10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

Commission File Number 0-15572

FIRST BANCORP

(Exact Name of Registrant as Specified in its Charter)

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

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

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

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

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

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

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

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

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

The number of shares of the registrant's Common Stock outstanding on July 31, 2023 was 41,083,178.

INDEX

FIRST BANCORP AND SUBSIDIARIES

	Page
Part I.  Financial Information
Item 1 - Financial Statements (unaudited)
Consolidated Balance Sheets - June 30, 2023 and December 31, 2022	4
Consolidated Statements of Income - For the Three and Six Months Ended June 30, 2023 and 2022	5
Consolidated Statements of Comprehensive Income - For the Three and Six Months Ended June 30, 2023 and 2022	6
Consolidated Statements of Shareholders’ Equity - For the Three and Six Months Ended June 30, 2023 and 2022	7
Consolidated Statements of Cash Flows - For the Six Months Ended June 30, 2023 and 2022	9
Notes to Consolidated Financial Statements	11
Item 2 – Management’s Discussion and Analysis of Consolidated Results of Operations and Financial Condition	43
Item 3 – Quantitative and Qualitative Disclosures About Market Risk	60
Item 4 – Controls and Procedures	62
Part II.  Other Information
Item 1 – Legal Proceedings	63
Item 1A – Risk Factors	63
Item 6 – Exhibits	64
Signatures	65

Page 2

FORWARD-LOOKING STATEMENTS

Part I of this report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Further, forward-looking statements are intended to speak only as of the date made. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” or other statements concerning our opinions or judgment about future events. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of our customers, our level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, geopolitical influences and general economic conditions. For additional information about factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of our 2022 Annual Report on Form 10-K and Item 1A of Part II of this report.

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Part I. Financial Information

Item 1 - Financial Statements

First Bancorp and Subsidiaries

Consolidated Balance Sheets

($ in thousands)	June 30, 2023 (unaudited)		December 31, 2022
ASSETS
Cash and due from banks, noninterest-bearing	$	101,215	101,133
Due from banks, interest-bearing	259,460		169,185
Total cash and cash equivalents	360,675		270,318
Securities available for sale	2,219,786		2,314,493
Securities held to maturity (fair values of $441,881 and $432,528)	537,821		541,700
Presold mortgages in process of settlement at fair value	4,953		1,282
Loans	7,897,629		6,665,145
Allowance for credit losses on loans	(109,230)		(90,967)
Net loans	7,788,399		6,574,178
Premises and equipment	152,443		134,187
Operating right-of-use lease assets	18,375		18,733
Accrued interest receivable	33,446		29,710
Goodwill	478,750		364,263
Other intangible assets	37,097		12,675
Bank-owned life insurance	181,659		164,592
Other assets	219,594		198,918
Total assets	$	12,032,998	10,625,049
LIABILITIES
Deposits:      Noninterest-bearing deposits	$	3,639,930	3,566,003
Interest-bearing deposits	6,528,639		5,661,526
Total deposits	10,168,569		9,227,529
Borrowings	481,658		287,507
Accrued interest payable	4,845		2,738
Operating lease liabilities	19,109		19,391
Other liabilities	61,175		56,288
Total liabilities	10,735,356		9,593,453
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Preferred stock, no par value per share.  Authorized: 5,000,000 shares
Issued & outstanding:  none as of June 30, 2023 and December 31, 2022	—		—
Common stock, no par value per share.  Authorized: 60,000,000 shares
Issued & outstanding:  41,082,678 shares and 35,704,154 shares as of June 30, 2023 and December 31, 2022, respectively	960,851		725,153
Retained earnings	674,933		648,418
Stock in rabbi trust assumed in acquisition	(1,365)		(1,585)
Rabbi trust obligation	1,365		1,585
Accumulated other comprehensive loss	(338,142)		(341,975)
Total shareholders’ equity	1,297,642		1,031,596
Total liabilities and shareholders’ equity	$	12,032,998	10,625,049

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Income

	Three Months Ended June 30,			Six Months Ended June 30,
($ in thousands, except share data - unaudited)	2023		2022	2023	2022
INTEREST INCOME
Interest and fees on loans	$	102,963	65,077	202,343	129,279
Interest on investment securities:
Taxable interest income	13,063		13,385	26,479	26,595
Tax-exempt interest income	1,120		1,104	2,250	2,152
Other, principally overnight investments	4,015		881	7,263	1,530
Total interest income	121,161		80,447	238,335	159,556
INTEREST EXPENSE
Interest on deposits	27,328		1,585	46,246	3,356
Interest on borrowings	6,848		592	12,618	1,052
Total interest expense	34,176		2,177	58,864	4,408
Net interest income	86,985		78,270	179,471	155,148
Provision for credit losses	3,700		—	15,151	3,500
Reversal of provision for unfunded commitments	(1,339)		—	(288)	(1,500)
Total provision for credit losses	2,361		—	14,863	2,000
Net interest income after provision for credit losses	84,624		78,270	164,608	153,148
NONINTEREST INCOME
Service charges on deposit accounts	4,114		3,700	8,008	7,241
Other service charges and fees	5,650		7,882	11,570	14,887
Fees from presold mortgage loans	557		454	963	1,575
Commissions from sales of financial products	1,413		1,151	2,719	2,096
SBA consulting fees	409		704	930	1,484
SBA loan sale gains	696		841	951	4,102
Bank-owned life insurance income	1,066		942	2,112	1,918
Other gains, net	330		1,590	518	3,212
Total noninterest income	14,235		17,264	27,771	36,515
NONINTEREST EXPENSE
Salaries expense	28,676		23,799	57,997	47,253
Employee benefits expense	6,165		6,310	12,558	11,888
Total personnel expense	34,841		30,109	70,555	59,141
Occupancy expense	3,547		3,122	7,235	6,506
Equipment related expenses	1,425		1,514	2,804	2,818
Merger and acquisition expenses	1,334		737	13,516	4,221
Intangibles amortization expense	2,049		953	4,194	1,970
Other operating expenses	18,397		12,963	37,464	26,207
Total noninterest expenses	61,593		49,398	135,768	100,863
Income before income taxes	37,266		46,136	56,611	88,800
Income tax expense	7,863		9,551	12,047	18,246
Net income	$	29,403	36,585	44,564	70,554
Earnings per common share:
Basic	$	0.72	1.03	1.09	1.98
Diluted	0.71		1.03	1.08	1.98
Dividends declared per common share	$	0.22	0.22	0.44	0.44
Weighted average common shares outstanding:
Basic	40,721,840		35,474,664	40,665,172	35,476,902
Diluted	41,129,100		35,642,471	41,123,869	35,641,728

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Comprehensive Income

	Three Months Ended June 30,			Six Months Ended June 30,
($ in thousands - unaudited)	2023		2022	2023	2022
Net income	$	29,403	36,585	44,564	70,554
Other comprehensive income (loss):
Unrealized (losses) gains on securities available for sale:
Unrealized (losses) gains arising during the period	(31,415)		(109,623)	3,918	(291,418)
Tax benefit (expense)	7,273		25,192	(152)	66,968
Postretirement Plans:
Amortization of unrecognized net actuarial loss	44		44	88	88
Tax benefit	(10)		(10)	(21)	(20)
Other comprehensive (loss) income	(24,108)		(84,397)	3,833	(224,382)
Comprehensive income (loss)	$	5,295	(47,812)	48,397	(153,828)

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Shareholders’ Equity

($ in thousands, except share data - unaudited)	Common Stock			Retained Earnings	Stock in Rabbi Trust Assumed in Acquisition	Rabbi Trust Obligation	Accumulated Other Comprehensive Loss	Total Shareholders’ Equity
	Shares	Amount
Three Months Ended June 30, 2022
Balances, April 1, 2022	35,640	$	723,441	559,004	(1,814)	1,814	(164,955)	1,117,490
Net income				36,585				36,585
Cash dividends declared ($0.22 per common share)				(7,850)				(7,850)
Change in Rabbi Trust Obligation					241	(241)		—
Stock withheld for payment of taxes	(14)	(486)						(486)
Stock-based compensation	58	1,001						1,001
Other comprehensive loss							(84,397)	(84,397)
Balances, June 30, 2022	35,684	$	723,956	587,739	(1,573)	1,573	(249,352)	1,062,343
Three Months Ended June 30, 2023
Balances, April 1, 2023	40,987	$	959,422	654,573	(1,608)	1,608	(314,034)	1,299,961
Net income				29,403				29,403
Cash dividends declared ($0.22 per common share)				(9,043)				(9,043)
Change in Rabbi Trust Obligation					243	(243)		—
Stock options exercised	23	488						488
Stock withheld for payment of taxes	(6)	(186)						(186)
Stock-based compensation	79	1,127						1,127
Other comprehensive income							(24,108)	(24,108)
Balances, June 30, 2023	41,083	$	960,851	674,933	(1,365)	1,365	(338,142)	1,297,642

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Shareholders’ Equity

($ in thousands, except share data - unaudited)	Common Stock			Retained Earnings	Stock in Rabbi Trust Assumed in Acquisition	Rabbi Trust Obligation	Accumulated Other Comprehensive Loss	Total Shareholders’ Equity
	Shares	Amount
Six Months Ended June 30, 2022
Balances, January 1, 2022	35,629	$	722,671	532,874	(1,803)	1,803	(24,970)	1,230,575
Net income				70,554				70,554
Cash dividends declared ($0.44 per common share)				(15,689)				(15,689)
Change in Rabbi Trust Obligation					230	(230)		—
Stock withheld for payment of taxes	(17)	(603)						(603)
Stock-based compensation	72	1,888						1,888
Other comprehensive loss							(224,382)	(224,382)
Balances, June 30, 2022	35,684	$	723,956	587,739	(1,573)	1,573	(249,352)	1,062,343
Six Months Ended June 30, 2023
Balances, January 1, 2023	35,704	725,153		648,418	(1,585)	1,585	(341,975)	1,031,596
Net income				44,564				44,564
Cash dividends declared ($0.44 per common share)				(18,049)				(18,049)
Change in Rabbi Trust Obligation					220	(220)		—
Equity issued pursuant to acquisition	5,033	229,489						229,489
Stock options exercised	193	3,703						3,703
Stock withheld for payment of taxes	(6)	(186)						(186)
Stock-based compensation	159	2,692						2,692
Other comprehensive income (loss)							3,833	3,833
Balances, June 30, 2023	41,083	$	960,851	674,933	(1,365)	1,365	(338,142)	1,297,642

See accompanying notes to unaudited consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Cash Flows

	Six Months Ended June 30,
($ in thousands-unaudited)	2023		2022
Cash Flows From Operating Activities
Net income	$	44,564	70,554
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses and unfunded commitments, net	14,863		2,000
Net security premium amortization	4,731		6,579
(Decrease) increase in net deferred tax asset	(2,324)		26,341
Loan discount accretion	(7,151)		(3,216)
Other purchase accounting amortization and accretion, net	2,317		(276)
Foreclosed property net gains	(35)		(372)
Other gains, net	(561)		(3,212)
Bank-owned life insurance income	(2,112)		(1,918)
Decrease in net deferred loan fees	(590)		(901)
Depreciation of premises and equipment	3,778		3,436
Amortization of operating lease right-of-use assets	1,090		1,012
Repayments of lease obligations	(1,014)		(912)
Stock-based compensation expense	2,245		1,548
Amortization of intangible assets	4,194		1,970
Amortization and impairment of SBA servicing assets	494		1,531
Fees/gains from sale of presold mortgages and SBA loans	(1,914)		(5,677)
Origination of presold mortgage loans in process of settlement	(44,954)		(78,141)
Proceeds from sales of presold mortgage loans in process of settlement	42,316		94,052
Origination of SBA loans for sale	(19,163)		(52,701)
Proceeds from sales of SBA and other loans	15,053		101,801
Increase (decrease) in accrued interest receivable	2,001		(604)
Decrease (increase) in other assets	4,048		(24,857)
Increase in accrued interest payable	1,725		41
Increase (decrease) in other liabilities	1,553		(7,561)
Net cash provided by operating activities	65,154		130,517
Cash Flows From Investing Activities
Purchases of securities available for sale	—		(354,765)
Purchases of securities held to maturity	—		(39,004)
Proceeds from maturities/issuer calls of securities available for sale	96,686		156,874
Proceeds from maturities/issuer calls of securities held to maturity	1,587		4,102
Proceeds from sales of securities available for sale	111,862		—
Purchases of Federal Reserve and FHLB stock, net	(15,285)		(7,838)
Proceeds from bank owned life insurance death benefits	137		5,827
Net increase in loans	(226,193)		(143,223)
Proceeds from sales of foreclosed properties	192		2,904
Purchases of premises and equipment	(1,854)		(2,702)
Proceeds from sales of premises and equipment	45		359
Net cash received in acquisition activities	22,610		—
Net cash used by investing activities	(10,213)		(377,466)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(106,165)		235,521
Net increase in short-term borrowings	154,973		—
Payments on long-term borrowings	(42)		(67)
Cash dividends paid – common stock	(16,867)		(14,961)
Proceeds from stock option exercises	3,703		—
Payment of taxes related to stock withheld	(186)		(603)
Net cash provided by financing activities	35,416		219,890
Increase in cash and cash equivalents	90,357		(27,059)
Cash and cash equivalents, beginning of period	270,318		461,162
Cash and cash equivalents, end of period	$	360,675	434,103

(Continued)

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First Bancorp and Subsidiaries

Consolidated Statements of Cash Flows

	Six Months Ended June 30,
($ in thousands-unaudited)	2023		2022
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest	$	54,694	4,644
Cash paid during the period for income taxes	12,917		15,719
Non-cash: Unrealized gain (loss) on securities available for sale, net of taxes	3,765		(224,450)
Non-cash: Foreclosed loans transferred to other real estate	576		119
Non-cash: Accrued dividends at end of period	9,038		7,853
Acquisition of GrandSouth Bancorporation	See Note 2		—

See accompanying notes to consolidated financial statements.

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First Bancorp and Subsidiaries

Notes to Consolidated Financial Statements

(unaudited)

Note 1 - Organization and Basis of Presentation

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

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2023, the consolidated results of operations for the three and six months ended June 30, 2023 and 2022, and the consolidated cash flows for the six months ended June 30, 2023 and 2022. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year.

Reference is made to Note 1 of the 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for a discussion of accounting policies and other relevant information with respect to the financial statements.

Certain reclassifications have been made to the June 30, 2022 and December 31, 2022 consolidated financial statements to be comparable to June 30, 2023. These reclassifications had no effect on net income.

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

Accounting Standards Adopted in 2023

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments contained in this Accounting Standards Update ("ASU") eliminate the accounting guidance for troubled debt restructurings ("TDR") by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables. The Company adopted ASU 2022-02 effective January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. The impact of the adoption resulted in an immaterial change to the allowance for credit losses ("ACL"), thus no adjustment to retained earnings was recorded. Disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty as presented in Note 4. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, the current year vintage disclosure included in Note 4 has been updated to reflect gross charge-offs by year of origination for the six months ended June 30, 2023.

ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and, therefore, is not considered in measuring fair value. The Company adopted ASU 2022-03 January 1, 2023 with no material impact on its financial statements.

ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The objective of the guidance in Topic 848 was to provide relief during the temporary transition period and the FASB included a sunset provision based on expectations of when the London Interbank Offered Rate ("LIBOR") would cease being published. The United Kingdom Financial Conduct

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Authority has announced that the intended LIBOR cessation date has been extended from December 31, 2021 to June 30, 2023. As such, ASU 2022-06 defers the sunset date previously set to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848; moreover, it applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was adopted upon issuance. The Company will continue to elect various optional expedients for contract modifications affected by rate reference reform through the effective date of this guidance with no material effect on its financial statements.

Accounting Standards Pending Adoption

ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 is not expected to have a significant impact on the Company's consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Note 2 – Acquisitions

On January 1, 2023, the Company completed its acquisition of GrandSouth Bancorporation ("GrandSouth"), in an all-stock transaction pursuant to the Agreement and Plan of Merger and Reorganization (the "Merger Agreement"), dated June 21, 2022, between the Company and GrandSouth. At the closing of the transaction, GrandSouth merged into the Company. Following the merger of the Company and GrandSouth, GrandSouth Bank, a wholly-owned subsidiary of GrandSouth, merged into the Bank with the Bank being the surviving entity. The results of GrandSouth are included beginning on the January 1, 2023 acquisition date.

Pursuant to the Merger Agreement, each share of common and preferred stock of GrandSouth issued and outstanding immediately prior to the effective time of the acquisition was converted into 0.91 shares of the Company's common stock. As a result, the Company issued 5,032,834 shares of the Company common stock effective January 1, 2023. In addition, GrandSouth common stock options outstanding at the merger effective time were converted to options to acquire 0.91 shares of the Company's common stock resulting in 542,345 options with an average exercise price of approximately $20.14. The total consideration transferred at the close of the transaction was $229.5 million which was determined based on the number of shares issued and the closing market price of the Company's stock immediately prior to the merger effective time of $42.84. In addition to the stock issued, the fair value of the converted stock options calculated in accordance with FASB Accounting Standards Codification ("ASC") 805-30-55 was included in the total consideration of the transaction.

As a result of the merger, eight branches in South Carolina were added to the Company's branch network. The acquisition accomplished the Company's strategic initiative to expand its presence in South Carolina, specifically in the the high-growth markets of the state including Greenville, Charleston and Columbia. Significant synergies are anticipated to be gained from the acquisition, with asset growth and revenue enhancement opportunities from the new markets and expanded customer base. Accordingly, the Company recognized goodwill in the transaction related primarily to the reasons noted, as well as the positive earnings of GrandSouth.

This transaction was accounted for using the acquisition method of accounting for business combinations, and accordingly, the assets acquired, intangible assets identified, and liabilities assumed of GrandSouth were recorded based on estimates of fair values as of January 1, 2023. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. Estimated fair values were based on management’s best estimates, using the information available at the date of acquisition, including the use of third-party valuation specialists. Management has finalized the valuations of all acquired assets and liabilities assumed in the GrandSouth acquisition.

The following table summarizes the estimated fair value of acquired assets, identified intangible assets, and liabilities assumed as of January 1, 2023. Following the table is a discussion of valuation approaches utilized in

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estimating the fair values in accordance with ASC 805-10, "Business Combinations." The $114.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes.

($ in thousands)	Fair Value Estimate
Assets acquired:
Cash and cash equivalents	$	22,610
Securities available for sale	112,363
Loans, gross	996,833
Allowance for loan losses	(5,610)
Premises and equipment	20,268
Core deposit intangible	28,840
Operating right-of-use lease assets	732
Other assets	27,163
Total	1,203,199
Liabilities assumed:
Deposits	1,045,308
Borrowings	38,800
Other liabilities	4,089
Total	1,088,197
Net identifiable assets acquired	115,002
Less: Total consideration	229,489
Goodwill recorded related to acquisition of GrandSouth	$	114,487

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed included in the table above.

Cash and cash equivalents: This consists primarily of cash and due from banks, and interest-bearing deposits with banks. The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets.

Securities available for sale: Fair value of securities was measured based on quoted market prices, where available. If a quoted market price was not available, fair value was estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. Substantially all of the securities acquired from GrandSouth were liquidated at their recorded fair value upon close of the transaction or shortly thereafter. There was no gain or loss recorded on the sale of acquired securities.

Loans: Fair value of loans acquired was based on a discounted cash flow methodology that considered factors including loan type and related collateral, classification status, remaining term of the loan, fixed or variable interest rate, amortization status, and current discount rates. Expected cash flows were derived using inputs consistent with management's assessment of credit risk for allowance measurement, including estimated future credit losses and estimated prepayments. A total fair value mark of $29.5 million was recorded. Purchased loans with financial deterioration ("PCD loans") were determined based primarily on internal grades, delinquency status, and other evidence of credit deterioration. The Company calculated the "Day 1" allowance of $5.6 million on PCD loans in accordance with its current expected credit loss model ("CECL") and reclassified that amount from the fair value mark to establish the initial ACL on PCD loans. The following table presents additional information related to the acquired loan portfolio at the acquisition date:

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($ in thousands)	January 1, 2023
PCD Loans:
Par value	$	152,487
Allowance for credit losses	(5,610)
Non-credit discount	(1,370)
Purchase price	145,507
Non-PCD Loans:
Fair Value	845,716
Gross contractual amounts receivable	865,132
Estimate of contractual cash flows not expected to be collected	22,542

Premises: Land and buildings held for use were valued at appraised values, which reflected considerations of recent disposition values for similar property types with adjustments for characteristics of individual properties.

Intangible assets: Core deposit intangible ("CDI") asset represents the value of the relationships with deposit customers. The fair value for the core deposit intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of deposit base, net maintenance cost attributable to customer deposits and an estimate of the cost associated with alternative funding sources. The discount rates used for CDI assets were based on market rates. The CDI is being amortized over 10 years utilizing the sum of the months digits accelerated method, which results in a weighted-average amortization period of approximately 41 months.

Lease Assets and Lease Liabilities: Lease assets and lease liabilities were measured using a methodology that involved estimating the future lease payments over the remaining lease term with discounting using a discount rate. The lease term was determined for individual leases based on management's assessment of the probability of exercising existing renewal options.

Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis applying interest rates currently offered to the contractual interest rates on such time deposits.

Borrowings: The fair values of long-term debt instruments were estimated based on quoted market prices for instrument if available, or for similar instruments if not available.

Supplemental Pro Forma Financial Information

The following table presents certain pro forma information as if GrandSouth had been acquired on January 1, 2022. These results combine the historical results of GrandSouth with the Company’s results and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2022.

Merger-related costs related to this acquisition of $1.3 million and $13.5 million for the three and six months ended June 30, 2023 were recorded by the Company and were excluded from the pro forma information below. In addition, no adjustments have been made to such pro forma information to eliminate the provision for loan losses recorded by GrandSouth in the amount of $0.1 million and $0.4 million for the three and six months ended June 30, 2022.

Pro forma information for the three and six months ended June 30, 2023 was adjusted to eliminate the following: 1) the non-PCD provision for loan losses recorded on the acquisition date of $12.2 million and 2) the initial recording of a provision for credit losses associated with GrandSouth’s unfunded commitments of $1.9 million. If the GrandSouth acquisition had occurred at the beginning of 2022, the acquisition date credit loss reserve amounts would have been included in the fair value measurements of GrandSouth and also included in the goodwill calculation.

The following table also discloses the impact of the acquisition of GrandSouth from the acquisition date of January 1, 2023 through June 30, 2023. These amounts are included in the Company’s consolidated financial statements as of and for the three and six months ended June 30, 2023. Merger-related costs have been excluded from these

Page 14

amounts and the provisions for credit loss amounts associated with non-PCD loans and unfunded commitments that were discussed above have also been excluded.

($ in thousands)	For the three months ended				For the six months ended
	June 30, 2023				June 30, 2023
	Revenue		Net Income		Revenue		Net Income
Actual GrandSouth results included in statement of income since acquisition date	$	13,767	$	5,132	$	29,307	$	10,951
($ in thousands)	For the three months ended				For the six months ended
	June 30, 2022				June 30, 2022
	Revenue		Net Income		Revenue		Net Income
Supplemental consolidated pro forma for the Company as if GrandSouth had been acquired on January 1, 2022	110,248		39,746		220,672		77,213

Note 3 – Securities

The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:

($ in thousands)	June 30, 2023					December 31, 2022
	Amortized Cost		Fair Value	Unrealized		Amortized Cost	Fair Value	Unrealized
				Gains	(Losses)			Gains	(Losses)
Securities available for sale:
U.S. Treasuries	$	174,601	169,613	—	(4,988)	174,420	168,758	—	(5,662)
Government-sponsored enterprise securities	71,960		58,511	—	(13,449)	71,957	57,456	—	(14,501)
Mortgage-backed securities	2,393,696		1,973,539	1	(420,158)	2,467,839	2,045,000	4	(422,843)
Corporate bonds	19,674		18,123	—	(1,551)	44,340	43,279	—	(1,061)
Total available for sale	$	2,659,931	2,219,786	1	(440,146)	2,758,556	2,314,493	4	(444,067)
Securities held to maturity:
Mortgage-backed securities	$	13,502	12,610	—	(892)	15,150	14,221	—	(929)
State and local governments	524,319		429,271	6	(95,054)	526,550	418,307	7	(108,250)
Total held to maturity	$	537,821	441,881	6	(95,946)	541,700	432,528	7	(109,179)

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSE"), except for private mortgage-backed securities with a fair value of $0.8 million and $0.8 million as of June 30, 2023 and December 31, 2022, respectively.

The following table presents information regarding all securities with unrealized losses at June 30, 2023:

Page 15

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Treasuries	$	—	—	169,613	4,988	169,613	4,988
Government-sponsored enterprise securities	—		—	58,511	13,449	58,511	13,449
Mortgage-backed securities	39,491		1,836	1,945,483	419,214	1,984,974	421,050
Corporate bonds	2,618		306	13,754	1,245	16,372	1,551
State and local governments	5,240		38	423,008	95,016	428,248	95,054
Total unrealized loss position	$	47,349	2,180	2,610,369	533,912	2,657,718	536,092

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

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasury securities	$	168,758	5,662	—	—	168,758	5,662
Government-sponsored enterprise securities	—		—	57,456	14,501	57,456	14,501
Mortgage-backed securities	221,006		18,215	1,835,958	405,557	2,056,964	423,772
Corporate bonds	40,644		947	886	114	41,530	1,061
State and local governments	48,385		8,323	368,897	99,927	417,282	108,250
Total unrealized loss position	$	478,793	33,147	2,263,197	520,099	2,741,990	553,246

As of June 30, 2023, the Company's securities portfolio held 657 securities of which 645 securities were in an unrealized loss position. As of December 31, 2022, the Company's securities portfolio held 666 securities of which 644 securities were in an unrealized loss position.

In the above tables, all of the securities that were in an unrealized loss position at June 30, 2023 and December 31, 2022 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the severity of the impairment. The state and local government investments are comprised almost entirely of highly-rated municipal bonds issued by state and local governments throughout the nation. The Company has no significant concentrations of bond holdings from one state or local government entity. Nearly all of our mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or the Small Business Administration ("SBA"), each of which is a government agency or GSE and guarantees the repayment of the securities. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

At June 30, 2023 and December 31, 2022, the Company determined that expected credit losses associated with held to maturity debt securities were insignificant.

The book values and approximate fair values of investment securities at June 30, 2023, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

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	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	99,944	97,508	—	—
Due after one year but within five years	77,166		74,338	996	887
Due after five years but within ten years	88,125		73,458	92,917	77,987
Due after ten years	1,000		943	430,406	350,397
Mortgage-backed securities	2,393,696		1,973,539	13,502	12,610
Total securities	$	2,659,931	2,219,786	537,821	441,881

At June 30, 2023 and December 31, 2022, investment securities with carrying values of $1.6 billion and $758.0 million, respectively, were pledged as collateral for public deposits or at the Federal Reserve Bank of Richmond ("Federal Reserve") as security on lines of credit.

At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity.

There were no sales of investment securities during the three or six months ended June 30, 2023.

Included in “Other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $54.9 million and $39.6 million at June 30, 2023 and December 31, 2022, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $22.1 million and $14.7 million at June 30, 2023 and December 31, 2022, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The Federal Reserve stock had a cost and fair value of $32.7 million and $24.9 million at June 30, 2023 and December 31, 2022, respectively, and is a requirement for Federal Reserve member bank qualification. Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end.

The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at June 30, 2023 was approximately 1.59, which means the Company would have received approximately 19,649 Class A shares if the stock had converted on that date. This Class B stock does not have a readily determinable fair value and is carried at zero. If a readily determinable fair value becomes available for the Class B shares, or upon their conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.

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

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

($ in thousands)	June 30, 2023				December 31, 2022
	Amount		Percentage		Amount		Percentage
Commercial and industrial	$	888,391	11	%	$	641,941	9	%
Construction, development & other land loans	1,109,769		14	%	934,176		14	%
Commercial real estate - owner occupied	1,222,189		16	%	1,036,270		16	%
Commercial real estate - non owner occupied	2,423,262		31	%	2,123,811		32	%
Multi-family real estate	392,120		5	%	350,180		5	%
Residential 1-4 family real estate	1,461,068		18	%	1,195,785		18	%
Home equity loans/lines of credit	334,566		4	%	323,726		5	%
Consumer loans	67,077		1	%	60,659		1	%
Subtotal	7,898,442		100	%	6,666,548		100	%
Unamortized net deferred loan fees	(813)				(1,403)
Total loans	$	7,897,629			$	6,665,145

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.

($ in thousands)	June 30, 2023		December 31, 2022
Guaranteed portions of SBA loans included in table above	$	39,339	31,893
Unguaranteed portions of SBA loans included in table above	114,643		116,910
Total SBA loans included in the table above	$	153,982	148,803
Sold portions of SBA loans with servicing retained - not included in tables above	$	371,943	392,370

At June 30, 2023 and December 31, 2022, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $3.8 million and $4.3 milion, respectively.

At June 30, 2023 and December 31, 2022, loans in the amount of $6.1 billion and $5.3 billion, respectively, were pledged as collateral for certain borrowings.

At June 30, 2023 and December 31, 2022, total loans included loans to executive officers and directors of the Company, and their associates, totaling approximately $5.8 million and $6.0 million, respectively. There were two new loans and advances on existing loans totaling approximately $0.1 million for the six months ended June 30, 2023 and repayments amounted to $0.3 million for that period. Available credit on related party loans totaled $1.2 million at June 30, 2023 and December 31, 2022. Management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features.

As of June 30, 2023 and December 31, 2022, unamortized discounts on all acquired loans totaled $29.2 million and $11.6 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.

Nonperforming assets ("NPA") are defined as nonaccrual loans, modifications to borrowers in financial distress, loans past due 90 or more days and still accruing interest, foreclosed real estate, and prior to the adoption of ASU 2022-02 on January 1, 2023, TDRs.

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The following table summarizes the NPAs for each period presented.

($ in thousands)	June 30, 2023		December 31, 2022
Nonaccrual loans	$	29,876	28,514
Modifications to borrowers in financial distress	4,862		—
TDRs - accruing	—		9,121
Total nonperforming loans	34,738		37,635
Foreclosed real estate	1,077		658
Total nonperforming assets	$	35,815	38,293

At June 30, 2023 and December 31, 2022, the Company had $2.7 million and $0.8 million, respectively, in residential mortgage loans in the process of foreclosure.

At both June 30, 2023 and December 31, 2022, there was one loan, respectively, with an immaterial commitment to lend additional funds to borrowers whose loans were nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2023:

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	—	11,299	11,299
Construction, development & other land loans	—		265	265
Commercial real estate - owner occupied	3,277		7,988	11,265
Commercial real estate - non owner occupied	673		1,153	1,826
Multi-family real estate	—		—	—
Residential 1-4 family real estate	—		3,198	3,198
Home equity loans/lines of credit	—		1,867	1,867
Consumer loans	—		156	156
Total	$	3,950	25,926	29,876

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

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	3,855	6,374	10,229
Construction, development & other land loans	—		1,009	1,009
Commercial real estate - owner occupied	3,903		5,770	9,673
Commercial real estate - non owner occupied	1,107		1,725	2,832
Multi-family real estate	—		—	—
Residential 1-4 family real estate	157		3,132	3,289
Home equity loans/lines of credit	—		1,397	1,397
Consumer loans	—		85	85
Total	$	9,022	19,492	28,514

There was no interest income recognized during the periods presented on nonaccrual loans. The Company follows its nonaccrual policy of reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status.

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

($ in thousands)	Six Months Ended June 30, 2023		For the Year Ended December 31, 2022	Six Months Ended June 30, 2022
Commercial and industrial	$	162	102	33
Construction, development & other land loans	2		16	16
Commercial real estate - owner occupied	64		123	100
Commercial real estate - non owner occupied	7		15	2
Multi-family real estate	—		1	—
Residential 1-4 family real estate	20		45	25
Home equity loans/lines of credit	16		20	6
Consumer loans	1		2	2
Total	$	272	324	184

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2023:

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	702	1,127	—	11,299	875,263	888,391
Construction, development & other land loans	585		22	—	265	1,108,897	1,109,769
Commercial real estate - owner occupied	525		400	—	11,265	1,209,999	1,222,189
Commercial real estate - non owner occupied	61		634	—	1,826	2,420,741	2,423,262
Multi-family real estate	—		—	—	—	392,120	392,120
Residential 1-4 family real estate	1,027		1,814	—	3,198	1,455,029	1,461,068
Home equity loans/lines of credit	550		673	—	1,867	331,476	334,566
Consumer loans	229		56	—	156	66,636	67,077
Total	$	3,679	4,726	—	29,876	7,860,161	7,898,442
Unamortized net deferred loan fees							(813)
Total loans							7,897,629

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

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	438	565	—	10,229	630,709	641,941
Construction, development & other land loans	238		1,687	—	1,009	931,242	934,176
Commercial real estate - owner occupied	124		48	—	9,673	1,026,425	1,036,270
Commercial real estate - non owner occupied	496		49	—	2,832	2,120,434	2,123,811
Multi-family real estate	—		—	—	—	350,180	350,180
Residential 1-4 family real estate	3,415		25	—	3,289	1,189,056	1,195,785
Home equity loans/lines of credit	457		371	—	1,397	321,501	323,726
Consumer loans	249		66	—	85	60,259	60,659
Total	$	5,417	2,811	—	28,514	6,629,806	6,666,548
Unamortized net deferred loan fees							(1,403)
Total loans							$	6,665,145

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The Company reviews individually evaluated loans on nonaccrual with a net book balance of $500,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $500,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL.

The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2023:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	1,626	—	—	1,626
Commercial real estate - owner occupied	—		—	—	5,830	5,830
Commercial real estate - non owner occupied	—		—	—	673	673
Total	$	—	1,626	—	6,503	8,129

The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2022:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	6,394	—	—	6,394
Commercial real estate - owner occupied	—		—	—	4,578	4,578
Commercial real estate - non owner occupied	—		—	—	2,145	2,145
Residential 1-4 family real estate	157		—	—	—	157
Total	$	157	6,394	—	6,723	13,274

Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The Company's policy is to obtain third-party appraisals on any significant pieces of collateral. For loans secured by real estate, the Company's policy is to write nonaccrual loans down to 90% of the appraised value, which considers estimated selling costs that are usually incurred when disposing of real estate collateral. For real estate collateral that is in industries which may be undergoing heightened stress due to economic or other external factors, the Company may reduce the collateral values by an additional 10-25% of appraised value to recognize additional discounts that are estimated to be incurred in a near-term sale. For non real estate collateral secured loans, the

Page 21

Company generally writes nonaccrual loans down to 75% of the appraised value, which provides for selling costs and liquidity discounts that are usually incurred when disposing of non real estate collateral. For reviewed loans that are not on nonaccrual basis, the Company assigns a specific allowance based on the parameters noted above.

The Company does not believe that there is significant excess collateral for any of the loan types noted above.

The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the six months ended June 30, 2023 is attributed to the acquisition of GrandSouth. In addition to the "Day 1" allowance recorded for PCD loans of $5.6 million, the Company recorded a "Day 2" initial provision of $12.2 million related to the non-PCD loans in the GrandSouth portfolio. The balance of the change was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to some deterioration in the commercial real estate index.

($ in thousands)	Beginning balance		"Day 1" ACL for acquired PCD loans	Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2023
Commercial and industrial	$	23,073	—	(1,534)	492	1,411	23,442
Construction, development & other land loans	18,986		—	—	158	(667)	18,477
Commercial real estate - owner occupied	16,082		—	—	34	265	16,381
Commercial real estate - non owner occupied	25,990		—	—	38	246	26,274
Multi-family real estate	3,204		—	—	3	739	3,946
Residential 1-4 family real estate	12,285		—	—	79	1,941	14,305
Home equity loans/lines of credit	3,481		—	—	40	196	3,717
Consumer loans	3,295		—	(217)	41	(431)	2,688
Total	$	106,396	—	(1,751)	885	3,700	109,230
As of and for the six months ended June 30, 2023
Commercial and industrial	$	17,718	5,197	(3,711)	766	3,472	23,442
Construction, development & other land loans	15,128		49	—	223	3,077	18,477
Commercial real estate - owner occupied	14,972		191	—	70	1,148	16,381
Commercial real estate - non owner occupied	22,780		51	(235)	432	3,246	26,274
Multi-family real estate	2,957		—	—	7	982	3,946
Residential 1-4 family real estate	11,354		113	—	225	2,613	14,305
Home equity loans/lines of credit	3,158		8	(2)	74	479	3,717
Consumer loans	2,900		1	(424)	77	134	2,688
Total	$	90,967	5,610	(4,372)	1,874	15,151	109,230

Page 22

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the year ended December 31, 2022
Commercial and industrial	$	16,249	(2,519)	756	3,232	17,718
Construction, development & other land loans	16,519		—	480	(1,871)	15,128
Commercial real estate - owner occupied	12,317		(214)	691	2,178	14,972
Commercial real estate - non owner occupied	16,789		(849)	1,281	5,559	22,780
Multi-family real estate	1,236		—	11	1,710	2,957
Residential 1-4 family real estate	8,686		—	17	2,651	11,354
Home equity loans/lines of credit	4,337		(43)	600	(1,736)	3,158
Consumer loans	2,656		(840)	207	877	2,900
Total	$	78,789	(4,465)	4,043	12,600	90,967

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2022
Commercial and industrial	$	16,013	(728)	223	(58)	15,450
Construction, development & other land loans	16,057		—	130	(16)	16,171
Commercial real estate - owner occupied	15,274		(18)	529	(864)	14,921
Commercial real estate - non owner occupied	19,440		(800)	768	716	20,124
Multi-family real estate	2,613		—	3	(467)	2,149
Residential 1-4 family real estate	8,159		—	11	480	8,650
Home equity loans/lines of credit	2,074		—	128	(116)	2,086
Consumer loans	2,439		(214)	80	325	2,630
Total	$	82,069	(1,760)	1,872	—	82,181
As of and for the six months ended June 30, 2022
Commercial and industrial	$	16,249	(1,518)	470	249	15,450
Construction, development & other land loans	16,519		—	267	(615)	16,171
Commercial real estate - owner occupied	12,317		(18)	560	2,062	14,921
Commercial real estate - non owner occupied	16,789		(845)	889	3,291	20,124
Multi-family real estate	1,236		—	6	907	2,149
Residential 1-4 family real estate	8,686		—	15	(51)	8,650
Home equity loans/lines of credit	4,337		(41)	361	(2,571)	2,086
Consumer loans	2,656		(381)	127	228	2,630
Total	$	78,789	(2,803)	2,695	3,500	82,181

Page 23

Credit Quality Indicators

The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type.

