 11.17 % 236,700 4.00 % 295,875 5.00 % |
Supplementary Income Statement
Supplementary Income Statement Information | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Supplementary Income Statement Information | Supplementary Income Statement Information Components of other noninterest income/expense exceeding 1% of total revenue for any of the years ended December 31, 2020, 2019, and 2018 are as follows: ($ in thousands) 2020 2019 2018 Other service charges, commissions, and fees – interchange fees, net $ 14,142 13,814 11,995 Other operating expenses – dues and subscriptions (includes software subscriptions) 4,764 4,250 3,431 Other operating expenses – data processing expense 3,157 3,130 3,234 Other operating expenses – telephone and data line expense 2,893 3,057 3,024 Other operating expenses – marketing 1,960 2,727 3,065 |
Condensed Parent Company Inform
Condensed Parent Company Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Company Information | Condensed Parent Company Information Condensed financial data for First Bancorp (parent company only) follows: CONDENSED BALANCE SHEETS As of December 31, ($ in thousands) 2020 2019 Assets Cash on deposit with bank subsidiary $ 15,284 2,014 Investment in wholly-owned subsidiaries, at equity 938,294 904,924 Premises and Equipment 7 7 Other assets (164) 5,642 Total assets 953,421 912,587 Liabilities and shareholders’ equity Trust preferred securities 54,200 54,049 Other liabilities 5,800 6,137 Total liabilities 60,000 60,186 Shareholders’ equity 893,421 852,401 Total liabilities and shareholders’ equity $ 953,421 912,587 CONDENSED STATEMENTS OF INCOME Year Ended December 31, ($ in thousands) 2020 2019 2018 Dividends from wholly-owned subsidiaries $ 63,100 29,800 15,525 Earnings of wholly-owned subsidiaries, net of dividends 20,899 65,555 77,050 Interest expense (1,743) (2,648) (2,498) All other income and expenses, net (779) (661) (788) Net income $ 81,477 92,046 89,289 CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, ($ in thousands) 2020 2019 2018 Operating Activities: Net income $ 81,477 92,046 89,289 Equity in undistributed earnings of subsidiaries (20,899) (65,555) (77,050) Decrease (increase) in other assets 5,806 (5,850) (13) (Decrease) increase in other liabilities (3) 64 146 Total – operating activities 66,381 20,705 12,372 Financing Activities: Payment of common stock cash dividends (20,936) (13,662) (11,281) Repurchases of common stock (31,868) (10,000) — Proceeds from issuance of common stock — 129 324 Stock withheld for payment of taxes (307) (702) (406) Total - financing activities (53,111) (24,235) (11,363) Net increase (decrease) in cash 13,270 (3,530) 1,009 Cash, beginning of year 2,014 5,544 4,535 Cash, end of year $ 15,284 2,014 5,544 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Rabbi Trust Obligation With the acquisition of Carolina Bank in March 2017, the Company assumed a deferred compensation plan for certain members of Carolina Bank’s board of directors that is fully funded by Company stock, which was valued at $7.7 million on the date of acquisition. Subsequent to the acquisition in 2017, approximately $5.5 million of the deferred compensation has been paid to the plan participants. The balances of the related asset and liability were each $2.2 million and $2.6 million at December 31, 2020 and December 31, 2019, respectively, both of which are presented as components of shareholders’ equity. Equity Issuances On May 5, 2016, the Company acquired SBA Complete, Inc. (“SBA Complete”), a firm that provides services to financial institutions across the country related to Small Business Administration (“SBA”) loan origination and servicing. Per the terms of the acquisition agreement, the former owners of SBA Complete were eligible for a contingent earn-out payment to be paid in shares of Company stock based on achieving predetermined profitability goals over a cumulative three year period. The Company initially valued the earn-out at $3.0 million and adjusted the value quarterly thereafter based on updated estimates. On May 5, 2019, the three year earn-out period concluded, and based on the terms of the earn-out, the Company issued 78,353 shares of common stock with a value of $3.1 million, which increased shareholders' equity and decreased a previously recorded liability. On September 1, 2020, the Company completed the acquisition of Magnolia Financial, Inc., a business financing company headquartered in Spartanburg, South Carolina, that makes loans throughout the southeastern United States. In the transaction, the Company acquired $14.6 million in loans and $0.5 million of other assets, and assumed $11.7 million in borrowings, substantially all of which was paid off subsequent to the closing. The transaction value was approximately $10.0 million with the Company paying $9.5 million in cash and issuing 24,096 shares of its common stock, which had a value of approximately $0.5 million. Stock Repurchases |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareThe following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share: For Years Ended December 31, 2020 2019 2018 ($ in thousands except per Income Shares Per Share Income Shares Per Share Income Shares Per Share Basic EPS: Net income $ 81,477 $ 92,046 $ 89,289 Less: income allocated to participating securities $ (398) $ (450) $ — Basic EPS per common share $ 81,079 28,839,866 $ 2.81 $ 91,596 29,547,851 $ 3.10 $ 89,289 29,566,259 $ 3.02 Diluted EPS: Net income $ 81,477 28,839,866 $ 92,046 29,547,851 $ 89,289 29,566,259 Effect of Dilutive Securities — 141,701 — 172,648 — 141,172 Diluted EPS per common share $ 81,477 28,981,567 $ 2.81 $ 92,046 29,720,499 $ 3.10 $ 89,289 29,707,431 $ 3.01 For the years ended December 31, 2020 , |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) for the Company are as follows: ($ in thousands) December 31, December 31, December 31, Unrealized gain (loss) on securities available for sale $ 20,448 9,743 (12,390) Deferred tax (liability) asset (4,699) (2,239) 2,896 Net unrealized gain (loss) on securities available for sale 15,749 7,504 (9,494) Postretirement plans asset (liability) (1,817) (3,092) (3,220) Deferred tax asset (liability) 418 711 753 Net postretirement plans asset (liability) (1,399) (2,381) (2,467) Total accumulated other comprehensive income (loss) $ 14,350 5,123 (11,961) The following table discloses the changes in accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019, and 2018 (all amounts are net of tax). ($ in thousands) Unrealized Gain Postretirement Plans Asset Total Beginning balance at January 1, 2018 $ (1,694) (2,452) (4,146) Other comprehensive income (loss) before reclassifications (7,800) (31) (7,831) Amounts reclassified from accumulated other comprehensive income — 16 16 Net current-period other comprehensive income (loss) (7,800) (15) (7,815) Ending balance at December 31, 2018 (9,494) (2,467) (11,961) Other comprehensive income (loss) before reclassifications 17,073 (528) 16,545 Amounts reclassified from accumulated other comprehensive income (75) 614 539 Net current-period other comprehensive income (loss) 16,998 86 17,084 Ending balance at Ending balance at December 31, 2019 7,504 (2,381) 5,123 Other comprehensive income (loss) before reclassifications 14,425 454 14,879 Amounts reclassified from accumulated other comprehensive income (6,180) 528 (5,652) Net current-period other comprehensive income (loss) 8,245 982 9,227 Ending balance at December 31, 2020 $ 15,749 (1,399) 14,350 Amounts reclassified from accumulated other comprehensive income for Unrealized Gain (Loss) on Securities Available for Sale represent realized securities gains or losses, net of tax effects. Amounts reclassified from accumulated other comprehensive income for Postretirement Plans Asset (Liability) represent amortization of amounts included in Accumulated Other Comprehensive Income, net of taxes, and are recorded in the "Other operating expenses" line item of the Consolidated Statements of Income. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
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 years ended December 31, 2020, 2019, and 2018. Items outside the scope of ASC 606 are noted as such. For the Years Ended December 31, ($ in thousands) 2020 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 11,098 12,970 12,690 Other service charges, commissions, and fees: Interchange income 14,142 13,814 11,995 Other fees 5,955 5,667 4,493 Commissions from sales of insurance and financial products: Insurance income 5,353 5,289 6,038 Wealth management income 3,495 3,206 2,693 SBA consulting fees 8,644 3,872 4,675 Noninterest income (in-scope of Topic 606) 48,687 44,818 42,584 Noninterest income (out-of-scope of Topic 606) 32,659 14,711 16,358 Total noninterest income $ 81,346 59,529 58,942 A description of the Company’s revenue streams accounted for under ASC 606 is detailed below. Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Overdraft fees are recognized at the point in time that the overdraft occurs. Maintenance and activity fees include account maintenance fees and transaction-based fees. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Service charges on deposits are withdrawn from the customer’s account balance. Other service charges, commissions, and fees: The Company earns interchange income on its customers’ debit and credit card usage and earns fees from other services utilized by its customers. Interchange income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange expenses were presented on a gross basis prior to the adoption of ASC 606 and are presented on a net basis. The 2018 income for this item was originally reported on a gross basis, but is presented net of $2.6 million in interchange expenses in these financial statements. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, ATM surcharge fees, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Commissions from the sale of insurance and financial products: The Company earns commissions from the sale of insurance policies and wealth management products. Insurance income generally consists of commissions from the sale of insurance policies and performance-based commissions from insurance companies. The Company recognizes commission income from the sale of insurance policies when it acts as an agent between the insurance company and the policyholder. The Company’s performance obligation is generally satisfied upon the issuance of the insurance policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. Performance-based commissions from insurance companies are recognized at a point in time as policies are sold. Wealth Management Income primarily consists of commissions received on financial product sales, such as annuities. The Company’s performance obligation is generally satisfied upon the issuance of the financial product. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company also earns some fees from asset management, which is billed quarterly for services rendered in the most recent period, for which the performance obligation has been satisfied. SBA Consulting fees: The Company earns fees for its consulting services related to the origination of SBA loans. Fees are based on a percentage of the dollar amount of the originated loans and are recorded when the performance obligation has been satisfied. During 2020, the Company's SBA subsidiary assisted its third-party clients in the origination of PPP loans and charged and received fees for doing so. For several clients, the forgiveness piece of the PPP process, which will occur at a future time, was included in the fees charged. Accordingly, the Company recorded deferred revenue for approximately one-half of the fees received, which amounted to $1.6 million. During 2020, the Company realized approximately $0.2 million of this deferred revenue related to fulfilling a portion of the forgiveness services. At December 31, 2020, the remaining amount of deferred revenue was $1.4 million. These fees will be recorded as income in the period in which the services associated with the forgiveness process are rendered. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 four wholly owned subsidiaries that are fully consolidated - First Bank Insurance Services, Inc. (“First Bank Insurance”), SBA Complete, Inc. (“SBA Complete”), Magnolia Financial, Inc. ("Magnolia Financial"), and First Troy SPE, LLC. All significant intercompany accounts and transactions have been eliminated. Subsequent events have been evaluated through the date of filing this Form 10-K. The Company is a bank holding company. The principal activity of the Company is the ownership and operation of the Bank, a state chartered bank with its main office in Southern Pines, North Carolina. The Company is also the parent company for a series of statutory trusts that were formed at various times since 2002 for the purpose of issuing trust preferred debt securities. The trusts are not consolidated for financial reporting purposes; however, notes issued by the Company to the trusts in return for the proceeds from the issuance of the trust preferred securities are included in the consolidated financial statements and have terms that are substantially the same as the corresponding trust preferred securities. The trust preferred securities qualify as capital for regulatory capital adequacy requirements. First Bank Insurance is an agent for property and casualty insurance policies. SBA Complete specializes in providing consulting services for financial institutions across the country related to Small Business Administration (“SBA”) loan origination and servicing. Magnolia Financial is a business financing company that makes loans throughout the southeastern United States. First Troy SPE, LLC was formed in order to hold and dispose of certain real estate foreclosed upon by the Bank. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by the Company in the preparation of its consolidated financial statements are the determination of the allowance for loan losses, the valuation of other real estate, the accounting and impairment testing related to intangible assets, and the fair value and discount accretion of acquired loans. |
Business Combinations | Business Combinations – The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of common shares issued is determined based on the market price of the stock as of the closing of the acquisition. |
Cash and Cash Equivalents | Cash and Cash Equivalents - The Company considers all highly liquid assets with original maturities of 90 days or less, such as cash on hand, noninterest-bearing and interest-bearing amounts due from banks and federal funds sold, to be “cash equivalents.” |
Securities | Securities - Debt securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Debt securities not classified as held to maturity are classified as “available for sale” and carried at fair value, with unrealized gains and losses being reported as other comprehensive income or loss and reported as a separate component of shareholders’ equity. A decline in the market value of any available for sale or held to maturity security below cost that is deemed to be other than temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Gains and losses on sales of securities are recognized at the time of sale based upon the specific identification method. Premiums and discounts are amortized into income on a level yield basis, with premiums being amortized to the earliest call date and discounts being accreted to the stated maturity date. |
Presold Mortgages in Process of Settlement | Presold Mortgages in Process of Settlement - As a part of normal business operations, the Company originates residential mortgage loans that have been pre-approved by secondary investors to be sold on a best efforts basis. The terms of the loans are set by the secondary investors, and the purchase price that the investor will pay for the loan is agreed to prior to the funding of the loan by the Company. Generally within three weeks after funding, the loans are transferred to the investor in accordance with the agreed-upon terms. The Company records gains from the sale of these loans on the settlement date of the sale equal to the difference between the proceeds received and the carrying amount of the loan. Additionally, the Company records gains for loans in the process of closing, based on the changes in fair value of the loans and related commitments. Between the initial funding of the loans |
SBA Loans Held for Sale | SBA Loans Held for Sale - SBA Loans Held for Sale represent the guaranteed portion of SBA loans that the Company intends to sell in the near future. These loans are carried at the lower of cost or market as determined on an individual loan basis. |
Loans | Loans – Loans are stated at the principal amount outstanding less any partial charge-offs plus deferred origination costs, net of nonrefundable loan fees. Interest on loans is accrued on the unpaid principal balance outstanding. Net deferred loan origination costs/fees are capitalized and recognized as a yield adjustment over the life of the related loan. Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. No allowance for loan losses is carried over from the seller or otherwise recorded on the purchase date. The Company follows specific accounting guidance related to purchased impaired loans. A loan is considered to be a purchased credit impaired loan when purchased loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due, risk grade and nonaccrual status. At the acquisition date, when possible, a stream of expected cash flows is estimated and compared to the estimated fair value in order to determine the accretable yield amount, which is then recognized over the life of the loan based on the effective yield method. Throughout the life of the loan, the stream of expected cash flows may change based on actual results of the loan or the assumptions related to the future performance. Subsequent changes of expected cash flows may result in changes to accretable yield if the present value of expected cash flows exceeds the carrying value or an impairment reserve if the present value of expected cash flows is less than the carrying amount. For purchased impaired loans for which the timing and amount of cash flows expected to be collected cannot be reasonably estimated, the Company uses the cost recovery method of income recognition. Under the cost recovery method of income recognition, all cash receipts are initially applied to principal, with interest income being recorded only after the carrying value of the loan has been reduced to zero. For nonimpaired purchased loans, the Company accretes any fair value discount over the life of the loan in a manner consistent with the guidance for accounting for loan origination fees and costs. An allowance for loan losses is recorded for these loans when the estimated credit losses exceed the remaining unamortized discounts, based on pools of similar loans. A loan is placed on nonaccrual status when, in management’s judgment, the collection of interest appears doubtful. The accrual of interest is discontinued on substantially all loans that become 90 days or more past due with respect to principal or interest. The past due status of loans is based on the contractual payment terms. While a loan is on nonaccrual status, the Company’s policy is that all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to recoveries of any amounts previously charged off. Further cash receipts are recorded as interest income to the extent that any interest has been foregone. Loans are removed from nonaccrual status when they become current as to both principal and interest, when concern no longer exists as to the collectability of principal or interest, and when the loan has provided generally six months of satisfactory payment performance. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the originally contracted terms. For a nonaccrual loan that has been restructured, if the borrower has six months of satisfactory performance under the restructured terms and it is reasonably assured that the borrower will continue to be able to comply with the restructured terms, the loan may be returned to accruing status. The nonaccrual policy discussed above applies to all loan classifications. A loan is considered to be impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is specifically evaluated for an appropriate valuation allowance if the loan balance is above a prescribed evaluation threshold |
