NBT Bancorp Inc. Announces Net Income of $18.2 Million for the First Quarter of 2015; Announces 5% Dividend Increase
The reported results for the three months ended
First Quarter 2015 Highlights:
-
2015 second quarter 5% dividend increase from
$0.21 per share to$0.22 per share
-
Continued positive trends in asset quality indicators
-
Past due loans to total loans improved to 0.54% at
March 31, 2015 from 0.69% atDecember 31, 2014
-
Net charge-offs to average loans improved to 0.34% for the first quarter of 2015 from 0.70% for the fourth quarter of 2014 and 0.41% for the 2014 year
-
Past due loans to total loans improved to 0.54% at
- Net interest margin remained stable at 3.60% for the first quarter of 2015 as compared with 3.61% for both the fourth quarter and full year of 2014
"Our results for the first quarter of 2015 represent another solid quarter for our company," said NBT President and CEO
Net interest income was
Noninterest income for the three months ended
Noninterest expense for the three months ended
Asset Quality
Net charge-offs were
Nonperforming loans to total loans was 0.85% at
The allowance for loan losses totaled
Balance Sheet
Total assets were
Stock Repurchase Program
The Company did not purchase shares of its common stock during the three months ended
Dividend
The NBT Board of Directors approved a 2015 second-quarter cash dividend 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
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in
NBT Bancorp Inc. and Subsidiaries | |||||
SELECTED FINANCIAL DATA | |||||
(unaudited, dollars in thousands except per share data) | |||||
2015 | 2014 | ||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |
Reconciliation of Non-GAAP Financial Measures: | |||||
Reported net income (GAAP) | $18,166 | $18,513 | $10,912 | $27,640 | $18,009 |
Adj: (Gain) / Loss on sale of securities, net (net of tax) | (9) | (22) | (25) | (9) | (5) |
Adj: Other adjustments (net of tax) (1) | -- | 11 | 83 | (315) | 430 |
Adj: Gain on sale of Springstone (net of tax and related incentive compensation) | -- | -- | -- | (11,168) | -- |
Adj: Prepayment penalties related to debt restructuring (net of tax) | -- | -- | 8,833 | 2,925 | -- |
Total Adjustments | (9) | (11) | 8,891 | (8,567) | 425 |
Core net income | $18,157 | $18,502 | $19,803 | $19,073 | $18,434 |
Profitability: | |||||
Core Diluted Earnings Per Share | $0.41 | $0.42 | $0.45 | $0.43 | $0.42 |
Diluted Earnings Per Share | $0.41 | $0.42 | $0.25 | $0.62 | $0.41 |
Weighted Average Diluted | |||||
Common Shares Outstanding | 44,641,913 | 44,535,274 | 44,405,357 | 44,363,787 | 44,296,445 |
Core Return on Average Assets (2) | 0.94% | 0.94% | 1.01% | 0.99% | 0.98% |
Return on Average Assets (2) | 0.94% | 0.94% | 0.55% | 1.43% | 0.95% |
Core Return on Average Equity (2) | 8.45% | 8.45% | 9.19% | 9.06% | 9.02% |
Return on Average Equity (2) | 8.46% | 8.46% | 5.06% | 13.12% | 8.81% |
Core Return on Average Tangible Common Equity (2)(4) | 13.07% | 13.08% | 14.35% | 14.27% | 14.48% |
Return on Average Tangible Common Equity (2)(4) | 13.08% | 13.09% | 8.15% | 20.43% | 14.16% |
Net Interest Margin (2)(3) | 3.60% | 3.61% | 3.61% | 3.60% | 3.63% |
(1) Primarily net gain on settlement of litigation and reorganization expenses for 2014. | |||||
(2) Annualized | |||||
(3) Calculated on a Fully Tax Equivalent ("FTE") basis | |||||
(4) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: | |||||
