• NBT Bancorp Inc. Announces Second Quarter Net Income of $40.3 Million ($0.92 Per Diluted Common Share); Approves a 3.7% Dividend Increase

    Source: Nasdaq GlobeNewswire / 26 Jul 2021 16:15:01   America/New_York

    NORWICH, N.Y., July 26, 2021 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2021.

    Net income for the three months ended June 30, 2021 was $40.3 million, or $0.92 per diluted common share. Net income increased $15.6 million from the second quarter of 2020 primarily due to the estimated impact of the COVID-19 pandemic on expected credit losses in 2020, which resulted in a second quarter 2020 provision for loan losses of $18.8 million. Net income increased $0.5 million from the previous quarter primarily due to lower provision for loan losses and higher noninterest income, partly offset by higher noninterest expense.

    Pre-provision net revenue (“PPNR”)1 for the second quarter of 2021 was $49.0 million compared to $47.5 million in the previous quarter and $50.7 million in the second quarter of 2020.

    CEO Comments

    “Through the first half of 2021 momentum at NBT has continued to build,” said NBT President and CEO John H. Watt, Jr. “Our team has driven growth with increases in total loans and pivoted quickly from supporting our customers and communities through the worst of the pandemic and the reopening of our markets to full-on execution of our strategic growth plans. We continue to prioritize our disciplined approach to the allocation of capital, including the advancement of our New England expansion with our first full-service locations in Connecticut opening in the second quarter. Our continued strong capital generation and our commitment to enhancing long-term shareholder value resulted in our decision to increase our quarterly dividend to $0.28 per share, a 3.7% increase.”

    Second Quarter Financial Highlights

    Net Income
    • Net income of $40.3 million
    • Diluted earnings per share of $0.92
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent basis was $79.5 million1
    • Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.00%1, down 17 basis points (“bps”) from the prior quarter
    PPNR
    • PPNR1 was $49.0 million compared to $47.5 million in the first quarter of 2021 and $50.7 million in the second quarter of 2020
    Loans and Credit Quality
    • Period end loans were $7.5 billion, up 1%, annualized, from December 31, 2020
    • Excluding $360 million of Paycheck Protection Program (“PPP”) loans at June 30, 2021, period end loans increased $61 million or 0.9% from March 31, 2021
    • Allowance for loan losses to total loans of 1.31% (1.38% excluding PPP loans and related allowance), down 7 bps from the first quarter 2021 (down 10 bps excluding PPP loans and related allowance)
    • Net charge-offs to average loans was 0.07%, annualized (0.07% excluding PPP loans)
    • Nonperforming assets to total assets was 0.38% (0.39% excluding PPP loans)
    Capital
    • Tangible book value per share2 grew 4% for the quarter and 10% from prior year to $21.50 at June 30, 2021
    • Tangible equity to assets of 8.28%1
    • CET1 ratio of 12.12%; Leverage ratio of 9.40%

    Loans

    • Period end total loans were $7.5 billion at June 30, 2021 and at December 31, 2020.
    • Excluding PPP loans, period end loans increased $60.9 million from March 31, 2021. Commercial and industrial loans increased $12.4 million to $1.5 billion; commercial real estate loans increased $23.5 million to $2.3 billion; and total consumer loans increased $25.0 million to $3.4 billion.
    • Total PPP loans as of June 30, 2021 were $360 million (net of unamortized fees). The following activity occurred during the second quarter of 2021:
      • $37 million in originations
      • $232.3 million of loans forgiven
      • $4.7 million of interest and fees recognized into interest income
    • Commercial line of credit utilization rate was 22% at June 30, 2021 consistent with 22% at March 31, 2021 and compared to 26% at June 30, 2020.

    Deposits

    • Average total deposits in the second quarter of 2021 were $9.9 billion, compared to $9.3 billion in the first quarter of 2021, driven by increases in non-interest bearing demand deposit accounts, money market deposit accounts and savings deposit accounts.
    • Loan to deposit ratio was 76.8% at June 30, 2021, compared to 82.6% at December 31, 2020.

