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NBT Bancorp Inc. Announces First Quarter Net Income of $29.1 Million and Diluted Earnings Per Share of $0.66

04/22/19

NORWICH, N.Y., April 22, 2019 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2019.

Net income for the three months ended March 31, 2019 was $29.1 million, up 1.7% from $28.7 million for the fourth quarter of 2018 and up 12.1% from $26.0 million for the first quarter of 2018. Diluted earnings per share for the three months ended March 31, 2019 was $0.66, as compared with $0.65 for the prior quarter, an increase of 1.5%, and $0.59 for the first quarter of 2018, an increase of 11.9%.

Highlights:

  • Net Income up 12.1% from the first quarter of 2018
  • Diluted earnings per share up 11.9% from the first quarter of 2018
  • Average demand deposits up 2.2% from the first quarter of 2018
  • FTE net interest margin of 3.64%, up 3 bps from the prior quarter
  • Full cycle deposit beta of 11.7% through the quarter ending March 31, 20191
  • Tangible equity ratio of 8.06%, up 54 bps from the first quarter of 2018

“In the first quarter of 2019, we achieved double-digit year-over-year earnings growth with net income and earnings per share up 12% over first quarter 2018. In addition, we continued to build our tangible capital which increases our ability to be opportunistic in executing on our long-term growth strategies,” said NBT President and CEO John H. Watt, Jr. “Our strong financial results affirm the quality of our team and their commitment to providing our customers with the best service and financial products while constantly working to enhance the experience we deliver. This customer-focused approach drives our success and is the foundation of our efforts to build shareholder value.”

Net interest income was $77.7 million for the first quarter of 2019, down $1.2 million, or 1.5%, from the previous quarter. The fully taxable equivalent (“FTE”) net interest margin was 3.64% for the three months ended March 31, 2019, up 3 basis points (“bps”) from the previous quarter, as higher rates on lower average interest-earning assets more than offset higher funding costs on higher average interest-bearing liabilities. Interest income increased $0.8 million, or 0.9%, as the yield on average interest-earning assets increased 14 bps from the prior quarter to 4.28%, while average interest-earning assets of $8.7 billion remained relatively consistent with prior quarter. Interest expense was up $2.0 million, or 17.2%, as the cost of interest-bearing liabilities increased 15 bps to 0.92% for the quarter ended March 31, 2019, driven by interest-bearing deposit costs increasing 16 bps along with increased short-term borrowings cost. The Federal Reserve has raised its target fed funds rate nine times from December 2015 through March 2019 for a total increase of 225 bps. During this same cycle of increasing rates, the Company’s average cost of deposits increased by 26 bps, resulting in a full cycle deposit beta of 11.7%.

Net interest income was $77.7 million for the first quarter of 2019, up $4.2 million, or 5.7%, from the first quarter of 2018. The FTE net interest margin of 3.64% was up 7 bps from the first quarter of 2018. Interest income increased $10.6 million, or 13.1%, as the yield on average interest-earning assets increased 36 bps from the same period in 2018, and average interest-earning assets increased $314.0 million, or 3.7%, primarily due to a $294.2 million increase in average loans. Interest expense increased $6.4 million, as the cost of interest-bearing liabilities increased 41 bps, driven by interest-bearing deposit costs increasing 38 bps combined with a 72 basis point increase in short-term borrowing costs.

Noninterest income for the three months ended March 31, 2019 was $33.8 million, up $7.9 million, or 30.4%, from the prior quarter and up $2.5 million, or 8.1%, from the first quarter of 2018. The increase from the prior quarter was primarily driven by lower net securities losses and seasonal increases in both insurance and other financial services revenue and retirement plan administration fees. In the fourth quarter of 2018, the Company restructured the investment portfolio by selling $109 million of lower-yielding bonds and reinvesting the proceeds in higher-yielding bonds, which resulted in a $6.6 million loss on securities sold. Excluding net securities gains (losses), noninterest income for the three months ended March 31, 2019 would have been $33.8 million, up $0.9 million, or 2.7% from the prior quarter and up $2.6 million, or 8.2% from the first quarter of 2018. The increase from the first quarter of 2018 was primarily due to higher retirement plan administration fees resulting from the acquisition of Retirement Plan Services, LLC (“RPS”) in the second quarter of 2018.

