UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2019
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NBT BANCORP INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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0-14703
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16-1268674
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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52 South Broad Street, Norwich, New York
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13815
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code: (607) 337-2265
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02
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Results of Operations and Financial Condition
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On April 22, 2019, NBT Bancorp Inc. issued a press release describing
its results of operations for the quarter ended March 31, 2019. That press release is furnished as Exhibit 99.1 hereto.
| Item 9.01 |
Financial Statements and Exhibits.
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| (a) |
Not applicable.
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| (b) |
Not applicable.
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| (c) |
Not applicable.
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| (d) |
Exhibits.
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Exhibit No.
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Description
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Press release of NBT Bancorp Inc. dated April 22, 2019
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned thereunto duly authorized.
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NBT BANCORP INC.
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Date: April 22, 2019
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By:/s/ Michael J. Chewens
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Michael J. Chewens
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Senior Executive Vice President
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and Chief Financial Officer
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Exhibit 99.1
Page 1 of 10
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FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
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Contact:
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John H. Watt, Jr., President and CEO
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Michael J. Chewens, CFO
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NBT Bancorp Inc.
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52 South Broad Street
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Norwich, NY 13815
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607-337-6589
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NBT BANCORP INC. ANNOUNCES FIRST QUARTER NET INCOME OF $29.1 MILLION AND DILUTED EARNINGS PER SHARE OF $0.66
NORWICH, NY (April 22, 2019) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three
months ended March 31, 2019.
Net income for the three months ended March 31, 2019 was $29.1 million, up 1.7% from $28.7 million for the fourth quarter of 2018 and up 12.1% from $26.0
million for the first quarter of 2018. Diluted earnings per share for the three months ended March 31, 2019 was $0.66, as compared with $0.65 for the prior quarter, an increase of 1.5%, and $0.59 for the first quarter of 2018, an increase of
11.9%.
Highlights:
| • |
Net Income up 12.1% from the first quarter of 2018
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| • |
Diluted earnings per share up 11.9% from the first quarter of 2018
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| • |
Average demand deposits up 2.2% from the first quarter of 2018
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| • |
FTE net interest margin of 3.64%, up 3 bps from the prior quarter
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| • |
Full cycle deposit beta of 11.7% through the quarter ending March 31, 20191
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| • |
Tangible equity ratio of 8.06%, up 54 bps from the first quarter of 2018
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“In the first quarter of 2019, we achieved double-digit year-over-year earnings growth with net income and earnings per share up 12% over first quarter
2018. In addition, we continued to build our tangible capital which increases our ability to be opportunistic in executing on our long-term growth strategies,” said NBT President and CEO John H. Watt, Jr. “Our strong financial results affirm the
quality of our team and their commitment to providing our customers with the best service and financial products while constantly working to enhance the experience we deliver. This customer-focused approach drives our success and is the
foundation of our efforts to build shareholder value.”
1 The change in the Company’s quarterly deposit costs from December 31, 2015 to
March 31, 2019 of 0.26% divided by the change in Federal Reserve’s target fed funds rate from December 2015 to March 2019 of 2.25%
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Page 2 of 10
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Net interest income was $77.7 million for the first quarter of 2019, down $1.2 million, or 1.5%, from the previous quarter. The fully taxable equivalent
(“FTE”) net interest margin was 3.64% for the three months ended March 31, 2019, up 3 basis points (“bps”) from the previous quarter, as higher rates on lower average interest-earning assets more than offset higher funding costs on higher average
interest-bearing liabilities. Interest income increased $0.8 million, or 0.9%, as the yield on average interest-earning assets increased 14 bps from the prior quarter to 4.28%, while average interest-earning assets of $8.7 billion remained
relatively consistent with prior quarter. Interest expense was up $2.0 million, or 17.2%, as the cost of interest-bearing liabilities increased 15 bps to 0.92% for the quarter ended March 31, 2019, driven by interest-bearing deposit costs
increasing 16 bps along with increased short-term borrowings cost. The Federal Reserve has raised its target fed funds rate nine times from December 2015 through March 2019 for a total increase of 225 bps. During this same cycle of increasing
rates, the Company’s average cost of deposits increased by 26 bps, resulting in a full cycle deposit beta of 11.7%.
Net interest income was $77.7 million for the first quarter of 2019, up $4.2 million, or 5.7%, from the first quarter of 2018. The FTE net interest
margin of 3.64% was up 7 bps from the first quarter of 2018. Interest income increased $10.6 million, or 13.1%, as the yield on average interest-earning assets increased 36 bps from the same period in 2018, and average interest-earning assets
increased $314.0 million, or 3.7%, primarily due to a $294.2 million increase in average loans. Interest expense increased $6.4 million, as the cost of interest-bearing liabilities increased 41 bps, driven by interest-bearing deposit costs
increasing 38 bps combined with a 72 basis point increase in short-term borrowing costs.
