NBT Bancorp (NBTB) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Financial Highlights NBT Bancorp Inc. reported Q2 2025 net income of $22.5 million and diluted EPS of $0.44; operating diluted EPS increased 28% year-over-year and 10% quarter-over-quarter, significantly impacted by the Evans Bancorp, Inc. acquisition completed on May 2, 2025 Financial Performance Summary | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------- | :--------------- | :--------------- | :--------------- | | Net Income (million USD) | 22.5 | 36.7 | 32.7 | | Diluted EPS (USD) | 0.44 | 0.77 | 0.69 | | Operating Diluted EPS (USD)| 0.88 | 0.80 | 0.69 | - Operating diluted EPS increased by 28% compared to Q2 2024 and 10% compared to Q1 2025[4] - The company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, adding 200 employees, 18 banking locations, $167 million in loans, and $186 million in deposits[3] CEO Commentary CEO Scott Kingsley highlighted sustained Net Interest Margin improvement and the positive impact of the Evans Bancorp, Inc. merger, driving significant operating earnings growth, and announced a 8.8% dividend increase to $0.37 per share for the thirteenth consecutive year - CEO Scott Kingsley stated that sustained Net Interest Margin improvement and the positive impact of the Evans Bancorp, Inc. merger led to a 28% year-over-year and 10% quarter-over-quarter increase in operating EPS for Q2[4] - The company increased its dividend for the thirteenth consecutive year, raising the Q3 cash dividend by 8.8% to $0.37 per share[4] Financial Performance Overview Net Income and EPS Q2 2025 net income was $22.5 million, with diluted EPS of $0.44; operating net income was $44.9 million, and operating diluted EPS was $0.88 Key Income and EPS Metrics | Metric | Amount | | :--------------------- | :------------- | | Net Income | 22.5 million USD | | Diluted EPS | 0.44 USD | | Operating Net Income | 44.9 million USD | | Operating Diluted EPS | 0.88 USD | Net Interest Income and Net Interest Margin Q2 2025 Net Interest Income (FTE) was $124.9 million, an increase of $17.0 million from the prior quarter, with FTE Net Interest Margin (NIM) at 3.59%, up 15 basis points quarter-over-quarter Net Interest Performance | Metric | Amount/Ratio | | :-------------------------------- | :---------- | | FTE Net Interest Income | 124.9 million USD | | Change from prior quarter | Increased by 17.0 million USD | | FTE Net Interest Margin (NIM) | 3.59% | | Change from prior quarter | Increased by 15 bps | | Yield on interest-earning assets | 5.12% | | Change from prior quarter | Increased by 17 bps | | Total cost of funds | 1.62% | | Change from prior quarter | Increased by 2 bps | | Acquisition-related net accretion (included in FTE Net Interest Income) | 5.0 million USD | | Change from Q1 2025 | Increased by 2.8 million USD | Noninterest Income Q2 2025 noninterest income was $46.8 million, representing 27% of total revenue (excluding securities gains/losses) Noninterest Income Summary | Metric | Amount/Ratio | | :-------------------------------- | :---------- | | Noninterest Income | 46.8 million USD | | Percentage of total revenue (excluding securities gains/losses) | 27% | Loans and Credit Quality Period-end total loans were $11.62 billion as of June 30, 2025, including $167 million from the Evans acquisition, with an annualized net charge-off rate of 0.09%, nonperforming loans at 0.40% of total loans, and allowance for loan losses at 1.21% of total loans Loan and Credit Quality Metrics | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Period-end Total Loans | 11.62 billion USD | | Of which, Evans acquired loans | 167 million USD | | Annualized Net Charge-off Rate | 0.09% | | Nonperforming Loans to Total Loans | 0.40% | | Allowance for Loan Losses to Total Loans | 1.21% | | Provision for Loan Losses | 17.8 million USD | | Of which, acquisition-related provision | 13.0 million USD | Deposits Total deposits were $13.52 billion as of June 30, 2025, including $186 million from the Evans acquisition, with a total deposit cost of 1.51% in Q2 2025, up 2 basis points from Q1 Deposit Overview | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Total Deposits | 13.52 billion USD | | Of which, Evans acquired deposits | 186 million USD | | Total Cost of Deposits | 1.51% | | Change from Q1 | Increased by 2 bps | Capital Shareholders' equity was $1.81 billion as of June 30, 2025, with tangible book value per share at $24.57, tangible common equity to total assets at 8.30%, CET1 ratio at 11.37%, and leverage ratio at 9.55% Capital Position | Metric | Amount/Ratio | | :--------------------- | :-------------- | | Shareholders' Equity | 1.81 billion USD | | Tangible Book Value Per Share | 24.57 USD | | Tangible Common Equity to Total Assets | 8.30% | | CET1 Ratio | 11.37% | | Leverage Ratio | 9.55% | Detailed Financial Analysis Net Interest Income and Net Interest Margin Q2 2025 net interest income was $124.2 million, up 15.9% quarter-over-quarter and 27.8% year-over-year, driven by the Evans acquisition, higher interest-earning asset yields, and improved Net Interest Margin (NIM), which reached 3.59%, up 15 bps quarter-over-quarter and 41 bps year-over-year Net Interest Income and Margin Trends | Metric | Q2 2025 | Change from Q1 2025 | Change from Q2 2024 | | :--------------------- | :--------------- | :------------------- | :------------------- | | Net Interest Income (million USD) | 124.2 | Increased by 17.0 (15.9%) | Increased by 27.0 (27.8%) | | FTE Net Interest Margin (NIM) | 3.59% | Increased by 15 bps | Increased by 41 bps | | Yield on interest-earning assets | 5.12% | Increased by 17 bps | Increased by 20 bps (YoY) | | Loan Yield | 5.77% | Increased by 15 bps | | | Total Cost of Deposits | 1.51% | Increased by 2 bps | Decreased by 17 bps (YoY) | | Total Cost of Funds | 1.62% | Increased by 2 bps | Decreased by 23 bps (YoY) | - The growth in net interest income was primarily attributable to the Evans acquisition, higher yields on interest-earning assets, and improved Net Interest Margin[6] - NBT completed the sale of Evans' available-for-sale investment securities portfolio in May, contributing to the increase in short-term interest-bearing accounts in Q2 2025[9] Noninterest Income Q2 2025 noninterest income (excluding securities gains/losses) was $46.8 million, a slight decrease of 1.5% quarter-over-quarter but an 8.1% increase year-over-year, with growth in card services revenue, retirement plan administration fees, and wealth management fees driven by the Evans acquisition, market performance, and new client accounts Noninterest Income Breakdown | Noninterest Income Category | Q2 2025 (million USD) | Change from Prior Quarter | Change from Q2 2024 | | :--------------- | :------------------------ | :------------- | :------------------- | | Total Noninterest Income (excluding securities gains/losses) | 46.8 | Decreased by 0.7 (1.5%) | Increased by 3.5 (8.1%) | | Card Services Revenue | | Increased by 0.8 | Increased by 0.5 | | Retirement Plan Administration Fees | | Flat | Increased by 0.9 (6.2%) | | Wealth Management Fees | | Flat | Increased by 0.5 (5.0%) | | Insurance Income | | Decreased by 0.7 | Increased by 6.5% | | Bank-Owned Life Insurance Income | | Decreased | | - Card services revenue growth was primarily driven by the Evans acquisition and increased transaction volumes[12] - Retirement plan administration fees benefited from higher asset management market values and a small third-party administration business acquisition in Q4 2024[12] - Wealth management fees increased due to market performance and new client account growth[12] Noninterest Expense Q2 2025 total noninterest expense was $122.6 million, significantly increasing both quarter-over-quarter and year-over-year, primarily due to the Evans acquisition; excluding acquisition-related expenses, noninterest expense grew 6.8% quarter-over-quarter and 17.7% year-over-year Noninterest Expense Breakdown | Noninterest Expense Category | Q2 2025 (million USD) | Change from Q1 2025 | Change from Q2 2024 | | :--------------- | :------------------------ | :------------------- | :------------------- | | Total Noninterest Expense | 122.6 | Increased by 22.7 | Increased by 33.0 | | Total Noninterest Expense (excluding acquisition-related expenses) | | Increased by 6.8% | Increased by 17.7% | | Acquisition-Related Expenses | 17.2 | | | | Salaries and Benefits | | Increased by 5.7% | Increased | | Technology and Data Services | | Increased by 0.6 | Increased by 1.6 | | Amortization of Intangible Assets | | Increased by 0.9 | Increased by 0.9 | - Salaries and benefits increased primarily due to the Evans acquisition adding 200 employees, full-quarter merit increases, and higher medical costs[12] - Technology and data services expenses increased due to the Evans acquisition, planned project timing, and ongoing investments in digital platform solutions[12] - Amortization of intangible assets increased primarily due to intangible asset amortization related to the Evans acquisition[12] Income Taxes The effective tax rate for Q2 2025 was 26.7%, higher than 22.0% in Q2 2024, mainly due to the estimated acquisition-related expenses from the Evans acquisition and a lower proportion of tax-exempt income to total taxable income Effective Tax Rate | Metric | Q2 2025 | Q2 2024 | | :----------- | :--------------- | :--------------- | | Effective Tax Rate | 26.7% | 22.0% | - The increase in the effective tax rate was primarily attributable to the impact of estimated acquisition-related expenses from the Evans acquisition and a lower proportion of tax-exempt income to total taxable income[13] Balance Sheet and Asset Quality Loans Period-end total loans were $11.62 billion as of June 30, 2025, an increase of $1.65 billion from December 31, 2024, and $1.77 billion from June 30, 2024; excluding planned exit portfolios and Evans acquired loans, period-end loans grew 2.5% from June 30, 2024 Loan Balances | Metric | June 30, 2025 (billion USD) | Dec 31, 2024 (billion USD) | June 30, 2024 (billion USD) | | :-------------------------------- | :--------------------- | :---------------------- | :--------------------- | | Period-end Total Loans | 11.62 | 9.97 | 9.85 | | Change from Dec 31, 2024 | Increased by 1.65 | | | | Change from June 30, 2024 | Increased by 1.77 | | | | Loan growth excluding specific portfolios and Evans acquisition | | | Increased by 2.21 (2.5%) | Deposits Total deposits were $13.52 billion as of June 30, 2025, an increase of $1.97 billion from December 31, 2024, and $2.25 billion from June 30, 2024; excluding Evans acquired deposits, deposits grew 3.4% from June 30, 2024, with an improved deposit mix including increases in demand, interest-bearing checking, and money market accounts, and a decrease in time deposits Deposit Balances and Mix | Metric | June 30, 2025 (billion USD) | Dec 31, 2024 (billion USD) | June 30, 2024 (billion USD) | | :-------------------------------- | :--------------------- | :---------------------- | :--------------------- | | Total Deposits | 13.52 | 11.55 | 11.27 | | Change from Dec 31, 2024 | Increased by 1.97 | | | | Change from June 30, 2024 | Increased by 2.25 | | | | Deposit growth excluding Evans acquisition | | Increased by 1.044 | Increased by 3.797 (3.4%) | | Loan-to-Deposit Ratio | 86.0% | 86.3% | 87.4% | - Deposit mix improved with increases in demand, interest-bearing checking, and money market accounts, and a decrease in time deposits[7] Asset Quality and Allowance for Loan Losses The annualized net charge-off rate for Q2 2025 significantly decreased to 9 basis points, with nonperforming assets to total assets improving from 0.38% on December 31, 2024, to 0.29% on June 30, 2025; the allowance for loan losses increased to $140.2 million, primarily due to Evans acquisition-related provisions and a slight deterioration in economic forecasts Asset Quality Trends | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net Charge-off Rate (annualized) | 0.09% | 0.27% | | | Nonperforming Assets to Total Assets | 0.29% | 0.35% | 0.38% | | Allowance for Loan Losses (million USD) | 140.2 | 117.0 | 116.0 | | Allowance for Loan Losses to Total Loans | 1.21% | 1.17% | 1.16% | | Provision for Loan Losses (current quarter) | 17.8 million USD | 7.6 million USD | | | Of which, acquisition-related provision for loan losses | 13.0 million USD | | | | Evans