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 September 30, 2015

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	(I.R.S. Employer
Incorporation or Organization)	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

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. x YES          o NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x YES          o NO

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

o Large Accelerated Filer     x Accelerated Filer     o Non-Accelerated Filer     o Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o YES     x NO

The number of shares of the registrant's Common Stock outstanding on October 31, 2015 was 19,785,314.

INDEX

FIRST BANCORP AND SUBSIDIARIES

	Page
Part I.  Financial Information
Item 1 - Financial Statements
Consolidated Balance Sheets - September 30, 2015 and September 30, 2014 (With Comparative Amounts at December 31, 2014)	4
Consolidated Statements of Income - For the Periods Ended September 30, 2015 and 2014	5
Consolidated Statements of Comprehensive Income - For the Periods Ended September 30, 2015 and 2014	6
Consolidated Statements of Shareholders’ Equity - For the Periods Ended September 30, 2015 and 2014	7
Consolidated Statements of Cash Flows - For the Periods Ended September 30, 2015 and 2014	8
Notes to Consolidated Financial Statements	9
Item 2 – Management’s Discussion and Analysis of Consolidated Results of Operations and Financial Condition	44
Item 3 – Quantitative and Qualitative Disclosures About Market Risk	67
Item 4 – Controls and Procedures	69
Part II.  Other Information
Item 1 – Legal Proceedings	69
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 6 – Exhibits	70
Signatures	71

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, 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 2014 Annual Report on Form 10-K.

Page 3 

Part I. Financial Information

Item 1 - Financial Statements

First Bancorp and Subsidiaries

Consolidated Balance Sheets

($ in thousands)	September 30, 2015			December 31, 2014 (audited)			September 30, 2014
ASSETS
Cash and due from banks, noninterest-bearing	$	52,788			81,068			84,128
Due from banks, interest-bearing		165,271			171,248			251,111
Federal funds sold		730			768			1,275
Total cash and cash equivalents		218,789			253,084			336,514
Securities available for sale		178,765			158,018			153,238
Securities held to maturity (fair values of $162,858, $182,411, and $57,601)		160,048			178,687			53,821
Presold mortgages in process of settlement		3,150			6,019			5,761
Loans – non-covered		2,375,094			2,268,580			2,292,841
Loans – covered by FDIC loss share agreement		106,609			127,594			133,249
Total loans		2,481,703			2,396,174			2,426,090
Allowance for loan losses – non-covered		(28,155	)		(38,345	)		(41,564	)
Allowance for loan losses – covered		(1,900	)		(2,281	)		(2,567	)
Total allowance for loan losses		(30,055	)		(40,626	)		(44,131	)
Net loans		2,451,648			2,355,548			2,381,959
Premises and equipment		74,839			75,113			74,871
Accrued interest receivable		9,008			8,920			8,885
FDIC indemnification asset		7,649			22,569			25,328
Goodwill		65,835			65,835			65,835
Other intangible assets		1,516			2,058			2,252
Foreclosed real estate – non-covered		9,304			9,771			11,705
Foreclosed real estate – covered		1,569			2,350			3,237
Bank-owned life insurance		56,557			55,421			44,996
Other assets		34,164			24,990			27,209
Total assets	$	3,272,841			3,218,383			3,195,611
LIABILITIES
Deposits:   Noninterest bearing checking accounts	$	635,287			560,230			540,349
Interest bearing checking accounts		609,908			583,903			538,815
Money market accounts		584,490			551,002			548,832
Savings accounts		187,607			180,317			178,260
Time deposits of $100,000 or more		381,895			470,066			503,125
Other time deposits		308,566			350,388			369,631
Total deposits		2,707,753			2,695,906			2,679,012
Borrowings		176,394			116,394			116,394
Accrued interest payable		588			686			695
Other liabilities		16,932			17,698			14,695
Total liabilities		2,901,667			2,830,684			2,810,796
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Preferred stock, no par value per share.  Authorized: 5,000,000 shares
Series B issued & outstanding:  31,500, 63,500, and 63,500 shares		31,500			63,500			63,500
Series C, convertible, issued & outstanding:  728,706, 728,706, and 728,706 shares		7,287			7,287			7,287
Common stock, no par value per share.  Authorized: 40,000,000 shares
Issued & outstanding:  19,785,314, 19,709,881, and 19,705,381 shares		133,211			132,532			132,440
Retained earnings		199,886			184,958			179,656
Accumulated other comprehensive income (loss)		(710	)		(578	)		1,932
Total shareholders’ equity		371,174			387,699			384,815
Total liabilities and shareholders’ equity	$	3,272,841			3,218,383			3,195,611

See accompanying notes to consolidated financial statements.

Page 4 

First Bancorp and Subsidiaries

Consolidated Statements of Income

($ in thousands, except share data-unaudited)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
INTEREST INCOME
Interest and fees on loans	$	29,863			32,019			88,257			102,481
Interest on investment securities:
Taxable interest income		1,670			646			4,693			2,523
Tax-exempt interest income		455			470			1,375			1,411
Other, principally overnight investments		142			239			523			590
Total interest income		32,130			33,374			94,848			107,005
INTEREST EXPENSE
Savings, checking and money market accounts		292			263			842			774
Time deposits of $100,000 or more		657			1,058			2,236			3,413
Other time deposits		308			408			977			1,283
Borrowings		487			302			1,099			849
Total interest expense		1,744			2,031			5,154			6,319
Net interest income		30,386			31,343			89,694			100,686
Provision for loan losses – non-covered		267			1,279			1,372			5,802
Provision (reversal) for loan losses – covered		(1,681	)		206			(2,109	)		2,917
Total provision (reversal) for loan losses		(1,414	)		1,485			(737	)		8,719
Net interest income after provision for loan losses		31,800			29,858			90,431			91,967
NONINTEREST INCOME
Service charges on deposit accounts		2,951			3,426			8,724			10,445
Other service charges, commissions and fees		2,778			2,538			8,091			7,467
Fees from presold mortgage loans		481			807			2,020			2,204
Commissions from sales of insurance and financial products		691			685			1,917			1,985
Bank-owned life insurance income		382			311			1,136			956
Foreclosed property gains (losses) – non-covered		(857	)		(757	)		(1,932	)		(1,464	)
Foreclosed property gains (losses) – covered		(82	)		773			410			(2,517	)
FDIC indemnification asset income (expense), net		(2,865	)		(3,210	)		(7,085	)		(9,704	)
Securities gains (losses)		(1	)		—			(1	)		786
Other gains (losses)		28			35			(241	)		(282	)
Total noninterest income		3,506			4,608			13,039			9,876
NONINTEREST EXPENSES
Salaries		12,378			11,773			35,456			34,787
Employee benefits		2,221			2,550			6,702			7,147
Total personnel expense		14,599			14,323			42,158			41,934
Net occupancy expense		1,823			1,863			5,504			5,547
Equipment related expenses		900			953			2,805			2,905
Intangibles amortization		181			194			541			582
Other operating expenses		7,111			8,598			21,620			23,294
Total noninterest expenses		24,614			25,931			72,628			74,262
Income before income taxes		10,692			8,535			30,842			27,581
Income tax expense		3,687			2,956			10,605			9,680
Net income		7,005			5,579			20,237			17,901
Preferred stock dividends		(137	)		(217	)		(566	)		(651	)
Net income available to common shareholders	$	6,868			5,362			19,671			17,250
Earnings per common share:
Basic	$	0.35			0.27			1.00			0.88
Diluted		0.34			0.27			0.97			0.85
Dividends declared per common share	$	0.08			0.08			0.24			0.24
Weighted average common shares outstanding:
Basic		19,781,789			19,705,514			19,760,807			19,697,426
Diluted		20,512,959			20,437,739			20,491,973			20,431,836

See accompanying notes to consolidated financial statements.

Page 5 

First Bancorp and Subsidiaries

Consolidated Statements of Comprehensive Income

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands-unaudited)	2015			2014			2015			2014
Net income	$	7,005			5,579			20,237			17,901
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period, pretax		589			(47	)		(154	)		1,004
Tax (expense) benefit		(231	)		19			60			(391	)
Reclassification to realized (gains) losses		1			—			1			(786	)
Tax expense (benefit)		—			—			—			306
Postretirement Plans:
Amortization of unrecognized net actuarial (gain) loss		(16	)		(56	)		(63	)		(166	)
Tax expense (benefit)		6			(2	)		24			65
Other comprehensive income (loss)		349			(86	)		(132	)		32
Comprehensive income	$	7,354			5,493			20,105			17,933

See accompanying notes to consolidated financial statements.

Page 6 

First Bancorp and Subsidiaries

Consolidated Statements of Shareholders’ Equity

(In thousands, except per share - unaudited)	Preferred			Common Stock				Retained			Accumulated Other Comprehensive			Total Share- holders’
	Stock			Shares		Amount		Earnings			Income (Loss)			Equity
Balances, January 1, 2014	$	70,787			19,680	$	132,099		167,136			1,900			371,922
Net income									17,901						17,901
Cash dividends declared ($0.24 per common share)									(4,730	)					(4,730	)
Preferred dividends									(651	)					(651	)
Stock-based compensation					25		341								341
Other comprehensive income (loss)												32			32
Balances, September 30, 2014	$	70,787			19,705	$	132,440		179,656			1,932			384,815
Balances, January 1, 2015	$	70,787			19,710	$	132,532		184,958			(578	)		387,699
Net income									20,237						20,237
Preferred stock redeemed (Series B)		(32,000	)												(32,000	)
Stock option exercises					2		32								32
Cash dividends declared ($0.24 per common share)									(4,743	)					(4,743	)
Preferred dividends									(566	)					(566	)
Stock-based compensation					73		647								647
Other comprehensive income (loss)												(132	)		(132	)
Balances, September 30, 2015	$	38,787			19,785	$	133,211		199,886			(710	)		371,174

See accompanying notes to consolidated financial statements.

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First Bancorp and Subsidiaries

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
($ in thousands-unaudited)	2015			2014
Cash Flows From Operating Activities
Net income	$	20,237			17,901
Reconciliation of net income  to net cash provided by operating activities:
Provision (reversal) for loan losses		(737	)		8,719
Net security premium amortization		2,380			1,416
Purchase accounting accretion and amortization, net		2,265			(7,261	)
Foreclosed property losses and write-downs, net		1,522			3,981
Loss (gain) on securities available for sale		1			(786	)
Other losses		241			282
Decrease in net deferred loan costs		181			198
Depreciation of premises and equipment		3,375			3,477
Branch consolidation expense		—			925
Stock-based compensation expense		554			248
Amortization of intangible assets		541			582
Origination of presold mortgages in process of settlement		(76,728	)		(75,775	)
Proceeds from sales of presold mortgages in process of settlement		79,600			75,568
Decrease (increase) in accrued interest receivable		(88	)		764
Decrease (increase) in other assets		(990	)		7,302
Decrease in accrued interest payable		(98	)		(184	)
Decrease in other liabilities		(667	)		(429	)
Net cash provided by operating activities		31,589			36,928
Cash Flows From Investing Activities
Purchases of securities available for sale		(83,313	)		(54,258	)
Purchases of securities held to maturity		(2,003	)		—
Proceeds from sales of securities available for sale		—			47,473
Proceeds from maturities/issuer calls of securities available for sale		61,426			22,456
Proceeds from maturities/issuer calls of securities held to maturity		19,246			—
Purchases of Federal Reserve Bank stock and Federal Home Loan Bank stock, net		(9,597	)		(2,122	)
Net decrease (increase) in loans		(98,347	)		27,468
Proceeds from FDIC loss share agreements		8,758			16,810
Proceeds from sales of foreclosed real estate		6,426			27,908
Purchases of premises and equipment		(3,828	)		(3,278	)
Proceeds from sale of premises and equipment		847			1,232
Net cash provided (used) by investing activities		(100,385	)		83,689
Cash Flows From Financing Activities
Net increase (decrease) in deposits		11,847			(72,000	)
Net increase in borrowings		60,000			70,000
Cash dividends paid – common stock		(4,732	)		(4,726	)
Cash dividends paid – preferred stock		(646	)		(651	)
Redemption of preferred stock		(32,000	)		—
Proceeds from stock option exercises		32			—
Net cash provided (used) by financing activities		34,501			(7,377	)
Increase (decrease) in cash and cash equivalents		(34,295	)		113,240
Cash and cash equivalents, beginning of period		253,084			223,274
Cash and cash equivalents, end of period	$	218,789			336,514
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	5,252			6,503
Income taxes		11,139			3,009
Non-cash transactions:
Unrealized gain (loss) on securities available for sale, net of taxes		(94	)		133
Foreclosed loans transferred to other real estate		6,700			10,083

See accompanying notes to consolidated financial statements.

Page 8 

First Bancorp and Subsidiaries

Notes to Consolidated Financial Statements

(unaudited) For the Periods Ended September 30, 2015 and 2014

Note 1 - Basis of Presentation

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of September 30, 2015 and 2014 and the consolidated results of operations and consolidated cash flows for the periods ended September 30, 2015 and 2014. All such adjustments were of a normal, recurring nature. Reference is made to the 2014 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. The results of operations for the periods ended September 30, 2015 and 2014 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated all subsequent events through the date the financial statements were issued.

Note 2 – Accounting Policies

Note 1 to the 2014 Annual Report on Form 10-K filed with the SEC contains a description of the accounting policies followed by the Company and discussion of recent accounting pronouncements. The following paragraphs update that information as necessary.

In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Equity Method and Joint Ventures topic of the Accounting Standards Codification. The amendments provide criteria that must be met in order to apply a proportional amortization method to Low-Income Housing Tax Credit investments and provide guidance on the method used to amortize the investment, the impairment approach, and the eligibility criteria for entities that have other arrangements (e.g., loans) with the limited liability entity. The amendments were effective for the Company on January 1, 2015 for new investments in qualified affordable housing projects. These amendments did not have a material effect on the Company’s financial statements.

In January 2014, the FASB amended the Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (“OREO”). In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments were effective for the Company on January 1, 2015. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. These amendments did not have a material effect on the Company’s financial statements.

In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for interim and annual reporting periods beginning after December 15, 2017. The Company can apply the guidance using either a full retrospective approach or a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements.

In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The new guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments were effective for the Company on January 1, 2015. These amendments did not have a material effect on the Company’s financial statements.

Page 9 

In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments will be effective for the Company for fiscal years that begin after December 15, 2015. The Company will apply the guidance to all stock awards granted or modified after the amendments are effective. The Company does not expect these amendments to have a material effect on its financial statements.

In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively.

In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. The amendments are expected to result in the deconsolidation of many entities. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements.

In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect these amendments to have a material effect on its financial statements.

In April 2015, the FASB issued guidance which provides a practical expedient that permits the Company to measure defined benefit plan assets and obligations using the month-end that is closest to the Company’s fiscal year-end. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect these amendments to have a material effect on its financial statements.

In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification, correct unintended application of guidance, and make minor improvements that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements.

In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements.

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

Note 3 – Reclassifications

Certain amounts reported in the period ended September 30, 2014 have been reclassified to conform to the presentation for September 30, 2015. These reclassifications had no effect on net income or shareholders’ equity for the periods presented, nor did they materially impact trends in financial information.

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Note 4 – Equity-Based Compensation Plans

At September 30, 2015, the Company had the following equity-based compensation plans: the First Bancorp 2014 Equity Plan, the First Bancorp 2007 Equity Plan, and the First Bancorp 2004 Stock Option Plan. The Company’s shareholders approved all equity-based compensation plans. The First Bancorp 2014 Equity Plan became effective upon the approval of shareholders on May 8, 2014. As of September 30, 2015, the First Bancorp 2014 Equity Plan was the only plan that had shares available for future grants.

The First Bancorp 2014 Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the plans’ participants with those of the Company and its shareholders. The First Bancorp 2014 Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted stock, restricted performance stock, unrestricted stock, and performance units.

Recent equity grants to employees have either had performance vesting conditions, service vesting conditions, or both. Compensation expense for these grants is recorded over the various service periods based on the estimated number of equity grants that are probable to vest. No compensation cost is recognized for grants that do not vest and any previously recognized compensation cost will be reversed.

As it relates to director equity grants, the Company grants common shares, valued at approximately $16,000 to each non-employee director (currently eight in total) in June of each year. Compensation expense associated with these director grants is recognized on the date of grant since there are no vesting conditions. On June 1, 2015, the Company granted 8,176 shares of common stock to non-employee directors (1,022 shares per director), at a fair market value of $15.75 per share, which was the closing price of the Company’s common stock on that date. On June 2, 2014, the Company granted 10,065 shares of common stock to non-employee directors (915 shares per director), at a fair market value of $17.60 per share, which was the closing price of the Company’s common stock on that date.

Pursuant to an employment agreement, the Company granted the chief executive officer 75,000 non-qualified stock options and 40,000 shares of restricted stock during the third quarter of 2012. The option award would have fully vested on December 31, 2014 if the Company achieved a certain earnings target for 2014. The Company did not achieve the applicable target, and therefore, the option award was forfeited as of December 31, 2014. No compensation expense was recognized for the option award. The restricted stock award will vest in full on December 31, 2015, if the Company achieves a certain earnings target in 2015, and will be forfeited if the applicable target is not achieved. Based on current conditions, the Company has concluded that it is not probable that the restricted stock award will vest, and thus no compensation expense has been recorded.

In 2014, the Company’s Compensation Committee determined that seven of the Company’s senior officers would receive 50% of the bonus earned under the Company’s annual incentive plan in shares of restricted stock, instead of being exclusively cash, which had been the Company’s prior practice. This resulted in the Company granting a total of 14,882 shares of restricted common stock to those officers on February 24, 2015. The shares vest annually in one-third increments beginning on December 31, 2015. The total compensation expense associated with this grant was $258,000, which is being recorded over the vesting period. The Company recorded $23,300 and $69,800 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

Also, on February 24, 2015, the Company granted a total of 30,404 shares of restricted common stock to eleven senior officers. The shares vest annually in one-third increments beginning on December 31, 2015. The total compensation expense associated with this grant was $527,000, which is being recorded over the vesting period. The Company recorded $80,500 and $241,500 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

On April 10, 2015, the Company granted a total of 14,425 shares of restricted common stock to five employees. The shares vest three years from the date of the grant on April 10, 2018. The total compensation expense associated with this grant was $249,000, which is being recorded over the vesting period. The Company recorded $20,700 and $41,400 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

Page 11 

In September 2015, the Company granted a total of 5,907 shares of restricted common stock to three employees. The shares vest three years from the date of the grant. The total compensation expense associated with this grant was $100,005, which is being recorded over the vesting period. The Company recorded $2,800 in compensation expense during the three months ended September 30, 2015 related to these grants.

Based on the Company’s performance in 2013, the Company granted 15,657 shares of restricted common stock to the chief executive officer on February 11, 2014 with a two year minimum vesting period. The total compensation expense associated with this grant was $278,200 and the grant will fully vest on January 1, 2016. One third of this value was expensed during each of 2013 and 2014, with the remaining one third being expensed in 2015. The Company recorded $23,200 and $69,600 in compensation expense during each of the three and nine months ended September 30, 2015 and 2014.

Under the terms of the predecessor plans and the First Bancorp 2014 Equity Plan, options can have a term of no longer than ten years, and all options granted thus far under these plans have had a term of ten years. The Company’s options provide for immediate vesting under certain conditions if there is a change in control (as defined in the plans).

At September 30, 2015, there were 128,464 options outstanding under the Company’s three option plans, with exercise prices ranging from $14.35 to $22.04. At September 30, 2015, there were 916,141 shares remaining available for grant under the First Bancorp 2014 Equity Plan.

The Company issues new shares of common stock when options are exercised.

The Company measures the fair value of each option award on the date of grant using the Black-Scholes option-pricing model. The Company determines the assumptions used in the Black-Scholes option pricing model as follows: the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant; the dividend yield is based on the Company’s dividend yield at the time of the grant (subject to adjustment if the dividend yield on the grant date is not expected to approximate the dividend yield over the expected life of the option); the volatility factor is based on the historical volatility of the Company’s stock (subject to adjustment if future volatility is reasonably expected to differ from the past); and the weighted-average expected life is based on the historical behavior of employees related to exercises, forfeitures and cancellations.

The Company recorded total stock-based compensation expense of $150,000 and $23,000 for the three months ended September 30, 2015 and 2014, respectively, and $554,000 and $248,000 for the nine months ended September 30, 2015 and 2014, respectively. Of the $554,000 in expense that was recorded in 2015, approximately $129,000 related to the June 1, 2015 director grants, which is classified as “other operating expenses” in the Consolidated Statements of Income. The remaining $425,000 in expense relates to the employee grants discussed above and is recorded as “salaries expense.” Stock based compensation is reflected as an adjustment to cash flows from operating activities on the Company’s Consolidated Statement of Cash Flows. The Company recognized $216,000 and $97,000 of income tax benefits related to stock based compensation expense in the income statement for the nine months ended September 30, 2015 and 2014, respectively.

As noted above, certain of the Company’s stock option grants contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period. The Company has elected to recognize compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for the entire award. Compensation expense is based on the estimated number of stock options and awards that will ultimately vest. Over the past five years, there have only been minimal amounts of forfeitures, and therefore the Company assumes that all awards granted without performance conditions will become vested.

Page 12 

The following table presents information regarding the activity for the first nine months of 2015 related to the Company’s stock options outstanding:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term (years)		Aggregate Intrinsic Value
Balance at January 1, 2015		179,102		$	18.55
Granted		—			—
Exercised		(2,250	)		14.35
Forfeited		—			—
Expired		(48,388	)		20.07
Outstanding at September 30, 2015		128,464		$	18.05		2.0	$	70,000
Exercisable at September 30, 2015		128,464		$	18.05		2.0	$	70,000

During the nine months ended September 30, 2015, the Company received $32,000 as a result of stock option exercises. The Company did not have any stock option exercises during the nine months ended September 30, 2014. The Company recorded no tax benefits from the exercise of nonqualified stock options during the nine months ended September 30, 2015 or 2014.

The following table presents information regarding the activity the first nine months of 2015 related to the Company’s outstanding restricted stock:

	Long-Term Restricted Stock
	Number of Units		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2015		45,219	$	10.68
Granted during the period		65,618		17.28
Vested during the period		—		—
Forfeited or expired during the period		—		—
Nonvested at September 30, 2015		110,837	$	14.59

Note 5 – Earnings Per Common Share

Basic Earnings Per Common Share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. Currently, the Company’s potentially dilutive common stock issuances relate to stock option grants under the Company’s equity-based compensation plans and the Company’s Series C Preferred Stock, which is convertible into common stock on a one-for-one ratio.

In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows. As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities. As it relates to the Series C Preferred Stock, it is assumed that the preferred stock was converted to common stock during the reporting period. Dividends on the preferred stock are added back to net income and the shares assumed to be converted are included in the number of shares outstanding.

Page 13 

If any of the potentially dilutive common stock issuances have an anti-dilutive effect, which is the case when a net loss is reported, the potentially dilutive common stock issuance is disregarded.

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

	For the Three Months Ended September 30,
	2015						2014
($ in thousands except per      share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	6,868		19,781,789	$	0.35	$	5,362		19,705,514	$	0.27
Effect of Dilutive Securities		58		731,170				58		732,225
Diluted EPS per common share	$	6,926		20,512,959	$	0.34	$	5,420		20,437,739	$	0.27

	For the Nine Months Ended September 30,
	2015						2014
($ in thousands except per      share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	19,671		19,760,807	$	1.00	$	17,250		19,697,426	$	0.88
Effect of Dilutive Securities		175		731,166				175		734,410
Diluted EPS per common share	$	19,846		20,491,973	$	0.97	$	17,425		20,431,836	$	0.85

For both the three and nine months ended September 30, 2015, there were 52,500 options that were antidilutive because the exercise price exceeded the average market price for the period, and thus are not included in the calculation to determine the effect of dilutive securities. For both the three and nine months ended September 30, 2014, there were 93,000 options that were anti-dilutive. Also, for both the three and nine months ended September 30, 2014, the Company excluded 75,000 options that had an exercise price below the average market price for the period, but had performance vesting requirements that the Company concluded were not probable to vest.

Note 6 – Securities

The book values and approximate fair values of investment securities at September 30, 2015 and December 31, 2014 are summarized as follows:

	September 30, 2015									December 31, 2014
	Amortized		Fair		Unrealized					Amortized		Fair		Unrealized
($ in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Securities available for sale:
Government-sponsored enterprise securities	$	27,789		27,850		69		(8	)		27,546		27,521		33		(58	)
Mortgage-backed securities		126,508		125,836		520		(1,192	)		130,073		129,510		751		(1,314	)
Corporate bonds		25,223		24,948		4		(279	)		1,000		865		—		(135	)
Equity securities		88		131		54		(11	)		89		122		46		(13	)
Total available for sale	$	179,608		178,765		647		(1,490	)		158,708		158,018		830		(1,520	)
Securities held to maturity:
Mortgage-backed securities	$	107,787		107,360		—		(427	)		124,924		124,861		45		(108	)
State and local governments		52,261		55,498		3,258		(21	)		53,763		57,550		3,787		—
Total held to maturity	$	160,048		162,858		3,258		(448	)		178,687		182,411		3,832		(108	)

Page 14 

Included in mortgage-backed securities at September 30, 2015 were collateralized mortgage obligations with an amortized cost of $56,000 and a fair value of $57,000. Included in mortgage-backed securities at December 31, 2014 were collateralized mortgage obligations with an amortized cost of $108,000 and a fair value of $111,000. All of the Company’s mortgage-backed securities, including the collateralized mortgage obligations, were issued by government-sponsored corporations.

The following table presents information regarding securities with unrealized losses at September 30, 2015:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	—		—		2,991		8		2,991		8
Mortgage-backed securities		141,334		685		31,578		934		172,912		1,619
Corporate bonds		21,991		219		940		60		22,931		279
Equity securities		—		—		22		11		22		11
State and local governments		829		21		—		—		829		21
Total temporarily impaired securities	$	164,154		925		35,531		1,013		199,685		1,938

The following table presents information regarding securities with unrealized losses at December 31, 2014:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	5,489		11		2,953		47		8,442		58
Mortgage-backed securities		69,985		318		33,557		1,104		103,542		1,422
Corporate bonds		—		—		865		135		865		135
Equity securities		—		—		17		13		17		13
State and local governments		—		—		—		—		—		—
Total temporarily impaired securities	$	75,474		329		37,392		1,299		112,866		1,628

In the above tables, all of the non-equity securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. The Company has evaluated the collectability of each of these bonds and has concluded that there is no other-than-temporary impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The Company has also concluded that each of the equity securities in an unrealized loss position at September 30, 2015 and December 31, 2014 was in such a position due to temporary fluctuations in the market prices of the securities. The Company’s policy is to record an impairment charge for any of these equity securities that remains in an unrealized loss position for twelve consecutive months unless the amount is insignificant.

Page 15 

The book values and approximate fair values of investment securities at September 30, 2015, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
($ in thousands)	Cost		Value		Cost		Value
Debt securities
Due within one year	$	—		—		772		780
Due after one year but within five years		27,789		27,850		12,734		13,446
Due after five years but within ten years		20,223		20,088		37,320		39,847
Due after ten years		5,000		4,860		1,435		1,425
Mortgage-backed securities		126,508		125,836		107,787		107,360
Total debt securities		179,520		178,634		160,048		162,858
Equity securities		88		131		—		—
Total securities	$	179,608		178,765		160,048		162,858

At September 30, 2015 and December 31, 2014 investment securities with carrying values of $135,652,000 and $100,113,000, respectively, were pledged as collateral for public deposits.

The Company recorded insignificant losses on securities during the three and nine month periods ended September 30, 2015. During the nine months ended September 30, 2014, the Company sold approximately $47,473,000 in securities and recorded a net gain of $786,000 related to the sale.

The aggregate carrying amount of cost-method investments was $15,468,000 and $6,016,000 at September 30, 2015 and December 31, 2014, respectively, which is recorded within the line item “other assets” on the Company’s Consolidated Balance Sheets. These investments are comprised of both Federal Home Loan Bank (“FHLB”) stock and Federal Reserve Bank of Richmond (“FRB”) stock. The FHLB stock had a cost and fair value of $8,421,000 at September 30, 2015 and $6,016,000 at December 31, 2014, 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. Periodically the FHLB recalculates the Company’s required level of holdings, and the Company either buys more stock or the FHLB redeems a portion of the stock at cost. The FRB stock had a cost and fair value of $7,047,000 at September 30, 2015. The Company was required to purchase this stock when it became a member of the Federal Reserve System in the second quarter of 2015. The Company determined that neither stock was impaired at either period end.

Note 7 – Loans and Asset Quality Information

The loans and foreclosed real estate that were acquired in FDIC-assisted transactions are covered by loss share agreements between the FDIC and the Company’s banking subsidiary, First Bank, which afford First Bank significant loss protection - see Note 2 to the financial statements included in the Company’s 2011 Annual Report on Form 10-K for detailed information regarding these transactions. Because of the loss protection provided by the FDIC, the risk of the loans and foreclosed real estate that are covered by loss share agreements are significantly different from those assets not covered under the loss share agreements. Accordingly, the Company presents separately loans subject to the loss share agreements as “covered loans” in the information below and loans that are not subject to the loss share agreements as “non-covered loans.”

On July 1, 2014, one of the Company’s loss share agreements with the FDIC expired. The agreement that expired related to the non-single family assets of Cooperative Bank, a failed bank acquisition in 2009. Accordingly, the remaining balances associated with these loans and foreclosed real estate were transferred from the covered portfolio to the non-covered portfolio on July 1, 2014. The Company will bear all future losses on this portfolio of loans and foreclosed real estate. Immediately prior to the transfer to non-covered status, the loans in this portfolio had a carrying value of $39.7 million and the foreclosed real estate in this portfolio had a carrying value of $3.0 million. Of the $39.7 million in loans that lost loss share protection, approximately $9.7 million were on nonaccrual status and $2.1 million were classified as accruing troubled debt restructurings as of July 1, 2014. Additionally, approximately $1.7 million in allowance for loan losses associated with this portfolio of loans was transferred to the allowance for loan losses for non-covered loans on July 1, 2014.

Page 16 

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

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
All loans (non-covered and covered):
Commercial, financial, and agricultural	$	199,630		8%	$	160,878		7%	$	165,215		7%
Real estate – construction, land development & other land loans		294,426		12%		288,148		12%		298,091		13%
Real estate – mortgage – residential (1-4 family) first mortgages		770,691		31%		789,871		33%		806,954		33%
Real estate – mortgage – home equity loans / lines of credit		224,639		9%		223,500		9%		224,553		9%
Real estate – mortgage – commercial and other		944,432		38%		882,127		37%		879,122		36%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,480,938		100%		2,395,228		100%		2,425,360		100%
Unamortized net deferred loan costs		765				946				730
Total loans	$	2,481,703			$	2,396,174			$	2,426,090

The following is a summary of the major categories of non-covered loans outstanding:

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Non-covered loans:
Commercial, financial, and agricultural	$	198,624		9%	$	159,195		7%	$	162,994		7%
Real estate – construction, land development & other land loans		290,465		12%		282,604		13%		292,401		13%
Real estate – mortgage – residential (1-4 family) first mortgages		692,431		29%		700,101		31%		714,879		31%
Real estate – mortgage – home equity loans / lines of credit		213,435		9%		210,697		9%		211,477		9%
Real estate – mortgage – commercial and other		932,254		39%		864,333		38%		858,935		38%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,374,329		100%		2,267,634		100%		2,292,111		100%
Unamortized net deferred loan costs		765				946				730
Total non-covered loans	$	2,375,094			$	2,268,580			$	2,292,841

The carrying amount of the covered loans at September 30, 2015 consisted of impaired and nonimpaired purchased loans (as determined on the date of acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	59		116		947		975		1,006		1,091
Real estate – construction, land development & other land loans		297		522		3,664		3,912		3,961		4,434
Real estate – mortgage – residential (1-4 family) first mortgages		109		636		78,151		91,570		78,260		92,206
Real estate – mortgage – home equity loans / lines of credit		8		15		11,196		12,912		11,204		12,927
Real estate – mortgage – commercial and other		1,047		3,154		11,131		11,871		12,178		15,025
Total	$	1,520		4,443		105,089		121,240		106,609		125,683

Page 17 

The carrying amount of the covered loans at December 31, 2014 consisted of impaired and nonimpaired purchased loans (as determined on the date of the acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	66		123		1,617		1,661		1,683		1,784
Real estate – construction, land development & other land loans		309		534		5,235		6,471		5,544		7,005
Real estate – mortgage – residential (1-4 family) first mortgages		362		1,298		89,408		104,678		89,770		105,976
Real estate – mortgage – home equity loans / lines of credit		12		19		12,791		15,099		12,803		15,118
Real estate – mortgage – commercial and other		1,201		3,209		16,593		17,789		17,794		20,998
Total	$	1,950		5,183		125,644		145,698		127,594		150,881

The following table presents information regarding covered purchased nonimpaired loans since December 31, 2013. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond.

($ in thousands)
Carrying amount of nonimpaired covered loans at December 31, 2013	$	207,167
Principal repayments		(50,183	)
Transfers to foreclosed real estate		(5,061	)
Transfers to non-covered loans due to expiration of loss-share agreement		(38,987	)
Net loan (charge-offs) / recoveries		(3,301	)
Accretion of loan discount		16,009
Carrying amount of nonimpaired covered loans at December 31, 2014		125,644
Principal repayments		(25,051	)
Transfers to foreclosed real estate		(1,129	)
Net loan (charge-offs) / recoveries		1,728
Accretion of loan discount		3,897
Carrying amount of nonimpaired covered loans at September 30, 2015	$	105,089

As reflected in the table above, the Company accreted $3,897,000 of the loan discount on purchased nonimpaired loans into interest income during the first nine months of 2015. As of September 30, 2015, there was remaining loan discount of $14,151,000 related to purchased accruing loans. If these loans continue to be repaid by the borrowers, the Company will accrete the remaining loan discount into interest income over the covered lives of the respective loans. In such circumstances, a corresponding entry to reduce the indemnification asset will be recorded amounting to approximately 80% of the loan discount accretion, which reduces noninterest income. At September 30, 2015, the Company also had $2,043,000 of loan discount related to purchased nonaccruing loans. It is not expected that a significant amount of this discount will be accreted, as it represents estimated losses on these loans.

Page 18 

The following table presents information regarding all purchased impaired loans since December 31, 2013, the majority of which are covered loans. The Company has applied the cost recovery method to all purchased impaired loans at their respective acquisition dates due to the uncertainty as to the timing of expected cash flows, as reflected in the following table.

($ in thousands) Purchased Impaired Loans	Contractual Principal Receivable			Fair Market Value Adjustment – Write Down (Nonaccretable Difference)			Carrying Amount
Balance at December 31, 2013	$	6,263			3,121			3,142
Change due to payments received		(599	)		227			(826	)
Change due to loan charge-off		(2	)		29			(31	)
Other		197			(115	)		312
Balance at December 31, 2014	$	5,859			3,262			2,597
Change due to payments received		(330	)		55			(385	)
Transfer to foreclosed real estate		(431	)		(336	)		(95	)
Other		(3	)		(3	)		—
Balance at September 30, 2015	$	5,095			2,978			2,117

Because of the uncertainty of the expected cash flows, the Company is accounting for each purchased impaired loan under the cost recovery method, in which all cash payments are applied to principal. Thus, there is no accretable yield associated with the above loans. During the first nine months of 2015 and 2014, the Company received $56,000 and $179,000, respectively, in payments that exceeded the initial carrying amount of the purchased impaired loans, which is included in the loan discount accretion amount discussed previously.

Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate. Nonperforming assets are summarized as follows:

ASSET QUALITY DATA ($ in thousands)	September 30, 2015		December 31, 2014		September 30, 2014
Non-covered nonperforming assets
Nonaccrual loans	$	42,347	$	50,066	$	53,620
Restructured loans - accruing		29,250		35,493		31,501
Accruing loans > 90 days past due		—		—		—
Total non-covered nonperforming loans		71,597		85,559		85,121
Foreclosed real estate		9,304		9,771		11,705
Total non-covered nonperforming assets	$	80,901	$	95,330	$	96,826
Covered nonperforming assets
Nonaccrual loans (1)	$	5,373	$	10,508	$	10,478
Restructured loans - accruing		3,825		5,823		6,273
Accruing loans > 90 days past due		—		—		—
Total covered nonperforming loans		9,198		16,331		16,751
Foreclosed real estate		1,569		2,350		3,237
Total covered nonperforming assets	$	10,767	$	18,681	$	19,988
Total nonperforming assets	$	91,668	$	114,011	$	116,814

(1) At September 30, 2015, December 31, 2014, and September 30, 2014, the contractual balance of the nonaccrual loans covered by FDIC loss share agreements was $10.1 million, $16.0 million, and $16.3 million, respectively.

At September 30, 2015, the Company had $3.0 million in residential mortgage loans in process of foreclosure.

The remaining tables in this note present information derived from the Company’s allowance for loan loss model. Relevant accounting guidance requires certain disclosures to be disaggregated based on how the Company develops its allowance for loan losses and manages its credit exposure. This model combines loan types in a different manner than the tables previously presented.

Page 19 

The following table presents the Company’s nonaccrual loans as of September 30, 2015.

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	470		22		492
Commercial – secured		2,253		—		2,253
Secured by inventory and accounts receivable		84		23		107
Real estate – construction, land development & other land loans		5,374		60		5,434
Real estate – residential, farmland and multi-family		21,936		3,270		25,206
Real estate – home equity lines of credit		2,110		362		2,472
Real estate – commercial		9,762		1,636		11,398
Consumer		358		—		358
Total	$	42,347		5,373		47,720

The following table presents the Company’s nonaccrual loans as of December 31, 2014.

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	187		1		188
Commercial – secured		2,927		—		2,927
Secured by inventory and accounts receivable		454		103		557
Real estate – construction, land development & other land loans		7,891		1,140		9,031
Real estate – residential, farmland and multi-family		24,459		7,785		32,244
Real estate – home equity lines of credit		2,573		278		2,851
Real estate – commercial		11,070		1,201		12,271
Consumer		505		—		505
Total	$	50,066		10,508		60,574

The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2015.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	734		—		470		49,325		50,529
Commercial - secured		772		73		2,253		114,989		118,087
Secured by inventory and accounts receivable		366		—		84		33,177		33,627
Real estate – construction, land development & other land loans		938		90		5,374		269,002		275,404
Real estate – residential, farmland, and multi-family		5,404		1,948		21,936		822,084		851,372
Real estate – home equity lines of credit		996		332		2,110		199,180		202,618
Real estate - commercial		4,013		234		9,762		785,182		799,191
Consumer		379		239		358		42,525		43,501
Total non-covered	$	13,602		2,916		42,347		2,315,464		2,374,329
Unamortized net deferred loan costs										765
Total non-covered loans									$	2,375,094
Covered loans	$	340		751		5,373		100,145		106,609
Total loans	$	13,942		3,667		47,720		2,415,609		2,481,703

Page 20 

The Company had no non-covered or covered loans that were past due greater than 90 days and accruing interest at September 30, 2015.

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2014.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	191		35		187		36,871		37,284
Commercial - secured		1,003		373		2,927		102,671		106,974
Secured by inventory and accounts receivable		30		225		454		21,761		22,470
Real estate – construction, land development & other land loans		1,950		139		7,891		247,535		257,515
Real estate – residential, farmland, and multi-family		11,272		3,218		24,459		807,884		846,833
Real estate – home equity lines of credit		1,585		352		2,573		194,067		198,577
Real estate - commercial		3,738		996		11,070		738,981		754,785
Consumer		695		131		505		41,865		43,196
Total non-covered	$	20,464		5,469		50,066		2,191,635		2,267,634
Unamortized net deferred loan costs										946
Total non-covered loans									$	2,268,580
Covered loans	$	4,385		964		10,508		111,737		127,594
Total loans	$	24,849		6,433		60,574		2,303,372		2,396,174

The Company had no non-covered or covered loans that were past due greater than 90 days and accruing interest at December 31, 2014.

