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NBT Bancorp Inc. Announces Record Net Income of $78.4 Million; Declares Cash Dividend

01/23/17

NORWICH, N.Y., Jan. 23, 2017 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the year ended December 31, 2016 of $78.4 million, up from $76.4 million from the prior year.  Earnings per diluted share for the year ended December 31, 2016 was $1.80, up from $1.72 for the prior year. 

Net income for the three months ended December 31, 2016 was $19.6 million, up from $19.1 million for the same period last year.  Diluted earnings per share for the three months ended December 31, 2016 was $0.45, up from $0.43 for the same period last year. 

2016 Highlights:

  • EPS increased 4.7% over prior year
     
  • Loan growth of 5.4%
     
  • Average demand deposits up 10.1% from 2015
     
  • Improved operating efficiencies resulting in flat noninterest expense year over year

“NBT completed an excellent 2016, posting record net income for the fourth consecutive year. This accomplishment was driven by our strong growth in loans, deposits and fee income generation, all of which can be attributed the hard work of our customer-focused team,” said President and CEO John H. Watt Jr. “As we move forward in 2017, we will build on the momentum initiated and led by my predecessor, Marty Dietrich, and we will focus on executing on our defined strategies that are grounded in organic growth as our team continues to collaborate to deliver returns for the benefit of our shareholders.”

Net interest income was $264.4 million for the year ended December 31, 2016, up $11.8 million, or 4.7%, from 2015.  Fully taxable equivalent (“FTE”) net interest margin was 3.43% for the year ended December 31, 2016, down from 3.50% for the year ended December 31, 2015.  Average interest earning assets were up $510.5 million, or 7.0%, for the year ended December 31, 2016 as compared to 2015.  This increase from last year was driven primarily by $314.9, or 5.4%, loan growth and a $220.7 million, or 13.4%, increase in investment securities in 2016.  The benefit of earning asset growth was partially offset by a 6 basis points (“bps”) decrease in earning asset yields, driven by a 5 bp decrease in loan yields from 2015 to 2016.  Average interest bearing liabilities increased $330.7 million, or 6.4%, from the year ended December 31, 2015 to the year ended December 31, 2016.  Total average deposits increased $373.2 million, or 5.8%, for the year ended December 31, 2016 as compared to the prior year, driven primarily by a 10.1% increase in non-interest bearing demand deposits, as well as increases in money market deposit accounts, NOW and savings deposits in 2016.  Average short-term borrowings increased $157.8 million for the year ended December 31, 2016 as compared to the prior year funding earning asset growth.  The rates paid on interest bearing liabilities increased by 1 bp for the year ended December 31, 2016 as compared to 2015. 

Net interest income was $67.4 million for the fourth quarter of 2016, up $0.8 million, or 1.1%, from the previous quarter and up $3.9 million, or 6.2%, from the fourth quarter of 2015.  FTE net interest margin was 3.41% for the three months ended December 31, 2016, up from 3.40% for the previous quarter and down from 3.42% for the fourth quarter of 2015.  Average interest earning assets were up $71.0 million, or 0.9%, for the fourth quarter of 2016 as compared to the prior quarter and up $521.5 million, or 7.0%, from the same period in 2015.  The increases from the third quarter of 2016 and the fourth quarter of 2015 were driven primarily by growth in both loans and investments.  Yields on earning assets remained consistent in the third and fourth quarters of 2016 at 3.69% and decreased by 1 bp from 3.70% in the fourth quarter of 2015.   Average interest bearing liabilities increased $13.3 million, or 0.2%, from the third quarter of 2016, and $332.5 million, or 6.4%, to the fourth quarter of 2016.  The rate paid on interest bearing liabilities was 0.41% for the fourth quarter of 2016, compared to 0.42% paid in the prior quarter and 0.40% in the fourth quarter of 2015.

