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NBT Bancorp Inc. Announces Record Net Income of $22.9 Million and Record Diluted Earnings Per Share of $0.52; Declares Cash Dividend

10/23/17

NORWICH, N.Y., Oct. 23, 2017 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported record net income and diluted earnings per share for both the three and nine months ended September 30, 2017.

Net income for the three months ended September 30, 2017 was $22.9 million, up from $21.4 million for the second quarter of 2017 and up from $20.0 million for the third quarter of 2016. Diluted earnings per share for the three months ended September 30, 2017 was $0.52, as compared with $0.49 for the prior quarter and $0.46 per share for the third quarter of 2016.

Net income for the nine months ended September 30, 2017 was $64.5 million, up 9.7% from $58.8 million for the same period last year. Reported diluted earnings per share for the nine months ended September 30, 2017 was $1.47, as compared with $1.35 for the same period in 2016.

Highlights:

  • Quarter-to-date earnings per share up 6.1% from the prior quarter and up 13.0% from prior year
     
  • Quarter-to-date net income up 7.1% from the prior quarter and up 14.4% from the prior year
     
  • Year to date annualized loan growth of 5.8%
     
  • Average demand deposits for the nine months ended September 30, 2017 up 9.2% from the same period in 2016

“Once again, due to the efforts of a committed and aligned team of NBT professionals, we are able to deliver strong quarter-over-quarter and year-over-year increases in net income and earnings per share,” said NBT President and CEO John H. Watt, Jr. “Our team has built and sustained momentum supported by the prevailing tailwinds that have been created as a result of an improving domestic economy and higher consumer confidence.”

Net interest income was $71.9 million for the third quarter of 2017, up $2.3 million, or 3.3%, from the previous quarter. Fully taxable equivalent (“FTE”) net interest margin was 3.47% for the three months ended September 30, 2017 up from 3.44% for the previous quarter. The yield on average earning assets increased five basis points (“bps”) from the prior quarter to 3.80% and the cost of interest bearing liabilities increased three bps to 0.47% driven by seasonal deposit migration and higher interest rates on borrowings. Average interest earning assets were up $113.4 million, or 1.4%, as compared to the prior quarter, primarily driven by a $106.2 million increase in loans.

Net interest income was $71.9 million for the third quarter of 2017, up $5.3 million, or 7.9%, from the third quarter of 2016. FTE net interest margin of 3.47% was up seven bps from the third quarter of 2016 as the improvement in asset yields was partially offset by the increase in cost of interest bearing liabilities. Average interest earning assets were up $431.3 million, or 5.5%, from the same period in 2016, which was primarily driven by a $307.9 million increase in loans and a $129.3 million increase in securities.

Net interest income for the first nine months of 2017 was $210.0 million, up $13.0 million, or 6.6%, from the same period in 2016. FTE net interest margin of 3.46% for the nine months ended September 30, 2017, was up from 3.44% for the same period in 2016. Average interest earning assets were up $476.3 million, or 6.1%, for the nine months ended September 30, 2017, as compared to the same period in 2016, which was driven by a $307.4 million increase in loans and a $166.1 million increase in securities. Interest income increased $15.3 million, or 7.2% due to the increase in earning assets combined with a four bp improvement in asset yields. Interest expense was up $2.3 million, or 13.7%, for the nine months ended September 30, 2017 as compared to the same period in 2016 and resulted primarily from a three bp increase in rates driven by higher borrowing costs and increase in the average balance of interest bearing liabilities.

Noninterest income for the three months ended September 30, 2017 was $30.8 million, up $0.5 million, or 1.6%, from the prior quarter and up $1.1 million, or 3.8%, from the third quarter of 2016. The increase from the prior quarter was driven by higher other noninterest income due to higher swap fee income. The increase in noninterest income from the third quarter of 2016 was driven by higher retirement plan administration, ATM and debit card fees and trust revenue that were offset by lower insurance and other financial services revenue during the third quarter of 2017. Retirement plan administration fees increased in the third quarter of 2017 as compared to the third quarter of 2016 due primarily to 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. Trust revenue increased due to account growth. The increases were partially offset by lower insurance and other financial services revenue from the same period of 2016.

