DELAWARE
|
0-14703
|
16-1268674
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
o
|
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d)
|
The following is being furnished herewith:
|
Exhibit No. | Exhibit Description |
99.1 | Press release text of NBT Bancorp Inc. dated July 28, 2014 |
|
NBT BANCORP INC.
|
|
|
(Registrant)
|
|
|
|
|
|
/s/ Michael J. Chewens
|
|
|
Michael J. Chewens
|
|
|
Senior Executive Vice President
|
|
|
and Chief Financial Officer
|
FOR IMMEDIATE RELEASE |
ATTENTION: FINANCIAL AND BUSINESS EDITORS |
Contact:
|
Martin A. Dietrich, CEO
|
|
Michael J. Chewens, CFO
|
|
NBT Bancorp Inc.
|
|
52 South Broad Street
|
|
Norwich, NY 13815
|
|
607-337-6119
|
·
|
Strong organic loan growth continued in the second quarter of 2014 annualized at 6.8%
|
·
|
Past due loans to total loans was 0.57% for the second quarter of 2014, consistent with the previous quarter, and down from 0.77% at the end of 2013
|
·
|
Sold 20% ownership interest in Springstone recognizing a $19.4 million gain during the quarter
|
·
|
Restructured $165 million in long-term borrowings, resulting in $4.6 million in prepayment penalties (non-core) recognized in the second quarter of 2014 and expecting to recognize additional prepayment penalties (non-core) in the third quarter of 2014 upon completion of the restructure strategy
|
o
|
The fully executed strategy is expected to lower the cost of the restructured long-term debt by approximately 200 basis points and is expected to improve our interest rate risk profile
|
SELECTED FINANCIAL DATA
|
(unaudited, dollars in thousands except per share data)
|
|
2014
|
2013
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
Reconciliation of Non-GAAP Financial Measures:
|
||||||||||||||||||||
Reported net income (GAAP)
|
$
|
27,640
|
$
|
18,009
|
$
|
17,925
|
$
|
19,257
|
$
|
16,916
|
||||||||||
Adj: (Gain) / Loss on sale of securities, net (net of tax)
|
(9
|
)
|
(5
|
)
|
(9
|
)
|
(228
|
)
|
42
|
|||||||||||
Adj: Other adjustments (net of tax) (1)
|
(315
|
)
|
430
|
402
|
110
|
-
|
||||||||||||||
Adj: Gain on sale of Springstone (net of tax and related incentive compensation)
|
(11,168
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Adj: Prepayment penalties related to debt restructuring (net of tax)
|
2,925
|
-
|
-
|
-
|
-
|
|||||||||||||||
Plus: Merger related expenses (net of tax)
|
-
|
-
|
59
|
224
|
882
|
|||||||||||||||
Total Adjustments
|
(8,567
|
)
|
425
|
452
|
106
|
924
|
||||||||||||||
Core net income
|
$
|
19,073
|
$
|
18,434
|
$
|
18,377
|
$
|
19,363
|
$
|
17,840
|
||||||||||
|
||||||||||||||||||||
Profitability:
|
||||||||||||||||||||
Core Diluted Earnings Per Share
|
$
|
0.43
|
$
|
0.42
|
$
|
0.42
|
$
|
0.44
|
$
|
0.40
|
||||||||||
Diluted Earnings Per Share
|
$
|
0.62
|
$
|
0.41
|
$
|
0.41
|
$
|
0.44
|
$
|
0.38
|
||||||||||
Weighted Average Diluted Common Shares Outstanding
|
44,363,787
|
44,296,445
|
44,121,102
|
44,135,114
|
44,316,531
|
|||||||||||||||
Core Return on Average Assets (2)
|
0.99
|
%
|
0.98
|
%
|
0.96
|
%
|
1.02
|
%
|
0.95
|
%
|
||||||||||
