8-K - FCBC - Equibles

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 26, 2022
	FIRST COMMUNITY BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
Virginia	000-19297	55-0694814
---	---	---
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
P.O. Box 989<br><br> <br>Bluefield, Virginia		24605-0989
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: (276) 326-9000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
---	---	---
Common Stock ($1.00 par value)	FCBC	NASDAQ Global Select
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 26, 2022, First Community Bankshares, Inc. (the “Company”) announced by press release its earnings for the fourth quarter of 2021. A copy of the press release is attached hereto as Exhibit 99.1.

Item 8.01 Other Events.

On January 26, 2022, the Company announced by press release its quarterly cash dividend to common shareholders of twenty-seven cents ($0.27) per common share, payable on or about February 25, 2022, to shareholders of record on February 11, 2022. A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d)	The following exhibit is included with this report:
Exhibit No.	Exhibit Description
---	---
99.1<br><br> <br>104	Earnings release dated January 26, 2022<br><br> <br>Cover Page Interactive Data File (formatted as Inline XBRL).

Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

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 hereunto duly authorized.

		FIRST COMMUNITY BANKSHARES, INC.
Date:	January 26, 2022	By:	/s/ David D. Brown
			David D. Brown
			Chief Financial Officer

ex_326936.htm

Exhibit 99.1

NEWS RELEASE
FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION, CONTACT:
January 26, 2022	David D. Brown
	(276) 326-9000

First Community Bankshares, Inc. Announces Record 2021 Full Year Results, Fourth Quarter 2021 Results, and

Quarterly Cash Dividend Declared

Bluefield, Virginia – First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the year and quarter ended December 31, 2021. Annual net income for 2021 was a record $51.17 million, or $2.94 per diluted common share. The Company reported net income of $10.56 million, or $0.62 per diluted common share, for the quarter ended December 31, 2021.

The Company also declared a quarterly cash dividend to common shareholders of twenty-seven cents ($0.27) per common share, which is an increase of 8.00% over the same quarter last year. The quarterly dividend is payable to common shareholders of record on February 11, 2022, and is expected to be paid on or about February 25, 2022. 2022 is the 37^th^ consecutive year of regular dividends to common shareholders.

Fourth Quarter 2021 and Current Highlights

Income Statement

o	Annual net income for 2021 of $51.17 million, or $2.94 per diluted common share, was an increase of $15.24 million over 2020 and represents a 45.54% increase in diluted earnings per share compared to 2020. A reversal of $8.47 million in the allowance for credit losses in 2021 accounts for a large portion of the increase in net income. The decreases in credit loss provisioning are primarily due to significantly improved economic forecasts and GDP growth in the current year, as well as strong credit quality metrics, versus prior year provisioning driven by the pandemic. The increase was offset by a decrease in net interest income of $6.10 million, or 5.62%, driven by the current historically low interest rate environment, as well as a $3.33 million decrease in accretion on acquired loans
o	Net income for the fourth quarter of 2021 decreased $995 thousand to $10.56 million, or $0.62 per diluted common share, compared to the same quarter of 2020. The decrease was primarily driven by a decrease in net interest income of $2.49 million, or 8.97%, due to the current historically low interest rate environment, as well as a $1.67 million decrease in accretion on acquired loans. The decrease in net interest income was offset by the reversal of $846 thousand in allowance for credit losses for the fourth quarter.
---	---
o	2021 year-to-date return on average common equity increased to 11.96% compared to 8.54% in 2020. Annualized fourth quarter-to-date return on average common equity decreased to 9.77% compared to 10.82% over the same quarter of 2020.
o	2021 year-to-date return on average assets increased to 1.63% compared to 1.24% for 2020. Annualized quarter-to-date return on average assets decreased to 1.32% compared to 1.54% over the same quarter of 2020.
o	Year-to-date non-interest income increased 14.98% to $34.30 million, over last year. Non-interest income for the fourth quarter of 2021 increased $1.48 million, or 19.16%, compared to the same quarter of the prior year. Both increases are largely attributable to increases in other service charges due to the more vibrant state of local economies with increased customer activity compared with last year.