Noninterest income for the year ended December 31, 2016 was $115.7 million, down $2.8 million, or 2.3%, from the year ended December 31, 2015. The decrease was primarily due to the gain of $4.2 million recognized in the third quarter of 2015 from the 2014 sale of Springstone LLC. In addition, net securities income was down $3.7 million from 2015 due to a $0.7 million securities loss in 2016 versus a net securities gain for $3.0 million in 2015. The decreases were offset by increases in retirement plan and administration fees, other noninterest income, ATM and debit card fees, bank owned life insurance income and insurance and other financial services revenue. Retirement plan administration fees were up $1.9 million, or 13.6%, from 2015 due primarily to the 2015 fourth quarter acquisition of Third Party Administrators, Inc. and the 2016 third quarter acquisition of Actuarial Designs & Solutions, Inc. Other noninterest income was up $1.8 million, or 12.4%, primarily due to higher swap fee income in 2016 than in 2015, an increase in mortgage banking income and a $0.9 million gain on the sale of equity investments for compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act in the third quarter of 2016.

Noninterest income for the three months ended December 31, 2016 was $28.1 million, down $1.6 million, or 5.2%, from the prior quarter and down $4.4 million, or 13.5%, from the fourth quarter of 2015.  The decrease from the third quarter of 2016 is primarily due to the aforementioned $0.7 million securities loss and decreases in insurance and other financial services revenue in the fourth quarter of 2016. In addition, other noninterest income decreased from the third quarter of 2016 due to lower mortgage banking income and swap fees that were offset by an equity investment dividend. Net securities income was down $3.7 million from 2015 due to the aforementioned $0.7 million securities loss versus a net securities gain of $3.0 million in the fourth quarter of 2015.   Other noninterest income decreased from the fourth quarter of 2015 due to a $1.6 million favorable settlement of an accrual in the fourth quarter of 2015 offset by higher swap fees in the fourth quarter of 2016.

Noninterest expense for the year ended December 31, 2016 was $235.9 million, down $0.3 million, or 0.1%, from 2015.  This decrease was driven by lower other noninterest expense during 2016 than 2015 primarily due to reorganization expenses incurred during the third quarter of 2015, offset by higher salaries and employee benefits expense in 2016.  Salaries and employee benefits expense increased $5.4 million, or 4.3%, from 2015 to 2016, due to higher salaries and medical insurance costs that were partially offset by lower pension credit and contract termination costs. Income tax expense for 2016 was $40.4 million, up $0.2 million, or 0.5%, from the prior year.  The effective tax rate was 34.0% for 2016 down from 34.5% for 2015.

Noninterest expense for the three months ended December 31, 2016 was $57.6 million, down $2.0 million, or 3.3%, from the previous quarter and down $3.0 million, or 4.9%, from the same period in 2015.  The decrease from the prior quarter is due to lower other operating expenses, primarily due to a $1.4 million favorable accrual adjustment and lower salaries and employee benefits expenses partially offset by higher professional and outside services in the fourth quarter of 2016. The decrease from the fourth quarter of 2015 is due to lower salaries and employee benefits expenses due primarily to contract termination costs in the fourth quarter of 2015 and lower other operating expenses in the fourth quarter of 2016 due to the aforementioned favorable accrual adjustment.  Income tax expenses for the three month period ended December 31, 2016 was $10.1 million, down $0.2 million, or 2.0%, from the third quarter of 2016, and down $0.4 million, or 3.4%, from the fourth quarter of 2015. The effective tax rate of 34.0% for the fourth quarter of 2016 was consistent with the prior quarter and down from 35.3% for the fourth quarter of 2015.

Asset Quality

Net charge-offs were $23.2 million for the year ended December 31, 2016, up from $21.6 million for the year ended December 31, 2015.  Provision expense was $25.4 million for the year ended December 31, 2016, as compared with $18.3 million for 2015; the increase in provision expense was primarily due to loan growth. Net charge-offs to average loans for 2016 was 0.39%, compared with 0.38% for 2015.