Noninterest income for the three months ended March 31, 2019 was $33.8 million, up $7.9 million, or 30.4%, from the prior quarter and up $2.5 million, or
8.1%, from the first quarter of 2018. The increase from the prior quarter was primarily driven by lower net securities losses and seasonal increases in both insurance and other financial services revenue and retirement plan administration fees.
In the fourth quarter of 2018, the Company restructured the investment portfolio by selling $109 million of lower-yielding bonds and reinvesting the proceeds in higher-yielding bonds, which resulted in a $6.6 million loss on securities sold.
Excluding net securities gains (losses), noninterest income for the three months ended March 31, 2019 would have been $33.8 million, up $0.9 million, or 2.7% from the prior quarter and up $2.6 million, or 8.2% from the first quarter of 2018. The
increase from the first quarter of 2018 was primarily due to higher retirement plan administration fees resulting from the acquisition of Retirement Plan Services, LLC (“RPS”) in the second quarter of 2018.
Noninterest expense for the three months ended March 31, 2019 was $68.5 million, down $0.4 million, or 0.6%, from the prior quarter and up $4.2 million,
or 6.5%, from the first quarter of 2018. The decrease from the prior quarter was primarily due to a $1.1 million decrease in other noninterest expense due to the timing of expense items combined with $0.4 million in non-recurring items in the
fourth quarter of 2018, partially offset by a $0.7 million increase in pension interest and amortization costs. Advertising expense decreased from the prior quarter by $0.5 million due to the timing of expenses in the fourth quarter of 2018.
These decreases were partially offset by a $1.0 million increase in occupancy expense due to seasonal expenses. The increase from the first quarter of 2018 was driven by increases in salaries and employee benefits expense, equipment expense and
other noninterest expense, which were partially offset by a decrease in loan collection and other real estate owned. Salaries and employee benefits expense increased from the first quarter of 2018 due primarily to the acquisition of RPS in the
second quarter of 2018 and related employee benefits expenses combined with a $0.4 million increase in salaries related to the tax reform initiatives implemented in the first quarter of 2018.
Income tax expense for the three months ended March 31, 2019 was $8.1 million, up $7.4 million, from the prior quarter and up $1.1 million from the first
quarter of 2018. The effective tax rate of 21.8% for the first quarter of 2019 was up from 2.5% for the fourth quarter of 2018 and up from 21.2% for the first quarter of 2018. The increase in income tax expense from the prior quarter was
primarily due to a $5.5 million tax benefit recorded in the fourth quarter of 2018 primarily related to one-time income tax return accounting method changes during the fourth quarter of 2018. The increase in income tax expense from the first
quarter of 2018 was primarily due to a higher level of taxable income.
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Page 3 of 10
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Asset Quality
Net charge-offs of $6.9 million for the three months ended March 31, 2019 were comparable to $6.8 million for the prior quarter and for the first quarter
of 2018. Provision expense was lower at $5.8 million for the three months ended March 31, 2019, as compared with $6.5 million for the prior quarter and as compared with $7.5 million for the first quarter of 2018. Annualized net charge-offs to
average loans for the first quarter of 2019 was 0.41%, up from 0.39% for the prior quarter and down from 0.42% for the first quarter of 2018.
Nonperforming loans to total loans was 0.42% at March 31, 2019, down 2 bps from 0.44% for the prior quarter and down 1 bp from 0.43% at March 31, 2018.
Past due loans as a percentage of total loans were 0.52% at March 31, 2019, down from 0.55% at December 31, 2018 and down from 0.53% at March 31, 2018.
The allowance for loan losses totaled $71.4 million at March 31, 2019, compared to $72.5 million at December 31, 2018 and $70.2 million at March 31,
2018. The allowance for loan losses as a percentage of loans was 1.04% (1.09% excluding acquired loans) at March 31, 2019, compared to 1.05% (1.10% excluding acquired loans) at December 31, 2018 and 1.06% (1.12% excluding acquired loans) at March
31, 2018.
Balance Sheet
Total assets were $9.5 billion at March 31, 2019 compared with $9.6 billion at December 31, 2018. Loans were $6.9 billion at March 31, 2019, comparable
to December 31, 2018. In the first quarter of 2019, loan growth in commercial and commercial real estate was offset by run-off in our dealer finance portfolio. This is consistent with the Company’s strategy to focus on our higher returning
portfolios thus reducing the need to rely more on price sensitive deposits to fund loan growth during the current interest rate environment. Total deposits were $7.6 billion at March 31, 2019, up $249.4 million, or 3.4%, from December 31, 2018,
reflecting growth in core and municipal deposits. Stockholders’ equity was $1.0 billion, representing a total equity-to-total assets ratio of 10.85% at March 31, 2019, compared with $1.0 billion or a total equity-to-total assets ratio of 10.65%
at December 31, 2018.
