UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 2021
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (607 ) 337-2265
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of class
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Trading Symbol
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Name of exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 |
Results of Operations and Financial Condition
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On July 26, 2021, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended June 30, 2021. That press release
is furnished as Exhibit 99.1 hereto. A conference call will be held at 8:30 a.m. Eastern Time on Tuesday, July 27, 2021, to review the second quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides,
will be available on the Event Calendar page of the Company’s website at www.nbtbancorp.com.
| Item 9.01 |
Financial Statements and Exhibits.
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Not applicable.
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Not applicable.
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Not applicable.
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| (d) |
Exhibits.
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Exhibit No.
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Description
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Press release of NBT Bancorp Inc. dated July 26, 2021
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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NBT BANCORP INC.
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Date: July 26, 2021
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By:
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/s/ Scott A. Kinglsey
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Scott A. Kingsley
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Executive Vice President
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and Chief Financial Officer
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Exhibit 99.1
1
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FOR IMMEDIATE RELEASE
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ATTENTION: FINANCIAL AND BUSINESS EDITORS
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Contact:
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John H. Watt, Jr., President and CEO
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Scott A. Kingsley, Executive Vice President and CFO
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NBT Bancorp Inc.
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52 South Broad Street
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Norwich, NY 13815
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607-337-6589
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NBT BANCORP INC. ANNOUNCES SECOND QUARTER NET INCOME OF $40.3 MILLION ($0.92 PER DILUTED COMMON SHARE); APPROVES A 3.7% DIVIDEND INCREASE
NORWICH, NY (July 26, 2021) – 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, 2021.
Net income for the three months ended June 30, 2021 was $40.3 million, or $0.92 per diluted common share. Net income increased $15.6 million from the second quarter of
2020 primarily due to the estimated impact of the COVID-19 pandemic on expected credit losses in 2020, which resulted in a second quarter 2020 provision for loan losses of $18.8 million. Net income increased $0.5 million from the previous quarter
primarily due to lower provision for loan losses and higher noninterest income, partly offset by higher noninterest expense.
Pre-provision net revenue (“PPNR”)1 for the second quarter of 2021 was $49.0 million compared to $47.5 million in the previous quarter and $50.7 million in
the second quarter of 2020.
CEO Comments
“Through the first half of 2021 momentum at NBT has continued to build,” said NBT President and CEO John H. Watt, Jr. “Our team has driven growth with increases in total
loans and pivoted quickly from supporting our customers and communities through the worst of the pandemic and the reopening of our markets to full-on execution of our strategic growth plans. We continue to prioritize our disciplined approach to the
allocation of capital, including the advancement of our New England expansion with our first full-service locations in Connecticut opening in the second quarter. Our continued strong capital generation and our commitment to enhancing long-term
shareholder value resulted in our decision to increase our quarterly dividend to $0.28 per share, a 3.7% increase.”
2
Second Quarter Financial Highlights
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Net Income
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◾ |
Net income of $40.3 million
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| ◾ | Diluted earnings per share of $0.92 | |
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Net Interest
Income / NIM
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◾ |
Net interest income on a fully taxable equivalent basis was $79.5 million1
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| ◾ | Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.00%1, down 17 basis points (“bps”) from the prior quarter | |
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PPNR
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◾
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PPNR1 was $49.0 million compared to $47.5 million in the first quarter of 2021 and $50.7 million in the second quarter of 2020
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Loans and Credit
Quality
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◾ |
Period end loans were $7.5 billion, up 1%, annualized, from December 31, 2020
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| ◾ | Excluding $360 million of Paycheck Protection Program (“PPP”) loans at June 30, 2021, period end loans increased $61 million or 0.9% from March 31, 2021 | |
| ◾ | Allowance for loan losses to total loans of 1.31% (1.38% excluding PPP loans and related allowance), down 7 bps from the first quarter 2021 (down 10 bps excluding PPP loans and related allowance) | |
| ◾ | Net charge-offs to average loans was 0.07%, annualized (0.07% excluding PPP loans) | |
| ◾ | Nonperforming assets to total assets was 0.38% (0.39% excluding PPP loans) | |
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Capital
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◾
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Tangible book value per share2 grew 4% for the quarter and 10% from prior year to $21.50 at June 30, 2021 |
| ◾ | Tangible equity to assets of 8.28%1 | |
| ◾ | CET1 ratio of 12.12%; Leverage ratio of 9.40% |
Loans
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Period end total loans were $7.5 billion at June 30, 2021 and at December 31, 2020.
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Excluding PPP loans, period end loans increased $60.9 million from March 31, 2021. Commercial and industrial loans increased $12.4 million to $1.5 billion; commercial real estate loans increased $23.5 million to $2.3 billion; and total
consumer loans increased $25.0 million to $3.4 billion.
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Total PPP loans as of June 30, 2021 were $360 million (net of unamortized fees). The following activity occurred during the second quarter of 2021:
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| o |
$37 million in originations
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$232.3 million of loans forgiven
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$4.7 million of interest and fees recognized into interest income
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Commercial line of credit utilization rate was 22% at June 30, 2021 consistent with 22% at March 31, 2021 and compared to 26% at June 30, 2020.
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Average total deposits in the second quarter of 2021 were $9.9 billion, compared to $9.3 billion in the first quarter of 2021, driven by increases in non-interest bearing demand deposit accounts, money market deposit accounts and savings
deposit accounts.
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Loan to deposit ratio was 76.8% at June 30, 2021, compared to 82.6% at December 31, 2020.
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3
Net Interest Income and Net Interest Margin
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Net interest income for the second quarter of 2021 was $79.2 million, which was consistent with the first quarter of 2021 and down $1.3 million or 1.6% from the second quarter of 2020.
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Excess liquidity resulted in a $386.7 million increase in the average balances of short-term interest bearing accounts with a yield of 0.09%.
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The average balance of investment securities increased $103.9 million while yields declined 13 bps.
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Loan yields decreased 6 bps to 3.96% for the quarter. Excluding PPP loans, yields decreased 1 bp from the prior quarter.
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Total cost of deposits was 0.12% for the second quarter of 2021, down 2 bps from the prior quarter and down 11 bps from the same period in the prior year.
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The cost of interest-bearing liabilities for the three months ended June 30, 2021 was 0.29%, down 5 bps compared to the prior quarter of 0.34% and down 16 bps from the second quarter of 2020 of 0.45%.
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Cost of interest-bearing deposits decreased 3 bps from the prior quarter and decreased 16 bps from the same quarter in 2020.
