NBT Bancorp Inc. Announces Net Income of $154.9 Million ($3.54 per Diluted Common Share); Approves Dividend

Wednesday, 26. January 2022 22:20

NORWICH, N.Y., Jan. 26, 2022 (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, 2021.

Net income for the year ended December 31, 2021 was $154.9 million, up 48.4% from $104.4 million for the prior year primarily due to changes in the estimated impact of the COVID-19 pandemic on expected credit losses. Diluted earnings per share for the year ended December 31, 2021 was $3.54, as compared with $2.37 for the prior year, an increase of 49.4%.

Pre-provision net revenue (“PPNR”)1 for the year ended December 31, 2021 was $195.3 million compared to $193.4 million in the prior year. The increase in PPNR from the prior year reflected higher net interest income and higher noninterest income partly offset by higher noninterest expense. Income from Paycheck Protection Program (“PPP”) loans increased $7.1 million from the prior year.

Net income for the three months ended December 31, 2021 was $37.3 million, or $0.86 per diluted common share. Net income increased $3.1 million from the fourth quarter of 2020, primarily due to higher net interest income and higher noninterest income, partly offset by higher provision for loan losses. The fourth quarter 2021 provision for loan losses was $3.1 million compared to the fourth quarter 2020 provision release of $0.6 million. Quarterly net income was consistent with the previous quarter and reflected improved revenue generation offset by a higher provision for loan losses and higher noninterest expense.

PPNR1 for the fourth quarter of 2021 was $51.5 million compared to $47.4 million in the previous quarter and $48.2 million in the fourth quarter of 2020. Income from PPP loans increased $4.7 million and $1.9 million from the previous quarter and the fourth quarter of 2020, respectively.

CEO Comments

“Our fourth quarter and full-year results for 2021 reflect the hard work of our team, and our strong finish is the culmination of a record year,” said NBT President and CEO John H. Watt, Jr. “Our fee-based businesses achieved new levels of success year over year, and we saw digital adoption continue to soar across our consumer and commercial platforms, including a 64% increase in consumer digital adoption. NBT has a strong and growing capital base, which provides us with optionality that will enable our dedicated and talented team to be successful in 2022. I am excited to welcome Heidi Hoeller as our newest director. With over 25 years of experience in public accounting and financial services, we look forward to adding her valuable perspective to our strategic thinking.”

Fourth Quarter Financial Highlights

Net Income
  • Net income of $37.3 million
  • Diluted earnings per share of $0.86
Net Interest Income / NIM
  • Net interest income on a fully taxable equivalent basis was $85.5 million1
  • Net interest margin (“NIM”) on a fully taxable equivalent basis was 3.08%1, up 20 basis points (“bps”) from the prior quarter
  • Total cost of deposits of 0.08%
PPNR
  • PPNR1 was $51.5 million compared to $47.4 million in the third quarter of 2021 and $48.2 million in the fourth quarter of 2020
Loans and Credit Quality
  • Period end total loans were $7.5 billion at December 31, 2021
  • Excluding $101 million and $431 million of PPP loans at December 31, 2021 and December 31, 2020, respectively, period end loans increased $329 million or 5% from December 31, 2020
  • Allowance for loan losses to total loans of 1.23% (1.24% excluding PPP loans), was consistent with the third quarter 2021 (down 4 bps excluding PPP loans)
  • Net charge-offs to average loans were 0.22%, annualized (0.22% excluding PPP loans)
  • Nonperforming loans to total loans were 0.44% (0.44% excluding PPP loans), down from 0.51% (0.53% excluding PPP loans) in the prior quarter
Capital
  • Tangible book value per share2 grew 1% for the quarter and 8% from prior year to $22.26 at December 31, 2021
  • Tangible equity to assets of 8.20%1
  • CET1 ratio of 12.25%; Leverage ratio of 9.41%

Loans

  • Period end total loans were $7.5 billion at December 31, 2021 and December 31, 2020.
  • Excluding PPP loans, period end loans increased $329 million from December 31, 2020. Commercial and industrial loans increased $37.9 million to $1.5 billion; commercial real estate loans increased $124.7 million to $2.3 billion; and total consumer loans increased $166.6 million to $3.6 billion.
  • Total PPP loans as of December 31, 2021 were $101 million (net of unamortized fees). The following PPP loan activity occurred during the fourth quarter of 2021:
    • $182.6 million of loans forgiven
    • $7.5 million of interest and fees recognized into interest income, compared to $2.9 million for the third quarter of 2021
  • Commercial line of credit utilization rate was 21% at December 31, 2021 compared to 21% at September 30, 2021 and 22% at December 31, 2020.