    Net Interest Income and Net Interest Margin

    • Net interest income for the second quarter of 2021 was $79.2 million, which was consistent with the first quarter of 2021 and down $1.3 million or 1.6% from the second quarter of 2020.
    • The NIM on a fully taxable equivalent (“FTE”) basis for the second quarter of 2021 was 3.00%, down 17 bps from the first quarter of 2021 and down 38 bps from the second quarter of 2020. The net impact of PPP loans and excess liquidity negatively impacted the NIM by 24 bps in the second quarter of 2021 compared to a negative 8 bps impact in the first quarter 2021. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 1 bp from the prior quarter primarily due to a 4 bp decline in earning asset yields partially offset by a 3 bp decline in the cost of interest bearing liabilities and a $223 million increase in average checking deposit account balances during the quarter.
    • Earning asset yields for the three months ended June 30, 2021 were down 20 bps from the prior quarter and down 50 bps from the same quarter in the prior year. Earning assets grew $490.0 million or 4.8% from the prior quarter and grew $1.0 billion or 10.7% from the same quarter in the prior year. The following are highlights from the prior quarter:
      • Excess liquidity resulted in a $386.7 million increase in the average balances of short-term interest bearing accounts with a yield of 0.09%.
      • The average balance of investment securities increased $103.9 million while yields declined 13 bps.
      • Loan yields decreased 6 bps to 3.96% for the quarter. Excluding PPP loans, yields decreased 1 bp from the prior quarter.
    • Total cost of deposits was 0.12% for the second quarter of 2021, down 2 bps from the prior quarter and down 11 bps from the same period in the prior year.
    • The cost of interest-bearing liabilities for the three months ended June 30, 2021 was 0.29%, down 5 bps compared to the prior quarter of 0.34% and down 16 bps from the second quarter of 2020 of 0.45%.
      • Cost of interest-bearing deposits decreased 3 bps from the prior quarter and decreased 16 bps from the same quarter in 2020.

    Credit Quality and Allowance for Credit Losses

    • Net charge-offs to total average loans of 7 bps (7 bps excluding PPP loans) compared to 12 bps (13 bps excluding PPP loans) in the prior quarter and 28 bps (30 bps excluding PPP loans) in the second quarter of 2020. The decrease in charge-offs during the second quarter of 2021 was primarily due to lower charge-offs in the consumer loan portfolios, which continue to be at lower levels due to the support of government pandemic relief programs.
    • Nonperforming assets to total assets was 0.38% (0.39% excluding PPP loans) compared to 0.41% (0.43% excluding PPP loans) at March 31, 2021 and 0.27% (0.28% excluding PPP loans) at June 30, 2020.
    • Provision expense for the three months ended June 30, 2021 was a net benefit of $5.2 million and net charge-offs were $1.3 million. The net provision benefit was $2.4 million more than the first quarter of 2021 compared to provision expense of $18.8 million in the second quarter of 2020. The decrease in provision expense from the prior quarter and second quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an improved economic forecast and lower levels of charge-offs.
    • The allowance for loan losses was $98.5 million or 1.31% (1.38% excluding PPP loans and related allowance) of total loans compared to 1.38% (1.48% excluding PPP loans and related allowance) at March 31, 2021 and 1.49% (1.59% excluding PPP loans and related allowance) at June 30, 2020. The decrease in the level of allowance for credit losses was primarily due to the positive impact the forecasted improving economic conditions had on expected credit losses.
    • The reserve for unfunded loan commitments decreased to $5.8 million at June 30, 2021 compared to the prior quarter at $5.9 million.

    Noninterest Income

    • Total noninterest income, excluding securities gains (losses), was $39.1 million for the three months ended June 30, 2021, up $2.5 million from the prior quarter and up $4.3 million from the prior year quarter.
    • Service charges on deposit accounts were comparable to the prior quarter and higher than the second quarter of 2020.
    • ATM and debit card fees were up compared to the prior quarter and the second quarter of 2020 due to increased volume and higher per transaction rates.
    • Retirement plan administration fees were lower than the prior quarter driven by seasonal revenue fluctuations, and higher than the second quarter of 2020 driven by market performance and organic growth in relationships.
    • Wealth management fees was higher than both the prior quarter and second quarter of 2020 driven by market performance and organic growth.
    • Other noninterest income increased slightly from the prior quarter and decreased from the second quarter of 2020 due to lower loan swap fee income and lower mortgage banking income.

    Noninterest Expense

    • Total noninterest expense for the second quarter of 2021 was up 5.2% from the previous quarter and up 9.3% from the second quarter of 2020.
    • Salaries and benefits increased from the prior quarter and the second quarter of 2020 due to one additional day of payroll in the second quarter, annual merit pay increases and higher medical expenses, partially offset by lower stock-based compensation.
    • Occupancy expense is down from the prior quarter due to lower seasonal maintenance and utility expenses and comparable to the second quarter of 2020.
    • Data processing and communications decreased from the prior quarter and were higher compared to the second quarter of 2020 driven by continued investments in digital platform solutions including a technology-enabled PPP platform.
    • Professional fees and outside services increased from the prior quarter due to timing of initiatives, and were higher compared to the second quarter of 2020 as a result of certain projects paused during the COVID-19 pandemic.
    • Equipment expense was higher than both the prior quarter and the second quarter of 2020 due to higher technology costs associated with several digital upgrades.
    • Other expenses increased from the prior quarter and the second quarter of 2020 and included $1.9 million in non-recurring costs, including an estimated legal settlement charge.

