☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
16-1268674
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
NBTB
|
The NASDAQ Stock Market LLC
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
PART I
|
FINANCIAL INFORMATION
|
|
ITEM 1.
|
FINANCIAL STATEMENTS (Unaudited)
|
|
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
10
|
||
ITEM 2.
|
27 |
|
ITEM 3.
|
40 |
|
ITEM 4.
|
40 |
|
|
||
PART II
|
OTHER INFORMATION
|
|
ITEM 1.
|
41
|
|
ITEM 1A.
|
41 | |
ITEM 2.
|
41 | |
ITEM 3.
|
41
|
|
ITEM 4.
|
41 | |
ITEM 5.
|
41 | |
ITEM 6.
|
41 |
|
|
||
42 |
AFS
|
available for sale
|
AIR
|
accrued interest receivable
|
AOCI
|
accumulated other comprehensive income (loss)
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
BP(S)
|
basis point(s)
|
C&I
|
Commercial & Industrial
|
CECL
|
current expected credit losses
|
CD
|
certificate of deposit
|
CME
|
Chicago Mercantile Exchange Clearing House
|
CRE
|
Commercial Real Estate
|
EPS
|
earnings per share
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FOMC
|
Federal Open Market Committee
|
FRB
|
Federal Reserve Board
|
FTE
|
fully taxable equivalent
|
GAAP
|
generally accepted accounting principles in the United States of America
|
HTM
|
held to maturity
|
LGD
|
loss given default
|
LIBOR
|
London Interbank Offered Rate
|
MMDA
|
money market deposit accounts
|
NASDAQ
|
The NASDAQ Stock Market LLC
|
NIM
|
net interest margin
|
NOW
|
negotiable order of withdrawal
|
OCC
|
Office of the Comptroller of the Currency
|
OREO
|
other real estate owned
|
PCD
|
purchased credit deteriorated
|
PD
|
probability of default
|
Salisbury
|
Salisbury Bancorp, Inc.
|
Salisbury Bank
|
Salisbury Bank and Trust Company
|
SEC
|
U.S. Securities and Exchange Commission
|
SOFR
|
Secured Overnight Financing Rate
|
TDRs
|
troubled debt restructurings
|
March 31,
|
December 31,
|
|||||||
(In thousands, except share and per share data) |
2024
|
2023
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
162,460
|
$
|
173,811
|
||||
Short-term interest-bearing accounts
|
156,632
|
31,378
|
||||||
Equity securities, at fair value
|
39,470
|
37,591
|
||||||
Securities available for sale, at fair value
|
1,418,471
|
1,430,858
|
||||||
Securities held to maturity (fair value $793,319 and $814,524, respectively)
|
890,863
|
905,267
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
37,336
|
45,861
|
||||||
Loans held for sale
|
3,263
|
3,371
|
||||||
Loans
|
9,688,077
|
9,650,713
|
||||||
Less allowance for loan losses
|
115,300
|
114,400
|
||||||
Net loans
|
$
|
9,572,777
|
$
|
9,536,313
|
||||
Premises and equipment, net
|
80,239
|
80,675
|
||||||
Goodwill
|
361,851
|
361,851
|
||||||
Intangible assets, net
|
38,968
|
40,443
|
||||||
Bank owned life insurance
|
267,476
|
265,732
|
||||||
Other assets
|
409,393
|
395,889
|
||||||
Total assets
|
$
|
13,439,199
|
$
|
13,309,040
|
||||
Liabilities
|
||||||||
Demand (noninterest bearing)
|
$
|
3,359,789
|
$
|
3,413,829
|
||||
Savings, NOW and money market
|
6,467,364
|
6,230,456
|
||||||
Time
|
1,368,136
|
1,324,709
|
||||||
Total deposits
|
$
|
11,195,289
|
$
|
10,968,994
|
||||
Short-term borrowings
|
267,134
|
386,651
|
||||||
Long-term debt
|
29,759
|
29,796
|
||||||
Subordinated debt, net
|
120,101
|
119,744
|
||||||
Junior subordinated debt
|
101,196
|
101,196
|
||||||
Other liabilities
|
284,305
|
276,968
|
||||||
Total liabilities
|
$
|
11,997,784
|
$
|
11,883,349
|
||||
Stockholders’ equity
|
||||||||
Preferred stock, $0.01
par value. 2,500,000 shares authorized
|
$
|
-
|
$
|
-
|
||||
Common stock, $0.01 par value. 100,000,000 shares authorized; 53,974,492
shares issued
|
540
|
540
|
||||||
Additional paid-in-capital
|
740,792
|
740,943
|
||||||
Retained earnings
|
1,040,563
|
1,021,831
|
||||||
Accumulated other comprehensive loss
|
(164,492
|
)
|
(160,934
|
)
|
||||
Common stock in treasury, at cost, 6,819,477 and 6,864,593 shares, respectively
|
(175,988
|
)
|
(176,689
|
)
|
||||
Total stockholders’ equity
|
$
|
1,441,415
|
$
|
1,425,691
|
||||
Total liabilities and stockholders’ equity
|
$
|
13,439,199
|
$
|
13,309,040
|
Three Months Ended
March 31,
|
||||||||
(In thousands, except per share data) |
2024
|
2023
|
||||||
Interest, fee and dividend income
|
||||||||
Interest and fees on loans
|
$
|
133,146
|
$
|
100,899
|
||||
Securities available for sale
|
7,124
|
7,616
|
||||||
Securities held to maturity
|
5,303
|
5,035
|
||||||
Other
|
1,364
|
642
|
||||||
Total interest, fee and dividend income
|
$
|
146,937
|
$
|
114,192
|
||||
Interest expense
|
||||||||
Deposits
|
$
|
44,339
|
$
|
11,144
|
||||
Short-term borrowings
|
3,421
|
4,919
|
||||||
Long-term debt
|
290
|
47
|
||||||
Subordinated debt
|
1,800
|
1,334
|
||||||
Junior subordinated debt
|
1,913
|
1,682
|
||||||
Total interest expense
|
$
|
51,763
|
$
|
19,126
|
||||
Net interest income
|
$
|
95,174
|
$
|
95,066
|
||||
Provision for loan losses
|
5,579
|
3,909
|
||||||
Net interest income after provision for loan losses
|
$
|
89,595
|
$
|
91,157
|
||||
Noninterest income
|
||||||||
Service charges on deposit accounts
|
$
|
4,117
|
$
|
3,548
|
||||
Card services income
|
5,195
|
4,845
|
||||||
Retirement plan administration fees
|
14,287
|
11,462
|
||||||
Wealth management
|
9,697
|
8,087
|
||||||
Insurance services
|
4,388
|
3,931
|
||||||
Bank owned life insurance income
|
2,352
|
1,878
|
||||||
Net securities gains (losses)
|
2,183
|
(4,998
|
)
|
|||||
Other
|
3,173
|
2,656
|
||||||
Total noninterest income
|
$
|
45,392
|
$
|
31,409
|
||||
Noninterest expense
|
||||||||
Salaries and employee benefits
|
$
|
55,704
|
$
|
48,155
|
||||
Technology and data services |
9,750 | 9,007 | ||||||
Occupancy
|
8,098
|
7,220
|
||||||
Professional fees and outside services
|
4,853
|
4,178
|
||||||
Office supplies and postage
|
1,865
|
1,628
|
||||||
FDIC assessment
|
1,735
|
1,396
|
||||||
Advertising
|
812
|
649
|
||||||
Amortization of intangible assets
|
2,168
|
536
|
||||||
Loan collection and other real estate owned, net
|
553
|
855
|
||||||
Acquisition expenses
|
- | 618 | ||||||
Other
|
6,235
|
5,080
|
||||||
Total noninterest expense
|
$
|
91,773
|
$
|
79,322
|
||||
Income before income tax expense
|
$
|
43,214
|
$
|
43,244
|
||||
Income tax expense
|
9,391
|
9,586
|
||||||
Net income
|
$
|
33,823
|
$
|
33,658
|
||||
Earnings per share
|
||||||||
Basic
|
$
|
0.72
|
$
|
0.78
|
||||
Diluted
|
$
|
0.71
|
$
|
0.78
|
Three Months Ended
March 31,
|
||||||||
(In thousands) |
2024
|
2023
|
||||||
Net income
|
$
|
33,823
|
$
|
33,658
|
||||
Other comprehensive income (loss), net of tax:
|
||||||||
Securities available for sale:
|
||||||||
Unrealized net holding (losses) gains arising during the period, gross
|
$
|
(5,292
|
)
|
$
|
15,725
|
|||
Tax effect
|
1,323
|
(3,931
|
)
|
|||||
Unrealized net holding (losses) gains arising during the period, net
|
$
|
(3,969
|
)
|
$
|
11,794
|
|||
Reclassification adjustment for net losses in net income, gross
|
$ | - | $ | 5,000 | ||||
Tax effect
|
- | (1,250 | ) | |||||
Reclassification adjustment for net losses in net income, net
|
$ | - | $ | 3,750 | ||||
|
||||||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross
|
$
|
96
|
$
|
114
|
||||
Tax effect
|
(24
|
)
|
(28
|
)
|
||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net
|
$
|
72
|
$
|
86
|
||||
Total securities available for sale, net
|
$
|
(3,897
|
)
|
$
|
15,630
|
|||
Pension and other benefits:
|
||||||||
Amortization of prior service cost and actuarial losses, gross
