NORWICH, N.Y., Oct. 28, 2024 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. ("NBT" or the "Company") (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and nine months ended September 30, 2024.
Net income for the three months ended September 30, 2024 was $38.1 million, or $0.80 per diluted common share, compared to $24.6 million, or $0.54 per diluted common share, for the three months ended September 30, 2023, and $32.7 million, or $0.69 per diluted common share, for the second quarter of 2024. Operating diluted earnings per share(1), a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses and unfunded loan commitments and securities gains (losses), net of tax, was $0.80 for the third quarter of 2024, compared to $0.84 for the third quarter of 2023 and $0.69 for the second quarter of 2024.
The Company completed the acquisition of Salisbury Bancorp, Inc. ("Salisbury") on August 11, 2023, adding 13 banking offices, $1.18 billion in loans and $1.31 billion in deposits. The comparisons to the third quarter of 2023 are significantly impacted by the Salisbury acquisition.
CEO Comments
"Sequential growth in net interest income and margin for the second consecutive quarter as well as strong performance from our diverse mix of fee businesses drove NBT's positive operating performance in the third quarter of 2024." said NBT President and Chief Executive Officer Scott A. Kingsley. "In September, we entered into a definitive agreement to merge with Evans Bancorp, Inc. The greater Buffalo and Rochester communities served by Evans are a natural extension of NBT's footprint in Upstate New York, and our shared community banking values support our strategic rationale. We expect the merger to close in the second quarter of 2025, pending required approvals by regulatory agencies and Evans' shareholders."
Third Quarter 2024 Financial Highlights
| Net Income |
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| Net Interest Income / NIM |
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| Noninterest Income |
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| Loans and Credit Quality |
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| Deposits |
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| Capital |
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Loans
- Period end total loans were $9.91 billion at September 30, 2024, $9.85 billion at June 30, 2024 and $9.65 billion at December 31, 2023.
- Period end total loans increased $256.3 million from December 31, 2023. Total commercial loans increased $270.3 million to $5.25 billion; and total consumer loans decreased $13.9 million to $4.66 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $384.4 million, or 6.0% annualized.
- Commercial line of credit utilization rate was 22% at September 30, 2024, compared to 23% at June 30, 2024 and 22% at September 30, 2023.
Deposits
- Total deposits at September 30, 2024 were $11.59 billion, compared to $11.27 billion at June 30, 2024 and compared to $10.97 billion at December 31, 2023. The $619.3 million increase in deposits from December 31, 2023 was primarily due to higher consumer deposit balances and accounts and the inflow of seasonal municipal deposits. The Company continued to experience some incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
- The loan to deposit ratio was 85.5% at September 30, 2024, compared to 88.0% at December 31, 2023.
Net Interest Income and Net Interest Margin
- Net interest income for the third quarter of 2024 was $101.7 million, an increase of $4.5 million, or 4.6%, from the second quarter of 2024 and up $6.8 million, or 7.1%, from the third quarter of 2023. The increase in net interest income from the second quarter of 2024 resulted primarily from the increase in average loans and the interest earned on those balances combined with a more favorable funding mix, partially offset by the increase in the cost of deposits.
- The NIM on an FTE basis for the third quarter of 2024 was 3.27%, an increase of 9 bps from the second quarter of 2024. This increase was driven by higher average earning asset yields, an improved funding mix with lower average balances of short-term borrowings and an increase in the average balance of noninterest-bearing demand deposit accounts, partially offset by an increase in the cost of interest-bearing deposits. The NIM on an FTE basis increased 6 bps from the third quarter of 2023 due to higher earning asset yields, the impact of acquisition-related net accretion and lower average balances of short-term borrowings, partially offset by the increase in the cost of interest-bearing deposits.
- Earning asset yields for the three months ended September 30, 2024 increased 9 bps from the prior quarter to 5.01% and increased 38 bps from the same quarter in the prior year. Loan yields for the three months ended September 30, 2024 increased 11 bps from the prior quarter to 5.74% and increased 38 bps from the same quarter in the prior year. Average earning assets increased $79.2 million, or 0.6%, from the second quarter of 2024 due to organic loan growth. Average earning assets grew $644.2 million, or 5.5%, from the third quarter of 2023 due to organic loan growth and the Salisbury acquisition, completed in August 2023.
- Total cost of deposits, including noninterest bearing deposits, was 1.72% for the third quarter of 2024, an increase of 4 bps from the prior quarter and an increase of 54 bps from the same period in the prior year. For the month of September 2024, the total cost of deposits was 1.72%.
- Total cost of funds for the three months ended September 30, 2024 was 1.85%, consistent with the prior quarter and an increase of 35 bps from the third quarter of 2023. For the month of September 2024, the total cost of funds was 1.83%.
Asset Quality and Allowance for Loan Losses
- Net charge-offs to total average loans for the third quarter of 2024 was 16 bps compared to 15 bps in the prior quarter. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter.
- Nonperforming assets to total assets was 0.27% which was consistent with the previous three quarter ends at 0.28%.
- Provision expense for the three months ended September 30, 2024 was $2.9 million, compared to $8.9 million for the second quarter of 2024. The decrease in provision expense from the prior quarter was primarily due to lower level of loan growth in the third quarter including the run-off of the other consumer and residential solar portfolios, the establishment of a specific reserve in the prior quarter and the stabilization of expected prepayment assumptions impacting the expected life of the loan portfolios. Included in the provision expense in the third quarter of 2023 was $8.8 million of acquisition-related provision for loan losses.
- The allowance for loan losses was $119.5 million, or 1.21% of total loans, at September 30, 2024, compared to $120.5 million, or 1.22% of total loans, at June 30, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
- The reserve for unfunded loan commitments was $4.6 million at September 30, 2024, compared to $4.3 million at June 30, 2024 and $5.1 million at December 31, 2023. The provision for unfunded loan commitments in the third quarter of 2023 included $0.8 million of acquisition-related provision for unfunded loan commitments.
