• NBT Bancorp Inc. Announces Third Quarter Net Income of $37.4 Million ($0.86 per Diluted Common Share); Approves Dividend

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

    NORWICH, N.Y., Oct. 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 nine months ended September 30, 2021.

    Net income for the three months ended September 30, 2021 was $37.4 million, or $0.86 per diluted common share. Net income increased $2.3 million from the third quarter of 2020, primarily due to changes in the estimated impact of the COVID-19 pandemic on expected credit losses. The third quarter 2020 provision for loan losses was $3.3 million compared to the third quarter 2021 provision release of $3.3 million. Net income decreased $2.9 million from the previous quarter primarily due to a lower net benefit from provision for loan losses and slightly higher noninterest expense, partly offset by higher noninterest income.

    Pre-provision net revenue (“PPNR”)1 for the third quarter of 2021 was $47.4 million compared to $49.0 million in the previous quarter and $49.6 million in the third quarter of 2020. Income from Paycheck Protection Program (“PPP”) loans decreased $1.9 million and $1.8 million from the previous quarter and the third quarter of 2020, respectively.

    CEO Comments

    “We continue to experience momentum across the markets we serve. Our team is focused on our customers and successful execution of our key strategies,” said NBT President and CEO John H. Watt, Jr. “Across our New England footprint, we are advancing our growth strategy by leveraging the market disruption occurring in that region. Our balance sheet is strong and it continues to provide us optionality to deploy capital in a strategic manner, and we are actively exploring opportunities.”

    Third Quarter Financial Highlights

    Net Income
    • Net income of $37.4 million
    • Diluted earnings per share of $0.86
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent basis was $78.0 million1
    • Net interest margin (“NIM”) on a fully taxable equivalent basis was 2.88%1, down 12 basis points (“bps”) from the prior quarter
    • Total cost of deposits of 0.10%
    PPNR
    • PPNR1 was $47.4 million compared to $49.0 million in the second quarter of 2021 and $49.6 million in the third quarter of 2020
    Loans and Credit Quality
    • Period end total loans were $7.6 billion, up 1%, annualized, from December 31, 2020
    • Excluding $276 million and $431 million of PPP loans at September 30, 2021 and December 31, 2020, respectively, period end loans increased $222 million or 3% from December 31, 2020
    • Allowance for loan losses to total loans of 1.23% (1.28% excluding PPP loans and related allowance), down 8 bps from the second quarter 2021 (down 10 bps excluding PPP loans and related allowance)
    • Net charge-offs to average loans was 0.11%, annualized (0.12% excluding PPP loans)
    • Nonperforming loans to total loans was 0.51% (0.53% excluding PPP loans), down from 0.57% in the prior quarter
    Capital
    • Tangible book value per share2 grew 2% for the quarter and 10% from prior year to $21.95 at September 30, 2021
    • Tangible equity to assets of 8.13%1
    • CET1 ratio of 12.20%; Leverage ratio of 9.47%

    Loans

    • Period end total loans were $7.6 billion at September 30, 2021 and $7.5 billion at December 31, 2020.
    • Excluding PPP loans, period end loans increased $222 million from December 31, 2020. Commercial and industrial loans increased $15.0 million to $1.5 billion; commercial real estate loans increased $123.9 million to $2.3 billion; and total consumer loans increased $83.3 million to $3.5 billion.
    • Total PPP loans as of September 30, 2021 were $276 million (net of unamortized fees). The following activity occurred during the third quarter of 2021:
      • $84.7 million of loans forgiven
      • $2.9 million of interest and fees recognized into interest income compared to $4.7 million for the second quarter of 2021
    • Commercial line of credit utilization rate was 21% at September 30, 2021 compared to 22% at June 30, 2021 and compared to 25% at September 30, 2020.

    Deposits

    • Average total deposits in the third quarter of 2021 were $10.0 billion, compared to $9.9 billion in the second quarter of 2021, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts, partly offset by the decrease in money market deposit accounts and time deposits accounts.
    • Loan to deposit ratio was 74.2% at September 30, 2021, compared to 82.6% at December 31, 2020.

