NORWICH, N.Y., Jan. 27, 2020 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported record net income and diluted earnings per share for the year ended December 31, 2019.

Net income for the year ended December 31, 2019 was $121.0 million, up 7.5% from $112.6 million for the prior year. Diluted earnings per share for the year ended December 31, 2019 was $2.74, as compared with $2.56 for the prior year, an increase of 7.0%.

Net income for the three months ended December 31, 2019 was $29.0 million, down 10.6% from $32.4 million for the third quarter of 2019 and up 1.1% from $28.7 million for the fourth quarter of 2018. Diluted earnings per share for the three months ended December 31, 2019 was $0.66, down 9.5% as compared with $0.73 for the prior quarter and up 1.5% from $0.65 for the fourth quarter of 2018.

Highlights:

  • Diluted earnings per share up 7.0% from prior year
  • Full year 2019 net income up 7.5% from 2018
  • Loan growth for the year ended December 31, 2019 of 3.6% and 6.9% for the fourth quarter, annualized, driven by commercial and residential real estate
  • Strong asset quality continued with nonperforming loans to total loans of 0.40% down 7 basis points from prior quarter
  • Tangible equity ratio of 8.84%, up 99 bps from prior year, and tangible book value per share of $19.03, up 14.2% from 2018

“We are pleased to report that NBT achieved a seventh straight year of record net income in 2019 along with a new annual EPS record,” said NBT President and CEO John H. Watt, Jr. “The best team in community banking maintained focus on the fundamentals of our core banking business, including low-cost deposit gathering and prudent loan growth, while advancing our strategic priorities and executing on technology and digital initiatives. Our strong balance sheet, disciplined approach to credit and risk management, and diversified fee businesses provide NBT with optionality as we continue to grow our company, both organically and by acquisition. In the second quarter of 2020, we intend to accelerate the growth of our well-established EPIC Retirement Plan Services business with the acquisition of Alliance Benefit Group of Illinois, Inc. of Peoria, bringing the number of plan participants we support nationwide to 250,000.”

Net interest income for the year ended 2019 was $311.6 million, up $5.9 million, or 1.9%, from 2018. The fully taxable equivalent (“FTE”) net interest margin of 3.58% for the year ended December 31, 2019, was comparable to 2018. Average interest-earning assets were up $144.8 million, or 1.7%, for the year ended December 31, 2019, as compared to the same period in 2018, driven by a $206.7 million increase in loans that was partially offset by an $89.9 million decrease in securities. Interest income increased $23.3 million, or 6.8%, due to the increase in earning assets combined with a 17 basis point (“bp”) improvement in loan yields. Interest expense was up $17.4 million, or 44.9% for the year ended December 31, 2019 as compared to the same period in 2018 as the cost of interest-bearing liabilities increased 29 bps, driven by interest-bearing deposit costs increasing 33 bps.

Net interest income was $77.2 million for the fourth quarter of 2019, down $0.9 million, or 1.1%, from the previous quarter. FTE net interest margin was 3.52% for the three months ended December 31, 2019, down 5 bps from the previous quarter, and interest income decreased $1.8 million, or 2.0%. The yield on average interest-earning assets decreased 9 bps to 4.13%, and average interest-earning assets were steady at $8.7 billion. The lower asset yield primarily reflects the impact of lower short-term rates on floating-rate loans, while average earning assets remained consistent driven by a smaller investment portfolio partially offset by an increase in loans. Interest expense was down $0.9 million, or 6.5%, due to a $31.3 million decrease in average interest-bearing liabilities from the prior quarter. The cost of interest-bearing liabilities decreased 6 bps to 0.90% for the quarter ended December 31, 2019, driven by a 19 bp decrease in short-term borrowings cost and a 4 bp decrease in interest-bearing deposit costs.