Noninterest income for the nine months ended September 30, 2017 was $89.8 million, up $2.2 million, or 2.5%, from the same period of 2016. The increase in noninterest income from the prior year was driven by higher retirement plan administration, ATM and debit card fees and trust revenue that were partially offset by lower insurance and other financial services and other noninterest income during the first nine 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. Trust revenue increased from the prior year due to account growth.

Noninterest expense for the three months ended September 30, 2017 was $60.6 million, up $0.3 million, or 0.5%, from the prior quarter and up $1.0 million, or 1.7%, from the third quarter of 2016. The increases from the prior quarter and the same quarter of the prior year were driven by increases in loan collection and other real estate owned due primarily to the write-down of a commercial property.

Noninterest expense for the nine months ended September 30, 2017 was $182.2 million, up $3.9 million, or 2.2%, from the same period of 2016. The increase from the prior year was driven by higher loan collection and other real estate owned expense due primarily to commercial property write-downs. Salaries and employee benefits, occupancy, equipment, data processing and communications and other noninterest expenses also increased in the first nine months 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 income tax benefits of $1.4 million, $0.1 million and $0.2 million, in the first, second and third quarters of 2017, respectively. The year-to-date impact to diluted earnings per share was $0.04.

Income tax expense for the three months ended September 30, 2017 was $11.3 million, up $0.7 million, or 6.2%, from the prior quarter and up $1.0 million, or 10.1%, from the third quarter of 2016. The effective tax rate of 33.1% for the third quarter of 2017 was down from 33.3% for the second quarter of 2017 and down from 34.0% for the third quarter of 2016. The increase in income tax expense from the prior quarter was due to a higher level of taxable income. The decrease in the effective tax rate from the third quarter of 2016 was due to a higher level of non-taxable income in the third quarter of 2017 as compared to the same period of the prior year. Excluding the tax benefit of the new accounting guidance, the effective tax rate was 33.6% and 33.7% for the second and third quarters of 2017, respectively.

Income tax expense for the nine months ended September 30, 2017 was $30.3 million, consistent with the same period of 2016. The effective tax rate of 32.0% for the first nine 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 $1.7 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 nine months of 2017 compared to the same period in 2016. Excluding the tax benefit of the new accounting guidance, the effective tax rate was 33.8% for the first nine months of 2017.

Asset Quality

Net charge-offs were $6.1 million for the three months ended September 30, 2017, as compared to $6.7 million for the prior quarter and $5.3 million for the third quarter of 2016. Provision expense was $7.9 million for the three months ended September 30, 2017, as compared with $7.6 million for the prior quarter and $6.4 million for the third quarter of 2016. Provision expense increased as compared to the same period of the prior year due to loan growth and higher charge-offs driven by the commercial portfolio. Annualized net charge-offs to average loans for the third quarter of 2017 was 0.38% down from 0.42% for the second quarter of 2017 and up from 0.35% for the third quarter of 2016.

Net charge-offs were $19.7 million for the nine months ended September 30, 2017, as compared to $14.6 million for the same period of 2016. Provision expense was $22.8 million for the nine months ended September 30, 2017, as compared with $17.3 million for same period of 2016. Provision expense increased as compared to the first nine months of 2016 due to loan growth and higher net charge-offs driven by the commercial portfolio. Annualized net charge-offs to average loans for the first nine months of 2017 was 0.42% compared with 0.33% for the first nine months of 2016.

Nonperforming loans to total loans was 0.42% at September 30, 2017, down eight bps from 0.50% for the prior quarter and down 31 bps from 0.73% at September 30, 2016. Past due loans as a percentage of total loans were 0.63% at September 30, 2017, as compared to 0.59% at June 30, 2017 and 0.57% at September 30, 2016.

The allowance for loan losses totaled $68.4 million at September 30, 2017, compared to $66.6 million at June 30, 2017 and $65.7 million at September 30, 2016. The allowance for loan losses as a percentage of loans was 1.06% (1.13% excluding acquired loans) at September 30, 2017, compared to 1.05% (1.13% excluding acquired loans) at June 30, 2017 and 1.07% (1.15% excluding acquired loans) at September 30, 2016.

