Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | FIRST BANCORP /NC/ | |
Entity Central Index Key | 811,589 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,643,990 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | |||
Cash and due from banks, noninterest-bearing | $ 82,758 | $ 71,645 | $ 64,145 |
Due from banks, interest-bearing | 326,089 | 234,348 | 217,188 |
Total cash and cash equivalents | 408,847 | 305,993 | 281,333 |
Securities available for sale | 198,924 | 199,329 | 199,156 |
Securities held to maturity (fair values of $124,878, $130,195, and $139,514) | 123,156 | 129,713 | 135,808 |
Presold mortgages in process of settlement | 17,426 | 2,116 | 4,094 |
Loans | 3,429,755 | 2,710,712 | 2,651,459 |
Allowance for loan losses | (24,593) | (23,781) | (24,575) |
Net loans | 3,405,162 | 2,686,931 | 2,626,884 |
Premises and equipment | 95,762 | 75,351 | 76,731 |
Accrued interest receivable | 11,445 | 9,286 | 8,785 |
Goodwill | 144,667 | 75,042 | 75,392 |
Other intangible assets | 15,634 | 4,433 | 4,603 |
Foreclosed real estate | 9,356 | 9,532 | 10,103 |
Bank-owned life insurance | 88,081 | 74,138 | 73,613 |
Other assets | 72,687 | 42,998 | 40,978 |
Total assets | 4,591,147 | 3,614,862 | 3,537,480 |
LIABILITIES | |||
Deposits: Noninterest bearing checking accounts | 1,016,947 | 756,003 | 749,256 |
Interest bearing checking accounts | 683,113 | 635,431 | 593,065 |
Money market accounts | 795,572 | 685,331 | 659,741 |
Savings accounts | 396,192 | 209,074 | 207,494 |
Time deposits of $100,000 or more | 517,770 | 422,687 | 451,622 |
Other time deposits | 241,647 | 238,827 | 249,662 |
Total deposits | 3,651,241 | 2,947,353 | 2,910,840 |
Borrowings | 397,525 | 271,394 | 236,394 |
Accrued interest payable | 1,143 | 539 | 523 |
Other liabilities | 28,737 | 27,475 | 24,775 |
Total liabilities | 4,078,646 | 3,246,761 | 3,172,532 |
Commitments and contingencies | |||
SHAREHOLDERS' EQUITY | |||
Common stock, no par value per share. Authorized: 40,000,000 shares Issued & outstanding: 24,723,929, 20,844,505, and 20,119,411 shares | 263,493 | 147,287 | 139,979 |
Retained earnings | 251,790 | 225,921 | 219,233 |
Stock in rabbi trust assumed in acquisition | (3,571) | ||
Rabbi trust obligation | 3,571 | ||
Accumulated other comprehensive income (loss) | (2,782) | (5,107) | (1,551) |
Total shareholders' equity | 512,501 | 368,101 | 364,948 |
Total liabilities and shareholders' equity | 4,591,147 | 3,614,862 | 3,537,480 |
Series C Preferred Stock [Member] | |||
SHAREHOLDERS' EQUITY | |||
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series C, convertible, issued & outstanding: none, none, and 728,706 shares | $ 7,287 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Securities held to maturity fair values | $ 124,878 | $ 130,195 | $ 139,514 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Common stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 |
Common stock, shares issued | 24,723,929 | 20,844,505 | 20,119,411 |
Common stock, shares outstanding | 24,723,929 | 20,844,505 | 20,119,411 |
Series C Preferred Stock [Member] | |||
Preferred stock, shares issued | 728,706 | ||
Preferred stock, shares outstanding | 728,706 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 41,549 | $ 29,919 | $ 114,908 | $ 90,301 |
Interest on investment securities: | ||||
Taxable interest income | 2,004 | 1,688 | 5,830 | 5,472 |
Tax-exempt interest income | 399 | 435 | 1,269 | 1,312 |
Other, principally overnight investments | 1,059 | 213 | 2,299 | 612 |
Total interest income | 45,011 | 32,255 | 124,306 | 97,697 |
INTEREST EXPENSE | ||||
Savings, checking and money market accounts | 685 | 401 | 1,892 | 1,204 |
Time deposits | 1,053 | 657 | 2,641 | 1,931 |
Other time deposits | 172 | 196 | 511 | 725 |
Borrowings | 1,462 | 647 | 3,411 | 1,750 |
Total interest expense | 3,372 | 1,901 | 8,455 | 5,610 |
Net interest income | 41,639 | 30,354 | 115,851 | 92,087 |
Provision (reversal) for loan losses | 723 | (23) | ||
Net interest income after provision (reversal) for loan losses | 41,639 | 30,354 | 115,128 | 92,110 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 2,945 | 2,710 | 8,525 | 7,960 |
Other service charges, commissions and fees | 3,468 | 2,996 | 10,195 | 8,869 |
Fees from presold mortgage loans | 1,842 | 710 | 4,121 | 1,491 |
Commissions from sales of insurance and financial products | 1,426 | 969 | 3,304 | 2,844 |
SBA consulting fees | 864 | 1,178 | 3,174 | 1,898 |
SBA loan sale gains | 1,692 | 694 | 3,241 | 694 |
Bank-owned life insurance income | 579 | 514 | 1,667 | 1,526 |
Foreclosed property gains (losses), net | (216) | (266) | (439) | (189) |
FDIC indemnification asset income (expense), net | (5,711) | (10,255) | ||
Securities gains (losses), net | (235) | 3 | ||
Other gains (losses), net | (238) | 1,363 | 493 | 1,237 |
Total noninterest income | 12,362 | 5,157 | 34,046 | 16,078 |
NONINTEREST EXPENSES | ||||
Salaries | 16,550 | 13,430 | 46,799 | 37,465 |
Employee benefits expense | 3,375 | 2,608 | 10,709 | 7,892 |
Total personnel expense | 19,925 | 16,038 | 57,508 | 45,357 |
Net occupancy expense | 2,439 | 2,005 | 6,981 | 5,791 |
Equipment related expenses | 1,070 | 904 | 3,277 | 2,693 |
Merger and acquisition expenses | 1,329 | 600 | 4,824 | 1,286 |
Intangibles amortization expense | 902 | 387 | 2,509 | 834 |
Other operating expenses | 8,719 | 7,784 | 26,441 | 22,677 |
Total noninterest expenses | 34,384 | 27,718 | 101,540 | 78,638 |
Income before income taxes | 19,617 | 7,793 | 47,634 | 29,550 |
Income tax expense | 6,531 | 3,115 | 15,839 | 10,396 |
Net income | 13,086 | 4,678 | 31,795 | 19,154 |
Preferred stock dividends | (58) | (175) | ||
Net income available to common shareholders | $ 13,086 | $ 4,620 | $ 31,795 | $ 18,979 |
Earnings per common share: Basic | $ 0.53 | $ 0.23 | $ 1.34 | $ 0.95 |
Earnings per common share: Diluted | 0.53 | 0.23 | 1.33 | 0.93 |
Dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Weighted average common shares outstanding: Basic | 24,607,516 | 20,007,518 | 23,728,262 | 19,904,226 |
Weighted average common shares outstanding: Diluted | 24,695,295 | 20,785,689 | 23,827,011 | 20,697,125 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 13,086 | $ 4,678 | $ 31,795 | $ 19,154 |
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period, pretax | 186 | 241 | 3,288 | 3,131 |
Tax (expense) benefit | (69) | (94) | (1,213) | (1,223) |
Reclassification to realized (gains) losses | 235 | (3) | ||
Tax expense (benefit) | (87) | 1 | ||
Postretirement Plans: | ||||
Amortization of unrecognized net actuarial (gain) loss | 53 | 50 | 158 | 152 |
Tax expense (benefit) | (20) | (20) | (56) | (59) |
Other comprehensive income (loss) | 150 | 177 | 2,325 | 1,999 |
Comprehensive income | $ 13,236 | $ 4,855 | $ 34,120 | $ 21,153 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Stock in Directors' Rabbi Trust [Member] | Directors' Deferred Fees Obligation [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2015 | $ 7,287 | $ 133,393 | $ 205,060 | $ (3,550) | $ 342,190 | ||
Beginning balance, shares at Dec. 31, 2015 | 19,748 | ||||||
Net income | 19,154 | 19,154 | |||||
Cash dividends declared ($0.24 per common share) | (4,806) | (4,806) | |||||
Preferred stock dividends | (175) | (175) | |||||
Equity issued pursuant to acquisitions | $ 5,509 | 5,509 | |||||
Equity issued pursuant to acquisitions, shares | 279 | ||||||
Stock option exercises | $ 375 | 375 | |||||
Stock option exercises, shares | 23 | ||||||
Stock-based compensation | $ 702 | 702 | |||||
Stock-based compensation, shares | 69 | ||||||
Other comprehensive income (loss) | 1,999 | 1,999 | |||||
Ending balance at Sep. 30, 2016 | 7,287 | $ 139,979 | 219,233 | (1,551) | $ 364,948 | ||
Ending balance, shares at Sep. 30, 2016 | 20,119 | 20,119,411 | |||||
Beginning balance at Dec. 31, 2016 | $ 147,287 | 225,921 | (5,107) | $ 368,101 | |||
Beginning balance, shares at Dec. 31, 2016 | 20,845 | 20,844,505 | |||||
Net income | 31,795 | $ 31,795 | |||||
Cash dividends declared ($0.24 per common share) | (5,926) | (5,926) | |||||
Equity issued pursuant to acquisitions | $ 114,893 | (7,688) | 7,688 | 114,893 | |||
Equity issued pursuant to acquisitions, shares | 3,813 | ||||||
Payment of deferred fees | 4,117 | (4,117) | |||||
Stock option exercises | $ 287 | 287 | |||||
Stock option exercises, shares | 16 | ||||||
Stock-based compensation | $ 1,026 | 1,026 | |||||
Stock-based compensation, shares | 50 | ||||||
Other comprehensive income (loss) | 2,325 | 2,325 | |||||
Ending balance at Sep. 30, 2017 | $ 263,493 | $ 251,790 | $ (3,571) | $ 3,571 | $ (2,782) | $ 512,501 | |
Ending balance, shares at Sep. 30, 2017 | 24,724 | 24,723,929 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Cash Flows From Operating Activities | |||||
Net income | $ 13,086 | $ 4,678 | $ 31,795 | $ 19,154 | |
Reconciliation of net income to net cash provided (used) by operating activities: | |||||
Provision (reversal) for loan losses | 723 | (23) | $ (23) | ||
Net security premium amortization | 2,165 | 2,418 | |||
Loan discount accretion | (5,073) | (3,553) | |||
Purchase accounting accretion and amortization, net | (142) | 9,993 | |||
Foreclosed property losses and write-downs (gains), net | 439 | 189 | |||
Loss (gain) on securities available for sale, net | 235 | (3) | |||
Other losses (gains), net | (493) | 126 | |||
Decrease (increase) in net deferred loan costs | 388 | 675 | |||
Depreciation of premises and equipment | 4,023 | 3,405 | |||
Stock-based compensation expense | 860 | 527 | |||
Amortization of intangible assets | 902 | 387 | 2,509 | 834 | |
Fees/gains from sale of presold mortgage and SBA loans | (7,362) | (2,185) | |||
Origination of presold mortgages in process of settlement | (169,021) | (56,260) | |||
Proceeds from sales of presold mortgages in process of settlement | 165,341 | 58,015 | |||
Origination of SBA loans | (54,714) | (8,471) | |||
Proceeds from sales of SBA loans | 44,259 | 9,165 | |||
Gain on sale of branches | (1,356) | ||||
Decrease (increase) in accrued interest receivable | (642) | 381 | |||
Increase in other assets | (13,112) | (1,530) | |||
Increase (decrease) in accrued interest payable | 340 | (20) | |||
Increase (decrease) in other liabilities | (12,377) | 185 | |||
Net cash provided (used) by operating activities | (9,859) | 31,666 | |||
Cash Flows From Investing Activities | |||||
Purchases of securities available for sale | (35,034) | (99,896) | |||
Purchases of securities held to maturity | (291) | ||||
Proceeds from maturities/issuer calls of securities available for sale | 29,156 | 68,206 | |||
Proceeds from maturities/issuer calls of securities held to maturity | 18,021 | 17,652 | |||
Proceeds from sales of securities available for sale | 45,601 | 8 | |||
Purchases of Federal Reserve and Federal Home Loan Bank stock, net | (10,372) | (2,263) | |||
Net increase in loans | (206,948) | (138,044) | |||
Payments related to FDIC loss share agreements | (1,554) | ||||
Payment to FDIC for termination of loss share agreements | (2,012) | ||||
Proceeds from sales of foreclosed real estate | 6,468 | 6,670 | |||
Purchases of premises and equipment | (3,040) | (6,876) | |||
Proceeds from sales of premises and equipment | 114 | 21 | |||
Proceeds from branch sale | 26,211 | ||||
Net cash received (paid) in acquisitions | 48,636 | (53,640) | |||
Net cash used by investing activities | (107,689) | (185,517) | |||
Cash Flows From Financing Activities | |||||
Net increase in deposits | 118,752 | 122,476 | |||
Net increase in borrowings | 106,980 | 50,000 | |||
Cash dividends paid - common stock | (5,617) | (4,760) | |||
Cash dividends paid - preferred stock | (175) | ||||
Proceeds from stock option exercises | 0 | 0 | 287 | 375 | |
Net cash provided by financing activities | 220,402 | 167,916 | |||
Increase in cash and cash equivalents | 102,854 | 14,065 | |||
Cash and cash equivalents, beginning of period | 305,993 | 267,268 | 267,268 | ||
Cash and cash equivalents, end of period | $ 408,847 | $ 281,333 | 408,847 | 281,333 | $ 305,993 |
Supplemental Disclosures of Cash Flow Information: | |||||
Cash paid during the period for: interest | 8,115 | 5,672 | |||
Cash paid during the period for: income taxes | 15,275 | 10,511 | |||
Non-cash transactions: | |||||
Unrealized gain (loss) on securities available for sale, net of taxes | 2,223 | 1,906 | |||
Foreclosed loans transferred to other real estate | $ 3,897 | $ 6,968 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of September 30, 2017 and 2016 and the consolidated results of operations and consolidated cash flows for the periods ended September 30, 2017 and 2016. All such adjustments were of a normal, recurring nature. Reference is made to the 2016 Annual Report on Form 10-K filed with the SEC for a discussion of accounting policies and other relevant information with respect to the financial statements. The results of operations for the periods ended September 30, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated all subsequent events through the date the financial statements were issued. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 2 – Accounting Policies Note 1 to the 2016 Annual Report on Form 10-K filed with the SEC contains a description of the accounting policies followed by the Company and discussion of recent accounting pronouncements. The following paragraphs update that information as necessary. In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The Company can apply the guidance using a full retrospective approach or a modified retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. The guidance will be effective for the Company for reporting periods beginning after December 31, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This update is intended to improve the recognition and measurement of financial instruments and it requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of available for sale debt securities in combination with other deferred tax assets. The guidance also provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes and requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued new guidance on accounting for leases, which generally requires all leases to be recognized in the statement of financial position by recording an asset representing its right to use the underlying asset and recording a liability, which represents the Company’s obligation to make lease payments. The provisions of this guidance are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Liabilities topic of the Accounting Standards Codification to address the current and potential future diversity in practice related to the derecognition of a prepaid stored-value product liability. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Investments—Equity Method and Joint Ventures topic of the Accounting Standards Codification to eliminate the requirement to retroactively adopt the equity method of accounting and instead apply the equity method of accounting starting with the date it qualifies for that method. The amendments were effective for the Company on January 1, 2017. The Company will apply the guidance prospectively to any increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company’s adoption of this amendment did not have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments were effective for the Company on January 1, 2017 and the adoption of this amendment did not have a material effect on its financial statements. 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 loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. The guidance also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The Company will apply the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, the Company does not expect to elect that option. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its consolidated financial statements, however, the Company expects the adoption of this guidance to result in an increase in the recorded allowance for loan losses. In August 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company does not expect these amendments to have a material effect on its financial statements. In October 2016, the FASB amended the Consolidation topic of the Accounting Standards Codification to revise the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments were effective for the Company on January 1, 2017 and the Company’s adoption of this amendment did not have a material effect on its financial statements. In November 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how restricted cash is presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In January 2017, the FASB issued guidance to clarify the definition of a business in the Business Combinations topic of the Accounting Standards Codification with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendment is intended to address concerns that the existing definition of a business has been applied too broadly and has resulted in many transactions being recorded as business acquisitions that in substance are more akin to asset acquisitions. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017 . In January 2017, the FASB issued 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. The amount of goodwill impairment will now be 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 will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect this amendment to have a material effect on its financial statements. In March 2017, the FASB amended the requirements in the Compensation—Retirement Benefits topic of the Accounting Standards Codification related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, the FASB amended the requirements in the Receivables—Nonrefundable Fees and Other Costs topic of the Accounting Standards Codification related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In May 2017, the FASB amended the requirements in the Compensation—Stock Compensation topic of the Accounting Standards Codification related to changes to the terms or conditions of a share-based payment award. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments will be effective for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. 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. |
Reclassifications
Reclassifications | 9 Months Ended |
Sep. 30, 2017 | |
Reclassifications [Abstract] | |
Reclassifications | Note 3 – Reclassifications Certain amounts reported in the period ended September 30, 2016 have been reclassified to conform to the presentation for September 30, 2017. These reclassifications had no effect on net income or shareholders’ equity for the periods presented, nor did they materially impact trends in financial information. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4 – Acquisitions Since January 1, 2016, the Company completed the acquisitions described below. The results of each acquired company/branch are included in the Company’s results beginning on its respective acquisition date. (1) On January 1, 2016, First Bank Insurance completed the acquisition of Bankingport, Inc. (“Bankingport”). The results of Bankingport are included in the Company’s results beginning on the January 1, 2016 acquisition date. Bankingport was an insurance agency based in Sanford, North Carolina. This acquisition represented an opportunity to expand the insurance agency operations into a contiguous and significant banking market for the Company. Also, this acquisition provided the Company with a larger platform for leveraging insurance services throughout the Company’s bank branch network. The deal value was $2.2 million and the transaction was completed on January 1, 2016 with the Company paying $0.7 million in cash and issuing 79,012 shares of its common stock, which had a value of approximately $1.5 million. In connection with the acquisition, the Company also paid $1.1 million to purchase the office space previously leased by Bankingport. This acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of Bankingport were recorded based on estimates of fair values as of January 1, 2016. In connection with this transaction, the Company recorded $1.7 million in goodwill, which is non-deductible for tax purposes, and $0.7 million in other amortizable intangible assets. (2) On May 5, 2016, the Company completed the acquisition of SBA Complete, Inc. (“SBA Complete”). The results of SBA Complete are included in the Company’s results beginning on the May 5, 2016 acquisition date. SBA Complete is a consulting firm that specializes in consulting with financial institutions across the country related to Small Business Administration (“SBA”) loan origination and servicing. The deal value was approximately $8.5 million with the Company paying $1.5 million in cash and issuing 199,829 shares of its common stock, which had a value of approximately $4.0 million. Per the terms of the agreement, the Company recorded an earn-out liability initially valued at $3.0 million, which will be paid in shares of Company stock in annual distributions over a three-year period if pre-determined goals are met for those three years. This acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of SBA Complete were recorded based on estimates of fair values, which according to applicable accounting guidance, are subject to change for twelve months following the acquisition. In connection with this transaction, the Company originally recorded $5.6 million in goodwill, which was non-deductible for tax purposes, and $2.0 million in other amortizable intangible assets. In the second quarter of 2017, the Company recorded a measurement period adjustment to reduce the earn-out liability and goodwill by $1.2 million. (3) On July 15, 2016, the Company completed a branch exchange with First Community Bank headquartered in Bluefield, Virginia. In the branch exchange transaction, First Bank acquired six of First Community Bank’s branches located in North Carolina, while concurrently selling seven of its branches in the southwestern area of Virginia to First Community Bank. In connection with the sale, the Company sold $150.6 million in loans, $5.7 million in premises and equipment and $134.3 million in deposits to First Community Bank. In connection with the sale, the Company received a deposit premium of $3.8 million, removed $1.0 million of allowance for loan losses associated with the sold loans, allocated and wrote-off $3.5 million of previously recorded goodwill, and recorded a net gain of $1.5 million in this transaction. In connection with the purchase transaction, the Company acquired assets with a fair value of $157.2 million, including $152.2 million in loans and $3.4 million in premises and equipment. Additionally, the Company assumed $111.3 million in deposits and $0.2 million in other liabilities. In connection with the purchase, the Company recorded: i) a discount on acquired loans of $1.5 million, ii) a premium on deposits of $0.3 million, iii) a $1.2 million core deposit intangible, and iv) $5.4 million in goodwill. The branch acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of the acquired branches were recorded on the Company’s balance sheet at their fair values as of July 15, 2016 and were subject to change for twelve months following the acquisition. The related results of operations for the acquired branches have been included in the Company’s consolidated statement of income since that date. The goodwill recorded in the branch exchange is deductible for tax purposes. (4) On March 3, 2017, the Company completed the acquisition of Carolina Bank Holdings, Inc. (“Carolina Bank”), headquartered in Greensboro, North Carolina, pursuant to an Agreement and Plan of Merger and Reorganization dated June 21, 2016. The results of Carolina Bank are included in First Bancorp’s results beginning on the March 3, 2017 acquisition date. Carolina Bank Holdings, Inc. was the parent company of Carolina Bank, a North Carolina state-chartered bank with eight bank branches located in the North Carolina cities of Greensboro, High Point, Burlington, Winston-Salem, and Asheboro, and mortgage offices in Burlington, Hillsborough, and Sanford. The acquisition complements the Company’s recent expansion into several of these high-growth markets and increases its market share in others with facilities, operations and experienced staff already in place. The Company was willing to record goodwill primarily due to the reasons just noted, as well as the positive earnings of Carolina Bank. The total merger consideration consisted of $25.3 million in cash and 3,799,471 million shares of the Company’s common stock, with each share of Carolina Bank common stock being exchanged for either $20.00 in cash or 1.002 shares of the Company’s stock, subject to the total consideration being 75% stock / 25% cash. The issuance of common stock was valued at $114,478,000 and was based on the Company’s closing stock price on March 3, 2017 of $30.13 per share. This acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of Carolina Bank were recorded based on estimates of fair values as of March 3, 2017. The Company may change its valuations of acquired Carolina Bank assets and liabilities for up to one year after the acquisition date. The table below is a condensed balance sheet disclosing the amount assigned to each major asset and liability category of Carolina Bank on March 3, 2017, and the related fair value adjustments recorded by the Company to reflect the acquisition. The $65.