• NBT Bancorp Inc. Announces Full Year Net Income of $152.0 Million ($3.52 Per Diluted Common Share); Approves Dividend

    Источник: Nasdaq GlobeNewswire / 23 янв 2023 16:15:01   America/New_York

    NORWICH, N.Y., Jan. 23, 2023 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the quarter and year ended December 31, 2022.

    Net income for the year ended December 31, 2022 was $152.0 million, or $3.52 per diluted common share, compared to $154.9 million, or $3.54 per diluted share, in the prior year.

    • Generated positive operating leverage of $21.7 million with total revenues increasing 8.1%, or $38.9 million, while operating expenses were higher by 6.0%, or $17.2 million.
    • Net interest income in 2022 improved in comparison to 2021, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate combined with growth in earning assets, strongly overcoming a $17.6 million ($0.31 per diluted share) year-over-year decrease in income from the Paycheck Protection Program (“PPP”).
    • The Company recorded a provision for loan losses of $17.1 million ($0.31 per diluted share) in 2022, compared to a net benefit of $8.3 million ($0.15 per diluted share) in 2021.
    • Card services income was lower than 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act (“Durbin Amendment”) of approximately $8 million ($0.14 per diluted share).

    Net income for the three months ended December 31, 2022 was $36.1 million, or $0.84 per diluted common share, compared to $37.3 million, or $0.86 per diluted share, in the fourth quarter of 2021.

    • Net interest income in the fourth quarter of 2022 improved in comparison to the fourth quarter of 2021 and the linked third quarter of 2022, primarily due to higher yields on earning assets due to increases in the Federal Funds rate, despite a $7.5 million ($0.13 per diluted share) decrease in income from the PPP.
    • The Company recorded a provision for loan losses of $7.7 million ($0.14 per diluted share) in the fourth quarter of 2022, compared to a provision for loan losses of $3.1 million ($0.06 per diluted share) in the fourth quarter of 2021.
    • Card services income was lower than the fourth quarter of 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment of approximately $4 million ($0.07 per diluted share).
    • In the fourth quarter of 2022, the Company incurred merger expenses of $1.0 million ($0.02 per diluted share) related to the pending acquisition of Salisbury Bancorp, Inc.

    CEO Comments

    “Our operating results for the fourth quarter and full year of 2022 reflect strong execution by our team, including organic loan growth of over 10% and disciplined cost of funds management,” said NBT President and CEO John H. Watt, Jr. “We recognized the benefits of an asset-sensitive balance sheet in 2022 with increases in the targeted Fed Funds rate, and our credit quality continues to be excellent with low levels of net charge-offs and nonperforming assets.”

    “In December, we entered into a definitive agreement to merge with Salisbury Bancorp, Inc. Aligned cultures and complementary markets support the strategic rationale for our partnership with this premier community bank franchise headquartered in Lakeville, CT. We expect the merger to close in the second quarter of 2023, pending required regulatory and shareholder approvals.”

    “We were pleased to reach the milestone of 10 consecutive years of annual dividend increases in 2022,” added Watt. “The payment of a meaningful and growing dividend is an important component of our commitment to consistent and favorable long-term returns for our shareholders.”

    Fourth Quarter Financial Highlights

    Net Income
    • Net income of $36.1 million
    • Diluted earnings per share of $0.84
    • Excluding merger expenses and securities gains (losses), diluted earnings per share of $0.86
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $100.2 million1
    • Net interest margin (“NIM”) on a FTE basis was 3.68%1, up 17 basis points (“bps”) from the prior quarter, due primarily to a 34 bp increase in the yields on earning assets
    • Total cost of deposits of 0.17%, up 8 bps from the prior quarter
    • Total cost of funds of 0.37%, up 19 bps from the prior quarter
    Noninterest Income
    • Noninterest income was $34.3 million, excluding securities gains (losses) and was 25.6% of total revenue
    Pre-Provision Net
    Revenue (“PPNR”)
    • PPNR1 was $55.8 million, consistent with the third quarter of 2022 and was 8.3% higher than the fourth quarter of 2021
    Loans and Credit Quality
    • Period end total loans of $8.15 billion at December 31, 2022, up 10.2% from December 31, 2021, excluding impact of PPP loans
    • Period end loans increased $752.0 million from December 31, 2021, excluding $0.9 million and $101.2 million of PPP loans at December 31, 2022 and December 31, 2021, respectively
    • Net charge-offs to average loans was 0.18%, annualized
    • Nonperforming loans to total loans was 0.26%, down from 0.28% in the prior quarter
    • Allowance for loan losses to total loans of 1.24%
    Capital
    • Announced a $0.30 per share dividend for the first quarter of 2023, which was a $0.02 per share, or 7.1%, increase from the first quarter of 2022
    • Stockholders’ equity was $1.17 billion as of December 31, 2022
    • Tangible book value per share2 was $20.65 at December 31, 2022, modestly lower than the fourth quarter of 2021 and higher than the third quarter of 2022, due primarily to the impact of the changes in accumulated other comprehensive income (“AOCI”)
    • Tangible equity to assets of 7.73%1
    • CET1 ratio of 12.12%; Leverage ratio of 10.32%