SBA Loan Originations | SBA Loan Originations – Through its SBA Lending Division, the Company offers loans guaranteed by the Small Business Administration (“SBA”) for the purchase of businesses, business startups, business expansion, equipment, and working capital. All SBA loans are underwritten and documented as prescribed by the SBA. SBA loans are generally fully amortizing and have maturity dates and amortizations of up to 25 years. The portion of SBA loans originated that are guaranteed and intended for sale on the secondary market are classified as held for sale and are carried at the lower of cost or fair value. The Company generally sells the guaranteed portion of the SBA loan as soon as it is eligible to be sold and retains the servicing right. When the guaranteed portion of an SBA loan is sold, the Company allocates the carrying basis of the loan between the guaranteed portion of the loan sold, the unguaranteed portion of the loans retained, and the servicing asset based on their relative fair values. A gain is recorded for the difference between the proceeds received from the sale and the basis allocated to the sold portion. The relative fair value allocation results in a discount that is recorded on the unguaranteed portion of the loan that is retained. The discount is amortized as a yield adjustment over the life of the loan, so long as the loan performs. In the event the loan is moved to nonaccrual status, the Company ceases the amortization of the discount and upon any subsequent transfer to foreclosed properties or liquidation of the loan, the remaining discount is amortized, along with any remaining servicing asset and deferred loan costs. The foregoing discussion relates to the Company's activities in the SBA's Section 7(a) and similar programs. For information on the Company's participation in the SBA's PPP program, see Note 4 below. |
Allowance for Loan Losses | Allowance for Loan Losses - The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged-off against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Recoveries on loans previously charged-off are added back to the allowance. The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance considered adequate to absorb losses inherent in the portfolio. Management’s determination of the adequacy of the allowance is based on several factors, including: 1. Risk grades assigned to the loans in the portfolio, 2. Specific reserves for individually evaluated impaired loans, 3. Current economic conditions, including the local, state, and national economic outlook; interest rate risk; trends in loan volume, mix and size of loans; levels and trends of delinquencies, 4. Historical loan loss experience, and 5. An assessment of the risk characteristics of the Company’s loan portfolio, including industry concentrations, payment structures, changes in property values, and credit administration practices. The Company segments the loan portfolio into broad categories with similar risk elements for the purposes of computing the allowance for loan losses. Those categories and their specific risks are described below. Commercial, financial, and agricultural - Risks to this loan category include industry concentration and the inability to monitor the condition of the collateral which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Also included in this category for 2020 are PPP loans, which are fully guaranteed by the SBA and thus have minimal risk. Real estate - construction, land development, & other land loans - Risks common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans (see below). Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Real estate - mortgage - residential (1-4 family) first - Residential mortgage loans are susceptible to weakening general economic conditions and increases in unemployment rates and declining real estate values. Real estate - mortgage - home equity loans / lines of credit - Risks common to home equity loans and lines of credit are general economic conditions, including an increase in unemployment rates, and declining real estate values which reduce or eliminate the borrower’s home equity. Real estate - mortgage - commercial and other - Loans in this category are susceptible to declines in occupancy rates, business failure and general economic conditions. Also, declines in real estate values and lack of suitable alternative use for the properties are risks for loans in this category. Consumer loans - Risks common to these loans include regulatory risks, unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property . While management uses the best information available to make evaluations, future adjustments may be necessary if economic and other conditions differ substantially from the assumptions used. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on the examiners’ judgment about information available to them at the time of their examinations. |
Transfers of Financial Assets | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over financial assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Premises and Equipment | Premises and Equipment - Premises and equipment are stated at cost less accumulated depreciation. Depreciation, computed by the straight-line method, is charged to operations over the estimated useful lives of the properties, which range from 2 to 40 years or, in the case of leasehold improvements, over the term of the lease, if shorter. Land is carried at cost. Maintenance and repairs are charged to operations in the year incurred. Gains and losses on dispositions are included in current operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets - Business combinations are accounted for using the acquisition method of accounting. Identifiable intangible assets are recognized separately and are amortized over their estimated useful lives, which for the Company has generally been seven |
SBA Servicing Assets | SBA Servicing Assets - When the Company sells the guaranteed portion of an SBA loan, the Company continues to perform the servicing on the loan and collects a fee related to the sold portion of the loan. A SBA servicing asset is recorded for the fair value of that fee based on a discounted cash flow analysis. SBA servicing assets are included in “Other intangible assets” on the Consolidated Balance Sheets. SBA servicing assets are amortized against income over the lives of the related loans as a reduction of servicing fee income. SBA servicing assets are tested for impairment on a quarterly basis by comparing their estimated fair values, aggregated by year of origination, to the related carrying values. |
Foreclosed Properties | Foreclosed Properties - Foreclosed properties consists primarily of real estate acquired by the Company through legal foreclosure or deed in lieu of foreclosure. The property is initially carried at the lower of cost or the estimated fair value of the property less estimated selling costs (also see Note 13). If there are subsequent declines in fair value, which is reviewed routinely by management, the property is written down to its fair value through a charge to expense. Capital expenditures made to improve the property are capitalized. Costs of holding real estate, such as property taxes, insurance and maintenance, less related revenues during the holding period, are recorded as expense as they are incurred. |
Bank-owned life insurance | Bank-owned life insurance – The Company has purchased life insurance policies on certain current and past key employees and directors where the insurance policy benefits and ownership are retained by the employer. These |
Income Taxes | Income Taxes - |
Other Investments | Other Investments – The Company accounts for substantially all of its investments in limited partnerships, limited liability companies (“LLCs”), and other privately held companies using the equity method of accounting. The accounting treatment depends upon the Company’s percentage ownership and degree of management influence. Under the equity method of accounting, the Company records its initial investment at cost. Subsequently, the carrying amount of the investment is increased or decreased to reflect the Company’s share of income or loss of the investee. The Company’s recognition of earnings or losses from an equity method investment is based on the Company’s ownership percentage in the investee and the investee’s earnings on a quarterly basis. The investees generally provide their financial information during the quarter following the end of a given period. The Company’s policy is to record its share of earnings or losses on equity method investments in the quarter the financial information is received. All of the Company’s investments in limited partnerships, LLCs, and other companies are privately held, and their market values are not readily available. The Company’s management evaluates its investments in investees for impairment based on the investee’s ability to generate cash through its operations or obtain alternative financing, and other subjective factors. There are inherent risks associated with the Company’s investments in such companies, which may result in income statement volatility in future periods. |
Federal Home Loan Bank (FHLB) Stock and Federal Reserve Bank (FRB) Stock | Federal Home Loan Bank (FHLB) Stock - The Company is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost and is recorded in "Other assets". Cash dividends are reported as income. Federal Reserve Bank (FRB) Stock - The Company is a member of its regional Federal Reserve Bank and is required to own stock based on its level of capital. FRB stock is carried at cost and is recorded in "Other assets". Cash dividends are reported as income. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments - Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock-based Compensation | Stock-based Compensation - Restricted stock awards are the primary form of equity grant utilized by the Company. Compensation cost is based on the fair value of the award, which is the closing price of the Company's common stock on the date of the grant. Restricted stock awards issued by the Company typically have vesting periods with service conditions. Compensation cost is recognized as expense over the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period. Because of the insignificant amount of forfeitures the Company has experienced, forfeitures are recognized as they occur. |
Earnings Per Share Amounts | Earnings Per Share Amounts - Basic Earnings Per Common Share is calculated by dividing net income, less income allocated to participating securities, by the weighted average number of common shares outstanding during the period, excluding unvested shares of restricted stock. For the Company, participating securities are comprised of unvested shares of restricted stock. Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. For the periods presented, the Company’s potentially dilutive common stock issuances related to unvested shares of restricted stock and stock option grants under the Company’s equity-based plans, as well as contingently issuable shares. In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows. As it relates to unvested shares of restricted stock, the number of shares added to the denominator is equal to the total number of weighted average unvested shares outstanding. As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities. As it relates to contingently issuable shares, the number of shares that are included in the calculation of dilutive securities is based on the weighted average number of shares that would have been issuable if the end of the reporting period had been the end of the contingency period. If any of the potentially dilutive common stock issuances have an anti-dilutive effect, the potentially dilutive common stock issuance is disregarded. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument, as more fully described in Note 13. 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 assets 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. |
Impairment | Impairment - Goodwill is evaluated for impairment on at least an annual basis, and more often if a triggering event is identified, by comparing the estimated fair value of the reporting units to their related carrying value. At December 31, 2020, the Company had three reporting units – 1) First Bank with $227.6 million in goodwill, 2) First Bank Insurance with $7.4 million in goodwill, and 3) SBA activities, including SBA Complete and our SBA Lending Division, with $4.3 million in goodwill. If the carrying value of a reporting unit exceeds its fair value, the Company determines whether the implied fair value of the goodwill, using various valuation techniques, exceeds the carrying value of the goodwill. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to that excess. The Company reviews all other long-lived assets, including identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company’s policy is that an impairment loss is recognized if the sum of the undiscounted future cash flows is less than the carrying amount of the asset. Any long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. To date, the Company has not recorded any impairment write-downs of its long-lived assets or goodwill. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) - |
Segment Reporting | Segment Reporting - Accounting standards require management to report selected financial and descriptive information about reportable operating segments that exceed certain thresholds. The standards also require related disclosures about products and services, geographic areas, and major customers. Generally, disclosures are required for segments internally identified to evaluate performance and resource allocation. The Company’s |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - Accounting Standards Adopted in 2020 In January 2017, the FASB amended the Goodwill and Other Intangibles topic of the Accounting Standards Codification to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test in which an entity performs a hypothetical purchase price allocation to determine the amount of impairment. The amount of goodwill impairment under this amendment is the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections were effective for the Company on January 1, 2020 and the adoption of this amendment did not have a material effect on the Company's financial statements. In August 2018, the FASB amended the Fair Value Measurement Topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments were effective on January 1, 2020. These amendments did not have a material effect on the Company's financial statements. In March 2019, the FASB issued guidance to address concerns companies had raised about an accounting exception they would lose when assessing the fair value of underlying assets under the leases standard and clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. The amendments were effective for the Company on January 1, 2020 and their adoption did not have a material effect on its financial statements. Accounting Standards Pending Adoption In June 2016, the FASB issued guidance to change the accounting for credit losses. The guidance requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit losses" and record an allowance that, when deducted from the amortized cost basis of the financial assets, presents the net amount expected to be collected on the financial assets. In May 2019, the FASB issued additional guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of the CECL model. The Company does not expect to elect this option. The CECL framework is expected to result in earlier recognition of credit losses and is expected to be significantly influenced by the composition, characteristics and quality of the Company's loan portfolio, as well as the prevailing economic conditions and forecasts. As originally provided for in the CECL standard, the Company would have applied the new guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, which, for the Company, was January 1, 2020, with future adjustments to credit loss expectations recorded through the income statement as charges or credits to earnings. In the first quarter of 2020, in response to the COVID-19 pandemic, the CARES Act was enacted by the United States Congress and signed by the President. The CARES Act included an election to defer the implementation of CECL until the earlier of the cessation of the national emergency or December 31, 2020. Due primarily to the challenges associated with developing a reliable forecast of losses that may result from the unprecedented pandemic, the Company elected to opt-in to this deferral option. In December 2020, the United States Congress extended several provisions of the CARES Act, including the option to further defer implementation of CECL until January 1, 2022. The Company currently expects to adopt CECL as of January 1, 2021. Upon the adoption of CECL, the Company expects its allowance for credit losses related to all financial assets will increase by approximately $12-$14 million and its reserve for unfunded commitments will increase by $6-$7 million. As noted above, this initial impact will be reflected as a cumulative-effect adjustment to retained earnings. In August 2018, the FASB amended the Compensation - Retirement Benefits – Defined Benefit Plans Topic of the Accounting Standards Codification to improve disclosure requirements for employers that sponsor defined benefit pension and other postretirement plans. The guidance removes disclosures that are no longer considered cost-beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for LIBOR reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Book Values and Approximate Fair Values of Investment Securities | The book values and approximate fair values of investment securities at December 31, 2020 and 2019 are summarized as follows: 2020 2019 Amortized Fair Unrealized Amortized Fair Unrealized ($ in thousands) Gains (Losses) Gains (Losses) Securities available for sale: Government-sponsored enterprise securities $ 70,016 70,206 371 (181) 20,000 20,009 17 (8) Mortgage-backed securities 1,318,998 1,337,706 20,832 (2,124) 758,491 767,285 9,463 (669) Corporate bonds 43,670 45,220 1,760 (210) 33,711 34,651 1,025 (85) Total available for sale 1,432,684 1,453,132 22,963 (2,515) 812,202 821,945 10,505 (762) Securities held to maturity: Mortgage-backed securities 29,959 30,900 941 — 41,423 41,542 125 (6) State and local governments 137,592 139,834 2,407 (165) 26,509 26,791 285 (3) Total held to maturity $ 167,551 170,734 3,348 (165) 67,932 68,333 410 (9) |
Schedule of Information Regarding Securities with Unrealized Losses | The following table presents information regarding securities with unrealized losses at December 31, 2020: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 29,812 181 — — 29,812 181 Mortgage-backed securities 497,992 1,957 6,168 167 504,160 2,124 Corporate bonds 3,956 45 835 165 4,791 210 State and local governments 23,310 165 — — 23,310 165 Total temporarily impaired securities $ 555,070 2,348 7,003 332 562,073 2,680 The following table presents information regarding securities with unrealized losses at December 31, 2019: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 4,992 8 — — 4,992 8 Mortgage-backed securities 77,274 293 50,851 382 128,125 675 Corporate bonds — — 915 85 915 85 State and local governments — — 934 3 934 3 Total temporarily impaired securities $ 82,266 301 52,700 470 134,966 771 |
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 December 31, 2020, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Securities Held to Maturity ($ in thousands) Amortized Fair Amortized Fair Debt securities Due within one year $ — — $ 2,087 2,101 Due after one year but within five years 28,670 30,265 2,915 3,008 Due after five years but within ten years 74,016 74,400 3,418 3,536 Due after ten years 11,000 10,761 129,172 131,189 Mortgage-backed securities 1,318,998 1,337,706 29,959 30,900 Total securities $ 1,432,684 1,453,132 $ 167,551 170,734 |
Loans and Asset Quality Infor_2
Loans and Asset Quality Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Major Categories of Total Loans Outstanding | The following is a summary of the major categories of total loans outstanding: ($ in thousands) December 31, 2020 December 31, 2019 Amount Percentage Amount Percentage All loans: Commercial, financial, and agricultural $ 782,549 17 % $ 504,271 11 % Real estate – construction, land development & other land loans 570,672 12 % 530,866 12 % Real estate – mortgage – residential (1-4 family) first mortgages 972,378 21 % 1,105,014 25 % Real estate – mortgage – home equity loans / lines of credit 306,256 6 % 337,922 8 % Real estate – mortgage – commercial and other 2,049,203 43 % 1,917,280 43 % Consumer loans 53,955 1 % 56,172 1 % Subtotal 4,735,013 100 % 4,451,525 100 % Unamortized net deferred loan costs (fees) (3,698) 1,941 Total loans $ 4,731,315 $ 4,453,466 ($ in thousands) December 31, December 31, Guaranteed portions of non-PPP SBA Loans included in table above $ 33,959 54,400 Unguaranteed portions of SBA Loans included in table above 135,703 110,782 Total non-PPP SBA loans included in the table above $ 169,662 165,182 Sold portions of SBA loans with servicing retained - not included in table above $ 395,398 316,730 |