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Credit Quality and Allowance for Credit Losses
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Nonperforming assets to total assets was 0.38% (0.39% excluding PPP loans) compared to 0.41% (0.43% excluding PPP loans) at March 31, 2021 and 0.27% (0.28% excluding PPP loans) at June 30, 2020.
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Provision expense for the three months ended June 30, 2021 was a net benefit of $5.2 million and net charge-offs were $1.3 million. The net provision benefit was $2.4 million more than the first quarter of 2021 compared to provision
expense of $18.8 million in the second quarter of 2020. The decrease in provision expense from the prior quarter and second quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an
improved economic forecast and lower levels of charge-offs.
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4
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The allowance for loan losses was $98.5 million or 1.31% (1.38% excluding PPP loans and related allowance) of total loans compared to 1.38% (1.48% excluding PPP loans and related allowance) at March 31, 2021 and 1.49% (1.59% excluding PPP
loans and related allowance) at June 30, 2020. The decrease in the level of allowance for credit losses was primarily due to the positive impact the forecasted improving economic conditions had on expected credit losses.
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The reserve for unfunded loan commitments decreased to $5.8 million at June 30, 2021 compared to the prior quarter at $5.9 million.
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Noninterest Income
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Total noninterest income, excluding securities gains (losses), was $39.1 million for the three months ended June 30, 2021, up $2.5 million from the prior quarter and up $4.3 million from the prior year quarter.
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Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2020.
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ATM and debit card fees were up compared to the prior quarter and the second quarter of 2020 due to increased volume and higher per transaction rates.
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Retirement plan administration fees were lower than the prior quarter driven by seasonal revenue fluctuations, and higher than the second quarter of 2020 driven by market performance and organic growth in relationships.
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Wealth management fees was higher than both the prior quarter and second quarter of 2020 driven by market performance and organic growth.
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Other noninterest income increased slightly from the prior quarter and decreased from the second quarter of 2020 due to lower loan swap fee income and lower mortgage banking income.
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Noninterest Expense
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Total noninterest expense for the second quarter of 2021 was up 5.2% from the previous quarter and up 9.3% from the second quarter of 2020.
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Salaries and benefits increased from the prior quarter and the second quarter of 2020 due to one additional day of payroll in the second quarter, annual merit pay increases and higher medical expenses, partially offset by lower stock-based
compensation.
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Occupancy expense is down from the prior quarter due to lower seasonal maintenance and utility expenses and comparable to the second quarter of 2020.
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Data processing and communications decreased from the prior quarter and were higher compared to the second quarter of 2020 driven by continued investments in digital platform solutions including a technology-enabled PPP platform.
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Professional fees and outside services increased from the prior quarter due to timing of initiatives, and were higher compared to the second quarter of 2020 as a result of certain projects paused during the COVID-19 pandemic.
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Equipment expense was higher than both the prior quarter and the second quarter of 2020 due to higher technology costs associated with several digital upgrades.
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5
Income Taxes
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The effective tax rate was 22.9% for the second quarter of 2021 compared to 21.9% for the first quarter of 2021 and 21.0% for the second quarter of 2020. The increase was due to a higher level of taxable income relative to total income.
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Capital
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Capital ratios remain strong with tangible common equity to tangible assets1 at 8.28%. Tangible book value per share2 grew 4% from the prior quarter and 10% from the prior year quarter to $21.50.
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June 30, 2021 CET1 capital ratio of 12.12%, leverage ratio of 9.40 % and total risk-based capital ratio of 15.78%.
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Dividend and Stock Repurchase
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The Board of Directors approved a third-quarter cash dividend of $0.28 per share at a meeting held today. The dividend, which represents a $0.01, or 3.7% increase, will be paid on September 15, 2021 to shareholders of record as of
September 1, 2021. The increased dividend represents a yield of 3.3% based upon the closing price of the Company’s stock on July 21, 2021.
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| ◾ |
The Company purchased 23,627 shares of common stock during the second quarter of 2021 at a weighted average price of $36.03 excluding commissions. As of June 30, 2021, there were 1,719,342 shares available for repurchase under this plan,
which expires on December 31, 2021.
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The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, July 27, 2021, to review second quarter 2021 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 $11.6 billion at June 30, 2021. 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 full-service retirement plan administration and recordkeeping 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.
6
Forward-Looking Statements
This news 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 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 novel
coronavirus, which causes COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.
7
