10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024.

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________.

COMMISSION FILE NUMBER 0-14703

NBT BANCORP INC.

(Exact name of registrant as specified in its charter)

Delaware	16-1268674
(State or other jurisdiction of incorporation or organization)	(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

None

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class	Trading Symbol(s)	Name of each 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: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As of April 30, 2024, there were 47,149,315 shares outstanding of the Registrant’s Common Stock, $0.01 par value per share.

NBT BANCORP INC.

FORM 10-Q - Quarter Ended March 31, 2024

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (Unaudited)
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Consolidated Statements of Comprehensive Income (Loss)	6
	Consolidated Statements of Changes in Stockholders’ Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Unaudited Interim Consolidated Financial Statements	10
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	40
ITEM 4.	CONTROLS AND PROCEDURES	40
PART II	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	41
ITEM 1A.	RISK FACTORS	41
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	41
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	41
ITEM 4.	MINE SAFETY DISCLOSURES	41
ITEM 5.	OTHER INFORMATION	41
ITEM 6.	EXHIBITS	41
SIGNATURES		42

2

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

When references to “NBT”, “we,” “our,” “us,” and “the Company” are made in this report, we mean NBT Bancorp Inc. and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, NBT Bancorp, Inc. When we refer to the “Bank” in this report, we mean its only bank subsidiary, NBT Bank, National Association, and its subsidiaries.

The acronyms and abbreviations identified below are used throughout this report, including the Notes to Unaudited Interim Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report.

AFS	available for sale
AIR	accrued interest receivable
AOCI	accumulated other comprehensive income (loss)
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BP(S)	basis point(s)
C&I	Commercial & Industrial
CECL	current expected credit losses
CD	certificate of deposit
CME	Chicago Mercantile Exchange Clearing House
CRE	Commercial Real Estate
EPS	earnings per share
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
FHLB	Federal Home Loan Bank
FOMC	Federal Open Market Committee
FRB	Federal Reserve Board
FTE	fully taxable equivalent
GAAP	generally accepted accounting principles in the United States of America
HTM	held to maturity
LGD	loss given default
LIBOR	London Interbank Offered Rate
MMDA	money market deposit accounts
NASDAQ	The NASDAQ Stock Market LLC
NIM	net interest margin
NOW	negotiable order of withdrawal
OCC	Office of the Comptroller of the Currency
OREO	other real estate owned
PCD	purchased credit deteriorated
PD	probability of default
Salisbury	Salisbury Bancorp, Inc.
Salisbury Bank	Salisbury Bank and Trust Company
SEC	U.S. Securities and Exchange Commission
SOFR	Secured Overnight Financing Rate
TDRs	troubled debt restructurings

3

ITEM 1. FINANCIAL STATEMENTS

NBT Bancorp Inc. and Subsidiaries

Consolidated Balance Sheets (unaudited)

	March 31,			December 31,
(In thousands, except share and per share data)	2024			2023
Assets
Cash and due from banks	$	162,460		$	173,811
Short-term interest-bearing accounts		156,632			31,378
Equity securities, at fair value		39,470			37,591
Securities available for sale, at fair value		1,418,471			1,430,858
Securities held to maturity (fair value $793,319 and $814,524, respectively)		890,863			905,267
Federal Reserve and Federal Home Loan Bank stock		37,336			45,861
Loans held for sale		3,263			3,371
Loans		9,688,077			9,650,713
Less allowance for loan losses		115,300			114,400
Net loans	$	9,572,777		$	9,536,313
Premises and equipment, net		80,239			80,675
Goodwill		361,851			361,851
Intangible assets, net		38,968			40,443
Bank owned life insurance		267,476			265,732
Other assets		409,393			395,889
Total assets	$	13,439,199		$	13,309,040
Liabilities
Demand (noninterest bearing)	$	3,359,789		$	3,413,829
Savings, NOW and money market		6,467,364			6,230,456
Time		1,368,136			1,324,709
Total deposits	$	11,195,289		$	10,968,994
Short-term borrowings		267,134			386,651
Long-term debt		29,759			29,796
Subordinated debt, net		120,101			119,744
Junior subordinated debt		101,196			101,196
Other liabilities		284,305			276,968
Total liabilities	$	11,997,784		$	11,883,349
Stockholders’ equity
Preferred stock, $0.01 par value. 2,500,000 shares authorized	$	-		$	-
Common stock, $0.01 par value. 100,000,000 shares authorized; 53,974,492 shares issued		540			540
Additional paid-in-capital		740,792			740,943
Retained earnings		1,040,563			1,021,831
Accumulated other comprehensive loss		(164,492	)		(160,934	)
Common stock in treasury, at cost, 6,819,477 and 6,864,593 shares, respectively		(175,988	)		(176,689	)
Total stockholders’ equity	$	1,441,415		$	1,425,691
Total liabilities and stockholders’ equity	$	13,439,199		$	13,309,040

See accompanying notes to unaudited interim consolidated financial statements.

4

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Income (unaudited)

	Three Months Ended March 31,
(In thousands, except per share data)	2024		2023
Interest, fee and dividend income
Interest and fees on loans	$	133,146	$	100,899
Securities available for sale		7,124		7,616
Securities held to maturity		5,303		5,035
Other		1,364		642
Total interest, fee and dividend income	$	146,937	$	114,192
Interest expense
Deposits	$	44,339	$	11,144
Short-term borrowings		3,421		4,919
Long-term debt		290		47
Subordinated debt		1,800		1,334
Junior subordinated debt		1,913		1,682
Total interest expense	$	51,763	$	19,126
Net interest income	$	95,174	$	95,066
Provision for loan losses		5,579		3,909
Net interest income after provision for loan losses	$	89,595	$	91,157
Noninterest income
Service charges on deposit accounts	$	4,117	$	3,548
Card services income		5,195		4,845
Retirement plan administration fees		14,287		11,462
Wealth management		9,697		8,087
Insurance services		4,388		3,931
Bank owned life insurance income		2,352		1,878
Net securities gains (losses)		2,183		(4,998	)
Other		3,173		2,656
Total noninterest income	$	45,392	$	31,409
Noninterest expense
Salaries and employee benefits	$	55,704	$	48,155
Technology and data services		9,750		9,007
Occupancy		8,098		7,220
Professional fees and outside services		4,853		4,178
Office supplies and postage		1,865		1,628
FDIC assessment		1,735		1,396
Advertising		812		649
Amortization of intangible assets		2,168		536
Loan collection and other real estate owned, net		553		855
Acquisition expenses		-		618
Other		6,235		5,080
Total noninterest expense	$	91,773	$	79,322
Income before income tax expense	$	43,214	$	43,244
Income tax expense		9,391		9,586
Net income	$	33,823	$	33,658
Earnings per share
Basic	$	0.72	$	0.78
Diluted	$	0.71	$	0.78

See accompanying notes to unaudited interim consolidated financial statements.

5

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (unaudited)

	Three Months Ended March 31,
(In thousands)	2024			2023
Net income	$	33,823		$	33,658
Other comprehensive income (loss), net of tax:
Securities available for sale:
Unrealized net holding (losses) gains arising during the period, gross	$	(5,292	)	$	15,725
Tax effect		1,323			(3,931	)
Unrealized net holding (losses) gains arising during the period, net	$	(3,969	)	$	11,794
Reclassification adjustment for net losses in net income, gross	$	-		$	5,000
Tax effect		-			(1,250	)
Reclassification adjustment for net losses in net income, net	$	-		$	3,750
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross	$	96		$	114
Tax effect		(24	)		(28	)
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net	$	72		$	86
Total securities available for sale, net	$	(3,897	)	$	15,630
Pension and other benefits:
Amortization of prior service cost and actuarial losses, gross	$	452		$	649
Tax effect		(113	)		(163	)
Amortization of prior service cost and actuarial losses, net	$	339		$	486
Total pension and other benefits, net	$	339		$	486
Total other comprehensive (loss) income	$	(3,558	)	$	16,116
Comprehensive income	$	30,265		$	49,774

See accompanying notes to unaudited interim consolidated financial statements.

6

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

(In thousands, except share and per share data)	Common Stock		Additional Paid-in- Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Common Stock in Treasury			Total
Balance at December 31, 2023	$	540	$	740,943		$	1,021,831		$	(160,934	)	$	(176,689	)	$	1,425,691
Net income		-		-			33,823			-			-			33,823
Cash dividends - $0.32 per share		-		-			(15,091	)		-			-			(15,091	)
Purchase of 1,900 treasury shares		-		-			-			-			(63	)		(63	)
Net issuance of 47,016 shares to employee and other stock plans		-		(2,435	)		-			-			764			(1,671	)
Stock-based compensation		-		2,284			-			-			-			2,284
Other comprehensive (loss)		-		-			-			(3,558	)		-			(3,558	)
Balance at March 31, 2024	$	540	$	740,792		$	1,040,563		$	(164,492	)	$	(175,988	)	$	1,441,415
Balance at December 31, 2022	$	497	$	577,853		$	958,433		$	(190,034	)	$	(173,195	)	$	1,173,554
Cumulative effect adjustment for ASU 2022-02 implementation as of January 1, 2023		-		-			502			-			-			502
Net income		-		-			33,658			-			-			33,658
Cash dividends - $0.30 per share		-		-			(12,871	)		-			-			(12,871	)
Net issuance of 46,509 shares to employee and other stock plans		-		(2,366	)		-			-			601			(1,765	)
Stock-based compensation		-		2,465			-			-			-			2,465
Other comprehensive income		-		-			-			16,116			-			16,116
Balance at March 31, 2023	$	497	$	577,952		$	979,722		$	(173,918	)	$	(172,594	)	$	1,211,659

See accompanying notes to unaudited interim consolidated financial statements.

7

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31,
(In thousands)	2024			2023
Operating activities
Net income	$	33,823		$	33,658
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses		5,579			3,909
Depreciation and amortization of premises and equipment		2,855			2,579
Net amortization on securities		657			690
Amortization of intangible assets		2,168			536
Amortization of operating lease right-of-use assets		1,867			1,647
Excess tax benefit on stock-based compensation		(116	)		(231	)
Stock-based compensation expense		2,284			2,465
Bank owned life insurance income		(2,352	)		(1,878	)
Amortization of subordinated debt issuance costs		109			109
Proceeds from sale of loans held for sale		27,075			1,571
Originations of loans held for sale		(26,662	)		(1,418	)
Net gain on sale of loans held for sale		(40	)		(16	)
Net securities (gains) losses		(2,183	)		4,998
Net change in other assets and other liabilities		(8,319	)		(26,772	)
Net cash provided by operating activities	$	36,745		$	21,847
Investing activities
Net cash used in acquisitions	$	(743	)	$	(129	)
Securities available for sale:
Proceeds from maturities, calls and principal paydowns		26,542			30,683
Proceeds from sales		2,284			-
Purchases		(19,676	)		-
Securities held to maturity:
Proceeds from maturities, calls and principal paydowns		21,143			17,870
Purchases		(7,071	)		(5,494	)
Equity securities:
Purchases		(7	)		-
Other:
Net increase in loans		(42,308	)		(118,242	)
Proceeds from Federal Home Loan Bank stock redemption		26,465			38,589
Purchases of Federal Home Loan Bank stock		(17,940	)		(39,218	)
Proceeds from settlement of bank owned life insurance		608			1,773
Purchases of premises and equipment, net		(2,425	)		(1,392	)
Net cash used in investing activities	$	(13,128	)	$	(75,560	)
Financing activities
Net increase in deposits	$	226,295		$	185,272
Net decrease in short-term borrowings		(119,517	)		(109,786	)
Proceeds from long-term debt		-			25,000
Repayments of long-term debt		(37	)		(25	)
Cash paid by employer for tax-withholding on stock issuance		(1,301	)		(1,432	)
Purchase of treasury stock		(63	)		-
Cash dividends		(15,091	)		(12,871	)
Net cash provided by financing activities	$	90,286		$	86,158
Net increase in cash and cash equivalents	$	113,903		$	32,445
Cash and cash equivalents at beginning of period		205,189			197,350
Cash and cash equivalents at end of period	$	319,092		$	229,795

8

NBT Bancorp Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited) (continued)

	Three Months Ended March 31,
	2024			2023
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest expense		$	55,313		$	17,066
Income taxes paid, net of refund			3,500			15,072
Acquisitions:
Fair value of assets acquired		$	693		$	150

See accompanying notes to unaudited interim consolidated financial statements.

9

NBT Bancorp Inc. and Subsidiaries

Notes to Unaudited Interim Consolidated Financial Statements

March 31, 2024

1. Description of Business

NBT Bancorp Inc. is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of NBT Bancorp Inc. consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The principal sources of revenue for NBT Bancorp Inc. are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as (the “Company”).

The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central and northwestern Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods in accordance with GAAP and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.

Estimates associated with the allowance for credit losses, pension accounting, provision for income taxes, fair values of financial instruments and status of contingencies are particularly susceptible to material change in the near term.

3. Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were redundant, duplicative, overlapping, outdated, or superseded. The new guidance is intended to align GAAP requirements with those of the SEC. The ASU will become effective on the earlier of the date on which the SEC removes its disclosure requirements for the related disclosure or June 30, 2027. Early adoption is not permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosure requirements by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, that addresses requests for improved income tax disclosures from investors, lenders, creditors and other allocators of capital that use the financial statements to make capital allocation decisions. The ASU requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better assess how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows. The ASU 2023-09 improves the transparency of income tax disclosures. The amendments in this ASU are effective for the Company on January 1, 2025 and should be applied on a prospective basis. Retrospective application and early adoption are permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

10

4. Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
U.S. treasury	$	133,442	$	-	$	(8,759	)	$	124,683
Federal agency		248,375		-		(35,071	)		213,304
State & municipal		96,054		1		(10,022	)		86,033
Mortgage-backed:
Government-sponsored enterprises		387,479		3		(45,461	)		342,021
U.S. government agency securities		71,036		10		(7,520	)		63,526
Collateralized mortgage obligations:
Government-sponsored enterprises		452,853		49		(50,135	)		402,767
U.S. government agency securities		170,293		-		(26,034	)		144,259
Corporate		48,451		-		(6,573	)		41,878
Total AFS securities	$	1,607,983	$	63	$	(189,575	)	$	1,418,471
As of December 31, 2023
U.S. treasury	$	133,302	$	-	$	(8,278	)	$	125,024
Federal agency		248,384		-		(33,644	)		214,740
State & municipal		96,251		11		(9,956	)		86,306
Mortgage-backed:
Government-sponsored enterprises		399,532		7		(44,264	)		355,275
U.S. government agency securities		74,281		14		(7,302	)		66,993
Collateralized mortgage obligations:
Government-sponsored enterprises		452,715		15		(48,257	)		404,473
U.S. government agency securities		162,171		-		(25,100	)		137,071
Corporate		48,442		-		(7,466	)		40,976
Total AFS securities	$	1,615,078	$	47	$	(184,267	)	$	1,430,858

There was no allowance for credit losses on AFS securities as of March 31, 2024 and December 31, 2023.

During the three months ended March 31, 2023, the Company incurred a $5.0 million loss on the write-off of an AFS corporate debt security from a subordinated debt investment of a financial institution that failed. The $5.0 million loss was reclassified out of AOCI and into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024 the Company sold the previously written-off security and recognized a gain of $2.3 million into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024, there were no gains or losses reclassified out of AOCI and into earnings.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
Federal agency	$	100,000	$	-	$	(18,440	)	$	81,560
Mortgage-backed:
Government-sponsored enterprises		224,344		-		(34,187	)		190,157
U.S. government agency securities		16,742		2		(736	)		16,008
Collateralized mortgage obligations:
Government-sponsored enterprises		182,813		-		(13,466	)		169,347
U.S. government agency securities		63,137		-		(11,206	)		51,931
State & municipal		303,827		99		(19,610	)		284,316
Total HTM securities	$	890,863	$	101	$	(97,645	)	$	793,319
As of December 31, 2023
Federal agency	$	100,000	$	-	$	(17,784	)	$	82,216
Mortgage-backed:
Government-sponsored enterprises		228,720		-		(31,613	)		197,107
U.S. government agency securities		17,086		3		(566	)		16,523
Collateralized mortgage obligations:
Government-sponsored enterprises		187,457		57		(12,021	)		175,493
U.S. government agency securities		63,878		-		(10,908	)		52,970
State & municipal		308,126		211		(18,122	)		290,215
Total HTM securities	$	905,267	$	271	$	(91,014	)	$	814,524

11

At March 31, 2024 and December 31, 2023, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities. 

The Company recorded no gains from calls on HTM securities for the three months ended March 31, 2024 and 2023.

AFS and HTM securities with amortized costs totaling $1.99 billion at March 31, 2024 and $2.03 billion at December 31, 2023 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2024 and December 31, 2023, AFS and HTM securities with an amortized cost of $159.3 million and $177.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table sets forth information with regard to gains and (losses) on equity securities:

	Three Months Ended March 31,
(In thousands)	2024				2023
Net (losses) and gains recognized on equity securities		$	(101	)		$	2
Less: Net (losses) and gains recognized on equity securities sold during the period			-				-
Unrealized (losses) and gains recognized on equity securities still held		$	(101	)		$	2

As of March 31, 2024 and December 31, 2023, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of March 31, 2024 and 2023. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three months ended March 31, 2024 and 2023.

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2024:

(In thousands)	Amortized Cost		Estimated Fair Value
AFS debt securities:
Within one year	$	50,294	$	49,553
From one to five years		567,513		508,211
From five to ten years		314,839		277,648
After ten years		675,337		583,059
Total AFS debt securities	$	1,607,983	$	1,418,471
HTM debt securities:
Within one year	$	98,660	$	98,460
From one to five years		125,141		119,411
From five to ten years		242,973		210,783
After ten years		424,089		364,665
Total HTM debt securities	$	890,863	$	793,319

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at March 31, 2024 and December 31, 2023.

12

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities had been in a continuous unrealized loss position:

	Less Than 12 Months							12 Months or Longer							Total
(In thousands)	Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions
As of March 31, 2024
AFS securities:
U.S. treasury	$	-	$	-			-	$	124,683	$	(8,759	)		8	$	124,683	$	(8,759	)		8
Federal agency		-		-			-		213,304		(35,071	)		16		213,304		(35,071	)		16
State & municipal		-		-			-		85,266		(10,022	)		66		85,266		(10,022	)		66
Mortgage-backed		136		(1	)		9		404,618		(52,980	)		158		404,754		(52,981	)		167
Collateralized mortgage obligations		11,033		(59	)		2		523,989		(76,110	)		120		535,022		(76,169	)		122
Corporate		1,459		(2	)		1		40,419		(6,571	)		14		41,878		(6,573	)		15
Total securities with unrealized losses	$	12,628	$	(62	)		12	$	1,392,279	$	(189,513	)		382	$	1,404,907	$	(189,575	)		394
HTM securities:
Federal agency	$	-	$	-			-	$	81,560	$	(18,440	)		4	$	81,560	$	(18,440	)		4
Mortgage-backed		11,905		(489	)		1		194,181		(34,434	)		33		206,086		(34,923	)		34
Collateralized mortgage obligation		8,189		(58	)		1		213,088		(24,614	)		52		221,277		(24,672	)		53
State & municipal		4,423		(13	)		4		181,355		(19,597	)		205		185,778		(19,610	)		209
Total securities with unrealized losses	$	24,517	$	(560	)		6	$	670,184	$	(97,085	)		294	$	694,701	$	(97,645	)		300
As of December 31, 2023
AFS securities:
U.S. treasury	$	-	$	-			-	$	125,024	$	(8,278	)		8	$	125,024	$	(8,278	)		8
Federal agency		-		-			-		214,740		(33,644	)		16		214,740		(33,644	)		16
State & municipal		-		-			-		85,528		(9,956	)		66		85,528		(9,956	)		66
Mortgage-backed		53		(1	)		7		421,259		(51,565	)		156		421,312		(51,566	)		163
Collateralized mortgage obligations		1,333		(6	)		2		536,678		(73,351	)		118		538,011		(73,357	)		120
Corporate		1,379		(75	)		1		39,597		(7,391	)		14		40,976		(7,466	)		15
Total securities with unrealized losses	$	2,765	$	(82	)		10	$	1,422,826	$	(184,185	)		378	$	1,425,591	$	(184,267	)		388
HTM securities:
Federal agency	$	-	$	-			-	$	82,216	$	(17,784	)		4	$	82,216	$	(17,784	)		4
Mortgage-backed		12,221		(365	)		1		201,320		(31,814	)		33		213,541		(32,179	)		34
Collateralized mortgage obligations		-		-			-		219,820		(22,929	)		54		219,820		(22,929	)		54
State & municipal		14,422		(127	)		21		171,904		(17,995	)		189		186,326		(18,122	)		210
Total securities with unrealized losses	$	26,643	$	(492	)		22	$	675,260	$	(90,522	)		280	$	701,903	$	(91,014	)		302

The Company does not believe the AFS securities that were in an unrealized loss position as of March 31, 2024 and December 31, 2023, which consisted of 394 and 388 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of March 31, 2024 and December 31, 2023, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude AIR from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $3.9 million at March 31, 2024 and December 31, 2023, and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

13

None of the Bank’s HTM debt securities were past due or on nonaccrual status as of March 31, 2024 and December 31, 2023. There was no accrued interest reversed against interest income for the three months ended March 31, 2024 or the year ended December 31, 2023 as all securities remained in accrual status. In addition, there were no collateral-dependent HTM debt securities as of March 31, 2024 and December 31, 2023. There was no allowance for credit losses on HTM securities as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, 66% of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2024 and December 31, 2023. The remaining HTM debt securities at March 31, 2024 and December 31, 2023 were comprised of state and municipal obligations generally with bond ratings of A to AAA. Utilizing the CECL methodology, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of March 31, 2024 and December 31, 2023. AIR on HTM debt securities totaled $5.1 million at March 31, 2024 and $4.7 million at December 31, 2023 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

5. Loans

A summary of loans, net of deferred fees and origination costs, by category is as follows:

(In thousands)	March 31, 2024		December 31, 2023
Commercial & industrial	$	1,353,446	$	1,354,248
Commercial real estate		3,646,739		3,626,910
Residential real estate		2,133,289		2,125,804
Home equity		328,673		337,214
Indirect auto		1,190,734		1,130,132
Residential solar		896,147		917,755
Other consumer		139,049		158,650
Total loans	$	9,688,077	$	9,650,713

Included in the above loans are net deferred loan origination (fees) costs totaling $89.2 million and $98.2 million at March 31, 2024 and December 31, 2023, respectively.

6. Allowance for Credit Losses and Credit Quality of Loans

The allowance for credit losses totaled $115.3 million at March 31, 2024, compared to $114.4 million at December 31, 2023. The allowance for credit losses as a percentage of loans was 1.19% at March 31, 2024 and December 31, 2023.

The Company’s January 1, 2023 adoption of ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures resulted in an insignificant change to its methodology for estimating the allowance for credit losses on TDRs. The ASU eliminated the guidance on TDRs and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The decrease in allowance for credit loss on TDR loans relating to adoption of ASU 2022-02 was $0.6 million.

The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside and downside economic forecast in measuring the allowance.

The quantitative model as of March 31, 2024 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At March 31, 2024, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflects an economic environment where the unemployment rate increases slightly from 3.8% to 4.1% during the forecast period. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the second quarter of 2024 at approximately 3.3% and decrease to 2.8% before increasing to 3.4% by the end of the forecast period. Key assumptions in the baseline economic outlook included the Federal Reserve cutting rates with three 25 basis point cuts at the June, September, and December meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, national unemployment rises from 3.8% in the first quarter of 2024 to a peak of 7.7% in the second quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2024. Additional adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation, and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth, and policy exceptions was also conducted.

14

The quantitative model as of December 31, 2023 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At December 31, 2023, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflected an unemployment rate environment starting at 3.8% and increasing slightly during the forecast period to 4.1%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the first quarter of 2024 at approximately 3.7% before decreasing to a low of 2.9% in the third quarter of 2024 and then increasing to 3.8% by the end of the forecast period. Other utilized economic variable forecasts are mixed compared to the prior year, with retail sales improving, business output mixed and housing starts down. Key assumptions in the baseline economic outlook included currently being in a full employment economy, continued tapering of the Federal Reserve balance sheet and the FOMC beginning to cut rates in the second quarter of 2024. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, northeast unemployment increases to a peak of 7.0% in the first quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of December 31, 2023. Additional qualitative adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth and policy exceptions was also conducted.

There were no loans purchased with credit deterioration during the three months ended March 31, 2024. There were $219.5 million of PCD loans acquired from Salisbury during the year ended December 31, 2023, which resulted in an allowance for credit losses at acquisition of $5.8 million. During the three months ended March 31, 2024, the Company purchased $0.4 million of residential loans at a 7.0% premium with a $4 thousand allowance for credit losses recorded for these loans. During 2023, the Company purchased $3.8 million of residential loans at a 7.0% premium with a $31 thousand allowance for credit losses recorded for these loans.

The Company made a policy election to report AIR in the other assets line item on the consolidated balance sheets. AIR on loans totaled $34.4 million at March 31, 2024 and $34.1 million at December 31, 2023 and there was no estimated allowance for credit losses related to AIR as of March 31, 2024 and December 31, 2023 as it is excluded from amortized cost.

The following tables present the activity in the allowance for credit losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential			Total
Balance as of December 31, 2023	$	45,903		$	46,427		$	22,070		$	114,400
Charge-offs		(985	)		(5,581	)		(114	)		(6,680	)
Recoveries		198			1,651			152			2,001
Provision		(644	)		4,922			1,301			5,579
Ending balance as of March 31, 2024	$	44,472		$	47,419		$	23,409		$	115,300
Balance as of January 1, 2023 (after adoption of ASC 2022-02)	$	34,662		$	50,951		$	14,539		$	100,152
Charge-offs		(169	)		(5,342	)		(339	)		(5,850	)
Recoveries		541			1,377			121			2,039
Provision		1,006			1,834			1,069			3,909
Ending balance as of March 31, 2023	$	36,040		$	48,820		$	15,390		$	100,250

The allowance for credit losses as of March 31, 2024 increased compared to the allowance estimates as of December 31, 2023 primarily due to the slowing of prepayment speed assumptions partly offset by the decline in consumer loans with higher allowance levels and a decline in the PCD allowance as purchased loan balances decreased. The increase in the allowance for credit losses from March 31, 2023 to March 31, 2024 was primarily due to the recording of $14.5 million of allowance for acquired Salisbury loans as of the acquisition date, which included both the $8.8 million of non-PCD allowance recognized through the provision for loan losses and the $5.8 million of PCD allowance reclassified from loans.

Individually Evaluated Loans

The threshold for evaluating classified, commercial and commercial real estate loans risk graded substandard or doubtful, and nonperforming loans specifically evaluated for individual credit loss is $1.0 million. As of March 31, 2024, there were two relationships identified to be evaluated for loss on an individual basis which had an amortized cost basis of $17.1 million, with no allowance for credit loss. As of December 31, 2023, the same two relationships were identified to be evaluated for loss on an individual basis which had an amortized cost basis of $17.3 million, with no allowance for credit loss. The decrease in the amortized cost basis on an individual basis from December 31, 2023 to March 31, 2024 was primarily due to principal payments received during the first quarter of 2024. As of March 31, 2024 and December 31, 2023, there were $17.1 million and $17.3 million, respectively, of loans in nonaccrual that were specifically evaluated for individual expected credit loss without an allowance for credit losses.