Noninterest income for the year ended December 31, 2019 was $144.0 million, up $19.3 million, or 15.4%, from the same period in 2018. Excluding net securities gains (losses), noninterest income for the year ended December 31, 2019 was $139.8 million, up $8.7 million or 6.6%, from the same period in 2018. The increase from the prior year was driven by higher other noninterest income primarily due to higher swap fee income, higher retirement plan administration fees due to a full year’s contribution from Retirement Plan Services, LLC (“RPS”), which was acquired in the second quarter of 2018, and higher ATM and debit card fees due to an increase in the number of accounts and usage.

Noninterest income for the three months ended December 31, 2019 was $36.2 million, down $3.5 million or 8.8%, from the prior quarter and up $10.3 million or 39.7%, from the fourth quarter of 2018. In the third quarter of 2019, the Company sold Visa Class B common stock for a gain of $4.0 million and in the fourth quarter of 2018, the Company restructured the investment portfolio by selling $109 million lower yielding bonds and reinvesting the proceeds in higher yielding bonds, which resulted in a $6.6 million loss on securities sold. Excluding net securities gains (losses), noninterest income for the three months ended December 31, 2019 was $36.1 million, up $0.4 million or 1.0%, from the prior quarter and up $3.2 million or 9.7%, from the fourth quarter of 2018. The increase from the prior quarter and from the fourth quarter of 2018 was primarily due to higher other noninterest income due primarily to higher swap fee income.

Noninterest expense for the year ended December 31, 2019 was $274.7 million, up $10.2 million or 3.8%, 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 as compared to the same period of 2018, partially offset by lower FDIC insurance expense. The increase in salaries and employee benefits was primarily due to the RPS acquisition in the second quarter of 2018 and $0.7 million in one-time charges related to efficiency initiatives and general wage and benefit increases. The $4.8 million increase in other noninterest expenses was due to $3.1 million in reorganization expenses incurred during the third quarter of 2019, primarily related to branch optimization strategies to improve future operating efficiencies and an increase in the amortization expense for pension plan actuarial costs. FDIC insurance expense decreased from 2018 due to receipt of the Small Bank Assessment Credit in 2019.

Noninterest expense for the three months ended December 31, 2019 was $70.3 million, up $0.5 million or 0.8%, from the prior quarter and up $1.4 million or 2.0%, from the fourth quarter of 2018. The increase from the prior quarter was primarily driven by an increase in professional fees and loan collection expenses, which were partially offset by lower other noninterest expenses due to the previously mentioned branch optimization that occurred during the third quarter of 2019. The increase from the fourth quarter of 2018 was primarily due to increases in salaries and employee benefits and loan collection, partially offset by lower FDIC insurance expense due to the previously mentioned receipt of the Small Bank Assessment Credit in 2019.

Income tax expense for the year ended December 31, 2019 was $34.4 million, up $10.0 million, or 40.8%, from the same period of 2018. The effective tax rate of 22.1% in 2019 was up from 17.8% for the same period in the prior year. The increase in income tax expense from the prior year was due to a $5.5 million tax benefit recorded in the fourth quarter of 2018 primarily related to one-time income tax return accounting method changes, combined with a higher level of taxable income.

Income tax expense for the three months ended December 31, 2019 was $8.2 million, down $1.2 million from the prior quarter and up $7.4 million from the fourth quarter of 2018. The effective tax rate of 22.0% for the fourth quarter of 2019 was down from 22.4% from the third quarter of 2019 and up from 2.5% from the fourth quarter of 2018. The decrease in income tax expense from the prior quarter was due to lower taxable income and the increase from the fourth quarter of 2018 primarily due to one-time income tax return accounting method changes during the fourth quarter of 2018.

Asset Quality

Net charge-offs of $25.0 million for the year ended December 31, 2019 were down compared to $25.8 million for the same period of 2018. Provision expense was $25.4 million for the year ended December 31, 2019, as compared with $28.8 million for the same period of 2018. Annualized net charge-offs to average loans for the year ended December 31, 2019 was 0.36%, as compared with 0.38% for the same period of 2018.

