UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2022


NBT BANCORP INC.
(Exact name of registrant as specified in its charter)

Delaware
000-14703
16-1268674
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)

52 South Broad Street, Norwich, New York 13815
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (607) 337-2265

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of class

Trading Symbol

Name of exchange on which registered
Common Stock, par value $0.01 per share

NBTB

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition

On April 25, 2022, NBT Bancorp Inc. issued a press release describing its results of operations for the quarter ended March 31, 2022. That press release is furnished as Exhibit 99.1 hereto. A conference call will be held at 8:30 a.m. Eastern Time on Tuesday, April 26, 2022, to review the first quarter 2022 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Event Calendar page of the Company’s website at www.nbtbancorp.com.
 
Item 9.01
Financial Statements and Exhibits.
 
(a)
Not applicable.
 
(b)
Not applicable.
 
(c)
Not applicable.
 
(d)
Exhibits.
 
Exhibit No.

Description


Press release of NBT Bancorp Inc. April 25, 2022


104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


NBT BANCORP INC.


Date: April 25, 2022
By:
/s/ Scott A. Kingsley


Scott A. Kingsley


Executive Vice President


and Chief Financial Officer




Exhibit 99.1

1

FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS


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. ANNOUNCES FIRST QUARTER NET INCOME OF $39.1 MILLION ($0.90 PER DILUTED COMMON SHARE)

NORWICH, NY (April 25, 2022) – NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income of $39.1 million, or $0.90 per diluted share for the three months ended March 31, 2022, compared to $39.8 million, or $0.91 per diluted share, in the first quarter of 2021 and $37.3 million, or $0.86 per diluted share in the fourth quarter of 2021. Net interest income recognized in the first quarter of 2022 from the Paycheck Protection Program (“PPP”) was approximately $2.0 million, compared to $6.2 million in the first quarter of 2021, and $7.5 million in the fourth quarter of 2021, reflective of significantly higher levels of loan forgiveness in the prior year. Excluding the impact of PPP loan income recognition, net interest income in the first quarter of 2022 improved in comparison to the first quarter of 2021 and the linked fourth quarter of 2021 due to solid organic loan growth, productive incremental deployment of excess liquidity into investment securities, and lower costs of deposits. Noninterest income grew to $42.7 million in the first quarter of 2022, up 15.2% from the first quarter of 2021, and 3.8% higher than the fourth quarter of 2021. Quarterly operating expenses of $72.1 million in the first quarter of 2022 were 6.3% above the first quarter of the prior year, and seasonally 3.9% lower than the linked fourth quarter of 2021. The Company recorded a provision for loan losses of $0.6 million in the first quarter of 2022, compared to a net benefit of $2.8 million in the first quarter of 2021, and a provision of $3.1 million in the fourth quarter of 2021.
 
CEO Comments

“We are extremely pleased with our first quarter results, including 11% annualized loan growth, deposit growth and continued strong performances by our fee-based businesses. Our customers have navigated this difficult operating environment and have grown their businesses, and we have been there to help them,” said NBT President and CEO John H. Watt, Jr. “Our asset quality is excellent, with historically low levels of net charge-offs and nonperforming assets. We recently received two powerful affirmations of our team and their commitment to our customers. NBT Bank was named one of Forbes World's Best Banks for 2022, and we are the highest ranked bank based in New York State. In the J.D. Power 2022 U.S. Retail Banking Satisfaction Study, NBT Bank ranked #2 in the New York Tri-State Region, which includes New York, Connecticut and New Jersey.”


