• NBT Bancorp Inc. Announces Third Quarter Net Income of $39.0 Million ($0.90 Per Diluted Common Share); Approves Dividend

    来源: Nasdaq GlobeNewswire / 25 10月 2022 16:15:01   America/New_York

    NORWICH, N.Y., Oct. 25, 2022 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and nine months ended September 30, 2022.

    Net income for the three months ended September 30, 2022 was $39.0 million, or $0.90 per diluted common share, compared to $37.4 million, or $0.86 per diluted share, in the third quarter of 2021 and $37.8 million, or $0.88 per diluted share, in the second quarter of 2022. Net interest income recognized in the third quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $0.3 million (less than $0.01 per diluted share), compared to $2.9 million ($0.05 per diluted share) in the third quarter of 2021 and $1.3 million ($0.02 per diluted share) in the second quarter of 2022. Net interest income in the third quarter of 2022 improved in comparison to the third quarter of 2021 and the linked second quarter of 2022, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate combined with growth in earning assets. The Company recorded a provision for loan losses of $4.5 million ($0.08 per diluted share) in the third quarter of 2022, compared to a net benefit of $3.3 million ($0.06 per diluted share) in the third quarter of 2021 and a provision of $4.4 million ($0.08 per diluted share) in the second quarter of 2022.

    CEO Comments

    “We are very pleased with our operating results for the third quarter and first nine months of 2022, which reflect strong execution by our team including solid organic loan growth and disciplined cost of funds management. With additional increases in the targeted Fed Funds rate, we continue to experience the benefits of an asset-sensitive balance sheet,” said NBT President and CEO John H. Watt, Jr. “Our asset quality continues to be excellent, with low levels of net charge-offs and nonperforming assets. Our fee-based businesses reported solid results despite the inherent headwinds associated with lower equity market valuations. Our improved net interest income generation overcame the $4 million or, seven cents per share, reduction in debit interchange revenue due to the Company being subject to the Durbin Amendment of the Dodd-Frank Act beginning in the third quarter of 2022.”

    Third Quarter Financial Highlights

    Net Income
    • Net income of $39.0 million
    • Diluted earnings per share of $0.90
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $94.8 million1
    • Net interest margin (“NIM”) on a FTE basis was 3.51%1, up 30 basis points (“bps”) from the prior quarter, due primarily to higher yields on earning assets
    • Total cost of deposits of 0.09%, up 2 bps from the prior quarter
    Noninterest Income
    • Noninterest income was $37.3 million, excluding securities gains (losses) and was 28.3% of total revenue
    Pre-Provision Net Revenue (“PPNR”)
    • PPNR1 was $55.7 million compared to $54.2 million in the second quarter of 2022 and $47.4 million in the third quarter of 2021
    Loans and Credit Quality
    • Period end total loans were $7.90 billion at September 30, 2022, up 9.1%, annualized, excluding impact of PPP loans
    • Period end loans increased $504.2 million from December 31, 2021, excluding $3.3 million and $101.2 million of PPP loans at September 30, 2022 and December 31, 2021, respectively
    • Net charge-offs to average loans was 0.07%, annualized
    • Nonperforming loans to total loans was 0.28%, down from 0.33% in the prior quarter
    • Allowance for loan losses to total loans of 1.22%, up 2 bps from the second quarter of 2022 due primarily to loan growth
    Capital
    • Announced a $0.30 per share dividend for the fourth quarter, which was a $0.02 per share, or 7.1%, increase from the fourth quarter of 2021
    • Stockholders’ equity decreased $93.9 million from December 31, 2021, driven by a $160.9 million decrease in accumulated other comprehensive income (“AOCI”) due to the change in the market value of securities available for sale, dividends declared of $36.9 million and the repurchase of common stock of $14.7 million, partly offset by net income generation of $115.9 million
    • Tangible book value per share2 was $20.25 at September 30, 2022, modestly lower than the third quarter of 2021 and the second quarter of 2022, due primarily to the impact of higher interest rates on available for sale investment securities and the related impact to AOCI
    • Tangible equity to assets of 7.64%1
    • CET1 ratio of 12.17%; Leverage ratio of 10.21%

    Loans

    • Period end total loans were $7.90 billion at September 30, 2022 and $7.50 billion at December 31, 2021.
    • Excluding PPP loans, period end loans increased $504.2 million from December 31, 2021. Commercial and industrial loans increased $103.6 million to $1.26 billion; commercial real estate loans increased $69.4 million to $2.72 billion; and total consumer loans increased $331.2 million to $3.92 billion.
    • Total PPP loans as of September 30, 2022 were $3.3 million (net of unamortized fees) with over 99% of the original $836 million forgiven or extinguished through the third quarter of 2022. The following PPP loan activity occurred during the third quarter of 2022:
      • $14.2 million of loans forgiven.
      • $0.3 million of interest and fees recognized into interest income, compared to $1.3 million for the second quarter of 2022 and $2.9 million for the third quarter of 2021.
    • Commercial line of credit utilization rate was 23% at September 30, 2022 and June 30, 2022, compared to 21% at September 30, 2021.