Net charge-offs of $5.4 million for the three months ended December 31, 2019 were down as compared to $6.1 million for the prior quarter and down compared to $6.8 million for the fourth quarter of 2018. Provision expense was lower at $6.0 million for the three months ended December 31, 2019, as compared with $6.3 million for the prior quarter and $6.5 million for the fourth quarter of 2018. Annualized net charge-offs to average loans for the fourth quarter of 2019 was 0.30%, down from 0.35% for the prior quarter and down from 0.39% for the fourth quarter of 2018.

Nonperforming loans to total loans was 0.40% at December 31, 2019, down 7 bps from 0.47% at September 30, 2019 and down 4 bps from 0.44% at December 31, 2018. Past due loans as a percentage of total loans was 0.49% at December 31, 2019, down from 0.57% at September 30, 2019 and down from 0.55% at December 31, 2018.

The allowance for loan losses totaled $73.0 million at December 31, 2019, compared to $72.4 million at September 30, 2019 and $72.5 million at December 31, 2018. The allowance for loan losses as a percentage of loans was 1.02% (1.06% excluding acquired loans) at December 31, 2019, compared to 1.03% (1.08% excluding acquired loans) at September 30, 2019 and 1.05% (1.10% excluding acquired loans) at December 31, 2018.

Balance Sheet

Total assets were $9.7 billion at December 31, 2019, up $159.6 million from December 31, 2018. Loans were $7.1 billion at December 31, 2019, up $248.4 million from December 31, 2018. In 2019, loan growth in commercial real estate and residential real estate was partially offset by run-off in consumer portfolios. Total deposits were $7.6 billion at December 31, 2019, up $219.6 million, or 3.0%, from December 31, 2018, reflecting growth in money market deposit accounts and non-interest-bearing demand accounts. Stockholders’ equity was $1.1 billion, representing a total equity-to-total assets ratio of 11.53% at December 31, 2019, compared with $1.0 billion or a total equity-to-total assets ratio of 10.65% at December 31, 2018. Tangible book value per share was $19.03 at December 31, 2019, an increase of 14.2% from December 31, 2018.

On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”). While certain key assumptions to be used in NBT’s CECL model and methodologies are being finalized, as well as certain review controls, the day-one impact of adopting CECL is not expected to be material to the Company’s total capital.

Dividend

The Board of Directors approved a first-quarter 2020 cash dividend of $0.27 per share at a meeting held today. The dividend will be paid on March 13, 2020 to shareholders of record as of February 28, 2020.

Other Events

On January 24, 2020, NBT subsidiary EPIC Retirement Plan Services, a full-service 401(k) recordkeeping firm, signed a definitive agreement to purchase the assets of Alliance Benefit Group of Illinois, Inc. (“ABGIL”). ABGIL is a retirement plan services company located in Peoria, Illinois that provides full-service recordkeeping, administration, fiduciary investment advice and plan design solutions to employers nationwide. This is NBT’s fifth retirement plan services acquisition since 2015. The addition of ABGIL will strengthen NBT’s presence in retirement services and bring the number of plan participants supported by NBT to 250,000 in all 50 states. The Company expects to complete the acquisition of ABGIL in the second quarter of 2020.

2020 Annual Meeting

NBT will be moving to a virtual shareholder meeting format, and the 2020 Annual Meeting of Shareholders will be hosted online on May 19, 2020. As technology enables new types of engagement, this virtual format will allow NBT to reach more shareholders, who will have the same opportunities to participate as in past in-person meetings. Details will be provided to shareholders with proxy materials in April 2020.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.7 billion at December 31, 2019. The Company primarily operates through NBT Bank, N.A., a full-service community bank and through two financial services companies. NBT Bank, N.A. has 146 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.epicrps.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 several 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 tax laws and accounting standards, including the estimated effects from the adoption of the CECL model on January 1, 2020, 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.