Noninterest Income
- Total noninterest income, excluding securities gains (losses), was $45.3 million for the three months ended September 30, 2024, up $2.0 million, or 4.6%, from the second quarter of 2024, and up $4.9 million, or 12.1%, from the third quarter of 2023.
- Retirement plan administration fees were consistent with the prior quarter and increased $1.8 million from the third quarter of 2023. The increase from the third quarter of 2023 was driven by organic growth and higher market levels.
- Wealth management fees increased $0.8 million from the prior quarter and were up $1.6 million from the third quarter of 2023. The increase from the prior quarter was driven by organic growth and seasonal activity-based fees. The increase from the third quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
- Insurance revenues increased $1.1 million from the prior quarter driven by seasonal renewals and increased $0.6 million from the prior year due to organic growth.
Noninterest Expense
- Total noninterest expense was $95.7 million for the third quarter of 2024, compared to $89.6 million for the second quarter of 2024 and $90.8 million for the third quarter of 2023. Excluding $0.5 million of acquisition expenses in the third quarter of 2024 and $7.9 million of acquisition expenses in the third quarter of 2023, total noninterest expense increased 6.3% compared to the previous quarter and increased 14.9% from the third quarter of 2023.
- Salaries and benefits increased 7.7% from the prior quarter driven by one additional payroll day and an increase in other benefits including higher levels of incentive compensation. The 21.1% increase from the third quarter of 2023 was driven by the impact of the Salisbury acquisition, merit pay increases, higher levels of incentive compensation, higher medical and other benefit costs.
- Technology and data services increased from the prior quarter primarily due to timing of planned initiatives and continued investment in digital platform solutions.
- Occupancy costs were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses related to the Salisbury acquisition.
- Professional fees and outside services were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses from the Salisbury acquisition and the timing of external services for several tactical and strategic initiatives.
- Amortization of intangible assets were consistent with the second quarter of 2024 and increased $0.5 million from the third quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.
Income Taxes
- The effective tax rate was 21.9% for the third quarter of 2024 consistent with 22.0% in the second quarter of 2024 and down from 22.4% for the third quarter of 2023.
Capital
- Tangible common equity to tangible assets(1) was 8.36% at September 30, 2024. Tangible book value per share(2) was $23.83 at September 30, 2024, $22.54 at June 30, 2024 and $20.39 at September 30, 2023.
- Stockholders' equity increased $96.3 million from December 31, 2023 driven by net income generation of $104.6 million and a $35.2 million decrease in accumulated other comprehensive loss driven by the change in the fair value of securities available for sale, partially offset by dividends declared of $46.2 million.
- September 30, 2024, CET1 capital ratio of 11.86%, leverage ratio of 10.29% and total risk-based capital ratio of 15.02%.
Dividend
- The Board of Directors approved a fourth-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per share, or 6.3%, increase over the dividend paid in the fourth quarter of 2023. This is the Company's twelfth consecutive year of annual dividend increases. The dividend will be paid on December 16, 2024 to stockholders of record as of December 2, 2024.
Stock Repurchase
- The Company purchased 7,600 shares of its common stock during 2024 at an average price of $33.02 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 September 30, 2024, there were 1,992,400 shares available for repurchase under this plan.
Evans Bancorp, Inc. Merger
- On September 9, 2024, NBT announced that it had entered into an agreement to acquire Evans Bancorp, Inc. ("Evans"), an 18 branch community bank headquartered in Williamsville, NY, in an all stock transaction. Evans had assets of $2.26 billion, deposits of $1.89 billion and net loans of $1.74 billion as of June 30, 2024. The merger is expected to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions, including approval by the shareholders of Evans and the receipt of required regulatory approvals.
Conference Call and Webcast
The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, October 29, 2024, to review the third quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company's Event Calendar page at www.nbtbancorp.com/bn/presentations-events.htmlevents 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 $13.84 billion at September 30, 2024. 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 155 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.nbtbank.com/Insurance.
