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NBT Bancorp Inc. Announces First Quarter Net Income of $39.8 Million ($0.91 Per Diluted Common Share); Approves Dividend

04/26/21

NORWICH, N.Y., April 26, 2021 (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, 2021.

Net income for the three months ended March 31, 2021 was $39.8 million, or $0.91 per diluted common share. Net income increased $5.7 million from the previous quarter primarily due to lower provision for loan losses and branch optimization charges recognized in the previous quarter. Net income increased $29.5 million from the first quarter of 2020 due to the adoption of the Current Expected Credit Losses (“CECL”) accounting methodology, including the estimated impact of the COVID-19 pandemic on expected credit losses, which resulted in first quarter 2020 provision for loan losses of $29.6 million.

Pre-provision net revenue (“PPNR”)1 for the first quarter of 2021 was $47.5 million compared to $48.2 million in the previous quarter and $44.9 million in the first quarter of 2020.

CEO Comments

“The results for the first quarter of 2021 demonstrate the resiliency of our banking platform. We drove commercial loan growth and experienced increased levels of consumer activity. Our mortgage pipeline is strong, and our indirect auto business exceeded production targets,” said NBT President and CEO John H. Watt, Jr. “We are optimistic about the prospects for the rest of the year driven by pent up demand and a snap back in many sectors of the economy that we anticipate will occur as the markets we serve continue to open up. Sustained levels of excellent credit quality allow for plenty of optionality in the deployment of capital which will drive growth. Record Assets Under Management and Administration in our wealth management business exceeded $9 billion. Finally, we leaned heavily into the Paycheck Protection Program in the latest round of funding to support the Main Street businesses and non-profits that are the backbone of the communities we serve.”

First Quarter Financial Highlights

Net Income
  • Net income of $39.8 million
  • Diluted earnings per share of $0.91
Net Interest Income / NIM
  • Net interest income on a fully taxable equivalent basis was $79.4 million1
  • Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.17%1, down 3 basis points (“bps”) from the prior quarter
PPNR
  • PPNR1 was $47.5 million compared to $48.2 million in the fourth quarter of 2020 and $44.9 million in the first quarter of 2020
Loans and Credit Quality
  • Period end loans were $7.6 billion, up 7%, annualized, from December 31, 2020
  • Excluding $536 million of Paycheck Protection Program (“PPP”) loans at March 31, 2021, period end loans increased $29 million or 0.4% from December 31, 2020
  • Allowance for loan losses to total loans of 1.38% (1.48% excluding PPP loans and related allowance), down 9 bps from the fourth quarter (down 8 bps excluding PPP loans and related allowance)
  • Net charge-offs to average loans was 0.12%, annualized (0.13% excluding PPP loans)
  • Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans)
Capital
  • Tangible book value per share2 grew 1% for the quarter and 9% from prior year to $20.71 at March 31, 2021
  • Tangible equity to assets of 8.00%1
  • CET1 ratio of 12.13%; Leverage ratio of 9.60%

Loans

  • Period end total loans were $7.6 billion at March 31, 2021 and $7.5 billion at December 31, 2020.
  • Excluding PPP loans, period end loans increased $28.9 million from December 31, 2020. Commercial and industrial loans increased $3.6 million to $1.3 billion; commercial real estate loans increased $57.5 million to $2.4 billion; and total consumer loans decreased $32.2 million to $3.4 billion.
  • Total PPP loans as of March 31, 2021 were $536 million (net of unamortized fees). The following activity occurred during the first quarter of 2021:
    • $250 million in originations
    • $132.8 million of loans forgiven
    • $6.2 million recognized into interest income
  • Commercial line of credit utilization rate was 22% at March 31, 2021 consistent with 22% at December 31, 2020 and compared to 32% at March 31, 2020.

