• NBT Bancorp Inc. Announces First Quarter Net Income of $39.8 Million ($0.91 Per Diluted Common Share); Approves Dividend

    Source: Nasdaq GlobeNewswire / 26 Apr 2021 15:15:01   America/Chicago

    NORWICH, N.Y., April 26, 2021 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2021.

    Net income for the three months ended March 31, 2021 was $39.8 million, or $0.91 per diluted common share. Net income increased $5.7 million from the previous quarter primarily due to lower provision for loan losses and branch optimization charges recognized in the previous quarter. Net income increased $29.5 million from the first quarter of 2020 due to the adoption of the Current Expected Credit Losses (“CECL”) accounting methodology, including the estimated impact of the COVID-19 pandemic on expected credit losses, which resulted in first quarter 2020 provision for loan losses of $29.6 million.

    Pre-provision net revenue (“PPNR”)1 for the first quarter of 2021 was $47.5 million compared to $48.2 million in the previous quarter and $44.9 million in the first quarter of 2020.

    CEO Comments

    “The results for the first quarter of 2021 demonstrate the resiliency of our banking platform. We drove commercial loan growth and experienced increased levels of consumer activity. Our mortgage pipeline is strong, and our indirect auto business exceeded production targets,” said NBT President and CEO John H. Watt, Jr. “We are optimistic about the prospects for the rest of the year driven by pent up demand and a snap back in many sectors of the economy that we anticipate will occur as the markets we serve continue to open up. Sustained levels of excellent credit quality allow for plenty of optionality in the deployment of capital which will drive growth. Record Assets Under Management and Administration in our wealth management business exceeded $9 billion. Finally, we leaned heavily into the Paycheck Protection Program in the latest round of funding to support the Main Street businesses and non-profits that are the backbone of the communities we serve.”

    First Quarter Financial Highlights

    Net Income
    • Net income of $39.8 million
    • Diluted earnings per share of $0.91
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent basis was $79.4 million1
    • Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.17%1, down 3 basis points (“bps”) from the prior quarter
    PPNR
    • PPNR1 was $47.5 million compared to $48.2 million in the fourth quarter of 2020 and $44.9 million in the first quarter of 2020
    Loans and Credit Quality
    • Period end loans were $7.6 billion, up 7%, annualized, from December 31, 2020
    • Excluding $536 million of Paycheck Protection Program (“PPP”) loans at March 31, 2021, period end loans increased $29 million or 0.4% from December 31, 2020
    • Allowance for loan losses to total loans of 1.38% (1.48% excluding PPP loans and related allowance), down 9 bps from the fourth quarter (down 8 bps excluding PPP loans and related allowance)
    • Net charge-offs to average loans was 0.12%, annualized (0.13% excluding PPP loans)
    • Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans)
    Capital
    • Tangible book value per share2 grew 1% for the quarter and 9% from prior year to $20.71 at March 31, 2021
    • Tangible equity to assets of 8.00%1
    • CET1 ratio of 12.13%; Leverage ratio of 9.60%

    Loans

    • Period end total loans were $7.6 billion at March 31, 2021 and $7.5 billion at December 31, 2020.
    • Excluding PPP loans, period end loans increased $28.9 million from December 31, 2020. Commercial and industrial loans increased $3.6 million to $1.3 billion; commercial real estate loans increased $57.5 million to $2.4 billion; and total consumer loans decreased $32.2 million to $3.4 billion.
    • Total PPP loans as of March 31, 2021 were $536 million (net of unamortized fees). The following activity occurred during the first quarter of 2021:
      • $250 million in originations
      • $132.8 million of loans forgiven
      • $6.2 million recognized into interest income
    • Commercial line of credit utilization rate was 22% at March 31, 2021 consistent with 22% at December 31, 2020 and compared to 32% at March 31, 2020.

    Deposits

    • Average total deposits in the first quarter of 2021 were $9.3 billion, compared to $9.1 billion in the fourth quarter of 2020, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts.
    • Loan to deposit ratio was 77.8% at March 31, 2021, compared to 82.6% at December 31, 2020.