Noninterest expense for the three months ended March 31, 2019 was $68.5 million, down $0.4 million, or 0.6%, from the prior quarter and up $4.2 million, or 6.5%, from the first quarter of 2018. The decrease from the prior quarter was primarily due to a $1.1 million decrease in other noninterest expense due to the timing of expense items combined with $0.4 million in non-recurring items in the fourth quarter of 2018, partially offset by a $0.7 million increase in pension interest and amortization costs. Advertising expense decreased from the prior quarter by $0.5 million due to the timing of expenses in the fourth quarter of 2018. These decreases were partially offset by a $1.0 million increase in occupancy expense due to seasonal expenses. The increase from the first quarter of 2018 was driven by increases in salaries and employee benefits expense, equipment expense and other noninterest expense, which were partially offset by a decrease in loan collection and other real estate owned. Salaries and employee benefits expense increased from the first quarter of 2018 due primarily to the acquisition of RPS in the second quarter of 2018 and related employee benefits expenses combined with a $0.4 million increase in salaries related to the tax reform initiatives implemented in the first quarter of 2018.

Income tax expense for the three months ended March 31, 2019 was $8.1 million, up $7.4 million, from the prior quarter and up $1.1 million from the first quarter of 2018. The effective tax rate of 21.8% for the first quarter of 2019 was up from 2.5% for the fourth quarter of 2018 and up from 21.2% for the first quarter of 2018. The increase in income tax expense from the prior quarter was primarily due to a $5.5 million tax benefit recorded in the fourth quarter of 2018 primarily related to one-time income tax return accounting method changes during the fourth quarter of 2018. The increase in income tax expense from the first quarter of 2018 was primarily due to a higher level of taxable income.

Asset Quality

Net charge-offs of $6.9 million for the three months ended March 31, 2019 were comparable to $6.8 million for the prior quarter and for the first quarter of 2018. Provision expense was lower at $5.8 million for the three months ended March 31, 2019, as compared with $6.5 million for the prior quarter and as compared with $7.5 million for the first quarter of 2018. Annualized net charge-offs to average loans for the first quarter of 2019 was 0.41%, up from 0.39% for the prior quarter and down from 0.42% for the first quarter of 2018.

Nonperforming loans to total loans was 0.42% at March 31, 2019, down 2 bps from 0.44% for the prior quarter and down 1 bp from 0.43% at March 31, 2018. Past due loans as a percentage of total loans were 0.52% at March 31, 2019, down from 0.55% at December 31, 2018 and down from 0.53% at March 31, 2018.

The allowance for loan losses totaled $71.4 million at March 31, 2019, compared to $72.5 million at December 31, 2018 and $70.2 million at March 31, 2018. The allowance for loan losses as a percentage of loans was 1.04% (1.09% excluding acquired loans) at March 31, 2019, compared to 1.05% (1.10% excluding acquired loans) at December 31, 2018 and 1.06% (1.12% excluding acquired loans) at March 31, 2018.

Balance Sheet

Total assets were $9.5 billion at March 31, 2019 compared with $9.6 billion at December 31, 2018. Loans were $6.9 billion at March 31, 2019, comparable to December 31, 2018. In the first quarter of 2019, loan growth in commercial and commercial real estate was offset by run-off in our dealer finance portfolio. This is consistent with the Company’s strategy to focus on our higher returning portfolios thus reducing the need to rely more on price sensitive deposits to fund loan growth during the current interest rate environment. Total deposits were $7.6 billion at March 31, 2019, up $249.4 million, or 3.4%, from December 31, 2018, reflecting growth in core and municipal deposits. Stockholders’ equity was $1.0 billion, representing a total equity-to-total assets ratio of 10.85% at March 31, 2019, compared with $1.0 billion or a total equity-to-total assets ratio of 10.65% at December 31, 2018.

Dividend

On March 25, 2019, the Company announced that the Board of Directors approved a second-quarter 2019 cash dividend of $0.26 per share. The dividend will be paid on June 14, 2019 to shareholders of record as of May 31, 2019.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.5 billion at March 31, 2019. 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 149 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. EPIC Retirement Plan Services, based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtinsurance.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others: (1) competitive pressures among depository and other financial institutions may increase significantly, including as a result of competitors having greater financial resources than NBT; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect business and results; (6) NBT’s ability to successfully integrate acquired businesses and employees; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

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”). These measures adjust GAAP measures to exclude the effects of acquisition related intangible amortization expense on earnings, equity and assets as well as providing a FTE yield on securities and loans. Where non-GAAP disclosures are used in this press release, 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 NBT’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 NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