|
$
|
452
|
$
|
649
|
||||
Tax effect
|
(113
|
)
|
(163
|
)
|
||||
Amortization of prior service cost and actuarial losses, net
|
$
|
339
|
$
|
486
|
||||
Total pension and other benefits, net
|
$
|
339
|
$
|
486
|
||||
Total other comprehensive (loss) income
|
$
|
(3,558
|
)
|
$
|
16,116
|
|||
Comprehensive income
|
$
|
30,265
|
$
|
49,774
|
(In thousands, except share and per share data) |
Common
Stock
|
Additional
Paid-in-
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Common
Stock in
Treasury
|
Total
|
||||||||||||||||||
Balance at December 31, 2023
|
$
|
540
|
$
|
740,943
|
$
|
1,021,831
|
$
|
(160,934
|
)
|
$
|
(176,689
|
)
|
$
|
1,425,691
|
||||||||||
Net income
|
-
|
-
|
33,823
|
-
|
-
|
33,823
|
||||||||||||||||||
Cash dividends - $0.32
per share
|
-
|
-
|
(15,091
|
)
|
-
|
-
|
(15,091
|
)
|
||||||||||||||||
Purchase of 1,900 treasury shares |
- | - | - | - | (63 | ) | (63 | ) | ||||||||||||||||
Net issuance of 47,016
shares to employee
and other stock plans
|
-
|
(2,435
|
)
|
-
|
-
|
764
|
(1,671
|
)
|
||||||||||||||||
Stock-based compensation
|
-
|
2,284
|
-
|
-
|
-
|
2,284
|
||||||||||||||||||
Other comprehensive (loss)
|
-
|
-
|
-
|
(3,558
|
)
|
-
|
(3,558
|
)
|
||||||||||||||||
Balance at March 31, 2024
|
$
|
540
|
$
|
740,792
|
$
|
1,040,563
|
$
|
(164,492
|
)
|
$
|
(175,988
|
)
|
$
|
1,441,415
|
||||||||||
Balance at December 31, 2022
|
$
|
497
|
$
|
577,853
|
$
|
958,433
|
$
|
(190,034
|
)
|
$
|
(173,195
|
)
|
$
|
1,173,554
|
||||||||||
Cumulative effect adjustment for ASU 2022-02
implementation as of January 1, 2023
|
- | - | 502 | - | - | 502 | ||||||||||||||||||
Net income
|
-
|
-
|
33,658
|
-
|
-
|
33,658
|
||||||||||||||||||
Cash dividends - $0.30
per share
|
-
|
-
|
(12,871
|
)
|
-
|
-
|
(12,871
|
)
|
||||||||||||||||
Net issuance of 46,509
shares to employee
and other stock plans
|
-
|
(2,366
|
)
|
-
|
-
|
601
|
(1,765
|
)
|
||||||||||||||||
Stock-based compensation
|
-
|
2,465
|
-
|
-
|
-
|
2,465
|
||||||||||||||||||
Other comprehensive income | - | - | - | 16,116 | - | 16,116 | ||||||||||||||||||
Balance at March 31, 2023
|
$
|
497
|
$
|
577,952
|
$
|
979,722
|
$
|
(173,918
|
)
|
$
|
(172,594
|
)
|
$
|
1,211,659
|
Three Months Ended
March 31,
|
||||||||
(In thousands) |
2024
|
2023
|
||||||
Operating activities
|
||||||||
Net income
|
$
|
33,823
|
$
|
33,658
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Provision for loan losses
|
5,579
|
3,909
|
||||||
Depreciation and amortization of premises and equipment
|
2,855
|
2,579
|
||||||
Net amortization on securities
|
657
|
690
|
||||||
Amortization of intangible assets
|
2,168
|
536
|
||||||
Amortization of operating lease right-of-use assets
|
1,867
|
1,647
|
||||||
Excess tax benefit on stock-based compensation
|
(116
|
)
|
(231
|
)
|
||||
Stock-based compensation expense
|
2,284
|
2,465
|
||||||
Bank owned life insurance income
|
(2,352
|
)
|
(1,878
|
)
|
||||
Amortization of subordinated debt issuance costs
|
109
|
109
|
||||||
Proceeds from sale of loans held for sale
|
27,075
|
1,571
|
||||||
Originations of loans held for sale
|
(26,662
|
)
|
(1,418
|
)
|
||||
Net gain on sale of loans held for sale
|
(40
|
)
|
(16
|
)
|
||||
Net securities (gains) losses
|
(2,183
|
)
|
4,998
|
|||||
Net change in other assets and other liabilities
|
(8,319
|
)
|
(26,772
|
)
|
||||
Net cash provided by operating activities
|
$
|
36,745
|
$
|
21,847
|
||||
Investing activities
|
||||||||
Net cash used in acquisitions |
$ | (743 | ) | $ | (129 | ) | ||
Securities available for sale:
|
||||||||
Proceeds from maturities, calls and principal paydowns
|
26,542
|
30,683
|
||||||
Proceeds from sales |
2,284 | - | ||||||
Purchases
|
(19,676
|
)
|
-
|
|||||
Securities held to maturity:
|
||||||||
Proceeds from maturities, calls and principal paydowns
|
21,143
|
17,870
|
||||||
Purchases
|
(7,071
|
)
|
(5,494
|
)
|
||||
Equity securities: |
||||||||
Purchases
|
(7 | ) | - | |||||
Other:
|
||||||||
Net increase in loans
|
(42,308
|
)
|
(118,242
|
)
|
||||
Proceeds from Federal Home Loan Bank stock redemption
|
26,465
|
38,589
|
||||||
Purchases of Federal Home Loan Bank stock
|
(17,940
|
)
|
(39,218
|
)
|
||||
Proceeds from settlement of bank owned life insurance
|
608
|
1,773
|
||||||
Purchases of premises and equipment, net
|
(2,425
|
)
|
(1,392
|
)
|
||||
Net cash used in investing activities
|
$
|
(13,128
|
)
|
$
|
(75,560
|
)
|
||
Financing activities
|
||||||||
Net increase in deposits |
$
|
226,295
|
$
|
185,272
|
||||
Net decrease in short-term borrowings |
(119,517
|
)
|
(109,786
|
)
|
||||
Proceeds from long-term debt |
- | 25,000 | ||||||
Repayments of long-term debt
|
(37
|
)
|
(25
|
)
|
||||
Cash paid by employer for tax-withholding on stock issuance
|
(1,301
|
)
|
(1,432
|
)
|
||||
Purchase of treasury stock
|
(63
|
)
|
-
|
|||||
Cash dividends
|
(15,091
|
)
|
(12,871
|
)
|
||||
Net cash provided by financing activities
|
$
|
90,286
|
$
|
86,158
|
||||
Net increase in cash and cash equivalents
|
$
|
113,903
|
$
|
32,445
|
||||
Cash and cash equivalents at beginning of period
|
205,189
|
197,350
|
||||||
Cash and cash equivalents at end of period
|
$
|
319,092
|
$
|
229,795
|
|
Three Months Ended
March 31,
|
|||||||
2024
|
2023
|
|||||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest expense
|
$
|
55,313
|
$
|
17,066
|
||||
Income taxes paid, net of refund
|
3,500
|
15,072
|
||||||
Acquisitions: | ||||||||
Fair value of assets acquired | $ | 693 | $ | 150 |
1. |
Description of Business
|
2. |
Summary of Significant Accounting Policies
|
3. |
Recent Accounting Pronouncements
|
4. |
Securities
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of March 31, 2024
|
||||||||||||||||
U.S. treasury |
$ | 133,442 | $ | - | $ | (8,759 | ) | $ | 124,683 | |||||||
Federal agency
|
248,375
|
-
|
(35,071
|
)
|
213,304
|
|||||||||||
State & municipal
|
96,054
|
1
|
(10,022
|
)
|
86,033
|
|||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
387,479
|
3
|
(45,461
|
)
|
342,021
|
|||||||||||
U.S. government agency securities
|
71,036
|
10
|
(7,520
|
)
|
63,526
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
452,853
|
49
|
(50,135
|
)
|
402,767
|
|||||||||||
U.S. government agency securities
|
170,293
|
-
|
(26,034
|
)
|
144,259
|
|||||||||||
Corporate
|
48,451
|
-
|
(6,573
|
)
|
41,878
|
|||||||||||
Total AFS securities
|
$
|
1,607,983
|
$
|
63
|
$
|
(189,575
|
)
|
$
|
1,418,471
|
|||||||
As of December 31, 2023
|
||||||||||||||||
U.S. treasury |
$ | 133,302 | $ | - | $ | (8,278 | ) | $ | 125,024 | |||||||
Federal agency
|
248,384
|
-
|
(33,644
|
)
|
214,740
|
|||||||||||
State & municipal
|
96,251
|
11
|
(9,956
|
)
|
86,306
|
|||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
399,532
|
7
|
(44,264
|
)
|
355,275
|
|||||||||||
U.S. government agency securities
|
74,281
|
14
|
(7,302
|
)
|
66,993
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
452,715
|
15
|
(48,257
|
)
|
404,473
|
|||||||||||
U.S. government agency securities
|
162,171
|
-
|
(25,100
|
)
|
137,071
|
|||||||||||
Corporate
|
48,442
|
-
|
(7,466
|
)
|
40,976
|
|||||||||||
Total AFS securities
|
$
|
1,615,078
|
$
|
47
|
$
|
(184,267
|
)
|
$
|
1,430,858
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of March 31, 2024
|
||||||||||||||||
Federal agency
|
$
|
100,000
|
$
|
-
|
$
|
(18,440
|
)
|
$
|
81,560
|
|||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
224,344
|
-
|
(34,187
|
)
|
190,157
