NBT Bancorp Inc. Announces Second Quarter 2024 Results and Approves a 6.3% Cash Dividend Increase

NORWICH, N.Y., July 22, 2024 (GLOBE NEWSWIRE) — NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and six months ended June 30, 2024.

Net income for the three months ended June 30, 2024 was $32.7 million, or $0.69 per diluted common share, compared to $30.1 million, or $0.70 per diluted common share, for the three months ended June 30, 2023, and $33.8 million, or $0.71 per diluted common share, for the first quarter of 2024. Operating diluted earnings per share1, a non-GAAP measure, which excludes acquisition expenses and securities gains (losses), net of tax, was $0.69 for the second quarter of 2024, compared to $0.80 for the second quarter of 2023 and $0.68 for the first quarter of 2024.

CEO Comments

“Our operating performance for the second quarter and first half of 2024 continues to reflect the strength of our balance sheet, our diversified business model, and the collaboration of our team,” said NBT President and CEO Scott A. Kingsley. “During the second quarter, we grew loans $166 million across our footprint and improved our net interest margin incrementally. Noninterest income continued to be a core strength, making up 31% of total revenues for the second quarter. We are also pleased to announce the Board of Directors approved a third quarter cash dividend of $0.34, an increase in the quarterly cash dividend of 6.3%. This is our twelfth consecutive year of annual dividend increases, demonstrating our commitment to providing consistent and favorable long-term returns to our shareholders.”

Second Quarter 2024 Financial Highlights

Net Income
  • Net income of $32.7 million and diluted earnings per share of $0.69
Net Interest Income / NIM
  • Net interest income on a fully taxable equivalent (“FTE”) basis was $97.8 million, up $2 million from the prior quarter1
  • Net interest margin (“NIM”) on an FTE basis was 3.18%1, up 4 basis points (“bps”) from the prior quarter
  • Included in FTE net interest income was $2.6 million of acquisition-related net accretion, which was consistent with the first quarter of 2024
  • Earning asset yields of 4.92% were up 8 bps from the prior quarter
  • Total cost of funds of 1.85% was up 6 bps from the prior quarter
Noninterest Income
  • Noninterest income was at a record level of $43.3 million, or 30.8% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality
  • Period end total loans of $9.85 billion as of June 30, 2024, up $203.6 million, or 4.2% annualized, from December 31, 2023
  • Net charge-offs to average loans was 0.15% annualized
  • Nonperforming loans to total loans were 0.39%, consistent with the prior quarter
  • Allowance for loan losses to total loans was 1.22%
Deposits
  • Deposits were $11.27 billion as of June 30, 2024, up $302.5 million, or 2.8%, from December 31, 2023
  • Total cost of deposits was 1.68% for the second quarter of 2024, up 7 bps from the first quarter of 2024
  • Full cycle to-date deposit beta of 31%
  • Composition of total deposits is diverse and granular with over 562,000 accounts with an average per account balance of $20,052
Capital
  • Stockholders’ equity was $1.46 billion as of June 30, 2024
  • Tangible book value per share2 was $22.54 at June 30, 2024
  • Tangible equity to assets of 8.11%1
  • CET1 ratio of 11.70%; Leverage ratio of 10.16%


Loans

  • Period end total loans were $9.85 billion at June 30, 2024, $9.69 billion at March 31, 2024 and $9.65 billion at December 31, 2023.
  • Period end total loans increased $203.6 million from December 31, 2023. Total commercial loans increased $201.0 million to $5.18 billion; and total consumer loans increased $2.6 million to $4.67 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $294.9 million, or 6.9% annualized.
  • Commercial line of credit utilization rate was 23% at June 30, 2024, compared to 21% at March 31, 2024 and 23% at June 30, 2023.

Deposits

  • Total deposits at June 30, 2024 increased $302.5 million to $11.27 billion, compared to $10.97 billion at December 31, 2023. The increase in deposits 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 87.4% at June 30, 2024, compared to 88.0% at December 31, 2023.