    Net Interest Income and Net Interest Margin

    • Net interest income for the third quarter of 2021 was $77.7 million, which was down $1.5 million or 1.9% from the second quarter of 2021 and down $0.3 million or 0.3% from the third quarter of 2020.
    • The NIM on a fully taxable equivalent (“FTE”) basis for the third quarter of 2021 was 2.88%, down 12 bps from the second quarter of 2021 and down 29 bps from the third quarter of 2020. The net impact of income from PPP loans and excess liquidity negatively impacted the NIM by 26 bps in the third quarter of 2021 compared to a negative 24 bps impact in the second quarter 2021. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 10 bps from the prior quarter primarily due to an 11 bp decline in earning asset yields partially offset by a 1 bp decline in the cost of interest bearing liabilities.
    • Earning asset yields for the three months ended September 30, 2021 were down 13 bps from the prior quarter and down 40 bps from the same quarter in the prior year. Earning assets grew $96.4 million or 0.9% from the prior quarter and grew $901.2 million or 9.2% from the same quarter in the prior year. The following are highlights comparing the third quarter 2021 to the prior quarter:
      • Excess liquidity resulted in a $40.0 million increase in the average balances of short-term interest bearing accounts with a yield of 0.16%.
      • The average balance of investment securities increased $112.8 million while yields declined 11 bps.
      • Loan yields decreased 12 bps to 3.84% for the quarter. Excluding PPP loans, yields decreased 10 bps from the prior quarter.
    • Total cost of deposits was 0.10% for the third quarter of 2021, down 2 bps from the prior quarter and down 9 bps from the same period in the prior year.
    • The cost of interest-bearing liabilities for the three months ended September 30, 2021 was 0.27%, down 2 bps compared to the prior quarter of 0.29% and down 18 bps from the third quarter of 2020 of 0.45%.

    Credit Quality and Allowance for Credit Losses

    • Net charge-offs to total average loans of 11 bps (12 bps excluding PPP loans) compared to 7 bps (7 bps excluding PPP loans) in the prior quarter and 12 bps (13 bps excluding PPP loans) in the third quarter of 2020. 36% of the quarter’s net charge-offs were reserved for previously.
    • Nonperforming assets to total assets was 0.33% (0.34% excluding PPP loans) compared to 0.38% (0.39% excluding PPP loans) at June 30, 2021 and 0.37% (0.39% excluding PPP loans) at September 30, 2020.
    • Provision expense for the three months ended September 30, 2021 was a net benefit of $3.3 million with net charge-offs of $2.2 million. The net provision benefit was $1.9 million less than the second quarter of 2021 compared to provision expense of $3.3 million in the third quarter of 2020. The increase in net provision benefit from the third quarter of 2020 was primarily due to the impacts of an improved economic forecast on the required level of allowance for loan losses.
    • The allowance for loan losses was $93.0 million or 1.23% (1.28% excluding PPP loans and related allowance) of total loans compared to 1.31% (1.38% excluding PPP loans and related allowance) at June 30, 2021 and 1.51% (1.62% excluding PPP loans and related allowance) at September 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 $5.3 million at September 30, 2021 compared to the prior quarter at $5.8 million.

    Noninterest Income

    • Total noninterest income, excluding securities gains (losses), was $40.4 million for the three months ended September 30, 2021, up $1.3 million from the prior quarter and up $2.8 million from the prior year quarter.
    • Service charges on deposit accounts were higher than the prior quarter and the third quarter of 2020, but still significantly below pre-pandemic levels.
    • ATM and debit card fees were comparable to the prior quarter and higher than the third quarter of 2020 due to increased volume and higher per transaction rates.
    • Retirement plan administration fees were higher than the prior quarter and higher than the third quarter of 2020 driven by market performance and organic growth in relationships.
    • Wealth management fees were higher than both the prior quarter and third quarter of 2020 driven by market performance and additional new customers.
    • Other noninterest income decreased from the prior quarter due to lower swap fee income and decreased from the third quarter of 2020 driven by lower mortgage banking income.

    Noninterest Expense

    • Total noninterest expense for the third quarter of 2021 was up 2.0% from the previous quarter and up 9.9% from the third quarter of 2020.
    • Salaries and benefits increased from the prior quarter and the third quarter of 2020 due to one additional day of payroll in the third quarter, increased medical expenses and higher incentive compensation accruals.
    • Data processing and communications decreased from the prior quarter driven by lower expenses related to processing of PPP loans and was comparable to the third quarter of 2020.
    • Equipment expense was comparable to the prior quarter and higher than the third quarter of 2020 due to higher technology costs associated with several digital upgrades.
    • Other expenses increased from the prior quarter and the third quarter of 2020 and included $2.3 million in non-recurring costs, primarily from estimated litigation settlement costs related to a pending lawsuit regarding certain of the Company’s deposit products and related disclosures. The Company does not anticipate further material accruals related to this legal matter.

