NBT Bancorp Inc. Announces Third Quarter Net Income of $39.0 Million ($0.90 Per Diluted Common Share); Approves Dividend
Net income for the three months ended
CEO Comments
“We are very pleased with our operating results for the third quarter and first nine months of 2022, which reflect strong execution by our team including solid organic loan growth and disciplined cost of funds management. With additional increases in the targeted Fed Funds rate, we continue to experience the benefits of an asset-sensitive balance sheet,” said NBT President and CEO
Third Quarter Financial Highlights
Net Income |
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Net Interest Income / NIM |
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Noninterest Income |
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Pre-Provision Net Revenue (“PPNR”) |
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Loans and Credit Quality |
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Capital |
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Loans
- Period end total loans were
$7.90 billion atSeptember 30, 2022 and$7.50 billion atDecember 31, 2021 . - Excluding PPP loans, period end loans increased
$504.2 million fromDecember 31, 2021 . Commercial and industrial loans increased$103.6 million to$1.26 billion ; commercial real estate loans increased$69.4 million to$2.72 billion ; and total consumer loans increased$331.2 million to$3.92 billion . - Total PPP loans as of
September 30, 2022 were$3.3 million (net of unamortized fees) with over 99% of the original$836 million forgiven or extinguished through the third quarter of 2022. The following PPP loan activity occurred during the third quarter of 2022:
$14.2 million of loans forgiven.$0.3 million of interest and fees recognized into interest income, compared to$1.3 million for the second quarter of 2022 and$2.9 million for the third quarter of 2021.
- Commercial line of credit utilization rate was 23% at
September 30, 2022 andJune 30, 2022 , compared to 21% atSeptember 30, 2021 .
Deposits
- Total deposits at
September 30, 2022 were$9.92 billion , compared to$10.23 billion atDecember 31, 2021 , representing a 3% decline, which included a$100.0 million brokered deposit secured for liquidity uncertainty purposes early in the pandemic that matured in the prior quarter and declines in money markets deposits driven by certain large customers moving approximately $100 million of their deposit balances to an off-balance sheet, Company-designated short-term treasury product. - Loan to deposit ratio was 79.7% at
September 30, 2022 , compared to 73.3% atDecember 31, 2021 .
Net Interest Income and Net Interest Margin
- Net interest income for the third quarter of 2022 was
$94.5 million , which was up$6.9 million , or 7.9%, from the second quarter of 2022 and up$16.8 million , or 21.6%, from the third quarter of 2021 primarily due to higher yields on earning assets. PPP income for the third quarter of 2022 was$0.3 million , which was$1.0 million lower compared to the prior quarter and down$2.5 million compared to the third quarter of 2021. - The NIM on a FTE basis for the third quarter of 2022 was 3.51%, up 30 bps from the second quarter of 2022 and up 63 bps from the third quarter of 2021 due to higher earning asset yields partly offset by higher cost of interest-bearing liabilities.
- Earning asset yields for the three months ended
September 30, 2022 were up 33 bps from the prior quarter and up 63 bps from the same quarter in the prior year. Earning assets declined$255.7 million , or 2.3%, from the prior quarter and were comparable to the same quarter in the prior year. The following are highlights comparing the third quarter of 2022 to the prior quarter:
- Loan yields increased 25 bps to 4.34% for the quarter. Excluding PPP loans, loan yields increased 28 bps from the prior quarter.
- The average balances of investment securities increased
$5.9 million and yields increased 13 bps. - The average balances of short-term interest-bearing accounts decreased
$362.1 million resulting from the incremental deployment of excess liquidity into loans and investment securities and modestly lower deposit balances.
- Total cost of deposits was 0.09% for the third quarter of 2022, up 2 bps from the prior quarter and down 1 bp from the same period in the prior year.
- The cost of total interest-bearing liabilities for the three months ended
September 30, 2022 was 0.29%, up 6 bps from the prior quarter and up 2 bps from the third quarter of 2021.
Credit Quality and Allowance for Credit Losses
- Net charge-offs to total average loans was 7 bps compared to 4 bps in the prior quarter and 11 bps in the third quarter of 2021. Recoveries in the third quarter of 2022 were
$3.4 million compared to$3.3 million in the prior quarter and$2.7 million in the third quarter of 2021. - Nonperforming assets to total assets was 0.19% compared to 0.22% at
June 30, 2022 and 0.33% atSeptember 30, 2021 . Past due loans to total loans decreased to 0.30% as ofSeptember 30, 2022 from 0.40% in the prior quarter, primarily due to one commercial credit which returned to current status in early July. - Provision expense for the three months ended
September 30, 2022 was$4.5 million with net charge-offs of$1.3 million . Provision expense was$0.1 million higher than the second quarter of 2022 and$7.8 million higher than the third quarter of 2021. The increase in provision expense from the third quarter of 2021 was driven both by loan growth and an increase in the level of allowance for loan losses resulting from less favorable economic forecasts in the current year relative to improving economic forecasts in the prior year, partly offset by a lower level of net charge-offs. - The allowance for loan losses was
$96.8 million , or 1.22% (1.23% excluding PPP loans and related allowance) of total loans, atSeptember 30, 2022 , compared to 1.20% (1.21% excluding PPP loans and related allowance) of total loans atJune 30, 2022 and 1.23% (1.28% excluding PPP loans and related allowance) of total loans atSeptember 30, 2021 . The increase in the level of allowance for loan losses from the prior quarter was primarily due to the increase in loan balances and the modest deterioration in the forecast of economic conditions, which had an impact on the level of expected credit losses. - The reserve for unfunded loan commitments increased to
$5.3 million atSeptember 30, 2022 compared to the prior quarter at$5.1 million and compared to the prior year quarter at$5.3 million .
