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): January 23, 2023
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 |
|---|
On January 23, 2023, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended December 31, 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 Tuesday, January 24, 2023, to review the fourth 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. |
| Exhibit No. | Description |
| --- | --- |
| 99.1 | Press release of NBT Bancorp Inc. January 23, 2023 |
| --- | --- |
| 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: January 23, 2023 | By: | /s/ Scott A. Kingsley |
| Scott A. Kingsley | ||
| Executive Vice President | ||
| and Chief Financial Officer |
Exhibit 99.1
1
FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
| 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. ANNOUNCES FULL YEAR NET INCOME OF $152.0 MILLION ($3.52 PER DILUTED COMMON SHARE); APPROVES DIVIDEND
NORWICH, NY (January 23, 2023) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the quarter and year ended December 31, 2022.
Net income for the year ended December 31, 2022 was $152.0 million, or $3.52 per diluted common share, compared to $154.9 million, or $3.54 per diluted share, in the prior year.
| ◾ | Generated positive operating leverage of $21.7 million with total revenues increasing 8.1%, or $38.9 million, while operating expenses were<br> higher by 6.0%, or $17.2 million. |
|---|---|
| ◾ | Net interest income in 2022 improved in comparison to 2021, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate combined with growth<br> in earning assets, strongly overcoming a $17.6 million ($0.31 per diluted share) year-over-year decrease in income from the Paycheck Protection Program (“PPP”). |
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| ◾ | The Company recorded a provision for loan losses of $17.1 million ($0.31 per diluted share) in 2022, compared to a net benefit of $8.3 million ($0.15 per diluted share) in 2021. |
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| ◾ | Card services income was lower than 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act (“Durbin Amendment”)<br> of approximately $8 million ($0.14 per diluted share). |
| --- | --- |
Net income for the three months ended December 31, 2022 was $36.1 million, or $0.84 per diluted common share, compared to $37.3 million, or $0.86 per diluted share, in the fourth quarter of 2021.
| ◾ | Net interest income in the fourth quarter of 2022 improved in comparison to the fourth quarter of 2021 and the linked third quarter of 2022, primarily due to higher yields on earning assets due to<br> increases in the Federal Funds rate, despite a $7.5 million ($0.13 per diluted share) decrease in income from the PPP. |
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| ◾ | The Company recorded a provision for loan losses of $7.7 million ($0.14 per diluted share) in the fourth quarter of 2022, compared to a provision for loan losses of $3.1 million ($0.06 per diluted<br> share) in the fourth quarter of 2021. |
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| ◾ | Card services income was lower than the fourth quarter of 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment of approximately $4<br> million ($0.07 per diluted share). |
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| ◾ | In the fourth quarter of 2022, the Company incurred merger expenses of $1.0 million ($0.02 per diluted share) related to the pending acquisition<br> of Salisbury Bancorp, Inc. |
| --- | --- |
2
CEO Comments
“Our operating results for the fourth quarter and full year of 2022 reflect strong execution by our team, including organic loan growth of over 10% and disciplined cost of funds management,” said NBT President and CEO John H. Watt, Jr. “We recognized the benefits of an asset-sensitive balance sheet in 2022 with increases in the targeted Fed Funds rate, and our credit quality continues to be excellent with low levels of net charge-offs and nonperforming assets.”
“In December, we entered into a definitive agreement to merge with Salisbury Bancorp, Inc. Aligned cultures and complementary markets support the strategic rationale for our partnership with this premier community bank franchise headquartered in Lakeville, CT. We expect the merger to close in the second quarter of 2023, pending required regulatory and shareholder approvals.”
“We were pleased to reach the milestone of 10 consecutive years of annual dividend increases in 2022,” added Watt. “The payment of a meaningful and growing dividend is an important component of our commitment to consistent and favorable long-term returns for our shareholders.”
Fourth Quarter Financial Highlights
| Net Income | ◾ Net income of<br> $36.1 million<br><br> <br>◾ Diluted earnings<br> per share of $0.84<br><br> <br>◾ Excluding merger<br> expenses and securities gains (losses), diluted earnings per share of $0.86 |
|---|---|
| Net Interest Income / NIM | ◾ Net interest<br> income on a fully taxable equivalent (“FTE”) basis was $100.2 million^1^<br><br> <br>◾ Net interest<br> margin (“NIM”) on a FTE basis was 3.68%^1^, up 17 basis points (“bps”) from the prior quarter,<br><br> <br>due primarily to a 34 bp increase in the<br> yields on earning assets<br><br> <br>◾ Total cost of<br> deposits of 0.17%, up 8 bps from the prior quarter<br><br> <br>◾ Total cost of<br> funds of 0.37%, up 19 bps from the prior quarter |
| Noninterest Income | ◾ Noninterest<br> income was $34.3 million, excluding securities gains (losses) and was 25.6% of total revenue |
| Pre-Provision Net Revenue (“PPNR”) | ◾ PPNR^1^<br> was $55.8 million, consistent with the third quarter of 2022 and was 8.3% higher than the fourth<br><br> <br>quarter of 2021 |