Page 21 

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and nine months ended September 30, 2015.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated		Total
As of and for the three months ended September 30, 2015
Beginning balance	$	5,564			5,016			9,641			3,167			4,723			948			1,096		30,155
Charge-offs		(523	)		(574	)		(1,949	)		(31	)		(198	)		(369	)		—		(3,644	)
Recoveries		387			625			98			43			140			84			—		1,377
Provisions		(185	)		(1,105	)		1,341			(565	)		249			216			316		267
Ending balance	$	5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
As of and for the nine months ended September 30, 2015
Beginning balance	$	8,391			6,470			9,720			3,731			9,045			841			147		38,345
Charge-offs		(3,550	)		(2,532	)		(4,362	)		(594	)		(2,147	)		(1,222	)		—		(14,407	)
Recoveries		735			942			270			88			535			275			—		2,845
Provisions		(333	)		(918	)		3,503			(611	)		(2,519	)		985			1,265		1,372
Ending balance	$	5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
Ending balances as of September 30, 2015:  Allowance for loan losses
Individually evaluated for impairment	$	135			250			1,575			—			449			—			—		2,409
Collectively evaluated for impairment	$	5,108			3,712			7,556			2,614			4,465			879			1,412		25,746
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—		—
Loans receivable as of September 30, 2015:
Ending balance – total	$	202,243			275,404			851,372			202,618			799,191			43,501			—		2,374,329
Unamortized net deferred loan costs																						765
Total non-covered loans																					$	2,375,094
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$	986			4,685			23,599			—			16,655			—			—		45,925
Collectively evaluated for impairment	$	201,257			270,719			827,773			202,618			781,939			43,501			—		2,327,807
Loans acquired with deteriorated credit quality	$	—			—			—			—			597			—			—		597

Page 22 

The following table presents the activity in the allowance for loan losses for non-covered loans for the year ended December 31, 2014.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated			Total
As of and for the year ended December 31, 2014
Beginning balance	$	7,432			12,966			15,142			1,838			5,524			1,513			(152	)		44,263
Charge-offs		(4,039	)		(2,148	)		(4,417	)		(912	)		(3,048	)		(1,724	)		—			(16,288	)
Recoveries		140			398			331			45			181			451			—			1,546
Transfer from covered category		36			813			51			—			833			4			—			1,737
Provisions		4,822			(5,559	)		(1,387	)		2,760			5,555			597			299			7,087
Ending balance	$	8,391			6,470			9,720			3,731			9,045			841			147			38,345
Ending balances as of December 31, 2014:  Allowance for loan losses
Individually evaluated for impairment	$	211			415			1,686			—			165			—			—			2,477
Collectively evaluated for impairment	$	8,180			6,055			8,034			3,731			8,880			841			147			35,868
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—
Loans receivable as of December 31, 2014:
Ending balance – total	$	166,728			257,515			846,833			198,577			754,785			43,196			—			2,267,634
Unamortized net deferred loan costs																							946
Total non-covered loans																						$	2,268,580
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	784			7,991			20,263			476			20,263			7			—			53,531
Collectively evaluated for impairment	$	165,944			249,524			733,875			198,101			733,875			43,189			—			2,213,456
Loans acquired with deteriorated credit quality	$	—			—			—			—			647			—			—			647

Page 23 

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and nine months ended September 30, 2014.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated			Total
As of and for the three months ended September 30, 2014
Beginning balance	$	8,948			7,414			11,132			3,755			9,212			906			599			41,966
Charge-offs		(840	)		(470	)		(874	)		(116	)		(987	)		(463	)		—			(3,750	)
Recoveries		32			40			111			7			14			128			—			332
Transfer from covered category		36			813			51			—			833			4			—			1,737
Provisions		1,185			(574	)		(194	)		49			971			343			(501	)		1,279
Ending balance	$	9,361			7,223			10,226			3,695			10,043			918			98			41,564
As of and for the nine months ended September 30, 2014
Beginning balance	$	7,432			12,966			15,142			1,838			5,524			1,513			(152	)		44,263
Charge-offs		(3,506	)		(1,704	)		(2,505	)		(619	)		(1,876	)		(1,262	)		—			(11,472	)
Recoveries		81			349			290			18			135			361			—			1,234
Transfer from covered category		36			813			51			—			833			4			—			1,737
Provisions		5,318			(5,201	)		(2,752	)		2,458			5,427			302			250			5,802
Ending balance	$	9,361			7,223			10,226			3,695			10,043			918			98			41,564
Ending balances as of September 30, 2014:  Allowance for loan losses
Individually evaluated for impairment	$	381			513			1,771			—			229			20			—			2,914
Collectively evaluated for impairment	$	8,980			6,710			8,455			3,695			9,814			898			98			38,650
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—
Loans receivable as of September 30, 2014:
Ending balance – total	$	170,648			266,419			860,218			198,977			752,108			43,741			—			2,292,111
Unamortized net deferred loan costs																							730
Total non-covered loans																						$	2,292,841
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	972			8,613			24,233			481			20,128			34			—			54,461
Collectively evaluated for impairment	$	169,676			257,806			835,985			198,496			731,316			43,707			—			2,236,986
Loans acquired with deteriorated credit quality	$	—			—			—			—			664			—			—			664

Page 24 

The following table presents the activity in the allowance for loan losses for covered loans for the three and nine months ended September 30, 2015.

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2015
Beginning balance	$	1,935
Charge-offs		(84	)
Recoveries		1,730
Provisions		(1,681	)
Ending balance	$	1,900
As of and for the nine months ended September 30, 2015
Beginning balance	$	2,281
Charge-offs		(1,200	)
Recoveries		2,928
Provisions		(2,109	)
Ending balance	$	1,900
Ending balances as of September 30, 2015: Allowance for loan losses
Individually evaluated for impairment	$	466
Collectively evaluated for impairment		1,391
Loans acquired with deteriorated credit quality		43
Loans receivable as of September 30, 2015:
Ending balance – total	$	106,609
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$	5,197
Collectively evaluated for impairment		99,892
Loans acquired with deteriorated credit quality		1,520

The following table presents the activity in the allowance for loan losses for covered loans for the year ended December 31, 2014.

($ in thousands)	Covered Loans
As of and for the year ended December 31, 2014
Beginning balance	$	4,242
Charge-offs		(6,948	)
Recoveries		3,616
Transferred to non-covered		(1,737	)
Provisions		3,108
Ending balance	$	2,281
Ending balances as of December 31, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,161
Collectively evaluated for impairment		1,046
Loans acquired with deteriorated credit quality		74
Loans receivable as of December 31, 2014:
Ending balance – total	$	127,594
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	11,484
Collectively evaluated for impairment		114,160
Loans acquired with deteriorated credit quality		1,950

Page 25 

The following table presents the activity in the allowance for loan losses for covered loans for the three and nine months ended September 30, 2014.

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2014
Beginning balance	$	3,830
Charge-offs		(195	)
Recoveries		463
Transferred to non-covered		(1,737	)
Provisions		206
Ending balance	$	2,567
As of and for the nine months ended September 30, 2014
Beginning balance	$	4,242
Charge-offs		(5,865	)
Recoveries		3,010
Transferred to non-covered		(1,737	)
Provisions		2,917
Ending balance	$	2,567
Ending balances as of September 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,537
Collectively evaluated for impairment		1,003
Loans acquired with deteriorated credit quality		27
Loans receivable as of September 30, 2014:
Ending balance – total	$	133,249
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	11,258
Collectively evaluated for impairment		119,953
Loans acquired with deteriorated credit quality		2,038

Page 26 

The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2015.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	271		311		—		102
Commercial - secured		92		95		—		56
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		3,729		7,090		—		4,716
Real estate – residential, farmland, and multi-family		9,466		10,839		—		9,548
Real estate – home equity lines of credit		—		—		—		119
Real estate – commercial		12,531		14,149		—		15,731
Consumer		—		—		—		2
Total non-covered impaired loans with no allowance	$	26,089		32,484		—		30,274
Total covered impaired loans with no allowance	$	3,742		7,380		—		5,701
Total impaired loans with no allowance recorded	$	29,831		39,864		—		35,975
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	148		155		43		139
Commercial - secured		475		496		92		538
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		956		1,002		250		1,363
Real estate – residential, farmland, and multi-family		14,133		14,526		1,575		14,194
Real estate – home equity lines of credit		—		—		—		—
Real estate – commercial		4,721		4,793		449		3,608
Consumer		—		—		—		—
Total non-covered impaired loans with allowance	$	20,433		20,972		2,409		19,842
Total covered impaired loans with allowance	$	2,975		3,268		509		3,874
Total impaired loans with an allowance recorded	$	23,408		24,240		2,918		23,716

Interest income recorded on non-covered and covered impaired loans during the nine months September 30, 2015 was insignificant.

Page 27 

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	33		35		—		20
Commercial - secured		5		6		—		95
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		6,877		7,944		—		6,430
Real estate – residential, farmland, and multi-family		9,165		10,225		—		7,776
Real estate – home equity lines of credit		476		498		—		388
Real estate – commercial		17,409		20,786		—		11,911
Consumer		7		10		—		7
Total non-covered impaired loans with no allowance	$	33,972		39,504		—		26,627
Total covered impaired loans with no allowance	$	8,097		12,081		—		16,986
Total impaired loans with no allowance recorded	$	42,069		51,585		—		43,613
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	140		143		47		142
Commercial - secured		606		612		164		550
Secured by inventory and accounts receivable		—		—		—		15
Real estate – construction, land development & other land loans		1,114		3,243		415		1,487
Real estate – residential, farmland, and multi-family		14,845		15,257		1,686		14,418
Real estate – home equity lines of credit		—		—		—		4
Real estate – commercial		3,501		3,530		165		6,420
Consumer		—		—		—		8
Total non-covered impaired loans with allowance	$	20,206		22,785		2,477		23,044
Total covered impaired loans with allowance	$	5,220		5,719		1,229		8,513
Total impaired loans with an allowance recorded	$	25,426		28,504		3,706		31,557

Interest income recorded on non-covered and covered impaired loans during the year ended December 31, 2014 was insignificant.

Page 28 

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 monthly 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:

	Numerical Risk Grade	Description
Pass:
	1	Loans with virtually no risk, including cash secured loans.
	2	Loans with documented significant overall financial strength, including non-cash secured or unsecured loans that have no minor or major exceptions to the lending guidelines.
	3	Loans with documented satisfactory overall financial strength, including non-cash secured or unsecured loans that have no major exceptions to the lending guidelines.  If unsecured, loans would include support of a strong guarantor or co-maker.
	4	Loans to borrowers with acceptable financial condition, including non-cash secured or unsecured loans that have minor or major exceptions to the lending guidelines, but the exceptions are properly mitigated.  Primary or secondary source of repayment is sufficient and if secured, loan would include the support of a satisfactory guarantor or co-maker.
Watch or Standard:
	9	Existing loans that meet the guidelines for a Risk Graded 5 loan, except the collateral coverage is sufficient to satisfy the debt with no risk of loss under reasonable circumstances.
Special Mention:
	5	Existing loans with major exceptions that cannot be mitigated.  Potential for loss is possible.
Classified:
	6	Loans that have a well-defined weakness that may jeopardize the liquidation of the debt if deficiencies are not corrected.  Loss is not only possible, but probable.
	7	Loans that have a well-defined weakness that make the collection or liquidation improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
	8	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.

Page 29 

The following table presents the Company’s recorded investment in loans by credit quality indicators as of September 30, 2015.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	28,490		19,737		—		1,161		671		470		50,529
Commercial - secured		54,927		55,401		32		3,224		2,250		2,253		118,087
Secured by inventory and accounts receivable		13,154		19,525		—		273		591		84		33,627
Real estate – construction, land development & other land loans		96,745		151,784		679		12,355		8,467		5,374		275,404
Real estate – residential, farmland, and multi-family		213,179		535,203		4,420		44,175		32,459		21,936		851,372
Real estate – home equity lines of credit		129,421		60,464		1,412		5,067		4,144		2,110		202,618
Real estate - commercial		281,428		461,060		8,102		26,880		11,959		9,762		799,191
Consumer		29,371		12,841		52		400		479		358		43,501
Total	$	846,715		1,316,015		14,697		93,535		61,020		42,347		2,374,329
Unamortized net deferred loan costs														765
Total non-covered  loans													$	2,375,094
Total covered loans	$	12,332		61,065		253		8,505		19,081		5,373		106,609
Total loans	$	859,047		1,377,080		14,950		102,040		80,101		47,720		2,481,703

At September 30, 2015, there was an insignificant amount of loans that were graded “8” with an accruing status.

Page 30 

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2014.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	17,856		15,649		5		1,356		2,231		187		37,284
Commercial - secured		32,812		62,361		62		4,481		4,331		2,927		106,974
Secured by inventory and accounts receivable		10,815		9,928		—		767		506		454		22,470
Real estate – construction, land development & other land loans		87,806		135,072		771		13,066		12,909		7,891		257,515
Real estate – residential, farmland, and multi-family		221,581		520,790		4,536		40,993		34,474		24,459		846,833
Real estate – home equity lines of credit		122,528		62,642		1,135		5,166		4,533		2,573		198,577
Real estate - commercial		223,197		465,395		9,057		30,318		15,748		11,070		754,785
Consumer		25,520		15,614		54		855		648		505		43,196
Total	$	742,115		1,287,451		15,620		97,002		75,380		50,066		2,267,634
Unamortized net deferred loan costs														946
Total non-covered  loans													$	2,268,580
Total covered loans	$	14,349		70,989		632		10,503		20,613		10,508		127,594
Total loans	$	756,464		1,358,440		16,252		107,505		95,993		60,574		2,396,174

At December 31, 2014, there was an insignificant amount of loans that were graded “8” with an accruing status.

Troubled Debt Restructurings

The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

The vast majority of the Company’s troubled debt restructurings modified during the periods ended September 30, 2015 and 2014 related to interest rate reductions combined with restructured amortization schedules. The Company does not generally grant principal forgiveness.

All loans classified as troubled debt restructurings are considered to be impaired and are evaluated as such for determination of the allowance for loan losses. The Company’s troubled debt restructurings can be classified as either nonaccrual or accruing based on the loan’s payment status. The troubled debt restructurings that are nonaccrual are reported within the nonaccrual loan totals presented previously.

Page 31 

The following table presents information related to loans modified in a troubled debt restructuring during the three months ended September 30, 2015 and 2014.

($ in thousands)	For the three months ended September 30, 2015						For the three months ended September 30, 2014
	Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—	$	—		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		1		21		21		1		36		36
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		1		390		390		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		1		95		95		3		275		275
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		6		1,236		1,236		5		326		326
Total covered TDRs arising during period– Accruing		—	$	—	$	—		1	$	680	$	667
Total covered TDRs arising during period – Nonaccrual		—		—		—		2		150		145
Total TDRs arising during period		6	$	1,236	$	1,236		8	$	1,156	$	1,138

Page 32 

The following table presents information related to loans modified in a troubled debt restructuring during the nine months ended September 30, 2015 and 2014.

($ in thousands)	For the nine months ended September 30, 2015						For the nine months ended September 30, 2014
	Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	8	$	8		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		3		286		286		8		784		784
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		2		441		441		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		5		400		400		7		713		713
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		14		1,865		1,865		16		1,512		1,512
Total covered TDRs arising during period– Accruing		2	$	139	$	139		3	$	928	$	912
Total covered TDRs arising during period – Nonaccrual		—		—		—		7		860		827
Total TDRs arising during period		16	$	2,004	$	2,004		26	$	3,300	$	3,251

Page 33 

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three months ended September 30, 2015 and 2014 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.

($ in thousands)	For the three months ended September 30, 2015				For the three months ended September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—		—	$	—
Real estate – construction, land development & other land loans		—		—		—		—
Real estate – residential, farmland, and multi-family		1		152		—		—
Real estate – commercial		—		—		—		—
Total non-covered TDRs that subsequently defaulted		1	$	152		—	$	—
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		1	$	152		—	$	—

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the nine months ended September 30, 2015 and 2014 are presented in the table below.

($ in thousands)	For the nine months ended September 30, 2015				For the nine months ended September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	7		—	$	—
Real estate – construction, land development & other land loans		—		—		1		5
Real estate – residential, farmland, and multi-family		2		186		—		—
Real estate – commercial		—		—		1		71
Total non-covered TDRs that subsequently defaulted		3	$	193		2	$	76
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		3	$	193		2	$	76

Page 34 

Note 8 – Deferred Loan Costs

The amount of loans shown on the Consolidated Balance Sheets includes net deferred loan costs of approximately $765,000, $946,000, and $730,000 at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

Note 9 – FDIC Indemnification Asset

The FDIC indemnification asset is the estimated amount that the Company will receive from the FDIC under loss share agreements associated with two FDIC-assisted failed bank acquisitions. See page 40 of the Company’s 2014 Annual Report on Form 10-K for a detailed explanation of this asset.

The FDIC indemnification asset was comprised of the following components as of the dates shown:

($ in thousands)	September 30, 2015			December 31, 2014		September 30, 2014
Receivable (payable) related to loss claims incurred (recoveries), not yet reimbursed, net	$	(2,427	)		6,899		5,957
Receivable related to estimated future claims on loans		9,522			14,933		17,932
Receivable related to estimated future claims on foreclosed real estate		554			737		1,439
FDIC indemnification asset	$	7,649			22,569		25,328

Included in the receivable related to loss claims incurred, not yet reimbursed, at December 31, 2014, was $1.2 million related to two claims involving the same borrower. The FDIC initially denied both claims because the FDIC disagreed with the collection strategy that the Company undertook. During the second quarter of 2015, the Company and the FDIC reached an agreement to resolve this matter, as follows. One of the two claims amounting to $324,000 was accepted by the FDIC and the related loan remains subject to the loss share agreement, which provides that any future recoveries realized prior to June 30, 2017 are to be split on an 80%/20% basis with the FDIC (the FDIC receives 80%). For the other claim amounting to $886,000, the FDIC paid the Company $480,000 and the related loan was removed from the provisions of the loss share agreement. This will result in the Company retaining 100% of any future recoveries. As a result of this negotiated agreement, during the second quarter of 2015, the Company wrote off the $406,000 portion of the claim not being reimbursed by the FDIC, which is reflected in the “Other gains (losses)” line item in the Consolidated Statements of Income.

The following presents a rollforward of the FDIC indemnification asset since December 31, 2014.

($ in thousands)
Balance at December 31, 2014	$	22,569
Decrease related to favorable changes in loss estimates		(2,526	)
Increase related to reimbursable expenses		1,031
Cash received		(8,758	)
Decrease related to accretion of loan discount		(4,558	)
Decrease related to settlement of disputed claims		(406	)
Other		297
Balance at September 30, 2015	$	7,649

Page 35 

Note 10 – Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of September 30, 2015, December 31, 2014, and September 30, 2014 and the carrying amount of unamortized intangible assets as of those same dates.

	September 30, 2015				December 31, 2014				September 30, 2014
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	678		539		678		505		678		495
Core deposit premiums		8,560		7,183		8,560		6,675		8,560		6,491
Total	$	9,238		7,722		9,238		7,180		9,238		6,986
Unamortizable intangible assets:
Goodwill	$	65,835				65,835				65,835

Amortization expense totaled $181,000 and $194,000 for the three months ended September 30, 2015 and 2014, respectively. Amortization expense totaled $541,000 and $582,000 for the nine months ended September 30, 2015 and 2014, respectively.

The following table presents the estimated amortization expense for the last quarter of calendar year 2015 and for each of the four calendar years ending December 31, 2019 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

($ in thousands)	Estimated Amortization Expense
October 1 to December 31, 2015	$	180
2016		654
2017		404
2018		129
2019		122
Thereafter		27
Total	$	1,516

Note 11 – Pension Plans

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

The Company recorded pension income totaling $300,000 and $264,000 for the three months ended September 30, 2015 and 2014, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

	For the Three Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			—			36			69			36			69
Interest cost		341			365			52			53			393			418
Expected return on plan assets		(713	)		(695	)		—			—			(713	)		(695	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(16	)		(56	)		(16	)		(56	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(372	)		(330	)		72			66			(300	)		(264	)

Page 36 

The Company recorded pension income totaling $855,000 and $791,000 for the nine months ended September 30, 2015 and 2014, respectively, which primarily related to investment income from the Pension Plan’s assets. The following table contains the components of the pension income.

	For the Nine Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost – benefits earned during the period	$	—			—			164			204			164			204
Interest cost		1,023			1,096			154			159			1,177			1,255
Expected return on plan assets		(2,133	)		(2,084	)		—			—			(2,133	)		(2,084	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(63	)		(166	)		(63	)		(166	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(1,110	)		(988	)		255			197			(855	)		(791	)

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company does not expect to contribute to the Pension Plan in 2015.

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 12 – Comprehensive Income

Comprehensive income is defined as the change in equity during a period for non-owner transactions and is divided into net income and other comprehensive income. Other comprehensive income includes revenues, expenses, gains, and losses that are excluded from earnings under current accounting standards. The components of accumulated other comprehensive income for the Company are as follows:

($ in thousands)	September 30, 2015			December 31, 2014			September 30, 2014
Unrealized gain (loss) on securities available for sale	$	(843	)		(691	)		(1,803	)
Deferred tax asset (liability)		329			270			704
Net unrealized gain (loss) on securities available for sale		(514	)		(421	)		(1,099	)
Additional pension asset (liability)		(320	)		(257	)		4,969
Deferred tax asset (liability)		124			100			(1,938	)
Net additional pension asset (liability)		(196	)		(157	)		3,031
Total accumulated other comprehensive income (loss)	$	(710	)		(578	)		1,932

The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2015	$	(421	)		(157	)		(578	)
Other comprehensive income (loss) before reclassifications		(94	)		—			(94	)
Amounts reclassified from accumulated other comprehensive income		1			(39	)		(38	)
Net current-period other comprehensive income (loss)		(93	)		(39	)		(132	)
Ending balance at September 30, 2015	$	(514	)		(196	)		(710	)

Page 37 

The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2014 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2014	$	(1,232	)		3,132			1,900
Other comprehensive income (loss) before reclassifications		613			—			613
Amounts reclassified from accumulated other comprehensive income		(480	)		(101	)		(581	)
Net current-period other comprehensive income (loss)		133			(101	)		32
Ending balance at September 30, 2014	$	(1,099	)		3,031			1,932

Note 13 – Fair Value

Relevant accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

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

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

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

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at September 30, 2015.

($ in thousands)
Description of Financial Instruments	Fair Value at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,850		—		27,850		—
Mortgage-backed securities		125,836		—		125,836		—
Corporate bonds		24,948		—		24,948		—
Equity securities		131		—		131		—
Total available for sale securities	$	178,765		—		178,765		—
Nonrecurring
Impaired loans – covered	$	2,466		—		—		2,466
Impaired loans – non-covered		18,415		—		—		18,415
Foreclosed real estate – covered		1,569		—		—		1,569
Foreclosed real estate – non-covered		9,304		—		—		9,304

Page 38 

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2014.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,521		—		27,521		—
Mortgage-backed securities		129,510		—		129,510		—
Corporate bonds		865		—		865		—
Equity securities		122		—		122		—
Total available for sale securities	$	158,018		—		158,018		—
Nonrecurring
Impaired loans – covered	$	3,991		—		—		3,991
Impaired loans – non-covered		18,035		—		—		18,035
Foreclosed real estate – covered		2,350		—		—		2,350
Foreclosed real estate – non-covered		9,771		—		—		9,771

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

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

The Company reviews the pricing methodologies utilized by the bond accounting provider to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Further, the Company validates the fair values for a sample of securities in the portfolio by comparing the fair values provided by the bond accounting provider to prices from other independent sources for the same or similar securities. The Company analyzes unusual or significant variances and conducts additional research with the portfolio manager, if necessary, and takes appropriate action based on its findings.

Impaired loans — Fair values for impaired loans in the above tables are measured on a non-recurring basis are based on the underlying collateral values securing the loans, adjusting for estimated selling costs, or the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3). The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower’s financial statements if not considered significant. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income.

Foreclosed real estate – Foreclosed real estate, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value. Fair value is measured on a non-recurring basis and is based upon independent market prices or current appraisals that are generally prepared using an income or market valuation approach and conducted by an independent, licensed third party appraiser, adjusted for estimated selling costs (Level 3). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income.

Page 39 

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2015, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at September 30, 2015		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	2,466	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,415	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		1,569	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,304	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2014		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	3,991	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,035	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		2,350	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,771	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

Transfers of assets or liabilities between levels within the fair value hierarchy are recognized when an event or change in circumstances occurs. There were no transfers between Level 1 and Level 2 for assets or liabilities measured on a recurring basis during the three or nine months ended September 30, 2015 or 2014.

For the nine months ended September 30, 2015, the decrease in the fair value of securities available for sale was $153,000, which is included in other comprehensive income (loss) (net of tax benefit of $60,000). For the nine months ended September 30, 2014, the increase in the fair value of securities available for sale was $218,000, which is included in other comprehensive income (net of tax expense of $85,000). Fair value measurement methods at September 30, 2015 and 2014 are consistent with those used in prior reporting periods.

Page 40 

The carrying amounts and estimated fair values of financial instruments at September 30, 2015 and December 31, 2014 are as follows:

		September 30, 2015				December 31, 2014
($ 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	$	52,788		52,788		81,068		81,068
Due from banks, interest-bearing	Level 1		165,271		165,271		171,248		171,248
Federal funds sold	Level 1		730		730		768		768
Securities available for sale	Level 2		178,765		178,765		158,018		158,018
Securities held to maturity	Level 2		160,048		162,858		178,687		182,411
Presold mortgages in process of settlement	Level 1		3,150		3,150		6,019		6,019
Total loans, net of allowance	Level 3		2,451,648		2,442,464		2,355,548		2,328,244
Accrued interest receivable	Level 1		9,008		9,008		8,920		8,920
FDIC indemnification asset	Level 3		7,649		7,541		22,569		21,856
Bank-owned life insurance	Level 1		56,557		56,557		55,421		55,421
Deposits	Level 2		2,707,753		2,707,338		2,695,906		2,696,153
Borrowings	Level 2		176,394		168,091		116,394		105,407
Accrued interest payable	Level 2		588		588		686		686

Fair value methods and assumptions are set forth below for the Company’s financial instruments.

Cash and Amounts Due from Banks, Federal Funds Sold, Presold Mortgages in Process of Settlement, Accrued Interest Receivable, and Accrued Interest Payable - The carrying amounts approximate their fair value because of the short maturity of these financial instruments.

Available for Sale and Held to Maturity Securities - Fair values are provided by a third-party and are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or matrix pricing.

Loans - For nonimpaired loans, fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, financial and agricultural, real estate construction, real estate mortgages and installment loans to individuals. Each loan category is further segmented into fixed and variable interest rate terms. The fair value for each category is determined by discounting scheduled future cash flows using current interest rates offered on loans with similar risk characteristics. Fair values for impaired loans are primarily based on estimated proceeds expected upon liquidation of the collateral or the present value of expected cash flows. Fair value for nonimpaired and impaired loans is presented net of the respective allowance for loan losses.

FDIC Indemnification Asset – Fair value is equal to the FDIC reimbursement rate of the expected losses to be incurred and reimbursed by the FDIC and then discounted over the estimated period of receipt.

Bank-Owned Life Insurance – The carrying value of life insurance approximates fair value because this investment is carried at cash surrender value, as determined by the issuer.

Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing checking accounts, savings accounts, interest-bearing checking accounts, and money market accounts, is equal to the amount payable on demand as of the valuation date. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered in the marketplace for deposits of similar remaining maturities.

Borrowings - The fair value of borrowings is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered by the Company’s lenders for debt of similar remaining maturities.

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

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Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

Note 14 – Shareholders’ Equity Transactions

Small Business Lending Fund

On September 1, 2011, the Company completed the sale of $63.5 million of Series B Preferred Stock to the Secretary of the Treasury under the Small Business Lending Fund (“SBLF Stock”). The fund was established under the Small Business Jobs Act of 2010 that was created to encourage lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion.

Under the terms of the stock purchase agreement, the Treasury received 63,500 shares of non-cumulative perpetual preferred stock with a liquidation value of $1,000 per share, in exchange for $63.5 million. On June 25, 2015, the Company redeemed $32 million (32,000 shares) of the outstanding SBLF Stock. The shares were redeemed at their liquidation value of $1,000 per share plus accrued dividends. As of September 30, 2015, the Company continued to have outstanding $31.5 million (31,500 shares) of SBLF Stock. See Note 15 for disclosure regarding a subsequent redemption of the remainder of the SBLF Stock.

The SBLF Stock qualified as Tier 1 capital. The dividend rate, as a percentage of the liquidation amount, fluctuated on a quarterly basis during the first 10 quarters during which the SBLF Stock was outstanding, based upon changes in the level of “Qualified Small Business Lending” or “QSBL”. For the first nine quarters after issuance, the dividend rate could range from one percent (1%) to five percent (5%) per annum based upon the increase in QSBL as compared to the baseline. For the tenth calendar quarter through four and one half years after issuance (the “temporary fixed rate period”), the dividend rate was fixed at between one percent (1%) and seven percent (7%) based upon the level of the issuer’s QSBL compared to the baseline. After four and one half years from the issuance, the dividend rate would increase to nine percent (9%). For quarters subsequent to the issuance in 2011, the Company was able to continually increase its level of small business lending and as a result, the dividend rate steadily decreased from 5.0% in 2011 to 1.0% in early 2013. From that point through redemption of the SBLF Stock, the Company was in the “temporary fixed rate period,” in which the dividend rate was fixed at 1%.

For the three months ended September 30, 2015 and 2014, the Company accrued approximately $79,000 and $159,000, respectively, in preferred dividend payments for the Series B Preferred Stock. For the nine months ended September 30, 2015 and 2014, the Company accrued approximately $391,000 and $476,000, respectively, in preferred dividend payments for the SBLF Stock. This amount is deducted from net income in computing “Net income available to common shareholders.”

Series C Preferred Stock

On December 21, 2012, the Company issued 2,656,294 shares of its common stock and 728,706 shares of the Company’s Series C Preferred Stock to certain accredited investors, each at the price of $10.00 per share, pursuant to a private placement transaction. Net proceeds from this sale of common and preferred stock were $33.8 million and were used to strengthen and remove risk from the Company’s balance sheet in anticipation of a planned disposition of certain classified loans and write-down of foreclosed real estate.

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The Series C Preferred Stock qualifies as Additional Tier 1 capital and is Convertible Perpetual Preferred Stock, with dividend rights equal to the Company’s Common Stock. Each share of Series C Preferred Stock will automatically convert into one share of Common Stock on the date the holder of Series C Preferred Stock transfers any shares of Series C Preferred Stock to a non-affiliate of the holder in certain permissible transfers. The Series C Preferred Stock is non-voting, except in limited circumstances.

The Series C Preferred Stock pays a dividend per share equal to that of the Company’s common stock. During each of the third quarters of 2015 and 2014, the Company accrued approximately $58,000 in preferred dividend payments for the Series C Preferred Stock. During each of the first nine months of 2015 and 2014, the Company accrued approximately $175,000 in preferred dividend payments for the Series C Preferred Stock.

Note 15 – Subsequent Event

On October 16, 2015, the Company redeemed the remaining $31.5 million (31,500 shares) of the outstanding SBLF Stock. The shares were redeemed at their liquidation value of $1,000 per share plus accrued dividends. With this redemption, the Company has redeemed all of its SBLF Stock.

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

Critical Accounting Policies

The accounting principles we follow and our methods of applying these principles conform with accounting principles generally accepted in the United States of America 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. The allowance for loan losses, intangible assets, and the fair value and discount accretion of loans acquired in FDIC-assisted transactions are three policies we have identified as being more sensitive in terms of judgments and estimates, taking into account their overall potential impact to our consolidated financial statements.

Allowance for Loan Losses

Due to the estimation process and the potential materiality of the amounts involved, we have identified the accounting for the allowance for loan losses and the related provision for loan losses as an accounting policy critical to our consolidated financial statements. The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance considered adequate to absorb losses inherent in the portfolio.

Our determination of the adequacy of the allowance is based primarily on a mathematical model that estimates the appropriate allowance for loan losses. This model has two components. The first component involves the estimation of losses on individually evaluated “impaired loans”. A loan is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is specifically evaluated for an appropriate valuation allowance if the loan balance is above a prescribed evaluation threshold (which varies based on credit quality, accruing status, troubled debt restructured status, and type of collateral) and the loan is determined to be impaired. Factors considered by management in determining impairment include payment status, borrowers’ financial data, cash flow, and various other factors. The estimated valuation allowance is the difference, if any, between the loan balance outstanding and the value of the impaired loan as determined by either 1) an estimate of the cash flows that we expect to receive from the borrower discounted at the loan’s effective rate, or 2) in the case of a collateral-dependent loan, the fair value of the collateral, less selling costs.

The second component of the allowance model is an estimate of losses for all loans not considered to be impaired loans (“general reserve loans”). General reserve loans are segregated into pools by loan type and risk grade, and estimated loss percentages are assigned to each loan pool, based on historical losses adjusted for any environmental factors used to reflect changes in the collectability of the portfolio not captured by the historical loss data. Loss percentages are based on a migration analysis in which loss rates are calculated based on an analysis of losses incurred on similar loan types and risk grades over the preceding three years.

The reserves estimated for individually evaluated impaired loans are then added to the reserve estimated for general reserve loans. This becomes our “allocated allowance.” The allocated allowance is compared to the actual allowance for loan losses recorded on our books and any adjustment necessary for the recorded allowance to absorb losses inherent in the portfolio is recorded as a provision for loan losses. The provision for loan losses is a direct charge to earnings in the period recorded. Any remaining difference between the allocated allowance and the actual allowance for loan losses recorded on our books is our “unallocated allowance.”

Loans covered under loss share agreements (referred to as “covered loans”) are recorded at fair value at acquisition date. Therefore, amounts deemed uncollectible at acquisition date become a part of the fair value calculation and are excluded from the allowance for loan losses. Subsequent decreases in the amount expected to be collected result in a provision for loan losses with a corresponding increase in the allowance for loan losses. Subsequent increases in the amount expected to be collected are accreted into income over the life of the loan. Proportional adjustments are also recorded to the FDIC indemnification asset.

Although we use the best information available to make evaluations, future material adjustments may be necessary if economic, operational, or other conditions change. In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize additions to the allowance based on the examiners’ judgment about information available to them at the time of their examinations.

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For further discussion, see “Nonperforming Assets” and “Summary of Loan Loss Experience” below.

Intangible Assets

Due to the estimation process and the potential materiality of the amounts involved, we have also identified the accounting for intangible assets as an accounting policy critical to our consolidated financial statements.

When we complete an acquisition transaction, the excess of the purchase price over the amount by which the fair market value of assets acquired exceeds the fair market value of liabilities assumed represents an intangible asset. We must then determine the identifiable portions of the intangible asset, with any remaining amount classified as goodwill. Identifiable intangible assets associated with these acquisitions are generally amortized over the estimated life of the related asset, whereas goodwill is tested annually for impairment, but not systematically amortized. Assuming no goodwill impairment, it is beneficial to our future earnings to have a lower amount assigned to identifiable intangible assets and higher amount of goodwill as opposed to having a higher amount considered to be identifiable intangible assets and a lower amount classified as goodwill.

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 intangible, whereas when we acquire an insurance agency, the primary identifiable intangible asset is the value of the acquired customer list. 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. We typically engage a third party consultant to assist in each analysis. For the whole bank and bank branch transactions recorded to date, the core deposit intangibles have generally been estimated to have a life ranging from seven to ten years, with an accelerated rate of amortization. For insurance agency acquisitions, the identifiable intangible assets related to the customer lists were determined to have a life of ten to fifteen years, with amortization occurring on a straight-line basis.

Subsequent to the initial recording of the identifiable intangible assets and goodwill, we amortize the identifiable intangible assets over their estimated average lives, as discussed above. In addition, on at least an annual basis, goodwill is evaluated for impairment by comparing the fair value of our reporting units to their related carrying value, including goodwill (our community banking operation is our only material reporting unit). If the carrying value of a reporting unit were ever to exceed its fair value, we would determine whether the implied fair value of the goodwill, using a discounted cash flow analysis, exceeded the carrying value of the goodwill. If the carrying value of the goodwill exceeded the implied fair value of the goodwill, an impairment loss would be recorded in an amount equal to that excess. Performing such a discounted cash flow analysis would involve the significant use of estimates and assumptions.

In our 2014 goodwill impairment evaluation, we engaged a consulting firm that used various valuation techniques to assist us in concluding that our goodwill was not impaired. A similar analysis will be performed in the fourth quarter of 2015.

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.

Fair Value and Discount Accretion of Loans Acquired in FDIC-Assisted Transactions

We consider the determination of the initial fair value of loans acquired in FDIC-assisted transactions, the initial fair value of the related FDIC indemnification asset, and the subsequent discount accretion of the purchased loans to involve a high degree of judgment and complexity. We determine fair value accounting estimates of newly assumed assets and liabilities in accordance with relevant accounting guidance. However, the amount that we realize on these assets could differ materially from the carrying value reflected in our financial statements, based upon the timing of collections on the acquired loans in future periods. To the extent the actual values realized for the acquired loans are different from the estimates, the FDIC indemnification asset will generally be impacted in an offsetting manner due to the loss-sharing support from the FDIC.

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Because of the inherent credit losses associated with the acquired loans in a failed bank acquisition, the amount that 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. We have applied the cost recovery method of accounting to all purchased impaired loans due to the uncertainty as to the timing of expected cash flows. This will generally result in the recognition of interest income on these impaired loans only when the cash payments received from the borrower exceed the recorded net book value of the related loans.

For nonimpaired purchased loans, we accrete the discount over the lives of the loans in a manner consistent with the guidance for accounting for loan origination fees and costs.

FDIC Indemnification Asset

The FDIC indemnification asset is the estimated amount that the Company will receive from the FDIC under loss share agreements associated with two FDIC-assisted failed bank acquisitions. See page 40 of the Company’s 2014 Annual Report on Form 10-K for a detailed explanation of this asset.

The following table presents additional information regarding our covered loans, loan discounts, allowances for loan losses and the corresponding FDIC indemnification asset:

($ in thousands)
At September 30, 2015	Cooperative Single Family Loss Share Loans		Bank of Asheville Single Family Loss Share Loans		Bank of Asheville Non-Single Family Loss Share Loans		Total
Expiration of loss share agreement		6/30/2019		3/31/2021		3/31/2016
Nonaccrual covered loans
Unpaid principal balance	$	3,425		802		5,846		10,073
Carrying value prior to loan discount*		3,236		642		3,538		7,416
Loan discount		397		402		1,244		2,043
Net carrying value		2,839		240		2,294		5,373
Allowance for loan losses		101		6		28		135
Indemnification asset recorded		308		247		253		808
All other covered loans
Unpaid principal balance		91,016		7,062		17,532		115,610
Carrying value prior to loan discount*		90,885		6,983		17,519		115,387
Loan discount		12,224		1,266		661		14,151
Net carrying value		78,661		5,717		16,858		101,236
Allowance for loan losses		1,327		55		383		1,765
Indemnification asset recorded		7,596		933		194		8,723
All covered loans
Unpaid principal balance		94,441		7,864		23,378		125,683
Carrying value prior to loan discount*		94,121		7,625		21,057		122,803
Loan discount		12,621		1,668		1,905		16,194
Net carrying value		81,500		5,957		19,152		106,609
Allowance for loan losses		1,428		61		411		1,900
Indemnification asset recorded		7,904		1,180		447		9,531	**
Foreclosed Properties
Net carrying value		913		—		656		1,569
Indemnification asset recorded		399		—		155		554
For the Nine Months Ended September 30, 2015
Loan discount accretion recognized		1,520		638		1,739		3,897
Indemnification asset expense associated with the loan discount accretion recognized		2,198		540		1,820		4,558

* Reflects partial charge-offs
** A present value adjustment of $9 reduces the carrying value of this asset to $9,522

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Current Accounting Matters

See Note 2 to the Consolidated Financial Statements above for information about accounting standards that we have recently adopted.

RESULTS OF OPERATIONS

Net income available to common shareholders for the third quarter of 2015 amounted to $6.9 million, or $0.34 per diluted common share, compared to the $5.4 million, or $0.27 per diluted common share, recorded in the third quarter of 2014. The higher earnings were primarily the result of a lower provision for loan losses.

For the nine months ended September 30, 2015, net income available to common shareholders amounted to $19.7 million, or $0.97 per diluted common share, compared to the $17.3 million, or $0.85 per diluted common share, for the nine months ended September 30, 2014. The higher earnings were primarily the result of a lower provision for loan losses.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2015 amounted to $30.4 million, a 3.1% decrease from the $31.3 million recorded in the third quarter of 2014. Net interest income for the first nine months of 2015 amounted to $89.7 million, a 10.9% decrease from the $100.7 million recorded in the comparable period of 2014.

Our net interest margin (tax-equivalent net interest income divided by average earning assets) in the third quarter of 2015 was 4.14% compared to 4.30% for the third quarter of 2014. For the nine month period ended September 30, 2015, the Company’s net interest margin was 4.16% compared to 4.69% for the same period in 2014. The lower margins in 2015 compared to 2014 were primarily due to lower amounts of discount accretion on loans purchased in failed-bank acquisitions – see additional discussion below. Loan discount accretion amounted to $1.2 million in the third quarter of 2015 and $2.6 million in the third quarter of 2014. For the first nine months of 2015, loan discount accretion amounted to $3.9 million compared to $13.8 million for the first nine months of 2014. The lower amount of accretion is due to the continued winding down of the unaccreted discount amount that resulted from failed-bank acquisitions in 2009 and 2011.

We continue to experience lower loan yields due to the prolonged low interest rate environment, but began to invest our excess cash balances into higher yielding investment securities late in the fourth quarter of 2014, which has partially offset the lower loan yields. Investment securities totaled $339 million at September 30, 2015 compared to $207 million at September 30, 2014.

Our cost of funds has steadily declined from 0.28% in the third quarter of 2014 to 0.24% in the third quarter of 2015, which has had a positive impact on our net interest margin.

Provision for Loan Losses and Asset Quality

We recorded negative total provisions for loan losses (reduction of the allowance for loan losses) of $1.4 million in the third quarter of 2015 compared to provisions for loan losses of $1.5 million in the third quarter of 2014. For the nine months ended September 30, 2015, we recorded negative total provisions for loan losses of $0.7 million compared to provision for loan losses of $8.7 million for the same period of 2014. As discussed below, the provisions for loan losses related to both non-covered and covered loan portfolios – see explanation of the terms “non-covered” and “covered” in the section below entitled “Note Regarding Components of Earnings.”