Schedule of Activity in Purchased Credit Impaired Loans | The following table presents changes in the carrying value of PCI loans. ($ in thousands) Purchased Credit Impaired Loans For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, Balance at beginning of period $ 12,664 17,393 23,165 Change due to payments received and accretion (4,087) (4,863) (5,799) Change due to loan charge-offs (13) (11) (4) Transfers to foreclosed real estate — — (10) Other 27 145 41 Balance at end of period $ 8,591 12,664 17,393 The following table presents changes in the accretable yield for PCI loans. ($ in thousands) Accretable Yield for PCI loans For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, Balance at beginning of period $ 4,149 4,750 4,688 Accretion (1,119) (1,486) (2,050) Reclassification from (to) nonaccretable difference 413 617 849 Other, net (545) 268 1,263 Balance at end of period $ 2,898 4,149 4,750 |
Schedule of Nonperforming Assets and Nonaccrual Loans | Nonperforming assets are defined as nonaccrual loans, troubled debt restructurings, loans past due 90 or more days and still accruing interest, and foreclosed real estate. Nonperforming assets are summarized as follows: ASSET QUALITY DATA ($ in thousands) December 31, December 31, Nonperforming assets Nonaccrual loans $ 35,076 24,866 Restructured loans - accruing 9,497 9,053 Accruing loans > 90 days past due — — Total nonperforming loans 44,573 33,919 Foreclosed properties 2,424 3,873 Total nonperforming assets $ 46,997 37,792 Purchased credit impaired loans not included above (1) $ 8,591 12,664 (1) In the March 3, 2017 acquisition of Carolina Bank. and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired $19.3 million and $9.9 million, respectively, in PCI loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.7 million and $0.8 million in PCI loans at December 31, 2020 and 2019, respectively, that are contractually past due 90 days or more. The following is a summary the Company’s nonaccrual loans by major categories. ($ in thousands) December 31, December 31, Commercial, financial, and agricultural $ 9,681 5,518 Real estate – construction, land development & other land loans 643 1,067 Real estate – mortgage – residential (1-4 family) first mortgages 6,048 7,552 Real estate – mortgage – home equity loans / lines of credit 1,333 1,797 Real estate – mortgage – commercial and other 17,191 8,820 Consumer loans 180 112 Total $ 35,076 24,866 |
Schedule of Analysis of Payment Status | The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2020. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 1,464 1,101 — 9,681 770,166 782,412 Real estate – construction, land development & other land loans 572 — — 643 569,307 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 10,146 869 — 6,048 951,088 968,151 Real estate – mortgage – home equity loans / lines of credit 1,088 42 — 1,333 303,693 306,156 Real estate – mortgage – commercial and other 2,540 3,111 — 17,191 2,022,422 2,045,264 Consumer loans 180 36 — 180 53,521 53,917 Purchased credit impaired 328 112 719 — 7,432 8,591 Total $ 16,318 5,271 719 35,076 4,677,629 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2019. ($ in thousands) Accruing Accruing 60- Accruing 90 Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 752 — — 5,518 497,788 504,058 Real estate – construction, land development & other land loans 37 152 — 1,067 529,444 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 10,858 5,056 — 7,552 1,076,205 1,099,671 Real estate – mortgage – home equity loans / lines of credit 770 300 — 1,797 334,832 337,699 Real estate – mortgage – commercial and other 4,257 — — 8,820 1,897,573 1,910,650 Consumer loans 344 137 — 112 55,490 56,083 Purchased credit impaired 218 38 762 — 11,646 12,664 Total $ 17,236 5,683 762 24,866 4,402,978 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 |
Schedule of Allowance for Loan Losses | The following table presents the activity in the allowance for loan losses for the year ended December 31, 2020. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2020 Beginning balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Charge-offs (5,608) (51) (478) (524) (968) (873) — (8,502) Recoveries 745 1,552 754 487 621 294 — 4,453 Provisions 11,626 1,878 3,940 1,285 15,012 1,085 213 35,039 Ending balance $ 11,316 5,355 8,048 2,375 23,603 1,478 213 52,388 Ending balances as of December 31, 2020: Allowance for loan losses Individually evaluated for impairment $ 3,546 30 800 — 2,175 — — 6,551 Collectively evaluated for impairment $ 7,742 5,325 7,141 2,375 21,428 1,475 213 45,699 Purchased credit impaired $ 28 — 107 — — 3 — 138 Loans receivable as of December 31, 2020: Ending balance – total $ 782,549 570,672 972,378 306,256 2,049,203 53,955 — 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans $ 4,731,315 Ending balances as of December 31, 2020: Loans Individually evaluated for impairment $ 7,700 677 9,303 15 18,582 4 — 36,281 Collectively evaluated for impairment $ 774,712 569,845 958,848 306,141 2,026,682 53,913 — 4,690,141 Purchased credit impaired $ 137 150 4,227 100 3,939 38 — 8,591 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2019. ($ in thousands) Commercial, Real Estate – Real Estate – Real Estate Real Estate Consumer loans Unallocated Total As of and for the year ended December 31, 2019 Beginning balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Charge-offs (2,473) (553) (657) (307) (1,556) (757) — (6,303) Recoveries 980 1,275 705 629 575 235 — 4,399 Provisions 3,157 (989) (1,413) (860) 1,936 542 (110) 2,263 Ending balance $ 4,553 1,976 3,832 1,127 8,938 972 — 21,398 Ending balances as of December 31, 2019: Allowance for loan losses Individually evaluated for impairment $ 1,791 50 750 — 983 — — 3,574 Collectively evaluated for impairment $ 2,720 1,926 2,976 1,127 7,931 961 — 17,641 Purchased credit impaired $ 42 — 106 — 24 11 — 183 Loans receivable as of December 31, 2019: Ending balance – total $ 504,271 530,866 1,105,014 337,922 1,917,280 56,172 — 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans $ 4,453,466 Ending balances as of December 31, 2019: Loans Individually evaluated for impairment $ 4,957 796 9,546 333 9,570 — — 25,202 Collectively evaluated for impairment $ 499,101 529,904 1,090,125 337,366 1,901,080 56,083 — 4,413,659 Purchased credit impaired $ 213 166 5,343 223 6,630 89 — 12,664 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018. ($ in thousands) Commercial, Real Estate – Real Estate Real Estate Real Estate Consumer loans Unallo- Total As of and for the year ended December 31, 2018 Beginning balance $ 3,111 2,816 6,147 1,827 6,475 950 1,972 23,298 Charge-offs (2,128) (158) (1,734) (711) (1,459) (781) — (6,971) Recoveries 1,195 4,097 833 364 1,503 309 — 8,301 Provisions 711 (4,512) (49) 185 1,464 474 (1,862) (3,589) Ending balance $ 2,889 2,243 5,197 1,665 7,983 952 110 21,039 Ending balances as of December 31, 2018: Allowance for loan losses Individually evaluated for impairment $ 226 134 955 48 906 — — 2,269 Collectively evaluated for impairment $ 2,661 2,109 4,143 1,608 7,070 941 110 18,642 Purchased credit impaired $ 2 — 99 9 7 11 — 128 Loans receivable as of December 31, 2018: Ending balance – total $ 457,037 518,976 1,054,176 359,162 1,787,022 71,392 — 4,247,765 Unamortized net deferred loan (fees) costs 1,299 Total loans 4,249,064 Ending balances as of December 31, 2018: Loans Individually evaluated for impairment $ 696 1,345 12,391 296 9,525 — — 24,253 Collectively evaluated for impairment $ 456,111 517,453 1,035,532 358,522 1,767,361 71,140 — 4,206,119 Purchased credit impaired $ 230 178 6,253 344 10,136 252 — 17,393 |
Schedule of Loans Individually Evaluated for Impairment | The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2020. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 3,688 4,325 — 750 Real estate – mortgage – construction, land development & other land loans 554 694 — 308 Real estate – mortgage – residential (1-4 family) first mortgages 4,115 4,456 — 4,447 Real estate – mortgage –home equity loans / lines of credit 15 27 — 264 Real estate – mortgage –commercial and other 11,763 13,107 — 9,026 Consumer loans 4 4 — 1 Total impaired loans with no allowance $ 20,139 22,613 — 14,796 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,012 4,398 3,546 5,139 Real estate – mortgage – construction, land development & other land loans 123 131 30 502 Real estate – mortgage – residential (1-4 family) first mortgages 5,188 5,361 800 5,186 Real estate – mortgage –home equity loans / lines of credit — — — 21 Real estate – mortgage –commercial and other 6,819 7,552 2,175 5,786 Consumer loans — — — — Total impaired loans with allowance $ 16,142 17,442 6,551 16,634 The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2019. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 16 19 — 74 Real estate – mortgage – construction, land development & other land loans 221 263 — 366 Real estate – mortgage – residential (1-4 family) first mortgages 4,300 4,539 — 4,415 Real estate – mortgage –home equity loans / lines of credit 333 357 — 147 Real estate – mortgage –commercial and other 2,643 3,328 — 3,240 Consumer loans — — — — Total impaired loans with no allowance $ 7,513 8,506 — 8,242 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 4,941 4,995 1,791 1,681 Real estate – mortgage – construction, land development & other land loans 575 575 50 586 Real estate – mortgage – residential (1-4 family) first mortgages 5,246 5,469 750 6,206 Real estate – mortgage –home equity loans / lines of credit — — — 55 Real estate – mortgage –commercial and other 6,927 7,914 983 5,136 Consumer loans — — — — Total impaired loans with allowance $ 17,689 18,953 3,574 13,664 The following table presents loans individually evaluated for impairment by class of loans, excluding purchased credit impaired loans, as of December 31, 2018. Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 310 310 — 957 Real estate – mortgage – construction, land development & other land loans 485 803 — 2,366 Real estate – mortgage – residential (1-4 family) first mortgages 4,626 4,948 — 4,804 Real estate – mortgage –home equity loans / lines of credit 22 31 — 91 Real estate – mortgage –commercial and other 3,475 4,237 — 3,670 Consumer loans — — — — Total impaired loans with no allowance $ 8,918 10,329 — 11,888 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 386 387 226 422 Real estate – mortgage – construction, land development & other land loans 860 864 134 385 Real estate – mortgage – residential (1-4 family) first mortgages 7,765 7,904 955 8,963 Real estate – mortgage –home equity loans / lines of credit 274 275 48 184 Real estate – mortgage –commercial and other 6,050 6,054 906 5,911 Consumer loans — — — 2 Total impaired loans with allowance $ 15,335 15,484 2,269 15,867 |
Schedule of Recorded Investment in Loans by Credit Quality Indicators | The following describes the Company’s internal risk grades in ascending order of likelihood of loss: Risk Grade Description Pass: 1 Loans with virtually no risk, including cash secured loans. 2 Loans with documented significant overall financial strength. These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation. 3 Loans with documented satisfactory overall financial strength. These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances. 4 Loans to borrowers with acceptable financial condition. These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability. 5 Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management. Collateral is generally available and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. P Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. Special Mention: 6 Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. Classified: 7 An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. 8 Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. 9 Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. F Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2020. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 762,091 9,553 1,087 9,681 782,412 Real estate – construction, land development & other land loans 560,845 7,877 1,157 643 570,522 Real estate – mortgage – residential (1-4 family) first mortgages 943,455 7,609 11,039 6,048 968,151 Real estate – mortgage – home equity loans / lines of credit 297,795 1,468 5,560 1,333 306,156 Real estate – mortgage – commercial and other 1,988,684 34,588 4,801 17,191 2,045,264 Consumer loans 53,488 80 169 180 53,917 Purchased credit impaired 6,901 85 1,605 — 8,591 Total $ 4,613,259 61,260 25,418 35,076 4,735,013 Unamortized net deferred loan (fees) costs (3,698) Total loans 4,731,315 The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2019. ($ in thousands) Pass Special Mention Classified Classified Total Commercial, financial, and agricultural $ 486,081 7,998 4,461 5,518 504,058 Real estate – construction, land development & other land loans 522,767 4,075 2,791 1,067 530,700 Real estate – mortgage – residential (1-4 family) first mortgages 1,063,735 13,187 15,197 7,552 1,099,671 Real estate – mortgage – home equity loans / lines of credit 328,903 1,258 5,741 1,797 337,699 Real estate – mortgage – commercial and other 1,873,594 20,800 7,436 8,820 1,910,650 Consumer loans 55,203 413 355 112 56,083 Purchased credit impaired 8,098 2,590 1,976 — 12,664 Total $ 4,338,381 50,321 37,957 24,866 4,451,525 Unamortized net deferred loan (fees) costs 1,941 Total loans 4,453,466 |
Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring | The following table presents information related to loans modified in a TDR during the year ended December 31, 2020. ($ in thousands) For the year ended December 31, 2020 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 143 $ 143 Real estate – construction, land development & other land loans 1 67 67 Real estate – mortgage – residential (1-4 family) first mortgages 2 75 78 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans 1 4 4 TDRs – Nonaccrual Commercial, financial, and agricultural 1 72 72 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 5 5,977 5,977 Consumer loans — — — Total TDRs arising during period 12 $ 6,338 $ 6,341 The following table presents information related to loans modified in a TDR during the year ended December 31, 2019. ($ in thousands) For the year ended December 31, 2019 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural 2 $ 395 $ 395 Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 3 387 391 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other 1 274 274 Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages — — — Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 1,056 $ 1,060 The following table presents information related to loans modified in a TDR during the year ended December 31, 2018. ($ in thousands) For the year ended December 31, 2018 Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — Real estate – construction, land development & other land loans — — — Real estate – mortgage – residential (1-4 family) first mortgages 2 254 273 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — Real estate – construction, land development & other land loans 1 61 61 Real estate – mortgage – residential (1-4 family) first mortgages 3 340 350 Real estate – mortgage – home equity loans / lines of credit — — — Real estate – mortgage – commercial and other — — — Consumer loans — — — Total TDRs arising during period 6 $ 655 $ 684 Accruing TDRs that were modified in the previous 12 months and that defaulted during the years ended December 31, 2020, 2019, and 2018 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate. ($ in thousands) For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Number of Recorded Number of Recorded Number of Recorded Accruing TDRs that subsequently defaulted Real estate – mortgage – residential (1-4 family first mortgages) — $ — 1 $ 93 1 $ 60 Real estate – mortgage – commercial and other 1 274 — — 3 1,333 Total accruing TDRs that subsequently defaulted 1 $ 274 1 $ 93 4 $ 1,393 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at December 31, 2020 and 2019 consisted of the following: ($ in thousands) 2020 2019 Land $ 38,584 38,164 Buildings 103,232 93,738 Furniture and equipment 30,097 33,110 Leasehold improvements 3,054 2,195 Total cost 174,967 167,207 Less accumulated depreciation and amortization (54,465) (52,348) Total premises and equipment $ 120,502 114,859 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and December 31, 2019 and the carrying amount of unamortizable intangible assets as of those same dates. December 31, 2020 December 31, 2019 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amortizable intangible assets: Customer lists $ 7,613 2,814 6,013 2,185 Core deposit intangibles 28,440 23,832 28,440 20,610 SBA servicing asset 9,976 4,188 7,776 2,393 Other 1,403 1,232 1,303 1,127 Total $ 47,432 32,066 43,532 26,315 Unamortizable intangible assets: Goodwill $ 239,272 234,368 |
Schedule of the Estimated Amortization Expense | The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets for each of the five calendar years ending December 31, 2025 and the estimated amount amortizable thereafter. 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 amortizable intangible assets. ($ in thousands) Estimated 2021 $ 3,272 2022 2,367 2023 1,386 2024 741 2025 562 Thereafter 1,250 Total $ 9,578 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense for the years ended December 31, 2020, 2019, and 2018 are as follows: ($ in thousands) 2020 2019 2018 Current - Federal $ 27,799 19,920 19,188 - State 3,909 2,499 3,187 Deferred - Federal (8,893) 1,572 1,658 - State (1,161) 239 156 Total $ 21,654 24,230 24,189 |
Schedule of Deferred Tax Assets and Liabilities | The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2020 and 2019 are presented below: ($ in thousands) 2020 2019 Deferred tax assets: Allowance for loan losses $ 12,031 4,916 Excess book over tax pension plan cost 367 241 Deferred compensation 257 293 Federal & state net operating loss and tax credit carryforwards 282 376 Accruals, book versus tax 3,232 2,833 Pension liability adjustments 418 710 Foreclosed real estate 123 87 Basis differences in assets acquired in FDIC transactions 647 416 Equity compensation 661 370 Partnership investments 258 254 Leases 120 — SBA servicing asset 358 400 All other 3 3 Gross deferred tax assets 18,757 10,899 Less: Valuation allowance (14) (40) Net deferred tax assets 18,743 10,859 Deferred tax liabilities: Loan fees (1,011) (2,428) Depreciable basis of fixed assets (4,809) (4,995) Amortizable basis of intangible assets (7,965) (7,844) FHLB stock dividends (236) (472) Trust preferred securities (473) (548) Purchase accounting adjustments — (84) Unrealized gain on securities available for sale (4,699) (2,239) Gross deferred tax liabilities (19,193) (18,610) Net deferred tax liability - included in other liabilities $ (450) (7,751) |
Schedule of Effective Tax Rate Reconciliation | The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2020 and December 31, 2019 and December 31, 2018, to the income tax provision reported in the financial statements. ($ in thousands) 2020 2019 2018 Tax provision at statutory rate $ 21,657 24,418 23,830 Increase (decrease) in income taxes resulting from: Tax-exempt interest income (1,050) (1,186) (1,117) Low income housing tax credits (772) (756) (698) Bank-owned life insurance income (532) (538) (532) Non-deductible interest expense 23 43 27 State income taxes, net of federal benefit 2,117 2,178 2,639 Change in valuation allowance (20) 4 (8) Impact of tax reform — (73) — Other, net 231 140 48 Total $ 21,654 21654000 $ 24,230 $ 24,189 |
Time Deposits and Related Par_2
Time Deposits and Related Party Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Maturities of Time Deposits | At December 31, 2020, the scheduled maturities of time deposits were as follows: ($ in thousands) 2021 $ 681,719 2022 63,423 2023 21,070 2024 8,217 2025 15,829 Thereafter 674 $ 790,932 |
Borrowings and Borrowings Ava_2
