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NBT Bancorp Inc. Announces Net Income of $154.9 Million ($3.54 per Diluted Common Share); Approves Dividend

01/26/22

NORWICH, N.Y., Jan. 26, 2022 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the quarter and year ended December 31, 2021.

Net income for the year ended December 31, 2021 was $154.9 million, up 48.4% from $104.4 million for the prior year primarily due to changes in the estimated impact of the COVID-19 pandemic on expected credit losses. Diluted earnings per share for the year ended December 31, 2021 was $3.54, as compared with $2.37 for the prior year, an increase of 49.4%.

Pre-provision net revenue (“PPNR”)1 for the year ended December 31, 2021 was $195.3 million compared to $193.4 million in the prior year. The increase in PPNR from the prior year reflected higher net interest income and higher noninterest income partly offset by higher noninterest expense. Income from Paycheck Protection Program (“PPP”) loans increased $7.1 million from the prior year.

Net income for the three months ended December 31, 2021 was $37.3 million, or $0.86 per diluted common share. Net income increased $3.1 million from the fourth quarter of 2020, primarily due to higher net interest income and higher noninterest income, partly offset by higher provision for loan losses. The fourth quarter 2021 provision for loan losses was $3.1 million compared to the fourth quarter 2020 provision release of $0.6 million. Quarterly net income was consistent with the previous quarter and reflected improved revenue generation offset by a higher provision for loan losses and higher noninterest expense.

PPNR1 for the fourth quarter of 2021 was $51.5 million compared to $47.4 million in the previous quarter and $48.2 million in the fourth quarter of 2020. Income from PPP loans increased $4.7 million and $1.9 million from the previous quarter and the fourth quarter of 2020, respectively.

CEO Comments

“Our fourth quarter and full-year results for 2021 reflect the hard work of our team, and our strong finish is the culmination of a record year,” said NBT President and CEO John H. Watt, Jr. “Our fee-based businesses achieved new levels of success year over year, and we saw digital adoption continue to soar across our consumer and commercial platforms, including a 64% increase in consumer digital adoption. NBT has a strong and growing capital base, which provides us with optionality that will enable our dedicated and talented team to be successful in 2022. I am excited to welcome Heidi Hoeller as our newest director. With over 25 years of experience in public accounting and financial services, we look forward to adding her valuable perspective to our strategic thinking.”

Fourth Quarter Financial Highlights

Net Income
  • Net income of $37.3 million
  • Diluted earnings per share of $0.86
Net Interest Income / NIM
  • Net interest income on a fully taxable equivalent basis was $85.5 million1
  • Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.08%1, up 20 basis points (“bps”) from the prior quarter
  • Total cost of deposits of 0.08%
PPNR
  • PPNR1 was $51.5 million compared to $47.4 million in the third quarter of 2021 and $48.2 million in the fourth quarter of 2020
Loans and Credit Quality
  • Period end total loans were $7.5 billion at December 31, 2021
  • Excluding $101 million and $431 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, period end loans increased $329 million or 5% from December 31, 2020
  • Allowance for loan losses to total loans of 1.23% (1.24% excluding PPP loans), was consistent with the third quarter 2021 (down 4 bps excluding PPP loans)
  • Net charge-offs to average loans were 0.22%, annualized (0.22% excluding PPP loans)
  • Nonperforming loans to total loans were 0.44% (0.44% excluding PPP loans), down from 0.51% (0.53% excluding PPP loans) in the prior quarter
Capital
  • Tangible book value per share2 grew 1% for the quarter and 8% from prior year to $22.26 at December 31, 2021
  • Tangible equity to assets of 8.20%1
  • CET1 ratio of 12.25%; Leverage ratio of 9.41%

Loans

  • Period end total loans were $7.5 billion at December 31, 2021 and December 31, 2020.
  • Excluding PPP loans, period end loans increased $329 million from December 31, 2020. Commercial and industrial loans increased $37.9 million to $1.5 billion; commercial real estate loans increased $124.7 million to $2.3 billion; and total consumer loans increased $166.6 million to $3.6 billion.
  • Total PPP loans as of December 31, 2021 were $101 million (net of unamortized fees). The following PPP loan activity occurred during the fourth quarter of 2021:
    • $182.6 million of loans forgiven
    • $7.5 million of interest and fees recognized into interest income, compared to $2.9 million for the third quarter of 2021
  • Commercial line of credit utilization rate was 21% at December 31, 2021 compared to 21% at September 30, 2021 and 22% at December 31, 2020.

