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NBT Bancorp Inc. Announces Second Quarter Net Income of $37.8 Million ($0.88 Per Diluted Common Share); Approves a 7.1% Dividend Increase

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NORWICH, N.Y., July 25, 2022 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2022.

Net income for the three months ended June 30, 2022 was $37.8 million, or $0.88 per diluted common share, compared to $40.3 million, or $0.92 per diluted share, in the second quarter of 2021 and $39.1 million, or $0.90 per diluted share in the first quarter of 2022. Net interest income recognized in the second quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $1.3 million ($0.02 per diluted share), compared to $4.7 million ($0.08 per diluted share) in the second quarter of 2021 and $2.0 million ($0.04 per diluted share) in the first quarter of 2022, reflective of higher levels of loan forgiveness in the prior year and prior quarter. Excluding the impact of PPP loan income recognition, net interest income in the second quarter of 2022 improved in comparison to the second quarter of 2021 and the linked first quarter of 2022 due to loan growth, incremental deployment of excess liquidity into investment securities and increases in the Federal Reserve’s targeted Federal Funds rate. The Company recorded a provision for loan losses of $4.4 million ($0.08 per diluted share) in the second quarter of 2022, compared to a net benefit of $5.2 million ($0.09 per diluted share) in the second quarter of 2021 and a provision of $0.6 million ($0.01 per diluted share) in the first quarter of 2022.

CEO Comments

“We are very pleased with our operating results for the second quarter and first half of 2022, which reflect continued organic loan growth and solid performance by our fee-based businesses. With the increases in the targeted Fed Funds rate in the quarter, we experienced the benefits of an asset-sensitive balance sheet,” said NBT President and CEO John H. Watt, Jr. “Our asset quality continues to be excellent, with historically low levels of net charge-offs and nonperforming assets. Given our strong loan growth and increased uncertainty surrounding the domestic macro-economic outlook, we did add to our loan loss reserves at quarter-end.”

“We are also pleased to have approved a $0.02, or 7.1% increase, to our quarterly dividend to stockholders,” added Watt. “The payment of a meaningful and growing dividend is an important component of our commitment to provide consistent and favorable long-term returns to our stockholders. The increase reflects the continued strength of both our current operating performance and capital position.”

Second Quarter Financial Highlights

Net Income

  • Net income of $37.8 million

  • Diluted earnings per share of $0.88

Net Interest Income / NIM

  • Net interest income on a fully taxable equivalent (“FTE”) basis was $87.9 million1

  • Net interest margin (“NIM”) on a FTE basis was 3.21%1, up 26 basis points (“bps”) from the prior quarter, due primarily to higher yields on earning assets

  • Total cost of deposits of 0.07%

Noninterest Income

  • Noninterest income was $42.2 million, excluding securities gains (losses) and was 32.5% of total revenue

Pre-Provision Net Revenue (“PPNR”)

  • PPNR1 was $54.2 million compared to $50.9 million in the first quarter of 2022 and $49.0 million in the second quarter of 2021

Loans and Credit Quality

  • Period end total loans were $7.78 billion at June 30, 2022, up 9.9%, annualized, excluding impact of PPP loans

  • Period end loans increased $363.2 million from December 31, 2021, excluding $17.3 million and $101.2 million of PPP loans at June 30, 2022 and December 31, 2021, respectively

  • Net charge-offs to average loans was 0.04%, annualized

  • Nonperforming loans to total loans was 0.33%, down from 0.36% in the prior quarter

  • Allowance for loan losses to total loans of 1.20%, was up 2 bps from the first quarter 2022

Capital

  • Announced a $0.30 per share dividend for the third quarter, which was a $0.02 per share or 7.1% increase from the prior quarter

  • Tangible book value per share2 was $20.99 at June 30, 2022, lower than the second quarter of 2021 and the first quarter of 2022 due primarily to the impact of higher interest rates on available for sale investment securities and the related impact to accumulated other comprehensive income

  • Tangible equity to assets of 7.87%1

  • CET1 ratio of 12.14%; Leverage ratio of 9.77%

Loans

  • Period end total loans were $7.78 billion at June 30, 2022 and $7.50 billion at December 31, 2021.

  • Excluding PPP loans, period end loans increased $363.2 million from December 31, 2021. Commercial and industrial loans increased $142.8 million to $1.30 billion; commercial real estate loans increased $15.3 million to $2.67 billion; and total consumer loans increased $205.1 million to $3.79 billion.

  • Total PPP loans as of June 30, 2022 were $17.3 million (net of unamortized fees) with 95% of the original $836 million forgiven through the second quarter of 2022. The following PPP loan activity occurred during the second quarter of 2022:

    • $36.7 million of loans forgiven.

    • $1.3 million of interest and fees recognized into interest income, compared to $2.0 million for the first quarter of 2022 and $4.7 million for the second quarter of 2021.

  • Commercial line of credit utilization rate was 23% at June 30, 2022 and March 31, 2022 and compared to 22% at June 30, 2021.

Deposits

  • Total deposits at June 30, 2022 were $10.03 billion, compared to $10.23 billion at December 31, 2021, a 2% decline, which included a $100.0 million brokered deposit that matured in the quarter and seasonal declines in municipal deposits.

  • Loan to deposit ratio was 77.6% at June 30, 2022, compared to 73.3% at December 31, 2021.

Net Interest Income and Net Interest Margin

  • Net interest income for the second quarter of 2022 was $87.6 million, which was up $7.2 million, or 9.0%, from the first quarter of 2022 and up $8.4 million, or 10.6%, from the second quarter of 2021 primarily due to higher yields on earning assets. PPP income for the second quarter of 2022 was $1.3 million, which was $0.7 million lower compared to the prior quarter and down $3.4 million compared to the second quarter of 2021.

  • The NIM on a FTE basis for the second quarter of 2022 was 3.21%, up 26 bps from the first quarter of 2022 and up 21 bps from the second quarter of 2021. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM increased 13 bps from the prior quarter primarily due to higher earning asset yields as the cost of interest-bearing liabilities remained flat. The net impact of PPP loans and excess liquidity negatively impacted the NIM by 9 bps in the second quarter of 2022 compared to a negative 22 bps impact in the first quarter of 2022, reflective of a lower level of excess liquidity.

