NEWS & EVENTS

NBT Bancorp Inc. Announces Third Quarter 2024 Results and Declares Cash Dividend

NORWICH, N.Y., Oct. 28, 2024 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $38.1 million, or $0.80 per diluted common share, compared to $24.6 million, or $0.54 per diluted common share, for the three months ended September 30, 2023, and $32.7 million, or $0.69 per diluted common share, for the second quarter of 2024. Operating diluted earnings per share(1), a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses and unfunded loan commitments and securities gains (losses), net of tax, was $0.80 for the third quarter of 2024, compared to $0.84 for the third quarter of 2023 and $0.69 for the second quarter of 2024.

The Company completed the acquisition of Salisbury Bancorp, Inc. (“Salisbury”) on August 11, 2023, adding 13 banking offices, $1.18 billion in loans and $1.31 billion in deposits. The comparisons to the third quarter of 2023 are significantly impacted by the Salisbury acquisition.

CEO Comments

“Sequential growth in net interest income and margin for the second consecutive quarter as well as strong performance from our diverse mix of fee businesses drove NBT’s positive operating performance in the third quarter of 2024.” said NBT President and Chief Executive Officer Scott A. Kingsley. “In September, we entered into a definitive agreement to merge with Evans Bancorp, Inc. The greater Buffalo and Rochester communities served by Evans are a natural extension of NBT's footprint in Upstate New York, and our shared community banking values support our strategic rationale. We expect the merger to close in the second quarter of 2025, pending required approvals by regulatory agencies and Evans’ shareholders.”

Third Quarter 2024 Financial Highlights

Net Income
  • Net income was $38.1 million and diluted earnings per share was $0.80
Net Interest Income / NIM
  • Net interest income on a fully taxable equivalent (“FTE”) basis was $102.3 million, up $4.5 million from the prior quarter(1)
  • Net interest margin (“NIM”) on an FTE basis was 3.27%(1), up 9 basis points (“bps”) from the prior quarter
  • Included in FTE net interest income was $2.7 million of acquisition-related net accretion, which was consistent with the second quarter of 2024
  • Earning asset yields of 5.01% were up 9 bps from the prior quarter
  • Total cost of funds of 1.85% was consistent with the prior quarter
Noninterest Income
  • Noninterest income was at a record level of $45.3 million, or 30.8% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality
  • Period end total loans of $9.91 billion as of September 30, 2024, up $256.3 million, or 3.5% annualized, from December 31, 2023
  • Net charge-offs to average loans was 0.16% annualized
  • Nonperforming loans to total loans was 0.38%
  • Allowance for loan losses to total loans was 1.21%
Deposits
  • Deposits were $11.59 billion as of September 30, 2024, up $619.3 million, or 5.6%, from December 31, 2023
  • Total cost of deposits was 1.72% for the third quarter of 2024, up 4 bps from the second quarter of 2024
  • Full cycle to-date deposit beta of 31%
  • Composition of total deposits is diverse and granular with over 563,000 accounts with an average per account balance of $20,560
Capital
  • Stockholders’ equity was $1.52 billion as of September 30, 2024
  • Tangible book value per share(2) was $23.83 at September 30, 2024
  • Tangible equity to assets of 8.36%(1)
  • CET1 ratio of 11.86%; Leverage ratio of 10.29%


Loans

  • Period end total loans were $9.91 billion at September 30, 2024, $9.85 billion at June 30, 2024 and $9.65 billion at December 31, 2023.
  • Period end total loans increased $256.3 million from December 31, 2023. Total commercial loans increased $270.3 million to $5.25 billion; and total consumer loans decreased $13.9 million to $4.66 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $384.4 million, or 6.0% annualized.
  • Commercial line of credit utilization rate was 22% at September 30, 2024, compared to 23% at June 30, 2024 and 22% at September 30, 2023.

Deposits

  • Total deposits at September 30, 2024 were $11.59 billion, compared to $11.27 billion at June 30, 2024 and compared to $10.97 billion at December 31, 2023. The $619.3 million increase in deposits from December 31, 2023 was primarily due to higher consumer deposit balances and accounts and the inflow of seasonal municipal deposits. The Company continued to experience some incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
  • The loan to deposit ratio was 85.5% at September 30, 2024, compared to 88.0% at December 31, 2023.