Deposits

  • Average total deposits in the fourth quarter of 2021 were $10.2 billion, compared to $10.0 billion in the third quarter of 2021, driven by increases in checking and money market deposit accounts.
  • Loan to deposit ratio was 73.3% at December 31, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

  • Net interest income for the fourth quarter of 2021 was $85.2 million, which was up $7.5 million or 9.7% from the third quarter of 2021 and up $5.1 million or 6.3% from the fourth quarter of 2020. PPP income of $7.5 million was $4.7 million higher in the fourth quarter of 2021 compared to the prior quarter.
  • The NIM on a fully taxable equivalent (“FTE”) basis for the fourth quarter of 2021 was 3.08%, up 20 bps from the third quarter of 2021 and down 12 bps from the fourth quarter of 2020. Excluding the impact of PPP interest and fees and excess liquidity from each quarter, the NIM increased 5 bps from the prior quarter primarily due to a 3 bp increase in earning asset yields and a 2 bp decline in the cost of interest-bearing liabilities. The net impact of income from PPP loans and excess liquidity negatively impacted the NIM by 11 bps in the fourth quarter of 2021 compared to a negative 26 bps impact in the third quarter of 2021.
  • Earning asset yields for the three months ended December 31, 2021 were up 18 bps from the prior quarter and down 23 bps from the same quarter in the prior year. Earning assets grew $289.7 million or 2.7% from the prior quarter and grew $1.0 billion or 10.3% from the same quarter in the prior year. The following are highlights comparing the fourth quarter of 2021 to the prior quarter:
    • Excess liquidity resulted in a $131.7 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 $168.7 million while yields declined 7 bps.
    • Loan yields increased 36 bps to 4.20% for the quarter. Excluding PPP loans, yields increased 3 bps from the prior quarter.
  • Total cost of deposits was 0.08% for the fourth 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 December 31, 2021 was 0.24%, down 3 bps compared to the prior quarter of 0.27% and down 16 bps from the fourth quarter of 2020 of 0.40%.

Credit Quality and Allowance for Credit Losses

  • Net charge-offs to total average loans of 22 bps compared to 11 bps (12 bps excluding PPP loans) in the prior quarter and 21 bps (22 bps excluding PPP loans) in the fourth quarter of 2020.
  • Nonperforming assets to total assets was 0.27% (0.28% excluding PPP loans) compared to 0.33% (0.34% excluding PPP loans) at September 30, 2021 and 0.45% (0.47% excluding PPP loans) at December 31, 2020.
  • Provision expense for the three months ended December 31, 2021 was $3.1 million with net charge-offs of $4.1 million. Provision expense was $6.4 million higher than the third quarter of 2021 and $3.7 million higher than fourth quarter of 2020. The increase in provision expense from the prior quarter and the fourth quarter of 2020 was driven by changes in the economic forecast, loan growth and the resultant required level of allowance for loan losses.
  • The allowance for loan losses was $92.0 million or 1.23% (1.24% excluding PPP loans and related allowance) of total loans at December 31, 2021, compared to 1.23% (1.28% excluding PPP loans and related allowance) of total loans at September 30, 2021 and 1.47% (1.56% excluding PPP loans and related allowance) of total loans 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 partly offset by the increase in loan balances.
  • The reserve for unfunded loan commitments decreased to $5.1 million at December 31, 2021 compared to the prior quarter at $5.3 million.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $41.1 million for the three months ended December 31, 2021, up $0.7 million from the prior quarter and up $3.2 million from the prior year quarter.
  • Service charges on deposit accounts were higher than the prior quarter and the fourth quarter of 2020 but still below pre-pandemic levels.
  • ATM and debit card fees were comparable to the prior quarter and higher than the fourth quarter of 2020 due to increased volume and modestly higher per transaction rates.
  • Retirement plan administration fees were higher than the prior quarter and higher than the fourth quarter of 2020 driven by market performance and organic growth in relationships.
  • Wealth management fees were comparable to the prior quarter and higher than the fourth quarter of 2020 aided by market performance and additional new customers.
  • Other noninterest income decreased from the prior quarter and the fourth quarter of 2020 due principally to lower swap fee income.

