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
- Period end total loans were $9.85
billion at June 30, 2024, $9.69 billion at March 31, 2024 and $9.65
billion at December 31, 2023.
- Period end total loans increased
$203.6 million from December 31, 2023. Total commercial loans
increased $201.0 million to $5.18 billion; and total consumer loans
increased $2.6 million to $4.67 billion. Excluding the other
consumer and residential solar portfolios that are in a planned
run-off status, period end loans increased $294.9 million, or 6.9%
annualized.
- Commercial line of credit
utilization rate was 23% at June 30, 2024, compared to 21% at March
31, 2024 and 23% at June 30, 2023.
Deposits
- Total deposits at June 30, 2024
increased $302.5 million to $11.27 billion, compared to $10.97
billion at December 31, 2023. The increase in deposits was
primarily due to higher consumer deposit balances and accounts and
the inflow of seasonal municipal deposits. The Company continued to
experience some 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 87.4%
at June 30, 2024, compared to 88.0% at December 31, 2023.
Net Interest Income and Net Interest
Margin
- Net interest income for the second
quarter of 2024 was $97.2 million, which was up $2.0 million, or
2.1%, from the first quarter of 2024 and up $8.1 million, or 9.1%,
from the second quarter of 2023. The increase in net interest
income from the first quarter of 2024 resulted primarily from the
increase in average loans and the interest earned on those
balances, partially offset by the increase in the cost of
deposits.
- The NIM on an FTE basis for the
second quarter of 2024 was 3.18%, an increase of 4 bps from the
first quarter of 2024, driven by an increase in average earning
asset yields and lower average balances of short-term borrowings
partly offset by an increase in the cost of interest-bearing
deposits and a decrease in the average balance of
noninterest-bearing demand deposit accounts. The NIM on an FTE
basis decreased 9 bps from the second 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 June 30, 2024 increased 8 bps from the prior quarter
to 4.92% and increased 50 bps from the same quarter in the prior
year. Loan yields for the three months ended June 30, 2024
increased 9 bps from the prior quarter to 5.63% and increased 46
bps from the same quarter in the prior year. Average earning assets
increased $94.3 million, or 0.8%, from the first quarter of 2024
due to organic loan growth. Average earning assets grew $1.38
billion, or 12.6%, from the second quarter of 2023 due to organic
loan growth and the Salisbury Bancorp, Inc. (“Salisbury”)
acquisition, which was completed in August 2023.
- Total cost of deposits, including
noninterest bearing deposits, was 1.68% for the second quarter of
2024, an increase of 7 bps from the prior quarter and an increase
of 83 bps from the same period in the prior year. For the month of
June, the total cost of deposits was 1.70%.
- Total cost of funds for the three
months ended June 30, 2024 was 1.85%, up 6 bps from the prior
quarter and up 63 bps from the second quarter of 2023. For the
month of June, the total cost of funds was 1.85%.
Asset Quality and Allowance for Loan
Losses
- Net charge-offs to total average
loans for the second quarter of 2024 was 15 bps compared to 19 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% for each of the last three quarter-ends.
- Provision expense for the three
months ended June 30, 2024 was $8.9 million, compared to $5.6
million for the first quarter of 2024. The increase in provision
expense from the prior quarter was primarily due to providing for
the second quarter’s loan growth, changes in model assumptions,
including the extension of the expected duration of the portfolio,
and a specific reserve related to a commercial relationship placed
on nonaccrual in the fourth quarter of 2023.
- The allowance for loan losses was
$120.5 million, or 1.22% of total loans, at June 30, 2024, compared
to $115.3 million, or 1.19% of total loans, at March 31, 2024 and
$114.4 million, or 1.19% of total loans, at December 31, 2023.
- The reserve for unfunded loan
commitments was $4.3 million at June 30, 2024, compared to $4.7
million at March 31, 2024 and $5.1 million at December 31,
2023.
Noninterest Income
- Total noninterest income, excluding
securities gains (losses), was $43.3 million for the three months
ended June 30, 2024, up $0.1 million, or 0.3%, from the first
quarter of 2024, and up $6.6 million, or 18.1%, from the second
quarter of 2023.
- Retirement plan administration fees
were up $0.5 million from the prior quarter and were up $3.1
million from the second quarter of 2023. The increase from the
prior quarter was due to organic growth, positive market
performance and higher activity based fees. The increase from the
second quarter of 2023 included the impact of the acquisition of
Retirement Direct, LLC on July 1, 2023, organic growth and higher
market levels.
- Wealth management fees were up $0.5
million from the prior quarter and were up $1.9 million from the
second quarter of 2023. The increase from the prior quarter was
driven by organic growth and favorable market performance. The
increase from the second quarter of 2023 was driven by the addition
of Salisbury revenues, organic growth and market performance.
- Insurance revenues decreased $0.5
million from the seasonally high first quarter of 2024 and
increased 7.7% from the prior year due to solid organic
growth.