Deposits

  • Average total deposits in the fourth quarter of 2021 were $10.2 billion, compared to $10.0 billion in the third quarter of 2021, driven by increases in checking and money market deposit accounts.
  • Loan to deposit ratio was 73.3% at December 31, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

  • Net interest income for the fourth quarter of 2021 was $85.2 million, which was up $7.5 million or 9.7% from the third quarter of 2021 and up $5.1 million or 6.3% from the fourth quarter of 2020. PPP income of $7.5 million was $4.7 million higher in the fourth quarter of 2021 compared to the prior quarter.
  • The NIM on a fully taxable equivalent (“FTE”) basis for the fourth quarter of 2021 was 3.08%, up 20 bps from the third quarter of 2021 and down 12 bps from the fourth quarter of 2020. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM increased 5 bps from the prior quarter primarily due to a 3 bp increase in earning asset yields and a 2 bp decline in the cost of interest-bearing liabilities. The net impact of income from PPP loans and excess liquidity negatively impacted the NIM by 11 bps in the fourth quarter of 2021 compared to a negative 26 bps impact in the third quarter of 2021.
  • Earning asset yields for the three months ended December 31, 2021 were up 18 bps from the prior quarter and down 23 bps from the same quarter in the prior year. Earning assets grew $289.7 million or 2.7% from the prior quarter and grew $1.0 billion or 10.3% from the same quarter in the prior year. The following are highlights comparing the fourth quarter of 2021 to the prior quarter:
    • Excess liquidity resulted in a $131.7 million increase in the average balances of short-term interest-bearing accounts with a yield of 0.16%.
    • The average balance of investment securities increased $168.7 million while yields declined 7 bps.
    • Loan yields increased 36 bps to 4.20% for the quarter. Excluding PPP loans, yields increased 3 bps from the prior quarter.
  • Total cost of deposits was 0.08% for the fourth quarter of 2021, down 2 bps from the prior quarter and down 9 bps from the same period in the prior year.
  • The cost of interest-bearing liabilities for the three months ended December 31, 2021 was 0.24%, down 3 bps compared to the prior quarter of 0.27% and down 16 bps from the fourth quarter of 2020 of 0.40%.

Credit Quality and Allowance for Credit Losses

  • Net charge-offs to total average loans of 22 bps compared to 11 bps (12 bps excluding PPP loans) in the prior quarter and 21 bps (22 bps excluding PPP loans) in the fourth quarter of 2020.
  • Nonperforming assets to total assets was 0.27% (0.28% excluding PPP loans) compared to 0.33% (0.34% excluding PPP loans) at September 30, 2021 and 0.45% (0.47% excluding PPP loans) at December 31, 2020.
  • Provision expense for the three months ended December 31, 2021 was $3.1 million with net charge-offs of $4.1 million. Provision expense was $6.4 million higher than the third quarter of 2021 and $3.7 million higher than fourth quarter of 2020. The increase in provision expense from the prior quarter and the fourth quarter of 2020 was driven by changes in the economic forecast, loan growth and the resultant required level of allowance for loan losses.
  • The allowance for loan losses was $92.0 million or 1.23% (1.24% excluding PPP loans and related allowance) of total loans at December 31, 2021, compared to 1.23% (1.28% excluding PPP loans and related allowance) of total loans at September 30, 2021 and 1.47% (1.56% excluding PPP loans and related allowance) of total loans 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 partly offset by the increase in loan balances.
  • The reserve for unfunded loan commitments decreased to $5.1 million at December 31, 2021 compared to the prior quarter at $5.3 million.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $41.1 million for the three months ended December 31, 2021, up $0.7 million from the prior quarter and up $3.2 million from the prior year quarter.
  • Service charges on deposit accounts were higher than the prior quarter and the fourth quarter of 2020 but still below pre-pandemic levels.
  • ATM and debit card fees were comparable to the prior quarter and higher than the fourth quarter of 2020 due to increased volume and modestly higher per transaction rates.
  • Retirement plan administration fees were higher than the prior quarter and higher than the fourth quarter of 2020 driven by market performance and organic growth in relationships.
  • Wealth management fees were comparable to the prior quarter and higher than the fourth quarter of 2020 aided by market performance and additional new customers.
  • Other noninterest income decreased from the prior quarter and the fourth quarter of 2020 due principally to lower swap fee income.

Noninterest Expense

  • Total noninterest expense for the fourth quarter of 2021 was up 3.1% from the previous quarter and comparable to the fourth quarter of 2020.
  • Salaries and benefits were consistent with the prior quarter and up $3.1 million from the fourth quarter of 2020 due to increased salaries and wages and higher levels of incentive compensation.
  • Occupancy expense increased from the prior quarter and the fourth quarter of 2020 driven by seasonally higher repair and maintenance costs.
  • Professional fees and outside services expense were higher than the prior quarter and the fourth quarter of 2020 due to higher costs associated with several digital and other technology-related initiatives.
  • Advertising and marketing expenses were higher than the prior quarter and the fourth quarter of 2020 due to timing of refreshed collateral and messaging materials.
  • Other expenses decreased from the prior quarter and the fourth quarter of 2020. The decrease from the prior year was primarily due to a $4.1 million expense in 2020 for branch optimization charges.