| Loans and Credit Quality | ◾ Period end total<br> loans of $8.15 billion at December 31, 2022, up 10.2% from December 31, 2021, excluding<br><br> <br>impact of PPP loans<br><br> <br>◾ Period end loans<br> increased $752.0 million from December 31, 2021, excluding $0.9 million and $101.2<br><br> <br>million of PPP loans at December 31, 2022 and December 31, 2021, respectively<br><br> <br>◾ Net charge-offs<br> to average loans was 0.18%, annualized<br><br> <br>◾ Nonperforming<br> loans to total loans was 0.26%, down from 0.28% in the prior quarter<br><br> <br>◾ Allowance for<br> loan losses to total loans of 1.24% |
| Capital | ◾ Announced a<br> $0.30 per share dividend for the first quarter of 2023, which was a $0.02 per share, or 7.1%,<br><br> <br>increase from the first quarter of 2022<br><br> <br>◾ Stockholders’<br> equity was $1.17 billion as of December 31, 2022<br><br> <br>◾ Tangible book<br> value per share^2^ was $20.65 at December 31, 2022, modestly lower than the fourth quarter of<br><br> <br>2021 and higher than the third quarter of 2022, due primarily to the impact of the<br> changes in accumulated<br><br> <br>other comprehensive income (“AOCI”)<br><br> <br>◾ Tangible equity<br> to assets of 7.73%^1^<br><br> <br>◾ CET1 ratio of<br> 12.12%; Leverage ratio of 10.32% |
3
Loans
| ◾ | Period end total loans were $8.15 billion at December 31, 2022 and $7.50 billion at December 31, 2021. |
|---|---|
| ◾ | Excluding PPP loans, period end loans increased $752.0 million from December 31, 2021. Commercial and industrial loans increased $109.8 million to $1.27 billion; commercial real estate loans<br> increased $152.6 million to $2.81 billion; and total consumer loans increased $489.5 million to $4.08 billion. |
| --- | --- |
| ◾ | Total PPP loans as of December 31, 2022 were $0.9 million (net of unamortized fees) with over 99% of the original $836 million forgiven or extinguished through the fourth quarter of 2022. The<br> following PPP loan activity occurred during the fourth quarter of 2022: |
| --- | --- |
| o | $2.2 million of loans forgiven. |
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| o | $0.1 million of interest and fees recognized into interest income, compared to $0.3 million for the third quarter of 2022 and $7.5 million for the fourth quarter of 2021. |
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| ◾ | Commercial line of credit utilization rate was 21% at December 31, 2022, compared to 23% at September 30, 2022 and 21% at December 31, 2021. |
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Deposits
| ◾ | Total deposits at December 31, 2022 were $9.50 billion, compared to $10.23 billion at December 31, 2021. The decrease in deposits was primarily concentrated in certain larger more rate-sensitive<br> accounts. The effects of tighter monetary policy, inflation and higher rate alternatives continued to weigh on balances. Even though deposit balances declined from 2021, year-end 2022 deposit balances are still 25.1% higher than the end of<br> 2019. |
|---|---|
| ◾ | Loan to deposit ratio was 85.8% at December 31, 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 fourth quarter of 2022 was $99.8 million, which was up $5.3 million, or 5.6%, from the third quarter of 2022 and up $14.6 million, or 17.1%, from the fourth quarter of<br> 2021 primarily due to higher yields on earning assets. PPP income for the fourth quarter of 2022 was $0.1 million, which was $0.2 million lower compared to the prior quarter and down $7.5 million compared to the fourth quarter of 2021. |
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| ◾ | The NIM on a FTE basis for the fourth quarter of 2022 was 3.68%, up 17 bps from the third quarter of 2022 and up 60 bps from the fourth quarter of 2021 due to higher earning asset yields partly<br> offset by higher cost of interest-bearing liabilities. |
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| ◾ | Earning asset yields for the three months ended December 31, 2022 were up 34 bps from the prior quarter and up 79 bps from the same quarter in the prior year. Earning assets grew $73.8 million, or 0.7%, from the prior quarter and declined $216.1 million, or 2.0% compared to<br><br><br><br><br><br><br><br><br><br><br> the same quarter in the prior year. The following are highlights comparing the fourth quarter of 2022 to the prior quarter: |
| --- | --- |
| o | Loan yields increased 38 bps to 4.72% for the quarter. |
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| o | During the fourth quarter, the Company shifted from an excess liquidity position to an overnight borrowing position. The Company had net average short-term interest-earning assets of $185.0 million<br> in the third quarter compared to net average short-term borrowings of $138.0 million in the fourth quarter. The impact of the change net liquidity position was approximately a $3.2 million decrease in net interest income. |
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| ◾ | Total cost of deposits was 0.17% for the fourth quarter of 2022, up 8 bps from the prior quarter and up 9 bps from the same period in the prior year. |
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| ◾ | The cost of total interest-bearing liabilities for the three months ended December 31, 2022 was 0.57%, up 28 bps from the prior quarter and up 33 bps from the fourth quarter of 2021. |
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4
Credit Quality and Allowance for Credit Losses
| ◾ | Net charge-offs to total average loans was 18 bps compared to 7 bps in the prior quarter and 22 bps in the fourth quarter of 2021. Recoveries in the fourth quarter of 2022 were $1.7 million compared<br> to $3.4 million in the prior quarter and $2.5 million in the fourth quarter of 2021. The increase in net charge-offs from the prior quarter was driven by higher charge-offs in the other consumer portfolio and lower recoveries in the<br> commercial and industrial portfolio. |