15

The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of March 31, 2024
Commercial loans:
C&I	$	1,711	$	750	$	-	$	2,461	$	3,079	$	1,398,831	$	1,404,371
CRE		1,929		64		-		1,993		18,743		3,424,810		3,445,546
Total commercial loans	$	3,640	$	814	$	-	$	4,454	$	21,822	$	4,823,641	$	4,849,917
Consumer loans:
Auto	$	10,376	$	1,676	$	1,045	$	13,097	$	2,274	$	1,142,702	$	1,158,073
Residential solar		3,940		1,362		446		5,748		125		890,274		896,147
Other consumer		2,054		1,158		882		4,094		299		146,372		150,765
Total consumer loans	$	16,370	$	4,196	$	2,373	$	22,939	$	2,698	$	2,179,348	$	2,204,985
Residential	$	3,799	$	858	$	227	$	4,884	$	10,669	$	2,617,622	$	2,633,175
Total loans	$	23,809	$	5,868	$	2,600	$	32,277	$	35,189	$	9,620,611	$	9,688,077

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2023
Commercial loans:
C&I	$	414	$	33	$	1	$	448	$	3,441	$	1,393,616	$	1,397,505
CRE		803		835		-		1,638		18,126		3,413,984		3,433,748
Total commercial loans	$	1,217	$	868	$	1	$	2,086	$	21,567	$	4,807,600	$	4,831,253
Consumer loans:
Auto	$	10,115	$	2,011	$	1,067	$	13,193	$	2,106	$	1,084,143	$	1,099,442
Residential solar		3,074		1,301		915		5,290		245		912,220		917,755
Other consumer		2,343		1,811		1,124		5,278		215		164,867		170,360
Total consumer loans	$	15,532	$	5,123	$	3,106	$	23,761	$	2,566	$	2,161,230	$	2,187,557
Residential	$	3,836	$	399	$	554	$	4,789	$	10,080	$	2,617,034	$	2,631,903
Total loans	$	20,585	$	6,390	$	3,661	$	30,636	$	34,213	$	9,585,864	$	9,650,713

Credit Quality Indicators

The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans.

Commercial Grading System

For C&I and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass.

16

Doubtful

A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.

Substandard

Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.

Special Mention

Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.

Pass

Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including Paycheck Protection Program loans.

Consumer and Residential Grading System

Consumer and Residential loans are graded as either Nonperforming or Performing.

Nonperforming

Nonperforming loans are loans that are (1) over 90 days past due and interest is still accruing or (2) on nonaccrual status.

Performing

All loans not meeting any of the above criteria are considered Performing.

17

The following tables illustrate the Company’s credit quality by loan class by vintage and includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the three months ended March 31, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations. Included in other consumer gross charge-offs for the year ended December 31, 2023, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.8 million in overdrawn deposit accounts reported as 2023 originations.

(In thousands)	2024		2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
C&I
By internally assigned grade:
Pass	$	60,820	$	214,985		$	243,619		$	231,577		$	146,409		$	129,310		$	318,078	$	2,585	$	1,347,383
Special mention		-		1,795			2,802			378			3,845			1,812			15,946		251		26,829
Substandard		-		2,934			3,154			1,885			289			6,845			14,880		127		30,114
Doubtful		-		21			1			19			-			4			-		-		45
Total C&I	$	60,820	$	219,735		$	249,576		$	233,859		$	150,543		$	137,971		$	348,904	$	2,963	$	1,404,371
Current-period gross charge-offs	$	-	$	(9	)	$	(900	)	$	-		$	-		$	(76	)	$	-	$	-	$	(985	)
CRE
By internally assigned grade:
Pass	$	81,048	$	362,660		$	492,661		$	546,787		$	449,533		$	1,013,118		$	308,977	$	37,243	$	3,292,027
Special mention		-		3,602			5,971			7,842			3,875			28,841			3,547		-		53,678
Substandard		-		-			726			17,961			1,132			61,499			1,542		16,981		99,841
Total CRE	$	81,048	$	366,262		$	499,358		$	572,590		$	454,540		$	1,103,458		$	314,066	$	54,224	$	3,445,546
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	-		$	-	$	-	$	-
Auto
By payment activity:
Performing	$	175,451	$	430,001		$	331,202		$	138,915		$	36,140		$	43,045		$	-	$	-	$	1,154,754
Nonperforming		29		1,014			1,171			724			94			287			-		-		3,319
Total auto	$	175,480	$	431,015		$	332,373		$	139,639		$	36,234		$	43,332		$	-	$	-	$	1,158,073
Current-period gross charge-offs	$	-	$	(274	)	$	(493	)	$	(226	)	$	(12	)	$	(122	)	$	-	$	-	$	(1,127	)
Residential solar
By payment activity:
Performing	$	1,365	$	149,789		$	422,422		$	176,158		$	63,222		$	82,620		$	-	$	-	$	895,576
Nonperforming		-		-			432			76			-			63			-		-		571
Total residential solar	$	1,365	$	149,789		$	422,854		$	176,234		$	63,222		$	82,683		$	-	$	-	$	896,147
Current-period gross charge-offs	$	-	$	(53	)	$	(910	)	$	(136	)	$	-		$	(196	)	$	-	$	-	$	(1,295	)
Other consumer
By payment activity:
Performing	$	5,600	$	10,559		$	22,720		$	47,947		$	18,029		$	25,681		$	19,015	$	33	$	149,584
Nonperforming		-		5			184			650			39			295			1		7		1,181
Total other consumer	$	5,600	$	10,564		$	22,904		$	48,597		$	18,068		$	25,976		$	19,016	$	40	$	150,765
Current-period gross charge-offs	$	-	$	(250	)	$	(811	)	$	(1,453	)	$	(364	)	$	(281	)	$	-	$	-	$	(3,159	)
Residential
By payment activity:
Performing	$	39,693	$	258,154		$	336,357		$	438,007		$	273,451		$	1,006,816		$	255,582	$	14,219	$	2,622,279
Nonperforming		-		626			825			1,605			272			7,568			-		-		10,896
Total residential	$	39,693	$	258,780		$	337,182		$	439,612		$	273,723		$	1,014,384		$	255,582	$	14,219	$	2,633,175
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	(114	)	$	-	$	-	$	(114	)
Total loans	$	364,006	$	1,436,145		$	1,864,247		$	1,610,531		$	996,330		$	2,407,804		$	937,568	$	71,446	$	9,688,077
Current-period gross charge-offs	$	-	$	(586	)	$	(3,114	)	$	(1,815	)	$	(376	)	$	(789	)	$	-	$	-	$	(6,680	)

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(In thousands)	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2023
C&I
By internally assigned grade:
Pass	$	229,249		$	270,796		$	241,993		$	158,051		$	74,469		$	63,826		$	299,248	$	2,923	$	1,340,555
Special mention		420			1,672			277			3,524			87			1,854			19,489		-		27,323
Substandard		1,496			2,461			1,609			282			2,266			5,632			14,266		1,607		29,619
Doubtful		-			1			2			-			4			1			-		-		8
Total C&I	$	231,165		$	274,930		$	243,881		$	161,857		$	76,826		$	71,313		$	333,003	$	4,530	$	1,397,505
Current-period gross charge-offs	$	(24	)	$	(3,021	)	$	(5	)	$	(86	)	$	-		$	(600	)	$	-	$	-	$	(3,736	)
CRE
By internally assigned grade:
Pass	$	353,161		$	518,201		$	561,897		$	452,110		$	327,804		$	739,189		$	294,039	$	33,705	$	3,280,106
Special mention		3,577			4,472			10,711			7,055			9,967			39,460			2,970		-		78,212
Substandard		370			731			21,807			1,146			2,996			37,418			10,962		-		75,430
Total CRE	$	357,108		$	523,404		$	594,415		$	460,311		$	340,767		$	816,067		$	307,971	$	33,705	$	3,433,748
Current-period gross charge-offs	$	-		$	-		$	-		$	-		$	(114	)	$	(304	)	$	-	$	-	$	(418	)
Auto
By payment activity:
Performing	$	474,369		$	363,516		$	157,251		$	42,644		$	45,406		$	13,071		$	12	$	-	$	1,096,269
Nonperforming		532			1,241			830			190			306			74			-		-		3,173
Total auto	$	474,901		$	364,757		$	158,081		$	42,834		$	45,712		$	13,145		$	12	$	-	$	1,099,442
Current-period gross charge-offs	$	(102	)	$	(1,183	)	$	(1,066	)	$	(340	)	$	(301	)	$	(295	)	$	-	$	-	$	(3,287	)
Residential solar
By payment activity:
Performing	$	155,425		$	430,855		$	178,839		$	65,382		$	46,554		$	39,540		$	-	$	-	$	916,595
Nonperforming		-			837			205			18			47			53			-		-		1,160
Total residential solar	$	155,425		$	431,692		$	179,044		$	65,400		$	46,601		$	39,593		$	-	$	-	$	917,755
Current-period gross charge-offs	$	(150	)	$	(1,930	)	$	(923	)	$	(45	)	$	(558	)	$	(345	)	$	-	$	-	$	(3,951	)
Other consumer
By payment activity:
Performing	$	13,089		$	27,394		$	57,876		$	21,087		$	14,548		$	15,964		$	19,042	$	21	$	169,021
Nonperforming		-			244			685			144			56			161			4		45		1,339
Total other consumer	$	13,089		$	27,638		$	58,561		$	21,231		$	14,604		$	16,125		$	19,046	$	66	$	170,360
Current-period gross charge-offs	$	(885	)	$	(3,744	)	$	(7,511	)	$	(1,329	)	$	(832	)	$	(568	)	$	-	$	-	$	(14,869	)
Residential
By payment activity:
Performing	$	212,799		$	366,860		$	453,206		$	267,845		$	167,860		$	876,563		$	260,836	$	15,300	$	2,621,269
Nonperforming		134			430			1,121			385			591			7,460			-		513		10,634
Total residential	$	212,933		$	367,290		$	454,327		$	268,230		$	168,451		$	884,023		$	260,836	$	15,813	$	2,631,903
Current-period gross charge-offs	$	-		$	-		$	(81	)	$	(30	)	$	-		$	(406	)	$	-	$	-	$	(517	)
Total loans	$	1,444,621		$	1,989,711		$	1,688,309		$	1,019,863		$	692,961		$	1,840,266		$	920,868	$	54,114	$	9,650,713
Current-period gross charge-offs	$	(1,161	)	$	(9,878	)	$	(9,586	)	$	(1,830	)	$	(1,805	)	$	(2,518	)	$	-	$	-	$	(26,778	)

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The allowance for losses on unfunded commitments totaled $4.7 million as March 31, 2024, compared to $5.1 million as of December 31, 2023.

Loan Modifications to Borrowers Experiencing Financial Difficulties

When the Company modifies a loan with financial difficulty, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a change in scheduled payment amount; or principal forgiveness.

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The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

	Three Months Ended March 31, 2024
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	294		0.011	%
Total	$	294

	Three Months Ended March 31, 2023
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	43		0.002	%
Total	$	43

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

	Three Months Ended March 31, 2024
Loan Type	Term Extension
Residential	Added a weighted-average 7.4 years to the life of loans, which reduced monthly payment amounts for the borrowers.

	Three Months Ended March 31, 2023
Loan Type	Term Extension
Residential	Added a weighted-average 18 years to the life of loans, which reduced monthly payment amounts for the borrowers.

There were no financing receivables that had a payment default during the three months ended March 31, 2024 and 2023, that were modified to borrowers experiencing financial difficulty that were modified in the twelve months prior to that default.

The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months:

	Payment Status (Amortized Cost Basis)
(In thousands)	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due
As of March 31, 2024
Loan Type
Residential	$	863	$	-	$	-	$	29
Total	$	863	$	-	$	-	$	29

7. Short-Term Borrowings

In addition to the liquidity provided by balance sheet cash flows, liquidity must also be supplemented with additional sources such as credit lines from correspondent banks as well as borrowings from the FHLB and the Federal Reserve Bank. Other funding alternatives may also be appropriate from time to time, including wholesale and retail repurchase agreements and brokered CD accounts.

Information related to short-term borrowings is summarized as follows:

(In thousands)	March 31, 2024		December 31, 2023
Federal funds purchased	$	78,000	$	-
Securities sold under repurchase agreements		86,134		93,651
Other short-term borrowings		103,000		293,000
Total short-term borrowings	$	267,134	$	386,651

See Note 4 for additional information regarding securities pledged as collateral for securities sold under the repurchase agreements.

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8. Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at March 31, 2024. Benefits paid from the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks, bonds and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. These post-retirement benefits are referred to herein as “Other Benefits.”

Accounting standards require an employer to: (1) recognize the overfunded or underfunded status of defined benefit post-retirement plans, which is measured as the difference between plan assets at fair value and the benefit obligation, as an asset or liability in its balance sheet; (2) recognize changes in that funded status in the year in which the changes occur through comprehensive income; and (3) measure the defined benefit plan assets and obligations as of the date of its year-end balance sheet.

The Company made no voluntary contributions to the Pension Benefits and Other Benefits plans during the three months ended March 31, 2024 and 2023.

The components of expense for Pension Benefits and Other Benefits are set forth below:

	Pension Benefits						Other Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	2024			2023			2024			2023
Components of net periodic (benefit) cost:
Service cost	$	514		$	482		$	1		$	1
Interest cost		1,005			1,010			55			56
Expected return on plan assets		(1,983	)		(1,853	)		-			-
Net amortization		453			670			(1	)		(21	)
Total net periodic (benefit) cost	$	(11	)	$	309		$	55		$	36

The service cost component of net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.

9. Earnings Per Share

Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).

The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:

	Three Months Ended March 31,
(In thousands, except per share data)	2024		2023
Basic EPS:
Weighted average common shares outstanding		47,148		42,894
Net income available to common stockholders	$	33,823	$	33,658
Basic EPS	$	0.72	$	0.78
Diluted EPS:
Weighted average common shares outstanding		47,148		42,894
Dilutive effect of common stock options and restricted stock		222		232
Weighted average common shares and common share equivalents		47,370		43,126
Net income available to common stockholders	$	33,823	$	33,658
Diluted EPS	$	0.71	$	0.78

There was a nominal number of weighted average stock options outstanding for the three months ended March 31, 2024 and March 31, 2023, that were not considered in the calculation of diluted EPS since the stock options’ exercise prices were greater than the average market price during these periods.

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10. Reclassification Adjustments Out of Other Comprehensive Income (Loss)

The following table summarizes the reclassification adjustments out of AOCI:

Detail About AOCI Components	Amount Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended
(In thousands)	March 31, 2024			March 31, 2023
AFS securities:
Losses on AFS securities	$	-		$	5,000		Net securities (gains) losses
Amortization of unrealized gains related to securities transfer		96			114		Interest income
Tax effect	$	(24	)	$	(1,278	)	Income tax (benefit)
Net of tax	$	72		$	3,836
Pension and other benefits:
Amortization of net losses	$	454		$	640		Other noninterest expense
Amortization of prior service costs		(2	)		9		Other noninterest expense
Tax effect	$	(113	)	$	(163	)	Income tax (benefit)
Net of tax	$	339		$	486
Total reclassifications, net of tax	$	411		$	4,322

11. Derivative Instruments and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Generally, the Company may use derivative financial instruments to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments. Currently, the Company has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps are considered derivatives, but are not designated in hedging relationships. These instruments have interest rate and credit risk associated with them. To mitigate the interest rate risk, the Company enters into offsetting interest rate swaps with counterparties. The counterparty swaps are also considered derivatives and are also not designated in hedging relationships. Interest rate swaps are recorded within other assets or other liabilities on the consolidated balance sheets at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statements of income.

The Company is subject to over-the-counter derivative clearing requirements, which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the CME. The CME requires the Company to post initial and variation margin payments to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts. A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company’s financial statements are not equal and offsetting.

In 2017, the U.K. Financial Conduct Authority announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021. In 2022, the Federal Reserve adopted a final rule implementing the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that replaced LIBOR in certain financial contracts after June 30, 2023. In 2023, the Company transitioned all of its financial instruments to an alternative benchmark rate.

As of March 31, 2024 and December 31, 2023, the Company had thirteen and twelve risk participation agreements, respectively, with financial institution counterparties for interest rate swaps related to participated loans. Risk participation agreements provide credit protection to the financial institution that originated the swap transaction should the borrower fail to perform on its obligation. The Company enters into both risk participation agreements in which it purchases credit protection from other financial institutions and those in which it provides credit protection to other financial institutions.

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The following table summarizes the derivatives outstanding:

(In thousands)	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
As of March 31, 2024
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,330,997	Other assets	$	114,205	$	1,330,997	Other liabilities	$	114,101
Risk participation agreements		71,511	Other assets		84		15,571	Other liabilities		3
Total derivatives not designated as hedging instruments				$	114,289				$	114,104
Netting adjustments(1)					24,321					-
Net derivatives in the balance sheet				$	89,968				$	114,104
Derivatives not offset on the balance sheet				$	1,924				$	1,924
Cash collateral(2)					-					-
Net derivative amounts				$	88,044				$	112,180
As of December 31, 2023
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,303,711	Other assets	$	95,972	$	1,303,711	Other liabilities	$	95,869
Risk participation agreements		62,112	Other assets		19		16,146	Other liabilities		6
Total derivatives not designated as hedging instruments				$	95,991				$	95,875
Netting adjustments(1)					20,849					-
Net derivatives in the balance sheet				$	75,142				$	95,875
Derivatives not offset on the balance sheet				$	2,930				$	2,930
Cash collateral(2)					-					-
Net derivative amounts				$	72,212				$	92,945

(1) Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

(2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:

	Three Months Ended March 31,
(In thousands)	2024		2023
Derivatives not designated as hedging instruments:
Increase in other income	$	75	$	7

12. Fair Value Measurements and Fair Value of Financial Instruments

GAAP states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

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A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such instruments.

The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or quote from alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used by its third-party providers in pricing the securities.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in financial ratios or cash flows.

The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

(In thousands)	Level 1		Level 2		Level 3		March 31, 2024
Assets:
AFS securities:
U.S. treasury	$	124,683	$	-	$	-	$	124,683
Federal agency		-		213,304		-		213,304
State & municipal		-		86,033		-		86,033
Mortgage-backed		-		405,547		-		405,547
Collateralized mortgage obligations		-		547,026		-		547,026
Corporate		-		41,878		-		41,878
Total AFS securities	$	124,683	$	1,293,788	$	-	$	1,418,471
Equity securities		38,470		1,000		-		39,470
Derivatives		-		89,968		-		89,968
Total	$	163,153	$	1,384,756	$	-	$	1,547,909
Liabilities:
Derivatives	$	-	$	114,104	$	-	$	114,104
Total	$	-	$	114,104	$	-	$	114,104

(In thousands)	Level 1		Level 2		Level 3		December 31, 2023
Assets:
AFS securities:
U.S. treasury	$	125,024	$	-	$	-	$	125,024
Federal agency		-		214,740		-		214,740
State & municipal		-		86,306		-		86,306
Mortgage-backed		-		422,268		-		422,268
Collateralized mortgage obligations		-		541,544		-		541,544
Corporate		-		40,976		-		40,976
Total AFS securities	$	125,024	$	1,305,834	$	-	$	1,430,858
Equity securities		36,591		1,000		-		37,591
Derivatives		-		75,142		-		75,142
Total	$	161,615	$	1,381,976	$	-	$	1,543,591
Liabilities:
Derivatives	$	-	$	95,875	$	-	$	95,875
Total	$	-	$	95,875	$	-	$	95,875

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GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other real estate owned, collateral-dependent loans individually evaluated for expected credit losses and HTM securities. There were no loans individually evaluated for expected credit losses where the amortized cost was adjusted to fair value as of March 31, 2024 and December 31, 2023, respectively. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.

The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings, accrued interest payable and derivatives.

			March 31, 2024				December 31, 2023
(In thousands)	Fair Value Hierarchy		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
HTM securities		2	$	890,863	$	793,319	$	905,267	$	814,524
Net loans		3		9,576,040		9,173,300		9,539,684		9,216,162
Financial liabilities:
Time deposits		2	$	1,368,136	$	1,348,934	$	1,324,709	$	1,285,999
Long-term debt		2		29,759		29,315		29,796		29,416
Subordinated debt		1		120,628		116,563		120,380		113,757
Junior subordinated debt		2		101,196		103,202		101,196		102,337

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.

HTM Securities

The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

Net Loans

Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments, and those expected future cash flows also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance with ASC 820.

25

Time Deposits

The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Long-Term Debt

The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.

Subordinated Debt

The fair value of subordinated debt has been measured using the observable market price as of the period reported.

Junior Subordinated Debt

The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.

13. Commitments and Contingencies

The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused lines of credit, standby letters of credit and certain agricultural real estate loans sold to investors with recourse, with the sold portion having a government guarantee that is assignable back to the Company upon repurchase of the loan in the event of default. The Company’s exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, unused lines of credit, standby letters of credit and loans sold with recourse is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness. Commitments to extend credit and unused lines of credit totaled $2.73 billion at March 31, 2024 and $2.25 billion at December 31, 2023.

Since many loan commitments, standby letters of credit and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. The Company does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit.

The Company guarantees the obligations or performance of customers by issuing standby letters of credit to third-parties. These standby letters of credit are generally issued in support of third-party debt, such as corporate debt issuances, industrial revenue bonds and municipal securities. The risk involved in issuing standby letters of credit is essentially the same as the credit risk involved in extending loan facilities to customers and letters of credit are subject to the same credit origination, portfolio maintenance and management procedures in effect to monitor other credit and off-balance sheet products. Typically, these instruments have one year expirations with an option to renew upon annual review; therefore, the total amounts do not necessarily represent future cash requirements. Standby letters of credit totaled $42.0 million at March 31, 2024 and $44.7 million at December 31, 2023. As of March 31, 2024 and December 31, 2023, the fair value of the Company’s standby letters of credit was not significant.

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NBT BANCORP INC. AND SUBSIDIARIES

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The purpose of this discussion and analysis is to provide a concise description of the consolidated financial condition and results of operations of NBT Bancorp Inc. (“NBT”) and its wholly-owned subsidiaries, including NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”) and NBT Holdings, Inc. (“NBT Holdings”) (collectively referred to herein as the “Company”). This discussion will focus on results of operations, financial condition, capital resources and asset/liability management. Reference should be made to the Company’s consolidated financial statements and footnotes thereto included in this Form 10‑Q as well as to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023 for an understanding of the following discussion and analysis. Operating results for the three month period ending March 31, 2024 are not necessarily indicative of the results of the full year ending December 31, 2024 or any future period.

Forward-Looking Statements

Certain statements in this filing and future filings by the Company with the SEC, in the Company’s press releases or other public or stockholder communications or in oral statements made with the approval of an authorized executive officer, contain 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 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 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (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 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; and (20) the Company’s success at managing the risks involved in the foregoing items.

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 Quarterly Report on Form 10-Q contains financial information determined by methods other than in accordance with GAAP. Where non-GAAP disclosures are used in this Form 10-Q, 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.

Critical Accounting Estimates

SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant. The Company follows financial accounting and reporting policies that are in accordance with GAAP. The more significant of these policies are summarized in Note 1 to the consolidated financial statements presented in our 2023 Annual Report on Form 10-K. Refer to Note 3 to the unaudited interim consolidated financial statements in this Quarterly Report on Form 10-Q for recently adopted accounting standards. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses and the allowance for unfunded commitments policies are deemed to meet the SEC’s definition of a critical accounting estimate.

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Allowance for Credit Losses and Unfunded Commitments

The allowance for credit losses consists of the allowance for credit losses and the allowance for losses on unfunded commitments. The measurement of CECL on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. The allowance for credit losses for loans, as reported in our consolidated statements of financial condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan amounts, net of recoveries. The allowance for losses on unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for losses on unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws.

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolio. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. The impact of utilizing the CECL approach to calculate the reserve for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the reserve for credit losses, and therefore, greater volatility to our reported earnings.

One of the most significant judgments involved in estimating the Company’s allowance for credit losses relates to the macroeconomic forecasts used to estimate expected credit losses over the forecast period. As of March 31, 2024, the quantitative model incorporates a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At March 31, 2024, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflects an economic environment where the unemployment rate increases slightly from 3.8% to 4.1% during the forecast period. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the second quarter of 2024 at approximately 3.3% and decrease to 2.8% before increasing to 3.4% by the end of the forecast period. Key assumptions in the baseline economic outlook included the Federal Reserve cutting rates with three 25 basis point cuts at the June, September, and December meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, national unemployment rises from 3.8% in the first quarter of 2024 to a peak of 7.7% in the second quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2024. All else held equal, the changes in the weightings of our forecasted scenarios would impact the amount of estimated allowance for credit losses through changes in the quantitative reserve and scenario-specific qualitative adjustments. To demonstrate the sensitivity of the allowance for credit losses estimate to macroeconomic forecast weightings assumptions as of March 31, 2024, the Company attributed the change in scenario weightings to the change in the allowance for credit losses, with a 10% decrease to the downside scenario and a 10% increase to the baseline scenario causing a 3% decrease in the overall estimated allowance for credit losses. To further demonstrate the sensitivity of the allowance for credit losses estimate to macroeconomic forecast weightings assumptions as of March 31, 2024, the Company increased the downside scenario to 100% which resulted in a 23% increase in the overall estimated allowance for credit losses.

The Company’s policies on the CECL methodology for allowance for credit losses are disclosed in Note 1 to the consolidated financial statements presented in our 2023 Annual Report on Form 10-K. All accounting policies are important and as such, the Company encourages the reader to review each of the policies included in Note 1 to the consolidated financial statements presented in our 2023 Annual Report on Form 10-K to obtain a better understanding of how the Company’s financial performance is reported. Refer to Note 3 to the unaudited interim consolidated financial statements in this Quarterly Report on Form 10-Q for recently adopted accounting standards.

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Overview

Significant factors management reviews to evaluate the Company’s operating results and financial condition include, but are not limited to: net income and EPS, return on average assets and equity, NIM, noninterest income, operating expenses, asset quality indicators, loan and deposit growth, capital management, liquidity and interest rate sensitivity, enhancements to customer products and services, technology advancements, market share and peer comparisons. The following information should be considered in connection with the Company’s results for the three months ended March 31, 2024:

● Net income for the three months ended March 31, 2024 was $33.8 million, comparable to the first quarter of 2023 and up $3.4 million from the fourth quarter of 2023.

● Diluted earnings per share were $0.71 for the three months ended March 31, 2024, down $0.07 from the first quarter of 2023 and up $0.07 from the fourth quarter of 2023.

● Operating net income⁽¹⁾, a non-GAAP measure, which excludes acquisition expenses, securities gains (losses) and an impairment of a minority interest equity investment, net of tax, was $32.1 million, or $0.68 per diluted common share, for the three months ended March 31, 2024, compared to $0.88 for the first quarter of 2023 and $0.72 for the fourth quarter of 2023.

● Excluding securities gains (losses), noninterest income represented 31% of total revenues and was $43.2 million for the three months ended March 31, 2024, up $5.2 million, or 13.8%, from the fourth quarter of 2023 and up $6.8 million, or 18.7%, from the first quarter of 2023.

● Period end total loans were $9.69 billion, up $37.4 million, or 1.6%, annualized, from December 31, 2023.

● Credit quality metrics including net charge-offs to average loans were 0.19%, annualized, and allowance for loan losses to total loans was 1.19%.

● Period end total deposits were $11.20 billion, up $226.3 million, or 2.1%, from December 31, 2023.

● Book value per share was $30.57 at March 31, 2024; tangible book value per share⁽¹⁾ was $22.07 at March 31, 2024, $21.72 at December 31, 2023 and $21.52 at March 31, 2023.