Net Interest Income and Net Interest Margin

  • Net interest income for the third quarter of 2024 was $101.7 million, an increase of $4.5 million, or 4.6%, from the second quarter of 2024 and up $6.8 million, or 7.1%, from the third quarter of 2023. The increase in net interest income from the second quarter of 2024 resulted primarily from the increase in average loans and the interest earned on those balances combined with a more favorable funding mix, partially offset by the increase in the cost of deposits.
  • The NIM on an FTE basis for the third quarter of 2024 was 3.27%, an increase of 9 bps from the second quarter of 2024. This increase was driven by higher average earning asset yields, an improved funding mix with lower average balances of short-term borrowings and an increase in the average balance of noninterest-bearing demand deposit accounts, partially offset by an increase in the cost of interest-bearing deposits. The NIM on an FTE basis increased 6 bps from the third quarter of 2023 due to higher earning asset yields, the impact of acquisition-related net accretion and lower average balances of short-term borrowings, partially offset by the increase in the cost of interest-bearing deposits.
  • Earning asset yields for the three months ended September 30, 2024 increased 9 bps from the prior quarter to 5.01% and increased 38 bps from the same quarter in the prior year. Loan yields for the three months ended September 30, 2024 increased 11 bps from the prior quarter to 5.74% and increased 38 bps from the same quarter in the prior year. Average earning assets increased $79.2 million, or 0.6%, from the second quarter of 2024 due to organic loan growth. Average earning assets grew $644.2 million, or 5.5%, from the third quarter of 2023 due to organic loan growth and the Salisbury acquisition, completed in August 2023.
  • Total cost of deposits, including noninterest bearing deposits, was 1.72% for the third quarter of 2024, an increase of 4 bps from the prior quarter and an increase of 54 bps from the same period in the prior year. For the month of September 2024, the total cost of deposits was 1.72%.
  • Total cost of funds for the three months ended September 30, 2024 was 1.85%, consistent with the prior quarter and an increase of 35 bps from the third quarter of 2023. For the month of September 2024, the total cost of funds was 1.83%.

Asset Quality and Allowance for Loan Losses

  • Net charge-offs to total average loans for the third quarter of 2024 was 16 bps compared to 15 bps in the prior quarter. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter.
  • Nonperforming assets to total assets was 0.27% which was consistent with the previous three quarter ends at 0.28%.
  • Provision expense for the three months ended September 30, 2024 was $2.9 million, compared to $8.9 million for the second quarter of 2024. The decrease in provision expense from the prior quarter was primarily due to lower level of loan growth in the third quarter including the run-off of the other consumer and residential solar portfolios, the establishment of a specific reserve in the prior quarter and the stabilization of expected prepayment assumptions impacting the expected life of the loan portfolios. Included in the provision expense in the third quarter of 2023 was $8.8 million of acquisition-related provision for loan losses.
  • The allowance for loan losses was $119.5 million, or 1.21% of total loans, at September 30, 2024, compared to $120.5 million, or 1.22% of total loans, at June 30, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
  • The reserve for unfunded loan commitments was $4.6 million at September 30, 2024, compared to $4.3 million at June 30, 2024 and $5.1 million at December 31, 2023. The provision for unfunded loan commitments in the third quarter of 2023 included $0.8 million of acquisition-related provision for unfunded loan commitments.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $45.3 million for the three months ended September 30, 2024, up $2.0 million, or 4.6%, from the second quarter of 2024, and up $4.9 million, or 12.1%, from the third quarter of 2023.
  • Retirement plan administration fees were consistent with the prior quarter and increased $1.8 million from the third quarter of 2023. The increase from the third quarter of 2023 was driven by organic growth and higher market levels.
  • Wealth management fees increased $0.8 million from the prior quarter and were up $1.6 million from the third quarter of 2023. The increase from the prior quarter was driven by organic growth and seasonal activity-based fees. The increase from the third quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
  • Insurance revenues increased $1.1 million from the prior quarter driven by seasonal renewals and increased $0.6 million from the prior year due to organic growth.

Noninterest Expense

  • Total noninterest expense was $95.7 million for the third quarter of 2024, compared to $89.6 million for the second quarter of 2024 and $90.8 million for the third quarter of 2023. Excluding $0.5 million of acquisition expenses in the third quarter of 2024 and $7.9 million of acquisition expenses in the third quarter of 2023, total noninterest expense increased 6.3% compared to the previous quarter and increased 14.9% from the third quarter of 2023.
  • Salaries and benefits increased 7.7% from the prior quarter driven by one additional payroll day and an increase in other benefits including higher levels of incentive compensation. The 21.1% increase from the third quarter of 2023 was driven by the impact of the Salisbury acquisition, merit pay increases, higher levels of incentive compensation, higher medical and other benefit costs.
  • Technology and data services increased from the prior quarter primarily due to timing of planned initiatives and continued investment in digital platform solutions.
  • Occupancy costs were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses related to the Salisbury acquisition.
  • Professional fees and outside services were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses from the Salisbury acquisition and the timing of external services for several tactical and strategic initiatives.
  • Amortization of intangible assets were consistent with the second quarter of 2024 and increased $0.5 million from the third quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.

Income Taxes

  • The effective tax rate was 21.9% for the third quarter of 2024 consistent with 22.0% in the second quarter of 2024 and down from 22.4% for the third quarter of 2023.

Capital

  • Tangible common equity to tangible assets(1) was 8.36% at September 30, 2024. Tangible book value per share(2) was $23.83 at September 30, 2024, $22.54 at June 30, 2024 and $20.39 at September 30, 2023.
  • Stockholders’ equity increased $96.3 million from December 31, 2023 driven by net income generation of $104.6 million and a $35.2 million decrease in accumulated other comprehensive loss driven by the change in the fair value of securities available for sale, partially offset by dividends declared of $46.2 million.
  • September 30, 2024, CET1 capital ratio of 11.86%, leverage ratio of 10.29% and total risk-based capital ratio of 15.02%.

