NORWICH, N.Y., July 25, 2022 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2022.
Net income for the three months ended June 30, 2022 was $37.8 million, or $0.88 per diluted common share, compared to $40.3 million, or $0.92 per diluted share, in the second quarter of 2021 and $39.1 million, or $0.90 per diluted share in the first quarter of 2022. Net interest income recognized in the second quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $1.3 million ($0.02 per diluted share), compared to $4.7 million ($0.08 per diluted share) in the second quarter of 2021 and $2.0 million ($0.04 per diluted share) in the first quarter of 2022, reflective of higher levels of loan forgiveness in the prior year and prior quarter. Excluding the impact of PPP loan income recognition, net interest income in the second quarter of 2022 improved in comparison to the second quarter of 2021 and the linked first quarter of 2022 due to loan growth, incremental deployment of excess liquidity into investment securities and increases in the Federal Reserve’s targeted Federal Funds rate. The Company recorded a provision for loan losses of $4.4 million ($0.08 per diluted share) in the second quarter of 2022, compared to a net benefit of $5.2 million ($0.09 per diluted share) in the second quarter of 2021 and a provision of $0.6 million ($0.01 per diluted share) in the first quarter of 2022.
CEO Comments
“We are very pleased with our operating results for the second quarter and first half of 2022, which reflect continued organic loan growth and solid performance by our fee-based businesses. With the increases in the targeted Fed Funds rate in the quarter, we experienced the benefits of an asset-sensitive balance sheet,” said NBT President and CEO John H. Watt, Jr. “Our asset quality continues to be excellent, with historically low levels of net charge-offs and nonperforming assets. Given our strong loan growth and increased uncertainty surrounding the domestic macro-economic outlook, we did add to our loan loss reserves at quarter-end.”
“We are also pleased to have approved a $0.02, or 7.1% increase, to our quarterly dividend to stockholders,” added Watt. “The payment of a meaningful and growing dividend is an important component of our commitment to provide consistent and favorable long-term returns to our stockholders. The increase reflects the continued strength of both our current operating performance and capital position.”
Second Quarter Financial Highlights
| Net Income |
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| Net Interest Income / NIM |
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| Noninterest Income |
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| Pre-Provision Net Revenue (“PPNR”) |
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| Loans and Credit Quality |
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| Capital |
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Loans
- Period end total loans were $7.78 billion at June 30, 2022 and $7.50 billion at December 31, 2021.
- Excluding PPP loans, period end loans increased $363.2 million from December 31, 2021. Commercial and industrial loans increased $142.8 million to $1.30 billion; commercial real estate loans increased $15.3 million to $2.67 billion; and total consumer loans increased $205.1 million to $3.79 billion.
- Total PPP loans as of June 30, 2022 were $17.3 million (net of unamortized fees) with 95% of the original $836 million forgiven through the second quarter of 2022. The following PPP loan activity occurred during the second quarter of 2022:
- $36.7 million of loans forgiven.
- $1.3 million of interest and fees recognized into interest income, compared to $2.0 million for the first quarter of 2022 and $4.7 million for the second quarter of 2021.
- Commercial line of credit utilization rate was 23% at June 30, 2022 and March 31, 2022 and compared to 22% at June 30, 2021.
Deposits
- Total deposits at June 30, 2022 were $10.03 billion, compared to $10.23 billion at December 31, 2021, a 2% decline, which included a $100.0 million brokered deposit that matured in the quarter and seasonal declines in municipal deposits.
- Loan to deposit ratio was 77.6% at June 30, 2022, compared to 73.3% at December 31, 2021.
Net Interest Income and Net Interest Margin
- Net interest income for the second quarter of 2022 was $87.6 million, which was up $7.2 million, or 9.0%, from the first quarter of 2022 and up $8.4 million, or 10.6%, from the second quarter of 2021 primarily due to higher yields on earning assets. PPP income for the second quarter of 2022 was $1.3 million, which was $0.7 million lower compared to the prior quarter and down $3.4 million compared to the second quarter of 2021.
- The NIM on a FTE basis for the second quarter of 2022 was 3.21%, up 26 bps from the first quarter of 2022 and up 21 bps from the second quarter of 2021. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM increased 13 bps from the prior quarter primarily due to higher earning asset yields as the cost of interest-bearing liabilities remained flat. The net impact of PPP loans and excess liquidity negatively impacted the NIM by 9 bps in the second quarter of 2022 compared to a negative 22 bps impact in the first quarter of 2022, reflective of a lower level of excess liquidity.
- Earning asset yields for the three months ended June 30, 2022 were up 26 bps from the prior quarter and up 17 bps from the same quarter in the prior year. Earning assets declined $106.1 million, or 1.0%, from the prior quarter and grew $351.9 million, or 3.3%, from the same quarter in the prior year. The following are highlights comparing the second quarter of 2022 to the prior quarter:
- The average balances of investment securities increased $153.7 million and yields increased 6 bps.
- The average balances of short-term interest-bearing accounts with a yield of 0.82% decreased $436.8 million resulting from the incremental deployment of excess liquidity into loans and investment securities and modestly lower deposit balances due primarily to seasonal municipal outflows and the maturity of $100 million in brokered deposits.
- Loan yields increased 14 bps to 4.09% for the quarter. Excluding PPP loans, loan yields increased 16 bps from the prior quarter.
- Total cost of deposits was 0.07% for the second quarter of 2022, consistent with the prior quarter and down 5 bps from the same period in the prior year.
- The cost of interest-bearing liabilities for the three months ended June 30, 2022 was 0.23%, consistent with the prior quarter and down 6 bps from the second quarter of 2021 of 0.29%.