    Income Taxes

    • The effective tax rate was 22.8% for the third quarter of 2021 compared to 22.9% for the second quarter of 2021 and 23.8% for the third quarter of 2020. The lower effective tax rate compared to the third quarter of 2020 was due to the change in the level of taxable income to bring the nine months ended September 30, 2020 estimated effective tax rate to 21.75%.

    Capital

    • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.13%. Tangible book value per share2 grew 2% from the prior quarter and 10% from the prior year quarter to $21.95.
    • September 30, 2021 CET1 capital ratio of 12.20%, leverage ratio of 9.47% and total risk-based capital ratio of 15.74%.

    Dividend and Stock Repurchase

    • The Board of Directors approved a fourth-quarter cash dividend of $0.28 per share at a meeting held yesterday, an increase of 3.7% from the amount paid in the fourth quarter of 2020. The dividend will be paid on December 15, 2021 to shareholders of record as of December 1, 2021.
    • The Company purchased 119,342 shares of common stock during the third quarter of 2021 at a weighted average price of $35.30 excluding commissions. As of September 30, 2021, there were 1,600,000 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) Wednesday, October 27, 2021, to review third 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 $12.0 billion at September 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, the speed and effectiveness of vaccine and treatment developments and deployment, 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.

     


     
    NBT Bancorp Inc. and Subsidiaries
    Selected Financial Data
    (unaudited, dollars in thousands except per share data)
          
     20212020
     3rd Q2nd Q1st Q4th Q3rd Q
    Profitability:     
    Diluted earnings per share$ 0.86 $0.92 $0.91 $0.78 $0.80 
    Weighted average diluted common shares outstanding 43,631,497  43,792,940  43,889,889  43,973,971  43,941,953 
    Return on average assets3 1.26% 1.39% 1.46% 1.24% 1.29%
    Return on average equity3 12.04% 13.42% 13.57% 11.59% 12.09%
    Return on average tangible common equity1 3 15.97% 17.93% 18.24% 15.71% 16.51%
    Net interest margin1 3 2.88% 3.00% 3.17% 3.20% 3.17%
          
     9 Months Ended
    September 30,    		   
      2021  2020    
    Profitability:     
    Diluted earnings per share$ 2.69 $1.60    
    Weighted average diluted common shares outstanding 43,768,647  43,996,637    
    Return on average assets3 1.37% 0.90%   
    Return on average equity3 13.00% 8.23%   
    Return on average tangible common equity1 3 17.35% 11.36%   
    Net interest margin1 3 3.01% 3.35%   
          
     20212020
     3rd Q2nd Q1st Q4th Q3rd Q
    Balance sheet data:     
    Short-term interest bearing accounts$ 1,131,074 $883,758 $972,195 $512,686 $450,291 
    Securities available for sale 1,576,030  1,534,733  1,387,028  1,348,698  1,197,925 
    Securities held to maturity 683,103  622,351  592,999  616,560  663,088 
    Net loans 7,473,442  7,419,127  7,528,459  7,388,885  7,446,143 
    Total assets 11,994,411  11,574,947  11,537,253  10,932,906  10,850,212 
    Total deposits 10,195,178  9,785,257  9,815,930  9,081,692  8,958,183 
    Total borrowings 313,311  304,110  308,766  406,731  446,737 
    Total liabilities 10,752,954  10,349,891  10,346,272  9,745,288  9,684,101 
    Stockholders' equity 1,241,457  1,225,056  1,190,981  1,187,618  1,166,111 
          
    Capital:     
    Equity to assets 10.35% 10.58% 10.32% 10.86% 10.75%
    Tangible equity ratio1 8.13% 8.28% 8.00% 8.41% 8.27%
    Book value per share$ 28.65 $28.19 $27.43 $27.22 $26.74 
    Tangible book value per share2$ 21.95 $21.50 $20.71 $20.52 $20.02 
    Leverage ratio 9.47% 9.40% 9.60% 9.56% 9.48%
    Common equity tier 1 capital ratio 12.20% 12.12% 12.13% 11.84% 11.63%
    Tier 1 capital ratio 13.39% 13.34% 13.38% 13.09% 12.88%
    Total risk-based capital ratio 15.74% 15.78% 15.92% 15.62% 15.43%
    Common stock price (end of period)$ 36.12 $35.97 $39.90 $32.10 $26.82 
     