    Loans

    • Period end total loans were $8.15 billion at December 31, 2022 and $7.50 billion at December 31, 2021.
    • Excluding PPP loans, period end loans increased $752.0 million from December 31, 2021. Commercial and industrial loans increased $109.8 million to $1.27 billion; commercial real estate loans increased $152.6 million to $2.81 billion; and total consumer loans increased $489.5 million to $4.08 billion.
    • Total PPP loans as of December 31, 2022 were $0.9 million (net of unamortized fees) with over 99% of the original $836 million forgiven or extinguished through the fourth quarter of 2022. The following PPP loan activity occurred during the fourth quarter of 2022:
      • $2.2 million of loans forgiven.
      • $0.1 million of interest and fees recognized into interest income, compared to $0.3 million for the third quarter of 2022 and $7.5 million for the fourth quarter of 2021.
    • Commercial line of credit utilization rate was 21% at December 31, 2022, compared to 23% at September 30, 2022 and 21% at December 31, 2021.

    Deposits

    • Total deposits at December 31, 2022 were $9.50 billion, compared to $10.23 billion at December 31, 2021. The decrease in deposits was primarily concentrated in certain larger more rate-sensitive accounts. The effects of tighter monetary policy, inflation and higher rate alternatives continued to weigh on balances. Even though deposit balances declined from 2021, year-end 2022 deposit balances are still 25.1% higher than the end of 2019.
    • Loan to deposit ratio was 85.8% at December 31, 2022, compared to 73.3% at December 31, 2021.

    Net Interest Income and Net Interest Margin

    • Net interest income for the fourth quarter of 2022 was $99.8 million, which was up $5.3 million, or 5.6%, from the third quarter of 2022 and up $14.6 million, or 17.1%, from the fourth quarter of 2021 primarily due to higher yields on earning assets. PPP income for the fourth quarter of 2022 was $0.1 million, which was $0.2 million lower compared to the prior quarter and down $7.5 million compared to the fourth quarter of 2021.
    • The NIM on a FTE basis for the fourth quarter of 2022 was 3.68%, up 17 bps from the third quarter of 2022 and up 60 bps from the fourth quarter of 2021 due to higher earning asset yields partly offset by higher cost of interest-bearing liabilities.
    • Earning asset yields for the three months ended December 31, 2022 were up 34 bps from the prior quarter and up 79 bps from the same quarter in the prior year. Earning assets grew $73.8 million, or 0.7%, from the prior quarter and declined $216.1 million, or 2.0% compared to the same quarter in the prior year. The following are highlights comparing the fourth quarter of 2022 to the prior quarter:
      • Loan yields increased 38 bps to 4.72% for the quarter.
      • During the fourth quarter, the Company shifted from an excess liquidity position to an overnight borrowing position. The Company had net average short-term interest-earning assets of $185.0 million in the third quarter compared to net average short-term borrowings of $138.0 million in the fourth quarter. The impact of the change net liquidity position was approximately a $3.2 million decrease in net interest income.
    • Total cost of deposits was 0.17% for the fourth quarter of 2022, up 8 bps from the prior quarter and up 9 bps from the same period in the prior year.
    • The cost of total interest-bearing liabilities for the three months ended December 31, 2022 was 0.57%, up 28 bps from the prior quarter and up 33 bps from the fourth quarter of 2021.

    Credit Quality and Allowance for Credit Losses

    • Net charge-offs to total average loans was 18 bps compared to 7 bps in the prior quarter and 22 bps in the fourth quarter of 2021. Recoveries in the fourth quarter of 2022 were $1.7 million compared to $3.4 million in the prior quarter and $2.5 million in the fourth quarter of 2021. The increase in net charge-offs from the prior quarter was driven by higher charge-offs in the other consumer portfolio and lower recoveries in the commercial and industrial portfolio.
    • Nonperforming assets to total assets was 0.18% at December 31, 2022, compared to 0.19% at September 30, 2022 and 0.27% (0.28% excluding PPP loans) at December 31, 2021.
    • Provision expense for the three months ended December 31, 2022 was $7.7 million with net charge-offs of $3.7 million. Provision expense was $3.2 million higher than the third quarter of 2022 and $4.6 million higher than the fourth quarter of 2021. The increase in provision expense from the fourth quarter of 2021 was driven by loan growth and less favorable economic forecasts in 2022 versus an improving economic forecast in the prior year.
    • The allowance for loan losses was $100.8 million, or 1.24% of total loans, at December 31, 2022, compared to 1.22% (1.23% excluding PPP loans and related allowance) of total loans at September 30, 2022 and 1.23% (1.24% excluding PPP loans and related allowance) of total loans at December 31, 2021. The reserve for unfunded loan commitments decreased to $5.1 million at December 31, 2022 compared to the prior quarter at $5.3 million and compared to the fourth quarter of 2021 at $5.1 million.