    Net Interest Income and Net Interest Margin

    • Net interest income for the first quarter of 2021 was $79.1 million, down $1.1 million or 1.3% from the fourth quarter of 2020 and up $1.9 million or 2.4% from the first quarter of 2020.
    • The NIM on a fully taxable equivalent (“FTE”) basis for the first quarter of 2021 was 3.17%, down 3 bps from the fourth quarter of 2020 and down 35 bps from the first quarter of 2020. The net impact of PPP loans and excess liquidity impacted the NIM by 8 bps in the both the first quarter and fourth quarter of 2020. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 3 bps from the prior quarter primarily due to an 8 bps decline in earning asset yields partially offset by a 6 bps decline in the cost of interest bearing liabilities and a $141 million increase in average checking deposit account balances during the quarter.
    • Earning asset yields for the three months ended March 31, 2021 were down 8 bps from the prior quarter and down 69 bps from the same quarter in the prior year. Earning assets grew $155.5 million or 1.6% from the prior quarter and grew $1.3 billion or 14.4% from the same quarter in the prior year. The following are highlights from the prior quarter:
      • Excess liquidity resulted in a $34.8 million increase in the average balances of short-term interest bearing accounts.
      • The average balance of investment securities increased $83.0 million while yields declined 6 bps.
      • Loan yields decreased 4 bps to 4.02% for the quarter. Excluding PPP loans, yields decreased 7 bps from the prior quarter driven by a 12 bps yield reduction in the commercial loan portfolio.
    • Total cost of deposits was 0.14% for the first quarter of 2021, down 3 bps from the prior quarter and down 34 bps from the same period in the prior year.
    • The cost of interest-bearing liabilities for the three months ended March 31, 2021 was 0.34%, down 6 bps compared to the prior quarter of 0.40% and down 48 bps from the first quarter of 2020 of 0.82%.
      • Cost of interest-bearing deposits decreased 5 bps from the prior quarter and decreased 48 bps from the same quarter in 2020.

    Credit Quality and Allowance for Credit Losses

    • Net charge-offs to total average loans of 12 bps (13 bps excluding PPP loans) compared to 21 bps (22 bps excluding PPP loans) in the prior quarter and 32 bps in the first quarter of 2020. The decrease in charge-offs during the first quarter of 2021 was primarily due to lower charge-offs in commercial and indirect auto, which continue to be at lower levels due to pandemic relief programs.
    • Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans) compared to 0.45% (0.47% excluding PPP loans) at December 31, 2020.
    • Provision expense for the three months ended March 31, 2021 was ($2.8) million and net charge-offs were $2.2 million. Provision expense decreased $2.2 million from the fourth quarter of 2020 and decreased $32.4 million from the first quarter of 2020. The decrease in provision expense from the prior quarter and first quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an improved economic forecast.
    • The allowance for loan losses was $105.0 million or 1.38% (1.48% excluding PPP loans and related allowance) of total loans compared to 1.47% (1.56% excluding PPP loans and related allowance) at December 31, 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.
    • As of April 12, 2021, 1.0% of loans (loans outstanding as of March 31, 2021; excluding PPP balances) are in payment deferral programs which is down from the second quarter 2020 peak of 14.9%.
    • The reserve for unfunded loan commitments decreased to $5.9 million at March 31, 2021 compared to the prior quarter at $6.4 million.

    Noninterest Income

    • Total noninterest income, excluding securities gains (losses), was $36.6 million for the three months ended March 31, 2021, down $1.4 million from the prior quarter and up $0.3 million from the prior year quarter.
    • Service charges on deposit accounts were lower than the prior quarter and lower than the first quarter of 2020. Overdraft charges have been lower during the COVID-19 pandemic.
    • ATM and debit card fees were comparable to the prior quarter and higher compared to the first quarter of 2020 due to increased volume and higher per transaction rates.
    • Retirement plan administration fees were higher than the prior quarter driven by market performance and organic growth, and higher than the first quarter of 2020 due to the April 1, 2020 acquisition of Alliance Benefit Group of Illinois, Inc. (“ABG”) contributing $1.7 million in revenues during the first quarter of 2021 and $1.5 million during the fourth quarter of 2020.
    • The decrease in other noninterest income from the prior quarter was primarily due to lower loan swap fee income and the decrease from the first quarter of 2020 was driven by lower loan swap fee income combined with lower mortgage banking income.

