Net income for the three months ended
Pre-provision net revenue (“PPNR”)1 for the second quarter of 2020 was
CEO Comments
“NBT was able to grow pre-provision net revenue. Asset quality remained stable during this extraordinary quarter despite the significant challenges presented by the pandemic. Our team has demonstrated an unwavering commitment to provide superior service to our customers and participate in initiatives to support our communities during these difficult times,” said NBT President and CEO,
Second Quarter Financial Highlights
Net Income |
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Net Interest Income / NIM |
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PPNR |
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Loans and Credit Quality |
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Capital |
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Loans
Deposits
Net Interest Income and Net Interest Margin
Credit Quality and CECL
Noninterest Income
Noninterest Expense
Income Taxes
Capital
Dividend
Conference Call and Webcast
The Company will host a conference call at
Corporate Overview
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
Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and its impact on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in
Contact: | |
607-337-6589 |
Selected Financial Data | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
Profitability: | |||||||||||||||
Diluted earnings per share | $ | 0.56 | $ | 0.23 | $ | 0.66 | $ | 0.73 | $ | 0.69 | |||||
Weighted average diluted common shares outstanding | 43,928,344 | 44,130,324 | 44,174,201 | 44,138,495 | 44,120,377 | ||||||||||
Return on average assets2 | 0.94 | % | 0.43 | % | 1.20 | % | 1.34 | % | 1.28 | % | |||||
Return on average equity2 | 8.76 | % | 3.69 | % | 10.36 | % | 11.83 | % | 11.63 | % | |||||
Return on average tangible common equity1 2 | 12.14 | % | 5.24 | % | 14.28 | % | 16.43 | % | 16.38 | % | |||||
Net interest margin1 2 | 3.38 | % | 3.52 | % | 3.52 | % | 3.57 | % | 3.61 | % | |||||
6 Months ended |
|||||||||||||||
2020 | 2019 | ||||||||||||||
Profitability: | |||||||||||||||
Diluted earnings per share | $ | 0.80 | $ | 1.35 | |||||||||||
Weighted average diluted common shares outstanding | 44,026,420 | 44,096,681 | |||||||||||||
Return on average assets2 | 0.69 | % | 1.26 | % | |||||||||||
Return on average equity2 | 6.23 | % | 11.57 | % | |||||||||||
Return on average tangible common equity1 2 | 8.69 | % | 16.41 | % | |||||||||||
Net interest margin1 2 | 3.45 | % | 3.63 | % | |||||||||||
2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
Balance sheet data: | |||||||||||||||
Securities available for sale | $ | 1,108,443 | $ | 1,000,980 | $ | 975,340 | $ | 932,173 | $ | 979,696 | |||||
Securities held to maturity | 599,164 | 621,359 | 630,074 | 678,435 | 744,601 | ||||||||||
Net loans | 7,514,491 | 7,147,383 | 7,063,133 | 6,941,444 | 6,891,108 | ||||||||||
Total assets | 10,847,184 | 9,953,543 | 9,715,925 | 9,661,386 | 9,635,718 | ||||||||||
Total deposits | 8,815,891 | 7,864,638 | 7,587,820 | 7,743,166 | 7,593,706 | ||||||||||
Total borrowings | 602,988 | 714,283 | 820,682 | 628,701 | 794,829 | ||||||||||
Total liabilities | 9,704,532 | 8,841,364 | 8,595,528 | 8,562,785 | 8,560,895 | ||||||||||
Stockholders' equity | 1,142,652 | 1,112,179 | 1,120,397 | 1,098,601 | 1,074,823 | ||||||||||
Capital: | |||||||||||||||