Borrowings and Borrowings Availability (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables present information regarding the Company’s outstanding borrowings at December 31, 2020 and 2019 - dollars are in thousands: Description – 2020 Due date Call Feature 2020 Amount Interest Rate FHLB Principal Reducing Credit 7/24/2023 None 124 1.00% fixed FHLB Principal Reducing Credit 12/22/2023 None 991 1.25% fixed FHLB Principal Reducing Credit 1/15/2026 None 5,500 1.98% fixed FHLB Principal Reducing Credit 6/26/2028 None 235 0.25% fixed FHLB Principal Reducing Credit 7/17/2028 None 49 0.00% fixed FHLB Principal Reducing Credit 8/18/2028 None 174 1.00% fixed FHLB Principal Reducing Credit 8/22/2028 None 174 1.00% fixed FHLB Principal Reducing Credit 12/20/2028 None 355 0.50% fixed Other Borrowing 4/7/2022 None 103 1.00% fixed Trust Preferred Securities 1/23/2034 Quarterly by Company 20,620 2.91% at 12/31/2020 Trust Preferred Securities 6/15/2036 Quarterly by Company 25,774 1.61% at 12/31/2020 Trust Preferred Securities 1/7/2035 Quarterly by Company 10,310 2.24% at 12/31/2020 Total borrowings / weighted average rate as of December 31, 2020 $ 64,409 2.22% Unamortized discount on acquired borrowings (2,580) Total borrowings $ 61,829 Description – 2019 Due date Call Feature 2019 Amount Interest Rate FHLB Term Note 1/30/2020 None $ 100,000 1.70% fixed FHLB Term Note 1/31/2020 None 68,000 1.70% fixed FHLB Term Note 1/31/2020 None 30,000 1.70% fixed FHLB Term Note 5/29/2020 None 40,000 1.62% fixed FHLB Principal Reducing Credit 7/24/2023 None 168 1.00% fixed FHLB Principal Reducing Credit 12/22/2023 None 1,029 1.25% fixed FHLB Principal Reducing Credit 1/15/2026 None 6,500 1.98% fixed FHLB Principal Reducing Credit 6/26/2028 None 245 0.25% fixed FHLB Principal Reducing Credit 7/17/2028 None 55 0.00% fixed FHLB Principal Reducing Credit 8/18/2028 None 181 1.00% fixed FHLB Principal Reducing Credit 8/22/2028 None 181 1.00% fixed FHLB Principal Reducing Credit 12/20/2028 None 367 0.50% fixed Trust Preferred Securities 1/23/2034 Quarterly by Company 20,620 4.64% at 12/31/2019 Trust Preferred Securities 6/15/2036 Quarterly by Company 25,774 3.28% at 12/31/2019 Trust Preferred Securities 1/7/2035 Quarterly by Company 10,310 3.99% at 12/31/2019 Total borrowings / weighted average rate as of December 31, 2019 $ 303,430 2.68% Unamortized discount on acquired borrowings (2,759) Total borrowings $ 300,671 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 are as follows: ($ in thousands) Year ending December 31: 2021 $ 2,245 2022 1,832 2023 1,673 2024 1,472 2025 1,242 Thereafter 18,272 Total undiscounted lease payments 26,736 Less effect of discounting (8,868) Present value of estimated lease payments (lease liability) $ 17,868 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Reconciliation of Benefit Obligation | The following table reconciles the beginning and ending balances of the Pension Plan’s benefit obligation, as computed by the Company’s independent actuarial consultants, and its plan assets, with the difference between the two amounts representing the funded status of the Pension Plan as of the end of the respective year. ($ in thousands) 2020 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 41,592 36,354 38,150 Service cost — — — Interest cost 1,223 1,482 1,312 Actuarial loss (gain) 3,788 5,492 (1,160) Benefits paid (1,853) (1,736) (1,948) Benefit obligation at end of year 44,750 41,592 36,354 Change in plan assets Plan assets at beginning of year 43,824 39,170 41,306 Actual return on plan assets 6,196 6,390 (188) Employer contributions — — — Benefits paid (1,853) (1,736) (1,948) Plan assets at end of year 48,167 43,824 39,170 Funded status at end of year $ 3,417 2,232 2,816 The following table reconciles the beginning and ending balances of the SERP’s benefit obligation, as computed by the Company’s independent actuarial consultants: ($ in thousands) 2020 2019 2018 Change in benefit obligation Projected benefit obligation at beginning of year $ 5,638 5,794 5,970 Service cost — — 124 Interest cost 158 219 200 Actuarial (gain) loss 517 23 (102) Benefits paid (331) (398) (398) Projected benefit obligation at end of year 5,982 5,638 5,794 Plan assets — — — Funded status at end of year $ (5,982) (5,638) (5,794) |
Schedule of Amounts Recognized in Balance Sheet | The following table presents information regarding the amounts recognized in the consolidated balance sheets at December 31, 2020 and 2019 as it relates to the Pension Plan, excluding the related deferred tax assets. ($ in thousands) 2020 2019 Other assets $ 3,417 2,232 The following table presents information regarding the amounts recognized in the consolidated balance sheets at December 31, 2020 and 2019 as it relates to the SERP, excluding the related deferred tax assets. ($ in thousands) 2020 2019 Other liabilities $ (5,982) (5,638) |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table presents information regarding the amounts recognized in accumulated other comprehensive income (loss) (“AOCI”) at December 31, 2020 and 2019, as it relates to the Pension Plan. ($ in thousands) 2020 2019 Net loss $ (1,771) (3,721) Prior service cost — — Amount recognized in AOCI before tax effect (1,771) (3,721) Tax benefit 407 855 Net amount recognized as decrease to AOCI $ (1,364) (2,866) The following table presents information regarding the amounts recognized in AOCI at December 31, 2020 and 2019, as it relates to the SERP: ($ in thousands) 2020 2019 Net (loss) gain $ (46) 629 Prior service cost — — Amount recognized in AOCI before tax effect (46) 629 Tax expense 11 (145) Net amount recognized as (decrease) increase to AOCI $ (35) 484 |
Schedule of Reconciliation of Balances in AOCI | The following table reconciles the beginning and ending balances of AOCI at December 31, 2020 and 2019, as it relates to the Pension Plan: ($ in thousands) 2020 2019 Accumulated other comprehensive loss at beginning of fiscal year $ (2,866) (3,091) Net gain (loss) arising during period 1,107 (664) Amortization of unrecognized actuarial loss 843 977 Tax benefit of changes during the year, net (448) (88) Accumulated other comprehensive loss at end of fiscal year $ (1,364) (2,866) The following table reconciles the beginning and ending balances of AOCI at December 31, 2020 and 2019, as it relates to the SERP: ($ in thousands) 2020 2019 Accumulated other comprehensive income (loss) at beginning of fiscal year $ 484 624 Net (loss) gain arising during period (517) (22) Prior service cost — — Amortization of unrecognized actuarial gain (157) (163) Amortization of prior service cost and transition obligation — — Tax expense related to changes during the year, net 155 45 Accumulated other comprehensive income (loss) at end of fiscal year $ (35) 484 |
Schedule of Reconciliation of Prepaid Pension Costs | The following table reconciles the beginning and ending balances of the prepaid pension cost related to the Pension Plan: ($ in thousands) 2020 2019 Prepaid pension cost as of beginning of fiscal year $ 5,954 6,851 Net periodic pension cost for fiscal year (766) (897) Actual employer contributions — — Prepaid pension asset as of end of fiscal year $ 5,188 5,954 The following table reconciles the beginning and ending balances of the prepaid pension cost related to the SERP: ($ in thousands) 2020 2019 Accrued liability as of beginning of fiscal year $ (6,266) (6,608) Net periodic pension cost for fiscal year (1) (56) Benefits paid 331 398 Accrued liability as of end of fiscal year $ (5,936) (6,266) |
Schedule of Net Pension Costs | Net pension cost for the Pension Plan included the following components for the years ended December 31, 2020, 2019, and 2018: ($ in thousands) 2020 2019 2018 Service cost – benefits earned during the period $ — — — Interest cost on projected benefit obligation 1,223 1,482 1,312 Expected return on plan assets (1,300) (1,562) (1,115) Net amortization and deferral 843 977 34 Net periodic pension cost $ 766 897 231 Net pension cost for the SERP included the following components for the years ended December 31, 2020, 2019, and 2018: ($ in thousands) 2020 2019 2018 Service cost – benefits earned during the period $ — — 124 Interest cost on projected benefit obligation 158 219 200 Net amortization and deferral (157) (163) (13) Net periodic pension cost $ 1 56 311 |
Schedule of Expected Benefit Payments | The following table is an estimate of the benefits that will be paid in accordance with the Pension Plan during the indicated time periods, assuming the Pension Plan is operated on an ongoing basis. ($ in thousands) Estimated Year ending December 31, 2021 $ 1,843 Year ending December 31, 2022 1,918 Year ending December 31, 2023 1,977 Year ending December 31, 2024 2,021 Year ending December 31, 2025 2,085 Years ending December 31, 2026-2030 10,891 The following table is an estimate of the benefits that will be paid in accordance with the SERP during the indicated time periods: ($ in thousands) Estimated Year ending December 31, 2021 $ 330 Year ending December 31, 2022 326 Year ending December 31, 2023 322 Year ending December 31, 2024 318 Year ending December 31, 2025 340 Years ending December 31, 2026-2030 1,719 |
Schedule of Pension Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2020, by asset category, were as follows: ($ in thousands) Total Fair Value at December 31, Quoted Prices in Significant Other Significant Cash and cash equivalents $ 337 — 337 — Investment funds Fixed income funds 47,830 — 47,830 — Total $ 48,167 — 48,167 — The fair values of the Company’s pension plan assets at December 31, 2019, by asset category, were as follows: ($ in thousands) Total Fair Value at December 31, Quoted Prices in Significant Other Significant Cash and cash equivalents $ 274 — 274 — Investment funds Fixed income funds 43,550 — 43,550 — Total $ 43,824 — 43,824 — |
Schedule of Assumptions Used in Determining Actuarial Information | The following assumptions were used in determining the actuarial information for the Pension Plan and the SERP for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Pension SERP Pension SERP Pension SERP Discount rate used to determine net periodic pension cost 3.03 % 2.89 % 4.08 % 3.92 % 3.46 % 3.46 % Discount rate used to calculate end of year liability disclosures 2.24 % 2.04 % 3.03 % 2.89 % 4.08 % 3.92 % Expected long-term rate of return on assets 3.03 % n/a 4.08 % n/a 2.75 % n/a Rate of compensation increase n/a n/a n/a n/a n/a n/a |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Outstanding Loan Commitments | The following table presents the Company’s outstanding loan commitments at December 31, 2020 and December 31, 2019. ($ in thousands) December 31, 2020 December 31, 2019 Type of Commitment Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Loan commitments $ 238,745 94,218 332,963 263,775 123,169 386,944 Unused lines of credit 188,014 900,046 1,088,060 169,278 766,450 935,728 Total $ 426,759 994,264 1,421,023 433,053 889,619 1,322,672 |
Schedule of Maximum Credit Risk for Securities | The following are the fair values at December 31, 2020 of securities to any one issuer/guarantor that exceed $5.0 million, with such amounts representing the maximum amount of credit risk that the Company would incur if the issuer did not repay the obligation. ( $ in thousands ) Issuer Amortized Cost Fair Value Fannie Mae – mortgage-backed securities $ 571,245 585,035 Freddie Mac – mortgage-backed securities 549,811 552,830 Ginnie Mae – mortgage-backed securities 234,780 237,159 Federal Farm Credit Bank – bonds 40,015 40,356 Federal Home Loan Bank system - bonds 30,000 29,850 Small Business Administration securities 22,150 22,436 Federal Reserve Bank - common stock 17,671 17,671 First Citizens Bank – corporate bonds 11,000 10,999 Bank of America corporate bonds 7,000 7,409 Citigroup, Inc. corporate bonds 6,014 6,346 Federal Home Loan Bank of Atlanta - common stock 5,855 5,855 Loudoun County, Virginia - municipal bond 5,599 5,735 Goldman Sachs Group Inc. corporate bond 5,037 5,319 JP Morgan Chase corporate bond 5,009 5,294 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020. ($ in thousands) Description of Financial Instruments Fair Value at December 31, Quoted Prices in Significant Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 70,206 — 70,206 — Mortgage-backed securities 1,337,706 — 1,337,706 — Corporate bonds 45,220 — 45,220 — Total available for sale securities $ 1,453,132 — 1,453,132 — Presold mortgages in process of settlement $ 42,271 42,271 — — Nonrecurring Impaired loans $ 22,142 — — 22,142 Foreclosed real estate 1,484 — — 1,484 The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2019. ($ in thousands) Description of Financial Instruments Fair Value at December 31, Quoted Prices in Significant Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 20,009 — 20,009 — Mortgage-backed securities 767,285 — 767,285 — Corporate bonds 34,651 — 34,651 — Total available for sale securities $ 821,945 — 821,945 — Presold mortgages in process of settlement $ 19,712 19,712 — — Nonrecurring Impaired loans $ 16,215 — — 16,215 Foreclosed real estate 1,830 — — 1,830 |
Schedule of Significant Unobservable Inputs | For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at December 31, Valuation Significant Unobservable Range (Weighted Average) Impaired loans - valued at collateral value $ 16,000 Appraised value Discounts applied for estimated costs to sell 10% Impaired loans - valued at PV of expected cash flows $ 6,142 PV of expected cash flows Discount rates used in the calculation of PV of expected cash flows 4-11% (6.21%) Foreclosed real estate 1,484 Appraised value Discounts for estimated costs to sell 10% For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at December 31, Valuation Significant Unobservable Range (Weighted Average) Impaired loans - valued at collateral value $ 10,718 Appraised value Discounts applied for estimated costs to sell 10% Impaired loans - valued at PV of expected cash flows $ 5,497 PV of expected cash flows Discount rates used in the calculation of PV of expected cash flows 4-11% (6.50%) Foreclosed real estate 1,830 Appraised value Discounts for estimated costs to sell 10% |
Schedule of the Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not carried at fair value as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Level in Carrying Estimated Carrying Estimated Cash and due from banks, noninterest-bearing Level 1 $ 93,724 93,724 64,519 64,519 Due from banks, interest-bearing Level 1 273,566 273,566 166,783 166,783 Securities held to maturity Level 2 167,551 170,734 67,932 68,333 SBA loans held for sale Level 2 6,077 7,465 — — Total loans, net of allowance Level 3 4,678,927 4,661,197 4,432,068 4,407,610 Accrued interest receivable Level 1 20,272 20,272 16,648 16,648 Bank-owned life insurance Level 1 106,974 106,974 104,441 104,441 SBA servicing asset Level 3 5,788 6,569 5,383 5,649 Deposits Level 2 6,273,596 6,275,329 4,931,355 4,930,751 Borrowings Level 2 61,829 53,321 300,671 295,399 Accrued interest payable Level 2 904 904 2,154 2,154 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Outstanding Restricted Stock | The following table presents information regarding the activity during 2018, 2019, and 2020 related to the Company’s outstanding restricted stock: Long-Term Restricted Stock Shares Grant Date Fair Value Nonvested at January 1, 2018 103,063 $ 24.08 Granted during the period 66,060 40.04 Vested during the period (35,703) 22.82 Forfeited or expired during the period (4,169) 29.99 Nonvested at December 31, 2018 129,251 $ 32.39 Granted during the period 82,826 36.36 Vested during the period (51,757) 25.02 Forfeited or expired during the period (954) 41.93 Nonvested at December 31, 2019 159,366 $ 36.79 Granted during the period 68,704 26.96 Vested during the period (55,965) 33.91 Forfeited or expired during the period — — Nonvested at December 31, 2020 172,105 $ 33.80 |
Schedule of Company's Stock Options Outstanding | The following table presents information regarding the activity since January 1, 2018 related to all of the Company’s stock options outstanding: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at January 1, 2018 38,689 $ 16.09 Granted — — Exercised (29,689) 16.61 $ 659,743 Forfeited — — Expired — — Balance at December 31, 2018 9,000 $ 14.35 Granted — — Exercised (9,000) 14.35 $ 203,963 Forfeited — — Expired — — Balance at December 31, 2019 — $ — Granted — — Exercised — — $ — Forfeited — — Expired — — Outstanding at December 31, 2020 — $ — — $ — Exercisable at December 31, 2020 — $ — — $ — |
Regulatory Restrictions (Tables
Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Capital Ratios | Actual Fully Phased-In Regulatory To Be Well Capitalized ($ in thousands) Amount Ratio Amount Ratio Amount Ratio (must equal or exceed) (must equal or exceed) As of December 31, 2020 Common Equity Tier I Capital Ratio Company $ 639,369 13.19 % $ 339,251 7.00 % $ N/A N/A Bank 682,312 14.08 % 339,125 7.00 % 314,902 6.50 % Total Capital Ratio Company 744,835 15.37 % 508,876 10.50 % N/A N/A Bank 735,282 15.18 % 508,688 10.50 % 484,465 10.00 % Tier I Capital Ratio Company 691,865 14.28 % 411,947 8.50 % N/A N/A Bank 682,312 14.08 % 411,795 8.50 % 387,572 8.00 % Leverage Ratio Company 691,865 9.88 % 280,039 4.00 % N/A N/A Bank 682,312 9.75 % 280,003 4.00 % 350,004 5.00 % As of December 31, 2019 Common Equity Tier I Capital Ratio Company $ 610,642 13.28 % $ 321,994 7.00 % $ N/A N/A Bank 661,234 14.38 % 321,866 7.00 % 298,875 6.50 % Total Capital Ratio Company 684,931 14.89 % 482,991 10.50 % N/A N/A Bank 683,178 14.86 % 482,799 10.50 % 459,808 10.00 % Tier I Capital Ratio Company 662,987 14.41 % 390,993 8.50 % N/A N/A Bank 661,234 14.38 % 390,837 8.50 % 367,846 8.00 % Leverage Ratio Company 662,987 11.19 % 236,904 4.00 % N/A N/A Bank 661,234 11.17 % 236,700 4.00 % 295,875 5.00 % |
Supplementary Income Statemen_2
Supplementary Income Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Other Noninterest Income/Expense | Components of other noninterest income/expense exceeding 1% of total revenue for any of the years ended December 31, 2020, 2019, and 2018 are as follows: ($ in thousands) 2020 2019 2018 Other service charges, commissions, and fees – interchange fees, net $ 14,142 13,814 11,995 Other operating expenses – dues and subscriptions (includes software subscriptions) 4,764 4,250 3,431 Other operating expenses – data processing expense 3,157 3,130 3,234 Other operating expenses – telephone and data line expense 2,893 3,057 3,024 Other operating expenses – marketing 1,960 2,727 3,065 |
Condensed Parent Company Info_2
Condensed Parent Company Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed financial data for First Bancorp (parent company only) follows: CONDENSED BALANCE SHEETS As of December 31, ($ in thousands) 2020 2019 Assets Cash on deposit with bank subsidiary $ 15,284 2,014 Investment in wholly-owned subsidiaries, at equity 938,294 904,924 Premises and Equipment 7 7 Other assets (164) 5,642 Total assets 953,421 912,587 Liabilities and shareholders’ equity Trust preferred securities 54,200 54,049 Other liabilities 5,800 6,137 Total liabilities 60,000 60,186 Shareholders’ equity 893,421 852,401 Total liabilities and shareholders’ equity $ 953,421 912,587 |
Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME Year Ended December 31, ($ in thousands) 2020 2019 2018 Dividends from wholly-owned subsidiaries $ 63,100 29,800 15,525 Earnings of wholly-owned subsidiaries, net of dividends 20,899 65,555 77,050 Interest expense (1,743) (2,648) (2,498) All other income and expenses, net (779) (661) (788) Net income $ 81,477 92,046 89,289 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, ($ in thousands) 2020 2019 2018 Operating Activities: Net income $ 81,477 92,046 89,289 Equity in undistributed earnings of subsidiaries (20,899) (65,555) (77,050) Decrease (increase) in other assets 5,806 (5,850) (13) (Decrease) increase in other liabilities (3) 64 146 Total – operating activities 66,381 20,705 12,372 Financing Activities: Payment of common stock cash dividends (20,936) (13,662) (11,281) Repurchases of common stock (31,868) (10,000) — Proceeds from issuance of common stock — 129 324 Stock withheld for payment of taxes (307) (702) (406) Total - financing activities (53,111) (24,235) (11,363) Net increase (decrease) in cash 13,270 (3,530) 1,009 Cash, beginning of year 2,014 5,544 4,535 Cash, end of year $ 15,284 2,014 5,544 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: For Years Ended December 31, 2020 2019 2018 ($ in thousands except per Income Shares Per Share Income Shares Per Share Income Shares Per Share Basic EPS: Net income $ 81,477 $ 92,046 $ 89,289 Less: income allocated to participating securities $ (398) $ (450) $ — Basic EPS per common share $ 81,079 28,839,866 $ 2.81 $ 91,596 29,547,851 $ 3.10 $ 89,289 29,566,259 $ 3.02 Diluted EPS: Net income $ 81,477 28,839,866 $ 92,046 29,547,851 $ 89,289 29,566,259 Effect of Dilutive Securities — 141,701 — 172,648 — 141,172 Diluted EPS per common share $ 81,477 28,981,567 $ 2.81 $ 92,046 29,720,499 $ 3.10 $ 89,289 29,707,431 $ 3.01 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) for the Company are as follows: ($ in thousands) December 31, December 31, December 31, Unrealized gain (loss) on securities available for sale $ 20,448 9,743 (12,390) Deferred tax (liability) asset (4,699) (2,239) 2,896 Net unrealized gain (loss) on securities available for sale 15,749 7,504 (9,494) Postretirement plans asset (liability) (1,817) (3,092) (3,220) Deferred tax asset (liability) 418 711 753 Net postretirement plans asset (liability) (1,399) (2,381) (2,467) Total accumulated other comprehensive income (loss) $ 14,350 5,123 (11,961) The following table discloses the changes in accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019, and 2018 (all amounts are net of tax). ($ in thousands) Unrealized Gain Postretirement Plans Asset Total Beginning balance at January 1, 2018 $ (1,694) (2,452) (4,146) Other comprehensive income (loss) before reclassifications (7,800) (31) (7,831) Amounts reclassified from accumulated other comprehensive income — 16 16 Net current-period other comprehensive income (loss) (7,800) (15) (7,815) Ending balance at December 31, 2018 (9,494) (2,467) (11,961) Other comprehensive income (loss) before reclassifications 17,073 (528) 16,545 Amounts reclassified from accumulated other comprehensive income (75) 614 539 Net current-period other comprehensive income (loss) 16,998 86 17,084 Ending balance at Ending balance at December 31, 2019 7,504 (2,381) 5,123 Other comprehensive income (loss) before reclassifications 14,425 454 14,879 Amounts reclassified from accumulated other comprehensive income (6,180) 528 (5,652) Net current-period other comprehensive income (loss) 8,245 982 9,227 Ending balance at December 31, 2020 $ 15,749 (1,399) 14,350 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Noninterest Income | The following table presents the Company’s sources of noninterest income for years ended December 31, 2020, 2019, and 2018. Items outside the scope of ASC 606 are noted as such. For the Years Ended December 31, ($ in thousands) 2020 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 11,098 12,970 12,690 Other service charges, commissions, and fees: Interchange income 14,142 13,814 11,995 Other fees 5,955 5,667 4,493 Commissions from sales of insurance and financial products: Insurance income 5,353 5,289 6,038 Wealth management income 3,495 3,206 2,693 SBA consulting fees 8,644 3,872 4,675 Noninterest income (in-scope of Topic 606) 48,687 44,818 42,584 Noninterest income (out-of-scope of Topic 606) 32,659 14,711 16,358 Total noninterest income $ 81,346 59,529 58,942 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)reporting_unitloan | Jan. 01, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Deferral period for payment deferrals | 90 days | |||||
