Printer Friendly Version View printer-friendly version | E-mail Alerts Receive E-mail Alerts

NBT Bancorp Inc. Announces Net Income of $21.4 Million; Declares Cash Dividend

07/24/17

NORWICH, N.Y, July 24, 2017 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the three months ended June 30, 2017 was $21.4 million, up from $20.3 million for the first quarter of 2017, and up from $19.9 million for the second quarter of  2016. Diluted earnings per share for the three months ended June 30, 2017 was $0.49, as compared with $0.46 for the prior quarter, and $0.46 per share for the second quarter of 2016. 

Net income for the six months ended June 30, 2017 was $41.6 million, up from $38.8 million for the same period last year. Reported diluted earnings per share for the six months ended June 30, 2017 was $0.95, as compared with $0.89 for the same period in 2016.

2017 Second Quarter Highlights:

  • Quarter to date earnings per share up 6.5% from prior year and on a linked quarter basis

  • Net income up 5.3% from the first quarter of 2017 and up 7.3% from the second quarter of 2016
     
  • Year to date annualized loan growth was 5.5%
     
  • Average demand deposits for the six months ended June 30, 2017 were up 9.5% from the same period in 2016

“Quarter-over quarter and year-over-year increases in net income and earnings per share demonstrate the strong efforts of our team of professionals to develop relationships that drive growth in loans, demand deposits and noninterest income,” said NBT President and CEO John H. Watt, Jr. “For 10 years NBT has been engaged in technology enabled point of sale consumer lending. The launch of our solar loan program with Sungage Financial, Inc. announced earlier this month leverages our experience partnering with fintech companies to offer affordable and responsible loans to consumers and at the same time further diversify our delivery channels and the risk on our balance sheet.”

Net interest income was $69.6 million for the second quarter of 2017, up $1.1 million, or 1.6%, from the previous quarter. Fully taxable equivalent (“FTE”) net interest margin was 3.44% for the three months ended June 30, 2017 down from 3.46% for the previous quarter. The yield on average earning assets was consistent with the prior quarter at 3.75%, while the cost of interest bearing liabilities increased two basis points (“bps”) to 0.44%. Average interest earning assets were up $82.7 million, or 1.0%, as compared to the prior quarter, primarily driven by an $83.0 million increase in loans and a $4.7 million increase in securities.

Net interest income was $69.6 million, up $3.8 million, or 5.8%, from the second quarter of 2016. FTE net interest margin of 3.44% was consistent with the second quarter of 2016 as the improvement in asset yields were offset by the increase in cost of interest bearing liabilities. Average interest earning assets were up $438.3 million, or 5.6%, from the same period in 2016, which was primarily driven by a $286.4 million increase in loans and a $151.3 million increase in securities. 

Net interest income for the first six months of 2017 was $138.1 million up $7.8 million, or 6.0%, from the same period in 2016. FTE net interest margin of 3.45% for the six months ended June 30, 2017, was down from 3.46% for the same period in 2016. Average interest earning assets were up $498.7 million, or 6.5%, for the six months ended June 30, 2017, as compared to the same period in 2016, which was primarily driven by a $306.9 million increase in loans and a $184.8 million increase in securities. Interest income increased $9.0 million due to the increase in earning assets combined with a one bp improvement in asset yields. Interest expense was up $1.2 million, or 11.3%, for the six months ended June 30, 2017 as compared to the same period in 2016 and resulted primarily from increased interest rates and the average balance of interest bearing liabilities.

Noninterest income for the three months ended June 30, 2017 was $30.3 million, up $1.6 million, or 5.4%, from the prior quarter, and up $0.7 million, or 2.3%, from the second quarter of 2016. The increases in noninterest income from the prior quarter and the same quarter of the prior year were primarily driven by higher retirement plan administration, trust, and ATM and debit card fees that were offset by lower insurance and other financial services revenue during the second quarter of 2017. Retirement plan administration fees increased in the second quarter of 2017 as compared to the prior quarter and the same quarter of the prior year due primarily to acquisitions completed in 2016 and the acquisition of Downeast Pension Services (“DPS”) in the second quarter of 2017. ATM and debit card fees increased from the prior quarters due to higher number of accounts and usage. Insurance revenue decreased from the prior quarter due to seasonality increases typically seen in the first quarter. Other noninterest income decreased from the same quarter of the prior year due to a non-recurring gain recognized in the second quarter of 2016.

