Delaware
|
000-14703
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16-1268674
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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of class
|
|
Trading Symbol
|
|
Name of exchange on which registered
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Common Stock, par value $0.01 per share
|
NBTB
|
The NASDAQ Stock Market LLC
|
Item 2.02 |
Results of Operations and Financial Condition
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Item 9.01 |
Financial Statements and Exhibits.
|
(a) |
Not applicable.
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(b) |
Not applicable.
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(c) |
Not applicable.
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(d) |
Exhibits.
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Exhibit No.
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Description
|
|
|
||
Press release of NBT Bancorp Inc. January 23, 2024
|
||
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
NBT BANCORP INC.
|
||
Date: January 23, 2024
|
By:
|
/s/ Scott A. Kingsley
|
Scott A. Kingsley
|
||
Executive Vice President and Chief Financial Officer
|
Contact:
|
John H. Watt, Jr., President and CEO
|
Scott A. Kingsley, Executive Vice President and CFO
|
|
NBT Bancorp Inc.
|
|
52 South Broad Street
|
|
Norwich, NY 13815
|
|
607-337-6589
|
Net Income
|
■ Net income of $30.4 million and diluted earnings per share of $0.64
■ Operating net income was $33.9 million and diluted operating earnings per share of
$0.721
|
Net Interest Income / NIM
|
■ Net interest income on a fully taxable equivalent (“FTE”) basis was $99.8 million1
■ Net interest margin
(“NIM”) on an FTE basis was 3.15%1, down 6 basis points (“bps”) from the prior quarter
■ Included in FTE net interest income was $2.6 million of
acquisition-related net accretion which positively impacted NIM by 8 bps
■ Earning asset yields of 4.79% were up 16 bps from the prior quarter
■ Total cost of funds of 1.72% was up 22 bps from the prior quarter
|
Noninterest Income
|
■ Excluding net securities gains (losses), noninterest income was $38.0 million, or
27.7% of total revenues
|
Loans and Credit Quality
|
■ Period end total loans of $9.65 billion as of December 31,
2023, up $1.50 billion from December 31, 2022, and included $1.18 billion of loans acquired from Salisbury Bancorp, Inc. (“Salisbury”)
■ Excluding loans acquired from Salisbury, loans grew $320.6 million, or 3.9%, year-over-year
■ Net charge-offs to average loans were 0.22%
■ Nonperforming loans to total loans were 0.39%, compared to
0.25% in the prior quarter and 0.26% in the fourth quarter of 2022
■ Allowance for loan losses to total loans was 1.19%
|
Deposits
|
■ Deposits were $10.97 billion as of December 31, 2023, up $1.47 billion from December 31, 2022, and included $1.31 billion in deposits acquired from Salisbury
■ Total cost of deposits was 1.51% for the fourth quarter of 2023, up 33 bps from
the third quarter
■ Full cycle to-date deposit beta of 28%
■ Composition of total deposits is diverse and granular with
over 563,000 accounts with an average per account balance of $19,483
|
Capital
|
■ Stockholders’ equity was $1.43 billion as of December 31, 2023
■ Tangible book value per share2 was $21.72 at December 31, 2023
■ Tangible equity to assets grew 11% to 7.93%1
■ CET1 ratio of 11.57%; Leverage ratio of 9.71%
|
■
|
Period end total loans were $9.65 billion at December 31, 2023, consistent with the end of the third quarter of 2023 and were $8.15 billion at December 31,
2022.
|
■
|
Period end total loans increased $1.50 billion from December 31, 2022, including loans acquired from Salisbury. Commercial and industrial loans increased $88.2
million to $1.35 billion; commercial real estate loans increased $819.0 million to $3.63 billion; and total consumer loans increased $593.4 million to $4.67 billion.
|
■
|
Commercial line of credit utilization rate was 20% at December 31, 2023, compared to 22% at September 30, 2023 and 21% at December 31, 2022.
|
■
|
Total deposits at December 31, 2023 were $10.97 billion, compared to $9.50 billion at December 31, 2022. The Company continued to experience incremental
migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments, during each quarter of 2023.
|
■
|
Loan to deposit ratio was 88.0% at December 31, 2023, compared to 85.8% at December 31, 2022. Consistent with historical trends and as seasonally expected,
ending deposits declined from September 30, 2023 to December 31, 2023.
|
■
|
Net interest income for the fourth quarter of 2023 was $99.2 million, which was up $4.3 million, or 4.5%, from the third quarter of 2023 and down $0.6 million, or 0.6%, from the fourth quarter of 2022. The increase in net interest income resulted from the benefit of the full quarter impact of the
Salisbury acquisition and was partially offset by the increase in cost of funds outpacing the improvement in asset yields during the quarter.
|
■
|
The NIM on an FTE basis for the fourth quarter of 2023 was 3.15%, a decrease of 6 bps from the third quarter of 2023, driven by an increase in the cost of
interest-bearing deposits, partly offset by an increase in average earning asset yields and a full quarter impact of acquisition-related net accretion. The NIM on an FTE basis decreased 53 bps from the fourth quarter of 2022 due to the
increase in the cost of interest-bearing deposits and higher short-term borrowings costs and average balances, partially offset by higher earning asset yields.
|
■
|
Earning asset yields for the three months ended December 31, 2023 increased 16 bps from the prior quarter to 4.79% and increased 77 bps from the same quarter
in the prior year. Average earning assets grew $761.0 million, or 6.4%, from the third quarter of 2023 due to the Salisbury acquisition and organic loan growth.
|
■
|
Total cost of deposits, including noninterest bearing deposits, was 1.51% for the fourth quarter of 2023, an increase of 33 bps from the prior quarter and up
134 bps from the same period in the prior year.
|
■
|
Total cost of funds for the three months ended December 31, 2023 was 1.72%, up 22 bps from the prior quarter and up 135 bps from the fourth quarter of 2022.
|
■
|
Net charge-offs to total average loans was 22 bps compared to 18 bps in both the prior quarter and in the fourth quarter of 2022. Net charge-offs for the
portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter and full year.
|
■
|
Nonperforming assets to total assets were 0.28% at December 31, 2023, compared to 0.18% at both September 30, 2023 and December 31, 2022. The increase in
nonperforming assets was attributable to a diversified, multi-tenant commercial real estate development relationship that was placed into a nonaccrual status in the fourth quarter of 2023, in which NBT is a participant. The relationship is
being actively managed and recent appraised values continue to support its carrying value, and as such, no specific reserve has been established.
|
■
|
Provision expense for the three months ended December 31, 2023 was $5.1 million, compared to $12.6 million for the third quarter of 2023 and $7.7 million for
the fourth quarter of 2022. Included in the provision expense in the third quarter of 2023 was $8.8 million of acquisition-related provision for loan losses.
