|
|
|
||
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of class
|
Trading Symbol
|
Name of exchange on which registered
|
||
|
|
|
Item 2.02 |
Results of Operations and Financial Condition
|
Item 9.01 |
Financial Statements and Exhibits.
|
(a)
|
Not applicable.
|
(b)
|
Not applicable.
|
(c)
|
Not applicable.
|
(d)
|
Exhibits.
|
Exhibit No.
|
Description
|
Press release of NBT Bancorp Inc. April 24, 2023
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
NBT BANCORP INC.
|
||
Date: April 24, 2023
|
By:
|
/s/ Scott A. Kingsley
|
Scott A. Kingsley
|
||
Executive Vice President and Chief Financial Officer
|
Contact:
|
John H. Watt, Jr., President and CEO
|
Scott A. Kingsley, Executive Vice President and CFO
|
|
NBT Bancorp Inc.
|
|
52 South Broad Street
|
|
Norwich, NY 13815
|
|
607-337-6589
|
◾ |
Excluding the impact of securities losses and acquisition expenses, the Company generated $0.88 per diluted share of earnings in the first quarter of 2023, compared to $0.86 per share in the fourth
quarter of 2022 and $0.91 per share in the first quarter of 2022.
|
◾ |
Net interest income in the first quarter of 2023 increased 18% in comparison to the first quarter of 2022, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s
targeted Federal Funds rate as well as the new loan volume pricing, which was partially offset by the higher cost of interest-bearing liabilities. The first quarter of 2022 also included $2.0 million ($0.04 per diluted share) of income from
the Paycheck Protection Program (“PPP”).
|
◾ |
The Company recorded a provision for loan losses of $3.9 million ($0.07 per diluted share) in the first quarter of 2023, compared to $0.6 million ($0.01 per diluted share) in the first quarter of
2022.
|
◾ |
First quarter card services income was approximately $4.0 million ($0.07 per diluted share) lower than last year’s first quarter driven by the impact of the statutory price cap provisions of the
Durbin Amendment to the Dodd-Frank Act (“Durbin Amendment”) beginning in the third quarter of 2022.
|
◾ |
In the first quarter of 2023, the Company incurred a $5.0 million ($0.09 per diluted share) securities loss on the write-off of a subordinated debt security of a failed bank.
|
◾ |
The Company incurred acquisition expenses of $0.6 million ($0.01 per diluted share) and $1.0 million ($0.02 per diluted share) related to the pending merger with Salisbury Bancorp, Inc. (“Salisbury”) in the first quarter of 2023 and the fourth quarter of 2022, respectively.
|
Net Income
|
◾ Net income of $33.7 million
◾ Diluted earnings per share of $0.78
◾ Excluding acquisition expenses and securities losses, diluted earnings per share of $0.88
|
Net Interest Income / NIM
|
◾ Net interest income on a fully taxable equivalent (“FTE”) basis was $95.5 million1
◾ Net interest margin (“NIM”) on an FTE basis was 3.55%1, down 13 basis
points (“bps”) from the prior quarter
◾ Earning asset yields of 4.26%, up 24 bps from the prior quarter
◾ Total cost of funds of 0.75%, up 38 bps from the prior quarter
|
Noninterest Income
|
◾ Noninterest income was $36.4 million, excluding securities losses and was 27.7% of
total revenue
|
Loans and Credit Quality
|
◾ Period end total loans of $8.26 billion at March 31, 2023, up $114.4 million, or
1.4%, from December 31, 2022
◾ Net charge-offs to average loans was 0.19%, annualized
◾ Nonperforming loans to total loans was 0.23%, down from 0.26% in the prior quarter
and 0.36% in the first quarter of 2022
◾ Allowance for loan losses to total loans of 1.21%
|
Deposits
|
◾ Deposits were $9.68 billion as of March 31, 2023, up 2% from December 31, 2022
◾ Total cost of deposits was 0.47% for the first quarter of 2023, up 30
bps from the prior quarter
◾ Deposit composition is diverse and granular with over 521,000 accounts with an
average per account balance of $18,554
|
Capital
|
◾ Stockholders’ equity was $1.21 billion as of March 31, 2023
◾ Tangible book value per share2 was $21.52 at March 31, 2023, 4.2% higher
than fourth quarter of 2022 and 1.3% higher than the first quarter of 2022
◾ Tangible equity to assets of 7.99%1
◾ CET1 ratio of 12.28%; Leverage ratio of 10.43%
|
◾ |
Period end total loans were $8.26 billion at March 31, 2023 and $8.15 billion at December 31, 2022.
|
◾ |
Period end loans increased $114.4 million from December 31, 2022. Commercial and industrial loans increased $12.3 million to $1.28 billion; commercial real estate loans increased $37.7 million to
$2.85 billion; and total consumer loans increased $64.5 million to $4.14 billion.
