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NBT Bancorp Inc. Announces Net Income of $30.6 Million and Diluted Earnings Per Share of $0.69

07/22/19

NORWICH, N.Y., July 22, 2019 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for both the three and six months ended June 30, 2019.

Net income for the three months ended June 30, 2019 was $30.6 million, up 4.9% from $29.1 million for the first quarter of 2019 and up 8.7% from $28.1 million for the second quarter of 2018. Diluted earnings per share for the three months ended June 30, 2019 was $0.69, as compared with $0.66 for the prior quarter, an increase of 4.5%, and $0.64 for the second quarter of 2018, an increase of 7.8%.

Net income for the six months ended June 30, 2019 was $59.7 million, up 10.3% from $54.1 million for the same period last year. Diluted earnings per share for the six months ended June 30, 2019 was $1.35, as compared with $1.23 for the same period in 2018, an increase of 9.8%.

Highlights:

  • Quarterly diluted earnings per share up 4.5% from prior quarter and up 7.8% from prior year
  • Quarter-to-date net income up 4.9% from prior quarter and up 8.7% from prior year
  • FTE net interest margin of 3.63% for the six months ended June 30, 2019, up 6 bps from 2018
  • Full cycle deposit beta of 14.7% through the quarter ending June 30, 20191
  • Tangible equity ratio of 8.41%, up 93 bps from the second quarter of 2018

“For the first six months of 2019, we achieved double-digit year-over-year growth with earnings per share and net income up 10% over the same period in 2018,” said NBT President and CEO John H. Watt, Jr. “Positive trends in net interest income and tangible capital growth demonstrate we are effectively managing our business and growing earnings while investing in our long-term strategies. Our team remains focused on building shareholder value by delivering a great customer experience. Relentless focus on process improvement and digitization will permit reinvestment of the productivity gains created into the customer experience.”

Net interest income was $78.6 million for the second quarter of 2019, up $0.9 million, or 1.2%, from the previous quarter. The fully taxable equivalent (“FTE”) net interest margin was 3.61% for the three months ended June 30, 2019, down 3 basis points (“bps”) from the previous quarter, as higher funding costs on average interest-bearing liabilities were partially offset by higher average interest-earning assets. Interest income increased $1.9 million, or 2.1%, as the yield on average interest-earning assets of 4.28% was comparable to the prior quarter, while average interest-earning assets of $8.8 billion increased $70 million compared with the prior quarter. Interest expense was up $1.0 million, or 7.0%, as the cost of interest-bearing liabilities increased 4 bps to 0.96% for the quarter ended June 30, 2019, driven by interest-bearing deposit costs increasing 8 bps, partially offset by the 6 bp decrease in short-term borrowings cost.

Net interest income was $78.6 million for the second quarter of 2019, up $2.9 million, or 3.8%, from the second quarter of 2018. The FTE net interest margin of 3.61% was up 4 bps from the second quarter of 2018. Interest income increased $8.5 million, or 10.0%, as the yield on average interest-earning assets increased 29 bps from the same period in 2018, and average interest-earning assets increased $209.7 million, or 2.4%, primarily due to a $207.6 million increase in average loans. Interest expense increased $5.6 million, as the cost of interest-bearing liabilities increased 35 bps, driven by interest-bearing deposit costs increasing 38 bps combined with a 39 bp increase in short-term borrowing costs.

Net interest income for the first six months of 2019 was $156.3 million, up $7.1 million, or 4.8%, from the same period in 2018. FTE net interest margin of 3.63% for the six months ended June 30, 2019, was up from 3.57% for the same period in 2018. Average interest-earning assets were up $261.6 million, or 3.1% for the six months ended June 30, 2019, as compared to the same period in 2018, driven by a $250.7 million increase in loans. Interest income increased $19.1 million, or 11.5%, due to the increase in earning assets combined with a 30 bp improvement in loan yields. Interest expense was up $12.0 million for the six months ended June 30, 2019 as compared to the same period in 2018, as the cost of interest-bearing liabilities increased 38 bps, driven by interest-bearing deposit costs increasing 38 bps combined with a 55 bp increase in short-term borrowing costs. The Federal Reserve has raised its target fed funds rate nine times from December 2015 through June 2019 for a total increase of 225 bps. During this same cycle of increasing rates, the Company’s average cost of deposits increased by 33 bps, resulting in a full cycle deposit beta of 14.7%.