    Noninterest Expense

    • Total noninterest expense for the first quarter of 2021 was down 9.7% from the previous quarter and down 4.2% from the first quarter of 2020, primarily due to $4.1 million in branch optimization costs incurred during the fourth quarter of 2020.
    • Salaries and benefits increased from the prior quarter due to seasonally higher payroll taxes and stock-based compensation expenses and increased from the first quarter of 2020 driven by the addition of ABG’s salaries and benefits.
    • Data processing and communications increased from the prior quarter and the first quarter of 2020 driven by charges related to the addition of a digitized PPP platform.
    • Professional fees and outside services decreased from the prior quarter due to timing of initiatives.
    • Other expenses decreased $7.4 million from the prior quarter due to $4.1 million in branch optimization charges recognized in the prior quarter, a $1.4 million decrease in the provision for the reserve for unfunded commitments, lower travel training expenses and lower pension costs. The decrease from the first quarter of 2020 was due to a $2.5 million decrease in the reserve for unfunded commitments, lower travel training expenses during the COVID-19 pandemic and lower pension costs.

    Income Taxes

    • The effective tax rate was 21.9% for the first quarter of 2021 compared to 21.6% for the fourth quarter of 2020 and 14.2% for the first quarter of 2020. The increase from the first quarter of 2020 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 8.00%. Tangible book value per share2 grew 1% from the prior quarter and 9% from the prior year quarter to $20.71.
    • March 31, 2021 CET1 capital ratio of 12.13%, leverage ratio of 9.60 % and total risk-based capital ratio of 15.92 %.

    Stock Repurchase and Dividend

    • The Company purchased 257,031 shares of common stock during the first quarter of 2021 at a weighted average price of $35.09 excluding commissions. As of March 31, 2021, there were 1,742,969 shares available for repurchase under this plan, which expires on December 31, 2021.
    • The Board of Directors approved a second-quarter cash dividend of $0.27 per share at a meeting held today. The dividend will be paid on June 15, 2021 to shareholders of record as of June 1, 2021.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 27, 2021, to review first 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 $11.5 billion at March 31, 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 141 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine, and is currently entering Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service 401(k) plan 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
     John V. Moran, 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  
     1st Q4th Q3rd Q2nd Q1st Q 
    Profitability:      
    Diluted earnings per share$ 0.91 $0.78 $0.80 $0.56 $0.23  
    Weighted average diluted common shares outstanding 43,889,889  43,973,971  43,941,953  43,928,344  44,130,324  
    Return on average assets3 1.46% 1.24% 1.29% 0.94% 0.43% 
    Return on average equity3 13.57% 11.59% 12.09% 8.76% 3.69% 
    Return on average tangible common equity1 3 18.24% 15.71% 16.51% 12.14% 5.24% 
    Net interest margin1 3 3.17% 3.20% 3.17% 3.38% 3.52% 
           
      2021  2020  
     1st Q4th Q3rd Q2nd Q1st Q 
    Balance sheet data:      
    Securities available for sale$ 1,387,028 $1,348,698 $1,197,925 $1,108,443 $1,000,980  
    Securities held to maturity 592,999  616,560  663,088  599,164  621,359  
    Net loans 7,528,459  7,388,885  7,446,143  7,514,491  7,147,383  
    Total assets 11,537,253  10,932,906  10,850,212  10,847,184  9,953,543  
    Total deposits 9,815,930  9,081,692  8,958,183  8,815,891  7,864,638  
    Total borrowings 308,766  406,731  446,737  602,988  714,283  
    Total liabilities 10,346,272  9,745,288  9,684,101  9,704,532  8,841,364  
    Stockholders' equity 1,190,981  1,187,618  1,166,111  1,142,652  1,112,179  
           
