|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
PART I
|
||
ITEM 1.
|
3
|
|
ITEM 1A.
|
16 | |
ITEM 1B.
|
23 | |
ITEM 2.
|
24 | |
ITEM 3.
|
24 | |
ITEM 4.
|
24 | |
PART II
|
||
ITEM 5.
|
24 | |
ITEM 6.
|
25 | |
ITEM 7.
|
26 | |
ITEM 7A.
|
44 | |
ITEM 8.
|
45 | |
45 | ||
47 | ||
48 | ||
49 | ||
50 | ||
51 | ||
53 | ||
ITEM 9.
|
95 | |
ITEM 9A.
|
95 | |
ITEM 9B.
|
97 | |
ITEM 9C.
|
97 | |
PART III
|
||
ITEM 10.
|
97 | |
ITEM 11.
|
97 | |
ITEM 12.
|
97 | |
ITEM 13.
|
97 | |
ITEM 14.
|
97 | |
PART IV
|
||
ITEM 15.
|
98 | |
ITEM 16.
|
100 | |
101 |
County
|
State
|
Deposits
in Thousands
|
Market Share
|
Market
Rank
|
Number of
Branches*
|
Number of
ATMs*
|
||||||||||||||||
Chenango
|
NY
|
$
|
815,939
|
92.59
|
%
|
1
|
11
|
12
|
||||||||||||||
Fulton
|
NY
|
652,866
|
67.56
|
%
|
1
|
5
|
6
|
|||||||||||||||
Schoharie
|
NY
|
307,266
|
48.36
|
%
|
1
|
4
|
4
|
|||||||||||||||
Montgomery
|
NY
|
436,892
|
45.24
|
%
|
1
|
5
|
4
|
|||||||||||||||
Hamilton
|
NY
|
56,988
|
43.94
|
%
|
2
|
1
|
1
|
|||||||||||||||
Cortland
|
NY
|
367,577
|
38.89
|
%
|
1
|
4
|
6
|
|||||||||||||||
Otsego
|
NY
|
513,121
|
37.62
|
%
|
1
|
8
|
11
|
|||||||||||||||
Essex
|
NY
|
329,672
|
32.77
|
%
|
1
|
3
|
4
|
|||||||||||||||
Madison
|
NY
|
391,727
|
31.86
|
%
|
2
|
5
|
7
|
|||||||||||||||
Delaware
|
NY
|
347,797
|
28.68
|
%
|
3
|
5
|
5
|
|||||||||||||||
Susquehanna
|
PA
|
273,215
|
19.73
|
%
|
2
|
5
|
7
|
|||||||||||||||
Broome
|
NY
|
580,368
|
15.61
|
%
|
2
|
7
|
9
|
|||||||||||||||
Oneida
|
NY
|
704,944
|
14.88
|
%
|
2
|
6
|
8
|
|||||||||||||||
St. Lawrence
|
NY
|
229,331
|
14.44
|
%
|
3
|
4
|
4
|
|||||||||||||||
Pike
|
PA
|
128,742
|
12.82
|
%
|
4
|
2
|
2
|
|||||||||||||||
Oswego
|
NY
|
197,469
|
10.77
|
%
|
4
|
4
|
5
|
|||||||||||||||
Herkimer
|
NY
|
75,148
|
9.22
|
%
|
5
|
1
|
1
|
|||||||||||||||
Wayne
|
PA
|
176,403
|
9.12
|
%
|
4
|
3
|
4
|
|||||||||||||||
Tioga
|
NY
|
48,715
|
8.72
|
%
|
4
|
1
|
1
|
|||||||||||||||
Lackawanna
|
PA
|
620,344
|
7.67
|
%
|
6
|
10
|
12
|
|||||||||||||||
Schenectady
|
NY
|
288,903
|
7.54
|
%
|
5
|
2
|
2
|
|||||||||||||||
Clinton
|
NY
|
135,721
|
7.16
|
%
|
5
|
2
|
2
|
|||||||||||||||
Franklin
|
NY
|
43,230
|
6.02
|
%
|
4
|
1
|
1
|
|||||||||||||||
Onondaga
|
NY
|
695,914
|
5.30
|
%
|
6
|
10
|
10
|
|||||||||||||||
Saratoga
|
NY
|
292,090
|
4.37
|
%
|
8
|
3
|
4
|
|||||||||||||||
Warren
|
NY
|
113,835
|
3.98
|
%
|
4
|
2
|
2
|
|||||||||||||||
Berkshire
|
MA
|
181,641
|
3.70
|
%
|
7
|
5
|
5
|
|||||||||||||||
Monroe
|
PA
|
118,254
|
3.04
|
%
|
8
|
3
|
3
|
|||||||||||||||
Chittenden
|
VT
|
182,948
|
2.99
|
%
|
7
|
3
|
4
|
|||||||||||||||
Cheshire
|
NH
|
61,989
|
2.29
|
%
|
7
|
1
|
1
|
|||||||||||||||
Albany
|
NY
|
371,414
|
1.69
|
%
|
9
|
4
|
5
|
|||||||||||||||
Greene
|
NY
|
46,485
|
1.53
|
%
|
5
|
1
|
1
|
|||||||||||||||
Luzerne
|
PA
|
120,150
|
1.48
|
%
|
12
|
2
|
2
|
|||||||||||||||
Hillsborough
|
NH
|
147,083
|
0.84
|
%
|
12
|
2
|
2
|
|||||||||||||||
Rensselaer
|
NY
|
18,311
|
0.67
|
%
|
11
|
1
|
1
|
|||||||||||||||
Cumberland
|
ME
|
35,531
|
0.24
|
%
|
16
|
1
|
1
|
|||||||||||||||
Hartford
|
CT
|
36,894
|
0.08
|
%
|
21
|
2
|
1
|
|||||||||||||||
Merrimack
|
NH
|
2,315
|
0.04
|
%
|
16
|
1
|
1
|
|||||||||||||||
$
|
10,147,232
|
140
|
161
|
● |
4.5% CET1 to risk-weighted assets;
|
● |
6.0% Tier 1 capital (CET1 plus Additional Tier 1 capital) to risk-weighted assets;
|
● |
8.0% Total capital (Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
|
● |
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).
|
● |
the Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
● |
the Equal Credit Opportunity Act (“ECOA”), prohibiting discrimination in connection with the extension of credit;
|
● |
the Home Mortgage Disclosure Act (“HMDA”), requiring home mortgage lenders, including the Bank, to make available to the public expanded information regarding the pricing of home mortgage loans, including the
“rate spread” between the annual percentage rate and the average prime offer rate for mortgage loans of a comparable type;
|
● |
the Fair Credit Reporting Act (“FCRA”), governing the provision of consumer information to credit reporting agencies and the use of consumer information; and
|
● |
the Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected by collection agencies.
|
ITEM 1A. |
RISK FACTORS
|
● |
investors may have less confidence in the equity markets in general and in financial services industry stocks in particular, which could place downward pressure on the Company’s stock price and resulting market
valuation;
|
● |
consumer and business confidence levels could be lowered and cause declines in credit usage and adverse changes in payment patterns, causing increases in delinquencies and default rates;
|
● |
the Company’s ability to assess the creditworthiness of its customers may be impaired if the models and approaches the Company uses to select, manage and underwrite its customers become less predictive of future
behaviors;
|
● |
the Company could suffer decreases in demand for loans or other financial products and services or decreased deposits or other investments in accounts with the Company;
|
● |
demand for and income received from the Company’s fee-based services could decline;
|
● |
customers of the Company’s trust and benefit plan administration business may liquidate investments, which together with lower asset values, may reduce the level of assets under management and administration and
thereby decrease the Company’s investment management and administration revenues;
|
● |
competition in the financial services industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions or otherwise; and
|
● |
the value of loans and other assets or collateral securing loans may decrease.
|
● |
the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards and safe, sound assets;
|
● |
the ability to expand the Company’s market position;
|
● |
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
● |
the rate at which the Company introduces new products, services and technologies relative to its competitors;
|
● |
customer satisfaction with the Company’s level of service;
|
● |
industry and general economic trends; and
|
● |
the ability to attract and retain talented employees.
|
● |
applicability of Volcker Rule requirements and restrictions;
|
● |
increased capital, leverage, liquidity and risk management standards;
|
● |
examinations by the CFPB for compliance with federal consumer financial protection laws and regulations; and
|
● |
limits on interchange fees from debit cards transactions.
|
● |
the Company could incur substantial costs relating to the proposed merger, such as legal, accounting, financial advisor, filing, printing and mailing fees; and
|
● |
the Company’s management’s and employees’ attention may be diverted from their day-to-day business and operational matters as a result of efforts relating to attempting to consummate the merger.
|
● |
we may not have enough cash to pay such dividends due to changes in its cash requirements, capital spending plans, cash flow or financial position;
|
● |
decisions on whether, when and in what amounts to make any future dividends will remain at all times entirely at the discretion of our Board of Directors, which reserves the right to change our dividend practices
at any time and for any reason; and
|
● |
the amount of dividends that our subsidiaries may distribute to us may be subject to restrictions imposed by state law and restrictions imposed by the terms of any current or future indebtedness that these
subsidiaries may incur.
|
● |
exposure to potential asset quality issues of the acquired business;
|
● |
potential exposure to unknown or contingent liabilities of the acquired business;
|
● |
our ability to realize anticipated cost savings;
|
● |
the difficulty of integrating operations and personnel and the potential loss of key employees;
|
● |
the potential disruption of our or the acquired company’s ongoing business in such a way that could result in decreased revenues or the inability of our management to maximize our financial and strategic position;
|
● |
the inability to maintain uniform standards, controls, procedures and policies; and
|
● |
the impairment of relationships with the acquired company’s employees and customers as a result of changes in ownership and management.
|
ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 2. |
PROPERTIES
|
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period Ending
|
||||||||||||||||||||||||
Index
|
12/31/17
|
12/31/18
|
12/31/19
|
12/31/20
|
12/31/21
|
12/31/22
|
||||||||||||||||||
NBT Bancorp
|
$
|
100.00
|
$
|
96.48
|
$
|
116.34
|
$
|
95.26
|
$
|
117.77
|
$
|
136.65
|
||||||||||||
KBW Regional Bank Index
|
$
|
100.00
|
$
|
82.51
|
$
|
102.20
|
$
|
93.33
|
$
|
127.53
|
$
|
118.71
|
||||||||||||
NASDAQ Composite Index
|
$
|
100.00
|
$
|
97.18
|
$
|
132.88
|
$
|
192.74
|
$
|
235.56
|
$
|
158.97
|
ITEM 6. |
[RESERVED]
|
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
● |
net income of $152.0 million, or $3.52 diluted earnings per share;
|
● |
noninterest income of $155.6 million, down 1.4% from 2021; represents 30% of total revenues;
|
● |
period end loans were $8.15 billion, up 8.7% (10.2% excluding Paycheck Protection Program (“PPP”) loans);
|
● |
strong credit quality metrics including net charge-offs of 0.11% and allowance for loan losses to total loans at 1.24%;
|
● |
book value per share of $27.38 at December 31, 2022; tangible book value per share was $20.65(1) at December 31, 2022.
|
(1) |
Non-GAAP measure - Refer to non-GAAP reconciliation below.
|
● |
Generated positive operating leverage of $21.7 million with total revenues increasing 8.1%, or $38.9 million, while operating expenses were higher by 6.0%, or $17.2 million.
|
● |
Net interest income in 2022 improved in comparison to 2021, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate combined with growth in
earning assets, strongly overcoming a $17.6 million ($0.31 per diluted share) year-over-year decrease in income from the Paycheck Protection Program (“PPP”).
|
● |
The Company recorded a provision for loan losses of $17.1 million ($0.31 per diluted share) in 2022, compared to a net benefit of $8.3 million ($0.15 per diluted share) in 2021.
|
● |
Card services income was lower than 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act (“Durbin Amendment”) of
approximately $8 million ($0.14 per diluted share).
|
● |
2022 full-year results included $1.0 million in merger-related expenses. Significant non-recurring transactions occurring in 2021 included a $4.3 million estimated litigation settlement cost related to a
pending lawsuit regarding certain of the Company’s deposit products and related disclosures. Significant non-recurring transactions occurring in 2020 included a $4.8 million expense related to branch optimization.
