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, 2024



NBT BANCORP INC.
(Exact name of registrant as specified in its charter)

Delaware
000-14703
16-1268674
(State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.)

52 South Broad Street, Norwich, New York 13815
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (607) 337-2265

Not Applicable
(Former name or former address, if changed since last report)

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)


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))

Securities registered pursuant to Section 12(b) of the Act:

Title of class
Trading Symbol
Name of exchange on which registered
Common Stock, par value $0.01 per share
NBTB
The NASDAQ Stock Market LLC

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. ☐



Item 2.02
 
Results of Operations and Financial Condition

On April 22, 2024, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended March 31, 2024. That press release is furnished as Exhibit 99.1 hereto. A conference call will be held at 10:00 a.m. Eastern Time on Tuesday, April 23, 2024, to review the first quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Event Calendar page of the Company’s website at www.nbtbancorp.com.
 
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 22, 2024
     
104  
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
NBT BANCORP INC.
     
Date: April 22, 2024
By:
/s/ Scott A. Kingsley
   
Scott A. Kingsley
   
Executive Vice President and Chief Financial Officer




Exhibit 99.1

FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS

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
    
NBT BANCORP INC. ANNOUNCES FIRST QUARTER 2024 RESULTS

NORWICH, NY (April 22, 2024) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2024.
 
Net income for the three months ended March 31, 2024 was $33.8 million, or $0.71 per diluted common share, compared to $33.7 million, or $0.78 per diluted common share, for the three months ended March 31, 2023, and $30.4 million, or $0.64 per diluted common share, for the fourth quarter of 2023. Operating diluted earnings per share1, a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses, securities gains (losses) and an impairment of a minority interest equity investment, net of tax, was $0.68 for the first quarter of 2024, compared to $0.88 for the first quarter of 2023 and $0.72 for the fourth quarter of 2023.
 
CEO Comments

“NBT reported solid results for the quarter despite the ongoing challenges presented by the interest rate environment. Our resilient balance sheet is the foundation that allows our team to execute on our growth strategies across our markets. Our fee-based businesses continued to grow, providing diversified revenue streams that generated 31% of total revenues,” said NBT President and CEO John H. Watt, Jr. “NBT is poised to participate in the transformational growth that will occur in our core Upstate NY markets as the result of multiple game-changing investments in semiconductor manufacturing, including the recently announced $6.1 billion grant Micron Technology will receive under the CHIPS & Science Act that will, in part, support its plans to invest as much as $100 billion, over the next ten years, in a new complex of semiconductor chip manufacturing plants near Syracuse.”


2
First Quarter 2024 Financial Highlights
 
Net Income
Net income of $33.8 million and diluted earnings per share of $0.71
Operating net income of $32.1 million and diluted operating earnings per share of $0.681
Net Interest Income / NIM
Net interest income on a fully taxable equivalent (“FTE”) basis was $95.8 million1
Net interest margin (“NIM”) on an FTE basis was 3.14%1, down 1 basis point (“bps”) from the prior quarter
Included in FTE net interest income was $2.5 million of acquisition-related net accretion consistent with fourth quarter of 2023
Earning asset yields of 4.84% were up 5 bps from the prior quarter
Total cost of funds of 1.79% was up 7 bps from the prior quarter
Noninterest Income
Noninterest income was $43.2 million, or 31.2% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality
Period end total loans of $9.69 billion as of March 31, 2024, up $37.4 million, or 1.6% annualized, from December 31, 2023
Net charge-offs to average loans were 0.19% annualized
Nonperforming loans to total loans were 0.39%, compared to 0.39% in the prior quarter and 0.23% for the first quarter of 2023
Allowance for loan losses to total loans was 1.19%
Deposits
Deposits were $11.20 billion as of March 31, 2024, up $226.3 million, or 2.1%, from December 31, 2023
Total cost of deposits was 1.61% for the first quarter of 2024, up 10 bps from the fourth quarter
Full cycle to-date deposit beta of 30%
Composition of total deposits is diverse and granular with over 561,000 accounts with an average per account balance of $19,947
Capital
Stockholders’ equity was $1.44 billion as of March 31, 2024
Tangible book value per share2 was $22.07 at March 31, 2024
Tangible equity to assets of 7.98%1
CET1 ratio of 11.68%; Leverage ratio of 10.09%

Loans


Period end total loans were $9.69 billion at March 31, 2024, $9.65 billion at December 31, 2023 and $8.26 billion at March 31, 2023.
 