Noninterest income for the three months ended June 30, 2019 was $34.2 million, up $0.4 million, or 1.2%, from the prior quarter and comparable with the second quarter of 2018. The increase from the prior quarter was primarily driven by higher ATM and debit card fees due to an increase in the number of accounts and usage and other noninterest income due to higher swap fee income that was partially offset by lower seasonal insurance and other financial services revenue.

Noninterest income for the six months ended June 30, 2019 was $68.1 million, up $2.6 million, or 4.0%, from the same period in 2018. The increase from the prior year was driven by higher retirement plan administration fees due to the acquisition of Retirement Plan Services, LLC, “RPS,” in the second quarter of 2018 and higher ATM and debit card fees due to an increase in the number of accounts and usage that was partially offset by lower trust income and other noninterest income due to lower non-recurring gains recognized in the first six months of 2019.

Noninterest expense for the three months ended June 30, 2019 was $66.2 million, down $2.2 million, or 3.3%, from the prior quarter and up $1.3 million, or 2.1%, from the second quarter of 2018. The decrease from the prior quarter was primarily driven by lower seasonal occupancy expenses and timing of equity-based compensation and other noninterest expense items. The increase from the second quarter of 2018 was driven by increases in salaries and employee benefits expense and equipment expense. Salaries and employee benefits expense increased from the second quarter of 2018 due to wage increases and higher incentive compensation.

Noninterest expense for the six months ended June 30, 2019 was $134.7 million, up $5.5 million, or 4.3%, from the same period in 2018. The increase from the prior year was driven by higher salaries and employee benefits, equipment expense and other noninterest expenses in the first half of 2019 as compared to the same period of 2018. The increase in salaries and employee benefits was primarily due to the RPS acquisition in the second quarter of 2018 and the timing of incentive compensation and wage increases.

Income tax expense for the three months ended June 30, 2019 was $8.8 million, up $0.7 million from the prior quarter and up $0.7 million from the second quarter of 2018. The effective tax rate of 22.4% for the second quarter of 2019 was up from 21.8% for the first quarter of 2019 and comparable to the second quarter of 2018. The increase in income tax expense from the prior quarter and from the second quarter of 2018 was primarily due to a higher level of taxable income.

Income tax expense for the six months ended June 30, 2019 was $16.9 million, up $1.8 million, or 11.9%, from the same period of 2018. The effective tax rate of 22.1% for the first six months of 2019 was up from 21.8% for the same period in the prior year. The increase in income tax expense from the prior year was due to a higher level of taxable income.

Asset Quality

Net charge-offs of $6.5 million for the three months ended June 30, 2019 were down as compared to $6.9 million for the prior quarter and comparable to the second quarter of 2018. Provision expense was higher at $7.3 million for the three months ended June 30, 2019 as compared with $5.8 million for the prior quarter and down from $8.8 million for the second quarter of 2018. Annualized net charge-offs to average loans for the second quarter of 2019 was 0.38%, down from 0.41% for the prior quarter and down from 0.39% for the second quarter of 2018.

Net charge-offs of $13.4 million for the six months ended June 30, 2019 compared to $13.3 million for the same period of 2018. Provision expense was $13.1 million for the six months ended June 30, 2019 as compared with $16.3 million for the same period of 2018. Annualized net charge-offs to average loans for the first six months of 2019 was 0.39% as compared with 0.40% for the first six months of 2018.

