NBT Bancorp Inc. Announces First Quarter Net Income of $10.4 Million, or $0.23 per Diluted Common Share
Pre-provision net revenue (“PPNR”)1, excluding securities gains (losses), for the first quarter was
CEO Comments
“In the face of the rapidly changing economic conditions brought on by the COVID-19 pandemic, we have been aggressive in our response to deliver support and solutions to our customers in distress while providing for the health and safety of our employees,” said
Watt continued, “Our earnings for the first quarter were significantly impacted by the COVID-19 pandemic and the resulting increase to our provision for expected losses under CECL accounting. The quarter was marked by strong loan growth and consistent underlying operating financial performance even in the face of a 150-basis-point drop in the federal funds rate. Our strong balance sheet and capital position, disciplined approach to credit and risk management, technology investments and diversified fee business are attributes that provide NBT with resources and flexibility to navigate these difficult times. We moved forward to complete the acquisition of
First Quarter Highlights
Net Income |
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Net Interest Income / NIM |
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PPNR |
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Loans and Credit Quality |
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Capital |
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Company Response to Pandemic
The COVID-19 pandemic has significantly disrupted the global and local economy and the customers and communities served by NBT. In response, the Company immediately formed an
- Employees
- 90% of non-branch employees quickly deployed to work remotely.
- New scheduling protocols implemented to optimize social distancing for branch staff, including drive-up/ATM and appointment-only banking.
- Additional paid time off provided to address health and childcare needs.
- Cross-training and redeployment programs directing staff resources to areas of greatest need.
- Internal and external communication increased to address rapidly changing business environment and personal impact to employees.
- Customers
- 82% of branches remain open for drive-up service and remaining branch staff redeployed to assist in other areas.
- Leveraged technology tools such as robotic process automation for payment extension requests and onboarding loans; increased use of electronic signatures.
- Digital communication channels significantly enhanced with dedicated webpages and social media content.
- Increased use of self-service with a 60% increase in mobile deposits and over 50% increase in mobile and online banking enrollment.
- As of
April 17, 2020 , 11.6% of loans are in payment deferral programs:- 74% are commercial and 26% are consumer borrowers.
- Over
$385 million in Paycheck Protection Plan (“PPP”) loans processed throughApril 16 ; will actively participate in second PPP appropriation.
Loans
- Period-end total loans were
$7.2 billion atMarch 31, 2020 compared to$7.1 billion atDecember 31, 2019 . - Commercial real estate increased
$100.0 million to$2.2 billion ; commercial and industrial loans increased$36.4 million to$1.3 billion ; total consumer loans decreased$25.2 million to$3.7 billion . - Commercial line of credit utilization rate of 32% at
March 31, 2020 remained consistent withDecember 31, 2019 of 32% and compared to 36% atMarch 31, 2019 .
Deposits
- Average total deposits in the first quarter of 2020 were
$7.7 billion , compared to$7.6 billion in the fourth quarter 2019, with annualized growth of 3.8%. - Seasonal inflow of municipal deposits resulted in increases of
$37 million on a period-average basis and$182 million on a period-end basis.
Net Interest Income and Margin
- Net interest income for the first quarter was comparable to the fourth quarter of 2019 at
$77.2 million and down slightly from the first quarter of 2019 of$77.7 million . - The net interest margin on a fully taxable equivalent (“FTE”) basis of 3.52% was flat from the fourth quarter of 2019 and down 12 basis points (“bps”) from the first quarter of 2019.
- Earning asset yields were down 6 bps from the prior quarter and down 21 bps from the same quarter in the prior year. Earnings assets grew
$124.2 million or 1.4% from the prior quarter. - The cost of interest-bearing liabilities decreased 8 bps from the prior quarter to 0.82% at
March 31, 2020 and compared to 0.92% for the first quarter of 2019.- Cost of interest-bearing deposits decreased 8 bps from the prior quarter and were 61 bps for the month of March.