Dividend
On March 25, 2019, the Company announced that the Board of Directors approved a second-quarter 2019 cash dividend of $0.26 per share. The dividend will
be paid on June 14, 2019 to shareholders of record as of May 31, 2019.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total
assets of $9.5 billion at March 31, 2019. 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 149 banking locations in New York, Pennsylvania,
Vermont, Massachusetts, New Hampshire and Maine. EPIC Retirement Plan Services, based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, N.Y., is a full-service insurance agency.
More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtinsurance.com.
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Page 4 of 10
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Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and
assumptions of the management of NBT and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, which could cause actual
conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among
others: (1) competitive pressures among depository and other financial institutions may increase significantly, including as a result of competitors having greater financial resources than NBT; (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 business and results; (6) NBT’s ability to successfully integrate acquired businesses and employees;
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, equity and assets as well as providing a FTE yield on securities and loans. Where
non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide 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.
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Page 5 of 10
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NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
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(unaudited, dollars in thousands except per share data)
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2019
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2018
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|||||||||||||||||||
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Profitability:
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1st Q
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4th Q
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3rd Q
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2nd Q
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1st Q
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|||||||||||||||
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Diluted earnings per share
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$
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0.66
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$
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0.65
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$
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0.68
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$
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0.64
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$
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0.59
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||||||||||
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Weighted average diluted common shares outstanding
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44,081,086
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44,059,796
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44,050,557
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44,016,940
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43,975,248
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|||||||||||||||
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Return on average assets (1)
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1.24
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%
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1.20
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%
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1.25
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%
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1.21
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%
|
1.15
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%
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||||||||||
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Return on average equity (1)
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11.52
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%
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11.34
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%
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11.96
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%
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11.64
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%
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10.99
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%
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||||||||||
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Return on average tangible common equity (1)(3)
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16.45
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%
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16.37
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%
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17.42
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%
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17.08
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%
|
15.95
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%
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||||||||||
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Net interest margin (1)(2)
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3.64
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%
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3.61
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%
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3.57
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%
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3.57
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%
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3.57
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%
|
||||||||||
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Balance sheet data:
|
||||||||||||||||||||
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Securities available for sale
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$
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951,859
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$
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998,496
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$
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1,101,074
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$
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1,192,939
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$
|
1,265,912
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||||||||||
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Securities held to maturity
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780,565
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783,599
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659,949
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544,163
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487,126
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|||||||||||||||
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Net loans
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6,818,907
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6,815,204
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6,814,457
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6,785,721
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6,575,522
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|||||||||||||||
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Total assets
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9,533,510
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9,556,363
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9,547,284
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9,467,138
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9,230,834
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|||||||||||||||
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Total deposits
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7,617,659
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7,368,211
