NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported
net income and diluted earnings per share for the three and six
months ended June 30, 2023.
Net income for the three months ended June 30,
2023 was $30.1 million, or $0.70 per diluted common share, compared
to $37.8 million, or $0.88 per diluted share, for the three months
ended June 30, 2022, and $33.7 million, or $0.78 per diluted share,
in the first quarter of 2023.
- Excluding the impact of securities
losses and acquisition expenses, the Company generated $0.80 per
diluted share of earnings in the second quarter of 2023, compared
to $0.89 per share in the second quarter of 2022 and $0.88 per
share in the first quarter of 2023. Net interest income was
impacted on a linked quarter basis from the continuation of higher
funding costs.
- In the second quarter of 2023, the
Company realized $4.5 million ($0.08 per diluted share) in
securities losses. In the first quarter of 2023, the Company
realized a $5.0 million ($0.09 per diluted share) securities
loss.
- The Company incurred acquisition
expenses of $1.2 million ($0.02 per diluted share) and $0.6 million
($0.01 per diluted share) related to the pending merger with
Salisbury Bancorp, Inc. (“Salisbury”) in the second quarter of 2023
and the first quarter of 2023, respectively.
- Period end total loans increased
$208.0 million from December 31, 2022, or 5.1% annualized.
CEO Comments
“We delivered solid operating performance for
the second quarter and the first half of 2023. Our results reflect
the ongoing focus on our long-term strategies, the strength of our
balance sheet and our diversified business model,” said NBT
President and CEO John H. Watt, Jr. “We grew loans in all our core
portfolios in the second quarter, and our funding sources remained
resilient. Our credit performance remained consistent and
favorable, and we continued to grow capital. We were also very
pleased to have received all the regulatory and shareholder
approvals required to proceed with our planned combination with
Salisbury Bancorp. We expect the merger to close on August 11,
2023. Our integration team with representatives from NBT and
Salisbury has worked diligently to ensure the best possible
customer experience upon the conversion of Salisbury customer
relationships,” said Watt.
Second Quarter Financial Highlights
Net Income |
- Net income of $30.1 million
- Diluted earnings per share of $0.70
- Excluding acquisition expenses and securities losses, diluted
earnings per share of $0.80
|
Net Interest Income / NIM |
- Net interest income on a fully taxable equivalent (“FTE”) basis
was $89.5 million1
- Net interest margin (“NIM”) on an FTE basis was 3.27%1, down 28
basis points (“bps”) from the prior quarter
- Earning asset yields of 4.42%, up 16 bps from the prior
quarter
- Total cost of funds of 1.22%, up 47 bps from the prior
quarter
|
Noninterest Income |
- Excluding securities losses, noninterest income was $36.7
million and was 29.2% of total revenue
|
Loans and Credit Quality |
- Period end total loans of $8.36 billion as of June 30, 2023, up
$208.0 million, or 5.1%, annualized, from December 31, 2022
- Net charge-offs to average loans were 0.17%, annualized
- Nonperforming loans to total loans was 0.24%, compared to 0.23%
in the prior quarter and down from 0.33% in the second quarter of
2022
- Allowance for loan losses to total loans of 1.20%
|
Deposits |
- Deposits were $9.53 billion as of June 30, 2023, up $34.0
million, or 0.4%, from December 31, 2022
- Total cost of deposits was 0.85% for the second quarter of
2023, up 38 bps from the prior quarter
- Full cycle to-date deposit beta of 17%
- Deposit composition is diverse and granular with over 523,000
accounts with an average per account balance of $18,202
|
Capital |
- Stockholders’ equity was $1.21 billion as of June 30, 2023
- Tangible book value per share2 was $21.55 at June 30, 2023,
consistent with the first quarter of 2023 and 2.7% higher than the
second quarter of 2022
- Tangible equity to assets of 7.95%1
- CET1 ratio of 12.29%; Leverage ratio of 10.51%
|
Loans
- Period end total loans were $8.36
billion at June 30, 2023, $8.26 billion at March 31, 2023 and $8.15
billion at December 31, 2022.
- Period end loans increased $208.0
million from December 31, 2022. Commercial and industrial loans
increased $53.1 million to $1.32 billion; commercial real estate
loans increased $76.3 million to $2.88 billion; and total consumer
loans increased $78.6 million to $4.15 billion. Included in total
consumer loans is $158 million of a portfolio of loans in a run-off
status.
- Commercial line of credit
utilization rate was 23% at June 30, 2023, compared to 22% at March
31, 2023 and 23% at June 30, 2022.
Deposits
- Total deposits at June 30, 2023
were $9.53 billion, compared to $9.50 billion at December 31, 2022.
The Company continues to experience migration from noninterest
bearing and low interest checking and savings accounts into higher
cost money market and time deposit instruments.
- Loan to deposit ratio was 87.7% at
June 30, 2023, compared to 85.8% at December 31, 2022.
Net Interest Income and Net Interest Margin
- Net interest income for the second
quarter of 2023 was $89.1 million, which was down $6.0 million, or
6.3%, from the first quarter of 2023 and up $1.5 million, or 1.7%,
from the second quarter of 2022.
- The NIM on an FTE basis for the
second quarter of 2023 was 3.27%, down 28 bps from the first
quarter of 2023 driven by the increase in the cost of
interest-bearing deposits, as well as a $200.6 million increase in
the average balance of short-term borrowings and a 31 bp increase
on the rates paid on those borrowings. The NIM on an FTE basis was
up 6 bps from the second quarter of 2022 due to higher earning
asset yields partially offset by the increase in the cost of
interest-bearing deposits, as well as higher balances in short-term
borrowings and the rates paid on those borrowings.
- Earning asset yields for the three
months ended June 30, 2023 were up 16 bps from the prior quarter to
5.17% and up 107 bps from the same quarter in the prior year.
Earning assets grew $73.4 million, or 0.7%, from the first quarter
of 2023, or 2.7% annualized.
- Total cost of deposits, including
noninterest bearing deposits, was 0.85% for the second quarter of
2023, up 38 bps from the prior quarter and up 78 bps from the same
period in the prior year.
- Total cost of funds for the three
months ended June 30, 2023 was 1.22%, up 47 bps from the prior
quarter and up 107 bps from the second quarter of 2022.
Asset Quality and Allowance for Loan
Losses
- Net charge-offs to total average
loans was 17 bps compared to 19 bps in the prior quarter and 4 bps
in the second quarter of 2022. The increase in net charge-offs from
the second quarter of 2022 was due to an increase in charge-offs in
the Company’s other consumer portfolio, which is in a run-off
status. Net charge-offs for the portfolios in a run-off status
represented 68% of total net charge-offs.