Remaining payment deferrals | $ 16,600 | |||||
PPP loans originations | $ 245,000 | |||||
PPP forgiveness payoffs | $ 4,000 | |||||
Number of PPP loans outstanding | loan | 2,676 | |||||
Amount of PPP loans outstanding | $ 241,000 | |||||
SBA loans held for sale | $ 6,077 | $ 0 | ||||
SBA loan, amortization period | 25 years | |||||
Other Investments | $ 7,800 | 8,000 | ||||
Number of reporting units | reporting_unit | 3 | |||||
Goodwill | $ 239,272 | 234,368 | ||||
Allowance for credit losses | $ 52,388 | $ 21,398 | $ 21,039 | $ 23,298 | ||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Premises and equipment, useful life | 2 years | |||||
Identifiable intangible assets, useful life | 7 years | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Premises and equipment, useful life | 40 years | |||||
Identifiable intangible assets, useful life | 10 years | |||||
Forecast | Accounting Standards Update 2016-13 | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Allowance for credit losses | $ 12,000 | |||||
Forecast | Accounting Standards Update 2016-13 | Minimum | Unfunded Loan Commitment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Reserve | 6,000 | |||||
Forecast | Accounting Standards Update 2016-13 | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Allowance for credit losses | 14,000 | |||||
Forecast | Accounting Standards Update 2016-13 | Maximum | Unfunded Loan Commitment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Reserve | $ 7,000 | |||||
First Bank | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill | $ 227,600 | |||||
First Bank Insurance | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill | 7,400 | |||||
SBA | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Goodwill | $ 4,300 |
Acquisition (Details)
Acquisition (Details) - Magnolia Financial, Inc. $ in Millions | Sep. 01, 2020USD ($)shares |
Business Acquisition | |
Loans acquired | $ 14.6 |
Other assets acquired | 0.5 |
Liabilities assumed | 11.7 |
Total purchase price | 10 |
Payments for acquisition | $ 9.5 |
Number of shares issued | shares | 24,096 |
Value of shares issued | $ 0.5 |
Goodwill deductible for tax purposes | 4.9 |
Intangible assets deductible for tax purposes | $ 1.6 |
Intangible assets and goodwill, deductible for tax purposes, period | 15 years |
Securities - Summary of Book Va
Securities - Summary of Book Values and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities available for sale: | ||
Amortized Cost | $ 1,432,684 | $ 812,202 |
Fair Value | 1,453,132 | 821,945 |
Unrealized Gains | 22,963 | 10,505 |
Unrealized (Losses) | (2,515) | (762) |
Securities held to maturity: | ||
Amortized Cost | 167,551 | 67,932 |
Fair Value | 170,734 | 68,333 |
Unrealized Gains | 3,348 | 410 |
Unrealized (Losses) | (165) | (9) |
Government-sponsored enterprise securities | ||
Securities available for sale: | ||
Amortized Cost | 70,016 | 20,000 |
Fair Value | 70,206 | 20,009 |
Unrealized Gains | 371 | 17 |
Unrealized (Losses) | (181) | (8) |
Mortgage-backed securities | ||
Securities available for sale: | ||
Amortized Cost | 1,318,998 | 758,491 |
Fair Value | 1,337,706 | 767,285 |
Unrealized Gains | 20,832 | 9,463 |
Unrealized (Losses) | (2,124) | (669) |
Securities held to maturity: | ||
Amortized Cost | 29,959 | 41,423 |
Fair Value | 30,900 | 41,542 |
Unrealized Gains | 941 | 125 |
Unrealized (Losses) | 0 | (6) |
Corporate bonds | ||
Securities available for sale: | ||
Amortized Cost | 43,670 | 33,711 |
Fair Value | 45,220 | 34,651 |
Unrealized Gains | 1,760 | 1,025 |
Unrealized (Losses) | (210) | (85) |
State and local governments | ||
Securities held to maturity: | ||
Amortized Cost | 137,592 | 26,509 |
Fair Value | 139,834 | 26,791 |
Unrealized Gains | 2,407 | 285 |
Unrealized (Losses) | $ (165) | $ (3) |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)security$ / sharesshares | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Private mortgage-backed security fair value | $ 1,000,000 | $ 1,100,000 | |
Other than temporary impairment losses | $ 0 | $ 0 | |
Number of securities in an unrealized loss position | security | 69 | 54 | |
Investment securities, pledged as collateral for public deposits | $ 630,303,000 | $ 260,826,000 | |
Proceeds from sales of securities available for sale | 219,697,000 | 39,797,000 | $ 0 |
Gains (losses) sales of securities available for sale | 8,024,000 | 97,000 | $ 0 |
FHLB stock and FRB stock, cost | 23,526,000 | 33,380,000 | |
FHLB, cost | 5,855,000 | 15,789,000 | |
FRB stock | $ 17,671,000 | $ 17,591,000 | |
Visa, Inc | Common Class B | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Stock owned (in shares) | shares | 12,356 | ||
Carrying value of shares | $ 0 | ||
Visa, Inc | Common Class A | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Conversion price (in dollars per share) | $ / shares | $ 1.62 | ||
Conversion of stock (in shares) | shares | 20,051 |
Securities - Schedule of Inform
Securities - Schedule of Information Regarding Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value, AFS and HTM | $ 555,070 | $ 82,266 |
Unrealized Losses, AFS and HTM | 2,348 | 301 |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value, AFS and HTM | 7,003 | 52,700 |
Unrealized Losses, AFS and HTM | 332 | 470 |
Total | ||
Fair Value, AFS and HTM | 562,073 | 134,966 |
Unrealized Losses, AFS and HTM | 2,680 | 771 |
Government-sponsored enterprise securities | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value, AFS | 29,812 | 4,992 |
Unrealized Losses, AFS | 181 | 8 |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value, AFS | 0 | 0 |
Unrealized Losses, AFS | 0 | 0 |
Total | ||
Fair Value, AFS | 29,812 | 4,992 |
Unrealized Losses, AFS | 181 | 8 |
Mortgage-backed securities | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value, AFS and HTM | 497,992 | 77,274 |
Unrealized Losses, AFS and HTM | 1,957 | 293 |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value, AFS and HTM | 6,168 | 50,851 |
Unrealized Losses, AFS and HTM | 167 | 382 |
Total | ||
Fair Value, AFS and HTM | 504,160 | 128,125 |
Unrealized Losses, AFS and HTM | 2,124 | 675 |
Corporate bonds | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value, AFS | 3,956 | 0 |
Unrealized Losses, AFS | 45 | 0 |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value, AFS | 835 | 915 |
Unrealized Losses, AFS | 165 | 85 |
Total | ||
Fair Value, AFS | 4,791 | 915 |
Unrealized Losses, AFS | 210 | 85 |
State and local governments | ||
Securities in an Unrealized Loss Position for Less than 12 Months | ||
Fair Value, HTM | 23,310 | 0 |
Unrealized Losses, HTM | 165 | 0 |
Securities in an Unrealized Loss Position for More than 12 Months | ||
Fair Value, HTM | 0 | 934 |
Unrealized Losses, HTM | 0 | 3 |
Total | ||
Fair Value, HTM | 23,310 | 934 |
Unrealized Losses, HTM | $ 165 | $ 3 |
Securities - Schedule of Book V
Securities - Schedule of Book Values and Fair Values of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 0 | |
Due after one year but within five years | 28,670 | |
Due after five years but within ten years | 74,016 | |
Due after ten years | 11,000 | |
Mortgage-backed securities | 1,318,998 | |
Amortized Cost | 1,432,684 | $ 812,202 |
Securities available for sale: | ||
Due within one year | 0 | |
Due after one year but within five years | 30,265 | |
Due after five years but within ten years | 74,400 | |
Due after ten years | 10,761 | |
Mortgage-backed securities | 1,337,706 | |
Total securities | 1,453,132 | 821,945 |
Amortized Cost | ||
Due within one year | 2,087 | |
Due after one year but within five years | 2,915 | |
Due after five years but within ten years | 3,418 | |
Due after ten years | 129,172 | |
Mortgage-backed securities | 29,959 | |
Amortized Cost | 167,551 | 67,932 |
Fair Value | ||
Due within one year | 2,101 | |
Due after one year but within five years | 3,008 | |
Due after five years but within ten years | 3,536 | |
Due after ten years | 131,189 | |
Mortgage-backed securities | 30,900 | |
Total securities | $ 170,734 | $ 68,333 |
Loans and Asset Quality Infor_3
Loans and Asset Quality Information - Summary of Major Categories of Total Loans Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 4,735,013 | $ 4,451,525 | $ 4,247,765 |
Unamortized net deferred loan costs | (3,698) | 1,941 | 1,299 |
Total loans | $ 4,731,315 | $ 4,453,466 | 4,249,064 |
Percentage | 100.00% | 100.00% | |
SBA Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 169,662 | $ 165,182 | |
SBA Loans, Guaranteed Portion | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 33,959 | 54,400 | |
SBA Loans, Unguaranteed Portion | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 135,703 | 110,782 | |
SBA Loans, Sold Portion | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 395,398 | 316,730 | |
Commercial, financial, and agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 782,549 | $ 504,271 | 457,037 |
Percentage | 17.00% | 11.00% | |
Real estate, commercial | Real estate – construction, land development & other land loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 570,672 | $ 530,866 | 518,976 |
Percentage | 12.00% | 12.00% | |
Real estate, commercial | Real estate – mortgage – commercial and other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 2,049,203 | $ 1,917,280 | 1,787,022 |
Percentage | 43.00% | 43.00% | |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 972,378 | $ 1,105,014 | 1,054,176 |
Percentage | 21.00% | 25.00% | |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 306,256 | $ 337,922 | 359,162 |
Percentage | 6.00% | 8.00% | |
Installment loans to individuals | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 53,955 | $ 56,172 | $ 71,392 |
Percentage | 1.00% | 1.00% |
Loans and Asset Quality Infor_4
Loans and Asset Quality Information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
PPP loans | $ 240,500 | ||
Loans pledged as collateral | 4,000,000 | $ 4,000,000 | |
Payments that exceeded carrying amount of PCI loans | 500 | 406 | $ 772 |
Loan discount accretion income | 397 | 348 | 493 |
Additional loan interest income | 89 | 58 | 279 |
Recovery | 14 | ||
Interest income on restructured loans | $ 1,100 | 1,300 | 1,500 |
Deferral period for payment deferrals | 90 days | ||
Number of loans with payment deferrals | loan | 38 | ||
Remaining payment deferrals | $ 16,600 | ||
SBA Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Remaining unaccreted discount | 7,300 | 7,100 | |
Purchased Non-Impaired Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Remaining unaccreted discount | 7,900 | 11,100 | $ 15,000 |
SBA PPP loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unamortized net deferred loan fees | 6,000 | ||
Credit Card Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 33,200 | 30,900 | |
Real estate – mortgage – residential (1-4 family) first mortgages | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Presold mortgages in process of settlement | 1,900 | 600 | |
Officers And Directors | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Due from related parties | 3,600 | $ 5,300 | |
Loans and advances during the period | 2,200 | ||
Repayments received from related parties | $ 3,900 |
Loans and Asset Quality Infor_5
Loans and Asset Quality Information - Changes in Recorded Investment and Accretable Yield of PCI Loans (Details) - Purchased Credit Impaired Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PCI Loans | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 12,664 | $ 17,393 | $ 23,165 |
Accretion | (4,087) | (4,863) | (5,799) |
Change due to loan charge-offs | (13) | (11) | (4) |
Transfers to foreclosed real estate | 0 | 0 | (10) |
Other, net | 27 | 145 | 41 |
Balance at end of period | 8,591 | 12,664 | 17,393 |
PCI Loans, Accretable Discount | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | 4,149 | 4,750 | 4,688 |
Accretion | (1,119) | (1,486) | (2,050) |
Reclassification from (to) nonaccretable difference | 413 | 617 | 849 |
Other, net | (545) | 268 | 1,263 |
Balance at end of period | $ 2,898 | $ 4,149 | $ 4,750 |
Loans and Asset Quality Infor_6
Loans and Asset Quality Information - Summary of Nonperforming Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2017 | Mar. 03, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Nonaccrual loans | $ 35,076 | $ 24,866 | |||
Total loans | 4,735,013 | 4,451,525 | $ 4,247,765 | ||
Foreclosed properties | 2,424 | 3,873 | |||
Purchased credit impaired loans not included above | 8,591 | 12,664 | |||
Nonperforming assets | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Nonaccrual loans | 35,076 | 24,866 | |||
TDRs- accruing | 9,497 | 9,053 | |||
Accruing loans 90 days past due | 0 | 0 | |||
Total loans | 44,573 | 33,919 | |||
Foreclosed properties | 2,424 | 3,873 | |||
Total nonperforming assets | 46,997 | 37,792 | |||
Carolina Bank | Purchased Impaired Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Recorded loans with a fair value | $ 19,300 | ||||
Asheville Savings Bank | Purchased Impaired Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Recorded loans with a fair value | $ 9,900 | ||||
Carolina Bank and Asheville Savings Bank | Accruing 90 Days or More Past Due | Purchased Impaired Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Recorded loans with a fair value | $ 700 | $ 800 |
Loans and Asset Quality Infor_7
Loans and Asset Quality Information - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | $ 35,076 | $ 24,866 |
Commercial, financial, and agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | 9,681 | 5,518 |
Real estate, commercial | Real estate – construction, land development & other land loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | 643 | 1,067 |
Real estate, commercial | Real estate – mortgage – commercial and other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | 17,191 | 8,820 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | 6,048 | 7,552 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | 1,333 | 1,797 |
Installment loans to individuals | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual loans | $ 180 | $ 112 |
Loans and Asset Quality Infor_8
Loans and Asset Quality Information - Schedule of Analysis of Payment Status of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | $ 35,076 | $ 24,866 | |
Accruing Current | 4,677,629 | 4,402,978 | |
Loans | 4,735,013 | 4,451,525 | $ 4,247,765 |
Unamortized net deferred loan costs | (3,698) | 1,941 | 1,299 |
Total loans | 4,731,315 | 4,453,466 | 4,249,064 |
Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 16,318 | 17,236 | |
Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 5,271 | 5,683 | |
Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 719 | 762 | |
PCI Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 0 | 0 | |
Accruing Current | 7,432 | 11,646 | |
Loans | 8,591 | 12,664 | |
PCI Loans | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 328 | 218 | |
PCI Loans | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 112 | 38 | |
PCI Loans | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 719 | 762 | |
Commercial, financial, and agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 9,681 | 5,518 | |
Accruing Current | 770,166 | 497,788 | |
Loans | 782,549 | 504,271 | 457,037 |
Commercial, financial, and agricultural | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 1,464 | 752 | |
Commercial, financial, and agricultural | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 1,101 | 0 | |
Commercial, financial, and agricultural | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Real estate, commercial | Real estate – mortgage – commercial and other | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 17,191 | 8,820 | |
Accruing Current | 2,022,422 | 1,897,573 | |
Loans | 2,049,203 | 1,917,280 | 1,787,022 |
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 2,540 | 4,257 | |
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 3,111 | 0 | |
Real estate, commercial | Real estate – mortgage – commercial and other | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Real estate, commercial | Real estate – construction, land development & other land loans | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 643 | 1,067 | |
Accruing Current | 569,307 | 529,444 | |
Loans | 570,672 | 530,866 | 518,976 |
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 572 | 37 | |
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 152 | |
Real estate, commercial | Real estate – construction, land development & other land loans | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 1,333 | 1,797 | |
Accruing Current | 303,693 | 334,832 | |
Loans | 306,256 | 337,922 | 359,162 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 1,088 | 770 | |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 42 | 300 | |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 6,048 | 7,552 | |
Accruing Current | 951,088 | 1,076,205 | |
Loans | 972,378 | 1,105,014 | 1,054,176 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 10,146 | 10,858 | |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 869 | 5,056 | |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Installment loans to individuals | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual loans | 180 | 112 | |
Accruing Current | 53,521 | 55,490 | |
Loans | 53,955 | 56,172 | $ 71,392 |
Installment loans to individuals | Accruing 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 180 | 344 | |
Installment loans to individuals | Accruing 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 36 | 137 | |
Installment loans to individuals | Accruing 90 Days or More Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, past due | 0 | 0 | |
Loans, Excluding Purchased Credit Impaired Loans | Commercial, financial, and agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 782,412 | 504,058 | |
Loans, Excluding Purchased Credit Impaired Loans | Real estate, commercial | Real estate – mortgage – commercial and other | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 2,045,264 | 1,910,650 | |
Loans, Excluding Purchased Credit Impaired Loans | Real estate, commercial | Real estate – construction, land development & other land loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 570,522 | 530,700 | |
Loans, Excluding Purchased Credit Impaired Loans | Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 306,156 | 337,699 | |
Loans, Excluding Purchased Credit Impaired Loans | Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | 968,151 | 1,099,671 | |
Loans, Excluding Purchased Credit Impaired Loans | Installment loans to individuals | |||
Financing Receivable, Past Due [Line Items] | |||
Loans | $ 53,917 | $ 56,083 |
Loans and Asset Quality Infor_9
Loans and Asset Quality Information - Schedule of Activity in Allowance for Loan Losses for Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 21,398 | $ 21,039 | $ 23,298 |
Charge-offs | (8,502) | (6,303) | (6,971) |
Recoveries | 4,453 | 4,399 | 8,301 |
Provisions | 35,039 | 2,263 | (3,589) |
Ending balance | 52,388 | 21,398 | 21,039 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 6,551 | 3,574 | 2,269 |
Collectively evaluated for impairment | 45,699 | 17,641 | 18,642 |
Purchased credit impaired | 138 | 183 | 128 |
Loans receivable: | |||
Loans | 4,735,013 | 4,451,525 | 4,247,765 |