Return on Average Assets (2)
|
1.43
|
%
|
0.95
|
%
|
0.94
|
%
|
1.01
|
%
|
0.90
|
%
|
||||||||||
Core Return on Average Equity (2)
|
9.06
|
%
|
9.02
|
%
|
9.04
|
%
|
9.67
|
%
|
8.88
|
%
|
||||||||||
Return on Average Equity (2)
|
13.12
|
%
|
8.81
|
%
|
8.81
|
%
|
9.62
|
%
|
8.42
|
%
|
||||||||||
Core Return on Average Tangible Common Equity (2)(4)
|
14.27
|
%
|
14.48
|
%
|
14.77
|
%
|
15.95
|
%
|
14.57
|
%
|
||||||||||
Return on Average Tangible Common Equity (2)(4)
|
20.43
|
%
|
14.16
|
%
|
14.42
|
%
|
15.86
|
%
|
13.85
|
%
|
||||||||||
Net Interest Margin (2)(3)
|
3.60
|
%
|
3.63
|
%
|
3.61
|
%
|
3.65
|
%
|
3.69
|
%
|
Six Months Ended June 30,
|
||||||||
|
|
|
||||||
Reconciliation of Non-GAAP Financial Measures:
|
2014
|
2013
|
||||||
Reported net income (GAAP)
|
$
|
45,649
|
$
|
24,565
|
||||
Adj: Gain on sale of securities, net (net of tax)
|
(14
|
)
|
(753
|
)
|
||||
Adj: Other adjustments (net of tax) (6)
|
115
|
-
|
||||||
Adj: Gain on sale of Springstone (net of tax and related incentive compensation)
|
(11,168
|
)
|
-
|
|||||
Adj: Prepayment penalties related to debt restructuring (net of tax)
|
2,925
|
-
|
||||||
Plus: Merger related expenses (net of tax)
|
-
|
8,305
|
||||||
Total Adjustments
|
(8,142
|
)
|
7,552
|
|||||
Core net income
|
$
|
37,507
|
$
|
32,117
|
||||
|
||||||||
Profitability:
|
||||||||
Core Diluted Earnings Per Share
|
$
|
0.85
|
$
|
0.79
|
||||
Diluted Earnings Per Share
|
$
|
1.03
|
$
|
0.61
|
||||
Weighted Average Diluted Common Shares Outstanding
|
44,328,854
|
40,574,934
|
||||||
Core Return on Average Assets (2)
|
0.98
|
%
|
0.93
|
%
|
||||
Return on Average Assets (2)
|
1.20
|
%
|
0.71
|
%
|
||||
Core Return on Average Equity (2)
|
9.04
|
%
|
8.93
|
%
|
||||
Return on Average Equity (2)
|
11.00
|
%
|
6.83
|
%
|
||||
Core Return on Average Tangible Common Equity (2)(5)
|
14.38
|
%
|
14.11
|
%
|
||||
Return on Average Tangible Common Equity (2)(5)
|
17.37
|
%
|
10.93
|
%
|
||||
Net Interest Margin (2)(3)
|
3.62
|
%
|
3.68
|
%
|
(1)
|
Primarily net gain on settlement of litigation and reorganization expenses for 2014 and reorganization expenses for 2013
|
(2)
|
Annualized
|
(3)
|
Calculated on a Fully Tax Equivalent (“FTE”) basis
|
(4)
|
Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
|
|
2014
|
2013
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
Average stockholders' equity
|
$
|
844,707
|
$
|
828,588
|
$
|
806,791
|
$
|
794,273
|
$
|
806,200
|
||||||||||
Less: average goodwill and other intangibles
|
287,366
|
290,019
|
291,659
|
292,271
|
292,775
|
|||||||||||||||
Average tangible common equity
|
$
|
557,341
|
$
|
538,569
|
$
|
515,132
|
$
|
502,002
|
$
|
513,425
|
(5)
|
Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
|
|
6 Months ended June 30,
|
|||||||
|
2014
|
2013
|
||||||
Average stockholders' equity
|
$
|
836,692
|
$
|
724,898
|
||||
Less: average goodwill and other intangibles
|
288,685
|
247,031
|
||||||
Average tangible common equity
|
$
|
548,007
|
$
|
477,867
|
(6)
|
Primarily net gain on settlement of litigation and reorganization expenses for 2014.
