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

NBT Bancorp Inc. Announces Record Net Income of $76.4 Million; Declares Cash Dividend

01/25/16

NORWICH, N.Y., Jan. 25, 2016 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the year ended December 31, 2015 of $76.4 million, up from $75.1 million from the prior year.  Earnings per diluted share for the year ended December 31, 2015 was $1.72, up from $1.69 for the prior year. 

Net income for the three months ended December 31, 2015 was $19.1 million, up from $18.5 million for the same period last year.  Diluted earnings per share for the three months ended December 31, 2015 was $0.43, up from $0.42 for the same period last year. 

2015 Highlights:

  • 2015 organic loan growth of 5.1% 
  • Average demand deposits for 2015 up 11.2% from 2014
  • Improvement in asset quality indicators:
    • Nonperforming loans to total loans improved to 0.64% at December 31, 2015 from 0.82% at December 31, 2014
    • Past due loans to total loans improved to 0.62% at December 31, 2015 from 0.69% at December 31, 2014
    • Net charge-offs to average loans improved to 0.38% for 2015 from 0.41% in 2014

“We are pleased to report strong financial performance in 2015, including record net income of $76.4 million, in a very challenging environment,” said NBT President and CEO Martin Dietrich. “Our organic deposit and loan growth and improvement in our asset quality indicators demonstrate the ongoing efforts of our employees to deliver quality financial solutions and build lasting relationships while constantly striving to enhance the experience we deliver to our customers. We remain confident that NBT is well positioned for future success and will continue investing in our company to create long-term value for our shareholders.”

Net interest income was $252.6 million for the year ended December 31, 2015, up $0.7 million from 2014.  Fully taxable equivalent (“FTE”) net interest margin was 3.50% for the year ended December 31, 2015, down from 3.61% for the year ended December 31, 2014.  Average interest earning assets were up $241.8 million, or 3.4%, for the year ended December 31, 2015 as compared to 2014.  This increase from last year was driven primarily by organic loan growth in both years.  Yields on earning assets decreased from 3.94% during 2014 to 3.78% for 2015, more than offsetting the growth in earning assets, resulting in a 0.7% decrease in interest income for the year ended December 31, 2015 as compared to the year ended December 31, 2014.  The yield compression was driven by a 20 basis-point decrease in loan yields from 2014 to 2015.  Average interest bearing liabilities increased $21.0 million, or 0.4%, from the year ended December 31, 2014 to the year ended December 31, 2015.  Total average deposits increased $344.2 million, or 5.6%, for the year ended December 31, 2015 as compared to last year driven primarily by an 11.2% increase in non-interest bearing demand deposits, as well as increases in money market deposit accounts and savings deposits in 2015.  This increase was partially offset by a decrease in average long-term borrowings of $93.9 million for the year ended December 31, 2015 as compared to last year due to the debt restructuring strategy completed during the third quarter of 2014.  In addition, average short-term borrowings decreased $42.6 million for the year ended December 31, 2015 as compared to last year driven by deposit growth.  The rates paid on interest bearing liabilities decreased by 5 basis-points for the year ended December 31, 2015 as compared to 2014.  This decrease resulted primarily from a shift in deposits into lower cost core deposits as well as the aforementioned debt restructuring.

Net interest income was $63.5 million for the fourth quarter of 2015, down $0.7 million from the previous quarter, and down $0.5 million from the fourth quarter of 2014.  FTE net interest margin was 3.42% for the three months ended December 31, 2015, down from 3.48% for the previous quarter and down from 3.61% for the fourth quarter of 2014.  Average interest earning assets were up $49.2 million, or 0.7%, for the fourth quarter of 2015 as compared to the prior quarter, and up $341.5 million, or 4.8%, from the same period in 2014.  The increase from the third quarter of 2015 was driven primarily by organic loan production.  Yields on earning assets decreased by 7 basis-points from 3.77% during the third quarter of 2015 to 3.70% for the fourth quarter of 2015.  This decrease in yield was partially offset by the growth in earning assets during the fourth quarter of 2015, and resulted in the 1.0% decrease in interest income for the fourth quarter of 2015 as compared to the prior quarter.  The yield compression was driven primarily by a 9 basis-point decrease in loan yields from the third quarter of 2015 to the fourth quarter of 2015.  Average interest bearing liabilities decreased nominally from the third quarter of 2015 to the fourth quarter of 2015.  The rate paid on interest bearing liabilities was 0.40% for both the fourth and third quarters of 2015 and contributed to the relatively flat interest expense for the fourth quarter of 2015 as compared to the prior quarter.      