2
First Quarter Financial Highlights

Net Income
           Net income of $39.1 million
           Diluted earnings per share of $0.90
Net Interest
Income / NIM
           Net interest income on a fully taxable equivalent (“FTE”) basis was $80.6 million1
           Net interest margin (“NIM”) on a FTE basis was 2.95%1, down 13 basis points (“bps”) from the prior quarter, due primarily to lower PPP income recognition
           Total cost of deposits of 0.07%
Noninterest Income
           Noninterest income was $42.8 million, excluding securities gains (losses) and was 34.8% of total revenue
Pre-Provision Net
Revenue (“PPNR”)
           PPNR1 was $50.9 million compared to $51.5 million in the fourth quarter of 2021 and $47.5 million in the first quarter of 2021
Loans and Credit
Quality
           Period end total loans were $7.6 billion at March 31, 2022, up 2%, from December 31, 2021
           Period end loans increased $202 million, or 3%, from December 31, 2021, excluding $51 million and $101 million of PPP loans at March 31, 2022 and December 31, 2021, respectively
           Allowance for loan losses to total loans of 1.18%, was down 5 bps from the fourth quarter 2021
           Net charge-offs to average loans was 0.14%, annualized
           Nonperforming loans to total loans was 0.36%, down from 0.44% in the prior quarter
Capital
           Tangible book value per share2 was $21.25 at March 31, 2022, 3% above the first quarter of 2021 and lower than December 31, 2021 resulting primarily from the impact of higher interest rates on available for sale investment securities and the related impact to AOCI
           Tangible equity to assets of 7.70%1
           CET1 ratio of 12.23%; Leverage ratio of 9.52%

Loans


Period end total loans were $7.6 billion at March 31, 2022 and $7.5 billion at December 31, 2021.

Excluding PPP loans, period end loans increased $202 million from December 31, 2021. Commercial and industrial loans increased $59.6 million to $1.2 billion; commercial real estate loans increased $54.2 million to $2.7 billion; and total consumer loans increased $87.8 million to $3.7 billion.

Total PPP loans as of March 31, 2022 were $51 million (net of unamortized fees) with 90% of the original $836 million forgiven through the first quarter of 2022. The following PPP loan activity occurred during the first quarter of 2022:

o
$48.4 million of loans forgiven

o
$2.0 million of interest and fees recognized into interest income, compared to $7.5 million for the fourth quarter of 2021

Commercial line of credit utilization rate was 23% at March 31, 2022 compared to 21% at December 31, 2021 and 22% at March 31, 2021.


3
Deposits


Total deposits at March 31, 2022 were $10.5 billion, compared to $10.2 billion at December 31, 2021, driven by increases in savings and money market deposit accounts primarily due to seasonal municipal inflows during the quarter.

Loan to deposit ratio was 73.1% at March 31, 2022, compared to 73.3% at December 31, 2021.

Net Interest Income and Net Interest Margin
 

Net interest income for the first quarter of 2022 was $80.3 million, which was down $4.8 million, or 5.7%, from the fourth quarter of 2021 and up $1.3 million, or 1.6%, from the first quarter of 2021. PPP income of $2.0 million was $5.6 million lower in the first quarter of 2022 compared to the prior quarter, partly offset by a $1.1 million increase in interest income on securities.

The NIM on a FTE basis for the first quarter of 2022 was 2.95%, down 13 bps from the fourth quarter of 2021 and down 22 bps from the first quarter of 2021. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM decreased 2 bps from the prior quarter primarily due to a 3 bp decrease in earning asset yields partially offset by a 1 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 22 bps in the first quarter of 2022 compared to a negative 11 bps impact in the fourth quarter of 2021.

Earning asset yields for the three months ended March 31, 2022 were down 14 bps from the prior quarter and down 29 bps from the same quarter in the prior year. Earning assets grew $71.9 million, or 0.7%, from the prior quarter and grew $948.0 million, or 9.3%, from the same quarter in the prior year. The following are highlights comparing the first quarter of 2022 to the prior quarter:

o
The average balance of investment securities increased $204.0 million and yields increased 9 bps.

o
Investment of excess liquidity resulted in a $155.5 million decrease in the average balances of short-term interest-bearing accounts with a yield of 0.17%.

o
Loan yields decreased 25 bps to 3.95% for the quarter. Excluding PPP loans, loan yields declined 1 bp from the prior quarter.

Total cost of deposits was 0.07% for the first quarter of 2022, down 1 bp from the prior quarter and down 7 bps from the same period in the prior year.