The following describes the Company’s internal risk grades in ascending order of likelihood of loss:

	Risk Grade	Description
Pass:
	1	Loans with virtually no risk, including cash secured loans.
	2	Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
	3	Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
	4	Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.
	5	Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
	P (Pass)	Consumer loans that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.
Special Mention:
	6	Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
	7	An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
	8	Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
	9	Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
	F (Fail)	Consumer loans with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.

In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.

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

Page 24

	Term Loans by Year of Origination
($ in thousands)	2023		2022	2021	2020	2019	Prior	Revolving	Total
As of June 30, 2023
Commercial and industrial
Pass	$	74,660	181,469	115,551	84,957	48,034	67,670	298,082	870,423
Special Mention	347		486	335	502	1,094	889	1,068	4,721
Classified	297		1,244	1,991	1,601	1,252	5,274	1,588	13,247
Total commercial and industrial	75,304		183,199	117,877	87,060	50,380	73,833	300,738	888,391
Gross charge-offs, YTD	—		146	696	32	556	764	1,517	3,711
Construction, development & other land loans
Pass	310,613		466,562	214,178	22,440	15,743	9,253	67,372	1,106,161
Special Mention	387		2,212	—	22	—	99	23	2,743
Classified	404		104	81	8	16	228	24	865
Total construction, development & other land loans	311,404		468,878	214,259	22,470	15,759	9,580	67,419	1,109,769
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - owner occupied
Pass	93,809		316,395	325,281	210,414	101,728	123,372	17,491	1,188,490
Special Mention	730		279	720	3,798	5,949	5,850	635	17,961
Classified	425		3,128	1,749	267	2,443	7,636	90	15,738
Total commercial real estate - owner occupied	94,964		319,802	327,750	214,479	110,120	136,858	18,216	1,222,189
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - non owner occupied
Pass	263,968		750,657	781,011	326,322	144,933	115,805	23,895	2,406,591
Special Mention	373		218	40	4,604	1,348	6,087	—	12,670
Classified	96		1,090	16	—	1,425	1,374	—	4,001
Total commercial real estate - non owner occupied	264,437		751,965	781,067	330,926	147,706	123,266	23,895	2,423,262
Gross charge-offs, YTD	—		—	235	—	—	—	—	235
Multi-family real estate
Pass	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Residential 1-4 family real estate
Pass	153,127		393,590	318,229	198,500	98,969	281,467	1,715	1,445,597
Special Mention	697		44	196	151	607	2,036	19	3,750
Classified	312		245	374	811	436	8,928	615	11,721
Total residential 1-4 family real estate	154,136		393,879	318,799	199,462	100,012	292,431	2,349	1,461,068
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Home equity loans/lines of credit
Pass	1,770		3,404	1,275	298	606	1,752	315,797	324,902
Special Mention	223		—	120	—	—	17	77	437
Classified	107		66	151	93	98	125	8,587	9,227
Total home equity loans/lines of credit	2,100		3,470	1,546	391	704	1,894	324,461	334,566
Gross charge-offs, YTD	—		—	—	—	—	—	2	2
Consumer loans
Pass	9,298		16,548	6,956	3,097	808	826	28,963	66,496
Special Mention	—		—	—	—	—	—	—	—
Classified	233		146	77	13	5	12	95	581
Total consumer loans	9,531		16,694	7,033	3,110	813	838	29,058	67,077
Gross charge-offs, YTD	5		8	22	3	—	—	386	424
Total loans	$	947,045	2,284,505	1,904,213	903,812	438,144	650,261	770,462	7,898,442
Unamortized net deferred loan fees									(813)
Total loans, net of deferred loan fees									7,897,629
Total gross charge-offs, year to date	$	5	154	953	35	556	764	1,905	4,372

Page 25

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of December 31, 2022
Commercial and industrial
Pass	$	185,167	107,747	85,110	51,274	590	76,588	120,590	627,066
Special Mention	342		166	648	1,312	—	990	332	3,790
Classified	734		1,909	808	1,384	—	5,762	488	11,085
Total commercial and industrial	186,243		109,822	86,566	53,970	590	83,340	121,410	641,941
Construction, development & other land loans
Pass	550,752		267,096	42,421	30,973	—	12,722	19,519	923,483
Special Mention	5,128		5	3,679	—	—	100	13	8,925
Classified	656		107	38	899	—	44	24	1,768
Total construction, development & other land loans	556,536		267,208	46,138	31,872	—	12,866	19,556	934,176
Commercial real estate - owner occupied
Pass	258,025		305,324	190,464	96,495	179	141,053	15,499	1,007,039
Special Mention	1,170		1,070	4,042	6,926	—	3,277	665	17,150
Classified	3,060		208	84	1,572	—	6,790	367	12,081
Total commercial real estate - owner occupied	262,255		306,602	194,590	104,993	179	151,120	16,531	1,036,270
Commercial real estate - non owner occupied
Pass	718,696		747,653	319,708	141,284	—	168,096	21,159	2,116,596
Special Mention	545		44	394	1,363	—	1,180	—	3,526
Classified	420		1,057	—	884	—	1,328	—	3,689
Total commercial real estate - non owner occupied	719,661		748,754	320,102	143,531	—	170,604	21,159	2,123,811
Multi-family real estate
Pass	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Residential 1-4 family real estate
Pass	317,282		274,756	186,102	98,559	185	301,885	1,379	1,180,148
Special Mention	1,189		127	110	470	—	2,416	—	4,312
Classified	763		251	221	359	—	9,072	659	11,325
Total residential 1-4 family real estate	319,234		275,134	186,433	99,388	185	313,373	2,038	1,195,785
Home equity loans/lines of credit
Pass	869		1,091	349	237	—	2,020	309,786	314,352
Special Mention	175		—	—	—	—	18	1,072	1,265
Classified	106		156	94	87	—	213	7,453	8,109
Total home equity loans/lines of credit	1,150		1,247	443	324	—	2,251	318,311	323,726
Consumer loans
Pass	35,406		7,946	3,610	1,056	3	1,250	10,953	60,224
Special Mention	—		—	—	—	—	—	—	—
Classified	320		31	3	1	—	25	55	435
Total consumer loans	35,726		7,977	3,613	1,057	3	1,275	11,008	60,659
Total loans	$	2,200,727	1,850,445	897,337	444,804	957	750,041	522,237	6,666,548
Unamortized net deferred loan fees									(1,403)
Total loans, net of deferred loan fees									6,665,145

Page 26

Loan Modifications to Borrowers Experiencing Financial Difficulty

Effective January 1, 2023, we adopted ASU 2022-02 which eliminated the accounting guidance for TDRs and requires disclosures for certain loan modifications when a borrower is experiencing financial difficulty.

Occasionally, the Company modifies loans to borrowers in financial distress as a part of our loss mitigation activities. Various types of modification may be offered including principal forgiveness, term extension, payment delays, or interest rate reductions. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. For loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

The followings tables present the amortized cost basis at June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted. Percentages labeled as "NM" are not measurable to the class of financing receivable, as they are less than 0.1% of the total class.

($ in thousands)	Payment Delay		Term Extension	Combination - Interest Rate Reduction and Term Extension	Total	Percent of Total Class of Loans
As of and for the three months ended June 30, 2023
Commercial and industrial	$	1,363	30	—	1,393	0.16	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Residential 1-4 family real estate	—		469	—	469	0.03	%
Home equity loans/lines of credit	—		1,317	—	1,317	0.39	%
Total	$	1,551	2,103	—	3,654	0.05	%
As of and for the six months ended June 30, 2023
Commercial and industrial	$	1,513	105	—	1,618	0.18	%
Construction, development & other land loans	—		502	12	514	0.05	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Commercial real estate - non owner occupied	—		96	—	96	NM
Residential 1-4 family real estate	—		515	—	515	0.04	%
Home equity loans/lines of credit	—		1,416	—	1,416	0.42	%
Consumer loans	—		228	—	228	0.34	%
Total	$	1,701	3,149	12	4,862	0.06	%

For the three and six months ended June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following tables describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:

Page 27

	Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
	Weighted Average Interest Rate Reduction	Weighted Average Payment Delay (in months)	Weighted Average Term Extension (in months)
For the three months ended June 30, 2023
Commercial and industrial	—%	2	25
Commercial real estate - owner occupied	—%	12	49
Residential 1-4 family real estate	—%	0	25
Home equity loans/lines of credit	—%	0	42
For the six months ended June 30, 2023
Commercial and industrial	—%	2	13
Construction, development & other land loans	1.50%	0	7
Commercial real estate - owner occupied	—%	12	49
Commercial real estate - non owner occupied	—%	0	15
Residential 1-4 family real estate	—%	0	24
Home equity loans/lines of credit	—%	0	40
Consumer loans	—%	0	6

The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:

	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-59 Days Past Due	60-89 Days Past Due	90+ Days Past Due
Commercial and industrial	$	1,618	—	—	—
Construction, development & other land loans	514		—	—	—
Commercial real estate - owner occupied	475		—	—	—
Commercial real estate - non owner occupied	96		—	—	—
Multi-family real estate	—		—	—	—
Residential 1-4 family real estate	345		—	170	—
Home equity loans/lines of credit	1,416		—	—	—
Consumer loans	228		—	—	—
	$	4,692	—	170	—

None of the modifications made for borrowers experiencing financial difficulty during the three and six months ended June 30, 2023 are considered to have had a payment default.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.

TDR Disclosures Prior to the Adoption of ASU 2022-02

The restructuring of a loan was considered a TDR if both (i) the borrower was experiencing financial difficulties and (ii) the creditor had granted a concession. Concessions may have included interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses.

The vast majority of the Company’s TDRs modified during the periods ended June 30, 2022 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness.

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

Page 28

The following table presents information related to loans modified in a TDR during the three and six months ended June 30, 2022.

	For the three months ended June 30, 2022				For the six months ended June 30, 2022
($ in thousands)	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances
TDRs - Accruing
Commercial and industrial	1	$	161	161	1	$	161	161
Construction, development & other land loans	1	131		131	1	131		131
Residential 1-4 family real estate	—	—		—	1	36		36
Home equity loans/lines of credit	2	203		203	2	203		203
TDRs - Nonaccrual
Commercial and industrial	2	259		259	3	300		300
Commercial real estate - owner occupied	1	244		244	2	784		784
Residential 1-4 family real estate	—	—		—	1	36		36
Total TDRs arising during period	7	$	998	998	11	$	1,651	1,651

The Company considered a TDR loan to have defaulted when it became 90 or more days delinquent under the modified terms, had been transferred to nonaccrual status, or had been transferred to foreclosed real estate. There were no accruing TDRs that were modified in the previous twelve months and that defaulted during the three and six months ended June 30, 2022.

Concentration of Credit Risk

Most of the Company's business activity is with customers located within the markets where it has banking operations. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy within its markets. Approximately 88% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations.

Allowance for Credit Losses - Unfunded Loan Commitments

In addition to the ACL on loans, the Company maintains an ACL for lending-related commitments such as unfunded loan commitments and letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for unfunded commitments expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans. The ACL for unfunded loan commitments of $13.0 million and $13.3 million at June 30, 2023 and December 31, 2022, respectively, were separately classified on the Consolidated Balance Sheets within "Other liabilities."

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2023 and 2022 and for the twelve months ended December 31, 2022:

Page 29

($ in thousands)	June 30, 2023		December 31, 2022	June 30, 2022
Beginning balance	$	13,306	13,506	13,506
"Day 2" provision for credit losses on unfunded commitments acquired from GrandSouth	1,921		—	—
Charge-offs	—		—	—
Recoveries	—		—	—
Reversal of provision for unfunded commitments	(2,209)		(200)	(1,500)
Ending balance	$	13,018	13,306	12,006

Allowance for Credit Losses - Securities Held to Maturity

The ACL for securities held to maturity was insignificant at June 30, 2023 and December 31, 2022.

Note 5 – Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.

	June 30, 2023			December 31, 2022
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	2,007	2,700	1,847
Core deposit intangibles	57,890		25,296	29,050	21,274
Other intangibles	100		71	100	58
Intangibles before servicing assets	60,690		27,374	31,850	23,179
SBA servicing assets	13,536		9,755	13,264	9,260
Total amortizable intangible assets	$	74,226	37,129	45,114	32,439
Unamortizable intangible assets:
Goodwill	$	478,750		364,263

Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate.

Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $2.0 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $4.2 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively.

SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees."

Page 30

The following table presents the changes in the SBA servicing assets and SBA servicing income for the three and six months ended June 30, 2023 and 2022:

	Three months ended June 30,			Six months ended June 30,
($ in thousands)	2023		2022	2023	2022
Beginning balance, net	$	3,897	5,591	4,004	5,472
Add: New servicing assets	195		281	271	1,026
Less: Amortization and impairment expense	311		905	494	1,531
Ending balance, net	$	3,781	4,967	3,781	4,967
SBA guaranteed servicing income	$	863	992	1,847	1,781

At June 30, 2023 and December 31, 2022, the Company serviced SBA loans totaling $371.9 million and $392.4 million, respectively, for others. There were no other loans serviced in any period presented.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. No triggering events were identified during 2023 to date or in 2022, and therefore, the Company did not perform interim impairment evaluations in either of those periods. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2022 evaluation, indicated that there was no goodwill impairment.

The following table presents the changes in carrying amounts of goodwill:

($ in thousands)	Total Goodwill
Balance at December 31, 2021	$	364,263
Net activity during 2022	—
Balance at December 31, 2022	364,263
Additions from acquisition of GrandSouth	114,487
Balance at June 30, 2023	$	478,750

In connection with the GrandSouth acquisition on January 1, 2023, the Company recorded $28.8 million in core deposit intangibles.

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

($ in thousands)	Estimated Amortization Expense
July 1, 2023 to December 31, 2023	$	3,808
2024	6,604
2025	5,672
2026	4,705
2027	3,951
Thereafter	8,576
Total	$	33,316

Page 31

Note 6 - Borrowings

The following tables present information regarding the Company’s outstanding borrowings at June 30, 2023 and December 31, 2022 (dollars in thousands):

Description	Due date	Call Feature	June 30, 2023		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	8	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	891		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	208		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	34		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	322		0.50% fixed
FHLB Daily Rate Credit	7/13/2023	None	75,000		5.24% fixed
FHLB Fixed Rate Credit	9/13/2023	None	300,000		5.17% fixed
FHLB Fixed Rate Hybrid	9/29/2023	None	5,000		0.40% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.95% at 6/30/23 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		8.05% at 6/30/23 adjustable rate  3 month LIBOR + 2.75%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		7.66% at 6/30/23 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		7.26% at 6/30/23 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.26% at 6/30/23 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	6/23/2036	Quarterly by the Company beginning 6/23/2011	8,248		7.39% at 6/30/23 adjustable rate 3 month LIBOR + 1.85%
Subordinated Debentures	11/30/2028	Semi-annually by Company beginning 11/30/2023	10,000		6.50% fixed
Subordinated Debentures	11/15/2030	Semi-annually by Company beginning 11/15/2025	18,000		4.38% fixed
Total borrowings / weighted average rate as of June 30, 2023			487,097		5.44%
Unamortized discount on acquired borrowings			(5,439)
Total borrowings			$	481,658

As discussed in Note 1, with the June 30, 2023 cessation of LIBOR, the index for the interest rates on the Company's trust preferred securities will automatically convert to the 3-month CME Term SOFR plus a spread intended to approximate the current interest rate. No material impact on the Company's financial statements is anticipated upon the next interest rate reset based on the SOFR index.

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Description	Due date	Call Feature	December 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	32	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	912		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	214		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	38		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	158		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	159		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	329		0.50% fixed
FHLB Daily Rate Credit	8/23/2023	None	40,000		4.57% fixed
FHLB Fixed Rate Credit	1/9/2023	None	50,000		4.15% fixed
FHLB Fixed Rate Credit	2/1/2023	None	80,000		4.25% fixed
FHLB Fixed Rate Credit	2/9/2023	None	50,000		4.35% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.06% at 12/31/22 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.16% at 12/31/22 adjustable rate 3 month LIBOR + 2.75%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.16% at 12/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		6.90% at 12/31/22 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		6.08% at 12/31/22 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2022			290,918		4.82%
Unamortized discount on acquired borrowings			(3,411)
Total borrowings			$	287,507

Note 7 – Leases

The Company enters into leases in the normal course of business. As of June 30, 2023, the Company leased 17 branch offices for which the land and buildings are leased and 10 branch offices for which the land is leased but the buildings are owned. The Company also leases office space for several operational departments. All of the Company’s leases are operating leases under applicable accounting standards and the lease agreements have maturity dates ranging from July 2023 through May 2076, some of which include options for multiple five- and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.3 years as of June 30, 2023. Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense. As permitted by applicable accounting standards, the Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's Consolidated Balance Sheets. The short-term lease cost for each period presented was insignificant.

Leases are classified as either operating or finance leases at the lease commencement date, and as previously noted, all of the Company's leases have been determined to be operating leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the applicable lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

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The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 3.07% as of June 30, 2023.

Total operating lease expenses were $0.8 million and $0.7 million for the three months ended June 30, 2023 and 2022, respectively, and $1.5 million and $1.6 million for the six months ended June 30, 2023 and 2022, respectively. The right-of-use assets and lease liabilities were $18.4 million and $19.1 million as of June 30, 2023, respectively, and were $18.7 million and $19.4 million as of December 31, 2022, respectively.

Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows.

($ in thousands)
July 1, 2023 to December 31, 2023	$	1,180
2024	2,163
2025	1,706
2026	1,685
2027	1,547
Thereafter	18,441
Total undiscounted lease payments	26,722
Less effect of discounting	(7,613)
Present value of estimated lease payments (lease liability)	$	19,109

Note 8 – Pension Plans

The Company sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”) which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, no additional accruals of benefits under these plans for service subsequent to 2012 have been made.

The Company recorded periodic pension cost totaling $50,000 and $51,000 for the three months ended June 30, 2023 and 2022, respectively, and $101,000 and $102,000 for the six months ended June 30, 2023 and 2022, respectively. The following table contains the components of the pension cost:

	For the Three Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	266		28	294	267	28	295
Expected return on plan assets	(288)		—	(288)	(288)	—	(288)
Amortization of net loss (gain)	180		(136)	44	180	(136)	44
Net periodic pension cost	$	158	(108)	50	159	(108)	51
	For the Six Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	533		56	589	534	56	590
Expected return on plan assets	(576)		—	(576)	(576)	—	(576)
Amortization of net (gain)/loss	360		(272)	88	360	(272)	88
Net periodic pension cost	$	317	(216)	101	318	(216)	102

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

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company did not contribute to the Pension Plan in the first six months of 2023 and does not expect to contribute to the Pension Plan in the remainder of 2023. Effective March 31, 2023, the Company determined that the Pension Plan will be terminated during 2023 and a termination cost estimate of $2.4 million is included in the accompanying consolidated income statement.

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

Note 9 – Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2023:

($ in thousands) Description of Financial Instruments	Fair Value at June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
U.S. Treasury	$	169,613	—	169,613	—
Government-sponsored enterprise securities	58,511		—	58,511	—
Mortgage-backed securities	1,973,539		—	1,973,539	—
Corporate bonds	18,123		—	18,123	—
Total available for sale securities	$	2,219,786	—	2,219,786	—
Presold mortgages in process of settlement	$	4,953	4,953	—	—
Nonrecurring
Individually evaluated loans	$	2,399	—	—	2,399

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2022:

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($ in thousands) Description of Financial Instruments	Fair Value at December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
US Treasury securities	$	168,758	—	168,758	—
Government-sponsored enterprise securities	57,456		—	57,456	—
Mortgage-backed securities	2,045,000		—	2,045,000	—
Corporate bonds	43,279		—	43,279	—
Total available for sale securities	$	2,314,493	—	2,314,493	—
Presold mortgages in process of settlement	$	1,282	1,282	—	—
Nonrecurring
Individually evaluated loans	$	9,590	—	—	9,590
Foreclosed real estate	38		—	—	38

The following is a description of the valuation methodologies used for financial instruments measured at fair value.

Presold Mortgages in Process of Settlement — The fair value is based on the committed price that an investor has agreed to pay for the loan and is considered a Level 1 input.

Securities Available for Sale — When quoted market prices are available in an active market, the securities are classified as Level 1 in the valuation hierarchy. If quoted market prices are not available, but fair values can be estimated by observing quoted prices of securities with similar characteristics, the securities are classified as Level 2 in the valuation hierarchy. Most of the fair values for the Company’s Level 2 securities are determined by our third-party bond accounting provider using matrix pricing. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. For the Company, Level 2 securities include U.S. Treasury bonds, mortgage-backed securities, commercial mortgage-backed obligations, GSEs, and corporate bonds. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Individually evaluated loans — Fair values for individually evaluated loans are measured on a non-recurring basis and are based on (1) the underlying collateral values securing the loans, adjusted for estimated selling costs, or (2) the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is generally determined by third-party appraisers using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3). The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the loans first became impaired, and thus the appraisals are not necessarily as of the period ends presented. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

Foreclosed real estate — Foreclosed real estate, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value. Fair value is measured on a non-recurring basis and is based upon independent market prices or current appraisals that are generally prepared using an income or market valuation approach and conducted by an independent, licensed third party appraiser, adjusted for estimated selling costs (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the assets were acquired, and thus the appraisals are not necessarily as of the period ends presented. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the ACL. For any real estate valuations

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subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income.

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	2,399	Appraised value	Discounts applied for estimated costs to sell	10%

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

($ in thousands)	Fair Value at December 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	5,680	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	3,910		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	5.5%-11.1% (6.76%)
Foreclosed real estate	38		Appraised value	Discounts applied for estimated costs to sell	10%

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2023 and December 31, 2022 were as follows:

		June 30, 2023			December 31, 2022
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value	Carrying Amount	Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1	$	101,215	101,215	101,133	101,133
Due from banks, interest-bearing	Level 1	259,460		259,460	169,185	169,185
Securities held to maturity	Level 2	537,821		441,881	541,700	432,528
Total loans, net of allowance	Level 3	7,788,399		7,339,310	6,574,178	6,240,870
Accrued interest receivable	Level 1	33,446		33,446	29,710	29,710
Bank-owned life insurance	Level 1	181,659		181,659	164,592	164,592
SBA Servicing Asset	Level 3	3,781		4,664	4,004	4,721
Deposits	Level 2	10,168,569		10,156,818	9,227,529	9,218,945
Borrowings	Level 2	481,658		467,096	287,507	277,146
Accrued interest payable	Level 1	4,845		4,845	2,738	2,738

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

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ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

Note 10 – Stock-Based Compensation

The Company recorded total stock-based compensation expense of $1.1 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $2.2 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively. In addition, the Company recognized $261,000 and $149,000 of income tax benefits related to stock-based compensation expense for the three months ended June 30, 2023 and 2022, respectively, and $520,000 and $275,000 for the six months ended June 30, 2023 and 2022, respectively.

At June 30, 2023, the sole equity-based compensation plan of the Company was the First Bancorp 2014 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 8, 2014. As of June 30, 2023, the Equity Plan had 205,498 shares remaining available for grant.

The Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the plans' participants with those of the Company and its shareholders. The Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted stock, restricted performance stock, unrestricted stock, and performance units.

Recent equity awards to employees have been made in the form of shares of restricted stock awards with service vesting conditions only. Compensation expense for these awards is recorded over the requisite service periods. Upon forfeiture, any previously recognized compensation cost is reversed. Upon a change in control (as defined in the Equity Plan), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested.

Certain of the Company’s equity grants contain terms that provide for an annual or cliff vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with vesting schedules on a straight-line basis over the requisite service period for each incremental award. Compensation expense is based on the estimated number of stock awards that will ultimately vest. Over the past five years, there have been insignificant amounts of forfeitures, and therefore the Company assumes that all awards granted with service conditions only will vest.

In addition to employee equity awards, the Company's practice is to grant common shares, valued at approximately $37,500 for the current year, to each non-employee director (currently 14 in total) in June of each year. Compensation expense associated with these director awards is recognized on the date of award since there are no vesting conditions.

The following table presents information regarding the activity for the first six months of 2023 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2023	223,012	$	36.14
Granted during the period	143,380	37.08
Vested during the period	(25,811)	24.52
Forfeited or expired during the period	(791)	37.88
Nonvested at June 30, 2023	339,790	$	37.15

Total unrecognized compensation expense as of June 30, 2023 amounted to $7.3 million with a weighted-average remaining term of 2.2 years. For the nonvested awards that are outstanding at June 30, 2023, the Company expects to record $4.0 million in compensation expense in the next 12 months, $2.4 million of which is expected to be recorded in the remaining quarters of 2023.

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As discussed in Note 2, in conjunction with the GrandSouth acquisition, GrandSouth common stock options outstanding at January 1, 2023 became fully vested under the change in control provisions in the GrandSouth option plans and were converted into replacement options to acquire 0.91 shares of the Company's common stock.

Stock option activity and related information is presented below as of and for the periods indicated:

	Options Outstanding
	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value ($ in thousands)
Balance at January 1, 2023	—	$	—
Replacement options issued in conjunction with acquisition of GrandSouth	542,345	20.14
Exercised during the period	(192,178)	19.27
Forfeited or expired during the period	—	—
Outstanding at June 30, 2023	350,167	20.62		6.27	$	3,270
Exercisable at June 30, 2023	350,167	$	20.62	6.27	$	3,270

Stock options outstanding are summarized as follows as of June 30, 2023:

Shares	Range	Weighted Average Price	Weighted Average Remaining Life in Years
112,822	$13.79 - 18.18	15.63	4.65
121,320	$18.19	18.19	5.98
116,025	$18.20 - 31.32	28.00	8.16
350,167		20.62	6.27

In accordance with ASC 805-30, the fair value of the replacement options issued in conjunction with the GrandSouth acquisition as of January 1, 2023 was measured using the Black-Scholes option pricing model and the weighted average fair value of replacement options was $24.85.

The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted:

	For the Six Months Ended
	June 30, 2023
Fair value per option, weighted average	$	24.85
Expected life (years)	1.4 - 4.7
Expected stock price volatility, weighted average	46.39		%
Expected dividend yield	2.05		%
Risk-free interest rate, weighted average	4.18		%
Expected forfeiture rate	—		%

The expected life is based on historical exercises and forfeitures experience of the grantees. The volatility is based on historical price volatility. The risk-free interest rate is based on a U.S. Treasury instrument with a life that is similar to the expected life of the option grant.

At June 30, 2023, the Company had no unrecognized compensation expense related to stock options. All unexercised options expire 10 years after the applicable original grant dates under the GrandSouth stock option plan.

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Note 11 – Earnings Per Share

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

	For the Three Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	29,403				$	36,585
Less: income allocated to restricted stock	(201)					(172)
Basic EPS per common share	$	29,202	40,721,840	$	0.72	$	36,413	35,474,664	$	1.03
Diluted EPS:
Net income	$	29,403	40,721,840			$	36,585	35,474,664
Effect of dilutive securities	—		407,260			—		167,807
Diluted EPS per common share	$	29,403	41,129,100	$	0.71	$	36,585	35,642,471	$	1.03
	Six Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	44,564				$	70,554
Less: income allocated to restricted stock	(299)					(326)
Basic EPS per common share	$	44,265	40,665,172	$	1.09	$	70,228	35,476,902	$	1.98
Diluted EPS:
Net income	$	44,564	40,665,172			$	70,554	35,476,902
Effect of dilutive securities	—		458,697			—		164,826
Diluted EPS per common share	$	44,564	41,123,869	$	1.08	$	70,554	35,641,728	$	1.98

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Note 12 – Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) ("AOCI") for the Company are as follows:

($ in thousands)	June 30, 2023		December 31, 2022
Unrealized loss on securities available for sale	$	(440,145)	(444,063)
Deferred tax asset	101,894		102,046
Net unrealized loss on securities available for sale	(338,251)		(342,017)
Postretirement plans liability	143		54
Deferred tax asset	(34)		(12)
Net postretirement plans liability	109		42
Total accumulated other comprehensive loss	$	(338,142)	(341,975)

The following tables disclose the changes in AOCI for the three and six months ended June 30, 2023 and 2022 (all amounts are net of tax):

	For the Three Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(314,109)	75	(314,034)
Other comprehensive loss before reclassifications	(24,142)		—	(24,142)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(24,142)		34	(24,108)
Ending balance	$	(338,251)	109	(338,142)
	For the Three Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(164,717)	(238)	(164,955)
Other comprehensive loss before reclassifications	(84,431)		—	(84,431)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(84,431)		34	(84,397)
Ending balance	$	(249,148)	(204)	(249,352)

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	For the Six Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(342,017)	42	(341,975)
Other comprehensive gain before reclassifications	3,766		—	3,766
Amounts reclassified from accumulated other comprehensive income	—		67	67
Net current-period other comprehensive income	3,766		67	3,833
Ending balance	$	(338,251)	109	(338,142)
	For the Six Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(224,450)		—	(224,450)
Amounts reclassified from accumulated other comprehensive income	—		68	68
Net current-period other comprehensive (loss) income	(224,450)		68	(224,382)
Ending balance	$	(249,148)	(204)	(249,352)

Amounts reclassified from AOCI for unrealized gain (loss) on securities available for sale represent realized securities gains or losses, net of tax effects. There were no security sales in any period presented. Amounts reclassified from AOCI for postretirement plans asset (liability) represent amortization of amounts included in AOCI, net of taxes, and are recorded in the "Other operating expenses" line item of the Consolidated Statements of Income.

Note 13 – Revenue from Contracts with Customers

All of the Company’s revenues that are in the scope of the “Revenue from Contracts with Customers” accounting standard (“ASC 606”) are recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended			For the Six Months Ended
($ in thousands)	June 30, 2023		June 30, 2022	June 30, 2023	June 30, 2022
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts	$	4,114	3,700	8,008	7,241
Other service charges and fees:
Bankcard interchange income, net	2,368		4,812	4,950	9,523
Other service charges and fees	3,255		1,490	6,572	2,753
Commissions from sales of financial products	1,413		1,151	2,719	2,096
SBA consulting fees	409		704	930	1,484
Noninterest income (in-scope of ASC 606)	11,559		11,857	23,179	23,097
Noninterest income (out-of-scope of ASC 606)	2,676		5,407	4,592	13,418
Total noninterest income	$	14,235	17,264	27,771	36,515

A description of the Company’s revenue streams accounted for under ASC 606 is detailed below.

Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Overdraft fees are recognized at the point in time that the overdraft occurs. Maintenance and activity fees include account maintenance fees and transaction-based fees. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, are recognized at the

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time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Service charges on deposits are withdrawn from the customer’s account balance.

Other service charges and fees: The Company earns interchange income on its customers’ debit and credit card usage and earns fees from other services utilized by its customers. Interchange income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange fees are offset with interchange expenses and are presented on a net basis. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, ATM surcharge fees, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Commissions from the sales of financial products: The Company earns commissions from the sale of wealth management products which primarily consist of commissions received on financial product sales, such as annuities. The Company’s performance obligation is generally satisfied upon the issuance of the financial product. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company also earns some fees from asset management, which is billed quarterly for services rendered in the most recent period, for which the performance obligation has been satisfied.

SBA consulting fees: The Company earns fees for its consulting services related to the origination of SBA loans. Fees are based on a percentage of the dollar amount of the originated loans and are recorded when the performance obligation has been satisfied.

The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers.

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

Recent Developments and Acquisitions

On January 1, 2023, we acquired GrandSouth, a community bank headquartered in Greenville, South Carolina, in an all-stock transaction. The terms of the Merger Agreement provided that each share of common and preferred stock of GrandSouth issued and outstanding immediately prior to the effective time of the acquisition was converted into 0.91 shares of the Company's common stock. As a result, the Company issued 5,032,834 shares of the Company common stock effective January 1, 2023. In addition, GrandSouth common stock options outstanding at the merger effective time were converted to options to acquire 0.91 shares of the Company's common stock resulting in 542,345 options with an average exercise price of approximately $20.14.

The GrandSouth acquisition contributed $1.02 billion in loans and $1.05 billion in deposits, with eight branches in South Carolina being added to the Company's branch network. The acquisition accomplished the Company's strategic initiative to expand its presence in South Carolina, specifically in the the high-growth markets of the state including Greenville, Charleston and Columbia.

Highlights of the results for the quarter and year-to-date period are presented below (refer also to additional discussion in the "Results of Operations" and "Financial Condition" sections following). Comparisons for the financial periods presented are impacted by the GrandSouth acquisition.

Overview and Highlights at and for Three Months Ended June 30, 2023

We earned net income of $29.4 million, or $0.71 diluted EPS, during the three months ended June 30, 2023 compared to net income of $36.6 million, or $1.03 diluted EPS, for the three months ended June 30, 2022. Higher cost of funds was the primary driver to the lower income for the current year as compared to the prior year.

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•Net interest income for the second quarter of 2023 was $87.0 million, an 11.1% increase from the $78.3 million recorded in the second quarter of 2022. The increase in net interest income from the prior year period was driven by higher earning assets related to both the GrandSouth acquisition and organic growth.

•Net interest margin ("NIM") on a tax-equivalent basis decreased in the second quarter of 2023 to 3.08% from 3.18% for the second quarter of 2022 related to the higher cost of funds, partially offset by increases in market interest rates driving higher yields on loans and increased loan accretion.

•For the three months ended June 30, 2023, the Company recorded $3.7 million in provision for credit losses while no provision was recognized for the second quarter of 2022. The amount recorded for the current quarter was driven in part by the loan growth experienced during the quarter, combined with updated economic forecasts projecting some deterioration in the key factors utilized in our CECL model calculation, primarily the commercial real estate index.

•Noninterest income for the three months ended June 30, 2023 decreased $3.0 million, or 17.5%, from the comparable period of 2022 primarily related to lower bankcard revenues and lower other gains.

•Noninterest expense increased $12.2 million, or 24.7%, for the quarter ended June 30, 2023, as compared to the prior year period driven by higher personnel expense, intangible amortization, merger expenses, and increased general operating expenses resulting from the GrandSouth acquisition.

Overview and Highlights at and for Six Months Ended June 30, 2023

We earned net income of $44.6 million, or $1.08 diluted EPS, during the six months ended June 30, 2023 compared to net income of $70.6 million, or $1.98 diluted EPS, for the six months ended June 30, 2022.

•Net interest income for six months ended June 30, 2023 was $179.5 million, a 15.7% increase from the $155.1 million recorded for the comparable period of 2022. The increase in net interest income was driven by higher earning assets related to both the GrandSouth acquisition and organic growth.

•NIM on a tax-equivalent basis was unchanged at 3.19% for both the six months ended June 30, 2023 and 2022 as higher loan yields from market rate increases and improved pricing on new loans, combined with increased loan discount accretion was offset by the higher cost of funds, also driven by increases in market rates and competition for deposits.

•For the six months ended June 30, 2023, the Company recorded $14.9 million in provision for credit losses which was directly related to: (1) a one-time provision of $12.2 million for non-credit deteriorated loans; and (2) a one-time initial provision for unfunded commitments of $1.9 million for loans acquired from GrandSouth. The acquired loan provisions were partially offset by fluctuations in our CECL model calculation for loan balance changes and updated economic forecasts during the period.

•Noninterest income for the six months ended June 30, 2023 decreased $8.7 million, or 23.9%, from the comparable period of 2022 primarily related to lower bankcard revenues and declines in SBA loan sale gains.

•Noninterest expense increased $34.9 million, or 34.6%, for the six months ended June 30, 2023 as compared to the prior year period driven by higher personnel expense, intangible amortization, merger expenses, and increased general operating expenses resulting from the GrandSouth acquisition.