(1) Non-GAAP measure - Refer to non-GAAP reconciliation below.

Results of Operations

Net income for the three months ended March 31, 2024 was $33.8 million, or $0.71 per diluted common share, up $3.4 million from $30.4 million, or $0.64 per diluted common share for the three months ended December 31, 2023 and up $0.2 million from $33.7 million, or $0.78 per diluted common share for the first quarter of 2023.

● The Company generated $0.68 per diluted share of operating earnings⁽¹⁾ in the first quarter of 2024, compared to $0.88 for the first quarter of 2023 and $0.72 for the fourth quarter of 2023.

● Net interest income for the three months ended March 31, 2024 was $95.2 million, down $4.0 million, or 4.0% from the fourth quarter of 2023 and up $0.1 million, or 0.1%, from the first quarter of 2023.

● The Company recorded a provision for loan losses of $5.6 million ($0.09 per diluted share) for the three months ended March 31, 2024, compared to $3.9 million ($0.07 per diluted share) in the first quarter of 2023 and $5.1 million ($0.08 per diluted share) in the fourth quarter of 2023.

● Noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023 and $0.6 million of acquisition expenses in the first quarter of 2023, and the $4.8 million impairment of a minority interest equity investment in the fourth quarter of 2023, increased 4.6% compared to the previous quarter and increased 16.6% from the first quarter of 2023.

● In the first quarter of 2023, the Company incurred a $5.0 million ($0.09 per diluted share) securities loss on the write-off of an AFS subordinated debt investment of a failed financial institution. In the first quarter of 2024, the Company sold the previously written-off subordinated debt security and recognized a gain of $2.3 million ($0.04 per diluted share).

● The Company incurred acquisition expenses of $0.3 million and $0.6 million related to the merger with Salisbury in the fourth quarter of 2023 and the first quarter of 2023, respectively.

● In the fourth quarter of 2023, the Company recorded a $4.8 million ($0.08 per diluted share) impairment of its minority interest equity investment in a provider of financial and technology services to residential solar equipment installers due to the uncertainty in the realizability of the investment in other noninterest expense in the consolidated statements of income.

The following table sets forth certain financial highlights:

	Three Months Ended
	March 31, 2024			December 31, 2023			March 31, 2023
Performance:
Diluted earnings per share	$	0.71		$	0.64		$	0.78
Return on average assets(2)		1.02	%		0.89	%		1.16	%
Return on average equity(2)		9.52	%		8.79	%		11.47	%
Return on average tangible common equity(2)		13.87	%		13.08	%		15.31	%
Net interest margin, (FTE)(2)		3.14	%		3.15	%		3.55	%
Capital:
Equity to assets		10.73	%		10.71	%		10.23	%
Tangible equity ratio		7.98	%		7.93	%		7.99	%
Book value per share	$	30.57		$	30.26		$	28.24
Tangible book value per share	$	22.07		$	21.72		$	21.52
Leverage ratio		10.09	%		9.71	%		10.43	%
Common equity tier 1 capital ratio		11.68	%		11.57	%		12.28	%
Tier 1 capital ratio		12.61	%		12.50	%		13.34	%
Total risk-based capital ratio		14.87	%		14.75	%		15.53	%

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The following tables provide non-GAAP reconciliations:

	Three Months Ended
(In thousands, except per share data)	March 31, 2024			December 31, 2023			March 31, 2023
Return on average tangible common equity:
Net income	$	33,823		$	30,446		$	33,658
Amortization of intangible assets (net of tax)		1,626			1,599			402
Net income, excluding intangible amortization	$	35,449		$	32,045		$	34,060
Average stockholders’ equity	$	1,429,602		$	1,373,643		$	1,190,316
Less: average goodwill and other intangibles		401,756			401,978			288,354
Average tangible common equity	$	1,027,846		$	971,665		$	901,962
Return on average tangible common equity(2)		13.87	%		13.08	%		15.31	%
Tangible equity ratio:
Stockholders’ equity	$	1,441,415		$	1,425,691		$	1,211,659
Intangibles		400,819			402,294			288,159
Assets	$	13,439,199		$	13,309,040		$	11,839,730
Tangible equity ratio		7.98	%		7.93	%		7.99	%
Tangible book value per share:
Stockholders’ equity	$	1,441,415		$	1,425,691		$	1,211,659
Intangibles		400,819			402,294			288,159
Tangible equity	$	1,040,596		$	1,023,397		$	923,500
Diluted common shares outstanding		47,155			47,110			42,904
Tangible book value per share	$	22.07		$	21.72		$	21.52
Operating net income:
Net income	$	33,823		$	30,446		$	33,658
Acquisition expenses		-			254			618
Impairment of a minority interest equity investment		-			4,750			-
Securities (gains) losses		(2,183	)		(507	)		4,998
Adjustments to net income	$	(2,183	)	$	4,497		$	5,616
Adjustments to net income (net of tax)	$	(1,703	)	$	3,435		$	4,341
Operating net income	$	32,120		$	33,881		$	37,999
Operating diluted earnings per share	$	0.68		$	0.72		$	0.88

(2) Annualized.

Net Interest Income

Net interest income is the difference between interest income on earning assets, primarily loans and securities and interest expense on interest-bearing liabilities, primarily deposits and borrowings. Net interest income is affected by the interest rate spread, the difference between the yield on interest-earning assets and cost of interest-bearing liabilities, as well as the volumes of such assets and liabilities. Net interest income is one of the key determining factors in a financial institution’s performance as it is the principal source of earnings.

Net interest income was $95.2 million for the first quarter of 2024, down $4.0 million, or 4.0%, from the previous quarter. The FTE net interest margin was 3.14% for the three months ended March 31, 2024, a decrease of 1 bp from the previous quarter. Interest income decreased $4.0 million, or 2.6%, as the yield on average interest-earning assets increased 5 bps from the prior quarter to 4.84%, while average interest-earning assets of $12.27 billion decreased $290.4 million from the prior quarter, primarily due to a decrease in average short-term interest-bearing accounts (“excess liquidity”) and the interest on those funds and one less day in the first quarter of 2024 compared to the fourth quarter of 2023. Interest expense for the three months ended March 31, 2024 was consistent with prior quarter due to lower average balances of short-term borrowings which were offset by the increase in the cost of interest-bearing deposits. Included in net interest income was $2.5 million of acquisition-related net accretion for the three months ended March 31, 2024 and $2.6 million of acquisition-related net accretion for the three months ended December 31, 2023.

Net interest income was $95.2 million for the first quarter of 2024, up $0.1 million, or 0.1%, from the first quarter of 2023. The FTE net interest margin was 3.14% for the three months ended March 31, 2024, a decrease of 41 bps from the first quarter of 2023. Interest income increased $32.7 million, or 28.7%, as the yield on average interest-earning assets increased 58 bps from the same period in 2023 to 4.84%, while average interest-earning assets increased $1.36 billion, or 12.5%, from the first quarter of 2023 primarily due to the Salisbury acquisition and organic loan growth. Interest expense increased $32.6 million, or 170.6%, as the cost of interest-bearing liabilities increased 138 bps to 2.52% for the quarter ended March 31, 2024, primarily due to both a 158 bps increase in interest-bearing deposit costs and a $1.59 billion increase in interest-bearing deposits as a result of the Salisbury acquisition. Included in net interest income was $2.5 million of acquisition-related net accretion for the three months ended March 31, 2024.

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Average Balances and Net Interest Income

The following tables include the condensed consolidated average balance sheet, an analysis of interest income/expense and average yield/rate for each major category of earning assets and interest-bearing liabilities on a taxable equivalent basis.

Three Months Ended	March 31, 2024							December 31, 2023							March 31, 2023
(Dollars in thousands)	Average Balance		Interest		Yield/ Rates			Average Balance		Interest		Yield/ Rates			Average Balance		Interest		Yield/ Rates
Assets:
Short-term interest-bearing accounts	$	47,972	$	534		4.48	%	$	319,907	$	4,508		5.59	%	$	34,215	$	191		2.26	%
Securities taxable(1)		2,278,029		10,806		1.91	%		2,310,409		10,959		1.88	%		2,442,732		11,543		1.92	%
Securities tax-exempt(1) (3)		230,468		2,052		3.58	%		232,575		2,055		3.51	%		202,321		1,402		2.81	%
FRB and FHLB stock		42,296		830		7.89	%		47,994		1,086		8.98	%		41,144		451		4.45	%
Loans(2) (3)		9,674,892		133,373		5.54	%		9,653,191		132,975		5.47	%		8,189,520		101,000		5.00	%
Total interest-earning assets	$	12,273,657	$	147,595		4.84	%	$	12,564,076	$	151,583		4.79	%	$	10,909,932	$	114,587		4.26	%
Other assets		1,055,386							1,052,024							836,879
Total assets	$	13,329,043						$	13,616,100						$	11,746,811
Liabilities and stockholders’ equity:
Money market deposit accounts	$	3,129,160	$	27,734		3.56	%	$	3,045,531	$	26,368		3.43	%	$	2,081,210	$	6,264		1.22	%
NOW deposit accounts		1,600,288		2,994		0.75	%		1,645,401		3,309		0.80	%		1,598,834		1,433		0.36	%
Savings deposits		1,607,659		171		0.04	%		1,666,915		188		0.04	%		1,781,465		142		0.03	%
Time deposits		1,352,559		13,440		4.00	%		1,343,548		12,888		3.81	%		639,645		3,305		2.10	%
Total interest-bearing deposits	$	7,689,666	$	44,339		2.32	%	$	7,701,395	$	42,753		2.20	%	$	6,101,154	$	11,144		0.74	%
Federal funds purchased		19,769		272		5.53	%		217		3		5.48	%		44,334		538		4.92	%
Repurchase agreements		82,419		317		1.55	%		82,387		330		1.59	%		71,340		14		0.08	%
Short-term borrowings		213,390		2,832		5.34	%		345,250		4,618		5.31	%		357,200		4,367		4.96	%
Long-term debt		29,772		290		3.92	%		29,809		294		3.91	%		7,299		47		2.61	%
Subordinated debt, net		119,873		1,800		6.04	%		119,531		1,795		5.96	%		96,966		1,334		5.58	%
Junior subordinated debt		101,196		1,913		7.60	%		101,196		1,948		7.64	%		101,196		1,682		6.74	%
Total interest-bearing liabilities	$	8,256,085	$	51,763		2.52	%	$	8,379,785	$	51,741		2.45	%	$	6,779,489	$	19,126		1.14	%
Demand deposits		3,356,607							3,535,815							3,502,489
Other liabilities		286,749							326,857							274,517
Stockholders’ equity		1,429,602							1,373,643							1,190,316
Total liabilities and stockholders’ equity	$	13,329,043						$	13,616,100						$	11,746,811
Net interest income (FTE)			$	95,832						$	99,842						$	95,461
Interest rate spread						2.32	%						2.34	%						3.12	%
Net interest margin (FTE)						3.14	%						3.15	%						3.55	%
Taxable equivalent adjustment			$	658						$	669						$	395
Net interest income			$	95,174						$	99,173						$	95,066

(1) Securities are shown at average amortized cost.

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

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

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The following table presents changes in interest income and interest expense attributable to changes in volume (change in average balance multiplied by prior year rate), changes in rate (change in rate multiplied by prior year volume) and the net change in net interest income. The net change attributable to the combined impact of volume and rate has been allocated to each in proportion to the absolute dollar amounts of change.

Three Months Ended March 31,	Increase (Decrease) 2024 over 2023
(In thousands)	Volume			Rate			Total
Short-term interest-bearing accounts	$	100		$	243		$	343
Securities taxable		(691	)		(46	)		(737	)
Securities tax-exempt		219			431			650
FRB and FHLB stock		13			366			379
Loans		20,254			12,119			32,373
Total FTE interest income	$	19,895		$	13,113		$	33,008
Money market deposit accounts	$	4,460		$	17,010		$	21,470
NOW deposit accounts		1			1,560			1,561
Savings deposits		(15	)		44			29
Time deposits		5,587			4,548			10,135
Federal funds purchased		(327	)		61			(266	)
Repurchase agreements		3			300			303
Short-term borrowings		(1,856	)		321			(1,535	)
Long-term debt		209			34			243
Subordinated debt, net		345			121			466
Junior subordinated debt		-			231			231
Total FTE interest expense	$	8,407		$	24,230		$	32,637
Change in FTE net interest income	$	11,488		$	(11,117	)	$	371

Noninterest Income

Noninterest income is a significant source of revenue for the Company and an important factor in the Company’s results of operations. The following table sets forth information by category of noninterest income for the periods indicated:

	Three Months Ended March 31,
(In thousands)	2024		2023
Service charges on deposit accounts	$	4,117	$	3,548
Card services income		5,195		4,845
Retirement plan administration fees		14,287		11,462
Wealth management		9,697		8,087
Insurance services		4,388		3,931
Bank owned life insurance income		2,352		1,878
Net securities gains (losses)		2,183		(4,998	)
Other		3,173		2,656
Total noninterest income	$	45,392	$	31,409

Noninterest income for the three months ended March 31, 2024 was $45.4 million, up $6.9 million, or 17.9%, from the prior quarter and up $14.0 million, or 44.5%, from the first quarter of 2023. During the three months ended March 31, 2023, the Company incurred a $5.0 million securities loss on the write-off of a subordinated debt security of a failed financial institution. During the three months ended March 31, 2024, the Company sold the previously written-off subordinated debt security and recognized a gain of $2.3 million. Excluding net securities gains (losses), noninterest income for the three months ended March 31, 2024 was $43.2 million, up $5.2 million, or 13.8%, from the prior quarter and up $6.8 million, or 18.7%, from the first quarter of 2023. The increase from the prior quarter was primarily driven by an increase in retirement plan administration fees, wealth management fees and insurance services. The increase in retirement plan administration fees from the prior quarter was due primarily to certain seasonal activity-based fees in the first quarter, organic growth and market performance. Wealth management fees increased from the prior quarter due primarily to organic growth and market performance. Insurance services increased from the prior quarter due to organic growth, higher levels of policy renewals and first quarter seasonality. The increase from the first quarter of 2023 was driven by an increase in retirement plan administration fees, wealth management fees and insurance services. The increase in retirement plan administration fees from the first quarter of 2023 includes the impact from the acquisition of Retirement Direct, LLC on July 1, 2023, organic growth and market performance. Wealth management fees increased from the first quarter of 2023 driven by the Salisbury acquisition, organic growth and market performance. Insurance services increased from the first quarter of 2023 due to higher levels of policy renewals and organic growth. In addition, the increases in service charges on deposit accounts and card services income were impacted by the Salisbury acquisition revenues.

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Noninterest Expense

Noninterest expenses are also an important factor in the Company’s results of operations. The following table sets forth the major components of noninterest expense for the periods indicated:

	Three Months Ended March 31,
(In thousands)	2024		2023
Salaries and employee benefits	$	55,704	$	48,155
Technology and data services		9,750		9,007
Occupancy		8,098		7,220
Professional fees and outside services		4,853		4,178
Office supplies and postage		1,865		1,628
FDIC assessment		1,735		1,396
Advertising		812		649
Amortization of intangible assets		2,168		536
Loan collection and other real estate owned, net		553		855
Acquisition expenses		-		618
Other		6,235		5,080
Total noninterest expense	$	91,773	$	79,322

Noninterest expense for the three months ended March 31, 2024 was $91.8 million, down $1.0 million, or 1.1%, from the prior quarter and up $12.5 million, or 15.7%, from the first quarter of 2023. The Company incurred acquisition expenses in the fourth quarter of 2023 and the first quarter of 2023 of $0.3 million and $0.6 million, respectively related to the merger with Salisbury. Included in other noninterest expenses in the fourth quarter of 2023, the Company recorded a $4.8 million impairment of a minority interest equity investment in a provider of financial and technology services to residential solar equipment installers due to the uncertainty in the realizability of the investment. Excluding acquisition expenses and the impairment of a minority interest equity investment, noninterest expense for the three months ended March 31, 2024 was $91.8 million, up $4.0 million, or 4.6%, from the prior quarter and up $13.1 million, or 16.6%, from the first quarter of 2023. The increase from the prior quarter was driven by higher salaries and employee benefits due to higher incentive compensation costs, seasonally higher payroll taxes and stock-based compensation expenses and merit pay increases which were effective in March. In addition, the increase in occupancy costs was driven by seasonal costs including utilities expenses, timing of maintenance activities and additional expenses from the Salisbury acquisition. These costs were partially offset by decreases in other expenses due primarily to timing of expenses including travel and lower amortization expenses associated with the Company’s retirement plans. The increase from the first quarter of 2023 was driven by higher salaries and employee benefits due to the Salisbury acquisition and higher stock-based compensation expenses. In addition, the increase in technology and data services, occupancy expense professional fees and outside services and amortization of intangible assets were impacted by additional expenses from the Salisbury acquisition.

Income Taxes

Income tax expense for the three months ended March 31, 2024 was $9.4 million, up $0.1 million from the prior quarter and down $0.2 million from the first quarter of 2023. The effective tax rate was 21.7% for the first quarter of 2024 compared to 23.5% for the prior quarter and 22.2% for the first quarter of 2023. The decrease in the effective tax rate from the prior quarter and the first quarter of 2023 was due to a higher level of tax-exempt income as a percentage of total taxable income.

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ANALYSIS OF FINANCIAL CONDITION

Securities

Total securities decreased $24.9 million, or 1.0%, from December 31, 2023 to March 31, 2024. The securities portfolio represented 17.5% of total assets as of March 31, 2024 as compared to 17.8% of total assets as of December 31, 2023.

The following table details the composition of securities AFS, securities HTM and equity securities for the periods indicated:

	March 31, 2024			December 31, 2023
Mortgage-backed securities:
With maturities 15 years or less		12	%		12	%
With maturities greater than 15 years		10	%		10	%
Collateral mortgage obligations		36	%		36	%
Municipal securities		17	%		17	%
U.S. agency notes		21	%		21	%
Corporate		2	%		2	%
Equity securities		2	%		2	%
Total		100	%		100	%

The Company’s mortgage-backed securities, U.S. agency notes and collateralized mortgage obligations are all guaranteed by Fannie Mae, Freddie Mac, FHLB, Federal Farm Credit Banks or Ginnie Mae (“GNMA”). GNMA securities are considered similar in credit quality to U.S. Treasury securities, as they are backed by the full faith and credit of the U.S. government. Currently, there are no subprime mortgages in our investment portfolio.

Loans

A summary of the loan portfolio by major categories⁽¹⁾, net of deferred fees and origination costs, for the periods indicated is as follows:

(In thousands)	March 31, 2024		December 31, 2023
Commercial & industrial	$	1,353,446	$	1,354,248
Commercial real estate		3,646,739		3,626,910
Residential real estate		2,133,289		2,125,804
Home equity		328,673		337,214
Indirect auto		1,190,734		1,130,132
Residential solar		896,147		917,755
Other consumer		139,049		158,650
Total loans	$	9,688,077	$	9,650,713

(1) Loans are summarized by business line which do not align to how the Company assesses credit risk in the allowance for credit losses.

Total loans increased by $37.4 million, or 1.6% annualized, from December 31, 2023 to March 31, 2024. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $77.9 million, or 3.6% annualized. Commercial and industrial loans decreased $0.8 million to $1.35 billion; commercial real estate loans increased $19.8 million to $3.65 billion; and total consumer loans increased $18.3 million to $4.69 billion. Total loans represent approximately 72.1% of assets as of March 31, 2024, as compared to 72.5% as of December 31, 2023.

Loans in the C&I and CRE portfolios consist primarily of loans made to small and medium-sized entities. The Company offers a variety of loan options to meet the specific needs of our commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion, equipment purchases, livestock purchases and seasonal crop expenses. These loans are usually collateralized by business assets such as equipment, accounts receivable and perishable agricultural products, which are exposed to industry price volatility. The Company extends CRE loans to facilitate various real estate transactions, encompassing acquisitions, refinancing, expansions and enhancements to both commercial and agricultural properties. These loans are secured by liens on real estate assets, covering a spectrum of properties including apartments, commercial structures, healthcare facilities and others, whether occupied by owners or non-owners. Risks associated with the CRE portfolio pertain to the borrowers’ capacity to meet interest and principal payments throughout the loan’s duration, as well as their ability to secure financing upon the loan’s maturity. The Company has a risk management framework that includes rigorous underwriting standards, targeted portfolio stress testing, interest rate sensitivities on commercial borrowers and comprehensive credit risk monitoring mechanisms. The Company remains vigilant in monitoring market trends, economic indicators and regulatory developments to promptly adapt our risk management strategies as needed.

Within the CRE portfolio, approximately 79% comprises Non-Owner Occupied CRE, with the remaining 21% being Owner-Occupied CRE. Non-Owner Occupied CRE includes diverse sectors across the Company’s markets such as apartments (31%), office spaces (17%) and construction (14%), along with retail, manufacturing, small commercial, accommodations and others. Notably, office CRE loans account for 5% of the total outstanding loans, predominantly serving suburban medical and professional tenants across suburban and small urban markets. These loans carry an average size of $2.5 million, with 12% maturing over the next two years. As of March 31, 2024 and December 31, 2023, the total CRE construction and development loans amounted to $373.4 million and $347.2 million, respectively.

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Allowance for Credit Losses, Provision for Loan Losses and Nonperforming Assets

Beginning January 1, 2023, the Company adopted ASU 2022-02 Financial Instruments - CECL Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which resulted in an insignificant change to the Company’s methodology for estimating the allowance for credit losses on TDRs since December 31, 2022. The January 1, 2023 decrease in the allowance for credit loss on TDR loans relating to adoption of ASU 2022-02 was $0.6 million, which increased retained earnings by $0.5 million and decreased the deferred tax asset by $0.1 million.

Management considers the accounting policy relating to the allowance for credit losses to be a critical estimate given the degree of judgment exercised in evaluating the level of the allowance required to estimate expected credit losses over the expected contractual life of our loan portfolio and the material effect that such judgments can have on the consolidated results of operations.

The CECL approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is confirmed to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Required additions or reductions to the allowance for credit losses are made periodically by charges or credits to the provision for loan losses. These are necessary to maintain the allowance at a level which management believes is reasonably reflective of the overall loss expected over the contractual life of the loan portfolio. While management uses available information to recognize losses on loans, additions or reductions to the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in risk associated with portfolio content and/or changes in management’s assessment of any or all of the determining factors discussed above. Management considers the allowance for credit losses to be appropriate based on evaluation and analysis of the loan portfolio.

Management estimates the allowance balance for credit losses using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Company historical loss experience was supplemented with peer information when there was insufficient loss data for the Company. Significant management judgment is required at each point in the measurement process.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an econometric, discounted probability of default and loss given default modeling methodology in which distinct, segment-specific multi-variate regression models are applied to multiple, probabilistically weighted external economic forecasts. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Upon adoption of CECL, management revised the manner in which loans were pooled for similar risk characteristics. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation and have been combined or subsegmented as needed to ensure loans of similar risk profiles are appropriately pooled.

Additional information about our allowance for credit losses is included in Note 6 to the unaudited interim consolidated financial statements in this Quarterly Report on Form 10-Q as well as in the “Critical Accounting Estimates” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s management considers the allowance for credit losses to be appropriate based on evaluation and analysis of the loan portfolio.

The allowance for credit losses totaled $115.3 million at March 31, 2024, compared to $114.4 million at December 31, 2023 and $100.3 million at March 31, 2023. The allowance for credit losses as a percentage of loans was 1.19% at March 31, 2024 and December 31, 2023, compared to 1.21% at March 31, 2023. The increase in allowance for credit losses from December 31, 2023 compared to March 31, 2024 was primarily due the slowing of prepayment speeds partly offset by the decline in consumer loans with higher allowance levels and a decline in the PCD allowance as purchased loan balances decreased. The increase in the allowance for credit losses from March 31, 2023 to March 31, 2024 was primarily due to the $14.5 million of allowance for acquired Salisbury loans which included both the $5.8 million allowance for PCD loans reclassified from loans and the $8.8 million allowance for non-PCD loans recognized through the provision for loan losses.

The allowance for credit losses was 305.12% of nonperforming loans at March 31, 2024, compared to 302.05% at December 31, 2023 and 538.63% at March 31, 2023. The allowance for credit losses was 327.66% of nonaccrual loans at March 31, 2024, compared to 334.38% of nonaccrual loans at December 31, 2023 and 615.63% of nonaccrual loans at March 31, 2023. The decline in the coverage of the allowance to nonperforming and nonaccrual loans from March 31, 2023 to March 31, 2024 largely relates to one nonperforming relationship that is individually evaluated for purposes of the allowance for credit losses which had no reserve established at March 31, 2024 and December 31, 2023.

The provision for loan losses was $5.6 million for three months ended March 31, 2024, compared to $5.1 million in the prior quarter and $3.9 million for the same period in the prior year. Provision expense increased from the prior quarter due to the slowing of prepayment speeds offset by a slight decline in net charge-offs. The increase in provision expense from March 31, 2023, was driven largely due to higher net charge-offs. Net charge-offs totaled $4.7 million during the three months ended March 31, 2024, compared to net charge-offs of $5.3 million during the fourth quarter of 2023 and $3.8 million in the first quarter of 2023. Net charge-offs to average loans was 19 bps for the three months ended March 31, 2024, compared to 22 bps for the fourth quarter of 2023 and 19 bps for the three months ended March 31, 2023.

As of March 31, 2024, the unfunded commitment reserve totaled $4.7 million, compared to $5.1 million as of December 31, 2023 and $4.5 million as of March 31, 2023.

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Nonperforming assets consist of nonaccrual loans, loans over 90 days past due and still accruing, troubled loans modifications, OREO and nonperforming securities. Loans are generally placed on nonaccrual when principal or interest payments become 90 days past due, unless the loan is well secured and in the process of collection. Loans may also be placed on nonaccrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified, commercial and commercial real estate loans risk graded substandard or doubtful, and nonperforming loans specifically evaluated for individual credit loss is $1.0 million. OREO represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs.

	March 31, 2024						December 31, 2023
(Dollars in thousands)	Amount			%			Amount			%
Nonaccrual loans:
Commercial	$	21,822			62	%	$	21,567			63	%
Residential		10,153			29	%		9,632			28	%
Consumer		2,698			8	%		2,566			8	%
Troubled loan modifications		516			1	%		448			1	%
Total nonaccrual loans	$	35,189			100	%	$	34,213			100	%
Loans over 90 days past due and still accruing:
Commercial	$	-			-		$	1			-
Residential		227			9	%		554			15	%
Consumer		2,373			91	%		3,106			85	%
Total loans over 90 days past due and still accruing	$	2,600			100	%	$	3,661			100	%
Total nonperforming loans	$	37,789					$	37,874
OREO		-						-
Total nonperforming assets	$	37,789					$	37,874
Total nonaccrual loans to total loans		0.36	%					0.35	%
Total nonperforming loans to total loans		0.39	%					0.39	%
Total nonperforming assets to total assets		0.28	%					0.28	%
Total allowance for loan losses to total nonperforming loans		305.12	%					302.05	%
Total allowance for loan losses to nonaccrual loans		327.66	%					334.38	%

Total nonperforming assets were $37.8 million at March 31, 2024, compared to $37.9 million at December 31, 2023 and $18.7 million at March 31, 2023. Nonperforming loans at March 31, 2024 were $37.8 million or 0.39% of total loans, compared with $37.9 million or 0.39% of total loans at December 31, 2023 and $18.6 million or 0.23% of total loans at March 31, 2023. The increase in nonperforming assets was attributable to a diversified, multi-tenant commercial real estate development relationship that was placed into a nonaccrual status in the fourth quarter of 2023, in which NBT is a participant. The relationship is being actively managed and recent appraised values continue to support its carrying value, and as such, no specific reserve has been established. Total nonaccrual loans were $35.2 million or 0.36% of total loans at March 31, 2024, compared to $34.2 million or 0.35% of total loans at December 31, 2023 and $16.3 million or 0.20% of total loans at March 31, 2023. Past due loans as a percentage of total loans was 0.33% at March 31, 2024, up from 0.32% at December 31, 2023 and up from 0.30% at March 31, 2023.