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7,441,290
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7,344,449
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7,393,928
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|||||||||||||||
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Total borrowings
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719,775
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1,046,616
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986,656
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1,028,971
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776,032
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|||||||||||||||
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Total liabilities
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8,499,455
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8,538,454
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8,553,129
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8,488,209
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8,278,104
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|||||||||||||||
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Stockholders' equity
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1,034,055
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1,017,909
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994,155
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978,929
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952,730
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|||||||||||||||
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Asset quality:
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||||||||||||||||||||
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Nonaccrual loans
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$
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25,632
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$
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25,487
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$
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23,301
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$
|
24,006
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$
|
25,426
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||||||||||
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90 days past due and still accruing
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3,335
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5,085
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4,734
|
2,209
|
2,934
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|||||||||||||||
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Total nonperforming loans
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28,967
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30,572
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28,035
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26,215
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28,360
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|||||||||||||||
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Other real estate owned
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2,222
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2,441
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3,271
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4,349
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4,949
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|||||||||||||||
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Total nonperforming assets
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31,189
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33,013
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31,306
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30,564
|
33,309
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|||||||||||||||
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Allowance for loan losses
|
71,405
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72,505
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72,805
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72,450
|
70,200
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|||||||||||||||
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Asset quality ratios (total):
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||||||||||||||||||||
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Allowance for loan losses to total loans
|
1.04
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%
|
1.05
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%
|
1.06
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%
|
1.06
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%
|
1.06
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%
|
||||||||||
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Total nonperforming loans to total loans
|
0.42
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%
|
0.44
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%
|
0.41
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%
|
0.38
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%
|
0.43
|
%
|
||||||||||
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Total nonperforming assets to total assets
|
0.33
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%
|
0.35
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%
|
0.33
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%
|
0.32
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%
|
0.36
|
%
|
||||||||||
|
Allowance for loan losses to total nonperforming loans
|
246.50
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%
|
237.16
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%
|
259.69
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%
|
276.37
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%
|
247.53
|
%
|
||||||||||
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Past due loans to total loans
|
0.52
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%
|
0.55
|
%
|
0.53
|
%
|
0.50
|
%
|
0.53
|
%
|
||||||||||
|
Net charge-offs to average loans (1)
|
0.41
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%
|
0.39
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%
|
0.33
|
%
|
0.39
|
%
|
0.42
|
%
|
||||||||||
|
Asset quality ratios (originated) (4):
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||||||||||||||||||||
|
Allowance for loan losses to loans
|
1.09
|
%
|
1.10
|
%
|
1.11
|
%
|
1.11
|
%
|
1.12
|
%
|
||||||||||
|
Nonperforming loans to loans
|
0.41
|
%
|
0.43
|
%
|
0.39
|
%
|
0.36
|
%
|
0.41
|
%
|
||||||||||
|
Allowance for loan losses to nonperforming loans
|
265.63
|
%
|
254.92
|
%
|
285.86
|
%
|
306.08
|
%
|
273.54
|
%
|
||||||||||
|
Past due loans to loans
|
0.52
|
%
|
0.56
|
%
|
0.53
|
%
|
0.50
|
%
|
0.53
|
%
|
||||||||||
|
Capital:
|
||||||||||||||||||||
|
Equity to assets
|
10.85
|
%
|
10.65
|
%
|
10.41
|
%
|
10.34
|
%
|
10.32
|
%
|
||||||||||
|
Tangible equity ratio (5)
|
8.06
|
%
|
7.85
|
%
|
7.59
|
%
|
7.48
|
%
|
7.52
|
%
|
||||||||||
|
Book value per share
|
$
|
23.64
|
$
|
23.31
|
$
|
22.77
|
$
|
22.43
|
$
|
21.84
|
||||||||||
|
Tangible book value per share (6)
|
$
|
17.02
|
$
|
16.66
|
$
|
16.10
|
$
|
15.73
|
$
|
15.41
|
||||||||||
|
Tier 1 leverage ratio
|
9.62
|
%
|
9.52
|
%
|
9.36
|
%
|
9.25
|
%
|
9.26
|
%
|
||||||||||
|
Common equity tier 1 capital ratio
|
10.69
|
%
|
10.49
|
%
|
10.28
|
%
|
10.04
|
%
|
10.12
|
%
|
||||||||||
|
Tier 1 capital ratio
|
11.99
|
%
|
11.79
|
%
|
11.58
|
%
|
11.35
|
%
|
11.48
|
%
|
||||||||||
|
Total risk-based capital ratio
|
12.98
|
%
|
12.78
|
%
|
12.58
|
%
|
12.34
|
%
|
12.47
|
%
|
||||||||||
|
Common stock price (end of period)
|
$
|
36.01
|
$
|
34.59
|
$
|
38.38
|
$
|
38.15
|
$
|
35.48
|
||||||||||
|
(1)
|
Annualized.
|
|
(2)
|
Calculated on a FTE basis.
|
|
(3)
|
Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as
follows:
|
|
2019
|
2018
|
||||||||||||||
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||
|
Net income
|
$
|
29,127
|
$
|
28,652
|
$
|
29,807
|
$
|
28,121
|
$
|
25,986
|
|||||
|
Amortization of intangible assets (net of tax)
|
726
|
734
|
791
|
822
|
686
|
||||||||||
|
Net income, excluding intangibles amortization
|
$
|
29,853
|
$
|
29,386
|
$
|
30,598
|
$
|
28,943
|
$
|
26,672
|
|||||
|
Average stockholders' equity
|
$
|
1,025,753
|
$
|
1,002,822
|
$
|
988,551
|
$
|
969,029
|
$
|
959,044
|
|||||
|
Less: average goodwill and other intangibles
|
289,913
|
290,854
|
291,814
|
289,250
|
281,027
|
||||||||||
|
Average tangible common equity
|
$
|
735,840
|
$
|
711,968
|
$
|
696,737
|
$
|
679,779
|
$
|
678,017
|
|||||
| (4) |
Non-GAAP measure - Excludes acquired loans.