Net Interest Income and Net Interest Margin

  • Net interest income for the second quarter of 2024 was $97.2 million, which was up $2.0 million, or 2.1%, from the first quarter of 2024 and up $8.1 million, or 9.1%, from the second quarter of 2023. The increase in net interest income from the first quarter of 2024 resulted primarily from the increase in average loans and the interest earned on those balances, partially offset by the increase in the cost of deposits.
  • The NIM on an FTE basis for the second quarter of 2024 was 3.18%, an increase of 4 bps from the first quarter of 2024, driven by an increase in average earning asset yields and lower average balances of short-term borrowings partly offset by an increase in the cost of interest-bearing deposits and a decrease in the average balance of noninterest-bearing demand deposit accounts. The NIM on an FTE basis decreased 9 bps from the second quarter of 2023 due to the increase in the cost of interest-bearing deposits, partially offset by lower average balances of short-term borrowings, higher earning asset yields and the impact of acquisition-related net accretion.
  • Earning asset yields for the three months ended June 30, 2024 increased 8 bps from the prior quarter to 4.92% and increased 50 bps from the same quarter in the prior year. Loan yields for the three months ended June 30, 2024 increased 9 bps from the prior quarter to 5.63% and increased 46 bps from the same quarter in the prior year. Average earning assets increased $94.3 million, or 0.8%, from the first quarter of 2024 due to organic loan growth. Average earning assets grew $1.38 billion, or 12.6%, from the second quarter of 2023 due to organic loan growth and the Salisbury Bancorp, Inc. (“Salisbury”) acquisition, which was completed in August 2023.
  • Total cost of deposits, including noninterest bearing deposits, was 1.68% for the second quarter of 2024, an increase of 7 bps from the prior quarter and an increase of 83 bps from the same period in the prior year. For the month of June, the total cost of deposits was 1.70%.
  • Total cost of funds for the three months ended June 30, 2024 was 1.85%, up 6 bps from the prior quarter and up 63 bps from the second quarter of 2023. For the month of June, the total cost of funds was 1.85%.

Asset Quality and Allowance for Loan Losses

  • Net charge-offs to total average loans for the second quarter of 2024 was 15 bps compared to 19 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 were 0.28% for each of the last three quarter-ends.
  • Provision expense for the three months ended June 30, 2024 was $8.9 million, compared to $5.6 million for the first quarter of 2024. The increase in provision expense from the prior quarter was primarily due to providing for the second quarter’s loan growth, changes in model assumptions, including the extension of the expected duration of the portfolio, and a specific reserve related to a commercial relationship placed on nonaccrual in the fourth quarter of 2023.
  • The allowance for loan losses was $120.5 million, or 1.22% of total loans, at June 30, 2024, compared to $115.3 million, or 1.19% of total loans, at March 31, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
  • The reserve for unfunded loan commitments was $4.3 million at June 30, 2024, compared to $4.7 million at March 31, 2024 and $5.1 million at December 31, 2023.

Noninterest Income        

  • Total noninterest income, excluding securities gains (losses), was $43.3 million for the three months ended June 30, 2024, up $0.1 million, or 0.3%, from the first quarter of 2024, and up $6.6 million, or 18.1%, from the second quarter of 2023.
  • Retirement plan administration fees were up $0.5 million from the prior quarter and were up $3.1 million from the second quarter of 2023. The increase from the prior quarter was due to organic growth, positive market performance and higher activity based fees. The increase from the second quarter of 2023 included the impact of the acquisition of Retirement Direct, LLC on July 1, 2023, organic growth and higher market levels.
  • Wealth management fees were up $0.5 million from the prior quarter and were up $1.9 million from the second quarter of 2023. The increase from the prior quarter was driven by organic growth and favorable market performance. The increase from the second quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
  • Insurance revenues decreased $0.5 million from the seasonally high first quarter of 2024 and increased 7.7% from the prior year due to solid organic growth.

Noninterest Expense        

  • Total noninterest expense was $89.6 million for the second quarter of 2024, compared to $91.8 million for the first quarter of 2024 and $78.8 million for the second quarter of 2023. Total noninterest expense, excluding $1.2 million of acquisition expenses in the second quarter of 2023, decreased 2.4% compared to the previous quarter and increased 15.4% from the second quarter of 2023.
  • Salaries and benefits decreased 0.6% from the prior quarter driven by seasonally higher payroll taxes and stock-based compensation expenses in the first quarter of 2024. These decreases were partially offset by a full quarter of merit pay increases, which were effective in March, and higher medical costs. The 18.3% increase from the second quarter of 2023 was driven by the impact of the Salisbury acquisition, merit pay increases, higher medical and other benefit costs.
  • Technology and data services decreased from the prior quarter primarily due to cost savings from various efficiency initiatives.
  • Occupancy costs decreased from the prior quarter due to lower seasonal costs, including utilities, and increased from the second quarter of 2023 driven by additional expenses from the Salisbury acquisition.
  • Amortization of intangible assets were consistent with the first quarter and increased $1.7 million from the second quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.

Income Taxes

  • The effective tax rate was 22.0% for the second quarter of 2024 which was up from 21.7% for the first quarter of 2024 and down from 22.4% for the second quarter of 2023.

Capital

  • Tangible common equity to tangible assets1 was 8.11% at June 30, 2024. Tangible book value per share2 was $22.54 at June 30, 2024, $22.07 at March 31, 2024 and $21.55 at June 30, 2023.
  • Stockholders’ equity increased $36.3 million from December 31, 2023 driven by net income generation of $66.5 million, partially offset by dividends declared of $30.2 million and a $2.0 million increase in accumulated other comprehensive loss driven by the change in the fair value of securities available for sale.
  • June 30, 2024, CET1 capital ratio of 11.70%, leverage ratio of 10.16% and total risk-based capital ratio of 14.88%.

