NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported
net income and diluted earnings per share for the three and twelve
months ended December 31, 2023.
Net income for the three months ended December
31, 2023 was $30.4 million, or $0.64 per diluted common share,
compared to $36.1 million, or $0.84 per diluted common share, for
the three months ended December 31, 2022, and $24.6 million, or
$0.54 per diluted common share, in the third quarter of 2023.
Operating diluted earnings per share1, a non-GAAP measure, which
excludes acquisition expenses, acquisition-related provision for
credit losses, securities gains (losses) and impairment of a
minority interest equity investment, net of tax, was $0.72 for the
fourth quarter of 2023, compared to $0.86 in the fourth quarter of
2022 and $0.84 in the third quarter of 2023.
Net income for the year ended December 31, 2023
was $118.8 million, or $2.65 per diluted common share, compared to
$152.0 million, or $3.52 per diluted common share, in the prior
year. Operating diluted earnings per share1 was $3.23 for the year
ended December 31, 2023, compared to $3.56 in the prior year.
CEO Comments
“NBT’s fourth quarter and full year results
reflect our consistent dedication to improving our traditional
banking franchise while growing our diversified revenue sources,”
said NBT President and CEO John H. Watt, Jr. “In a year
characterized by unprecedented market volatility, we grew loans and
deposits, maintained strong asset quality, improved our capital
position, completed the high-value acquisition of Salisbury
Bancorp, Inc., and continued to deliver best-in-class customer
service.”
Fourth Quarter Financial Highlights
|
Net Income |
- Net income of $30.4 million and diluted earnings per share of
$0.64
- Operating net income was $33.9 million and diluted operating
earnings per share of $0.721
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|
Net Interest Income / NIM |
- Net interest income on a fully taxable equivalent (“FTE”) basis
was $99.8 million1
- Net interest margin (“NIM”) on an FTE basis was 3.15%1, down 6
basis points (“bps”) from the prior quarter
- Included in FTE net interest income was $2.6 million of
acquisition-related net accretion which positively impacted NIM by
8 bps
- Earning asset yields of 4.79% were up 16 bps from the prior
quarter
- Total cost of funds of 1.72% was up 22 bps from the prior
quarter
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Noninterest Income |
- Excluding net securities gains (losses), noninterest income was
$38.0 million, or 27.7% of total revenues
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|
Loans and Credit Quality |
- Period end total loans of $9.65 billion as of December 31,
2023, up $1.50 billion from December 31, 2022, and included $1.18
billion of loans acquired from Salisbury Bancorp, Inc.
(“Salisbury”)
- Excluding loans acquired from
Salisbury, loans grew $320.6 million, or 3.9%, year-over-year
- Net charge-offs to average loans were 0.22%
- Nonperforming loans to total loans were 0.39%, compared to
0.25% in the prior quarter and 0.26% in the fourth quarter of
2022
- Allowance for loan losses to total loans was 1.19%
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Deposits |
- Deposits were $10.97 billion as of December 31, 2023, up $1.47
billion from December 31, 2022, and included $1.31 billion in
deposits acquired from Salisbury
- Total cost of deposits was 1.51% for the fourth quarter of
2023, up 33 bps from the third quarter
- Full cycle to-date deposit beta of 28%
- Composition of total deposits is diverse and granular with over
563,000 accounts with an average per account balance of
$19,483
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Capital |
- Stockholders’ equity was $1.43 billion as of December 31,
2023
- Tangible book value per share2 was $21.72 at December 31,
2023
- Tangible equity to assets grew 11% to 7.93%1
- CET1 ratio of 11.57%; Leverage ratio of 9.71%
|
Loans
- Period end total loans were $9.65
billion at December 31, 2023, consistent with the end of the third
quarter of 2023 and were $8.15 billion at December 31, 2022.
- Period end total loans increased
$1.50 billion from December 31, 2022, including loans acquired from
Salisbury. Commercial and industrial loans increased $88.2 million
to $1.35 billion; commercial real estate loans increased $819.0
million to $3.63 billion; and total consumer loans increased $593.4
million to $4.67 billion.
- Commercial line of credit
utilization rate was 20% at December 31, 2023, compared to 22% at
September 30, 2023 and 21% at December 31, 2022.
Deposits
- Total deposits at December 31, 2023
were $10.97 billion, compared to $9.50 billion at December 31,
2022. The Company continued to experience incremental migration
from noninterest bearing and low interest checking and savings
accounts into higher cost money market and time deposit
instruments, during each quarter of 2023.
- Loan to deposit ratio was 88.0% at
December 31, 2023, compared to 85.8% at December 31, 2022.
Consistent with historical trends and as seasonally expected,
ending deposits declined from September 30, 2023 to December 31,
2023.
Net Interest Income and Net Interest
Margin
- Net interest income for the fourth
quarter of 2023 was $99.2 million, which was up $4.3 million, or
4.5%, from the third quarter of 2023 and down $0.6 million, or
0.6%, from the fourth quarter of 2022. The increase in net interest
income resulted from the benefit of the full quarter impact of the
Salisbury acquisition and was partially offset by the increase in
cost of funds outpacing the improvement in asset yields during the
quarter.
- The NIM on an FTE basis for the
fourth quarter of 2023 was 3.15%, a decrease of 6 bps from the
third quarter of 2023, driven by an increase in the cost of
interest-bearing deposits, partly offset by an increase in average
earning asset yields and a full quarter impact of
acquisition-related net accretion. The NIM on an FTE basis
decreased 53 bps from the fourth quarter of 2022 due to the
increase in the cost of interest-bearing deposits and higher
short-term borrowings costs and average balances, partially offset
by higher earning asset yields.
- Earning asset yields for the three
months ended December 31, 2023 increased 16 bps from the prior
quarter to 4.79% and increased 77 bps from the same quarter in the
prior year. Average earning assets grew $761.0 million, or 6.4%,
from the third quarter of 2023 due to the Salisbury acquisition and
organic loan growth.
- Total cost of deposits, including
noninterest bearing deposits, was 1.51% for the fourth quarter of
2023, an increase of 33 bps from the prior quarter and up 134 bps
from the same period in the prior year.
- Total cost of funds for the three
months ended December 31, 2023 was 1.72%, up 22 bps from the prior
quarter and up 135 bps from the fourth quarter of 2022.
Asset Quality and Allowance for Loan
Losses
- Net charge-offs to total average
loans was 22 bps compared to 18 bps in both the prior quarter and
in the fourth quarter of 2022. Net charge-offs for the portfolios
in a planned run-off status represented the majority of total net
charge-offs for the quarter and full year.
- Nonperforming assets to total
assets were 0.28% at December 31, 2023, compared to 0.18% at both
September 30, 2023 and December 31, 2022. The increase in
nonperforming assets was attributable to a diversified,
multi-tenant commercial real estate development relationship that
was placed into a nonaccrual status in the fourth quarter of 2023,
in which NBT is a participant. The relationship is being actively
managed and recent appraised values continue to support its
carrying value, and as such, no specific reserve has been
established.
- Provision expense for the three
months ended December 31, 2023 was $5.1 million, compared to $12.6
million for the third quarter of 2023 and $7.7 million for the
fourth quarter of 2022. Included in the provision expense in the
third quarter of 2023 was $8.8 million of acquisition-related
provision for loan losses.
- The allowance for loan losses was
$114.4 million, or 1.19% of total loans, at December 31, 2023,
consistent with September 30, 2023 and 1.24% of total loans at
December 31, 2022. The allowance was consistent with the third
quarter of 2023 and the increase in the allowance for loan losses
from the fourth quarter of 2022 was due to $14.5 million of
allowance for acquired Salisbury loans which included both the $8.8
million of non-purchased credit deteriorated allowance recognized
through the provision for loan losses and the $5.8 million of
purchased credit deteriorated allowance reclassified from
loans.