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Performance:
|
||||||||||||
Diluted earnings per share
|
$
|
3.52
|
$
|
3.54
|
$
|
2.37
|
||||||
Return on average assets
|
1.29
|
%
|
1.33
|
%
|
0.99
|
%
|
||||||
Return on average equity
|
12.67
|
%
|
12.71
|
%
|
9.09
|
%
|
||||||
Return on average tangible common equity
|
16.89
|
%
|
16.92
|
%
|
12.48
|
%
|
||||||
Net interest margin (FTE)
|
3.34
|
%
|
3.03
|
%
|
3.31
|
%
|
||||||
Capital:
|
||||||||||||
Equity to assets
|
10.00
|
%
|
10.41
|
%
|
10.86
|
%
|
||||||
Tangible equity ratio
|
7.73
|
%
|
8.20
|
%
|
8.41
|
%
|
||||||
Book value per share
|
$
|
27.38
|
$
|
28.97
|
$
|
27.22
|
||||||
Tangible book value per share
|
$
|
20.65
|
$
|
22.26
|
$
|
20.52
|
||||||
Leverage ratio
|
10.32
|
%
|
9.41
|
%
|
9.56
|
%
|
||||||
Common equity tier 1 capital ratio
|
12.12
|
%
|
12.25
|
%
|
11.84
|
%
|
||||||
Tier 1 capital ratio
|
13.19
|
%
|
13.43
|
%
|
13.09
|
%
|
||||||
Total risk-based capital ratio
|
15.38
|
%
|
15.73
|
%
|
15.62
|
%
|
Years Ended December 31,
|
||||||||||||
(In thousands, except per share data)
|
2022
|
2021
|
2020
|
|||||||||
Return on average tangible common equity:
|
||||||||||||
Net income
|
$
|
151,995
|
$
|
154,885
|
$
|
104,388
|
||||||
Amortization of intangible assets (net of tax)
|
1,698
|
2,106
|
2,546
|
|||||||||
Net income, excluding intangible amortization
|
$
|
153,693
|
$
|
156,991
|
$
|
106,934
|
||||||
Average stockholders’ equity
|
$
|
1,199,383
|
$
|
1,218,449
|
$
|
1,148,475
|
||||||
Less: average goodwill and other intangibles
|
289,238
|
290,838
|
291,787
|
|||||||||
Average tangible common equity
|
$
|
910,145
|
$
|
927,611
|
$
|
856,688
|
||||||
Return on average tangible common equity
|
16.89
|
%
|
16.92
|
%
|
12.48
|
%
|
||||||
Tangible equity ratio:
|
||||||||||||
Stockholders’ equity
|
$
|
1,173,554
|
$
|
1,250,453
|
$
|
1,187,618
|
||||||
Intangibles
|
288,545
|
289,468
|
292,276
|
|||||||||
Assets
|
$
|
11,739,296
|
$
|
12,012,111
|
$
|
10,932,906
|
||||||
Tangible equity ratio
|
7.73
|
%
|
8.20
|
%
|
8.41
|
%
|
||||||
Tangible book value:
|
||||||||||||
Stockholders’ equity
|
$
|
1,173,554
|
$
|
1,250,453
|
$
|
1,187,618
|
||||||
Intangibles
|
288,545
|
289,468
|
292,276
|
|||||||||
Tangible equity
|
$
|
885,009
|
$
|
960,985
|
$
|
895,342
|
||||||
Diluted common shares outstanding
|
42,858
|
43,168
|
43,629
|
|||||||||
Tangible book value per share
|
$
|
20.65
|
$
|
22.26
|
$
|
20.52
|
● |
Excess liquidity in the banking system has significantly decreased:
|
ο |
loan growth may be negatively impacted as interest rates have risen and lenders have begun to revert back to historical credit spreads to account for overall higher cost of funds;
|
ο |
cost of deposits as well as overall cost of funds could negatively impact net interest margin. Excess liquidity allowed financial institutions to significantly lag deposit rates in 2022. This lag has increased the potential for a rapid
increase in deposit rates during 2023 relative to federal funds rate increases;
|
ο |
higher interest rates have afforded deposit customers investment opportunities outside the banking system resulting in deposit declines across the industry. Investment purchases have slowed as runoff investment cash flows have been
utilized as a source of funding.
|
● |
Inflationary pressures have taken a hold of the economy as drivers of inflation, initially considered to be transitory in nature, have proven to be more persistent:
|
ο |
this spike to inflation has had a significant impact on current and expected Federal Reserve Monetary Policy;
|
ο |
the tightening of monetary policy through measures to raise interest rates has thus far had a benefit given the Company’s asset sensitive balance sheet position. However, elevated deposit costs and the slowing of the economy could
arise as a result of the higher interest rates.
|
● |
The Company’s continued focus on long-term strategies including growth in the New England markets, diversification of revenue, improving operating efficiencies and investing in technology.
|
● |
The Company’s merger with Salisbury Bancorp, Inc. (“Salisbury”) is expected to close in the second quarter of 2023 subject to customary closing conditions, including approval by the stockholders of Salisbury and
required regulatory approvals.
|
2022
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
440,429
|
$
|
3,072
|
0.70
|
%
|
$
|
932,086
|
$
|
1,229
|
0.13
|
%
|
$
|
372,144
|
$
|
610
|
0.16
|
%
|
||||||||||||||||||
Securities taxable(1)
|
2,424,925
|
43,229
|
1.78
|
%
|
1,910,641
|
31,962
|
1.67
|
%
|
1,531,237
|
33,653
|
2.20
|
%
|
||||||||||||||||||||||||
Securities tax-exempt(1) (3)
|
233,515
|
5,070
|
2.17
|
%
|
220,759
|
4,929
|
2.23
|
%
|
173,031
|
5,144
|
2.97
|
%
|
||||||||||||||||||||||||
Federal Reserve Bank and FHLB stock
|
27,040
|
995
|
3.68
|
%
|
25,255
|
616
|
2.44
|
%
|
33,570
|
2,096
|
6.24
|
%
|
||||||||||||||||||||||||
Loans(2) (3)
|
7,772,962
|
333,008
|
4.28
|
%
|
7,543,149
|
302,331
|
4.01
|
%
|
7,461,795
|
308,080
|
4.13
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
$
|
10,898,871
|
$
|
385,374
|
3.54
|
%
|
$
|
10,631,890
|
$
|
341,067
|
3.21
|
%
|
$
|
9,571,777
|
$
|
349,583
|
3.65
|
%
|
||||||||||||||||||
Other assets
|
893,197
|
983,809
|
942,274
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
11,792,068
|
$
|
11,615,699
|
$
|
10,514,051
|
||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
$
|
2,447,978
|
$
|
4,955
|
0.20
|
%
|
$
|
2,587,748
|
$
|
5,117
|
0.20
|
%
|
$
|
2,320,947
|
$
|
10,313
|
0.44
|
%
|
||||||||||||||||||
NOW deposit accounts
|
1,578,831
|
2,600
|
0.16
|
%
|
1,452,560
|
738
|
0.05
|
%
|
1,194,398
|
716
|
0.06
|
%
|
||||||||||||||||||||||||
Savings deposits
|
1,829,360
|
592
|
0.03
|
%
|
1,656,893
|
829
|
0.05
|
%
|
1,393,436
|
745
|
0.05
|
%
|
||||||||||||||||||||||||
Time deposits
|
464,912
|
1,776
|
0.38
|
%
|
577,150
|
4,030
|
0.70
|
%
|
733,073
|
10,296
|
1.40
|
%
|
||||||||||||||||||||||||
Total interest-bearing deposits
|
$
|
6,321,081
|
$
|
9,923
|
0.16
|
%
|
$
|
6,274,351
|
$
|
10,714
|
0.17
|
%
|
$
|
5,641,854
|
$
|
22,070
|
0.39
|
%
|
||||||||||||||||||
Federal funds purchased
|
14,644
|
588
|
4.02
|
%
|
17
|
-
|
-
|
14,727
|
302
|
2.05
|
%
|
|||||||||||||||||||||||||
Repurchase agreements
|
69,561
|
67
|
0.10
|
%
|
100,519
|
132
|
0.13
|
%
|
154,383
|
266
|
0.17
|
%
|
||||||||||||||||||||||||
Short-term borrowings
|
46,371
|
1,968
|
4.24
|
%
|
1,302
|
26
|
2.00
|
%
|
183,699
|
2,840
|
1.55
|
%
|
||||||||||||||||||||||||
Long-term debt
|
6,579
|
161
|
2.45
|
%
|
15,479
|
389
|
2.51
|
%
|
62,990
|
1,553
|
2.47
|
%
|
||||||||||||||||||||||||
Subordinated debt, net
|
98,439
|
5,424
|
5.51
|
%
|
98,259
|
5,437
|
5.53
|
%
|
51,394
|
2,842
|
5.53
|
%
|
||||||||||||||||||||||||
Junior subordinated debt
|
101,196
|
3,749
|
3.70
|
%
|
101,196
|
2,090
|
2.07
|
%
|
101,196
|
2,731
|
2.70
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
6,657,871
|
$
|
21,880
|
0.33
|
%
|
$
|
6,591,123
|
$
|
18,788
|
0.29
|
%
|
$
|
6,210,243
|
$
|
32,604
|
0.53
|
%
|
||||||||||||||||||
Demand deposits
|
3,696,957
|
3,565,693
|
2,895,341
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
237,857
|
240,434
|
259,992
|
|||||||||||||||||||||||||||||||||
Stockholders’ equity
|
1,199,383
|
1,218,449
|
1,148,475
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
11,792,068
|
$
|
11,615,699
|
$
|
10,514,051
|
||||||||||||||||||||||||||||||
Net interest income (FTE)
|
$
|
363,494
|
$
|
322,279
|
$
|
316,979
|
||||||||||||||||||||||||||||||
Interest rate spread
|
3.21
|
%
|
2.92
|
%
|
3.12
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (FTE)
|
3.34
|
%
|
3.03
|
%
|
3.31
|
%
|
||||||||||||||||||||||||||||||
Taxable equivalent adjustment
|
$
|
1,304
|
$
|
1,191
|
$
|
1,301
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
362,190
|
$
|
321,088
|
$
|
315,678
|
(1) |
Securities are shown at average amortized cost.