Noninterest Expense
- Total noninterest expense was $89.6
million for the second quarter of 2024, compared to $91.8 million
for the first quarter of 2024 and $78.8 million for the second
quarter of 2023. Total noninterest expense, excluding $1.2 million
of acquisition expenses in the second quarter of 2023, decreased
2.4% compared to the previous quarter and increased 15.4% from the
second quarter of 2023.
- Salaries and benefits decreased
0.6% from the prior quarter driven by seasonally higher payroll
taxes and stock-based compensation expenses in the first quarter of
2024. These decreases were partially offset by a full quarter of
merit pay increases, which were effective in March, and higher
medical costs. The 18.3% increase from the second quarter of 2023
was driven by the impact of the Salisbury acquisition, merit pay
increases, higher medical and other benefit costs.
- Technology and data services
decreased from the prior quarter primarily due to cost savings from
various efficiency initiatives.
- Occupancy costs decreased from the
prior quarter due to lower seasonal costs, including utilities, and
increased from the second quarter of 2023 driven by additional
expenses from the Salisbury acquisition.
- Amortization of intangible assets
were consistent with the first quarter and increased $1.7 million
from the second quarter of 2023 primarily due to the amortization
of intangible assets related to the Salisbury acquisition.
Income Taxes
- The effective tax rate was 22.0%
for the second quarter of 2024 which was up from 21.7% for the
first quarter of 2024 and down from 22.4% for the second quarter of
2023.
Capital
- Tangible common equity to tangible
assets1 was 8.11% at June 30, 2024. Tangible book value per share2
was $22.54 at June 30, 2024, $22.07 at March 31, 2024 and $21.55 at
June 30, 2023.
- Stockholders’ equity increased
$36.3 million from December 31, 2023 driven by net income
generation of $66.5 million, partially offset by dividends declared
of $30.2 million and a $2.0 million increase in accumulated other
comprehensive loss driven by the change in the fair value of
securities available for sale.
- June 30, 2024, CET1 capital ratio
of 11.70%, leverage ratio of 10.16% and total risk-based capital
ratio of 14.88%.
Dividend
- The Board of Directors approved a
third-quarter cash dividend of $0.34 per share at a meeting held
earlier today. The dividend represents a $0.02 per quarter, or
6.3%, increase over the dividend paid in the third quarter of 2023.
This is the Company’s twelfth consecutive year of annual dividend
increases. The dividend will be paid on September 13, 2024 to
stockholders of record as of August 30, 2024.
Stock Repurchase
- The Company purchased 5,700 shares
of its common stock during the second quarter of 2024 at an average
price of $33.02 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 June 30, 2024, there were
1,992,400 shares available for repurchase under this plan.
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
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.
Contact: |
|
Scott A.
Kingsley, President and CEO |
|
|
Annette L. Burns, Executive Vice President and CFO |
|
|
NBT Bancorp Inc. |
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|
52 South Broad Street |
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|
Norwich, NY 13815 |
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|
607-337-6589 |
NBT
Bancorp Inc. and Subsidiaries |