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes. ($ in thousands) As Initial Fair Measurement As Assets Cash and cash equivalents $ 81,466 (2 ) (a) — 81,464 Securities 49,629 (261 ) (b) — 49,368 Loans, gross 505,560 (5,469 ) (c) 146 (l) 497,522 (2,715 ) (d) — Allowance for loan losses (5,746 ) 5,746 (e) — — Premises and equipment 17,967 4,251 (f) (319 ) (m) 21,899 Core deposit intangible — 8,790 (g) — 8,790 Other 34,976 (4,804 ) (h) 2,225 (n) 32,397 Total 683,852 5,536 2,052 691,440 Liabilities Deposits $ 584,950 431 (i) — 585,381 Borrowings 21,855 (2,855 ) (j) (262 ) (o) 18,738 Other 12,855 225 (k) — 13,080 Total 619,660 (2,199 ) (262 ) 617,199 Net identifiable assets acquired 74,241 Total cost of acquisition Value of stock issued $ 114,478 Cash paid in the acquisition 25,279 Total cost of acquisition 139,757 Goodwill recorded related to acquisition of Carolina Bank $ 65,516 Explanation of Fair Value Adjustments (a) This adjustment was recorded to a short-term investment to its estimated fair value. (b) This fair value adjustment was recorded to adjust the securities portfolio to its estimated fair value. (c) This fair value adjustment represents the amount necessary to reduce performing loans to their fair value due to interest rate factors and credit factors. Assuming the loans continue to perform, this amount will be amortized to increase interest income over the remaining lives of the related loans. (d) This fair value adjustment was recorded to write-down purchased credit impaired loans assumed in the acquisition to their estimated fair market value. (e) This fair value adjustment reduced the allowance for loan losses to zero as required by relevant accounting guidance. (f) This adjustment represents the amount necessary to increase premises and equipment from its book value on the date of acquisition to its estimated fair market value. (g) This fair value adjustment represents the value of the core deposit base assumed in the acquisition based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as expense on an accelerated basis over seven years. (h) This fair value adjustment primarily represents the net deferred tax liability associated with the other fair value adjustments made to record the transaction. (i) This fair value adjustment was recorded because the weighted average interest rate of Carolina Bank’s time deposits exceeded the cost of similar wholesale funding at the time of the acquisition. This amount will be amortized to reduce interest expense on an accelerated basis over their remaining five year life. (j) This fair value adjustment was primarily recorded because the interest rate of Carolina Bank’s trust preferred security was less than the current interest rate on similar instruments. This amount will be amortized on approximately a straight-line basis to increase interest expense over the remaining life of the related borrowing, which is 18 years. (k) This fair value adjustment represents miscellaneous adjustments needed to record assets and liabilities at their fair value. (l) This fair value adjustment was a miscellaneous adjustment to increase the initial fair value of gross loans. (m) This fair value adjustment relates to miscellaneous adjustment to decrease the initial fair value of premises and equipment. (n) This fair value adjustment relates to changes in the estimate of deferred tax assets/liabilities associated with the acquisition and a miscellaneous adjustment to decrease the initial fair value of foreclosed real estate acquired in the transaction. (o) This fair value adjustment relates to miscellaneous adjustments to decrease the initial fair value of borrowings. The following unaudited pro forma financial information presents the combined results of the Company and Carolina Bank as if the acquisition had occurred as of January 1, 2016, after giving effect to certain adjustments, including amortization of the core deposit intangible, and related income tax effects. The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Carolina Bank constituted a single entity during such period. ($ in thousands, except share data) Pro Forma Combined Pro Forma Combined Net interest income $ 119,899 109,787 Noninterest income 35,236 24,818 Total revenue 155,135 134,605 Net income available to common shareholders 35,176 16,584 Earnings per common share Basic $ 1.43 0.70 Diluted 1.43 0.68 For purposes of the supplemental pro forma information, merger-related expenses of $4.4 million that were recorded in the Company’s consolidated statements of income for the nine months ended September 30, 2017 and $4.6 million of merger-related expenses that were recorded by Carolina Bank in 2017 prior to the merger date are reflected above in the pro forma presentation for 2016. (5) On September 1, 2017, First Bank Insurance completed the acquisition of Bear Insurance Service (“Bear Insurance”). The results of Bear Insurance are included in the Company’s results beginning on the September 1, 2017 acquisition date. Bear Insurance, an insurance agency based in Albemarle, North Carolina, with four locations in Stanly, Cabarrus, and Montgomery counties and annual commission income of approximately $4 million, represented an opportunity to complement the insurance agency operations in these markets and the surrounding areas. Also, this acquisition provided the Company with a larger platform for leveraging insurance services throughout the Company’s bank branch network. The transaction value was $9.8 million and the transaction was completed on September 1, 2017 with the Company paying $7.9 million in cash and issuing 13,374 shares of its common stock, which had a value of approximately $0.4 million. Per the terms of the agreement, the Company also recorded an earn-out liability valued at $1.2 million, which will be paid as a cash distribution after a four-year period if pre-determined goals are met for the periods. This acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of Bear Insurance were recorded based on estimates of fair values as of September 1, 2017. In connection with this transaction, the Company recorded $5.3 million in goodwill, which is deductible for tax purposes, and $3.9 million in other amortizable intangible assets, which are also deductible for tax purposes. |
Equity-Based Compensation Plans
Equity-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Equity-Based Compensation Plans [Abstract] | |
Equity-Based Compensation Plans | Note 5 – Equity-Based Compensation Plans The Company recorded total stock-based compensation expense of $204,000 and $146,000 for the three months ended September 30, 2017 and 2016, respectively, and $860,000 and $527,000 for the nine months ended September 30, 2017 and 2016, respectively. Of the $860,000 in expense that was recorded in 2017, approximately $320,000 related to the June 1, 2017 director grants, and is classified as “other operating expenses” in the Consolidated Statements of Income. The remaining $540,000 in expense relates to the employee grants discussed below and is recorded as “salaries expense.” Stock based compensation is reflected as an adjustment to cash flows from operating activities on the Company’s Consolidated Statement of Cash Flows. The Company recognized $318,000 and $206,000 of income tax benefits related to stock based compensation expense in the income statement for the nine months ended September 30, 2017 and 2016, respectively. At September 30, 2017, the Company had the following equity-based compensation plans: the First Bancorp 2014 Equity Plan and the First Bancorp 2007 Equity Plan. The Company’s shareholders approved all equity-based compensation plans. The First Bancorp 2014 Equity Plan became effective upon the approval of shareholders on May 8, 2014. As of September 30, 2017, the First Bancorp 2014 Equity Plan was the only plan that had shares available for future grants, and there were 803,946 shares remaining available for grant. The First Bancorp 2014 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 First Bancorp 2014 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 grants to employees have either had performance vesting conditions, service vesting conditions, or both. Compensation expense for these grants is recorded over the various service periods based on the estimated number of equity grants that are probable to vest. No compensation cost is recognized for grants that do not vest and any previously recognized compensation cost will be reversed. The Company issues new shares of common stock when options are exercised. Certain of the Company’s stock option 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 options and awards that will ultimately vest. Over the past five years, there have only been minimal amounts of forfeitures, and therefore the Company assumes that all awards granted without performance conditions will become vested. The Company typically grants shares of common stock to each non-employee director in June of each year. On June 1, 2017, the Company granted 11,190 shares of common stock to non-employee directors (1,119 shares per director), at a fair market value of $28.59 per share, which was the closing price of the Company’s common stock on that date, which resulted in $320,000 in expense. On June 1, 2016, the Company granted 6,584 shares of common stock to non-employee directors (823 shares per director), at a fair market value of $19.56 per share, which was the closing price of the Company’s common stock on that date, which resulted in $129,000 in expense. The Company’s senior officers receive their annual bonus earned under the Company’s annual incentive plan in a mix of 50% cash and 50% stock, with the stock being subject to a three year vesting term. In the last three years, a total of 55,648 shares of restricted stock have been granted related to performance in the preceding fiscal years. Total compensation expense associated with those grants was $758,000 and is being recognized over the respective vesting periods. The Company recorded $66,000 and $55,000 in compensation expense during the three months ended September 30, 2017 and 2016, respectively, and $216,000 and $165,000 for the nine months ended September 30, 2017 and 2016, respectively, related to these grants and expects to record $66,000 in compensation expense during the last remaining quarter of 2017. In the last three years, the Compensation Committee of the Company’s Board of Directors also granted 130,059 shares of stock to various employees of the Company to promote retention. The total value associated with these grants amounted to $2.8 million, and is being recorded as an expense over their three year vesting periods. For the three months ended September 30, 2017 and 2016, total compensation expense related to these grants was $138,000 and $92,000, respectively, and for the nine months ended September 30, 2017 and 2016, total compensation expense was $324,000 and $234,000, respectively. The Company expects to record $167,000 in compensation expense during the fourth quarter of 2017. All grants were issued based on the closing price of the Company’s common stock on the date of the grant. The following table presents information regarding the activity for the first nine months of 2017 related to the Company’s outstanding restricted stock: Long-Term Restricted Stock Number of Units Weighted-Average Nonvested at January 1, 2017 91,790 $ 18.65 Granted during the period 48,322 31.05 Vested during the period (2,282 ) 18.27 Forfeited or expired during the period (8,535 ) 18.34 Nonvested at September 30, 2017 129,295 $ 23.31 In years prior to 2009, stock options were the primary form of equity grant utilized by the Company. The stock options had a term of ten years. In a change in control (as defined in the plans), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested. At September 30, 2017, there were 40,689 stock options outstanding related to the two First Bancorp plans, with exercise prices ranging from $14.35 to $16.81. The following table presents information regarding the activity for the first nine months of 2017 related to the Company’s stock options outstanding: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at January 1, 2017 59,948 $ 17.18 Granted — — Exercised (19,259 ) 19.44 $ 193,844 Forfeited — — Expired — — Outstanding at September 30, 2017 40,689 $ 16.11 0.9 $ 744,619 Exercisable at September 30, 2017 40,689 $ 16.11 0.9 $ 744,619 During the three and nine months ended September 30, 2017, the Company received $0 and $287,000, respectively, as a result of stock option exercises. During the three and nine months ended September 30, 2016, the Company received $0 and $375,000, respectively, as a result of stock option exercises. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 6 – Earnings Per Common Share Basic Earnings Per Common Share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding 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 and the Company’s Series C Preferred stock, which was exchanged for common stock at a one-for-one ratio on December 22, 2016 - see Note 19 of the Company’s 2016 Annual Report on Form 10-K for additional detail. 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 number of unvested shares less the number of shares assumed to be bought back by the Company in the open market at the average market price with the amount of proceeds being equal to the average deferred compensation for the reporting period. 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 the preferred stock that was outstanding during the periods in 2016, dividends on the preferred stock were added back to net income and the preferred shares assumed to be converted were included in the number of shares outstanding. If any of the potentially dilutive common stock issuances have an anti-dilutive effect, the potentially dilutive common stock issuance is disregarded. The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share: For the Three Months Ended September 30, 2017 2016 ($ in thousands except per share amounts) Income Shares Per Share Income Shares Per Share Basic EPS Net income available to common shareholders $ 13,086 24,607,516 $ 0.53 $ 4,620 20,007,518 $ 0.23 Effect of Dilutive Securities — 87,779 58 778,171 Diluted EPS per common share $ 13,086 24,695,295 $ 0.53 $ 4,678 20,785,689 $ 0.23 For the Nine Months September 30, 2017 2016 ($ in thousands except per share amounts) Income Shares Per Share Income Shares Per Share Basic EPS Net income available to common shareholders $ 31,795 23,728,262 $ 1.34 $ 18,979 19,904,226 $ 0.95 Effect of Dilutive Securities — 98,749 175 792,899 Diluted EPS per common share $ 31,795 23,827,011 $ 1.33 $ 19,154 20,697,125 $ 0.93 For both the three and nine months ended September 30, 2017, there were no options that were antidilutive. For both the three and nine months ended September 30, 2016, there were 16,250 options that were antidilutive because the exercise price exceeded the average market price for the period, and thus are not included in the calculation to determine the effect of dilutive securities. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Securities | Note 7 – Securities The book values and approximate fair values of investment securities at September 30, 2017 and December 31, 2016 are summarized as follows: September 30, 2017 December 31, 2016 Amortized Fair Unrealized Amortized Fair Unrealized ($ in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Securities available for sale: Government-sponsored enterprise securities $ 9,000 8,992 1 (9 ) 17,497 17,490 — (7 ) Mortgage-backed securities 155,684 155,535 713 (862 ) 151,001 148,065 155 (3,091 ) Corporate bonds 33,802 34,397 660 (65 ) 33,833 33,600 91 (324 ) Equity securities — — — — 83 174 96 (5 ) Total available for sale $ 198,486 198,924 1,374 (936 ) 202,414 199,329 342 (3,427 ) Securities held to maturity: Mortgage-backed securities $ 67,708 67,529 15 (194 ) 80,585 79,283 — (1,302 ) State and local governments 55,448 57,349 1,908 (7 ) 49,128 50,912 1,815 (31 ) Total held to maturity $ 123,156 124,878 1,923 (201 ) 129,713 130,195 1,815 (1,333 ) All of the Company’s mortgage-backed securities were issued by government-sponsored corporations, except for one private mortgage-backed security with a fair value of $490,000 at September 30, 2017. The following table presents information regarding securities with unrealized losses at September 30, 2017: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 6,491 9 — — 6,491 9 Mortgage-backed securities 110,437 555 24,250 501 134,687 1,056 Corporate bonds — — 935 65 935 65 State and local governments — — 813 7 813 7 Total temporarily impaired securities $ 116,928 564 25,998 573 142,926 1,137 The following table presents information regarding securities with unrealized losses at December 31, 2016: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 7,990 7 — — 7,990 7 Mortgage-backed securities 196,999 3,841 19,001 552 216,000 4,393 Corporate bonds 27,027 259 935 65 27,962 324 Equity securities — — 7 5 7 5 State and local governments 801 31 — — 801 31 Total temporarily impaired securities $ 232,817 4,138 19,943 622 252,760 4,760 In the above tables, all of the non-equity securities that were in an unrealized loss position at September 30, 2017 and December 31, 2016 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 has evaluated the collectability of each of these bonds and has concluded that there is 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. The Company has also concluded that each of the equity securities in an unrealized loss position at December 31, 2016 was in such a position due to temporary fluctuations in the market prices of the securities. The Company’s policy is to record an impairment charge for any of these equity securities that remains in an unrealized loss position for twelve consecutive months unless the amount is insignificant. The book values and approximate fair values of investment securities at September 30, 2017, 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 Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Debt securities Due within one year $ — — 1,872 1,883 Due after one year but within five years 10,008 10,037 23,907 24,681 Due after five years but within ten years 27,794 28,242 23,979 25,040 Due after ten years 5,000 5,110 5,690 5,745 Mortgage-backed securities 155,684 155,535 67,708 67,529 Total securities $ 198,486 198,924 123,156 124,878 At September 30, 2017 and December 31, 2016, investment securities with carrying values of $213,825,000 and $147,009,000, respectively, were pledged as collateral for public deposits. In the first nine months of 2017, the Company received proceeds from sales of securities of $45,601,000 and recorded losses of $235,000 from the sales. In the first nine months of 2016, the Company received proceeds from sales of securities of $8,000 and recorded $3,000 in gains from the sales. Included in “other assets” in the Consolidated Balance Sheets are cost method investments in Federal Home Loan Bank (“FHLB”) stock and Federal Reserve Bank of Richmond (“FRB”) stock totaling $30,198,000 and $19,826,000 at September 30, 2017 and December 31, 2016, respectively. The FHLB stock had a cost and fair value of $18,507,000 and $12,588,000 at September 30, 2017 and December 31, 2016, 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 $11,691,000 and $7,238,000 at September 30, 2017 and December 31, 2016, 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. |
Loans and Asset Quality Informa
Loans and Asset Quality Information | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Asset Quality Information [Abstract] | |