Dividend

  • The Board of Directors approved a fourth-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per share, or 6.3%, increase over the dividend paid in the fourth quarter of 2023. This is the Company’s twelfth consecutive year of annual dividend increases. The dividend will be paid on December 16, 2024 to stockholders of record as of December 2, 2024.

Stock Repurchase

  • The Company purchased 7,600 shares of its common stock during 2024 at an average price of $33.02 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of September 30, 2024, there were 1,992,400 shares available for repurchase under this plan.

Evans Bancorp, Inc. Merger

  • On September 9, 2024, NBT announced that it had entered into an agreement to acquire Evans Bancorp, Inc. (“Evans”), an 18 branch community bank headquartered in Williamsville, NY, in an all stock transaction. Evans had assets of $2.26 billion, deposits of $1.89 billion and net loans of $1.74 billion as of June 30, 2024. The merger is expected to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions, including approval by the shareholders of Evans and the receipt of required regulatory approvals.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, October 29, 2024, to review the third quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at www.nbtbancorp.com/bn/presentations-events.html#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 $13.84 billion at September 30, 2024. 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 155 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.nbtbank.com/Insurance.

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, including actual or potential stress in the banking industry, 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 rates, 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 the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) governmental approvals of the Evans merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (14) the shareholders of Evans may fail to approve the merger; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) 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, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) 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 and other accounting standard setters; (19) changes in the Company’s organization, compensation and benefit plans; (20) 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; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) 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: Scott A. Kingsley, President and CEO
Annette L. Burns, 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)        
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Profitability (reported)          
Diluted earnings per share $ 0.80   $ 0.69   $ 0.71   $ 0.64   $ 0.54  
Weighted average diluted common shares outstanding   47,473,417     47,382,814     47,370,145     47,356,899     45,398,937  
Return on average assets(3)   1.12 %   0.98 %   1.02 %   0.89 %   0.76 %
Return on average equity(3)   10.21 %   9.12 %   9.52 %   8.79 %   7.48 %
Return on average tangible common equity(1)(3)   14.54 %   13.23 %   13.87 %   13.08 %   10.73 %
Net interest margin(1)(3)   3.27 %   3.18 %   3.14 %   3.15 %   3.21 %
           
  9 Months Ended September 30,      
    2024     2023        
Profitability (reported)          
Diluted earnings per share $ 2.21   $ 2.01        
Weighted average diluted common shares outstanding   47,409,906     43,896,042        
Return on average assets(3)   1.04 %   0.97 %      
Return on average equity(3)   9.62 %   9.54 %      
Return on average tangible common equity(1)(3)   13.89 %   13.00 %      
Net interest margin(1)(3)   3.20 %   3.34 %      
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Profitability (operating)          
Diluted earnings per share(1) $ 0.80   $ 0.69   $ 0.68   $ 0.72   $ 0.84  
Return on average assets(1)(3)   1.12 %   0.98 %   0.97 %   0.99 %   1.19 %
Return on average equity(1)(3)   10.23 %   9.14 %   9.04 %   9.79 %   11.65 %
Return on average tangible common equity(1)(3)   14.56 %   13.26 %   13.20 %   14.49 %   16.43 %
           
  9 Months Ended September 30,      
    2024     2023        
Profitability (operating)          
Diluted earnings per share(1) $ 2.17   $ 2.53        
Return on average assets(1)(3)   1.03 %   1.22 %      
Return on average equity(1)(3)   9.48 %   11.98 %      
Return on average tangible common equity(1)(3)   13.69 %   16.25 %      
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Balance sheet data          
Short-term interest-bearing accounts $ 231,671   $ 35,207   $ 156,632   $ 31,378   $ 459,296  
Securities available for sale   1,509,338     1,439,445     1,418,471     1,430,858     1,399,032  
Securities held to maturity   854,941     878,909     890,863     905,267     914,520  
Net loans   9,787,541     9,733,847     9,572,777     9,536,313     9,552,774  
Total assets   13,839,552     13,501,909     13,439,199     13,309,040     13,827,628  
Total deposits   11,588,278     11,271,459     11,195,289     10,968,994     11,401,452  
Total borrowings   456,666     476,082     518,190     637,387     740,603  
Total liabilities   12,317,572     12,039,954     11,997,784     11,883,349     12,464,807  
Stockholders' equity   1,521,980     1,461,955     1,441,415     1,425,691     1,362,821  
           