Credit Quality and Allowance for Credit Losses
- Net charge-offs to total average loans of 4 bps compared to 14 bps in the prior quarter and 7 bps in the second quarter of 2021. Recoveries in the second quarter of 2022 were $3.3 million compared to $1.9 million in the prior quarter and $2.7 million in the second quarter of 2021.
- Nonperforming assets to total assets was 0.22% compared to 0.23% at March 31, 2022 and 0.38% (0.39% excluding PPP loans) at June 30, 2021. Past due loans to total loans increased to 0.40% as of June 30, 2022 from 0.24% (0.25% excluding PPP loans) in the prior quarter almost entirely due to one commercial credit which returned to current status in early July.
- Provision expense for the three months ended June 30, 2022 was $4.4 million with net charge-offs of $0.8 million. Provision expense was $3.8 million higher than the first quarter of 2022 and $9.6 million higher than the second quarter of 2021. The increase in provision expense from the prior quarter was driven by modest deterioration of the macro-economic forecasts and providing for loan growth, partly offset by a lower level of net charge-offs. The increase in provision expense from the second quarter of 2021 was driven both by loan growth and an increase in the level of allowance for loan losses resulting from less favorable economic forecasts in the current year relative to improved economic forecasts in the prior year.
- The allowance for loan losses was $93.6 million, or 1.20% (1.21% excluding PPP loans and related allowance) of total loans at June 30, 2022, compared to 1.18% (1.18% excluding PPP loans and related allowance) of total loans at March 31, 2022 and 1.31% (1.38% excluding PPP loans and related allowance) of total loans at June 30, 2021. The increase in the level of allowance for loan losses from the prior quarter was primarily due to the deterioration in the forecast of economic conditions, which had an impact on the level of expected credit losses and the increase in loan balances.
- The reserve for unfunded loan commitments increased to $5.1 million at June 30, 2022 compared to the prior quarter at $4.8 million.
Noninterest Income
- Total noninterest income, excluding securities gains (losses), was $42.2 million for the three months ended June 30, 2022, down $0.6 million from the seasonally stronger first quarter and up $3.1 million from the prior year’s second quarter.
- Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2021. Early in June 2022, the Company made adjustments to customer non-sufficient funds processing practices and expects these adjustments to reduce future service charge fee income by approximately $0.5 million per quarter.
- Card services income was higher than the prior quarter and the second quarter of 2021 due to increased volume. As discussed in previous quarters, the Company will be subject to the provisions of the Durbin Amendment to the Dodd-Frank Act beginning in the third quarter of 2022, which it estimates will reduce quarterly debit card interchange income by approximately $3.7 million.
- Retirement plan administration fees were lower than the prior quarter driven by seasonal revenue fluctuations related to activity-based fees and higher than the second quarter of 2021 driven by higher activity-based fees and continued organic growth.
- Wealth management fees were lower than the prior quarter and lower than the second quarter of 2021 driven primarily by market performance.
- Other income decreased from the prior quarter and the second quarter of the prior year driven by lower commercial loan swap fees.
Noninterest Expense
- Total noninterest expense for the second quarter of 2022 was up 5.5% from the previous quarter and up 6.6% from the second quarter of 2021.
- Salaries and benefits increased from the prior quarter due to one additional day of payroll in the second quarter, annual merit pay increases and increased medical expenses. The increase from the second quarter of 2021 was driven by increased salaries and wages including merit pay increases, higher levels of incentive compensation and increased medical expenses.
- Technology and data services increased from the prior quarter due to continued investment in digital platform solutions including the completion of the Company’s human resources information system conversion.
- Loan collection and other real estate owned were higher than the prior quarter due to higher collection expenses and a gain on the sale of a property in the first quarter of 2022.
- Other expenses increased from the linked first quarter of 2022 due to a $0.5 million increase in the provision for the reserve for unfunded commitments, higher travel and training expenses and seasonal timing of certain expenditures.
Income Taxes
- The effective tax rate was 22.5% for the second quarter of 2022 compared to 22.2% for the first quarter of 2022 and 22.9% for the second quarter of 2021.
Capital
- Capital ratios remain strong with tangible common equity to tangible assets1 at 7.87%. Tangible book value per share2 was $20.99 at June 30, 2022, $21.25 at March 31, 2022 and $21.50 at June 30, 2021.
- Stockholders’ equity decreased $61.9 million from December 31, 2021 driven by the $101.4 million decrease in accumulated other comprehensive income due to the change in the market value of securities available for sale, dividends declared of $24.1 million and the repurchase of common stock of $14.7 million, partly offset by net income of $76.9 million.
- June 30, 2022, CET1 capital ratio of 12.14%, leverage ratio of 9.77% and total risk-based capital ratio of 15.50%.
Dividend and Stock Repurchase
- The Board of Directors approved a third-quarter cash dividend of $0.30 per share at a meeting held today. The dividend, which represents a $0.02, or 7.1% increase, will be paid on September 15, 2022 to stockholders of record as of September 1, 2022. The increased dividend represents a yield of 3.0% based upon the closing price of the Company’s stock on July 22, 2022. This is the Company’s tenth consecutive year of annual dividend increases.
- The Company purchased 182,900 shares of common stock early in the second quarter of 2022 at a weighted average price of $35.88 including commissions. The repurchase program under which these shares were purchased expires on December 31, 2023.
Other Events
- On June 30, 2022, NBT Insurance Agency, LLC, a full-service insurance agency, entered into an asset purchase agreement with Harrison A. Rogers Agency, Inc. (“H.A. Rogers”), a New York corporation, pursuant to which NBT Insurance will acquire substantially all of the assets of H.A. Rogers. H.A. Rogers is a small personal and commercial lines property and casualty insurance agency. This is a strategic regional insurance expansion into the northern New York market where NBT Bank has a long established presence. The acquisition is expected to close in the third quarter.
Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, July 26, 2022, to review second quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.72 billion at June 30, 2022. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.
