NBT Bancorp Inc. Announces Net Income of $19.9 Million for the Third Quarter of 2015; Declares Cash Dividend

NORWICH, N.Y., Oct. 26, 2015 (GLOBE NEWSWIRE) — NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) announced net income for the three months ended September 30, 2015 was $19.9 million, up from $19.3 million for the second quarter of 2015, and up from $10.9 million for the third quarter of 2014.  Reported net income for the third quarter of 2014 included $8.8 million in prepayment penalties, net of tax, related to our long-term debt restructuring strategy.  Reported diluted earnings per share for the three months ended September 30, 2015 was $0.45, as compared with $0.43 for the prior quarter, and $0.25 per share for the third quarter of 2014. 

Core net income for the three months ended September 30, 2015 was $19.8 million, up from $19.6 million in the previous quarter, and equal to the same period last year.  Core earnings per diluted share for the three months ended September 30, 2015 was $0.45, up from $0.44 for the second quarter of 2015, and equal to the third quarter of 2014.

Reported net income for the nine months ended September 30, 2015 was $57.3 million, up from $56.6 million for the same period last year.  Reported net income for the nine months ended September 30, 2015 included a contingent gain recognized from the 2014 sale of our ownership interest in Springstone LLC (“Springstone”), offset by reorganization expenses incurred during the third quarter of 2015.  Reported net income for the nine months ended September 30, 2014 included a gain on the sale of our ownership interest in Springstone, partially offset by prepayment penalties related to our long-term debt restructuring strategy in 2014.  Reported diluted earnings per share for the nine months ended September 30, 2015 was $1.29, as compared with $1.28 for the same period in 2014.

Core net income for the nine months ended September 30, 2015 was $57.5 million, up from $57.3 million for the same period last year.  Core earnings per diluted share for the nine months ended September 30, 2015 was $1.29, equal to the same period last year.    

The third quarter and year to date reported results for 2015 and 2014 contained items which the Company considers non-core, such as gains on the sale of an equity investment, long-term debt restructuring prepayment penalties, reorganization expenses, and other items not considered core to our operations.

Third Quarter 2015 Highlights:

  • Third quarter organic loan growth (annualized) of 6.9% driven by:
    • Consumer – 14.5%
    • Residential mortgage – 7.8%
    • Commercial – 4.8%
       
  • Year to date organic loan growth (annualized) was 6.6%
     
  • Recognized contingent gain of $4.2 million during the third quarter of 2015 from the 2014 sale of our ownership interest in Springstone, which allowed us to further our branch optimization strategy taking $3.3 million in reorganization costs during the third quarter of 2015
     
  • Average demand deposits for the nine months ended September 30, 2015 were up 11.4% from the same period in 2014
     
  • Asset quality indicators remained strong:
    • Nonperforming loans to total loans was 0.79% at September 30, 2015, as compared with 0.82% at December 31, 2014
    • Past due loans to total loans was 0.63% at September 30, 2015, as compared with 0.69% at December 31, 2014
    • Annualized net charge-offs to average loans was 0.35% for the third quarter of 2015, as compared with 0.36% for the same period last year

“Our earnings remained strong through the third quarter of 2015 with both our reported and core net income at the second highest level in NBT’s history,” said NBT President and CEO Martin Dietrich. “Our focus on banking fundamentals, including organic loan growth, deposit gathering and asset quality, continues to drive our results. And, the efforts of our employees to provide customers with a full complement of financial services while constantly working to enhance the experience we deliver continues to make them our most important and sustainable asset.”

Net interest income was $64.2 million for the third quarter of 2015, up $1.6 million from the previous quarter, and up $0.5 million from the third quarter of 2014.  FTE net interest margin was 3.48% for the three months ended September 30, 2015, down from 3.51% for the previous quarter and down from 3.61% for the third quarter of 2014.  Average interest earning assets were up $159.1 million, or 2.2%, for the third quarter of 2015 as compared to the prior quarter, and up $304.0 million, or 4.3%, from the same period in 2014.  The increase from the second quarter of 2015 was driven primarily by organic loan production.  Annualized organic loan growth of 6.9% during the third quarter of 2015 was driven by growth in most portfolios.  Yields on earning assets decreased by 2 basis points (“bps”) from 3.79% during the second quarter of 2015 to 3.77% for the third quarter of 2015.  This decrease in yield was more than offset by the growth in earning assets during the third quarter of 2015, and resulted in the 2.6% growth in interest income for the third quarter of 2015 as compared to the prior quarter.  The yield compression was driven primarily by a 3 bp decrease in loan yields from the second quarter of 2015 to the third quarter of 2015.  Average interest bearing liabilities increased $77.5 million, or 1.5%, from the second quarter of 2015 to the third quarter of 2015, which was driven by an increase in short-term borrowings for the third quarter of 2015 due to seasonality of deposits.  The rates paid on interest bearing liabilities increased 1 bp from the second quarter of 2015 to the third quarter of 2015 and contributed to the 4.2% increase in interest expense for the third quarter of 2015 as compared with the prior quarter.       