Equity to assets | 10.53 | % | 11.17 | % | 11.53 | % | 11.37 | % | 11.15 | % | |||||
Tangible equity ratio1 | 8.04 | % | 8.55 | % | 8.84 | % | 8.65 | % | 8.41 | % | |||||
Book value per share | $ | 26.20 | $ | 25.52 | $ | 25.58 | $ | 25.09 | $ | 24.56 | |||||
Tangible book value per share3 | $ | 19.46 | $ | 18.96 | $ | 19.03 | $ | 18.52 | $ | 17.97 | |||||
Tier 1 leverage ratio | 9.44 | % | 10.02 | % | 10.33 | % | 10.15 | % | 9.88 | % | |||||
Common equity tier 1 capital ratio | 11.34 | % | 10.90 | % | 11.29 | % | 11.14 | % | 10.95 | % | |||||
Tier 1 capital ratio | 12.60 | % | 12.14 | % | 12.56 | % | 12.42 | % | 12.24 | % | |||||
Total risk-based capital ratio | 15.15 | % | 13.36 | % | 13.52 | % | 13.38 | % | 13.21 | % | |||||
Common stock price (end of period) | $ | 30.06 | $ | 32.39 | $ | 40.56 | $ | 36.59 | $ | 37.51 | |||||
Note: Year-to-date EPS may not equal sum of quarters due to differences in outstanding shares. | |||||||||||||||
Selected Financial Data | |||||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||||
2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||||
Asset quality: | |||||||||||||||
Nonaccrual loans | $ | 25,567 | $ | 29,972 | $ | 25,174 | $ | 24,623 | $ | 24,669 | |||||
90 days past due and still accruing | 2,057 | 2,280 | 3,717 | 8,342 | 2,387 | ||||||||||
Total nonperforming loans | 27,624 | 32,252 | 28,891 | 32,965 | 27,056 | ||||||||||
Other real estate owned | 1,783 | 2,384 | 1,458 | 2,144 | 2,203 | ||||||||||
Total nonperforming assets | 29,407 | 34,636 | 30,349 | 35,109 | 29,259 | ||||||||||
Allowance for loan losses | 113,500 | 100,000 | 72,965 | 72,365 | 72,165 | ||||||||||
Asset quality ratios (total): | |||||||||||||||
Allowance for loan losses to total loans | 1.49 | % | 1.38 | % | 1.02 | % | 1.03 | % | 1.04 | % | |||||
Total nonperforming loans to total loans | 0.36 | % | 0.45 | % | 0.40 | % | 0.47 | % | 0.39 | % | |||||
Total nonperforming assets to total assets | 0.27 | % | 0.35 | % | 0.31 | % | 0.36 | % | 0.30 | % | |||||
Allowance for loan losses to total nonperforming loans | 410.87 | % | 310.06 | % | 252.55 | % | 219.52 | % | 266.72 | % | |||||
Past due loans to total loans | 0.30 | % | 0.51 | % | 0.49 | % | 0.57 | % | 0.52 | % | |||||
Net charge-offs to average loans2 | 0.28 | % | 0.32 | % | 0.30 | % | 0.35 | % | 0.38 | % | |||||
Asset quality ratios (excluding paycheck protection plan): | |||||||||||||||
Allowance for loan losses to total loans | 1.59 | % | 1.38 | % | 1.02 | % | 1.03 | % | 1.04 | % | |||||
Total nonperforming loans to total loans | 0.39 | % | 0.45 | % | 0.40 | % | 0.47 | % | 0.39 | % | |||||
Total nonperforming assets to total assets | 0.28 | % | 0.35 | % | 0.31 | % | 0.36 | % | 0.30 | % | |||||
Allowance for loan losses to total nonperforming loans | 410.78 | % | 310.06 | % | 252.55 | % | 219.52 | % | 266.72 | % | |||||
Past due loans to total loans | 0.32 | % | 0.51 | % | 0.49 | % | 0.57 | % | 0.52 | % | |||||
Net charge-offs to average loans2 | 0.30 | % | 0.32 | % | 0.30 | % | 0.35 | % | 0.38 | % | |||||
Consolidated Balance Sheets | |||||
(unaudited, dollars in thousands) | |||||
Assets | 2020 | 2019 | |||
Cash and due from banks | $ | 171,264 | $ | 170,595 | |
Short-term interest bearing accounts | 528,228 | 46,248 | |||
Equity securities, at fair value | 29,223 | 27,771 | |||
Securities available for sale, at fair value | 1,108,443 | 975,340 | |||
Securities held to maturity (fair value |
599,164 | 630,074 | |||
32,536 | 44,620 | ||||