Noninterest income for the year ended December 31, 2015 was $118.5 million, down $7.5 million, or 6.0%, from the year ended December 31, 2014.  The decrease from 2014 was primarily driven by a gain recognized in 2014 from the previously disclosed sale of our ownership interest in Springstone.  This decrease was offset by a gain on the sale of an equity investment totaling $3.0 million in the fourth quarter of 2015.  In addition, retirement plan administration fees were up $2.0 million, or 16.6%, from 2014 to 2015 due to new business generation as well as the 2015 acquisition of Third Party Administrators, Inc. (“TPA, Inc.”).  ATM and debit card fees were up $1.1 million, or 6.5%, in 2015 as compared to 2014 due to an increase in debit card activity.  Other noninterest income was up $3.7 million in 2015 as compared with 2014 due primarily to charge-off recoveries on acquired loans of $1.5 million and a favorable settlement of a prior accrual of $1.6 million in 2015.    

Noninterest income for the three months ended December 31, 2015 was $32.5 million, up $1.2 million from the prior period, and up $5.4 million from the same period in 2014.  The increase from 2014 was primarily driven by the aforementioned $3.0 million gain from the 2015 sale of an equity investment.  In addition, retirement plan administration fees were up $1.2 million during the three months ended December 31, 2015 as compared with the same period in 2014, due primarily to the aforementioned acquisition of TPA, Inc.  Other noninterest income was up $2.1 million in fourth quarter of 2015 as compared with the same period in 2014 due primarily to the aforementioned favorable settlement of a prior accrual in 2015.         

Noninterest expense for the year ended December 31, 2015 was $236.2 million, down $9.9 million from 2014.  This decrease was driven primarily by $17.9 million in prepayment penalties resulting from the debt restructuring in 2014.  This decrease was partially offset by an increase in salaries and employee benefits of $4.7 million, or 3.9%, from 2014 to 2015.  This increase was driven primarily by higher post retirement expenses as well as contract termination costs accrued in the fourth quarter of 2015.  In addition, other operating expenses were up $4.6 million in 2015 as compared with 2014.  This increase was driven primarily by branch reorganization expenses totaling $3.8 million in 2015.    

Noninterest expense for the three months ended December 31, 2015 was $60.6 million, up $0.7 million from the previous quarter, and up $3.9 million from the same period in 2014.  The increase from the prior quarter was due primarily to an increase in salaries and employee benefits driven by higher post retirement costs as well as the aforementioned contract termination costs in the fourth quarter of 2015.  This increase was partially offset by a $2.9 million decrease in other operating expenses for the fourth quarter of 2015 as compared with the third quarter of 2015.  This decrease was driven by the aforementioned branch reorganization expenses, which were mostly incurred during the third quarter of 2015.  The increase in noninterest expense from the fourth quarter of 2014 to the fourth quarter of 2015 was driven primarily by the aforementioned increase in salaries and employee benefits.  

Asset Quality

Net charge-offs were $21.6 million for the year ended December 31, 2015, down from $22.6 million for the year ended December 31, 2014.  Provision expense was $18.3 million for the year ended December 31, 2015, as compared with $19.5 million for 2014.  Net charge-offs to average loans for 2015 was 0.38%, compared with 0.41% for 2014.  Included in these net charge-offs were $1.3 million and $3.0 million during the fourth quarter of 2015 and 2014, respectively, related to one acquired commercial loan relationship.