Net interest income was $189.1 million for the nine months ended September 30, 2015, up $1.2 million from the same period in 2014.  FTE net interest margin was 3.53% for the nine months ended September 30, 2015, down from 3.61% for the nine months ended September 30, 2014.  Average interest earning assets were up $208.2 million, or 3.0%, for the nine months ended September 30, 2015 as compared to the same period in 2014.  This increase from last year was driven primarily by 6.6% annualized organic loan growth during the first nine months of 2015.  Yields on earning assets decreased from 3.95% during the first nine months of 2014 to 3.81% for the first nine months of 2015, more than offsetting the growth in earning assets resulting in a 0.6% decrease in interest income for the nine months ended September 30, 2015 as compared to the same period in 2014.  The yield compression was driven by a 17 bp decrease in loan yields from the first nine months of 2014 to the first nine months of 2015.  Average interest bearing liabilities decreased $11.6 million, or 0.2%, from the nine months ended September 30, 2014 to the nine months ended September 30, 2015.  Total average deposits increased $369.0 million, or 6.1%, for the nine months ended September 30, 2015 as compared to the same period last year driven primarily by an 11.4% increase in non-interest bearing demand deposits, as well as increases in money market deposit accounts and savings deposits in the first nine months of 2015.  This increase was partially offset by a decrease in average long-term borrowings of $125.3 million for the nine months ended September 30, 2015 as compared to the same period last year due to the debt restructuring strategy completed during the third quarter of 2014.  In addition, average short-term borrowings decreased $67.9 million for the nine months ended September 30, 2015 as compared to the same period last year driven by deposit growth.  The rates paid on interest bearing liabilities decreased by 6 bps for the nine months ended September 30, 2015 as compared to the same period in 2014.  This decrease resulted primarily from a shift in deposits into lower cost core deposits as well as the aforementioned debt restructuring.     

Noninterest income for the three months ended September 30, 2015 was $31.3 million, up $3.0 million from the prior quarter, and up $4.6 million from the third quarter of 2014.  Excluding the contingent gain recognized totaling $4.2 in the third quarter of 2015 from the 2014 sale of Springstone and securities gains, noninterest income for the three months ended September 30, 2015 was $27.1 million, down $1.1 million from the prior quarter, and up $0.4 million from the third quarter of 2014.  The decrease from the prior quarter was driven primarily by a decrease in trust revenue, which was down $0.6 million due primarily to seasonality. 

Noninterest income for the nine months ended September 30, 2015 was $86.0 million, down $13.0 million from the same period last year.   Excluding the gains recorded in both periods from the 2014 sale of Springstone, securities gains, and other items not considered core to our operations, noninterest income for the nine months ended September 30, 2015 was $81.8 million, up $2.9 million, or 3.7% from the same period last year.  The increase from the prior year was driven primarily by increases in retirement plan administration fees, ATM and debit card fees, and other noninterest income.  Retirement plan administration fees were up $0.8 million, or 9.2%, for the nine months ended September 30, 2015 as compared to the same period in 2014 due primarily to new business generation.  ATM and debit card fees were up $0.8 million, or 6.5%, for the nine months ended September 30, 2015 as compared to the same period last year due primarily to an increase in debit card activity.    Other noninterest income was up $1.5 million, or 19.1%, for the nine months ended September 30, 2015 as compared to the same period in 2014 due primarily to the acquired loan charge-off recoveries recognized in 2015. 

Noninterest expense for the three months ended September 30, 2015 was $59.9 million, up $1.9 million from the prior quarter and down $9.2 million from the third quarter of 2014.  Excluding reorganization expenses incurred in the second and third quarters of 2015, prepayment penalties incurred in the third quarter of 2014, and other items not considered core to our operations, noninterest expense was down $0.9 million from the prior quarter and up $1.0 million from the third quarter of 2014.  The decrease from the prior quarter was due primarily to a $0.6 million, or 2.0%, decrease in salaries and employee benefits in the third quarter of 2015, driven by a decrease in medical expenses incurred.  Income tax expense for the three month period ended September 30, 2015 was $10.8 million, up $1.0 million from the prior quarter, and up $5.2 million from the third quarter of 2014, which included the impact of the aforementioned non-core items.  The increase from the prior period was due primarily to a higher level of taxable income for the third quarter of 2015.  The effective tax rate was 35.2% for the third quarter of 2015 as compared with 33.6% for the second quarter of 2015, and 33.8% for the third quarter of 2014. 