|
|||||||||||
U.S. government agency securities
|
16,742
|
2
|
(736
|
)
|
16,008
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
182,813
|
-
|
(13,466
|
)
|
169,347
|
|||||||||||
U.S. government agency securities
|
63,137
|
-
|
(11,206
|
)
|
51,931
|
|||||||||||
State & municipal
|
303,827
|
99
|
(19,610
|
)
|
284,316
|
|||||||||||
Total HTM securities
|
$
|
890,863
|
$
|
101
|
$
|
(97,645
|
)
|
$
|
793,319
|
|||||||
As of December 31, 2023
|
||||||||||||||||
Federal agency
|
$
|
100,000
|
$
|
-
|
$
|
(17,784
|
)
|
$
|
82,216
|
|||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
228,720
|
-
|
(31,613
|
)
|
197,107
|
|||||||||||
U.S. government agency securities
|
17,086
|
3
|
(566
|
)
|
16,523
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
187,457
|
57
|
(12,021
|
)
|
175,493
|
|||||||||||
U.S. government agency securities
|
63,878
|
-
|
(10,908
|
)
|
52,970
|
|||||||||||
State & municipal
|
308,126
|
211
|
(18,122
|
)
|
290,215
|
|||||||||||
Total HTM securities
|
$
|
905,267
|
$
|
271
|
$
|
(91,014
|
)
|
$
|
814,524
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2024
|
2023
|
||||||
Net (losses) and gains recognized on equity securities
|
$
|
(101
|
)
|
$
|
2
|
|||
Less: Net (losses) and gains recognized on equity securities sold during the period
|
-
|
-
|
||||||
Unrealized (losses) and gains recognized on equity securities still held
|
$
|
(101
|
)
|
$
|
2
|
(In thousands)
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||
AFS debt securities:
|
||||||||
Within one year
|
$
|
50,294
|
$
|
49,553
|
||||
From one to five years
|
567,513
|
508,211
|
||||||
From five to ten years
|
314,839
|
277,648
|
||||||
After ten years
|
675,337
|
583,059
|
||||||
Total AFS debt securities
|
$
|
1,607,983
|
$
|
1,418,471
|
||||
HTM debt securities:
|
||||||||
Within one year
|
$
|
98,660
|
$
|
98,460
|
||||
From one to five years
|
125,141
|
119,411
|
||||||
From five to ten years
|
242,973
|
210,783
|
||||||
After ten years
|
424,089
|
364,665
|
||||||
Total HTM debt securities
|
$
|
890,863
|
$
|
793,319
|
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
|||||||||||||||||||||||||||
As of March 31, 2024
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | - | $ | - | - | $ | 124,683 | $ | (8,759 | ) | 8 | $ | 124,683 | $ | (8,759 | ) | 8 | |||||||||||||||||||
Federal agency
|
-
|
-
|
-
|
213,304
|
(35,071
|
)
|
16
|
213,304
|
(35,071
|
)
|
16
|
|||||||||||||||||||||||||
State & municipal
|
-
|
-
|
-
|
85,266
|
(10,022
|
)
|
66
|
85,266
|
(10,022
|
)
|
66
|
|||||||||||||||||||||||||
Mortgage-backed
|
136
|
(1
|
)
|
9
|
404,618
|
(52,980
|
)
|
158
|
404,754
|
(52,981
|
)
|
167
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
11,033
|
(59
|
)
|
2
|
523,989
|
(76,110
|
)
|
120
|
535,022
|
(76,169
|
)
|
122
|
||||||||||||||||||||||||
Corporate
|
1,459
|
(2
|
)
|
1
|
40,419
|
(6,571
|
)
|
14
|
41,878
|
(6,573
|
)
|
15
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
12,628
|
$
|
(62
|
)
|
12
|
$
|
1,392,279
|
$
|
(189,513
|
)
|
382
|
$
|
1,404,907
|
$
|
(189,575
|
)
|
394
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency
|
$
|
-
|
$
|
-
|
-
|
$
|
81,560
|
$
|
(18,440
|
)
|
4
|
$
|
81,560
|
$
|
(18,440
|
)
|
4
|
|||||||||||||||||||
Mortgage-backed
|
11,905
|
(489
|
)
|
1
|
194,181
|
(34,434
|
)
|
33
|
206,086
|
(34,923
|
)
|
34
|
||||||||||||||||||||||||
Collateralized mortgage obligation |
8,189 | (58 | ) | 1 | 213,088 | (24,614 | ) | 52 | 221,277 | (24,672 | ) | 53 | ||||||||||||||||||||||||
State & municipal
|
4,423
|
(13
|
)
|
4
|
181,355
|
(19,597
|
)
|
205
|
185,778
|
(19,610
|
)
|
209
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
24,517
|
$
|
(560
|
)
|
6
|
$
|
670,184
|
$
|
(97,085
|
)
|
294
|
$
|
694,701
|
$
|
(97,645
|
)
|
300
|
||||||||||||||||||
As of December 31, 2023
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | - | $ | - | - | $ | 125,024 | $ | (8,278 | ) | 8 | $ | 125,024 | $ | (8,278 | ) | 8 | |||||||||||||||||||
Federal agency
|
-
|
-
|
-
|
214,740
|
(33,644
|
)
|
16
|
214,740
|
(33,644
|
)
|
16
|
|||||||||||||||||||||||||
State & municipal |
- | - | - | 85,528 | (9,956 | ) | 66 | 85,528 | (9,956 | ) | 66 | |||||||||||||||||||||||||
Mortgage-backed
|
53
|
(1
|
)
|
7
|
421,259
|
(51,565
|
)
|
156
|
421,312
|
(51,566
|
)
|
163
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
1,333
|
(6
|
)
|
2
|
536,678
|
(73,351
|
)
|
118
|
538,011
|
(73,357
|
)
|
120
|
||||||||||||||||||||||||
Corporate |
1,379 | (75 | ) | 1 | 39,597 | (7,391 | ) | 14 | 40,976 | (7,466 | ) | 15 | ||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
2,765
|
$
|
(82
|
)
|
10
|
$
|
1,422,826
|
$
|
(184,185
|
)
|
378
|
$
|
1,425,591
|
$
|
(184,267
|
)
|
388
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency
|
$
|
-
|
$
|
-
|
-
|
$
|
82,216
|
$
|
(17,784
|
)
|
4
|
$
|
82,216
|
$
|
(17,784
|
)
|
4
|
|||||||||||||||||||
Mortgage-backed |
12,221 | (365 | ) | 1 | 201,320 | (31,814 | ) | 33 | 213,541 | (32,179 | ) | 34 | ||||||||||||||||||||||||
Collateralized mortgage obligations |
- | - | - | 219,820 | (22,929 | ) | 54 | 219,820 | (22,929 | ) | 54 | |||||||||||||||||||||||||
State & municipal
|
14,422
|
(127
|
)
|
21
|
171,904
|
(17,995
|
)
|
189
|
186,326
|
(18,122
|
)
|
210
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
26,643
|
$
|
(492
|
)
|
22
|
$
|
675,260
|
$
|
(90,522
|
)
|
280
|
$
|
701,903
|
$
|
(91,014
|
)
|
302
|
5.
|
Loans
|
(In thousands)
|
March 31, 2024
|
December 31, 2023
|
||||||
Commercial & industrial
|
$
|
1,353,446
|
$
|
1,354,248
|
||||
Commercial real estate
|
3,646,739
|
3,626,910
|
||||||
Residential real estate
|
2,133,289
|
2,125,804
|
||||||
Home equity
|
328,673
|
337,214
|
||||||
Indirect auto
|
1,190,734
|
1,130,132
|
||||||
Residential solar
|
896,147
|
917,755
|
||||||
Other consumer
|
139,049
|
158,650
|
||||||
Total loans
|
$
|
9,688,077
|
$
|
9,650,713
|
6. |
Allowance for Credit Losses and Credit Quality of Loans
|
(In thousands)
|
Commercial
Loans
|
Consumer
Loans
|
Residential
|
Total
|
||||||||||||
Balance as of December
31, 2023
|
$
|
45,903
|
$
|
46,427
|
$
|
22,070
|
$
|
114,400
|
||||||||
Charge-offs
|
(985
|
)
|
(5,581
|
)
|
(114
|
)
|
(6,680
|
)
|
||||||||
Recoveries
|
198
|
1,651
|
152
|
2,001
|
||||||||||||
Provision
|
(644
|
)
|
4,922
|
1,301
|
5,579
|
|||||||||||
Ending balance as of March 31, 2024
|
$
|
44,472
|
$
|
47,419
|
$
|
23,409
|
$
|
115,300
|
||||||||
Balance as of January 1, 2023 (after adoption of ASC 2022-02)
|
$
|
34,662
|
$
|
50,951
|
$
|
14,539
|
$
|
100,152
|
||||||||
Charge-offs
|
(169
|
)
|
(5,342
|
)
|
(339
|
)
|
(5,850
|
)
|
||||||||
Recoveries
|
541
|
1,377
|
121
|
2,039
|
||||||||||||
Provision
|
1,006
|
1,834
|
1,069
|
3,909
|
||||||||||||
Ending balance as of March 31, 2023
|
$
|
36,040
|
$
|
48,820
|
$
|
15,390
|
$
|
100,250
|
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than 90
Days Past
Due
Accruing
|
Total Past
Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total Loans
|
|||||||||||||||||||||
As of March 31, 2024
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
1,711
|
$
|
750
|
$
|
-
|
$
|
2,461
|
$
|
3,079
|
$
|
1,398,831
|
$
|
1,404,371
|
||||||||||||||
CRE
|
1,929
|
64
|
-
|
1,993
|
18,743
|
3,424,810
|
3,445,546
|
|||||||||||||||||||||
Total commercial loans
|
$
|
3,640
|
$
|
814
|
$
|
-
|
$
|
4,454
|
$
|
21,822
|
$
|
4,823,641
|
$
|
4,849,917
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
10,376
|
$
|
1,676
|
$
|
1,045
|