1 The change in the Company’s quarterly deposit costs from December 31, 2015 to March 31, 2019 of 0.26% divided by the change in Federal Reserve’s target fed funds rate from December 2015 to March 2019 of 2.25%

Contact:

John H. Watt, Jr., President and CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6589

           
NBT Bancorp Inc. and Subsidiaries          
Selected Financial Data
(unaudited, dollars in thousands except per share data)
           
  2019 2018
Profitability: 1st Q 4th Q 3rd Q 2nd Q 1st Q
Diluted earnings per share $    0.66   $ 0.65   $ 0.68   $ 0.64   $ 0.59  
Weighted average diluted common shares outstanding   44,081,086     44,059,796     44,050,557     44,016,940     43,975,248  
Return on average assets (1)   1.24 %   1.20 %   1.25 %   1.21 %   1.15 %
Return on average equity (1)   11.52 %   11.34 %   11.96 %   11.64 %   10.99 %
Return on average tangible common equity (1)(3)   16.45 %   16.37 %   17.42 %   17.08 %   15.95 %
Net interest margin (1)(2)   3.64 %   3.61 %   3.57 %   3.57 %   3.57 %
           
Balance sheet data:          
Securities available for sale $    951,859   $ 998,496   $ 1,101,074   $ 1,192,939   $ 1,265,912  
Securities held to maturity     780,565     783,599     659,949     544,163     487,126  
Net loans     6,818,907     6,815,204     6,814,457     6,785,721     6,575,522  
Total assets     9,533,510     9,556,363     9,547,284     9,467,138     9,230,834  
Total deposits     7,617,659     7,368,211     7,441,290     7,344,449     7,393,928  
Total borrowings     719,775     1,046,616     986,656     1,028,971     776,032  
Total liabilities     8,499,455     8,538,454     8,553,129     8,488,209     8,278,104  
Stockholders' equity     1,034,055     1,017,909     994,155     978,929     952,730  
           
Asset quality:          
Nonaccrual loans $    25,632   $ 25,487   $ 23,301   $ 24,006   $ 25,426  
90 days past due and still accruing     3,335     5,085     4,734     2,209     2,934  
Total nonperforming loans     28,967     30,572     28,035     26,215     28,360  
Other real estate owned     2,222     2,441     3,271     4,349     4,949  
Total nonperforming assets     31,189     33,013     31,306     30,564     33,309  
Allowance for loan losses     71,405     72,505     72,805     72,450     70,200  
           
Asset quality ratios (total):          
Allowance for loan losses to total loans   1.04 %   1.05 %   1.06 %   1.06 %   1.06 %
Total nonperforming loans to total loans   0.42 %   0.44 %   0.41 %   0.38 %   0.43 %
Total nonperforming assets to total assets   0.33 %   0.35 %   0.33 %   0.32 %   0.36 %
Allowance for loan losses to total nonperforming loans   246.50 %   237.16 %   259.69 %   276.37 %   247.53 %
Past due loans to total loans   0.52 %   0.55 %   0.53 %   0.50 %   0.53 %
Net charge-offs to average loans (1)   0.41 %   0.39 %   0.33 %   0.39 %   0.42 %
           
Asset quality ratios (originated) (4):          
Allowance for loan losses to loans   1.09 %   1.10 %   1.11 %   1.11 %   1.12 %
Nonperforming loans to loans   0.41 %   0.43 %   0.39 %   0.36 %   0.41 %
Allowance for loan losses to nonperforming loans   265.63 %   254.92 %   285.86 %   306.08 %   273.54 %
Past due loans to loans   0.52 %   0.56 %   0.53 %   0.50 %   0.53 %
           
Capital:          
Equity to assets   10.85 %   10.65 %   10.41 %   10.34 %   10.32 %
Tangible equity ratio (5)   8.06 %   7.85 %   7.59 %   7.48 %   7.52 %
Book value per share $    23.64   $ 23.31   $ 22.77   $ 22.43   $ 21.84  
Tangible book value per share (6) $    17.02   $ 16.66   $ 16.10   $ 15.73   $ 15.41  
Tier 1 leverage ratio   9.62 %   9.52 %   9.36 %   9.25 %   9.26 %
Common equity tier 1 capital ratio   10.69 %   10.49 %   10.28 %   10.04 %   10.12 %
Tier 1 capital ratio   11.99 %   11.79 %   11.58 %   11.35 %   11.48 %
Total risk-based capital ratio   12.98 %   12.78 %   12.58 %   12.34 %   12.47 %
Common stock price (end of period) $    36.01   $ 34.59   $ 38.38   $ 38.15   $ 35.48  
           