    Deposits

    • Total deposits at September 30, 2022 were $9.92 billion, compared to $10.23 billion at December 31, 2021, representing a 3% decline, which included a $100.0 million brokered deposit secured for liquidity uncertainty purposes early in the pandemic that matured in the prior quarter and declines in money markets deposits driven by certain large customers moving approximately $100 million of their deposit balances to an off-balance sheet, Company-designated short-term treasury product.
    • Loan to deposit ratio was 79.7% at September 30, 2022, compared to 73.3% at December 31, 2021.

    Net Interest Income and Net Interest Margin

    • Net interest income for the third quarter of 2022 was $94.5 million, which was up $6.9 million, or 7.9%, from the second quarter of 2022 and up $16.8 million, or 21.6%, from the third quarter of 2021 primarily due to higher yields on earning assets. PPP income for the third quarter of 2022 was $0.3 million, which was $1.0 million lower compared to the prior quarter and down $2.5 million compared to the third quarter of 2021.
    • The NIM on a FTE basis for the third quarter of 2022 was 3.51%, up 30 bps from the second quarter of 2022 and up 63 bps from the third quarter of 2021 due to higher earning asset yields partly offset by higher cost of interest-bearing liabilities.
    • Earning asset yields for the three months ended September 30, 2022 were up 33 bps from the prior quarter and up 63 bps from the same quarter in the prior year. Earning assets declined $255.7 million, or 2.3%, from the prior quarter and were comparable to the same quarter in the prior year. The following are highlights comparing the third quarter of 2022 to the prior quarter:

      • Loan yields increased 25 bps to 4.34% for the quarter. Excluding PPP loans, loan yields increased 28 bps from the prior quarter.
      • The average balances of investment securities increased $5.9 million and yields increased 13 bps.
      • The average balances of short-term interest-bearing accounts decreased $362.1 million resulting from the incremental deployment of excess liquidity into loans and investment securities and modestly lower deposit balances.
    • Total cost of deposits was 0.09% for the third quarter of 2022, up 2 bps from the prior quarter and down 1 bp from the same period in the prior year.
    • The cost of total interest-bearing liabilities for the three months ended September 30, 2022 was 0.29%, up 6 bps from the prior quarter and up 2 bps from the third quarter of 2021.

    Credit Quality and Allowance for Credit Losses

    • Net charge-offs to total average loans was 7 bps compared to 4 bps in the prior quarter and 11 bps in the third quarter of 2021. Recoveries in the third quarter of 2022 were $3.4 million compared to $3.3 million in the prior quarter and $2.7 million in the third quarter of 2021.
    • Nonperforming assets to total assets was 0.19% compared to 0.22% at June 30, 2022 and 0.33% at September 30, 2021. Past due loans to total loans decreased to 0.30% as of September 30, 2022 from 0.40% in the prior quarter, primarily due to one commercial credit which returned to current status in early July.
    • Provision expense for the three months ended September 30, 2022 was $4.5 million with net charge-offs of $1.3 million. Provision expense was $0.1 million higher than the second quarter of 2022 and $7.8 million higher than the third quarter of 2021. The increase in provision expense from the third quarter of 2021 was driven both by loan growth and an increase in the level of allowance for loan losses resulting from less favorable economic forecasts in the current year relative to improving economic forecasts in the prior year, partly offset by a lower level of net charge-offs.
    • The allowance for loan losses was $96.8 million, or 1.22% (1.23% excluding PPP loans and related allowance) of total loans, at September 30, 2022, compared to 1.20% (1.21% excluding PPP loans and related allowance) of total loans at June 30, 2022 and 1.23% (1.28% excluding PPP loans and related allowance) of total loans at September 30, 2021. The increase in the level of allowance for loan losses from the prior quarter was primarily due to the increase in loan balances and the modest deterioration in the forecast of economic conditions, which had an impact on the level of expected credit losses.
    • The reserve for unfunded loan commitments increased to $5.3 million at September 30, 2022 compared to the prior quarter at $5.1 million and compared to the prior year quarter at $5.3 million.