2015 | 2014 | ||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |
Average stockholders' equity | $ 871,074 | $ 868,634 | $ 855,164 | $ 844,707 | $ 828,588 |
Less: average goodwill and other intangibles | 283,508 | 284,743 | 285,993 | 287,366 | 290,019 |
Average tangible common equity | $ 587,566 | $ 583,891 | $ 569,171 | $ 557,341 | $ 538,569 |
NBT Bancorp Inc. and Subsidiaries | |||||
SELECTED FINANCIAL DATA | |||||
(unaudited, dollars in thousands except per share data) | |||||
2015 | 2014 | ||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |
Balance Sheet Data: | |||||
Securities Available for Sale | $1,071,654 | $1,013,171 | $1,044,502 | $1,378,799 | $1,377,585 |
Securities Held to Maturity | 456,773 | 454,361 | 459,620 | 125,965 | 117,896 |
Net Loans | 5,557,664 | 5,528,912 | 5,517,757 | 5,504,954 | 5,412,591 |
Total Assets | 7,863,861 | 7,797,926 | 7,867,031 | 7,869,512 | 7,753,129 |
Total Deposits | 6,479,437 | 6,299,605 | 6,314,939 | 6,042,588 | 6,068,898 |
Total Borrowings | 425,143 | 548,943 | 607,889 | 886,799 | 766,753 |
Total Liabilities | 6,986,367 | 6,933,745 | 7,009,591 | 7,012,371 | 6,920,927 |
Stockholders' Equity | 877,494 | 864,181 | 857,440 | 857,141 | 832,202 |
Asset Quality: | |||||
Nonaccrual Loans | $45,053 | $41,074 | $50,531 | $51,234 | $51,464 |
90 Days Past Due and Still Accruing | 2,601 | 4,941 | 4,022 | 2,186 | 2,700 |
Total Nonperforming Loans | 47,654 | 46,015 | 54,553 | 53,420 | 54,164 |
Other Real Estate Owned | 4,387 | 3,964 | 1,497 | 1,953 | 2,564 |
Total Nonperforming Assets | 52,041 | 49,979 | 56,050 | 55,373 | 56,728 |
Allowance for Loan Losses | 65,359 | 66,359 | 69,334 | 69,534 | 69,434 |
Asset Quality Ratios (Total): | |||||
Allowance for Loan Losses to Total Loans | 1.16% | 1.19% | 1.24% | 1.25% | 1.27% |
Total Nonperforming Loans to Total Loans | 0.85% | 0.82% | 0.98% | 0.96% | 0.99% |
Total Nonperforming Assets to Total Assets | 0.66% | 0.64% | 0.71% | 0.70% | 0.73% |
Allowance for Loan Losses to Total Nonperforming Loans | 137.15% | 144.21% | 127.09% | 130.16% | 128.19% |
Past Due Loans to Total Loans | 0.54% | 0.69% | 0.65% | 0.57% | 0.57% |
Net Charge-Offs to Average Loans (3) | 0.34% | 0.70% | 0.36% | 0.30% | 0.27% |
Asset Quality Ratios (Originated) (1): | |||||
Allowance for Loan Losses to Loans | 1.29% | 1.36% | 1.38% | 1.44% | 1.51% |
Nonperforming Loans to Loans | 0.69% | 0.72% | 0.83% | 0.81% | 0.82% |
Allowance for Loan Losses to Nonperforming Loans | 188.68% | 187.88% | 166.69% | 177.01% | 183.29% |
Past Due Loans to Loans | 0.56% | 0.73% | 0.70% | 0.59% | 0.62% |
Capital: | |||||
Equity to Assets | 11.16% | 11.08% | 10.90% | 10.89% | 10.73% |
Book Value Per Share | $19.95 | $19.69 | $19.62 | $19.61 | $19.09 |
Tangible Book Value Per Share (2) | $13.52 | $13.22 | $13.09 | $13.06 | $12.48 |
Tier 1 Leverage Ratio | 9.72% | 9.39% | 9.20% | 9.23% | 9.05% |
Common Equity Tier 1 Capital Ratio | 10.46% | N/A | N/A | N/A | N/A |
Tier 1 Capital Ratio | 12.05% | 12.32% | 11.94% | 11.87% | 11.73% |
Total Risk-Based Capital Ratio | 13.15% | 13.50% | 13.16% | 13.09% | 12.97% |
Common Stock Price (End of Period) | $25.06 | $26.27 | $22.52 | $24.02 | $24.46 |
(1) Excludes acquired loans | |||||
(2) Stockholders' equity less goodwill and intangible assets divided by common shares outstanding | |||||
(3) Annualized | |||||
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. |
NBT Bancorp Inc. and Subsidiaries | ||
CONSOLIDATED BALANCE SHEETS | ||