The cost of interest-bearing liabilities for the three months ended March 31, 2022 was 0.23%, down 1 bp compared to the prior quarter of 0.24% and down 11 bps from the first quarter of 2021 of 0.34%.

Credit Quality and Allowance for Credit Losses


Net charge-offs to total average loans of 14 bps compared to 22 bps in the prior quarter and 12 bps (13 bps excluding PPP loans) in the first quarter of 2021.

Nonperforming assets to total assets was 0.23% compared to 0.27% (0.28% excluding PPP loans) at December 31, 2021 and 0.41% (0.43% excluding PPP loans) at March 31, 2021.

Provision expense for the three months ended March 31, 2022 was $0.6 million with net charge-offs of $2.6 million. Provision expense was $2.5 million lower than the fourth quarter of 2021 and $3.4 million higher than the first quarter of 2021. The decrease in provision expense from the prior quarter was driven by generally positive changes in macro-economic forecasts and a lower level of charge-offs, partly offset by providing for loan growth. The increase in provision expense from the first quarter of 2021 was meaningfully influenced by positive year-over-year changes in the economic forecast, loan growth and the resultant required level of allowance for loan losses.


4

The allowance for loan losses was $90.0 million, or 1.18% loans (1.18% excluding PPP loans and related allowance) of total at March 31, 2022, compared to 1.23% (1.24% excluding PPP loans and related allowance) of total loans at December 31, 2021 and 1.38% (1.48% excluding PPP loans and related allowance) of total loans at March 31, 2021. The decrease in the level of allowance for loan 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 $4.8 million at March 31, 2022 compared to the prior quarter at $5.1 million.

Noninterest Income
 

Total noninterest income, excluding securities gains (losses), was $42.8 million for the three months ended March 31, 2022, up $1.7 million from the prior quarter and up $6.3 million from the prior year quarter.

Service charges on deposit accounts were comparable to the prior quarter and higher than the first quarter of 2021. During the quarter, the Company made adjustments to customer non-sufficient funds processing practices and expects, once fully implemented, these adjustments to reduce service charge fee income by approximately $0.5 million per quarter.

Card services income was comparable to the prior quarter and higher than the first quarter of 2021 due to increased volume. As discussed in previous quarters, the Company will be subject to the provisions of the Durbin Amendment to the Dodd-Frank Act beginning in the third quarter of 2022, which it estimates will reduce quarterly debit card interchange income by approximately $3.7 million.

Retirement plan administration fees were higher than the prior quarter and higher than the first quarter of 2021 driven by higher activity-based fees, continued organic growth as well as the impact of positive equity market returns over the past year.

Wealth management fees were comparable to the prior quarter and higher than the first quarter of 2021 aided by market performance and additional new customers.

Noninterest Expense


Total noninterest expense for the first quarter of 2022 was down 3.9% from the previous quarter and up 6.3% from the first quarter of 2021.

Salaries and benefits increased from the prior quarter due to seasonally higher payroll taxes and stock-based compensation expenses, partly offset by two less payroll days, and increased from the first quarter of 2021 due to increased salaries and wages including merit pay increases and higher levels of incentive compensation.

Professional fees and outside services expense were lower than the prior quarter and higher than the first quarter of 2021 due to timing of costs associated with several digital and other technology-related initiatives.

Loan collection and other real estate owned were lower than the prior quarter due to the gain on the sale of a property in the first quarter of 2022 and a write-down of a property in the fourth quarter of 2021.

Other expenses declined from the linked fourth quarter of 2021 due principally to the seasonal timing of certain items.
 

5
Income Taxes
 

The effective tax rate was 22.2% for the first quarter of 2022 compared to 22.4% for the fourth quarter of 2021 and 21.9% for the first quarter of 2021.

Capital


Capital ratios remain strong with tangible common equity to tangible assets1 at 7.70%. Tangible book value per share2 was $21.25 at March 31, 2022, $22.26 at December 31, 2021 and $20.71 at March 31, 2021.