    Noninterest Income

    • Total noninterest income, excluding securities gains (losses), was $37.3 million for the three months ended September 30, 2022, down $4.9 million from the second quarter and down $3.1 million from the prior year’s third quarter.
    • Card services income was lower than the prior quarter and the third quarter of 2021 driven by the $3.8 million ($0.07 per diluted share) impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act.
    • Retirement plan administration fees were lower than the prior quarter driven by market decline and lower activity-based fees and higher than the third quarter of 2021 driven by higher activity-based fees and organic growth.
    • Wealth management fees were higher than the prior quarter due to seasonal tax preparation services and lower than the third quarter of 2021 driven primarily by market performance.
    • Other income decreased from the prior quarter and the third quarter of 2021 driven by lower commercial loan swap fees.

    Noninterest Expense

    • Total noninterest expense for the third quarter of 2022 was up 0.8% from the previous quarter and up 5.2% from the third quarter of 2021.
    • Salaries and benefits increased from the prior quarter due to one additional day of payroll in the third quarter and higher levels of incentive compensation accruals. The increase from the third quarter of 2021 was driven by increased salaries and wages, including merit pay increases and higher levels of incentive compensation accruals.
    • Technology and data services increased from the prior quarter and the third quarter of 2021 due to continued investment in digital platform solutions.
    • Other expenses decreased from the linked second quarter of 2022 due to seasonal timing of certain expenditures. The third quarter of 2021 also included $2.3 million of estimated litigation settlement costs.

    Income Taxes

    • The effective tax rate was 22.8% for the third quarter of 2022 compared to 22.5% for the second quarter of 2022 and 22.8% for the third quarter of 2021.

    Capital

    • Capital ratios remain strong with tangible common equity to tangible assets1 at 7.64%. Tangible book value per share2 was $20.25 at September 30, 2022, $20.99 at June 30, 2022 and $21.95 at September 30, 2021.
    • Stockholders’ equity decreased $93.9 million from December 31, 2021 driven by the $160.9 million decrease in AOCI due to the change in the market value of securities available for sale, dividends declared of $36.9 million and the repurchase of common stock of $14.7 million, partly offset by net income generation of $115.9 million.
    • September 30, 2022, CET1 capital ratio of 12.17%, leverage ratio of 10.21% and total risk-based capital ratio of 15.50%.

    Dividend

    • The Board of Directors approved a fourth-quarter cash dividend of $0.30 per share at a meeting held yesterday, an increase of $0.02, or 7.1%, from the amount paid in the fourth quarter of 2021. 2022 is the tenth consecutive year of dividend increases by the Company. The dividend will be paid on December 15, 2022 to stockholders of record as of December 1, 2022.

    Other Events

    • On August 1, 2022, NBT’s subsidiary, NBT Insurance Agency, LLC, a full-service insurance agency, completed the acquisition of substantially all of the assets of Harrison A. Rogers Agency, Inc. (“H.A. Rogers”). H.A. Rogers is a New York based small personal and commercial lines property and casualty insurance agency. This is a strategic regional insurance expansion into the northern New York market where NBT Bank has a long-established presence.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Wednesday, October 26, 2022, to review third quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.64 billion at September 30, 2022. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

    Forward-Looking Statements

    This press release contains 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 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 Federal Reserve Board (“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 perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions 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, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (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 Financial Accounting Standards Board (“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; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

    One of the more significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, the impact of the COVID-19 pandemic on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others.

    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 press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, 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.

    Contact:   
    John H. Watt, Jr., President and CEO
    Scott A. Kingsley, Executive Vice President and CFO
    NBT Bancorp Inc.
    52 South Broad Street
    Norwich, NY 13815
    607-337-6589



    NBT Bancorp Inc. and Subsidiaries     
    Selected Financial Data     
    (unaudited, dollars in thousands except per share data)    
          
      2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Profitability:     
    Diluted earnings per share$ 0.90 $0.88 $0.90 $0.86 $0.86 
    Weighted average diluted common shares outstanding 43,110,932  43,092,851  43,385,451  43,574,539  43,631,497 
    Return on average assets3 1.33%  1.28%  1.32%  1.23%  1.26% 
    Return on average equity3 12.87%  12.73%  12.78%  11.89%  12.04% 
    Return on average tangible common equity1 3 17.12%  17.00%  16.87%  15.70%  15.97% 
    Net interest margin1 3 3.51%  3.21%  2.95%  3.08%  2.88% 
          
     9 Months Ended September 30,
         
      2022  2021    
    Profitability:     
    Diluted earnings per share$ 2.68 $2.69    
    Weighted average diluted common shares outstanding 43,194,037  43,768,647    
    Return on average assets3 1.31%  1.37%    
    Return on average equity3 12.79%  13.00%    
    Return on average tangible common equity1 3 17.00%  17.35%    
    Net interest margin1 3 3.22%  3.01%    
          