|
(2) |
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
|
(3) |
Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
|
Increase (Decrease)
2022 over 2021
|
Increase (Decrease)
2021 over 2020
|
|||||||||||||||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
(953
|
)
|
$
|
2,796
|
$
|
1,843
|
$
|
759
|
$
|
(140
|
)
|
$
|
619
|
||||||||||
Securities taxable
|
9,057
|
2,210
|
11,267
|
7,324
|
(9,015
|
)
|
(1,691
|
)
|
||||||||||||||||
Securities tax-exempt
|
279
|
(138
|
)
|
141
|
1,233
|
(1,448
|
)
|
(215
|
)
|
|||||||||||||||
Federal Reserve Bank and FHLB stock
|
46
|
333
|
379
|
(428
|
)
|
(1,052
|
)
|
(1,480
|
)
|
|||||||||||||||
Loans
|
9,406
|
21,271
|
30,677
|
3,332
|
(9,081
|
)
|
(5,749
|
)
|
||||||||||||||||
Total FTE interest income
|
$
|
17,835
|
$
|
26,472
|
$
|
44,307
|
$
|
12,220
|
$
|
(20,736
|
)
|
$
|
(8,516
|
)
|
||||||||||
Money market deposit accounts
|
(281
|
)
|
119
|
(162
|
)
|
1,073
|
(6,269
|
)
|
(5,196
|
)
|
||||||||||||||
NOW deposit accounts
|
70
|
1,792
|
1,862
|
141
|
(119
|
)
|
22
|
|||||||||||||||||
Savings deposits
|
79
|
(316
|
)
|
(237
|
)
|
134
|
(50
|
)
|
84
|
|||||||||||||||
Time deposits
|
(677
|
)
|
(1,577
|
)
|
(2,254
|
)
|
(1,863
|
)
|
(4,403
|
)
|
(6,266
|
)
|
||||||||||||
Federal funds purchased
|
588
|
-
|
588
|
(151
|
)
|
(151
|
)
|
(302
|
)
|
|||||||||||||||
Repurchase agreements
|
(35
|
)
|
(30
|
)
|
(65
|
)
|
(80
|
)
|
(54
|
)
|
(134
|
)
|
||||||||||||
Short-term borrowings
|
1,881
|
61
|
1,942
|
(3,456
|
)
|
642
|
(2,814
|
)
|
||||||||||||||||
Long-term debt
|
(218
|
)
|
(10
|
)
|
(228
|
)
|
(1,193
|
)
|
29
|
(1,164
|
)
|
|||||||||||||
Subordinated debt, net
|
10
|
(23
|
)
|
(13
|
)
|
2,593
|
2
|
2,595
|
||||||||||||||||
Junior subordinated debt
|
-
|
1,659
|
1,659
|
-
|
(641
|
)
|
(641
|
)
|
||||||||||||||||
Total FTE interest expense
|
$
|
1,417
|
$
|
1,675
|
$
|
3,092
|
$
|
(2,802
|
)
|
$
|
(11,014
|
)
|
$
|
(13,816
|
)
|
|||||||||
Change in FTE net interest income
|
$
|
16,418
|
$
|
24,797
|
$
|
41,215
|
$
|
15,022
|
$
|
(9,722
|
)
|
$
|
5,300
|
December 31,
|
||||||||||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
2019
|
2018
|
|||||||||||||||
Commercial & industrial
|
$
|
1,265,082
|
$
|
1,155,240
|
$
|
1,121,224
|
$
|
1,112,616
|
$
|
1,158,113
|
||||||||||
Commercial real estate
|
2,807,941
|
2,655,367
|
2,526,813
|
2,331,650
|
2,064,197
|
|||||||||||||||
Paycheck protection program
|
949
|
101,222
|
430,810
|
-
|
-
|
|||||||||||||||
Residential real estate
|
1,649,870
|
1,571,232
|
1,466,662
|
1,445,156
|
1,380,836
|
|||||||||||||||
Indirect auto
|
989,587
|
859,454
|
931,286
|
1,193,635
|
1,216,144
|
|||||||||||||||
Residential solar
|
856,798
|
440,016
|
282,224
|
219,210
|
129,038
|
|||||||||||||||
Home equity
|
314,124
|
330,357
|
387,974
|
444,082
|
474,566
|
|||||||||||||||
Other consumer
|
265,796
|
385,571
|
351,892
|
389,749
|
464,815
|
|||||||||||||||
Total loans
|
$
|
8,150,147
|
$
|
7,498,459
|
$
|
7,498,885
|
$
|
7,136,098
|
$
|
6,887,709
|
(1) |
Loans are summarized by business line which does not align with how the Company assesses credit risk in the estimate for credit losses under CECL.
|
Remaining Maturity at December 31, 2022
|
||||||||||||||||||||||||
(In thousands)
|
C&I
|
CRE
|
Indirect
Auto
|
Other
Consumer
|
Residential
|
Total
|
||||||||||||||||||
Within one year
|
$
|
207,737
|
$
|
12,621
|
$
|
-
|
$
|
11,767
|
$
|
2
|
$
|
232,127
|
||||||||||||
From one to five years
|
371,004
|
514,260
|
300,940
|
173,255
|
13,656
|
1,373,115
|
||||||||||||||||||
From five to fifteen years
|
470,640
|
2,035,443
|
688,647
|
543,141
|
368,627
|
4,106,498
|
||||||||||||||||||
After fifteen years
|
216,650
|
245,617
|
-
|
708,555
|
1,267,585
|
2,438,407
|
||||||||||||||||||
Total
|
$
|
1,266,031
|
$
|
2,807,941
|
$
|
989,587
|
$
|
1,436,718
|
$
|
1,649,870
|
$
|
8,150,147
|
||||||||||||
Interest rate terms on amounts due after one year:
|
||||||||||||||||||||||||
Fixed
|
$
|
687,863
|
$
|
711,532
|
$
|
989,526
|
$
|
1,219,550
|
$
|
1,574,230
|
$
|
5,182,701
|
||||||||||||
Variable
|
$
|
370,431
|
$
|
2,083,788
|
$
|
61
|
$
|
205,401
|
$
|
75,638
|
$
|
2,735,319
|
As of December 31,
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||
U.S. treasury
|
$
|
132,891
|
$
|
121,658
|
$
|
73,016
|
$
|
73,069
|
$
|
-
|
$
|
-
|
||||||||||||
Federal agency
|
248,419
|
206,419
|
248,454
|
239,931
|
245,590
|
243,597
|
||||||||||||||||||
State & municipal
|
97,036
|
82,851
|
95,531
|
94,088
|
42,550
|
43,180
|
||||||||||||||||||
Mortgage-backed
|
536,021
|
473,694
|
603,375
|
606,675
|
576,497
|
595,839
|
||||||||||||||||||
Collateralized mortgage obligations
|
669,111
|
588,363
|
623,930
|
621,595
|
426,574
|
437,804
|
||||||||||||||||||
Corporate
|
60,404
|
54,240
|
50,500
|
52,003
|
27,500
|
28,278
|
||||||||||||||||||
Total AFS securities
|
$
|
1,743,882
|
$
|
1,527,225
|
$
|
1,694,806
|
$
|
1,687,361
|
$
|
1,318,711
|
$
|
1,348,698
|
||||||||||||
HTM securities:
|
||||||||||||||||||||||||
Federal agency
|
$
|
100,000
|
$
|
79,322
|
$
|
100,000
|
$
|
95,635
|
$
|
100,000
|
$
|
98,342
|
||||||||||||
Mortgage-backed
|
267,907
|
230,473
|
170,574
|
172,001
|
119,447
|
125,009
|
||||||||||||||||||
Collateralized mortgage obligations
|
274,366
|
249,848
|
138,815
|
140,280
|
182,250
|
190,677
|
||||||||||||||||||
State & municipal
|
277,244
|
253,004
|
323,821
|
327,344
|
214,863
|
222,799
|
||||||||||||||||||
Total HTM securities
|
$
|
919,517
|
$
|
812,647
|
$
|
733,210
|
$
|
735,260
|
$
|
616,560
|
$
|
636,827
|
Less than 1 Year
|
1 Year to 5 Years
|
5 Years to 10 Years
|
Over 10 Years
|
Total
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
$ |
|
%
|
$ |
|
%
|
$ |
|
%
|
$ |
|
%
|
$ |
|
%
|
|||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||||||
U.S. treasury
|
$
|
-
|
-
|
$
|
108,444
|
1.70
|
%
|
$
|
24,447
|
1.90
|
%
|
$
|
-
|
-
|
$
|
132,891
|
1.73
|
%
|
||||||||||||||||||||||
Federal agency
|
-
|
-
|
70,000
|
0.79
|
%
|
178,419
|
1.08
|
%
|
-
|
-
|
248,419
|
1.00
|
%
|
|||||||||||||||||||||||||||
State & municipal
|
-
|
-
|
46,275
|
1.21
|
%
|
50,761
|
1.53
|
%
|
-
|
-
|
97,036
|
1.38
|
%
|
|||||||||||||||||||||||||||
Mortgage-backed
|
682
|
1.78
|
%
|
93,240
|
1.35
|
%
|
178,944
|
2.28
|
%
|
263,155
|
1.58
|
%
|
536,021
|
1.78
|
%
|
|||||||||||||||||||||||||
Collateralized mortgage obligations
|
-
|
-
|
84,848
|
2.58
|
%
|
89,761
|
1.37
|
%
|
494,502
|
1.94
|
%
|
669,111
|
1.94
|
%
|
||||||||||||||||||||||||||
Corporate
|
-
|
-
|
-
|
-
|
60,404
|
3.92
|
%
|
-
|
-
|
60,404
|
3.92
|
%
|
||||||||||||||||||||||||||||
Total AFS securities
|
$
|
682
|
1.78
|
%
|
$
|
402,807
|
1.59
|
%
|
$
|
582,736
|
1.86
|
%
|
$
|
757,657
|
1.81
|
%
|
$
|
1,743,882
|
1.78
|
%
|
||||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||||||
Federal agency
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
100,000
|
1.11
|
%
|
$
|
-
|
-
|
$
|
100,000
|
1.11
|
%
|
|||||||||||||||||||||||
Mortgage-backed
|
-
|
-
|
16
|
7.42
|
%
|
18,380
|
4.02
|
%
|
249,511
|
2.02
|
%
|
267,907
|
2.16
|
%
|
||||||||||||||||||||||||||
Collateralized mortgage obligations
|
-
|
-
|
10,636
|
2.50
|
%
|
101,670
|
3.02
|
%
|
162,060
|
2.81
|
%
|
274,366
|
2.88
|
%
|
||||||||||||||||||||||||||
State & municipal
|
49,986
|
2.48
|
%
|
81,791
|
2.27
|
%
|
58,614
|
1.95
|
%
|
86,853
|
1.84
|
%
|
277,244
|
2.11
|
%
|
|||||||||||||||||||||||||
Total HTM securities
|
$
|
49,986
|
2.48
|
%
|
$
|
92,443
|
2.30
|
%
|
$
|
278,664
|
2.17
|
%
|
$
|
498,424
|
2.25
|
%
|
$
|
919,517
|
2.12
|
%
|
Years Ended December 31,
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
(In thousands)
|
Average
Balance
|
Yield/Rate
|
Average
Balance
|
Yield Rate
|
Average
Balance
|
Yield/Rate
|
||||||||||||||||||
Demand deposits
|
$
|
3,696,957
|
$
|
3,565,693
|
$
|
2,895,341
|
||||||||||||||||||
Money market deposit accounts
|
2,447,978
|
0.20
|
%
|
2,587,748
|
0.20
|
%
|
2,320,947
|
0.44
|
%
|
|||||||||||||||
NOW deposit accounts
|
1,578,831
|
0.16
|
%
|
1,452,560
|
0.05
|
%
|
1,194,398
|
0.06
|
%
|
|||||||||||||||
Savings deposits
|
1,829,360
|
0.03
|
%
|
1,656,893
|
0.05
|
%
|
1,393,436
|
0.05
|
%
|
|||||||||||||||
Time deposits
|
464,912
|
0.38
|
%
|
577,150
|
0.70
|
%
|
733,073
|
1.40
|
%
|
|||||||||||||||
Total interest-bearing deposits
|
$
|
6,321,081
|
0.16
|
%
|
$
|
6,274,351
|
0.17
|
%
|
$
|
5,641,854
|
0.39
|
%
|
As of December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Estimated amount of uninsured deposits
|
$
|
3,555,342
|
$
|
4,175,208
|
$
|
3,639,731
|
(In thousands)
|
December 31, 2022
|
|||
Portion of time deposits in excess of insurance limit
|
$
|
20,623
|
||
Time deposits otherwise uninsured with a maturity of:
|
||||
Within three months
|
$
|
4,362
|
||
After three but within six months
|
2,377
|
|||
After six but within twelve months
|
2,176
|
|||
Over twelve months
|
11,708
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Service charges on deposit account
|
$
|
14,630
|
$
|
13,348
|
$
|
13,201
|
||||||
Card services income
|
29,058
|
34,682
|
28,611
|
|||||||||
Retirement plan administration fees
|
48,112
|
42,188
|
35,851
|
|||||||||
Wealth management