- Total cost of deposits was 48 bps for the first quarter of 2020, down 6 bps from the prior quarter and flat with the same period in the prior year.
Credit Quality and CECL
- Asset quality metrics remained stable in the first quarter of 2020.
- Net charge-offs to total average loans of 32 bps compared to 30 bps in the prior quarter and 41 bps in the first quarter of 2019.
- Nonperforming assets to total assets were 0.35% compared to 0.31% at
December 31, 2019 and 0.33% atMarch 31, 2019 , driven primarily by one commercial credit of$4.2 million . - Provision expense increased
$23.6 million from the fourth quarter of 2019 primarily due to an increase in expected losses resulting from deterioration of the economic forecast due to the COVID-19 pandemic. - The allowance for loan losses was
$100.0 million , or 1.38%, of total loans compared to 1.02% atDecember 31, 2019 and 1.07% Day 1 CECL (January 1 , 2020). - Day 1 CECL impact resulted in a
$3.0 million increase to the allowance for loan losses and a$2.8 million increase to the unfunded loan commitment reserve; retained earnings decreased$4.3 million (after-tax) compared to year-end 2019.
Noninterest Income
- Total noninterest income, excluding securities gains (losses), was consistent with the prior quarter at
$36.2 million and up$2.5 million from the prior year quarter. - As compared to the prior quarter, seasonally higher insurance revenues and retirement plan fees in the first quarter of 2020 were offset by lower levels of swap fees.
- Increase from the prior year first quarter was driven by higher swap fees in other noninterest income and higher wealth management income partly reduced by lower insurance agency seasonal revenues.
- Securities losses of
$0.8 million were driven by mark-to-market adjustments on equities securities.
Noninterest Expense
- Total noninterest expense for the first quarter was up 0.8% from the previous quarter and up 3.5% from the first quarter of 2019.
- Significant variances to the prior quarter:
- Salaries and benefits seasonally higher due to higher payroll taxes and stock-based compensation expenses (
$1.5 million ). - Other noninterest expense was higher in the first quarter of 2020 due to a
$2.0 million increase in reserves for unfunded loan commitments due primarily to CECL adoption and COVID-19 pandemic expected losses and was partly offset by$0.7 million lower pension costs.
- Salaries and benefits seasonally higher due to higher payroll taxes and stock-based compensation expenses (
- Significant variances to the first quarter of 2019:
- Higher salaries and benefits primarily due to merit increases, higher number of employees, one additional business day and higher medical costs.
- Other expenses increased
$1.8 million due to an increase to the unfunded loan commitments reserve, partly offset by lower pension costs.
- Remaining portion of
FDIC insurance assessment credit was used in the first quarter of 2020.
Income Taxes
- Effective tax rate was 14.2% for the first quarter of 2020 compared to 22.0% in the fourth quarter of 2019 and 21.8% in the first quarter 2019 due to lower level of taxable income relative to total income.
Capital
- Capital ratios remain strong with tangible common equity to tangible assets increasing 49 bps since first quarter of 2019.
March 31, 2020 CET1 capital ratio of 10.90%, total leverage ratio of 10.02% and total risk-based capital ratio of 13.36%.- Tangible common equity to tangible assets1 was 8.55% at the end of the first quarter compared to 8.84% at
December 31, 2019 and 8.06% atMarch 31, 2019 . - The Company repurchased 263,507 shares of common stock during the first quarter of 2020 at a weighted average price of
$30.25 excluding commissions. The Company suspended repurchases during the quarter and does not expect to repurchase additional shares at this time. - On
March 23, 2020 , the Company announced a second quarter dividend of$0.27 per share, payable onJune 15, 2020 to shareholders of record as ofJune 1, 2020 .