Forward-Looking Statements
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; (17) changes in the Company’s organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.
Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, the impact of the COVID-19 pandemic on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2021 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.
The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.
Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
| Selected Financial Data | |||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Profitability: | |||||||||||||||
| Diluted earnings per share | $ | 0.88 | $ | 0.90 | $ | 0.86 | $ | 0.86 | $ | 0.92 | |||||
| Weighted average diluted common shares outstanding | 43,092,851 | 43,385,451 | 43,574,539 | 43,631,497 | 43,792,940 | ||||||||||
| Return on average assets3 | 1.28% | 1.32% | 1.23% | 1.26% | 1.39% | ||||||||||
| Return on average equity3 | 12.73% | 12.78% | 11.89% | 12.04% | 13.42% | ||||||||||
| Return on average tangible common equity1 3 | 17.00% | 16.87% | 15.70% | 15.97% | 17.93% | ||||||||||
| Net interest margin1 3 | 3.21% | 2.95% | 3.08% | 2.88% | 3.00% | ||||||||||
| 6 Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Profitability: | |||||||||||||||
| Diluted earnings per share | $ | 1.78 | $ | 1.83 | |||||||||||
| Weighted average diluted common shares outstanding | 43,238,248 | 43,839,060 | |||||||||||||
| Return on average assets3 | 1.30% | 1.42% | |||||||||||||
| Return on average equity3 | 12.76% | 13.49% | |||||||||||||
| Return on average tangible common equity1 3 | 16.93% | 18.08% | |||||||||||||
| Net interest margin1 3 | 3.08% | 3.08% | |||||||||||||
| 2022 | 2021 | ||||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Balance sheet data: | |||||||||||||||
| Short-term interest-bearing accounts | $ | 328,593 | $ | 913,315 | $ | 1,111,296 | $ | 1,131,074 | $ | 883,758 | |||||
| Securities available for sale | 1,619,356 | 1,662,697 | 1,687,361 | 1,576,030 | 1,534,733 | ||||||||||
| Securities held to maturity | 936,512 | 895,005 | 733,210 | 683,103 | 622,351 | ||||||||||
| Net loans | 7,684,081 | 7,559,826 | 7,406,459 | 7,473,442 | 7,419,127 | ||||||||||
| Total assets | 11,720,459 | 12,147,833 | 12,012,111 | 11,994,411 | 11,574,947 | ||||||||||
| Total deposits | 10,028,708 | 10,461,623 | 10,234,469 | 10,195,178 | 9,785,257 | ||||||||||
| Total borrowings | 265,796 | 278,788 | 311,476 | 313,311 | 304,110 | ||||||||||
| Total liabilities | 10,531,903 | 10,945,583 | 10,761,658 | 10,752,954 | 10,349,891 | ||||||||||
| Stockholders' equity | 1,188,556 | 1,202,250 | 1,250,453 | 1,241,457 | 1,225,056 | ||||||||||
| Capital: | |||||||||||||||
| Equity to assets | 10.14% | 9.90% | 10.41% | 10.35% | 10.58% | ||||||||||
| Tangible equity ratio1 | 7.87% | 7.70% | 8.20% | 8.13% | 8.28% | ||||||||||
| Book value per share | $ | 27.75 | $ | 27.96 | $ | 28.97 | $ | 28.65 | $ | 28.19 | |||||
| Tangible book value per share2 | $ | 20.99 | $ | 21.25 | $ | 22.26 | $ | 21.95 | $ | 21.50 | |||||
| Leverage ratio | 9.77% | 9.52% | 9.41% | 9.47% | 9.40% | ||||||||||
| Common equity tier 1 capital ratio | 12.14% | 12.23% | 12.25% | 12.20% | 12.12% | ||||||||||
| Tier 1 capital ratio | 13.27% | 13.39% | 13.43% | 13.39% | 13.34% | ||||||||||
| Total risk-based capital ratio | 15.50% | 15.64% | 15.73% | 15.74% | 15.78% | ||||||||||
| Common stock price (end of period) | $ | 37.59 | $ | 36.13 | $ | 38.52 | $ | 36.12 | $ | 35.97 | |||||
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
| Asset Quality and Consolidated Loan Balances | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Asset quality: | |||||||||||||||
| Nonaccrual loans | $ | 23,673 | $ | 25,812 | $ | 30,285 | $ | 35,737 | $ | 40,550 | |||||
| 90 days past due and still accruing | 2,096 | 1,944 | 2,458 | 2,940 | 2,575 | ||||||||||
| Total nonperforming loans | 25,769 | 27,756 | 32,743 | 38,677 | 43,125 | ||||||||||
| Other real estate owned | - | - | 167 | 859 | 798 | ||||||||||
| Total nonperforming assets | 25,769 | 27,756 | 32,910 | 39,536 | 43,923 | ||||||||||
| Allowance for loan losses | 93,600 | 90,000 | 92,000 | 93,000 | 98,500 | ||||||||||
| Asset quality ratios (total): | |||||||||||||||
| Allowance for loan losses to total loans | 1.20% | 1.18% | 1.23% | 1.23% | 1.31% | ||||||||||
| Total nonperforming loans to total loans | 0.33% | 0.36% | 0.44% | 0.51% | 0.57% | ||||||||||
| Total nonperforming assets to total assets | 0.22% | 0.23% | 0.27% | 0.33% | 0.38% | ||||||||||