|
33,311
|
33,718
|
29,247
|
|||||||||
Insurance services
|
14,696
|
14,083
|
14,757
|
|||||||||
Bank owned life insurance income
|
6,044
|
6,217
|
5,743
|
|||||||||
Net securities (losses) gains
|
(1,131
|
)
|
566
|
(388
|
)
|
|||||||
Other
|
10,858
|
12,992
|
19,254
|
|||||||||
Total noninterest income
|
$
|
155,578
|
$
|
157,794
|
$
|
146,276
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Salaries and employee benefits
|
$
|
187,830
|
$
|
172,580
|
$
|
161,934
|
||||||
Technology and data services
|
35,712
|
34,717
|
32,294
|
|||||||||
Occupancy
|
26,282
|
26,048
|
25,756
|
|||||||||
Professional fees and outside services
|
16,810
|
16,306
|
15,082
|
|||||||||
Office supplies and postage
|
6,140
|
6,006
|
6,138
|
|||||||||
FDIC expenses
|
3,197
|
3,041
|
2,688
|
|||||||||
Advertising
|
2,822
|
2,521
|
2,288
|
|||||||||
Amortization of intangible assets
|
2,263
|
2,808
|
3,395
|
|||||||||
Loan collection and other real estate owned, net
|
2,647
|
2,915
|
3,295
|
|||||||||
Merger expenses
|
967
|
-
|
-
|
|||||||||
Other
|
19,795
|
20,339
|
24,863
|
|||||||||
Total noninterest expense
|
$
|
304,465
|
$
|
287,281
|
$
|
277,733
|
As of December 31,
|
||||||||||||||||||||||||
(Dollars in thousands)
|
2022
|
%
|
2021
|
%
|
2020
|
%
|
||||||||||||||||||
Nonaccrual loans:
|
||||||||||||||||||||||||
Commercial
|
$
|
7,664
|
44
|
%
|
$
|
15,942
|
53
|
%
|
$
|
23,557
|
53
|
%
|
||||||||||||
Residential
|
4,835
|
28
|
%
|
8,862
|
29
|
%
|
13,082
|
29
|
%
|
|||||||||||||||
Consumer
|
1,667
|
10
|
%
|
1,511
|
5
|
%
|
3,020
|
7
|
%
|
|||||||||||||||
Troubled debt restructured loans
|
3,067
|
18
|
%
|
3,970
|
13
|
%
|
4,988
|
11
|
%
|
|||||||||||||||
Total nonaccrual loans
|
$
|
17,233
|
100
|
%
|
$
|
30,285
|
100
|
%
|
$
|
44,647
|
100
|
%
|
||||||||||||
Loans over 90 days past due and still accruing:
|
||||||||||||||||||||||||
Commercial
|
$
|
4
|
-
|
$
|
-
|
-
|
$
|
493
|
16
|
%
|
||||||||||||||
Residential
|
771
|
20
|
%
|
808
|
33
|
%
|
518
|
16
|
%
|
|||||||||||||||
Consumer
|
3,048
|
80
|
%
|
1,650
|
67
|
%
|
2,138
|
68
|
%
|
|||||||||||||||
Total loans over 90 days past due and still accruing
|
$
|
3,823
|
100
|
%
|
$
|
2,458
|
100
|
%
|
$
|
3,149
|
100
|
%
|
||||||||||||
Total nonperforming loans
|
$
|
21,056
|
$
|
32,743
|
$
|
47,796
|
||||||||||||||||||
OREO
|
105
|
167
|
1,458
|
|||||||||||||||||||||
Total nonperforming assets
|
$
|
21,161
|
$
|
32,910
|
$
|
49,254
|
||||||||||||||||||
Total nonaccrual loans to total loans
|
0.21
|
%
|
0.40
|
%
|
0.60
|
%
|
||||||||||||||||||
Total nonperforming loans to total loans
|
0.26
|
%
|
0.44
|
%
|
0.64
|
%
|
||||||||||||||||||
Total nonperforming assets to total assets
|
0.18
|
%
|
0.27
|
%
|
0.45
|
%
|
||||||||||||||||||
Total allowance for loan losses to nonperforming loans
|
478.72
|
%
|
280.98
|
%
|
230.14
|
%
|
||||||||||||||||||
Total allowance for loan losses to nonaccrual loans
|
584.92
|
%
|
303.78
|
%
|
246.38
|
%
|
As of December 31,
|
||||||||||||||||
(Dollars in thousands)
|
2019
|
%
|
2018
|
%
|
||||||||||||
Nonaccrual loans:
|
||||||||||||||||
Commercial
|
$
|
12,379
|
49
|
%
|
$
|
11,804
|
46
|
%
|
||||||||
Residential real estate
|
5,233
|
21
|
%
|
6,526
|
26
|
%
|
||||||||||
Consumer
|
4,046
|
16
|
%
|
4,068
|
16
|
%
|
||||||||||
Troubled debt restructured loans
|
3,516
|
14
|
%
|
3,089
|
12
|
%
|
||||||||||
Total nonaccrual loans
|
$
|
25,174
|
100
|
%
|
$
|
25,487
|
100
|
%
|
||||||||
Loans over 90 days past due and still accruing:
|
||||||||||||||||
Commercial
|
$
|
-
|
-
|
$
|
588
|
12
|
%
|
|||||||||
Residential real estate
|
927
|
25
|
%
|
1,182
|
23
|
%
|
||||||||||
Consumer
|
2,790
|
75
|
%
|
3,315
|
65
|
%
|
||||||||||
Total loans over 90 days past due and still accruing
|
$
|
3,717
|
100
|
%
|
$
|
5,085
|
100
|
%
|
||||||||
Total nonperforming loans
|
$
|
28,891
|
$
|
30,572
|
||||||||||||
OREO
|
1,458
|
2,441
|
||||||||||||||
Total nonperforming assets
|
$
|
30,349
|
$
|
33,013
|
||||||||||||
Total nonaccrual loans to total loans
|
0.35
|
%
|
0.37
|
%
|
||||||||||||
Total nonperforming loans to total loans
|
0.40
|
%
|
0.44
|
%
|
||||||||||||
Total nonperforming assets to total assets
|
0.31
|
%
|
0.35
|
%
|
||||||||||||
Total allowance for loan losses to nonperforming loans
|
252.55
|
%
|
237.16
|
%
|
||||||||||||
Total allowance for loan losses to nonaccrual loans
|
289.84
|
%
|
284.48
|
%
|
(Dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Balance at January 1*
|
$
|
92,000
|
$
|
110,000
|
$
|
75,999
|
||||||
Loans charged-off
|
||||||||||||
Commercial
|
1,870
|
4,638
|
4,005
|
|||||||||
Residential
|
633
|
979
|
1,135
|
|||||||||
Consumer**
|
16,140
|
14,489
|
21,938
|
|||||||||
Total loans charged-off
|
$
|
18,643
|
$
|
20,106
|
$
|
27,078
|
||||||
Recoveries
|
||||||||||||
Commercial
|
$
|
2,430
|
$
|
723
|
$
|
786
|
||||||
Residential
|
852
|
1,069
|
618
|
|||||||||
Consumer**
|
7,014
|
8,571
|
8,541
|
|||||||||
Total recoveries
|
$
|
10,296
|
$
|
10,363
|
$
|
9,945
|
||||||
Net loans charged-off
|
$
|
8,347
|
$
|
9,743
|
$
|
17,133
|
||||||
Provision for loan losses
|
$
|
17,147
|
$
|
(8,257
|
)
|
$
|
51,134
|
|||||
Balance at December 31
|
$
|
100,800
|
$
|
92,000
|
$
|
110,000
|
||||||
Allowance for loan losses to loans outstanding at end of year
|
1.24
|
%
|
1.23
|
%
|
1.47
|
%
|
||||||
Commercial net charge-offs to average loans outstanding
|
(0.01
|
%)
|
0.05
|
%
|
0.04
|
%
|
||||||
Residential net charge-offs to average loans outstanding
|
-
|
-
|
0.01
|
%
|
||||||||
Consumer net charge-offs to average loans outstanding
|
0.12
|
%
|
0.08
|
%
|
0.18
|
%
|
||||||
Net charge-offs to average loans outstanding
|
0.11
|
%
|
0.13
|
%
|
0.23
|
%
|
* |
2020 includes an adjustment of $3.0 million as a result of our January 1, 2020, adoption of Accounting Standards Codification (“ASC”) 326.
|
**
|
Consumer charge-off and recoveries include consumer and home equity.
|
(Dollars in thousands)
|
2019
|
2018
|
||||||
Balance at January 1
|
$
|
72,505
|
$
|
69,500
|
||||
Loans charged-off
|
||||||||
Commercial and agricultural
|
3,151
|
3,463
|
||||||
Residential real estate
|
991
|
913
|
||||||
Consumer
|
28,398
|
29,752
|
||||||
Total loans charged-off
|
$
|
32,540
|
$
|
34,128
|
||||
Recoveries
|
||||||||
Commercial and agricultural
|
$
|
534
|
$
|
1,178
|
||||
Residential real estate
|
141
|
306
|
||||||
Consumer
|
6,913
|
6,821
|
||||||
Total recoveries
|
$
|
7,588
|
$
|
8,305
|
||||
Net loans charged-off
|
$
|
24,952
|
$
|
25,823
|
||||
Provision for loan losses
|
$
|
25,412
|
$
|
28,828
|
||||
Balance at December 31
|
$
|
72,965
|
$
|
72,505
|
||||
Allowance for loan losses to loans outstanding at end of year
|
1.02
|
%
|
1.05
|
%
|
||||
Commercial and agricultural net charge-offs to average loans outstanding
|
0.04
|
%
|
0.03
|
%
|
||||
Residential real estate net charge-offs to average loans outstanding
|
0.01
|
%
|
0.01
|
%
|
||||
Consumer net charge-offs to average loans outstanding
|
0.31
|
%
|
0.34
|
%
|
||||
Net charge-offs to average loans outstanding
|
0.36
|
%
|
0.38
|
%
|
December 31,
|
||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||
(Dollars in thousands)
|
Allowance
|
Category
Percent of Loans
|
Allowance
|
Category
Percent of Loans
|
Allowance
|
Category
Percent of Loans
|
||||||||||||||||||
Commercial
|
$
|
34,722
|
48
|
%
|
$
|
28,941
|
51
|
%
|
$
|
50,942
|
53
|
%
|
||||||||||||
Residential
|
15,127
|
26
|
%
|
18,806
|
27
|
%
|
21,255
|
26
|
%
|
|||||||||||||||
Consumer
|
50,951
|
26
|
%
|
44,253
|
22
|
%
|
37,803
|
21
|
%
|
|||||||||||||||
Total
|
$
|
100,800
|
100
|
%
|
$
|
92,000
|
100
|
%
|
$
|
110,000
|
100
|
%
|
December 31,
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
(Dollars in thousands)
|
Allowance
|
Category
Percent of Loans
|
Allowance
|
Category
Percent of Loans
|
||||||||||||
Commercial and agricultural
|
$
|
34,525
|
48
|
%
|
$
|
32,759
|
47
|
%
|
||||||||
Residential real estate
|
2,793
|
20
|
%
|
2,568
|
20
|
%
|
||||||||||
Consumer
|
35,647
|
32
|
%
|
37,178
|
33
|
%
|
||||||||||
Total
|
$
|
72,965
|
100
|
%
|
$
|
72,505
|
100
|
%
|
(In thousands)
|
December 31, 2022
|
|||
Within one year
|
$
|
47,744
|
||
After one but within three years
|
4,498
|
|||
After three but within five years
|
901
|
|||
After five years
|
164
|
|||
Total
|
$
|
53,307
|
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
|
Change in interest rates
(in bps points)
|
Percent change in
net interest income
|
||||
+200
|
2.83
|
%
|
|||
+100
|
1.60
|
%
|
|||
-200
|
(3.99
|
%)
|
● |
development of the collective ACL on loans methodology
|
● |
development of the PD regression models
|
● |
continued use and appropriateness of changes made to PD regression and LGD models
|
● |
performance monitoring of the PD regression and LGD models
|
● |
identification and determination of the expected prepayments assumption and the significant assumptions used in the PD regression and LGD models
|
● |
development of the qualitative methodology, including the significant assumptions used in the measurement of select qualitative adjustments
|
● |
analysis of the collective ACL on loans results, trends, and ratios.
