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NBT Bancorp Inc. Announces Net Income of $20.0 Million for the Third Quarter of 2016; Declares Cash Dividend

10/24/16

NORWICH, N.Y., Oct. 24, 2016 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the three months ended September 30, 2016 was $20.0 million, up from $19.9 million for the second quarter of 2016 and the third quarter of 2015.  Diluted earnings per share for the three months ended September 30, 2016 was $0.46, as compared with $0.46 for the prior quarter and $0.45 for the third quarter of 2015.

Net income for the nine months ended September 30, 2016 was $58.8 million, up from $57.3 million for the same period last year.  Diluted earnings per share for the nine months ended September 30, 2016 was $1.35, as compared with $1.29 for the same period in 2015.

Third Quarter 2016 Highlights:

  • Year to date loan growth was 6.3% (annualized)
     
  • Average demand deposits for the nine months ended September 30, 2016 were up 10.3% from the same period in 2015

"Our performance through the third quarter of 2016 remained strong," said NBT Chairman, President and CEO Martin Dietrich. "We continue to focus on the fundamentals of banking, providing our customers with products and services that meet their needs in a responsible manner.  We continue to experience good growth across all our major markets, with our New England franchise showing the strongest growth.  We also expanded our financial services offerings in August with the acquisition of Actuarial Designs & Solutions, Inc. (“ADS”) a retirement plan services company in Scarborough, Maine; this addition also enhances our growing presence in New England."

Net interest income was $66.7 million for the third quarter of 2016, up $0.9 million, or 1.3%, from the previous quarter and up $2.4 million, or 3.8%, from the third quarter of 2015.  Fully taxable equivalent (“FTE”) net interest margin was 3.40% for the three months ended September 30, 2016, down from 3.44% for the previous quarter and down from 3.48% for the third quarter of 2015.  Average interest earning assets were up $120.4 million, or 1.5%, for the third quarter of 2016 as compared to the prior quarter and up $499.7 million, or 6.7%, from the same period in 2015.  The increases from the second quarter of 2016 and the third quarter of 2015 were driven primarily by loan production. Annualized loan growth of 8.0% during the third quarter of 2016 was driven by growth in the commercial loan portfolio.  Yields on earning assets decreased by 4 basis points (“bps”) from 3.73% during the second quarter of 2016 to 3.69% for the third quarter of 2016.  Average interest bearing liabilities increased $17.8 million, or 0.3%, from the second quarter of 2016 to the third quarter of 2016, which was driven by a $126.7 million, or 26.2%, increase in short-term borrowings, partially offset by a 2.0% decrease in interest bearing deposits as a result of normal seasonal deposit flows.  The rate paid on interest bearing liabilities of 0.42% during the third quarter of 2016 increased 1 bp from the second quarter of 2016 and increased by 2 bps from the 0.40% paid during the third quarter of 2015 due primarily to an increase in borrowing costs.

Net interest income was $197.0 million for the nine months ended September 30, 2016, up $7.9 million, or 4.2%, from the same period in 2015.  FTE net interest margin was 3.44% for the nine months ended September 30, 2016, down from 3.53% for the nine months ended September 30, 2015.  Average interest earning assets were up $507.0 million, or 7.0%, for the nine months ended September 30, 2016 as compared to the same period in 2015.  This increase from last year was driven primarily by 6.3% annualized loan growth during the first nine months of 2016.  The increase in average interest earning assets was partly offset by a decrease in yields on earning assets from 3.81% during the first nine months of 2015 to 3.73% for the first nine months of 2016.  The decreasing earning asset yield was driven by an 8 bp decrease in loan yields from the first nine months of 2015 to the first nine months of 2016.  Average interest bearing liabilities increased $325.7 million, or 6.3%, from the nine months ended September 30, 2015 to the nine months ended September 30, 2016.  Total average deposits increased $375.4 million, or 5.9%, for the nine months ended September 30, 2016 as compared to the same period last year driven primarily by growth in non-interest bearing demand deposits of $187.5 million, or 10.3%, combined with a $187.9 million, or 4.1%, increase in interest bearing deposits due to growth in money market deposit accounts, NOW accounts and savings accounts.  In addition, average short-term borrowings increased $146.6 million, or 42.8%, for the nine months ended September 30, 2016 as compared to the same period last year. The rates paid on interest bearing liabilities increased by 1 bp for the nine months ended September 30, 2016 to 0.41% as compared to the 0.40% paid in the same period in 2015.  This increase resulted primarily from slightly higher rates paid on short-term borrowings and a change in the mix of interest bearing deposits.  