Net charge-offs were $7.6 million for the three months ended December 31, 2015, up from $5.1 million for the prior quarter, and down from $9.9 million for the fourth quarter of 2014.  Provision expense was $5.8 million for the three months ended December 31, 2015, as compared with $5.0 million for the prior quarter, and $6.9 million for the fourth quarter of 2014.  Annualized net charge-offs to average loans for the fourth quarter of 2015 was 0.51%, compared with 0.35% for the third quarter of 2015 and 0.70% for the fourth quarter of 2014.

Nonperforming loans to total loans was 0.64% at December 31, 2015, down from 0.79% for the prior quarter, and down from 0.82% at December 31, 2014.  Past due loans as a percentage of total loans were 0.62% at December 31, 2015, down slightly from 0.63% at September 31, 2015, and down from 0.69% at December 31, 2014.   

The allowance for loan losses totaled $63.0 million at December 31, 2015, compared to $64.9 million at September 30, 2015, and $66.4 million at December 31, 2014.  The allowance for loan losses as a percentage of loans was 1.07% (1.18% excluding acquired loans with no related allowance recorded) at December 31, 2015, compared to 1.10% (1.21% excluding acquired loans with no related allowance recorded) at September 30, 2015 and 1.19% (1.36% excluding acquired loans with no related allowance recorded) at December 31, 2014.  The decrease in the allowance for loan losses as a percentage of loans from prior periods was due primarily to continued positive trends in asset quality metrics of the originated loan portfolio.   

Balance Sheet

Total assets were $8.3 billion at December 31, 2015, up $455.3 million, or 5.8% from December 31, 2014.  Loans were $5.9 billion at December 31, 2015, up $287.9 million from December 31, 2014, due to organic loan growth in 2015.  Total deposits were $6.6 billion at December 31, 2015, up $305.2 million, or 4.8%, from December 31, 2014.  Stockholders’ equity was $882.0 million, representing a total equity-to-total assets ratio of 10.67% at December 31, 2015, compared with $864.2 million or a total equity-to-total assets ratio of 11.07% at December 31, 2014.

Stock Repurchase Program

The Company purchased 1,047,152 shares of its common stock during the year ended December 31, 2015 at an average price of $25.59 per share under previously announced plans.  As of December 31, 2015, there were 952,848 shares available for repurchase under the repurchase plan that was announced on July 27, 2015, which expires on December 31, 2016.

Dividend

The NBT Board of Directors declared a 2016 first-quarter cash dividend of $0.22 per share at a meeting held today.  The dividend will be paid on March 15, 2016 to shareholders of record as of March 1, 2016.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.3 billion at December 31, 2015.  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 155 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)            
             
    2015     2014    
  4th Q 3rd Q 2nd Q 1st Q 4th Q  
Profitability:            
Diluted Earnings Per Share $ 0.43   $ 0.45   $ 0.43   $ 0.41   $ 0.42    
Weighted Average Diluted             
Common Shares Outstanding   44,072,049     44,262,426     44,530,123     44,641,913     44,535,274    
Return on Average Assets (1)   0.93 %   0.97 %   0.97 %   0.94 %   0.94 %  
Return on Average Equity (1)   8.58 %   8.97 %   8.81 %   8.46 %   8.46 %  
Return on Average Tangible Common Equity (1)(3)   13.04 %   13.66 %   13.47 %   13.08 %   13.09 %  
Net Interest Margin (1)(2)   3.42 %   3.48 %   3.51 %   3.60 %   3.61 %  
             
  12 Months ended December 31,        
    2015     2014        
Profitability:      
Diluted Earnings Per Share $ 1.72   $ 1.69    
Weighted Average Diluted             
Common Shares Outstanding   44,389,356     44,394,560    
Return on Average Assets   0.96 %   0.97 %  
Return on Average Equity   8.70 %   8.84 %  
Return on Average Tangible Common Equity (4)   13.31 %   13.90 %  
Net Interest Margin (2)   3.50 %   3.61 %  
             