Unamortized net deferred loan costs | (3,698) | 1,941 | 1,299 |
Total loans | 4,731,315 | 4,453,466 | 4,249,064 |
Ending balances: Loans | |||
Individually evaluated for impairment | 36,281 | 25,202 | 24,253 |
Collectively evaluated for impairment | 4,690,141 | 4,413,659 | 4,206,119 |
Purchased credit impaired | 8,591 | 12,664 | 17,393 |
Commercial, financial, and agricultural | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,553 | 2,889 | 3,111 |
Charge-offs | (5,608) | (2,473) | (2,128) |
Recoveries | 745 | 980 | 1,195 |
Provisions | 11,626 | 3,157 | 711 |
Ending balance | 11,316 | 4,553 | 2,889 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 3,546 | 1,791 | 226 |
Collectively evaluated for impairment | 7,742 | 2,720 | 2,661 |
Purchased credit impaired | 28 | 42 | 2 |
Loans receivable: | |||
Loans | 782,549 | 504,271 | 457,037 |
Ending balances: Loans | |||
Individually evaluated for impairment | 7,700 | 4,957 | 696 |
Collectively evaluated for impairment | 774,712 | 499,101 | 456,111 |
Purchased credit impaired | 137 | 213 | 230 |
Installment loans to individuals | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 972 | 952 | 950 |
Charge-offs | (873) | (757) | (781) |
Recoveries | 294 | 235 | 309 |
Provisions | 1,085 | 542 | 474 |
Ending balance | 1,478 | 972 | 952 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,475 | 961 | 941 |
Purchased credit impaired | 3 | 11 | 11 |
Loans receivable: | |||
Loans | 53,955 | 56,172 | 71,392 |
Ending balances: Loans | |||
Individually evaluated for impairment | 4 | 0 | 0 |
Collectively evaluated for impairment | 53,913 | 56,083 | 71,140 |
Purchased credit impaired | 38 | 89 | 252 |
Unallocated | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | 110 | 1,972 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provisions | 213 | (110) | (1,862) |
Ending balance | 213 | 0 | 110 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 213 | 0 | 110 |
Purchased credit impaired | 0 | 0 | 0 |
Loans receivable: | |||
Loans | 0 | 0 | 0 |
Ending balances: Loans | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 | 0 |
Purchased credit impaired | 0 | 0 | 0 |
Real estate – construction, land development & other land loans | Real estate, commercial | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,976 | 2,243 | 2,816 |
Charge-offs | (51) | (553) | (158) |
Recoveries | 1,552 | 1,275 | 4,097 |
Provisions | 1,878 | (989) | (4,512) |
Ending balance | 5,355 | 1,976 | 2,243 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 30 | 50 | 134 |
Collectively evaluated for impairment | 5,325 | 1,926 | 2,109 |
Purchased credit impaired | 0 | 0 | 0 |
Loans receivable: | |||
Loans | 570,672 | 530,866 | 518,976 |
Ending balances: Loans | |||
Individually evaluated for impairment | 677 | 796 | 1,345 |
Collectively evaluated for impairment | 569,845 | 529,904 | 517,453 |
Purchased credit impaired | 150 | 166 | 178 |
Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,832 | 5,197 | 6,147 |
Charge-offs | (478) | (657) | (1,734) |
Recoveries | 754 | 705 | 833 |
Provisions | 3,940 | (1,413) | (49) |
Ending balance | 8,048 | 3,832 | 5,197 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 800 | 750 | 955 |
Collectively evaluated for impairment | 7,141 | 2,976 | 4,143 |
Purchased credit impaired | 107 | 106 | 99 |
Loans receivable: | |||
Loans | 972,378 | 1,105,014 | 1,054,176 |
Ending balances: Loans | |||
Individually evaluated for impairment | 9,303 | 9,546 | 12,391 |
Collectively evaluated for impairment | 958,848 | 1,090,125 | 1,035,532 |
Purchased credit impaired | 4,227 | 5,343 | 6,253 |
Real estate – mortgage – home equity loans / lines of credit | Real estate, mortgage | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,127 | 1,665 | 1,827 |
Charge-offs | (524) | (307) | (711) |
Recoveries | 487 | 629 | 364 |
Provisions | 1,285 | (860) | 185 |
Ending balance | 2,375 | 1,127 | 1,665 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | 48 |
Collectively evaluated for impairment | 2,375 | 1,127 | 1,608 |
Purchased credit impaired | 0 | 0 | 9 |
Loans receivable: | |||
Loans | 306,256 | 337,922 | 359,162 |
Ending balances: Loans | |||
Individually evaluated for impairment | 15 | 333 | 296 |
Collectively evaluated for impairment | 306,141 | 337,366 | 358,522 |
Purchased credit impaired | 100 | 223 | 344 |
Real estate – mortgage – commercial and other | Real estate, commercial | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 8,938 | 7,983 | 6,475 |
Charge-offs | (968) | (1,556) | (1,459) |
Recoveries | 621 | 575 | 1,503 |
Provisions | 15,012 | 1,936 | 1,464 |
Ending balance | 23,603 | 8,938 | 7,983 |
Ending balances: Allowance for loan losses | |||
Individually evaluated for impairment | 2,175 | 983 | 906 |
Collectively evaluated for impairment | 21,428 | 7,931 | 7,070 |
Purchased credit impaired | 0 | 24 | 7 |
Loans receivable: | |||
Loans | 2,049,203 | 1,917,280 | 1,787,022 |
Ending balances: Loans | |||
Individually evaluated for impairment | 18,582 | 9,570 | 9,525 |
Collectively evaluated for impairment | 2,026,682 | 1,901,080 | 1,767,361 |
Purchased credit impaired | $ 3,939 | $ 6,630 | $ 10,136 |
Loans and Asset Quality Info_10
Loans and Asset Quality Information - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | $ 20,139 | $ 7,513 | $ 8,918 |
Impaired loans with no related allowance - Unpaid Principal Balance | 22,613 | 8,506 | 10,329 |
Impaired loans with no related allowance - Average Recorded Investment | 14,796 | 8,242 | 11,888 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 16,142 | 17,689 | 15,335 |
Impaired loans with allowance - Unpaid Principal Balance | 17,442 | 18,953 | 15,484 |
Impaired loans with related allowance - Related Allowance | 6,551 | 3,574 | 2,269 |
Impaired loans with related allowance - Average Recorded Investment | 16,634 | 13,664 | 15,867 |
Commercial, financial, and agricultural | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 3,688 | 16 | 310 |
Impaired loans with no related allowance - Unpaid Principal Balance | 4,325 | 19 | 310 |
Impaired loans with no related allowance - Average Recorded Investment | 750 | 74 | 957 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 4,012 | 4,941 | 386 |
Impaired loans with allowance - Unpaid Principal Balance | 4,398 | 4,995 | 387 |
Impaired loans with related allowance - Related Allowance | 3,546 | 1,791 | 226 |
Impaired loans with related allowance - Average Recorded Investment | 5,139 | 1,681 | 422 |
Real estate, commercial | Real estate – construction, land development & other land loans | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 554 | 221 | 485 |
Impaired loans with no related allowance - Unpaid Principal Balance | 694 | 263 | 803 |
Impaired loans with no related allowance - Average Recorded Investment | 308 | 366 | 2,366 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 123 | 575 | 860 |
Impaired loans with allowance - Unpaid Principal Balance | 131 | 575 | 864 |
Impaired loans with related allowance - Related Allowance | 30 | 50 | 134 |
Impaired loans with related allowance - Average Recorded Investment | 502 | 586 | 385 |
Real estate, commercial | Real estate – mortgage – commercial and other | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 11,763 | 2,643 | 3,475 |
Impaired loans with no related allowance - Unpaid Principal Balance | 13,107 | 3,328 | 4,237 |
Impaired loans with no related allowance - Average Recorded Investment | 9,026 | 3,240 | 3,670 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 6,819 | 6,927 | 6,050 |
Impaired loans with allowance - Unpaid Principal Balance | 7,552 | 7,914 | 6,054 |
Impaired loans with related allowance - Related Allowance | 2,175 | 983 | 906 |
Impaired loans with related allowance - Average Recorded Investment | 5,786 | 5,136 | 5,911 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 4,115 | 4,300 | 4,626 |
Impaired loans with no related allowance - Unpaid Principal Balance | 4,456 | 4,539 | 4,948 |
Impaired loans with no related allowance - Average Recorded Investment | 4,447 | 4,415 | 4,804 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 5,188 | 5,246 | 7,765 |
Impaired loans with allowance - Unpaid Principal Balance | 5,361 | 5,469 | 7,904 |
Impaired loans with related allowance - Related Allowance | 800 | 750 | 955 |
Impaired loans with related allowance - Average Recorded Investment | 5,186 | 6,206 | 8,963 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 15 | 333 | 22 |
Impaired loans with no related allowance - Unpaid Principal Balance | 27 | 357 | 31 |
Impaired loans with no related allowance - Average Recorded Investment | 264 | 147 | 91 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 0 | 0 | 274 |
Impaired loans with allowance - Unpaid Principal Balance | 0 | 0 | 275 |
Impaired loans with related allowance - Related Allowance | 0 | 0 | 48 |
Impaired loans with related allowance - Average Recorded Investment | 21 | 55 | 184 |
Installment loans to individuals | |||
Loans with no related allowance recorded: | |||
Impaired loans with no related allowance - Recorded Investment | 4 | 0 | 0 |
Impaired loans with no related allowance - Unpaid Principal Balance | 4 | 0 | 0 |
Impaired loans with no related allowance - Average Recorded Investment | 1 | 0 | 0 |
Loans with an allowance recorded: | |||
Impaired loans with allowance - Recorded Investment | 0 | 0 | 0 |
Impaired loans with allowance - Unpaid Principal Balance | 0 | 0 | 0 |
Impaired loans with related allowance - Related Allowance | 0 | 0 | 0 |
Impaired loans with related allowance - Average Recorded Investment | $ 0 | $ 0 | $ 2 |
Loans and Asset Quality Info_11
Loans and Asset Quality Information - Schedule of Recorded Investment in Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | $ 4,735,013 | $ 4,451,525 | $ 4,247,765 |
Unamortized net deferred loan costs | (3,698) | 1,941 | 1,299 |
Total loans | 4,731,315 | 4,453,466 | 4,249,064 |
PCI Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 8,591 | 12,664 | |
Commercial, financial, and agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 782,549 | 504,271 | 457,037 |
Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 782,412 | 504,058 | |
Real estate, commercial | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 570,672 | 530,866 | 518,976 |
Real estate, commercial | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 2,049,203 | 1,917,280 | 1,787,022 |
Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 570,522 | 530,700 | |
Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 2,045,264 | 1,910,650 | |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 972,378 | 1,105,014 | 1,054,176 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 306,256 | 337,922 | 359,162 |
Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 968,151 | 1,099,671 | |
Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 306,156 | 337,699 | |
Installment loans to individuals | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 53,955 | 56,172 | $ 71,392 |
Installment loans to individuals | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 53,917 | 56,083 | |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 4,613,259 | 4,338,381 | |
Pass | PCI Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 6,901 | 8,098 | |
Pass | Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 762,091 | 486,081 | |
Pass | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 560,845 | 522,767 | |
Pass | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,988,684 | 1,873,594 | |
Pass | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 943,455 | 1,063,735 | |
Pass | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 297,795 | 328,903 | |
Pass | Installment loans to individuals | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 53,488 | 55,203 | |
Special Mention Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 61,260 | 50,321 | |
Special Mention Loans | PCI Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 85 | 2,590 | |
Special Mention Loans | Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 9,553 | 7,998 | |
Special Mention Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 7,877 | 4,075 | |
Special Mention Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 34,588 | 20,800 | |
Special Mention Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 7,609 | 13,187 | |
Special Mention Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,468 | 1,258 | |
Special Mention Loans | Installment loans to individuals | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 80 | 413 | |
Classified Accruing Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 25,418 | 37,957 | |
Classified Accruing Loans | PCI Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,605 | 1,976 | |
Classified Accruing Loans | Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,087 | 4,461 | |
Classified Accruing Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,157 | 2,791 | |
Classified Accruing Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 4,801 | 7,436 | |
Classified Accruing Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 11,039 | 15,197 | |
Classified Accruing Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 5,560 | 5,741 | |
Classified Accruing Loans | Installment loans to individuals | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 169 | 355 | |
Classified Nonaccrual Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 35,076 | 24,866 | |
Classified Nonaccrual Loans | PCI Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 0 | 0 | |
Classified Nonaccrual Loans | Commercial, financial, and agricultural | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 9,681 | 5,518 | |
Classified Nonaccrual Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – construction, land development & other land loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 643 | 1,067 | |
Classified Nonaccrual Loans | Real estate, commercial | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – commercial and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 17,191 | 8,820 | |
Classified Nonaccrual Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – residential (1-4 family) first mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 6,048 | 7,552 | |
Classified Nonaccrual Loans | Real estate, mortgage | Loans, Excluding Purchased Credit Impaired Loans | Real estate – mortgage – home equity loans / lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | 1,333 | 1,797 | |
Classified Nonaccrual Loans | Installment loans to individuals | Loans, Excluding Purchased Credit Impaired Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans | $ 180 | $ 112 |
Loans and Asset Quality Info_12
Loans and Asset Quality Information - Schedule of Information of Loans Modified in Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 12 | 6 | 6 |
Pre- Modification Restructured Balances | $ 6,338 | $ 1,056 | $ 655 |
Post- Modification Restructured Balances | $ 6,341 | $ 1,060 | $ 684 |
Commercial, financial, and agricultural | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2 | 2 | 0 |
Pre- Modification Restructured Balances | $ 143 | $ 395 | $ 0 |
Post- Modification Restructured Balances | $ 143 | $ 395 | $ 0 |
Commercial, financial, and agricultural | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Pre- Modification Restructured Balances | $ 72 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 72 | $ 0 | $ 0 |
Real estate, commercial | Real estate – construction, land development & other land loans | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Pre- Modification Restructured Balances | $ 67 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 67 | $ 0 | $ 0 |
Real estate, commercial | Real estate – construction, land development & other land loans | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 1 |
Pre- Modification Restructured Balances | $ 0 | $ 0 | $ 61 |
Post- Modification Restructured Balances | $ 0 | $ 0 | $ 61 |
Real estate, commercial | Real estate – mortgage – commercial and other | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 0 |
Pre- Modification Restructured Balances | $ 0 | $ 274 | $ 0 |
Post- Modification Restructured Balances | $ 0 | $ 274 | $ 0 |
Real estate, commercial | Real estate – mortgage – commercial and other | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 5 | 0 | 0 |
Pre- Modification Restructured Balances | $ 5,977 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 5,977 | $ 0 | $ 0 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2 | 3 | 2 |
Pre- Modification Restructured Balances | $ 75 | $ 387 | $ 254 |
Post- Modification Restructured Balances | $ 78 | $ 391 | $ 273 |
Real estate, mortgage | Real estate – mortgage – residential (1-4 family) first mortgages | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 3 |
Pre- Modification Restructured Balances | $ 0 | $ 0 | $ 340 |
Post- Modification Restructured Balances | $ 0 | $ 0 | $ 350 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Real estate, mortgage | Real estate – mortgage – home equity loans / lines of credit | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Installment loans to individuals | TDRs – Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Pre- Modification Restructured Balances | $ 4 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 4 | $ 0 | $ 0 |
Installment loans to individuals | TDRs – Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Post- Modification Restructured Balances | $ 0 | $ 0 | $ 0 |
Loans and Asset Quality Info_13
Loans and Asset Quality Information - Schedule of Accruing Restructured Loans Defaulted in Period (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 4 |
Recorded Investment | $ | $ 274 | $ 93 | $ 1,393 |
Real estate – mortgage – residential (1-4 family) first mortgages | Real estate, mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 93 | $ 60 |
Real estate – mortgage – commercial and other | Real estate, commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 3 |
Recorded Investment | $ | $ 274 | $ 0 | $ 1,333 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 174,967 | $ 167,207 |
Less accumulated depreciation and amortization | (54,465) | (52,348) |
Total premises and equipment | 120,502 | 114,859 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 38,584 | 38,164 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 103,232 | 93,738 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 30,097 | 33,110 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 3,054 | $ 2,195 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortizable intangible assets: | ||
Gross Carrying Amount | $ 47,432 | $ 43,532 |
Accumulated Amortization | 32,066 | 26,315 |
Unamortizable intangible assets: | ||
Goodwill | 239,272 | 234,368 |
Customer lists | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 7,613 | 6,013 |
Accumulated Amortization | 2,814 | 2,185 |
Core deposit intangibles | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 28,440 | 28,440 |
Accumulated Amortization | 23,832 | 20,610 |
SBA servicing asset | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 9,976 | 7,776 |
Accumulated Amortization | 4,188 | 2,393 |
Other | ||
Amortizable intangible assets: | ||
Gross Carrying Amount | 1,403 | 1,303 |
Accumulated Amortization | $ 1,232 | $ 1,127 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | Sep. 01, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Balance of servicing assets | $ 5,788,000 | $ 5,788,000 | ||||||
Servicing assets recorded | 2,200,000 | $ 2,304,000 | ||||||
Amortization of SBA servicing assets | 1,795,000 | 1,340,000 | $ 846,000 | |||||
SBA servicing asset | 395,400,000 | 395,400,000 | 316,700,000 | |||||
Intangibles amortization | 3,956,000 | 4,858,000 | 5,917,000 | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Magnolia Financial, Inc. | ||||||||
Business Acquisition | ||||||||
Goodwill deductible for tax purposes | $ 4,900,000 | |||||||
Intangible assets deductible for tax purposes | $ 1,600,000 | |||||||
Intangible assets and goodwill, deductible for tax purposes, period | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of the Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 3,272 |
2022 | 2,367 |
2023 | 1,386 |
2024 | 741 |
2025 | 562 |
Thereafter | 1,250 |
Total | $ 9,578 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current - Federal | $ 27,799 | $ 19,920 | $ 19,188 |
Current - State | 3,909 | 2,499 | 3,187 |
Deferred - Federal | (8,893) | 1,572 | 1,658 |
Deferred - State | (1,161) | 239 | 156 |
Income tax expense (benefit) | $ 21,654 | $ 24,230 | $ 24,189 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 12,031 | $ 4,916 |
Excess book over tax pension plan cost | 367 | 241 |
Deferred compensation | 257 | 293 |
Federal & state net operating loss and tax credit carryforwards | 282 | 376 |
Accruals, book versus tax | 3,232 | 2,833 |
Pension liability adjustments | 418 | 710 |
Foreclosed real estate | 123 | 87 |
Basis differences in assets acquired in FDIC transactions | 647 | 416 |
Equity compensation | 661 | 370 |
Partnership investments | 258 | 254 |
Leases | 120 | 0 |
SBA servicing asset | 358 | 400 |