In addition to nonperforming loans discussed above, the Company has also identified approximately $112.7 million in potential problem loans at March 31, 2024 as compared to $87.7 million at December 31, 2023 and $55.9 million at March 31, 2023. Potential problem loans are loans that are currently performing, with a possibility of loss if weaknesses are not corrected. Such loans may need to be disclosed as nonperforming at some time in the future. Potential problem loans are classified by the Company’s loan rating system as “substandard.” Potential problem loans have increased to more normalized levels and the increase primarily relates to a few commercial real estate relationships reflecting changing conditions in commercial real estate markets including construction delays, rising costs and delays in leasing up spaces. The increase in potential problem loans from March 31, 2023 is primarily due to the migration of $75.7 million to substandard, partially offset by an increase of $18.9 million in nonaccrual loan balances. Management cannot predict the extent to which economic conditions may worsen or other factors, which may impact borrowers and the potential problem loans. Accordingly, there can be no assurance that other loans will not become over 90 days past due, be placed on nonaccrual, become troubled loans modifications or require increased allowance coverage and provision for loan losses. To mitigate this risk the Company maintains a diversified loan portfolio, has no significant concentration in any particular industry and originates loans primarily within its footprint.

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Deposits

Total deposits were $11.20 billion at March 31, 2024, up $226.3 million, or 2.1%, from December 31, 2023. As of March 31, 2024 there were $134.5 million of brokered time deposits, down from $155.2 million as of December 31, 2023. The Company continues to experience the migration from no interest and low interest checking and savings accounts into higher cost money market and time deposit instruments. The increase in deposits was primarily due to the inflow of seasonal municipal deposits during the first quarter of 2024. The Company’s composition of total deposits is diverse and granular with over 561,000 accounts with an average per account balance of $19,947 as of March 31, 2024. As of March 31, 2024 and December 31, 2023 the estimated amounts of uninsured deposits based on the same methodologies and assumptions used for the bank regulatory reporting was $4.1 billion. Total average deposits increased $1.44 billion, or 15.0%, from the same period last year. The increase in average balances was primarily due to the $1.31 billion in deposits acquired from Salisbury in the third quarter of 2023.

Borrowed Funds

The Company’s borrowed funds consist of short-term borrowings and long-term debt. Short-term borrowings totaled $267.1 million at March 31, 2024 compared to $386.7 million at December 31, 2023. Long-term debt was $29.8 million at March 31, 2024 and December 31, 2023.

For more information about the Company’s borrowing capacity and liquidity position, see “Liquidity Risk” below.

Subordinated Debt

On June 23, 2020, the Company issued $100.0 million of 5.00% fixed-to-floating rate subordinated notes due 2030. The subordinated notes, which qualify as Tier 2 capital, bear interest at an annual rate of 5.00%, payable semi-annually in arrears commencing on January 1, 2021, and a floating rate of interest equivalent to the three-month SOFR plus a spread of 4.85%, payable quarterly in arrears commencing on October 1, 2025. The subordinated debt issuance cost of $2.2 million is being amortized on a straight-line basis into interest expense over five years. The Company repurchased $2.0 million of the subordinated notes in 2022 at a discount of $0.1 million.

Subordinated notes assumed in connection with the Salisbury acquisition included $25.0 million of 3.50% fixed-to-floating rate subordinated notes due 2031. The subordinated notes, which qualify as Tier 2 capital, bear interest at an annual rate of 3.50%, payable quarterly in arrears commencing on June 30, 2021, and a floating rate of interest equivalent to the three-month SOFR plus a spread of 2.80%, payable quarterly in arrears commencing on June 30, 2026. As of the acquisition date, the fair value discount was $3.0 million, which will be amortized into interest expense over the expected call or maturity date.

As of March 31, 2024 and December 31, 2023 the subordinated debt net of unamortized issuance costs and fair value discount was $120.1 million and $119.7 million, respectively.

Capital Resources

Stockholders’ equity of $1.44 billion represented 10.73% of total assets at March 31, 2024 compared with $1.43 billion, or 10.71% of total assets, as of December 31, 2023. Stockholders’ equity increased $15.7 million from December 31, 2023 driven by net income of $33.8 million for the three months ended March 31, 2024, partially offset by dividends declared of $15.1 million and a $3.6 million increase in accumulated other comprehensive loss due primarily to the change in the fair value of securities available for sale.

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The Company purchased 1,900 shares of its common stock during the three months ended March 31, 2024 at an average price of $33.03 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 effect of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of March 31, 2024, there were 1,998,100 shares available for repurchase under the plan authorized on December 18, 2023, which is set to expire on December 31, 2025.

As the capital ratios in the following table indicate, the Company remained “well capitalized” at March 31, 2024 under applicable bank regulatory requirements. Capital measurements are well in excess of regulatory minimum guidelines and meet the requirements to be considered well capitalized for all periods presented. To be considered well capitalized, tier 1 leverage, common equity tier 1 capital, tier 1 capital and total risk-based capital ratios must be 5%, 6.5%, 8% and 10%, respectively.

Capital Measurements	March 31, 2024			December 31, 2023
Tier 1 leverage ratio		10.09	%		9.71	%
Common equity tier 1 capital ratio		11.68	%		11.57	%
Tier 1 capital ratio		12.61	%		12.50	%
Total risk-based capital ratio		14.87	%		14.75	%
Cash dividends as a percentage of net income		44.62	%		47.05	%
Per common share:
Book value	$	30.57		$	30.26
Tangible book value(1)	$	22.07		$	21.72
Tangible equity ratio(2)		7.98	%		7.93	%

(1) Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.

(2) Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.

In March 2020, the OCC, the Board of Governors of the Federal Reserve System and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. Under the modified CECL transition provision, the regulatory capital impact of the January 1, 2020 CECL adoption date adjustment to the allowance for credit losses (after-tax) has been deferred and will phase into regulatory capital at 25% per year commencing January 1, 2022. For the ongoing impact of CECL, the Company was allowed to defer the regulatory capital impact of the allowance for credit losses in an amount equal to 25% of the change in the allowance for credit losses (pre-tax) recognized through earnings for each period between January 1, 2020 and December 31, 2021. The cumulative adjustment to the allowance for credit losses between January 1, 2020 and December 31, 2021, will also phase into regulatory capital at 25% per year commencing January 1, 2022. The Company adopted the capital transition relief over the permissible five-year period.

Liquidity and Interest Rate Sensitivity Management

Market Risk

Interest rate risk is the most significant market risk affecting the Company. Other types of market risk, such as foreign currency exchange rate risk and commodity price risk, do not arise in the normal course of the Company’s business activities or are immaterial to the results of operations.

Interest rate risk is defined as an exposure to a movement in interest rates that could have an adverse effect on the Company’s net interest income. Net interest income is susceptible to interest rate risk to the degree that interest-bearing liabilities mature or reprice on a different basis than earning assets. When interest-bearing liabilities mature or reprice more quickly than earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when earning assets mature or reprice more quickly than interest-bearing liabilities, falling interest rates could result in a decrease in net interest income.

To manage the Company’s exposure to changes in interest rates, management monitors the Company’s interest rate risk. Management’s Asset Liability Committee (“ALCO”) meets monthly to review the Company’s interest rate risk position and profitability and to recommend strategies for consideration by the Board of Directors (the “Board”). Management also reviews loan and deposit pricing and the Company’s securities portfolio, formulates investment and funding strategies and oversees the timing and implementation of transactions to assure attainment of the Board’s objectives in the most effective manner. Notwithstanding the Company’s interest rate risk management activities, the potential for changing interest rates is an uncertainty that can have an adverse effect on net income.

In managing the Company’s asset/liability position, the Board and management aim to manage the Company’s interest rate risk while minimizing net interest margin compression. At times, depending on the level of general interest rates, the relationship between long and short-term interest rates, market conditions and competitive factors, the Board and management may determine to increase the Company’s interest rate risk position somewhat in order to increase its net interest margin. The Company’s results of operations and net portfolio values remain vulnerable to changes in interest rates and fluctuations in the difference between long and short-term interest rates.

38

The primary tool utilized by the ALCO to manage interest rate risk is earnings at risk modeling (interest rate sensitivity analysis). Information, such as principal balance, interest rate, maturity date, cash flows, next repricing date (if needed) and current rates are uploaded into the model to create an ending balance sheet. In addition, the ALCO makes certain assumptions regarding prepayment speeds for loans and mortgage related investment securities along with any optionality within the deposits and borrowings. The model is first run under an assumption of a flat rate scenario (i.e. no change in current interest rates) with a static balance sheet. Three additional models are run in which a gradual increase of 200 bps, a gradual increase of 100 bps and a gradual decrease of 200 bps takes place over a 12-month period with a static balance sheet. Under these scenarios, assets subject to prepayments are adjusted to account for faster or slower prepayment assumptions. Any investment securities or borrowings that have callable options embedded in them are handled accordingly based on the interest rate scenario. The resulting changes in net interest income are then measured against the flat rate scenario. The Company also runs other interest rate scenarios to highlight potential interest rate risk.

The Company’s Interest Rate Sensitivity has migrated to a near neutral position. In the declining rate scenario, net interest income is projected to modestly decrease when compared to the forecasted net interest income in the flat rate scenario through the simulation period. The decrease in net interest income is a result of earning assets repricing and rolling over at lower yields at a faster pace than interest-bearing liabilities decline and/or reach their floors. In the rising rate scenarios, net interest income is near neutral, impacted by slowing prepayments speeds and increased deposit reactivity; the magnitude of potential impact on earnings may be affected by the ability to lag deposit repricing on NOW, savings, money market deposit accounts and time accounts. Net interest income for the next twelve months in the +200/+100/-200 bp scenarios, as described above, is within the internal policy risk limits of not more than a 7.5% reduction in net interest income. The following table summarizes the percentage change in net interest income in the rising and declining rate scenarios over a 12-month period from the forecasted net interest income in the flat rate scenario using the March 31, 2024 balance sheet position:

Interest Rate Sensitivity Analysis
Change in interest rates	Percent change in
(in bps)	net interest income
+200	(0.15%)
+100	0.22%
-200	(0.22%)

The Company anticipates that the trajectory of net interest income will continue to depend significantly on the timing and path of short to mid-term interest rates which are heavily driven by inflationary pressures and FOMC monetary policy. In response to the economic impact of the pandemic, the federal funds rate was reduced to near zero in March 2020, term interest rates fell sharply across the yield curve and the Company reduced deposit rates. Post-pandemic, inflationary pressures have resulted in a higher overall yield curve with Federal Funds increases of 425 bps in 2022 with an additional 100 bps of increases in 2023. While deposit rates increased meaningfully in 2023 and have continued to increase in 2024 in conjunction with elevated short term interest rates, there has been some moderation to the level of increase. The Company continues to focus on managing deposit expense in an environment of elevated interest rates while allowing assets to reprice upward.

Liquidity Risk

Liquidity risk arises from the possibility that the Company may not be able to satisfy current or future financial commitments or may become unduly reliant on alternate funding sources. The objective of liquidity management is to ensure the Company can fund balance sheet growth, meet the cash flow requirements of depositors wanting to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs. ALCO is responsible for liquidity management and has developed guidelines, which cover all assets and liabilities, as well as off-balance sheet items that are potential sources or uses of liquidity. Liquidity policies must also provide the flexibility to implement appropriate strategies, along with regular monitoring of liquidity and testing of the contingent liquidity plan. Requirements change as loans grow, deposits and securities mature and payments on borrowings are made. Liquidity management includes a focus on interest rate sensitivity management with a goal of avoiding widely fluctuating net interest margins through periods of changing economic conditions. Loan repayments and maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of investment securities and prepayments of loans and mortgage-related securities are strongly influenced by interest rates, the housing market, general and local economic conditions, and competition in the marketplace. Management continually monitors marketplace trends to identify patterns that might improve the predictability of the timing of deposit flows or asset prepayments.

The primary liquidity measurement the Company utilizes is called “Basic Surplus,” which captures the adequacy of its access to reliable sources of cash relative to the stability of its funding mix of average liabilities. This approach recognizes the importance of balancing levels of cash flow liquidity from short and long-term securities with the availability of dependable borrowing sources, which can be accessed when necessary. At March 31, 2024, the Company’s Basic Surplus measurement was 16.2% of total assets, or $2.18 billion, as compared to the December 31, 2023 Basic Surplus of 11.6%, or $1.54 billion, and was above the Company’s minimum of 5% (calculated at $672.0 million and $665.5 million of period end total assets at March 31, 2024 and December 31, 2023, respectively) set forth in its liquidity policies.

39

At March 31, 2024 and December 31, 2023, FHLB advances outstanding totaled $132.7 million and $322.7 million, respectively. At March 31, 2024 and December 31, 2023, the Bank had $99.0 million and $77.0 million, respectively, of collateral encumbered by municipal letters of credit. The Bank is a member of the FHLB system and had additional borrowing capacity from the FHLB of approximately $1.81 billion at March 31, 2024 and $1.11 billion at December 31, 2023. In addition, unpledged securities could have been used to increase borrowing capacity at the FHLB by an additional $662.9 million and $823.3 million at March 31, 2024 and December 31, 2023, respectively, or used to collateralize other borrowings, such as repurchase agreements. The Company also has the ability to issue brokered time deposits and to borrow against established borrowing facilities with other banks (federal funds), which could provide additional liquidity of $2.03 billion at March 31, 2024 and $2.01 billion at December 31, 2023. In addition, the Bank has a “Borrower-in-Custody” program with the FRB with the addition of the ability to pledge automobile and residential solar loans as collateral. At March 31, 2024 and December 31, 2023, the Bank had the capacity to borrow $1.06 billion and $1.02 billion, respectively, from this program. The Company’s internal policies authorize borrowings up to 25% of assets. Under this policy, remaining available borrowing capacity totaled $3.13 billion at March 31, 2024 and $2.99 billion at December 31, 2023.

This Basic Surplus approach enables the Company to appropriately manage liquidity from both operational and contingency perspectives. By tempering the need for cash flow liquidity with reliable borrowing facilities, the Company is able to operate with a more fully invested and, therefore, higher interest income generating securities portfolio. The makeup and term structure of the securities portfolio is, in part, impacted by the overall interest rate sensitivity of the balance sheet. Investment decisions and deposit pricing strategies are impacted by the liquidity position. The Company considers its Basic Surplus position to be strong. However, certain events may adversely impact the Company’s liquidity position in 2024. Continued increases to interest rates could result in deposit declines as depositors have alternative opportunities for yield on their excess funds. In the current economic environment, draws against lines of credit could drive asset growth higher. Disruptions in wholesale funding markets could spark increased competition for deposits. These scenarios could lead to a decrease in the Company’s Basic Surplus measure below the minimum policy level of 5%. Note, enhanced liquidity monitoring was put in place to quickly respond to the changing environment during the COVID-19 pandemic including increasing the frequency of monitoring and adding additional sources of liquidity. While the pandemic has come to an end, this enhanced monitoring continues as rising interest rates and the recent bank failures have led to a deposit decline in the banking system and increased volatility to liquidity risk.

At March 31, 2024, a portion of the Company’s loans and securities were pledged as collateral on borrowings. Therefore, once on-balance-sheet liquidity is reduced, future growth of earning assets will depend upon the Company’s ability to obtain additional funding, through growth of core deposits and collateral management and may require further use of brokered time deposits or other higher cost borrowing arrangements.

The Company’s primary source of funds is dividends from its subsidiaries. Various laws and regulations restrict the ability of banks to pay dividends to their stockholders. Generally, the payment of dividends by the Company in the future as well as the payment of interest on the capital securities will require the generation of sufficient future earnings by its subsidiaries.

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends. The approval of the OCC is required to pay dividends when a bank fails to meet certain minimum regulatory capital standards or when such dividends are in excess of a subsidiary bank’s earnings retained in the current year plus retained net profits for the preceding two years as specified in applicable OCC regulations. At March 31, 2024, approximately $77.1 million of the total stockholders’ equity of the Bank was available for payment of dividends to the Company without approval by the OCC. The Bank’s ability to pay dividends is also subject to the Bank being in compliance with regulatory capital requirements. The Bank is currently in compliance with these requirements. Under the State of Delaware General Corporation Law, the Company may declare and pay dividends either out of accumulated net retained earnings or capital surplus.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information called for by Item 3 is contained in the Liquidity and Interest Rate Sensitivity Management section of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2024, the Company’s disclosure controls and procedures were effective.

40

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no material legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of their property is subject.

ITEM 1A. RISK FACTORS

There are no material changes to the risk factors as previously discussed in Part I, Item 1A. of our 2023 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth the information with respect to purchases made by the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a) (3) under the Securities Exchange Act of 1934) of our common stock during the quarter ended March 31, 2024:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan		Maximum Number of Shares That May Yet be Purchased Under the Plans(1)
1/1/24 - 1/31/24		-	$	-		-		2,000,000
2/1/24 - 2/29/24		-		-		-		2,000,000
3/1/24 - 3/31/24		1,900		33.03		1,900		1,998,100
Total		1,900	$	33.03		1,900		1,998,100

(1) The Company purchased 1,900 shares of its common stock during the first quarter of 2024 at an average price of $33.03 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 March 31, 2024, there were 1,998,100 shares available for repurchase under the plan announced on December 18, 2023, which is set to expire on December 31, 2025.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

During the three months ended March 31, 2024, there were no Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements adopted, modified or terminated by any director or officer of the Company.

ITEM 6. EXHIBITS

3.1	Restated Certificate of Incorporation of NBT Bancorp Inc. as amended through July 1, 2015 (filed as Exhibit 3.1 to Registrant’s Form 10-Q, filed on August 10, 2015 and incorporated herein by reference).
3.2	Amended and Restated Bylaws of NBT Bancorp Inc. effective May 22, 2018 (filed as Exhibit 3.1 to Registrant’s Form 8-K, filed on May 23, 2018 and incorporated herein by reference).
3.3	Certificate of Designation of the Series A Junior Participating Preferred Stock (filed as Exhibit A to Exhibit 4.1 of the Registrant’s Form 8-K, filed on November 18, 2004 and incorporated herein by reference).
31.1	Certification by the Chief Executive Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
31.2	Certification by the Chief Financial Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH	Inline XBRL Taxonomy Extension Schema Document.

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

41

SIGNATURES

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 thereunto duly authorized, this 9th day of May 2024.

	NBT BANCORP INC.
By:	/s/ Scott A. Kingsley
	Scott A. Kingsley
	Chief Financial Officer

42

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John H. Watt, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of NBT Bancorp Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024

By:	/s/ John H. Watt, Jr.
	John H. Watt, Jr.
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott A. Kingsley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NBT Bancorp Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024

By:	/s/ Scott A. Kingsley
	Scott A. Kingsley
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Written Statement of the Chief Executive Officer Pursuant to Section 906 of the SARBANES-OXLEY ACT OF 2002

The undersigned, the Chief Executive Officer of NBT Bancorp Inc. (the “Company”), hereby certifies that to his knowledge on the date hereof:

(a) the Form 10-Q of the Company for the Quarterly Period Ended March 31, 2024, filed on the date hereof with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John H. Watt, Jr.

John H. Watt, Jr.

Chief Executive Officer

May 9, 2024

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NBT Bancorp Inc. and will be retained by NBT Bancorp Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Written Statement of the Chief Financial Officer Pursuant to Section 906 of the SARBANES-OXLEY ACT OF 2002

The undersigned, the Chief Financial Officer of NBT Bancorp Inc. (the “Company”), hereby certifies that to his knowledge on the date hereof:

(a) the Form 10-Q of the Company for the Quarterly Period Ended March 31, 2024, filed on the date hereof with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Scott A. Kingsley

Scott A. Kingsley

Chief Financial Officer

May 9, 2024

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NBT Bancorp Inc. and will be retained by NBT Bancorp Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	0-14703
Entity Registrant Name	NBT BANCORP INC
Entity Central Index Key	0000790359
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1268674
Entity Address, Address Line One	52 South Broad Street
Entity Address, City or Town	Norwich
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	13815
City Area Code	607
Local Phone Number	337-2265
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NBTB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,149,315

XML

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 162,460	$ 173,811
Short-term interest-bearing accounts	156,632	31,378
Equity securities, at fair value	39,470	37,591
Securities available for sale, at fair value	1,418,471	1,430,858
Securities held to maturity (fair value $793,319 and $814,524, respectively)	890,863	905,267
Federal Reserve and Federal Home Loan Bank stock	37,336	45,861
Loans held for sale	3,263	3,371
Loans	9,688,077	9,650,713
Less allowance for loan losses	115,300	114,400
Net loans	9,572,777	9,536,313
Premises and equipment, net	80,239	80,675
Goodwill	361,851	361,851
Intangible assets, net	38,968	40,443
Bank owned life insurance	267,476	265,732
Other assets	409,393	395,889
Total assets	13,439,199	13,309,040
Liabilities
Demand (noninterest bearing)	3,359,789	3,413,829
Savings, NOW and money market	6,467,364	6,230,456
Time	1,368,136	1,324,709
Total deposits	11,195,289	10,968,994
Short-term borrowings	267,134	386,651
Long-term debt	29,759	29,796
Subordinated debt, net	120,101	119,744
Junior subordinated debt	101,196	101,196
Other liabilities	284,305	276,968
Total liabilities	11,997,784	11,883,349
Stockholders' equity
Preferred stock, $0.01 par value. 2,500,000 shares authorized	0	0
Common stock, $0.01 par value. 100,000,000 shares authorized; 53,974,492 shares issued	540	540
Additional paid-in-capital	740,792	740,943
Retained earnings	1,040,563	1,021,831
Accumulated other comprehensive loss	(164,492)	(160,934)
Common stock in treasury, at cost, 6,819,477 and 6,864,593 shares, respectively	(175,988)	(176,689)
Total stockholders' equity	1,441,415	1,425,691
Total liabilities and stockholders' equity	$ 13,439,199	$ 13,309,040

XML

Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Securities held to maturity fair value	$ 793,319	$ 814,524
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,500,000	2,500,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	53,974,492	53,974,492
Common stock in treasury, at cost (in shares)	6,819,477	6,864,593

XML

Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest, fee and dividend income
Interest and fees on loans	$ 133,146	$ 100,899
Securities available for sale	7,124	7,616
Securities held to maturity	5,303	5,035
Other	1,364	642
Total interest, fee and dividend income	146,937	114,192
Interest expense
Deposits	44,339	11,144
Short-term borrowings	3,421	4,919
Long-term debt	290	47
Subordinated debt	1,800	1,334
Junior subordinated debt	1,913	1,682
Total interest expense	51,763	19,126
Net interest income	95,174	95,066
Provision for loan losses	5,579	3,909
Net interest income after provision for loan losses	89,595	91,157
Noninterest income
Service charges on deposit accounts	4,117	3,548
Card services income	5,195	4,845
Retirement plan administration fees	14,287	11,462
Wealth management	9,697	8,087
Insurance services	4,388	3,931
Bank owned life insurance income	2,352	1,878
Net securities gains (losses)	2,183	(4,998)
Other	3,173	2,656
Total noninterest income	45,392	31,409
Noninterest expense
Salaries and employee benefits	55,704	48,155
Technology and data services	9,750	9,007
Occupancy	8,098	7,220
Professional fees and outside services	4,853	4,178
Office supplies and postage	1,865	1,628
FDIC assessment	1,735	1,396
Advertising	812	649
Amortization of intangible assets	2,168	536
Loan collection and other real estate owned, net	553	855
Acquisition expenses	0	618
Other	6,235	5,080
Total noninterest expense	91,773	79,322
Income before income tax expense	43,214	43,244
Income tax expense	9,391	9,586
Net income	$ 33,823	$ 33,658
Earnings per share
Basic (in dollars per share)	$ 0.72	$ 0.78
Diluted (in dollars per share)	$ 0.71	$ 0.78

XML

Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract]
Net income	$ 33,823	$ 33,658
Securities available for sale:
Unrealized net holding (losses) gains arising during the period, gross	(5,292)	15,725
Tax effect	1,323	(3,931)
Unrealized net holding (losses) gains arising during the period, net	(3,969)	11,794
Reclassification adjustment for net losses in net income, gross	0	5,000
Tax effect	0	(1,250)
Reclassification adjustment for net losses in net income, net	0	3,750
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross	96	114
Tax effect	(24)	(28)
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net	72	86
Total securities available for sale, net	(3,897)	15,630
Pension and other benefits:
Amortization of prior service cost and actuarial losses, gross	452	649
Tax effect	(113)	(163)
Amortization of prior service cost and actuarial losses, net	339	486
Total pension and other benefits, net	339	486
Total other comprehensive (loss) income	(3,558)	16,116
Comprehensive income	$ 30,265	$ 49,774

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Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in-Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Common Stock in Treasury [Member]	Total	Cumulative Effect Adjustment for ASU Implementation [Member] Common Stock [Member]	Cumulative Effect Adjustment for ASU Implementation [Member] Additional Paid-in-Capital [Member]	Cumulative Effect Adjustment for ASU Implementation [Member] Retained Earnings [Member]	Cumulative Effect Adjustment for ASU Implementation [Member] Accumulated Other Comprehensive (Loss) Income [Member]	Cumulative Effect Adjustment for ASU Implementation [Member] Common Stock in Treasury [Member]	Cumulative Effect Adjustment for ASU Implementation [Member]
Balance at Dec. 31, 2022	$ 497	$ 577,853	$ 958,433	$ (190,034)	$ (173,195)	$ 1,173,554
Balance (ASU 2022-02 [Member]) at Dec. 31, 2022							$ 0	$ 0	$ 502	$ 0	$ 0	$ 502
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	33,658	0	0	33,658
Cash dividends	0	0	(12,871)	0	0	(12,871)
Net issuance of shares to employee and other stock plans	0	(2,366)	0	0	601	(1,765)
Stock-based compensation	0	2,465	0	0	0	2,465
Other comprehensive (loss) income	0	0	0	16,116	0	16,116
Balance at Mar. 31, 2023	497	577,952	979,722	(173,918)	(172,594)	1,211,659
Balance at Dec. 31, 2023	540	740,943	1,021,831	(160,934)	(176,689)	1,425,691
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	33,823	0	0	33,823
Cash dividends	0	0	(15,091)	0	0	(15,091)
Purchase of treasury shares	0	0	0	0	(63)	(63)
Net issuance of shares to employee and other stock plans	0	(2,435)	0	0	764	(1,671)
Stock-based compensation	0	2,284	0	0	0	2,284
Other comprehensive (loss) income	0	0	0	(3,558)	0	(3,558)
Balance at Mar. 31, 2024	$ 540	$ 740,792	$ 1,040,563	$ (164,492)	$ (175,988)	$ 1,441,415

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Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Changes in Stockholders' Equity (unaudited) [Abstract]
Cash dividends - per share (in dollars per share)	$ 0.32	$ 0.3
Purchase of treasury shares (in shares)	1,900
Net issuance of shares to employee benefit plans and other stock plans (in shares)	47,016	46,509

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income	$ 33,823	$ 33,658
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	5,579	3,909
Depreciation and amortization of premises and equipment	2,855	2,579
Net amortization on securities	657	690
Amortization of intangible assets	2,168	536
Amortization of operating lease right-of-use assets	1,867	1,647
Excess tax benefit on stock-based compensation	(116)	(231)
Stock-based compensation expense	2,284	2,465
Bank owned life insurance income	(2,352)	(1,878)
Amortization of subordinated debt issuance costs	109	109
Proceeds from sale of loans held for sale	27,075	1,571
Originations of loans held for sale	(26,662)	(1,418)
Net gain on sale of loans held for sale	(40)	(16)
Net securities (gains) losses	(2,183)	4,998
Net change in other assets and other liabilities	(8,319)	(26,772)
Net cash provided by operating activities	36,745	21,847
Investing activities
Net cash used in acquisitions	(743)	(129)
Securities available for sale:
Proceeds from maturities, calls and principal paydowns	26,542	30,683
Proceeds from sales	2,284	0
Purchases	(19,676)	0
Securities held to maturity:
Proceeds from maturities, calls and principal paydowns	21,143	17,870
Purchases	(7,071)	(5,494)
Equity securities:
Purchases	(7)	0
Other:
Net increase in loans	(42,308)	(118,242)
Proceeds from Federal Home Loan Bank stock redemption	26,465	38,589
Purchases of Federal Home Loan Bank stock	(17,940)	(39,218)
Proceeds from settlement of bank owned life insurance	608	1,773
Purchases of premises and equipment, net	(2,425)	(1,392)
Net cash used in investing activities	(13,128)	(75,560)
Financing activities
Net increase in deposits	226,295	185,272
Net decrease in short-term borrowings	(119,517)	(109,786)
Proceeds from long-term debt	0	25,000
Repayments of long-term debt	(37)	(25)
Cash paid by employer for tax-withholding on stock issuance	(1,301)	(1,432)
Purchase of treasury stock	(63)	0
Cash dividends	(15,091)	(12,871)
Net cash provided by financing activities	90,286	86,158
Net increase in cash and cash equivalents	113,903	32,445
Cash and cash equivalents at beginning of period	205,189	197,350
Cash and cash equivalents at end of period	319,092	229,795
Cash paid during the period for:
Interest expense	55,313	17,066
Income taxes paid, net of refund	3,500	15,072
Acquisitions:
Fair value of assets acquired	$ 693	$ 150

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Description of Business

3 Months Ended

Mar. 31, 2024

Description of Business [Abstract]

Description of Business

1. Description of Business

NBT Bancorp Inc. is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of NBT Bancorp Inc. consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The principal sources of revenue for NBT Bancorp Inc. are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as (the “Company”).