(1) Annualized.          
(2) Calculated on a FTE basis.          
(3) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
           
  2019 2018
  1st Q 4th Q 3rd Q 2nd Q 1st Q
Net income $    29,127   $ 28,652   $ 29,807   $ 28,121   $ 25,986  
Amortization of intangible assets (net of tax)     726     734     791     822     686  
Net income, excluding intangibles amortization $    29,853   $ 29,386   $ 30,598   $ 28,943   $ 26,672  
           
Average stockholders' equity $    1,025,753   $ 1,002,822   $ 988,551   $ 969,029   $ 959,044  
Less: average goodwill and other intangibles     289,913     290,854     291,814     289,250     281,027  
Average tangible common equity $    735,840   $ 711,968   $ 696,737   $ 679,779   $ 678,017  
           
(4)  Non-GAAP measure - Excludes acquired loans.
(5)  Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
(6)  Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
 

 

 
NBT Bancorp Inc. and Subsidiaries 
Consolidated Balance Sheets
(unaudited, dollars in thousands)
     
  March 31, December 31,
Assets 2019 2018
Cash and due from banks $    143,989   $ 175,550  
Short-term interest bearing accounts     33,130     5,405  
Equity securities, at fair value     25,482     23,053  
Securities available for sale, at fair value     951,859     998,496  
Securities held to maturity (fair value $782,761 and $778,675)     780,565     783,599  
Federal Reserve and Federal Home Loan Bank stock     43,957     53,229  
Loans held for sale     8,525     6,943  
Loans     6,890,312     6,887,709  
Less allowance for loan losses     71,405     72,505  
Net loans $    6,818,907   $ 6,815,204  
Premises and equipment, net     78,391     78,970  
Goodwill     274,769     274,769  
Intangible assets, net     14,631     15,599  
Bank owned life insurance     178,856     177,479  
Other assets     180,449     148,067  
Total assets $    9,533,510   $ 9,556,363  
     
Liabilities and stockholders' equity    
Demand (noninterest bearing) $    2,324,981   $ 2,361,099  
Savings, NOW and money market     4,370,374     4,076,434  
Time     922,304     930,678  
Total deposits $    7,617,659   $ 7,368,211  
Short-term borrowings     544,883     871,696  
Long-term debt     73,696     73,724  
Junior subordinated debt     101,196     101,196  
Other liabilities     162,021     123,627  
Total liabilities $    8,499,455   $ 8,538,454  
     
Total stockholders' equity $    1,034,055   $ 1,017,909  
     
Total liabilities and stockholders' equity $    9,533,510   $ 9,556,363  
     

 

 
NBT Bancorp Inc. and Subsidiaries 
Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
     
  Three Months Ended
  March 31,
  2019
2018
Interest, fee and dividend income    
Interest and fees on loans $    79,321   $ 70,443  
Securities available for sale   5,922     6,926  
Securities held to maturity   5,217     2,625  
Other   884     766  
Total interest, fee and dividend income $    91,344   $ 80,760  
Interest expense    
Deposits $    8,826   $ 3,931  
Short-term borrowings   3,237     1,966  
Long-term debt   422     476  
Junior subordinated debt   1,168     901  
Total interest expense $    13,653   $ 7,274  
Net interest income $    77,691   $ 73,486  
Provision for loan losses   5,807     7,496  
Net interest income after provision for loan losses $    71,884   $ 65,990  
Noninterest income    
Insurance and other financial services revenue $    6,756   $ 6,504  
Service charges on deposit accounts   4,236     3,972  
ATM and debit card fees   5,525     5,273  
Retirement plan administration fees   7,734     5,339  
Trust   4,551     4,878  
Bank owned life insurance income   1,377     1,347  
Net securities gains     57     72  
Other   3,585     3,892  
Total noninterest income $    33,821   $ 31,277  
Noninterest expense    
Salaries and employee benefits $    39,356   $ 36,567  
Occupancy   6,275     6,119  
Data processing and communications   4,414     4,279  
Professional fees and outside services   3,668     3,492  
Equipment   4,757     4,038  
Office supplies and postage   1,591     1,573  
FDIC expense     1,017     1,201  
Advertising   503     337  
Amortization of intangible assets   968     914  
Loan collection and other real estate owned, net   785     1,337  
Other   5,126     4,415  
Total noninterest expense $    68,460   $ 64,272  
Income before income tax expense $    37,245   $ 32,995  
Income tax expense   8,118     7,009  
  Net income $    29,127   $ 25,986  
Earnings Per Share    
Basic $    0.67   $ 0.60  
Diluted $    0.66   $ 0.59  
     