|
◾ |
Commercial line of credit utilization rate was 22% at March 31, 2023, compared to 21% at December 31, 2022 and 23% at March 31, 2022.
|
◾ |
Total deposits at March 31, 2023 were $9.68 billion, compared to $9.50 billion at December 31, 2022. The increase in deposits was concentrated in time and money market accounts with seasonal
municipal deposit inflows during the quarter.
|
◾ |
Loan to deposit ratio was 85.4% at March 31, 2023, compared to 85.8% at December 31, 2022.
|
◾ |
Net interest income for the first quarter of 2023 was $95.1 million, which was down $4.7 million, or 4.7%, from the
fourth quarter of 2022 and up $14.7 million, or 18.3%, from the first quarter of 2022, and included two less days in the quarter compared to the fourth quarter.
|
◾ |
The NIM on an FTE basis for the first quarter of 2023 was 3.55%, down 13 bps from the fourth quarter of 2022 driven by the increase in yields on interest-bearing deposits, as well as higher
balances in short-term borrowings and the rates paid on those borrowings. The NIM on an FTE basis was up 60 bps from the first quarter of 2022 due to higher earning asset yields partially offset by higher cost of interest-bearing
liabilities.
|
◾ |
Earning asset yields for the three months ended March 31, 2023 were up 24 bps from the prior quarter and up 117 bps from the same quarter in the prior year. Earning assets grew $108.8 million, or
1.0%, from the fourth quarter of 2022, or 4.1% annualized. The following are highlights comparing the first quarter of 2023 to the prior quarter:
|
o |
Loan yields increased 28 bps to 5.00%.
|
o |
Average short-term borrowings increased $162.4 million, quarter over quarter.
|
◾ |
Total cost of deposits, including noninterest bearing deposits, was 0.47% for the first quarter of 2023, up 30 bps from the prior quarter and up 40 bps from the same period in the prior year.
|
◾ |
Total cost of funds for the three months ended March 31, 2023 was 0.75%, up 38 bps from the prior quarter and up 60 bps from the first quarter of 2022.
|
◾ |
Net charge-offs to total average loans was 19 bps compared to 18 bps in the prior quarter and 14 bps in the first quarter of 2022. The increase in net charge-offs from the first quarter of 2022 was
from higher charge-offs in the Company’s other consumer portfolio, which is in a run-off status.
|
◾ |
Nonperforming assets to total assets were 0.16% at March 31, 2023, compared to 0.18% at December 31, 2022 and 0.23% at March 31, 2022.
|
◾ |
Provision expense for the three months ended March 31, 2023 was $3.9 million with net charge-offs of $3.8 million. Provision expense was $3.8 million lower than the fourth quarter of 2022 and $3.3
million higher than the first quarter of 2022. The decrease in provision expense from the fourth quarter of 2022 was due to a lower level of loan growth in the first quarter, generally stable economic forecasts and portfolio mix composition
and quality.
|
◾ |
The allowance for loan losses was $100.3 million, or 1.21% of total loans, at March 31, 2023, compared to 1.24% of total loans at December 31, 2022 and 1.18% of total loans at March 31, 2022. The
adoption of the accounting changes for troubled debt restructurings on January 1, 2023 reduced the allowance for loan losses by $0.6 million to $100.2 million, or 1.22% of total loans. The reserve for unfunded loan commitments decreased to
$4.5 million at March 31, 2023 compared to the prior quarter-end at $5.1 million and to $4.8 million at March 31, 2022.
|
◾ |
Total noninterest income, excluding securities losses, was $36.4 million for the three months ended March 31, 2023, up $2.1 million from the fourth quarter and down $6.4 million from the prior
year’s first quarter.
|
◾ |
Card services income was comparable to the prior quarter and approximately $4 million lower than the first quarter of 2022 driven by the impact on debit interchange revenues from the statutory
price cap provisions of the Durbin Amendment.
|
◾ |
Retirement plan administration fees were seasonally higher than the fourth quarter of 2022 and were lower than the first quarter of 2022 driven by market performance and a decrease in
activity-based fees which were primarily statutory plan document restatement requirements.
|
◾ |
Wealth management fees were comparable to the prior quarter, but lower than the first quarter of 2022 driven primarily by a decline in market performance.
|
◾ |
In the first quarter of 2023, the Company recorded a $5.0 million ($0.09 per diluted share) securities loss related to the write-off of a subordinated debt security of a failed bank.
|
◾ |
Total noninterest expense, excluding $0.6 million of acquisition expenses in the first quarter of 2023 and $1.0 million in the fourth quarter of 2022, was comparable to the previous quarter and up
9.1% from the first quarter of 2022.
|
◾ |
Salaries and benefits increased 1.9% from the prior quarter driven by seasonally higher payroll taxes, seasonally higher stock-based compensation expenses and merit pay increases. The increase from
the first quarter of 2022 was driven by increased salaries and wages, including merit pay increases and higher benefit plan expenses and staff additions.