Dividend

  • The Board of Directors approved a third-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per quarter, or 6.3%, increase over the dividend paid in the third quarter of 2023. This is the Company’s twelfth consecutive year of annual dividend increases. The dividend will be paid on September 13, 2024 to stockholders of record as of August 30, 2024.

Stock Repurchase

  • The Company purchased 5,700 shares of its common stock during the second quarter of 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 June 30, 2024, there were 1,992,400 shares available for repurchase under this plan.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, July 23, 2024, to review the second 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 https://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 $13.50 billion at June 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 154 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 https://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) the ability to increase market share and control expenses; (14) changes in the competitive environment among financial holding companies; (15) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (16) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (17) changes in the Company’s organization, compensation and benefit plans; (18) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (19) greater than expected costs or difficulties related to the integration of new products and lines of business; and (20) 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    
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Profitability (reported)            
Diluted earnings per share $ 0.69   $ 0.71   $ 0.64   $ 0.54   $ 0.70    
Weighted average diluted common shares outstanding   47,382,814     47,370,145     47,356,899     45,398,937     43,126,498    
Return on average assets3   0.98 %   1.02 %   0.89 %   0.76 %   1.02 %  
Return on average equity3   9.12 %   9.52 %   8.79 %   7.48 %   9.91 %  
Return on average tangible common equity1 3   13.23 %   13.87 %   13.08 %   10.73 %   13.13 %  
Net interest margin1 3   3.18 %   3.14 %   3.15 %   3.21 %   3.27 %  
             
  6 Months Ended June 30,        
    2024     2023          
Profitability (reported)            
Diluted earnings per share $ 1.40   $ 1.48          
Weighted average diluted common shares outstanding   47,381,054     43,129,259          
Return on average assets3   1.00 %   1.09 %        
Return on average equity3   9.32 %   10.68 %        
Return on average tangible common equity1 3   13.55 %   14.20 %        
Net interest margin1 3   3.16 %   3.41 %        
             
    2024     2023    
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Profitability (operating)            
Diluted earnings per share1 $ 0.69   $ 0.68   $ 0.72   $ 0.84   $ 0.80    
Return on average assets1 3   0.98 %   0.97 %   0.99 %   1.19 %   1.17 %  
Return on average equity1 3   9.14 %   9.04 %   9.79 %   11.65 %   11.40 %  
Return on average tangible common equity1 3   13.26 %   13.20 %   14.49 %   16.43 %   15.08 %  
             
  6 Months Ended June 30,        
    2024     2023          
Profitability (operating)            
Diluted earnings per share1 $ 1.37   $ 1.68          
Return on average assets1 3   0.98 %   1.24 %        
Return on average equity1 3   9.09 %   12.16 %        
Return on average tangible common equity1 3   13.23 %   16.15 %        
             
    2024     2023    
  2nd Q 1st Q 4th Q 3rd Q 2nd Q  
Balance sheet data            
Short-term interest-bearing accounts $ 35,207   $ 156,632   $ 31,378   $ 459,296   $ 31,878    
Securities available for sale   1,439,445     1,418,471     1,430,858     1,399,032     1,453,926    
Securities held to maturity   878,909     890,863     905,267     914,520     912,876    
Net loans   9,733,847     9,572,777     9,536,313     9,552,774     8,257,724    
Total assets   13,501,909     13,439,199     13,309,040     13,827,628     11,890,497    
Total deposits   11,271,459     11,195,289     10,968,994     11,401,452     9,529,919    
Total borrowings   476,082     518,190     637,387     740,603     880,518    
Total liabilities   12,039,954     11,997,784     11,883,349     12,464,807     10,680,004    
Stockholders’ equity   1,461,955     1,441,415     1,425,691     1,362,821     1,210,493    
             
Capital            
Equity to assets   10.83 %   10.73 %   10.71 %   9.86 %   10.18 %  
Tangible equity ratio1   8.11 %   7.98 %   7.93 %   7.15 %   7.95 %  
Book value per share $ 31.00   $ 30.57   $ 30.26   $ 28.94   $ 28.26    
Tangible book value per share2 $ 22.54   $ 22.07   $ 21.72   $ 20.39   $ 21.55    
Leverage ratio   10.16 %   10.09 %   9.71 %   10.23 %   10.51 %  
Common equity tier 1 capital ratio   11.70 %   11.68 %   11.57 %   11.31 %   12.29 %  
Tier 1 capital ratio   12.61 %   12.61 %   12.50 %   12.23 %   13.35 %  
Total risk-based capital ratio   14.88 %   14.87 %   14.75 %   14.45 %   15.50 %  
Common stock price (end of period) $ 38.60   $ 36.68   $ 41.91   $ 31.69   $ 31.85    
             