| Allowance for loan losses to total nonperforming loans | 363.23% | 324.25% | 280.98% | 240.45% | 228.41% | ||||||||||
| Past due loans to total loans4 | 0.40% | 0.24% | 0.29% | 0.46% | 0.26% | ||||||||||
| Net charge-offs to average loans3 | 0.04% | 0.14% | 0.22% | 0.11% | 0.07% | ||||||||||
| Asset quality ratios (excluding paycheck protection program): | |||||||||||||||
| Allowance for loan losses to total loans | 1.21% | 1.18% | 1.24% | 1.28% | 1.38% | ||||||||||
| Total nonperforming loans to total loans | 0.33% | 0.37% | 0.44% | 0.53% | 0.60% | ||||||||||
| Total nonperforming assets to total assets | 0.22% | 0.23% | 0.28% | 0.34% | 0.39% | ||||||||||
| Allowance for loan losses to total nonperforming loans | 363.27% | 324.24% | 280.96% | 240.42% | 228.36% | ||||||||||
| Past due loans to total loans4 | 0.40% | 0.25% | 0.29% | 0.48% | 0.27% | ||||||||||
| Net charge-offs to average loans3 | 0.04% | 0.14% | 0.22% | 0.12% | 0.07% | ||||||||||
| 2022 | 2021 | ||||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Allowance for loan losses as a percentage of loans by segment: | |||||||||||||||
| Commercial & industrial | 0.75% | 0.66% | 0.78% | 0.83% | 1.11% | ||||||||||
| Commercial real estate | 0.89% | 0.79% | 0.78% | 0.93% | 1.26% | ||||||||||
| Paycheck protection program | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | ||||||||||
| Residential real estate | 0.79% | 0.88% | 0.92% | 0.93% | 0.98% | ||||||||||
| Auto | 0.79% | 0.76% | 0.79% | 0.78% | 0.76% | ||||||||||
| Other consumer | 3.98% | 4.14% | 4.49% | 4.57% | 4.27% | ||||||||||
| Total | 1.20% | 1.18% | 1.23% | 1.23% | 1.31% | ||||||||||
| Total excluding PPP loans | 1.21% | 1.18% | 1.24% | 1.28% | 1.38% | ||||||||||
| 2022 | 2021 | ||||||||||||||
| Loans by line of business: | 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||
| Commercial | $ | 1,298,072 | $ | 1,214,834 | $ | 1,155,240 | $ | 1,148,176 | $ | 1,159,591 | |||||
| Commercial real estate | 2,670,633 | 2,709,611 | 2,655,367 | 2,638,762 | 2,585,421 | ||||||||||
| Paycheck protection program | 17,286 | 50,977 | 101,222 | 276,195 | 359,738 | ||||||||||
| Residential real estate mortgages | 1,606,188 | 1,584,551 | 1,571,232 | 1,549,684 | 1,512,354 | ||||||||||
| Indirect auto | 936,516 | 890,643 | 859,454 | 873,860 | 899,324 | ||||||||||
| Residential solar | 599,565 | 514,526 | 440,016 | 365,299 | 325,717 | ||||||||||
| Home equity | 313,395 | 319,180 | 330,357 | 339,316 | 351,469 | ||||||||||
| Other consumer | 336,026 | 365,504 | 385,571 | 375,150 | 324,013 | ||||||||||
| Total loans | $ | 7,777,681 | $ | 7,649,826 | $ | 7,498,459 | $ | 7,566,442 | $ | 7,517,627 | |||||
| PPP income recognized | $ | 1,301 | $ | 1,976 | $ | 7,545 | $ | 2,861 | $ | 4,732 | |||||
| PPP unamortized fees | $ | 414 | $ | 1,629 | $ | 3,420 | $ | 10,536 | $ | 12,576 | |||||
| NBT Bancorp Inc. and Subsidiaries | ||||
| Consolidated Balance Sheets | ||||
| (unaudited, dollars in thousands) | ||||
| June 30, | December 31, | |||
| Assets | 2022 | 2021 | ||
| Cash and due from banks | $ | 195,023 | $ | 157,775 |
| Short-term interest-bearing accounts | 328,593 | 1,111,296 | ||
| Equity securities, at fair value | 29,974 | 33,550 | ||
| Securities available for sale, at fair value | 1,619,356 | 1,687,361 | ||
| Securities held to maturity (fair value $864,234 and $735,260, respectively) | 936,512 | 733,210 | ||
| Federal Reserve and Federal Home Loan Bank stock | 24,893 | 25,098 | ||
| Loans held for sale | 128 | 830 | ||
| Loans | 7,777,681 | 7,498,459 | ||
| Less allowance for loan losses | 93,600 | 92,000 | ||
| Net loans | $ | 7,684,081 | $ | 7,406,459 |
| Premises and equipment, net | 69,426 | 72,093 | ||
| Goodwill | 281,112 | 280,541 | ||
| Intangible assets, net | 8,147 | 8,927 | ||
| Bank owned life insurance | 230,390 | 228,238 | ||
| Other assets | 312,824 | 266,733 | ||
| Total assets | $ | 11,720,459 | $ | 12,012,111 |
| Liabilities and stockholders' equity | ||||
| Demand (noninterest bearing) | $ | 3,717,899 | $ | 3,689,556 |
| Savings, NOW and money market | 5,845,045 | 6,043,441 | ||
| Time | 465,764 | 501,472 | ||
| Total deposits | $ | 10,028,708 | $ | 10,234,469 |
| Short-term borrowings | 62,545 | 97,795 | ||
| Long-term debt | 3,347 | 13,995 | ||
| Subordinated debt, net | 98,708 | 98,490 | ||
| Junior subordinated debt | 101,196 | 101,196 | ||
| Other liabilities | 237,399 | 215,713 | ||
| Total liabilities | $ | 10,531,903 | $ | 10,761,658 |