Noninterest income for the three months ended September 30, 2016 was $29.6 million, unchanged from the prior quarter and down $1.6 million, or 5.2%, from the third quarter of 2015.  The decrease from the third quarter of 2015 was driven primarily by a decrease in other noninterest income due to the contingent gain of $4.2 million recognized in the third quarter of 2015 from the 2014 sale of Springstone LLC (“Springstone”).  This decrease was offset by increases in retirement plan administration fees, other noninterest income, ATM and debit card fees and insurance revenue.  Retirement plan administration fees were up $0.9 million, or 27.1%, for the third quarter of 2016 as compared to the third quarter of 2015 due primarily to the 2015 fourth quarter acquisition of Third Party Administrators, Inc. (“TPA, Inc.”) and the 2016 third quarter asset acquisition of ADS.  Other noninterest income was up $0.8 million, or 24.7%, primarily due to higher swap fee income in 2016 than in 2015.  

Noninterest income for the nine months ended September 30, 2016 was $87.6 million, up $1.6 million, or 1.9%, from the same period last year.  The increase from the prior year was driven primarily by increases in other noninterest income, retirement plan administration fees, ATM and debit card fees and insurance revenue. Other noninterest income was up $2.6 million, or 26.7%, for the first nine months of 2016 as compared to the first nine months of 2015 due primarily to an increase in fee income from customer interest rate swaps, an increase in mortgage banking income and a $0.8 million gain on the sale of equity investments for compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Retirement plan administration fees were up $1.9 million, or 19.2%, for the first nine months of 2016 as compared to the same period in 2015 due primarily to the 2015 fourth quarter acquisition of TPA, Inc.  ATM and debit card fees were up $0.9 million, or 6.4%, for the first nine months of 2016 as compared to the same period last year due primarily to increases in debit card activity and the number of accounts.  The increases were offset by the above mentioned $4.2 million Springstone gain in 2015.

Noninterest expense for the three months ended September 30, 2016 was $59.6 million, down $0.8 million or 1.4%, from the prior quarter and down $0.3 million, or 0.5%, from the third quarter of 2015.  The decrease from the prior quarter was due primarily to a decrease of $0.6 million, or 10.2% in other operating expenses. Salaries and employee benefits increased $2.6 million, or 8.5%, from the third quarter of 2015 to the third quarter of 2016 due primarily to the above mentioned TPA acquisition and higher incentive compensation in 2016 as compared to 2015.  The increase was offset by a $3.1 million, or 36.9%, decrease in other operating expenses in the third quarter of 2016 as compared to the third quarter of 2015 primarily due to a reduction in reorganization expenses incurred during the third quarter of 2015.  Income tax expense for the three month period ended September 30, 2016 was $10.3 million, consistent with the prior quarter and down $0.5 million, or 4.6%, from the third quarter of 2015.  The effective tax rate of 34.0% for the third quarter of 2016 was consistent with the prior quarter and down from 35.2% for the third quarter of 2015.

Noninterest expense for the nine months ended September 30, 2016 was $178.3 million, up $2.7 million, or 1.6%, from the same period in 2015.  The increase is due primarily to a rise in salaries and benefits expense of $6.9 million, or 7.6%.  This rise in salaries and medical insurance costs offset by lower pension credit and contract termination costs drove the increase in noninterest expense.  Other noninterest expense decreased by $3.5 million, or 18.4%, primarily due to reorganization expenses incurred during the third quarter of 2015.  Income tax expense for the nine month period ended September 30, 2016 was $30.3 million, up $0.5 million, or 1.8%, from the nine month period ended September 30, 2015.  The effective tax rate was 34.0% for the first nine months of 2016 down from 34.2% for the first nine months of 2015.