Period end total loans increased $37.4 million from December 31, 2023. Total commercial loans increased $19.0 million to $5.00 billion; and total consumer loans increased $18.3 million to $4.69 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $77.9 million, or 3.6% annualized.
 
Commercial line of credit utilization rate was 21% at March 31, 2024, compared to 20% at December 31, 2023 and 22% at March 31, 2023.

Deposits

 
Total deposits at March 31, 2024 increased $226.3 million to $11.20 billion, compared to $10.97 billion at December 31, 2023. The increase in deposits was primarily due to the inflow of seasonal municipal deposits during the quarter. The Company continued to experience incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
 
The loan to deposit ratio was 86.5% at March 31, 2024, compared to 88.0% at December 31, 2023.


3
Net Interest Income and Net Interest Margin

 
Net interest income for the first quarter of 2024 was $95.2 million, which was down $4.0 million, or 4.0%, from the fourth quarter of 2023 and up $0.1 million, or 0.1%, from the first quarter of 2023. The decrease in net interest income from the fourth quarter of 2023 resulted from the decrease in short-term interest-bearing accounts and the interest earned on those accounts and one less day in the first quarter of 2024 compared to the fourth quarter 2023.
 
The NIM on an FTE basis for the first quarter of 2024 was 3.14%, a decrease of only 1 bp from the fourth quarter of 2023, driven by an increase in the cost of interest-bearing deposits and a decrease in average balance of noninterest-bearing demand deposit accounts, partly offset by lower average balances of short-term borrowings and an increase in average earning asset yields. The NIM on an FTE basis decreased 41 bps from the first quarter of 2023 due to the increase in the cost of interest-bearing deposits, partially offset by lower average balances of short-term borrowings, higher earning asset yields and the impact of acquisition-related net accretion.
 
Earning asset yields for the three months ended March 31, 2024 increased 5 bps from the prior quarter to 4.84% and increased 58 bps from the same quarter in the prior year. Loan yields for the three months ended March 31, 2024 increased 7 bps from the prior quarter to 5.54% and increased 54 bps from the same quarter in the prior year. Average earning assets decreased $290.4 million, or 2.3%, from the fourth quarter of 2023 due to the decrease in the average balance of short-term interest-bearing accounts. Average earning assets grew $1.36 billion, or 12.5%, from the first quarter of 2023 due to the Salisbury Bancorp, Inc. (“Salisbury”) acquisition and organic loan growth.
 
Total cost of deposits, including noninterest bearing deposits, was 1.61% for the first quarter of 2024, an increase of 10 bps from the prior quarter and an increase of 114 bps from the same period in the prior year. For the month of March, the total costs of deposits was 1.64%.
 
Total cost of funds for the three months ended March 31, 2024 was 1.79%, up 7 bps from the prior quarter and up 104 bps from the first quarter of 2023. For the month of March, the total cost of funds was 1.80%.

Asset Quality and Allowance for Loan Losses

 
Net charge-offs to total average loans for the first quarter of 2024 was 19 bps compared to 22 bps in the prior quarter. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter.
 
Nonperforming assets to total assets were 0.28% at both March 31, 2024 and December 31, 2023.
 
Provision expense for the three months ended March 31, 2024 was $5.6 million, compared to $5.1 million for the fourth quarter of 2023.
 
The allowance for loan losses was $115.3 million, or 1.19% of total loans, at March 31, 2024, consistent with $114.4 million, or 1.19% of total loans at December 31, 2023.
 
The reserve for unfunded loan commitments was $4.7 million at March 31, 2024, compared to $5.1 million at December 31, 2023.

Noninterest Income

 
Total noninterest income, excluding securities gains (losses), was $43.2 million for the three months ended March 31, 2024, up $5.2 million, or 13.8%, from the fourth quarter of 2023, and $6.8 million higher, or 18.7%, from the first quarter of 2023.


4
 
Retirement plan administration fees were up $3.1 million from the prior quarter and were $2.8 million higher than the first quarter of 2023. The increase from the prior quarter, as expected, was due to certain seasonal activity-based fees in the first quarter, organic growth and positive market performance. The increase from the first quarter of 2023 included the impact from the acquisition of Retirement Direct, LLC on July 1, 2023, organic growth and market performance.
 