Nonperforming loans to total loans was 0.39% at June 30, 2019, down 3 bps from 0.42% at March 31, 2019 and up 1 bp from 0.38% at June 30, 2018. Past due loans as a percentage of total loans were 0.52% at June 30, 2019, comparable to March 31, 2019 and up from 0.50% at June 30, 2018.

The allowance for loan losses totaled $72.2 million at June 30, 2019, compared to $71.4 million at March 31, 2019 and $72.5 million at June 30, 2018. The allowance for loan losses as a percentage of loans was 1.04% (1.08% excluding acquired loans) at June 30, 2019, compared to 1.04% (1.09% excluding acquired loans) at March 31, 2019 and 1.06% (1.11% excluding acquired loans) at June 30, 2018.

Balance Sheet

Total assets were $9.6 billion at June 30, 2019, comparable to December 31, 2018. Loans were $7.0 billion at June 30, 2019, up $75.6 million from December 31, 2018. In the first half of 2019, loan growth in commercial and commercial real estate was partially offset by run-off in our consumer portfolios. Total deposits were $7.6 billion at June 30, 2019, up $225.5 million, or 3.1%, from December 31, 2018, reflecting growth in core and municipal deposits. Stockholders’ equity was $1.1 billion, representing a total equity-to-total assets ratio of 11.15% at June 30, 2019, compared with $1.0 billion or a total equity-to-total assets ratio of 10.65% at December 31, 2018.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.6 billion at June 30, 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 June 30, 2019 of 0.33% divided by the change in Federal Reserve’s target fed funds rate from December 2015 to June 2019 of 2.25%


NBT Bancorp Inc. and Subsidiaries  
Selected Financial Data  
(unaudited, dollars in thousands except per share data)  
             
  2019 2018  
Profitability: 2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Diluted earnings per share $ 0.69   $ 0.66   $ 0.65   $ 0.68   $ 0.64    
Weighted average diluted common shares outstanding   44,120,377     44,081,086     44,059,796     44,050,557     44,016,940    
Return on average assets (1)   1.28 %   1.24 %   1.20 %   1.25 %   1.21 %  
Return on average equity (1)   11.63 %   11.52 %   11.34 %   11.96 %   11.64 %  
Return on average tangible common equity (1)(3)   16.38 %   16.45 %   16.37 %   17.42 %   17.08 %  
Net interest margin (1)(2)   3.61 %   3.64 %   3.61 %   3.57 %   3.57 %  
             
  6 Months ended June 30,        
Profitability: 2019 2018        
Diluted earnings per share $ 1.35   $ 1.23          
Weighted average diluted common shares outstanding   44,096,681     43,991,731          
Return on average assets (1)   1.26 %   1.18 %        
Return on average equity (1)   11.57 %   11.32 %        
Return on average tangible common equity (1)(4)   16.41 %   16.52 %        
Net interest margin (1)(2)   3.63 %   3.57 %        
             
(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  
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Net income $ 30,555   $ 29,127   $ 28,652   $ 29,807   $ 28,121    
Amortization of intangible assets (net of tax)   670     726     734     791     822    
Net income, excluding intangibles amortization $ 31,225   $ 29,853   $ 29,386   $ 30,598   $ 28,943    
             
Average stockholders' equity $ 1,053,750   $ 1,025,753   $ 1,002,822   $ 988,551   $ 969,029    
Less: average goodwill and other intangibles   288,930     289,913     290,854     291,814     289,250    
Average tangible common equity $ 764,820   $ 735,840   $ 711,968   $ 696,737   $ 679,779    
             
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:  
 
             
  6 Months ended June 30,        
  2019 2018        
Net income $ 59,682   $ 54,107          
Amortization of intangible assets (net of tax)   1,396     1,508          
Net income, excluding intangibles amortization $ 61,078   $ 55,615          
             
Average stockholders' equity $ 1,039,829   $ 964,064          
Less: average goodwill and other intangibles   289,419     285,161          
Average tangible common equity $ 750,410   $ 678,903          
             
Note: Year-to-date EPS may not equal sum of quarters due to differences in outstanding shares.  
             