The provision for loan losses on non-covered loans amounted to $0.3 million in the third quarter of 2015 compared to $1.3 million in the third quarter of 2014. For the first nine months of 2015, the provision for loan losses on non-covered loans amounted to $1.4 million compared to $5.8 million for the same period of 2014. The lower provisions recorded in 2015 were primarily a result of continued favorable credit quality trends and generally improving economic trends.

We recorded a negative provision for loan losses on covered loans (reduction of allowance for loan losses) of $1.7 million in the third quarter of 2015 compared to a $0.2 million provision for loan losses in the third quarter of 2014. For the nine months ended September 30, 2015, we recorded a negative provision for loan losses on covered loans of $2.1 million compared to a $2.9 million provision for loan losses in the comparable period of 2014. The negative provisions in 2015 primarily resulted from lower levels of covered nonperforming loans, declining levels of total covered loans, and net loan recoveries (recoveries, net of charge-offs) of $1.6 million and $1.7 million that were realized during the three and nine months ended September 30, 2015, respectively.

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Total non-covered nonperforming assets have declined in the past year, amounting to $80.9 million at September 30, 2015 (2.56% of total non-covered assets), $95.3 million at December 31, 2014 (3.09% of total non-covered assets), and $96.8 million at September 30, 2014 (3.17% of total non-covered assets). The decline in non-covered nonperforming assets is primarily due to on-going resolution of nonperforming assets and improving credit quality.

Total covered nonperforming assets have also declined in the past year, amounting to $10.8 million at September 30, 2015, $18.7 million at December 31, 2014 and $20.0 million at September 30, 2014. Over the past twelve months, the Company has resolved a significant amount of covered loans and has experienced strong property sales along the North Carolina coast, which is where most of our covered assets are located.

Noninterest Income

Total noninterest income was $3.5 million and $4.6 million for the three months ended September 30, 2015 and September 30, 2014, respectively. For the nine months ended September 30, 2015, noninterest income amounted to $13.0 million compared to $9.9 million for the nine months ended September 30, 2014.

Core noninterest income for the third quarter of 2015 was $7.3 million, a decrease of 6.2% from the $7.8 million reported for the third quarter of 2014. For the first nine months of 2015, core noninterest income amounted to $21.9 million, a 5.1% decrease from the $23.1 million recorded in the comparable period of 2014. Core noninterest income includes i) service charges on deposit accounts, ii) other service charges, commissions, and fees, iii) fees from presold mortgages, iv) commissions from financial product sales, and v) bank-owned life insurance income. The primary reason for the decrease in core noninterest income in 2015 was lower service charges on deposit accounts, which is discussed further in the section entitled “Components of Earnings.”

Noncore components of noninterest income resulted in a net decrease to income of $3.8 million in the third quarter of 2015 compared to a net decrease to income of $3.2 million in the third quarter of 2014. For the nine months ended September 30, 2015 and 2014, the Company recorded net decreases to income of $8.8 million and $13.2 million, respectively, related to the noncore components of noninterest income. The largest variances in noncore noninterest income related to gains (losses) on covered foreclosed properties and indemnification asset income (expense) – see discussion in the section entitled “Components of Earnings.”

Noninterest Expenses

Noninterest expenses amounted to $24.6 million in the third quarter of 2015 compared to $25.9 million recorded in the third quarter of 2014. Noninterest expenses for the nine months ended September 30, 2015 amounted to $72.6 million compared to $74.3 million recorded in the first nine months of 2014. The decreases in 2015 were mainly due to decreases in miscellaneous items of other operating expense. Also, included in noninterest expenses for the three and nine months ended September 30, 2014 were $0.9 million in charges related to the closure and consolidation of nine bank branches. Salaries expense has risen slightly in 2015 as a result of the hiring of additional staff to drive growth, as well as higher incentive compensation expense related to the Company’s performance.

Balance Sheet and Capital

Total assets at September 30, 2015 amounted to $3.3 billion, a 2.4% increase from a year earlier. Total loans at September 30, 2015 amounted to $2.5 billion, a 2.3% increase from a year earlier, and total deposits amounted to $2.7 billion at September 30, 2015, a 1.1% increase from a year earlier.

Investment securities totaled $338.8 million at September 30, 2015 compared to $207.1 million at September 30, 2014. Over the past 12 months, we have used a portion of our excess cash balances to purchase investment securities.

Non-covered loans amounted to $2.4 billion at September 30, 2015, an increase of $82.3 million from September 30, 2014. Non-covered loans increased $76.1 million, or 13.1% on an annualized basis, during the third quarter of 2015 as a result of ongoing internal initiatives to drive loan growth. Loans covered by FDIC loss share agreements amounted to $106.6 million at September 30, 2015 compared to $133.2 million at September 30, 2014 and are expected to continue to decline as those loans continue to pay down.

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The increase in total deposits at September 30, 2015 compared to September 30, 2014 was primarily due increases in checking, money market and savings accounts, which were partially offset by decreases in retail time deposits (“other time deposits > $100,000” and “other time deposits” in the accompanying tables) and brokered deposits. Time deposits are generally one of our most expensive funding sources, and thus the shift from this category has benefited our overall cost of funds.

On June 25, 2015, the Company redeemed $32 million (32,000 shares) of the outstanding Non-Cumulative Perpetual Preferred Stock, Series B (“SBLF Stock”) that had been issued to the United States Secretary of the Treasury in September 2011 related to the Company’s participation in the Small Business Lending Fund. On October 16, 2015, the remaining $31.5 million of SBLF Stock was redeemed, which ended the Company’s participation in the Small Business Lending Fund.

We remain well-capitalized by all regulatory standards, with a Total Risk-Based Capital Ratio at September 30, 2015 of 15.99% compared to the 10.00% minimum to be considered well-capitalized. Our tangible common equity to tangible assets ratio was 8.27% at September 30, 2015, an increase of 41 basis points from a year earlier.

Note Regarding Components of Earnings

Our results of operation are significantly affected by the on-going accounting for two FDIC-assisted failed bank acquisitions. In the discussion above and elsewhere in this document, the term “covered” is used to describe assets included as part of FDIC loss share agreements, which generally result in the FDIC reimbursing the Company for 80% of losses incurred on those assets. The term “non-covered” refers to the Company’s legacy assets, which are not included in any type of loss share arrangement.

For covered loans that deteriorate in terms of repayment expectations, we record immediate allowances through the provision for loan losses. For covered loans that experience favorable changes in credit quality compared to what was expected at the acquisition date, including loans that payoff, we record positive adjustments to interest income over the life of the respective loan – also referred to as loan discount accretion. For covered foreclosed properties that are sold at gains or losses or that are written down to lower values, we record the gains/losses within noninterest income.

The adjustments discussed above are recorded within the income statement line items noted without consideration of the FDIC loss share agreements. Because favorable changes in covered assets result in lower expected FDIC claims, and unfavorable changes in covered assets result in higher expected FDIC claims, the FDIC indemnification asset is adjusted to reflect those expectations. The net increase or decrease in the indemnification asset is reflected within noninterest income.

The adjustments noted above can result in volatility within individual income statement line items. Because of the FDIC loss share agreements and the associated indemnification asset, pretax income resulting from amounts recorded as provisions for loan losses on covered loans, discount accretion, and losses from covered foreclosed properties is generally only impacted by 20% of these amounts due to the corresponding adjustments made to the indemnification asset.

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Components of Earnings

Net interest income is the largest component of earnings, representing the difference between interest and fees generated from earning assets and the interest costs of deposits and other funds needed to support those assets. Net interest income for the three month period ended September 30, 2015 amounted to $30.4 million, a decrease of $1.0 million, or 3.1%, from the $31.3 million recorded in the third quarter of 2014. Net interest income on a tax-equivalent basis for the three month period ended September 30, 2015 amounted to $30.8 million, a decrease of $0.9 million, or 2.9%, from the $31.7 million recorded in the third quarter of 2014. We believe that analysis of net interest income on a tax-equivalent basis is useful and appropriate because it allows a comparison of net interest income amounts in different periods without taking into account the different mix of taxable versus non-taxable investments that may have existed during those periods.

	Three Months Ended September 30,
($ in thousands)	2015		2014
Net interest income, as reported	$	30,386		31,343
Tax-equivalent adjustment		419		378
Net interest income, tax-equivalent	$	30,805		31,721

Net interest income for the nine month period ended September 30, 2015 amounted to $89.7 million, a decrease of $11.0 million, or 10.9%, from the $100.7 million recorded in the first nine months of 2014. Net interest income on a tax-equivalent basis for the nine month period ended September 30, 2015 amounted to $90.9 million, a decrease of $10.9 million, or 10.7%, from the $101.8 million recorded in the comparable period of 2014.

	Nine Months Ended September 30,
($ in thousands)	2015		2014
Net interest income, as reported	$	89,694		100,686
Tax-equivalent adjustment		1,211		1,126
Net interest income, tax-equivalent	$	90,905		101,812

There are two primary factors that cause changes in the amount of net interest income we record - 1) changes in our loans and deposits balances, and 2) our net interest margin (tax-equivalent net interest income divided by average interest-earning assets).

For the three and nine months ended September 30, 2015, the lower net interest income compared to the same periods of 2014 was primarily due to a lower net interest margin (see discussion below).

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The following tables present net interest income analysis on a tax-equivalent basis for the periods indicated.

	For the Three Months Ended September 30,
	2015						2014
($ in thousands)	Average Volume		Average Rate		Interest Earned or Paid		Average Volume		Average Rate		Interest Earned or Paid
Assets
Loans (1)	$	2,453,580		4.83%	$	29,863	$	2,428,475		5.23%	$	32,019
Taxable securities		314,816		2.10%		1,670		128,415		2.00%		646
Non-taxable securities (2)		52,299		6.63%		874		53,859		6.25%		848
Short-term investments, principally federal funds		130,943		0.43%		142		313,956		0.30%		239
Total interest-earning assets		2,951,638		4.38%		32,549		2,924,705		4.58%		33,752
Cash and due from banks		60,261						84,643
Premises and equipment		75,127						76,305
Other assets		157,489						141,307
Total assets	$	3,244,515					$	3,226,960
Liabilities
Interest bearing checking	$	568,901		0.06%	$	81	$	532,813		0.06%	$	81
Money market deposits		578,751		0.13%		187		553,033		0.11%		160
Savings deposits		186,745		0.05%		24		177,087		0.05%		22
Time deposits >$100,000		395,597		0.66%		657		533,345		0.79%		1,058
Other time deposits		316,005		0.39%		308		379,605		0.43%		408
Total interest-bearing deposits		2,045,999		0.24%		1,257		2,175,883		0.32%		1,729
Borrowings		177,026		1.09%		487		116,773		1.03%		302
Total interest-bearing liabilities		2,223,025		0.31%		1,744		2,292,656		0.35%		2,031
Noninterest bearing checking		634,672						537,413
Other liabilities		17,319						11,340
Shareholders’ equity		369,499						385,551
Total liabilities and shareholders’ equity	$	3,244,515					$	3,226,960
Net yield on interest-earning assets and net interest income				4.14%	$	30,805				4.30%	$	31,721
Interest rate spread				4.07%						4.23%
Average prime rate				3.25%						3.25%

(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes tax-equivalent adjustments of $419,000 and $378,000 in 2015 and 2014, respectively, to reflect the tax benefit that we receive related to tax-exempt securities, which carry interest rates lower than similar taxable investments due to their tax exempt status. This amount has been computed assuming a 39% tax rate and is reduced by the related nondeductible portion of interest expense.

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	For the Nine Months Ended September 30,
	2015						2014
($ in thousands)	Average Volume		Average Rate		Interest Earned or Paid		Average Volume		Average Rate		Interest Earned or Paid
Assets
Loans (1)	$	2,411,462		4.89%	$	88,257	$	2,442,069		5.61%	$	102,481
Taxable securities		302,640		2.07%		4,693		161,675		2.09%		2,523
Non-taxable securities (2)		52,525		6.58%		2,586		53,917		6.29%		2,537
Short-term investments, principally federal funds		154,753		0.45%		523		245,038		0.32%		590
Total interest-earning assets		2,921,380		4.40%		96,059		2,902,699		4.98%		108,131
Cash and due from banks		63,563						83,071
Premises and equipment		75,531						76,901
Other assets		152,311						159,115
Total assets	$	3,212,785					$	3,221,786
Liabilities
Interest bearing checking	$	563,279		0.06%	$	245	$	532,409		0.06%	$	241
Money market deposits		569,589		0.12%		528		554,363		0.11%		467
Savings deposits		183,909		0.05%		69		175,273		0.05%		66
Time deposits >$100,000		420,939		0.71%		2,236		561,003		0.81%		3,413
Other time deposits		328,823		0.40%		977		397,159		0.43%		1,283
Total interest-bearing deposits		2,066,539		0.26%		4,055		2,220,207		0.33%		5,470
Borrowings		138,152		1.06%		1,099		93,647		1.21%		849
Total interest-bearing liabilities		2,204,691		0.31%		5,154		2,313,854		0.37%		6,319
Noninterest bearing checking		605,892						514,445
Other liabilities		16,745						12,650
Shareholders’ equity		385,457						380,837
Total liabilities and shareholders’ equity	$	3,212,785					$	3,221,786
Net yield on interest-earning assets and net interest income				4.16%	$	90,905				4.69%	$	101,812
Interest rate spread				4.09%						4.62%
Average prime rate				3.25%						3.25%

(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes tax-equivalent adjustments of $1,211,000 and $1,126,000 in 2015 and 2014, respectively, to reflect the tax benefit that we receive related to tax-exempt securities, which carry interest rates lower than similar taxable investments due to their tax exempt status. This amount has been computed assuming a 39% tax rate and is reduced by the related nondeductible portion of interest expense.

Average loans outstanding for the third quarter of 2015 were $2.454 billion, which was 1.0% higher than the average loans outstanding for the third quarter of 2014 ($2.428 billion). Average loans for the nine months ended September 30, 2015 were $2.411 billion, which was 1.3% less than the average loans outstanding for the nine months ended September 30, 2014 ($2.442 billion). The relatively unchanged average loan balances in 2015 were primarily a result of declines in our covered loan portfolio offsetting organic loan growth in our non-covered loan portfolio. The average loan balance for the third quarter of 2015 was positively impacted by the $76 million in growth in our non-covered loans experienced during the quarter.

The mix of our loan portfolio remained substantially the same at September 30, 2015 compared to December 31, 2014, with approximately 91% of our loans being real estate loans, 7% being commercial, financial, and agricultural loans, and the remaining 2% being consumer installment loans. The majority of our real estate loans are personal and commercial loans where real estate provides additional security for the loan.

Average total deposits outstanding for the third quarter of 2015 were $2.681 billion, which was 1.2% less than the average deposits outstanding for the third quarter of 2014 ($2.713 billion). Average deposits outstanding for the nine months ended September 30, 2015 were $2.672 billion, which was 2.3% less than the average deposits outstanding for the nine months ended September 30, 2014 ($2.735 billion).

Average transaction deposit accounts (noninterest bearing checking, interest bearing checking, money market and savings accounts) increased from $1.776 billion for the first nine months of 2014 to $1.923 billion for the first nine months of 2015, representing growth of $147 million, or 8.2%. With the growth of our transaction deposit accounts, we were able to further reduce our reliance on higher cost sources of funding, especially time deposits. Average time deposits declined from $958 million for the first nine months of 2014 to $750 million for the first nine months of 2015, a decrease of $208 million, or 21.8%. This favorable change in funding mix was largely responsible for our average cost of interest bearing liabilities decreasing from 0.37% in the first nine months of 2014 to 0.31% in the first nine months of 2015. Our total cost of funds, which includes noninterest bearing checking accounts at a zero percent cost, was 0.25% for the first nine months of 2015 compared to 0.30% in the first nine months of 2014.

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See additional information regarding changes in the Company’s loans and deposits in the section below entitled “Financial Condition.”

Our net interest margin (tax-equivalent net interest income divided by average earning assets) for the third quarter of 2015 was 4.14% compared to 4.30% for the third quarter of 2014. For the nine month period ended September 30, 2015, our net interest margin was 4.16% compared to 4.69% for the same period in 2014. The lower margins were primarily a result of a lower amount of discount accretion on loans purchased in failed-bank acquisitions (see discussion below).

We continue to experience lower loan yields in 2015 due to the prolonged low interest rate environment, but began to invest our excess cash balances into higher yielding investment securities late in the fourth quarter of 2014, which has partially offset the lower loan yields.

Our net interest margin benefitted from the net accretion of purchase accounting premiums/discounts associated with the Cooperative acquisition that occurred in June 2009 and the acquisition of The Bank of Asheville in January 2011. For the three months ended September 30, 2015 and 2014, we recorded $1,205,000 and $2,577,000, respectively, in net accretion of purchase accounting premiums/discounts that increased net interest income. For the nine months ended September 30, 2015 and 2014, we recorded $3,897,000 and $13,745,000, respectively, in net accretion of purchase accounting premiums/discounts. The following table presents the detail of the purchase accounting adjustments that impacted net interest income.

	For the Three Months Ended				For the Nine Months Ended
$ in thousands	Sept. 30, 2015		Sept. 30, 2014		Sept. 30, 2015		Sept. 30, 2014
Interest income – reduced by premium amortization on loans	$	—		—		—		(98	)
Interest income – increased by accretion of loan discount		1,205		2,577		3,897		13,836
Interest expense – reduced by premium amortization of deposits		—		—		—		7
Impact on net interest income	$	1,205		2,577		3,897		13,745

See additional information regarding net interest income in the section entitled “Interest Rate Risk.”

The decrease in discount accretion in 2015 is due to the unnaccreted discount amount that resulted from aforementioned acquisitions continuing to wind down. Unaccreted loan discount has declined from $39.6 million at December 31, 2013 to $16.2 million at September 30, 2015.

We recorded total negative provisions for loan losses (reduction of allowance for loan losses) of $1.4 million in the third quarter of 2015 compared to total provisions for loan losses of $1.5 million in the third quarter of 2014. For the nine months ended September 30, 2015, we recorded total negative provisions for loan losses of $0.7 million compared to total provisions for loan losses of $8.7 million for the same period of 2014. As discussed below, we record provisions for loan losses related to both non-covered and covered loan portfolios – see explanation of the terms “non-covered” and “covered” in the section below entitled “Note Regarding Components of Earnings.”

Our provision for loan losses on non-covered loans amounted to $0.3 million in the third quarter of 2015 compared to $1.3 million in the third quarter of 2014. For the first nine months of 2015, the provision for loan losses on non-covered loans amounted to $1.4 million compared to $5.8 million for the same period of 2014. The lower provisions recorded in 2015 were primarily a result of continued favorable credit quality trends and generally improving economic trends.

We recorded a negative provision for loan losses on covered loans (reduction of allowance for loan losses) of $1.7 million in the third quarter of 2015 compared to a $0.2 million provision for loan losses in the third quarter of 2014. For the nine months ended September 30, 2015, we recorded a negative provision for loan losses on covered loans of $2.1 million compared to a $2.9 million provision for loan losses in the comparable period of 2014. The negative provisions in 2015 primarily resulted from lower levels of covered nonperforming loans, net loan recoveries (recoveries, net of charge-offs), and declining levels of total covered loans.

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Total noninterest income was $3.5 million and $4.6 million for the three month periods ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015, noninterest income amounted to $13.0 million compared to $9.9 million for the nine months ended September 30, 2014.

As presented in the table below, core noninterest income for the third quarter of 2015 was $7.3 million, a decrease of 6.2% from the $7.8 million reported for the third quarter of 2014. For the first nine months of 2015, core noninterest income amounted to $21.9 million, a 5.1% decrease from the $23.1 million recorded in the comparable period of 2014. As noted above, core noninterest income includes i) service charges on deposit accounts, ii) other service charges, commissions, and fees, iii) fees from presold mortgages, iv) commissions from financial product sales, and v) bank-owned life insurance income.

The following table presents our core noninterest income for the three and nine month periods ending September 30, 2015 and 2014 respectively.

	For the Three Months Ended				For the Nine Months Ended
$ in thousands	Sept. 30, 2015		Sept. 30, 2014		Sept. 30, 2015		Sept. 30, 2014
Service charges on deposit accounts	$	2,951		3,426		8,724		10,445
Other service charges, commissions, and fees		2,778		2,538		8,091		7,467
Fees from presold mortgages		481		807		2,020		2,204
Commissions from sales of insurance and financial products		691		685		1,917		1,985
Bank-owned life insurance income		382		311		1,136		956
Core noninterest income	$	7,283		7,767		21,888		23,057

As shown in the table above, service charges on deposit accounts declined from $3.4 million in the third quarter of 2014 to $3.0 million in the third quarter of 2015. For the nine months ended September 30, 2015, service charges on deposit accounts amounted to $8.7 million, which is a $1.7 million decrease from the $10.4 million recorded in the comparable period of 2014. After the elimination of free checking for most customers with low balances in late 2013 which resulted in a strong increase in service charges in the first quarter of 2014, monthly fees earned on deposit accounts gradually declined thereafter as a result of more customers meeting the requirements to have the monthly service charge waived. Fewer instances of fees earned from customers overdrawing their accounts have also significantly impacted this line item.

Other service charges, commissions, and fees increased in 2015 compared to 2014, primarily as a result of higher debit card interchange fees. We earn a small fee each time a customer uses a debit card to make a purchase. Due to the growth in checking accounts and increased customer usage of debit cards, we have experienced increases in this line item. Interchange income from credits cards has also increased due to growth in the number and usage of credit cards, which we believe is a result of increased promotion of this product.

Fees from presold mortgages have declined in 2015 compared to 2014. These fees amounted to $0.5 million the third quarter of 2015 compared to the $0.8 million recorded in the third quarter of 2014. For the nine months ended September 30, 2015 and 2014, fees from presold mortgages amounted to $2.0 million and $2.2 million, respectively. The decline in the third quarter of 2015 was primarily due to our decision to hold for investment approximately $15 million more loans in 2015 compared to 2014 that met secondary mortgage market specifications in order to realize interest income.

Commissions from sales of insurance and financial products were consistent among the periods presented. These commissions amounted to approximately $0.7 million for each of the three months ended September 30, 2015 and 2014. For the nine months ended September 30, 2015, commissions from sales of insurance and financial products amounted to $1.9 million compared to $2.0 million in the comparable period of 2014.

Bank-owned life insurance income amounted to $0.4 million in the third quarter of 2015 compared to $0.3 million in the third quarter of 2014. For the nine months ended September 30, 2015, bank-owned life insurance income amounted to $1.1 million compared to $1.0 million for the nine months ended September 30, 2014. The increases in 2015 are a result of additional purchases of bank-owned life insurance in the third quarter of 2014.

Within the noncore components of noninterest income, we recorded net losses on non-covered foreclosed properties of $0.9 million and $0.8 million in the three months ended September 30, 2015 and 2014, respectively, and net losses of $1.9 million and $1.5 million for the nine months ended September 30, 2015 and 2014, respectively. We continue to actively pursue disposal of our foreclosed properties and, in some cases, we have been willing to accept reasonable levels of losses in order to do so.

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We recorded losses on covered foreclosed properties of $0.1 million during the three months ended September 30, 2015 compared to gains on covered foreclosed properties of $0.8 million during the three months ended September 30, 2014. During the nine months ended September 30, 2015 and 2014, we recorded gains of $0.4 million and losses of $2.5 million, respectively. Losses on covered foreclosed properties have generally been lower as we are holding significantly lower levels of covered foreclosed properties and we have seen recovery in property values, particularly along the coast of North Carolina, which is where most of our foreclosed properties are located.

Indemnification asset income (expense) is recorded to reflect additional (decreased) amounts expected to be received from the FDIC during the period related to covered assets. The three primary items that result in recording indemnification asset income (expense) are 1) income from loan discount accretion, which results in indemnification expense, 2) provisions for loan losses on covered loans, which result in indemnification income and 3) foreclosed property gains (losses) on covered assets, which also result in indemnification expense (income). In the third quarter of 2015, we recorded $2.9 million in indemnification asset expense compared to $3.2 million in indemnification asset expense in the third quarter of 2014. For the nine months ended September 30, 2015, indemnification asset expense amounted to $7.1 million compared to $9.7 million in indemnification asset expense for the same period of 2014. These variances are primarily due to lower indemnification asset expense associated with the lower loan discount accretion income recorded in the three and nine months ended September 30, 2015, as shown in the following table:

($ in millions)	For the Three Months Ended						For the Nine Months Ended
	Sept. 30, 2015			Sept. 30, 2014			Sept. 30, 2015			Sept. 30, 2014
Indemnification asset expense associated with loan discount accretion income	$	(1.4	)		(2.6	)		(4.6	)		(13.0	)
Indemnification asset income (expense) associated with loan losses (recoveries), net		(1.4	)		0.0			(2.0	)		1.7
Indemnification asset income (expense) associated with foreclosed property losses (gains), net		0.0			(0.6	)		(0.3	)		2.0
Other sources of indemnification asset income (expense)		(0.1	)		—			(0.2	)		(0.4	)
Total indemnification asset income (expense)	$	(2.9	)		(3.2	)		(7.1	)		(9.7	)

Securities gains/losses were insignificant for the three and nine months ended September 30, 2015 and were also insignificant for the three months ended September 30, 2104. For the nine month period ended September 30, 2014, we recorded $0.8 million in gains on sales of approximately $47.5 million in available for sale securities.

We recorded other gains of approximately $30,000 for each of the three month periods ended September 30, 2015 and 2014. We recorded other losses amounting to $0.2 million and $0.3 million for first nine months of 2015 and 2014, respectively. For 2015, the primary component of this line item is the $0.4 million write-off of a FDIC claim associated with a dispute settlement (see Note 9 for additional discussion), whereas in 2014, the net loss related primarily to losses on sales of vacated branch buildings.

Noninterest expenses amounted to $24.6 million in the third quarter of 2015, a 5.1% decline from the $25.9 million recorded in the third quarter of 2014. Noninterest expenses for the nine months ended September 30, 2015 amounted to $72.6 million, a decline of 2.2% from the $74.3 million recorded in the first nine months of 2014.

Personnel expense (salaries and employee benefits expense) was $14.6 million for the third quarter of 2015 compared to $14.3 million in the third quarter of 2014. For the nine months ended September 30, 2015 and 2014, personnel expense amounted to $42.2 million and $41.9 million respectively. The increases in 2015 are primarily as a result of the hiring of additional staff to drive growth, higher incentive compensation expense related to the Company’s performance, and expense associated with retention-related grants of common stock made to certain officers in 2015.

The combined amount of occupancy and equipment expense decreased slightly when comparing 2015 to 2014, amounting to $2.7 million and $2.8 million in the third quarters of 2015 and 2014, respectively, and $8.3 million and $8.5 million in the first nine months of 2015 and 2014, respectively. The declines in 2015 are primarily the result of the closure of nine branches in the fourth quarter of 2014.

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Other operating expenses amounted to $7.1 million for the third quarter of 2015 compared to $8.6 million in the third quarter of 2014, and $21.6 million in the first nine months of 2015 compared to $23.3 million in the first nine months of 2014. The declines in 2015 are primarily due to – 1) $0.9 million in charges recorded in the third quarter of 2014 associated with the announced closure and consolidation of nine bank branches and 2) lower deposit insurance premium expense due to lower deposit insurance premium rates.

For the third quarter of 2015, the provision for income taxes was $3.7 million, an effective tax rate of 34.5%, compared to $3.0 million for the same period of 2014, which is an effective tax rate of 34.6%. For the first nine months of 2015, the provision for income taxes was $10.6 million, an effective tax rate of 34.4%, compared to $9.7 million for the same period of 2014, which was an effective tax rate of 35.1%. The slightly lower provisions in 2015 are due to higher amounts of non-taxable income and a decline in the statutory income tax rate in North Carolina.

We accrued total preferred stock dividends of $0.1 million and $0.2 million in the three month periods ended September 30, 2015 and 2014, respectively. For the first nine months of 2015 and 2014, we accrued preferred stock dividends of $0.6 million and $0.7 million, respectively. These amounts are deducted from net income in computing “net income available to common shareholders.” Preferred dividends related to our Series B Preferred Stock and our Series C Preferred Stock. Our Series B Preferred Stock relates to $63.5 million in preferred stock that was issued to the U.S. Treasury in September 2011 in connection with our participation in the Small Business Lending Fund. From the September 2011 issuance date until December 31, 2013, the dividend rate on this stock was subject to fluctuation between 1% and 5% per anum based upon changes in the level of our “Qualified Small Business Lending” (“QSBL”).  We were able to continually increase our levels of QSBL such that our dividend rate decreased to approximately 1.0% by the first quarter of 2013 and remained at that level through December 31, 2013, at which point the dividend rate became fixed at 1.0%. In June 2015, we redeemed $32.0 million of the Series B Preferred Stock, which reduced the amount of preferred stock dividends we accrued during the third quarter of 2015. In October 2015, we redeemed the remaining $31.5 million (31,500 shares) of the outstanding SBLF Stock. Our Series C Preferred Stock relates to the December 2012 issuance of 728,706 shares of preferred stock that pay dividends at the same rate as we pay to holders of our common stock.

The Consolidated Statements of Comprehensive Income reflect other comprehensive income of $349,000 for the third quarter of 2015 compared to other comprehensive loss of $86,000 for the third quarter of 2014. For the nine months ended September 30, 2015 and 2014, we recorded other comprehensive loss of $132,000 and other comprehensive income of $32,000, respectively. The primary component of other comprehensive income for the periods presented was changes in unrealized holding gains (losses) of our available for sale securities. Our available for sale securities portfolio is predominantly comprised of fixed rate bonds that generally increase in value when market yields for fixed rate bonds decrease and decline in value when market yields for fixed rate bonds increase. Management has evaluated any unrealized losses on individual securities at each period end and determined that there is no other-than-temporary impairment.

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FINANCIAL CONDITION

Total assets at September 30, 2015 amounted to $3.27 billion, a 2.4% increase from a year earlier. Total loans at September 30, 2015 amounted to $2.48 billion, a 2.3% increase from a year earlier, and total deposits amounted to $2.71 billion, a 1.1% increase from a year earlier.

The following table presents information regarding the nature of changes in our levels of loans and deposits for the twelve months ended September 30, 2015 and for the first nine months of 2015.

October 1, 2014 to September 30, 2015	Balance at beginning of period		Internal Growth, net (1)			Growth from Acquisitions		Balance at end of period		Total percentage growth		Internal percentage growth (1)
Loans – Non-covered	$	2,292,841		82,253			—		2,375,094		3.6%		3.6%
Loans – Covered		133,249		(26,640	)		—		106,609		-20.0%		-20.0%
Total loans		2,426,090		55,613			—		2,481,703		2.3%		2.3%
Deposits – Noninterest bearing checking	$	540,349		94,938			—		635,287		17.6%		17.6%
Deposits – Interest bearing checking		538,815		71,093			—		609,908		13.2%		13.2%
Deposits – Money market		545,137		36,507			—		581,644		6.7%		6.7%
Deposits – Savings		178,260		9,347			—		187,607		5.2%		5.2%
Deposits – Brokered		99,169		(52,477	)		—		46,692		-52.9%		-52.9%
Deposits – Internet time		1,967		(1,967	)		—		—		-100.0%		-100.0%
Deposits – Time>$100,000		406,276		(68,062	)		—		338,214		-16.8%		-16.8%
Deposits – Time<$100,000		369,039		(60,638	)		—		308,401		-16.4%		-16.4%
Total deposits	$	2,679,012		28,741			—		2,707,753		1.1%		1.1%
January 1, 2015 to September 30, 2015
Loans – Non-covered	$	2,268,580		106,514			—		2,375,094		4.7%		4.7%
Loans – Covered		127,594		(20,985	)		—		106,609		-16.4%		-16.4%
Total loans	$	2,396,174		85,529			—		2,481,703		3.6%		3.6%
Deposits – Noninterest bearing checking	$	560,230		75,057			—		635,287		13.4%		13.4%
Deposits – Interest bearing checking		583,903		26,005			—		609,908		4.5%		4.5%
Deposits – Money market		548,255		33,389			—		581,644		6.1%		6.1%
Deposits – Savings		180,317		7,290			—		187,607		4.0%		4.0%
Deposits – Brokered		88,375		(41,683	)		—		46,692		-47.2%		-47.2%
Deposits – Internet time		747		(747	)		—		—		-100.0%		-100.0%
Deposits – Time>$100,000		384,127		(45,913	)		—		338,214		-12.0%		-12.0%
Deposits – Time<$100,000		349,952		(41,551	)		—		308,401		-11.9%		-11.9%
Total deposits	$	2,695,906		11,847			—		2,707,753		0.4%		0.4%

(1) Excludes the impact of acquisitions in the year of acquisition, but includes growth or declines in acquired operations after the date of acquisition.

As derived from the table above, for the twelve months ended September 30, 2015, total loans increased $55.6 million, or 2.3%, with internal non-covered loan growth of $82 million, or 3.6%, which was partially offset by a decline in covered loans of $27 million. For the first nine months of 2015, total loans increased $85.5 million, or 3.6%, with internal non-covered loan growth of $107 million, or 4.7%, which was partially offset by a decline in covered loans of $21 million. Over the past year and especially in the third quarter of 2015, we have seen positive results of loan growth initiatives at the Company. An improving economy has also contributed to the loan growth. Covered loans related to FDIC-assisted transactions continue to decline as those loans pay down or are otherwise resolved.

The mix of our loan portfolio remains substantially the same at September 30, 2015 compared to December 31, 2014. The majority of our real estate loans are personal and commercial loans where real estate provides additional security for the loan.

Note 7 to the Consolidated Financial Statements presents additional detailed information regarding our mix of loans, including a break-out between loans covered by FDIC loss share agreements and non-covered loans. Additionally, the section above titled “FDIC Indemnification Asset” contains detail of our covered loans and foreclosed properties segregated by each of the three remaining loss share agreements.

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For both the nine and twelve month periods ended September 30, 2015, we experienced net increases in total deposits, with declines in time deposits being offset by growth in transaction account balances (checking, money market, and savings). Time deposits are price sensitive, and with the growth experienced in our transaction accounts, we did not aggressively price our time deposits, nor renew maturing brokered deposits. Also impacting the mix of deposits is that some customers are shifting their funds from time deposits into transaction accounts at our company, which do not pay a materially lower interest rate, while being more liquid.

We obtained new borrowings of $60 million in the second quarter of 2015 from a low cost funding source in order to enhance our cash position and in anticipation of future loan growth. The average life of these new borrowings was approximately two years with a weighted average interest rate of 1.17%. Total borrowings at September 30, 2015 amounted to $176.4 million compared to $116.4 million a year earlier.

Nonperforming Assets

Nonperforming assets include nonaccrual loans, troubled debt restructurings, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate. As previously discussed, as a result of two FDIC-assisted transactions, we entered into loss share agreements that afford us significant protection from losses from all loans and foreclosed real estate acquired in those acquisitions.

Because of the loss protection provided by the FDIC, the financial risk of the acquired loans and foreclosed real estate is significantly different from the risk associated with assets not covered under the loss share agreements. Accordingly, we present separately nonperforming assets subject to the loss share agreements as “covered” nonperforming assets, and nonperforming assets that are not subject to the loss share agreements as “non-covered.”

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Nonperforming assets are summarized as follows:

ASSET QUALITY DATA ($ in thousands)	As of/for the quarter ended September 30, 2015		As of/for the quarter ended December 31, 2014		As of/for the quarter ended September 30, 2014
Non-covered nonperforming assets
Nonaccrual loans	$	42,347		50,066		53,620
Restructured loans – accruing		29,250		35,493		31,501
Accruing loans >90 days past due		—		—		—
Total non-covered nonperforming loans		71,597		85,559		85,121
Foreclosed real estate		9,304		9,771		11,705
Total non-covered nonperforming assets	$	80,901		95,330		96,826
Covered nonperforming assets (1)
Nonaccrual loans	$	5,373		10,508		10,478
Restructured loans – accruing		3,825		5,823		6,273
Accruing loans > 90 days past due		—		—		—
Total covered nonperforming loans		9,198		16,331		16,751
Foreclosed real estate		1,569		2,350		3,237
Total covered nonperforming assets	$	10,767		18,681		19,988
Total nonperforming assets	$	91,668		114,011		116,814
Asset Quality Ratios – All Assets
Net charge-offs to average loans - annualized		0.10%		0.82%		0.51%
Nonperforming loans to total loans		3.26%		4.25%		4.20%
Nonperforming assets to total assets		2.80%		3.54%		3.66%
Allowance for loan losses to total loans		1.21%		1.70%		1.82%
Allowance for loan losses to nonperforming loans		37.20%		39.87%		43.32%
Asset Quality Ratios – Based on Non-covered Assets only
Net charge-offs to average non-covered loans - annualized		0.38%		0.78%		0.60%
Non-covered nonperforming loans to non-covered loans		3.01%		3.77%		3.71%
Non-covered nonperforming assets to total non-covered assets		2.56%		3.09%		3.17%
Allowance for loan losses to non-covered loans		1.19%		1.69%		1.81%
Allowance for loan losses to non-covered nonperforming loans		39.32%		44.82%		48.83%

(1) Covered nonperforming assets consist of assets that are included in loss share agreements with the FDIC.

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

Consistent with the weak economy experienced in much of our market associated with the onset of the recession in 2008, we experienced higher levels of loan losses, delinquencies and nonperforming assets compared to our historical averages. While economic conditions have improved recently and our asset quality has steadily improved, we continue to have elevated levels of losses and nonperforming assets.

As shown in the table above, at September 30, 2015, total nonaccrual loans (covered and non-covered) amounted to $47.7 million, compared to $60.6 million at December 31, 2014 and $64.1 million at September 30, 2014. Non-covered nonaccrual loans were $42.3 million, $50.1 million, and $53.6 million at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Nonaccrual loans decreased during the first nine months of 2015 as we continue to focus on resolving our problem assets.

“Restructured loans – accruing”, or troubled debt restructurings (“TDRs”), are accruing loans for which we have granted concessions to the borrower as a result of the borrower’s financial difficulties.As seen in the table above “Asset Quality Data”, at September 30, 2015, total TDRs (covered and non-covered) amounted to $33.1 million, compared to $41.3 million at December 31, 2014 and $37.8 million at September 30, 2014.

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Foreclosed real estate includes primarily foreclosed properties. Non-covered foreclosed real estate has decreased over the past year, amounting to $9.3 million at September 30, 2015, $9.8 million at December 31, 2014, and $11.7 million at September 30, 2014.

At September 30, 2015, we also held $1.6 million in foreclosed real estate that is subject to the loss share agreements with the FDIC, which is a decline from $2.4 million at December 31, 2014 and $3.2 million at September 30, 2014. The decline is primarily due to increased property sales activity, particularly along the North Carolina coast, which is where most of our covered foreclosed properties are located.

The following is the composition, by loan type, of all of our nonaccrual loans (covered and non-covered) at each period end, as classified for regulatory purposes:

($ in thousands)	At September 30, 2015		At December 31, 2014		At September 30, 2014
Commercial, financial, and agricultural	$	2,914		3,575		4,307
Real estate – construction, land development, and other land loans		6,471		10,079		13,158
Real estate – mortgage – residential (1-4 family) first mortgages		21,182		26,916		24,286
Real estate – mortgage – home equity loans/lines of credit		3,263		4,214		4,018
Real estate – mortgage – commercial and other		13,616		15,190		17,664
Installment loans to individuals		274		600		665
Total nonaccrual loans	$	47,720		60,574		64,098

The following segregates our nonaccrual loans at September 30, 2015 into covered and non-covered loans, as classified for regulatory purposes:

($ in thousands)	Covered Nonaccrual Loans		Non-covered Nonaccrual Loans		Total Nonaccrual Loans
Commercial, financial, and agricultural	$	23		2,891		2,914
Real estate – construction, land development, and other land loans		60		6,411		6,471
Real estate – mortgage – residential (1-4 family) first mortgages		3,083		18,099		21,182
Real estate – mortgage – home equity loans/lines of credit		377		2,886		3,263
Real estate – mortgage – commercial and other		1,830		11,786		13,616
Installment loans to individuals		—		274		274
Total nonaccrual loans	$	5,373		42,347		47,720

The following segregates our nonaccrual loans at December 31, 2014 into covered and non-covered loans, as classified for regulatory purposes:

($ in thousands)	Covered Nonaccrual Loans		Non-covered Nonaccrual Loans		Total Nonaccrual Loans
Commercial, financial, and agricultural	$	104		3,471		3,575
Real estate – construction, land development, and other land loans		1,140		8,939		10,079
Real estate – mortgage – residential (1-4 family) first mortgages		7,724		19,192		26,916
Real estate – mortgage – home equity loans/lines of credit		339		3,875		4,214
Real estate – mortgage – commercial and other		1,201		13,989		15,190
Installment loans to individuals		—		600		600
Total nonaccrual loans	$	10,508		50,066		60,574

The tables above indicate declines in most categories of nonaccrual loans. The decreases reflect stabilization in most of our market areas and our increased focus on the resolution of our nonperforming assets.