Noninterest Expense

  • Total noninterest expense for the fourth quarter of 2021 was up 3.1% from the previous quarter and comparable to the fourth quarter of 2020.
  • Salaries and benefits were consistent with the prior quarter and up $3.1 million from the fourth quarter of 2020 due to increased salaries and wages and higher levels of incentive compensation.
  • Occupancy expense increased from the prior quarter and the fourth quarter of 2020 driven by seasonally higher repair and maintenance costs.
  • Professional fees and outside services expense were higher than the prior quarter and the fourth quarter of 2020 due to higher costs associated with several digital and other technology-related initiatives.
  • Advertising and marketing expenses were higher than the prior quarter and the fourth quarter of 2020 due to timing of refreshed collateral and messaging materials.
  • Other expenses decreased from the prior quarter and the fourth quarter of 2020. The decrease from the prior year was primarily due to a $4.1 million expense in 2020 for branch optimization charges.

Income Taxes

  • The effective tax rate was 22.4% for the fourth quarter of 2021 compared to 22.8% for the third quarter of 2021 and 21.6% for the fourth quarter of 2020. The higher effective tax rate compared to the fourth quarter of 2020 was due to the change in the level of taxable income to bring the full year effective tax rate to 22.5%.

Capital

  • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.20%. Tangible book value per share2 grew 1% from the prior quarter and 8% from the prior year quarter to $22.26.
  • December 31, 2021, CET1 capital ratio of 12.25%, leverage ratio of 9.41% and total risk-based capital ratio of 15.73%.

Dividend and Stock Repurchase

  • The Board of Directors approved a first-quarter cash dividend of $0.28 per share at a meeting held today. The dividend will be paid on March 15, 2022 to shareholders of record as of March 1, 2022. The cash dividend is $0.01 or 3.7% higher than the dividend paid in the first quarter of 2021. The $0.28 cash dividend has an effective yield of 2.85% as of the market close on January 21, 2022.
  • The Company purchased 204,637 shares of common stock during the fourth quarter of 2021 at a weighted average price of $37.29 excluding commissions. The repurchase program under which these shares were purchased expired on December 31, 2021.
  • On December 20, 2021, the Board of Directors authorized a repurchase program for NBT to repurchase up to 2,000,000 shares of its outstanding common stock. This plan expires on December 31, 2023.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Thursday, January 27, 2022, to review fourth 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 December 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 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 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, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, including the Delta and Omicron variants, the impact of the COVID-19 pandemic on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected. Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Measures

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

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


NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)
      
  2021  2020 
 4th Q3rd Q2nd Q1st Q4th Q
Profitability:     
Diluted earnings per share$ 0.86 $0.86 $0.92 $0.91 $0.78 
Weighted average diluted common shares outstanding 43,574,539  43,631,497  43,792,940  43,889,889  43,973,971 
Return on average assets3 1.23% 1.26% 1.39% 1.46% 1.24%
Return on average equity3 11.89% 12.04% 13.42% 13.57% 11.59%
Return on average tangible common equity1 3 15.70% 15.97% 17.93% 18.24% 15.71%
Net interest margin1 3 3.08% 2.88% 3.00% 3.17% 3.20%
      
 12 Months Ended December 31,   
  2021  2020    
Profitability:     
Diluted earnings per share$ 3.54 $2.37    
Weighted average diluted common shares outstanding 43,718,804  43,988,623    
Return on average assets 1.33% 0.99%   
Return on average equity 12.71% 9.09%   
Return on average tangible common equity1 16.92% 12.48%   
Net interest margin1 3.03% 3.31%   
      
  2021  2020 
 4th Q3rd Q2nd Q1st Q4th Q
Balance sheet data:     
Short-term interest-bearing accounts$ 1,111,296 $1,131,074 $883,758 $972,195 $512,686 
Securities available for sale 1,687,361  1,576,030  1,534,733  1,387,028  1,348,698 
Securities held to maturity 733,210  683,103  622,351  592,999  616,560 
Net loans 7,406,459  7,473,442  7,419,127  7,528,459  7,388,885 
Total assets 12,012,111  11,994,411  11,574,947  11,537,253  10,932,906 
Total deposits 10,234,469  10,195,178  9,785,257  9,815,930  9,081,692 
Total borrowings 311,476  313,311  304,110  308,766  406,731 
Total liabilities 10,761,658  10,752,954  10,349,891  10,346,272  9,745,288 
Stockholders' equity 1,250,453  1,241,457  1,225,056  1,190,981  1,187,618 
      