|
■
|
The allowance for loan losses was $114.4 million, or 1.19% of total loans, at December 31, 2023, consistent with September 30, 2023 and 1.24% of total
loans at December 31, 2022. The allowance was consistent with the third quarter of 2023 and the increase in the allowance for loan losses from the fourth quarter of 2022 was due to $14.5 million of allowance for acquired Salisbury loans
which included both the $8.8 million of non-purchased credit deteriorated allowance recognized through the provision for loan losses and the $5.8 million of purchased credit deteriorated allowance reclassified from loans.
|
■
|
The reserve for unfunded loan commitments increased to $5.1 million at December 31, 2023 compared to the prior quarter-end at $4.8 million and to $5.1 million
at December 31, 2022. The provision for unfunded loan commitments in the third quarter of 2023 included $0.8 million of acquisition-related provision for unfunded loan commitments.
|
■
|
Total noninterest income, excluding securities gains (losses), was $38.0 million for the three months ended December 31, 2023, down $2.4 million from the
seasonally high third quarter, and $3.7 million higher, or 10.7%, from the fourth quarter of 2022.
|
■
|
Service charges on deposit accounts were higher than the prior quarter and the fourth quarter of 2022 due primarily to the Salisbury acquisition and new
account growth.
|
■
|
Retirement plan administration fees were down $1.6 million from the prior quarter and were $0.6 million higher than the fourth quarter of 2022. The decrease
from the prior quarter, as expected, was due to certain seasonal activity-based fees in the third quarter. The increase from the fourth quarter of 2022 included the impact from the acquisition of Retirement Direct, LLC on July 1, 2023.
|
■
|
Wealth management fees were consistent with the prior quarter as certain prior quarter seasonal activity-based fees were offset by the full quarter addition of
Salisbury revenues and were $1.1 million higher than the fourth quarter of 2022.
|
■
|
Insurance services were down $0.7 million from the third quarter which has comparatively higher levels of policy renewals than the fourth quarter.
|
■
|
Total noninterest expense was $92.8 million for the fourth quarter of 2023 compared to $90.8 million in the third quarter of 2023 and $79.5 million in the
fourth quarter of 2022. Total noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023, $7.9 million in the third quarter of 2023 and $1.0 million in the fourth quarter of 2022, and the $4.8 million
impairment of a minority interest equity investment in the fourth quarter of 2023 increased 5.9% compared to the previous quarter primarily due to a full quarter impact of the Salisbury acquisition and higher professional service fees and
increased 11.7% from the fourth quarter of 2022.
|
■
|
Salaries and benefits increased 1.6% from the prior quarter driven by the full quarter impact of the Salisbury acquisition and was partially offset by lower
quarterly incentive costs.
|
■
|
Technology and data services, professional fees and outside services, and advertising increased from the prior quarter and the fourth quarter of 2022 due to
the timing of initiatives that occurred following the completion of the Salisbury acquisition in the third quarter.
|
■
|
Amortization of intangible assets increased $0.5 million from the prior quarter and $1.6 million from the fourth quarter of 2022 primarily due to the
amortization of intangible assets related to the Salisbury acquisition.
|
■
|
FDIC assessment expense increased $0.2 million in the prior quarter primarily due to the acquisition of Salisbury and increased $1.1 million from the fourth
quarter of 2022 driven by the statutory increase in the FDIC assessment rate.
|
■
|
In the fourth quarter of 2023, the Company recorded a full $4.8 million ($0.08 per diluted share) impairment of its minority interest equity investment in a
provider of financial and technology services to residential solar equipment installers, due to the uncertainty in the realizability of the investment.
|
■
|
The effective tax rate was 23.5% for the fourth quarter of 2023 which was up from 22.4% in the third quarter of 2023 and 22.6% for the fourth quarter of 2022
and primarily to adjust to a full year tax rate for 2023 of 22.6%, including assessment of acquisition related items.
|
■
|
Tangible common equity to tangible assets1 was 7.93% at December 31, 2023. Tangible book value per share2 was $21.72 at December 31,
2023, $20.39 at September 30, 2023 and $20.65 at December 31, 2022.
|
■
|
Stockholders’ equity increased $252.1 million from December 31, 2022 driven by the Salisbury acquisition adding $161.7 million of capital, net income
generation of $118.8 million and a $29.1 million increase in accumulated other comprehensive income driven by the change in the market value of securities available for sale, partially offset by dividends declared of $55.9 million and the
repurchase of common stock of $4.9 million.
|
■
|
December 31, 2023, CET1 capital ratio of 11.57%, leverage ratio of 9.71% and total risk-based capital ratio of 14.75%.
|
■
|
On January 22, 2024, the Board of Directors approved a first-quarter cash dividend of $0.32 per share, which represents a $0.02 per quarter, or 6.7%, increase
over the dividend paid in the first quarter of 2023. The dividend will be paid on March 15, 2024 to stockholders of record as of March 1, 2024.
|
■
|
The Company purchased 155,500 shares of its common stock during 2023 at an average price of $31.79 per share under its previously announced share repurchase
program. The repurchase program under which these shares were purchased expired on December 31, 2023.
|
■
|
On December 18, 2023, the Board of Directors authorized and approved an amendment to the Company’s previously announced stock repurchase program. Pursuant to
the amended stock repurchase program, the Company may repurchase up to 2,000,000 of the currently outstanding shares of its common stock with all repurchases under the stock repurchase program to be made by December 31, 2025. The Company
may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes.
