UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549



FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2023



NBT BANCORP INC.
(Exact name of registrant as specified in its charter)

Delaware
000-14703
16-1268674
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)

52 South Broad Street, Norwich, New York 13815
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (607) 337-2265

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of class

Trading Symbol

Name of exchange on which registered
Common Stock, par value $0.01 per share
 
NBTB
 
The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02
Results of Operations and Financial Condition

On July 31, 2023, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended June 30, 2023. That press release is furnished as Exhibit 99.1 hereto. A conference call will be held at 8:30 a.m. Eastern Time on Tuesday, August 1, 2023, to review the second quarter 2023 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Event Calendar page of the Company’s website at www.nbtbancorp.com.
 
Item 9.01
Financial Statements and Exhibits.
 
(a)
Not applicable.
 
(b)
Not applicable.
 
(c)
Not applicable.
 
(d)
Exhibits.
 
Exhibit No.
 
Description
     
 
Press release of NBT Bancorp Inc. July 31, 2023
     
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)
  

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
NBT BANCORP INC.
     
Date: July 31, 2023
By:
/s/ Scott A. Kingsley
   
Scott A. Kingsley
   
Executive Vice President and Chief Financial Officer



Exhibit 99.1

FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS


Contact:
John H. Watt, Jr., President and CEO
Scott A. Kingsley, Executive Vice President and CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6589

NBT BANCORP INC. ANNOUNCES SECOND QUARTER NET INCOME OF $30.1 MILLION ($0.70 PER DILUTED COMMON SHARE)

NORWICH, NY (July 31, 2023) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2023.
 
Net income for the three months ended June 30, 2023 was $30.1 million, or $0.70 per diluted common share, compared to $37.8 million, or $0.88 per diluted share, for the three months ended June 30, 2022, and $33.7 million, or $0.78 per diluted share, in the first quarter of 2023.
 

Excluding the impact of securities losses and acquisition expenses, the Company generated $0.80 per diluted share of earnings in the second quarter of 2023, compared to $0.89 per share in the second quarter of 2022 and $0.88 per share in the first quarter of 2023. Net interest income was impacted on a linked quarter basis from the continuation of higher funding costs.

In the second quarter of 2023, the Company realized $4.5 million ($0.08 per diluted share) in securities losses. In the first quarter of 2023, the Company realized a $5.0 million ($0.09 per diluted share) securities loss.

The Company incurred acquisition expenses of $1.2 million ($0.02 per diluted share) and $0.6 million ($0.01 per diluted share) related to the pending merger with Salisbury Bancorp, Inc. (“Salisbury”) in the second quarter of 2023 and the first quarter of 2023, respectively.

Period end total loans increased $208.0 million from December 31, 2022, or 5.1% annualized.

CEO Comments

“We delivered solid operating performance for the second quarter and the first half of 2023. Our results reflect the ongoing focus on our long-term strategies, the strength of our balance sheet and our diversified business model,” said NBT President and CEO John H. Watt, Jr. “We grew loans in all our core portfolios in the second quarter, and our funding sources remained resilient. Our credit performance remained consistent and favorable, and we continued to grow capital. We were also very pleased to have received all the regulatory and shareholder approvals required to proceed with our planned combination with Salisbury Bancorp. We expect the merger to close on August 11, 2023. Our integration team with representatives from NBT and Salisbury has worked diligently to ensure the best possible customer experience upon the conversion of Salisbury customer relationships,” said Watt.
 

2
Second Quarter Financial Highlights
 
Net Income
 ◾       Net income of $30.1 million
 ◾       Diluted earnings per share of $0.70
 ◾       Excluding acquisition expenses and securities losses, diluted earnings per share of $0.80
Net Interest Income / NIM
 ◾       Net interest income on a fully taxable equivalent (“FTE”) basis was $89.5 million1
 ◾       Net interest margin (“NIM”) on an FTE basis was 3.27%1, down 28 basis points (“bps”) from the prior quarter
 ◾       Earning asset yields of 4.42%, up 16 bps from the prior quarter
 ◾       Total cost of funds of 1.22%, up 47 bps from the prior quarter
Noninterest Income
 ◾       Excluding securities losses, noninterest income was $36.7 million and was 29.2% of total revenue
Loans and Credit Quality
 ◾       Period end total loans of $8.36 billion as of June 30, 2023, up $208.0 million, or 5.1%, annualized, from December 31, 2022
 ◾       Net charge-offs to average loans were 0.17%, annualized
 ◾       Nonperforming loans to total loans was 0.24%, compared to 0.23% in the prior quarter and down from 0.33% in the second quarter of 2022
 ◾       Allowance for loan losses to total loans of 1.20%
Deposits
 ◾       Deposits were $9.53 billion as of June 30, 2023, up $34.0 million, or 0.4%, from December 31, 2022
 ◾       Total cost of deposits was 0.85% for the second quarter of 2023, up 38 bps from the prior quarter
 ◾       Full cycle to-date deposit beta of 17%
 ◾       Deposit composition is diverse and granular with over 523,000 accounts with an average per account balance of $18,202
Capital
 ◾       Stockholders’ equity was $1.21 billion as of June 30, 2023
 ◾       Tangible book value per share2 was $21.55 at June 30, 2023, consistent with the first quarter of 2023 and 2.7% higher than the second quarter of 2022
 ◾       Tangible equity to assets of 7.95%1
 ◾       CET1 ratio of 12.29%; Leverage ratio of 10.51%

Loans


Period end total loans were $8.36 billion at June 30, 2023, $8.26 billion at March 31, 2023 and $8.15 billion at December 31, 2022.