Deposits

  • Average total deposits in the first quarter of 2021 were $9.3 billion, compared to $9.1 billion in the fourth quarter of 2020, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts.
  • Loan to deposit ratio was 77.8% at March 31, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

  • Net interest income for the first quarter of 2021 was $79.1 million, down $1.1 million or 1.3% from the fourth quarter of 2020 and up $1.9 million or 2.4% from the first quarter of 2020.
  • The NIM on a fully taxable equivalent (“FTE”) basis for the first quarter of 2021 was 3.17%, down 3 bps from the fourth quarter of 2020 and down 35 bps from the first quarter of 2020. The net impact of PPP loans and excess liquidity impacted the NIM by 8 bps in the both the first quarter and fourth quarter of 2020. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 3 bps from the prior quarter primarily due to an 8 bps decline in earning asset yields partially offset by a 6 bps decline in the cost of interest bearing liabilities and a $141 million increase in average checking deposit account balances during the quarter.
  • Earning asset yields for the three months ended March 31, 2021 were down 8 bps from the prior quarter and down 69 bps from the same quarter in the prior year. Earning assets grew $155.5 million or 1.6% from the prior quarter and grew $1.3 billion or 14.4% from the same quarter in the prior year. The following are highlights from the prior quarter:
    • Excess liquidity resulted in a $34.8 million increase in the average balances of short-term interest bearing accounts.
    • The average balance of investment securities increased $83.0 million while yields declined 6 bps.
    • Loan yields decreased 4 bps to 4.02% for the quarter. Excluding PPP loans, yields decreased 7 bps from the prior quarter driven by a 12 bps yield reduction in the commercial loan portfolio.
  • Total cost of deposits was 0.14% for the first quarter of 2021, down 3 bps from the prior quarter and down 34 bps from the same period in the prior year.
  • The cost of interest-bearing liabilities for the three months ended March 31, 2021 was 0.34%, down 6 bps compared to the prior quarter of 0.40% and down 48 bps from the first quarter of 2020 of 0.82%.
    • Cost of interest-bearing deposits decreased 5 bps from the prior quarter and decreased 48 bps from the same quarter in 2020.

Credit Quality and Allowance for Credit Losses

  • Net charge-offs to total average loans of 12 bps (13 bps excluding PPP loans) compared to 21 bps (22 bps excluding PPP loans) in the prior quarter and 32 bps in the first quarter of 2020. The decrease in charge-offs during the first quarter of 2021 was primarily due to lower charge-offs in commercial and indirect auto, which continue to be at lower levels due to pandemic relief programs.
  • Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans) compared to 0.45% (0.47% excluding PPP loans) at December 31, 2020.
  • Provision expense for the three months ended March 31, 2021 was ($2.8) million and net charge-offs were $2.2 million. Provision expense decreased $2.2 million from the fourth quarter of 2020 and decreased $32.4 million from the first quarter of 2020. The decrease in provision expense from the prior quarter and first quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an improved economic forecast.
  • The allowance for loan losses was $105.0 million or 1.38% (1.48% excluding PPP loans and related allowance) of total loans compared to 1.47% (1.56% excluding PPP loans and related allowance) at December 31, 2020. The decrease in the level of allowance for credit losses was primarily due to the positive impact the forecasted improving economic conditions had on expected credit losses.
  • As of April 12, 2021, 1.0% of loans (loans outstanding as of March 31, 2021; excluding PPP balances) are in payment deferral programs which is down from the second quarter 2020 peak of 14.9%.
  • The reserve for unfunded loan commitments decreased to $5.9 million at March 31, 2021 compared to the prior quarter at $6.4 million.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $36.6 million for the three months ended March 31, 2021, down $1.4 million from the prior quarter and up $0.3 million from the prior year quarter.
  • Service charges on deposit accounts were lower than the prior quarter and lower than the first quarter of 2020. Overdraft charges have been lower during the COVID-19 pandemic.
  • ATM and debit card fees were comparable to the prior quarter and higher compared to the first quarter of 2020 due to increased volume and higher per transaction rates.
  • Retirement plan administration fees were higher than the prior quarter driven by market performance and organic growth, and higher than the first quarter of 2020 due to the April 1, 2020 acquisition of Alliance Benefit Group of Illinois, Inc. (“ABG”) contributing $1.7 million in revenues during the first quarter of 2021 and $1.5 million during the fourth quarter of 2020.
  • The decrease in other noninterest income from the prior quarter was primarily due to lower loan swap fee income and the decrease from the first quarter of 2020 was driven by lower loan swap fee income combined with lower mortgage banking income.