Noninterest expense for the nine months ended September 30, 2015 was $175.6 million, down $13.8 million or 7.3% from the same period in 2014, due primarily to $17.9 million in prepayment penalties from long-term, debt restructuring in 2014.  Excluding non-core items including these prepayment penalties, reorganization expenses, and other items not considered core to our operations, noninterest expense was up $3.8 million, or 2.2%, for the first nine months of 2015 as compared to the same period last year.  Salaries and employee benefits were up $1.6 million, or 1.8% for the nine months ended September 30, 2015 as compared with the same period in 2014.  Excluding incentive compensation expenses recorded in 2014 related to the Springstone sale, salaries and employee benefits were up $4.1 million, or 4.7%, from the first nine months of 2014 to the first nine months of 2015.  This increase was driven by higher post-retirement costs, higher medical expenses, and an increase in salaries expense.  This increase in salaries and employee benefits was partially offset by a $1.0 million decrease in loan collection and other real estate owned expenses for the nine months ended September 30, 2015 as compared to the same period last year.  This decrease was due primarily to gains on sales of real estate recorded in the second quarter of 2015, which offset expenses during the period.  Income tax expense for the nine month period ended September 30, 2015 was $29.7 million, up $1.4 million from the same period in 2014.  The effective tax rate was 34.2% for the first nine months of 2015 as compared to 33.4% for the first nine months of 2014.

Asset Quality

Net charge-offs were $5.1 million for the three months ended September 30, 2015, up from $4.3 million for the prior quarter, and equal to the third quarter of 2014.  Provision expense was $5.0 million for the three months ended September 30, 2015, as compared with $3.9 million for the prior quarter, and $4.9 million for the third quarter of 2014.  Annualized net charge-offs to average loans for the third quarter of 2015 was 0.35%, compared with 0.30% for the second quarter of 2015 and 0.36% for the third quarter of 2014.

Nonperforming loans to total loans was 0.79% at September 30, 2015, up slightly from 0.77% for the prior quarter, and down 3 bps from December 31, 2014.  Past due loans as a percentage of total loans were 0.63% at September 30, 2015 as compared to 0.61% as of June 30, 2015 and 0.69% at December 31, 2014.   

The allowance for loan losses totaled $64.9 million at September 30, 2015, compared to $65.0 million at June 30, 2015, and $66.4 million at December 31, 2014.  The allowance for loan losses as a percentage of loans was 1.10% (1.21% excluding acquired loans with no related allowance recorded) at September 30, 2015, compared to 1.13% (1.24% excluding acquired loans with no related allowance recorded) at June 30, 2015 and 1.19% (1.36% excluding acquired loans with no related allowance recorded) at December 31, 2014.  The decrease in the allowance for loan losses as a percentage of loans from prior periods was due primarily to continued positive trends in asset quality metrics of the originated loan portfolio.       

Balance Sheet

Total assets were $8.2 billion at September 30, 2015, up $363.6 million, or 4.7% from December 31, 2014.  Loans were $5.9 billion at September 30, 2015, up $275.7 million, or 4.9%, from December 31, 2014.  Total deposits were $6.6 billion at September 30, 2015, up $301.0 million, or 4.8%, from December 31, 2014.  Stockholders’ equity was $876.2 million, representing a total equity-to-total assets ratio of 10.74% at September 30, 2015, compared with $864.2 million or a total equity-to-total assets ratio of 11.08% at December 31, 2014.

Stock Repurchase Program

The Company purchased 1,047,152 shares of its common stock during the nine months ended September 30, 2015 at an average price of $25.59 per share under previously announced plans.  As of September 30, 2015, there were 952,848 shares available for repurchase under the repurchase plan that was announced on July 27, 2015, which expires on December 31, 2016. 

Dividend

The NBT Board of Directors approved a 2015 fourth-quarter cash dividend of $0.22 per share at a meeting held today.  The dividend will be paid on December 15, 2015 to shareholders of record as of December 1, 2015.  

Subsequent Event

On October 1, 2015, NBT Bank, N.A. acquired Third Party Administrators, Inc. (TPA, Inc.), a retirement plan services company located in Bedford, N.H. with assets under administration of over $850 million. TPA, Inc. provides administrative services for 401(k), profit sharing and defined benefit plans for over 700 businesses as well as Section 125 administration. “The addition of TPA, Inc. to our family of companies supports our strategy of enhancing our revenue from non-banking sources,” said NBT President and CEO Martin Dietrich. “The services offered by TPA, Inc. are a great complement to the retirement plan services offered by NBT Bank’s Wealth Management Division and the 401(k) recordkeeping services offered by EPIC Advisors, and we look forward to exploring the synergies between these lines of business.”