Wealth management fees were up $0.5 million from the prior quarter and were $1.6 million higher than the first quarter of 2023. The increase from the prior quarter was driven by organic growth and favorable market performance. The increase from the first quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
 
Insurance services were up $0.7 million from the prior quarter and were $0.5 million higher than the first quarter of 2023 due to organic growth, higher levels of policy renewals and first quarter seasonality.
 
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 an available for sale corporate debt security from a financial institution that failed. In the first quarter of 2024, the Company sold the previously written-off subordinated debt security and recognized a gain of $2.3 million ($0.04 per diluted share).

Noninterest Expense

 
Total noninterest expense was $91.8 million for the first quarter of 2024 compared to $92.8 million for the fourth quarter of 2023 and $79.3 million for the first quarter of 2023. Total noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023 and $0.6 million of acquisition expenses in the first quarter of 2023, and the $4.8 million impairment of a minority interest equity investment in the fourth quarter of 2023, increased 4.6% compared to the previous quarter and increased 16.6% from the first quarter of 2023.
 
Salaries and benefits increased 11.4% from the prior quarter driven by higher incentive compensation costs, seasonally higher payroll taxes and stock-based compensation expenses and merit pay increases which were effective in March. The 15.7% increase from the first quarter of 2023 was driven by the impact of the Salisbury acquisition and higher stock-based compensation expenses.
 
Occupancy costs increased from the prior quarter and the first quarter of 2023 driven by seasonal costs on a linked quarter basis including utilities expenses, timing of maintenance activities and additional expenses from the Salisbury acquisition.
 
Professional fees and outside services decreased from the prior quarter due to timing of initiatives and increased from the first quarter of 2023 driven by the Salisbury acquisition.
 
Amortization of intangible assets increased $1.6 million from the first quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.
 
The decrease in other expenses was $1.2 million compared to the fourth quarter 2023 due primarily to timing of expenses including travel and advertising.

Income Taxes

 
The effective tax rate was 21.7% for the first quarter of 2024 which was down from 23.5% for the fourth quarter of 2023 and 22.2% for the first quarter of 2023.

Capital

 
Tangible common equity to tangible assets1 was 7.98% at March 31, 2024. Tangible book value per share2 was $22.07 at March 31, 2024, $21.72 at December 31, 2023 and $21.52 at March 31, 2023.
 
Stockholders’ equity increased $15.7 million from December 31, 2023 driven by net income generation of $33.8 million, partially offset by dividends declared of $15.1 million and a $3.6 million increase in accumulated other comprehensive loss driven by the change in the market value of securities available for sale.
 
March 31, 2024, CET1 capital ratio of 11.68%, leverage ratio of 10.09% and total risk-based capital ratio of 14.87%.

Stock Repurchase

 
The Company purchased 1,900 shares of its common stock during the first quarter of 2024 at an average price of $33.03 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of March 31, 2024, there were 1,998,100 shares available for repurchase under this plan.


5
Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, April 23, 2024, to review the first quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.
 
Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $13.44 billion at March 31, 2024. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 154 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements
 
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, 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, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (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 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; and (20) the Company’s success at managing the risks involved in the foregoing items.


6
The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the 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.


7
NBT Bancorp Inc. and Subsidiaries
                             
Selected Financial Data
                             
(unaudited, dollars in thousands except per share data)
                             
                               
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Profitability (reported)
                             
Diluted earnings per share
 
$
0.71
   
$
0.64
   
$
0.54
   
$
0.70
   
$
0.78
 
Weighted average diluted common shares outstanding
   
47,370,145
     
47,356,899
     
45,398,937
     
43,126,498
     
43,125,986
 
Return on average assets3
   
1.02
%
   
0.89
%
   
0.76
%
   
1.02
%
   
1.16
%
Return on average equity3
   
9.52
%
   
8.79
%
   
7.48
%
   
9.91
%
   
11.47
%
Return on average tangible common equity1 3
   
13.87
%
   
13.08
%
   
10.73
%
   
13.13
%
   
15.31
%
Net interest margin1 3
   
3.14
%
   
3.15
%
   
3.21
%
   
3.27
%
   
3.55
%
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Profitability (operating)
                                       