Net charge-offs were $8.6 million for the three months ended December 31, 2016, up from $5.3 million for the prior quarter and up from $7.6 million for the fourth quarter of 2015.  In the prior quarter, higher charge-offs from the commercial and consumer portfolios accounted for the increase.  Commercial loans charge-offs were elevated due to the write-down of an individual credit that was previously identified and provided for which was subsequently transferred into other real estate owned. Charge-offs increased from the fourth quarter of 2015 due to higher consumer loan charge-offs than the same quarter of 2015. Provision expense was $8.2 million for the three months ended December 31, 2016, as compared with $6.4 million for the prior quarter and $5.8 million for the fourth quarter of 2015; the increases in provision expense were primarily due to loan growth and the higher level of charge-offs in 2016 than in 2015.  Annualized net charge-offs to average loans for the fourth quarter of 2016 was 0.56%, compared with 0.35% for the third quarter of 2016 and 0.51% for the fourth quarter of 2015.

Nonperforming loans to total loans was 0.65% at December 31, 2016, down from 0.73% at September 30, 2016 and up from 0.64% at December 31, 2015.  Past due loans as a percentage of total loans were 0.64% at December 31, 2016, up from 0.57% at September 30, 2016 and up from 0.62% at December 31, 2015.   

The allowance for loan losses totaled $65.2 million at December 31, 2016, compared to $65.7 million at September 30, 2016 and $63.0 million at December 31, 2015.  The allowance for loan losses as a percentage of loans was 1.05% (1.13% excluding acquired loans with no related allowance recorded) at December 31, 2016, compared to 1.07% (1.15% excluding acquired loans with no related allowance recorded) at September 30, 2016 and 1.07% (1.18% excluding acquired loans with no related allowance recorded) at December 31, 2015. 

Balance Sheet

Total assets were $8.9 billion at December 31, 2016, up $604.6 million, or 7.3% from December 31, 2015.  Loans were $6.2 billion at December 31, 2016, up $314.9 million, or 5.4% from December 31, 2015.  Total deposits were $7.0 billion at December 31, 2016, up $368.8 million, or 5.6%, from December 31, 2015.  Stockholders’ equity was $913.3 million, representing a total equity-to-total assets ratio of 10.30% at December 31, 2016, compared with $882.0 million or a total equity-to-total assets ratio of 10.67% at December 31, 2015.

Stock Repurchase Program

The Company purchased 675,535 shares of its common stock during the year ended December 31, 2016 at an average price of $25.45 per share under a previously announced plan that expired on December 31, 2016.  On March 28, 2016, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to 1,000,000 shares of its outstanding common stock. This plan expires on December 31, 2017.

Dividend

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

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.9 billion at December 31, 2016.  The company primarily operates through NBT Bank, N.A., a full-service community bank and through two financial services companies.  NBT Bank, N.A. has 154 banking locations with offices in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT-Mang Insurance Agency, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtmang.com.

Forward-Looking Statements

This news release contains forward-looking statements.  These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made.  There are a number of factors, many of which are beyond NBT’s control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation.  Forward-looking statements speak only as of the date they are made.  Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP).  These measures adjust GAAP measures to exclude the effects of acquisition related intangible amortization expense on earnings and equity as well as providing a fully taxable equivalent yield on securities and loans.  Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables.  Management believes that these non-GAAP measures provided useful information that is important to an understanding of the results of NBT’s core business as well as provide information standard in the financial institution industry.  Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

NBT Bancorp Inc. and Subsidiaries                
SELECTED FINANCIAL DATA            
(unaudited, dollars in thousands except per share data)            
             
    2016     2015      
Profitability: 4th Q 3rd Q 2nd Q 1st Q 4th Q      
Diluted Earnings Per Share $ 0.45   $ 0.46   $ 0.46   $ 0.43   $ 0.43        
Weighted Average Diluted                
Common Shares Outstanding   43,703,122     43,562,489     43,453,674     43,707,489     44,072,049        
Return on Average Assets (1)   0.89 %   0.92 %   0.94 %   0.92 %   0.93 %      
Return on Average Equity (1)   8.54 %   8.80 %   9.00 %   8.63 %   8.58 %      
Return on Average Tangible Common Equity (1)(3)   12.68 %   13.16 %   13.54 %   13.17 %   13.04 %      
Net Interest Margin (1)(2)   3.41 %   3.40 %   3.44 %   3.47 %   3.42 %  
             