Loans and Asset Quality Information | Note 8 – Loans and Asset Quality Information Prior to September 22, 2016, the Company’s banking subsidiary, First Bank, had certain loans and foreclosed real estate that were covered by loss share agreements between the FDIC and First Bank which afforded First Bank significant loss protection - see Note 2 to the financial statements included in the Company’s 2011 Annual Report on Form 10-K for detailed information regarding FDIC-assisted purchase transactions. On September 22, 2016, the Company terminated all of the loss share agreements with the FDIC, such that all future losses and recoveries on loans and foreclosed real estate associated with the failed banks acquired through FDIC-assisted transactions will be borne solely by First Bank. In the information presented below, the term “covered” is used to describe assets that were subject to FDIC loss share agreements, while the term “non-covered” refers to the Company’s legacy assets, which were not included in any type of loss share arrangement. As discussed previously, all loss share agreements were terminated during 2016 and thus the entire loan portfolio is now classified as non-covered. Certain prior period disclosures will continue to present the breakout of the loan portfolio between covered and non-covered. On March 3, 2017, the Company acquired Carolina Bank (see Note 4 for more information). As a result of this acquisition, the Company recorded loans with a fair value of $497.5 million. Of those loans, $19.3 million were considered to be purchased credit impaired (“PCI”) loans, which are loans for which it is probable at acquisition date that all contractually required payments will not be collected. The remaining loans are considered to be purchased non-impaired loans and their related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan. The following table relates to Carolina Bank acquired PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date. ($ in thousands) Carolina Bank Acquisition Contractually required payments $ 27,108 Nonaccretable difference (4,237 ) Cash flows expected to be collected at acquisition 22,871 Accretable yield (3,617 ) Fair value of PCI loans at acquisition date $ 19,254 The following table relates to acquired Carolina Bank purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date. ($ in thousands) Carolina Bank Acquisition Contractually required payments $ 569,980 Fair value of acquired loans at acquisition date 478,515 Contractual cash flows not expected to be collected 3,650 The following is a summary of the major categories of total loans outstanding: ($ in thousands) September 30, 2017 December 31, 2016 September 30, 2016 Amount Percentage Amount Percentage Amount Percentage All loans: Commercial, financial, and agricultural $ 376,940 11% $ 261,813 9% $ 248,877 9% Real estate – construction, land development & other land loans 450,746 13% 354,667 13% 327,863 12% Real estate – mortgage – residential (1-4 family) first mortgages 796,222 23% 750,679 28% 756,880 29% Real estate – mortgage – home equity loans / lines of credit 315,322 9% 239,105 9% 239,049 9% Real estate – mortgage – commercial and other 1,431,934 42% 1,049,460 39% 1,026,328 39% Installment loans to individuals 59,028 2% 55,037 2% 52,264 2% Subtotal 3,430,192 100% 2,710,761 100% 2,651,261 100% Unamortized net deferred loan costs (fees) (437 ) (49 ) 198 Total loans $ 3,429,755 $ 2,710,712 $ 2,651,459 The following table presents information regarding covered purchased non-impaired loans since January 1, 2016. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond. All balances of covered loans were transferred to non-covered as of the termination of the loss share agreements. ($ in thousands) Carrying amount of nonimpaired covered loans at January 1, 2016 $ 101,252 Principal repayments (7,997 ) Transfers to foreclosed real estate (1,036 ) Net loan recoveries 1,784 Accretion of loan discount 1,908 Transfer to non-covered loans due to expiration of loss-share agreement, April 1, 2016 (17,530 ) Transfer to non-covered loans due to termination of loss-share agreements, September 22, 2016 (78,381 ) Carrying amount of nonimpaired covered loans at September 30, 2016 $ — The following table presents information regarding all PCI loans since January 1, 2016. ($ in thousands) Purchased Credit Impaired Loans Accretable Carrying Balance at January 1, 2016 $ — 1,970 Change due to payments received — (1,386 ) Change due to loan charge-off — (70 ) Balance at December 31, 2016 — 514 Additions due to acquisition of Carolina Bank 3,617 19,254 Accretion (1,326 ) 1,326 Change due to payments received — (5,585 ) Transfer to foreclosed real estate — (69 ) Other — (406 ) Balance at September 30, 2017 $ 2,291 15,034 During the first nine months of 2017, the Company received $848,000 in payments that exceeded the carrying amount of the related PCI loans, of which $775,000 was recognized as loan discount accretion income and $73,000 was recorded as additional loan interest income. During the first nine months of 2016, the Company received $1,108,000 in payments that exceeded the carrying amount of the related PCI loans, of which $780,000 was recognized as loan discount accretion income, $295,000 was recorded as additional loan interest income, and $33,000 was recorded as a recovery. Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate. Nonperforming assets are summarized as follows: ASSET QUALITY DATA ($ in thousands) September 30, December 31, September 30, Nonperforming assets Nonaccrual loans $ 23,350 27,468 32,796 Restructured loans - accruing 20,330 22,138 27,273 Accruing loans > 90 days past due — — — Total nonperforming loans 43,680 49,606 60,069 Foreclosed real estate 9,356 9,532 10,103 Total nonperforming assets $ 53,036 59,138 70,172 Purchased credit impaired loans not included above (1) $ 15,034 — — (1) In the March 3, 2017 acquisition of Carolina Bank Holdings, Inc., the Company acquired $19.3 million in purchased credit impaired loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.4 million in purchased credit impaired loans at September 30, 2017 that are contractually past due 90 days or more. At September 30, 2017 and December 31, 2016, the Company had $0.9 million and $1.7 million in residential mortgage loans in process of foreclosure, respectively. The following is a summary of the Company’s nonaccrual loans by major categories. ($ in thousands) September 30, December 31, Commercial, financial, and agricultural $ 996 1,842 Real estate – construction, land development & other land loans 1,565 2,945 Real estate – mortgage – residential (1-4 family) first mortgages 14,878 16,017 Real estate – mortgage – home equity loans / lines of credit 2,250 2,355 Real estate – mortgage – commercial and other 3,534 4,208 Installment loans to individuals 127 101 Total $ 23,350 27,468 The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2017. ($ in thousands) Accruing Accruing Accruing Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 325 — — 996 375,364 376,685 Real estate – construction, land development & other land loans 432 — — 1,565 447,873 449,870 Real estate – mortgage – residential (1-4 family) first mortgages 4,911 472 — 14,878 772,651 792,912 Real estate – mortgage – home equity loans / lines of credit 2,455 — — 2,250 309,906 314,611 Real estate – mortgage – commercial and other 1,094 469 — 3,534 1,417,012 1,422,109 Installment loans to individuals 145 79 — 127 58,620 58,971 Purchased credit impaired 611 — 449 — 13,974 15,034 Total $ 9,973 1,020 449 23,350 3,395,400 3,430,192 Unamortized net deferred loan fees (437 ) Total loans $ 3,429,755 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2016. ($ in thousands) Accruing Accruing Accruing Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 92 — — 1,842 259,879 261,813 Real estate – construction, land development & other land loans 473 168 — 2,945 351,081 354,667 Real estate – mortgage – residential (1-4 family) first mortgages 4,487 443 — 16,017 729,732 750,679 Real estate – mortgage – home equity loans / lines of credit 1,751 178 — 2,355 234,821 239,105 Real estate – mortgage – commercial and other 1,482 449 — 4,208 1,042,807 1,048,946 Installment loans to individuals 186 193 — 101 54,557 55,037 Purchased credit impaired — — — — 514 514 Total $ 8,471 1,431 — 27,468 2,673,391 2,710,761 Unamortized net deferred loan fees (49 ) Total loans $ 2,710,712 The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2017. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Total As of and for the three months ended September 30, 2017 Beginning balance $ 3,430 2,676 7,085 2,057 6,153 1,074 1,550 24,025 Charge-offs (131 ) (43 ) (499 ) (213 ) (159 ) (162 ) — (1,207 ) Recoveries 330 809 170 120 275 71 — 1,775 Provisions (314 ) (973 ) (281 ) (49 ) (271 ) 45 1,843 — Ending balance $ 3,315 2,469 6,475 1,915 5,998 1,028 3,393 24,593 As of and for the nine months ended September 30, 2017 Beginning balance $ 3,829 2,691 7,704 2,420 5,098 1,145 894 23,781 Charge-offs (1,335 ) (312 ) (1,746 ) (791 ) (573 ) (521 ) — (5,278 ) Recoveries 848 2,280 806 250 973 210 — 5,367 Provisions (27 ) (2,190 ) (289 ) 36 500 194 2,499 723 Ending balance $ 3,315 2,469 6,475 1,915 5,998 1,028 3,393 24,593 Ending balances as of September 30, 2017: Allowance for loan losses Individually evaluated for impairment $ 144 23 929 — 487 — — 1,583 Collectively evaluated for impairment $ 3,171 2,446 5,546 1,915 5,511 1,028 3,393 23,010 Purchased credit impaired $ — — — — — — — — Loans receivable as of September 30, 2017: Ending balance – total $ 376,940 450,746 796,222 315,322 1,431,934 59,028 — 3,430,192 Unamortized net deferred loan fees (437 ) Total loans $ 3,429,755 Ending balances as of September 30, 2017: Loans Individually evaluated for impairment $ 490 3,072 14,987 52 9,443 — — 28,044 Collectively evaluated for impairment $ 376,195 446,798 777,925 314,559 1,412,666 58,971 — 3,387,114 Purchased credit impaired $ 255 876 3,310 711 9,825 57 — 15,034 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2016. There were no covered loans at December 31, 2016 and all reserves associated with previously covered loans have been transferred to the non-covered allowance. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Covered Total As of and for the year ended December 31, 2016 Beginning balance $ 4,742 3,754 7,832 2,893 5,816 1,051 696 1,799 28,583 Charge-offs (2,271 ) (1,101 ) (3,815 ) (969 ) (1,005 ) (1,008 ) (1 ) (244 ) (10,414 ) Recoveries 805 1,422 1,060 250 836 354 — 1,958 6,685 Transfer from covered status 56 65 839 293 127 — 1 (1,381 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) — — (1,050 ) Provisions 760 (1,410 ) 2,135 63 (448 ) 811 198 (2,132 ) (23 ) Ending balance $ 3,829 2,691 7,704 2,420 5,098 1,145 894 — 23,781 Ending balances as of December 31, 2016: Allowance for loan losses Individually evaluated for impairment $ 7 184 1,339 5 105 — — — 1,640 Collectively evaluated for impairment $ 3,822 2,507 6,365 2,415 4,993 1,145 894 — 22,141 Purchased credit impaired $ — — — — — — — — — Loans receivable as of December 31, 2016: Ending balance – total $ 261,813 354,667 750,679 239,105 1,049,460 55,037 — — 2,710,761 Unamortized net deferred loan fees (49 ) Total loans $ 2,710,712 Ending balances as of December 31, 2016: Loans Individually evaluated for impairment $ 644 4,001 20,807 280 6,494 — — — 32,226 Collectively evaluated for impairment $ 261,169 350,666 729,872 238,825 1,042,452 55,037 — — 2,678,021 Purchased credit impaired $ — — — — 514 — — — 514 The following table presents the activity in the allowance for loan losses for the three and nine months ended September 30, 2016. There were no covered loans at September 30, 2016 and all reserves associated with previously covered loans have been transferred to the non-covered allowance. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Covered Total As of and for the three months ended September 30, 2016 Beginning balance $ 4,282 2,899 7,860 2,285 5,571 1,480 572 1,074 26,023 Charge-offs (495 ) (161 ) (692 ) (196 ) (288 ) (223 ) — — (2,055 ) Recoveries 252 588 377 69 317 55 — — 1,658 Transfer from covered status — 3 788 281 1 — 1 (1,074 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) (1 ) — (1,051 ) Provisions 755 (612 ) (492 ) 54 (165 ) (38 ) 498 — — Ending balance $ 4,531 2,678 7,494 2,383 5,208 1,211 1,070 — 24,575 As of and for the nine months ended September 30, 2016 Beginning balance $ 4,742 3,754 7,832 2,893 5,816 1,051 696 1,799 28,583 Charge-offs (1,229 ) (638 ) (3,383 ) (930 ) (850 ) (741 ) — (244 ) (8,015 ) Recoveries 554 799 672 188 602 308 — 1,958 5,081 Transfer from covered status 56 65 839 293 127 — 1 (1,381 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) (1 ) — (1,051 ) Provisions 671 (1,263 ) 1,881 49 (259 ) 656 374 (2,132 ) (23 ) Ending balance $ 4,531 2,678 7,494 2,383 5,208 1,211 1,070 — 24,575 Ending balances as of September 30, 2016: Allowance for loan losses Individually evaluated for impairment $ 9 169 1,306 5 444 — — — 1,933 Collectively evaluated for impairment $ 4,522 2,509 6,188 2,372 4,764 1,211 1,070 — 22,636 Loans acquired with deteriorated credit quality $ — — — 6 — — — — 6 Loans receivable as of September 30, 2016: Ending balance – total $ 248,877 327,863 756,880 239,049 1,026,328 52,264 — — 2,651,261 Unamortized net deferred loan costs 198 Total loans $ 2,651,459 Ending balances as of September 30, 2016: Loans Individually evaluated for impairment $ 1,732 4,181 21,611 310 11,291 1 — — 39,126 Collectively evaluated for impairment $ 247,145 323,682 735,062 238,733 1,014,506 52,263 — — 2,611,391 Loans acquired with deteriorated credit quality $ — — 207 6 531 — — — 744 The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of September 30, 2017. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 185 425 — 299 Real estate – mortgage – construction, land development & other land loans 2,838 4,023 — 2,871 Real estate – mortgage – residential (1-4 family) first mortgages 6,461 7,029 — 7,533 Real estate – mortgage –home equity loans / lines of credit 52 79 — 70 Real estate – mortgage –commercial and other 2,158 2,394 — 3,162 Installment loans to individuals — — — 1 Total impaired loans with no allowance $ 11,694 13,950 — 13,936 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 305 305 144 169 Real estate – mortgage – construction, land development & other land loans 234 243 23 570 Real estate – mortgage – residential (1-4 family) first mortgages 8,526 8,721 929 10,198 Real estate – mortgage –home equity loans / lines of credit — — — 83 Real estate – mortgage –commercial and other 7,285 7,392 487 5,354 Installment loans to individuals — — — — Total impaired loans with allowance $ 16,350 16,661 1,583 16,374 Interest income on impaired loans recognized during the nine months ended September 30, 2017 was insignificant. The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2016. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 593 706 — 816 Real estate – mortgage – construction, land development & other land loans 3,221 4,558 — 3,641 Real estate – mortgage – residential (1-4 family) first mortgages 10,035 12,220 — 11,008 Real estate – mortgage –home equity loans / lines of credit 114 146 — 139 Real estate – mortgage –commercial and other 4,598 5,112 — 8,165 Installment loans to individuals — 2 — 1 Total impaired loans with no allowance $ 18,561 22,744 — 23,770 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 51 51 7 202 Real estate – mortgage – construction, land development & other land loans 780 798 184 844 Real estate – mortgage – residential (1-4 family) first mortgages 10,772 11,007 1,339 13,314 Real estate – mortgage –home equity loans / lines of credit 166 166 5 324 Real estate – mortgage –commercial and other 1,896 1,929 105 4,912 Installment loans to individuals — — — 49 Total impaired loans with allowance $ 13,665 13,951 1,640 19,645 Interest income on impaired loans recognized during the year ended December 31, 2016 was insignificant. The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type. The following describes the Company’s internal risk grades in ascending order of likelihood of loss: Risk Grade Description Pass: 1 Loans with virtually no risk, including cash secured loans. 2 Loans with documented significant overall financial strength. These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation. 3 Loans with documented satisfactory overall financial strength. These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances. 4 Loans to borrowers with acceptable financial condition. These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability. 5 Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management. Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. P (Pass) Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. Special Mention: 6 Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. Classified: 7 An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. 8 Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. 9 Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. F (Fail) Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. The following table presents the Company’s recorded investment in loans by credit quality indicators as of September 30, 2017. ($ in thousands) Pass Special Classified Classified Total Commercial, financial, and agricultural $ 365,505 8,974 1,210 996 376,685 Real estate – construction, land development & other land loans 435,960 6,009 6,336 1,565 449,870 Real estate – mortgage – residential (1-4 family) first mortgages 729,341 15,298 33,395 14,878 792,912 Real estate – mortgage – home equity loans / lines of credit 304,114 1,262 6,985 2,250 314,611 Real estate – mortgage – commercial and other 1,384,255 23,736 10,584 3,534 1,422,109 Installment loans to individuals 58,444 224 176 127 58,971 Purchased credit impaired 6,748 5,002 3,284 — 15,034 Total $ 3,284,367 60,505 61,970 23,350 3,430,192 Unamortized net deferred loan fees (437 ) Total loans 3,429,755 The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2016. ($ in thousands) Pass Special Classified Classified Total Commercial, financial, and agricultural $ 247,451 10,560 1,960 1,842 261,813 Real estate – construction, land development & other land loans 335,068 8,762 7,892 2,945 354,667 Real estate – mortgage – residential (1-4 family) first mortgages 678,878 16,998 38,786 16,017 750,679 Real estate – mortgage – home equity loans / lines of credit 226,159 1,436 9,155 2,355 239,105 Real estate – mortgage – commercial and other 1,005,687 26,032 13,019 4,208 1,048,946 Installment loans to individuals 54,421 256 259 101 55,037 Purchased credit impaired — 514 — — 514 Total $ 2,547,664 64,558 71,071 27,468 2,710,761 Unamortized net deferred loan fees (49 ) Total loans 2,710,712 Troubled Debt Restructurings The restructuring of a loan is considered a “troubled debt restructuring” 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, restructuring amortization schedules and other actions intended to minimize potential losses. The vast majority of the Company’s troubled debt restructurings modified related to interest rate reductions combined with restructured amortization schedules. The Company does not generally grant principal forgiveness. All loans classified as troubled debt restructurings are considered to be impaired and are evaluated as such for determination of the allowance for loan losses. The Company’s troubled debt restructurings can be classified as either nonaccrual or accruing based on the loan’s payment status. The troubled debt restructurings that are nonaccrual are reported within the nonaccrual loan totals presented previously. The following table presents information related to loans modified in a troubled debt restructuring during the three months ended September 30, 2017 and 2016. ($ in thousands) For three months ended For the three months ended Number of Pre- Post- Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — 1 $ 1,071 $ 1,071 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 — — — — — — Installment loans to individuals — — — — — — 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 — — — — — — Installment loans to individuals — — — — — — Total TDRs arising during period — $ — $ — 1 $ 1,071 $ 1,071 Total covered TDRs arising during period included above — $ — $ — — $ — $ — The following table presents information related to loans modified in a troubled debt restructuring during the nine months ended September 30, 2017 and 2016. ($ in thousands) For nine months ended For the nine months ended Number of Pre- Post- Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — 1 $ 1,071 $ 1,071 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 3,550 3,525 — — — Installment loans to individuals — — — — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — — — — Real estate – construction, land development & other land loans 1 32 32 — — — Real estate – mortgage – residential (1-4 family) first mortgages 1 215 215 — — — Real estate – mortgage – home equity loans / lines of credit — — — — — — Real estate – mortgage – commercial and other — — — — — — Installment loans to individuals — — — — — — Total TDRs arising during period 7 $ 3,797 $ 3,772 1 $ 1,071 $ 1,071 Total covered TDRs arising during period included above — $ — $ — — $ — $ — Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three months ended September 30, 2017 and 2016 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 three months ended September 30, 2017 For the three months ended September 30, 2016 Number of Recorded Number of Recorded Investment Accruing TDRs that subsequently defaulted Real estate – mortgage – residential (1-4 family) first mortgages — $ — — $ — Total accruing TDRs that subsequently defaulted — $ — — $ — Total covered accruing TDRs that subsequently defaulted included above — $ — — $ — Accruing restructured loans that were modified in the previous 12 months and that defaulted during the nine months ended September 30, 2017 and 2016 are presented in the table below. ($ in thousands) For the nine months ended For the nine months ended Number of Recorded Number of Recorded Accruing TDRs that subsequently defaulted Commercial, financial, and agricultural — $ — 1 $ 44 Real estate – mortgage – residential (1-4 family) first mortgages 2 880 — — Real estate – mortgage – commercial and other — — 1 21 Total accruing TDRs that subsequently defaulted 2 $ 880 2 $ 65 Total covered accruing TDRs that subsequently defaulted included above — $ — 1 $ 44 |
Deferred Loan (Fees) Costs
Deferred Loan (Fees) Costs | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Loan Costs [Abstract] | |
Deferred Loan (Fees) Costs | Note 9 – Deferred Loan (Fees) Costs The amount of loans shown on the Consolidated Balance Sheets includes net deferred loan (fees) costs of approximately ($437,000), ($49,000), and $198,000 at September 30, 2017, December 31, 2016, and September 30, 2016, respectively. |
FDIC Indemnification Asset
FDIC Indemnification Asset | 9 Months Ended |
Sep. 30, 2017 | |
Fdic Indemnification Asset [Abstract] | |
FDIC Indemnification Asset | Note 10 – FDIC Indemnification Asset The Company terminated all loss share agreements with the FDIC effective September 22, 2016. As a result, the remaining balance in the FDIC Indemnification Asset, which represented the estimated amount to be received from the FDIC under the loss share agreements, was written off as indemnification asset expense as of the termination date. The following presents a rollforward of the FDIC indemnification asset from January 1, 2016 through the date of termination. ($ in thousands) Balance at January 1, 2016 $ 8,439 Decrease related to favorable changes in loss estimates (2,246 ) Increase related to reimbursable expenses 205 Cash paid (received) 1,554 Related to accretion of loan discount (2,005 ) Other (236 ) Write off of asset balance upon termination of FDIC loss share agreements effective September 22, 2016 (5,711 ) Balance at September 30, 2016 $ — |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | Note 11 – Goodwill and Other Intangible Assets The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of September 30, 2017, December 31, 2016, and September 30, 2016 and the carrying amount of unamortized intangible assets as of those same dates. September 30, 2017 December 31, 2016 September 30, 2016 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Gross Carrying Accumulated Amortizable intangible assets: Customer lists $ 6,013 953 2,369 746 2,369 668 Core deposit premiums 18,520 10,084 9,730 8,143 9,730 7,902 Other 1,303 471 1,032 224 1,032 166 Total $ 25,836 11,508 13,131 9,113 13,131 8,736 SBA servicing asset $ 1,306 415 208 Unamortizable intangible assets: Goodwill $ 144,667 75,042 75,392 Activity related to transactions during the periods presented includes the following (See Note 4 to the Consolidated Financial Statements for more information on each of these transactions): (1) In connection with the January 1, 2016 acquisition of Bankingport, Inc., the Company recorded $1,693,000 in goodwill, $591,000 in a customer list intangible, and $92,000 in other amortizable intangible assets. (2) In connection with the May 5, 2016 acquisition of SBA Complete, Inc., the Company recorded $4,333,000 in goodwill, $1,100,000 in a customer list intangible, and $940,000 in other amortizable intangible assets. (3) In connection with the branch exchange transaction with First Community Bank on July 15, 2016, the Company recorded a net increase of $1,961,000 in goodwill and $1,170,000 in core deposit premiums. (4) In connection with the Carolina Bank acquisition on March 3, 2017, the Company recorded a net increase of $65,516,000 in goodwill and $8,790,000 in core deposit premiums. (5) In connection with the September 1, 2017 acquisition of Bear Insurance Service, the Company recorded $5,330,000 in goodwill, $3,644,000 in a customer list intangible, and $271,000 in other amortizable intangible assets. In addition to the above acquisition related activity, the Company recorded $415,000 in net servicing assets associated with the guaranteed portion of SBA loans originated and sold during the third and fourth quarters of 2016. During the first nine months of 2017, the Company recorded an additional $1,003,000 in servicing assets, as well as $112,000 in amortization expense. Servicing assets are recorded at fair value and amortized over the expected lives of the related loans. Amortization expense of all intangible assets totaled $902,000 and $387,000 for the three months ended September 30, 2017 and 2016, respectively, and $2,509,000 and $834,000 for the nine months ended September 30, 2017 and 2016, respectively. The following table presents the estimated amortization expense related to amortizable intangible assets, excluding SBA servicing assets, for the last quarter of calendar year 2017 and for each of the four calendar years ending December 31, 2021 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets. ($ in thousands) Estimated Amortization October 1 to December 31, 2017 $ 902 2018 3,262 2019 2,654 2020 2,090 2021 1,628 Thereafter 3,792 Total $ 14,328 |