(1)  Annualized            
(2)  Calculated on a Fully Tax Equivalent (“FTE”) basis            
(3)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:    
             
             
    2015     2014    
  4th Q 3rd Q 2nd Q 1st Q 4th Q  
Net Income $   19,127   $   19,851   $   19,281   $   18,166   $   18,513    
Amortization of intangible assets (net of tax)     750       712       725       784       749    
  $   19,877   $   20,563   $   20,006   $   18,950   $   19,262    
             
Average stockholders' equity $   884,743   $   878,305   $   878,164   $   871,074   $   868,634    
Less: average goodwill and other intangibles     279,904       281,048       282,272       283,508       284,743    
Average tangible common equity $   604,839   $   597,257   $   595,892   $   587,566   $   583,891    
             
(4)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:    
             
  12 Months ended December 31,        
    2015     2014          
Net Income $   76,425   $   75,074          
Amortization of intangible assets (net of tax)     2,971       3,083          
  $   79,396   $   78,157          
             
Average stockholders' equity $   878,110   $   849,465          
Less: average goodwill and other intangibles     281,671       287,013          
Average tangible common equity $   596,439   $   562,452          
             
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)            
             
             
    2015     2014    
  4th Q 3rd Q 2nd Q 1st Q 4th Q  
Balance Sheet Data:            
Securities Available for Sale $ 1,174,544   $ 1,058,397   $ 1,129,249   $ 1,071,654   $ 1,013,171    
Securities Held to Maturity     471,031       470,758       454,312       456,773       454,361    
Net Loans     5,820,115       5,806,129       5,705,929       5,557,664       5,528,912    
Total Assets     8,262,646       8,178,976       8,081,892       7,877,527       7,807,340    
Total Deposits     6,604,843       6,600,627       6,371,479       6,479,437       6,299,605    
Total Borrowings     674,124       594,163       743,893       425,143       548,943    
Total Liabilities     7,380,642       7,302,760       7,205,921       7,000,033       6,943,159    
Stockholders' Equity     882,004       876,216       875,971       877,494       864,181    
             
Asset Quality:            
Nonaccrual Loans $ 33,744   $ 42,524   $ 42,286   $ 45,053   $ 41,074    
90 Days Past Due and Still Accruing     3,662       3,790       1,994       2,601       4,941    
Total Nonperforming Loans     37,406       46,314       44,280       47,654       46,015    
Other Real Estate Owned     4,666       4,855       4,649       4,387       3,964    
Total Nonperforming Assets     42,072       51,169       48,929       52,041       49,979    
Allowance for Loan Losses     63,018       64,859       64,959       65,359       66,359    
             
Asset Quality Ratios (Total):            
Allowance for Loan Losses to Total Loans   1.07 %   1.10 %   1.13 %   1.16 %   1.19 %  
Total Nonperforming Loans to Total Loans   0.64 %   0.79 %   0.77 %   0.85 %   0.82 %  
Total Nonperforming Assets to Total Assets   0.51 %   0.63 %   0.61 %   0.66 %   0.64 %  
Allowance for Loan Losses to Total Nonperforming Loans   168.47 %   140.04 %   146.70 %   137.15 %   144.21 %  
Past Due Loans to Total Loans   0.62 %   0.63 %   0.61 %   0.54 %   0.69 %  
Net Charge-Offs to Average Loans (3)   0.51 %   0.35 %   0.30 %   0.34 %   0.70 %  
             