Balance Sheet and Asset Quality

o	Year-to-date, the Company has repurchased 949,386 common shares, or 5.36% of outstanding, for $28.88 million.
o	During the fourth quarter, the Company repurchased 222,700 common shares for $7.45 million.
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o	Net charge-offs for the fourth quarter of 2021 were $1.17 million, or 0.22% of annualized average loans, compared to net charge-offs of $1.73 million, or 0.26% of annualized average loans, for the same period in 2020. Non-performing loans to total loans remained a very low 1.03%.
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o	The allowance for credit losses to total loans remains very strong at 1.29% of total loans.
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o	The SBA had forgiven $56.86 million, or 93.20%, of the Company’s first round Paycheck Protection Program (“PPP”) loan balances through December 31, 2021. Current PPP loan balances at December 31, 2021, which include second round originations, were $20.64 million.
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o	Book value per share at December 31, 2021, was $25.34; an increase of $1.26 from year-end 2020.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 49 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2021. First Community Bank offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed and administered $1.32 billion in combined assets as of December 31, 2021. The Company reported consolidated assets of $3.19 billion as of December 31, 2021. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
****	Three Months Ended															Twelve Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
****	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
(Amounts in thousands, except share and per share data)	2021			2021			2021			2021			2020			2021			2020
Interest income				****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Interest and fees on loans	$	25,236		$	25,119		$	25,937		$	26,540		$	28,101		$	102,832		$	110,447
Interest on securities		362			445			435			495			549			1,737			2,789
Interest on deposits in banks		234			225			166			116			96			741			800
Total interest income		25,832			25,789			26,538			27,151			28,746			105,310			114,036
Interest expense				****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Interest on deposits		600			642			724			869			1,029			2,835			5,460
Interest on borrowings		-			1			-			-			-			1			4
Total interest expense		600			643			724			869			1,029			2,836			5,464
Net interest income		25,232			25,146			25,814			26,282			27,717			102,474			108,572
(Recovery of) provision for credit losses		(846	)		(1,394	)		(2,230	)		(4,001	)		634			(8,471	)		12,668
Net interest income after provision		26,078			26,540			28,044			30,283			27,083			110,945			95,904
Noninterest income		9,215			8,720			8,797			7,569			7,733			34,301			29,833
Noninterest expense		21,701			18,836			19,361			18,820			19,877			78,718			79,625
Income before income taxes		13,592			16,424			17,480			19,032			14,939			66,528			46,112
Income tax expense		3,037			3,816			4,077			4,430			3,389			15,360			10,186
Net income	$	10,555		$	12,608		$	13,403		$	14,602		$	11,550		$	51,168		$	35,926
Earnings per common share
Basic	$	0.62		$	0.73		$	0.77		$	0.83		$	0.65		$	2.95		$	2.02
Diluted		0.62			0.73			0.76			0.82			0.65			2.94			2.02
Cash dividends per common share
Regular		0.27			0.27			0.25			0.25			0.25			1.04			1.00
Weighted average shares outstanding
Basic		16,974,005			17,221,244			17,486,182			17,669,937			17,717,356			17,335,615			17,781,748
Diluted		17,038,980			17,279,576			17,536,144			17,729,185			17,751,805			17,402,936			17,815,380
Performance ratios
Return on average assets		1.32	%		1.59	%		1.70	%		1.94	%		1.54	%		1.63	%		1.24	%
Return on average common equity		9.77	%		11.65	%		12.55	%		13.94	%		10.82	%		11.96	%		8.54	%
Return on average tangible common equity^(1)^		14.28	%		17.04	%		18.40	%		20.54	%		15.96	%		17.53	%		12.68	%
(1)	A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets
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CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)
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	Three Months Ended													Twelve Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31,		September 30,		June 30,			March 31,			December 31,			December 31,
(Amounts in thousands)	2021		2021		2021			2021			2020			2021			2020
Noninterest income	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Wealth management	$	940	$	974	$	1,058		$	881		$	810		$	3,853		$	3,417
Service charges on deposits		3,718		3,599		3,098			3,031			3,478			13,446			13,019
Other service charges and fees		3,091		3,143		3,166			3,022			2,737			12,422			10,333
Net gain on sale of securities		-		-		-			-			-			-			385
Net FDIC indemnification asset amortization		-		-		(946	)		(280	)		(338	)		(1,226	)		(1,690	)
Other operating income		1,466		1,004		2,421			915			1,046			5,806			4,369
Total noninterest income	$	9,215	$	8,720	$	8,797		$	7,569		$	7,733		$	34,301		$	29,833
Noninterest expense	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Salaries and employee benefits	$	12,493	$	10,646	$	10,216		$	10,884		$	11,119		$	44,239		$	44,005
Occupancy expense		1,368		1,155		1,115			1,275			1,225			4,913			5,043
Furniture and equipment expense		1,418		1,385		1,457			1,367			1,446			5,627			5,558
Service fees		1,946		1,530		1,513			1,335			1,232			6,324			5,665
Advertising and public relations		589		536		616			335			534			2,076			1,951
Professional fees		455		313		290			466			276			1,524			1,224
Amortization of intangibles		364		365		360			357			364			1,446			1,450
FDIC premiums and assessments		213		216		204			199			202			832			426
Merger, acquisition, and divestiture expense		-		-		-			-			-			-			1,893
Other operating expense		2,855		2,690		3,590			2,602			3,479			11,737			12,410
Total noninterest expense	$	21,701	$	18,836	$	19,361		$	18,820		$	19,877		$	78,718		$	79,625