| Total stockholders' equity | $ | 1,188,556 | $ | 1,250,453 |
| Total liabilities and stockholders' equity | $ | 11,720,459 | $ | 12,012,111 |
| NBT Bancorp Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Income | ||||||||||||
| (unaudited, dollars in thousands except per share data) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Interest, fee and dividend income | ||||||||||||
| Interest and fees on loans | $ | 78,539 | $ | 74,795 | $ | 151,882 | $ | 149,888 | ||||
| Securities available for sale | 7,317 | 5,762 | 14,157 | 11,306 | ||||||||
| Securities held to maturity | 4,185 | 3,096 | 7,678 | 6,478 | ||||||||
| Other | 1,442 | 391 | 1,967 | 682 | ||||||||
| Total interest, fee and dividend income | $ | 91,483 | $ | 84,044 | $ | 175,684 | $ | 168,354 | ||||
| Interest expense | ||||||||||||
| Deposits | $ | 1,756 | $ | 2,862 | $ | 3,598 | $ | 6,034 | ||||
| Short-term borrowings | 13 | 32 | 29 | 102 | ||||||||
| Long-term debt | 33 | 88 | 120 | 212 | ||||||||
| Subordinated debt | 1,359 | 1,359 | 2,718 | 2,718 | ||||||||
| Junior subordinated debt | 737 | 525 | 1,286 | 1,055 | ||||||||
| Total interest expense | $ | 3,898 | $ | 4,866 | $ | 7,751 | $ | 10,121 | ||||
| Net interest income | $ | 87,585 | $ | 79,178 | $ | 167,933 | $ | 158,233 | ||||
| Provision for loan losses | 4,390 | (5,216 | ) | 4,986 | (8,012 | ) | ||||||
| Net interest income after provision for loan losses | $ | 83,195 | $ | 84,394 | $ | 162,947 | $ | 166,245 | ||||
| Noninterest income | ||||||||||||
| Service charges on deposit accounts | $ | 3,763 | $ | 3,028 | $ | 7,451 | $ | 6,055 | ||||
| Card services income | 9,751 | 9,184 | 18,446 | 16,734 | ||||||||
| Retirement plan administration fees | 12,676 | 9,779 | 25,955 | 19,877 | ||||||||
| Wealth management | 8,252 | 8,406 | 16,892 | 16,316 | ||||||||
| Insurance services | 3,578 | 3,508 | 7,366 | 6,969 | ||||||||
| Bank owned life insurance income | 1,411 | 1,659 | 3,065 | 3,040 | ||||||||
| Net securities (losses) gains | (587 | ) | 201 | (766 | ) | 668 | ||||||
| Other | 2,812 | 3,551 | 5,906 | 6,695 | ||||||||
| Total noninterest income | $ | 41,656 | $ | 39,316 | $ | 84,315 | $ | 76,354 | ||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | $ | 46,716 | $ | 42,671 | $ | 92,224 | $ | 84,272 | ||||
| Technology and data services | 8,945 | 8,841 | 17,492 | 17,733 | ||||||||
| Occupancy | 6,487 | 6,370 | 13,280 | 13,259 | ||||||||
| Professional fees and outside services | 3,906 | 4,030 | 8,182 | 7,619 | ||||||||
| Office supplies and postage | 1,548 | 1,615 | 2,972 | 3,114 | ||||||||
| FDIC expense | 810 | 663 | 1,612 | 1,471 | ||||||||
| Advertising | 730 | 468 | 1,384 | 919 | ||||||||
| Amortization of intangible assets | 545 | 682 | 1,181 | 1,494 | ||||||||
| Loan collection and other real estate owned, net | 757 | 663 | 1,141 | 1,253 | ||||||||
| Other | 5,675 | 5,416 | 8,794 | 8,173 | ||||||||
| Total noninterest expense | $ | 76,119 | $ | 71,419 | $ | 148,262 | $ | 139,307 | ||||
| Income before income tax expense | $ | 48,732 | $ | 52,291 | $ | 99,000 | $ | 103,292 | ||||
| Income tax expense | 10,957 | 11,995 | 22,099 | 23,150 | ||||||||
| Net income | $ | 37,775 | $ | 40,296 | $ | 76,901 | $ | 80,142 | ||||
| Earnings Per Share | ||||||||||||
| Basic | $ | 0.88 | $ | 0.93 | $ | 1.79 | $ | 1.84 | ||||
| Diluted | $ | 0.88 | $ | 0.92 | $ | 1.78 | $ | 1.83 | ||||
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
| Quarterly Consolidated Statements of Income | |||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Interest, fee and dividend income | |||||||||||||||
| Interest and fees on loans | $ | 78,539 | $ | 73,343 | $ | 79,470 | $ | 72,817 | $ | 74,795 | |||||
| Securities available for sale | 7,317 | 6,840 | 6,101 | 5,898 | 5,762 | ||||||||||
| Securities held to maturity | 4,185 | 3,493 | 3,097 | 2,976 | 3,096 | ||||||||||
| Other | 1,442 | 525 | 639 | 524 | 391 | ||||||||||
| Total interest, fee and dividend income | $ | 91,483 | $ | 84,201 | $ | 89,307 | $ | 82,215 | $ | 84,044 | |||||
| Interest expense | |||||||||||||||
| Deposits | $ | 1,756 | $ | 1,842 | $ | 2,132 | $ | 2,548 | $ | 2,862 | |||||
| Short-term borrowings | 13 | 16 | 28 | 28 | 32 | ||||||||||
| Long-term debt | 33 | 87 | 88 | 89 | 88 | ||||||||||
| Subordinated debt | 1,359 | 1,359 | 1,360 | 1,359 | 1,359 | ||||||||||
| Junior subordinated debt | 737 | 549 | 518 | 517 | 525 | ||||||||||
| Total interest expense | $ | 3,898 | $ | 3,853 | $ | 4,126 | $ | 4,541 | $ | 4,866 | |||||