  12 Months ended December 31,        
Profitability:   2016     2015          
Diluted Earnings Per Share $ 1.80   $ 1.72          
Weighted Average Diluted                
Common Shares Outstanding   43,621,848     44,389,356          
Return on Average Assets    0.92 %   0.96 %        
Return on Average Equity    8.74 %   8.70 %        
Return on Average Tangible Common Equity (4)   13.13 %   13.31 %        
Net Interest Margin (2)   3.43 %   3.50 %        
             
(1) Annualized                
(2) Calculated on a Fully Taxable Equivalent ("FTE") basis              
(3) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:  
                 
    2016     2015        
  4th Q 3rd Q 2nd Q 1st Q 4th Q      
Net Income $ 19,608   $ 20,001   $ 19,909   $ 18,891   $ 19,127    
Amortization of intangible assets (net of tax)   582     582     567     670     750    
  $ 20,190   $ 20,583   $ 20,476   $ 19,561   $ 19,877    
             
Average stockholders' equity $ 913,850   $ 904,445   $ 890,053   $ 880,311   $ 884,743    
Less: average goodwill and other intangibles   280,275     282,307     281,709     282,751     279,904    
Average tangible common equity $ 633,575   $ 622,138   $ 608,344   $ 597,560   $ 604,839    
             
(4) Non-GAAP measure - 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,        
    2016     2015          
Net Income $ 78,409   $ 76,425              
Amortization of intangible assets (net of tax)   2,400     2,971              
  $ 80,809   $ 79,396              
                 
Average stockholders' equity $ 897,230   $ 878,110              
Less: average goodwill and other intangibles   281,758     281,671              
Average tangible common equity $ 615,472   $ 596,439              
             
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.      
             

 

NBT Bancorp Inc. and Subsidiaries            
SELECTED FINANCIAL DATA            
(unaudited, dollars in thousands except per share data)            
             
             
    2016     2015    
  4th Q 3rd Q 2nd Q 1st Q 4th Q  
Balance Sheet Data:            
Securities Available for Sale $    1,338,290   $   1,288,899   $   1,271,596   $   1,259,874   $   1,174,544    
Securities Held to Maturity     527,948       485,877       500,840       466,914       471,031    
Net Loans     6,132,857       6,094,517       5,974,825       5,903,491       5,820,115    
Total Assets     8,867,268       8,773,024       8,624,780       8,472,964       8,262,646    
Total Deposits     6,973,688       6,949,238       6,740,416       6,905,042       6,604,843    
Total Borrowings     886,986       800,367       877,926       579,441       674,124    
Total Liabilities     7,953,952       7,863,675       7,728,427       7,591,237       7,380,642    
Stockholders' Equity     913,316       909,349       896,353       881,727       882,004    
             
Asset Quality:            
Nonaccrual Loans $    35,712   $   40,716   $   37,397   $   38,944   $   33,744    
90 Days Past Due and Still Accruing     4,810       4,444       1,613       2,185       3,662    
Total Nonperforming Loans     40,522       45,160       39,010       41,129       37,406    
Other Real Estate Owned     5,581       2,501       2,211       2,716       4,666    
Total Nonperforming Assets     46,103       47,661       41,221       43,845       42,072    
Allowance for Loan Losses     65,200       65,668       64,568       64,318       63,018    
             