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Selected Financial Data
|
||||||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Profitability (reported)
|
||||||||||||||||||||
Diluted earnings per share
|
$
|
0.64
|
$
|
0.54
|
$
|
0.70
|
$
|
0.78
|
$
|
0.84
|
||||||||||
Weighted average diluted common shares outstanding
|
47,356,899
|
45,398,937
|
43,126,498
|
43,125,986
|
43,144,666
|
|||||||||||||||
Return on average assets3
|
0.89
|
%
|
0.76
|
%
|
1.02
|
%
|
1.16
|
%
|
1.23
|
%
|
||||||||||
Return on average equity3
|
8.79
|
%
|
7.48
|
%
|
9.91
|
%
|
11.47
|
%
|
12.30
|
%
|
||||||||||
Return on average tangible common equity1 3
|
13.08
|
%
|
10.73
|
%
|
13.13
|
%
|
15.31
|
%
|
16.54
|
%
|
||||||||||
Net interest margin1 3
|
3.15
|
%
|
3.21
|
%
|
3.27
|
%
|
3.55
|
%
|
3.68
|
%
|
||||||||||
12 Months Ended December 31,
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
Profitability (reported)
|
||||||||||||||||||||
Diluted earnings per share
|
$
|
2.65
|
$
|
3.52
|
||||||||||||||||
Weighted average diluted common shares outstanding
|
44,770,171
|
43,181,312
|
||||||||||||||||||
Return on average assets
|
0.95
|
%
|
1.29
|
%
|
||||||||||||||||
Return on average equity
|
9.34
|
%
|
12.67
|
%
|
||||||||||||||||
Return on average tangible common equity1
|
13.02
|
%
|
16.89
|
%
|
||||||||||||||||
Net interest margin1
|
3.29
|
%
|
3.34
|
%
|
||||||||||||||||
2023
|
|
2022
|
||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Profitability (operating)
|
||||||||||||||||||||
Diluted earnings per share1
|
$
|
0.72
|
$
|
0.84
|
$
|
0.80
|
$
|
0.88
|
$
|
0.86
|
||||||||||
Return on average assets1 3
|
0.99
|
%
|
1.19
|
%
|
1.17
|
%
|
1.31
|
%
|
1.26
|
%
|
||||||||||
Return on average equity1 3
|
9.79
|
%
|
11.65
|
%
|
11.40
|
%
|
12.95
|
%
|
12.61
|
%
|
||||||||||
Return on average tangible common equity1 3
|
14.49
|
%
|
16.43
|
%
|
15.08
|
%
|
17.27
|
%
|
16.95
|
%
|
||||||||||
12 Months Ended December 31,
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
Profitability (operating)
|
||||||||||||||||||||
Diluted earnings per share1
|
$
|
3.23
|
$
|
3.56
|
||||||||||||||||
Return on average assets1
|
1.16
|
%
|
1.30
|
%
|
||||||||||||||||
Return on average equity1
|
11.38
|
%
|
12.81
|
%
|
||||||||||||||||
Return on average tangible common equity1
|
15.78
|
%
|
17.06
|
%
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Balance sheet data
|
||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
31,378
|
$
|
459,296
|
$
|
31,878
|
$
|
68,045
|
$
|
30,862
|
||||||||||
Securities available for sale
|
1,430,858
|
1,399,032
|
1,453,926
|
1,512,008
|
1,527,225
|
|||||||||||||||
Securities held to maturity
|
905,267
|
914,520
|
912,876
|
906,824
|
919,517
|
|||||||||||||||
Net loans
|
9,536,313
|
9,552,774
|
8,257,724
|
8,164,328
|
8,049,347
|
|||||||||||||||
Total assets
|
13,309,040
|
13,827,628
|
11,890,497
|
11,839,730
|
11,739,296
|
|||||||||||||||
Total deposits
|
10,968,994
|
11,401,452
|
9,529,919
|
9,681,205
|
9,495,933
|
|||||||||||||||
Total borrowings
|
637,387
|
740,603
|
880,518
|
703,248
|
787,950
|
|||||||||||||||
Total liabilities
|
11,883,349
|
12,464,807
|
10,680,004
|
10,628,071
|
10,565,742
|
|||||||||||||||
Stockholders' equity
|
1,425,691
|
1,362,821
|
1,210,493
|
1,211,659
|
1,173,554
|
|||||||||||||||
Capital
|
||||||||||||||||||||
Equity to assets
|
10.71
|
%
|
9.86
|
%
|
10.18
|
%
|
10.23
|
%
|
10.00
|
%
|
||||||||||
Tangible equity ratio1
|
7.93
|
%
|
7.15
|
%
|
7.95
|
%
|
7.99
|
%
|
7.73
|
%
|
||||||||||
Book value per share
|
$
|
30.26
|
$
|
28.94
|
$
|
28.26
|
$
|
28.24
|
$
|
27.38
|
||||||||||
Tangible book value per share2
|
$
|
21.72
|
$
|
20.39
|
$
|
21.55
|
$
|
21.52
|
$
|
20.65
|
||||||||||
Leverage ratio
|
9.71
|
%
|
10.23
|
%
|
10.51
|
%
|
10.43
|
%
|
10.32
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
11.57
|
%
|
11.31
|
%
|
12.29
|
%
|
12.28
|
%
|
12.12
|
%
|
||||||||||
Tier 1 capital ratio
|
12.50
|
%
|
12.23
|
%
|
13.35
|
%
|
13.34
|
%
|
13.19
|
%
|
||||||||||
Total risk-based capital ratio
|
14.75
|
%
|
14.45
|
%
|
15.50
|
%
|
15.53
|
%
|
15.38
|
%
|
||||||||||
Common stock price (end of period)
|
$
|
41.91
|
$
|
31.69
|
$
|
31.85
|
$
|
33.71
|
$
|
43.42
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Asset Quality and Consolidated Loan Balances
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Asset quality
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
34,213
|
$
|
20,736
|
$
|
16,931
|
$
|
16,284
|
$
|
17,233
|
||||||||||
90 days past due and still accruing
|
3,661
|
3,528
|
2,755
|
2,328
|
3,823
|
|||||||||||||||
Total nonperforming loans
|
37,874
|
24,264
|
19,686
|
18,612
|
21,056
|
|||||||||||||||
Other real estate owned
|
-
|
-
|
179
|
105
|
105
|
|||||||||||||||
Total nonperforming assets
|
37,874
|
24,264
|
19,865
|
18,717
|
21,161
|
|||||||||||||||
Allowance for loan losses
|
114,400
|
114,601
|
100,400
|
100,250
|
100,800
|
|||||||||||||||
Asset quality ratios
|
||||||||||||||||||||
Allowance for loan losses to total loans
|
1.19
|
%
|
1.19
|
%
|
1.20