Noninterest Income
- Total noninterest income, excluding securities gains (losses), was
$37.3 million for the three months endedSeptember 30, 2022 , down$4.9 million from the second quarter and down$3.1 million from the prior year’s third quarter. - Card services income was lower than the prior quarter and the third quarter of 2021 driven by the
$3.8 million ($0.07 per diluted share) impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act. - Retirement plan administration fees were lower than the prior quarter driven by market decline and lower activity-based fees and higher than the third quarter of 2021 driven by higher activity-based fees and organic growth.
- Wealth management fees were higher than the prior quarter due to seasonal tax preparation services and lower than the third quarter of 2021 driven primarily by market performance.
- Other income decreased from the prior quarter and the third quarter of 2021 driven by lower commercial loan swap fees.
Noninterest Expense
- Total noninterest expense for the third quarter of 2022 was up 0.8% from the previous quarter and up 5.2% from the third quarter of 2021.
- Salaries and benefits increased from the prior quarter due to one additional day of payroll in the third quarter and higher levels of incentive compensation accruals. The increase from the third quarter of 2021 was driven by increased salaries and wages, including merit pay increases and higher levels of incentive compensation accruals.
- Technology and data services increased from the prior quarter and the third quarter of 2021 due to continued investment in digital platform solutions.
- Other expenses decreased from the linked second quarter of 2022 due to seasonal timing of certain expenditures. The third quarter of 2021 also included
$2.3 million of estimated litigation settlement costs.
Income Taxes
- The effective tax rate was 22.8% for the third quarter of 2022 compared to 22.5% for the second quarter of 2022 and 22.8% for the third quarter of 2021.
Capital
- Capital ratios remain strong with tangible common equity to tangible assets1 at 7.64%. Tangible book value per share2 was
$20.25 atSeptember 30, 2022 ,$20.99 atJune 30, 2022 and$21.95 atSeptember 30, 2021 . - Stockholders’ equity decreased
$93.9 million fromDecember 31, 2021 driven by the$160.9 million decrease in AOCI due to the change in the market value of securities available for sale, dividends declared of$36.9 million and the repurchase of common stock of$14.7 million , partly offset by net income generation of$115.9 million . September 30, 2022 , CET1 capital ratio of 12.17%, leverage ratio of 10.21% and total risk-based capital ratio of 15.50%.
Dividend
- The Board of Directors approved a fourth-quarter cash dividend of
$0.30 per share at a meeting held yesterday, an increase of$0.02 , or 7.1%, from the amount paid in the fourth quarter of 2021. 2022 is the tenth consecutive year of dividend increases by the Company. The dividend will be paid onDecember 15, 2022 to stockholders of record as ofDecember 1, 2022 .
Other Events
- On
August 1, 2022 , NBT’s subsidiary,NBT Insurance Agency, LLC , a full-service insurance agency, completed the acquisition of substantially all of the assets ofHarrison A. Rogers Agency, Inc. (“H.A. Rogers”).H.A. Rogers is aNew York based small personal and commercial lines property and casualty insurance agency. This is a strategic regional insurance expansion into the northernNew York market whereNBT Bank has a long-established presence.
Conference Call and Webcast
The Company will host a conference call at
Corporate Overview
Forward-Looking Statements
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by 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) local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the
One of the more significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, the impact of the COVID-19 pandemic on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others.
The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the
Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in
Contact:
607-337-6589
Selected Financial Data | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2022 | 2021 | ||||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Profitability: | |||||||||||||||
Diluted earnings per share | $ | 0.90 | $ | 0.88 | $ | 0.90 | $ | 0.86 | $ | 0.86 | |||||