| Net interest income | $ | 87,585 | $ | 80,348 | $ | 85,181 | $ | 77,674 | $ | 79,178 | |||||
| Provision for loan losses | 4,390 | 596 | 3,097 | (3,342 | ) | (5,216 | ) | ||||||||
| Net interest income after provision for loan losses | $ | 83,195 | $ | 79,752 | $ | 82,084 | $ | 81,016 | $ | 84,394 | |||||
| Noninterest income | |||||||||||||||
| Service charges on deposit accounts | $ | 3,763 | $ | 3,688 | $ | 3,804 | $ | 3,489 | $ | 3,028 | |||||
| Card services income | 9,751 | 8,695 | 8,847 | 9,101 | 9,184 | ||||||||||
| Retirement plan administration fees | 12,676 | 13,279 | 11,816 | 10,495 | 9,779 | ||||||||||
| Wealth management | 8,252 | 8,640 | 8,619 | 8,783 | 8,406 | ||||||||||
| Insurance services | 3,578 | 3,788 | 3,394 | 3,720 | 3,508 | ||||||||||
| Bank owned life insurance income | 1,411 | 1,654 | 1,629 | 1,548 | 1,659 | ||||||||||
| Net securities (losses) gains | (587 | ) | (179 | ) | (2 | ) | (100 | ) | 201 | ||||||
| Other | 2,812 | 3,094 | 3,004 | 3,293 | 3,551 | ||||||||||
| Total noninterest income | $ | 41,656 | $ | 42,659 | $ | 41,111 | $ | 40,329 | $ | 39,316 | |||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | $ | 46,716 | $ | 45,508 | $ | 44,118 | $ | 44,190 | $ | 42,671 | |||||
| Technology and data services | 8,945 | 8,547 | 8,563 | 8,421 | 8,841 | ||||||||||
| Occupancy | 6,487 | 6,793 | 6,635 | 6,154 | 6,370 | ||||||||||
| Professional fees and outside services | 3,906 | 4,276 | 4,903 | 3,784 | 4,030 | ||||||||||
| Office supplies and postage | 1,548 | 1,424 | 1,528 | 1,364 | 1,615 | ||||||||||
| FDIC expense | 810 | 802 | 798 | 772 | 663 | ||||||||||
| Advertising | 730 | 654 | 1,019 | 583 | 468 | ||||||||||
| Amortization of intangible assets | 545 | 636 | 651 | 663 | 682 | ||||||||||
| Loan collection and other real estate owned, net | 757 | 384 | 956 | 706 | 663 | ||||||||||
| Other | 5,675 | 3,119 | 5,934 | 6,232 | 5,416 | ||||||||||
| Total noninterest expense | $ | 76,119 | $ | 72,143 | $ | 75,105 | $ | 72,869 | $ | 71,419 | |||||
| Income before income tax expense | $ | 48,732 | $ | 50,268 | $ | 48,090 | $ | 48,476 | $ | 52,291 | |||||
| Income tax expense | 10,957 | 11,142 | 10,780 | 11,043 | 11,995 | ||||||||||
| Net income | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | $ | 40,296 | |||||
| Earnings Per Share | |||||||||||||||
| Basic | $ | 0.88 | $ | 0.91 | $ | 0.86 | $ | 0.86 | $ | 0.93 | |||||
| Diluted | $ | 0.88 | $ | 0.90 | $ | 0.86 | $ | 0.86 | $ | 0.92 | |||||
| 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 | ||||||
| Q2 - 2022 | Q1 - 2022 | Q4 - 2021 | Q3 - 2021 | Q2 - 2021 | |||||||||||
| Assets | |||||||||||||||
| Short-term interest-bearing accounts | $ | 553,548 | 0.82% | $ | 990,319 | 0.17% | $ | 1,145,794 | 0.16% | $ | 1,014,120 | 0.16% | $ | 974,034 | 0.09% |
| Securities taxable1 | 2,439,960 | 1.74% | 2,284,578 | 1.67% | 2,081,796 | 1.57% | 1,923,700 | 1.63% | 1,864,542 | 1.69% | |||||
| Securities tax-exempt 1 5 | 256,799 | 1.83% | 258,513 | 1.84% | 257,320 | 1.85% | 246,685 | 1.97% | 193,108 | 2.59% | |||||
| FRB and FHLB stock | 24,983 | 5.03% | 25,026 | 1.98% | 25,149 | 2.74% | 25,154 | 1.91% | 25,115 | 2.67% | |||||
| Loans1 6 | 7,707,730 | 4.09% | 7,530,674 | 3.95% | 7,507,165 | 4.20% | 7,517,839 | 3.84% | 7,574,272 | 3.96% | |||||
| Total interest-earning assets | $ | 10,983,020 | 3.35% | $ | 11,089,110 | 3.09% | $ | 11,017,224 | 3.23% | $ | 10,727,498 | 3.05% | $ | 10,631,071 | 3.18% |
| Other assets | 883,498 | 947,578 | 982,136 | 1,019,797 | 971,681 | ||||||||||
| Total assets | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | $ | 11,602,752 | |||||
| Liabilities and stockholders' equity | |||||||||||||||
| Money market deposit accounts | $ | 2,577,367 | 0.14% | $ | 2,720,338 | 0.15% | $ | 2,678,477 | 0.16% | $ | 2,580,570 | 0.19% | $ | 2,605,767 | 0.21% |
| NOW deposit accounts | 1,580,132 | 0.07% | 1,583,091 | 0.05% | 1,551,846 | 0.05% | 1,442,678 | 0.05% | 1,454,751 | 0.05% | |||||
| Savings deposits | 1,845,128 | 0.03% | 1,794,549 | 0.03% | 1,725,004 | 0.05% | 1,691,539 | 0.05% | 1,660,722 | 0.05% | |||||
| Time deposits | 478,531 | 0.37% | 494,632 | 0.40% | 537,875 | 0.46% | 565,216 | 0.62% | 591,147 | 0.75% | |||||
| Total interest-bearing deposits | $ | 6,481,158 | 0.11% | $ | 6,592,610 | 0.11% | $ | 6,493,202 | 0.13% | $ | 6,280,003 | 0.16% | $ | 6,312,387 | 0.18% |
| Federal funds purchased | - | - | - | - | 65 | - | - | - | - | - | |||||
| Repurchase agreements | 60,061 | 0.09% | 72,768 | 0.09% | 97,389 | 0.11% | 99,703 | 0.11% | 95,226 | 0.13% | |||||