Other Events
- On
April 1, 2020 , the Company completed the acquisition ofAlliance Benefit Group of Illinois, Inc. (“ABG”) based inPeoria, Illinois .- ABG provides retirement plan solutions for over 600 qualified retirement plans with over 40,000 plan participants and accumulated assets of
$3.5 billion . - ABG brings 70 new team members to EPIC Retirement Plan Services (“EPIC RPS”).
- ABG further diversifies the EPIC RPS customer base and supports its mission of “Helping America Retire.”
- ABG provides retirement plan solutions for over 600 qualified retirement plans with over 40,000 plan participants and accumulated assets of
Corporate Overview
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others: (1) competitive pressures among depository and other financial institutions may increase significantly, including competitors having greater financial resources than NBT; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect business and results; (6) NBT’s ability to successfully integrate acquired businesses and employees; (7) adverse changes may occur in the securities markets or with respect to inflation; and (8) the adverse impact on the
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in
Selected Financial Data | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2020 | 2019 | ||||||||||||||
Profitability: | 1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | ||||||||||
Diluted earnings per share | $ | 0.23 | $ | 0.66 | $ | 0.73 | $ | 0.69 | $ | 0.66 | |||||
Weighted average diluted common shares outstanding | 44,130,324 | 44,174,201 | 44,138,495 | 44,120,377 | 44,081,086 | ||||||||||
Return on average assets (2) | 0.43 | % | 1.20 | % | 1.34 | % | 1.28 | % | 1.24 | % | |||||
Return on average equity (2) | 3.69 | % | 10.36 | % | 11.83 | % | 11.63 | % | 11.52 | % | |||||
Return on average tangible common equity (1)(2) | 5.24 | % | 14.28 | % | 16.43 | % | 16.38 | % | 16.45 | % | |||||
Net interest margin (1)(2) | 3.52 | % | 3.52 | % | 3.57 | % | 3.61 | % | 3.64 | % | |||||
Balance sheet data: | |||||||||||||||
Securities available for sale | $ | 1,000,980 | $ | 975,340 | $ | 932,173 | $ | 979,696 | $ | 951,859 | |||||
Securities held to maturity | 621,359 | 630,074 | 678,435 | 744,601 | 780,565 | ||||||||||
Net loans | 7,147,383 | 7,063,133 | 6,941,444 | 6,891,108 | 6,818,907 | ||||||||||
Total assets | 9,953,543 | 9,715,925 | 9,661,386 | 9,635,718 | 9,533,510 | ||||||||||
Total deposits | 7,864,638 | 7,587,820 | 7,743,166 | 7,593,706 | 7,617,659 | ||||||||||
Total borrowings | 714,283 | 820,682 | 628,701 | 794,829 | 719,775 | ||||||||||
Total liabilities | 8,841,364 | 8,595,528 | 8,562,785 | 8,560,895 | 8,499,455 | ||||||||||
Stockholders' equity | 1,112,179 | 1,120,397 | 1,098,601 | 1,074,823 | 1,034,055 | ||||||||||
Asset quality: | |||||||||||||||
Nonaccrual loans | $ | 29,972 | $ | 25,174 | $ | 24,623 | $ | 24,669 | $ | 25,632 | |||||
90 days past due and still accruing | 2,280 | 3,717 | 8,342 | 2,387 | 3,335 | ||||||||||