|
◾ |
Technology and data services expenses were comparable with the prior quarter and increased from the first quarter of 2022 due to continued investment in digital platform solutions.
|
◾ |
Occupancy costs increased from the prior quarter and the first quarter of 2022 driven by seasonal costs including utility expenses.
|
◾ |
Professional fees and outside services expenses were lower than the prior quarter due to seasonal expenses and timing of external services for several tactical and strategic initiatives incurred in
the prior quarter and were comparable to the first quarter of 2022.
|
◾ |
FDIC assessment expense increased $0.6 million ($0.01 per diluted share) from the prior quarter and the first quarter of 2022 driven by the statutory increase in the FDIC assessment rate.
|
◾ |
Loan collection and other real estate owned were comparable to the prior quarter and higher than the first quarter of 2022 due to an offsetting gain on the sale of a property in the first quarter
of 2022.
|
◾ |
Other expenses declined from the seasonally higher linked fourth quarter of 2022. The first quarter of 2023 was $2.0 million higher than the prior year first quarter due to the increase in
actuarially determined amortization expense related to the Company’s retirement plans and higher travel and training expenses due to increased activity compared to the pandemic-impacted first quarter of 2022.
|
◾ |
The effective tax rate was 22.2% for the first quarter of 2023, compared to 22.6% for the fourth quarter of 2022 and 22.2% for the first quarter of 2022.
|
◾ |
Capital ratios remain strong with tangible common equity to tangible assets1 at 7.99%. Tangible book value per share2 was $21.52 at March 31, 2023, $20.65 at December 30, 2022
and $21.25 at March 31, 2022.
|
◾ |
Stockholders’ equity increased $38.1 million from December 31, 2022 driven by net income generation of $33.7 million and a $16.1 million increase in accumulated other comprehensive income due
primarily to the change in the market value of securities available for sale, partly offset by dividends declared of $12.9 million.
|
◾ |
March 31, 2023, CET1 capital ratio of 12.28%, leverage ratio of 10.43% and total risk-based capital ratio of 15.53%.
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Selected Financial Data
|
||||||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Profitability:
|
||||||||||||||||||||
Diluted earnings per share
|
$
|
0.78
|
$
|
0.84
|
$
|
0.90
|
$
|
0.88
|
$
|
0.90
|
||||||||||
Weighted average diluted common shares outstanding
|
43,125,986
|
43,144,666
|
43,110,932
|
43,092,851
|
43,385,451
|
|||||||||||||||
Return on average assets3
|
1.16
|
%
|
1.23
|
%
|
1.33
|
%
|
1.28
|
%
|
1.32
|
%
|
||||||||||
Return on average equity3
|
11.47
|
%
|
12.30
|
%
|
12.87
|
%
|
12.73
|
%
|
12.78
|
%
|
||||||||||
Return on average tangible common equity1 3
|
15.31
|
%
|
16.54
|
%
|
17.12
|
%
|
17.00
|
%
|
16.87
|
%
|
||||||||||
Net interest margin1 3
|
3.55
|
%
|
3.68
|
%
|
3.51
|
%
|
3.21
|
%
|
2.95
|
%
|
||||||||||
2023
|
2022
|
|||||||||||||||||||
|
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
|||||||||||||||
Balance sheet data:
|
||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
68,045
|
$
|
30,862
|
$
|
97,303
|
$
|
328,593
|
$
|
913,315
|
||||||||||
Securities available for sale
|
1,512,008
|
1,527,225
|
1,556,501
|
1,619,356
|
1,662,697
|
|||||||||||||||
Securities held to maturity
|
906,824
|
919,517
|
929,541
|
936,512
|
895,005
|
|||||||||||||||
Net loans
|
8,164,328
|
8,049,347