$
|
13,097
|
$
|
2,274
|
$
|
1,142,702
|
$
|
1,158,073
|
||||||||||||||
Residential solar
|
3,940 | 1,362 | 446 | 5,748 | 125 | 890,274 | 896,147 | |||||||||||||||||||||
Other consumer
|
2,054
|
1,158
|
882
|
4,094
|
299
|
146,372
|
150,765
|
|||||||||||||||||||||
Total consumer loans
|
$
|
16,370
|
$
|
4,196
|
$
|
2,373
|
$
|
22,939
|
$
|
2,698
|
$
|
2,179,348
|
$
|
2,204,985
|
||||||||||||||
Residential
|
$
|
3,799
|
$
|
858
|
$
|
227
|
$
|
4,884
|
$
|
10,669
|
$
|
2,617,622
|
$
|
2,633,175
|
||||||||||||||
Total loans
|
$
|
23,809
|
$
|
5,868
|
$
|
2,600
|
$
|
32,277
|
$
|
35,189
|
$
|
9,620,611
|
$
|
9,688,077
|
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than 90
Days Past
Due
Accruing
|
Total Past
Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total Loans
|
|||||||||||||||||||||
As of December 31, 2023
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
414
|
$
|
33
|
$
|
1
|
$
|
448
|
$
|
3,441
|
$
|
1,393,616
|
$
|
1,397,505
|
||||||||||||||
CRE
|
803
|
835
|
-
|
1,638
|
18,126
|
3,413,984
|
3,433,748
|
|||||||||||||||||||||
Total commercial loans
|
$
|
1,217
|
$
|
868
|
$
|
1
|
$
|
2,086
|
$
|
21,567
|
$
|
4,807,600
|
$
|
4,831,253
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
10,115
|
$
|
2,011
|
$
|
1,067
|
$
|
13,193
|
$
|
2,106
|
$
|
1,084,143
|
$
|
1,099,442
|
||||||||||||||
Residential solar
|
3,074 | 1,301 | 915 | 5,290 | 245 | 912,220 | 917,755 | |||||||||||||||||||||
Other consumer
|
2,343
|
1,811
|
1,124
|
5,278
|
215
|
164,867
|
170,360
|
|||||||||||||||||||||
Total consumer loans
|
$
|
15,532
|
$
|
5,123
|
$
|
3,106
|
$
|
23,761
|
$
|
2,566
|
$
|
2,161,230
|
$
|
2,187,557
|
||||||||||||||
Residential
|
$
|
3,836
|
$
|
399
|
$
|
554
|
$
|
4,789
|
$
|
10,080
|
$
|
2,617,034
|
$
|
2,631,903
|
||||||||||||||
Total loans
|
$
|
20,585
|
$
|
6,390
|
$
|
3,661
|
$
|
30,636
|
$
|
34,213
|
$
|
9,585,864
|
$
|
9,650,713
|
(In thousands)
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of March 31, 2024
|
||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
60,820
|
$
|
214,985
|
$
|
243,619
|
$
|
231,577
|
$
|
146,409
|
$
|
129,310
|
$
|
318,078
|
$
|
2,585
|
$
|
1,347,383
|
||||||||||||||||||
Special mention
|
-
|
1,795
|
2,802
|
378
|
3,845
|
1,812
|
15,946
|
251
|
26,829
|
|||||||||||||||||||||||||||
Substandard
|
-
|
2,934
|
3,154
|
1,885
|
289
|
6,845
|
14,880
|
127
|
30,114
|
|||||||||||||||||||||||||||
Doubtful
|
-
|
21
|
1
|
19
|
-
|
4
|
-
|
-
|
45
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
60,820
|
$
|
219,735
|
$
|
249,576
|
$
|
233,859
|
$
|
150,543
|
$
|
137,971
|
$
|
348,904
|
$
|
2,963
|
$
|
1,404,371
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | (9 | ) | $ | (900 | ) | $ | - | $ | - | $ | (76 | ) | $ | - | $ | - | $ | (985 | ) | ||||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
81,048
|
$
|
362,660
|
$
|
492,661
|
$
|
546,787
|
$
|
449,533
|
$
|
1,013,118
|
$
|
308,977
|
$
|
37,243
|
$
|
3,292,027
|
||||||||||||||||||
Special mention
|
-
|
3,602
|
5,971
|
7,842
|
3,875
|
28,841
|
3,547
|
-
|
53,678
|
|||||||||||||||||||||||||||
Substandard
|
-
|
-
|
726
|
17,961
|
1,132
|
61,499
|
1,542
|
16,981
|
99,841
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
81,048
|
$
|
366,262
|
$
|
499,358
|
$
|
572,590
|
$
|
454,540
|
$
|
1,103,458
|
$
|
314,066
|
$
|
54,224
|
$
|
3,445,546
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ |
- | $ | - | $ | - | $ | - | ||||||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
175,451
|
$
|
430,001
|
$
|
331,202
|
$
|
138,915
|
$
|
36,140
|
$
|
43,045
|
$
|
-
|
$
|
-
|
$
|
1,154,754
|
||||||||||||||||||
Nonperforming
|
29
|
1,014
|
1,171
|
724
|
94
|
287
|
-
|
-
|
3,319
|
|||||||||||||||||||||||||||
Total auto
|
$
|
175,480
|
$
|
431,015
|
$
|
332,373
|
$
|
139,639
|
$
|
36,234
|
$
|
43,332
|
$
|
-
|
$
|
-
|
$
|
1,158,073
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | (274 | ) | $ | (493 | ) | $ | (226 | ) | $ | (12 | ) | $ | (122 | ) | $ | - | $ | - | $ | (1,127 | ) | ||||||||||||
Residential solar |
||||||||||||||||||||||||||||||||||||
By payment activity: |
||||||||||||||||||||||||||||||||||||
Performing |
$ | 1,365 | $ | 149,789 | $ | 422,422 | $ | 176,158 | $ | 63,222 | $ | 82,620 | $ | - | $ | - | $ | 895,576 | ||||||||||||||||||
Nonperforming |
- | - | 432 | 76 | - | 63 | - | - | 571 | |||||||||||||||||||||||||||
Total residential solar |
$ | 1,365 | $ | 149,789 | $ | 422,854 | $ | 176,234 | $ | 63,222 | $ | 82,683 | $ | - | $ | - | $ | 896,147 | ||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | (53 | ) | $ | (910 | ) | $ | (136 | ) | $ | - | $ | (196 | ) | $ | - | $ | - | $ | (1,295 | ) | |||||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
5,600
|
$
|
10,559
|
$
|
22,720
|
$
|
47,947
|
$
|
18,029
|
$
|
25,681
|
$
|
19,015
|
$
|
33
|
$
|
149,584
|
||||||||||||||||||
Nonperforming
|
-
|
5
|
184
|
650
|
39
|
295
|
1
|
7
|
1,181
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
5,600
|
$
|
10,564
|
$
|
22,904
|
$
|
48,597
|
$
|
18,068
|
$
|
25,976
|
$
|
19,016
|
$
|
40
|
$
|
150,765
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | (250 | ) | $ | (811 | ) | $ | (1,453 | ) | $ | (364 | ) | $ | (281 | ) | $ | - | $ | - | $ | (3,159 | ) | ||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
39,693
|
$
|
258,154
|
$
|
336,357
|
$
|
438,007
|
$
|
273,451
|
$
|
1,006,816
|
$
|
255,582
|
$
|
14,219
|
$
|
2,622,279
|
||||||||||||||||||
Nonperforming
|
-
|
626
|
825
|
1,605
|
272
|
7,568
|
-
|
-
|
10,896
|
|||||||||||||||||||||||||||
Total residential
|
$
|
39,693
|
$
|
258,780
|
$
|
337,182
|
$
|
439,612
|
$
|
273,723
|
$
|
1,014,384
|
$
|
255,582
|
$
|
14,219
|
$
|
2,633,175
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | (114 | ) | $ | - | $ | - | $ | (114 | ) | ||||||||||||||||
Total loans
|
$
|
364,006
|
$
|
1,436,145
|
$
|
1,864,247
|
$
|
1,610,531
|
$
|
996,330
|
$
|
2,407,804
|
$
|
937,568
|
$
|
71,446
|
$
|
9,688,077
|
||||||||||||||||||
Current-period gross charge-offs |
$ | - | $ | (586 | ) | $ | (3,114 | ) | $ | (1,815 | ) | $ | (376 | ) | $ | (789 | ) | $ | - | $ | - | $ | (6,680 | ) |
(In thousands)
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of December 31,
2023
|
||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
229,249
|
$
|
270,796
|
$
|
241,993
|
$
|
158,051
|
$
|
74,469
|
$
|
63,826
|
$
|
299,248
|
$
|
2,923
|
$
|
1,340,555
|
||||||||||||||||||
Special mention
|
420
|
1,672
|
277
|
3,524
|
87
|
1,854
|
19,489
|
-
|
27,323
|
|||||||||||||||||||||||||||
Substandard
|
1,496
|
2,461
|
1,609
|
282
|
2,266
|
5,632
|
14,266
|
1,607
|
29,619
|
|||||||||||||||||||||||||||
Doubtful
|
-
|
1
|
2
|
-
|
4
|
1
|
-
|
-
|
8
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
231,165
|
$
|
274,930
|
$
|
243,881
|
$
|
161,857
|
$
|
76,826
|
$
|
71,313
|
$
|
333,003
|
$
|
4,530
|
$
|
1,397,505
|
||||||||||||||||||
Current-period gross charge-offs | $ |
(24 | ) | $ |
(3,021 | ) | $ |
(5 | ) | $ |
(86 | ) | $ |
- | $ |
(600 | ) | $ |
- | $ |
- | $ |
(3,736 | ) | ||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
353,161
|
$
|
518,201
|
$
|
561,897
|
$
|
452,110
|
$
|
327,804
|
$
|
739,189
|
$
|
294,039
|
$
|
33,705
|
$
|
3,280,106
|
||||||||||||||||||
Special mention
|
3,577
|
4,472
|
10,711
|
7,055
|
9,967
|
39,460
|
2,970
|
-
|
78,212
|
|||||||||||||||||||||||||||
Substandard
|
370
|
731
|
21,807
|
1,146
|
2,996
|
37,418
|
10,962
|
-
|
75,430
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
357,108