All other | 3 | 3 |
Gross deferred tax assets | 18,757 | 10,899 |
Less: Valuation allowance | (14) | (40) |
Net deferred tax assets | 18,743 | 10,859 |
Deferred tax liabilities: | ||
Loan fees | (1,011) | (2,428) |
Depreciable basis of fixed assets | (4,809) | (4,995) |
Amortizable basis of intangible assets | (7,965) | (7,844) |
FHLB stock dividends | (236) | (472) |
Trust preferred securities | (473) | (548) |
Purchase accounting adjustments | 0 | (84) |
Unrealized gain on securities available for sale | (4,699) | (2,239) |
Gross deferred tax liabilities | (19,193) | (18,610) |
Net deferred tax liability - included in other liabilities | $ (450) | $ (7,751) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Deferred income tax - unrealized gains (losses) on available for sale securities | $ 2,460 | $ 5,135 |
Deferred income tax - pension adjustments | 292 | 42 |
Increase in deferred income tax expense | 10,054 | $ 1,811 |
State income tax rate effective (as a percent) | 2.50% | |
Pre-1988 tax bad debt reserve | $ 6,869 | $ 6,869 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at statutory rate | $ 21,657 | $ 24,418 | $ 23,830 |
Increase (decrease) in income taxes resulting from: | |||
Tax-exempt interest income | (1,050) | (1,186) | (1,117) |
Low income housing tax credits | (772) | (756) | (698) |
Bank-owned life insurance income | (532) | (538) | (532) |
Non-deductible interest expense | 23 | 43 | 27 |
State income taxes, net of federal benefit | 2,117 | 2,178 | 2,639 |
Change in valuation allowance | (20) | 4 | (8) |
Impact of tax reform | 0 | (73) | 0 |
Other, net | 231 | 140 | 48 |
Income tax expense (benefit) | $ 21,654 | $ 24,230 | $ 24,189 |
Time Deposits and Related Par_3
Time Deposits and Related Party Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Banking and Thrift [Abstract] | |
2021 | $ 681,719 |
2022 | 63,423 |
2023 | 21,070 |
2024 | 8,217 |
2025 | 15,829 |
Thereafter | 674 |
Total time deposits | $ 790,932 |
Time Deposits and Related Par_4
Time Deposits and Related Party Deposits - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift [Abstract] | ||
Deposits received from officers and directors | $ 4,400,000 | $ 1,300,000 |
Time deposits of $250,000 or more | 375,700,000 | 442,200,000 |
Deposit overdrafts | 500,000 | 700,000 |
FDIC insurance limit for insured deposits | 250,000 | |
Brokered deposits | $ 20,200,000 | $ 86,100,000 |
Borrowings and Borrowings Ava_3
Borrowings and Borrowings Availability - Schedule of Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 64,409 | $ 303,430 |
Weighted average interest rate | 2.22% | 2.68% |
Unamortized discount on acquired borrowings | $ (2,580) | $ (2,759) |
Total borrowings | 61,829 | 300,671 |
FHLB Term Note Due January 30, 2020 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 100,000 | |
Weighted average interest rate | 1.70% | |
FHLB Term Note Due January 31, 2020 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 68,000 | |
Weighted average interest rate | 1.70% | |
FHLB Term Note Due January 31, 2020 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 30,000 | |
Weighted average interest rate | 1.70% | |
FHLB Term Note Due May 29, 2020 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 40,000 | |
Weighted average interest rate | 1.62% | |
FHLB Principal Reducing Credit Due July 24, 2023 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 124 | $ 168 |
Weighted average interest rate | 1.00% | 1.00% |
FHLB Principal Reducing Credit Due December 22, 2023 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 991 | $ 1,029 |
Weighted average interest rate | 1.25% | 1.25% |
FHLB Principal Reducing Credit Due January 15, 2026 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 5,500 | $ 6,500 |
Weighted average interest rate | 1.98% | 1.98% |
FHLB Principal Reducing Credit Due June 26, 2028 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 235 | $ 245 |
Weighted average interest rate | 0.25% | 0.25% |
FHLB Principal Reducing Credit Due July 17, 2028 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 49 | $ 55 |
Weighted average interest rate | 0.00% | 0.00% |
FHLB Principal Reducing Credit Due August 18, 2028 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 174 | $ 181 |
Weighted average interest rate | 1.00% | 1.00% |
FHLB Principal Reducing Credit Due August 22, 2028 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 174 | $ 181 |
Weighted average interest rate | 1.00% | 1.00% |
FHLB Principal Reducing Credit Due December 20, 2028 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 355 | $ 367 |
Weighted average interest rate | 0.50% | 0.50% |
Trust Preferred Securities Due January 23, 2034 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 20,620 | $ 20,620 |
Weighted average interest rate | 2.91% | 4.61% |
Trust Preferred Securities Due January 23, 2034 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.70% | 2.70% |
Trust Preferred Securities Due June 15, 2036 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 25,774 | $ 25,774 |
Weighted average interest rate | 1.61% | 3.28% |
Trust Preferred Securities Due June 15, 2036 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.39% | 1.39% |
Trust Preferred Securities Due January 7, 2035 | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 10,310 | $ 10,310 |
Weighted average interest rate | 2.24% | 3.99% |
Trust Preferred Securities Due January 7, 2035 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | 2.00% |
Other Borrowing | ||
Debt Instrument [Line Items] | ||
Total borrowings, gross | $ 103 |
Borrowings and Borrowings Ava_4
Borrowings and Borrowings Availability - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 253,000,000 | |
Borrowings | $ 64,409,000 | 303,430,000 |
Trust Preferred Securities due January 2034 | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 20,600,000 | |
Trust Preferred Securities due January 2034 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.70% | |
First Bancorp Capital Trust III | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 10,300,000 | |
Trust Preferred Securities due June 2036 | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 25,800,000 | |
Trust Preferred Securities due June 2036 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.39% | |
Trust Preferred Securities due January 2035 | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 10,300,000 | |
Trust Preferred Securities due January 2035 | Three-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | |
FHLB Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, borrowing capacity | $ 1,020,000,000 | |
Line of credit, outstanding | 8,000,000 | 247,000,000 |
Federal Funds Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, borrowing capacity | 100,000,000 | |
Line of credit, outstanding | 0 | 0 |
FRB Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, outstanding | 0 | $ 0 |
Unused portion | $ 134,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)branch_office | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 21 years | ||
Weighted average discount rate | 3.27% | ||
Operating right-of-use lease assets | $ 17,514 | $ 19,669 | |
Lease liabilities | 17,868 | 19,855 | |
Total operating lease expense | $ 2,900 | ||
Total operating lease expense | $ 2,600 | $ 2,300 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Option extension period | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Option extension period | 10 years | ||
Land and Building | |||
Lessee, Lease, Description [Line Items] | |||
Number of branch locations | branch_office | 9 | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Number of branch locations | branch_office | 8 |
Leases - Schedule of Estimated
Leases - Schedule of Estimated Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 2,245 | |
2022 | 1,832 | |
2023 | 1,673 | |
2024 | 1,472 | |
2025 | 1,242 | |
Thereafter | 18,272 | |
Total undiscounted lease payments | 26,736 | |
Less effect of discounting | (8,868) | |
Present value of estimated lease payments (lease liability) | $ 17,868 | $ 19,855 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 02, 2018 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)calendar_year | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer matching contribution percentage | 6.00% | |||||
Amortization of unrecognized net actuarial loss | $ (686) | $ (814) | $ (21) | |||
401(k) Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Deferral rate | 5.00% | |||||
Percent of annual salary employees may contribute | 15.00% | |||||
Percent matched by company up to 6 percent of employee salary | 100.00% | |||||
Matching contributions | $ 4,300 | 4,200 | 3,600 | |||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of Final Average Annual Compensation (five highest consecutive calendar year's earnings out of the last ten years of employment) | 0.75% | |||||
Number of highest consecutive calendar years of earnings | calendar_year | 5 | |||||
Percentage of Final Average Annual Compensation in excess of average social security wage base | 0.65% | |||||
Years of service used for Final Average Annual Compensation in excess of average social security wage base calculation | 35 years | |||||
Vesting period | 5 years | |||||
Accumulated benefit obligation | $ 44,750 | 41,592 | 36,354 | |||
Amortization of unrecognized net actuarial loss | $ (843) | (977) | ||||
SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of highest consecutive calendar years of earnings | calendar_year | 5 | |||||
Accumulated benefit obligation | $ 5,982 | 5,638 | $ 5,794 | |||
Amortization of unrecognized net actuarial loss | $ 157 | $ 163 | ||||
Lifetime monthly pension benefits, percent | 3.00% | |||||
Maximum percent of final average compensation | 60.00% | |||||
Percent of participant's primary social security benefit | 50.00% | |||||
Forecast | Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amortization of unrecognized net actuarial loss | $ 590 | |||||
Forecast | SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amortization of unrecognized net actuarial loss | $ 15 | |||||
Maximum | Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Years of service used for Final Average Annual Compensation calculation | 40 years | |||||
Maximum | SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Maximum years of service | 20 years |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Reconciliation of Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation | |||
Service cost | $ 0 | $ 0 | $ 0 |
Change in plan assets | |||
Plan assets at beginning of year | 43,824 | ||
Plan assets at end of year | 48,167 | 43,824 | |
Pension Plan | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 41,592 | 36,354 | 38,150 |
Service cost | 0 | 0 | 0 |
Interest cost | 1,223 | 1,482 | 1,312 |
Actuarial loss (gain) | 3,788 | 5,492 | (1,160) |
Benefits paid | (1,853) | (1,736) | (1,948) |
Benefit obligation at end of year | 44,750 | 41,592 | 36,354 |
Change in plan assets | |||
Plan assets at beginning of year | 43,824 | 39,170 | 41,306 |
Actual return on plan assets | 6,196 | 6,390 | (188) |
Employer contributions | 0 | 0 | 0 |
Benefits paid | (1,853) | (1,736) | (1,948) |
Plan assets at end of year | 48,167 | 43,824 | 39,170 |
Funded status at end of year | 3,417 | 2,232 | 2,816 |
SERP | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 5,638 | 5,794 | 5,970 |
Service cost | 0 | 0 | 124 |
Interest cost | 158 | 219 | 200 |
Actuarial loss (gain) | 517 | 23 | (102) |
Benefits paid | (331) | (398) | |
Benefit obligation at end of year | 5,982 | 5,638 | 5,794 |
Change in plan assets | |||
Plan assets at beginning of year | 0 | 0 | |
Benefits paid | (331) | (398) | (398) |
Plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | $ (5,982) | $ (5,638) | $ (5,794) |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities | $ (5,982) | $ (5,638) |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 3,417 | $ 2,232 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net gain (loss) | $ (1,771) | $ (3,721) | |
Prior service cost | 0 | 0 | |
Amount recognized in AOCI before tax effect | (1,771) | (3,721) | |
Tax benefit (expense) | 407 | 855 | |
Net amount recognized as decrease to AOCI | (1,364) | (2,866) | $ (3,091) |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net gain (loss) | (46) | 629 | |
Prior service cost | 0 | 0 | |
Amount recognized in AOCI before tax effect | (46) | 629 | |
Tax benefit (expense) | 11 | (145) | |
Net amount recognized as decrease to AOCI | $ (35) | $ 484 | $ 624 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Reconciliation of Balances in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net gain (loss) arising during period | $ 589 | $ (686) | $ (41) |
Amortization of unrecognized actuarial gain (loss) | 686 | 814 | 21 |
Pension Plan | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of fiscal year | (2,866) | (3,091) | |
Net gain (loss) arising during period | 1,107 | (664) | |
Amortization of unrecognized actuarial gain (loss) | 843 | 977 | |
Tax (expense) benefit of changes during the year, net | (448) | (88) | |
Accumulated other comprehensive income (loss) at end of fiscal year | (1,364) | (2,866) | (3,091) |
SERP | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of fiscal year | 484 | 624 | |
Net gain (loss) arising during period | (517) | (22) | |
Prior service cost | 0 | 0 | |
Amortization of unrecognized actuarial gain (loss) | (157) | (163) | |
Amortization of prior service cost and transition obligation | 0 | 0 | |
Tax (expense) benefit of changes during the year, net | 155 | 45 | |
Accumulated other comprehensive income (loss) at end of fiscal year | $ (35) | $ 484 | $ 624 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Reconciliation of Prepaid Pension Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Prepaid Pension Cost [Roll Forward] | |||
Prepaid pension cost (liability) as of beginning of fiscal year | $ 5,954 | $ 6,851 | |
Net periodic pension cost for fiscal year | (766) | (897) | $ (231) |
Actual employer contributions | 0 | 0 | 0 |
Benefits paid | 1,853 | 1,736 | 1,948 |
Prepaid pension cost (liability) as of end of fiscal year | 5,188 | 5,954 | 6,851 |
SERP | |||
Prepaid Pension Cost [Roll Forward] | |||
Prepaid pension cost (liability) as of beginning of fiscal year | (6,266) | (6,608) | |
Net periodic pension cost for fiscal year | (1) | (56) | (311) |
Benefits paid | 331 | 398 | |
Prepaid pension cost (liability) as of end of fiscal year | $ (5,936) | $ (6,266) | $ (6,608) |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Net Pension Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost – benefits earned during the period | $ 0 | $ 0 | $ 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost – benefits earned during the period | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 1,223 | 1,482 | 1,312 |
Expected return on plan assets | (1,300) | (1,562) | (1,115) |
Net amortization and deferral | 843 | 977 | 34 |
Net periodic pension cost | 766 | 897 | 231 |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost – benefits earned during the period | 0 | 0 | 124 |
Interest cost on projected benefit obligation | 158 | 219 | 200 |
Net amortization and deferral | (157) | (163) | (13) |
Net periodic pension cost | $ 1 | $ 56 | $ 311 |
Employee Benefit Plans - Sche_7
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2020 | $ 1,843 |
Year ending December 31, 2021 | 1,918 |
Year ending December 31, 2022 | 1,977 |
Year ending December 31, 2023 | 2,021 |
Year ending December 31, 2024 | 2,085 |
Years ending December 31, 2026-2030 | 10,891 |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Year ending December 31, 2020 | 330 |
Year ending December 31, 2021 | 326 |
Year ending December 31, 2022 | 322 |
Year ending December 31, 2023 | 318 |
Year ending December 31, 2024 | 340 |
Years ending December 31, 2026-2030 | $ 1,719 |
Employee Benefit Plans - Sche_8
Employee Benefit Plans - Schedule of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 48,167 | $ 43,824 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 48,167 | 43,824 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 337 | 274 |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 337 | 274 |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47,830 | 43,550 |
Fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47,830 | 43,550 |
Fixed income funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Sche_9
Employee Benefit Plans - Schedule of Assumptions Used in Determining Actuarial Information (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net periodic pension cost | 3.03% | 4.08% | 3.46% |
Discount rate used to calculate end of year liability disclosures | 2.24% | 3.03% | 4.08% |
Expected long-term rate of return on assets | 3.03% | 4.08% | 2.75% |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine net periodic pension cost | 2.89% | 3.92% | 3.46% |
Discount rate used to calculate end of year liability disclosures | 2.04% | 2.89% | 3.92% |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Concentrations of Credit Risk - Schedule of Outstanding Loan Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Loan commitments | $ 332,963 | $ 386,944 |
Unused lines of credit | 1,088,060 | 935,728 |
Total | 1,421,023 | 1,322,672 |
Fixed Rate | ||
Loss Contingencies [Line Items] | ||
Loan commitments | 238,745 | 263,775 |
Unused lines of credit | 188,014 | 169,278 |
Total | 426,759 | 433,053 |
Variable Rate | ||
Loss Contingencies [Line Items] | ||
Loan commitments | 94,218 | 123,169 |
Unused lines of credit | 900,046 | 766,450 |
Total | $ 994,264 | $ 889,619 |
Commitments, Contingencies, a_4
Commitments, Contingencies, and Concentrations of Credit Risk - Narrative (Details) | Dec. 31, 2020USD ($)county | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | ||
Bank standby letters of credit | $ 14,100,000 | $ 12,000,000 |
Marketable securities to any one issuer or guarantor, threshold | 5,000,000 | |
Remaining funding commitments | 6,300,000 | |
FDIC-insured, amount | 250,000 | |
Federal Home Loan Bank of Atlanta | ||
Loss Contingencies [Line Items] | ||
Deposits | 42,600,000 | |
Federal Reserve Bank | ||
Loss Contingencies [Line Items] | ||
Deposits | 230,700,000 | |
PCBB | ||
Loss Contingencies [Line Items] | ||
Deposits | $ 2,800,000 | |
North Carolina | ||
Loss Contingencies [Line Items] | ||
Number of counties with branch locations | county | 36 | |
South Carolina | ||
Loss Contingencies [Line Items] | ||
Number of counties with branch locations | county | 3 |
Commitments, Contingencies, a_5
Commitments, Contingencies, and Concentrations of Credit Risk - Schedule of Maximum Credit Risk for Securities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Fannie Mae – mortgage-backed securities | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | $ 571,245 |
Fair value, Available for sale and held to maturity | 585,035 |
Freddie Mac – mortgage-backed securities | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 234,780 |
Fair value, Available for sale and held to maturity | 237,159 |
Ginnie Mae – mortgage-backed securities | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 549,811 |
Fair value, Available for sale and held to maturity | 552,830 |
Federal Farm Credit Bank – bonds | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 22,150 |
Fair value, Available for sale and held to maturity | 22,436 |
Small Business Administration securities | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 17,671 |
Fair value, Available for sale and held to maturity | 17,671 |
Federal Reserve Bank - common stock | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 5,855 |
Fair value, Available for sale and held to maturity | 5,855 |
First Citizens Bank – corporate bonds | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 11,000 |
Fair value, Available for sale and held to maturity | 10,999 |
Bank of America corporate bonds | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 7,000 |
Fair value, Available for sale and held to maturity | 7,409 |
Citigroup, Inc. corporate bonds | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 6,014 |
Fair value, Available for sale and held to maturity | 6,346 |
Federal Home Loan Bank of Atlanta - common stock | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 5,037 |
Fair value, Available for sale and held to maturity | 5,319 |
Loudoun County, Virginia - municipal bond | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 5,009 |
Fair value, Available for sale and held to maturity | 5,294 |
Goldman Sachs Group Inc. corporate bond | |
Loss Contingencies [Line Items] | |
Amortized cost, Available for sale and held to maturity | 40,015 |
Fair value, Available for sale and held to maturity | $ 40,356 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,453,132 | $ 821,945 |
Foreclosed properties | 2,424 | 3,873 |