|
SELECTED FINANCIAL DATA
|
(unaudited, dollars in thousands except per share data)
|
|
2014
|
2013
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
Balance Sheet Data:
|
||||||||||||||||||||
Securities Available for Sale
|
$
|
1,378,799
|
$
|
1,377,585
|
$
|
1,364,881
|
$
|
1,385,734
|
$
|
1,390,403
|
||||||||||
Securities Held to Maturity
|
125,965
|
117,896
|
117,283
|
118,259
|
122,302
|
|||||||||||||||
Net Loans
|
5,504,954
|
5,412,591
|
5,337,361
|
5,297,047
|
5,219,526
|
|||||||||||||||
Total Assets
|
7,869,512
|
7,753,129
|
7,652,175
|
7,668,903
|
7,534,518
|
|||||||||||||||
Total Deposits
|
6,042,588
|
6,068,898
|
5,890,224
|
6,003,138
|
5,878,176
|
|||||||||||||||
Total Borrowings
|
886,799
|
766,753
|
866,061
|
783,439
|
795,918
|
|||||||||||||||
Total Liabilities
|
7,012,371
|
6,920,927
|
6,835,606
|
6,873,344
|
6,742,943
|
|||||||||||||||
Stockholders' Equity
|
857,141
|
832,202
|
816,569
|
795,559
|
791,575
|
|||||||||||||||
|
||||||||||||||||||||
Asset Quality:
|
||||||||||||||||||||
Nonaccrual Loans
|
$
|
51,234
|
$
|
51,464
|
$
|
49,965
|
$
|
41,418
|
$
|
40,525
|
||||||||||
90 Days Past Due and Still Accruing
|
2,186
|
2,700
|
3,737
|
3,286
|
2,004
|
|||||||||||||||
Total Nonperforming Loans
|
53,420
|
54,164
|
53,702
|
44,704
|
42,529
|
|||||||||||||||
Other Real Estate Owned
|
1,953
|
2,564
|
2,904
|
3,626
|
3,757
|
|||||||||||||||
Total Nonperforming Assets
|
55,373
|
56,728
|
56,606
|
48,330
|
46,286
|
|||||||||||||||
Allowance for Loan Losses
|
69,534
|
69,434
|
69,434
|
70,184
|
71,184
|
|||||||||||||||
Allowance for Loan Losses to Total Originated Loans (1)
|
1.44
|
%
|
1.51
|
%
|
1.55
|
%
|
1.60
|
%
|
1.68
|
%
|
||||||||||
Allowance for Loan Losses to Total Loans
|
1.25
|
%
|
1.27
|
%
|
1.28
|
%
|
1.31
|
%
|
1.35
|
%
|
||||||||||
Total Nonperforming Loans to Total Loans
|
0.96
|
%
|
0.99
|
%
|
0.99
|
%
|
0.83
|
%
|
0.80
|
%
|
||||||||||
Total Nonperforming Assets to Total Assets
|
0.70
|
%
|
0.73
|
%
|
0.74
|
%
|
0.63
|
%
|
0.61
|
%
|
||||||||||
Past Due Loans to Total Loans
|
0.57
|
%
|
0.57
|
%
|
0.77
|
%
|
0.70
|
%
|
0.71
|
%
|
||||||||||
Allowance for Loan Losses to Total Nonperforming Loans
|
130.16
|
%
|
128.19
|
%
|
129.29
|
%
|
157.00
|
%
|
167.38
|
%
|
||||||||||
Net Charge-Offs to Average Loans (3)
|
0.30
|
%
|
0.27
|
%
|
0.44
|
%
|
0.46
|
%
|
0.30
|
%
|
||||||||||
|
||||||||||||||||||||
Capital:
|
||||||||||||||||||||
Equity to Assets
|
10.89
|
%
|
10.73
|
%
|
10.67
|
%
|
10.37
|
%
|
10.51
|
%
|
||||||||||
Book Value Per Share
|
$
|
19.61
|
$
|
19.09
|
$
|
18.77
|
$
|
18.38
|
$
|
18.18
|
||||||||||
Tangible Book Value Per Share (2)
|
$
|
13.06
|
$
|
12.48
|
$
|
12.09
|
$
|
11.64
|
$
|
11.46
|
||||||||||
Tier 1 Leverage Ratio
|
9.23
|
%
|
9.05
|
%
|
8.93
|
%
|
8.79
|
%
|
8.72
|
%
|
||||||||||
Tier 1 Capital Ratio
|
11.95
|
%
|
11.81
|
%
|
11.74
|
%
|
11.46
|
%
|
11.20
|
%
|
||||||||||
Total Risk-Based Capital Ratio
|
13.20
|
%
|
13.06
|
%
|
12.99
|
%
|
12.71
|
%
|
12.45
|
%
|
||||||||||
Common Stock Price (End of Period)
|
$
|
24.02
|
$
|
24.46
|
$
|
25.90
|
$
|
22.98
|
$
|
21.17
|
(1)
|
Excludes acquired loans
|
(2)
|
Stockholders' equity less goodwill and intangible assets divided by common shares outstanding
|
(3)
|
Annualized
|
Note:
|
Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