Balance Sheet

Total assets were $9.2 billion at September 30, 2017, up $288.1 million, or 3.2%, from December 31, 2016. Loans were $6.5 billion at September 30, 2017, up $268.9 million, or 4.3%, from December 31, 2016. Total deposits were $7.2 billion at September 30, 2017, up $257.5 million, or 3.7%, from December 31, 2016. Stockholders’ equity was $955.2 million, representing a total equity-to-total assets ratio of 10.43% at September 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 nine months ended September 30, 2017. As of September 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. On October 23, 2017, 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, 2019.

Dividend

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

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.2 billion at September 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 152 banking locations 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 is available online 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 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 FTE 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.

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


 

NBT Bancorp Inc. and Subsidiaries  
SELECTED FINANCIAL DATA  
(unaudited, dollars in thousands except per share data)  
             
    2017     2016    
Profitability: 3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Diluted Earnings Per Share $    0.52   $   0.49   $   0.46   $   0.45   $   0.46    
Weighted Average Diluted Common Shares Outstanding   43,914,536     43,901,207     43,883,471     43,703,122     43,562,489    
Return on Average Assets (1)   1.00 %   0.95 %   0.92 %   0.89 %   0.92 %  
Return on Average Equity (1)   9.55 %   9.11 %   8.94 %   8.54 %   8.80 %  
Return on Average Tangible Common Equity (1)(3)   13.99 %   13.46 %   13.24 %   12.68 %   13.16 %  
Net Interest Margin (1)(2)   3.47 %   3.44 %   3.46 %   3.41 %   3.40 %  
             
  9 Months ended September 30,  
Profitability:   2017     2016    
Diluted Earnings Per Share $    1.47   $   1.35    
Weighted Average Diluted Common Shares Outstanding   43,892,221     43,579,161    
Return on Average Assets (1)   0.96 %   0.92 %  
Return on Average Equity (1)   9.20 %   8.81 %  
Return on Average Tangible Common Equity (1)(4)   13.57 %   13.29 %  
Net Interest Margin (1)(2)   3.46 %   3.44 %  
             
(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    
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Net Income $    22,876   $   21,359   $   20,279   $   19,608   $   20,001    
Amortization of intangible assets (net of tax)     613       642       597       582       582    
Net income, excluding intangibles amortization $    23,489   $   22,001   $   20,876   $   20,190   $   20,583    
             
Average stockholders' equity $    950,557   $   940,897   $   920,047   $   913,849   $   904,445    
Less: average goodwill and other intangibles     284,536       285,388       280,774       280,275       282,307    
Average tangible common equity $    666,021   $   655,509   $   639,273   $   633,574   $   622,138    
             
(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,  
    2017     2016    
Net Income $    64,514   $   58,801          
Amortization of intangible assets (net of tax)     1,852       1,818          
Net income, excluding intangibles amortization $    66,366   $   60,619          
             
Average stockholders' equity $    937,279   $   891,650          
Less: average goodwill and other intangibles     283,580       282,255          
Average tangible common equity $    653,699   $   609,395          
             
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      
  3rd Q 2nd Q 1st Q 4th Q 3rd Q    
Balance Sheet Data:            
Securities Available for Sale $    1,357,614   $   1,365,521   $   1,367,574   $   1,338,290   $   1,288,899      
Securities Held to Maturity     494,309       515,628       515,793       527,948       485,877      
Net Loans     6,398,584       6,301,311       6,206,603       6,132,857       6,094,517      
Total Assets     9,155,396       9,076,418       8,945,485       8,867,268       8,773,024      
Total Deposits     7,231,236       7,015,284       7,185,051       6,973,688       6,949,238      
Total Borrowings     872,060       1,021,339       745,462       886,986       800,367      
Total Liabilities     8,200,158       8,136,057       8,018,646       7,953,952       7,863,675      
Stockholders' Equity     955,238       940,361       926,839       913,316       909,349      
               