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Selected Financial Data |
|
|
|
|
|
|
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
|
Asset Quality and Consolidated Loan Balances |
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
Asset quality |
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
34,755 |
|
$ |
35,189 |
|
$ |
34,213 |
|
$ |
20,736 |
|
$ |
16,931 |
|
|
|
90 days past
due and still accruing |
|
3,333 |
|
|
2,600 |
|
|
3,661 |
|
|
3,528 |
|
|
2,755 |
|
|
|
Total
nonperforming loans |
|
38,088 |
|
|
37,789 |
|
|
37,874 |
|
|
24,264 |
|
|
19,686 |
|
|
|
Other real
estate owned |
|
74 |
|
|
- |
|
|
- |
|
|
- |
|
|
179 |
|
|
|
Total
nonperforming assets |
|
38,162 |
|
|
37,789 |
|
|
37,874 |
|
|
24,264 |
|
|
19,865 |
|
|
|
Allowance
for loan losses |
|
120,500 |
|
|
115,300 |
|
|
114,400 |
|
|
114,601 |
|
|
100,400 |
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios |
|
|
|
|
|
|
|
Allowance
for loan losses to total loans |
|
1.22 |
% |
|
1.19 |
% |
|
1.19 |
% |
|
1.19 |
% |
|
1.20 |
% |
|
|
Total
nonperforming loans to total loans |
|
0.39 |
% |
|
0.39 |
% |
|
0.39 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
|
Total
nonperforming assets to total assets |
|
0.28 |
% |
|
0.28 |
% |
|
0.28 |
% |
|
0.18 |
% |
|
0.17 |
% |
|
|
Allowance
for loan losses to total nonperforming loans |
|
316.37 |
% |
|
305.12 |
% |
|
302.05 |
% |
|
472.31 |
% |
|
510.01 |
% |
|
|
Past due
loans to total loans4 |
|
0.30 |
% |
|
0.33 |
% |
|
0.32 |
% |
|
0.49 |
% |
|
0.45 |
% |
|
|
Net charge-offs to average loans3 |
|
0.15 |
% |
|
0.19 |
% |
|
0.22 |
% |
|
0.18 |
% |
|
0.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
Loan
net charge-offs by line of business |
|
|
|
|
|
|
|
Commercial |
$ |
(8 |
) |
$ |
772 |
|
$ |
1,107 |
|
$ |
(344 |
) |
$ |
92 |
|
|
|
Residential
real estate and home equity |
|
(76 |
) |
|
(32 |
) |
|
11 |
|
|
(75 |
) |
|
(43 |
) |
|
|
Indirect
auto |
|
747 |
|
|
665 |
|
|
399 |
|
|
451 |
|
|
273 |
|
|
|
Residential
solar |
|
1,610 |
|
|
1,211 |
|
|
1,081 |
|
|
1,253 |
|
|
581 |
|
|
|
Other
consumer |
|
1,426 |
|
|
2,063 |
|
|
2,729 |
|
|
2,919 |
|
|
2,553 |
|
|
|
Total loan net charge-offs |
$ |
3,699 |
|
$ |
4,679 |
|
$ |
5,327 |
|
$ |
4,204 |
|
$ |
3,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
Allowance for loan losses as a percentage of loans by
segment |
|
|
|
|
|
|
Commercial
& industrial |
|
0.76 |
% |
|
0.79 |
% |
|
0.84 |
% |
|
0.87 |
% |
|
0.86 |
% |
|
|
Commercial
real estate |
|
1.00 |
% |
|
0.97 |
% |
|
0.99 |
% |
|
1.00 |
% |
|
0.93 |
% |
|
|
Residential
real estate |
|
0.98 |
% |
|
0.89 |
% |
|
0.84 |
% |
|
0.79 |
% |
|
0.73 |
% |
|
|
Auto |
|
0.85 |
% |
|
0.81 |
% |
|
0.83 |
% |
|
0.82 |
% |
|
0.80 |
% |
|
|
Residential
solar |
|
3.76 |
% |
|
3.58 |
% |
|
3.28 |
% |
|
3.19 |
% |
|
3.09 |
% |
|
|
Other
consumer |
|
4.09 |
% |
|
4.24 |
% |
|
4.70 |
% |
|
5.23 |
% |
|
5.98 |
% |
|
|
Total |
|
1.22 |
% |
|
1.19 |
% |
|
1.19 |
% |
|
1.19 |
% |
|
1.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
Loans by line of business |
|
|
|
|
|
|
|
Commercial
& industrial |
$ |
1,397,935 |
|
$ |
1,353,446 |
|
$ |
1,354,248 |
|
$ |
1,424,579 |
|
$ |
1,319,093 |
|
|
|
Commercial
real estate |
|
3,784,214 |
|
|
3,646,739 |
|
|
3,626,910 |
|
|
3,575,595 |
|
|
2,884,264 |
|
|
|
Residential
real estate |
|
2,134,875 |
|
|
2,133,289 |
|
|
2,125,804 |
|
|
2,111,670 |
|
|
1,666,204 |
|
|
|
Home
equity |
|
326,556 |
|
|
328,673 |
|
|
337,214 |
|
|
340,777 |
|
|
310,897 |
|
|
|
Indirect
auto |
|
1,225,786 |
|