- Nonperforming assets to total
assets were 0.17% at June 30, 2023, compared to 0.16% at March 31,
2023 and 0.22% at June 30, 2022.
- Provision expense for the three
months ended June 30, 2023 was $3.6 million, compared to $3.9
million for the first quarter of 2023 and $4.4 million for the
second quarter of 2022.
- The allowance for loan losses was
$100.4 million, or 1.20% of total loans, at June 30, 2023, compared
to 1.21% of total loans at March 31, 2023 and 1.20% of total loans
at June 30, 2022. The reserve for unfunded loan commitments
decreased to $4.4 million at June 30, 2023 compared to the prior
quarter-end at $4.5 million and to $5.1 million at June 30,
2022.
Noninterest Income
- Total noninterest income, excluding
securities losses, was $36.7 million for the three months ended
June 30, 2023, up $0.3 million from the first quarter and down $5.6
million from the prior year’s second quarter.
- Card services income increased $0.3
million from the prior quarter and decreased $4.6 million from the
second quarter of 2022 primarily driven by the impact on debit
interchange revenues from the statutory price cap provisions of the
Durbin Amendment to the Dodd-Frank Act which the Company became
subject to in the third quarter of 2022.
- Retirement plan administration fees
were up $0.3 million from the prior quarter and were $0.9 million
lower than the second quarter of 2022 driven by a decrease in
activity-based fees which were primarily statutory plan document
restatements.
- In the second quarter of 2023, the
Company incurred a $4.5 million ($0.08 per diluted share)
securities loss on the sale of two subordinated debt securities
held in the AFS portfolio. In the first quarter of 2023, the
Company recorded a $5.0 million ($0.09 per diluted share)
securities loss related to the write-off of a subordinated debt
security of a failed bank.
Noninterest Expense
- Total noninterest expense,
excluding $1.2 million of acquisition expenses in the second
quarter of 2023 and $0.6 million in the first quarter of 2023,
decreased 1.4% compared to the previous quarter and increased 2.0%
from the second quarter of 2022.
- Salaries and benefits decreased
2.7% from the prior quarter driven by seasonally higher payroll
taxes and higher stock-based compensation expenses in the first
quarter along with a lower level of incentive compensation in the
second quarter. These decreases were partially offset by a full
quarter of merit pay increases and higher health and welfare
benefits.
- Technology and data services
expenses increased over the prior quarter and from the second
quarter of 2022 due to continued investment in digital platform
solutions.
- Occupancy costs decreased from the
prior quarter due to lower seasonal maintenance, equipment costs
and utilities and increased from the second quarter of 2022 driven
by higher utilities, rent and seasonal maintenance costs.
- FDIC assessment expense was
comparable to the prior quarter and increased $0.5 million ($0.01
per diluted share) from the second quarter of 2022 driven by the
statutory increase in the FDIC assessment rate.
Income Taxes
- The effective tax rate was 22.4%
for the second quarter of 2023, compared to 22.2% for the first
quarter of 2023 and 22.5% for the second quarter of 2022.
Capital
- Capital ratios are strong with
tangible common equity to tangible assets1 at 7.95%. Tangible book
value per share2 was $21.55 at June 30, 2023, $21.52 at March 31,
2023 and $20.99 at June 30, 2022.
- Stockholders’ equity increased
$36.9 million from December 31, 2022 driven by net income
generation of $63.7 million, partially offset by dividends declared
of $25.7 million and the repurchase of common stock of $2.8
million.
- June 30, 2023, CET1 capital ratio
of 12.29%, leverage ratio of 10.51% and total risk-based capital
ratio of 15.50%.
Stock Repurchase
- The Company purchased 87,000 shares
of its common stock in the second quarter of 2023 at an average
price of $31.94 per share under its previously announced share
repurchase program. 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. As of June 30, 2023, there were
1,513,000 shares available for repurchase under this plan
authorized on December 20, 2021 and set to expire on December 31,
2023.
Salisbury Bancorp, Inc.
Merger
- On July 10, 2023, NBT announced it
has received the requisite regulatory approvals and waivers from
the Office of the Comptroller of the Currency, the Connecticut
State Banking Department and the Federal Reserve Bank of New York
necessary to complete its acquisition of Salisbury. NBT and
Salisbury anticipate closing the transaction on August 11, 2023,
subject to the satisfaction of customary closing conditions. A
weekend systems conversion will follow with locations of Salisbury
Bank opening as NBT Bank offices on August 14, 2023. Salisbury is a
Connecticut-chartered commercial bank with 13 banking offices in
northwestern Connecticut, the Hudson Valley region of New York, and
southwestern Massachusetts. Salisbury had assets of $1.56 billion,
deposits of $1.36 billion and net loans of $1.24 billion as of June
30, 2023.
Other Events
- On July 1, 2023, the Company’s subsidiary national benefits
administration firm, EPIC Retirement Plan Services (“EPIC RPS”),
completed an asset purchase of Retirement Direct, LLC, based near
Charlotte, NC. Retirement Direct served more than 500 qualified and
nonqualified retirement plans and had over $2 billion in client
assets under management. EPIC RPS has a client base that spans all
50 states and now supports over 5,000 retirement plans with more
than 300,000 plan participants.
Conference Call and Webcast
The Company will host a conference call at 8:30
a.m. (Eastern) Tuesday, August 1, 2023, to review second 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 $11.89 billion
at June 30, 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 140 banking locations in New
York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine
and Connecticut. EPIC Retirement Plan Services, based in Rochester,
NY, is a national benefits administration firm. NBT Insurance
Agency, LLC, based in Norwich, NY, is a full-service insurance
agency. More information about NBT and its divisions is available
online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and
www.nbtinsurance.com.
Forward-Looking Statements
This press release contains forward-looking
statements, as defined in the Private Securities Litigation Reform
Act of 1995. These statements may be identified by the use of
phrases such as “anticipate,” “believe,” “expect,” “forecasts,”
“projects,” “will,” “can,” “would,” “should,” “could,” “may,” or
other similar terms. There are a number of factors, many of which
are beyond the Company’s control, that could cause actual results
to differ materially from those contemplated by the forward-looking
statements. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking
statements include, among others, the following possibilities: (1)
local, regional, national and international economic conditions,
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 businesses of NBT and Salisbury may not be
combined successfully; (14) the possibility that NBT and Salisbury
may be unable to achieve expected synergies and operating
efficiencies in the merger within the expected timeframes or at all
or to successfully integrate Salisbury’s operations and those of
NBT; (15) the ability to increase market share and control
expenses; (16) changes in the competitive environment among
financial holding companies; (17) 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; (18) 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;
(19) changes in the Company’s organization, compensation and
benefit plans; (20) 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; (21) greater than expected
costs or difficulties related to the integration of new products
and lines of business; and (22) 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.