|---|---|
| ◾ | Nonperforming assets to total assets was 0.18% at December 31, 2022, compared to 0.19% at September 30, 2022 and 0.27% (0.28% excluding PPP loans) at December 31, 2021. |
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| ◾ | Provision expense for the three months ended December 31, 2022 was $7.7 million with net charge-offs of $3.7 million. Provision expense was $3.2 million higher than the third quarter of 2022 and $4.6<br> million higher than the fourth quarter of 2021. The increase in provision expense from the fourth quarter of 2021 was driven by loan growth and less favorable economic forecasts in 2022 versus an improving economic forecast in the prior year. |
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| ◾ | The allowance for loan losses was $100.8 million, or 1.24% of total loans, at December 31, 2022, compared to 1.22% (1.23% excluding PPP loans and related allowance) of total loans at September 30,<br> 2022 and 1.23% (1.24% excluding PPP loans and related allowance) of total loans at December 31, 2021. The reserve for unfunded loan commitments decreased to $5.1 million at December 31, 2022 compared to the prior quarter at $5.3 million and<br> compared to the fourth quarter of 2021 at $5.1 million. |
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Noninterest Income
| ◾ | Total noninterest income, excluding securities gains (losses), was $34.3 million for the three months ended December 31, 2022, down $3.0 million from the third quarter and down $6.8 million from the<br> prior year’s fourth quarter. |
|---|---|
| ◾ | Card services income was lower than the fourth quarter of 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment. Card services income<br> was lower than the prior quarter driven primarily by lower levels of card utilization. |
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| ◾ | Retirement plan administration fees were lower than the prior quarter driven by market decline, seasonal revenues recognized in the third quarter and lower activity-based fees. Retirement plan<br> administration fees were lower than the fourth quarter of 2021 driven by lower activity-based fees and market performance. In 2022, the Company recognized approximately $2.5 million of fees related to statutory plan document restatement<br> requirements that generally recur on a six-year cycle. |
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| ◾ | Wealth management fees were lower than the prior quarter due to seasonal tax preparation services in the third quarter and lower than the fourth quarter of 2021 driven primarily by market<br> performance. |
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| ◾ | Other income decreased from the prior quarter and the fourth quarter of 2021 driven by lower commercial loan swap fees. |
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Noninterest Expense
| ◾ | Total noninterest expense, excluding $1.0 million of merger expense in the fourth quarter of 2022 was up 2.4% from the previous quarter and up 4.6% from the fourth quarter of 2021. |
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| ◾ | Salaries and benefits decreased 2.3% from the prior quarter driven by lower benefit plan costs. The increase from the fourth quarter of 2021 was driven by increased salaries and wages, including<br> merit pay increases and higher levels of incentive compensation accruals. |
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| ◾ | Technology and data services expenses were consistent with the prior quarter and increased from the fourth quarter of 2021 due to continued investment in digital platform solutions. |
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| ◾ | Professional fees and outside services expense were higher than the prior quarter due to seasonal expenses and timing of external services for several tactical and strategic initiatives. |
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5
Income Taxes
| ◾ | The effective tax rate was 22.6% for the fourth quarter of 2022, compared to 22.8% for the third quarter of 2022 and 22.4% for the fourth quarter of 2021. |
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Capital
| ◾ | Capital ratios remain strong with tangible common equity to tangible assets^1^ at 7.73%. Tangible book value per share^2^ was $20.65 at December 31, 2022, $20.25 at September 30,<br> 2022 and $22.26 at December 31, 2021. |
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| ◾ | Stockholders’ equity decreased $76.9 million from December 31, 2021 driven by the $166.7 million decrease in AOCI due primarily to the change in the market value of securities available for sale,<br> dividends declared of $49.8 million and the repurchase of common stock of $14.7 million, partly offset by net income generation of $152.0 million. |
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| ◾ | December 31, 2022, CET1 capital ratio of 12.12%, leverage ratio of 10.32 % and total risk-based capital ratio of 15.38%. |
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| ◾ | The Company purchased 400,000 shares of its common stock in the first half of 2022 at an average price of $36.78 per share under its previously announced share repurchase program. There were<br> 1,600,000 shares available for repurchase under this plan which is set to expire on December 31, 2023. |
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Dividend
| ◾ | The Board of Directors approved a first-quarter cash dividend of $0.30 per share at a meeting held today, an increase of $0.02, or 7.1%, from the amount paid in the first quarter of 2022. 2022 was<br> the tenth consecutive year of annual dividend increases by the Company. The dividend will be paid on March 15, 2023 to stockholders of record as of March 1, 2023. |