NBT Bancorp Inc. and Subsidiaries              
Asset Quality and Consolidated Loan Balances              
(unaudited, dollars in thousands)              
               
    2024     2023      
  2nd Q 1st Q 4th Q 3rd Q 2nd Q    
Asset quality              
Nonaccrual loans $ 34,755   $ 35,189   $ 34,213   $ 20,736   $ 16,931      
90 days past due and still accruing   3,333     2,600     3,661     3,528     2,755      
Total nonperforming loans   38,088     37,789     37,874     24,264     19,686      
Other real estate owned   74                 179      
Total nonperforming assets   38,162     37,789     37,874     24,264     19,865      
Allowance for loan losses   120,500     115,300     114,400     114,601     100,400      
               
Asset quality ratios              
Allowance for loan losses to total loans   1.22 %   1.19 %   1.19 %   1.19 %   1.20 %    
Total nonperforming loans to total loans   0.39 %   0.39 %   0.39 %   0.25 %   0.24 %    
Total nonperforming assets to total assets   0.28 %   0.28 %   0.28 %   0.18 %   0.17 %    
Allowance for loan losses to total nonperforming loans   316.37 %   305.12 %   302.05 %   472.31 %   510.01 %    
Past due loans to total loans4   0.30 %   0.33 %   0.32 %   0.49 %   0.45 %    
Net charge-offs to average loans3   0.15 %   0.19 %   0.22 %   0.18 %   0.17 %    
               
    2024     2023      
  2nd Q 1st Q 4th Q 3rd Q 2nd Q    
Loan net charge-offs by line of business              
Commercial $ (8 ) $ 772   $ 1,107   $ (344 ) $ 92      
Residential real estate and home equity   (76 )   (32 )   11     (75 )   (43 )    
Indirect auto   747     665     399     451     273      
Residential solar   1,610     1,211     1,081     1,253     581      
Other consumer   1,426     2,063     2,729     2,919     2,553      
  Total loan net charge-offs $ 3,699   $ 4,679   $ 5,327   $ 4,204   $ 3,456      
               
    2024     2023      
  2nd Q 1st Q 4th Q 3rd Q 2nd Q    
Allowance for loan losses as a percentage of loans by segment            
Commercial & industrial   0.76 %   0.79 %   0.84 %   0.87 %   0.86 %    
Commercial real estate   1.00 %   0.97 %   0.99 %   1.00 %   0.93 %    
Residential real estate   0.98 %   0.89 %   0.84 %   0.79 %   0.73 %    
Auto   0.85 %   0.81 %   0.83 %   0.82 %   0.80 %    
Residential solar   3.76 %   3.58 %   3.28 %   3.19 %   3.09 %    
Other consumer   4.09 %   4.24 %   4.70 %   5.23 %   5.98 %    
  Total   1.22 %   1.19 %   1.19 %   1.19 %   1.20 %    
               
    2024     2023      
  2nd Q 1st Q 4th Q 3rd Q 2nd Q    
Loans by line of business              
Commercial & industrial $ 1,397,935   $ 1,353,446   $ 1,354,248   $ 1,424,579   $ 1,319,093      
Commercial real estate   3,784,214     3,646,739     3,626,910     3,575,595     2,884,264      
Residential real estate   2,134,875     2,133,289     2,125,804     2,111,670     1,666,204      
Home equity   326,556     328,673     337,214     340,777     310,897      
Indirect auto   1,225,786     1,190,734     1,130,132     1,099,558     1,048,739      
Residential solar   861,883     896,147     917,755     934,082     926,365      
Other consumer   123,098     139,049     158,650     181,114     202,562      
  Total loans $ 9,854,347   $ 9,688,077   $ 9,650,713   $ 9,667,375   $ 8,358,124      
               
NBT Bancorp Inc. and Subsidiaries      
Consolidated Balance Sheets      
(unaudited, in thousands)      
       
  June 30, December 31,  
    2024   2023  
Assets      
Cash and due from banks $ 172,313 $ 173,811  
Short-term interest-bearing accounts   35,207   31,378  
Equity securities, at fair value   40,087   37,591  
Securities available for sale, at fair value   1,439,445   1,430,858  
Securities held to maturity (fair value $780,490 and $814,524, respectively)   878,909   905,267  
Federal Reserve and Federal Home Loan Bank stock   38,314   45,861  
Loans held for sale   3,183   3,371  
Loans   9,854,347   9,650,713  
Less allowance for loan losses   120,500   114,400  
  Net loans $ 9,733,847 $ 9,536,313  
Premises and equipment, net   78,713   80,675  
Goodwill   361,851   361,851  
Intangible assets, net   36,835   40,443  
Bank owned life insurance   269,310   265,732  
Other assets   413,895   395,889  
Total assets $ 13,501,909 $ 13,309,040  
       