Total assets at June 30, 2023 amounted to $12.0 billion, a 13.3% increase from December 31, 2022, driven primarily by the acquisition of GrandSouth. The primary balance sheet changes are presented below.

•Total loans amounted to $7.9 billion at June 30, 2023, with acquired balances contributing $1.02 billion and organic growth of $212.4 million, for an annualized organic growth rate (exclusive of acquired loans) of 5.5% from December 31, 2022.

•Total deposits were $10.2 billion at June 30, 2023, an increase of $941.0 million from December 31, 2022. Acquired deposits contributed $1.05 billion while organic market growth (excluding wholesale funding) totaled $154.0 million since year end for an annualized growth rate of 3.1%. Wholesale brokered deposits decreased $249.5 million from year end.

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•Credit quality continued to be strong at June 30, 2023, with a NPA to total assets ratio of 0.30% as of June 30, 2023 down from 0.39% for the comparable period of 2022.

•Our liquidity ratio was 17.3% at June 30, 2023 and was in excess of 29.0% when including available off-balance sheet sources.

•We remain well-capitalized by all regulatory standards with a total common equity Tier 1 ratio of 12.75% and total risk-based capital ratio of 15.09%.

Critical Accounting Policies and Estimates

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

The following should be read in conjunction with our significant accounting policies are presented in Note 1 of the 2022 Annual Report on Form 10-K filed with the SEC.

Allowance for Credit Losses on Loans and Unfunded Commitments

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

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

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

We believe that the ACL is adequate to absorb the expected life of loan credit losses on the portfolio of loans as of the balance sheet date. Actual losses incurred may differ materially from our estimates. For example, inflationary pressures and recessionary concerns leading to macroeconomic deterioration of the economy, higher unemployment and declines in real estate and other asset valuations could affect our loss experience and assumptions utilized in our model.

We estimate expected credit losses on unfunded commitments to extend credit over the contractual period in which we are exposed to credit risk on the underlying commitments, unless the obligation is unconditionally cancellable. The allowance for off-balance sheet credit exposures, which is included in "Other liabilities" on the Consolidated Balance Sheets, is adjusted for as an increase or decrease to the provision for unfunded commitments. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The methodology is based on a loss rate approach that starts with the probability of funding based on historical experience. Similar to methodology discussed above

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related to the loans receivable portfolio, adjustments are made to the historical losses for current conditions and reasonable and supportable forecasts.

Additional information on the loan portfolio and ACL can be found in the “Nonperforming Assets” and “Allowance for Credit Losses and Loan Loss Experience” sections below.

Business Combinations and Goodwill

We believe that the accounting for goodwill and other intangible assets also involves a higher degree of judgment than most other significant accounting policies. Pursuant to applicable accounting guidance, we recognize assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the related transaction costs expensed in the period incurred. Specified items such as acquired operating lease assets and liabilities as lessee, employee benefit plans, and income-tax related balances are recognized in accordance with accounting guidance that results in measurements that may differ from fair value. Determining the fair value of assets acquired and liabilities assumed often involves estimates based on internal or third-party valuations which include appraisals, discounted cash flow analysis, or other valuation techniques that may include estimates of attrition, inflation, asset growth rates, discount rates, credit risk, multiples of earnings, or other relevant factors. The determination of fair value may require us to make point-in-time estimates about discount rates, future expected cash flows, market conditions, and other future events that can be volatile in nature and challenging to assess. While we use the best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement.

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

The ACL for PCD loans is recognized within business combination accounting with no initial impact to net income. Changes in estimates of expected credit losses on PCD loans after acquisition are recognized as provision expense (or reversal of provision expense) in subsequent periods as they arise. The ACL for non-PCD loans is recognized as provision expense in the same reporting period as the business combination. Estimated loan losses for acquired loans are determined using methodologies and applying estimates and assumptions that were described previously in the "Allowance for Credit Losses on Loans" foregoing section.

Non-PCD loans acquired are generally estimated at fair value using a discounted cash flow approach with assumptions of discount rate, remaining life, prepayments, probability of default, and loss given default. The actual cash flows on these loans could differ materially from the fair value estimates. The amount we record as the fair values for the loans is generally less than the contractual unpaid principal balance due from the borrowers, with the difference being referred to as the “discount” on the acquired loans. Discounts on acquired non-PCD loans are accreted to interest income over their estimated remaining lives, which may include prepayment estimates in certain circumstances.

Similarly, premiums or discounts on acquired debt are accreted or amortized to interest expense over their remaining lives. Actual accretion or amortization of premiums and discounts from a business acquisition may differ materially from our estimates impacting our operating results.

Goodwill arising from business combinations represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the

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extent that the carrying amount exceeds the asset’s fair value. At each reporting date between annual goodwill impairment tests, we consider potential indicators of impairment. During 2023, there were no triggers warranting interim impairment assessments and for the 2022 annual assessment, we concluded that it was more likely than not that the fair value exceeded its carrying value.

Current Accounting Matters

See Note 1 to the Consolidated Financial Statements for information about recently announced or adopted accounting standards.

RESULTS OF OPERATIONS

Net Interest Income

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

For internal purposes, we evaluate our NIM on a tax-equivalent basis by adding the tax benefit realized from tax-exempt loans and securities to reported interest income then dividing by total average earning assets. We believe that analysis of NIM on a tax-equivalent basis is useful and appropriate because it allows a comparison of net interest income in different periods without taking into account the different mix of taxable versus non-taxable loans and investments that may have existed during those periods.

Net interest income for the three months ended June 30, 2023 amounted to $87.0 million, an increase of $8.7 million, or 11.1%, from the $78.3 million recorded in the second quarter of 2022. The increase was primarily driven by higher average earning assets from both the GrandSouth acquisition and organic growth. Average interest-earning assets for the second quarter of 2023 increased 14.8% from the comparable period of the prior year, with growth primarily in loans. Somewhat offsetting the impact of the higher earning assets was the reduction in our NIM which, on a tax-equivalent basis, decreased from 3.18% for the second quarter of 2022 to 3.08% for the three months ended June 30, 2023.

The following is a reconciliation of reported net interest income to tax-equivalent net interest income and the resulting NIM as reported and on a tax-equivalent basis.

	For the Three Months Ended June 30, 2023
($ in thousands)	2023			2022
Net interest income, as reported	$	86,985		78,270
Tax-equivalent adjustment	699			669
Net interest income, tax-equivalent	$	87,684		78,939
Net interest margin, as reported	3.05		%	3.16	%
Net interest margin, tax-equivalent	3.08		%	3.18	%

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The following table presents an analysis of net interest income for the three months ended June 30, 2023 and 2022:

Average Balances and Net Interest Income Analysis
	Three Months Ended June 30,
	2023						2022
($ in thousands)	Average Volume		Average Rate		Interest Earned or Paid		Average Volume		Average Rate		Interest Earned or Paid
Assets
Loans (1) (2)	$	7,850,522	5.26	%	$	102,963	$	6,149,174	4.24	%	$	65,077
Taxable securities	2,925,060		1.79	%	13,063		3,137,383		1.71	%	13,385
Non-taxable securities	296,747		1.51	%	1,120		299,982		1.48	%	1,104
Short-term investments, primarily interest-bearing cash	350,338		4.60	%	4,015		363,119		0.97	%	881
Total interest-earning assets	11,422,667		4.25	%	121,161		9,949,658		3.24	%	80,447
Cash and due from banks	93,421						125,545
Premises and equipment	152,534						135,553
Other assets	389,714						305,992
Total assets	$	12,058,336					$	10,516,748
Liabilities
Interest-bearing checking	$	1,456,540	0.37	%	$	1,333	$	1,541,768	0.05	%	$	210
Money market deposits	3,250,399		2.23	%	18,053		2,567,138		0.11	%	731
Savings deposits	676,427		0.16	%	269		745,496		0.06	%	106
Other time deposits	791,980		2.64	%	5,216		522,239		0.19	%	242
Time deposits >$250,000	343,054		2.87	%	2,457		296,210		0.40	%	296
Total interest-bearing deposits	6,518,400		1.68	%	27,328		5,672,851		0.11	%	1,585
Borrowings	483,439		5.68	%	6,848		67,418		3.52	%	592
Total interest-bearing liabilities	7,001,839		1.96	%	34,176		5,740,269		0.15	%	2,177
Noninterest-bearing checking	3,662,641						3,664,764
Other liabilities	79,236						20,638
Shareholders’ equity	1,314,620						1,091,077
Total liabilities and shareholders’ equity	$	12,058,336					$	10,516,748
Net yield on interest-earning assets and net interest income			3.05	%	$	86,985			3.16	%	$	78,270
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			3.08	%	$	87,684			3.18	%	$	78,939
Interest rate spread			2.29	%					3.09	%
Average prime rate			8.16	%					3.94	%

(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and deferred loan fee amortization in the amounts of $49,000, and $651,000 for three months ended June 30, 2023 and 2022, respectively.

(2)   Includes accretion of discount on acquired and SBA loans of $3.6 million and $2.3 million for three months ended June 30, 2023 and 2022, respectively.

(3)   Includes tax-equivalent adjustments of $699,000 and $669,000 for three months ended June 30, 2023 and 2022, respectively, to reflect the tax benefit that we receive related to tax-exempt securities and tax-exempt loans, which carry interest rates lower than similar taxable investments/loans due to their tax-exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense.

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Overall, as demonstrated in the table above, higher earning asset volumes, arising from both the GrandSouth acquisition and organic growth, combined with an expansion in NIM, drove the increase in net interest income.

•Market interest rates increased 375 basis points between June 2022 and June 2023 to result in an average prime rate of 8.16% for three months ended June 30, 2023 compared to 3.94% for the prior year period.

•Average loan volumes for the three months ended June 30, 2023 were $1.7 billion higher than the same period in 2022. In addition to higher volumes arising from both the GrandSouth acquisition and organic growth, interest rates on loans increased 102 basis points to 5.26% for the second quarter of 2023, resulting in an increase in loan interest income of $37.9 million.

•Primarily due to higher market rates and increased average balances related in large part to the GrandSouth acquisition, deposit interest expense for the three months ended June 30, 2023 increased $25.7 million compared to the same period in 2022. Average interest-bearing deposit balances increased $845.5 million while rates on those deposits increased 157 basis points as compared to the same period in the prior year.

•The combination of higher rates on borrowings, up 216 basis points in the second quarter of 2023 from the second quarter of 2022 due to increasing market rates, and the increase in volume of borrowings between periods drove the $6.3 million increase in interest expense. Average borrowings increased $416.0 million in the second quarter of 2023 due in large part to the higher levels of short-term borrowings utilized as needed to fund loan growth and manage fluctuations in deposit balances.

•The decrease in NIM was directly related to higher cost of funds, partially offset by higher loan yields from market rate increases and improved pricing on new loans, combined with increased loan discount accretion.

Net interest income for the six months ended June 30, 2023 amounted to $179.5 million, an increase of $24.3 million, or 15.7%, from the $155.1 million recorded in the six months ended June 30, 2022. The increase was driven by higher average earning assets from both the GrandSouth acquisition and organic growth. Our tax-equivalent NIM remained unchanged at 3.19% for the six months ended June 30, 2023 as compared to the same period in 2022 as discussed further below.

The following is a reconciliation of reported net interest income to tax-equivalent net interest income and the resulting NIM as reported and on a tax-equivalent basis.

	For the Six Months Ended June 30, 2023
($ in thousands)	2023			2022
Net interest income, as reported	$	179,471		155,148
Tax-equivalent adjustment	1,399			1,366
Net interest income, tax-equivalent	$	180,870		156,514
Net interest margin, as reported	3.17		%	3.17	%
Net interest margin, tax-equivalent	3.19		%	3.19	%

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The following table presents an analysis of net interest income for the six months ended June 30, 2023 and 2022.

Average Balances and Net Interest Income Analysis
	Six Months Ended June 30,
	2023						2022
($ in thousands)	Average Volume		Average Rate		Interest Earned or Paid		Average Volume		Average Rate		Interest Earned or Paid
Assets
Loans (1) (2)	$	7,789,800	5.24	%	$	202,343	$	6,100,246	4.27	%	$	129,279
Taxable securities	2,973,460		1.80	%	26,479		3,066,772		1.75	%	26,595
Non-taxable securities	297,789		1.52	%	2,250		294,257		1.47	%	2,152
Short-term investments, primarily interest-bearing cash	364,651		4.02	%	7,263		420,671		0.73	%	1,530
Total interest-earning assets	11,425,700		4.21	%	$	238,335	9,881,946		3.26	%	159,556
Cash and due from banks	94,239						120,691
Premises and equipment	151,877						135,768
Other assets	378,546						401,660
Total assets	$	12,050,362					$	10,540,065
Liabilities
Interest bearing checking	$	1,491,401	0.30	%	$	2,199	$	1,558,950	0.06	%	$	434
Money market deposits	3,113,201		1.87	%	28,867		2,586,527		0.12	%	1,584
Savings deposits	702,527		0.11	%	397		733,769		0.06	%	214
Time deposits >$100,000	838,287		2.59	%	10,770		534,300		0.18	%	487
Other time deposits	328,079		2.47	%	4,013		315,027		0.41	%	637
Total interest-bearing deposits	6,473,495		1.44	%	46,246		5,728,573		0.12	%	3,356
Borrowings	461,260		5.52	%	12,618		67,400		3.15	%	1,052
Total interest-bearing liabilities	6,934,755		1.71	%	58,864		5,795,973		0.15	%	4,408
Noninterest bearing checking	3,725,222						3,550,741
Other liabilities	96,228						43,098
Shareholders’ equity	1,294,157						1,150,253
Total liabilities and shareholders’ equity	$	12,050,362					$	10,540,065
Net yield on interest-earning assets and net interest income			3.17	%	$	179,471			3.17	%	$	155,148
Net yield on interest-earning assets and net interest income – tax-equivalent (3)			3.19	%	$	180,870			3.19	%	$	156,514
Interest rate spread			2.50	%					3.11	%
Average prime rate			7.92	%					3.62	%

(1)   Average loans include nonaccruing loans, the effect of which is to lower the average rate shown. Interest earned includes recognized net loan fees, including late fees, prepayment fees, and deferred loan fee amortization (including deferred PPP fees), in the amounts of $406,000, and $2.0 million for six months ended June 30, 2023 and 2022, respectively.

(2) Includes accretion of discount on acquired and SBA loans of $7.2 million and $4.6 million for six months ended June 30, 2023 and 2022, respectively.

(3)   Includes tax-equivalent adjustments of $1.4 million and $1.4 million for six months ended June 30, 2023 and 2022, respectively, to reflect the tax benefit that we receive related to tax-exempt securities and tax-exempt loans, which carry interest rates lower than similar taxable investments/loans due to their tax exempt status. This amount has been computed assuming a 23% tax rate and is reduced by the related nondeductible portion of interest expense

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Overall, as demonstrated in the table above, higher earning asset volumes, arising from both the GrandSouth acquisition and organic growth drove the increase in net interest income.

•Market interest rates increased 375 basis points between June 2022 and June 2023 to result in an average prime rate of 7.92% for six months ended June 30, 2023 compared to 3.62% for the prior year period.

•Average loan volumes for the six months ended June 30, 2023 were $1.7 billion higher than the same period in 2022 due to both the GrandSouth acquisition and organic growth. In addition, interest rates on loans increased 97 basis points to 5.24% for the six months ended June 30, 2023, resulting in an increase in loan interest income of $73.1 million.

•Primarily due to higher market rates and increased average balances related in large part to the GrandSouth acquisition, deposit interest expense for the six months ended June 30, 2023 increased $42.9 million compared to the same period in 2022. Average interest-bearing deposit balances increased $744.9 million while rates on those deposits increased 132 basis points as compared to the same period in the prior year.

•The combination of higher rates on borrowings, up 237 basis points for the six months ended June 30, 2023 as compared to the same period in 2022 due to increasing market rates, and the increase in volume of borrowings between periods drove the $11.6 million increase in interest expense. Average borrowings increased $393.9 million for the six months ended June 30, 2023 as compared to the same period in 2022 due in large part to the higher levels of short-term borrowings utilized as needed to fund loan growth and manage fluctuations in deposit balances.

•NIM remained unchanged between the comparable periods as higher loan yields from market rate increases and improved pricing on new loans, combined with increased loan discount accretion was offset by the higher cost of funds, also driven by increases in market rates and competition for deposits.

Our NIM for all periods benefited from net accretion income, primarily associated with purchase accounting discounts on loans, and premiums/discounts on deposits and borrowings associated with acquisitions. Presented in the table below is the amount of purchase accounting adjustments which impacted net interest income in each time period presented.

	For the Three Months Ended June 30,			For the Six Months Ended June 30,
($ in thousands)	2023		2022	2023	2022
Accretion of loan discount on acquired loans	$	3,159	1,545	6,277	3,216
Accretion of loan discount on retained SBA loans	426		730	874	1,397
Total interest income impact	3,585		2,275	7,151	4,613
(Discount accretion) premium amortization of acquired deposits	(878)		168	(1,897)	402
Discount accretion of acquired borrowings	(212)		(53)	(420)	(126)
Total net interest expense impact	(1,090)		115	(2,317)	276
Total impact on net interest income	$	2,495	2,390	4,834	4,889

The increase in loan discount accretion on acquired loans for the three and six months ended June 30, 2023 as compared to the same period in the prior year was related to the GrandSouth acquisition which added $23.9 million in accretable discount as of the acquisition date. Generally, the level of loan discount accretion will decline each year due to the natural paydowns in acquired loan portfolios. At June 30, 2023 and 2022, unaccreted loan discounts on purchased loans amounted to $29.2 million and $14.0 million, respectively.

In addition to the loan discount accretion recorded on acquired loans, we recorded accretion on the discounts associated with the retained unguaranteed portions of SBA loans sold in the secondary market. The level of SBA loan discount accretion will vary relative to fluctuations in the SBA loan portfolio. At June 30, 2023 and 2022, the unaccreted loan discounts on SBA loans amounted to $3.8 million and $5.4 million, respectively.

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Provision for Credit Losses and Provision for Unfunded Commitments

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

The amount of provision recorded in each period was the amount required such that the total ACL reflected the appropriate balance as determined under CECL. For the three months ended June 30, 2023, we recorded a $3.7 million provision for loan losses while no provision was recognized for the comparable period of 2022. The provision for the current quarter was driven in part by the loan growth experienced during the period, combined with updated economic forecasts projecting some deterioration in the key factors utilized in our CECL model calculation, primarily the commercial real estate index. The six months ended June 30, 2023 included a one-time loan loss provision of $12.2 million recorded to establish an initial ACL for non-PCD loans acquired from GrandSouth in accordance with our CECL model. This was the primary contributor to the provision for the year to date period which totaled $15.2 million.

In addition, a reversal of provision for unfunded commitments of $1.3 million was recorded for the three months ended June 30, 2023 related primarily to a reduction in the amount of available lines of credit outstanding. The six months ended June 30, 2023 included a one-time initial provision for unfunded commitments of $1.9 million required for the GrandSouth acquisition which substantially offset the reversal recognized in the second quarter of 2023. For the same period in 2022, there was a reversal of provision for unfunded commitments of $1.5 million, related primarily to fluctuations in commitment levels combined with updated loss rate factors.

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

Noninterest Income

Our noninterest income amounted to $14.2 million and $17.3 million for the three months ended June 30, 2023 and 2022, respectively, and $27.8 million and $36.5 million for the six months ended June 30, 2023 and 2022, respectively. Included in noninterest income were nonrecurring amounts totaling $0.3 million and $1.6 million in other gains for the three months ended June 30, 2023 and 2022, respectively, and $0.5 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively.

The following table presents the primary components of noninterest income. The drivers of larger fluctuations between periods are discussed below the table.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Service charges on deposit accounts	$	4,114	3,700		8,008		7,241
Other service charges and fees - bankcard interchange income, net	2,368		4,812		4,950		9,523
Other service charges and fees - other	3,282		3,070		6,620		5,364
Fees from presold mortgage loans	557		454		963		1,575
Commissions from sales of financial products	1,413		1,151		2,719		2,096
SBA consulting fees	409		704		930		1,484
SBA loan sale gains	696		841		951		4,102
Bank-owned life insurance ("BOLI") income	1,066		942		2,112		1,918
Core noninterest income	13,905		15,674		27,253		33,303
Other gains, net	330		1,590		518		3,212
Total noninterest income	$	14,235	$	17,264	$	27,771	$	36,515

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Service charges on deposit accounts increased $0.4 million, or 11.2%, for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022, and increased $0.8 million, or 10.6% for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, respectively. The increase was driven by the higher number of new customers and transaction accounts generating fees from both the GrandSouth acquisition and organic growth.

Other service charges and fees - bankcard interchange income, net represents interchange income from debit and credit card transactions, net of associated interchange expense, and decreased $2.4 million, or 50.8%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 and decreased $4.6 million, or 48.0%, for the six months ended June 30, 2023 compared to the same period in 2022. The decrease is a result of the Durbin Amendment limitation on debit card interchange fees becoming applicable to the Company beginning in July 2022.

Other service charges and fees - other includes items such as SBA guarantee servicing fees and related servicing rights amortization, ATM charges, wire transfer fees, safety deposit box rentals, fees from sales of personalized checks, and check cashing fees. The increases in this line item for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 of $0.2 million, or 6.9%, and for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 of $1.3 million, or 23.4%, were due primarily to the GrandSouth acquisition and the resulting growth in the number of accounts and related transaction activity, as well as increases in the Bank's organic deposit base.

Fees from presold mortgage loans amounted to $0.6 million for the three months ended June 30, 2023, an increase of $0.1 million, or 22.7%, from the same time period in 2022. Mortgage fees decreased $0.6 million, or 38.9% for the six months ended June 30, 2023 compared to the prior year period due to the general increase in market interest rates starting in 2022 which have resulted in continued lower volumes of home mortgage refinancing and new originations into 2023.

SBA loan sale gains decreased $0.1 million, or 17.2%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 and $3.2 million, or 76.8%, for the six months ended June 30, 2023 compared to the same period in 2022. The decreases were related to slower loan originations combined with lower premiums available on SBA loan sales given the current market interest rates, resulting in lower volumes of loan sales in 2023.

Other gains, net for the three and six months ended June 30, 2022 consisted primarily of death benefits realized on BOLI policies. There were no large or unusual transactions in the three and six months ended June 30, 2023 giving rise to gains or losses.

Noninterest Expenses

Noninterest expenses totaled $61.6 million and $49.4 million for the three months ended June 30, 2023 and 2022, respectively, and $135.8 million and $100.9 million for the six months ended June 30, 2023 and 2022, respectively. Included in noninterest expenses were nonrecurring merger and acquisition costs totaling $1.3 million and $0.7 million for the three months ended June 30, 2023 and 2022, respectively, and $13.5 million and $4.2 million for the six months ended June 30, 2023 and 2022, respectively. The following table presents the primary components of noninterest expenses:

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	For the Three Months Ended June 30,				For the Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Salaries	$	28,676	23,799		57,997		47,253
Employee benefits	6,165		6,310		12,558		11,888
Total personnel expense	34,841		30,109		70,555		59,141
Occupancy expense	3,547		3,122		7,235		6,506
Equipment related expenses	1,425		1,514		2,804		2,818
Credit card rewards and other bankcard expenses	1,324		970		2,443		2,213
Telephone and data lines	982		855		1,978		1,790
Software costs	2,133		1,288		4,303		2,862
Data processing expense	1,860		1,920		4,272		4,022
Professional fees	1,416		1,307		2,865		2,178
Advertising and marketing expense	1,090		884		2,209		1,795
Non-credit losses	1,550		488		2,415		1,090
Deposit related expenses	720		257		1,434		667
Other operating expenses	7,322		5,286		15,580		9,962
Core noninterest expense	58,210		48,000		118,093		95,044
Merger and acquisition expenses	1,334		737		13,516		4,221
Amortization of intangible assets	2,049		953		4,194		1,970
Foreclosed property losses (gains), net	—		(292)		(35)		(372)
Total noninterest expense	$	61,593	$	49,398	$	135,768	$	100,863

In general, the 24.7% and 34.6% increases for the quarter and year to date period, respectively, in noninterest expenses were driven by by increased salary and benefit expense (up $4.7 million and $11.4 million for the three and six months ended June 30, 2023 as compared to the same periods in the prior year) and other facilities-related costs associated with the acquisition of eight GrandSouth branch locations and related branch and support personnel.

In addition, merger and acquisition expenses of $1.3 million and $13.5 million for the three and six months ended June 30, 2023, respectively, and higher intangible amortization, which increased $1.1 million and $2.2 million for the three and six months ended June 30, 2023 as compared to the same periods in the prior year, respectively, contributed the in the higher noninterest expense in the current year periods.

Also contributing to higher noninterest expense were increases in the three and six months ended June 30, 2023 for data processing, professional fees, software expense, and advertising, as well as FDIC insurance, travel and training (all included in "other operating expenses") related to the GrandSouth acquisition, including the transition of new customers and overlapping pre-conversion costs associated with the core processing system prior to the full system integration late in the quarter. Non-credit losses increased $1.1 million and $1.3 million for the three and six months ended June 30, 2023, respectively, as compared to the same periods in the prior year driven by an increase in check fraud experienced in the current year.

Also included in "other operating expenses" is a one-time charge of $2.4 million for the estimated termination costs associated with the Company's pension plan which we anticipate exiting during the fourth quarter of 2023.

Income Taxes

We recorded income tax expense of $7.9 million and $9.6 million for the three months ended June 30, 2023 and 2022, respectively. Our effective tax rate increased to 21.1% from 20.7% for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and June 30, 2022, we recorded income tax expense of $12.0 million and $18.2 million, respectively. Our effective tax rate increased to 21.3% from 20.5% for the six months ended June 30, 2023 and 2022, respectively. The increase in effective tax rate between both periods was attributable primarily to the merger and acquisition expenses which were non-deductible for tax purposes, thus increasing our federal taxable income in the current period.

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FINANCIAL CONDITION

Total assets at June 30, 2023 amounted to $12.0 billion, a $1.4 billion, or 13.3%, increase from December 31, 2022 due in large part to the GrandSouth acquisition, combined with organic growth during the year.

Total loans at June 30, 2023 amounted to $7.9 billion, a $1.2 billion, or 18.5%, increase from December 31, 2022 related primarily to the GrandSouth acquisition which contributed $1.02 billion to the increase. Organic growth (exclusive of acquired loans) amounted to $212.4 million for the first six months of 2023 or an annualized growth rate of 5.5%. The mix of our loan portfolio remained substantially the same at June 30, 2023 compared to December 31, 2022. The majority of our real estate loans were personal and commercial loans where real estate provides additional security for the loan. Note 4 to the consolidated financial statements presents additional detailed information regarding our mix of loans. We have no notable concentrations in geographies or industries, including in office or hospitality categories. The Company's exposure to non-owner occupied commercial office loans represents approximately 5.7% of the total portfolio and the average size of these loans is $1.3 million. Non-owner occupied office loans are generally in non-metro markets and the top 10 loans in this category represent less than 2% of the total loan portfolio.

The composition of our investment portfolio remained substantially the same as at December 31, 2022, and continues to reflect our investment strategy of maintaining an appropriate level of liquidity while providing a stable source of income. The investment portfolio also provides a balance to interest rate risk and credit risk in other categories of the balance sheet while providing a vehicle for the investment of available funds, furnishing liquidity, and supplying securities to pledge as required collateral for certain deposits. Total investment securities decreased $98.6 million from December 31, 2022 to $2.8 billion at June 30, 2023 due in large part to the utilization of cash flows from amortizing securities to fund loan growth. The unrealized loss on available for sale securities totaled $440.1 million, representing an improvement of $3.9 million during the six months ended June 30, 2023. The Company has the intent and ability to hold investments with unrealized losses until maturity or recovery of the amortized cost as market conditions change. Note 3 to the consolidated financial statements presents additional detailed information regarding our mix of investments and the unrealized losses for each category.

We invest primarily in securities issued by GSEs including FHLMC, FNMA, GNMA, and SBA, each of which guarantees the repayment of the securities. Nearly all of our mortgage-backed securities are issued by GSEs and are traded in liquid secondary markets. The state and local government investments are comprised almost entirely of highly-rated municipal bonds issued by state and local governments throughout the nation. We have no significant concentration of bond holdings from one state or local government entity. We have evaluated the unrealized losses on individual securities at June 30, 2023 and determined them to be of a temporary nature due primarily to interest rate factors and not credit quality concerns. In arriving at this conclusion, we reviewed third-party credit ratings and considered the severity of the impairment.

Total deposits amounted to $10.2 billion at June 30, 2023, an increase of $941.0 million, or 10.2%, from December 31, 2022. Deposits acquired from GrandSouth contributed $1.05 billion while organic market growth (excluding wholesale funding) totaled $154.0 million since year end for an annualized growth rate of 3.1%. Wholesale brokered deposits decreased $249.5 million from year end. We continue to have a diversified and granular deposit base which has remained stable with continued growth in core deposits, primarily noninterest-bearing checking accounts and money market accounts. As of June 30, 2023, the estimated insured deposits totaled $6.5 billion or 63.6% of total deposits. In addition, we had collateralized deposits at that date of $774.8 million such that approximately 71.2% of our total deposits were insured or collateralized at June 30, 2023.

Our deposit mix has remained consistent historically and has not significantly changed with the addition of GrandSouth as presented in the table below. There has been no notable shift in deposits from noninterest-bearing to interest-bearing during 2023 to date other than from the acquired deposits driving a moderate change in mix.

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	June 30, 2023				December 31, 2022
($ in thousands)	Amount		Percentage		Amount	Percentage
Noninterest-bearing checking accounts	$	3,639,930	36	%	3,566,003	39	%
Interest-bearing checking accounts	1,454,489		14	%	1,514,166	16	%
Money market accounts	3,411,072		34	%	2,416,146	26	%
Savings accounts	658,473		6	%	728,641	8	%
Other time deposits	638,751		6	%	464,343	5	%
Time deposits >$250,000	353,473		4	%	276,319	3	%
Total market deposits	10,156,188		100	%	8,965,618	97	%
Brokered deposits	12,381		—	%	261,911	3	%
Total deposits	$	10,168,569	100	%	9,227,529	100	%

Nonperforming Assets

NPAs are defined as nonaccrual loans, modifications to borrowers in financial distress, loans past due 90 or more days and still accruing interest, foreclosed real estate, and prior to the adoption of ASU 2022-02, accruing TDRs. NPAs are summarized as follows:

($ in thousands)	June 30, 2023			December 31, 2022
Nonperforming assets
Nonaccrual loans	$	29,876		28,514
Modifications to borrowers in financial distress	4,862			—
TDRs – accruing	—			9,121
Total nonperforming loans	34,738			37,635
Foreclosed real estate	1,077			658
Total nonperforming assets	$	35,815		38,293
Asset Quality Ratios
Nonaccrual loans to total loans	0.38		%	0.43	%
Nonperforming loans to total loans	0.44		%	0.56	%
Nonperforming assets to total loans and foreclosed properties	0.45		%	0.57	%
Nonperforming assets to total assets	0.30		%	0.36	%
Allowance for credit losses to nonaccrual loans	365.61		%	319.03	%
Allowance for credit losses to nonperforming loans	314.44		%	241.71	%

As shown in the table above, NPAs decreased from December 31, 2022 to June 30, 2023. The decline was due in part to the Company's adoption of ASU 2022-02 which eliminated the accounting for TDRs and replaced it with disclosures of loan modifications for borrowers experiencing financial difficulty. At June 30, 2023, total nonaccrual loans amounted to $29.9 million, compared to $28.5 million at December 31, 2022.

"Commercial and industrial" is the largest category of nonaccrual loans, at $11.3 million, or 37.8% of total nonaccrual loans, followed by "Commercial real estate - owner occupied" at $11.3 million, or 37.7% of total nonaccrual loans. Included in those categories are nonaccrual SBA loans totaling $15.4 million at June 30, 2023, or 51.5%, of total nonaccrual loans which have $5.7 million in guarantees from the SBA.

As reflected in Note 4 to the accompanying consolidated financial statements, total classified loans increased 14.6% to $55.4 million at June 30, 2023 compared to $48.3 million at December 31, 2022. Special mention loans increased 8.5% from $39.0 million at December 31, 2022 to $42.3 million at June 30, 2023. The majority of the increase was attributable to commercial real estate loans acquired from GrandSouth.

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Allowance for Credit Losses and Loan Loss Experience

Our ACL is based on the total amount of loan losses that are expected over the remaining life of the loan portfolio. Our estimate of credit losses on loans is determined using a complex model that relies on reasonable and supportable forecasts and historical loss information to determine the balance of the ACL and resulting provision for credit losses. The ACL is measured on a collective pool basis when similar risk characteristics exist based primarily on discounted cash flows computed for each loan in a pool based on its individual characteristics. When we determine that foreclosure is probable or when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. We have reviewed the collateral for our nonperforming assets, including nonaccrual loans, and have included this review among the factors considered in the evaluation of the ACL.

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

Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Our ACL increased $18.3 million at June 30, 2023, as compared to year end, to a total of $109.2 million. The increase was driven by the acquisition of GrandSouth as discussed previously in the "Provision for Credit Losses" section above and in Note 4 to the accompanying consolidated financial statements. Purchase accounting adjustments included a "Day 1" ACL of $5.6 million recorded for PCD loans and an initial "Day 2" provision for loan losses of $12.2 million related to non-PCD loans in the GrandSouth portfolio. The balance of the change in the ACL was primarily a result of loan growth experienced during the period, combined with updated economic forecasts projecting some deterioration in the key factors utilized in our CECL model calculation, primarily the commercial real estate index.

For the periods indicated, the following table summarizes our balances of loans outstanding, average loans outstanding, ACL, charge-offs and recoveries, and key ratios:

($ in thousands)	Six Months Ended June 30, 2023			Twelve Months Ended December 31, 2022		Six Months Ended June 30, 2022
Loans outstanding at end of period	$	7,897,629		6,665,145		6,243,170
Average amount of loans outstanding	7,789,800			6,293,280		6,100,246
Allowance for credit losses, at period end	109,230			90,967		82,181
Total charge-offs	(4,372)			(4,465)		(2,803)
Total recoveries	1,874			4,043		2,695
Net charge-offs	$	(2,498)		(422)		(108)
Ratios:
Net charge-offs as a percent of average loans (annualized)	0.06		%	0.01	%	—	%
Allowance for credit losses as a percent of loans at end of period	1.38		%	1.36	%	1.32	%
Recoveries of loans previously charged-off as a percent of loans charged-off	42.86		%	90.55	%	96.15	%

Allowance for Unfunded Commitments

In addition to the ACL on loans, we maintain an allowance for lending-related commitments such as unfunded loan commitments. We estimate expected credit losses associated with these commitments over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for unfunded commitments expense. The estimate includes consideration of the

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likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

For the six months ended June 30, 2023, we recorded a reversal of provision for unfunded commitments of $0.3 million, which includes an initial provision of $1.9 million for the acquisition of GrandSouth and a provision reversal of $2.2 million related to fluctuations in the levels and mix of outstanding loan commitments. For the comparable period of 2022, we recognized a reversal of provision for unfunded commitments of $1.5 million related to lower levels of unfunded commitments for the period. The allowance for unfunded commitments of $13.0 million and $13.3 million at June 30, 2023 and December 31, 2022, respectively, are classified on the balance sheet within "Other liabilities."

We believe the ACL is adequate at each period end presented. It must be emphasized, however, that the determination of the allowances using our procedures and methods rests upon various judgments and assumptions about economic conditions and other factors affecting loans. No assurance can be given that we will not in any particular period sustain loan losses that are sizable in relation to the amounts reserved or that subsequent evaluations of the loan portfolio, in light of conditions and factors then prevailing, will not require significant changes in the ACL or future charges to earnings. See “Critical Accounting Policies – Allowance for Credit Losses on Loans and Unfunded Commitments” in Note 1 to the 2022 Annual Report on Form 10-K filed with the SEC for more information.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review our ACL and the value of our collateral-dependent loans. Such agencies may require us to recognize adjustments to the ACL based on their judgments about information available at the time of their examinations.

Liquidity, Commitments, and Contingencies

Our liquidity is determined by our ability to convert assets to cash or acquire alternative sources of funds to meet the needs of our customers who are withdrawing or borrowing funds, and to maintain required reserve levels, pay expenses and operate the Company on an ongoing basis. Our primary liquidity sources are net income from operations, cash and due from banks, federal funds sold and other short-term investments. Our securities portfolio has a high percentage of amortizing mortgage-backed securities generating monthly cash flows. In addition, the portfolio is comprised almost entirely of readily marketable securities, which could also be sold to provide cash. We also maintain available lines of credit from the FHLB and the Federal Reserve, as well as federal funds lines from several correspondent banks which are summarized below.

At June 30, 2023, the Company had three sources of readily available borrowing capacity:

•An approximately $928.4 million line of credit with the FHLB (of which $381.8 million and $221.8 million were outstanding at June 30, 2023 and December 31, 2022, respectively);

•An approximately $835.5 million line of credit through the Federal Reserve's discount window and its Bank Term Funding Program (of which none was outstanding at June 30, 2023 or December 31, 2022); and,

•Federal funds lines with several correspondent banks totaling $265.0 million (of which none were outstanding at June 30, 2023 or December 31, 2022).