Period end loans increased $208.0 million from December 31, 2022. Commercial and industrial loans increased $53.1 million to $1.32 billion; commercial real estate loans increased $76.3 million to $2.88 billion; and total consumer loans increased $78.6 million to $4.15 billion. Included in total consumer loans is $158 million of a portfolio of loans in a run-off status.

Commercial line of credit utilization rate was 23% at June 30, 2023, compared to 22% at March 31, 2023 and 23% at June 30, 2022.

Deposits


Total deposits at June 30, 2023 were $9.53 billion, compared to $9.50 billion at December 31, 2022. The Company continues to experience migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.

Loan to deposit ratio was 87.7% at June 30, 2023, compared to 85.8% at December 31, 2022.


3
Net Interest Income and Net Interest Margin
 

Net interest income for the second quarter of 2023 was $89.1 million, which was down $6.0 million, or 6.3%, from the first quarter of 2023 and up $1.5 million, or 1.7%, from the second quarter of 2022.

The NIM on an FTE basis for the second quarter of 2023 was 3.27%, down 28 bps from the first quarter of 2023 driven by the increase in the cost of interest-bearing deposits, as well as a $200.6 million increase in the average balance of short-term borrowings and a 31 bp increase on the rates paid on those borrowings. The NIM on an FTE basis was up 6 bps from the second quarter of 2022 due to higher earning asset yields partially offset by the increase in the cost of interest-bearing deposits, as well as higher balances in short-term borrowings and the rates paid on those borrowings.

Earning asset yields for the three months ended June 30, 2023 were up 16 bps from the prior quarter to 5.17% and up 107 bps from the same quarter in the prior year. Earning assets grew $73.4 million, or 0.7%, from the first quarter of 2023, or 2.7% annualized.

Total cost of deposits, including noninterest bearing deposits, was 0.85% for the second quarter of 2023, up 38 bps from the prior quarter and up 78 bps from the same period in the prior year.

Total cost of funds for the three months ended June 30, 2023 was 1.22%, up 47 bps from the prior quarter and up 107 bps from the second quarter of 2022.

Asset Quality and Allowance for Loan Losses


Net charge-offs to total average loans was 17 bps compared to 19 bps in the prior quarter and 4 bps in the second quarter of 2022. The increase in net charge-offs from the second quarter of 2022 was due to an increase in charge-offs in the Company’s other consumer portfolio, which is in a run-off status. Net charge-offs for the portfolios in a run-off status represented 68% of total net charge-offs.

Nonperforming assets to total assets were 0.17% at June 30, 2023, compared to 0.16% at March 31, 2023 and 0.22% at June 30, 2022.

Provision expense for the three months ended June 30, 2023 was $3.6 million, compared to $3.9 million for the first quarter of 2023 and $4.4 million for the second quarter of 2022.

The allowance for loan losses was $100.4 million, or 1.20% of total loans, at June 30, 2023, compared to 1.21% of total loans at March 31, 2023 and 1.20% of total loans at June 30, 2022. The reserve for unfunded loan commitments decreased to $4.4 million at June 30, 2023 compared to the prior quarter-end at $4.5 million and to $5.1 million at June 30, 2022.

Noninterest Income
 

Total noninterest income, excluding securities losses, was $36.7 million for the three months ended June 30, 2023, up $0.3 million from the first quarter and down $5.6 million from the prior year’s second quarter.

Card services income increased $0.3 million from the prior quarter and decreased $4.6 million from the second quarter of 2022 primarily driven by the impact on debit interchange revenues from the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act which the Company became subject to in the third quarter of 2022.

Retirement plan administration fees were up $0.3 million from the prior quarter and were $0.9 million lower than the second quarter of 2022 driven by a decrease in activity-based fees which were primarily statutory plan document restatements.

In the second quarter of 2023, the Company incurred a $4.5 million ($0.08 per diluted share) securities loss on the sale of two subordinated debt securities held in the AFS portfolio. In the first quarter of 2023, the Company recorded a $5.0 million ($0.09 per diluted share) securities loss related to the write-off of a subordinated debt security of a failed bank.


4
Noninterest Expense


Total noninterest expense, excluding $1.2 million of acquisition expenses in the second quarter of 2023 and $0.6 million in the first quarter of 2023, decreased 1.4% compared to the previous quarter and increased 2.0% from the second quarter of 2022.

Salaries and benefits decreased 2.7% from the prior quarter driven by seasonally higher payroll taxes and higher stock-based compensation expenses in the first quarter along with a lower level of incentive compensation in the second quarter. These decreases were partially offset by a full quarter of merit pay increases and higher health and welfare benefits.

Technology and data services expenses increased over the prior quarter and from the second quarter of 2022 due to continued investment in digital platform solutions.

Occupancy costs decreased from the prior quarter due to lower seasonal maintenance, equipment costs and utilities and increased from the second quarter of 2022 driven by higher utilities, rent and seasonal maintenance costs.

FDIC assessment expense was comparable to the prior quarter and increased $0.5 million ($0.01 per diluted share) from the second quarter of 2022 driven by the statutory increase in the FDIC assessment rate.

Income Taxes


The effective tax rate was 22.4% for the second quarter of 2023, compared to 22.2% for the first quarter of 2023 and 22.5% for the second quarter of 2022.

Capital


Capital ratios are strong with tangible common equity to tangible assets1 at 7.95%. Tangible book value per share2 was $21.55 at June 30, 2023, $21.52 at March 31, 2023 and $20.99 at June 30, 2022.

Stockholders’ equity increased $36.9 million from December 31, 2022 driven by net income generation of $63.7 million, partially offset by dividends declared of $25.7 million and the repurchase of common stock of $2.8 million.

June 30, 2023, CET1 capital ratio of 12.29%, leverage ratio of 10.51% and total risk-based capital ratio of 15.50%.