Income Taxes

  • The effective tax rate was 22.4% for the fourth quarter of 2021 compared to 22.8% for the third quarter of 2021 and 21.6% for the fourth quarter of 2020. The higher effective tax rate compared to the fourth quarter of 2020 was due to the change in the level of taxable income to bring the full year effective tax rate to 22.5%.

Capital

  • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.20%. Tangible book value per share2 grew 1% from the prior quarter and 8% from the prior year quarter to $22.26.
  • December 31, 2021, CET1 capital ratio of 12.25%, leverage ratio of 9.41% and total risk-based capital ratio of 15.73%.

Dividend and Stock Repurchase

  • The Board of Directors approved a first-quarter cash dividend of $0.28 per share at a meeting held today. The dividend will be paid on March 15, 2022 to shareholders of record as of March 1, 2022. The cash dividend is $0.01 or 3.7% higher than the dividend paid in the first quarter of 2021. The $0.28 cash dividend has an effective yield of 2.85% as of the market close on January 21, 2022.
  • The Company purchased 204,637 shares of common stock during the fourth quarter of 2021 at a weighted average price of $37.29 excluding commissions. The repurchase program under which these shares were purchased expired on December 31, 2021.
  • On December 20, 2021, the Board of Directors authorized a repurchase program for NBT to repurchase up to 2,000,000 shares of its outstanding common stock. This plan expires on December 31, 2023.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Thursday, January 27, 2022, to review fourth 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 $12.0 billion at December 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 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service retirement plan administration and 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 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, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, including the Delta and Omicron variants, the impact of the COVID-19 pandemic 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
Scott A. Kingsley, 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  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Profitability:          
Diluted earnings per share $ 0.86   $ 0.86   $ 0.92   $ 0.91   $ 0.78  
Weighted average diluted common shares outstanding   43,574,539     43,631,497     43,792,940     43,889,889     43,973,971  
Return on average assets3   1.23 %   1.26 %   1.39 %   1.46 %   1.24 %
Return on average equity3   11.89 %   12.04 %   13.42 %   13.57 %   11.59 %
Return on average tangible common equity1 3   15.70 %   15.97 %   17.93 %   18.24 %   15.71 %
Net interest margin1 3   3.08 %   2.88 %   3.00 %   3.17 %   3.20 %
           
  12 Months Ended December 31,      
    2021     2020        
Profitability:          
Diluted earnings per share $ 3.54   $ 2.37        
Weighted average diluted common shares outstanding   43,718,804     43,988,623        
Return on average assets   1.33 %   0.99 %      
Return on average equity   12.71 %   9.09 %      
Return on average tangible common equity1   16.92 %   12.48 %      
Net interest margin1   3.03 %   3.31 %      
           
    2021     2020  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Balance sheet data:          
Short-term interest-bearing accounts $ 1,111,296   $ 1,131,074   $ 883,758   $ 972,195   $ 512,686  
Securities available for sale   1,687,361     1,576,030     1,534,733     1,387,028     1,348,698  
Securities held to maturity   733,210     683,103     622,351     592,999     616,560  
Net loans   7,406,459     7,473,442     7,419,127     7,528,459     7,388,885  
Total assets   12,012,111     11,994,411     11,574,947     11,537,253     10,932,906  
Total deposits   10,234,469     10,195,178     9,785,257     9,815,930     9,081,692  
Total borrowings   311,476     313,311     304,110     308,766     406,731  
Total liabilities   10,761,658     10,752,954     10,349,891     10,346,272     9,745,288  
Stockholders' equity   1,250,453     1,241,457     1,225,056     1,190,981     1,187,618  
           
Capital:          
Equity to assets   10.41 %   10.35 %   10.58 %   10.32 %   10.86 %
Tangible equity ratio1   8.20 %   8.13 %   8.28 %   8.00 %   8.41 %
Book value per share $ 28.97   $ 28.65   $ 28.19   $ 27.43   $ 27.22  
Tangible book value per share2 $ 22.26   $ 21.95   $ 21.50   $ 20.71   $ 20.52  
Leverage ratio   9.41 %   9.47 %   9.40 %   9.60 %   9.56 %
Common equity tier 1 capital ratio   12.25 %   12.20 %   12.12 %   12.13 %   11.84 %
Tier 1 capital ratio   13.43 %   13.39 %   13.34 %   13.38 %   13.09 %
Total risk-based capital ratio   15.73 %   15.74 %   15.78 %   15.92 %   15.62 %
Common stock price (end of period) $ 38.52   $ 36.12   $ 35.97   $ 39.90   $ 32.10  
 


NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)
           
    2021     2020  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Asset quality:          
Nonaccrual loans $ 30,285   $ 35,737   $ 40,550   $ 43,399   $ 44,647  
90 days past due and still accruing   2,458     2,940     2,575     2,155     3,149  
Total nonperforming loans   32,743     38,677     43,125     45,554     47,796  
Other real estate owned   167     859     798     1,318     1,458  
Total nonperforming assets   32,910     39,536     43,923     46,872     49,254  
Allowance for loan losses   92,000     93,000     98,500     105,000     110,000  
           
Asset quality ratios (total):          
Allowance for loan losses to total loans   1.23 %   1.23 %   1.31 %   1.38 %   1.47 %
Total nonperforming loans to total loans   0.44 %   0.51 %   0.57 %   0.60 %   0.64 %
Total nonperforming assets to total assets   0.27 %   0.33 %   0.38 %   0.41 %   0.45 %
Allowance for loan losses to total nonperforming loans   280.98 %   240.45 %   228.41 %   230.50 %   230.14 %
Past due loans to total loans4   0.29 %   0.46 %   0.26 %   0.22 %   0.37 %
Net charge-offs to average loans3   0.22 %   0.11 %   0.07 %   0.12 %   0.21 %
           
Asset quality ratios (excluding paycheck protection program):
Allowance for loan losses to total loans   1.24 %   1.28 %   1.38 %   1.48 %   1.56 %
Total nonperforming loans to total loans   0.44 %   0.53 %   0.60 %   0.64 %   0.68 %
Total nonperforming assets to total assets   0.28 %   0.34 %   0.39 %   0.43 %   0.47 %
Allowance for loan losses to total nonperforming loans   280.96 %   240.42 %   228.36 %   230.44 %   230.10 %
Past due loans to total loans4   0.29 %   0.48 %   0.27 %   0.23 %   0.39 %
Net charge-offs to average loans3   0.22 %   0.12 %   0.07 %   0.13 %   0.22 %
           
    2021     2020  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
 
Allowance for loan losses as a percentage of loans by segment:
Commercial & industrial   0.78 %   0.83 %   1.11 %   1.20 %   1.34 %
Commercial real estate   0.78 %   0.93 %   1.26 %   1.48 %   1.49 %
Paycheck protection program   0.01 %   0.01 %   0.01 %   0.01 %   0.01 %
Residential real estate   0.92 %   0.93 %   0.98 %   1.03 %   1.07 %
Auto   0.79 %   0.78 %   0.76 %   0.78 %   0.93 %
Other consumer   4.49 %   4.57 %   4.27 %   4.34 %   4.55 %
Total   1.23 %   1.23 %   1.31 %   1.38 %   1.47 %
Total excluding PPP loans   1.24 %   1.28 %   1.38 %   1.48 %   1.56 %
           
    2021     2020  
Loans by line of business: 4th Q 3rd Q 2nd Q 1st Q 4th Q
Commercial $ 1,489,414   $ 1,466,597   $ 1,479,258   $ 1,466,841   $ 1,451,560  
Commercial real estate   2,321,193     2,320,341     2,265,754     2,242,289     2,196,477  
Paycheck protection program   101,222     276,195     359,738     536,494     430,810  
Residential real estate mortgages   1,571,232     1,549,684     1,512,354     1,478,216     1,466,662  
Indirect auto   859,454     873,860     899,324     913,083     931,286  
Specialty lending   778,291     692,919     602,585     577,509     579,644  
Home equity   330,357     339,316     351,469     369,633     387,974  
Other consumer   47,296     47,530     47,145     49,394     54,472  
Total loans $ 7,498,459   $ 7,566,442   $ 7,517,627   $ 7,633,459   $ 7,498,885  
           
PPP unamortized fees (dollars in millions) $ 3.4   $ 10.5   $ 12.6   $ 14.2   $ 6.9  
           


NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, dollars in thousands)
     
  December 31, December 31,
Assets   2021     2020  
Cash and due from banks $ 157,775   $ 159,995  
Short-term interest-bearing accounts   1,111,296     512,686  
Equity securities, at fair value   33,550     30,737  
Securities available for sale, at fair value   1,687,361     1,348,698  
Securities held to maturity (fair value $735,260 and $636,827, respectively)   733,210     616,560  
Federal Reserve and Federal Home Loan Bank stock   25,098     27,353  
Loans held for sale   830     1,119  
Loans   7,498,459     7,498,885  
Less allowance for loan losses   92,000     110,000  
Net loans $ 7,406,459   $ 7,388,885  
Premises and equipment, net   72,093     74,206  
Goodwill   280,541     280,541  
Intangible assets, net   8,927     11,735  
Bank owned life insurance   228,238     186,434  
Other assets   266,733     293,957  
Total assets $ 12,012,111   $ 10,932,906  
     
