8-K
NBT BANCORP INC (NBTB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 25, 2022
NBT BANCORP INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-14703 | 16-1268674 |
|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (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
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of class | Trading Symbol | Name of 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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
| Item 2.02 | Results of Operations and Financial Condition |
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On October 25, 2022, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended September 30, 2022. That press release is furnished as Exhibit 99.1 hereto. A conference call will be held at 8:30 a.m. Eastern Time on Wednesday, October 26, 2022, to review the third quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Event Calendar page of the Company’s website at www.nbtbancorp.com.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (a) | Not applicable. |
| --- | --- |
| (b) | Not applicable. |
| --- | --- |
| (c) | Not applicable. |
| --- | --- |
| (d) | Exhibits. |
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| Exhibit No. | Description |
| --- | --- |
| 99.1 | Press release of NBT Bancorp Inc. October 25, 2022 |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
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 hereunto duly authorized.
| NBT BANCORP INC. | ||
|---|---|---|
| Date: October 25, 2022 | By: | /s/ Scott A. Kingsley |
| Scott A. Kingsley | ||
| Executive Vice President | ||
| and Chief Financial Officer |
Exhibit 99.1
1
| FOR IMMEDIATE RELEASE<br><br> <br>ATTENTION: FINANCIAL AND BUSINESS EDITORS | |
|---|---|
| Contact: | John H. Watt, Jr., President and CEO<br><br> <br>Scott A. Kingsley, Executive Vice President and CFO<br><br> <br>NBT Bancorp Inc.<br><br> <br>52 South Broad Street<br><br> <br>Norwich, NY 13815<br><br> <br>607-337-6589 |
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NBT BANCORP INC. ANNOUNCES THIRD QUARTER NET INCOME OF $39.0 MILLION ($0.90 PER DILUTED COMMON SHARE); APPROVES DIVIDEND
NORWICH, NY (October 25, 2022) – 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.”
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Third Quarter Financial Highlights
| Net Income | ◾ Net income of $39.0 million<br><br> <br>◾ Diluted earnings per share of $0.90 |
|---|---|
| Net Interest Income / NIM | ◾ Net interest income on a fully<br> taxable equivalent (“FTE”) basis was $94.8 million^1^<br><br> <br>◾ Net interest margin (“NIM”) on a FTE<br> basis was 3.51%^1^, up 30 basis points (“bps”) from the prior quarter, due primarily to higher yields on earning assets<br><br> <br>◾ Total cost of deposits of 0.09%, up 2<br> bps from the prior quarter |
| Noninterest Income | ◾ Noninterest income was $37.3 million,<br> excluding securities gains (losses) and was 28.3% of total revenue |
| Pre-Provision Net<br><br> <br>Revenue (“PPNR”) | ◾ PPNR^1^ was $55.7 million<br> compared to $54.2 million in the second quarter of 2022 and $47.4 million in the third quarter of 2021 |
| Loans and Credit<br><br> <br>Quality | ◾ Period<br> end total loans were $7.90 billion at September 30, 2022, up 9.1%, annualized, excluding impact of PPP loans<br><br> <br>◾ Period end loans increased $504.2<br> 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<br><br> <br>◾ Net charge-offs to average loans was<br> 0.07%, annualized<br><br> <br>◾ Nonperforming loans to total loans<br> was 0.28%, down from 0.33% in the prior quarter<br><br> <br>◾ Allowance for loan losses to total<br> 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<br> for the fourth quarter, which was a $0.02 per share, or 7.1%, increase from the fourth quarter of 2021<br><br> <br>◾ Stockholders’ equity decreased $93.9<br> 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<br> repurchase of common stock of $14.7 million, partly offset by net income generation of $115.9 million<br><br> <br>◾ Tangible book value per share^2^<br> 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<br><br> <br>◾ Tangible equity to assets of 7.64%^1^<br><br> <br>◾ CET1 ratio of 12.17%; Leverage ratio<br> of 10.21% |
Loans
| ◾ | Period end total loans were $7.90 billion at September 30, 2022 and $7.50 billion at December 31, 2021. |
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| ◾ | 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<br> loans increased $69.4 million to $2.72 billion; and total consumer loans increased $331.2 million to $3.92 billion. |
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| ◾ | 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<br> 2022. The following PPP loan activity occurred during the third quarter of 2022: |
|---|---|
| o | $14.2 million of loans forgiven. |
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| o | $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. |
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| ◾ | Commercial line of credit utilization rate was 23% at September 30, 2022 and June 30, 2022, compared to 21% at September 30, 2021. |
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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<br> 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<br> off-balance sheet, Company-designated short-term treasury product. |
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| ◾ | Loan to deposit ratio was 79.7% at September 30, 2022, compared to 73.3% at December 31, 2021. |
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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<br> 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. |
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| ◾ | 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<br> yields partly offset by higher cost of interest-bearing liabilities. |
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| ◾ | 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<br> $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: |
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| o | Loan yields increased 25 bps to 4.34% for the quarter. Excluding PPP loans, loan yields increased 28 bps from the prior quarter. |
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| o | The average balances of investment securities increased $5.9 million and yields increased 13 bps. |