    Capital:      
    Equity to assets 10.32% 10.86% 10.75% 10.53% 11.17% 
    Tangible equity ratio1 8.00% 8.41% 8.27% 8.04% 8.55% 
    Book value per share$ 27.43 $27.22 $26.74 $26.20 $25.52  
    Tangible book value per share2$ 20.71 $20.52 $20.02 $19.46 $18.96  
    Leverage ratio 9.60% 9.56% 9.48% 9.44% 10.02% 
    Common equity tier 1 capital ratio 12.13% 11.84% 11.63% 11.34% 10.90% 
    Tier 1 capital ratio 13.38% 13.09% 12.88% 12.60% 12.14% 
    Total risk-based capital ratio 15.92% 15.62% 15.43% 15.15% 13.36% 
    Common stock price (end of period)$ 39.90 $32.10 $26.82 $30.06 $32.39  
      



    NBT Bancorp Inc. and Subsidiaries 
    Selected Financial Data 
    (unaudited, dollars in thousands except per share data) 
           
      2021  2020  
     1st Q4th Q3rd Q2nd Q1st Q 
    Asset quality:      
    Nonaccrual loans$ 43,399 $44,647 $35,896 $25,567 $29,972  
    90 days past due and still accruing 2,155  3,149  2,579  2,057  2,280  
    Total nonperforming loans 45,554  47,796  38,475  27,624  32,252  
    Other real estate owned 1,318  1,458  1,605  1,783  2,384  
    Total nonperforming assets 46,872  49,254  40,080  29,407  34,636  
    Allowance for loan losses 105,000  110,000  114,500  113,500  100,000  
           
    Asset quality ratios (total):      
    Allowance for loan losses to total loans 1.38% 1.47% 1.51% 1.49% 1.38% 
    Total nonperforming loans to total loans 0.60% 0.64% 0.51% 0.36% 0.45% 
    Total nonperforming assets to total assets 0.41% 0.45% 0.37% 0.27% 0.35% 
    Allowance for loan losses to total nonperforming loans 230.50% 230.14% 297.60% 410.87% 310.06% 
    Past due loans to total loans 0.22% 0.37% 0.26% 0.30% 0.51% 
    Net charge-offs to average loans3 0.12% 0.21% 0.12% 0.28% 0.32% 
           
    Asset quality ratios (excluding paycheck protection program):    
    Allowance for loan losses to total loans 1.48% 1.56% 1.62% 1.59% 1.38% 
    Total nonperforming loans to total loans 0.64% 0.68% 0.55% 0.39% 0.45% 
    Total nonperforming assets to total assets 0.43% 0.47% 0.39% 0.28% 0.35% 
    Allowance for loan losses to total nonperforming loans 230.44% 230.10% 297.53% 410.78% 310.06% 
    Past due loans to total loans 0.23% 0.39% 0.28% 0.32% 0.51% 
    Net charge-offs to average loans3 0.13% 0.22% 0.13% 0.30% 0.32% 
           



    NBT Bancorp Inc. and Subsidiaries   
    Consolidated Balance Sheets  
    (unaudited, dollars in thousands)  
         
     March 31,December 31,
    		  
    Assets 2021 2020  
    Cash and due from banks$ 182,830$159,995  
    Short-term interest bearing accounts 972,195 512,686  
    Equity securities, at fair value 32,247 30,737  
    Securities available for sale, at fair value 1,387,028 1,348,698  
    Securities held to maturity (fair value $600,176 and $636,827, respectively) 592,999 616,560  
    Federal Reserve and Federal Home Loan Bank stock 25,127 27,353  
    Loans held for sale 1,295 1,119  
    Loans 7,633,459 7,498,885  
    Less allowance for loan losses 105,000 110,000  
    Net loans$ 7,528,459$7,388,885  
    Premises and equipment, net 72,705 74,206  
    Goodwill 280,541 280,541  
    Intangible assets, net 10,923 11,735  
    Bank owned life insurance 187,458 186,434  
    Other assets 263,446 293,957  
    Total assets$ 11,537,253$10,932,906  
         
    Liabilities and stockholders' equity    
    Demand (noninterest bearing)$ 3,495,622$3,241,123  
    Savings, NOW and money market 5,715,935 5,207,090  
    Time 604,373 633,479  
    Total deposits$ 9,815,930$9,081,692  
    Short-term borrowings 95,339 168,386  
    Long-term debt 14,069 39,097  
    Subordinated debt, net 98,162 98,052  
    Junior subordinated debt 101,196 101,196  
    Other liabilities 221,576 256,865  
    Total liabilities$ 10,346,272$9,745,288  
         