|
7,807,984
|
7,684,081
|
7,559,826
|
|||||||||||||||
Total assets
|
11,839,730
|
11,739,296
|
11,640,742
|
11,720,459
|
12,147,833
|
|||||||||||||||
Total deposits
|
9,681,205
|
9,495,933
|
9,918,751
|
10,028,708
|
10,461,623
|
|||||||||||||||
Total borrowings
|
703,248
|
787,950
|
277,889
|
265,796
|
278,788
|
|||||||||||||||
Total liabilities
|
10,628,071
|
10,565,742
|
10,484,196
|
10,531,903
|
10,945,583
|
|||||||||||||||
Stockholders' equity
|
1,211,659
|
1,173,554
|
1,156,546
|
1,188,556
|
1,202,250
|
|||||||||||||||
Capital:
|
||||||||||||||||||||
Equity to assets
|
10.23
|
%
|
10.00
|
%
|
9.94
|
%
|
10.14
|
%
|
9.90
|
%
|
||||||||||
Tangible equity ratio1
|
7.99
|
%
|
7.73
|
%
|
7.64
|
%
|
7.87
|
%
|
7.70
|
%
|
||||||||||
Book value per share
|
$
|
28.24
|
$
|
27.38
|
$
|
27.00
|
$
|
27.75
|
$
|
27.96
|
||||||||||
Tangible book value per share2
|
$
|
21.52
|
$
|
20.65
|
$
|
20.25
|
$
|
20.99
|
$
|
21.25
|
||||||||||
Leverage ratio
|
10.43
|
%
|
10.32
|
%
|
10.21
|
%
|
9.77
|
%
|
9.52
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
12.28
|
%
|
12.12
|
%
|
12.17
|
%
|
12.14
|
%
|
12.23
|
%
|
||||||||||
Tier 1 capital ratio
|
13.34
|
%
|
13.19
|
%
|
13.27
|
%
|
13.27
|
%
|
13.39
|
%
|
||||||||||
Total risk-based capital ratio
|
15.53
|
%
|
15.38
|
%
|
15.50
|
%
|
15.50
|
%
|
15.64
|
%
|
||||||||||
Common stock price (end of period)
|
$
|
33.71
|
$
|
43.42
|
$
|
37.95
|
$
|
37.59
|
$
|
36.13
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Asset Quality and Consolidated Loan Balances
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Asset quality:
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
16,284
|
$
|
17,233
|
$
|
19,098
|
$
|
23,673
|
$
|
25,812
|
||||||||||
90 days past due and still accruing
|
2,328
|
3,823
|
2,732
|
2,096
|
1,944
|
|||||||||||||||
Total nonperforming loans
|
18,612
|
21,056
|
21,830
|
25,769
|
27,756
|
|||||||||||||||
Other real estate owned
|
105
|
105
|
-
|
-
|
-
|
|||||||||||||||
Total nonperforming assets
|
18,717
|
21,161
|
21,830
|
25,769
|
27,756
|
|||||||||||||||
Allowance for loan losses
|
100,250
|
100,800
|
96,800
|
93,600
|
90,000
|
|||||||||||||||
Asset quality ratios:
|
||||||||||||||||||||
Allowance for loan losses to total loans
|
1.21
|
%
|
1.24
|
%
|
1.22
|
%
|
1.20
|
%
|
1.18
|
%
|
||||||||||
Total nonperforming loans to total loans
|
0.23
|
%
|
0.26
|
%
|
0.28
|
%
|
0.33
|
%
|
0.36
|
%
|
||||||||||
Total nonperforming assets to total assets
|
0.16
|
%
|
0.18
|
%
|
0.19
|
%
|
0.22
|
%
|
0.23
|
%
|
||||||||||
Allowance for loan losses to total nonperforming loans
|
538.63
|
%
|
478.72
|
%
|
443.43
|
%
|
363.23
|
%
|
324.25
|
%
|
||||||||||
Past due loans to total loans4
|
0.30
|
%
|
0.33
|
%
|
0.30
|
%
|
0.40
|
%
|
0.24
|
%
|
||||||||||
Net charge-offs to average loans3
|
0.19
|
%
|
0.18
|
%
|
0.07
|
%
|
0.04
|
%
|
0.14
|
%
|
||||||||||
2023
|
2022 | |||||||||||||||||||
Loan net charge-offs by line of business:
|
|
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||
Commercial & industrial
|
$
|
(294
|
)
|
$
|
(45
|
)
|
$
|
(1,045
|
)
|
$
|
(298
|
)
|
$
|
139
|
||||||
Commercial real estate
|
42
|
8
|
324
|
(246
|
)
|
346
|
||||||||||||||
Residential real estate and home equity
|
80
|
(79
|
)
|
(56
|
)
|
(210
|
)
|
163
|
||||||||||||
Indirect auto
|
423
|
445
|
222
|
163
|
135
|
|||||||||||||||
Residential solar
|
656
|
596
|
43
|
153
|
132
|
|||||||||||||||
Other consumer
|
2,904
|
2,752
|
1,796
|
1,228
|
1,681
|
|||||||||||||||
Total loan net charge-offs
|
$
|
3,811
|
$
|
3,677
|
$
|
1,284
|
$