|
CONSOLIDATED BALANCE SHEETS
|
(unaudited, dollars in thousands)
|
|
June 30,
|
December 31,
|
||||||
ASSETS
|
2014
|
2013
|
||||||
Cash and due from banks
|
$
|
178,539
|
$
|
157,625
|
||||
Short term interest bearing accounts
|
4,798
|
1,301
|
||||||
Securities available for sale, at fair value
|
1,378,799
|
1,364,881
|
||||||
Securities held to maturity (fair value of $123,376 and $113,276 at June 30, 2014 and December 31, 2013, respectively)
|
||||||||
Trading securities
|
7,355
|
5,779
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
49,093
|
46,864
|
||||||
Loans
|
5,574,488
|
5,406,795
|
||||||
Less allowance for loan losses
|
69,534
|
69,434
|
||||||
Net loans
|
5,504,954
|
5,337,361
|
||||||
Premises and equipment, net
|
87,972
|
88,327
|
||||||
Goodwill
|
263,634
|
264,997
|
||||||
Intangible assets, net
|
22,819
|
25,557
|
||||||
Bank owned life insurance
|
116,007
|
114,966
|
||||||
Other assets
|
129,577
|
127,234
|
||||||
TOTAL ASSETS
|
$
|
7,869,512
|
$
|
7,652,175
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Demand (noninterest bearing)
|
$
|
1,676,246
|
$
|
1,645,641
|
||||
Savings, NOW, and money market
|
3,363,911
|
3,223,441
|
||||||
Time
|
1,002,431
|
1,021,142
|
||||||
Total deposits
|
6,042,588
|
5,890,224
|
||||||
Short-term borrowings
|
534,478
|
456,042
|
||||||
Long-term debt
|
251,125
|
308,823
|
||||||
Junior subordinated debt
|
101,196
|
101,196
|
||||||
Other liabilities
|
82,984
|
79,321
|
||||||
Total liabilities
|
7,012,371
|
6,835,606
|
||||||
|
||||||||
Total stockholders' equity
|
857,141
|
816,569
|
||||||
|
||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
7,869,512
|
$
|
7,652,175
|
CONSOLIDATED STATEMENTS OF INCOME
|
(unaudited, dollars in thousands except per share data)
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Interest, fee and dividend income:
|
||||||||||||||||
Loans
|
$
|
60,559
|
$
|
62,031
|
$
|
120,574
|
$
|
115,726
|
||||||||
Securities available for sale
|
6,612
|
6,537
|
13,369
|
12,283
|
||||||||||||
Securities held to maturity
|
783
|
548
|
1,551
|
1,073
|
||||||||||||
Other
|
502
|
488
|
1,039
|
891
|
||||||||||||
Total interest, fee and dividend income
|
68,456
|
69,604
|
136,533
|
129,973
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
3,000
|
4,296
|
6,284
|
8,446
|
||||||||||||
Short-term borrowings
|
209
|
67
|
440
|
109
|
||||||||||||
Long-term debt
|
2,135
|
3,026
|
4,642
|
6,635
|
||||||||||||
Junior subordinated debt
|
538
|
560
|
1,076
|
988
|
||||||||||||
Total interest expense
|
5,882
|
7,949
|
12,442
|
16,178
|
||||||||||||
Net interest income
|
62,574
|
61,655
|
124,091
|
113,795
|
||||||||||||
Provision for loan losses
|
4,166
|
6,402
|
7,762
|
12,060
|
||||||||||||
Net interest income after provision for loan losses
|
58,408
|
55,253
|
116,329
|
101,735
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Insurance and other financial services revenue
|
5,594
|
5,755
|
12,331
|
12,648
|
||||||||||||
Service charges on deposit accounts
|
4,397
|
4,933
|
8,766
|
9,256
|
||||||||||||
ATM and debit card fees
|
4,357
|
4,044
|
8,429
|
7,286
|
||||||||||||
Retirement plan administration fees
|
2,977
|
2,957
|
5,895
|
5,639
|
||||||||||||
Trust
|
4,953
|
4,699
|
9,399
|
7,612
|
||||||||||||