|
%
|
1.21
|
%
|
1.24
|
%
|
||||||||||
Total nonperforming loans to total loans
|
0.39
|
%
|
0.25
|
%
|
0.24
|
%
|
0.23
|
%
|
0.26
|
%
|
||||||||||
Total nonperforming assets to total assets
|
0.28
|
%
|
0.18
|
%
|
0.17
|
%
|
0.16
|
%
|
0.18
|
%
|
||||||||||
Allowance for loan losses to total nonperforming loans
|
302.05
|
%
|
472.31
|
%
|
510.01
|
%
|
538.63
|
%
|
478.72
|
%
|
||||||||||
Past due loans to total loans4
|
0.32
|
%
|
0.49
|
%
|
0.45
|
%
|
0.30
|
%
|
0.33
|
%
|
||||||||||
Net charge-offs to average loans3
|
0.22
|
%
|
0.18
|
%
|
0.17
|
%
|
0.19
|
%
|
0.18
|
%
|
||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Loan net charge-offs by line of business
|
||||||||||||||||||||
Commercial
|
$
|
1,107
|
$
|
(344
|
)
|
$
|
92
|
$
|
(252
|
)
|
$
|
(37
|
)
|
|||||||
Residential real estate and home equity
|
11
|
(75
|
)
|
(43
|
)
|
80
|
(79
|
)
|
||||||||||||
Indirect auto
|
399
|
451
|
273
|
423
|
445
|
|||||||||||||||
Residential solar
|
1,081
|
1,253
|
581
|
656
|
596
|
|||||||||||||||
Other consumer
|
2,729
|
2,919
|
2,553
|
2,904
|
2,752
|
|||||||||||||||
Total loan net charge-offs
|
$
|
5,327
|
$
|
4,204
|
$
|
3,456
|
$
|
3,811
|
$
|
3,677
|
||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Allowance for loan losses as a percentage of loans by segment
|
||||||||||||||||||||
Commercial & industrial
|
0.84
|
%
|
0.87
|
%
|
0.86
|
%
|
0.85
|
%
|
0.82
|
%
|
||||||||||
Commercial real estate
|
0.99
|
%
|
1.00
|
%
|
0.93
|
%
|
0.93
|
%
|
0.91
|
%
|
||||||||||
Residential real estate
|
0.84
|
%
|
0.79
|
%
|
0.73
|
%
|
0.73
|
%
|
0.72
|
%
|
||||||||||
Auto
|
0.83
|
%
|
0.82
|
%
|
0.80
|
%
|
0.77
|
%
|
0.81
|
%
|
||||||||||
Residential solar
|
3.28
|
%
|
3.19
|
%
|
3.09
|
%
|
3.04
|
%
|
3.21
|
%
|
||||||||||
Other consumer
|
4.70
|
%
|
5.23
|
%
|
5.98
|
%
|
6.19
|
%
|
6.27
|
%
|
||||||||||
Total
|
1.19
|
%
|
1.19
|
%
|
1.20
|
%
|
1.21
|
%
|
1.24
|
%
|
||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Loans by line of business
|
||||||||||||||||||||
Commercial & industrial
|
$
|
1,354,248
|
$
|
1,424,579
|
$
|
1,319,093
|
$
|
1,278,291
|
$
|
1,266,031
|
||||||||||
Commercial real estate
|
3,626,910
|
3,575,595
|
2,884,264
|
2,845,631
|
2,807,941
|
|||||||||||||||
Residential real estate
|
2,125,804
|
2,111,670
|
1,666,204
|
1,651,918
|
1,649,870
|
|||||||||||||||
Indirect auto
|
1,130,132
|
1,099,558
|
1,048,739
|
1,031,315
|
989,587
|
|||||||||||||||
Residential solar
|
917,755
|
934,082
|
926,365
|
920,084
|
856,798
|
|||||||||||||||
Home equity
|
337,214
|
340,777
|
310,897
|
308,219
|
314,124
|
|||||||||||||||
Other consumer
|
158,650
|
181,114
|
202,562
|
229,120
|
265,796
|
|||||||||||||||
Total loans
|
$
|
9,650,713
|
$
|
9,667,375
|
$
|
8,358,124
|
$
|
8,264,578
|
$
|
8,150,147
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||
Consolidated Balance Sheets
|
||||||||
(unaudited, dollars in thousands)
|
||||||||
December 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
173,811
|
$
|
166,488
|
||||
Short-term interest-bearing accounts
|
31,378
|
30,862
|
||||||
Equity securities, at fair value
|
37,591
|
30,784
|
||||||
Securities available for sale, at fair value
|
1,430,858
|
1,527,225
|
||||||
Securities held to maturity (fair value $814,524 and $812,647, respectively)
|
905,267
|
919,517
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
45,861
|
44,713
|
||||||
Loans held for sale
|
3,371
|
562
|
||||||
Loans
|
9,650,713
|
8,150,147
|
||||||
Less allowance for loan losses
|
114,400
|
100,800
|
||||||
Net loans
|
$
|
9,536,313
|
$
|
8,049,347
|
||||
Premises and equipment, net
|
80,675
|
69,047
|
||||||
Goodwill
|
361,851
|
281,204
|
||||||
Intangible assets, net
|
40,443
|
7,341
|
||||||
Bank owned life insurance
|
265,732
|
232,409
|
||||||
Other assets
|
395,889
|
379,797
|
||||||
Total assets
|
$
|
13,309,040
|
$
|
11,739,296
|
||||
Liabilities and stockholders' equity
|
||||||||
Demand (noninterest bearing)
|
$
|
3,413,829
|
$
|
3,617,324
|
||||
Savings, NOW and money market
|
6,230,456
|
5,444,837
|
||||||
Time
|
1,324,709
|
433,772
|
||||||
Total deposits
|
$
|
10,968,994
|
$
|
9,495,933
|
||||
Short-term borrowings
|
386,651
|
585,012
|
||||||
Long-term debt
|
29,796
|
4,815
|
||||||
Subordinated debt, net
|
119,744
|
96,927
|
||||||
Junior subordinated debt
|
101,196
|
101,196
|
||||||
Other liabilities
|
276,968
|
281,859
|
||||||
Total liabilities
|
$
|
11,883,349
|
$
|
10,565,742
|
||||
Total stockholders' equity
|
$
|
1,425,691
|
$
|
1,173,554
|
||||
Total liabilities and stockholders' equity
|
$
|
13,309,040
|
$
|
11,739,296
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest, fee and dividend income
|
||||||||||||||||
Interest and fees on loans
|
$
|
132,738
|
$
|
95,620
|
$
|
462,669
|
$
|
332,768
|
||||||||
Securities available for sale
|
7,208
|
7,831
|
29,812
|
29,653
|
||||||||||||
Securities held to maturity
|
5,374
|
5,050
|
20,681
|
17,582
|
||||||||||||
Other
|
5,594
|
671
|
9,627
|
4,067
|
||||||||||||
Total interest, fee and dividend income
|
$
|
150,914
|
$
|
109,172