- The reserve for unfunded loan
commitments increased to $5.1 million at December 31, 2023 compared
to the prior quarter-end at $4.8 million and to $5.1 million at
December 31, 2022. The provision for unfunded loan commitments in
the third quarter of 2023 included $0.8 million of
acquisition-related provision for unfunded loan commitments.
Noninterest Income
- Total noninterest income, excluding
securities gains (losses), was $38.0 million for the three months
ended December 31, 2023, down $2.4 million from the seasonally high
third quarter, and $3.7 million higher, or 10.7%, from the fourth
quarter of 2022.
- Service charges on deposit accounts
were higher than the prior quarter and the fourth quarter of 2022
due primarily to the Salisbury acquisition and new account
growth.
- Retirement plan administration fees
were down $1.6 million from the prior quarter and were $0.6 million
higher than the fourth quarter of 2022. The decrease from the prior
quarter, as expected, was due to certain seasonal activity-based
fees in the third quarter. The increase from the fourth quarter of
2022 included the impact from the acquisition of Retirement Direct,
LLC on July 1, 2023.
- Wealth management fees were
consistent with the prior quarter as certain prior quarter seasonal
activity-based fees were offset by the full quarter addition of
Salisbury revenues and were $1.1 million higher than the fourth
quarter of 2022.
- Insurance services were down $0.7
million from the third quarter which has comparatively higher
levels of policy renewals than the fourth quarter.
Noninterest Expense
- Total noninterest expense was $92.8
million for the fourth quarter of 2023 compared to $90.8 million in
the third quarter of 2023 and $79.5 million in the fourth quarter
of 2022. Total noninterest expense, excluding $0.3 million of
acquisition expenses in the fourth quarter of 2023, $7.9 million in
the third quarter of 2023 and $1.0 million in the fourth quarter of
2022, and the $4.8 million impairment of a minority interest equity
investment in the fourth quarter of 2023 increased 5.9% compared to
the previous quarter primarily due to a full quarter impact of the
Salisbury acquisition and higher professional service fees and
increased 11.7% from the fourth quarter of 2022.
- Salaries and benefits increased
1.6% from the prior quarter driven by the full quarter impact of
the Salisbury acquisition and was partially offset by lower
quarterly incentive costs.
- Technology and data services,
professional fees and outside services, and advertising increased
from the prior quarter and the fourth quarter of 2022 due to the
timing of initiatives that occurred following the completion of the
Salisbury acquisition in the third quarter.
- Amortization of intangible assets
increased $0.5 million from the prior quarter and $1.6 million from
the fourth quarter of 2022 primarily due to the amortization of
intangible assets related to the Salisbury acquisition.
- FDIC assessment expense increased
$0.2 million in the prior quarter primarily due to the acquisition
of Salisbury and increased $1.1 million from the fourth quarter of
2022 driven by the statutory increase in the FDIC assessment
rate.
- In the fourth quarter of 2023, the
Company recorded a full $4.8 million ($0.08 per diluted share)
impairment of its minority interest equity investment in a provider
of financial and technology services to residential solar equipment
installers, due to the uncertainty in the realizability of the
investment.
Income Taxes
- The effective tax rate was 23.5%
for the fourth quarter of 2023 which was up from 22.4% in the third
quarter of 2023 and 22.6% for the fourth quarter of 2022 and
primarily to adjust to a full year tax rate for 2023 of 22.6%,
including assessment of acquisition related items.
Capital
- Tangible common equity to tangible
assets1 was 7.93% at December 31, 2023. Tangible book value per
share2 was $21.72 at December 31, 2023, $20.39 at September 30,
2023 and $20.65 at December 31, 2022.
- Stockholders’ equity increased
$252.1 million from December 31, 2022 driven by the Salisbury
acquisition adding $161.7 million of capital, net income generation
of $118.8 million and a $29.1 million increase in accumulated other
comprehensive income driven by the change in the market value of
securities available for sale, partially offset by dividends
declared of $55.9 million and the repurchase of common stock of
$4.9 million.
- December 31, 2023, CET1 capital
ratio of 11.57%, leverage ratio of 9.71% and total risk-based
capital ratio of 14.75%.
Dividend
- On January 22, 2024, the Board of
Directors approved a first-quarter cash dividend of $0.32 per
share, which represents a $0.02 per quarter, or 6.7%, increase over
the dividend paid in the first quarter of 2023. The dividend will
be paid on March 15, 2024 to stockholders of record as of March 1,
2024.
Stock Repurchase
- The Company purchased 155,500
shares of its common stock during 2023 at an average price of
$31.79 per share under its previously announced share repurchase
program. The repurchase program under which these shares were
purchased expired on December 31, 2023.
- On December 18, 2023, the Board of
Directors authorized and approved an amendment to the Company’s
previously announced stock repurchase program. Pursuant to the
amended stock repurchase program, the Company may repurchase up to
2,000,000 of the currently outstanding shares of its common stock
with all repurchases under the stock repurchase program to be made
by December 31, 2025. The Company may repurchase shares of its
common stock from time to time to mitigate the potential dilutive
effects of stock-based incentive plans and other potential uses of
common stock for corporate purposes.
Conference Call and Webcast
The Company will host a conference call at 8:30
a.m. (Eastern) Wednesday, January 24, 2024, to review fourth
quarter 2023 financial results. The audio webcast link, along with
the corresponding presentation slides, will be available on the
Company’s Event Calendar page at
https://www.nbtbancorp.com/bn/presentations-events.html#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 $13.31 billion
at December 31, 2023. 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 153 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,
including actual or potential stress in the banking industry, 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 the perceived overall value of these
products and services by users; (9) changes in consumer spending,
borrowing and saving habits; (10) changes in the financial
performance and/or condition of the Company’s borrowers; (11)
technological changes; (12) acquisition and integration of acquired
businesses; (13) the possibility that NBT may be unable to achieve
expected synergies and operating efficiencies in the merger within
the expected timeframes; (14) the ability to increase market share
and control expenses; (15) changes in the competitive environment
among financial holding companies; (16) 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, and the Economic Growth, Regulatory Relief, and
Consumer Protection Act of 2018; (17) 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 and other
accounting standard setters; (18) changes in the Company’s
organization, compensation and benefit plans; (19) 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;
(20) greater than expected costs or difficulties related to the
integration of new products and lines of business; 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.
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.