Stock Repurchase


The Company purchased 87,000 shares of its common stock in the second quarter of 2023 at an average price of $31.94 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of June 30, 2023, there were 1,513,000 shares available for repurchase under this plan authorized on December 20, 2021 and set to expire on December 31, 2023.

Salisbury Bancorp, Inc. Merger


On July 10, 2023, NBT announced it has received the requisite regulatory approvals and waivers from the Office of the Comptroller of the Currency, the Connecticut State Banking Department and the Federal Reserve Bank of New York necessary to complete its acquisition of Salisbury. NBT and Salisbury anticipate closing the transaction on August 11, 2023, subject to the satisfaction of customary closing conditions. A weekend systems conversion will follow with locations of Salisbury Bank opening as NBT Bank offices on August 14, 2023. Salisbury is a Connecticut-chartered commercial bank with 13 banking offices in northwestern Connecticut, the Hudson Valley region of New York, and southwestern Massachusetts. Salisbury had assets of $1.56 billion, deposits of $1.36 billion and net loans of $1.24 billion as of June 30, 2023.


5
Other Events

 
On July 1, 2023, the Company’s subsidiary national benefits administration firm, EPIC Retirement Plan Services (“EPIC RPS”), completed an asset purchase of Retirement Direct, LLC, based near Charlotte, NC. Retirement Direct served more than 500 qualified and nonqualified retirement plans and had over $2 billion in client assets under management. EPIC RPS has a client base that spans all 50 states and now supports over 5,000 retirement plans with more than 300,000 plan participants.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, August 1, 2023, to review second quarter 2023 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.
 
Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.89 billion at June 30, 2023. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements
 
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the businesses of NBT and Salisbury may not be combined successfully; (14) the possibility that NBT and Salisbury may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Salisbury’s operations and those of NBT; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) changes in the Company’s organization, compensation and benefit plans; (20) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) the Company’s success at managing the risks involved in the foregoing items.


6
The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.


7
NBT Bancorp Inc. and Subsidiaries
                             
Selected Financial Data
                             
(unaudited, dollars in thousands except per share data)
                   
                               
   
2023
   
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Profitability:
                             
Diluted earnings per share
 
$
0.70
   
$
0.78
   
$
0.84
   
$
0.90
   
$
0.88
 
Weighted average diluted common shares outstanding
   
43,126,498
     
43,125,986
     
43,144,666
     
43,110,932
     
43,092,851
 
Return on average assets3
   
1.02
%
   
1.16
%
   
1.23
%
   
1.33
%
   
1.28
%
Return on average equity3
   
9.91
%
   
11.47
%
   
12.30
%
   
12.87
%
   
12.73
%
Return on average tangible common equity1 3
   
13.13
%
   
15.31
%
   
16.54
%
   
17.12
%
   
17.00
%
Net interest margin1 3
   
3.27
%
   
3.55
%
   
3.68
%
   
3.51
%
   
3.21
%
                                         
   
6 Months Ended June 30,
                         
     
2023
     
2022
                         
Profitability:
                                       
Diluted earnings per share
 
$
1.48
   
$
1.78
                         
Weighted average diluted common shares outstanding
   
43,129,259
     
43,238,248
                         
Return on average assets
   
1.09
%
   
1.30
%
                       
Return on average equity
   
10.68
%
   
12.76
%
                       
Return on average tangible common equity1
   
14.20
%
   
16.93
%
                       
Net interest margin1
   
3.41
%
   
3.08
%
                       
                                         
   
2023
     
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Balance sheet data:
                                       
Short-term interest-bearing accounts
 
$
31,878
   
$
68,045
   
$
30,862
   
$
97,303
   
$
328,593
 
Securities available for sale
   
1,453,926
     
1,512,008
     
1,527,225
     
1,556,501
     
1,619,356
 
Securities held to maturity
   
912,876
     
906,824
     
919,517
     
929,541
     
936,512
 
Net loans
   
8,257,724
     
8,164,328
     
8,049,347
     
7,807,984
     
7,684,081
 
Total assets
   
11,890,497
     
11,839,730
     
11,739,296
     
11,640,742
     
11,720,459
 
Total deposits
   
9,529,919
     
9,681,205
     
9,495,933
     
9,918,751
     
10,028,708
 
Total borrowings
   
880,518
     
703,248
     
787,950
     
277,889
     
265,796
 
Total liabilities
   
10,680,004
     
10,628,071
     
10,565,742
     
10,484,196
     
10,531,903
 
Stockholders’ equity
   
1,210,493
     
1,211,659
     
1,173,554
     
1,156,546
     
1,188,556
 
                                         
Capital:
                                       
Equity to assets
   
10.18
%
   
10.23
%
   
10.00
%
   
9.94
%
   
10.14
%
Tangible equity ratio1
   
7.95
%
   
7.99
%
   
7.73
%
   
7.64
%
   
7.87
%
Book value per share
 
$
28.26
   
$
28.24
   
$
27.38
   
$
27.00
   
$
27.75
 
Tangible book value per share2
 
$
21.55
   
$
21.52
   
$
20.65
   
$
20.25
   
$
20.99
 
Leverage ratio
   
10.51
%
   
10.43
%
   
10.32
%
   
10.21
%
   
9.77
%
Common equity tier 1 capital ratio
   
12.29
%
   
12.28
%
   
12.12
%
   
12.17
%
   
12.14
%
Tier 1 capital ratio
   
13.35
%
   
13.34
%
   
13.19
%
   
13.27
%
   
13.27
%
Total risk-based capital ratio
   
15.50
%
   
15.53
%
   
15.38
%
   
15.50
%
   
15.50
%
Common stock price (end of period)
 