| Short-term borrowings | - | - | - | - | 1 | - | - | - | - | - | |||||
| Long-term debt | 5,336 | 2.48% | 13,979 | 2.52% | 14,004 | 2.49% | 14,029 | 2.52% | 14,053 | 2.51% | |||||
| Subordinated debt, net | 98,642 | 5.53% | 98,531 | 5.59% | 98,422 | 5.48% | 98,311 | 5.48% | 98,204 | 5.55% | |||||
| Junior subordinated debt | 101,196 | 2.92% | 101,196 | 2.20% | 101,196 | 2.03% | 101,196 | 2.03% | 101,196 | 2.08% | |||||
| Total interest-bearing liabilities | $ | 6,746,393 | 0.23% | $ | 6,879,084 | 0.23% | $ | 6,804,279 | 0.24% | $ | 6,593,242 | 0.27% | $ | 6,621,066 | 0.29% |
| Demand deposits | 3,711,049 | 3,710,124 | 3,719,070 | 3,676,883 | 3,542,176 | ||||||||||
| Other liabilities | 218,491 | 206,292 | 231,260 | 244,125 | 235,536 | ||||||||||
| Stockholders' equity | 1,190,585 | 1,241,188 | 1,244,751 | 1,233,045 | 1,203,974 | ||||||||||
| Total liabilities and stockholders' equity | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | $ | 11,602,752 | |||||
| Interest rate spread | 3.12% | 2.86% | 2.99% | 2.78% | 2.89% | ||||||||||
| Net interest margin (FTE)1 | 3.21% | 2.95% | 3.08% | 2.88% | 3.00% | ||||||||||
| 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 | ||||||||
| Six Months Ended June 30, | 2022 | 2021 | |||||||||||
| Assets | |||||||||||||
| Short-term interest-bearing accounts | $ | 770,727 | $ | 1,533 | 0.40% | $ | 781,764 | $ | 360 | 0.09% | |||
| Securities taxable1 | 2,362,699 | 19,981 | 1.71% | 1,817,008 | 15,806 | 1.75% | |||||||
| Securities tax-exempt 1 5 | 257,651 | 2,347 | 1.84% | 188,998 | 2,504 | 2.67% | |||||||
| FRB and FHLB stock | 25,004 | 434 | 3.50% | 25,359 | 322 | 2.56% | |||||||
| Loans1 6 | 7,619,691 | 151,964 | 4.02% | 7,574,304 | 149,963 | 3.99% | |||||||
| Total interest-earning assets | $ | 11,035,772 | $ | 176,259 | 3.22% | $ | 10,387,433 | $ | 168,955 | 3.28% | |||
| Other assets | 915,361 | 966,367 | |||||||||||
| Total assets | $ | 11,951,133 | $ | 11,353,800 | |||||||||
| Liabilities and stockholders' equity | |||||||||||||
| Money market deposit accounts | $ | 2,648,458 | $ | 1,924 | 0.15% | $ | 2,545,280 | $ | 2,755 | 0.22% | |||
| NOW deposit accounts | 1,581,603 | 460 | 0.06% | 1,407,118 | 348 | 0.05% | |||||||
| Savings deposits | 1,819,978 | 293 | 0.03% | 1,604,664 | 406 | 0.05% | |||||||
| Time deposits | 486,537 | 921 | 0.38% | 603,178 | 2,525 | 0.84% | |||||||
| Total interest-bearing deposits | $ | 6,536,576 | $ | 3,598 | 0.11% | $ | 6,160,240 | $ | 6,034 | 0.20% | |||
| Federal funds purchased | - | - | - | - | - | - | |||||||
| Repurchase agreements | 66,379 | 29 | 0.09% | 102,525 | 75 | 0.15% | |||||||
| Short-term borrowings | - | - | - | 2,624 | 27 | 2.07% | |||||||
| Long-term debt | 9,634 | 120 | 2.51% | 16,967 | 212 | 2.52% | |||||||
| Subordinated debt, net | 98,587 | 2,718 | 5.56% | 98,149 | 2,718 | 5.58% | |||||||
| Junior subordinated debt | 101,196 | 1,286 | 2.56% | 101,196 | 1,055 | 2.10% | |||||||
| Total interest-bearing liabilities | $ | 6,812,372 | $ | 7,751 | 0.23% | $ | 6,481,701 | $ | 10,121 | 0.31% | |||
| Demand deposits | 3,710,589 | 3,431,216 | |||||||||||
| Other liabilities | 212,425 | 243,221 | |||||||||||
| Stockholders' equity | 1,215,747 | 1,197,662 | |||||||||||
| Total liabilities and stockholders' equity | $ | 11,951,133 | $ | 11,353,800 | |||||||||
| Net interest income (FTE)1 | $ | 168,508 | $ | 158,834 | |||||||||
| Interest rate spread | 2.99% | 2.97% | |||||||||||
| Net interest margin (FTE)1 | 3.08% | 3.08% | |||||||||||
| Taxable equivalent adjustment | $ | 575 | $ | 601 | |||||||||
| Net interest income | $ | 167,933 | $ | 158,233 | |||||||||
| 1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
| Non-GAAP measures | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| Pre-provision net revenue ("PPNR") | 2022 | 2021 | |||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Net income | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | $ | 40,296 | |||||
| Income tax expense | 10,957 | 11,142 | 10,780 | 11,043 | 11,995 | ||||||||||
| Provision for loan losses | 4,390 | 596 | 3,097 | (3,342 | ) | (5,216 | ) | ||||||||
| FTE adjustment | 290 | 285 | 292 | 298 | 299 | ||||||||||
| Net securities losses (gains) | 587 | 179 | 2 | 100 | (201 | ) | |||||||||
| Provision for unfunded loan commitments reserve | 240 | (260 | ) | (250 | ) | (470 | ) | (80 | ) | ||||||
| Nonrecurring expense | - | (172 | ) | 250 | 2,288 | 1,880 | |||||||||
| PPNR | $ | 54,239 | $ | 50,896 | $ | 51,481 | $ | 47,350 | $ | 48,973 | |||||