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| o | 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<br> and modestly lower deposit balances. |
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| ◾ | 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. |
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| ◾ | 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. |
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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<br> million compared to $3.3 million in the prior quarter and $2.7 million in the third quarter of 2021. |
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4
| ◾ | 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,<br> 2022 from 0.40% in the prior quarter, primarily due to one commercial credit which returned to current status in early July. |
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| ◾ | 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<br> 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<br> 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. |
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| ◾ | 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<br> 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<br> 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. |
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| ◾ | 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<br> million. |
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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<br> million from the prior year’s third quarter. |
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| ◾ | 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<br> statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act. |
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| ◾ | 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<br> activity-based fees and organic growth. |
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| ◾ | 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. |
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| ◾ | Other income decreased from the prior quarter and the third quarter of 2021 driven by lower commercial loan swap fees. |
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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. |
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| ◾ | 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<br> the third quarter of 2021 was driven by increased salaries and wages, including merit pay increases and higher levels of incentive compensation accruals. |
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5
| ◾ | Technology and data services increased from the prior quarter and the third quarter of 2021 due to continued investment in digital platform solutions. |
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| ◾ | Other expenses decreased from the linked second quarter of 2022 due to seasonal timing of certain expenditures. The third quarter of 2021 also included<br> $2.3 million of estimated litigation settlement costs. |
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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. |
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Capital
| ◾ | Capital ratios remain strong with tangible common equity to tangible assets^1^ at 7.64%. Tangible book value per share^2^ was $20.25 at September 30, 2022, $20.99 at<br> June 30, 2022 and $21.95 at September 30, 2021. |
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| ◾ | 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<br> 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. |
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| ◾ | September 30, 2022, CET1 capital ratio of 12.17%, leverage ratio of 10.21% and total risk-based capital ratio of 15.50%. |
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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<br> 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. |
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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<br> 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<br> long-established presence. |
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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.
6
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.
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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.
8
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 assets^3^ | 1.33 | % | 1.28 | % | 1.32 | % | 1.23 | % | 1.26 | % | |||||
| Return on average equity^3^ | 12.87 | % | 12.73 | % | 12.78 | % | 11.89 | % | 12.04 | % | |||||
| Return on average tangible common equity^1 3^ | 17.12 | % | 17.00 | % | 16.87 | % | 15.70 | % | 15.97 | % | |||||
| Net interest margin^1 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 assets^3^ | 1.31 | % | 1.37 | % | |||||||||||
| Return on average equity^3^ | 12.79 | % | 13.00 | % | |||||||||||
| Return on average tangible common equity^1 3^ | 17.00 | % | 17.35 | % | |||||||||||
| Net interest margin^1 3^ | 3.22 | % | 3.01 | % | |||||||||||
| 2022 | 2021 | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 ratio^1^ | 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 share^2^ | $ | 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 |
9
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Quality and Consolidated Loan Balances | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 loans^4^ | 0.30 | % | 0.40 | % | 0.24 | % | 0.29 | % | 0.46 | % | |||||
| Net charge-offs to average loans^3^ | 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 loans^4^ | 0.29 | % | 0.40 | % | 0.25 | % | 0.29 | % | 0.48 | % | |||||
| Net charge-offs to average loans^3^ | 0.07 | % | 0.04 | % | 0.14 | % | 0.22 | % | 0.12 | % | |||||
| 2022 | 2021 | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 Q | 2nd Q | 1st Q | 4th Q | 3rd 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 |
10
| NBT Bancorp Inc. and Subsidiaries<br><br> <br>Consolidated Balance Sheets | |||
|---|---|---|---|
| (unaudited, dollars in thousands) | |||
| December 31,<br><br> <br>2021 | |||
| --- | --- | --- | --- |
| Assets | |||
| 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 |
All values are in US Dollars.