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| NBT
Bancorp Inc. and Subsidiaries |
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Selected Financial Data |
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(unaudited, dollars in thousands except per share data) |
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|
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| |
|
|
|
|
|
| |
2023 |
2022 |
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Profitability (reported) |
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.64 |
|
$ |
0.54 |
|
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
| Weighted
average diluted common shares outstanding |
|
47,356,899 |
|
|
45,398,937 |
|
|
43,126,498 |
|
|
43,125,986 |
|
|
43,144,666 |
|
| Return on
average assets3 |
|
0.89 |
% |
|
0.76 |
% |
|
1.02 |
% |
|
1.16 |
% |
|
1.23 |
% |
| Return on
average equity3 |
|
8.79 |
% |
|
7.48 |
% |
|
9.91 |
% |
|
11.47 |
% |
|
12.30 |
% |
| Return on
average tangible common equity1 3 |
|
13.08 |
% |
|
10.73 |
% |
|
13.13 |
% |
|
15.31 |
% |
|
16.54 |
% |
|
Net interest margin1 3 |
|
3.15 |
% |
|
3.21 |
% |
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
| |
|
|
|
|
|
| |
12 Months Ended December 31, |
|
|
|
| |
|
2023 |
|
|
2022 |
|
|
|
|
|
Profitability (reported) |
|
|
|
|
|
| Diluted
earnings per share |
$ |
2.65 |
|
$ |
3.52 |
|
|
|
|
| Weighted
average diluted common shares outstanding |
|
44,770,171 |
|
|
43,181,312 |
|
|
|
|
| Return on
average assets |
|
0.95 |
% |
|
1.29 |
% |
|
|
|
| Return on
average equity |
|
9.34 |
% |
|
12.67 |
% |
|
|
|
| Return on
average tangible common equity1 |
|
13.02 |
% |
|
16.89 |
% |
|
|
|
|
Net interest margin1 |
|
3.29 |
% |
|
3.34 |
% |
|
|
|
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Profitability (operating) |
|
|
|
|
|
| Diluted
earnings per share1 |
$ |
0.72 |
|
$ |
0.84 |
|
$ |
0.80 |
|
$ |
0.88 |
|
$ |
0.86 |
|
| Return on
average assets1 3 |
|
0.99 |
% |
|
1.19 |
% |
|
1.17 |
% |
|
1.31 |
% |
|
1.26 |
% |
| Return on
average equity1 3 |
|
9.79 |
% |
|
11.65 |
% |
|
11.40 |
% |
|
12.95 |
% |
|
12.61 |
% |
|
Return on average tangible common equity1 3 |
|
14.49 |
% |
|
16.43 |
% |
|
15.08 |
% |
|
17.27 |
% |
|
16.95 |
% |
| |
|
|
|
|
|
| |
12 Months Ended December 31, |
|
|
|
| |
|
2023 |
|
|
2022 |
|
|
|
|
|
Profitability (operating) |
|
|
|
|
|
| Diluted
earnings per share1 |
$ |
3.23 |
|
$ |
3.56 |
|
|
|
|
| Return on
average assets1 |
|
1.16 |
% |
|
1.30 |
% |
|
|
|
| Return on
average equity1 |
|
11.38 |
% |
|
12.81 |
% |
|
|
|
|
Return on average tangible common equity1 |
|
15.78 |
% |
|
17.06 |
% |
|
|
|
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Balance sheet data |
|
|
|
|
|
| Short-term
interest-bearing accounts |
$ |
31,378 |
|
$ |
459,296 |
|
$ |
31,878 |
|
$ |
68,045 |
|
$ |
30,862 |
|
| Securities
available for sale |
|
1,430,858 |
|
|
1,399,032 |
|
|
1,453,926 |
|
|
1,512,008 |
|
|
1,527,225 |
|
| Securities
held to maturity |
|
905,267 |
|
|
914,520 |
|
|
912,876 |
|
|
906,824 |
|
|
919,517 |
|
| Net
loans |
|
9,536,313 |
|
|
9,552,774 |
|
|
8,257,724 |
|
|
8,164,328 |
|
|
8,049,347 |
|
| Total
assets |
|
13,309,040 |
|
|
13,827,628 |
|
|
11,890,497 |
|
|
11,839,730 |
|
|
11,739,296 |
|
| Total
deposits |
|
10,968,994 |
|
|
11,401,452 |
|
|
9,529,919 |
|
|
9,681,205 |
|
|
9,495,933 |
|
| Total
borrowings |
|
637,387 |
|
|
740,603 |
|
|
880,518 |
|
|
703,248 |
|
|
787,950 |
|
| Total
liabilities |
|
11,883,349 |
|
|
12,464,807 |
|
|
10,680,004 |
|
|
10,628,071 |
|
|
10,565,742 |
|
|
Stockholders' equity |
|
1,425,691 |
|
|
1,362,821 |
|
|
1,210,493 |
|
|
1,211,659 |
|
|
1,173,554 |
|
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Capital |
|
|
|
|
|
| Equity to
assets |
|
10.71 |
% |
|
9.86 |
% |
|
10.18 |
% |
|
10.23 |
% |
|
10.00 |
% |
| Tangible
equity ratio1 |
|
7.93 |
% |
|
7.15 |
% |
|
7.95 |
% |
|
7.99 |
% |
|
7.73 |
% |
| Book value
per share |
$ |
30.26 |
|
$ |
28.94 |
|
$ |
28.26 |
|
$ |
28.24 |
|
$ |
27.38 |
|
| Tangible
book value per share2 |
$ |
21.72 |
|
$ |
20.39 |
|
$ |
21.55 |
|
$ |
21.52 |
|
$ |
20.65 |
|
| Leverage
ratio |
|
9.71 |
% |
|
10.23 |
% |
|
10.51 |
% |
|
10.43 |
% |
|
10.32 |
% |
| Common
equity tier 1 capital ratio |
|
11.57 |
% |
|
11.31 |
% |
|
12.29 |
% |
|
12.28 |
% |
|
12.12 |
% |
| Tier 1
capital ratio |
|
12.50 |
% |
|
12.23 |
% |
|
13.35 |
% |
|
13.34 |
% |
|
13.19 |
% |
| Total
risk-based capital ratio |
|
14.75 |
% |
|
14.45 |
% |
|
15.50 |
% |
|
15.53 |
% |
|
15.38 |
% |
|
Common stock price (end of period) |
$ |
41.91 |
|
$ |
31.69 |
|
$ |
31.85 |
|
$ |
33.71 |
|
$ |
43.42 |
|
|
|
|
|
|
|
|
| NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
Asset Quality and Consolidated Loan Balances |
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Asset quality |
|
|
|
|
|
|
Nonaccrual loans |
$ |
34,213 |
|
$ |
20,736 |
|
$ |
16,931 |
|
$ |
16,284 |
|
$ |
17,233 |
|
| 90 days past
due and still accruing |
|
3,661 |
|
|
3,528 |
|
|
2,755 |
|
|
2,328 |
|
|
3,823 |
|
| Total
nonperforming loans |
|
37,874 |
|
|
24,264 |
|
|
19,686 |
|
|
18,612 |
|
|
21,056 |
|
| Other real
estate owned |
|
- |
|
|
- |
|
|
179 |
|
|
105 |
|
|
105 |
|
| Total