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Salisbury Bancorp, Inc. Merger
| ◾ | On December 5, 2022, NBT announced that it had entered into an agreement to acquire Salisbury Bancorp, Inc., a 14 branch community bank franchise headquartered in Lakeville, CT, in an all stock<br> transaction. Salisbury Bancorp, Inc. had assets of $1.51 billion, deposits of $1.33 billion, and net loans of $1.18 billion as of September 30, 2022. The merger is expected to close in the second quarter of 2023 subject to customary closing<br> conditions, including approval by the shareholders of Salisbury Bancorp, Inc. and required regulatory approvals. |
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Conference Call and Webcast
The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, January 24, 2023, to review fourth 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 $11.74 billion at December 31, 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.
6
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.
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.
7
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 | ||||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Profitability: | |||||||||||||||
| Diluted earnings per share | $ | 0.84 | $ | 0.90 | $ | 0.88 | $ | 0.90 | $ | 0.86 | |||||
| Weighted average diluted common shares outstanding | 43,144,666 | 43,110,932 | 43,092,851 | 43,385,451 | 43,574,539 | ||||||||||
| Return on average assets^3^ | 1.23 | % | 1.33 | % | 1.28 | % | 1.32 | % | 1.23 | % | |||||
| Return on average equity^3^ | 12.30 | % | 12.87 | % | 12.73 | % | 12.78 | % | 11.89 | % | |||||
| Return on average tangible common equity^1 3^ | 16.54 | % | 17.12 | % | 17.00 | % | 16.87 | % | 15.70 | % | |||||
| Net interest margin^1 3^ | 3.68 | % | 3.51 | % | 3.21 | % | 2.95 | % | 3.08 | % | |||||
| 12 Months<br> Ended December 31, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Profitability: | |||||||||||||||
| Diluted earnings per share | $ | 3.52 | $ | 3.54 | |||||||||||
| Weighted average diluted common shares outstanding | 43,181,312 | 43,718,804 | |||||||||||||
| Return on average assets | 1.29 | % | 1.33 | % | |||||||||||
| Return on average equity | 12.67 | % | 12.71 | % | |||||||||||
| Return on average tangible common equity^1^ | 16.89 | % | 16.92 | % | |||||||||||
| Net interest margin^1^ | 3.34 | % | 3.03 | % | |||||||||||
| 2022 | 2021 | ||||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Balance sheet data: | |||||||||||||||
| Short-term interest-bearing accounts | $ | 30,862 | $ | 97,303 | $ | 328,593 | $ | 913,315 | $ | 1,111,296 | |||||
| Securities available for sale | 1,527,225 | 1,556,501 | 1,619,356 | 1,662,697 | 1,687,361 | ||||||||||
| Securities held to maturity | 919,517 | 929,541 | 936,512 | 895,005 | 733,210 | ||||||||||
| Net loans | 8,049,347 | 7,807,984 | 7,684,081 | 7,559,826 | 7,406,459 | ||||||||||
| Total assets | 11,739,296 | 11,640,742 | 11,720,459 | 12,147,833 | 12,012,111 | ||||||||||
| Total deposits | 9,495,933 | 9,918,751 | 10,028,708 | 10,461,623 | 10,234,469 | ||||||||||
| Total borrowings | 787,950 | 277,889 | 265,796 | 278,788 | 311,476 | ||||||||||
| Total liabilities | 10,565,742 | 10,484,196 | 10,531,903 | 10,945,583 | 10,761,658 | ||||||||||
| Stockholders' equity | 1,173,554 | 1,156,546 | 1,188,556 | 1,202,250 | 1,250,453 | ||||||||||
| Capital: | |||||||||||||||
| Equity to assets | 10.00 | % | 9.94 | % | 10.14 | % | 9.90 | % | 10.41 | % | |||||
| Tangible equity ratio^1^ | 7.73 | % | 7.64 | % | 7.87 | % | 7.70 | % | 8.20 | % | |||||
| Book value per share | $ | 27.38 | $ | 27.00 | $ | 27.75 | $ | 27.96 | $ | 28.97 | |||||
| Tangible book value per share^2^ | $ | 20.65 | $ | 20.25 | $ | 20.99 | $ | 21.25 | $ | 22.26 | |||||
| Leverage ratio | 10.32 | % | 10.21 | % | 9.77 | % | 9.52 | % | 9.41 | % | |||||
| Common equity tier 1 capital ratio | 12.12 | % | 12.17 | % | 12.14 | % | 12.23 | % | 12.25 | % | |||||
| Tier 1 capital ratio | 13.19 | % | 13.27 | % | 13.27 | % | 13.39 | % | 13.43 | % | |||||
| Total risk-based capital ratio | 15.38 | % | 15.50 | % | 15.50 | % | 15.64 | % | 15.73 | % | |||||
| Common stock price (end of period) | $ | 43.42 | $ | 37.95 | $ | 37.59 | $ | 36.13 | $ | 38.52 |
9
| NBT Bancorp Inc. and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Quality and Consolidated Loan Balances | |||||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Asset quality: | |||||||||||||||
| Nonaccrual loans | $ | 17,233 | $ | 19,098 | $ | 23,673 | $ | 25,812 | $ | 30,285 | |||||
| 90 days past due and still accruing | 3,823 | 2,732 | 2,096 | 1,944 | 2,458 | ||||||||||
| Total nonperforming loans | 21,056 | 21,830 | 25,769 | 27,756 | 32,743 | ||||||||||
| Other real estate owned | 105 | - | - | - | 167 | ||||||||||
| Total nonperforming assets | 21,161 | 21,830 | 25,769 | 27,756 | 32,910 | ||||||||||
| Allowance for loan losses | 100,800 | 96,800 | 93,600 | 90,000 | 92,000 | ||||||||||
| Asset quality ratios (total): | |||||||||||||||
| Allowance for loan losses to total loans | 1.24 | % | 1.22 | % | 1.20 | % | 1.18 | % | 1.23 | % | |||||
| Total nonperforming loans to total loans | 0.26 | % | 0.28 | % | 0.33 | % | 0.36 | % | 0.44 | % | |||||
| Total nonperforming assets to total assets | 0.18 | % | 0.19 | % | 0.22 | % | 0.23 | % | 0.27 | % | |||||
| Allowance for loan losses to total nonperforming loans | 478.72 | % | 443.43 | % | 363.23 | % | 324.25 | % | 280.98 | % | |||||
| Past due loans to total loans^4^ | 0.33 | % | 0.30 | % | 0.40 | % | 0.24 | % | 0.29 | % | |||||
| Net charge-offs to average loans^3^ | 0.18 | % | 0.07 | % | 0.04 | % | 0.14 | % | 0.22 | % | |||||
| Asset quality ratios (excluding paycheck protection program): | |||||||||||||||
| Allowance for loan losses to total loans | 1.24 | % | 1.23 | % | 1.21 | % | 1.18 | % | 1.24 | % | |||||