Our overall on-balance sheet liquidity ratio was 17.3% at June 30, 2023. compared to 26.0% at December 31, 2022. We define our liquidity ratio as net liquid assets (cash, unpledged securities and other marketable assets) as a percentage of our net liabilities (unpledged deposits and borrowings). The decrease in on-balance sheet liquidity is primarily related to the higher level of investment securities pledged during the year to date to increase our borrowing availability. Our total liquidity ratio, including the $1.6 billion in available lines of credit at quarter end was 29.0% as of June 30, 2023. The increase in available lines during 2023 was a result of additional loan and security collateral being transferred to the FHLB and the Federal Reserve to enhance the levels of off-balance sheet liquidity availability to meet demands, as necessary. We believe our liquidity sources, including unused lines of credit, are at an acceptable level and remain adequate to meet our operating needs in the foreseeable future.

The amount and timing of our contractual obligations and commercial commitments have not changed materially since December 31, 2022, the detail of which is presented in the Contractual Obligations and Other Commercial Commitments table of our 2022 Annual Report on Form 10-K. In addition, we are not involved in any legal proceedings that, in our opinion, could have a material effect on our consolidated financial position.

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Off-Balance Sheet Arrangements and Derivative Financial Instruments

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

Derivative financial instruments include futures, forwards, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through June 30, 2023.

Capital Resources

The Company is regulated by the Federal Reserve and is subject to the securities registration and public reporting regulations of the SEC. Our banking subsidiary is also regulated by the Federal Reserve and the North Carolina Office of the Commissioner of Banks ("NCCOB"). We must comply with regulatory capital requirements established by the Federal Reserve and the NCCOB. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our financial statements. We are not aware of any recommendations of regulatory authorities or otherwise which, if they were to be implemented, would have a material effect on our liquidity, capital resources, or operations.

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

The Federal Reserve's capital standards require us to maintain minimum ratios of “common equity tier 1” capital to total risk-weighted assets, “tier 1” capital to total risk-weighted assets, and total capital to risk-weighted assets of 4.50%, 6.00% and 8.00%, respectively. Common equity tier 1 capital is comprised of common stock and related surplus, plus retained earnings, and is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. Tier 1 capital is comprised of common equity tier 1 capital plus "additional tier 1 capital", which includes non-cumulative perpetual preferred stock and trust preferred securities. Total risk-based capital is comprised of tier 1 capital plus qualifying subordinated debentures, and certain adjustments, the largest of which is our ACL and reserve for unfunded commitments. The Company has elected to exclude AOCI related primarily to available for sale securities from common equity tier 1 capital. Risk-weighted assets refer to our on- and off-balance sheet exposures, adjusted for their related risk levels using formulas set forth in Federal Reserve regulations.

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

At June 30, 2023, our capital ratios exceeded the regulatory minimum ratios discussed above. The decrease in tier 1 capital ratios at June 30, 2023 as compared to year end is related primarily to the GrandSouth acquisition and organic asset growth. The following table presents the capital ratios for the Company and the regulatory minimums discussed above for the periods indicated:

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	June 30, 2023		December 31, 2022
Risk-based capital ratios:
Common equity Tier 1 to Tier 1 risk weighted assets	12.75	%	13.02	%
Minimum required Common Equity Tier 1 capital	7.00	%	7.00	%
Tier I capital to Tier 1 risk weighted assets	13.54	%	13.83	%
Minimum required Tier 1 capital	8.50	%	8.50	%
Total risk-based capital to Tier II risk weighted assets	15.09	%	15.09	%
Minimum required total risk-based capital	10.50	%	10.50	%
Leverage capital ratio:
Tier 1 capital to quarterly average total assets	10.47	%	10.51	%
Minimum required Tier 1 leverage capital	4.00	%	4.00	%

The Bank is also subject to capital requirements that do not vary materially from the Company’s capital ratios presented above. At June 30, 2023, the Bank exceeded the minimum ratios established by the regulatory authorities.

In addition to the regulatory capital requirements, we monitor the Company's tangible common equity ratio which is a non-GAAP measurement calculated as total capital less intangible assets, as a percent of total assets net of intangible assets. AOCI is included in the Company’s tangible common equity to tangible assets ratio which was 6.79% at June 30, 2023, an increase of 40 basis points from December 31, 2022 due to higher earnings and improvement the level of AOCI.

Stock Repurchase Plans

During the quarter ended June 30, 2023, the Company did not maintain, adopt, modify or terminate a stock repurchase plan operated under the provisions of Rules 10b-18 or Rule 10b5-1(c) of the SEC or otherwise.

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, exchange rates, and equity prices. The Company’s market risk is composed primarily of interest rate risk inherent in the normal course of lending and deposit-taking activities. We are also exposed to market risk in our investing activities. We do not have any trading assets or activities.

Interest Rate Risk

Net interest income is our most significant component of earnings and we consider interest rate risk to be our most significant market risk. Our goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a rising or declining interest rate environment. Profitability is affected by fluctuations in interest rates. A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates of the underlying assets and liabilities do not change at the same speed, to the same extent or on the same basis.

Interest rate risk is monitored through the use of three complementary modeling tools: static gap analysis, earnings simulation modeling, and economic value simulation (net present value estimation). Each of these models measures changes in a variety of interest rate scenarios. While each of the interest rate risk models has limitations, taken together they represent a reasonably comprehensive view of the magnitude of our interest rate risk, the level of risk through time, and the amount of exposure to changes in certain interest rate relationships. Static gap, which measures aggregate repricing values, is less utilized because it only measures the magnitude of the timing differences and does not address repricing lags, market influences, or management actions. Earnings simulation and economic value models, which more effectively measure the cash flow and optionality impacts, are utilized by management on a regular basis and are discussed further below. From the various model results and our

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expectations regarding future interest rate movements, the national, regional and local economies, and other financial and business risk factors, we quantify the overall magnitude of interest sensitivity risk and then determine appropriate strategies and practices governing asset growth and pricing, funding sources and pricing, and off-balance sheet commitments.

Earnings Simulation Analysis

We use net interest income simulations which measure the short-term earnings exposure from changes in market rates of interest. The model calculates an earnings estimate based on current and projected balances and rates, incorporating our current financial position with assumptions regarding future business to calculate net interest income under varying hypothetical rate scenarios. This method is subject to the accuracy of the assumptions that underlie the process, but it provides a better analysis of the sensitivity of earnings to changes in interest rates than other analyses, such as the static gap analysis.

Assumptions used in the model are derived from historical trends and management’s outlook. The model assumes a static balance sheet with cash flows reinvested in similar instruments to maintain the balance sheet levels and current composition. Actual cash flows and repricing characteristics for our balance sheet instruments are input to the model. The model incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities. Because these assumptions are inherently uncertain, actual results may differ from simulated results.

Different interest rate scenarios and yield curves are used to measure the sensitivity of earnings to changing interest rates in both a "shocked" instantaneous move and a "ramped" move of rates. Interest rates on different asset and liability accounts move differently when the prime rate changes and such assumptions are reflected in the different rate scenarios. The model does not take into account any future actions that management may take to mitigate the impact of interest rate changes, and it is our strategy to proactively change the volume and mix of our balance sheet in order to mitigate our interest rate risk.

There has been no significant change in the Company's estimated net interest income sensitivity position from December 31, 2022. From a net interest income perspective, the Company has been fairly neutral historically with no significant change in the short-term (within a 12-month period) and within the lower ranges (+ - 100-200 basis points) of interest rate changes. Starting in 2022, the Company's sensitivity position shifted somewhat such that, in the short-term it is projected that net interest income will likely be essentially flat or fall in both a rising and falling rate environment. This position is due in part to the changing market characteristics of certain loan and deposit products as well as to the shift in the yield curve. The rapid rate increases in 2022 resulted in a steepening of the yield curve on the short end (within one year), while the longer end of the curve has inverted between one and 10 years, meaning that the yield on short-term instruments (less than one year) are higher than longer-term instruments (10 years). A flat or inverted interest rate curve is an unfavorable interest rate environment for many financial institutions, including the Bank, as short-term interest rates generally drive our deposit pricing and longer-term interest rates generally drive loan pricing. When these rates converge or invert, the profit spread we realize between loan yields and deposit rates narrows, which pressures our NIM.

With regard to rising rates, with an immediate increase or shock in market rates over the short-term (12-month horizon), we would expect to realize a decline in net interest income, although not to the extent projected in a declining rate environment. This is due in part to the composition of our loan portfolio which is comprised of 20% variable rate loans which could immediately reprice, thus limiting the magnitude of the impact of rate increases given that the majority of our portfolio is at fixed rates. In addition, the model includes an assumption of a quick repricing up of the funding base in a rising rate environment, and our recent shift to higher-cost brokered deposits and short-term borrowings in our funding mix has lead to a narrowing of the interest rate spread in the projection. As previously noted, these assumptions are inherently uncertain, and actual results may differ from simulated results. While we believe rates may increase again moderately in 2023, the consensus is that the market rates may begin to stabilize and there is a possibility that the Federal Reserve may start to reduce rates in 2024. We would expect net interest income to decline somewhat in a decreasing interest rate environment, as interest-earning assets reprice to lower rates and interest-bearing deposits repricing may lag given continued market competition for deposits.

Economic Value Simulation

Economic value simulation is used to calculate the estimated fair value of assets and liabilities over different interest rate environments. Economic values are calculated based on discounted cash flow analysis. The net economic

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value of equity is the economic value of all assets minus the economic value of all liabilities. The change in net economic value over different rate environments is an indication of the longer-term earnings capability of the balance sheet. The same assumptions are generally used in the economic value simulation as in the earnings simulation. The economic value simulation uses instantaneous rate shocks to the balance sheet.

As of December 31, 2022, the Company’s economic value of equity ("EVE") was generally liability sensitive in a rising interest rate environment and there has been no significant change in our EVE position from year end. The increase in EVE exposure to rising rates which occurred starting in 2022 was primarily due to the composition of the consolidated balance sheets combined with the pricing characteristics and assumptions of certain deposits. Specifically, starting in 2022, non-maturity deposits, generally with lower betas, have decreased and were replaced with short-term FHLB advances and short-term brokered deposits.

Additional discussion concerning our exposure to interest rate risk is presented in Item 7A of the 2022 Annual Report on Form 10-K filed with the SEC.

Inflation

Our financial statements have been prepared in accordance with GAAP, which requires the financial position and operating results to be measured principally in terms of historic dollars without considering the change in the relative purchasing power of money over time due to inflation.

Nearly all of the Company’s assets and liabilities are monetary in nature, and as such, changes in interest rates (as discussed above) generally affect the financial condition of the Company to a greater degree than changes in the rate of inflation. Although interest rates are influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate. Inflation affects the Company’s results of operations mainly through increased operating costs, and the impact of inflation on banks in general is normally not as significant as its influence on those businesses that have large investments in plant and inventories. We review pricing of our products and services, as well as our controllable operating and labor costs in light of current and expected costs due to inflation, to mitigate the inflationary impact on financial performance to the extent possible.

Awards Made To Named Executive Officers

During the fiscal year ended December 31, 2022, the Company did not award an option or other right to purchase or acquire its common shares during any period beginning four business days before the filing of a periodic report on Form 10-Q or the filing or furnishing of a report on Form 8-K that disclosed material nonpublic information and ending one business day after the filing or furnishing of such a report to any the Company’s “named executive officers” (as such persons are specified in the Company’s Proxy Statements for its 2022 or 2023 Annual Meeting of Shareholders).

Trading Arrangements of Section 16 Reporting Persons.

During the quarter ended June 30, 2023, no person who is required to file reports pursuant to Section 16(a) of the Securities and Exchange Act of 1934, as amended, with respect to holdings of, and transactions in, the Company’s common shares (i.e. directors and certain officers of the Company) maintained, adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1(c) arrangement”, as those terms are defined in Section 229.408 of the regulations of the SEC.

Item 4 – Controls and Procedures

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

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subsequent to, the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1 – Legal Proceedings

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

Item 1A – Risk Factors

Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as cautionary statements contained in this Form 10-Q, including those under the caption “Forward-Looking Statements” set forth in the forepart of this Form 10-Q, risks and matters described elsewhere in this Form 10-Q and in our other filings with the SEC. There are no material changes from the risk factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

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Item 6 - Exhibits

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

2.a	Merger Agreement between First Bancorp and GrandSouth Bancorporation dated June 21, 2022 was filed as Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 21, 2022, and is incorporated herein by reference.
3.a	Articles of Incorporation of the Company and amendments thereto were filed as Exhibits 3.a.i through 3.a.v to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2002, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibits 3.1 and 3.2 to the Company’s Current Report on Form 8-K filed on January 13, 2009, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1.b to the Company’s Registration Statement on Form S-3D filed on June 29, 2010 (Commission File No. 333-167856), and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 6, 2011, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 26, 2012, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed June 14, 2022, and are incorporated herein by reference.
3.b	Amended and Restated Bylaws of the Company were filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on February 9, 2018, and are incorporated herein by reference.
4.a	Form of Common Stock Certificate was filed as Exhibit 4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1999, and is incorporated herein by reference.
31.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.

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

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SIGNATURES

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

	FIRST BANCORP
August 8, 2023	BY:/s/  Richard H. Moore
	Richard H. Moore Chief Executive Officer (Principal Executive Officer), and Director
August 8, 2023	BY:/s/  Elizabeth B. Bostian
	Elizabeth B. Bostian Executive Vice President and Chief Financial Officer
August 8, 2023	BY:/s/  Blaise B. Buczkowski
	Blaise B, Buczkowski Executive Vice President and Chief Accounting Officer

Page 65

EX-31.1

Exhibit 31.1

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

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

I, Richard H. Moore, certify that:

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

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

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

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

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

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

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

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

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

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

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

August 8, 2023	/s/ Richard H. Moore
	Richard H. Moore
	Chief Executive Officer

EX-31.2

Exhibit 31.2

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

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

I, Elizabeth B. Bostian, certify that:

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

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

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

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

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

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

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

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

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

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

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

August 8, 2023	/s/ Elizabeth B. Bostian
	Elizabeth B. Bostian
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Chief Executive Officer

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

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of First Bancorp (the "Company") on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard H. Moore, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

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

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

/s/ Richard H. Moore

Richard H. Moore

Chief Executive Officer

August 8, 2023

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

EX-32.2

Exhibit 32.2

Chief Financial Officer

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

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of First Bancorp (the "Company") on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Elizabeth B. Bostian, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

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

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

/s/ Elizabeth B. Bostian

Elizabeth B. Bostian

Chief Financial Officer

August 8, 2023

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

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2023
Entity File Number	0-15572
Entity Registrant Name	FIRST BANCORP
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-1421916
Entity Address, Address Line One	300 SW Broad St.,
Entity Address, City or Town	Southern Pines
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28387
City Area Code	(910)
Local Phone Number	246-2500
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	FBNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		41,083,178
Entity Central Index Key	0000811589
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks, noninterest-bearing	$ 101,215	$ 101,133
Due from banks, interest-bearing	259,460	169,185
Total cash and cash equivalents	360,675	270,318
Securities available for sale	2,219,786	2,314,493
Securities held to maturity (fair values of $441,881 and $432,528)	537,821	541,700
Presold mortgages in process of settlement at fair value	4,953	1,282
Loans	7,897,629	6,665,145
Allowance for credit losses on loans	(109,230)	(90,967)
Net loans	7,788,399	6,574,178
Premises and equipment	152,443	134,187
Operating right-of-use lease assets	18,375	18,733
Accrued interest receivable	33,446	29,710
Goodwill	478,750	364,263
Other intangible assets	37,097	12,675
Bank-owned life insurance	181,659	164,592
Other assets	219,594	198,918
Total assets	12,032,998	10,625,049
LIABILITIES
Noninterest-bearing checking accounts	3,639,930	3,566,003
Interest-bearing deposits	6,528,639	5,661,526
Total deposits	10,168,569	9,227,529
Borrowings	481,658	287,507
Accrued interest payable	4,845	2,738
Operating lease liabilities	19,109	19,391
Other liabilities	61,175	56,288
Total liabilities	10,735,356	9,593,453
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Preferred stock, no par value per share. Authorized: 5,000,000 shares, Issued & outstanding: none and none	0	0
Common stock, no par value per share. Authorized: 40,000,000 shares, Issued & outstanding: 28,489,474 and 28,579,335 shares	960,851	725,153
Retained earnings	674,933	648,418
Stock in rabbi trust assumed in acquisition	(1,365)	(1,585)
Rabbi trust obligation	1,365	1,585
Accumulated other comprehensive loss	(338,142)	(341,975)
Total shareholders’ equity	1,297,642	1,031,596
Total liabilities and shareholders’ equity	$ 12,032,998	$ 10,625,049

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Securities held to maturity fair values	$ 441,881	$ 432,528
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	41,082,678	35,704,154
Common stock, shares outstanding (in shares)	41,082,678	35,704,154

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST INCOME
Interest and fees on loans	$ 102,963	$ 65,077	$ 202,343	$ 129,279
Interest on investment securities:
Taxable interest income	13,063	13,385	26,479	26,595
Tax-exempt interest income	1,120	1,104	2,250	2,152
Other, principally overnight investments	4,015	881	7,263	1,530
Total interest income	121,161	80,447	238,335	159,556
INTEREST EXPENSE
Interest on deposits	27,328	1,585	46,246	3,356
Interest on borrowings	6,848	592	12,618	1,052
Total interest expense	34,176	2,177	58,864	4,408
Net interest income	86,985	78,270	179,471	155,148
Provision for credit losses	3,700	0	15,151	3,500
Reversal of provision for unfunded commitments	(1,339)	0	(288)	(1,500)
Total provision for credit losses	2,361	0	14,863	2,000
Net interest income after provision for credit losses	84,624	78,270	164,608	153,148
NONINTEREST INCOME
Service charges on deposit accounts	4,114	3,700	8,008	7,241
Other service charges and fees	5,650	7,882	11,570	14,887
Fees from presold mortgage loans	557	454	963	1,575
Commissions from sales of financial products	1,413	1,151	2,719	2,096
SBA consulting fees	409	704	930	1,484
SBA loan sale gains	696	841	951	4,102
Bank-owned life insurance income	1,066	942	2,112	1,918
Other gains, net	330	1,590	518	3,212
Total noninterest income	14,235	17,264	27,771	36,515
NONINTEREST EXPENSE
Salaries expense	28,676	23,799	57,997	47,253
Employee benefits expense	6,165	6,310	12,558	11,888
Total personnel expense	34,841	30,109	70,555	59,141
Occupancy expense	3,547	3,122	7,235	6,506
Equipment related expenses	1,425	1,514	2,804	2,818
Merger and acquisition expenses	1,334	737	13,516	4,221
Intangibles amortization expense	2,049	953	4,194	1,970
Other operating expenses	18,397	12,963	37,464	26,207
Total noninterest expenses	61,593	49,398	135,768	100,863
Income before income taxes	37,266	46,136	56,611	88,800
Income tax expense	7,863	9,551	12,047	18,246
Net income	$ 29,403	$ 36,585	$ 44,564	$ 70,554
Earnings per common share:
Basic (in dollars per share)	$ 0.72	$ 1.03	$ 1.09	$ 1.98
Diluted (in dollars per share)	0.71	1.03	1.08	1.98
Dividends declared per common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.44	$ 0.44
Weighted average common shares outstanding:
Basic (in shares)	40,721,840	35,474,664	40,665,172	35,476,902
Diluted (in shares)	41,129,100	35,642,471	41,123,869	35,641,728

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 29,403	$ 36,585	$ 44,564	$ 70,554
Unrealized (losses) gains on securities available for sale:
Unrealized (losses) gains arising during the period	(31,415)	(109,623)	3,918	(291,418)
Tax benefit (expense)	7,273	25,192	(152)	66,968
Postretirement Plans:
Amortization of unrecognized net actuarial loss	44	44	88	88
Tax benefit	(10)	(10)	(21)	(20)
Other comprehensive (loss) income	(24,108)	(84,397)	3,833	(224,382)
Comprehensive income (loss)	$ 5,295	$ (47,812)	$ 48,397	$ (153,828)

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Stock in Rabbi Trust Assumed in Acquisition	Rabbi Trust Obligation	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021		35,629,000
Beginning balance at Dec. 31, 2021	$ 1,230,575	$ 722,671	$ 532,874	$ (1,803)	$ 1,803	$ (24,970)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	70,554		70,554
Cash dividends declared	(15,689)		(15,689)
Change in Rabbi Trust Obligation	0			230	(230)
Stock withheld for payment of taxes (in shares)		(17,000)
Stock withheld for payment of taxes	(603)	$ (603)
Stock-based compensation (in shares)		72,000
Stock-based compensation	1,888	$ 1,888
Other comprehensive loss	(224,382)					(224,382)
Ending balance (in shares) at Jun. 30, 2022		35,684,000
Ending balance at Jun. 30, 2022	1,062,343	$ 723,956	587,739	(1,573)	1,573	(249,352)
Beginning balance (in shares) at Mar. 31, 2022		35,640,000
Beginning balance at Mar. 31, 2022	1,117,490	$ 723,441	559,004	(1,814)	1,814	(164,955)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,585		36,585
Cash dividends declared	(7,850)		(7,850)
Change in Rabbi Trust Obligation	0			241	(241)
Stock withheld for payment of taxes (in shares)		(14,000)
Stock withheld for payment of taxes	(486)	$ (486)
Stock-based compensation (in shares)		58,000
Stock-based compensation	1,001	$ 1,001
Other comprehensive loss	(84,397)					(84,397)
Ending balance (in shares) at Jun. 30, 2022		35,684,000
Ending balance at Jun. 30, 2022	$ 1,062,343	$ 723,956	587,739	(1,573)	1,573	(249,352)
Beginning balance (in shares) at Dec. 31, 2022	35,704,154	35,704,000
Beginning balance at Dec. 31, 2022	$ 1,031,596	$ 725,153	648,418	(1,585)	1,585	(341,975)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,564		44,564
Cash dividends declared	(18,049)		(18,049)
Change in Rabbi Trust Obligation	0			220	(220)
Equity issued related to acquisition (in shares)		5,033,000
Equity issued pursuant to acquisition	$ 229,489	$ 229,489
Stock options exercised (in shares)	192,178	193,000
Stock options exercised	$ 3,703	$ 3,703
Stock withheld for payment of taxes (in shares)		(6,000)
Stock withheld for payment of taxes	(186)	$ (186)
Stock-based compensation (in shares)		159,000
Stock-based compensation	2,692	$ 2,692
Other comprehensive loss	$ 3,833					3,833
Ending balance (in shares) at Jun. 30, 2023	41,082,678	41,083,000
Ending balance at Jun. 30, 2023	$ 1,297,642	$ 960,851	674,933	(1,365)	1,365	(338,142)
Beginning balance (in shares) at Mar. 31, 2023		40,987,000
Beginning balance at Mar. 31, 2023	1,299,961	$ 959,422	654,573	(1,608)	1,608	(314,034)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,403		29,403
Cash dividends declared	(9,043)		(9,043)
Change in Rabbi Trust Obligation	0			243	(243)
Stock options exercised (in shares)		23,000
Stock options exercised		$ 488
Stock withheld for payment of taxes (in shares)		(6,000)
Stock withheld for payment of taxes	(186)	$ (186)
Stock-based compensation (in shares)		79,000
Stock-based compensation	1,127	$ 1,127
Other comprehensive loss	$ (24,108)					(24,108)
Ending balance (in shares) at Jun. 30, 2023	41,082,678	41,083,000
Ending balance at Jun. 30, 2023	$ 1,297,642	$ 960,851	$ 674,933	$ (1,365)	$ 1,365	$ (338,142)

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.44	$ 0.44

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities
Net income	$ 44,564	$ 70,554
Reconciliation of net income to net cash provided by operating activities:
Provision for credit losses and unfunded commitments, net	14,863	2,000
Net security premium amortization	4,731	6,579
(Decrease) increase in net deferred tax asset	(2,324)	26,341
Loan discount accretion	(7,151)	(3,216)
Other purchase accounting amortization and accretion, net	2,317	(276)
Foreclosed property net gains	(35)	(372)
Other gains, net	(561)	(3,212)
Bank-owned life insurance income	(2,112)	(1,918)
Decrease in net deferred loan fees	(590)	(901)
Depreciation of premises and equipment	3,778	3,436
Amortization of operating lease right-of-use assets	1,090	1,012
Repayments of lease obligations	(1,014)	(912)
Stock-based compensation expense	2,245	1,548
Amortization of intangible assets	4,194	1,970
Amortization and impairment of SBA servicing assets	494	1,531
Fees/gains from sale of presold mortgages and SBA loans	(1,914)	(5,677)
Origination of presold mortgage loans in process of settlement	(44,954)	(78,141)
Proceeds from sales of presold mortgage loans in process of settlement	42,316	94,052
Origination of SBA loans for sale	(19,163)	(52,701)
Proceeds from sales of SBA and other loans	15,053	101,801
Increase (decrease) in accrued interest receivable	2,001	(604)
Decrease (increase) in other assets	4,048	(24,857)
Increase in accrued interest payable	1,725	41
Increase (decrease) in other liabilities	1,553	(7,561)
Net cash provided by operating activities	65,154	130,517
Cash Flows From Investing Activities
Purchases of securities available for sale	0	(354,765)
Purchases of securities held to maturity	0	(39,004)
Proceeds from maturities/issuer calls of securities available for sale	96,686	156,874
Proceeds from maturities/issuer calls of securities held to maturity	1,587	4,102
Proceeds from sales of securities available for sale	111,862	0
Purchases of Federal Reserve and FHLB stock, net	(15,285)	(7,838)
Proceeds from bank owned life insurance death benefits	137	5,827
Net increase in loans	(226,193)	(143,223)
Proceeds from sales of foreclosed properties	192	2,904
Purchases of premises and equipment	(1,854)	(2,702)
Proceeds from sales of premises and equipment	45	359
Net cash received in acquisition activities	22,610	0
Net cash used by investing activities	(10,213)	(377,466)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(106,165)	235,521
Net increase in short-term borrowings	154,973	0
Payments on long-term borrowings	(42)	(67)
Cash dividends paid – common stock	(16,867)	(14,961)
Proceeds from stock option exercises	3,703	0
Payment of taxes related to stock withheld	(186)	(603)
Net cash provided by financing activities	35,416	219,890
Increase in cash and cash equivalents	90,357	(27,059)
Cash and cash equivalents, beginning of period	270,318	461,162
Cash and cash equivalents, end of period	360,675	434,103
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest	54,694	4,644
Cash paid during the period for income taxes	12,917	15,719
Non-cash: Unrealized gain (loss) on securities available for sale, net of taxes	3,765	(224,450)
Non-cash: Foreclosed loans transferred to other real estate	576	119
Non-cash: Accrued dividends at end of period	$ 9,038	$ 7,853

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Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

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

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2023, the consolidated results of operations for the three and six months ended June 30, 2023 and 2022, and the consolidated cash flows for the six months ended June 30, 2023 and 2022. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year.

Reference is made to Note 1 of the 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for a discussion of accounting policies and other relevant information with respect to the financial statements.

Certain reclassifications have been made to the June 30, 2022 and December 31, 2022 consolidated financial statements to be comparable to June 30, 2023. These reclassifications had no effect on net income.

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

Accounting Standards Adopted in 2023

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments contained in this Accounting Standards Update ("ASU") eliminate the accounting guidance for troubled debt restructurings ("TDR") by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables. The Company adopted ASU 2022-02 effective January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. The impact of the adoption resulted in an immaterial change to the allowance for credit losses ("ACL"), thus no adjustment to retained earnings was recorded. Disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty as presented in Note 4. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, the current year vintage disclosure included in Note 4 has been updated to reflect gross charge-offs by year of origination for the six months ended June 30, 2023.

ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and, therefore, is not considered in measuring fair value. The Company adopted ASU 2022-03 January 1, 2023 with no material impact on its financial statements.

ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The objective of the guidance in Topic 848 was to provide relief during the temporary transition period and the FASB included a sunset provision based on expectations of when the London Interbank Offered Rate ("LIBOR") would cease being published. The United Kingdom Financial Conduct

Authority has announced that the intended LIBOR cessation date has been extended from December 31, 2021 to June 30, 2023. As such, ASU 2022-06 defers the sunset date previously set to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848; moreover, it applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was adopted upon issuance. The Company will continue to elect various optional expedients for contract modifications affected by rate reference reform through the effective date of this guidance with no material effect on its financial statements.

Accounting Standards Pending Adoption

ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 is not expected to have a significant impact on the Company's consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

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Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

On January 1, 2023, the Company completed its acquisition of GrandSouth Bancorporation ("GrandSouth"), in an all-stock transaction pursuant to the Agreement and Plan of Merger and Reorganization (the "Merger Agreement"), dated June 21, 2022, between the Company and GrandSouth. At the closing of the transaction, GrandSouth merged into the Company. Following the merger of the Company and GrandSouth, GrandSouth Bank, a wholly-owned subsidiary of GrandSouth, merged into the Bank with the Bank being the surviving entity. The results of GrandSouth are included beginning on the January 1, 2023 acquisition date.

Pursuant to the Merger Agreement, each share of common and preferred stock of GrandSouth issued and outstanding immediately prior to the effective time of the acquisition was converted into 0.91 shares of the Company's common stock. As a result, the Company issued 5,032,834 shares of the Company common stock effective January 1, 2023. In addition, GrandSouth common stock options outstanding at the merger effective time were converted to options to acquire 0.91 shares of the Company's common stock resulting in 542,345 options with an average exercise price of approximately $20.14. The total consideration transferred at the close of the transaction was $229.5 million which was determined based on the number of shares issued and the closing market price of the Company's stock immediately prior to the merger effective time of $42.84. In addition to the stock issued, the fair value of the converted stock options calculated in accordance with FASB Accounting Standards Codification ("ASC") 805-30-55 was included in the total consideration of the transaction.

As a result of the merger, eight branches in South Carolina were added to the Company's branch network. The acquisition accomplished the Company's strategic initiative to expand its presence in South Carolina, specifically in the the high-growth markets of the state including Greenville, Charleston and Columbia. Significant synergies are anticipated to be gained from the acquisition, with asset growth and revenue enhancement opportunities from the new markets and expanded customer base. Accordingly, the Company recognized goodwill in the transaction related primarily to the reasons noted, as well as the positive earnings of GrandSouth.

This transaction was accounted for using the acquisition method of accounting for business combinations, and accordingly, the assets acquired, intangible assets identified, and liabilities assumed of GrandSouth were recorded based on estimates of fair values as of January 1, 2023. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. Estimated fair values were based on management’s best estimates, using the information available at the date of acquisition, including the use of third-party valuation specialists. Management has finalized the valuations of all acquired assets and liabilities assumed in the GrandSouth acquisition.

The following table summarizes the estimated fair value of acquired assets, identified intangible assets, and liabilities assumed as of January 1, 2023. Following the table is a discussion of valuation approaches utilized in

estimating the fair values in accordance with ASC 805-10, "Business Combinations." The $114.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes.

($ in thousands)	Fair Value Estimate
Assets acquired:
Cash and cash equivalents	$	22,610
Securities available for sale	112,363
Loans, gross	996,833
Allowance for loan losses	(5,610)
Premises and equipment	20,268
Core deposit intangible	28,840
Operating right-of-use lease assets	732
Other assets	27,163
Total	1,203,199
Liabilities assumed:
Deposits	1,045,308
Borrowings	38,800
Other liabilities	4,089
Total	1,088,197
Net identifiable assets acquired	115,002
Less: Total consideration	229,489
Goodwill recorded related to acquisition of GrandSouth	$	114,487

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed included in the table above.

Cash and cash equivalents: This consists primarily of cash and due from banks, and interest-bearing deposits with banks. The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets.

Securities available for sale: Fair value of securities was measured based on quoted market prices, where available. If a quoted market price was not available, fair value was estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. Substantially all of the securities acquired from GrandSouth were liquidated at their recorded fair value upon close of the transaction or shortly thereafter. There was no gain or loss recorded on the sale of acquired securities.

Loans: Fair value of loans acquired was based on a discounted cash flow methodology that considered factors including loan type and related collateral, classification status, remaining term of the loan, fixed or variable interest rate, amortization status, and current discount rates. Expected cash flows were derived using inputs consistent with management's assessment of credit risk for allowance measurement, including estimated future credit losses and estimated prepayments. A total fair value mark of $29.5 million was recorded. Purchased loans with financial deterioration ("PCD loans") were determined based primarily on internal grades, delinquency status, and other evidence of credit deterioration. The Company calculated the "Day 1" allowance of $5.6 million on PCD loans in accordance with its current expected credit loss model ("CECL") and reclassified that amount from the fair value mark to establish the initial ACL on PCD loans. The following table presents additional information related to the acquired loan portfolio at the acquisition date:

($ in thousands)	January 1, 2023
PCD Loans:
Par value	$	152,487
Allowance for credit losses	(5,610)
Non-credit discount	(1,370)
Purchase price	145,507
Non-PCD Loans:
Fair Value	845,716
Gross contractual amounts receivable	865,132
Estimate of contractual cash flows not expected to be collected	22,542

Premises: Land and buildings held for use were valued at appraised values, which reflected considerations of recent disposition values for similar property types with adjustments for characteristics of individual properties.

Intangible assets: Core deposit intangible ("CDI") asset represents the value of the relationships with deposit customers. The fair value for the core deposit intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of deposit base, net maintenance cost attributable to customer deposits and an estimate of the cost associated with alternative funding sources. The discount rates used for CDI assets were based on market rates. The CDI is being amortized over 10 years utilizing the sum of the months digits accelerated method, which results in a weighted-average amortization period of approximately 41 months.

Lease Assets and Lease Liabilities: Lease assets and lease liabilities were measured using a methodology that involved estimating the future lease payments over the remaining lease term with discounting using a discount rate. The lease term was determined for individual leases based on management's assessment of the probability of exercising existing renewal options.

Deposits: The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis applying interest rates currently offered to the contractual interest rates on such time deposits.

Borrowings: The fair values of long-term debt instruments were estimated based on quoted market prices for instrument if available, or for similar instruments if not available.

Supplemental Pro Forma Financial Information

The following table presents certain pro forma information as if GrandSouth had been acquired on January 1, 2022. These results combine the historical results of GrandSouth with the Company’s results and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2022.

Merger-related costs related to this acquisition of $1.3 million and $13.5 million for the three and six months ended June 30, 2023 were recorded by the Company and were excluded from the pro forma information below. In addition, no adjustments have been made to such pro forma information to eliminate the provision for loan losses recorded by GrandSouth in the amount of $0.1 million and $0.4 million for the three and six months ended June 30, 2022.

Pro forma information for the three and six months ended June 30, 2023 was adjusted to eliminate the following: 1) the non-PCD provision for loan losses recorded on the acquisition date of $12.2 million and 2) the initial recording of a provision for credit losses associated with GrandSouth’s unfunded commitments of $1.9 million. If the GrandSouth acquisition had occurred at the beginning of 2022, the acquisition date credit loss reserve amounts would have been included in the fair value measurements of GrandSouth and also included in the goodwill calculation.

The following table also discloses the impact of the acquisition of GrandSouth from the acquisition date of January 1, 2023 through June 30, 2023. These amounts are included in the Company’s consolidated financial statements as of and for the three and six months ended June 30, 2023. Merger-related costs have been excluded from these

amounts and the provisions for credit loss amounts associated with non-PCD loans and unfunded commitments that were discussed above have also been excluded.

($ in thousands)	For the three months ended				For the six months ended
	June 30, 2023				June 30, 2023
	Revenue		Net Income		Revenue		Net Income
Actual GrandSouth results included in statement of income since acquisition date	$	13,767	$	5,132	$	29,307	$	10,951
($ in thousands)	For the three months ended				For the six months ended
	June 30, 2022				June 30, 2022
	Revenue		Net Income		Revenue		Net Income
Supplemental consolidated pro forma for the Company as if GrandSouth had been acquired on January 1, 2022	110,248		39,746		220,672		77,213

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Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:

($ in thousands)	June 30, 2023					December 31, 2022
	Amortized Cost		Fair Value	Unrealized		Amortized Cost	Fair Value	Unrealized
				Gains	(Losses)			Gains	(Losses)
Securities available for sale:
U.S. Treasuries	$	174,601	169,613	—	(4,988)	174,420	168,758	—	(5,662)
Government-sponsored enterprise securities	71,960		58,511	—	(13,449)	71,957	57,456	—	(14,501)
Mortgage-backed securities	2,393,696		1,973,539	1	(420,158)	2,467,839	2,045,000	4	(422,843)
Corporate bonds	19,674		18,123	—	(1,551)	44,340	43,279	—	(1,061)
Total available for sale	$	2,659,931	2,219,786	1	(440,146)	2,758,556	2,314,493	4	(444,067)
Securities held to maturity:
Mortgage-backed securities	$	13,502	12,610	—	(892)	15,150	14,221	—	(929)
State and local governments	524,319		429,271	6	(95,054)	526,550	418,307	7	(108,250)
Total held to maturity	$	537,821	441,881	6	(95,946)	541,700	432,528	7	(109,179)

All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSE"), except for private mortgage-backed securities with a fair value of $0.8 million and $0.8 million as of June 30, 2023 and December 31, 2022, respectively.