nonperforming assets |
|
37,874 |
|
|
24,264 |
|
|
19,865 |
|
|
18,717 |
|
|
21,161 |
|
| Allowance
for loan losses |
|
114,400 |
|
|
114,601 |
|
|
100,400 |
|
|
100,250 |
|
|
100,800 |
|
| |
|
|
|
|
|
|
Asset quality ratios |
|
|
|
|
|
| Allowance
for loan losses to total loans |
|
1.19 |
% |
|
1.19 |
% |
|
1.20 |
% |
|
1.21 |
% |
|
1.24 |
% |
| Total
nonperforming loans to total loans |
|
0.39 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
0.23 |
% |
|
0.26 |
% |
| Total
nonperforming assets to total assets |
|
0.28 |
% |
|
0.18 |
% |
|
0.17 |
% |
|
0.16 |
% |
|
0.18 |
% |
| Allowance
for loan losses to total nonperforming loans |
|
302.05 |
% |
|
472.31 |
% |
|
510.01 |
% |
|
538.63 |
% |
|
478.72 |
% |
| Past due
loans to total loans4 |
|
0.32 |
% |
|
0.49 |
% |
|
0.45 |
% |
|
0.30 |
% |
|
0.33 |
% |
|
Net charge-offs to average loans3 |
|
0.22 |
% |
|
0.18 |
% |
|
0.17 |
% |
|
0.19 |
% |
|
0.18 |
% |
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
| Loan
net charge-offs by line of business |
|
|
|
|
|
|
Commercial |
$ |
1,107 |
|
$ |
(344 |
) |
$ |
92 |
|
$ |
(252 |
) |
$ |
(37 |
) |
| Residential
real estate and home equity |
|
11 |
|
|
(75 |
) |
|
(43 |
) |
|
80 |
|
|
(79 |
) |
| Indirect
auto |
|
399 |
|
|
451 |
|
|
273 |
|
|
423 |
|
|
445 |
|
| Residential
solar |
|
1,081 |
|
|
1,253 |
|
|
581 |
|
|
656 |
|
|
596 |
|
| Other
consumer |
|
2,729 |
|
|
2,919 |
|
|
2,553 |
|
|
2,904 |
|
|
2,752 |
|
|
Total loan net charge-offs |
$ |
5,327 |
|
$ |
4,204 |
|
$ |
3,456 |
|
$ |
3,811 |
|
$ |
3,677 |
|
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Allowance for loan losses as a percentage of loans by
segment |
|
|
|
|
| Commercial
& industrial |
|
0.84 |
% |
|
0.87 |
% |
|
0.86 |
% |
|
0.85 |
% |
|
0.82 |
% |
| Commercial
real estate |
|
0.99 |
% |
|
1.00 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.91 |
% |
| Residential
real estate |
|
0.84 |
% |
|
0.79 |
% |
|
0.73 |
% |
|
0.73 |
% |
|
0.72 |
% |
| Auto |
|
0.83 |
% |
|
0.82 |
% |
|
0.80 |
% |
|
0.77 |
% |
|
0.81 |
% |
| Residential
solar |
|
3.28 |
% |
|
3.19 |
% |
|
3.09 |
% |
|
3.04 |
% |
|
3.21 |
% |
| Other
consumer |
|
4.70 |
% |
|
5.23 |
% |
|
5.98 |
% |
|
6.19 |
% |
|
6.27 |
% |
|
Total |
|
1.19 |
% |
|
1.19 |
% |
|
1.20 |
% |
|
1.21 |
% |
|
1.24 |
% |
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Loans by line of business |
|
|
|
|
|
| Commercial
& industrial |
$ |
1,354,248 |
|
$ |
1,424,579 |
|
$ |
1,319,093 |
|
$ |
1,278,291 |
|
$ |
1,266,031 |
|
| Commercial
real estate |
|
3,626,910 |
|
|
3,575,595 |
|
|
2,884,264 |
|
|
2,845,631 |
|
|
2,807,941 |
|
| Residential
real estate |
|
2,125,804 |
|
|
2,111,670 |
|
|
1,666,204 |
|
|
1,651,918 |
|
|
1,649,870 |
|
| Indirect
auto |
|
1,130,132 |
|
|
1,099,558 |
|
|
1,048,739 |
|
|
1,031,315 |
|
|
989,587 |
|
| Residential
solar |
|
917,755 |
|
|
934,082 |
|
|
926,365 |
|
|
920,084 |
|
|
856,798 |
|
| Home
equity |
|
337,214 |
|
|
340,777 |
|
|
310,897 |
|
|
308,219 |
|
|
314,124 |
|
| Other
consumer |
|
158,650 |
|
|
181,114 |
|
|
202,562 |
|
|
229,120 |
|
|
265,796 |
|
|
Total loans |
$ |
9,650,713 |
|
$ |
9,667,375 |
|
$ |
8,358,124 |
|
$ |
8,264,578 |
|
$ |
8,150,147 |
|
| |
|
|
|
|
|
| NBT
Bancorp Inc. and Subsidiaries |
|
|
|
Consolidated Balance Sheets |
|
|
|
(unaudited, dollars in thousands) |
|
|
| |
|
|
| |
December 31, |
December 31, |
| |
2023 |
2022 |
|
Assets |
|
|
|
Cash and due from banks |
$ |
173,811 |
$ |
166,488 |
| Short-term
interest-bearing accounts |
|
31,378 |
|
30,862 |
| Equity
securities, at fair value |
|
37,591 |
|
30,784 |
| Securities
available for sale, at fair value |
|
1,430,858 |
|
1,527,225 |
| Securities
held to maturity (fair value $814,524 and $812,647,
respectively) |
|
905,267 |
|
919,517 |
| Federal
Reserve and Federal Home Loan Bank stock |
|
45,861 |
|
44,713 |
| Loans held
for sale |
|
3,371 |
|
562 |
| Loans |
|
9,650,713 |
|
8,150,147 |
|
Less allowance for loan losses |
|
114,400 |
|
100,800 |
|
Net loans |
$ |
9,536,313 |
$ |
8,049,347 |
| Premises and
equipment, net |
|
80,675 |
|
69,047 |
|
Goodwill |
|
361,851 |
|
281,204 |
| Intangible
assets, net |
|
40,443 |
|
7,341 |
| Bank owned
life insurance |
|
265,732 |
|
232,409 |
|
Other assets |
|
395,889 |
|
379,797 |
|
Total assets |
$ |
13,309,040 |
$ |
11,739,296 |
| |
|
|
|
Liabilities and stockholders' equity |
|
|
| Demand
(noninterest bearing) |
$ |
3,413,829 |
$ |
3,617,324 |
| Savings, NOW
and money market |
|
6,230,456 |
|
5,444,837 |
|
Time |
|
1,324,709 |
|
433,772 |
|
Total deposits |
$ |
10,968,994 |
$ |
9,495,933 |
| Short-term
borrowings |
|
386,651 |
|
585,012 |
| Long-term
debt |
|
29,796 |
|
4,815 |
| Subordinated
debt, net |
|
119,744 |
|
96,927 |
| Junior
subordinated debt |
|
101,196 |
|
101,196 |
|
Other liabilities |
|
276,968 |
|
281,859 |
|
Total liabilities |
$ |
11,883,349 |
$ |
10,565,742 |
| |
|
|
|
Total stockholders' equity |
$ |
1,425,691 |
$ |
1,173,554 |
| |
|
|
|
Total liabilities and stockholders' equity |
$ |
13,309,040 |
$ |
11,739,296 |
| |
|
|
| 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, |
| |
2023 |
2022 |
2023 |
2022 |
|
Interest, fee and dividend income |
|
|
|
|
|
Interest and fees on loans |
$ |
132,738 |