Noninterest Expense

  • Total noninterest expense for the first quarter of 2021 was down 9.7% from the previous quarter and down 4.2% from the first quarter of 2020, primarily due to $4.1 million in branch optimization costs incurred during the fourth quarter of 2020.
  • Salaries and benefits increased from the prior quarter due to seasonally higher payroll taxes and stock-based compensation expenses and increased from the first quarter of 2020 driven by the addition of ABG’s salaries and benefits.
  • Data processing and communications increased from the prior quarter and the first quarter of 2020 driven by charges related to the addition of a digitized PPP platform.
  • Professional fees and outside services decreased from the prior quarter due to timing of initiatives.
  • Other expenses decreased $7.4 million from the prior quarter due to $4.1 million in branch optimization charges recognized in the prior quarter, a $1.4 million decrease in the provision for the reserve for unfunded commitments, lower travel training expenses and lower pension costs. The decrease from the first quarter of 2020 was due to a $2.5 million decrease in the reserve for unfunded commitments, lower travel training expenses during the COVID-19 pandemic and lower pension costs.

Income Taxes

  • The effective tax rate was 21.9% for the first quarter of 2021 compared to 21.6% for the fourth quarter of 2020 and 14.2% for the first quarter of 2020. The increase from the first quarter of 2020 was due to a higher level of taxable income relative to total income.

Capital

  • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.00%. Tangible book value per share2 grew 1% from the prior quarter and 9% from the prior year quarter to $20.71.
  • March 31, 2021 CET1 capital ratio of 12.13%, leverage ratio of 9.60 % and total risk-based capital ratio of 15.92 %.

Stock Repurchase and Dividend

  • The Company purchased 257,031 shares of common stock during the first quarter of 2021 at a weighted average price of $35.09 excluding commissions. As of March 31, 2021, there were 1,742,969 shares available for repurchase under this plan, which expires on December 31, 2021.
  • The Board of Directors approved a second-quarter cash dividend of $0.27 per share at a meeting held today. The dividend will be paid on June 15, 2021 to shareholders of record as of June 1, 2021.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 27, 2021, to review first quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-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 $11.5 billion at March 31, 2021. 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 141 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine, and is currently entering Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

Forward-Looking Statements

This news 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 and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions 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, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (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 (“FASB”) 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; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and its impact on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not 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: John H. Watt, Jr., President and CEO
  John V. Moran, Executive Vice President and 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)  
             
    2021     2020    
  1st Q 4th Q 3rd Q 2nd Q 1st Q  
Profitability:            
Diluted earnings per share $ 0.91   $ 0.78   $ 0.80   $ 0.56   $ 0.23    
Weighted average diluted common shares outstanding   43,889,889     43,973,971     43,941,953     43,928,344     44,130,324    
Return on average assets3   1.46 %   1.24 %   1.29 %   0.94 %   0.43 %  
Return on average equity3   13.57 %   11.59 %   12.09 %   8.76 %   3.69 %  
Return on average tangible common equity1 3   18.24 %   15.71 %   16.51 %   12.14 %   5.24 %  
Net interest margin1 3   3.17 %   3.20 %   3.17 %   3.38 %   3.52 %  
             
    2021     2020    
  1st Q 4th Q 3rd Q 2nd Q 1st Q  
Balance sheet data:            
Securities available for sale $ 1,387,028   $ 1,348,698   $ 1,197,925   $ 1,108,443   $ 1,000,980    
Securities held to maturity   592,999     616,560     663,088     599,164     621,359    
Net loans   7,528,459     7,388,885     7,446,143     7,514,491     7,147,383    
Total assets   11,537,253     10,932,906     10,850,212     10,847,184     9,953,543    
Total deposits   9,815,930     9,081,692     8,958,183     8,815,891     7,864,638    
Total borrowings   308,766     406,731     446,737     602,988     714,283    
Total liabilities   10,346,272     9,745,288     9,684,101     9,704,532     8,841,364    
Stockholders' equity   1,190,981     1,187,618     1,166,111     1,142,652     1,112,179    
             
Capital:            
Equity to assets   10.32 %   10.86 %   10.75 %   10.53 %   11.17 %  
Tangible equity ratio1   8.00 %   8.41 %   8.27 %   8.04 %   8.55 %  
Book value per share $ 27.43   $ 27.22   $ 26.74   $ 26.20   $ 25.52    
Tangible book value per share2 $ 20.71   $ 20.52   $ 20.02   $ 19.46   $ 18.96    
Leverage ratio   9.60 %   9.56 %   9.48 %   9.44 %   10.02 %  
Common equity tier 1 capital ratio   12.13 %   11.84 %   11.63 %   11.34 %   10.90 %  
Tier 1 capital ratio   13.38 %   13.09 %   12.88 %   12.60 %   12.14 %  
Total risk-based capital ratio   15.92 %   15.62 %   15.43 %   15.15 %   13.36 %  
Common stock price (end of period) $ 39.90   $ 32.10   $ 26.82   $ 30.06   $ 32.39    
   