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 and its impact 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, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not 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.
8
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NBT Bancorp Inc. and Subsidiaries
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Selected Financial Data
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(unaudited, dollars in thousands except per share data)
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2021
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2020
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2nd Q
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1st Q
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4th Q
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3rd Q
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2nd Q
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Profitability:
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Diluted earnings per share
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$
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0.92
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$
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0.91
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$
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0.78
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$
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0.80
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$
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0.56
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Weighted average diluted common shares outstanding
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43,792,940
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43,889,889
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43,973,971
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43,941,953
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43,928,344
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Return on average assets3
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1.39
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%
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1.46
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%
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1.24
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%
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1.29
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%
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0.94
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%
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Return on average equity3
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13.42
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%
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13.57
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%
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11.59
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%
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12.09
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%
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8.76
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%
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Return on average tangible common equity1 3
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17.93
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%
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18.24
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%
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15.71
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%
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16.51
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%
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12.14
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%
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Net interest margin1 3
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3.00
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%
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3.17
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%
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3.20
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%
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3.17
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%
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3.38
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%
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||||||||||
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6 Months Ended June 30,
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2021
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2020
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Profitability:
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Diluted earnings per share
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$
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1.83
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$
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0.80
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||||
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Weighted average diluted common shares outstanding
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43,839,060
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44,026,420
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Return on average assets3
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1.42
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%
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0.69
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%
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||||
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Return on average equity3
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13.49
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%
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6.23
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%
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||||
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Return on average tangible common equity1 3
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18.08
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%
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8.69
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%
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||||
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Net interest margin1 3
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3.08
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%
