NBT Bancorp Inc. Announces Net Income of $32.4 Million and Diluted Earnings per Share of $0.73; Announces Dividend Increase

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NORWICH, N.Y., Oct. 28, 2019 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. ("NBT" or the "Company") NBTB reported net income and diluted earnings per share for both the three and nine months ended September 30, 2019.

Net income for the three months ended September 30, 2019 was $32.4 million, up 6.0% from $30.6 million for the second quarter of 2019 and up 8.6% from $29.8 million for the third quarter of 2018. Diluted earnings per share for the three months ended September 30, 2019 was $0.73, as compared with $0.69 for the prior quarter, an increase of 5.8%, and $0.68 for the third quarter of 2018, an increase of 7.4%.

Net income for the nine months ended September 30, 2019 was $92.1 million, up 9.7% from $83.9 million for the same period last year. Diluted earnings per share for the nine months ended September 30, 2019 was $2.09, as compared with $1.91 for the same period in 2018, an increase of 9.4%.

The third quarter and year-to-date results include a $4.0 million realized gain on the sale of all of NBT's Visa Class B shares. The realized gain was substantially offset by targeted branch optimization and employee initiatives that resulted in one-time costs in noninterest expense. These initiatives are expected to create future operating efficiencies that will be redeployed in critical technology investments supporting our digital strategy.

Highlights:

  • Announced a 3.8% increase in the quarterly dividend
  • Quarterly diluted earnings per share up 5.8% from the prior quarter and up 7.4% from prior year
  • Quarter-to-date net income up 6.0% from the prior quarter and up 8.6% from prior year
  • FTE net interest margin of 3.61% for the nine months ended September 30, 2019, up 4 bps from 2018
  • Tangible equity ratio of 8.65%, up 106 bps from the third quarter of 2018
  • Board reauthorized a stock repurchase program

"The team at NBT continued to drive earnings growth with year-over-year earnings per share and net income up over 9% despite a challenging interest rate environment," said NBT President and CEO John H. Watt, Jr. "Our disciplined approach to the allocation of capital remains a priority that will drive ongoing implementation of our strategic growth and digital strategies now and in the years to come. In addition, our capital allocation plans include a 3.8% increase to the quarterly dividend to $0.27 per share."

Net interest income was $78.1 million for the third quarter of 2019, down $0.6 million, or 0.7%, from the previous quarter. The fully taxable equivalent ("FTE") net interest margin was 3.57% for the three months ended September 30, 2019, down 4 basis points ("bps") from the previous quarter and interest income decreased $0.9 million, or 0.9%. The yield on average interest-earning assets decreased 6 bps to 4.22%, and average interest-earning assets decreased $58 million from the prior quarter to $8.7 billion. The lower asset yield primarily reflects the impact of lower short-term rates on floating-rate loans, while contraction in average earning assets was driven by a smaller investment portfolio. Interest expense was down $0.3 million, or 1.9%, due to a $168 million decrease in average interest-bearing liabilities from the prior quarter. The cost of interest-bearing liabilities remained comparable at 0.96% for the quarter ended September 30, 2019, driven by the 17 bp decrease in short-term borrowings cost, offset by the 3 bp increase in interest-bearing deposit costs.

Net interest income was $78.1 million for the third quarter of 2019, up $0.5 million, or 0.7%, from the third quarter of 2018. The FTE net interest margin of 3.57% was comparable to the third quarter of 2018. Interest income increased $4.2 million, or 4.7%, as the yield on average interest-earning assets increased 17 bps from the same period in 2018, and average interest-earning assets increased $42.3 million, or 0.5%, primarily due to a $147.9 million increase in average loans. Interest expense increased $3.7 million, as the cost of interest-bearing liabilities increased 25 bps, driven by interest-bearing deposit costs increasing 33 bps.