|
790
|
$
|
2,596
|
||||||||||
2023
|
2022 |
|||||||||||||||||||
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Allowance for loan losses as a percentage of loans by segment:
|
||||||||||||||||||||
Commercial & industrial
|
0.85
|
%
|
0.82
|
%
|
0.80
|
%
|
0.74
|
%
|
0.64
|
%
|
||||||||||
Commercial real estate
|
0.93
|
%
|
0.91
|
%
|
0.88
|
%
|
0.89
|
%
|
0.79
|
%
|
||||||||||
Residential real estate
|
0.73
|
%
|
0.72
|
%
|
0.74
|
%
|
0.79
|
%
|
0.88
|
%
|
||||||||||
Auto
|
0.77
|
%
|
0.81
|
%
|
0.78
|
%
|
0.79
|
%
|
0.76
|
%
|
||||||||||
Residential solar
|
3.04
|
%
|
3.21
|
%
|
3.08
|
%
|
3.00
|
%
|
2.97
|
%
|
||||||||||
Other consumer
|
6.19
|
%
|
6.27
|
%
|
6.67
|
%
|
6.19
|
%
|
6.24
|
%
|
||||||||||
Total
|
1.21
|
%
|
1.24
|
%
|
1.22
|
%
|
1.20
|
%
|
1.18
|
%
|
||||||||||
2023
|
2022 |
|||||||||||||||||||
Loans by line of business:
|
|
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||
Commercial & industrial
|
$
|
1,277,446
|
$
|
1,265,082
|
$
|
1,258,871
|
$
|
1,298,072
|
$
|
1,214,834
|
||||||||||
Commercial real estate
|
2,845,631
|
2,807,941
|
2,724,728
|
2,670,633
|
2,709,611
|
|||||||||||||||
Paycheck protection program
|
845
|
949
|
3,328
|
17,286
|
50,977
|
|||||||||||||||
Residential real estate
|
1,651,918
|
1,649,870
|
1,626,528
|
1,606,188
|
1,584,551
|
|||||||||||||||
Indirect auto
|
1,031,315
|
989,587
|
952,757
|
936,516
|
890,643
|
|||||||||||||||
Residential solar
|
920,084
|
856,798
|
728,898
|
599,565
|
514,526
|
|||||||||||||||
Home equity
|
308,219
|
314,124
|
313,557
|
313,395
|
319,180
|
|||||||||||||||
Other consumer
|
229,120
|
265,796
|
296,117
|
336,026
|
365,504
|
|||||||||||||||
Total loans
|
$
|
8,264,578
|
$
|
8,150,147
|
$
|
7,904,784
|
$
|
7,777,681
|
$
|
7,649,826
|
||||||||||
PPP income recognized
|
$
|
9
|
$
|
71
|
$
|
320
|
$
|
1,301
|
$
|
1,976
|
||||||||||
PPP unamortized fees
|
$
|
38
|
$
|
45
|
$
|
108
|
$
|
414
|
$
|
1,629
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||
Consolidated Balance Sheets
|
||||||||
(unaudited, dollars in thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
Assets
|
2023
|
2022
|
||||||
Cash and due from banks
|
$
|
161,750
|
$
|
166,488
|
||||
Short-term interest-bearing accounts
|
68,045
|
30,862
|
||||||
Equity securities, at fair value
|
32,807
|
30,784
|
||||||
Securities available for sale, at fair value
|
1,512,008
|
1,527,225
|
||||||
Securities held to maturity (fair value $812,664 and $812,647, respectively)
|
906,824
|
919,517
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
45,342
|
44,713
|
||||||
Loans held for sale
|
425
|
562
|
||||||
Loans
|
8,264,578
|
8,150,147
|
||||||
Less allowance for loan losses
|
100,250
|
100,800
|
||||||
Net loans
|
$
|
8,164,328
|
$
|
8,049,347
|
||||
Premises and equipment, net
|
67,868
|
69,047
|
||||||
Goodwill
|
281,204
|
281,204
|
||||||
Intangible assets, net
|
6,955
|
7,341
|
||||||
Bank owned life insurance
|
232,514
|
232,409
|
||||||
Other assets
|
359,660
|
379,797
|
||||||
Total assets
|
$
|
11,839,730
|
$
|
11,739,296
|
||||
Liabilities and stockholders' equity
|
||||||||
Demand (noninterest bearing)
|
$
|
3,429,188
|
$
|
3,617,324
|
||||
Savings, NOW and money market
|
5,467,550
|
5,444,837
|
||||||
Time
|
784,467
|
433,772
|
||||||
Total deposits
|
$
|
9,681,205
|
$
|
9,495,933
|
||||
Short-term borrowings
|
475,226
|
585,012
|
||||||
Long-term debt
|
29,790
|
4,815
|
||||||
Subordinated debt, net
|
97,036
|
96,927
|
||||||
Junior subordinated debt
|
101,196
|
101,196
|
||||||
Other liabilities
|
243,618
|