Weighted average diluted common shares outstanding | 43,110,932 | 43,092,851 | 43,385,451 | 43,574,539 | 43,631,497 | ||||||||||
Return on average assets3 | 1.33% | 1.28% | 1.32% | 1.23% | 1.26% | ||||||||||
Return on average equity3 | 12.87% | 12.73% | 12.78% | 11.89% | 12.04% | ||||||||||
Return on average tangible common equity1 3 | 17.12% | 17.00% | 16.87% | 15.70% | 15.97% | ||||||||||
Net interest margin1 3 | 3.51% | 3.21% | 2.95% | 3.08% | 2.88% | ||||||||||
9 Months Ended |
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2022 | 2021 | ||||||||||||||
Profitability: | |||||||||||||||
Diluted earnings per share | $ | 2.68 | $ | 2.69 | |||||||||||
Weighted average diluted common shares outstanding | 43,194,037 | 43,768,647 | |||||||||||||
Return on average assets3 | 1.31% | 1.37% | |||||||||||||
Return on average equity3 | 12.79% | 13.00% | |||||||||||||
Return on average tangible common equity1 3 | 17.00% | 17.35% | |||||||||||||
Net interest margin1 3 | 3.22% | 3.01% | |||||||||||||
2022 | 2021 | ||||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Balance sheet data: | |||||||||||||||
Short-term interest-bearing accounts | $ | 97,303 | $ | 328,593 | $ | 913,315 | $ | 1,111,296 | $ | 1,131,074 | |||||
Securities available for sale | 1,556,501 | 1,619,356 | 1,662,697 | 1,687,361 | 1,576,030 | ||||||||||
Securities held to maturity | 929,541 | 936,512 | 895,005 | 733,210 | 683,103 | ||||||||||
Net loans | 7,807,984 | 7,684,081 | 7,559,826 | 7,406,459 | 7,473,442 | ||||||||||
Total assets | 11,640,742 | 11,720,459 | 12,147,833 | 12,012,111 | 11,994,411 | ||||||||||
Total deposits | 9,918,751 | 10,028,708 | 10,461,623 | 10,234,469 | 10,195,178 | ||||||||||
Total borrowings | 277,889 | 265,796 | 278,788 | 311,476 | 313,311 | ||||||||||
Total liabilities | 10,484,196 | 10,531,903 | 10,945,583 | 10,761,658 | 10,752,954 | ||||||||||
Stockholders' equity | 1,156,546 | 1,188,556 | 1,202,250 | 1,250,453 | 1,241,457 | ||||||||||
Capital: | |||||||||||||||
Equity to assets | 9.94% | 10.14% | 9.90% | 10.41% | 10.35% | ||||||||||
Tangible equity ratio1 | 7.64% | 7.87% | 7.70% | 8.20% | 8.13% | ||||||||||
Book value per share | $ | 27.00 | $ | 27.75 | $ | 27.96 | $ | 28.97 | $ | 28.65 | |||||
Tangible book value per share2 | $ | 20.25 | $ | 20.99 | $ | 21.25 | $ | 22.26 | $ | 21.95 | |||||
Leverage ratio | 10.21% | 9.77% | 9.52% | 9.41% | 9.47% | ||||||||||
Common equity tier 1 capital ratio | 12.17% | 12.14% | 12.23% | 12.25% | 12.20% | ||||||||||
Tier 1 capital ratio | 13.27% | 13.27% | 13.39% | 13.43% | 13.39% | ||||||||||
Total risk-based capital ratio | 15.50% | 15.50% | 15.64% | 15.73% | 15.74% | ||||||||||
Common stock price (end of period) | $ | 37.95 | $ | 37.59 | $ | 36.13 | $ | 38.52 | $ | 36.12 | |||||
Asset Quality and Consolidated Loan Balances | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
2022 | 2021 | ||||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Asset quality: | |||||||||||||||
Nonaccrual loans | $ | 19,098 | $ | 23,673 | $ | 25,812 | $ | 30,285 | $ | 35,737 | |||||
90 days past due and still accruing | 2,732 | 2,096 | 1,944 | 2,458 | 2,940 | ||||||||||
Total nonperforming loans | 21,830 | 25,769 | 27,756 | 32,743 | 38,677 | ||||||||||
Other real estate owned | - | - | - | 167 | 859 | ||||||||||
Total nonperforming assets | 21,830 | 25,769 | 27,756 | 32,910 | 39,536 | ||||||||||
Allowance for loan losses | 96,800 | 93,600 | 90,000 | 92,000 | 93,000 | ||||||||||
Asset quality ratios (total): | |||||||||||||||
Allowance for loan losses to total loans | 1.22% | 1.20% | 1.18% | 1.23% | 1.23% | ||||||||||
Total nonperforming loans to total loans | 0.28% | 0.33% | 0.36% | 0.44% | 0.51% | ||||||||||
Total nonperforming assets to total assets | 0.19% | 0.22% | 0.23% | 0.27% | 0.33% | ||||||||||
Allowance for loan losses to total nonperforming loans | 443.43% | 363.23% | 324.25% | 280.98% | 240.45% | ||||||||||
Past due loans to total loans4 | 0.30% | 0.40% | 0.24% | 0.29% | 0.46% | ||||||||||
Net charge-offs to average loans3 | 0.07% | 0.04% | 0.14% | 0.22% | 0.11% | ||||||||||
Asset quality ratios (excluding paycheck protection program): | |||||||||||||||
Allowance for loan losses to total loans | 1.23% | 1.21% | 1.18% | 1.24% | 1.28% | ||||||||||
Total nonperforming loans to total loans | 0.28% | 0.33% | 0.37% | 0.44% | 0.53% | ||||||||||
Total nonperforming assets to total assets | 0.19% | 0.22% | 0.23% | 0.28% | 0.34% | ||||||||||