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
	Three Months Ended															Twelve Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2021			2021			2021			2021			2020			2021			2020
(Amounts in thousands, except per share data)
Net income	$	10,555		$	12,608		$	13,403		$	14,602		$	11,550		$	51,168		$	35,926
Non-GAAP adjustments:
Net (gain) loss on sale of securities		-			-			-			-			-			-			(385	)
Merger, acquisition, and divestiture expense		-			-			-			-			-			-			1,893
Total adjustments		-			-			-			-			-			-			1,508
Tax effect		-			-			-			-			-			-			354
Adjusted earnings, non-GAAP	$	10,555		$	12,608		$	13,403		$	14,602		$	11,550		$	51,168		$	37,080
Adjusted diluted earnings per common share, non-GAAP	$	0.62		$	0.73		$	0.76		$	0.82		$	0.65		$	2.94		$	2.08
Performance ratios, non-GAAP
Adjusted return on average assets		1.32	%		1.59	%		1.70	%		1.94	%		1.54	%		1.63	%		1.28	%
Adjusted return on average common equity		9.77	%		11.65	%		12.55	%		13.94	%		10.82	%		11.96	%		8.81	%
Adjusted return on average tangible common equity^(1)^		14.28	%		17.04	%		18.40	%		20.54	%		15.96	%		17.53	%		13.08	%
A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
	Three Months Ended December 31,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2021							2020
	Average		****	****	Average Yield/			Average		****	****	Average Yield/
(Amounts in thousands)	Balance		Interest^(1)^		Rate^(1)^			Balance		Interest^(1)^		Rate^(1)^
Assets	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Earning assets
Loans^(2)(3)^	$	2,163,613	$	25,274		4.63	%	$	2,188,069	$	28,143		5.12	%
Securities available for sale		76,556		418		2.17	%		87,592		640		2.91	%
Interest-bearing deposits		613,377		237		0.15	%		375,088		99		0.11	%
Total earning assets		2,853,546		25,929		3.60	%		2,650,749		28,882		4.33	%
Other assets		328,866							337,906
Total assets	$	3,182,412						$	2,988,655
Liabilities and stockholders' equity	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Interest-bearing deposits
Demand deposits	$	668,335	$	28		0.02	%	$	594,222	$	50		0.03	%
Savings deposits		843,501		64		0.03	%		739,312		112		0.06	%
Time deposits		362,869		509		0.56	%		428,849		867		0.80	%
Total interest-bearing deposits		1,874,705		601		0.13	%		1,762,383		1,029		0.23	%
Borrowings
Retail repurchase agreements		1,236		-	N/M				925		1		0.14	%
Total borrowings		1,236		-	N/M				925		1		0.14	%
Total interest-bearing liabilities		1,875,941		601		0.13	%		1,763,308		1,030		0.23	%
Noninterest-bearing demand deposits		838,920							763,412
Other liabilities		38,986							37,305
Total liabilities		2,753,847							2,564,025
Stockholders' equity		428,565							424,630
Total liabilities and stockholders' equity	$	3,182,412						$	2,988,655
Net interest income, FTE^(1)^			$	25,328						$	27,852
Net interest rate spread						3.47	%						4.10	%
Net interest margin, FTE^(1)^						3.52	%						4.18	%
(1)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
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(2)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $1.10 million and $2.77 million for the three months ended December 31, 2021 and 2020, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
	Twleve Months Ended December 31,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2021							2020
	Average		****	****	Average Yield/			Average		****	****	Average Yield/
(Amounts in thousands)	Balance		Interest^(1)^		Rate^(1)^			Balance		Interest^(1)^		Rate^(1)^
Assets	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Earning assets
Loans^(2)(3)^	$	2,153,099	$	102,996		4.78	%	$	2,142,637	$	110,619		5.16	%
Securities available for sale		81,049		2,008		2.48	%		105,005		3,259		3.10	%
Interest-bearing deposits		570,040		745		0.13	%		296,495		805		0.27	%
Total earning assets		2,804,188		105,749		3.77	%		2,544,137		114,683		4.51	%
Other assets		330,640							348,150
Total assets	$	3,134,828						$	2,892,287