    Total stockholders' equity$ 1,190,981$1,187,618  
         
    Total liabilities and stockholders' equity$ 11,537,253$10,932,906  
         



    NBT Bancorp Inc. and Subsidiaries 
    Quarterly Consolidated Statements of Income 
    (unaudited, dollars in thousands except per share data) 
           
      2021  2020  
     1st Q4th Q3rd Q2nd Q1st Q 
    Interest, fee and dividend income      
    Interest and fees on loans$ 75,093 $76,863 $74,998$77,270$78,728  
    Securities available for sale 5,544  5,478  5,603 5,600 5,753  
    Securities held to maturity 3,382  3,532  3,734 3,926 4,091  
    Other 291  568  659 650 829  
    Total interest, fee and dividend income$ 84,310 $86,441 $84,994$87,446$89,401  
    Interest expense      
    Deposits$ 3,172 $3,887 $4,267$4,812$9,104  
    Short-term borrowings 70  193  446 972 1,797  
    Long-term debt 124  369  398 393 393  
    Subordinated debt 1,359  1,339  1,375 128 -  
    Junior subordinated debt 530  545  565 695 926  
    Total interest expense$ 5,255 $6,333 $7,051$7,000$12,220  
    Net interest income$ 79,055 $80,108 $77,943$80,446$77,181  
    Provision for loan losses (2,796) (607) 3,261 18,840 29,640  
    Net interest income after provision for loan losses$ 81,851 $80,715 $74,682$61,606$47,541  
    Noninterest income      
    Service charges on deposit accounts$ 3,027 $3,588 $3,087$2,529$3,997  
    ATM and debit card fees 6,862  6,776  7,194 6,136 5,854  
    Retirement plan administration fees 10,098  9,011  9,685 9,214 7,941  
    Wealth management 7,910  7,456  7,695 6,823 7,273  
    Insurance 3,461  3,454  3,742 3,292 4,269  
    Bank owned life insurance income 1,381  1,733  1,255 1,381 1,374  
    Net securities gains (losses) 467  160  84 180 (812) 
    Other 3,832  5,937  4,985 5,456 5,527  
    Total noninterest income$ 37,038 $38,115 $37,727$35,011$35,423  
    Noninterest expense      
    Salaries and employee benefits$ 41,601 $41,016 $40,451$39,717$40,750  
    Occupancy 5,873  5,280  5,294 5,065 5,995  
    Data processing and communications 4,731  4,157  4,058 4,079 4,233  
    Professional fees and outside services 3,589  4,388  3,394 3,403 3,897  
    Equipment 5,177  5,395  5,073 4,779 4,642  
    Office supplies and postage 1,499  1,517  1,530 1,455 1,636  
    FDIC expense 808  739  645 993 311  
    Advertising 451  827  530 322 609  
    Amortization of intangible assets 812  822  856 883 834  
    Loan collection and other real estate owned, net 590  930  620 728 1,017  
    Other 2,757  10,133  3,857 3,916 6,957  
    Total noninterest expense$ 67,888 $75,204 $66,308$65,340$70,881  
    Income before income tax expense$ 51,001 $43,626 $46,101$31,277$12,083  
    Income tax expense 11,155  9,432  10,988 6,564 1,715  
       Net income$ 39,846 $34,194 $35,113$24,713$10,368  
    Earnings Per Share      
    Basic$ 0.91 $0.78 $0.80$0.57$0.24  
    Diluted$ 0.91 $0.78 $0.80$0.56$0.23  
           



    NBT Bancorp Inc. and Subsidiaries 
    Average Quarterly Balance Sheets 
    (unaudited, dollars in thousands) 
                 