Pension Plans
Pension Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension Plans | Note 12 – Pension Plans The Company has historically sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, employees no longer accrue benefits for service subsequent to 2012. The Company recorded pension income totaling $202,000 and $163,000 for the three months ended September 30, 2017 and 2016, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income. For the Three Months Ended September 30, 2017 2016 2017 2016 2017 Total 2016 Total ($ in thousands) Pension Plan Pension Plan SERP SERP Both Plans Both Plans Service cost $ — — 29 27 29 27 Interest cost 361 375 57 60 418 435 Expected return on plan assets (702 ) (675 ) — — (702 ) (675 ) Amortization of transition obligation — — — — — — Amortization of net (gain)/loss 61 59 (8 ) (9 ) 53 50 Amortization of prior service cost — — — — — — Net periodic pension (income)/cost $ (280 ) (241 ) 78 78 (202 ) (163 ) The Company recorded pension income totaling $605,000 and $488,000 for the nine months ended September 30, 2017 and 2016, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income. For the Nine Months Ended September 30, 2017 2016 2017 2016 2017 Total 2016 Total ($ in thousands) Pension Plan Pension Plan SERP SERP Both Plans Both Plans Service cost – benefits earned during the period $ — — 88 80 88 80 Interest cost 1,086 1,127 170 178 1,256 1,305 Expected return on plan assets (2,107 ) (2,025 ) — — (2,107 ) (2,025 ) Amortization of transition obligation — — — — — — Amortization of net (gain)/loss 183 179 (25 ) (27 ) 158 152 Amortization of prior service cost — — — — — — Net periodic pension (income)/cost $ (838 ) (719 ) 233 231 (605 ) (488 ) The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company does not expect to contribute to the Pension Plan in 2017. The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | Note 13 – Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period for non-owner transactions and is divided into net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes revenues, expenses, gains, and losses that are excluded from earnings under current accounting standards. The components of accumulated other comprehensive income (loss) for the Company are as follows: ($ in thousands) September 30, December 31, September 30, Unrealized gain (loss) on securities available for sale $ 438 (3,085 ) 1,964 Deferred tax asset (liability) (162 ) 1,138 (767 ) Net unrealized gain (loss) on securities available for sale 276 (1,947 ) 1,197 Additional pension asset (liability) (4,854 ) (5,012 ) (4,505 ) Deferred tax asset (liability) 1,796 1,852 1,757 Net additional pension asset (liability) (3,058 ) (3,160 ) (2,748 ) Total accumulated other comprehensive income (loss) $ (2,782 ) (5,107 ) (1,551 ) The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 (all amounts are net of tax). ($ in thousands) Unrealized Gain Additional Total Beginning balance at January 1, 2017 $ (1,947 ) (3,160 ) (5,107 ) Other comprehensive income (loss) before reclassifications 2,075 — 2,075 Amounts reclassified from accumulated other comprehensive income 148 102 250 Net current-period other comprehensive income (loss) 2,223 102 2,325 Ending balance at September 30, 2017 $ 276 (3,058 ) (2,782 ) The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 (all amounts are net of tax). ($ in thousands) Unrealized Gain Additional Total Beginning balance at January 1, 2016 $ (709 ) (2,841 ) (3,550 ) Other comprehensive income before reclassifications 1,908 — 1,908 Amounts reclassified from accumulated other comprehensive income (2 ) 93 91 Net current-period other comprehensive income 1,906 93 1,999 Ending balance at September 30, 2016 $ 1,197 (2,748 ) (1,551 ) |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value | Note 14 – Fair Value Relevant accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes 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 September 30, 2017. ($ in thousands) Description of Financial Instruments Fair Value at Quoted Prices in Significant Other Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 8,992 — 8,992 — Mortgage-backed securities 155,535 — 155,535 — Corporate bonds 34,397 — 34,397 — Total available for sale securities $ 198,924 — 198,924 — Nonrecurring Impaired loans $ 14,932 — — 14,932 Foreclosed real estate 9,356 — — 9,356 The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2016. ($ in thousands) Description of Financial Instruments Fair Value at Quoted Prices in Significant Other Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 17,490 — 17,490 — Mortgage-backed securities 148,065 — 148,065 — Corporate bonds 33,600 — 33,600 — Equity securities 174 — 174 — Total available for sale securities $ 199,329 — 199,329 — Nonrecurring Impaired loans $ 12,284 — — 12,284 Foreclosed real estate 9,532 — — 9,532 The following is a description of the valuation methodologies used for instruments measured at fair value. 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, collateralized mortgage 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. Further, the Company validates the fair values for a sample of securities in the portfolio by comparing the fair values provided by the bond accounting provider to prices from other independent sources for the same or similar securities. The Company analyzes unusual or significant variances and conducts additional research with the portfolio manager, if necessary, and takes appropriate action based on its findings. 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 recurring or non-recurring basis as of September 30, 2017, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at Valuation Significant Unobservable General Range Impaired loans $ 14,932 Appraised value; PV of expected cash flows Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0-10% Foreclosed real estate 9,356 Appraised value; List or contract price Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell 0-10% For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at Valuation Significant Unobservable General Range Impaired loans $ 12,284 Appraised value; PV of expected cash flows Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0-10% Foreclosed real estate 9,532 Appraised value; List or contract price Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell 0-10% Transfers of assets or liabilities between levels within the fair value hierarchy are recognized when an event or change in circumstances occurs. There were no transfers between Level 1 and Level 2 for assets or liabilities measured on a recurring basis during the three or nine months ended September 30, 2017 or 2016. For the nine months ended September 30, 2017 and 2016, the increase in the fair value of securities available for sale was $3,523,000 and $3,128,000, respectively, which is included in other comprehensive income (net of tax expense of $1,300,000 and $1,222,000, respectively). Fair value measurement methods at September 30, 2017 and 2016 are consistent with those used in prior reporting periods. The carrying amounts and estimated fair values of financial instruments at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 ($ in thousands) Level in Fair Carrying Estimated Carrying Estimated Cash and due from banks, noninterest-bearing Level 1 $ 82,758 82,758 71,645 71,645 Due from banks, interest-bearing Level 1 326,089 326,089 234,348 234,348 Securities available for sale Level 2 198,924 198,924 199,329 199,329 Securities held to maturity Level 2 123,156 124,878 129,713 130,195 Presold mortgages in process of settlement Level 1 17,426 17,426 2,116 2,116 Total loans, net of allowance Level 3 3,405,162 3,396,635 2,686,931 2,650,820 Accrued interest receivable Level 1 11,445 11,445 9,286 9,286 Bank-owned life insurance Level 1 88,081 88,081 74,138 74,138 Deposits Level 2 3,651,241 3,647,532 2,947,353 2,944,968 Borrowings Level 2 397,525 388,477 271,394 263,255 Accrued interest payable Level 2 1,143 1,143 539 539 Fair value methods and assumptions are set forth below for the Company’s financial instruments. Cash and Amounts Due from Banks, Presold Mortgages in Process of Settlement, Accrued Interest Receivable, and Accrued Interest Payable - The carrying amounts approximate their fair value because of the short maturity of these financial instruments. Available for Sale and Held to Maturity Securities - Fair values are provided by a third-party and are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or matrix pricing. Loans - For nonimpaired loans, fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, financial and agricultural, real estate construction, real estate mortgages and installment loans to individuals. Each loan category is further segmented into fixed and variable interest rate terms. The fair value for each category is determined by discounting scheduled future cash flows using current interest rates offered on loans with similar risk characteristics. Fair values for impaired loans are primarily based on estimated proceeds expected upon liquidation of the collateral or the present value of expected cash flows. Bank-Owned Life Insurance – The carrying value of life insurance approximates fair value because this investment is carried at cash surrender value, as determined by the issuer. Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing checking accounts, savings accounts, interest-bearing checking accounts, and money market accounts, is equal to the amount payable on demand as of the valuation date. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered in the marketplace for deposits of similar remaining maturities. Borrowings - The fair value of borrowings is based on the discounted value of the contractual cash flows. The discount rate is estimated using the rates currently offered by the Company’s lenders for debt of similar maturities. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no highly liquid market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. |
Series C Preferred Stock
Series C Preferred Stock | 9 Months Ended |
Sep. 30, 2017 | |
Series C Preferred Stock [Abstract] | |
Series C Preferred Stock | Note 15 – Series C Preferred Stock On December 21, 2012, the Company issued 2,656,294 shares of its common stock and 728,706 shares of the Company’s Series C Preferred Stock to certain accredited investors, each at the price of $10.00 per share, pursuant to a private placement transaction. Net proceeds from this sale of common and preferred stock were $33.8 million and were used to strengthen the Company’s balance sheet in anticipation of a planned disposition of certain classified loans and write-down of foreclosed real estate. On December 22, 2016, the Company and the holder of the Series C Preferred Stock entered into an agreement to effectively convert the preferred stock into common stock. The Company exchanged 728,706 shares of preferred stock for the same number of shares of the Company’s common stock. As a result of the exchange, the Company has no shares of preferred stock currently outstanding. The Series C Preferred Stock qualified as Tier 1 capital and was Convertible Perpetual Preferred Stock, with dividend rights equal to the Company’s Common Stock. The Series C Preferred Stock was non-voting, except in limited circumstances. The Series C Preferred Stock paid a dividend per share equal to that of the Company’s common stock. During the three and nine months ended September 30, 2016, the Company accrued approximately $58,000 and $175,000, respectively, in preferred dividend payments for the Series C Preferred Stock. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 16 – Subsequent Event On October 1, 2017, the Company completed its acquisition of ASB Bancorp, Inc. (“ASB Bancorp”), the parent company of Asheville Savings Bank, SSB, headquartered in Asheville, North Carolina, pursuant to an Agreement and Plan of Merger and Reorganization dated May 1, 2017. Asheville Savings Bank, SSB, operated 13 banking locations in the Asheville, Marion and Brevard markets. The acquisition complements the Company’s existing three branches in the Asheville market. The total merger consideration consisted of $17.9 million in cash and 4.9 million shares of the Company’s common stock. As of the acquisition date, ASB Bancorp had assets of $793 million, gross loans of $617 million and deposits of $679 million. As of the filing of this report, the Company has not completed the fair value measurements of the assets, liabilities, and identifiable intangible assets of ASB Bancorp. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Acquisitions Tables | |
Condensed Balance Sheet of Carolina Bank and Related Fair Value Adjustments | This acquisition was accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of Carolina Bank were recorded based on estimates of fair values as of March 3, 2017. The Company may change its valuations of acquired Carolina Bank assets and liabilities for up to one year after the acquisition date. The table below is a condensed balance sheet disclosing the amount assigned to each major asset and liability category of Carolina Bank on March 3, 2017, and the related fair value adjustments recorded by the Company to reflect the acquisition. The $65.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes. ($ in thousands) As Initial Fair Measurement As Assets Cash and cash equivalents $ 81,466 (2 ) (a) — 81,464 Securities 49,629 (261 ) (b) — 49,368 Loans, gross 505,560 (5,469 ) (c) 146 (l) 497,522 (2,715 ) (d) — Allowance for loan losses (5,746 ) 5,746 (e) — — Premises and equipment 17,967 4,251 (f) (319 ) (m) 21,899 Core deposit intangible — 8,790 (g) — 8,790 Other 34,976 (4,804 ) (h) 2,225 (n) 32,397 Total 683,852 5,536 2,052 691,440 Liabilities Deposits $ 584,950 431 (i) — 585,381 Borrowings 21,855 (2,855 ) (j) (262 ) (o) 18,738 Other 12,855 225 (k) — 13,080 Total 619,660 (2,199 ) (262 ) 617,199 Net identifiable assets acquired 74,241 Total cost of acquisition Value of stock issued $ 114,478 Cash paid in the acquisition 25,279 Total cost of acquisition 139,757 Goodwill recorded related to acquisition of Carolina Bank $ 65,516 Explanation of Fair Value Adjustments (a) This adjustment was recorded to a short-term investment to its estimated fair value. (b) This fair value adjustment was recorded to adjust the securities portfolio to its estimated fair value. (c) This fair value adjustment represents the amount necessary to reduce performing loans to their fair value due to interest rate factors and credit factors. Assuming the loans continue to perform, this amount will be amortized to increase interest income over the remaining lives of the related loans. (d) This fair value adjustment was recorded to write-down purchased credit impaired loans assumed in the acquisition to their estimated fair market value. (e) This fair value adjustment reduced the allowance for loan losses to zero as required by relevant accounting guidance. (f) This adjustment represents the amount necessary to increase premises and equipment from its book value on the date of acquisition to its estimated fair market value. (g) This fair value adjustment represents the value of the core deposit base assumed in the acquisition based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as expense on an accelerated basis over seven years. (h) This fair value adjustment primarily represents the net deferred tax liability associated with the other fair value adjustments made to record the transaction. (i) This fair value adjustment was recorded because the weighted average interest rate of Carolina Bank’s time deposits exceeded the cost of similar wholesale funding at the time of the acquisition. This amount will be amortized to reduce interest expense on an accelerated basis over their remaining five year life. (j) This fair value adjustment was primarily recorded because the interest rate of Carolina Bank’s trust preferred security was less than the current interest rate on similar instruments. This amount will be amortized on approximately a straight-line basis to increase interest expense over the remaining life of the related borrowing, which is 18 years. (k) This fair value adjustment represents miscellaneous adjustments needed to record assets and liabilities at their fair value. (l) This fair value adjustment was a miscellaneous adjustment to increase the initial fair value of gross loans. (m) This fair value adjustment relates to miscellaneous adjustment to decrease the initial fair value of premises and equipment. (n) This fair value adjustment relates to changes in the estimate of deferred tax assets/liabilities associated with the acquisition and a miscellaneous adjustment to decrease the initial fair value of foreclosed real estate acquired in the transaction. (o) This fair value adjustment relates to miscellaneous adjustments to decrease the initial fair value of borrowings. |
Pro Forma Combined Financial Results of the Company and Carolina Bank | The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Carolina Bank constituted a single entity during such period. ($ in thousands, except share data) Pro Forma Combined Pro Forma Combined Net interest income $ 119,899 109,787 Noninterest income 35,236 24,818 Total revenue 155,135 134,605 Net income available to common shareholders 35,176 16,584 Earnings per common share Basic $ 1.43 0.70 Diluted 1.43 0.68 |
Equity-Based Compensation Pla26
Equity-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity-Based Compensation Plans [Abstract] | |
Schedule of Company's stock options outstanding | The following table presents information regarding the activity for the first nine months of 2017 related to the Company’s stock options outstanding: Options Outstanding Number of Weighted- Weighted- Aggregate Balance at January 1, 2017 59,948 $ 17.18 Granted — — Exercised (19,259 ) 19.44 $ 193,844 Forfeited — — Expired — — Outstanding at September 30, 2017 40,689 $ 16.11 0.9 $ 744,619 Exercisable at September 30, 2017 40,689 $ 16.11 0.9 $ 744,619 |
Schedule of outstanding restricted stock | The following table presents information regarding the activity for the first nine months of 2017 related to the Company’s outstanding restricted stock: Long-Term Restricted Stock Number of Units Weighted-Average Nonvested at January 1, 2017 91,790 $ 18.65 Granted during the period 48,322 31.05 Vested during the period (2,282 ) 18.27 Forfeited or expired during the period (8,535 ) 18.34 Nonvested at September 30, 2017 129,295 $ 23.31 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 the Three Months Ended September 30, 2017 2016 ($ in thousands except per share amounts) Income Shares Per Share Income Shares Per Share Basic EPS Net income available to common shareholders $ 13,086 24,607,516 $ 0.53 $ 4,620 20,007,518 $ 0.23 Effect of Dilutive Securities — 87,779 58 778,171 Diluted EPS per common share $ 13,086 24,695,295 $ 0.53 $ 4,678 20,785,689 $ 0.23 For the Nine Months September 30, 2017 2016 ($ in thousands except per share amounts) Income Shares Per Share Income Shares Per Share Basic EPS Net income available to common shareholders $ 31,795 23,728,262 $ 1.34 $ 18,979 19,904,226 $ 0.95 Effect of Dilutive Securities — 98,749 175 792,899 Diluted EPS per common share $ 31,795 23,827,011 $ 1.33 $ 19,154 20,697,125 $ 0.93 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Book values and approximate fair values of investment securities | The book values and approximate fair values of investment securities at September 30, 2017 and December 31, 2016 are summarized as follows: September 30, 2017 December 31, 2016 Amortized Fair Unrealized Amortized Fair Unrealized ($ in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Securities available for sale: Government-sponsored enterprise securities $ 9,000 8,992 1 (9 ) 17,497 17,490 — (7 ) Mortgage-backed securities 155,684 155,535 713 (862 ) 151,001 148,065 155 (3,091 ) Corporate bonds 33,802 34,397 660 (65 ) 33,833 33,600 91 (324 ) Equity securities — — — — 83 174 96 (5 ) Total available for sale $ 198,486 198,924 1,374 (936 ) 202,414 199,329 342 (3,427 ) Securities held to maturity: Mortgage-backed securities $ 67,708 67,529 15 (194 ) 80,585 79,283 — (1,302 ) State and local governments 55,448 57,349 1,908 (7 ) 49,128 50,912 1,815 (31 ) Total held to maturity $ 123,156 124,878 1,923 (201 ) 129,713 130,195 1,815 (1,333 ) |
Schedule of information regarding securities with unrealized losses | The following table presents information regarding securities with unrealized losses at September 30, 2017: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 6,491 9 — — 6,491 9 Mortgage-backed securities 110,437 555 24,250 501 134,687 1,056 Corporate bonds — — 935 65 935 65 State and local governments — — 813 7 813 7 Total temporarily impaired securities $ 116,928 564 25,998 573 142,926 1,137 The following table presents information regarding securities with unrealized losses at December 31, 2016: ($ in thousands) Securities in an Unrealized Securities in an Unrealized Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government-sponsored enterprise securities $ 7,990 7 — — 7,990 7 Mortgage-backed securities 196,999 3,841 19,001 552 216,000 4,393 Corporate bonds 27,027 259 935 65 27,962 324 Equity securities — — 7 5 7 5 State and local governments 801 31 — — 801 31 Total temporarily impaired securities $ 232,817 4,138 19,943 622 252,760 4,760 |
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 September 30, 2017, 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 Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Debt securities Due within one year $ — — 1,872 1,883 Due after one year but within five years 10,008 10,037 23,907 24,681 Due after five years but within ten years 27,794 28,242 23,979 25,040 Due after ten years 5,000 5,110 5,690 5,745 Mortgage-backed securities 155,684 155,535 67,708 67,529 Total securities $ 198,486 198,924 123,156 124,878 |
Loans and Asset Quality Infor29
Loans and Asset Quality Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Asset Quality Information [Abstract] | |
Summary of contractually required payments for Carolina Bank expected at acquisition date | The following table relates to Carolina Bank PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date. ($ in thousands) Carolina Bank Acquisition Contractually required payments $ 27,108 Nonaccretable difference (4,237 ) Cash flows expected to be collected at acquisition 22,871 Accretable yield (3,617 ) Fair value of PCI loans at acquisition date $ 19,254 |