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, including actual or potential stress in the banking industry, 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 rates, 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 the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company's borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) governmental approvals of the Evans merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (14) the shareholders of Evans may fail to approve the merger; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) 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 and other accounting standard setters; (19) changes in the Company's organization, compensation and benefit plans; (20) 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; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) the Company's success at managing the risks involved in the foregoing items.
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.
| Contact: | Scott A. Kingsley, President and CEO Annette L. Burns, Executive Vice President and CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6589 |
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
| Selected Financial Data | |||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Profitability (reported) | |||||||||||||||
| Diluted earnings per share | $ | 0.80 | $ | 0.69 | $ | 0.71 | $ | 0.64 | $ | 0.54 | |||||
| Weighted average diluted common shares outstanding | 47,473,417 | 47,382,814 | 47,370,145 | 47,356,899 | 45,398,937 | ||||||||||
| Return on average assets(3) | 1.12 | % | 0.98 | % | 1.02 | % | 0.89 | % | 0.76 | % | |||||
| Return on average equity(3) | 10.21 | % | 9.12 | % | 9.52 | % | 8.79 | % | 7.48 | % | |||||
| Return on average tangible common equity(1)(3) | 14.54 | % | 13.23 | % | 13.87 | % | 13.08 | % | 10.73 | % | |||||
| Net interest margin(1)(3) | 3.27 | % | 3.18 | % | 3.14 | % | 3.15 | % | 3.21 | % | |||||
| 9 Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Profitability (reported) | |||||||||||||||
| Diluted earnings per share | $ | 2.21 | $ | 2.01 | |||||||||||
| Weighted average diluted common shares outstanding | 47,409,906 | 43,896,042 | |||||||||||||
| Return on average assets(3) | 1.04 | % | 0.97 | % | |||||||||||
| Return on average equity(3) | 9.62 | % | 9.54 | % | |||||||||||
| Return on average tangible common equity(1)(3) | 13.89 | % | 13.00 | % | |||||||||||
| Net interest margin(1)(3) | 3.20 | % | 3.34 | % | |||||||||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Profitability (operating) | |||||||||||||||
| Diluted earnings per share(1) | $ | 0.80 | $ | 0.69 | $ | 0.68 | $ | 0.72 | $ | 0.84 | |||||
| Return on average assets(1)(3) | 1.12 | % | 0.98 | % | 0.97 | % | 0.99 | % | 1.19 | % | |||||
| Return on average equity(1)(3) | 10.23 | % | 9.14 | % | 9.04 | % | 9.79 | % | 11.65 | % | |||||
| Return on average tangible common equity(1)(3) | 14.56 | % | 13.26 | % | 13.20 | % | 14.49 | % | 16.43 | % | |||||
| 9 Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Profitability (operating) | |||||||||||||||
| Diluted earnings per share(1) | $ | 2.17 | $ | 2.53 | |||||||||||
| Return on average assets(1)(3) | 1.03 | % | 1.22 | % | |||||||||||
| Return on average equity(1)(3) | 9.48 | % | 11.98 | % | |||||||||||
| Return on average tangible common equity(1)(3) | 13.69 | % | 16.25 | % | |||||||||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Balance sheet data | |||||||||||||||
| Short-term interest-bearing accounts | $ | 231,671 | $ | 35,207 | $ | 156,632 | $ | 31,378 | $ | 459,296 | |||||
| Securities available for sale | 1,509,338 | 1,439,445 | 1,418,471 | 1,430,858 | 1,399,032 | ||||||||||
| Securities held to maturity | 854,941 | 878,909 | 890,863 | 905,267 | 914,520 | ||||||||||
| Net loans | 9,787,541 | 9,733,847 | 9,572,777 | 9,536,313 | 9,552,774 | ||||||||||
| Total assets | 13,839,552 | 13,501,909 | 13,439,199 | 13,309,040 | 13,827,628 | ||||||||||
| Total deposits | 11,588,278 | 11,271,459 | 11,195,289 | 10,968,994 | 11,401,452 | ||||||||||
| Total borrowings | 456,666 | 476,082 | 518,190 | 637,387 | 740,603 | ||||||||||
| Total liabilities | 12,317,572 | 12,039,954 | 11,997,784 | 11,883,349 | 12,464,807 | ||||||||||
| Stockholders' equity | 1,521,980 | 1,461,955 | 1,441,415 | 1,425,691 | 1,362,821 | ||||||||||
| Capital | |||||||||||||||
| Equity to assets | 11.00 | % | 10.83 | % | 10.73 | % | 10.71 | % | 9.86 | % | |||||
| Tangible equity ratio(1) | 8.36 | % | 8.11 | % | 7.98 | % | 7.93 | % | 7.15 | % | |||||
| Book value per share | $ | 32.26 | $ | 31.00 | $ | 30.57 | $ | 30.26 | $ | 28.94 | |||||
| Tangible book value per share(2) | $ | 23.83 | $ | 22.54 | $ | 22.07 | $ | 21.72 | $ | 20.39 | |||||
| Leverage ratio | 10.29 | % | 10.16 | % | 10.09 | % | 9.71 | % | 10.23 | % | |||||
| Common equity tier 1 capital ratio | 11.86 | % | 11.70 | % | 11.68 | % | 11.57 | % | 11.31 | % | |||||
| Tier 1 capital ratio | 12.77 | % | 12.61 | % | 12.61 | % | 12.50 | % | 12.23 | % | |||||