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3.45
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%
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||||
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2021
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2020
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|||||||||||||||||||
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2nd Q
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1st Q
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4th Q
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3rd Q
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2nd Q
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Balance sheet data:
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||||||||||||||||||||
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Short-term interest bearing accounts
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$
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883,758
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$
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972,195
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$
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512,686
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$
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450,291
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$
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528,228
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||||||||||
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Securities available for sale
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1,534,733
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1,387,028
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1,348,698
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1,197,925
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1,108,443
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|||||||||||||||
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Securities held to maturity
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622,351
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592,999
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616,560
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663,088
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599,164
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|||||||||||||||
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Net loans
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7,419,127
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7,528,459
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7,388,885
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7,446,143
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7,514,491
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|||||||||||||||
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Total assets
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11,574,947
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11,537,253
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10,932,906
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10,850,212
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10,847,184
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|||||||||||||||
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Total deposits
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9,785,257
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9,815,930
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9,081,692
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8,958,183
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8,815,891
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Total borrowings
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304,110
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308,766
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406,731
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446,737
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602,988
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|||||||||||||||
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Total liabilities
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10,349,891
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10,346,272
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9,745,288
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9,684,101
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9,704,532
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|||||||||||||||
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Stockholders' equity
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1,225,056
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1,190,981
|
1,187,618
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1,166,111
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1,142,652
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|||||||||||||||
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Capital:
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||||||||||||||||||||
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Equity to assets
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10.58
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%
|
10.32
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%
|
10.86
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%
|
10.75
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%
|
10.53
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%
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||||||||||
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Tangible equity ratio1
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8.28
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%
|
8.00
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%
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8.41
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%
|
8.27
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%
|
8.04
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%
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||||||||||
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Book value per share
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$
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28.19
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$
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27.43
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$
|
27.22
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$
|
26.74
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$
|
26.20
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||||||||||
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Tangible book value per share2