Summary of contractually required payments for Carolina Bank not expected at acquisition date | The following table relates to acquired Carolina Bank purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date. ($ in thousands) Carolina Bank Acquisition Contractually required payments $ 569,980 Fair value of acquired loans at acquisition date 478,515 Contractual cash flows not expected to be collected 3,650 |
Summary of the major categories of total loans outstanding | The following is a summary of the major categories of total loans outstanding: ($ in thousands) September 30, 2017 December 31, 2016 September 30, 2016 Amount Percentage Amount Percentage Amount Percentage All loans: Commercial, financial, and agricultural $ 376,940 11% $ 261,813 9% $ 248,877 9% Real estate – construction, land development & other land loans 450,746 13% 354,667 13% 327,863 12% Real estate – mortgage – residential (1-4 family) first mortgages 796,222 23% 750,679 28% 756,880 29% Real estate – mortgage – home equity loans / lines of credit 315,322 9% 239,105 9% 239,049 9% Real estate – mortgage – commercial and other 1,431,934 42% 1,049,460 39% 1,026,328 39% Installment loans to individuals 59,028 2% 55,037 2% 52,264 2% Subtotal 3,430,192 100% 2,710,761 100% 2,651,261 100% Unamortized net deferred loan costs (fees) (437 ) (49 ) 198 Total loans $ 3,429,755 $ 2,710,712 $ 2,651,459 |
Schedule of activity in covered purchased nonimpaired loans | The following table presents information regarding covered purchased non-impaired loans since January 1, 2016. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond. All balances of covered loans were transferred to non-covered as of the termination of the loss share agreements. ($ in thousands) Carrying amount of nonimpaired covered loans at January 1, 2016 $ 101,252 Principal repayments (7,997 ) Transfers to foreclosed real estate (1,036 ) Net loan recoveries 1,784 Accretion of loan discount 1,908 Transfer to non-covered loans due to expiration of loss-share agreement, April 1, 2016 (17,530 ) Transfer to non-covered loans due to termination of loss-share agreements, September 22, 2016 (78,381 ) Carrying amount of nonimpaired covered loans at September 30, 2016 $ — |
Schedule of activity in purchased credit impaired loans | The following table presents information regarding all PCI loans since January 1, 2016. ($ in thousands) Purchased Credit Impaired Loans Accretable Carrying Balance at January 1, 2016 $ — 1,970 Change due to payments received — (1,386 ) Change due to loan charge-off — (70 ) Balance at December 31, 2016 — 514 Additions due to acquisition of Carolina Bank 3,617 19,254 Accretion (1,326 ) 1,326 Change due to payments received — (5,585 ) Transfer to foreclosed real estate — (69 ) Other — (406 ) Balance at September 30, 2017 $ 2,291 15,034 |
Summary of nonperforming assets | Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate. Nonperforming assets are summarized as follows: ASSET QUALITY DATA ($ in thousands) September 30, December 31, September 30, Nonperforming assets Nonaccrual loans $ 23,350 27,468 32,796 Restructured loans - accruing 20,330 22,138 27,273 Accruing loans > 90 days past due — — — Total nonperforming loans 43,680 49,606 60,069 Foreclosed real estate 9,356 9,532 10,103 Total nonperforming assets $ 53,036 59,138 70,172 Purchased credit impaired loans not included above (1) $ 15,034 — — (1) In the March 3, 2017 acquisition of Carolina Bank Holdings, Inc., the Company acquired $19.3 million in purchased credit impaired loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.4 million in purchased credit impaired loans at September 30, 2017 that are contractually past due 90 days or more. |
Schedule of nonaccrual loans | The following is a summary of the Company’s nonaccrual loans by major categories. ($ in thousands) September 30, December 31, Commercial, financial, and agricultural $ 996 1,842 Real estate – construction, land development & other land loans 1,565 2,945 Real estate – mortgage – residential (1-4 family) first mortgages 14,878 16,017 Real estate – mortgage – home equity loans / lines of credit 2,250 2,355 Real estate – mortgage – commercial and other 3,534 4,208 Installment loans to individuals 127 101 Total $ 23,350 27,468 |
Schedule of analysis of the payment status of loans | The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2017. ($ in thousands) Accruing Accruing Accruing Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 325 — — 996 375,364 376,685 Real estate – construction, land development & other land loans 432 — — 1,565 447,873 449,870 Real estate – mortgage – residential (1-4 family) first mortgages 4,911 472 — 14,878 772,651 792,912 Real estate – mortgage – home equity loans / lines of credit 2,455 — — 2,250 309,906 314,611 Real estate – mortgage – commercial and other 1,094 469 — 3,534 1,417,012 1,422,109 Installment loans to individuals 145 79 — 127 58,620 58,971 Purchased credit impaired 611 — 449 — 13,974 15,034 Total $ 9,973 1,020 449 23,350 3,395,400 3,430,192 Unamortized net deferred loan fees (437 ) Total loans $ 3,429,755 The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2016. ($ in thousands) Accruing Accruing Accruing Nonaccrual Accruing Total Loans Commercial, financial, and agricultural $ 92 — — 1,842 259,879 261,813 Real estate – construction, land development & other land loans 473 168 — 2,945 351,081 354,667 Real estate – mortgage – residential (1-4 family) first mortgages 4,487 443 — 16,017 729,732 750,679 Real estate – mortgage – home equity loans / lines of credit 1,751 178 — 2,355 234,821 239,105 Real estate – mortgage – commercial and other 1,482 449 — 4,208 1,042,807 1,048,946 Installment loans to individuals 186 193 — 101 54,557 55,037 Purchased credit impaired — — — — 514 514 Total $ 8,471 1,431 — 27,468 2,673,391 2,710,761 Unamortized net deferred loan fees (49 ) Total loans $ 2,710,712 |
Schedule of activity in the allowance for loan losses for non-covered and covered loans | The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2017. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Total As of and for the three months ended September 30, 2017 Beginning balance $ 3,430 2,676 7,085 2,057 6,153 1,074 1,550 24,025 Charge-offs (131 ) (43 ) (499 ) (213 ) (159 ) (162 ) — (1,207 ) Recoveries 330 809 170 120 275 71 — 1,775 Provisions (314 ) (973 ) (281 ) (49 ) (271 ) 45 1,843 — Ending balance $ 3,315 2,469 6,475 1,915 5,998 1,028 3,393 24,593 As of and for the nine months ended September 30, 2017 Beginning balance $ 3,829 2,691 7,704 2,420 5,098 1,145 894 23,781 Charge-offs (1,335 ) (312 ) (1,746 ) (791 ) (573 ) (521 ) — (5,278 ) Recoveries 848 2,280 806 250 973 210 — 5,367 Provisions (27 ) (2,190 ) (289 ) 36 500 194 2,499 723 Ending balance $ 3,315 2,469 6,475 1,915 5,998 1,028 3,393 24,593 Ending balances as of September 30, 2017: Allowance for loan losses Individually evaluated for impairment $ 144 23 929 — 487 — — 1,583 Collectively evaluated for impairment $ 3,171 2,446 5,546 1,915 5,511 1,028 3,393 23,010 Purchased credit impaired $ — — — — — — — — Loans receivable as of September 30, 2017: Ending balance – total $ 376,940 450,746 796,222 315,322 1,431,934 59,028 — 3,430,192 Unamortized net deferred loan fees (437 ) Total loans $ 3,429,755 Ending balances as of September 30, 2017: Loans Individually evaluated for impairment $ 490 3,072 14,987 52 9,443 — — 28,044 Collectively evaluated for impairment $ 376,195 446,798 777,925 314,559 1,412,666 58,971 — 3,387,114 Purchased credit impaired $ 255 876 3,310 711 9,825 57 — 15,034 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2016. There were no covered loans at December 31, 2016 and all reserves associated with previously covered loans have been transferred to the non-covered allowance. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Covered Total As of and for the year ended December 31, 2016 Beginning balance $ 4,742 3,754 7,832 2,893 5,816 1,051 696 1,799 28,583 Charge-offs (2,271 ) (1,101 ) (3,815 ) (969 ) (1,005 ) (1,008 ) (1 ) (244 ) (10,414 ) Recoveries 805 1,422 1,060 250 836 354 — 1,958 6,685 Transfer from covered status 56 65 839 293 127 — 1 (1,381 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) — — (1,050 ) Provisions 760 (1,410 ) 2,135 63 (448 ) 811 198 (2,132 ) (23 ) Ending balance $ 3,829 2,691 7,704 2,420 5,098 1,145 894 — 23,781 Ending balances as of December 31, 2016: Allowance for loan losses Individually evaluated for impairment $ 7 184 1,339 5 105 — — — 1,640 Collectively evaluated for impairment $ 3,822 2,507 6,365 2,415 4,993 1,145 894 — 22,141 Purchased credit impaired $ — — — — — — — — — Loans receivable as of December 31, 2016: Ending balance – total $ 261,813 354,667 750,679 239,105 1,049,460 55,037 — — 2,710,761 Unamortized net deferred loan fees (49 ) Total loans $ 2,710,712 Ending balances as of December 31, 2016: Loans Individually evaluated for impairment $ 644 4,001 20,807 280 6,494 — — — 32,226 Collectively evaluated for impairment $ 261,169 350,666 729,872 238,825 1,042,452 55,037 — — 2,678,021 Purchased credit impaired $ — — — — 514 — — — 514 The following table presents the activity in the allowance for loan losses for the three and nine months ended September 30, 2016. There were no covered loans at September 30, 2016 and all reserves associated with previously covered loans have been transferred to the non-covered allowance. ($ in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Unallo Covered Total As of and for the three months ended September 30, 2016 Beginning balance $ 4,282 2,899 7,860 2,285 5,571 1,480 572 1,074 26,023 Charge-offs (495 ) (161 ) (692 ) (196 ) (288 ) (223 ) — — (2,055 ) Recoveries 252 588 377 69 317 55 — — 1,658 Transfer from covered status — 3 788 281 1 — 1 (1,074 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) (1 ) — (1,051 ) Provisions 755 (612 ) (492 ) 54 (165 ) (38 ) 498 — — Ending balance $ 4,531 2,678 7,494 2,383 5,208 1,211 1,070 — 24,575 As of and for the nine months ended September 30, 2016 Beginning balance $ 4,742 3,754 7,832 2,893 5,816 1,051 696 1,799 28,583 Charge-offs (1,229 ) (638 ) (3,383 ) (930 ) (850 ) (741 ) — (244 ) (8,015 ) Recoveries 554 799 672 188 602 308 — 1,958 5,081 Transfer from covered status 56 65 839 293 127 — 1 (1,381 ) — Removed due to branch loan sale (263 ) (39 ) (347 ) (110 ) (228 ) (63 ) (1 ) — (1,051 ) Provisions 671 (1,263 ) 1,881 49 (259 ) 656 374 (2,132 ) (23 ) Ending balance $ 4,531 2,678 7,494 2,383 5,208 1,211 1,070 — 24,575 Ending balances as of September 30, 2016: Allowance for loan losses Individually evaluated for impairment $ 9 169 1,306 5 444 — — — 1,933 Collectively evaluated for impairment $ 4,522 2,509 6,188 2,372 4,764 1,211 1,070 — 22,636 Loans acquired with deteriorated credit quality $ — — — 6 — — — — 6 Loans receivable as of September 30, 2016: Ending balance – total $ 248,877 327,863 756,880 239,049 1,026,328 52,264 — — 2,651,261 Unamortized net deferred loan costs 198 Total loans $ 2,651,459 Ending balances as of September 30, 2016: Loans Individually evaluated for impairment $ 1,732 4,181 21,611 310 11,291 1 — — 39,126 Collectively evaluated for impairment $ 247,145 323,682 735,062 238,733 1,014,506 52,263 — — 2,611,391 Loans acquired with deteriorated credit quality $ — — 207 6 531 — — — 744 |
Schedule of impaired loans individually evaluated | The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of September 30, 2017. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 185 425 — 299 Real estate – mortgage – construction, land development & other land loans 2,838 4,023 — 2,871 Real estate – mortgage – residential (1-4 family) first mortgages 6,461 7,029 — 7,533 Real estate – mortgage –home equity loans / lines of credit 52 79 — 70 Real estate – mortgage –commercial and other 2,158 2,394 — 3,162 Installment loans to individuals — — — 1 Total impaired loans with no allowance $ 11,694 13,950 — 13,936 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 305 305 144 169 Real estate – mortgage – construction, land development & other land loans 234 243 23 570 Real estate – mortgage – residential (1-4 family) first mortgages 8,526 8,721 929 10,198 Real estate – mortgage –home equity loans / lines of credit — — — 83 Real estate – mortgage –commercial and other 7,285 7,392 487 5,354 Installment loans to individuals — — — — Total impaired loans with allowance $ 16,350 16,661 1,583 16,374 Interest income on impaired loans recognized during the nine months ended September 30, 2017 was insignificant. The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2016. ($ in thousands) Recorded Unpaid Related Average Impaired loans with no related allowance recorded: Commercial, financial, and agricultural $ 593 706 — 816 Real estate – mortgage – construction, land development & other land loans 3,221 4,558 — 3,641 Real estate – mortgage – residential (1-4 family) first mortgages 10,035 12,220 — 11,008 Real estate – mortgage –home equity loans / lines of credit 114 146 — 139 Real estate – mortgage –commercial and other 4,598 5,112 — 8,165 Installment loans to individuals — 2 — 1 Total impaired loans with no allowance $ 18,561 22,744 — 23,770 Impaired loans with an allowance recorded: Commercial, financial, and agricultural $ 51 51 7 202 Real estate – mortgage – construction, land development & other land loans 780 798 184 844 Real estate – mortgage – residential (1-4 family) first mortgages 10,772 11,007 1,339 13,314 Real estate – mortgage –home equity loans / lines of credit 166 166 5 324 Real estate – mortgage –commercial and other 1,896 1,929 105 4,912 Installment loans to individuals — — — 49 Total impaired loans with allowance $ 13,665 13,951 1,640 19,645 |
Schedule of recorded investment in loans by credit quality indicators | The following table presents the Company’s recorded investment in loans by credit quality indicators as of September 30, 2017. ($ in thousands) Pass Special Classified Classified Total Commercial, financial, and agricultural $ 365,505 8,974 1,210 996 376,685 Real estate – construction, land development & other land loans 435,960 6,009 6,336 1,565 449,870 Real estate – mortgage – residential (1-4 family) first mortgages 729,341 15,298 33,395 14,878 792,912 Real estate – mortgage – home equity loans / lines of credit 304,114 1,262 6,985 2,250 314,611 Real estate – mortgage – commercial and other 1,384,255 23,736 10,584 3,534 1,422,109 Installment loans to individuals 58,444 224 176 127 58,971 Purchased credit impaired 6,748 5,002 3,284 — 15,034 Total $ 3,284,367 60,505 61,970 23,350 3,430,192 Unamortized net deferred loan fees (437 ) Total loans 3,429,755 The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2016. ($ in thousands) Pass Special Classified Classified Total Commercial, financial, and agricultural $ 247,451 10,560 1,960 1,842 261,813 Real estate – construction, land development & other land loans 335,068 8,762 7,892 2,945 354,667 Real estate – mortgage – residential (1-4 family) first mortgages 678,878 16,998 38,786 16,017 750,679 Real estate – mortgage – home equity loans / lines of credit 226,159 1,436 9,155 2,355 239,105 Real estate – mortgage – commercial and other 1,005,687 26,032 13,019 4,208 1,048,946 Installment loans to individuals 54,421 256 259 101 55,037 Purchased credit impaired — 514 — — 514 Total $ 2,547,664 64,558 71,071 27,468 2,710,761 Unamortized net deferred loan fees (49 ) Total loans 2,710,712 |
Schedule of information related to loans modified in a troubled debt restructuring | The following table presents information related to loans modified in a troubled debt restructuring during the three months ended September 30, 2017 and 2016. ($ in thousands) For three months ended For the three months ended Number of Pre- Post- Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — 1 $ 1,071 $ 1,071 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 — — — — — — Installment loans to individuals — — — — — — 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 — — — — — — Installment loans to individuals — — — — — — Total TDRs arising during period — $ — $ — 1 $ 1,071 $ 1,071 Total covered TDRs arising during period included above — $ — $ — — $ — $ — The following table presents information related to loans modified in a troubled debt restructuring during the nine months ended September 30, 2017 and 2016. ($ in thousands) For nine months ended For the nine months ended Number of Pre- Post- Number of Pre- Post- TDRs – Accruing Commercial, financial, and agricultural — $ — $ — 1 $ 1,071 $ 1,071 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 3,550 3,525 — — — Installment loans to individuals — — — — — — TDRs – Nonaccrual Commercial, financial, and agricultural — — — — — — Real estate – construction, land development & other land loans 1 32 32 — — — Real estate – mortgage – residential (1-4 family) first mortgages 1 215 215 — — — Real estate – mortgage – home equity loans / lines of credit — — — — — — Real estate – mortgage – commercial and other — — — — — — Installment loans to individuals — — — — — — Total TDRs arising during period 7 $ 3,797 $ 3,772 1 $ 1,071 $ 1,071 Total covered TDRs arising during period included above — $ — $ — — $ — $ — |
Schedule of accruing restructured loans that defaulted in the period | Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three months ended September 30, 2017 and 2016 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 three months ended September 30, 2017 For the three months ended September 30, 2016 Number of Recorded Number of Recorded Investment Accruing TDRs that subsequently defaulted Real estate – mortgage – residential (1-4 family) first mortgages — $ — — $ — Total accruing TDRs that subsequently defaulted — $ — — $ — Total covered accruing TDRs that subsequently defaulted included above — $ — — $ — Accruing restructured loans that were modified in the previous 12 months and that defaulted during the nine months ended September 30, 2017 and 2016 are presented in the table below. ($ in thousands) For the nine months ended For the nine months ended Number of Recorded Number of Recorded Accruing TDRs that subsequently defaulted Commercial, financial, and agricultural — $ — 1 $ 44 Real estate – mortgage – residential (1-4 family) first mortgages 2 880 — — Real estate – mortgage – commercial and other — — 1 21 Total accruing TDRs that subsequently defaulted 2 $ 880 2 $ 65 Total covered accruing TDRs that subsequently defaulted included above — $ — 1 $ 44 |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fdic Indemnification Asset [Abstract] | |
Schedule of the FDIC indemnification asset components | The following presents a rollforward of the FDIC indemnification asset from January 1, 2016 through the date of termination. ($ in thousands) Balance at January 1, 2016 $ 8,439 Decrease related to favorable changes in loss estimates (2,246 ) Increase related to reimbursable expenses 205 Cash paid (received) 1,554 Related to accretion of loan discount (2,005 ) Other (236 ) Write off of asset balance upon termination of FDIC loss share agreements effective September 22, 2016 (5,711 ) Balance at September 30, 2016 $ — |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Other Intangible Assets [Abstract] | |
Summary of the gross carrying amount and accumulated amortization of amortizable intangible assets and the carrying amount of unamortized intangible assets | The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of September 30, 2017, December 31, 2016, and September 30, 2016 and the carrying amount of unamortized intangible assets as of those same dates. September 30, 2017 December 31, 2016 September 30, 2016 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Gross Carrying Accumulated Amortizable intangible assets: Customer lists $ 6,013 953 2,369 746 2,369 668 Core deposit premiums 18,520 10,084 9,730 8,143 9,730 7,902 Other 1,303 471 1,032 224 1,032 166 Total $ 25,836 11,508 13,131 9,113 13,131 8,736 SBA servicing asset $ 1,306 415 208 Unamortizable intangible assets: Goodwill $ 144,667 75,042 75,392 |
Schedule of the estimated amortization expense for the five succeeding fiscal years | The following table presents the estimated amortization expense related to amortizable intangible assets, excluding SBA servicing assets, for the last quarter of calendar year 2017 and for each of the four calendar years ending December 31, 2021 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets. ($ in thousands) Estimated Amortization October 1 to December 31, 2017 $ 902 2018 3,262 2019 2,654 2020 2,090 2021 1,628 Thereafter 3,792 Total $ 14,328 |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of the components of pension (income) expense | The Company recorded pension income totaling $202,000 and $163,000 for the three months ended September 30, 2017 and 2016, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income. For the Three Months Ended September 30, 2017 2016 2017 2016 2017 Total 2016 Total ($ in thousands) Pension Plan Pension Plan SERP SERP Both Plans Both Plans Service cost $ — — 29 27 29 27 Interest cost 361 375 57 60 418 435 Expected return on plan assets (702 ) (675 ) — — (702 ) (675 ) Amortization of transition obligation — — — — — — Amortization of net (gain)/loss 61 59 (8 ) (9 ) 53 50 Amortization of prior service cost — — — — — — Net periodic pension (income)/cost $ (280 ) (241 ) 78 78 (202 ) (163 ) The Company recorded pension income totaling $605,000 and $488,000 for the nine months ended September 30, 2017 and 2016, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income. For the Nine Months Ended September 30, 2017 2016 2017 2016 2017 Total 2016 Total ($ in thousands) Pension Plan Pension Plan SERP SERP Both Plans Both Plans Service cost – benefits earned during the period $ — — 88 80 88 80 Interest cost 1,086 1,127 170 178 1,256 1,305 Expected return on plan assets (2,107 ) (2,025 ) — — (2,107 ) (2,025 ) Amortization of transition obligation — — — — — — Amortization of net (gain)/loss 183 179 (25 ) (27 ) 158 152 Amortization of prior service cost — — — — — — Net periodic pension (income)/cost $ (838 ) (719 ) 233 231 (605 ) (488 ) |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Comprehensive income (loss) is defined as the change in equity during a period for non-owner transactions and is divided into net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes revenues, expenses, gains, and losses that are excluded from earnings under current accounting standards. The components of accumulated other comprehensive income (loss) for the Company are as follows: ($ in thousands) September 30, December 31, September 30, Unrealized gain (loss) on securities available for sale $ 438 (3,085 ) 1,964 Deferred tax asset (liability) (162 ) 1,138 (767 ) Net unrealized gain (loss) on securities available for sale 276 (1,947 ) 1,197 Additional pension asset (liability) (4,854 ) (5,012 ) (4,505 ) Deferred tax asset (liability) 1,796 1,852 1,757 Net additional pension asset (liability) (3,058 ) (3,160 ) (2,748 ) Total accumulated other comprehensive income (loss) $ (2,782 ) (5,107 ) (1,551 ) |