NBT Bancorp Inc. and Subsidiaries |
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|
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|
|
Selected Financial Data |
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|
|
|
|
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Profitability: |
|
|
|
|
|
Diluted earnings per share |
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
$ |
0.90 |
|
$ |
0.88 |
|
Weighted average diluted common shares outstanding |
|
43,126,498 |
|
|
43,125,986 |
|
|
43,144,666 |
|
|
43,110,932 |
|
|
43,092,851 |
|
Return on average assets3 |
|
1.02 |
% |
|
1.16 |
% |
|
1.23 |
% |
|
1.33 |
% |
|
1.28 |
% |
Return on average equity3 |
|
9.91 |
% |
|
11.47 |
% |
|
12.30 |
% |
|
12.87 |
% |
|
12.73 |
% |
Return on average tangible common equity1 3 |
|
13.13 |
% |
|
15.31 |
% |
|
16.54 |
% |
|
17.12 |
% |
|
17.00 |
% |
Net interest margin1 3 |
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
|
3.51 |
% |
|
3.21 |
% |
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
Profitability: |
|
|
|
|
|
Diluted earnings per share |
$ |
1.48 |
|
$ |
1.78 |
|
|
|
|
Weighted average diluted common shares outstanding |
|
43,129,259 |
|
|
43,238,248 |
|
|
|
|
Return on average assets |
|
1.09 |
% |
|
1.30 |
% |
|
|
|
Return on average equity |
|
10.68 |
% |
|
12.76 |
% |
|
|
|
Return on average tangible common equity1 |
|
14.20 |
% |
|
16.93 |
% |
|
|
|
Net interest margin1 |
|
3.41 |
% |
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Balance sheet data: |
|
|
|
|
|
Short-term interest-bearing accounts |
$ |
31,878 |
|
$ |
68,045 |
|
$ |
30,862 |
|
$ |
97,303 |
|
$ |
328,593 |
|
Securities available for sale |
|
1,453,926 |
|
|
1,512,008 |
|
|
1,527,225 |
|
|
1,556,501 |
|
|
1,619,356 |
|
Securities held to maturity |
|
912,876 |
|
|
906,824 |
|
|
919,517 |
|
|
929,541 |
|
|
936,512 |
|
Net loans |
|
8,257,724 |
|
|
8,164,328 |
|
|
8,049,347 |
|
|
7,807,984 |
|
|
7,684,081 |
|
Total assets |
|
11,890,497 |
|
|
11,839,730 |
|
|
11,739,296 |
|
|
11,640,742 |
|
|
11,720,459 |
|
Total deposits |
|
9,529,919 |
|
|
9,681,205 |
|
|
9,495,933 |
|
|
9,918,751 |
|
|
10,028,708 |
|
Total borrowings |
|
880,518 |
|
|
703,248 |
|
|
787,950 |
|
|
277,889 |
|
|
265,796 |
|
Total liabilities |
|
10,680,004 |
|
|
10,628,071 |
|
|
10,565,742 |
|
|
10,484,196 |
|
|
10,531,903 |
|
Stockholders' equity |
|
1,210,493 |
|
|
1,211,659 |
|
|
1,173,554 |
|
|
1,156,546 |
|
|
1,188,556 |
|
|
|
|
|
|
|
Capital: |
|
|
|
|
|
Equity to assets |
|
10.18 |
% |
|
10.23 |
% |
|
10.00 |
% |
|
9.94 |
% |
|
10.14 |
% |
Tangible equity ratio1 |
|
7.95 |
% |
|
7.99 |
% |
|
7.73 |
% |
|
7.64 |
% |
|
7.87 |
% |
Book value per share |
$ |
28.26 |
|
$ |
28.24 |
|
$ |
27.38 |
|
$ |
27.00 |
|
$ |
27.75 |
|
Tangible book value per share2 |
$ |
21.55 |
|
$ |
21.52 |
|
$ |
20.65 |
|
$ |
20.25 |
|
$ |
20.99 |
|
Leverage ratio |
|
10.51 |
% |
|
10.43 |
% |
|
10.32 |
% |
|
10.21 |
% |
|
9.77 |
% |
Common equity tier 1 capital ratio |
|
12.29 |
% |
|
12.28 |
% |
|
12.12 |
% |
|
12.17 |
% |
|
12.14 |
% |
Tier 1 capital ratio |
|
13.35 |
% |
|
13.34 |
% |
|
13.19 |
% |
|
13.27 |
% |
|
13.27 |
% |
Total risk-based capital ratio |
|
15.50 |
% |
|
15.53 |
% |
|
15.38 |
% |
|
15.50 |
% |
|
15.50 |
% |
Common stock price (end of period) |
$ |
31.85 |
|
$ |
33.71 |
|
$ |
43.42 |
|
$ |
37.95 |
|
$ |
37.59 |
|
|
|
|
|
|
|
NBT Bancorp Inc. and Subsidiaries |
|
|
|
|
|
Asset Quality and Consolidated Loan Balances |
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Asset quality: |
|
|
|
|
|
Nonaccrual loans |
$ |
16,931 |
|
$ |
16,284 |
|
$ |
17,233 |
|
$ |
19,098 |
|
$ |
23,673 |
|
90 days past due and still accruing |
|
2,755 |
|
|
2,328 |
|
|
3,823 |
|
|
2,732 |
|
|
2,096 |
|
Total nonperforming loans |
|
19,686 |
|
|
18,612 |
|
|
21,056 |
|
|
21,830 |
|
|
25,769 |
|
Other real estate owned |
|
179 |
|
|
105 |
|
|
105 |
|
|
- |
|
|
- |
|
Total nonperforming assets |
|
19,865 |
|
|
18,717 |
|
|
21,161 |
|
|
21,830 |
|
|
25,769 |
|
Allowance for loan losses |
|
100,400 |
|
|
100,250 |
|
|
100,800 |
|
|
96,800 |
|
|
93,600 |
|
|
|
|
|
|
|
Asset quality ratios: |
|
|
|
|
|
Allowance for loan losses to total loans |
|
1.20 |
% |
|
1.21 |
% |
|
1.24 |
% |
|
1.22 |
% |
|
1.20 |
% |
Total nonperforming loans to total loans |
|
0.24 |
% |
|
0.23 |
% |
|
0.26 |
% |
|
0.28 |
% |
|
0.33 |
% |
Total nonperforming assets to total assets |