Liabilities and stockholders' equity	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Interest-bearing deposits
Demand deposits	$	646,999	$	127		0.02	%	$	556,279	$	311		0.06	%
Savings deposits		816,845		281		0.03	%		711,831		902		0.13	%
Time deposits		387,249		2,427		0.63	%		456,755		4,247		0.93	%
Total interest-bearing deposits		1,851,093		2,835		0.15	%		1,724,865		5,460		0.32	%
Borrowings
Retail repurchase agreements		1,194		1		0.07	%		1,145		3		0.28	%
FHLB advances and other borrowings		-		-		-			36		1		2.23	%
Total borrowings		1,194		1		0.07	%		1,181		4		0.34	%
Total interest-bearing liabilities		1,852,287		2,836		0.15	%		1,726,046		5,464		0.32	%
Noninterest-bearing demand deposits		816,638							707,623
Other liabilities		38,151							37,826
Total liabilities		2,707,076							2,471,495
Stockholders' equity		427,752							420,792
Total liabilities and stockholders' equity	$	3,134,828						$	2,892,287
Net interest income, FTE^(1)^			$	102,913						$	109,219
Net interest rate spread						3.62	%						4.19	%
Net interest margin, FTE^(1)^						3.67	%						4.29	%
(1)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
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(2)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $4.66 million and $7.99 million for the twelve months ended December 31, 2021 and 2020, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
			September 30,			June 30,			March 31,			December 31,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Amounts in thousands, except per share data)			2021			2021			2021			2020
Assets			****	****	****	****	****	****	****	****	****	****	****	****
Cash and cash equivalents	677,439		$	635,007		$	618,738		$	628,745		$	456,561
Debt securities available for sale	76,292			77,440			79,842			87,643			83,358
Loans held for investment, net of unearned income (includes covered loans of 0, 9,041, 9,680, 10,744,and 11,257, for the stated periods, respectively) (1)	2,165,569			2,152,103			2,153,731			2,146,640			2,186,632
Allowance for credit losses (2)	(27,858	)		(29,877	)		(31,857	)		(34,563	)		(26,182	)
Loans held for investment, net	2,137,711			2,122,226			2,121,874			2,112,077			2,160,450
FDIC indemnification asset	-			-			-			946			1,223
Premises and equipment, net	52,284			52,842			53,560			57,371			57,700
Other real estate owned	1,015			1,240			1,324			1,740			2,083
Interest receivable	7,900			8,146			8,480			8,724			9,052
Goodwill	129,565			129,565			129,565			129,565			129,565
Other intangible assets	5,622			5,987			6,352			6,712			7,069
Other assets	106,691			107,258			109,548			106,543			104,075
Total assets	3,194,519		$	3,139,711		$	3,129,283		$	3,140,066		$	3,011,136
Liabilities			****	****	****	****	****	****	****	****	****	****	****	****
Deposits
Noninterest-bearing	842,783		$	820,147		$	819,138		$	824,576		$	772,795
Interest-bearing	1,886,608			1,853,699			1,846,556			1,848,524			1,773,452
Total deposits	2,729,391			2,673,846			2,665,694			2,673,100			2,546,247
Securities sold under agreements to repurchase	1,536			1,106			994			1,519			964
Interest, taxes, and other liabilities	35,817			37,395			35,061			39,448			37,195
Total liabilities	2,766,744			2,712,347			2,701,749			2,714,067			2,584,406
Stockholders' equity			****	****	****	****	****	****	****	****	****	****	****	****
Common stock	16,878			17,071			17,335			17,592			17,723
Additional paid-in capital	147,619			154,086			161,853			169,173			173,345
Retained earnings	264,824			258,860			250,911			241,889			237,585
Accumulated other comprehensive loss	(1,546	)		(2,653	)		(2,565	)		(2,655	)		(1,923	)
Total stockholders' equity	427,775			427,364			427,534			425,999			426,730
Total liabilities and stockholders' equity	3,194,519		$	3,139,711		$	3,129,283		$	3,140,066		$	3,011,136
Shares outstanding at period-end	16,878,220			17,071,052			17,334,547			17,592,009			17,722,507
Book value per common share	25.34		$	25.03		$	24.66		$	24.22		$	24.08
Tangible book value per common share(3)	17.34			17.09			16.82			16.47			16.37