Diluted earnings per share1
 
$
0.68
   
$
0.72
   
$
0.84
   
$
0.80
   
$
0.88
 
Return on average assets1 3
   
0.97
%
   
0.99
%
   
1.19
%
   
1.17
%
   
1.31
%
Return on average equity1 3
   
9.04
%
   
9.79
%
   
11.65
%
   
11.40
%
   
12.95
%
Return on average tangible common equity1 3
   
13.20
%
   
14.49
%
   
16.43
%
   
15.08
%
   
17.27
%
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Balance sheet data
                                       
Short-term interest-bearing accounts
 
$
156,632
   
$
31,378
   
$
459,296
   
$
31,878
   
$
68,045
 
Securities available for sale
   
1,418,471
     
1,430,858
     
1,399,032
     
1,453,926
     
1,512,008
 
Securities held to maturity
   
890,863
     
905,267
     
914,520
     
912,876
     
906,824
 
Net loans
   
9,572,777
     
9,536,313
     
9,552,774
     
8,257,724
     
8,164,328
 
Total assets
   
13,439,199
     
13,309,040
     
13,827,628
     
11,890,497
     
11,839,730
 
Total deposits
   
11,195,289
     
10,968,994
     
11,401,452
     
9,529,919
     
9,681,205
 
Total borrowings
   
518,190
     
637,387
     
740,603
     
880,518
     
703,248
 
Total liabilities
   
11,997,784
     
11,883,349
     
12,464,807
     
10,680,004
     
10,628,071
 
Stockholders’ equity
   
1,441,415
     
1,425,691
     
1,362,821
     
1,210,493
     
1,211,659
 
                                         
Capital
                                       
Equity to assets
   
10.73
%
   
10.71
%
   
9.86
%
   
10.18
%
   
10.23
%
Tangible equity ratio1
   
7.98
%
   
7.93
%
   
7.15
%
   
7.95
%
   
7.99
%
Book value per share
 
$
30.57
   
$
30.26
   
$
28.94
   
$
28.26
   
$
28.24
 
Tangible book value per share2
 
$
22.07
   
$
21.72
   
$
20.39
   
$
21.55
   
$
21.52
 
Leverage ratio
   
10.09
%
   
9.71
%
   
10.23
%
   
10.51
%
   
10.43
%
Common equity tier 1 capital ratio
   
11.68
%
   
11.57
%
   
11.31
%
   
12.29
%
   
12.28
%
Tier 1 capital ratio
   
12.61
%
   
12.50
%
   
12.23
%
   
13.35
%
   
13.34
%
Total risk-based capital ratio
   
14.87
%
   
14.75
%
   
14.45
%
   
15.50
%
   
15.53
%
Common stock price (end of period)
 
$
36.68
   
$
41.91
   
$
31.69
   
$
31.85
   
$
33.71
 


8
NBT Bancorp Inc. and Subsidiaries
                             
Asset Quality and Consolidated Loan Balances
                             
(unaudited, dollars in thousands)
                             
                               
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Asset quality
                             
Nonaccrual loans
 
$
35,189
   
$
34,213
   
$
20,736
   
$
16,931
   
$
16,284
 
90 days past due and still accruing
   
2,600
     
3,661
     
3,528
     
2,755
     
2,328
 
Total nonperforming loans
   
37,789
     
37,874
     
24,264
     
19,686
     
18,612
 
Other real estate owned
   
-
     
-
     
-
     
179
     
105
 
Total nonperforming assets
   
37,789
     
37,874
     
24,264
     
19,865
     
18,717
 
Allowance for loan losses
   
115,300
     
114,400
     
114,601
     
100,400
     
100,250
 
                                         
Asset quality ratios
                                       
Allowance for loan losses to total loans
   
1.19
%
   
1.19
%
   
1.19
%
   
1.20
%
   
1.21
%
Total nonperforming loans to total loans
   
0.39
%
   
0.39
%
   
0.25
%
   
0.24
%
   
0.23
%
Total nonperforming assets to total assets
   
0.28
%
   
0.28
%
   
0.18
%
   
0.17
%
   
0.16
%
Allowance for loan losses to total nonperforming loans
   
305.12
%
   
302.05
%
   
472.31
%
   
510.01
%
   
538.63
%
Past due loans to total loans4
   
0.33
%
   
0.32
%
   
0.49
%
   
0.45
%
   
0.30
%
Net charge-offs to average loans3
   
0.19
%
   
0.22
%
   
0.18
%
   
0.17
%
   
0.19
%
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Loan net charge-offs by line of business
                                       
Commercial
 
$
772
   
$
1,107
   
$
(344
)
 
$
92
   
$
(252
)
Residential real estate and home equity
   
(32
)
   
11
     
(75
)
   
(43
)
   