      2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Balance sheet data:     
    Short-term interest-bearing accounts$ 97,303 $328,593 $913,315 $1,111,296 $1,131,074 
    Securities available for sale 1,556,501  1,619,356  1,662,697  1,687,361  1,576,030 
    Securities held to maturity 929,541  936,512  895,005  733,210  683,103 
    Net loans 7,807,984  7,684,081  7,559,826  7,406,459  7,473,442 
    Total assets 11,640,742  11,720,459  12,147,833  12,012,111  11,994,411 
    Total deposits 9,918,751  10,028,708  10,461,623  10,234,469  10,195,178 
    Total borrowings 277,889  265,796  278,788  311,476  313,311 
    Total liabilities 10,484,196  10,531,903  10,945,583  10,761,658  10,752,954 
    Stockholders' equity 1,156,546  1,188,556  1,202,250  1,250,453  1,241,457 
          
    Capital:     
    Equity to assets 9.94%  10.14%  9.90%  10.41%  10.35% 
    Tangible equity ratio1 7.64%  7.87%  7.70%  8.20%  8.13% 
    Book value per share$ 27.00 $27.75 $27.96 $28.97 $28.65 
    Tangible book value per share2$ 20.25 $20.99 $21.25 $22.26 $21.95 
    Leverage ratio 10.21%  9.77%  9.52%  9.41%  9.47% 
    Common equity tier 1 capital ratio 12.17%  12.14%  12.23%  12.25%  12.20% 
    Tier 1 capital ratio 13.27%  13.27%  13.39%  13.43%  13.39% 
    Total risk-based capital ratio 15.50%  15.50%  15.64%  15.73%  15.74% 
    Common stock price (end of period)$ 37.95 $37.59 $36.13 $38.52 $36.12 
          
          



    NBT Bancorp Inc. and Subsidiaries     
    Asset Quality and Consolidated Loan Balances     
    (unaudited, dollars in thousands)     
          
      2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Asset quality:     
    Nonaccrual loans$ 19,098 $23,673 $25,812 $30,285 $35,737 
    90 days past due and still accruing 2,732  2,096  1,944  2,458  2,940 
    Total nonperforming loans 21,830  25,769  27,756  32,743  38,677 
    Other real estate owned -  -  -  167  859 
    Total nonperforming assets 21,830  25,769  27,756  32,910  39,536 
    Allowance for loan losses 96,800  93,600  90,000  92,000  93,000 
          
    Asset quality ratios (total):     
    Allowance for loan losses to total loans 1.22%  1.20%  1.18%  1.23%  1.23% 
    Total nonperforming loans to total loans 0.28%  0.33%  0.36%  0.44%  0.51% 
    Total nonperforming assets to total assets 0.19%  0.22%  0.23%  0.27%  0.33% 
    Allowance for loan losses to total nonperforming loans 443.43%  363.23%  324.25%  280.98%  240.45% 
    Past due loans to total loans4 0.30%  0.40%  0.24%  0.29%  0.46% 
    Net charge-offs to average loans3 0.07%  0.04%  0.14%  0.22%  0.11% 
          
    Asset quality ratios (excluding paycheck protection program):    
    Allowance for loan losses to total loans 1.23%  1.21%  1.18%  1.24%  1.28% 
    Total nonperforming loans to total loans 0.28%  0.33%  0.37%  0.44%  0.53% 
    Total nonperforming assets to total assets 0.19%  0.22%  0.23%  0.28%  0.34% 
    Allowance for loan losses to total nonperforming loans 443.43%  363.27%  324.24%  280.96%  240.42% 
    Past due loans to total loans4 0.29%  0.40%  0.25%  0.29%  0.48% 
    Net charge-offs to average loans3 0.07%  0.04%  0.14%  0.22%  0.12% 
          
      2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Allowance for loan losses as a percentage of loans by segment:    
    Commercial & industrial 0.80%  0.75%  0.66%  0.78%  0.83% 
    Commercial real estate 0.88%  0.89%  0.79%  0.78%  0.93% 
    Paycheck protection program 0.01%  0.01%  0.01%  0.01%  0.01% 
    Residential real estate 0.74%  0.79%  0.88%  0.92%  0.93% 
    Auto 0.78%  0.79%  0.76%  0.79%  0.78% 
    Other consumer 3.95%  3.98%  4.14%  4.49%  4.57% 
    Total 1.22%  1.20%  1.18%  1.23%  1.23% 
    Total excluding PPP loans 1.23%  1.21%  1.18%  1.24%  1.28% 
          