Noninterest income for the six months ended June 30, 2017 was $59.1 million, up $1.1 million, or 1.9%, from the same period of 2016. The increase in noninterest income from the prior year was primarily driven by higher retirement plan administration, trust, and ATM and debit card fees that were offset by lower other noninterest income during the first six months of 2017 as compared to the same period in 2016. Retirement plan administration fees increased in 2017 as compared to the prior year due primarily to acquisitions completed in 2016 and the acquisition of DPS in the second quarter of 2017. ATM and debit card fees increased from the prior year due to higher number of accounts and usage in 2017 as compared to 2016. Other noninterest income decreased from the prior year due to a non-recurring gain recognized in the second quarter of 2016.

Noninterest expense for the three months ended June 30, 2017 was $60.3 million, down $1.0 million, or 1.6%, from the prior quarter, and down $0.1 million, or 0.2%, from the second quarter of 2016. The decrease from the prior quarter was primarily driven by decreases in occupancy expense due to seasonal expenses, salaries and employee benefits due to the timing of incentive and equity-based compensation that were offset by higher professional fees and outside services and other expenses due to timing.

Noninterest expense for the six months ended June 30, 2017 was $121.6 million, up $2.9 million, or 2.5%, from the same period of 2016. The increase from the prior year was primarily due to higher salaries and employee benefits, occupancy and equipment expenses in the first half of 2017 as compared to the same period of 2016.

In the first quarter of 2017, NBT adopted new accounting guidance for equity-based transactions requiring that all excess tax benefits and tax deficiencies associated with equity-based compensation be recognized as an income tax benefit or expense in the income statement. Previously, tax effects resulting from changes in NBT’s share price subsequent to the grant date were recorded through stockholders’ equity at the time of vesting or exercise. The adoption of the accounting guidance resulted in $1.4 million and $0.1 million income tax benefit, in the first and second quarters of 2017, respectively. The year to date impact to diluted earnings per share was $0.03 of earnings per share.

Income tax expense for the three months ended June 30, 2017 was $10.7 million, up $2.4 million, or 28.6%, from the prior quarter, and up $0.4 million, or 4.1%, from the second quarter of 2016. The effective tax rate of 33.3% for the second quarter of 2017 was up from 29.0% for the first quarter of 2017 and down from 34.0% for the second quarter of 2016. The increase from the prior quarter was primarily due to a decrease of $1.4 million in the income tax benefit related to the adoption of new accounting guidance in 2017 and a higher level of taxable income in the three months ended June 30, 2017 than the three months ended March 31, 2017. Excluding the tax benefit of the new accounting guidance the effective tax rate was 33.6% and 34.3% for the first and second quarters of 2017, respectively. The decrease in the effective tax rate from the second quarter of 2016 is due to a higher level of non-taxable income as a percentage of pre-tax income in the second quarter of 2017 as compared to the same quarter in the prior year.

Income tax expense for the six months ended June 30, 2017 was $19.0 million, down $1.0 million, or 5.0%, from the same period of 2016. The effective tax rate of 31.3% for the first six months of 2017 was down from 34.0% for the same period in the prior year. The decrease from the prior year was primarily due to the $1.5 million income tax benefit related to the adoption of new accounting guidance in 2017 offset by a higher level of taxable income in the first half of 2017 compared to the same period in 2016. Excluding the tax benefit of the new accounting guidance the effective tax rate was 33.9% for the first half of 2017.

Asset Quality

Net charge-offs were $6.7 million for the three months ended June 30, 2017, as compared to $6.9 million for the prior quarter, and $4.5 million for the second quarter of 2016. Provision expense was $7.6 million for the three months ended June 30, 2017, as compared with $7.4 million for the prior quarter, and $4.8 million for the second quarter of 2016. Annualized net charge-offs to average loans for the second quarter of 2017 was 0.42%, compared with 0.45% for the first quarter of 2017 and 0.30% for the second quarter of 2016.

Net charge-offs were $13.5 million for the six months ended June 30, 2017, as compared to $9.3 million for the same period of 2016. Provision expense was $14.9 million for the six months ended June 30, 2017, as compared with $10.9 million for same period of 2016. Annualized net charge-offs to average loans for the first six months of 2017 was 0.44% compared with 0.32% for the first six months of 2016.