|
1,190,734 |
|
|
1,130,132 |
|
|
1,099,558 |
|
|
1,048,739 |
|
|
|
Residential
solar |
|
861,883 |
|
|
896,147 |
|
|
917,755 |
|
|
934,082 |
|
|
926,365 |
|
|
|
Other
consumer |
|
123,098 |
|
|
139,049 |
|
|
158,650 |
|
|
181,114 |
|
|
202,562 |
|
|
|
Total loans |
$ |
9,854,347 |
|
$ |
9,688,077 |
|
$ |
9,650,713 |
|
$ |
9,667,375 |
|
$ |
8,358,124 |
|
|
|
|
|
|
|
|
|
|
|
NBT
Bancorp Inc. and Subsidiaries |
|
|
|
Consolidated Balance Sheets |
|
|
|
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
June 30, |
December 31, |
|
|
|
2024 |
|
2023 |
|
Assets |
|
|
|
Cash and due
from banks |
$ |
172,313 |
$ |
173,811 |
|
Short-term
interest-bearing accounts |
|
35,207 |
|
31,378 |
|
Equity
securities, at fair value |
|
40,087 |
|
37,591 |
|
Securities
available for sale, at fair value |
|
1,439,445 |
|
1,430,858 |
|
Securities
held to maturity (fair value $780,490 and $814,524,
respectively) |
|
878,909 |
|
905,267 |
|
Federal
Reserve and Federal Home Loan Bank stock |
|
38,314 |
|
45,861 |
|
Loans held
for sale |
|
3,183 |
|
3,371 |
|
Loans |
|
9,854,347 |
|
9,650,713 |
|
Less allowance for loan losses |
|
120,500 |
|
114,400 |
|
Net loans |
$ |
9,733,847 |
$ |
9,536,313 |
|
Premises and
equipment, net |
|
78,713 |
|
80,675 |
|
Goodwill |
|
361,851 |
|
361,851 |
|
Intangible
assets, net |
|
36,835 |
|
40,443 |
|
Bank owned
life insurance |
|
269,310 |
|
265,732 |
|
Other assets |
|
413,895 |
|
395,889 |
|
Total assets |
$ |
13,501,909 |
$ |
13,309,040 |
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Demand
(noninterest bearing) |
$ |
3,333,828 |
$ |
3,413,829 |
|
Savings, NOW
and money market |
|
6,532,834 |
|
6,230,456 |
|
Time |
|
1,404,797 |
|
1,324,709 |
|
Total deposits |
$ |
11,271,459 |
$ |
10,968,994 |
|
Short-term
borrowings |
|
224,703 |
|
386,651 |
|
Long-term
debt |
|
29,721 |
|
29,796 |
|
Subordinated
debt, net |
|
120,462 |
|
119,744 |
|
Junior
subordinated debt |
|
101,196 |
|
101,196 |
|
Other liabilities |
|
292,413 |
|
276,968 |
|
Total liabilities |
$ |
12,039,954 |
$ |
11,883,349 |
|
|
|
|
|
Total stockholders' equity |
$ |
1,461,955 |
$ |
1,425,691 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
13,501,909 |
$ |
13,309,040 |
|
|
|
|
|
NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
(unaudited, in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
|
June 30, |
June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Interest, fee and dividend income |
|
|
|
|
|
Interest and
fees on loans |
$ |
136,606 |
|
$ |
106,935 |
|
$ |
269,752 |
|
$ |
207,834 |
|
|
Securities
available for sale |
|
7,562 |
|
|
7,493 |
|
|
14,686 |
|
|
15,109 |
|
|
Securities
held to maturity |
|
5,190 |
|
|
4,991 |
|
|
10,493 |
|
|
10,026 |
|
|
Other |
|
1,408 |
|
|
1,170 |
|
|
2,772 |
|
|
1,812 |
|
|
Total interest, fee and dividend income |
$ |
150,766 |
|
$ |
120,589 |
|
$ |
297,703 |
|
$ |
234,781 |
|
|
Interest expense |
|
|
|
|
|
Deposits |
$ |
46,688 |
|
$ |
19,986 |
|
$ |
91,027 |
|
$ |
31,130 |
|
|
Short-term
borrowings |
|
2,899 |
|
|
8,126 |
|
|
6,320 |
|
|
13,045 |
|
|
Long-term
debt |
|
291 |
|
|
290 |
|
|
581 |
|
|
337 |
|
|
Subordinated
debt |
|
1,806 |
|
|
1,335 |
|
|
3,606 |
|
|
2,669 |
|
|
Junior
subordinated debt |
|
1,908 |
|
|
1,767 |
|
|
3,821 |
|
|
3,449 |
|
|
Total interest expense |
$ |
53,592 |
|
$ |
31,504 |
|
$ |
105,355 |
|
$ |
50,630 |
|
|
Net interest
income |
$ |
97,174 |
|
$ |
89,085 |
|
$ |
192,348 |
|
$ |
184,151 |
|
|
Provision
for loan losses |
|
8,899 |
|
|
3,606 |
|
|
14,478 |