Allowance for loan losses to total nonperforming loans | 443.43% | 363.27% | 324.24% | 280.96% | 240.42% | ||||||||||
Past due loans to total loans4 | 0.29% | 0.40% | 0.25% | 0.29% | 0.48% | ||||||||||
Net charge-offs to average loans3 | 0.07% | 0.04% | 0.14% | 0.22% | 0.12% | ||||||||||
2022 | 2021 | ||||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Allowance for loan losses as a percentage of loans by segment: | |||||||||||||||
Commercial & industrial | 0.80% | 0.75% | 0.66% | 0.78% | 0.83% | ||||||||||
Commercial real estate | 0.88% | 0.89% | 0.79% | 0.78% | 0.93% | ||||||||||
Paycheck protection program | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | ||||||||||
Residential real estate | 0.74% | 0.79% | 0.88% | 0.92% | 0.93% | ||||||||||
Auto | 0.78% | 0.79% | 0.76% | 0.79% | 0.78% | ||||||||||
Other consumer | 3.95% | 3.98% | 4.14% | 4.49% | 4.57% | ||||||||||
Total | 1.22% | 1.20% | 1.18% | 1.23% | 1.23% | ||||||||||
Total excluding PPP loans | 1.23% | 1.21% | 1.18% | 1.24% | 1.28% | ||||||||||
2022 | 2021 | ||||||||||||||
Loans by line of business: | 3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | ||||||||||
Commercial & industrial | $ | 1,258,871 | $ | 1,298,072 | $ | 1,214,834 | $ | 1,155,240 | $ | 1,148,176 | |||||
Commercial real estate | 2,724,728 | 2,670,633 | 2,709,611 | 2,655,367 | 2,638,762 | ||||||||||
Paycheck protection program | 3,328 | 17,286 | 50,977 | 101,222 | 276,195 | ||||||||||
Residential real estate mortgages | 1,626,528 | 1,606,188 | 1,584,551 | 1,571,232 | 1,549,684 | ||||||||||
Indirect auto | 952,757 | 936,516 | 890,643 | 859,454 | 873,860 | ||||||||||
Residential solar | 728,898 | 599,565 | 514,526 | 440,016 | 365,299 | ||||||||||
Home equity | 313,557 | 313,395 | 319,180 | 330,357 | 339,316 | ||||||||||
Other consumer | 296,117 | 336,026 | 365,504 | 385,571 | 375,150 | ||||||||||
Total loans | $ | 7,904,784 | $ | 7,777,681 | $ | 7,649,826 | $ | 7,498,459 | $ | 7,566,442 | |||||
PPP income recognized | $ | 320 | $ | 1,301 | $ | 1,976 | $ | 7,545 | $ | 2,861 | |||||
PPP unamortized fees | $ | 108 | $ | 414 | $ | 1,629 | $ | 3,420 | $ | 10,536 | |||||
Consolidated Balance Sheets | ||||||
(unaudited, dollars in thousands) | ||||||
Assets | 2022 | 2021 | ||||
Cash and due from banks | $ | 223,755 | $ | 157,775 | ||
Short-term interest-bearing accounts | 97,303 | 1,111,296 | ||||
Equity securities, at fair value | 30,428 | 33,550 | ||||
Securities available for sale, at fair value | 1,556,501 | 1,687,361 | ||||
Securities held to maturity (fair value |
929,541 | 733,210 | ||||
24,892 | 25,098 | |||||
Loans held for sale | 87 | 830 | ||||
Loans | 7,904,784 | 7,498,459 | ||||
Less allowance for loan losses | 96,800 | 92,000 | ||||
Net loans | $ | 7,807,984 | $ | 7,406,459 | ||
Premises and equipment, net | 69,338 | 72,093 | ||||
281,204 | 280,541 | |||||
Intangible assets, net | 7,879 | 8,927 | ||||
Bank owned life insurance | 230,990 | 228,238 | ||||
Other assets | 380,840 | 266,733 | ||||
Total assets | $ | 11,640,742 | $ | 12,012,111 | ||
Liabilities and stockholders' equity | ||||||
Demand (noninterest bearing) | $ | 3,714,342 | $ | 3,689,556 | ||
Savings, NOW and money market | 5,758,736 | 6,043,441 | ||||
Time | 445,673 | 501,472 | ||||
Total deposits | $ | 9,918,751 | $ | 10,234,469 | ||
Short-term borrowings | 74,554 | 97,795 | ||||
Long-term debt | 3,322 | 13,995 | ||||
Subordinated debt, net | 98,817 | 98,490 | ||||
Junior subordinated debt | 101,196 | 101,196 | ||||
Other liabilities | 287,556 | 215,713 | ||||
Total liabilities | $ | 10,484,196 | $ | 10,761,658 | ||
Total stockholders' equity | $ | 1,156,546 | $ | 1,250,453 | ||
Total liabilities and stockholders' equity | $ | 11,640,742 | $ | 12,012,111 | ||
Consolidated Statements of Income | ||||||||||||
(unaudited, dollars in thousands except per share data) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Interest, fee and dividend income | ||||||||||||
Interest and fees on loans | $ | 85,266 | $ | 72,817 | $ | 237,148 | $ | 222,705 | ||||
Securities available for sale | 7,665 | 5,898 | 21,822 | 17,204 | ||||||||
Securities held to maturity | 4,854 | 2,976 | 12,532 | 9,454 | ||||||||
Other | 1,429 | 524 | 3,396 | 1,206 | ||||||||
Total interest, fee and dividend income | $ | 99,214 | $ | 82,215 | $ | 274,898 | $ | 250,569 | ||||
Interest expense | ||||||||||||