80
 
Indirect auto
   
665
     
399
     
451
     
273
     
423
 
Residential solar
   
1,211
     
1,081
     
1,253
     
581
     
656
 
Other consumer
   
2,063
     
2,729
     
2,919
     
2,553
     
2,904
 
Total loan net charge-offs
 
$
4,679
   
$
5,327
   
$
4,204
   
$
3,456
   
$
3,811
 
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Allowance for loan losses as a percentage of loans by segment
                                       
Commercial & industrial
   
0.79
%
   
0.84
%
   
0.87
%
   
0.86
%
   
0.85
%
Commercial real estate
   
0.97
%
   
0.99
%
   
1.00
%
   
0.93
%
   
0.93
%
Residential real estate
   
0.89
%
   
0.84
%
   
0.79
%
   
0.73
%
   
0.73
%
Auto
   
0.81
%
   
0.83
%
   
0.82
%
   
0.80
%
   
0.77
%
Residential solar
   
3.58
%
   
3.28
%
   
3.19
%
   
3.09
%
   
3.04
%
Other consumer
   
4.24
%
   
4.70
%
   
5.23
%
   
5.98
%
   
6.19
%
Total
   
1.19
%
   
1.19
%
   
1.19
%
   
1.20
%
   
1.21
%
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Loans by line of business
                                       
Commercial & industrial
 
$
1,353,446
   
$
1,354,248
   
$
1,424,579
   
$
1,319,093
   
$
1,278,291
 
Commercial real estate
   
3,646,739
     
3,626,910
     
3,575,595
     
2,884,264
     
2,845,631
 
Residential real estate
   
2,133,289
     
2,125,804
     
2,111,670
     
1,666,204
     
1,651,918
 
Home equity
   
328,673
     
337,214
     
340,777
     
310,897
     
308,219
 
Indirect auto
   
1,190,734
     
1,130,132
     
1,099,558
     
1,048,739
     
1,031,315
 
Residential solar
   
896,147
     
917,755
     
934,082
     
926,365
     
920,084
 
Other consumer
   
139,049
     
158,650
     
181,114
     
202,562
     
229,120
 
Total loans
 
$
9,688,077
   
$
9,650,713
   
$
9,667,375
   
$
8,358,124
   
$
8,264,578
 


9
NBT Bancorp Inc. and Subsidiaries
           
Consolidated Balance Sheets
           
(unaudited, in thousands)
           
             
   
March 31,
   
December 31,
 
 
2024
   
2023
 
Assets
           
Cash and due from banks
 
$
162,460
   
$
173,811
 
Short-term interest-bearing accounts
   
156,632
     
31,378
 
Equity securities, at fair value
   
39,470
     
37,591
 
Securities available for sale, at fair value
   
1,418,471
     
1,430,858
 
Securities held to maturity (fair value $793,319 and $814,524, respectively)
   
890,863
     
905,267
 
Federal Reserve and Federal Home Loan Bank stock
   
37,336
     
45,861
 
Loans held for sale
   
3,263
     
3,371
 
Loans
   
9,688,077
     
9,650,713
 
Less allowance for loan losses
   
115,300
     
114,400
 
Net loans
 
$
9,572,777
   
$
9,536,313
 
Premises and equipment, net
   
80,239
     
80,675
 
Goodwill
   
361,851
     
361,851
 
Intangible assets, net
   
38,968
     
40,443
 
Bank owned life insurance
   
267,476
     
265,732
 
Other assets
   
409,393
     
395,889
 
Total assets
 
$
13,439,199
   
$
13,309,040
 
                 
Liabilities and stockholders’ equity
               
Demand (noninterest bearing)
 
$
3,359,789
   
$
3,413,829
 
Savings, NOW and money market
   
6,467,364
     
6,230,456
 
Time
   
1,368,136
     
1,324,709
 
Total deposits
 
$
11,195,289
   
$
10,968,994
 
Short-term borrowings
   
267,134
     
386,651
 
Long-term debt
   
29,759
     
29,796
 
Subordinated debt, net
   
120,101
     
119,744
 
Junior subordinated debt
   
101,196
     
101,196
 
Other liabilities
   
284,305
     
276,968
 
Total liabilities
 
$
11,997,784
   
$
11,883,349
 
                 
Total stockholders’ equity
 
$
1,441,415
   
$
1,425,691
 
                 
Total liabilities and stockholders’ equity
 
$
13,439,199
   
$
13,309,040
 


10
NBT Bancorp Inc. and Subsidiaries
                             
Quarterly Consolidated Statements of Income
                             
(unaudited, in thousands except per share data)
                             