Asset Quality Ratios (Originated) (1):            
Allowance for Loan Losses to Loans   1.18 %   1.21 %   1.24 %   1.29 %   1.36 %  
Nonperforming Loans to Loans   0.61 %   0.63 %   0.59 %   0.69 %   0.72 %  
Allowance for Loan Losses to Nonperforming Loans   193.00 %   192.49 %   208.99 %   188.68 %   187.88 %  
Past Due Loans to Loans   0.64 %   0.67 %   0.64 %   0.56 %   0.73 %  
             
Capital:            
Equity to Assets   10.67 %   10.71 %   10.84 %   11.14 %   11.07 %  
Book Value Per Share $ 20.31   $ 20.29   $ 20.05   $ 19.95   $ 19.69    
Tangible Book Value Per Share (2) $ 13.79   $ 13.80   $ 13.61   $ 13.52   $ 13.22    
Tier 1 Leverage Ratio   9.44 %   9.34 %   9.57 %   9.72 %   9.39 %  
Common Equity Tier 1 Capital Ratio   10.20 %   10.04 %   10.22 %   10.46 %   N/A    
Tier 1 Capital Ratio   11.73 %   11.57 %   11.78 %   12.05 %   12.32 %  
Total Risk-Based Capital Ratio   12.74 %   12.62 %   12.84 %   13.15 %   13.50 %  
Common Stock Price (End of Period) $ 27.88   $ 26.94   $ 26.17   $ 25.06   $ 26.27    
             
(1)  Excludes acquired loans            
(2)  Stockholders' equity less goodwill and intangible assets divided by common shares outstanding      
(3)  Annualized            

 

NBT Bancorp Inc. and Subsidiaries       
CONSOLIDATED BALANCE SHEETS      
(unaudited, dollars in thousands)      
       
  December 31, December 31,  
ASSETS   2015     2014    
Cash and due from banks $    130,593   $   139,635    
Short term interest bearing accounts     9,704       7,001    
Securities available for sale, at fair value      1,174,544       1,013,171    
Securities held to maturity (fair value of $473,140 and $454,994 at     471,031       454,361    
December 31, 2015 and December 31, 2014, respectively)      
Trading securities     8,377       7,793    
Federal Reserve and Federal Home Loan Bank stock     36,673       32,626    
Loans     5,883,133       5,595,271    
Less allowance for loan losses     63,018       66,359    
Net loans    5,820,115     5,528,912    
Premises and equipment, net     88,826       89,258    
Goodwill     265,957       263,634    
Intangible assets, net     17,265       20,317    
Bank owned life insurance     117,044       114,251    
Other assets     122,517       136,381    
TOTAL ASSETS $    8,262,646   $    7,807,340    
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Deposits:      
Demand (noninterest bearing) $    1,998,165   $   1,838,622    
Savings, NOW, and money market     3,697,851       3,417,160    
Time     908,827       1,043,823    
Total deposits   6,604,843     6,299,605    
Short-term borrowings     442,481       316,802    
Long-term debt     130,447       130,945    
Junior subordinated debt     101,196       101,196    
Other liabilities     101,675       94,611    
Total liabilities   7,380,642     6,943,159    
       
Total stockholders' equity     882,004       864,181    
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    8,262,646   $    7,807,340    

 

NBT Bancorp Inc. and Subsidiaries             
CONSOLIDATED STATEMENTS OF INCOME            
(unaudited, dollars in thousands except per share data)          
             