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.2 billion at September 30, 2015.  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 over 155 banking locations with offices in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtmang.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, that could cause actual conditions, events or results to differ significantly from those described in 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) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation.  Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

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).  These measures adjust GAAP measures to exclude the effects of sales of securities and certain non-recurring and merger-related expenses.  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 provided useful information that is important to an understanding of the operating results of NBT’s core business (due to the non-recurring nature of the excluded items).  Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

NBT Bancorp Inc. and Subsidiaries   
SELECTED FINANCIAL DATA   
(unaudited, dollars in thousands except per share data)   
             
    2015     2014    
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Reconciliation of Non-GAAP Financial Measures:            
Reported net income (GAAP) $ 19,851   $ 19,281   $ 18,166   $ 18,513   $ 10,912    
Noninterest income adjustments:            
  Gain on sale of securities     (3 )     (26 )     (14 )     (33 )     (38 )  
  Gain on sale of Springstone     (4,179 )     –        –        –        –     
Noninterest expense adjustments:            
  Prepayment penalties related to debt restructuring     –        –        –        –        13,348    
  Other adjustments(1)      3,290       489       –        17       126    
Tax provision adjustment     753       –        –        –        –     
Total adjustments     (139 )     463       (14 )     (16 )     13,436    
Total adjustments, net of tax     (92 )     307       (9 )     (11 )     8,891    
Core net income $ 19,759   $ 19,588   $ 18,157   $ 18,502   $ 19,803    
             
Profitability:            
Core Diluted Earnings Per Share $ 0.45   $ 0.44   $ 0.41   $ 0.42   $ 0.45    
Diluted Earnings Per Share $ 0.45   $ 0.43   $ 0.41   $ 0.42   $ 0.25    
Weighted Average Diluted             
  Common Shares Outstanding   44,262,426     44,530,123     44,641,913     44,535,274     44,405,357    
Core Return on Average Assets (2)   0.97 %   0.99 %   0.94 %   0.94 %   1.01 %  
Return on Average Assets (2)   0.97 %   0.97 %   0.94 %   0.94 %   0.55 %  
Core Return on Average Equity (2)   8.93 %   8.95 %   8.45 %   8.45 %   9.19 %  
Return on Average Equity (2)   8.97 %   8.81 %   8.46 %   8.46 %   5.06 %  
Core Return on Average Tangible Common Equity (2)(4)   13.60 %   13.67 %   13.07 %   13.08 %   14.35 %  
Return on Average Tangible Common Equity (2)(4)   13.66 %   13.47 %   13.08 %   13.09 %   8.15 %  
Net Interest Margin (2)(3)   3.48 %   3.51 %   3.60 %   3.61 %   3.61 %  
             
Nine Months Ended September 30,            
           
Reconciliation of Non-GAAP Financial Measures:   2015     2014    
Reported net income (GAAP) $ 57,298   $ 56,561    
Noninterest income adjustments:            
  Gain on sale of securities     (43 )     (59 )  
  Gain on sale of Springstone     (4,179 )     (19,401 )        
  Other adjustments(6)      –        (632 )        
Noninterest expense adjustments:            
  Prepayment penalties related to debt restructuring     –        17,902          
  Other adjustments(7)      3,779       3,418    
Tax provision adjustment     753       –           
Total adjustments     310       1,228    
Total adjustments, net of tax     206       749          
Core net income $ 57,504   $ 57,310    
       
Profitability:      
Core Diluted Earnings Per Share $ 1.29   $ 1.29    
Diluted Earnings Per Share $ 1.29   $ 1.28    
Weighted Average Diluted             
  Common Shares Outstanding   44,467,881     44,353,318    
Core Return on Average Assets (2)   0.97 %   0.99 %  
Return on Average Assets (2)   0.96 %   0.98 %  
Core Return on Average Equity (2)   8.78 %   9.09 %  
Return on Average Equity (2)   8.75 %   8.97 %  
Core Return on Average Tangible Common Equity (2)(5)   13.45 %   14.36 %  
Return on Average Tangible Common Equity (2)(5)   13.41 %   14.18 %  
Net Interest Margin (2)(3)   3.53 %   3.61 %  
             
(1) Primarily reorganization expenses for 2014 and 2015.   
(2)  Annualized   
(3)  Calculated on a Fully Tax Equivalent (“FTE”) basis   
(4)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:   
             
             
    2015     2014    
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Average stockholders’ equity $   878,305   $   878,164   $   871,074   $   868,634   $   855,164    
Less: average goodwill and other intangibles     281,048       282,272       283,508       284,743       285,993    
Average tangible common equity $   597,257   $   595,892   $   587,566   $   583,891   $   569,171    
             
(5)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:   
             
  9 Months ended September 30,        
    2015     2014          
Average stockholders’ equity $   875,875   $   843,005          
Less: average goodwill and other intangibles     282,267       287,778          
Average tangible common equity $   593,608   $   555,227        
             
(6)  Primarily settlement of litigation for 2014.   
(7)  Primarily incentive compensation related to sale of Springstone and settlement of litigation for 2014 and reorganization expenses for 2014 and 2015.  
             
Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.   

 

NBT Bancorp Inc. and Subsidiaries   
SELECTED FINANCIAL DATA   
(unaudited, dollars in thousands except per share data)   
             
             
    2015     2014    
  3rd Q 2nd Q 1st Q 4th Q 3rd Q  
Balance Sheet Data:            
Securities Available for Sale $ 1,058,397   $ 1,129,249   $ 1,071,654   $ 1,013,171   $ 1,044,502    
Securities Held to Maturity     470,758       454,312       456,773       454,361       459,620    
Net Loans     5,806,129       5,705,929       5,557,664       5,528,912       5,517,757    
Total Assets     8,161,562       8,072,485       7,863,861       7,797,926       7,867,031    
Total Deposits     6,600,627       6,371,479       6,479,437       6,299,605       6,314,939    
Total Borrowings     594,163       743,893       425,143       548,943       607,889    
Total Liabilities     7,285,346       7,196,514       6,986,367       6,933,745       7,009,591    
Stockholders’ Equity     876,216       875,971       877,494       864,181       857,440    
             
Asset Quality:            
Nonaccrual Loans $ 42,524   $ 42,286   $ 45,053   $ 41,074   $ 50,531    
90 Days Past Due and Still Accruing     3,790       1,994       2,601       4,941       4,022    
Total Nonperforming Loans     46,314       44,280       47,654       46,015       54,553    
Other Real Estate Owned     4,855       4,649       4,387       3,964       1,497    
Total Nonperforming Assets     51,169       48,929       52,041       49,979       56,050    
Allowance for Loan Losses     64,859       64,959       65,359       66,359       69,334    
             
Asset Quality Ratios (Total):            
Allowance for Loan Losses to Total Loans   1.10 %   1.13 %   1.16 %   1.19 %   1.24 %  
Total Nonperforming Loans to Total Loans   0.79 %   0.77 %   0.85 %   0.82 %   0.98 %  
Total Nonperforming Assets to Total Assets   0.63 %   0.61 %   0.66 %   0.64 %   0.71 %  
Allowance for Loan Losses to Total Nonperforming Loans   140.04 %   146.70 %   137.15 %   144.21 %   127.09 %  
Past Due Loans to Total Loans   0.63 %   0.61 %   0.54 %   0.69 %   0.65 %  
Net Charge-Offs to Average Loans (3)   0.35 %   0.30 %   0.34 %   0.70 %   0.36 %  
             
Asset Quality Ratios (Originated) (1):            
Allowance for Loan Losses to Loans   1.21 %   1.24 %   1.29 %   1.36 %   1.38 %  
Nonperforming Loans to Loans   0.63 %   0.59 %   0.69 %   0.72 %   0.83 %  
Allowance for Loan Losses to Nonperforming Loans   192.49 %   208.99 %   188.68 %   187.88 %   166.69 %  
Past Due Loans to Loans   0.67 %   0.64 %   0.56 %   0.73 %   0.70 %  
             
Capital:            
Equity to Assets   10.74 %   10.85 %   11.16 %   11.08 %   10.90 %  
Book Value Per Share $ 20.29   $ 20.05   $ 19.95   $ 19.69   $ 19.62    
Tangible Book Value Per Share (2) $ 13.80   $ 13.61   $ 13.52   $ 13.22   $ 13.09    
Tier 1 Leverage Ratio   9.34 %   9.57 %   9.72 %   9.39 %   9.20 %  
Common Equity Tier 1 Capital Ratio   10.04 %   10.22 %   10.46 %   N/A     N/A    
Tier 1 Capital Ratio   11.57 %   11.78 %   12.05 %   12.32 %   11.94 %  
Total Risk-Based Capital Ratio   12.62 %   12.84 %   13.15 %   13.50 %   13.16 %  
Common Stock Price (End of Period) $ 26.94   $ 26.17   $ 25.06   $ 26.27   $ 22.52    
             
(1)  Excludes acquired loans   
(2)  Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding   
(3)  Annualized   
             

 

NBT Bancorp Inc. and Subsidiaries
 
CONSOLIDATED BALANCE SHEETS
 
(unaudited, dollars in thousands)   
       