    NBT Bancorp Inc. and Subsidiaries
    Asset Quality and Consolidated Loan Balances
    (unaudited, dollars in thousands)
          
      2021  2020 
     3rd Q2nd Q1st Q4th Q3rd Q
    Asset quality:     
    Nonaccrual loans$ 35,737 $40,550 $43,399 $44,647 $35,896 
    90 days past due and still accruing 2,940  2,575  2,155  3,149  2,579 
    Total nonperforming loans 38,677  43,125  45,554  47,796  38,475 
    Other real estate owned 859  798  1,318  1,458  1,605 
    Total nonperforming assets 39,536  43,923  46,872  49,254  40,080 
    Allowance for loan losses 93,000  98,500  105,000  110,000  114,500 
          
    Asset quality ratios (total):     
    Allowance for loan losses to total loans 1.23% 1.31% 1.38% 1.47% 1.51%
    Total nonperforming loans to total loans 0.51% 0.57% 0.60% 0.64% 0.51%
    Total nonperforming assets to total assets 0.33% 0.38% 0.41% 0.45% 0.37%
    Allowance for loan losses to total nonperforming loans 240.45% 228.41% 230.50% 230.14% 297.60%
    Past due loans to total loans4 0.46% 0.26% 0.22% 0.37% 0.26%
    Net charge-offs to average loans3 0.11% 0.07% 0.12% 0.21% 0.12%
          
    Asset quality ratios (excluding paycheck protection program):    
    Allowance for loan losses to total loans 1.28% 1.38% 1.48% 1.56% 1.62%
    Total nonperforming loans to total loans 0.53% 0.60% 0.64% 0.68% 0.55%
    Total nonperforming assets to total assets 0.34% 0.39% 0.43% 0.47% 0.39%
    Allowance for loan losses to total nonperforming loans 240.42% 228.36% 230.44% 230.10% 297.53%
    Past due loans to total loans4 0.48% 0.27% 0.23% 0.39% 0.28%
    Net charge-offs to average loans3 0.12% 0.07% 0.13% 0.22% 0.13%
          
      2021  2020 
     3rd Q2nd Q1st Q4th Q3rd Q
    Allowance for loan losses as a percentage of loans by segment:    
    Commercial & industrial 0.83%  1.11%  1.20%  1.34%  1.34% 
    Commercial real estate 0.93%  1.26%  1.48%  1.49%  1.57% 
    Paycheck protection program 0.01%  0.01%  0.01%  0.01%  0.01% 
    Residential real estate 0.93%  0.98%  1.03%  1.07%  1.21% 
    Auto 0.78%  0.76%  0.78%  0.93%  0.92% 
    Other consumer 4.57%  4.27%  4.34%  4.55%  4.66% 
    Total 1.23%  1.31%  1.38%  1.47%  1.51% 
    Total excluding PPP loans 1.28%  1.38%  1.48%  1.56%  1.62% 
          
      2021  2020 
    Loans by line of business: 3rd Q2nd Q1st Q4th Q3rd Q
    Commercial$ 1,466,597 $1,479,258 $1,466,841 $1,451,560 $1,458,053 
    Commercial real estate 2,320,341  2,265,754  2,242,289  2,196,477  2,121,198 
    Paycheck protection program 276,195  359,738  536,494  430,810  514,558 
    Residential real estate mortgages 1,549,684  1,512,354  1,478,216  1,466,662  1,448,530 
    Indirect auto 873,860  899,324  913,083  931,286  989,369 
    Specialty lending 692,919  602,585  577,509  579,644  566,973 
    Home equity 339,316  351,469  369,633  387,974  404,346 
    Other consumer 47,530  47,145  49,394  54,472  57,616 
    Total loans$ 7,566,442 $7,517,627 $7,633,459 $7,498,885 $7,560,643 
          
    PPP unamortized fees (dollars in millions)$ 10.5 $12.6 $14.2 $6.9 $11.3 
          


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets
    (unaudited, dollars in thousands)
       