                               
   
2024
 
2023
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Interest, fee and dividend income
                             
Interest and fees on loans
 
$
133,146
   
$
132,738
   
$
122,097
   
$
106,935
   
$
100,899
 
Securities available for sale
   
7,124
     
7,208
     
7,495
     
7,493
     
7,616
 
Securities held to maturity
   
5,303
     
5,374
     
5,281
     
4,991
     
5,035
 
Other
   
1,364
     
5,594
     
2,221
     
1,170
     
642
 
Total interest, fee and dividend income
 
$
146,937
   
$
150,914
   
$
137,094
   
$
120,589
   
$
114,192
 
Interest expense
                                       
Deposits
 
$
44,339
   
$
42,753
   
$
30,758
   
$
19,986
   
$
11,144
 
Short-term borrowings
   
3,421
     
4,951
     
7,612
     
8,126
     
4,919
 
Long-term debt
   
290
     
294
     
294
     
290
     
47
 
Subordinated debt
   
1,800
     
1,795
     
1,612
     
1,335
     
1,334
 
Junior subordinated debt
   
1,913
     
1,948
     
1,923
     
1,767
     
1,682
 
Total interest expense
 
$
51,763
   
$
51,741
   
$
42,199
   
$
31,504
   
$
19,126
 
Net interest income
 
$
95,174
   
$
99,173
   
$
94,895
   
$
89,085
   
$
95,066
 
Provision for loan losses
 
$
5,579
   
$
5,126
   
$
3,883
   
$
3,606
   
$
3,909
 
Provision for loan losses - acquisition day 1 non-PCD
   
-
     
-
     
8,750
     
-
     
-
 
Total provision for loan losses
 
$
5,579
   
$
5,126
   
$
12,633
   
$
3,606
   
$
3,909
 
Net interest income after provision for loan losses
 
$
89,595
   
$
94,047
   
$
82,262
   
$
85,479
   
$
91,157
 
Noninterest income
                                       
Service charges on deposit accounts
 
$
4,117
   
$
4,165
   
$
3,979
   
$
3,733
   
$
3,548
 
Card services income
   
5,195
     
5,360
     
5,503
     
5,121
     
4,845
 
Retirement plan administration fees
   
14,287
     
11,226
     
12,798
     
11,735
     
11,462
 
Wealth management
   
9,697
     
9,152
     
9,297
     
8,227
     
8,087
 
Insurance services
   
4,388
     
3,659
     
4,361
     
3,716
     
3,931
 
Bank owned life insurance income
   
2,352
     
1,776
     
1,568
     
1,528
     
1,878
 
Net securities gains (losses)
   
2,183
     
507
     
(183
)
   
(4,641
)
   
(4,998
)
Other
   
3,173
     
2,643
     
2,913
     
2,626
     
2,656
 
Total noninterest income
 
$
45,392
   
$
38,488
   
$
40,236
   
$
32,045
   
$
31,409
 
Noninterest expense
                                       
Salaries and employee benefits
 
$
55,704
   
$
50,013
   
$
49,248
   
$
46,834
   
$
48,155
 
Technology and data services
   
9,750
     
10,174
     
9,677
     
9,305
     
9,007
 
Occupancy
   
8,098
     
7,175
     
7,090
     
6,923
     
7,220
 
Professional fees and outside services
   
4,853
     
5,115
     
4,149
     
4,159
     
4,178
 
Amortization of intangible assets
   
2,168
     
2,131
     
1,609
     
458
     
536
 
Reserve for unfunded loan commitments
   
(450
)
   
300
     
460
     
(100
)
   
(630
)
Impairment of a minority interest equity investment
   
-
     
4,750
     
-
     
-
     
-
 
Acquisition expenses
   
-
     
254
     
7,917
     
1,189
     
618
 
Other
   
11,650
     
12,839
     
10,647
     
10,026
     
10,238
 
Total noninterest expense
 
$
91,773
   
$
92,751
   
$
90,797
   
$
78,794
   
$
79,322
 
Income before income tax expense
 
$
43,214
   
$
39,784
   
$
31,701
   
$
38,730
   
$
43,244
 
Income tax expense
   
9,391
     
9,338
     
7,095
     
8,658
     
9,586
 
Net income
 
$
33,823
   
$
30,446
   
$
24,606
   
$
30,072
   
$
33,658
 
Earnings Per Share
                                       
Basic
 
$
0.72
   
$
0.65
   
$
0.54
   
$
0.70
   
$
0.78
 
Diluted
 
$
0.71
   
$
0.64
   
$
0.54
   
$
0.70
   
$
0.78
 


11
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 - 2024
Q4 - 2023
Q3 - 2023
Q2 - 2023
Q1 - 2023
Assets
                                                           