    Income Taxes

    • The effective tax rate was 22.9% for the second quarter of 2021 compared to 21.9% for the first quarter of 2021 and 21.0% for the second quarter of 2020. The increase was due to a higher level of taxable income relative to total income.

    Capital

    • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.28%. Tangible book value per share2 grew 4% from the prior quarter and 10% from the prior year quarter to $21.50.
    • June 30, 2021 CET1 capital ratio of 12.12%, leverage ratio of 9.40 % and total risk-based capital ratio of 15.78%.

    Dividend and Stock Repurchase

    • The Board of Directors approved a third-quarter cash dividend of $0.28 per share at a meeting held today. The dividend, which represents a $0.01, or 3.7% increase, will be paid on September 15, 2021 to shareholders of record as of September 1, 2021. The increased dividend represents a yield of 3.3% based upon the closing price of the Company’s stock on July 21, 2021.
    • The Company purchased 23,627 shares of common stock during the second quarter of 2021 at a weighted average price of $36.03 excluding commissions. As of June 30, 2021, there were 1,719,342 shares available for repurchase under this plan, which expires on December 31, 2021.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, July 27, 2021, to review second quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-events and will be archived for twelve months.

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.6 billion at June 30, 2021. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 140 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service retirement plan administration and recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtinsurance.com.

    Forward-Looking Statements

    This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions and integration of acquired businesses; (13) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; (17) changes in the Company’s organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes 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 and its impact on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected. Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Non-GAAP Measures

    This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

    Contact: John H. Watt, Jr., President and CEO
      Scott A. Kingsley, Executive Vice President and CFO
      NBT Bancorp Inc.
      52 South Broad Street
      Norwich, NY 13815
      607-337-6589


    NBT Bancorp Inc. and Subsidiaries
    Selected Financial Data
    (unaudited, dollars in thousands except per share data)
          
      2021  2020 
     2nd Q1st Q4th Q3rd Q2nd Q
    Profitability:     
    Diluted earnings per share$ 0.92 $0.91 $0.78 $0.80 $0.56 
    Weighted average diluted common shares outstanding 43,792,940  43,889,889  43,973,971  43,941,953  43,928,344 
    Return on average assets3 1.39% 1.46% 1.24% 1.29% 0.94%
    Return on average equity3 13.42% 13.57% 11.59% 12.09% 8.76%
    Return on average tangible common equity1 3 17.93% 18.24% 15.71% 16.51% 12.14%
    Net interest margin1 3 3.00% 3.17% 3.20% 3.17% 3.38%
          
     6 Months Ended June 30,   
      2021  2020    
    Profitability:     
    Diluted earnings per share$ 1.83 $0.80    
    Weighted average diluted common shares outstanding 43,839,060  44,026,420    
    Return on average assets3 1.42% 0.69%   
    Return on average equity3 13.49% 6.23%   
    Return on average tangible common equity1 3 18.08% 8.69%   
    Net interest margin1 3 3.08% 3.45%   
          
      2021  2020 
     2nd Q1st Q4th Q3rd Q2nd Q
    Balance sheet data:     
    Short-term interest bearing accounts$ 883,758 $972,195 $512,686 $450,291 $528,228 
    Securities available for sale 1,534,733  1,387,028  1,348,698  1,197,925  1,108,443 
    Securities held to maturity 622,351  592,999  616,560  663,088  599,164 
    Net loans 7,419,127  7,528,459  7,388,885  7,446,143  7,514,491 
    Total assets 11,574,947  11,537,253  10,932,906  10,850,212  10,847,184 
    Total deposits 9,785,257  9,815,930  9,081,692  8,958,183  8,815,891 
    Total borrowings 304,110  308,766  406,731  446,737  602,988 
    Total liabilities 10,349,891  10,346,272  9,745,288  9,684,101  9,704,532 
    Stockholders' equity 1,225,056  1,190,981  1,187,618  1,166,111  1,142,652 
          