  Three Months Ended   Twelve Months Ended  
  December 31,   December 31,  
    2015     2014       2015     2014    
Interest, fee and dividend income:            
Loans $    60,781   $   61,577     $    241,828   $   243,324    
Securities available for sale   5,204       5,000         20,418       24,464    
Securities held to maturity   2,317       2,357         9,233       5,261    
Other   469       480         1,745       2,032    
Total interest, fee and dividend income     68,771       69,414         273,224       275,081    
Interest expense:            
Deposits   3,613       3,856         14,257       13,638    
Short-term borrowings   222       143         783       845    
Long-term debt   848       846         3,355       6,555    
Junior subordinated debt   576       545         2,221       2,165    
Total interest expense     5,259       5,390         20,616       23,203    
Net interest income     63,512       64,024         252,608       251,878    
Provision for loan losses   5,779       6,892         18,285       19,539    
Net interest income after provision for loan losses     57,733       57,132         234,323       232,339    
Noninterest income:            
Insurance and other financial services revenue   6,139       6,007         24,211       24,517    
Service charges on deposit accounts   4,350       4,656         17,056       17,941    
ATM and debit card fees   4,541       4,266         18,248       17,135    
Retirement plan administration fees   4,135       2,962         14,146       12,129    
Trust   4,769       4,793         19,026       18,950    
Bank owned life insurance income   916       1,894         4,334       5,349    
Net securities gains   3,044       33         3,087       92    
Gain on the sale of Springstone investment     -        -          4,179       19,401    
Other   4,577       2,435         14,194       10,513    
Total noninterest income     32,471       27,046         118,481       126,027    
Noninterest expense:            
Salaries and employee benefits   33,078       30,058         124,318       119,667    
Occupancy   5,291       5,256         22,095       22,128    
Data processing and communications   3,990       4,092         16,588       16,137    
Professional fees and outside services   3,378       3,564         13,407       14,426    
Equipment   3,491       3,211         13,408       12,658    
Office supplies and postage   1,545       1,762         6,367       6,983    
FDIC expenses     1,312       1,302         5,145       4,944    
Advertising   780       963         2,654       2,831    
Amortization of intangible assets   1,228       1,226         4,864       5,047    
Loan collection and other real estate owned   1,027       702         2,620       3,248    
Prepayment penalties on long-term debt     -        -          -        17,902    
Other operating   5,499       4,607         24,710       20,092    
Total noninterest expense   60,619     56,743       236,176     246,063    
Income before income taxes   29,585     27,435       116,628     112,303    
Income taxes   10,458       8,922         40,203       37,229    
Net income $    19,127   $   18,513     $    76,425   $   75,074    
Earnings Per Share:            
Basic $    0.44   $   0.42     $    1.74   $   1.71    
Diluted $    0.43   $   0.42     $    1.72   $   1.69    

 

NBT Bancorp Inc. and Subsidiaries          
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME          
(unaudited, dollars in thousands except per share data)          
       
    2015     2014  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Interest, fee and dividend income:          
Loans $   60,781   $   61,656   $   59,873   $   59,518   $   61,577  
Securities available for sale   5,204     5,125     5,144     4,945     5,000  
Securities held to maturity   2,317     2,318     2,315     2,283     2,357  
Other   469     401     395     480     480  
Total interest, fee and dividend income   68,771     69,500     67,727     67,226     69,414  
Interest expense:          
Deposits   3,613     3,554     3,517     3,573     3,856  
Short-term borrowings   222     296     144     121     143  
Long-term debt   848     845     836     826     846  
Junior subordinated debt   576     560     545     540     545  
Total interest expense   5,259     5,255     5,042     5,060     5,390  
Net interest income   63,512     64,245     62,685     62,166     64,024  
Provision for loan losses   5,779     4,966     3,898     3,642     6,892  
Net interest income after provision for loan losses   57,733     59,279     58,787     58,524     57,132  
Noninterest income:          
Insurance and other financial services revenue   6,139     5,862     5,836     6,374     6,007  
Service charges on deposit accounts   4,350     4,349     4,285     4,072     4,656  
ATM and debit card fees   4,541     4,780     4,679     4,248     4,266  
Retirement plan administration fees   4,135     3,249     3,566     3,196     2,962  
Trust   4,769     4,611     5,196     4,450     4,793  
Bank owned life insurance income   916     931     928     1,559     1,894  
Net securities gains   3,044     3     26     14     33  
Gain on the sale of Springstone investment     -        4,179       -        -        -   
Other   4,577     3,297     3,699     2,621     2,435  
Total noninterest income   32,471     31,261     28,215     26,534     27,046  
Noninterest expense:          
Salaries and employee benefits   33,078     30,227     30,831     30,182     30,058  
Occupancy   5,291     5,326     5,412     6,066     5,256  
Data processing and communications   3,990     4,207     4,288     4,103     4,092  
Professional fees and outside services   3,378     3,137     3,395     3,497     3,564  
Equipment   3,491     3,352     3,316     3,249     3,211  
Office supplies and postage   1,545     1,576     1,627     1,619     1,762  
FDIC expenses   1,312     1,355     1,280     1,198     1,302  
Advertising   780     421     734     719     963  
Amortization of intangible assets   1,228     1,165     1,187     1,284     1,226  
Loan collection and other real estate owned   1,027     699     22     872     702  
Other operating   5,499     8,426     5,872     4,913     4,607  
Total noninterest expense   60,619     59,891     57,964     57,702     56,743  
Income before income taxes   29,585     30,649     29,038     27,356     27,435  
Income taxes   10,458     10,798     9,757     9,190     8,922  
Net income $   19,127   $   19,851   $   19,281   $   18,166   $   18,513  
Earnings per share:          
Basic $   0.44   $   0.45   $   0.44   $   0.41   $   0.42  
Diluted $   0.43   $   0.45   $   0.43   $   0.41   $   0.42  
           