      2022  2021 
    Loans by line of business: 3rd Q2nd Q1st Q4th Q3rd Q
    Commercial & industrial$ 1,258,871 $1,298,072 $1,214,834 $1,155,240 $1,148,176 
    Commercial real estate 2,724,728  2,670,633  2,709,611  2,655,367  2,638,762 
    Paycheck protection program 3,328  17,286  50,977  101,222  276,195 
    Residential real estate mortgages 1,626,528  1,606,188  1,584,551  1,571,232  1,549,684 
    Indirect auto 952,757  936,516  890,643  859,454  873,860 
    Residential solar 728,898  599,565  514,526  440,016  365,299 
    Home equity 313,557  313,395  319,180  330,357  339,316 
    Other consumer 296,117  336,026  365,504  385,571  375,150 
    Total loans$ 7,904,784 $7,777,681 $7,649,826 $7,498,459 $7,566,442 
          
    PPP income recognized$ 320 $1,301 $1,976 $7,545 $2,861 
    PPP unamortized fees$ 108 $414 $1,629 $3,420 $10,536 
          



    NBT Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets
    (unaudited, dollars in thousands)
       
     September 30,December 31,
    Assets20222021
    Cash and due from banks$ 223,755 $157,775 
    Short-term interest-bearing accounts 97,303  1,111,296 
    Equity securities, at fair value 30,428  33,550 
    Securities available for sale, at fair value 1,556,501  1,687,361 
    Securities held to maturity (fair value $814,100 and $735,260, respectively) 929,541  733,210 
    Federal Reserve and Federal Home Loan Bank stock 24,892  25,098 
    Loans held for sale 87  830 
    Loans 7,904,784  7,498,459 
    Less allowance for loan losses 96,800  92,000 
    Net loans$ 7,807,984 $7,406,459 
    Premises and equipment, net 69,338  72,093 
    Goodwill 281,204  280,541 
    Intangible assets, net 7,879  8,927 
    Bank owned life insurance 230,990  228,238 
    Other assets 380,840  266,733 
    Total assets$ 11,640,742 $12,012,111 
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$ 3,714,342 $3,689,556 
    Savings, NOW and money market 5,758,736  6,043,441 
    Time 445,673  501,472 
    Total deposits$ 9,918,751 $10,234,469 
    Short-term borrowings 74,554  97,795 
    Long-term debt 3,322  13,995 
    Subordinated debt, net 98,817  98,490 
    Junior subordinated debt 101,196  101,196 
    Other liabilities 287,556  215,713 
    Total liabilities$ 10,484,196 $10,761,658 
       
    Total stockholders' equity$ 1,156,546 $1,250,453 
       
    Total liabilities and stockholders' equity$ 11,640,742 $12,012,111 
       



    NBT Bancorp Inc. and Subsidiaries
    Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
         
     Three Months EndedNine Months Ended
     September 30,September 30,
      2022  2021  2022  2021 
    Interest, fee and dividend income    
    Interest and fees on loans$ 85,266 $72,817 $ 237,148 $222,705 
    Securities available for sale 7,665  5,898  21,822  17,204 
    Securities held to maturity 4,854  2,976  12,532  9,454 
    Other 1,429  524  3,396  1,206 
    Total interest, fee and dividend income$ 99,214 $82,215 $ 274,898 $250,569 
    Interest expense    
    Deposits$ 2,233 $2,548 $ 5,831 $8,582 
    Short-term borrowings 84  28  113  130 
    Long-term debt 20  89  140  301 
    Subordinated debt 1,360  1,359  4,078  4,077 
    Junior subordinated debt 1,039  517  2,325  1,572 
    Total interest expense$ 4,736 $4,541 $ 12,487 $14,662 
    Net interest income$ 94,478 $77,674 $ 262,411 $235,907 
    Provision for loan losses 4,484  (3,342) 9,470  (11,354)
    Net interest income after provision for loan losses$ 89,994 $81,016 $ 252,941 $247,261 
    Noninterest income    
    Service charges on deposit accounts$ 3,581 $3,489 $ 11,032 $9,544 
    Card services income 5,654  9,101  24,100  25,835 
    Retirement plan administration fees 11,496  10,495  37,451  30,372 
    Wealth management 8,402  8,783  25,294  25,099 
    Insurance services 3,892  3,720  11,258  10,689 
    Bank owned life insurance income 1,560  1,548  4,625  4,588 
    Net securities (losses) gains (148) (100) (914) 568 
    Other 2,735  3,293  8,641  9,988 
    Total noninterest income$ 37,172 $40,329 $ 121,487 $116,683 
    Noninterest expense    
    Salaries and employee benefits$ 48,371 $44,190 $ 140,595 $128,462 
    Technology and data services 9,096  8,421  26,588  26,154 
    Occupancy 6,481  6,154  19,761  19,413 
    Professional fees and outside services 3,817  3,784  11,999  11,403 
    Office supplies and postage 1,469  1,364  4,441  4,478 
    FDIC expense 787  772  2,399  2,243 
    Advertising 559  583  1,943  1,502 
    Amortization of intangible assets 544  663  1,725  2,157 
    Loan collection and other real estate owned, net 549  706  1,690  1,959 
    Other 5,021  6,232  13,815  14,405 
    Total noninterest expense$ 76,694 $72,869 $ 224,956 $212,176 
    Income before income tax expense$ 50,472 $48,476 $ 149,472 $151,768 
    Income tax expense 11,499  11,043  33,598  34,193 
    Net income$ 38,973 $37,433 $ 115,874 $117,575 
    Earnings Per Share    
    Basic$ 0.91 $0.86 $ 2.70 $2.71 
    Diluted$ 0.90 $0.86 $ 2.68 $2.69 
         