|
|
7,515 |
|
|
Net interest income after provision for loan
losses |
$ |
88,275 |
|
$ |
85,479 |
|
$ |
177,870 |
|
$ |
176,636 |
|
|
Noninterest income |
|
|
|
|
|
Service
charges on deposit accounts |
$ |
4,219 |
|
$ |
3,733 |
|
$ |
8,336 |
|
$ |
7,281 |
|
|
Card
services income |
|
5,587 |
|
|
5,121 |
|
|
10,782 |
|
|
9,966 |
|
|
Retirement
plan administration fees |
|
14,798 |
|
|
11,735 |
|
|
29,085 |
|
|
23,197 |
|
|
Wealth
management |
|
10,173 |
|
|
8,227 |
|
|
19,870 |
|
|
16,314 |
|
|
Insurance
services |
|
3,848 |
|
|
3,716 |
|
|
8,236 |
|
|
7,647 |
|
|
Bank owned
life insurance income |
|
1,834 |
|
|
1,528 |
|
|
4,186 |
|
|
3,406 |
|
|
Net
securities (losses) gains |
|
(92 |
) |
|
(4,641 |
) |
|
2,091 |
|
|
(9,639 |
) |
|
Other |
|
2,865 |
|
|
2,626 |
|
|
6,038 |
|
|
5,282 |
|
|
Total noninterest income |
$ |
43,232 |
|
$ |
32,045 |
|
$ |
88,624 |
|
$ |
63,454 |
|
|
Noninterest expense |
|
|
|
|
|
Salaries and
employee benefits |
$ |
55,393 |
|
$ |
46,834 |
|
$ |
111,097 |
|
$ |
94,989 |
|
|
Technology
and data services |
|
9,249 |
|
|
9,305 |
|
|
18,999 |
|
|
18,312 |
|
|
Occupancy |
|
7,671 |
|
|
6,923 |
|
|
15,769 |
|
|
14,143 |
|
|
Professional
fees and outside services |
|
4,565 |
|
|
4,159 |
|
|
9,418 |
|
|
8,337 |
|
|
Amortization
of intangible assets |
|
2,133 |
|
|
458 |
|
|
4,301 |
|
|
994 |
|
|
Reserve for
unfunded loan commitments |
|
(380 |
) |
|
(100 |
) |
|
(830 |
) |
|
(730 |
) |
|
Acquisition
expenses |
|
- |
|
|
1,189 |
|
|
- |
|
|
1,807 |
|
|
Other |
|
10,957 |
|
|
10,026 |
|
|
22,607 |
|
|
20,264 |
|
|
Total noninterest expense |
$ |
89,588 |
|
$ |
78,794 |
|
$ |
181,361 |
|
$ |
158,116 |
|
|
Income
before income tax expense |
$ |
41,919 |
|
$ |
38,730 |
|
$ |
85,133 |
|
$ |
81,974 |
|
|
Income tax expense |
|
9,203 |
|
|
8,658 |
|
|
18,594 |
|
|
18,244 |
|
|
Net income |
$ |
32,716 |
|
$ |
30,072 |
|
$ |
66,539 |
|
$ |
63,730 |
|
|
Earnings Per Share |
|
|
|
|
|
Basic |
$ |
0.69 |
|
$ |
0.70 |
|
$ |
1.41 |
|
$ |
1.49 |
|
|
Diluted |
$ |
0.69 |
|
$ |
0.70 |
|
$ |
1.40 |
|
$ |
1.48 |
|
|
|
|
|
|
|
|
NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
Quarterly Consolidated Statements of Income |
|
|
|
|
|
(unaudited, in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 |
|
|
|
Q2 - 2024 |
Q1 - 2024 |
Q4 - 2023 |
Q3 - 2023 |
Q2 - 2023 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
interest-bearing accounts |
|
$ |
48,861 |
5.48 |
% |
$ |
47,972 |
4.48 |
% |
$ |
319,907 |
5.59 |
% |
$ |
121,384 |
4.26 |
% |
$ |
28,473 |
3.62 |
% |
|
Securities
taxable1 |
|
|
2,280,767 |
1.97 |
% |
|
2,278,029 |
1.91 |
% |
|
2,310,409 |
1.88 |
% |
|
2,364,809 |
1.90 |
% |
|
2,394,027 |
1.90 |
% |
|
Securities
tax-exempt 1 5 |
|
|
226,032 |
3.56 |
% |
|
230,468 |
3.58 |
% |
|
232,575 |
3.51 |
% |
|
219,427 |
3.34 |
% |
|
201,499 |
2.83 |
% |
|
FRB and FHLB
stock |
|
|
40,283 |
7.41 |
% |
|
42,296 |
7.89 |
% |
|
47,994 |
8.98 |
% |
|
53,841 |
6.76 |
% |
|
51,454 |
7.12 |
% |
|
Loans1 6 |
|
|
9,772,014 |
5.63 |
% |
|
9,674,892 |
5.54 |
% |
|
9,653,191 |
5.47 |
% |
|
9,043,582 |
5.36 |
% |
|
8,307,894 |
5.17 |
% |
|
Total interest-earning assets |
|
$ |
12,367,957 |
4.92 |
% |
$ |
12,273,657 |
4.84 |
% |
$ |
12,564,076 |
4.79 |
% |
$ |
11,803,043 |
4.63 |
% |
$ |
10,983,347 |
4.42 |
% |
|
Other assets |
|
|
1,064,487 |
|
|
1,055,386 |
|
|
1,052,024 |
|
|
968,220 |
|
|
835,424 |
|
|
Total assets |
|
$ |
13,432,444 |
|
$ |
13,329,043 |
|
$ |
13,616,100 |
|
$ |
12,771,263 |
|
$ |