Total nonperforming loans | 32,252 | 28,891 | 32,965 | 27,056 | 28,967 | ||||||||||
Other real estate owned | 2,384 | 1,458 | 2,144 | 2,203 | 2,222 | ||||||||||
Total nonperforming assets | 34,636 | 30,349 | 35,109 | 29,259 | 31,189 | ||||||||||
Allowance for loan losses | 100,000 | 72,965 | 72,365 | 72,165 | 71,405 | ||||||||||
Asset quality ratios: | |||||||||||||||
Allowance for loan losses to total loans | 1.38 | % | 1.02 | % | 1.03 | % | 1.04 | % | 1.04 | % | |||||
Total nonperforming loans to total loans | 0.45 | % | 0.40 | % | 0.47 | % | 0.39 | % | 0.42 | % | |||||
Total nonperforming assets to total assets | 0.35 | % | 0.31 | % | 0.36 | % | 0.30 | % | 0.33 | % | |||||
Allowance for loan losses to total nonperforming loans | 310.06 | % | 252.55 | % | 219.52 | % | 266.72 | % | 246.50 | % | |||||
Past due loans to total loans | 0.51 | % | 0.49 | % | 0.57 | % | 0.52 | % | 0.52 | % | |||||
Net charge-offs to average loans (2) | 0.32 | % | 0.30 | % | 0.35 | % | 0.38 | % | 0.41 | % | |||||
Capital: | |||||||||||||||
Equity to assets | 11.17 | % | 11.53 | % | 11.37 | % | 11.15 | % | 10.85 | % | |||||
Tangible equity ratio (1) | 8.55 | % | 8.84 | % | 8.65 | % | 8.41 | % | 8.06 | % | |||||
Book value per share | $ | 25.52 | $ | 25.58 | $ | 25.09 | $ | 24.56 | $ | 23.64 | |||||
Tangible book value per share (3) | $ | 18.96 | $ | 19.03 | $ | 18.52 | $ | 17.97 | $ | 17.02 | |||||
Tier 1 leverage ratio | 10.02 | % | 10.33 | % | 10.15 | % | 9.88 | % | 9.62 | % | |||||
Common equity tier 1 capital ratio | 10.90 | % | 11.29 | % | 11.14 | % | 10.95 | % | 10.69 | % | |||||
Tier 1 capital ratio | 12.14 | % | 12.56 | % | 12.42 | % | 12.24 | % | 11.99 | % | |||||
Total risk-based capital ratio | 13.36 | % | 13.52 | % | 13.38 | % | 13.21 | % | 12.98 | % | |||||
Common stock price (end of period) | $ | 32.39 | $ | 40.56 | $ | 36.59 | $ | 37.51 | $ | 36.01 | |||||
Consolidated Balance Sheets | ||||||
(unaudited, dollars in thousands) | ||||||
Assets | 2020 | 2019 | ||||
Cash and due from banks | $ | 160,106 | $ | 170,595 | ||
Short-term interest bearing accounts | 123,254 | 46,248 | ||||
Equity securities, at fair value | 26,378 | 27,771 | ||||
Securities available for sale, at fair value | 1,000,980 | 975,340 | ||||
Securities held to maturity (fair value |
621,359 | 630,074 | ||||
41,018 | 44,620 | |||||
Loans held for sale | 6,475 | 11,731 | ||||
Loans | 7,247,383 | 7,136,098 | ||||
Less allowance for loan losses | 100,000 | 72,965 | ||||
Net loans | $ | 7,147,383 | $ | 7,063,133 | ||
Premises and equipment, net | 76,502 | 75,631 | ||||
274,769 | 274,769 | |||||
Intangible assets, net | 11,186 | 12,020 | ||||
Bank owned life insurance | 183,122 | 181,748 | ||||
Other assets | 281,011 | 202,245 | ||||
Total assets | $ | 9,953,543 | $ | 9,715,925 | ||
Liabilities and stockholders' equity | ||||||
Demand (noninterest bearing) | $ | 2,423,077 | $ | 2,414,383 | ||
Savings, NOW and money market | 4,598,282 | 4,312,244 | ||||