Asset Quality

Net charge-offs were $5.3 million for the three months ended September 30, 2016, up from $4.5 million for the prior quarter and up slightly from $5.1 million for the third quarter of 2015.  Provision expense was $6.4 million for the three months ended September 30, 2016, as compared with $4.8 million for the prior quarter and $5.0 million for the third quarter of 2015; the increases in provision expense were primarily due to loan growth.  Annualized net charge-offs to average loans for the third quarter of 2016 was 0.35%, compared with 0.30% for the second quarter of 2016 and 0.35% for the third quarter of 2015. Annualized net charge-offs to average loans for the first nine months of 2016 was 0.33%, consistent with the same period of 2015 and down from 0.38% for the year ended December 31, 2015.

Nonperforming loans to total loans was 0.73% at September 30, 2016, up 9 bps from December 31, 2015 and down 6 bps from September 30, 2015.  Past due loans as a percentage of total loans were 0.57% at September 30, 2016, as compared to 0.62% at December 31, 2015 and 0.63% as of September 30, 2015.

The allowance for loan losses totaled $65.7 million at September 30, 2016, compared to $63.0 million at December 31, 2015 and $64.9 million at September 30, 2015.  The allowance for loan losses as a percentage of loans was 1.07% (1.15% excluding acquired loans with no related allowance recorded) at September 30, 2016, compared to 1.07% (1.18% excluding acquired loans with no related allowance recorded) at December 31, 2015 and 1.10% (1.21% excluding acquired loans with no related allowance recorded) at September 30, 2015.  The decrease in the allowance for loan losses as a percentage of loans from the prior year was due primarily to continued positive trends in asset quality metrics of the originated loan portfolio.

Balance Sheet

Total assets were $8.8 billion at September 30, 2016, up $510.4 million, or 6.2%, from December 31, 2015.  Net loans were $6.1 billion at September 30, 2016, up $274.4 million, or 4.7%, from December 31, 2015.  Total deposits were $6.9 billion at September 30, 2016, up $344.4 million, or 5.2%, from December 31, 2015.  Stockholders’ equity was $909.3 million, representing a total equity-to-total assets ratio of 10.37% at September 30, 2016, compared with $882.0 million or a total equity-to-total assets ratio of 10.67% at December 31, 2015.

Stock Repurchase Program

The Company purchased 675,535 shares of its common stock during the nine months ended September 30, 2016 at an average price of $25.45 per share under a previously announced plan.  As of September 30, 2016, there were 277,313 shares available for repurchase under this plan, which expires on December 31, 2016.  On March 28, 2016, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares of its outstanding common stock.  This plan expires on December 31, 2017.

Dividend

The NBT Board of Directors approved a 2016 fourth-quarter cash dividend of $0.23 per share at a meeting held today.  The dividend will be paid on December 15, 2016 to shareholders of record as of December 1, 2016.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.8 billion at September 30, 2016.  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 154 banking locations with offices in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine.  EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm.  NBT-Mang Insurance Agency, based in Norwich, N.Y., is a full-service insurance agency.  More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtmang.com.

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 Bancorp 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 that 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, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (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 the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation.  Forward-looking statements speak only as of the date they are made.  Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

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).  These measures adjust GAAP measures to exclude the effects of acquisition related intangible amortization expense on earnings and equity as well as providing a fully taxable equivalent yield on securities and loans.  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 provided useful information that is important to an understanding of the results of NBT’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 NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

NBT Bancorp Inc. and Subsidiaries            
SELECTED FINANCIAL DATA            
(unaudited, dollars in thousands except per share data)            
             
  2016
2015
 
Profitability: 3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Diluted Earnings Per Share $ 0.46   $ 0.46   $ 0.43   $ 0.43   $ 0.45    
Weighted Average Diluted            
Common Shares Outstanding   43,562,489     43,453,674     43,707,489     44,072,049     44,262,426    
Return on Average Assets (1)   0.92 %   0.94 %   0.92 %   0.93 %   0.97 %  
Return on Average Equity (1)   8.80 %   9.00 %   8.63 %   8.58 %   8.97 %  
Return on Average Tangible Common Equity (1)(3)   13.16 %   13.54 %   13.17 %   13.04 %   13.66 %  
Net Interest Margin (1)(2)   3.40 %   3.44 %   3.47 %   3.42 %   3.48 %  
             