      Average BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / Rates 
      Q1 - 2021Q4 - 2020Q3 - 2020Q2 - 2020Q1 - 2020 
    Assets            
    Short-term interest bearing accounts $ 587,3580.09%$552,5290.11%$477,9460.11%$380,2600.10%$74,6951.28% 
    Securities available for sale1 4  1,346,3801.67% 1,230,4111.77% 1,137,6041.96% 985,5612.29% 962,5272.40% 
    Securities held to maturity1 4  607,4072.43% 640,4222.36% 621,8122.56% 613,8992.75% 622,3982.81% 
    Investment in FRB and FHLB Banks  25,6062.45% 28,2755.94% 29,7207.08% 36,6046.09% 39,7845.97% 
    Loans1 5  7,574,3374.02% 7,533,9534.06% 7,559,2183.95% 7,589,0324.10% 7,163,1144.42% 
    Total interest earning assets $ 10,141,0883.38%$9,985,5903.46%$9,826,3003.45%$9,605,3563.68%$8,862,5184.07% 
    Other assets  960,994  954,123  967,194  961,807  885,570  
    Total assets $ 11,102,082 $10,939,713 $10,793,494  $10,567,163  $9,748,088  
                 
    Liabilities and stockholders' equity          
    Money market deposit accounts $ 2,484,1200.23%$2,455,5100.27%$2,364,6060.28%$2,360,4070.29%$2,101,3061.00% 
    NOW deposit accounts  1,358,9550.05% 1,315,3700.05% 1,207,0640.05% 1,167,4860.04% 1,086,2050.10% 
    Savings deposits  1,547,9830.05% 1,465,5620.05% 1,447,0210.05% 1,383,4950.05% 1,276,2850.06% 
    Time deposits  615,3430.93% 645,2881.15% 684,7081.31% 760,8031.48% 842,9891.62% 
    Total interest bearing deposits $ 6,006,4010.21%$5,881,7300.26%$5,703,3990.30%$5,672,1910.34%$5,306,7850.69% 
    Short-term borrowings  115,1820.25% 175,5970.44% 277,8900.64% 427,0040.92% 533,5161.35% 
    Long-term debt  19,9132.53% 59,4882.47% 64,1372.47% 64,1652.46% 64,1942.46% 
    Subordinated debt, net  98,0955.62% 97,9845.44% 97,9345.59% 8,6335.96% --  
    Junior subordinated debt  101,1962.12% 101,1962.14% 101,1962.22% 101,1962.76% 101,1963.68% 
    Total interest bearing liabilities $ 6,340,7870.34%$6,315,9950.40%$6,244,5560.45%$6,273,1890.45%$6,005,6910.82% 
    Demand deposits  3,319,024  3,178,410  3,111,617  2,887,545  2,398,307  
    Other liabilities  250,991  271,206  282,265  271,635  214,495  
    Stockholders' equity  1,191,280  1,174,102  1,155,056  1,134,794  1,129,595  
    Total liabilities and stockholders' equity $ 11,102,082 $10,939,713 $10,793,494  $10,567,163  $9,748,088  
                 
    Interest rate spread  3.04% 3.06% 3.00% 3.23% 3.25% 
    Net interest margin (FTE)1  3.17% 3.20% 3.17% 3.38% 3.52% 
                 



    NBT Bancorp Inc. and Subsidiaries 
    Consolidated Loan Balances 
    (unaudited, dollars in thousands) 
           
    The following table presents loans by line of business, paycheck protection program loans includes $14.2 million, $6.9 million, $11.3 million and $14.6 million in unamortized fees as of March 31, 2021 December 31, 2020 September 30, 2020 and June 30, 2020, respectively. 
     
     
           
      2021  2020  
     1st Q4th Q3rd Q2nd Q1st Q 
    Commercial$ 1,271,319 $1,267,679 $1,297,408 $1,318,806 $1,338,609  
    Commercial real estate 2,437,811  2,380,358  2,281,843  2,256,580  2,242,139  
    Paycheck protection program 536,494  430,810  514,558  510,097  -  
    Residential real estate mortgages 1,478,216  1,466,662  1,448,530  1,460,058  1,446,676  
    Indirect auto 913,083  931,286  989,369  1,091,889  1,184,888  
    Specialty lending 577,509  579,644  566,973  515,618  539,378  
    Home equity 369,633  387,974  404,346  415,528  431,536  
    Other consumer 49,394  54,472  57,616  59,415  64,157  
      Total loans$ 7,633,459 $7,498,885 $7,560,643 $7,627,991 $7,247,383  
           