Bank owned life insurance income
|
978
|
886
|
2,360
|
1,735
|
||||||||||||
Net securities gains (losses)
|
14
|
(61
|
)
|
21
|
1,084
|
|||||||||||
Gain on the sale of Springstone investment
|
19,401
|
-
|
19,401
|
-
|
||||||||||||
Other
|
3,356
|
2,324
|
5,702
|
5,506
|
||||||||||||
Total noninterest income
|
46,027
|
25,537
|
72,304
|
50,766
|
||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
31,142
|
29,160
|
60,676
|
56,207
|
||||||||||||
Occupancy
|
5,435
|
5,219
|
11,661
|
10,196
|
||||||||||||
Data processing and communications
|
4,015
|
3,854
|
8,016
|
7,309
|
||||||||||||
Professional fees and outside services
|
3,752
|
3,237
|
7,167
|
6,138
|
||||||||||||
Equipment
|
3,132
|
2,910
|
6,248
|
5,492
|
||||||||||||
Office supplies and postage
|
1,803
|
1,656
|
3,488
|
3,246
|
||||||||||||
FDIC expenses
|
1,229
|
1,273
|
2,507
|
2,403
|
||||||||||||
Advertising
|
726
|
1,000
|
1,465
|
1,723
|
||||||||||||
Amortization of intangible assets
|
1,236
|
1,351
|
2,546
|
2,202
|
||||||||||||
Loan collection and other real estate owned
|
801
|
421
|
1,841
|
1,139
|
||||||||||||
Merger related
|
-
|
1,269
|
-
|
11,950
|
||||||||||||
Prepayment penalties on long term debt
|
4,554
|
-
|
4,554
|
-
|
||||||||||||
Other operating
|
4,911
|
5,100
|
10,084
|
9,150
|
||||||||||||
Total noninterest expense
|
62,736
|
56,450
|
120,253
|
117,155
|
||||||||||||
Income before income taxes
|
41,699
|
24,340
|
68,380
|
35,346
|
||||||||||||
Income taxes
|
14,059
|
7,424
|
22,731
|
10,781
|
||||||||||||
Net income
|
$
|
27,640
|
$
|
16,916
|
$
|
45,649
|
$
|
24,565
|
||||||||
Earnings Per Share:
|
||||||||||||||||
Basic
|
$
|
0.63
|
$
|
0.39
|
$
|
1.04
|
$
|
0.61
|
||||||||
Diluted
|
$
|
0.62
|
$
|
0.38
|
$
|
1.03
|
$
|
0.61
|
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
|
(unaudited, dollars in thousands except per share data)
|
|
2014
|
2013
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
Interest, fee and dividend income:
|
||||||||||||||||||||
Loans
|
$
|
60,559
|
$
|
60,015
|
$
|
61,173
|
$
|
61,773
|
$
|
62,031
|
||||||||||
Securities available for sale
|
6,612
|
6,757
|
6,707
|
6,520
|
6,537
|
|||||||||||||||
Securities held to maturity
|
783
|
768
|
783
|
804
|
548
|
|||||||||||||||
Other
|
502
|
537
|
518
|
472
|
488
|
|||||||||||||||
Total interest, fee and dividend income
|
68,456
|
68,077
|
69,181
|
69,569
|
69,604
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Deposits
|
3,000
|
3,284
|
3,845
|
3,999
|
4,296
|
|||||||||||||||
Short-term borrowings
|
209
|
231
|
174
|
232
|
67
|
|||||||||||||||
Long-term debt
|
2,135
|
2,507
|
2,559
|
2,561
|
3,026
|
|||||||||||||||
Junior subordinated debt
|
538
|
538
|
545
|
551
|
560
|
|||||||||||||||
Total interest expense
|
5,882
|
6,560
|
7,123
|
7,343
|
7,949
|
|||||||||||||||
Net interest income
|
62,574
|
61,517
|
62,058
|
62,226
|
61,655
|
|||||||||||||||
Provision for loan losses
|
4,166
|
3,596
|
5,166
|
5,198
|
6,402
|
|||||||||||||||
Net interest income after provision for loan losses
|
58,408
|
57,921
|
56,892
|
57,028
|
55,253
|
|||||||||||||||
Noninterest income:
|
||||||||||||||||||||
Insurance and other financial services revenue
|
5,594
|
6,737
|
5,761
|
6,038
|
5,755
|
|||||||||||||||
Service charges on deposit accounts
|
4,397
|
4,369
|
4,996
|