| Total risk-based capital ratio | 15.02 | % | 14.88 | % | 14.87 | % | 14.75 | % | 14.45 | % | |||||
| Common stock price (end of period) | $ | 44.23 | $ | 38.60 | $ | 36.68 | $ | 41.91 | $ | 31.69 | |||||
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
| Asset Quality and Consolidated Loan Balances | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Asset quality | |||||||||||||||
| Nonaccrual loans | $ | 33,338 | $ | 34,755 | $ | 35,189 | $ | 34,213 | $ | 20,736 | |||||
| 90 days past due and still accruing | 3,981 | 3,333 | 2,600 | 3,661 | 3,528 | ||||||||||
| Total nonperforming loans | 37,319 | 38,088 | 37,789 | 37,874 | 24,264 | ||||||||||
| Other real estate owned | 127 | 74 | - | - | - | ||||||||||
| Total nonperforming assets | 37,446 | 38,162 | 37,789 | 37,874 | 24,264 | ||||||||||
| Allowance for loan losses | 119,500 | 120,500 | 115,300 | 114,400 | 114,601 | ||||||||||
| Asset quality ratios | |||||||||||||||
| Allowance for loan losses to total loans | 1.21 | % | 1.22 | % | 1.19 | % | 1.19 | % | 1.19 | % | |||||
| Total nonperforming loans to total loans | 0.38 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.25 | % | |||||
| Total nonperforming assets to total assets | 0.27 | % | 0.28 | % | 0.28 | % | 0.28 | % | 0.18 | % | |||||
| Allowance for loan losses to total nonperforming loans | 320.21 | % | 316.37 | % | 305.12 | % | 302.05 | % | 472.31 | % | |||||
| Past due loans to total loans(4) | 0.36 | % | 0.30 | % | 0.33 | % | 0.32 | % | 0.49 | % | |||||
| Net charge-offs to average loans(3) | 0.16 | % | 0.15 | % | 0.19 | % | 0.22 | % | 0.18 | % | |||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Loan net charge-offs by line of business | |||||||||||||||
| Commercial | $ | 807 | $ | (8 | ) | $ | 772 | $ | 1,107 | $ | (344 | ) | |||
| Residential real estate and home equity | (64 | ) | (76 | ) | (32 | ) | 11 | (75 | ) | ||||||
| Indirect auto | 725 | 747 | 665 | 399 | 451 | ||||||||||
| Residential solar | 1,599 | 1,610 | 1,211 | 1,081 | 1,253 | ||||||||||
| Other consumer | 853 | 1,426 | 2,063 | 2,729 | 2,919 | ||||||||||
| Total loan net charge-offs | $ | 3,920 | $ | 3,699 | $ | 4,679 | $ | 5,327 | $ | 4,204 | |||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Allowance for loan losses as a percentage of loans by segment | |||||||||||||||
| Commercial & industrial | 0.73 | % | 0.76 | % | 0.79 | % | 0.84 | % | 0.87 | % | |||||
| Commercial real estate | 1.01 | % | 1.00 | % | 0.97 | % | 0.99 | % | 1.00 | % | |||||
| Residential real estate | 1.00 | % | 0.98 | % | 0.89 | % | 0.84 | % | 0.79 | % | |||||
| Auto | 0.83 | % | 0.85 | % | 0.81 | % | 0.83 | % | 0.82 | % | |||||
| Residential solar | 3.70 | % | 3.76 | % | 3.58 | % | 3.28 | % | 3.19 | % | |||||
| Other consumer | 3.51 | % | 4.09 | % | 4.24 | % | 4.70 | % | 5.23 | % | |||||
| Total | 1.21 | % | 1.22 | % | 1.19 | % | 1.19 | % | 1.19 | % | |||||
| 2024 | 2023 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
| Loans by line of business | |||||||||||||||
| Commercial & industrial | $ | 1,458,926 | $ | 1,397,935 | $ | 1,353,446 | $ | 1,354,248 | $ | 1,424,579 | |||||
| Commercial real estate | 3,792,498 | 3,784,214 | 3,646,739 | 3,626,910 | 3,575,595 | ||||||||||
| Residential real estate | 2,143,766 | 2,134,875 | 2,133,289 | 2,125,804 | 2,111,670 | ||||||||||
| Home equity | 328,687 | 326,556 | 328,673 | 337,214 | 340,777 | ||||||||||
| Indirect auto | 1,235,175 | 1,225,786 | 1,190,734 | 1,130,132 | 1,099,558 | ||||||||||
| Residential solar | 839,659 | 861,883 | 896,147 | 917,755 | 934,082 | ||||||||||
| Other consumer | 108,330 | 123,098 | 139,049 | 158,650 | 181,114 | ||||||||||
| Total loans | $ | 9,907,041 | $ | 9,854,347 | $ | 9,688,077 | $ | 9,650,713 | $ | 9,667,375 | |||||
| NBT Bancorp Inc. and Subsidiaries | |||||
| Consolidated Balance Sheets | |||||
| (unaudited, in thousands) | |||||
| September 30, | December 31, | ||||
| 2024 | 2023 | ||||
| Assets | |||||
| Cash and due from banks | $ | 250,788 | $ | 173,811 | |
| Short-term interest-bearing accounts | 231,671 | 31,378 | |||
| Equity securities, at fair value | 41,974 | 37,591 | |||
| Securities available for sale, at fair value | 1,509,338 | 1,430,858 | |||
| Securities held to maturity (fair value $781,868 and $814,524, respectively) | 854,941 | 905,267 | |||
| Federal Reserve and Federal Home Loan Bank stock | 37,732 | 45,861 | |||
| Loans held for sale | 3,713 | 3,371 | |||
| Loans | 9,907,041 | 9,650,713 | |||
| Less allowance for loan losses | 119,500 | 114,400 | |||
| Net loans | $ | 9,787,541 | $ | 9,536,313 | |
| Premises and equipment, net | 80,133 | 80,675 | |||
| Goodwill | 362,010 | 361,851 | |||
| Intangible assets, net | 35,843 | 40,443 | |||
| Bank owned life insurance | 271,178 | 265,732 | |||
| Other assets | 372,690 | 395,889 | |||
| Total assets | $ | 13,839,552 | $ | 13,309,040 | |
| Liabilities and stockholders' equity | |||||
| Demand (noninterest bearing) | $ | 3,476,218 | $ | 3,413,829 | |
| Savings, NOW and money market | 6,678,936 | 6,230,456 | |||