$
31.85
   
$
33.71
   
$
43.42
   
$
37.95
   
$
37.59
 


8
NBT Bancorp Inc. and Subsidiaries
                             
Asset Quality and Consolidated Loan Balances
                             
(unaudited, dollars in thousands)
                             
 
                             
 
 
2023
   
2022
 
 
 
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Asset quality:
                             
Nonaccrual loans
 
$
16,931
   
$
16,284
   
$
17,233
   
$
19,098
   
$
23,673
 
90 days past due and still accruing
   
2,755
     
2,328
     
3,823
     
2,732
     
2,096
 
Total nonperforming loans
   
19,686
     
18,612
     
21,056
     
21,830
     
25,769
 
Other real estate owned
   
179
     
105
     
105
     
-
     
-
 
Total nonperforming assets
   
19,865
     
18,717
     
21,161
     
21,830
     
25,769
 
Allowance for loan losses
   
100,400
     
100,250
     
100,800
     
96,800
     
93,600
 
 
                                       
Asset quality ratios:
                                       
Allowance for loan losses to total loans
   
1.20
%
   
1.21
%
   
1.24
%
   
1.22
%
   
1.20
%
Total nonperforming loans to total loans
   
0.24
%
   
0.23
%
   
0.26
%
   
0.28
%
   
0.33
%
Total nonperforming assets to total assets
   
0.17
%
   
0.16
%
   
0.18
%
   
0.19
%
   
0.22
%
Allowance for loan losses to total nonperforming loans
   
510.01
%
   
538.63
%
   
478.72
%
   
443.43
%
   
363.23
%
Past due loans to total loans4
   
0.45
%
   
0.30
%
   
0.33
%
   
0.30
%
   
0.40
%
Net charge-offs to average loans3
   
0.17
%
   
0.19
%
   
0.18
%
   
0.07
%
   
0.04
%
 
                                       
 
   
2023
     
2022
 
 
 
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Loan net charge-offs by line of business:
                                       
Commercial & industrial
 
$
51
   
$
(294
)
 
$
(45
)
 
$
(1,045
)
 
$
(298
)
Commercial real estate
   
41
     
42
     
8
     
324
     
(246
)
Residential real estate and home equity
   
(43
)
   
80
     
(79
)
   
(56
)
   
(210
)
Indirect auto
   
273
     
423
     
445
     
222
     
163
 
Residential solar
   
581
     
656
     
596
     
43
     
153
 
Other consumer
   
2,553
     
2,904
     
2,752
     
1,796
     
1,228
 
Total loan net charge-offs
 
$
3,456
   
$
3,811
   
$
3,677
   
$
1,284
   
$
790
 
 
                                       
 
   
2023
     
2022
 
 
 
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Allowance for loan losses as a percentage of loans by segment:
                                 
Commercial & industrial
   
0.86
%
   
0.85
%
   
0.82
%
   
0.80
%
   
0.74
%
Commercial real estate
   
0.93
%
   
0.93
%
   
0.91
%
   
0.88
%
   
0.89
%
Residential real estate
   
0.73
%
   
0.73
%
   
0.72
%
   
0.74
%
   
0.79
%
Auto
   
0.80
%
   
0.77
%
   
0.81
%
   
0.78
%
   
0.79
%
Residential solar
   
3.09
%
   
3.04
%
   
3.21
%
   
3.08
%
   
3.00
%
Other consumer
   
5.98
%
   
6.19
%
   
6.27
%
   
6.67
%
   
6.19
%
Total
   
1.20
%
   
1.21
%
   
1.24
%
   
1.22
%
   
1.20
%
 
                                       
 
   
2023
     
2022
 
 
 
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Loans by line of business:
                                       
Commercial & industrial
 
$
1,318,340
   
$
1,277,446
   
$
1,265,082
   
$
1,258,871
   
$
1,298,072
 
Commercial real estate
   
2,884,264
     
2,845,631
     
2,807,941
     
2,724,728
     
2,670,633
 
Paycheck protection program
   
753
     
845
     
949
     
3,328
     
17,286
 
Residential real estate
   
1,666,204
     
1,651,918
     
1,649,870
     
1,626,528
     
1,606,188
 
Indirect auto
   
1,048,739
     
1,031,315
     
989,587
     
952,757
     
936,516
 
Residential solar
   
926,365
     
920,084
     
856,798
     
728,898
     
599,565
 
Home equity
   
310,897
     
308,219
     
314,124
     
313,557
     
313,395
 
Other consumer
   
202,562
     
229,120
     
265,796
     
296,117
     
336,026
 
Total loans
 
$
8,358,124
   
$
8,264,578
   
$
8,150,147
   
$
7,904,784
   
$
7,777,681
 
 
                                       
PPP income recognized
 
$
5
   
$
9
   
$
71
   
$
320
   
$
1,301
 
PPP unamortized fees
 
$
35
   
$
38
   
$
45
   
$
108
   
$
414
 


9
NBT Bancorp Inc. and Subsidiaries
           
Consolidated Balance Sheets
           
(unaudited, dollars in thousands)
           
             
   
June 30,
   
December 31,
 
Assets
  2023     2022  
Cash and due from banks
 
$
170,010
   
$
166,488
 
Short-term interest-bearing accounts
   
31,878
     
30,862
 
Equity securities, at fair value
   
33,893
     
30,784
 
Securities available for sale, at fair value
   
1,453,926
     
1,527,225
 
Securities held to maturity (fair value $808,641 and $812,647, respectively)
   