|
0.17 |
% |
|
0.16 |
% |
|
0.18 |
% |
|
0.19 |
% |
|
0.22 |
% |
Allowance for loan losses to total nonperforming loans |
|
510.01 |
% |
|
538.63 |
% |
|
478.72 |
% |
|
443.43 |
% |
|
363.23 |
% |
Past due loans to total loans4 |
|
0.45 |
% |
|
0.30 |
% |
|
0.33 |
% |
|
0.30 |
% |
|
0.40 |
% |
Net charge-offs to average loans3 |
|
0.17 |
% |
|
0.19 |
% |
|
0.18 |
% |
|
0.07 |
% |
|
0.04 |
% |
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Loan net charge-offs by line of business: |
|
|
|
|
|
Commercial & industrial |
$ |
51 |
|
$ |
(294 |
) |
$ |
(45 |
) |
$ |
(1,045 |
) |
$ |
(298 |
) |
Commercial real estate |
|
41 |
|
|
42 |
|
|
8 |
|
|
324 |
|
|
(246 |
) |
Residential real estate and home equity |
|
(43 |
) |
|
80 |
|
|
(79 |
) |
|
(56 |
) |
|
(210 |
) |
Indirect auto |
|
273 |
|
|
423 |
|
|
445 |
|
|
222 |
|
|
163 |
|
Residential solar |
|
581 |
|
|
656 |
|
|
596 |
|
|
43 |
|
|
153 |
|
Other consumer |
|
2,553 |
|
|
2,904 |
|
|
2,752 |
|
|
1,796 |
|
|
1,228 |
|
Total loan net charge-offs |
$ |
3,456 |
|
$ |
3,811 |
|
$ |
3,677 |
|
$ |
1,284 |
|
$ |
790 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Allowance for loan losses as a percentage of loans by
segment: |
|
|
|
|
Commercial & industrial |
|
0.86% |
|
|
0.85% |
|
|
0.82% |
|
|
0.80% |
|
|
0.74% |
|
Commercial real estate |
|
0.93% |
|
|
0.93% |
|
|
0.91% |
|
|
0.88% |
|
|
0.89% |
|
Residential real estate |
|
0.73% |
|
|
0.73% |
|
|
0.72% |
|
|
0.74% |
|
|
0.79% |
|
Auto |
|
0.80% |
|
|
0.77% |
|
|
0.81% |
|
|
0.78% |
|
|
0.79% |
|
Residential solar |
|
3.09% |
|
|
3.04% |
|
|
3.21% |
|
|
3.08% |
|
|
3.00% |
|
Other consumer |
|
5.98% |
|
|
6.19% |
|
|
6.27% |
|
|
6.67% |
|
|
6.19% |
|
Total |
|
1.20% |
|
|
1.21% |
|
|
1.24% |
|
|
1.22% |
|
|
1.20% |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Loans by line of business: |
|
|
|
|
|
Commercial & industrial |
$ |
1,318,340 |
|
$ |
1,277,446 |
|
$ |
1,265,082 |
|
$ |
1,258,871 |
|
$ |
1,298,072 |
|
Commercial real estate |
|
2,884,264 |
|
|
2,845,631 |
|
|
2,807,941 |
|
|
2,724,728 |
|
|
2,670,633 |
|
Paycheck protection program |
|
753 |
|
|
845 |
|
|
949 |
|
|
3,328 |
|
|
17,286 |
|
Residential real estate |
|
1,666,204 |
|
|
1,651,918 |
|
|
1,649,870 |
|
|
1,626,528 |
|
|
1,606,188 |
|
Indirect auto |
|
1,048,739 |
|
|
1,031,315 |
|
|
989,587 |
|
|
952,757 |
|
|
936,516 |
|
Residential solar |
|
926,365 |
|
|
920,084 |
|
|
856,798 |
|
|
728,898 |
|
|
599,565 |
|
Home equity |
|
310,897 |
|
|
308,219 |
|
|
314,124 |
|
|
313,557 |
|
|
313,395 |
|
Other consumer |
|
202,562 |
|
|
229,120 |
|
|
265,796 |
|
|
296,117 |
|
|
336,026 |
|
Total loans |
$ |
8,358,124 |
|
$ |
8,264,578 |
|
$ |
8,150,147 |
|
$ |
7,904,784 |
|
$ |
7,777,681 |
|
|
|
|
|
|
|
PPP income recognized |
$ |
5 |
|
$ |
9 |
|
$ |
71 |
|
$ |
320 |
|
$ |
1,301 |
|
PPP unamortized fees |
$ |
35 |
|
$ |
38 |
|
$ |
45 |
|
$ |
108 |
|
$ |
414 |
|
|
|
|
|
|
|
NBT Bancorp Inc. and Subsidiaries |
Consolidated Balance Sheets |
(unaudited, dollars in thousands) |
|
|
|
|
June 30, |
December 31, |
Assets |
2023 |
2022 |
Cash and due from banks |
$ |
170,010 |
|
$ |
166,488 |
Short-term interest-bearing accounts |
|
31,878 |
|
|
30,862 |
Equity securities, at fair value |
|
33,893 |
|
|
30,784 |
Securities available for sale, at fair value |
|
1,453,926 |
|
|
1,527,225 |
Securities held to maturity (fair value $808,641 and $812,647,
respectively) |
|
912,876 |
|
|
919,517 |
Federal Reserve and Federal Home Loan Bank stock |
|
53,076 |
|
|
44,713 |
Loans held for sale |
|
1,866 |
|
|
562 |
Loans |
|
8,358,124 |
|
|
8,150,147 |
Less allowance for loan losses |
|
100,400 |
|
|
100,800 |
Net loans |
$ |
8,257,724 |
|
$ |
8,049,347 |
Premises and equipment, net |
|
66,799 |
|
|
69,047 |
Goodwill |
|
281,204 |
|
|
281,204 |
Intangible assets, net |
|
6,497 |
|
|
7,341 |
Bank owned life insurance |
|
233,400 |
|
|
232,409 |
Other assets |
|
387,348 |
|
|
379,797 |
Total assets |
$ |
11,890,497 |
|
$ |
11,739,296 |
|
|
|
Liabilities and stockholders' equity |
|
|
Demand (noninterest bearing) |
$ |
3,326,685 |
|
$ |
3,617,324 |
Savings, NOW and money market |
|
5,224,560 |
|
|
5,444,837 |
Time |
|
978,674 |
|
|
433,772 |
Total deposits |
$ |
9,529,919 |
|
$ |
9,495,933 |
Short-term borrowings |
|
652,413 |
|
|
585,012 |
Long-term debt |
|
29,764 |
|
|
4,815 |
Subordinated debt, net |
|
97,145 |
|
|
96,927 |