| Time | 1,433,124 | 1,324,709 | |||
| Total deposits | $ | 11,588,278 | $ | 10,968,994 | |
| Short-term borrowings | 204,959 | 386,651 | |||
| Long-term debt | 29,682 | 29,796 | |||
| Subordinated debt, net | 120,829 | 119,744 | |||
| Junior subordinated debt | 101,196 | 101,196 | |||
| Other liabilities | 272,628 | 276,968 | |||
| Total liabilities | $ | 12,317,572 | $ | 11,883,349 | |
| Total stockholders' equity | $ | 1,521,980 | $ | 1,425,691 | |
| Total liabilities and stockholders' equity | $ | 13,839,552 | $ | 13,309,040 | |
| NBT Bancorp Inc. and Subsidiaries | |||||||||||
| Consolidated Statements of Income | |||||||||||
| (unaudited, in thousands except per share data) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
| September 30, | September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Interest, fee and dividend income | |||||||||||
| Interest and fees on loans | $ | 141,991 | $ | 122,097 | $ | 411,743 | $ | 329,931 | |||
| Securities available for sale | 7,815 | 7,495 | 22,501 | 22,604 | |||||||
| Securities held to maturity | 5,042 | 5,281 | 15,535 | 15,307 | |||||||
| Other | 1,382 | 2,221 | 4,154 | 4,033 | |||||||
| Total interest, fee and dividend income | $ | 156,230 | $ | 137,094 | $ | 453,933 | $ | 371,875 | |||
| Interest expense | |||||||||||
| Deposits | $ | 49,106 | $ | 30,758 | $ | 140,133 | $ | 61,888 | |||
| Short-term borrowings | 1,431 | 7,612 | 7,751 | 20,657 | |||||||
| Long-term debt | 292 | 294 | 873 | 631 | |||||||
| Subordinated debt | 1,810 | 1,612 | 5,416 | 4,281 | |||||||
| Junior subordinated debt | 1,922 | 1,923 | 5,743 | 5,372 | |||||||
| Total interest expense | $ | 54,561 | $ | 42,199 | $ | 159,916 | $ | 92,829 | |||
| Net interest income | $ | 101,669 | $ | 94,895 | $ | 294,017 | $ | 279,046 | |||
| Provision for loan losses | 2,920 | 3,883 | 17,398 | 11,398 | |||||||
| Provision for loan losses - acquisition day 1 non-PCD | - | 8,750 | - | 8,750 | |||||||
| Total provision for loan losses | $ | 2,920 | $ | 12,633 | $ | 17,398 | $ | 20,148 | |||
| Net interest income after provision for loan losses | $ | 98,749 | $ | 82,262 | $ | 276,619 | $ | 258,898 | |||
| Noninterest income | |||||||||||
| Service charges on deposit accounts | $ | 4,340 | $ | 3,979 | $ | 12,676 | $ | 11,260 | |||
| Card services income | 5,897 | 5,503 | 16,679 | 15,469 | |||||||
| Retirement plan administration fees | 14,578 | 12,798 | 43,663 | 35,995 | |||||||
| Wealth management | 10,929 | 9,297 | 30,799 | 25,611 | |||||||
| Insurance services | 4,913 | 4,361 | 13,149 | 12,008 | |||||||
| Bank owned life insurance income | 1,868 | 1,568 | 6,054 | 4,974 | |||||||
| Net securities gains (losses) | 476 | (183 | ) | 2,567 | (9,822 | ) | |||||
| Other | 2,773 | 2,913 | 8,811 | 8,195 | |||||||
| Total noninterest income | $ | 45,774 | $ | 40,236 | $ | 134,398 | $ | 103,690 | |||
| Noninterest expense | |||||||||||
| Salaries and employee benefits | $ | 59,641 | $ | 49,248 | $ | 170,738 | $ | 144,237 | |||
| Technology and data services | 9,920 | 9,677 | 28,919 | 27,989 | |||||||
| Occupancy | 7,754 | 7,090 | 23,523 | 21,233 | |||||||
| Professional fees and outside services | 4,871 | 4,149 | 14,289 | 12,486 | |||||||
| Amortization of intangible assets | 2,062 | 1,609 | 6,363 | 2,603 | |||||||
| Reserve for unfunded loan commitments | 250 | 460 | (580 | ) | (270 | ) | |||||
| Acquisition expenses | 543 | 7,917 | 543 | 9,724 | |||||||
| Other | 10,704 | 10,647 | 33,311 | 30,911 | |||||||
| Total noninterest expense | $ | 95,745 | $ | 90,797 | $ | 277,106 | $ | 248,913 | |||
| Income before income tax expense | $ | 48,778 | $ | 31,701 | $ | 133,911 | $ | 113,675 | |||
| Income tax expense | 10,681 | 7,095 | 29,275 | 25,339 | |||||||
| Net income | $ | 38,097 | $ | 24,606 | $ | 104,636 | $ | 88,336 | |||
| Earnings Per Share | |||||||||||
| Basic | $ | 0.81 | $ | 0.54 | $ | 2.22 | $ | 2.02 | |||
| Diluted | $ | 0.80 | $ | 0.54 | $ | 2.21 | $ | 2.01 | |||
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||
| Quarterly Consolidated Statements of Income | |||||||||||||
| (unaudited, in thousands except per share data) | |||||||||||||
| 2024 | 2023 | ||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||
| Interest, fee and dividend income | |||||||||||||
| Interest and fees on loans | $ | 141,991 | $ | 136,606 | $ | 133,146 | $ | 132,738 | $ | 122,097 | |||
| Securities available for sale | 7,815 | 7,562 | 7,124 | 7,208 | 7,495 | ||||||||
| Securities held to maturity | 5,042 | 5,190 | 5,303 | 5,374 | 5,281 | ||||||||
| Other | 1,382 | 1,408 | 1,364 | 5,594 | 2,221 | ||||||||
| Total interest, fee and dividend income | $ | 156,230 | $ | 150,766 | $ | 146,937 | $ | 150,914 | $ | 137,094 | |||
| Interest expense | |||||||||||||
| Deposits | $ | 49,106 | $ | 46,688 | $ | 44,339 | $ | 42,753 | $ | 30,758 | |||
| Short-term borrowings | 1,431 | 2,899 | 3,421 | 4,951 | 7,612 | ||||||||
| Long-term debt | 292 | 291 | 290 | 294 | 294 | ||||||||
| Subordinated debt | 1,810 | 1,806 | 1,800 | 1,795 | 1,612 | ||||||||