Nonperforming loans to total loans was 0.50% at June 30, 2017, down 6 bps from 0.56% for the prior quarter, and down 15 bps from 0.65% at June 30, 2016. Past due loans as a percentage of total loans were 0.59% at June 30, 2017, as compared to 0.54% at March 31, 2017 and 0.60% at June 30, 2016.   

The allowance for loan losses totaled $66.6 million at June 30, 2017, compared to $65.7 million at March 31, 2017, and $64.6 million at June 30, 2016. The allowance for loan losses as a percentage of loans was 1.05% (1.13% excluding acquired loans) at June 30, 2017, compared to 1.05% (1.13% excluding acquired loans) at March 31, 2017 and 1.07% (1.16% excluding acquired loans) at June 30, 2016.

Balance Sheet

Total assets were $9.1 billion at June 30, 2017, up $209.2 million, or 2.4% from December 31, 2016. Loans were $6.4 billion at June 30, 2017, up $169.9 million, or 2.7%, from December 31, 2016. Total deposits were $7.0 billion at June 30, 2017, up $41.6 million, or 0.6%, from December 31, 2016. Stockholders’ equity was $940.4 million, representing a total equity-to-total assets ratio of 10.36% at June 30, 2017, compared with $913.3 million or a total equity-to-total assets ratio of 10.30% at December 31, 2016.

Stock Repurchase Program

The Company did not purchase shares of its common stock during the three or six months ended June 30, 2017. As of June 30, 2017, there were 1,000,000 shares available for repurchase under a plan authorized on March 28, 2016, which expires on December 31, 2017.

Dividend

The NBT Board of Directors approved a 2017 third-quarter cash dividend of $0.23 per share at a meeting held today. The dividend will be paid on September 15, 2017 to shareholders of record as of September 1, 2017.
  
Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.1 billion at June 30, 2017. 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, 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, 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)            
             
    2017     2016    
Profitability: 2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Diluted Earnings Per Share $0.49   $0.46   $0.45   $0.46   $0.46    
Weighted Average Diluted Common Shares Outstanding   43,901,207     43,883,471     43,703,122     43,562,489     43,453,674    
Return on Average Assets (1)   0.95%     0.92%     0.89%     0.92%     0.94%    
Return on Average Equity (1)   9.11%     8.94%     8.54%     8.80%     9.00%    
Return on Average Tangible Common Equity (1)(3)   13.46%     13.24%     12.68%     13.16%     13.54%    
Net Interest Margin (1)(2)   3.44%     3.46%     3.41%     3.40%     3.44%    
             
  6 Months ended June 30,      
Profitability:   2017     2016        
Diluted Earnings Per Share $0.95   $0.89        
Weighted Average Diluted Common Shares Outstanding   43,886,536     43,583,837        
Return on Average Assets (1)   0.94%     0.93%        
Return on Average Equity (1)   9.02%     8.81%        
Return on Average Tangible Common Equity (1)(4)   13.36%     13.35%        
Net Interest Margin (1)(2)   3.45%     3.46%        
             
(1) Annualized.            
(2) Calculated on a 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:  
                                 
             
    2017     2016    
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Net Income $    21,359   $   20,279   $   19,608   $   20,001   $   19,909    
Amortization of intangible assets (net of tax)     642       597       582       582       567    
Net income, excluding intangibles amortization $    22,001   $   20,876   $   20,190   $   20,583   $   20,476    
             
Average stockholders' equity $    940,897   $   920,047   $   913,849   $   904,445   $   890,053    
Less: average goodwill and other intangibles     285,388       280,774       280,275       282,307       281,709    
Average tangible common equity $    655,509   $   639,273   $   633,574   $   622,138   $   608,344    
             
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:  
             
  6 Months ended June 30,      
    2017     2016        
Net Income $    41,638   $   38,800          
Amortization of intangible assets (net of tax)     1,239       1,236          
Net income, excluding intangibles amortization $    42,877   $   40,036          
             
Average stockholders' equity $    930,529   $   885,181          
Less: average goodwill and other intangibles     283,094       282,230          
Average tangible common equity $    647,435   $   602,951          
             
Note: Year-to-date 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)            
             