 
NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)
      
 2019
2018
Profitability:4th Q3rd Q2nd Q1st Q4th Q
Diluted earnings per share$ 0.66 $ 0.73 $ 0.69 $0.66 $0.65 
Weighted average diluted common shares outstanding 44,174,201  44,138,495  44,120,377  44,081,086  44,059,796 
Return on average assets (1) 1.20% 1.34% 1.28% 1.24% 1.20%
Return on average equity (1) 10.36% 11.83% 11.63% 11.52% 11.34%
Return on average tangible common equity (1)(3) 14.28% 16.43% 16.38% 16.45% 16.37%
Net interest margin (1)(2) 3.52% 3.57% 3.61% 3.64% 3.61%
      
 12 Months ended December 31,   
Profitability:20192018   
Diluted earnings per share$ 2.74 $2.56    
Weighted average diluted common shares outstanding 44,123,698  44,019,698    
Return on average assets 1.26% 1.20%   
Return on average equity 11.32% 11.49%   
Return on average tangible common equity (4) 15.85% 16.71%   
Net interest margin (2) 3.58% 3.58%   
      
(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
 4th Q3rd Q2nd Q1st Q4th Q
Net income$ 28,960 $32,379 $30,555 $29,127 $28,652 
Amortization of intangible assets (net of tax) 633  656  670  726  734 
Net income, excluding intangibles amortization$ 29,593 $33,035 $31,225 $29,853 $29,386 
      
Average stockholders' equity$ 1,109,225 $1,085,961 $1,053,750 $1,025,753 $1,002,822 
Less: average goodwill and other intangibles 287,268  288,077  288,930  289,913  290,854 
Average tangible common equity$ 821,957 $797,884 $764,820 $735,840 $711,968 
      
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
      
 12 Months ended December 31,   
 20192018   
Net income$ 121,021 $112,566    
Amortization of intangible assets (net of tax) 2,684  3,032    
Net income, excluding intangibles amortization$ 123,705 $115,598    
      
Average stockholders' equity$ 1,068,948 $980,005    
Less: average goodwill and other intangibles 288,539  288,273    
Average tangible common equity$ 780,409 $691,732    
      
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
 4th Q3rd Q2nd Q1st Q4th Q
Balance sheet data:     
Securities available for sale$ 975,340 $932,173 $979,696 $951,859 $998,496 
Securities held to maturity 630,074  678,435  744,601  780,565  783,599 
Net loans 7,063,133  6,941,444  6,891,108  6,818,907  6,815,204 
Total assets 9,715,925  9,661,386  9,635,718  9,533,510  9,556,363 
Total deposits 7,587,820  7,743,166  7,593,706  7,617,659  7,368,211 
Total borrowings 820,682  628,701  794,829  719,775  1,046,616 
Total liabilities 8,595,528  8,562,785  8,560,895  8,499,455  8,538,454 
Stockholders' equity 1,120,397  1,098,601  1,074,823  1,034,055  1,017,909 
      
Asset quality:     
Nonaccrual loans$ 25,174 $24,623 $24,669 $25,632 $25,487 
90 days past due and still accruing 3,717  8,342  2,387  3,335  5,085 
Total nonperforming loans 28,891  32,965  27,056  28,967  30,572 
Other real estate owned 1,458  2,144  2,203  2,222  2,441 
Total nonperforming assets 30,349  35,109  29,259  31,189  33,013 
Allowance for loan losses 72,965  72,365  72,165  71,405  72,505 
      
Asset quality ratios (total):     
Allowance for loan losses to total loans 1.02% 1.03% 1.04% 1.04% 1.05%
Total nonperforming loans to total loans 0.40% 0.47% 0.39% 0.42% 0.44%
Total nonperforming assets to total assets 0.31% 0.36% 0.30% 0.33% 0.35%
Allowance for loan losses to total nonperforming loans 252.55% 219.52% 266.72% 246.50% 237.16%
Past due loans to total loans 0.49% 0.57% 0.52% 0.52% 0.55%
Net charge-offs to average loans (1) 0.30% 0.35% 0.38% 0.41% 0.39%
      