|
$
|
523,404
|
$
|
594,415
|
$
|
460,311
|
$
|
340,767
|
$
|
816,067
|
$
|
307,971
|
$
|
33,705
|
$
|
3,433,748
|
||||||||||||||||||
Current-period gross charge-offs | $ |
- | $ |
- | $ |
- | $ |
- | $ |
(114 | ) | $ |
(304 | ) | $ |
- | $ |
- | $ |
(418 | ) | |||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
474,369
|
$
|
363,516
|
$
|
157,251
|
$
|
42,644
|
$
|
45,406
|
$
|
13,071
|
$
|
12
|
$
|
-
|
$
|
1,096,269
|
||||||||||||||||||
Nonperforming
|
532
|
1,241
|
830
|
190
|
306
|
74
|
-
|
-
|
3,173
|
|||||||||||||||||||||||||||
Total auto
|
$
|
474,901
|
$
|
364,757
|
$
|
158,081
|
$
|
42,834
|
$
|
45,712
|
$
|
13,145
|
$
|
12
|
$
|
-
|
$
|
1,099,442
|
||||||||||||||||||
Current-period gross charge-offs | $ |
(102 | ) | $ |
(1,183 | ) | $ |
(1,066 | ) | $ |
(340 | ) | $ |
(301 | ) | $ |
(295 | ) | $ |
- | $ |
- | $ |
(3,287 | ) | |||||||||||
Residential solar | ||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$ | 155,425 | $ | 430,855 | $ | 178,839 | $ | 65,382 | $ | 46,554 | $ | 39,540 | $ | - | $ | - | $ | 916,595 | ||||||||||||||||||
Nonperforming
|
- | 837 | 205 | 18 | 47 | 53 | - | - | 1,160 | |||||||||||||||||||||||||||
Total residential solar | $ | 155,425 | $ | 431,692 | $ | 179,044 | $ | 65,400 | $ | 46,601 | $ | 39,593 | $ | - | $ | - | $ | 917,755 | ||||||||||||||||||
Current-period gross charge-offs | $ |
(150 | ) | $ |
(1,930 | ) | $ |
(923 | ) | $ |
(45 | ) | $ |
(558 | ) | $ |
(345 | ) | $ |
- | $ |
- | $ |
(3,951 | ) | |||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
13,089
|
$
|
27,394
|
$
|
57,876
|
$
|
21,087
|
$
|
14,548
|
$
|
15,964
|
$
|
19,042
|
$
|
21
|
$
|
169,021
|
||||||||||||||||||
Nonperforming
|
-
|
244
|
685
|
144
|
56
|
161
|
4
|
45
|
1,339
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
13,089
|
$
|
27,638
|
$
|
58,561
|
$
|
21,231
|
$
|
14,604
|
$
|
16,125
|
$
|
19,046
|
$
|
66
|
$
|
170,360
|
||||||||||||||||||
Current-period gross charge-offs | $ |
(885 | ) | $ |
(3,744 | ) | $ |
(7,511 | ) | $ |
(1,329 | ) | $ |
(832 | ) | $ |
(568 | ) | $ |
- | $ |
- | $ |
(14,869 | ) | |||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
212,799
|
$
|
366,860
|
$
|
453,206
|
$
|
267,845
|
$
|
167,860
|
$
|
876,563
|
$
|
260,836
|
$
|
15,300
|
$
|
2,621,269
|
||||||||||||||||||
Nonperforming
|
134
|
430
|
1,121
|
385
|
591
|
7,460
|
-
|
513
|
10,634
|
|||||||||||||||||||||||||||
Total residential
|
$
|
212,933
|
$
|
367,290
|
$
|
454,327
|
$
|
268,230
|
$
|
168,451
|
$
|
884,023
|
$
|
260,836
|
$
|
15,813
|
$
|
2,631,903
|
||||||||||||||||||
Current-period gross charge-offs | $ |
- | $ |
- | $ |
(81 | ) | $ |
(30 | ) | $ |
- | $ |
(406 | ) | $ |
- | $ |
- | $ |
(517 | ) | ||||||||||||||
Total loans
|
$
|
1,444,621
|
$
|
1,989,711
|
$
|
1,688,309
|
$
|
1,019,863
|
$
|
692,961
|
$
|
1,840,266
|
$
|
920,868
|
$
|
54,114
|
$
|
9,650,713
|
||||||||||||||||||
Current-period gross charge-offs | $ |
(1,161 | ) | $ |
(9,878 | ) | $ |
(9,586 | ) | $ |
(1,830 | ) | $ |
(1,805 | ) | $ |
(2,518 | ) | $ |
- | $ |
- | $ |
(26,778 | ) |
Three Months Ended March 31, 2024
|
||||||||
Term Extension
|
||||||||
(Dollars in thousands)
|
Amortized Cost
|
% of Total Class of
Financing Receivables
|
||||||
Residential
|
$
|
294
|
0.011
|
%
|
||||
Total
|
$
|
294
|
Three Months Ended March 31, 2023
|
||||||||
Term Extension
|
||||||||
(Dollars in thousands)
|
Amortized Cost
|
% of Total Class of
Financing Receivables
|
||||||
Residential
|
$
|
43
|
0.002
|
%
|
||||
Total
|
$
|
43
|
Three Months Ended March 31, 2024
|
|
Loan Type
|
Term Extension
|
Residential
|
Added a weighted-average 7.4
years to the life of loans, which reduced monthly payment amounts for the borrowers.
|
Three Months Ended March 31, 2023
|
|
Loan Type
|
Term Extension
|
Residential
|
Added a weighted-average 18 years to the life of
loans, which reduced monthly payment amounts for the borrowers.
|
|
Payment Status (Amortized Cost Basis)
|
|||||||||||||||
(In thousands)
|
Current
|
31-60 Days
Past Due
|
61-90 Days
Past Due
|
Greater than 90
Days Past Due
|
||||||||||||
As of March 31, 2024
|
||||||||||||||||
Loan Type
|
||||||||||||||||
Residential
|
$
|
863
|
$
|
-
|
$
|
-
|
$
|
29
|
||||||||
Total
|
$
|
863
|
$
|
-
|
$
|
-
|
$
|
29
|
7. |
Short-Term Borrowings
|
(In thousands)
|
March 31, 2024
|
December 31, 2023
|
||||||
Federal funds purchased
|
$
|
78,000
|
$
|
-
|
||||
Securities sold under repurchase agreements
|
86,134
|
93,651
|
||||||
Other short-term borrowings
|
103,000
|
293,000
|
||||||
Total short-term borrowings
|
$
|
267,134
|
$
|
386,651
|
8. |
Defined Benefit Post-Retirement Plans
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended
March 31,
|
Three Months Ended
March 31,
|
|||||||||||||||
(In thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Components of net periodic (benefit) cost:
|
||||||||||||||||
Service cost
|
$
|
514
|
$
|
482
|
$
|
1
|
$
|
1
|
||||||||
Interest cost
|
1,005
|
1,010
|
55
|
56
|
||||||||||||
Expected return on plan assets
|
(1,983
|
)
|
(1,853
|
)
|
-
|
-
|
||||||||||
Net amortization
|
453
|
670
|
(1
|
)
|
(21
|
)
|
||||||||||
Total net periodic (benefit) cost
|
$
|
(11
|
)
|
$
|
309
|
$
|
55
|
$
|
36
|
9. |
Earnings Per Share
|
Three Months Ended
March 31,
|
||||||||
(In thousands, except per share data)
|
2024
|
2023
|
||||||
Basic EPS:
|
||||||||
Weighted average common shares outstanding
|
47,148
|
42,894
|
||||||
Net income available to common stockholders
|
$
|
33,823
|
$
|
33,658
|
||||
Basic EPS
|
$
|
0.72
|
$
|
0.78
|
||||
Diluted EPS:
|
||||||||
Weighted average common shares outstanding
|
47,148
|
42,894
|
||||||
Dilutive effect of common stock options and restricted stock
|
222
|
232
|
||||||
Weighted average common shares and common share equivalents
|
47,370
|
43,126
|
||||||
Net income available to common stockholders
|
$
|
33,823
|
$
|
33,658
|
||||
Diluted EPS
|
$
|
0.71
|
$
|
0.78
|
10. |
Reclassification Adjustments Out of Other Comprehensive Income (Loss)
|
Detail About AOCI Components
|
Amount Reclassified from AOCI
|
Affected Line Item in the
Consolidated Statements of
Comprehensive Income (Loss)
|
|||||||
Three Months Ended
|
|||||||||
(In thousands)
|
March 31, 2024
|
March 31, 2023
|
|||||||
AFS securities:
|
|||||||||
Losses on AFS securities
|
$ | - | $ | 5,000 | Net securities (gains) losses |
||||
Amortization of unrealized gains related to securities transfer
|
96
|
114
|
Interest income
|
||||||
Tax effect
|
$
|
(24
|
)
|
$
|
(1,278
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
72
|
$
|
3,836
|
|||||
Pension and other benefits:
|
|||||||||
Amortization of net losses
|
$
|
454
|
$
|
640
|
Other noninterest expense
|
||||
Amortization of prior service costs
|
(2
|
)
|
9
|
Other noninterest expense
|
|||||
Tax effect
|
$
|
(113
|
)
|
$
|
(163
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
339
|
$
|
486
|
|
||||
Total reclassifications, net of tax
|
$
|
411
|
$
|
4,322
|
11. |
Derivative Instruments and Hedging Activities
|
(In thousands)
|
Notional
Amount
|
Balance Sheet
Location
|
Fair
Value
|
Notional
Amount
|
Balance Sheet
Location
|
Fair
Value
|
||||||||||||
As of March 31, 2024
|
||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||
Interest rate derivatives
|
$
|
1,330,997
|
Other assets
|
$
|
114,205
|
$
|
1,330,997
|
Other liabilities
|
$
|
114,101
|
||||||||
Risk participation agreements
|
71,511
|
Other assets
|
84
|
15,571
|
Other liabilities
|
3
|
||||||||||||