Loans held for sale | 16,147 | 11,731 | |||
Loans | 7,627,991 | 7,136,098 | |||
Less allowance for loan losses | 113,500 | 72,965 | |||
Net loans | $ | 7,514,491 | $ | 7,063,133 | |
Premises and equipment, net | 74,558 | 75,631 | |||
280,541 | 274,769 | ||||
Intangible assets, net | 13,413 | 12,020 | |||
Bank owned life insurance | 183,976 | 181,748 | |||
Other assets | 295,200 | 202,245 | |||
Total assets | $ | 10,847,184 | $ | 9,715,925 | |
Liabilities and stockholders' equity | |||||
Demand (noninterest bearing) | $ | 3,107,528 | $ | 2,414,383 | |
Savings, NOW and money market | 5,000,504 | 4,312,244 | |||
Time | 707,859 | 861,193 | |||
Total deposits | $ | 8,815,891 | $ | 7,587,820 | |
Short-term borrowings | 339,656 | 655,275 | |||
Long-term debt | 64,154 | 64,211 | |||
Subordinated debt, net | 97,982 | - | |||
Junior subordinated debt | 101,196 | 101,196 | |||
Other liabilities | 285,653 | 187,026 | |||
Total liabilities | $ | 9,704,532 | $ | 8,595,528 | |
Total stockholders' equity | $ | 1,142,652 | $ | 1,120,397 | |
Total liabilities and stockholders' equity | $ | 10,847,184 | $ | 9,715,925 | |
Consolidated Statements of Income | |||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Interest, fee and dividend income | |||||||||||
Interest and fees on loans | $ | 77,270 | $ | 81,271 | $ | 155,998 | $ | 160,592 | |||
Securities available for sale | 5,600 | 6,031 | 11,353 | 11,953 | |||||||
Securities held to maturity | 3,926 | 5,089 | 8,017 | 10,306 | |||||||
Other | 650 | 842 | 1,479 | 1,726 | |||||||
Total interest, fee and dividend income | $ | 87,446 | $ | 93,233 | $ | 176,847 | $ | 184,577 | |||
Interest expense | |||||||||||
Deposits | $ | 4,812 | $ | 10,234 | $ | 13,916 | $ | 19,060 | |||
Short-term borrowings | 972 | 2,760 | 2,769 | 5,997 | |||||||
Long-term debt | 393 | 471 | 786 | 893 | |||||||
Subordinated debt | 128 | - | 128 | - | |||||||
Junior subordinated debt | 695 | 1,141 | 1,621 | 2,309 | |||||||
Total interest expense | $ | 7,000 | $ | 14,606 | $ | 19,220 | $ | 28,259 | |||
Net interest income | $ | 80,446 | $ | 78,627 | $ | 157,627 | $ | 156,318 | |||
Provision for loan losses | 18,840 | 7,277 | 48,480 | 13,084 | |||||||
Net interest income after provision for loan losses | $ | 61,606 | $ | 71,350 | $ | 109,147 | $ | 143,234 | |||
Noninterest income | |||||||||||
Service charges on deposit accounts | $ | 2,529 | $ | 4,224 | $ | 6,526 | $ | 8,460 | |||
ATM and debit card fees | 6,136 | 6,156 | 11,990 | 11,681 | |||||||
Retirement plan administration fees | 9,214 | 7,836 | 17,155 | 15,570 | |||||||
Wealth management4 | 6,823 | 7,122 | 14,096 | 13,685 | |||||||
Insurance4 | 3,292 | 3,547 | 7,561 | 8,291 | |||||||
Bank owned life insurance income | 1,381 | 1,186 | 2,755 | 2,563 | |||||||
Net securities gains (losses) | 180 | (69 | ) | (632 | ) | (12 | ) | ||||
Other | 5,456 | 4,239 | 10,983 | 7,824 | |||||||
Total noninterest income | $ | 35,011 | $ | 34,241 | $ | 70,434 | $ | 68,062 | |||
Noninterest expense | |||||||||||
Salaries and employee benefits | $ | 39,717 | $ | 38,567 | $ | 80,467 | $ | 77,923 | |||
Occupancy | 5,065 | 5,443 | 11,060 | 11,718 | |||||||
Data processing and communications | 4,079 | 4,693 | 8,312 | 9,107 | |||||||
Professional fees and outside services | 3,403 | 3,359 | 7,300 | 7,027 | |||||||
Equipment | 4,779 | 4,518 | 9,421 | 9,275 | |||||||
Office supplies and postage | 1,455 | 1,577 | 3,091 | 3,168 | |||||||