11,818,771 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Money market
deposit accounts |
|
$ |
3,254,252 |
3.65 |
% |
$ |
3,129,160 |
3.56 |
% |
$ |
3,045,531 |
3.43 |
% |
$ |
2,422,451 |
2.91 |
% |
$ |
2,113,965 |
2.30 |
% |
|
NOW deposit
accounts |
|
|
1,603,695 |
0.78 |
% |
|
1,600,288 |
0.75 |
% |
|
1,645,401 |
0.80 |
% |
|
1,513,420 |
0.57 |
% |
|
1,463,953 |
0.38 |
% |
|
Savings
deposits |
|
|
1,586,753 |
0.05 |
% |
|
1,607,659 |
0.04 |
% |
|
1,666,915 |
0.04 |
% |
|
1,707,094 |
0.04 |
% |
|
1,708,874 |
0.03 |
% |
|
Time deposits |
|
|
1,391,062 |
4.00 |
% |
|
1,352,559 |
4.00 |
% |
|
1,343,548 |
3.81 |
% |
|
1,178,352 |
3.60 |
% |
|
856,305 |
2.97 |
% |
|
Total interest-bearing deposits |
|
$ |
7,835,762 |
2.40 |
% |
$ |
7,689,666 |
2.32 |
% |
$ |
7,701,395 |
2.20 |
% |
$ |
6,821,317 |
1.79 |
% |
$ |
6,143,097 |
1.30 |
% |
|
Federal
funds purchased |
|
|
29,945 |
5.56 |
% |
|
19,769 |
5.53 |
% |
|
217 |
5.48 |
% |
|
6,033 |
5.39 |
% |
|
48,407 |
5.35 |
% |
|
Repurchase
agreements |
|
|
86,405 |
1.55 |
% |
|
82,419 |
1.55 |
% |
|
82,387 |
1.59 |
% |
|
71,516 |
1.40 |
% |
|
55,627 |
1.08 |
% |
|
Short-term
borrowings |
|
|
155,159 |
5.58 |
% |
|
213,390 |
5.34 |
% |
|
345,250 |
5.31 |
% |
|
540,380 |
5.34 |
% |
|
557,818 |
5.27 |
% |
|
Long-term
debt |
|
|
29,734 |
3.94 |
% |
|
29,772 |
3.92 |
% |
|
29,809 |
3.91 |
% |
|
29,800 |
3.91 |
% |
|
29,773 |
3.91 |
% |
|
Subordinated
debt, net |
|
|
120,239 |
6.04 |
% |
|
119,873 |
6.04 |
% |
|
119,531 |
5.96 |
% |
|
109,160 |
5.86 |
% |
|
97,081 |
5.52 |
% |
|
Junior subordinated debt |
|
|
101,196 |
7.58 |
% |
|
101,196 |
7.60 |
% |
|
101,196 |
7.64 |
% |
|
101,196 |
7.54 |
% |
|
101,196 |
7.00 |
% |
|
Total interest-bearing liabilities |
|
$ |
8,358,440 |
2.58 |
% |
$ |
8,256,085 |
2.52 |
% |
$ |
8,379,785 |
2.45 |
% |
$ |
7,679,402 |
2.18 |
% |
$ |
7,032,999 |
1.80 |
% |
|
Demand
deposits |
|
|
3,323,906 |
|
|
3,356,607 |
|
|
3,535,815 |
|
|
3,498,424 |
|
|
3,316,955 |
|
|
Other
liabilities |
|
|
306,747 |
|
|
286,749 |
|
|
326,857 |
|
|
287,751 |
|
|
251,511 |
|
|
Stockholders' equity |
|
|
1,443,351 |
|
|
1,429,602 |
|
|
1,373,643 |
|
|
1,305,686 |
|
|
1,217,306 |
|
|
Total liabilities and stockholders' equity |
|
$ |
13,432,444 |
|
$ |
13,329,043 |
|
$ |
13,616,100 |
|
$ |
12,771,263 |
|
$ |
11,818,771 |
|
|
Interest
rate spread |
|
|
2.34 |
% |
|
2.32 |
% |
|
2.34 |
% |
|
2.45 |
% |
|
2.62 |
% |
|
Net interest
margin (FTE)1 |
|
|
3.18 |
% |
|
3.14 |
% |
|
3.15 |
% |
|
3.21 |
% |
|
3.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBT
Bancorp Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|
Average Year-to-Date Balance Sheets |
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
Yield/ |
Average |
|
Yield/ |
|
|
|
|
Balance |
Interest |
Rates |
Balance |
Interest |
Rates |
|
Six
Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Short-term
interest-bearing accounts |
|
$ |
48,416 |
$ |
1,201 |
4.99 |
% |
$ |
31,328 |
$ |
447 |
2.88 |
% |
|
|
Securities
taxable1 |
|
|
2,279,399 |
|
21,977 |
1.94 |
% |
|
2,418,245 |
|
22,902 |
1.91 |
% |
|
|
Securities
tax-exempt 1 5 |
|
|
228,250 |
|
4,053 |
3.57 |
% |
|
201,908 |
|
2,826 |
2.82 |
% |
|
|
FRB and FHLB
stock |
|
|
41,289 |
|
1,571 |
7.65 |
% |
|
46,327 |
|
1,365 |
5.94 |
% |
|
|
Loans1 6 |
|
|
9,723,453 |
|
270,217 |
5.59 |
% |
|
8,249,034 |
|
208,038 |
5.09 |
% |
|
|
Total interest-earning assets |
|
$ |
12,320,807 |
$ |
299,019 |
4.88 |
% |
$ |
10,946,842 |
$ |
235,578 |
4.34 |
% |
|
|
Other assets |
|
|
1,059,937 |
|
|
|
836,148 |