Total derivatives not designated as hedging instruments
|
$
|
114,289
|
$
|
114,104
|
||||||||||||||
Netting adjustments(1)
|
24,321
|
-
|
||||||||||||||||
Net derivatives in the balance sheet
|
$
|
89,968
|
$
|
114,104
|
||||||||||||||
Derivatives not offset on the balance sheet
|
$
|
1,924
|
$
|
1,924
|
||||||||||||||
Cash collateral(2)
|
-
|
-
|
||||||||||||||||
Net derivative amounts
|
$
|
88,044
|
$
|
112,180
|
||||||||||||||
As of December 31, 2023
|
||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||
Interest rate derivatives
|
$
|
1,303,711
|
Other assets
|
$
|
95,972
|
$
|
1,303,711
|
Other liabilities
|
$
|
95,869
|
||||||||
Risk participation agreements
|
62,112
|
Other assets
|
19
|
16,146
|
Other liabilities
|
6
|
||||||||||||
Total derivatives not designated as hedging instruments
|
$
|
95,991
|
$
|
95,875
|
||||||||||||||
Netting adjustments(1)
|
20,849 | - | ||||||||||||||||
Net derivatives in the balance sheet
|
$ | 75,142 | $ | 95,875 | ||||||||||||||
Derivatives not offset on the balance sheet
|
$ | 2,930 | $ | 2,930 | ||||||||||||||
Cash collateral(2)
|
-
|
-
|
||||||||||||||||
Net derivative amounts
|
$
|
72,212
|
$
|
92,945
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2024
|
2023
|
||||||
Derivatives not designated as hedging instruments:
|
||||||||
Increase in other income
|
$
|
75
|
$
|
7
|
12. |
Fair Value Measurements and Fair Value of Financial Instruments
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
March 31, 2024
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities:
|
||||||||||||||||
U.S. treasury
|
$ |
124,683 | $ |
- | $ |
- | $ |
124,683 | ||||||||
Federal agency
|
|
-
|
|
213,304
|
|
-
|
|
213,304
|
||||||||
State & municipal
|
-
|
86,033
|
-
|
86,033
|
||||||||||||
Mortgage-backed
|
-
|
405,547
|
-
|
405,547
|
||||||||||||
Collateralized mortgage obligations
|
-
|
547,026
|
-
|
547,026
|
||||||||||||
Corporate
|
-
|
41,878
|
-
|
41,878
|
||||||||||||
Total AFS securities
|
$
|
124,683
|
$
|
1,293,788
|
$
|
-
|
$
|
1,418,471
|
||||||||
Equity securities
|
38,470
|
1,000
|
-
|
39,470
|
||||||||||||
Derivatives
|
-
|
89,968
|
-
|
89,968
|
||||||||||||
Total
|
$
|
163,153
|
$
|
1,384,756
|
$
|
-
|
$
|
1,547,909
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
-
|
$
|
114,104
|
$
|
-
|
$
|
114,104
|
||||||||
Total
|
$
|
-
|
$
|
114,104
|
$
|
-
|
$
|
114,104
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
December 31, 2023
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities:
|
||||||||||||||||
U.S. treasury
|
$ |
125,024 | $ |
- | $ |
- | $ |
125,024 | ||||||||
Federal agency
|
|
-
|
|
214,740
|
|
-
|
|
214,740
|
||||||||
State & municipal
|
-
|
86,306
|
-
|
86,306
|
||||||||||||
Mortgage-backed
|
-
|
422,268
|
-
|
422,268
|
||||||||||||
Collateralized mortgage obligations
|
-
|
541,544
|
-
|
541,544
|
||||||||||||
Corporate
|
-
|
40,976
|
-
|
40,976
|
||||||||||||
Total AFS securities
|
$
|
125,024
|
$
|
1,305,834
|
$
|
-
|
$
|
1,430,858
|
||||||||
Equity securities
|
36,591
|
1,000
|
-
|
37,591
|
||||||||||||
Derivatives
|
-
|
75,142
|
-
|
75,142
|
||||||||||||
Total
|
$
|
161,615
|
$
|
1,381,976
|
$
|
-
|
$
|
1,543,591
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
-
|
$
|
95,875
|
$
|
-
|
$
|
95,875
|
||||||||
Total
|
$
|
-
|
$
|
95,875
|
$
|
-
|
$
|
95,875
|
March 31, 2024
|
December 31, 2023
|
|||||||||||||||||||
(In thousands)
|
Fair Value
Hierarchy
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
HTM securities
|
2
|
$
|
890,863
|
$
|
793,319
|
$
|
905,267
|
$
|
814,524
|
|||||||||||
Net loans
|
3
|
9,576,040
|
9,173,300
|
9,539,684
|
9,216,162
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
2
|
$
|
1,368,136
|
$
|
1,348,934
|
$
|
1,324,709
|
$
|
1,285,999
|
|||||||||||
Long-term debt
|
2
|
29,759
|
29,315
|
29,796
|
29,416
|
|||||||||||||||
Subordinated debt
|
1
|
120,628
|
116,563
|
120,380
|
113,757
|
|||||||||||||||
Junior subordinated debt
|
2
|
101,196
|
103,202
|
101,196
|
102,337
|
13. |
Commitments and Contingencies
|
|
● |
Net income for the three months ended March 31, 2024 was $33.8 million, comparable to the first quarter of 2023 and up $3.4 million from the fourth quarter of 2023.
|
|
● |
Diluted earnings per share were $0.71 for the three months ended March 31, 2024, down $0.07 from the first quarter of 2023 and up $0.07 from the fourth quarter of 2023.
|
|
● |
Operating net income(1), a non-GAAP measure, which excludes acquisition expenses, securities gains (losses) and an impairment of a
minority interest equity investment, net of tax, was $32.1 million, or $0.68 per diluted common share, for the three months ended March 31, 2024, compared to $0.88 for the first quarter of 2023 and $0.72 for the fourth quarter of 2023.
|
|
● |
Excluding securities gains (losses), noninterest income represented 31% of total revenues and was $43.2 million for the three months ended March 31, 2024, up $5.2 million, or 13.8%, from the fourth quarter of 2023
and up $6.8 million, or 18.7%, from the first quarter of 2023.
|
|
● |
Period end total loans were $9.69 billion, up $37.4 million, or 1.6%, annualized, from December 31, 2023.
|
|
● |
Credit quality metrics including net charge-offs to average loans were 0.19%, annualized, and allowance for loan losses to total loans was 1.19%.
|
|
● |
Period end total deposits were $11.20 billion, up $226.3 million, or 2.1%, from December 31, 2023.
|
|
● |
Book value per share was $30.57 at March 31, 2024; tangible book value per share(1) was $22.07 at March 31, 2024, $21.72 at December
31, 2023 and $21.52 at March 31, 2023.
|
(1)
|
Non-GAAP measure - Refer to non-GAAP reconciliation below.
|
|
● |
The Company generated $0.68 per diluted share of operating earnings(1) in the first quarter of 2024, compared to $0.88 for the first
quarter of 2023 and $0.72 for the fourth quarter of 2023.
|
|
● |
Net interest income for the three months ended March 31, 2024 was $95.2 million, down $4.0 million, or 4.0% from the fourth quarter of 2023 and up $0.1 million, or 0.1%, from the first quarter of 2023.
|
|
● |
The Company recorded a provision for loan losses of $5.6 million ($0.09 per diluted share) for the three months ended March 31, 2024, compared to $3.9 million ($0.07 per diluted share) in the first quarter of 2023
and $5.1 million ($0.08 per diluted share) in the fourth quarter of 2023.
|
|
● |
Noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023 and $0.6 million of acquisition expenses in the first quarter of 2023, and the $4.8 million impairment of a
minority interest equity investment in the fourth quarter of 2023, increased 4.6% compared to the previous quarter and increased 16.6% from the first quarter of 2023.
|
|
● |
In the first quarter of 2023, the Company incurred a $5.0 million ($0.09 per diluted share) securities loss on the write-off of an AFS subordinated debt investment of a failed financial institution. In the first
quarter of 2024, the Company sold the previously written-off subordinated debt security and recognized a gain of $2.3 million ($0.04 per diluted share).
|
|
● |
The Company incurred acquisition expenses of $0.3 million and $0.6 million related to the merger with Salisbury in the fourth quarter of 2023 and the first quarter of 2023, respectively.
|
|
● |
In the fourth quarter of 2023, the Company recorded a $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 in other noninterest expense in the consolidated statements of income.