             
    2017     2016      
  2nd Q 1st Q 4th Q 3rd Q 2nd Q    
Balance Sheet Data:            
Securities Available for Sale $    1,365,521   $ 1,367,574   $ 1,338,290   $ 1,288,899   $ 1,271,596      
Securities Held to Maturity     515,628     515,793     527,948     485,877     500,840      
Net Loans     6,301,311     6,206,603     6,132,857     6,094,517     5,974,825      
Total Assets     9,076,418     8,945,485     8,867,268     8,773,024     8,624,780      
Total Deposits     7,015,284     7,185,051     6,973,688     6,949,238     6,740,416      
Total Borrowings     1,021,339     745,462     886,986     800,367     877,926      
Total Liabilities     8,136,057     8,018,646     7,953,952     7,863,675     7,728,427      
Stockholders' Equity     940,361     926,839     913,316     909,349     896,353      
               
Asset Quality:              
Nonaccrual Loans $    29,134   $ 32,674   $ 35,712   $ 40,716   $ 37,397      
90 Days Past Due and Still Accruing     2,849     2,392     4,810     4,444     1,613      
Total Nonperforming Loans     31,983     35,066     40,522     45,160     39,010      
Other Real Estate Owned     4,747     6,940     5,581     2,501     2,211      
Total Nonperforming Assets     36,730     42,006     46,103     47,661     41,221      
Allowance for Loan Losses     66,600     65,700     65,200     65,668     64,568      
               
Asset Quality Ratios (Total):              
Allowance for Loan Losses to Total Loans   1.05%     1.05%     1.05%     1.07%     1.07%      
Total Nonperforming Loans to Total Loans   0.50%     0.56%     0.65%     0.73%     0.65%      
Total Nonperforming Assets to Total Assets   0.40%     0.47%     0.52%     0.54%     0.48%      
Allowance for Loan Losses to Total Nonperforming Loans   208.24%     187.36%     160.90%     145.41%     165.52%      
Past Due Loans to Total Loans   0.59%     0.54%     0.64%     0.57%     0.60%      
Net Charge-Offs to Average Loans (1)   0.42%     0.45%     0.56%     0.35%     0.30%      
               
Asset Quality Ratios (Originated) (2):              
Allowance for Loan Losses to Loans   1.13%     1.13%     1.13%     1.15%     1.16%      
Nonperforming Loans to Loans   0.48%     0.53%     0.61%     0.68%     0.62%      
Allowance for Loan Losses to Nonperforming Loans   235.08%     213.71%     186.82%     168.52%     186.71%      
Past Due Loans to Loans   0.61%     0.55%     0.66%     0.56%     0.61%      
             
Capital:            
Equity to Assets   10.36%     10.36%     10.30%     10.37%     10.39%    
Book Value Per Share $    21.61   $ 21.34   $ 21.11   $ 21.08   $ 20.85    
Tangible Book Value Per Share (3) $    15.06   $ 14.88   $ 14.61   $ 14.57   $ 14.31    
Tier 1 Leverage Ratio   9.08%     9.08%     9.11%     9.05%     9.03%    
Common Equity Tier 1 Capital Ratio   9.96%     10.02%     9.98%     9.84%     9.83%      
Tier 1 Capital Ratio   11.36%     11.43%     11.42%     11.28%     11.29%    
Total Risk-Based Capital Ratio   12.32%     12.40%     12.39%     12.27%     12.29%    
Common Stock Price (End of Period) $    36.95   $ 37.07   $ 41.88   $ 32.87   $ 28.63    
             
(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)    
     
  June 30, December 31,
Assets:   2017   2016
Cash and due from banks $    155,236 $ 147,789
Short-term interest bearing accounts     8,694   1,392
Securities available for sale, at fair value     1,365,521   1,338,290
Securities held to maturity (fair value $516,656 and $525,050, respectively)     515,628   527,948
Trading securities     10,406   9,259
Federal Reserve and Federal Home Loan Bank stock     53,040   47,033
Loans     6,367,911   6,198,057
Less allowance for loan losses     66,600   65,200
Net loans   6,301,311   6,132,857
Premises and equipment, net     82,185   84,187
Goodwill     268,043   265,439
Intangible assets, net     16,904   15,815
Bank owned life insurance     170,641   168,012
Other assets     128,809   129,247
Total assets $    9,076,418 $ 8,867,268
     
Liabilities and stockholders' equity:    
Deposits:    
Demand (noninterest bearing) $    2,220,256 $ 2,195,845
Savings, negotiable order withdrawal, and money market     3,962,579   3,905,432
Time     832,449   872,411
Total deposits   7,015,284   6,973,688
Short-term borrowings     831,185   681,703
Long-term debt     88,958   104,087
Junior subordinated debt     101,196   101,196
Other liabilities     99,434   93,278
Total liabilities   8,136,057   7,953,952
     