|
$
|
522,789
|
$
|
384,070
|
||||||||
Interest expense
|
||||||||||||||||
Deposits
|
$
|
42,753
|
$
|
4,092
|
$
|
104,641
|
$
|
9,923
|
||||||||
Short-term borrowings
|
4,951
|
2,510
|
25,608
|
2,623
|
||||||||||||
Long-term debt
|
294
|
21
|
925
|
161
|
||||||||||||
Subordinated debt
|
1,795
|
1,346
|
6,076
|
5,424
|
||||||||||||
Junior subordinated debt
|
1,948
|
1,424
|
7,320
|
3,749
|
||||||||||||
Total interest expense
|
$
|
51,741
|
$
|
9,393
|
$
|
144,570
|
$
|
21,880
|
||||||||
Net interest income
|
$
|
99,173
|
$
|
99,779
|
$
|
378,219
|
$
|
362,190
|
||||||||
Provision for loan losses
|
$
|
5,126
|
$
|
7,677
|
$
|
16,524
|
$
|
17,147
|
||||||||
Provision for loan losses - acquisition day 1 non-PCD
|
-
|
-
|
8,750
|
-
|
||||||||||||
Total provision for loan losses
|
$
|
5,126
|
$
|
7,677
|
$
|
25,274
|
$
|
17,147
|
||||||||
Net interest income after provision for loan losses
|
$
|
94,047
|
$
|
92,102
|
$
|
352,945
|
$
|
345,043
|
||||||||
Noninterest income
|
||||||||||||||||
Service charges on deposit accounts
|
$
|
4,165
|
$
|
3,598
|
$
|
15,425
|
$
|
14,630
|
||||||||
Card services income
|
5,360
|
4,958
|
20,829
|
29,058
|
||||||||||||
Retirement plan administration fees
|
11,226
|
10,661
|
47,221
|
48,112
|
||||||||||||
Wealth management
|
9,152
|
8,017
|
34,763
|
33,311
|
||||||||||||
Insurance services
|
3,659
|
3,438
|
15,667
|
14,696
|
||||||||||||
Bank owned life insurance income
|
1,776
|
1,419
|
6,750
|
6,044
|
||||||||||||
Net securities gains (losses)
|
507
|
(217
|
)
|
(9,315
|
)
|
(1,131
|
)
|
|||||||||
Other
|
2,643
|
2,217
|
10,838
|
10,858
|
||||||||||||
Total noninterest income
|
$
|
38,488
|
$
|
34,091
|
$
|
142,178
|
$
|
155,578
|
||||||||
Noninterest expense
|
||||||||||||||||
Salaries and employee benefits
|
$
|
50,013
|
$
|
47,235
|
$
|
194,250
|
$
|
187,830
|
||||||||
Technology and data services
|
10,174
|
9,124
|
38,163
|
35,712
|
||||||||||||
Occupancy
|
7,175
|
6,521
|
28,408
|
26,282
|
||||||||||||
Professional fees and outside services
|
5,115
|
4,811
|
17,601
|
16,810
|
||||||||||||
Office supplies and postage
|
1,913
|
1,699
|
6,917
|
6,140
|
||||||||||||
FDIC assessment
|
1,860
|
798
|
6,257
|
3,197
|
||||||||||||
Advertising
|
1,213
|
879
|
3,054
|
2,822
|
||||||||||||
Amortization of intangible assets
|
2,131
|
538
|
4,734
|
2,263
|
||||||||||||
Loan collection and other real estate owned, net
|
503
|
957
|
2,618
|
2,647
|
||||||||||||
Reserve for unfunded loan commitments
|
300
|
(185
|
)
|
30
|
20
|
|||||||||||
Impairment of a minority interest equity investment
|
4,750
|
-
|
4,750
|
-
|
||||||||||||
Acquisition expenses
|
254
|
967
|
9,978
|
967
|
||||||||||||
Other
|
7,350
|
6,165
|
24,904
|
19,775
|
||||||||||||
Total noninterest expense
|
$
|
92,751
|
$
|
79,509
|
$
|
341,664
|
$
|
304,465
|
||||||||
Income before income tax expense
|
$
|
39,784
|
$
|
46,684
|
$
|
153,459
|
$
|
196,156
|
||||||||
Income tax expense
|
9,338
|
10,563
|
34,677
|
44,161
|
||||||||||||
Net income
|
$
|
30,446
|
$
|
36,121
|
$
|
118,782
|
$
|
151,995
|
||||||||
Earnings Per Share
|
||||||||||||||||
Basic
|
$
|
0.65
|
$
|
0.84
|
$
|
2.67
|
$
|
3.54
|
||||||||
Diluted
|
$
|
0.64
|
$
|
0.84
|
$
|
2.65
|
$
|
3.52
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Quarterly Consolidated Statements of Income
|
||||||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Interest, fee and dividend income
|
||||||||||||||||||||
Interest and fees on loans
|
$
|
132,738
|
$
|
122,097
|
$
|
106,935
|
$
|
100,899
|
$
|
95,620
|
||||||||||
Securities available for sale
|
7,208
|
7,495
|
7,493
|
7,616
|
7,831
|
|||||||||||||||
Securities held to maturity
|
5,374
|
5,281
|
4,991
|
5,035
|
5,050
|
|||||||||||||||
Other
|
5,594
|
2,221
|
1,170
|
642
|
671
|
|||||||||||||||
Total interest, fee and dividend income
|
$
|
150,914
|
$
|
137,094
|
$
|
120,589
|
$
|
114,192
|
$
|
109,172
|
||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
$
|
42,753
|
$
|
30,758
|
$
|
19,986
|
$
|
11,144
|
$
|
4,092
|
||||||||||
Short-term borrowings
|
4,951
|
7,612
|
8,126
|
4,919
|
2,510
|
|||||||||||||||
Long-term debt
|
294
|
294
|
290
|
47
|
21
|
|||||||||||||||
Subordinated debt
|
1,795
|
1,612
|
1,335
|
1,334
|
1,346
|
|||||||||||||||
Junior subordinated debt
|
1,948
|
1,923
|
1,767
|
1,682
|
1,424
|
|||||||||||||||
Total interest expense
|
$
|
51,741
|
$
|
42,199
|
$
|
31,504
|
$
|
19,126
|
$
|
9,393
|
||||||||||
Net interest income
|
$
|
99,173
|
$
|
94,895
|
$
|
89,085
|
$
|
95,066
|
$
|
99,779
|
||||||||||
Provision for loan losses
|
$
|
5,126
|
$
|
3,883
|
$
|
3,606
|
$
|
3,909
|
$
|
7,677
|
||||||||||
Provision for loan losses - acquisition day 1 non-PCD
|
-
|
8,750
|
-
|
-
|
-
|
|||||||||||||||
Total provision for loan losses
|
$
|
5,126
|
$
|
12,633
|
$
|
3,606
|
$
|
3,909
|
$
|
7,677
|
||||||||||
Net interest income after provision for loan losses
|
$
|
94,047
|
$
|
82,262
|
$
|
85,479
|
$
|
91,157
|
$
|
92,102
|
||||||||||
Noninterest income
|
||||||||||||||||||||
Service charges on deposit accounts
|
$
|
4,165
|
$
|
3,979
|