Net interest income for the first nine months of 2019 was $234.4 million, up $7.6 million, or 3.4%, from the same period in 2018. FTE net interest margin of 3.61% for the nine months ended September 30, 2019, was up from 3.57% for the same period in 2018. Average interest-earning assets were up $187.7 million, or 2.2%, for the nine months ended September 30, 2019, as compared to the same period in 2018, driven by a $216.0 million increase in loans. Interest income increased $23.2 million, or 9.2%, due to the increase in earning assets combined with a 25 bp improvement in loan yields. Interest expense was up $15.6 million, for the nine months ended September 30, 2019 as compared to the same period in 2018 as the cost of interest-bearing liabilities increased 34 bps, driven by interest-bearing deposit costs increasing 36 bps combined with a 40 bp increase in short-term borrowing costs. The Federal Reserve reduced its target fed funds rate twice in the third quarter of 2019 by a total of 50 bps. Prior to the Federal Reserve's change in policy, the Company's full-cycle deposit beta during the period of policy tightening from December 2015 through July 2019 was 15.2%. The Company's average cost of deposits increased by 34 bps versus the 225 bps increase in the fed funds rate.

Noninterest income for the three months ended September 30, 2019 was $39.7 million, up $5.5 million, or 16.0%, from the prior quarter and up $6.3 million, or 19.0%, from the third quarter of 2018. In the third quarter of 2019, the Company sold Visa Class B common stock for a gain of $4.0 million. Excluding net securities gains (losses), noninterest income for the three months ended September 30, 2019 would have been $35.7 million, up $1.4 million, or 4.0%, from the prior quarter and up $2.7 million, or 8.2%, from the third quarter of 2018. The increase from the prior quarter was primarily driven by higher insurance and other finance services revenue along with higher trust income. The increase from the third quarter of 2018 was primarily due to higher other noninterest income due primarily to higher swap fee income.

Noninterest income for the nine months ended September 30, 2019 was $107.8 million, up $9.0 million, or 9.1%, from the same period in 2018. Excluding net securities gains, noninterest income for the nine months ended September 30, 2019 would have been $103.8 million, up $5.5 million, or 5.6%, 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.

Noninterest expense for the three months ended September 30, 2019 was $69.7 million, up $3.5 million, or 5.3%, from the prior quarter and up $3.3 million, or 4.9%, from the third quarter of 2018. The increase from the prior quarter and the third quarter of 2018 was primarily driven by higher other noninterest expense items and increases in salaries and employee benefits, partially offset by lower FDIC insurance expense. Salaries and employee benefits expense increased from the prior quarter and the third quarter of 2018 due to wage increases and $0.7 million in one-time charges related to efficiency initiatives. FDIC insurance expense decreased from the prior quarter and the third quarter of 2018 due to receipt of the Small Bank Assessment Credit in the third quarter of 2019. Other noninterest expense increased from the prior quarter and the third quarter of 2018 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.

Noninterest expense for the nine months ended September 30, 2019 was $204.4 million, up $8.8 million, or 4.5%, 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 nine months of 2019 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, the previously mentioned $0.7 million in one-time charges and general wage and benefit increases. The $4.8 million increase in other noninterest expenses was due to the $3.1 million in reorganization expenses previously mentioned and an increase in the amortization expense for pension plan actuarial costs.

Income tax expense for the three months ended September 30, 2019 was $9.3 million, up $0.5 million from the prior quarter and up $0.7 million from the third quarter of 2018. The effective tax rate of 22.4% for the third quarter of 2019 was comparable to the second quarter of 2019 and to the third quarter of 2018. The increase in income tax expense from the prior quarter and from the third quarter of 2018 was primarily due to a higher level of taxable income.

Income tax expense for the nine months ended September 30, 2019 was $26.2 million, up $2.5 million, or 10.7%, from the same period of 2018. The effective tax rate of 22.2% for the first nine months of 2019 was up from 22.0% 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 $6.1 million for the three months ended September 30, 2019 were down as compared to $6.5 million for the prior quarter and up compared to $5.7 million for the third quarter of 2018. Provision expense was lower at $6.3 million for the three months ended September 30, 2019, as compared with $7.3 million for the prior quarter and up from $6.0 million for the third quarter of 2018. Annualized net charge-offs to average loans for the third quarter of 2019 was 0.35%, down from 0.38% for the prior quarter and up from 0.33% for the third quarter of 2018.

Net charge-offs of $19.5 million for the nine months ended September 30, 2019 were up compared to $19.0 million for the same period of 2018. Provision expense was $19.4 million for the nine months ended September 30, 2019, as compared with $22.3 million for the same period of 2018. Annualized net charge-offs to average loans for the first nine months of 2019 was 0.38%, comparable to the first nine months of 2018.