Asset Quality:              
Nonaccrual Loans $    23,453   $   29,134   $   32,674   $   35,712   $   40,716      
90 Days Past Due and Still Accruing     3,388       2,849       2,392       4,810       4,444      
Total Nonperforming Loans     26,841       31,983       35,066       40,522       45,160      
Other Real Estate Owned     4,230       4,747       6,940       5,581       2,501      
Total Nonperforming Assets     31,071       36,730       42,006       46,103       47,661      
Allowance for Loan Losses     68,350       66,600       65,700       65,200       65,668      
               
Asset Quality Ratios (Total):              
Allowance for Loan Losses to Total Loans   1.06 %   1.05 %   1.05 %   1.05 %   1.07 %    
Total Nonperforming Loans to Total Loans   0.42 %   0.50 %   0.56 %   0.65 %   0.73 %    
Total Nonperforming Assets to Total Assets   0.34 %   0.40 %   0.47 %   0.52 %   0.54 %    
Allowance for Loan Losses to Total Nonperforming Loans   254.65 %   208.24 %   187.36 %   160.90 %   145.41 %    
Past Due Loans to Total Loans   0.63 %   0.59 %   0.54 %   0.64 %   0.57 %    
Net Charge-Offs to Average Loans (1)   0.38 %   0.42 %   0.45 %   0.56 %   0.35 %    
               
Asset Quality Ratios (Originated) (2):              
Allowance for Loan Losses to Loans   1.13 %   1.13 %   1.13 %   1.13 %   1.15 %    
Nonperforming Loans to Loans   0.39 %   0.48 %   0.53 %   0.61 %   0.68 %    
Allowance for Loan Losses to Nonperforming Loans   289.67 %   235.08 %   213.71 %   186.82 %   168.52 %    
Past Due Loans to Loans   0.65 %   0.61 %   0.55 %   0.66 %   0.56 %    
             
Capital:            
Equity to Assets   10.43 %   10.36 %   10.36 %   10.30 %   10.37 %  
Book Value Per Share $    21.94   $   21.61   $   21.34   $   21.11   $   21.08    
Tangible Book Value Per Share (3) $    15.42   $   15.06   $   14.88   $   14.61   $   14.57    
Tier 1 Leverage Ratio   9.12 %   9.08 %   9.08 %   9.11 %   9.05 %  
Common Equity Tier 1 Capital Ratio   10.08 %   9.96 %   10.02 %   9.98 %   9.84 %    
Tier 1 Capital Ratio   11.46 %   11.36 %   11.43 %   11.42 %   11.28 %  
Total Risk-Based Capital Ratio   12.45 %   12.32 %   12.40 %   12.39 %   12.27 %  
Common Stock Price (End of Period) $    36.72   $   36.95   $   37.07   $   41.88   $   32.87    
             
(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:   2017   2016
Cash and due from banks $    175,804 $   147,789
Short-term interest bearing accounts     6,012     1,392
Securities available for sale, at fair value      1,357,614     1,338,290
Securities held to maturity (fair value $495,411 and $525,050, respectively)     494,309     527,948
Trading securities     10,883     9,259
Federal Reserve and Federal Home Loan Bank stock     45,070     47,033
Loans     6,466,934     6,198,057
Less allowance for loan losses     68,350     65,200
Net loans    6,398,584   6,132,857
Premises and equipment, net     81,421     84,187
Goodwill     268,043     265,439
Intangible assets, net     15,911     15,815
Bank owned life insurance     171,125     168,012
Other assets     130,620     129,247
Total assets $    9,155,396 $   8,867,268
     
Liabilities and stockholders' equity:    
Deposits:    
Demand (noninterest bearing) $    2,312,715 $   2,195,845
Savings, NOW, and money market     4,141,765     3,905,432
Time     776,756     872,411
Total deposits   7,231,236   6,973,688
Short-term borrowings     681,950     681,703
Long-term debt     88,914     104,087
Junior subordinated debt     101,196     101,196
Other liabilities     96,862     93,278
Total liabilities   8,200,158   7,953,952
     