  September 30, December 31,  
ASSETS   2015       2014    
Cash and due from banks $    175,036     $   139,635    
Short term interest bearing accounts     9,964         7,001    
Securities available for sale, at fair value      1,058,397         1,013,171    
Securities held to maturity (fair value of $475,436 and $454,994 at     470,758         454,361    
  September 30, 2015 and December 31, 2014, respectively)      
Trading securities     7,900         7,793    
Federal Reserve and Federal Home Loan Bank stock     34,001         32,626    
Loans     5,870,988         5,595,271    
Less allowance for loan losses     64,859         66,359    
  Net loans    5,806,129       5,528,912    
Premises and equipment, net     87,763         89,258    
Goodwill     263,634         263,634    
Intangible assets, net     16,729         20,317    
Bank owned life insurance     116,128         114,251    
Other assets     115,123         126,967    
TOTAL ASSETS $    8,161,562     $    7,797,926    
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Deposits:      
 Demand (noninterest bearing) $    1,915,482     $   1,838,622    
 Savings, NOW, and money market     3,753,179         3,417,160    
 Time     931,966         1,043,823    
  Total deposits   6,600,627       6,299,605    
Short-term borrowings     362,332         316,802    
Long-term debt     130,635         130,945    
Junior subordinated debt     101,196         101,196    
Other liabilities     90,556         85,197    
  Total liabilities   7,285,346       6,933,745    
       
Total stockholders’ equity     876,216         864,181    
       
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $    8,161,562     $    7,797,926    
       

 

NBT Bancorp Inc. and Subsidiaries    
CONSOLIDATED STATEMENTS OF INCOME   
(unaudited, dollars in thousands except per share data)   
             
  Three Months Ended   Nine Months Ended  
  September 30,   September 30,  
    2015     2014       2015     2014    
Interest, fee and dividend income:            
Loans $    61,656   $   61,173     $    181,047   $   181,747    
Securities available for sale   5,125       6,095         15,214       19,464    
Securities held to maturity   2,318       1,353         6,916       2,904    
Other   401       513         1,276       1,552    
  Total interest, fee and dividend income     69,500       69,134         204,453       205,667    
Interest expense:            
Deposits   3,554       3,498         10,644       9,782    
Short-term borrowings   296       262         561       702    
Long-term debt   845       1,067         2,507       5,709    
Junior subordinated debt   560       544         1,645       1,620    
  Total interest expense     5,255       5,371         15,357       17,813    
Net interest income     64,245       63,763         189,096       187,854    
Provision for loan losses   4,966       4,885         12,506       12,647    
  Net interest income after provision for loan losses     59,279       58,878         176,590       175,207    
Noninterest income:            
Insurance and other financial services revenue   5,862       6,179         18,072       18,510    
Service charges on deposit accounts   4,349       4,519         12,706       13,285    
ATM and debit card fees   4,780       4,440         13,707       12,869    
Retirement plan administration fees   3,249       3,272         10,011       9,167    
Trust   4,611       4,758         14,257       14,157    
Bank owned life insurance income   931       1,095         3,418       3,455    
Net securities gains   3       38         43       59    
Gain on the sale of Springstone investment     4,179       –          4,179       19,401    
Other   3,297       2,376         9,617       8,078    
  Total noninterest income     31,261       26,677         86,010       98,981    
Noninterest expense:            
Salaries and employee benefits   30,227       28,933         91,240       89,609    
Occupancy   5,326       5,211         16,804       16,872    
Data processing and communications   4,207       4,029         12,598       12,045    
Professional fees and outside services   3,137       3,695         10,029       10,862    
Equipment   3,352       3,199         9,917       9,447    
Office supplies and postage   1,576       1,733         4,822       5,221    
FDIC expenses     1,355       1,135         3,833       3,642    
Advertising    421       403         1,874       1,868    
Amortization of intangible assets   1,165       1,275         3,636       3,821    
Loan collection and other real estate owned   699       705         1,593       2,546    
Prepayment penalties on long-term debt             13,348                 17,902    
Other operating   8,426       5,401         19,211       15,485    
  Total noninterest expense   59,891     69,067       175,557     189,320    
Income before income taxes   30,649     16,488       87,043     84,868    
Income taxes   10,798       5,576         29,745       28,307    
  Net income $    19,851   $   10,912     $    57,298   $   56,561    
Earnings Per Share:            
  Basic $    0.45   $   0.25     $    1.30   $   1.29    
  Diluted $    0.45   $   0.25     $    1.29   $   1.28    
             

NBT Bancorp Inc. and Subsidiaries 
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME 
(unaudited, dollars in thousands except per share data) 
           