 

NBT Bancorp Inc. and Subsidiaries  
Selected Financial Data  
(unaudited, dollars in thousands except per share data)  
             
  2019 2018  
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Balance sheet data:            
Securities available for sale $ 979,696   $ 951,859   $ 998,496   $ 1,101,074   $ 1,192,939    
Securities held to maturity   744,601     780,565     783,599     659,949     544,163    
Net loans   6,891,108     6,818,907     6,815,204     6,814,457     6,785,721    
Total assets   9,635,718     9,533,510     9,556,363     9,547,284     9,467,138    
Total deposits   7,593,706     7,617,659     7,368,211     7,441,290     7,344,449    
Total borrowings   794,829     719,775     1,046,616     986,656     1,028,971    
Total liabilities   8,560,895     8,499,455     8,538,454     8,553,129     8,488,209    
Stockholders' equity   1,074,823     1,034,055     1,017,909     994,155     978,929    
             
Asset quality:            
Nonaccrual loans $ 24,669   $ 25,632   $ 25,487   $ 23,301   $ 24,006    
90 days past due and still accruing   2,387     3,335     5,085     4,734     2,209    
Total nonperforming loans   27,056     28,967     30,572     28,035     26,215    
Other real estate owned   2,203     2,222     2,441     3,271     4,349    
Total nonperforming assets   29,259     31,189     33,013     31,306     30,564    
Allowance for loan losses   72,165     71,405     72,505     72,805     72,450    
             
Asset quality ratios (total):            
Allowance for loan losses to total loans   1.04 %   1.04 %   1.05 %   1.06 %   1.06 %  
Total nonperforming loans to total loans   0.39 %   0.42 %   0.44 %   0.41 %   0.38 %  
Total nonperforming assets to total assets   0.30 %   0.33 %   0.35 %   0.33 %   0.32 %  
Allowance for loan losses to total nonperforming loans   266.72 %   246.50 %   237.16 %   259.69 %   276.37 %  
Past due loans to total loans   0.52 %   0.52 %   0.55 %   0.53 %   0.50 %  
Net charge-offs to average loans (1)   0.38 %   0.41 %   0.39 %   0.33 %   0.39 %  
             
Asset quality ratios (originated) (2):            
Allowance for loan losses to loans   1.08 %   1.09 %   1.10 %   1.11 %   1.11 %  
Nonperforming loans to loans   0.38 %   0.41 %   0.43 %   0.39 %   0.36 %  
Allowance for loan losses to nonperforming loans   287.67 %   265.63 %   254.92 %   285.86 %   306.08 %  
Past due loans to loans   0.52 %   0.52 %   0.56 %   0.53 %   0.50 %  
             
Capital:            
Equity to assets   11.15 %   10.85 %   10.65 %   10.41 %   10.34 %  
Tangible equity ratio (3)   8.41 %   8.06 %   7.85 %   7.59 %   7.48 %  
Book value per share $ 24.56   $ 23.64   $ 23.31   $ 22.77   $ 22.43    
Tangible book value per share (4) $ 17.97   $ 17.02   $ 16.66   $ 16.10   $ 15.73    
Tier 1 leverage ratio   9.88 %   9.62 %   9.52 %   9.36 %   9.25 %  
Common equity tier 1 capital ratio   10.95 %   10.69 %   10.49 %   10.28 %   10.04 %  
Tier 1 capital ratio   12.24 %   11.99 %   11.79 %   11.58 %   11.35 %  
Total risk-based capital ratio   13.21 %   12.98 %   12.78 %   12.58 %   12.34 %  
Common stock price (end of period) $ 37.51   $ 36.01   $ 34.59   $ 38.38   $ 38.15    
             
(1)  Annualized.  
(2)  Non-GAAP measure - Excludes acquired loans.  
(3)  Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.  
(4)  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)  
       