912,876
     
919,517
 
Federal Reserve and Federal Home Loan Bank stock
   
53,076
     
44,713
 
Loans held for sale
   
1,866
     
562
 
Loans
   
8,358,124
     
8,150,147
 
Less allowance for loan losses
   
100,400
     
100,800
 
Net loans
 
$
8,257,724
   
$
8,049,347
 
Premises and equipment, net
   
66,799
     
69,047
 
Goodwill
   
281,204
     
281,204
 
Intangible assets, net
   
6,497
     
7,341
 
Bank owned life insurance
   
233,400
     
232,409
 
Other assets
   
387,348
     
379,797
 
Total assets
 
$
11,890,497
   
$
11,739,296
 
                 
Liabilities and stockholders’ equity
               
Demand (noninterest bearing)
 
$
3,326,685
   
$
3,617,324
 
Savings, NOW and money market
   
5,224,560
     
5,444,837
 
Time
   
978,674
     
433,772
 
Total deposits
 
$
9,529,919
   
$
9,495,933
 
Short-term borrowings
   
652,413
     
585,012
 
Long-term debt
   
29,764
     
4,815
 
Subordinated debt, net
   
97,145
     
96,927
 
Junior subordinated debt
   
101,196
     
101,196
 
Other liabilities
   
269,567
     
281,859
 
Total liabilities
 
$
10,680,004
   
$
10,565,742
 
                 
Total stockholders’ equity
 
$
1,210,493
   
$
1,173,554
 
                 
Total liabilities and stockholders’ equity
 
$
11,890,497
   
$
11,739,296
 


10
NBT Bancorp Inc. and Subsidiaries
                       
Consolidated Statements of Income
                       
(unaudited, dollars in thousands except per share data)
                       
                         
   
Three Months Ended
   
Six Months Ended
 
    June 30,     June 30,  
   
2023
   
2022
   
2023
   
2022
 
Interest, fee and dividend income
                       
Interest and fees on loans
 
$
106,935
   
$
78,539
   
$
207,834
   
$
151,882
 
Securities available for sale
   
7,493
     
7,317
     
15,109
     
14,157
 
Securities held to maturity
   
4,991
     
4,185
     
10,026
     
7,678
 
Other
   
1,170
     
1,442
     
1,812
     
1,967
 
Total interest, fee and dividend income
 
$
120,589
   
$
91,483
   
$
234,781
   
$
175,684
 
Interest expense
                               
Deposits
 
$
19,986
   
$
1,756
   
$
31,130
   
$
3,598
 
Short-term borrowings
   
8,126
     
13
     
13,045
     
29
 
Long-term debt
   
290
     
33
     
337
     
120
 
Subordinated debt
   
1,335
     
1,359
     
2,669
     
2,718
 
Junior subordinated debt
   
1,767
     
737
     
3,449
     
1,286
 
Total interest expense
 
$
31,504
   
$
3,898
   
$
50,630
   
$
7,751
 
Net interest income
 
$
89,085
   
$
87,585
   
$
184,151
   
$
167,933
 
Provision for loan losses
   
3,606
     
4,390
     
7,515
     
4,986
 
Net interest income after provision for loan losses
 
$
85,479
   
$
83,195
   
$
176,636
   
$
162,947
 
Noninterest income
                               
Service charges on deposit accounts
 
$
3,733
   
$
3,763
   
$
7,281
   
$
7,451
 
Card services income
   
5,121
     
9,751
     
9,966
     
18,446
 
Retirement plan administration fees
   
11,735
     
12,676
     
23,197
     
25,955
 
Wealth management
   
8,227
     
8,252
     
16,314
     
16,892
 
Insurance services
   
3,716
     
3,578
     
7,647
     
7,366
 
Bank owned life insurance income
   
1,528
     
1,411
     
3,406
     
3,065
 
Net securities (losses)
   
(4,641
)
   
(587
)
   
(9,639
)
   
(766
)
Other
   
2,626
     
2,812
     
5,282
     
5,906
 
Total noninterest income
 
$
32,045
   
$
41,656
   
$
63,454
   
$
84,315
 
Noninterest expense
                               
Salaries and employee benefits
 
$
46,834
   
$
46,716
   
$
94,989
   
$
92,224
 
Technology and data services
   
9,305
     
8,945
     
18,312
     
17,492
 
Occupancy
   
6,923
     
6,487
     
14,143
     
13,280
 
Professional fees and outside services
   
4,159
     
3,906
     
8,337
     
8,182
 
Office supplies and postage
   
1,676
     
1,548
     
3,304
     
2,972
 
FDIC assessment
   
1,344
     
810
     
2,740
     
1,612
 
Advertising
   
525
     
730
     
1,174
     
1,384
 
Amortization of intangible assets
   
458
     
545
     
994
     
1,181
 
Loan collection and other real estate owned, net
   
691
     
757
     
1,546
     
1,141
 
Acquisition expenses
   
1,189
     
-
     
1,807
     
-
 
Other
   
5,690
     
5,675
     
10,770
     
8,794
 
Total noninterest expense
 
$
78,794
   
$
76,119
   
$
158,116
   
$
148,262
 
Income before income tax expense
 
$
38,730
   
$
48,732
   
$
81,974
   
$
99,000
 
Income tax expense
   
8,658
     
10,957
     
18,244
     
22,099
 
Net income
 
$
30,072
   
$
37,775
   
$
63,730
   
$
76,901
 
Earnings Per Share
                               
Basic
 
$
0.70
   
$
0.88
   
$
1.49
   
$
1.79
 
Diluted
 
$
0.70
   
$
0.88
   
$
1.48
   
$
1.78
 


11
NBT Bancorp Inc. and Subsidiaries
                             
Quarterly Consolidated Statements of Income
                             
(unaudited, dollars in thousands except per share data)
                             
                               
   
2023
   
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Interest, fee and dividend income
                             