    NBT Bancorp Inc. and Subsidiaries
    Quarterly Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
          
      2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 85,266 $78,539 $73,343 $79,470 $72,817 
    Securities available for sale 7,665  7,317  6,840  6,101  5,898 
    Securities held to maturity 4,854  4,185  3,493  3,097  2,976 
    Other 1,429  1,442  525  639  524 
    Total interest, fee and dividend income$ 99,214 $91,483 $84,201 $89,307 $82,215 
    Interest expense     
    Deposits$ 2,233 $1,756 $1,842 $2,132 $2,548 
    Short-term borrowings 84  13  16  28  28 
    Long-term debt 20  33  87  88  89 
    Subordinated debt 1,360  1,359  1,359  1,360  1,359 
    Junior subordinated debt 1,039  737  549  518  517 
    Total interest expense$ 4,736 $3,898 $3,853 $4,126 $4,541 
    Net interest income$ 94,478 $87,585 $80,348 $85,181 $77,674 
    Provision for loan losses 4,484  4,390  596  3,097  (3,342)
    Net interest income after provision for loan losses$ 89,994 $83,195 $79,752 $82,084 $81,016 
    Noninterest income     
    Service charges on deposit accounts$ 3,581 $3,763 $3,688 $3,804 $3,489 
    Card services income 5,654  9,751  8,695  8,847  9,101 
    Retirement plan administration fees 11,496  12,676  13,279  11,816  10,495 
    Wealth management 8,402  8,252  8,640  8,619  8,783 
    Insurance services 3,892  3,578  3,788  3,394  3,720 
    Bank owned life insurance income 1,560  1,411  1,654  1,629  1,548 
    Net securities (losses) (148) (587) (179) (2) (100)
    Other 2,735  2,812  3,094  3,004  3,293 
    Total noninterest income$ 37,172 $41,656 $42,659 $41,111 $40,329 
    Noninterest expense     
    Salaries and employee benefits$ 48,371 $46,716 $45,508 $44,118 $44,190 
    Technology and data services 9,096  8,945  8,547  8,563  8,421 
    Occupancy 6,481  6,487  6,793  6,635  6,154 
    Professional fees and outside services 3,817  3,906  4,276  4,903  3,784 
    Office supplies and postage 1,469  1,548  1,424  1,528  1,364 
    FDIC expense 787  810  802  798  772 
    Advertising 559  730  654  1,019  583 
    Amortization of intangible assets 544  545  636  651  663 
    Loan collection and other real estate owned, net 549  757  384  956  706 
    Other 5,021  5,675  3,119  5,934  6,232 
    Total noninterest expense$ 76,694 $76,119 $72,143 $75,105 $72,869 
    Income before income tax expense$ 50,472 $48,732 $50,268 $48,090 $48,476 
    Income tax expense 11,499  10,957  11,142  10,780  11,043 
    Net income$ 38,973 $37,775 $39,126 $37,310 $37,433 
    Earnings Per Share     
    Basic$ 0.91 $0.88 $0.91 $0.86 $0.86 
    Diluted$ 0.90 $0.88 $0.90 $0.86 $0.86 
          



    NBT Bancorp Inc. and Subsidiaries           
    Average Quarterly Balance Sheets           
    (unaudited, dollars in thousands)           
                