    Noninterest Income

    • Total noninterest income, excluding securities gains (losses), was $34.3 million for the three months ended December 31, 2022, down $3.0 million from the third quarter and down $6.8 million from the prior year’s fourth quarter.
    • Card services income was lower than the fourth quarter of 2021 driven by the impact from the Company being subject to the statutory price cap provisions of the Durbin Amendment. Card services income was lower than the prior quarter driven primarily by lower levels of card utilization.
    • Retirement plan administration fees were lower than the prior quarter driven by market decline, seasonal revenues recognized in the third quarter and lower activity-based fees. Retirement plan administration fees were lower than the fourth quarter of 2021 driven by lower activity-based fees and market performance. In 2022, the Company recognized approximately $2.5 million of fees related to statutory plan document restatement requirements that generally recur on a six-year cycle.
    • Wealth management fees were lower than the prior quarter due to seasonal tax preparation services in the third quarter and lower than the fourth quarter of 2021 driven primarily by market performance.
    • Other income decreased from the prior quarter and the fourth quarter of 2021 driven by lower commercial loan swap fees.

    Noninterest Expense

    • Total noninterest expense, excluding $1.0 million of merger expense in the fourth quarter of 2022 was up 2.4% from the previous quarter and up 4.6% from the fourth quarter of 2021.
    • Salaries and benefits decreased 2.3% from the prior quarter driven by lower benefit plan costs. The increase from the fourth quarter of 2021 was driven by increased salaries and wages, including merit pay increases and higher levels of incentive compensation accruals.
    • Technology and data services expenses were consistent with the prior quarter and increased from the fourth quarter of 2021 due to continued investment in digital platform solutions.
    • Professional fees and outside services expense were higher than the prior quarter due to seasonal expenses and timing of external services for several tactical and strategic initiatives.

    Income Taxes

    • The effective tax rate was 22.6% for the fourth quarter of 2022, compared to 22.8% for the third quarter of 2022 and 22.4% for the fourth quarter of 2021.

    Capital

    • Capital ratios remain strong with tangible common equity to tangible assets1 at 7.73%. Tangible book value per share2 was $20.65 at December 31, 2022, $20.25 at September 30, 2022 and $22.26 at December 31, 2021.
    • Stockholders’ equity decreased $76.9 million from December 31, 2021 driven by the $166.7 million decrease in AOCI due primarily to the change in the market value of securities available for sale, dividends declared of $49.8 million and the repurchase of common stock of $14.7 million, partly offset by net income generation of $152.0 million.
    • December 31, 2022, CET1 capital ratio of 12.12%, leverage ratio of 10.32 % and total risk-based capital ratio of 15.38%.
    • The Company purchased 400,000 shares of its common stock in the first half of 2022 at an average price of $36.78 per share under its previously announced share repurchase program. There were 1,600,000 shares available for repurchase under this plan which is set to expire on December 31, 2023.

    Dividend

    • The Board of Directors approved a first-quarter cash dividend of $0.30 per share at a meeting held today, an increase of $0.02, or 7.1%, from the amount paid in the first quarter of 2022. 2022 was the tenth consecutive year of annual dividend increases by the Company. The dividend will be paid on March 15, 2023 to stockholders of record as of March 1, 2023.

    Salisbury Bancorp, Inc. Merger

    • On December 5, 2022, NBT announced that it had entered into an agreement to acquire Salisbury Bancorp, Inc., a 14 branch community bank franchise headquartered in Lakeville, CT, in an all stock transaction. Salisbury Bancorp, Inc. had assets of $1.51 billion, deposits of $1.33 billion, and net loans of $1.18 billion as of September 30, 2022. The merger is expected to close in the second quarter of 2023 subject to customary closing conditions, including approval by the shareholders of Salisbury Bancorp, Inc. and required regulatory approvals.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, January 24, 2023, to review fourth quarter 2022 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 $11.74 billion at December 31, 2022. 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 national benefits administration 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 press 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, including international military conflicts, 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 COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

    The Company cautions readers not to 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)    
          
     2022
    2021
     4th Q3rd Q2nd Q1st Q4th Q
    Profitability:     
    Diluted earnings per share$0.84 $0.90 $0.88 $0.90 $0.86 
    Weighted average diluted common shares outstanding 43,144,666  43,110,932  43,092,851  43,385,451  43,574,539 
    Return on average assets3 1.23% 1.33% 1.28% 1.32% 1.23%
    Return on average equity3 12.30% 12.87% 12.73% 12.78% 11.89%
    Return on average tangible common equity1 3 16.54% 17.12% 17.00% 16.87% 15.70%
    Net interest margin1 3 3.68% 3.51% 3.21% 2.95% 3.08%
          
     12 Months Ended December 31,
         
     2022
    2021
       
    Profitability:     
    Diluted earnings per share$3.52 $3.54    
    Weighted average diluted common shares outstanding 43,181,312  43,718,804    
    Return on average assets 1.29% 1.33%   
    Return on average equity 12.67% 12.71%   
    Return on average tangible common equity1 16.89% 16.92%   
    Net interest margin1 3.34% 3.03%   
          