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
  Q4 - 2015 Q3 - 2015 Q2 - 2015   Q1 - 2015   Q4 - 2014  
ASSETS:                    
Short-term interest bearing accounts $    13,494     0.34 % $   8,100     0.32 % $   9,854     0.36 % $   9,156     0.30 % $   5,895     0.51 %
Securities available for sale (1)(2)     1,070,643     1.97 %     1,079,206     1.92 %     1,067,619     1.98 %     1,018,880     2.02 %     1,018,505     2.00 %
Securities held to maturity (1)     470,027     2.43 %     460,252     2.44 %     452,948     2.49 %     454,957     2.47 %     458,038     2.45 %
Investment in FRB and FHLB Banks     32,263     5.63 %     37,358     4.19 %     31,564     4.90 %     30,931     6.20 %     31,274     6.01 %
Loans (3)     5,872,011     4.12 %     5,824,311     4.21 %     5,688,159     4.24 %     5,586,942     4.33 %     5,603,268     4.37 %
Total interest earning assets $   7,458,438     3.70 % $   7,409,227     3.77 % $   7,250,144     3.79 % $   7,100,866     3.89 % $   7,116,980     3.92 %
Other assets     693,981         690,768         685,523         696,091         709,955    
Total assets $   8,152,419     $   8,099,995     $   7,935,667     $   7,796,957     $   7,826,935    
                     
LIABILITIES AND STOCKHOLDERS' EQUITY:                    
Money market deposit accounts $ 1,626,644     0.22 % $ 1,557,651     0.22 % $ 1,598,898     0.20 % $ 1,544,488     0.21 % $ 1,524,881     0.20 %
NOW deposit accounts     1,039,563     0.05 %     963,744     0.05 %     974,504     0.05 %     972,263     0.05 %     978,527     0.05 %
Savings deposits     1,079,757     0.06 %     1,085,680     0.06 %     1,080,954     0.06 %     1,040,031     0.06 %     1,017,300     0.08 %
Time deposits     918,875     1.05 %     939,542     1.01 %     968,714     1.00 %     1,014,904     1.00 %     1,058,615     1.03 %
Total interest bearing deposits $   4,664,839     0.31 % $   4,546,617     0.31 % $   4,623,070     0.31 % $   4,571,686     0.32 % $   4,579,323     0.33 %
Short-term borrowings     332,742     0.26 %     456,663     0.26 %     302,693     0.19 %     265,420     0.19 %     299,981     0.19 %
Junior subordinated debt     101,196     2.26 %     101,196     2.20 %     101,196     2.16 %     101,196     2.16 %     101,196     2.13 %
Long-term debt     130,522     2.58 %     130,680     2.56 %     130,743     2.56 %     130,879     2.56 %     131,000     2.56 %
Total interest bearing liabilities $   5,229,299     0.40 % $   5,235,156     0.40 % $   5,157,702     0.39 % $   5,069,181     0.40 % $   5,111,500     0.42 %
Demand deposits     1,944,820         1,894,555         1,815,705         1,770,703         1,759,482    
Other liabilities     93,557         91,979         84,096         85,999         87,319    
Stockholders' equity     884,743         878,305         878,164         871,074         868,634    
Total liabilities and stockholders' equity $   8,152,419     $   8,099,995     $   7,935,667     $   7,796,957     $   7,826,935    
                     