Capital          
Equity to assets   11.00 %   10.83 %   10.73 %   10.71 %   9.86 %
Tangible equity ratio(1)   8.36 %   8.11 %   7.98 %   7.93 %   7.15 %
Book value per share $ 32.26   $ 31.00   $ 30.57   $ 30.26   $ 28.94  
Tangible book value per share(2) $ 23.83   $ 22.54   $ 22.07   $ 21.72   $ 20.39  
Leverage ratio   10.29 %   10.16 %   10.09 %   9.71 %   10.23 %
Common equity tier 1 capital ratio   11.86 %   11.70 %   11.68 %   11.57 %   11.31 %
Tier 1 capital ratio   12.77 %   12.61 %   12.61 %   12.50 %   12.23 %
Total risk-based capital ratio   15.02 %   14.88 %   14.87 %   14.75 %   14.45 %
Common stock price (end of period) $ 44.23   $ 38.60   $ 36.68   $ 41.91   $ 31.69  
           


NBT Bancorp Inc. and Subsidiaries          
Asset Quality and Consolidated Loan Balances          
(unaudited, dollars in thousands)          
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Asset quality          
Nonaccrual loans $ 33,338   $ 34,755   $ 35,189   $ 34,213   $ 20,736  
90 days past due and still accruing   3,981     3,333     2,600     3,661     3,528  
Total nonperforming loans   37,319     38,088     37,789     37,874     24,264  
Other real estate owned   127     74     -     -     -  
Total nonperforming assets   37,446     38,162     37,789     37,874     24,264  
Allowance for loan losses   119,500     120,500     115,300     114,400     114,601  
           
Asset quality ratios          
Allowance for loan losses to total loans   1.21 %   1.22 %   1.19 %   1.19 %   1.19 %
Total nonperforming loans to total loans   0.38 %   0.39 %   0.39 %   0.39 %   0.25 %
Total nonperforming assets to total assets   0.27 %   0.28 %   0.28 %   0.28 %   0.18 %
Allowance for loan losses to total nonperforming loans   320.21 %   316.37 %   305.12 %   302.05 %   472.31 %
Past due loans to total loans(4)   0.36 %   0.30 %   0.33 %   0.32 %   0.49 %
Net charge-offs to average loans(3)   0.16 %   0.15 %   0.19 %   0.22 %   0.18 %
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Loan net charge-offs by line of business          
Commercial $ 807   $ (8 ) $ 772   $ 1,107   $ (344 )
Residential real estate and home equity   (64 )   (76 )   (32 )   11     (75 )
Indirect auto   725     747     665     399     451  
Residential solar   1,599     1,610     1,211     1,081     1,253  
Other consumer   853     1,426     2,063     2,729     2,919  
Total loan net charge-offs $ 3,920   $ 3,699   $ 4,679   $ 5,327   $ 4,204  
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Allowance for loan losses as a percentage of loans by segment        
Commercial & industrial   0.73 %   0.76 %   0.79 %   0.84 %   0.87 %
Commercial real estate   1.01 %   1.00 %   0.97 %   0.99 %   1.00 %
Residential real estate   1.00 %   0.98 %   0.89 %   0.84 %   0.79 %
Auto   0.83 %   0.85 %   0.81 %   0.83 %   0.82 %
Residential solar   3.70 %   3.76 %   3.58 %   3.28 %   3.19 %
Other consumer   3.51 %   4.09 %   4.24 %   4.70 %   5.23 %
Total   1.21 %   1.22 %   1.19 %   1.19 %   1.19 %
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Loans by line of business          
Commercial & industrial $ 1,458,926   $ 1,397,935   $ 1,353,446   $ 1,354,248   $ 1,424,579  
Commercial real estate   3,792,498     3,784,214     3,646,739     3,626,910     3,575,595  
Residential real estate   2,143,766     2,134,875     2,133,289     2,125,804     2,111,670  
Home equity   328,687     326,556     328,673     337,214     340,777  
Indirect auto   1,235,175     1,225,786     1,190,734     1,130,132     1,099,558  
Residential solar   839,659     861,883     896,147     917,755     934,082  
Other consumer   108,330     123,098     139,049     158,650     181,114  
Total loans $ 9,907,041   $ 9,854,347   $ 9,688,077   $ 9,650,713   $ 9,667,375  
           


NBT Bancorp Inc. and Subsidiaries    
Consolidated Balance Sheets    
(unaudited, in thousands)    
     
  September 30, December 31,
    2024   2023  
Assets    
Cash and due from banks $ 250,788 $ 173,811  
Short-term interest-bearing accounts   231,671   31,378  
Equity securities, at fair value   41,974   37,591  
Securities available for sale, at fair value   1,509,338   1,430,858  
Securities held to maturity (fair value $781,868 and $814,524, respectively)   854,941   905,267  
Federal Reserve and Federal Home Loan Bank stock   37,732   45,861  
Loans held for sale   3,713   3,371  
Loans   9,907,041   9,650,713  
Less allowance for loan losses   119,500   114,400  
Net loans $ 9,787,541 $ 9,536,313  
Premises and equipment, net   80,133   80,675  
Goodwill   362,010   361,851  
Intangible assets, net   35,843   40,443  
Bank owned life insurance   271,178   265,732  
Other assets   372,690   395,889  
Total assets $ 13,839,552 $ 13,309,040  
     