993 | 949 | 1,304 | 1,966 | ||||||||
Advertising | 322 | 641 | 931 | 1,144 | |||||||
Amortization of intangible assets | 883 | 893 | 1,717 | 1,861 | |||||||
Loan collection and other real estate owned, net | 728 | 961 | 1,745 | 1,746 | |||||||
Other | 3,916 | 4,630 | 10,873 | 9,756 | |||||||
Total noninterest expense | $ | 65,340 | $ | 66,231 | $ | 136,221 | $ | 134,691 | |||
Income before income tax expense | $ | 31,277 | $ | 39,360 | $ | 43,360 | $ | 76,605 | |||
Income tax expense | 6,564 | 8,805 | 8,279 | 16,923 | |||||||
Net income | $ | 24,713 | $ | 30,555 | $ | 35,081 | $ | 59,682 | |||
Earnings Per Share | |||||||||||
Basic | $ | 0.57 | $ | 0.70 | $ | 0.80 | $ | 1.36 | |||
Diluted | $ | 0.56 | $ | 0.69 | $ | 0.80 | $ | 1.35 | |||
Quarterly Consolidated Statements of Income | |||||||||||||
(unaudited, dollars in thousands except per share data) | |||||||||||||
2020 | 2019 | ||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | |||||||||
Interest, fee and dividend income | |||||||||||||
Interest and fees on loans | $ | 77,270 | $ | 78,728 | $ | 79,800 | $ | 81,082 | $ | 81,271 | |||
Securities available for sale | 5,600 | 5,753 | 5,639 | 5,711 | 6,031 | ||||||||
Securities held to maturity | 3,926 | 4,091 | 4,213 | 4,586 | 5,089 | ||||||||
Other | 650 | 829 | 924 | 1,002 | 842 | ||||||||
Total interest, fee and dividend income | $ | 87,446 | $ | 89,401 | $ | 90,576 | $ | 92,381 | $ | 93,233 | |||
Interest expense | |||||||||||||
Deposits | $ | 4,812 | $ | 9,104 | $ | 10,181 | $ | 10,745 | $ | 10,234 | |||
Short-term borrowings | 972 | 1,797 | 1,707 | 1,989 | 2,760 | ||||||||
Long-term debt | 393 | 393 | 484 | 498 | 471 | ||||||||
Subordinated debt | 128 | - | - | - | - | ||||||||
Junior subordinated debt | 695 | 926 | 1,021 | 1,095 | 1,141 | ||||||||
Total interest expense | $ | 7,000 | $ | 12,220 | $ | 13,393 | $ | 14,327 | $ | 14,606 | |||
Net interest income | $ | 80,446 | $ | 77,181 | $ | 77,183 | $ | 78,054 | $ | 78,627 | |||
Provision for loan losses | 18,840 | 29,640 | 6,004 | 6,324 | 7,277 | ||||||||
Net interest income after provision for loan losses | $ | 61,606 | $ | 47,541 | $ | 71,179 | $ | 71,730 | $ | 71,350 | |||
Noninterest income | |||||||||||||
Service charges on deposit accounts | $ | 2,529 | $ | 3,997 | $ | 4,361 | $ | 4,330 | $ | 4,224 | |||
ATM and debit card fees | 6,136 | 5,854 | 5,935 | 6,277 | 6,156 | ||||||||
Retirement plan administration fees | 9,214 | 7,941 | 7,218 | 7,600 | 7,836 | ||||||||
Wealth management4 | 6,823 | 7,273 | 7,085 | 7,630 | 7,122 | ||||||||
Insurance4 | 3,292 | 4,269 | 3,479 | 4,000 | 3,547 | ||||||||
Bank owned life insurance income | 1,381 | 1,374 | 1,236 | 1,556 | 1,186 | ||||||||
Net securities gains (losses) | 180 | (812 | ) | 189 | 4,036 | (69 | ) | ||||||
Other | 5,456 | 5,527 | 6,738 | 4,291 | 4,239 | ||||||||
Total noninterest income | $ | 35,011 | $ | 35,423 | $ | 36,241 | $ | 39,720 | $ | 34,241 | |||
Noninterest expense | |||||||||||||
Salaries and employee benefits | $ | 39,717 | $ | 40,750 | $ | 39,592 | $ | 39,352 | $ | 38,567 | |||
Occupancy | 5,065 | 5,995 | 5,653 | 5,335 | 5,443 | ||||||||
Data processing and communications | 4,079 | 4,233 | 4,719 | 4,492 | 4,693 | ||||||||
Professional fees and outside services | 3,403 | 3,897 | 4,223 | 3,535 | 3,359 | ||||||||
Equipment | 4,779 | 4,642 | 4,821 | 4,487 | 4,518 | ||||||||
Office supplies and postage | 1,455 | 1,636 | 1,744 | 1,667 | 1,577 | ||||||||