Liabilities and stockholders’ equity      
Demand (noninterest bearing) $ 3,333,828 $ 3,413,829  
Savings, NOW and money market   6,532,834   6,230,456  
Time   1,404,797   1,324,709  
  Total deposits $ 11,271,459 $ 10,968,994  
Short-term borrowings   224,703   386,651  
Long-term debt   29,721   29,796  
Subordinated debt, net   120,462   119,744  
Junior subordinated debt   101,196   101,196  
Other liabilities   292,413   276,968  
  Total liabilities $ 12,039,954 $ 11,883,349  
       
Total stockholders’ equity $ 1,461,955 $ 1,425,691  
       
Total liabilities and stockholders’ equity $ 13,501,909 $ 13,309,040  
       
NBT Bancorp Inc. and Subsidiaries          
Consolidated Statements of Income          
(unaudited, in thousands except per share data)          
           
  Three Months Ended Six Months Ended  
  June 30, June 30,  
    2024     2023     2024     2023    
Interest, fee and dividend income          
Interest and fees on loans $ 136,606   $ 106,935   $ 269,752   $ 207,834    
Securities available for sale   7,562     7,493     14,686     15,109    
Securities held to maturity   5,190     4,991     10,493     10,026    
Other   1,408     1,170     2,772     1,812    
  Total interest, fee and dividend income $ 150,766   $ 120,589   $ 297,703   $ 234,781    
Interest expense          
Deposits $ 46,688   $ 19,986   $ 91,027   $ 31,130    
Short-term borrowings   2,899     8,126     6,320     13,045    
Long-term debt   291     290     581     337    
Subordinated debt   1,806     1,335     3,606     2,669    
Junior subordinated debt   1,908     1,767     3,821     3,449    
  Total interest expense $ 53,592   $ 31,504   $ 105,355   $ 50,630    
Net interest income $ 97,174   $ 89,085   $ 192,348   $ 184,151    
Provision for loan losses   8,899     3,606     14,478     7,515    
  Net interest income after provision for loan losses $ 88,275   $ 85,479   $ 177,870   $ 176,636    
Noninterest income          
Service charges on deposit accounts $ 4,219   $ 3,733   $ 8,336   $ 7,281    
Card services income   5,587     5,121     10,782     9,966    
Retirement plan administration fees   14,798     11,735     29,085     23,197    
Wealth management   10,173     8,227     19,870     16,314    
Insurance services   3,848     3,716     8,236     7,647    
Bank owned life insurance income   1,834     1,528     4,186     3,406    
Net securities (losses) gains   (92 )   (4,641 )   2,091     (9,639 )  
Other   2,865     2,626     6,038     5,282    
  Total noninterest income $ 43,232   $ 32,045   $ 88,624   $ 63,454    
Noninterest expense          
Salaries and employee benefits $ 55,393   $ 46,834   $ 111,097   $ 94,989    
Technology and data services   9,249     9,305     18,999     18,312    
Occupancy   7,671     6,923     15,769     14,143    
Professional fees and outside services   4,565     4,159     9,418     8,337    
Amortization of intangible assets   2,133     458     4,301     994    
Reserve for unfunded loan commitments   (380 )   (100 )   (830 )   (730 )  
Acquisition expenses       1,189         1,807    
Other   10,957     10,026     22,607     20,264    
  Total noninterest expense $ 89,588   $ 78,794   $ 181,361   $ 158,116    
Income before income tax expense $ 41,919   $ 38,730   $ 85,133   $ 81,974    
Income tax expense   9,203     8,658     18,594     18,244    
   Net income $ 32,716   $ 30,072   $ 66,539   $ 63,730    
Earnings Per Share          
Basic $ 0.69   $ 0.70   $ 1.41   $ 1.49    
Diluted $ 0.69   $ 0.70   $ 1.40   $ 1.48    
           
NBT Bancorp Inc. and Subsidiaries          
Quarterly Consolidated Statements of Income          
(unaudited, in thousands except per share data)          
           
