FOR IMMEDIATE RELEASE

NBT BANCORP INC. ANNOUNCES SECOND QUARTER 2024 RESULTS AND APPROVES A 6.3% CASH DIVIDEND INCREASE

NORWICH, NY (July 22, 2024) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2024.

 

Net income for the three months ended June 30, 2024 was $32.7 million, or $0.69 per diluted common share, compared to $30.1 million, or $0.70 per diluted common share, for the three months ended June 30, 2023, and $33.8 million, or $0.71 per diluted common share, for the first quarter of 2024. Operating diluted earnings per share¹, a non-GAAP measure, which excludes acquisition expenses and securities gains (losses), net of tax, was $0.69 for the second quarter of 2024, compared to $0.80 for the second quarter of 2023 and $0.68 for the first quarter of 2024.

 

CEO Comments

“Our operating performance for the second quarter and first half of 2024 continues to reflect the strength of our balance sheet, our diversified business model, and the collaboration of our team,” said NBT President and CEO Scott A. Kingsley. “During the second quarter, we grew loans $166 million across our footprint and improved our net interest margin incrementally. Noninterest income continued to be a core strength, making up 31% of total revenues for the second quarter. We are also pleased to announce the Board of Directors approved a third quarter cash dividend of $0.34, an increase in the quarterly cash dividend of 6.3%. This is our twelfth consecutive year of annual dividend increases, demonstrating our commitment to providing consistent and favorable long-term returns to our shareholders.”

Second Quarter 2024 Financial Highlights

 

Net Income	◾  Net income of $32.7 million and diluted earnings per share of $0.69
Net Interest Income / NIM	◾  Net interest income on a fully taxable equivalent (“FTE”) basis was $97.8 million, up $2 million from the prior quarter1 ◾  Net interest margin (“NIM”) on an FTE basis was 3.18%1, up 4 basis points (“bps”) from the prior quarter ◾  Included in FTE net interest income was $2.6 million of acquisition-related net accretion, which was consistent with the first quarter of 2024 ◾  Earning asset yields of 4.92% were up 8 bps from the prior quarter ◾  Total cost of funds of 1.85% was up 6 bps from the prior quarter
Noninterest Income	◾  Noninterest income was at a record level of $43.3 million, or 30.8% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality	◾  Period end total loans of $9.85 billion as of June 30, 2024, up $203.6 million, or 4.2% annualized, from December 31, 2023 ◾  Net charge-offs to average loans was 0.15% annualized ◾  Nonperforming loans to total loans were 0.39%, consistent with the prior quarter ◾  Allowance for loan losses to total loans was 1.22%
Deposits	◾  Deposits were $11.27 billion as of June 30, 2024, up $302.5 million, or 2.8%, from December 31, 2023 ◾  Total cost of deposits was 1.68% for the second quarter of 2024, up 7 bps from the first quarter of 2024 ◾  Full cycle to-date deposit beta of 31% ◾  Composition of total deposits is diverse and granular with over 562,000 accounts with an average per account balance of $20,052
Capital	◾  Stockholders’ equity was $1.46 billion as of June 30, 2024 ◾  Tangible book value per share2 was $22.54 at June 30, 2024 ◾  Tangible equity to assets of 8.11%1 ◾  CET1 ratio of 11.70%; Leverage ratio of 10.16%

Loans

Deposits

Net Interest Income and Net Interest Margin

Asset Quality and Allowance for Loan Losses

Noninterest Income

Noninterest Expense

Income Taxes

Capital

Dividend

Stock Repurchase

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, July 23, 2024, to review the second 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 $13.50 billion at June 30, 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 https://www.nbtbank.com/Insurance.

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 rates, 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.