  • Earning asset yields for the three months ended June 30, 2022 were up 26 bps from the prior quarter and up 17 bps from the same quarter in the prior year. Earning assets declined $106.1 million, or 1.0%, from the prior quarter and grew $351.9 million, or 3.3%, from the same quarter in the prior year. The following are highlights comparing the second quarter of 2022 to the prior quarter:

    • The average balances of investment securities increased $153.7 million and yields increased 6 bps.

    • The average balances of short-term interest-bearing accounts with a yield of 0.82% decreased $436.8 million resulting from the incremental deployment of excess liquidity into loans and investment securities and modestly lower deposit balances due primarily to seasonal municipal outflows and the maturity of $100 million in brokered deposits.

    • Loan yields increased 14 bps to 4.09% for the quarter. Excluding PPP loans, loan yields increased 16 bps from the prior quarter.

  • Total cost of deposits was 0.07% for the second quarter of 2022, consistent with the prior quarter and down 5 bps from the same period in the prior year.

  • The cost of interest-bearing liabilities for the three months ended June 30, 2022 was 0.23%, consistent with the prior quarter and down 6 bps from the second quarter of 2021 of 0.29%.

Credit Quality and Allowance for Credit Losses

  • Net charge-offs to total average loans of 4 bps compared to 14 bps in the prior quarter and 7 bps in the second quarter of 2021. Recoveries in the second quarter of 2022 were $3.3 million compared to $1.9 million in the prior quarter and $2.7 million in the second quarter of 2021.

  • Nonperforming assets to total assets was 0.22% compared to 0.23% at March 31, 2022 and 0.38% (0.39% excluding PPP loans) at June 30, 2021. Past due loans to total loans increased to 0.40% as of June 30, 2022 from 0.24% (0.25% excluding PPP loans) in the prior quarter almost entirely due to one commercial credit which returned to current status in early July.

  • Provision expense for the three months ended June 30, 2022 was $4.4 million with net charge-offs of $0.8 million. Provision expense was $3.8 million higher than the first quarter of 2022 and $9.6 million higher than the second quarter of 2021. The increase in provision expense from the prior quarter was driven by modest deterioration of the macro-economic forecasts and providing for loan growth, partly offset by a lower level of net charge-offs. The increase in provision expense from the second quarter of 2021 was driven both by loan growth and an increase in the level of allowance for loan losses resulting from less favorable economic forecasts in the current year relative to improved economic forecasts in the prior year.

  • The allowance for loan losses was $93.6 million, or 1.20% (1.21% excluding PPP loans and related allowance) of total loans at June 30, 2022, compared to 1.18% (1.18% excluding PPP loans and related allowance) of total loans at March 31, 2022 and 1.31% (1.38% excluding PPP loans and related allowance) of total loans at June 30, 2021. The increase in the level of allowance for loan losses from the prior quarter was primarily due to the deterioration in the forecast of economic conditions, which had an impact on the level of expected credit losses and the increase in loan balances.

  • The reserve for unfunded loan commitments increased to $5.1 million at June 30, 2022 compared to the prior quarter at $4.8 million.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $42.2 million for the three months ended June 30, 2022, down $0.6 million from the seasonally stronger first quarter and up $3.1 million from the prior year’s second quarter.

  • Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2021. Early in June 2022, the Company made adjustments to customer non-sufficient funds processing practices and expects these adjustments to reduce future service charge fee income by approximately $0.5 million per quarter.

  • Card services income was higher than the prior quarter and the second quarter of 2021 due to increased volume. As discussed in previous quarters, the Company will be subject to the provisions of the Durbin Amendment to the Dodd-Frank Act beginning in the third quarter of 2022, which it estimates will reduce quarterly debit card interchange income by approximately $3.7 million.

  • Retirement plan administration fees were lower than the prior quarter driven by seasonal revenue fluctuations related to activity-based fees and higher than the second quarter of 2021 driven by higher activity-based fees and continued organic growth.

  • Wealth management fees were lower than the prior quarter and lower than the second quarter of 2021 driven primarily by market performance.

  • Other income decreased from the prior quarter and the second quarter of the prior year driven by lower commercial loan swap fees.

Noninterest Expense

  • Total noninterest expense for the second quarter of 2022 was up 5.5% from the previous quarter and up 6.6% from the second quarter of 2021.

  • Salaries and benefits increased from the prior quarter due to one additional day of payroll in the second quarter, annual merit pay increases and increased medical expenses. The increase from the second quarter of 2021 was driven by increased salaries and wages including merit pay increases, higher levels of incentive compensation and increased medical expenses.

  • Technology and data services increased from the prior quarter due to continued investment in digital platform solutions including the completion of the Company’s human resources information system conversion.

  • Loan collection and other real estate owned were higher than the prior quarter due to higher collection expenses and a gain on the sale of a property in the first quarter of 2022.

  • Other expenses increased from the linked first quarter of 2022 due to a $0.5 million increase in the provision for the reserve for unfunded commitments, higher travel and training expenses and seasonal timing of certain expenditures.

Income Taxes

  • The effective tax rate was 22.5% for the second quarter of 2022 compared to 22.2% for the first quarter of 2022 and 22.9% for the second quarter of 2021.

Capital

  • Capital ratios remain strong with tangible common equity to tangible assets1 at 7.87%. Tangible book value per share2 was $20.99 at June 30, 2022, $21.25 at March 31, 2022 and $21.50 at June 30, 2021.

  • Stockholders’ equity decreased $61.9 million from December 31, 2021 driven by the $101.4 million decrease in accumulated other comprehensive income due to the change in the market value of securities available for sale, dividends declared of $24.1 million and the repurchase of common stock of $14.7 million, partly offset by net income of $76.9 million.

  • June 30, 2022, CET1 capital ratio of 12.14%, leverage ratio of 9.77% and total risk-based capital ratio of 15.50%.