|
Three Months Ended
|
||||||||||||
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
||||||||||
Performance:
|
||||||||||||
Diluted earnings per share
|
$
|
0.71
|
$
|
0.64
|
$
|
0.78
|
||||||
Return on average assets(2)
|
1.02
|
%
|
0.89
|
%
|
1.16
|
%
|
||||||
Return on average equity(2)
|
9.52
|
%
|
8.79
|
%
|
11.47
|
%
|
||||||
Return on average tangible common equity(2)
|
13.87
|
%
|
13.08
|
%
|
15.31
|
%
|
||||||
Net interest margin, (FTE)(2)
|
3.14
|
%
|
3.15
|
%
|
3.55
|
%
|
||||||
Capital:
|
||||||||||||
Equity to assets
|
10.73
|
%
|
10.71
|
%
|
10.23
|
%
|
||||||
Tangible equity ratio
|
7.98
|
%
|
7.93
|
%
|
7.99
|
%
|
||||||
Book value per share
|
$
|
30.57
|
$
|
30.26
|
$
|
28.24
|
||||||
Tangible book value per share
|
$
|
22.07
|
$
|
21.72
|
$
|
21.52
|
||||||
Leverage ratio
|
10.09
|
%
|
9.71
|
%
|
10.43
|
%
|
||||||
Common equity tier 1 capital ratio
|
11.68
|
%
|
11.57
|
%
|
12.28
|
%
|
||||||
Tier 1 capital ratio
|
12.61
|
%
|
12.50
|
%
|
13.34
|
%
|
||||||
Total risk-based capital ratio
|
14.87
|
%
|
14.75
|
%
|
15.53
|
%
|
Three Months Ended
|
||||||||||||
(In thousands, except per share data)
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
|||||||||
Return on average tangible common equity:
|
||||||||||||
Net income
|
$
|
33,823
|
$
|
30,446
|
$
|
33,658
|
||||||
Amortization of intangible assets (net of tax)
|
1,626
|
1,599
|
402
|
|||||||||
Net income, excluding intangible amortization
|
$
|
35,449
|
$
|
32,045
|
$
|
34,060
|
||||||
Average stockholders’ equity
|
$
|
1,429,602
|
$
|
1,373,643
|
$
|
1,190,316
|
||||||
Less: average goodwill and other intangibles
|
401,756
|
401,978
|
288,354
|
|||||||||
Average tangible common equity
|
$
|
1,027,846
|
$
|
971,665
|
$
|
901,962
|
||||||
Return on average tangible common equity(2)
|
13.87
|
%
|
13.08
|
%
|
15.31
|
%
|
||||||
Tangible equity ratio:
|
||||||||||||
Stockholders’ equity
|
$
|
1,441,415
|
$
|
1,425,691
|
$
|
1,211,659
|
||||||
Intangibles
|
400,819
|
402,294
|
288,159
|
|||||||||
Assets
|
$
|
13,439,199
|
$
|
13,309,040
|
$
|
11,839,730
|
||||||
Tangible equity ratio
|
7.98
|
%
|
7.93
|
%
|
7.99
|
%
|
||||||
Tangible book value per share:
|
||||||||||||
Stockholders’ equity
|
$
|
1,441,415
|
$
|
1,425,691
|
$
|
1,211,659
|
||||||
Intangibles
|
400,819
|
402,294
|
288,159
|
|||||||||
Tangible equity
|
$
|
1,040,596
|
$
|
1,023,397
|
$
|
923,500
|
||||||
Diluted common shares outstanding
|
47,155
|
47,110
|
42,904
|
|||||||||
Tangible book value per share
|
$
|
22.07
|
$
|
21.72
|
$
|
21.52
|
||||||
Operating net income:
|
||||||||||||
Net income
|
$
|
33,823
|
$
|
30,446
|
$
|
33,658
|
||||||
Acquisition expenses
|
-
|
254
|
618
|
|||||||||
Impairment of a minority interest equity investment
|
-
|
4,750
|
-
|
|||||||||
Securities (gains) losses
|
(2,183
|
)
|
(507
|
)
|
4,998
|
|||||||
Adjustments to net income
|
$
|
(2,183
|
)
|
$
|
4,497
|
$
|
5,616
|
|||||
Adjustments to net income (net of tax)
|
$
|
(1,703
|
)
|
$
|
3,435
|
$
|
4,341
|
|||||
Operating net income
|
$
|
32,120
|
$
|
33,881
|
$
|
37,999
|
||||||
Operating diluted earnings per share
|
$
|
0.68
|
$
|
0.72
|
$
|
0.88
|
(2)
|
Annualized.
|
Three Months Ended
|
March 31, 2024
|
December 31, 2023
|
March 31, 2023
|
|||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Yield/
Rates
|
Average
Balance
|
Interest
|
Yield/
Rates
|
Average
Balance
|
Interest
|
Yield/
Rates
|
|||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
47,972
|
$
|
534
|
4.48
|
%
|
$
|
319,907
|
$
|
4,508
|
5.59
|
%
|
$
|
34,215
|
$
|
191
|
2.26
|
%
|
||||||||||||||||||
Securities taxable(1)
|
2,278,029
|
10,806
|
1.91
|
%
|
2,310,409
|
10,959
|
1.88
|
%
|
2,442,732
|
11,543
|
1.92
|
%
|
||||||||||||||||||||||||
Securities tax-exempt(1) (3)
|
230,468
|
2,052
|
3.58
|
%
|
232,575
|
2,055
|
3.51
|
%
|
202,321
|
1,402
|
2.81
|
%
|
||||||||||||||||||||||||
FRB and FHLB stock
|
42,296
|
830
|
7.89
|
%
|
47,994
|
1,086
|
8.98
|
%
|
41,144
|
451
|
4.45
|
%
|
||||||||||||||||||||||||
Loans(2) (3)
|
9,674,892
|
133,373
|
5.54
|
%
|
9,653,191
|
132,975
|
5.47
|
%
|
8,189,520
|
101,000
|
5.00
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
$
|
12,273,657
|
$
|
147,595
|
4.84
|
%
|
$
|
12,564,076
|
$
|
151,583
|
4.79
|
%
|
$
|
10,909,932
|
$
|
114,587
|
4.26
|
%
|
||||||||||||||||||
Other assets
|
1,055,386
|
1,052,024
|
836,879
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
13,329,043
|
$
|
13,616,100
|
$
|
11,746,811
|
||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
$
|
3,129,160
|
$
|
27,734
|
3.56
|
%
|
$
|
3,045,531
|
$
|
26,368
|
3.43
|
%
|
$
|
2,081,210
|
$
|
6,264
|
1.22
|
%
|
||||||||||||||||||
NOW deposit accounts
|
1,600,288
|
2,994
|
0.75
|
%
|
1,645,401
|
3,309
|
0.80
|
%
|
1,598,834
|
1,433
|
0.36
|
%
|
||||||||||||||||||||||||
Savings deposits
|
1,607,659
|
171
|
0.04
|
%
|
1,666,915
|
188
|
0.04
|
%
|
1,781,465
|
142
|
0.03
|
%
|
||||||||||||||||||||||||
Time deposits
|
1,352,559
|
13,440
|
4.00
|
%
|
1,343,548
|
12,888
|
3.81
|
%
|
639,645
|
3,305
|
2.10
|
%
|
||||||||||||||||||||||||
Total interest-bearing deposits
|
$
|
7,689,666
|
$
|
44,339
|
2.32
|
%
|
$
|
7,701,395
|
$
|
42,753
|
2.20
|
%
|
$
|
6,101,154
|
$
|
11,144
|
0.74
|
%
|
||||||||||||||||||
Federal funds purchased
|
19,769
|
272
|
5.53
|
%
|
217
|
3
|
5.48
|
%
|
44,334
|
538
|
4.92
|
%
|
||||||||||||||||||||||||
Repurchase agreements
|
82,419
|
317
|
1.55
|
%
|
82,387
|
330
|
1.59
|
%
|
71,340
|
14
|
0.08
|
%
|
||||||||||||||||||||||||
Short-term borrowings
|
213,390
|
2,832
|
5.34
|
%
|
345,250
|
4,618
|
5.31
|
%
|
357,200
|
4,367
|
4.96
|
%
|
||||||||||||||||||||||||
Long-term debt
|
29,772
|
290
|
3.92
|
%
|
29,809
|
294
|
3.91
|
%
|
7,299
|
47
|
2.61
|
%
|
||||||||||||||||||||||||
Subordinated debt, net
|
119,873
|
1,800
|
6.04
|
%
|
119,531
|
1,795
|
5.96
|
%
|
96,966
|
1,334
|
5.58
|
%
|
||||||||||||||||||||||||
Junior subordinated debt
|
101,196
|
1,913
|
7.60
|
%
|
101,196
|
1,948
|
7.64
|
%
|
101,196
|
1,682
|
6.74
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
8,256,085
|
$
|
51,763
|
2.52
|
%
|
$
|
8,379,785
|
$
|
51,741
|
2.45
|
%
|
$
|
6,779,489
|
$
|
19,126
|
1.14
|
%
|
||||||||||||||||||
Demand deposits
|
3,356,607
|
3,535,815
|
3,502,489
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
286,749
|
326,857
|
274,517
|
|||||||||||||||||||||||||||||||||
Stockholders’ equity
|
1,429,602
|
1,373,643
|
1,190,316
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
13,329,043
|
$
|
13,616,100
|
$
|
11,746,811
|
||||||||||||||||||||||||||||||
Net interest income (FTE)
|
$
|
95,832
|
$
|
99,842
|
$
|
95,461
|
||||||||||||||||||||||||||||||
Interest rate spread
|
2.32
|
%
|
2.34
|
%
|
3.12
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (FTE)
|
3.14
|
%
|
3.15
|
%
|
3.55
|
%
|
||||||||||||||||||||||||||||||
Taxable equivalent adjustment
|
$
|
658
|
$
|
669
|
$
|
395
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
95,174
|
$
|
99,173
|
$
|
95,066
|
(1)
|
Securities are shown at average amortized cost.