| Junior subordinated debt | 1,922 | 1,908 | 1,913 | 1,948 | 1,923 | ||||||||
| Total interest expense | $ | 54,561 | $ | 53,592 | $ | 51,763 | $ | 51,741 | $ | 42,199 | |||
| Net interest income | $ | 101,669 | $ | 97,174 | $ | 95,174 | $ | 99,173 | $ | 94,895 | |||
| Provision for loan losses | $ | 2,920 | $ | 8,899 | $ | 5,579 | $ | 5,126 | $ | 3,883 | |||
| Provision for loan losses - acquisition day 1 non-PCD | - | - | - | - | 8,750 | ||||||||
| Total provision for loan losses | $ | 2,920 | $ | 8,899 | $ | 5,579 | $ | 5,126 | $ | 12,633 | |||
| Net interest income after provision for loan losses | $ | 98,749 | $ | 88,275 | $ | 89,595 | $ | 94,047 | $ | 82,262 | |||
| Noninterest income | |||||||||||||
| Service charges on deposit accounts | $ | 4,340 | $ | 4,219 | $ | 4,117 | $ | 4,165 | $ | 3,979 | |||
| Card services income | 5,897 | 5,587 | 5,195 | 5,360 | 5,503 | ||||||||
| Retirement plan administration fees | 14,578 | 14,798 | 14,287 | 11,226 | 12,798 | ||||||||
| Wealth management | 10,929 | 10,173 | 9,697 | 9,152 | 9,297 | ||||||||
| Insurance services | 4,913 | 3,848 | 4,388 | 3,659 | 4,361 | ||||||||
| Bank owned life insurance income | 1,868 | 1,834 | 2,352 | 1,776 | 1,568 | ||||||||
| Net securities gains (losses) | 476 | (92 | ) | 2,183 | 507 | (183 | ) | ||||||
| Other | 2,773 | 2,865 | 3,173 | 2,643 | 2,913 | ||||||||
| Total noninterest income | $ | 45,774 | $ | 43,232 | $ | 45,392 | $ | 38,488 | $ | 40,236 | |||
| Noninterest expense | |||||||||||||
| Salaries and employee benefits | $ | 59,641 | $ | 55,393 | $ | 55,704 | $ | 50,013 | $ | 49,248 | |||
| Technology and data services | 9,920 | 9,249 | 9,750 | 10,174 | 9,677 | ||||||||
| Occupancy | 7,754 | 7,671 | 8,098 | 7,175 | 7,090 | ||||||||
| Professional fees and outside services | 4,871 | 4,565 | 4,853 | 5,115 | 4,149 | ||||||||
| Amortization of intangible assets | 2,062 | 2,133 | 2,168 | 2,131 | 1,609 | ||||||||
| Reserve for unfunded loan commitments | 250 | (380 | ) | (450 | ) | 300 | 460 | ||||||
| Impairment of a minority interest equity investment | - | - | - | 4,750 | - | ||||||||
| Acquisition expenses | 543 | - | - | 254 | 7,917 | ||||||||
| Other | 10,704 | 10,957 | 11,650 | 12,839 | 10,647 | ||||||||
| Total noninterest expense | $ | 95,745 | $ | 89,588 | $ | 91,773 | $ | 92,751 | $ | 90,797 | |||
| Income before income tax expense | $ | 48,778 | $ | 41,919 | $ | 43,214 | $ | 39,784 | $ | 31,701 | |||
| Income tax expense | 10,681 | 9,203 | 9,391 | 9,338 | 7,095 | ||||||||
| Net income | $ | 38,097 | $ | 32,716 | $ | 33,823 | $ | 30,446 | $ | 24,606 | |||
| Earnings Per Share | |||||||||||||
| Basic | $ | 0.81 | $ | 0.69 | $ | 0.72 | $ | 0.65 | $ | 0.54 | |||
| Diluted | $ | 0.80 | $ | 0.69 | $ | 0.71 | $ | 0.64 | $ | 0.54 | |||
| 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 | ||||||||||||
| Q3 - 2024 | Q2 - 2024 | Q1 - 2024 | Q4 - 2023 | Q3 - 2023 | |||||||||||||||||
| Assets | |||||||||||||||||||||
| Short-term interest-bearing accounts | $ | 62,210 | 4.87 | % | $ | 48,861 | 5.48 | % | $ | 47,972 | 4.48 | % | $ | 319,907 | 5.59 | % | $ | 121,384 | 4.26 | % | |
| Securities taxable(1) | 2,266,930 | 1.99 | % | 2,280,767 | 1.97 | % | 2,278,029 | 1.91 | % | 2,310,409 | 1.88 | % | 2,364,809 | 1.90 | % | ||||||
| Securities tax-exempt(1)(5) | 217,251 | 3.47 | % | 226,032 | 3.56 | % | 230,468 | 3.58 | % | 232,575 | 3.51 | % | 219,427 | 3.34 | % | ||||||
| FRB and FHLB stock | 35,395 | 6.97 | % | 40,283 | 7.41 | % | 42,296 | 7.89 | % | 47,994 | 8.98 | % | 53,841 | 6.76 | % | ||||||
| Loans(1)(6) | 9,865,412 | 5.74 | % | 9,772,014 | 5.63 | % | 9,674,892 | 5.54 | % | 9,653,191 | 5.47 | % | 9,043,582 | 5.36 | % | ||||||
| Total interest-earning assets | $ | 12,447,198 | 5.01 | % | $ | 12,367,957 | 4.92 | % | $ | 12,273,657 | 4.84 | % | $ | 12,564,076 | 4.79 | % | $ | 11,803,043 | 4.63 | % | |
| Other assets | 1,072,277 | 1,064,487 | 1,055,386 | 1,052,024 | 968,220 | ||||||||||||||||
| Total assets | $ | 13,519,475 | $ | 13,432,444 | $ | 13,329,043 | $ | 13,616,100 | $ | 12,771,263 | |||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||||||
| Money market deposit accounts | $ | 3,342,845 | 3.68 | % | $ | 3,254,252 | 3.65 | % | $ | 3,129,160 | 3.56 | % | $ | 3,045,531 | 3.43 | % | $ | 2,422,451 | 2.91 | % | |
| NOW deposit accounts | 1,600,547 | 0.87 | % | 1,603,695 | 0.78 | % | 1,600,288 | 0.75 | % | 1,645,401 | 0.80 | % | 1,513,420 | 0.57 | % | ||||||
| Savings deposits | 1,566,316 | 0.05 | % | 1,586,753 | 0.05 | % | 1,607,659 | 0.04 | % | 1,666,915 | 0.04 | % | 1,707,094 | 0.04 | % | ||||||
| Time deposits | 1,442,424 | 4.00 | % | 1,391,062 | 4.00 | % | 1,352,559 | 4.00 | % | 1,343,548 | 3.81 | % | 1,178,352 | 3.60 | % | ||||||
| Total interest-bearing deposits | $ | 7,952,132 | 2.46 | % | $ | 7,835,762 | 2.40 | % | $ | 7,689,666 | 2.32 | % | $ | 7,701,395 | 2.20 | % | $ | 6,821,317 | 1.79 | % | |
| Federal funds purchased | 2,609 | 5.34 | % | 29,945 | 5.56 | % | 19,769 | 5.53 | % | 217 | 5.48 | % | 6,033 | 5.39 | % | ||||||