Asset quality ratios (originated) (2):     
Allowance for loan losses to loans 1.06% 1.08% 1.08% 1.09% 1.10%
Nonperforming loans to loans 0.39% 0.47% 0.38% 0.41% 0.43%
Allowance for loan losses to nonperforming loans 269.90% 231.21% 287.67% 265.63% 254.92%
Past due loans to loans 0.48% 0.56% 0.52% 0.52% 0.56%
      
Capital:     
Equity to assets 11.53% 11.37% 11.15% 10.85% 10.65%
Tangible equity ratio (3) 8.84% 8.65% 8.41% 8.06% 7.85%
Book value per share$ 25.58 $25.09 $24.56 $23.64 $23.31 
Tangible book value per share (4)$ 19.03 $18.52 $17.97 $17.02 $16.66 
Tier 1 leverage ratio 10.33% 10.15% 9.88% 9.62% 9.52%
Common equity tier 1 capital ratio 11.29% 11.14% 10.95% 10.69% 10.49%
Tier 1 capital ratio 12.56% 12.42% 12.24% 11.99% 11.79%
Total risk-based capital ratio 13.52% 13.38% 13.21% 12.98% 12.78%
Common stock price (end of period)$ 40.56 $36.59 $37.51 $36.01 $34.59 
      
(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)
   
 December 31,December 31,
Assets20192018
Cash and due from banks$ 170,595 $175,550 
Short-term interest bearing accounts 46,248  5,405 
Equity securities, at fair value 27,771  23,053 
Securities available for sale, at fair value 975,340  998,496 
Securities held to maturity (fair value $641,262 and $778,675, respectively) 630,074  783,599 
Federal Reserve and Federal Home Loan Bank stock 44,620  53,229 
Loans held for sale 11,731  6,943 
Loans 7,136,098  6,887,709 
Less allowance for loan losses 72,965  72,505 
Net loans$ 7,063,133 $6,815,204 
Premises and equipment, net 75,631  78,970 
Goodwill 274,769  274,769 
Intangible assets, net 12,020  15,599 
Bank owned life insurance 181,748  177,479 
Other assets 202,245  148,067 
Total assets$ 9,715,925 $9,556,363 
   
Liabilities and stockholders' equity  
Demand (noninterest bearing)$ 2,414,383 $2,361,099 
Savings, NOW and money market 4,312,244  4,076,434 
Time 861,193  930,678 
Total deposits$ 7,587,820 $7,368,211 
Short-term borrowings 655,275  871,696 
Long-term debt 64,211  73,724 
Junior subordinated debt 101,196  101,196 
Other liabilities 187,026  123,627 
Total liabilities$ 8,595,528 $8,538,454 
   