Capital:     
Equity to assets 10.41% 10.35% 10.58% 10.32% 10.86%
Tangible equity ratio1 8.20% 8.13% 8.28% 8.00% 8.41%
Book value per share$ 28.97 $28.65 $28.19 $27.43 $27.22 
Tangible book value per share2$ 22.26 $21.95 $21.50 $20.71 $20.52 
Leverage ratio 9.41% 9.47% 9.40% 9.60% 9.56%
Common equity tier 1 capital ratio 12.25% 12.20% 12.12% 12.13% 11.84%
Tier 1 capital ratio 13.43% 13.39% 13.34% 13.38% 13.09%
Total risk-based capital ratio 15.73% 15.74% 15.78% 15.92% 15.62%
Common stock price (end of period)$ 38.52 $36.12 $35.97 $39.90 $32.10 
 


NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)
      
  2021  2020 
 4th Q3rd Q2nd Q1st Q4th Q
Asset quality:     
Nonaccrual loans$ 30,285 $35,737 $40,550 $43,399 $44,647 
90 days past due and still accruing 2,458  2,940  2,575  2,155  3,149 
Total nonperforming loans 32,743  38,677  43,125  45,554  47,796 
Other real estate owned 167  859  798  1,318  1,458 
Total nonperforming assets 32,910  39,536  43,923  46,872  49,254 
Allowance for loan losses 92,000  93,000  98,500  105,000  110,000 
      
Asset quality ratios (total):     
Allowance for loan losses to total loans 1.23% 1.23% 1.31% 1.38% 1.47%
Total nonperforming loans to total loans 0.44% 0.51% 0.57% 0.60% 0.64%
Total nonperforming assets to total assets 0.27% 0.33% 0.38% 0.41% 0.45%
Allowance for loan losses to total nonperforming loans 280.98% 240.45% 228.41% 230.50% 230.14%
Past due loans to total loans4 0.29% 0.46% 0.26% 0.22% 0.37%
Net charge-offs to average loans3 0.22% 0.11% 0.07% 0.12% 0.21%
      
Asset quality ratios (excluding paycheck protection program):
Allowance for loan losses to total loans 1.24% 1.28% 1.38% 1.48% 1.56%
Total nonperforming loans to total loans 0.44% 0.53% 0.60% 0.64% 0.68%
Total nonperforming assets to total assets 0.28% 0.34% 0.39% 0.43% 0.47%
Allowance for loan losses to total nonperforming loans 280.96% 240.42% 228.36% 230.44% 230.10%
Past due loans to total loans4 0.29% 0.48% 0.27% 0.23% 0.39%
Net charge-offs to average loans3 0.22% 0.12% 0.07% 0.13% 0.22%
      
  2021  2020 
 4th Q3rd Q2nd Q1st Q4th Q
 
Allowance for loan losses as a percentage of loans by segment:
Commercial & industrial 0.78% 0.83% 1.11% 1.20% 1.34%
Commercial real estate 0.78% 0.93% 1.26% 1.48% 1.49%
Paycheck protection program 0.01% 0.01% 0.01% 0.01% 0.01%
Residential real estate 0.92% 0.93% 0.98% 1.03% 1.07%
Auto 0.79% 0.78% 0.76% 0.78% 0.93%
Other consumer 4.49% 4.57% 4.27% 4.34% 4.55%
Total 1.23% 1.23% 1.31% 1.38% 1.47%
Total excluding PPP loans 1.24% 1.28% 1.38% 1.48% 1.56%
      
  2021  2020 
Loans by line of business: 4th Q3rd Q2nd Q1st Q4th Q
Commercial$ 1,489,414 $1,466,597 $1,479,258 $1,466,841 $1,451,560 
Commercial real estate 2,321,193  2,320,341  2,265,754  2,242,289  2,196,477 
Paycheck protection program 101,222  276,195  359,738  536,494  430,810 
Residential real estate mortgages 1,571,232  1,549,684  1,512,354  1,478,216  1,466,662 
Indirect auto 859,454  873,860  899,324  913,083  931,286 
Specialty lending 778,291  692,919  602,585  577,509  579,644 
Home equity 330,357  339,316  351,469  369,633  387,974 
Other consumer 47,296  47,530  47,145  49,394  54,472 
Total loans$ 7,498,459 $7,566,442 $7,517,627 $7,633,459 $7,498,885 
      