|
| (5) |
Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
|
| (6) |
Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
|
|
Page 6 of 10
|
|
NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
|
|
(unaudited, dollars in thousands)
|
|
Assets
|
March 31,
2019 |
December 31,
2018 |
||||
|
Cash and due from banks
|
$
|
143,989
|
$
|
175,550
|
||
|
Short-term interest bearing accounts
|
33,130
|
5,405
|
||||
|
Equity securities, at fair value
|
25,482
|
23,053
|
||||
|
Securities available for sale, at fair value
|
951,859
|
998,496
|
||||
|
Securities held to maturity (fair value $782,761 and $778,675)
|
780,565
|
783,599
|
||||
|
Federal Reserve and Federal Home Loan Bank stock
|
43,957
|
53,229
|
||||
|
Loans held for sale
|
8,525
|
6,943
|
||||
|
Loans
|
6,890,312
|
6,887,709
|
||||
|
Less allowance for loan losses
|
71,405
|
72,505
|
||||
|
Net loans
|
$
|
6,818,907
|
$
|
6,815,204
|
||
|
Premises and equipment, net
|
78,391
|
78,970
|
||||
|
Goodwill
|
274,769
|
274,769
|
||||
|
Intangible assets, net
|
14,631
|
15,599
|
||||
|
Bank owned life insurance
|
178,856
|
177,479
|
||||
|
Other assets
|
180,449
|
148,067
|
||||
|
Total assets
|
$
|
9,533,510
|
$
|
9,556,363
|
||
|
Liabilities and stockholders' equity
|
||||||
|
Demand (noninterest bearing)
|
$
|
2,324,981
|
$
|
2,361,099
|
||
|
Savings, NOW and money market
|
4,370,374
|
4,076,434
|
||||
|
Time
|
922,304
|
930,678
|
||||
|
Total deposits
|
$
|
7,617,659
|
$
|
7,368,211
|
||
|
Short-term borrowings
|
544,883
|
871,696
|
||||
|
Long-term debt
|
73,696
|
73,724
|
||||
|
Junior subordinated debt
|
101,196
|
101,196
|
||||
|
Other liabilities
|
162,021
|
123,627
|
||||
|
Total liabilities
|
$
|
8,499,455
|
$
|
8,538,454
|
||
|
Total stockholders' equity
|
$
|
1,034,055
|
$
|
1,017,909
|
||
|
Total liabilities and stockholders' equity
|
$
|
9,533,510
|
$
|
9,556,363
|
||
|
Page 7 of 10
|
|
NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
|
|
(unaudited, dollars in thousands except per share data)
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
2018
|
|||||
|
Interest, fee and dividend income
|
||||||
|
Interest and fees on loans
|
$
|
79,321
|
$
|
70,443
|
||
|
Securities available for sale
|
5,922
|
6,926
|
||||
|
Securities held to maturity
|
5,217
|
2,625
|
||||
|
Other
|
884
|
766
|
||||
|
Total interest, fee and dividend income
|
$
|
91,344
|
$
|
80,760
|
||
|
Interest expense
|
||||||
|
Deposits
|
$
|
8,826
|
$
|
3,931
|
||
|
Short-term borrowings
|
3,237
|
1,966
|
||||
|
Long-term debt
|
422
|
476
|
||||
|
Junior subordinated debt
|
1,168
|
901
|
||||
|
Total interest expense
|
$
|
13,653
|
$
|
7,274
|
||
|
Net interest income
|
$
|
77,691
|
$
|
73,486
|
||
|
Provision for loan losses
|
5,807
|
7,496
|
||||
|
Net interest income after provision for loan losses
|
$
|
71,884
|
$
|
65,990
|
||
|
Noninterest income
|
||||||
|
Insurance and other financial services revenue
|
$
|
6,756
|
$
|
6,504
|
||
|
Service charges on deposit accounts
|
4,236
|
3,972
|
||||
|
ATM and debit card fees
|
5,525
|
5,273
|
||||
|
Retirement plan administration fees
|
7,734
|
5,339
|
||||
|
Trust
|
4,551
|
4,878
|
||||
|
Bank owned life insurance income
|
1,377
|
1,347
|
||||
|
Net securities gains
|
57
|
72
|
||||