acquisition loan portion of allowance for loan losses | 20.7 million USD | | | - Net charge-off rate decreased primarily due to reduced net charge-offs in commercial and consumer loans[9] - The increase in allowance for loan losses includes $20.7 million for Evans acquired loans and a slight deterioration in economic forecasts, partially offset by portfolio mix changes from exiting other consumer and residential solar portfolios[9] Capital Management and Shareholder Returns Capital Ratios As of June 30, 2025, tangible common equity to tangible assets was 8.30%; shareholders' equity increased by $279 million from December 31, 2024, primarily driven by $221.8 million in capital from the Evans acquisition, $59.3 million in net income, and a $31.4 million reduction in accumulated other comprehensive loss, with a CET1 capital ratio of 11.37%, leverage ratio of 9.55%, and total risk-weighted capital ratio of 14.48% Capital Adequacy | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------- | :------------ | :------------ | :------------ | | Tangible Common Equity to Tangible Assets Ratio | 8.30% | 8.68% | 8.11% | | Tangible Book Value Per Share (USD) | 24.57 | 24.74 | 22.54 | | CET1 Capital Ratio | 11.37% | | | | Leverage Ratio | 9.55% | | | | Total Risk-Weighted Capital Ratio | 14.48% | | | - Shareholders' equity increased by $279 million, primarily driven by $221.8 million in capital from the Evans acquisition, $59.3 million in net income, and a $31.4 million reduction in accumulated other comprehensive loss[19] Dividend Announcement The Board of Directors approved a Q3 cash dividend of $0.37 per share, an increase of $0.03 or 8.8% from the Q3 2024 dividend, marking the company's thirteenth consecutive year of increasing its annual dividend Q3 Dividend Details | Metric | Amount/Ratio | | :--------------------- | :---------- | | Q3 Cash Dividend Per Share | 0.37 USD | | Increase from Q3 2024 | 0.03 USD | | Percentage Increase | 8.8% | | Consecutive Years of Annual Dividend Increase | 13 years | Stock Repurchase Program The company did not repurchase common stock in Q2 2025, with 1,992,400 shares remaining available under its stock repurchase program as of June 30, 2025 - The company did not repurchase common stock in Q2 2025[16] - As of June 30, 2025, 1,992,400 shares remained available under the company's stock repurchase program[16] Strategic Developments Evans Bancorp, Inc. Merger The company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025, issuing 5.1 million shares and acquiring approximately $130.4 million in net assets, including $167 million in loans and $186 million in deposits, resulting in $91.4 million in goodwill and $33.2 million in core deposit intangible assets - The company completed the acquisition of Evans Bancorp, Inc. on May 2, 2025[20] Acquisition Details | Metric | Amount | | :--------------------- | :------------- | | Common Shares Issued | 5.1 million shares | | Net Assets Acquired | 130.4 million USD | | Loans Acquired | 167 million USD | | Deposits Acquired | 186 million USD | | Goodwill Recorded | 91.4 million USD | | Core Deposit Intangible Recorded | 33.2 million USD | Subordinated Debt Redemption In July 2025, the company redeemed $118 million of subordinated debt with a weighted average interest rate of 5.45% using existing liquidity, which would have converted to a weighted average floating rate exceeding 9% if not redeemed - In July 2025, the company redeemed $118 million of subordinated debt[18] - The redeemed subordinated debt had a weighted average interest rate of 5.45%, which would have converted to a floating rate exceeding 9% if not redeemed[18] Company Information & Disclosures Conference Call and Webcast The company will host a conference call on Tuesday, July 29, 2025, at 10:00 AM ET to review Q2 2025 financial results, with an audio webcast link and presentation slides available and archived on the company's website - The company will host a conference call on July 29, 2025, to review Q2 2025 financial results[21] - The webcast link and presentation slides will be available and archived on the company's website for