Deposits | $ | 2,233 | $ | 2,548 | $ | 5,831 | $ | 8,582 | ||||
Short-term borrowings | 84 | 28 | 113 | 130 | ||||||||
Long-term debt | 20 | 89 | 140 | 301 | ||||||||
Subordinated debt | 1,360 | 1,359 | 4,078 | 4,077 | ||||||||
Junior subordinated debt | 1,039 | 517 | 2,325 | 1,572 | ||||||||
Total interest expense | $ | 4,736 | $ | 4,541 | $ | 12,487 | $ | 14,662 | ||||
Net interest income | $ | 94,478 | $ | 77,674 | $ | 262,411 | $ | 235,907 | ||||
Provision for loan losses | 4,484 | (3,342 | ) | 9,470 | (11,354 | ) | ||||||
Net interest income after provision for loan losses | $ | 89,994 | $ | 81,016 | $ | 252,941 | $ | 247,261 | ||||
Noninterest income | ||||||||||||
Service charges on deposit accounts | $ | 3,581 | $ | 3,489 | $ | 11,032 | $ | 9,544 | ||||
Card services income | 5,654 | 9,101 | 24,100 | 25,835 | ||||||||
Retirement plan administration fees | 11,496 | 10,495 | 37,451 | 30,372 | ||||||||
Wealth management | 8,402 | 8,783 | 25,294 | 25,099 | ||||||||
Insurance services | 3,892 | 3,720 | 11,258 | 10,689 | ||||||||
Bank owned life insurance income | 1,560 | 1,548 | 4,625 | 4,588 | ||||||||
Net securities (losses) gains | (148 | ) | (100 | ) | (914 | ) | 568 | |||||
Other | 2,735 | 3,293 | 8,641 | 9,988 | ||||||||
Total noninterest income | $ | 37,172 | $ | 40,329 | $ | 121,487 | $ | 116,683 | ||||
Noninterest expense | ||||||||||||
Salaries and employee benefits | $ | 48,371 | $ | 44,190 | $ | 140,595 | $ | 128,462 | ||||
Technology and data services | 9,096 | 8,421 | 26,588 | 26,154 | ||||||||
Occupancy | 6,481 | 6,154 | 19,761 | 19,413 | ||||||||
Professional fees and outside services | 3,817 | 3,784 | 11,999 | 11,403 | ||||||||
Office supplies and postage | 1,469 | 1,364 | 4,441 | 4,478 | ||||||||
787 | 772 | 2,399 | 2,243 | |||||||||
Advertising | 559 | 583 | 1,943 | 1,502 | ||||||||
Amortization of intangible assets | 544 | 663 | 1,725 | 2,157 | ||||||||
Loan collection and other real estate owned, net | 549 | 706 | 1,690 | 1,959 | ||||||||
Other | 5,021 | 6,232 | 13,815 | 14,405 | ||||||||
Total noninterest expense | $ | 76,694 | $ | 72,869 | $ | 224,956 | $ | 212,176 | ||||
Income before income tax expense | $ | 50,472 | $ | 48,476 | $ | 149,472 | $ | 151,768 | ||||
Income tax expense | 11,499 | 11,043 | 33,598 | 34,193 | ||||||||
Net income | $ | 38,973 | $ | 37,433 | $ | 115,874 | $ | 117,575 | ||||
Earnings Per Share | ||||||||||||
Basic | $ | 0.91 | $ | 0.86 | $ | 2.70 | $ | 2.71 | ||||
Diluted | $ | 0.90 | $ | 0.86 | $ | 2.68 | $ | 2.69 | ||||
Quarterly Consolidated Statements of Income | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2022 | 2021 | ||||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Interest, fee and dividend income | |||||||||||||||
Interest and fees on loans | $ | 85,266 | $ | 78,539 | $ | 73,343 | $ | 79,470 | $ | 72,817 | |||||
Securities available for sale | 7,665 | 7,317 | 6,840 | 6,101 | 5,898 | ||||||||||
Securities held to maturity | 4,854 | 4,185 | 3,493 | 3,097 | 2,976 | ||||||||||
Other | 1,429 | 1,442 | 525 | 639 | 524 | ||||||||||
Total interest, fee and dividend income | $ | 99,214 | $ | 91,483 | $ | 84,201 | $ | 89,307 | $ | 82,215 | |||||
Interest expense | |||||||||||||||
Deposits | $ | 2,233 | $ | 1,756 | $ | 1,842 | $ | 2,132 | $ | 2,548 | |||||
Short-term borrowings | 84 | 13 | 16 | 28 | 28 | ||||||||||
Long-term debt | 20 | 33 | 87 | 88 | 89 | ||||||||||
Subordinated debt | 1,360 | 1,359 | 1,359 | 1,360 | 1,359 | ||||||||||
Junior subordinated debt | 1,039 | 737 | 549 | 518 | 517 | ||||||||||
Total interest expense | $ | 4,736 | $ | 3,898 | $ | 3,853 | $ | 4,126 | $ | 4,541 | |||||
Net interest income | $ | 94,478 | $ | 87,585 | $ | 80,348 | $ | 85,181 | $ | 77,674 | |||||
Provision for loan losses | 4,484 | 4,390 | 596 | 3,097 | (3,342 | ) | |||||||||
Net interest income after provision for loan losses | $ | 89,994 | $ | 83,195 | $ | 79,752 | $ | 82,084 | $ | 81,016 | |||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | $ | 3,581 | $ | 3,763 | $ | 3,688 | $ | 3,804 | $ | 3,489 | |||||
Card services income | 5,654 | 9,751 | 8,695 | 8,847 | 9,101 | ||||||||||
Retirement plan administration fees | 11,496 | 12,676 | 13,279 | 11,816 | 10,495 | ||||||||||
Wealth management | 8,402 | 8,252 | 8,640 | 8,619 | 8,783 | ||||||||||
Insurance services | 3,892 | 3,578 | 3,788 | 3,394 | 3,720 | ||||||||||