| Total nonperforming loans to total loans | 0.26 | % | 0.28 | % | 0.33 | % | 0.37 | % | 0.44 | % | |||||
| Total nonperforming assets to total assets | 0.18 | % | 0.19 | % | 0.22 | % | 0.23 | % | 0.28 | % | |||||
| Allowance for loan losses to total nonperforming loans | 478.72 | % | 443.43 | % | 363.27 | % | 324.24 | % | 280.96 | % | |||||
| Past due loans to total loans^4^ | 0.33 | % | 0.29 | % | 0.40 | % | 0.25 | % | 0.29 | % | |||||
| Net charge-offs to average loans^3^ | 0.18 | % | 0.07 | % | 0.04 | % | 0.14 | % | 0.22 | % | |||||
| 2022 | 2021 | ||||||||||||||
| Net charge-offs by line of business: | 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | ||||||||||
| Commercial & industrial | $ | (45 | ) | $ | (1,045 | ) | $ | (298 | ) | $ | 139 | $ | 1,929 | ||
| Commercial real estate | 8 | 324 | (246 | ) | 346 | 372 | |||||||||
| Residential real estate and home equity | (79 | ) | (56 | ) | (210 | ) | 163 | 51 | |||||||
| Indirect auto | 445 | 222 | 163 | 135 | (58 | ) | |||||||||
| Residential solar | 596 | 43 | 153 | 132 | 170 | ||||||||||
| Other consumer | 2,752 | 1,796 | 1,228 | 1,681 | 1,633 | ||||||||||
| Total net charge-offs | $ | 3,677 | $ | 1,284 | $ | 790 | $ | 2,596 | $ | 4,097 | |||||
| 2022 | 2021 | ||||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Allowance for loan losses as a percentage of loans by segment: | |||||||||||||||
| Commercial & industrial | 0.82 | % | 0.80 | % | 0.75 | % | 0.66 | % | 0.78 | % | |||||
| Commercial real estate | 0.91 | % | 0.88 | % | 0.89 | % | 0.79 | % | 0.78 | % | |||||
| Paycheck protection program | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||
| Residential real estate | 0.72 | % | 0.74 | % | 0.79 | % | 0.88 | % | 0.92 | % | |||||
| Auto | 0.81 | % | 0.78 | % | 0.79 | % | 0.76 | % | 0.79 | % | |||||
| Residential solar | 3.21 | % | 3.08 | % | 3.00 | % | 2.97 | % | 3.04 | % | |||||
| Other consumer | 6.27 | % | 6.67 | % | 6.19 | % | 6.24 | % | 6.66 | % | |||||
| Total | 1.24 | % | 1.22 | % | 1.20 | % | 1.18 | % | 1.23 | % | |||||
| Total excluding PPP loans | 1.24 | % | 1.23 | % | 1.21 | % | 1.18 | % | 1.24 | % | |||||
| 2022 | 2021 | ||||||||||||||
| Loans by line of business: | 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | ||||||||||
| Commercial & industrial | $ | 1,265,082 | $ | 1,258,871 | $ | 1,298,072 | $ | 1,214,834 | $ | 1,155,240 | |||||
| Commercial real estate | 2,807,941 | 2,724,728 | 2,670,633 | 2,709,611 | 2,655,367 | ||||||||||
| Paycheck protection program | 949 | 3,328 | 17,286 | 50,977 | 101,222 | ||||||||||
| Residential real estate | 1,649,870 | 1,626,528 | 1,606,188 | 1,584,551 | 1,571,232 | ||||||||||
| Indirect auto | 989,587 | 952,757 | 936,516 | 890,643 | 859,454 | ||||||||||
| Residential solar | 856,798 | 728,898 | 599,565 | 514,526 | 440,016 | ||||||||||
| Home equity | 314,124 | 313,557 | 313,395 | 319,180 | 330,357 | ||||||||||
| Other consumer | 265,796 | 296,117 | 336,026 | 365,504 | 385,571 | ||||||||||
| Total loans | $ | 8,150,147 | $ | 7,904,784 | $ | 7,777,681 | $ | 7,649,826 | $ | 7,498,459 | |||||
| PPP income recognized | $ | 71 | $ | 320 | $ | 1,301 | $ | 1,976 | $ | 7,545 | |||||
| PPP unamortized fees | $ | 45 | $ | 108 | $ | 414 | $ | 1,629 | $ | 3,420 |
10
| NBT Bancorp Inc. and Subsidiaries | |||
|---|---|---|---|
| Consolidated Balance Sheets | |||
| (unaudited, dollars in thousands) | |||
| December 31, | |||
| Assets | 2021 | ||
| Cash and due from banks | 166,488 | $ | 157,775 |
| Short-term interest-bearing accounts | 30,862 | 1,111,296 | |
| Equity securities, at fair value | 30,784 | 33,550 | |
| Securities available for sale, at fair value | 1,527,225 | 1,687,361 | |
| Securities held to maturity (fair value 812,647 and 735,260, respectively) | 919,517 | 733,210 | |
| Federal Reserve and Federal Home Loan Bank stock | 44,713 | 25,098 | |
| Loans held for sale | 562 | 830 | |
| Loans | 8,150,147 | 7,498,459 | |
| Less allowance for loan losses | 100,800 | 92,000 | |
| Net loans | 8,049,347 | $ | 7,406,459 |
| Premises and equipment, net | 69,047 | 72,093 | |
| Goodwill | 281,204 | 280,541 | |
| Intangible assets, net | 7,341 | 8,927 | |
| Bank owned life insurance | 232,409 | 228,238 | |
| Other assets | 379,797 | 266,733 | |
| Total assets | 11,739,296 | $ | 12,012,111 |
| Liabilities and stockholders' equity | |||
| Demand (noninterest bearing) | 3,617,324 | $ | 3,689,556 |
| Savings, NOW and money market | 5,444,837 | 6,043,441 | |
| Time | 433,772 | 501,472 | |
| Total deposits | 9,495,933 | $ | 10,234,469 |
| Short-term borrowings | 585,012 | 97,795 | |
| Long-term debt | 4,815 | 13,995 | |
| Subordinated debt, net | 96,927 | 98,490 | |
| Junior subordinated debt | 101,196 | 101,196 | |
| Other liabilities | 281,859 | 215,713 | |
| Total liabilities | 10,565,742 | $ | 10,761,658 |
| Total stockholders' equity | 1,173,554 | $ | 1,250,453 |
| Total liabilities and stockholders' equity | 11,739,296 | $ | 12,012,111 |
All values are in US Dollars.
11
| NBT Bancorp Inc. and Subsidiaries | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | |||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| Interest, fee and dividend income | |||||||||||
| Interest and fees on loans | $ | 95,620 | $ | 79,470 | $ | 332,768 | $ | 302,175 | |||
| Securities available for sale | 7,831 | 6,101 | 29,653 | 23,305 | |||||||
| Securities held to maturity | 5,050 | 3,097 | 17,582 | 12,551 | |||||||
| Other | 671 | 639 | 4,067 | 1,845 | |||||||
| Total interest, fee and dividend income | $ | 109,172 | $ | 89,307 | $ | 384,070 | $ | 339,876 | |||
| Interest expense | |||||||||||
| Deposits | $ | 4,092 | $ | 2,132 | $ | 9,923 | $ | 10,714 | |||
| Short-term borrowings | 2,510 | 28 | 2,623 | 158 | |||||||
| Long-term debt | 21 | 88 | 161 | 389 | |||||||
| Subordinated debt | 1,346 | 1,360 | 5,424 | 5,437 | |||||||
| Junior subordinated debt | 1,424 | 518 | 3,749 | 2,090 | |||||||