|
Other
|
3,585
|
3,892
|
||||
|
Total noninterest income
|
$
|
33,821
|
$
|
31,277
|
||
|
Noninterest expense
|
||||||
|
Salaries and employee benefits
|
$
|
39,356
|
$
|
36,567
|
||
|
Occupancy
|
6,275
|
6,119
|
||||
|
Data processing and communications
|
4,414
|
4,279
|
||||
|
Professional fees and outside services
|
3,668
|
3,492
|
||||
|
Equipment
|
4,757
|
4,038
|
||||
|
Office supplies and postage
|
1,591
|
1,573
|
||||
|
FDIC expense
|
1,017
|
1,201
|
||||
|
Advertising
|
503
|
337
|
||||
|
Amortization of intangible assets
|
968
|
914
|
||||
|
Loan collection and other real estate owned, net
|
785
|
1,337
|
||||
|
Other
|
5,126
|
4,415
|
||||
|
Total noninterest expense
|
$
|
68,460
|
$
|
64,272
|
||
|
Income before income tax expense
|
$
|
37,245
|
$
|
32,995
|
||
|
Income tax expense
|
8,118
|
7,009
|
||||
|
Net income
|
$
|
29,127
|
$
|
25,986
|
||
|
Earnings Per Share
|
||||||
|
Basic
|
$
|
0.67
|
$
|
0.60
|
||
|
Diluted
|
$
|
0.66
|
$
|
0.59
|
||
|
Page 8 of 10
|
|
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
|
|
(unaudited, dollars in thousands except per share data)
|
|
2019
|
2018
|
||||||||||||||
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||
|
Interest, fee and dividend income
|
|||||||||||||||
|
Interest and fees on loans
|
$
|
79,321
|
$
|
78,963
|
$
|
77,249
|
$
|
74,172
|
$
|
70,443
|
|||||
|
Securities available for sale
|
5,922
|
6,332
|
6,659
|
7,003
|
6,926
|
||||||||||
|
Securities held to maturity
|
5,217
|
4,344
|
3,462
|
2,811
|
2,625
|
||||||||||
|
Other
|
884
|
885
|
834
|
781
|
766
|
||||||||||
|
Total interest, fee and dividend income
|
$
|
91,344
|
$
|
90,524
|
$
|
88,204
|
$
|
84,767
|
$
|
80,760
|
|||||
|
Interest expense
|
|||||||||||||||
|
Deposits
|
$
|
8,826
|
$
|
6,977
|
$
|
6,157
|
$
|
5,079
|
$
|
3,931
|
|||||
|
Short-term borrowings
|
3,237
|
3,131
|
3,000
|
2,455
|
1,966
|
||||||||||
|
Long-term debt
|
422
|
431
|
431
|
452
|
476
|
||||||||||
|
Junior subordinated debt
|
1,168
|
1,110
|
1,089
|
1,040
|
901
|
||||||||||
|
Total interest expense
|
$
|
13,653
|
$
|
11,649
|
$
|
10,677
|
$
|
9,026
|
$
|
7,274
|
|||||
|
Net interest income
|
$
|
77,691
|
$
|
78,875
|
$
|
77,527
|
$
|
75,741
|
$
|
73,486
|
|||||
|
Provision for loan losses
|
5,807
|
6,528
|
6,026
|
8,778
|
7,496
|
||||||||||
|
Net interest income after provision for loan losses
|
$
|
71,884
|
$
|
72,347
|
$
|
71,501
|
$
|
66,963
|
$
|
65,990
|
|||||
|
Noninterest income
|
|||||||||||||||
|
Insurance and other financial services revenue
|
$
|
6,756
|
$
|
5,843
|
$
|
6,172
|
$
|
5,826
|
$
|
6,504
|
|||||
|
Service charges on deposit accounts
|
4,236
|
4,503
|
4,503
|
4,246
|
3,972
|
||||||||||
|
ATM and debit card fees
|
5,525
|
5,704
|
5,906
|
5,816
|
5,273
|
||||||||||
|
Retirement plan administration fees
|
7,734
|
7,113
|
7,244
|
7,296
|
5,339
|
||||||||||
|
Trust
|
4,551
|
4,573
|
4,808
|
5,265
|
4,878
|
||||||||||
|
Bank owned life insurance income
|
1,377
|
1,239
|
1,288
|
1,217
|
1,347
|
||||||||||
|
Net securities gains (losses)
|
57
|
(6,916
|
)
|
412
|
91
|
72
|
|||||||||
|
Other
|
3,585
|
3,887
|
3,048
|
4,401
|
3,892
|
||||||||||
|
Total noninterest income
|
$
|
33,821
|
$
|
25,946
|
$
|
33,381
|
$
|
34,158
|
$
|
31,277
|
|||||
|