Stockholder’s equity decreased $48 million driven by the $68 million decrease in accumulated other comprehensive income due to the change in the market value of securities available for sale, dividends declared of $12 million and the repurchase of common stock of $8 million, partly offset by net income of $39 million.

March 31, 2022, CET1 capital ratio of 12.23%, leverage ratio of 9.52% and total risk-based capital ratio of 15.64%.

Stock Repurchase


The Company purchased 217,100 shares of common stock during the first quarter of 2022 at a weighted average price of $37.55 including commissions. The repurchase program under which these shares were purchased expires on December 31, 2023. The Company purchased 182,900 shares of common stock during the month of April 2022 at a weighted average price of $35.88 including commissions.

Other Events


On April 1, 2022, the Company completed the acquisition of Cleveland Hauswirth Investment Management (“CH”). CH is a Registered Investment Advisor located in Milwaukee, WI with $150 million in assets under management that provides investment advice and fiduciary services to individual and corporate retirement plan clients.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 26, 2022, to review first quarter 2022 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 $12.1 billion at March 31, 2022. 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 national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.


6
Forward-Looking Statements
 
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions 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, 2021 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.


7
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.


8
NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)

   
2022
   
2021
 
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Profitability:
                             
Diluted earnings per share
 
$
0.90
   
$
0.86
   
$
0.86
   
$
0.92
   
$
0.91
 
Weighted average diluted common shares outstanding
   
43,385,451
     
43,574,539
     
43,631,497
     
43,792,940
     
43,889,889
 
Return on average assets3
   
1.32
%
   
1.23
%
   
1.26
%
   
1.39
%
   
1.46
%
Return on average equity3
   
12.78
%
   
11.89
%
   
12.04
%
   
13.42
%
   
13.57
%
Return on average tangible common equity1 3
   
16.87
%
   
15.70
%
   
15.97
%
   
17.93
%
   
18.24
%
Net interest margin1 3
   
2.95
%
   
3.08
%
   
2.88
%
   
3.00
%
   
3.17
%
                                         
     
2022
     
2021
 
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Balance sheet data:
                                       
Short-term interest-bearing accounts
 
$
913,315
   
$
1,111,296
   
$
1,131,074
   
$
883,758
   
$
972,195
 
Securities available for sale
   
1,662,697
     
1,687,361
     
1,576,030
     
1,534,733
     
1,387,028
 
Securities held to maturity
   
895,005
     
733,210
     
683,103
     
622,351
     
592,999
 
Net loans
   
7,559,826
     
7,406,459
     
7,473,442
     
7,419,127
     
7,528,459
 
Total assets
   
12,147,833
     
12,012,111
     
11,994,411
     
11,574,947
     
11,537,253
 
Total deposits
   
10,461,623
     
10,234,469
     
10,195,178
     
9,785,257
     
9,815,930
 
Total borrowings
   
278,788
     
311,476
     
313,311
     
304,110
     
308,766
 
Total liabilities
   
10,945,583
     
10,761,658
     
10,752,954
     
10,349,891
     
10,346,272
 
Stockholders’ equity
   
1,202,250
     
1,250,453
     
1,241,457
     
1,225,056
     
1,190,981
 
                                         
Capital:
                                       
Equity to assets
   
9.90
%
   
10.41
%
   
10.35
%
   
10.58
%
   
10.32
%
Tangible equity ratio1
   
7.70
%
   
8.20
%
   
8.13
%
   
8.28
%
   
8.00
%
Book value per share
 
$
27.96
   
$
28.97
   
$
28.65
   
$
28.19
   
$
27.43
 
Tangible book value per share2
 
$
21.25
   
$
22.26
   
$
21.95
   
$
21.50
   
$
20.71
 
Leverage ratio
   
9.52
%
   
9.41
%
   
9.47
%
   
9.40
%
   
9.60
%
Common equity tier 1 capital ratio
   
12.23
%
   
12.25
%
   
12.20
%
   
12.12
%
   
12.13
%
Tier 1 capital ratio
   
13.39
%
   
13.43
%
   
13.39
%
   
13.34
%
   
13.38
%
Total risk-based capital ratio
   
15.64
%
   
15.73
%
   
15.74
%
   
15.78
%
   
15.92
%
Common stock price (end of period)
 