We believe that the fair values of the items of foreclosed real estate, less estimated costs to sell, equal or exceed their respective carrying values at the dates presented. The following table presents the detail of all of our foreclosed real estate at each period end (covered and non-covered):

($ in thousands)	At September 30, 2015		At December 31, 2014		At September 30, 2014
Vacant land	$	4,546		4,964		6,989
1-4 family residential properties		4,106		2,878		3,008
Commercial real estate		2,221		4,279		4,945
Total foreclosed real estate	$	10,873		12,121		14,942

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The following segregates our foreclosed real estate at September 30, 2015 into covered and non-covered:

($ in thousands)	Covered Foreclosed Real Estate		Non-covered Foreclosed Real Estate		Total Foreclosed Real Estate
Vacant land	$	552		3,994		4,546
1-4 family residential properties		642		3,464		4,106
Commercial real estate		375		1,846		2,221
Total foreclosed real estate	$	1,569		9,304		10,873

The following segregates our foreclosed real estate at December 31, 2014 into covered and non-covered:

($ in thousands)	Covered Foreclosed Real Estate		Non-covered Foreclosed Real Estate		Total Foreclosed Real Estate
Vacant land	$	639		4,325		4,964
1-4 family residential properties		866		2,012		2,878
Commercial real estate		845		3,434		4,279
Total foreclosed real estate	$	2,350		9,771		12,121

The following table presents geographical information regarding our nonperforming assets at September 30, 2015.

	As of September 30, 2015
($ in thousands)	Covered		Non-covered		Total		Total Loans		Nonperforming Loans to Total Loans
Nonaccrual loans and Troubled Debt Restructurings (1)
Eastern Region (NC)	$	6,055		15,370		21,425	$	636,000		3.4%
Triangle Region (NC)		—		20,750		20,750		737,000		2.8%
Triad Region (NC)		—		15,421		15,421		332,000		4.6%
Charlotte Region (NC)		—		1,731		1,731		98,000		1.8%
Southern Piedmont Region (NC)		90		7,308		7,398		263,000		2.8%
Western Region (NC)		3,024		—		3,024		82,000		3.7%
South Carolina Region		29		2,811		2,840		112,000		2.5%
Virginia Region		—		8,206		8,206		200,000		4.1%
Other		—		—		—		22,000		0.0%
Total nonaccrual loans and troubled debt restructurings	$	9,198		71,597		80,795	$	2,482,000		3.3%
Foreclosed Real Estate (1)
Eastern Region (NC)	$	913		1,607		2,520
Triangle Region (NC)		—		3,180		3,180
Triad Region (NC)		—		1,373		1,373
Charlotte Region (NC)		—		883		883
Southern Piedmont Region (NC)		—		1,011		1,011
Western Region (NC)		656		—		656
South Carolina Region		—		952		952
Virginia Region		—		298		298
Other		—		—		—
Total foreclosed real estate		1,569		9,304		10,873

(1) The counties comprising each region are as follows:

Eastern North Carolina Region - New Hanover, Brunswick, Duplin, Dare, Beaufort, Pitt, Onslow, Carteret

Triangle North Carolina Region - Moore, Lee, Harnett, Chatham, Wake

Triad North Carolina Region - Montgomery, Randolph, Davidson, Rockingham, Guilford, Stanly

Charlotte North Carolina Region - Iredell, Cabarrus, Rowan, Mecklenburg

Southern Piedmont North Carolina Region - Anson, Richmond, Scotland, Robeson, Bladen, Columbus, Cumberland

Western North Carolina Region - Buncombe

South Carolina Region - Chesterfield, Dillon, Florence

Virginia Region - Wythe, Washington, Montgomery, Roanoke

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Summary of Loan Loss Experience

The allowance for loan losses is created by direct charges to operations (known as a “provision for loan losses” for the period in which the charge is taken). Losses on loans are charged against the allowance in the period in which such loans, in management’s opinion, become uncollectible. The recoveries realized during the period are credited to this allowance.

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

The weak economic environment that began in 2008 resulted in elevated levels of classified and nonperforming assets, which generally led to higher provisions for loan losses compared to historical averages. While we are seeing signs of a recovering economy in most of our market areas, it has been a gradual improvement. Although we continue to have an elevated level of past due and adversely classified assets compared to historic averages, we believe the severity of the loss rate inherent in our current inventory of classified loans is less than in recent years.

We recorded a negative total provision for loan losses (reduction of the allowance for loan losses) of $1.4 million for the third quarter of 2015 compared to a provision for loan losses of $1.5 million for the third quarter of 2014. For the nine months ended September 30, 2015, we recorded a negative total provision for loan losses of $0.7 million compared to a provision for loan losses of $8.7 million for the same period of 2014. The total provision for loan losses is comprised of provisions for loan losses for non-covered loans and provisions for loan losses for covered loans, as discussed in the following paragraphs.

The provision for loan losses on non-covered loans amounted to $0.3 million and $1.3 million in the third quarters of 2015 and 2014, respectively, and $1.4 million and $5.8 million for the first nine months of 2015 and 2014, respectively. The lower provision in 2015 was primarily the result of improved credit quality trends and generally improving economic trends, as discussed in the following paragraph.

Non-covered loan growth for the first nine months of 2015 was $107 million compared to almost no growth for the first nine months of 2014, which resulted in a larger incremental provision for the loan losses attributable to loan growth. However, offsetting this larger incremental provision were favorable trends in our asset quality. As shown in a table within Note 7 to the Consolidated Financial Statements, our total non-covered classified and nonaccrual loans decreased from $125 million at December 31, 2014 to $103 million at September 30, 2015. Additionally, our allowance for loan loss model utilizes the net charge-offs experienced in the most recent years as a significant component of estimating the current allowance for loan losses that is necessary. Thus, older years (and parts thereof) systematically age out and are excluded from the analysis as time goes on. Periods of high net charge-offs we experienced during the peak of the recession are now dropping out of the analysis and being replaced by the more modest levels of net charge-offs now being experienced. The third quarter of 2015 marked our eleventh consecutive quarter of annualized net charge-offs related to non-covered loans being less than 1.00%, whereas at the peak of the recession that ratio was frequently over 1.00%. In the near term, we expect that net charge-offs experienced in the next few quarters will continue to be less than those experienced in the recessionary periods that are dropping out of the analysis, and for that reason we expect our resulting provisions for loan losses to be favorably impacted.

We recorded negative provisions for loan losses on covered loans (reduction of the allowance for loan losses) of $1.7 million and $2.1 million during the three and nine months ended September 30, 2015, respectively, compared to provisions for loan losses of $0.2 million and $2.9 million for the same respective periods of 2014. The negative provisions in 2015 primarily resulted from lower levels of covered nonperforming loans, declining levels of total covered loans, and net loan recoveries (recoveries, net of charge-offs).

For the first nine months of 2015, we recorded $9.8 million in net charge-offs, compared to $13.1 million for the comparable period of 2014. The net charge-offs in 2015 included $1.7 million of net covered loan recoveries and $11.6 million of net non-covered loan charge-offs, whereas in 2014 net charge-offs included $2.9 million in net charge-offs of covered loans and $10.2 million in net charge-offs of non-covered loans.

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The allowance for loan losses amounted to $30.1 million at September 30, 2015, compared to $40.6 million at December 31, 2014 and $44.1 million at September 30, 2014. The allowance for loan losses for non-covered loans was $28.2 million, $38.3 million, and $41.6 million at September 30, 2015, December 31, 2014, and September 30, 2014 respectively. The ratio of our allowance for non-covered loans to total non-covered loans has declined from 1.81% at September 30, 2014 to 1.19% at September 30, 2015 as a result of the factors discussed above that impacted our provision for loan losses on non-covered loans.

At September 30, 2015, December 31, 2014, and September 30, 2014, the allowance for loan losses attributable to covered loans was $1.9 million, $2.3 million, and $2.6 million, respectively.

We believe our reserve levels are adequate to cover probable loan losses on the loans outstanding as of each reporting date. It must be emphasized, however, that the determination of the reserve using our procedures and methods rests upon various judgments and assumptions about economic conditions and other factors affecting loans. No assurance can be given that we will not in any particular period sustain loan losses that are sizable in relation to the amounts reserved or that subsequent evaluations of the loan portfolio, in light of conditions and factors then prevailing, will not require significant changes in the allowance for loan losses or future charges to earnings. See “Critical Accounting Policies – Allowance for Loan Losses” above.

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

For the periods indicated, the following table summarizes our balances of loans outstanding, average loans outstanding, changes in the allowance for loan losses arising from charge-offs and recoveries, and additions to the allowance for loan losses that have been charged to expense.

($ in thousands)	Nine Months Ended September 30,			Twelve Months Ended December 31,			Nine Months Ended September 30,
	2015			2014			2014
Loans outstanding at end of period	$	2,481,703			2,396,174			2,426,090
Average amount of loans outstanding	$	2,411,462			2,434,331			2,442,069
Allowance for loan losses, at beginning of year	$	40,626			48,505			48,505
Provision for loan losses		(737	)		10,195			8,719
		39,889			58,700			57,224
Loans charged off:
Commercial, financial, and agricultural		(2,885	)		(5,179	)		(4,387	)
Real estate – construction, land development & other land loans		(3,232	)		(6,071	)		(5,531	)
Real estate – mortgage – residential (1-4 family) first mortgages		(4,110	)		(4,050	)		(2,421	)
Real estate – mortgage – home equity loans / lines of credit		(772	)		(1,607	)		(1,131	)
Real estate – mortgage – commercial and other		(2,610	)		(4,405	)		(2,419	)
Installment loans to individuals		(1,998	)		(1,924	)		(1,448	)
Total charge-offs		(15,607	)		(23,236	)		(17,337	)
Recoveries of loans previously charged-off:
Commercial, financial, and agricultural		781			149			80
Real estate – construction, land development & other land loans		3,063			3,363			2,924
Real estate – mortgage – residential (1-4 family) first mortgages		551			646			451
Real estate – mortgage – home equity loans / lines of credit		129			100			68
Real estate – mortgage – commercial and other		928			446			356
Installment loans to individuals		321			458			365
Total recoveries		5,773			5,162			4,244
Net charge-offs		(9,834	)		(18,074	)		(13,093	)
Allowance for loan losses, at end of period	$	30,055			40,626			44,131
Ratios:
Net charge-offs as a percent of average loans (annualized)		0.55%			0.74%			0.72%
Allowance for loan losses as a percent of loans at end of  period		1.21%			1.70%			1.82%

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The following table discloses the activity in the allowance for loan losses for the nine months ended September 30, 2015, segregated into covered and non-covered.

	Nine Months Ended September 30, 2015
($ in thousands)	Covered			Non-covered			Total
Loans outstanding at end of period	$	106,609			2,375,094			2,481,703
Average amount of loans outstanding	$	116,964			2,294,498			2,411,462
Allowance for loan losses, at beginning of year	$	2,281			38,345			40,626
Provision (reversal) for loan losses		(2,109	)		1,372			(737	)
		172			39,717			39,889
Loans charged off:
Commercial, financial, and agricultural		(111	)		(2,774	)		(2,885	)
Real estate – construction, land development & other land loans		(559	)		(2,673	)		(3,232	)
Real estate – mortgage – residential (1-4 family) first mortgages		(185	)		(3,925	)		(4,110	)
Real estate – mortgage – home equity loans / lines of credit		(45	)		(727	)		(772	)
Real estate – mortgage – commercial and other		(300	)		(2,310	)		(2,610	)
Installment loans to individuals		—			(1,998	)		(1,998	)
Total charge-offs		(1,200	)		(14,407	)		(15,607	)
Recoveries of loans previously charged-off:
Commercial, financial, and agricultural		85			696			781
Real estate – construction, land development & other land loans		2,119			944			3,063
Real estate – mortgage – residential (1-4 family) first mortgages		310			241			551
Real estate – mortgage – home equity loans / lines of credit		25			104			129
Real estate – mortgage – commercial and other		382			546			928
Installment loans to individuals		7			314			321
Total recoveries		2,928			2,845			5,773
Net (charge-offs)/recoveries		1,728			(11,562	)		(9,834	)
Allowance for loan losses, at end of period	$	1,900			28,155			30,055

The following table discloses the activity in the allowance for loan losses for the nine months ended September 30, 2014, segregated into covered and non-covered.

	Nine Months Ended September 30, 2014
($ in thousands)	Covered			Non-covered			Total
Loans outstanding at end of period	$	133,249			2,292,841			2,426,090
Average amount of loans outstanding	$	177,741			2,264,328			2,442,069
Allowance for loan losses, at beginning of year	$	4,242			44,263			48,505
Provision for loan losses		2,917			5,802			8,719
Transfer of covered allowance for loan losses to non-covered status		(1,737	)		1,737			—
		5,422			51,802			57,224
Loans charged off:
Commercial, financial, and agricultural		(1,086	)		(3,301	)		(4,387	)
Real estate – construction, land development & other land loans		(3,715	)		(1,816	)		(5,531	)
Real estate – mortgage – residential (1-4 family) first mortgages		(558	)		(1,863	)		(2,421	)
Real estate – mortgage – home equity loans / lines of credit		(74	)		(1,057	)		(1,131	)
Real estate – mortgage – commercial and other		(430	)		(1,989	)		(2,419	)
Installment loans to individuals		(2	)		(1,446	)		(1,448	)
Total charge-offs		(5,865	)		(11,472	)		(17,337	)
Recoveries of loans previously charged-off:
Commercial, financial, and agricultural		2			78			80
Real estate – construction, land development & other land loans		2,560			364			2,924
Real estate – mortgage – residential (1-4 family) first mortgages		244			207			451
Real estate – mortgage – home equity loans / lines of credit		—			68			68
Real estate – mortgage – commercial and other		204			152			356
Installment loans to individuals		—			365			365
Total recoveries		3,010			1,234			4,244
Net charge-offs		(2,855	)		(10,238	)		(13,093	)
Allowance for loan losses, at end of period	$	2,567			41,564			44,131

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Based on the results of our loan analysis and grading program and our evaluation of the allowance for loan losses at September 30, 2015, there have been no material changes to the allocation of the allowance for loan losses among the various categories of loans since December 31, 2014.

Liquidity, Commitments, and Contingencies

Our liquidity is determined by our ability to convert assets to cash or acquire alternative sources of funds to meet the needs of our customers who are withdrawing or borrowing funds, and to maintain required reserve levels, pay expenses and operate the Company on an ongoing basis. Our primary liquidity sources are net income from operations, cash and due from banks, federal funds sold and other short-term investments. Our securities portfolio is comprised almost entirely of readily marketable securities, which could also be sold to provide cash.

In addition to internally generated liquidity sources, we have the ability to obtain borrowings from the following four sources - 1) an approximately $582 million line of credit with the FHLB (of which $130 million was outstanding at September 30, 2015), 2) a $50 million overnight federal funds line of credit with a correspondent bank (of which none was outstanding at September 30, 2015), 3) a $35 million federal funds line of credit with a correspondent bank (of which none was outstanding at September 30, 2015), and 4) an approximately $94 million line of credit through the Federal Reserve Bank of Richmond’s discount window (of which none was outstanding at September 30, 2015). In addition to the outstanding borrowings from the FHLB that reduce the available borrowing capacity of that line of credit, our borrowing capacity was reduced by $193 million at both September 30, 2015 and September 30, 2014 as a result of our pledging letters of credit for public deposits at each of those dates. Unused and available lines of credit amounted to $438 million at September 30, 2015 compared to $288 million at December 31, 2014.

Our overall liquidity has remained relatively stable since September 30, 2014. Our liquid assets (cash and securities) as a percentage of our total deposits and borrowings were 19.7% at September 30, 2014, 21.2% at December 31, 2014 and 19.4% at September 30, 2015.

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. We will continue to monitor our liquidity position carefully and will explore and implement strategies to increase liquidity if deemed appropriate.

The amount and timing of our contractual obligations and commercial commitments has not changed materially since December 31, 2014, detail of which is presented in Table 18 on page 88 of our 2014 Annual Report on Form 10-K.

We are not involved in any legal proceedings that, in our opinion, could have a material effect on our consolidated financial position.

Off-Balance Sheet Arrangements and Derivative Financial Instruments

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

Derivative financial instruments include futures, forwards, interest rate swaps, options contracts, and other financial instruments with similar characteristics. We have not engaged in significant derivative activities through September 30, 2015, and have no current plans to do so.

Capital Resources

We are regulated by the Board of Governors of the Federal Reserve System (the “FED”) and are subject to the securities registration and public reporting regulations of the SEC. Our banking subsidiary is regulated by the North Carolina Office of the Commissioner of Banks and until April 22, 2015, our bank subsidiary was also regulated by the Federal Deposit Insurance Corporation (“FDIC”). Effective April 22, 2015, our bank subsidiary became a member of the FED, and therefore, the Federal Reserve Bank replaced the FDIC as our bank’s primary federal regulator. 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.

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We must comply with regulatory capital requirements established by the FED. 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. Under 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 FED has approved the final rules implementing the Basel Committee on Banking Supervision capital guidelines, referred to a “Basel III.” The final rules established a new “Common Equity Tier 1” ratio; new higher capital ratio requirements, including a capital conservation buffer; narrowed the definitions of capital; imposed new operating restrictions on banking organizations with insufficient capital buffers; and increased the risk weighting of certain assets. The final rules became effective January 1, 2015 for the Company. The capital conservation buffer requirement will be phased in beginning January 1, 2016, at 0.625% of risk weighted assets, increasing each year until fully implemented at 2.5% in January 1, 2019.

The capital standards require us to maintain minimum ratios of “Common Equity Tier 1” capital to total risk-weighted assets, “Tier 1” capital to total risk-weighted assets, and total capital to risk-weighted assets of 4.50%, 6.00% and 8.00%, respectively. Common Equity Tier 1 capital in 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 for the Company includes non-cumulative perpetual preferred stock and trust preferred securities. Total capital is comprised of Tier 1 capital plus certain adjustments, the largest of which is our allowance for loan losses. Risk-weighted assets refer to our on- and off-balance sheet exposures, adjusted for their related risk levels using formulas set forth in FED and FDIC 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 FED has not advised us of any requirement specifically applicable to us.

At September 30, 2015, our capital ratios exceeded the regulatory minimum ratios discussed above. The following table presents our capital ratios and the regulatory minimums discussed above for the periods indicated.

	September 30, 2015		December 31, 2014		September 30, 2014
	(Based on Basel III)		(Pre-Basel III)		(Pre-Basel III)
Risk-based capital ratios:
Common Equity Tier 1 to Tier 1 risk weighted assets		11.33%		n/a		n/a
Minimum required Common Equity Tier 1 capital		4.50%		n/a		n/a
Tier I capital to Tier 1 risk weighted assets		14.76%		16.35%		16.01%
Minimum required Tier 1 capital		6.00%		4.00%		4.00%
Total risk-based capital to Tier II risk weighted assets		15.99%		17.60%		17.27%
Minimum required total risk-based capital		8.00%		8.00%		8.00%
Leverage capital ratios:
Tier 1 capital to quarterly average total assets		11.31%		11.61%		11.39%
Minimum required Tier 1 leverage capital		4.00%		4.00%		4.00%

Our bank subsidiary is also subject to capital requirements similar to those discussed above. The bank subsidiary’s capital ratios do not vary materially from our capital ratios presented above. At September 30, 2015, our bank subsidiary exceeded the minimum ratios established by the regulatory authorities.

In the table above, the declines in our capital ratios at September 30, 2015 are as a result of the Company redeeming $32 million in Series B Preferred Stock in June 2015. See Note 14 to the Consolidated Financial Statements for additional discussion.

Page 66 

In addition to regulatory capital ratios, we also closely monitor our ratio of tangible common equity to tangible assets (“TCE Ratio”). Our TCE ratio was 8.27% at September 30, 2015 compared to 7.90% at December 31, 2014 and 7.86% at September 30, 2014.

BUSINESS DEVELOPMENT MATTERS

The following is a list of business development and other miscellaneous matters affecting the Company and First Bank, our bank subsidiary.

· On September 15, 2015, the Company announced a quarterly cash dividend of $0.08 per share payable on October 23, 2015 to shareholders of record on September 30, 2015. This is the same dividend rate as the Company declared in the third quarter of 2014.

· On October 19, 2015, the Company opened a full-service branch located at 2939 Village Drive in Fayetteville, North Carolina. The Company previously had a loan production office in Fayetteville, North Carolina.

SHARE REPURCHASES

We did not repurchase any shares of our common stock during the first nine months of 2015. At September 30, 2015, we had approximately 214,000 shares available for repurchase under existing authority from our board of directors. We may repurchase these shares in open market and privately negotiated transactions, as market conditions and our liquidity warrants, subject to compliance with applicable regulations. See also Part II, Item 2 “Unregistered Sales of Equity Securities and Use of Proceeds.”

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

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

Net interest income is our most significant component of earnings. Notwithstanding changes in volumes of loans and deposits, our level of net interest income is continually at risk due to the effect that changes in general market interest rate trends have on interest yields earned and paid with respect to our various categories of earning assets and interest-bearing liabilities. It is our policy to maintain portfolios of earning assets and interest-bearing liabilities with maturities and repricing opportunities that will afford protection, to the extent practical, against wide interest rate fluctuations. Our exposure to interest rate risk is analyzed on a regular basis by management using standard GAP reports, maturity reports, and an asset/liability software model that simulates future levels of interest income and expense based on current interest rates, expected future interest rates, and various intervals of “shock” interest rates. Over the years, we have been able to maintain a fairly consistent yield on average earning assets (net interest margin). Over the past five calendar years, our net interest margin has ranged from a low of 4.39% (realized in 2010) to a high of 4.92% (realized in 2013). During that five year period, the prime rate of interest has consistently remained at 3.25% (which was the rate as of September 30, 2015). The consistency of the net interest margin is aided by the relatively low level of long-term interest rate exposure that we maintain. At September 30, 2015, approximately 76% of our interest-earning assets are subject to repricing within five years (because they are either adjustable rate assets or they are fixed rate assets that mature) and substantially all of our interest-bearing liabilities reprice within five years.

Using stated maturities for all fixed rate instruments except mortgage-backed securities (which are allocated in the periods of their expected payback) and securities and borrowings with call features that are expected to be called (which are shown in the period of their expected call), at September 30, 2015, we had approximately $876 million more in interest-bearing liabilities that are subject to interest rate changes within one year than earning assets. This generally would indicate that net interest income would experience downward pressure in a rising interest rate environment and would benefit from a declining interest rate environment. However, this method of analyzing interest sensitivity only measures the magnitude of the timing differences and does not address earnings, market value, or management actions. Also, interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. In addition to the effects of “when” various rate-sensitive products reprice, market rate changes may not result in uniform changes in rates among all products. For example, included in interest-bearing liabilities subject to interest rate changes within one year at September 30, 2015 are deposits totaling $1.4 billion comprised of checking, savings, and certain types of money market deposits with interest rates set by management. These types of deposits historically have not repriced with, or in the same proportion, as general market indicators.

Page 67 

Overall, we believe that in the near term (twelve months), net interest income will not likely experience significant downward pressure from rising interest rates. Similarly, we would not expect a significant increase in near term net interest income from falling interest rates. Generally, when rates change, our interest-sensitive assets that are subject to adjustment reprice immediately at the full amount of the change, while our interest-sensitive liabilities that are subject to adjustment reprice at a lag to the rate change and typically not to the full extent of the rate change. In the short-term (less than six months), this results in us being asset-sensitive, meaning that our net interest income benefits from an increase in interest rates and is negatively impacted by a decrease in interest rates. However, in the twelve-month horizon, the impact of having a higher level of interest-sensitive liabilities lessens the short-term effects of changes in interest rates.

The general discussion in the foregoing paragraph applies most directly in a “normal” interest rate environment in which longer-term maturity instruments carry higher interest rates than short-term maturity instruments, and is less applicable in periods in which there is a “flat” interest rate curve. A “flat yield curve” means that short-term interest rates are substantially the same as long-term interest rates. As a result of the prolonged fragile economic environment that continued into 2014, the Federal Reserve took steps to suppress long-term interest rates in an effort to boost the housing market, increase employment, and stimulate the economy, which resulted in a flat interest rate curve. A flat interest rate curve is an unfavorable interest rate environment for many banks, including the Company, as short-term interest rates generally drive our deposit pricing and longer-term interest rates generally drive loan pricing. When these rates converge, the profit spread we realize between loan yields and deposit rates narrows, which pressures our net interest margin.

While there have been periods in the last few years that the yield curve has steepened somewhat, it currently remains relatively flat. This flat yield curve and the intense competition for high-quality loans in our market areas have limited our ability to charge higher rates on loans, and thus we continue to experience downward pressure on our loan yields and net interest margin.

As it relates to deposits, the Federal Reserve has made no changes to the short term interest rates it sets directly since 2008, and since that time we have been able to reprice many of our maturing time deposits at lower interest rates. We were also able to generally decrease the rates we paid on other categories of deposits as a result of declining short-term interest rates in the marketplace and an increase in liquidity that lessened our need to offer premium interest rates. However, as short-term rates are already near zero, it is unlikely that we will be able to continue the trend of reducing our funding costs in the same proportion as experienced in recent years.

As previously discussed in the section “Net Interest Income,” our net interest income has been impacted by certain purchase accounting adjustments related primarily to our acquisitions of Cooperative Bank and The Bank of Asheville. The purchase accounting adjustments related to the premium amortization on loans, deposits and borrowings are based on amortization schedules and are thus systematic and predictable. The accretion of the loan discount on loans acquired from Cooperative Bank and The Bank of Asheville, which amounted to $1.2 million and $2.6 million for the third quarters of 2015 and 2014, respectively, and $3.9 million and $13.8 million for the first nine months of 2015 and 2014, respectively, is less predictable and could be materially different among periods. This is because of the magnitude of the discounts that were initially recorded ($280 million in total) and the fact that the accretion being recorded is dependent on both the credit quality of the acquired loans and the impact of any accelerated loan repayments, including payoffs. If the credit quality of the loans declines, some, or all, of the remaining discount will cease to be accreted into income. If the underlying loans experience accelerated paydowns or improved performance expectations, the remaining discount will be accreted into income on an accelerated basis. In the event of total payoff, the remaining discount will be entirely accreted into income in the period of the payoff. Each of these factors is difficult to predict and susceptible to volatility. However, with the remaining loan discount on accruing loans having naturally declined since inception, amounting to $16.2 million at September 30, 2015, we expect that loan discount accretion, and the related indemnification asset expense associated with the accretion, will continue to decline in 2015. If that occurs, our net interest margin will be negatively impacted and our noninterest income will be positively impacted (due to the lower indemnification asset expense).

Based on our most recent interest rate modeling, which assumes no changes in interest rates for 2015 (federal funds rate = 0.25%, prime = 3.25%), we project that our net interest margin for the remainder of 2015 will experience some compression. We expect loan yields to continue to trend downwards, while many of our deposit products already have interest rates near zero.

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We have no market risk sensitive instruments held for trading purposes, nor do we maintain any foreign currency positions.

See additional discussion regarding net interest income, as well as discussion of the changes in the annual net interest margin in the section entitled “Net Interest Income” above.

Item 4 – Controls and Procedures

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

Part II. Other Information

Item 1 – Legal Proceedings

Various legal proceedings may arise in the ordinary course of business and may be pending or threatened against the Company and its subsidiaries.  However, neither the Company nor any of its subsidiaries is currently 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.

Page 69 

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

Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased (2)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1, 2015 to July 31, 2015		—		—		—		214,241
August 1, 2015 to August 31, 2015		—		—		—		214,241
September 1, 2015 to September 30, 2015		—		—		—		214,241
Total		—		—		—		214,241

Footnotes to the Above Table

(1) All shares available for repurchase are pursuant to publicly announced share repurchase authorizations. On July 30, 2004, the Company announced that its board of directors had approved the repurchase of 375,000 shares of the Company’s common stock. The repurchase authorization does not have an expiration date. There are no plans or programs the Company has determined to terminate prior to expiration, or under which we do not intend to make further purchases.

(2) The table above does not include shares that were used by option holders to satisfy the exercise price of the call options issued by the Company to its employees and directors pursuant to the Company’s stock option plans. There were no such exercises during the three months ended September 30, 2015.

There were no unregistered sales of our securities during the three months ended September 30, 2015.

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 SEC File No. 000-15572. Management contracts, compensatory plans and arrangements are marked with an asterisk (*).

31.1 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 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 September 30, 2015, 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, Secretary, 300 SW Broad Street, Southern Pines, North Carolina, 28387

Page 70 

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
November 9, 2015	BY:/s/ Richard H. Moore
	Richard H. Moore
	President
	(Principal Executive Officer),
	Treasurer and Director
November 9, 2015	BY:/s/ Eric P. Credle
	Eric P. Credle
	Executive Vice President
	and Chief Financial Officer

Page 71 

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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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.

November 9, 2015	/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, Eric P. Credle, 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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.

November 9, 2015	/s/ Eric P. Credle
	Eric P. Credle
	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 ending September 30, 2015 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
November 9, 2015

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 ending September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Eric P. Credle, 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/ Eric P. Credle
Eric P. Credle
Chief Financial Officer
November 9, 2015

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

Securities (Summary of Book Values and Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Securities available for sale:
Amortized Cost	$ 179,608	$ 158,708
Fair Value	178,765	158,018	$ 153,238
Unrealized Gains	647	830
Unrealized (Losses)	(1,490)	(1,520)
Securities held to maturity:
Amortized Cost	160,048	178,687	53,821
Fair Value	162,858	182,411	$ 57,601
Unrealized Gains	3,258	3,832
Unrealized (Losses)	(448)	(108)
Government-sponsored enterprises securities [Member]
Securities available for sale:
Amortized Cost	27,789	27,546
Fair Value	27,850	27,521
Unrealized Gains	69	33
Unrealized (Losses)	(8)	(58)
Mortgage-backed securities [Member]
Securities available for sale:
Amortized Cost	126,508	130,073
Fair Value	125,836	129,510
Unrealized Gains	520	751
Unrealized (Losses)	(1,192)	(1,314)
Securities held to maturity:
Amortized Cost	107,787	124,924
Fair Value	$ 107,360	124,861
Unrealized Gains		45
Unrealized (Losses)	$ (427)	(108)
Corporate bonds [Member]
Securities available for sale:
Amortized Cost	25,223	1,000
Fair Value	24,948	$ 865
Unrealized Gains	4
Unrealized (Losses)	(279)	$ (135)
Equity securities [Member]
Securities available for sale:
Amortized Cost	88	89
Fair Value	131	122
Unrealized Gains	54	46
Unrealized (Losses)	(11)	(13)
States and local governments [Member]
Securities held to maturity:
Amortized Cost	52,261	53,763
Fair Value	55,498	57,550
Unrealized Gains	3,258	$ 3,787
Unrealized (Losses)	$ (21)

XML

Loans and Asset Quality Information (Schedule of Recorded Investment in Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Recorded investment in loans by credit quality indicators:
Non-covered loans	$ 2,374,329	$ 2,267,634
Unamortized net deferred loan costs	765	946	$ 730
Covered loans	106,609	127,594	133,249
Total loans	2,481,703	2,396,174	$ 2,426,090
Non-covered [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	2,375,094	2,268,580
Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	50,529	37,284
Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	118,087	106,974
Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	33,627	22,470
Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	275,404	257,515
Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	851,372	846,833
Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	202,618	198,577
Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	799,191	754,785
Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	43,501	43,196
Pass (Grades 1, 2 and 3) [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	846,715	742,115
Covered loans	12,332	14,349
Total loans	859,047	756,464
Pass (Grades 1, 2 and 3) [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	28,490	17,856
Pass (Grades 1, 2 and 3) [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	54,927	32,812
Pass (Grades 1, 2 and 3) [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	13,154	10,815
Pass (Grades 1, 2 and 3) [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	96,745	87,806
Pass (Grades 1, 2 and 3) [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	213,179	221,581
Pass (Grades 1, 2 and 3) [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	129,421	122,528
Pass (Grades 1, 2 and 3) [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	281,428	223,197
Pass (Grades 1, 2 and 3) [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	29,371	25,520
Pass - Acceptable/Average (Grade 4) [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	1,316,015	1,287,451
Covered loans	61,065	70,989
Total loans	1,377,080	1,358,440
Pass - Acceptable/Average (Grade 4) [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	19,737	15,649
Pass - Acceptable/Average (Grade 4) [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	55,401	62,361
Pass - Acceptable/Average (Grade 4) [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	19,525	9,928
Pass - Acceptable/Average (Grade 4) [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	151,784	135,072
Pass - Acceptable/Average (Grade 4) [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	535,203	520,790
Pass - Acceptable/Average (Grade 4) [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	60,464	62,642
Pass - Acceptable/Average (Grade 4) [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	461,060	465,395
Pass - Acceptable/Average (Grade 4) [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	12,841	15,614
Watch or Standard Loans (Grade 9) [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	14,697	15,620
Covered loans	253	632
Total loans	$ 14,950	16,252
Watch or Standard Loans (Grade 9) [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans		5
Watch or Standard Loans (Grade 9) [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	$ 32	$ 62
Watch or Standard Loans (Grade 9) [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans
Watch or Standard Loans (Grade 9) [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	$ 679	$ 771
Watch or Standard Loans (Grade 9) [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	4,420	4,536
Watch or Standard Loans (Grade 9) [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	1,412	1,135
Watch or Standard Loans (Grade 9) [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	8,102	9,057
Watch or Standard Loans (Grade 9) [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	52	54
Special Mention Loans (Grade 5) [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	93,535	97,002
Covered loans	8,505	10,503
Total loans	102,040	107,505
Special Mention Loans (Grade 5) [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	1,161	1,356
Special Mention Loans (Grade 5) [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	3,224	4,481
Special Mention Loans (Grade 5) [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	273	767
Special Mention Loans (Grade 5) [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	12,355	13,066
Special Mention Loans (Grade 5) [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	44,175	40,993
Special Mention Loans (Grade 5) [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	5,067	5,166
Special Mention Loans (Grade 5) [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	26,880	30,318
Special Mention Loans (Grade 5) [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	400	855
Classified Loans (Grades 6,7 and 8) [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	61,020	75,380
Covered loans	19,081	20,613
Total loans	80,101	95,993
Classified Loans (Grades 6,7 and 8) [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	671	2,231
Classified Loans (Grades 6,7 and 8) [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	2,250	4,331
Classified Loans (Grades 6,7 and 8) [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	591	506
Classified Loans (Grades 6,7 and 8) [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	8,467	12,909
Classified Loans (Grades 6,7 and 8) [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	32,459	34,474
Classified Loans (Grades 6,7 and 8) [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	4,144	4,533
Classified Loans (Grades 6,7 and 8) [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	11,959	15,748
Classified Loans (Grades 6,7 and 8) [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	479	648
Nonaccrual Loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	42,347	50,066
Covered loans	5,373	10,508
Total loans	47,720	60,574
Nonaccrual Loans [Member] | Commercial Unsecured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	470	187
Nonaccrual Loans [Member] | Commercial Secured [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	2,253	2,927
Nonaccrual Loans [Member] | Secured by Inventory and Accounts Receivable [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	84	454
Nonaccrual Loans [Member] | Real Estate construction, land development and other land loans [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	5,374	7,891
Nonaccrual Loans [Member] | Real estate residential, farmland and mutli-family [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	21,936	24,459
Nonaccrual Loans [Member] | Real estate home equity lines of credit [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	2,110	2,573
Nonaccrual Loans [Member] | Real estate commercial [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	9,762	11,070
Nonaccrual Loans [Member] | Consumer [Member]
Recorded investment in loans by credit quality indicators:
Non-covered loans	$ 358	$ 505

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Loans and Asset Quality Information (Summary of Nonperforming Assets) (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSET QUALITY DATA
Nonaccrual loans		$ 47,720	$ 60,574
Foreclosed real estate - non-covered		9,304	9,771	$ 11,705
Foreclosed real estate - covered		1,569	2,350	3,237
Total nonperforming assets		91,668	114,011	116,814
Non-covered nonperforming Assets [Member] [Member]
ASSET QUALITY DATA
Nonaccrual loans		42,347	50,066	53,620
Restructured loans - accruing		$ 29,250	$ 35,493	$ 31,501
Accruing loans > 90 days past due
Total nonperforming loans		$ 71,597	$ 85,559	$ 85,121
Foreclosed real estate - non-covered		9,304	9,771	11,705
Total nonperforming assets		80,901	95,330	96,826
Covered nonperforming Assets [Member]
ASSET QUALITY DATA
Nonaccrual loans	[1]	5,373	10,508	10,478
Restructured loans - accruing		$ 3,825	$ 5,823	$ 6,273
Accruing loans > 90 days past due
Total nonperforming loans		$ 9,198	$ 16,331	$ 16,751
Foreclosed real estate - covered		1,569	2,350	3,237
Total nonperforming assets		$ 10,767	$ 18,681	$ 19,988

[1] At September 30, 2015, December 31, 2014, and September 30, 2014, the contractual balance of the nonaccrual loans covered by FDIC loss share agreements was $10.1 million, $16.0 million, and $16.3 million, respectively.