Dividend and Stock Repurchase

  • The Board of Directors approved a third-quarter cash dividend of $0.30 per share at a meeting held today. The dividend, which represents a $0.02, or 7.1% increase, will be paid on September 15, 2022 to stockholders of record as of September 1, 2022. The increased dividend represents a yield of 3.0% based upon the closing price of the Company’s stock on July 22, 2022. This is the Company’s tenth consecutive year of annual dividend increases.

  • The Company purchased 182,900 shares of common stock early in the second quarter of 2022 at a weighted average price of $35.88 including commissions. The repurchase program under which these shares were purchased expires on December 31, 2023.

Other Events

  • On June 30, 2022, NBT Insurance Agency, LLC, a full-service insurance agency, entered into an asset purchase agreement with Harrison A. Rogers Agency, Inc. (“H.A. Rogers”), a New York corporation, pursuant to which NBT Insurance will acquire substantially all of the assets of H.A. Rogers. H.A. Rogers is a small personal and commercial lines property and casualty insurance agency. This is a strategic regional insurance expansion into the northern New York market where NBT Bank has a long established presence. The acquisition is expected to close in the third quarter.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, July 26, 2022, to review second quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.72 billion at June 30, 2022. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; (17) changes in the Company’s organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, the impact of the COVID-19 pandemic on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2021 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.

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

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

Non-GAAP Measures

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

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. and Subsidiaries

Selected Financial Data

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Profitability:

 

 

 

 

 

Diluted earnings per share

$

0.88

 

$

0.90

 

$

0.86

 

$

0.86

 

$

0.92

 

Weighted average diluted common shares outstanding

 

43,092,851

 

 

43,385,451

 

 

43,574,539

 

 

43,631,497

 

 

43,792,940

 

Return on average assets3

 

1.28%

 

 

1.32%

 

 

1.23%

 

 

1.26%

 

 

1.39%

 

Return on average equity3

 

12.73%

 

 

12.78%

 

 

11.89%

 

 

12.04%

 

 

13.42%

 

Return on average tangible common equity1 3

 

17.00%

 

 

16.87%

 

 

15.70%

 

 

15.97%

 

 

17.93%

 

Net interest margin1 3

 

3.21%

 

 

2.95%

 

 

3.08%

 

 

2.88%

 

 

3.00%

 

 

 

 

 

 

 

 

6 Months Ended June 30,

 

 

 

 

2022

2021

 

 

 

Profitability:

 

 

 

 

 

Diluted earnings per share

$

1.78

 

$

1.83

 

 

 

 

Weighted average diluted common shares outstanding

 

43,238,248

 

 

43,839,060

 

 

 

 

Return on average assets3

 

1.30%

 

 

1.42%

 

 

 

 

Return on average equity3

 

12.76%

 

 

13.49%

 

 

 

 

Return on average tangible common equity1 3

 

16.93%

 

 

18.08%

 

 

 

 

Net interest margin1 3

 

3.08%

 

 

3.08%

 

 

 

 

 

 

 

 

 

 

 

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Balance sheet data:

 

 

 

 

 

Short-term interest-bearing accounts

$

328,593

 

$

913,315

 

$

1,111,296

 

$

1,131,074

 

$

883,758

 

Securities available for sale

 

1,619,356

 

 

1,662,697

 

 

1,687,361

 

 

1,576,030

 

 

1,534,733

 

Securities held to maturity

 

936,512

 

 

895,005

 

 

733,210

 

 

683,103

 

 

622,351

 

Net loans

 

7,684,081

 

 

7,559,826

 

 

7,406,459

 

 

7,473,442

 

 

7,419,127

 

Total assets

 

11,720,459

 

 

12,147,833

 

 

12,012,111

 

 

11,994,411

 

 

11,574,947

 

Total deposits

 

10,028,708

 

 

10,461,623

 

 

10,234,469

 

 

10,195,178

 

 

9,785,257

 

Total borrowings

 

265,796

 

 

278,788

 

 

311,476

 

 

313,311

 

 

304,110

 

Total liabilities

 

10,531,903

 

 

10,945,583

 

 

10,761,658

 

 

10,752,954

 

 

10,349,891

 

Stockholders' equity

 

1,188,556

 

 

1,202,250

 

 

1,250,453

 

 

1,241,457

 

 

1,225,056

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

Equity to assets

 

10.14%

 

 

9.90%

 

 

10.41%

 

 

10.35%

 

 

10.58%

 

Tangible equity ratio1

 

7.87%

 

 

7.70%

 

 

8.20%

 

 

8.13%

 

 

8.28%

 

Book value per share

$

27.75

 

$

27.96

 

$

28.97

 

$

28.65

 

$

28.19

 

Tangible book value per share2

$

20.99

 

$

21.25

 

$

22.26

 

$

21.95

 

$

21.50

 

Leverage ratio

 

9.77%

 

 

9.52%

 

 

9.41%

 

 

9.47%

 

 

9.40%

 

Common equity tier 1 capital ratio

 

12.14%

 

 

12.23%

 

 

12.25%

 

 

12.20%

 

 

12.12%

 

Tier 1 capital ratio

 

13.27%

 

 

13.39%

 

 

13.43%

 

 

13.39%

 

 

13.34%

 

Total risk-based capital ratio

 

15.50%

 

 

15.64%

 

 

15.73%

 

 

15.74%

 

 

15.78%

 

Common stock price (end of period)

$

37.59

 

$

36.13

 

$

38.52

 

$

36.12

 

$

35.97

 

 


NBT Bancorp Inc. and Subsidiaries

Asset Quality and Consolidated Loan Balances

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Asset quality:

 

 

 

 

 

Nonaccrual loans

$

23,673

 

$

25,812

 

$

30,285

 

$

35,737

 

$

40,550

 

90 days past due and still accruing

 

2,096

 

 

1,944

 

 

2,458

 

 

2,940

 

 

2,575

 

Total nonperforming loans

 

25,769

 

 

27,756

 

 