    2015     2014  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Interest, fee and dividend income:          
Loans $   61,656   $   59,873   $   59,518   $   61,577   $   61,173  
Securities available for sale   5,125     5,144     4,945     5,000     6,095  
Securities held to maturity   2,318     2,315     2,283     2,357     1,353  
Other   401     395     480     480     513  
  Total interest, fee and dividend income   69,500     67,727     67,226     69,414     69,134  
Interest expense:          
Deposits   3,554     3,517     3,573     3,856     3,498  
Short-term borrowings   296     144     121     143     262  
Long-term debt   845     836     826     846     1,067  
Junior subordinated debt   560     545     540     545     544  
  Total interest expense   5,255     5,042     5,060     5,390     5,371  
Net interest income   64,245     62,685     62,166     64,024     63,763  
Provision for loan losses   4,966     3,898     3,642     6,892     4,885  
  Net interest income after provision for loan losses   59,279     58,787     58,524     57,132     58,878  
Noninterest income:          
Insurance and other financial services revenue   5,862     5,836     6,374     6,007     6,179  
Service charges on deposit accounts   4,349     4,285     4,072     4,656     4,519  
ATM and debit card fees   4,780     4,679     4,248     4,266     4,440  
Retirement plan administration fees   3,249     3,566     3,196     2,962     3,272  
Trust    4,611     5,196     4,450     4,793     4,758  
Bank owned life insurance income   931     928     1,559     1,894     1,095  
Net securities gains   3     26     14     33     38  
Gain on the sale of Springstone investment     4,179       –        –        –        –   
Other   3,297     3,699     2,621     2,435     2,376  
  Total noninterest income   31,261     28,215     26,534     27,046     26,677  
Noninterest expense:          
Salaries and employee benefits   30,227     30,831     30,182     30,058     28,933  
Occupancy   5,326     5,412     6,066     5,256     5,211  
Data processing and communications   4,207     4,288     4,103     4,092     4,029  
Professional fees and outside services   3,137     3,395     3,497     3,564     3,695  
Equipment   3,352     3,316     3,249     3,211     3,199  
Office supplies and postage   1,576     1,627     1,619     1,762     1,733  
FDIC expenses   1,355     1,280     1,198     1,302     1,135  
Advertising   421     734     719     963     403  
Amortization of intangible assets   1,165     1,187     1,284     1,226     1,275  
Loan collection and other real estate owned   699     22     872     702     705  
Prepayment penalties on long-term debt     –        –        –        –        13,348  
Other operating   8,426     5,872     4,913     4,607     5,401  
  Total noninterest expense   59,891     57,964     57,702     56,743     69,067  
Income before income taxes   30,649     29,038     27,356     27,435     16,488  
Income taxes   10,798     9,757     9,190     8,922     5,576  
  Net income  $   19,851   $   19,281   $   18,166   $   18,513   $   10,912  
Earnings per share:          
  Basic $   0.45   $   0.44   $   0.41   $   0.42   $   0.25  
  Diluted $   0.45   $   0.43   $   0.41   $   0.42   $   0.25  
 
Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.

  

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 – 2015 Q2 – 2015 Q1 – 2015 Q4 – 2014 Q3 – 2014
ASSETS:                    
Short-term interest bearing accounts $    8,100     0.32 % $   9,854     0.36 % $   9,156     0.30 % $   5,895     0.51 % $   4,791     0.54 %
Securities available for sale (1)(2)     1,079,206     1.92 %     1,067,619     1.98 %     1,018,880     2.02 %     1,018,505     2.00 %     1,263,375     2.01 %
Securities held to maturity (1)      460,252     2.44 %     452,948     2.49 %     454,957     2.47 %     458,038     2.45 %     234,403     2.84 %
Investment in FRB and FHLB Banks     37,358     4.19 %     31,564     4.90 %     30,931     6.20 %     31,274     6.01 %     39,459     5.06 %
Loans (3)     5,824,311     4.21 %     5,688,159     4.24 %     5,586,942     4.33 %     5,603,268     4.37 %     5,563,206     4.38 %
 Total interest earning assets $   7,409,227     3.77 % $   7,250,144     3.79 % $   7,100,866     3.89 % $   7,116,980     3.92 % $   7,105,234     3.91 %
Other assets     690,768         685,523         696,091         709,955         697,814    
Total assets $   8,099,995     $   7,935,667     $   7,796,957     $   7,826,935     $   7,803,048    
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY:                    
Money market deposit accounts $ 1,557,651     0.22 % $ 1,598,898     0.20 % $ 1,544,488     0.21 % $ 1,524,881     0.20 % $ 1,452,287     0.19 %
NOW deposit accounts     963,744     0.05 %     974,504     0.05 %     972,263     0.05 %     978,527     0.05 %     927,026     0.05 %
Savings deposits     1,085,680     0.06 %     1,080,954     0.06 %     1,040,031     0.06 %     1,017,300     0.08 %     1,025,795     0.07 %
Time deposits     939,542     1.01 %     968,714     1.00 %     1,014,904     1.00 %     1,058,615     1.03 %     1,032,370     0.96 %
  Total interest bearing deposits $   4,546,617     0.31 % $   4,623,070     0.31 % $   4,571,686     0.32 % $   4,579,323     0.33 % $   4,437,478     0.31 %
Short-term borrowings     456,663     0.26 %     302,693     0.19 %     265,420     0.19 %     299,981     0.19 %     447,761     0.23 %
Junior subordinated debentures     101,196     2.20 %     101,196     2.16 %     101,196     2.16 %     101,196     2.13 %     101,196     2.13 %
Long-term debt     130,680     2.56 %     130,743     2.56 %     130,879     2.56 %     131,000     2.56 %     170,223     2.49 %
  Total interest bearing liabilities $   5,235,156     0.40 % $   5,157,702     0.39 % $   5,069,181     0.40 % $   5,111,500     0.42 % $   5,156,658     0.41 %
Demand deposits     1,894,555         1,815,705         1,770,703         1,759,482         1,708,632    
Other liabilities     91,979         84,096         85,999         87,319         82,594    
Stockholders’ equity     878,305         878,164         871,074         868,634         855,164    
Total liabilities and stockholders’ equity $   8,099,995     $   7,935,667     $   7,796,957     $   7,826,935     $   7,803,048    
                     