|
(2)
|
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
|
(3)
|
Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
|
Three Months Ended March 31,
|
Increase (Decrease)
2024 over 2023
|
|||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Short-term interest-bearing accounts
|
$
|
100
|
$
|
243
|
$
|
343
|
||||||
Securities taxable
|
(691
|
)
|
(46
|
)
|
(737
|
)
|
||||||
Securities tax-exempt
|
219
|
431
|
650
|
|||||||||
FRB and FHLB stock
|
13
|
366
|
379
|
|||||||||
Loans
|
20,254
|
12,119
|
32,373
|
|||||||||
Total FTE interest income
|
$
|
19,895
|
$
|
13,113
|
$
|
33,008
|
||||||
Money market deposit accounts
|
$
|
4,460
|
$
|
17,010
|
$
|
21,470
|
||||||
NOW deposit accounts
|
1
|
1,560
|
1,561
|
|||||||||
Savings deposits
|
(15
|
)
|
44
|
29
|
||||||||
Time deposits
|
5,587
|
4,548
|
10,135
|
|||||||||
Federal funds purchased
|
(327
|
)
|
61
|
(266
|
)
|
|||||||
Repurchase agreements
|
3
|
300
|
303
|
|||||||||
Short-term borrowings
|
(1,856
|
)
|
321
|
(1,535
|
)
|
|||||||
Long-term debt
|
209
|
34
|
243
|
|||||||||
Subordinated debt, net
|
345
|
121
|
466
|
|||||||||
Junior subordinated debt
|
-
|
231
|
231
|
|||||||||
Total FTE interest expense
|
$
|
8,407
|
$
|
24,230
|
$
|
32,637
|
||||||
Change in FTE net interest income
|
$
|
11,488
|
$
|
(11,117
|
)
|
$
|
371
|
Three Months Ended March 31,
|
||||||||
(In thousands)
|
2024
|
2023
|
||||||
Service charges on deposit accounts
|
$
|
4,117
|
$
|
3,548
|
||||
Card services income
|
5,195
|
4,845
|
||||||
Retirement plan administration fees
|
14,287
|
11,462
|
||||||
Wealth management
|
9,697
|
8,087
|
||||||
Insurance services
|
4,388
|
3,931
|
||||||
Bank owned life insurance income
|
2,352
|
1,878
|
||||||
Net securities gains (losses)
|
2,183
|
(4,998
|
)
|
|||||
Other
|
3,173
|
2,656
|
||||||
Total noninterest income
|
$
|
45,392
|
$
|
31,409
|
Three Months Ended March 31,
|
||||||||
(In thousands)
|
2024
|
2023
|
||||||
Salaries and employee benefits
|
$
|
55,704
|
$
|
48,155
|
||||
Technology and data services
|
9,750
|
9,007
|
||||||
Occupancy
|
8,098
|
7,220
|
||||||
Professional fees and outside services
|
4,853
|
4,178
|
||||||
Office supplies and postage
|
1,865
|
1,628
|
||||||
FDIC assessment
|
1,735
|
1,396
|
||||||
Advertising
|
812
|
649
|
||||||
Amortization of intangible assets
|
2,168
|
536
|
||||||
Loan collection and other real estate owned, net
|
553
|
855
|
||||||
Acquisition expenses
|
-
|
618
|
||||||
Other
|
6,235
|
5,080
|
||||||
Total noninterest expense
|
$
|
91,773
|
$
|
79,322
|
March 31, 2024
|
December 31, 2023
|
|||||||
Mortgage-backed securities:
|
||||||||
With maturities 15 years or less
|
12
|
%
|
12
|
%
|
||||
With maturities greater than 15 years
|
10
|
%
|
10
|
%
|
||||
Collateral mortgage obligations
|
36
|
%
|
36
|
%
|
||||
Municipal securities
|
17
|
%
|
17
|
%
|
||||
U.S. agency notes
|
21
|
%
|
21
|
%
|
||||
Corporate
|
2
|
%
|
2
|
%
|
||||
Equity securities
|
2
|
%
|
2
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
(In thousands)
|
March 31, 2024
|
December 31, 2023
|
||||||
Commercial & industrial
|
$
|
1,353,446
|
$
|
1,354,248
|
||||
Commercial real estate
|
3,646,739
|
3,626,910
|
||||||
Residential real estate
|
2,133,289
|
2,125,804
|
||||||
Home equity
|
328,673
|
337,214
|
||||||
Indirect auto
|
1,190,734
|
1,130,132
|
||||||
Residential solar
|
896,147
|
917,755
|
||||||
Other consumer
|
139,049
|
158,650
|
||||||
Total loans
|
$
|
9,688,077
|
$
|
9,650,713
|
(1)
|
Loans are summarized by business line which do not align to how the Company assesses credit risk in the allowance for credit losses.
|
March 31, 2024
|
December 31, 2023
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Nonaccrual loans:
|
||||||||||||||||
Commercial
|
$
|
21,822
|
62
|
%
|
$
|
21,567
|
63
|
%
|
||||||||
Residential
|
10,153
|
29
|
%
|
9,632
|
28
|
%
|
||||||||||
Consumer
|
2,698
|
8
|
%
|
2,566
|
8
|
%
|
||||||||||
Troubled loan modifications
|
516
|
1
|
%
|
448
|
1
|
%
|
||||||||||
Total nonaccrual loans
|
$
|
35,189
|
100
|
%
|
$
|
34,213
|
100
|
%
|
||||||||
Loans over 90 days past due and still accruing:
|
||||||||||||||||
Commercial
|
$
|
-
|
-
|
$
|
1
|
-
|
||||||||||
Residential
|
227
|
9
|
%
|
554
|
15
|
%
|
||||||||||
Consumer
|
2,373
|
91
|
%
|
3,106
|
85
|
%
|
||||||||||
Total loans over 90 days past due and still accruing
|
$
|
2,600
|
100
|
%
|
$
|
3,661
|
100
|
%
|
||||||||
Total nonperforming loans
|
$
|
37,789
|
$
|
37,874
|
||||||||||||
OREO
|
-
|
-
|
||||||||||||||
Total nonperforming assets
|
$
|
37,789
|
$
|
37,874
|
||||||||||||
Total nonaccrual loans to total loans
|
0.36
|
%
|
0.35
|
%
|
||||||||||||
Total nonperforming loans to total loans
|
0.39
|
%
|
0.39
|
%
|
||||||||||||
Total nonperforming assets to total assets
|
0.28
|
%
|
0.28
|
%
|
||||||||||||
Total allowance for loan losses to total nonperforming loans
|
305.12
|
%
|
302.05
|
%
|
||||||||||||
Total allowance for loan losses to nonaccrual loans
|
327.66
|
%
|
334.38
|
%
|
Capital Measurements
|
March 31, 2024
|
December 31, 2023
|
||||||
Tier 1 leverage ratio
|
10.09
|
%
|
9.71
|
%
|
||||
Common equity tier 1 capital ratio
|
11.68
|
%
|
11.57
|
%
|
||||
Tier 1 capital ratio
|
12.61
|
%
|
12.50
|
%
|
||||
Total risk-based capital ratio
|
14.87
|
%
|
14.75
|
%
|
||||
Cash dividends as a percentage of net income
|
44.62
|
%
|
47.05
|
%
|
||||
Per common share:
|
||||||||
Book value
|
$
|
30.57
|
$
|
30.26
|
||||
Tangible book value(1)
|
$
|
22.07
|
$
|
21.72
|
||||
Tangible equity ratio(2)
|
7.98
|
%
|
7.93
|
%
|
(1)
|
Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.
|
(2)
|
Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
|
Interest Rate Sensitivity Analysis
|
|
Change in interest rates
|
Percent change in
|
(in bps)
|
net interest income
|
+200
|
(0.15%)
|
+100
|
0.22%
|
-200
|
(0.22%)
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of
Shares Purchased
|
Average Price
Paid Per Share
|
Total Number of Shares
Purchased as Part of Publicly
Announced Plan
|
Maximum Number of Shares
That May Yet be Purchased
Under the Plans(1)
|
||||||||||||
1/1/24 - 1/31/24
|
-
|
$
|
-
|
-
|
2,000,000
|
|||||||||||
2/1/24 - 2/29/24
|
-
|
-
|
-
|
2,000,000
|
||||||||||||
3/1/24 - 3/31/24
|
1,900
|
33.03
|
1,900
|
1,998,100
|
||||||||||||
Total
|
1,900
|
$
|
33.03
|
1,900
|
1,998,100
|
(1) |
The Company purchased 1,900 shares of its common stock during the first quarter of 2024 at an average price of $33.03 per share under its previously announced share repurchase program. 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. As of March 31, 2024, there were 1,998,100 shares
available for repurchase under the plan announced on December 18, 2023, which is set to expire on December 31, 2025.
|
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
OTHER INFORMATION
|
ITEM 6. |
EXHIBITS
|
3.1
|
Restated Certificate of Incorporation of NBT Bancorp Inc. as amended through July 1, 2015 (filed as Exhibit 3.1
to Registrant’s Form 10-Q, filed on August 10, 2015 and incorporated herein by reference).
|
3.2
|
Amended and Restated Bylaws of NBT Bancorp Inc. effective May 22, 2018 (filed as Exhibit 3.1 to Registrant’s Form 8-K,
filed on May 23, 2018 and incorporated herein by reference).
|
3.3
|
Certificate of Designation of the Series A Junior Participating Preferred Stock (filed as Exhibit A to Exhibit 4.1 of
the Registrant’s Form 8-K, filed on November 18, 2004 and incorporated herein by reference).
|
Certification by the Chief Executive Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
|
|
Certification by the Chief Financial Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
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Certification by the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.INS
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Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
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101.SCH
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Inline XBRL Taxonomy Extension Schema Document.
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101.CAL
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Inline XBRL Taxonomy Extension Calculation Linkbase Document.
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101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document.
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101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document.
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101.PRE
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Inline XBRL Taxonomy Extension Presentation Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
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NBT BANCORP INC.
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By:
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/s/ Scott A. Kingsley
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Scott A. Kingsley
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Chief Financial Officer
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By:
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/s/ John H. Watt, Jr.
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John H. Watt, Jr.
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Chief Executive Officer
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By:
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/s/ Scott A. Kingsley
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Scott A. Kingsley
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||
Chief Financial Officer
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/s/ John H. Watt, Jr.
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John H. Watt, Jr.
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Chief Executive Officer
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||
May 9, 2024
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/s/ Scott A. Kingsley
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Scott A. Kingsley
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Chief Financial Officer
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May 9, 2024
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