     2022
    2021
     4th Q3rd Q2nd Q1st Q4th Q
    Balance sheet data:     
    Short-term interest-bearing accounts$30,862 $97,303 $328,593 $913,315 $1,111,296 
    Securities available for sale 1,527,225  1,556,501  1,619,356  1,662,697  1,687,361 
    Securities held to maturity 919,517  929,541  936,512  895,005  733,210 
    Net loans 8,049,347  7,807,984  7,684,081  7,559,826  7,406,459 
    Total assets 11,739,296  11,640,742  11,720,459  12,147,833  12,012,111 
    Total deposits 9,495,933  9,918,751  10,028,708  10,461,623  10,234,469 
    Total borrowings 787,950  277,889  265,796  278,788  311,476 
    Total liabilities 10,565,742  10,484,196  10,531,903  10,945,583  10,761,658 
    Stockholders' equity 1,173,554  1,156,546  1,188,556  1,202,250  1,250,453 
          
    Capital:     
    Equity to assets 10.00% 9.94% 10.14% 9.90% 10.41%
    Tangible equity ratio1 7.73% 7.64% 7.87% 7.70% 8.20%
    Book value per share$27.38 $27.00 $27.75 $27.96 $28.97 
    Tangible book value per share2$20.65 $20.25 $20.99 $21.25 $22.26 
    Leverage ratio 10.32% 10.21% 9.77% 9.52% 9.41%
    Common equity tier 1 capital ratio 12.12% 12.17% 12.14% 12.23% 12.25%
    Tier 1 capital ratio 13.19% 13.27% 13.27% 13.39% 13.43%
    Total risk-based capital ratio 15.38% 15.50% 15.50% 15.64% 15.73%
    Common stock price (end of period)$43.42 $37.95 $37.59 $36.13 $38.52 
          


    NBT Bancorp Inc. and Subsidiaries     
    Asset Quality and Consolidated Loan Balances     
    (unaudited, dollars in thousands)     
          
     2022
    2021
     4th Q3rd Q2nd Q1st Q4th Q
    Asset quality:     
    Nonaccrual loans$17,233 $19,098 $23,673 $25,812 $30,285 
    90 days past due and still accruing 3,823  2,732  2,096  1,944  2,458 
    Total nonperforming loans 21,056  21,830  25,769  27,756  32,743 
    Other real estate owned 105  -  -  -  167 
    Total nonperforming assets 21,161  21,830  25,769  27,756  32,910 
    Allowance for loan losses 100,800  96,800  93,600  90,000  92,000 
          
    Asset quality ratios (total):     
    Allowance for loan losses to total loans 1.24% 1.22% 1.20% 1.18% 1.23%
    Total nonperforming loans to total loans 0.26% 0.28% 0.33% 0.36% 0.44%
    Total nonperforming assets to total assets 0.18% 0.19% 0.22% 0.23% 0.27%
    Allowance for loan losses to total nonperforming loans 478.72% 443.43% 363.23% 324.25% 280.98%
    Past due loans to total loans4 0.33% 0.30% 0.40% 0.24% 0.29%
    Net charge-offs to average loans3 0.18% 0.07% 0.04% 0.14% 0.22%
          
    Asset quality ratios (excluding paycheck protection program):    
    Allowance for loan losses to total loans 1.24% 1.23% 1.21% 1.18% 1.24%
    Total nonperforming loans to total loans 0.26% 0.28% 0.33% 0.37% 0.44%
    Total nonperforming assets to total assets 0.18% 0.19% 0.22% 0.23% 0.28%
    Allowance for loan losses to total nonperforming loans 478.72% 443.43% 363.27% 324.24% 280.96%
    Past due loans to total loans4 0.33% 0.29% 0.40% 0.25% 0.29%
    Net charge-offs to average loans3 0.18% 0.07% 0.04% 0.14% 0.22%
          
     2022
    2021
    Net charge-offs by line of business:4th Q3rd Q2nd Q1st Q4th Q
    Commercial & industrial$(45)$(1,045)$(298)$139 $1,929 
    Commercial real estate 8  324  (246) 346  372 
    Residential real estate and home equity (79) (56) (210) 163  51 
    Indirect auto 445  222  163  135  (58)
    Residential solar 596  43  153  132  170 
    Other consumer 2,752  1,796  1,228  1,681  1,633 
    Total net charge-offs$3,677 $1,284 $790 $2,596 $4,097 
          