The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central and northwestern Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods in accordance with GAAP and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.

Estimates associated with the allowance for credit losses, pension accounting, provision for income taxes, fair values of financial instruments and status of contingencies are particularly susceptible to material change in the near term.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2024

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were redundant, duplicative, overlapping, outdated, or superseded. The new guidance is intended to align GAAP requirements with those of the SEC. The ASU will become effective on the earlier of the date on which the SEC removes its disclosure requirements for the related disclosure or June 30, 2027. Early adoption is not permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosure requirements by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, that addresses requests for improved income tax disclosures from investors, lenders, creditors and other allocators of capital that use the financial statements to make capital allocation decisions. The ASU requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better assess how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows. The ASU 2023-09 improves the transparency of income tax disclosures. The amendments in this ASU are effective for the Company on January 1, 2025 and should be applied on a prospective basis. Retrospective application and early adoption are permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

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Securities

3 Months Ended

Mar. 31, 2024

Securities [Abstract]

Securities

4. Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
U.S. treasury	$	133,442	$	-	$	(8,759	)	$	124,683
Federal agency		248,375		-		(35,071	)		213,304
State & municipal		96,054		1		(10,022	)		86,033
Mortgage-backed:
Government-sponsored enterprises		387,479		3		(45,461	)		342,021
U.S. government agency securities		71,036		10		(7,520	)		63,526
Collateralized mortgage obligations:
Government-sponsored enterprises		452,853		49		(50,135	)		402,767
U.S. government agency securities		170,293		-		(26,034	)		144,259
Corporate		48,451		-		(6,573	)		41,878
Total AFS securities	$	1,607,983	$	63	$	(189,575	)	$	1,418,471
As of December 31, 2023
U.S. treasury	$	133,302	$	-	$	(8,278	)	$	125,024
Federal agency		248,384		-		(33,644	)		214,740
State & municipal		96,251		11		(9,956	)		86,306
Mortgage-backed:
Government-sponsored enterprises		399,532		7		(44,264	)		355,275
U.S. government agency securities		74,281		14		(7,302	)		66,993
Collateralized mortgage obligations:
Government-sponsored enterprises		452,715		15		(48,257	)		404,473
U.S. government agency securities		162,171		-		(25,100	)		137,071
Corporate		48,442		-		(7,466	)		40,976
Total AFS securities	$	1,615,078	$	47	$	(184,267	)	$	1,430,858

There was no allowance for credit losses on AFS securities as of March 31, 2024 and December 31, 2023.

During the three months ended March 31, 2023, the Company incurred a $5.0 million loss on the write-off of an AFS corporate debt security from a subordinated debt investment of a financial institution that failed. The $5.0 million loss was reclassified out of AOCI and into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024 the Company sold the previously written-off security and recognized a gain of $2.3 million into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024, there were no gains or losses reclassified out of AOCI and into earnings.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
Federal agency	$	100,000	$	-	$	(18,440	)	$	81,560
Mortgage-backed:
Government-sponsored enterprises		224,344		-		(34,187	)		190,157
U.S. government agency securities		16,742		2		(736	)		16,008
Collateralized mortgage obligations:
Government-sponsored enterprises		182,813		-		(13,466	)		169,347
U.S. government agency securities		63,137		-		(11,206	)		51,931
State & municipal		303,827		99		(19,610	)		284,316
Total HTM securities	$	890,863	$	101	$	(97,645	)	$	793,319
As of December 31, 2023
Federal agency	$	100,000	$	-	$	(17,784	)	$	82,216
Mortgage-backed:
Government-sponsored enterprises		228,720		-		(31,613	)		197,107
U.S. government agency securities		17,086		3		(566	)		16,523
Collateralized mortgage obligations:
Government-sponsored enterprises		187,457		57		(12,021	)		175,493
U.S. government agency securities		63,878		-		(10,908	)		52,970
State & municipal		308,126		211		(18,122	)		290,215
Total HTM securities	$	905,267	$	271	$	(91,014	)	$	814,524

At March 31, 2024 and December 31, 2023, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities. 

The Company recorded no gains from calls on HTM securities for the three months ended March 31, 2024 and 2023.

AFS and HTM securities with amortized costs totaling $1.99 billion at March 31, 2024 and $2.03 billion at December 31, 2023 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2024 and December 31, 2023, AFS and HTM securities with an amortized cost of $159.3 million and $177.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table sets forth information with regard to gains and (losses) on equity securities:

	Three Months Ended March 31,
(In thousands)	2024				2023
Net (losses) and gains recognized on equity securities		$	(101	)		$	2
Less: Net (losses) and gains recognized on equity securities sold during the period			-				-
Unrealized (losses) and gains recognized on equity securities still held		$	(101	)		$	2

As of March 31, 2024 and December 31, 2023, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of March 31, 2024 and 2023. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three months ended March 31, 2024 and 2023.

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2024:

(In thousands)	Amortized Cost		Estimated Fair Value
AFS debt securities:
Within one year	$	50,294	$	49,553
From one to five years		567,513		508,211
From five to ten years		314,839		277,648
After ten years		675,337		583,059
Total AFS debt securities	$	1,607,983	$	1,418,471
HTM debt securities:
Within one year	$	98,660	$	98,460
From one to five years		125,141		119,411
From five to ten years		242,973		210,783
After ten years		424,089		364,665
Total HTM debt securities	$	890,863	$	793,319

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at March 31, 2024 and December 31, 2023.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities had been in a continuous unrealized loss position:

	Less Than 12 Months							12 Months or Longer							Total
(In thousands)	Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions
As of March 31, 2024
AFS securities:
U.S. treasury	$	-	$	-			-	$	124,683	$	(8,759	)		8	$	124,683	$	(8,759	)		8
Federal agency		-		-			-		213,304		(35,071	)		16		213,304		(35,071	)		16
State & municipal		-		-			-		85,266		(10,022	)		66		85,266		(10,022	)		66
Mortgage-backed		136		(1	)		9		404,618		(52,980	)		158		404,754		(52,981	)		167
Collateralized mortgage obligations		11,033		(59	)		2		523,989		(76,110	)		120		535,022		(76,169	)		122
Corporate		1,459		(2	)		1		40,419		(6,571	)		14		41,878		(6,573	)		15
Total securities with unrealized losses	$	12,628	$	(62	)		12	$	1,392,279	$	(189,513	)		382	$	1,404,907	$	(189,575	)		394
HTM securities:
Federal agency	$	-	$	-			-	$	81,560	$	(18,440	)		4	$	81,560	$	(18,440	)		4
Mortgage-backed		11,905		(489	)		1		194,181		(34,434	)		33		206,086		(34,923	)		34
Collateralized mortgage obligation		8,189		(58	)		1		213,088		(24,614	)		52		221,277		(24,672	)		53
State & municipal		4,423		(13	)		4		181,355		(19,597	)		205		185,778		(19,610	)		209
Total securities with unrealized losses	$	24,517	$	(560	)		6	$	670,184	$	(97,085	)		294	$	694,701	$	(97,645	)		300
As of December 31, 2023
AFS securities:
U.S. treasury	$	-	$	-			-	$	125,024	$	(8,278	)		8	$	125,024	$	(8,278	)		8
Federal agency		-		-			-		214,740		(33,644	)		16		214,740		(33,644	)		16
State & municipal		-		-			-		85,528		(9,956	)		66		85,528		(9,956	)		66
Mortgage-backed		53		(1	)		7		421,259		(51,565	)		156		421,312		(51,566	)		163
Collateralized mortgage obligations		1,333		(6	)		2		536,678		(73,351	)		118		538,011		(73,357	)		120
Corporate		1,379		(75	)		1		39,597		(7,391	)		14		40,976		(7,466	)		15
Total securities with unrealized losses	$	2,765	$	(82	)		10	$	1,422,826	$	(184,185	)		378	$	1,425,591	$	(184,267	)		388
HTM securities:
Federal agency	$	-	$	-			-	$	82,216	$	(17,784	)		4	$	82,216	$	(17,784	)		4
Mortgage-backed		12,221		(365	)		1		201,320		(31,814	)		33		213,541		(32,179	)		34
Collateralized mortgage obligations		-		-			-		219,820		(22,929	)		54		219,820		(22,929	)		54
State & municipal		14,422		(127	)		21		171,904		(17,995	)		189		186,326		(18,122	)		210
Total securities with unrealized losses	$	26,643	$	(492	)		22	$	675,260	$	(90,522	)		280	$	701,903	$	(91,014	)		302

The Company does not believe the AFS securities that were in an unrealized loss position as of March 31, 2024 and December 31, 2023, which consisted of 394 and 388 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of March 31, 2024 and December 31, 2023, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude AIR from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $3.9 million at March 31, 2024 and December 31, 2023, and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

None of the Bank’s HTM debt securities were past due or on nonaccrual status as of March 31, 2024 and December 31, 2023. There was no accrued interest reversed against interest income for the three months ended March 31, 2024 or the year ended December 31, 2023 as all securities remained in accrual status. In addition, there were no collateral-dependent HTM debt securities as of March 31, 2024 and December 31, 2023. There was no allowance for credit losses on HTM securities as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, 66% of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2024 and December 31, 2023. The remaining HTM debt securities at March 31, 2024 and December 31, 2023 were comprised of state and municipal obligations generally with bond ratings of A to AAA. Utilizing the CECL methodology, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of March 31, 2024 and December 31, 2023. AIR on HTM debt securities totaled $5.1 million at March 31, 2024 and $4.7 million at December 31, 2023 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

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Loans

3 Months Ended

Mar. 31, 2024

Loans [Abstract]

Loans

5. Loans

A summary of loans, net of deferred fees and origination costs, by category is as follows:

(In thousands)	March 31, 2024		December 31, 2023
Commercial & industrial	$	1,353,446	$	1,354,248
Commercial real estate		3,646,739		3,626,910
Residential real estate		2,133,289		2,125,804
Home equity		328,673		337,214
Indirect auto		1,190,734		1,130,132
Residential solar		896,147		917,755
Other consumer		139,049		158,650
Total loans	$	9,688,077	$	9,650,713

Included in the above loans are net deferred loan origination (fees) costs totaling $89.2 million and $98.2 million at March 31, 2024 and December 31, 2023, respectively.

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Allowance for Credit Losses and Credit Quality of Loans

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses and Credit Quality of Loans [Abstract]

Allowance for Credit Losses and Credit Quality of Loans

6. Allowance for Credit Losses and Credit Quality of Loans

The allowance for credit losses totaled $115.3 million at March 31, 2024, compared to $114.4 million at December 31, 2023. The allowance for credit losses as a percentage of loans was 1.19% at March 31, 2024 and December 31, 2023.

The Company’s January 1, 2023 adoption of ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures resulted in an insignificant change to its methodology for estimating the allowance for credit losses on TDRs. The ASU eliminated the guidance on TDRs and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The decrease in allowance for credit loss on TDR loans relating to adoption of ASU 2022-02 was $0.6 million.

The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside and downside economic forecast in measuring the allowance.

The quantitative model as of March 31, 2024 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At March 31, 2024, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflects an economic environment where the unemployment rate increases slightly from 3.8% to 4.1% during the forecast period. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the second quarter of 2024 at approximately 3.3% and decrease to 2.8% before increasing to 3.4% by the end of the forecast period. Key assumptions in the baseline economic outlook included the Federal Reserve cutting rates with three 25 basis point cuts at the June, September, and December meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, national unemployment rises from 3.8% in the first quarter of 2024 to a peak of 7.7% in the second quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2024. Additional adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation, and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth, and policy exceptions was also conducted.

The quantitative model as of December 31, 2023 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At December 31, 2023, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflected an unemployment rate environment starting at 3.8% and increasing slightly during the forecast period to 4.1%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the first quarter of 2024 at approximately 3.7% before decreasing to a low of 2.9% in the third quarter of 2024 and then increasing to 3.8% by the end of the forecast period. Other utilized economic variable forecasts are mixed compared to the prior year, with retail sales improving, business output mixed and housing starts down. Key assumptions in the baseline economic outlook included currently being in a full employment economy, continued tapering of the Federal Reserve balance sheet and the FOMC beginning to cut rates in the second quarter of 2024. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, northeast unemployment increases to a peak of 7.0% in the first quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of December 31, 2023. Additional qualitative adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth and policy exceptions was also conducted.

There were no loans purchased with credit deterioration during the three months ended March 31, 2024. There were $219.5 million of PCD loans acquired from Salisbury during the year ended December 31, 2023, which resulted in an allowance for credit losses at acquisition of $5.8 million. During the three months ended March 31, 2024, the Company purchased $0.4 million of residential loans at a 7.0% premium with a $4 thousand allowance for credit losses recorded for these loans. During 2023, the Company purchased $3.8 million of residential loans at a 7.0% premium with a $31 thousand allowance for credit losses recorded for these loans.

The Company made a policy election to report AIR in the other assets line item on the consolidated balance sheets. AIR on loans totaled $34.4 million at March 31, 2024 and $34.1 million at December 31, 2023 and there was no estimated allowance for credit losses related to AIR as of March 31, 2024 and December 31, 2023 as it is excluded from amortized cost.

The following tables present the activity in the allowance for credit losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential			Total
Balance as of December 31, 2023	$	45,903		$	46,427		$	22,070		$	114,400
Charge-offs		(985	)		(5,581	)		(114	)		(6,680	)
Recoveries		198			1,651			152			2,001
Provision		(644	)		4,922			1,301			5,579
Ending balance as of March 31, 2024	$	44,472		$	47,419		$	23,409		$	115,300
Balance as of January 1, 2023 (after adoption of ASC 2022-02)	$	34,662		$	50,951		$	14,539		$	100,152
Charge-offs		(169	)		(5,342	)		(339	)		(5,850	)
Recoveries		541			1,377			121			2,039
Provision		1,006			1,834			1,069			3,909
Ending balance as of March 31, 2023	$	36,040		$	48,820		$	15,390		$	100,250

The allowance for credit losses as of March 31, 2024 increased compared to the allowance estimates as of December 31, 2023 primarily due to the slowing of prepayment speed assumptions partly offset by the decline in consumer loans with higher allowance levels and a decline in the PCD allowance as purchased loan balances decreased. The increase in the allowance for credit losses from March 31, 2023 to March 31, 2024 was primarily due to the recording of $14.5 million of allowance for acquired Salisbury loans as of the acquisition date, which included both the $8.8 million of non-PCD allowance recognized through the provision for loan losses and the $5.8 million of PCD allowance reclassified from loans.

Individually Evaluated Loans

The threshold for evaluating classified, commercial and commercial real estate loans risk graded substandard or doubtful, and nonperforming loans specifically evaluated for individual credit loss is $1.0 million. As of March 31, 2024, there were two relationships identified to be evaluated for loss on an individual basis which had an amortized cost basis of $17.1 million, with no allowance for credit loss. As of December 31, 2023, the same two relationships were identified to be evaluated for loss on an individual basis which had an amortized cost basis of $17.3 million, with no allowance for credit loss. The decrease in the amortized cost basis on an individual basis from December 31, 2023 to March 31, 2024 was primarily due to principal payments received during the first quarter of 2024. As of March 31, 2024 and December 31, 2023, there were $17.1 million and $17.3 million, respectively, of loans in nonaccrual that were specifically evaluated for individual expected credit loss without an allowance for credit losses.

The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of March 31, 2024
Commercial loans:
C&I	$	1,711	$	750	$	-	$	2,461	$	3,079	$	1,398,831	$	1,404,371
CRE		1,929		64		-		1,993		18,743		3,424,810		3,445,546
Total commercial loans	$	3,640	$	814	$	-	$	4,454	$	21,822	$	4,823,641	$	4,849,917
Consumer loans:
Auto	$	10,376	$	1,676	$	1,045	$	13,097	$	2,274	$	1,142,702	$	1,158,073
Residential solar		3,940		1,362		446		5,748		125		890,274		896,147
Other consumer		2,054		1,158		882		4,094		299		146,372		150,765
Total consumer loans	$	16,370	$	4,196	$	2,373	$	22,939	$	2,698	$	2,179,348	$	2,204,985
Residential	$	3,799	$	858	$	227	$	4,884	$	10,669	$	2,617,622	$	2,633,175
Total loans	$	23,809	$	5,868	$	2,600	$	32,277	$	35,189	$	9,620,611	$	9,688,077

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2023
Commercial loans:
C&I	$	414	$	33	$	1	$	448	$	3,441	$	1,393,616	$	1,397,505
CRE		803		835		-		1,638		18,126		3,413,984		3,433,748
Total commercial loans	$	1,217	$	868	$	1	$	2,086	$	21,567	$	4,807,600	$	4,831,253
Consumer loans:
Auto	$	10,115	$	2,011	$	1,067	$	13,193	$	2,106	$	1,084,143	$	1,099,442
Residential solar		3,074		1,301		915		5,290		245		912,220		917,755
Other consumer		2,343		1,811		1,124		5,278		215		164,867		170,360
Total consumer loans	$	15,532	$	5,123	$	3,106	$	23,761	$	2,566	$	2,161,230	$	2,187,557
Residential	$	3,836	$	399	$	554	$	4,789	$	10,080	$	2,617,034	$	2,631,903
Total loans	$	20,585	$	6,390	$	3,661	$	30,636	$	34,213	$	9,585,864	$	9,650,713

Credit Quality Indicators

The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans.

Commercial Grading System

For C&I and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass.

Doubtful

A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.

Substandard

Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.

Special Mention

Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.

Pass

Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including Paycheck Protection Program loans.

Consumer and Residential Grading System

Consumer and Residential loans are graded as either Nonperforming or Performing.

Nonperforming

Nonperforming loans are loans that are (1) over 90 days past due and interest is still accruing or (2) on nonaccrual status.

Performing

All loans not meeting any of the above criteria are considered Performing.

The following tables illustrate the Company’s credit quality by loan class by vintage and includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the three months ended March 31, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations. Included in other consumer gross charge-offs for the year ended December 31, 2023, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.8 million in overdrawn deposit accounts reported as 2023 originations.

(In thousands)	2024		2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
C&I
By internally assigned grade:
Pass	$	60,820	$	214,985		$	243,619		$	231,577		$	146,409		$	129,310		$	318,078	$	2,585	$	1,347,383
Special mention		-		1,795			2,802			378			3,845			1,812			15,946		251		26,829
Substandard		-		2,934			3,154			1,885			289			6,845			14,880		127		30,114
Doubtful		-		21			1			19			-			4			-		-		45
Total C&I	$	60,820	$	219,735		$	249,576		$	233,859		$	150,543		$	137,971		$	348,904	$	2,963	$	1,404,371
Current-period gross charge-offs	$	-	$	(9	)	$	(900	)	$	-		$	-		$	(76	)	$	-	$	-	$	(985	)
CRE
By internally assigned grade:
Pass	$	81,048	$	362,660		$	492,661		$	546,787		$	449,533		$	1,013,118		$	308,977	$	37,243	$	3,292,027
Special mention		-		3,602			5,971			7,842			3,875			28,841			3,547		-		53,678
Substandard		-		-			726			17,961			1,132			61,499			1,542		16,981		99,841
Total CRE	$	81,048	$	366,262		$	499,358		$	572,590		$	454,540		$	1,103,458		$	314,066	$	54,224	$	3,445,546
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	-		$	-	$	-	$	-
Auto
By payment activity:
Performing	$	175,451	$	430,001		$	331,202		$	138,915		$	36,140		$	43,045		$	-	$	-	$	1,154,754
Nonperforming		29		1,014			1,171			724			94			287			-		-		3,319
Total auto	$	175,480	$	431,015		$	332,373		$	139,639		$	36,234		$	43,332		$	-	$	-	$	1,158,073
Current-period gross charge-offs	$	-	$	(274	)	$	(493	)	$	(226	)	$	(12	)	$	(122	)	$	-	$	-	$	(1,127	)
Residential solar
By payment activity:
Performing	$	1,365	$	149,789		$	422,422		$	176,158		$	63,222		$	82,620		$	-	$	-	$	895,576
Nonperforming		-		-			432			76			-			63			-		-		571
Total residential solar	$	1,365	$	149,789		$	422,854		$	176,234		$	63,222		$	82,683		$	-	$	-	$	896,147
Current-period gross charge-offs	$	-	$	(53	)	$	(910	)	$	(136	)	$	-		$	(196	)	$	-	$	-	$	(1,295	)
Other consumer
By payment activity:
Performing	$	5,600	$	10,559		$	22,720		$	47,947		$	18,029		$	25,681		$	19,015	$	33	$	149,584
Nonperforming		-		5			184			650			39			295			1		7		1,181
Total other consumer	$	5,600	$	10,564		$	22,904		$	48,597		$	18,068		$	25,976		$	19,016	$	40	$	150,765
Current-period gross charge-offs	$	-	$	(250	)	$	(811	)	$	(1,453	)	$	(364	)	$	(281	)	$	-	$	-	$	(3,159	)
Residential
By payment activity:
Performing	$	39,693	$	258,154		$	336,357		$	438,007		$	273,451		$	1,006,816		$	255,582	$	14,219	$	2,622,279
Nonperforming		-		626			825			1,605			272			7,568			-		-		10,896
Total residential	$	39,693	$	258,780		$	337,182		$	439,612		$	273,723		$	1,014,384		$	255,582	$	14,219	$	2,633,175
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	(114	)	$	-	$	-	$	(114	)
Total loans	$	364,006	$	1,436,145		$	1,864,247		$	1,610,531		$	996,330		$	2,407,804		$	937,568	$	71,446	$	9,688,077
Current-period gross charge-offs	$	-	$	(586	)	$	(3,114	)	$	(1,815	)	$	(376	)	$	(789	)	$	-	$	-	$	(6,680	)

(In thousands)	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2023
C&I
By internally assigned grade:
Pass	$	229,249		$	270,796		$	241,993		$	158,051		$	74,469		$	63,826		$	299,248	$	2,923	$	1,340,555
Special mention		420			1,672			277			3,524			87			1,854			19,489		-		27,323
Substandard		1,496			2,461			1,609			282			2,266			5,632			14,266		1,607		29,619
Doubtful		-			1			2			-			4			1			-		-		8
Total C&I	$	231,165		$	274,930		$	243,881		$	161,857		$	76,826		$	71,313		$	333,003	$	4,530	$	1,397,505
Current-period gross charge-offs	$	(24	)	$	(3,021	)	$	(5	)	$	(86	)	$	-		$	(600	)	$	-	$	-	$	(3,736	)
CRE
By internally assigned grade:
Pass	$	353,161		$	518,201		$	561,897		$	452,110		$	327,804		$	739,189		$	294,039	$	33,705	$	3,280,106
Special mention		3,577			4,472			10,711			7,055			9,967			39,460			2,970		-		78,212
Substandard		370			731			21,807			1,146			2,996			37,418			10,962		-		75,430
Total CRE	$	357,108		$	523,404		$	594,415		$	460,311		$	340,767		$	816,067		$	307,971	$	33,705	$	3,433,748
Current-period gross charge-offs	$	-		$	-		$	-		$	-		$	(114	)	$	(304	)	$	-	$	-	$	(418	)
Auto
By payment activity:
Performing	$	474,369		$	363,516		$	157,251		$	42,644		$	45,406		$	13,071		$	12	$	-	$	1,096,269
Nonperforming		532			1,241			830			190			306			74			-		-		3,173
Total auto	$	474,901		$	364,757		$	158,081		$	42,834		$	45,712		$	13,145		$	12	$	-	$	1,099,442
Current-period gross charge-offs	$	(102	)	$	(1,183	)	$	(1,066	)	$	(340	)	$	(301	)	$	(295	)	$	-	$	-	$	(3,287	)
Residential solar
By payment activity:
Performing	$	155,425		$	430,855		$	178,839		$	65,382		$	46,554		$	39,540		$	-	$	-	$	916,595
Nonperforming		-			837			205			18			47			53			-		-		1,160
Total residential solar	$	155,425		$	431,692		$	179,044		$	65,400		$	46,601		$	39,593		$	-	$	-	$	917,755
Current-period gross charge-offs	$	(150	)	$	(1,930	)	$	(923	)	$	(45	)	$	(558	)	$	(345	)	$	-	$	-	$	(3,951	)
Other consumer
By payment activity:
Performing	$	13,089		$	27,394		$	57,876		$	21,087		$	14,548		$	15,964		$	19,042	$	21	$	169,021
Nonperforming		-			244			685			144			56			161			4		45		1,339
Total other consumer	$	13,089		$	27,638		$	58,561		$	21,231		$	14,604		$	16,125		$	19,046	$	66	$	170,360
Current-period gross charge-offs	$	(885	)	$	(3,744	)	$	(7,511	)	$	(1,329	)	$	(832	)	$	(568	)	$	-	$	-	$	(14,869	)
Residential
By payment activity:
Performing	$	212,799		$	366,860		$	453,206		$	267,845		$	167,860		$	876,563		$	260,836	$	15,300	$	2,621,269
Nonperforming		134			430			1,121			385			591			7,460			-		513		10,634
Total residential	$	212,933		$	367,290		$	454,327		$	268,230		$	168,451		$	884,023		$	260,836	$	15,813	$	2,631,903
Current-period gross charge-offs	$	-		$	-		$	(81	)	$	(30	)	$	-		$	(406	)	$	-	$	-	$	(517	)
Total loans	$	1,444,621		$	1,989,711		$	1,688,309		$	1,019,863		$	692,961		$	1,840,266		$	920,868	$	54,114	$	9,650,713
Current-period gross charge-offs	$	(1,161	)	$	(9,878	)	$	(9,586	)	$	(1,830	)	$	(1,805	)	$	(2,518	)	$	-	$	-	$	(26,778	)

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The allowance for losses on unfunded commitments totaled $4.7 million as March 31, 2024, compared to $5.1 million as of December 31, 2023.