$
|
3,733
|
$
|
3,548
|
$
|
3,598
|
||||||||||
Card services income
|
5,360
|
5,503
|
5,121
|
4,845
|
4,958
|
|||||||||||||||
Retirement plan administration fees
|
11,226
|
12,798
|
11,735
|
11,462
|
10,661
|
|||||||||||||||
Wealth management
|
9,152
|
9,297
|
8,227
|
8,087
|
8,017
|
|||||||||||||||
Insurance services
|
3,659
|
4,361
|
3,716
|
3,931
|
3,438
|
|||||||||||||||
Bank owned life insurance income
|
1,776
|
1,568
|
1,528
|
1,878
|
1,419
|
|||||||||||||||
Net securities gains (losses)
|
507
|
(183
|
)
|
(4,641
|
)
|
(4,998
|
)
|
(217
|
)
|
|||||||||||
Other
|
2,643
|
2,913
|
2,626
|
2,656
|
2,217
|
|||||||||||||||
Total noninterest income
|
$
|
38,488
|
$
|
40,236
|
$
|
32,045
|
$
|
31,409
|
$
|
34,091
|
||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
$
|
50,013
|
$
|
49,248
|
$
|
46,834
|
$
|
48,155
|
$
|
47,235
|
||||||||||
Technology and data services
|
10,174
|
9,677
|
9,305
|
9,007
|
9,124
|
|||||||||||||||
Occupancy
|
7,175
|
7,090
|
6,923
|
7,220
|
6,521
|
|||||||||||||||
Professional fees and outside services
|
5,115
|
4,149
|
4,159
|
4,178
|
4,811
|
|||||||||||||||
Office supplies and postage
|
1,913
|
1,700
|
1,676
|
1,628
|
1,699
|
|||||||||||||||
FDIC assessment
|
1,860
|
1,657
|
1,344
|
1,396
|
798
|
|||||||||||||||
Advertising
|
1,213
|
667
|
525
|
649
|
879
|
|||||||||||||||
Amortization of intangible assets
|
2,131
|
1,609
|
458
|
536
|
538
|
|||||||||||||||
Loan collection and other real estate owned, net
|
503
|
569
|
691
|
855
|
957
|
|||||||||||||||
Reserve for unfunded loan commitments
|
300
|
460
|
(100
|
)
|
(630
|
)
|
(185
|
)
|
||||||||||||
Impairment of a minority interest equity investment
|
4,750
|
-
|
-
|
-
|
-
|
|||||||||||||||
Acquisition expenses
|
254
|
7,917
|
1,189
|
618
|
967
|
|||||||||||||||
Other
|
7,350
|
6,054
|
5,790
|
5,710
|
6,165
|
|||||||||||||||
Total noninterest expense
|
$
|
92,751
|
$
|
90,797
|
$
|
78,794
|
$
|
79,322
|
$
|
79,509
|
||||||||||
Income before income tax expense
|
$
|
39,784
|
$
|
31,701
|
$
|
38,730
|
$
|
43,244
|
$
|
46,684
|
||||||||||
Income tax expense
|
9,338
|
7,095
|
8,658
|
9,586
|
10,563
|
|||||||||||||||
Net income
|
$
|
30,446
|
$
|
24,606
|
$
|
30,072
|
$
|
33,658
|
$
|
36,121
|
||||||||||
Earnings Per Share
|
||||||||||||||||||||
Basic
|
$
|
0.65
|
$
|
0.54
|
$
|
0.70
|
$
|
0.78
|
$
|
0.84
|
||||||||||
Diluted
|
$
|
0.64
|
$
|
0.54
|
$
|
0.70
|
$
|
0.78
|
$
|
0.84
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||||||||||||||||||||||
Average Quarterly Balance Sheets
|
||||||||||||||||||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Average Balance
|
Yield /
Rates
|
Average Balance
|
Yield /
Rates
|
Average Balance
|
Yield /
Rates
|
Average Balance
|
Yield /
Rates
|
Average Balance
|
Yield /
Rates
|
|||||||||||||||||||||||||||||||
|
Q4 - 2023
|
Q3 - 2023
|
Q2 - 2023
|
Q1 - 2023
|
Q4 - 2022
|
|||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
319,907
|
5.59
|
%
|
$
|
121,384
|
4.26
|
%
|
$
|
28,473
|
3.62
|
%
|
$
|
34,215
|
2.26
|
%
|
$
|
39,573
|
3.31
|
%
|
||||||||||||||||||||
Securities taxable1
|
2,310,409
|
1.88
|
%
|
2,364,809
|
1.90
|
%
|
2,394,027
|
1.90
|
%
|
2,442,732
|
1.92
|
%
|
2,480,959
|
1.88
|
%
|
|||||||||||||||||||||||||
Securities tax-exempt 1 5
|
232,575
|
3.51
|
%
|
219,427
|
3.34
|
%
|
201,499
|
2.83
|
%
|
202,321
|
2.81
|
%
|
208,238
|
2.68
|
%
|
|||||||||||||||||||||||||
FRB and FHLB stock
|
47,994
|
8.98
|
%
|
53,841
|
6.76
|
%
|
51,454
|
7.12
|
%
|
41,144
|
4.45
|
%
|
32,903
|
4.11
|
%
|
|||||||||||||||||||||||||
Loans1 6
|
9,653,191
|
5.47
|
%
|
9,043,582
|
5.36
|
%
|
8,307,894
|
5.17
|
%
|
8,189,520
|
5.00
|
%
|
8,039,442
|
4.72
|
%
|
|||||||||||||||||||||||||
Total interest-earning assets
|
$
|
12,564,076
|
4.79
|
%
|
$
|
11,803,043
|
4.63
|
%
|
$
|
10,983,347
|
4.42
|
%
|
$
|
10,909,932
|
4.26
|
%
|
$
|
10,801,115
|
4.02
|
%
|
||||||||||||||||||||
Other assets
|
1,052,024
|
968,220
|
835,424
|
836,879
|
855,410
|
|||||||||||||||||||||||||||||||||||
Total assets
|
$
|
13,616,100
|
$
|
12,771,263
|
$
|
11,818,771
|
$
|
11,746,811
|
$
|
11,656,525
|
||||||||||||||||||||||||||||||
Liabilities and stockholders' equity
|
||||||||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
$
|
3,045,531
|
3.43
|
%
|
$
|
2,422,451
|
2.91
|
%
|
$
|
2,113,965
|
2.30
|
%
|
$
|
2,081,210
|
1.22
|
%
|
$
|
2,169,192
|
0.39
|
%
|
||||||||||||||||||||
NOW deposit accounts
|
1,645,401
|
0.80
|
%
|
1,513,420
|
0.57
|
%
|
1,463,953
|
0.38
|
%
|
1,598,834
|
0.36
|
%
|
1,604,096
|
0.33
|
%
|
|||||||||||||||||||||||||
Savings deposits
|
1,666,915
|
0.04
|
%
|
1,707,094
|
0.04
|
%
|
1,708,874
|
0.03
|
%
|
1,781,465
|
0.03
|
%
|
1,823,056
|
0.03
|
%
|
|||||||||||||||||||||||||
Time deposits
|
1,343,548
|
3.81
|
%
|
1,178,352
|
3.60
|
%
|
856,305
|
2.97
|
%
|
639,645
|
2.10
|
%
|
432,110
|
0.41
|
%
|
|||||||||||||||||||||||||
Total interest-bearing deposits
|
$
|
7,701,395
|
2.20
|
%
|
$
|
6,821,317
|
1.79
|
%
|
$
|
6,143,097
|
1.30
|
%
|
$
|
6,101,154
|
0.74
|
%
|
$
|
6,028,454
|
0.27
|
%
|
||||||||||||||||||||
Federal funds purchased