    Capital:     
    Equity to assets 10.58% 10.32% 10.86% 10.75% 10.53%
    Tangible equity ratio1 8.28% 8.00% 8.41% 8.27% 8.04%
    Book value per share$ 28.19 $27.43 $27.22 $26.74 $26.20 
    Tangible book value per share2$ 21.50 $20.71 $20.52 $20.02 $19.46 
    Leverage ratio 9.40% 9.60% 9.56% 9.48% 9.44%
    Common equity tier 1 capital ratio 12.12% 12.13% 11.84% 11.63% 11.34%
    Tier 1 capital ratio 13.34% 13.38% 13.09% 12.88% 12.60%
    Total risk-based capital ratio 15.78% 15.92% 15.62% 15.43% 15.15%
    Common stock price (end of period)$ 35.97 $39.90 $32.10 $26.82 $30.06 
     
          


    NBT Bancorp Inc. and Subsidiaries
    Asset Quality and Consolidated Loan Balances
    (unaudited, dollars in thousands)
          
      2021  2020 
     2nd Q1st Q4th Q3rd Q2nd Q
    Asset quality:     
    Nonaccrual loans$ 40,550 $43,399 $44,647 $35,896 $25,567 
    90 days past due and still accruing 2,575  2,155  3,149  2,579  2,057 
    Total nonperforming loans 43,125  45,554  47,796  38,475  27,624 
    Other real estate owned 798  1,318  1,458  1,605  1,783 
    Total nonperforming assets 43,923  46,872  49,254  40,080  29,407 
    Allowance for loan losses 98,500  105,000  110,000  114,500  113,500 
          
    Asset quality ratios (total):     
    Allowance for loan losses to total loans 1.31% 1.38% 1.47% 1.51% 1.49%
    Total nonperforming loans to total loans 0.57% 0.60% 0.64% 0.51% 0.36%
    Total nonperforming assets to total assets 0.38% 0.41% 0.45% 0.37% 0.27%
    Allowance for loan losses to total nonperforming loans 228.41% 230.50% 230.14% 297.60% 410.87%
    Past due loans to total loans4 0.26% 0.22% 0.37% 0.26% 0.30%
    Net charge-offs to average loans3 0.07% 0.12% 0.21% 0.12% 0.28%
          
    Asset quality ratios (excluding paycheck protection program):    
    Allowance for loan losses to total loans 1.38% 1.48% 1.56% 1.62% 1.59%
    Total nonperforming loans to total loans 0.60% 0.64% 0.68% 0.55% 0.39%
    Total nonperforming assets to total assets 0.39% 0.43% 0.47% 0.39% 0.28%
    Allowance for loan losses to total nonperforming loans 228.36% 230.44% 230.10% 297.53% 410.78%
    Past due loans to total loans4 0.27% 0.23% 0.39% 0.28% 0.32%
    Net charge-offs to average loans3 0.07% 0.13% 0.22% 0.13% 0.30%
          
      2021  2020 
     2nd Q1st Q4th Q3rd Q2nd Q
    Allowance for loan losses as a percentage of loans by segment:    
    Commercial & industrial1.11%1.20%1.34%1.34%1.25%
    Commercial real estate1.26%1.48%1.49%1.57%1.56%
    Paycheck protection program0.01%0.01%0.01%0.01%0.01%
    Residential real estate0.98%1.03%1.07%1.21%1.13%
    Auto0.76%0.78%0.93%0.92%0.99%
    Other consumer4.27%4.34%4.55%4.66%5.01%
    Total1.31%
    		1.38%1.47%1.51%1.49%
    Total excluding PPP loans1.38%
    		1.48%1.56%1.62%1.59%
          
      2021  2020 
    Loans by line of business: 2nd Q1st Q4th Q3rd Q2nd Q
    Commercial$ 1,479,258 $1,466,841 $1,451,560 $1,458,053 $1,474,736 
    Commercial real estate 2,265,754  2,242,289  2,196,477  2,121,198  2,100,650 
    Paycheck protection program 359,738  536,494  430,810  514,558  510,097 
    Residential real estate mortgages 1,512,354  1,478,216  1,466,662  1,448,530  1,460,058 
    Indirect auto 899,324  913,083  931,286  989,369  1,091,889 
    Specialty lending 602,585  577,509  579,644  566,973  515,618 
    Home equity 351,469  369,633  387,974  404,346  415,528 
    Other consumer 47,145  49,394  54,472  57,616  59,415 
    Total loans$ 7,517,627 $7,633,459 $7,498,885 $7,560,643 $7,627,991 
          
    PPP unamortized fees (dollars in millions)$ 12.6 $14.2 $6.9 $11.3 $14.6 


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets
    (unaudited, dollars in thousands)
       