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Fair Value (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Carrying amounts and estimated fair values of financial instruments:
Securities available for sale	$ 178,765	$ 158,018	$ 153,238
Securities held to maturity	162,858	182,411	57,601
Total loans, net of allowance	2,451,648	2,355,548	2,381,959
Accrued interest receivable	9,008	8,920	8,885
FDIC Indemnification Asset.	7,649	22,569	25,328
Bank-owned life insurance	56,557	55,421	44,996
Accrued interest payable	588	686	$ 695
Carrying Amount [Member]
Carrying amounts and estimated fair values of financial instruments:
Cash and due from banks, noninterest-bearing	52,788	81,068
Due from banks, interest-bearing	165,271	171,248
Federal funds sold	730	768
Securities available for sale	178,765	158,018
Securities held to maturity	160,048	178,687
Presold mortgages in process of settlement	3,150	6,019
Total loans, net of allowance	2,451,648	2,355,548
Accrued interest receivable	9,008	8,920
FDIC Indemnification Asset.	7,649	22,569
Bank-owned life insurance	56,557	55,421
Deposits	2,707,753	2,695,906
Borrowings	176,394	116,394
Accrued interest payable	588	686
Fair Value [Member]
Carrying amounts and estimated fair values of financial instruments:
Cash and due from banks, noninterest-bearing	52,788	81,068
Due from banks, interest-bearing	165,271	171,248
Federal funds sold	730	768
Securities available for sale	178,765	158,018
Securities held to maturity	162,858	182,411
Presold mortgages in process of settlement	3,150	6,019
Total loans, net of allowance	2,442,464	2,328,244
Accrued interest receivable	9,008	8,920
FDIC Indemnification Asset.	7,541	21,856
Bank-owned life insurance	56,557	55,421
Deposits	2,707,338	2,696,153
Borrowings	168,091	105,407
Accrued interest payable	588	686
Level in Fair Value Hierachy [Member]
Carrying amounts and estimated fair values of financial instruments:
Cash and due from banks, noninterest-bearing	1	1
Due from banks, interest-bearing	1	1
Federal funds sold	1	1
Securities available for sale	2	2
Securities held to maturity	2	2
Presold mortgages in process of settlement	1	1
Total loans, net of allowance	3	3
Accrued interest receivable	1	1
FDIC Indemnification Asset.	3	3
Bank-owned life insurance	1	1
Deposits	2	2
Borrowings	2	2
Accrued interest payable	$ 2	$ 2

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Loans and Asset Quality Information (Schedule of Information of Loans Modified in Troubled Debt Restructuring) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) N	Sep. 30, 2014 USD ($) N	Sep. 30, 2015 USD ($) N	Sep. 30, 2014 USD ($) N
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs | N	6	8	16	26
TDRs arising during period Pre-Modification	$ 1,236	$ 1,156	$ 2,004	$ 3,300
TDRs arising during period Post-Modification	$ 1,236	$ 1,138	$ 2,004	$ 3,251
Non-covered [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs | N	6	5	14	16
TDRs arising during period Pre-Modification	$ 1,236	$ 326	$ 1,865	$ 1,512
TDRs arising during period Post-Modification	$ 1,236	$ 326	$ 1,865	$ 1,512
Non-covered [Member] | Commercial Unsecured [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N			1
TDRs arising during period - Accruing Pre-Modification			$ 8
TDRs arising during period - Accruing Post-Modification			$ 8
Number of contracts, TDRs Nonaccrual | N
TDRs arising during period - Nonaccrual Pre-Modification
TDRs arising during period - Nonaccrual Post-Modification
Non-covered [Member] | Commercial Secured [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N
TDRs arising during period - Accruing Pre-Modification
TDRs arising during period - Accruing Post-Modification
Number of contracts, TDRs Nonaccrual | N		1		1
TDRs arising during period - Nonaccrual Pre-Modification		$ 15		$ 15
TDRs arising during period - Nonaccrual Post-Modification		$ 15		$ 15
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N
TDRs arising during period - Accruing Pre-Modification
TDRs arising during period - Accruing Post-Modification
Number of contracts, TDRs Nonaccrual | N
TDRs arising during period - Nonaccrual Pre-Modification
TDRs arising during period - Nonaccrual Post-Modification
Non-covered [Member] | Real Estate construction, land development and other land loans [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N	1		1
TDRs arising during period - Accruing Pre-Modification	$ 235		$ 235
TDRs arising during period - Accruing Post-Modification	$ 235		$ 235
Number of contracts, TDRs Nonaccrual | N	2		2
TDRs arising during period - Nonaccrual Pre-Modification	$ 495		$ 495
TDRs arising during period - Nonaccrual Post-Modification	$ 495		$ 495
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N	1	1	3	8
TDRs arising during period - Accruing Pre-Modification	$ 21	$ 36	$ 286	$ 784
TDRs arising during period - Accruing Post-Modification	$ 21	$ 36	$ 286	$ 784
Number of contracts, TDRs Nonaccrual | N	1	3	5	7
TDRs arising during period - Nonaccrual Pre-Modification	$ 95	$ 275	$ 400	$ 713
TDRs arising during period - Nonaccrual Post-Modification	$ 95	$ 275	$ 400	$ 713
Non-covered [Member] | Real estate home equity lines of credit [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N
TDRs arising during period - Accruing Pre-Modification
TDRs arising during period - Accruing Post-Modification
Number of contracts, TDRs Nonaccrual | N
TDRs arising during period - Nonaccrual Pre-Modification
TDRs arising during period - Nonaccrual Post-Modification
Non-covered [Member] | Real estate commercial [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N	1		2
TDRs arising during period - Accruing Pre-Modification	$ 390		$ 441
TDRs arising during period - Accruing Post-Modification	$ 390		$ 441
Number of contracts, TDRs Nonaccrual | N
TDRs arising during period - Nonaccrual Pre-Modification
TDRs arising during period - Nonaccrual Post-Modification
Non-covered [Member] | Consumer [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N
TDRs arising during period - Accruing Pre-Modification
TDRs arising during period - Accruing Post-Modification
Number of contracts, TDRs Nonaccrual | N
TDRs arising during period - Nonaccrual Pre-Modification
TDRs arising during period - Nonaccrual Post-Modification
Covered [Member]
Information related to loans modified in a troubled debt restructuring:
Number of contracts, TDRs Accruing | N		1	2	3
TDRs arising during period - Accruing Pre-Modification		$ 680	$ 139	$ 928
TDRs arising during period - Accruing Post-Modification		$ 667	$ 139	$ 912
Number of contracts, TDRs Nonaccrual | N		2		7
TDRs arising during period - Nonaccrual Pre-Modification		$ 150		$ 860
TDRs arising during period - Nonaccrual Post-Modification		$ 145		$ 827

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Loans and Asset Quality Information (Schedule of Covered Purchased Nonimpaired Loans) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Covered purchased nonimpaired loans:
Carrying amount of nonimpaired covered loans, beginning balance	$ 125,644	$ 207,167
Principal repayments	(25,051)	(50,183)
Transfers to foreclosed real estate	(1,129)	(5,061)
Transfers to non-covered loans due to expiration of loss-share agreement		(38,987)
Net loan (charge-offs) / recoveries	1,728	(3,301)
Accretion of loan discount	3,897	16,009
Balance, ending, carrying value	$ 105,089	$ 125,644

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Equity-Based Compensation Plans (Narrative) (Details) - USD ($)					3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2015	Apr. 10, 2015	Feb. 24, 2015	Feb. 11, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2012	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Stock based compensation expense					$ 150,000	$ 23,000		$ 554,000	$ 248,000
Stock based compensation, income tax benefit								216,000	$ 97,000
Proceeds from stock options exercised								32,000
Non-Employee Directors [Member]
Stock based compensation expense								129,000
Employee [Member]
Stock based compensation expense								$ 425,000
Common Stock [Member] | Non-Employee Directors [Member]
Equity grants								8,176	10,065
Equity grants in period (per director)								1,022	915
Fair value of equity grant, per share								$ 15.75	$ 17.60
Stock options [Member] | CEO [Member]
Grants in period (options)							75,000
Restricted Stock [Member] | Five employees [Member]
Grants in period (options)		14,425
Total compensation expense associated with senior executives grants		$ 249,000
Stock based compensation expense					20,700			$ 41,400
Vesting period		3 years
Restricted Stock [Member] | Three employees [Member]
Grants in period (options)	5,907
Total compensation expense associated with senior executives grants	$ 100,005				100,005			100,005
Stock based compensation expense					2,800
Vesting period	3 years
Restricted Stock [Member] | CEO [Member]
Grants in period (options)				15,657			40,000
Vesting period				2 years
Restricted Stock [Member] | Senior Executives [Member]
Grants in period (options)			14,882
Total compensation expense associated with senior executives grants			$ 258,000
Stock based compensation expense					23,300			69,800
Percent of bonus earned under the incentive plan in shares of restricted stock										50.00%
Restricted Stock [Member] | Eleven senior officers [Member]
Grants in period (options)			30,404
Total compensation expense associated with senior executives grants			$ 527,000
Stock based compensation expense					$ 80,500			$ 241,500
First Bancorp Plans [Member]
Exercise price range - floor								$ 14.35
Exercise prices range - ceiling								$ 22.04
Shares remaining available for grant	916,141				916,141			916,141
First Bancorp 2007 Equity Plan [Member]
Director equity grants granted, value								$ 16,000
First Bancorp 2007 Equity Plan [Member] | February 2014 Award [Member]
Total compensation expense associated with senior executives grants				$ 278,200
Stock based compensation expense						$ 23,200			$ 69,600

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Deferred Loan Costs (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Deferred Loan Costs [Abstract]
Net deferred loan costs	$ 765,000	$ 946,000	$ 730,000

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Shareholders' Equity Transactions (Narrative) (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 25, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014
Preferred stock redeemed				$ (32,000,000)
Net proceeds from the sale of preferred and common stock						$ 33,800,000
Preferred stock dividends		$ 137,000	$ 217,000	$ 566,000	$ 651,000
Small Business Lending Fund [Member]
Stock issued							$ 63,500,000
Stock issued, shares							63,500
Liquidation value of shares							$ 1,000
Preferred stock dividend rate after five years							9.00%
Threshold for qualified community banks							$ 10,000,000,000
Small Business Lending Fund [Member] | Minimum [Member]
Preferred stock dividend rate				1.00%
Small Business Lending Fund [Member] | Maximum [Member]
Preferred stock dividend rate				5.00%
Series C Preferred Stock [Member]
Stock issued, shares						728,706
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series B issued & outstanding: 0, 63,500, and 63,500 shares Series C, convertible, issued & outstanding: 0, 728,706, and 728,706 shares		$ 7,287,000	$ 7,287,000	$ 7,287,000	$ 7,287,000			$ 7,287,000
Preferred stock, shares outstanding		728,706	728,706	728,706	728,706			728,706
Stock sold price per share						$ 10.00
Preferred stock dividends		$ 58,000	$ 58,000	$ 175,000	$ 175,000
Series B Preferred Stock [Member]
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series B issued & outstanding: 0, 63,500, and 63,500 shares Series C, convertible, issued & outstanding: 0, 728,706, and 728,706 shares		$ 31,500,000	$ 63,500,000	$ 31,500,000	$ 63,500,000			$ 63,500,000
Preferred stock, shares outstanding		31,500	63,500	31,500	63,500			63,500
Preferred stock dividends		$ 79,000	$ 159,000	$ 391,000	$ 476,000
Series B Preferred Stock [Member] | Small Business Lending Fund [Member]
Preferred stock redeemed	$ 32,000,000
Preferred stock redeemed, shares	32,000
Liquidation value of shares	$ 1,000
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series B issued & outstanding: 0, 63,500, and 63,500 shares Series C, convertible, issued & outstanding: 0, 728,706, and 728,706 shares	$ 31,500,000
Preferred stock, shares outstanding	31,500
Common Stock [Member]
Stock issued, shares						2,656,294

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Common Share [Abstract]

Schedule of reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share

	For the Three Months Ended September 30,
	2015						2014
($ in thousands except per    share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	6,868		19,781,789	$	0.35	$	5,362		19,705,514	$	0.27
Effect of Dilutive Securities		58		731,170				58		732,225
Diluted EPS per common share	$	6,926		20,512,959	$	0.34	$	5,420		20,437,739	$	0.27

	For the Nine Months Ended September 30,
	2015						2014
($ in thousands except per     share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	19,671		19,760,807	$	1.00	$	17,250		19,697,426	$	0.88
Effect of Dilutive Securities		175		731,166				175		734,410
Diluted EPS per common share	$	19,846		20,491,973	$	0.97	$	17,425		20,431,836	$	0.85

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Loans and Asset Quality Information (Schedule of Analysis of Payment Status of Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Analysis of the payment status of loans
Nonaccrual loans	$ 47,720	$ 60,574
Current	2,415,609	2,303,372
Total loans	2,375,094	2,268,580	$ 2,292,841
Total Covered Loans - Carrying Value	106,609	127,594	133,249
Loans	2,481,703	2,396,174	2,426,090
30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	13,942	24,849
60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	3,667	6,433
Commercial Unsecured [Member]
Analysis of the payment status of loans
Nonaccrual loans	492	188
Commercial Secured [Member]
Analysis of the payment status of loans
Nonaccrual loans	2,253	2,927
Secured by Inventory and Accounts Receivable [Member]
Analysis of the payment status of loans
Nonaccrual loans	107	557
Real Estate construction, land development and other land loans [Member]
Analysis of the payment status of loans
Nonaccrual loans	5,434	9,031
Real estate residential, farmland and mutli-family [Member]
Analysis of the payment status of loans
Nonaccrual loans	25,206	32,244
Real estate home equity lines of credit [Member]
Analysis of the payment status of loans
Nonaccrual loans	2,472	2,851
Real estate commercial [Member]
Analysis of the payment status of loans
Nonaccrual loans	11,398	12,271
Consumer [Member]
Analysis of the payment status of loans
Nonaccrual loans	358	505
Non-covered [Member]
Analysis of the payment status of loans
Nonaccrual loans	42,347	50,066
Current	2,315,464	2,191,635
Total loans	2,375,094	2,268,580	2,292,841
Non-covered [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	13,602	20,464
Non-covered [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	2,916	5,469
Non-covered [Member] | Commercial Unsecured [Member]
Analysis of the payment status of loans
Nonaccrual loans	470	187
Current	49,325	36,871
Total loans	50,529	37,284
Non-covered [Member] | Commercial Unsecured [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	$ 734	191
Non-covered [Member] | Commercial Unsecured [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due		35
Non-covered [Member] | Commercial Secured [Member]
Analysis of the payment status of loans
Nonaccrual loans	$ 2,253	2,927
Current	114,989	102,671
Total loans	118,087	106,974
Non-covered [Member] | Commercial Secured [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	772	1,003
Non-covered [Member] | Commercial Secured [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	73	373
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Analysis of the payment status of loans
Nonaccrual loans	84	454
Current	33,177	21,761
Total loans	33,627	22,470
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	$ 366	30
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due		225
Non-covered [Member] | Real Estate construction, land development and other land loans [Member]
Analysis of the payment status of loans
Nonaccrual loans	$ 5,374	7,891
Current	269,002	247,535
Total loans	275,404	257,515
Non-covered [Member] | Real Estate construction, land development and other land loans [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	938	1,950
Non-covered [Member] | Real Estate construction, land development and other land loans [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	90	139
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member]
Analysis of the payment status of loans
Nonaccrual loans	21,936	24,459
Current	822,084	807,884
Total loans	851,372	846,833
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	5,404	11,272
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	1,948	3,218
Non-covered [Member] | Real estate home equity lines of credit [Member]
Analysis of the payment status of loans
Nonaccrual loans	2,110	2,573
Current	199,180	194,067
Total loans	202,618	198,577
Non-covered [Member] | Real estate home equity lines of credit [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	996	1,585
Non-covered [Member] | Real estate home equity lines of credit [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	332	352
Non-covered [Member] | Real estate commercial [Member]
Analysis of the payment status of loans
Nonaccrual loans	9,762	11,070
Current	785,182	738,981
Total loans	799,191	754,785
Non-covered [Member] | Real estate commercial [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	4,013	3,738
Non-covered [Member] | Real estate commercial [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	234	996
Non-covered [Member] | Consumer [Member]
Analysis of the payment status of loans
Nonaccrual loans	358	505
Current	42,525	41,865
Total loans	43,501	43,196
Non-covered [Member] | Consumer [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	379	695
Non-covered [Member] | Consumer [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	239	131
Covered [Member]
Analysis of the payment status of loans
Nonaccrual loans	5,373	10,508
Current	100,145	111,737
Total Covered Loans - Carrying Value	106,609	127,594	$ 133,249
Covered [Member] | 30-59 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	340	4,385
Covered [Member] | 60-89 Days past due [Member]
Analysis of the payment status of loans
Financing receivable, past due	751	964
Covered [Member] | Commercial Unsecured [Member]
Analysis of the payment status of loans
Nonaccrual loans	$ 22	$ 1
Covered [Member] | Commercial Secured [Member]
Analysis of the payment status of loans
Nonaccrual loans
Covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Analysis of the payment status of loans
Nonaccrual loans	$ 23	$ 103
Covered [Member] | Real Estate construction, land development and other land loans [Member]
Analysis of the payment status of loans
Nonaccrual loans	60	1,140
Covered [Member] | Real estate residential, farmland and mutli-family [Member]
Analysis of the payment status of loans
Nonaccrual loans	3,270	7,785
Covered [Member] | Real estate home equity lines of credit [Member]
Analysis of the payment status of loans
Nonaccrual loans	362	278
Covered [Member] | Real estate commercial [Member]
Analysis of the payment status of loans
Nonaccrual loans	$ 1,636	$ 1,201
Covered [Member] | Consumer [Member]
Analysis of the payment status of loans
Nonaccrual loans

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Loans and Asset Quality Information (Narrative) (Details) - USD ($)		9 Months Ended		12 Months Ended
	Jul. 02, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Total Covered Loans - Carrying Value		$ 106,609,000	$ 133,249,000	$ 127,594,000
Foreclosed real estate - covered		1,569,000	3,237,000	2,350,000
Nonaccrual loans		47,720,000		60,574,000
Accretion of loan discount		$ 3,897,000		16,009,000
Percentage of loan discount accretion		80.00%
Payments that exceeded the initial carrying amount on purchased impaired loans		$ 56,000	179,000
Contractual balance of nonaccrual loans		10,100,000	$ 16,300,000	16,000,000
Purchased Accruing Loans [Member]
Loan discount on loans		14,151,000
Purchased Nonaccruing Loans [Member]
Loan discount on loans		2,043,000
Covered Loss Sharing Subsequent Change to Noncovered [Member]
Total Covered Loans - Carrying Value	$ 39,700,000
Foreclosed real estate - covered	3,000,000
Nonaccrual loans	9,700,000
Restructured loans - accruing	2,100,000
Transfer of allowance of loan losses from covered to non-covered	1,700,000
Total loans transferred to non-covered status	$ 39,700,000
Residential mortgage loans [Member]
Total Covered Loans - Carrying Value		78,260,000		$ 89,770,000
Nonaccrual loans in process of foreclosure		$ 3,000,000

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Earnings Per Common Share (Reconciliation Of Numerators And Denominators ) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic EPS
Net income available to common shareholders	$ 6,868	$ 5,362	$ 19,671	$ 17,250
Shares (denominator)	19,781,789	19,705,514	19,760,807	19,697,426
Basic EPS	$ 0.35	$ 0.27	$ 1.00	$ 0.88
Effect of Dilutive Securities Income (numerator)	$ 58	$ 58	$ 175	$ 175
Effect of Dilutive Securities Shares (denominator)	731,170	732,225	731,166	734,410
Diluted EPS per common share
Income (numerator)	$ 6,926	$ 5,420	$ 19,846	$ 17,425
Shares (denominator)	20,512,959	20,437,739	20,491,973	20,431,836
Diluted EPS per common share	$ 0.34	$ 0.27	$ 0.97	$ 0.85

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Loans and Asset Quality Information (Schedule of Activity in Allowance for Loan Losses for Covered Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Provisions	$ (1,414)	$ 1,485	$ (737)	$ 8,719
Loans receivable:
Ending balance - total	106,609	133,249	106,609	133,249	$ 127,594
Covered [Member]
Beginning balance	1,935	3,830	2,281	4,242	4,242
Charge-offs	(84)	(195)	(1,200)	(5,865)	(6,948)
Recoveries	1,730	463	2,928	3,010	3,616
Transferred to non-covered		(1,737)		(1,737)	(1,737)
Provisions	(1,681)	206	(2,109)	2,917	3,108
Ending balance	1,900	2,567	1,900	2,567	2,281
Ending balances: Allowance for loan losses
Individually evaluated for impairment	466	1,537	466	1,537	1,161
Collectively evaluated for impairment	1,391	1,003	1,391	1,003	1,046
Loans receivable:
Ending balance - total	106,609	133,249	106,609	133,249	127,594
Ending balances: Loans
Individually evaluated for impairment	5,197	11,258	5,197	11,258	11,484
Collectively evaluated for impairment	99,892	119,953	99,892	119,953	114,160
Covered [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance			74
Ending balance	43	27	43	27	74
Ending balances: Loans
Financing Receivable, Net	$ 1,520	$ 2,038	$ 1,520	$ 2,038	$ 1,950

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Fair Value (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Fair Value [Abstract]
Increase (decrease) in fair value of securities available for sale	$ (153,000)	$ 218,000
Tax benefit (expense) of increase (decrease) in the fair value of securities available for sale	$ 60,000	$ (85,000)

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Goodwill and Other Intangible Assets (Summary of the Gross Carrying Amount and Accumulated Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Amortizable intangible assets:
Customer lists	$ 678	$ 678	$ 678
Customer Lists Accumulated Amortization	539	505	495
Core deposit premiums	8,560	8,560	8,560
Core Deposit premiums accumulated amortization	7,183	6,675	6,491
Gross Carrying Amount	9,238	9,238	9,238
Accumulated Amortization	7,722	7,180	6,986
Unamortizable intangible assets:
Goodwill	$ 65,835	$ 65,835	$ 65,835

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Loans and Asset Quality Information (Schedule of Applied Cost Recovery Method of Purchased Impaired Loans) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Purchased impaired loans (substantially all of which are covered loans)
Balance, beginning, carrying value	$ 2,597	$ 3,142
Change due to payments received	(385)	(826)
Transfer to foreclosed real estate	$ (95)
Change due to loan charge-off		(31)
Other		312
Balance, ending, carrying value	$ 2,117	2,597
Contractual Principal Receivable [Member]
Purchased impaired loans (substantially all of which are covered loans)
Balance, beginning, contractual principal	5,859	6,263
Change due to payments received	(330)	(599)
Transfer to foreclosed real estate	(431)
Change due to loan charge-off		(2)
Other	(3)	197
Balance, ending, contractual principal	5,095	5,859
Fair Value Adjustment Write Down [Member]
Purchased impaired loans (substantially all of which are covered loans)
Balance, beginning, FMV	3,262	3,121
Change due to payments received	55	227
Transfer to foreclosed real estate	(336)
Change due to loan charge-off		29
Other	(3)	(115)
Balance, ending, FMV	$ 2,978	$ 3,262

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Basis of Presentation

9 Months Ended

Sep. 30, 2015

Basis of Presentation [Abstract]

Basis of Presentation

Note 1 - Basis of Presentation

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of September 30, 2015 and 2014 and the consolidated results of operations and consolidated cash flows for the periods ended September 30, 2015and 2014.  All such adjustments were of a normal, recurring nature.  Reference is made to the 2014 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.  The results of operations for the periods ended September 30, 2015 and 2014 are not necessarily indicative of the results to be expected for the full year.  The Company has evaluated all subsequent events through the date the financial statements were issued.

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Goodwill and Other Intangible Assets (Schedule of the Estimated Amortization Expense) (Details) $ in Thousands	Sep. 30, 2015 USD ($)
The estimated amortization expense for five succeeding years:
October 1 to December 31, 2015	$ 180
2016	654
2017	404
2018	129
2019	122
Thereafter	27
Total	$ 1,516

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Loans and Asset Quality Information (Summary of Major Categories of Total Loans Outstanding) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
All loans (non-covered and covered):
Amount of loans	$ 2,480,938	$ 2,395,228	$ 2,425,360
Percentage of Loans	100.00%	100.00%	100.00%
Unamortized net deferred loan costs	$ 765	$ 946	$ 730
Loans, total	2,481,703	2,396,174	2,426,090
Commercial, financial and agricultural [Member]
All loans (non-covered and covered):
Amount of loans	$ 199,630	$ 160,878	$ 165,215
Percentage of Loans	8.00%	7.00%	7.00%
Real Estate construction, land development and other land loans [Member]
All loans (non-covered and covered):
Amount of loans	$ 294,426	$ 288,148	$ 298,091
Percentage of Loans	12.00%	12.00%	13.00%
Real estate mortgage residential (1-4 family) first mortgages [Member]
All loans (non-covered and covered):
Amount of loans	$ 770,691	$ 789,871	$ 806,954
Percentage of Loans	31.00%	33.00%	33.00%
Real estate mortgage home equity loans/lines of credit [Member]
All loans (non-covered and covered):
Amount of loans	$ 224,639	$ 223,500	$ 224,553
Percentage of Loans	9.00%	9.00%	9.00%
Real estate mortgage commercial and other [Member]
All loans (non-covered and covered):
Amount of loans	$ 944,432	$ 882,127	$ 879,122
Percentage of Loans	38.00%	37.00%	36.00%
Installment loans to individual [Member]
All loans (non-covered and covered):
Amount of loans	$ 47,120	$ 50,704	$ 51,425
Percentage of Loans	2.00%	2.00%	2.00%

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill And Other Intangible Assets [Abstract]

Summary of the gross carrying amount and accumulated amortization of amortizable intangible assets and the carrying amount of unamortized intangible assets

	September 30, 2015				December 31, 2014				September 30, 2014
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	678		539		678		505		678		495
Core deposit premiums		8,560		7,183		8,560		6,675		8,560		6,491
Total	$	9,238		7,722		9,238		7,180		9,238		6,986
Unamortizable intangible assets:
Goodwill	$	65,835				65,835				65,835

Schedule of the estimated amortization expense for the five succeeding fiscal years

($ in thousands)	Estimated Amortization Expense
October 1 to December 31, 2015	$	180
2016		654
2017		404
2018		129
2019		122
Thereafter		27
Total	$	1,516

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FDIC Indemnification Asset (Tables)

9 Months Ended

Sep. 30, 2015

Fdic Indemnification Asset [Abstract]

Schedule of the FDIC indemnification asset components

($ in thousands)	September 30, 2015			December 31, 2014		September 30, 2014
Receivable (payable) related to loss claims incurred (recoveries), not yet reimbursed, net	$	(2,427	)		6,899		5,957
Receivable related to estimated future claims on loans		9,522			14,933		17,932
Receivable related to estimated future claims on foreclosed real estate		554			737		1,439
FDIC indemnification asset	$	7,649			22,569		25,328

Rollforward of the FDIC indemnification asset

($ in thousands)
Balance at December 31, 2014	$	22,569
Decrease related to favorable changes in loss estimates		(2,526	)
Increase related to reimbursable expenses		1,031
Cash received		(8,758	)
Decrease related to accretion of loan discount		(4,558	)
Decrease related to settlement of disputed claims		(406	)
Other		297
Balance at September 30, 2015	$	7,649

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Loans and Asset Quality Information (Schedule of Accruing Restructured Loans Defaulted in Period) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) N	Sep. 30, 2014 USD ($) N	Sep. 30, 2015 USD ($) N	Sep. 30, 2014 USD ($) N
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default	1		3	2
Subsequently defaulted - Recorded Investment | $	$ 152		$ 193	$ 76
Non-covered [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default	1		3	2
Subsequently defaulted - Recorded Investment | $	$ 152		$ 193	$ 76
Non-covered [Member] | Commercial Unsecured [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default			1
Subsequently defaulted - Recorded Investment | $			$ 7
Non-covered [Member] | Real Estate construction, land development and other land loans [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default				1
Subsequently defaulted - Recorded Investment | $				$ 5
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default	1		2
Subsequently defaulted - Recorded Investment | $	$ 152		$ 186
Non-covered [Member] | Real estate commercial [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default				1
Subsequently defaulted - Recorded Investment | $				$ 71
Covered [Member]
Accruing restructured loans that defaulted in the period:
Number of Contracts - Subsequent Default
Subsequently defaulted - Recorded Investment | $

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Loans and Asset Quality Information (Summary of Major Categories of Non-Covered Loans Outstanding) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Non-covered loans:
Total loans	$ 2,374,329	$ 2,267,634	$ 2,292,111
Percentage of Loans	100.00%	100.00%	100.00%
Unamortized net deferred loan costs	$ 765	$ 946	$ 730
Loans - non-covered	2,375,094	2,268,580	2,292,841
Commercial, financial and agricultural [Member]
Non-covered loans:
Total loans	$ 198,624	$ 159,195	$ 162,994
Percentage of Loans	9.00%	7.00%	7.00%
Real Estate construction, land development and other land loans [Member]
Non-covered loans:
Total loans	$ 290,465	$ 282,604	$ 292,401
Percentage of Loans	12.00%	13.00%	13.00%
Real estate mortgage residential (1-4 family) first mortgages [Member]
Non-covered loans:
Total loans	$ 692,431	$ 700,101	$ 714,879
Percentage of Loans	29.00%	31.00%	31.00%
Real estate mortgage home equity loans/lines of credit [Member]
Non-covered loans:
Total loans	$ 213,435	$ 210,697	$ 211,477
Percentage of Loans	9.00%	9.00%	9.00%
Real estate mortgage commercial and other [Member]
Non-covered loans:
Total loans	$ 932,254	$ 864,333	$ 858,935
Percentage of Loans	39.00%	38.00%	38.00%
Installment loans to individual [Member]
Non-covered loans:
Total loans	$ 47,120	$ 50,704	$ 51,425
Percentage of Loans	2.00%	2.00%	2.00%

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Pension Plans (Tables)

9 Months Ended

Sep. 30, 2015

Pension Plans [Abstract]

Schedule of the components of pension (income) expense

	For the Three Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost - benefits earned during the period	$	—			—			36			69			36			69
Interest cost		341			365			52			53			393			418
Expected return on plan assets		(713	)		(695	)		—			—			(713	)		(695	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(16	)		(56	)		(16	)		(56	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(372	)		(330	)		72			66			(300	)		(264	)

	For the Nine Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost - benefits earned during the period	$	—			—			164			204			164			204
Interest cost		1,023			1,096			154			159			1,177			1,255
Expected return on plan assets		(2,133	)		(2,084	)		—			—			(2,133	)		(2,084	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(63	)		(166	)		(63	)		(166	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(1,110	)		(988	)		255			197			(855	)		(791	)

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Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Comprehensive Income [Abstract]

Schedule of accumulated other comprehensive income (loss)

($ in thousands)	September 30, 2015			December 31, 2014			September 30, 2014
Unrealized gain (loss) on securities available for sale	$	(843	)		(691	)		(1,803	)
Deferred tax asset (liability)		329			270			704
Net unrealized gain (loss) on securities available for sale		(514	)		(421	)		(1,099	)
Additional pension asset (liability)		(320	)		(257	)		4,969
Deferred tax asset (liability)		124			100			(1,938	)
Net additional pension asset (liability)		(196	)		(157	)		3,031
Total accumulated other comprehensive income (loss)	$	(710	)		(578	)		1,932

Schedule of changes in accumulated other comprehensive income (loss)

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2015	$	(421	)		(157	)		(578	)
Other comprehensive income (loss) before reclassifications		(94	)		—			(94	)
Amounts reclassified from accumulated other comprehensive income		1			(39	)		(38	)
Net current-period other comprehensive income (loss)		(93	)		(39	)		(132	)
Ending balance at September 30, 2015	$	(514	)		(196	)		(710	)

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2014	$	(1,232	)		3,132			1,900
Other comprehensive income (loss) before reclassifications		613			—			613
Amounts reclassified from accumulated other comprehensive income		(480	)		(101	)		(581	)
Net current-period other comprehensive income (loss)		133			(101	)		32
Ending balance at September 30, 2014	$	(1,099	)		3,031			1,932

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Cash Flows From Operating Activities
Net income	$ 7,005	$ 5,579	$ 20,237	$ 17,901
Reconciliation of net income to net cash provided by operating activities:
Provision (reversal) for loan losses	(1,414)	$ 1,485	(737)	8,719
Net security premium amortization			2,380	1,416
Purchase accounting accretion and amortization, net			2,265	(7,261)
Foreclosed property losses and write-downs, net			1,522	3,981
Loss (gain) on securities available for sale	1		1	(786)
Other losses			241	282
Decrease in net deferred loan costs			181	198
Depreciation of premises and equipment			$ 3,375	3,477
Branch consolidation expense				925
Stock-based compensation expense			$ 554	248
Amortization of intangible assets	181	$ 194	541	582
Origination of presold mortgages in process of settlement			(76,728)	(75,775)
Proceeds from sales of presold mortgages in process of settlement			79,600	75,568
Decrease (increase) in accrued interest receivable			(88)	764
Decrease (increase) in other assets			(990)	7,302
Decrease in accrued interest payable			(98)	(184)
Decrease in other liabilities			(667)	(429)
Net cash provided by operating activities			31,589	36,928
Cash Flows From Investing Activities
Purchases of securities available for sale			(83,313)	$ (54,258)
Purchases of securities held to maturity			$ (2,003)
Proceeds from sales of securities available for sale				$ 47,473
Proceeds from maturities/issuer calls of securities available for sale			$ 61,426	$ 22,456
Proceeds from maturities/issuer calls of securities held to maturity			19,246
Purchases of Federal Reserve Bank stock and Federal Home Loan Bank stock, net			(9,597)	$ (2,122)
Net decrease (increase) in loans			(98,347)	27,468
Proceeds from FDIC loss share agreements			8,758	16,810
Proceeds from sales of foreclosed real estate			6,426	27,908
Purchases of premises and equipment			(3,828)	(3,278)
Proceeds from sale of premises and equipment			847	1,232
Net cash provided (used) by investing activities			(100,385)	83,689
Cash Flows From Financing Activities
Net increase (decrease) in deposits			11,847	(72,000)
Net increase in borrowings			60,000	70,000
Cash dividends paid - common stock			(4,732)	(4,726)
Cash dividends paid - preferred stock			(646)	$ (651)
Redemption of preferred stock			(32,000)
Proceeds from stock option exercises			32
Net cash provided (used) by financing activities			34,501	$ (7,377)
Increase (decrease) in cash and cash equivalents			(34,295)	113,240
Cash and cash equivalents, beginning of period			253,084	223,274	$ 223,274
Cash and cash equivalents, end of period	$ 218,789	$ 336,514	218,789	336,514	$ 253,084
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for interest			5,252	6,503
Cash paid during the period for income taxes			11,139	3,009
Non-cash transactions:
Unrealized gain (loss) on securities available for sale, net of taxes			(94)	133
Foreclosed loans transferred to other real estate			$ 6,700	$ 10,083

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value [Abstract]

Financial instruments that were measured at fair value on a recurring and nonrecurring basis

($ in thousands)
Description of Financial Instruments	Fair Value at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,850		––		27,850		—
Mortgage-backed securities		125,836		––		125,836		––
Corporate bonds		24,948		––		24,948		––
Equity securities		131		––		131		––
Total available for sale securities	$	178,765		––		178,765		––
Nonrecurring
Impaired loans – covered	$	2,466		—		—		2,466
Impaired loans – non-covered		18,415		––		––		18,415
Foreclosed real estate – covered		1,569		—		––		1,569
Foreclosed real estate – non-covered		9,304		––		––		9,304

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,521		––		27,521		—
Mortgage-backed securities		129,510		––		129,510		––
Corporate bonds		865		––		865		––
Equity securities		122		––		122		––
Total available for sale securities	$	158,018		––		158,018		––
Nonrecurring
Impaired loans – covered	$	3,991		—		—		3,991
Impaired loans – non-covered		18,035		––		––		18,035
Foreclosed real estate – covered		2,350		—		––		2,350
Foreclosed real estate – non-covered		9,771		––		––		9,771

Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis

($ in thousands)
Description	Fair Value at September 30, 2015		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	2,466	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,415	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		1,569	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,304	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

($ in thousands)
Description	Fair Value at December 31, 2014		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	3,991	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,035	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		2,350	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,771	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

Schedule of the carrying amounts and estimated fair values of financial instruments

		September 30, 2015				December 31, 2014
($ 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	$	52,788		52,788		81,068		81,068
Due from banks, interest-bearing	Level 1		165,271		165,271		171,248		171,248
Federal funds sold	Level 1		730		730		768		768
Securities available for sale	Level 2		178,765		178,765		158,018		158,018
Securities held to maturity	Level 2		160,048		162,858		178,687		182,411
Presold mortgages in process of settlement	Level 1		3,150		3,150		6,019		6,019
Total loans, net of allowance	Level 3		2,451,648		2,442,464		2,355,548		2,328,244
Accrued interest receivable	Level 1		9,008		9,008		8,920		8,920
FDIC indemnification asset	Level 3		7,649		7,541		22,569		21,856
Bank-owned life insurance	Level 1		56,557		56,557		55,421		55,421
Deposits	Level 2		2,707,753		2,707,338		2,695,906		2,696,153
Borrowings	Level 2		176,394		168,091		116,394		105,407
Accrued interest payable	Level 2		588		588		686		686

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Securities (Schedule of Information Regarding Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Securities in an Unrealized Loss Position for Less than 12 Months
Total temporarily impaired securities Fair Value	$ 164,154	$ 75,474
Total temporarily impaired securities Unrealized Losses	925	329
Securities in an Unrealized Loss Position for More than 12 Months
Total temporarily impaired securities Fair Value	35,531	37,392
Total temporarily impaired securities Unrealized Losses	1,013	1,299
Total temporarily impaired securities Fair Value	199,685	112,866
Total temporarily impaired securities Unrealized Losses	$ 1,938	1,628
Government-sponsored enterprises securities [Member]
Securities in an Unrealized Loss Position for Less than 12 Months
AFS Fair Value		5,489
AFS Unrealized Losses		11
Securities in an Unrealized Loss Position for More than 12 Months
AFS Fair Value	$ 2,991	2,953
AFS Unrealized Losses	8	47
Total temporarily impaired securities Fair Value	2,991	8,442
Total temporarily impaired securities Unrealized Losses	8	58
Mortgage-backed securities [Member]
Securities in an Unrealized Loss Position for Less than 12 Months
AFS Fair Value	141,334	69,985
AFS Unrealized Losses	685	318
Securities in an Unrealized Loss Position for More than 12 Months
AFS Fair Value	31,578	33,557
AFS Unrealized Losses	934	1,104
Total temporarily impaired securities Fair Value	172,912	103,542
Total temporarily impaired securities Unrealized Losses	1,619	$ 1,422
Corporate bonds [Member]
Securities in an Unrealized Loss Position for Less than 12 Months
AFS Fair Value	21,991
AFS Unrealized Losses	219
Securities in an Unrealized Loss Position for More than 12 Months
AFS Fair Value	940	$ 865
AFS Unrealized Losses	60	135
Total temporarily impaired securities Fair Value	22,931	865
Total temporarily impaired securities Unrealized Losses	$ 279	$ 135
Equity securities [Member]
Securities in an Unrealized Loss Position for Less than 12 Months
AFS Fair Value
AFS Unrealized Losses
Securities in an Unrealized Loss Position for More than 12 Months
AFS Fair Value	$ 22	$ 17
AFS Unrealized Losses	11	13
Total temporarily impaired securities Fair Value	22	17
Total temporarily impaired securities Unrealized Losses	11	$ 13
States and local governments [Member]
Securities in an Unrealized Loss Position for Less than 12 Months
HTM Fair Value	829
HTM Unrealized Losses	$ 21
Securities in an Unrealized Loss Position for More than 12 Months
HTM Fair Value
HTM Unrealized Losses
Total temporarily impaired securities Fair Value	$ 829
Total temporarily impaired securities Unrealized Losses	$ 21

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Loans and Asset Quality Information (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	$ 29,831	$ 42,069
Imapired loans with no related allowance - Unpaid Principal Balance	39,864	51,585
Impaired loans with no related allowance - Average Recorded Investment	35,975	43,613
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	23,408	25,426
Impaired loans with allowance - Unpaid Principal Balance	24,240	28,504
Impaired loans with related allowance - Related Allowance	2,918	3,706
Impaired loans with related allowance - Average Recorded Investment	23,716	31,557
Non-covered [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	26,089	33,972
Imapired loans with no related allowance - Unpaid Principal Balance	32,484	39,504
Impaired loans with no related allowance - Average Recorded Investment	30,274	26,627
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	20,433	20,206
Impaired loans with allowance - Unpaid Principal Balance	20,972	22,785
Impaired loans with related allowance - Related Allowance	2,409	2,477
Impaired loans with related allowance - Average Recorded Investment	19,842	23,044
Non-covered [Member] | Commercial Unsecured [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	271	33
Imapired loans with no related allowance - Unpaid Principal Balance	311	35
Impaired loans with no related allowance - Average Recorded Investment	102	20
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	148	140
Impaired loans with allowance - Unpaid Principal Balance	155	143
Impaired loans with related allowance - Related Allowance	43	47
Impaired loans with related allowance - Average Recorded Investment	139	142
Non-covered [Member] | Commercial Secured [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	92	5
Imapired loans with no related allowance - Unpaid Principal Balance	95	6
Impaired loans with no related allowance - Average Recorded Investment	56	95
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	475	606
Impaired loans with allowance - Unpaid Principal Balance	496	612
Impaired loans with related allowance - Related Allowance	92	164
Impaired loans with related allowance - Average Recorded Investment	$ 538	$ 550
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment
Imapired loans with no related allowance - Unpaid Principal Balance
Impaired loans with no related allowance - Average Recorded Investment
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment
Impaired loans with allowance - Unpaid Principal Balance
Impaired loans with related allowance - Related Allowance
Impaired loans with related allowance - Average Recorded Investment		$ 15
Non-covered [Member] | Real Estate construction, land development and other land loans [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	$ 3,729	6,877
Imapired loans with no related allowance - Unpaid Principal Balance	7,090	7,944
Impaired loans with no related allowance - Average Recorded Investment	4,716	6,430
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	956	1,114
Impaired loans with allowance - Unpaid Principal Balance	1,002	3,243
Impaired loans with related allowance - Related Allowance	250	415
Impaired loans with related allowance - Average Recorded Investment	1,363	1,487
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	9,466	9,165
Imapired loans with no related allowance - Unpaid Principal Balance	10,839	10,225
Impaired loans with no related allowance - Average Recorded Investment	9,548	7,776
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	14,133	14,845
Impaired loans with allowance - Unpaid Principal Balance	14,526	15,257
Impaired loans with related allowance - Related Allowance	1,575	1,686
Impaired loans with related allowance - Average Recorded Investment	$ 14,194	14,418
Non-covered [Member] | Real estate home equity lines of credit [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment		476
Imapired loans with no related allowance - Unpaid Principal Balance		498
Impaired loans with no related allowance - Average Recorded Investment	$ 119	$ 388
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment
Impaired loans with allowance - Unpaid Principal Balance
Impaired loans with related allowance - Related Allowance
Impaired loans with related allowance - Average Recorded Investment		$ 4
Non-covered [Member] | Real estate commercial [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	$ 12,531	17,409
Imapired loans with no related allowance - Unpaid Principal Balance	14,149	20,786
Impaired loans with no related allowance - Average Recorded Investment	15,731	11,911
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	4,721	3,501
Impaired loans with allowance - Unpaid Principal Balance	4,793	3,530
Impaired loans with related allowance - Related Allowance	449	165
Impaired loans with related allowance - Average Recorded Investment	$ 3,608	6,420
Non-covered [Member] | Consumer [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment		7
Imapired loans with no related allowance - Unpaid Principal Balance		10
Impaired loans with no related allowance - Average Recorded Investment	$ 2	$ 7
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment
Impaired loans with allowance - Unpaid Principal Balance
Impaired loans with related allowance - Related Allowance
Impaired loans with related allowance - Average Recorded Investment		$ 8
Covered [Member]
Loans with no related allowance recorded:
Impaired loans with no related allowance - Recorded Investment	$ 3,742	8,097
Imapired loans with no related allowance - Unpaid Principal Balance	7,380	12,081
Impaired loans with no related allowance - Average Recorded Investment	5,701	16,986
Loans with an allowance recorded:
Impaired loans with allowance - Recorded Investment	2,975	5,220
Impaired loans with allowance - Unpaid Principal Balance	3,268	5,719
Impaired loans with related allowance - Related Allowance	509	1,229
Impaired loans with related allowance - Average Recorded Investment	$ 3,874	$ 8,513

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Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands			9 Months Ended
	Oct. 16, 2015	Jun. 25, 2015	Sep. 30, 2015	Dec. 31, 2011
Subsequent Event [Line Items]
Preferred stock redeemed			$ (32,000)
Small Business Lending Fund [Member]
Subsequent Event [Line Items]
Liquidation value of shares				$ 1,000
Series B Preferred Stock [Member] | Small Business Lending Fund [Member]
Subsequent Event [Line Items]
Preferred stock redeemed		$ 32,000
Preferred stock redeemed, shares		32,000
Liquidation value of shares		$ 1,000
Subsequent Event [Member] | Series B Preferred Stock [Member] | Small Business Lending Fund [Member]
Subsequent Event [Line Items]
Preferred stock redeemed	$ 31,500
Preferred stock redeemed, shares	31,500
Liquidation value of shares	$ 1,000