The following table presents information regarding all securities with unrealized losses at June 30, 2023:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Treasuries	$	—	—	169,613	4,988	169,613	4,988
Government-sponsored enterprise securities	—		—	58,511	13,449	58,511	13,449
Mortgage-backed securities	39,491		1,836	1,945,483	419,214	1,984,974	421,050
Corporate bonds	2,618		306	13,754	1,245	16,372	1,551
State and local governments	5,240		38	423,008	95,016	428,248	95,054
Total unrealized loss position	$	47,349	2,180	2,610,369	533,912	2,657,718	536,092

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

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasury securities	$	168,758	5,662	—	—	168,758	5,662
Government-sponsored enterprise securities	—		—	57,456	14,501	57,456	14,501
Mortgage-backed securities	221,006		18,215	1,835,958	405,557	2,056,964	423,772
Corporate bonds	40,644		947	886	114	41,530	1,061
State and local governments	48,385		8,323	368,897	99,927	417,282	108,250
Total unrealized loss position	$	478,793	33,147	2,263,197	520,099	2,741,990	553,246

As of June 30, 2023, the Company's securities portfolio held 657 securities of which 645 securities were in an unrealized loss position. As of December 31, 2022, the Company's securities portfolio held 666 securities of which 644 securities were in an unrealized loss position.

In the above tables, all of the securities that were in an unrealized loss position at June 30, 2023 and December 31, 2022 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the severity of the impairment. The state and local government investments are comprised almost entirely of highly-rated municipal bonds issued by state and local governments throughout the nation. The Company has no significant concentrations of bond holdings from one state or local government entity. Nearly all of our mortgage-backed securities were issued by Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Government National Mortgage Association ("GNMA"), or the Small Business Administration ("SBA"), each of which is a government agency or GSE and guarantees the repayment of the securities. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

At June 30, 2023 and December 31, 2022, the Company determined that expected credit losses associated with held to maturity debt securities were insignificant.

The book values and approximate fair values of investment securities at June 30, 2023, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	99,944	97,508	—	—
Due after one year but within five years	77,166		74,338	996	887
Due after five years but within ten years	88,125		73,458	92,917	77,987
Due after ten years	1,000		943	430,406	350,397
Mortgage-backed securities	2,393,696		1,973,539	13,502	12,610
Total securities	$	2,659,931	2,219,786	537,821	441,881

At June 30, 2023 and December 31, 2022, investment securities with carrying values of $1.6 billion and $758.0 million, respectively, were pledged as collateral for public deposits or at the Federal Reserve Bank of Richmond ("Federal Reserve") as security on lines of credit.

At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity.

There were no sales of investment securities during the three or six months ended June 30, 2023.

Included in “Other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve stock totaling $54.9 million and $39.6 million at June 30, 2023 and December 31, 2022, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $22.1 million and $14.7 million at June 30, 2023 and December 31, 2022, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The Federal Reserve stock had a cost and fair value of $32.7 million and $24.9 million at June 30, 2023 and December 31, 2022, respectively, and is a requirement for Federal Reserve member bank qualification. Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end.

The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at June 30, 2023 was approximately 1.59, which means the Company would have received approximately 19,649 Class A shares if the stock had converted on that date. This Class B stock does not have a readily determinable fair value and is carried at zero. If a readily determinable fair value becomes available for the Class B shares, or upon their conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.

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Loans, Allowance for Credit Losses, and Asset Quality Information

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Loans, Allowance for Credit Losses, and Asset Quality Information

Loans, Allowance for Credit Losses, and Asset Quality Information

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

($ in thousands)	June 30, 2023				December 31, 2022
	Amount		Percentage		Amount		Percentage
Commercial and industrial	$	888,391	11	%	$	641,941	9	%
Construction, development & other land loans	1,109,769		14	%	934,176		14	%
Commercial real estate - owner occupied	1,222,189		16	%	1,036,270		16	%
Commercial real estate - non owner occupied	2,423,262		31	%	2,123,811		32	%
Multi-family real estate	392,120		5	%	350,180		5	%
Residential 1-4 family real estate	1,461,068		18	%	1,195,785		18	%
Home equity loans/lines of credit	334,566		4	%	323,726		5	%
Consumer loans	67,077		1	%	60,659		1	%
Subtotal	7,898,442		100	%	6,666,548		100	%
Unamortized net deferred loan fees	(813)				(1,403)
Total loans	$	7,897,629			$	6,665,145

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.

($ in thousands)	June 30, 2023		December 31, 2022
Guaranteed portions of SBA loans included in table above	$	39,339	31,893
Unguaranteed portions of SBA loans included in table above	114,643		116,910
Total SBA loans included in the table above	$	153,982	148,803
Sold portions of SBA loans with servicing retained - not included in tables above	$	371,943	392,370

At June 30, 2023 and December 31, 2022, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $3.8 million and $4.3 milion, respectively.

At June 30, 2023 and December 31, 2022, loans in the amount of $6.1 billion and $5.3 billion, respectively, were pledged as collateral for certain borrowings.

At June 30, 2023 and December 31, 2022, total loans included loans to executive officers and directors of the Company, and their associates, totaling approximately $5.8 million and $6.0 million, respectively. There were two new loans and advances on existing loans totaling approximately $0.1 million for the six months ended June 30, 2023 and repayments amounted to $0.3 million for that period. Available credit on related party loans totaled $1.2 million at June 30, 2023 and December 31, 2022. Management does not believe these loans involve more than the normal risk of collectability or present other unfavorable features.

As of June 30, 2023 and December 31, 2022, unamortized discounts on all acquired loans totaled $29.2 million and $11.6 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform.

Nonperforming assets ("NPA") are defined as nonaccrual loans, modifications to borrowers in financial distress, loans past due 90 or more days and still accruing interest, foreclosed real estate, and prior to the adoption of ASU 2022-02 on January 1, 2023, TDRs.

The following table summarizes the NPAs for each period presented.

($ in thousands)	June 30, 2023		December 31, 2022
Nonaccrual loans	$	29,876	28,514
Modifications to borrowers in financial distress	4,862		—
TDRs - accruing	—		9,121
Total nonperforming loans	34,738		37,635
Foreclosed real estate	1,077		658
Total nonperforming assets	$	35,815	38,293

At June 30, 2023 and December 31, 2022, the Company had $2.7 million and $0.8 million, respectively, in residential mortgage loans in the process of foreclosure.

At both June 30, 2023 and December 31, 2022, there was one loan, respectively, with an immaterial commitment to lend additional funds to borrowers whose loans were nonperforming.

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2023:

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	—	11,299	11,299
Construction, development & other land loans	—		265	265
Commercial real estate - owner occupied	3,277		7,988	11,265
Commercial real estate - non owner occupied	673		1,153	1,826
Multi-family real estate	—		—	—
Residential 1-4 family real estate	—		3,198	3,198
Home equity loans/lines of credit	—		1,867	1,867
Consumer loans	—		156	156
Total	$	3,950	25,926	29,876

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

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	3,855	6,374	10,229
Construction, development & other land loans	—		1,009	1,009
Commercial real estate - owner occupied	3,903		5,770	9,673
Commercial real estate - non owner occupied	1,107		1,725	2,832
Multi-family real estate	—		—	—
Residential 1-4 family real estate	157		3,132	3,289
Home equity loans/lines of credit	—		1,397	1,397
Consumer loans	—		85	85
Total	$	9,022	19,492	28,514

There was no interest income recognized during the periods presented on nonaccrual loans. The Company follows its nonaccrual policy of reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status.

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

($ in thousands)	Six Months Ended June 30, 2023		For the Year Ended December 31, 2022	Six Months Ended June 30, 2022
Commercial and industrial	$	162	102	33
Construction, development & other land loans	2		16	16
Commercial real estate - owner occupied	64		123	100
Commercial real estate - non owner occupied	7		15	2
Multi-family real estate	—		1	—
Residential 1-4 family real estate	20		45	25
Home equity loans/lines of credit	16		20	6
Consumer loans	1		2	2
Total	$	272	324	184

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2023:

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	702	1,127	—	11,299	875,263	888,391
Construction, development & other land loans	585		22	—	265	1,108,897	1,109,769
Commercial real estate - owner occupied	525		400	—	11,265	1,209,999	1,222,189
Commercial real estate - non owner occupied	61		634	—	1,826	2,420,741	2,423,262
Multi-family real estate	—		—	—	—	392,120	392,120
Residential 1-4 family real estate	1,027		1,814	—	3,198	1,455,029	1,461,068
Home equity loans/lines of credit	550		673	—	1,867	331,476	334,566
Consumer loans	229		56	—	156	66,636	67,077
Total	$	3,679	4,726	—	29,876	7,860,161	7,898,442
Unamortized net deferred loan fees							(813)
Total loans							7,897,629

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

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	438	565	—	10,229	630,709	641,941
Construction, development & other land loans	238		1,687	—	1,009	931,242	934,176
Commercial real estate - owner occupied	124		48	—	9,673	1,026,425	1,036,270
Commercial real estate - non owner occupied	496		49	—	2,832	2,120,434	2,123,811
Multi-family real estate	—		—	—	—	350,180	350,180
Residential 1-4 family real estate	3,415		25	—	3,289	1,189,056	1,195,785
Home equity loans/lines of credit	457		371	—	1,397	321,501	323,726
Consumer loans	249		66	—	85	60,259	60,659
Total	$	5,417	2,811	—	28,514	6,629,806	6,666,548
Unamortized net deferred loan fees							(1,403)
Total loans							$	6,665,145

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The Company reviews individually evaluated loans on nonaccrual with a net book balance of $500,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $500,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL.

The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2023:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	1,626	—	—	1,626
Commercial real estate - owner occupied	—		—	—	5,830	5,830
Commercial real estate - non owner occupied	—		—	—	673	673
Total	$	—	1,626	—	6,503	8,129

The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2022:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	6,394	—	—	6,394
Commercial real estate - owner occupied	—		—	—	4,578	4,578
Commercial real estate - non owner occupied	—		—	—	2,145	2,145
Residential 1-4 family real estate	157		—	—	—	157
Total	$	157	6,394	—	6,723	13,274

Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The Company's policy is to obtain third-party appraisals on any significant pieces of collateral. For loans secured by real estate, the Company's policy is to write nonaccrual loans down to 90% of the appraised value, which considers estimated selling costs that are usually incurred when disposing of real estate collateral. For real estate collateral that is in industries which may be undergoing heightened stress due to economic or other external factors, the Company may reduce the collateral values by an additional 10-25% of appraised value to recognize additional discounts that are estimated to be incurred in a near-term sale. For non real estate collateral secured loans, the

Company generally writes nonaccrual loans down to 75% of the appraised value, which provides for selling costs and liquidity discounts that are usually incurred when disposing of non real estate collateral. For reviewed loans that are not on nonaccrual basis, the Company assigns a specific allowance based on the parameters noted above.

The Company does not believe that there is significant excess collateral for any of the loan types noted above.

The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the six months ended June 30, 2023 is attributed to the acquisition of GrandSouth. In addition to the "Day 1" allowance recorded for PCD loans of $5.6 million, the Company recorded a "Day 2" initial provision of $12.2 million related to the non-PCD loans in the GrandSouth portfolio. The balance of the change was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to some deterioration in the commercial real estate index.

($ in thousands)	Beginning balance		"Day 1" ACL for acquired PCD loans	Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2023
Commercial and industrial	$	23,073	—	(1,534)	492	1,411	23,442
Construction, development & other land loans	18,986		—	—	158	(667)	18,477
Commercial real estate - owner occupied	16,082		—	—	34	265	16,381
Commercial real estate - non owner occupied	25,990		—	—	38	246	26,274
Multi-family real estate	3,204		—	—	3	739	3,946
Residential 1-4 family real estate	12,285		—	—	79	1,941	14,305
Home equity loans/lines of credit	3,481		—	—	40	196	3,717
Consumer loans	3,295		—	(217)	41	(431)	2,688
Total	$	106,396	—	(1,751)	885	3,700	109,230
As of and for the six months ended June 30, 2023
Commercial and industrial	$	17,718	5,197	(3,711)	766	3,472	23,442
Construction, development & other land loans	15,128		49	—	223	3,077	18,477
Commercial real estate - owner occupied	14,972		191	—	70	1,148	16,381
Commercial real estate - non owner occupied	22,780		51	(235)	432	3,246	26,274
Multi-family real estate	2,957		—	—	7	982	3,946
Residential 1-4 family real estate	11,354		113	—	225	2,613	14,305
Home equity loans/lines of credit	3,158		8	(2)	74	479	3,717
Consumer loans	2,900		1	(424)	77	134	2,688
Total	$	90,967	5,610	(4,372)	1,874	15,151	109,230

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the year ended December 31, 2022
Commercial and industrial	$	16,249	(2,519)	756	3,232	17,718
Construction, development & other land loans	16,519		—	480	(1,871)	15,128
Commercial real estate - owner occupied	12,317		(214)	691	2,178	14,972
Commercial real estate - non owner occupied	16,789		(849)	1,281	5,559	22,780
Multi-family real estate	1,236		—	11	1,710	2,957
Residential 1-4 family real estate	8,686		—	17	2,651	11,354
Home equity loans/lines of credit	4,337		(43)	600	(1,736)	3,158
Consumer loans	2,656		(840)	207	877	2,900
Total	$	78,789	(4,465)	4,043	12,600	90,967

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2022
Commercial and industrial	$	16,013	(728)	223	(58)	15,450
Construction, development & other land loans	16,057		—	130	(16)	16,171
Commercial real estate - owner occupied	15,274		(18)	529	(864)	14,921
Commercial real estate - non owner occupied	19,440		(800)	768	716	20,124
Multi-family real estate	2,613		—	3	(467)	2,149
Residential 1-4 family real estate	8,159		—	11	480	8,650
Home equity loans/lines of credit	2,074		—	128	(116)	2,086
Consumer loans	2,439		(214)	80	325	2,630
Total	$	82,069	(1,760)	1,872	—	82,181
As of and for the six months ended June 30, 2022
Commercial and industrial	$	16,249	(1,518)	470	249	15,450
Construction, development & other land loans	16,519		—	267	(615)	16,171
Commercial real estate - owner occupied	12,317		(18)	560	2,062	14,921
Commercial real estate - non owner occupied	16,789		(845)	889	3,291	20,124
Multi-family real estate	1,236		—	6	907	2,149
Residential 1-4 family real estate	8,686		—	15	(51)	8,650
Home equity loans/lines of credit	4,337		(41)	361	(2,571)	2,086
Consumer loans	2,656		(381)	127	228	2,630
Total	$	78,789	(2,803)	2,695	3,500	82,181

Credit Quality Indicators

The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type.

The following describes the Company’s internal risk grades in ascending order of likelihood of loss:

	Risk Grade	Description
Pass:
	1	Loans with virtually no risk, including cash secured loans.
	2	Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
	3	Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
	4	Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.
	5	Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
	P (Pass)	Consumer loans that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.
Special Mention:
	6	Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
	7	An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
	8	Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
	9	Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
	F (Fail)	Consumer loans with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.

In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.

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

	Term Loans by Year of Origination
($ in thousands)	2023		2022	2021	2020	2019	Prior	Revolving	Total
As of June 30, 2023
Commercial and industrial
Pass	$	74,660	181,469	115,551	84,957	48,034	67,670	298,082	870,423
Special Mention	347		486	335	502	1,094	889	1,068	4,721
Classified	297		1,244	1,991	1,601	1,252	5,274	1,588	13,247
Total commercial and industrial	75,304		183,199	117,877	87,060	50,380	73,833	300,738	888,391
Gross charge-offs, YTD	—		146	696	32	556	764	1,517	3,711
Construction, development & other land loans
Pass	310,613		466,562	214,178	22,440	15,743	9,253	67,372	1,106,161
Special Mention	387		2,212	—	22	—	99	23	2,743
Classified	404		104	81	8	16	228	24	865
Total construction, development & other land loans	311,404		468,878	214,259	22,470	15,759	9,580	67,419	1,109,769
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - owner occupied
Pass	93,809		316,395	325,281	210,414	101,728	123,372	17,491	1,188,490
Special Mention	730		279	720	3,798	5,949	5,850	635	17,961
Classified	425		3,128	1,749	267	2,443	7,636	90	15,738
Total commercial real estate - owner occupied	94,964		319,802	327,750	214,479	110,120	136,858	18,216	1,222,189
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - non owner occupied
Pass	263,968		750,657	781,011	326,322	144,933	115,805	23,895	2,406,591
Special Mention	373		218	40	4,604	1,348	6,087	—	12,670
Classified	96		1,090	16	—	1,425	1,374	—	4,001
Total commercial real estate - non owner occupied	264,437		751,965	781,067	330,926	147,706	123,266	23,895	2,423,262
Gross charge-offs, YTD	—		—	235	—	—	—	—	235
Multi-family real estate
Pass	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Residential 1-4 family real estate
Pass	153,127		393,590	318,229	198,500	98,969	281,467	1,715	1,445,597
Special Mention	697		44	196	151	607	2,036	19	3,750
Classified	312		245	374	811	436	8,928	615	11,721
Total residential 1-4 family real estate	154,136		393,879	318,799	199,462	100,012	292,431	2,349	1,461,068
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Home equity loans/lines of credit
Pass	1,770		3,404	1,275	298	606	1,752	315,797	324,902
Special Mention	223		—	120	—	—	17	77	437
Classified	107		66	151	93	98	125	8,587	9,227
Total home equity loans/lines of credit	2,100		3,470	1,546	391	704	1,894	324,461	334,566
Gross charge-offs, YTD	—		—	—	—	—	—	2	2
Consumer loans
Pass	9,298		16,548	6,956	3,097	808	826	28,963	66,496
Special Mention	—		—	—	—	—	—	—	—
Classified	233		146	77	13	5	12	95	581
Total consumer loans	9,531		16,694	7,033	3,110	813	838	29,058	67,077
Gross charge-offs, YTD	5		8	22	3	—	—	386	424
Total loans	$	947,045	2,284,505	1,904,213	903,812	438,144	650,261	770,462	7,898,442
Unamortized net deferred loan fees									(813)
Total loans, net of deferred loan fees									7,897,629
Total gross charge-offs, year to date	$	5	154	953	35	556	764	1,905	4,372

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of December 31, 2022
Commercial and industrial
Pass	$	185,167	107,747	85,110	51,274	590	76,588	120,590	627,066
Special Mention	342		166	648	1,312	—	990	332	3,790
Classified	734		1,909	808	1,384	—	5,762	488	11,085
Total commercial and industrial	186,243		109,822	86,566	53,970	590	83,340	121,410	641,941
Construction, development & other land loans
Pass	550,752		267,096	42,421	30,973	—	12,722	19,519	923,483
Special Mention	5,128		5	3,679	—	—	100	13	8,925
Classified	656		107	38	899	—	44	24	1,768
Total construction, development & other land loans	556,536		267,208	46,138	31,872	—	12,866	19,556	934,176
Commercial real estate - owner occupied
Pass	258,025		305,324	190,464	96,495	179	141,053	15,499	1,007,039
Special Mention	1,170		1,070	4,042	6,926	—	3,277	665	17,150
Classified	3,060		208	84	1,572	—	6,790	367	12,081
Total commercial real estate - owner occupied	262,255		306,602	194,590	104,993	179	151,120	16,531	1,036,270
Commercial real estate - non owner occupied
Pass	718,696		747,653	319,708	141,284	—	168,096	21,159	2,116,596
Special Mention	545		44	394	1,363	—	1,180	—	3,526
Classified	420		1,057	—	884	—	1,328	—	3,689
Total commercial real estate - non owner occupied	719,661		748,754	320,102	143,531	—	170,604	21,159	2,123,811
Multi-family real estate
Pass	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Residential 1-4 family real estate
Pass	317,282		274,756	186,102	98,559	185	301,885	1,379	1,180,148
Special Mention	1,189		127	110	470	—	2,416	—	4,312
Classified	763		251	221	359	—	9,072	659	11,325
Total residential 1-4 family real estate	319,234		275,134	186,433	99,388	185	313,373	2,038	1,195,785
Home equity loans/lines of credit
Pass	869		1,091	349	237	—	2,020	309,786	314,352
Special Mention	175		—	—	—	—	18	1,072	1,265
Classified	106		156	94	87	—	213	7,453	8,109
Total home equity loans/lines of credit	1,150		1,247	443	324	—	2,251	318,311	323,726
Consumer loans
Pass	35,406		7,946	3,610	1,056	3	1,250	10,953	60,224
Special Mention	—		—	—	—	—	—	—	—
Classified	320		31	3	1	—	25	55	435
Total consumer loans	35,726		7,977	3,613	1,057	3	1,275	11,008	60,659
Total loans	$	2,200,727	1,850,445	897,337	444,804	957	750,041	522,237	6,666,548
Unamortized net deferred loan fees									(1,403)
Total loans, net of deferred loan fees									6,665,145

Loan Modifications to Borrowers Experiencing Financial Difficulty

Effective January 1, 2023, we adopted ASU 2022-02 which eliminated the accounting guidance for TDRs and requires disclosures for certain loan modifications when a borrower is experiencing financial difficulty.

Occasionally, the Company modifies loans to borrowers in financial distress as a part of our loss mitigation activities. Various types of modification may be offered including principal forgiveness, term extension, payment delays, or interest rate reductions. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. For loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

The followings tables present the amortized cost basis at June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted. Percentages labeled as "NM" are not measurable to the class of financing receivable, as they are less than 0.1% of the total class.

($ in thousands)	Payment Delay		Term Extension	Combination - Interest Rate Reduction and Term Extension	Total	Percent of Total Class of Loans
As of and for the three months ended June 30, 2023
Commercial and industrial	$	1,363	30	—	1,393	0.16	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Residential 1-4 family real estate	—		469	—	469	0.03	%
Home equity loans/lines of credit	—		1,317	—	1,317	0.39	%
Total	$	1,551	2,103	—	3,654	0.05	%
As of and for the six months ended June 30, 2023
Commercial and industrial	$	1,513	105	—	1,618	0.18	%
Construction, development & other land loans	—		502	12	514	0.05	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Commercial real estate - non owner occupied	—		96	—	96	NM
Residential 1-4 family real estate	—		515	—	515	0.04	%
Home equity loans/lines of credit	—		1,416	—	1,416	0.42	%
Consumer loans	—		228	—	228	0.34	%
Total	$	1,701	3,149	12	4,862	0.06	%

For the three and six months ended June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following tables describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:

	Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
	Weighted Average Interest Rate Reduction	Weighted Average Payment Delay (in months)	Weighted Average Term Extension (in months)
For the three months ended June 30, 2023
Commercial and industrial	—%	2	25
Commercial real estate - owner occupied	—%	12	49
Residential 1-4 family real estate	—%	0	25
Home equity loans/lines of credit	—%	0	42
For the six months ended June 30, 2023
Commercial and industrial	—%	2	13
Construction, development & other land loans	1.50%	0	7
Commercial real estate - owner occupied	—%	12	49
Commercial real estate - non owner occupied	—%	0	15
Residential 1-4 family real estate	—%	0	24
Home equity loans/lines of credit	—%	0	40
Consumer loans	—%	0	6

The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:

	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-59 Days Past Due	60-89 Days Past Due	90+ Days Past Due
Commercial and industrial	$	1,618	—	—	—
Construction, development & other land loans	514		—	—	—
Commercial real estate - owner occupied	475		—	—	—
Commercial real estate - non owner occupied	96		—	—	—
Multi-family real estate	—		—	—	—
Residential 1-4 family real estate	345		—	170	—
Home equity loans/lines of credit	1,416		—	—	—
Consumer loans	228		—	—	—
	$	4,692	—	170	—

None of the modifications made for borrowers experiencing financial difficulty during the three and six months ended June 30, 2023 are considered to have had a payment default.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.

TDR Disclosures Prior to the Adoption of ASU 2022-02

The restructuring of a loan was considered a TDR if both (i) the borrower was experiencing financial difficulties and (ii) the creditor had granted a concession. Concessions may have included interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses.

The vast majority of the Company’s TDRs modified during the periods ended June 30, 2022 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness.

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

The following table presents information related to loans modified in a TDR during the three and six months ended June 30, 2022.

	For the three months ended June 30, 2022				For the six months ended June 30, 2022
($ in thousands)	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances
TDRs - Accruing
Commercial and industrial	1	$	161	161	1	$	161	161
Construction, development & other land loans	1	131		131	1	131		131
Residential 1-4 family real estate	—	—		—	1	36		36
Home equity loans/lines of credit	2	203		203	2	203		203
TDRs - Nonaccrual
Commercial and industrial	2	259		259	3	300		300
Commercial real estate - owner occupied	1	244		244	2	784		784
Residential 1-4 family real estate	—	—		—	1	36		36
Total TDRs arising during period	7	$	998	998	11	$	1,651	1,651

The Company considered a TDR loan to have defaulted when it became 90 or more days delinquent under the modified terms, had been transferred to nonaccrual status, or had been transferred to foreclosed real estate. There were no accruing TDRs that were modified in the previous twelve months and that defaulted during the three and six months ended June 30, 2022.

Concentration of Credit Risk

Most of the Company's business activity is with customers located within the markets where it has banking operations. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy within its markets. Approximately 88% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations.

Allowance for Credit Losses - Unfunded Loan Commitments

In addition to the ACL on loans, the Company maintains an ACL for lending-related commitments such as unfunded loan commitments and letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for unfunded commitments expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans. The ACL for unfunded loan commitments of $13.0 million and $13.3 million at June 30, 2023 and December 31, 2022, respectively, were separately classified on the Consolidated Balance Sheets within "Other liabilities."

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2023 and 2022 and for the twelve months ended December 31, 2022:

($ in thousands)	June 30, 2023		December 31, 2022	June 30, 2022
Beginning balance	$	13,306	13,506	13,506
"Day 2" provision for credit losses on unfunded commitments acquired from GrandSouth	1,921		—	—
Charge-offs	—		—	—
Recoveries	—		—	—
Reversal of provision for unfunded commitments	(2,209)		(200)	(1,500)
Ending balance	$	13,018	13,306	12,006

Allowance for Credit Losses - Securities Held to Maturity

The ACL for securities held to maturity was insignificant at June 30, 2023 and December 31, 2022.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.

	June 30, 2023			December 31, 2022
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	2,007	2,700	1,847
Core deposit intangibles	57,890		25,296	29,050	21,274
Other intangibles	100		71	100	58
Intangibles before servicing assets	60,690		27,374	31,850	23,179
SBA servicing assets	13,536		9,755	13,264	9,260
Total amortizable intangible assets	$	74,226	37,129	45,114	32,439
Unamortizable intangible assets:
Goodwill	$	478,750		364,263

Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate.

Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $2.0 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $4.2 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively.

SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees."

The following table presents the changes in the SBA servicing assets and SBA servicing income for the three and six months ended June 30, 2023 and 2022:

	Three months ended June 30,			Six months ended June 30,
($ in thousands)	2023		2022	2023	2022
Beginning balance, net	$	3,897	5,591	4,004	5,472
Add: New servicing assets	195		281	271	1,026
Less: Amortization and impairment expense	311		905	494	1,531
Ending balance, net	$	3,781	4,967	3,781	4,967
SBA guaranteed servicing income	$	863	992	1,847	1,781

At June 30, 2023 and December 31, 2022, the Company serviced SBA loans totaling $371.9 million and $392.4 million, respectively, for others. There were no other loans serviced in any period presented.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. No triggering events were identified during 2023 to date or in 2022, and therefore, the Company did not perform interim impairment evaluations in either of those periods. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2022 evaluation, indicated that there was no goodwill impairment.

The following table presents the changes in carrying amounts of goodwill:

($ in thousands)	Total Goodwill
Balance at December 31, 2021	$	364,263
Net activity during 2022	—
Balance at December 31, 2022	364,263
Additions from acquisition of GrandSouth	114,487
Balance at June 30, 2023	$	478,750

In connection with the GrandSouth acquisition on January 1, 2023, the Company recorded $28.8 million in core deposit intangibles.

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

($ in thousands)	Estimated Amortization Expense
July 1, 2023 to December 31, 2023	$	3,808
2024	6,604
2025	5,672
2026	4,705
2027	3,951
Thereafter	8,576
Total	$	33,316

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Borrowings

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

The following tables present information regarding the Company’s outstanding borrowings at June 30, 2023 and December 31, 2022 (dollars in thousands):

Description	Due date	Call Feature	June 30, 2023		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	8	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	891		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	208		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	34		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	322		0.50% fixed
FHLB Daily Rate Credit	7/13/2023	None	75,000		5.24% fixed
FHLB Fixed Rate Credit	9/13/2023	None	300,000		5.17% fixed
FHLB Fixed Rate Hybrid	9/29/2023	None	5,000		0.40% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.95% at 6/30/23 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		8.05% at 6/30/23 adjustable rate  3 month LIBOR + 2.75%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		7.66% at 6/30/23 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		7.26% at 6/30/23 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.26% at 6/30/23 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	6/23/2036	Quarterly by the Company beginning 6/23/2011	8,248		7.39% at 6/30/23 adjustable rate 3 month LIBOR + 1.85%
Subordinated Debentures	11/30/2028	Semi-annually by Company beginning 11/30/2023	10,000		6.50% fixed
Subordinated Debentures	11/15/2030	Semi-annually by Company beginning 11/15/2025	18,000		4.38% fixed
Total borrowings / weighted average rate as of June 30, 2023			487,097		5.44%
Unamortized discount on acquired borrowings			(5,439)
Total borrowings			$	481,658

As discussed in Note 1, with the June 30, 2023 cessation of LIBOR, the index for the interest rates on the Company's trust preferred securities will automatically convert to the 3-month CME Term SOFR plus a spread intended to approximate the current interest rate. No material impact on the Company's financial statements is anticipated upon the next interest rate reset based on the SOFR index.

Description	Due date	Call Feature	December 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	32	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	912		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	214		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	38		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	158		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	159		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	329		0.50% fixed
FHLB Daily Rate Credit	8/23/2023	None	40,000		4.57% fixed
FHLB Fixed Rate Credit	1/9/2023	None	50,000		4.15% fixed
FHLB Fixed Rate Credit	2/1/2023	None	80,000		4.25% fixed
FHLB Fixed Rate Credit	2/9/2023	None	50,000		4.35% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.06% at 12/31/22 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.16% at 12/31/22 adjustable rate 3 month LIBOR + 2.75%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.16% at 12/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		6.90% at 12/31/22 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		6.08% at 12/31/22 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2022			290,918		4.82%
Unamortized discount on acquired borrowings			(3,411)
Total borrowings			$	287,507

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Leases

6 Months Ended

Jun. 30, 2023

Lessee Disclosure [Abstract]

Leases

Leases

The Company enters into leases in the normal course of business. As of June 30, 2023, the Company leased 17 branch offices for which the land and buildings are leased and 10 branch offices for which the land is leased but the buildings are owned. The Company also leases office space for several operational departments. All of the Company’s leases are operating leases under applicable accounting standards and the lease agreements have maturity dates ranging from July 2023 through May 2076, some of which include options for multiple five- and ten-year extensions. The weighted average remaining life of the lease term for these leases was 19.3 years as of June 30, 2023. Certain of the Company's lease agreements include variable lease payments based on changes in inflation, with the impact of that factor being insignificant to the Company's total lease expense. As permitted by applicable accounting standards, the Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's Consolidated Balance Sheets. The short-term lease cost for each period presented was insignificant.

Leases are classified as either operating or finance leases at the lease commencement date, and as previously noted, all of the Company's leases have been determined to be operating leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the applicable lease term. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 3.07% as of June 30, 2023.

Total operating lease expenses were $0.8 million and $0.7 million for the three months ended June 30, 2023 and 2022, respectively, and $1.5 million and $1.6 million for the six months ended June 30, 2023 and 2022, respectively. The right-of-use assets and lease liabilities were $18.4 million and $19.1 million as of June 30, 2023, respectively, and were $18.7 million and $19.4 million as of December 31, 2022, respectively.

Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows.

($ in thousands)
July 1, 2023 to December 31, 2023	$	1,180
2024	2,163
2025	1,706
2026	1,685
2027	1,547
Thereafter	18,441
Total undiscounted lease payments	26,722
Less effect of discounting	(7,613)
Present value of estimated lease payments (lease liability)	$	19,109

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Pension Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

The Company sponsored two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which was generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”) which was for the benefit of certain senior management executives of the Company. Effective December 31, 2012, the Company froze both plans for all participants. Although no previously accrued benefits were lost, no additional accruals of benefits under these plans for service subsequent to 2012 have been made.

The Company recorded periodic pension cost totaling $50,000 and $51,000 for the three months ended June 30, 2023 and 2022, respectively, and $101,000 and $102,000 for the six months ended June 30, 2023 and 2022, respectively. The following table contains the components of the pension cost:

	For the Three Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	266		28	294	267	28	295
Expected return on plan assets	(288)		—	(288)	(288)	—	(288)
Amortization of net loss (gain)	180		(136)	44	180	(136)	44
Net periodic pension cost	$	158	(108)	50	159	(108)	51
	For the Six Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	533		56	589	534	56	590
Expected return on plan assets	(576)		—	(576)	(576)	—	(576)
Amortization of net (gain)/loss	360		(272)	88	360	(272)	88
Net periodic pension cost	$	317	(216)	101	318	(216)	102

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

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The Company did not contribute to the Pension Plan in the first six months of 2023 and does not expect to contribute to the Pension Plan in the remainder of 2023. Effective March 31, 2023, the Company determined that the Pension Plan will be terminated during 2023 and a termination cost estimate of $2.4 million is included in the accompanying consolidated income statement.

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

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Fair Value

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2023:

($ in thousands) Description of Financial Instruments	Fair Value at June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
U.S. Treasury	$	169,613	—	169,613	—
Government-sponsored enterprise securities	58,511		—	58,511	—
Mortgage-backed securities	1,973,539		—	1,973,539	—
Corporate bonds	18,123		—	18,123	—
Total available for sale securities	$	2,219,786	—	2,219,786	—
Presold mortgages in process of settlement	$	4,953	4,953	—	—
Nonrecurring
Individually evaluated loans	$	2,399	—	—	2,399

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2022:

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
US Treasury securities	$	168,758	—	168,758	—
Government-sponsored enterprise securities	57,456		—	57,456	—
Mortgage-backed securities	2,045,000		—	2,045,000	—
Corporate bonds	43,279		—	43,279	—
Total available for sale securities	$	2,314,493	—	2,314,493	—
Presold mortgages in process of settlement	$	1,282	1,282	—	—
Nonrecurring
Individually evaluated loans	$	9,590	—	—	9,590
Foreclosed real estate	38		—	—	38

The following is a description of the valuation methodologies used for financial instruments measured at fair value.

Presold Mortgages in Process of Settlement — The fair value is based on the committed price that an investor has agreed to pay for the loan and is considered a Level 1 input.

Securities Available for Sale — When quoted market prices are available in an active market, the securities are classified as Level 1 in the valuation hierarchy. If quoted market prices are not available, but fair values can be estimated by observing quoted prices of securities with similar characteristics, the securities are classified as Level 2 in the valuation hierarchy. Most of the fair values for the Company’s Level 2 securities are determined by our third-party bond accounting provider using matrix pricing. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. For the Company, Level 2 securities include U.S. Treasury bonds, mortgage-backed securities, commercial mortgage-backed obligations, GSEs, and corporate bonds. In cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Individually evaluated loans — Fair values for individually evaluated loans are measured on a non-recurring basis and are based on (1) the underlying collateral values securing the loans, adjusted for estimated selling costs, or (2) the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is generally determined by third-party appraisers using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3). The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the loans first became impaired, and thus the appraisals are not necessarily as of the period ends presented. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income.

Foreclosed real estate — Foreclosed real estate, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value. Fair value is measured on a non-recurring basis and is based upon independent market prices or current appraisals that are generally prepared using an income or market valuation approach and conducted by an independent, licensed third party appraiser, adjusted for estimated selling costs (Level 3). Appraisals used in this analysis are generally obtained at least annually based on when the assets were acquired, and thus the appraisals are not necessarily as of the period ends presented. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the ACL. For any real estate valuations

subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income.