Nonperforming loans to total loans was 0.47% at September 30, 2019, up 8 bps from 0.39% at June 30, 2019 and up 6 bps from 0.41% at September 30, 2018. Past due loans as a percentage of total loans was 0.57% at September 30, 2019, up from 0.52% at June 30, 2019 and up from 0.53% at September 30, 2018. The increase in nonperforming and past due loans to total loans primarily resulted from a commercial real estate relationship migrating to over ninety days past due during the quarter. The loan is still accruing interest and is well secured by underlying collateral.

The allowance for loan losses totaled $72.4 million at September 30, 2019, compared to $72.2 million at June 30, 2019 and $72.8 million at September 30, 2018. The allowance for loan losses as a percentage of loans was 1.03% (1.08% excluding acquired loans) at September 30, 2019, compared to 1.04% (1.08% excluding acquired loans) at June 30, 2019 and 1.06% (1.11% excluding acquired loans) at September 30, 2018.

Balance Sheet

Total assets were $9.7 billion at September 30, 2019, up $105.0 million from December 31, 2018. Loans were $7.0 billion at September 30, 2019, up $126.1 million from December 31, 2018. In the first nine months of 2019, loan growth in commercial real estate and residential real estate was partially offset by run-off in our consumer portfolios. Total deposits were $7.7 billion at September 30, 2019, up $375.0 million, or 5.1%, 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 11.37% at September 30, 2019, compared with $1.0 billion or a total equity-to-total assets ratio of 10.65% at December 31, 2018.

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Stock Repurchase Program

On October 28, 2019, the Board of Directors authorized a repurchase program for NBT to repurchase up to an additional 1,000,000 shares of its outstanding common stock. This plan expires on December 31, 2021.

Dividend

The Board of Directors approved a fourth-quarter 2019 cash dividend of $0.27 per share at a meeting held today. The dividend, which represents a $0.01, or 3.8%, increase, will be paid on December 13, 2019 to shareholders of record as of November 29, 2019.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $9.7 billion at September 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 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 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.

  
  
NBT Bancorp Inc. and Subsidiaries 
Selected Financial Data 
(unaudited, dollars in thousands except per share data) 
       
  2019  2018  
Profitability:3rd Q2nd Q1st Q4th Q3rd Q 
Diluted earnings per share$ 0.73 $ 0.69 $0.66 $0.65 $0.68  
Weighted average diluted common shares outstanding 44,138,495  44,120,377  44,081,086  44,059,796  44,050,557  
Return on average assets (1) 1.34% 1.28% 1.24% 1.20% 1.25% 
Return on average equity (1) 11.83% 11.63% 11.52% 11.34% 11.96% 
Return on average tangible common equity (1)(3) 16.43% 16.38% 16.45% 16.37% 17.42% 
Net interest margin (1)(2) 3.57% 3.61% 3.64% 3.61% 3.57% 
                 
 9 Months ended September 30,    
Profitability: 2019  2018     
Diluted earnings per share$ 2.09 $1.91     
Weighted average diluted common shares outstanding 44,108,467  44,009,385     
Return on average assets (1) 1.29% 1.20%    
Return on average equity (1) 11.66% 11.54%    
Return on average tangible common equity (1)(4) 16.42% 16.83%    
Net interest margin (1)(2) 3.61% 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  
 3rd Q2nd Q1st Q4th Q3rd Q 
Net income$ 32,379 $30,555 $29,127 $28,652 $29,807  
Amortization of intangible assets (net of tax) 656  670  726  734  791  
Net income, excluding intangibles amortization$ 33,035 $31,225 $29,853 $29,386 $30,598  
       
Average stockholders' equity$ 1,085,961 $1,053,750 $1,025,753 $1,002,822 $988,551  
Less: average goodwill and other intangibles 288,077  288,930  289,913  290,854  291,814  
Average tangible common equity$ 797,884 $764,820 $735,840 $711,968 $696,737  
       
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: 
                 
       
 9 Months ended September 30,    
  2019  2018     
Net income$ 92,061 $83,914     
Amortization of intangible assets (net of tax) 2,051  2,298     
Net income, excluding intangibles amortization$ 94,112 $86,212     
       
Average stockholders' equity$ 1,055,375 $972,316     
Less: average goodwill and other intangibles 288,967  287,403     
Average tangible common equity$ 766,408 $684,913     
       