Total stockholders' equity$ 1,120,397 $1,017,909 
   
Total liabilities and stockholders' equity$ 9,715,925 $9,556,363 
   


 
NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
     
 Three Months EndedTwelve Months Ended
 December 31,December 31,
 2019
20182019
2018
Interest, fee and dividend income    
Interest and fees on loans$ 79,800 $78,963 $ 321,474 $300,827 
Securities available for sale 5,639  6,332  23,303  26,920 
Securities held to maturity 4,213  4,344  19,105  13,242 
Other 924  885  3,652  3,266 
Total interest, fee and dividend income$ 90,576 $90,524 $ 367,534 $344,255 
Interest expense    
Deposits$ 10,181 $6,977 $ 39,986 $22,144 
Short-term borrowings 1,707  3,131  9,693  10,552 
Long-term debt 484  431  1,875  1,790 
Junior subordinated debt 1,021  1,110  4,425  4,140 
Total interest expense$ 13,393 $11,649 $ 55,979 $38,626 
Net interest income$ 77,183 $78,875 $ 311,555 $305,629 
Provision for loan losses 6,004  6,528  25,412  28,828 
Net interest income after provision for loan losses$ 71,179 $72,347 $ 286,143 $276,801 
Noninterest income    
Insurance and other financial services revenue$ 5,891 $5,843 $ 25,006 $24,345 
Service charges on deposit accounts 4,361  4,503  17,151  17,224 
ATM and debit card fees 5,935  5,704  23,893  22,699 
Retirement plan administration fees 7,218  7,113  30,388  26,992 
Trust 4,673  4,573  19,164  19,524 
Bank owned life insurance income 1,236  1,239  5,355  5,091 
Net securities gains (losses) 189  (6,916) 4,213  (6,341)
Other 6,738  3,887  18,853  15,228 
Total noninterest income$ 36,241 $25,946 $ 144,023 $124,762 
Noninterest expense    
Salaries and employee benefits$ 39,592 $38,998 $ 156,867 $151,685 
Occupancy 5,653  5,284  22,706  22,318 
Data processing and communications 4,719  4,431  18,318  17,652 
Professional fees and outside services 4,223  3,968  14,785  14,376 
Equipment 4,821  4,529  18,583  17,037 
Office supplies and postage 1,744  1,564  6,579  6,204 
FDIC expense -  1,135  1,946  4,651 
Advertising 952  1,006  2,773  2,782 
Amortization of intangible assets 844  978  3,579  4,042 
Loan collection and other real estate owned, net 1,436  738  4,158  4,217 
Other 6,310  6,273  24,440  19,597 
Total noninterest expense$ 70,294 $68,904 $ 274,734 $264,561 
Income before income tax expense$ 37,126 $29,389 $ 155,432 $137,002 
Income tax expense 8,166  737  34,411  24,436 
Net income$ 28,960 $28,652 $ 121,021 $112,566 
Earnings Per Share    
Basic$ 0.66 $0.66 $ 2.76 $2.58 
Diluted$ 0.66 $0.65 $ 2.74 $2.56 
     


 
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
      
 2019
2018
 4th Q3rd Q2nd Q1st Q4th Q
Interest, fee and dividend income     
Interest and fees on loans$ 79,800 $81,082 $81,271 $79,321 $78,963 
Securities available for sale 5,639  5,711  6,031  5,922  6,332 
Securities held to maturity 4,213  4,586  5,089  5,217  4,344 
Other 924  1,002  842  884  885 
Total interest, fee and dividend income$ 90,576 $92,381 $93,233 $91,344 $90,524 
Interest expense     
Deposits$ 10,181 $10,745 $10,234 $8,826 $6,977 
Short-term borrowings 1,707  1,989  2,760  3,237  3,131 
Long-term debt 484  498  471  422  431 
Junior subordinated debt 1,021  1,095  1,141  1,168  1,110 
Total interest expense$ 13,393 $14,327 $14,606 $13,653 $11,649 
Net interest income$ 77,183 $78,054 $78,627 $77,691 $78,875 
Provision for loan losses 6,004  6,324  7,277  5,807  6,528 
Net interest income after provision for loan losses$ 71,179 $71,730 $71,350 $71,884 $72,347 
Noninterest income     
Insurance and other financial services revenue$ 5,891 $6,421 $5,938 $6,756 $5,843 
Service charges on deposit accounts 4,361  4,330  4,224  4,236  4,503 
ATM and debit card fees 5,935  6,277  6,156  5,525  5,704 
Retirement plan administration fees 7,218  7,600  7,836  7,734  7,113 
Trust 4,673  5,209  4,731  4,551  4,573 
Bank owned life insurance income 1,236  1,556  1,186  1,377  1,239 
Net securities gains (losses) 189  4,036  (69) 57  (6,916)
Other 6,738  4,291  4,239  3,585  3,887 
Total noninterest income$ 36,241 $39,720 $34,241 $33,821 $25,946 
Noninterest expense     
Salaries and employee benefits$ 39,592 $39,352 $38,567 $39,356 $38,998 
Occupancy 5,653  5,335  5,443  6,275  5,284 
Data processing and communications 4,719  4,492  4,693  4,414  4,431 
Professional fees and outside services 4,223  3,535  3,359  3,668  3,968 
Equipment 4,821  4,487  4,518  4,757  4,529 
Office supplies and postage 1,744  1,667  1,577  1,591  1,564 
FDIC expense (credit) -  (20) 949  1,017  1,135 
Advertising 952  677  641  503  1,006 
Amortization of intangible assets 844  874  893  968  978 
Loan collection and other real estate owned, net 1,436  976  961  785  738 
Other 6,310  8,374  4,630  5,126  6,273 
Total noninterest expense$ 70,294 $69,749 $66,231 $68,460 $68,904 
Income before income tax expense$ 37,126 $41,701 $39,360 $37,245 $29,389 
Income tax expense 8,166  9,322  8,805  8,118  737 
Net income$ 28,960 $32,379 $30,555 $29,127 $28,652 
Earnings Per Share     
Basic$ 0.66 $0.74 $0.70 $0.67 $0.66 
Diluted$ 0.66 $0.73 $0.69 $0.66 $0.65 
      