32,743

 

 

38,677

 

 

43,125

 

Other real estate owned

 

-

 

 

-

 

 

167

 

 

859

 

 

798

 

Total nonperforming assets

 

25,769

 

 

27,756

 

 

32,910

 

 

39,536

 

 

43,923

 

Allowance for loan losses

 

93,600

 

 

90,000

 

 

92,000

 

 

93,000

 

 

98,500

 

 

 

 

 

 

 

Asset quality ratios (total):

 

 

 

 

 

Allowance for loan losses to total loans

 

1.20%

 

 

1.18%

 

 

1.23%

 

 

1.23%

 

 

1.31%

 

Total nonperforming loans to total loans

 

0.33%

 

 

0.36%

 

 

0.44%

 

 

0.51%

 

 

0.57%

 

Total nonperforming assets to total assets

 

0.22%

 

 

0.23%

 

 

0.27%

 

 

0.33%

 

 

0.38%

 

Allowance for loan losses to total nonperforming loans

 

363.23%

 

 

324.25%

 

 

280.98%

 

 

240.45%

 

 

228.41%

 

Past due loans to total loans4

 

0.40%

 

 

0.24%

 

 

0.29%

 

 

0.46%

 

 

0.26%

 

Net charge-offs to average loans3

 

0.04%

 

 

0.14%

 

 

0.22%

 

 

0.11%

 

 

0.07%

 

 

 

 

 

 

 

Asset quality ratios (excluding paycheck protection program):

 

 

 

 

Allowance for loan losses to total loans

 

1.21%

 

 

1.18%

 

 

1.24%

 

 

1.28%

 

 

1.38%

 

Total nonperforming loans to total loans

 

0.33%

 

 

0.37%

 

 

0.44%

 

 

0.53%

 

 

0.60%

 

Total nonperforming assets to total assets

 

0.22%

 

 

0.23%

 

 

0.28%

 

 

0.34%

 

 

0.39%

 

Allowance for loan losses to total nonperforming loans

 

363.27%

 

 

324.24%

 

 

280.96%

 

 

240.42%

 

 

228.36%

 

Past due loans to total loans4

 

0.40%

 

 

0.25%

 

 

0.29%

 

 

0.48%

 

 

0.27%

 

Net charge-offs to average loans3

 

0.04%

 

 

0.14%

 

 

0.22%

 

 

0.12%

 

 

0.07%

 

 

 

 

 

 

 

 

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Allowance for loan losses as a percentage of loans by segment:

 

 

 

 

Commercial & industrial

 

0.75%

 

 

0.66%

 

 

0.78%

 

 

0.83%

 

 

1.11%

 

Commercial real estate

 

0.89%

 

 

0.79%

 

 

0.78%

 

 

0.93%

 

 

1.26%

 

Paycheck protection program

 

0.01%

 

 

0.01%

 

 

0.01%

 

 

0.01%

 

 

0.01%

 

Residential real estate

 

0.79%

 

 

0.88%

 

 

0.92%

 

 

0.93%

 

 

0.98%

 

Auto

 

0.79%

 

 

0.76%

 

 

0.79%

 

 

0.78%

 

 

0.76%

 

Other consumer

 

3.98%

 

 

4.14%

 

 

4.49%

 

 

4.57%

 

 

4.27%

 

Total

 

1.20%

 

 

1.18%

 

 

1.23%

 

 

1.23%

 

 

1.31%

 

Total excluding PPP loans

 

1.21%

 

 

1.18%

 

 

1.24%

 

 

1.28%

 

 

1.38%

 

 

 

 

 

 

 

 

2022

2021

Loans by line of business:

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Commercial

$

1,298,072

 

$

1,214,834

 

$

1,155,240

 

$

1,148,176

 

$

1,159,591

Commercial real estate

 

2,670,633

 

 

2,709,611

 

 

2,655,367

 

 

2,638,762

 

 

2,585,421

 

Paycheck protection program

 

17,286

 

 

50,977

 

 

101,222

 

 

276,195

 

 

359,738

 

Residential real estate mortgages

 

1,606,188

 

 

1,584,551

 

 

1,571,232

 

 

1,549,684

 

 

1,512,354

 

Indirect auto

 

936,516

 

 

890,643

 

 

859,454

 

 

873,860

 

 

899,324

 

Residential solar

 

599,565

 

 

514,526

 

 

440,016

 

 

365,299

 

 

325,717

 

Home equity

 

313,395

 

 

319,180

 

 

330,357

 

 

339,316

 

 

351,469

 

Other consumer

 

336,026

 

 

365,504

 

 

385,571

 

 

375,150

 

 

324,013

 

Total loans

$

7,777,681

 

$

7,649,826

 

$

7,498,459

 

$

7,566,442

 

$

7,517,627

 

 

 

 

 

 

 

PPP income recognized

$

1,301

 

$

1,976

 

$

7,545

 

$

2,861

 

$

4,732

 

PPP unamortized fees

$

414

 

$

1,629

 

$

3,420

 

$

10,536

 

$

12,576

 

 

 

 

 

 

 


NBT Bancorp Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited, dollars in thousands)

 

 

 

 

June 30,

December 31,

Assets

2022

2021

Cash and due from banks

$

195,023

$

157,775

Short-term interest-bearing accounts

 

328,593

 

1,111,296

Equity securities, at fair value

 

29,974

 

33,550

Securities available for sale, at fair value

 

1,619,356

 

1,687,361

Securities held to maturity (fair value $864,234 and $735,260, respectively)

 

936,512

 

733,210

Federal Reserve and Federal Home Loan Bank stock

 

24,893

 

25,098

Loans held for sale

 

128

 

830

Loans

 

7,777,681

 

7,498,459

Less allowance for loan losses

 

93,600

 

92,000

Net loans

$

7,684,081

$

7,406,459

Premises and equipment, net

 

69,426

 

72,093

Goodwill

 

281,112

 

280,541

Intangible assets, net

 

8,147

 

8,927

Bank owned life insurance

 

230,390

 

228,238

Other assets

 