Asset Quality Ratios (Total):            
Allowance for Loan Losses to Total Loans   1.05 %   1.07 %   1.07 %   1.08 %   1.07 %  
Total Nonperforming Loans to Total Loans   0.65 %   0.73 %   0.65 %   0.69 %   0.64 %  
Total Nonperforming Assets to Total Assets   0.52 %   0.54 %   0.48 %   0.52 %   0.51 %  
Allowance for Loan Losses to Total Nonperforming Loans   160.90 %   145.41 %   165.52 %   156.38 %   168.47 %  
Past Due Loans to Total Loans   0.64 %   0.57 %   0.60 %   0.50 %   0.62 %  
Net Charge-Offs to Average Loans (1)   0.56 %   0.35 %   0.30 %   0.33 %   0.51 %  
             
Asset Quality Ratios (Originated) (2):            
Allowance for Loan Losses to Loans   1.13 %   1.15 %   1.16 %   1.18 %   1.18 %  
Nonperforming Loans to Loans   0.61 %   0.68 %   0.62 %   0.67 %   0.61 %  
Allowance for Loan Losses to Nonperforming Loans   186.82 %   168.52 %   186.71 %   175.40 %   193.00 %  
Past Due Loans to Loans   0.66 %   0.56 %   0.61 %   0.51 %   0.64 %  
             
Capital:            
Equity to Assets   10.30 %   10.37 %   10.39 %   10.41 %   10.67 %  
Book Value Per Share $    21.11   $   21.08   $   20.85   $   20.57   $   20.31    
Tangible Book Value Per Share (3) $    14.61   $   14.57   $   14.31   $   13.99   $   13.79    
Tier 1 Leverage Ratio   9.11 %   9.05 %   9.03 %   9.15 %   9.44 %  
Common Equity Tier 1 Capital Ratio   9.98 %   9.84 %   9.83 %   9.79 %   10.20 %  
Tier 1 Capital Ratio   11.42 %   11.28 %   11.29 %   11.28 %   11.73 %  
Total Risk-Based Capital Ratio   12.39 %   12.27 %   12.29 %   12.29 %   12.74 %  
Common Stock Price (End of Period) $    41.88   $   32.87   $   28.63   $   26.95   $   27.88    
             
(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)    
     
  December 31, December 31,
ASSETS   2016   2015
Cash and due from banks $    147,789 $ 130,593
Short term interest bearing accounts     1,392   9,704
Securities available for sale, at fair value     1,338,290   1,174,544
Securities held to maturity (fair value of $525,049 and $473,140 at     527,948   471,031
December 31, 2016 and December 31, 2015, respectively)    
Trading securities     9,259   8,377
Federal Reserve and Federal Home Loan Bank stock     47,033   36,673
Loans     6,198,057   5,883,133
Less allowance for loan losses     65,200   63,018
Net loans   6,132,857   5,820,115
Premises and equipment, net     84,187   88,826
Goodwill     265,439   265,957
Intangible assets, net     15,815   17,265
Bank owned life insurance     168,012   117,044
Other assets     129,247   122,517
TOTAL ASSETS $    8,867,268 $ 8,262,646
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Deposits:    
Demand (noninterest bearing) $    2,195,845 $ 1,998,165
Savings, NOW, and money market     3,905,432   3,697,851
Time     872,411   908,827
Total deposits   6,973,688   6,604,843
Short-term borrowings     681,703   442,481
Long-term debt     104,087   130,447
Junior subordinated debt     101,196   101,196
Other liabilities     93,278   101,675
Total liabilities   7,953,952   7,380,642
     
Total stockholders' equity     913,316   882,004
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    8,867,268 $ 8,262,646
     

 