  9 Months ended September 30,        
Profitability: 2016
2015
       
Diluted Earnings Per Share $ 1.35   $ 1.29          
Weighted Average Diluted            
Common Shares Outstanding   43,579,161     44,467,881          
Return on Average Assets (1)   0.92 %   0.96 %        
Return on Average Equity (1)   8.81 %   8.75 %        
Return on Average Tangible Common Equity (1)(4)   13.29 %   13.41 %        
Net Interest Margin (1)(2)   3.44 %   3.53 %        
             
(1) Annualized            
(2) Calculated on a Fully Taxable Equivalent ("FTE") basis          
(3) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
             
  2016
2015
 
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Net Income $ 20,001   $ 19,909   $ 18,891   $ 19,127   $ 19,851    
Amortization of intangible assets (net of tax)   582     567     670     750     712    
  $ 20,583   $ 20,476   $ 19,561   $ 19,877   $ 20,563    
             
Average stockholders' equity $ 904,445   $ 890,053   $ 880,311   $ 884,743   $ 878,305    
Less: average goodwill and other intangibles   282,307     281,709     282,751     279,904     281,048    
Average tangible common equity $ 622,138   $ 608,344   $ 597,560   $ 604,839   $ 597,257    
             
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
             
  9 Months ended September 30,        
  2016
2015
       
Net Income $ 58,801   $ 57,298          
Amortization of intangible assets (net of tax)   1,818     2,221          
  $ 60,619   $ 59,519          
             
Average stockholders' equity $ 891,650   $ 875,874          
Less: average goodwill and other intangibles   282,255     282,267          
Average tangible common equity $ 609,395   $ 593,607          
             
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.      
             

 

NBT Bancorp Inc. and Subsidiaries            
SELECTED FINANCIAL DATA            
(unaudited, dollars in thousands except per share data)            
             
             
  2016
2015
 
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Balance Sheet Data:            
Securities Available for Sale $    1,288,899   $ 1,271,596   $ 1,259,874   $ 1,174,544   $ 1,058,397    
Securities Held to Maturity     485,877     500,840     466,914     471,031     470,758    
Net Loans     6,094,517     5,974,825     5,903,491     5,820,115     5,806,129    
Total Assets     8,773,024     8,624,780     8,472,964     8,262,646     8,178,976    
Total Deposits     6,949,238     6,740,416     6,905,042     6,604,843     6,600,627    
Total Borrowings     800,367     877,926     579,441     674,124     594,163    
Total Liabilities     7,863,675     7,728,427     7,591,237     7,380,642     7,302,760    
Stockholders' Equity     909,349     896,353     881,727     882,004     876,216    
             
Asset Quality:            
Nonaccrual Loans $    40,716   $ 37,397   $ 38,944   $ 33,744   $ 42,524    
90 Days Past Due and Still Accruing     4,444     1,613     2,185     3,662     3,790    
Total Nonperforming Loans     45,160     39,010     41,129     37,406     46,314    
Other Real Estate Owned     2,501     2,211     2,716     4,666     4,855    
Total Nonperforming Assets     47,661     41,221     43,845     42,072     51,169    
Allowance for Loan Losses     65,668     64,568     64,318     63,018     64,859    
             
Asset Quality Ratios (Total):            
Allowance for Loan Losses to Total Loans   1.07 %   1.07 %   1.08 %   1.07 %   1.10 %  
Total Nonperforming Loans to Total Loans   0.73 %   0.65 %   0.69 %   0.64 %   0.79 %  
Total Nonperforming Assets to Total Assets   0.54 %   0.48 %   0.52 %   0.51 %   0.63 %  
Allowance for Loan Losses to Total Nonperforming Loans   145.41 %   165.52 %   156.38 %   168.47 %   140.04 %  
Past Due Loans to Total Loans   0.57 %   0.60 %   0.50 %   0.62 %   0.63 %  
Net Charge-Offs to Average Loans (1)   0.35 %   0.30 %   0.33 %   0.51 %   0.35 %  
             