281,859
|
||||||
Total liabilities
|
$
|
10,628,071
|
$
|
10,565,742
|
||||
Total stockholders' equity
|
$
|
1,211,659
|
$
|
1,173,554
|
||||
Total liabilities and stockholders' equity
|
$
|
11,839,730
|
$
|
11,739,296
|
NBT Bancorp Inc. and Subsidiaries
|
||||||||||||||||||||
Quarterly Consolidated Statements of Income
|
||||||||||||||||||||
(unaudited, dollars in thousands except per share data)
|
||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||
1st Q
|
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Interest, fee and dividend income
|
||||||||||||||||||||
Interest and fees on loans
|
$
|
100,899
|
$
|
95,620
|
$
|
85,266
|
$
|
78,539
|
$
|
73,343
|
||||||||||
Securities available for sale
|
7,616
|
7,831
|
7,665
|
7,317
|
6,840
|
|||||||||||||||
Securities held to maturity
|
5,035
|
5,050
|
4,854
|
4,185
|
3,493
|
|||||||||||||||
Other
|
642
|
671
|
1,429
|
1,442
|
525
|
|||||||||||||||
Total interest, fee and dividend income
|
$
|
114,192
|
$
|
109,172
|
$
|
99,214
|
$
|
91,483
|
$
|
84,201
|
||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
$
|
11,144
|
$
|
4,092
|
$
|
2,233
|
$
|
1,756
|
$
|
1,842
|
||||||||||
Short-term borrowings
|
4,919
|
2,510
|
84
|
13
|
16
|
|||||||||||||||
Long-term debt
|
47
|
21
|
20
|
33
|
87
|
|||||||||||||||
Subordinated debt
|
1,334
|
1,346
|
1,360
|
1,359
|
1,359
|
|||||||||||||||
Junior subordinated debt
|
1,682
|
1,424
|
1,039
|
737
|
549
|
|||||||||||||||
Total interest expense
|
$
|
19,126
|
$
|
9,393
|
$
|
4,736
|
$
|
3,898
|
$
|
3,853
|
||||||||||
Net interest income
|
$
|
95,066
|
$
|
99,779
|
$
|
94,478
|
$
|
87,585
|
$
|
80,348
|
||||||||||
Provision for loan losses
|
3,909
|
7,677
|
4,484
|
4,390
|
596
|
|||||||||||||||
Net interest income after provision for loan losses
|
$
|
91,157
|
$
|
92,102
|
$
|
89,994
|
$
|
83,195
|
$
|
79,752
|
||||||||||
Noninterest income
|
||||||||||||||||||||
Service charges on deposit accounts
|
$
|
3,548
|
$
|
3,598
|
$
|
3,581
|
$
|
3,763
|
$
|
3,688
|
||||||||||
Card services income
|
4,845
|
4,958
|
5,654
|
9,751
|
8,695
|
|||||||||||||||
Retirement plan administration fees
|
11,462
|
10,661
|
11,496
|
12,676
|
13,279
|
|||||||||||||||
Wealth management
|
8,087
|
8,017
|
8,402
|
8,252
|
8,640
|
|||||||||||||||
Insurance services
|
3,931
|
3,438
|
3,892
|
3,578
|
3,788
|
|||||||||||||||
Bank owned life insurance income
|
1,878
|
1,419
|
1,560
|
1,411
|
1,654
|
|||||||||||||||
Net securities (losses)
|
(4,998
|
)
|
(217
|
)
|
(148
|
)
|
(587
|
)
|
(179
|
|||||||||||
Other
|
2,656
|
2,217
|
2,735
|
2,812
|
3,094
|
|||||||||||||||
Total noninterest income
|
$
|
31,409
|
$
|
34,091
|
$
|
37,172
|
$
|
41,656
|
$
|
42,659
|
||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
$
|
48,155
|
$
|
47,235
|
$
|
48,371
|
$
|
46,716
|
$
|
45,508
|
||||||||||
Technology and data services
|
9,007
|
9,124
|
9,096
|
8,945
|
8,547
|
|||||||||||||||
Occupancy
|
7,220
|
6,521
|
6,481
|
6,487
|
6,793
|
|||||||||||||||
Professional fees and outside services
|
4,178
|
4,811
|
3,817
|
3,906
|
4,276
|
|||||||||||||||
Office supplies and postage
|
1,628
|
1,699
|
1,469
|
1,548
|
1,424
|
|||||||||||||||
FDIC assessment
|
1,396
|
798
|
787
|
810
|
802
|
|||||||||||||||
Advertising
|
649
|
879
|
559
|
730
|
654
|
|||||||||||||||
Amortization of intangible assets
|
536
|
538
|
544
|
545
|
636
|
|||||||||||||||
Loan collection and other real estate owned, net
|
855
|
957
|
549
|
757
|
384
|
|||||||||||||||
Acquisition expenses
|
618
|
967
|
-
|
-
|
-
|
|||||||||||||||
Other
|
5,080
|
5,980
|
5,021
|