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	2,399	Appraised value	Discounts applied for estimated costs to sell	10%

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

($ in thousands)	Fair Value at December 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	5,680	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	3,910		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	5.5%-11.1% (6.76%)
Foreclosed real estate	38		Appraised value	Discounts applied for estimated costs to sell	10%

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2023 and December 31, 2022 were as follows:

		June 30, 2023			December 31, 2022
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value	Carrying Amount	Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1	$	101,215	101,215	101,133	101,133
Due from banks, interest-bearing	Level 1	259,460		259,460	169,185	169,185
Securities held to maturity	Level 2	537,821		441,881	541,700	432,528
Total loans, net of allowance	Level 3	7,788,399		7,339,310	6,574,178	6,240,870
Accrued interest receivable	Level 1	33,446		33,446	29,710	29,710
Bank-owned life insurance	Level 1	181,659		181,659	164,592	164,592
SBA Servicing Asset	Level 3	3,781		4,664	4,004	4,721
Deposits	Level 2	10,168,569		10,156,818	9,227,529	9,218,945
Borrowings	Level 2	481,658		467,096	287,507	277,146
Accrued interest payable	Level 1	4,845		4,845	2,738	2,738

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no highly liquid market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax

ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company recorded total stock-based compensation expense of $1.1 million and $0.6 million for the three months ended June 30, 2023 and 2022, respectively, and $2.2 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively. In addition, the Company recognized $261,000 and $149,000 of income tax benefits related to stock-based compensation expense for the three months ended June 30, 2023 and 2022, respectively, and $520,000 and $275,000 for the six months ended June 30, 2023 and 2022, respectively.

At June 30, 2023, the sole equity-based compensation plan of the Company was the First Bancorp 2014 Equity Plan (the "Equity Plan"), which was approved by shareholders on May 8, 2014. As of June 30, 2023, the Equity Plan had 205,498 shares remaining available for grant.

The Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the plans' participants with those of the Company and its shareholders. The Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted stock, restricted performance stock, unrestricted stock, and performance units.

Recent equity awards to employees have been made in the form of shares of restricted stock awards with service vesting conditions only. Compensation expense for these awards is recorded over the requisite service periods. Upon forfeiture, any previously recognized compensation cost is reversed. Upon a change in control (as defined in the Equity Plan), unless the awards remain outstanding or substitute equivalent awards are provided, the awards become immediately vested.

Certain of the Company’s equity grants contain terms that provide for an annual or cliff vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company recognizes compensation expense for awards with vesting schedules on a straight-line basis over the requisite service period for each incremental award. Compensation expense is based on the estimated number of stock awards that will ultimately vest. Over the past five years, there have been insignificant amounts of forfeitures, and therefore the Company assumes that all awards granted with service conditions only will vest.

In addition to employee equity awards, the Company's practice is to grant common shares, valued at approximately $37,500 for the current year, to each non-employee director (currently 14 in total) in June of each year. Compensation expense associated with these director awards is recognized on the date of award since there are no vesting conditions.

The following table presents information regarding the activity for the first six months of 2023 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2023	223,012	$	36.14
Granted during the period	143,380	37.08
Vested during the period	(25,811)	24.52
Forfeited or expired during the period	(791)	37.88
Nonvested at June 30, 2023	339,790	$	37.15

Total unrecognized compensation expense as of June 30, 2023 amounted to $7.3 million with a weighted-average remaining term of 2.2 years. For the nonvested awards that are outstanding at June 30, 2023, the Company expects to record $4.0 million in compensation expense in the next 12 months, $2.4 million of which is expected to be recorded in the remaining quarters of 2023.

As discussed in Note 2, in conjunction with the GrandSouth acquisition, GrandSouth common stock options outstanding at January 1, 2023 became fully vested under the change in control provisions in the GrandSouth option plans and were converted into replacement options to acquire 0.91 shares of the Company's common stock.

Stock option activity and related information is presented below as of and for the periods indicated:

	Options Outstanding
	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value ($ in thousands)
Balance at January 1, 2023	—	$	—
Replacement options issued in conjunction with acquisition of GrandSouth	542,345	20.14
Exercised during the period	(192,178)	19.27
Forfeited or expired during the period	—	—
Outstanding at June 30, 2023	350,167	20.62		6.27	$	3,270
Exercisable at June 30, 2023	350,167	$	20.62	6.27	$	3,270

Stock options outstanding are summarized as follows as of June 30, 2023:

Shares	Range	Weighted Average Price	Weighted Average Remaining Life in Years
112,822	$13.79 - 18.18	15.63	4.65
121,320	$18.19	18.19	5.98
116,025	$18.20 - 31.32	28.00	8.16
350,167		20.62	6.27

In accordance with ASC 805-30, the fair value of the replacement options issued in conjunction with the GrandSouth acquisition as of January 1, 2023 was measured using the Black-Scholes option pricing model and the weighted average fair value of replacement options was $24.85.

The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted:

	For the Six Months Ended
	June 30, 2023
Fair value per option, weighted average	$	24.85
Expected life (years)	1.4 - 4.7
Expected stock price volatility, weighted average	46.39		%
Expected dividend yield	2.05		%
Risk-free interest rate, weighted average	4.18		%
Expected forfeiture rate	—		%

The expected life is based on historical exercises and forfeitures experience of the grantees. The volatility is based on historical price volatility. The risk-free interest rate is based on a U.S. Treasury instrument with a life that is similar to the expected life of the option grant.

At June 30, 2023, the Company had no unrecognized compensation expense related to stock options. All unexercised options expire 10 years after the applicable original grant dates under the GrandSouth stock option plan.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

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

	For the Three Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	29,403				$	36,585
Less: income allocated to restricted stock	(201)					(172)
Basic EPS per common share	$	29,202	40,721,840	$	0.72	$	36,413	35,474,664	$	1.03
Diluted EPS:
Net income	$	29,403	40,721,840			$	36,585	35,474,664
Effect of dilutive securities	—		407,260			—		167,807
Diluted EPS per common share	$	29,403	41,129,100	$	0.71	$	36,585	35,642,471	$	1.03
	Six Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	44,564				$	70,554
Less: income allocated to restricted stock	(299)					(326)
Basic EPS per common share	$	44,265	40,665,172	$	1.09	$	70,228	35,476,902	$	1.98
Diluted EPS:
Net income	$	44,564	40,665,172			$	70,554	35,476,902
Effect of dilutive securities	—		458,697			—		164,826
Diluted EPS per common share	$	44,564	41,123,869	$	1.08	$	70,554	35,641,728	$	1.98

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) ("AOCI") for the Company are as follows:

($ in thousands)	June 30, 2023		December 31, 2022
Unrealized loss on securities available for sale	$	(440,145)	(444,063)
Deferred tax asset	101,894		102,046
Net unrealized loss on securities available for sale	(338,251)		(342,017)
Postretirement plans liability	143		54
Deferred tax asset	(34)		(12)
Net postretirement plans liability	109		42
Total accumulated other comprehensive loss	$	(338,142)	(341,975)

The following tables disclose the changes in AOCI for the three and six months ended June 30, 2023 and 2022 (all amounts are net of tax):

	For the Three Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(314,109)	75	(314,034)
Other comprehensive loss before reclassifications	(24,142)		—	(24,142)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(24,142)		34	(24,108)
Ending balance	$	(338,251)	109	(338,142)
	For the Three Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(164,717)	(238)	(164,955)
Other comprehensive loss before reclassifications	(84,431)		—	(84,431)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(84,431)		34	(84,397)
Ending balance	$	(249,148)	(204)	(249,352)

	For the Six Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(342,017)	42	(341,975)
Other comprehensive gain before reclassifications	3,766		—	3,766
Amounts reclassified from accumulated other comprehensive income	—		67	67
Net current-period other comprehensive income	3,766		67	3,833
Ending balance	$	(338,251)	109	(338,142)
	For the Six Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(224,450)		—	(224,450)
Amounts reclassified from accumulated other comprehensive income	—		68	68
Net current-period other comprehensive (loss) income	(224,450)		68	(224,382)
Ending balance	$	(249,148)	(204)	(249,352)

Amounts reclassified from AOCI for unrealized gain (loss) on securities available for sale represent realized securities gains or losses, net of tax effects. There were no security sales in any period presented. Amounts reclassified from AOCI for postretirement plans asset (liability) represent amortization of amounts included in AOCI, net of taxes, and are recorded in the "Other operating expenses" line item of the Consolidated Statements of Income.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

All of the Company’s revenues that are in the scope of the “Revenue from Contracts with Customers” accounting standard (“ASC 606”) are recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended			For the Six Months Ended
($ in thousands)	June 30, 2023		June 30, 2022	June 30, 2023	June 30, 2022
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts	$	4,114	3,700	8,008	7,241
Other service charges and fees:
Bankcard interchange income, net	2,368		4,812	4,950	9,523
Other service charges and fees	3,255		1,490	6,572	2,753
Commissions from sales of financial products	1,413		1,151	2,719	2,096
SBA consulting fees	409		704	930	1,484
Noninterest income (in-scope of ASC 606)	11,559		11,857	23,179	23,097
Noninterest income (out-of-scope of ASC 606)	2,676		5,407	4,592	13,418
Total noninterest income	$	14,235	17,264	27,771	36,515

A description of the Company’s revenue streams accounted for under ASC 606 is detailed below.

Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Overdraft fees are recognized at the point in time that the overdraft occurs. Maintenance and activity fees include account maintenance fees and transaction-based fees. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, are recognized at the

time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Service charges on deposits are withdrawn from the customer’s account balance.

Other service charges and fees: The Company earns interchange income on its customers’ debit and credit card usage and earns fees from other services utilized by its customers. Interchange income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange fees are offset with interchange expenses and are presented on a net basis. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, ATM surcharge fees, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Commissions from the sales of financial products: The Company earns commissions from the sale of wealth management products which primarily consist of commissions received on financial product sales, such as annuities. The Company’s performance obligation is generally satisfied upon the issuance of the financial product. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company also earns some fees from asset management, which is billed quarterly for services rendered in the most recent period, for which the performance obligation has been satisfied.

SBA consulting fees: The Company earns fees for its consulting services related to the origination of SBA loans. Fees are based on a percentage of the dollar amount of the originated loans and are recorded when the performance obligation has been satisfied.

The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from the above-described contracts with customers.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 29,403	$ 36,585	$ 44,564	$ 70,554

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Organization and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of June 30, 2023, the consolidated results of operations for the three and six months ended June 30, 2023 and 2022, and the consolidated cash flows for the six months ended June 30, 2023 and 2022. Any such adjustments were of a normal, recurring nature. These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes in the Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for interim period are not necessarily indicative of the results that may be expected for the full year. Reference is made to Note 1 of the 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for a discussion of accounting policies and other relevant information with respect to the financial statements.

Accounting Standards Adopted in 2023 and Accounting Standards Pending Adoption

Accounting Standards Adopted in 2023

ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments contained in this Accounting Standards Update ("ASU") eliminate the accounting guidance for troubled debt restructurings ("TDR") by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This ASU also requires entities to disclose current period gross write-offs by year of origination for financing receivables. The Company adopted ASU 2022-02 effective January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. The impact of the adoption resulted in an immaterial change to the allowance for credit losses ("ACL"), thus no adjustment to retained earnings was recorded. Disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty as presented in Note 4. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, the current year vintage disclosure included in Note 4 has been updated to reflect gross charge-offs by year of origination for the six months ended June 30, 2023.

ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and, therefore, is not considered in measuring fair value. The Company adopted ASU 2022-03 January 1, 2023 with no material impact on its financial statements.

ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The objective of the guidance in Topic 848 was to provide relief during the temporary transition period and the FASB included a sunset provision based on expectations of when the London Interbank Offered Rate ("LIBOR") would cease being published. The United Kingdom Financial Conduct

Authority has announced that the intended LIBOR cessation date has been extended from December 31, 2021 to June 30, 2023. As such, ASU 2022-06 defers the sunset date previously set to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848; moreover, it applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2022-06 was adopted upon issuance. The Company will continue to elect various optional expedients for contract modifications affected by rate reference reform through the effective date of this guidance with no material effect on its financial statements.

Accounting Standards Pending Adoption

ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 is not expected to have a significant impact on the Company's consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair value of acquired assets, identified intangible assets, and liabilities assumed as of January 1, 2023. Following the table is a discussion of valuation approaches utilized in

estimating the fair values in accordance with ASC 805-10, "Business Combinations." The $114.5 million in goodwill that resulted from this transaction is non-deductible for tax purposes.

($ in thousands)	Fair Value Estimate
Assets acquired:
Cash and cash equivalents	$	22,610
Securities available for sale	112,363
Loans, gross	996,833
Allowance for loan losses	(5,610)
Premises and equipment	20,268
Core deposit intangible	28,840
Operating right-of-use lease assets	732
Other assets	27,163
Total	1,203,199
Liabilities assumed:
Deposits	1,045,308
Borrowings	38,800
Other liabilities	4,089
Total	1,088,197
Net identifiable assets acquired	115,002
Less: Total consideration	229,489
Goodwill recorded related to acquisition of GrandSouth	$	114,487

Acquired Loan Portfolio at Acquisition Date

The following table presents additional information related to the acquired loan portfolio at the acquisition date:

($ in thousands)	January 1, 2023
PCD Loans:
Par value	$	152,487
Allowance for credit losses	(5,610)
Non-credit discount	(1,370)
Purchase price	145,507
Non-PCD Loans:
Fair Value	845,716
Gross contractual amounts receivable	865,132
Estimate of contractual cash flows not expected to be collected	22,542

Pro Forma Combined Financial Results

Merger-related costs have been excluded from these

amounts and the provisions for credit loss amounts associated with non-PCD loans and unfunded commitments that were discussed above have also been excluded.

($ in thousands)	For the three months ended				For the six months ended
	June 30, 2023				June 30, 2023
	Revenue		Net Income		Revenue		Net Income
Actual GrandSouth results included in statement of income since acquisition date	$	13,767	$	5,132	$	29,307	$	10,951
($ in thousands)	For the three months ended				For the six months ended
	June 30, 2022				June 30, 2022
	Revenue		Net Income		Revenue		Net Income
Supplemental consolidated pro forma for the Company as if GrandSouth had been acquired on January 1, 2022	110,248		39,746		220,672		77,213

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Securities (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

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

The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:

($ in thousands)	June 30, 2023					December 31, 2022
	Amortized Cost		Fair Value	Unrealized		Amortized Cost	Fair Value	Unrealized
				Gains	(Losses)			Gains	(Losses)
Securities available for sale:
U.S. Treasuries	$	174,601	169,613	—	(4,988)	174,420	168,758	—	(5,662)
Government-sponsored enterprise securities	71,960		58,511	—	(13,449)	71,957	57,456	—	(14,501)
Mortgage-backed securities	2,393,696		1,973,539	1	(420,158)	2,467,839	2,045,000	4	(422,843)
Corporate bonds	19,674		18,123	—	(1,551)	44,340	43,279	—	(1,061)
Total available for sale	$	2,659,931	2,219,786	1	(440,146)	2,758,556	2,314,493	4	(444,067)
Securities held to maturity:
Mortgage-backed securities	$	13,502	12,610	—	(892)	15,150	14,221	—	(929)
State and local governments	524,319		429,271	6	(95,054)	526,550	418,307	7	(108,250)
Total held to maturity	$	537,821	441,881	6	(95,946)	541,700	432,528	7	(109,179)

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

The book values and approximate fair values of investment securities at June 30, 2023 and December 31, 2022 are summarized as follows:

($ in thousands)	June 30, 2023					December 31, 2022
	Amortized Cost		Fair Value	Unrealized		Amortized Cost	Fair Value	Unrealized
				Gains	(Losses)			Gains	(Losses)
Securities available for sale:
U.S. Treasuries	$	174,601	169,613	—	(4,988)	174,420	168,758	—	(5,662)
Government-sponsored enterprise securities	71,960		58,511	—	(13,449)	71,957	57,456	—	(14,501)
Mortgage-backed securities	2,393,696		1,973,539	1	(420,158)	2,467,839	2,045,000	4	(422,843)
Corporate bonds	19,674		18,123	—	(1,551)	44,340	43,279	—	(1,061)
Total available for sale	$	2,659,931	2,219,786	1	(440,146)	2,758,556	2,314,493	4	(444,067)
Securities held to maturity:
Mortgage-backed securities	$	13,502	12,610	—	(892)	15,150	14,221	—	(929)
State and local governments	524,319		429,271	6	(95,054)	526,550	418,307	7	(108,250)
Total held to maturity	$	537,821	441,881	6	(95,946)	541,700	432,528	7	(109,179)

Schedule of Information Regarding Securities with Unrealized Losses

The following table presents information regarding all securities with unrealized losses at June 30, 2023:

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Treasuries	$	—	—	169,613	4,988	169,613	4,988
Government-sponsored enterprise securities	—		—	58,511	13,449	58,511	13,449
Mortgage-backed securities	39,491		1,836	1,945,483	419,214	1,984,974	421,050
Corporate bonds	2,618		306	13,754	1,245	16,372	1,551
State and local governments	5,240		38	423,008	95,016	428,248	95,054
Total unrealized loss position	$	47,349	2,180	2,610,369	533,912	2,657,718	536,092

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

	Securities in an Unrealized Loss Position for Less than 12 Months			Securities in an Unrealized Loss Position for More than 12 Months		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
US Treasury securities	$	168,758	5,662	—	—	168,758	5,662
Government-sponsored enterprise securities	—		—	57,456	14,501	57,456	14,501
Mortgage-backed securities	221,006		18,215	1,835,958	405,557	2,056,964	423,772
Corporate bonds	40,644		947	886	114	41,530	1,061
State and local governments	48,385		8,323	368,897	99,927	417,282	108,250
Total unrealized loss position	$	478,793	33,147	2,263,197	520,099	2,741,990	553,246

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

The book values and approximate fair values of investment securities at June 30, 2023, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale			Securities Held to Maturity
($ in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	99,944	97,508	—	—
Due after one year but within five years	77,166		74,338	996	887
Due after five years but within ten years	88,125		73,458	92,917	77,987
Due after ten years	1,000		943	430,406	350,397
Mortgage-backed securities	2,393,696		1,973,539	13,502	12,610
Total securities	$	2,659,931	2,219,786	537,821	441,881

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

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Summary of Major Categories of Total Loans Outstanding

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

($ in thousands)	June 30, 2023				December 31, 2022
	Amount		Percentage		Amount		Percentage
Commercial and industrial	$	888,391	11	%	$	641,941	9	%
Construction, development & other land loans	1,109,769		14	%	934,176		14	%
Commercial real estate - owner occupied	1,222,189		16	%	1,036,270		16	%
Commercial real estate - non owner occupied	2,423,262		31	%	2,123,811		32	%
Multi-family real estate	392,120		5	%	350,180		5	%
Residential 1-4 family real estate	1,461,068		18	%	1,195,785		18	%
Home equity loans/lines of credit	334,566		4	%	323,726		5	%
Consumer loans	67,077		1	%	60,659		1	%
Subtotal	7,898,442		100	%	6,666,548		100	%
Unamortized net deferred loan fees	(813)				(1,403)
Total loans	$	7,897,629			$	6,665,145

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.

($ in thousands)	June 30, 2023		December 31, 2022
Guaranteed portions of SBA loans included in table above	$	39,339	31,893
Unguaranteed portions of SBA loans included in table above	114,643		116,910
Total SBA loans included in the table above	$	153,982	148,803
Sold portions of SBA loans with servicing retained - not included in tables above	$	371,943	392,370

Schedule of Nonperforming Assets and Nonaccrual Loans

The following table summarizes the NPAs for each period presented.

($ in thousands)	June 30, 2023		December 31, 2022
Nonaccrual loans	$	29,876	28,514
Modifications to borrowers in financial distress	4,862		—
TDRs - accruing	—		9,121
Total nonperforming loans	34,738		37,635
Foreclosed real estate	1,077		658
Total nonperforming assets	$	35,815	38,293

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2023:

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	—	11,299	11,299
Construction, development & other land loans	—		265	265
Commercial real estate - owner occupied	3,277		7,988	11,265
Commercial real estate - non owner occupied	673		1,153	1,826
Multi-family real estate	—		—	—
Residential 1-4 family real estate	—		3,198	3,198
Home equity loans/lines of credit	—		1,867	1,867
Consumer loans	—		156	156
Total	$	3,950	25,926	29,876

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

($ in thousands)	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance	Total Nonaccrual Loans
Commercial and industrial	$	3,855	6,374	10,229
Construction, development & other land loans	—		1,009	1,009
Commercial real estate - owner occupied	3,903		5,770	9,673
Commercial real estate - non owner occupied	1,107		1,725	2,832
Multi-family real estate	—		—	—
Residential 1-4 family real estate	157		3,132	3,289
Home equity loans/lines of credit	—		1,397	1,397
Consumer loans	—		85	85
Total	$	9,022	19,492	28,514

Summary of Accrued Interest Receivables Written Off

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

($ in thousands)	Six Months Ended June 30, 2023		For the Year Ended December 31, 2022	Six Months Ended June 30, 2022
Commercial and industrial	$	162	102	33
Construction, development & other land loans	2		16	16
Commercial real estate - owner occupied	64		123	100
Commercial real estate - non owner occupied	7		15	2
Multi-family real estate	—		1	—
Residential 1-4 family real estate	20		45	25
Home equity loans/lines of credit	16		20	6
Consumer loans	1		2	2
Total	$	272	324	184

Schedule of Analysis of Payment Status

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2023:

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	702	1,127	—	11,299	875,263	888,391
Construction, development & other land loans	585		22	—	265	1,108,897	1,109,769
Commercial real estate - owner occupied	525		400	—	11,265	1,209,999	1,222,189
Commercial real estate - non owner occupied	61		634	—	1,826	2,420,741	2,423,262
Multi-family real estate	—		—	—	—	392,120	392,120
Residential 1-4 family real estate	1,027		1,814	—	3,198	1,455,029	1,461,068
Home equity loans/lines of credit	550		673	—	1,867	331,476	334,566
Consumer loans	229		56	—	156	66,636	67,077
Total	$	3,679	4,726	—	29,876	7,860,161	7,898,442
Unamortized net deferred loan fees							(813)
Total loans							7,897,629

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

($ in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due	Accruing 90 Days or More Past Due	Nonaccrual Loans	Accruing Current	Total Loans Receivable
Commercial and industrial	$	438	565	—	10,229	630,709	641,941
Construction, development & other land loans	238		1,687	—	1,009	931,242	934,176
Commercial real estate - owner occupied	124		48	—	9,673	1,026,425	1,036,270
Commercial real estate - non owner occupied	496		49	—	2,832	2,120,434	2,123,811
Multi-family real estate	—		—	—	—	350,180	350,180
Residential 1-4 family real estate	3,415		25	—	3,289	1,189,056	1,195,785
Home equity loans/lines of credit	457		371	—	1,397	321,501	323,726
Consumer loans	249		66	—	85	60,259	60,659
Total	$	5,417	2,811	—	28,514	6,629,806	6,666,548
Unamortized net deferred loan fees							(1,403)
Total loans							$	6,665,145

Analysis of Collateral-Dependent Loans

The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2023:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	1,626	—	—	1,626
Commercial real estate - owner occupied	—		—	—	5,830	5,830
Commercial real estate - non owner occupied	—		—	—	673	673
Total	$	—	1,626	—	6,503	8,129

The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2022:

($ in thousands)	Residential Property		Business Assets	Land	Commercial Property	Total Collateral-Dependent Loans
Commercial and industrial	$	—	6,394	—	—	6,394
Commercial real estate - owner occupied	—		—	—	4,578	4,578
Commercial real estate - non owner occupied	—		—	—	2,145	2,145
Residential 1-4 family real estate	157		—	—	—	157
Total	$	157	6,394	—	6,723	13,274

Schedule of Allowance for Loan Losses

The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the CECL model, and as occurred in 2023, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the six months ended June 30, 2023 is attributed to the acquisition of GrandSouth. In addition to the "Day 1" allowance recorded for PCD loans of $5.6 million, the Company recorded a "Day 2" initial provision of $12.2 million related to the non-PCD loans in the GrandSouth portfolio. The balance of the change was a result of updated economic forecast inputs to our CECL model driving higher loss rate assumptions, primarily due to some deterioration in the commercial real estate index.

($ in thousands)	Beginning balance		"Day 1" ACL for acquired PCD loans	Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2023
Commercial and industrial	$	23,073	—	(1,534)	492	1,411	23,442
Construction, development & other land loans	18,986		—	—	158	(667)	18,477
Commercial real estate - owner occupied	16,082		—	—	34	265	16,381
Commercial real estate - non owner occupied	25,990		—	—	38	246	26,274
Multi-family real estate	3,204		—	—	3	739	3,946
Residential 1-4 family real estate	12,285		—	—	79	1,941	14,305
Home equity loans/lines of credit	3,481		—	—	40	196	3,717
Consumer loans	3,295		—	(217)	41	(431)	2,688
Total	$	106,396	—	(1,751)	885	3,700	109,230
As of and for the six months ended June 30, 2023
Commercial and industrial	$	17,718	5,197	(3,711)	766	3,472	23,442
Construction, development & other land loans	15,128		49	—	223	3,077	18,477
Commercial real estate - owner occupied	14,972		191	—	70	1,148	16,381
Commercial real estate - non owner occupied	22,780		51	(235)	432	3,246	26,274
Multi-family real estate	2,957		—	—	7	982	3,946
Residential 1-4 family real estate	11,354		113	—	225	2,613	14,305
Home equity loans/lines of credit	3,158		8	(2)	74	479	3,717
Consumer loans	2,900		1	(424)	77	134	2,688
Total	$	90,967	5,610	(4,372)	1,874	15,151	109,230

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the year ended December 31, 2022
Commercial and industrial	$	16,249	(2,519)	756	3,232	17,718
Construction, development & other land loans	16,519		—	480	(1,871)	15,128
Commercial real estate - owner occupied	12,317		(214)	691	2,178	14,972
Commercial real estate - non owner occupied	16,789		(849)	1,281	5,559	22,780
Multi-family real estate	1,236		—	11	1,710	2,957
Residential 1-4 family real estate	8,686		—	17	2,651	11,354
Home equity loans/lines of credit	4,337		(43)	600	(1,736)	3,158
Consumer loans	2,656		(840)	207	877	2,900
Total	$	78,789	(4,465)	4,043	12,600	90,967

($ in thousands)	Beginning balance		Charge-offs	Recoveries	Provisions / (Reversals)	Ending balance
As of and for the three months ended June 30, 2022
Commercial and industrial	$	16,013	(728)	223	(58)	15,450
Construction, development & other land loans	16,057		—	130	(16)	16,171
Commercial real estate - owner occupied	15,274		(18)	529	(864)	14,921
Commercial real estate - non owner occupied	19,440		(800)	768	716	20,124
Multi-family real estate	2,613		—	3	(467)	2,149
Residential 1-4 family real estate	8,159		—	11	480	8,650
Home equity loans/lines of credit	2,074		—	128	(116)	2,086
Consumer loans	2,439		(214)	80	325	2,630
Total	$	82,069	(1,760)	1,872	—	82,181
As of and for the six months ended June 30, 2022
Commercial and industrial	$	16,249	(1,518)	470	249	15,450
Construction, development & other land loans	16,519		—	267	(615)	16,171
Commercial real estate - owner occupied	12,317		(18)	560	2,062	14,921
Commercial real estate - non owner occupied	16,789		(845)	889	3,291	20,124
Multi-family real estate	1,236		—	6	907	2,149
Residential 1-4 family real estate	8,686		—	15	(51)	8,650
Home equity loans/lines of credit	4,337		(41)	361	(2,571)	2,086
Consumer loans	2,656		(381)	127	228	2,630
Total	$	78,789	(2,803)	2,695	3,500	82,181

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the six months ended June 30, 2023 and 2022 and for the twelve months ended December 31, 2022:

($ in thousands)	June 30, 2023		December 31, 2022	June 30, 2022
Beginning balance	$	13,306	13,506	13,506
"Day 2" provision for credit losses on unfunded commitments acquired from GrandSouth	1,921		—	—
Charge-offs	—		—	—
Recoveries	—		—	—
Reversal of provision for unfunded commitments	(2,209)		(200)	(1,500)
Ending balance	$	13,018	13,306	12,006

Schedule of Recorded Investment in Loans by Credit Quality Indicators

The following describes the Company’s internal risk grades in ascending order of likelihood of loss:

	Risk Grade	Description
Pass:
	1	Loans with virtually no risk, including cash secured loans.
	2	Loans with documented significant overall financial strength.  These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
	3	Loans with documented satisfactory overall financial strength.  These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
	4	Loans to borrowers with acceptable financial condition.  These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.
	5	Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management.  Collateral is generally required and felt to provide reasonable coverage with realizable liquidation values in normal circumstances.  Repayment performance is satisfactory.
	P (Pass)	Consumer loans that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels.  These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.
Special Mention:
	6	Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank.
Classified:
	7	An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any.  These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
	8	Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
	9	Loans that are considered uncollectible and are in the process of being charged-off.  This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
	F (Fail)	Consumer loans with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.

In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.

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

	Term Loans by Year of Origination
($ in thousands)	2023		2022	2021	2020	2019	Prior	Revolving	Total
As of June 30, 2023
Commercial and industrial
Pass	$	74,660	181,469	115,551	84,957	48,034	67,670	298,082	870,423
Special Mention	347		486	335	502	1,094	889	1,068	4,721
Classified	297		1,244	1,991	1,601	1,252	5,274	1,588	13,247
Total commercial and industrial	75,304		183,199	117,877	87,060	50,380	73,833	300,738	888,391
Gross charge-offs, YTD	—		146	696	32	556	764	1,517	3,711
Construction, development & other land loans
Pass	310,613		466,562	214,178	22,440	15,743	9,253	67,372	1,106,161
Special Mention	387		2,212	—	22	—	99	23	2,743
Classified	404		104	81	8	16	228	24	865
Total construction, development & other land loans	311,404		468,878	214,259	22,470	15,759	9,580	67,419	1,109,769
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - owner occupied
Pass	93,809		316,395	325,281	210,414	101,728	123,372	17,491	1,188,490
Special Mention	730		279	720	3,798	5,949	5,850	635	17,961
Classified	425		3,128	1,749	267	2,443	7,636	90	15,738
Total commercial real estate - owner occupied	94,964		319,802	327,750	214,479	110,120	136,858	18,216	1,222,189
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Commercial real estate - non owner occupied
Pass	263,968		750,657	781,011	326,322	144,933	115,805	23,895	2,406,591
Special Mention	373		218	40	4,604	1,348	6,087	—	12,670
Classified	96		1,090	16	—	1,425	1,374	—	4,001
Total commercial real estate - non owner occupied	264,437		751,965	781,067	330,926	147,706	123,266	23,895	2,423,262
Gross charge-offs, YTD	—		—	235	—	—	—	—	235
Multi-family real estate
Pass	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	35,169		146,618	135,882	45,914	12,650	11,561	4,326	392,120
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Residential 1-4 family real estate
Pass	153,127		393,590	318,229	198,500	98,969	281,467	1,715	1,445,597
Special Mention	697		44	196	151	607	2,036	19	3,750
Classified	312		245	374	811	436	8,928	615	11,721
Total residential 1-4 family real estate	154,136		393,879	318,799	199,462	100,012	292,431	2,349	1,461,068
Gross charge-offs, YTD	—		—	—	—	—	—	—	—
Home equity loans/lines of credit
Pass	1,770		3,404	1,275	298	606	1,752	315,797	324,902
Special Mention	223		—	120	—	—	17	77	437
Classified	107		66	151	93	98	125	8,587	9,227
Total home equity loans/lines of credit	2,100		3,470	1,546	391	704	1,894	324,461	334,566
Gross charge-offs, YTD	—		—	—	—	—	—	2	2
Consumer loans
Pass	9,298		16,548	6,956	3,097	808	826	28,963	66,496
Special Mention	—		—	—	—	—	—	—	—
Classified	233		146	77	13	5	12	95	581
Total consumer loans	9,531		16,694	7,033	3,110	813	838	29,058	67,077
Gross charge-offs, YTD	5		8	22	3	—	—	386	424
Total loans	$	947,045	2,284,505	1,904,213	903,812	438,144	650,261	770,462	7,898,442
Unamortized net deferred loan fees									(813)
Total loans, net of deferred loan fees									7,897,629
Total gross charge-offs, year to date	$	5	154	953	35	556	764	1,905	4,372

	Term Loans by Year of Origination
($ in thousands)	2022		2021	2020	2019	2018	Prior	Revolving	Total
As of December 31, 2022
Commercial and industrial
Pass	$	185,167	107,747	85,110	51,274	590	76,588	120,590	627,066
Special Mention	342		166	648	1,312	—	990	332	3,790
Classified	734		1,909	808	1,384	—	5,762	488	11,085
Total commercial and industrial	186,243		109,822	86,566	53,970	590	83,340	121,410	641,941
Construction, development & other land loans
Pass	550,752		267,096	42,421	30,973	—	12,722	19,519	923,483
Special Mention	5,128		5	3,679	—	—	100	13	8,925
Classified	656		107	38	899	—	44	24	1,768
Total construction, development & other land loans	556,536		267,208	46,138	31,872	—	12,866	19,556	934,176
Commercial real estate - owner occupied
Pass	258,025		305,324	190,464	96,495	179	141,053	15,499	1,007,039
Special Mention	1,170		1,070	4,042	6,926	—	3,277	665	17,150
Classified	3,060		208	84	1,572	—	6,790	367	12,081
Total commercial real estate - owner occupied	262,255		306,602	194,590	104,993	179	151,120	16,531	1,036,270
Commercial real estate - non owner occupied
Pass	718,696		747,653	319,708	141,284	—	168,096	21,159	2,116,596
Special Mention	545		44	394	1,363	—	1,180	—	3,526
Classified	420		1,057	—	884	—	1,328	—	3,689
Total commercial real estate - non owner occupied	719,661		748,754	320,102	143,531	—	170,604	21,159	2,123,811
Multi-family real estate
Pass	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Special Mention	—		—	—	—	—	—	—	—
Classified	—		—	—	—	—	—	—	—
Total multi-family real estate	119,922		133,701	59,452	9,669	—	15,212	12,224	350,180
Residential 1-4 family real estate
Pass	317,282		274,756	186,102	98,559	185	301,885	1,379	1,180,148
Special Mention	1,189		127	110	470	—	2,416	—	4,312
Classified	763		251	221	359	—	9,072	659	11,325
Total residential 1-4 family real estate	319,234		275,134	186,433	99,388	185	313,373	2,038	1,195,785
Home equity loans/lines of credit
Pass	869		1,091	349	237	—	2,020	309,786	314,352
Special Mention	175		—	—	—	—	18	1,072	1,265
Classified	106		156	94	87	—	213	7,453	8,109
Total home equity loans/lines of credit	1,150		1,247	443	324	—	2,251	318,311	323,726
Consumer loans
Pass	35,406		7,946	3,610	1,056	3	1,250	10,953	60,224
Special Mention	—		—	—	—	—	—	—	—
Classified	320		31	3	1	—	25	55	435
Total consumer loans	35,726		7,977	3,613	1,057	3	1,275	11,008	60,659
Total loans	$	2,200,727	1,850,445	897,337	444,804	957	750,041	522,237	6,666,548
Unamortized net deferred loan fees									(1,403)
Total loans, net of deferred loan fees									6,665,145

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

The followings tables present the amortized cost basis at June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted. Percentages labeled as "NM" are not measurable to the class of financing receivable, as they are less than 0.1% of the total class.

($ in thousands)	Payment Delay		Term Extension	Combination - Interest Rate Reduction and Term Extension	Total	Percent of Total Class of Loans
As of and for the three months ended June 30, 2023
Commercial and industrial	$	1,363	30	—	1,393	0.16	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Residential 1-4 family real estate	—		469	—	469	0.03	%
Home equity loans/lines of credit	—		1,317	—	1,317	0.39	%
Total	$	1,551	2,103	—	3,654	0.05	%
As of and for the six months ended June 30, 2023
Commercial and industrial	$	1,513	105	—	1,618	0.18	%
Construction, development & other land loans	—		502	12	514	0.05	%
Commercial real estate - owner occupied	188		287	—	475	0.04	%
Commercial real estate - non owner occupied	—		96	—	96	NM
Residential 1-4 family real estate	—		515	—	515	0.04	%
Home equity loans/lines of credit	—		1,416	—	1,416	0.42	%
Consumer loans	—		228	—	228	0.34	%
Total	$	1,701	3,149	12	4,862	0.06	%

For the three and six months ended June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.

The following tables describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:

	Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
	Weighted Average Interest Rate Reduction	Weighted Average Payment Delay (in months)	Weighted Average Term Extension (in months)
For the three months ended June 30, 2023
Commercial and industrial	—%	2	25
Commercial real estate - owner occupied	—%	12	49
Residential 1-4 family real estate	—%	0	25
Home equity loans/lines of credit	—%	0	42
For the six months ended June 30, 2023
Commercial and industrial	—%	2	13
Construction, development & other land loans	1.50%	0	7
Commercial real estate - owner occupied	—%	12	49
Commercial real estate - non owner occupied	—%	0	15
Residential 1-4 family real estate	—%	0	24
Home equity loans/lines of credit	—%	0	40
Consumer loans	—%	0	6

The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:

	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-59 Days Past Due	60-89 Days Past Due	90+ Days Past Due
Commercial and industrial	$	1,618	—	—	—
Construction, development & other land loans	514		—	—	—
Commercial real estate - owner occupied	475		—	—	—
Commercial real estate - non owner occupied	96		—	—	—
Multi-family real estate	—		—	—	—
Residential 1-4 family real estate	345		—	170	—
Home equity loans/lines of credit	1,416		—	—	—
Consumer loans	228		—	—	—
	$	4,692	—	170	—

Summary of Troubled Debt Restructuring

The following table presents information related to loans modified in a TDR during the three and six months ended June 30, 2022.