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  
 3rd Q2nd Q1st Q4th Q3rd Q 
Balance sheet data:      
Securities available for sale$ 932,173 $979,696 $951,859 $998,496 $1,101,074  
Securities held to maturity 678,435  744,601  780,565  783,599  659,949  
Net loans 6,941,444  6,891,108  6,818,907  6,815,204  6,814,457  
Total assets 9,661,386  9,635,718  9,533,510  9,556,363  9,547,284  
Total deposits 7,743,166  7,593,706  7,617,659  7,368,211  7,441,290  
Total borrowings 628,701  794,829  719,775  1,046,616  986,656  
Total liabilities 8,562,785  8,560,895  8,499,455  8,538,454  8,553,129  
Stockholders' equity 1,098,601  1,074,823  1,034,055  1,017,909  994,155  
                 
Asset quality:                
Nonaccrual loans$ 24,623 $24,669 $25,632 $25,487 $23,301  
90 days past due and still accruing 8,342  2,387  3,335  5,085  4,734  
Total nonperforming loans 32,965  27,056  28,967  30,572  28,035  
Other real estate owned 2,144  2,203  2,222  2,441  3,271  
Total nonperforming assets 35,109  29,259  31,189  33,013  31,306  
Allowance for loan losses 72,365  72,165  71,405  72,505  72,805  
                 
Asset quality ratios (total):                
Allowance for loan losses to total loans 1.03% 1.04% 1.04% 1.05% 1.06% 
Total nonperforming loans to total loans 0.47% 0.39% 0.42% 0.44% 0.41% 
Total nonperforming assets to total assets 0.36% 0.30% 0.33% 0.35% 0.33% 
Allowance for loan losses to total nonperforming loans 219.52% 266.72% 246.50% 237.16% 259.69% 
Past due loans to total loans 0.57% 0.52% 0.52% 0.55% 0.53% 
Net charge-offs to average loans (1) 0.35% 0.38% 0.41% 0.39% 0.33% 
                 
Asset quality ratios (originated) (2):                
Allowance for loan losses to loans 1.08% 1.08% 1.09% 1.10% 1.11% 
Nonperforming loans to loans 0.47% 0.38% 0.41% 0.43% 0.39% 
Allowance for loan losses to nonperforming loans 231.21% 287.67% 265.63% 254.92% 285.86% 
Past due loans to loans 0.56% 0.52% 0.52% 0.56% 0.53% 
                 
Capital:                
Equity to assets 11.37% 11.15% 10.85% 10.65% 10.41% 
Tangible equity ratio (3) 8.65% 8.41% 8.06% 7.85% 7.59% 
Book value per share$ 25.09 $24.56 $23.64 $23.31 $22.77  
Tangible book value per share (4)$ 18.52 $17.97 $17.02 $16.66 $16.10  
Tier 1 leverage ratio 10.15% 9.88% 9.62% 9.52% 9.36% 
Common equity tier 1 capital ratio 11.14% 10.95% 10.69% 10.49% 10.28% 
Tier 1 capital ratio 12.42% 12.24% 11.99% 11.79% 11.58% 
Total risk-based capital ratio 13.38% 13.21% 12.98% 12.78% 12.58% 
Common stock price (end of period)$ 36.59 $37.51 $36.01 $34.59 $38.38  
                 
(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) 
    
 September 30,
December 31,
 
Assets20192018 
Cash and due from banks$ 217,639$175,550 
Short-term interest bearing accounts 56,457 5,405 
Equity securities, at fair value 26,818 23,053 
Securities available for sale, at fair value 932,173 998,496 
Securities held to maturity (fair value $691,189 and $778,675, respectively) 678,435 783,599 
Federal Reserve and Federal Home Loan Bank stock 37,490 53,229 
Loans held for sale 17,986 6,943 
Loans 7,013,809 6,887,709 
Less allowance for loan losses 72,365 72,505 
Net loans$ 6,941,444$6,815,204 
Premises and equipment, net 75,708 78,970 
Goodwill 274,769 274,769 
Intangible assets, net 12,864 15,599 
Bank owned life insurance 180,513 177,479 
Other assets 209,090 148,067 
Total assets$ 9,661,386$9,556,363 
      