Loan Modifications to Borrowers Experiencing Financial Difficulties

When the Company modifies a loan with financial difficulty, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a change in scheduled payment amount; or principal forgiveness.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

	Three Months Ended March 31, 2024
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	294		0.011	%
Total	$	294

	Three Months Ended March 31, 2023
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	43		0.002	%
Total	$	43

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

	Three Months Ended March 31, 2024
Loan Type	Term Extension
Residential	Added a weighted-average 7.4 years to the life of loans, which reduced monthly payment amounts for the borrowers.

	Three Months Ended March 31, 2023
Loan Type	Term Extension
Residential	Added a weighted-average 18 years to the life of loans, which reduced monthly payment amounts for the borrowers.

There were no financing receivables that had a payment default during the three months ended March 31, 2024 and 2023, that were modified to borrowers experiencing financial difficulty that were modified in the twelve months prior to that default.

The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months:

	Payment Status (Amortized Cost Basis)
(In thousands)	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due
As of March 31, 2024
Loan Type
Residential	$	863	$	-	$	-	$	29
Total	$	863	$	-	$	-	$	29

XML

Short-Term Borrowings

3 Months Ended

Mar. 31, 2024

Short-Term Borrowings [Abstract]

Short-Term Borrowings

7. Short-Term Borrowings

In addition to the liquidity provided by balance sheet cash flows, liquidity must also be supplemented with additional sources such as credit lines from correspondent banks as well as borrowings from the FHLB and the Federal Reserve Bank. Other funding alternatives may also be appropriate from time to time, including wholesale and retail repurchase agreements and brokered CD accounts.

Information related to short-term borrowings is summarized as follows:

(In thousands)	March 31, 2024		December 31, 2023
Federal funds purchased	$	78,000	$	-
Securities sold under repurchase agreements		86,134		93,651
Other short-term borrowings		103,000		293,000
Total short-term borrowings	$	267,134	$	386,651

See Note 4 for additional information regarding securities pledged as collateral for securities sold under the repurchase agreements.

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Defined Benefit Post-Retirement Plans

3 Months Ended

Mar. 31, 2024

Defined Benefit Post-Retirement Plans [Abstract]

Defined Benefit Post-Retirement Plans

8. Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at March 31, 2024. Benefits paid from the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks, bonds and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. These post-retirement benefits are referred to herein as “Other Benefits.”

Accounting standards require an employer to: (1) recognize the overfunded or underfunded status of defined benefit post-retirement plans, which is measured as the difference between plan assets at fair value and the benefit obligation, as an asset or liability in its balance sheet; (2) recognize changes in that funded status in the year in which the changes occur through comprehensive income; and (3) measure the defined benefit plan assets and obligations as of the date of its year-end balance sheet.

The Company made no voluntary contributions to the Pension Benefits and Other Benefits plans during the three months ended March 31, 2024 and 2023.

The components of expense for Pension Benefits and Other Benefits are set forth below:

	Pension Benefits						Other Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	2024			2023			2024			2023
Components of net periodic (benefit) cost:
Service cost	$	514		$	482		$	1		$	1
Interest cost		1,005			1,010			55			56
Expected return on plan assets		(1,983	)		(1,853	)		-			-
Net amortization		453			670			(1	)		(21	)
Total net periodic (benefit) cost	$	(11	)	$	309		$	55		$	36

The service cost component of net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.

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Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

9. Earnings Per Share

Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).

The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:

	Three Months Ended March 31,
(In thousands, except per share data)	2024		2023
Basic EPS:
Weighted average common shares outstanding		47,148		42,894
Net income available to common stockholders	$	33,823	$	33,658
Basic EPS	$	0.72	$	0.78
Diluted EPS:
Weighted average common shares outstanding		47,148		42,894
Dilutive effect of common stock options and restricted stock		222		232
Weighted average common shares and common share equivalents		47,370		43,126
Net income available to common stockholders	$	33,823	$	33,658
Diluted EPS	$	0.71	$	0.78

There was a nominal number of weighted average stock options outstanding for the three months ended March 31, 2024 and March 31, 2023, that were not considered in the calculation of diluted EPS since the stock options’ exercise prices were greater than the average market price during these periods.

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Reclassification Adjustments Out of Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract]

Reclassification Adjustments Out of Other Comprehensive Income (Loss)

10. Reclassification Adjustments Out of Other Comprehensive Income (Loss)

The following table summarizes the reclassification adjustments out of AOCI:

Detail About AOCI Components	Amount Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended
(In thousands)	March 31, 2024			March 31, 2023
AFS securities:
Losses on AFS securities	$	-		$	5,000		Net securities (gains) losses
Amortization of unrealized gains related to securities transfer		96			114		Interest income
Tax effect	$	(24	)	$	(1,278	)	Income tax (benefit)
Net of tax	$	72		$	3,836
Pension and other benefits:
Amortization of net losses	$	454		$	640		Other noninterest expense
Amortization of prior service costs		(2	)		9		Other noninterest expense
Tax effect	$	(113	)	$	(163	)	Income tax (benefit)
Net of tax	$	339		$	486
Total reclassifications, net of tax	$	411		$	4,322

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

11. Derivative Instruments and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Generally, the Company may use derivative financial instruments to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments. Currently, the Company has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps are considered derivatives, but are not designated in hedging relationships. These instruments have interest rate and credit risk associated with them. To mitigate the interest rate risk, the Company enters into offsetting interest rate swaps with counterparties. The counterparty swaps are also considered derivatives and are also not designated in hedging relationships. Interest rate swaps are recorded within other assets or other liabilities on the consolidated balance sheets at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statements of income.

The Company is subject to over-the-counter derivative clearing requirements, which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the CME. The CME requires the Company to post initial and variation margin payments to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts. A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company’s financial statements are not equal and offsetting.

In 2017, the U.K. Financial Conduct Authority announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021. In 2022, the Federal Reserve adopted a final rule implementing the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that replaced LIBOR in certain financial contracts after June 30, 2023. In 2023, the Company transitioned all of its financial instruments to an alternative benchmark rate.

As of March 31, 2024 and December 31, 2023, the Company had thirteen and twelve risk participation agreements, respectively, with financial institution counterparties for interest rate swaps related to participated loans. Risk participation agreements provide credit protection to the financial institution that originated the swap transaction should the borrower fail to perform on its obligation. The Company enters into both risk participation agreements in which it purchases credit protection from other financial institutions and those in which it provides credit protection to other financial institutions.

The following table summarizes the derivatives outstanding:

(In thousands)	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
As of March 31, 2024
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,330,997	Other assets	$	114,205	$	1,330,997	Other liabilities	$	114,101
Risk participation agreements		71,511	Other assets		84		15,571	Other liabilities		3
Total derivatives not designated as hedging instruments				$	114,289				$	114,104
Netting adjustments(1)					24,321					-
Net derivatives in the balance sheet				$	89,968				$	114,104
Derivatives not offset on the balance sheet				$	1,924				$	1,924
Cash collateral(2)					-					-
Net derivative amounts				$	88,044				$	112,180
As of December 31, 2023
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,303,711	Other assets	$	95,972	$	1,303,711	Other liabilities	$	95,869
Risk participation agreements		62,112	Other assets		19		16,146	Other liabilities		6
Total derivatives not designated as hedging instruments				$	95,991				$	95,875
Netting adjustments(1)					20,849					-
Net derivatives in the balance sheet				$	75,142				$	95,875
Derivatives not offset on the balance sheet				$	2,930				$	2,930
Cash collateral(2)					-					-
Net derivative amounts				$	72,212				$	92,945

(1) Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

(2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:

	Three Months Ended March 31,
(In thousands)	2024		2023
Derivatives not designated as hedging instruments:
Increase in other income	$	75	$	7

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Fair Value Measurements and Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

Fair Value Measurements and Fair Value of Financial Instruments

12. Fair Value Measurements and Fair Value of Financial Instruments

GAAP states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such instruments.

The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or quote from alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used by its third-party providers in pricing the securities.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in financial ratios or cash flows.

The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

(In thousands)	Level 1		Level 2		Level 3		March 31, 2024
Assets:
AFS securities:
U.S. treasury	$	124,683	$	-	$	-	$	124,683
Federal agency		-		213,304		-		213,304
State & municipal		-		86,033		-		86,033
Mortgage-backed		-		405,547		-		405,547
Collateralized mortgage obligations		-		547,026		-		547,026
Corporate		-		41,878		-		41,878
Total AFS securities	$	124,683	$	1,293,788	$	-	$	1,418,471
Equity securities		38,470		1,000		-		39,470
Derivatives		-		89,968		-		89,968
Total	$	163,153	$	1,384,756	$	-	$	1,547,909
Liabilities:
Derivatives	$	-	$	114,104	$	-	$	114,104
Total	$	-	$	114,104	$	-	$	114,104

(In thousands)	Level 1		Level 2		Level 3		December 31, 2023
Assets:
AFS securities:
U.S. treasury	$	125,024	$	-	$	-	$	125,024
Federal agency		-		214,740		-		214,740
State & municipal		-		86,306		-		86,306
Mortgage-backed		-		422,268		-		422,268
Collateralized mortgage obligations		-		541,544		-		541,544
Corporate		-		40,976		-		40,976
Total AFS securities	$	125,024	$	1,305,834	$	-	$	1,430,858
Equity securities		36,591		1,000		-		37,591
Derivatives		-		75,142		-		75,142
Total	$	161,615	$	1,381,976	$	-	$	1,543,591
Liabilities:
Derivatives	$	-	$	95,875	$	-	$	95,875
Total	$	-	$	95,875	$	-	$	95,875

GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other real estate owned, collateral-dependent loans individually evaluated for expected credit losses and HTM securities. There were no loans individually evaluated for expected credit losses where the amortized cost was adjusted to fair value as of March 31, 2024 and December 31, 2023, respectively. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.

The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings, accrued interest payable and derivatives.

			March 31, 2024				December 31, 2023
(In thousands)	Fair Value Hierarchy		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
HTM securities		2	$	890,863	$	793,319	$	905,267	$	814,524
Net loans		3		9,576,040		9,173,300		9,539,684		9,216,162
Financial liabilities:
Time deposits		2	$	1,368,136	$	1,348,934	$	1,324,709	$	1,285,999
Long-term debt		2		29,759		29,315		29,796		29,416
Subordinated debt		1		120,628		116,563		120,380		113,757
Junior subordinated debt		2		101,196		103,202		101,196		102,337

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.

HTM Securities

The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

Net Loans

Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments, and those expected future cash flows also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance with ASC 820.

Time Deposits

The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Long-Term Debt

The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.

Subordinated Debt

The fair value of subordinated debt has been measured using the observable market price as of the period reported.

Junior Subordinated Debt

The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused lines of credit, standby letters of credit and certain agricultural real estate loans sold to investors with recourse, with the sold portion having a government guarantee that is assignable back to the Company upon repurchase of the loan in the event of default. The Company’s exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, unused lines of credit, standby letters of credit and loans sold with recourse is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness. Commitments to extend credit and unused lines of credit totaled $2.73 billion at March 31, 2024 and $2.25 billion at December 31, 2023.

Since many loan commitments, standby letters of credit and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. The Company does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit.

The Company guarantees the obligations or performance of customers by issuing standby letters of credit to third-parties. These standby letters of credit are generally issued in support of third-party debt, such as corporate debt issuances, industrial revenue bonds and municipal securities. The risk involved in issuing standby letters of credit is essentially the same as the credit risk involved in extending loan facilities to customers and letters of credit are subject to the same credit origination, portfolio maintenance and management procedures in effect to monitor other credit and off-balance sheet products. Typically, these instruments have one year expirations with an option to renew upon annual review; therefore, the total amounts do not necessarily represent future cash requirements. Standby letters of credit totaled $42.0 million at March 31, 2024 and $44.7 million at December 31, 2023. As of March 31, 2024 and December 31, 2023, the fair value of the Company’s standby letters of credit was not significant.

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

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Description of Business (Policies)

3 Months Ended

Mar. 31, 2024

Description of Business [Abstract]

Nature of Operations

NBT Bancorp Inc. is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of NBT Bancorp Inc. consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The principal sources of revenue for NBT Bancorp Inc. are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as (the “Company”).

The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central and northwestern Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods in accordance with GAAP and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.

Estimates associated with the allowance for credit losses, pension accounting, provision for income taxes, fair values of financial instruments and status of contingencies are particularly susceptible to material change in the near term.

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Recent Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2024

Recent Accounting Pronouncements [Abstract]

Accounting Standards Issued Not Yet Adopted

Accounting Standards Issued Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were redundant, duplicative, overlapping, outdated, or superseded. The new guidance is intended to align GAAP requirements with those of the SEC. The ASU will become effective on the earlier of the date on which the SEC removes its disclosure requirements for the related disclosure or June 30, 2027. Early adoption is not permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosure requirements by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, that addresses requests for improved income tax disclosures from investors, lenders, creditors and other allocators of capital that use the financial statements to make capital allocation decisions. The ASU requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better assess how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows. The ASU 2023-09 improves the transparency of income tax disclosures. The amendments in this ASU are effective for the Company on January 1, 2025 and should be applied on a prospective basis. Retrospective application and early adoption are permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

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Securities (Policies)

3 Months Ended

Mar. 31, 2024

Securities [Abstract]

Investment, Policy

The Company does not believe the AFS securities that were in an unrealized loss position as of March 31, 2024 and December 31, 2023, which consisted of 394 and 388 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of March 31, 2024 and December 31, 2023, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude AIR from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $3.9 million at March 31, 2024 and December 31, 2023, and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

None of the Bank’s HTM debt securities were past due or on nonaccrual status as of March 31, 2024 and December 31, 2023. There was no accrued interest reversed against interest income for the three months ended March 31, 2024 or the year ended December 31, 2023 as all securities remained in accrual status. In addition, there were no collateral-dependent HTM debt securities as of March 31, 2024 and December 31, 2023. There was no allowance for credit losses on HTM securities as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, 66% of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2024 and December 31, 2023. The remaining HTM debt securities at March 31, 2024 and December 31, 2023 were comprised of state and municipal obligations generally with bond ratings of A to AAA. Utilizing the CECL methodology, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of March 31, 2024 and December 31, 2023. AIR on HTM debt securities totaled $5.1 million at March 31, 2024 and $4.7 million at December 31, 2023 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

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Allowance for Credit Losses and Credit Quality of Loans (Policies)

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses and Credit Quality of Loans [Abstract]

Allowance for Credit Losses

The allowance for credit losses totaled $115.3 million at March 31, 2024, compared to $114.4 million at December 31, 2023. The allowance for credit losses as a percentage of loans was 1.19% at March 31, 2024 and December 31, 2023.

The Company’s January 1, 2023 adoption of ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures resulted in an insignificant change to its methodology for estimating the allowance for credit losses on TDRs. The ASU eliminated the guidance on TDRs and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The decrease in allowance for credit loss on TDR loans relating to adoption of ASU 2022-02 was $0.6 million.

The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside and downside economic forecast in measuring the allowance.

The quantitative model as of March 31, 2024 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At March 31, 2024, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflects an economic environment where the unemployment rate increases slightly from 3.8% to 4.1% during the forecast period. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the second quarter of 2024 at approximately 3.3% and decrease to 2.8% before increasing to 3.4% by the end of the forecast period. Key assumptions in the baseline economic outlook included the Federal Reserve cutting rates with three 25 basis point cuts at the June, September, and December meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, national unemployment rises from 3.8% in the first quarter of 2024 to a peak of 7.7% in the second quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2024. Additional adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation, and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth, and policy exceptions was also conducted.

The quantitative model as of December 31, 2023 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At December 31, 2023, the weightings were 70% and 30% for the baseline and downside economic forecasts, respectively. The baseline outlook reflected an unemployment rate environment starting at 3.8% and increasing slightly during the forecast period to 4.1%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the first quarter of 2024 at approximately 3.7% before decreasing to a low of 2.9% in the third quarter of 2024 and then increasing to 3.8% by the end of the forecast period. Other utilized economic variable forecasts are mixed compared to the prior year, with retail sales improving, business output mixed and housing starts down. Key assumptions in the baseline economic outlook included currently being in a full employment economy, continued tapering of the Federal Reserve balance sheet and the FOMC beginning to cut rates in the second quarter of 2024. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, northeast unemployment increases to a peak of 7.0% in the first quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of December 31, 2023. Additional qualitative adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth and policy exceptions was also conducted.

The Company made a policy election to report AIR in the other assets line item on the consolidated balance sheets. AIR on loans totaled $34.4 million at March 31, 2024 and $34.1 million at December 31, 2023 and there was no estimated allowance for credit losses related to AIR as of March 31, 2024 and December 31, 2023 as it is excluded from amortized cost.

Credit Quality Indicators

The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans.

Commercial Grading System

For C&I and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass.

Doubtful

A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.

Substandard

Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.

Special Mention

Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.

Pass

Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including Paycheck Protection Program loans.

Consumer and Residential Grading System

Consumer and Residential loans are graded as either Nonperforming or Performing.

Nonperforming

Nonperforming loans are loans that are (1) over 90 days past due and interest is still accruing or (2) on nonaccrual status.

Performing

All loans not meeting any of the above criteria are considered Performing.

Loan Modifications to Borrowers Experiencing Financial Difficulties

Loan Modifications to Borrowers Experiencing Financial Difficulties

When the Company modifies a loan with financial difficulty, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a change in scheduled payment amount; or principal forgiveness.

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Defined Benefit Post-Retirement Plans (Policies)

3 Months Ended

Mar. 31, 2024

Defined Benefit Post-Retirement Plans [Abstract]

Postemployment Benefit Plans, Policy

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at March 31, 2024. Benefits paid from the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks, bonds and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. These post-retirement benefits are referred to herein as “Other Benefits.”

Accounting standards require an employer to: (1) recognize the overfunded or underfunded status of defined benefit post-retirement plans, which is measured as the difference between plan assets at fair value and the benefit obligation, as an asset or liability in its balance sheet; (2) recognize changes in that funded status in the year in which the changes occur through comprehensive income; and (3) measure the defined benefit plan assets and obligations as of the date of its year-end balance sheet.

The Company made no voluntary contributions to the Pension Benefits and Other Benefits plans during the three months ended March 31, 2024 and 2023.

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Earnings Per Share (Policies)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).

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Fair Value Measurements and Fair Value of Financial Instruments (Policies)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments, Policy

GAAP states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such instruments.

The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or quote from alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used by its third-party providers in pricing the securities.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in financial ratios or cash flows.

GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other real estate owned, collateral-dependent loans individually evaluated for expected credit losses and HTM securities. There were no loans individually evaluated for expected credit losses where the amortized cost was adjusted to fair value as of March 31, 2024 and December 31, 2023, respectively. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.

HTM Securities

The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

Net Loans

Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments, and those expected future cash flows also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance with ASC 820.

Time Deposits

The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Long-Term Debt

The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.

Subordinated Debt

The fair value of subordinated debt has been measured using the observable market price as of the period reported.

Junior Subordinated Debt

The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.

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Securities (Tables)

3 Months Ended

Mar. 31, 2024

Securities [Abstract]

Amortized Cost, Estimated Fair Value and Unrealized Gains (Losses) of AFS Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
U.S. treasury	$	133,442	$	-	$	(8,759	)	$	124,683
Federal agency		248,375		-		(35,071	)		213,304
State & municipal		96,054		1		(10,022	)		86,033
Mortgage-backed:
Government-sponsored enterprises		387,479		3		(45,461	)		342,021
U.S. government agency securities		71,036		10		(7,520	)		63,526
Collateralized mortgage obligations:
Government-sponsored enterprises		452,853		49		(50,135	)		402,767
U.S. government agency securities		170,293		-		(26,034	)		144,259
Corporate		48,451		-		(6,573	)		41,878
Total AFS securities	$	1,607,983	$	63	$	(189,575	)	$	1,418,471
As of December 31, 2023
U.S. treasury	$	133,302	$	-	$	(8,278	)	$	125,024
Federal agency		248,384		-		(33,644	)		214,740
State & municipal		96,251		11		(9,956	)		86,306
Mortgage-backed:
Government-sponsored enterprises		399,532		7		(44,264	)		355,275
U.S. government agency securities		74,281		14		(7,302	)		66,993
Collateralized mortgage obligations:
Government-sponsored enterprises		452,715		15		(48,257	)		404,473
U.S. government agency securities		162,171		-		(25,100	)		137,071
Corporate		48,442		-		(7,466	)		40,976
Total AFS securities	$	1,615,078	$	47	$	(184,267	)	$	1,430,858

Amortized Cost, Estimated Fair Value and Unrealized Gains (Losses) of HTM Securities

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of March 31, 2024
Federal agency	$	100,000	$	-	$	(18,440	)	$	81,560
Mortgage-backed:
Government-sponsored enterprises		224,344		-		(34,187	)		190,157
U.S. government agency securities		16,742		2		(736	)		16,008
Collateralized mortgage obligations:
Government-sponsored enterprises		182,813		-		(13,466	)		169,347
U.S. government agency securities		63,137		-		(11,206	)		51,931
State & municipal		303,827		99		(19,610	)		284,316
Total HTM securities	$	890,863	$	101	$	(97,645	)	$	793,319
As of December 31, 2023
Federal agency	$	100,000	$	-	$	(17,784	)	$	82,216
Mortgage-backed:
Government-sponsored enterprises		228,720		-		(31,613	)		197,107
U.S. government agency securities		17,086		3		(566	)		16,523
Collateralized mortgage obligations:
Government-sponsored enterprises		187,457		57		(12,021	)		175,493
U.S. government agency securities		63,878		-		(10,908	)		52,970
State & municipal		308,126		211		(18,122	)		290,215
Total HTM securities	$	905,267	$	271	$	(91,014	)	$	814,524

Gains and (Losses) on Equity Securities

The following table sets forth information with regard to gains and (losses) on equity securities:

	Three Months Ended March 31,
(In thousands)	2024				2023
Net (losses) and gains recognized on equity securities		$	(101	)		$	2
Less: Net (losses) and gains recognized on equity securities sold during the period			-				-
Unrealized (losses) and gains recognized on equity securities still held		$	(101	)		$	2

Contractual Maturities of Debt Securities

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2024:

(In thousands)	Amortized Cost		Estimated Fair Value
AFS debt securities:
Within one year	$	50,294	$	49,553
From one to five years		567,513		508,211
From five to ten years		314,839		277,648
After ten years		675,337		583,059
Total AFS debt securities	$	1,607,983	$	1,418,471
HTM debt securities:
Within one year	$	98,660	$	98,460
From one to five years		125,141		119,411
From five to ten years		242,973		210,783
After ten years		424,089		364,665
Total HTM debt securities	$	890,863	$	793,319

Investment Securities with Unrealized Losses

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities had been in a continuous unrealized loss position:

	Less Than 12 Months							12 Months or Longer							Total
(In thousands)	Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions
As of March 31, 2024
AFS securities:
U.S. treasury	$	-	$	-			-	$	124,683	$	(8,759	)		8	$	124,683	$	(8,759	)		8
Federal agency		-		-			-		213,304		(35,071	)		16		213,304		(35,071	)		16
State & municipal		-		-			-		85,266		(10,022	)		66		85,266		(10,022	)		66
Mortgage-backed		136		(1	)		9		404,618		(52,980	)		158		404,754		(52,981	)		167
Collateralized mortgage obligations		11,033		(59	)		2		523,989		(76,110	)		120		535,022		(76,169	)		122
Corporate		1,459		(2	)		1		40,419		(6,571	)		14		41,878		(6,573	)		15
Total securities with unrealized losses	$	12,628	$	(62	)		12	$	1,392,279	$	(189,513	)		382	$	1,404,907	$	(189,575	)		394
HTM securities:
Federal agency	$	-	$	-			-	$	81,560	$	(18,440	)		4	$	81,560	$	(18,440	)		4
Mortgage-backed		11,905		(489	)		1		194,181		(34,434	)		33		206,086		(34,923	)		34
Collateralized mortgage obligation		8,189		(58	)		1		213,088		(24,614	)		52		221,277		(24,672	)		53
State & municipal		4,423		(13	)		4		181,355		(19,597	)		205		185,778		(19,610	)		209
Total securities with unrealized losses	$	24,517	$	(560	)		6	$	670,184	$	(97,085	)		294	$	694,701	$	(97,645	)		300
As of December 31, 2023
AFS securities:
U.S. treasury	$	-	$	-			-	$	125,024	$	(8,278	)		8	$	125,024	$	(8,278	)		8
Federal agency		-		-			-		214,740		(33,644	)		16		214,740		(33,644	)		16
State & municipal		-		-			-		85,528		(9,956	)		66		85,528		(9,956	)		66
Mortgage-backed		53		(1	)		7		421,259		(51,565	)		156		421,312		(51,566	)		163
Collateralized mortgage obligations		1,333		(6	)		2		536,678		(73,351	)		118		538,011		(73,357	)		120
Corporate		1,379		(75	)		1		39,597		(7,391	)		14		40,976		(7,466	)		15
Total securities with unrealized losses	$	2,765	$	(82	)		10	$	1,422,826	$	(184,185	)		378	$	1,425,591	$	(184,267	)		388
HTM securities:
Federal agency	$	-	$	-			-	$	82,216	$	(17,784	)		4	$	82,216	$	(17,784	)		4
Mortgage-backed		12,221		(365	)		1		201,320		(31,814	)		33		213,541		(32,179	)		34
Collateralized mortgage obligations		-		-			-		219,820		(22,929	)		54		219,820		(22,929	)		54
State & municipal		14,422		(127	)		21		171,904		(17,995	)		189		186,326		(18,122	)		210
Total securities with unrealized losses	$	26,643	$	(492	)		22	$	675,260	$	(90,522	)		280	$	701,903	$	(91,014	)		302

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Loans (Tables)

3 Months Ended

Mar. 31, 2024

Loans [Abstract]

Loans, Net of Deferred Fees and Origination Costs

A summary of loans, net of deferred fees and origination costs, by category is as follows:

(In thousands)	March 31, 2024		December 31, 2023
Commercial & industrial	$	1,353,446	$	1,354,248
Commercial real estate		3,646,739		3,626,910
Residential real estate		2,133,289		2,125,804
Home equity		328,673		337,214
Indirect auto		1,190,734		1,130,132
Residential solar		896,147		917,755
Other consumer		139,049		158,650
Total loans	$	9,688,077	$	9,650,713

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Allowance for Credit Losses and Credit Quality of Loans (Tables)

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses and Credit Quality of Loans [Abstract]

Allowance for Loan Losses by Portfolio

The following tables present the activity in the allowance for credit losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential			Total
Balance as of December 31, 2023	$	45,903		$	46,427		$	22,070		$	114,400
Charge-offs		(985	)		(5,581	)		(114	)		(6,680	)
Recoveries		198			1,651			152			2,001
Provision		(644	)		4,922			1,301			5,579
Ending balance as of March 31, 2024	$	44,472		$	47,419		$	23,409		$	115,300
Balance as of January 1, 2023 (after adoption of ASC 2022-02)	$	34,662		$	50,951		$	14,539		$	100,152
Charge-offs		(169	)		(5,342	)		(339	)		(5,850	)
Recoveries		541			1,377			121			2,039
Provision		1,006			1,834			1,069			3,909
Ending balance as of March 31, 2023	$	36,040		$	48,820		$	15,390		$	100,250

Past due and Nonperforming Loans by Loan Class

The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of March 31, 2024
Commercial loans:
C&I	$	1,711	$	750	$	-	$	2,461	$	3,079	$	1,398,831	$	1,404,371
CRE		1,929		64		-		1,993		18,743		3,424,810		3,445,546
Total commercial loans	$	3,640	$	814	$	-	$	4,454	$	21,822	$	4,823,641	$	4,849,917
Consumer loans:
Auto	$	10,376	$	1,676	$	1,045	$	13,097	$	2,274	$	1,142,702	$	1,158,073
Residential solar		3,940		1,362		446		5,748		125		890,274		896,147
Other consumer		2,054		1,158		882		4,094		299		146,372		150,765
Total consumer loans	$	16,370	$	4,196	$	2,373	$	22,939	$	2,698	$	2,179,348	$	2,204,985
Residential	$	3,799	$	858	$	227	$	4,884	$	10,669	$	2,617,622	$	2,633,175
Total loans	$	23,809	$	5,868	$	2,600	$	32,277	$	35,189	$	9,620,611	$	9,688,077

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2023
Commercial loans:
C&I	$	414	$	33	$	1	$	448	$	3,441	$	1,393,616	$	1,397,505
CRE		803		835		-		1,638		18,126		3,413,984		3,433,748
Total commercial loans	$	1,217	$	868	$	1	$	2,086	$	21,567	$	4,807,600	$	4,831,253
Consumer loans:
Auto	$	10,115	$	2,011	$	1,067	$	13,193	$	2,106	$	1,084,143	$	1,099,442
Residential solar		3,074		1,301		915		5,290		245		912,220		917,755
Other consumer		2,343		1,811		1,124		5,278		215		164,867		170,360
Total consumer loans	$	15,532	$	5,123	$	3,106	$	23,761	$	2,566	$	2,161,230	$	2,187,557
Residential	$	3,836	$	399	$	554	$	4,789	$	10,080	$	2,617,034	$	2,631,903
Total loans	$	20,585	$	6,390	$	3,661	$	30,636	$	34,213	$	9,585,864	$	9,650,713

Credit Quality by Loan Class by Year of Origination (Vintage)

The following tables illustrate the Company’s credit quality by loan class by vintage and includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the three months ended March 31, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations. Included in other consumer gross charge-offs for the year ended December 31, 2023, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.8 million in overdrawn deposit accounts reported as 2023 originations.