312,824

 

266,733

Total assets

$

11,720,459

$

12,012,111

 

 

 

Liabilities and stockholders' equity

 

 

Demand (noninterest bearing)

$

3,717,899

$

3,689,556

Savings, NOW and money market

 

5,845,045

 

6,043,441

Time

 

465,764

 

501,472

Total deposits

$

10,028,708

$

10,234,469

Short-term borrowings

 

62,545

 

97,795

Long-term debt

 

3,347

 

13,995

Subordinated debt, net

 

98,708

 

98,490

Junior subordinated debt

 

101,196

 

101,196

Other liabilities

 

237,399

 

215,713

Total liabilities

$

10,531,903

$

10,761,658

 

 

 

Total stockholders' equity

$

1,188,556

$

1,250,453

 

 

 

Total liabilities and stockholders' equity

$

11,720,459

$

12,012,111

 

 

 


NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2022

2021

2022

2021

Interest, fee and dividend income

 

 

 

 

Interest and fees on loans

$

78,539

 

$

74,795

 

$

151,882

 

$

149,888

 

Securities available for sale

 

7,317

 

 

5,762

 

 

14,157

 

 

11,306

 

Securities held to maturity

 

4,185

 

 

3,096

 

 

7,678

 

 

6,478

 

Other

 

1,442

 

 

391

 

 

1,967

 

 

682

 

Total interest, fee and dividend income

$

91,483

 

$

84,044

 

$

175,684

 

$

168,354

 

Interest expense

 

 

 

 

Deposits

$

1,756

 

$

2,862

 

$

3,598

 

$

6,034

 

Short-term borrowings

 

13

 

 

32

 

 

29

 

 

102

 

Long-term debt

 

33

 

 

88

 

 

120

 

 

212

 

Subordinated debt

 

1,359

 

 

1,359

 

 

2,718

 

 

2,718

 

Junior subordinated debt

 

737

 

 

525

 

 

1,286

 

 

1,055

 

Total interest expense

$

3,898

 

$

4,866

 

$

7,751

 

$

10,121

 

Net interest income

$

87,585

 

$

79,178

 

$

167,933

 

$

158,233

 

Provision for loan losses

 

4,390

 

 

(5,216

)

 

4,986

 

 

(8,012

)

Net interest income after provision for loan losses

$

83,195

 

$

84,394

 

$

162,947

 

$

166,245

 

Noninterest income

 

 

 

 

Service charges on deposit accounts

$

3,763

 

$

3,028

 

$

7,451

 

$

6,055

 

Card services income

 

9,751

 

 

9,184

 

 

18,446

 

 

16,734

 

Retirement plan administration fees

 

12,676

 

 

9,779

 

 

25,955

 

 

19,877

 

Wealth management

 

8,252

 

 

8,406

 

 

16,892

 

 

16,316

 

Insurance services

 

3,578

 

 

3,508

 

 

7,366

 

 

6,969

 

Bank owned life insurance income

 

1,411

 

 

1,659

 

 

3,065

 

 

3,040

 

Net securities (losses) gains

 

(587

)

 

201

 

 

(766

)

 

668

 

Other

 

2,812

 

 

3,551

 

 

5,906

 

 

6,695

 

Total noninterest income

$

41,656

 

$

39,316

 

$

84,315

 

$

76,354

 

Noninterest expense

 

 

 

 

Salaries and employee benefits

$

46,716

 

$

42,671

 

$

92,224

 

$

84,272

 

Technology and data services

 

8,945

 

 

8,841

 

 

17,492

 

 

17,733

 

Occupancy

 

6,487

 

 

6,370

 

 

13,280

 

 

13,259

 

Professional fees and outside services

 

3,906

 

 

4,030

 

 

8,182

 

 

7,619

 

Office supplies and postage

 

1,548

 

 

1,615

 

 

2,972

 

 

3,114

 

FDIC expense

 

810

 

 

663

 

 

1,612

 

 

1,471

 

Advertising

 

730

 

 

468

 

 

1,384

 

 

919

 

Amortization of intangible assets

 

545

 

 

682

 

 

1,181

 

 

1,494

 

Loan collection and other real estate owned, net

 

757

 

 

663

 

 

1,141

 

 

1,253

 

Other

 

5,675

 

 

5,416

 

 

8,794

 

 

8,173

 

Total noninterest expense

$

76,119

 

$

71,419

 

$

148,262

 

$

139,307

 

Income before income tax expense

$

48,732

 

$

52,291

 

$

99,000

 

$

103,292

 

Income tax expense

 

10,957

 

 

11,995

 

 

22,099

 

 

23,150

 

   Net income

$

37,775

 

$

40,296

 

$

76,901

 

$

80,142

 

Earnings Per Share

 

 

 

 

Basic

$

0.88

 

$

0.93

 

$

1.79

 

$

1.84

 

Diluted

$

0.88

 

$

0.92

 

$

1.78

 

$

1.83

 

 

 

 

 

 


NBT Bancorp Inc. and Subsidiaries

Quarterly Consolidated Statements of Income

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Interest, fee and dividend income

 

 

 

 

 

Interest and fees on loans

$

78,539

 

$

73,343

 

$

79,470

 

$

72,817

 

$

74,795

 

Securities available for sale

 

7,317

 

 

6,840

 

 

6,101

 

 

5,898

 

 

5,762

 

Securities held to maturity

 

4,185

 

 

3,493

 

 

3,097

 

 

2,976

 

 

3,096

 

Other

 

1,442

 

 

525

 

 

639

 

 

524

 

 

391

 

Total interest, fee and dividend income

$

91,483

 

$

84,201

 

$

89,307

 

$

82,215

 

$

84,044

 

Interest expense

 

 

 

 

 

Deposits

$

1,756

 

$

1,842

 

$

2,132

 

$

2,548

 

$

2,862

 

Short-term borrowings

 

13

 

 

16

 

 

28

 

 

28

 

 

32

 

Long-term debt

 

33

 

 

87

 

 

88

 

 

89

 

 

88

 