  June 30, December 31,  
Assets 2019 2018  
Cash and due from banks $ 150,154 $ 175,550  
Short-term interest bearing accounts   39,278   5,405  
Equity securities, at fair value   26,298   23,053  
Securities available for sale, at fair value   979,696   998,496  
Securities held to maturity (fair value $754,995 and $778,675, respectively)   744,601   783,599  
Federal Reserve and Federal Home Loan Bank stock   45,996   53,229  
Loans held for sale   15,662   6,943  
Loans   6,963,273   6,887,709  
Less allowance for loan losses   72,165   72,505  
Net loans $ 6,891,108 $ 6,815,204  
Premises and equipment, net   76,652   78,970  
Goodwill   274,769   274,769  
Intangible assets, net   13,738   15,599  
Bank owned life insurance   180,042   177,479  
Other assets   197,724   148,067  
Total assets $ 9,635,718 $ 9,556,363  
       
Liabilities and stockholders' equity      
Demand (noninterest bearing) $ 2,336,776 $ 2,361,099  
Savings, NOW and money market   4,280,363   4,076,434  
Time   976,567   930,678  
Total deposits $ 7,593,706 $ 7,368,211  
Short-term borrowings   609,366   871,696  
Long-term debt   84,267   73,724  
Junior subordinated debt   101,196   101,196  
Other liabilities   172,360   123,627  
Total liabilities $ 8,560,895 $ 8,538,454  
       
Total stockholders' equity $ 1,074,823 $ 1,017,909  
       
Total liabilities and stockholders' equity $ 9,635,718 $ 9,556,363  
       

 

NBT Bancorp Inc. and Subsidiaries   
Consolidated Statements of Income  
(unaudited, dollars in thousands except per share data)  
           
  Three Months Ended Six Months Ended  
  June 30, June 30,  
  2019 2018 2019 2018  
Interest, fee and dividend income          
Interest and fees on loans $    81,271   $ 74,172 $    160,592   $ 144,615  
Securities available for sale   6,031     7,003     11,953     13,929  
Securities held to maturity   5,089     2,811     10,306     5,436  
Other   842     781     1,726     1,547  
Total interest, fee and dividend income $    93,233   $ 84,767 $    184,577   $ 165,527  
Interest expense          
Deposits $    10,234   $ 5,079 $    19,060   $ 9,010  
Short-term borrowings   2,760     2,455     5,997     4,421  
Long-term debt   471     452     893     928  
Junior subordinated debt   1,141     1,040     2,309     1,941  
Total interest expense $    14,606   $ 9,026 $    28,259   $ 16,300  
Net interest income $    78,627   $ 75,741 $    156,318   $ 149,227  
Provision for loan losses   7,277     8,778     13,084     16,274  
Net interest income after provision for loan losses $    71,350   $ 66,963 $    143,234   $ 132,953  
Noninterest income          
Insurance and other financial services revenue $    5,938   $ 5,826 $    12,694   $ 12,330  
Service charges on deposit accounts   4,224     4,246     8,460     8,218  
ATM and debit card fees   6,156     5,816     11,681     11,089  
Retirement plan administration fees   7,836     7,296     15,570     12,635  
Trust   4,731     5,265     9,282     10,143  
Bank owned life insurance income   1,186     1,217     2,563     2,564  
Net securities (losses) gains     (69 )   91     (12 )   163  
Other   4,239     4,401     7,824     8,293  
Total noninterest income $    34,241   $ 34,158 $    68,062   $ 65,435  
Noninterest expense          
Salaries and employee benefits $    38,567   $ 37,726 $    77,923   $ 74,293  
Occupancy   5,443     5,535     11,718     11,654  
Data processing and communications   4,693     4,508     9,107     8,787  
Professional fees and outside services   3,359     3,336     7,027     6,828  
Equipment   4,518     4,151     9,275     8,189  
Office supplies and postage   1,577     1,504     3,168     3,077  
FDIC expense     949     1,092     1,966     2,293  
Advertising   641     700     1,144     1,037  
Amortization of intangible assets   893     1,096     1,861     2,010  
Loan collection and other real estate owned, net   961     908     1,746     2,245  
Other   4,630     4,332     9,756     8,747  
Total noninterest expense $    66,231   $ 64,888 $    134,691   $ 129,160  
Income before income tax expense $    39,360   $ 36,233 $    76,605   $ 69,228  
Income tax expense   8,805     8,112     16,923     15,121  
  Net income $    30,555   $ 28,121 $    59,682   $ 54,107  
Earnings Per Share          
Basic $    0.70   $ 0.64 $    1.36   $ 1.24  
Diluted $    0.69   $ 0.64 $    1.35   $ 1.23  
           