twelve months[21] Corporate Overview NBT Bancorp Inc. is a financial holding company headquartered in Norwich, New York, with total assets of $16.01 billion as of June 30, 2025, operating primarily through NBT Bank, N.A., EPIC Retirement Plan Services, and NBT Insurance Agency, LLC - NBT Bancorp Inc. is a financial holding company headquartered in Norwich, New York[22] Company Assets | Metric | Amount | | :----------- | :------------- | | Total Assets | 16.01 billion USD | - The company primarily operates through NBT Bank, N.A. (with 175 banking locations in seven states), EPIC Retirement Plan Services, and NBT Insurance Agency, LLC[22] Forward-Looking Statements This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, involving various factors that could cause actual results to differ materially from expectations, including economic conditions, asset quality changes, regulatory policies, market fluctuations, technological changes, and acquisition integration risks; readers are cautioned not to place undue reliance on these statements, and the company disclaims any obligation to publicly revise them - This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995[23] - Factors that could cause actual results to differ materially from forward-looking statements include economic conditions, changes in asset quality, regulatory policies, market fluctuations, technological changes, and acquisition integration[23] - The company cautions readers not to place undue reliance on any forward-looking statements and disclaims any obligation to publicly revise them, except as required by law[24][25] Non-GAAP Measures Explanation This press release includes non-GAAP financial information with reconciliations to comparable GAAP measures; management believes these non-GAAP metrics provide useful information for understanding core business performance and align with industry standards, but should not be considered substitutes for GAAP financial measures - This press release includes non-GAAP financial information and provides reconciliations to comparable GAAP measures[26] - Management believes non-GAAP metrics provide useful information for understanding core business performance and align with industry standards[26] - Non-GAAP metrics should not be considered substitutes for GAAP financial measures[26] Financial Statements and Reconciliations Selected Financial Data This section provides selected financial data for NBT Bancorp Inc. and its subsidiaries, covering profitability (reported and operating), balance sheet data, and capital ratios, presented quarterly and semi-annually for trend analysis Profitability (Reported) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Diluted EPS (USD) | 0.44 | 0.77 | 0.76 | 0.80 | 0.69 | | Return on Average Assets | 0.59% | 1.08% | 1.04% | 1.12% | 0.98% | | Return on Average Equity | 5.27% | 9.68% | 9.44% | 10.21% | 9.12% | | Return on Average Tangible Common Equity | 8.01% | 13.63% | 13.36% | 14.54% | 13.23% | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | Profitability (Operating) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Diluted EPS (USD) | 0.88 | 0.80 | 0.77 | 0.80 | 0.69 | | Return on Average Assets | 1.19% | 1.11% | 1.06% | 1.12% | 0.98% | | Return on Average Equity | 10.52% | 9.95% | 9.60% | 10.23% | 9.14% | | Return on Average Tangible Common Equity | 15.25% | 13.99% | 13.57% | 14.56% | 13.26% | Balance Sheet Data (Period-End) | Metric | Q2 2025 (thousand USD) | Q1 2025 (thousand USD) | Q4 2024 (thousand USD) | Q3 2024 (thousand USD) | Q2 2024 (thousand USD) | | :------------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Total Assets | 16,014,781 | 13,864,251 | 13,786,666 | 13,839,552 | 13,501,909 | | Total Deposits | 13,515,232 | 11,708,511 | 11,546,761 | 11,588,278 | 11,271,459 | | Shareholders' Equity | 1,805,166 | 1,565,775 | 1,526,141 | 1,521,980 | 1,461,955 | Capital Ratios (Period-End) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Equity to Assets Ratio | 11.27% | 11.29% | 11.07% | 11.00% | 10.83% | | Tangible Common Equity Ratio | 8.30% | 8.68% | 8.42% | 8.36% | 8.11% | | CET1 Capital Ratio | 11.37% | 