    2024     2023  
  2nd Q 1st Q 4th Q 3rd Q 2nd Q
Interest, fee and dividend income          
Interest and fees on loans $ 136,606   $ 133,146   $ 132,738 $ 122,097   $ 106,935  
Securities available for sale   7,562     7,124     7,208   7,495     7,493  
Securities held to maturity   5,190     5,303     5,374   5,281     4,991  
Other   1,408     1,364     5,594   2,221     1,170  
  Total interest, fee and dividend income $ 150,766   $ 146,937   $ 150,914 $ 137,094   $ 120,589  
Interest expense          
Deposits $ 46,688   $ 44,339   $ 42,753 $ 30,758   $ 19,986  
Short-term borrowings   2,899     3,421     4,951   7,612     8,126  
Long-term debt   291     290     294   294     290  
Subordinated debt   1,806     1,800     1,795   1,612     1,335  
Junior subordinated debt   1,908     1,913     1,948   1,923     1,767  
  Total interest expense $ 53,592   $ 51,763   $ 51,741 $ 42,199   $ 31,504  
Net interest income $ 97,174   $ 95,174   $ 99,173 $ 94,895   $ 89,085  
Provision for loan losses $ 8,899   $ 5,579   $ 5,126 $ 3,883   $ 3,606  
Provision for loan losses – acquisition day 1 non-PCD             8,750      
Total provision for loan losses $ 8,899   $ 5,579   $ 5,126 $ 12,633   $ 3,606  
  Net interest income after provision for loan losses $ 88,275   $ 89,595   $ 94,047 $ 82,262   $ 85,479  
Noninterest income          
Service charges on deposit accounts $ 4,219   $ 4,117   $ 4,165 $ 3,979   $ 3,733  
Card services income   5,587     5,195     5,360   5,503     5,121  
Retirement plan administration fees   14,798     14,287     11,226   12,798     11,735  
Wealth management   10,173     9,697     9,152   9,297     8,227  
Insurance services   3,848     4,388     3,659   4,361     3,716  
Bank owned life insurance income   1,834     2,352     1,776   1,568     1,528  
Net securities (losses) gains   (92 )   2,183     507   (183 )   (4,641 )
Other   2,865     3,173     2,643   2,913     2,626  
  Total noninterest income $ 43,232   $ 45,392   $ 38,488 $ 40,236   $ 32,045  
Noninterest expense          
Salaries and employee benefits $ 55,393   $ 55,704   $ 50,013 $ 49,248   $ 46,834  
Technology and data services   9,249     9,750     10,174   9,677     9,305  
Occupancy   7,671     8,098     7,175   7,090     6,923  
Professional fees and outside services   4,565     4,853     5,115   4,149     4,159  
Amortization of intangible assets   2,133     2,168     2,131   1,609     458  
Reserve for unfunded loan commitments   (380 )   (450 )   300   460     (100 )
Impairment of a minority interest equity investment           4,750        
Acquisition expenses           254   7,917     1,189  
Other   10,957     11,650     12,839   10,647     10,026  
  Total noninterest expense $ 89,588   $ 91,773   $ 92,751 $ 90,797   $ 78,794  
Income before income tax expense $ 41,919   $ 43,214   $ 39,784 $ 31,701   $ 38,730  
Income tax expense   9,203     9,391     9,338   7,095     8,658  
   Net income $ 32,716   $ 33,823   $ 30,446 $ 24,606   $ 30,072  
Earnings Per Share          
Basic $ 0.69   $ 0.72   $ 0.65 $ 0.54   $ 0.70  
Diluted $ 0.69   $ 0.71   $ 0.64 $ 0.54   $ 0.70  
           