11
| NBT Bancorp Inc. and Subsidiaries<br><br> <br>Consolidated Statements of Income | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited, dollars in thousands except per share data) | ||||||||||||
| Three Months Ended<br><br> <br>September 30, | Nine Months Ended<br><br> <br>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 |
12
| NBT Bancorp Inc. and Subsidiaries<br><br> <br>Quarterly Consolidated Statements of Income | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited, dollars in thousands except per share data) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 |
13
| NBT Bancorp Inc. and Subsidiaries<br><br> <br>Average Quarterly Balance Sheets | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited, dollars in thousands) | ||||||||||||||||||||
| Average Balance | Yield /<br><br> <br>Rates | Average Balance | Yield /<br><br> <br>Rates | Average Balance | Yield /<br><br> <br>Rates | Average Balance | Yield /<br><br> <br>Rates | Average Balance | Yield /<br><br> <br>Rates | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Q3 - 2022 | Q2 - 2022 | Q1 - 2022 | Q4 - 2021 | Q3 - 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Short-term interest-bearing accounts | $ | 191,463 | 2.51 | % | $ | 553,548 | 0.82 | % | $ | 990,319 | 0.17 | % | $ | 1,145,794 | 0.16 | % | $ | 1,014,120 | 0.16 | % |
| Securities taxable^1^ | 2,491,315 | 1.83 | % | 2,439,960 | 1.74 | % | 2,284,578 | 1.67 | % | 2,081,796 | 1.57 | % | 1,923,700 | 1.63 | % | |||||
| Securities tax-exempt ^1 5^ | 211,306 | 2.47 | % | 256,799 | 1.83 | % | 258,513 | 1.84 | % | 257,320 | 1.85 | % | 246,685 | 1.97 | % | |||||
| FRB and FHLB stock | 25,182 | 3.47 | % | 24,983 | 5.03 | % | 25,026 | 1.98 | % | 25,149 | 2.74 | % | 25,154 | 1.91 | % | |||||
| Loans^1 6^ | 7,808,025 | 4.34 | % | 7,707,730 | 4.09 | % | 7,530,674 | 3.95 | % | 7,507,165 | 4.20 | % | 7,517,839 | 3.84 | % | |||||
| Total interest-earning assets | $ | 10,727,291 | 3.68 | % | $ | 10,983,020 | 3.35 | % | $ | 11,089,110 | 3.09 | % | $ | 11,017,224 | 3.23 | % | $ | 10,727,498 | 3.05 | % |
| 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 | $ | 2,332,341 | 0.15 | % | $ | 2,577,367 | 0.14 | % | $ | 2,720,338 | 0.15 | % | $ | 2,678,477 | 0.16 | % | $ | 2,580,570 | 0.19 | % |
| NOW deposit accounts | 1,548,115 | 0.21 | % | 1,580,132 | 0.07 | % | 1,583,091 | 0.05 | % | 1,551,846 | 0.05 | % | 1,442,678 | 0.05 | % | |||||
| Savings deposits | 1,854,122 | 0.03 | % | 1,845,128 | 0.03 | % | 1,794,549 | 0.03 | % | 1,725,004 | 0.05 | % | 1,691,539 | 0.05 | % | |||||
| Time deposits | 455,168 | 0.35 | % | 478,531 | 0.37 | % | 494,632 | 0.40 | % | 537,875 | 0.46 | % | 565,216 | 0.62 | % | |||||
| Total interest-bearing deposits | $ | 6,189,746 | 0.14 | % | $ | 6,481,158 | 0.11 | % | $ | 6,592,610 | 0.11 | % | $ | 6,493,202 | 0.13 | % | $ | 6,280,003 | 0.16 | % |
| Federal funds purchased | 1,522 | 3.39 | % | - | - | - | - | 65 | - | - | - | |||||||||
| Repurchase agreements | 69,048 | 0.10 | % | 60,061 | 0.09 | % | 72,768 | 0.09 | % | 97,389 | 0.11 | % | 99,703 | 0.11 | % | |||||
| Short-term borrowings | 6,440 | 3.33 | % | - | - | - | - | 1 | - | - | - | |||||||||
| Long-term debt | 3,331 | 2.38 | % | 5,336 | 2.48 | % | 13,979 | 2.52 | % | 14,004 | 2.49 | % | 14,029 | 2.52 | % | |||||
| Subordinated debt, net | 98,748 | 5.46 | % | 98,642 | 5.53 | % | 98,531 | 5.59 | % | 98,422 | 5.48 | % | 98,311 | 5.48 | % | |||||
| Junior subordinated debt | 101,196 | 4.07 | % | 101,196 | 2.92 | % | 101,196 | 2.20 | % | 101,196 | 2.03 | % | 101,196 | 2.03 | % | |||||
| Total interest-bearing liabilities | $ | 6,470,031 | 0.29 | % | $ | 6,746,393 | 0.23 | % | $ | 6,879,084 | 0.23 | % | $ | 6,804,279 | 0.24 | % | $ | 6,593,242 | 0.27 | % |
| 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 | % |
14