| Repurchase agreements | 98,035 | 2.80 | % | 86,405 | 1.55 | % | 82,419 | 1.55 | % | 82,387 | 1.59 | % | 71,516 | 1.40 | % | ||||||
| Short-term borrowings | 48,875 | 5.74 | % | 155,159 | 5.58 | % | 213,390 | 5.34 | % | 345,250 | 5.31 | % | 540,380 | 5.34 | % | ||||||
| Long-term debt | 29,696 | 3.91 | % | 29,734 | 3.94 | % | 29,772 | 3.92 | % | 29,809 | 3.91 | % | 29,800 | 3.91 | % | ||||||
| Subordinated debt, net | 120,594 | 5.97 | % | 120,239 | 6.04 | % | 119,873 | 6.04 | % | 119,531 | 5.96 | % | 109,160 | 5.86 | % | ||||||
| Junior subordinated debt | 101,196 | 7.56 | % | 101,196 | 7.58 | % | 101,196 | 7.60 | % | 101,196 | 7.64 | % | 101,196 | 7.54 | % | ||||||
| Total interest-bearing liabilities | $ | 8,353,137 | 2.60 | % | $ | 8,358,440 | 2.58 | % | $ | 8,256,085 | 2.52 | % | $ | 8,379,785 | 2.45 | % | $ | 7,679,402 | 2.18 | % | |
| Demand deposits | 3,389,894 | 3,323,906 | 3,356,607 | 3,535,815 | 3,498,424 | ||||||||||||||||
| Other liabilities | 292,446 | 306,747 | 286,749 | 326,857 | 287,751 | ||||||||||||||||
| Stockholders' equity | 1,483,998 | 1,443,351 | 1,429,602 | 1,373,643 | 1,305,686 | ||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,519,475 | $ | 13,432,444 | $ | 13,329,043 | $ | 13,616,100 | $ | 12,771,263 | |||||||||||
| Interest rate spread | 2.41 | % | 2.34 | % | 2.32 | % | 2.34 | % | 2.45 | % | |||||||||||
| Net interest margin (FTE)(1) | 3.27 | % | 3.18 | % | 3.14 | % | 3.15 | % | 3.21 | % | |||||||||||
| 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 | ||||||||||||
| Nine Months Ended September 30, | 2024 | 2023 | |||||||||||||||
| Assets | |||||||||||||||||
| Short-term interest-bearing accounts | $ | 53,048 | $ | 1,963 | 4.94 | % | $ | 61,677 | $ | 1,751 | 3.80 | % | |||||
| Securities taxable(1) | 2,275,212 | 33,336 | 1.96 | % | 2,400,237 | 34,218 | 1.91 | % | |||||||||
| Securities tax-exempt(1)(5) | 224,557 | 5,950 | 3.54 | % | 207,812 | 4,675 | 3.01 | % | |||||||||
| FRB and FHLB stock | 39,310 | 2,191 | 7.45 | % | 48,860 | 2,282 | 6.24 | % | |||||||||
| Loans(1)(6) | 9,771,118 | 412,448 | 5.64 | % | 8,516,793 | 330,314 | 5.19 | % | |||||||||
| Total interest-earning assets | $ | 12,363,245 | $ | 455,888 | 4.93 | % | $ | 11,235,379 | $ | 373,240 | 4.44 | % | |||||
| Other assets | 1,064,080 | 880,655 | |||||||||||||||
| Total assets | $ | 13,427,325 | $ | 12,116,034 | |||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||
| Money market deposit accounts | $ | 3,242,453 | $ | 88,185 | 3.63 | % | $ | 2,207,126 | $ | 36,107 | 2.19 | % | |||||
| NOW deposit accounts | 1,601,507 | 9,630 | 0.80 | % | 1,525,089 | 4,989 | 0.44 | % | |||||||||
| Savings deposits | 1,586,834 | 541 | 0.05 | % | 1,732,205 | 462 | 0.04 | % | |||||||||
| Time deposits | 1,395,520 | 41,777 | 4.00 | % | 893,407 | 20,330 | 3.04 | % | |||||||||
| Total interest-bearing deposits | $ | 7,826,314 | $ | 140,133 | 2.39 | % | $ | 6,357,827 | $ | 61,888 | 1.30 | % | |||||
| Federal funds purchased | 17,387 | 721 | 5.54 | % | 32,784 | 1,266 | 5.16 | % | |||||||||
| Repurchase agreements | 88,986 | 1,340 | 2.01 | % | 66,162 | 416 | 0.84 | % | |||||||||
| Short-term borrowings | 138,812 | 5,690 | 5.48 | % | 485,804 | 18,975 | 5.22 | % | |||||||||
| Long-term debt | 29,734 | 873 | 3.92 | % | 22,373 | 631 | 3.77 | % | |||||||||
| Subordinated debt, net | 120,237 | 5,416 | 6.02 | % | 101,114 | 4,281 | 5.66 | % | |||||||||
| Junior subordinated debt | 101,196 | 5,743 | 7.58 | % | 101,196 | 5,372 | 7.10 | % | |||||||||
| Total interest-bearing liabilities | $ | 8,322,666 | $ | 159,916 | 2.57 | % | $ | 7,167,260 | $ | 92,829 | 1.73 | % | |||||
| Demand deposits | 3,356,923 | 3,439,275 | |||||||||||||||
| Other liabilities | 295,303 | 271,307 | |||||||||||||||
| Stockholders' equity | 1,452,433 | 1,238,192 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,427,325 | $ | 12,116,034 | |||||||||||||
| Net interest income (FTE)(1) | $ | 295,972 | $ | 280,411 | |||||||||||||
| Interest rate spread | 2.36 | % | 2.71 | % | |||||||||||||
| Net interest margin (FTE)(1) | 3.20 | % | 3.34 | % | |||||||||||||
| Taxable equivalent adjustment | $ | 1,955 | $ | 1,365 | |||||||||||||
| Net interest income | $ | 294,017 | $ | 279,046 | |||||||||||||
| (1) | The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
| Non-GAAP measures | ||||||||||||||||
| (unaudited, dollars in thousands except per share data) | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | ||||||||||||
| Operating net income | ||||||||||||||||
| Net income | $ | 38,097 | $ | 32,716 | $ | 33,823 | $ | 30,446 | $ | 24,606 | ||||||
| Acquisition expenses | 543 | - | - | 254 | 7,917 | |||||||||||
| Acquisition-related provision for credit losses | - | - | - | - | 8,750 | |||||||||||
| Acquisition-related reserve for unfunded loan commitments | - | - | - | - | 836 | |||||||||||
| Impairment of a minority interest equity investment | - | - | - | 4,750 | - | |||||||||||
| Securities (gains) losses | (476 | ) | 92 | (2,183 | ) | (507 | ) | 183 | ||||||||