Bank owned life insurance income | 1,560 | 1,411 | 1,654 | 1,629 | 1,548 | ||||||||||
Net securities (losses) | (148 | ) | (587 | ) | (179 | ) | (2 | ) | (100 | ) | |||||
Other | 2,735 | 2,812 | 3,094 | 3,004 | 3,293 | ||||||||||
Total noninterest income | $ | 37,172 | $ | 41,656 | $ | 42,659 | $ | 41,111 | $ | 40,329 | |||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | $ | 48,371 | $ | 46,716 | $ | 45,508 | $ | 44,118 | $ | 44,190 | |||||
Technology and data services | 9,096 | 8,945 | 8,547 | 8,563 | 8,421 | ||||||||||
Occupancy | 6,481 | 6,487 | 6,793 | 6,635 | 6,154 | ||||||||||
Professional fees and outside services | 3,817 | 3,906 | 4,276 | 4,903 | 3,784 | ||||||||||
Office supplies and postage | 1,469 | 1,548 | 1,424 | 1,528 | 1,364 | ||||||||||
787 | 810 | 802 | 798 | 772 | |||||||||||
Advertising | 559 | 730 | 654 | 1,019 | 583 | ||||||||||
Amortization of intangible assets | 544 | 545 | 636 | 651 | 663 | ||||||||||
Loan collection and other real estate owned, net | 549 | 757 | 384 | 956 | 706 | ||||||||||
Other | 5,021 | 5,675 | 3,119 | 5,934 | 6,232 | ||||||||||
Total noninterest expense | $ | 76,694 | $ | 76,119 | $ | 72,143 | $ | 75,105 | $ | 72,869 | |||||
Income before income tax expense | $ | 50,472 | $ | 48,732 | $ | 50,268 | $ | 48,090 | $ | 48,476 | |||||
Income tax expense | 11,499 | 10,957 | 11,142 | 10,780 | 11,043 | ||||||||||
Net income | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | |||||
Earnings Per Share | |||||||||||||||
Basic | $ | 0.91 | $ | 0.88 | $ | 0.91 | $ | 0.86 | $ | 0.86 | |||||
Diluted | $ | 0.90 | $ | 0.88 | $ | 0.90 | $ | 0.86 | $ | 0.86 | |||||
Average Quarterly Balance Sheets | |||||||||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||||||||
Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | ||||||||||||
Q3 - 2022 | Q2 - 2022 | Q1 - 2022 | Q4 - 2021 | Q3 - 2021 | |||||||||||||||||
Assets | |||||||||||||||||||||
Short-term interest-bearing accounts | $ | 191,463 | 2.51 | % | $ | 553,548 | 0.82 | % | $ | 990,319 | 0.17 | % | $ | 1,145,794 | 0.16 | % | $ | 1,014,120 | 0.16 | % | |
Securities taxable1 | 2,491,315 | 1.83 | % | 2,439,960 | 1.74 | % | 2,284,578 | 1.67 | % | 2,081,796 | 1.57 | % | 1,923,700 | 1.63 | % | ||||||
Securities tax-exempt 1 5 | 211,306 | 2.47 | % | 256,799 | 1.83 | % | 258,513 | 1.84 | % | 257,320 | 1.85 | % | 246,685 | 1.97 | % | ||||||
FRB and FHLB stock | 25,182 | 3.47 | % | 24,983 | 5.03 | % | 25,026 | 1.98 | % | 25,149 | 2.74 | % | 25,154 | 1.91 | % | ||||||
Loans1 6 | 7,808,025 | 4.34 | % | 7,707,730 | 4.09 | % | 7,530,674 | 3.95 | % | 7,507,165 | 4.20 | % | 7,517,839 | 3.84 | % | ||||||
Total interest-earning assets | $ | 10,727,291 | 3.68 | % | $ | 10,983,020 | 3.35 | % | $ | 11,089,110 | 3.09 | % | $ | 11,017,224 | 3.23 | % | $ | 10,727,498 | 3.05 | % | |
Other assets | 887,378 | 883,498 | 947,578 | 982,136 | 1,019,797 | ||||||||||||||||
Total assets | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | |||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||
Money market deposit accounts | $ | 2,332,341 | 0.15 | % | $ | 2,577,367 | 0.14 | % | $ | 2,720,338 | 0.15 | % | $ | 2,678,477 | 0.16 | % | $ | 2,580,570 | 0.19 | % | |
NOW deposit accounts | 1,548,115 | 0.21 | % | 1,580,132 | 0.07 | % | 1,583,091 | 0.05 | % | 1,551,846 | 0.05 | % | 1,442,678 | 0.05 | % | ||||||
Savings deposits | 1,854,122 | 0.03 | % | 1,845,128 | 0.03 | % | 1,794,549 | 0.03 | % | 1,725,004 | 0.05 | % | 1,691,539 | 0.05 | % | ||||||
Time deposits | 455,168 | 0.35 | % | 478,531 | 0.37 | % | 494,632 | 0.40 | % | 537,875 | 0.46 | % | 565,216 | 0.62 | % | ||||||
Total interest-bearing deposits | $ | 6,189,746 | 0.14 | % | $ | 6,481,158 | 0.11 | % | $ | 6,592,610 | 0.11 | % | $ | 6,493,202 | 0.13 | % | $ | 6,280,003 | 0.16 | % | |
Federal funds purchased | 1,522 | 3.39 | % | - | - | - | - | 65 | - | - | - | ||||||||||
Repurchase agreements | 69,048 | 0.10 | % | 60,061 | 0.09 | % | 72,768 | 0.09 | % | 97,389 | 0.11 | % | 99,703 | 0.11 | % | ||||||
Short-term borrowings | 6,440 | 3.33 | % | - | - | - | - | 1 | - | - | - | ||||||||||
Long-term debt | 3,331 | 2.38 | % | 5,336 | 2.48 | % | 13,979 | 2.52 | % | 14,004 | 2.49 | % | 14,029 | 2.52 | % | ||||||
Subordinated debt, net | 98,748 | 5.46 | % | 98,642 | 5.53 | % | 98,531 | 5.59 | % | 98,422 | 5.48 | % | 98,311 | 5.48 | % | ||||||
Junior subordinated debt | 101,196 | 4.07 | % | 101,196 | 2.92 | % | 101,196 | 2.20 | % | 101,196 | 2.03 | % | 101,196 | 2.03 | % | ||||||