Time | 843,279 | 861,193 | ||||
Total deposits | $ | 7,864,638 | $ | 7,587,820 | ||
Short-term borrowings | 548,904 | 655,275 | ||||
Long-term debt | 64,183 | 64,211 | ||||
Junior subordinated debt | 101,196 | 101,196 | ||||
Other liabilities | 262,443 | 187,026 | ||||
Total liabilities | $ | 8,841,364 | $ | 8,595,528 | ||
Total stockholders' equity | $ | 1,112,179 | $ | 1,120,397 | ||
Total liabilities and stockholders' equity | $ | 9,953,543 | $ | 9,715,925 | ||
Quarterly Consolidated Statements of Income | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |||||||||||
Interest, fee and dividend income | |||||||||||||||
Interest and fees on loans | $ | 78,728 | $ | 79,800 | $ | 81,082 | $ | 81,271 | $ | 79,321 | |||||
Securities available for sale | 5,753 | 5,639 | 5,711 | 6,031 | 5,922 | ||||||||||
Securities held to maturity | 4,091 | 4,213 | 4,586 | 5,089 | 5,217 | ||||||||||
Other | 829 | 924 | 1,002 | 842 | 884 | ||||||||||
Total interest, fee and dividend income | $ | 89,401 | $ | 90,576 | $ | 92,381 | $ | 93,233 | $ | 91,344 | |||||
Interest expense | |||||||||||||||
Deposits | $ | 9,104 | $ | 10,181 | $ | 10,745 | $ | 10,234 | $ | 8,826 | |||||
Short-term borrowings | 1,797 | 1,707 | 1,989 | 2,760 | 3,237 | ||||||||||
Long-term debt | 393 | 484 | 498 | 471 | 422 | ||||||||||
Junior subordinated debt | 926 | 1,021 | 1,095 | 1,141 | 1,168 | ||||||||||
Total interest expense | $ | 12,220 | $ | 13,393 | $ | 14,327 | $ | 14,606 | $ | 13,653 | |||||
Net interest income | $ | 77,181 | $ | 77,183 | $ | 78,054 | $ | 78,627 | $ | 77,691 | |||||
Provision for loan losses | 29,640 | 6,004 | 6,324 | 7,277 | 5,807 | ||||||||||
Net interest income after provision for loan losses | $ | 47,541 | $ | 71,179 | $ | 71,730 | $ | 71,350 | $ | 71,884 | |||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | $ | 3,997 | $ | 4,361 | $ | 4,330 | $ | 4,224 | $ | 4,236 | |||||
ATM and debit card fees | 5,854 | 5,935 | 6,277 | 6,156 | 5,525 | ||||||||||
Retirement plan administration fees | 7,941 | 7,218 | 7,600 | 7,836 | 7,734 | ||||||||||
Wealth management (4) | 7,273 | 7,085 | 7,630 | 7,122 | 6,563 | ||||||||||
Insurance (4) | 4,269 | 3,479 | 4,000 | 3,547 | 4,744 | ||||||||||
Bank owned life insurance income | 1,374 | 1,236 | 1,556 | 1,186 | 1,377 | ||||||||||
Net securities (losses) gains | (812 | ) | 189 | 4,036 | (69 | ) | 57 | ||||||||
Other | 5,527 | 6,738 | 4,291 | 4,239 | 3,585 | ||||||||||
Total noninterest income | $ | 35,423 | $ | 36,241 | $ | 39,720 | $ | 34,241 | $ | 33,821 | |||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | $ | 40,750 | $ | 39,592 | $ | 39,352 | $ | 38,567 | $ | 39,356 | |||||
Occupancy | 5,995 | 5,653 | 5,335 | 5,443 | 6,275 | ||||||||||
Data processing and communications | 4,233 | 4,719 | 4,492 | 4,693 | 4,414 | ||||||||||
Professional fees and outside services | 3,897 | 4,223 | 3,535 | 3,359 | 3,668 | ||||||||||
Equipment | 4,642 | 4,821 | 4,487 | 4,518 | 4,757 | ||||||||||