|
● |
evaluating the Company’s collective ACL on loans methodology for compliance with U.S. generally accepted accounting principles
|
● |
evaluating judgments made by the Company relative to the development and performance monitoring of the PD regression and LGD models, by comparing
them to relevant Company-specific metrics and trends and the applicable industry practices
|
● |
assessing the conceptual soundness and performance testing of the PD regression and LGD models, by inspecting the model documentation to determine
whether the models are suitable for their intended use
|
● |
evaluating the expected prepayments assumption by comparing to relevant Company-specific metrics and trends and current economic considerations
|
● |
evaluating the selection of economic forecast scenarios, including weighting of the scenarios, and underlying economic variables, by comparing to the
Company’s business environment and relevant industry practices
|
● |
evaluating the length of the period from which historical Company and peer experience was used and the reasonable and supportable forecast period by
comparing them to specific portfolio risk characteristics and trends
|
● |
assessing the composition of the peer group by comparing to Company and specific portfolio risk characteristics
|
● |
determining whether the loan portfolio is segmented by similar risk characteristics by comparing to the Company’s business environment, loan
portfolio categories and sub-categories and relevant industry practices
|
● |
evaluating the methodology used to develop the qualitative adjustments and the effect of those adjustments on the collective ACL on loans by
comparing to relevant credit risk factors, the current economic environment and consistency with credit trends and identified limitations of the underlying quantitative models.
|
● |
cumulative results of the audit procedures
|
● |
qualitative aspects of the Company’s accounting practices
|
● |
potential bias in the accounting estimate.
|
As of December 31,
|
||||||||
2022
|
2021
|
|||||||
(In thousands except share and per share data)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Short-term interest-bearing accounts
|
|
|
||||||
Equity securities, at fair value
|
|
|
||||||
Securities available for sale, at fair value
|
|
|
||||||
Securities held to maturity (fair value $
|
|
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans
|
|
|
||||||
Less allowance for loan losses
|
|
|
||||||
Net loans
|
$
|
|
$
|
|
||||
Premises and equipment, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities
|
||||||||
Demand (noninterest bearing)
|
$
|
|
$
|
|
||||
Savings, NOW and money market
|
|
|
||||||
Time
|
|
|
||||||
Total deposits
|
$
|
|
$
|
|
||||
Short-term borrowings
|
|
|
||||||
Long-term debt
|
|
|
||||||
Subordinated debt, net
|
|
|
||||||
Junior subordinated debt
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
$
|
|
$
|
|
||||
Stockholders’ equity
|
||||||||
Preferred stock, $
|
$
|
|
$
|
|
||||
Common stock, $
|
|
|
||||||
Additional paid-in-capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Common stock in treasury, at cost,
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
$
|
|
$
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(In thousands, except per share data)
|
||||||||||||
Interest, fee and dividend income
|
||||||||||||
Interest and fees on loans
|
$
|
|
$
|
|
$
|
|
||||||
Securities available for sale
|
|
|
|
|||||||||
Securities held to maturity
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total interest, fee and dividend income
|
$
|
|
$
|
|
$
|
|
||||||
Interest expense
|
||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
||||||
Short-term borrowings
|
|
|
|
|||||||||
Long-term debt
|
|
|
|
|||||||||
Subordinated debt
|
|
|
|
|||||||||
Junior subordinated debt
|
|
|
|
|||||||||
Total interest expense
|
$
|
|
$
|
|
$
|
|
||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Provision for loan losses
|
|
(
|
)
|
|
||||||||
Net interest income after provision for loan losses
|
$
|
|
$
|
|
$
|
|
||||||
Noninterest income
|
||||||||||||
Service charges on deposit accounts
|
$
|
|
$
|
|
$
|
|
||||||
Card services income
|
|
|
|
|||||||||
Retirement plan administration fees
|
|
|
|
|||||||||
Wealth management
|
|
|
|
|||||||||
Insurance services
|
|
|
|
|||||||||
Bank owned life insurance income
|
|
|
|
|||||||||
Net securities (losses) gains
|
(
|
)
|
|
(
|
)
|
|||||||
Other
|
|
|
|
|||||||||
Total noninterest income
|
$
|
|
$
|
|
$
|
|
||||||
Noninterest expense
|
||||||||||||
Salaries and employee benefits
|
$
|
|
$
|
|
$
|
|
||||||
Technology and data services | ||||||||||||
Occupancy
|
|
|
|
|||||||||
Professional fees and outside services
|
|
|
|
|||||||||
Office supplies and postage
|
|
|
|
|||||||||
FDIC expenses
|
|
|
|
|||||||||
Advertising
|
|
|
|
|||||||||
Amortization of intangible assets
|
|
|
|
|||||||||
Loan collection and other real estate owned, net
|
|
|
|
|||||||||
Merger expenses |
||||||||||||
Other
|
|
|
|
|||||||||
Total noninterest expense
|
$
|
|
$
|
|
$
|
|
||||||
Income before income tax expense
|
$
|
|
$
|
|
$
|
|
||||||
Income tax expense
|
|
|
|
|||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Earnings per share
|
||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(In thousands)
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Securities available for sale:
|
||||||||||||
Unrealized net holding (losses) gains arising during the period, gross
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
Tax effect
|
|
|
(
|
)
|
||||||||
Unrealized net holding (losses) gains arising during the period, net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
Reclassification adjustment for net (gains) in net income, gross
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Tax effect
|
|
|
|
|||||||||
Reclassification adjustment for net (gains) in net income, net
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross
|
$
|
|
$
|
|
$
|
|
||||||
Tax effect
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net
|
$
|
|
$
|
|
$
|
|
||||||
Total securities available for sale, net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
Cash flow hedges:
|
||||||||||||
Unrealized losses on derivatives (cash flow hedges), gross
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Tax effect
|
|
|
|
|||||||||
Unrealized losses on derivatives (cash flow hedges), net
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Reclassification of net unrealized losses on cash flow hedges to interest expense, gross
|
$
|
|
$
|
|
$
|
|
||||||
Tax effect
|
|
(
|
)
|
(
|
)
|
|||||||
Reclassification of net unrealized losses on cash flow hedges to interest expense, net
|
$
|
|
$
|
|
$
|
|
||||||
Total cash flow hedges, net
|
$
|
|
$
|
|
$
|
|
||||||
Pension and other benefits:
|
||||||||||||
Amortization of prior service cost and actuarial losses, gross
|
$
|
|
$
|
|
$
|
|
||||||
Tax effect
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Amortization of prior service cost and actuarial losses, net
|
$
|
|
$
|
|
$
|
|
||||||
(Increase) decrease in unrecognized actuarial loss, gross
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Tax effect
|
|
(
|
)
|
(
|
)
|
|||||||
(Increase) decrease in unrecognized actuarial loss, net
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Total pension and other benefits, net
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Total other comprehensive (loss) income
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
Comprehensive (loss) income
|
$
|
(
|
)
|
$
|
|
$
|
|
|
Common
Stock
|
Additional
Paid-in-
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Common
Stock in
Treasury
|
Total
|
||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||||||
Balance at December 31, 2019
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Cumulative effect adjustment for ASU 2016-13 implementation as of January 1, 2020
|
( |
) | ( |
) | ||||||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of |
( |
) | ( |
) | ||||||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
||||||||||||||||||
Balance at December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of
|
( |
) | ( |
) | ||||||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at December 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
(In thousands)
|
||||||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||
Provision for loan losses
|
|
(
|
)
|
|
||||||||
Depreciation and amortization of premises and equipment
|
|
|
|
|||||||||
Net amortization on securities
|
|
|
|
|||||||||
Amortization of intangible assets
|
|
|
|
|||||||||
Amortization of operating lease right-of-use assets
|
|
|
|
|||||||||
Excess tax benefit on stock-based compensation
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Stock-based compensation expense
|
|
|
|
|||||||||
Bank owned life insurance income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Amortization of subordinated debt issuance costs
|
|
|
|
|||||||||
Discount on repurchase of subordinated debt |
( |
) | ||||||||||
Proceeds from sale of loans held for sale
|
|
|
|
|||||||||
Originations of loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net gains on sales of loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net security losses (gains)
|
|
(
|
)
|
|
||||||||
Net (gains) losses on sale of other real estate owned
|
(
|
)
|
|
(
|
)
|
|||||||
Lease termination losses
|
|
|
|
|||||||||
Net change in other assets and other liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash provided by operating activities
|
$
|
|
$
|
|
$
|
|
||||||
Investing activities
|
||||||||||||
Net cash used in acquisitions
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Securities available for sale:
|
||||||||||||
Proceeds from maturities, calls and principal paydowns
|
|
|
|
|||||||||
Purchases
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Securities held to maturity:
|
||||||||||||
Proceeds from maturities, calls and principal paydowns
|
|
|
|
|||||||||
Proceeds from sales
|
|
|
|
|||||||||
Purchases
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Equity securities:
|
||||||||||||
Proceeds from calls
|
|
|
|
|||||||||
Purchases
|
(
|
)
|
|
|
||||||||
Other:
|
||||||||||||
Net increase in loans
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from Federal Home Loan Bank stock redemption
|
|
|
|
|||||||||
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from settlement of bank owned life insurance
|
|
|
|
|||||||||
Purchase of bank owned life insurance | ( |
) | ||||||||||
Purchases of premises and equipment, net
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from sales of other real estate owned
|
|
|
|
|||||||||
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Financing activities
|
||||||||||||
Net (decrease) increase in deposits
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Net increase (decrease) in short-term borrowings
|
|
(
|
)
|
(
|
)
|
|||||||
Proceeds from issuance of subordinated debt
|
|
|
|
|||||||||
Payment of subordinated debt issuance costs
|
|
|
(
|
)
|
||||||||
Repurchase of subordinated debt |
( |
) | ||||||||||
Proceeds from issuance of long-term debt
|
|
|
|
|||||||||
Repayments of long-term debt
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from the issuance of shares to employee and other stock plans
|
|
|
|
|||||||||
Cash paid by employer for tax-withholding on stock issuance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash dividends
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash (used in) provided by financing activities
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Net (decrease) increase in cash and cash equivalents
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Cash and cash equivalents at beginning of year
|
|
|
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest expense
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes paid, net of refund
|
|
|
|
|||||||||
Noncash investing activities:
|
||||||||||||
Loans transferred to other real estate owned
|
$
|
|
$
|
|
$
|
|
||||||
Acquisitions:
|
||||||||||||
Fair value of assets acquired
|
$
|
|
$
|
|
$
|
|
Portfolio Segment
|
Class
|
Commercial Loans
|
Commercial & Industrial
Paycheck Protection Program
Commercial Real Estate
|
Consumer Loans
|
Auto
Other Consumer
|
Residential Loans
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Noninterest income
|
||||||||||||
In-Scope of ASC 606:
|
||||||||||||
Service charges on deposit accounts
|
$
|
|
$
|
|
$
|
|
||||||
Card services income
|
|
|
|
|||||||||
Retirement plan administration fees
|
|
|
|
|||||||||
Wealth management
|
|
|
|
|||||||||
Insurance services
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total noninterest income in-scope of ASC 606
|
$
|
|
$
|
|
$
|
|
||||||
Total noninterest income out-of-scope of ASC 606
|
$
|
|
$
|
|
$
|
|
||||||
Total noninterest income
|
$
|
|
$
|
|
$
|
|
2.