	For the three months ended June 30, 2022				For the six months ended June 30, 2022
($ in thousands)	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances	Number of Contracts	Pre-Modification Restructured Balances		Post-Modification Restructured Balances
TDRs - Accruing
Commercial and industrial	1	$	161	161	1	$	161	161
Construction, development & other land loans	1	131		131	1	131		131
Residential 1-4 family real estate	—	—		—	1	36		36
Home equity loans/lines of credit	2	203		203	2	203		203
TDRs - Nonaccrual
Commercial and industrial	2	259		259	3	300		300
Commercial real estate - owner occupied	1	244		244	2	784		784
Residential 1-4 family real estate	—	—		—	1	36		36
Total TDRs arising during period	7	$	998	998	11	$	1,651	1,651

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.

	June 30, 2023			December 31, 2022
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	2,007	2,700	1,847
Core deposit intangibles	57,890		25,296	29,050	21,274
Other intangibles	100		71	100	58
Intangibles before servicing assets	60,690		27,374	31,850	23,179
SBA servicing assets	13,536		9,755	13,264	9,260
Total amortizable intangible assets	$	74,226	37,129	45,114	32,439
Unamortizable intangible assets:
Goodwill	$	478,750		364,263

SBA Servicing Assets

The following table presents the changes in the SBA servicing assets and SBA servicing income for the three and six months ended June 30, 2023 and 2022:

	Three months ended June 30,			Six months ended June 30,
($ in thousands)	2023		2022	2023	2022
Beginning balance, net	$	3,897	5,591	4,004	5,472
Add: New servicing assets	195		281	271	1,026
Less: Amortization and impairment expense	311		905	494	1,531
Ending balance, net	$	3,781	4,967	3,781	4,967
SBA guaranteed servicing income	$	863	992	1,847	1,781

Schedule of the Estimated Amortization Expense

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

($ in thousands)	Estimated Amortization Expense
July 1, 2023 to December 31, 2023	$	3,808
2024	6,604
2025	5,672
2026	4,705
2027	3,951
Thereafter	8,576
Total	$	33,316

Schedule of Goodwill

The following table presents the changes in carrying amounts of goodwill:

($ in thousands)	Total Goodwill
Balance at December 31, 2021	$	364,263
Net activity during 2022	—
Balance at December 31, 2022	364,263
Additions from acquisition of GrandSouth	114,487
Balance at June 30, 2023	$	478,750

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Borrowings (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following tables present information regarding the Company’s outstanding borrowings at June 30, 2023 and December 31, 2022 (dollars in thousands):

Description	Due date	Call Feature	June 30, 2023		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	8	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	891		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	208		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	34		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	155		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	322		0.50% fixed
FHLB Daily Rate Credit	7/13/2023	None	75,000		5.24% fixed
FHLB Fixed Rate Credit	9/13/2023	None	300,000		5.17% fixed
FHLB Fixed Rate Hybrid	9/29/2023	None	5,000		0.40% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.95% at 6/30/23 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		8.05% at 6/30/23 adjustable rate  3 month LIBOR + 2.75%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		7.66% at 6/30/23 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		7.26% at 6/30/23 adjustable rate 3 month LIBOR + 2.00%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.26% at 6/30/23 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	6/23/2036	Quarterly by the Company beginning 6/23/2011	8,248		7.39% at 6/30/23 adjustable rate 3 month LIBOR + 1.85%
Subordinated Debentures	11/30/2028	Semi-annually by Company beginning 11/30/2023	10,000		6.50% fixed
Subordinated Debentures	11/15/2030	Semi-annually by Company beginning 11/15/2025	18,000		4.38% fixed
Total borrowings / weighted average rate as of June 30, 2023			487,097		5.44%
Unamortized discount on acquired borrowings			(5,439)
Total borrowings			$	481,658

As discussed in Note 1, with the June 30, 2023 cessation of LIBOR, the index for the interest rates on the Company's trust preferred securities will automatically convert to the 3-month CME Term SOFR plus a spread intended to approximate the current interest rate. No material impact on the Company's financial statements is anticipated upon the next interest rate reset based on the SOFR index.

Description	Due date	Call Feature	December 31, 2022		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	32	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	912		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	214		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	38		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	158		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	159		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	329		0.50% fixed
FHLB Daily Rate Credit	8/23/2023	None	40,000		4.57% fixed
FHLB Fixed Rate Credit	1/9/2023	None	50,000		4.15% fixed
FHLB Fixed Rate Credit	2/1/2023	None	80,000		4.25% fixed
FHLB Fixed Rate Credit	2/9/2023	None	50,000		4.35% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.06% at 12/31/22 adjustable rate 3 month LIBOR + 2.65%
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	10,310		7.16% at 12/31/22 adjustable rate 3 month LIBOR + 2.75%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		6.16% at 12/31/22 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		6.90% at 12/31/22 adjustable rate 3 month LIBOR + 2.15%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		6.08% at 12/31/22 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2022			290,918		4.82%
Unamortized discount on acquired borrowings			(3,411)
Total borrowings			$	287,507

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

Lessee Disclosure [Abstract]

Schedule of Estimated Lease Payments

Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows.

($ in thousands)
July 1, 2023 to December 31, 2023	$	1,180
2024	2,163
2025	1,706
2026	1,685
2027	1,547
Thereafter	18,441
Total undiscounted lease payments	26,722
Less effect of discounting	(7,613)
Present value of estimated lease payments (lease liability)	$	19,109

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Pension Plans (Tables)

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of the Components of Pension Costs

The following table contains the components of the pension cost:

	For the Three Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	266		28	294	267	28	295
Expected return on plan assets	(288)		—	(288)	(288)	—	(288)
Amortization of net loss (gain)	180		(136)	44	180	(136)	44
Net periodic pension cost	$	158	(108)	50	159	(108)	51
	For the Six Months Ended June 30,
	2023				2022
($ in thousands)	Pension Plan		SERP	Total Both Plans	Pension Plan	SERP	Total Both Plans
Service cost	$	—	—	—	—	—	—
Interest cost	533		56	589	534	56	590
Expected return on plan assets	(576)		—	(576)	(576)	—	(576)
Amortization of net (gain)/loss	360		(272)	88	360	(272)	88
Net periodic pension cost	$	317	(216)	101	318	(216)	102

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring and Nonrecurring Basis

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2023:

($ in thousands) Description of Financial Instruments	Fair Value at June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
U.S. Treasury	$	169,613	—	169,613	—
Government-sponsored enterprise securities	58,511		—	58,511	—
Mortgage-backed securities	1,973,539		—	1,973,539	—
Corporate bonds	18,123		—	18,123	—
Total available for sale securities	$	2,219,786	—	2,219,786	—
Presold mortgages in process of settlement	$	4,953	4,953	—	—
Nonrecurring
Individually evaluated loans	$	2,399	—	—	2,399

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2022:

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
US Treasury securities	$	168,758	—	168,758	—
Government-sponsored enterprise securities	57,456		—	57,456	—
Mortgage-backed securities	2,045,000		—	2,045,000	—
Corporate bonds	43,279		—	43,279	—
Total available for sale securities	$	2,314,493	—	2,314,493	—
Presold mortgages in process of settlement	$	1,282	1,282	—	—
Nonrecurring
Individually evaluated loans	$	9,590	—	—	9,590
Foreclosed real estate	38		—	—	38

Schedule of Significant Unobservable Inputs

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	2,399	Appraised value	Discounts applied for estimated costs to sell	10%

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

($ in thousands)	Fair Value at December 31, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	5,680	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	3,910		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	5.5%-11.1% (6.76%)
Foreclosed real estate	38		Appraised value	Discounts applied for estimated costs to sell	10%

Schedule of the Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2023 and December 31, 2022 were as follows:

		June 30, 2023			December 31, 2022
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value	Carrying Amount	Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1	$	101,215	101,215	101,133	101,133
Due from banks, interest-bearing	Level 1	259,460		259,460	169,185	169,185
Securities held to maturity	Level 2	537,821		441,881	541,700	432,528
Total loans, net of allowance	Level 3	7,788,399		7,339,310	6,574,178	6,240,870
Accrued interest receivable	Level 1	33,446		33,446	29,710	29,710
Bank-owned life insurance	Level 1	181,659		181,659	164,592	164,592
SBA Servicing Asset	Level 3	3,781		4,664	4,004	4,721
Deposits	Level 2	10,168,569		10,156,818	9,227,529	9,218,945
Borrowings	Level 2	481,658		467,096	287,507	277,146
Accrued interest payable	Level 1	4,845		4,845	2,738	2,738

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Outstanding Restricted Stock

The following table presents information regarding the activity for the first six months of 2023 related to the Company’s outstanding restricted stock awards:

	Long-Term Restricted Stock Awards
	Number of Units	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2023	223,012	$	36.14
Granted during the period	143,380	37.08
Vested during the period	(25,811)	24.52
Forfeited or expired during the period	(791)	37.88
Nonvested at June 30, 2023	339,790	$	37.15

Schedule of Stock Options Roll Forward

Stock option activity and related information is presented below as of and for the periods indicated:

	Options Outstanding
	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value ($ in thousands)
Balance at January 1, 2023	—	$	—
Replacement options issued in conjunction with acquisition of GrandSouth	542,345	20.14
Exercised during the period	(192,178)	19.27
Forfeited or expired during the period	—	—
Outstanding at June 30, 2023	350,167	20.62		6.27	$	3,270
Exercisable at June 30, 2023	350,167	$	20.62	6.27	$	3,270

Schedule of Stock Option Assumptions

The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted:

	For the Six Months Ended
	June 30, 2023
Fair value per option, weighted average	$	24.85
Expected life (years)	1.4 - 4.7
Expected stock price volatility, weighted average	46.39		%
Expected dividend yield	2.05		%
Risk-free interest rate, weighted average	4.18		%
Expected forfeiture rate	—		%

Summary of Stock Options

Stock options outstanding are summarized as follows as of June 30, 2023:

Shares	Range	Weighted Average Price	Weighted Average Remaining Life in Years
112,822	$13.79 - 18.18	15.63	4.65
121,320	$18.19	18.19	5.98
116,025	$18.20 - 31.32	28.00	8.16
350,167		20.62	6.27

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Reconciliation of the Numerators and Denominators Used in Computing Basic and Diluted Earnings Per Common Share

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

	For the Three Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	29,403				$	36,585
Less: income allocated to restricted stock	(201)					(172)
Basic EPS per common share	$	29,202	40,721,840	$	0.72	$	36,413	35,474,664	$	1.03
Diluted EPS:
Net income	$	29,403	40,721,840			$	36,585	35,474,664
Effect of dilutive securities	—		407,260			—		167,807
Diluted EPS per common share	$	29,403	41,129,100	$	0.71	$	36,585	35,642,471	$	1.03
	Six Months Ended June 30,
	2023					2022
($ in thousands except per share amounts)	Income (Numerator)		Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	44,564				$	70,554
Less: income allocated to restricted stock	(299)					(326)
Basic EPS per common share	$	44,265	40,665,172	$	1.09	$	70,228	35,476,902	$	1.98
Diluted EPS:
Net income	$	44,564	40,665,172			$	70,554	35,476,902
Effect of dilutive securities	—		458,697			—		164,826
Diluted EPS per common share	$	44,564	41,123,869	$	1.08	$	70,554	35,641,728	$	1.98

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) ("AOCI") for the Company are as follows:

($ in thousands)	June 30, 2023		December 31, 2022
Unrealized loss on securities available for sale	$	(440,145)	(444,063)
Deferred tax asset	101,894		102,046
Net unrealized loss on securities available for sale	(338,251)		(342,017)
Postretirement plans liability	143		54
Deferred tax asset	(34)		(12)
Net postretirement plans liability	109		42
Total accumulated other comprehensive loss	$	(338,142)	(341,975)

The following tables disclose the changes in AOCI for the three and six months ended June 30, 2023 and 2022 (all amounts are net of tax):

	For the Three Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(314,109)	75	(314,034)
Other comprehensive loss before reclassifications	(24,142)		—	(24,142)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(24,142)		34	(24,108)
Ending balance	$	(338,251)	109	(338,142)
	For the Three Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(164,717)	(238)	(164,955)
Other comprehensive loss before reclassifications	(84,431)		—	(84,431)
Amounts reclassified from accumulated other comprehensive income	—		34	34
Net current period other comprehensive (loss) income	(84,431)		34	(84,397)
Ending balance	$	(249,148)	(204)	(249,352)

	For the Six Months Ended June 30, 2023
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(342,017)	42	(341,975)
Other comprehensive gain before reclassifications	3,766		—	3,766
Amounts reclassified from accumulated other comprehensive income	—		67	67
Net current-period other comprehensive income	3,766		67	3,833
Ending balance	$	(338,251)	109	(338,142)
	For the Six Months Ended June 30, 2022
($ in thousands)	Unrealized Loss on Securities Available for Sale		Postretirement Plans Asset (Liability)	Total
Beginning balance	$	(24,698)	(272)	(24,970)
Other comprehensive loss before reclassifications	(224,450)		—	(224,450)
Amounts reclassified from accumulated other comprehensive income	—		68	68
Net current-period other comprehensive (loss) income	(224,450)		68	(224,382)
Ending balance	$	(249,148)	(204)	(249,352)

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Noninterest Income

The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such.

	For the Three Months Ended			For the Six Months Ended
($ in thousands)	June 30, 2023		June 30, 2022	June 30, 2023	June 30, 2022
Noninterest Income: In-scope of ASC 606:
Service charges on deposit accounts	$	4,114	3,700	8,008	7,241
Other service charges and fees:
Bankcard interchange income, net	2,368		4,812	4,950	9,523
Other service charges and fees	3,255		1,490	6,572	2,753
Commissions from sales of financial products	1,413		1,151	2,719	2,096
SBA consulting fees	409		704	930	1,484
Noninterest income (in-scope of ASC 606)	11,559		11,857	23,179	23,097
Noninterest income (out-of-scope of ASC 606)	2,676		5,407	4,592	13,418
Total noninterest income	$	14,235	17,264	27,771	36,515

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Organization and Basis of Presentation (Details)	Jun. 30, 2023 subsidiary
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of subsidiaries	3

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Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands		3 Months Ended			6 Months Ended			12 Months Ended
	Jan. 01, 2023 USD ($) option branchOffice $ / shares shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Price per share, at acquisition date | $ / shares	$ 42.84
Goodwill		$ 478,750			$ 478,750			$ 364,263	$ 364,263
Merger and acquisition expenses		1,334		$ 737	13,516	$ 4,221
Provision for credit losses		$ 3,700		0	15,151	3,500		$ 12,600
Unfunded Loan Commitment
Business Acquisition [Line Items]
Provision for credit losses			$ (200)		$ (2,209)		$ (1,500)
Core deposit intangibles
Business Acquisition [Line Items]
Useful life		10 years			10 years
GrandSouth
Business Acquisition [Line Items]
Common stock portion, number of First Bancorp's stock for each share of acquiree common stock converted (in shares) | shares	0.91
Number of shares issued | shares	5,032,834
Common stock options converted | option	542,345
Business acquisition, equity interest issued or issuable, common stock options, converted, exercise price (in dollars per share) | $ / shares	$ 20.14
Total consideration	$ 229,489
Number of locations | branchOffice	8
Goodwill	$ 114,487
Fair value mark	29,500
Allowance for loan losses	5,610
Merger and acquisition expenses		$ 1,300			$ 13,500
Allowance for loan losses				$ 100		$ 400
Allowance for credit loss, increase from acquisition, non-PCD	12,200
GrandSouth | Unfunded Loan Commitment
Business Acquisition [Line Items]
Provision for credit losses	$ 1,900		$ 0		$ 1,921		$ 0
GrandSouth | Core deposit intangibles
Business Acquisition [Line Items]
Useful life	10 years
Weighted average useful life	41 months

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Acquisitions - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Liabilities assumed:
Goodwill		$ 478,750	$ 364,263	$ 364,263
GrandSouth
Assets acquired:
Cash and cash equivalents	$ 22,610
Securities available for sale	112,363
Loans, gross	996,833
Allowance for loan losses	5,610
Premises and equipment	20,268
Core deposit intangible	28,840
Operating right-of-use lease assets	732
Other assets	27,163
Total	1,203,199
Liabilities assumed:
Deposits	1,045,308
Borrowings	38,800
Other liabilities	4,089
Total	1,088,197
Net identifiable assets acquired	115,002
Total consideration	229,489
Goodwill	$ 114,487

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Acquisitions - Acquired Loans (Details) - GrandSouth $ in Thousands	Jan. 01, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par value	$ 152,487
Allowance for loan losses	(5,610)
Non-credit discount	(1,370)
Purchase price	145,507
Non-PCD Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair Value	845,716
Gross contractual amounts receivable	865,132
Estimate of contractual cash flows not expected to be collected	$ 22,542

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Acquisitions - Summary of Proforma Combined (Details) - GrandSouth - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Pro forma revenue of acquiree since acquisition Date	$ 13,767		$ 29,307
Pro forma revenue		$ 110,248		$ 220,672
Pro forma net income of acquiree since acquisition date	$ 5,132		$ 10,951
Pro forma net income		$ 39,746		$ 77,213

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Securities (Summary of Book Values and Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Amortized Cost	$ 2,659,931	$ 2,758,556
Fair Value	2,219,786	2,314,493
Unrealized gains	1	4
Unrealized (losses)	(440,146)	(444,067)
Securities held to maturity:
Amortized Cost	537,821	541,700
Fair Value	441,881	432,528
Unrealized gains	6	7
Unrealized (losses)	(95,946)	(109,179)
U.S. Treasuries
Fair Value
Amortized Cost	174,601	174,420
Fair Value	169,613	168,758
Unrealized gains	0	0
Unrealized (losses)	(4,988)	(5,662)
Government-sponsored enterprise securities
Fair Value
Amortized Cost	71,960	71,957
Fair Value	58,511	57,456
Unrealized gains	0	0
Unrealized (losses)	(13,449)	(14,501)
Mortgage-backed securities
Fair Value
Amortized Cost	2,393,696	2,467,839
Fair Value	1,973,539	2,045,000
Unrealized gains	1	4
Unrealized (losses)	(420,158)	(422,843)
Securities held to maturity:
Amortized Cost	13,502	15,150
Fair Value	12,610	14,221
Unrealized gains	0	0
Unrealized (losses)	(892)	(929)
Corporate bonds
Fair Value
Amortized Cost	19,674	44,340
Fair Value	18,123	43,279
Unrealized gains	0	0
Unrealized (losses)	(1,551)	(1,061)
State and local governments
Securities held to maturity:
Amortized Cost	524,319	526,550
Fair Value	429,271	418,307
Unrealized gains	6	7
Unrealized (losses)	$ (95,054)	$ (108,250)

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Securities (Narrative) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) security $ / shares shares	Dec. 31, 2022 USD ($) security
Debt and Equity Securities, FV-NI [Line Items]
Private mortgage-backed security fair value	$ 800	$ 800
Debt securities, available-for-sale and held-to-maturity, number of positions | security	657	666
Number of securities held in an unrealized loss position | security	645	644
Investment securities, pledged as collateral for public deposits	$ 1,600,000	$ 758,000
FHLB stock and FRB stock, cost	54,900	39,600
FHLB, cost	22,100	14,700
FRB stock	$ 32,700	$ 24,900
Visa, Inc | Common Class B
Debt and Equity Securities, FV-NI [Line Items]
Stock owned (in shares) | shares	12,356
Carrying value of shares	$ 0
Visa, Inc | Common Class A
Debt and Equity Securities, FV-NI [Line Items]
Conversion price (in dollars per share) | $ / shares	$ 1.59
Conversion of stock (in shares) | shares	19,649

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Securities - Schedule of Information Regarding Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, AFS and HTM	$ 47,349	$ 478,793
Unrealized losses, AFS and HTM	2,180	33,147
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, AFS and HTM	2,610,369	2,263,197
Unrealized losses, AFS and HTM	533,912	520,099
Total
Fair value, AFS and HTM	2,657,718	2,741,990
Unrealized losses, AFS and HTM	536,092	553,246
U.S. Treasuries
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, AFS	0	168,758
Unrealized losses, AFS	0	5,662
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, AFS	169,613	0
Unrealized losses, AFS	4,988	0
Total
Fair Value, AFS	169,613	168,758
Unrealized losses, AFS	4,988	5,662
Government-sponsored enterprise securities
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, AFS	0	0
Unrealized losses, AFS	0	0
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, AFS	58,511	57,456
Unrealized losses, AFS	13,449	14,501
Total
Fair Value, AFS	58,511	57,456
Unrealized losses, AFS	13,449	14,501
Mortgage-backed securities
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, AFS and HTM	39,491	221,006
Unrealized losses, AFS and HTM	1,836	18,215
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, AFS and HTM	1,945,483	1,835,958
Unrealized losses, AFS and HTM	419,214	405,557
Total
Fair value, AFS and HTM	1,984,974	2,056,964
Unrealized losses, AFS and HTM	421,050	423,772
Corporate bonds
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, AFS	2,618	40,644
Unrealized losses, AFS	306	947
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, AFS	13,754	886
Unrealized losses, AFS	1,245	114
Total
Fair Value, AFS	16,372	41,530
Unrealized losses, AFS	1,551	1,061
State and local governments
Securities in an Unrealized Loss Position for Less than 12 Months
Fair value, HTM	5,240	48,385
Unrealized losses, HTM	38	8,323
Securities in an Unrealized Loss Position for More than 12 Months
Fair value, HTM	423,008	368,897
Unrealized losses, HTM	95,016	99,927
Total
Fair value, HTM	428,248	417,282
Unrealized losses, HTM	$ 95,054	$ 108,250

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Securities - Schedule of Book Values and Fair Values of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost
Due within one year	$ 99,944
Due after one year but within five years	77,166
Due after five years but within ten years	88,125
Due after ten years	1,000
Mortgage-backed securities	2,393,696
Amortized Cost	2,659,931	$ 2,758,556
Fair Value
Due within one year	97,508
Due after one year but within five years	74,338
Due after five years but within ten years	73,458
Due after ten years	943
Mortgage-backed securities	1,973,539
Total securities	2,219,786	2,314,493
Amortized Cost
Due within one year	0
Due after one year but within five years	996
Due after five years but within ten years	92,917
Due after ten years	430,406
Mortgage-backed securities	13,502
Amortized Cost	537,821	541,700
Fair Value
Due within one year	0
Due after one year but within five years	887
Due after five years but within ten years	77,987
Due after ten years	350,397
Mortgage-backed securities	12,610
Total securities	$ 441,881	$ 432,528

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Loans, Allowance for Credit Losses, and Asset Quality Information - Summary of Major Categories of Total Loans Outstanding (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 7,898,442	$ 6,666,548
Unamortized net deferred loan fees	(813)	(1,403)
Total loans	$ 7,897,629	$ 6,665,145
Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	100.00%	100.00%
Total SBA loans included in the table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 153,982	$ 148,803
Guaranteed portions of SBA loans included in table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	39,339	31,893
Unguaranteed portions of SBA loans included in table above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	114,643	116,910
Sold portions of SBA loans with servicing retained - not included in tables above
Loans and Leases Receivable Disclosure [Line Items]
Total loans	371,943	392,370
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 888,391	$ 641,941
Commercial and industrial | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	11.00%	9.00%
Real estate, commercial | Construction, development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 1,109,769	$ 934,176
Real estate, commercial | Construction, development & other land loans | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	14.00%	14.00%
Real estate, commercial | Commercial real estate - owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 1,222,189	$ 1,036,270
Real estate, commercial | Commercial real estate - owner occupied | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	16.00%	16.00%
Real estate, commercial | Commercial real estate - non owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 2,423,262	$ 2,123,811
Real estate, commercial | Commercial real estate - non owner occupied | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	31.00%	32.00%
Real estate, commercial | Multi-family real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 392,120	$ 350,180
Real estate, commercial | Multi-family real estate | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	5.00%	5.00%
Real estate, mortgage | Residential 1-4 family real estate
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 1,461,068	$ 1,195,785
Real estate, mortgage | Residential 1-4 family real estate | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	18.00%	18.00%
Real estate, mortgage | Home equity loans/lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 334,566	$ 323,726
Real estate, mortgage | Home equity loans/lines of credit | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	4.00%	5.00%
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Total	$ 67,077	$ 60,659
Consumer loans | Financing Receivable | Loan Category Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Percentage	1.00%	1.00%

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Loans, Allowance for Credit Losses, and Asset Quality Information - Narrative (Details) $ in Thousands		6 Months Ended
	Jan. 01, 2023 USD ($)	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) loan	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Unamortized discount on acquired loans		$ (29,200)			$ (11,600)
Total loans, net of deferred loan fees		$ 7,897,629			$ 6,665,145
Number of loans to debtors with nonperforming loans | loan		1			1
Interest income on nonaccrual loans		$ 0	$ 0
Allowance for credit losses on loans		109,230	82,181	$ 106,396	$ 90,967	$ 82,069	$ 78,789
GrandSouth
Loans and Leases Receivable Disclosure [Line Items]
Allowance for loan losses	$ 5,610
Allowance for credit loss, increase from acquisition, non-PCD	$ 12,200
Asset Pledged as Collateral
Loans and Leases Receivable Disclosure [Line Items]
Total loans, net of deferred loan fees		6,100,000			5,300,000
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans		2,688	2,630	3,295	2,900	2,439	2,656
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans		$ 23,442	15,450	$ 23,073	17,718	$ 16,013	16,249
Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans		90.00%
Real Estate | Receivable Benchmark | Collateral Type Concentration Risk
Loans and Leases Receivable Disclosure [Line Items]
Concentration risk percentage		88.00%
Hotel | Minimum
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans		10.00%
Hotel | Maximum
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans		25.00%
Non Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Threshold percentage to write-off nonaccrual loans		75.00%
Officers and Directors
Loans and Leases Receivable Disclosure [Line Items]
Total loans, net of deferred loan fees		$ 5,800			6,000
Number of new loans | loan		2
Financing receivable, excluding accrued interest, advances		$ 100
Repayments received from related parties		300
Officers and Directors | Unused lines of Credit
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, excluding accrued interest, available credit		1,200			1,200
Residential Mortgage Loans
Loans and Leases Receivable Disclosure [Line Items]
Presold mortgages in process of settlement		2,700			800
Unfunded Loan Commitment
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses on loans		13,018	$ 12,006		13,306		$ 13,506
SBA Loans
Loans and Leases Receivable Disclosure [Line Items]
Unamortized discount on acquired loans		$ (3,800)			$ (4,300)

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Loans, Allowance for Credit Losses, and Asset Quality Information - Summary of Nonperforming Assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans	$ 29,876	$ 29,876	$ 28,514
Amortization cost basis	3,654	4,862
Total loans	7,897,629	7,897,629	6,665,145
Nonperforming Financial Instruments
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans	29,876	29,876	28,514
Modifications to borrowers in financial distress	4,862	4,862	0
TDRs - accruing	0	0	9,121
Total loans	34,738	34,738	37,635
Foreclosed real estate	1,077	1,077	658
Total nonperforming assets	$ 35,815	$ 35,815	$ 38,293

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Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	$ 3,950	$ 9,022
Nonaccrual Loans with an Allowance	25,926	19,492
Total Nonaccrual Loans	29,876	28,514
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	3,855
Nonaccrual Loans with an Allowance	11,299	6,374
Total Nonaccrual Loans	11,299	10,229
Real estate, commercial | Construction, development & other land loans
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	265	1,009
Total Nonaccrual Loans	265	1,009
Real estate, commercial | Commercial real estate - owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	3,277	3,903
Nonaccrual Loans with an Allowance	7,988	5,770
Total Nonaccrual Loans	11,265	9,673
Real estate, commercial | Commercial real estate - non owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	673	1,107
Nonaccrual Loans with an Allowance	1,153	1,725
Total Nonaccrual Loans	1,826	2,832
Real estate, commercial | Multi-family real estate
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	0	0
Total Nonaccrual Loans	0	0
Real estate, mortgage | Residential 1-4 family real estate
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	157
Nonaccrual Loans with an Allowance	3,198	3,132
Total Nonaccrual Loans	3,198	3,289
Real estate, mortgage | Home equity loans/lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	1,867	1,397
Total Nonaccrual Loans	1,867	1,397
Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual Loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	156	85
Total Nonaccrual Loans	$ 156	$ 85

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Accrued Interest Receivable Written Off (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	$ 272	$ 184	$ 324
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	162	33	102
Real estate, commercial | Construction, development & other land loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	2	16	16
Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	64	100	123
Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	7	2	15
Real estate, commercial | Multi-family real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	0	0	1
Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	20	25	45
Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	16	6	20
Consumer loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable written off	$ 1	$ 2	$ 2

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Analysis of Payment Status of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans	$ 7,897,629	$ 6,665,145
Nonaccrual loans	29,876	28,514
Unamortized net deferred loan fees	(813)	(1,403)
Total	7,898,442	6,666,548
Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,679	5,417
Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	4,726	2,811
Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Current
Financing Receivable, Past Due [Line Items]
Loans	7,860,161	6,629,806
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	11,299	10,229
Total	888,391	641,941
Commercial and industrial | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	702	438
Commercial and industrial | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,127	565
Commercial and industrial | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Loans	875,263	630,709
Commercial and industrial | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	888,391	641,941
Real estate, commercial | Construction, development & other land loans
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	265	1,009
Total	1,109,769	934,176
Real estate, commercial | Construction, development & other land loans | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	585	238
Real estate, commercial | Construction, development & other land loans | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	22	1,687
Real estate, commercial | Construction, development & other land loans | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Construction, development & other land loans | Current
Financing Receivable, Past Due [Line Items]
Loans	1,108,897	931,242
Real estate, commercial | Construction, development & other land loans | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	1,109,769	934,176
Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	11,265	9,673
Total	1,222,189	1,036,270
Real estate, commercial | Commercial real estate - owner occupied | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	525	124
Real estate, commercial | Commercial real estate - owner occupied | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	400	48
Real estate, commercial | Commercial real estate - owner occupied | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Commercial real estate - owner occupied | Current
Financing Receivable, Past Due [Line Items]
Loans	1,209,999	1,026,425
Real estate, commercial | Commercial real estate - owner occupied | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	1,222,189	1,036,270
Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	1,826	2,832
Total	2,423,262	2,123,811
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	61	496
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	634	49
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Commercial real estate - non owner occupied | Current
Financing Receivable, Past Due [Line Items]
Loans	2,420,741	2,120,434
Real estate, commercial | Commercial real estate - non owner occupied | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	2,423,262	2,123,811
Real estate, commercial | Multi-family real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	0	0
Total	392,120	350,180
Real estate, commercial | Multi-family real estate | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Multi-family real estate | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Multi-family real estate | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, commercial | Multi-family real estate | Current
Financing Receivable, Past Due [Line Items]
Loans	392,120	350,180
Real estate, commercial | Multi-family real estate | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	392,120	350,180
Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	3,198	3,289
Total	1,461,068	1,195,785
Real estate, mortgage | Residential 1-4 family real estate | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,027	3,415
Real estate, mortgage | Residential 1-4 family real estate | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,814	25
Real estate, mortgage | Residential 1-4 family real estate | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, mortgage | Residential 1-4 family real estate | Current
Financing Receivable, Past Due [Line Items]
Loans	1,455,029	1,189,056
Real estate, mortgage | Residential 1-4 family real estate | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	1,461,068	1,195,785
Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	1,867	1,397
Total	334,566	323,726
Real estate, mortgage | Home equity loans/lines of credit | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	550	457
Real estate, mortgage | Home equity loans/lines of credit | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	673	371
Real estate, mortgage | Home equity loans/lines of credit | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate, mortgage | Home equity loans/lines of credit | Current
Financing Receivable, Past Due [Line Items]
Loans	331,476	321,501
Real estate, mortgage | Home equity loans/lines of credit | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	334,566	323,726
Consumer loans
Financing Receivable, Past Due [Line Items]
Nonaccrual loans	156	85
Total	67,077	60,659
Consumer loans | Accruing 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	229	249
Consumer loans | Accruing 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	56	66
Consumer loans | Accruing 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer loans | Current
Financing Receivable, Past Due [Line Items]
Loans	66,636	60,259
Consumer loans | Loans, Excluding Purchased Credit Impaired Loans
Financing Receivable, Past Due [Line Items]
Total	$ 67,077	$ 60,659

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 8,129	$ 13,274
Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	157
Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	1,626	6,394
Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	6,503	6,723
Commercial and industrial | Accruing 30-59 Days Past Due
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	1,626	6,394
Commercial and industrial | Accruing 30-59 Days Past Due | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial and industrial | Accruing 30-59 Days Past Due | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	1,626	6,394
Commercial and industrial | Accruing 30-59 Days Past Due | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Commercial and industrial | Accruing 30-59 Days Past Due | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	5,830	4,578
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - owner occupied | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - owner occupied | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - owner occupied | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - owner occupied | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	5,830	4,578
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - non owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	673	2,145
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - non owner occupied | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - non owner occupied | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - non owner occupied | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	0	0
Real estate, commercial | Accruing 30-59 Days Past Due | Commercial real estate - non owner occupied | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans	$ 673	2,145
Real estate, mortgage | Accruing 30-59 Days Past Due | Residential 1-4 family real estate
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans		157
Real estate, mortgage | Accruing 30-59 Days Past Due | Residential 1-4 family real estate | Residential Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans		157
Real estate, mortgage | Accruing 30-59 Days Past Due | Residential 1-4 family real estate | Business Assets
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans		0
Real estate, mortgage | Accruing 30-59 Days Past Due | Residential 1-4 family real estate | Land
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans		0
Real estate, mortgage | Accruing 30-59 Days Past Due | Residential 1-4 family real estate | Commercial Property
Loans and Leases Receivable Disclosure [Line Items]
Total Collateral-Dependent Loans		$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Activity in Allowance for Loan Losses for Loans (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 106,396	$ 90,967	$ 82,069	$ 90,967	$ 78,789	$ 78,789
"Day 1" ACL for acquired PCD loans	0			5,610
Charge-offs	(1,751)		(1,760)	(4,372)	(2,803)	(4,465)
Recoveries	885		1,872	1,874	2,695	4,043
Provisions / (Reversals)	3,700		0	15,151	3,500	12,600
Ending balance	109,230	106,396	82,181	109,230	82,181	90,967
Commercial and industrial
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	23,073	17,718	16,013	17,718	16,249	16,249
"Day 1" ACL for acquired PCD loans	0			5,197
Charge-offs	(1,534)		(728)	(3,711)	(1,518)	(2,519)
Recoveries	492		223	766	470	756
Provisions / (Reversals)	1,411		(58)	3,472	249	3,232
Ending balance	23,442	23,073	15,450	23,442	15,450	17,718
Real estate, commercial | Construction, development & other land loans
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	18,986	15,128	16,057	15,128	16,519	16,519
"Day 1" ACL for acquired PCD loans	0			49
Charge-offs	0		0	0	0	0
Recoveries	158		130	223	267	480
Provisions / (Reversals)	(667)		(16)	3,077	(615)	(1,871)
Ending balance	18,477	18,986	16,171	18,477	16,171	15,128
Real estate, commercial | Commercial real estate - owner occupied
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	16,082	14,972	15,274	14,972	12,317	12,317
"Day 1" ACL for acquired PCD loans	0			191
Charge-offs	0		(18)	0	(18)	(214)
Recoveries	34		529	70	560	691
Provisions / (Reversals)	265		(864)	1,148	2,062	2,178
Ending balance	16,381	16,082	14,921	16,381	14,921	14,972
Real estate, commercial | Commercial real estate - non owner occupied
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	25,990	22,780	19,440	22,780	16,789	16,789
"Day 1" ACL for acquired PCD loans	0			51
Charge-offs	0		(800)	(235)	(845)	(849)
Recoveries	38		768	432	889	1,281
Provisions / (Reversals)	246		716	3,246	3,291	5,559
Ending balance	26,274	25,990	20,124	26,274	20,124	22,780
Real estate, commercial | Multi-family real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,204	2,957	2,613	2,957	1,236	1,236
"Day 1" ACL for acquired PCD loans	0			0
Charge-offs	0		0	0	0	0
Recoveries	3		3	7	6	11
Provisions / (Reversals)	739		(467)	982	907	1,710
Ending balance	3,946	3,204	2,149	3,946	2,149	2,957
Real estate, mortgage | Residential 1-4 family real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	12,285	11,354	8,159	11,354	8,686	8,686
"Day 1" ACL for acquired PCD loans	0			113
Charge-offs	0		0	0	0	0
Recoveries	79		11	225	15	17
Provisions / (Reversals)	1,941		480	2,613	(51)	2,651
Ending balance	14,305	12,285	8,650	14,305	8,650	11,354
Real estate, mortgage | Home equity loans/lines of credit
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,481	3,158	2,074	3,158	4,337	4,337
"Day 1" ACL for acquired PCD loans	0			8
Charge-offs	0		0	(2)	(41)	(43)
Recoveries	40		128	74	361	600
Provisions / (Reversals)	196		(116)	479	(2,571)	(1,736)
Ending balance	3,717	3,481	2,086	3,717	2,086	3,158
Consumer loans
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,295	2,900	2,439	2,900	2,656	2,656
"Day 1" ACL for acquired PCD loans	0			1
Charge-offs	(217)		(214)	(424)	(381)	(840)
Recoveries	41		80	77	127	207
Provisions / (Reversals)	(431)		325	134	228	877
Ending balance	$ 2,688	$ 3,295	$ 2,630	$ 2,688	$ 2,630	$ 2,900