     September 30,December 31,
    Assets20212020
    Cash and due from banks$ 215,032 $159,995 
    Short-term interest bearing accounts 1,131,074  512,686 
    Equity securities, at fair value 33,013  30,737 
    Securities available for sale, at fair value 1,576,030  1,348,698 
    Securities held to maturity (fair value $689,129 and $636,827, respectively) 683,103  616,560 
    Federal Reserve and Federal Home Loan Bank stock 25,161  27,353 
    Loans held for sale 1,024  1,119 
    Loans 7,566,442  7,498,885 
    Less allowance for loan losses 93,000  110,000 
    Net loans$ 7,473,442 $7,388,885 
    Premises and equipment, net 71,928  74,206 
    Goodwill 280,541  280,541 
    Intangible assets, net 9,578  11,735 
    Bank owned life insurance 227,451  186,434 
    Other assets 267,034  293,957 
    Total assets$ 11,994,411 $10,932,906 
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$ 3,748,162 $3,241,123 
    Savings, NOW and money market 5,894,743  5,207,090 
    Time 552,273  633,479 
    Total deposits$ 10,195,178 $9,081,692 
    Short-term borrowings 99,715  168,386 
    Long-term debt 14,020  39,097 
    Subordinated debt, net 98,380  98,052 
    Junior subordinated debt 101,196  101,196 
    Other liabilities 244,465  256,865 
    Total liabilities$ 10,752,954 $9,745,288 
       
    Total stockholders' equity$ 1,241,457 $1,187,618 
       
    Total liabilities and stockholders' equity$ 11,994,411 $10,932,906 
       


    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,
     2021202020212020
    Interest, fee and dividend income    
    Interest and fees on loans$ 72,817 $74,998 $ 222,705 $230,996 
    Securities available for sale 5,898  5,603  17,204  16,956 
    Securities held to maturity 2,976  3,734  9,454  11,751 
    Other 524  659  1,206  2,138 
    Total interest, fee and dividend income$ 82,215 $84,994 $ 250,569 $261,841 
    Interest expense    
    Deposits$ 2,548 $4,267 $ 8,582 $18,183 
    Short-term borrowings 28  446  130  3,215 
    Long-term debt 89  398  301  1,184 
    Subordinated debt 1,359  1,375  4,077  1,503 
    Junior subordinated debt 517  565  1,572  2,186 
    Total interest expense$ 4,541 $7,051 $ 14,662 $26,271 
    Net interest income$ 77,674 $77,943 $ 235,907 $235,570 
    Provision for loan losses (3,342) 3,261  (11,354) 51,741 
    Net interest income after provision for loan losses$ 81,016 $74,682 $ 247,261 $183,829 
    Noninterest income    
    Service charges on deposit accounts$ 3,489 $3,087 $ 9,544 $9,613 
    ATM and debit card fees 8,172  7,194  23,343  19,184 
    Retirement plan administration fees 10,495  9,685  30,372  26,840 
    Wealth management fees 8,783  7,695  25,099  21,791 
    Insurance services 3,720  3,742  10,689  11,303 
    Bank owned life insurance income 1,548  1,255  4,588  4,010 
    Net securities (losses) gains (100) 84  568  (548)
    Other 4,222  4,985  12,480  15,968 
    Total noninterest income$ 40,329 $37,727 $ 116,683 $108,161 
    Noninterest expense    
    Salaries and employee benefits$ 44,190 $40,451 $ 128,462 $120,918 
    Occupancy 5,117  5,294  16,281  16,354 
    Data processing and communications 3,881  4,058  13,039  12,370 
    Professional fees and outside services 3,784  3,394  11,403  10,694 
    Equipment 5,577  5,073  16,247  14,494 
    Office supplies and postage 1,364  1,530  4,478  4,621 
    FDIC expense 772  645  2,243  1,949 
    Advertising 583  530  1,502  1,461 
    Amortization of intangible assets 663  856  2,157  2,573 
    Loan collection and other real estate owned, net 706  620  1,959  2,365 
    Other 6,232  3,857  14,405  14,730 
    Total noninterest expense$ 72,869 $66,308 $ 212,176 $202,529 
    Income before income tax expense$ 48,476 $46,101 $ 151,768 $89,461 
    Income tax expense 11,043  10,988  34,193  19,267 
    Net income$ 37,433 $35,113 $ 117,575 $70,194 
    Earnings Per Share    
    Basic$ 0.86 $0.80 $ 2.71 $1.61 
    Diluted$ 0.86 $0.80 $ 2.69 $1.60 
         


    NBT Bancorp Inc. and Subsidiaries
    Quarterly Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
          