$ |
95,620 |
|
$ |
462,669 |
|
$ |
332,768 |
|
| Securities
available for sale |
|
7,208 |
|
7,831 |
|
|
29,812 |
|
|
29,653 |
|
| Securities
held to maturity |
|
5,374 |
|
5,050 |
|
|
20,681 |
|
|
17,582 |
|
|
Other |
|
5,594 |
|
671 |
|
|
9,627 |
|
|
4,067 |
|
|
Total interest, fee and dividend income |
$ |
150,914 |
$ |
109,172 |
|
$ |
522,789 |
|
$ |
384,070 |
|
|
Interest expense |
|
|
|
|
|
Deposits |
$ |
42,753 |
$ |
4,092 |
|
$ |
104,641 |
|
$ |
9,923 |
|
| Short-term
borrowings |
|
4,951 |
|
2,510 |
|
|
25,608 |
|
|
2,623 |
|
| Long-term
debt |
|
294 |
|
21 |
|
|
925 |
|
|
161 |
|
| Subordinated
debt |
|
1,795 |
|
1,346 |
|
|
6,076 |
|
|
5,424 |
|
| Junior
subordinated debt |
|
1,948 |
|
1,424 |
|
|
7,320 |
|
|
3,749 |
|
|
Total interest expense |
$ |
51,741 |
$ |
9,393 |
|
$ |
144,570 |
|
$ |
21,880 |
|
| Net interest
income |
$ |
99,173 |
$ |
99,779 |
|
$ |
378,219 |
|
$ |
362,190 |
|
| Provision
for loan losses |
$ |
5,126 |
$ |
7,677 |
|
$ |
16,524 |
|
$ |
17,147 |
|
|
Provision for loan losses - acquisition day 1 non-PCD |
|
- |
|
- |
|
|
8,750 |
|
|
- |
|
|
Total provision for loan losses |
$ |
5,126 |
$ |
7,677 |
|
$ |
25,274 |
|
$ |
17,147 |
|
|
Net interest income after provision for loan losses |
$ |
94,047 |
$ |
92,102 |
|
$ |
352,945 |
|
$ |
345,043 |
|
|
Noninterest income |
|
|
|
|
| Service
charges on deposit accounts |
$ |
4,165 |
$ |
3,598 |
|
$ |
15,425 |
|
$ |
14,630 |
|
| Card
services income |
|
5,360 |
|
4,958 |
|
|
20,829 |
|
|
29,058 |
|
| Retirement
plan administration fees |
|
11,226 |
|
10,661 |
|
|
47,221 |
|
|
48,112 |
|
| Wealth
management |
|
9,152 |
|
8,017 |
|
|
34,763 |
|
|
33,311 |
|
| Insurance
services |
|
3,659 |
|
3,438 |
|
|
15,667 |
|
|
14,696 |
|
| Bank owned
life insurance income |
|
1,776 |
|
1,419 |
|
|
6,750 |
|
|
6,044 |
|
| Net
securities gains (losses) |
|
507 |
|
(217 |
) |
|
(9,315 |
) |
|
(1,131 |
) |
|
Other |
|
2,643 |
|
2,217 |
|
|
10,838 |
|
|
10,858 |
|
|
Total noninterest income |
$ |
38,488 |
$ |
34,091 |
|
$ |
142,178 |
|
$ |
155,578 |
|
|
Noninterest expense |
|
|
|
|
| Salaries and
employee benefits |
$ |
50,013 |
$ |
47,235 |
|
$ |
194,250 |
|
$ |
187,830 |
|
| Technology
and data services |
|
10,174 |
|
9,124 |
|
|
38,163 |
|
|
35,712 |
|
|
Occupancy |
|
7,175 |
|
6,521 |
|
|
28,408 |
|
|
26,282 |
|
| Professional
fees and outside services |
|
5,115 |
|
4,811 |
|
|
17,601 |
|
|
16,810 |
|
| Office
supplies and postage |
|
1,913 |
|
1,699 |
|
|
6,917 |
|
|
6,140 |
|
| FDIC
assessment |
|
1,860 |
|
798 |
|
|
6,257 |
|
|
3,197 |
|
|
Advertising |
|
1,213 |
|
879 |
|
|
3,054 |
|
|
2,822 |
|
| Amortization
of intangible assets |
|
2,131 |
|
538 |
|
|
4,734 |
|
|
2,263 |
|
| Loan
collection and other real estate owned, net |
|
503 |
|
957 |
|
|
2,618 |
|
|
2,647 |
|
| Reserve for
unfunded loan commitments |
|
300 |
|
(185 |
) |
|
30 |
|
|
20 |
|
| Impairment
of a minority interest equity investment |
|
4,750 |
|
- |
|
|
4,750 |
|
|
- |
|
| Acquisition
expenses |
|
254 |
|
967 |
|
|
9,978 |
|
|
967 |
|
|
Other |
|
7,350 |
|
6,165 |
|
|
24,904 |
|
|
19,775 |
|
|
Total noninterest expense |
$ |
92,751 |
$ |
79,509 |
|
$ |
341,664 |
|
$ |
304,465 |
|
| Income
before income tax expense |
$ |
39,784 |
$ |
46,684 |
|
$ |
153,459 |
|
$ |
196,156 |
|
|
Income tax expense |
|
9,338 |
|
10,563 |
|
|
34,677 |
|
|
44,161 |
|
|
Net income |
$ |
30,446 |
$ |
36,121 |
|
$ |
118,782 |
|
$ |
151,995 |
|
|
Earnings Per Share |
|
|
|
|
| Basic |
$ |
0.65 |
$ |
0.84 |
|
$ |
2.67 |
|
$ |
3.54 |
|
|
Diluted |
$ |
0.64 |
$ |
0.84 |
|
$ |
2.65 |
|
$ |
3.52 |
|
| |
|
|
|
|
| NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
Quarterly Consolidated Statements of Income |
|
|
|
|
|
|
(unaudited, dollars in thousands except per share data) |
|
|
|
|
| |
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
| |
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|
Interest, fee and dividend income |
|
|
|
|
|
|
Interest and fees on loans |
$ |
132,738 |
$ |
122,097 |
|
$ |
106,935 |
|
$ |
100,899 |
|
$ |
95,620 |
|
| Securities
available for sale |
|
7,208 |
|
7,495 |
|
|
7,493 |
|
|
7,616 |
|
|
7,831 |
|
| Securities
held to maturity |
|
5,374 |
|
5,281 |
|
|
4,991 |
|
|
5,035 |
|
|
5,050 |
|
|
Other |
|
5,594 |
|
2,221 |
|
|
1,170 |
|
|
642 |
|
|
671 |
|
|
Total interest, fee and dividend income |
$ |
150,914 |
$ |
137,094 |
|
$ |
120,589 |
|
$ |
114,192 |
|
$ |
109,172 |
|
|
Interest expense |
|
|
|
|
|
|
Deposits |
$ |
42,753 |
$ |
30,758 |
|
$ |
19,986 |
|
$ |
11,144 |
|
$ |
4,092 |
|
| Short-term
borrowings |
|
4,951 |
|
7,612 |
|
|
8,126 |
|
|
4,919 |
|
|
2,510 |
|
| Long-term
debt |
|
294 |
|
294 |
|
|
290 |
|
|
47 |
|
|
21 |
|
| Subordinated
debt |
|
1,795 |
|
1,612 |
|
|
1,335 |
|
|
1,334 |
|
|
1,346 |
|
| Junior
subordinated debt |
|
1,948 |
|
1,923 |
|
|
1,767 |
|
|
1,682 |
|
|
1,424 |
|
|
Total interest expense |
$ |
51,741 |
$ |
42,199 |
|
$ |
31,504 |
|
$ |
19,126 |
|
$ |
9,393 |
|
| Net interest
income |
$ |
99,173 |
$ |
94,895 |
|
$ |
89,085 |
|
$ |
95,066 |
|
$ |
99,779 |
|
| Provision
for loan losses |
$ |
5,126 |
$ |
3,883 |
|
$ |
3,606 |
|
$ |
3,909 |
|
$ |
7,677 |
|
|
Provision for loan losses - acquisition day 1 non-PCD |
|