     2022
    2021
     4th Q3rd Q2nd Q1st Q4th Q
    Allowance for loan losses as a percentage of loans by segment:    
    Commercial & industrial 0.82% 0.80% 0.75% 0.66% 0.78%
    Commercial real estate 0.91% 0.88% 0.89% 0.79% 0.78%
    Paycheck protection program 0.01% 0.01% 0.01% 0.01% 0.01%
    Residential real estate 0.72% 0.74% 0.79% 0.88% 0.92%
    Auto 0.81% 0.78% 0.79% 0.76% 0.79%
    Residential solar 3.21% 3.08% 3.00% 2.97% 3.04%
    Other consumer 6.27% 6.67% 6.19% 6.24% 6.66%
    Total 1.24% 1.22% 1.20% 1.18% 1.23%
    Total excluding PPP loans 1.24% 1.23% 1.21% 1.18% 1.24%
          
     2022
    2021
    Loans by line of business:4th Q3rd Q2nd Q1st Q4th Q
    Commercial & industrial$1,265,082 $1,258,871 $1,298,072 $1,214,834 $1,155,240 
    Commercial real estate 2,807,941  2,724,728  2,670,633  2,709,611  2,655,367 
    Paycheck protection program 949  3,328  17,286  50,977  101,222 
    Residential real estate 1,649,870  1,626,528  1,606,188  1,584,551  1,571,232 
    Indirect auto 989,587  952,757  936,516  890,643  859,454 
    Residential solar 856,798  728,898  599,565  514,526  440,016 
    Home equity 314,124  313,557  313,395  319,180  330,357 
    Other consumer 265,796  296,117  336,026  365,504  385,571 
    Total loans$8,150,147 $7,904,784 $7,777,681 $7,649,826 $7,498,459 
          
    PPP income recognized$71 $320 $1,301 $1,976 $7,545 
    PPP unamortized fees$45 $108 $414 $1,629 $3,420 
          


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets
    (unaudited, dollars in thousands)
       
     December 31,December 31,
    Assets2022
    2021
    Cash and due from banks$166,488 $157,775 
    Short-term interest-bearing accounts 30,862  1,111,296 
    Equity securities, at fair value 30,784  33,550 
    Securities available for sale, at fair value 1,527,225  1,687,361 
    Securities held to maturity (fair value $812,647 and $735,260, respectively) 919,517  733,210 
    Federal Reserve and Federal Home Loan Bank stock 44,713  25,098 
    Loans held for sale 562  830 
    Loans 8,150,147  7,498,459 
    Less allowance for loan losses 100,800  92,000 
    Net loans$8,049,347 $7,406,459 
    Premises and equipment, net 69,047  72,093 
    Goodwill 281,204  280,541 
    Intangible assets, net 7,341  8,927 
    Bank owned life insurance 232,409  228,238 
    Other assets 379,797  266,733 
    Total assets$11,739,296 $12,012,111 
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$3,617,324 $3,689,556 
    Savings, NOW and money market 5,444,837  6,043,441 
    Time 433,772  501,472 
    Total deposits$9,495,933 $10,234,469 
    Short-term borrowings 585,012  97,795 
    Long-term debt 4,815  13,995 
    Subordinated debt, net 96,927  98,490 
    Junior subordinated debt 101,196  101,196 
    Other liabilities 281,859  215,713 
    Total liabilities$10,565,742 $10,761,658 
       
    Total stockholders' equity$1,173,554 $1,250,453 
       
    Total liabilities and stockholders' equity$11,739,296 $12,012,111 
       


    NBT Bancorp Inc. and Subsidiaries
    Consolidated Statements of Income
    (unaudited, dollars in thousands except per share data)
         
     Three Months EndedTwelve Months Ended
     December 31,December 31,
     2022202120222021
    Interest, fee and dividend income    
    Interest and fees on loans$95,620 $79,470 $332,768 $302,175 
    Securities available for sale 7,831  6,101  29,653  23,305 
    Securities held to maturity 5,050  3,097  17,582  12,551 
    Other 671  639  4,067  1,845 
    Total interest, fee and dividend income$109,172 $89,307 $384,070 $339,876 
    Interest expense    
    Deposits$4,092 $2,132 $9,923 $10,714 
    Short-term borrowings 2,510  28  2,623  158 
    Long-term debt 21  88  161  389 
    Subordinated debt 1,346  1,360  5,424  5,437 
    Junior subordinated debt 1,424  518  3,749  2,090 
    Total interest expense$9,393 $4,126 $21,880 $18,788 
    Net interest income$99,779 $85,181 $362,190 $321,088 
    Provision for loan losses 7,677  3,097  17,147  (8,257)
    Net interest income after provision for loan losses$92,102 $82,084 $345,043 $329,345 
    Noninterest income    
    Service charges on deposit accounts$3,598 $3,804 $14,630 $13,348 
    Card services income 4,958  8,847  29,058  34,682 
    Retirement plan administration fees 10,661  11,816  48,112  42,188 
    Wealth management 8,017  8,619  33,311  33,718 
    Insurance services 3,438  3,394  14,696  14,083 
    Bank owned life insurance income 1,419  1,629  6,044  6,217 
    Net securities (losses) gains (217) (2) (1,131) 566 
    Other 2,217  3,004  10,858  12,992 
    Total noninterest income$34,091 $41,111 $155,578 $157,794 
    Noninterest expense    
    Salaries and employee benefits$47,235 $44,118 $187,830 $172,580 
    Technology and data services 9,124  8,563  35,712  34,717 
    Occupancy 6,521  6,635  26,282  26,048 
    Professional fees and outside services 4,811  4,903  16,810  16,306 
    Office supplies and postage 1,699  1,528  6,140  6,006 
    FDIC expense 798  798  3,197  3,041 
    Advertising 879  1,019  2,822  2,521 
    Amortization of intangible assets 539  651  2,264  2,808 
    Loan collection and other real estate owned, net 957  956  2,647  2,915 
    Merger expenses 967  -  967  - 
    Other 5,979  5,934  19,794  20,339 
    Total noninterest expense$79,509 $75,105 $304,465 $287,281 
    Income before income tax expense$46,684 $48,090 $196,156 $199,858 
    Income tax expense 10,563  10,780  44,161  44,973 
    Net income$36,121 $37,310 $151,995 $154,885 
    Earnings Per Share    
    Basic$0.84 $0.86 $3.54 $3.57 
    Diluted$0.84 $0.86 $3.52 $3.54 
         