Short-term interest-bearing accounts
 
$
47,972
 
4.48
%
 
$
319,907
 
5.59
%
 
$
121,384
 
4.26
%
 
$
28,473
 
3.62
%
 
$
34,215
 
2.26
%
Securities taxable1
   
2,278,029
 
1.91
%
   
2,310,409
 
1.88
%
   
2,364,809
 
1.90
%
   
2,394,027
 
1.90
%
   
2,442,732
 
1.92
%
Securities tax-exempt 1 5
   
230,468
 
3.58
%
   
232,575
 
3.51
%
   
219,427
 
3.34
%
   
201,499
 
2.83
%
   
202,321
 
2.81
%
FRB and FHLB stock
   
42,296
 
7.89
%
   
47,994
 
8.98
%
   
53,841
 
6.76
%
   
51,454
 
7.12
%
   
41,144
 
4.45
%
Loans1 6
   
9,674,892
 
5.54
%
   
9,653,191
 
5.47
%
   
9,043,582
 
5.36
%
   
8,307,894
 
5.17
%
   
8,189,520
 
5.00
%
Total interest-earning assets
 
$
12,273,657
 
4.84
%
 
$
12,564,076
 
4.79
%
 
$
11,803,043
 
4.63
%
 
$
10,983,347
 
4.42
%
 
$
10,909,932
 
4.26
%
Other assets
   
1,055,386
         
1,052,024
         
968,220
         
835,424
         
836,879
     
Total assets
 
$
13,329,043
       
$
13,616,100
       
$
12,771,263
       
$
11,818,771
       
$
11,746,811
     
Liabilities and stockholders’ equity
                                                           
Money market deposit accounts
 
$
3,129,160
 
3.56
%
 
$
3,045,531
 
3.43
%
 
$
2,422,451
 
2.91
%
 
$
2,113,965
 
2.30
%
 
$
2,081,210
 
1.22
%
NOW deposit accounts
   
1,600,288
 
0.75
%
   
1,645,401
 
0.80
%
   
1,513,420
 
0.57
%
   
1,463,953
 
0.38
%
   
1,598,834
 
0.36
%
Savings deposits
   
1,607,659
 
0.04
%
   
1,666,915
 
0.04
%
   
1,707,094
 
0.04
%
   
1,708,874
 
0.03
%
   
1,781,465
 
0.03
%
Time deposits
   
1,352,559
 
4.00
%
   
1,343,548
 
3.81
%
   
1,178,352
 
3.60
%
   
856,305
 
2.97
%
   
639,645
 
2.10
%
Total interest-bearing deposits
 
$
7,689,666
 
2.32
%
 
$
7,701,395
 
2.20
%
 
$
6,821,317
 
1.79
%
 
$
6,143,097
 
1.30
%
 
$
6,101,154
 
0.74
%
Federal funds purchased
   
19,769
 
5.53
%
   
217
 
5.48
%
   
6,033
 
5.39
%
   
48,407
 
5.35
%
   
44,334
 
4.92
%
Repurchase agreements
   
82,419
 
1.55
%
   
82,387
 
1.59
%
   
71,516
 
1.40
%
   
55,627
 
1.08
%
   
71,340
 
0.08
%
Short-term borrowings
   
213,390
 
5.34
%
   
345,250
 
5.31
%
   
540,380
 
5.34
%
   
557,818
 
5.27
%
   
357,200
 
4.96
%
Long-term debt
   
29,772
 
3.92
%
   
29,809
 
3.91
%
   
29,800
 
3.91
%
   
29,773
 
3.91
%
   
7,299
 
2.61
%
Subordinated debt, net
   
119,873
 
6.04
%
   
119,531
 
5.96
%
   
109,160
 
5.86
%
   
97,081
 
5.52
%
   
96,966
 
5.58
%
Junior subordinated debt
   
101,196
 
7.60
%
   
101,196
 
7.64
%
   
101,196
 
7.54
%
   
101,196
 
7.00
%
   
101,196
 
6.74
%
Total interest-bearing liabilities
 
$
8,256,085
 
2.52
%
 
$
8,379,785
 
2.45
%
 
$
7,679,402
 
2.18
%
 
$
7,032,999
 
1.80
%
 
$
6,779,489
 
1.14
%
Demand deposits
   
3,356,607
         
3,535,815
         
3,498,424
         
3,316,955
         
3,502,489
     
Other liabilities
   
286,749
         
326,857
         
287,751
         
251,511
         
274,517
     
Stockholders’ equity
   
1,429,602
         
1,373,643
         
1,305,686
         
1,217,306
         
1,190,316
     
Total liabilities and stockholders’ equity
 
$
13,329,043
       
$
13,616,100
       
$
12,771,263
       
$
11,818,771
       
$
11,746,811
     
Interest rate spread
       
2.32
%
       
2.34
%
       
2.45
%
       
2.62
%
       
3.12
%
Net interest margin (FTE)1
       