Government-sponsored enterprise securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,206 | 20,009 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,337,706 | 767,285 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Government-sponsored enterprise securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Presold mortgages in process of settlement | 42,271 | 19,712 |
Impaired loans | 0 | 0 |
Foreclosed properties | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,453,132 | 821,945 |
Significant Other Observable Inputs (Level 2) | Recurring | Government-sponsored enterprise securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,206 | 20,009 |
Significant Other Observable Inputs (Level 2) | Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,337,706 | 767,285 |
Significant Other Observable Inputs (Level 2) | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 45,220 | 34,651 |
Significant Other Observable Inputs (Level 2) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Presold mortgages in process of settlement | 0 | 0 |
Impaired loans | 0 | 0 |
Foreclosed properties | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 16,000 | 10,718 |
Foreclosed properties | 1,484 | 1,830 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Government-sponsored enterprise securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Presold mortgages in process of settlement | 0 | 0 |
Impaired loans | 22,142 | 16,215 |
Foreclosed properties | 1,484 | 1,830 |
Estimated Fair Value | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,453,132 | 821,945 |
Estimated Fair Value | Recurring | Government-sponsored enterprise securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,206 | 20,009 |
Estimated Fair Value | Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,337,706 | 767,285 |
Estimated Fair Value | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 45,220 | 34,651 |
Estimated Fair Value | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Presold mortgages in process of settlement | 42,271 | 19,712 |
Impaired loans | 22,142 | 16,215 |
Foreclosed properties | $ 1,484 | $ 1,830 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed properties | $ 2,424 | $ 3,873 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans - valued at collateral value | 16,000 | 10,718 |
Impaired loans - valued at PV of expected cash flows | 6,142 | 5,497 |
Foreclosed properties | $ 1,484 | $ 1,830 |
Significant Unobservable Inputs (Level 3) | Appraised value; PV of expected cash flows | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans - valued at collateral value, measurement input | 0.10 | 0.10 |
Foreclosed real estate, measurement input | 10 | 10 |
Significant Unobservable Inputs (Level 3) | Minimum | Appraised value; PV of expected cash flows | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans - valued at PV, measurement input | 0.04 | 0.04 |
Significant Unobservable Inputs (Level 3) | Maximum | Appraised value; PV of expected cash flows | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans - valued at PV, measurement input | 0.11 | 0.11 |
Significant Unobservable Inputs (Level 3) | Weighted Average | Appraised value; PV of expected cash flows | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans - valued at PV, measurement input | 0.0621 | 0.0650 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and due from banks, noninterest-bearing | $ 93,724 | $ 64,519 |
Securities held to maturity | 167,551 | 67,932 |
Total loans, net of allowance | 4,678,927 | 4,432,068 |
Accrued interest receivable | 20,272 | 16,648 |
Bank-owned life insurance | 106,974 | 104,441 |
SBA servicing asset | 395,400 | 316,700 |
Accrued interest payable | 904 | 2,154 |
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and due from banks, noninterest-bearing | 93,724 | 64,519 |
Due from banks, interest-bearing | 273,566 | 166,783 |
Accrued interest receivable | 20,272 | 16,648 |
Bank-owned life insurance | 106,974 | 104,441 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity | 167,551 | 67,932 |
SBA loans held for sale | 6,077 | 0 |
Deposits | 6,273,596 | 4,931,355 |
Borrowings | 61,829 | 300,671 |
Accrued interest payable | 904 | 2,154 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of allowance | 4,678,927 | 4,432,068 |
SBA servicing asset | 5,788 | 5,383 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and due from banks, noninterest-bearing | 93,724 | 64,519 |
Due from banks, interest-bearing | 273,566 | 166,783 |
Accrued interest receivable | 20,272 | 16,648 |
Bank-owned life insurance | 106,974 | 104,441 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity | 170,734 | 68,333 |
SBA loans held for sale | 7,465 | 0 |
Deposits | 6,275,329 | 4,930,751 |
Borrowings | 53,321 | 295,399 |
Accrued interest payable | 904 | 2,154 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of allowance | 4,661,197 | 4,407,610 |
SBA servicing asset | $ 6,569 | $ 5,649 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 01, 2020USD ($)$ / sharesshares | Jun. 01, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)director$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2,540 | $ 2,270 | $ 1,569 | |||
Income tax benefits related to stock-based compensation expense | $ 584 | $ 522 | $ 367 | |||
Stock options outstanding (in shares) | shares | 0 | 0 | 9,000 | 38,689 | ||
Proceeds from stock options exercised | $ 0 | $ 129 | $ 324 | |||
Non-Employee Director Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 352 | $ 320 | ||||
Director equity grants granted, value | $ 32 | |||||
Number of directors | director | 11 | |||||
Granted during the period (in shares) | shares | 14,146 | 9,030 | ||||
Granted during the period, per director (in shares) | shares | 1,286 | 903 | ||||
Granted during the period (in dollars per share) | $ / shares | $ 24.87 | $ 35.41 | ||||
Long-Term Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted during the period (in shares) | shares | 68,704 | 82,826 | 66,060 | |||
Granted during the period (in dollars per share) | $ / shares | $ 26.96 | $ 36.36 | $ 40.04 | |||
Unrecognized compensation expense | $ 2,554 | |||||
Unrecognized compensation expense, period for recognition | 1 year 9 months 18 days | |||||
Long-Term Restricted Stock | Next Twelve Months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 1,577 | |||||
First Bancorp 2014 Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares remaining available for grant (in shares) | shares | 549,876 | |||||
First Bancorp Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options outstanding (in shares) | shares | 0 | 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Outstanding Restricted Stock (Details) - Long-Term Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Units | |||
Nonvested, beginning (in shares) | 159,366 | 129,251 | 103,063 |
Granted during the period (in shares) | 68,704 | 82,826 | 66,060 |
Vested during the period (in shares) | (55,965) | (51,757) | (35,703) |
Forfeited or expired during the period (in shares) | 0 | (954) | (4,169) |
Nonvested, ending (in shares) | 172,105 | 159,366 | 129,251 |
Weighted-Average Grant-Date Fair Value | |||
Nonvested, beginning (in dollars per share) | $ 36.79 | $ 32.39 | $ 24.08 |
Granted during the period (in dollars per share) | 26.96 | 36.36 | 40.04 |
Vested during the period (in dollars per share) | 33.91 | 25.02 | 22.82 |
Forfeited or expired during the period (in dollars per share) | 0 | 41.93 | 29.99 |
Nonvested, ending (in dollars per share) | $ 33.80 | $ 36.79 | $ 32.39 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Company's Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Balance options outstanding, beginning (in shares) | 0 | 9,000 | 38,689 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | (9,000) | (29,689) |
Forfeited (in shares) | 0 | 0 | 0 |
Expired (in shares) | 0 | 0 | 0 |
Balance options outstanding, end (in shares) | 0 | 0 | 9,000 |
Exercisable, end of period (in shares) | 0 | ||
Weighted- Average Exercise Price | |||
Balance, beginning (in dollars per share) | $ 0 | $ 14.35 | $ 16.09 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 0 | 14.35 | 16.61 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Expired (in dollars per share) | 0 | 0 | 0 |
Balance, ending (in dollars per share) | 0 | $ 0 | $ 14.35 |
Exercisable (in dollars per share) | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted- Average Contractual Term, outstanding | 0 years | ||
Weighted- Average Contractual Term, exercisable | 0 years | ||
Aggregate Intrinsic Value, Exercises in period | $ 0 | $ 203,963 | $ 659,743 |
Aggregate Intrinsic Value, outstanding | 0 | ||
Aggregate Intrinsic Value, exercisable | $ 0 |
Regulatory Restrictions - Narra
Regulatory Restrictions - Narrative (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Banking and Thrift [Abstract] | |
Restricted investment in bank | $ 590,672 |
Average reserve balance | $ 1,099 |
Regulatory Restrictions - Sched
Regulatory Restrictions - Schedule of Capital Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Company [Member] | ||
Amount | ||
Common equity Tier 1 capital ratio, actual | $ 639,369 | $ 610,642 |
Capital | 744,835 | 684,931 |
Tier One Risk Based Capital | 691,865 | 662,987 |
Tier One Leverage Capital | 691,865 | 662,987 |
Common equity Tier 1 capital ratio, fully phased-in regulatory guidelines minimum | 339,251 | 321,994 |
Capital Required for Capital Adequacy | 508,876 | 482,991 |
Tier One Risk Based Capital Required for Capital Adequacy | 411,947 | 390,993 |
Tier One Leverage Capital Required for Capital Adequacy | $ 280,039 | $ 236,904 |
Ratio | ||
Common equity Tier 1 capital ratio, actual | 13.19% | 13.28% |
Total capital ratio, actual | 15.37% | 14.89% |
Tier I capital ratio, actual | 14.28% | 14.41% |
Leverage ratio, actual | 9.88% | 11.19% |
Common equity Tier 1 capital ratio, fully phased-in regulatory guidelines minimum | 7.00% | 7.00% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 10.50% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 8.50% |
Leverage ratio, for capital adequacy purposes | 4.00% | 4.00% |
Bank [Member] | ||
Amount | ||
Common equity Tier 1 capital ratio, actual | $ 682,312 | $ 661,234 |
Capital | 735,282 | 683,178 |
Tier One Risk Based Capital | 682,312 | 661,234 |
Tier One Leverage Capital | 682,312 | 661,234 |
Common equity Tier 1 capital ratio, fully phased-in regulatory guidelines minimum | 339,125 | 321,866 |
Capital Required for Capital Adequacy | 508,688 | 482,799 |
Tier One Risk Based Capital Required for Capital Adequacy | 411,795 | 390,837 |
Tier One Leverage Capital Required for Capital Adequacy | 280,003 | 236,700 |
Common equity Tier 1 capital ratio, to be well capitalized under prompt corrective action provisions | 314,902 | 298,875 |
Capital Required to be Well Capitalized | 484,465 | 459,808 |
Tier One Risk Based Capital Required to be Well Capitalized | 387,572 | 367,846 |
Tier One Leverage Capital Required to be Well Capitalized | $ 350,004 | $ 295,875 |
Ratio | ||
Common equity Tier 1 capital ratio, actual | 14.08% | 14.38% |
Total capital ratio, actual | 15.18% | 14.86% |
Tier I capital ratio, actual | 14.08% | 14.38% |
Leverage ratio, actual | 9.75% | 11.17% |
Common equity Tier 1 capital ratio, fully phased-in regulatory guidelines minimum | 7.00% | 7.00% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 10.50% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 8.50% |
Leverage ratio, for capital adequacy purposes | 4.00% | 4.00% |
Common equity Tier 1 capital ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions | 6.50% | 6.50% |
Total capital ratio, to be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier I capital ratio, to be well capitalized under prompt corrective action provisions | 8.00% | 8.00% |
Leverage ratio, to be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Supplementary Income Statemen_3
Supplementary Income Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Other service charges, commissions, and fees - interchange fees, net | $ 14,142 | $ 13,814 | $ 11,995 |
Other operating expenses - dues and subscriptions (includes software subscriptions) | 4,764 | 4,250 | 3,431 |
Other operating expenses - data processing expense | 3,157 | 3,130 | 3,234 |
Other operating expenses - telephone and data line expense | 2,893 | 3,057 | 3,024 |
Other operating expenses - marketing | $ 1,960 | $ 2,727 | $ 3,065 |
Condensed Parent Company Info_3
Condensed Parent Company Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Premises and equipment | $ 120,502 | $ 114,859 | ||
Other assets | 52,179 | 59,605 | ||
Total assets | 7,289,751 | 6,143,639 | ||
Liabilities and shareholders' equity | ||||
Trust preferred securities | 61,829 | 300,671 | ||
Other liabilities | 42,133 | 37,203 | ||
Total liabilities | 6,396,330 | 5,291,238 | ||
Shareholders’ equity | 893,421 | 852,401 | $ 764,230 | $ 692,979 |
Total liabilities and shareholders’ equity | 7,289,751 | 6,143,639 | ||
Parent Company | ||||
Assets | ||||
Cash on deposit with bank subsidiary | 15,284 | 2,014 | ||
Investment in wholly-owned subsidiaries, at equity | 938,294 | 904,924 | ||
Premises and equipment | 7 | 7 | ||
Other assets | (164) | 5,642 | ||
Total assets | 953,421 | 912,587 | ||
Liabilities and shareholders' equity | ||||
Trust preferred securities | 54,200 | 54,049 | ||
Other liabilities | 5,800 | 6,137 | ||
Total liabilities | 60,000 | 60,186 | ||
Shareholders’ equity | 893,421 | 852,401 | ||
Total liabilities and shareholders’ equity | $ 953,421 | $ 912,587 |
Condensed Parent Company Info_4
Condensed Parent Company Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest expense | $ (19,562) | $ (33,903) | $ (23,777) |
Net income | 81,477 | 92,046 | 89,289 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from wholly-owned subsidiaries | 63,100 | 29,800 | 15,525 |
Earnings of wholly-owned subsidiaries, net of dividends | 20,899 | 65,555 | 77,050 |
Interest expense | (1,743) | (2,648) | (2,498) |
All other income and expenses, net | (779) | (661) | (788) |
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Condensed Parent Company Info_5
Condensed Parent Company Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Decrease (increase) in other assets | (991) | (3,171) | 6,059 |
Increase (decrease) in other liabilities | 9,805 | (391) | (8,230) |
Net cash provided by operating activities | 57,075 | 51,238 | 46,410 |
Cash Flows From Financing Activities | |||
Repurchases of common stock | (31,868) | (10,000) | 0 |
Stock withheld for payment of taxes | (307) | (702) | (406) |
Net cash provided by financing activities | 1,039,194 | 141,852 | 240,277 |
Increase (decrease) in Cash and Cash Equivalents | 135,988 | (231,596) | (26,592) |
Cash and Cash Equivalents, Beginning of Year | 231,302 | 462,898 | 489,490 |
Cash and Cash Equivalents, End of Year | 367,290 | 231,302 | 462,898 |
Parent Company | |||
Cash Flows From Operating Activities | |||
Net income | 81,477 | 92,046 | 89,289 |
Equity in undistributed earnings of subsidiaries | (20,899) | (65,555) | (77,050) |
Decrease (increase) in other assets | 5,806 | (5,850) | (13) |
Increase (decrease) in other liabilities | (3) | 64 | 146 |
Net cash provided by operating activities | 66,381 | 20,705 | 12,372 |
Cash Flows From Financing Activities | |||
Payment of common stock cash dividends | (20,936) | (13,662) | (11,281) |
Repurchases of common stock | (31,868) | (10,000) | 0 |
Proceeds from issuance of common stock | 0 | 129 | 324 |
Stock withheld for payment of taxes | (307) | (702) | (406) |
Net cash provided by financing activities | (53,111) | (24,235) | (11,363) |
Increase (decrease) in Cash and Cash Equivalents | 13,270 | (3,530) | 1,009 |
Cash and Cash Equivalents, Beginning of Year | 2,014 | 5,544 | 4,535 |
Cash and Cash Equivalents, End of Year | $ 15,284 | $ 2,014 | $ 5,544 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Sep. 01, 2020 | May 05, 2019 | May 06, 2016 | May 05, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Nov. 30, 2019 | Feb. 28, 2019 | Mar. 31, 2017 |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Deferred compensation paid to participants | $ 5,500,000 | |||||||||
Equity issued related to acquisition | $ 494,000 | $ 3,070,000 | ||||||||
Number of shares repurchased (in shares) | 1,117,208 | 282,000 | ||||||||
Average price (in dollars per share) | $ 28.53 | $ 35.51 | ||||||||
Value of repurchased shares | $ 31,900,000 | $ 10,000,000 | ||||||||
Authorized repurchase amount | 20,000,000 | 20,000,000 | $ 40,000,000 | $ 25,000,000 | ||||||
Carolina Bank | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Deferred compensation plan | $ 2,200,000 | $ 2,600,000 | $ 2,200,000 | $ 7,700,000 | ||||||
SBA Complete | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Earn-out period | 3 years | 3 years | ||||||||
Earn-out liability | $ 3,000,000 | |||||||||
Stock issued, shares | 78,353 | |||||||||
Equity issued related to acquisition | $ 3,100,000 | |||||||||
Magnolia Financial, Inc. | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Loans acquired | $ 14,600,000 | |||||||||
Other assets acquired | 500,000 | |||||||||
Liabilities assumed | 11,700,000 | |||||||||
Total purchase price | 10,000,000 | |||||||||
Payments for acquisition | $ 9,500,000 | |||||||||
Number of shares issued | 24,096 | |||||||||
Value of shares issued | $ 500,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation Of Numerators And Denominators (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic EPS: | |||
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Less: income allocated to participating securities | (398) | (450) | 0 |
Basic EPS per common share | $ 81,079 | $ 91,596 | $ 89,289 |
Basic (in shares) | 28,839,866 | 29,547,851 | 29,566,259 |
Basic (in dollars per share) | $ 2.81 | $ 3.10 | $ 3.02 |
Diluted EPS: | |||
Net income | $ 81,477 | $ 92,046 | $ 89,289 |
Effect of Dilutive Securities | 0 | 0 | 0 |
Diluted EPS per common share | $ 81,477 | $ 92,046 | $ 89,289 |
Basic (in shares) | 28,839,866 | 29,547,851 | 29,566,259 |
Effect of Dilutive Securities (in shares) | 141,701 | 172,648 | 141,172 |
Diluted (in shares) | 28,981,567 | 29,720,499 | 29,707,431 |
Diluted (in dollars per share) | $ 2.81 | $ 3.10 | $ 3.01 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Number of anti-dilutive securities (in shares) | 0 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) | $ 14,350 | $ 5,123 | |
Unrealized Gain (Loss) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) | 20,448 | 9,743 | $ (12,390) |
Deferred tax asset (liability) | (4,699) | (2,239) | 2,896 |
Total accumulated other comprehensive income (loss) | 15,749 | 7,504 | (9,494) |
Postretirement Plans Asset (Liability) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) | (1,817) | (3,092) | (3,220) |
Deferred tax asset (liability) | 418 | 711 | 753 |
Total accumulated other comprehensive income (loss) | (1,399) | (2,381) | (2,467) |
Total | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive income (loss) | $ 14,350 | $ 5,123 | $ (11,961) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 852,401 | $ 764,230 | $ 692,979 |
Other comprehensive income (loss) before reclassifications | 14,879 | 16,545 | (7,831) |
Amounts reclassified from accumulated other comprehensive income | (5,652) | 539 | 16 |
Net current-period other comprehensive income (loss) | 9,227 | 17,084 | (7,815) |
Ending balance | 893,421 | 852,401 | 764,230 |
Unrealized Gain (Loss) on Securities Available for Sale | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 7,504 | (9,494) | (1,694) |
Other comprehensive income (loss) before reclassifications | 14,425 | 17,073 | (7,800) |
Amounts reclassified from accumulated other comprehensive income | (6,180) | (75) | 0 |
Net current-period other comprehensive income (loss) | 8,245 | 16,998 | (7,800) |
Ending balance | 15,749 | 7,504 | (9,494) |
Postretirement Plans Asset (Liability) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,381) | (2,467) | (2,452) |
Other comprehensive income (loss) before reclassifications | 454 | (528) | (31) |
Amounts reclassified from accumulated other comprehensive income | 528 | 614 | 16 |
Net current-period other comprehensive income (loss) | 982 | 86 | (15) |
Ending balance | (1,399) | (2,381) | (2,467) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 5,123 | (11,961) | (4,146) |
Ending balance | $ 14,350 | $ 5,123 | $ (11,961) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Service charges on deposit accounts | $ 11,098 | $ 12,970 | $ 12,690 |
Other service charges, commissions, and fees: | |||
Interchange income | 14,142 | 13,814 | 11,995 |
Other fees | 5,955 | 5,667 | 4,493 |
Commissions from sales of insurance and financial products: | |||
Insurance income | 5,353 | 5,289 | 6,038 |
Wealth management income | 3,495 | 3,206 | 2,693 |
SBA consulting fees | 8,644 | 3,872 | 4,675 |
Noninterest income (in-scope of Topic 606) | 48,687 | 44,818 | 42,584 |
Noninterest income (out-of-scope of Topic 606) | 32,659 | 14,711 | 16,358 |
Total noninterest income | $ 81,346 | $ 59,529 | $ 58,942 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Interchange expense | $ 2.6 | ||
Deferred revenue | $ 1.4 | $ 1.6 | |
Revenue recognized from deferred revenue | $ 0.2 |