      Average BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / Rates
      Q3 - 2022Q2 - 2022Q1 - 2022Q4 - 2021Q3 - 2021
    Assets           
    Short-term interest-bearing accounts $ 191,4632.51%$553,5480.82%$990,3190.17%$1,145,7940.16%$1,014,1200.16%
    Securities taxable1  2,491,3151.83% 2,439,9601.74% 2,284,5781.67% 2,081,7961.57% 1,923,7001.63%
    Securities tax-exempt 1 5  211,3062.47% 256,7991.83% 258,5131.84% 257,3201.85% 246,6851.97%
    FRB and FHLB stock  25,1823.47% 24,9835.03% 25,0261.98% 25,1492.74% 25,1541.91%
    Loans1 6  7,808,0254.34% 7,707,7304.09% 7,530,6743.95% 7,507,1654.20% 7,517,8393.84%
    Total interest-earning assets $ 10,727,2913.68%$10,983,0203.35%$11,089,1103.09%$11,017,2243.23%$10,727,4983.05%
    Other assets  887,378  883,498  947,578  982,136  1,019,797 
    Total assets $ 11,614,669 $11,866,518  $12,036,688  $11,999,360  $11,747,295  
    Liabilities and stockholders' equity           
    Money market deposit accounts $ 2,332,3410.15%$2,577,3670.14%$2,720,3380.15%$2,678,4770.16%$2,580,5700.19%
    NOW deposit accounts  1,548,1150.21% 1,580,1320.07% 1,583,0910.05% 1,551,8460.05% 1,442,6780.05%
    Savings deposits  1,854,1220.03% 1,845,1280.03% 1,794,5490.03% 1,725,0040.05% 1,691,5390.05%
    Time deposits  455,1680.35% 478,5310.37% 494,6320.40% 537,8750.46% 565,2160.62%
    Total interest-bearing deposits $ 6,189,7460.14%$6,481,1580.11%$6,592,6100.11%$6,493,2020.13%$6,280,0030.16%
    Federal funds purchased  1,5223.39% --  --  65-  -- 
    Repurchase agreements  69,0480.10% 60,0610.09% 72,7680.09% 97,3890.11% 99,7030.11%
    Short-term borrowings  6,4403.33% --  --  1-  -- 
    Long-term debt  3,3312.38% 5,3362.48% 13,9792.52% 14,0042.49% 14,0292.52%
    Subordinated debt, net  98,7485.46% 98,6425.53% 98,5315.59% 98,4225.48% 98,3115.48%
    Junior subordinated debt  101,1964.07% 101,1962.92% 101,1962.20% 101,1962.03% 101,1962.03%
    Total interest-bearing liabilities $ 6,470,0310.29%$6,746,3930.23%$6,879,0840.23%$6,804,2790.24%$6,593,2420.27%
    Demand deposits  3,708,131  3,711,049  3,710,124  3,719,070  3,676,883 
    Other liabilities  234,851  218,491  206,292  231,260  244,125 
    Stockholders' equity  1,201,656  1,190,585  1,241,188  1,244,751  1,233,045 
    Total liabilities and stockholders' equity $ 11,614,669 $11,866,518  $12,036,688  $11,999,360  $11,747,295  
    Interest rate spread  3.39% 3.12% 2.86% 2.99% 2.78%
    Net interest margin (FTE)1  3.51% 3.21% 2.95% 3.08% 2.88%
                



    NBT Bancorp Inc. and Subsidiaries
    Average Year-to-Date Balance Sheets
    (unaudited, dollars in thousands)
            
      Average Yield/Average Yield/
      BalanceInterestRates BalanceInterestRates
    Nine Months Ended September 30,  2022  2021 
    Assets       
    Short-term interest-bearing accounts $ 575,517$ 2,7420.64%$860,067$7630.12%
    Securities taxable1  2,406,042 31,4601.75% 1,852,963 23,7111.71%
    Securities tax-exempt 1 5  242,033 3,6642.02% 208,438 3,7302.39%
    FRB and FHLB stock  25,064 6543.49% 25,290 4432.34%
    Loans1 6  7,683,159 237,2904.13% 7,555,276 222,8213.94%
    Total interest-earning assets $ 10,931,815$ 275,8103.37%$10,502,034$251,4683.20%
    Other assets  905,931   984,372  
    Total assets $ 11,837,746  $11,486,406  
    Liabilities and stockholders' equity       
    Money market deposit accounts $ 2,541,927$ 2,8010.15%$2,557,172$4,0220.21%
    NOW deposit accounts  1,570,318 1,2600.11% 1,419,102 5310.05%
    Savings deposits  1,831,485 4420.03% 1,633,941 6250.05%
    Time deposits  475,966 1,3280.37% 590,385 3,4040.77%
    Total interest-bearing deposits $ 6,419,696$ 5,8310.12%$6,200,600$8,5820.19%
    Federal funds purchased  513 133.39% - -- 
    Repurchase agreements  67,279 460.09% 101,574 1040.14%
    Short-term borrowings  2,170 543.33% 1,740 262.00%
    Long-term debt  7,509 1402.49% 15,976 3012.52%
    Subordinated debt, net  98,641 4,0785.53% 98,204 4,0775.55%
    Junior subordinated debt  101,196 2,3253.07% 101,196 1,5722.08%
    Total interest-bearing liabilities $ 6,697,004$ 12,4870.25%$6,519,290$14,6620.30%
    Demand deposits  3,709,761   3,514,005  
    Other liabilities  219,983   243,525  
    Stockholders' equity  1,210,998   1,209,586  
    Total liabilities and stockholders' equity $ 11,837,746  $11,486,406  
    Net interest income (FTE)1  $ 263,323  $236,806 
    Interest rate spread   3.12%  2.90%
    Net interest margin (FTE)1   3.22%  3.01%
    Taxable equivalent adjustment  $ 912  $899 
    Net interest income  $ 262,411  $235,907 
            