 

 
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
           
  2019
2018
  1st Q 4th Q 3rd Q 2nd Q 1st Q
Interest, fee and dividend income          
Interest and fees on loans $    79,321   $ 78,963   $ 77,249   $ 74,172   $ 70,443  
Securities available for sale     5,922     6,332     6,659     7,003     6,926  
Securities held to maturity     5,217     4,344     3,462     2,811     2,625  
Other     884     885     834     781     766  
Total interest, fee and dividend income $    91,344   $ 90,524   $ 88,204   $ 84,767   $ 80,760  
Interest expense          
Deposits $    8,826   $ 6,977   $ 6,157   $ 5,079   $ 3,931  
Short-term borrowings     3,237     3,131     3,000     2,455     1,966  
Long-term debt     422     431     431     452     476  
Junior subordinated debt     1,168     1,110     1,089     1,040     901  
Total interest expense $    13,653   $ 11,649   $ 10,677   $ 9,026   $ 7,274  
Net interest income $    77,691   $ 78,875   $ 77,527   $ 75,741   $ 73,486  
Provision for loan losses     5,807     6,528     6,026     8,778     7,496  
Net interest income after provision for loan losses $    71,884   $ 72,347   $ 71,501   $ 66,963   $ 65,990  
Noninterest income          
Insurance and other financial services revenue $    6,756   $ 5,843   $ 6,172   $ 5,826   $ 6,504  
Service charges on deposit accounts     4,236     4,503     4,503     4,246     3,972  
ATM and debit card fees     5,525     5,704     5,906     5,816     5,273  
Retirement plan administration fees     7,734     7,113     7,244     7,296     5,339  
Trust     4,551     4,573     4,808     5,265     4,878  
Bank owned life insurance income     1,377     1,239     1,288     1,217     1,347  
Net securities gains (losses)     57     (6,916 )   412     91     72  
Other     3,585     3,887     3,048     4,401     3,892  
Total noninterest income $    33,821   $ 25,946   $ 33,381   $ 34,158   $ 31,277  
Noninterest expense          
Salaries and employee benefits $    39,356   $ 38,998   $ 38,394   $ 37,726   $ 36,567  
Occupancy     6,275     5,284     5,380     5,535     6,119  
Data processing and communications     4,414     4,431     4,434     4,508     4,279  
Professional fees and outside services     3,668     3,968     3,580     3,336     3,492  
Equipment     4,757     4,529     4,319     4,151     4,038  
Office supplies and postage     1,591     1,564     1,563     1,504     1,573  
FDIC expense     1,017     1,135     1,223     1,092     1,201  
Advertising     503     1,006     739     700     337  
Amortization of intangible assets     968     978     1,054     1,096     914  
Loan collection and other real estate owned, net     785     738     1,234     908     1,337  
Other     5,126     6,273     4,577     4,332     4,415  
Total noninterest expense $    68,460   $ 68,904   $ 66,497   $ 64,888   $ 64,272  
Income before income tax expense $    37,245   $ 29,389   $ 38,385   $ 36,233   $ 32,995  
Income tax expense     8,118     737     8,578     8,112     7,009  
  Net income $    29,127   $ 28,652   $ 29,807   $ 28,121   $ 25,986  
Earnings Per Share          
Basic $    0.67   $ 0.66   $ 0.68   $ 0.64   $ 0.60  
Diluted $    0.66   $ 0.65   $ 0.68   $ 0.64   $ 0.59  
           

 