993 | 311 | - | (20 | ) | 949 | ||||||||
Advertising | 322 | 609 | 952 | 677 | 641 | ||||||||
Amortization of intangible assets | 883 | 834 | 844 | 874 | 893 | ||||||||
Loan collection and other real estate owned, net | 728 | 1,017 | 1,436 | 976 | 961 | ||||||||
Other | 3,916 | 6,957 | 6,310 | 8,374 | 4,630 | ||||||||
Total noninterest expense | $ | 65,340 | $ | 70,881 | $ | 70,294 | $ | 69,749 | $ | 66,231 | |||
Income before income tax expense | $ | 31,277 | $ | 12,083 | $ | 37,126 | $ | 41,701 | $ | 39,360 | |||
Income tax expense | 6,564 | 1,715 | 8,166 | 9,322 | 8,805 | ||||||||
Net income | $ | 24,713 | $ | 10,368 | $ | 28,960 | $ | 32,379 | $ | 30,555 | |||
Earnings Per Share | |||||||||||||
Basic | $ | 0.57 | $ | 0.24 | $ | 0.66 | $ | 0.74 | $ | 0.70 | |||
Diluted | $ | 0.56 | $ | 0.23 | $ | 0.66 | $ | 0.73 | $ | 0.69 | |||
Average Quarterly Balance Sheets | |||||||||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||||||||
Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | Average Balance | Yield / Rates | ||||||||||||
Q2 - 2020 | Q1 - 2020 | Q4 - 2019 | Q3 - 2019 | Q2 - 2019 | |||||||||||||||||
Assets | |||||||||||||||||||||
Short-term interest bearing accounts | $ | 380,260 | 0.10 | % | $ | 74,695 | 1.28 | % | $ | 51,613 | 2.43 | % | $ | 57,530 | 1.95 | % | $ | 25,783 | 1.28 | % | |
Securities available for sale1 5 | 985,561 | 2.29 | % | 962,527 | 2.40 | % | 942,302 | 2.37 | % | 940,256 | 2.41 | % | 981,079 | 2.47 | % | ||||||
Securities held to maturity1 5 | 613,899 | 2.75 | % | 622,398 | 2.81 | % | 651,305 | 2.73 | % | 698,617 | 2.77 | % | 770,651 | 2.83 | % | ||||||
Investment in FRB and FHLB Banks | 36,604 | 6.09 | % | 39,784 | 5.97 | % | 37,842 | 6.37 | % | 40,525 | 7.04 | % | 46,179 | 6.60 | % | ||||||
Loans1 6 | 7,589,032 | 4.10 | % | 7,163,114 | 4.42 | % | 7,055,288 | 4.49 | % | 6,987,476 | 4.61 | % | 6,958,299 | 4.69 | % | ||||||
Total interest earning assets | $ | 9,605,356 | 3.68 | % | $ | 8,862,518 | 4.07 | % | $ | 8,738,350 | 4.13 | % | $ | 8,724,404 | 4.22 | % | $ | 8,781,991 | 4.28 | % | |
Other assets | 961,807 | 885,570 | 861,909 | 852,616 | 816,748 | ||||||||||||||||
Total assets | $ | 10,567,163 | $ | 9,748,088 | $ | 9,600,259 | $ | 9,577,020 | $ | 9,598,739 | |||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||
Money market deposit accounts | $ | 2,360,407 | 0.29 | % | $ | 2,101,306 | 1.00 | % | $ | 2,057,678 | 1.16 | % | $ | 2,015,297 | 1.24 | % | $ | 1,916,045 | 1.16 | % | |
NOW deposit accounts | 1,167,486 | 0.04 | % | 1,086,205 | 0.10 | % | 1,064,193 | 0.13 | % | 1,056,001 | 0.13 | % | 1,127,413 | 0.13 | % | ||||||
Savings deposits | 1,383,495 | 0.05 | % | 1,276,285 | 0.06 | % | 1,251,432 | 0.06 | % | 1,274,793 | 0.06 | % | 1,282,084 | 0.06 | % | ||||||
Time deposits | 760,803 | 1.48 | % | 842,989 | 1.62 | % | 853,353 | 1.69 | % | 893,837 | 1.75 | % | 953,698 | 1.73 | % | ||||||
Total interest bearing deposits | $ | 5,672,191 | 0.34 | % | $ | 5,306,785 | 0.69 | % | $ | 5,226,656 | 0.77 | % | $ | 5,239,928 | 0.81 | % | $ | 5,279,240 | 0.78 | % | |
Short-term borrowings | 427,004 | 0.92 | % | 533,516 | 1.35 | % | 475,332 | 1.42 | % | 490,694 | 1.61 | % | 620,898 | 1.78 | % | ||||||
Long-term debt | 64,165 | 2.46 | % | 64,194 | 2.46 | % | 81,613 | 2.35 | % | 84,250 | 2.35 | % | 82,414 | 2.29 | % | ||||||
Subordinated debt, net | 8,633 | 5.96 | % | - | - | - | - | - | - | - | - | ||||||||||