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$
|
21.50
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$
|
20.71
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$
|
20.52
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$
|
20.02
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$
|
19.46
|
||||||||||
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Leverage ratio
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9.40
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%
|
9.60
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%
|
9.56
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%
|
9.48
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%
|
9.44
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%
|
||||||||||
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Common equity tier 1 capital ratio
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12.12
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%
|
12.13
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%
|
11.84
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%
|
11.63
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%
|
11.34
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%
|
||||||||||
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Tier 1 capital ratio
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13.34
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%
|
13.38
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%
|
13.09
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%
|
12.88
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%
|
12.60
|
%
|
||||||||||
|
Total risk-based capital ratio
|
15.78
|
%
|
15.92
|
%
|
15.62
|
%
|
15.43
|
%
|
15.15
|
%
|
||||||||||
|
Common stock price (end of period)
|
$
|
35.97
|
$
|
39.90
|
$
|
32.10
|
$
|
26.82
|
$
|
30.06
|
||||||||||
9
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
|
Asset Quality and Consolidated Loan Balances
|
||||||||||||||||||||
|
(unaudited, dollars in thousands)
|
||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Asset quality:
|
||||||||||||||||||||
|
Nonaccrual loans
|
$
|
40,550
|
$
|
43,399
|
$
|
44,647
|
$
|
35,896
|
$
|
25,567
|
||||||||||
|
90 days past due and still accruing
|
2,575
|
2,155
|
3,149
|
2,579
|
2,057
|
|||||||||||||||
|
Total nonperforming loans
|
43,125
|
45,554
|
47,796
|
38,475
|
27,624
|
|||||||||||||||
|
Other real estate owned
|
798
|
1,318
|
1,458
|
1,605
|
1,783
|
|||||||||||||||
|
Total nonperforming assets
|
43,923
|
46,872
|
49,254
|
40,080
|
29,407
|
|||||||||||||||
|
Allowance for loan losses
|
98,500
|
105,000
|
110,000
|
114,500
|
113,500
|
|||||||||||||||
|
Asset quality ratios (total):
|
||||||||||||||||||||
|
Allowance for loan losses to total loans
|
1.31
|
%
|
1.38
|
%
|
1.47
|
%
|
1.51
|
%
|
1.49
|
%
|
||||||||||
|
Total nonperforming loans to total loans
|
0.57
|
%
|
0.60
|
%
|
0.64
|
%
|
0.51
|
%
|
0.36
|
%
|
||||||||||
|
Total nonperforming assets to total assets
|
0.38
|
%
|
0.41
|
%
|
0.45
|
%
|
0.37
|
%
|
0.27
|
%
|
||||||||||
|
Allowance for loan losses to total nonperforming loans
|
228.41
|
%
|
230.50
|
%
|
230.14
|
%
|
297.60
|
%
|
410.87
|
%
|
||||||||||
|
Past due loans to total loans4
|
0.26
|
%
|
0.22
|
%
|
0.37
|
%
|
0.26
|
%
|
0.30
|
%
|
||||||||||
|
Net charge-offs to average loans3
|
0.07
|
%
|
0.12
|
%
|
0.21
|
%
|
0.12
|
%
|
0.28
|
%
|
||||||||||
|
Asset quality ratios (excluding paycheck protection program):
|
||||||||||||||||||||
|
Allowance for loan losses to total loans
|
1.38
|
%
|
1.48
|
%
|
1.56
|
%
|
1.62
|
%
|
1.59
|
%
|
||||||||||
|
Total nonperforming loans to total loans
|
0.60
|
%
|
0.64
|
%
|
0.68
|
%
|
0.55
|
%
|
0.39
|
%
|
||||||||||
|
Total nonperforming assets to total assets
|
0.39
|
%
|
0.43
|
%
|
0.47
|
%
|
0.39
|
%
|
0.28
|
%
|
||||||||||
|
Allowance for loan losses to total nonperforming loans
|
228.36
|
%
|
230.44
|
%
|
230.10
|
%
|
297.53
|
%
|
410.78
|
%
|
||||||||||
|
Past due loans to total loans4
|
0.27
|
%
|
0.23
|
%
|
0.39
|
%
|
0.28
|
%
|
0.32
|
%
|
||||||||||
|
Net charge-offs to average loans3
|
0.07
|
%
|
0.13
|
%
|
0.22
|
%
|
0.13
|
%
|
0.30
|
%
|
||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Allowance for loan losses as a percentage of loans by segment:
|
||||||||||||||||||||
|
Commercial & industrial
|
1.11
|
%
|
1.20
|
%
|
1.34
|
%
|
1.34
|
%
|
1.25
|
%
|
||||||||||
|
Commercial real estate
|
1.26
|
%
|
1.48
|
%
|
1.49
|
%
|
1.57
|
%
|
1.56
|
%
|
||||||||||
|
Paycheck protection program
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
||||||||||
|
Residential real estate
|
0.98
|
%
|
1.03
|
%
|
1.07
|
%
|
1.21
|
%
|
1.13
|
%
|
||||||||||
|
Auto
|
0.76
|
%
|
0.78
|
%
|
0.93
|
%
|
0.92
|
%
|
0.99
|
%
|
||||||||||
|
Other consumer
|
4.27
|
%
|
4.34
|
%
|
4.55
|
%
|
4.66
|
%
|
5.01
|
%
|
||||||||||
|
Total
|
1.31
|
%
|
1.38
|
%
|
1.47
|
%
|
1.51
|
%
|
1.49
|
%
|
||||||||||
|
Total excluding PPP loans
|
1.38
|
%
|
1.48
|
%
|
1.56
|
%
|
1.62
|
%
|
1.59
|
%
|
||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
Loans by line of business:
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
|
Commercial
|
$
|
1,479,258
|
$
|
1,466,841
|
$
|
1,451,560
|
$
|
1,458,053
|
$
|
1,474,736
|
||||||||||
|
Commercial real estate
|
2,265,754
|
2,242,289
|
2,196,477
|
2,121,198
|
2,100,650
|
|||||||||||||||
|
Paycheck protection program
|
359,738
|
536,494
|
430,810
|
514,558
|
510,097
|
|||||||||||||||
|
Residential real estate mortgages
|
1,512,354
|
1,478,216
|
1,466,662
|
1,448,530
|
1,460,058
|
|||||||||||||||
|
Indirect auto
|
899,324
|
913,083
|
931,286
|
989,369
|
1,091,889
|
|||||||||||||||
|
Specialty lending
|
602,585
|
577,509
|
579,644
|
566,973
|
515,618
|
|||||||||||||||
|
Home equity
|
351,469
|
369,633
|
387,974
|
404,346
|
415,528
|
|||||||||||||||
|
Other consumer
|
47,145
|
49,394
|
54,472
|
57,616
|
59,415
|
|||||||||||||||
|
Total loans
|
$
|
7,517,627
|
$
|
7,633,459
|
$
|
7,498,885
|
$
|
7,560,643
|
$
|
7,627,991
|
||||||||||
|
PPP unamortized fees (dollars in millions)
|
$
|
12.6
|
$
|
14.2
|
$
|
6.9
|
$
|
11.3
|
$
|
14.6
|
||||||||||
10
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
(unaudited, dollars in thousands)
|
||||||||
|
Assets
|
June 30,
2021
|
December 31,
2020
|
||||||
|
Cash and due from banks
|
$
|
183,185
|
$
|
159,995
|
||||
|
Short-term interest bearing accounts
|
883,758
|
512,686
|
||||||
|
Equity securities, at fair value
|
32,806
|
30,737
|
||||||
|
Securities available for sale, at fair value
|
1,534,733
|
1,348,698
|
||||||
|
Securities held to maturity (fair value $632,954 and $636,827, respectively)
|
622,351
|
616,560
|
||||||
|
Federal Reserve and Federal Home Loan Bank stock
|
25,132
|
27,353
|
||||||
|
Loans held for sale
|
1,404
|
1,119
|
||||||
|
Loans
|
7,517,627
|
7,498,885
|
||||||
|
Less allowance for loan losses