Interest rate spread     3.30 %     3.37 %     3.40 %     3.49 %     3.50 %
Net interest margin     3.42 %     3.48 %     3.51 %     3.60 %     3.61 %
                     
(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 
Twelve Months ended December 31,    2015     2014  
ASSETS:            
Short-term interest bearing accounts $ 10,157   $ 33     0.33 % $   4,344   $   28     0.65 %
Securities available for sale (1)(2)     1,059,284       20,888     1.97 %     1,258,999       25,760     2.05 %
Securities held to maturity (1)     459,589       11,296     2.46 %     233,465       6,558     2.81 %
Investment in FRB and FHLB Banks     33,044       1,712     5.18 %     39,290       2,005     5.10 %
Loans (3)     5,743,860       242,587     4.22 %     5,528,015       244,162     4.42 %
Total interest earning assets $    7,305,934   $    276,516     3.78 %     7,064,113   $   278,513     3.94 %
Other assets     691,583           691,934      
Total assets $    7,997,517       $   7,756,047      
             
LIABILITIES AND STOCKHOLDERS' EQUITY:            
Money market deposit accounts $ 1,582,078       3,351     0.21 % $   1,457,770   $   2,532     0.17 %
NOW deposit accounts     987,638       515     0.05 %     949,759       509     0.05 %
Savings deposits     1,071,753       651     0.06 %     1,020,974       760     0.07 %
Time deposits     960,188       9,740     1.01 %     1,015,748       9,837     0.97 %
Total interest bearing deposits $    4,601,657   $    14,257     0.31 % $   4,444,251   $   13,638     0.31 %
Short-term borrowings     339,885       783     0.23 %     382,451       845     0.22 %
Junior subordinated debt     101,196       2,221     2.19 %     101,196       2,165     2.14 %
Long-term debt     130,705       3,355     2.57 %     224,556       6,555     2.92 %
Total interest bearing liabilities $    5,173,443   $    20,616     0.40 % $   5,152,454   $   23,203     0.45 %
Demand deposits     1,857,027           1,670,188      
Other liabilities     88,937           83,940      
Stockholders' equity     878,110           849,465      
Total liabilities and stockholders' equity $    7,997,517       $   7,756,047      
Net interest income (FTE)       255,900           255,310    
Interest rate spread       3.38 %       3.49 %
Net interest margin       3.50 %       3.61 %
Taxable equivalent adjustment       3,292           3,432    
Net interest income   $    252,608       $   251,878    
             
(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)          
           
           
    2015     2014  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Residential real estate mortgages $   1,196,780   $   1,177,195   $   1,154,416   $   1,125,886   $   1,115,715  
Commercial     1,159,089       1,167,007       1,147,586       1,140,114       1,144,761  
Commercial real estate     1,430,618       1,435,378       1,423,489       1,349,940       1,334,984  
Consumer     1,568,204       1,549,844       1,495,160       1,452,070       1,430,216  
Home equity     528,442       541,564       550,237       555,013       569,595  
Total loans $   5,883,133   $   5,870,988   $   5,770,888   $   5,623,023   $   5,595,271  


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

NBT Bancorp Inc.
Copyright © 2018 - NBT Bancorp All Right Reserved.