Schedule of changes in accumulated other comprehensive income (loss) | The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 (all amounts are net of tax). ($ in thousands) Unrealized Gain Additional Total Beginning balance at January 1, 2017 $ (1,947 ) (3,160 ) (5,107 ) Other comprehensive income (loss) before reclassifications 2,075 — 2,075 Amounts reclassified from accumulated other comprehensive income 148 102 250 Net current-period other comprehensive income (loss) 2,223 102 2,325 Ending balance at September 30, 2017 $ 276 (3,058 ) (2,782 ) The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 (all amounts are net of tax). ($ in thousands) Unrealized Gain Additional Total Beginning balance at January 1, 2016 $ (709 ) (2,841 ) (3,550 ) Other comprehensive income before reclassifications 1,908 — 1,908 Amounts reclassified from accumulated other comprehensive income (2 ) 93 91 Net current-period other comprehensive income 1,906 93 1,999 Ending balance at September 30, 2016 $ 1,197 (2,748 ) (1,551 ) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Financial instruments that were measured at fair value on a recurring and nonrecurring basis | The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at September 30, 2017. ($ in thousands) Description of Financial Instruments Fair Value at Quoted Prices in Significant Other Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 8,992 — 8,992 — Mortgage-backed securities 155,535 — 155,535 — Corporate bonds 34,397 — 34,397 — Total available for sale securities $ 198,924 — 198,924 — Nonrecurring Impaired loans $ 14,932 — — 14,932 Foreclosed real estate 9,356 — — 9,356 The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2016. ($ in thousands) Description of Financial Instruments Fair Value at Quoted Prices in Significant Other Significant Recurring Securities available for sale: Government-sponsored enterprise securities $ 17,490 — 17,490 — Mortgage-backed securities 148,065 — 148,065 — Corporate bonds 33,600 — 33,600 — Equity securities 174 — 174 — Total available for sale securities $ 199,329 — 199,329 — Nonrecurring Impaired loans $ 12,284 — — 12,284 Foreclosed real estate 9,532 — — 9,532 |
Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2017, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at Valuation Significant Unobservable General Range Impaired loans $ 14,932 Appraised value; PV of expected cash flows Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0-10% Foreclosed real estate 9,356 Appraised value; List or contract price Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell 0-10% For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: ($ in thousands) Description Fair Value at Valuation Significant Unobservable General Range Impaired loans $ 12,284 Appraised value; PV of expected cash flows Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0-10% Foreclosed real estate 9,532 Appraised value; List or contract price Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell 0-10% |
Schedule of the carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 ($ in thousands) Level in Fair Carrying Estimated Carrying Estimated Cash and due from banks, noninterest-bearing Level 1 $ 82,758 82,758 71,645 71,645 Due from banks, interest-bearing Level 1 326,089 326,089 234,348 234,348 Securities available for sale Level 2 198,924 198,924 199,329 199,329 Securities held to maturity Level 2 123,156 124,878 129,713 130,195 Presold mortgages in process of settlement Level 1 17,426 17,426 2,116 2,116 Total loans, net of allowance Level 3 3,405,162 3,396,635 2,686,931 2,650,820 Accrued interest receivable Level 1 11,445 11,445 9,286 9,286 Bank-owned life insurance Level 1 88,081 88,081 74,138 74,138 Deposits Level 2 3,651,241 3,647,532 2,947,353 2,944,968 Borrowings Level 2 397,525 388,477 271,394 263,255 Accrued interest payable Level 2 1,143 1,143 539 539 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ / shares in Units, $ in Thousands | Sep. 01, 2017USD ($)shares | Mar. 03, 2017USD ($)$ / sharesshares | Jul. 15, 2016USD ($) | May 05, 2016USD ($)shares | Jan. 02, 2016USD ($)shares | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Shares issued pursuant to acquisition | $ 114,893 | $ 5,509 | |||||||
Goodwill | 144,667 | 75,392 | $ 75,042 | ||||||
Premises and equipment sold | 114 | 21 | |||||||
Allowance for loan losses | 24,593 | 24,575 | 23,781 | ||||||
Total assets | 4,591,147 | 3,537,480 | 3,614,862 | ||||||
Total deposits | 3,651,241 | 2,910,840 | 2,947,353 | ||||||
Total loans | 3,429,755 | $ 2,651,459 | $ 2,710,712 | ||||||
Bankingport, Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price | $ 2,200 | ||||||||
Payments for acquisition | $ 700 | ||||||||
Shares issued pursuant to acquisition, shares | shares | 79,012 | ||||||||
Shares issued pursuant to acquisition | $ 1,500 | ||||||||
Payment for purchase of office space | 1,100 | ||||||||
Goodwill | 1,700 | ||||||||
Other amortizable intangible assets | $ 700 | ||||||||
SBA Complete, Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price | $ 8,500 | ||||||||
Payments for acquisition | $ 1,500 | ||||||||
Shares issued pursuant to acquisition, shares | shares | 199,829 | ||||||||
Shares issued pursuant to acquisition | $ 4,000 | ||||||||
Goodwill | 5,600 | ||||||||
Other amortizable intangible assets | 2,000 | ||||||||
Earn-out liability | $ 3,000 | ||||||||
Earn-out liability payment period | 3 years | ||||||||
Measurement period adjustment for earn-out liability and goodwill | $ 1,200 | ||||||||
First Community Bank branches [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 5,400 | ||||||||
Loans sold | 150,600 | ||||||||
Premises and equipment sold | 5,700 | ||||||||
Deposits sold | 134,300 | ||||||||
Deposit premium | 3,800 | ||||||||
Allowance for loan losses | 1,000 | ||||||||
Write off of goodwill | 3,500 | ||||||||
Gain loss on acquisition | 1,500 | ||||||||
Acquired assets fair value | 157,200 | ||||||||
Premises and equipment | 3,400 | ||||||||
Other liabilities | 200 | ||||||||
Discount on acquired loans | 1,500 | ||||||||
Premium on deposits | 300 | ||||||||
Core deposit intangible | 1,200 | ||||||||
Total deposits | 111,300 | ||||||||
Total loans | $ 152,200 | ||||||||
Carolina Bank [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments for acquisition | $ 25,300 | ||||||||
Shares issued pursuant to acquisition, shares | shares | 3,799,471 | ||||||||
Shares issued pursuant to acquisition | $ 114,478 | ||||||||
Goodwill | 65,516 | ||||||||
Premises and equipment | 17,967 | ||||||||
Other liabilities | 12,855 | ||||||||
Core deposit intangible | |||||||||
Payments for acquisition per share | $ / shares | $ 20 | ||||||||
Merger share conversion ratio | 1.002 | ||||||||
Contribution of cash in total consideration | 25.00% | ||||||||
Contribution of stock in total consideration | 75.00% | ||||||||
Closing stock price | $ / shares | $ 30.13 | ||||||||
Carolina Bank [Member] | Post Merger [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Merger Related Expenses | 4,400 | ||||||||
Carolina Bank [Member] | Pre Merger [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Merger Related Expenses | $ 4,600 | ||||||||
Carolina Bank [Member] | Borrowings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life of acquired intangible assets | 18 years | ||||||||
Carolina Bank [Member] | Deposit Liabilities [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life of acquired intangible assets | 5 years | ||||||||
Carolina Bank [Member] | Core Deposit Intangible [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Useful life of acquired intangible assets | 7 years | ||||||||
Bear Insurance [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price | $ 9,800 | ||||||||
Payments for acquisition | $ 7,900 | ||||||||
Shares issued pursuant to acquisition, shares | shares | 13,374 | ||||||||
Shares issued pursuant to acquisition | $ 400 | ||||||||
Goodwill | 5,300 | ||||||||
Other amortizable intangible assets | 3,900 | ||||||||
Annual commission income | 4,000 | ||||||||
Earn-out liability | $ 1,200 |
Acquisitions (Condensed Balance
Acquisitions (Condensed Balance Sheet of Carolina Bank and Related Fair Value Adjustments) (Details) - USD ($) $ in Thousands | Mar. 03, 2017 | Mar. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value Adjustments | ||||||
Value of stock issued | $ 114,893 | $ 5,509 | ||||
Goodwill recorded related to acquisition of Carolina Bank | $ 144,667 | $ 75,392 | $ 75,042 | |||
Carolina Bank [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | $ 81,466 | $ 81,466 | ||||
Securities | 49,629 | 49,629 | ||||
Loans, gross | 505,560 | 505,560 | ||||
Allowance for loan losses | (5,746) | (5,746) | ||||
Premises and equipment | 17,967 | 17,967 | ||||
Core deposit intangible | ||||||
Other | 34,976 | 34,976 | ||||
Total | 683,852 | 683,852 | ||||
Liabilities | ||||||
Deposits | 584,950 | 584,950 | ||||
Borrowings | 21,855 | 21,855 | ||||
Other | 12,855 | 12,855 | ||||
Total | 619,660 | 619,660 | ||||
Fair Value Adjustments | ||||||
Value of stock issued | 114,478 | |||||
Cash paid in the acquisition | 25,300 | |||||
Goodwill recorded related to acquisition of Carolina Bank | 65,516 | 65,516 | ||||
As Recorded by First Bancorp [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 81,464 | 81,464 | ||||
Securities | 49,368 | 49,368 | ||||
Loans, gross | 497,522 | 497,522 | ||||
Allowance for loan losses | ||||||
Premises and equipment | 21,899 | 21,899 | ||||
Core deposit intangible | 8,790 | 8,790 | ||||
Other | 32,397 | 32,397 | ||||
Total | 691,440 | 691,440 | ||||
Liabilities | ||||||
Deposits | 585,381 | 585,381 | ||||
Borrowings | 18,738 | 18,738 | ||||
Other | 13,080 | 13,080 | ||||
Total | 617,199 | 617,199 | ||||
Net identifiable assets acquired | $ 74,241 | 74,241 | ||||
Fair Value Adjustments [Member] | ||||||
Fair Value Adjustments | ||||||
Cash and cash equivalents | [1] | (2) | ||||
Securities | [2] | (261) | ||||
Loans, gross | [3] | (5,469) | ||||
Write-down of purchased credit impaired loans | [4] | (2,715) | ||||
Allowance for loan losses | [5] | 5,746 | ||||
Premises and equipment | [6] | 4,251 | ||||
Core deposit intangible | [7] | 8,790 | ||||
Other | [8] | (4,804) | ||||
Total Assets | 5,536 | |||||
Deposits | [9] | 431 | ||||
Borrowings | [10] | (2,855) | ||||
Other | [11] | 225 | ||||
Total Liabilities | (2,199) | |||||
Value of stock issued | 114,478 | |||||
Cash paid in the acquisition | 25,279 | |||||
Total cost of acquisition | 139,757 | |||||
Measurement Period Adjustments [Member] | ||||||
Fair Value Adjustments | ||||||
Cash and cash equivalents | ||||||
Securities | ||||||
Loans, gross | [12] | 146 | ||||
Write-down of purchased credit impaired loans | ||||||
Allowance for loan losses | ||||||
Premises and equipment | [13] | (319) | ||||
Core deposit intangible | ||||||
Other | [14] | 2,225 | ||||
Total Assets | 2,052 | |||||
Deposits | ||||||
Borrowings | [15] | (262) | ||||
Other | ||||||
Total Liabilities | $ (262) | |||||
[1] | This adjustment was recorded to a short-term investment to its estimated fair value. | |||||
[2] | This fair value adjustment was recorded to adjust the securities portfolio to its estimated fair value. | |||||
[3] | This fair value adjustment represents the amount necessary to reduce performing loans to their fair value due to interest rate factors and credit factors. Assuming the loans continue to perform, this amount will be amortized to increase interest income over the remaining lives of the related loans. | |||||
[4] | This fair value adjustment was recorded to write-down purchased credit impaired loans assumed in the acquisition to their estimated fair market value. | |||||
[5] | This fair value adjustment reduced the allowance for loan losses to zero as required by relevant accounting guidance. | |||||
[6] | This adjustment represents the amount necessary to increase premises and equipment from its book value on the date of acquisition to its estimated fair market value. | |||||
[7] | This fair value adjustment represents the value of the core deposit base assumed in the acquisition based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as expense on an accelerated basis over seven years. | |||||
[8] | This fair value adjustment primarily represents the net deferred tax liability associated with the other fair value adjustments made to record the transaction. | |||||
[9] | This fair value adjustment was recorded because the weighted average interest rate of Carolina Bank's time deposits exceeded the cost of similar wholesale funding at the time of the acquisition. This amount will be amortized to reduce interest expense on an accelerated basis over their remaining five year life. | |||||
[10] | This fair value adjustment was primarily recorded because the interest rate of Carolina Bank's trust preferred security was less than the current interest rate on similar instruments. This amount will be amortized on approximately a straight-line basis to increase interest expense over the remaining life of the related borrowing, which is 18 years. | |||||
[11] | This fair value adjustment represents miscellaneous adjustments needed to record assets and liabilities at their fair value. | |||||
[12] | This fair value adjustment was a miscellaneous adjustment to increase the initial fair value of gross loans. | |||||
[13] | This fair value adjustment relates to miscellaneous adjustment to decrease the initial fair value of premises and equipment. | |||||
[14] | This fair value adjustment relates to changes in the estimate of deferred tax assets/liabilities associated with the acquisition and a miscellaneous adjustment to decrease the initial fair value of foreclosed real estate acquired in the transaction. | |||||
[15] | This fair value adjustment relates to miscellaneous adjustments to decrease the initial fair value of borrowings. |
Acquisitions (Summary of Profor
Acquisitions (Summary of Proforma Combined) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Acquisitions Summary Of Proforma Combined Details | ||
Net interest income | $ 119,899 | $ 109,787 |
Noninterest income | 35,236 | 24,818 |
Total revenue | 155,135 | 134,605 |
Net income available to common shareholders | $ 35,176 | $ 16,584 |
Earnings per common share | ||
Basic | $ 1.43 | $ 0.70 |
Diluted | $ 1.43 | $ 0.68 |
Equity-Based Compensation Pla38
Equity-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 33 Months Ended | 39 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | |
Stock based compensation expense | $ 204 | $ 146 | $ 860 | $ 527 | ||||
Stock based compensation, income tax benefit | 318 | 206 | ||||||
Proceeds from stock options exercised | $ 0 | 0 | $ 287 | 375 | ||||
First Bancorp 2014 Equity Plan [Member] | ||||||||
Shares remaining available for grant | 803,946 | 803,946 | 803,946 | 803,946 | ||||
First Bancorp Plans [Member] | ||||||||
Stock options outstanding | 40,689 | 40,689 | 40,689 | 40,689 | ||||
Exercise price range - floor | $ 14.35 | |||||||
Exercise prices range - ceiling | $ 16.81 | |||||||
Director [Member] | ||||||||
Stock based compensation expense | $ 320 | |||||||
Employees Grants [Member] | ||||||||
Stock based compensation expense | 540 | |||||||
Senior Executives [Member] | Restricted Stock [Member] | ||||||||
Stock based compensation expense | $ 66 | 55 | 216 | 165 | ||||
Stock-based compensation expense expected to be recorded | 66 | $ 66 | $ 66 | $ 66 | ||||
Vesting period | 3 years | |||||||
Total compensation expense associated with senior executives grants | 758 | $ 758 | 758 | $ 758 | ||||
Grants in period (options) | 55,648 | |||||||
Percent of bonus earned under the incentive plan in cash | 50.00% | |||||||
Percent of bonus earned under the incentive plan in shares of restricted stock | 50.00% | |||||||
Employees [Member] | ||||||||
Stock based compensation expense | 138 | $ 92 | $ 324 | $ 234 | 2,800 | |||
Stock-based compensation expense expected to be recorded | $ 167 | $ 167 | $ 167 | $ 167 | ||||
Vesting period | 3 years | |||||||
Grants in period (options) | 130,059 | |||||||
Non-employee directors [Member] | ||||||||
Stock based compensation expense | $ 320 | $ 129 | ||||||
Shares granted to directors | 11,190 | 6,584 | ||||||
Shares granted per director | 1,119 | 823 | ||||||
Shares granted to directors, Per share | $ 28.59 | $ 19.56 |
Equity-Based Compensation Pla39
Equity-Based Compensation Plans (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Units | |
Nonvested, beginning | shares | 91,790 |
Granted during the period | shares | 48,322 |
Vested during the period | shares | (2,282) |
Forfeited or expired during the period | shares | (8,535) |
Nonvested, ending | shares | 129,295 |
Weighted-Average Grant-Date Fair Value | |
Nonvested, beginning | $ / shares | $ 18.65 |
Granted during the period | $ / shares | 31.05 |
Vested during the period | $ / shares | 18.27 |
Forfeited or expired during the period | $ / shares | 18.34 |
Nonvested, ending | $ / shares | $ 23.31 |
Equity-Based Compensation Pla40
Equity-Based Compensation Plans (Schedule of Company's Stock Options Outstanding) (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of shares: | |
Balance options outstanding, beginning | shares | 59,948 |
Granted | shares | |
Exercised | shares | (19,259) |
Forfeited | shares | |
Expired | shares | |
Balance options outstanding, end | shares | 40,689 |
Exercisable, end of period | shares | 40,689 |
Weighted Average Exercise Price | |
Balance, beginning | $ / shares | $ 17.18 |
Granted | $ / shares | |
Exercised | $ / shares | 19.44 |
Forfeited | $ / shares | |
Expired | $ / shares | |
Outstanding | $ / shares | 16.11 |
Exercisable | $ / shares | $ 16.11 |
Weighted- Average Contractual Term (years), outstanding | 10 months 25 days |
Weighted- Average Contractual Term (years), exercisable | 10 months 25 days |
Aggregate Intrinsic Value, exercised | $ | $ 193,844 |
Aggregate Intrinsic Value, outstanding | $ | 744,619 |
Aggregate Intrinsic Value, exercisable | $ | $ 744,619 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive securities | 0 | 16,250 | 0 | 16,250 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation Of Numerators And Denominators ) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic EPS | ||||
Net income available to common shareholders | $ 13,086 | $ 4,620 | $ 31,795 | $ 18,979 |
Shares (denominator) | 24,607,516 | 20,007,518 | 23,728,262 | 19,904,226 |
Basic EPS | $ 0.53 | $ 0.23 | $ 1.34 | $ 0.95 |
Effect of Dilutive Securities Income (numerator) | $ 58 | $ 175 | ||
Effect of Dilutive Securities Shares (denominator) | 87,779 | 778,171 | 98,749 | 792,899 |
Diluted EPS per common share | ||||
Income (numerator) | $ 13,086 | $ 4,678 | $ 31,795 | $ 19,154 |
Shares (denominator) | 24,695,295 | 20,785,689 | 23,827,011 | 20,697,125 |
Diluted EPS per common share | $ 0.53 | $ 0.23 | $ 1.33 | $ 0.93 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Securities [Abstract] | |||
Private mortgage-backed security fair value | $ 490 | ||
Investment securities, pledged as collateral for public deposits | 213,825 | $ 147,009 | |
Proceeds from sales of securities | 45,601 | $ 8 | |
Net realized gain loss of investment securities | (235) | $ 3 | |
Federal Home Loan Bank stock and Federal Reserve Bank stock, cost | 30,198 | 19,826 | |
Federal Home Loan Bank Stock, cost | 18,507 | 12,588 | |
Federal Reserve Bank, cost | $ 11,691 | $ 7,238 |
Securities (Summary of Book Val
Securities (Summary of Book Values and Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Securities available for sale: | |||
Amortized Cost | $ 198,486 | $ 202,414 | |
Fair Value | 198,924 | 199,329 | $ 199,156 |
Unrealized Gains | 1,374 | 342 | |
Unrealized (Losses) | (936) | (3,427) | |
Securities held to maturity: | |||
Amortized Cost | 123,156 | 129,713 | 135,808 |
Fair Value | 124,878 | 130,195 | $ 139,514 |
Unrealized Gains | 1,923 | 1,815 | |
Unrealized (Losses) | (201) | (1,333) | |
Government-sponsored enterprise securities [Member] | |||
Securities available for sale: | |||
Amortized Cost | 9,000 | 17,497 | |
Fair Value | 8,992 | 17,490 | |
Unrealized Gains | 1 | ||
Unrealized (Losses) | (9) | (7) | |
Mortgage-backed securities [Member] | |||
Securities available for sale: | |||
Amortized Cost | 155,684 | 151,001 | |
Fair Value | 155,535 | 148,065 | |
Unrealized Gains | 713 | 155 | |
Unrealized (Losses) | (862) | (3,091) | |
Securities held to maturity: | |||
Amortized Cost | 67,708 | 80,585 | |
Fair Value | 67,529 | 79,283 | |
Unrealized Gains | 15 | ||
Unrealized (Losses) | (194) | (1,302) | |
Corporate bonds [Member] | |||
Securities available for sale: | |||
Amortized Cost | 33,802 | 33,833 | |
Fair Value | 34,397 | 33,600 | |
Unrealized Gains | 660 | 91 | |
Unrealized (Losses) | (65) | (324) | |
Equity securities [Member] | |||
Securities available for sale: | |||
Amortized Cost | 83 | ||
Fair Value | 174 | ||
Unrealized Gains | 96 | ||
Unrealized (Losses) | (5) | ||
State and local governments [Member] | |||
Securities held to maturity: | |||
Amortized Cost | 55,448 | 49,128 | |
Fair Value | 57,349 | 50,912 | |
Unrealized Gains | 1,908 | 1,815 | |
Unrealized (Losses) | $ (7) | $ (31) |
Securities (Schedule of Informa
Securities (Schedule of Information Regarding Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Total temporarily impaired securities Fair Value | $ 116,928 | $ 232,817 |
Total temporarily impaired securities Unrealized Losses | 564 | 4,138 |
Total temporarily impaired securities Fair Value | 25,998 | 19,943 |
Total temporarily impaired securities Unrealized Losses | 573 | 622 |
Total temporarily impaired securities Fair Value | 142,926 | 252,760 |
Total temporarily impaired securities Unrealized Losses | 1,137 | 4,760 |
Government-sponsored enterprise securities [Member] | ||
AFS Fair Value | 6,491 | 7,990 |
AFS Unrealized Losses | 9 | 7 |
AFS Fair Value | ||
AFS Unrealized Losses | ||
Total AFS Fair Value | 6,491 | 7,990 |
Total AFS Unrealized Losses | 9 | 7 |
Mortgage-backed securities [Member] | ||
AFS Fair Value | 110,437 | 196,999 |
AFS Unrealized Losses | 555 | 3,841 |
AFS Fair Value | 24,250 | 19,001 |
AFS Unrealized Losses | 501 | 552 |
Total AFS Fair Value | 134,687 | 216,000 |
Total AFS Unrealized Losses | 1,056 | 4,393 |
Corporate bonds [Member] | ||
AFS Fair Value | 27,027 | |
AFS Unrealized Losses | 259 | |
AFS Fair Value | 935 | 935 |
AFS Unrealized Losses | 65 | 65 |
Total AFS Fair Value | 935 | 27,962 |
Total AFS Unrealized Losses | 65 | 324 |
Equity securities [Member] | ||
AFS Fair Value | ||
AFS Unrealized Losses | ||
AFS Fair Value | 7 | |
AFS Unrealized Losses | 5 | |
Total AFS Fair Value | 7 | |
Total AFS Unrealized Losses | 5 | |
State and local governments [Member] | ||
AFS Fair Value | 801 | |
AFS Unrealized Losses | 31 | |
AFS Fair Value | 813 | |
AFS Unrealized Losses | 7 | |
Total AFS Fair Value | 813 | 801 |
Total AFS Unrealized Losses | $ 7 | $ 31 |
Securities (Schedule of Book Va
Securities (Schedule of Book Values and Fair Values of Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Securities Available for Sale - Amortized Cost | |||
Due within one year | |||
Due after one year but within five years | 10,008 | ||
Due after five years but within ten years | 27,794 | ||
Due after ten years | 5,000 | ||
Mortgage-backed securities | 155,684 | ||
Total debt securities | 198,486 | ||
Securities Available for Sale - Fair Value | |||
Due within one year | |||
Due after one year but within five years | 10,037 | ||
Due after five years but within ten years | 28,242 | ||
Due after ten years | 5,110 | ||
Mortgage-backed securities | 155,535 | ||
Total debt securities | 198,924 | ||
Securities Held to Maturity - Amortized Cost | |||
Due within one year | 1,872 | ||
Due after one year but within five years | 23,907 | ||
Due after five years but within ten years | 23,979 | ||
Due after ten years | 5,690 | ||
Mortgage-backed securities | 67,708 | ||
Total debt securities | 123,156 | $ 129,713 | $ 135,808 |
Securities Held to Maturity - Fair Value | |||
Due within one year | 1,883 | ||
Due after one year but within five years | 24,681 | ||