Junior subordinated debt |
|
101,196 |
|
|
101,196 |
Other liabilities |
|
269,567 |
|
|
281,859 |
Total liabilities |
$ |
10,680,004 |
|
$ |
10,565,742 |
|
|
|
Total stockholders' equity |
$ |
1,210,493 |
|
$ |
1,173,554 |
|
|
|
Total liabilities and stockholders' equity |
$ |
11,890,497 |
|
$ |
11,739,296 |
|
|
|
NBT Bancorp Inc. and Subsidiaries |
Consolidated Statements of Income |
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
June 30, |
June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Interest, fee and dividend income |
|
|
|
|
Interest and fees on loans |
$ |
106,935 |
|
$ |
78,539 |
|
$ |
207,834 |
|
$ |
151,882 |
|
Securities available for sale |
|
7,493 |
|
|
7,317 |
|
|
15,109 |
|
|
14,157 |
|
Securities held to maturity |
|
4,991 |
|
|
4,185 |
|
|
10,026 |
|
|
7,678 |
|
Other |
|
1,170 |
|
|
1,442 |
|
|
1,812 |
|
|
1,967 |
|
Total interest, fee and dividend income |
$ |
120,589 |
|
$ |
91,483 |
|
$ |
234,781 |
|
$ |
175,684 |
|
Interest expense |
|
|
|
|
Deposits |
$ |
19,986 |
|
$ |
1,756 |
|
$ |
31,130 |
|
$ |
3,598 |
|
Short-term borrowings |
|
8,126 |
|
|
13 |
|
|
13,045 |
|
|
29 |
|
Long-term debt |
|
290 |
|
|
33 |
|
|
337 |
|
|
120 |
|
Subordinated debt |
|
1,335 |
|
|
1,359 |
|
|
2,669 |
|
|
2,718 |
|
Junior subordinated debt |
|
1,767 |
|
|
737 |
|
|
3,449 |
|
|
1,286 |
|
Total interest expense |
$ |
31,504 |
|
$ |
3,898 |
|
$ |
50,630 |
|
$ |
7,751 |
|
Net interest income |
$ |
89,085 |
|
$ |
87,585 |
|
$ |
184,151 |
|
$ |
167,933 |
|
Provision for loan losses |
|
3,606 |
|
|
4,390 |
|
|
7,515 |
|
|
4,986 |
|
Net interest income after provision for loan losses |
$ |
85,479 |
|
$ |
83,195 |
|
$ |
176,636 |
|
$ |
162,947 |
|
Noninterest income |
|
|
|
|
Service charges on deposit accounts |
$ |
3,733 |
|
$ |
3,763 |
|
$ |
7,281 |
|
$ |
7,451 |
|
Card services income |
|
5,121 |
|
|
9,751 |
|
|
9,966 |
|
|
18,446 |
|
Retirement plan administration fees |
|
11,735 |
|
|
12,676 |
|
|
23,197 |
|
|
25,955 |
|
Wealth management |
|
8,227 |
|
|
8,252 |
|
|
16,314 |
|
|
16,892 |
|
Insurance services |
|
3,716 |
|
|
3,578 |
|
|
7,647 |
|
|
7,366 |
|
Bank owned life insurance income |
|
1,528 |
|
|
1,411 |
|
|
3,406 |
|
|
3,065 |
|
Net securities (losses) |
|
(4,641 |
) |
|
(587 |
) |
|
(9,639 |
) |
|
(766 |
) |
Other |
|
2,626 |
|
|
2,812 |
|
|
5,282 |
|
|
5,906 |
|
Total noninterest income |
$ |
32,045 |
|
$ |
41,656 |
|
$ |
63,454 |
|
$ |
84,315 |
|
Noninterest expense |
|
|
|
|
Salaries and employee benefits |
$ |
46,834 |
|
$ |
46,716 |
|
$ |
94,989 |
|
$ |
92,224 |
|
Technology and data services |
|
9,305 |
|
|
8,945 |
|
|
18,312 |
|
|
17,492 |
|
Occupancy |
|
6,923 |
|
|
6,487 |
|
|
14,143 |
|
|
13,280 |
|
Professional fees and outside services |
|
4,159 |
|
|
3,906 |
|
|
8,337 |
|
|
8,182 |
|
Office supplies and postage |
|
1,676 |
|
|
1,548 |
|
|
3,304 |
|
|
2,972 |
|
FDIC assessment |
|
1,344 |
|
|
810 |
|
|
2,740 |
|
|
1,612 |
|
Advertising |
|
525 |
|
|
730 |
|
|
1,174 |
|
|
1,384 |
|
Amortization of intangible assets |
|
458 |
|
|
545 |
|
|
994 |
|
|
1,181 |
|
Loan collection and other real estate owned, net |
|
691 |
|
|
757 |
|
|
1,546 |
|
|
1,141 |
|
Acquisition expenses |
|
1,189 |
|
|
- |
|
|
1,807 |
|
|
- |
|
Other |
|
5,690 |
|
|
5,675 |
|
|
10,770 |
|
|
8,794 |
|
Total noninterest expense |
$ |
78,794 |
|
$ |
76,119 |
|
$ |
158,116 |
|
$ |
148,262 |
|
Income before income tax expense |
$ |
38,730 |
|
$ |
48,732 |
|
$ |
81,974 |
|
$ |
99,000 |
|
Income tax expense |
|
8,658 |
|
|
10,957 |
|
|
18,244 |
|
|
22,099 |
|
Net income |
$ |
30,072 |
|
$ |
37,775 |
|
$ |
63,730 |
|
$ |
76,901 |
|
Earnings Per Share |
|
|
|
|
Basic |
$ |
0.70 |
|
$ |
0.88 |
|
$ |
1.49 |
|
$ |
1.79 |
|
Diluted |
$ |
0.70 |
|
$ |
0.88 |
|
$ |
1.48 |
|
$ |
1.78 |
|
|
|
|
|
|
NBT Bancorp Inc. and Subsidiaries |
|
|
|
|
|
Quarterly Consolidated Statements of Income |
|
|
|
|
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
Interest, fee and dividend income |
|
|
|
|
|
Interest and fees on loans |
$ |
106,935 |
|
$ |
100,899 |
|
$ |
95,620 |
|
$ |
85,266 |
|
$ |
78,539 |
|
Securities available for sale |
|
7,493 |
|
|
7,616 |
|
|
7,831 |
|
|
7,665 |
|
|
7,317 |
|
Securities held to maturity |
|
4,991 |
|
|
5,035 |
|
|
5,050 |
|
|
4,854 |
|
|
4,185 |
|
Other |
|
1,170 |
|
|
642 |
|
|
671 |
|
|
1,429 |
|
|
1,442 |
|
Total interest, fee and dividend income |
$ |
120,589 |