Interest and fees on loans
 
$
106,935
   
$
100,899
   
$
95,620
   
$
85,266
   
$
78,539
 
Securities available for sale
   
7,493
     
7,616
     
7,831
     
7,665
     
7,317
 
Securities held to maturity
   
4,991
     
5,035
     
5,050
     
4,854
     
4,185
 
Other
   
1,170
     
642
     
671
     
1,429
     
1,442
 
Total interest, fee and dividend income
 
$
120,589
   
$
114,192
   
$
109,172
   
$
99,214
   
$
91,483
 
Interest expense
                                       
Deposits
 
$
19,986
   
$
11,144
   
$
4,092
   
$
2,233
   
$
1,756
 
Short-term borrowings
   
8,126
     
4,919
     
2,510
     
84
     
13
 
Long-term debt
   
290
     
47
     
21
     
20
     
33
 
Subordinated debt
   
1,335
     
1,334
     
1,346
     
1,360
     
1,359
 
Junior subordinated debt
   
1,767
     
1,682
     
1,424
     
1,039
     
737
 
Total interest expense
 
$
31,504
   
$
19,126
   
$
9,393
   
$
4,736
   
$
3,898
 
Net interest income
 
$
89,085
   
$
95,066
   
$
99,779
   
$
94,478
   
$
87,585
 
Provision for loan losses
   
3,606
     
3,909
     
7,677
     
4,484
     
4,390
 
Net interest income after provision for loan losses
 
$
85,479
   
$
91,157
   
$
92,102
   
$
89,994
   
$
83,195
 
Noninterest income
                                       
Service charges on deposit accounts
 
$
3,733
   
$
3,548
   
$
3,598
   
$
3,581
   
$
3,763
 
Card services income
   
5,121
     
4,845
     
4,958
     
5,654
     
9,751
 
Retirement plan administration fees
   
11,735
     
11,462
     
10,661
     
11,496
     
12,676
 
Wealth management
   
8,227
     
8,087
     
8,017
     
8,402
     
8,252
 
Insurance services
   
3,716
     
3,931
     
3,438
     
3,892
     
3,578
 
Bank owned life insurance income
   
1,528
     
1,878
     
1,419
     
1,560
     
1,411
 
Net securities (losses)
   
(4,641
)
   
(4,998
)
   
(217
)
   
(148
)
   
(587
 
Other
   
2,626
     
2,656
     
2,217
     
2,735
     
2,812
 
Total noninterest income
 
$
32,045
   
$
31,409
   
$
34,091
   
$
37,172
   
$
41,656
 
Noninterest expense
                                       
Salaries and employee benefits
 
$
46,834
   
$
48,155
   
$
47,235
   
$
48,371
   
$
46,716
 
Technology and data services
   
9,305
     
9,007
     
9,124
     
9,096
     
8,945
 
Occupancy
   
6,923
     
7,220
     
6,521
     
6,481
     
6,487
 
Professional fees and outside services
   
4,159
     
4,178
     
4,811
     
3,817
     
3,906
 
Office supplies and postage
   
1,676
     
1,628
     
1,699
     
1,469
     
1,548
 
FDIC assessment
   
1,344
     
1,396
     
798
     
787
     
810
 
Advertising
   
525
     
649
     
879
     
559
     
730
 
Amortization of intangible assets
   
458
     
536
     
538
     
544
     
545
 
Loan collection and other real estate owned, net
   
691
     
855
     
957
     
549
     
757
 
Acquisition expenses
   
1,189
     
618
     
967
     
-
     
-
 
Other
   
5,690
     
5,080
     
5,980
     
5,021
     
5,675
 
Total noninterest expense
 
$
78,794
   
$
79,322
   
$
79,509
   
$
76,694
   
$
76,119
 
Income before income tax expense
 
$
38,730
   
$
43,244
   
$
46,684
   
$
50,472
   
$
48,732
 
Income tax expense
   
8,658
     
9,586
     
10,563
     
11,499
     
10,957
 
Net income
 
$
30,072
   
$
33,658
   
$
36,121
   
$
38,973
   
$
37,775
 
Earnings Per Share
                                       
Basic
 
$
0.70
   
$
0.78
   
$
0.84
   
$
0.91
   
$
0.88
 
Diluted
 
$
0.70
   
$
0.78
   
$
0.84
   
$
0.90
   
$
0.88
 


12
NBT Bancorp Inc. and Subsidiaries
                               
Average Quarterly Balance Sheets
                               
(unaudited, dollars in thousands)
                               
                                                   
   