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Recorded Investment in Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	$ 947,045		$ 947,045		$ 2,200,727
Year two	2,284,505		2,284,505		1,850,445
Year three	1,904,213		1,904,213		897,337
Year four	903,812		903,812		444,804
Year five	438,144		438,144		957
Prior	650,261		650,261		750,041
Revolving	770,462		770,462		522,237
Total	7,898,442		7,898,442		6,666,548
Unamortized net deferred loan fees	(813)		(813)		(1,403)
Total loans, net of deferred loan fees	7,897,629		7,897,629		6,665,145
Total gross charge-offs, year to date
2023			5
2022			154
2021			953
2020			35
2019			556
Prior			764
Revolving			1,905
Total	1,751	$ 1,760	4,372	$ 2,803	4,465
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total	888,391		888,391		641,941
Total gross charge-offs, year to date
Total	1,534	728	3,711	1,518	2,519
Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	9,531		9,531		35,726
Year two	16,694		16,694		7,977
Year three	7,033		7,033		3,613
Year four	3,110		3,110		1,057
Year five	813		813		3
Prior	838		838		1,275
Revolving	29,058		29,058		11,008
Total	67,077		67,077		60,659
Total gross charge-offs, year to date
2023			5
2022			8
2021			22
2020			3
2019			0
Prior			0
Revolving			386
Total	217	214	424	381	840
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	75,304		75,304		186,243
Year two	183,199		183,199		109,822
Year three	117,877		117,877		86,566
Year four	87,060		87,060		53,970
Year five	50,380		50,380		590
Prior	73,833		73,833		83,340
Revolving	300,738		300,738		121,410
Total	888,391		888,391		641,941
Total gross charge-offs, year to date
2023			0
2022			146
2021			696
2020			32
2019			556
Prior			764
Revolving			1,517
Total			3,711
Construction, development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	311,404		311,404		556,536
Year two	468,878		468,878		267,208
Year three	214,259		214,259		46,138
Year four	22,470		22,470		31,872
Year five	15,759		15,759		0
Prior	9,580		9,580		12,866
Revolving	67,419		67,419		19,556
Total	1,109,769		1,109,769		934,176
Total gross charge-offs, year to date
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving			0
Total	0	0	0	0	0
Commercial real estate - owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	94,964		94,964		262,255
Year two	319,802		319,802		306,602
Year three	327,750		327,750		194,590
Year four	214,479		214,479		104,993
Year five	110,120		110,120		179
Prior	136,858		136,858		151,120
Revolving	18,216		18,216		16,531
Total	1,222,189		1,222,189		1,036,270
Total gross charge-offs, year to date
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving			0
Total	0	18	0	18	214
Commercial real estate - non owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	264,437		264,437		719,661
Year two	751,965		751,965		748,754
Year three	781,067		781,067		320,102
Year four	330,926		330,926		143,531
Year five	147,706		147,706		0
Prior	123,266		123,266		170,604
Revolving	23,895		23,895		21,159
Total	2,423,262		2,423,262		2,123,811
Total gross charge-offs, year to date
2023			0
2022			0
2021			235
2020			0
2019			0
Prior			0
Revolving			0
Total	0	800	235	845	849
Multi-family real estate | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	35,169		35,169		119,922
Year two	146,618		146,618		133,701
Year three	135,882		135,882		59,452
Year four	45,914		45,914		9,669
Year five	12,650		12,650		0
Prior	11,561		11,561		15,212
Revolving	4,326		4,326		12,224
Total	392,120		392,120		350,180
Total gross charge-offs, year to date
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving			0
Total	0	0	0	0	0
Residential 1-4 family real estate | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	154,136		154,136		319,234
Year two	393,879		393,879		275,134
Year three	318,799		318,799		186,433
Year four	199,462		199,462		99,388
Year five	100,012		100,012		185
Prior	292,431		292,431		313,373
Revolving	2,349		2,349		2,038
Total	1,461,068		1,461,068		1,195,785
Total gross charge-offs, year to date
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving			0
Total	0	0	0	0	0
Home equity loans/lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	2,100		2,100		1,150
Year two	3,470		3,470		1,247
Year three	1,546		1,546		443
Year four	391		391		324
Year five	704		704		0
Prior	1,894		1,894		2,251
Revolving	324,461		324,461		318,311
Total	334,566		334,566		323,726
Total gross charge-offs, year to date
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving			2
Total	0	$ 0	2	$ 41	43
Pass | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	9,298		9,298		35,406
Year two	16,548		16,548		7,946
Year three	6,956		6,956		3,610
Year four	3,097		3,097		1,056
Year five	808		808		3
Prior	826		826		1,250
Revolving	28,963		28,963		10,953
Total	66,496		66,496		60,224
Pass | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	74,660		74,660		185,167
Year two	181,469		181,469		107,747
Year three	115,551		115,551		85,110
Year four	84,957		84,957		51,274
Year five	48,034		48,034		590
Prior	67,670		67,670		76,588
Revolving	298,082		298,082		120,590
Total	870,423		870,423		627,066
Pass | Construction, development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	310,613		310,613		550,752
Year two	466,562		466,562		267,096
Year three	214,178		214,178		42,421
Year four	22,440		22,440		30,973
Year five	15,743		15,743		0
Prior	9,253		9,253		12,722
Revolving	67,372		67,372		19,519
Total	1,106,161		1,106,161		923,483
Pass | Commercial real estate - owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	93,809		93,809		258,025
Year two	316,395		316,395		305,324
Year three	325,281		325,281		190,464
Year four	210,414		210,414		96,495
Year five	101,728		101,728		179
Prior	123,372		123,372		141,053
Revolving	17,491		17,491		15,499
Total	1,188,490		1,188,490		1,007,039
Pass | Commercial real estate - non owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	263,968		263,968		718,696
Year two	750,657		750,657		747,653
Year three	781,011		781,011		319,708
Year four	326,322		326,322		141,284
Year five	144,933		144,933		0
Prior	115,805		115,805		168,096
Revolving	23,895		23,895		21,159
Total	2,406,591		2,406,591		2,116,596
Pass | Multi-family real estate | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	35,169		35,169		119,922
Year two	146,618		146,618		133,701
Year three	135,882		135,882		59,452
Year four	45,914		45,914		9,669
Year five	12,650		12,650		0
Prior	11,561		11,561		15,212
Revolving	4,326		4,326		12,224
Total	392,120		392,120		350,180
Pass | Residential 1-4 family real estate | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	153,127		153,127		317,282
Year two	393,590		393,590		274,756
Year three	318,229		318,229		186,102
Year four	198,500		198,500		98,559
Year five	98,969		98,969		185
Prior	281,467		281,467		301,885
Revolving	1,715		1,715		1,379
Total	1,445,597		1,445,597		1,180,148
Pass | Home equity loans/lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	1,770		1,770		869
Year two	3,404		3,404		1,091
Year three	1,275		1,275		349
Year four	298		298		237
Year five	606		606		0
Prior	1,752		1,752		2,020
Revolving	315,797		315,797		309,786
Total	324,902		324,902		314,352
Special Mention | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	0		0		0
Revolving	0		0		0
Total	0		0		0
Special Mention | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	347		347		342
Year two	486		486		166
Year three	335		335		648
Year four	502		502		1,312
Year five	1,094		1,094		0
Prior	889		889		990
Revolving	1,068		1,068		332
Total	4,721		4,721		3,790
Special Mention | Construction, development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	387		387		5,128
Year two	2,212		2,212		5
Year three	0		0		3,679
Year four	22		22		0
Year five	0		0		0
Prior	99		99		100
Revolving	23		23		13
Total	2,743		2,743		8,925
Special Mention | Commercial real estate - owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	730		730		1,170
Year two	279		279		1,070
Year three	720		720		4,042
Year four	3,798		3,798		6,926
Year five	5,949		5,949		0
Prior	5,850		5,850		3,277
Revolving	635		635		665
Total	17,961		17,961		17,150
Special Mention | Commercial real estate - non owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	373		373		545
Year two	218		218		44
Year three	40		40		394
Year four	4,604		4,604		1,363
Year five	1,348		1,348		0
Prior	6,087		6,087		1,180
Revolving	0		0		0
Total	12,670		12,670		3,526
Special Mention | Multi-family real estate | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	0		0		0
Revolving	0		0		0
Total	0		0		0
Special Mention | Residential 1-4 family real estate | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	697		697		1,189
Year two	44		44		127
Year three	196		196		110
Year four	151		151		470
Year five	607		607		0
Prior	2,036		2,036		2,416
Revolving	19		19		0
Total	3,750		3,750		4,312
Special Mention | Home equity loans/lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	223		223		175
Year two	0		0		0
Year three	120		120		0
Year four	0		0		0
Year five	0		0		0
Prior	17		17		18
Revolving	77		77		1,072
Total	437		437		1,265
Classified | Consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	233		233		320
Year two	146		146		31
Year three	77		77		3
Year four	13		13		1
Year five	5		5		0
Prior	12		12		25
Revolving	95		95		55
Total	581		581		435
Classified | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	297		297		734
Year two	1,244		1,244		1,909
Year three	1,991		1,991		808
Year four	1,601		1,601		1,384
Year five	1,252		1,252		0
Prior	5,274		5,274		5,762
Revolving	1,588		1,588		488
Total	13,247		13,247		11,085
Classified | Construction, development & other land loans | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	404		404		656
Year two	104		104		107
Year three	81		81		38
Year four	8		8		899
Year five	16		16		0
Prior	228		228		44
Revolving	24		24		24
Total	865		865		1,768
Classified | Commercial real estate - owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	425		425		3,060
Year two	3,128		3,128		208
Year three	1,749		1,749		84
Year four	267		267		1,572
Year five	2,443		2,443		0
Prior	7,636		7,636		6,790
Revolving	90		90		367
Total	15,738		15,738		12,081
Classified | Commercial real estate - non owner occupied | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	96		96		420
Year two	1,090		1,090		1,057
Year three	16		16		0
Year four	0		0		884
Year five	1,425		1,425		0
Prior	1,374		1,374		1,328
Revolving	0		0		0
Total	4,001		4,001		3,689
Classified | Multi-family real estate | Real estate, commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	0		0		0
Year two	0		0		0
Year three	0		0		0
Year four	0		0		0
Year five	0		0		0
Prior	0		0		0
Revolving	0		0		0
Total	0		0		0
Classified | Residential 1-4 family real estate | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	312		312		763
Year two	245		245		251
Year three	374		374		221
Year four	811		811		359
Year five	436		436		0
Prior	8,928		8,928		9,072
Revolving	615		615		659
Total	11,721		11,721		11,325
Classified | Home equity loans/lines of credit | Real estate, mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one	107		107		106
Year two	66		66		156
Year three	151		151		94
Year four	93		93		87
Year five	98		98		0
Prior	125		125		213
Revolving	8,587		8,587		7,453
Total	$ 9,227		$ 9,227		$ 8,109

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Modifications (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 3,654	$ 4,862
Percentage of loan modifications to total loans	0.05%	0.06%
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 1,393	$ 1,618
Percentage of loan modifications to total loans	0.16%	0.18%
Real estate, commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Percentage of loan modifications to total loans		0.04%
Real estate, commercial | Construction, development & other land loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		$ 514
Percentage of loan modifications to total loans		0.05%
Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 475	$ 475
Percentage of loan modifications to total loans	0.04%
Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		96
Real estate, mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Percentage of loan modifications to total loans	0.03%
Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 469	$ 515
Percentage of loan modifications to total loans		0.04%
Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 1,317	$ 1,416
Percentage of loan modifications to total loans	0.39%	0.42%
Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		$ 228
Percentage of loan modifications to total loans		0.34%
Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 1,551	$ 1,701
Payment Deferral | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	1,363	1,513
Payment Deferral | Real estate, commercial | Construction, development & other land loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		0
Payment Deferral | Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	188	188
Payment Deferral | Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		0
Payment Deferral | Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	0
Payment Deferral | Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	0
Payment Deferral | Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		0
Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	2,103	3,149
Term Extension | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	30	105
Term Extension | Real estate, commercial | Construction, development & other land loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		502
Term Extension | Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	287	287
Term Extension | Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		96
Term Extension | Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	469	515
Term Extension | Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	1,317	1,416
Term Extension | Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		228
Combination - Interest Rate Reduction and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	12
Combination - Interest Rate Reduction and Term Extension | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	0
Combination - Interest Rate Reduction and Term Extension | Real estate, commercial | Construction, development & other land loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		12
Combination - Interest Rate Reduction and Term Extension | Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	0
Combination - Interest Rate Reduction and Term Extension | Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		0
Combination - Interest Rate Reduction and Term Extension | Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	0	0
Combination - Interest Rate Reduction and Term Extension | Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis	$ 0	0
Combination - Interest Rate Reduction and Term Extension | Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortization cost basis		$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Financial Effect of Modifications (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Payment Delay (in months)	2 months	2 months
Weighted Average Term Extension (in months)	25 months	13 months
Real estate, commercial | Construction, development & other land loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction		1.50%
Weighted Average Payment Delay (in months)		0 months
Weighted Average Term Extension (in months)		7 months
Real estate, commercial | Commercial real estate - owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Payment Delay (in months)	12 months	12 months
Weighted Average Term Extension (in months)	49 months	49 months
Real estate, commercial | Commercial real estate - non owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction		0.00%
Weighted Average Payment Delay (in months)		0 months
Weighted Average Term Extension (in months)		15 months
Real estate, mortgage | Residential 1-4 family real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Payment Delay (in months)	0 months	0 months
Weighted Average Term Extension (in months)	25 months	24 months
Real estate, mortgage | Home equity loans/lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Payment Delay (in months)	0 months	0 months
Weighted Average Term Extension (in months)	42 months	40 months
Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted Average Interest Rate Reduction		0.00%
Weighted Average Payment Delay (in months)		0 months
Weighted Average Term Extension (in months)		6 months

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Aging Modifications (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 4,692
Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	170
Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Commercial and industrial | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	1,618
Commercial and industrial | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Commercial and industrial | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Commercial and industrial | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Construction, development & other land loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	514
Real estate, commercial | Construction, development & other land loans | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Construction, development & other land loans | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Construction, development & other land loans | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - owner occupied | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	475
Real estate, commercial | Commercial real estate - owner occupied | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - owner occupied | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - owner occupied | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - non owner occupied | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	96
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Commercial real estate - non owner occupied | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Multi-family real estate | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Multi-family real estate | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Multi-family real estate | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, commercial | Multi-family real estate | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, mortgage | Residential 1-4 family real estate | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	345
Real estate, mortgage | Residential 1-4 family real estate | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, mortgage | Residential 1-4 family real estate | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	170
Real estate, mortgage | Residential 1-4 family real estate | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, mortgage | Home equity loans/lines of credit | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	1,416
Real estate, mortgage | Home equity loans/lines of credit | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, mortgage | Home equity loans/lines of credit | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Real estate, mortgage | Home equity loans/lines of credit | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Consumer loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	228
Consumer loans | Accruing 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Consumer loans | Accruing 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	0
Consumer loans | Accruing 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 0

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Schedule of Information of Loans Modified in Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) loan	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan	7		11
Pre-modification restructured balances	$ 998		$ 1,651
Post-modification restructured balances	$ 998		$ 1,651
Home equity loans/lines of credit | Troubled Debt Restructuring, Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan		2	2
Pre-modification restructured balances		$ 203	$ 203
Post-modification restructured balances		$ 203	$ 203
Commercial and industrial | Troubled Debt Restructuring, Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan		1	1
Pre-modification restructured balances		$ 161	$ 161
Post-modification restructured balances		$ 161	$ 161
Commercial and industrial | Troubled Debt Restructuring, Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan	2		3
Pre-modification restructured balances	$ 259		$ 300
Post-modification restructured balances	$ 259		$ 300
Real estate, commercial | Construction, development & other land loans | Troubled Debt Restructuring, Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan		1	1
Pre-modification restructured balances		$ 131	$ 131
Post-modification restructured balances		$ 131	$ 131
Real estate, commercial | Commercial real estate - owner occupied | Troubled Debt Restructuring, Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan	1		2
Pre-modification restructured balances	$ 244		$ 784
Post-modification restructured balances	$ 244		$ 784
Real estate, mortgage | Residential 1-4 family real estate | Troubled Debt Restructuring, Accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan	0		1
Pre-modification restructured balances	$ 0		$ 36
Post-modification restructured balances	$ 0		$ 36
Real estate, mortgage | Residential 1-4 family real estate | Troubled Debt Restructuring, Nonaccrual
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | loan	0		1
Pre-modification restructured balances	$ 0		$ 36
Post-modification restructured balances	$ 0		$ 36

XML

Loans, Allowance for Credit Losses, and Asset Quality Information - Unfunded Loan Commitments (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended			12 Months Ended
	Jan. 01, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 90,967	$ 106,396	$ 90,967	$ 82,069	$ 90,967	$ 78,789		$ 78,789
Provision (reversal)		3,700		0	15,151	3,500		12,600
Charge-offs		(1,751)		(1,760)	(4,372)	(2,803)		(4,465)
Recoveries		885		1,872	1,874	2,695		4,043
Ending balance		109,230	106,396	82,181	109,230	82,181		90,967
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	13,306		13,306		13,306	13,506		13,506
Provision (reversal)			(200)		(2,209)		$ (1,500)
Charge-offs			0		0		0
Recoveries			0		0		0
Ending balance		$ 13,018		$ 12,006	13,018	$ 12,006		$ 13,306
Unfunded Loan Commitment | GrandSouth
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision (reversal)	$ 1,900		$ 0		$ 1,921		$ 0

XML

Goodwill and Other Intangible Assets (Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Amortizable intangible assets:
Gross Carrying Amount	$ 74,226	$ 45,114
Accumulated Amortization	37,129	32,439
Unamortizable intangible assets:
Goodwill	478,750	364,263	$ 364,263
Intangibles before servicing assets
Amortizable intangible assets:
Gross Carrying Amount	60,690	31,850
Accumulated Amortization	27,374	23,179
Customer lists
Amortizable intangible assets:
Gross Carrying Amount	2,700	2,700
Accumulated Amortization	2,007	1,847
Core deposit intangibles
Amortizable intangible assets:
Gross Carrying Amount	57,890	29,050
Accumulated Amortization	25,296	21,274
Other intangibles
Amortizable intangible assets:
Gross Carrying Amount	100	100
Accumulated Amortization	71	58
SBA servicing assets
Amortizable intangible assets:
Gross Carrying Amount	13,536	13,264
Accumulated Amortization	$ 9,755	$ 9,260

XML

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 2,049	$ 953	$ 4,194	$ 1,970
SBA guaranteed servicing income		863	$ 992	1,847	$ 1,781
Loans		7,897,629		7,897,629		$ 6,665,145
Goodwill impairment				0		0
Sold portions of SBA loans with servicing retained - not included in tables above
Finite-Lived Intangible Assets [Line Items]
Loans		$ 371,943		$ 371,943		$ 392,370
Customer lists
Finite-Lived Intangible Assets [Line Items]
Useful life		5 years		5 years
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Useful life		10 years		10 years
Core deposit intangibles | GrandSouth
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Finite-lived intangible assets acquired	$ 28,800

XML

Goodwill and Other Intangible Assets (Change in SBA Servicing Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Roll Forward]
Amortization of intangible assets	$ 2,049	$ 953	$ 4,194	$ 1,970
Ending balance, net	33,316		33,316
SBA guaranteed servicing income	863	992	1,847	1,781
SBA servicing assets
Finite-Lived Intangible Assets [Roll Forward]
Beginning balance, net	3,897	5,591	4,004	5,472
Finite-lived intangible assets acquired	195	281	271	1,026
Amortization of intangible assets	311	905	494	1,531
Ending balance, net	$ 3,781	$ 4,967	$ 3,781	$ 4,967

XML

Goodwill and Other Intangible Assets - Summary of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Beginning balance	$ 364,263	$ 364,263
Goodwill acquired during period	114,487	0
Goodwill, Ending Balance	$ 478,750	$ 364,263

XML

Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
July 1, 2023 to December 31, 2023	$ 3,808
2024	6,604
2025	5,672
2026	4,705
2027	3,951
Thereafter	8,576
Finite-Lived Intangible Assets, Net, Total	$ 33,316

XML

Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total borrowings, gross	$ 487,097	$ 290,918
Unamortized discount on acquired borrowings	(5,439)	(3,411)
Total borrowings	$ 481,658	$ 287,507
Weighted average interest rate	5.44%	4.82%
FHLB Principal Reducing Credit Due July 24, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 8	$ 32
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due December 22, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 891	$ 912
Fixed rate	1.25%	1.25%
FHLB Principal Reducing Credit Due June 26, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 208	$ 214
Fixed rate	0.25%	0.25%
FHLB Principal Reducing Credit Due July 17, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 34	$ 38
Fixed rate	0.00%	0.00%
FHLB Principal Reducing Credit Due August 18, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 155	$ 158
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due August 22, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 155	$ 159
Fixed rate	1.00%	1.00%
FHLB Principal Reducing Credit Due December 20, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 322	$ 329
Fixed rate	0.50%	0.50%
FHLB Daily Rate Credit Due July 13, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 75,000
Fixed rate	5.24%
FHLB Fixed Rate Credit Due September 13, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 300,000
Fixed rate	5.17%
FHLB Fixed Rate Hybrid Due September 29, 2023
Debt Instrument [Line Items]
Total borrowings, gross	$ 5,000
Fixed rate	0.40%
Trust Preferred Securities Due January 23, 2034
Debt Instrument [Line Items]
Total borrowings, gross	$ 10,310	$ 10,310
Weighted average interest rate	7.95%	7.06%
Trust Preferred Securities Due January 23, 2034 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.65%	2.65%
Trust Preferred Securities Due On January 23, 2034
Debt Instrument [Line Items]
Total borrowings, gross	$ 10,310	$ 10,310
Weighted average interest rate	8.05%	7.16%
Basis spread on variable rate (as a percent)		2.75%
Trust Preferred Securities Due On January 23, 2034 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.75%
Trust Preferred Securities Due September 20, 2034
Debt Instrument [Line Items]
Total borrowings, gross	$ 12,372	$ 12,372
Weighted average interest rate	7.66%	6.90%
Trust Preferred Securities Due September 20, 2034 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.15%	2.15%
Trust Preferred Securities Due January 7, 2035
Debt Instrument [Line Items]
Total borrowings, gross	$ 10,310	$ 10,310
Weighted average interest rate	7.26%	6.08%
Trust Preferred Securities Due January 7, 2035 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.00%	2.00%
Trust Preferred Securities Due June 15, 2036
Debt Instrument [Line Items]
Total borrowings, gross	$ 25,774	$ 25,774
Weighted average interest rate	6.26%	6.16%
Trust Preferred Securities Due June 15, 2036 | Three-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.39%	1.39%
Trust Preferred Securities Due June 23, 2036
Debt Instrument [Line Items]
Total borrowings, gross	$ 8,248
Weighted average interest rate	7.39%
Basis spread on variable rate (as a percent)	1.85%
Subordinated Debentures Due November 30, 2028
Debt Instrument [Line Items]
Total borrowings, gross	$ 10,000
Fixed rate	6.50%
Subordinated Debentures Due November 15, 2030
Debt Instrument [Line Items]
Total borrowings, gross	$ 18,000
Fixed rate	4.38%
FHLB Daily Rate Credit Due August 23, 2023
Debt Instrument [Line Items]
Total borrowings, gross		$ 40,000
Fixed rate		4.57%
FHLB Fixed Rate Credit Due January 9, 2023
Debt Instrument [Line Items]
Total borrowings, gross		$ 50,000
Fixed rate		4.15%
FHLB Fixed Rate Credit Due February 1, 2023
Debt Instrument [Line Items]
Total borrowings, gross		$ 80,000
Fixed rate		4.25%
FHLB Fixed Rate Credit Due February 9, 2023
Debt Instrument [Line Items]
Total borrowings, gross		$ 50,000
Fixed rate		4.35%

XML

Leases (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) branchOffice	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) branchOffice	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	19 years 3 months 18 days		19 years 3 months 18 days
Weighted average discount rate	3.07%		3.07%
Total operating lease expense	$ 800	$ 700	$ 1,500	$ 1,600
Operating right-of-use lease assets	18,375		18,375		$ 18,733
Operating lease liabilities	$ 19,109		$ 19,109		$ 19,391
Minimum
Lessee, Lease, Description [Line Items]
Option extension period	5 years		5 years
Maximum
Lessee, Lease, Description [Line Items]
Option extension period	10 years		10 years
Land and Building
Lessee, Lease, Description [Line Items]
Number of branch locations | branchOffice	17		17
Land
Lessee, Lease, Description [Line Items]
Number of branch locations | branchOffice	10		10

XML

Leases (Schedule of Estimated Lease Payments) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
July 1, 2023 to December 31, 2023	$ 1,180
2024	2,163
2025	1,706
2026	1,685
2027	1,547
Thereafter	18,441
Total undiscounted lease payments	26,722
Less effect of discounting	(7,613)
Present value of estimated lease payments (lease liability)	$ 19,109	$ 19,391

XML

Pension Plans (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) plan	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) plan	Jun. 30, 2022 USD ($)
Retirement Benefits [Abstract]
Number of defined benefit plans | plan	2		2
Net periodic pension cost (income)	$ 50,000	$ 51,000	$ 101,000	$ 102,000
Contributions to plan			0
Expected contributions to plan	$ 0		0
Termination cost, estimate			$ 2,400,000

XML

Pension Plans (Components of Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	294	295	589	590
Expected return on plan assets	(288)	(288)	(576)	(576)
Amortization of net loss (gain)	44	44	88	88
Net periodic pension cost	50	51	101	102
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	266	267	533	534
Expected return on plan assets	(288)	(288)	(576)	(576)
Amortization of net loss (gain)	180	180	360	360
Net periodic pension cost	158	159	317	318
SERP
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	28	28	56	56
Expected return on plan assets	0	0	0	0
Amortization of net loss (gain)	(136)	(136)	(272)	(272)
Net periodic pension cost	$ (108)	$ (108)	$ (216)	$ (216)

XML

Fair Value (Financial instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 2,219,786	$ 2,314,493
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	169,613	168,758
Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	58,511	57,456
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,973,539	2,045,000
Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		168,758
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Presold mortgages in process of settlement	4,953	1,282
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	0
Foreclosed real estate		0
Significant Other Observable Inputs (Level 2) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,219,786	2,314,493
Presold mortgages in process of settlement	0	0
Significant Other Observable Inputs (Level 2) | Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	169,613	168,758
Significant Other Observable Inputs (Level 2) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	58,511	57,456
Significant Other Observable Inputs (Level 2) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,973,539	2,045,000
Significant Other Observable Inputs (Level 2) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	18,123	43,279
Significant Other Observable Inputs (Level 2) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	0
Foreclosed real estate		0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed real estate		38
Significant Unobservable Inputs (Level 3) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Presold mortgages in process of settlement	0	0
Significant Unobservable Inputs (Level 3) | Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	2,399	9,590
Foreclosed real estate		38
Estimated Fair Value | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,219,786	2,314,493
Presold mortgages in process of settlement	4,953	1,282
Estimated Fair Value | Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	169,613
Estimated Fair Value | Recurring | Government-sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	58,511	57,456
Estimated Fair Value | Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,973,539	2,045,000
Estimated Fair Value | Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	18,123	43,279
Estimated Fair Value | Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	$ 2,399	9,590
Foreclosed real estate		$ 38

XML

Fair Value (Schedule of Significant Unobservable Inputs) (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate		$ 38
Financing Receivable, Collateral Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans	$ 2,399	5,680
Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans		$ 3,910
Appraised value | Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed real estate, measurement input (as a percent)		0.10
Appraised value | Discount rate | Financing Receivable, Collateral Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)	0.10	0.10
PV of expected cash flows | Discount rate | Minimum | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)		0.055
PV of expected cash flows | Discount rate | Maximum | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)		0.111
PV of expected cash flows | Discount rate | Weighted Average | Financing Receivable, Cash Flow Dependent
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input (as a percent)		0.0676

XML

Fair Value (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	$ 101,215	$ 101,133
Securities held to maturity	537,821	541,700
Total loans, net of allowance	7,788,399	6,574,178
Accrued interest receivable	33,446	29,710
Bank-owned life insurance	181,659	164,592
Accrued interest payable	4,845	2,738
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	101,215	101,133
Due from banks, interest-bearing	259,460	169,185
Accrued interest receivable	33,446	29,710
Bank-owned life insurance	181,659	164,592
Carrying Amount | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held to maturity	537,821	541,700
Deposits	10,168,569	9,227,529
Borrowings	481,658	287,507
Accrued interest payable	4,845	2,738
Carrying Amount | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total loans, net of allowance	7,788,399	6,574,178
SBA Servicing Asset	3,781	4,004
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks, noninterest-bearing	101,215	101,133
Due from banks, interest-bearing	259,460	169,185
Accrued interest receivable	33,446	29,710
Bank-owned life insurance	181,659	164,592
Estimated Fair Value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held to maturity	441,881	432,528
Deposits	10,156,818	9,218,945
Borrowings	467,096	277,146
Accrued interest payable	4,845	2,738
Estimated Fair Value | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total loans, net of allowance	7,339,310	6,240,870
SBA Servicing Asset	$ 4,664	$ 4,721

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Stock-Based Compensation (Narrative) (Details)		3 Months Ended		6 Months Ended
	Jan. 01, 2023 shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) director $ / shares shares	Jun. 30, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense		$ 1,100,000	$ 600,000	$ 2,200,000	$ 1,500,000
Stock-based compensation tax benefit		261,000	$ 149,000	$ 520,000	$ 275,000
Number of directors | director				14
Compensation costs not yet recognized, options		0		$ 0
Expiration period				10 years
GrandSouth
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock portion, number of First Bancorp's stock for each share of acquiree common stock converted (in shares) | shares	0.91
Non-Employee Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director equity grants granted, value				$ 37,500
Long-Term Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		7,300,000		$ 7,300,000
Unrecognized compensation expense, period for recognition				2 years 2 months 12 days
Long-Term Restricted Stock Awards | Next Twelve Months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		4,000,000.0		$ 4,000,000.0
Long-Term Restricted Stock Awards | Remaining Quarters of 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 2,400,000		$ 2,400,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average replacement price (in dollars per share) | $ / shares		$ 24.85		$ 24.85
First Bancorp 2014 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remaining available for grant | shares		205,498		205,498

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Stock-Based Compensation (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock Awards	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Units
Nonvested, beginning (in shares) | shares	223,012
Granted during the period (in shares) | shares	143,380
Vested during the period (in shares) | shares	(25,811)
Forfeited or expired during the period (in shares) | shares	(791)
Nonvested, ending (in shares) | shares	339,790
Weighted-Average Grant-Date Fair Value
Nonvested, beginning (in dollars per share) | $ / shares	$ 36.14
Granted during the period (in dollars per share) | $ / shares	37.08
Vested during the period (in dollars per share) | $ / shares	24.52
Forfeited or expired during the period (in dollars per share) | $ / shares	37.88
Nonvested, ending (in dollars per share) | $ / shares	$ 37.15

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Stock-Based Compensation (Schedule of Company's Stock Options Outstanding) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Balance options outstanding, beginning (in shares) | shares	0
Granted (in shares) | shares	542,345
Exercised during the period (in shares) | shares	(192,178)
Forfeited or expired during the period (in shares) | shares	0
Balance options outstanding, end (in shares) | shares	350,167
Exercisable, end of period (in shares) | shares	350,167
Weighted- Average Exercise Price
Balance, beginning (in dollars per share) | $ / shares	$ 0
Granted (in dollars per share) | $ / shares	20.14
Exercised during the period (in dollars per share) | $ / shares	19.27
Forfeited or expired during the period (in dollars per share) | $ / shares	0
Balance, ending (in dollars per share) | $ / shares	20.62
Exercisable (in dollars per share) | $ / shares	$ 20.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Life in Years	6 years 3 months 7 days
Weighted- average contractual term (years), exercisable	6 years 3 months 7 days
Aggregate intrinsic value, outstanding | $	$ 3,270
Aggregate intrinsic value, exercisable | $	$ 3,270

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Stock-Based Compensation - Summary of Stock Options (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	350,167	0
Weighted Average Price	$ 20.62	$ 0
Weighted Average Remaining Life in Years	6 years 3 months 7 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	350,167
Weighted Average Price	$ 20.62
Weighted Average Remaining Life in Years	6 years 3 months 7 days
Stock Options | Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	112,822
Weighted Average Price	$ 15.63
Weighted Average Remaining Life in Years	4 years 7 months 24 days
Stock Options | Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	121,320
Share price (in dollars per share)	$ 18.19
Weighted Average Price	$ 18.19
Weighted Average Remaining Life in Years	5 years 11 months 23 days
Stock Options | Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	116,025
Weighted Average Price	$ 28.00
Weighted Average Remaining Life in Years	8 years 1 month 28 days
Stock Options | Minimum | Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share)	$ 13.79
Stock Options | Minimum | Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share)	18.20
Stock Options | Maximum | Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share)	18.18
Stock Options | Maximum | Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (in dollars per share)	$ 31.32

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Stock-Based Compensation - Summary of Stock Option Assumptions (Details) - Stock Options	6 Months Ended
	Jun. 30, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average replacement price (in dollars per share)	$ 24.85
Expected stock price volatility, weighted average	46.39%
Expected dividend yield	2.05%
Risk-free interest rate, weighted average	4.18%
Expected forfeiture rate	0
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	1 year 4 months 24 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	4 years 8 months 12 days

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic EPS:
Net income	$ 29,403	$ 36,585	$ 44,564	$ 70,554
Less: income allocated to restricted stock	(201)	(172)	(299)	(326)
Basic EPS per common share	$ 29,202	$ 36,413	$ 44,265	$ 70,228
Basic (in shares)	40,721,840	35,474,664	40,665,172	35,476,902
Basic (in dollars per share)	$ 0.72	$ 1.03	$ 1.09	$ 1.98
Diluted EPS:
Net income	$ 29,403	$ 36,585	$ 44,564	$ 70,554
Effect of dilutive securities	0	0	0	0
Diluted EPS per common share	$ 29,403	$ 36,585	$ 44,564	$ 70,554
Basic (in shares)	40,721,840	35,474,664	40,665,172	35,476,902
Effect of dilutive securities (in shares)	407,260	167,807	458,697	164,826
Diluted (in shares)	41,129,100	35,642,471	41,123,869	35,641,728
Diluted (in dollars per share)	$ 0.71	$ 1.03	$ 1.08	$ 1.98

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	$ (338,142)	$ (341,975)
Unrealized Loss on Securities Available for Sale
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	(440,145)	(444,063)
Deferred tax asset	101,894	102,046
Total accumulated other comprehensive income (loss)	(338,251)	(342,017)
Postretirement Plans Asset (Liability)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive income (loss)	143	54
Deferred tax asset	(34)	(12)
Total accumulated other comprehensive income (loss)	$ 109	$ 42

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Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,299,961	$ 1,117,490	$ 1,031,596	$ 1,230,575
Other comprehensive gain before reclassifications	(24,142)	(84,431)	3,766	(224,450)
Amounts reclassified from accumulated other comprehensive income	34	34	67	68
Net current-period other comprehensive income	(24,108)	(84,397)	3,833	(224,382)
Ending balance	1,297,642	1,062,343	1,297,642	1,062,343
Unrealized Loss on Securities Available for Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(314,109)	(164,717)	(342,017)	(24,698)
Other comprehensive gain before reclassifications	(24,142)	(84,431)	3,766	(224,450)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net current-period other comprehensive income	(24,142)	(84,431)	3,766	(224,450)
Ending balance	(338,251)	(249,148)	(338,251)	(249,148)
Postretirement Plans Asset (Liability)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	75	(238)	42	(272)
Other comprehensive gain before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	34	34	67	68
Net current-period other comprehensive income	34	34	67	68
Ending balance	109	(204)	109	(204)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(314,034)	(164,955)	(341,975)	(24,970)
Ending balance	$ (338,142)	$ (249,352)	$ (338,142)	$ (249,352)

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Revenue from Contracts with Customers (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
NONINTEREST INCOME
Service charges on deposit accounts	$ 4,114	$ 3,700	$ 8,008	$ 7,241
Other service charges and fees:
Bankcard interchange income, net	2,368	4,812	4,950	9,523
Other service charges and fees	3,255	1,490	6,572	2,753
Commissions from sales of financial products	1,413	1,151	2,719	2,096
SBA consulting fees	409	704	930	1,484
Noninterest income (in-scope of ASC 606)	11,559	11,857	23,179	23,097
Noninterest income (out-of-scope of ASC 606)	2,676	5,407	4,592	13,418
Total noninterest income	$ 14,235	$ 17,264	$ 27,771	$ 36,515