|
$ |
114,192 |
|
$ |
109,172 |
|
$ |
99,214 |
|
$ |
91,483 |
|
Interest expense |
|
|
|
|
|
Deposits |
$ |
19,986 |
|
$ |
11,144 |
|
$ |
4,092 |
|
$ |
2,233 |
|
$ |
1,756 |
|
Short-term borrowings |
|
8,126 |
|
|
4,919 |
|
|
2,510 |
|
|
84 |
|
|
13 |
|
Long-term debt |
|
290 |
|
|
47 |
|
|
21 |
|
|
20 |
|
|
33 |
|
Subordinated debt |
|
1,335 |
|
|
1,334 |
|
|
1,346 |
|
|
1,360 |
|
|
1,359 |
|
Junior subordinated debt |
|
1,767 |
|
|
1,682 |
|
|
1,424 |
|
|
1,039 |
|
|
737 |
|
Total interest expense |
$ |
31,504 |
|
$ |
19,126 |
|
$ |
9,393 |
|
$ |
4,736 |
|
$ |
3,898 |
|
Net interest income |
$ |
89,085 |
|
$ |
95,066 |
|
$ |
99,779 |
|
$ |
94,478 |
|
$ |
87,585 |
|
Provision for loan losses |
|
3,606 |
|
|
3,909 |
|
|
7,677 |
|
|
4,484 |
|
|
4,390 |
|
Net interest income after provision for loan losses |
$ |
85,479 |
|
$ |
91,157 |
|
$ |
92,102 |
|
$ |
89,994 |
|
$ |
83,195 |
|
Noninterest income |
|
|
|
|
|
Service charges on deposit accounts |
$ |
3,733 |
|
$ |
3,548 |
|
$ |
3,598 |
|
$ |
3,581 |
|
$ |
3,763 |
|
Card services income |
|
5,121 |
|
|
4,845 |
|
|
4,958 |
|
|
5,654 |
|
|
9,751 |
|
Retirement plan administration fees |
|
11,735 |
|
|
11,462 |
|
|
10,661 |
|
|
11,496 |
|
|
12,676 |
|
Wealth management |
|
8,227 |
|
|
8,087 |
|
|
8,017 |
|
|
8,402 |
|
|
8,252 |
|
Insurance services |
|
3,716 |
|
|
3,931 |
|
|
3,438 |
|
|
3,892 |
|
|
3,578 |
|
Bank owned life insurance income |
|
1,528 |
|
|
1,878 |
|
|
1,419 |
|
|
1,560 |
|
|
1,411 |
|
Net securities (losses) |
|
(4,641 |
) |
|
(4,998 |
) |
|
(217 |
) |
|
(148 |
) |
|
(587 |
) |
Other |
|
2,626 |
|
|
2,656 |
|
|
2,217 |
|
|
2,735 |
|
|
2,812 |
|
Total noninterest income |
$ |
32,045 |
|
$ |
31,409 |
|
$ |
34,091 |
|
$ |
37,172 |
|
$ |
41,656 |
|
Noninterest expense |
|
|
|
|
|
Salaries and employee benefits |
$ |
46,834 |
|
$ |
48,155 |
|
$ |
47,235 |
|
$ |
48,371 |
|
$ |
46,716 |
|
Technology and data services |
|
9,305 |
|
|
9,007 |
|
|
9,124 |
|
|
9,096 |
|
|
8,945 |
|
Occupancy |
|
6,923 |
|
|
7,220 |
|
|
6,521 |
|
|
6,481 |
|
|
6,487 |
|
Professional fees and outside services |
|
4,159 |
|
|
4,178 |
|
|
4,811 |
|
|
3,817 |
|
|
3,906 |
|
Office supplies and postage |
|
1,676 |
|
|
1,628 |
|
|
1,699 |
|
|
1,469 |
|
|
1,548 |
|
FDIC assessment |
|
1,344 |
|
|
1,396 |
|
|
798 |
|
|
787 |
|
|
810 |
|
Advertising |
|
525 |
|
|
649 |
|
|
879 |
|
|
559 |
|
|
730 |
|
Amortization of intangible assets |
|
458 |
|
|
536 |
|
|
538 |
|
|
544 |
|
|
545 |
|
Loan collection and other real estate owned, net |
|
691 |
|
|
855 |
|
|
957 |
|
|
549 |
|
|
757 |
|
Acquisition expenses |
|
1,189 |
|
|
618 |
|
|
967 |
|
|
- |
|
|
- |
|
Other |
|
5,690 |
|
|
5,080 |
|
|
5,980 |
|
|
5,021 |
|
|
5,675 |
|
Total noninterest expense |
$ |
78,794 |
|
$ |
79,322 |
|
$ |
79,509 |
|
$ |
76,694 |
|
$ |
76,119 |
|
Income before income tax expense |
$ |
38,730 |
|
$ |
43,244 |
|
$ |
46,684 |
|
$ |
50,472 |
|
$ |
48,732 |
|
Income tax expense |
|
8,658 |
|
|
9,586 |
|
|
10,563 |
|
|
11,499 |
|
|
10,957 |
|
Net income |
$ |
30,072 |
|
$ |
33,658 |
|
$ |
36,121 |
|
$ |
38,973 |
|
$ |
37,775 |
|
Earnings Per Share |
|
|
|
|
|
Basic |
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
$ |
0.91 |
|
$ |
0.88 |
|
Diluted |
$ |
0.70 |
|
$ |
0.78 |
|
$ |
0.84 |
|
$ |
0.90 |
|
$ |
0.88 |
|
|
|
|
|
|
|
NBT Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance |
Yield / Rates |
Average Balance |
Yield / Rates |
Average Balance |
Yield / Rates |
Average Balance |
Yield / Rates |
Average Balance |
Yield / Rates |
|
|
Q2 - 2023 |
Q1 - 2023 |
Q4 - 2022 |
Q3 - 2022 |
Q2 - 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Short-term interest-bearing accounts |
|
$ |
28,473 |
3.62 |
% |
$ |
34,215 |
2.26 |
% |
$ |
39,573 |
3.31 |
% |
$ |
191,463 |
2.51 |
% |
$ |
553,548 |
0.82 |
% |
Securities taxable1 |
|
|
2,394,027 |
1.90 |
% |
|
2,442,732 |
1.92 |
% |
|
2,480,959 |
1.88 |
% |
|
2,491,315 |
1.83 |
% |
|
2,439,960 |
1.74 |
% |
Securities tax-exempt 1 5 |
|
|
201,499 |
2.83 |
% |
|
202,321 |
2.81 |
% |
|
208,238 |
2.68 |
% |
|
211,306 |
2.47 |
% |
|
256,799 |
1.83 |
% |
FRB and FHLB stock |
|
|
51,454 |
7.12 |
% |
|
41,144 |
4.45 |
% |
|
32,903 |
4.11 |
% |
|
25,182 |
3.47 |
% |
|
24,983 |
5.03 |
% |
Loans1 6 |
|
|
8,307,894 |
5.17 |
% |
|
8,189,520 |
5.00 |
% |
|
8,039,442 |
4.72 |
% |
|
7,808,025 |
4.34 |
% |
|
7,707,730 |
4.09 |
% |
Total interest-earning assets |