(In thousands)	2024		2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
C&I
By internally assigned grade:
Pass	$	60,820	$	214,985		$	243,619		$	231,577		$	146,409		$	129,310		$	318,078	$	2,585	$	1,347,383
Special mention		-		1,795			2,802			378			3,845			1,812			15,946		251		26,829
Substandard		-		2,934			3,154			1,885			289			6,845			14,880		127		30,114
Doubtful		-		21			1			19			-			4			-		-		45
Total C&I	$	60,820	$	219,735		$	249,576		$	233,859		$	150,543		$	137,971		$	348,904	$	2,963	$	1,404,371
Current-period gross charge-offs	$	-	$	(9	)	$	(900	)	$	-		$	-		$	(76	)	$	-	$	-	$	(985	)
CRE
By internally assigned grade:
Pass	$	81,048	$	362,660		$	492,661		$	546,787		$	449,533		$	1,013,118		$	308,977	$	37,243	$	3,292,027
Special mention		-		3,602			5,971			7,842			3,875			28,841			3,547		-		53,678
Substandard		-		-			726			17,961			1,132			61,499			1,542		16,981		99,841
Total CRE	$	81,048	$	366,262		$	499,358		$	572,590		$	454,540		$	1,103,458		$	314,066	$	54,224	$	3,445,546
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	-		$	-	$	-	$	-
Auto
By payment activity:
Performing	$	175,451	$	430,001		$	331,202		$	138,915		$	36,140		$	43,045		$	-	$	-	$	1,154,754
Nonperforming		29		1,014			1,171			724			94			287			-		-		3,319
Total auto	$	175,480	$	431,015		$	332,373		$	139,639		$	36,234		$	43,332		$	-	$	-	$	1,158,073
Current-period gross charge-offs	$	-	$	(274	)	$	(493	)	$	(226	)	$	(12	)	$	(122	)	$	-	$	-	$	(1,127	)
Residential solar
By payment activity:
Performing	$	1,365	$	149,789		$	422,422		$	176,158		$	63,222		$	82,620		$	-	$	-	$	895,576
Nonperforming		-		-			432			76			-			63			-		-		571
Total residential solar	$	1,365	$	149,789		$	422,854		$	176,234		$	63,222		$	82,683		$	-	$	-	$	896,147
Current-period gross charge-offs	$	-	$	(53	)	$	(910	)	$	(136	)	$	-		$	(196	)	$	-	$	-	$	(1,295	)
Other consumer
By payment activity:
Performing	$	5,600	$	10,559		$	22,720		$	47,947		$	18,029		$	25,681		$	19,015	$	33	$	149,584
Nonperforming		-		5			184			650			39			295			1		7		1,181
Total other consumer	$	5,600	$	10,564		$	22,904		$	48,597		$	18,068		$	25,976		$	19,016	$	40	$	150,765
Current-period gross charge-offs	$	-	$	(250	)	$	(811	)	$	(1,453	)	$	(364	)	$	(281	)	$	-	$	-	$	(3,159	)
Residential
By payment activity:
Performing	$	39,693	$	258,154		$	336,357		$	438,007		$	273,451		$	1,006,816		$	255,582	$	14,219	$	2,622,279
Nonperforming		-		626			825			1,605			272			7,568			-		-		10,896
Total residential	$	39,693	$	258,780		$	337,182		$	439,612		$	273,723		$	1,014,384		$	255,582	$	14,219	$	2,633,175
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	(114	)	$	-	$	-	$	(114	)
Total loans	$	364,006	$	1,436,145		$	1,864,247		$	1,610,531		$	996,330		$	2,407,804		$	937,568	$	71,446	$	9,688,077
Current-period gross charge-offs	$	-	$	(586	)	$	(3,114	)	$	(1,815	)	$	(376	)	$	(789	)	$	-	$	-	$	(6,680	)

(In thousands)	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2023
C&I
By internally assigned grade:
Pass	$	229,249		$	270,796		$	241,993		$	158,051		$	74,469		$	63,826		$	299,248	$	2,923	$	1,340,555
Special mention		420			1,672			277			3,524			87			1,854			19,489		-		27,323
Substandard		1,496			2,461			1,609			282			2,266			5,632			14,266		1,607		29,619
Doubtful		-			1			2			-			4			1			-		-		8
Total C&I	$	231,165		$	274,930		$	243,881		$	161,857		$	76,826		$	71,313		$	333,003	$	4,530	$	1,397,505
Current-period gross charge-offs	$	(24	)	$	(3,021	)	$	(5	)	$	(86	)	$	-		$	(600	)	$	-	$	-	$	(3,736	)
CRE
By internally assigned grade:
Pass	$	353,161		$	518,201		$	561,897		$	452,110		$	327,804		$	739,189		$	294,039	$	33,705	$	3,280,106
Special mention		3,577			4,472			10,711			7,055			9,967			39,460			2,970		-		78,212
Substandard		370			731			21,807			1,146			2,996			37,418			10,962		-		75,430
Total CRE	$	357,108		$	523,404		$	594,415		$	460,311		$	340,767		$	816,067		$	307,971	$	33,705	$	3,433,748
Current-period gross charge-offs	$	-		$	-		$	-		$	-		$	(114	)	$	(304	)	$	-	$	-	$	(418	)
Auto
By payment activity:
Performing	$	474,369		$	363,516		$	157,251		$	42,644		$	45,406		$	13,071		$	12	$	-	$	1,096,269
Nonperforming		532			1,241			830			190			306			74			-		-		3,173
Total auto	$	474,901		$	364,757		$	158,081		$	42,834		$	45,712		$	13,145		$	12	$	-	$	1,099,442
Current-period gross charge-offs	$	(102	)	$	(1,183	)	$	(1,066	)	$	(340	)	$	(301	)	$	(295	)	$	-	$	-	$	(3,287	)
Residential solar
By payment activity:
Performing	$	155,425		$	430,855		$	178,839		$	65,382		$	46,554		$	39,540		$	-	$	-	$	916,595
Nonperforming		-			837			205			18			47			53			-		-		1,160
Total residential solar	$	155,425		$	431,692		$	179,044		$	65,400		$	46,601		$	39,593		$	-	$	-	$	917,755
Current-period gross charge-offs	$	(150	)	$	(1,930	)	$	(923	)	$	(45	)	$	(558	)	$	(345	)	$	-	$	-	$	(3,951	)
Other consumer
By payment activity:
Performing	$	13,089		$	27,394		$	57,876		$	21,087		$	14,548		$	15,964		$	19,042	$	21	$	169,021
Nonperforming		-			244			685			144			56			161			4		45		1,339
Total other consumer	$	13,089		$	27,638		$	58,561		$	21,231		$	14,604		$	16,125		$	19,046	$	66	$	170,360
Current-period gross charge-offs	$	(885	)	$	(3,744	)	$	(7,511	)	$	(1,329	)	$	(832	)	$	(568	)	$	-	$	-	$	(14,869	)
Residential
By payment activity:
Performing	$	212,799		$	366,860		$	453,206		$	267,845		$	167,860		$	876,563		$	260,836	$	15,300	$	2,621,269
Nonperforming		134			430			1,121			385			591			7,460			-		513		10,634
Total residential	$	212,933		$	367,290		$	454,327		$	268,230		$	168,451		$	884,023		$	260,836	$	15,813	$	2,631,903
Current-period gross charge-offs	$	-		$	-		$	(81	)	$	(30	)	$	-		$	(406	)	$	-	$	-	$	(517	)
Total loans	$	1,444,621		$	1,989,711		$	1,688,309		$	1,019,863		$	692,961		$	1,840,266		$	920,868	$	54,114	$	9,650,713
Current-period gross charge-offs	$	(1,161	)	$	(9,878	)	$	(9,586	)	$	(1,830	)	$	(1,805	)	$	(2,518	)	$	-	$	-	$	(26,778	)

Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

	Three Months Ended March 31, 2024
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	294		0.011	%
Total	$	294

	Three Months Ended March 31, 2023
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	43		0.002	%
Total	$	43

Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

	Three Months Ended March 31, 2024
Loan Type	Term Extension
Residential	Added a weighted-average 7.4 years to the life of loans, which reduced monthly payment amounts for the borrowers.

	Three Months Ended March 31, 2023
Loan Type	Term Extension
Residential	Added a weighted-average 18 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Performance of Modified Loans

The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months:

	Payment Status (Amortized Cost Basis)
(In thousands)	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due
As of March 31, 2024
Loan Type
Residential	$	863	$	-	$	-	$	29
Total	$	863	$	-	$	-	$	29

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Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2024

Short-Term Borrowings [Abstract]

Information Related to Short-term Borrowings

Information related to short-term borrowings is summarized as follows:

(In thousands)	March 31, 2024		December 31, 2023
Federal funds purchased	$	78,000	$	-
Securities sold under repurchase agreements		86,134		93,651
Other short-term borrowings		103,000		293,000
Total short-term borrowings	$	267,134	$	386,651

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Defined Benefit Post-Retirement Plans (Tables)

3 Months Ended

Mar. 31, 2024

Defined Benefit Post-Retirement Plans [Abstract]

Net Periodic Pension Benefits and Other Benefit Costs

The components of expense for Pension Benefits and Other Benefits are set forth below:

	Pension Benefits						Other Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	2024			2023			2024			2023
Components of net periodic (benefit) cost:
Service cost	$	514		$	482		$	1		$	1
Interest cost		1,005			1,010			55			56
Expected return on plan assets		(1,983	)		(1,853	)		-			-
Net amortization		453			670			(1	)		(21	)
Total net periodic (benefit) cost	$	(11	)	$	309		$	55		$	36

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Earnings Per Share

The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:

	Three Months Ended March 31,
(In thousands, except per share data)	2024		2023
Basic EPS:
Weighted average common shares outstanding		47,148		42,894
Net income available to common stockholders	$	33,823	$	33,658
Basic EPS	$	0.72	$	0.78
Diluted EPS:
Weighted average common shares outstanding		47,148		42,894
Dilutive effect of common stock options and restricted stock		222		232
Weighted average common shares and common share equivalents		47,370		43,126
Net income available to common stockholders	$	33,823	$	33,658
Diluted EPS	$	0.71	$	0.78

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Reclassification Adjustments Out of Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2024

Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract]

Reclassification Adjustments out of AOCI

The following table summarizes the reclassification adjustments out of AOCI:

Detail About AOCI Components	Amount Reclassified from AOCI						Affected Line Item in the Consolidated Statements of Comprehensive Income (Loss)
	Three Months Ended
(In thousands)	March 31, 2024			March 31, 2023
AFS securities:
Losses on AFS securities	$	-		$	5,000		Net securities (gains) losses
Amortization of unrealized gains related to securities transfer		96			114		Interest income
Tax effect	$	(24	)	$	(1,278	)	Income tax (benefit)
Net of tax	$	72		$	3,836
Pension and other benefits:
Amortization of net losses	$	454		$	640		Other noninterest expense
Amortization of prior service costs		(2	)		9		Other noninterest expense
Tax effect	$	(113	)	$	(163	)	Income tax (benefit)
Net of tax	$	339		$	486
Total reclassifications, net of tax	$	411		$	4,322

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Summary of Derivatives Outstanding

The following table summarizes the derivatives outstanding:

(In thousands)	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
As of March 31, 2024
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,330,997	Other assets	$	114,205	$	1,330,997	Other liabilities	$	114,101
Risk participation agreements		71,511	Other assets		84		15,571	Other liabilities		3
Total derivatives not designated as hedging instruments				$	114,289				$	114,104
Netting adjustments(1)					24,321					-
Net derivatives in the balance sheet				$	89,968				$	114,104
Derivatives not offset on the balance sheet				$	1,924				$	1,924
Cash collateral(2)					-					-
Net derivative amounts				$	88,044				$	112,180
As of December 31, 2023
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,303,711	Other assets	$	95,972	$	1,303,711	Other liabilities	$	95,869
Risk participation agreements		62,112	Other assets		19		16,146	Other liabilities		6
Total derivatives not designated as hedging instruments				$	95,991				$	95,875
Netting adjustments(1)					20,849					-
Net derivatives in the balance sheet				$	75,142				$	95,875
Derivatives not offset on the balance sheet				$	2,930				$	2,930
Cash collateral(2)					-					-
Net derivative amounts				$	72,212				$	92,945

(1) Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

(2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Not Designated as Hedging Instrument [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Effect of Derivatives on AOCI and on Consolidated Statement of Income

The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:

	Three Months Ended March 31,
(In thousands)	2024		2023
Derivatives not designated as hedging instruments:
Increase in other income	$	75	$	7

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Fair Value Measurements and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

(In thousands)	Level 1		Level 2		Level 3		March 31, 2024
Assets:
AFS securities:
U.S. treasury	$	124,683	$	-	$	-	$	124,683
Federal agency		-		213,304		-		213,304
State & municipal		-		86,033		-		86,033
Mortgage-backed		-		405,547		-		405,547
Collateralized mortgage obligations		-		547,026		-		547,026
Corporate		-		41,878		-		41,878
Total AFS securities	$	124,683	$	1,293,788	$	-	$	1,418,471
Equity securities		38,470		1,000		-		39,470
Derivatives		-		89,968		-		89,968
Total	$	163,153	$	1,384,756	$	-	$	1,547,909
Liabilities:
Derivatives	$	-	$	114,104	$	-	$	114,104
Total	$	-	$	114,104	$	-	$	114,104

(In thousands)	Level 1		Level 2		Level 3		December 31, 2023
Assets:
AFS securities:
U.S. treasury	$	125,024	$	-	$	-	$	125,024
Federal agency		-		214,740		-		214,740
State & municipal		-		86,306		-		86,306
Mortgage-backed		-		422,268		-		422,268
Collateralized mortgage obligations		-		541,544		-		541,544
Corporate		-		40,976		-		40,976
Total AFS securities	$	125,024	$	1,305,834	$	-	$	1,430,858
Equity securities		36,591		1,000		-		37,591
Derivatives		-		75,142		-		75,142
Total	$	161,615	$	1,381,976	$	-	$	1,543,591
Liabilities:
Derivatives	$	-	$	95,875	$	-	$	95,875
Total	$	-	$	95,875	$	-	$	95,875

Information with Regard to Estimated Fair Values of Financial Instruments

The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings, accrued interest payable and derivatives.

			March 31, 2024				December 31, 2023
(In thousands)	Fair Value Hierarchy		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
HTM securities		2	$	890,863	$	793,319	$	905,267	$	814,524
Net loans		3		9,576,040		9,173,300		9,539,684		9,216,162
Financial liabilities:
Time deposits		2	$	1,368,136	$	1,348,934	$	1,324,709	$	1,285,999
Long-term debt		2		29,759		29,315		29,796		29,416
Subordinated debt		1		120,628		116,563		120,380		113,757
Junior subordinated debt		2		101,196		103,202		101,196		102,337

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Securities, Available for Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt securities, available-for-sale [Abstract]
Amortized cost	$ 1,607,983		$ 1,615,078
Unrealized gains	63		47
Unrealized losses	(189,575)		(184,267)
Estimated fair value	1,418,471		1,430,858
Allowance for credit losses on AFS securities	0		0
Gross realized gains	0
Gross realized losses	0	$ 5,000
Gain recognized on sale of previously written-off security	2,300
U.S. Treasury [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	133,442		133,302
Unrealized gains	0		0
Unrealized losses	(8,759)		(8,278)
Estimated fair value	124,683		125,024
Federal Agency [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	248,375		248,384
Unrealized gains	0		0
Unrealized losses	(35,071)		(33,644)
Estimated fair value	213,304		214,740
State & Municipal [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	96,054		96,251
Unrealized gains	1		11
Unrealized losses	(10,022)		(9,956)
Estimated fair value	86,033		86,306
Mortgage-Backed, Government Sponsored Enterprises [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	387,479		399,532
Unrealized gains	3		7
Unrealized losses	(45,461)		(44,264)
Estimated fair value	342,021		355,275
Mortgage-Backed, U.S. Government Agency Securities [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	71,036		74,281
Unrealized gains	10		14
Unrealized losses	(7,520)		(7,302)
Estimated fair value	63,526		66,993
Collateralized Mortgage Obligations, Government-Sponsored Enterprises [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	452,853		452,715
Unrealized gains	49		15
Unrealized losses	(50,135)		(48,257)
Estimated fair value	402,767		404,473
Collateralized Mortgage Obligations, U.S. Government Agency Securities [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	170,293		162,171
Unrealized gains	0		0
Unrealized losses	(26,034)		(25,100)
Estimated fair value	144,259		137,071
Corporate [Member]
Debt securities, available-for-sale [Abstract]
Amortized cost	48,451		48,442
Unrealized gains	0		0
Unrealized losses	(6,573)		(7,466)
Estimated fair value	$ 41,878		$ 40,976
Loss on the write-off of an AFS debt security		$ 5,000

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Securities, Held to Maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	$ 890,863		$ 905,267
Unrealized gains	101		271
Unrealized losses	(97,645)		(91,014)
Estimated fair value	793,319		814,524
Transactions of HTM securities [Abstract]
Gains from calls on HTM securities	0	$ 0
Asset Pledged as Collateral [Member] | Public Deposits or Other Purposes [Member]
Securities pledged [Abstract]
AFS and HTM securities	1,990,000		2,030,000
Asset Pledged as Collateral [Member] | Securities Sold under Repurchase Agreements [Member]
Securities pledged [Abstract]
AFS and HTM securities	159,300		177,200
Federal Agency [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	100,000		100,000
Unrealized gains	0		0
Unrealized losses	(18,440)		(17,784)
Estimated fair value	81,560		82,216
Mortgage-Backed, Government Sponsored Enterprises [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	224,344		228,720
Unrealized gains	0		0
Unrealized losses	(34,187)		(31,613)
Estimated fair value	190,157		197,107
Mortgage-Backed, U.S. Government Agency Securities [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	16,742		17,086
Unrealized gains	2		3
Unrealized losses	(736)		(566)
Estimated fair value	16,008		16,523
Collateralized Mortgage Obligations, Government-Sponsored Enterprises [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	182,813		187,457
Unrealized gains	0		57
Unrealized losses	(13,466)		(12,021)
Estimated fair value	169,347		175,493
Collateralized Mortgage Obligations, U.S. Government Agency Securities [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	63,137		63,878
Unrealized gains	0		0
Unrealized losses	(11,206)		(10,908)
Estimated fair value	51,931		52,970
State & Municipal [Member]
Held-to-maturity securities, fair value to amortized cost [Abstract]
Amortized cost	303,827		308,126
Unrealized gains	99		211
Unrealized losses	(19,610)		(18,122)
Estimated fair value	$ 284,316		$ 290,215

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Securities, Gains and (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Gains (losses) on equity securities [Abstract]
Net (losses) and gains recognized on equity securities	$ (101)	$ 2
Less: Net (losses) and gains recognized on equity securities sold during the period	0	0
Unrealized (losses) and gains recognized on equity securities still held	(101)	2
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract]
Carrying amount of equity securities without readily determinable fair values	1,000		$ 1,000
Impairment adjustments of equity securities without readily determinable fair values	0	0
Downward adjustments of equity securities without readily determinable fair values	0	0
Upward adjustments of equity securities without readily determinable fair values	$ 0	$ 0

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Securities, AFS Debt Securities, Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale Securities, Debt Maturities, Amortized Cost [Abstract]
Within one year	$ 50,294
From one to five years	567,513
From five to ten years	314,839
After ten years	675,337
Amortized cost	1,607,983	$ 1,615,078
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract]
Within one year	49,553
From one to five years	508,211
From five to ten years	277,648
After ten years	583,059
Fair value	$ 1,418,471	$ 1,430,858

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Securities, HTM Debt Securities, Contractual Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($) Issuer	Dec. 31, 2023 USD ($) Issuer
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract]
Within one year	$ 98,660
From one to five years	125,141
From five to ten years	242,973
After ten years	424,089
Amortized cost	890,863	$ 905,267
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value [Abstract]
Within one year	98,460
From one to five years	119,411
From five to ten years	210,783
After ten years	364,665
Fair value	$ 793,319	$ 814,524
Number of issuers whose holdings exceeded 10% of consolidated stockholders' equity, excluding U.S. Government securities and Government-sponsored enterprises securities | Issuer	0	0

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Securities, AFS Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2024 USD ($) Position	Dec. 31, 2023 USD ($) Position
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 12,628	$ 2,765
12 months or longer	1,392,279	1,422,826
Total	1,404,907	1,425,591
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(62)	(82)
12 months or longer	(189,513)	(184,185)
Total	$ (189,575)	$ (184,267)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	12	10
12 months or longer | Position	382	378
Total | Position	394	388
AIR on AFS debt securities	$ 3,900	$ 3,900
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
U.S. Treasury [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 0
12 months or longer	124,683	125,024
Total	124,683	125,024
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	(8,759)	(8,278)
Total	$ (8,759)	$ (8,278)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	0	0
12 months or longer | Position	8	8
Total | Position	8	8
Federal Agency [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 0
12 months or longer	213,304	214,740
Total	213,304	214,740
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	(35,071)	(33,644)
Total	$ (35,071)	$ (33,644)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	0	0
12 months or longer | Position	16	16
Total | Position	16	16
State & Municipal [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 0
12 months or longer	85,266	85,528
Total	85,266	85,528
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	(10,022)	(9,956)
Total	$ (10,022)	$ (9,956)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	0	0
12 months or longer | Position	66	66
Total | Position	66	66
Mortgage-Backed [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 136	$ 53
12 months or longer	404,618	421,259
Total	404,754	421,312
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(1)	(1)
12 months or longer	(52,980)	(51,565)
Total	$ (52,981)	$ (51,566)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	9	7
12 months or longer | Position	158	156
Total | Position	167	163
Collateralized Mortgage Obligations [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 11,033	$ 1,333
12 months or longer	523,989	536,678
Total	535,022	538,011
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(59)	(6)
12 months or longer	(76,110)	(73,351)
Total	$ (76,169)	$ (73,357)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	2	2
12 months or longer | Position	120	118
Total | Position	122	120
Corporate [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 1,459	$ 1,379
12 months or longer	40,419	39,597
Total	41,878	40,976
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(2)	(75)
12 months or longer	(6,571)	(7,391)
Total	$ (6,573)	$ (7,466)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	1	1
12 months or longer | Position	14	14
Total | Position	15	15

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Securities, HTM Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) Position	Dec. 31, 2023 USD ($) Position
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 24,517	$ 26,643
12 months or longer	670,184	675,260
Total	694,701	701,903
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(560)	(492)
12 months or longer	(97,085)	(90,522)
Total	$ (97,645)	$ (91,014)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	6	22
12 months or longer | Position	294	280
Total | Position	300	302
HTM debt securities, nonaccrual	$ 0	$ 0
Accrued interest reversed against interest income	0	0
Collateral-dependent HTM debt securities	0	0
Allowance for credit losses on HTM securities	0	0
AIR on HTM debt securities	$ 5,100	$ 4,700
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Past Due [Member]
Unrealized Loss Position, Number of Positions [Abstract]
HTM debt securities	$ 0	$ 0
Federal Agency [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	0	0
12 months or longer	81,560	82,216
Total	81,560	82,216
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	(18,440)	(17,784)
Total	$ (18,440)	$ (17,784)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	0	0
12 months or longer | Position	4	4
Total | Position	4	4
Mortgage-Backed [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 11,905	$ 12,221
12 months or longer	194,181	201,320
Total	206,086	213,541
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(489)	(365)
12 months or longer	(34,434)	(31,814)
Total	$ (34,923)	$ (32,179)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	1	1
12 months or longer | Position	33	33
Total | Position	34	34
Collateralized Mortgage Obligations [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 8,189	$ 0
12 months or longer	213,088	219,820
Total	221,277	219,820
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(58)	0
12 months or longer	(24,614)	(22,929)
Total	$ (24,672)	$ (22,929)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	1	0
12 months or longer | Position	52	54
Total | Position	53	54
State & Municipal [Member]
Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 4,423	$ 14,422
12 months or longer	181,355	171,904
Total	185,778	186,326
Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	(13)	(127)
12 months or longer	(19,597)	(17,995)
Total	$ (19,610)	$ (18,122)
Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position	4	21
12 months or longer | Position	205	189
Total | Position	209	210
US Government Agencies Debt Securities and US Government-sponsored Enterprises Debt Securities [Member]
Unrealized Loss Position, Number of Positions [Abstract]
Held-to-maturity debt securities, percentage	66.00%	66.00%