5,675
|
3,119
|
|||||||||||||||
Total noninterest expense
|
$
|
79,322
|
$
|
79,509
|
$
|
76,694
|
$
|
76,119
|
$
|
72,143
|
||||||||||
Income before income tax expense
|
$
|
43,244
|
$
|
46,684
|
$
|
50,472
|
$
|
48,732
|
$
|
50,268
|
||||||||||
Income tax expense
|
9,586
|
10,563
|
11,499
|
10,957
|
11,142
|
|||||||||||||||
Net income
|
$
|
33,658
|
$
|
36,121
|
$
|
38,973
|
$
|
37,775
|
$
|
39,126
|
||||||||||
Earnings Per Share
|
||||||||||||||||||||
Basic
|
$
|
0.78
|
$
|
0.84
|
$
|
0.91
|
$
|
0.88
|
$
|
0.91
|
||||||||||
Diluted
|
$
|
0.78
|
$
|
0.84
|
$
|
0.90
|
$
|
0.88
|
$
|
0.90
|
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 - 2023
|
Q4 - 2022
|
Q3 - 2022
|
Q2 - 2022
|
Q1 - 2022
|
|||||||||||||||||||||||||||||||
Assets
|
|||||||||||||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
34,215
|
2.26
|
%
|
$
|
39,573
|
3.31
|
%
|
$
|
191,463
|
2.51
|
%
|
$
|
553,548
|
0.82
|
%
|
$
|
990,319
|
0.17
|
%
|
|||||||||||||||
Securities taxable1
|
2,442,732
|
1.92
|
%
|
2,480,959
|
1.88
|
%
|
2,491,315
|
1.83
|
%
|
2,439,960
|
1.74
|
%
|
2,284,578
|
1.67
|
%
|
||||||||||||||||||||
Securities tax-exempt 1 5
|
202,321
|
2.81
|
%
|
208,238
|
2.68
|
%
|
211,306
|
2.47
|
%
|
256,799
|
1.83
|
%
|
258,513
|
1.84
|
%
|
||||||||||||||||||||
FRB and FHLB stock
|
41,144
|
4.45
|
%
|
32,903
|
4.11
|
%
|
25,182
|
3.47
|
%
|
24,983
|
5.03
|
%
|
25,026
|
1.98
|
%
|
||||||||||||||||||||
Loans1 6
|
8,189,520
|
5.00
|
%
|
8,039,442
|
4.72
|
%
|
7,808,025
|
4.34
|
%
|
7,707,730
|
4.09
|
%
|
7,530,674
|
3.95
|
%
|
||||||||||||||||||||
Total interest-earning assets
|
$
|
10,909,932
|
4.26
|
%
|
$
|
10,801,115
|
4.02
|
%
|
$
|
10,727,291
|
3.68
|
%
|
$
|
10,983,020
|
3.35
|
%
|
$
|
11,089,110
|
3.09
|
%
|
|||||||||||||||
Other assets
|
836,879
|
855,410
|
887,378
|
883,498
|
947,578
|
||||||||||||||||||||||||||||||
Total assets
|
$
|
11,746,811
|
$
|
11,656,525
|
$
|
11,614,669
|
$
|
11,866,518
|
$
|
12,036,688
|
|||||||||||||||||||||||||
Liabilities and stockholders' equity
|
|||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
$
|
2,081,210
|
1.22
|
%
|
$
|
2,169,192
|
0.39
|
%
|
$
|
2,332,341
|
0.15
|
%
|
$
|
2,577,367
|
0.14
|
%
|
$
|
2,720,338
|
0.15
|
%
|
|||||||||||||||
NOW deposit accounts
|
1,598,834
|
0.36
|
%
|
1,604,096
|
0.33
|
%
|
1,548,115
|
0.21
|
%
|
1,580,132
|
0.07
|
%
|
1,583,091
|
0.05
|
%
|
||||||||||||||||||||
Savings deposits
|
1,781,465
|
0.03
|
%
|
1,823,056
|
0.03
|
%
|
1,854,122
|
0.03
|
%
|
1,845,128
|
0.03
|
%
|
1,794,549
|
0.03
|
%
|
||||||||||||||||||||
Time deposits
|
639,645
|
2.10
|
%
|
432,110
|
0.41
|
%
|
455,168
|
0.35
|
%
|
478,531
|
0.37
|
%
|
494,632
|
0.40
|
%
|
||||||||||||||||||||
Total interest-bearing deposits
|
$
|
6,101,154
|
0.74
|
%
|
$
|
6,028,454
|
0.27
|
%
|
$
|
6,189,746
|
0.14
|
%
|
$
|
6,481,158
|
0.11
|
%
|
$
|
6,592,610
|
0.11
|
%
|
|||||||||||||||
Federal funds purchased
|
44,334
|
4.92
|
%
|
56,576
|
4.03
|
%
|
1,522
|
3.39
|
%
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Repurchase agreements
|
71,340
|
0.08
|
%
|
76,334
|
0.11
|
%
|
69,048
|
0.10
|
%
|
60,061
|
0.09
|
%
|
72,768
|
0.09
|
%
|
||||||||||||||||||||
Short-term borrowings
|
357,200
|
4.96
|
%
|
177,533
|
4.28
|
%
|
6,440
|
3.33
|
%
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Long-term debt
|
7,299
|
2.61
|
%
|
3,817
|
2.18
|
%
|
3,331
|
2.38
|
%
|
5,336
|
2.48
|
%
|
13,979
|
2.52
|
%
|
||||||||||||||||||||
Subordinated debt, net
|
96,966
|
5.58
|
%
|
97,839
|
5.46
|
%
|
98,748
|
5.46
|
%
|
98,642
|
5.53
|
%
|
98,531
|
5.59
|
%
|