| Total interest expense | $ | 9,393 | $ | 4,126 | $ | 21,880 | $ | 18,788 | |||
| Net interest income | $ | 99,779 | $ | 85,181 | $ | 362,190 | $ | 321,088 | |||
| Provision for loan losses | 7,677 | 3,097 | 17,147 | (8,257) | |||||||
| Net interest income after provision for loan losses | $ | 92,102 | $ | 82,084 | $ | 345,043 | $ | 329,345 | |||
| Noninterest income | |||||||||||
| Service charges on deposit accounts | $ | 3,598 | $ | 3,804 | $ | 14,630 | $ | 13,348 | |||
| Card services income | 4,958 | 8,847 | 29,058 | 34,682 | |||||||
| Retirement plan administration fees | 10,661 | 11,816 | 48,112 | 42,188 | |||||||
| Wealth management | 8,017 | 8,619 | 33,311 | 33,718 | |||||||
| Insurance services | 3,438 | 3,394 | 14,696 | 14,083 | |||||||
| Bank owned life insurance income | 1,419 | 1,629 | 6,044 | 6,217 | |||||||
| Net securities (losses) gains | (217 | ) | (2 | ) | (1,131 | ) | 566 | ||||
| Other | 2,217 | 3,004 | 10,858 | 12,992 | |||||||
| Total noninterest income | $ | 34,091 | $ | 41,111 | $ | 155,578 | $ | 157,794 | |||
| Noninterest expense | |||||||||||
| Salaries and employee benefits | $ | 47,235 | $ | 44,118 | $ | 187,830 | $ | 172,580 | |||
| Technology and data services | 9,124 | 8,563 | 35,712 | 34,717 | |||||||
| Occupancy | 6,521 | 6,635 | 26,282 | 26,048 | |||||||
| Professional fees and outside services | 4,811 | 4,903 | 16,810 | 16,306 | |||||||
| Office supplies and postage | 1,699 | 1,528 | 6,140 | 6,006 | |||||||
| FDIC expense | 798 | 798 | 3,197 | 3,041 | |||||||
| Advertising | 879 | 1,019 | 2,822 | 2,521 | |||||||
| Amortization of intangible assets | 539 | 651 | 2,264 | 2,808 | |||||||
| Loan collection and other real estate owned, net | 957 | 956 | 2,647 | 2,915 | |||||||
| Merger expenses | 967 | - | 967 | - | |||||||
| Other | 5,979 | 5,934 | 19,794 | 20,339 | |||||||
| Total noninterest expense | $ | 79,509 | $ | 75,105 | $ | 304,465 | $ | 287,281 | |||
| Income before income tax expense | $ | 46,684 | $ | 48,090 | $ | 196,156 | $ | 199,858 | |||
| Income tax expense | 10,563 | 10,780 | 44,161 | 44,973 | |||||||
| Net income | $ | 36,121 | $ | 37,310 | $ | 151,995 | $ | 154,885 | |||
| Earnings Per Share | |||||||||||
| Basic | $ | 0.84 | $ | 0.86 | $ | 3.54 | $ | 3.57 | |||
| Diluted | $ | 0.84 | $ | 0.86 | $ | 3.52 | $ | 3.54 |
12
| NBT Bancorp Inc. and Subsidiaries | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarterly Consolidated Statements of Income | ||||||||||||||
| (unaudited, dollars in thousands except per share data) | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | ||||||||||
| Interest, fee and dividend income | ||||||||||||||
| Interest and fees on loans | $ | 95,620 | $ | 85,266 | $ | 78,539 | $ | 73,343 | $ | 79,470 | ||||
| Securities available for sale | 7,831 | 7,665 | 7,317 | 6,840 | 6,101 | |||||||||
| Securities held to maturity | 5,050 | 4,854 | 4,185 | 3,493 | 3,097 | |||||||||
| Other | 671 | 1,429 | 1,442 | 525 | 639 | |||||||||
| Total interest, fee and dividend income | $ | 109,172 | $ | 99,214 | $ | 91,483 | $ | 84,201 | $ | 89,307 | ||||
| Interest expense | ||||||||||||||
| Deposits | $ | 4,092 | $ | 2,233 | $ | 1,756 | $ | 1,842 | $ | 2,132 | ||||
| Short-term borrowings | 2,510 | 84 | 13 | 16 | 28 | |||||||||
| Long-term debt | 21 | 20 | 33 | 87 | 88 | |||||||||
| Subordinated debt | 1,346 | 1,360 | 1,359 | 1,359 | 1,360 | |||||||||
| Junior subordinated debt | 1,424 | 1,039 | 737 | 549 | 518 | |||||||||
| Total interest expense | $ | 9,393 | $ | 4,736 | $ | 3,898 | $ | 3,853 | $ | 4,126 | ||||
| Net interest income | $ | 99,779 | $ | 94,478 | $ | 87,585 | $ | 80,348 | $ | 85,181 | ||||
| Provision for loan losses | 7,677 | 4,484 | 4,390 | 596 | 3,097 | |||||||||
| Net interest income after provision for loan losses | $ | 92,102 | $ | 89,994 | $ | 83,195 | $ | 79,752 | $ | 82,084 | ||||
| Noninterest income | ||||||||||||||
| Service charges on deposit accounts | $ | 3,598 | $ | 3,581 | $ | 3,763 | $ | 3,688 | $ | 3,804 | ||||
| Card services income | 4,958 | 5,654 | 9,751 | 8,695 | 8,847 | |||||||||
| Retirement plan administration fees | 10,661 | 11,496 | 12,676 | 13,279 | 11,816 | |||||||||
| Wealth management | 8,017 | 8,402 | 8,252 | 8,640 | 8,619 | |||||||||
| Insurance services | 3,438 | 3,892 | 3,578 | 3,788 | 3,394 | |||||||||
| Bank owned life insurance income | 1,419 | 1,560 | 1,411 | 1,654 | 1,629 | |||||||||
| Net securities (losses) | (217 | ) | (148 | ) | (587 | ) | (179 | ) | (2) | |||||
| Other | 2,217 | 2,735 | 2,812 | 3,094 | 3,004 | |||||||||
| Total noninterest income | $ | 34,091 | $ | 37,172 | $ | 41,656 | $ | 42,659 | $ | 41,111 | ||||
| Noninterest expense | ||||||||||||||
| Salaries and employee benefits | $ | 47,235 | $ | 48,371 | $ | 46,716 | $ | 45,508 | $ | 44,118 | ||||
| Technology and data services | 9,124 | 9,096 | 8,945 | 8,547 | 8,563 | |||||||||
| Occupancy | 6,521 | 6,481 | 6,487 | 6,793 | 6,635 | |||||||||
| Professional fees and outside services | 4,811 | 3,817 | 3,906 | 4,276 | 4,903 | |||||||||
| Office supplies and postage | 1,699 | 1,469 | 1,548 | 1,424 | 1,528 | |||||||||
| FDIC expense | 798 | 787 | 810 | 802 | 798 | |||||||||
| Advertising | 879 | 559 | 730 | 654 | 1,019 | |||||||||
| Amortization of intangible assets | 539 | 544 | 545 | 636 | 651 | |||||||||
| Loan collection and other real estate owned, net | 957 | 549 | 757 | 384 | 956 | |||||||||
| Merger expenses | 967 | - | - | - | - | |||||||||
| Other | 5,979 | 5,021 | 5,675 | 3,119 | 5,934 | |||||||||
| Total noninterest expense | $ | 79,509 | $ | 76,694 | $ | 76,119 | $ | 72,143 | $ | 75,105 | ||||
| Income before income tax expense | $ | 46,684 | $ | 50,472 | $ | 48,732 | $ | 50,268 | $ | 48,090 | ||||
| Income tax expense | 10,563 | 11,499 | 10,957 | 11,142 | 10,780 | |||||||||
| Net income | $ | 36,121 | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | ||||