Total interest-bearing liabilities | $ | 6,470,031 | 0.29 | % | $ | 6,746,393 | 0.23 | % | $ | 6,879,084 | 0.23 | % | $ | 6,804,279 | 0.24 | % | $ | 6,593,242 | 0.27 | % | |
Demand deposits | 3,708,131 | 3,711,049 | 3,710,124 | 3,719,070 | 3,676,883 | ||||||||||||||||
Other liabilities | 234,851 | 218,491 | 206,292 | 231,260 | 244,125 | ||||||||||||||||
Stockholders' equity | 1,201,656 | 1,190,585 | 1,241,188 | 1,244,751 | 1,233,045 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | |||||||||||
Interest rate spread | 3.39 | % | 3.12 | % | 2.86 | % | 2.99 | % | 2.78 | % | |||||||||||
Net interest margin (FTE)1 | 3.51 | % | 3.21 | % | 2.95 | % | 3.08 | % | 2.88 | % | |||||||||||
Average Year-to-Date Balance Sheets | |||||||||||||
(unaudited, dollars in thousands) | |||||||||||||
Average | Yield/ | Average | Yield/ | ||||||||||
Balance | Interest | Rates | Balance | Interest | Rates | ||||||||
Nine Months Ended |
2022 | 2021 | |||||||||||
Assets | |||||||||||||
Short-term interest-bearing accounts | $ | 575,517 | $ | 2,742 | 0.64 | % | $ | 860,067 | $ | 763 | 0.12 | % | |
Securities taxable1 | 2,406,042 | 31,460 | 1.75 | % | 1,852,963 | 23,711 | 1.71 | % | |||||
Securities tax-exempt 1 5 | 242,033 | 3,664 | 2.02 | % | 208,438 | 3,730 | 2.39 | % | |||||
FRB and FHLB stock | 25,064 | 654 | 3.49 | % | 25,290 | 443 | 2.34 | % | |||||
Loans1 6 | 7,683,159 | 237,290 | 4.13 | % | 7,555,276 | 222,821 | 3.94 | % | |||||
Total interest-earning assets | $ | 10,931,815 | $ | 275,810 | 3.37 | % | $ | 10,502,034 | $ | 251,468 | 3.20 | % | |
Other assets | 905,931 | 984,372 | |||||||||||
Total assets | $ | 11,837,746 | $ | 11,486,406 | |||||||||
Liabilities and stockholders' equity | |||||||||||||
Money market deposit accounts | $ | 2,541,927 | $ | 2,801 | 0.15 | % | $ | 2,557,172 | $ | 4,022 | 0.21 | % | |
NOW deposit accounts | 1,570,318 | 1,260 | 0.11 | % | 1,419,102 | 531 | 0.05 | % | |||||
Savings deposits | 1,831,485 | 442 | 0.03 | % | 1,633,941 | 625 | 0.05 | % | |||||
Time deposits | 475,966 | 1,328 | 0.37 | % | 590,385 | 3,404 | 0.77 | % | |||||
Total interest-bearing deposits | $ | 6,419,696 | $ | 5,831 | 0.12 | % | $ | 6,200,600 | $ | 8,582 | 0.19 | % | |
Federal funds purchased | 513 | 13 | 3.39 | % | - | - | - | ||||||
Repurchase agreements | 67,279 | 46 | 0.09 | % | 101,574 | 104 | 0.14 | % | |||||
Short-term borrowings | 2,170 | 54 | 3.33 | % | 1,740 | 26 | 2.00 | % | |||||
Long-term debt | 7,509 | 140 | 2.49 | % | 15,976 | 301 | 2.52 | % | |||||
Subordinated debt, net | 98,641 | 4,078 | 5.53 | % | 98,204 | 4,077 | 5.55 | % | |||||
Junior subordinated debt | 101,196 | 2,325 | 3.07 | % | 101,196 | 1,572 | 2.08 | % | |||||
Total interest-bearing liabilities | $ | 6,697,004 | $ | 12,487 | 0.25 | % | $ | 6,519,290 | $ | 14,662 | 0.30 | % | |
Demand deposits | 3,709,761 | 3,514,005 | |||||||||||
Other liabilities | 219,983 | 243,525 | |||||||||||
Stockholders' equity | 1,210,998 | 1,209,586 | |||||||||||
Total liabilities and stockholders' equity | $ | 11,837,746 | $ | 11,486,406 | |||||||||
Net interest income (FTE)1 | $ | 263,323 | $ | 236,806 | |||||||||
Interest rate spread | 3.12 | % | 2.90 | % | |||||||||
Net interest margin (FTE)1 | 3.22 | % | 3.01 | % | |||||||||
Taxable equivalent adjustment | $ | 912 | $ | 899 | |||||||||
Net interest income | $ | 262,411 | $ | 235,907 | |||||||||
1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
Non-GAAP measures | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
Pre-provision net revenue ("PPNR") | 2022 | 2021 | |||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Net income | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | |||||
Income tax expense | 11,499 | 10,957 | 11,142 | 10,780 | 11,043 | ||||||||||
Provision for loan losses | 4,484 | 4,390 | 596 | 3,097 | (3,342 | ) | |||||||||
FTE adjustment | 337 | 290 | 285 | 292 | 298 | ||||||||||
Net securities losses | 148 | 587 | 179 | 2 | 100 | ||||||||||
Provision for unfunded loan commitments reserve | 225 | 240 | (260 | ) | (250 | ) | (470 | ) | |||||||
Nonrecurring expense | - | - | (172 | ) | 250 | 2,288 | |||||||||
PPNR | $ | 55,666 | $ | 54,239 | $ | 50,896 | $ | 51,481 | $ | 47,350 | |||||
Average assets | $ | 11,614,669 | $ | 11,866,518 | $ | 12,036,688 | $ | 11,999,360 | $ | 11,747,295 | |||||
Return on average assets3 | 1.33% | 1.28% | 1.32% | 1.23% | 1.26% | ||||||||||