5,055
|
4,933
|
|||||||||||||||
ATM and debit card fees
|
4,357
|
4,072
|
3,996
|
4,276
|
4,044
|
|||||||||||||||
Retirement plan administration fees
|
2,977
|
2,918
|
2,796
|
3,062
|
2,957
|
|||||||||||||||
Trust
|
4,953
|
4,446
|
4,725
|
4,345
|
4,699
|
|||||||||||||||
Bank owned life insurance income
|
978
|
1,382
|
1,145
|
913
|
886
|
|||||||||||||||
Net securities gains (losses)
|
14
|
7
|
13
|
329
|
(61
|
)
|
||||||||||||||
Gain on the sale of Springstone investment
|
19,401
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other
|
3,356
|
2,346
|
1,870
|
3,129
|
2,324
|
|||||||||||||||
Total noninterest income
|
46,027
|
26,277
|
25,302
|
27,147
|
25,537
|
|||||||||||||||
Noninterest expense:
|
||||||||||||||||||||
Salaries and employee benefits
|
31,142
|
29,534
|
28,106
|
29,267
|
29,160
|
|||||||||||||||
Occupancy
|
5,435
|
6,226
|
5,262
|
5,262
|
5,219
|
|||||||||||||||
Data processing and communications
|
4,015
|
4,001
|
3,985
|
4,059
|
3,854
|
|||||||||||||||
Professional fees and outside services
|
3,752
|
3,415
|
3,969
|
3,202
|
3,237
|
|||||||||||||||
Equipment
|
3,132
|
3,116
|
3,013
|
2,988
|
2,910
|
|||||||||||||||
Office supplies and postage
|
1,803
|
1,685
|
1,677
|
1,640
|
1,656
|
|||||||||||||||
FDIC expenses
|
1,229
|
1,278
|
1,272
|
1,285
|
1,273
|
|||||||||||||||
Advertising
|
726
|
739
|
759
|
722
|
1,000
|
|||||||||||||||
Amortization of intangible assets
|
1,236
|
1,310
|
1,324
|
1,346
|
1,351
|
|||||||||||||||
Loan collection and other real estate owned
|
801
|
1,040
|
594
|
886
|
421
|
|||||||||||||||
Merger
|
-
|
-
|
88
|
326
|
1,269
|
|||||||||||||||
Prepayment penalties on long term debt
|
4,554
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other operating
|
4,911
|
5,173
|
5,437
|
5,303
|
5,100
|
|||||||||||||||
Total noninterest expense
|
62,736
|
57,517
|
55,486
|
56,286
|
56,450
|
|||||||||||||||
Income before income taxes
|
41,699
|
26,681
|
26,708
|
27,889
|
24,340
|
|||||||||||||||
Income taxes
|
14,059
|
8,672
|
8,783
|
8,632
|
7,424
|
|||||||||||||||
Net income
|
$
|
27,640
|
$
|
18,009
|
$
|
17,925
|
$
|
19,257
|
$
|
16,916
|
||||||||||
Earnings per share:
|
||||||||||||||||||||
Basic
|
$
|
0.63
|
$
|
0.41
|
$
|
0.41
|
$
|
0.44
|
$
|
0.39
|
||||||||||
Diluted
|
$
|
0.62
|
$
|
0.41
|
$
|
0.41
|
$
|
0.44
|
$
|
0.38
|
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 - 2014
|
Q1 - 2014
|
Q4 - 2013
|
Q3 - 2013
|
Q2 - 2013
|
||||||||||||||||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||||||||||||||||||
Short-term interest bearing accounts
|
$
|
3,915
|
0.76
|
%
|
$
|
2,733
|
1.02
|
%
|
$
|
4,798
|
0.81
|
%
|
$
|
1,955
|
1.73
|
%
|
$
|
41,313
|
0.57
|
%
|
||||||||||||||||||||
Securities available for sale (1)(2)
|
1,376,314
|
2.05
|
%
|
1,381,744
|
2.11
|
%
|
1,383,273
|
2.05
|
%
|
1,387,714
|
2.00
|
%
|
1,428,864
|
1.97
|
%
|
|||||||||||||||||||||||||
Securities held to maturity (1)
|
121,042
|
3.43
|
%
|
116,613
|
3.52
|
%
|
117,574
|
3.47
|
%
|
118,781
|
3.54
|
%
|
62,463
|
5.23
|
%
|
|||||||||||||||||||||||||
Investment in FRB and FHLB Banks
|
42,965
|
4.63
|
%
|
43,596
|
4.94
|
%
|
41,115
|
4.92
|
%
|
43,895
|
4.20
|
%
|
35,497
|
4.85
|
%
|
|||||||||||||||||||||||||
Loans (3)
|
5,517,315
|
4.42
|
%
|
5,425,938
|
4.50
|
%
|
5,369,474
|
4.54
|
%
|
5,309,446