- |
|
8,750 |
|
|
- |
|
|
- |
|
|
- |
|
|
Total provision for loan losses |
$ |
5,126 |
$ |
12,633 |
|
$ |
3,606 |
|
$ |
3,909 |
|
$ |
7,677 |
|
|
Net interest income after provision for loan losses |
$ |
94,047 |
$ |
82,262 |
|
$ |
85,479 |
|
$ |
91,157 |
|
$ |
92,102 |
|
|
Noninterest income |
|
|
|
|
|
| Service
charges on deposit accounts |
$ |
4,165 |
$ |
3,979 |
|
$ |
3,733 |
|
$ |
3,548 |
|
$ |
3,598 |
|
| Card
services income |
|
5,360 |
|
5,503 |
|
|
5,121 |
|
|
4,845 |
|
|
4,958 |
|
| Retirement
plan administration fees |
|
11,226 |
|
12,798 |
|
|
11,735 |
|
|
11,462 |
|
|
10,661 |
|
| Wealth
management |
|
9,152 |
|
9,297 |
|
|
8,227 |
|
|
8,087 |
|
|
8,017 |
|
| Insurance
services |
|
3,659 |
|
4,361 |
|
|
3,716 |
|
|
3,931 |
|
|
3,438 |
|
| Bank owned
life insurance income |
|
1,776 |
|
1,568 |
|
|
1,528 |
|
|
1,878 |
|
|
1,419 |
|
| Net
securities gains (losses) |
|
507 |
|
(183 |
) |
|
(4,641 |
) |
|
(4,998 |
) |
|
(217 |
) |
|
Other |
|
2,643 |
|
2,913 |
|
|
2,626 |
|
|
2,656 |
|
|
2,217 |
|
|
Total noninterest income |
$ |
38,488 |
$ |
40,236 |
|
$ |
32,045 |
|
$ |
31,409 |
|
$ |
34,091 |
|
|
Noninterest expense |
|
|
|
|
|
| Salaries and
employee benefits |
$ |
50,013 |
$ |
49,248 |
|
$ |
46,834 |
|
$ |
48,155 |
|
$ |
47,235 |
|
| Technology
and data services |
|
10,174 |
|
9,677 |
|
|
9,305 |
|
|
9,007 |
|
|
9,124 |
|
|
Occupancy |
|
7,175 |
|
7,090 |
|
|
6,923 |
|
|
7,220 |
|
|
6,521 |
|
| Professional
fees and outside services |
|
5,115 |
|
4,149 |
|
|
4,159 |
|
|
4,178 |
|
|
4,811 |
|
| Office
supplies and postage |
|
1,913 |
|
1,700 |
|
|
1,676 |
|
|
1,628 |
|
|
1,699 |
|
| FDIC
assessment |
|
1,860 |
|
1,657 |
|
|
1,344 |
|
|
1,396 |
|
|
798 |
|
|
Advertising |
|
1,213 |
|
667 |
|
|
525 |
|
|
649 |
|
|
879 |
|
| Amortization
of intangible assets |
|
2,131 |
|
1,609 |
|
|
458 |
|
|
536 |
|
|
538 |
|
| Loan
collection and other real estate owned, net |
|
503 |
|
569 |
|
|
691 |
|
|
855 |
|
|
957 |
|
| Reserve for
unfunded loan commitments |
|
300 |
|
460 |
|
|
(100 |
) |
|
(630 |
) |
|
(185 |
) |
| Impairment
of a minority interest equity investment |
|
4,750 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Acquisition
expenses |
|
254 |
|
7,917 |
|
|
1,189 |
|
|
618 |
|
|
967 |
|
|
Other |
|
7,350 |
|
6,054 |
|
|
5,790 |
|
|
5,710 |
|
|
6,165 |
|
|
Total noninterest expense |
$ |
92,751 |
$ |
90,797 |
|
$ |
78,794 |
|
$ |
79,322 |
|
$ |
79,509 |
|
| Income
before income tax expense |
$ |
39,784 |
$ |
31,701 |
|
$ |
38,730 |
|
$ |
43,244 |
|
$ |
46,684 |
|
|
Income tax expense |
|
9,338 |
|
7,095 |
|
|
8,658 |
|
|
9,586 |
|
|
10,563 |
|
|
Net income |
$ |
30,446 |
$ |
24,606 |
|
$ |
30,072 |
|
$ |
33,658 |
|
$ |
36,121 |
|
|
Earnings Per Share |
|
|
|
|
|
| Basic |
$ |
0.65 |
$ |
0.54 |
|
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
|
Diluted |
$ |
0.64 |
$ |
0.54 |
|
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
| |
|
|
|
|
|
| NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
AverageBalance |
Yield
/Rates |
AverageBalance |
Yield
/Rates |
AverageBalance |
Yield
/Rates |
AverageBalance |
Yield
/Rates |
AverageBalance |
Yield
/Rates |
| |
|
Q4 - 2023 |
Q3 - 2023 |
Q2 - 2023 |
Q1 - 2023 |
Q4 - 2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term interest-bearing accounts |
|
$ |
319,907 |
5.59 |
% |
$ |
121,384 |
4.26 |
% |
$ |
28,473 |
3.62 |
% |
$ |
34,215 |
2.26 |
% |
$ |
39,573 |
3.31 |
% |
| Securities
taxable1 |
|
|
2,310,409 |
1.88 |
% |
|
2,364,809 |
1.90 |
% |
|
2,394,027 |
1.90 |
% |
|
2,442,732 |
1.92 |
% |
|
2,480,959 |
1.88 |
% |
| Securities
tax-exempt 1 5 |
|
|
232,575 |
3.51 |
% |
|
219,427 |
3.34 |
% |
|
201,499 |
2.83 |
% |
|
202,321 |
2.81 |
% |
|
208,238 |
2.68 |
% |
| FRB and FHLB
stock |
|
|
47,994 |
8.98 |
% |
|
53,841 |
6.76 |
% |
|
51,454 |
7.12 |
% |
|
41,144 |
4.45 |
% |
|
32,903 |
4.11 |
% |
|
Loans1 6 |
|
|
9,653,191 |
5.47 |
% |
|
9,043,582 |
5.36 |
% |
|
8,307,894 |
5.17 |
% |
|
8,189,520 |
5.00 |
% |
|
8,039,442 |
4.72 |
% |
|
Total interest-earning assets |
|
$ |
12,564,076 |
4.79 |
% |
$ |
11,803,043 |
4.63 |
% |
$ |
10,983,347 |
4.42 |
% |
$ |
10,909,932 |
4.26 |
% |
$ |
10,801,115 |
4.02 |
% |
|
Other assets |
|
|
1,052,024 |
|
|
968,220 |
|
|
835,424 |
|
|
836,879 |
|
|
855,410 |
|
|
Total assets |
|
$ |
13,616,100 |
|
$ |
12,771,263 |
|
$ |
11,818,771 |
|
$ |
11,746,811 |
|
$ |
11,656,525 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
| Money market
deposit accounts |
|
$ |
3,045,531 |
3.43 |
% |
$ |
2,422,451 |
2.91 |
% |
$ |
2,113,965 |
2.30 |
% |
$ |
2,081,210 |
1.22 |
% |
$ |
2,169,192 |
0.39 |
% |
| NOW deposit
accounts |
|
|
1,645,401 |
0.80 |
% |
|
1,513,420 |
0.57 |
% |
|
1,463,953 |
0.38 |
% |
|
1,598,834 |
0.36 |
% |
|
1,604,096 |
0.33 |
% |
| Savings
deposits |
|
|
1,666,915 |
0.04 |
% |
|
1,707,094 |
0.04 |
% |
|
1,708,874 |
0.03 |
% |
|
1,781,465 |
0.03 |
% |
|
1,823,056 |
0.03 |
% |
|
Time deposits |
|
|
1,343,548 |
3.81 |
% |
|
1,178,352 |
3.60 |
% |
|
856,305 |
2.97 |
% |
|
639,645 |
2.10 |
% |
|
432,110 |
0.41 |
% |
|
Total interest-bearing deposits |
|
$ |
7,701,395 |
2.20 |
% |
$ |
6,821,317 |
1.79 |
% |
$ |
6,143,097 |
1.30 |
% |
$ |
6,101,154 |
0.74 |
% |
$ |
6,028,454 |
0.27 |