Office supplies and postage | 1,636 | 1,744 | 1,667 | 1,577 | 1,591 | ||||||||||
311 | - | (20 | ) | 949 | 1,017 | ||||||||||
Advertising | 609 | 952 | 677 | 641 | 503 | ||||||||||
Amortization of intangible assets | 835 | 844 | 874 | 893 | 968 | ||||||||||
Loan collection and other real estate owned, net | 1,017 | 1,436 | 976 | 961 | 785 | ||||||||||
Other | 6,956 | 6,310 | 8,374 | 4,630 | 5,126 | ||||||||||
Total noninterest expense | $ | 70,881 | $ | 70,294 | $ | 69,749 | $ | 66,231 | $ | 68,460 | |||||
Income before income tax expense | $ | 12,083 | $ | 37,126 | $ | 41,701 | $ | 39,360 | $ | 37,245 | |||||
Income tax expense | 1,715 | 8,166 | 9,322 | 8,805 | 8,118 | ||||||||||
Net income | $ | 10,368 | $ | 28,960 | $ | 32,379 | $ | 30,555 | $ | 29,127 | |||||
Earnings Per Share | |||||||||||||||
Basic | $ | 0.24 | $ | 0.66 | $ | 0.74 | $ | 0.70 | $ | 0.67 | |||||
Diluted | $ | 0.23 | $ | 0.66 | $ | 0.73 | $ | 0.69 | $ | 0.66 | |||||
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 |
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Q1 - 2020 | Q4 - 2019 | Q3 - 2019 | Q2 - 2019 | Q1 - 2019 | ||||||||||||
Assets | ||||||||||||||||
Short-term interest bearing accounts | $ | 74,695 | 1.28% | $ | 51,613 | 2.43% | $ | 57,530 | 1.95% | $ | 25,783 | 1.28% | $ | 9,065 | 4.07% | |
Securities available for sale (1) (5) | 962,527 | 2.40% | 942,302 | 2.37% | 940,256 | 2.41% | 981,079 | 2.47% | 984,704 | 2.45% | ||||||
Securities held to maturity (1) (5) | 622,398 | 2.81% | 651,305 | 2.73% | 698,617 | 2.77% | 770,651 | 2.83% | 782,570 | 2.90% | ||||||
Investment in FRB and FHLB Banks | 39,784 | 5.97% | 37,842 | 6.37% | 40,525 | 7.04% | 46,179 | 6.60% | 49,152 | 6.54% | ||||||
Loans (1) (6) | 7,163,114 | 4.42% | 7,055,288 | 4.49% | 6,987,476 | 4.61% | 6,958,299 | 4.69% | 6,886,672 | 4.68% | ||||||
Total interest earning assets | $ | 8,862,518 | 4.07% | $ | 8,738,350 | 4.13% | $ | 8,724,404 | 4.22% | $ | 8,781,991 | 4.28% | $ | 8,712,163 | 4.28% | |
Other assets | 885,570 | 861,909 | 852,616 | 816,748 | 795,585 | |||||||||||
Total assets | $ | 9,748,088 | $ | 9,600,259 | $ | 9,577,020 | $ | 9,598,739 | $ | 9,507,748 | ||||||
Liabilities and stockholders' equity | ||||||||||||||||
Money market deposit accounts | $ | 2,101,306 | 1.00% | $ | 2,057,678 | 1.16% | $ | 2,015,297 | 1.24% | $ | 1,916,045 | 1.16% | $ | 1,804,053 | 0.99% | |
NOW deposit accounts | 1,086,205 | 0.10% | 1,064,193 | 0.13% | 1,056,001 | 0.13% | 1,127,413 | 0.13% | 1,135,213 | 0.16% | ||||||
Savings deposits | 1,276,285 | 0.06% | 1,251,432 | 0.06% | 1,274,793 | 0.06% | 1,282,084 | 0.06% | 1,252,042 | 0.06% | ||||||
Time deposits | 842,989 | 1.62% | 853,353 | 1.69% | 893,837 | 1.75% | 953,698 | 1.73% | 942,457 | 1.64% | ||||||
Total interest bearing deposits | $ | 5,306,785 | 0.69% | $ | 5,226,656 | 0.77% | $ | 5,239,928 | 0.81% | $ | 5,279,240 | 0.78% | $ | 5,133,765 | 0.70% | |
Short-term borrowings | 533,516 | 1.35% | 475,332 | 1.42% | 490,694 | 1.61% | 620,898 | 1.78% | 712,306 | 1.84% | ||||||