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  
    Q2 – 2024 Q1 – 2024 Q4 – 2023 Q3 – 2023 Q2 – 2023  
Assets                        
Short-term interest-bearing accounts   $ 48,861 5.48 % $ 47,972 4.48 % $ 319,907 5.59 % $ 121,384 4.26 % $ 28,473 3.62 %  
Securities taxable1     2,280,767 1.97 %   2,278,029 1.91 %   2,310,409 1.88 %   2,364,809 1.90 %   2,394,027 1.90 %  
Securities tax-exempt 1 5     226,032 3.56 %   230,468 3.58 %   232,575 3.51 %   219,427 3.34 %   201,499 2.83 %  
FRB and FHLB stock     40,283 7.41 %   42,296 7.89 %   47,994 8.98 %   53,841 6.76 %   51,454 7.12 %  
Loans1 6     9,772,014 5.63 %   9,674,892 5.54 %   9,653,191 5.47 %   9,043,582 5.36 %   8,307,894 5.17 %  
Total interest-earning assets   $ 12,367,957 4.92 % $ 12,273,657 4.84 % $ 12,564,076 4.79 % $ 11,803,043 4.63 % $ 10,983,347 4.42 %  
Other assets     1,064,487     1,055,386     1,052,024     968,220     835,424    
Total assets   $ 13,432,444   $ 13,329,043   $ 13,616,100   $ 12,771,263   $ 11,818,771    
Liabilities and stockholders’ equity                        
Money market deposit accounts   $ 3,254,252 3.65 % $ 3,129,160 3.56 % $ 3,045,531 3.43 % $ 2,422,451 2.91 % $ 2,113,965 2.30 %  
NOW deposit accounts     1,603,695 0.78 %   1,600,288 0.75 %   1,645,401 0.80 %   1,513,420 0.57 %   1,463,953 0.38 %  
Savings deposits     1,586,753 0.05 %   1,607,659 0.04 %   1,666,915 0.04 %   1,707,094 0.04 %   1,708,874 0.03 %  
Time deposits     1,391,062 4.00 %   1,352,559 4.00 %   1,343,548 3.81 %   1,178,352 3.60 %   856,305 2.97 %  
Total interest-bearing deposits   $ 7,835,762 2.40 % $ 7,689,666 2.32 % $ 7,701,395 2.20 % $ 6,821,317 1.79 % $ 6,143,097 1.30 %  
Federal funds purchased     29,945 5.56 %   19,769 5.53 %   217 5.48 %   6,033 5.39 %   48,407 5.35 %  
Repurchase agreements     86,405 1.55 %   82,419 1.55 %   82,387 1.59 %   71,516 1.40 %   55,627 1.08 %  
Short-term borrowings     155,159 5.58 %   213,390 5.34 %   345,250 5.31 %   540,380 5.34 %   557,818 5.27 %  
Long-term debt     29,734 3.94 %   29,772 3.92 %   29,809 3.91 %   29,800 3.91 %   29,773 3.91 %  
Subordinated debt, net     120,239 6.04 %   119,873 6.04 %   119,531 5.96 %   109,160 5.86 %   97,081 5.52 %  
Junior subordinated debt     101,196 7.58 %   101,196 7.60 %   101,196 7.64 %   101,196 7.54 %   101,196 7.00 %  
Total interest-bearing liabilities   $ 8,358,440 2.58 % $ 8,256,085 2.52 % $ 8,379,785 2.45 % $ 7,679,402 2.18 % $ 7,032,999 1.80 %  
Demand deposits     3,323,906     3,356,607     3,535,815     3,498,424     3,316,955    
Other liabilities     306,747     286,749     326,857     287,751     251,511    
Stockholders’ equity     1,443,351     1,429,602     1,373,643     1,305,686     1,217,306    
Total liabilities and stockholders’ equity   $ 13,432,444   $ 13,329,043   $ 13,616,100   $ 12,771,263   $ 11,818,771    
Interest rate spread     2.34 %   2.32 %   2.34 %   2.45 %   2.62 %  
Net interest margin (FTE)1     3.18 %   3.14 %   3.15 %   3.21 %   3.27 %  
                         
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  
Six Months Ended June 30,     2024     2023      
Assets                  
Short-term interest-bearing accounts   $ 48,416 $ 1,201 4.99 % $ 31,328 $ 447 2.88 %    
Securities taxable1     2,279,399   21,977 1.94 %   2,418,245   22,902 1.91 %    
Securities tax-exempt 1 5     228,250   4,053 3.57 %   201,908   2,826 2.82 %    
FRB and FHLB stock     41,289   1,571 7.65 %   46,327   1,365 5.94 %    
Loans1 6     9,723,453   270,217 5.59 %   8,249,034   208,038 5.09 %    
Total interest-earning assets   $ 12,320,807 $ 299,019 4.88 % $ 10,946,842 $ 235,578 4.34 %    
Other assets     1,059,937       836,148        
Total assets   $ 13,380,744     $ 11,782,990        
Liabilities and stockholders’ equity                  
Money market deposit accounts   $ 3,191,706 $ 57,278 3.61 % $ 2,097,678 $ 18,368 1.77 %    
NOW deposit accounts     1,601,992   6,120 0.77 %   1,531,021   2,824 0.37 %    
Savings deposits     1,597,206   352 0.04 %   1,744,969   286 0.03 %    
Time deposits     1,371,810   27,277 4.00 %   748,573   9,652 2.60 %    
Total interest-bearing deposits   $ 7,762,714 $ 91,027 2.36 % $ 6,122,241 $ 31,130 1.03 %    
Federal funds purchased     24,857   686 5.55 %   46,381   1,184 5.15 %    
Repurchase agreements     84,412   649 1.55 %   63,440   164 0.52 %    
Short-term borrowings     184,275   4,985 5.44 %   458,064   11,697 5.15 %    
Long-term debt     29,753   581 3.93 %   18,598   337 3.65 %    
Subordinated debt, net     120,056   3,606 6.04 %   97,024   2,669 5.55 %    
Junior subordinated debt     101,196   3,821 7.59 %   101,196   3,449 6.87 %    
Total interest-bearing liabilities   $ 8,307,263 $ 105,355 2.55 % $ 6,906,944 $ 50,630 1.48 %    
Demand deposits     3,340,257       3,409,209        
Other liabilities     296,747       262,951        
Stockholders’ equity     1,436,477       1,203,886        
Total liabilities and stockholders’ equity $ 13,380,744     $ 11,782,990        
Net interest income (FTE)1     $ 193,664     $ 184,948      
Interest rate spread       2.33 %     2.86 %    
Net interest margin (FTE)1       3.16 %     3.41 %    
Taxable equivalent adjustment     $ 1,316     $ 797      
Net interest income     $ 192,348     $ 184,151      
                   