Liabilities and stockholders' equity    
Demand (noninterest bearing) $ 3,476,218 $ 3,413,829  
Savings, NOW and money market   6,678,936   6,230,456  
Time   1,433,124   1,324,709  
Total deposits $ 11,588,278 $ 10,968,994  
Short-term borrowings   204,959   386,651  
Long-term debt   29,682   29,796  
Subordinated debt, net   120,829   119,744  
Junior subordinated debt   101,196   101,196  
Other liabilities   272,628   276,968  
Total liabilities $ 12,317,572 $ 11,883,349  
     
Total stockholders' equity $ 1,521,980 $ 1,425,691  
     
Total liabilities and stockholders' equity $ 13,839,552 $ 13,309,040  
     


NBT Bancorp Inc. and Subsidiaries        
Consolidated Statements of Income        
(unaudited, in thousands except per share data)        
         
  Three Months Ended Nine Months Ended
  September 30, September 30,
    2024   2023     2024     2023  
Interest, fee and dividend income        
Interest and fees on loans $ 141,991 $ 122,097   $ 411,743   $ 329,931  
Securities available for sale   7,815   7,495     22,501     22,604  
Securities held to maturity   5,042   5,281     15,535     15,307  
Other   1,382   2,221     4,154     4,033  
Total interest, fee and dividend income $ 156,230 $ 137,094   $ 453,933   $ 371,875  
Interest expense        
Deposits $ 49,106 $ 30,758   $ 140,133   $ 61,888  
Short-term borrowings   1,431   7,612     7,751     20,657  
Long-term debt   292   294     873     631  
Subordinated debt   1,810   1,612     5,416     4,281  
Junior subordinated debt   1,922   1,923     5,743     5,372  
Total interest expense $ 54,561 $ 42,199   $ 159,916   $ 92,829  
Net interest income $ 101,669 $ 94,895   $ 294,017   $ 279,046  
Provision for loan losses   2,920   3,883     17,398     11,398  
Provision for loan losses - acquisition day 1 non-PCD   -   8,750     -     8,750  
Total provision for loan losses $ 2,920 $ 12,633   $ 17,398   $ 20,148  
Net interest income after provision for loan losses $ 98,749 $ 82,262   $ 276,619   $ 258,898  
Noninterest income        
Service charges on deposit accounts $ 4,340 $ 3,979   $ 12,676   $ 11,260  
Card services income   5,897   5,503     16,679     15,469  
Retirement plan administration fees   14,578   12,798     43,663     35,995  
Wealth management   10,929   9,297     30,799     25,611  
Insurance services   4,913   4,361     13,149     12,008  
Bank owned life insurance income   1,868   1,568     6,054     4,974  
Net securities gains (losses)   476   (183 )   2,567     (9,822 )
Other   2,773   2,913     8,811     8,195  
Total noninterest income $ 45,774 $ 40,236   $ 134,398   $ 103,690  
Noninterest expense        
Salaries and employee benefits $ 59,641 $ 49,248   $ 170,738   $ 144,237  
Technology and data services   9,920   9,677     28,919     27,989  
Occupancy   7,754   7,090     23,523     21,233  
Professional fees and outside services   4,871   4,149     14,289     12,486  
Amortization of intangible assets   2,062   1,609     6,363     2,603  
Reserve for unfunded loan commitments   250   460     (580 )   (270 )
Acquisition expenses   543   7,917     543     9,724  
Other   10,704   10,647     33,311     30,911  
Total noninterest expense $ 95,745 $ 90,797   $ 277,106   $ 248,913  
Income before income tax expense $ 48,778 $ 31,701   $ 133,911   $ 113,675  
Income tax expense   10,681   7,095     29,275     25,339  
   Net income $ 38,097 $ 24,606   $ 104,636   $ 88,336  
Earnings Per Share        
Basic $ 0.81 $ 0.54   $ 2.22   $ 2.02  
Diluted $ 0.80 $ 0.54   $ 2.21   $ 2.01  
         


NBT Bancorp Inc. and Subsidiaries          
Quarterly Consolidated Statements of Income          
(unaudited, in thousands except per share data)          
           