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

		2024								2023
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Profitability (reported)
Diluted earnings per share		$	0.69			$	0.71			$	0.64			$	0.54			$	0.70
Weighted average diluted common shares outstanding			47,382,814				47,370,145				47,356,899				45,398,937				43,126,498
Return on average assets3			0.98	%			1.02	%			0.89	%			0.76	%			1.02	%
Return on average equity3			9.12	%			9.52	%			8.79	%			7.48	%			9.91	%
Return on average tangible common equity1 3			13.23	%			13.87	%			13.08	%			10.73	%			13.13	%
Net interest margin1 3			3.18	%			3.14	%			3.15	%			3.21	%			3.27	%
		6 Months Ended June 30,
			2024				2023
Profitability (reported)
Diluted earnings per share		$	1.40			$	1.48
Weighted average diluted common shares outstanding			47,381,054				43,129,259
Return on average assets3			1.00	%			1.09	%
Return on average equity3			9.32	%			10.68	%
Return on average tangible common equity1 3			13.55	%			14.20	%
Net interest margin1 3			3.16	%			3.41	%
			2024								2023
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Profitability (operating)
Diluted earnings per share1		$	0.69			$	0.68			$	0.72			$	0.84			$	0.80
Return on average assets1 3			0.98	%			0.97	%			0.99	%			1.19	%			1.17	%
Return on average equity1 3			9.14	%			9.04	%			9.79	%			11.65	%			11.40	%
Return on average tangible common equity1 3			13.26	%			13.20	%			14.49	%			16.43	%			15.08	%
		6 Months Ended June 30,
			2024				2023
Profitability (operating)
Diluted earnings per share1		$	1.37			$	1.68
Return on average assets1 3			0.98	%			1.24	%
Return on average equity1 3			9.09	%			12.16	%
Return on average tangible common equity1 3			13.23	%			16.15	%
	2024										2023
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Balance sheet data
Short-term interest-bearing accounts		$	35,207			$	156,632			$	31,378			$	459,296			$	31,878
Securities available for sale			1,439,445				1,418,471				1,430,858				1,399,032				1,453,926
Securities held to maturity			878,909				890,863				905,267				914,520				912,876
Net loans			9,733,847				9,572,777				9,536,313				9,552,774				8,257,724
Total assets			13,501,909				13,439,199				13,309,040				13,827,628				11,890,497
Total deposits			11,271,459				11,195,289				10,968,994				11,401,452				9,529,919
Total borrowings			476,082				518,190				637,387				740,603				880,518
Total liabilities			12,039,954				11,997,784				11,883,349				12,464,807				10,680,004
Stockholders' equity			1,461,955				1,441,415				1,425,691				1,362,821				1,210,493
Capital
Equity to assets			10.83	%			10.73	%			10.71	%			9.86	%			10.18	%
Tangible equity ratio1			8.11	%			7.98	%			7.93	%			7.15	%			7.95	%
Book value per share		$	31.00			$	30.57			$	30.26			$	28.94			$	28.26
Tangible book value per share2		$	22.54			$	22.07			$	21.72			$	20.39			$	21.55
Leverage ratio			10.16	%			10.09	%			9.71	%			10.23	%			10.51	%
Common equity tier 1 capital ratio			11.70	%			11.68	%			11.57	%			11.31	%			12.29	%
Tier 1 capital ratio			12.61	%			12.61	%			12.50	%			12.23	%			13.35	%
Total risk-based capital ratio			14.88	%			14.87	%			14.75	%			14.45	%			15.50	%
Common stock price (end of period)		$	38.60			$	36.68			$	41.91			$	31.69			$	31.85

 

		2024								2023
		2nd Q				1st Q				4th Q				3rd Q				2nd Q
Interest, fee and dividend income
Interest and fees on loans		$	136,606			$	133,146			$	132,738			$	122,097			$	106,935
Securities available for sale			7,562				7,124				7,208				7,495				7,493
Securities held to maturity			5,190				5,303				5,374				5,281				4,991
Other			1,408				1,364				5,594				2,221				1,170
Total interest, fee and dividend income		$	150,766			$	146,937			$	150,914			$	137,094			$	120,589
Interest expense
Deposits		$	46,688			$	44,339			$	42,753			$	30,758			$	19,986
Short-term borrowings			2,899				3,421				4,951				7,612				8,126
Long-term debt			291				290				294				294				290
Subordinated debt			1,806				1,800				1,795				1,612				1,335
Junior subordinated debt			1,908				1,913				1,948				1,923				1,767
Total interest expense		$	53,592			$	51,763			$	51,741			$	42,199			$	31,504
Net interest income		$	97,174			$	95,174			$	99,173			$	94,895			$	89,085
Provision for loan losses		$	8,899			$	5,579			$	5,126			$	3,883			$	3,606
Provision for loan losses - acquisition day 1 non-PCD			-				-				-				8,750				-
Total provision for loan losses		$	8,899			$	5,579			$	5,126			$	12,633			$	3,606
Net interest income after provision for loan losses		$	88,275			$	89,595			$	94,047			$	82,262			$	85,479
Noninterest income
Service charges on deposit accounts		$	4,219			$	4,117			$	4,165			$	3,979			$	3,733
Card services income			5,587				5,195				5,360				5,503				5,121
Retirement plan administration fees			14,798				14,287				11,226				12,798				11,735
Wealth management			10,173				9,697				9,152				9,297				8,227
Insurance services			3,848				4,388				3,659				4,361				3,716
Bank owned life insurance income			1,834				2,352				1,776				1,568				1,528
Net securities (losses) gains			(92	)			2,183				507				(183	)			(4,641	)
Other			2,865				3,173				2,643				2,913				2,626
Total noninterest income		$	43,232			$	45,392			$	38,488			$	40,236			$	32,045
Noninterest expense
Salaries and employee benefits		$	55,393			$	55,704			$	50,013			$	49,248			$	46,834
Technology and data services			9,249				9,750				10,174				9,677				9,305
Occupancy			7,671				8,098				7,175				7,090				6,923
Professional fees and outside services			4,565				4,853				5,115				4,149				4,159
Amortization of intangible assets			2,133				2,168				2,131				1,609				458
Reserve for unfunded loan commitments			(380	)			(450	)			300				460				(100	)
Impairment of a minority interest equity investment			-				-				4,750				-				-
Acquisition expenses			-				-				254				7,917				1,189
Other			10,957				11,650				12,839				10,647				10,026
Total noninterest expense		$	89,588			$	91,773			$	92,751			$	90,797			$	78,794
Income before income tax expense		$	41,919			$	43,214			$	39,784			$	31,701			$	38,730
Income tax expense			9,203				9,391				9,338				7,095				8,658
Net income		$	32,716			$	33,823			$	30,446			$	24,606			$	30,072
Earnings Per Share
Basic		$	0.69			$	0.72			$	0.65			$	0.54			$	0.70
Diluted		$	0.69			$	0.71			$	0.64			$	0.54			$	0.70