| Average assets | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | $ | 11,602,757 | |||||
| Return on average assets3 | 1.28% | 1.32% | 1.23% | 1.26% | 1.39% | ||||||||||
| PPNR return on average assets3 | 1.83% | 1.71% | 1.70% | 1.60% | 1.69% | ||||||||||
| 6 Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net income | $ | 76,901 | $ | 80,142 | |||||||||||
| Income tax expense | 22,099 | 23,150 | |||||||||||||
| Provision for loan losses | 4,986 | (8,012 | ) | ||||||||||||
| FTE adjustment | 575 | 601 | |||||||||||||
| Net securities losses (gains) | 766 | (668 | ) | ||||||||||||
| Provision for unfunded loan commitments reserve | (20 | ) | (580 | ) | |||||||||||
| Nonrecurring expense | (172 | ) | 1,880 | ||||||||||||
| PPNR | $ | 105,135 | $ | 96,513 | |||||||||||
| Average Assets | $ | 11,951,133 | $ | 11,353,800 | |||||||||||
| Return on average assets3 | 1.30% | 1.42% | |||||||||||||
| PPNR return on average assets3 | 1.77% | 1.71% | |||||||||||||
| PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense. | |||||||||||||||
| FTE adjustment | 2022 | 2021 | |||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Net interest income | $ | 87,585 | $ | 80,348 | $ | 85,181 | $ | 77,674 | $ | 79,178 | |||||
| Add: FTE adjustment | 290 | 285 | 292 | 298 | 299 | ||||||||||
| Net interest income (FTE) | $ | 87,875 | $ | 80,633 | $ | 85,473 | $ | 77,972 | $ | 79,477 | |||||
| Average earning assets | $ | 10,983,020 | $ | 11,089,110 | $ | 11,017,224 | $ | 10,727,498 | $ | 10,631,071 | |||||
| Net interest margin (FTE)3 | 3.21% | 2.95% | 3.08% | 2.88% | 3.00% | ||||||||||
| 6 Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net interest income | $ | 167,933 | $ | 158,233 | |||||||||||
| Add: FTE adjustment | 575 | 601 | |||||||||||||
| Net interest income (FTE) | $ | 168,508 | $ | 158,834 | |||||||||||
| Average earning assets | $ | 11,035,772 | $ | 10,387,433 | |||||||||||
| Net interest margin (FTE)3 | 3.08% | 3.08% | |||||||||||||
| Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. | |||||||||||||||
| 1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
| Non-GAAP measures | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| Tangible equity to tangible assets | 2022 | 2021 | |||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Total equity | $ | 1,188,556 | $ | 1,202,250 | $ | 1,250,453 | $ | 1,241,457 | $ | 1,225,056 | |||||
| Intangible assets | 289,259 | 288,832 | 289,468 | 290,119 | 290,782 | ||||||||||
| Total assets | $ | 11,720,459 | $ | 12,147,833 | $ | 12,012,111 | $ | 11,994,411 | $ | 11,574,947 | |||||
| Tangible equity to tangible assets | 7.87% | 7.70% | 8.20% | 8.13% | 8.28% | ||||||||||
| Return on average tangible common equity | 2022 | 2021 | |||||||||||||
| 2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
| Net income | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | $ | 40,296 | |||||
| Amortization of intangible assets (net of tax) | 409 | 477 | 488 | 497 | 512 | ||||||||||
| Net income, excluding intangibles amortization | $ | 38,184 | $ | 39,603 | $ | 37,798 | $ | 37,930 | $ | 40,808 | |||||
| Average stockholders' equity | $ | 1,190,585 | $ | 1,241,188 | $ | 1,244,751 | $ | 1,233,045 | $ | 1,203,974 | |||||
| Less: average goodwill and other intangibles | 289,584 | 289,218 | 289,834 | 290,492 | 291,133 | ||||||||||
| Average tangible common equity | $ | 901,001 | $ | 951,970 | $ | 954,917 | $ | 942,553 | $ | 912,841 | |||||
| Return on average tangible common equity3 | 17.00% | 16.87% | 15.70% | 15.97% | 17.93% | ||||||||||
| 6 Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net income | $ | 76,901 | $ | 80,142 | |||||||||||
| Amortization of intangible assets (net of tax) | 886 | 1,121 | |||||||||||||
| Net income, excluding intangibles amortization | $ | 77,787 | $ | 81,263 | |||||||||||
| Average stockholders' equity | $ | 1,215,747 | $ | 1,197,662 | |||||||||||
| Less: average goodwill and other intangibles | 289,402 | 291,525 | |||||||||||||
| Average tangible common equity | $ | 926,345 | $ | 906,137 | |||||||||||
| Return on average tangible common equity3 | 16.93% | 18.08% | |||||||||||||
| 2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | |||||||||||||||
| 3Annualized. | |||||||||||||||
| 4Total past due loans, defined as loans 30 days or more past due and in an accrual status. | |||||||||||||||
| 5Securities are shown at average amortized cost. | |||||||||||||||
| 6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. | |||||||||||||||