Due after five years but within ten years | 25,040 | ||
Due after ten years | 5,745 | ||
Mortgage-backed securities | 67,529 | ||
Securities held to maturity | $ 124,878 | $ 130,195 | $ 139,514 |
Loans and Asset Quality Infor47
Loans and Asset Quality Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Mar. 03, 2017 | |
Accretion of loan discount | $ 1,908 | |||||
Recoveries | $ 1,775 | $ 1,658 | $ 5,367 | 5,081 | $ 6,685 | |
Recorded loans with a fair value | $ 497,500 | |||||
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | ||||||
Nonaccrual loans in process of foreclosure | 900 | 900 | $ 1,700 | |||
Purchased Impaired Loans [Member] | ||||||
Accretion of loan discount | 775 | 780 | ||||
Payments that exceeded the initial carrying amount on purchased impaired loans | 848 | 1,108 | ||||
Recoveries | 33 | |||||
Additional loan interest income | 73 | $ 295 | ||||
Recorded loans with a fair value | $ 19,300 | |||||
Purchased Impaired Loans [Member] | Carolina Bank Holdings, Inc. [Member] | 90 Days or More Past Due [Member] | ||||||
Recorded loans with a fair value | $ 400 | $ 400 |
Loans and Asset Quality Infor48
Loans and Asset Quality Information (Summary of the contractually required payments) (Details) - Carolina Bank [Member] $ in Thousands | Mar. 03, 2017USD ($) |
Purchased credit impaired [Member] | |
Contractually required payments | $ 27,108 |
Nonaccretable difference | (4,237) |
Cash flows expected to be collected at acquisition | 22,871 |
Accretable yield | (3,617) |
Fair value of PCI loans at acquisition date | 19,254 |
Purchased Non impaired [Member] | |
Contractually required payments | 569,980 |
Fair value of PCI loans at acquisition date | 478,515 |
Contractual cash flows not expected to be collected | $ 3,650 |
Loans and Asset Quality Infor49
Loans and Asset Quality Information (Summary of Major Categories of Total Loans Outstanding) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
All loans (non-covered and covered): | |||
Amount of loans | $ 3,430,192 | $ 2,710,761 | $ 2,651,261 |
Percentage of Loans | 100.00% | 100.00% | 100.00% |
Unamortized net deferred loan costs (fees) | $ (437) | $ (49) | $ 198 |
Total loans | 3,429,755 | 2,710,712 | 2,651,459 |
Commercial, financial, and agricultural [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 376,940 | $ 261,813 | $ 248,877 |
Percentage of Loans | 11.00% | 9.00% | 9.00% |
Real estate - construction, land development & other land loans [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 450,746 | $ 354,667 | $ 327,863 |
Percentage of Loans | 13.00% | 13.00% | 12.00% |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 796,222 | $ 750,679 | $ 756,880 |
Percentage of Loans | 23.00% | 28.00% | 29.00% |
Real estate - mortgage - home equity loans / lines of credit [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 315,322 | $ 239,105 | $ 239,049 |
Percentage of Loans | 9.00% | 9.00% | 9.00% |
Real estate - mortgage - commercial and other [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 1,431,934 | $ 1,049,460 | $ 1,026,328 |
Percentage of Loans | 42.00% | 39.00% | 39.00% |
Installment loans to individuals [Member] | |||
All loans (non-covered and covered): | |||
Amount of loans | $ 59,028 | $ 55,037 | $ 52,264 |
Percentage of Loans | 2.00% | 2.00% | 2.00% |
Loans and Asset Quality Infor50
Loans and Asset Quality Information (Schedule of Covered Purchased Nonimpaired Loans) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Covered purchased nonimpaired loans: | |
Carrying amount of nonimpaired covered loans, beginning balance | $ 101,252 |
Principal repayments | (7,997) |
Transfers to foreclosed real estate | (1,036) |
Net loan recoveries | 1,784 |
Accretion of loan discount | 1,908 |
Transfer to non-covered loans due to expiration of loss-share agreement, April 1, 2016 | (17,530) |
Transfer to non-covered loans due to termination of loss-share agreements, September 22, 2016 | (78,381) |
Carrying amount of nonimpaired covered loans, ending balance |
Loans and Asset Quality Infor51
Loans and Asset Quality Information (Schedule of Applied Cost Recovery Method of Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Purchased Credit Impaired Loans | ||
Balance, beginning, carrying value | $ 514 | $ 1,970 |
Change due to payments received | (5,585) | (1,386) |
Change due to loan charge-off | (70) | |
Transfer to foreclosed real estate | (69) | |
Additions due to acquisition of Carolina Bank | 19,254 | |
Accretion | 1,326 | |
Other | (406) | |
Balance, ending, carrying value | 15,034 | 514 |
Accretable Yield [Member] | ||
Purchased Credit Impaired Loans | ||
Balance, beginning, Acrretable Yield | ||
Change due to payments received | ||
Transfer to foreclosed real estate | ||
Additions due to acquisition of Carolina Bank | 3,617 | |
Accretion | (1,326) | |
Other | ||
Balance, Ending | $ 2,291 |
Loans and Asset Quality Infor52
Loans and Asset Quality Information (Summary of Nonperforming Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Nonperforming assets: | ||||
Nonaccrual loans | $ 23,350 | $ 27,468 | $ 32,796 | |
Restructured loans - accruing | 20,330 | 22,138 | 27,273 | |
Accruing loans > 90 days past due | ||||
Total nonperforming loans | 43,680 | 49,606 | 60,069 | |
Foreclosed real estate | 9,356 | 9,532 | 10,103 | |
Total nonperforming assets | 53,036 | 59,138 | 70,172 | |
Purchased credit impaired loans not included above | [1] | $ 15,034 | ||
[1] | In the March 3, 2017 acquisition of Carolina Bank Holdings, Inc., the Company acquired $19.3 million in purchased credit impaired loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.4 million in purchased credit impaired loans at September 30, 2017 that are contractually past due 90 days or more. |
Loans and Asset Quality Infor53
Loans and Asset Quality Information (Schedule of Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Company's nonaccrual loans: | |||
Nonaccrual loans | $ 23,350 | $ 27,468 | $ 32,796 |
Commercial, financial, and agricultural [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | 996 | 1,842 | |
Real estate construction, land development & other land loans [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | 1,565 | 2,945 | |
Real estate mortgage residential (1-4 family) first mortgages [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | 14,878 | 16,017 | |
Real estate mortgage home equity loans / lines of credit [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | 2,250 | 2,355 | |
Real estate mortgage commercial and other [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | 3,534 | 4,208 | |
Installment loans to individuals [Member] | |||
Company's nonaccrual loans: | |||
Nonaccrual loans | $ 127 | $ 101 |
Loans and Asset Quality Infor54
Loans and Asset Quality Information (Schedule of Analysis of Payment Status of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Analysis of the payment status of loans | |||
Nonaccrual loans | $ 23,350 | $ 27,468 | $ 32,796 |
Total loans | 3,429,755 | 2,710,712 | 2,651,459 |
Unamortized net deferred loan fees | (437) | (49) | 198 |
Total loans | 3,429,755 | 2,710,712 | $ 2,651,459 |
Commercial, financial, and agricultural [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 996 | 1,842 | |
Real estate construction, land development & other land loans [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 1,565 | 2,945 | |
Real estate mortgage residential (1-4 family) first mortgages [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 14,878 | 16,017 | |
Real estate mortgage home equity loans / lines of credit [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 2,250 | 2,355 | |
Real estate mortgage commercial and other [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 3,534 | 4,208 | |
Installment loans to individuals [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 127 | 101 | |
All Total Loans [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 23,350 | 27,468 | |
Current | 3,395,400 | 2,673,391 | |
Total loans | 3,430,192 | 2,710,761 | |
Unamortized net deferred loan fees | (437) | (49) | |
Total loans | 3,429,755 | 2,710,712 | |
All Total Loans [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 9,973 | 8,471 | |
All Total Loans [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 1,020 | 1,431 | |
All Total Loans [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 449 | ||
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 996 | 1,842 | |
Current | 375,364 | 259,879 | |
Total loans | 376,685 | 261,813 | |
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 325 | 92 | |
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Real estate construction, land development & other land loans [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 1,565 | 2,945 | |
Current | 447,873 | 351,081 | |
Total loans | 449,870 | 354,667 | |
All Total Loans [Member] | Real estate construction, land development & other land loans [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 432 | 473 | |
All Total Loans [Member] | Real estate construction, land development & other land loans [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 168 | ||
All Total Loans [Member] | Real estate construction, land development & other land loans [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Real estate mortgage residential (1-4 family) first mortgages [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 14,878 | 16,017 | |
Current | 772,651 | 729,732 | |
Total loans | 792,912 | 750,679 | |
All Total Loans [Member] | Real estate mortgage residential (1-4 family) first mortgages [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 4,911 | 4,487 | |
All Total Loans [Member] | Real estate mortgage residential (1-4 family) first mortgages [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 472 | 443 | |
All Total Loans [Member] | Real estate mortgage residential (1-4 family) first mortgages [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Real estate mortgage home equity loans / lines of credit [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 2,250 | 2,355 | |
Current | 309,906 | 234,821 | |
Total loans | 314,611 | 239,105 | |
All Total Loans [Member] | Real estate mortgage home equity loans / lines of credit [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 2,455 | 1,751 | |
All Total Loans [Member] | Real estate mortgage home equity loans / lines of credit [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 178 | ||
All Total Loans [Member] | Real estate mortgage home equity loans / lines of credit [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Real estate mortgage commercial and other [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 3,534 | 4,208 | |
Current | 1,417,012 | 1,042,807 | |
Total loans | 1,422,109 | 1,048,946 | |
All Total Loans [Member] | Real estate mortgage commercial and other [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 1,094 | 1,482 | |
All Total Loans [Member] | Real estate mortgage commercial and other [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 469 | 449 | |
All Total Loans [Member] | Real estate mortgage commercial and other [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Installment loans to individuals [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | 127 | 101 | |
Current | 58,620 | 54,557 | |
Total loans | 58,971 | 55,037 | |
All Total Loans [Member] | Installment loans to individuals [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 145 | 186 | |
All Total Loans [Member] | Installment loans to individuals [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 79 | 193 | |
All Total Loans [Member] | Installment loans to individuals [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Purchased credit impaired [Member] | |||
Analysis of the payment status of loans | |||
Nonaccrual loans | |||
Current | 13,974 | 514 | |
Total loans | 15,034 | 514 | |
All Total Loans [Member] | Purchased credit impaired [Member] | 30-59 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | 611 | ||
All Total Loans [Member] | Purchased credit impaired [Member] | 60-89 Days past due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | |||
All Total Loans [Member] | Purchased credit impaired [Member] | 90 Days or More Past Due [Member] | |||
Analysis of the payment status of loans | |||
Financing receivable, past due | $ 449 |
Loans and Asset Quality Infor55
Loans and Asset Quality Information (Schedule of Activity in Allowance for Loan Losses for Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Beginning balance | $ 24,025 | $ 26,023 | $ 23,781 | $ 28,583 | $ 28,583 |
Charge-offs | (1,207) | (2,055) | (5,278) | (8,015) | (10,414) |
Recoveries | 1,775 | 1,658 | 5,367 | 5,081 | 6,685 |
Transfers from covered status | |||||
Removed due to branch loan sale | (1,051) | (1,051) | (1,050) | ||
Provisions | 723 | (23) | (23) | ||
Ending balance | 24,593 | 24,575 | 24,593 | 24,575 | 23,781 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 1,583 | 1,933 | 1,583 | 1,933 | 1,640 |
Collectively evaluated for impairment | 23,010 | 22,636 | 23,010 | 22,636 | 22,141 |
Purchased credit impaired | 6 | 6 | |||
Loans receivable: | |||||
Ending balance - total | 3,430,192 | 2,651,261 | 3,430,192 | 2,651,261 | 2,710,761 |
Unamortized net deferred loan fees | (437) | 198 | (437) | 198 | (49) |
Total loans | 3,429,755 | 2,651,459 | 3,429,755 | 2,651,459 | 2,710,712 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 28,044 | 39,126 | 28,044 | 39,126 | 32,226 |
Collectively evaluated for impairment | 3,387,114 | 2,611,391 | 3,387,114 | 2,611,391 | 2,678,021 |
Purchased credit impaired | 15,034 | 744 | 15,034 | 744 | 514 |
Commercial, financial, and agricultural [Member] | |||||
Beginning balance | 3,430 | 4,282 | 3,829 | 4,742 | 4,742 |
Charge-offs | (131) | (495) | (1,335) | (1,229) | (2,271) |
Recoveries | 330 | 252 | 848 | 554 | 805 |
Transfers from covered status | 56 | 56 | |||
Removed due to branch loan sale | (263) | (263) | (263) | ||
Provisions | (314) | 755 | (27) | 671 | 760 |
Ending balance | 3,315 | 4,531 | 3,315 | 4,531 | 3,829 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 144 | 9 | 144 | 9 | 7 |
Collectively evaluated for impairment | 3,171 | 4,522 | 3,171 | 4,522 | 3,822 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | 376,940 | 248,877 | 376,940 | 248,877 | 261,813 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 490 | 1,732 | 490 | 1,732 | 644 |
Collectively evaluated for impairment | 376,195 | 247,145 | 376,195 | 247,145 | 261,169 |
Purchased credit impaired | 255 | 255 | |||
Real estate - construction, land development & other land loans [Member] | |||||
Beginning balance | 2,676 | 2,899 | 2,691 | 3,754 | 3,754 |
Charge-offs | (43) | (161) | (312) | (638) | (1,101) |
Recoveries | 809 | 588 | 2,280 | 799 | 1,422 |
Transfers from covered status | 3 | 65 | 65 | ||
Removed due to branch loan sale | (39) | (39) | (39) | ||
Provisions | (973) | (612) | (2,190) | (1,263) | (1,410) |
Ending balance | 2,469 | 2,678 | 2,469 | 2,678 | 2,691 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 23 | 169 | 23 | 169 | 184 |
Collectively evaluated for impairment | 2,446 | 2,509 | 2,446 | 2,509 | 2,507 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | 450,746 | 327,863 | 450,746 | 327,863 | 354,667 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 3,072 | 4,181 | 3,072 | 4,181 | 4,001 |
Collectively evaluated for impairment | 446,798 | 323,682 | 446,798 | 323,682 | 350,666 |
Purchased credit impaired | 876 | 876 | |||
Real estate mortgage residential (1-4 family) first mortgages [Member] | |||||
Beginning balance | 7,085 | 7,860 | 7,704 | 7,832 | 7,832 |
Charge-offs | (499) | (692) | (1,746) | (3,383) | (3,815) |
Recoveries | 170 | 377 | 806 | 672 | 1,060 |
Transfers from covered status | 788 | 839 | 839 | ||
Removed due to branch loan sale | (347) | (347) | (347) | ||
Provisions | (281) | (492) | (289) | 1,881 | 2,135 |
Ending balance | 6,475 | 7,494 | 6,475 | 7,494 | 7,704 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 929 | 1,306 | 929 | 1,306 | 1,339 |
Collectively evaluated for impairment | 5,546 | 6,188 | 5,546 | 6,188 | 6,365 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | 796,222 | 756,880 | 796,222 | 756,880 | 750,679 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 14,987 | 21,611 | 14,987 | 21,611 | 20,807 |
Collectively evaluated for impairment | 777,925 | 735,062 | 777,925 | 735,062 | 729,872 |
Purchased credit impaired | 3,310 | 207 | 3,310 | 207 | |
Real estate mortgage home equity loans / lines of credit [Member] | |||||
Beginning balance | 2,057 | 2,285 | 2,420 | 2,893 | 2,893 |
Charge-offs | (213) | (196) | (791) | (930) | (969) |
Recoveries | 120 | 69 | 250 | 188 | 250 |
Transfers from covered status | 281 | 293 | 293 | ||
Removed due to branch loan sale | (110) | (110) | (110) | ||
Provisions | (49) | 54 | 36 | 49 | 63 |
Ending balance | 1,915 | 2,383 | 1,915 | 2,383 | 2,420 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 5 | 5 | 5 | ||
Collectively evaluated for impairment | 1,915 | 2,372 | 1,915 | 2,372 | 2,415 |
Purchased credit impaired | 6 | 6 | |||
Loans receivable: | |||||
Ending balance - total | 315,322 | 239,049 | 315,322 | 239,049 | 239,105 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 52 | 310 | 52 | 310 | 280 |
Collectively evaluated for impairment | 314,559 | 238,733 | 314,559 | 238,733 | 238,825 |
Purchased credit impaired | 711 | 6 | 711 | 6 | |
Real estate - mortgage - commercial and other [Member] | |||||
Beginning balance | 6,153 | 5,571 | 5,098 | 5,816 | 5,816 |
Charge-offs | (159) | (288) | (573) | (850) | (1,005) |
Recoveries | 275 | 317 | 973 | 602 | 836 |
Transfers from covered status | 1 | 127 | 127 | ||
Removed due to branch loan sale | (228) | (228) | (228) | ||
Provisions | (271) | (165) | 500 | (259) | (448) |
Ending balance | 5,998 | 5,208 | 5,998 | 5,208 | 5,098 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | 487 | 444 | 487 | 444 | 105 |
Collectively evaluated for impairment | 5,511 | 4,764 | 5,511 | 4,764 | 4,993 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | 1,431,934 | 1,026,328 | 1,431,934 | 1,026,328 | 1,049,460 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 9,443 | 11,291 | 9,443 | 11,291 | 6,494 |
Collectively evaluated for impairment | 1,412,666 | 1,014,506 | 1,412,666 | 1,014,506 | 1,042,452 |
Purchased credit impaired | 9,825 | 531 | 9,825 | 531 | 514 |
Installment loans to individuals [Member] | |||||
Beginning balance | 1,074 | 1,480 | 1,145 | 1,051 | 1,051 |
Charge-offs | (162) | (223) | (521) | (741) | (1,008) |
Recoveries | 71 | 55 | 210 | 308 | 354 |
Transfers from covered status | |||||
Removed due to branch loan sale | (63) | (63) | (63) | ||
Provisions | 45 | (38) | 194 | 656 | 811 |
Ending balance | 1,028 | 1,211 | 1,028 | 1,211 | 1,145 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 1,028 | 1,211 | 1,028 | 1,211 | 1,145 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | 59,028 | 52,264 | 59,028 | 52,264 | 55,037 |
Ending balances: Loans | |||||
Individually evaluated for impairment | 1 | 1 | |||
Collectively evaluated for impairment | 58,971 | 52,263 | 58,971 | 52,263 | 55,037 |
Purchased credit impaired | 57 | 57 | |||
Unallocated [Member] | |||||
Beginning balance | 1,550 | 572 | 894 | 696 | 696 |
Charge-offs | (1) | ||||
Recoveries | |||||
Transfers from covered status | 1 | 1 | 1 | ||
Removed due to branch loan sale | (1) | (1) | |||
Provisions | 1,843 | 498 | 2,499 | 374 | 198 |
Ending balance | 3,393 | 1,070 | 3,393 | 1,070 | 894 |
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 3,393 | 1,070 | 3,393 | 1,070 | 894 |
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | |||||
Ending balances: Loans | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | |||||
Purchased credit impaired | |||||
Covered [Member] | |||||
Beginning balance | 1,074 | 1,799 | 1,799 | ||
Charge-offs | (244) | (244) | |||
Recoveries | 1,958 | 1,958 | |||
Transfers from covered status | (1,074) | (1,381) | (1,381) | ||
Removed due to branch loan sale | |||||
Provisions | (2,132) | (2,132) | |||
Ending balance | |||||
Ending balances: Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | |||||
Purchased credit impaired | |||||
Loans receivable: | |||||
Ending balance - total | |||||
Ending balances: Loans | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | |||||
Purchased credit impaired |
Loans and Asset Quality Infor56
Loans and Asset Quality Information (Schedule of Impaired Loans) (Details) - All Total Loans [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | $ 11,694 | $ 18,561 |
Impaired loans with no related allowance - Unpaid Principal Balance | 13,950 | 22,744 |
Impaired loans with no related allowance - Average Recorded Investment | 13,936 | 23,770 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 16,350 | 13,665 |
Impaired loans with allowance - Unpaid Principal Balance | 16,661 | 13,951 |
Impaired loans with related allowance - Related Allowance | 1,583 | 1,640 |
Impaired loans with related allowance - Average Recorded Investment | 16,374 | 19,645 |
Commercial, financial, and agricultural [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | 185 | 593 |
Impaired loans with no related allowance - Unpaid Principal Balance | 425 | 706 |
Impaired loans with no related allowance - Average Recorded Investment | 299 | 816 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 305 | 51 |
Impaired loans with allowance - Unpaid Principal Balance | 305 | 51 |
Impaired loans with related allowance - Related Allowance | 144 | 7 |
Impaired loans with related allowance - Average Recorded Investment | 169 | 202 |
Real estate - construction, land development & other land loans [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | 2,838 | 3,221 |
Impaired loans with no related allowance - Unpaid Principal Balance | 4,023 | 4,558 |
Impaired loans with no related allowance - Average Recorded Investment | 2,871 | 3,641 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 234 | 780 |
Impaired loans with allowance - Unpaid Principal Balance | 243 | 798 |
Impaired loans with related allowance - Related Allowance | 23 | 184 |
Impaired loans with related allowance - Average Recorded Investment | 570 | 844 |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | 6,461 | 10,035 |
Impaired loans with no related allowance - Unpaid Principal Balance | 7,029 | 12,220 |
Impaired loans with no related allowance - Average Recorded Investment | 7,533 | 11,008 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 8,526 | 10,772 |
Impaired loans with allowance - Unpaid Principal Balance | 8,721 | 11,007 |
Impaired loans with related allowance - Related Allowance | 929 | 1,339 |
Impaired loans with related allowance - Average Recorded Investment | 10,198 | 13,314 |
Real estate - mortgage - home equity loans / lines of credit [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | 52 | 114 |
Impaired loans with no related allowance - Unpaid Principal Balance | 79 | 146 |
Impaired loans with no related allowance - Average Recorded Investment | 70 | 139 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 166 | |
Impaired loans with allowance - Unpaid Principal Balance | 166 | |
Impaired loans with related allowance - Related Allowance | 5 | |
Impaired loans with related allowance - Average Recorded Investment | 83 | 324 |
Real estate - mortgage - commercial and other [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | 2,158 | 4,598 |
Impaired loans with no related allowance - Unpaid Principal Balance | 2,394 | 5,112 |
Impaired loans with no related allowance - Average Recorded Investment | 3,162 | 8,165 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | 7,285 | 1,896 |