PPNR return on average assets3 | 1.90% | 1.83% | 1.71% | 1.70% | 1.60% | ||||||||||
9 Months Ended |
|||||||||||||||
2022 | 2021 | ||||||||||||||
Net income | $ | 115,874 | $ | 117,575 | |||||||||||
Income tax expense | 33,598 | 34,193 | |||||||||||||
Provision for loan losses | 9,470 | (11,354 | ) | ||||||||||||
FTE adjustment | 912 | 899 | |||||||||||||
Net securities losses (gains) | 914 | (568 | ) | ||||||||||||
Provision for unfunded loan commitments reserve | 205 | (1,050 | ) | ||||||||||||
Nonrecurring expense | (172 | ) | 4,168 | ||||||||||||
PPNR | $ | 160,801 | $ | 143,863 | |||||||||||
Average Assets | $ | 11,837,746 | $ | 11,486,406 | |||||||||||
Return on average assets3 | 1.31% | 1.37% | |||||||||||||
PPNR return on average assets3 | 1.82% | 1.67% | |||||||||||||
PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense. | |||||||||||||||
FTE adjustment | 2022 | 2021 | |||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Net interest income | $ | 94,478 | $ | 87,585 | $ | 80,348 | $ | 85,181 | $ | 77,674 | |||||
Add: FTE adjustment | 337 | 290 | 285 | 292 | 298 | ||||||||||
Net interest income (FTE) | $ | 94,815 | $ | 87,875 | $ | 80,633 | $ | 85,473 | $ | 77,972 | |||||
Average earning assets | $ | 10,727,291 | $ | 10,983,020 | $ | 11,089,110 | $ | 11,017,224 | $ | 10,727,498 | |||||
Net interest margin (FTE)3 | 3.51% | 3.21% | 2.95% | 3.08% | 2.88% | ||||||||||
9 Months Ended |
|||||||||||||||
2022 | 2021 | ||||||||||||||
Net interest income | $ | 262,411 | $ | 235,907 | |||||||||||
Add: FTE adjustment | 912 | 899 | |||||||||||||
Net interest income (FTE) | $ | 263,323 | $ | 236,806 | |||||||||||
Average earning assets | $ | 10,931,815 | $ | 10,502,034 | |||||||||||
Net interest margin (FTE)3 | 3.22% | 3.01% | |||||||||||||
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. | |||||||||||||||
1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
Non-GAAP measures | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
Tangible equity to tangible assets | 2022 | 2021 | |||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Total equity | $ | 1,156,546 | $ | 1,188,556 | $ | 1,202,250 | $ | 1,250,453 | $ | 1,241,457 | |||||
Intangible assets | 289,083 | 289,259 | 288,832 | 289,468 | 290,119 | ||||||||||
Total assets | $ | 11,640,742 | $ | 11,720,459 | $ | 12,147,833 | $ | 12,012,111 | $ | 11,994,411 | |||||
Tangible equity to tangible assets | 7.64% | 7.87% | 7.70% | 8.20% | 8.13% | ||||||||||
Return on average tangible common equity | 2022 | 2021 | |||||||||||||
3rd Q | 2nd Q | 1st Q | 4th Q | 3rd Q | |||||||||||
Net income | $ | 38,973 | $ | 37,775 | $ | 39,126 | $ | 37,310 | $ | 37,433 | |||||
Amortization of intangible assets (net of tax) | 408 | 409 | 477 | 488 | 497 | ||||||||||
Net income, excluding intangibles amortization | $ | 39,381 | $ | 38,184 | $ | 39,603 | $ | 37,798 | $ | 37,930 | |||||
Average stockholders' equity | $ | 1,201,656 | $ | 1,190,585 | $ | 1,241,188 | $ | 1,244,751 | $ | 1,233,045 | |||||
Less: average goodwill and other intangibles | 289,296 | 289,584 | 289,218 | 289,834 | 290,492 | ||||||||||
Average tangible common equity | $ | 912,360 | $ | 901,001 | $ | 951,970 | $ | 954,917 | $ | 942,553 | |||||
Return on average tangible common equity3 | 17.12% | 17.00% | 16.87% | 15.70% | 15.97% | ||||||||||
9 Months Ended |
|||||||||||||||
2022 | 2021 | ||||||||||||||
Net income | $ | 115,874 | $ | 117,575 | |||||||||||
Amortization of intangible assets (net of tax) | 1,294 | 1,618 | |||||||||||||
Net income, excluding intangibles amortization | $ | 117,168 | $ | 119,193 | |||||||||||
Average stockholders' equity | $ | 1,210,998 | $ | 1,209,586 | |||||||||||
Less: average goodwill and other intangibles | 289,366 | 291,177 | |||||||||||||
Average tangible common equity | $ | 921,632 | $ | 918,409 | |||||||||||
Return on average tangible common equity3 | 17.00% | 17.35% | |||||||||||||
2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | |||||||||||||||
3Annualized. | |||||||||||||||
4Total past due loans, defined as loans 30 days or more past due and in an accrual status. | |||||||||||||||
5Securities are shown at average amortized cost. | |||||||||||||||
6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. | |||||||||||||||
![](https://ml.globenewswire.com/media/ZmVkYTNiZmMtZmExNC00ODU1LWIzYWUtZDA2MWY1NTViOWZhLTEwMzA2MTI=/tiny/NBT-Bancorp-Inc-.png)
NBT Bancorp Inc.