PPP unamortized fees (dollars in millions)$ 3.4 $10.5 $12.6 $14.2 $6.9 
      


NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, dollars in thousands)
   
 December 31,December 31,
Assets 2021  2020 
Cash and due from banks$ 157,775 $159,995 
Short-term interest-bearing accounts 1,111,296  512,686 
Equity securities, at fair value 33,550  30,737 
Securities available for sale, at fair value 1,687,361  1,348,698 
Securities held to maturity (fair value $735,260 and $636,827, respectively) 733,210  616,560 
Federal Reserve and Federal Home Loan Bank stock 25,098  27,353 
Loans held for sale 830  1,119 
Loans 7,498,459  7,498,885 
Less allowance for loan losses 92,000  110,000 
Net loans$ 7,406,459 $7,388,885 
Premises and equipment, net 72,093  74,206 
Goodwill 280,541  280,541 
Intangible assets, net 8,927  11,735 
Bank owned life insurance 228,238  186,434 
Other assets 266,733  293,957 
Total assets$ 12,012,111 $10,932,906 
   
Liabilities and stockholders' equity  
Demand (noninterest bearing)$ 3,689,556 $3,241,123 
Savings, NOW and money market 6,043,441  5,207,090 
Time 501,472  633,479 
Total deposits$ 10,234,469 $9,081,692 
Short-term borrowings 97,795  168,386 
Long-term debt 13,995  39,097 
Subordinated debt, net 98,490  98,052 
Junior subordinated debt 101,196  101,196 
Other liabilities 215,713  256,865 
Total liabilities$ 10,761,658 $9,745,288 
   
Total stockholders' equity$ 1,250,453 $1,187,618 
   
Total liabilities and stockholders' equity$ 12,012,111 $10,932,906 
   


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,
  2021  2020  2021  2020 
Interest, fee and dividend income    
Interest and fees on loans$ 79,470 $76,863 $ 302,175 $307,859 
Securities available for sale 6,101  5,478  23,305  22,434 
Securities held to maturity 3,097  3,532  12,551  15,283 
Other 639  568  1,845  2,706 
Total interest, fee and dividend income$ 89,307 $86,441 $ 339,876 $348,282 
Interest expense    
Deposits$ 2,132 $3,887 $ 10,714 $22,070 
Short-term borrowings 28  193  158  3,408 
Long-term debt 88  369  389  1,553 
Subordinated debt 1,360  1,339  5,437  2,842 
Junior subordinated debt 518  545  2,090  2,731 
Total interest expense$ 4,126 $6,333 $ 18,788 $32,604 
Net interest income$ 85,181 $80,108 $ 321,088 $315,678 
Provision for loan losses 3,097  (607) (8,257) 51,134 
Net interest income after provision for loan losses$ 82,084 $80,715 $ 329,345 $264,544 
Noninterest income    
Service charges on deposit accounts$ 3,804 $3,588 $ 13,348 $13,201 
ATM and debit card fees 7,958  6,776  31,301  25,960 
Retirement plan administration fees 11,816  9,011  42,188  35,851 
Wealth management fees 8,619  7,456  33,718  29,247 
Insurance services 3,394  3,454  14,083  14,757 
Bank owned life insurance income 1,629  1,733  6,217  5,743 
Net securities (losses) gains (2) 160  566  (388)
Other 3,893  5,937  16,373  21,905 
Total noninterest income$ 41,111 $38,115 $ 157,794 $146,276 
Noninterest expense    
Salaries and employee benefits$ 44,118 $41,016 $ 172,580 $161,934 
Occupancy 5,641  5,280  21,922  21,634 
Data processing and communications 3,950  4,157  16,989  16,527 
Professional fees and outside services 4,903  4,388  16,306  15,082 
Equipment 5,607  5,395  21,854  19,889 
Office supplies and postage 1,528  1,517  6,006  6,138 
FDIC expense 798  739  3,041  2,688 
Advertising 1,019  827  2,521  2,288 
Amortization of intangible assets 651  822  2,808  3,395 
Loan collection and other real estate owned, net 956  930  2,915  3,295 
Other 5,934  10,133  20,339  24,863 
Total noninterest expense$ 75,105 $75,204 $ 287,281 $277,733 
Income before income tax expense$ 48,090 $43,626 $ 199,858 $133,087 
Income tax expense 10,780  9,432  44,973  28,699 
Net income$ 37,310 $34,194 $ 154,885 $104,388 
Earnings Per Share    
Basic$ 0.86 $0.78 $ 3.57 $2.39 
Diluted$ 0.86 $0.78 $ 3.54 $2.37 
     


NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, dollars in thousands except per share data)
      
  2021  2020 
 4th Q3rd Q2nd Q1st Q4th Q
Interest, fee and dividend income     
Interest and fees on loans$ 79,470 $72,817 $74,795 $75,093 $76,863 
Securities available for sale 6,101  5,898  5,762  5,544  5,478 
Securities held to maturity 3,097  2,976  3,096  3,382  3,532 
Other 639  524  391  291  568 
Total interest, fee and dividend income$ 89,307 $82,215 $84,044 $84,310 $86,441 
Interest expense     
Deposits$ 2,132 $2,548 $2,862 $3,172 $3,887 
Short-term borrowings 28  28  32  70  193 
Long-term debt 88  89  88  124  369 
Subordinated debt 1,360  1,359  1,359  1,359  1,339 
Junior subordinated debt 518  517  525  530  545 
Total interest expense$ 4,126 $4,541 $4,866 $5,255 $6,333 
Net interest income$ 85,181 $77,674 $79,178 $79,055 $80,108 
Provision for loan losses 3,097  (3,342) (5,216) (2,796) (607)
Net interest income after provision for loan losses$ 82,084 $81,016 $84,394 $81,851 $80,715 
Noninterest income     
Service charges on deposit accounts$ 3,804 $3,489 $3,028 $3,027 $3,588 
ATM and debit card fees 7,958  8,172  8,309  6,862  6,776 
Retirement plan administration fees 11,816  10,495  9,779  10,098  9,011 
Wealth management fees 8,619  8,783  8,406  7,910  7,456 
Insurance services 3,394  3,720  3,508  3,461  3,454 
Bank owned life insurance income 1,629  1,548  1,659  1,381  1,733 
Net securities (losses) gains (2) (100) 201  467  160 
Other 3,893  4,222  4,426  3,832  5,937 
Total noninterest income$ 41,111 $40,329 $39,316 $37,038 $38,115 
Noninterest expense     
Salaries and employee benefits$ 44,118 $44,190 $42,671 $41,601 $41,016 
Occupancy 5,641  5,117  5,291  5,873  5,280 
Data processing and communications 3,950  3,881  4,427  4,731  4,157 
Professional fees and outside services 4,903  3,784  4,030  3,589  4,388 
Equipment 5,607  5,577  5,493  5,177  5,395 
Office supplies and postage 1,528  1,364  1,615  1,499  1,517 
FDIC expense 798  772  663  808  739 
Advertising 1,019  583  468  451  827 
Amortization of intangible assets 651  663  682  812  822 
Loan collection and other real estate owned, net 956  706  663  590  930 
Other 5,934  6,232  5,416  2,757  10,133 
Total noninterest expense$ 75,105 $72,869 $71,419 $67,888 $75,204 
Income before income tax expense$ 48,090 $48,476 $52,291 $51,001 $43,626 
Income tax expense 10,780  11,043  11,995  11,155  9,432 
Net income$ 37,310 $37,433 $40,296 $39,846 $34,194 
Earnings Per Share     
Basic$ 0.86 $0.86 $0.93 $0.91 $0.78 
Diluted$ 0.86 $0.86 $0.92 $0.91 $0.78 
      


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 - 2021Q3 - 2021Q2 - 2021Q1 - 2021Q4 - 2020
Assets           
Short-term interest-bearing accounts $ 1,145,7940.16%$1,014,1200.16%$974,0340.09%$587,3580.09%$552,5290.11%
Securities available for sale1 5  1,608,1281.51% 1,513,0711.55% 1,453,0681.59% 1,346,3801.67% 1,230,4111.77%
Securities held to maturity1 5  730,9881.82% 657,3141.95% 604,5822.23% 607,4072.43% 640,4222.36%
Investment in FRB and FHLB Banks  25,1492.74% 25,1541.91% 25,1152.67% 25,6062.45% 28,2755.94%
Loans1 6  7,507,1654.20% 7,517,8393.84% 7,574,2723.96% 7,574,3374.02% 7,533,9534.06%
Total interest-earning assets $ 11,017,2243.23%$10,727,4983.05%$10,631,0713.18%$10,141,0883.38%$9,985,5903.46%
Other assets  982,136  1,019,797  971,681  960,994  954,123 
Total assets $ 11,999,360 $11,747,295 $11,602,752 $11,102,082 $10,939,713 
            