| NBT Bancorp Inc. and Subsidiaries<br><br> <br>Average Year-to-Date Balance Sheets | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited, dollars in thousands) | ||||||||||||||
| Average<br><br> <br>Balance | Interest | Yield/<br><br> <br>Rates | Average<br><br> <br>Balance | Interest | Yield/<br><br> <br>Rates | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||
| Assets | ||||||||||||||
| Short-term interest-bearing accounts | $ | 575,517 | $ | 2,742 | 0.64 | % | $ | 860,067 | $ | 763 | 0.12 | % | ||
| Securities taxable^1^ | 2,406,042 | 31,460 | 1.75 | % | 1,852,963 | 23,711 | 1.71 | % | ||||||
| Securities tax-exempt ^1 5^ | 242,033 | 3,664 | 2.02 | % | 208,438 | 3,730 | 2.39 | % | ||||||
| FRB and FHLB stock | 25,064 | 654 | 3.49 | % | 25,290 | 443 | 2.34 | % | ||||||
| Loans^1 6^ | 7,683,159 | 237,290 | 4.13 | % | 7,555,276 | 222,821 | 3.94 | % | ||||||
| Total interest-earning assets | $ | 10,931,815 | $ | 275,810 | 3.37 | % | $ | 10,502,034 | $ | 251,468 | 3.20 | % | ||
| 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 | $ | 2,801 | 0.15 | % | $ | 2,557,172 | $ | 4,022 | 0.21 | % | ||
| NOW deposit accounts | 1,570,318 | 1,260 | 0.11 | % | 1,419,102 | 531 | 0.05 | % | ||||||
| Savings deposits | 1,831,485 | 442 | 0.03 | % | 1,633,941 | 625 | 0.05 | % | ||||||
| Time deposits | 475,966 | 1,328 | 0.37 | % | 590,385 | 3,404 | 0.77 | % | ||||||
| Total interest-bearing deposits | $ | 6,419,696 | $ | 5,831 | 0.12 | % | $ | 6,200,600 | $ | 8,582 | 0.19 | % | ||
| Federal funds purchased | 513 | 13 | 3.39 | % | - | - | - | |||||||
| Repurchase agreements | 67,279 | 46 | 0.09 | % | 101,574 | 104 | 0.14 | % | ||||||
| Short-term borrowings | 2,170 | 54 | 3.33 | % | 1,740 | 26 | 2.00 | % | ||||||
| Long-term debt | 7,509 | 140 | 2.49 | % | 15,976 | 301 | 2.52 | % | ||||||
| Subordinated debt, net | 98,641 | 4,078 | 5.53 | % | 98,204 | 4,077 | 5.55 | % | ||||||
| Junior subordinated debt | 101,196 | 2,325 | 3.07 | % | 101,196 | 1,572 | 2.08 | % | ||||||
| Total interest-bearing liabilities | $ | 6,697,004 | $ | 12,487 | 0.25 | % | $ | 6,519,290 | $ | 14,662 | 0.30 | % | ||
| 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 |
15
| ^1^ | The following tables provide the Non-GAAP | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP measures | |||||||||||||||
| --- | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| Pre-provision net revenue ("PPNR") | 2022 | 2021 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd 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 assets^3^ | 1.33 | % | 1.28 | % | 1.32 | % | 1.23 | % | 1.26 | % | |||||
| PPNR return on average assets^3^ | 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 assets^3^ | 1.31 | % | 1.37 | % | |||||||||||
| PPNR return on average assets^3^ | 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 Q | 2nd Q | 1st Q | 4th Q | 3rd 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%.
16
| ^1^ | The 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 Q | 2nd Q | 1st Q | 4th Q | 3rd 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 Q | 2nd Q | 1st Q | 4th Q | 3rd 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 equity^3^ | 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 equity^3^ | 17.00 | % | 17.35 | % | |||||||||||
| ^2^ | Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | ||||||||||||||
| --- | --- | ||||||||||||||
| ^3^ | Annualized. | ||||||||||||||
| --- | --- | ||||||||||||||
| ^4^ | Total past due loans, defined as loans 30 days or more past due and in an accrual status. | ||||||||||||||
| --- | --- | ||||||||||||||
| ^5^ | Securities are shown at average amortized cost. | ||||||||||||||
| --- | --- | ||||||||||||||
| ^6^ | For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. | ||||||||||||||
| --- | --- |