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,  
    2016     2015     2016     2015  
Interest, fee and dividend income:            
Loans $    63,901   $ 60,781   $    250,994   $ 241,828  
Securities available for sale   6,057     5,204       24,033     20,418  
Securities held to maturity   2,524     2,317       9,852     9,233  
Other   627     469       2,068     1,745  
Total interest, fee and dividend income     73,109     68,771       286,947     273,224  
Interest expense:            
Deposits   3,557     3,613       14,366     14,257  
Short-term borrowings   641     222       2,309     783  
Long-term debt   779     848       3,204     3,355  
Junior subordinated debt   707     576       2,627     2,221  
Total interest expense     5,684     5,259       22,506     20,616  
Net interest income     67,425     63,512       264,441     252,608  
Provision for loan losses   8,165     5,779       25,431     18,285  
Net interest income after provision for loan losses     59,260     57,733       239,010     234,323  
Noninterest income:            
Insurance and other financial services revenue   5,711     6,139       24,396     24,211  
Service charges on deposit accounts   4,270     4,350       16,729     17,056  
ATM and debit card fees   4,868     4,541       19,448     18,248  
Retirement plan administration fees   4,126     4,135       16,063     14,146  
Trust fees   4,717     4,769       18,565     19,026  
Bank owned life insurance income   1,297     916       5,195     4,334  
Net securities (losses) gains     (674 )   3,044       (644 )   3,087  
Gain on the sale of Springstone investment     -      -       -      4,179  
Other   3,773     4,577       15,961     14,194  
Total noninterest income     28,088     32,471       115,713     118,481  
Noninterest expense:            
Salaries and employee benefits   31,547     33,078       129,702     124,318  
Occupancy   5,160     5,291       20,940     22,095  
Data processing and communications   4,141     3,990       16,495     16,588  
Professional fees and outside services   3,712     3,378       13,617     13,407  
Equipment   3,632     3,491       14,295     13,408  
Office supplies and postage   1,507     1,545       6,168     6,367  
FDIC insurance     1,273     1,312       5,111     5,145  
Advertising   823     780       2,556     2,654  
Amortization of intangible assets   952     1,228       3,928     4,864  
Loan collection and other real estate owned   923     1,027       3,458     2,620  
Other operating   3,969     5,499       19,652     24,710  
Total noninterest expense   57,639     60,619     235,922     236,176  
Income before income taxes   29,709     29,585     118,801     116,628  
Income taxes   10,101     10,458       40,392     40,203  
Net income $    19,608   $ 19,127   $    78,409   $ 76,425  
Earnings Per Share:            
Basic $    0.45   $ 0.44   $    1.81   $ 1.74  
Diluted $    0.45   $ 0.43   $    1.80   $ 1.72  
             


NBT Bancorp Inc. and Subsidiaries          
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)          
           
    2016   2015
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Interest, fee and dividend income:          
Loans $   63,901   $   63,414 $ 62,449 $ 61,230 $ 60,781
Securities available for sale   6,057     6,013   5,976   5,987   5,204
Securities held to maturity   2,524     2,544   2,496   2,288   2,317
Other   627     538   454   449   469
Total interest, fee and dividend income   73,109     72,509   71,375   69,954   68,771
Interest expense:          
Deposits   3,557     3,607   3,605   3,597   3,613
Short-term borrowings   641     761   579   328   222
Long-term debt   779     819   773   833   848
Junior subordinated debt   707     660   641   619   576
Total interest expense   5,684     5,847   5,598   5,377   5,259
Net interest income   67,425     66,662   65,777   64,577   63,512
Provision for loan losses   8,165     6,388   4,780   6,098   5,779
Net interest income after provision for loan losses   59,260     60,274   60,997   58,479   57,733
Noninterest income:          
Insurance and other financial services revenue   5,711     6,114   5,625   6,946   6,139
Service charges on deposit accounts   4,270     4,354   4,166   3,939   4,350
ATM and debit card fees   4,868     5,063   4,934   4,583   4,541
Retirement plan administration fees   4,126     4,129   4,054   3,754   4,135
Trust fees   4,717     4,535   4,937   4,376   4,769
Bank owned life insurance income   1,297     1,336   1,271   1,291   916
Net securities (losses) gains     (674 )     -    1   29   3,044
Gain on the sale of Springstone investment     -        -    -   -   -
Other   3,773     4,113   4,626   3,449   4,577
Total noninterest income   28,088     29,644   29,614   28,367   32,471
Noninterest expense:          
Salaries and employee benefits   31,547     32,783   32,931   32,441   33,078
Occupancy   5,160     5,035   5,254   5,491   5,291
Data processing and communications   4,141     4,183   4,121   4,050   3,990
Professional fees and outside services   3,712     3,343   3,331   3,231   3,378
Equipment   3,632     3,656   3,547   3,460   3,491
Office supplies and postage   1,507     1,438   1,676   1,547   1,545
FDIC insurance   1,273     1,287   1,293   1,258   1,312
Advertising   823     634   595   504   780
Amortization of intangible assets   952     952   928   1,096   1,228
Loan collection and other real estate owned   923     985   845   705   1,027
Other operating   3,969     5,318   5,924   4,441   5,499
Total noninterest expense   57,639     59,614   60,445   58,224   60,619
Income before income taxes   29,709     30,304   30,166   28,622   29,585
Income taxes   10,101     10,303   10,257   9,731   10,458
Net income $   19,608   $   20,001 $ 19,909 $ 18,891 $ 19,127
Earnings per share:          
Basic $   0.45   $   0.46 $ 0.46 $ 0.44 $ 0.44
Diluted $   0.45   $   0.46 $ 0.46 $ 0.43 $ 0.43
           