Noninterest expense
|
|||||||||||||||
|
Salaries and employee benefits
|
$
|
39,356
|
$
|
38,998
|
$
|
38,394
|
$
|
37,726
|
$
|
36,567
|
|||||
|
Occupancy
|
6,275
|
5,284
|
5,380
|
5,535
|
6,119
|
||||||||||
|
Data processing and communications
|
4,414
|
4,431
|
4,434
|
4,508
|
4,279
|
||||||||||
|
Professional fees and outside services
|
3,668
|
3,968
|
3,580
|
3,336
|
3,492
|
||||||||||
|
Equipment
|
4,757
|
4,529
|
4,319
|
4,151
|
4,038
|
||||||||||
|
Office supplies and postage
|
1,591
|
1,564
|
1,563
|
1,504
|
1,573
|
||||||||||
|
FDIC expense
|
1,017
|
1,135
|
1,223
|
1,092
|
1,201
|
||||||||||
|
Advertising
|
503
|
1,006
|
739
|
700
|
337
|
||||||||||
|
Amortization of intangible assets
|
968
|
978
|
1,054
|
1,096
|
914
|
||||||||||
|
Loan collection and other real estate owned, net
|
785
|
738
|
1,234
|
908
|
1,337
|
||||||||||
|
Other
|
5,126
|
6,273
|
4,577
|
4,332
|
4,415
|
||||||||||
|
Total noninterest expense
|
$
|
68,460
|
$
|
68,904
|
$
|
66,497
|
$
|
64,888
|
$
|
64,272
|
|||||
|
Income before income tax expense
|
$
|
37,245
|
$
|
29,389
|
$
|
38,385
|
$
|
36,233
|
$
|
32,995
|
|||||
|
Income tax expense
|
8,118
|
737
|
8,578
|
8,112
|
7,009
|
||||||||||
|
Net income
|
$
|
29,127
|
$
|
28,652
|
$
|
29,807
|
$
|
28,121
|
$
|
25,986
|
|||||
|
Earnings Per Share
|
|||||||||||||||
|
Basic
|
$
|
0.67
|
$
|
0.66
|
$
|
0.68
|
$
|
0.64
|
$
|
0.60
|
|||||
|
Diluted
|
$
|
0.66
|
$
|
0.65
|
$
|
0.68
|
$
|
0.64
|
$
|
0.59
|
|||||
|
Page 9 of 10
|
|
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
|
|||||||||||||||||||||||||||
|
|
Q1 - 2019
|
Q4 - 2018
|
Q3 - 2018
|
Q2 - 2018
|
Q1 - 2018
|
|||||||||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||||||||||||||
|
Short-term interest bearing accounts
|
$
|
9,065
|
4.07
|
%
|
$
|
3,780
|
5.25
|
%
|
$
|
3,328
|
6.08
|
%
|
$
|
3,574
|
5.16
|
%
|
$
|
2,818
|
5.18
|
%
|
||||||||||||||||
|
Securities available for sale (1) (3)
|
984,704
|
2.45
|
%
|
1,104,198
|
2.29
|
%
|
1,197,910
|
2.22
|
%
|
1,266,304
|
2.23
|
%
|
1,273,634
|
2.22
|
%
|
|||||||||||||||||||||
|
Securities held to maturity (1) (3)
|
782,570
|
2.90
|
%
|
688,840
|
2.73
|
%
|
591,220
|
2.58
|
%
|
503,501
|
2.50
|
%
|
482,375
|
2.48
|
%
|
|||||||||||||||||||||
|
Investment in FRB and FHLB Banks
|
49,152
|
6.54
|
%
|
47,689
|
6.95
|
%
|
50,107
|
6.20
|
%
|
48,184
|
6.12
|
%
|
46,844
|
6.32
|
%
|
|||||||||||||||||||||
|
Loans (2) (3)
|
6,886,672
|
4.68
|
%
|
6,876,341
|
4.56
|
%
|
6,839,565
|
4.49
|
%
|
6,750,710
|
4.41
|
%
|
6,592,447
|
4.34
|
%
|
|||||||||||||||||||||
|
Total interest earning assets
|
$
|
8,712,163
|
4.28
|
%
|
$
|
8,720,848
|
4.14
|
%
|
$
|
8,682,130
|
4.05
|
%
|
$
|
8,572,273
|
3.99
|
%
|
$
|
8,398,118
|
3.92
|
%
|
||||||||||||||||
|
Other assets
|
795,585
|
769,302
|
776,219
|
766,604
|
746,172
|
|||||||||||||||||||||||||||||||
|
Total assets
|
$
|
9,507,748
|
$
|
9,490,150
|
$
|
9,458,349
|
$
|
9,338,877
|
$
|
9,144,290
|
||||||||||||||||||||||||||
|
Liabilities and stockholders' equity
|
||||||||||||||||||||||||||||||||||||
|
Money market deposit accounts
|
$
|
1,804,053
|
0.99
|
%
|
$
|
1,745,980
|
0.65
|
%
|
$
|
1,724,853
|
0.58
|
%
|
$
|
1,699,956
|
0.43
|
%
|
$
|
1,655,308
|
0.27
|
%
|
||||||||||||||||
|
NOW deposit accounts
|
1,135,213