$
36.13
   
$
38.52
   
$
36.12
   
$
35.97
   
$
39.90
 


9
NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)

   
2022
   
2021
 
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Asset quality:
                             
Nonaccrual loans
 
$
25,812
   
$
30,285
   
$
35,737
   
$
40,550
   
$
43,399
 
90 days past due and still accruing
   
1,944
     
2,458
     
2,940
     
2,575
     
2,155
 
Total nonperforming loans
   
27,756
     
32,743
     
38,677
     
43,125
     
45,554
 
Other real estate owned
   
-
     
167
     
859
     
798
     
1,318
 
Total nonperforming assets
   
27,756
     
32,910
     
39,536
     
43,923
     
46,872
 
Allowance for loan losses
   
90,000
     
92,000
     
93,000
     
98,500
     
105,000
 
                                         
Asset quality ratios (total):
                                       
Allowance for loan losses to total loans
   
1.18
%
   
1.23
%
   
1.23
%
   
1.31
%
   
1.38
%
Total nonperforming loans to total loans
   
0.36
%
   
0.44
%
   
0.51
%
   
0.57
%
   
0.60
%
Total nonperforming assets to total assets
   
0.23
%
   
0.27
%
   
0.33
%
   
0.38
%
   
0.41
%
Allowance for loan losses to total nonperforming loans
   
324.25
%
   
280.98
%
   
240.45
%
   
228.41
%
   
230.50
%
Past due loans to total loans4
   
0.24
%
   
0.29
%
   
0.46
%
   
0.26
%
   
0.22
%
Net charge-offs to average loans3
   
0.14
%
   
0.22
%
   
0.11
%
   
0.07
%
   
0.12
%
                                         
Asset quality ratios (excluding paycheck protection program):
                                 
Allowance for loan losses to total loans
   
1.18
%
   
1.24
%
   
1.28
%
   
1.38
%
   
1.48
%
Total nonperforming loans to total loans
   
0.37
%
   
0.44
%
   
0.53
%
   
0.60
%
   
0.64
%
Total nonperforming assets to total assets
   
0.23
%
   
0.28
%
   
0.34
%
   
0.39
%
   
0.43
%
Allowance for loan losses to total nonperforming loans
   
324.24
%
   
280.96
%
   
240.42
%
   
228.36
%
   
230.44
%
Past due loans to total loans4
   
0.25
%
   
0.29
%
   
0.48
%
   
0.27
%
   
0.23
%
Net charge-offs to average loans3
   
0.14
%
   
0.22
%
   
0.12
%
   
0.07
%
   
0.13
%
                                         
     
2022
     
2021
 
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Allowance for loan losses as a percentage of loans by segment:
                         
Commercial & industrial
   
0.66
%
   
0.78
%
   
0.83
%
   
1.11
%
   
1.20
%
Commercial real estate
   
0.79
%
   
0.78
%
   
0.93
%
   
1.26
%
   
1.48
%
Paycheck protection program
   
0.01
%
   
0.01
%
   
0.01
%
   
0.01
%
   
0.01
%
Residential real estate
   
0.88
%
   
0.92
%
   
0.93
%
   
0.98
%
   
1.03
%
Auto
   
0.76
%
   
0.79
%
   
0.78
%
   
0.76
%
   
0.78
%
Other consumer
   
4.14
%
   
4.49
%
   
4.57
%
   
4.27
%
   
4.34
%
Total
   
1.18
%
   
1.23
%
   
1.23
%
   
1.31
%
   
1.38
%
Total excluding PPP loans
   
1.18
%
   
1.24
%
   
1.28
%
   
1.38
%
   
1.48
%
                                         
     
2022
     
2021
 
Loans by line of business:
 