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  
Three Months ended,  Q4 - 2016 Q3 - 2016 Q2 - 2016 Q1 - 2016 Q4 - 2015  
ASSETS:                      
Short-term interest bearing accounts $    14,190 0.64 % $ 21,279 0.54 % $ 16,063 0.53 % $ 13,639 0.63 % $ 13,494 0.34 %  
Securities available for sale (1)(2)     1,277,931 1.92 %   1,257,335 1.93 %   1,227,367 1.99 %   1,188,437 2.06 %   1,070,643 1.97 %  
Securities held to maturity (1)     492,415 2.54 %   494,400 2.54 %   498,493 2.49 %   465,916 2.48 %   470,027 2.43 %  
Investment in FRB and FHLB Banks     39,448 6.09 %   43,552 4.65 %   38,939 4.47 %   33,470 5.14 %   32,263 5.63 %  
Loans (3)     6,155,985 4.14 %   6,092,371 4.15 %   6,007,677 4.19 %   5,884,073 4.20 %   5,872,011 4.12 %  
Total interest earning assets $   7,979,969 3.69 % $ 7,908,937 3.69 % $ 7,788,539 3.73 % $ 7,585,535 3.75 % $ 7,458,438 3.70 %  
Other assets     760,563     754,813     747,074     699,194     693,981    
Total assets $   8,740,532   $ 8,663,750   $ 8,535,613   $ 8,284,729   $ 8,152,419    
                       
LIABILITIES AND STOCKHOLDERS' EQUITY:                      
Money market deposit accounts $ 1,674,119 0.21 % $ 1,636,815 0.22 % $ 1,709,644 0.22 % $ 1,653,930 0.22 % $ 1,626,644 0.22 %  
NOW deposit accounts     1,130,578 0.05 %   1,053,590 0.05 %   1,073,881 0.05 %   1,051,959 0.05 %   1,039,563 0.05 %  
Savings deposits     1,145,352 0.06 %   1,146,013 0.06 %   1,143,654 0.06 %   1,105,480 0.06 %   1,079,757 0.06 %  
Time deposits     890,506 1.06 %   902,185 1.07 %   906,250 1.06 %   921,754 1.04 %   918,875 1.05 %  
Total interest bearing deposits $   4,840,555 0.29 % $ 4,738,603 0.30 % $ 4,833,429 0.30 % $ 4,733,123 0.31 % $ 4,664,839 0.31 %  
Short-term borrowings     523,708 0.49 %   611,339 0.50 %   484,590 0.48 %   369,443 0.36 %   332,742 0.26 %  
Long-term debt     109,656 2.83 %   110,703 2.94 %   124,851 2.55 %   130,420 2.57 %   130,522 2.58 %  
Junior subordinated debt     101,196 2.78 %   101,196 2.59 %   101,196 2.49 %   101,196 2.46 %   101,196 2.26 %  
Total interest bearing liabilities $   5,575,115 0.41 % $ 5,561,841 0.42 % $ 5,544,066 0.41 % $ 5,334,182 0.41 % $ 5,229,299 0.40 %  
Demand deposits     2,136,310     2,079,266     1,994,601     1,970,315     1,944,820    
Other liabilities     115,258     118,198     106,893     99,921     93,557    
Stockholders' equity     913,849     904,445     890,053     880,311     884,743    
Total liabilities and stockholders' equity $   8,740,532   $ 8,663,750   $ 8,535,613   $ 8,284,729   $ 8,152,419    
                       