|
|
|
|
Total assets |
|
$ |
13,380,744 |
|
|
$ |
11,782,990 |
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
Money market
deposit accounts |
|
$ |
3,191,706 |
$ |
57,278 |
3.61 |
% |
$ |
2,097,678 |
$ |
18,368 |
1.77 |
% |
|
|
NOW deposit
accounts |
|
|
1,601,992 |
|
6,120 |
0.77 |
% |
|
1,531,021 |
|
2,824 |
0.37 |
% |
|
|
Savings
deposits |
|
|
1,597,206 |
|
352 |
0.04 |
% |
|
1,744,969 |
|
286 |
0.03 |
% |
|
|
Time deposits |
|
|
1,371,810 |
|
27,277 |
4.00 |
% |
|
748,573 |
|
9,652 |
2.60 |
% |
|
|
Total interest-bearing deposits |
|
$ |
7,762,714 |
$ |
91,027 |
2.36 |
% |
$ |
6,122,241 |
$ |
31,130 |
1.03 |
% |
|
|
Federal
funds purchased |
|
|
24,857 |
|
686 |
5.55 |
% |
|
46,381 |
|
1,184 |
5.15 |
% |
|
|
Repurchase
agreements |
|
|
84,412 |
|
649 |
1.55 |
% |
|
63,440 |
|
164 |
0.52 |
% |
|
|
Short-term
borrowings |
|
|
184,275 |
|
4,985 |
5.44 |
% |
|
458,064 |
|
11,697 |
5.15 |
% |
|
|
Long-term
debt |
|
|
29,753 |
|
581 |
3.93 |
% |
|
18,598 |
|
337 |
3.65 |
% |
|
|
Subordinated
debt, net |
|
|
120,056 |
|
3,606 |
6.04 |
% |
|
97,024 |
|
2,669 |
5.55 |
% |
|
|
Junior subordinated debt |
|
|
101,196 |
|
3,821 |
7.59 |
% |
|
101,196 |
|
3,449 |
6.87 |
% |
|
|
Total interest-bearing liabilities |
|
$ |
8,307,263 |
$ |
105,355 |
2.55 |
% |
$ |
6,906,944 |
$ |
50,630 |
1.48 |
% |
|
|
Demand
deposits |
|
|
3,340,257 |
|
|
|
3,409,209 |
|
|
|
|
Other
liabilities |
|
|
296,747 |
|
|
|
262,951 |
|
|
|
|
Stockholders' equity |
|
|
1,436,477 |
|
|
|
1,203,886 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
13,380,744 |
|
|
$ |
11,782,990 |
|
|
|
|
Net interest
income (FTE)1 |
|
|
$ |
193,664 |
|
|
$ |
184,948 |
|
|
|
Interest
rate spread |
|
|
|
2.33 |
% |
|
|
2.86 |
% |
|
|
Net interest
margin (FTE)1 |
|
|
|
3.16 |
% |
|
|
3.41 |
% |
|
|
Taxable
equivalent adjustment |
|
|
$ |
1,316 |
|
|
$ |
797 |
|
|
|
Net interest
income |
|
|
$ |
192,348 |
|
|
$ |
184,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
|
Operating net income |
|
|
|
|
|
|
|
|
Net income |
$ |
32,716 |
|
$ |
33,823 |
|
$ |
30,446 |
|
$ |
24,606 |
|
$ |
30,072 |
|
|
|
|
Acquisition
expenses |
|
- |
|
|
- |
|
|
254 |
|
|
7,917 |
|
|
1,189 |
|
|
|
|
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
losses (gains) |
|
92 |
|
|
(2,183 |
) |
|
(507 |
) |
|
183 |
|
|
4,641 |
|
|
|
|
Adjustments to net income |
$ |
92 |
|
$ |
(2,183 |
) |
$ |
4,497 |
|
$ |
17,686 |
|
$ |
5,830 |
|
|
|
|
Adjustments to net income (net of tax) |
$ |
72 |
|
$ |
(1,703 |
) |
$ |
3,435 |
|
$ |
13,730 |
|
$ |
4,525 |
|
|
|
|
Operating net income |
$ |
32,788 |
|
$ |
32,120 |
|
$ |
33,881 |
|
$ |
38,336 |
|
$ |
34,597 |
|
|
|
|
Operating
diluted earnings per share |
$ |
0.69 |
|
$ |
0.68 |
|
$ |
0.72 |
|
$ |
0.84 |
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
Operating net income |
|
|
|
|
|
|
|
|
Net income |
$ |
66,539 |
|
$ |
63,730 |
|
|
|
|
|
|
|
Acquisition
expenses |
|
- |
|
|
1,807 |
|
|
|
|
|
|
|
Securities
(gains) losses |
|
(2,091 |
) |
|
9,639 |
|
|
|
|
|
|
|
Adjustments to net income |
$ |
(2,091 |
) |
$ |
11,446 |
|
|
|
|
|
|
|
Adjustments to net income (net of tax) |
$ |
(1,631 |
) |
$ |
8,866 |
|
|
|
|
|
|
|
Operating net income |
$ |
64,908 |
|
$ |
72,596 |
|
|
|
|
|
|
|
Operating
diluted earnings per share |
$ |
1.37 |
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
|
FTE
adjustment |
|
|
|
|
|
|
|
|
Net interest
income |
$ |
97,174 |
|
$ |
95,174 |
|
$ |
99,173 |
|
$ |
94,895 |
|
$ |
89,085 |
|
|
|
|
Add: FTE adjustment |
|
658 |
|
|