|
217
|
5.48
|
%
|
6,033
|
5.39
|
%
|
48,407
|
5.35
|
%
|
44,334
|
4.92
|
%
|
56,576
|
4.03
|
%
|
|||||||||||||||||||||||||
Repurchase agreements
|
82,387
|
1.59
|
%
|
71,516
|
1.40
|
%
|
55,627
|
1.08
|
%
|
71,340
|
0.08
|
%
|
76,334
|
0.11
|
%
|
|||||||||||||||||||||||||
Short-term borrowings
|
345,250
|
5.31
|
%
|
540,380
|
5.34
|
%
|
557,818
|
5.27
|
%
|
357,200
|
4.96
|
%
|
177,533
|
4.28
|
%
|
|||||||||||||||||||||||||
Long-term debt
|
29,809
|
3.91
|
%
|
29,800
|
3.91
|
%
|
29,773
|
3.91
|
%
|
7,299
|
2.61
|
%
|
3,817
|
2.18
|
%
|
|||||||||||||||||||||||||
Subordinated debt, net
|
119,531
|
5.96
|
%
|
109,160
|
5.86
|
%
|
97,081
|
5.52
|
%
|
96,966
|
5.58
|
%
|
97,839
|
5.46
|
%
|
|||||||||||||||||||||||||
Junior subordinated debt
|
101,196
|
7.64
|
%
|
101,196
|
7.54
|
%
|
101,196
|
7.00
|
%
|
101,196
|
6.74
|
%
|
101,196
|
5.58
|
%
|
|||||||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
8,379,785
|
2.45
|
%
|
$
|
7,679,402
|
2.18
|
%
|
$
|
7,032,999
|
1.80
|
%
|
$
|
6,779,489
|
1.14
|
%
|
$
|
6,541,749
|
0.57
|
%
|
||||||||||||||||||||
Demand deposits
|
3,535,815
|
3,498,424
|
3,316,955
|
3,502,489
|
3,658,965
|
|||||||||||||||||||||||||||||||||||
Other liabilities
|
326,857
|
287,751
|
251,511
|
274,517
|
290,895
|
|||||||||||||||||||||||||||||||||||
Stockholders' equity
|
1,373,643
|
1,305,686
|
1,217,306
|
1,190,316
|
1,164,916
|
|||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
13,616,100
|
$
|
12,771,263
|
$
|
11,818,771
|
$
|
11,746,811
|
$
|
11,656,525
|
||||||||||||||||||||||||||||||
Interest rate spread
|
2.34
|
%
|
2.45
|
%
|
2.62
|
%
|
3.12
|
%
|
3.45
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (FTE)1
|
3.15
|
%
|
3.21
|
%
|
3.27
|
%
|
3.55
|
%
|
3.68
|
%
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||||||
Average Year-to-Date Balance Sheets
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Rates
|
Balance
|
Interest
|
Rates
|
|||||||||||||||||||
Twelve Months Ended December 31,
|
2023
|
2022
|
||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
126,765
|
$
|
6,259
|
4.94
|
%
|
$
|
440,429
|
$
|
3,072
|
0.70
|
%
|
||||||||||||
Securities taxable1
|
2,377,596
|
45,176
|
1.90
|
%
|
2,424,925
|
43,229
|
1.78
|
%
|
||||||||||||||||
Securities tax-exempt1 5
|
214,053
|
6,730
|
3.14
|
%
|
233,515
|
5,070
|
2.17
|
%
|
||||||||||||||||
FRB and FHLB stock
|
48,641
|
3,368
|
6.92
|
%
|
27,040
|
995
|
3.68
|
%
|
||||||||||||||||
Loans1 6
|
8,803,228
|
463,290
|
5.26
|
%
|
7,772,962
|
333,008
|
4.28
|
%
|
||||||||||||||||
Total interest-earning assets
|
$
|
11,570,283
|
$
|
524,823
|
4.54
|
%
|
$
|
10,898,871
|
$
|
385,374
|
3.54
|
%
|
||||||||||||
Other assets
|
923,850
|
893,197
|
||||||||||||||||||||||
Total assets
|
$
|
12,494,133
|
$
|
11,792,068
|
||||||||||||||||||||
Liabilities and stockholders' equity
|
||||||||||||||||||||||||
Money market deposit accounts
|
$
|
2,418,450
|
$
|
62,475
|
2.58
|
%
|
$
|
2,447,978
|
$
|
4,955
|
0.20
|
%
|
||||||||||||
NOW deposit accounts
|
1,555,414
|
8,298
|
0.53
|
%
|
1,578,831
|
2,600
|
0.16
|
%
|
||||||||||||||||
Savings deposits
|
1,715,749
|
650
|
0.04
|
%
|
1,829,360
|
592
|
0.03
|
%
|
||||||||||||||||
Time deposits
|
1,006,867
|
33,218
|
3.30
|
%
|
464,912
|
1,776
|
0.38
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
$
|
6,696,480
|
$
|
104,641
|
1.56
|
%
|
$
|
6,321,081
|
$
|
9,923
|
0.16
|
%
|
||||||||||||
Federal funds purchased
|
24,575
|
1,269
|
5.16
|
%
|
14,644
|
588
|
4.02
|
%
|
||||||||||||||||
Repurchase agreements
|
70,251
|
747
|
1.06
|
%
|
69,561
|
67
|
0.10
|
%
|
||||||||||||||||
Short-term borrowings
|
450,377
|
23,592
|
5.24
|
%
|
46,371
|
1,968
|
4.24
|
%
|
||||||||||||||||
Long-term debt
|
24,247
|
925
|
3.81
|
%
|
6,579
|
161
|
2.45
|
%
|
||||||||||||||||
Subordinated debt, net
|
105,756
|
6,076
|
5.75
|
%
|
98,439
|
5,424
|
5.51
|
%
|
||||||||||||||||
Junior subordinated debt
|
101,196
|
7,320
|
7.23
|
%
|
101,196
|
3,749
|
3.70
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
$
|
7,472,882
|
$
|
144,570
|
1.93
|
%
|
$
|
6,657,871
|
$
|
21,880
|
0.33
|
%
|
||||||||||||
Demand deposits
|
3,463,608
|
3,696,957
|
||||||||||||||||||||||
Other liabilities
|
285,310
|
237,857
|
||||||||||||||||||||||
Stockholders' equity
|
1,272,333
|
1,199,383
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
12,494,133
|
$
|
11,792,068
|
||||||||||||||||||||
Net interest income (FTE)1
|
$
|
380,253
|
$
|
363,494
|
||||||||||||||||||||
Interest rate spread
|
2.61
|
%
|
3.21
|
%
|
||||||||||||||||||||
Net interest margin (FTE)1
|
3.29
|
%
|
3.34
|
%
|
||||||||||||||||||||
Taxable equivalent adjustment
|
$
|
2,034
|
$
|
1,304
|
||||||||||||||||||||
Net interest income
|
$
|
378,219
|
$
|
362,190
|
Non-GAAP measures
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Operating net income
|
||||||||||||||||||||
Net income
|
$
|
30,446
|
$
|
24,606
|
$
|
30,072
|
$
|
33,658
|
$
|
36,121
|
||||||||||
Acquisition expenses
|
254
|
7,917
|
1,189
|
618
|
967
|
|||||||||||||||
Acquisition-related provision for credit losses
|
-
|