Total stockholders' equity     940,361   913,316
     
Total liabilities and stockholders' equity $    9,076,418 $ 8,867,268
     

 

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,  
    2017   2016   2017   2016  
Interest, fee and dividend income:          
Interest and fees on loans $    65,286 $ 62,449 $    129,313 $ 123,679  
Securities available for sale   7,218   5,976     14,227   11,963  
Securities held to maturity   2,736   2,496     5,517   4,784  
Other   654   454     1,273   903  
Total interest, fee and dividend income     75,894   71,375     150,330   141,329  
Interest expense:          
Deposits   3,536   3,605     7,010   7,202  
Short-term borrowings   1,366   579     2,505   907  
Long-term debt   599   773     1,205   1,606  
Junior subordinated debt   772   641     1,498   1,260  
Total interest expense     6,273   5,598     12,218   10,975  
Net interest income     69,621   65,777     138,112   130,354  
Provision for loan losses   7,567   4,780     14,946   10,878  
Net interest income after provision for loan losses     62,054   60,997     123,166   119,476  
Noninterest income:          
Insurance and other financial services revenue   5,621   5,625     12,391   12,571  
Service charges on deposit accounts   4,161   4,166     8,138   8,105  
ATM and debit card fees   5,518   4,934     10,468   9,517  
Retirement plan administration fees   5,437   4,054     9,609   7,808  
Trust   5,161   4,937     9,693   9,313  
Bank owned life insurance income   1,218   1,271     2,629   2,562  
Net securities gains     2   1     2   30  
Other   3,186   4,626     6,124   8,075  
Total noninterest income     30,304   29,614     59,054   57,981  
Noninterest expense:          
Salaries and employee benefits   32,754   32,931     66,341   65,372  
Occupancy   5,184   5,254     11,354   10,745  
Data processing and communications   4,229   4,121     8,427   8,171  
Professional fees and outside services   3,609   3,331     6,641   6,562  
Equipment   3,793   3,547     7,491   7,007  
Office supplies and postage   1,640   1,676     3,248   3,223  
FDIC expense     1,136   1,293     2,314   2,551  
Advertising   656   595     1,046   1,099  
Amortization of intangible assets   1,039   928     2,006   2,024  
Loan collection and other real estate owned   664   845     1,943   1,550  
Other   5,617   5,924     10,792   10,365  
Total noninterest expense   60,321   60,445   121,603   118,669  
Income before income taxes   32,037   30,166   60,617   58,788  
Income tax expense   10,678   10,257     18,979   19,988  
Net income $    21,359 $ 19,909 $    41,638 $ 38,800  
Earnings Per Share:          
Basic $    0.49 $ 0.46 $    0.96 $ 0.90  
Diluted $    0.49 $ 0.46 $    0.95 $ 0.89  
           


NBT Bancorp Inc. and Subsidiaries          
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)            
               