|
98,500
|
110,000
|
||||||
|
Net loans
|
$
|
7,419,127
|
$
|
7,388,885
|
||||
|
Premises and equipment, net
|
72,482
|
74,206
|
||||||
|
Goodwill
|
280,541
|
280,541
|
||||||
|
Intangible assets, net
|
10,241
|
11,735
|
||||||
|
Bank owned life insurance
|
226,507
|
186,434
|
||||||
|
Other assets
|
282,680
|
293,957
|
||||||
|
Total assets
|
$
|
11,574,947
|
$
|
10,932,906
|
||||
|
Liabilities and stockholders' equity
|
||||||||
|
Demand (noninterest bearing)
|
$
|
3,582,705
|
$
|
3,241,123
|
||||
|
Savings, NOW and money market
|
5,633,523
|
5,207,090
|
||||||
|
Time
|
569,029
|
633,479
|
||||||
|
Total deposits
|
$
|
9,785,257
|
$
|
9,081,692
|
||||
|
Short-term borrowings
|
90,598
|
168,386
|
||||||
|
Long-term debt
|
14,045
|
39,097
|
||||||
|
Subordinated debt, net
|
98,271
|
98,052
|
||||||
|
Junior subordinated debt
|
101,196
|
101,196
|
||||||
|
Other liabilities
|
260,524
|
256,865
|
||||||
|
Total liabilities
|
$
|
10,349,891
|
$
|
9,745,288
|
||||
|
Total stockholders' equity
|
$
|
1,225,056
|
$
|
1,187,618
|
||||
|
Total liabilities and stockholders' equity
|
$
|
11,574,947
|
$
|
10,932,906
|
||||
11
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||
|
Consolidated Statements of Income
|
||||||||||||||||
|
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
|
Interest, fee and dividend income
|
||||||||||||||||
|
Interest and fees on loans
|
$
|
74,795
|
$
|
77,270
|
$
|
149,888
|
$
|
155,998
|
||||||||
|
Securities available for sale
|
5,762
|
5,600
|
11,306
|
11,353
|
||||||||||||
|
Securities held to maturity
|
3,096
|
3,926
|
6,478
|
8,017
|
||||||||||||
|
Other
|
391
|
650
|
682
|
1,479
|
||||||||||||
|
Total interest, fee and dividend income
|
$
|
84,044
|
$
|
87,446
|
$
|
168,354
|
$
|
176,847
|
||||||||
|
Interest expense
|
||||||||||||||||
|
Deposits
|
$
|
2,862
|
$
|
4,812
|
$
|
6,034
|
$
|
13,916
|
||||||||
|
Short-term borrowings
|
32
|
972
|
102
|
2,769
|
||||||||||||
|
Long-term debt
|
88
|
393
|
212
|
786
|
||||||||||||
|
Subordinated debt
|
1,359
|
128
|
2,718
|
128
|
||||||||||||
|
Junior subordinated debt
|
525
|
695
|
1,055
|
1,621
|
||||||||||||
|
Total interest expense
|
$
|
4,866
|
$
|
7,000
|
$
|
10,121
|
$
|
19,220
|
||||||||
|
Net interest income
|
$
|
79,178
|
$
|
80,446
|
$
|
158,233
|
$
|
157,627
|
||||||||
|
Provision for loan losses
|
(5,216
|
)
|
18,840
|
(8,012
|
)
|
48,480
|
||||||||||
|
Net interest income after provision for loan losses
|
$
|
84,394
|
$
|
61,606
|
$
|
166,245
|
$
|
109,147
|
||||||||
|
Noninterest income
|
||||||||||||||||
|
Service charges on deposit accounts
|
$
|
3,028
|
$
|
2,529
|
$
|
6,055
|
$
|
6,526
|
||||||||
|
ATM and debit card fees
|
8,309
|
6,136
|
15,171
|
11,990
|
||||||||||||
|
Retirement plan administration fees
|
9,779
|
9,214
|
19,877
|
17,155
|
||||||||||||
|
Wealth management fees
|
8,406
|
6,823
|
16,316
|
14,096
|
||||||||||||
|
Insurance services
|
3,508
|
3,292
|
6,969
|
7,561
|
||||||||||||
|
Bank owned life insurance income
|
1,659
|
1,381
|
3,040
|
2,755
|
||||||||||||
|
Net securities gains (losses)
|
201
|
180
|
668
|
(632
|
)
|
|||||||||||
|
Other
|
4,426
|
5,456
|
8,258
|
10,983
|
||||||||||||
|
Total noninterest income
|
$
|
39,316
|
$
|
35,011
|
$
|
76,354
|
$
|
70,434
|
||||||||
|
Noninterest expense
|
||||||||||||||||
|
Salaries and employee benefits
|
$
|
42,671
|
$
|
39,717
|
$
|
84,272
|
$
|
80,467
|
||||||||
|
Occupancy
|
5,291
|
5,065
|
11,164
|
11,060
|
||||||||||||
|
Data processing and communications
|
4,427
|
4,079
|
9,158
|
8,312
|
||||||||||||
|
Professional fees and outside services
|
4,030
|
3,403
|
7,619
|
7,300
|
||||||||||||
|
Equipment
|
5,493
|
4,779
|
10,670
|
9,421
|
||||||||||||
|
Office supplies and postage
|
1,615
|
1,455
|
3,114
|
3,091
|
||||||||||||
|
FDIC expense
|
663
|
993
|
1,471
|
1,304
|
||||||||||||
|
Advertising
|
468
|
322
|
919
|
931
|
||||||||||||
|
Amortization of intangible assets
|
682
|
883
|
1,494
|
1,717
|
||||||||||||
|
Loan collection and other real estate owned, net
|
663
|
728
|
1,253
|
1,745
|
||||||||||||
|
Other
|
5,416
|
3,916
|
8,173
|
10,873
|
||||||||||||
|
Total noninterest expense
|
$
|
71,419
|
$
|
65,340
|
$
|
139,307
|
$
|
136,221
|
||||||||
|
Income before income tax expense
|
$
|
52,291
|
$
|
31,277
|
$
|
103,292
|
$
|
43,360
|
||||||||
|
Income tax expense
|
11,995
|
6,564
|
23,150
|
8,279
|
||||||||||||
|
Net income
|
$
|
40,296
|
$
|
24,713
|
$
|
80,142
|
$
|
35,081
|
||||||||
|
Earnings Per Share
|
||||||||||||||||
|
Basic
|
$
|
0.93
|
$
|
0.57
|
$
|
1.84
|
$
|
0.80
|
||||||||
|
Diluted
|
$
|
0.92
|
$
|
0.56
|
$
|
1.83
|
$
|
0.80
|
||||||||
12
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
|
Quarterly Consolidated Statements of Income
|
||||||||||||||||||||
|
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Interest, fee and dividend income
|
||||||||||||||||||||
|
Interest and fees on loans
|
$
|
74,795
|
$
|
75,093
|
$
|
76,863
|
$
|
74,998
|
$
|
77,270
|
||||||||||
|
Securities available for sale
|
5,762
|
5,544
|
5,478
|
5,603
|
5,600
|
|||||||||||||||
|
Securities held to maturity
|
3,096
|
3,382
|
3,532
|
3,734
|
3,926
|
|||||||||||||||
|
Other
|
391
|
291
|
568
|
659
|
650
|
|||||||||||||||
|
Total interest, fee and dividend income
|
$
|
84,044
|
$
|
84,310
|
$
|
86,441
|
$
|
84,994
|
$
|
87,446
|
||||||||||
|
Interest expense
|
||||||||||||||||||||
|
Deposits
|
$
|
2,862
|
$
|
3,172
|
$
|
3,887
|
$
|
4,267
|
$
|
4,812
|
||||||||||
|
Short-term borrowings
|
32
|
70
|
193
|
446
|
972
|
|||||||||||||||
|
Long-term debt
|
88
|
124
|
369
|
398
|
393
|
|||||||||||||||
|
Subordinated debt
|
1,359
|
1,359
|
1,339
|
1,375
|
128
|
|||||||||||||||
|
Junior subordinated debt
|
525
|
530
|
545
|
565
|
695
|
|||||||||||||||
|
Total interest expense
|
$
|
4,866
|
$
|
5,255
|
$
|
6,333
|
$
|
7,051
|
$
|
7,000
|
||||||||||
|
Net interest income
|
$
|
79,178
|
$
|
79,055
|
$
|
80,108
|
$
|
77,943
|
$
|
80,446
|
||||||||||
|
Provision for loan losses
|
(5,216
|
)
|
(2,796
|
)
|
(607
|
)
|
3,261
|
18,840
|
||||||||||||
|
Net interest income after provision for loan losses
|
$
|
84,394
|
$
|
81,851
|
$
|
80,715
|
$
|
74,682
|
$
|
61,606
|
||||||||||
|
Noninterest income
|
||||||||||||||||||||
|
Service charges on deposit accounts
|
$
|
3,028
|
$
|
3,027
|
$
|
3,588
|
$
|
3,087
|
$
|
2,529
|
||||||||||
|
ATM and debit card fees
|
8,309
|
6,862
|
6,776
|
7,194
|
6,136
|
|||||||||||||||
|
Retirement plan administration fees
|
9,779
|
10,098
|
9,011
|
9,685
|
9,214
|
|||||||||||||||
|
Wealth management fees
|
8,406
|
7,910
|
7,456
|
7,695
|
6,823
|
|||||||||||||||
|
Insurance services
|
3,508
|
3,461
|
3,454
|
3,742
|
3,292
|
|||||||||||||||
|
Bank owned life insurance income
|
1,659
|
1,381
|
1,733
|
1,255
|
1,381
|
|||||||||||||||
|
Net securities gains
|
201
|
467
|
160
|
84
|
180
|
|||||||||||||||
|
Other
|
4,426
|
3,832
|
5,937
|
4,985
|
5,456
|
