Provision is recorded if there is additional credit deterioration after the acquisition date

Provision is recorded if there is additional credit deterioration after the acquisition date

(1) BancShares recorded no ACL on investment securities as part of the adoption of ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as of .

(2) Upon adoption of ASU 2016-13 as of , the concept of purchased credit impaired loans under ASC 310-30 was eliminated. Loans and leases determined at the date of acquisition, to have experienced more than insignificant credit quality since origination are accounted for under the guidance in ASC Topic 326-20, Credit Losses as purchased credit deteriorated assets. Non-PCD loans include originated and purchased non-credit deteriorated loans. Loans previously classified as PCI were determined to be PCD.

(3) Upon adoption of ASU 2016-13, we dissolved pooling of PCI loans allowed under ASC 310-30. This increased the amount of nonaccrual loans as those nonaccrual loans within performing PCI pools were previously excluded from reporting. As of , there were $47.0 million of nonaccrual loans released from performing PCI pools including $24.2 million of loans that were greater than 90 days past due. Of these nonaccrual loans, $27.5 million were outstanding as of .

(4) Loans originated in relation to the SBA-PPP do not have a recorded ACL. As of , the ratio of ACL to total Non-PCD loans excluding SBA-PPP loans was 0.68% while the ratio of ACL to total loans excluding SBA-PPP loans was 0.75%.

(2) Yields related to loans, leases and securities exempt from both federal and state income taxes, federal income taxes only, or state income taxes only are stated on a taxable-equivalent basis assuming statutory federal income tax rates of 21.0%, as well as state income tax rates of 3.4% for all periods presented. The taxable-equivalent adjustment was $597 thousand, $571 thousand and $897 thousand for the three months ended , respectively.

PCD loans and leases are recorded at fair value at the date of acquisition with an initial reserve recorded directly to the allowance for credit losses

Net interest income for the nine months ended , totaled $1.03 billion, an increase of $45.2 million, or 4.6% compared to the same period of 2019. This was partially offset by declines in the yield on interest-earning assets and higher deposit and borrowing balances. SBA-PPP loans contributed $47.9 million in interest and fee income during 2020. The taxable equivalent NIM decreased 57 basis points to 3.23% compared to 3.80% for the nine months ended , primarily due to a decline in yield on interest-earning assets coupled with an increase in total borrowings, only partially offset by a decline in the rate paid on interest-bearing deposits.

Noninterest expense totaled $883.3 million for payday loans CO the first nine months of 2020, a $71.8 million, or 8.9%, increase compared to the same period of 2019. The increase was largely driven by a $42.0 million increase in personnel expenses as a result of merit increases and personnel from acquisitions, an $11.5 million increase in processing fees paid to third parties reflecting continued investment in digital and technological capabilities and a $6.2 million increase in pension expense as a result of a decline in the discount rate.

The change was primarily due to SBA-PPP loans and organic loan growth coupled with lower rates paid on deposits and borrowings

In light of the announcement earlier today of entry into a definitive merger agreement with CIT, BancShares has cancelled its live conference call originally scheduled for , at 9 a.m.

Except to the extent required by applicable law or regulation, BancShares disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding BancShares and factors which could affect the forward-looking statements contained herein can be found in BancShares’ Annual Report on Form 10-K for the fiscal year ended , its Quarterly Reports on Form 10-Q for the periods ended , and its other filings with the Securities and Exchange Commission.