    2024     2023  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Interest, fee and dividend income          
Interest and fees on loans $ 141,991 $ 136,606   $ 133,146   $ 132,738 $ 122,097  
Securities available for sale   7,815   7,562     7,124     7,208   7,495  
Securities held to maturity   5,042   5,190     5,303     5,374   5,281  
Other   1,382   1,408     1,364     5,594   2,221  
Total interest, fee and dividend income $ 156,230 $ 150,766   $ 146,937   $ 150,914 $ 137,094  
Interest expense          
Deposits $ 49,106 $ 46,688   $ 44,339   $ 42,753 $ 30,758  
Short-term borrowings   1,431   2,899     3,421     4,951   7,612  
Long-term debt   292   291     290     294   294  
Subordinated debt   1,810   1,806     1,800     1,795   1,612  
Junior subordinated debt   1,922   1,908     1,913     1,948   1,923  
Total interest expense $ 54,561 $ 53,592   $ 51,763   $ 51,741 $ 42,199  
Net interest income $ 101,669 $ 97,174   $ 95,174   $ 99,173 $ 94,895  
Provision for loan losses $ 2,920 $ 8,899   $ 5,579   $ 5,126 $ 3,883  
Provision for loan losses - acquisition day 1 non-PCD   -   -     -     -   8,750  
Total provision for loan losses $ 2,920 $ 8,899   $ 5,579   $ 5,126 $ 12,633  
Net interest income after provision for loan losses $ 98,749 $ 88,275   $ 89,595   $ 94,047 $ 82,262  
Noninterest income          
Service charges on deposit accounts $ 4,340 $ 4,219   $ 4,117   $ 4,165 $ 3,979  
Card services income   5,897   5,587     5,195     5,360   5,503  
Retirement plan administration fees   14,578   14,798     14,287     11,226   12,798  
Wealth management   10,929   10,173     9,697     9,152   9,297  
Insurance services   4,913   3,848     4,388     3,659   4,361  
Bank owned life insurance income   1,868   1,834     2,352     1,776   1,568  
Net securities gains (losses)   476   (92 )   2,183     507   (183 )
Other   2,773   2,865     3,173     2,643   2,913  
Total noninterest income $ 45,774 $ 43,232   $ 45,392   $ 38,488 $ 40,236  
Noninterest expense          
Salaries and employee benefits $ 59,641 $ 55,393   $ 55,704   $ 50,013 $ 49,248  
Technology and data services   9,920   9,249     9,750     10,174   9,677  
Occupancy   7,754   7,671     8,098     7,175   7,090  
Professional fees and outside services   4,871   4,565     4,853     5,115   4,149  
Amortization of intangible assets   2,062   2,133     2,168     2,131   1,609  
Reserve for unfunded loan commitments   250   (380 )   (450 )   300   460  
Impairment of a minority interest equity investment   -   -     -     4,750   -  
Acquisition expenses   543   -     -     254   7,917  
Other   10,704   10,957     11,650     12,839   10,647  
Total noninterest expense $ 95,745 $ 89,588   $ 91,773   $ 92,751 $ 90,797  
Income before income tax expense $ 48,778 $ 41,919   $ 43,214   $ 39,784 $ 31,701  
Income tax expense   10,681   9,203     9,391     9,338   7,095  
   Net income $ 38,097 $ 32,716   $ 33,823   $ 30,446 $ 24,606  
Earnings Per Share          
Basic $ 0.81 $ 0.69   $ 0.72   $ 0.65 $ 0.54  
Diluted $ 0.80 $ 0.69   $ 0.71   $ 0.64 $ 0.54  
           


NBT Bancorp Inc. and Subsidiaries                 
Average Quarterly Balance Sheets                 
(unaudited, dollars in thousands)                 
                       
    Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates Average Balance Yield / Rates
    Q3 - 2024 Q2 - 2024 Q1 - 2024 Q4 - 2023 Q3 - 2023
Assets                      
Short-term interest-bearing accounts   $ 62,210 4.87 % $ 48,861 5.48 % $ 47,972 4.48 % $ 319,907 5.59 % $ 121,384 4.26 %
Securities taxable(1)     2,266,930 1.99 %   2,280,767 1.97 %   2,278,029 1.91 %   2,310,409 1.88 %   2,364,809 1.90 %
Securities tax-exempt(1)(5)     217,251 3.47 %   226,032 3.56 %   230,468 3.58 %   232,575 3.51 %   219,427 3.34 %
FRB and FHLB stock     35,395 6.97 %   40,283 7.41 %   42,296 7.89 %   47,994 8.98 %   53,841 6.76 %
Loans(1)(6)     9,865,412 5.74 %   9,772,014 5.63 %   9,674,892 5.54 %   9,653,191 5.47 %   9,043,582 5.36 %
Total interest-earning assets   $ 12,447,198 5.01 % $ 12,367,957 4.92 % $ 12,273,657 4.84 % $ 12,564,076 4.79 % $ 11,803,043 4.63 %
Other assets     1,072,277     1,064,487     1,055,386     1,052,024     968,220  
Total assets   $ 13,519,475   $ 13,432,444   $ 13,329,043   $ 13,616,100   $ 12,771,263  
Liabilities and stockholders' equity                      
Money market deposit accounts   $ 3,342,845 3.68 % $ 3,254,252 3.65 % $ 3,129,160 3.56 % $ 3,045,531 3.43 % $ 2,422,451 2.91 %
NOW deposit accounts     1,600,547 0.87 %   1,603,695 0.78 %   1,600,288 0.75 %   1,645,401 0.80 %   1,513,420 0.57 %
Savings deposits     1,566,316 0.05 %   1,586,753 0.05 %   1,607,659 0.04 %   1,666,915 0.04 %   1,707,094 0.04 %
Time deposits     1,442,424 4.00 %   1,391,062 4.00 %   1,352,559 4.00 %   1,343,548 3.81 %   1,178,352 3.60 %
Total interest-bearing deposits   $ 7,952,132 2.46 % $ 7,835,762 2.40 % $ 7,689,666 2.32 % $ 7,701,395 2.20 % $ 6,821,317 1.79 %
Federal funds purchased     2,609 5.34 %   29,945 5.56 %   19,769 5.53 %   217 5.48 %   6,033 5.39 %
Repurchase agreements     98,035 2.80 %   86,405 1.55 %   82,419 1.55 %   82,387 1.59 %   71,516 1.40 %
Short-term borrowings     48,875 5.74 %   155,159 5.58 %   213,390 5.34 %   345,250 5.31 %   540,380 5.34 %
Long-term debt     29,696 3.91 %   29,734 3.94 %   29,772 3.92 %   29,809 3.91 %   29,800 3.91 %
Subordinated debt, net     120,594 5.97 %   120,239 6.04 %   119,873 6.04 %   119,531 5.96 %   109,160 5.86 %
Junior subordinated debt     101,196 7.56 %   101,196 7.58 %   101,196 7.60 %   101,196 7.64 %   101,196 7.54 %
Total interest-bearing liabilities   $ 8,353,137 2.60 % $ 8,358,440 2.58 % $ 8,256,085 2.52 % $ 8,379,785 2.45 % $ 7,679,402 2.18 %
Demand deposits     3,389,894     3,323,906     3,356,607     3,535,815     3,498,424  
Other liabilities     292,446     306,747     286,749     326,857     287,751  
Stockholders' equity     1,483,998     1,443,351     1,429,602     1,373,643     1,305,686  
Total liabilities and stockholders' equity   $ 13,519,475   $ 13,432,444   $ 13,329,043   $ 13,616,100   $ 12,771,263  
Interest rate spread     2.41 %   2.34 %   2.32 %   2.34 %   2.45 %
Net interest margin (FTE)(1)     3.27 %   3.18 %   3.14 %   3.15 %   3.21 %
                       