     20212020
     3rd Q2nd Q1st Q4th Q3rd Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 72,817 $74,795 $75,093 $76,863 $74,998 
    Securities available for sale 5,898  5,762  5,544  5,478  5,603 
    Securities held to maturity 2,976  3,096  3,382  3,532  3,734 
    Other 524  391  291  568  659 
    Total interest, fee and dividend income$ 82,215 $84,044 $84,310 $86,441 $84,994 
    Interest expense     
    Deposits$ 2,548 $2,862 $3,172 $3,887 $4,267 
    Short-term borrowings 28  32  70  193  446 
    Long-term debt 89  88  124  369  398 
    Subordinated debt 1,359  1,359  1,359  1,339  1,375 
    Junior subordinated debt 517  525  530  545  565 
    Total interest expense$ 4,541 $4,866 $5,255 $6,333 $7,051 
    Net interest income$ 77,674 $79,178 $79,055 $80,108 $77,943 
    Provision for loan losses (3,342) (5,216) (2,796) (607) 3,261 
    Net interest income after provision for loan losses$ 81,016 $84,394 $81,851 $80,715 $74,682 
    Noninterest income     
    Service charges on deposit accounts$ 3,489 $3,028 $3,027 $3,588 $3,087 
    ATM and debit card fees 8,172  8,309  6,862  6,776  7,194 
    Retirement plan administration fees 10,495  9,779  10,098  9,011  9,685 
    Wealth management fees 8,783  8,406  7,910  7,456  7,695 
    Insurance services 3,720  3,508  3,461  3,454  3,742 
    Bank owned life insurance income 1,548  1,659  1,381  1,733  1,255 
    Net securities (losses) gains (100) 201  467  160  84 
    Other 4,222  4,426  3,832  5,937  4,985 
    Total noninterest income$ 40,329 $39,316 $37,038 $38,115 $37,727 
    Noninterest expense     
    Salaries and employee benefits$ 44,190 $42,671 $41,601 $41,016 $40,451 
    Occupancy 5,117  5,291  5,873  5,280  5,294 
    Data processing and communications 3,881  4,427  4,731  4,157  4,058 
    Professional fees and outside services 3,784  4,030  3,589  4,388  3,394 
    Equipment 5,577  5,493  5,177  5,395  5,073 
    Office supplies and postage 1,364  1,615  1,499  1,517  1,530 
    FDIC expense 772  663  808  739  645 
    Advertising 583  468  451  827  530 
    Amortization of intangible assets 663  682  812  822  856 
    Loan collection and other real estate owned, net 706  663  590  930  620 
    Other 6,232  5,416  2,757  10,133  3,857 
    Total noninterest expense$ 72,869 $71,419 $67,888 $75,204 $66,308 
    Income before income tax expense$ 48,476 $52,291 $51,001 $43,626 $46,101 
    Income tax expense 11,043  11,995  11,155  9,432  10,988 
    Net income$ 37,433 $40,296 $39,846 $34,194 $35,113 
    Earnings Per Share     
    Basic$ 0.86 $0.93 $0.91 $0.78 $0.80 
    Diluted$ 0.86 $0.92 $0.91 $0.78 $0.80 
          


    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 - 2021Q2 - 2021Q1 - 2021Q4 - 2020Q3 - 2020
    Assets           
    Short-term interest bearing accounts$ 1,014,120 0.16%$974,034 0.09%$587,358 0.09%$552,529 0.11%$477,946 0.11%
    Securities available for sale1 5  1,513,071 1.55% 1,453,068 1.59% 1,346,380 1.67% 1,230,411 1.77% 1,137,604 1.96%
    Securities held to maturity1 5  657,314 1.95% 604,582 2.23% 607,407 2.43% 640,422 2.36% 621,812 2.56%
    Investment in FRB and FHLB Banks 25,154 1.91% 25,115 2.67% 25,606 2.45% 28,275 5.94% 29,720 7.08%
    Loans1 6  7,517,839 3.84% 7,574,272 3.96% 7,574,337 4.02% 7,533,953 4.06% 7,559,218 3.95%
    Total interest earning assets $ 10,727,498 3.05%$10,631,071 3.18%$10,141,088 3.38%$9,985,590 3.46%$9,826,300 3.45%
    Other assets  1,019,797   971,681   960,994   954,123   967,194  
    Total assets $ 11,747,295  $11,602,752   $11,102,082   $10,939,713   $10,793,494   
                