| Earnings Per Share | ||||||||||||||
| Basic | $ | 0.84 | $ | 0.91 | $ | 0.88 | $ | 0.91 | $ | 0.86 | ||||
| Diluted | $ | 0.84 | $ | 0.90 | $ | 0.88 | $ | 0.90 | $ | 0.86 |
13
| NBT Bancorp Inc. and Subsidiaries | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||
| Q4 - 2022 | Q3 - 2022 | Q2 - 2022 | Q1 - 2022 | Q4 - 2021 | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Short-term interest-bearing accounts | $ | 39,573 | 3.31 | % | $ | 191,463 | 2.51 | % | $ | 553,548 | 0.82 | % | $ | 990,319 | 0.17 | % | $ | 1,145,794 | 0.16 | % | ||||||||
| Securities taxable^1^ | 2,480,959 | 1.88 | % | 2,491,315 | 1.83 | % | 2,439,960 | 1.74 | % | 2,284,578 | 1.67 | % | 2,081,796 | 1.57 | % | |||||||||||||
| Securities tax-exempt ^1 5^ | 208,238 | 2.68 | % | 211,306 | 2.47 | % | 256,799 | 1.83 | % | 258,513 | 1.84 | % | 257,320 | 1.85 | % | |||||||||||||
| FRB and FHLB stock | 32,903 | 4.11 | % | 25,182 | 3.47 | % | 24,983 | 5.03 | % | 25,026 | 1.98 | % | 25,149 | 2.74 | % | |||||||||||||
| Loans^1 6^ | 8,039,442 | 4.72 | % | 7,808,025 | 4.34 | % | 7,707,730 | 4.09 | % | 7,530,674 | 3.95 | % | 7,507,165 | 4.20 | % | |||||||||||||
| Total interest-earning assets | $ | 10,801,115 | 4.02 | % | $ | 10,727,291 | 3.68 | % | $ | 10,983,020 | 3.35 | % | $ | 11,089,110 | 3.09 | % | $ | 11,017,224 | 3.23 | % | ||||||||
| Other assets | 855,410 | 887,378 | 883,498 | 947,578 | 982,136 | |||||||||||||||||||||||
| Total assets | $ | 11,656,525 | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | ||||||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||||||||||
| Money market deposit accounts | $ | 2,169,192 | 0.39 | % | $ | 2,332,341 | 0.15 | % | $ | 2,577,367 | 0.14 | % | $ | 2,720,338 | 0.15 | % | $ | 2,678,477 | 0.16 | % | ||||||||
| NOW deposit accounts | 1,604,096 | 0.33 | % | 1,548,115 | 0.21 | % | 1,580,132 | 0.07 | % | 1,583,091 | 0.05 | % | 1,551,846 | 0.05 | % | |||||||||||||
| Savings deposits | 1,823,056 | 0.03 | % | 1,854,122 | 0.03 | % | 1,845,128 | 0.03 | % | 1,794,549 | 0.03 | % | 1,725,004 | 0.05 | % | |||||||||||||
| Time deposits | 432,110 | 0.41 | % | 455,168 | 0.35 | % | 478,531 | 0.37 | % | 494,632 | 0.40 | % | 537,875 | 0.46 | % | |||||||||||||
| Total interest-bearing deposits | $ | 6,028,454 | 0.27 | % | $ | 6,189,746 | 0.14 | % | $ | 6,481,158 | 0.11 | % | $ | 6,592,610 | 0.11 | % | $ | 6,493,202 | 0.13 | % | ||||||||
| Federal funds purchased | 56,576 | 4.03 | % | 1,522 | 3.39 | % | - | - | - | - | 65 | - | ||||||||||||||||
| Repurchase agreements | 76,334 | 0.11 | % | 69,048 | 0.10 | % | 60,061 | 0.09 | % | 72,768 | 0.09 | % | 97,389 | 0.11 | % | |||||||||||||
| Short-term borrowings | 177,533 | 4.28 | % | 6,440 | 3.33 | % | - | - | - | - | 1 | - | ||||||||||||||||
| Long-term debt | 3,817 | 2.18 | % | 3,331 | 2.38 | % | 5,336 | 2.48 | % | 13,979 | 2.52 | % | 14,004 | 2.49 | % | |||||||||||||
| Subordinated debt, net | 97,839 | 5.46 | % | 98,748 | 5.46 | % | 98,642 | 5.53 | % | 98,531 | 5.59 | % | 98,422 | 5.48 | % | |||||||||||||
| Junior subordinated debt | 101,196 | 5.58 | % | 101,196 | 4.07 | % | 101,196 | 2.92 | % | 101,196 | 2.20 | % | 101,196 | 2.03 | % | |||||||||||||
| Total interest-bearing liabilities | $ | 6,541,749 | 0.57 | % | $ | 6,470,031 | 0.29 | % | $ | 6,746,393 | 0.23 | % | $ | 6,879,084 | 0.23 | % | $ | 6,804,279 | 0.24 | % | ||||||||
| Demand deposits | 3,658,965 | 3,708,131 | 3,711,049 | 3,710,124 | 3,719,070 | |||||||||||||||||||||||
| Other liabilities | 290,895 | 234,851 | 218,491 | 206,292 | 231,260 | |||||||||||||||||||||||
| Stockholders' equity | 1,164,916 | 1,201,656 | 1,190,585 | 1,241,188 | 1,244,751 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 11,656,525 | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | ||||||||||||||||||
| Interest rate spread | 3.45 | % | 3.39 | % | 3.12 | % | 2.86 | % | 2.99 | % | ||||||||||||||||||
| Net interest margin (FTE)^1^ | 3.68 | % | 3.51 | % | 3.21 | % | 2.95 | % | 3.08 | % |
14
| NBT Bancorp Inc. and Subsidiaries | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Year-to-Date Balance Sheets | ||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||
| Balance | Interest | Rates | Balance | Interest | Rates | |||||||||
| Twelve Months Ended December 31, | 2022 | 2021 | ||||||||||||
| Assets | ||||||||||||||
| Short-term interest-bearing accounts | $ | 440,429 | $ | 3,072 | 0.70 | % | $ | 932,086 | $ | 1,229 | 0.13 | % | ||
| Securities taxable^1^ | 2,424,925 | 43,229 | 1.78 | % | 1,910,641 | 31,962 | 1.67 | % | ||||||
| Securities tax-exempt ^1 5^ | 233,515 | 5,070 | 2.17 | % | 220,759 | 4,929 | 2.23 | % | ||||||
| FRB and FHLB stock | 27,040 | 995 | 3.68 | % | 25,255 | 616 | 2.44 | % | ||||||
| Loans^1 6^ | 7,772,962 | 333,008 | 4.28 | % | 7,543,149 | 302,331 | 4.01 | % | ||||||
| Total interest-earning assets | $ | 10,898,871 | $ | 385,374 | 3.54 | % | $ | 10,631,890 | $ | 341,067 | 3.21 | % | ||
| Other assets | 893,197 | 983,809 | ||||||||||||
| Total assets | $ | 11,792,068 | $ | 11,615,699 | ||||||||||
| Liabilities and stockholders' equity | ||||||||||||||
| Money market deposit accounts | $ | 2,447,978 | $ | 4,955 | 0.20 | % | $ | 2,587,748 | $ | 5,117 | 0.20 | % | ||
| NOW deposit accounts | 1,578,831 | 2,600 | 0.16 | % | 1,452,560 | 738 | 0.05 | % | ||||||
| Savings deposits | 1,829,360 | 592 | 0.03 | % | 1,656,893 | 829 | 0.05 | % | ||||||
| Time deposits | 464,912 | 1,776 | 0.38 | % | 577,150 | 4,030 | 0.70 | % | ||||||
| Total interest-bearing deposits | $ | 6,321,081 | $ | 9,923 | 0.16 | % | $ | 6,274,351 | $ | 10,714 | 0.17 | % | ||
| Federal funds purchased | 14,644 | 588 | 4.02 | % | 17 | - | - | |||||||
| Repurchase agreements | 69,561 | 67 | 0.10 | % | 100,519 | 132 | 0.13 | % | ||||||
| Short-term borrowings | 46,371 | 1,968 | 4.24 | % | 1,302 | 26 | 2.00 | % | ||||||