     June 30,December 31,
    Assets20212020
    Cash and due from banks$ 183,185$159,995
    Short-term interest bearing accounts 883,758 512,686
    Equity securities, at fair value 32,806 30,737
    Securities available for sale, at fair value 1,534,733 1,348,698
    Securities held to maturity (fair value $632,954 and $636,827, respectively) 622,351 616,560
    Federal Reserve and Federal Home Loan Bank stock 25,132 27,353
    Loans held for sale 1,404 1,119
    Loans 7,517,627 7,498,885
    Less allowance for loan losses 98,500 110,000
    Net loans$ 7,419,127$7,388,885
    Premises and equipment, net 72,482 74,206
    Goodwill 280,541 280,541
    Intangible assets, net 10,241 11,735
    Bank owned life insurance 226,507 186,434
    Other assets 282,680 293,957
    Total assets$ 11,574,947$10,932,906
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$ 3,582,705$3,241,123
    Savings, NOW and money market 5,633,523 5,207,090
    Time 569,029 633,479
    Total deposits$ 9,785,257$9,081,692
    Short-term borrowings 90,598 168,386
    Long-term debt 14,045 39,097
    Subordinated debt, net 98,271 98,052
    Junior subordinated debt 101,196 101,196
    Other liabilities 260,524 256,865
    Total liabilities$ 10,349,891$9,745,288
       
    Total stockholders' equity$ 1,225,056$1,187,618
       
    Total liabilities and stockholders' equity$ 11,574,947$10,932,906
       


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
         
     Three Months EndedSix Months Ended
     June 30,June 30,
      2021  2020 2021  2020 
    Interest, fee and dividend income    
    Interest and fees on loans$ 74,795 $77,270$ 149,888 $155,998 
    Securities available for sale 5,762  5,600 11,306  11,353 
    Securities held to maturity 3,096  3,926 6,478  8,017 
    Other 391  650 682  1,479 
    Total interest, fee and dividend income$ 84,044 $87,446$ 168,354 $176,847 
    Interest expense    
    Deposits$ 2,862 $4,812$ 6,034 $13,916 
    Short-term borrowings 32  972 102  2,769 
    Long-term debt 88  393 212  786 
    Subordinated debt 1,359  128 2,718  128 
    Junior subordinated debt 525  695 1,055  1,621 
    Total interest expense$ 4,866 $7,000$ 10,121 $19,220 
    Net interest income$ 79,178 $80,446$ 158,233 $157,627 
    Provision for loan losses (5,216) 18,840 (8,012) 48,480 
    Net interest income after provision for loan losses$ 84,394 $61,606$ 166,245 $109,147 
    Noninterest income    
    Service charges on deposit accounts$ 3,028 $2,529$ 6,055 $6,526 
    ATM and debit card fees 8,309  6,136 15,171  11,990 
    Retirement plan administration fees 9,779  9,214 19,877  17,155 
    Wealth management fees 8,406  6,823 16,316  14,096 
    Insurance services 3,508  3,292 6,969  7,561 
    Bank owned life insurance income 1,659  1,381 3,040  2,755 
    Net securities gains (losses) 201  180 668  (632)
    Other 4,426  5,456 8,258  10,983 
    Total noninterest income$ 39,316 $35,011$ 76,354 $70,434 
    Noninterest expense    
    Salaries and employee benefits$ 42,671 $39,717$ 84,272 $80,467 
    Occupancy 5,291  5,065 11,164  11,060 
    Data processing and communications 4,427  4,079 9,158  8,312 
    Professional fees and outside services 4,030  3,403 7,619  7,300 
    Equipment 5,493  4,779 10,670  9,421 
    Office supplies and postage 1,615  1,455 3,114  3,091 
    FDIC expense 663  993 1,471  1,304 
    Advertising 468  322 919  931 
    Amortization of intangible assets 682  883 1,494  1,717 
    Loan collection and other real estate owned, net 663  728 1,253  1,745 
    Other 5,416  3,916 8,173  10,873 
    Total noninterest expense$ 71,419 $65,340$ 139,307 $136,221 
    Income before income tax expense$ 52,291 $31,277$ 103,292 $43,360 
    Income tax expense 11,995  6,564 23,150  8,279 
    Net income$ 40,296 $24,713$ 80,142 $35,081 
    Earnings Per Share    
    Basic$ 0.93 $0.57$ 1.84 $0.80 
    Diluted$ 0.92 $0.56$ 1.83 $0.80 
         