Impaired loans with allowance - Unpaid Principal Balance | 7,392 | 1,929 |
Impaired loans with related allowance - Related Allowance | 487 | 105 |
Impaired loans with related allowance - Average Recorded Investment | 5,354 | 4,912 |
Installment loans to individuals [Member] | ||
Loans with no related allowance recorded: | ||
Impaired loans with no related allowance - Recorded Investment | ||
Impaired loans with no related allowance - Unpaid Principal Balance | 2 | |
Impaired loans with no related allowance - Average Recorded Investment | 1 | 1 |
Loans with an allowance recorded: | ||
Impaired loans with allowance - Recorded Investment | ||
Impaired loans with allowance - Unpaid Principal Balance | ||
Impaired loans with related allowance - Related Allowance | ||
Impaired loans with related allowance - Average Recorded Investment | $ 49 |
Loans and Asset Quality Infor57
Loans and Asset Quality Information (Schedule of Recorded Investment in Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Recorded investment in loans by credit quality indicators: | |||
Total | $ 3,430,192 | $ 2,710,761 | |
Unamortized net deferred loan costs | (437) | (49) | $ 198 |
Total loans | 3,429,755 | 2,710,712 | 2,651,459 |
Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 3,284,367 | 2,547,664 | |
Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 60,505 | 64,558 | |
Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 61,970 | 71,071 | |
Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 23,350 | 27,468 | |
Commercial, financial, and agricultural [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 376,685 | 261,813 | |
Commercial, financial, and agricultural [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 365,505 | 247,451 | |
Commercial, financial, and agricultural [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 8,974 | 10,560 | |
Commercial, financial, and agricultural [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 1,210 | 1,960 | |
Commercial, financial, and agricultural [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 996 | 1,842 | |
Real estate construction, land development & other land loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 449,870 | 354,667 | |
Real estate construction, land development & other land loans [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 435,960 | 335,068 | |
Real estate construction, land development & other land loans [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 6,009 | 8,762 | |
Real estate construction, land development & other land loans [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 6,336 | 7,892 | |
Real estate construction, land development & other land loans [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 1,565 | 2,945 | |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 792,912 | 750,679 | |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 729,341 | 678,878 | |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 15,298 | 16,998 | |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 33,395 | 38,786 | |
Real estate - mortgage - residential (1-4 family) first mortgages [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 14,878 | 16,017 | |
Real estate mortgage home equity loans / lines of credit [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 314,611 | 239,105 | |
Real estate mortgage home equity loans / lines of credit [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 304,114 | 226,159 | |
Real estate mortgage home equity loans / lines of credit [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 1,262 | 1,436 | |
Real estate mortgage home equity loans / lines of credit [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 6,985 | 9,155 | |
Real estate mortgage home equity loans / lines of credit [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 2,250 | 2,355 | |
Real estate mortgage commercial and other [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 1,422,109 | 1,048,946 | |
Real estate mortgage commercial and other [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 1,384,255 | 1,005,687 | |
Real estate mortgage commercial and other [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 23,736 | 26,032 | |
Real estate mortgage commercial and other [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 10,584 | 13,019 | |
Real estate mortgage commercial and other [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 3,534 | 4,208 | |
Installment loans to individuals [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 58,971 | 55,037 | |
Installment loans to individuals [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 58,444 | 54,421 | |
Installment loans to individuals [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 224 | 256 | |
Installment loans to individuals [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 176 | 259 | |
Installment loans to individuals [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 127 | 101 | |
Purchased credit impaired [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 15,034 | 514 | |
Purchased credit impaired [Member] | Pass [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 6,748 | ||
Purchased credit impaired [Member] | Special Mention Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 5,002 | 514 | |
Purchased credit impaired [Member] | Classified Accruing Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total | 3,284 | ||
Purchased credit impaired [Member] | Classified Nonaccrual Loans [Member] | |||
Recorded investment in loans by credit quality indicators: | |||
Total |
Loans and Asset Quality Infor58
Loans and Asset Quality Information (Schedule of Information of Loans Modified in Troubled Debt Restructuring) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
All Total Loans [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs | 1 | 7 | 1 | |
Pre-Modification Restructured Balances, TDRs | $ 1,071 | $ 3,797 | $ 1,071 | |
Post-Modification Restructured Balances, TDRs | $ 1,071 | $ 3,772 | $ 1,071 | |
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | 1 | 1 | ||
Pre-Modification Restructured Balances, TDRs - Accruing | $ 1,071 | $ 1,071 | ||
Post-Modification Restructured Balances, TDRs - Accruing | $ 1,071 | $ 1,071 | ||
Number of contracts, TDRs Nonaccrual | ||||
Pre-Modification Restructured Balances, TDRs Nonaccrual | ||||
Post-Modification Restructured Balances, TDRs Nonaccrual | ||||
All Total Loans [Member] | Real estate - construction, land development & other land loans [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | ||||
Pre-Modification Restructured Balances, TDRs - Accruing | ||||
Post-Modification Restructured Balances, TDRs - Accruing | ||||
Number of contracts, TDRs Nonaccrual | 1 | |||
Pre-Modification Restructured Balances, TDRs Nonaccrual | $ 32 | |||
Post-Modification Restructured Balances, TDRs Nonaccrual | $ 32 | |||
All Total Loans [Member] | Real estate - mortgage - residential (1-4 family) first mortgages [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | ||||
Pre-Modification Restructured Balances, TDRs - Accruing | ||||
Post-Modification Restructured Balances, TDRs - Accruing | ||||
Number of contracts, TDRs Nonaccrual | 1 | |||
Pre-Modification Restructured Balances, TDRs Nonaccrual | $ 215 | |||
Post-Modification Restructured Balances, TDRs Nonaccrual | $ 215 | |||
All Total Loans [Member] | Real estate - mortgage - home equity loans / lines of credit [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | ||||
Pre-Modification Restructured Balances, TDRs - Accruing | ||||
Post-Modification Restructured Balances, TDRs - Accruing | ||||
Number of contracts, TDRs Nonaccrual | ||||
Pre-Modification Restructured Balances, TDRs Nonaccrual | ||||
Post-Modification Restructured Balances, TDRs Nonaccrual | ||||
All Total Loans [Member] | Real estate - mortgage - commercial and other [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | 5 | |||
Pre-Modification Restructured Balances, TDRs - Accruing | $ 3,550 | |||
Post-Modification Restructured Balances, TDRs - Accruing | $ 3,525 | |||
Number of contracts, TDRs Nonaccrual | ||||
Pre-Modification Restructured Balances, TDRs Nonaccrual | ||||
Post-Modification Restructured Balances, TDRs Nonaccrual | ||||
All Total Loans [Member] | Installment loans to individuals [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs Accruing | ||||
Pre-Modification Restructured Balances, TDRs - Accruing | ||||
Post-Modification Restructured Balances, TDRs - Accruing | ||||
Number of contracts, TDRs Nonaccrual | ||||
Pre-Modification Restructured Balances, TDRs Nonaccrual | ||||
Post-Modification Restructured Balances, TDRs Nonaccrual | ||||
Covered [Member] | ||||
Information related to loans modified in a troubled debt restructuring: | ||||
Number of contracts, TDRs | ||||
Pre-Modification Restructured Balances, TDRs | ||||
Post-Modification Restructured Balances, TDRs |
Loans and Asset Quality Infor59
Loans and Asset Quality Information (Schedule of Accruing Restructured Loans Defaulted in Period) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
All Total Loans [Member] | ||||
Accruing TDRs that subsequently defaulted | ||||
Number of Contracts - Subsequently defaulted | 2 | 2 | ||
Recorded Investment - Subsequently defaulted | $ 880 | $ 65 | ||
All Total Loans [Member] | Commercial, financial, and agricultural [Member] | ||||
Accruing TDRs that subsequently defaulted | ||||
Number of Contracts - Subsequently defaulted | 1 | |||
Recorded Investment - Subsequently defaulted | $ 44 | |||
All Total Loans [Member] | Real estate - mortgage - residential (1-4 family) first mortgages [Member] | ||||
Accruing TDRs that subsequently defaulted | ||||
Number of Contracts - Subsequently defaulted | 2 | |||
Recorded Investment - Subsequently defaulted | $ 880 | |||
All Total Loans [Member] | Real estate - mortgage - commercial and other [Member] | ||||
Accruing TDRs that subsequently defaulted | ||||
Number of Contracts - Subsequently defaulted | 1 | |||
Recorded Investment - Subsequently defaulted | $ 21 | |||
Covered [Member] | ||||
Accruing TDRs that subsequently defaulted | ||||
Number of Contracts - Subsequently defaulted | 1 | |||
Recorded Investment - Subsequently defaulted | $ 44 |
Deferred Loan (Fees) Costs (Det
Deferred Loan (Fees) Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Deferred Loan Costs [Abstract] | |||
Net deferred loan costs | $ (437) | $ (49) | $ 198 |
FDIC Indemnification Asset (Rol
FDIC Indemnification Asset (Rollforward of the FDIC Indemnification Asset) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Rollforward of the FDIC indemnification asset | |
FDIC indemnification asset, beginning | $ 8,439 |
Decrease related to favorable changes in loss estimates | (2,246) |
Increase related to reimbursable expenses | 205 |
Cash paid (received) | 1,554 |
Related to accretion of loan discount | (2,005) |
Other | (236) |
Write off of asset balance upon termination of FDIC loss share agreements effective September 22, 2016 | (5,711) |
FDIC indemnification asset, ending |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | Sep. 01, 2017 | Mar. 03, 2017 | Jul. 15, 2016 | May 04, 2016 | Jan. 02, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Amortization expense of intangible assets | $ 902 | $ 387 | $ 2,509 | $ 834 | ||||||
Goodwill acquired | $ 5,330 | $ 4,333 | $ 1,693 | |||||||
Other amortizable intangible assets | 271 | 940 | 92 | |||||||
Net increase in goodwill | $ 65,516 | $ 1,961 | ||||||||
Net increase in core deposit premiums | $ 8,790 | $ 1,170 | ||||||||
Servicing assets | $ 415 | 1,003 | ||||||||
Additional amortization expense of servicing assets | $ 112 | |||||||||
Customer Lists [Member] | ||||||||||
Intangible assets acquired | $ 3,644 | $ 1,100 | $ 591 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets (Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Amortizable intangible assets: | |||
Customer lists | $ 6,013 | $ 2,369 | $ 2,369 |
Customer Lists Accumulated Amortization | 953 | 746 | 668 |
Core deposit premiums | 18,520 | 9,730 | 9,730 |
Core Deposit premiums Accumulated Amortization | 10,084 | 8,143 | 7,902 |
Other | 1,303 | 1,032 | 1,032 |
Other Accumulated Amortization | 471 | 224 | 166 |
Gross Carrying Amount | 25,836 | 13,131 | 13,131 |
Accumulated Amortization | 11,508 | 9,113 | 8,736 |
SBA servicing asset | 1,306 | 415 | 208 |
Unamortizable intangible assets: | |||
Goodwill | $ 144,667 | $ 75,042 | $ 75,392 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
The estimated amortization expense for five succeeding years: | |
October 1 to December 31, 2017 | $ 902 |
2,018 | 3,262 |
2,019 | 2,654 |
2,020 | 2,090 |
2,021 | 1,628 |
Thereafter | 3,792 |
Total | $ 14,328 |
Pension Plans (Narrative) (Deta
Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Retirement Benefits [Abstract] | ||||
Net periodic pension cost (income) | $ 202 | $ 163 | $ 605 | $ 488 |
Pension Plans (Details)
Pension Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Service cost - benefits earned during the period | $ 29 | $ 27 | $ 88 | $ 80 |
Interest cost | 418 | 435 | 1,256 | 1,305 |
Expected return on plan assets | (702) | (675) | (2,107) | (2,025) |
Amortization of transition obligation | ||||
Amortization of net (gain)/loss | 53 | 50 | 158 | 152 |
Amortization of prior service cost | ||||
Net periodic pension (income)/cost | (202) | (163) | (605) | (488) |
Pension Plan [Member] | ||||
Service cost - benefits earned during the period | ||||
Interest cost | 361 | 375 | 1,086 | 1,127 |
Expected return on plan assets | (702) | (675) | (2,107) | (2,025) |
Amortization of transition obligation | ||||
Amortization of net (gain)/loss | 61 | 59 | 183 | 179 |
Amortization of prior service cost | ||||
Net periodic pension (income)/cost | (280) | (241) | (838) | (719) |
SERP [Member] | ||||
Service cost - benefits earned during the period | 29 | 27 | 88 | 80 |
Interest cost | 57 | 60 | 170 | 178 |
Expected return on plan assets | ||||
Amortization of transition obligation | ||||
Amortization of net (gain)/loss | (8) | (9) | (25) | (27) |
Amortization of prior service cost | ||||
Net periodic pension (income)/cost | $ 78 | $ 78 | $ 233 | $ 231 |
Comprehensive Income (Loss) (Sc
Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
The components of accumulated other comprehensive income (loss): | ||||
Total accumulated other comprehensive income (loss) | $ (2,782) | $ (5,107) | $ (1,551) | $ (3,550) |
Unrealized gain (loss) on securities available for sale [Member] | ||||
The components of accumulated other comprehensive income (loss): | ||||
Total accumulated other comprehensive income (loss) | 438 | (3,085) | 1,964 | |
Deferred tax asset (liability) | (162) | 1,138 | (767) | |
Total accumulated other comprehensive income (loss) | 276 | (1,947) | 1,197 | (709) |
Additional pension asset (liability) [Member] | ||||
The components of accumulated other comprehensive income (loss): | ||||
Total accumulated other comprehensive income (loss) | (4,854) | (5,012) | (4,505) | |
Deferred tax asset (liability) | 1,796 | 1,852 | 1,757 | |
Total accumulated other comprehensive income (loss) | $ (3,058) | $ (3,160) | $ (2,748) | $ (2,841) |
Comprehensive Income (Loss) (68
Comprehensive Income (Loss) (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated other comprehensive income (loss), beginning balance | $ (5,107) | $ (3,550) |
Other comprehensive income (loss) before reclassifications | 2,075 | 1,908 |
Amounts reclassified from accumulated other comprehensive income | 250 | 91 |
Net current-period other comprehensive income (loss) | 2,325 | 1,999 |
Accumulated other comprehensive income (loss), ending balance | (2,782) | (1,551) |
Unrealized gain (loss) on securities available for sale [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (1,947) | (709) |
Other comprehensive income (loss) before reclassifications | 2,075 | 1,908 |
Amounts reclassified from accumulated other comprehensive income | 148 | (2) |
Net current-period other comprehensive income (loss) | 2,223 | 1,906 |
Accumulated other comprehensive income (loss), ending balance | 276 | 1,197 |
Additional pension asset (liability) [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (3,160) | (2,841) |
Other comprehensive income (loss) before reclassifications | ||
Amounts reclassified from accumulated other comprehensive income | 102 | 93 |
Net current-period other comprehensive income (loss) | 102 | 93 |
Accumulated other comprehensive income (loss), ending balance | $ (3,058) | $ (2,748) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value [Abstract] | ||
Increase in fair value of securities available for sale | $ 3,523 | $ 3,128 |
Tax expense of increase in fair value of securities available for sale | $ 1,300 | $ 1,222 |
Fair Value (Financial instrumen
Fair Value (Financial instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Securities available for sale: | |||
Total available for sale securities | $ 198,924 | $ 199,329 | $ 199,156 |
Impaired loans and foreclosed real estate: | |||
Foreclosed real estate | 9,356 | 9,532 | $ 10,103 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Securities available for sale: | |||
Total available for sale securities | 198,924 | 199,329 | |
Recurring [Member] | Quoted Prices in Markets for Identical Assets (Level 1) [Member] | |||
Securities available for sale: | |||
Government-sponsored enterprise securities | |||
Mortgage-backed securities | |||
Corporate bonds | |||
Equity securities | |||
Total available for sale securities | |||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Securities available for sale: | |||
Government-sponsored enterprise securities | 8,992 | 17,490 | |
Mortgage-backed securities | 155,535 | 148,065 | |
Corporate bonds | 34,397 | 33,600 | |
Equity securities | 174 | ||
Total available for sale securities | 198,924 | 199,329 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Securities available for sale: | |||
Government-sponsored enterprise securities | |||
Mortgage-backed securities | |||
Corporate bonds | |||
Equity securities | |||
Total available for sale securities | |||
Recurring [Member] | Fair Value [Member] | |||
Securities available for sale: | |||
Government-sponsored enterprise securities | 8,992 | 17,490 | |
Mortgage-backed securities | 155,535 | 148,065 | |
Corporate bonds | 34,397 | 33,600 | |
Equity securities | 174 | ||
Total available for sale securities | 198,924 | 199,329 | |
Nonrecurring [Member] | Quoted Prices in Markets for Identical Assets (Level 1) [Member] | |||
Impaired loans and foreclosed real estate: | |||
Impaired loans | |||
Foreclosed real estate | |||
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Impaired loans and foreclosed real estate: | |||
Impaired loans | |||
Foreclosed real estate | |||
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Impaired loans and foreclosed real estate: | |||
Impaired loans | 14,932 | 12,284 | |
Foreclosed real estate | 9,356 | 9,532 | |
Nonrecurring [Member] | Fair Value [Member] | |||
Impaired loans and foreclosed real estate: | |||
Impaired loans | 14,932 | 12,284 | |
Foreclosed real estate | $ 9,356 | $ 9,532 |
Fair Value (Level 3 assets and
Fair Value (Level 3 assets and liabilities measured at fair value) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Impaired loans | $ 14,932 | $ 12,284 |
Foreclosed real estate | $ 9,356 | $ 9,532 |
Impaired Loans [Member] | ||
Valuation technique | Appraised value; PV of expected cash flows | Appraised value; PV of expected cash flows |
Significant unobservable inputs | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |
General range of significant input values, minimum | 0.00% | 0.00% |
General range of significant input values, maximum | 10.00% | 10.00% |
Foreclosed Real Estate [Member] | ||
Valuation technique | Appraised value; List or contract price | Appraised value; List or contract price |
Significant unobservable inputs | Discounts to reflect current market conditions and estimated costs to sell | Discounts to reflect current market conditions and estimated costs to sell |
General range of significant input values, minimum | 0.00% | 0.00% |
General range of significant input values, maximum | 10.00% | 10.00% |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Carrying amounts and estimated fair values of financial instruments: | |||
Cash and due from banks, noninterest-bearing | $ 82,758 | $ 71,645 | $ 64,145 |
Due from banks, interest-bearing | 326,089 | 234,348 | 217,188 |
Securities available for sale | 198,924 | 199,329 | 199,156 |
Securities held to maturity | 123,156 | 129,713 | 135,808 |
Total loans, net of allowance | 3,405,162 | 2,686,931 | 2,626,884 |
Accrued interest receivable | 11,445 | 9,286 | 8,785 |
Bank-owned life insurance | 88,081 | 74,138 | 73,613 |
Accrued interest payable | 1,143 | 539 | $ 523 |
Carrying Amount [Member] | Quoted Prices in Markets for Identical Assets (Level 1) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Cash and due from banks, noninterest-bearing | 82,758 | 71,645 | |
Due from banks, interest-bearing | 326,089 | 234,348 | |
Presold mortgages in process of settlement | 17,426 | 2,116 | |
Accrued interest receivable | 11,445 | 9,286 | |
Bank-owned life insurance | 88,081 | 74,138 | |
Carrying Amount [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Securities available for sale | 198,924 | 199,329 | |
Securities held to maturity | 123,156 | 129,713 | |
Deposits | 3,651,241 | 2,947,353 | |
Borrowings | 397,525 | 271,394 | |
Accrued interest payable | 1,143 | 539 | |
Carrying Amount [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Total loans, net of allowance | 3,405,162 | 2,686,931 | |
Fair Value [Member] | Quoted Prices in Markets for Identical Assets (Level 1) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Cash and due from banks, noninterest-bearing | 82,758 | 71,645 | |
Due from banks, interest-bearing | 326,089 | 234,348 | |
Presold mortgages in process of settlement | 17,426 | 2,116 | |
Accrued interest receivable | 11,445 | 9,286 | |
Bank-owned life insurance | 88,081 | 74,138 | |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Securities available for sale | 198,924 | 199,329 | |
Securities held to maturity | 124,878 | 130,195 | |
Deposits | 3,647,532 | 2,944,968 | |
Borrowings | 388,477 | 263,255 | |
Accrued interest payable | 1,143 | 539 | |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Carrying amounts and estimated fair values of financial instruments: | |||
Total loans, net of allowance | $ 3,396,635 | $ 2,650,820 |
Series C Preferred Stock (Narra
Series C Preferred Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 21, 2012 | Dec. 22, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Preferred stock dividends | $ 58 | $ 175 | ||||
Series C Preferred Stock [Member] | ||||||
Stock issued, shares | 728,706 | |||||
Stock sold price per share | $ 10 | |||||
Preferred stock dividends | $ 58 | $ 175 | ||||
Number of shares exchanged | 728,706 | |||||
Common Stock [Member] | ||||||
Stock issued, shares | 2,656,294 | |||||
Common Stock [Member] | Series C Preferred Stock [Member] | ||||||
Net proceeds from the sale of preferred and common stock | $ 33,800 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Oct. 01, 2017USD ($)shares | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Total assets | $ 4,591,147 | $ 3,614,862 | $ 3,537,480 | |
Subsequent Event [Member] | ASB Bancorp [Member] | ||||
Total purchase price | $ 17,900 | |||
Banking location | 13 | |||
Shares issued in acquisition | shares | 4,900,000 | |||
Total assets | $ 793,000 | |||
Gross loans | 617,000 | |||
Deposits | $ 679,000 |