Interest rate spread     3.37 %     3.40 %     3.49 %     3.50 %     3.50 %
Net interest margin     3.48 %     3.51 %     3.60 %     3.61 %     3.61 %
                     
(1) Securities are shown at average amortized cost 
(2) Excluding unrealized gains or losses 
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding 
*  Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35% 
                     

 

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,    2015     2014  
ASSETS:            
Short-term interest bearing accounts $ 9,033   $ 22     0.33 % $ 3,821   $ 21     0.73 %
Securities available for sale (1)(2)     1,055,456       15,579     1.97 %     1,340,044       20,614     2.06 %
Securities held to maturity (1)      456,072       8,415     2.47 %     157,784       3,727     3.16 %
Investment in FRB and FHLB Banks     33,308       1,254     5.03 %     41,992       1,531     4.88 %
Loans (3)     5,700,673       181,619     4.26 %     5,502,656       182,383     4.43 %
 Total interest earning assets $    7,254,542   $    206,889     3.81 % $   7,046,297   $   208,276     3.95 %
Other assets     690,774           685,861      
Total assets $    7,945,316       $   7,732,158      
             
LIABILITIES AND STOCKHOLDERS’ EQUITY:            
Money market deposit accounts $ 1,567,060       2,462     0.21 % $ 1,435,155       1,748     0.16 %
NOW deposit accounts     970,139       375     0.05 %     940,064       384     0.05 %
Savings deposits     1,069,056       492     0.06 %     1,022,212       551     0.07 %
Time deposits     974,110       7,315     1.00 %     1,001,301       7,099     0.95 %
  Total interest bearing deposits $    4,580,365   $    10,644     0.31 % $   4,398,732   $   9,782     0.30 %
Short-term borrowings     342,293       561     0.22 %     410,242       702     0.23 %
Trust preferred debentures     101,196       1,645     2.17 %     101,196       1,620     2.14 %
Long-term debt     130,767       2,507     2.56 %     256,084       5,709     2.98 %
  Total interest bearing liabilities $    5,154,621   $    15,357     0.40 % $   5,166,254   $   17,813     0.46 %
Demand deposits     1,827,441           1,640,097      
Other liabilities     87,380           82,802      
Stockholders’ equity     875,874           843,005      
Total liabilities and stockholders’ equity $    7,945,316       $   7,732,158      
  Net interest income (FTE)       191,532           190,463    
Interest rate spread       3.41 %       3.49 %
Net interest margin       3.53 %       3.61 %
Taxable equivalent adjustment        2,436           2,609    
Net interest income   $    189,096       $   187,854    
             
(1) Securities are shown at average amortized cost 
(2) Excluding unrealized gains or losses 
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding 
*  Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35%

 

NBT Bancorp Inc. and Subsidiaries 
CONSOLIDATED LOAN BALANCES
(unaudited, dollars in thousands) 
           
           
    2015     2014  
  3rd Q 2nd Q 1st Q 4th Q 3rd Q
Residential real estate mortgages $   1,177,195   $   1,154,416   $   1,125,886   $   1,115,715   $   1,099,912  
Commercial     1,167,007       1,147,586       1,140,114       1,144,761       1,179,616  
Commercial real estate     1,435,378       1,423,489       1,349,940       1,334,984       1,284,775  
Consumer     1,549,844       1,495,160       1,452,070       1,430,216       1,441,629  
Home equity     541,564       550,237       555,013       569,595       581,159  
 Total loans $   5,870,988   $   5,770,888   $   5,623,023   $   5,595,271   $   5,587,091  
           

 

 

CONTACT: Contact:
Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119