NBT Bancorp (NBTB) - 2024 Q2 - Quarterly Report

Financial Performance - Net income for Q2 2024 was $32.7 million, an increase of$2.6 million from Q2 2023, with diluted earnings per share at $0.69[119] - Operating net income for Q2 2024 was$32.8 million, or $0.69 per diluted common share, down from$0.80 per diluted common share in Q2 2023[120] - Diluted earnings per share for Q2 2024 was $0.69, a decrease of 1.4$0.71 in Q1 2024 and a decrease of 1.4% from $0.70 in Q2 2023[125] Income and Revenue - Net interest income for Q2 2024 was$97.2 million, up $8.1 million or 9.1$43.3 million, up $6.6 million or 18.1$43.2 million, a decrease of $2.2 million (4.8$11.2 million (34.9%) from Q2 2023[142] - Total noninterest income for the first half of 2024 was $88.6 million, up$25.2 million (39.7%) from the same period in 2023, driven by increases in retirement plan administration fees and wealth management fees[143] Loan and Deposit Growth - Total loans at the end of the period were $9.85 billion, an increase of$203.6 million or 4.2% annualized from December 31, 2023[122] - Total deposits at the end of the period were $11.27 billion, up$302.5 million or 2.8% from December 31, 2023[122] - Total loans increased by $203.6 million (4.2$1.40 billion[150] - Average deposits rose by $1.57 billion, or 16.5$1.31 billion in deposits acquired from Salisbury in Q3 2023[170] Interest Income and Expense - Interest income for Q2 2024 increased by $30.2 million, or 25.0$22.1 million, or 70.1%, compared to Q2 2023, primarily due to a 110 basis points increase in interest-bearing deposit costs[130] - Net interest income (FTE) for the three months ended June 30, 2024, was $97,832 thousand, compared to$89,487 thousand for the same period in 2023, reflecting an increase of 9.3%[134] Asset Quality and Loan Losses - The provision for loan losses was $8.9 million for Q2 2024, compared to$3.6 million in Q2 2023, reflecting an increase of $5.3 million[122] - The allowance for credit losses totaled$120.5 million at June 30, 2024, up from $100.4 million at June 30, 2023, representing an increase of 20.1$38.2 million at June 30, 2024, compared to $19.9 million at June 30, 2023, indicating a 91.5$38.1 million or 0.39% of total loans, unchanged from December 31, 2023, but up from $19.7 million or 0.24$1.46 billion, representing 10.83% of total assets at June 30, 2024, up from $1.43 billion, or 10.71$1,043,383 thousand, reflecting an increase from $1,027,846 thousand in Q1 2024[126] Acquisition and Integration - The Company completed the acquisition of Salisbury in August 2023, which had$1.46 billion in assets[121] - Salaries and employee benefits for Q2 2024 were $55.4 million, an increase from$46.8 million in Q2 2023, primarily due to the Salisbury acquisition[145] Regulatory and Liquidity - The Company considers its Basic Surplus position to be strong, but potential adverse impacts on liquidity are anticipated in 2024 due to rising interest rates and competition for deposits[190] - The Bank's ability to pay dividends is subject to compliance with regulatory capital requirements, which it currently meets[192] - Enhanced liquidity monitoring remains in place to address volatility in the banking system and liquidity risk[190]