 
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 - 2019 Q4 - 2018 Q3 - 2018 Q2 - 2018 Q1 - 2018
Assets                      
Short-term interest bearing accounts   $    9,065   4.07 % $ 3,780   5.25 % $ 3,328   6.08 % $ 3,574   5.16 % $ 2,818   5.18 %
Securities available for sale (1) (3)       984,704   2.45 %   1,104,198   2.29 %   1,197,910   2.22 %   1,266,304   2.23 %   1,273,634   2.22 %
Securities held to maturity (1) (3)       782,570   2.90 %   688,840   2.73 %   591,220   2.58 %   503,501   2.50 %   482,375   2.48 %
Investment in FRB and FHLB Banks       49,152   6.54 %   47,689   6.95 %   50,107   6.20 %   48,184   6.12 %   46,844   6.32 %
Loans (2) (3)       6,886,672   4.68 %   6,876,341   4.56 %   6,839,565   4.49 %   6,750,710   4.41 %   6,592,447   4.34 %
Total interest earning assets   $   8,712,163   4.28 % $ 8,720,848   4.14 % $ 8,682,130   4.05 % $ 8,572,273   3.99 % $ 8,398,118   3.92 %
Other assets       795,585       769,302       776,219       766,604       746,172    
Total assets   $   9,507,748     $ 9,490,150     $ 9,458,349     $ 9,338,877     $ 9,144,290    
                       
Liabilities and stockholders' equity                      
Money market deposit accounts   $   1,804,053   0.99 % $ 1,745,980   0.65 % $ 1,724,853   0.58 % $ 1,699,956   0.43 % $ 1,655,308   0.27 %
NOW deposit accounts       1,135,213   0.16 %   1,166,383   0.18 %   1,164,513   0.17 %   1,222,889   0.16 %   1,211,029   0.13 %
Savings deposits       1,252,042   0.06 %   1,250,703   0.06 %   1,279,520   0.06 %   1,289,062   0.06 %   1,248,432   0.06 %
Time deposits       942,457   1.64 %   921,252   1.47 %   881,792   1.33 %   858,080   1.22 %   802,959   1.13 %
Total interest bearing deposits   $   5,133,765   0.70 % $ 5,084,318   0.54 % $ 5,050,678   0.48 % $ 5,069,987   0.40 % $ 4,917,728   0.32 %
Short-term borrowings       712,306   1.84 %   724,693   1.71 %   766,372   1.55 %   706,694   1.39 %   712,220   1.12 %
Long-term debt       73,707   2.32 %   73,735   2.32 %   73,762   2.32 %   84,676   2.14 %   88,844   2.17 %
Junior subordinated debt       101,196   4.68 %   101,196   4.35 %   101,196   4.27 %   101,196   4.12 %   101,196   3.61 %
Total interest bearing liabilities   $   6,020,974   0.92 % $ 5,983,942   0.77 % $ 5,992,008   0.71 % $ 5,962,553   0.61 % $ 5,819,988   0.51 %
Demand deposits       2,309,531       2,373,235       2,356,216       2,294,023       2,259,955    
Other liabilities       151,490       130,151       121,574       113,272       105,303    
Stockholders' equity       1,025,753       1,002,822       988,551       969,029       959,044    
Total liabilities and stockholders' equity   $   9,507,748     $ 9,490,150     $ 9,458,349     $ 9,338,877     $ 9,144,290    
                       
Interest rate spread     3.36 %   3.37 %   3.34 %   3.38 %   3.41 %
Net interest margin (FTE) (3)     3.64 %   3.61 %   3.57 %   3.57 %   3.57 %
                       
(1) Securities are shown at average amortized cost.
(2) For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
(3) Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. The total amount of adjustment to present yields on a FTE basis is $500, $535, $529, $478 and $465 for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.
 

 

 
NBT Bancorp Inc. and Subsidiaries
Consolidated Loan Balances
(unaudited, dollars in thousands)
           
  2019
2018
  1st Q 4th Q 3rd Q 2nd Q 1st Q
Commercial $    1,306,551   $ 1,291,568   $ 1,310,262   $ 1,299,437   $ 1,252,729  
Commercial real estate     1,943,931     1,930,742     1,902,315     1,891,119     1,795,101  
Residential real estate mortgages     1,390,411     1,380,836     1,373,487     1,350,336     1,331,587  
Dealer finance     1,191,111     1,216,144     1,229,700     1,252,843     1,238,051  
Specialty lending     529,144     524,928     521,396     507,151     469,268  
Home equity     463,582     474,566     480,761     488,493     491,807  
Other consumer     65,582     68,925     69,341     68,792     67,179  
Total loans $    6,890,312   $ 6,887,709   $ 6,887,262   $ 6,858,171   $ 6,645,722  
           

 

Source: NBT Bancorp Inc.

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