Liabilities and stockholders' equity    
Demand (noninterest bearing) $ 3,689,556   $ 3,241,123  
Savings, NOW and money market   6,043,441     5,207,090  
Time   501,472     633,479  
Total deposits $ 10,234,469   $ 9,081,692  
Short-term borrowings   97,795     168,386  
Long-term debt   13,995     39,097  
Subordinated debt, net   98,490     98,052  
Junior subordinated debt   101,196     101,196  
Other liabilities   215,713     256,865  
Total liabilities $ 10,761,658   $ 9,745,288  
     
Total stockholders' equity $ 1,250,453   $ 1,187,618  
     
Total liabilities and stockholders' equity $ 12,012,111   $ 10,932,906  
     


NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
         
  Three Months Ended Twelve Months Ended
  December 31, December 31,
    2021     2020     2021     2020  
Interest, fee and dividend income        
Interest and fees on loans $ 79,470   $ 76,863   $ 302,175   $ 307,859  
Securities available for sale   6,101     5,478     23,305     22,434  
Securities held to maturity   3,097     3,532     12,551     15,283  
Other   639     568     1,845     2,706  
Total interest, fee and dividend income $ 89,307   $ 86,441   $ 339,876   $ 348,282  
Interest expense        
Deposits $ 2,132   $ 3,887   $ 10,714   $ 22,070  
Short-term borrowings   28     193     158     3,408  
Long-term debt   88     369     389     1,553  
Subordinated debt   1,360     1,339     5,437     2,842  
Junior subordinated debt   518     545     2,090     2,731  
Total interest expense $ 4,126   $ 6,333   $ 18,788   $ 32,604  
Net interest income $ 85,181   $ 80,108   $ 321,088   $ 315,678  
Provision for loan losses   3,097     (607 )   (8,257 )   51,134  
Net interest income after provision for loan losses $ 82,084   $ 80,715   $ 329,345   $ 264,544  
Noninterest income        
Service charges on deposit accounts $ 3,804   $ 3,588   $ 13,348   $ 13,201  
ATM and debit card fees   7,958     6,776     31,301     25,960  
Retirement plan administration fees   11,816     9,011     42,188     35,851  
Wealth management fees   8,619     7,456     33,718     29,247  
Insurance services   3,394     3,454     14,083     14,757  
Bank owned life insurance income   1,629     1,733     6,217     5,743  
Net securities (losses) gains   (2 )   160     566     (388 )
Other   3,893     5,937     16,373     21,905  
Total noninterest income $ 41,111   $ 38,115   $ 157,794   $ 146,276  
Noninterest expense        
Salaries and employee benefits $ 44,118   $ 41,016   $ 172,580   $ 161,934  
Occupancy   5,641     5,280     21,922     21,634  
Data processing and communications   3,950     4,157     16,989     16,527  
Professional fees and outside services   4,903     4,388     16,306     15,082  
Equipment   5,607     5,395     21,854     19,889  
Office supplies and postage   1,528     1,517     6,006     6,138  
FDIC expense   798     739     3,041     2,688  
Advertising   1,019     827     2,521     2,288  
Amortization of intangible assets   651     822     2,808     3,395  
Loan collection and other real estate owned, net   956     930     2,915     3,295  
Other   5,934     10,133     20,339     24,863  
Total noninterest expense $ 75,105   $ 75,204   $ 287,281   $ 277,733  
Income before income tax expense $ 48,090   $ 43,626   $ 199,858   $ 133,087  
Income tax expense   10,780     9,432     44,973     28,699  
Net income $ 37,310   $ 34,194   $ 154,885   $ 104,388  
Earnings Per Share        
Basic $ 0.86   $ 0.78   $ 3.57   $ 2.39  
Diluted $ 0.86   $ 0.78   $ 3.54   $ 2.37  
         


NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
           
    2021     2020  
  4th Q 3rd Q 2nd Q 1st Q 4th Q
Interest, fee and dividend income          
Interest and fees on loans $ 79,470   $ 72,817   $ 74,795   $ 75,093   $ 76,863  
Securities available for sale   6,101     5,898     5,762     5,544     5,478  
Securities held to maturity   3,097     2,976     3,096     3,382     3,532  
Other   639     524     391     291     568  
Total interest, fee and dividend income $ 89,307   $ 82,215   $ 84,044   $ 84,310   $ 86,441  
Interest expense          
Deposits $ 2,132   $ 2,548   $ 2,862   $ 3,172   $ 3,887  
Short-term borrowings   28     28     32     70     193  
Long-term debt   88     89     88     124     369  
Subordinated debt   1,360     1,359     1,359     1,359     1,339  
Junior subordinated debt   518     517     525     530     545  
Total interest expense $ 4,126   $ 4,541   $ 4,866   $ 5,255   $ 6,333  
Net interest income $ 85,181   $ 77,674   $ 79,178   $ 79,055   $ 80,108  
Provision for loan losses   3,097     (3,342 )   (5,216 )   (2,796 )   (607 )
Net interest income after provision for loan losses $ 82,084   $ 81,016   $ 84,394   $ 81,851   $ 80,715  
Noninterest income          
Service charges on deposit accounts $ 3,804   $ 3,489   $ 3,028   $ 3,027   $ 3,588  
ATM and debit card fees   7,958     8,172     8,309     6,862     6,776  
Retirement plan administration fees   11,816     10,495     9,779     10,098     9,011  
Wealth management fees   8,619     8,783     8,406     7,910     7,456  
Insurance services   3,394     3,720     3,508     3,461     3,454  
Bank owned life insurance income   1,629     1,548     1,659     1,381     1,733  
Net securities (losses) gains   (2 )   (100 )   201     467     160  
Other   3,893     4,222     4,426     3,832     5,937  
Total noninterest income $ 41,111   $ 40,329   $ 39,316   $ 37,038   $ 38,115  
Noninterest expense          
Salaries and employee benefits $ 44,118   $ 44,190   $ 42,671   $ 41,601   $ 41,016  
Occupancy   5,641     5,117     5,291     5,873     5,280  
Data processing and communications   3,950     3,881     4,427     4,731     4,157  
Professional fees and outside services   4,903     3,784     4,030     3,589     4,388  
Equipment   5,607     5,577     5,493     5,177     5,395  
Office supplies and postage   1,528     1,364     1,615     1,499     1,517  
FDIC expense   798     772     663     808     739  
Advertising   1,019     583     468     451     827  
Amortization of intangible assets   651     663     682     812     822  
Loan collection and other real estate owned, net   956     706     663     590     930  
Other   5,934     6,232     5,416     2,757     10,133  
Total noninterest expense $ 75,105   $ 72,869   $ 71,419   $ 67,888   $ 75,204  
Income before income tax expense $ 48,090   $ 48,476   $ 52,291   $ 51,001   $ 43,626  
Income tax expense   10,780     11,043     11,995     11,155     9,432  
Net income $ 37,310   $ 37,433   $ 40,296   $ 39,846   $ 34,194  
Earnings Per Share          
Basic $ 0.86   $ 0.86   $ 0.93   $ 0.91   $ 0.78  
Diluted $ 0.86   $ 0.86   $ 0.92   $ 0.91   $ 0.78  
           


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
    Q4 - 2021 Q3 - 2021 Q2 - 2021 Q1 - 2021 Q4 - 2020
Assets                      
Short-term interest-bearing accounts   $ 1,145,794 0.16 % $ 1,014,120 0.16 % $ 974,034 0.09 % $ 587,358 0.09 % $ 552,529 0.11 %
Securities available for sale1 5     1,608,128 1.51 %   1,513,071 1.55 %   1,453,068 1.59 %   1,346,380 1.67 %   1,230,411 1.77 %
Securities held to maturity1 5     730,988 1.82 %   657,314 1.95 %   604,582 2.23 %   607,407 2.43 %   640,422 2.36 %
Investment in FRB and FHLB Banks     25,149 2.74 %   25,154 1.91 %   25,115 2.67 %   25,606 2.45 %   28,275 5.94 %
Loans1 6     7,507,165 4.20 %   7,517,839 3.84 %   7,574,272 3.96 %   7,574,337 4.02 %   7,533,953 4.06 %
Total interest-earning assets   $ 11,017,224 3.23 % $ 10,727,498 3.05 % $ 10,631,071 3.18 % $ 10,141,088 3.38 % $ 9,985,590 3.46 %
Other assets     982,136     1,019,797     971,681     960,994     954,123  
Total assets   $ 11,999,360   $ 11,747,295   $ 11,602,752   $ 11,102,082   $ 10,939,713  
                       