NBT Bancorp Inc. and Subsidiaries          
Average Year-to-Date Balance Sheets
       
(unaudited, dollars in thousands)           
               
    Average   Yield/ Average   Yield/
    Balance Interest Rates Balance Interest Rates
Nine Months Ended September 30,     2024     2023  
Assets              
Short-term interest-bearing accounts   $ 53,048   $ 1,963   4.94 % $ 61,677   $ 1,751   3.80 %
Securities taxable(1)     2,275,212     33,336   1.96 %   2,400,237     34,218   1.91 %
Securities tax-exempt(1)(5)     224,557     5,950   3.54 %   207,812     4,675   3.01 %
FRB and FHLB stock     39,310     2,191   7.45 %   48,860     2,282   6.24 %
Loans(1)(6)     9,771,118     412,448   5.64 %   8,516,793     330,314   5.19 %
Total interest-earning assets   $ 12,363,245   $ 455,888   4.93 % $ 11,235,379   $ 373,240   4.44 %
Other assets     1,064,080         880,655      
Total assets   $ 13,427,325       $ 12,116,034      
Liabilities and stockholders' equity              
Money market deposit accounts   $ 3,242,453   $ 88,185   3.63 % $ 2,207,126   $ 36,107   2.19 %
NOW deposit accounts     1,601,507     9,630   0.80 %   1,525,089     4,989   0.44 %
Savings deposits     1,586,834     541   0.05 %   1,732,205     462   0.04 %
Time deposits     1,395,520     41,777   4.00 %   893,407     20,330   3.04 %
Total interest-bearing deposits   $ 7,826,314   $ 140,133   2.39 % $ 6,357,827   $ 61,888   1.30 %
Federal funds purchased     17,387     721   5.54 %   32,784     1,266   5.16 %
Repurchase agreements     88,986     1,340   2.01 %   66,162     416   0.84 %
Short-term borrowings     138,812     5,690   5.48 %   485,804     18,975   5.22 %
Long-term debt     29,734     873   3.92 %   22,373     631   3.77 %
Subordinated debt, net     120,237     5,416   6.02 %   101,114     4,281   5.66 %
Junior subordinated debt     101,196     5,743   7.58 %   101,196     5,372   7.10 %
Total interest-bearing liabilities   $ 8,322,666   $ 159,916   2.57 % $ 7,167,260   $ 92,829   1.73 %
Demand deposits     3,356,923         3,439,275      
Other liabilities     295,303         271,307      
Stockholders' equity     1,452,433         1,238,192      
Total liabilities and stockholders' equity $ 13,427,325       $ 12,116,034      
Net interest income (FTE)(1)     $ 295,972       $ 280,411    
Interest rate spread       2.36 %     2.71 %
Net interest margin (FTE)(1)       3.20 %     3.34 %
Taxable equivalent adjustment     $ 1,955       $ 1,365    
Net interest income     $ 294,017       $ 279,046    
               


(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 except per share data)          
             