Asset Quality Ratios (Originated) (2):            
Allowance for Loan Losses to Loans   1.15 %   1.16 %   1.18 %   1.18 %   1.21 %  
Nonperforming Loans to Loans   0.68 %   0.62 %   0.67 %   0.61 %   0.63 %  
Allowance for Loan Losses to Nonperforming Loans   168.52 %   186.71 %   175.40 %   193.00 %   192.49 %  
Past Due Loans to Loans   0.56 %   0.61 %   0.51 %   0.64 %   0.67 %  
             
Capital:            
Equity to Assets   10.37 %   10.39 %   10.41 %   10.67 %   10.71 %  
Book Value Per Share $    21.08   $ 20.85   $ 20.57   $ 20.31   $ 20.29    
Tangible Book Value Per Share (3) $    14.57   $ 14.31   $ 13.99   $ 13.79   $ 13.80    
Tier 1 Leverage Ratio   9.05 %   9.03 %   9.15 %   9.44 %   9.34 %  
Common Equity Tier 1 Capital Ratio   9.84 %   9.83 %   9.79 %   10.20 %   10.04 %  
Tier 1 Capital Ratio   11.28 %   11.29 %   11.28 %   11.73 %   11.57 %  
Total Risk-Based Capital Ratio   12.27 %   12.29 %   12.29 %   12.74 %   12.62 %  
Common Stock Price (End of Period) $    32.87   $ 28.63   $ 26.95   $ 27.88   $ 26.94    
             
(1)  Annualized            
(2)  Non-GAAP measure - Excludes acquired loans            
(3)  Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding  
             

 

NBT Bancorp Inc. and Subsidiaries       
CONSOLIDATED BALANCE SHEETS      
(unaudited, dollars in thousands)      
       
    September 30,   December 31,
ASSETS   2016   2015
Cash and due from banks   $    167,138     $ 130,593  
Short term interest bearing accounts       21,299       9,704  
Securities available for sale, at fair value       1,288,899       1,174,544  
Securities held to maturity (fair value of $495,596 and $473,140 at       485,877       471,031  
September 30, 2016 and December 31, 2015, respectively)      
Trading securities       8,852       8,377  
Federal Reserve and Federal Home Loan Bank stock       42,318       36,673  
Loans       6,160,185       5,883,133  
Less allowance for loan losses       65,668       63,018  
Net loans     6,094,517       5,820,115  
Premises and equipment, net       84,153       88,826  
Goodwill       264,689       265,957  
Intangible assets, net       15,899       17,265  
Bank owned life insurance       164,464       117,044  
Other assets       134,919       122,517  
TOTAL ASSETS   $    8,773,024     $ 8,262,646  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Deposits:      
Demand (noninterest bearing)   $    2,146,229     $ 1,998,165  
Savings, NOW, and money market       3,921,922       3,697,851  
Time       881,087       908,827  
Total deposits     6,949,238       6,604,843  
Short-term borrowings       585,027       442,481  
Long-term debt       114,144       130,447  
Junior subordinated debt       101,196       101,196  
Other liabilities       114,070       101,675  
Total liabilities     7,863,675       7,380,642  
       
Total stockholders' equity       909,349       882,004  
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $    8,773,024     $ 8,262,646  
       

 

NBT Bancorp Inc. and Subsidiaries             
CONSOLIDATED STATEMENTS OF INCOME  
(unaudited, dollars in thousands except per share data)          
             