Liabilities and stockholders' equity                        
Money market deposit accounts   $ 2,678,477 0.16 % $ 2,580,570 0.19 % $ 2,605,767 0.21 % $ 2,484,120 0.23 % $ 2,455,510 0.27 %
NOW deposit accounts     1,551,846 0.05 %   1,442,678 0.05 %   1,454,751 0.05 %   1,358,955 0.05 %   1,315,370 0.05 %
Savings deposits     1,725,004 0.05 %   1,691,539 0.05 %   1,660,722 0.05 %   1,547,983 0.05 %   1,465,562 0.05 %
Time deposits     537,875 0.46 %   565,216 0.62 %   591,147 0.75 %   615,343 0.93 %   645,288 1.15 %
Total interest-bearing deposits   $ 6,493,202 0.13 % $ 6,280,003 0.16 % $ 6,312,387 0.18 % $ 6,006,401 0.21 % $ 5,881,730 0.26 %
Short-term borrowings     97,455 0.11 %   99,703 0.11 %   95,226 0.13 %   115,182 0.25 %   175,597 0.44 %
Long-term debt     14,004 2.49 %   14,029 2.52 %   14,053 2.51 %   19,913 2.53 %   59,488 2.47 %
Subordinated debt, net     98,422 5.48 %   98,311 5.48 %   98,204 5.55 %   98,095 5.62 %   97,984 5.44 %
Junior subordinated debt     101,196 2.03 %   101,196 2.03 %   101,196 2.08 %   101,196 2.12 %   101,196 2.14 %
Total interest-bearing liabilities   $ 6,804,279 0.24 % $ 6,593,242 0.27 % $ 6,621,066 0.29 % $ 6,340,787 0.34 % $ 6,315,995 0.40 %
Demand deposits     3,719,070     3,676,883     3,542,176     3,319,024     3,178,410  
Other liabilities     231,260     244,125     235,536     250,991     271,206  
Stockholders' equity     1,244,751     1,233,045     1,203,974     1,191,280     1,174,102  
Total liabilities and stockholders' equity   $ 11,999,360   $ 11,747,295   $ 11,602,752   $ 11,102,082   $ 10,939,713  
                       
Interest rate spread     2.99 %   2.78 %   2.89 %   3.04 %   3.06 %
Net interest margin (FTE)1     3.08 %   2.88 %   3.00 %   3.17 %   3.20 %
                       


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
Twelve Months Ended December 31,     2021     2020  
Assets              
Short-term interest-bearing accounts   $ 932,086 $ 1,229 0.13 % $ 372,144 $ 610 0.16 %
Securities available for sale1 5     1,480,969   23,305 1.57 %   1,079,600   22,434 2.08 %
Securities held to maturity1 5     650,431   13,586 2.09 %   624,668   16,363 2.62 %
Investment in FRB and FHLB Banks     25,255   616 2.44 %   33,570   2,096 6.24 %
Loans1 6     7,543,149   302,331 4.01 %   7,461,795   308,080 4.13 %
Total interest-earning assets   $ 10,631,890 $ 341,067 3.21 % $ 9,571,777 $ 349,583 3.65 %
Other assets     983,809       942,274    
Total assets   $ 11,615,699     $ 10,514,051    
               
Liabilities and stockholders' equity              
Money market deposit accounts   $ 2,587,748 $ 5,117 0.20 % $ 2,320,947 $ 10,313 0.44 %
NOW deposit accounts     1,452,560   738 0.05 %   1,194,398   716 0.06 %
Savings deposits     1,656,893   829 0.05 %   1,393,436   745 0.05 %
Time deposits     577,150   4,030 0.70 %   733,073   10,296 1.40 %
Total interest-bearing deposits   $ 6,274,351 $ 10,714 0.17 % $ 5,641,854 $ 22,070 0.39 %
Short-term borrowings     101,838   158 0.16 %   352,809   3,408 0.97 %
Long-term debt     15,479   389 2.51 %   62,990   1,553 2.47 %
Subordinated debt, net     98,259   5,437 5.53 %   51,394   2,842 5.53 %
Junior subordinated debt     101,196   2,090 2.07 %   101,196   2,731 2.70 %
Total interest-bearing liabilities   $ 6,591,123 $ 18,788 0.29 % $ 6,210,243 $ 32,604 0.53 %
Demand deposits     3,565,693       2,895,341    
Other liabilities     240,434       259,992    
Stockholders' equity     1,218,449       1,148,475    
Total liabilities and stockholders' equity   $ 11,615,699     $ 10,514,051    
Net interest income (FTE)1     $ 322,279     $ 316,979  
Interest rate spread       2.92 %     3.12 %
Net interest margin (FTE)1       3.03 %     3.31 %
Taxable equivalent adjustment     $ 1,191     $ 1,301  
Net interest income     $ 321,088     $ 315,678  
               