All values are in US Dollars.

(1)	No covered loans for December 2021 and September 2021. FDIC Loss Share agreement terminated in September 2021.
(2)	Effective January 1, 2021, the Company adopted the current expected credit loss methodology ("CECL"); prior to January 1, 2021, the Company utilized the incurred credit loss methodology.
(3)	A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
	December 31,			September 30,			June 30,			March 31,			December 31,
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(Amounts in thousands)	2021			2021			2021			2021			2020
Allowance for Credit Losses ^(1)^				****	****	****	****	****	****	****	****	****	****	****	****
Beginning balance	$	29,877		$	31,857		$	34,563		$	26,182		$	27,277
Cumulative effect of adoption of ASU 2016-13		-			-			-			13,107			-
(Recovery of) provision forcredit/loan losses charged to operations		(846	)		(1,394	)		(2,230	)		(4,001	)		634
Charge-offs		(1,887	)		(1,255	)		(1,902	)		(1,730	)		(2,194	)
Recoveries		714			669			1,426			1,005			465
Net charge-offs		(1,173	)		(586	)		(476	)		(725	)		(1,729	)
Ending balance	$	27,858		$	29,877		$	31,857		$	34,563		$	26,182
Nonperforming Assets				****	****	****	****	****	****	****	****	****	****	****	****
Nonaccrual loans	$	20,768		$	22,070		$	24,085		$	26,106		$	22,003
Accruing loans past due 90 days or more		87			5			327			171			295
Troubled debt restructurings ("TDRs")^(2)^		1,367			359			133			308			187
Total nonperforming loans		22,222			22,434			24,545			26,585			22,485
OREO		1,015			1,240			1,324			1,740			2,083
Total nonperforming assets	$	23,237		$	23,674		$	25,869		$	28,325		$	24,568
Additional Information				****	****	****	****	****	****	****	****	****	****	****	****
Total Accruing TDRs^(3)^	$	8,652		$	8,185		$	8,309		$	9,027		$	10,248
Asset Quality Ratios				****	****	****	****	****	****	****	****	****	****	****	****
Nonperforming loans to total loans		1.03	%		1.04	%		1.14	%		1.24	%		1.03	%
Nonperforming assets to total assets		0.73	%		0.75	%		0.83	%		0.90	%		0.82	%
Allowance for credit/loan losses to nonperforming loans		125.36	%		133.18	%		129.79	%		130.01	%		116.44	%
Allowance for credit/loan losses to total loans		1.29	%		1.39	%		1.48	%		1.61	%		1.20	%
Annualized net charge-offs to average loans		0.22	%		0.11	%		0.09	%		0.14	%		0.26	%
(1)	Effective January 1, 2021, the Company adopted the current expected credit loss methodology ("CECL"); prior to January 1, 2021, the Company utilized the incurred credit loss methodology.
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(2)	Accruing TDRs restructured within the past six months or nonperforming
(3)	Accruing total TDRs