(unaudited, dollars in thousands) | ||
March 31, | December 31, | |
ASSETS | 2015 | 2014 |
Cash and due from banks | $ 133,727 | $ 139,635 |
Short term interest bearing accounts | 8,936 | 7,001 |
Securities available for sale, at fair value | 1,071,654 | 1,013,171 |
Securities held to maturity (fair value of $461,224 and $454,994 at March 31, 2015 and December 31, 2014, respectively) | 456,773 | 454,361 |
Trading securities | 8,265 | 7,793 |
Federal Reserve and Federal Home Loan Bank stock | 27,762 | 32,626 |
Loans | 5,623,023 | 5,595,271 |
Less allowance for loan losses | 65,359 | 66,359 |
Net loans | 5,557,664 | 5,528,912 |
Premises and equipment, net | 88,150 | 89,258 |
Goodwill | 263,634 | 263,634 |
Intangible assets, net | 19,084 | 20,317 |
Bank owned life insurance | 114,342 | 114,251 |
Other assets | 113,870 | 126,967 |
TOTAL ASSETS | $ 7,863,861 | $ 7,797,926 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Deposits: | ||
Demand (noninterest bearing) | $ 1,797,879 | $ 1,838,622 |
Savings, NOW, and money market | 3,685,121 | 3,417,160 |
Time | 996,437 | 1,043,823 |
Total deposits | 6,479,437 | 6,299,605 |
Short-term borrowings | 193,172 | 316,802 |
Long-term debt | 130,775 | 130,945 |
Junior subordinated debt | 101,196 | 101,196 |
Other liabilities | 81,787 | 85,197 |
Total liabilities | 6,986,367 | 6,933,745 |
Total stockholders' equity | 877,494 | 864,181 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,863,861 | $ 7,797,926 |
NBT Bancorp Inc. and Subsidiaries | ||
CONSOLIDATED STATEMENTS OF INCOME | ||
(unaudited, dollars in thousands except per share data) | ||
Three Months Ended | ||
March 31, | ||
2015 | 2014 | |
Interest, fee and dividend income: | ||
Loans | $ 59,518 | $ 60,015 |
Securities available for sale | 4,945 | 6,757 |
Securities held to maturity | 2,283 | 768 |
Other | 480 | 537 |
Total interest, fee and dividend income | 67,226 | 68,077 |
Interest expense: | ||
Deposits | 3,573 | 3,284 |
Short-term borrowings | 121 | 231 |
Long-term debt | 826 | 2,507 |
Junior subordinated debt | 540 | 538 |
Total interest expense | 5,060 | 6,560 |
Net interest income | 62,166 | 61,517 |
Provision for loan losses | 3,642 | 3,596 |
Net interest income after provision for loan losses | 58,524 | 57,921 |
Noninterest income: | ||
Insurance and other financial services revenue | 6,374 | 6,737 |
Service charges on deposit accounts | 4,072 | 4,369 |
ATM and debit card fees | 4,248 | 4,072 |
Retirement plan administration fees | 3,196 | 2,918 |
Trust | 4,450 | 4,446 |
Bank owned life insurance income | 1,559 | 1,382 |
Net securities gains | 14 | 7 |
Other | 2,621 | 2,346 |
Total noninterest income | 26,534 | 26,277 |
Noninterest expense: | ||
Salaries and employee benefits | 30,182 | 29,534 |
Occupancy | 6,066 | 6,226 |
Data processing and communications | 4,103 | 4,001 |
Professional fees and outside services | 3,497 | 3,415 |
Equipment | 3,249 | 3,116 |
Office supplies and postage | 1,619 | 1,685 |
FDIC expenses | 1,198 | 1,278 |
Advertising | 719 | 739 |
Amortization of intangible assets | 1,284 | 1,310 |
Loan collection and other real estate owned | 872 | 1,040 |
Other operating | 4,913 | 5,173 |
Total noninterest expense | 57,702 | 57,517 |
Income before income taxes | 27,356 | 26,681 |
Income taxes | 9,190 | 8,672 |
Net income | $ 18,166 | $ 18,009 |
Earnings Per Share: | ||
Basic | $ 0.41 | $ 0.41 |
Diluted | $ 0.41 | $ 0.41 |
NBT Bancorp Inc. and Subsidiaries | |||||