|||||||||||||||
|
Total noninterest income
|
$
|
39,316
|
$
|
37,038
|
$
|
38,115
|
$
|
37,727
|
$
|
35,011
|
||||||||||
|
Noninterest expense
|
||||||||||||||||||||
|
Salaries and employee benefits
|
$
|
42,671
|
$
|
41,601
|
$
|
41,016
|
$
|
40,451
|
$
|
39,717
|
||||||||||
|
Occupancy
|
5,291
|
5,873
|
5,280
|
5,294
|
5,065
|
|||||||||||||||
|
Data processing and communications
|
4,427
|
4,731
|
4,157
|
4,058
|
4,079
|
|||||||||||||||
|
Professional fees and outside services
|
4,030
|
3,589
|
4,388
|
3,394
|
3,403
|
|||||||||||||||
|
Equipment
|
5,493
|
5,177
|
5,395
|
5,073
|
4,779
|
|||||||||||||||
|
Office supplies and postage
|
1,615
|
1,499
|
1,517
|
1,530
|
1,455
|
|||||||||||||||
|
FDIC expense
|
663
|
808
|
739
|
645
|
993
|
|||||||||||||||
|
Advertising
|
468
|
451
|
827
|
530
|
322
|
|||||||||||||||
|
Amortization of intangible assets
|
682
|
812
|
822
|
856
|
883
|
|||||||||||||||
|
Loan collection and other real estate owned, net
|
663
|
590
|
930
|
620
|
728
|
|||||||||||||||
|
Other
|
5,416
|
2,757
|
10,133
|
3,857
|
3,916
|
|||||||||||||||
|
Total noninterest expense
|
$
|
71,419
|
$
|
67,888
|
$
|
75,204
|
$
|
66,308
|
$
|
65,340
|
||||||||||
|
Income before income tax expense
|
$
|
52,291
|
$
|
51,001
|
$
|
43,626
|
$
|
46,101
|
$
|
31,277
|
||||||||||
|
Income tax expense
|
11,995
|
11,155
|
9,432
|
10,988
|
6,564
|
|||||||||||||||
|
Net income
|
$
|
40,296
|
$
|
39,846
|
$
|
34,194
|
$
|
35,113
|
$
|
24,713
|
||||||||||
|
Earnings Per Share
|
||||||||||||||||||||
|
Basic
|
$
|
0.93
|
$
|
0.91
|
$
|
0.78
|
$
|
0.80
|
$
|
0.57
|
||||||||||
|
Diluted
|
$
|
0.92
|
$
|
0.91
|
$
|
0.78
|
$
|
0.80
|
$
|
0.56
|
||||||||||
13
|
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 - 2021
|
Q1 - 2021
|
Q4 - 2020
|
Q3 - 2020
|
Q2 - 2020
|
||||||||||||||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||||||||||||||||||
|
Short-term interest bearing accounts
|
$
|
974,034
|
0.09
|
%
|
$
|
587,358
|
0.09
|
%
|
$
|
552,529
|
0.11
|
%
|
$
|
477,946
|
0.11
|
%
|
$
|
380,260
|
0.10
|
%
|
||||||||||||||||||||
|
Securities available for sale1 5
|
1,453,068
|
1.59
|
%
|
1,346,380
|
1.67
|
%
|
1,230,411
|
1.77
|
%
|
1,137,604
|
1.96
|
%
|
985,561
|
2.29
|
%
|
|||||||||||||||||||||||||
|
Securities held to maturity1 5
|
604,582
|
2.23
|
%
|
607,407
|
2.43
|
%
|
640,422
|
2.36
|
%
|
621,812
|
2.56
|
%
|
613,899
|
2.75
|
%
|
|||||||||||||||||||||||||
|
Investment in FRB and FHLB Banks
|
25,115
|
2.67
|
%
|
25,606
|
2.45
|
%
|
28,275
|
5.94
|
%
|
29,720
|
7.08
|
%
|
36,604
|
6.09
|
%
|
|||||||||||||||||||||||||
|
Loans1 6
|
7,574,272
|
3.96
|
%
|
7,574,337
|
4.02
|
%
|
7,533,953
|
4.06
|
%
|
7,559,218
|
3.95
|
%
|
7,589,032
|
4.10
|
%
|
|||||||||||||||||||||||||
|
Total interest earning assets
|
$
|
10,631,071
|
3.18
|
%
|
$
|
10,141,088
|
3.38
|
%
|
$
|
9,985,590
|
3.46
|
%
|
$
|
9,826,300
|
3.45
|
%
|
$
|
9,605,356
|
3.68
|
%
|
||||||||||||||||||||
|
Other assets
|
971,681
|
960,994
|
954,123
|
967,194
|
961,807
|
|||||||||||||||||||||||||||||||||||
|
Total assets
|
$
|
11,602,752
|
$
|
11,102,082
|
$
|
10,939,713
|
$
|
10,793,494
|
$
|
10,567,163
|
||||||||||||||||||||||||||||||
|
Liabilities and stockholders' equity
|
||||||||||||||||||||||||||||||||||||||||
|
Money market deposit accounts
|
$
|
2,605,767
|
0.21
|
%
|
$
|
2,484,120
|
0.23
|
%
|
$
|
2,455,510
|
0.27
|
%
|
$
|
2,364,606
|
0.28
|
%
|
$
|
2,360,407
|
0.29
|
%
|
||||||||||||||||||||
|
NOW deposit accounts
|
1,454,751
|
0.05
|
%
|
1,358,955
|
0.05
|
%
|
1,315,370
|
0.05
|
%
|
1,207,064
|
0.05
|
%
|
1,167,486
|
0.04
|
%
|
|||||||||||||||||||||||||
|
Savings deposits
|
1,660,722
|
0.05
|
%
|
1,547,983
|
0.05
|
%
|
1,465,562
|
0.05
|
%
|
1,447,021
|
0.05
|
%
|
1,383,495
|
0.05
|
%
|
|||||||||||||||||||||||||
|
Time deposits
|
591,147
|
0.75
|
%
|
615,343
|
0.93
|
%
|
645,288
|
1.15
|
%
|
684,708
|
1.31
|
%
|
760,803
|
1.48
|
%
|
|||||||||||||||||||||||||
|
Total interest bearing deposits
|
$
|
6,312,387
|
0.18
|
%
|
$
|
6,006,401
|
0.21
|
%
|
$
|
5,881,730
|
0.26
|
%
|
$
|
5,703,399
|
0.30
|
%
|
$
|
5,672,191
|
0.34
|
%
|
||||||||||||||||||||
|
Short-term borrowings
|
95,226
|
0.13
|
%
|
115,182
|
0.25
|
%
|
175,597
|
0.44
|
%
|
277,890
|
0.64
|
%
|
427,004
|
0.92
|
%
|
|||||||||||||||||||||||||
|
Long-term debt
|
14,053
|
2.51
|
%
|
19,913
|
2.53
|
%
|
59,488
|
2.47
|
%
|
64,137
|
2.47
|
%
|
64,165
|
2.46
|
%
|
|||||||||||||||||||||||||
|
Subordinated debt, net
|
98,204
|
5.55
|
%
|
98,095
|
5.62
|
%
|
97,984
|
5.44
|
%
|
97,934
|
5.59
|
%
|
8,633
|
5.96
|
%
|
|||||||||||||||||||||||||
|
Junior subordinated debt
|
101,196
|
2.08
|
%
|
101,196
|
2.12
|
%
|
101,196
|
2.14
|
%
|
101,196
|
2.22
|
%
|
101,196
|
2.76
|
%
|
|||||||||||||||||||||||||
|
Total interest bearing liabilities
|
$
|
6,621,066
|
0.29
|
%
|
$
|
6,340,787
|
0.34
|
%
|
$
|
6,315,995
|
0.40
|
%
|
$
|
6,244,556
|
0.45
|
%
|
$
|
6,273,189
|
0.45
|
%
|
||||||||||||||||||||
|
Demand deposits
|
3,542,176
|
3,319,024
|
3,178,410
|
3,111,617
|
2,887,545
|
|||||||||||||||||||||||||||||||||||
|
Other liabilities
|
235,536
|
250,991
|
271,206
|
282,265
|
271,635
|
|||||||||||||||||||||||||||||||||||
|
Stockholders' equity
|
1,203,974
|
1,191,280
|
1,174,102
|
1,155,056
|
1,134,794
|
|||||||||||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
11,602,752
|
$
|
11,102,082
|
$
|
10,939,713
|
$
|
10,793,494
|
$
|
10,567,163
|
||||||||||||||||||||||||||||||
|
Interest rate spread
|
2.89
|
%
|
3.04
|
%
|
3.06
|
%
|
3.00
|
%
|
3.23
|
%
|
||||||||||||||||||||||||||||||
|
Net interest margin (FTE)1
|
3.00
|
%
|
3.17
|
%
|
3.20
|
%
|
3.17
|
%
|
3.38
|
%
|
||||||||||||||||||||||||||||||
14
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||||||
|
Average Year-to-Date Balance Sheets
|
||||||||||||||||||||||||
|
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Yield/
Rates
|
Average
Balance
|
Interest
|
Yield/
Rates
|
|||||||||||||||||||
|
Six Months Ended June 30,
|
2021
|
2020
|
||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Short-term interest bearing accounts
|
$
|
781,764
|
$
|
360
|
0.09
|
%
|
$
|
227,478
|
$
|
335
|
0.30
|
%
|
||||||||||||
|
Securities available for sale1 5
|
1,400,019
|
11,306
|
1.63
|
%
|
974,044
|
11,353
|
2.34
|
%
|
||||||||||||||||
|
Securities held to maturity1 5
|
605,987
|
7,004
|
2.33
|
%
|
618,149
|
8,554
|
2.78
|
%
|
||||||||||||||||
|
Investment in FRB and FHLB Banks
|
25,359
|
322
|
2.56
|
%
|
38,194
|
1,144
|
6.02
|
%
|
||||||||||||||||
|
Loans1 6
|
7,574,304
|
149,963
|
3.99
|
%
|
7,376,072
|
156,119
|
4.26
|
%
|
||||||||||||||||
|
Total interest earning assets
|
$
|
10,387,433
|
$
|
168,955
|
3.28
|
%
|
$
|
9,233,937
|
$
|
177,505
|
3.87
|
%
|
||||||||||||
|
Other assets
|
966,367
|
923,689
|
||||||||||||||||||||||
|
Total assets
|
$
|
11,353,800
|
$
|
10,157,626
|
||||||||||||||||||||
|
Liabilities and stockholders' equity
|
||||||||||||||||||||||||
|