    NBT Bancorp Inc. and Subsidiaries
    Quarterly Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
          
     2021
    		2020
     2nd Q1st Q4th Q3rd Q2nd Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 74,795 $75,093 $76,863 $74,998$77,270
    Securities available for sale 5,762  5,544  5,478  5,603 5,600
    Securities held to maturity 3,096  3,382  3,532  3,734 3,926
    Other 391  291  568  659 650
    Total interest, fee and dividend income$ 84,044 $84,310 $86,441 $84,994$87,446
    Interest expense     
    Deposits$ 2,862 $3,172 $3,887 $4,267$4,812
    Short-term borrowings 32  70  193  446 972
    Long-term debt 88  124  369  398 393
    Subordinated debt 1,359  1,359  1,339  1,375 128
    Junior subordinated debt 525  530  545  565 695
    Total interest expense$ 4,866 $5,255 $6,333 $7,051$7,000
    Net interest income$ 79,178 $79,055 $80,108 $77,943$80,446
    Provision for loan losses (5,216) (2,796) (607) 3,261 18,840
    Net interest income after provision for loan losses$ 84,394 $81,851 $80,715 $74,682$61,606
    Noninterest income     
    Service charges on deposit accounts$ 3,028 $3,027 $3,588 $3,087$2,529
    ATM and debit card fees 8,309  6,862  6,776  7,194 6,136
    Retirement plan administration fees 9,779  10,098  9,011  9,685 9,214
    Wealth management fees 8,406  7,910  7,456  7,695 6,823
    Insurance services 3,508  3,461  3,454  3,742 3,292
    Bank owned life insurance income 1,659  1,381  1,733  1,255 1,381
    Net securities gains 201  467  160  84 180
    Other 4,426  3,832  5,937  4,985 5,456
    Total noninterest income$ 39,316 $37,038 $38,115 $37,727$35,011
    Noninterest expense     
    Salaries and employee benefits$ 42,671 $41,601 $41,016 $40,451$39,717
    Occupancy 5,291  5,873  5,280  5,294 5,065
    Data processing and communications 4,427  4,731  4,157  4,058 4,079
    Professional fees and outside services 4,030  3,589  4,388  3,394 3,403
    Equipment 5,493  5,177  5,395  5,073 4,779
    Office supplies and postage 1,615  1,499  1,517  1,530 1,455
    FDIC expense 663  808  739  645 993
    Advertising 468  451  827  530 322
    Amortization of intangible assets 682  812  822  856 883
    Loan collection and other real estate owned, net 663  590  930  620 728
    Other 5,416  2,757  10,133  3,857 3,916
    Total noninterest expense$ 71,419 $67,888 $75,204 $66,308$65,340
    Income before income tax expense$ 52,291 $51,001 $43,626 $46,101$31,277
    Income tax expense 11,995  11,155  9,432  10,988 6,564
    Net income$ 40,296 $39,846 $34,194 $35,113$24,713
    Earnings Per Share     
    Basic$ 0.93 $0.91 $0.78 $0.80$0.57
    Diluted$ 0.92 $0.91 $0.78 $0.80$0.56
          


    NBT Bancorp Inc. and Subsidiaries
    Average Quarterly Balance Sheets
    (unaudited, dollars in thousands)
                
      Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates
      Q2 - 2021Q1 - 2021Q4 - 2020Q3 - 2020Q2 - 2020
    Assets           
    Short-term interest bearing accounts$ 974,0340.09%$587,3580.09%$552,5290.11%$477,9460.11%$380,2600.10%
    Securities available for sale1 5  1,453,0681.59% 1,346,3801.67% 1,230,4111.77% 1,137,6041.96% 985,5612.29%
    Securities held to maturity1 5  604,5822.23% 607,4072.43% 640,4222.36% 621,8122.56% 613,8992.75%
    Investment in FRB and FHLB Banks 25,1152.67% 25,6062.45% 28,2755.94% 29,7207.08% 36,6046.09%
    Loans1 6  7,574,2723.96% 7,574,3374.02% 7,533,9534.06% 7,559,2183.95% 7,589,0324.10%
    Total interest earning assets $ 10,631,0713.18%$10,141,0883.38%$9,985,5903.46%$9,826,3003.45%$9,605,3563.68%
    Other assets  971,681  960,994  954,123  967,194  961,807 
    Total assets $ 11,602,752 $11,102,082  $10,939,713  $10,793,494  $10,567,163  
                