Long-term debt | 64,194 | 2.46% | 81,613 | 2.35% | 84,250 | 2.35% | 82,414 | 2.29% | 73,707 | 2.32% | ||||||
Junior subordinated debt | 101,196 | 3.68% | 101,196 | 4.00% | 101,196 | 4.29% | 101,196 | 4.52% | 101,196 | 4.68% | ||||||
Total interest bearing liabilities | $ | 6,005,691 | 0.82% | $ | 5,884,797 | 0.90% | $ | 5,916,068 | 0.96% | $ | 6,083,748 | 0.96% | $ | 6,020,974 | 0.92% | |
Demand deposits | 2,398,307 | 2,406,563 | 2,389,617 | 2,298,867 | 2,309,531 | |||||||||||
Other liabilities | 214,495 | 199,674 | 185,374 | 162,374 | 151,490 | |||||||||||
Stockholders' equity | 1,129,595 | 1,109,225 | 1,085,961 | 1,053,750 | 1,025,753 | |||||||||||
Total liabilities and stockholders' equity | $ | 9,748,088 | $ | 9,600,259 | $ | 9,577,020 | $ | 9,598,739 | $ | 9,507,748 | ||||||
Interest rate spread | 3.25% | 3.23% | 3.26% | 3.32% | 3.36% | |||||||||||
Net interest margin (FTE) (1) | 3.52% | 3.52% | 3.57% | 3.61% | 3.64% | |||||||||||
Consolidated Loan Balances | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |||||||||||
Commercial | $ | 1,338,609 | $ | 1,302,209 | $ | 1,317,649 | $ | 1,299,784 | $ | 1,306,551 | |||||
Commercial real estate | 2,242,139 | 2,142,057 | 2,033,552 | 2,025,280 | 1,943,931 | ||||||||||
Residential real estate mortgages | 1,446,676 | 1,445,156 | 1,416,920 | 1,404,079 | 1,390,411 | ||||||||||
Indirect auto | 1,184,888 | 1,193,635 | 1,195,783 | 1,189,670 | 1,191,111 | ||||||||||
Specialty lending | 539,378 | 542,063 | 528,505 | 519,974 | 529,144 | ||||||||||
Home equity | 431,536 | 444,082 | 452,535 | 456,754 | 463,582 | ||||||||||
Other consumer | 64,157 | 66,896 | 68,865 | 67,732 | 65,582 | ||||||||||
Total loans | $ | 7,247,383 | $ | 7,136,098 | $ | 7,013,809 | $ | 6,963,273 | $ | 6,890,312 | |||||
The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of |
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Industry | % of Total Loans |
||||||||||||||
Accommodations | 2.4% | ||||||||||||||
Healthcare services and practices | 2.0% | ||||||||||||||
Restaurants and entertainment | 1.9% | ||||||||||||||
Retailers | 1.7% | ||||||||||||||
Automotive | 1.5% | ||||||||||||||
Total | 9.5% | ||||||||||||||
Allowance for Loan Losses as a Percentage of Loans by Segment (7): | |||||||||||||||
Incurred | CECL | ||||||||||||||
Commercial & industrial | 0.96% | 0.98% | 1.43% | ||||||||||||
Commercial real estate | 1.02% | 0.74% | 1.10% | ||||||||||||
Residential real estate | 0.27% | 0.83% | 0.99% | ||||||||||||
Auto | 0.83% | 0.78% | 1.08% | ||||||||||||
Other consumer | 3.74% | 3.66% | 4.00% | ||||||||||||
Total | 1.02% | 1.07% | 1.38% | ||||||||||||
1 | The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
Non-GAAP measures | ||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||
Pre-provision net revenue ("PPNR") | 2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | ||||||||||||
Income before income tax expense | $ | 12,083 | $ | 37,126 | $ | 41,701 | $ | 39,360 | $ | 37,245 | ||||||