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Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Summary of Loans [Abstract]
Loans	$ 9,688,077	$ 9,650,713
Deferred loan origination (fees) costs, net	89,200	98,200
Commercial and Industrial [Member]
Summary of Loans [Abstract]
Loans	1,353,446	1,354,248
Commercial Real Estate [Member]
Summary of Loans [Abstract]
Loans	3,646,739	3,626,910
Residential Real Estate [Member]
Summary of Loans [Abstract]
Loans	2,133,289	2,125,804
Home Equity [Member]
Summary of Loans [Abstract]
Loans	328,673	337,214
Indirect Auto [Member]
Summary of Loans [Abstract]
Loans	1,190,734	1,130,132
Residential Solar [Member]
Summary of Loans [Abstract]
Loans	896,147	917,755
Other Consumer [Member]
Summary of Loans [Abstract]
Loans	$ 139,049	$ 158,650

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Allowance for Credit Losses and Credit Quality of Loans, Summary (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Allowance for Credit Losses [Abstract]
Allowance for credit losses	$ 115,300	$ 115,300	$ 114,400
Percentage of allowance of credit losses	1.19%	1.19%	1.19%
Salisbury Bank [Member]
Allowance for Credit Losses [Abstract]
Loans purchased with credit deterioration	$ 0		$ 219,500
Allowance for credit losses on loans purchased			5,800
Allowance for credit losses at acquisition		$ 14,500
Salisbury Bank [Member] | PCD [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses at acquisition		5,800
Salisbury Bank [Member] | Non-PCD [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses at acquisition		8,800
ASU 2022-02 [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses				$ 100,250	$ 100,152
Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2022-02 [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses					(600)
Accrued Interest Receivable [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses	0	0	0
AIR on loans	$ 34,400	$ 34,400	$ 34,100
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets	Other Assets
Residential [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses	$ 23,409	$ 23,409	$ 22,070
Amount of loans purchased	$ 400		$ 3,800
Premium on loans purchased	7.00%		7.00%
Allowance for credit losses on loans purchased	$ 4		$ 31
Residential [Member] | ASU 2022-02 [Member]
Allowance for Credit Losses [Abstract]
Allowance for credit losses				$ 15,390	$ 14,539

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Allowance for Credit Losses and Credit Quality of Loans, Allowance for Credit Losses by Portfolio Segments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period	$ 114,400
Charge-offs	(6,680)		$ (26,778)
Recoveries	2,001
Provision	5,579	$ 3,909
Balance, end of period	115,300		114,400
ASU 2022-02 [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period		100,152	100,152
Charge-offs		(5,850)
Recoveries		2,039
Provision		3,909
Balance, end of period		100,250
Commercial Loans [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period	45,903
Charge-offs	(985)
Recoveries	198
Provision	(644)
Balance, end of period	44,472		45,903
Commercial Loans [Member] | ASU 2022-02 [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period		34,662	34,662
Charge-offs		(169)
Recoveries		541
Provision		1,006
Balance, end of period		36,040
Consumer Loans [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period	46,427
Charge-offs	(5,581)
Recoveries	1,651
Provision	4,922
Balance, end of period	47,419		46,427
Consumer Loans [Member] | ASU 2022-02 [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period		50,951	50,951
Charge-offs		(5,342)
Recoveries		1,377
Provision		1,834
Balance, end of period		48,820
Residential [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period	22,070
Charge-offs	(114)		(517)
Recoveries	152
Provision	1,301
Balance, end of period	$ 23,409		22,070
Residential [Member] | ASU 2022-02 [Member]
Activity in allowance for credit losses by portfolio segment [Roll Forward]
Balance, beginning of period		14,539	$ 14,539
Charge-offs		(339)
Recoveries		121
Provision		1,069
Balance, end of period		$ 15,390

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Allowance for Credit Losses and Credit Quality of Loans, Past Due Loans (Details) $ in Thousands	Mar. 31, 2024 USD ($) Relationship	Dec. 31, 2023 USD ($) Relationship
Allowance for Credit Losses and Credit Quality of Loans [Abstract]
Threshold balance for loans specifically evaluated for individual credit loss	$ 1,000
Individually evaluated loans, number of relationships | Relationship	2	2
Individually evaluated loans, amortized cost	$ 17,100	$ 17,300
Individually evaluated loans, allowance for credit losses	0	0
Loans in non-accrual without an allowance for credit losses	17,100	17,300
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	35,189	34,213
Recorded total loans	9,688,077	9,650,713
Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	32,277	30,636
31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	23,809	20,585
61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	5,868	6,390
Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	2,600	3,661
Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	9,620,611	9,585,864
C&I [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,404,371	1,397,505
CRE [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	3,445,546	3,433,748
Auto [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,158,073	1,099,442
Residential Solar [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	896,147	917,755
Other Consumer [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	150,765	170,360
Commercial Loans [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	21,822	21,567
Recorded total loans	4,849,917	4,831,253
Commercial Loans [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	4,454	2,086
Commercial Loans [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	3,640	1,217
Commercial Loans [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	814	868
Commercial Loans [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	0	1
Commercial Loans [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	4,823,641	4,807,600
Commercial Loans [Member] | C&I [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	3,079	3,441
Recorded total loans	1,404,371	1,397,505
Commercial Loans [Member] | C&I [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	2,461	448
Commercial Loans [Member] | C&I [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,711	414
Commercial Loans [Member] | C&I [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	750	33
Commercial Loans [Member] | C&I [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	0	1
Commercial Loans [Member] | C&I [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,398,831	1,393,616
Commercial Loans [Member] | CRE [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	18,743	18,126
Recorded total loans	3,445,546	3,433,748
Commercial Loans [Member] | CRE [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,993	1,638
Commercial Loans [Member] | CRE [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,929	803
Commercial Loans [Member] | CRE [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	64	835
Commercial Loans [Member] | CRE [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	0	0
Commercial Loans [Member] | CRE [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	3,424,810	3,413,984
Consumer Loans [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	2,698	2,566
Recorded total loans	2,204,985	2,187,557
Consumer Loans [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	22,939	23,761
Consumer Loans [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	16,370	15,532
Consumer Loans [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	4,196	5,123
Consumer Loans [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	2,373	3,106
Consumer Loans [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	2,179,348	2,161,230
Consumer Loans [Member] | Auto [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	2,274	2,106
Recorded total loans	1,158,073	1,099,442
Consumer Loans [Member] | Auto [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	13,097	13,193
Consumer Loans [Member] | Auto [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	10,376	10,115
Consumer Loans [Member] | Auto [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,676	2,011
Consumer Loans [Member] | Auto [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,045	1,067
Consumer Loans [Member] | Auto [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,142,702	1,084,143
Consumer Loans [Member] | Residential Solar [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	125	245
Recorded total loans	896,147	917,755
Consumer Loans [Member] | Residential Solar [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	5,748	5,290
Consumer Loans [Member] | Residential Solar [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	3,940	3,074
Consumer Loans [Member] | Residential Solar [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,362	1,301
Consumer Loans [Member] | Residential Solar [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	446	915
Consumer Loans [Member] | Residential Solar [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	890,274	912,220
Consumer Loans [Member] | Other Consumer [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	299	215
Recorded total loans	150,765	170,360
Consumer Loans [Member] | Other Consumer [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	4,094	5,278
Consumer Loans [Member] | Other Consumer [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	2,054	2,343
Consumer Loans [Member] | Other Consumer [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	1,158	1,811
Consumer Loans [Member] | Other Consumer [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	882	1,124
Consumer Loans [Member] | Other Consumer [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	146,372	164,867
Residential [Member]
Past Due and Nonperforming Loans [Abstract]
Nonaccrual	10,669	10,080
Recorded total loans	2,633,175	2,631,903
Residential [Member] | Past Due [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	4,884	4,789
Residential [Member] | 31-60 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	3,799	3,836
Residential [Member] | 61-90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	858	399
Residential [Member] | Greater Than 90 Days Past Due Accruing [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	227	554
Residential [Member] | Current [Member]
Past Due and Nonperforming Loans [Abstract]
Recorded total loans	$ 2,617,622	$ 2,617,034

XML

Allowance for Credit Losses and Credit Quality of Loans, Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Minimum number of days past due for loans to be considered nonperforming	90 days
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	$ 364,006	$ 1,444,621
2023/2022	1,436,145	1,989,711
2022/2021	1,864,247	1,688,309
2021/2020	1,610,531	1,019,863
2020/2019	996,330	692,961
Prior	2,407,804	1,840,266
Revolving Loans Amortized Cost Basis	937,568	920,868
Revolving Loans Converted to Term	71,446	54,114
Total	9,688,077	9,650,713
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	(1,161)
2023/2022	(586)	(9,878)
2022/2021	(3,114)	(9,586)
2021/2020	(1,815)	(1,830)
2020/2019	(376)	(1,805)
Prior	(789)	(2,518)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(6,680)	(26,778)
C&I [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	60,820	231,165
2023/2022	219,735	274,930
2022/2021	249,576	243,881
2021/2020	233,859	161,857
2020/2019	150,543	76,826
Prior	137,971	71,313
Revolving Loans Amortized Cost Basis	348,904	333,003
Revolving Loans Converted to Term	2,963	4,530
Total	1,404,371	1,397,505
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	(24)
2023/2022	(9)	(3,021)
2022/2021	(900)	(5)
2021/2020	0	(86)
2020/2019	0	0
Prior	(76)	(600)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(985)	(3,736)
C&I [Member] | Pass [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	60,820	229,249
2023/2022	214,985	270,796
2022/2021	243,619	241,993
2021/2020	231,577	158,051
2020/2019	146,409	74,469
Prior	129,310	63,826
Revolving Loans Amortized Cost Basis	318,078	299,248
Revolving Loans Converted to Term	2,585	2,923
Total	1,347,383	1,340,555
C&I [Member] | Special Mention [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	420
2023/2022	1,795	1,672
2022/2021	2,802	277
2021/2020	378	3,524
2020/2019	3,845	87
Prior	1,812	1,854
Revolving Loans Amortized Cost Basis	15,946	19,489
Revolving Loans Converted to Term	251	0
Total	26,829	27,323
C&I [Member] | Substandard [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	1,496
2023/2022	2,934	2,461
2022/2021	3,154	1,609
2021/2020	1,885	282
2020/2019	289	2,266
Prior	6,845	5,632
Revolving Loans Amortized Cost Basis	14,880	14,266
Revolving Loans Converted to Term	127	1,607
Total	30,114	29,619
C&I [Member] | Doubtful [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	0
2023/2022	21	1
2022/2021	1	2
2021/2020	19	0
2020/2019	0	4
Prior	4	1
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	45	8
CRE [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	81,048	357,108
2023/2022	366,262	523,404
2022/2021	499,358	594,415
2021/2020	572,590	460,311
2020/2019	454,540	340,767
Prior	1,103,458	816,067
Revolving Loans Amortized Cost Basis	314,066	307,971
Revolving Loans Converted to Term	54,224	33,705
Total	3,445,546	3,433,748
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	0
2023/2022	0	0
2022/2021	0	0
2021/2020	0	0
2020/2019	0	(114)
Prior	0	(304)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	(418)
CRE [Member] | Pass [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	81,048	353,161
2023/2022	362,660	518,201
2022/2021	492,661	561,897
2021/2020	546,787	452,110
2020/2019	449,533	327,804
Prior	1,013,118	739,189
Revolving Loans Amortized Cost Basis	308,977	294,039
Revolving Loans Converted to Term	37,243	33,705
Total	3,292,027	3,280,106
CRE [Member] | Special Mention [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	3,577
2023/2022	3,602	4,472
2022/2021	5,971	10,711
2021/2020	7,842	7,055
2020/2019	3,875	9,967
Prior	28,841	39,460
Revolving Loans Amortized Cost Basis	3,547	2,970
Revolving Loans Converted to Term	0	0
Total	53,678	78,212
CRE [Member] | Substandard [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	370
2023/2022	0	731
2022/2021	726	21,807
2021/2020	17,961	1,146
2020/2019	1,132	2,996
Prior	61,499	37,418
Revolving Loans Amortized Cost Basis	1,542	10,962
Revolving Loans Converted to Term	16,981	0
Total	99,841	75,430
Auto [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	175,480	474,901
2023/2022	431,015	364,757
2022/2021	332,373	158,081
2021/2020	139,639	42,834
2020/2019	36,234	45,712
Prior	43,332	13,145
Revolving Loans Amortized Cost Basis	0	12
Revolving Loans Converted to Term	0	0
Total	1,158,073	1,099,442
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	(102)
2023/2022	(274)	(1,183)
2022/2021	(493)	(1,066)
2021/2020	(226)	(340)
2020/2019	(12)	(301)
Prior	(122)	(295)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(1,127)	(3,287)
Auto [Member] | Performing [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	175,451	474,369
2023/2022	430,001	363,516
2022/2021	331,202	157,251
2021/2020	138,915	42,644
2020/2019	36,140	45,406
Prior	43,045	13,071
Revolving Loans Amortized Cost Basis	0	12
Revolving Loans Converted to Term	0	0
Total	1,154,754	1,096,269
Auto [Member] | Nonperforming [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	29	532
2023/2022	1,014	1,241
2022/2021	1,171	830
2021/2020	724	190
2020/2019	94	306
Prior	287	74
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	3,319	3,173
Residential Solar [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	1,365	155,425
2023/2022	149,789	431,692
2022/2021	422,854	179,044
2021/2020	176,234	65,400
2020/2019	63,222	46,601
Prior	82,683	39,593
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	896,147	917,755
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	(150)
2023/2022	(53)	(1,930)
2022/2021	(910)	(923)
2021/2020	(136)	(45)
2020/2019	0	(558)
Prior	(196)	(345)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(1,295)	(3,951)
Residential Solar [Member] | Performing [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	1,365	155,425
2023/2022	149,789	430,855
2022/2021	422,422	178,839
2021/2020	176,158	65,382
2020/2019	63,222	46,554
Prior	82,620	39,540
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	895,576	916,595
Residential Solar [Member] | Nonperforming [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	0
2023/2022	0	837
2022/2021	432	205
2021/2020	76	18
2020/2019	0	47
Prior	63	53
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	571	1,160
Other Consumer [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Overdrawn deposit related to gross charge-offs reported as 2022 originations		200
Overdrawn deposit related to gross charge-offs reported as 2023 originations	200	800
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	5,600	13,089
2023/2022	10,564	27,638
2022/2021	22,904	58,561
2021/2020	48,597	21,231
2020/2019	18,068	14,604
Prior	25,976	16,125
Revolving Loans Amortized Cost Basis	19,016	19,046
Revolving Loans Converted to Term	40	66
Total	150,765	170,360
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	(885)
2023/2022	(250)	(3,744)
2022/2021	(811)	(7,511)
2021/2020	(1,453)	(1,329)
2020/2019	(364)	(832)
Prior	(281)	(568)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(3,159)	(14,869)
Other Consumer [Member] | Performing [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	5,600	13,089
2023/2022	10,559	27,394
2022/2021	22,720	57,876
2021/2020	47,947	21,087
2020/2019	18,029	14,548
Prior	25,681	15,964
Revolving Loans Amortized Cost Basis	19,015	19,042
Revolving Loans Converted to Term	33	21
Total	149,584	169,021
Other Consumer [Member] | Nonperforming [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	0
2023/2022	5	244
2022/2021	184	685
2021/2020	650	144
2020/2019	39	56
Prior	295	161
Revolving Loans Amortized Cost Basis	1	4
Revolving Loans Converted to Term	7	45
Total	1,181	1,339
Residential [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	39,693	212,933
2023/2022	258,780	367,290
2022/2021	337,182	454,327
2021/2020	439,612	268,230
2020/2019	273,723	168,451
Prior	1,014,384	884,023
Revolving Loans Amortized Cost Basis	255,582	260,836
Revolving Loans Converted to Term	14,219	15,813
Total	2,633,175	2,631,903
Gross Charge-offs by Loan Class by Vintage [Abstract]
2024/2023	0	0
2023/2022	0	0
2022/2021	0	(81)
2021/2020	0	(30)
2020/2019	0	0
Prior	(114)	(406)
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	(114)	(517)
Residential [Member] | Performing [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	39,693	212,799
2023/2022	258,154	366,860
2022/2021	336,357	453,206
2021/2020	438,007	267,845
2020/2019	273,451	167,860
Prior	1,006,816	876,563
Revolving Loans Amortized Cost Basis	255,582	260,836
Revolving Loans Converted to Term	14,219	15,300
Total	2,622,279	2,621,269
Residential [Member] | Nonperforming [Member]
Credit Quality by Loan Class by Vintage [Abstract]
2024/2023	0	134
2023/2022	626	430
2022/2021	825	1,121
2021/2020	1,605	385
2020/2019	272	591
Prior	7,568	7,460
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	513
Total	$ 10,896	$ 10,634

XML

Allowance for Credit Losses and Credit Quality of Loans, Allowance for Credit Losses on Off-Balance Sheet Credit Exposures (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Allowance for Credit Losses and Credit Quality of Loans [Abstract]
Allowance for credit losses	$ 115,300	$ 114,400
Unfunded Commitment [Member]
Allowance for Credit Losses and Credit Quality of Loans [Abstract]
Allowance for credit losses	$ 4,700	$ 5,100

XML

Allowance for Credit Losses and Credit Quality of Loans, Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty (Details) - Term Extension [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Modified Loans Disaggregated by Class of Financing Receivable and Type of Concession Granted [Abstract]
Amortized cost	$ 294	$ 43
Residential [Member]
Modified Loans Disaggregated by Class of Financing Receivable and Type of Concession Granted [Abstract]
Amortized cost	$ 294	$ 43
% of total class of financing receivables	0.011%	0.002%

XML

Allowance for Credit Losses and Credit Quality of Loans, Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty [Abstract]
Financing receivables with payment default that were modified to borrowers experiencing financial difficulty	$ 0	$ 0
Residential [Member] | Term Extension [Member]
Financing Receivable Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty [Abstract]
Period of increase in weighted-average maturity	7 years 4 months 24 days	18 years

XML

Allowance for Credit Losses and Credit Quality of Loans, Performance of Modified Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Current [Member]
Performance of Modified Loans [Abstract]
Amortized cost	$ 863
31-60 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	0
61-90 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	0
Greater Than 90 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	29
Residential [Member] | Current [Member]
Performance of Modified Loans [Abstract]
Amortized cost	863
Residential [Member] | 31-60 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	0
Residential [Member] | 61-90 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	0
Residential [Member] | Greater Than 90 Days Past Due [Member]
Performance of Modified Loans [Abstract]
Amortized cost	$ 29

XML

Short-Term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Short-Term Debt [Abstract]
Short-term borrowings	$ 267,134	$ 386,651
Federal Funds Purchased [Member]
Short-Term Debt [Abstract]
Short-term borrowings	78,000	0
Securities Sold under Repurchase Agreements [Member]
Short-Term Debt [Abstract]
Short-term borrowings	86,134	93,651
Other Short-Term Borrowings [Member]
Short-Term Debt [Abstract]
Short-term borrowings	$ 103,000	$ 293,000

XML

Defined Benefit Post-Retirement Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Benefit Post-Retirement Plans [Abstract]
Employer contributions	$ 0	$ 0
Pension Benefits [Member]
Components of net periodic (benefit) cost [Abstract]
Service cost	514	482
Interest cost	1,005	1,010
Expected return on plan assets	(1,983)	(1,853)
Net amortization	453	670
Total net periodic (benefit) cost	(11)	309
Other Benefits [Member]
Components of net periodic (benefit) cost [Abstract]
Service cost	1	1
Interest cost	55	56
Expected return on plan assets	0	0
Net amortization	(1)	(21)
Total net periodic (benefit) cost	$ 55	$ 36

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Basic EPS [Abstract]
Weighted average common shares outstanding (in shares)	47,148	42,894
Net income available to common stockholders	$ 33,823	$ 33,658
Basic EPS (in dollars per share)	$ 0.72	$ 0.78
Diluted EPS [Abstract]
Weighted average common shares outstanding (in shares)	47,148	42,894
Dilutive effect of common stock options and restricted stock (in shares)	222	232
Weighted average common shares and common share equivalents (in shares)	47,370	43,126
Net income available to common stockholders	$ 33,823	$ 33,658
Diluted EPS (in dollars per share)	$ 0.71	$ 0.78

XML

Reclassification Adjustments Out of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of AOCI [Abstract]
Net securities (gains) losses	$ 2,183	$ (4,998)
Interest income	95,174	95,066
Other noninterest expense	6,235	5,080
Income tax (benefit)	9,391	9,586
Net income	33,823	33,658
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Total reclassifications, net of tax	411	4,322
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Income tax (benefit)	(24)	(1,278)
Net income	72	3,836
Losses on AFS Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Net securities (gains) losses	0	5,000
Amortization of Unrealized Gains Related to Securities Transfer [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Interest income	96	114
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Income tax (benefit)	(113)	(163)
Net income	339	486
Amortization of Net Losses [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Other noninterest expense	454	640
Amortization of Prior Service Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of AOCI [Abstract]
Other noninterest expense	$ (2)	$ 9

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Derivative Instruments and Hedging Activities (Details) - Derivatives Not Designated as Hedging Instruments [Member] $ in Thousands		3 Months Ended
		Mar. 31, 2024 USD ($) Agreement	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) Agreement
Derivative Asset [Abstract]
Derivatives, fair value		$ 114,289		$ 95,991
Netting adjustments, fair value	[1]	24,321		20,849
Net derivatives in the balance sheet, fair value		89,968		75,142
Derivatives not offset on the balance sheet, fair value		1,924		2,930
Cash collateral, fair value	[2]	0		0
Net derivative amounts, fair value		88,044		72,212
Derivative Liability [Abstract]
Derivatives, fair value		114,104		95,875
Netting adjustments, fair value	[1]	0		0
Net derivatives in the balance sheet, fair value		114,104		95,875
Derivatives not offset on the balance sheet, fair value		1,924		2,930
Cash collateral, fair value	[2]	0		0
Net derivative amounts, fair value		112,180		$ 92,945
Other Income [Member]
Gain or loss recognized in income on derivatives not designating as a hedging relationship [Abstract]
Increase in other income		$ 75	$ 7
Interest Rate Swaps [Member]
Interest rate derivatives [Abstract]
Number of risk participation agreements held | Agreement		13		12
Interest Rate Swaps [Member] | Other Assets [Member]
Derivative Asset [Abstract]
Derivatives, notional amount		$ 1,330,997		$ 1,303,711
Derivatives, fair value		114,205		95,972
Interest Rate Swaps [Member] | Other Liabilities [Member]
Derivative Liability [Abstract]
Derivatives, notional amount		1,330,997		1,303,711
Derivatives, fair value		114,101		95,869
Risk Participation Agreements [Member] | Other Assets [Member]
Derivative Asset [Abstract]
Derivatives, notional amount		71,511		62,112
Derivatives, fair value		84		19
Risk Participation Agreements [Member] | Other Liabilities [Member]
Derivative Liability [Abstract]
Derivatives, notional amount		15,571		16,146
Derivatives, fair value		$ 3		$ 6

[1] Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

[2] Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

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Fair Value Measurements and Fair Value of Financial Instruments, Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
AFS securities [Abstract]
AFS securities	$ 1,418,471	$ 1,430,858
Equity securities	$ 39,470	37,591
Minimum [Member]
Fair Value Measurements [Abstract]
Liquidation expense ratio on impaired collateral	10.00%
Maximum [Member]
Fair Value Measurements [Abstract]
Liquidation expense ratio on impaired collateral	50.00%
U.S. Treasury [Member]
AFS securities [Abstract]
AFS securities	$ 124,683	125,024
Federal Agency [Member]
AFS securities [Abstract]
AFS securities	213,304	214,740
State & Municipal [Member]
AFS securities [Abstract]
AFS securities	86,033	86,306
Corporate [Member]
AFS securities [Abstract]
AFS securities	41,878	40,976
Recurring Basis [Member]
AFS securities [Abstract]
AFS securities	1,418,471	1,430,858
Equity securities	39,470	37,591
Derivatives	$ 89,968	$ 75,142
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Total	$ 1,547,909	$ 1,543,591
Liabilities [Abstract]
Derivatives	$ 114,104	$ 95,875
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Total	$ 114,104	$ 95,875
Recurring Basis [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	124,683	125,024
Equity securities	38,470	36,591
Derivatives	0	0
Total	163,153	161,615
Liabilities [Abstract]
Derivatives	0	0
Total	0	0
Recurring Basis [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	1,293,788	1,305,834
Equity securities	1,000	1,000
Derivatives	89,968	75,142
Total	1,384,756	1,381,976
Liabilities [Abstract]
Derivatives	114,104	95,875
Total	114,104	95,875
Recurring Basis [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Equity securities	0	0
Derivatives	0	0
Total	0	0
Liabilities [Abstract]
Derivatives	0	0
Total	0	0
Recurring Basis [Member] | U.S. Treasury [Member]
AFS securities [Abstract]
AFS securities	124,683	125,024
Recurring Basis [Member] | U.S. Treasury [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	124,683	125,024
Recurring Basis [Member] | U.S. Treasury [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | U.S. Treasury [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Federal Agency [Member]
AFS securities [Abstract]
AFS securities	213,304	214,740
Recurring Basis [Member] | Federal Agency [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Federal Agency [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	213,304	214,740
Recurring Basis [Member] | Federal Agency [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | State & Municipal [Member]
AFS securities [Abstract]
AFS securities	86,033	86,306
Recurring Basis [Member] | State & Municipal [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | State & Municipal [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	86,033	86,306
Recurring Basis [Member] | State & Municipal [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Mortgage-Backed [Member]
AFS securities [Abstract]
AFS securities	405,547	422,268
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	405,547	422,268
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member]
AFS securities [Abstract]
AFS securities	547,026	541,544
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	547,026	541,544
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Corporate [Member]
AFS securities [Abstract]
AFS securities	41,878	40,976
Recurring Basis [Member] | Corporate [Member] | Level 1 [Member]
AFS securities [Abstract]
AFS securities	0	0
Recurring Basis [Member] | Corporate [Member] | Level 2 [Member]
AFS securities [Abstract]
AFS securities	41,878	40,976
Recurring Basis [Member] | Corporate [Member] | Level 3 [Member]
AFS securities [Abstract]
AFS securities	0	0
Non-Recurring Basis [Member]
Fair Value Measurements [Abstract]
Loans individually evaluated for expected credit losses, fair value	$ 0	$ 0

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Fair Value Measurements and Fair Value of Financial Instruments, Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial assets [Abstract]
HTM securities	$ 793,319	$ 814,524
Carrying Amount [Member] | Level 1 [Member]
Financial liabilities [Abstract]
Subordinated debt	120,628	120,380
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
HTM securities	890,863	905,267
Financial liabilities [Abstract]
Time deposits	1,368,136	1,324,709
Long-term debt	29,759	29,796
Junior subordinated debt	101,196	101,196
Carrying Amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Net loans	9,576,040	9,539,684
Estimated Fair Value [Member] | Level 1 [Member]
Financial liabilities [Abstract]
Subordinated debt	116,563	113,757
Estimated Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
HTM securities	793,319	814,524
Financial liabilities [Abstract]
Time deposits	1,348,934	1,285,999
Long-term debt	29,315	29,416
Junior subordinated debt	103,202	102,337
Estimated Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Net loans	$ 9,173,300	$ 9,216,162

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Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Guarantor Obligations [Abstract]
Obligation instrument term	1 year
Commitment to Extend Credits and Unused Lines of Credit [Member]
Guarantor Obligations [Abstract]
Commitments - maximum potential obligation	$ 2,730.0	$ 2,250.0
Standby Letters of Credit [Member]
Guarantor Obligations [Abstract]
Commitments - maximum potential obligation	$ 42.0	$ 44.7