Junior subordinated debt | 101,196 | 2.76 | % | 101,196 | 3.68 | % | 101,196 | 4.00 | % | 101,196 | 4.29 | % | 101,196 | 4.52 | % | ||||||
Total interest bearing liabilities | $ | 6,273,189 | 0.45 | % | $ | 6,005,691 | 0.82 | % | $ | 5,884,797 | 0.90 | % | $ | 5,916,068 | 0.96 | % | $ | 6,083,748 | 0.96 | % | |
Demand deposits | 2,887,545 | 2,398,307 | 2,406,563 | 2,389,617 | 2,298,867 | ||||||||||||||||
Other liabilities | 271,635 | 214,495 | 199,674 | 185,374 | 162,374 | ||||||||||||||||
Stockholders' equity | 1,134,794 | 1,129,595 | 1,109,225 | 1,085,961 | 1,053,750 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 10,567,163 | $ | 9,748,088 | $ | 9,600,259 | $ | 9,577,020 | $ | 9,598,739 | |||||||||||
Interest rate spread | 3.23 | % | 3.25 | % | 3.23 | % | 3.26 | % | 3.32 | % | |||||||||||
Net interest margin (FTE)1 | 3.38 | % | 3.52 | % | 3.52 | % | 3.57 | % | 3.61 | % | |||||||||||
Average Year-to-Date Balance Sheets | |||||||||||||
(unaudited, dollars in thousands) | |||||||||||||
Average | Yield/ | Average | Yield/ | ||||||||||
Balance | Interest | Rates | Balance | Interest | Rates | ||||||||
Six Months Ended |
2020 | 2019 | |||||||||||
Assets | |||||||||||||
Short-term interest bearing accounts | $ | 227,478 | $ | 335 | 0.30 | % | $ | 17,471 | $ | 174 | 2.01 | % | |
Securities available for sale1 5 | 974,044 | 11,353 | 2.34 | % | 982,881 | 11,984 | 2.46 | % | |||||
Securities held to maturity1 5 | 618,149 | 8,554 | 2.78 | % | 776,577 | 11,043 | 2.87 | % | |||||
Investment in FRB and FHLB Banks | 38,194 | 1,144 | 6.02 | % | 47,657 | 1,552 | 6.57 | % | |||||
Loans1 6 | 7,376,072 | 156,119 | 4.26 | % | 6,922,684 | 160,768 | 4.68 | % | |||||
Total interest earning assets | $ | 9,233,937 | $ | 177,505 | 3.87 | % | $ | 8,747,270 | $ | 185,521 | 4.28 | % | |
Other assets | 923,689 | 806,225 | |||||||||||
Total assets | $ | 10,157,626 | $ | 9,553,495 | |||||||||
Liabilities and stockholders' equity | |||||||||||||
Money market deposit accounts | $ | 2,230,857 | $ | 6,965 | 0.63 | % | $ | 1,860,358 | $ | 9,974 | 1.08 | % | |
NOW deposit accounts | 1,126,845 | 404 | 0.07 | % | 1,131,291 | 817 | 0.15 | % | |||||
Savings deposits | 1,329,890 | 360 | 0.05 | % | 1,267,146 | 362 | 0.06 | % | |||||
Time deposits | 801,896 | 6,187 | 1.55 | % | 948,109 | 7,907 | 1.68 | % | |||||
Total interest bearing deposits | $ | 5,489,488 | $ | 13,916 | 0.51 | % | $ | 5,206,904 | $ | 19,060 | 0.74 | % | |
Short-term borrowings | 480,261 | 2,769 | 1.16 | % | 666,349 | 5,997 | 1.81 | % | |||||
Long-term debt | 64,179 | 786 | 2.46 | % | 78,085 | 893 | 2.31 | % | |||||
Subordinated debt, net | 4,316 | 128 | 5.96 | % | - | - | - | ||||||
Junior subordinated debt | 101,196 | 1,621 | 3.22 | % | 101,196 | 2,309 | 4.60 | % | |||||
Total interest bearing liabilities | $ | 6,139,440 | $ | 19,220 | 0.63 | % | $ | 6,052,534 | $ | 28,259 | 0.94 | % | |
Demand deposits | 2,642,926 | 2,304,169 | |||||||||||
Other liabilities | 243,066 | 156,963 | |||||||||||
Stockholders' equity | 1,132,194 | 1,039,829 | |||||||||||
Total liabilities and stockholders' equity | $ | 10,157,626 | $ | 9,553,495 | |||||||||
Net interest income (FTE)1 | $ | 158,285 | $ | 157,262 | |||||||||
Interest rate spread | 3.24 | % | 3.34 | % | |||||||||
Net interest margin (FTE)1 | 3.45 | % | 3.63 | % | |||||||||
Taxable equivalent adjustment | $ | 658 | $ | 944 | |||||||||
Net interest income | $ | 157,627 | $ | 156,318 | |||||||||
Consolidated Loan Balances | ||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||