12.12% | 11.93% | 11.86% | 11.70% | | Leverage Ratio | 9.55% | 10.39% | 10.24% | 10.29% | 10.16% | Asset Quality and Consolidated Loan Balances This section details the company's asset quality metrics and loan balances by business line, showing improved nonperforming assets and net charge-off rates in Q2 2025, while allowance for loan losses coverage remained high Asset Quality Data (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Nonperforming Loans | 46,392 | 47,691 | 51,617 | 37,319 | 38,088 | | Total Nonperforming Assets | 46,737 | 47,999 | 51,799 | 37,446 | 38,162 | | Allowance for Loan Losses | 140,200 | 117,000 | 116,000 | 119,500 | 120,500 | Asset Quality Ratios | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Allowance for Loan Losses to Total Loans | 1.21% | 1.17% | 1.16% | 1.21% | 1.22% | | Total Nonperforming Loans to Total Loans | 0.40% | 0.48% | 0.52% | 0.38% | 0.39% | | Total Nonperforming Assets to Total Assets | 0.29% | 0.35% | 0.38% | 0.27% | 0.28% | | Allowance for Loan Losses to Total Nonperforming Loans | 302.21% | 245.33% | 224.73% | 320.21% | 316.37% | | Net Charge-offs to Average Loans | 0.09% | 0.27% | 0.23% | 0.15% | 0.16% | Net Charge-offs by Loan Category (thousand USD) | Loan Category | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Commercial | 97 | 2,109 | 2,542 | 807 | (8) | | Residential Solar and Other Consumer | 1,542 | 3,315 | 2,517 | 2,452 | 3,036 | | Total Loan Net Charge-offs | 2,361 | 6,554 | 5,709 | 3,920 | 3,699 | Loan Balances by Category (thousand USD) | Loan Category | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Commercial and Industrial | 1,692,335 | 1,436,990 | 1,426,482 | 1,458,926 | 1,397,935 | | Commercial Real Estate | 4,800,494 | 3,890,115 | 3,876,698 | 3,792,498 | 3,784,214 | | Residential Real Estate | 2,530,344 | 2,127,588 | 2,142,249 | 2,143,766 | 2,134,875 | | Total Loans | 11,624,680 | 9,980,267 | 9,969,910 | 9,907,041 | 9,854,347 | Consolidated Balance Sheets This section presents the consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing the composition of assets, liabilities, and shareholders' equity, with total assets and deposits significantly increasing due to the Evans acquisition Assets (thousand USD) | Metric | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------- | :------------- | | Cash and Due from Banks | 264,777 | 205,083 | | Available-for-Sale Securities | 1,729,428 | 1,574,664 | | Held-to-Maturity Securities | 809,664 | 842,921 | | Net Loans | 11,484,480 | 9,853,910 | | Goodwill | 454,072 | 362,663 | | Intangible Assets, Net | 64,447 | 36,360 | | Total Assets | 16,014,781 | 13,786,666 | Liabilities and Shareholders' Equity (thousand USD) | Metric | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------- | :------------- | | Noninterest-Bearing Demand Deposits | 3,866,856 | 3,446,068 | | Savings, Interest-Bearing Checking and Money Market Deposits | 7,997,219 | 6,658,188 | | Time Deposits | 1,651,157 | 1,442,505 | | Total Deposits | 13,515,232 | 11,546,761 | | Subordinated Debt, Net | 141,943 | 121,201 | | Total Liabilities | 14,209,615 | 12,260,525 | | Total Shareholders' Equity | 1,805,166 | 1,526,141 | | Total Liabilities and Shareholders' Equity | 16,014,781 | 13,786,666 | Consolidated Statements of Income This section provides the company's consolidated statements of income on a quarterly and semi-annual basis, detailing interest income, interest expense, net interest income, provision for loan losses, noninterest income, noninterest expense, and ultimately net income and earnings per share Consolidated Statements of Income for the Three Months Ended (thousand USD) | Metric | Q2 2025 | Q2 2024 | | :------------------------- | :------------- | :------------- | | Total Interest, Fee and Dividend Income | 177,577 | 150,766 | | Total Interest Expense | 53,357 | 53,592 | | Net Interest Income | 124,220 | 97,174 | | Provision for Loan Losses | 17,835 | 8,899 | | Total Noninterest Income | 46,932 | 43,232 | | Total Noninterest Expense | 122,610 | 89,588 | | Income Tax Expense | 8,197 | 9,203 | | Net Income | 22,510 | 32,716 | | Diluted EPS (USD) | 0.44 | 