8,750
|
-
|
-
|
-
|
|||||||||||||||
Acquisition-related reserve for unfunded loan commitments
|
-
|
836
|
-
|
-
|
-
|
|||||||||||||||
Impairment of a minority interest equity investment
|
4,750
|
-
|
-
|
-
|
-
|
|||||||||||||||
Securities (gains) losses
|
(507
|
)
|
183
|
4,641
|
4,998
|
217
|
||||||||||||||
Adjustment to net income
|
$
|
4,497
|
$
|
17,686
|
$
|
5,830
|
$
|
5,616
|
$
|
1,184
|
||||||||||
Adjustment to net income (net of tax)
|
$
|
3,435
|
$
|
13,730
|
$
|
4,525
|
$
|
4,341
|
$
|
913
|
||||||||||
Operating net income
|
$
|
33,881
|
$
|
38,336
|
$
|
34,597
|
$
|
37,999
|
$
|
37,034
|
||||||||||
Operating diluted earnings per share
|
$
|
0.72
|
$
|
0.84
|
$
|
0.80
|
$
|
0.88
|
$
|
0.86
|
||||||||||
|
||||||||||||||||||||
|
12 Months Ended December 31,
|
|||||||||||||||||||
|
2023
|
2022
|
||||||||||||||||||
Operating net income
|
||||||||||||||||||||
Net income
|
$
|
118,782
|
$
|
151,995
|
||||||||||||||||
Acquisition expenses
|
9,978
|
967
|
||||||||||||||||||
Acquisition-related provision for credit losses
|
8,750
|
-
|
||||||||||||||||||
Acquisition-related reserve for unfunded loan commitments
|
836
|
-
|
||||||||||||||||||
Impairment of a minority interest equity investment
|
4,750
|
-
|
||||||||||||||||||
Securities losses
|
9,315
|
1,131
|
||||||||||||||||||
Adjustment to net income
|
$
|
33,629
|
$
|
2,098
|
||||||||||||||||
Adjustment to net income (net of tax)
|
$
|
25,965
|
$
|
1,623
|
||||||||||||||||
Operating net income
|
$
|
144,747
|
$
|
153,618
|
||||||||||||||||
Operating diluted earnings per share
|
$
|
3.23
|
$
|
3.56
|
||||||||||||||||
|
||||||||||||||||||||
|
2023
|
2022
|
||||||||||||||||||
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
|||||||||||||||
FTE adjustment
|
||||||||||||||||||||
Net interest income
|
$
|
99,173
|
$
|
94,895
|
$
|
89,085
|
$
|
95,066
|
$
|
99,779
|
||||||||||
Add: FTE adjustment
|
669
|
568
|
402
|
395
|
392
|
|||||||||||||||
Net interest income (FTE)
|
$
|
99,842
|
$
|
95,463
|
$
|
89,487
|
$
|
95,461
|
$
|
100,171
|
||||||||||
Average earning assets
|
$
|
12,564,076
|
$
|
11,803,043
|
$
|
10,983,347
|
$
|
10,909,932
|
$
|
10,801,115
|
||||||||||
Net interest margin (FTE)3
|
3.15
|
%
|
3.21
|
%
|
3.27
|
%
|
3.55
|
%
|
3.68
|
% |
||||||||||
|
||||||||||||||||||||
|
12 Months Ended December 31,
|
|||||||||||||||||||
|
2023
|
2022
|
||||||||||||||||||
FTE adjustment
|
||||||||||||||||||||
Net interest income
|
$
|
378,219
|
$
|
362,190
|
||||||||||||||||
Add: FTE adjustment
|
2,034
|
1,304
|
||||||||||||||||||
Net interest income (FTE)
|
$
|
380,253
|
$
|
363,494
|
||||||||||||||||
Average earning assets
|
$
|
11,570,283
|
$
|
10,898,871
|
||||||||||||||||
Net interest margin (FTE)
|
3.29
|
%
|
3.34
|
%
|
Non-GAAP measures (continued)
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
||||||||||||||||
Tangible equity to tangible assets
|
||||||||||||||||||||
Total equity
|
$
|
1,425,691
|
$
|
1,362,821
|
$
|
1,210,493
|
$
|
1,211,659
|
$
|
1,173,554
|
||||||||||
Intangible assets
|
402,294
|
402,745
|
287,701
|
288,159
|
288,545
|
|||||||||||||||
Total assets
|
$ |
13,309,040
|
$
|
13,827,628
|
$
|
11,890,497
|
$
|
11,839,730
|
$
|
11,739,296
|
||||||||||
Tangible equity to tangible assets
|
7.93
|
%
|
7.15
|
%
|
7.95
|
%
|
7.99
|
%
|
7.73
|
%
|
||||||||||
|
||||||||||||||||||||
|
2023
|
2022
|
||||||||||||||||||
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
4th Q
|
|||||||||||||||
Return on average tangible common equity
|
||||||||||||||||||||
Net income
|
$
|
30,446
|
$
|
24,606
|
$
|
30,072
|
$
|
33,658
|
$
|
36,121
|
||||||||||
Amortization of intangible assets (net of tax)
|
1,599
|
1,206
|
344
|
402
|
404
|
|||||||||||||||
Net income, excluding intangibles amortization
|
$
|
32,045
|
$
|
25,812
|
$
|
30,416
|
$
|
34,060
|
$
|
36,525
|
||||||||||
|
||||||||||||||||||||
Average stockholders' equity
|
$
|
1,373,643
|
$
|
1,305,686
|
$
|
1,217,306
|
$
|
1,190,316
|
$
|
1,164,916
|
||||||||||
Less: average goodwill and other intangibles
|
401,978
|
350,912
|
287,974
|
288,354
|
288,856
|
|||||||||||||||
Average tangible common equity
|
$
|
971,665
|
$
|
954,774
|
$
|
929,332
|
$
|
901,962
|
$
|
876,060
|
||||||||||
Return on average tangible common equity3
|
13.08
|
%
|
10.73
|
%
|
13.13
|
%
|
15.31
|
%
|
16.54
|
%
|
||||||||||
|
||||||||||||||||||||
|
12 Months Ended December 31,
|
|||||||||||||||||||
|
2023
|
2022
|
||||||||||||||||||
Return on average tangible common equity
|
||||||||||||||||||||
Net income
|
$
|
118,782
|
$
|
151,995
|
||||||||||||||||
Amortization of intangible assets (net of tax)
|
3,551
|
1,698
|
||||||||||||||||||
Net income, excluding intangibles amortization
|
$
|
122,333
|
$
|
153,693
|
||||||||||||||||
|
||||||||||||||||||||
Average stockholders' equity
|
$
|
1,272,333
|
$
|
1,199,383
|
||||||||||||||||
Less: average goodwill and other intangibles
|
332,667
|
289,238
|
||||||||||||||||||
Average tangible common equity
|
$
|
939,666
|
$
|
910,145
|
||||||||||||||||
Return on average tangible common equity
|
13.02
|
%
|
16.89
|
%
|