Average
Balance
 
Yield /
Rates
   
Average
Balance
 
Yield /
Rates
   
Average
Balance
 
Yield /
Rates
   
Average
Balance
 
Yield /
Rates
   
Average
Balance
 
Yield /
Rates
 
     
Q2 - 2023
     
Q1 - 2023
     
Q4 - 2022
     
Q3 - 2022
     
Q2 - 2022
 
Assets
                                                           
Short-term interest-bearing accounts
 
$
28,473
   
3.62
%
 
$
34,215
   
2.26
%
 
$
39,573
   
3.31
%
 
$
191,463
   
2.51
%
 
$
553,548
   
0.82
%
Securities taxable1
   
2,394,027
   
1.90
%
   
2,442,732
   
1.92
%
   
2,480,959
   
1.88
%
   
2,491,315
   
1.83
%
   
2,439,960
   
1.74
%
Securities tax-exempt 1 5
   
201,499
   
2.83
%
   
202,321
   
2.81
%
   
208,238
   
2.68
%
   
211,306
   
2.47
%
   
256,799
   
1.83
%
FRB and FHLB stock
   
51,454
   
7.12
%
   
41,144
   
4.45
%
   
32,903
   
4.11
%
   
25,182
   
3.47
%
   
24,983
   
5.03
%
Loans1 6
   
8,307,894
   
5.17
%
   
8,189,520
   
5.00
%
   
8,039,442
   
4.72
%
   
7,808,025
   
4.34
%
   
7,707,730
   
4.09
%
Total interest-earning assets
 
$
10,983,347
   
4.42
%
 
$
10,909,932
   
4.26
%
 
$
10,801,115
   
4.02
%
 
$
10,727,291
   
3.68
%
 
$
10,983,020
   
3.35
%
Other assets
   
835,424
           
836,879
           
855,410
           
887,378
           
883,498
       
Total assets
 
$
11,818,771
         
$
11,746,811
         
$
11,656,525
         
$
11,614,669
         
$
11,866,518
       
Liabilities and stockholders’ equity
                                                                     
Money market deposit accounts
 
$
2,113,965
   
2.30
%
 
$
2,081,210
   
1.22
%
 
$
2,169,192
   
0.39
%
 
$
2,332,341
   
0.15
%
 
$
2,577,367
   
0.14
%
NOW deposit accounts
   
1,463,953
   
0.38
%
   
1,598,834
   
0.36
%
   
1,604,096
   
0.33
%
   
1,548,115
   
0.21
%
   
1,580,132
   
0.07
%
Savings deposits
   
1,708,874
   
0.03
%
   
1,781,465
   
0.03
%
   
1,823,056
   
0.03
%
   
1,854,122
   
0.03
%
   
1,845,128
   
0.03
%
Time deposits
   
856,305
   
2.97
%
   
639,645
   
2.10
%
   
432,110
   
0.41
%
   
455,168
   
0.35
%
   
478,531
   
0.37
%
Total interest-bearing deposits
 
$
6,143,097
   
1.30
%
 
$
6,101,154
   
0.74
%
 
$
6,028,454
   
0.27
%
 
$
6,189,746
   
0.14
%
 
$
6,481,158
   
0.11
%
Federal funds purchased
   
48,407
   
5.35
%
   
44,334
   
4.92
%
   
56,576
   
4.03
%
   
1,522
   
3.39
%
   
-
   
-
 
Repurchase agreements
   
55,627
   
1.08
%
   
71,340
   
0.08
%
   
76,334
   
0.11
%
   
69,048
   
0.10
%
   
60,061
   
0.09
%
Short-term borrowings
   
557,818
   
5.27
%
   
357,200
   
4.96
%
   
177,533
   
4.28
%
   
6,440
   
3.33
%
   
-
   
-
 
Long-term debt
   
29,773
   
3.91
%
   
7,299
   
2.61
%
   
3,817
   
2.18
%
   
3,331
   
2.38
%
   
5,336
   
2.48
%
Subordinated debt, net
   
97,081
   
5.52
%
   
96,966
   
5.58
%
   
97,839
   
5.46
%
   
98,748
   
5.46
%
   
98,642
   
5.53
%
Junior subordinated debt
   
101,196
   
7.00
%
   
101,196
   
6.74
%
   
101,196
   
5.58
%
   
101,196
   
4.07
%
   
101,196
   
2.92
%
Total interest-bearing liabilities
 
$
7,032,999
   
1.80
%
 
$
6,779,489
   
1.14
%
 
$
6,541,749
   
0.57
%
 
$
6,470,031
   
0.29
%
 
$
6,746,393
   
0.23
%
Demand deposits
   
3,316,955
           
3,502,489
           
3,658,965
           
3,708,131
           
3,711,049
       
Other liabilities
   
251,511
           
274,517
           
290,895
           
234,851
           
218,491
       
Stockholders’ equity
   
1,217,306
           
1,190,316
           
1,164,916
           
1,201,656
           
1,190,585
       
Total liabilities and stockholders’ equity
 
$
11,818,771
         
$
11,746,811
         
$
11,656,525
         
$
11,614,669
         
$
11,866,518
       
Interest rate spread
         
2.62
%
         
3.12
%
         
3.45
%
         
3.39
%
         
3.12
%
Net interest margin (FTE)1
         
3.27
%
         
3.55
%
         
3.68
%
         
3.51
%
         
3.21
%


13
NBT Bancorp Inc. and Subsidiaries
                         
Average Year-to-Date Balance Sheets
                         
(unaudited, dollars in thousands)
                         
                                     
   