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |||||
(unaudited, dollars in thousands except per share data) | |||||
2015 | 2014 | ||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |
Interest, fee and dividend income: | |||||
Loans | $ 59,518 | $ 61,577 | $ 61,173 | $ 60,559 | $ 60,015 |
Securities available for sale | 4,945 | 5,000 | 6,095 | 6,612 | 6,757 |
Securities held to maturity | 2,283 | 2,357 | 1,353 | 783 | 768 |
Other | 480 | 480 | 513 | 502 | 537 |
Total interest, fee and dividend income | 67,226 | 69,414 | 69,134 | 68,456 | 68,077 |
Interest expense: | |||||
Deposits | 3,573 | 3,856 | 3,498 | 3,000 | 3,284 |
Short-term borrowings | 121 | 143 | 262 | 209 | 231 |
Long-term debt | 826 | 846 | 1,067 | 2,135 | 2,507 |
Junior subordinated debt | 540 | 545 | 544 | 538 | 538 |
Total interest expense | 5,060 | 5,390 | 5,371 | 5,882 | 6,560 |
Net interest income | 62,166 | 64,024 | 63,763 | 62,574 | 61,517 |
Provision for loan losses | 3,642 | 6,892 | 4,885 | 4,166 | 3,596 |
Net interest income after provision for loan losses | 58,524 | 57,132 | 58,878 | 58,408 | 57,921 |
Noninterest income: | |||||
Insurance and other financial services revenue | 6,374 | 6,007 | 6,179 | 5,594 | 6,737 |
Service charges on deposit accounts | 4,072 | 4,656 | 4,519 | 4,397 | 4,369 |
ATM and debit card fees | 4,248 | 4,266 | 4,440 | 4,357 | 4,072 |
Retirement plan administration fees | 3,196 | 2,962 | 3,272 | 2,977 | 2,918 |
Trust | 4,450 | 4,793 | 4,758 | 4,953 | 4,446 |
Bank owned life insurance income | 1,559 | 1,894 | 1,095 | 978 | 1,382 |
Net securities gains | 14 | 33 | 38 | 14 | 7 |
Gain on the sale of Springstone investment | -- | -- | -- | 19,401 | -- |
Other | 2,621 | 2,435 | 2,376 | 3,356 | 2,346 |
Total noninterest income | 26,534 | 27,046 | 26,677 | 46,027 | 26,277 |
Noninterest expense: | |||||
Salaries and employee benefits | 30,182 | 30,058 | 28,933 | 31,142 | 29,534 |
Occupancy | 6,066 | 5,256 | 5,211 | 5,435 | 6,226 |
Data processing and communications | 4,103 | 4,092 | 4,029 | 4,015 | 4,001 |
Professional fees and outside services | 3,497 | 3,564 | 3,695 | 3,752 | 3,415 |
Equipment | 3,249 | 3,211 | 3,199 | 3,132 | 3,116 |
Office supplies and postage | 1,619 | 1,762 | 1,733 | 1,803 | 1,685 |
FDIC expenses | 1,198 | 1,302 | 1,135 | 1,229 | 1,278 |
Advertising | 719 | 963 | 403 | 726 | 739 |
Amortization of intangible assets | 1,284 | 1,226 | 1,275 | 1,236 | 1,310 |
Loan collection and other real estate owned | 872 | 702 | 705 | 801 | 1,040 |
Prepayment penalties on long-term debt | -- | -- | 13,348 | 4,554 | -- |
Other operating | 4,913 | 4,607 | 5,401 | 4,911 | 5,173 |
Total noninterest expense | 57,702 | 56,743 | 69,067 | 62,736 | 57,517 |
Income before income taxes | 27,356 | 27,435 | 16,488 | 41,699 | 26,681 |
Income taxes | 9,190 | 8,922 | 5,576 | 14,059 | 8,672 |
Net income | $ 18,166 | $ 18,513 | $ 10,912 | $ 27,640 | $ 18,009 |
Earnings per share: | |||||
Basic | $ 0.41 | $ 0.42 | $ 0.25 | $ 0.63 | $ 0.41 |
Diluted | $ 0.41 | $ 0.42 | $ 0.25 | $ 0.62 | $ 0.41 |
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 | |
Q1 - 2015 | Q4 - 2014 | Q3 - 2014 | Q2 - 2014 | Q1 - 2014 | ||||||
ASSETS: | ||||||||||
Short-term interest bearing accounts | $ 9,156 | 0.30% | $ 5,895 | 0.51% | $ 4,791 | 0.54% | $ 3,915 | 0.76% | $ 2,733 | 1.02% |
Securities available for sale (1)(2) | 1,018,880 | 2.02% | 1,018,505 | 2.00% | 1,263,375 | 2.01% | 1,376,314 | 2.05% | 1,381,744 | 2.11% |