Total stockholders' equity     955,238     913,316
     
Total liabilities and stockholders' equity $    9,155,396 $   8,867,268
     

 

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,  
    2017     2016   2017     2016  
Interest, fee and dividend income:          
Interest and fees on loans $    68,086   $   63,414 $    197,399   $   187,093  
Securities available for sale   7,278       6,013     21,505       17,976  
Securities held to maturity   2,746       2,544     8,263       7,328  
Other   737       538     2,010       1,441  
Total interest, fee and dividend income     78,847       72,509     229,177       213,838  
Interest expense:          
Deposits   3,648       3,607     10,658       10,809  
Short-term borrowings   1,870       761     4,375       1,668  
Long-term debt   589       819     1,794       2,425  
Junior subordinated debt   810       660     2,308       1,920  
Total interest expense     6,917       5,847     19,135       16,822  
Net interest income     71,930       66,662     210,042       197,016  
Provision for loan losses   7,889       6,388     22,835       17,266  
Net interest income after provision for loan losses     64,041       60,274     187,207       179,750  
Noninterest income:          
Insurance and other financial services revenue   5,536       6,114     17,927       18,685  
Service charges on deposit accounts   4,261       4,354     12,399       12,459  
ATM and debit card fees   5,557       5,063     16,025       14,580  
Retirement plan administration fees   5,272       4,129     14,881       11,937  
Trust   4,927       4,535     14,620       13,848  
Bank owned life insurance income   1,284       1,336     3,913       3,898  
Net securities (losses) gains     (4 )     -      (2 )     30  
Other   3,945       4,113     10,069       12,188  
Total noninterest income     30,778       29,644     89,832       87,625  
Noninterest expense:          
Salaries and employee benefits   32,740       32,783     99,081       98,155  
Occupancy   5,174       5,035     16,528       15,780  
Data processing and communications   4,399       4,183     12,826       12,354  
Professional fees and outside services   3,107       3,343     9,748       9,905  
Equipment   3,733       3,656     11,224       10,663  
Office supplies and postage   1,432       1,438     4,680       4,661  
FDIC expense     1,257       1,287     3,571       3,838  
Advertising    665       634     1,711       1,733  
Amortization of intangible assets   993       952     2,999       2,976  
Loan collection and other real estate owned   1,684       985     3,627       2,535  
Other   5,417       5,318     16,209       15,683  
Total noninterest expense   60,601     59,614   182,204     178,283  
Income before income taxes   34,218     30,304   94,835     89,092  
Income tax expense   11,342       10,303     30,321       30,291  
Net income $    22,876   $   20,001 $    64,514   $   58,801  
Earnings Per Share:          
Basic $    0.52   $   0.46 $    1.48   $   1.36  
Diluted $    0.52   $   0.46 $    1.47   $   1.35  
           

  

 

NBT Bancorp Inc. and Subsidiaries
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)
     