|
0.16
|
%
|
1,166,383
|
0.18
|
%
|
1,164,513
|
0.17
|
%
|
1,222,889
|
0.16
|
%
|
1,211,029
|
0.13
|
%
|
|||||||||||||||||||||
|
Savings deposits
|
1,252,042
|
0.06
|
%
|
1,250,703
|
0.06
|
%
|
1,279,520
|
0.06
|
%
|
1,289,062
|
0.06
|
%
|
1,248,432
|
0.06
|
%
|
|||||||||||||||||||||
|
Time deposits
|
942,457
|
1.64
|
%
|
921,252
|
1.47
|
%
|
881,792
|
1.33
|
%
|
858,080
|
1.22
|
%
|
802,959
|
1.13
|
%
|
|||||||||||||||||||||
|
Total interest bearing deposits
|
$
|
5,133,765
|
0.70
|
%
|
$
|
5,084,318
|
0.54
|
%
|
$
|
5,050,678
|
0.48
|
%
|
$
|
5,069,987
|
0.40
|
%
|
$
|
4,917,728
|
0.32
|
%
|
||||||||||||||||
|
Short-term borrowings
|
712,306
|
1.84
|
%
|
724,693
|
1.71
|
%
|
766,372
|
1.55
|
%
|
706,694
|
1.39
|
%
|
712,220
|
1.12
|
%
|
|||||||||||||||||||||
|
Long-term debt
|
73,707
|
2.32
|
%
|
73,735
|
2.32
|
%
|
73,762
|
2.32
|
%
|
84,676
|
2.14
|
%
|
88,844
|
2.17
|
%
|
|||||||||||||||||||||
|
Junior subordinated debt
|
101,196
|
4.68
|
%
|
101,196
|
4.35
|
%
|
101,196
|
4.27
|
%
|
101,196
|
4.12
|
%
|
101,196
|
3.61
|
%
|
|||||||||||||||||||||
|
Total interest bearing liabilities
|
$
|
6,020,974
|
0.92
|
%
|
$
|
5,983,942
|
0.77
|
%
|
$
|
5,992,008
|
0.71
|
%
|
$
|
5,962,553
|
0.61
|
%
|
$
|
5,819,988
|
0.51
|
%
|
||||||||||||||||
|
Demand deposits
|
2,309,531
|
2,373,235
|
2,356,216
|
2,294,023
|
2,259,955
|
|||||||||||||||||||||||||||||||
|
Other liabilities
|
151,490
|
130,151
|
121,574
|
113,272
|
105,303
|
|||||||||||||||||||||||||||||||
|
Stockholders' equity
|
1,025,753
|
1,002,822
|
988,551
|
969,029
|
959,044
|
|||||||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$
|
9,507,748
|
$
|
9,490,150
|
$
|
9,458,349
|
$
|
9,338,877
|
$
|
9,144,290
|
||||||||||||||||||||||||||
|
Interest rate spread
|
3.36
|
%
|
3.37
|
%
|
3.34
|
%
|
3.38
|
%
|
3.41
|
%
|
||||||||||||||||||||||||||
|
Net interest margin (FTE) (3)
|
3.64
|
%
|
3.61
|
%
|
3.57
|
%
|
3.57
|
%
|
3.57
|
%
|
||||||||||||||||||||||||||
|
(1)
|
Securities are shown at average amortized cost.
|
|
(2)
|
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
|
|
(3)
|
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. The
total amount of adjustment to present yields on a FTE basis is $500, $535, $529, $478 and $465 for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.
|
|
Page 10 of 10
|
|
NBT Bancorp Inc. and Subsidiaries
Consolidated Loan Balances |
|
(unaudited, dollars in thousands)
|
|
2019
|
2018
|
||||||||||||||
|
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||
|
Commercial
|
$
|
1,306,551
|
$
|
1,291,568
|
$
|
1,310,262
|
$
|
1,299,437
|
$
|
1,252,729
|
|||||
|
Commercial real estate
|
1,943,931
|
1,930,742
|
1,902,315
|
1,891,119
|
1,795,101
|
||||||||||
|
Residential real estate mortgages
|
1,390,411
|
1,380,836
|
1,373,487
|
1,350,336
|
1,331,587
|
||||||||||
|
Dealer finance
|
1,191,111
|
1,216,144
|
1,229,700
|
1,252,843
|
1,238,051
|
||||||||||
|
Specialty lending
|
529,144
|
524,928
|
521,396
|
507,151
|
469,268
|
||||||||||
|
Home equity
|
463,582
|
474,566
|
480,761
|
488,493
|
491,807
|
||||||||||
|
Other consumer
|
65,582
|
68,925
|
69,341
|
68,792
|
67,179
|
||||||||||
|
Total loans
|
$
|
6,890,312
|
$
|
6,887,709
|
$
|
6,887,262
|
$
|
6,858,171
|
$
|
6,645,722
|
|||||