0.69 | Consolidated Statements of Income for the Six Months Ended (thousand USD) | Metric | June 2025 | June 2024 | | :------------------------- | :----------- | :----------- | | Total Interest, Fee and Dividend Income | 331,981 | 297,703 | | Total Interest Expense | 100,538 | 105,355 | | Net Interest Income | 231,443 | 192,348 | | Provision for Loan Losses | 25,389 | 14,478 | | Total Noninterest Income | 94,384 | 88,624 | | Total Noninterest Expense | 222,510 | 181,361 | | Income Tax Expense | 18,673 | 18,594 | | Net Income | 59,255 | 66,539 | | Diluted EPS (USD) | 1.21 | 1.40 | Average Balance Sheets This section provides average balance sheets on a quarterly and year-to-date basis, including average interest-earning assets, average liabilities, and their corresponding yields and costs, reflecting trends in the company's balance sheet structure and funding costs Average Interest-Earning Assets (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Short-Term Interest-Bearing Accounts | 146,640 | 63,198 | 184,988 | 62,210 | 48,861 | | Loans | 11,064,920 | 9,981,487 | 9,957,879 | 9,865,412 | 9,772,014 | | Total Interest-Earning Assets | 13,958,413 | 12,701,136 | 12,704,655 | 12,447,198 | 12,367,957 | | Yield on Total Interest-Earning Assets | 5.12% | 4.95% | 4.96% | 5.01% | 4.92% | Average Interest-Bearing Liabilities (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Money Market Deposits | 3,808,024 | 3,496,552 | 3,504,937 | 3,342,845 | 3,254,252 | | Time Deposits | 1,600,908 | 1,450,846 | 1,446,798 | 1,442,424 | 1,391,062 | | Total Interest-Bearing Deposits | 9,163,351 | 8,201,336 | 8,178,398 | 7,952,132 | 7,835,762 | | Total Interest-Bearing Liabilities | 9,568,721 | 8,568,344 | 8,546,800 | 8,353,137 | 8,358,440 | | Cost of Total Interest-Bearing Liabilities | 2.24% | 2.23% | 2.40% | 2.60% | 2.58% | Net Interest Margin (FTE) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Interest Spread | 2.88% | 2.72% | 2.56% | 2.41% | 2.34% | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | | Cost of Total Deposits | 1.51% | 1.49% | 1.60% | 1.72% | 1.68% | | Cost of Total Funds | 1.62% | 1.60% | 1.71% | 1.85% | 1.85% | Non-GAAP Reconciliations This section provides reconciliations of non-GAAP financial metrics to the most directly comparable GAAP measures, including operating net income, FTE net interest income, tangible common equity to tangible assets ratio, and return on average tangible common equity, to offer a clearer view of performance Operating Net Income Reconciliation (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | 22,510 | 36,745 | 36,005 | 38,097 | 32,716 | | Merger-Related Expenses | 17,180 | 1,221 | 988 | 543 | - | | Acquisition-Related Provision for Credit Losses | 13,022 | - | - | - | - | | Operating Net Income | 44,923 | 37,765 | 36,609 | 38,149 | 32,788 | | Operating Diluted EPS (USD) | 0.88 | 0.80 | 0.77 | 0.80 | 0.69 | FTE Net Interest Income Reconciliation (thousand USD) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Interest Income | 124,220 | 107,223 | 106,105 | 101,669 | 97,174 | | Add: FTE Adjustment | 655 | 636 | 619 | 639 | 658 | | Net Interest Income (FTE) | 124,875 | 107,859 | 106,724 | 102,308 | 97,832 | | Net Interest Margin (FTE) | 3.59% | 3.44% | 3.34% | 3.27% | 3.18% | Tangible Common Equity to Tangible Assets Ratio Reconciliation | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Equity | 1,805,166 | 1,565,775 | 1,526,141 | 1,521,980 | 1,461,955 | | Intangible Assets | 518,519 | 396,912 | 399,023 | 397,853 | 398,686 | | Total Assets | 16,014,781 | 13,864,251 | 13,786,666 | 13,839,552 | 13,501,909 | | Tangible Common Equity to Tangible Assets Ratio | 8.30% | 8.68% | 8.42% | 8.36% | 8.11% | Return on Average Tangible Common Equity Reconciliation | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | 22,510 | 36,745 | 36,005 | 38,097 | 32,716 | | Net Income (Excluding Intangible Amortization) | 24,792 | 38,328 | 37,565 | 39,644 | 34,316 | | Average Tangible Common Equity | 1,241,349 | 1,140,565 | 1,118,649 | 1,084,885 | 1,043,383 | | Return on Average Tangible Common Equity | 8.01% | 13.63% | 13.36% | 14.54% | 13.23% |