  2017 2016
   3rd Q 2nd Q   1st Q 4th Q  3rd Q
Interest, fee and dividend income:          
Interest and fees on loans $   68,086   $   65,286 $   64,027 $   63,901   $   63,414
Securities available for sale     7,278       7,218     7,009   6,057     6,013
Securities held to maturity     2,746       2,736     2,781   2,524     2,544
Other     737       654     619   627     538
Total interest, fee and dividend income   78,847     75,894   74,436   73,109     72,509
Interest expense:          
Deposits     3,648       3,536     3,474   3,557     3,607
Short-term borrowings     1,870       1,366     1,139   641     761
Long-term debt     589       599     606   779     819
Junior subordinated debt     810       772     726   707     660
Total interest expense   6,917     6,273   5,945   5,684     5,847
Net interest income   71,930     69,621   68,491   67,425     66,662
Provision for loan losses     7,889       7,567     7,379   8,165     6,388
Net interest income after provision for loan losses   64,041     62,054   61,112   59,260     60,274
Noninterest income:          
Insurance and other financial services revenue     5,536       5,621     6,770   5,711     6,114
Service charges on deposit accounts     4,261       4,161     3,977   4,270     4,354
ATM and debit card fees     5,557       5,518     4,950   4,868     5,063
Retirement plan administration fees     5,272       5,437     4,172   4,126     4,129
Trust     4,927       5,161     4,532   4,717     4,535
Bank owned life insurance income     1,284       1,218     1,411   1,297     1,336
Net securities (losses) gains      (4 )     2     -      (674 )     - 
Other     3,945       3,186     2,938   3,773     4,113
Total noninterest income   30,778     30,304   28,750   28,088     29,644
Noninterest expense:          
Salaries and employee benefits     32,740       32,754     33,587   31,547     32,783
Occupancy     5,174       5,184     6,170   5,160     5,035
Data processing and communications     4,399       4,229     4,198   4,141     4,183
Professional fees and outside services     3,107       3,609     3,032   3,712     3,343
Equipment     3,733       3,793     3,698   3,632     3,656
Office supplies and postage     1,432       1,640     1,608   1,507     1,438
FDIC expense     1,257       1,136     1,178   1,273     1,287
Advertising     665       656     390   823     634
Amortization of intangible assets     993       1,039     967   952     952
Loan collection and other real estate owned     1,684       664     1,279   923     985
Other     5,417       5,617     5,175   3,969     5,318
Total noninterest expense   60,601     60,321   61,282   57,639     59,614
Income before income taxes   34,218     32,037   28,580   29,709     30,304
Income tax expense     11,342       10,678     8,301   10,101     10,303
Net income $   22,876   $   21,359 $   20,279 $   19,608   $   20,001
Earnings Per Share:          
Basic $   0.52   $   0.49 $   0.47 $   0.45   $   0.46
Diluted $   0.52   $   0.49 $   0.46 $   0.45   $   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,  Q3 - 2017 Q2 - 2017 Q1 - 2017 Q4 - 2016 Q3 - 2016  
Assets:                      
Short-term interest bearing accounts $    9,000 2.42 % $   9,497 1.82 % $   14,342 1.33 % $   14,190 0.64 % $   21,279 0.54 %  
Securities available for sale (1)(2)     1,374,739 2.13 %     1,363,314 2.15 %     1,352,219 2.14 %     1,277,931 1.92 %     1,257,335 1.93 %  
Securities held to maturity (1)      506,324 2.66 %     513,888 2.63 %     520,283 2.66 %     492,415 2.54 %     494,400 2.54 %  
Investment in FRB and FHLB Banks     49,902 5.42 %     46,132 5.31 %     46,326 5.01 %     39,448 6.09 %     43,552 4.65 %  
Loans (3)     6,400,287 4.23 %     6,294,056 4.17 %     6,211,058 4.19 %     6,155,985 4.14 %     6,092,371 4.15 %  
Total interest earning assets $   8,340,252 3.80 % $   8,226,887 3.75 % $   8,144,228 3.75 % $   7,979,969 3.69 % $   7,908,937 3.69 %  
Other assets     759,636       753,383       748,476       760,563       754,813    
Total assets $   9,099,888   $   8,980,270   $   8,892,704   $   8,740,532   $   8,663,750    
                       
Liabilities and stockholders' equity:                      
Money market deposit accounts $ 1,652,730 0.23 % $ 1,723,594 0.21 % $ 1,688,060 0.21 % $ 1,674,119 0.21 % $ 1,636,815 0.22 %  
NOW deposit accounts     1,130,940 0.10 %     1,138,237 0.08 %     1,143,231 0.06 %     1,130,578 0.05 %     1,053,590 0.05 %  
Savings deposits     1,232,823 0.06 %     1,232,301 0.06 %     1,176,224 0.05 %     1,145,352 0.06 %     1,146,013 0.06 %  
Time deposits     805,435 1.09 %     824,398 1.08 %     847,410 1.07 %     890,506 1.06 %     902,185 1.07 %  
Total interest bearing deposits $   4,821,928 0.30 % $   4,918,530 0.29 % $   4,854,925 0.29 % $   4,840,555 0.29 % $   4,738,603 0.30 %  
Short-term borrowings     773,074 0.96 %     643,971 0.85 %     657,442 0.70 %     523,708 0.49 %     611,339 0.50 %  
Long-term debt     88,935 2.63 %     99,865 2.41 %     104,048 2.36 %     109,656 2.83 %     110,703 2.94 %  
Junior subordinated debt     101,196 3.18 %     101,196 3.06 %     101,196 2.91 %     101,196 2.78 %     101,196 2.59 %  
Total interest bearing liabilities $   5,785,133 0.47 % $   5,763,562 0.44 % $   5,717,611 0.42 % $   5,575,115 0.41 % $   5,561,841 0.42 %  
Demand deposits     2,260,973       2,181,952       2,159,893       2,136,310       2,079,266    
Other liabilities     103,225       93,859       95,153       115,258       118,198    
Stockholders' equity     950,557       940,897       920,047       913,849       904,445    
Total liabilities and stockholders' equity $   9,099,888   $   8,980,270   $   8,892,704   $   8,740,532   $   8,663,750    
                       