Subordinated debt

 

1,359

 

 

1,359

 

 

1,360

 

 

1,359

 

 

1,359

 

Junior subordinated debt

 

737

 

 

549

 

 

518

 

 

517

 

 

525

 

Total interest expense

$

3,898

 

$

3,853

 

$

4,126

 

$

4,541

 

$

4,866

 

Net interest income

$

87,585

 

$

80,348

 

$

85,181

 

$

77,674

 

$

79,178

 

Provision for loan losses

 

4,390

 

 

596

 

 

3,097

 

 

(3,342

)

 

(5,216

)

Net interest income after provision for loan losses

$

83,195

 

$

79,752

 

$

82,084

 

$

81,016

 

$

84,394

 

Noninterest income

 

 

 

 

 

Service charges on deposit accounts

$

3,763

 

$

3,688

 

$

3,804

 

$

3,489

 

$

3,028

 

Card services income

 

9,751

 

 

8,695

 

 

8,847

 

 

9,101

 

 

9,184

 

Retirement plan administration fees

 

12,676

 

 

13,279

 

 

11,816

 

 

10,495

 

 

9,779

 

Wealth management

 

8,252

 

 

8,640

 

 

8,619

 

 

8,783

 

 

8,406

 

Insurance services

 

3,578

 

 

3,788

 

 

3,394

 

 

3,720

 

 

3,508

 

Bank owned life insurance income

 

1,411

 

 

1,654

 

 

1,629

 

 

1,548

 

 

1,659

 

Net securities (losses) gains

 

(587

)

 

(179

)

 

(2

)

 

(100

)

 

201

 

Other

 

2,812

 

 

3,094

 

 

3,004

 

 

3,293

 

 

3,551

 

Total noninterest income

$

41,656

 

$

42,659

 

$

41,111

 

$

40,329

 

$

39,316

 

Noninterest expense

 

 

 

 

 

Salaries and employee benefits

$

46,716

 

$

45,508

 

$

44,118

 

$

44,190

 

$

42,671

 

Technology and data services

 

8,945

 

 

8,547

 

 

8,563

 

 

8,421

 

 

8,841

 

Occupancy

 

6,487

 

 

6,793

 

 

6,635

 

 

6,154

 

 

6,370

 

Professional fees and outside services

 

3,906

 

 

4,276

 

 

4,903

 

 

3,784

 

 

4,030

 

Office supplies and postage

 

1,548

 

 

1,424

 

 

1,528

 

 

1,364

 

 

1,615

 

FDIC expense

 

810

 

 

802

 

 

798

 

 

772

 

 

663

 

Advertising

 

730

 

 

654

 

 

1,019

 

 

583

 

 

468

 

Amortization of intangible assets

 

545

 

 

636

 

 

651

 

 

663

 

 

682

 

Loan collection and other real estate owned, net

 

757

 

 

384

 

 

956

 

 

706

 

 

663

 

Other

 

5,675

 

 

3,119

 

 

5,934

 

 

6,232

 

 

5,416

 

Total noninterest expense

$

76,119

 

$

72,143

 

$

75,105

 

$

72,869

 

$

71,419

 

Income before income tax expense

$

48,732

 

$

50,268

 

$

48,090

 

$

48,476

 

$

52,291

 

Income tax expense

 

10,957

 

 

11,142

 

 

10,780

 

 

11,043

 

 

11,995

 

   Net income

$

37,775

 

$

39,126

 

$

37,310

 

$

37,433

 

$

40,296

 

Earnings Per Share

 

 

 

 

 

Basic

$

0.88

 

$

0.91

 

$

0.86

 

$

0.86

 

$

0.93

 

Diluted

$

0.88

 

$

0.90

 

$

0.86

 

$

0.86

 

$

0.92

 

 

 

 

 

 

 


NBT Bancorp Inc. and Subsidiaries

Average Quarterly Balance Sheets

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Average Balance

Yield / Rates

Average Balance

Yield / Rates

Average Balance

Yield / Rates

Average Balance

Yield / Rates

Average Balance

Yield / Rates

 

Q2 - 2022

Q1 - 2022

Q4 - 2021

Q3 - 2021

Q2 - 2021

Assets

 

 

 

 

 

 

 

 

 

 

Short-term interest-bearing accounts

$

553,548

0.82%

$

990,319

0.17%

$

1,145,794

0.16%

$

1,014,120

0.16%

$

974,034

0.09%

Securities taxable1

 

2,439,960

1.74%

 

2,284,578

1.67%

 

2,081,796

1.57%

 

1,923,700

1.63%

 

1,864,542

1.69%

Securities tax-exempt 1 5

 

256,799

1.83%

 

258,513

1.84%

 

257,320

1.85%

 

246,685

1.97%

 

193,108

2.59%

FRB and FHLB stock

 

24,983

5.03%

 

25,026

1.98%

 

25,149

2.74%

 

25,154

1.91%

 

25,115

2.67%

Loans1 6

 

7,707,730

4.09%

 

7,530,674

3.95%

 

7,507,165

4.20%

 

7,517,839

3.84%

 

7,574,272

3.96%

Total interest-earning assets

$

10,983,020

3.35%

$

11,089,110

3.09%

$

11,017,224

3.23%

$

10,727,498

3.05%

$

10,631,071

3.18%

Other assets

 

883,498

 

 

947,578

 

 

982,136

 

 

1,019,797

 

 

971,681

 

Total assets

$

11,866,518

 

$

12,036,688

 

$

11,999,360

 

$

11,747,295

 

$

11,602,752

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

Money market deposit accounts

$

2,577,367

0.14%

$

2,720,338

0.15%

$

2,678,477

0.16%

$

2,580,570

0.19%

$

2,605,767

0.21%

NOW deposit accounts

 

1,580,132

0.07%

 

1,583,091

0.05%

 

1,551,846

0.05%

 

1,442,678

0.05%

 

1,454,751

0.05%

Savings deposits

 

1,845,128

0.03%

 

1,794,549

0.03%

 

1,725,004

0.05%

 