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Commercial
 
$
1,214,834
   
$
1,155,240
   
$
1,148,176
   
$
1,159,591
   
$
1,141,594
 
Commercial real estate
   
2,709,611
     
2,655,367
     
2,638,762
     
2,585,421
     
2,567,536
 
Paycheck protection program
   
50,977
     
101,222
     
276,195
     
359,738
     
536,494
 
Residential real estate mortgages
   
1,584,551
     
1,571,232
     
1,549,684
     
1,512,354
     
1,478,216
 
Indirect auto
   
890,643
     
859,454
     
873,860
     
899,324
     
913,083
 
Specialty lending
   
835,546
     
778,291
     
692,919
     
602,585
     
577,509
 
Home equity
   
319,180
     
330,357
     
339,316
     
351,469
     
369,633
 
Other consumer
   
44,484
     
47,296
     
47,530
     
47,145
     
49,394
 
Total loans
 
$
7,649,826
   
$
7,498,459
   
$
7,566,442
   
$
7,517,627
   
$
7,633,459
 
                                         
PPP income recognized
 
$
1,976
   
$
7,545
   
$
2,861
   
$
4,732
   
$
6,171
 
PPP unamortized fees
 
$
1,629
   
$
3,420
   
$
10,536
   
$
12,576
   
$
14,240
 


10
NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, dollars in thousands)

   
March 31,
   
December 31,
Assets
 
2022
   
2021
Cash and due from banks
 
$
180,865
   
$
157,775
Short-term interest-bearing accounts
   
913,315
     
1,111,296
Equity securities, at fair value
   
32,554
     
33,550
Securities available for sale, at fair value
   
1,662,697
     
1,687,361
Securities held to maturity (fair value $851,635 and $735,260, respectively)
   
895,005
     
733,210
Federal Reserve and Federal Home Loan Bank stock
   
25,005
     
25,098
Loans held for sale
   
263
     
830
Loans
   
7,649,826
     
7,498,459
Less allowance for loan losses
   
90,000
     
92,000
Net loans
 
$
7,559,826
   
$
7,406,459
Premises and equipment, net
   
71,030
     
72,093
Goodwill
   
280,541
     
280,541
Intangible assets, net
   
8,291
     
8,927
Bank owned life insurance
   
228,979
     
228,238
Other assets
   
289,462
     
266,733
Total assets
 
$
12,147,833
   
$
12,012,111
               
Liabilities and stockholders’ equity
             
Demand (noninterest bearing)
 
$
3,751,268
   
$
3,689,556
Savings, NOW and money market
   
6,222,378
     
6,043,441
Time
   
487,977
     
501,472
Total deposits
 
$
10,461,623
   
$
10,234,469
Short-term borrowings
   
65,022
     
97,795
Long-term debt
   
13,971
     
13,995
Subordinated debt, net
   
98,599
     
98,490
Junior subordinated debt
   
101,196
     
101,196
Other liabilities
   
205,172
     
215,713
Total liabilities
 
$
10,945,583
   
$
10,761,658
               
Total stockholders’ equity
 
$
1,202,250
   
$
1,250,453
               
Total liabilities and stockholders’ equity
 
$
12,147,833
   
$
12,012,111


11
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)

   
2022
   
2021
 
   
1st Q
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
 
Interest, fee and dividend income
                         
Interest and fees on loans
 
$
73,343
   
$
79,470
   
$
72,817
   
$
74,795
   
$
75,093
 
Securities available for sale
   
6,840
     
6,101
     
5,898
     
5,762
     
5,544
 
Securities held to maturity
   
3,493
     
3,097
     
2,976
     
3,096
     
3,382
 
Other
   
525
     
639
     
524
     
391
     
291
 
Total interest, fee and dividend income
 
$
84,201
   
$
89,307
   
$
82,215
   
$
84,044
   
$
84,310
 
Interest expense
                                       
Deposits
 
$
1,842
   
$
2,132
   
$
2,548
   
$
2,862
   
$
3,172
 
Short-term borrowings
   
16
     
28
     
28
     
32
     
70
 
Long-term debt
   
87
     
88
     
89
     
88
     
124
 
Subordinated debt
   
1,359
     
1,360
     
1,359
     
1,359
     
1,359
 
Junior subordinated debt
   
549
     
518
     
517
     
525
     
530
 
Total interest expense
 
$
3,853
   
$
4,126
   
$
4,541
   
$
4,866
   
$
5,255
 
Net interest income
 
$
80,348
   
$
85,181
   
$
77,674
   
$
79,178
   
$
79,055
 
Provision for loan losses
   
596
     
3,097
     
(3,342
)
   