           

 

NBT Bancorp Inc. and Subsidiaries  
Quarterly Consolidated Statements of Income  
(unaudited, dollars in thousands except per share data)  
             
  2019 2018  
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Interest, fee and dividend income            
Interest and fees on loans $ 81,271   $ 79,321 $ 78,963   $ 77,249 $ 74,172  
Securities available for sale   6,031     5,922   6,332     6,659   7,003  
Securities held to maturity   5,089     5,217   4,344     3,462   2,811  
Other   842     884   885     834   781  
Total interest, fee and dividend income $ 93,233   $ 91,344 $ 90,524   $ 88,204 $ 84,767  
Interest expense            
Deposits $ 10,234   $ 8,826 $ 6,977   $ 6,157 $ 5,079  
Short-term borrowings   2,760     3,237   3,131     3,000   2,455  
Long-term debt   471     422   431     431   452  
Junior subordinated debt   1,141     1,168   1,110     1,089   1,040  
Total interest expense $ 14,606   $ 13,653 $ 11,649   $ 10,677 $ 9,026  
Net interest income $ 78,627   $ 77,691 $ 78,875   $ 77,527 $ 75,741  
Provision for loan losses   7,277     5,807   6,528     6,026   8,778  
Net interest income after provision for loan losses $ 71,350   $ 71,884 $ 72,347   $ 71,501 $ 66,963  
Noninterest income            
Insurance and other financial services revenue $ 5,938   $ 6,756 $ 5,843   $ 6,172 $ 5,826  
Service charges on deposit accounts   4,224     4,236   4,503     4,503   4,246  
ATM and debit card fees   6,156     5,525   5,704     5,906   5,816  
Retirement plan administration fees   7,836     7,734   7,113     7,244   7,296  
Trust   4,731     4,551   4,573     4,808   5,265  
Bank owned life insurance income   1,186     1,377   1,239     1,288   1,217  
Net securities (losses) gains   (69 )   57   (6,916 )   412   91  
Other   4,239     3,585   3,887     3,048   4,401  
Total noninterest income $ 34,241   $ 33,821 $ 25,946   $ 33,381 $ 34,158  
Noninterest expense            
Salaries and employee benefits $ 38,567   $ 39,356 $ 38,998   $ 38,394 $ 37,726  
Occupancy   5,443     6,275   5,284     5,380   5,535  
Data processing and communications   4,693     4,414   4,431     4,434   4,508  
Professional fees and outside services   3,359     3,668   3,968     3,580   3,336  
Equipment   4,518     4,757   4,529     4,319   4,151  
Office supplies and postage   1,577     1,591   1,564     1,563   1,504  
FDIC expense   949     1,017   1,135     1,223   1,092  
Advertising   641     503   1,006     739   700  
Amortization of intangible assets   893     968   978     1,054   1,096  
Loan collection and other real estate owned, net   961     785   738     1,234   908  
Other   4,630     5,126   6,273     4,577   4,332  
Total noninterest expense $ 66,231   $ 68,460 $ 68,904   $ 66,497 $ 64,888  
Income before income tax expense $ 39,360   $ 37,245 $ 29,389   $ 38,385 $ 36,233  
Income tax expense   8,805     8,118   737     8,578   8,112  
Net income $ 30,555   $ 29,127 $ 28,652   $ 29,807 $ 28,121  
Earnings Per Share            
Basic $ 0.70   $ 0.67 $ 0.66   $ 0.68 $ 0.64  
Diluted $ 0.69   $ 0.66 $ 0.65   $ 0.68 $ 0.64  
             