                
    Liabilities and stockholders' equity         
    Money market deposit accounts $ 2,580,570 0.19%$2,605,767 0.21%$2,484,120 0.23%$2,455,510 0.27%$2,364,606 0.28%
    NOW deposit accounts  1,442,678 0.05% 1,454,751 0.05% 1,358,955 0.05% 1,315,370 0.05% 1,207,064 0.05%
    Savings deposits  1,691,539 0.05% 1,660,722 0.05% 1,547,983 0.05% 1,465,562 0.05% 1,447,021 0.05%
    Time deposits  565,216 0.62% 591,147 0.75% 615,343 0.93% 645,288 1.15% 684,708 1.31%
    Total interest bearing deposits $ 6,280,003 0.16%$6,312,387 0.18%$6,006,401 0.21%$5,881,730 0.26%$5,703,399 0.30%
    Short-term borrowings  99,703 0.11% 95,226 0.13% 115,182 0.25% 175,597 0.44% 277,890 0.64%
    Long-term debt  14,029 2.52% 14,053 2.51% 19,913 2.53% 59,488 2.47% 64,137 2.47%
    Subordinated debt, net  98,311 5.48% 98,204 5.55% 98,095 5.62% 97,984 5.44% 97,934 5.59%
    Junior subordinated debt  101,196 2.03% 101,196 2.08% 101,196 2.12% 101,196 2.14% 101,196 2.22%
    Total interest bearing liabilities $ 6,593,242 0.27%$6,621,066 0.29%$6,340,787 0.34%$6,315,995 0.40%$6,244,556 0.45%
    Demand deposits  3,676,883   3,542,176   3,319,024   3,178,410   3,111,617  
    Other liabilities  244,125   235,536   250,991   271,206   282,265  
    Stockholders' equity  1,233,045   1,203,974   1,191,280   1,174,102   1,155,056  
    Total liabilities and stockholders' equity $ 11,747,295  $11,602,752   $11,102,082   $10,939,713   $10,793,494   
                
    Interest rate spread  2.78% 2.89% 3.04% 3.06% 3.00%
    Net interest margin (FTE)1  2.88% 3.00% 3.17% 3.20% 3.17%
                


    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, 20212020
    Assets       
    Short-term interest bearing accounts $ 860,067 $ 763 0.12%$311,577 $464 0.20%
    Securities available for sale1 5  1,438,117  17,204 1.60% 1,028,962  16,956 2.20%
    Securities held to maturity1 5  623,284  10,237 2.20% 619,379  12,562 2.71%
    Investment in FRB and FHLB Banks  25,290  443 2.34% 35,349  1,674 6.33%
    Loans1 6  7,555,276  222,821 3.94% 7,437,566  231,168 4.15%
    Total interest earning assets $ 10,502,034 $ 251,468 3.20%$9,432,833 $262,824 3.72%
    Other assets  984,372    938,296   
    Total assets $ 11,486,406   $10,371,129   
            
    Liabilities and stockholders' equity       
    Money market deposit accounts $ 2,557,172 $ 4,022 0.21%$2,275,765 $8,646 0.51%
    NOW deposit accounts  1,419,102  531 0.05% 1,153,780  548 0.06%
    Savings deposits  1,633,941  625 0.05% 1,369,219  553 0.05%
    Time deposits  590,385  3,404 0.77% 762,548  8,436 1.48%
    Total interest bearing deposits $ 6,200,600 $ 8,582 0.19%$5,561,312 $18,183 0.44%
    Short-term borrowings  103,314  130 0.17% 412,312  3,215 1.04%
    Long-term debt  15,976  301 2.52% 64,165  1,184 2.46%
    Subordinated debt, net  98,204  4,077 5.55% 35,750  1,503 5.62%
    Junior subordinated debt  101,196  1,572 2.08% 101,196  2,186 2.89%
    Total interest bearing liabilities $ 6,519,290 $ 14,662 0.30%$6,174,735 $26,271 0.57%
    Demand deposits  3,514,005    2,800,297   
    Other liabilities  243,525    256,226   
    Stockholders' equity  1,209,586    1,139,871   
    Total liabilities and stockholders' equity $ 11,486,406   $10,371,129   
    Net interest income (FTE)1  $ 236,806   $236,553  
    Interest rate spread   2.90%  3.15%
    Net interest margin (FTE)1   3.01%  3.35%
    Taxable equivalent adjustment  $ 899   $983  
    Net interest income  $ 235,907   $235,570  
            