| Adjustments to net income | $ | 67 | $ | 92 | $ | (2,183 | ) | $ | 4,497 | $ | 17,686 | |||||
| Adjustments to net income (net of tax) | $ | 52 | $ | 72 | $ | (1,703 | ) | $ | 3,435 | $ | 13,730 | |||||
| Operating net income | $ | 38,149 | $ | 32,788 | $ | 32,120 | $ | 33,881 | $ | 38,336 | ||||||
| Operating diluted earnings per share | $ | 0.80 | $ | 0.69 | $ | 0.68 | $ | 0.72 | $ | 0.84 | ||||||
| 9 Months Ended September 30, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Operating net income | ||||||||||||||||
| Net income | $ | 104,636 | $ | 88,336 | ||||||||||||
| Acquisition expenses | 543 | 9,724 | ||||||||||||||
| Acquisition-related provision for credit losses | - | 8,750 | ||||||||||||||
| Acquisition-related reserve for unfunded loan commitments | - | 836 | ||||||||||||||
| Securities (gains) losses | (2,567 | ) | 9,822 | |||||||||||||
| Adjustments to net income | $ | (2,024 | ) | $ | 29,132 | |||||||||||
| Adjustments to net income (net of tax) | $ | (1,579 | ) | $ | 22,577 | |||||||||||
| Operating net income | $ | 103,057 | $ | 110,913 | ||||||||||||
| Operating diluted earnings per share | $ | 2.17 | $ | 2.53 | ||||||||||||
| 2024 | 2023 | |||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | ||||||||||||
| FTE adjustment | ||||||||||||||||
| Net interest income | $ | 101,669 | $ | 97,174 | $ | 95,174 | $ | 99,173 | $ | 94,895 | ||||||
| Add: FTE adjustment | 639 | 658 | 658 | 669 | 568 | |||||||||||
| Net interest income (FTE) | $ | 102,308 | $ | 97,832 | $ | 95,832 | $ | 99,842 | $ | 95,463 | ||||||
| Average earning assets | $ | 12,447,198 | $ | 12,367,957 | $ | 12,273,657 | $ | 12,564,076 | $ | 11,803,043 | ||||||
| Net interest margin (FTE)(3) | 3.27 | % | 3.18 | % | 3.14 | % | 3.15 | % | 3.21 | % | ||||||
| 9 Months Ended September 30, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| FTE adjustment | ||||||||||||||||
| Net interest income | $ | 294,017 | $ | 279,046 | ||||||||||||
| Add: FTE adjustment | 1,955 | 1,365 | ||||||||||||||
| Net interest income (FTE) | $ | 295,972 | $ | 280,411 | ||||||||||||
| Average earning assets | $ | 12,363,245 | $ | 11,235,379 | ||||||||||||
| Net interest margin (FTE)(3) | 3.20 | % | 3.34 | % | ||||||||||||
| Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%. | ||||||||||||||||
| (1) | The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
| Non-GAAP measures (continued) | ||||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | ||||||||||||
| Tangible equity to tangible assets | ||||||||||||||||
| Total equity | $ | 1,521,980 | $ | 1,461,955 | $ | 1,441,415 | $ | 1,425,691 | $ | 1,362,821 | ||||||
| Intangible assets | 397,853 | 398,686 | 400,819 | 402,294 | 402,745 | |||||||||||
| Total assets | $ | 13,839,552 | $ | 13,501,909 | $ | 13,439,199 | $ | 13,309,040 | $ | 13,827,628 | ||||||
| Tangible equity to tangible assets | 8.36 | % | 8.11 | % | 7.98 | % | 7.93 | % | 7.15 | % | ||||||
| 2024 | 2023 | |||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | ||||||||||||
| Return on average tangible common equity | ||||||||||||||||
| Net income | $ | 38,097 | $ | 32,716 | $ | 33,823 | $ | 30,446 | $ | 24,606 | ||||||
| Amortization of intangible assets (net of tax) | 1,547 | 1,600 | 1,626 | 1,599 | 1,206 | |||||||||||
| Net income, excluding intangibles amortization | $ | 39,644 | $ | 34,316 | $ | 35,449 | $ | 32,045 | $ | 25,812 | ||||||
| Average stockholders' equity | $ | 1,483,998 | $ | 1,443,351 | $ | 1,429,602 | $ | 1,373,643 | $ | 1,305,686 | ||||||
| Less: average goodwill and other intangibles | 399,113 | 399,968 | 401,756 | 401,978 | 350,912 | |||||||||||
| Average tangible common equity | $ | 1,084,885 | $ | 1,043,383 | $ | 1,027,846 | $ | 971,665 | $ | 954,774 | ||||||
| Return on average tangible common equity(3) | 14.54 | % | 13.23 | % | 13.87 | % | 13.08 | % | 10.73 | % | ||||||
| 9 Months Ended September 30, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Return on average tangible common equity | ||||||||||||||||
| Net income | $ | 104,636 | $ | 88,336 | ||||||||||||
| Amortization of intangible assets (net of tax) | 4,772 | 1,952 | ||||||||||||||
| Net income, excluding intangibles amortization | $ | 109,408 | $ | 90,288 | ||||||||||||
| Average stockholders' equity | $ | 1,452,433 | $ | 1,238,192 | ||||||||||||
| Less: average goodwill and other intangibles | 400,275 | 309,309 | ||||||||||||||
| Average tangible common equity | $ | 1,052,158 | $ | 928,883 | ||||||||||||
| Return on average tangible common equity(3) | 13.89 | % | 13.00 | % | ||||||||||||
| (2) | Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | |||||||||||||||
| (3) | Annualized. | |||||||||||||||
| (4) | Total past due loans, defined as loans 30 days or more past due and in an accrual status. | |||||||||||||||
| (5) | Securities are shown at average amortized cost. | |||||||||||||||
| (6) | For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. | |||||||||||||||
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