The following table presents loans by line of business, paycheck protection plans loans includes |
||||||||||||||
2020 | 2019 | |||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||
Commercial | $ | 1,318,806 | $ | 1,338,609 | $ | 1,302,209 | $ | 1,317,649 | $ | 1,299,784 | ||||
Commercial real estate | 2,256,580 | 2,242,139 | 2,142,057 | 2,033,552 | 2,025,280 | |||||||||
Paycheck protection plan | 510,097 | - | - | - | - | |||||||||
Residential real estate mortgages | 1,460,058 | 1,446,676 | 1,445,156 | 1,416,920 | 1,404,079 | |||||||||
Indirect auto | 1,091,889 | 1,184,888 | 1,193,635 | 1,195,783 | 1,189,670 | |||||||||
Specialty lending | 515,618 | 539,378 | 542,063 | 528,505 | 519,974 | |||||||||
Home equity | 415,528 | 431,536 | 444,082 | 452,535 | 456,754 | |||||||||
Other consumer | 59,415 | 64,157 | 66,896 | 68,865 | 67,732 | |||||||||
Total loans | $ | 7,627,991 | $ | 7,247,383 | $ | 7,136,098 | $ | 7,013,809 | $ | 6,963,273 | ||||
The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of |
||||||||||||||
Industry | % of Total Loans | |||||||||||||
Accommodations | 2.6 | % | ||||||||||||
Healthcare services and practices | 2.0 | % | ||||||||||||
Restaurants and entertainment | 1.9 | % | ||||||||||||
Retailers | 1.6 | % | ||||||||||||
Automotive | 1.5 | % | ||||||||||||
Total | 9.6 | % | ||||||||||||
Allowance for Loan Losses as a Percentage of Loans by Segment7: | ||||||||||||||
Incurred | CECL | |||||||||||||
6/30/2020* | ||||||||||||||
Commercial & industrial | 0.96 | % | 0.98 | % | 1.43 | % | 1.25 | % | ||||||
Commercial real estate | 1.02 | % | 0.74 | % | 1.10 | % | 1.56 | % | ||||||
Paycheck protection plan | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | ||||||
Residential real estate | 0.27 | % | 0.83 | % | 0.99 | % | 1.13 | % | ||||||
Auto | 0.83 | % | 0.78 | % | 1.08 | % | 0.99 | % | ||||||
Other consumer | 3.74 | % | 3.66 | % | 4.00 | % | 5.01 | % | ||||||
Total | 1.02 | % | 1.07 | % | 1.38 | % | 1.49 | % | ||||||
* Excluding PPP loans and related allowance, total allowance to loans was 1.59% | ||||||||||||||
1 | The 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") | 2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||||
Income before income tax expense | $ | 31,277 | $ | 12,083 | $ | 37,126 | $ | 41,701 | $ | 39,360 | ||||||
FTE adjustment | 329 | 329 | 349 | 374 | 445 | |||||||||||
Provision for loan losses | 18,840 | 29,640 | 6,004 | 6,324 | 7,277 | |||||||||||
Net securities (gains) losses | (180 | ) | 812 | (189 | ) | (4,036 | ) | 69 | ||||||||
Nonrecurring expense | 650 | - | - | 3,800 | - | |||||||||||
Unfunded loan commitments reserve | (200 | ) | 2,000 | - | - | - | ||||||||||
PPNR | $ | 50,716 | $ | 44,864 | $ | 43,290 | $ | 48,163 | $ | 47,151 | ||||||
Average Assets | $ | 10,567,163 | $ | 9,748,088 | $ | 9,600,259 | $ | 9,577,020 | $ | 9,598,739 | ||||||
Return on Average Assets | 0.94 | % | 0.43 | % | 1.20 | % | 1.34 | % | 1.28 | % | ||||||
PPNR Return on Average Assets | 1.93 | % | 1.85 | % | 1.79 | % | 2.00 | % | 1.97 | % | ||||||
PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic, net securities gains (losses) and non-recurring income and/or expense. | ||||||||||||||||
FTE Adjustment | 2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||||
Net interest income | $ | 80,446 | $ | 77,181 | $ | 77,183 | $ | 78,054 | $ | 78,627 | ||||||
Add: FTE adjustment | 329 | 329 | 349 | 374 | 445 | |||||||||||