    Liabilities and stockholders' equity         
    Money market deposit accounts $ 2,605,7670.21%$2,484,1200.23%$2,455,5100.27%$2,364,6060.28%$2,360,4070.29%
    NOW deposit accounts  1,454,7510.05% 1,358,9550.05% 1,315,3700.05% 1,207,0640.05% 1,167,4860.04%
    Savings deposits  1,660,7220.05% 1,547,9830.05% 1,465,5620.05% 1,447,0210.05% 1,383,4950.05%
    Time deposits  591,1470.75% 615,3430.93% 645,2881.15% 684,7081.31% 760,8031.48%
    Total interest bearing deposits $ 6,312,3870.18%$6,006,4010.21%$5,881,7300.26%$5,703,3990.30%$5,672,1910.34%
    Short-term borrowings  95,2260.13% 115,1820.25% 175,5970.44% 277,8900.64% 427,0040.92%
    Long-term debt  14,0532.51% 19,9132.53% 59,4882.47% 64,1372.47% 64,1652.46%
    Subordinated debt, net  98,2045.55% 98,0955.62% 97,9845.44% 97,9345.59% 8,6335.96%
    Junior subordinated debt  101,1962.08% 101,1962.12% 101,1962.14% 101,1962.22% 101,1962.76%
    Total interest bearing liabilities $ 6,621,0660.29%$6,340,7870.34%$6,315,9950.40%$6,244,5560.45%$6,273,1890.45%
    Demand deposits  3,542,176  3,319,024  3,178,410  3,111,617  2,887,545 
    Other liabilities  235,536  250,991  271,206  282,265  271,635 
    Stockholders' equity  1,203,974  1,191,280  1,174,102  1,155,056  1,134,794 
    Total liabilities and stockholders' equity $ 11,602,752 $11,102,082  $10,939,713  $10,793,494  $10,567,163  
                
    Interest rate spread  2.89% 3.04% 3.06% 3.00% 3.23%
    Net interest margin (FTE)1  3.00% 3.17% 3.20% 3.17% 3.38%
                


    NBT Bancorp Inc. and Subsidiaries
    Average Year-to-Date Balance Sheets
    (unaudited, dollars in thousands)
            
      Average Yield/Average Yield/
      BalanceInterestRates BalanceInterestRates
    Six Months Ended June 30, 2021
    		2020
    Assets       
    Short-term interest bearing accounts $ 781,764$ 3600.09%$227,478$3350.30%
    Securities available for sale1 5  1,400,019 11,3061.63% 974,044 11,3532.34%
    Securities held to maturity1 5  605,987 7,0042.33% 618,149 8,5542.78%
    Investment in FRB and FHLB Banks  25,359 3222.56% 38,194 1,1446.02%
    Loans1 6  7,574,304 149,9633.99% 7,376,072 156,1194.26%
    Total interest earning assets $ 10,387,433$ 168,9553.28%$9,233,937$177,5053.87%
    Other assets  966,367   923,689  
    Total assets $ 11,353,800  $10,157,626  
            
    Liabilities and stockholders' equity       
    Money market deposit accounts $ 2,545,280$ 2,7550.22%$2,230,857$6,9650.63%
    NOW deposit accounts  1,407,118 3480.05% 1,126,845 4040.07%
    Savings deposits  1,604,664 4060.05% 1,329,890 3600.05%
    Time deposits  603,178 2,5250.84% 801,896 6,1871.55%
    Total interest bearing deposits $ 6,160,240$ 6,0340.20%$5,489,488$13,9160.51%
    Short-term borrowings  105,149 1020.20% 480,261 2,7691.16%
    Long-term debt  16,967 2122.52% 64,179 7862.46%
    Subordinated debt, net  98,149 2,7185.58% 4,316 1285.96%
    Junior subordinated debt  101,196 1,0552.10% 101,196 1,6213.22%
    Total interest bearing liabilities $ 6,481,701$ 10,1210.31%$6,139,440$19,2200.63%
    Demand deposits  3,431,216   2,642,926  
    Other liabilities  243,221   243,066  
    Stockholders' equity  1,197,662   1,132,194  
    Total liabilities and stockholders' equity $ 11,353,800  $10,157,626  
    Net interest income (FTE)1  $ 158,834  $158,285 
    Interest rate spread   2.97%  3.24%
    Net interest margin (FTE)1   3.08%  3.45%
    Taxable equivalent adjustment  $ 601  $658 
    Net interest income  $ 158,233  $157,627 
            


           
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures     
     (unaudited, dollars in thousands)     
           