|
Recent Accounting Pronouncements
|
3. |
Acquisitions
|
4. |
Securities
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of December 31, 2022
|
||||||||||||||||
U.S. treasury |
$ | $ | $ | ( |
) | $ | ||||||||||
Federal agency
|
|
|
(
|
)
|
|
|||||||||||
State & municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
(
|
)
|
|
|||||||||||
Corporate
|
|
|
(
|
)
|
|
|||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
As of December 31, 2021
|
||||||||||||||||
U.S. treasury |
$ | $ | $ | ( |
) | $ | ||||||||||
Federal agency
|
|
|
(
|
)
|
|
|||||||||||
State & municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government securities
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government securities
|
|
|
(
|
)
|
|
|||||||||||
Corporate |
( |
) | ||||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Gross realized gains
|
$
|
|
$
|
|
$
|
|
||||||
Gross realized (losses)
|
|
|
|
|||||||||
Net AFS realized gains (losses)
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of December 31, 2022
|
||||||||||||||||
Federal agency
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
(
|
)
|
|
|||||||||||
State & municipal
|
|
|
(
|
)
|
|
|||||||||||
Total HTM securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
As of December 31, 2021
|
||||||||||||||||
Federal agency |
$ | $ | $ | ( |
) | $ | ||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
(
|
)
|
|
|||||||||||
U.S. government agency securities
|
|
|
(
|
)
|
|
|||||||||||
State & municipal
|
|
|
(
|
)
|
|
|||||||||||
Total HTM securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Years Ended
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Net (losses) and gains recognized on equity securities
|
$
|
(
|
)
|
$
|
|
|||
Less: Net (losses) and gains recognized on equity securities sold during the period |
|
|
||||||
Unrealized (losses) and gains recognized on equity securities still held
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||
AFS debt securities:
|
||||||||
Within one year
|
$
|
|
$
|
|
||||
From one to five years
|
|
|
||||||
From five to ten years
|
|
|
||||||
After ten years
|
|
|
||||||
Total AFS debt securities
|
$
|
|
$
|
|
||||
HTM debt securities:
|
||||||||
Within one year
|
$
|
|
$
|
|
||||
From one to five years
|
|
|
||||||
From five to ten years
|
|
|
||||||
After ten years
|
|
|
||||||
Total HTM debt securities
|
$
|
|
$
|
|
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands)
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of
Positions
|
|||||||||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Federal agency
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|
|||||||||||||||||||||||||
State & municipal |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Mortgage-backed
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency
|
$
|
|
$
|
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
|||||||||||||||||||
Mortgage-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Collateralized mortgage obligations |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
State & municipal
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||||||||||||||
Federal agency
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||
State & municipal
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Mortgage-backed
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Corporate |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency |
$ | $ | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||||
Mortgage-backed
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
State & municipal
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
At December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Commercial & industrial
|
$
|
|
$
|
|
||||
Commercial real estate
|
|
|
||||||
Paycheck protection program
|
|
|
||||||
Residential real estate
|
|
|
||||||
Indirect auto
|
|
|
||||||
Residential solar
|
|
|
||||||
Home equity
|
|
|
||||||
Other consumer
|
|
|
||||||
Total loans
|
$
|
|
$
|
|
(In thousands)
|
2022
|
2021
|
||||||
Balance at January 1
|
$
|
|
$
|
|
||||
New loans
|
|
|
||||||
Adjustment due to change in composition of related parties
|
(
|
)
|
(
|
)
|
||||
Repayments
|
(
|
)
|
(
|
)
|
||||
Balance at December 31
|
$
|
|
$
|
|
(In thousands)
|
Commercial
Loans
|
Consumer
Loans
|
Residential
|
Total
|
||||||||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
|
|
(
|
)
|
|
|||||||||||
Ending
Balance as of December 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
||||||||||||||||
Balance as of December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Ending Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Balance as of January 1, 2020 (after adoption of ASC 326) | $ | $ | $ | $ | ||||||||||||
Charge-offs | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Recoveries | ||||||||||||||||
Provision | ||||||||||||||||
Ending Balance as of December 31, 2020 | $ | $ | $ | $ |
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than
90 Days
Past Due
Accruing
|
Total
Past Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total
Loans
|
|||||||||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
CRE
|
|
|
|
|
|
|
|
|||||||||||||||||||||
PPP
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Other consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than
90 Days
Past Due
Accruing
|
Total
Past Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total
Loans
|
|||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
CRE
|
|
|
|
|
|
|
|
|||||||||||||||||||||
PPP
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Other consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
PPP
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total PPP
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
PPP
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total PPP
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Year Ended December 31, 2022
|
Year Ended December 31, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Number of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Auto
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||
Total consumer loans
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||
Residential
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||
Total TDRs
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
Year Ended December 31,
2022
|
Year Ended December 31,
2021
|
Year Ended December 31,
2020
|
||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||
C&I
|
|
$
|
|
$ | $ | |||||||||||||||||||
CRE
|
|
|
||||||||||||||||||||||
Total commercial loans
|
|
$
|
|
$ | $ | |||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Auto
|
|
$
|
|
$ | $ | |||||||||||||||||||
Total consumer loans
|
|
$
|
|
$ | $ | |||||||||||||||||||
Residential
|
|
$
|
|
$ | $ | |||||||||||||||||||
Total TDRs
|
|
$
|
|
$ | $ |
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Land, buildings and improvements
|
$
|
|
$
|
|
||||
Furniture and equipment
|
|
|
||||||
Premises and equipment before accumulated depreciation
|
$
|
|
$
|
|
||||
Accumulated depreciation
|
|
|
||||||
Total premises and equipment
|
$
|
|
$
|
|
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Operating lease cost
|
$
|
|
$
|
|
||||
Variable lease cost
|
|
|
||||||
Short-term lease cost
|
|
|
||||||
Sublease income
|
(
|
)
|
(
|
)
|
||||
Total premises and equipment
|
$
|
|
$
|
|
(In thousands)
|
||||
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
December 31,
|
||||||||
(In thousands except for percent and period data)
|
2022
|
2021
|
||||||
Weighted average remaining lease term, in years
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
ROU assets obtained in exchange for lease liabilities
|
|
|
(In thousands)
|
||||
January 1, 2022
|
$
|
|
||
Goodwill acquired
|
|
|||
December 31, 2022
|
$
|
|
||
January 1, 2021
|
$
|
|
||
Goodwill acquired
|
|
|||
December 31, 2021
|
$
|
|
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Core deposit intangibles:
|
||||||||
Gross carrying amount
|
$
|
|
$
|
|
||||
Less: accumulated amortization
|
|
|
||||||
Net carrying amount
|
$
|
|
$
|
|
||||
Identified intangible assets:
|
||||||||
Gross carrying amount
|
$
|
|
$
|
|
||||
Less: accumulated amortization
|
|
|
||||||
Net carrying amount
|
$
|
|
$
|
|
||||
Total intangibles:
|
||||||||
Gross carrying amount
|
$
|
|
$
|
|
||||
Less: accumulated amortization
|
|
|
||||||
Net carrying amount
|
$
|
|
$
|
|
(In thousands)
|
December 31, 2022
|
|||
Within one year
|
$
|
|
||
After one but within two years
|
|
|||
After two but within three years
|
|
|||
After three but within four years
|
|
|||
After four but within five years
|
|
|||
After five years
|
|
|||
Total
|
$
|
|
December 31, |
||||||||||||
(Dollars in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Federal funds purchased:
|
||||||||||||
Balance at year-end
|
$
|
|
$
|
|
$
|
|
||||||
Average during the year
|
|
|
|
|||||||||
Maximum month end balance
|
|
|
|
|||||||||
Weighted average rate during the year
|
|
%
|
|
%
|
|
%
|
||||||
Weighted average rate at year-end
|
|
%
|
|
|
||||||||
Securities sold under repurchase agreements:
|
||||||||||||
Balance at year-end
|
$
|
|
$
|
|
$
|
|
||||||
Average during the year
|
|
|
|
|||||||||
Maximum month end balance
|
|
|
|
|||||||||
Weighted average rate during the year
|
|
%
|
|
%
|
|
%
|
||||||
Weighted average rate at year-end
|
|
%
|
|
%
|
|
%
|
||||||
Other short-term borrowings:
|
||||||||||||
Balance at year-end
|
$
|
|
$
|
|
$
|
|
||||||
Average during the year
|
|
|
|
|||||||||
Maximum month end balance
|
|
|
|
|||||||||
Weighted average rate during the year
|
|
%
|
|
%
|
|
%
|
||||||
Weighted average rate at year-end
|
|
%
|
|
|
%
|
(Dollars in thousands)
|
December 31, 2022
|
December 31, 2021
|
||||||||||||||
Maturity
|
Amount
|
Weighted
Average Rate
|
Amount
|
Weighted
Average Rate
|
||||||||||||
2022
|
$
|
-
|
-
|
$
|
|
|
%
|
|||||||||
2025
|
|
|
%
|
|
|
|||||||||||
2031
|
|
|
%
|
|
|
%
|
||||||||||
Total
|
$
|
|
$
|
|
(Dollars in thousands)
|
December 31, 2022 |
December 31,
2021
|
||||||
Subordinated notes issued June 2020 – fixed interest rate of
|
$ |
$
|
|
|||||
Unamortized debt issuance costs
|
( |
) |
(
|
)
|
||||
Total subordinated debt, net
|
$ |
$
|
|
Description
|
Issuance Date
|
Trust
Preferred
Securities
Outstanding
|
Interest Rate
|
Trust
Preferred
Debt Owed
To Trust
|
Final Maturity Date
|
||||||
CNBF Capital Trust I
|
|
$
|
|
plus
|
$
|
|
|
||||
NBT Statutory Trust I
|
|
|
plus
|
|
|
||||||
NBT Statutory Trust II
|
|
|
plus
|
|
|
||||||
Alliance Financial Capital Trust I
|
|
|
plus
|
|
|
||||||
Alliance Financial Capital Trust II
|
|
|
plus
|
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Current
|
||||||||||||
Federal
|
$
|
|
$
|
|
$
|
|
||||||
State
|
|
|
|
|||||||||
Total Current
|
$
|
|
$
|
|
$
|
|
||||||
Deferred
|
||||||||||||
Federal
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||
State
|
(
|
)
|
|
(
|
)
|
|||||||
Total Deferred
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||
Total income tax expense
|
$
|
|
$
|
|
$
|
|
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
|
$
|
|
||||
Lease liability
|
|
|
||||||
Deferred compensation
|
|
|
||||||
Loan fees
|
|
|
||||||
Stock-based compensation expense
|
|
|
||||||
Unrealized losses on securities |
||||||||
Other
|
|
|
||||||
Total deferred tax assets
|
$
|
|
$
|
|
||||
Deferred tax liabilities:
|
||||||||
Pension benefits
|
$
|
|
$
|
|
||||
Lease right-of-use asset
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Premises and equipment, primarily due to accelerated depreciation
|
|
|
||||||
Other
|
|
|
||||||
Total deferred tax liabilities
|
$
|
|
$
|
|
||||
Net deferred tax asset at year-end
|
$
|
|
$
|
|
||||
Net deferred tax asset at beginning of year
|
|
|
||||||
Increase in net deferred tax asset
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Federal income tax at statutory rate
|
$
|
|
$
|
|
$
|
|
||||||
Tax exempt income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net increase in cash surrender value of life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Federal tax credits
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
State taxes, net of federal tax benefit
|
|
|
|
|||||||||
Other, net
|
|
|
(
|
)
|
||||||||
Income tax expense
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2022
|
2021
|
||||||
Balance at January 1
|
$
|
|
$
|
|
||||
Additions for tax positions of prior years
|
|
|
||||||
Current period tax positions
|
|
|
||||||
Balance at December 31
|
$
|
|
$
|
|
||||
Amount that would affect the effective tax rate if recognized, gross of tax
|
$
|
|
$
|
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net actuarial loss (gain)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
Prior service cost (credit)
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Total amounts recognized in AOCI (pre-tax)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Change in benefit obligation:
|
||||||||||||||||
Benefit obligation at beginning of year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Service cost
|
|
|
|
|
||||||||||||
Interest cost
|
|
|
|
|
||||||||||||
Plan participants’ contributions
|
|
|
|
|
||||||||||||
Actuarial (gain) loss
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Benefits paid
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Projected benefit obligation at end of year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Change in plan assets:
|
||||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
(Loss) gain on plan assets
|
(
|
)
|
|
|
|
|||||||||||
Employer contributions
|
|
|
|
|
||||||||||||
Plan participants’ contributions
|
|
|
|
|
||||||||||||
Benefits paid
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Fair value of plan assets at end of year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Funded (unfunded) status at year end
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Other assets