Interest rate spread   3.29 %   3.27 %   3.32 %   3.34 %   3.30 %  
Net interest margin   3.41 %   3.40 %   3.44 %   3.47 %   3.42 %  
                       
(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 Fully Taxable-Equivalent ("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   
Twelve Months ended December 31,    2016     2015    
ASSETS:              
Short-term interest bearing accounts $    16,301 $    95 0.58 % $   10,157 $   33 0.33 %  
Securities available for sale (1)(2)     1,237,930     24,450 1.98 %     1,059,284     20,888 1.97 %  
Securities held to maturity (1)     487,837     12,255 2.51 %     459,589     11,296 2.46 %  
Investment in FRB and FHLB Banks     38,867     1,973 5.08 %     33,044     1,712 5.18 %  
Loans (3)     6,035,513     251,723 4.17 %     5,743,860     242,587 4.22 %  
Total interest earning assets $    7,816,448 $    290,496 3.72 %     7,305,934 $   276,516 3.78 %  
Other assets     740,506         691,583      
Total assets $    8,556,954     $   7,997,517      
               
LIABILITIES AND STOCKHOLDERS' EQUITY:              
Money market deposit accounts $    1,668,555 $    3,599 0.22 % $   1,582,078 $   3,351 0.21 %  
NOW deposit accounts     1,077,581     546 0.05 %     987,638     515 0.05 %  
Savings deposits     1,135,182     652 0.06 %     1,071,753     651 0.06 %  
Time deposits     905,126     9,569 1.06 %     960,188     9,740 1.01 %  
Total interest bearing deposits $    4,786,444 $    14,366 0.30 % $   4,601,657 $   14,257 0.31 %  
Short-term borrowings     497,654     2,309 0.46 %     339,885     783 0.23 %  
Long-term debt     118,860     3,204 2.70 %     130,705     3,355 2.57 %  
Junior subordinated debt     101,196     2,627 2.60 %     101,196     2,221 2.19 %  
Total interest bearing liabilities $    5,504,154 $    22,506 0.41 % $   5,173,443 $   20,616 0.40 %  
Demand deposits     2,045,465         1,857,027      
Other liabilities     110,105         88,937      
Stockholders' equity     897,230         878,110      
Total liabilities and stockholders' equity $    8,556,954     $   7,997,517      
Net interest income (FTE)       267,990         255,900    
Interest rate spread     3.31 %     3.38 %  
Net interest margin     3.43 %     3.50 %  
Taxable equivalent adjustment       3,549         3,292    
Net interest income   $    264,441     $   252,608    
               
(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 Fully Taxable-Equivalent ("FTE") basis using the statutory Federal income tax rate of 35%  
 

 

NBT Bancorp Inc. and Subsidiaries          
CONSOLIDATED LOAN BALANCES
(unaudited, dollars in thousands)          
           
           
    2016   2015
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Residential real estate mortgages $    1,262,614 $   1,240,337 $   1,219,388 $   1,211,821 $   1,196,780
Commercial     1,242,701     1,252,644     1,176,008     1,168,191     1,159,089
Commercial real estate     1,543,301     1,528,498     1,497,683     1,448,920     1,430,618
Consumer     1,641,657     1,625,294     1,629,836     1,620,669     1,568,204
Home equity     507,784     513,412     516,478     518,208     528,442
  Total loans $    6,198,057 $   6,160,185 $   6,039,393 $   5,967,809 $   5,883,133
           


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.
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