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS
Cash and due from banks, noninterest-bearing	$ 52,788	$ 81,068	$ 84,128
Due from banks, interest-bearing	165,271	171,248	251,111
Federal funds sold	730	768	1,275
Total cash and cash equivalents	218,789	253,084	336,514
Securities available for sale	178,765	158,018	153,238
Securities held to maturity (fair values of $162,858, $182,411, and $57,601)	160,048	178,687	53,821
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage	3,150	6,019	5,761
Loans - non-covered	2,375,094	2,268,580	2,292,841
Loans - covered by FDIC loss share agreement	106,609	127,594	133,249
Total loans	2,481,703	2,396,174	2,426,090
Allowance for loan losses - non-covered	(28,155)	(38,345)	(41,564)
Allowance for loan losses - covered	(1,900)	(2,281)	(2,567)
Total allowance for loan losses	(30,055)	(40,626)	(44,131)
Net loans	2,451,648	2,355,548	2,381,959
Premises and equipment	74,839	75,113	74,871
Accrued interest receivable	9,008	8,920	8,885
FDIC indemnification asset	7,649	22,569	25,328
Goodwill	65,835	65,835	65,835
Other intangible assets	1,516	2,058	2,252
Foreclosed real estate - non-covered	9,304	9,771	11,705
Foreclosed real estate - covered	1,569	2,350	3,237
Bank-owned life insurance	56,557	55,421	44,996
Other assets	34,164	24,990	27,209
Total assets	3,272,841	3,218,383	3,195,611
LIABILITIES
Deposits: Noninterest bearing checking accounts	635,287	560,230	540,349
Interest bearing checking accounts	609,908	583,903	538,815
Money market accounts	584,490	551,002	548,832
Savings accounts	187,607	180,317	178,260
Time deposits of $100,000 or more	381,895	470,066	503,125
Other time deposits	308,566	350,388	369,631
Total deposits	2,707,753	2,695,906	2,679,012
Borrowings	176,394	116,394	116,394
Accrued interest payable	588	686	695
Other liabilities	16,932	17,698	14,695
Total liabilities	$ 2,901,667	$ 2,830,684	$ 2,810,796
Commitments and contingencies
SHAREHOLDERS' EQUITY
Common stock, no par value per share. Authorized: 40,000,000 shares Issued & outstanding: 19,785,314, 19,709,881, and 19,705,381 shares	$ 133,211	$ 132,532	$ 132,440
Retained earnings	199,886	184,958	179,656
Accumulated other comprehensive income (loss)	(710)	(578)	1,932
Total shareholders' equity	371,174	387,699	384,815
Total liabilities and shareholders' equity	3,272,841	3,218,383	3,195,611
Series B Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series B issued & outstanding: 31,500, 63,500, and 63,500 shares Series C, convertible, issued & outstanding: 728,706, 728,706, and 728,706 shares	31,500	63,500	63,500
Series C Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred stock, no par value per share. Authorized: 5,000,000 shares Series B issued & outstanding: 31,500, 63,500, and 63,500 shares Series C, convertible, issued & outstanding: 728,706, 728,706, and 728,706 shares	$ 7,287	$ 7,287	$ 7,287

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Loans and Asset Quality Information (Schedule of Carrying Amount of Covered Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Covered loans:
Impaired Purchased Loans - Carrying Value	$ 1,520	$ 1,950
Impaired Purchased Loans - Unpaid Principal Balance	4,443	5,183
Nonimpaired Purchased Loans - Carrying Value	105,089	125,644
Nonimpaired Purchased Loans - Unpaid Principal Balance	121,240	145,698
Total Covered Loans - Carrying Value	106,609	127,594	$ 133,249
Total Covered Loans - Unpaid Principal Balance	125,683	150,881
Commercial, financial and agricultural [Member]
Covered loans:
Impaired Purchased Loans - Carrying Value	59	66
Impaired Purchased Loans - Unpaid Principal Balance	116	123
Nonimpaired Purchased Loans - Carrying Value	947	1,617
Nonimpaired Purchased Loans - Unpaid Principal Balance	975	1,661
Total Covered Loans - Carrying Value	1,006	1,683
Total Covered Loans - Unpaid Principal Balance	1,091	1,784
Real Estate construction, land development and other land loans [Member]
Covered loans:
Impaired Purchased Loans - Carrying Value	297	309
Impaired Purchased Loans - Unpaid Principal Balance	522	534
Nonimpaired Purchased Loans - Carrying Value	3,664	5,235
Nonimpaired Purchased Loans - Unpaid Principal Balance	3,912	6,471
Total Covered Loans - Carrying Value	3,961	5,544
Total Covered Loans - Unpaid Principal Balance	4,434	7,005
Real estate mortgage residential (1-4 family) first mortgages [Member]
Covered loans:
Impaired Purchased Loans - Carrying Value	109	362
Impaired Purchased Loans - Unpaid Principal Balance	636	1,298
Nonimpaired Purchased Loans - Carrying Value	78,151	89,408
Nonimpaired Purchased Loans - Unpaid Principal Balance	91,570	104,678
Total Covered Loans - Carrying Value	78,260	89,770
Total Covered Loans - Unpaid Principal Balance	92,206	105,976
Real estate mortgage home equity loans/lines of credit [Member]
Covered loans:
Impaired Purchased Loans - Carrying Value	8	12
Impaired Purchased Loans - Unpaid Principal Balance	15	19
Nonimpaired Purchased Loans - Carrying Value	11,196	12,791
Nonimpaired Purchased Loans - Unpaid Principal Balance	12,912	15,099
Total Covered Loans - Carrying Value	11,204	12,803
Total Covered Loans - Unpaid Principal Balance	12,927	15,118
Real estate mortgage commercial and other [Member]
Covered loans:
Impaired Purchased Loans - Carrying Value	1,047	1,201
Impaired Purchased Loans - Unpaid Principal Balance	3,154	3,209
Nonimpaired Purchased Loans - Carrying Value	11,131	16,593
Nonimpaired Purchased Loans - Unpaid Principal Balance	11,871	17,789
Total Covered Loans - Carrying Value	12,178	17,794
Total Covered Loans - Unpaid Principal Balance	$ 15,025	$ 20,998

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2013	$ 70,787	$ 132,099	$ 167,136	$ 1,900	$ 371,922
Beginning balance, shares at Dec. 31, 2013		19,680
Net income			17,901		17,901
Cash dividends declared ($0.24 per common share)			(4,730)		(4,730)
Preferred dividends			(651)		(651)
Stock-based compensation		$ 341			341
Stock-based compensation, shares		25
Other comprehensive income (loss)				32	32
Ending balance at Sep. 30, 2014	70,787	$ 132,440	179,656	1,932	$ 384,815
Ending balance, shares at Sep. 30, 2014		19,705			19,705,381
Beginning balance at Dec. 31, 2014	70,787	$ 132,532	184,958	(578)	$ 387,699
Beginning balance, shares at Dec. 31, 2014		19,710			19,709,881
Net income			20,237		$ 20,237
Preferred stock redeemed (Series B)	(32,000)				(32,000)
Stock option exercises		$ 32			32
Stock option exercises, shares		2
Cash dividends declared ($0.24 per common share)			(4,743)		(4,743)
Preferred dividends			(566)		(566)
Stock-based compensation		$ 647			647
Stock-based compensation, shares		73
Other comprehensive income (loss)				(132)	(132)
Ending balance at Sep. 30, 2015	$ 38,787	$ 133,211	$ 199,886	$ (710)	$ 371,174
Ending balance, shares at Sep. 30, 2015		19,785			19,785,314

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FDIC Indemnification Asset (Rollforward of the FDIC Indemnification Asset) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Rollforward of the FDIC indemnification asset
FDIC indemnification asset, beginning	$ 22,569
Decrease related to favorable changes in loss estimates	(2,526)
Increase related to reimbursable expenses	1,031
Cash received	(8,758)	$ (16,810)
Decrease related to accretion of loan discount	(4,558)
Decrease related to settlement of disputed claims	(406)
Other	297
FDIC indemnification asset, ending	$ 7,649	$ 25,328

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Equity-Based Compensation Plans (Schedule of Outstanding Restricted Stock) (Details) - Long-Term Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Number of Units:
Nonvested, beginning | shares	45,219
Granted during the period | shares	65,618
Vested during the period | shares
Forfeited or expired during the period | shares
Nonvested, ending | shares	110,837
Weighted-Average Grant Date Fair Value:
Nonvested, beginning	$ 10.68
Granted during the period	$ 17.28
Vested during the period
Forfeited or expired during the period
Nonvested, ending	$ 14.59

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Comprehensive Income (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
The components of accumulated other comprehensive income (loss):
Total accumulated other comprehensive income (loss)	$ (710)	$ (578)	$ 1,932	$ 1,900
Unrealized Gain (Loss) on Securities Available for Sale [Member]
The components of accumulated other comprehensive income (loss):
Total accumulated other comprehensive income (loss)	(843)	(691)	(1,803)
Deferred tax asset (liability)	329	270	704
Total accumulated other comprehensive income (loss)	(514)	(421)	(1,099)	(1,232)
Additional Pension Asset (Liability) [Member]
The components of accumulated other comprehensive income (loss):
Total accumulated other comprehensive income (loss)	(320)	(257)	4,969
Deferred tax asset (liability)	124	100	(1,938)
Total accumulated other comprehensive income (loss)	$ (196)	$ (157)	$ 3,031	$ 3,132

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Shareholders' Equity Transactions

9 Months Ended

Sep. 30, 2015

Shareholders Equity Transactions [Abstract]

Shareholders Equity Transactions

Note 14 – Shareholders' Equity Transactions

Small Business Lending Fund

On September 1, 2011, the Company completed the sale of $63.5 million of Series B Preferred Stock to the Secretary of the Treasury under the Small Business Lending Fund (“SBLF Stock”). The fund was established under the Small Business Jobs Act of 2010 that was created to encourage lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion.

Under the terms of the stock purchase agreement, the Treasury received 63,500 shares of non-cumulative perpetual preferred stock with a liquidation value of $1,000 per share, in exchange for $63.5 million. On June 25, 2015, the Company redeemed $32 million (32,000 shares) of the outstanding SBLF Stock. The shares were redeemed at their liquidation value of $1,000 per share plus accrued dividends. As of September 30, 2015, the Company continued to have outstanding $31.5 million (31,500 shares) of SBLF Stock. See Note 15 for disclosure regarding a subsequent redemption of the remainder of the SBLF Stock.

The SBLF Stock qualified as Tier 1 capital. The dividend rate, as a percentage of the liquidation amount, fluctuated on a quarterly basis during the first 10 quarters during which the SBLF Stock was outstanding, based upon changes in the level of “Qualified Small Business Lending” or “QSBL”. For the first nine quarters after issuance, the dividend rate could range from one percent (1%) to five percent (5%) per annum based upon the increase in QSBL as compared to the baseline. For the tenth calendar quarter through four and one half years after issuance (the “temporary fixed rate period”), the dividend rate was fixed at between one percent (1%) and seven percent (7%) based upon the level of the issuer's QSBL compared to the baseline. After four and one half years from the issuance, the dividend rate would increase to nine percent (9%). For quarters subsequent to the issuance in 2011, the Company was able to continually increase its level of small business lending and as a result, the dividend rate steadily decreased from 5.0% in 2011 to 1.0% in early 2013. From that point through redemption of the SBLF Stock, the Company was in the “temporary fixed rate period,” in which the dividend rate was fixed at 1%.

For the three months ended September 30, 2015 and 2014, the Company accrued approximately $79,000 and $159,000, respectively, in preferred dividend payments for the Series B Preferred Stock. For the nine months ended September 30, 2015 and 2014, the Company accrued approximately $391,000 and $476,000, respectively, in preferred dividend payments for the SBLF Stock. This amount is deducted from net income in computing “Net income available to common shareholders.”

Series C Preferred Stock

On December21, 2012, the Company issued 2,656,294 shares of its common stock and 728,706 shares of the Company's Series C Preferred Stock to certain accredited investors, each at the price of $10.00 per share, pursuant to a private placement transaction. Net proceeds from this sale of common and preferred stock were $33.8 million and were used to strengthen and remove risk from the Company's balance sheet in anticipation of a planned disposition of certain classified loans and write-down of foreclosed real estate.

The Series C Preferred Stock qualifies as Additional Tier 1 capital and is Convertible Perpetual Preferred Stock, with dividend rights equal to the Company's Common Stock. Each share of Series C Preferred Stock will automatically convert into one share of Common Stock on the date the holder of Series C Preferred Stock transfers any shares of Series C Preferred Stock to a non-affiliate of the holder in certain permissible transfers. The Series C Preferred Stock is non-voting, except in limited circumstances.

The Series C Preferred Stock pays a dividend per share equal to that of the Company's common stock. During each of the third quarters of 2015 and 2014, the Company accrued approximately $58,000in preferred dividend payments for the Series C Preferred Stock. During each of the first nine months of 2015 and 2014, the Company accrued approximately $175,000 in preferred dividend payments for the Series C Preferred Stock.

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Earnings Per Common Share (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock options [Member]
Anti-dilutive securities [Line Items]
Number of anti-dilutive securities	52,500	93,000	52,500	93,000
Stock options - Improbability of Vesting [Member]
Anti-dilutive securities [Line Items]
Number of anti-dilutive securities		75,000		75,000

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Equity-Based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2015

Equity-Based Compensation Plans [Abstract]

Schedule of Company's stock options outstanding

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term (years)		Aggregate Intrinsic Value
Balance at January 1, 2015		179,102		$	18.55
Granted		—			—
Exercised		(2,250	)		14.35
Forfeited		—			—
Expired		(48,388	)		20.07
Outstanding at September 30, 2015		128,464		$	18.05		2.0	$	70,000
Exercisable at September 30, 2015		128,464		$	18.05		2.0	$	70,000

Schedule of outstanding restricted stock

	Long-Term Restricted Stock
	Number of Units		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2015		45,219	$	10.68
Granted during the period		65,618		17.28
Vested during the period		—		—
Forfeited or expired during the period		—		—
Nonvested at September 30, 2015		110,837	$	14.59

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Fair Value (Financial instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Securities available for sale:
Securities available for sale	$ 178,765	$ 158,018	$ 153,238
Recurring [Member] | Fair Value [Member]
Securities available for sale:
Government-sponsored enterprise securities	27,850	27,521
Mortgage-backed securities	125,836	129,510
Corporate bonds	24,948	865
Equity securities	131	122
Securities available for sale	$ 178,765	$ 158,018
Recurring [Member] | Quoted Prices in Market for Identical Assets (Level 1) [Member]
Securities available for sale:
Government-sponsored enterprise securities
Mortgage-backed securities
Corporate bonds
Equity securities
Securities available for sale
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale:
Government-sponsored enterprise securities	$ 27,850	$ 27,521
Mortgage-backed securities	125,836	129,510
Corporate bonds	24,948	865
Equity securities	131	122
Securities available for sale	$ 178,765	$ 158,018
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Securities available for sale:
Government-sponsored enterprise securities
Mortgage-backed securities
Corporate bonds
Equity securities
Securities available for sale
Nonrecurring [Member] | Fair Value [Member]
Securities available for sale:
Impaired loans - covered	$ 2,466	$ 3,991
Impaired loans - non-covered	18,415	18,035
Other real estate - covered	1,569	2,350
Other real estate - non-covered	$ 9,304	$ 9,771
Nonrecurring [Member] | Quoted Prices in Market for Identical Assets (Level 1) [Member]
Securities available for sale:
Impaired loans - covered
Impaired loans - non-covered
Other real estate - covered
Other real estate - non-covered
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale:
Impaired loans - covered
Impaired loans - non-covered
Other real estate - covered
Other real estate - non-covered
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Securities available for sale:
Impaired loans - covered	$ 2,466	$ 3,991
Impaired loans - non-covered	18,415	18,035
Other real estate - covered	1,569	2,350
Other real estate - non-covered	$ 9,304	$ 9,771

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Shareholders' Equity [Abstract]
Cash dividends declared, per share	$ 0.08	$ 0.08	$ 0.24	$ 0.24

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Securities held to maturity fair values	$ 162,858	$ 182,411	$ 57,601
Preferred stock, shares authorized	5,000,000	5,000,000	5,000,000
common stock, shares authorized	40,000,000	40,000,000	40,000,000
Common stock, shares issued	19,785,314	19,709,881	19,705,381
Common stock, shares outstanding	19,785,314	19,709,881	19,705,381
Series B Preferred Stock [Member]
Preferred stock, shares issued	31,500	63,500	63,500
Preferred stock, shares outstanding	31,500	63,500	63,500
Series C Preferred Stock [Member]
Preferred stock, shares issued	728,706	728,706	728,706
Preferred stock, shares outstanding	728,706	728,706	728,706

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FDIC Indemnification Asset

9 Months Ended

Sep. 30, 2015

Fdic Indemnification Asset [Abstract]

FDIC Indemnification Asset

Note 9 – FDIC Indemnification Asset

The FDIC indemnification asset is the estimated amount that the Company will receive from the FDIC under loss share agreements associated with two FDIC-assisted failed bank acquisitions. See page 40 of the Company's 2014 Annual Report on Form 10-K for a detailed explanation of this asset.

The FDIC indemnification asset was comprised of the following components as of the dates shown:

($ in thousands)	September 30, 2015			December 31, 2014		September 30, 2014
Receivable (payable) related to loss claims incurred (recoveries), not yet reimbursed, net	$	(2,427	)		6,899		5,957
Receivable related to estimated future claims on loans		9,522			14,933		17,932
Receivable related to estimated future claims on foreclosed real estate		554			737		1,439
FDIC indemnification asset	$	7,649			22,569		25,328

Included in the receivable related to loss claims incurred, not yet reimbursed, at December 31, 2014, was $1.2 million related to two claims involving the same borrower. The FDIC initially denied both claims because the FDIC disagreed with the collection strategy that the Company undertook. During the second quarter of 2015, the Company and the FDIC reached an agreement to resolve this matter, as follows. One of the two claims amounting to $324,000 was accepted by the FDIC and the related loan remains subject to the loss share agreement, which provides that any future recoveries realized prior to June 30, 2017 are to be split on an 80%/20% basis with the FDIC (the FDIC receives 80%). For the other claim amounting to $886,000, the FDIC paid the Company $480,000 and the related loan was removed from the provisions of the loss share agreement. This will result in the Company retaining 100% of any future recoveries. As a result of this negotiated agreement, during the second quarter of 2015, the Company wrote off the $406,000 portion of the claim not being reimbursed by the FDIC, which is reflected in the “Other gains (losses)” line item in the Consolidated Statements of Income. 

The following presents a rollforward of the FDIC indemnification asset since December 31, 2014.

($ in thousands)
Balance at December 31, 2014	$	22,569
Decrease related to favorable changes in loss estimates		(2,526	)
Increase related to reimbursable expenses		1,031
Cash received		(8,758	)
Decrease related to accretion of loan discount		(4,558	)
Decrease related to settlement of disputed claims		(406	)
Other		297
Balance at September 30, 2015	$	7,649

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information
Entity Registrant Name	FIRST BANCORP /NC/
Entity Central Index Key	0000811589
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,785,314
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill And Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 10 – Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of September 30, 2015, December 31, 2014, and September 30, 2014 and the carrying amount of unamortized intangible assets as of those same dates.

	September 30, 2015				December 31, 2014				September 30, 2014
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	678		539		678		505		678		495
Core deposit premiums		8,560		7,183		8,560		6,675		8,560		6,491
Total	$	9,238		7,722		9,238		7,180		9,238		6,986
Unamortizable intangible assets:
Goodwill	$	65,835				65,835				65,835

Amortization expense totaled $181,000 and $194,000 for the three months ended September 30, 2015 and 2014, respectively. Amortization expense totaled $541,000 and $582,000 for the nine months ended September 30, 2015 and 2014, respectively.

The following table presents the estimated amortization expense for the last quarter of calendar year 2015 and for each of the four calendar years ending December 31, 2019 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

($ in thousands)	Estimated Amortization Expense
October 1 to December 31, 2015	$	180
2016		654
2017		404
2018		129
2019		122
Thereafter		27
Total	$	1,516

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Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INTEREST INCOME
Interest and fees on loans	$ 29,863	$ 32,019	$ 88,257	$ 102,481
Interest on investment securities:
Taxable interest income	1,670	646	4,693	2,523
Tax-exempt interest income	455	470	1,375	1,411
Other, principally overnight investments	142	239	523	590
Total interest income	32,130	33,374	94,848	107,005
INTEREST EXPENSE
Savings, checking and money market accounts	292	263	842	774
Time deposits of $100,000 or more	657	1,058	2,236	3,413
Other time deposits	308	408	977	1,283
Borrowings	487	302	1,099	849
Total interest expense	1,744	2,031	5,154	6,319
Net interest income	30,386	31,343	89,694	100,686
Provision for loan losses - non-covered	267	1,279	1,372	5,802
Provision (reversal) for loan losses - covered	(1,681)	206	(2,109)	2,917
Total provision (reversal) for loan losses	(1,414)	1,485	(737)	8,719
Net interest income after provision for loan losses	31,800	29,858	90,431	91,967
NONINTEREST INCOME
Service charges on deposit accounts	2,951	3,426	8,724	10,445
Other service charges, commissions and fees	2,778	2,538	8,091	7,467
Fees from presold mortgage loans	481	807	2,020	2,204
Commissions from sales of insurance and financial products	691	685	1,917	1,985
Bank-owned life insurance income	382	311	1,136	956
Foreclosed property gains (losses) - non-covered	(857)	(757)	(1,932)	(1,464)
Foreclosed property gains (losses) - covered	(82)	773	410	(2,517)
FDIC indemnification asset income (expense), net	(2,865)	$ (3,210)	(7,085)	(9,704)
Securities gains (losses)	(1)		(1)	786
Other gains (losses)	28	$ 35	(241)	(282)
Total noninterest income	3,506	4,608	13,039	9,876
NONINTEREST EXPENSES
Salaries	12,378	11,773	35,456	34,787
Employee benefits	2,221	2,550	6,702	7,147
Total personnel expense	14,599	14,323	42,158	41,934
Net occupancy expense	1,823	1,863	5,504	5,547
Equipment related expenses	900	953	2,805	2,905
Intangibles amortization	181	194	541	582
Other operating expenses	7,111	8,598	21,620	23,294
Total noninterest expenses	24,614	25,931	72,628	74,262
Income before income taxes	10,692	8,535	30,842	27,581
Income tax expense	3,687	2,956	10,605	9,680
Net income	7,005	5,579	20,237	17,901
Preferred stock dividends	(137)	(217)	(566)	(651)
Net income available to common shareholders	$ 6,868	$ 5,362	$ 19,671	$ 17,250
Earnings per common share: Basic	$ 0.35	$ 0.27	$ 1.00	$ 0.88
Earnings per common share: Diluted	0.34	0.27	0.97	0.85
Dividends declared per common share	$ 0.08	$ 0.08	$ 0.24	$ 0.24
Weighted average common shares outstanding: Basic	19,781,789	19,705,514	19,760,807	19,697,426
Weighted average common shares outstanding: Diluted	20,512,959	20,437,739	20,491,973	20,431,836

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Equity-Based Compensation Plans

9 Months Ended

Sep. 30, 2015

Equity-Based Compensation Plans [Abstract]

Equity-Based Compensation Plans

Note 4 – Equity-Based Compensation Plans

At September 30, 2015, the Company had the following equity-based compensation plans:  the First Bancorp 2014 Equity Plan, the First Bancorp 2007 Equity Plan, and the First Bancorp 2004 Stock Option Plan.  The Company's shareholders approved all equity-based compensation plans.  The First Bancorp 2014 Equity Plan became effective upon the approval of shareholders on May 8, 2014.  As of September 30, 2015, the First Bancorp 2014 Equity Plan was the only plan that had shares available for future grants. 

The First Bancorp 2014 Equity Plan is intended to serve as a means to attract, retain and motivate key employees and directors and to associate the interests of the plans' participants with those of the Company and its shareholders.  The First Bancorp 2014 Equity Plan allows for both grants of stock options and other types of equity-based compensation, including stock appreciation rights, restricted stock, restricted performance stock, unrestricted stock, and performance units. 

Recent equity grants to employees have either had performance vesting conditions, service vesting conditions, or both.  Compensation expense for these grants is recorded over the various service periods based on the estimated number of equity grants that are probable to vest.  No compensation cost is recognized for grants that do not vest and any previously recognized compensation cost will be reversed.

As it relates to director equity grants, the Company grants common shares, valued at approximately $16,000 to each non-employee director (currently eight in total) in June of each year. Compensation expense associated with these director grants is recognized on the date of grant since there are no vesting conditions. On June 1, 2015, the Company granted 8,176 shares of common stock to non-employee directors (1,022 shares per director), at a fair market value of $15.75 per share, which was the closing price of the Company's common stock on that date. On June 2, 2014, the Company granted 10,065 shares of common stock to non-employee directors (915 shares per director), at a fair market value of $17.60 per share, which was the closing price of the Company's common stock on that date.  

Pursuant to an employment agreement, the Company granted the chief executive officer 75,000 non-qualified stock options and 40,000 shares of restricted stock during the third quarter of 2012.  The option award would have fully vested on December 31, 2014 if the Company achieved a certain earnings targetfor 2014.  The Company did not achieve the applicable target, and therefore, the option award was forfeited as of December 31, 2014. No compensation expense was recognized for the option award. The restricted stock award will vest in full on December 31, 2015, if the Company achieves a certain earnings target in 2015, and will be forfeited if the applicable target is not achieved.  Based on current conditions, the Company has concluded that it is not probable that the restricted stock award will vest, and thus no compensation expense has been recorded. 

In 2014, the Company's Compensation Committee determined that seven of the Company's senior officers would receive 50% of the bonus earned under the Company's annual incentive plan in shares of restricted stock, instead of being exclusively cash, which had been the Company's prior practice.  This resulted in the Company grantinga total of 14,882 shares of restricted common stock to those officers on February 24, 2015.  The shares vest annually in one-third increments beginning on December 31, 2015.  The total compensation expense associated with this grant was $258,000, which is being recorded over the vesting period.  The Company recorded $23,300 and $69,800 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

Also, on February 24, 2015, the Company granted a total of 30,404 shares ofrestricted common stock to eleven senior officers.  The shares vest annually in one-third increments beginning on December 31, 2015. The total compensation expense associated with this grant was $527,000, which is being recorded over the vesting period.  The Company recorded $80,500 and $241,500 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

On April 10,2015, the Company granted a total of 14,425 shares of restricted common stock to five employees. The shares vest three years from the date of the grant on April 10,2018. The total compensation expense associated with this grant was $249,000, which is being recorded over the vesting period. The Company recorded $20,700 and $41,400 in compensation expense during the three and nine months ended September 30, 2015 related to these grants.

In September 2015, the Company granted a total of 5,907 shares of restricted common stock to three employees. The shares vest three years from the date of the grant. The total compensation expense associated with this grant was $100,005, which is being recorded over the vesting period. The Company recorded $2,800 in compensation expense during the three months ended September 30, 2015 related to these grants.

Based on the Company's performance in 2013, the Company granted 15,657 shares of restricted common stock to the chief executive officer on February 11, 2014 with a two year minimum vesting period.  The total compensation expense associated with this grant was $278,200 and the grant will fully vest on January 1, 2016.  One third of this value was expensed during each of 2013 and 2014, with the remaining one third being expensed in 2015.  The Company recorded $23,200 and $69,600 in compensation expense during each of the three and nine months ended September 30, 2015 and 2014.

Under the terms of the predecessor plans and the First Bancorp 2014 Equity Plan, options can have a term of no longer than ten years, and all options granted thus far under these plans have had a term of ten years.  The Company's options provide for immediate vesting under certain conditions if there is a change in control (as defined in the plans).

At September 30, 2015, there were 128,464 options outstanding under the Company's three option plans, with exercise prices ranging from $14.35 to $22.04.  At September 30, 2015, there were 916,141 shares remaining available for grant under the First Bancorp 2014 Equity Plan. 

The Company issues new shares of common stock when options are exercised.

The Company measures the fair value of each option award on the date of grant using the Black-Scholes option-pricing model.  The Company determines the assumptions used in the Black-Scholes option pricing model as follows:  the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant; the dividend yield is based on the Company's dividend yield at the time of the grant (subject to adjustment if the dividend yield on the grant date is not expected to approximate the dividend yield over the expected life of the option); the volatility factor is based on the historical volatility of the Company's stock (subject to adjustment if future volatility is reasonably expected to differ from the past); and the weighted-average expected life is based on the historical behavior of employees related to exercises, forfeitures and cancellations.

The Company recorded total stock-based compensation expense of $150,000 and $23,000for the three months ended September 30, 2015 and 2014, respectively, and $554,000 and $248,000 for the nine months ended September 30, 2015 and 2014, respectively. Of the $554,000 in expense that was recorded in 2015, approximately $129,000 related to the June 1, 2015 director grants, which is classified as “other operating expenses” in the Consolidated Statements of Income. The remaining $425,000 in expense relates to the employee grants discussed above and is recorded as “salaries expense.”  Stock based compensation is reflected as an adjustment to cash flows from operating activities on the Company's Consolidated Statement of Cash Flows.  The Company recognized $216,000 and $97,000of income tax benefits related to stock based compensation expense in the income statement for the nine months ended September 30, 2015 and 2014, respectively. 

As noted above, certain of the Company's stock option grants contain terms that provide for a graded vesting schedule whereby portions of the award vest in increments over the requisite service period.  The Company has elected to recognize compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for the entire award.  Compensation expense is based on the estimated number of stock options and awards that will ultimately vest.  Over the past five years, there have only been minimal amounts of forfeitures, and therefore the Company assumes that all awards granted without performance conditions will become vested.

The following table presents information regarding the activity for the first nine months of 2015 related to the Company's stock options outstanding:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term (years)		Aggregate Intrinsic Value
Balance at January 1, 2015		179,102		$	18.55
Granted		—			—
Exercised		(2,250	)		14.35
Forfeited		—			—
Expired		(48,388	)		20.07
Outstanding at September 30, 2015		128,464		$	18.05		2.0	$	70,000
Exercisable at September 30, 2015		128,464		$	18.05		2.0	$	70,000

During the nine months ended September 30, 2015, the Company received $32,000 as a result of stock option exercises. The Company did not have any stock option exercises during the nine months ended September 30, 2014. The Company recorded no tax benefits from the exercise of nonqualified stock options during the nine months ended September 30, 2015 or 2014. 

The following table presents information regarding the activity the first nine months of 2015 related to the Company's outstanding restricted stock:

	Long-Term Restricted Stock
	Number of Units		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2015		45,219	$	10.68
Granted during the period		65,618		17.28
Vested during the period		—		—
Forfeited or expired during the period		—		—
Nonvested at September 30, 2015		110,837	$	14.59

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Reclassifications

9 Months Ended

Sep. 30, 2015

Reclassifications [Abstract]

Reclassifications

Note 3 – Reclassifications

Certain amounts reported in the period ended September 30, 2014 have been reclassified to conform to the presentation for September 30, 2015. These reclassifications had no effect on net income or shareholders' equity for the periods presented, nor did they materially impact trends in financial information.

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Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Event [Abstract]

Subsequent Event

Note 15 – Subsequent Event

On October 16, 2015, the Company redeemed the remaining $31.5 million (31,500 shares) of the outstanding SBLF Stock. The shares were redeemed at their liquidation value of $1,000 per share plus accrued dividends. With this redemption, the Company has redeemed all of its SBLF Stock.

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Pension Plans

9 Months Ended

Sep. 30, 2015

Pension Plans [Abstract]

Pension Plans

Note 11 – Pension Plans

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

The Company recorded pension income totaling $300,000 and $264,000 for the three months ended September 30, 2015 and 2014, respectively, which primarily related to investment income from the Pension Plan's assets. The following table contains the components of the pension income.

	For the Three Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost - benefits earned during the period	$	—			—			36			69			36			69
Interest cost		341			365			52			53			393			418
Expected return on plan assets		(713	)		(695	)		—			—			(713	)		(695	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(16	)		(56	)		(16	)		(56	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(372	)		(330	)		72			66			(300	)		(264	)

The Company recorded pension income totaling $855,000 and $791,000 for the nine months ended September 30, 2015 and 2014, respectively, which primarily related to investment income from the Pension Plan's assets. The following table contains the components of the pension income.

	For the Nine Months Ended September 30,
	2015			2014			2015			2014			2015 Total			2014 Total
($ in thousands)	Pension Plan			Pension Plan			SERP			SERP			Both Plans			Both Plans
Service cost - benefits earned during the period	$	—			—			164			204			164			204
Interest cost		1,023			1,096			154			159			1,177			1,255
Expected return on plan assets		(2,133	)		(2,084	)		—			—			(2,133	)		(2,084	)
Amortization of transition obligation		—			—			—			—			—			—
Amortization of net (gain)/loss		—			—			(63	)		(166	)		(63	)		(166	)
Amortization of prior service cost		—			—			—			—			—			—
Net periodic pension cost (income)	$	(1,110	)		(988	)		255			197			(855	)		(791	)

The Company's contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to be deductible for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company does not expect to contribute to the Pension Plan in 2015.

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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Loans and Asset Quality Information

9 Months Ended

Sep. 30, 2015

Loans and Asset Quality Information [Abstract]

Loans and Asset Quality Information

Note 7 – Loans and Asset Quality Information

The loans and foreclosed real estate that were acquired in FDIC-assisted transactions are covered by loss share agreements between the FDIC and the Company's banking subsidiary, First Bank, which afford First Bank significant loss protection - see Note 2 to the financial statements included in the Company's 2011 Annual Report on Form 10-K for detailed information regarding these transactions.  Because of the loss protection provided by the FDIC, the risk of the loans and foreclosed real estate that are covered by loss share agreements are significantly different from those assets not covered under the loss share agreements.  Accordingly, the Company presents separately loans subject to the loss share agreements as “covered loans” in the information below and loans that are not subject to the loss share agreements as “non-covered loans.” 

On July 1, 2014, one of the Company's loss share agreements with the FDIC expired. The agreement that expired related to the non-single family assets of Cooperative Bank, a failed bank acquisition in 2009. Accordingly, the remaining balances associated with these loans and foreclosed real estate were transferred from the covered portfolio to the non-covered portfolio on July 1, 2014. The Company will bear all future losses on this portfolio of loans and foreclosed real estate. Immediately prior to the transfer to non-covered status, the loans in this portfolio had a carrying value of $39.7 million and the foreclosed real estate in this portfolio had a carrying value of $3.0 million.  Of the $39.7 million in loans that lost loss share protection, approximately $9.7 million were on nonaccrual status and $2.1 million were classified as accruing troubled debt restructurings as of July 1, 2014. Additionally, approximately $1.7 million in allowance for loan losses associated with this portfolio of loans was transferred to the allowance for loan losses for non-covered loans on July 1, 2014.

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

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
All loans (non-covered and covered):
Commercial, financial, and agricultural	$	199,630		8%	$	160,878		7%	$	165,215		7%
Real estate – construction, land development & other land loans		294,426		12%		288,148		12%		298,091		13%
Real estate – mortgage – residential (1-4 family) first mortgages		770,691		31%		789,871		33%		806,954		33%
Real estate – mortgage – home equity loans / lines of credit		224,639		9%		223,500		9%		224,553		9%
Real estate – mortgage – commercial and other		944,432		38%		882,127		37%		879,122		36%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,480,938		100%		2,395,228		100%		2,425,360		100%
Unamortized net deferred loan costs		765				946				730
Total loans	$	2,481,703			$	2,396,174			$	2,426,090

The following is a summary of the major categories of non-covered loans outstanding:

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Non-covered loans:
Commercial, financial, and agricultural	$	198,624		9%	$	159,195		7%	$	162,994		7%
Real estate – construction, land development & other land loans		290,465		12%		282,604		13%		292,401		13%
Real estate – mortgage – residential (1-4 family) first mortgages		692,431		29%		700,101		31%		714,879		31%
Real estate – mortgage – home equity loans / lines of credit		213,435		9%		210,697		9%		211,477		9%
Real estate – mortgage – commercial and other		932,254		39%		864,333		38%		858,935		38%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,374,329		100%		2,267,634		100%		2,292,111		100%
Unamortized net deferred loan costs		765				946				730
Total non-covered loans	$	2,375,094			$	2,268,580			$	2,292,841

The carrying amount of the covered loans at September 30, 2015 consisted of impaired and nonimpaired purchased loans (as determined on the date of acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	59		116		947		975		1,006		1,091
Real estate – construction, land development & other land loans		297		522		3,664		3,912		3,961		4,434
Real estate – mortgage – residential (1-4 family) first mortgages		109		636		78,151		91,570		78,260		92,206
Real estate – mortgage – home equity loans / lines of credit		8		15		11,196		12,912		11,204		12,927
Real estate – mortgage – commercial and other		1,047		3,154		11,131		11,871		12,178		15,025
Total	$	1,520		4,443		105,089		121,240		106,609		125,683

The carrying amount of the covered loans at December 31, 2014 consisted of impaired and nonimpaired purchased loans (as determined on the date of the acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	66		123		1,617		1,661		1,683		1,784
Real estate – construction, land development & other land loans		309		534		5,235		6,471		5,544		7,005
Real estate – mortgage – residential (1-4 family) first mortgages		362		1,298		89,408		104,678		89,770		105,976
Real estate – mortgage – home equity loans / lines of credit		12		19		12,791		15,099		12,803		15,118
Real estate – mortgage – commercial and other		1,201		3,209		16,593		17,789		17,794		20,998
Total	$	1,950		5,183		125,644		145,698		127,594		150,881

The following table presents information regarding covered purchased nonimpaired loans since December 31, 2013. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond.

($ in thousands)
Carrying amount of nonimpaired covered loans at December 31, 2013	$	207,167
Principal repayments		(50,183	)
Transfers to foreclosed real estate		(5,061	)
Transfers to non-covered loans due to expiration of loss-share agreement		(38,987	)
Net loan (charge-offs) / recoveries		(3,301	)
Accretion of loan discount		16,009
Carrying amount of nonimpaired covered loans at December 31, 2014		125,644
Principal repayments		(25,051	)
Transfers to foreclosed real estate		(1,129	)
Net loan (charge-offs) / recoveries		1,728
Accretion of loan discount		3,897
Carrying amount of nonimpaired covered loans at September 30, 2015	$	105,089

As reflected in the table above, the Company accreted $3,897,000 of the loan discount on purchased nonimpaired loans into interest income during the first nine months of 2015. As of September 30, 2015, there was remaining loan discount of $14,151,000 related to purchased accruing loans.  If these loans continue to be repaid by the borrowers, the Company will accrete the remaining loan discount into interest income over the covered lives of the respective loans.  In such circumstances, a corresponding entry to reduce the indemnification asset will be recorded amounting to approximately 80% of the loan discount accretion, which reduces noninterest income. At September 30, 2015, the Company also had $2,043,000 of loan discount related to purchased nonaccruing loans.  It is not expected that a significant amount of this discount will be accreted, as it represents estimated losses on these loans.

The following table presents information regarding all purchased impaired loans since December 31, 2013, the majority of which are covered loans.  The Company has applied the cost recovery method to all purchased impaired loans at their respective acquisition dates due to the uncertainty as to the timing of expected cash flows, as reflected in the following table. 

($ in thousands) Purchased Impaired Loans	Contractual Principal Receivable			Fair Market Value Adjustment – Write Down (Nonaccretable Difference)			Carrying Amount
Balance at December 31, 2013	$	6,263			3,121			3,142
Change due to payments received		(599)			227			(826)
Change due to loan charge-off		(2)			29			(31)
Other		197			(115)			312
Balance at December 31, 2014	$	5,859			3,262			2,597
Change due to payments received		(330	)		55			(385)
Transfer to foreclosed real estate		(431	)		(336	)		(95)
Other		(3	)		(3	)		—
Balance at September 30, 2015	$	5,095			2,978			2,117

Because of the uncertainty of the expected cash flows, the Company is accounting for each purchased impaired loan under the cost recovery method, in which all cash payments are applied to principal. Thus, there is no accretable yield associated with the above loans. During the first nine months of 2015 and 2014, the Company received $56,000 and $179,000, respectively, in payments that exceeded the initial carrying amount of the purchased impaired loans, which is included in the loan discount accretion amount discussed previously.

Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate.  Nonperforming assets are summarized as follows:

ASSET QUALITY DATA ($ in thousands)	September 30, 2015		December 31, 2014		September 30, 2014
Non-covered nonperforming assets
Nonaccrual loans	$	42,347	$	50,066	$	53,620
Restructured loans - accruing		29,250		35,493		31,501
Accruing loans > 90 days past due		—		—		—
Total non-covered nonperforming loans		71,597		85,559		85,121
Foreclosed real estate		9,304		9,771		11,705
Total non-covered nonperforming assets	$	80,901	$	95,330	$	96,826
Covered nonperforming assets
Nonaccrual loans (1)	$	5,373	$	10,508	$	10,478
Restructured loans - accruing		3,825		5,823		6,273
Accruing loans > 90 days past due		—		—		—
Total covered nonperforming loans		9,198		16,331		16,751
Foreclosed real estate		1,569		2,350		3,237
Total covered nonperforming assets	$	10,767	$	18,681	$	19,988
Total nonperforming assets	$	91,668	$	114,011	$	116,814

(1)  At September 30, 2015, December 31, 2014, and September 30, 2014, the contractual balance of the nonaccrual loans covered by FDIC loss share agreements was $10.1 million, $16.0 million, and $16.3 million, respectively.

At September 30, 2015, the Company had $3.0 million in residential mortgage loans in process of foreclosure.

The remaining tables in this note present information derived from the Company's allowance for loan loss model. Relevant accounting guidance requires certain disclosures to be disaggregated based on how the Company develops its allowance for loan losses and manages its credit exposure. This model combines loan types in a different manner than the tables previously presented.

The following table presents the Company's nonaccrual loans as of September 30, 2015.