  Three Months Ended   Nine Months Ended  
  September 30,   September 30,  
  2016 2015   2016 2015  
Interest, fee and dividend income:                            
Loans $    63,414   $ 61,656     $    187,093   $ 181,047    
Securities available for sale   6,013     5,125         17,976     15,214    
Securities held to maturity   2,544     2,318         7,328     6,916    
Other   538     401         1,441     1,276    
Total interest, fee and dividend income     72,509     69,500         213,838     204,453    
Interest expense:            
Deposits   3,607     3,554         10,809     10,644    
Short-term borrowings   761     296         1,668     561    
Long-term debt   819     845         2,425     2,507    
Junior subordinated debt   660     560         1,920     1,645    
Total interest expense     5,847     5,255         16,822     15,357    
Net interest income     66,662     64,245         197,016     189,096    
Provision for loan losses   6,388     4,966         17,266     12,506    
Net interest income after provision for loan losses     60,274     59,279         179,750     176,590    
Noninterest income:            
Insurance and other financial services revenue   6,114     5,862         18,685     18,072    
Service charges on deposit accounts   4,354     4,349         12,459     12,706    
ATM and debit card fees   5,063     4,780         14,580     13,707    
Retirement plan administration fees   4,129     3,249         11,937     10,011    
Trust fees   4,535     4,611         13,848     14,257    
Bank owned life insurance income   1,336     931         3,898     3,418    
Net securities gains     -      3         30     43    
Gain on the sale of Springstone investment     -      4,179         -      4,179    
Other   4,113     3,297         12,188     9,617    
Total noninterest income     29,644     31,261         87,625     86,010    
Noninterest expense:            
Salaries and employee benefits   32,783     30,227         98,155     91,240    
Occupancy   5,035     5,326         15,780     16,804    
Data processing and communications   4,183     4,207         12,354     12,598    
Professional fees and outside services   3,343     3,137         9,905     10,029    
Equipment   3,656     3,352         10,663     9,917    
Office supplies and postage   1,438     1,576         4,661     4,822    
FDIC insurance     1,287     1,355         3,838     3,833    
Advertising   634     421         1,733     1,874    
Amortization of intangible assets   952     1,165         2,976     3,636    
Loan collection and other real estate owned   985     699         2,535     1,593    
Other operating   5,318     8,426         15,683     19,211    
Total noninterest expense   59,614     59,891       178,283     175,557    
Income before income taxes   30,304     30,649       89,092     87,043    
Income taxes   10,303     10,798         30,291     29,745    
Net income $    20,001   $ 19,851     $    58,801   $ 57,298    
Earnings Per Share:            
Basic $    0.46   $ 0.45     $    1.36   $ 1.30    
Diluted $    0.46   $ 0.45     $    1.35   $ 1.29    
             


NBT Bancorp Inc. and Subsidiaries          
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)        
           
  2016 2015
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Interest, fee and dividend income:          
Loans $    63,414   $ 62,449   $ 61,230   $ 60,781   $ 61,656  
Securities available for sale   6,013     5,976     5,987     5,204     5,125  
Securities held to maturity   2,544     2,496     2,288     2,317     2,318  
Other   538     454     449     469     401  
Total interest, fee and dividend income   72,509     71,375     69,954     68,771     69,500  
Interest expense:          
Deposits   3,607     3,605     3,597     3,613     3,554  
Short-term borrowings   761     579     328     222     296  
Long-term debt   819     773     833     848     845  
Junior subordinated debt   660     641     619     576     560  
Total interest expense   5,847     5,598     5,377     5,259     5,255  
Net interest income   66,662     65,777     64,577     63,512     64,245  
Provision for loan losses   6,388     4,780     6,098     5,779     4,966  
Net interest income after provision for loan losses   60,274     60,997     58,479     57,733     59,279  
Noninterest income:          
Insurance and other financial services revenue   6,114     5,625     6,946     6,139     5,862  
Service charges on deposit accounts   4,354     4,166     3,939     4,350     4,349  
ATM and debit card fees   5,063     4,934     4,583     4,541     4,780  
Retirement plan administration fees   4,129     4,054     3,754     4,135     3,249  
Trust fees   4,535     4,937     4,376     4,769     4,611  
Bank owned life insurance income   1,336     1,271     1,291     916     931  
Net securities gains     -      1     29     3,044     3  
Gain on the sale of Springstone investment     -      -     -     -     4,179  
Other   4,113     4,626     3,449     4,577     3,297  
Total noninterest income   29,644     29,614     28,367     32,471     31,261  
Noninterest expense:          
Salaries and employee benefits   32,783     32,931     32,441     33,078     30,227  
Occupancy   5,035     5,254     5,491     5,291     5,326  
Data processing and communications   4,183     4,121     4,050     3,990     4,207  
Professional fees and outside services   3,343     3,331     3,231     3,378     3,137  
Equipment   3,656     3,547     3,460     3,491     3,352  
Office supplies and postage   1,438     1,676     1,547     1,545     1,576  
FDIC insurance   1,287     1,293     1,258     1,312     1,355  
Advertising   634     595     504     780     421  
Amortization of intangible assets   952     928     1,096     1,228     1,165  
Loan collection and other real estate owned   985     845     705     1,027     699  
Other operating   5,318     5,924     4,441     5,499     8,426  
Total noninterest expense   59,614     60,445     58,224     60,619     59,891  
Income before income taxes   30,304     30,166     28,622     29,585     30,649  
Income taxes   10,303     10,257     9,731     10,458     10,798  
Net income  $    20,001   $ 19,909   $ 18,891   $ 19,127   $ 19,851  
Earnings per share:          
Basic $    0.46   $ 0.46   $ 0.44   $ 0.44   $ 0.45  
Diluted $    0.46   $ 0.46   $ 0.43   $ 0.43   $ 0.45  
           
Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.  
   


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
 
  Q3 - 2016 Q2 - 2016 Q1 - 2016 Q4 - 2015 Q3 - 2015  
ASSETS:                      
Short-term interest bearing accounts $    21,279     0.54 % $ 16,063     0.53 % $ 13,639     0.63 % $ 13,494     0.34 % $ 8,100     0.32 %  
Securities available for sale (1)(2)     1,257,335     1.93 %   1,227,367     1.99 %   1,188,437     2.06 %   1,070,643     1.97 %   1,079,206     1.92 %  
Securities held to maturity (1)     494,400     2.54 %   498,493     2.49 %   465,916     2.48 %   470,027     2.43 %   460,252     2.44 %  
Investment in FRB and FHLB Banks     43,552     4.65 %   38,939     4.47 %   33,470     5.14 %   32,263     5.63 %   37,358     4.19 %  
Loans (3)     6,092,371     4.15 %   6,007,677     4.19 %   5,884,073     4.20 %   5,872,011     4.12 %   5,824,311     4.21 %  
Total interest earning assets $   7,908,937     3.69 % $ 7,788,539     3.73 % $ 7,585,535     3.75 % $ 7,458,438     3.70 % $ 7,409,227     3.77 %  
Other assets     754,813       747,074       699,194       693,981       690,768      
Total assets $   8,663,750     $ 8,535,613     $ 8,284,729     $ 8,152,419     $ 8,099,995      
                       
LIABILITIES AND STOCKHOLDERS' EQUITY:                      
Money market deposit accounts $ 1,636,815     0.22 % $ 1,709,644     0.22 % $ 1,653,930     0.22 % $ 1,626,644     0.22 % $ 1,557,651     0.22 %  
NOW deposit accounts     1,053,590     0.05 %   1,073,881     0.05 %   1,051,959     0.05 %   1,039,563     0.05 %   963,744     0.05 %  
Savings deposits     1,146,013     0.06 %   1,143,654     0.06 %   1,105,480     0.06 %   1,079,757     0.06 %   1,085,680     0.06 %  
Time deposits     902,185     1.07 %   906,250     1.06 %   921,754     1.04 %   918,875     1.05 %   939,542     1.01 %  
Total interest bearing deposits $   4,738,603     0.30 % $ 4,833,429     0.30 % $ 4,733,123     0.31 % $ 4,664,839     0.31 % $ 4,546,617     0.31 %  
Short-term borrowings     611,339     0.50 %   484,590     0.48 %   369,443     0.36 %   332,742     0.26 %   456,663     0.26 %  
Long-term debt     110,703     2.94 %   124,851     2.55 %   130,420     2.57 %   130,522     2.58 %   130,680     2.56 %  
Junior subordinated debt     101,196     2.59 %   101,196     2.49 %   101,196     2.46 %   101,196     2.26 %   101,196     2.20 %  
Total interest bearing liabilities $   5,561,841     0.42 % $ 5,544,066     0.41 % $ 5,334,182     0.41 % $ 5,229,299     0.40 % $ 5,235,156     0.40 %  
Demand deposits     2,079,266       1,994,601       1,970,315       1,944,820       1,894,555      
Other liabilities     118,198       106,893       99,921       93,557       91,979      
Stockholders' equity     904,445       890,053       880,311       884,743       878,305      
Total liabilities and stockholders' equity $   8,663,750     $ 8,535,613     $ 8,284,729     $ 8,152,419     $ 8,099,995      
                       