Interest rate spread   3.33 %   3.31 %   3.33 %   3.29 %   3.27 %  
Net interest margin   3.47 %   3.44 %   3.46 %   3.41 %   3.40 %  
                       
(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  
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,    2017     2016    
Assets:              
Short-term interest bearing accounts $    10,927 $    144 1.76 % $   17,009 $   72 0.57 %  
Securities available for sale (1)(2)     1,363,506     21,815 2.14 %     1,224,500     18,286 1.99 %  
Securities held to maturity (1)      513,447     10,178 2.65 %     486,299     9,111 2.50 %  
Investment in FRB and FHLB Banks     47,466     1,866 5.26 %     38,672     1,369 4.73 %  
Loans (3)     6,302,494     198,027 4.20 %     5,995,063     187,629 4.18 %  
Total interest earning assets $    8,237,840 $    232,030 3.77 %     7,761,543 $   216,467 3.73 %  
Other assets     753,873         733,771      
Total assets $    8,991,713     $   8,495,314      
               
Liabilities and stockholders' equity:              
Money market deposit accounts $    1,687,998 $    2,791 0.22 % $   1,666,687 $   2,720 0.22 %  
NOW deposit accounts     1,137,424     682 0.08 %     1,059,787     400 0.05 %  
Savings deposits     1,213,990     509 0.06 %     1,131,768     491 0.06 %  
Time deposits     825,594     6,676 1.08 %     910,034     7,198 1.06 %  
Total interest bearing deposits $    4,865,006 $    10,658 0.29 % $   4,768,276 $   10,809 0.30 %  
Short-term borrowings     691,919     4,375 0.85 %     488,906     1,668 0.46 %  
Long-term debt     97,561     1,794 2.46 %     121,950     2,425 2.66 %  
Junior subordinated debt     101,196     2,308 3.05 %     101,196     1,920 2.53 %  
Total interest bearing liabilities $    5,755,682 $    19,135 0.44 % $   5,480,328 $   16,822 0.41 %  
Demand deposits     2,201,309         2,014,963      
Other liabilities     97,443         108,373      
Stockholders' equity     937,279         891,650      
Total liabilities and stockholders' equity $    8,991,713     $   8,495,314      
Net interest income (FTE)       212,895         199,645    
Interest rate spread     3.33 %     3.32 %  
Net interest margin     3.46 %     3.44 %  
Taxable equivalent adjustment        2,853         2,629    
Net interest income   $    210,042     $   197,016    
               
(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
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Residential real estate mortgages $    1,302,577 $   1,275,807 $   1,275,774 $   1,262,614 $   1,240,337
Commercial     1,307,560     1,342,334     1,284,464     1,242,701     1,252,644
Commercial real estate     1,654,727     1,563,980     1,540,472     1,543,301     1,528,498
Consumer     1,700,340     1,684,936     1,669,369     1,641,657     1,625,294
Home equity     501,730     500,854     502,224     507,784     513,412
Total loans $    6,466,934 $   6,367,911 $   6,272,303 $   6,198,057 $   6,160,185
           

  

Source: NBT Bancorp Inc.

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