    NBT Bancorp Inc. and Subsidiaries     
    Quarterly Consolidated Statements of Income    
    (unaudited, dollars in thousands except per share data)    
          
     2022
    2021
     4th Q3rd Q2nd Q1st Q4th Q
    Interest, fee and dividend income     
    Interest and fees on loans$95,620 $85,266 $78,539 $73,343 $79,470 
    Securities available for sale 7,831  7,665  7,317  6,840  6,101 
    Securities held to maturity 5,050  4,854  4,185  3,493  3,097 
    Other 671  1,429  1,442  525  639 
    Total interest, fee and dividend income$109,172 $99,214 $91,483 $84,201 $89,307 
    Interest expense     
    Deposits$4,092 $2,233 $1,756 $1,842 $2,132 
    Short-term borrowings 2,510  84  13  16  28 
    Long-term debt 21  20  33  87  88 
    Subordinated debt 1,346  1,360  1,359  1,359  1,360 
    Junior subordinated debt 1,424  1,039  737  549  518 
    Total interest expense$9,393 $4,736 $3,898 $3,853 $4,126 
    Net interest income$99,779 $94,478 $87,585 $80,348 $85,181 
    Provision for loan losses 7,677  4,484  4,390  596  3,097 
    Net interest income after provision for loan losses$92,102 $89,994 $83,195 $79,752 $82,084 
    Noninterest income     
    Service charges on deposit accounts$3,598 $3,581 $3,763 $3,688 $3,804 
    Card services income 4,958  5,654  9,751  8,695  8,847 
    Retirement plan administration fees 10,661  11,496  12,676  13,279  11,816 
    Wealth management 8,017  8,402  8,252  8,640  8,619 
    Insurance services 3,438  3,892  3,578  3,788  3,394 
    Bank owned life insurance income 1,419  1,560  1,411  1,654  1,629 
    Net securities (losses) (217) (148) (587) (179) (2)
    Other 2,217  2,735  2,812  3,094  3,004 
    Total noninterest income$34,091 $37,172 $41,656 $42,659 $41,111 
    Noninterest expense     
    Salaries and employee benefits$47,235 $48,371 $46,716 $45,508 $44,118 
    Technology and data services 9,124  9,096  8,945  8,547  8,563 
    Occupancy 6,521  6,481  6,487  6,793  6,635 
    Professional fees and outside services 4,811  3,817  3,906  4,276  4,903 
    Office supplies and postage 1,699  1,469  1,548  1,424  1,528 
    FDIC expense 798  787  810  802  798 
    Advertising 879  559  730  654  1,019 
    Amortization of intangible assets 539  544  545  636  651 
    Loan collection and other real estate owned, net 957  549  757  384  956 
    Merger expenses 967  -  -  -  - 
    Other 5,979  5,021  5,675  3,119  5,934 
    Total noninterest expense$79,509 $76,694 $76,119 $72,143 $75,105 
    Income before income tax expense$46,684 $50,472 $48,732 $50,268 $48,090 
    Income tax expense 10,563  11,499  10,957  11,142  10,780 
    Net income$36,121 $38,973 $37,775 $39,126 $37,310 
    Earnings Per Share     
    Basic$0.84 $0.91 $0.88 $0.91 $0.86 
    Diluted$0.84 $0.90 $0.88 $0.90 $0.86 
          


    NBT Bancorp Inc. and Subsidiaries           
    Average Quarterly Balance Sheets           
    (unaudited, dollars in thousands)           
                