(5,216
)
   
(2,796
)
Net interest income after provision for loan losses
 
$
79,752
   
$
82,084
   
$
81,016
   
$
84,394
   
$
81,851
 
Noninterest income
                                       
Service charges on deposit accounts
 
$
3,688
   
$
3,804
   
$
3,489
   
$
3,028
   
$
3,027
 
Card services income
   
8,695
     
8,847
     
9,101
     
9,184
     
7,550
 
Retirement plan administration fees
   
13,279
     
11,816
     
10,495
     
9,779
     
10,098
 
Wealth management
   
8,640
     
8,619
     
8,783
     
8,406
     
7,910
 
Insurance services
   
3,788
     
3,394
     
3,720
     
3,508
     
3,461
 
Bank owned life insurance income
   
1,654
     
1,629
     
1,548
     
1,659
     
1,381
 
Net securities (losses) gains
   
(179
)
   
(2
)
   
(100
)
   
201
     
467
 
Other
   
3,094
     
3,004
     
3,293
     
3,551
     
3,144
 
Total noninterest income
 
$
42,659
   
$
41,111
   
$
40,329
   
$
39,316
   
$
37,038
 
Noninterest expense
                                       
Salaries and employee benefits
 
$
45,508
   
$
44,118
   
$
44,190
   
$
42,671
   
$
41,601
 
Technology and data services
   
8,547
     
8,563
     
8,421
     
8,841
     
8,892
 
Occupancy
   
6,793
     
6,635
     
6,154
     
6,370
     
6,889
 
Professional fees and outside services
   
4,276
     
4,903
     
3,784
     
4,030
     
3,589
 
Office supplies and postage
   
1,424
     
1,528
     
1,364
     
1,615
     
1,499
 
FDIC expense
   
802
     
798
     
772
     
663
     
808
 
Advertising
   
654
     
1,019
     
583
     
468
     
451
 
Amortization of intangible assets
   
636
     
651
     
663
     
682
     
812
 
Loan collection and other real estate owned, net
   
384
     
956
     
706
     
663
     
590
 
Other
   
3,119
     
5,934
     
6,232
     
5,416
     
2,757
 
Total noninterest expense
 
$
72,143
   
$
75,105
   
$
72,869
   
$
71,419
   
$
67,888
 
Income before income tax expense
 
$
50,268
   
$
48,090
   
$
48,476
   
$
52,291
   
$
51,001
 
Income tax expense
   
11,142
     
10,780
     
11,043
     
11,995
     
11,155
 
Net income
 
$
39,126
   
$
37,310
   
$
37,433
   
$
40,296
   
$
39,846
 
Earnings Per Share
                                       
Basic
 
$
0.91
   
$
0.86
   
$
0.86
   
$
0.93
   
$
0.91
 
Diluted
 
$
0.90
   
$
0.86
   
$
0.86
   
$
0.92
   
$
0.91
 


12
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 - 2022
Q4 - 2021
Q3 - 2021
Q2 - 2021
Q1 - 2021
Assets
                                                                     