    2017   2016
  2nd Q 1st Q 4th Q 3rd Q 2nd Q
Interest, fee and dividend income:          
Interest and fees on loans $   65,286 $ 64,027 $ 63,901   $ 63,414 $ 62,449
Securities available for sale     7,218   7,009   6,057     6,013   5,976
Securities held to maturity     2,736   2,781   2,524     2,544   2,496
Other     654   619   627     538   454
Total interest, fee and dividend income   75,894   74,436   73,109     72,509   71,375
Interest expense:          
Deposits     3,536   3,474   3,557     3,607   3,605
Short-term borrowings     1,366   1,139   641     761   579
Long-term debt     599   606   779     819   773
Junior subordinated debt     772   726   707     660   641
Total interest expense   6,273   5,945   5,684     5,847   5,598
Net interest income   69,621   68,491   67,425     66,662   65,777
Provision for loan losses     7,567   7,379   8,165     6,388   4,780
Net interest income after provision for loan losses   62,054   61,112   59,260     60,274   60,997
Noninterest income:          
Insurance and other financial services revenue     5,621   6,770   5,711     6,114   5,625
Service charges on deposit accounts     4,161   3,977   4,270     4,354   4,166
ATM and debit card fees     5,518   4,950   4,868     5,063   4,934
Retirement plan administration fees     5,437   4,172   4,126     4,129   4,054
Trust     5,161   4,532   4,717     4,535   4,937
Bank owned life insurance income     1,218   1,411   1,297     1,336   1,271
Net securities gains (losses)     2   -   (674 )   -   1
Other     3,186   2,938   3,773     4,113   4,626
Total noninterest income   30,304   28,750   28,088     29,644   29,614
Noninterest expense:          
Salaries and employee benefits     32,754   33,587   31,547     32,783   32,931
Occupancy     5,184   6,170   5,160     5,035   5,254
Data processing and communications     4,229   4,198   4,141     4,183   4,121
Professional fees and outside services     3,609   3,032   3,712     3,343   3,331
Equipment     3,793   3,698   3,632     3,656   3,547
Office supplies and postage     1,640   1,608   1,507     1,438   1,676
FDIC expense     1,136   1,178   1,273     1,287   1,293
Advertising     656   390   823     634   595
Amortization of intangible assets     1,039   967   952     952   928
Loan collection and other real estate owned     664   1,279   923     985   845
Other     5,617   5,175   3,969     5,318   5,924
Total noninterest expense   60,321   61,282   57,639     59,614   60,445
Income before income taxes   32,037   28,580   29,709     30,304   30,166
Income tax expense     10,678   8,301   10,101     10,303   10,257
Net income $   21,359 $ 20,279 $ 19,608   $ 20,001 $ 19,909
Earnings Per Share:          
Basic $   0.49 $ 0.47 $ 0.45   $ 0.46 $ 0.46
Diluted $   0.49 $ 0.46 $ 0.45   $ 0.46 $ 0.46
           
Note:  Year-to-date 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
 
Three Months ended,  Q2 - 2017 Q1 - 2017 Q4 - 2016 Q3 - 2016 Q2 - 2016  
Assets:                      
Short-term interest bearing accounts $    9,497 1.82 % $ 14,342 1.33 % $ 14,190 0.64 % $ 21,279 0.54 % $ 16,063 0.53 %  
Securities available for sale (1)     1,363,314 2.15 %   1,352,219 2.14 %   1,277,931 1.92 %   1,257,335 1.93 %   1,227,367 1.99 %  
Securities held to maturity (1)     513,888 2.63 %   520,283 2.66 %   492,415 2.54 %   494,400 2.54 %   498,493 2.49 %  
Investment in FRB and FHLB Banks     46,132 5.31 %   46,326 5.01 %   39,448 6.09 %   43,552 4.65 %   38,939 4.47 %  
Loans (2)     6,294,056 4.17 %   6,211,058 4.19 %   6,155,985 4.14 %   6,092,371 4.15 %   6,007,677 4.19 %  
Total interest earning assets $   8,226,887 3.75 % $ 8,144,228 3.75 % $ 7,979,969 3.69 % $ 7,908,937 3.69 % $ 7,788,539 3.73 %  
Other assets     753,383     748,476     760,563     754,813     747,074    
Total assets $   8,980,270   $ 8,892,704   $ 8,740,532   $ 8,663,750   $ 8,535,613    
                       
Liabilities and stockholders' equity:                      
Money market deposit accounts $ 1,723,594 0.21 % $ 1,688,060 0.21 % $ 1,674,119 0.21 % $ 1,636,815 0.22 % $ 1,709,644 0.22 %  
Negotiable order withdrawal deposit accounts     1,138,237 0.08 %   1,143,231 0.06 %   1,130,578 0.05 %   1,053,590 0.05 %   1,073,881 0.05 %  
Savings deposits     1,232,301 0.06 %   1,176,224 0.05 %   1,145,352 0.06 %   1,146,013 0.06 %   1,143,654 0.06 %  
Time deposits     824,398 1.08 %   847,410 1.07 %   890,506 1.06 %   902,185 1.07 %   906,250 1.06 %  
Total interest bearing deposits $   4,918,530 0.29 % $ 4,854,925 0.29 % $ 4,840,555 0.29 % $ 4,738,603 0.30 % $ 4,833,429 0.30 %  
Short-term borrowings     643,971 0.85 %   657,442 0.70 %   523,708 0.49 %   611,339 0.50 %   484,590 0.48 %  
Long-term debt     99,865 2.41 %   104,048 2.36 %   109,656 2.83 %   110,703 2.94 %   124,851 2.55 %  
Junior subordinated debt     101,196 3.06 %   101,196 2.91 %   101,196 2.78 %   101,196 2.59 %   101,196 2.49 %  
Total interest bearing liabilities $   5,763,562 0.44 % $ 5,717,611 0.42 % $ 5,575,115 0.41 % $ 5,561,841 0.42 % $ 5,544,066 0.41 %  
Demand deposits     2,181,952     2,159,893     2,136,310     2,079,266     1,994,601    
Other liabilities     93,859     95,153     115,258     118,198     106,893    
Stockholders' equity     940,897     920,047     913,849     904,445     890,053    
Total liabilities and stockholders' equity $   8,980,270   $ 8,892,704   $ 8,740,532   $ 8,663,750   $ 8,535,613    
                       