|
4.63
|
%
|
5,243,534
|
4.76
|
%
|
|||||||||||||||||||||||||
Total interest earning assets
|
$
|
7,061,551
|
3.94
|
%
|
$
|
6,970,624
|
4.01
|
%
|
$
|
6,916,234
|
4.02
|
%
|
$
|
6,861,791
|
4.08
|
%
|
$
|
6,811,671
|
4.16
|
%
|
||||||||||||||||||||
Other assets
|
680,059
|
679,246
|
680,435
|
671,482
|
705,869
|
|||||||||||||||||||||||||||||||||||
Total assets
|
$
|
7,741,610
|
$
|
7,649,870
|
$
|
7,596,669
|
$
|
7,533,273
|
$
|
7,517,540
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||||||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
$
|
1,441,284
|
0.15
|
%
|
$
|
1,411,444
|
0.15
|
%
|
$
|
1,419,458
|
0.15
|
%
|
$
|
1,360,067
|
0.15
|
%
|
$
|
1,402,429
|
0.15
|
%
|
||||||||||||||||||||
NOW deposit accounts
|
960,698
|
0.06
|
%
|
932,528
|
0.05
|
%
|
925,544
|
0.13
|
%
|
877,387
|
0.13
|
%
|
927,037
|
0.19
|
%
|
|||||||||||||||||||||||||
Savings deposits
|
1,040,528
|
0.07
|
%
|
1,000,029
|
0.07
|
%
|
973,650
|
0.08
|
%
|
984,093
|
0.09
|
%
|
983,413
|
0.09
|
%
|
|||||||||||||||||||||||||
Time deposits
|
971,595
|
0.88
|
%
|
999,579
|
0.99
|
%
|
1,042,710
|
1.07
|
%
|
1,081,549
|
1.09
|
%
|
1,136,511
|
1.10
|
%
|
|||||||||||||||||||||||||
Total interest bearing deposits
|
$
|
4,414,105
|
0.27
|
%
|
$
|
4,343,580
|
0.31
|
%
|
$
|
4,361,362
|
0.35
|
%
|
$
|
4,303,096
|
0.37
|
%
|
$
|
4,449,390
|
0.39
|
%
|
||||||||||||||||||||
Short-term borrowings
|
383,480
|
0.22
|
%
|
398,951
|
0.24
|
%
|
338,476
|
0.20
|
%
|
383,238
|
0.24
|
%
|
229,906
|
0.12
|
%
|
|||||||||||||||||||||||||
Junior subordinated debentures
|
101,196
|
2.13
|
%
|
101,196
|
2.16
|
%
|
101,196
|
2.14
|
%
|
101,196
|
2.16
|
%
|
101,196
|
2.22
|
%
|
|||||||||||||||||||||||||
Long-term debt
|
290,791
|
2.95
|
%
|
308,760
|
3.29
|
%
|
308,969
|
3.29
|
%
|
309,069
|
3.29
|
%
|
355,702
|
3.41
|
%
|
|||||||||||||||||||||||||
Total interest bearing liabilities
|
$
|
5,189,572
|
0.45
|
%
|
$
|
5,152,487
|
0.52
|
%
|
$
|
5,110,003
|
0.55
|
%
|
$
|
5,096,599
|
0.57
|
%
|
$
|
5,136,194
|
0.62
|
%
|
||||||||||||||||||||
Demand deposits
|
1,620,488
|
1,589,865
|
1,595,145
|
1,559,506
|
1,496,486
|
|||||||||||||||||||||||||||||||||||
Other liabilities
|
86,843
|
78,930
|
84,730
|
82,896
|
78,660
|
|||||||||||||||||||||||||||||||||||
Stockholders' equity
|
844,707
|
828,588
|
806,791
|
794,272
|
806,200
|
|||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
7,741,610
|
$
|
7,649,870
|
$
|
7,596,669
|
$
|
7,533,273
|
$
|
7,517,540
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Interest rate spread
|
3.49
|
%
|
3.49
|
%
|
3.47
|
%
|
3.51
|
%
|
3.54
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
|
3.60
|
%
|
3.63
|
%
|
3.61
|
%
|
3.65
|
%
|
3.69
|
%
|
(1)
|
Securities are shown at average amortized cost
|
(2)
|
Excluding unrealized gains or losses
|
(3)
|
For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding
|
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,
|
2014
|
2013
|
||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Short-term interest bearing accounts
|
$
|
3,328
|
$
|
14
|
0.87
|
%
|
$
|
58,118
|
$
|
98
|
0.34
|
%
|
||||||||||||
Securities available for sale (1)(2)
|
1,379,014
|
14,212
|
2.08
|
%
|
1,313,691
|
13,212
|
2.03
|
%
|
||||||||||||||||
Securities held to maturity (1)
|
118,840
|
2,048
|
3.48
|
%