Short-term interest-bearing accounts
 
$
990,319
     
0.17
%
 
$
1,145,794
     
0.16
%
 
$
1,014,120
     
0.16
%
 
$
974,034
     
0.09
%
 
$
587,358
     
0.09
%
Securities - taxable
   
2,284,578
     
1.67
%
   
2,081,796
     
1.57
%
   
1,923,700
     
1.63
%
   
1,864,542
     
1.69
%
   
1,768,945
     
1.82
%
Securities - tax exempt
   
258,513
     
1.84
%
   
257,320
     
1.85
%
   
246,685
     
1.97
%
   
193,108
     
2.59
%
   
184,842
     
2.76
%
FRB and FHLB stock
   
25,026
     
1.98
%
   
25,149
     
2.74
%
   
25,154
     
1.91
%
   
25,115
     
2.67
%
   
25,606
     
2.45
%
Loans1 6
   
7,530,674
     
3.95
%
   
7,507,165
     
4.20
%
   
7,517,839
     
3.84
%
   
7,574,272
     
3.96
%
   
7,574,337
     
4.02
%
Total interest-earning assets
 
$
11,089,110
     
3.09
%
 
$
11,017,224
     
3.23
%
 
$
10,727,498
     
3.05
%
 
$
10,631,071
     
3.18
%
 
$
10,141,088
     
3.38
%
Other assets
   
947,578
             
982,136
             
1,019,797
             
971,681
             
960,994
         
Total assets
 
$
12,036,688
           
$
11,999,360
           
$
11,747,295
           
$
11,602,752
           
$
11,102,082
         
Liabilities and stockholders’ equity
                                                                         
Money market deposit accounts
 
$
2,720,338
     
0.15
%
 
$
2,678,477
     
0.16
%
 
$
2,580,570
     
0.19
%
 
$
2,605,767
     
0.21
%
 
$
2,484,120
     
0.23
%
NOW deposit accounts
   
1,583,091
     
0.05
%
   
1,551,846
     
0.05
%
   
1,442,678
     
0.05
%
   
1,454,751
     
0.05
%
   
1,358,955
     
0.05
%
Savings deposits
   
1,794,549
     
0.03
%
   
1,725,004
     
0.05
%
   
1,691,539
     
0.05
%
   
1,660,722
     
0.05
%
   
1,547,983
     
0.05
%
Time deposits
   
494,632
     
0.40
%
   
537,875
     
0.46
%
   
565,216
     
0.62
%
   
591,147
     
0.75
%
   
615,343
     
0.93
%
Total interest-bearing deposits
 
$
6,592,610
     
0.11
%
 
$
6,493,202
     
0.13
%
 
$
6,280,003
     
0.16
%
 
$
6,312,387
     
0.18
%
 
$
6,006,401
     
0.21
%
Federal funds purchased
   
-
     
-
     
65
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Repurchase agreements
 
$
72,768
     
0.09
%
   
97,389
     
0.11
%
   
99,703
     
0.11
%
   
95,226
     
0.13
%
   
109,904
     
0.16
%
Short-term borrowings
   
-
     
-
     
1
     
-
     
-
     
-
     
-
     
-
     
5,278
     
2.00
%
Long-term debt
   
13,979
     
2.52
%
   
14,004
     
2.49
%
   
14,029
     
2.52
%
   
14,053
     
2.51
%
   
19,913
     
2.53
%
Subordinated debt, net
   
98,531
     
5.59
%
   
98,422
     
5.48
%
   
98,311
     
5.48
%
   
98,204
     
5.55
%
   
98,095
     
5.62
%
Junior subordinated debt
   
101,196
     
2.20
%
   
101,196
     
2.03
%
   
101,196
     
2.03
%
   
101,196
     
2.08
%
   
101,196
     
2.12
%
Total interest-bearing liabilities
 
$
6,879,084
     
0.23
%
 
$
6,804,279
     
0.24
%
 
$
6,593,242
     
0.27
%
 
$
6,621,066
     
0.29
%
 
$
6,340,787
     
0.34
%
Demand deposits
   
3,710,124
             
3,719,070
             
3,676,883
             
3,542,176
             
3,319,024
         
Other liabilities
   
206,292
             
231,260
             
244,125
             
235,536
             
250,991
         
Stockholders’ equity
   
1,241,188
             
1,244,751
             
1,233,045
             
1,203,974
             
1,191,280
         
Total liabilities and stockholders’ equity
 
$
12,036,688