Average
         
Yield/
   
Average
         
Yield/
 
   
Balance
   
Interest
   
Rates
   
Balance
   
Interest
   
Rates
 
Six Months Ended June 30,
 
2023
   
2022
 
Assets
                                   
Short-term interest-bearing accounts
 
$
31,328
   
$
447
     
2.88
%
 
$
770,727
   
$
1,533
     
0.40
%
Securities taxable1
   
2,418,245
     
22,902
     
1.91
%
   
2,362,699
     
19,981
     
1.71
%
Securities tax-exempt1 5
   
201,908
     
2,826
     
2.82
%
   
257,651
     
2,347
     
1.84
%
FRB and FHLB stock
   
46,327
     
1,365
     
5.94
%
   
25,004
     
434
     
3.50
%
Loans1 6
   
8,249,034
     
208,038
     
5.09
%
   
7,619,691
     
151,964
     
4.02
%
Total interest-earning assets
 
$
10,946,842
   
$
235,578
     
4.34
%
 
$
11,035,772
   
$
176,259
     
3.22
%
Other assets
   
836,148
                     
915,361
                 
Total assets
 
$
11,782,990
                   
$
11,951,133
                 
Liabilities and stockholders’ equity
                                               
Money market deposit accounts
 
$
2,097,678
   
$
18,368
     
1.77
%
 
$
2,648,458
   
$
1,924
     
0.15
%
NOW deposit accounts
   
1,531,021
     
2,824
     
0.37
%
   
1,581,603
     
460
     
0.06
%
Savings deposits
   
1,744,969
     
286
     
0.03
%
   
1,819,978
     
293
     
0.03
%
Time deposits
   
748,573
     
9,652
     
2.60
%
   
486,537
     
921
     
0.38
%
Total interest-bearing deposits
 
$
6,122,241
   
$
31,130
     
1.03
%
 
$
6,536,576
   
$
3,598
     
0.11
%
Federal funds purchased
   
46,381
     
1,184
     
5.15
%
   
-
     
-
     
-
 
Repurchase agreements
   
63,440
     
164
     
0.52
%
   
66,379
     
29
     
0.09
%
Short-term borrowings
   
458,064
     
11,697
     
5.15
%
   
-
     
-
     
-
 
Long-term debt
   
18,598
     
337
     
3.65
%
   
9,634
     
120
     
2.51
%
Subordinated debt, net
   
97,024
     
2,669
     
5.55
%
   
98,587
     
2,718
     
5.56
%
Junior subordinated debt
   
101,196
     
3,449
     
6.87
%
   
101,196
     
1,286
     
2.56
%
Total interest-bearing liabilities
 
$
6,906,944
   
$
50,630
     
1.48
%
 
$
6,812,372
   
$
7,751
     
0.23
%
Demand deposits
   
3,409,209
                     
3,710,589
                 
Other liabilities
   
262,951
                     
212,425
                 
Stockholders’ equity
   
1,203,886
                     
1,215,747
                 
Total liabilities and stockholders’ equity
 
$
11,782,990
                   
$
11,951,133
                 
Net interest income (FTE)1
         
$
184,948
                   
$
168,508
         
Interest rate spread
                   
2.86
%
                   
2.99
%
Net interest margin (FTE)1
                   
3.41
%
                   
3.08
%
Taxable equivalent adjustment
         
$
797
                   
$
575
         
Net interest income
         
$
184,151
                   
$
167,933
         


14
1
The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:

Non-GAAP measures
                             
(unaudited, dollars in thousands)
                             
                               
FTE adjustment
   
2023
   
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Net interest income
 
$
89,085
   
$
95,066
   
$
99,779
   
$
94,478
   
$
87,585
 
Add: FTE adjustment
   
402
     
395
     
392
     
337
     
290
 
Net interest income (FTE)
 
$
89,487
   
$
95,461
   
$
100,171
   
$
94,815
   
$
87,875
 
Average earning assets
 
$
10,983,347
   
$
10,909,932
   
$
10,801,115
   
$
10,727,291
   
$
10,983,020
 
Net interest margin (FTE)3
   
3.27
%
   
3.55
%
   
3.68
%
   
3.51
%
   
3.21
%
                                         
     
6 Months Ended June 30,
                         
     
2023
     
2022
                         
Net interest income
 
$
184,151
   
$
167,933
                         
Add: FTE adjustment
   
797
     
575
                         
Net interest income (FTE)
 
$
184,948
   
$
168,508
                         
Average earning assets
 
$
10,946,842
   
$
11,035,772
                         
Net interest margin (FTE)3
   
3.41
%
   
3.08
%
                       
                                         
Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
 
                                         
Tangible equity to tangible assets
   
2023
   
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Total equity
 
$
1,210,493
   
$
1,211,659
   
$
1,173,554
   
$
1,156,546
   
$
1,188,556
 
Intangible assets
   
287,701
     
288,159
     
288,545
     
289,083
     
289,259
 
Total assets
 
$
11,890,497
   
$
11,839,730
   
$
11,739,296
   
$
11,640,742
   
$
11,720,459
 
Tangible equity to tangible assets
   
7.95
%
   
7.99
%
   
7.73
%
   
7.64
%
   
7.87
%
                                         
Return on average tangible common equity
   
2023
   
2022
 
   
2nd Q
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
 
Net income
 
$
30,072
   
$
33,658
   
$
36,121
   
$
38,973
   
$
37,775
 
Amortization of intangible assets (net of tax)
   
344
     
402
     
404
     
408
     
409
 
Net income, excluding intangibles amortization
 
$
30,416
   
$
34,060
   
$
36,525
   
$
39,381
   
$
38,184
 
                                         
Average stockholders’ equity
 
$
1,217,306
   
$
1,190,316
   
$
1,164,916
   
$
1,201,656
   
$
1,190,585
 
Less: average goodwill and other intangibles
   
287,974
     
288,354
     
288,856
     
289,296
     
289,584
 
Average tangible common equity
 
$
929,332
   
$
901,962
   
$
876,060
   
$
912,360
   
$
901,001
 
Return on average tangible common equity3
   
13.13
%
   
15.31
%
   
16.54
%
   
17.12
%
   
17.00
%
                                         
     
 
6 Months Ended June 30,
                         
     
2023
     
2022
                         
Net income
 
$
63,730
   
$
76,901
                         
Amortization of intangible assets (net of tax)
   
746
     
886
                         
Net income, excluding intangibles amortization
 
$
64,476
   
$
77,787
                         
                                         
Average stockholders’ equity
 
$
1,203,886
   
$
1,215,747
                         
Less: average goodwill and other intangibles
   
288,163
     
289,402
                         
Average tangible common equity
 
$
915,723
   
$
926,345
                         
Return on average tangible common equity3
   
14.20
%
   
16.93
%
                       

2
Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.
3
Annualized.
4
Total past due loans, defined as loans 30 days or more past due and in an accrual status.
5
Securities are shown at average amortized cost.
6
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.