|
57,710
|
1,605
|
5.61
|
%
|
||||||||||||||||
Investment in FRB and FHLB Banks
|
43,279
|
1,028
|
4.79
|
%
|
33,416
|
796
|
4.80
|
%
|
||||||||||||||||
Loans and leases (3)
|
5,471,879
|
121,002
|
4.46
|
%
|
4,869,896
|
116,171
|
4.81
|
%
|
||||||||||||||||
Total interest earning assets
|
$
|
7,016,340
|
$
|
138,304
|
3.98
|
%
|
$
|
6,332,831
|
$
|
131,882
|
4.20
|
%
|
||||||||||||
Other assets
|
679,654
|
360,532
|
||||||||||||||||||||||
Total assets
|
$
|
7,695,994
|
$
|
6,693,363
|
||||||||||||||||||||
|
||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||||||||||||||||||||||
Money market deposit accounts
|
$
|
1,426,446
|
1,066
|
0.15
|
%
|
$
|
1,297,077
|
$
|
934
|
0.15
|
%
|
|||||||||||||
NOW deposit accounts
|
946,691
|
256
|
0.05
|
%
|
863,481
|
889
|
0.21
|
%
|
||||||||||||||||
Savings deposits
|
1,020,391
|
369
|
0.07
|
%
|
877,574
|
354
|
0.08
|
%
|
||||||||||||||||
Time deposits
|
985,510
|
4,593
|
0.94
|
%
|
1,076,445
|
6,269
|
1.17
|
%
|
||||||||||||||||
Total interest bearing deposits
|
$
|
4,379,038
|
$
|
6,284
|
0.29
|
%
|
$
|
4,114,577
|
$
|
8,446
|
0.41
|
%
|
||||||||||||
Short-term borrowings
|
391,173
|
440
|
0.23
|
%
|
199,513
|
109
|
0.11
|
%
|
||||||||||||||||
Trust preferred debentures
|
101,196
|
1,076
|
2.14
|
%
|
91,798
|
988
|
2.17
|
%
|
||||||||||||||||
Long-term debt
|
299,726
|
4,642
|
3.12
|
%
|
368,867
|
6,635
|
3.63
|
%
|
||||||||||||||||
Total interest bearing liabilities
|
$
|
5,171,133
|
$
|
12,442
|
0.49
|
%
|
$
|
4,774,755
|
$
|
16,178
|
0.68
|
%
|
||||||||||||
Demand deposits
|
1,605,261
|
1,390,700
|
||||||||||||||||||||||
Other liabilities
|
82,908
|
73,010
|
||||||||||||||||||||||
Stockholders' equity
|
836,692
|
724,898
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
7,695,994
|
$
|
6,963,363
|
||||||||||||||||||||
Net interest income (FTE)
|
125,862
|
115,704
|
||||||||||||||||||||||
Interest rate spread
|
3.49
|
%
|
3.52
|
%
|
||||||||||||||||||||
Net interest margin
|
3.62
|
%
|
3.68
|
%
|
||||||||||||||||||||
Taxable equivalent adjustment
|
1,771
|
1,909
|
||||||||||||||||||||||
Net interest income
|
$
|
124,091
|
$
|
113,795
|
(1)
|
Securities are shown at average amortized cost
|
(2)
|
Excluding unrealized gains or losses
|
(3)
|
For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding
|
CONSOLIDATED LOAN BALANCES
|
(unaudited, dollars in thousands)
|
|
2014
|
2013
|
||||||||||||||||||
|
2nd Q
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
|||||||||||||||
Residential real estate mortgages
|
$
|
1,073,207
|
$
|
1,056,793
|
$
|
1,041,637
|
$
|
1,028,158
|
$
|
1,001,642
|
||||||||||
Commercial
|
895,128
|
878,152
|
859,026
|
849,095
|
867,513
|
|||||||||||||||
Commercial real estate mortgages
|
1,378,065
|
1,347,940
|
1,328,313
|
1,302,978
|
1,241,271
|
|||||||||||||||
Real estate construction and development
|
94,019
|
99,295
|
93,247
|
116,662
|
152,548
|
|||||||||||||||
Agricultural and agricultural real estate mortgages
|
109,035
|
110,815
|
112,035
|
110,113
|
107,565
|
|||||||||||||||
Consumer
|
1,435,643
|
1,387,221
|
1,352,638
|
1,327,203
|
1,284,888
|
|||||||||||||||
Home equity
|
589,391
|
601,809
|
619,899
|
633,022
|
635,283
|
|||||||||||||||
Total loans
|
$
|
5,574,488
|
$
|
5,482,025
|
$
|
5,406,795
|
$
|
5,367,231
|
$
|
5,290,710
|