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  
    4th Q 3rd Q 2nd Q 1st Q 4th Q
  Net income   37,310     37,433     40,296     39,846     34,194  
  Income tax expense   10,780     11,043     11,995     11,155     9,432  
  Provision for loan losses   3,097     (3,342 )   (5,216 )   (2,796 )   (607 )
  FTE adjustment   292     298     299     302     318  
  Net securities losses (gains)   2     100     (201 )   (467 )   (160 )
  Provision for unfunded loan commitments reserve   (250 )   (470 )   (80 )   (500 )   900  
  Nonrecurring expense   250     2,288     1,880     -     4,100  
  PPNR $ 51,481   $ 47,350   $ 48,973   $ 47,540   $ 48,177  
             
  Average Assets $ 11,999,360   $ 11,747,295   $ 11,602,757   $ 11,102,082   $ 10,939,713  
             
  Return on Average Assets3   1.23 %   1.26 %   1.39 %   1.46 %   1.24 %
  PPNR Return on Average Assets3   1.70 %   1.60 %   1.69 %   1.74 %   1.75 %
             
    12 Months Ended December 31,      
      2021     2020        
  Net income $ 154,885   $ 104,388        
  Income tax expense   44,973     28,699        
  Provision for loan losses   (8,257 )   51,134        
  FTE adjustment   1,191     1,301        
  Net securities (gains) losses   (566 )   388        
  Provision for unfunded loan commitments reserve   (1,300 )   2,700        
  Nonrecurring expense   4,418     4,750        
  PPNR $ 195,344   $ 193,360        
             
  Average Assets $ 11,615,699   $ 10,514,051        
             
  Return on Average Assets   1.33 %   0.99 %      
  PPNR Return on Average Assets   1.68 %   1.84 %      
             
  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 the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense.
             
  FTE Adjustment   2021     2020  
    4th Q 3rd Q 2nd Q 1st Q 4th Q
  Net interest income $ 85,181   $ 77,674   $ 79,178   $ 79,055   $ 80,108  
  Add: FTE adjustment   292     298     299     302     318  
  Net interest income (FTE) $ 85,473   $ 77,972   $ 79,477   $ 79,357   $ 80,426  
  Average earning assets $ 11,017,224   $ 10,727,498   $ 10,631,071   $ 10,141,088   $ 9,985,590  
  Net interest margin (FTE)3   3.08 %   2.88 %   3.00 %   3.17 %   3.20 %
             
    12 Months Ended December 31,      
      2021     2020        
  Net interest income $ 321,088   $ 315,678        
  Add: FTE adjustment   1,191     1,301        
  Net interest income (FTE) $ 322,279   $ 316,979        
  Average earning assets $ 10,631,890   $ 9,571,777        
  Net interest margin (FTE)   3.03 %   3.31 %      
             
  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  
    4th Q 3rd Q 2nd Q 1st Q 4th Q
  Total equity $ 1,250,453   $ 1,241,457   $ 1,225,056   $ 1,190,981   $ 1,187,618  
  Intangible assets   289,468     290,119     290,782     291,464     292,276  
  Total assets $ 12,012,111   $ 11,994,411   $ 11,574,947   $ 11,537,253   $ 10,932,906  
  Tangible equity to tangible assets   8.20 %   8.13 %   8.28 %   8.00 %   8.41 %
             
  Return on average tangible common equity   2021     2020  
    4th Q 3rd Q 2nd Q 1st Q 4th Q
  Net income $ 37,310   $ 37,433   $ 40,296   $ 39,846   $ 34,194  
  Amortization of intangible assets (net of tax)   488     497     512     609     617  
  Net income, excluding intangibles amortization $ 37,798   $ 37,930   $ 40,808   $ 40,455   $ 34,811  
             
  Average stockholders' equity $ 1,244,751   $ 1,233,045   $ 1,203,974   $ 1,191,280   $ 1,174,102  
  Less: average goodwill and other intangibles   289,834     290,492     291,133     291,921     292,725  
  Average tangible common equity $ 954,917   $ 942,553   $ 912,841   $ 899,359   $ 881,377  
  Return on average tangible common equity3   15.70 %   15.97 %   17.93 %   18.24 %   15.71 %
             
    12 Months Ended December 31,      
      2021     2020        
  Net income $ 154,885   $ 104,388        
  Amortization of intangible assets (net of tax)   2,106     2,546        
  Net income, excluding intangibles amortization $ 156,991   $ 106,934        
             
  Average stockholders' equity $ 1,218,449   $ 1,148,475        
  Less: average goodwill and other intangibles   290,838     291,787        
  Average tangible common equity $ 927,611   $ 856,688        
  Return on average tangible common equity   16.92 %   12.48 %      
             
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.
             

 


NBT Bancorp Inc.

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