      2024     2023  
    3rd Q 2nd Q 1st Q 4th Q 3rd Q
  Operating net income          
  Net income $ 38,097   $ 32,716   $ 33,823   $ 30,446   $ 24,606  
  Acquisition expenses   543     -     -     254     7,917  
  Acquisition-related provision for credit losses   -     -     -     -     8,750  
  Acquisition-related reserve for unfunded loan commitments   -     -     -     -     836  
  Impairment of a minority interest equity investment   -     -     -     4,750     -  
  Securities (gains) losses   (476 )   92     (2,183 )   (507 )   183  
  Adjustments to net income $ 67   $ 92   $ (2,183 ) $ 4,497   $ 17,686  
  Adjustments to net income (net of tax) $ 52   $ 72   $ (1,703 ) $ 3,435   $ 13,730  
  Operating net income $ 38,149   $ 32,788   $ 32,120   $ 33,881   $ 38,336  
  Operating diluted earnings per share $ 0.80   $ 0.69   $ 0.68   $ 0.72   $ 0.84  
             
    9 Months Ended September 30,      
      2024     2023        
  Operating net income          
  Net income $ 104,636   $ 88,336        
  Acquisition expenses   543     9,724        
  Acquisition-related provision for credit losses   -     8,750        
  Acquisition-related reserve for unfunded loan commitments   -     836        
  Securities (gains) losses   (2,567 )   9,822        
  Adjustments to net income $ (2,024 ) $ 29,132        
  Adjustments to net income (net of tax) $ (1,579 ) $ 22,577        
  Operating net income $ 103,057   $ 110,913        
  Operating diluted earnings per share $ 2.17   $ 2.53        
             
      2024     2023  
    3rd Q 2nd Q 1st Q 4th Q 3rd Q
  FTE adjustment          
  Net interest income $ 101,669   $ 97,174   $ 95,174   $ 99,173   $ 94,895  
  Add: FTE adjustment   639     658     658     669     568  
  Net interest income (FTE) $ 102,308   $ 97,832   $ 95,832   $ 99,842   $ 95,463  
  Average earning assets $ 12,447,198   $ 12,367,957   $ 12,273,657   $ 12,564,076   $ 11,803,043  
  Net interest margin (FTE)(3)   3.27 %   3.18 %   3.14 %   3.15 %   3.21 %
             
    9 Months Ended September 30,      
      2024     2023        
  FTE adjustment          
  Net interest income $ 294,017   $ 279,046        
  Add: FTE adjustment   1,955     1,365        
  Net interest income (FTE) $ 295,972   $ 280,411        
  Average earning assets $ 12,363,245   $ 11,235,379        
  Net interest margin (FTE)(3)   3.20 %   3.34 %      
             
  Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.


             
(1) The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
             
  Non-GAAP measures (continued)          
  (unaudited, dollars in thousands)          
             
      2024     2023  
    3rd Q 2nd Q 1st Q 4th Q 3rd Q
  Tangible equity to tangible assets          
  Total equity $ 1,521,980   $ 1,461,955   $ 1,441,415   $ 1,425,691   $ 1,362,821  
  Intangible assets   397,853     398,686     400,819     402,294     402,745  
  Total assets $ 13,839,552   $ 13,501,909   $ 13,439,199   $ 13,309,040   $ 13,827,628  
  Tangible equity to tangible assets   8.36 %   8.11 %   7.98 %   7.93 %   7.15 %
             
      2024     2023  
    3rd Q 2nd Q 1st Q 4th Q 3rd Q
  Return on average tangible common equity        
  Net income $ 38,097   $ 32,716   $ 33,823   $ 30,446   $ 24,606  
  Amortization of intangible assets (net of tax)   1,547     1,600     1,626     1,599     1,206  
  Net income, excluding intangibles amortization $ 39,644   $ 34,316   $ 35,449   $ 32,045   $ 25,812  
             
  Average stockholders' equity $ 1,483,998   $ 1,443,351   $ 1,429,602   $ 1,373,643   $ 1,305,686  
  Less: average goodwill and other intangibles   399,113     399,968     401,756     401,978     350,912  
  Average tangible common equity $ 1,084,885   $ 1,043,383   $ 1,027,846   $ 971,665   $ 954,774  
  Return on average tangible common equity(3)   14.54 %   13.23 %   13.87 %   13.08 %   10.73 %
             
    9 Months Ended September 30,      
      2024     2023        
  Return on average tangible common equity        
  Net income $ 104,636   $ 88,336        
  Amortization of intangible assets (net of tax)   4,772     1,952        
  Net income, excluding intangibles amortization $ 109,408   $ 90,288        
             
  Average stockholders' equity $ 1,452,433   $ 1,238,192        
  Less: average goodwill and other intangibles   400,275     309,309        
  Average tangible common equity $ 1,052,158   $ 928,883        
  Return on average tangible common equity(3)   13.89 %   13.00 %      
             
(2) Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
(3) Annualized.     
(4) Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
(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.
             

This press release was published by a CLEAR® Verified individual.


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