NBT Bancorp Inc. and Subsidiaries  
Selected Financial Data  
(unaudited, dollars in thousands except per share data)  
             
    2021     2020    
  1st Q 4th Q 3rd Q 2nd Q 1st Q  
Asset quality:            
Nonaccrual loans $ 43,399   $ 44,647   $ 35,896   $ 25,567   $ 29,972    
90 days past due and still accruing   2,155     3,149     2,579     2,057     2,280    
Total nonperforming loans   45,554     47,796     38,475     27,624     32,252    
Other real estate owned   1,318     1,458     1,605     1,783     2,384    
Total nonperforming assets   46,872     49,254     40,080     29,407     34,636    
Allowance for loan losses   105,000     110,000     114,500     113,500     100,000    
             
Asset quality ratios (total):            
Allowance for loan losses to total loans   1.38 %   1.47 %   1.51 %   1.49 %   1.38 %  
Total nonperforming loans to total loans   0.60 %   0.64 %   0.51 %   0.36 %   0.45 %  
Total nonperforming assets to total assets   0.41 %   0.45 %   0.37 %   0.27 %   0.35 %  
Allowance for loan losses to total nonperforming loans   230.50 %   230.14 %   297.60 %   410.87 %   310.06 %  
Past due loans to total loans   0.22 %   0.37 %   0.26 %   0.30 %   0.51 %  
Net charge-offs to average loans3   0.12 %   0.21 %   0.12 %   0.28 %   0.32 %  
             
Asset quality ratios (excluding paycheck protection program):        
Allowance for loan losses to total loans   1.48 %   1.56 %   1.62 %   1.59 %   1.38 %  
Total nonperforming loans to total loans   0.64 %   0.68 %   0.55 %   0.39 %   0.45 %  
Total nonperforming assets to total assets   0.43 %   0.47 %   0.39 %   0.28 %   0.35 %  
Allowance for loan losses to total nonperforming loans   230.44 %   230.10 %   297.53 %   410.78 %   310.06 %  
Past due loans to total loans   0.23 %   0.39 %   0.28 %   0.32 %   0.51 %  
Net charge-offs to average loans3   0.13 %   0.22 %   0.13 %   0.30 %   0.32 %  
             



NBT Bancorp Inc. and Subsidiaries    
Consolidated Balance Sheets    
(unaudited, dollars in thousands)    
         
  March 31, December 31,
   
Assets   2021   2020    
Cash and due from banks $ 182,830 $ 159,995    
Short-term interest bearing accounts   972,195   512,686    
Equity securities, at fair value   32,247   30,737    
Securities available for sale, at fair value   1,387,028   1,348,698    
Securities held to maturity (fair value $600,176 and $636,827, respectively)   592,999   616,560    
Federal Reserve and Federal Home Loan Bank stock   25,127   27,353    
Loans held for sale   1,295   1,119    
Loans   7,633,459   7,498,885    
Less allowance for loan losses   105,000   110,000    
Net loans $ 7,528,459 $ 7,388,885    
Premises and equipment, net   72,705   74,206    
Goodwill   280,541   280,541    
Intangible assets, net   10,923   11,735    
Bank owned life insurance   187,458   186,434    
Other assets   263,446   293,957    
Total assets $ 11,537,253 $ 10,932,906    
         
Liabilities and stockholders' equity        
Demand (noninterest bearing) $ 3,495,622 $ 3,241,123    
Savings, NOW and money market   5,715,935   5,207,090    
Time   604,373   633,479    
Total deposits $ 9,815,930 $ 9,081,692    
Short-term borrowings   95,339   168,386    
Long-term debt   14,069   39,097    
Subordinated debt, net   98,162   98,052    
Junior subordinated debt   101,196   101,196    
Other liabilities   221,576   256,865    
Total liabilities $ 10,346,272 $ 9,745,288    
         
Total stockholders' equity $ 1,190,981 $ 1,187,618    
         
Total liabilities and stockholders' equity $ 11,537,253 $ 10,932,906    
         



NBT Bancorp Inc. and Subsidiaries  
Quarterly Consolidated Statements of Income  
(unaudited, dollars in thousands except per share data)  
             