 

NBT Bancorp Inc. and Subsidiaries
Average Quarterly Balance Sheets
(unaudited, dollars in thousands)
                       
    Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
    Q2 - 2019 Q1 - 2019 Q4 - 2018 Q3 - 2018 Q2 - 2018
Assets                      
Short-term interest bearing accounts   $ 25,783 1.28 % $ 9,065 4.07 % $ 3,780 5.25 % $ 3,328 6.08 % $ 3,574 5.16 %
Securities available for sale (1) (3)     981,079 2.47 %   984,704 2.45 %   1,104,198 2.29 %   1,197,910 2.22 %   1,266,304 2.23 %
Securities held to maturity (1) (3)     770,651 2.83 %   782,570 2.90 %   688,840 2.73 %   591,220 2.58 %   503,501 2.50 %
Investment in FRB and FHLB Banks     46,179 6.60 %   49,152 6.54 %   47,689 6.95 %   50,107 6.20 %   48,184 6.12 %
Loans (2) (3)     6,958,299 4.69 %   6,886,672 4.68 %   6,876,341 4.56 %   6,839,565 4.49 %   6,750,710 4.41 %
Total interest earning assets   $ 8,781,991 4.28 % $ 8,712,163 4.28 % $ 8,720,848 4.14 % $ 8,682,130 4.05 % $ 8,572,273 3.99 %
Other assets     816,748     795,585     769,302     776,219     766,604  
Total assets   $ 9,598,739   $ 9,507,748   $ 9,490,150   $ 9,458,349   $ 9,338,877  
                       
Liabilities and stockholders' equity                      
Money market deposit accounts   $ 1,916,045 1.16 % $ 1,804,053 0.99 % $ 1,745,980 0.65 % $ 1,724,853 0.58 % $ 1,699,956 0.43 %
NOW deposit accounts     1,127,413 0.13 %   1,135,213 0.16 %   1,166,383 0.18 %   1,164,513 0.17 %   1,222,889 0.16 %
Savings deposits     1,282,084 0.06 %   1,252,042 0.06 %   1,250,703 0.06 %   1,279,520 0.06 %   1,289,062 0.06 %
Time deposits     953,698 1.73 %   942,457 1.64 %   921,252 1.47 %   881,792 1.33 %   858,080 1.22 %
Total interest bearing deposits   $ 5,279,240 0.78 % $ 5,133,765 0.70 % $ 5,084,318 0.54 % $ 5,050,678 0.48 % $ 5,069,987 0.40 %
Short-term borrowings     620,898 1.78 %   712,306 1.84 %   724,693 1.71 %   766,372 1.55 %   706,694 1.39 %
Long-term debt     82,414 2.29 %   73,707 2.32 %   73,735 2.32 %   73,762 2.32 %   84,676 2.14 %
Junior subordinated debt     101,196 4.52 %   101,196 4.68 %   101,196 4.35 %   101,196 4.27 %   101,196 4.12 %
Total interest bearing liabilities   $ 6,083,748 0.96 % $ 6,020,974 0.92 % $ 5,983,942 0.77 % $ 5,992,008 0.71 % $ 5,962,553 0.61 %
Demand deposits     2,298,867     2,309,531     2,373,235     2,356,216     2,294,023  
Other liabilities     162,374     151,490     130,151     121,574     113,272  
Stockholders' equity     1,053,750     1,025,753     1,002,822     988,551     969,029  
Total liabilities and stockholders' equity   $ 9,598,739   $ 9,507,748   $ 9,490,150   $ 9,458,349   $ 9,338,877  
                       
Interest rate spread     3.32 %   3.36 %   3.37 %   3.34 %   3.38 %
Net interest margin (FTE) (3)     3.61 %   3.64 %   3.61 %   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 $445, $500, $535, $529 and $478 for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively.
 