      Average
    Balance
    Yield /
    Rates
    Average
    Balance
    Yield /
    Rates
    Average
    Balance
    Yield /
    Rates
    Average
    Balance
    Yield /
    Rates
    Average
    Balance
    Yield /
    Rates
      Q4 - 2022Q3 - 2022Q2 - 2022Q1 - 2022Q4 - 2021
    Assets           
    Short-term interest-bearing accounts $39,5733.31%$191,4632.51%$553,5480.82%$990,3190.17%$1,145,7940.16%
    Securities taxable1  2,480,9591.88% 2,491,3151.83% 2,439,9601.74% 2,284,5781.67% 2,081,7961.57%
    Securities tax-exempt1 5  208,2382.68% 211,3062.47% 256,7991.83% 258,5131.84% 257,3201.85%
    FRB and FHLB stock  32,9034.11% 25,1823.47% 24,9835.03% 25,0261.98% 25,1492.74%
    Loans1 6  8,039,4424.72% 7,808,0254.34% 7,707,7304.09% 7,530,6743.95% 7,507,1654.20%
    Total interest-earning assets $10,801,1154.02%$10,727,2913.68%$10,983,0203.35%$11,089,1103.09%$11,017,2243.23%
    Other assets  855,410  887,378  883,498  947,578  982,136 
    Total assets $11,656,525  $11,614,669 $11,866,518  $12,036,688  $11,999,360  
    Liabilities and stockholders' equity           
    Money market deposit accounts $2,169,1920.39%$2,332,3410.15%$2,577,3670.14%$2,720,3380.15%$2,678,4770.16%
    NOW deposit accounts  1,604,0960.33% 1,548,1150.21% 1,580,1320.07% 1,583,0910.05% 1,551,8460.05%
    Savings deposits  1,823,0560.03% 1,854,1220.03% 1,845,1280.03% 1,794,5490.03% 1,725,0040.05%
    Time deposits  432,1100.41% 455,1680.35% 478,5310.37% 494,6320.40% 537,8750.46%
    Total interest-bearing deposits $6,028,4540.27%$6,189,7460.14%$6,481,1580.11%$6,592,6100.11%$6,493,2020.13%
    Federal funds purchased  56,5764.03% 1,5223.39% --  --  65- 
    Repurchase agreements  76,3340.11% 69,0480.10% 60,0610.09% 72,7680.09% 97,3890.11%
    Short-term borrowings  177,5334.28% 6,4403.33% --  --  1- 
    Long-term debt  3,8172.18% 3,3312.38% 5,3362.48% 13,9792.52% 14,0042.49%
    Subordinated debt, net  97,8395.46% 98,7485.46% 98,6425.53% 98,5315.59% 98,4225.48%
    Junior subordinated debt  101,1965.58% 101,1964.07% 101,1962.92% 101,1962.20% 101,1962.03%
    Total interest-bearing liabilities $6,541,7490.57%$6,470,0310.29%$6,746,3930.23%$6,879,0840.23%$6,804,2790.24%
    Demand deposits  3,658,965  3,708,131  3,711,049  3,710,124  3,719,070 
    Other liabilities  290,895  234,851  218,491  206,292  231,260 
    Stockholders' equity  1,164,916  1,201,656  1,190,585  1,241,188  1,244,751 
    Total liabilities and stockholders' equity $11,656,525 $11,614,669 $11,866,518  $12,036,688  $11,999,360  
    Interest rate spread  3.45% 3.39% 3.12% 2.86% 2.99%
    Net interest margin (FTE)1  3.68% 3.51% 3.21% 2.95% 3.08%
                


    NBT Bancorp Inc. and Subsidiaries
    Average Year-to-Date Balance Sheets
    (unaudited, dollars in thousands)
            
      Average Yield/Average Yield/
      BalanceInterestRatesBalanceInterestRates
    Twelve Months Ended December 31, 2022
    2021
    Assets       
    Short-term interest-bearing accounts $440,429 $3,072 0.70%$932,086 $1,229 0.13%
    Securities taxable1  2,424,925  43,229 1.78% 1,910,641  31,962 1.67%
    Securities tax-exempt1 5  233,515  5,070 2.17% 220,759  4,929 2.23%
    FRB and FHLB stock  27,040  995 3.68% 25,255  616 2.44%
    Loans1 6  7,772,962  333,008 4.28% 7,543,149  302,331 4.01%
    Total interest-earning assets $10,898,871 $385,374 3.54%$10,631,890 $341,067 3.21%
    Other assets  893,197    983,809   
    Total assets $11,792,068   $11,615,699   
    Liabilities and stockholders' equity       
    Money market deposit accounts $2,447,978 $4,955 0.20%$2,587,748 $5,117 0.20%
    NOW deposit accounts  1,578,831  2,600 0.16% 1,452,560  738 0.05%
    Savings deposits  1,829,360  592 0.03% 1,656,893  829 0.05%
    Time deposits  464,912  1,776 0.38% 577,150  4,030 0.70%
    Total interest-bearing deposits $6,321,081 $9,923 0.16%$6,274,351 $10,714 0.17%
    Federal funds purchased  14,644  588 4.02% 17  - - 
    Repurchase agreements  69,561  67 0.10% 100,519  132 0.13%
    Short-term borrowings  46,371  1,968 4.24% 1,302  26 2.00%
    Long-term debt  6,579  161 2.45% 15,479  389 2.51%
    Subordinated debt, net  98,439  5,424 5.51% 98,259  5,437 5.53%
    Junior subordinated debt  101,196  3,749 3.70% 101,196  2,090 2.07%
    Total interest-bearing liabilities $6,657,871 $21,880 0.33%$6,591,123 $18,788 0.29%
    Demand deposits  3,696,957    3,565,693   
    Other liabilities  237,857    240,434   
    Stockholders' equity  1,199,383    1,218,449   
    Total liabilities and stockholders' equity $11,792,068   $11,615,699   
    Net interest income (FTE)1  $363,494   $322,279  
    Interest rate spread   3.21%  2.92%
    Net interest margin (FTE)1   3.34%  3.03%
    Taxable equivalent adjustment  $1,304   $1,191  
    Net interest income  $362,190   $321,088  
            