          
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
          
    Non-GAAP measures     
    (unaudited, dollars in thousands)     
          
    Pre-provision net revenue ("PPNR") 2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Net income$ 38,973 $37,775 $39,126 $37,310 $37,433 
    Income tax expense 11,499  10,957  11,142  10,780  11,043 
    Provision for loan losses 4,484  4,390  596  3,097  (3,342)
    FTE adjustment 337  290  285  292  298 
    Net securities losses 148  587  179  2  100 
    Provision for unfunded loan commitments reserve 225  240  (260) (250) (470)
    Nonrecurring expense -  -  (172) 250  2,288 
    PPNR$ 55,666 $54,239 $50,896 $51,481 $47,350 
          
    Average assets$ 11,614,669 $11,866,518 $12,036,688 $11,999,360 $11,747,295 
          
    Return on average assets3 1.33%  1.28%  1.32%  1.23%  1.26% 
    PPNR return on average assets3 1.90%  1.83%  1.71%  1.70%  1.60% 
          
     9 Months Ended September 30,   
      2022  2021    
    Net income$ 115,874 $117,575    
    Income tax expense 33,598  34,193    
    Provision for loan losses 9,470  (11,354)   
    FTE adjustment 912  899    
    Net securities losses (gains) 914  (568)   
    Provision for unfunded loan commitments reserve 205  (1,050)   
    Nonrecurring expense (172) 4,168    
    PPNR$ 160,801 $143,863    
          
    Average Assets$ 11,837,746 $11,486,406    
          
    Return on average assets3 1.31%  1.37%    
    PPNR return on average assets3 1.82%  1.67%    
          
    PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense.     
          
          
    FTE adjustment 2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Net interest income$ 94,478 $87,585 $80,348 $85,181 $77,674 
    Add: FTE adjustment 337  290  285  292  298 
    Net interest income (FTE)$ 94,815 $87,875 $80,633 $85,473 $77,972 
    Average earning assets$ 10,727,291 $10,983,020 $11,089,110 $11,017,224 $10,727,498 
    Net interest margin (FTE)3 3.51%  3.21%  2.95%  3.08%  2.88% 
          
     9 Months Ended September 30,   
      2022  2021    
    Net interest income$ 262,411 $235,907    
    Add: FTE adjustment 912  899    
    Net interest income (FTE)$ 263,323 $236,806    
    Average earning assets$ 10,931,815 $10,502,034    
    Net interest margin (FTE)3 3.22%  3.01%    
          
    Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.
          



          
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
          
    Non-GAAP measures     
    (unaudited, dollars in thousands)     
          
    Tangible equity to tangible assets 2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Total equity$ 1,156,546 $1,188,556 $1,202,250 $1,250,453 $1,241,457 
    Intangible assets 289,083  289,259  288,832  289,468  290,119 
    Total assets$ 11,640,742 $11,720,459 $12,147,833 $12,012,111 $11,994,411 
    Tangible equity to tangible assets 7.64%  7.87%  7.70%  8.20%  8.13% 
          
    Return on average tangible common equity 2022  2021 
     3rd Q2nd Q1st Q4th Q3rd Q
    Net income$ 38,973 $37,775 $39,126 $37,310 $37,433 
    Amortization of intangible assets (net of tax) 408  409  477  488  497 
    Net income, excluding intangibles amortization$ 39,381 $38,184 $39,603 $37,798 $37,930 
          
    Average stockholders' equity$ 1,201,656 $1,190,585 $1,241,188 $1,244,751 $1,233,045 
    Less: average goodwill and other intangibles 289,296  289,584  289,218  289,834  290,492 
    Average tangible common equity$ 912,360 $901,001 $951,970 $954,917 $942,553 
    Return on average tangible common equity3 17.12%  17.00%  16.87%  15.70%  15.97% 
          
     9 Months Ended September 30,   
      2022  2021    
    Net income$ 115,874 $117,575    
    Amortization of intangible assets (net of tax) 1,294  1,618    
    Net income, excluding intangibles amortization$ 117,168 $119,193    
          
    Average stockholders' equity$ 1,210,998 $1,209,586    
    Less: average goodwill and other intangibles 289,366  291,177    
    Average tangible common equity$ 921,632 $918,409    
    Return on average tangible common equity3 17.00%  17.35%    
          
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. 
    3Annualized.     
    4Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    5Securities are shown at average amortized cost.    
    6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
          

     



     

     


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