% |
| Federal
funds purchased |
|
|
217 |
5.48 |
% |
|
6,033 |
5.39 |
% |
|
48,407 |
5.35 |
% |
|
44,334 |
4.92 |
% |
|
56,576 |
4.03 |
% |
| Repurchase
agreements |
|
|
82,387 |
1.59 |
% |
|
71,516 |
1.40 |
% |
|
55,627 |
1.08 |
% |
|
71,340 |
0.08 |
% |
|
76,334 |
0.11 |
% |
| Short-term
borrowings |
|
|
345,250 |
5.31 |
% |
|
540,380 |
5.34 |
% |
|
557,818 |
5.27 |
% |
|
357,200 |
4.96 |
% |
|
177,533 |
4.28 |
% |
| Long-term
debt |
|
|
29,809 |
3.91 |
% |
|
29,800 |
3.91 |
% |
|
29,773 |
3.91 |
% |
|
7,299 |
2.61 |
% |
|
3,817 |
2.18 |
% |
| Subordinated
debt, net |
|
|
119,531 |
5.96 |
% |
|
109,160 |
5.86 |
% |
|
97,081 |
5.52 |
% |
|
96,966 |
5.58 |
% |
|
97,839 |
5.46 |
% |
|
Junior subordinated debt |
|
|
101,196 |
7.64 |
% |
|
101,196 |
7.54 |
% |
|
101,196 |
7.00 |
% |
|
101,196 |
6.74 |
% |
|
101,196 |
5.58 |
% |
|
Total interest-bearing liabilities |
|
$ |
8,379,785 |
2.45 |
% |
$ |
7,679,402 |
2.18 |
% |
$ |
7,032,999 |
1.80 |
% |
$ |
6,779,489 |
1.14 |
% |
$ |
6,541,749 |
0.57 |
% |
| Demand
deposits |
|
|
3,535,815 |
|
|
3,498,424 |
|
|
3,316,955 |
|
|
3,502,489 |
|
|
3,658,965 |
|
| Other
liabilities |
|
|
326,857 |
|
|
287,751 |
|
|
251,511 |
|
|
274,517 |
|
|
290,895 |
|
|
Stockholders' equity |
|
|
1,373,643 |
|
|
1,305,686 |
|
|
1,217,306 |
|
|
1,190,316 |
|
|
1,164,916 |
|
|
Total liabilities and stockholders' equity |
|
$ |
13,616,100 |
|
$ |
12,771,263 |
|
$ |
11,818,771 |
|
$ |
11,746,811 |
|
$ |
11,656,525 |
|
| Interest
rate spread |
|
|
2.34 |
% |
|
2.45 |
% |
|
2.62 |
% |
|
3.12 |
% |
|
3.45 |
% |
| Net interest
margin (FTE)1 |
|
|
3.15 |
% |
|
3.21 |
% |
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| 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, |
|
2023 |
2022 |
|
Assets |
|
|
|
|
|
|
|
|
Short-term interest-bearing accounts |
|
$ |
126,765 |
$ |
6,259 |
4.94 |
% |
$ |
440,429 |
$ |
3,072 |
0.70 |
% |
| Securities
taxable1 |
|
|
2,377,596 |
|
45,176 |
1.90 |
% |
|
2,424,925 |
|
43,229 |
1.78 |
% |
| Securities
tax-exempt1 5 |
|
|
214,053 |
|
6,730 |
3.14 |
% |
|
233,515 |
|
5,070 |
2.17 |
% |
| FRB and FHLB
stock |
|
|
48,641 |
|
3,368 |
6.92 |
% |
|
27,040 |
|
995 |
3.68 |
% |
|
Loans1 6 |
|
|
8,803,228 |
|
463,290 |
5.26 |
% |
|
7,772,962 |
|
333,008 |
4.28 |
% |
|
Total interest-earning assets |
|
$ |
11,570,283 |
$ |
524,823 |
4.54 |
% |
$ |
10,898,871 |
$ |
385,374 |
3.54 |
% |
|
Other assets |
|
|
923,850 |
|
|
|
893,197 |
|
|
|
Total assets |
|
$ |
12,494,133 |
|
|
$ |
11,792,068 |
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
| Money market
deposit accounts |
|
$ |
2,418,450 |
$ |
62,475 |
2.58 |
% |
$ |
2,447,978 |
$ |
4,955 |
0.20 |
% |
| NOW deposit
accounts |
|
|
1,555,414 |
|
8,298 |
0.53 |
% |
|
1,578,831 |
|
2,600 |
0.16 |
% |
| Savings
deposits |
|
|
1,715,749 |
|
650 |
0.04 |
% |
|
1,829,360 |
|
592 |
0.03 |
% |
|
Time deposits |
|
|
1,006,867 |
|
33,218 |
3.30 |
% |
|
464,912 |
|
1,776 |
0.38 |
% |
|
Total interest-bearing deposits |
|
$ |
6,696,480 |
$ |
104,641 |
1.56 |
% |
$ |
6,321,081 |
$ |
9,923 |
0.16 |
% |
| Federal
funds purchased |
|
|
24,575 |
|
1,269 |
5.16 |
% |
|
14,644 |
|
588 |
4.02 |
% |
| Repurchase
agreements |
|
|
70,251 |
|
747 |
1.06 |
% |
|
69,561 |
|
67 |
0.10 |
% |
| Short-term
borrowings |
|
|
450,377 |
|
23,592 |
5.24 |
% |
|
46,371 |
|
1,968 |
4.24 |
% |
| Long-term
debt |
|
|
24,247 |
|
925 |
3.81 |
% |
|
6,579 |
|
161 |
2.45 |
% |
| Subordinated
debt, net |
|
|
105,756 |
|
6,076 |
5.75 |
% |
|
98,439 |
|
5,424 |
5.51 |
% |
|
Junior subordinated debt |
|
|
101,196 |
|
7,320 |
7.23 |
% |
|
101,196 |
|
3,749 |
3.70 |
% |
|
Total interest-bearing liabilities |
|
$ |
7,472,882 |
$ |
144,570 |
1.93 |
% |
$ |
6,657,871 |
$ |
21,880 |
0.33 |
% |
| Demand
deposits |
|
|
3,463,608 |
|
|
|
3,696,957 |
|
|
| Other
liabilities |
|
|
285,310 |
|
|
|
237,857 |
|
|
|
Stockholders' equity |
|
|
1,272,333 |
|
|
|
1,199,383 |
|
|
|
Total liabilities and stockholders' equity |
|
$ |
12,494,133 |
|
|
$ |
11,792,068 |
|
|
|
Net interest income (FTE)1 |
|
|
$ |
380,253 |
|
|
$ |
363,494 |
|
| Interest
rate spread |
|
|
|
2.61 |
% |
|
|
3.21 |
% |
| Net interest
margin (FTE)1 |
|
|
|
3.29 |
% |
|
|
3.34 |
% |
| Taxable
equivalent adjustment |
|
|
$ |
2,034 |
|
|
$ |
1,304 |
|
| Net interest
income |
|
|
$ |
378,219 |
|
|
$ |
362,190 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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) |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
2023 |
2022 |
| |
|
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
| |
Operating net income |
|
|
|
|
|
|
|
Net income |
$ |
30,446 |
|
$ |
24,606 |
|
$ |
30,072 |
|
$ |
33,658 |
|
$ |
36,121 |
|
| |
Acquisition
expenses |
|
254 |
|
|
7,917 |
|
|
1,189 |
|
|
618 |
|
|
967 |
|
| |
Acquisition-related provision for credit losses |
|
- |
|
|
8,750 |
|
|
- |
|
|
- |
|
|
- |
|
| |
Acquisition-related reserve for unfunded loan commitments |
|
- |
|
|
836 |
|
|
- |
|
|
- |
|
|
- |
|
| |
Impairment
of a minority interest equity investment |
|
4,750 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| |
Securities
(gains) losses |
|
(507 |
) |
|
183 |
|
|
4,641 |
|
|
4,998 |
|
|
217 |
|
| |
Adjustment to net income |
$ |