Add: Provision for loan losses | 29,640 | 6,004 | 6,324 | 7,277 | 5,807 | |||||||||||
PPNR | $ | 41,723 | $ | 43,130 | $ | 48,025 | $ | 46,637 | $ | 43,052 | ||||||
Less: Net securities (losses) gains | (812 | ) | 189 | 4,036 | (69 | ) | 57 | |||||||||
PPNR excluding securities (losses) gains | $ | 42,535 | $ | 42,941 | $ | 43,989 | $ | 46,706 | $ | 42,995 | ||||||
PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic. | ||||||||||||||||
FTE Adjustment | 2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | ||||||||||||
Net interest income | $ | 77,181 | $ | 77,183 | $ | 78,054 | $ | 78,627 | $ | 77,691 | ||||||
Add: FTE adjustment | 329 | 349 | 374 | 445 | 500 | |||||||||||
Net interest income (FTE) | $ | 77,510 | $ | 77,532 | $ | 78,428 | $ | 79,072 | $ | 78,191 | ||||||
Average earning assets | $ | 8,862,518 | $ | 8,738,350 | $ | 8,724,404 | $ | 8,781,991 | $ | 8,712,163 | ||||||
Net interest margin (FTE) | 3.52 | % | 3.52 | % | 3.57 | % | 3.61 | % | 3.64 | % | ||||||
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. | ||||||||||||||||
Tangible equity to tangible assets | 2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | ||||||||||||
Total equity | $ | 1,112,179 | $ | 1,120,397 | $ | 1,098,601 | $ | 1,074,823 | $ | 1,034,055 | ||||||
Intangible assets | 285,955 | 286,789 | 287,633 | 288,507 | 289,400 | |||||||||||
Total assets | $ | 9,953,543 | $ | 9,715,925 | $ | 9,661,386 | $ | 9,635,718 | $ | 9,533,510 | ||||||
Tangible equity to tangible assets | 8.55 | % | 8.84 | % | 8.65 | % | 8.41 | % | 8.06 | % | ||||||
Return on average tangible common equity | 2020 | 2019 | ||||||||||||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | ||||||||||||
Net income | $ | 10,368 | $ | 28,960 | $ | 32,379 | $ | 30,555 | $ | 29,127 | ||||||
Amortization of intangible assets (net of tax) | 626 | 633 | 656 | 670 | 726 | |||||||||||
Net income, excluding intangibles amortization | $ | 10,994 | $ | 29,593 | $ | 33,035 | $ | 31,225 | $ | 29,853 | ||||||
Average stockholders' equity | $ | 1,129,595 | $ | 1,109,225 | $ | 1,085,961 | $ | 1,053,750 | $ | 1,025,753 | ||||||
Less: average goodwill and other intangibles | 286,400 | 287,268 | 288,077 | 288,930 | 289,913 | |||||||||||
Average tangible common equity | $ | 843,195 | $ | 821,957 | $ | 797,884 | $ | 764,820 | $ | 735,840 | ||||||
Return on average tangible common equity | 5.24 | % | 14.28 | % | 16.43 | % | 16.38 | % | 16.45 | % | ||||||
2 | Annualized. | |||||||||||||||
3 | Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | |||||||||||||||
4 | Other financial services revenue previously disclosed and included with Insurance income has been reclassified and combined with Trust income and is disclosed as Wealth management income. | |||||||||||||||
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. | |||||||||||||||
7 | The allowance for loan losses for |
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Contact: | 607-337-6589 |
Source: NBT Bancorp Inc.