1,691,539

0.05%

 

1,660,722

0.05%

Time deposits

 

478,531

0.37%

 

494,632

0.40%

 

537,875

0.46%

 

565,216

0.62%

 

591,147

0.75%

Total interest-bearing deposits

$

6,481,158

0.11%

$

6,592,610

0.11%

$

6,493,202

0.13%

$

6,280,003

0.16%

$

6,312,387

0.18%

Federal funds purchased

 

-

-

 

-

-

 

65

-

 

-

-

 

-

-

Repurchase agreements

 

60,061

0.09%

 

72,768

0.09%

 

97,389

0.11%

 

99,703

0.11%

 

95,226

0.13%

Short-term borrowings

 

-

-

 

-

-

 

1

-

 

-

-

 

-

-

Long-term debt

 

5,336

2.48%

 

13,979

2.52%

 

14,004

2.49%

 

14,029

2.52%

 

14,053

2.51%

Subordinated debt, net

 

98,642

5.53%

 

98,531

5.59%

 

98,422

5.48%

 

98,311

5.48%

 

98,204

5.55%

Junior subordinated debt

 

101,196

2.92%

 

101,196

2.20%

 

101,196

2.03%

 

101,196

2.03%

 

101,196

2.08%

Total interest-bearing liabilities

$

6,746,393

0.23%

$

6,879,084

0.23%

$

6,804,279

0.24%

$

6,593,242

0.27%

$

6,621,066

0.29%

Demand deposits

 

3,711,049

 

 

3,710,124

 

 

3,719,070

 

 

3,676,883

 

 

3,542,176

 

Other liabilities

 

218,491

 

 

206,292

 

 

231,260

 

 

244,125

 

 

235,536

 

Stockholders' equity

 

1,190,585

 

 

1,241,188

 

 

1,244,751

 

 

1,233,045

 

 

1,203,974

 

Total liabilities and stockholders' equity

$

11,866,518

 

$

12,036,688

 

$

11,999,360

 

$

11,747,295

 

$

11,602,752

 

Interest rate spread

 

3.12%

 

2.86%

 

2.99%

 

2.78%

 

2.89%

Net interest margin (FTE)1

 

3.21%

 

2.95%

 

3.08%

 

2.88%

 

3.00%

 

 

 

 

 

 

 

 

 

 

 


NBT Bancorp Inc. and Subsidiaries

Average Year-to-Date Balance Sheets

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Average

 

Yield/

Average

 

Yield/

 

 

Balance

Interest

Rates

Balance

Interest

Rates

Six Months Ended June 30,

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

Short-term interest-bearing accounts

 

$

770,727

$

1,533

0.40%

 

$

781,764

$

360

0.09%

 

Securities taxable1

 

 

2,362,699

 

19,981

1.71%

 

 

1,817,008

 

15,806

1.75%

 

Securities tax-exempt 1 5

 

 

257,651

 

2,347

1.84%

 

 

188,998

 

2,504

2.67%

 

FRB and FHLB stock

 

 

25,004

 

434

3.50%

 

 

25,359

 

322

2.56%

 

Loans1 6

 

 

7,619,691

 

151,964

4.02%

 

 

7,574,304

 

149,963

3.99%

 

Total interest-earning assets

 

$

11,035,772

$

176,259

3.22%

 

$

10,387,433

$

168,955

3.28%

 

Other assets

 

 

915,361

 

 

 

966,367

 

 

Total assets

 

$

11,951,133

 

 

$

11,353,800

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

Money market deposit accounts

 

$

2,648,458

$

1,924

0.15%

 

$

2,545,280

$

2,755

0.22%

 

NOW deposit accounts

 

 

1,581,603

 

460

0.06%

 

 

1,407,118

 

348

0.05%

 

Savings deposits

 

 

1,819,978

 

293

0.03%

 

 

1,604,664

 

406

0.05%

 

Time deposits

 

 

486,537

 

921

0.38%

 

 

603,178

 

2,525

0.84%

 

Total interest-bearing deposits

 

$

6,536,576

$

3,598

0.11%

 

$

6,160,240

$

6,034

0.20%

 

Federal funds purchased

 

 

-

 

-

-

 

 

-

 

-

-

 

Repurchase agreements

 

 

66,379

 

29

0.09%

 

 

102,525

 

75

0.15%

 

Short-term borrowings

 

 

-

 

-

-

 

 

2,624

 

27

2.07%

 

Long-term debt

 

 

9,634

 

120

2.51%

 

 

16,967

 

212

2.52%

 

Subordinated debt, net

 

 

98,587

 

2,718

5.56%

 

 

98,149

 

2,718

5.58%

 

Junior subordinated debt

 

 

101,196

 

1,286

2.56%

 

 

101,196

 

1,055

2.10%

 

Total interest-bearing liabilities

 

$

6,812,372

$

7,751

0.23%

 

$

6,481,701

$

10,121

0.31%

 

Demand deposits

 

 

3,710,589

 

 

 

3,431,216

 

 

Other liabilities

 

 

212,425

 

 

 

243,221

 

 

Stockholders' equity

 

 

1,215,747

 

 

 

1,197,662

 

 

Total liabilities and stockholders' equity

$

11,951,133

 

 

$

11,353,800

 

 

Net interest income (FTE)1

 

 

$

168,508

 

 

$

158,834

 

Interest rate spread

 

 

 

2.99%

 

 

 

2.97%

 

Net interest margin (FTE)1

 

 

 

3.08%

 

 

 

3.08%

 

Taxable equivalent adjustment

 

 

$

575

 

 

$

601

 

Net interest income

 

 

$

167,933

 

 

$

158,233

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

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

 

 

 

 

 

 

Non-GAAP measures

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue ("PPNR")

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Net income

$

37,775

 

$

39,126

 

$

37,310

 

$

37,433

 

$

40,296

 

Income tax expense

 

10,957

 

 

11,142

 

 

10,780

 

 

11,043

 

 

11,995

 

Provision for loan losses

 

4,390

 

 

596

 

 

3,097

 

 

(3,342

)