    2021     2020    
  1st Q 4th Q 3rd Q 2nd Q 1st Q  
Interest, fee and dividend income            
Interest and fees on loans $ 75,093   $ 76,863   $ 74,998 $ 77,270 $ 78,728    
Securities available for sale   5,544     5,478     5,603   5,600   5,753    
Securities held to maturity   3,382     3,532     3,734   3,926   4,091    
Other   291     568     659   650   829    
Total interest, fee and dividend income $ 84,310   $ 86,441   $ 84,994 $ 87,446 $ 89,401    
Interest expense            
Deposits $ 3,172   $ 3,887   $ 4,267 $ 4,812 $ 9,104    
Short-term borrowings   70     193     446   972   1,797    
Long-term debt   124     369     398   393   393    
Subordinated debt   1,359     1,339     1,375   128   -    
Junior subordinated debt   530     545     565   695   926    
Total interest expense $ 5,255   $ 6,333   $ 7,051 $ 7,000 $ 12,220    
Net interest income $ 79,055   $ 80,108   $ 77,943 $ 80,446 $ 77,181    
Provision for loan losses   (2,796 )   (607 )   3,261   18,840   29,640    
Net interest income after provision for loan losses $ 81,851   $ 80,715   $ 74,682 $ 61,606 $ 47,541    
Noninterest income            
Service charges on deposit accounts $ 3,027   $ 3,588   $ 3,087 $ 2,529 $ 3,997    
ATM and debit card fees   6,862     6,776     7,194   6,136   5,854    
Retirement plan administration fees   10,098     9,011     9,685   9,214   7,941    
Wealth management   7,910     7,456     7,695   6,823   7,273    
Insurance   3,461     3,454     3,742   3,292   4,269    
Bank owned life insurance income   1,381     1,733     1,255   1,381   1,374    
Net securities gains (losses)   467     160     84   180   (812 )  
Other   3,832     5,937     4,985   5,456   5,527    
Total noninterest income $ 37,038   $ 38,115   $ 37,727 $ 35,011 $ 35,423    
Noninterest expense            
Salaries and employee benefits $ 41,601   $ 41,016   $ 40,451 $ 39,717 $ 40,750    
Occupancy   5,873     5,280     5,294   5,065   5,995    
Data processing and communications   4,731     4,157     4,058   4,079   4,233    
Professional fees and outside services   3,589     4,388     3,394   3,403   3,897    
Equipment   5,177     5,395     5,073   4,779   4,642    
Office supplies and postage   1,499     1,517     1,530   1,455   1,636    
FDIC expense   808     739     645   993   311    
Advertising   451     827     530   322   609    
Amortization of intangible assets   812     822     856   883   834    
Loan collection and other real estate owned, net   590     930     620   728   1,017    
Other   2,757     10,133     3,857   3,916   6,957    
Total noninterest expense $ 67,888   $ 75,204   $ 66,308 $ 65,340 $ 70,881    
Income before income tax expense $ 51,001   $ 43,626   $ 46,101 $ 31,277 $ 12,083    
Income tax expense   11,155     9,432     10,988   6,564   1,715    
   Net income $ 39,846   $ 34,194   $ 35,113 $ 24,713 $ 10,368    
Earnings Per Share            
Basic $ 0.91   $ 0.78   $ 0.80 $ 0.57 $ 0.24    
Diluted $ 0.91   $ 0.78   $ 0.80 $ 0.56 $ 0.23    
             



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 - 2021 Q4 - 2020 Q3 - 2020 Q2 - 2020 Q1 - 2020  
Assets                        
Short-term interest bearing accounts   $ 587,358 0.09 % $ 552,529 0.11 % $ 477,946 0.11 % $ 380,260 0.10 % $ 74,695 1.28 %  
Securities available for sale1 4     1,346,380 1.67 %   1,230,411 1.77 %   1,137,604 1.96 %   985,561 2.29 %   962,527 2.40 %  
Securities held to maturity1 4     607,407 2.43 %   640,422 2.36 %   621,812 2.56 %   613,899 2.75 %   622,398 2.81 %  
Investment in FRB and FHLB Banks     25,606 2.45 %   28,275 5.94 %   29,720 7.08 %   36,604 6.09 %   39,784 5.97 %  
Loans1 5     7,574,337 4.02 %   7,533,953 4.06 %   7,559,218 3.95 %   7,589,032 4.10 %   7,163,114 4.42 %  
Total interest earning assets   $ 10,141,088 3.38 % $ 9,985,590 3.46 % $ 9,826,300 3.45 % $ 9,605,356 3.68 % $ 8,862,518 4.07 %  
Other assets     960,994     954,123     967,194     961,807     885,570    
Total assets   $ 11,102,082   $ 10,939,713   $ 10,793,494     $ 10,567,163     $ 9,748,088    
                         