     Pre-provision net revenue ("PPNR")2021
    		2020
      2nd Q1st Q4th Q3rd Q2nd Q
     Net income$ 40,296 $39,846 $34,194 $35,113 $24,713 
     Income tax expense 11,995  11,155  9,432  10,988  6,564 
     Provision for loan losses (5,216) (2,796) (607) 3,261  18,840 
     FTE adjustment 299  302  318  325  329 
     Net securities (gains) (201) (467) (160) (84) (180)
     Provision for unfunded loan commitments reserve (80) (500) 900  -  (200)
     Nonrecurring expense 1,880  -  4,100  -  650 
     PPNR$ 48,973 $47,540 $48,177 $49,603 $50,716 
           
     Average Assets$ 11,602,752 $11,102,082 $10,939,713 $10,793,494 $10,567,163 
           
     Return on Average Assets3 1.39% 1.46% 1.24% 1.29% 0.94%
     PPNR Return on Average Assets3 1.69% 1.74% 1.75% 1.83% 1.93%
           
      6 Months Ended June 30,   
      2021
    		2020
    		   
     Net income$ 80,142 $35,081    
     Income tax expense 23,150  8,279    
     Provision for loan losses (8,012) 48,480    
     FTE adjustment 601  658    
     Net securities (gains) losses (668) 632    
     Provision for unfunded loan commitments reserve (580) 1,800    
     Nonrecurring expense 1,880  650    
     PPNR$ 96,513 $95,580    
           
     Average Assets$ 11,353,800 $10,157,626    
           
     Return on Average Assets3 1.42% 0.69%   
     PPNR Return on Average Assets3 1.71% 1.89%   
           
     PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in the provision for loan losses, net securities gains (losses) and non-recurring income and/or expense.
     
           
     FTE Adjustment2021
    		2020
      2nd Q1st Q4th Q3rd Q2nd Q
     Net interest income$ 79,178 $79,055 $80,108 $77,943 $80,446 
     Add: FTE adjustment 299  302  318  325  329 
     Net interest income (FTE)$ 79,477 $79,357 $80,426 $78,268 $80,775 
     Average earning assets$ 10,631,071 $10,141,088 $9,985,590 $9,826,300 $9,605,356 
     Net interest margin (FTE)3 3.00% 3.17% 3.20% 3.17% 3.38%
           
      6 Months Ended June 30,   
      2021
    		2020
    		   
     Net interest income$ 158,233 $157,627    
     Add: FTE adjustment 601  658    
     Net interest income (FTE)$ 158,834 $158,285    
     Average earning assets$ 10,387,433 $9,233,937    
     Net interest margin (FTE)3 3.08% 3.45%   
           
     Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.
           


           
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures     
     (unaudited, dollars in thousands)     
           
     Tangible equity to tangible assets2021
    		2020
      2nd Q1st Q4th Q3rd Q2nd Q
     Total equity$ 1,225,056 $1,190,981 $1,187,618 $1,166,111 $1,142,652 
     Intangible assets 290,782  291,464  292,276  293,098  293,954 
     Total assets$ 11,574,947 $11,537,253 $10,932,906 $10,850,212 $10,847,184 
     Tangible equity to tangible assets 8.28% 8.00% 8.41% 8.27% 8.04%
           
     Return on average tangible common equity2021
    		2020
      2nd Q1st Q4th Q3rd Q2nd Q
     Net income$ 40,296 $39,846 $34,194 $35,113 $24,713 
     Amortization of intangible assets (net of tax) 512  609  617  642  662 
     Net income, excluding intangibles amortization$ 40,808 $40,455 $34,811 $35,755 $25,375 
           
     Average stockholders' equity$ 1,203,974 $1,191,280 $1,174,102 $1,155,056 $1,134,794 
     Less: average goodwill and other intangibles 291,133  291,921  292,725  293,572  294,423 
     Average tangible common equity$ 912,841 $899,359 $881,377 $861,484 $840,371 
     Return on average tangible common equity3 17.93% 18.24% 15.71% 16.51% 12.14%
           
      6 Months Ended June 30,   
      20212020   
     Net income$ 80,142 $35,081    
     Amortization of intangible assets (net of tax) 1,121  1,288    
     Net income, excluding intangibles amortization$ 81,263 $36,369    
           
     Average stockholders' equity$ 1,197,662 $1,132,194    
     Less: average goodwill and other intangibles 291,525  290,411    
     Average tangible common equity$ 906,137 $841,783    
     Return on average tangible common equity3 18.08% 8.69%   
           
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. 
    3Annualized.     
    4Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    5Securities are shown at average amortized cost.    
    6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
           

Share on,