 
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 - 2019Q3 - 2019Q2 - 2019Q1 - 2019Q4 - 2018
Assets           
Short-term interest bearing accounts $ 51,6132.43%$57,5301.95%$25,7831.28%$9,0654.07%$3,7805.25%
Securities available for sale (1) (3)  942,3022.37% 940,2562.41% 981,0792.47% 984,7042.45% 1,104,1982.29%
Securities held to maturity (1) (3)  651,3052.73% 698,6172.77% 770,6512.83% 782,5702.90% 688,8402.73%
Investment in FRB and FHLB Banks  37,8426.37% 40,5257.04% 46,1796.60% 49,1526.54% 47,6896.95%
Loans (2) (3)  7,055,2884.49% 6,987,4764.61% 6,958,2994.69% 6,886,6724.68% 6,876,3414.56%
Total interest earning assets $ 8,738,3504.13%$8,724,4044.22%$8,781,9914.28%$8,712,1634.28%$8,720,8484.14%
Other assets  861,909  852,616  816,748  795,585  769,302 
Total assets $ 9,600,259 $9,577,020 $9,598,739 $9,507,748 $9,490,150 
            
Liabilities and stockholders' equity           
Money market deposit accounts $ 2,057,6781.16%$2,015,2971.24%$1,916,0451.16%$1,804,0530.99%$1,745,9800.65%
NOW deposit accounts  1,064,1930.13% 1,056,0010.13% 1,127,4130.13% 1,135,2130.16% 1,166,3830.18%
Savings deposits  1,251,4320.06% 1,274,7930.06% 1,282,0840.06% 1,252,0420.06% 1,250,7030.06%
Time deposits  853,3531.69% 893,8371.75% 953,6981.73% 942,4571.64% 921,2521.47%
Total interest bearing deposits $ 5,226,6560.77%$5,239,9280.81%$5,279,2400.78%$5,133,7650.70%$5,084,3180.54%
Short-term borrowings  475,3321.42% 490,6941.61% 620,8981.78% 712,3061.84% 724,6931.71%
Long-term debt  81,6132.35% 84,2502.35% 82,4142.29% 73,7072.32% 73,7352.32%
Junior subordinated debt  101,1964.00% 101,1964.29% 101,1964.52% 101,1964.68% 101,1964.35%
Total interest bearing liabilities $ 5,884,7970.90%$5,916,0680.96%$6,083,7480.96%$6,020,9740.92%$5,983,9420.77%
Demand deposits  2,406,563  2,389,617  2,298,867  2,309,531  2,373,235 
Other liabilities  199,674  185,374  162,374  151,490  130,151 
Stockholders' equity  1,109,225  1,085,961  1,053,750  1,025,753  1,002,822 
Total liabilities and stockholders' equity $ 9,600,259 $9,577,020 $9,598,739 $9,507,748 $9,490,150 
            