    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 
      3rd Q2nd Q1st Q4th Q3rd Q
     Net income$ 37,433 $40,296 $39,846 $34,194 $35,113 
     Income tax expense 11,043  11,995  11,155  9,432  10,988 
     Provision for loan losses (3,342) (5,216) (2,796) (607) 3,261 
     FTE adjustment 298  299  302  318  325 
     Net securities losses (gains) 100  (201) (467) (160) (84)
     Provision for unfunded loan commitments reserve (470) (80) (500) 900  - 
     Nonrecurring expense 2,288  1,880  -  4,100  - 
     PPNR$ 47,350 $48,973 $47,540 $48,177 $49,603 
           
     Average Assets$ 11,747,295 $11,602,757 $11,102,082 $10,939,713 $10,793,494 
           
     Return on Average Assets3 1.26% 1.39% 1.46% 1.24% 1.29%
     PPNR Return on Average Assets3 1.60% 1.69% 1.74% 1.75% 1.83%
           
      9 Months Ended
    September 30,    		   
       2021  2020    
     Net income$ 117,575 $70,194    
     Income tax expense 34,193  19,267    
     Provision for loan losses (11,354) 51,741    
     FTE adjustment 899  983    
     Net securities (gains) losses (568) 548    
     Provision for unfunded loan commitments reserve (1,050) 1,800    
     Nonrecurring expense 4,168  650    
     PPNR$ 143,863 $145,183    
           
     Average Assets$ 11,486,406 $10,371,129    
           
     Return on Average Assets3 1.37% 0.90%   
     PPNR Return on Average Assets3 1.67% 1.87%   
           
     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 Adjustment 2021  2020 
      3rd Q2nd Q1st Q4th Q3rd Q
     Net interest income$ 77,674 $79,178 $79,055 $80,108 $77,943 
     Add: FTE adjustment 298  299  302  318  325 
     Net interest income (FTE)$ 77,972 $79,477 $79,357 $80,426 $78,268 
     Average earning assets$ 10,727,498 $10,631,071 $10,141,088 $9,985,590 $9,826,300 
     Net interest margin (FTE)3 2.88% 3.00% 3.17% 3.20% 3.17%
           
      9 Months Ended
    September 30,    		   
       2021  2020    
     Net interest income$ 235,907 $235,570    
     Add: FTE adjustment 899  983    
     Net interest income (FTE)$ 236,806 $236,553    
     Average earning assets$ 10,502,034 $9,432,833    
     Net interest margin (FTE)3 3.01% 3.35%   
           
     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 
      3rd Q2nd Q1st Q4th Q3rd Q
     Total equity$ 1,241,457 $1,225,056 $1,190,981 $1,187,618 $1,166,111 
     Intangible assets 290,119  290,782  291,464  292,276  293,098 
     Total assets$ 11,994,411 $11,574,947 $11,537,253 $10,932,906 $10,850,212 
     Tangible equity to tangible assets 8.13% 8.28% 8.00% 8.41% 8.27%
           
     Return on average tangible common equity 2021  2020 
      3rd Q2nd Q1st Q4th Q3rd Q
     Net income$ 37,433 $40,296 $39,846 $34,194 $35,113 
     Amortization of intangible assets (net of tax) 497  512  609  617  642 
     Net income, excluding intangibles amortization$ 37,930 $40,808 $40,455 $34,811 $35,755 
           
     Average stockholders' equity$ 1,233,045 $1,203,974 $1,191,280 $1,174,102 $1,155,056 
     Less: average goodwill and other intangibles 290,492  291,133  291,921  292,725  293,572 
     Average tangible common equity$ 942,553 $912,841 $899,359 $881,377 $861,484 
     Return on average tangible common equity3 15.97% 17.93% 18.24% 15.71% 16.51%
           
      9 Months Ended
    September 30,    		   
       2021  2020    
     Net income$ 117,575 $70,194    
     Amortization of intangible assets (net of tax) 1,618  1,930    
     Net income, excluding intangibles amortization$ 119,193 $72,124    
           
     Average stockholders' equity$ 1,209,586 $1,139,871    
     Less: average goodwill and other intangibles 291,177  291,472    
     Average tangible common equity$ 918,409 $848,399    
     Return on average tangible common equity3 17.35% 11.36%   
           
    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.
           


    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

     


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