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Funded status
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Years Ended December 31,
|
|||
2022
|
2021
|
2020
|
|
Weighted average assumptions:
|
|||
The following assumptions were used to determine benefit obligations:
|
|||
Discount rate
|
|
|
|
Expected long-term return on plan assets
|
|
|
|
Rate of compensation increase
|
|
|
|
Interest rate of credit for cash balance plan
|
|
|
|
The following
assumptions were used to determine net periodic pension cost:
|
|||
Discount rate
|
|
|
|
Expected long-term return on plan assets
|
|
|
|
Rate of compensation increase
|
|
|
|
Interest rate of credit for cash balance plan
|
|
|
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
||||||||||||||||||
Components of net periodic (benefit) cost:
|
||||||||||||||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Interest cost
|
|
|
|
|
|
|
||||||||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
|
|||||||||||||||
Additional gain due to curtailment
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Amortization of prior service cost
|
|
|
|
|
|
|
||||||||||||||||||
Amortization of unrecognized net loss
|
|
|
|
|
|
|
||||||||||||||||||
Net periodic pension (benefit) cost
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Other changes in plan assets and benefit obligations recognized in OCI (pre-tax):
|
||||||||||||||||||||||||
Net loss (gain)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||
Additional gain due to curtailment
|
|
|
|
|
|
|
||||||||||||||||||
Amortization of prior service cost
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Amortization of unrecognized net loss
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
|
|||||||||||||||
Total recognized in OCI
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||
Total recognized in net periodic cost (benefit) and OCI, pre-tax
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Pension
Benefits
|
Other
Benefits
|
||||||
2023
|
$
|
|
$
|
|
||||
2024
|
|
|
||||||
2025
|
|
|
||||||
2026
|
|
|
||||||
2027
|
|
|
||||||
2028 - 2032
|
|
|
Target 2022
|
2022
|
2021
|
|
Cash and cash equivalents
|
|
|
|
Fixed income securities
|
|
|
|
Equities
|
|
|
|
Total
|
|
|
(In thousands)
|
Level 1
|
Level 2
|
December 31,
2022
|
|||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Foreign equity mutual funds
|
|
|
|
|||||||||
Equity mutual funds
|
|
|
|
|||||||||
U.S. government bonds
|
|
|
|
|||||||||
Corporate bonds
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Level 1
|
Level 2
|
December 31,
2021
|
||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Foreign equity mutual funds
|
|
|
|
|||||||||
Equity mutual funds
|
|
|
|
|||||||||
U.S. government bonds
|
|
|
|
|||||||||
Corporate bonds
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
|
Number
of Shares
|
Weighted-
Average Grant
Date Fair Value
|
||||||
Unvested at January 1, 2022
|
|
$
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Vested
|
(
|
)
|
|
|||||
Granted
|
|
|
||||||
Unvested at December 31, 2022
|
|
$
|
|
(In thousands, except share and per share data)
|
Number
of Shares
|
Weighted
Average
Exercise Price
|
Weighted Average
Remaining
Contractual Term
(in Years)
|
Aggregate
Intrinsic
Value
|
||||||||||||
Outstanding at January 1, 2022
|
|
$
|
|
|||||||||||||
Exercised
|
|
|
||||||||||||||
Expired
|
|
|
||||||||||||||
Outstanding at December 31, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at December 31, 2022
|
|
$
|
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Proceeds from stock options exercised
|
$
|
|
$
|
|
$
|
|
||||||
Tax benefits related to stock options exercised
|
|
|
|
|||||||||
Intrinsic value of stock options exercised
|
|
|
|
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Unrecognized prior service cost and net actuarial (losses) on pension plans
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Unrealized (losses) on derivatives (cash flow hedges)
|
|
|
(
|
)
|
||||||||
Unrealized net holding (losses) gains on AFS securities
|
(
|
)
|
(
|
)
|
|
|||||||
AOCI
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Actual
|
Regulatory Ratio Requirements
|
|||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Minimum
Capital
Adequacy
|
Minimum
plus Buffer
|
For
Classification
as Well-
Capitalized
|
|||||||||||||||
As of December 31, 2022
|
||||||||||||||||||||
Tier I Capital (to average assets)
|
||||||||||||||||||||
Company
|
$
|
|
|
%
|
|
%
|
|
%
|
||||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|||||||||||||
Common Equity Tier 1 Capital
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
Tier I Capital (to risk-weighted assets)
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
As of December 31, 2021
|
||||||||||||||||||||
Tier I Capital (to average assets)
|
||||||||||||||||||||
Company
|
$
|
|
|
%
|
|
%
|
|
%
|
||||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|||||||||||||
Common Equity Tier 1 Capital
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
Tier I Capital (to risk-weighted assets)
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||
Company
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|||||||||||
NBT Bank
|
|
|
%
|
|
%
|
|
%
|
|
%
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||
(In thousands except per share data)
|
Net
Income
|
Weighted
Average
Shares
|
Per
Share
Amount
|
Net
Income
|
Weighted
Average
Shares
|
Per
Share
Amount
|
Net
Income
|
Weighted
Average
Shares
|
Per
Share
Amount
|
|||||||||||||||||||||||||||
Basic EPS
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
|||||||||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|||||||||||||||||||||||||||||||||
Diluted EPS
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
Detail About AOCI Components
|
Amount Reclassified From AOCI
|
Affected Line Item in the Consolidated
Statements of Comprehensive Income (Loss)
|
|||||||||||
(In thousands)
|
Years Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
|||||||||||
AFS securities:
|
|||||||||||||
(Gains) on AFS securities
|
$
|
|
$
|
|
$
|
(
|
)
|
Net securities (gains) losses
|
|||||
Amortization of unrealized gains related to securities transfer
|
|
|
|
Interest income
|
|||||||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
|||
Net of tax
|
$
|
|
$
|
|
$
|
|
|||||||
Cash flow hedges:
|
|||||||||||||
Net unrealized losses on cash flow hedges reclassified to interest expense
|
$
|
|
$
|
|
$
|
|
Interest expense
|
||||||
Tax effect
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
||||
Net of tax
|
$
|
|
$
|
|
$
|
|
|||||||
Pension and other benefits:
|
|||||||||||||
Amortization of net losses
|
$
|
|
$
|
|
$
|
|
Other noninterest expense
|
||||||
Amortization of prior service costs
|
|
|
|
Other noninterest expense
|
|||||||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
|||
Net of tax
|
$
|
|
$
|
|
$
|
|
|||||||
Total reclassifications, net of tax
|
$
|
|
$
|
|
$
|
|
At December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Unused lines of credit
|
$
|
|
$
|
|
||||
Commitments to extend credits, primarily variable rate
|
|
|
||||||
Standby letters of credit
|
|
|
||||||
Loans sold with recourse
|
|
|
(In thousands)
|
Notional
Amount
|
Balance
Sheet
Location
|
Fair
Value
|
Notional
Amount
|
Balance
Sheet
Location
|
Fair
Value
|
||||||||||||
As of December 31, 2022
|
||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Interest rate derivatives
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
||||||||
Risk participation agreements
|
|
Other assets
|
|
|
Other liabilities
|
|
||||||||||||
Total derivatives not designated as hedging instruments
|
$
|
|
$
|
|
||||||||||||||
Netting adjustments(1)
|
|
|
||||||||||||||||
Net derivatives in the balance sheet
|
$
|
|
$
|
|
||||||||||||||
Derivatives not offset on the balance sheet
|
$
|
|
$
|
|
||||||||||||||
Cash collateral(2)
|
|
|
||||||||||||||||
Net derivative amounts
|
$
|
|
$
|
|
||||||||||||||
As of December 31, 2021
|
||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||
Interest rate derivatives
|
$
|
|
|
$
|
|
$
|
|
|
$
|
|
||||||||
Risk participation agreements
|
|
Other assets
|
|
|
Other liabilities
|
|
||||||||||||
Total derivatives not designated as hedging instruments
|
$
|
|
$
|
|
||||||||||||||
Netting adjustments(1)
|
( |
) | ||||||||||||||||
Net derivatives in the balance sheet
|
$ |
$ |
||||||||||||||||
Derivatives not offset on the balance sheet
|
$ |
$ |
||||||||||||||||
Cash collateral(2)
|
|
|
||||||||||||||||
Net derivative amounts
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Derivatives designated as hedging instruments:
|
||||||||||||
Interest rate derivatives - included component
|
||||||||||||
Amount of loss recognized in OCI
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Amount of loss reclassified from AOCI into interest expense
|
|
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Derivatives not designated as hedging instruments:
|
||||||||||||
(Decrease) increase in other income
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
December 31,
2022
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities
|
||||||||||||||||
U.S. treasury | $ |
$ | $ | $ | ||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Derivatives
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
December 31,
2021
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities
|
||||||||||||||||
U.S. treasury
|
$ |
$ |
$ |
$ |
||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Corporate | ||||||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Derivatives
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
December 31, 2021
|
|||||||||||||||||||
(In thousands)
|
Fair Value
Hierarchy
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
HTM securities
|
2
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net loans
|
3
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
2
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Long-term debt
|
2
|
|
|
|
|
|||||||||||||||
Subordinated debt
|
1
|
|
|
|
|
|||||||||||||||
Junior subordinated debt
|
2
|
|
|
|
|
December 31,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Equity securities, at estimated fair value
|
|
|
||||||
Investment in subsidiaries, on equity basis
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Total liabilities
|
$
|
|
$
|
|
||||
Stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Dividends from subsidiaries
|
$
|
|
$
|
|
$
|
|
||||||
Management fee from subsidiaries
|
|
|
|
|||||||||
Net securities (losses) gains
|
(
|
)
|
|
(
|
)
|
|||||||
Interest, dividends and other income
|
|
|
|
|||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
||||||
Operating expenses
|
|
|
|
|||||||||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
$
|
|
$
|
|
$
|
|
||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Equity in undistributed income of subsidiaries
|
|
|
|
|||||||||
Net income
|
$
|
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||||||
(In thousands)
|
2022
|
2021
|
2020
|
|||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||
Depreciation and amortization of premises and equipment
|
|
|
|
|||||||||
Excess tax benefit on stock-based compensation
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Stock-based compensation expense
|
|
|
|
|||||||||
Net securities losses (gains)
|
|
(
|
)
|
|
||||||||
Equity in undistributed income of subsidiaries
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Bank owned life insurance income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Amortization of subordinated debt issuance costs
|
|
|
|
|||||||||
Discount on repurchase of subordinated debt |
( |
) | ||||||||||
Net change in other assets and other liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash provided by operating activities
|
$
|
|
$
|
|
$
|
|
||||||
Investing activities
|
||||||||||||
Investment in the Bank
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Proceeds from calls of equity securities
|
|
|
|
|||||||||
Net cash provided by (used in) investing activities
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Financing activities
|
||||||||||||
Proceeds from issuance of subordinated debt
|
$
|
|
$
|
|
$
|
|
||||||
Payment of subordinated debt issuance costs
|
|
|
(
|
)
|
||||||||
Repurchase of subordinated debt |
( |
) | ||||||||||
Proceeds from the issuance of shares to employee and other stock plans
|
|
|
|
|||||||||
Cash paid by employer for tax-withholding on stock issuance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Purchases of treasury shares
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash dividends
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash (used in) provided by financing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
Net increase in cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Cash and cash equivalents at beginning of year
|
|
|
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
$
|
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
ITEM 9B. |
OTHER INFORMATION
|
ITEM 9C. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
|
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. |
EXECUTIVE COMPENSATION
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan Category
|
A. Number of
securities to be
issued upon exercise
of outstanding
options, warrants
and rights
|
B. Weighted-
average exercise
price of
outstanding
options, warrants
and rights
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column A)
|
|||||||||
Equity compensation plans approved by stockholders
|
9,100
|
$
|
29.89
|
384,182
|
||||||||
Equity compensation plans not approved by stockholders
|
None
|
None
|
None
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Agreement and Plan of Merger, dated as of December 5, 2022, by and among NBT Bancorp Inc., NBT Bank, N.A.,
Salisbury Bancorp, Inc. and Salisbury Bank and Trust Company (filed as Exhibit 2.1 to Registrant’s Form 8-K, filed on December 5, 2022, and incorporated herein by reference).