658 |
|
|
669 |
|
|
568 |
|
|
402 |
|
|
|
|
Net interest
income (FTE) |
$ |
97,832 |
|
$ |
95,832 |
|
$ |
99,842 |
|
$ |
95,463 |
|
$ |
89,487 |
|
|
|
|
Average
earning assets |
$ |
12,367,957 |
|
$ |
12,273,657 |
|
$ |
12,564,076 |
|
$ |
11,803,043 |
|
$ |
10,983,347 |
|
|
|
|
Net interest
margin (FTE)3 |
|
3.18 |
% |
|
3.14 |
% |
|
3.15 |
% |
|
3.21 |
% |
|
3.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
FTE
adjustment |
|
|
|
|
|
|
|
|
Net interest
income |
$ |
192,348 |
|
$ |
184,151 |
|
|
|
|
|
|
|
Add: FTE adjustment |
|
1,316 |
|
|
797 |
|
|
|
|
|
|
|
Net interest
income (FTE) |
$ |
193,664 |
|
$ |
184,948 |
|
|
|
|
|
|
|
Average
earning assets |
$ |
12,320,807 |
|
$ |
10,946,842 |
|
|
|
|
|
|
|
Net interest
margin (FTE)3 |
|
3.16 |
% |
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income for
tax-exempt securities and loans have been adjusted to an FTE basis
using the statutory Federal income tax rate of 21%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
The following tables
provide the Non-GAAP reconciliations for the Non-GAAP measures
contained in this release: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP measures (continued) |
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
|
Tangible equity to tangible assets |
|
|
|
|
|
|
|
|
Total
equity |
$ |
1,461,955 |
|
$ |
1,441,415 |
|
$ |
1,425,691 |
|
$ |
1,362,821 |
|
$ |
1,210,493 |
|
|
|
|
Intangible
assets |
|
398,686 |
|
|
400,819 |
|
|
402,294 |
|
|
402,745 |
|
|
287,701 |
|
|
|
|
Total
assets |
$ |
13,501,909 |
|
$ |
13,439,199 |
|
$ |
13,309,040 |
|
$ |
13,827,628 |
|
$ |
11,890,497 |
|
|
|
|
Tangible
equity to tangible assets |
|
8.11 |
% |
|
7.98 |
% |
|
7.93 |
% |
|
7.15 |
% |
|
7.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
2nd Q |
1st Q |
4th Q |
3rd Q |
2nd Q |
|
|
|
Return on average tangible common equity |
|
|
|
|
|
|
|
Net
income |
$ |
32,716 |
|
$ |
33,823 |
|
$ |
30,446 |
|
$ |
24,606 |
|
$ |
30,072 |
|
|
|
|
Amortization
of intangible assets (net of tax) |
|
1,600 |
|
|
1,626 |
|
|
1,599 |
|
|
1,206 |
|
|
344 |
|
|
|
|
Net income, excluding intangibles amortization |
$ |
34,316 |
|
$ |
35,449 |
|
$ |
32,045 |
|
$ |
25,812 |
|
$ |
30,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
stockholders' equity |
$ |
1,443,351 |
|
$ |
1,429,602 |
|
$ |
1,373,643 |
|
$ |
1,305,686 |
|
$ |
1,217,306 |
|
|
|
|
Less:
average goodwill and other intangibles |
|
399,968 |
|
|
401,756 |
|
|
401,978 |
|
|
350,912 |
|
|
287,974 |
|
|
|
|
Average tangible common equity |
$ |
1,043,383 |
|
$ |
1,027,846 |
|
$ |
971,665 |
|
$ |
954,774 |
|
$ |
929,332 |
|
|
|
|
Return on
average tangible common equity3 |
|
13.23 |
% |
|
13.87 |
% |
|
13.08 |
% |
|
10.73 |
% |
|
13.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
Return on average tangible common equity |
|
|
|
|
|
|
|
Net
income |
$ |
66,539 |
|
$ |
63,730 |
|
|
|
|
|
|
|
Amortization
of intangible assets (net of tax) |
|
3,226 |
|
|
746 |
|
|
|
|
|
|
|
Net income, excluding intangibles amortization |
$ |
69,765 |
|
$ |
64,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
stockholders' equity |
$ |
1,436,477 |
|
$ |
1,203,886 |
|
|
|
|
|
|
|
Less:
average goodwill and other intangibles |
|
400,862 |
|
|
288,163 |
|
|
|
|
|
|
|
Average tangible common equity |
$ |
1,035,615 |
|
$ |
915,723 |
|
|
|
|
|
|
|
Return on
average tangible common equity3 |
|
13.55 |
% |
|
14.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
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