                 
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      
    2nd Q 1st Q 4th Q 3rd Q 2nd Q    
  Operating net income              
  Net income $ 32,716   $ 33,823   $ 30,446   $ 24,606   $ 30,072      
  Acquisition expenses           254     7,917     1,189      
  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 losses (gains)   92     (2,183 )   (507 )   183     4,641      
  Adjustments to net income $ 92   $ (2,183 ) $ 4,497   $ 17,686   $ 5,830      
  Adjustments to net income (net of tax) $ 72   $ (1,703 ) $ 3,435   $ 13,730   $ 4,525      
  Operating net income $ 32,788   $ 32,120   $ 33,881   $ 38,336   $ 34,597      
  Operating diluted earnings per share $ 0.69   $ 0.68   $ 0.72   $ 0.84   $ 0.80      
                 
    6 Months Ended June 30,          
      2024     2023            
  Operating net income              
  Net income $ 66,539   $ 63,730            
  Acquisition expenses       1,807            
  Securities (gains) losses   (2,091 )   9,639            
  Adjustments to net income $ (2,091 ) $ 11,446            
  Adjustments to net income (net of tax) $ (1,631 ) $ 8,866            
  Operating net income $ 64,908   $ 72,596            
  Operating diluted earnings per share $ 1.37   $ 1.68            
                 
      2024     2023      
    2nd Q 1st Q 4th Q 3rd Q 2nd Q    
  FTE adjustment              
  Net interest income $ 97,174   $ 95,174   $ 99,173   $ 94,895   $ 89,085      
  Add: FTE adjustment   658     658     669     568     402      
  Net interest income (FTE) $ 97,832   $ 95,832   $ 99,842   $ 95,463   $ 89,487      
  Average earning assets $ 12,367,957   $ 12,273,657   $ 12,564,076   $ 11,803,043   $ 10,983,347      
  Net interest margin (FTE)3   3.18 %   3.14 %   3.15 %   3.21 %   3.27 %    
                 
    6 Months Ended June 30,          
      2024     2023            
  FTE adjustment              
  Net interest income $ 192,348   $ 184,151            
  Add: FTE adjustment   1,316     797            
  Net interest income (FTE) $ 193,664   $ 184,948            
  Average earning assets $ 12,320,807   $ 10,946,842            
  Net interest margin (FTE)3   3.16 %   3.41 %          
                 
  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      
    2nd Q 1st Q 4th Q 3rd Q 2nd Q    
  Tangible equity to tangible assets              
  Total equity $ 1,461,955   $ 1,441,415   $ 1,425,691   $ 1,362,821   $ 1,210,493      
  Intangible assets   398,686     400,819     402,294     402,745     287,701      
  Total assets $ 13,501,909   $ 13,439,199   $ 13,309,040   $ 13,827,628   $ 11,890,497      
  Tangible equity to tangible assets   8.11 %   7.98 %   7.93 %   7.15 %   7.95 %    
                 
      2024     2023      
    2nd Q 1st Q 4th Q 3rd Q 2nd Q    
  Return on average tangible common equity            
  Net income $ 32,716   $ 33,823   $ 30,446   $ 24,606   $ 30,072      
  Amortization of intangible assets (net of tax)   1,600     1,626     1,599     1,206     344      
  Net income, excluding intangibles amortization $ 34,316   $ 35,449   $ 32,045   $ 25,812   $ 30,416      
                 
  Average stockholders’ equity $ 1,443,351   $ 1,429,602   $ 1,373,643   $ 1,305,686   $ 1,217,306      
  Less: average goodwill and other intangibles   399,968     401,756     401,978     350,912     287,974      
  Average tangible common equity $ 1,043,383   $ 1,027,846   $ 971,665   $ 954,774   $ 929,332      
  Return on average tangible common equity3   13.23 %   13.87 %   13.08 %   10.73 %   13.13 %    
                 
    6 Months Ended June 30,          
      2024     2023            
  Return on average tangible common equity            
  Net income $ 66,539   $ 63,730            
  Amortization of intangible assets (net of tax)   3,226     746            
  Net income, excluding intangibles amortization $ 69,765   $ 64,476            
                 
  Average stockholders’ equity $ 1,436,477   $ 1,203,886            
  Less: average goodwill and other intangibles   400,862     288,163            
  Average tangible common equity $ 1,035,615   $ 915,723            
  Return on average tangible common equity3   13.55 %   14.20 %          
                 
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.  
                 


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