Liabilities and stockholders' equity            
Money market deposit accounts $ 2,678,4770.16%$2,580,5700.19%$2,605,7670.21%$2,484,1200.23%$2,455,5100.27%
NOW deposit accounts  1,551,8460.05% 1,442,6780.05% 1,454,7510.05% 1,358,9550.05% 1,315,3700.05%
Savings deposits  1,725,0040.05% 1,691,5390.05% 1,660,7220.05% 1,547,9830.05% 1,465,5620.05%
Time deposits  537,8750.46% 565,2160.62% 591,1470.75% 615,3430.93% 645,2881.15%
Total interest-bearing deposits $ 6,493,2020.13%$6,280,0030.16%$6,312,3870.18%$6,006,4010.21%$5,881,7300.26%
Short-term borrowings  97,4550.11% 99,7030.11% 95,2260.13% 115,1820.25% 175,5970.44%
Long-term debt  14,0042.49% 14,0292.52% 14,0532.51% 19,9132.53% 59,4882.47%
Subordinated debt, net  98,4225.48% 98,3115.48% 98,2045.55% 98,0955.62% 97,9845.44%
Junior subordinated debt  101,1962.03% 101,1962.03% 101,1962.08% 101,1962.12% 101,1962.14%
Total interest-bearing liabilities $ 6,804,2790.24%$6,593,2420.27%$6,621,0660.29%$6,340,7870.34%$6,315,9950.40%
Demand deposits  3,719,070  3,676,883  3,542,176  3,319,024  3,178,410 
Other liabilities  231,260  244,125  235,536  250,991  271,206 
Stockholders' equity  1,244,751  1,233,045  1,203,974  1,191,280  1,174,102 
Total liabilities and stockholders' equity $ 11,999,360 $11,747,295 $11,602,752 $11,102,082 $10,939,713 
            
Interest rate spread  2.99% 2.78% 2.89% 3.04% 3.06%
Net interest margin (FTE)1  3.08% 2.88% 3.00% 3.17% 3.20%
            


NBT Bancorp Inc. and Subsidiaries
Average Year-to-Date Balance Sheets
(unaudited, dollars in thousands)
        
  Average Yield/Average Yield/
  BalanceInterestRates BalanceInterestRates
Twelve Months Ended December 31,  2021  2020 
Assets       
Short-term interest-bearing accounts $ 932,086$ 1,2290.13%$372,144$6100.16%
Securities available for sale1 5  1,480,969 23,3051.57% 1,079,600 22,4342.08%
Securities held to maturity1 5  650,431 13,5862.09% 624,668 16,3632.62%
Investment in FRB and FHLB Banks  25,255 6162.44% 33,570 2,0966.24%
Loans1 6  7,543,149 302,3314.01% 7,461,795 308,0804.13%
Total interest-earning assets $ 10,631,890$ 341,0673.21%$9,571,777$349,5833.65%
Other assets  983,809   942,274  
Total assets $ 11,615,699  $10,514,051  
        
Liabilities and stockholders' equity       
Money market deposit accounts $ 2,587,748$ 5,1170.20%$2,320,947$10,3130.44%
NOW deposit accounts  1,452,560 7380.05% 1,194,398 7160.06%
Savings deposits  1,656,893 8290.05% 1,393,436 7450.05%
Time deposits  577,150 4,0300.70% 733,073 10,2961.40%
Total interest-bearing deposits $ 6,274,351$ 10,7140.17%$5,641,854$22,0700.39%
Short-term borrowings  101,838 1580.16% 352,809 3,4080.97%
Long-term debt  15,479 3892.51% 62,990 1,5532.47%
Subordinated debt, net  98,259 5,4375.53% 51,394 2,8425.53%
Junior subordinated debt  101,196 2,0902.07% 101,196 2,7312.70%
Total interest-bearing liabilities $ 6,591,123$ 18,7880.29%$6,210,243$32,6040.53%
Demand deposits  3,565,693   2,895,341  
Other liabilities  240,434   259,992  
Stockholders' equity  1,218,449   1,148,475  
Total liabilities and stockholders' equity $ 11,615,699  $10,514,051  
Net interest income (FTE)1  $ 322,279  $316,979 
Interest rate spread   2.92%  3.12%
Net interest margin (FTE)1   3.03%  3.31%
Taxable equivalent adjustment  $ 1,191  $1,301 
Net interest income  $ 321,088  $315,678 
        