Net interest income (FTE) | $ | 80,775 | $ | 77,510 | $ | 77,532 | $ | 78,428 | $ | 79,072 | ||||||
Average earning assets | $ | 9,605,356 | $ | 8,862,518 | $ | 8,738,350 | $ | 8,724,404 | $ | 8,781,991 | ||||||
Net interest margin (FTE) | 3.38 | % | 3.52 | % | 3.52 | % | 3.57 | % | 3.61 | % | ||||||
6 Months ended |
||||||||||||||||
2020 | 2019 | |||||||||||||||
Net interest income | $ | 157,627 | $ | 156,318 | ||||||||||||
Add: FTE adjustment | 658 | 944 | ||||||||||||||
Net interest income (FTE) | $ | 158,285 | $ | 157,262 | ||||||||||||
Average earning assets | $ | 9,233,937 | $ | 8,747,270 | ||||||||||||
Net interest margin (FTE) | 3.45 | % | 3.63 | % | ||||||||||||
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. | ||||||||||||||||
Tangible equity to tangible assets | 2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||||
Total equity | $ | 1,142,652 | $ | 1,112,179 | $ | 1,120,397 | $ | 1,098,601 | $ | 1,074,823 | ||||||
Intangible assets | 293,954 | 285,955 | 286,789 | 287,633 | 288,507 | |||||||||||
Total assets | $ | 10,847,184 | $ | 9,953,543 | $ | 9,715,925 | $ | 9,661,386 | $ | 9,635,718 | ||||||
Tangible equity to tangible assets | 8.04 | % | 8.55 | % | 8.84 | % | 8.65 | % | 8.41 | % |
1 | The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: | |||||||||||||||
Non-GAAP measures | ||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||
Return on average tangible common equity | 2020 | 2019 | ||||||||||||||
2nd Q | 1st Q | 4th Q | 3rd Q | 2nd Q | ||||||||||||
Net income | $ | 24,713 | $ | 10,368 | $ | 28,960 | $ | 32,379 | $ | 30,555 | ||||||
Amortization of intangible assets (net of tax) | 662 | 626 | 633 | 656 | 670 | |||||||||||
Net income, excluding intangibles amortization | $ | 25,375 | $ | 10,994 | $ | 29,593 | $ | 33,035 | $ | 31,225 | ||||||
Average stockholders' equity | $ | 1,134,794 | $ | 1,129,595 | $ | 1,109,225 | $ | 1,085,961 | $ | 1,053,750 | ||||||
Less: average goodwill and other intangibles | 294,423 | 286,400 | 287,268 | 288,077 | 288,930 | |||||||||||
Average tangible common equity | $ | 840,371 | $ | 843,195 | $ | 821,957 | $ | 797,884 | $ | 764,820 | ||||||
Return on average tangible common equity | 12.14 | % | 5.24 | % | 14.28 | % | 16.43 | % | 16.38 | % | ||||||
6 Months ended |
||||||||||||||||
2020 | 2019 | |||||||||||||||
Net income | $ | 35,081 | $ | 59,682 | ||||||||||||
Amortization of intangible assets (net of tax) | 1,288 | 1,396 | ||||||||||||||
Net income, excluding intangibles amortization | $ | 36,369 | $ | 61,078 | ||||||||||||
Average stockholders' equity | $ | 1,132,194 | $ | 1,039,829 | ||||||||||||
Less: average goodwill and other intangibles | 290,411 | 289,419 | ||||||||||||||
Average tangible common equity | $ | 841,783 | $ | 750,410 | ||||||||||||
Return on average tangible common equity | 8.69 | % | 16.41 | % | ||||||||||||
2 | Annualized. | |||||||||||||||
3 | Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding. | |||||||||||||||
4 | Other financial services revenue previously disclosed and included with Insurance income has been reclassified and combined with Trust income and is disclosed as Wealth management income. | |||||||||||||||
5 | Securities are shown at average amortized cost. | |||||||||||||||
6 | For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. | |||||||||||||||
7 | The allowance for loan losses for |
Source: NBT Bancorp Inc.
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