Liabilities and stockholders' equity     
Demand (noninterest bearing)$ 2,477,657$2,361,099 
Savings, NOW and money market 4,405,218 4,076,434 
Time 860,291 930,678 
Total deposits$ 7,743,166$7,368,211 
Short-term borrowings 443,266 871,696 
Long-term debt 84,239 73,724 
Junior subordinated debt 101,196 101,196 
Other liabilities 190,918 123,627 
Total liabilities$ 8,562,785$8,538,454 
      
Total stockholders' equity$ 1,098,601$1,017,909 
      
Total liabilities and stockholders' equity$ 9,661,386$9,556,363 
    
    


NBT Bancorp Inc. and Subsidiaries  
Consolidated Statements of Income 
(unaudited, dollars in thousands except per share data) 
      
 Three Months EndedNine Months Ended 
 September 30,September 30, 
  2019  2018 2019 2018 
Interest, fee and dividend income     
Interest and fees on loans$ 81,082 $77,249$ 241,674$221,864 
Securities available for sale 5,711  6,659 17,664 20,588 
Securities held to maturity 4,586  3,462 14,892 8,898 
Other 1,002  834 2,728 2,381 
Total interest, fee and dividend income$ 92,381 $88,204$ 276,958$253,731 
Interest expense     
Deposits$ 10,745 $6,157$ 29,805$15,167 
Short-term borrowings 1,989  3,000 7,986 7,421 
Long-term debt 498  431 1,391 1,359 
Junior subordinated debt 1,095  1,089 3,404 3,030 
Total interest expense$ 14,327 $10,677$ 42,586$26,977 
Net interest income$ 78,054 $77,527$ 234,372$226,754 
Provision for loan losses 6,324  6,026 19,408 22,300 
Net interest income after provision for loan losses$ 71,730 $71,501$ 214,964$204,454 
Noninterest income     
Insurance and other financial services revenue$ 6,421 $6,172$ 19,115$18,502 
Service charges on deposit accounts 4,330  4,503 12,790 12,721 
ATM and debit card fees 6,277  5,906 17,958 16,995 
Retirement plan administration fees 7,600  7,244 23,170 19,879 
Trust 5,209  4,808 14,491 14,951 
Bank owned life insurance income 1,556  1,288 4,119 3,852 
Net securities gains 4,036  412 4,024 575 
Other 4,291  3,048 12,115 11,341 
Total noninterest income$ 39,720 $33,381$ 107,782$98,816 
Noninterest expense     
Salaries and employee benefits$ 39,352 $38,394$ 117,275$112,687 
Occupancy 5,335  5,380 17,053 17,034 
Data processing and communications 4,492  4,434 13,599 13,221 
Professional fees and outside services 3,535  3,580 10,562 10,408 
Equipment 4,487  4,319 13,762 12,508 
Office supplies and postage 1,667  1,563 4,835 4,640 
FDIC (credit) expense (20) 1,223 1,946 3,516 
Advertising 677  739 1,821 1,776 
Amortization of intangible assets 874  1,054 2,735 3,064 
Loan collection and other real estate owned, net 976  1,234 2,722 3,479 
Other 8,374  4,577 18,130 13,324 
Total noninterest expense$ 69,749 $66,497$ 204,440$195,657 
Income before income tax expense$ 41,701 $38,385$ 118,306$107,613 
Income tax expense 9,322  8,578 26,245 23,699 
Net income$ 32,379 $29,807$ 92,061$83,914 
Earnings Per Share     
Basic$ 0.74 $0.68$ 2.10$1.92 
Diluted$ 0.73 $0.68$ 2.09$1.91 
      


NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
      
  2019 2018
 3rd Q2nd Q1st Q4th Q3rd Q
Interest, fee and dividend income     
Interest and fees on loans$ 81,082 $81,271 $79,321$78,963 $77,249
Securities available for sale 5,711  6,031  5,922 6,332  6,659
Securities held to maturity 4,586  5,089  5,217 4,344  3,462
Other 1,002  842  884 885  834
Total interest, fee and dividend income$ 92,381 $93,233 $91,344$90,524 $88,204
Interest expense     
Deposits$ 10,745 $10,234 $8,826$6,977 $6,157
Short-term borrowings 1,989  2,760  3,237 3,131  3,000
Long-term debt 498  471  422 431  431
Junior subordinated debt 1,095  1,141  1,168 1,110  1,089
Total interest expense$ 14,327 $14,606 $13,653$11,649 $10,677
Net interest income$ 78,054 $78,627 $77,691$78,875 $77,527
Provision for loan losses 6,324  7,277  5,807 6,528  6,026
Net interest income after provision for loan losses$ 71,730 $71,350 $71,884$72,347 $71,501
Noninterest income     
Insurance and other financial services revenue$ 6,421 $5,938 $6,756$5,843 $6,172
Service charges on deposit accounts 4,330  4,224  4,236 4,503  4,503
ATM and debit card fees 6,277  6,156  5,525 5,704  5,906
Retirement plan administration fees 7,600  7,836  7,734 7,113  7,244
Trust 5,209  4,731  4,551 4,573  4,808
Bank owned life insurance income 1,556  1,186  1,377 1,239  1,288
Net securities gains (losses) 4,036  (69) 57 (6,916) 412
Other 4,291  4,239  3,585 3,887  3,048
Total noninterest income$ 39,720 $34,241 $33,821$25,946 $33,381
Noninterest expense     
Salaries and employee benefits$ 39,352 $38,567 $39,356$38,998 $38,394
Occupancy 5,335  5,443  6,275 5,284  5,380
Data processing and communications 4,492  4,693  4,414 4,431  4,434
Professional fees and outside services 3,535  3,359  3,668 3,968  3,580
Equipment 4,487  4,518  4,757 4,529  4,319
Office supplies and postage 1,667  1,577  1,591 1,564  1,563
FDIC (credit) expense (20) 949  1,017 1,135  1,223
Advertising 677  641  503 1,006  739
Amortization of intangible assets 874  893  968 978  1,054
Loan collection and other real estate owned, net 976  961  785 738  1,234
Other 8,374  4,630  5,126 6,273  4,577
Total noninterest expense$ 69,749 $66,231 $68,460$68,904 $66,497
Income before income tax expense$ 41,701 $39,360 $37,245$29,389 $38,385
Income tax expense 9,322  8,805  8,118 737  8,578
Net income$ 32,379 $30,555 $29,127$28,652 $29,807
Earnings Per Share     
Basic$ 0.74 $0.70 $0.67$0.66 $0.68
Diluted$ 0.73 $0.69 $0.66$0.65 $0.68
      



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
  Q3 - 2019Q2 - 2019Q1 - 2019Q4 - 2018Q3 - 2018
Assets           
Short-term interest bearing accounts $ 57,5301.95%$25,7831.28%$9,0654.07%$3,7805.25%$3,3286.08%
Securities available for sale (1) (3)  940,2562.41% 981,0792.47% 984,7042.45% 1,104,1982.29% 1,197,9102.22%
Securities held to maturity (1) (3)  698,6172.77% 770,6512.83% 782,5702.90% 688,8402.73% 591,2202.58%
Investment in FRB and FHLB Banks  40,5257.04% 46,1796.60% 49,1526.54% 47,6896.95% 50,1076.20%
Loans (2) (3)  6,987,4764.61% 6,958,2994.69% 6,886,6724.68% 6,876,3414.56% 6,839,5654.49%
Total interest earning assets $ 8,724,4044.22%$8,781,9914.28%$8,712,1634.28%$8,720,8484.14%$8,682,1304.05%
Other assets  852,616  816,748  795,585  769,302  776,219 
Total assets $ 9,577,020 $9,598,739 $9,507,748 $9,490,150 $9,458,349 
            