Securities held to maturity (1) | 454,957 | 2.47% | 458,038 | 2.45% | 234,403 | 2.84% | 121,042 | 3.43% | 116,613 | 3.52% |
Investment in FRB and FHLB Banks | 30,931 | 6.20% | 31,274 | 6.01% | 39,459 | 5.06% | 42,965 | 4.63% | 43,596 | 4.94% |
Loans (3) | 5,586,942 | 4.33% | 5,603,268 | 4.37% | 5,563,206 | 4.38% | 5,517,315 | 4.42% | 5,425,938 | 4.50% |
Total interest earning assets | $ 7,100,866 | 3.89% | $ 7,116,980 | 3.92% | $ 7,105,234 | 3.91% | $ 7,061,551 | 3.94% | $ 6,970,624 | 4.01% |
Other assets | 696,091 | 709,955 | 697,814 | 680,059 | 679,246 | |||||
Total assets | $ 7,796,957 | $ 7,826,935 | $ 7,803,048 | $ 7,741,610 | $ 7,649,870 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||
Money market deposit accounts | $1,544,488 | 0.21% | $1,524,881 | 0.20% | $1,452,287 | 0.19% | $1,441,284 | 0.15% | $1,411,444 | 0.15% |
NOW deposit accounts | 972,263 | 0.05% | 978,527 | 0.05% | 927,026 | 0.05% | 960,698 | 0.06% | 932,528 | 0.05% |
Savings deposits | 1,040,031 | 0.06% | 1,017,300 | 0.08% | 1,025,795 | 0.07% | 1,040,528 | 0.07% | 1,000,029 | 0.07% |
Time deposits | 1,014,904 | 1.00% | 1,058,615 | 1.03% | 1,032,370 | 0.96% | 971,595 | 0.88% | 999,579 | 0.99% |
Total interest bearing deposits | $ 4,571,686 | 0.32% | $ 4,579,323 | 0.33% | $ 4,437,478 | 0.31% | $ 4,414,105 | 0.27% | $ 4,343,580 | 0.31% |
Short-term borrowings | 265,420 | 0.19% | 299,981 | 0.19% | 447,761 | 0.23% | 383,480 | 0.22% | 398,951 | 0.24% |
Junior subordinated debentures | 101,196 | 2.16% | 101,196 | 2.13% | 101,196 | 2.13% | 101,196 | 2.13% | 101,196 | 2.16% |
Long-term debt | 130,879 | 2.56% | 131,000 | 2.56% | 170,223 | 2.49% | 290,791 | 2.95% | 308,760 | 3.29% |
Total interest bearing liabilities | $ 5,069,181 | 0.40% | $ 5,111,500 | 0.42% | $ 5,156,658 | 0.41% | $ 5,189,572 | 0.45% | $ 5,152,487 | 0.52% |
Demand deposits | 1,770,703 | 1,759,482 | 1,708,632 | 1,620,488 | 1,589,865 | |||||
Other liabilities | 85,999 | 87,319 | 82,594 | 86,843 | 78,930 | |||||
Stockholders' equity | 871,074 | 868,634 | 855,164 | 844,707 | 828,588 | |||||
Total liabilities and stockholders' equity | $ 7,796,957 | $ 7,826,935 | $ 7,803,048 | $ 7,741,610 | $ 7,649,870 | |||||
Interest rate spread | 3.49% | 3.50% | 3.50% | 3.49% | 3.49% | |||||
Net interest margin | 3.60% | 3.61% | 3.61% | 3.60% | 3.63% | |||||
(1) Securities are shown at average amortized cost | ||||||||||
(2) Excluding unrealized gains or losses | ||||||||||
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
NBT Bancorp Inc. and Subsidiaries | |||||
CONSOLIDATED LOAN BALANCES | |||||
(unaudited, dollars in thousands) | |||||
2015 | 2014 | ||||
1st Q | 4th Q | 3rd Q | 2nd Q | 1st Q | |
Residential real estate mortgages | $ 1,125,600 | $ 1,115,589 | $ 1,100,139 | $ 1,073,207 | $ 1,056,793 |
Commercial | 844,101 | 839,770 | 862,098 | 895,128 | 878,152 |
Commercial real estate mortgages | 1,443,608 | 1,442,989 | 1,411,689 | 1,378,065 | 1,347,940 |
Real estate construction and development | 91,382 | 83,750 | 75,874 | 94,019 | 99,295 |
Agricultural and agricultural real estate mortgages | 105,211 | 107,195 | 108,246 | 109,035 | 110,815 |
Consumer | 1,458,108 | 1,436,382 | 1,447,918 | 1,435,643 | 1,387,221 |
Home equity | 555,013 | 569,596 | 581,127 | 589,391 | 601,809 |
Total loans | $ 5,623,023 | $ 5,595,271 | $ 5,587,091 | $ 5,574,488 | $ 5,482,025 |
CONTACT:Martin A. Dietrich , CEOMichael J. Chewens , CFONBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6119