4,497 |
|
$ |
17,686 |
|
$ |
5,830 |
|
$ |
5,616 |
|
$ |
1,184 |
|
| |
Adjustment to net income (net of tax) |
$ |
3,435 |
|
$ |
13,730 |
|
$ |
4,525 |
|
$ |
4,341 |
|
$ |
913 |
|
| |
Operating net income |
$ |
33,881 |
|
$ |
38,336 |
|
$ |
34,597 |
|
$ |
37,999 |
|
$ |
37,034 |
|
| |
Operating
diluted earnings per share |
$ |
0.72 |
|
$ |
0.84 |
|
$ |
0.80 |
|
$ |
0.88 |
|
$ |
0.86 |
|
| |
|
|
|
|
|
|
| |
|
12 Months Ended December 31, |
|
|
|
| |
|
|
2023 |
|
|
2022 |
|
|
|
|
| |
Operating net income |
|
|
|
|
|
| |
Net income |
$ |
118,782 |
|
$ |
151,995 |
|
|
|
|
| |
Acquisition
expenses |
|
9,978 |
|
|
967 |
|
|
|
|
| |
Acquisition-related provision for credit losses |
|
8,750 |
|
|
- |
|
|
|
|
| |
Acquisition-related reserve for unfunded loan commitments |
|
836 |
|
|
- |
|
|
|
|
| |
Impairment
of a minority interest equity investment |
|
4,750 |
|
|
- |
|
|
|
|
| |
Securities
losses |
|
9,315 |
|
|
1,131 |
|
|
|
|
| |
Adjustment to net income |
$ |
33,629 |
|
$ |
2,098 |
|
|
|
|
| |
Adjustment to net income (net of tax) |
$ |
25,965 |
|
$ |
1,623 |
|
|
|
|
| |
Operating net income |
$ |
144,747 |
|
$ |
153,618 |
|
|
|
|
| |
Operating
diluted earnings per share |
$ |
3.23 |
|
$ |
3.56 |
|
|
|
|
| |
|
|
|
|
|
|
| |
|
2023 |
2022 |
| |
|
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
| |
FTE
adjustment |
|
|
|
|
|
| |
Net interest
income |
$ |
99,173 |
|
$ |
94,895 |
|
$ |
89,085 |
|
$ |
95,066 |
|
$ |
99,779 |
|
| |
Add: FTE adjustment |
|
669 |
|
|
568 |
|
|
402 |
|
|
395 |
|
|
392 |
|
| |
Net interest
income (FTE) |
$ |
99,842 |
|
$ |
95,463 |
|
$ |
89,487 |
|
$ |
95,461 |
|
$ |
100,171 |
|
| |
Average
earning assets |
$ |
12,564,076 |
|
$ |
11,803,043 |
|
$ |
10,983,347 |
|
$ |
10,909,932 |
|
$ |
10,801,115 |
|
| |
Net interest
margin (FTE)3 |
|
3.15 |
% |
|
3.21 |
% |
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
| |
|
|
|
|
|
|
| |
|
12 Months Ended December 31, |
|
|
|
| |
|
|
2023 |
|
|
2022 |
|
|
|
|
| |
FTE
adjustment |
|
|
|
|
|
| |
Net interest
income |
$ |
378,219 |
|
$ |
362,190 |
|
|
|
|
| |
Add: FTE adjustment |
|
2,034 |
|
|
1,304 |
|
|
|
|
| |
Net interest
income (FTE) |
$ |
380,253 |
|
$ |
363,494 |
|
|
|
|
| |
Average
earning assets |
$ |
11,570,283 |
|
$ |
10,898,871 |
|
|
|
|
| |
Net interest
margin (FTE) |
|
3.29 |
% |
|
3.34 |
% |
|
|
|
| |
|
|
|
|
|
|
| |
Interest income for
tax-exempt securities and loans have been adjusted to an FTE basis
using the statutory Federal income tax rate of 21%. |
| |
|
|
|
|
|
|
| 1 |
The following tables
provide the Non-GAAP reconciliations for the Non-GAAP measures
contained in this release: |
| |
|
|
|
|
|
|
| |
Non-GAAP measures (continued) |
|
|
|
|
|
| |
(unaudited, dollars in thousands) |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
2023 |
2022 |
| |
|
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
| |
Tangible equity to tangible assets |
|
|
|
|
|
|
|
Total equity |
$ |
1,425,691 |
|
$ |
1,362,821 |
|
$ |
1,210,493 |
|
$ |
1,211,659 |
|
$ |
1,173,554 |
|
| |
Intangible
assets |
|
402,294 |
|
|
402,745 |
|
|
287,701 |
|
|
288,159 |
|
|
288,545 |
|
| |
Total
assets |
$ |
13,309,040 |
|
$ |
13,827,628 |
|
$ |
11,890,497 |
|
$ |
11,839,730 |
|
$ |
11,739,296 |
|
| |
Tangible
equity to tangible assets |
|
7.93 |
% |
|
7.15 |
% |
|
7.95 |
% |
|
7.99 |
% |
|
7.73 |
% |
| |
|
|
|
|
|
|
| |
|
2023 |
2022 |
| |
|
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
| |
Return on average tangible common equity |
|
|
|
|
| |
Net
income |
$ |
30,446 |
|
$ |
24,606 |
|
$ |
30,072 |
|
$ |
33,658 |
|
$ |
36,121 |
|
| |
Amortization
of intangible assets (net of tax) |
|
1,599 |
|
|
1,206 |
|
|
344 |
|
|
402 |
|
|
404 |
|
| |
Net income, excluding intangibles amortization |
$ |
32,045 |
|
$ |
25,812 |
|
$ |
30,416 |
|
$ |
34,060 |
|
$ |
36,525 |
|
| |
|
|
|
|
|
|
| |
Average
stockholders' equity |
$ |
1,373,643 |
|
$ |
1,305,686 |
|
$ |
1,217,306 |
|
$ |
1,190,316 |
|
$ |
1,164,916 |
|
| |
Less:
average goodwill and other intangibles |
|
401,978 |
|
|
350,912 |
|
|
287,974 |
|
|
288,354 |
|
|
288,856 |
|
| |
Average tangible common equity |
$ |
971,665 |
|
$ |
954,774 |
|
$ |
929,332 |
|
$ |
901,962 |
|
$ |
876,060 |
|
| |
Return on
average tangible common equity3 |
|
13.08 |
% |
|
10.73 |
% |
|
13.13 |
% |
|
15.31 |
% |
|
16.54 |
% |
| |
|
|
|
|
|
|
| |
|
12 Months Ended December 31, |
|
|
|
| |
|
|
2023 |
|
|
2022 |
|
|
|
|
| |
Return on average tangible common equity |
|
|
|
|
| |
Net
income |
$ |
118,782 |
|
$ |
151,995 |
|
|
|
|
| |
Amortization
of intangible assets (net of tax) |
|
3,551 |
|
|
1,698 |
|
|
|
|
| |
Net income, excluding intangibles amortization |
$ |
122,333 |
|
$ |
153,693 |
|
|
|
|
| |
|
|
|
|
|
|
| |
Average
stockholders' equity |
$ |
1,272,333 |
|
$ |
1,199,383 |
|
|
|
|
| |
Less:
average goodwill and other intangibles |
|
332,667 |
|
|
289,238 |
|
|
|
|
| |
Average tangible common equity |
$ |
939,666 |
|
$ |
910,145 |
|
|
|
|
| |
Return on
average tangible common equity |
|
13.02 |
% |
|
16.89 |
% |
|
|
|
| |
|
|
|
|
|
|
| 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. |
| 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 |
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