Interest rate spread  3.23% 3.26% 3.32% 3.36% 3.37%
Net interest margin (FTE) (3)  3.52% 3.57% 3.61% 3.64% 3.61%
            
(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 $349, $374, $445, $500 and $535 for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.
 


 
NBT Bancorp Inc. and Subsidiaries
Average Year-to-Date Balance Sheets
(unaudited, dollars in thousands)
        
  Average Yield/Average Yield/
  BalanceInterestRates BalanceInterestRates
Twelve Months ended December 31,  2019
2018
Assets       
Short-term interest bearing accounts $ 36,174$ 7732.14%$3,377$1835.42%
Securities available for sale (1) (3)  961,909 23,3342.43% 1,210,013 27,0812.24%
Securities held to maturity (1) (3)  725,352 20,4102.81% 567,117 14,6572.58%
Investment in FRB and FHLB Banks  43,385 2,8796.64% 48,214 3,0836.39%
Loans (2) (3)  6,972,438 321,8054.62% 6,765,748 301,2584.45%
Total interest earning assets $ 8,739,258$ 369,2014.22%$8,594,469$346,2624.03%
Other assets  831,954   764,670  
Total assets $ 9,571,212  $9,359,139  
        
Liabilities and stockholders' equity       
Money market deposit accounts $ 1,949,147$ 22,2571.14%$1,706,823$8,3140.49%
NOW deposit accounts  1,095,402 1,5180.14% 1,191,008 1,8940.16%
Savings deposits  1,265,112 7330.06% 1,266,970 7250.06%
Time deposits  910,546 15,4781.70% 866,388 11,2111.29%
Total interest bearing deposits $ 5,220,207$ 39,9860.77%$5,031,189$22,1440.44%
Short-term borrowings  573,927 9,6931.69% 727,635 10,5521.45%
Long-term debt  80,528 1,8752.33% 80,195 1,7902.23%
Junior subordinated debt  101,196 4,4254.37% 101,196 4,1404.09%
Total interest bearing liabilities $ 5,975,858$ 55,9790.94%$5,940,215$38,6260.65%
Demand deposits  2,351,515   2,321,264  
Other liabilities  174,891   117,655  
Stockholders' equity  1,068,948   980,005  
Total liabilities and stockholders' equity $ 9,571,212  $9,359,139  
Net interest income (FTE)  $ 313,222  $307,636 
Interest rate spread   3.28%  3.38%
Net interest margin (FTE) (3)   3.58%  3.58%
Taxable equivalent adjustment  $ 1,667  $2,007 
Net interest income  $ 311,555  $305,629 
        
(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
 4th Q3rd Q2nd Q1st Q4th Q
Commercial$ 1,302,209 $1,317,649 $1,299,784 $1,306,551 $1,291,568 
Commercial real estate 2,142,057  2,033,552  2,025,280  1,943,931  1,930,742 
Residential real estate mortgages 1,445,156  1,416,920  1,404,079  1,390,411  1,380,836 
Dealer finance 1,193,635  1,195,783  1,189,670  1,191,111  1,216,144 
Specialty lending 542,063  528,505  519,974  529,144  524,928 
Home equity 444,082  452,535  456,754  463,582  474,566 
Other consumer 66,896  68,865  67,732  65,582  68,925 
Total loans$ 7,136,098 $7,013,809 $6,963,273 $6,890,312 $6,887,709 
      

Contact:

John H. Watt, Jr., President and CEO
John V. Moran, Executive Vice President and CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6589