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	470		22		492
Commercial – secured		2,253		—		2,253
Secured by inventory and accounts receivable		84		23		107
Real estate – construction, land development & other land loans		5,374		60		5,434
Real estate – residential, farmland and multi-family		21,936		3,270		25,206
Real estate – home equity lines of credit		2,110		362		2,472
Real estate – commercial		9,762		1,636		11,398
Consumer		358		—		358
Total	$	42,347		5,373		47,720

The following table presents the Company's nonaccrual loans as of December 31, 2014. 

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	187		1		188
Commercial – secured		2,927		—		2,927
Secured by inventory and accounts receivable		454		103		557
Real estate – construction, land development & other land loans		7,891		1,140		9,031
Real estate – residential, farmland and multi-family		24,459		7,785		32,244
Real estate – home equity lines of credit		2,573		278		2,851
Real estate – commercial		11,070		1,201		12,271
Consumer		505		—		505
Total	$	50,066		10,508		60,574

The following table presents an analysis of the payment status of the Company's loans as of September 30, 2015.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	734		—		470		49,325		50,529
Commercial - secured		772		73		2,253		114,989		118,087
Secured by inventory and accounts receivable		366		—		84		33,177		33,627
Real estate – construction, land development & other land loans		938		90		5,374		269,002		275,404
Real estate – residential, farmland, and multi-family		5,404		1,948		21,936		822,084		851,372
Real estate – home equity lines of credit		996		332		2,110		199,180		202,618
Real estate - commercial		4,013		234		9,762		785,182		799,191
Consumer		379		239		358		42,525		43,501
Total non-covered	$	13,602		2,916		42,347		2,315,464		2,374,329
Unamortized net deferred loan costs										765
Total non-covered loans									$	2,375,094
Covered loans	$	340		751		5,373		100,145		106,609
Total loans	$	13,942		3,667		47,720		2,415,609		2,481,703

The Company had no non-covered or covered loans that were past due greater than 90 days and accruing interest at September 30, 2015.

The following table presents an analysis of the payment status of the Company's loans as of December 31, 2014.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	191		35		187		36,871		37,284
Commercial - secured		1,003		373		2,927		102,671		106,974
Secured by inventory and accounts receivable		30		225		454		21,761		22,470
Real estate – construction, land development & other land loans		1,950		139		7,891		247,535		257,515
Real estate – residential, farmland, and multi-family		11,272		3,218		24,459		807,884		846,833
Real estate – home equity lines of credit		1,585		352		2,573		194,067		198,577
Real estate - commercial		3,738		996		11,070		738,981		754,785
Consumer		695		131		505		41,865		43,196
Total non-covered	$	20,464		5,469		50,066		2,191,635		2,267,634
Unamortized net deferred loan costs										946
Total non-covered loans									$	2,268,580
Covered loans	$	4,385		964		10,508		111,737		127,594
Total loans	$	24,849		6,433		60,574		2,303,372		2,396,174

The Company had no non-covered or covered loans that were past due greater than 90 days and accruing interest at December 31, 2014.

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and nine months ended September 30, 2015.

($ in thousands)	Commercial, Financial and Agricultural				Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated		Total
As of and for the three months ended September 30, 2015
Beginning balance	$	5,564			5,016			9,641			3,167			4,723			948			1,096		30,155
Charge-offs	(523			)	(574		)	(1,949		)	(31		)	(198		)	(369		)	—		(3,644)
Recoveries	387				625			98			43			140			84			—		1,377
Provisions	(185			)	(1,105		)	1,341			(565		)	249			216			316		267
Ending balance	$	5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
As of and for the nine months ended September 30, 2015
Beginning balance	$		8,391			6,470			9,720			3,731			9,045			841			147		38,345
Charge-offs			(3,550	)		(2,532	)		(4,362	)		(594	)		(2,147	)		(1,222	)		—		(14,407)
Recoveries			735			942			270			88			535			275			—		2,845
Provisions			(333	)		(918	)		3,503			(611	)		(2,519	)		985			1,265		1,372
Ending balance	$		5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
Ending balances as of September 30, 2015: Allowance for loan losses
Individually evaluated for impairment	$		135			250			1,575			—			449			—			—		2,409
Collectively evaluated for impairment	$		5,108			3,712			7,556			2,614			4,465			879			1,412		25,746
Loans acquired with deteriorated credit quality	$		—			—			—			—			—			—			—		—
Loans receivable as of September 30, 2015:
Ending balance - total	$		202,243			275,404			851,372			202,618			799,191			43,501			—		2,374,329
Unamortized net deferred loan costs																							765
Total non-covered loans																						$	2,375,094
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$		986			4,685			23,599			—			16,655			—			—		45,925
Collectively evaluated for impairment	$		201,257			270,719			827,773			202,618			781,939			43,501			—		2,327,807
Loans acquired with deteriorated credit quality	$		—			—			—			—			597			—			—		597

The following table presents the activity in the allowance for loan losses for non-covered loans for the year ended December 31, 2014. 

($ in thousands)	Commercial, Financial, and Agricultural		Real Estate – Construction, Land Development, & Other Land Loans		Real Estate – Residential, Farmland, and Multi- family		Real Estate – Home Equity Lines of Credit		Real Estate – Commercial and Other		Consumer		Unallo- cated		Total
As of and for the year ended December 31, 2014
Beginning balance	$	7,432		12,966		15,142		1,838		5,524		1,513		(152)		44,263
Charge-offs		(4,039)		(2,148)		(4,417)		(912)		(3,048)		(1,724)		—		(16,288)
Recoveries		140		398		331		45		181		451		—		1,546
Transfer from covered category		36		813		51		—		833		4		—		1,737
Provisions		4,822		(5,559)		(1,387)		2,760		5,555		597		299		7,087
Ending balance	$	8,391		6,470		9,720		3,731		9,045		841		147		38,345
Ending balances as of December 31, 2014: Allowance for loan losses
Individually evaluated for impairment	$	211		415		1,686		—		165		—		—		2,477
Collectively evaluated for impairment	$	8,180		6,055		8,034		3,731		8,880		841		147		35,868
Loans acquired with deteriorated credit quality	$	—		—		—		—		—		—		—		—
Loans receivable as of December 31, 2014:
Ending balance - total	$	166,728		257,515		846,833		198,577		754,785		43,196		—		2,267,634
Unamortized net deferred loan costs																946
Total non-covered loans															$	2,268,580
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	784		7,991		20,263		476		20,263		7		—		53,531
Collectively evaluated for impairment	$	165,944		249,524		733,875		198,101		733,875		43,189		—		2,213,456
Loans acquired with deteriorated credit quality	$	—		—		—		—		647		—		—		647

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and nine months ended September 30, 2014.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans		Real Estate – Residential, Farmland, and Multi- family		Real Estate – Home Equity Lines of Credit		Real Estate – Commercial and Other		Consumer		Unallo- cated		Total
As of and for the three months ended September 30, 2014
Beginning balance	$	8,948		7,414		11,132		3,755		9,212		906		599		41,966
Charge-offs	(840)			(470)		(874)		(116)		(987)		(463)		—		(3,750)
Recoveries	32			40		111		7		14		128		—		332
Transfer from covered category	36			813		51		—		833		4		—		1,737
Provisions	1,185			(574)		(194)		49		971		343		(501)		1,279
Ending balance	$		9,361	7,223		10,226		3,695		10,043		918		98		41,564
As of and for the nine months ended September 30, 2014
Beginning balance	$	7,432			12,966		15,142		1,838		5,524		1,513		(152)		44,263
Charge-offs		(3,506)			(1,704)		(2,505)		(619)		(1,876)		(1,262)		—		(11,472)
Recoveries		81			349		290		18		135		361		—		1,234
Transfer from covered category		36			813		51		—		833		4		—		1,737
Provisions		5,318			(5,201)		(2,752)		2,458		5,427		302		250		5,802
Ending balance	$	9,361			7,223		10,226		3,695		10,043		918		98		41,564
Ending balances as of September 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	381			513		1,771		—		229		20		—		2,914
Collectively evaluated for impairment	$	8,980			6,710		8,455		3,695		9,814		898		98		38,650
Loans acquired with deteriorated credit quality	$	—			—		—		—		—		—		—		—
Loans receivable as of September 30, 2014:
Ending balance - total	$	170,648			266,419		860,218		198,977		752,108		43,741		—		2,292,111
Unamortized net deferred loan costs																	730
Total non-covered loans																$	2,292,841
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	972			8,613		24,233		481		20,128		34		—		54,461
Collectively evaluated for impairment	$	169,676			257,806		835,985		198,496		731,316		43,707		—		2,236,986
Loans acquired with deteriorated credit quality	$	—			—		—		—		664		—		—		664

The following table presents the activity in the allowance for loan losses for covered loans for the three and nine months ended September 30, 2015.

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2015
Beginning balance	$	1,935
Charge-offs		(84	)
Recoveries		1,730
Provisions		(1,681	)
Ending balance	$	1,900
As of and for the nine months ended September 30, 2015
Beginning balance	$	2,281
Charge-offs		(1,200	)
Recoveries		2,928
Provisions		(2,109	)
Ending balance	$	1,900
Ending balances as of September 30, 2015: Allowance for loan losses
Individually evaluated for impairment	$	466
Collectively evaluated for impairment		1,391
Loans acquired with deteriorated credit quality		43
Loans receivable as of September 30, 2015:
Ending balance – total	$	106,609
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$	5,197
Collectively evaluated for impairment		99,892
Loans acquired with deteriorated credit quality		1,520

The following table presents the activity in the allowance for loan losses for covered loans for the year ended December 31, 2014.

($ in thousands)	Covered Loans
As of and for the year ended December 31, 2014
Beginning balance	$	4,242
Charge-offs		(6,948	)
Recoveries		3,616
Transferred to non-covered		(1,737	)
Provisions		3,108
Ending balance	$	2,281
Ending balances as of December 31, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,161
Collectively evaluated for impairment		1,046
Loans acquired with deteriorated credit quality		74
Loans receivable as of December 31, 2014:
Ending balance – total	$	127,594
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	11,484
Collectively evaluated for impairment		114,160
Loans acquired with deteriorated credit quality		1,950

The following table presents the activity in the allowance for loan losses for covered loans for the three and nine months ended September 30, 2014.

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2014
Beginning balance	$	3,830
Charge-offs		(195	)
Recoveries		463
Transferred to non-covered		(1,737	)
Provisions		206
Ending balance	$	2,567
As of and for the nine months ended September 30, 2014
Beginning balance	$	4,242
Charge-offs		(5,865	)
Recoveries		3,010
Transferred to non-covered		(1,737	)
Provisions		2,917
Ending balance	$	2,567
Ending balances as of September 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,537
Collectively evaluated for impairment		1,003
Loans acquired with deteriorated credit quality		27
Loans receivable as of September 30, 2014:
Ending balance – total	$	133,249
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	11,258
Collectively evaluated for impairment		119,953
Loans acquired with deteriorated credit quality		2,038

The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2015.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	271		311		—		102
Commercial - secured		92		95		—		56
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		3,729		7,090		—		4,716
Real estate – residential, farmland, and multi-family		9,466		10,839		—		9,548
Real estate – home equity lines of credit		—		—		—		119
Real estate – commercial		12,531		14,149		—		15,731
Consumer		—		—		—		2
Total non-covered impaired loans with no allowance	$	26,089		32,484		—		30,274
Total covered impaired loans with no allowance	$	3,742		7,380		—		5,701
Total impaired loans with no allowance recorded	$	29,831		39,864		—		35,975
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	148		155		43		139
Commercial - secured		475		496		92		538
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		956		1,002		250		1,363
Real estate – residential, farmland, and multi-family		14,133		14,526		1,575		14,194
Real estate – home equity lines of credit		—		—		—		—
Real estate – commercial		4,721		4,793		449		3,608
Consumer		—		—		—		—
Total non-covered impaired loans with allowance	$	20,433		20,972		2,409		19,842
Total covered impaired loans with allowance	$	2,975		3,268		509		3,874
Total impaired loans with an allowance recorded	$	23,408		24,240		2,918		23,716

Interest income recorded on non-covered and covered impaired loans during the nine months September 30, 2015 was insignificant.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	33		35		—		20
Commercial - secured		5		6		—		95
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		6,877		7,944		—		6,430
Real estate – residential, farmland, and multi-family		9,165		10,225		—		7,776
Real estate – home equity lines of credit		476		498		—		388
Real estate – commercial		17,409		20,786		—		11,911
Consumer		7		10		—		7
Total non-covered impaired loans with no allowance	$	33,972		39,504		—		26,627
Total covered impaired loans with no allowance	$	8,097		12,081		—		16,986
Total impaired loans with no allowance recorded	$	42,069		51,585		—		43,613
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	140		143		47		142
Commercial - secured		606		612		164		550
Secured by inventory and accounts receivable		—		—		—		15
Real estate – construction, land development & other land loans		1,114		3,243		415		1,487
Real estate – residential, farmland, and multi-family		14,845		15,257		1,686		14,418
Real estate – home equity lines of credit		—		—		—		4
Real estate – commercial		3,501		3,530		165		6,420
Consumer		—		—		—		8
Total non-covered impaired loans with allowance	$	20,206		22,785		2,477		23,044
Total covered impaired loans with allowance	$	5,220		5,719		1,229		8,513
Total impaired loans with an allowance recorded	$	25,426		28,504		3,706		31,557

Interest income recorded on non-covered and covered impaired loans during the year ended December 31, 2014 was insignificant. 

The Company tracks credit quality based on its internal risk ratings.  Upon origination a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower's credit score, the loan-to-value ratio, the debt-to-income ratio, etc.  Loans that are risk-graded as substandard during the origination process are declined.  After loans are initially graded, they are monitored monthly 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:

	Numerical Risk Grade	Description
Pass:
	1	Loans with virtually no risk, including cash secured loans.
	2	Loans with documented significant overall financial strength, including non-cash secured or unsecured loans that have no minor or major exceptions to the lending guidelines.
	3	Loans with documented satisfactory overall financial strength, including non-cash secured or unsecured loans that have no major exceptions to the lending guidelines.  If unsecured, loans would include support of a strong guarantor or co-maker.
	4	Loans to borrowers with acceptable financial condition, including non-cash secured or unsecured loans that have minor or major exceptions to the lending guidelines, but the exceptions are properly mitigated.  Primary or secondary source of repayment is sufficient and if secured, loan would include the support of a satisfactory guarantor or co-maker.
Watch or Standard:
	9	Existing loans that meet the guidelines for a Risk Graded 5 loan, except the collateral coverage is sufficient to satisfy the debt with no risk of loss under reasonable circumstances.
Special Mention:
	5	Existing loans with major exceptions that cannot be mitigated.  Potential for loss is possible.
Classified:
	6	Loans that have a well-defined weakness that may jeopardize the liquidation of the debt if deficiencies are not corrected.  Loss is not only possible, but probable.
	7	Loans that have a well-defined weakness that make the collection or liquidation improbable.  Loss appears imminent, but the exact amount and timing is uncertain.
	8	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.

The following table presents the Company's recorded investment in loans by credit quality indicators as of September 30, 2015.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	28,490		19,737		—		1,161		671		470		50,529
Commercial - secured		54,927		55,401		32		3,224		2,250		2,253		118,087
Secured by inventory and accounts receivable		13,154		19,525		—		273		591		84		33,627
Real estate – construction, land development & other land loans		96,745		151,784		679		12,355		8,467		5,374		275,404
Real estate – residential, farmland, and multi-family		213,179		535,203		4,420		44,175		32,459		21,936		851,372
Real estate – home equity lines of credit		129,421		60,464		1,412		5,067		4,144		2,110		202,618
Real estate - commercial		281,428		461,060		8,102		26,880		11,959		9,762		799,191
Consumer		29,371		12,841		52		400		479		358		43,501
Total	$	846,715		1,316,015		14,697		93,535		61,020		42,347		2,374,329
Unamortized net deferred loan costs														765
Total non-covered  loans													$	2,375,094
Total covered loans	$	12,332		61,065		253		8,505		19,081		5,373		106,609
Total loans	$	859,047		1,377,080		14,950		102,040		80,101		47,720		2,481,703

At September 30, 2015, there was an insignificant amount of loans that were graded “8” with an accruing status.

The following table presents the Company's recorded investment in loans by credit quality indicators as of December 31, 2014.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	17,856		15,649		5		1,356		2,231		187		37,284
Commercial - secured		32,812		62,361		62		4,481		4,331		2,927		106,974
Secured by inventory and accounts receivable		10,815		9,928		—		767		506		454		22,470
Real estate – construction, land development & other land loans		87,806		135,072		771		13,066		12,909		7,891		257,515
Real estate – residential, farmland, and multi-family		221,581		520,790		4,536		40,993		34,474		24,459		846,833
Real estate – home equity lines of credit		122,528		62,642		1,135		5,166		4,533		2,573		198,577
Real estate - commercial		223,197		465,395		9,057		30,318		15,748		11,070		754,785
Consumer		25,520		15,614		54		855		648		505		43,196
Total	$	742,115		1,287,451		15,620		97,002		75,380		50,066		2,267,634
Unamortized net deferred loan costs														946
Total non-covered  loans													$	2,268,580
Total covered loans	$	14,349		70,989		632		10,503		20,613		10,508		127,594
Total loans	$	756,464		1,358,440		16,252		107,505		95,993		60,574		2,396,174

At December 31, 2014, there was an insignificant amount of loans that were graded “8” with an accruing status.

Troubled Debt Restructurings

The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession.  Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. 

The vast majority of the Company's troubled debt restructurings modified during the periods ended September 30, 2015 and 2014 related to interest rate reductions combined with restructured amortization schedules. The Company does not generally grant principal forgiveness.

All loans classified as troubled debt restructurings are considered to be impaired and are evaluated as such for determination of the allowance for loan losses.  The Company's troubled debt restructurings can be classified as either nonaccrual or accruing based on the loan's payment status.  The troubled debt restructurings that are nonaccrual are reported within the nonaccrual loan totals presented previously.  

The following table presents information related to loans modified in a troubled debt restructuring during the three months ended September 30, 2015 and 2014.

($ in thousands)	For the three months ended						For the three months ended
	September 30, 2015						September 30, 2014
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances		Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—	$	—		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		1		21		21		1		36		36
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		1		390		390		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		1		95		95		3		275		275
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		6		1,236		1,236		5		326		326
Total covered TDRs arising during period  – Accruing		—	$	—	$	—		1	$	680	$	667
Total covered TDRs arising during period – Nonaccrual		—		—		—		2		150		145
Total TDRs arising during period		6	$	1,236	$	1,236		8	$	1,156	$	1,138

The following table presents information related to loans modified in a troubled debt restructuring during the nine months ended September 30, 2015 and 2014.

($ in thousands)	For the nine months ended September 30, 2015						For the nine months ended September 30, 2014
	Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	8	$	8		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		3		286		286		8		784		784
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		2		441		441		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		5		400		400		7		713		713
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		14		1,865		1,865		16		1,512		1,512
Total covered TDRs arising during period– Accruing		2	$	139	$	139		3	$	928	$	912
Total covered TDRs arising during period – Nonaccrual		—		—		—		7		860		827
Total TDRs arising during period		16	$	2,004	$	2,004		26	$	3,300	$	3,251

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three months ended September 30, 2015 and 2014 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.

($ in thousands)	For the three months ended				For the three months ended
	September 30, 2015				September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—		—	$	—
Real estate – construction, land development & other land loans		—		—		—		—
Real estate – residential, farmland, and multi-family		1		152		—		—
Real estate – commercial		—		—		—		—
Total non-covered TDRs that subsequently defaulted		1	$	152		—	$	—
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		1	$	152		—	$	—

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the nine months ended September 30, 2015 and 2014 are presented in the table below.

($ in thousands)	For the nine months ended September 30, 2015				For the nine months ended September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	7		—	$	—
Real estate – construction, land development & other land loans		—		—		1		5
Real estate – residential, farmland, and multi-family		2		186		—		—
Real estate – commercial		—		—		1		71
Total non-covered TDRs that subsequently defaulted		3	$	193		2	$	76
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		3	$	193		2	$	76

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Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amortization expense of intangible assets	$ 181	$ 194	$ 541	$ 582

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2015

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 5 – Earnings Per Common Share

Basic Earnings Per Common Share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period.  Currently, the Company's potentially dilutive common stock issuances relate to stock option grants under the Company's equity-based compensation plans and the Company's Series C Preferred Stock, which is convertible into common stock on a one-for-one ratio.

In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows.  As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period.  The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities.  As it relates to the Series C Preferred Stock, it is assumed that the preferred stock was converted to common stock during the reporting period.  Dividends on the preferred stock are added back to net income and the shares assumed to be converted are included in the number of shares outstanding.

If any of the potentially dilutive common stock issuances have an anti-dilutive effect, which is the case when a net loss is reported, the potentially dilutive common stock issuance is disregarded.

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

	For the Three Months Ended September 30,
	2015						2014
($ in thousands except per    share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	6,868		19,781,789	$	0.35	$	5,362		19,705,514	$	0.27
Effect of Dilutive Securities		58		731,170				58		732,225
Diluted EPS per common share	$	6,926		20,512,959	$	0.34	$	5,420		20,437,739	$	0.27

	For the Nine Months Ended September 30,
	2015						2014
($ in thousands except per     share amounts)	Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount		Income (Numer- ator)		Shares (Denom- inator)		Per Share Amount
Basic EPS
Net income available to common shareholders	$	19,671		19,760,807	$	1.00	$	17,250		19,697,426	$	0.88
Effect of Dilutive Securities		175		731,166				175		734,410
Diluted EPS per common share	$	19,846		20,491,973	$	0.97	$	17,425		20,431,836	$	0.85

For both the three and nine months ended September 30, 2015, there were 52,500 options that were antidilutive because the exercise price exceeded the average market price for the period, and thus are not included in the calculation to determine the effect of dilutive securities. For both the three and nine months ended September 30, 2014, there were 93,000 options that were anti-dilutive. Also, for both the three and nine months ended September 30, 2014, the Company excluded 75,000 options that had an exercise price below the average market price for the period, but had performance vesting requirements that the Company concluded were not probable to vest. 

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Securities

9 Months Ended

Sep. 30, 2015

Securities [Abstract]

Securities

Note 6 – Securities

The book values and approximate fair values of investment securities at September 30, 2015 and December 31, 2014 are summarized as follows:

	September 30, 2015									December 31, 2014
	Amortized		Fair		Unrealized					Amortized		Fair		Unrealized
($ in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Securities available for sale:
Government-sponsored enterprise securities	$	27,789		27,850		69		(8	)		27,546		27,521		33		(58	)
Mortgage-backed securities		126,508		125,836		520		(1,192	)		130,073		129,510		751		(1,314	)
Corporate bonds		25,223		24,948		4		(279	)		1,000		865		—		(135	)
Equity securities		88		131		54		(11	)		89		122		46		(13	)
Total available for sale	$	179,608		178,765		647		(1,490	)		158,708		158,018		830		(1,520	)
Securities held to maturity:
Mortgage-backed securities	$	107,787		107,360		—		(427	)		124,924		124,861		45		(108	)
State and local governments		52,261		55,498		3,258		(21	)		53,763		57,550		3,787		—
Total held to maturity	$	160,048		162,858		3,258		(448	)		178,687		182,411		3,832		(108	)

Included in mortgage-backed securities at September 30, 2015 were collateralized mortgage obligations with an amortized cost of $56,000 and a fair value of $57,000. Included in mortgage-backed securities at December 31, 2014 were collateralized mortgage obligations with an amortized cost of $108,000 and a fair value of $111,000.  All of the Company's mortgage-backed securities, including the collateralized mortgage obligations, were issued by government-sponsored corporations.

The following table presents information regarding securities with unrealized losses at September 30, 2015:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	—		—		2,991		8		2,991		8
Mortgage-backed securities		141,334		685		31,578		934		172,912		1,619
Corporate bonds		21,991		219		940		60		22,931		279
Equity securities		—		—		22		11		22		11
State and local governments		829		21		—		—		829		21
Total temporarily impaired securities	$	164,154		925		35,531		1,013		199,685		1,938

The following table presents information regarding securities with unrealized losses at December 31, 2014:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	5,489		11		2,953		47		8,442		58
Mortgage-backed securities		69,985		318		33,557		1,104		103,542		1,422
Corporate bonds		—		—		865		135		865		135
Equity securities		—		—		17		13		17		13
State and local governments		—		—		—		—		—		—
Total temporarily impaired securities	$	75,474		329		37,392		1,299		112,866		1,628

In the above tables, all of the non-equity securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. The Company has evaluated the collectability of each of these bonds and has concluded that there is no other-than-temporary impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The Company has also concluded that each of the equity securities in an unrealized loss position at September 30, 2015 and December 31, 2014 was in such a position due to temporary fluctuations in the market prices of the securities. The Company's policy is to record an impairment charge for any of these equity securities that remains in an unrealized loss position for twelve consecutive months unless the amount is insignificant.

The book values and approximate fair values of investment securities at September 30, 2015, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
($ in thousands)	Cost		Value		Cost		Value
Debt securities
Due within one year	$	—		—		772		780
Due after one year but within five years		27,789		27,850		12,734		13,446
Due after five years but within ten years		20,223		20,088		37,320		39,847
Due after ten years		5,000		4,860		1,435		1,425
Mortgage-backed securities		126,508		125,836		107,787		107,360
Total debt securities		179,520		178,634		160,048		162,858
Equity securities		88		131		—		—
Total securities	$	179,608		178,765		160,048		162,858

At September 30, 2015 and December 31, 2014 investment securities with carrying values of $135,652,000 and $100,113,000, respectively, were pledged as collateral for public deposits. 

The Company recorded insignificant losses on securities during the three and nine month periods ended September 30, 2015. During the nine months ended September 30, 2014, the Company sold approximately $47,473,000 in securities and recorded a net gain of $786,000 related to the sale.

The aggregate carrying amount of cost-method investments was $15,468,000 and $6,016,000 at September 30, 2015 and December 31, 2014, respectively, which is recorded within the line item “other assets” on the Company's Consolidated Balance Sheets. These investments are comprised of both Federal Home Loan Bank (“FHLB”) stock and Federal Reserve Bank of Richmond (“FRB”) stock. The FHLB stock had a cost and fair value of $8,421,000 at September 30, 2015 and $6,016,000 at December 31, 2014, 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. Periodically the FHLB recalculates the Company's required level of holdings, and the Company either buys more stock or the FHLB redeems a portion of the stock at cost. The FRB stock had a cost and fair value of $7,047,000 at September 30, 2015. The Company was required to purchase this stock when it became a member of the Federal Reserve System in the second quarter of 2015. The Company determined that neither stock was impaired at either period end.

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Deferred Loan Costs

9 Months Ended

Sep. 30, 2015

Deferred Loan Costs [Abstract]

Deferred Loan Costs

Note 8 – Deferred Loan Costs

The amount of loans shown on the Consolidated Balance Sheets includes net deferred loan costs of approximately $765,000, $946,000, and $730,000 at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

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Pension Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Service cost - benefits earned during the period	$ 36	$ 69	$ 164	$ 204
Interest cost	393	418	1,177	1,255
Expected return on plan assets	$ (713)	$ (695)	$ (2,133)	$ (2,084)
Amortization of transition obligation
Amortization of net (gain)/loss	$ (16)	$ (56)	$ (63)	$ (166)
Amortization of prior service cost
Net periodic pension cost (income)	$ (300)	$ (264)	$ (855)	$ (791)
Pension Plan [Member]
Service cost - benefits earned during the period
Interest cost	$ 341	$ 365	$ 1,023	$ 1,096
Expected return on plan assets	$ (713)	$ (695)	$ (2,133)	$ (2,084)
Amortization of transition obligation
Amortization of net (gain)/loss
Amortization of prior service cost
Net periodic pension cost (income)	$ (372)	$ (330)	$ (1,110)	$ (988)
SERP [Member]
Service cost - benefits earned during the period	36	69	164	204
Interest cost	$ 52	$ 53	$ 154	$ 159
Expected return on plan assets
Amortization of transition obligation
Amortization of net (gain)/loss	$ (16)	$ (56)	$ (63)	$ (166)
Amortization of prior service cost
Net periodic pension cost (income)	$ 72	$ 66	$ 255	$ 197

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Comprehensive Income (Schedule of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accumulated other comprehensive income (loss), beginning balance	$ (578)	$ 1,900
Other comprehensive income (loss) before reclassifications	(94)	613
Amounts reclassified from accumulated other comprehensive income	(38)	(581)
Net current-period other comprehensive income (loss)	(132)	32
Accumulated other comprehensive income (loss), ending balance	(710)	1,932
Unrealized Gain (Loss) on Securities Available for Sale [Member]
Accumulated other comprehensive income (loss), beginning balance	(421)	(1,232)
Other comprehensive income (loss) before reclassifications	(94)	613
Amounts reclassified from accumulated other comprehensive income	1	(480)
Net current-period other comprehensive income (loss)	(93)	133
Accumulated other comprehensive income (loss), ending balance	(514)	(1,099)
Additional Pension Asset (Liability) [Member]
Accumulated other comprehensive income (loss), beginning balance	$ (157)	$ 3,132
Other comprehensive income (loss) before reclassifications
Amounts reclassified from accumulated other comprehensive income	$ (39)	$ (101)
Net current-period other comprehensive income (loss)	(39)	(101)
Accumulated other comprehensive income (loss), ending balance	$ (196)	$ 3,031

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Pension Plans (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension Plans [Abstract]
Net periodic pension cost (income)	$ (300)	$ (264)	$ (855)	$ (791)

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Equity-Based Compensation Plans (Schedule of Company's Stock Options Outstanding) (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) $ / shares shares
Weighted Average Exercise Price
Balance, beginning | $ / shares	$ 18.55
Granted | $ / shares
Exercised | $ / shares	$ 14.35
Forfeited | $ / shares
Expired | $ / shares	$ 20.07
Outstanding | $ / shares	18.05
Exercisable | $ / shares	$ 18.05
Number of shares:
Balance options outstanding, beginning	179,102
Granted
Exercised	(2,250)
Forfeited
Expired	(48,388)
Balance options outstanding, end	128,464
Exercisable, end of period	128,464
Weighted- Average Contractual Term (years), outstanding	2 years
Weighted- Average Contractual Term (years), exercisable	2 years
Aggregate Intrinsic Value, outstanding | $	$ 70,000
Aggregate Intrinsic Value, exercisable | $	$ 70,000

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Loans and Asset Quality Information (Schedule of Activity in Allowance for Loan Losses for Non-Covered Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Provisions	$ (1,414)	$ 1,485	$ (737)	$ 8,719
Loans receivable:
Ending balance - total	2,480,938	2,425,360	2,480,938	2,425,360	$ 2,395,228
Unamortized net deferred loan costs	765	730	765	730	946
Total non-covered loans	2,375,094	2,292,841	2,375,094	2,292,841	2,268,580
Non-covered [Member]
Beginning balance	30,155	41,966	38,345	44,263	44,263
Charge-offs	(3,644)	(3,750)	(14,407)	(11,472)	(16,288)
Recoveries	1,377	332	2,845	1,234	1,546
Transfers from covered category		1,737		1,737	1,737
Provisions	267	1,279	1,372	5,802	7,087
Ending balance	28,155	41,564	28,155	41,564	38,345
Ending balances: Allowance for loan losses
Individually evaluated for impairment	2,409	2,914	2,409	2,914	2,477
Collectively evaluated for impairment	25,746	38,650	25,746	38,650	35,868
Loans receivable:
Ending balance - total	2,374,329	2,292,111	2,374,329	2,292,111	2,267,634
Unamortized net deferred loan costs	765	730	765	730	946
Total non-covered loans	2,375,094	2,292,841	2,375,094	2,292,841	2,268,580
Ending balances: Loans
Individually evaluated for impairment	45,925	54,461	45,925	54,461	53,531
Collectively evaluated for impairment	$ 2,327,807	$ 2,236,986	$ 2,327,807	$ 2,236,986	$ 2,213,456
Non-covered [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality	$ 597	$ 664	$ 597	$ 664	$ 647
Total Non Covered [Member]
Loans receivable:
Total non-covered loans	2,374,329		2,374,329		2,267,634
Commercial, financial and agricultural [Member]
Beginning balance	5,564	8,948	8,391	7,432	7,432
Charge-offs	(523)	(840)	(3,550)	(3,506)	(4,039)
Recoveries	387	32	735	81	140
Transfers from covered category		36		36	36
Provisions	(185)	1,185	(333)	5,318	4,822
Ending balance	5,243	9,361	5,243	9,361	8,391
Ending balances: Allowance for loan losses
Individually evaluated for impairment	135	381	135	381	211
Collectively evaluated for impairment	5,108	8,980	5,108	8,980	8,180
Loans receivable:
Ending balance - total	199,630	165,215	199,630	165,215	160,878
Ending balances: Loans
Individually evaluated for impairment	986	972	986	972	784
Collectively evaluated for impairment	$ 201,257	$ 169,676	$ 201,257	$ 169,676	$ 165,944
Commercial, financial and agricultural [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Commercial, financial and agricultural [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	$ 202,243	$ 170,648	$ 202,243	$ 170,648	$ 166,728
Real Estate construction, land development and other land loans [Member]
Beginning balance	5,016	7,414	6,470	12,966	12,966
Charge-offs	(574)	(470)	(2,532)	(1,704)	(2,148)
Recoveries	625	40	942	349	398
Transfers from covered category		813		813	813
Provisions	(1,105)	(574)	(918)	(5,201)	(5,559)
Ending balance	3,962	7,223	3,962	7,223	6,470
Ending balances: Allowance for loan losses
Individually evaluated for impairment	250	513	250	513	415
Collectively evaluated for impairment	3,712	6,710	3,712	6,710	6,055
Loans receivable:
Ending balance - total	294,426	298,091	294,426	298,091	288,148
Ending balances: Loans
Individually evaluated for impairment	4,685	8,613	4,685	8,613	7,991
Collectively evaluated for impairment	$ 270,719	$ 257,806	$ 270,719	$ 257,806	$ 249,524
Real Estate construction, land development and other land loans [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Real Estate construction, land development and other land loans [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	$ 275,404	$ 266,419	$ 275,404	$ 266,419	$ 257,515
Real estate residential, farmland and mutli-family [Member]
Beginning balance	9,641	11,132	9,720	15,142	15,142
Charge-offs	(1,949)	(874)	(4,362)	(2,505)	(4,417)
Recoveries	98	111	270	290	331
Transfers from covered category		51		51	51
Provisions	1,341	(194)	3,503	(2,752)	(1,387)
Ending balance	9,131	10,226	9,131	10,226	9,720
Ending balances: Allowance for loan losses
Individually evaluated for impairment	1,575	1,771	1,575	1,771	1,686
Collectively evaluated for impairment	7,556	8,455	7,556	8,455	8,034
Ending balances: Loans
Individually evaluated for impairment	23,599	24,233	23,599	24,233	20,263
Collectively evaluated for impairment	$ 827,773	$ 835,985	$ 827,773	$ 835,985	$ 733,875
Real estate residential, farmland and mutli-family [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Real estate residential, farmland and mutli-family [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	$ 851,372	$ 860,218	$ 851,372	$ 860,218	$ 846,833
Total non-covered loans	851,372		851,372		846,833
Real estate home equity lines of credit [Member]
Beginning balance	3,167	3,755	3,731	1,838	1,838
Charge-offs	(31)	(116)	(594)	(619)	(912)
Recoveries	43	$ 7	88	$ 18	$ 45
Transfers from covered category
Provisions	(565)	$ 49	(611)	$ 2,458	$ 2,760
Ending balance	$ 2,614	$ 3,695	$ 2,614	$ 3,695	$ 3,731
Ending balances: Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	$ 2,614	$ 3,695	$ 2,614	$ 3,695	$ 3,731
Ending balances: Loans
Individually evaluated for impairment		481		481	476
Collectively evaluated for impairment	$ 202,618	$ 198,496	$ 202,618	$ 198,496	$ 198,101
Real estate home equity lines of credit [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Real estate home equity lines of credit [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	$ 202,618	$ 198,977	$ 202,618	$ 198,977	$ 198,577
Total non-covered loans	202,618		202,618		198,577
Real estate mortgage commercial and other [Member]
Beginning balance	4,723	9,212	9,045	5,524	5,524
Charge-offs	(198)	(987)	(2,147)	(1,876)	(3,048)
Recoveries	140	14	535	135	181
Transfers from covered category		833		833	833
Provisions	249	971	(2,519)	5,427	5,555
Ending balance	4,914	10,043	4,914	10,043	9,045
Ending balances: Allowance for loan losses
Individually evaluated for impairment	449	229	449	229	165
Collectively evaluated for impairment	4,465	9,814	4,465	9,814	8,880
Loans receivable:
Ending balance - total	944,432	879,122	944,432	879,122	882,127
Ending balances: Loans
Individually evaluated for impairment	16,655	20,128	16,655	20,128	20,263
Collectively evaluated for impairment	$ 781,939	$ 731,316	$ 781,939	$ 731,316	$ 733,875
Real estate mortgage commercial and other [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality	$ 597	$ 664	$ 597	$ 664	$ 647
Real estate mortgage commercial and other [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	799,191	752,108	799,191	752,108	754,785
Consumer [Member]
Beginning balance	948	906	841	1,513	1,513
Charge-offs	(369)	(463)	(1,222)	(1,262)	(1,724)
Recoveries	84	128	275	361	451
Transfers from covered category		4		4	4
Provisions	216	343	985	302	597
Ending balance	$ 879	918	$ 879	918	$ 841
Ending balances: Allowance for loan losses
Individually evaluated for impairment		20		20
Collectively evaluated for impairment	$ 879	898	$ 879	898	$ 841
Ending balances: Loans
Individually evaluated for impairment		34		34	7
Collectively evaluated for impairment	$ 43,501	$ 43,707	$ 43,501	$ 43,707	$ 43,189
Consumer [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Consumer [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total	$ 43,501	$ 43,741	$ 43,501	$ 43,741	$ 43,196
Total non-covered loans	43,501		43,501		43,196
Unallocated [Member]
Beginning balance	$ 1,096	$ 599	$ 147	$ (152)	$ (152)
Charge-offs
Recoveries
Transfers from covered category
Provisions	$ 316	$ (501)	$ 1,265	$ 250	$ 299
Ending balance	$ 1,412	$ 98	$ 1,412	$ 98	$ 147
Ending balances: Allowance for loan losses
Individually evaluated for impairment
Collectively evaluated for impairment	$ 1,412	$ 98	$ 1,412	$ 98	$ 147
Ending balances: Loans
Individually evaluated for impairment
Collectively evaluated for impairment
Unallocated [Member] | Receivables acquired with deteriorated credit quality [Member]
Beginning balance
Ending balance
Ending balances: Loans
Loans acquired with deteriorated credit quality
Unallocated [Member] | Non-covered [Member]
Loans receivable:
Ending balance - total

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Fair Value

9 Months Ended

Sep. 30, 2015

Fair Value [Abstract]

Fair Value

Note 13 – Fair Value

Relevant accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

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

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

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

The following table summarizes the Company's financial instruments that were measured at fair value on a recurring and nonrecurring basis at September 30, 2015.

($ in thousands)
Description of Financial Instruments	Fair Value at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,850		––		27,850		—
Mortgage-backed securities		125,836		––		125,836		––
Corporate bonds		24,948		––		24,948		––
Equity securities		131		––		131		––
Total available for sale securities	$	178,765		––		178,765		––
Nonrecurring
Impaired loans – covered	$	2,466		—		—		2,466
Impaired loans – non-covered		18,415		––		––		18,415
Foreclosed real estate – covered		1,569		—		––		1,569
Foreclosed real estate – non-covered		9,304		––		––		9,304

The following table summarizes the Company's financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2014.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	27,521		––		27,521		—
Mortgage-backed securities		129,510		––		129,510		––
Corporate bonds		865		––		865		––
Equity securities		122		––		122		––
Total available for sale securities	$	158,018		––		158,018		––
Nonrecurring
Impaired loans – covered	$	3,991		—		—		3,991
Impaired loans – non-covered		18,035		––		––		18,035
Foreclosed real estate – covered		2,350		—		––		2,350
Foreclosed real estate – non-covered		9,771		––		––		9,771

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

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

The Company reviews the pricing methodologies utilized by the bond accounting provider to ensure the fair value determination is consistent with the applicable accounting guidance and that the investments are properly classified in the fair value hierarchy. Further, the Company validates the fair values for a sample of securities in the portfolio by comparing the fair values provided by the bond accounting provider to prices from other independent sources for the same or similar securities. The Company analyzes unusual or significant variances and conducts additional research with the portfolio manager, if necessary, and takes appropriate action based on its findings.

Impaired loans — Fair values for impaired loans in the above tables are measured on a non-recurring basis are based on the underlying collateral values securing the loans, adjusting for estimated selling costs, or the net present value of the cash flows expected to be received for such loans. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined using an income or market valuation approach based on an appraisal conducted by an independent, licensed third party appraiser (Level 3). The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable borrower's financial statements if not considered significant. Likewise, values for inventory and accounts receivable collateral are based on borrower financial statement balances or aging reports on a discounted basis as appropriate (Level 3). Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income.

Foreclosed real estate – Foreclosed real estate, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value. Fair value is measured on a non-recurring basis and is based upon independent market prices or current appraisals that are generally prepared using an income or market valuation approach and conducted by an independent, licensed third party appraiser, adjusted for estimated selling costs (Level 3). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. For any real estate valuations subsequent to foreclosure, any excess of the real estate recorded value over the fair value of the real estate is treated as a foreclosed real estate write-down on the Consolidated Statements of Income.