Liabilities and stockholders' equity                    
Money market deposit accounts   $ 2,484,120 0.23 % $ 2,455,510 0.27 % $ 2,364,606 0.28 % $ 2,360,407 0.29 % $ 2,101,306 1.00 %  
NOW deposit accounts     1,358,955 0.05 %   1,315,370 0.05 %   1,207,064 0.05 %   1,167,486 0.04 %   1,086,205 0.10 %  
Savings deposits     1,547,983 0.05 %   1,465,562 0.05 %   1,447,021 0.05 %   1,383,495 0.05 %   1,276,285 0.06 %  
Time deposits     615,343 0.93 %   645,288 1.15 %   684,708 1.31 %   760,803 1.48 %   842,989 1.62 %  
Total interest bearing deposits   $ 6,006,401 0.21 % $ 5,881,730 0.26 % $ 5,703,399 0.30 % $ 5,672,191 0.34 % $ 5,306,785 0.69 %  
Short-term borrowings     115,182 0.25 %   175,597 0.44 %   277,890 0.64 %   427,004 0.92 %   533,516 1.35 %  
Long-term debt     19,913 2.53 %   59,488 2.47 %   64,137 2.47 %   64,165 2.46 %   64,194 2.46 %  
Subordinated debt, net     98,095 5.62 %   97,984 5.44 %   97,934 5.59 %   8,633 5.96 %   - -    
Junior subordinated debt     101,196 2.12 %   101,196 2.14 %   101,196 2.22 %   101,196 2.76 %   101,196 3.68 %  
Total interest bearing liabilities   $ 6,340,787 0.34 % $ 6,315,995 0.40 % $ 6,244,556 0.45 % $ 6,273,189 0.45 % $ 6,005,691 0.82 %  
Demand deposits     3,319,024     3,178,410     3,111,617     2,887,545     2,398,307    
Other liabilities     250,991     271,206     282,265     271,635     214,495    
Stockholders' equity     1,191,280     1,174,102     1,155,056     1,134,794     1,129,595    
Total liabilities and stockholders' equity   $ 11,102,082   $ 10,939,713   $ 10,793,494     $ 10,567,163     $ 9,748,088    
                         
Interest rate spread     3.04 %   3.06 %   3.00 %   3.23 %   3.25 %  
Net interest margin (FTE)1     3.17 %   3.20 %   3.17 %   3.38 %   3.52 %  
                         



NBT Bancorp Inc. and Subsidiaries  
Consolidated Loan Balances  
(unaudited, dollars in thousands)  
             
The following table presents loans by line of business, paycheck protection program loans includes $14.2 million, $6.9 million, $11.3 million and $14.6 million in unamortized fees as of March 31, 2021 December 31, 2020 September 30, 2020 and June 30, 2020, respectively.  
 
 
             
    2021     2020    
  1st Q 4th Q 3rd Q 2nd Q 1st Q  
Commercial $ 1,271,319   $ 1,267,679   $ 1,297,408   $ 1,318,806   $ 1,338,609    
Commercial real estate   2,437,811     2,380,358     2,281,843     2,256,580     2,242,139    
Paycheck protection program   536,494     430,810     514,558     510,097     -    
Residential real estate mortgages   1,478,216     1,466,662     1,448,530     1,460,058     1,446,676    
Indirect auto   913,083     931,286     989,369     1,091,889     1,184,888    
Specialty lending   577,509     579,644     566,973     515,618     539,378    
Home equity   369,633     387,974     404,346     415,528     431,536    
Other consumer   49,394     54,472     57,616     59,415     64,157    
  Total loans $ 7,633,459   $ 7,498,885   $ 7,560,643   $ 7,627,991   $ 7,247,383    
             
The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of March 31, 2021 excluding PPP loans:  
 
             
Industry % of Total Loans          
Accommodations   2.4 %          
Healthcare services and practices   2.2 %          
Restaurants and entertainment   1.8 %          
Retailers   1.7 %          
Automotive   1.4 %          
Total   9.5 %          
             
Allowance for Loan Losses as a Percentage of Loans by Segment:      
             