|
$ |
10,983,347 |
4.42 |
% |
$ |
10,909,932 |
4.26 |
% |
$ |
10,801,115 |
4.02 |
% |
$ |
10,727,291 |
3.68 |
% |
$ |
10,983,020 |
3.35 |
% |
Other assets |
|
|
835,424 |
|
|
836,879 |
|
|
855,410 |
|
|
887,378 |
|
|
883,498 |
|
Total assets |
|
$ |
11,818,771 |
|
$ |
11,746,811 |
|
$ |
11,656,525 |
|
$ |
11,614,669 |
|
$ |
11,866,518 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
Money market deposit accounts |
|
$ |
2,113,965 |
2.30 |
% |
$ |
2,081,210 |
1.22 |
% |
$ |
2,169,192 |
0.39 |
% |
$ |
2,332,341 |
0.15 |
% |
$ |
2,577,367 |
0.14 |
% |
NOW deposit accounts |
|
|
1,463,953 |
0.38 |
% |
|
1,598,834 |
0.36 |
% |
|
1,604,096 |
0.33 |
% |
|
1,548,115 |
0.21 |
% |
|
1,580,132 |
0.07 |
% |
Savings deposits |
|
|
1,708,874 |
0.03 |
% |
|
1,781,465 |
0.03 |
% |
|
1,823,056 |
0.03 |
% |
|
1,854,122 |
0.03 |
% |
|
1,845,128 |
0.03 |
% |
Time deposits |
|
|
856,305 |
2.97 |
% |
|
639,645 |
2.10 |
% |
|
432,110 |
0.41 |
% |
|
455,168 |
0.35 |
% |
|
478,531 |
0.37 |
% |
Total interest-bearing deposits |
|
$ |
6,143,097 |
1.30 |
% |
$ |
6,101,154 |
0.74 |
% |
$ |
6,028,454 |
0.27 |
% |
$ |
6,189,746 |
0.14 |
% |
$ |
6,481,158 |
0.11 |
% |
Federal funds purchased |
|
|
48,407 |
5.35 |
% |
|
44,334 |
4.92 |
% |
|
56,576 |
4.03 |
% |
|
1,522 |
3.39 |
% |
|
- |
- |
|
Repurchase agreements |
|
|
55,627 |
1.08 |
% |
|
71,340 |
0.08 |
% |
|
76,334 |
0.11 |
% |
|
69,048 |
0.10 |
% |
|
60,061 |
0.09 |
% |
Short-term borrowings |
|
|
557,818 |
5.27 |
% |
|
357,200 |
4.96 |
% |
|
177,533 |
4.28 |
% |
|
6,440 |
3.33 |
% |
|
- |
- |
|
Long-term debt |
|
|
29,773 |
3.91 |
% |
|
7,299 |
2.61 |
% |
|
3,817 |
2.18 |
% |
|
3,331 |
2.38 |
% |
|
5,336 |
2.48 |
% |
Subordinated debt, net |
|
|
97,081 |
5.52 |
% |
|
96,966 |
5.58 |
% |
|
97,839 |
5.46 |
% |
|
98,748 |
5.46 |
% |
|
98,642 |
5.53 |
% |
Junior subordinated debt |
|
|
101,196 |
7.00 |
% |
|
101,196 |
6.74 |
% |
|
101,196 |
5.58 |
% |
|
101,196 |
4.07 |
% |
|
101,196 |
2.92 |
% |
Total interest-bearing liabilities |
|
$ |
7,032,999 |
1.80 |
% |
$ |
6,779,489 |
1.14 |
% |
$ |
6,541,749 |
0.57 |
% |
$ |
6,470,031 |
0.29 |
% |
$ |
6,746,393 |
0.23 |
% |
Demand deposits |
|
|
3,316,955 |
|
|
3,502,489 |
|
|
3,658,965 |
|
|
3,708,131 |
|
|
3,711,049 |
|
Other liabilities |
|
|
251,511 |
|
|
274,517 |
|
|
290,895 |
|
|
234,851 |
|
|
218,491 |
|
Stockholders' equity |
|
|
1,217,306 |
|
|
1,190,316 |
|
|
1,164,916 |
|
|
1,201,656 |
|
|
1,190,585 |
|
Total liabilities and stockholders' equity |
|
$ |
11,818,771 |
|
$ |
11,746,811 |
|
$ |
11,656,525 |
|
$ |
11,614,669 |
|
$ |
11,866,518 |
|
Interest rate spread |
|
|
2.62 |
% |
|
3.12 |
% |
|
3.45 |
% |
|
3.39 |
% |
|
3.12 |
% |
Net interest margin (FTE)1 |
|
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
|
3.51 |
% |
|
3.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
|
Short-term interest-bearing accounts |
|
$ |
31,328 |
$ |
447 |
2.88 |
% |
$ |
770,727 |
$ |
1,533 |
0.40 |
% |
Securities taxable1 |
|
|
2,418,245 |
|
22,902 |
1.91 |
% |
|
2,362,699 |
|
19,981 |
1.71 |
% |
Securities tax-exempt1 5 |
|
|
201,908 |
|
2,826 |
2.82 |
% |
|
257,651 |
|
2,347 |
1.84 |
% |
FRB and FHLB stock |
|
|
46,327 |
|
1,365 |
5.94 |
% |
|
25,004 |
|
434 |
3.50 |
% |
Loans1 6 |
|
|
8,249,034 |
|
208,038 |
5.09 |
% |
|
7,619,691 |
|
151,964 |
4.02 |
% |
Total interest-earning assets |
|
$ |
10,946,842 |
$ |
235,578 |
4.34 |
% |
$ |
11,035,772 |
$ |
176,259 |
3.22 |
% |
Other assets |
|
|
836,148 |
|
|
|
915,361 |
|
|
Total assets |
|
$ |
11,782,990 |
|
|
$ |
11,951,133 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
Money market deposit accounts |
|
$ |
2,097,678 |
$ |
18,368 |
1.77 |
% |
$ |
2,648,458 |
$ |
1,924 |
0.15 |
% |
NOW deposit accounts |
|
|
1,531,021 |
|
2,824 |
0.37 |
% |
|
1,581,603 |
|
460 |
0.06 |
% |
Savings deposits |
|
|
1,744,969 |
|
286 |
0.03 |
% |
|
1,819,978 |
|
293 |
0.03 |
% |
Time deposits |
|
|
748,573 |
|
9,652 |
2.60 |
% |
|
486,537 |
|
921 |
0.38 |
% |
Total interest-bearing deposits |
|
$ |
6,122,241 |
$ |
31,130 |
1.03 |
% |
$ |
6,536,576 |
$ |
3,598 |
0.11 |
% |
Federal funds purchased |
|
|
46,381 |
|
1,184 |
5.15 |
% |
|
- |
|
- |
- |
|
Repurchase agreements |
|
|
63,440 |
|
164 |
0.52 |
% |
|
66,379 |
|
29 |
0.09 |
% |
Short-term borrowings |
|
|
458,064 |
|
11,697 |
5.15 |
% |
|
- |
|
- |
- |
|
Long-term debt |
|
|
18,598 |
|
337 |
3.65 |
% |
|
9,634 |
|
120 |
2.51 |