||||||||||||||||||||
Junior subordinated debt
|
101,196
|
6.74
|
%
|
101,196
|
5.58
|
%
|
101,196
|
4.07
|
%
|
101,196
|
2.92
|
%
|
101,196
|
2.20
|
%
|
||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
6,779,489
|
1.14
|
%
|
$
|
6,541,749
|
0.57
|
%
|
$
|
6,470,031
|
0.29
|
%
|
$
|
6,746,393
|
0.23
|
%
|
$
|
6,879,084
|
0.23
|
%
|
|||||||||||||||
Demand deposits
|
3,502,489
|
3,658,965
|
3,708,131
|
3,711,049
|
3,710,124
|
||||||||||||||||||||||||||||||
Other liabilities
|
274,517
|
290,895
|
234,851
|
218,491
|
206,292
|
||||||||||||||||||||||||||||||
Stockholders' equity
|
1,190,316
|
1,164,916
|
1,201,656
|
1,190,585
|
1,241,188
|
||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
11,746,811
|
$
|
11,656,525
|
$
|
11,614,669
|
$
|
11,866,518
|
$
|
12,036,688
|
|||||||||||||||||||||||||
Interest rate spread
|
3.12
|
%
|
3.45
|
%
|
3.39
|
%
|
3.12
|
%
|
2.86
|
%
|
|||||||||||||||||||||||||
Net interest margin (FTE)1
|
3.55
|
%
|
3.68
|
%
|
3.51
|
%
|
3.21
|
%
|
2.95
|
%
|
1
|
The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
|
Non-GAAP measures
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
FTE adjustment
|
2023
|
2022 | ||||||||||||||||||
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Net interest income
|
$
|
95,066
|
$
|
99,779
|
$
|
94,478
|
$
|
87,585
|
$
|
80,348
|
||||||||||
Add: FTE adjustment
|
395
|
392
|
337
|
290
|
285
|
|||||||||||||||
Net interest income (FTE)
|
$
|
95,461
|
$
|
100,171
|
$
|
94,815
|
$
|
87,875
|
$
|
80,633
|
||||||||||
Average earning assets
|
$
|
10,909,932
|
$
|
10,801,115
|
$
|
10,727,291
|
$
|
10,983,020
|
$
|
11,089,110
|
||||||||||
Net interest margin (FTE)3
|
3.55
|
%
|
3.68
|
%
|
3.51
|
%
|
3.21
|
%
|
2.95
|
%
|
||||||||||
Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of
21%.
|
||||||||||||||||||||
Tangible equity to tangible assets
|
2023
|
2022 | ||||||||||||||||||
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Total equity
|
$
|
1,211,659
|
$
|
1,173,554
|
$
|
1,156,546
|
$
|
1,188,556
|
$
|
1,202,250
|
||||||||||
Intangible assets
|
288,159
|
288,545
|
289,083
|
289,259
|
288,832
|
|||||||||||||||
Total assets
|
$
|
11,839,730
|
$
|
11,739,296
|
$
|
11,640,742
|
$
|
11,720,459
|
$
|
12,147,833
|
||||||||||
Tangible equity to tangible assets
|
7.99
|
%
|
7.73
|
%
|
7.64
|
%
|
7.87
|
%
|
7.70
|
%
|
||||||||||
Return on average tangible common equity
|
2023
|
2022 | ||||||||||||||||||
1st Q |
4th Q
|
3rd Q
|
2nd Q
|
1st Q
|
||||||||||||||||
Net income
|
$
|
33,658
|
$
|
36,121
|
$
|
38,973
|
$
|
37,775
|
$
|
39,126
|
||||||||||
Amortization of intangible assets (net of tax)
|
402
|
404
|
408
|
409
|
477
|
|||||||||||||||
Net income, excluding intangibles amortization
|
$
|
34,060
|
$
|
36,525
|
$
|
39,381
|
$
|
38,184
|
$
|
39,603
|
||||||||||
Average stockholders' equity
|
$
|
1,190,316
|
$
|
1,164,916
|
$
|
1,201,656
|
$
|
1,190,585
|
$
|
1,241,188
|
||||||||||
Less: average goodwill and other intangibles
|
288,354
|
288,856
|
289,296
|
289,584
|
289,218
|
|||||||||||||||
Average tangible common equity
|
$
|
901,962
|
$
|
876,060
|
$
|
912,360
|
$
|
901,001
|
$
|
951,970
|
||||||||||
Return on average tangible common equity3
|
15.31
|
%
|
16.54
|
%
|
17.12
|
%
|
17.00
|
%
|
16.87
|
%
|
2
|
Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
|
3
|
Annualized.
|
4
|
Total past due loans, defined as loans 30 days or more past due and in an accrual status.
|
5
|
Securities are shown at average amortized cost.
|
6
|
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances
outstanding.
|