Interest rate spread     3.27 %     3.32 %     3.34 %     3.30 %     3.37 %  
Net interest margin     3.40 %     3.44 %     3.47 %     3.42 %     3.48 %  
                       
(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            
Note:  Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35%      
                       

 

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   
Nine Months ended September 30,  2016 2015  
ASSETS:              
Short-term interest bearing accounts $    17,009   $    72     0.57 % $ 9,033   $ 22     0.33 %  
Securities available for sale (1)(2)     1,224,500       18,286     1.99 %   1,055,456     15,579     1.97 %  
Securities held to maturity (1)     486,299       9,111     2.50 %   456,072     8,415     2.47 %  
Investment in FRB and FHLB Banks     38,672       1,369     4.73 %   33,308     1,254     5.03 %  
Loans (3)     5,995,063       187,629     4.18 %   5,700,673     181,619     4.26 %  
Total interest earning assets $    7,761,543   $    216,467     3.73 %   7,254,542   $ 206,889     3.81 %  
Other assets     733,771         690,774        
Total assets $    8,495,314       $ 7,945,316        
               
LIABILITIES AND STOCKHOLDERS' EQUITY:              
Money market deposit accounts $    1,666,687   $    2,720     0.22 % $ 1,567,060   $ 2,462     0.21 %  
NOW deposit accounts     1,059,787       400     0.05 %   970,139     375     0.05 %  
Savings deposits     1,131,768       491     0.06 %   1,069,056     492     0.06 %  
Time deposits     910,034       7,198     1.06 %   974,110     7,315     1.00 %  
Total interest bearing deposits $    4,768,276   $    10,809     0.30 % $ 4,580,365   $ 10,644     0.31 %  
Short-term borrowings     488,906       1,668     0.46 %   342,293     561     0.22 %  
Long-term debt     121,950       2,425     2.66 %   130,767     2,507     2.56 %  
Junior subordinated debt     101,196       1,920     2.53 %   101,196     1,645     2.17 %  
Total interest bearing liabilities $    5,480,328   $    16,822     0.41 % $ 5,154,621   $ 15,357     0.40 %  
Demand deposits     2,014,963         1,827,441        
Other liabilities     108,373         87,380        
Stockholders' equity     891,650         875,874        
Total liabilities and stockholders' equity $    8,495,314       $ 7,945,316        
Net interest income (FTE)       199,645         191,532      
Interest rate spread       3.32 %       3.41 %  
Net interest margin       3.44 %       3.53 %  
Taxable equivalent adjustment       2,629         2,436      
Net interest income   $    197,016       $ 189,096      
               
(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    
Note:  Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35%  
 
               

 

NBT Bancorp Inc. and Subsidiaries          
CONSOLIDATED LOAN BALANCES
(unaudited, dollars in thousands)          
           
           
   2016   2015 
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Residential real estate mortgages $    1,240,337   $   1,219,388   $   1,211,821   $   1,196,780   $   1,177,195  
Commercial     1,252,644       1,176,008       1,168,191       1,159,089       1,167,007  
Commercial real estate     1,528,498       1,497,683       1,448,920       1,430,618       1,435,378  
Consumer     1,625,294       1,629,836       1,620,669       1,568,204       1,549,844  
Home equity     513,412       516,478       518,208       528,442       541,564  
Total loans $    6,160,185   $   6,039,393   $   5,967,809   $   5,883,133   $   5,870,988  
           

 

Contact:
Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.52 South Broad StreetNorwich, NY 13815
607-337-6119

NBT Bancorp Inc.
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