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 
  4th Q3rd Q2nd Q1st Q4th Q
 Net income 37,310  37,433  40,296  39,846  34,194 
 Income tax expense 10,780  11,043  11,995  11,155  9,432 
 Provision for loan losses 3,097  (3,342) (5,216) (2,796) (607)
 FTE adjustment 292  298  299  302  318 
 Net securities losses (gains) 2  100  (201) (467) (160)
 Provision for unfunded loan commitments reserve (250) (470) (80) (500) 900 
 Nonrecurring expense 250  2,288  1,880  -  4,100 
 PPNR$ 51,481 $47,350 $48,973 $47,540 $48,177 
       
 Average Assets$ 11,999,360 $11,747,295 $11,602,757 $11,102,082 $10,939,713 
       
 Return on Average Assets3 1.23% 1.26% 1.39% 1.46% 1.24%
 PPNR Return on Average Assets3 1.70% 1.60% 1.69% 1.74% 1.75%
       
  12 Months Ended December 31,   
   2021  2020    
 Net income$ 154,885 $104,388    
 Income tax expense 44,973  28,699    
 Provision for loan losses (8,257) 51,134    
 FTE adjustment 1,191  1,301    
 Net securities (gains) losses (566) 388    
 Provision for unfunded loan commitments reserve (1,300) 2,700    
 Nonrecurring expense 4,418  4,750    
 PPNR$ 195,344 $193,360    
       
 Average Assets$ 11,615,699 $10,514,051    
       
 Return on Average Assets 1.33% 0.99%   
 PPNR Return on Average Assets 1.68% 1.84%   
       
 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 
  4th Q3rd Q2nd Q1st Q4th Q
 Net interest income$ 85,181 $77,674 $79,178 $79,055 $80,108 
 Add: FTE adjustment 292  298  299  302  318 
 Net interest income (FTE)$ 85,473 $77,972 $79,477 $79,357 $80,426 
 Average earning assets$ 11,017,224 $10,727,498 $10,631,071 $10,141,088 $9,985,590 
 Net interest margin (FTE)3 3.08% 2.88% 3.00% 3.17% 3.20%
       
  12 Months Ended December 31,   
   2021  2020    
 Net interest income$ 321,088 $315,678    
 Add: FTE adjustment 1,191  1,301    
 Net interest income (FTE)$ 322,279 $316,979    
 Average earning assets$ 10,631,890 $9,571,777    
 Net interest margin (FTE) 3.03% 3.31%   
       
 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 
  4th Q3rd Q2nd Q1st Q4th Q
 Total equity$ 1,250,453 $1,241,457 $1,225,056 $1,190,981 $1,187,618 
 Intangible assets 289,468  290,119  290,782  291,464  292,276 
 Total assets$ 12,012,111 $11,994,411 $11,574,947 $11,537,253 $10,932,906 
 Tangible equity to tangible assets 8.20% 8.13% 8.28% 8.00% 8.41%
       
 Return on average tangible common equity 2021  2020 
  4th Q3rd Q2nd Q1st Q4th Q
 Net income$ 37,310 $37,433 $40,296 $39,846 $34,194 
 Amortization of intangible assets (net of tax) 488  497  512  609  617 
 Net income, excluding intangibles amortization$ 37,798 $37,930 $40,808 $40,455 $34,811 
       
 Average stockholders' equity$ 1,244,751 $1,233,045 $1,203,974 $1,191,280 $1,174,102 
 Less: average goodwill and other intangibles 289,834  290,492  291,133  291,921  292,725 
 Average tangible common equity$ 954,917 $942,553 $912,841 $899,359 $881,377 
 Return on average tangible common equity3 15.70% 15.97% 17.93% 18.24% 15.71%
       
  12 Months Ended December 31,   
   2021  2020    
 Net income$ 154,885 $104,388    
 Amortization of intangible assets (net of tax) 2,106  2,546    
 Net income, excluding intangibles amortization$ 156,991 $106,934    
       
 Average stockholders' equity$ 1,218,449 $1,148,475    
 Less: average goodwill and other intangibles 290,838  291,787    
 Average tangible common equity$ 927,611 $856,688    
 Return on average tangible common equity 16.92% 12.48%   
       
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.
       

 


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