3.14
%
       
3.15
%
       
3.21
%
       
3.27
%
       
3.55
%


12
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 except per share data)
                             
                               
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Operating net income
                             
Net income
 
$
33,823
   
$
30,446
   
$
24,606
   
$
30,072
   
$
33,658
 
Acquisition expenses
   
-
     
254
     
7,917
     
1,189
     
618
 
Acquisition-related provision for credit losses
   
-
     
-
     
8,750
     
-
     
-
 
Acquisition-related reserve for unfunded loan commitments
   
-
     
-
     
836
     
-
     
-
 
Impairment of a minority interest equity investment
   
-
     
4,750
     
-
     
-
     
-
 
Securities (gains) losses
   
(2,183
)
   
(507
)
   
183
     
4,641
     
4,998
 
Adjustments to net income
 
$
(2,183
)
 
$
4,497
   
$
17,686
   
$
5,830
   
$
5,616
 
Adjustments to net income (net of tax)
 
$
(1,703
)
 
$
3,435
   
$
13,730
   
$
4,525
   
$
4,341
 
Operating net income
 
$
32,120
   
$
33,881
   
$
38,336
   
$
34,597
   
$
37,999
 
Operating diluted earnings per share
 
$
0.68
   
$
0.72
   
$
0.84
   
$
0.80
   
$
0.88
 
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
FTE adjustment
                                       
Net interest income
 
$
95,174
   
$
99,173
   
$
94,895
   
$
89,085
   
$
95,066
 
Add: FTE adjustment
   
658
     
669
     
568
     
402
     
395
 
Net interest income (FTE)
 
$
95,832
   
$
99,842
   
$
95,463
   
$
89,487
   
$
95,461
 
Average earning assets
 
$
12,273,657
   
$
12,564,076
   
$
11,803,043
   
$
10,983,347
   
$
10,909,932
 
Net interest margin (FTE)3
   
3.14
%
   
3.15
%
   
3.21
%
   
3.27
%
   
3.55
%
                                         
Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Tangible equity to tangible assets
                                       
Total equity
 
$
1,441,415
   
$
1,425,691
   
$
1,362,821
   
$
1,210,493
   
$
1,211,659
 
Intangible assets
   
400,819
     
402,294
     
402,745
     
287,701
     
288,159
 
Total assets
 
$
13,439,199
   
$
13,309,040
   
$
13,827,628
   
$
11,890,497
   
$
11,839,730
 
Tangible equity to tangible assets
   
7.98
%
   
7.93
%
   
7.15
%
   
7.95
%
   
7.99
%
                                         
 
2024
2023
 
1st Q
 
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Return on average tangible common equity
                                       
Net income
 
$
33,823
   
$
30,446
   
$
24,606
   
$
30,072
   
$
33,658
 
Amortization of intangible assets (net of tax)
   
1,626
     
1,599
     
1,206
     
344
     
402
 
Net income, excluding intangibles amortization
 
$
35,449
   
$
32,045
   
$
25,812
   
$
30,416
   
$
34,060
 
                                         
Average stockholders’ equity
 
$
1,429,602
   
$
1,373,643
   
$
1,305,686
   
$
1,217,306
   
$
1,190,316
 
Less: average goodwill and other intangibles
   
401,756
     
401,978
     
350,912
     
287,974
     
288,354
 
Average tangible common equity
 
$
1,027,846
   
$
971,665
   
$
954,774
   
$
929,332
   
$
901,962
 
Return on average tangible common equity3
   
13.87
%
   
13.08
%
   
10.73
%
   
13.13
%
   
15.31
%

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.