 

NBT Bancorp Inc. and Subsidiaries  
Average Year-to-Date Balance Sheets  
(unaudited, dollars in thousands)  
                 
    Average   Yield/ Average   Yield/  
    Balance Interest Rates  Balance Interest Rates   
Six Months ended June 30,    2019 2018  
Assets                
Short-term interest bearing accounts   $ 17,471 $ 174 2.01 % $ 3,198 $ 82 5.17 %  
Securities available for sale (1) (3)     982,881   11,984 2.46 %   1,269,949   14,017 2.23 %  
Securities held to maturity (1) (3)     776,577   11,043 2.87 %   492,996   6,081 2.49 %  
Investment in FRB and FHLB Banks     47,657   1,552 6.57 %   47,518   1,465 6.22 %  
Loans (2) (3)     6,922,684   160,768 4.68 %   6,672,016   144,825 4.38 %  
Total interest earning assets   $ 8,747,270 $ 185,521 4.28 % $ 8,485,677 $ 166,470 3.96 %  
Other assets     806,225       756,444      
Total assets   $ 9,553,495     $ 9,242,121      
                 
Liabilities and stockholders' equity                
Money market deposit accounts   $ 1,860,358 $ 9,974 1.08 % $ 1,677,755 $ 2,933 0.35 %  
NOW deposit accounts     1,131,291   817 0.15 %   1,216,992   882 0.15 %  
Savings deposits     1,267,146   362 0.06 %   1,268,859   354 0.06 %  
Time deposits     948,109   7,907 1.68 %   830,671   4,841 1.18 %  
Total interest bearing deposits   $ 5,206,904 $ 19,060 0.74 % $ 4,994,277 $ 9,010 0.36 %  
Short-term borrowings     666,349   5,997 1.81 %   709,442   4,421 1.26 %  
Long-term debt     78,085   893 2.31 %   86,749   928 2.16 %  
Junior subordinated debt     101,196   2,309 4.60 %   101,196   1,941 3.87 %  
Total interest bearing liabilities   $ 6,052,534 $ 28,259 0.94 % $ 5,891,664 $ 16,300 0.56 %  
Demand deposits     2,304,169       2,277,083      
Other liabilities     156,963       109,310      
Stockholders' equity     1,039,829       964,064      
Total liabilities and stockholders' equity   $ 9,553,495     $ 9,242,121      
Net interest income (FTE)     $ 157,262     $ 150,170    
Interest rate spread       3.34 %     3.40 %  
Net interest margin (FTE) (3)       3.63 %     3.57 %  
Taxable equivalent adjustment     $ 944     $ 943    
Net interest income     $ 156,318     $ 149,227    
                 
(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 has been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.  

 

NBT Bancorp Inc. and Subsidiaries
Consolidated Loan Balances
(unaudited, dollars in thousands)
           
  2019 2018
  2nd Q 1st Q 4th Q 3rd Q 2nd Q
Commercial $1,299,784 $1,306,551 $1,291,568 $1,310,262 $1,299,437
Commercial real estate   2,025,280   1,943,931   1,930,742   1,902,315   1,891,119
Residential real estate mortgages   1,404,079   1,390,411   1,380,836   1,373,487   1,350,336
Dealer finance   1,189,670   1,191,111   1,216,144   1,229,700   1,252,843
Specialty lending   519,974   529,144   524,928   521,396   507,151
Home equity   456,754   463,582   474,566   480,761   488,493
Other consumer   67,732   65,582   68,925   69,341   68,792
Total loans $6,963,273 $6,890,312 $6,887,709 $6,887,262 $6,858,171


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

Source: NBT Bancorp Inc.

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