|
|
Restated Certificate of Incorporation of NBT Bancorp Inc. as amended through July 1, 2015 (filed as Exhibit 3.1 to Registrant’s Form 10-Q, filed on August 10, 2015, and incorporated herein by reference).
|
|
Amended and Restated Bylaws of NBT Bancorp Inc. effective May 22, 2018 (filed as
Exhibit 3.1 to Registrant’s Form 8-K, filed on May 23, 2018 and incorporated herein by reference).
|
|
Certificate of Designation of the Series A Junior Participating Preferred Stock (filed
as Exhibit A to Exhibit 4.1 of the Registrant’s Form 8-K, filed on November 18, 2004, and incorporated herein by reference).
|
|
Specimen common stock certificate for NBT’s Bancorp Inc. common stock (filed
as Exhibit 4.3 to the Registrant’s Amendment No. 1 to Registration Statement on Form S-4, filed on December 27, 2005, and incorporated herein by reference).
|
|
Description of Registrant’s Securities (filed as Exhibit 4.2 to the Registrant’s Form
10-K for the year ended December 31, 2019, filed on March 2, 2020, and incorporated herein by reference).
|
|
Subordinated Indenture, dated as of June 23, 2020, between NBT Bancorp
Inc. and U.S. Bank National Association (filed as Exhibit 4.1 to Registrant’s Form 8-K, filed on June 23, 2020 and incorporated herein by reference).
|
|
First Supplemental Indenture, dated as of June 23, 2020, between NBT
Bancorp Inc. and U.S. Bank National Association (filed as Exhibit 4.2 to Registrant’s Form 8-K, filed on June 23, 2020 and incorporated herein by reference).
|
|
Form of 5.000% Fixed-to-Floating Rate Subordinated Notes due 2030
(included in Exhibit 4.4).
|
|
NBT Bancorp Inc. Non-employee Directors Restricted and Deferred Stock Plan (filed as
Exhibit 10.5 to Registrant’s Form 10-K for the year ended December 31, 2008, filed on March 2, 2009, and incorporated herein by reference).*
|
|
Supplemental Executive Retirement Agreement between NBT Bancorp Inc. and Martin A. Dietrich as amended and restated
January 20, 2010 (filed as Exhibit 10.14 to Registrant’s Form 10-K for the year ended December 31, 2009, filed on March 1, 2010, and incorporated herein by reference).*
|
|
Split-Dollar Agreement between NBT Bancorp Inc., NBT Bank, National Association and Martin A. Dietrich made November
10, 2008 (filed as Exhibit 10.1 to Registrant’s Form 10-Q for the quarterly period ended September 30, 2008, filed on November 10, 2008, and incorporated herein by reference).*
|
|
First Amendment dated November 5, 2009 to Split-Dollar Agreement between NBT Bancorp Inc., NBT Bank, National
Association and Martin A. Dietrich made November 10, 2008 (filed as Exhibit 10.6 to Registrant’s Form 10-Q for the quarterly period ended September 30, 2009, filed on November 9, 2009, and incorporated
herein by reference).*
|
|
Second Amendment dated July 28, 2014 to Split-Dollar Agreement between NBT Bancorp Inc., NBT Bank, National
Association, and Martin A. Dietrich made November 10, 2008 (filed as Exhibit 10.1 to Registrant’s Form 8-K, filed on August 1, 2014, and incorporated herein by reference).*
|
|
NBT Bancorp Inc. 2008 Omnibus Incentive Plan (filed as Appendix A of Registrant’s
Definitive Proxy Statement on Form 14A, filed on March 31, 2008, and incorporated herein by reference).*
|
Long-Term Incentive Compensation Plan for Named Executive Officers (filed as Exhibit
10.24 to Registrant’s Form 10-K for the year ended December 31, 2011, filed on February 29, 2012, and incorporated herein by reference).*
|
|
Amended and Restated Supplemental Retirement Agreement and First Amendment to the Supplemental Retirement Agreement
between Alliance Financial Corporation, Alliance Bank, N.A. and Jack H. Webb (filed as Exhibit 10.29 to Registrant’s Form 10-K for the year ended December 31, 2013, filed on March 3, 2014, and
incorporated herein by reference).*
|
|
Employment Agreement, dated December 19, 2016, by and between NBT Bancorp Inc. and John H. Watt, Jr. (filed as Exhibit 10.1 to Registrant’s Form 8-K, filed on December 20, 2016, and incorporated herein by reference).*
|
|
Split-Dollar Agreement between NBT Bancorp Inc., NBT Bank, National Association and John H. Watt, Jr. dated May 9, 2017 (filed as Exhibit 10.1 to Registrant’s Form 10-Q, filed on May 10, 2017, and incorporated herein by reference).*
|
|
Supplemental Executive Retirement Agreement, dated December 19, 2016 by and between NBT Bancorp Inc. and John H.
Watt, Jr. (filed as Exhibit 10.2 to Registrant’s Form 8-K, filed on December 20, 2016, and incorporated herein by reference).*
|
|
Employment Agreement, dated December 19, 2016, by and between NBT Bancorp Inc. and Joseph R. Stagliano (Filed as Exhibit 10.19 to Registrant’s Form 10-K, filed on March 1, 2018, and incorporated herein by reference).*
|
|
Employment Agreement, dated August 5, 2021 by and between NBT Bancorp Inc. and Scott A. Kingsley (Filed as Exhibit 10.1 to Registrant’s Form 10-Q, filed on August 6, 2021, and incorporated herein by reference).*
|
|
Form of Amendment to Employment Agreements, dated September 27, 2017, by and between NBT Bancorp Inc. and John H. Watt,
Jr. and Joseph R. Stagliano, respectively (Filed as Exhibit 10.1 to Registrant’s Form 8-K, filed on September 29, 2017, and incorporated herein by reference).*
|
|
NBT Bancorp Inc. 2018 Omnibus Incentive Plan (filed as Appendix A of Registrant’s
Definitive Proxy Statement on Form 14A, filed on April 6, 2018, and incorporated herein by reference).*
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
* |
Management contract or compensatory plan or arrangement.
|
(b) |
Exhibits to this Form 10-K are attached or incorporated herein by reference as noted above.
|
(c) |
Not applicable.
|
ITEM 16. |
FORM 10-K SUMMARY
|
/s/ John H. Watt, Jr.
|
|
John H. Watt, Jr.
|
|
Chief Executive Officer
|
/s/ Martin A. Dietrich
|
/s/ Heidi M. Hoeller
|
|
Martin A. Dietrich
|
Heidi M. Hoeller, Director
|
|
Chairman and Director
|
Date: March 1, 2023
|
|
Date: March 1, 2023
|
/s/ John H. Watt, Jr.
|
/s/ Andrew S. Kowalczyk III
|
|
John H. Watt, Jr.
|
Andrew S. Kowalczyk III, Director
|
|
President, Chief Executive Officer and Director
(Principal Executive Officer)
|
Date: March 1, 2023
|
|
Date: March 1, 2023
|
/s/ Scott A. Kingsley
|
/s/ V. Daniel Robinson II
|
|
Scott A. Kingsley
|
V. Daniel Robinson II, Director
|
|
Chief Financial Officer
|
Date: March 1, 2023
|
|
(Principal Financial Officer)
|
||
Date: March 1, 2023
|
/s/ Annette L. Burns
|
/s/ Matthew J. Salanger
|
|
Annette L. Burns
|
Matthew J. Salanger, Director
|
|
Chief Accounting Officer
|
Date: March 1, 2023
|
|
(Principal Accounting Officer)
|
||
Date: March 1, 2023
|
/s/ Johanna R. Ames
|
/s/ Joseph A. Santangelo
|
|
Johanna R. Ames, Director
|
Joseph A. Santangelo, Director
|
|
Date: March 1, 2023
|
Date: March 1, 2023
|
/s/ J. David Brown
|
/s/ Lowell A. Seifter
|
|
J. David Brown, Director
|
Lowell A. Seifter, Director
|
|
Date: March 1, 2023
|
Date: March 1, 2023
|
/s/ Timothy E. Delaney
|
/s/ Jack H. Webb
|
|
Timothy E. Delaney, Director
|
Jack H. Webb, Director
|
|
Date: March 1, 2023
|
Date: March 1, 2023
|
/s/ James H. Douglas
|
||
James H. Douglas, Director
|
||
Date: March 1, 2023
|
NBT BANCORP INC.
|
||
By:
|
|
|
Name:
|
John H. Watt, Jr.
|
|
Title:
|
President & Chief Executive Officer
|
EXECUTIVE
|
|
|
|
Ruth H. Mahoney
|
Date | |||
Ruth H. Mahoney
|
STATE OF NEW YORK
|
)
|
: ss.:
|
|
COUNTY OF
|
)
|
Notary Public
|
NBT BANCORP INC.
|
||||
By:
|
Date:
|
|||
Title:
|
NBT BANCORP INC.
|
By:
|
||
Name:
|
John H. Watt, Jr
|
|
Title:
|
President & Chief Executive Officer
|
EXECUTIVE
|
|
M. Randolph Sparks
|
Date | |||
M. Randolph Sparks
|
STATE OF NEW YORK
|
)
|
: ss.:
|
|
COUNTY OF
|
)
|
Notary Public
|
NBT BANCORP INC. | ||||
By:
|
Date:
|
|||
Title:
|
Jurisdiction of
Incorporation
|
Names Under Which
Subsidiary does Business
|
|||
NBT Bancorp Inc. Subsidiaries:
|
||||
NBT Bank, National Association
|
Organized in the United States of America
|
NBT Bank
|
||
NBT Financial Services, Inc.
|
Delaware
|
NBT Financial Services
|
||
CNBF Capital Trust I
|
Delaware
|
CNBF Capital Trust I
|
||
NBT Statutory Trust I
|
Delaware
|
NBT Statutory Trust I
|
||
NBT Statutory Trust II
|
Delaware
|
NBT Statutory Trust II
|
||
NBT Holdings, Inc.
|
New York
|
NBT Holdings
|
||
Alliance Financial Capital Trust I
|
Delaware
|
Alliance Financial Capital Trust I
|
||
Alliance Financial Capital Trust II
|
Delaware
|
Alliance Financial Capital Trust II
|
||
NBT Bank, National Association Subsidiaries:
|
||||
NBT Capital Corp.
|
New York
|
NBT Capital Corp
|
||
NBT Capital Management, Inc.
|
New York
|
NBT Capital Management
|
||
Broad Street Property Associates, Inc.
|
New York
|
Broad Street Property Associates
|
||
FNB Financial Services, Inc.
|
Delaware
|
FNB Financial Services
|
||
NBT Financial Services, Inc. Subsidiaries:
|
||||
Pennstar Financial Services, Inc.
|
Pennsylvania
|
Pennstar Financial Services
|
||
EPIC Advisors, Inc.
|
New York
|
EPIC Retirement Plan Services
|
||
NBT Holdings, Inc. Subsidiaries:
|
||||
NBT Insurance Agency, LLC
|
New York
|
NBT Insurance Agency
|
By:
|
/s/ John H. Watt, Jr.
|
|
John H. Watt, Jr.
|
||
Chief Executive Officer
|
By:
|
/s/ Scott A. Kingsley
|
|
Scott A. Kingsley
|
||
Chief Financial Officer
|
/s/ John H. Watt, Jr.
|
||
John H. Watt, Jr.
|
||
Chief Executive Officer
|
||
March 1, 2023
|
/s/ Scott A. Kingsley
|
||
Scott A. Kingsley
|
||
Chief Financial Officer
|
||
March 1, 2023
|