    The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of March 31, 2021 excluding PPP loans: 
     
           
    Industry% of Total Loans     
    Accommodations 2.4%     
    Healthcare services and practices 2.2%     
    Restaurants and entertainment 1.8%     
    Retailers 1.7%     
    Automotive 1.4%     
    Total 9.5%     
           
    Allowance for Loan Losses as a Percentage of Loans by Segment:   
           
      2020  2021  
     1st Q2nd Q3rd Q4th Q1st Q 
    Commercial & industrial 1.43% 1.25% 1.34% 1.34% 1.20% 
    Commercial real estate 1.10% 1.56% 1.57% 1.49% 1.48% 
    Paycheck protection program 0.00% 0.01% 0.01% 0.01% 0.01% 
    Residential real estate 0.99% 1.13% 1.21% 1.07% 1.03% 
    Auto 1.08% 0.99% 0.92% 0.93% 0.78% 
    Other consumer 4.00% 5.01% 4.66% 4.55% 4.34% 
    Total 1.38% 1.49% 1.51% 1.47% 1.38% 
           
    Total excluding PPP loans 1.38% 1.59% 1.62% 1.56% 1.48% 
           



            
    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  
      1st Q4th Q3rd Q2nd Q1st Q 
     Income before income tax expense$ 51,001 $43,626 $46,101 $31,277 $12,083  
     FTE adjustment 302  318  325  329  329  
     Provision for loan losses (2,796) (607) 3,261  18,840  29,640  
     Net securities (gains) losses (467) (160) (84) (180) 812  
     Nonrecurring expense -  4,100  -  650  -  
     Unfunded loan commitments reserve (500) 900  -  (200) 2,000  
     PPNR$ 47,540 $48,177 $49,603 $50,716 $44,864  
            
     Average Assets$ 11,102,082 $10,939,713 $10,793,494 $10,567,163 $9,748,088  
            
     Return on Average Assets3 1.46% 1.24% 1.29% 0.94% 0.43% 
     PPNR Return on Average Assets3 1.74% 1.75% 1.83% 1.93% 1.85% 
            
     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 loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic, net securities gains (losses) and non-recurring income and/or expense. 
      
      
            
     FTE Adjustment 2021  2020  
      1st Q4th Q3rd Q2nd Q1st Q 
     Net interest income$ 79,055 $80,108 $77,943 $80,446 $77,181  
     Add: FTE adjustment 302  318  325  329  329  
     Net interest income (FTE)$ 79,357 $80,426 $78,268 $80,775 $77,510  
     Average earning assets$ 10,141,088 $9,985,590 $9,826,300 $9,605,356 $8,862,518  
     Net interest margin (FTE)3 3.17% 3.20% 3.17% 3.38% 3.52% 
            
     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 assets 2021  2020   
      1st Q4th Q3rd Q2nd Q1st Q  
     Total equity$ 1,190,981 $1,187,618 $1,166,111 $1,142,652 $1,112,179   
     Intangible assets 291,464  292,276  293,098  293,954  285,955   
     Total assets$ 11,537,253 $10,932,906 $10,850,212 $10,847,184 $9,953,543   
     Tangible equity to tangible assets 8.00% 8.41% 8.27% 8.04% 8.55%  
             
     Return on average tangible common equity 2021  2020   
      1st Q4th Q3rd Q2nd Q1st Q  
     Net income$ 39,846 $34,194 $35,113 $24,713 $10,368   
     Amortization of intangible assets (net of tax) 609  617  642  662  626   
     Net income, excluding intangibles amortization$ 40,455 $34,811 $35,755 $25,375 $10,994   
             
     Average stockholders' equity$ 1,191,280 $1,174,102 $1,155,056 $1,134,794 $1,129,595   
     Less: average goodwill and other intangibles 291,921  292,725  293,572  294,423  286,400   
     Average tangible common equity$ 899,359 $881,377 $861,484 $840,371 $843,195   
     Return on average tangible common equity3 18.24% 15.71% 16.51% 12.14% 5.24%  
             
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.  
    3Annualized.       
    4Securities are shown at average amortized cost.      
    5For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. 
             



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