% |
Subordinated debt, net |
|
|
97,024 |
|
2,669 |
5.55 |
% |
|
98,587 |
|
2,718 |
5.56 |
% |
Junior subordinated debt |
|
|
101,196 |
|
3,449 |
6.87 |
% |
|
101,196 |
|
1,286 |
2.56 |
% |
Total interest-bearing liabilities |
|
$ |
6,906,944 |
$ |
50,630 |
1.48 |
% |
$ |
6,812,372 |
$ |
7,751 |
0.23 |
% |
Demand deposits |
|
|
3,409,209 |
|
|
|
3,710,589 |
|
|
Other liabilities |
|
|
262,951 |
|
|
|
212,425 |
|
|
Stockholders' equity |
|
|
1,203,886 |
|
|
|
1,215,747 |
|
|
Total liabilities and stockholders' equity |
|
$ |
11,782,990 |
|
|
$ |
11,951,133 |
|
|
Net interest income (FTE)1 |
|
|
$ |
184,948 |
|
|
$ |
168,508 |
|
Interest rate spread |
|
|
|
2.86 |
% |
|
|
2.99 |
% |
Net interest margin (FTE)1 |
|
|
|
3.41 |
% |
|
|
3.08 |
% |
Taxable equivalent adjustment |
|
|
$ |
797 |
|
|
$ |
575 |
|
Net interest income |
|
|
$ |
184,151 |
|
|
$ |
167,933 |
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE adjustment |
|
2023 |
|
|
2022 |
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
Net interest income |
$ |
89,085 |
|
$ |
95,066 |
|
$ |
99,779 |
|
$ |
94,478 |
|
$ |
87,585 |
|
|
Add: FTE adjustment |
|
402 |
|
|
395 |
|
|
392 |
|
|
337 |
|
|
290 |
|
|
Net interest income (FTE) |
$ |
89,487 |
|
$ |
95,461 |
|
$ |
100,171 |
|
$ |
94,815 |
|
$ |
87,875 |
|
|
Average earning assets |
$ |
10,983,347 |
|
$ |
10,909,932 |
|
$ |
10,801,115 |
|
$ |
10,727,291 |
|
$ |
10,983,020 |
|
|
Net interest margin (FTE)3 |
|
3.27 |
% |
|
3.55 |
% |
|
3.68 |
% |
|
3.51 |
% |
|
3.21 |
% |
|
|
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
Net interest income |
$ |
184,151 |
|
$ |
167,933 |
|
|
|
|
|
Add: FTE adjustment |
|
797 |
|
|
575 |
|
|
|
|
|
Net interest income (FTE) |
$ |
184,948 |
|
$ |
168,508 |
|
|
|
|
|
Average earning assets |
$ |
10,946,842 |
|
$ |
11,035,772 |
|
|
|
|
|
Net interest margin (FTE)3 |
|
3.41 |
% |
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest income for tax-exempt securities and loans have been
adjusted to an FTE basis using the statutory Federal income tax
rate of 21%. |
|
|
|
|
|
|
|
|
Tangible equity to tangible assets |
|
2023 |
|
|
2022 |
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
Total equity |
$ |
1,210,493 |
|
$ |
1,211,659 |
|
$ |
1,173,554 |
|
$ |
1,156,546 |
|
$ |
1,188,556 |
|
|
Intangible assets |
|
287,701 |
|
|
288,159 |
|
|
288,545 |
|
|
289,083 |
|
|
289,259 |
|
|
Total assets |
$ |
11,890,497 |
|
$ |
11,839,730 |
|
$ |
11,739,296 |
|
$ |
11,640,742 |
|
$ |
11,720,459 |
|
|
Tangible equity to tangible assets |
|
7.95 |
% |
|
7.99 |
% |
|
7.73 |
% |
|
7.64 |
% |
|
7.87 |
% |
|
|
|
|
|
|
|
|
Return on average tangible common equity |
|
2023 |
|
|
2022 |
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
Net income |
$ |
30,072 |
|
$ |
33,658 |
|
$ |
36,121 |
|
$ |
38,973 |
|
$ |
37,775 |
|
|
Amortization of intangible assets (net of tax) |
|
344 |
|
|
402 |
|
|
404 |
|
|
408 |
|
|
409 |
|
|
Net income, excluding intangibles amortization |
$ |
30,416 |
|
$ |
34,060 |
|
$ |
36,525 |
|
$ |
39,381 |
|
$ |
38,184 |
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
$ |
1,217,306 |
|
$ |
1,190,316 |
|
$ |
1,164,916 |
|
$ |
1,201,656 |
|
$ |
1,190,585 |
|
|
Less: average goodwill and other intangibles |
|
287,974 |
|
|
288,354 |
|
|
288,856 |
|
|
289,296 |
|
|
289,584 |
|
|
Average tangible common equity |
$ |
929,332 |
|
$ |
901,962 |
|
$ |
876,060 |
|
$ |
912,360 |
|
$ |
901,001 |
|
|
Return on average tangible common equity3 |
|
13.13 |
% |
|
15.31 |
% |
|
16.54 |
% |
|
17.12 |
% |
|
17.00 |
% |
|
|
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
Net income |
$ |
63,730 |
|
$ |
76,901 |
|
|
|
|
|
Amortization of intangible assets (net of tax) |
|
746 |
|
|
886 |
|
|
|
|
|
Net income, excluding intangibles amortization |
$ |
64,476 |
|
$ |
77,787 |
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
$ |
1,203,886 |
|
$ |
1,215,747 |
|
|
|
|
|
Less: average goodwill and other intangibles |
|
288,163 |
|
|
289,402 |
|
|
|
|
|
Average tangible common equity |
$ |
915,723 |
|
$ |
926,345 |
|
|
|
|
|
Return on average tangible common equity3 |
|
14.20 |
% |
|
16.93 |
% |
|
|
|
|
|
|
|
|
|
|
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 CEOScott A. Kingsley, Executive
Vice President and CFONBT Bancorp Inc.52 South Broad StreetNorwich,
NY 13815607-337-6589 |
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