    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")2022
    2021
      4th Q3rd Q2nd Q1st Q4th Q
     Net income$36,121 $38,973 $37,775 $39,126 $37,310 
     Income tax expense 10,563  11,499  10,957  11,142  10,780 
     Provision for loan losses 7,677  4,484  4,390  596  3,097 
     FTE adjustment 392  337  290  285  292 
     Net securities losses 217  148  587  179  2 
     Provision for unfunded loan commitments reserve (185) 225  240  (260) (250)
     Merger expense 967  -  -  -  - 
     Nonrecurring expense -  -  -  (172) 250 
     PPNR$55,752 $55,666 $54,239 $50,896 $51,481 
           
     Average assets$11,656,525 $11,614,669 $11,866,518 $12,036,688 $11,999,360 
           
     Return on average assets3 1.23% 1.33% 1.28% 1.32% 1.23%
     PPNR return on average assets3 1.90% 1.90% 1.83% 1.71% 1.70%
           
      12 Months Ended December 31,   
      2022
    2021
       
     Net income$151,995 $154,885    
     Income tax expense 44,161  44,973    
     Provision for loan losses 17,147  (8,257)   
     FTE adjustment 1,304  1,191    
     Net securities losses (gains) 1,131  (566)   
     Provision for unfunded loan commitments reserve 20  (1,300)   
     Merger expense 967  -    
     Nonrecurring expense (172) 4,418    
     PPNR$216,553 $195,344    
           
     Average Assets$11,792,068 $11,615,699    
           
     Return on average assets 1.29% 1.33%   
     PPNR return on average assets 1.84% 1.68%   
           
     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 adjustment2022
    2021
      4th Q3rd Q2nd Q1st Q4th Q
     Net interest income$99,779 $94,478 $87,585 $80,348 $85,181 
     Add: FTE adjustment 392  337  290  285  292 
     Net interest income (FTE)$100,171 $94,815 $87,875 $80,633 $85,473 
     Average earning assets$10,801,115 $10,727,291 $10,983,020 $11,089,110 $11,017,224 
     Net interest margin (FTE)3 3.68% 3.51% 3.21% 2.95% 3.08%
           
      12 Months Ended December 31,   
      2022
    2021
       
     Net interest income$362,190 $321,088    
     Add: FTE adjustment 1,304  1,191    
     Net interest income (FTE)$363,494 $322,279    
     Average earning assets$10,898,871 $10,631,890    
     Net interest margin (FTE) 3.34% 3.03%   
           
     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 assets2022
    2021
      4th Q3rd Q2nd Q1st Q4th Q
     Total equity$1,173,554 $1,156,546 $1,188,556 $1,202,250 $1,250,453 
     Intangible assets 288,545  289,083  289,259  288,832  289,468 
     Total assets$11,739,296 $11,640,742 $11,720,459 $12,147,833 $12,012,111 
     Tangible equity to tangible assets 7.73% 7.64% 7.87% 7.70% 8.20%
           
     Return on average tangible common equity2022
    2021
      4th Q3rd Q2nd Q1st Q4th Q
     Net income$36,121 $38,973 $37,775 $39,126 $37,310 
     Amortization of intangible assets (net of tax) 404  408  409  477  488 
     Net income, excluding intangibles amortization$36,525 $39,381 $38,184 $39,603 $37,798 
           
     Average stockholders' equity$1,164,916 $1,201,656 $1,190,585 $1,241,188 $1,244,751 
     Less: average goodwill and other intangibles 288,856  289,296  289,584  289,218  289,834 
     Average tangible common equity$876,060 $912,360 $901,001 $951,970 $954,917 
     Return on average tangible common equity3 16.54% 17.12% 17.00% 16.87% 15.70%
           
      12 Months Ended December 31,   
      2022
    2021
       
     Net income$151,995 $154,885    
     Amortization of intangible assets (net of tax) 1,698  2,106    
     Net income, excluding intangibles amortization$153,693 $156,991    
           
     Average stockholders' equity$1,199,383 $1,218,449    
     Less: average goodwill and other intangibles 289,238  290,838    
     Average tangible common equity$910,145 $927,611    
     Return on average tangible common equity 16.89% 16.92%   
           
    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.

Опубликовать