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2015, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at September 30, 2015		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	2,466	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,415	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		1,569	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,304	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2014		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	3,991	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		18,035	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate – covered		2,350	Appraised value; independent market prices	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		9,771	Appraised value; independent market prices	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

Transfers of assets or liabilities between levels within the fair value hierarchy are recognized when an event or change in circumstances occurs. There were no transfers between Level 1 and Level 2 for assets or liabilities measured on a recurring basis during the three or nine months ended September 30, 2015 or 2014.

For the nine months ended September 30, 2015, the decrease in the fair value of securities available for sale was $153,000, which is included in other comprehensive income (loss) (net of tax benefit of $60,000). For the nine months ended September 30, 2014, the increase in the fair value of securities available for sale was $218,000, which is included in other comprehensive income (net of tax expense of $85,000). Fair value measurement methods at September 30, 2015 and 2014 are consistent with those used in prior reporting periods.

The carrying amounts and estimated fair values of financial instruments at September 30, 2015 and December 31, 2014 are as follows:

		September 30, 2015				December 31, 2014
($ 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	$	52,788		52,788		81,068		81,068
Due from banks, interest-bearing	Level 1		165,271		165,271		171,248		171,248
Federal funds sold	Level 1		730		730		768		768
Securities available for sale	Level 2		178,765		178,765		158,018		158,018
Securities held to maturity	Level 2		160,048		162,858		178,687		182,411
Presold mortgages in process of settlement	Level 1		3,150		3,150		6,019		6,019
Total loans, net of allowance	Level 3		2,451,648		2,442,464		2,355,548		2,328,244
Accrued interest receivable	Level 1		9,008		9,008		8,920		8,920
FDIC indemnification asset	Level 3		7,649		7,541		22,569		21,856
Bank-owned life insurance	Level 1		56,557		56,557		55,421		55,421
Deposits	Level 2		2,707,753		2,707,338		2,695,906		2,696,153
Borrowings	Level 2		176,394		168,091		116,394		105,407
Accrued interest payable	Level 2		588		588		686		686

Fair value methods and assumptions are set forth below for the Company's financial instruments.

Cash and Amounts Due from Banks, Federal Funds Sold, Presold Mortgages in Process of Settlement, Accrued Interest Receivable, and Accrued Interest Payable  The carrying amounts approximate their fair value because of the short maturity of these financial instruments.

Available for Sale and Held to Maturity Securities  Fair values are provided by a third-party and are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or matrix pricing.

Loans - For nonimpaired loans, fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, financial and agricultural, real estate construction, real estate mortgages and installment loans to individuals. Each loan category is further segmented into fixed and variable interest rate terms. The fair value for each category is determined by discounting scheduled future cash flows using current interest rates offered on loans with similar risk characteristics. Fair values for impaired loans are primarily based on estimated proceeds expected upon liquidation of the collateral or the present value of expected cash flows. Fair value for nonimpaired and impaired loans is presented net of the respective allowance for loan losses.

FDIC Indemnification Asset – Fair value is equal to the FDIC reimbursement rate of the expected losses to be incurred and reimbursed by the FDIC and then discounted over the estimated period of receipt.

Bank-Owned Life Insurance – The carrying value of life insurance approximates fair value because this investment is carried at cash surrender value, as determined by the issuer.

Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing checking accounts, savings accounts, interest-bearing checking accounts, and money market accounts, is equal to the amount payable on demand as of the valuation date. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered in the marketplace for deposits of similar remaining maturities.

Borrowings - The fair value of borrowings is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered by the Company's lenders for debt of similar remaining maturities.

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

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include net premises and equipment, intangible and other assets such as deferred income taxes, prepaid expense accounts, income taxes currently payable and other various accrued expenses. In addition, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

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Securities (Tables)

9 Months Ended

Sep. 30, 2015

Securities [Abstract]

Book values and approximate fair values of investment securities

	September 30, 2015									December 31, 2014
	Amortized		Fair		Unrealized					Amortized		Fair		Unrealized
($ in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Securities available for sale:
Government-sponsored enterprise securities	$	27,789		27,850		69		(8	)		27,546		27,521		33		(58	)
Mortgage-backed securities		126,508		125,836		520		(1,192	)		130,073		129,510		751		(1,314	)
Corporate bonds		25,223		24,948		4		(279	)		1,000		865		—		(135	)
Equity securities		88		131		54		(11	)		89		122		46		(13	)
Total available for sale	$	179,608		178,765		647		(1,490	)		158,708		158,018		830		(1,520	)
Securities held to maturity:
Mortgage-backed securities	$	107,787		107,360		—		(427	)		124,924		124,861		45		(108	)
State and local governments		52,261		55,498		3,258		(21	)		53,763		57,550		3,787		—
Total held to maturity	$	160,048		162,858		3,258		(448	)		178,687		182,411		3,832		(108	)

Schedule of information regarding securities with unrealized losses

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	—		—		2,991		8		2,991		8
Mortgage-backed securities		141,334		685		31,578		934		172,912		1,619
Corporate bonds		21,991		219		940		60		22,931		279
Equity securities		—		—		22		11		22		11
State and local governments		829		21		—		—		829		21
Total temporarily impaired securities	$	164,154		925		35,531		1,013		199,685		1,938

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	5,489		11		2,953		47		8,442		58
Mortgage-backed securities		69,985		318		33,557		1,104		103,542		1,422
Corporate bonds		—		—		865		135		865		135
Equity securities		—		—		17		13		17		13
State and local governments		—		—		—		—		—		—
Total temporarily impaired securities	$	75,474		329		37,392		1,299		112,866		1,628

Schedule of book values and approximate fair values of investment securities by contractual maturity

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
($ in thousands)	Cost		Value		Cost		Value
Debt securities
Due within one year	$	—		—		772		780
Due after one year but within five years		27,789		27,850		12,734		13,446
Due after five years but within ten years		20,223		20,088		37,320		39,847
Due after ten years		5,000		4,860		1,435		1,425
Mortgage-backed securities		126,508		125,836		107,787		107,360
Total debt securities		179,520		178,634		160,048		162,858
Equity securities		88		131		—		—
Total securities	$	179,608		178,765		160,048		162,858

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Loans and Asset Quality Information (Schedule of Nonaccrual Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Company's nonaccrual loans:
Nonaccrual loans	$ 47,720	$ 60,574
Commercial Unsecured [Member]
Company's nonaccrual loans:
Nonaccrual loans	492	188
Commercial Secured [Member]
Company's nonaccrual loans:
Nonaccrual loans	2,253	2,927
Secured by Inventory and Accounts Receivable [Member]
Company's nonaccrual loans:
Nonaccrual loans	107	557
Real Estate construction, land development and other land loans [Member]
Company's nonaccrual loans:
Nonaccrual loans	5,434	9,031
Real estate residential, farmland and mutli-family [Member]
Company's nonaccrual loans:
Nonaccrual loans	25,206	32,244
Real estate home equity lines of credit [Member]
Company's nonaccrual loans:
Nonaccrual loans	2,472	2,851
Real estate commercial [Member]
Company's nonaccrual loans:
Nonaccrual loans	11,398	12,271
Consumer [Member]
Company's nonaccrual loans:
Nonaccrual loans	358	505
Non-covered [Member]
Company's nonaccrual loans:
Nonaccrual loans	42,347	50,066
Non-covered [Member] | Commercial Unsecured [Member]
Company's nonaccrual loans:
Nonaccrual loans	470	187
Non-covered [Member] | Commercial Secured [Member]
Company's nonaccrual loans:
Nonaccrual loans	2,253	2,927
Non-covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Company's nonaccrual loans:
Nonaccrual loans	84	454
Non-covered [Member] | Real Estate construction, land development and other land loans [Member]
Company's nonaccrual loans:
Nonaccrual loans	5,374	7,891
Non-covered [Member] | Real estate residential, farmland and mutli-family [Member]
Company's nonaccrual loans:
Nonaccrual loans	21,936	24,459
Non-covered [Member] | Real estate home equity lines of credit [Member]
Company's nonaccrual loans:
Nonaccrual loans	2,110	2,573
Non-covered [Member] | Real estate commercial [Member]
Company's nonaccrual loans:
Nonaccrual loans	9,762	11,070
Non-covered [Member] | Consumer [Member]
Company's nonaccrual loans:
Nonaccrual loans	358	505
Covered [Member]
Company's nonaccrual loans:
Nonaccrual loans	5,373	10,508
Covered [Member] | Commercial Unsecured [Member]
Company's nonaccrual loans:
Nonaccrual loans	$ 22	$ 1
Covered [Member] | Commercial Secured [Member]
Company's nonaccrual loans:
Nonaccrual loans
Covered [Member] | Secured by Inventory and Accounts Receivable [Member]
Company's nonaccrual loans:
Nonaccrual loans	$ 23	$ 103
Covered [Member] | Real Estate construction, land development and other land loans [Member]
Company's nonaccrual loans:
Nonaccrual loans	60	1,140
Covered [Member] | Real estate residential, farmland and mutli-family [Member]
Company's nonaccrual loans:
Nonaccrual loans	3,270	7,785
Covered [Member] | Real estate home equity lines of credit [Member]
Company's nonaccrual loans:
Nonaccrual loans	362	278
Covered [Member] | Real estate commercial [Member]
Company's nonaccrual loans:
Nonaccrual loans	$ 1,636	$ 1,201
Covered [Member] | Consumer [Member]
Company's nonaccrual loans:
Nonaccrual loans

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Securities (Schedule of Book Values and Fair Values of Investment Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Securities Available for Sale - Amortized Cost
Due within one year
Due after one year but within five years	$ 27,789
Due after five years but within ten years	20,223
Due after ten years	5,000
Mortgage-backed securities	126,508
Total debt securities	179,520
Equity securities	88
Total securities	$ 179,608	$ 158,708
Securities Available for Sale - Fair Value
Due within one year
Due after one year but within five years	$ 27,850
Due after five years but within ten years	20,088
Due after ten years	4,860
Mortgage-backed securities	125,836
Total debt securities	178,634
Equity securities	131
Total securities	178,765	158,018	$ 153,238
Securities Held to Maturity - Amortized Cost
Due within one year	772
Due after one year but within five years	12,734
Due after five years but within ten years	37,320
Due after ten years	1,435
Mortgage-backed securities	107,787
Total debt securities	160,048	178,687	53,821
Total securities	160,048
Securities Held to Maturity - Fair Value
Due within one year	780
Due after one year but within five years	13,446
Due after five years but within ten years	39,847
Due after ten years	1,425
Mortgage-backed securities	107,360
Total debt securities	162,858
Securities held to maturity	$ 162,858	$ 182,411	$ 57,601

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 7,005	$ 5,579	$ 20,237	$ 17,901
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period, pretax	589	(47)	(154)	1,004
Tax (expense) benefit	(231)	$ 19	60	(391)
Reclassification to realized (gains) losses	$ 1		$ 1	(786)
Tax expense (benefit)				306
Postretirement Plans:
Amortization of unrecognized net actuarial (gain) loss	$ (16)	$ (56)	$ (63)	(166)
Tax expense (benefit)	6	(2)	24	65
Other comprehensive income (loss)	349	(86)	(132)	32
Comprehensive income	$ 7,354	$ 5,493	$ 20,105	$ 17,933

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Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Accounting Policies

Note 2 – Accounting Policies

Note 1 to the 2014 Annual Report on Form 10-K filed with the SEC contains a description of the accounting policies followed by the Company and discussion of recent accounting pronouncements.  The following paragraphs update that information as necessary.

In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Equity Method and Joint Ventures topic of the Accounting Standards Codification. The amendments provide criteria that must be met in order to apply a proportional amortization method to Low-Income Housing Tax Credit investments and provide guidance on the method used to amortize the investment, the impairment approach, and the eligibility criteria for entities that have other arrangements (e.g., loans) with the limited liability entity. The amendments were effective for the Company on January 1, 2015 for new investments in qualified affordable housing projects. These amendments did not have a material effect on the Company's financial statements.

In January 2014, the FASB amended the Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (“OREO”). In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments were effective for the Company on January 1, 2015. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. These amendments did not have a material effect on the Company's financial statements.

In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for interim and annual reporting periods beginning after December 15, 2017.The Company can apply the guidance using either a full retrospective approach or a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements.

In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The new guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments were effective for the Company on January 1, 2015. These amendments did not have a material effect on the Company's financial statements.

In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments will be effective for the Company for fiscal years that begin after December 15, 2015. The Company will apply the guidance to all stock awards granted or modified after the amendments are effective. The Company does not expect these amendments to have a material effect on its financial statements.

In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively.

In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. The amendments are expected to result in the deconsolidation of many entities. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements.

In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect these amendments to have a material effect on its financial statements.

In April 2015, the FASB issued guidance which provides a practical expedient that permits the Company to measure defined benefit plan assets and obligations using the month-end that is closest to the Company's fiscal year-end.The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15,2015,with early adoption permitted.The Company does not expect these amendments to have a material effect on its financial statements.

In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification, correct unintended application of guidance, and make minor improvements that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements.

In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements.

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

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FDIC Indemnification Asset (Schedule of FDIC Indemnification Asset Components) (Details)	3 Months Ended
	Jun. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($) item	Sep. 30, 2014 USD ($)
FDIC indemnification asset components
Receivable (payable) related to loss claims incurred, (recoveries), not yet reimbursed, net		$ (2,427,000)	$ 6,899,000	$ 5,957,000
Receivable related to estimated future claims on loans		9,522,000	14,933,000	17,932,000
Receivable related to estimated future claims on foreclosed real estate		554,000	737,000	1,439,000
FDIC indemnification asset		$ 7,649,000	22,569,000	$ 25,328,000
Receivable related to claims involving the same borrower for which the FDIC has denied the claims			$ 1,200,000
Number of claims involving the same borrower for which the FDIC has denied the claims | item			2
Amount of claims to be fully honored by the FDIC and the related loan	$ 324,000
Ratio of claims amount to be split on future recoveries realized prior to June 30, 2017	20.00%
Percentage of receivable related to estimated future claims received by FDIC	80.00%
Amount of other claim	$ 886,000
Receivable from FDIC	$ 480,000
Percentage of receivable related to estimated future claims on loans	100.00%
Wrote off the portion of the claim not being reimbursed by the FDIC	$ 406,000

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Fair Value (Level 3 assets and liabilities measured at fair value) (Details) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2015

Dec. 31, 2014

Impaired Loans - Covered [Member]

Impaired loans - covered

$ 2,466

$ 3,991

Valuation technique

Appraised value; PV of expected cash flows

Appraised value; PV of expected cash flows

Significant unobservable inputs

Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell

Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell

General range of significant input values, minimum

0.00%

0.00%

General range of significant input values, maximum

10.00%

10.00%

Impaired Loans - Non - Covered [Member]

Impaired loans - non-covered

$ 18,415

$ 18,035

Valuation technique

Appraised value; PV of expected cash flows

Appraised value; PV of expected cash flows

Significant unobservable inputs

Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell

Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell

General range of significant input values, minimum

0.00%

0.00%

General range of significant input values, maximum

10.00%

10.00%

Foreclosed Real Estate - Covered [Member]

Other real estate - covered

$ 1,569

$ 2,350

Valuation technique

Appraised value; independent market prices

Appraised value; independent market prices

Significant unobservable inputs

Discounts to reflect current market conditions and estimated costs to sell

Discounts to reflect current market conditions and estimated costs to sell

General range of significant input values, minimum

0.00%

0.00%

General range of significant input values, maximum

10.00%

10.00%

Foreclosed Real Estate - Non-Covered [Member]

Other real estate - non-covered

$ 9,304

$ 9,771

Valuation technique

Appraised value; independent market prices

Appraised value; independent market prices

Significant unobservable inputs

Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell

Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell

General range of significant input values, minimum

0.00%

0.00%

General range of significant input values, maximum

40.00%

40.00%

XML

Loans and Asset Quality Information (Tables)

9 Months Ended

Sep. 30, 2015

Loans and Asset Quality Information [Abstract]

Summary of the major categories of total loans outstanding

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
All loans (non-covered and covered):
Commercial, financial, and agricultural	$	199,630		8%	$	160,878		7%	$	165,215		7%
Real estate – construction, land development & other land loans		294,426		12%		288,148		12%		298,091		13%
Real estate – mortgage – residential (1-4 family) first mortgages		770,691		31%		789,871		33%		806,954		33%
Real estate – mortgage – home equity loans / lines of credit		224,639		9%		223,500		9%		224,553		9%
Real estate – mortgage – commercial and other		944,432		38%		882,127		37%		879,122		36%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,480,938		100%		2,395,228		100%		2,425,360		100%
Unamortized net deferred loan costs		765				946				730
Total loans	$	2,481,703			$	2,396,174			$	2,426,090

Summary of the major categories of non-covered loans outstanding

($ in thousands)	September 30, 2015				December 31, 2014				September 30, 2014
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Non-covered loans:
Commercial, financial, and agricultural	$	198,624		9%	$	159,195		7%	$	162,994		7%
Real estate – construction, land development & other land loans		290,465		12%		282,604		13%		292,401		13%
Real estate – mortgage – residential (1-4 family) first mortgages		692,431		29%		700,101		31%		714,879		31%
Real estate – mortgage – home equity loans / lines of credit		213,435		9%		210,697		9%		211,477		9%
Real estate – mortgage – commercial and other		932,254		39%		864,333		38%		858,935		38%
Installment loans to individuals		47,120		2%		50,704		2%		51,425		2%
Subtotal		2,374,329		100%		2,267,634		100%		2,292,111		100%
Unamortized net deferred loan costs		765				946				730
Total non-covered loans	$	2,375,094			$	2,268,580			$	2,292,841

Schedule of the carrying amount of the covered loans

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	59		116		947		975		1,006		1,091
Real estate – construction, land development & other land loans		297		522		3,664		3,912		3,961		4,434
Real estate – mortgage – residential (1-4 family) first mortgages		109		636		78,151		91,570		78,260		92,206
Real estate – mortgage – home equity loans / lines of credit		8		15		11,196		12,912		11,204		12,927
Real estate – mortgage – commercial and other		1,047		3,154		11,131		11,871		12,178		15,025
Total	$	1,520		4,443		105,089		121,240		106,609		125,683

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	66		123		1,617		1,661		1,683		1,784
Real estate – construction, land development & other land loans		309		534		5,235		6,471		5,544		7,005
Real estate – mortgage – residential (1-4 family) first mortgages		362		1,298		89,408		104,678		89,770		105,976
Real estate – mortgage – home equity loans / lines of credit		12		19		12,791		15,099		12,803		15,118
Real estate – mortgage – commercial and other		1,201		3,209		16,593		17,789		17,794		20,998
Total	$	1,950		5,183		125,644		145,698		127,594		150,881

Schedule of activity in covered purchased nonimpaired loans

($ in thousands)
Carrying amount of nonimpaired covered loans at December 31, 2013	$	207,167
Principal repayments		(50,183	)
Transfers to foreclosed real estate		(5,061	)
Transfers to non-covered loans due to expiration of loss-share agreement		(38,987	)
Net loan (charge-offs) / recoveries		(3,301	)
Accretion of loan discount		16,009
Carrying amount of nonimpaired covered loans at December 31, 2014		125,644
Principal repayments		(25,051	)
Transfers to foreclosed real estate		(1,129	)
Net loan (charge-offs) / recoveries		1,728
Accretion of loan discount		3,897
Carrying amount of nonimpaired covered loans at September 30, 2015	$	105,089

Schedule of activity in purchased impaired loans

($ in thousands) Purchased Impaired Loans	Contractual Principal Receivable			Fair Market Value Adjustment – Write Down (Nonaccretable Difference)			Carrying Amount
Balance at December 31, 2013	$	6,263			3,121			3,142
Change due to payments received		(599)			227			(826)
Change due to loan charge-off		(2)			29			(31)
Other		197			(115)			312
Balance at December 31, 2014	$	5,859			3,262			2,597
Change due to payments received		(330	)		55			(385)
Transfer to foreclosed real estate		(431	)		(336	)		(95)
Other		(3	)		(3	)		—
Balance at September 30, 2015	$	5,095			2,978			2,117

Summary of nonperforming assets

ASSET QUALITY DATA ($ in thousands)	September 30, 2015		December 31, 2014		September 30, 2014
Non-covered nonperforming assets
Nonaccrual loans	$	42,347	$	50,066	$	53,620
Restructured loans - accruing		29,250		35,493		31,501
Accruing loans > 90 days past due		—		—		—
Total non-covered nonperforming loans		71,597		85,559		85,121
Foreclosed real estate		9,304		9,771		11,705
Total non-covered nonperforming assets	$	80,901	$	95,330	$	96,826
Covered nonperforming assets
Nonaccrual loans (1)	$	5,373	$	10,508	$	10,478
Restructured loans - accruing		3,825		5,823		6,273
Accruing loans > 90 days past due		—		—		—
Total covered nonperforming loans		9,198		16,331		16,751
Foreclosed real estate		1,569		2,350		3,237
Total covered nonperforming assets	$	10,767	$	18,681	$	19,988
Total nonperforming assets	$	91,668	$	114,011	$	116,814

(1)  At September 30, 2015, December 31, 2014, and September 30, 2014, the contractual balance of the nonaccrual loans covered by FDIC loss share agreements was $10.1 million, $16.0 million, and $16.3 million, respectively.

Schedule of nonaccrual loans

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	470		22		492
Commercial – secured		2,253		—		2,253
Secured by inventory and accounts receivable		84		23		107
Real estate – construction, land development & other land loans		5,374		60		5,434
Real estate – residential, farmland and multi-family		21,936		3,270		25,206
Real estate – home equity lines of credit		2,110		362		2,472
Real estate – commercial		9,762		1,636		11,398
Consumer		358		—		358
Total	$	42,347		5,373		47,720

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	187		1		188
Commercial – secured		2,927		—		2,927
Secured by inventory and accounts receivable		454		103		557
Real estate – construction, land development & other land loans		7,891		1,140		9,031
Real estate – residential, farmland and multi-family		24,459		7,785		32,244
Real estate – home equity lines of credit		2,573		278		2,851
Real estate – commercial		11,070		1,201		12,271
Consumer		505		—		505
Total	$	50,066		10,508		60,574

Schedule of analysis of the payment status of loans

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	734		—		470		49,325		50,529
Commercial - secured		772		73		2,253		114,989		118,087
Secured by inventory and accounts receivable		366		—		84		33,177		33,627
Real estate – construction, land development & other land loans		938		90		5,374		269,002		275,404
Real estate – residential, farmland, and multi-family		5,404		1,948		21,936		822,084		851,372
Real estate – home equity lines of credit		996		332		2,110		199,180		202,618
Real estate - commercial		4,013		234		9,762		785,182		799,191
Consumer		379		239		358		42,525		43,501
Total non-covered	$	13,602		2,916		42,347		2,315,464		2,374,329
Unamortized net deferred loan costs										765
Total non-covered loans									$	2,375,094
Covered loans	$	340		751		5,373		100,145		106,609
Total loans	$	13,942		3,667		47,720		2,415,609		2,481,703

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	191		35		187		36,871		37,284
Commercial - secured		1,003		373		2,927		102,671		106,974
Secured by inventory and accounts receivable		30		225		454		21,761		22,470
Real estate – construction, land development & other land loans		1,950		139		7,891		247,535		257,515
Real estate – residential, farmland, and multi-family		11,272		3,218		24,459		807,884		846,833
Real estate – home equity lines of credit		1,585		352		2,573		194,067		198,577
Real estate - commercial		3,738		996		11,070		738,981		754,785
Consumer		695		131		505		41,865		43,196
Total non-covered	$	20,464		5,469		50,066		2,191,635		2,267,634
Unamortized net deferred loan costs										946
Total non-covered loans									$	2,268,580
Covered loans	$	4,385		964		10,508		111,737		127,594
Total loans	$	24,849		6,433		60,574		2,303,372		2,396,174

Schedule of activity in the allowance for loan losses for non-covered loans

($ in thousands)	Commercial, Financial and Agricultural				Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated		Total
As of and for the three months ended September 30, 2015
Beginning balance	$	5,564			5,016			9,641			3,167			4,723			948			1,096		30,155
Charge-offs	(523			)	(574		)	(1,949		)	(31		)	(198		)	(369		)	—		(3,644)
Recoveries	387				625			98			43			140			84			—		1,377
Provisions	(185			)	(1,105		)	1,341			(565		)	249			216			316		267
Ending balance	$	5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
As of and for the nine months ended September 30, 2015
Beginning balance	$		8,391			6,470			9,720			3,731			9,045			841			147		38,345
Charge-offs			(3,550	)		(2,532	)		(4,362	)		(594	)		(2,147	)		(1,222	)		—		(14,407)
Recoveries			735			942			270			88			535			275			—		2,845
Provisions			(333	)		(918	)		3,503			(611	)		(2,519	)		985			1,265		1,372
Ending balance	$		5,243			3,962			9,131			2,614			4,914			879			1,412		28,155
Ending balances as of September 30, 2015: Allowance for loan losses
Individually evaluated for impairment	$		135			250			1,575			—			449			—			—		2,409
Collectively evaluated for impairment	$		5,108			3,712			7,556			2,614			4,465			879			1,412		25,746
Loans acquired with deteriorated credit quality	$		—			—			—			—			—			—			—		—
Loans receivable as of September 30, 2015:
Ending balance - total	$		202,243			275,404			851,372			202,618			799,191			43,501			—		2,374,329
Unamortized net deferred loan costs																							765
Total non-covered loans																						$	2,375,094
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$		986			4,685			23,599			—			16,655			—			—		45,925
Collectively evaluated for impairment	$		201,257			270,719			827,773			202,618			781,939			43,501			—		2,327,807
Loans acquired with deteriorated credit quality	$		—			—			—			—			597			—			—		597

($ in thousands)	Commercial, Financial, and Agricultural		Real Estate – Construction, Land Development, & Other Land Loans		Real Estate – Residential, Farmland, and Multi- family		Real Estate – Home Equity Lines of Credit		Real Estate – Commercial and Other		Consumer		Unallo- cated		Total
As of and for the year ended December 31, 2014
Beginning balance	$	7,432		12,966		15,142		1,838		5,524		1,513		(152)		44,263
Charge-offs		(4,039)		(2,148)		(4,417)		(912)		(3,048)		(1,724)		—		(16,288)
Recoveries		140		398		331		45		181		451		—		1,546
Transfer from covered category		36		813		51		—		833		4		—		1,737
Provisions		4,822		(5,559)		(1,387)		2,760		5,555		597		299		7,087
Ending balance	$	8,391		6,470		9,720		3,731		9,045		841		147		38,345
Ending balances as of December 31, 2014: Allowance for loan losses
Individually evaluated for impairment	$	211		415		1,686		—		165		—		—		2,477
Collectively evaluated for impairment	$	8,180		6,055		8,034		3,731		8,880		841		147		35,868
Loans acquired with deteriorated credit quality	$	—		—		—		—		—		—		—		—
Loans receivable as of December 31, 2014:
Ending balance - total	$	166,728		257,515		846,833		198,577		754,785		43,196		—		2,267,634
Unamortized net deferred loan costs																946
Total non-covered loans															$	2,268,580
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	784		7,991		20,263		476		20,263		7		—		53,531
Collectively evaluated for impairment	$	165,944		249,524		733,875		198,101		733,875		43,189		—		2,213,456
Loans acquired with deteriorated credit quality	$	—		—		—		—		647		—		—		647

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans		Real Estate – Residential, Farmland, and Multi- family		Real Estate – Home Equity Lines of Credit		Real Estate – Commercial and Other		Consumer		Unallo- cated		Total
As of and for the three months ended September 30, 2014
Beginning balance	$	8,948		7,414		11,132		3,755		9,212		906		599		41,966
Charge-offs	(840)			(470)		(874)		(116)		(987)		(463)		—		(3,750)
Recoveries	32			40		111		7		14		128		—		332
Transfer from covered category	36			813		51		—		833		4		—		1,737
Provisions	1,185			(574)		(194)		49		971		343		(501)		1,279
Ending balance	$		9,361	7,223		10,226		3,695		10,043		918		98		41,564
As of and for the nine months ended September 30, 2014
Beginning balance	$	7,432			12,966		15,142		1,838		5,524		1,513		(152)		44,263
Charge-offs		(3,506)			(1,704)		(2,505)		(619)		(1,876)		(1,262)		—		(11,472)
Recoveries		81			349		290		18		135		361		—		1,234
Transfer from covered category		36			813		51		—		833		4		—		1,737
Provisions		5,318			(5,201)		(2,752)		2,458		5,427		302		250		5,802
Ending balance	$	9,361			7,223		10,226		3,695		10,043		918		98		41,564
Ending balances as of September 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	381			513		1,771		—		229		20		—		2,914
Collectively evaluated for impairment	$	8,980			6,710		8,455		3,695		9,814		898		98		38,650
Loans acquired with deteriorated credit quality	$	—			—		—		—		—		—		—		—
Loans receivable as of September 30, 2014:
Ending balance - total	$	170,648			266,419		860,218		198,977		752,108		43,741		—		2,292,111
Unamortized net deferred loan costs																	730
Total non-covered loans																$	2,292,841
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	972			8,613		24,233		481		20,128		34		—		54,461
Collectively evaluated for impairment	$	169,676			257,806		835,985		198,496		731,316		43,707		—		2,236,986
Loans acquired with deteriorated credit quality	$	—			—		—		—		664		—		—		664

Schedule of activity in the allowance for loan losses for covered loans

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2015
Beginning balance	$	1,935
Charge-offs		(84	)
Recoveries		1,730
Provisions		(1,681	)
Ending balance	$	1,900
As of and for the nine months ended September 30, 2015
Beginning balance	$	2,281
Charge-offs		(1,200	)
Recoveries		2,928
Provisions		(2,109	)
Ending balance	$	1,900
Ending balances as of September 30, 2015: Allowance for loan losses
Individually evaluated for impairment	$	466
Collectively evaluated for impairment		1,391
Loans acquired with deteriorated credit quality		43
Loans receivable as of September 30, 2015:
Ending balance – total	$	106,609
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment	$	5,197
Collectively evaluated for impairment		99,892
Loans acquired with deteriorated credit quality		1,520

($ in thousands)	Covered Loans
As of and for the year ended December 31, 2014
Beginning balance	$	4,242
Charge-offs		(6,948	)
Recoveries		3,616
Transferred to non-covered		(1,737	)
Provisions		3,108
Ending balance	$	2,281
Ending balances as of December 31, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,161
Collectively evaluated for impairment		1,046
Loans acquired with deteriorated credit quality		74
Loans receivable as of December 31, 2014:
Ending balance – total	$	127,594
Ending balances as of December 31, 2014: Loans
Individually evaluated for impairment	$	11,484
Collectively evaluated for impairment		114,160
Loans acquired with deteriorated credit quality		1,950

($ in thousands)	Covered Loans
As of and for the three months ended September 30, 2014
Beginning balance	$	3,830
Charge-offs		(195	)
Recoveries		463
Transferred to non-covered		(1,737	)
Provisions		206
Ending balance	$	2,567
As of and for the nine months ended September 30, 2014
Beginning balance	$	4,242
Charge-offs		(5,865	)
Recoveries		3,010
Transferred to non-covered		(1,737	)
Provisions		2,917
Ending balance	$	2,567
Ending balances as of September 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,537
Collectively evaluated for impairment		1,003
Loans acquired with deteriorated credit quality		27
Loans receivable as of September 30, 2014:
Ending balance – total	$	133,249
Ending balances as of September 30, 2014: Loans
Individually evaluated for impairment	$	11,258
Collectively evaluated for impairment		119,953
Loans acquired with deteriorated credit quality		2,038

Schedule of impaired loans individually evaluated

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	271		311		—		102
Commercial - secured		92		95		—		56
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		3,729		7,090		—		4,716
Real estate – residential, farmland, and multi-family		9,466		10,839		—		9,548
Real estate – home equity lines of credit		—		—		—		119
Real estate – commercial		12,531		14,149		—		15,731
Consumer		—		—		—		2
Total non-covered impaired loans with no allowance	$	26,089		32,484		—		30,274
Total covered impaired loans with no allowance	$	3,742		7,380		—		5,701
Total impaired loans with no allowance recorded	$	29,831		39,864		—		35,975
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	148		155		43		139
Commercial - secured		475		496		92		538
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		956		1,002		250		1,363
Real estate – residential, farmland, and multi-family		14,133		14,526		1,575		14,194
Real estate – home equity lines of credit		—		—		—		—
Real estate – commercial		4,721		4,793		449		3,608
Consumer		—		—		—		—
Total non-covered impaired loans with allowance	$	20,433		20,972		2,409		19,842
Total covered impaired loans with allowance	$	2,975		3,268		509		3,874
Total impaired loans with an allowance recorded	$	23,408		24,240		2,918		23,716

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	33		35		—		20
Commercial - secured		5		6		—		95
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		6,877		7,944		—		6,430
Real estate – residential, farmland, and multi-family		9,165		10,225		—		7,776
Real estate – home equity lines of credit		476		498		—		388
Real estate – commercial		17,409		20,786		—		11,911
Consumer		7		10		—		7
Total non-covered impaired loans with no allowance	$	33,972		39,504		—		26,627
Total covered impaired loans with no allowance	$	8,097		12,081		—		16,986
Total impaired loans with no allowance recorded	$	42,069		51,585		—		43,613
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	140		143		47		142
Commercial - secured		606		612		164		550
Secured by inventory and accounts receivable		—		—		—		15
Real estate – construction, land development & other land loans		1,114		3,243		415		1,487
Real estate – residential, farmland, and multi-family		14,845		15,257		1,686		14,418
Real estate – home equity lines of credit		—		—		—		4
Real estate – commercial		3,501		3,530		165		6,420
Consumer		—		—		—		8
Total non-covered impaired loans with allowance	$	20,206		22,785		2,477		23,044
Total covered impaired loans with allowance	$	5,220		5,719		1,229		8,513
Total impaired loans with an allowance recorded	$	25,426		28,504		3,706		31,557

Schedule of recorded investment in loans by credit quality indicators

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	28,490		19,737		—		1,161		671		470		50,529
Commercial - secured		54,927		55,401		32		3,224		2,250		2,253		118,087
Secured by inventory and accounts receivable		13,154		19,525		—		273		591		84		33,627
Real estate – construction, land development & other land loans		96,745		151,784		679		12,355		8,467		5,374		275,404
Real estate – residential, farmland, and multi-family		213,179		535,203		4,420		44,175		32,459		21,936		851,372
Real estate – home equity lines of credit		129,421		60,464		1,412		5,067		4,144		2,110		202,618
Real estate - commercial		281,428		461,060		8,102		26,880		11,959		9,762		799,191
Consumer		29,371		12,841		52		400		479		358		43,501
Total	$	846,715		1,316,015		14,697		93,535		61,020		42,347		2,374,329
Unamortized net deferred loan costs														765
Total non-covered  loans													$	2,375,094
Total covered loans	$	12,332		61,065		253		8,505		19,081		5,373		106,609
Total loans	$	859,047		1,377,080		14,950		102,040		80,101		47,720		2,481,703

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Pass – Acceptable/ Average (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	17,856		15,649		5		1,356		2,231		187		37,284
Commercial - secured		32,812		62,361		62		4,481		4,331		2,927		106,974
Secured by inventory and accounts receivable		10,815		9,928		—		767		506		454		22,470
Real estate – construction, land development & other land loans		87,806		135,072		771		13,066		12,909		7,891		257,515
Real estate – residential, farmland, and multi-family		221,581		520,790		4,536		40,993		34,474		24,459		846,833
Real estate – home equity lines of credit		122,528		62,642		1,135		5,166		4,533		2,573		198,577
Real estate - commercial		223,197		465,395		9,057		30,318		15,748		11,070		754,785
Consumer		25,520		15,614		54		855		648		505		43,196
Total	$	742,115		1,287,451		15,620		97,002		75,380		50,066		2,267,634
Unamortized net deferred loan costs														946
Total non-covered  loans													$	2,268,580
Total covered loans	$	14,349		70,989		632		10,503		20,613		10,508		127,594
Total loans	$	756,464		1,358,440		16,252		107,505		95,993		60,574		2,396,174

Schedule of information related to loans modified in a troubled debt restructuring

($ in thousands)	For the three months ended						For the three months ended
	September 30, 2015						September 30, 2014
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances		Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—	$	—		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		1		21		21		1		36		36
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		1		390		390		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		1		95		95		3		275		275
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		6		1,236		1,236		5		326		326
Total covered TDRs arising during period  – Accruing		—	$	—	$	—		1	$	680	$	667
Total covered TDRs arising during period – Nonaccrual		—		—		—		2		150		145
Total TDRs arising during period		6	$	1,236	$	1,236		8	$	1,156	$	1,138

($ in thousands)	For the nine months ended September 30, 2015						For the nine months ended September 30, 2014
	Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances		Number of Contracts		Pre- Modification Restructured Balances		Post- Modification Restructured Balances
Non-covered TDRs – Accruing
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	8	$	8		—	$	—	$	—
Commercial – secured		—		—		—		—		—		—
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		1		235		235		—		—		—
Real estate – residential, farmland, and multi-family		3		286		286		8		784		784
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		2		441		441		—		—		—
Consumer		—		—		—		—		—		—
Non-covered TDRs – Nonaccrual
Commercial, financial, and agricultural:
Commercial – unsecured		—		—		—		—		—		—
Commercial – secured		—		—		—		1		15		15
Secured by inventory and accounts receivable		—		—		—		—		—		—
Real estate – construction, land development & other land loans		2		495		495		—		—		—
Real estate – residential, farmland, and multi-family		5		400		400		7		713		713
Real estate – home equity lines of credit		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total non-covered TDRs arising during period		14		1,865		1,865		16		1,512		1,512
Total covered TDRs arising during period– Accruing		2	$	139	$	139		3	$	928	$	912
Total covered TDRs arising during period – Nonaccrual		—		—		—		7		860		827
Total TDRs arising during period		16	$	2,004	$	2,004		26	$	3,300	$	3,251

Schedule od accruing restructured loans that defaulted in the period

($ in thousands)	For the three months ended				For the three months ended
	September 30, 2015				September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		—	$	—		—	$	—
Real estate – construction, land development & other land loans		—		—		—		—
Real estate – residential, farmland, and multi-family		1		152		—		—
Real estate – commercial		—		—		—		—
Total non-covered TDRs that subsequently defaulted		1	$	152		—	$	—
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		1	$	152		—	$	—

($ in thousands)	For the nine months ended September 30, 2015				For the nine months ended September 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Commercial, financial, and agricultural:
Commercial – unsecured		1	$	7		—	$	—
Real estate – construction, land development & other land loans		—		—		1		5
Real estate – residential, farmland, and multi-family		2		186		—		—
Real estate – commercial		—		—		1		71
Total non-covered TDRs that subsequently defaulted		3	$	193		2	$	76
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		3	$	193		2	$	76

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Securities (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Securities [Abstract]
Collateralized mortage obligations, amortized cost		$ 56,000	$ 108,000
Collateralized mortage obligations, fair value		57,000	111,000
Investment securities, pledged as collateral for public deposits		135,652,000	100,113,000
Net realized gains of investment securities	$ 786,000
Sales of investment securities	$ 47,473,000
Federal Home Loan Bank stock and Federal Reserve Bank stock, cost		15,468,000	6,016,000
Federal Home Loan Bank Stock, cost		8,421,000	$ 6,016,000
Federal Reserve Bank, cost		$ 7,047,000

XML

Comprehensive Income

9 Months Ended

Sep. 30, 2015

Comprehensive Income [Abstract]

Comprehensive Income

Note 12 – Comprehensive Income

Comprehensive income is defined as the change in equity during a period for non-owner transactions and is divided into net income and other comprehensive income. Other comprehensive income includes revenues, expenses, gains, and losses that are excluded from earnings under current accounting standards. The components of accumulated other comprehensive income for the Company are as follows:

($ in thousands)	September 30, 2015			December 31, 2014			September 30, 2014
Unrealized gain (loss) on securities available for sale	$	(843	)		(691	)		(1,803	)
Deferred tax asset (liability)		329			270			704
Net unrealized gain (loss) on securities available for sale		(514	)		(421	)		(1,099	)
Additional pension asset (liability)		(320	)		(257	)		4,969
Deferred tax asset (liability)		124			100			(1,938	)
Net additional pension asset (liability)		(196	)		(157	)		3,031
Total accumulated other comprehensive income (loss)	$	(710	)		(578	)		1,932

The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2015	$	(421	)		(157	)		(578	)
Other comprehensive income (loss) before reclassifications		(94	)		—			(94	)
Amounts reclassified from accumulated other comprehensive income		1			(39	)		(38	)
Net current-period other comprehensive income (loss)		(93	)		(39	)		(132	)
Ending balance at September 30, 2015	$	(514	)		(196	)		(710	)

The following table discloses the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2014 (all amounts are net of tax).

($ in thousands)	Unrealized Gain (Loss) on Securities Available for Sale			Additional Pension Asset (Liability)			Total
Beginning balance at January 1, 2014	$	(1,232	)		3,132			1,900
Other comprehensive income (loss) before reclassifications		613			—			613
Amounts reclassified from accumulated other comprehensive income		(480	)		(101	)		(581	)
Net current-period other comprehensive income (loss)		133			(101	)		32
Ending balance at September 30, 2014	$	(1,099	)		3,031			1,932