Money market deposit accounts
|
$
|
2,545,280
|
$
|
2,755
|
0.22
|
%
|
$
|
2,230,857
|
$
|
6,965
|
0.63
|
%
|
||||||||||||
|
NOW deposit accounts
|
1,407,118
|
348
|
0.05
|
%
|
1,126,845
|
404
|
0.07
|
%
|
||||||||||||||||
|
Savings deposits
|
1,604,664
|
406
|
0.05
|
%
|
1,329,890
|
360
|
0.05
|
%
|
||||||||||||||||
|
Time deposits
|
603,178
|
2,525
|
0.84
|
%
|
801,896
|
6,187
|
1.55
|
%
|
||||||||||||||||
|
Total interest bearing deposits
|
$
|
6,160,240
|
$
|
6,034
|
0.20
|
%
|
$
|
5,489,488
|
$
|
13,916
|
0.51
|
%
|
||||||||||||
|
Short-term borrowings
|
105,149
|
102
|
0.20
|
%
|
480,261
|
2,769
|
1.16
|
%
|
||||||||||||||||
|
Long-term debt
|
16,967
|
212
|
2.52
|
%
|
64,179
|
786
|
2.46
|
%
|
||||||||||||||||
|
Subordinated debt, net
|
98,149
|
2,718
|
5.58
|
%
|
4,316
|
128
|
5.96
|
%
|
||||||||||||||||
|
Junior subordinated debt
|
101,196
|
1,055
|
2.10
|
%
|
101,196
|
1,621
|
3.22
|
%
|
||||||||||||||||
|
Total interest bearing liabilities
|
$
|
6,481,701
|
$
|
10,121
|
0.31
|
%
|
$
|
6,139,440
|
$
|
19,220
|
0.63
|
%
|
||||||||||||
|
Demand deposits
|
3,431,216
|
2,642,926
|
||||||||||||||||||||||
|
Other liabilities
|
243,221
|
243,066
|
||||||||||||||||||||||
|
Stockholders' equity
|
1,197,662
|
1,132,194
|
||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
11,353,800
|
$
|
10,157,626
|
||||||||||||||||||||
|
Net interest income (FTE)1
|
$
|
158,834
|
$
|
158,285
|
||||||||||||||||||||
|
Interest rate spread
|
2.97
|
%
|
3.24
|
%
|
||||||||||||||||||||
|
Net interest margin (FTE)1
|
3.08
|
%
|
3.45
|
%
|
||||||||||||||||||||
|
Taxable equivalent adjustment
|
$
|
601
|
$
|
658
|
||||||||||||||||||||
|
Net interest income
|
$
|
158,233
|
$
|
157,627
|
||||||||||||||||||||
15
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)
|
||||||||||||||||||||
|
Pre-provision net revenue ("PPNR")
|
2021
|
2020
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Net income
|
$
|
40,296
|
$
|
39,846
|
$
|
34,194
|
$
|
35,113
|
$
|
24,713
|
||||||||||
|
Income tax expense
|
11,995
|
11,155
|
9,432
|
10,988
|
6,564
|
|||||||||||||||
|
Provision for loan losses
|
(5,216
|
)
|
(2,796
|
)
|
(607
|
)
|
3,261
|
18,840
|
||||||||||||
|
FTE adjustment
|
299
|
302
|
318
|
325
|
329
|
|||||||||||||||
|
Net securities (gains)
|
(201
|
)
|
(467
|
)
|
(160
|
)
|
(84
|
)
|
(180
|
)
|
||||||||||
|
Provision for unfunded loan commitments reserve
|
(80
|
)
|
(500
|
)
|
900
|
-
|
(200
|
)
|
||||||||||||
|
Nonrecurring expense
|
1,880
|
-
|
4,100
|
-
|
650
|
|||||||||||||||
|
PPNR
|
$
|
48,973
|
$
|
47,540
|
$
|
48,177
|
$
|
49,603
|
$
|
50,716
|
||||||||||
|
Average Assets
|
$
|
11,602,752
|
$
|
11,102,082
|
$
|
10,939,713
|
$
|
10,793,494
|
$
|
10,567,163
|
||||||||||
|
Return on Average Assets3
|
1.39
|
%
|
1.46
|
%
|
1.24
|
%
|
1.29
|
%
|
0.94
|
%
|
||||||||||
|
PPNR Return on Average Assets3
|
1.69
|
%
|
1.74
|
%
|
1.75
|
%
|
1.83
|
%
|
1.93
|
%
|
||||||||||
|
6 Months Ended June 30,
|
||||||||
|
2021
|
2020
|
|||||||
|
Net income
|
$
|
80,142
|
$
|
35,081
|
||||
|
Income tax expense
|
23,150
|
8,279
|
||||||
|
Provision for loan losses
|
(8,012
|
)
|
48,480
|
|||||
|
FTE adjustment
|
601
|
658
|
||||||
|
Net securities (gains) losses
|
(668
|
)
|
632
|
|||||
|
Provision for unfunded loan commitments reserve
|
(580
|
)
|
1,800
|
|||||
|
Nonrecurring expense
|
1,880
|
650
|
||||||
|
PPNR
|
$
|
96,513
|
$
|
95,580
|
||||
|
Average Assets
|
$
|
11,353,800
|
$
|
10,157,626
|
||||
|
Return on Average Assets3
|
1.42
|
%
|
0.69
|
%
|
||||
|
PPNR Return on Average Assets3
|
1.71
|
%
|
1.89
|
%
|
||||
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
|
2021
|
2020
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Net interest income
|
$
|
79,178
|
$
|
79,055
|
$
|
80,108
|
$
|
77,943
|
$
|
80,446
|
||||||||||
|
Add: FTE adjustment
|
299
|
302
|
318
|
325
|
329
|
|||||||||||||||
|
Net interest income (FTE)
|
$
|
79,477
|
$
|
79,357
|
$
|
80,426
|
$
|
78,268
|
$
|
80,775
|
||||||||||
|
Average earning assets
|
$
|
10,631,071
|
$
|
10,141,088
|
$
|
9,985,590
|
$
|
9,826,300
|
$
|
9,605,356
|
||||||||||
|
Net interest margin (FTE)3
|
3.00
|
%
|
3.17
|
%
|
3.20
|
%
|
3.17
|
%
|
3.38
|
%
|
||||||||||
|
6 Months Ended June 30,
|
||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
Net interest income
|
$
|
158,233
|
$
|
157,627
|
||||||||||||||||
|
Add: FTE adjustment
|
601
|
658
|
||||||||||||||||||
|
Net interest income (FTE)
|
$
|
158,834
|
$
|
158,285
|
||||||||||||||||
|
Average earning assets
|
$
|
10,387,433
|
$
|
9,233,937
|
||||||||||||||||
|
Net interest margin (FTE)3
|
3.08
|
%
|
3.45
|
%
|
||||||||||||||||
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.
16
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)
|
||||||||||||||||||||
|
Tangible equity to tangible assets
|
2021
|
2020
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Total equity
|
$
|
1,225,056
|
$
|
1,190,981
|
$
|
1,187,618
|
$
|
1,166,111
|
$
|
1,142,652
|
||||||||||
|
Intangible assets
|
290,782
|
291,464
|
292,276
|
293,098
|
293,954
|
|||||||||||||||
|
Total assets
|
$
|
11,574,947
|
$
|
11,537,253
|
$
|
10,932,906
|
$
|
10,850,212
|
$
|
10,847,184
|
||||||||||
|
Tangible equity to tangible assets
|
8.28
|
%
|
8.00
|
%
|
8.41
|
%
|
8.27
|
%
|
8.04
|
%
|
||||||||||
|
Return on average tangible common equity
|
2021
|
2020
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
||||||||||||||||
|
Net income
|
$
|
40,296
|
$
|
39,846
|
$
|
34,194
|
$
|
35,113
|
$
|
24,713
|
||||||||||
|
Amortization of intangible assets (net of tax)
|
512
|
609
|
617
|
642
|
662
|
|||||||||||||||
|
Net income, excluding intangibles amortization
|
$
|
40,808
|
$
|
40,455
|
$
|
34,811
|
$
|
35,755
|
$
|
25,375
|
||||||||||
|
Average stockholders' equity
|
$
|
1,203,974
|
$
|
1,191,280
|
$
|
1,174,102
|
$
|
1,155,056
|
$
|
1,134,794
|
||||||||||
|
Less: average goodwill and other intangibles
|
291,133
|
291,921
|
292,725
|
293,572
|
294,423
|
|||||||||||||||
|
Average tangible common equity
|
$
|
912,841
|
$
|
899,359
|
$
|
881,377
|
$
|
861,484
|
$
|
840,371
|
||||||||||
|
Return on average tangible common equity3
|
17.93
|
%
|
18.24
|
%
|
15.71
|
%
|
16.51
|
%
|
12.14
|
%
|
||||||||||
|
6 Months Ended June 30,
|
||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||
|
Net income
|
$
|
80,142
|
$
|
35,081
|
||||||||||||||||
|
Amortization of intangible assets (net of tax)
|
1,121
|
1,288
|
||||||||||||||||||
|
Net income, excluding intangibles amortization
|
$
|
81,263
|
$
|
36,369
|
||||||||||||||||
|
Average stockholders' equity
|
$
|
1,197,662
|
$
|
1,132,194
|
||||||||||||||||
|
Less: average goodwill and other intangibles
|
291,525
|
290,411
|
||||||||||||||||||
|
Average tangible common equity
|
$
|
906,137
|
$
|
841,783
|
||||||||||||||||
|
Return on average tangible common equity3
|
18.08
|
%
|
8.69
|
%
|
||||||||||||||||
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.