Interest rate spread   3.31 %   3.33 %   3.29 %   3.27 %   3.32 %  
Net interest margin   3.44 %   3.46 %   3.41 %   3.40 %   3.44 %  
                       
(1) Securities are shown at average amortized cost.
 
(2) 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 FTE 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   
Six Months ended June 30,    2017     2016    
Assets:              
Short-term interest bearing accounts $    11,906 $    90 1.52 % $ 14,851 $ 43 0.58 %  
Securities available for sale (1)(2)     1,357,797     14,442 2.14 %   1,207,902   12,174 2.03 %  
Securities held to maturity (1)     517,068     6,782 2.64 %   482,204   5,953 2.48 %  
Investment in FRB and FHLB Banks     46,228     1,183 5.16 %   36,205   860 4.78 %  
Loans (3)     6,252,786     129,725 4.18 %   5,945,875   124,028 4.19 %  
Total interest earning assets $    8,185,785 $    152,222 3.75 %   7,687,037 $ 143,058 3.74 %  
Other assets     750,943       723,134      
Total assets $    8,936,728     $ 8,410,171      
               
Liabilities and stockholders' equity:              
Money market deposit accounts $    1,705,925 $    1,814 0.21 % $ 1,681,787 $ 1,832 0.22 %  
Negotiable order withdrawal deposit accounts     1,140,720     410 0.07 %   1,062,920   266 0.05 %  
Savings deposits     1,204,418     329 0.06 %   1,124,567   322 0.06 %  
Time deposits     835,840     4,457 1.08 %   914,002   4,782 1.05 %  
Total interest bearing deposits $    4,886,903 $    7,010 0.29 % $ 4,783,276 $ 7,202 0.30 %  
Short-term borrowings     650,669     2,505 0.78 %   427,016   907 0.43 %  
Long-term debt     101,945     1,205 2.38 %   127,636   1,606 2.53 %  
Junior subordinated debt     101,196     1,498 2.99 %   101,196   1,260 2.50 %  
Total interest bearing liabilities $    5,740,713 $    12,218 0.43 % $ 5,439,124 $ 10,975 0.41 %  
Demand deposits     2,170,983       1,982,458      
Other liabilities     94,503       103,408      
Stockholders' equity     930,529       885,181      
Total liabilities and stockholders' equity $    8,936,728     $ 8,410,171      
Net interest income (FTE)       140,004       132,083    
Interest rate spread     3.32 %     3.33 %  
Net interest margin     3.45 %     3.46 %  
Taxable equivalent adjustment       1,892       1,729    
Net interest income   $    138,112     $ 130,354    
               
(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 FTE basis using the statutory Federal income tax rate of 35%.  
               

 

NBT Bancorp Inc. and Subsidiaries          
CONSOLIDATED LOAN BALANCES
(unaudited, dollars in thousands)          
           
           
    2017   2016
  2nd Q 1st Q 4th Q 3rd Q 2nd Q
Residential real estate mortgages $    1,275,807 $    1,275,774 $ 1,262,614 $ 1,240,337 $ 1,219,388
Commercial     1,342,334     1,284,464   1,242,701   1,252,644   1,176,008
Commercial real estate     1,563,980     1,540,472   1,543,301   1,528,498   1,497,683
Consumer     1,684,936     1,669,369   1,641,657   1,625,294   1,629,836
Home equity     500,854     502,224   507,784   513,412   516,478
Total loans $    6,367,911 $    6,272,303 $ 6,198,057 $ 6,160,185 $ 6,039,393
           


Contact:
John H. Watt Jr., President and CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.52 South Broad StreetNorwich, NY 13815
607-337-6119

NBT Bancorp Inc.
Copyright © 2017 - NBT Bancorp All Right Reserved.