    2020     2021    
  1st Q 2nd Q 3rd Q 4th Q 1st Q  
Commercial & industrial   1.43 %   1.25 %   1.34 %   1.34 %   1.20 %  
Commercial real estate   1.10 %   1.56 %   1.57 %   1.49 %   1.48 %  
Paycheck protection program   0.00 %   0.01 %   0.01 %   0.01 %   0.01 %  
Residential real estate   0.99 %   1.13 %   1.21 %   1.07 %   1.03 %  
Auto   1.08 %   0.99 %   0.92 %   0.93 %   0.78 %  
Other consumer   4.00 %   5.01 %   4.66 %   4.55 %   4.34 %  
Total   1.38 %   1.49 %   1.51 %   1.47 %   1.38 %  
             
Total excluding PPP loans   1.38 %   1.59 %   1.62 %   1.56 %   1.48 %  
             



               
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)            
               
  Pre-provision net revenue ("PPNR")   2021     2020    
    1st Q 4th Q 3rd Q 2nd Q 1st Q  
  Income before income tax expense $ 51,001   $ 43,626   $ 46,101   $ 31,277   $ 12,083    
  FTE adjustment   302     318     325     329     329    
  Provision for loan losses   (2,796 )   (607 )   3,261     18,840     29,640    
  Net securities (gains) losses   (467 )   (160 )   (84 )   (180 )   812    
  Nonrecurring expense   -     4,100     -     650     -    
  Unfunded loan commitments reserve   (500 )   900     -     (200 )   2,000    
  PPNR $ 47,540   $ 48,177   $ 49,603   $ 50,716   $ 44,864    
               
  Average Assets $ 11,102,082   $ 10,939,713   $ 10,793,494   $ 10,567,163   $ 9,748,088    
               
  Return on Average Assets3   1.46 %   1.24 %   1.29 %   0.94 %   0.43 %  
  PPNR Return on Average Assets3   1.74 %   1.75 %   1.83 %   1.93 %   1.85 %  
               
  PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic, net securities gains (losses) and non-recurring income and/or expense.  
   
   
               
  FTE Adjustment   2021     2020    
    1st Q 4th Q 3rd Q 2nd Q 1st Q  
  Net interest income $ 79,055   $ 80,108   $ 77,943   $ 80,446   $ 77,181    
  Add: FTE adjustment   302     318     325     329     329    
  Net interest income (FTE) $ 79,357   $ 80,426   $ 78,268   $ 80,775   $ 77,510    
  Average earning assets $ 10,141,088   $ 9,985,590   $ 9,826,300   $ 9,605,356   $ 8,862,518    
  Net interest margin (FTE)3   3.17 %   3.20 %   3.17 %   3.38 %   3.52 %  
               
  Interest income for tax-exempt securities and loans have been adjusted to a 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              
  (unaudited, dollars in thousands)              
                 
  Tangible equity to tangible assets   2021     2020      
    1st Q 4th Q 3rd Q 2nd Q 1st Q    
  Total equity $ 1,190,981   $ 1,187,618   $ 1,166,111   $ 1,142,652   $ 1,112,179      
  Intangible assets   291,464     292,276     293,098     293,954     285,955      
  Total assets $ 11,537,253   $ 10,932,906   $ 10,850,212   $ 10,847,184   $ 9,953,543      
  Tangible equity to tangible assets   8.00 %   8.41 %   8.27 %   8.04 %   8.55 %    
                 
  Return on average tangible common equity   2021     2020      
    1st Q 4th Q 3rd Q 2nd Q 1st Q    
  Net income $ 39,846   $ 34,194   $ 35,113   $ 24,713   $ 10,368      
  Amortization of intangible assets (net of tax)   609     617     642     662     626      
  Net income, excluding intangibles amortization $ 40,455   $ 34,811   $ 35,755   $ 25,375   $ 10,994      
                 
  Average stockholders' equity $ 1,191,280   $ 1,174,102   $ 1,155,056   $ 1,134,794   $ 1,129,595      
  Less: average goodwill and other intangibles   291,921     292,725     293,572     294,423     286,400      
  Average tangible common equity $ 899,359   $ 881,377   $ 861,484   $ 840,371   $ 843,195      
  Return on average tangible common equity3   18.24 %   15.71 %   16.51 %   12.14 %   5.24 %    
                 
2 Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.    
3 Annualized.              
4 Securities are shown at average amortized cost.            
5 For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.  
                 



NBT Bancorp Inc.

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