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FOR IMMEDIATE RELEASE

John V. Moran, Executive Vice President and CFO

NBT Bancorp Inc.

52 South Broad Street

Norwich, NY 13815

607-337-6589

NBT BANCORP INC. ANNOUNCES FIRST QUARTER NET INCOME OF $39.8 MILLION ($0.91 PER DILUTED COMMON SHARE); APPROVES DIVIDEND

NORWICH, NY (April 26, 2021) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2021.

 

Net income for the three months ended March 31, 2021 was $39.8 million, or $0.91 per diluted common share. Net income increased $5.7 million from the previous quarter primarily due to lower provision for loan losses and branch optimization charges recognized in the previous quarter. Net income increased $29.5 million from the first quarter of 2020 due to the adoption of the Current Expected Credit Losses (“CECL”) accounting methodology, including the estimated impact of the COVID-19 pandemic on expected credit losses, which resulted in first quarter 2020 provision for loan losses of $29.6 million.

Pre-provision net revenue (“PPNR”)¹ for the first quarter of 2021 was $47.5 million compared to $48.2 million in the previous quarter and $44.9 million in the first quarter of 2020.

 

CEO Comments

“The results for the first quarter of 2021 demonstrate the resiliency of our banking platform. We drove commercial loan growth and experienced increased levels of consumer activity. Our mortgage pipeline is strong, and our indirect auto business exceeded production targets,” said NBT President and CEO John H. Watt, Jr. “We are optimistic about the prospects for the rest of the year driven by pent up demand and a snap back in many sectors of the economy that we anticipate will occur as the markets we serve continue to open up. Sustained levels of excellent credit quality allow for plenty of optionality in the deployment of capital which will drive growth. Record Assets Under Management and Administration in our wealth management business exceeded $9 billion. Finally, we leaned heavily into the Paycheck Protection Program in the latest round of funding to support the Main Street businesses and non-profits that are the backbone of the communities we serve.”

First Quarter Financial Highlights

Loans

Deposits

Net Interest Income and Net Interest Margin

 

Credit Quality and Allowance for Credit Losses

Noninterest Income

 

Noninterest Expense

Income Taxes

Capital

Stock Repurchase and Dividend

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 27, 2021, to review first quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.

Corporate Overview

Forward-Looking Statements

 

This news 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 Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; (17) changes in the Company’s organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

Currently, one of the most 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 and its impact 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. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not 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 SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected. 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 the United States of America (“GAAP”). 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 provide useful information that is important to an understanding of the results of the Company’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 the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)
		2021				2020
		1st Q				4th Q				3rd Q				2nd Q				1st Q
Profitability:
Diluted earnings per share		$	0.91			$	0.78			$	0.80			$	0.56			$	0.23
Weighted average diluted common shares outstanding			43,889,889				43,973,971				43,941,953				43,928,344				44,130,324
Return on average assets3			1.46	%			1.24	%			1.29	%			0.94	%			0.43	%
Return on average equity3			13.57	%			11.59	%			12.09	%			8.76	%			3.69	%
Return on average tangible common equity1 3			18.24	%			15.71	%			16.51	%			12.14	%			5.24	%
Net interest margin1 3			3.17	%			3.20	%			3.17	%			3.38	%			3.52	%
			2021			2020
		1st Q				4th Q				3rd Q				2nd Q				1st Q
Balance sheet data:
Securities available for sale		$	1,387,028			$	1,348,698			$	1,197,925			$	1,108,443			$	1,000,980
Securities held to maturity			592,999				616,560				663,088				599,164				621,359
Net loans			7,528,459				7,388,885				7,446,143				7,514,491				7,147,383
Total assets			11,537,253				10,932,906				10,850,212				10,847,184				9,953,543
Total deposits			9,815,930				9,081,692				8,958,183				8,815,891				7,864,638
Total borrowings			308,766				406,731				446,737				602,988				714,283
Total liabilities			10,346,272				9,745,288				9,684,101				9,704,532				8,841,364
Stockholders' equity			1,190,981				1,187,618				1,166,111				1,142,652				1,112,179
Capital:
Equity to assets			10.32	%			10.86	%			10.75	%			10.53	%			11.17	%
Tangible equity ratio1			8.00	%			8.41	%			8.27	%			8.04	%			8.55	%
Book value per share		$	27.43			$	27.22			$	26.74			$	26.20			$	25.52
Tangible book value per share2		$	20.71			$	20.52			$	20.02			$	19.46			$	18.96
Leverage ratio			9.60	%			9.56	%			9.48	%			9.44	%			10.02	%
Common equity tier 1 capital ratio			12.13	%			11.84	%			11.63	%			11.34	%			10.90	%
Tier 1 capital ratio			13.38	%			13.09	%			12.88	%			12.60	%			12.14	%
Total risk-based capital ratio			15.92	%			15.62	%			15.43	%			15.15	%			13.36	%
Common stock price (end of period)		$	39.90			$	32.10			$	26.82			$	30.06			$	32.39