| Long-term debt | 6,579 | 161 | 2.45 | % | 15,479 | 389 | 2.51 | % | ||||||
| Subordinated debt, net | 98,439 | 5,424 | 5.51 | % | 98,259 | 5,437 | 5.53 | % | ||||||
| Junior subordinated debt | 101,196 | 3,749 | 3.70 | % | 101,196 | 2,090 | 2.07 | % | ||||||
| Total interest-bearing liabilities | $ | 6,657,871 | $ | 21,880 | 0.33 | % | $ | 6,591,123 | $ | 18,788 | 0.29 | % | ||
| Demand deposits | 3,696,957 | 3,565,693 | ||||||||||||
| Other liabilities | 237,857 | 240,434 | ||||||||||||
| Stockholders' equity | 1,199,383 | 1,218,449 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 11,792,068 | $ | 11,615,699 | ||||||||||
| Net interest income (FTE)^1^ | $ | 363,494 | $ | 322,279 | ||||||||||
| Interest rate spread | 3.21 | % | 2.92 | % | ||||||||||
| Net interest margin (FTE)^1^ | 3.34 | % | 3.03 | % | ||||||||||
| Taxable equivalent adjustment | $ | 1,304 | $ | 1,191 | ||||||||||
| Net interest income | $ | 362,190 | $ | 321,088 |
15
| ^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) | |||||||||||||||
| Pre-provision net revenue ("PPNR") | 2022 | 2021 | |||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Net income | $ | 36,121 | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | |||||
| Income tax expense | 10,563 | 11,499 | 10,957 | 11,142 | 10,780 | ||||||||||
| Provision for loan losses | 7,677 | 4,484 | 4,390 | 596 | 3,097 | ||||||||||
| FTE adjustment | 392 | 337 | 290 | 285 | 292 | ||||||||||
| Net securities losses | 217 | 148 | 587 | 179 | 2 | ||||||||||
| Provision for unfunded loan commitments reserve | (185 | ) | 225 | 240 | (260 | ) | (250 | ) | |||||||
| Merger expense | 967 | - | - | - | - | ||||||||||
| Nonrecurring expense | - | - | - | (172 | ) | 250 | |||||||||
| PPNR | $ | 55,752 | $ | 55,666 | $ | 54,239 | $ | 50,896 | $ | 51,481 | |||||
| Average assets | $ | 11,656,525 | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | |||||
| Return on average assets^3^ | 1.23 | % | 1.33 | % | 1.28 | % | 1.32 | % | 1.23 | % | |||||
| PPNR return on average assets^3^ | 1.90 | % | 1.90 | % | 1.83 | % | 1.71 | % | 1.70 | % | |||||
| 12 Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net income | $ | 151,995 | $ | 154,885 | |||||||||||
| Income tax expense | 44,161 | 44,973 | |||||||||||||
| Provision for loan losses | 17,147 | (8,257 | ) | ||||||||||||
| FTE adjustment | 1,304 | 1,191 | |||||||||||||
| Net securities losses (gains) | 1,131 | (566 | ) | ||||||||||||
| Provision for unfunded loan commitments reserve | 20 | (1,300 | ) | ||||||||||||
| Merger expense | 967 | - | |||||||||||||
| Nonrecurring expense | (172 | ) | 4,418 | ||||||||||||
| PPNR | $ | 216,553 | $ | 195,344 | |||||||||||
| Average Assets | $ | 11,792,068 | $ | 11,615,699 | |||||||||||
| Return on average assets | 1.29 | % | 1.33 | % | |||||||||||
| PPNR return on average assets | 1.84 | % | 1.68 | % |
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 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Net interest income | $ | 99,779 | $ | 94,478 | $ | 87,585 | $ | 80,348 | $ | 85,181 | |||||
| Add: FTE adjustment | 392 | 337 | 290 | 285 | 292 | ||||||||||
| Net interest income (FTE) | $ | 100,171 | $ | 94,815 | $ | 87,875 | $ | 80,633 | $ | 85,473 | |||||
| Average earning assets | $ | 10,801,115 | $ | 10,727,291 | $ | 10,983,020 | $ | 11,089,110 | $ | 11,017,224 | |||||
| Net interest margin (FTE)^3^ | 3.68 | % | 3.51 | % | 3.21 | % | 2.95 | % | 3.08 | % | |||||
| 12 Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net interest income | $ | 362,190 | $ | 321,088 | |||||||||||
| Add: FTE adjustment | 1,304 | 1,191 | |||||||||||||
| Net interest income (FTE) | $ | 363,494 | $ | 322,279 | |||||||||||
| Average earning assets | $ | 10,898,871 | $ | 10,631,890 | |||||||||||
| Net interest margin (FTE) | 3.34 | % | 3.03 | % |
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 | |||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Total equity | $ | 1,173,554 | $ | 1,156,546 | $ | 1,188,556 | $ | 1,202,250 | $ | 1,250,453 | |||||
| Intangible assets | 288,545 | 289,083 | 289,259 | 288,832 | 289,468 | ||||||||||
| Total assets | $ | 11,739,296 | $ | 11,640,742 | $ | 11,720,459 | $ | 12,147,833 | $ | 12,012,111 | |||||
| Tangible equity to tangible assets | 7.73 | % | 7.64 | % | 7.87 | % | 7.70 | % | 8.20 | % | |||||
| Return on average tangible common equity | 2022 | 2021 | |||||||||||||
| 4th Q | 3rd Q | 2nd Q | 1st Q | 4th Q | |||||||||||
| Net income | $ | 36,121 | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | |||||
| Amortization of intangible assets (net of tax) | 404 | 408 | 409 | 477 | 488 | ||||||||||
| Net income, excluding intangibles amortization | $ | 36,525 | $ | 39,381 | $ | 38,184 | $ | 39,603 | $ | 37,798 | |||||
| Average stockholders' equity | $ | 1,164,916 | $ | 1,201,656 | $ | 1,190,585 | $ | 1,241,188 | $ | 1,244,751 | |||||
| Less: average goodwill and other intangibles | 288,856 | 289,296 | 289,584 | 289,218 | 289,834 | ||||||||||
| Average tangible common equity | $ | 876,060 | $ | 912,360 | $ | 901,001 | $ | 951,970 | $ | 954,917 | |||||
| Return on average tangible common equity^3^ | 16.54 | % | 17.12 | % | 17.00 | % | 16.87 | % | 15.70 | % | |||||
| 12 Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Net income | $ | 151,995 | $ | 154,885 | |||||||||||
| Amortization of intangible assets (net of tax) | 1,698 | 2,106 | |||||||||||||
| Net income, excluding intangibles amortization | $ | 153,693 | $ | 156,991 | |||||||||||
| Average stockholders' equity | $ | 1,199,383 | $ | 1,218,449 | |||||||||||
| Less: average goodwill and other intangibles | 289,238 | 290,838 | |||||||||||||
| Average tangible common equity | $ | 910,145 | $ | 927,611 | |||||||||||
| Return on average tangible common equity | 16.89 | % | 16.92 | % | |||||||||||
| ^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. | ||||||||||||||
| --- | --- |