 

(5,216

)

FTE adjustment

 

290

 

 

285

 

 

292

 

 

298

 

 

299

 

Net securities losses (gains)

 

587

 

 

179

 

 

2

 

 

100

 

 

(201

)

Provision for unfunded loan commitments reserve

 

240

 

 

(260

)

 

(250

)

 

(470

)

 

(80

)

Nonrecurring expense

 

-

 

 

(172

)

 

250

 

 

2,288

 

 

1,880

 

PPNR

$

54,239

 

$

50,896

 

$

51,481

 

$

47,350

 

$

48,973

 

 

 

 

 

 

 

Average assets

$

11,866,518

 

$

12,036,688

 

$

11,999,360

 

$

11,747,295

 

$

11,602,757

 

 

 

 

 

 

 

Return on average assets3

 

1.28%

 

 

1.32%

 

 

1.23%

 

 

1.26%

 

 

1.39%

 

PPNR return on average assets3

 

1.83%

 

 

1.71%

 

 

1.70%

 

 

1.60%

 

 

1.69%

 

 

 

 

 

 

 

 

6 Months Ended June 30,

 

 

 

 

2022

2021

 

 

 

Net income

$

76,901

 

$

80,142

 

 

 

 

Income tax expense

 

22,099

 

 

23,150

 

 

 

 

Provision for loan losses

 

4,986

 

 

(8,012

)

 

 

 

FTE adjustment

 

575

 

 

601

 

 

 

 

Net securities losses (gains)

 

766

 

 

(668

)

 

 

 

Provision for unfunded loan commitments reserve

 

(20

)

 

(580

)

 

 

 

Nonrecurring expense

 

(172

)

 

1,880

 

 

 

 

PPNR

$

105,135

 

$

96,513

 

 

 

 

 

 

 

 

 

 

Average Assets

$

11,951,133

 

$

11,353,800

 

 

 

 

 

 

 

 

 

 

Return on average assets3

 

1.30%

 

 

1.42%

 

 

 

 

PPNR return on average assets3

 

1.77%

 

 

1.71%

 

 

 

 

 

 

 

 

 

 

PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense.

 

 

 

 

 

 

FTE adjustment

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Net interest income

$

87,585

 

$

80,348

 

$

85,181

 

$

77,674

 

$

79,178

 

Add: FTE adjustment

 

290

 

 

285

 

 

292

 

 

298

 

 

299

 

Net interest income (FTE)

$

87,875

 

$

80,633

 

$

85,473

 

$

77,972

 

$

79,477

 

Average earning assets

$

10,983,020

 

$

11,089,110

 

$

11,017,224

 

$

10,727,498

 

$

10,631,071

 

Net interest margin (FTE)3

 

3.21%

 

 

2.95%

 

 

3.08%

 

 

2.88%

 

 

3.00%

 

 

 

 

 

 

 

 

6 Months Ended June 30,

 

 

 

 

2022

2021

 

 

 

Net interest income

$

167,933

 

$

158,233

 

 

 

 

Add: FTE adjustment

 

575

 

 

601

 

 

 

 

Net interest income (FTE)

$

168,508

 

$

158,834

 

 

 

 

Average earning assets

$

11,035,772

 

$

10,387,433

 

 

 

 

Net interest margin (FTE)3

 

3.08%

 

 

3.08%

 

 

 

 

 

 

 

 

 

 

Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.

 

 

 

 

 

 


 

 

 

 

 

 

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

 

 

 

 

 

 

Non-GAAP measures

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Total equity

$

1,188,556

 

$

1,202,250

 

$

1,250,453

 

$

1,241,457

 

$

1,225,056

 

Intangible assets

 

289,259

 

 

288,832

 

 

289,468

 

 

290,119

 

 

290,782

 

Total assets

$

11,720,459

 

$

12,147,833

 

$

12,012,111

 

$

11,994,411

 

$

11,574,947

 

Tangible equity to tangible assets

 

7.87%

 

 

7.70%

 

 

8.20%

 

 

8.13%

 

 

8.28%

 

 

 

 

 

 

 

Return on average tangible common equity

2022

2021

 

2nd Q

1st Q

4th Q

3rd Q

2nd Q

Net income

$

37,775

 

$

39,126

 

$

37,310

 

$

37,433

 

$

40,296

 

Amortization of intangible assets (net of tax)

 

409

 

 

477

 

 

488

 

 

497

 

 

512

 

Net income, excluding intangibles amortization

$

38,184

 

$

39,603

 

$

37,798

 

$

37,930

 

$

40,808

 

 

 

 

 

 

 

Average stockholders' equity

$

1,190,585

 

$

1,241,188

 

$

1,244,751

 

$

1,233,045

 

$

1,203,974

 

Less: average goodwill and other intangibles

 

289,584

 

 

289,218

 

 

289,834

 

 

290,492

 

 

291,133

 

Average tangible common equity

$

901,001

 

$

951,970

 

$

954,917

 

$

942,553

 

$

912,841

 

Return on average tangible common equity3

 

17.00%

 

 

16.87%

 

 

15.70%

 

 

15.97%

 

 

17.93%

 

 

 

 

 

 

 

 

6 Months Ended June 30,

 

 

 

 

2022

2021

 

 

 

Net income

$

76,901

 

$

80,142

 

 

 

 

Amortization of intangible assets (net of tax)

 

886

 

 

1,121

 

 

 

 

Net income, excluding intangibles amortization

$

77,787

 

$

81,263

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

$

1,215,747

 

$

1,197,662

 

 

 

 

Less: average goodwill and other intangibles

 

289,402

 

 

291,525

 

 

 

 

Average tangible common equity

$

926,345

 

$

906,137

 

 

 

 

Return on average tangible common equity3

 

16.93%

 

 

18.08%

 

 

 

 

 

 

 

 

 

 

2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.

 

3Annualized.

 

 

 

 

 

4Total past due loans, defined as loans 30 days or more past due and in an accrual status.

 

 

5Securities are shown at average amortized cost.

 

 

 

 

6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.