Liabilities and stockholders' equity           
Money market deposit accounts $ 2,015,2971.24%$1,916,0451.16%$1,804,0530.99%$1,745,9800.65%$1,724,8530.58%
NOW deposit accounts  1,056,0010.13% 1,127,4130.13% 1,135,2130.16% 1,166,3830.18% 1,164,5130.17%
Savings deposits  1,274,7930.06% 1,282,0840.06% 1,252,0420.06% 1,250,7030.06% 1,279,5200.06%
Time deposits  893,8371.75% 953,6981.73% 942,4571.64% 921,2521.47% 881,7921.33%
Total interest bearing deposits $ 5,239,9280.81%$5,279,2400.78%$5,133,7650.70%$5,084,3180.54%$5,050,6780.48%
Short-term borrowings  490,6941.61% 620,8981.78% 712,3061.84% 724,6931.71% 766,3721.55%
Long-term debt  84,2502.35% 82,4142.29% 73,7072.32% 73,7352.32% 73,7622.32%
Junior subordinated debt  101,1964.29% 101,1964.52% 101,1964.68% 101,1964.35% 101,1964.27%
Total interest bearing liabilities $ 5,916,0680.96%$6,083,7480.96%$6,020,9740.92%$5,983,9420.77%$5,992,0080.71%
Demand deposits  2,389,617  2,298,867  2,309,531  2,373,235  2,356,216 
Other liabilities  185,374  162,374  151,490  130,151  121,574 
Stockholders' equity  1,085,961  1,053,750  1,025,753  1,002,822  988,551 
Total liabilities and stockholders' equity$ 9,577,020 $9,598,739 $9,507,748 $9,490,150 $9,458,349 
            
Interest rate spread  3.26% 3.32% 3.36% 3.37% 3.34%
Net interest margin (FTE) (3)  3.57% 3.61% 3.64% 3.61% 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 $374, $445, $500, $535 and $529 for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.
 
            


NBT Bancorp Inc. and Subsidiaries 
Average Year-to-Date Balance Sheets 
(unaudited, dollars in thousands) 
         
  Average Yield/Average Yield/ 
  BalanceInterestRates BalanceInterestRates  
Nine Months ended September 30,   2019  2018  
Assets        
Short-term interest bearing accounts $ 30,970$ 4571.97%$3,242$1335.48% 
Securities available for sale (1) (3)  968,517 17,6952.44% 1,245,672 20,7142.22% 
Securities held to maturity (1) (3)  750,305 15,9212.84% 526,097 9,9242.52% 
Investment in FRB and FHLB Banks  45,254 2,2716.71% 48,391 2,2486.21% 
Loans (2) (3)  6,944,518 241,9324.66% 6,728,479 222,1844.41% 
Total interest earning assets $ 8,739,564$ 278,2764.26%$8,551,881$255,2033.99% 
Other assets  821,859   763,108   
Total assets $ 9,561,423  $9,314,989   
         
Liabilities and stockholders' equity        
Money market deposit accounts $ 1,912,572$ 16,2551.14%$1,693,627$5,4590.43% 
NOW deposit accounts  1,105,919 1,1570.14% 1,199,306 1,3660.15% 
Savings deposits  1,269,723 5500.06% 1,272,452 5430.06% 
Time deposits  929,819 11,8431.70% 847,899 7,7991.23% 
Total interest bearing deposits $ 5,218,033$ 29,8050.76%$5,013,284$15,1670.40% 
Short-term borrowings  607,155 7,9861.76% 728,627 7,4211.36% 
Long-term debt  80,162 1,3912.32% 82,372 1,3592.21% 
Junior subordinated debt  101,196 3,4044.50% 101,196 3,0304.00% 
Total interest bearing liabilities $ 6,006,546$ 42,5860.95%$5,925,479$26,9770.61% 
Demand deposits  2,332,965   2,303,751   
Other liabilities  166,537   113,443   
Stockholders' equity  1,055,375   972,316   
Total liabilities and stockholders' equity $ 9,561,423  $9,314,989   
Net interest income (FTE)  $ 235,690  $228,226  
Interest rate spread   3.31%  3.38% 
Net interest margin (FTE) (3)   3.61%  3.57% 
Taxable equivalent adjustment  $ 1,318  $1,472  
Net interest income  $ 234,372  $226,754  
         
(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
 3rd Q2nd Q1st Q4th Q3rd Q
Commercial$ 1,317,649$1,299,784$1,306,551$1,291,568$1,310,262
Commercial real estate 2,033,552 2,025,280 1,943,931 1,930,742 1,902,315
Residential real estate mortgages 1,416,920 1,404,079 1,390,411 1,380,836 1,373,487
Dealer finance 1,195,783 1,189,670 1,191,111 1,216,144 1,229,700
Specialty lending 528,505 519,974 529,144 524,928 521,396
Home equity 452,535 456,754 463,582 474,566 480,761
Other consumer 68,865 67,732 65,582 68,925 69,341
Total loans$ 7,013,809$6,963,273$6,890,312$6,887,709$6,887,262


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
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