• NBT Bancorp Inc. Announces Full Year Net Income and Declares Dividend

    Source: Nasdaq GlobeNewswire / 23 Jan 2024 16:15:01   America/New_York

    NORWICH, N.Y., Jan. 23, 2024 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and twelve months ended December 31, 2023.

    Net income for the three months ended December 31, 2023 was $30.4 million, or $0.64 per diluted common share, compared to $36.1 million, or $0.84 per diluted common share, for the three months ended December 31, 2022, and $24.6 million, or $0.54 per diluted common share, in the third quarter of 2023. Operating diluted earnings per share1, a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses, securities gains (losses) and impairment of a minority interest equity investment, net of tax, was $0.72 for the fourth quarter of 2023, compared to $0.86 in the fourth quarter of 2022 and $0.84 in the third quarter of 2023.

    Net income for the year ended December 31, 2023 was $118.8 million, or $2.65 per diluted common share, compared to $152.0 million, or $3.52 per diluted common share, in the prior year. Operating diluted earnings per share1 was $3.23 for the year ended December 31, 2023, compared to $3.56 in the prior year.

    CEO Comments

    “NBT’s fourth quarter and full year results reflect our consistent dedication to improving our traditional banking franchise while growing our diversified revenue sources,” said NBT President and CEO John H. Watt, Jr. “In a year characterized by unprecedented market volatility, we grew loans and deposits, maintained strong asset quality, improved our capital position, completed the high-value acquisition of Salisbury Bancorp, Inc., and continued to deliver best-in-class customer service.”

    Fourth Quarter Financial Highlights

    Net Income
    • Net income of $30.4 million and diluted earnings per share of $0.64
    • Operating net income was $33.9 million and diluted operating earnings per share of $0.721
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $99.8 million1
    • Net interest margin (“NIM”) on an FTE basis was 3.15%1, down 6 basis points (“bps”) from the prior quarter
    • Included in FTE net interest income was $2.6 million of acquisition-related net accretion which positively impacted NIM by 8 bps
    • Earning asset yields of 4.79% were up 16 bps from the prior quarter
    • Total cost of funds of 1.72% was up 22 bps from the prior quarter
    Noninterest Income
    • Excluding net securities gains (losses), noninterest income was $38.0 million, or 27.7% of total revenues
    Loans and Credit Quality
    • Period end total loans of $9.65 billion as of December 31, 2023, up $1.50 billion from December 31, 2022, and included $1.18 billion of loans acquired from Salisbury Bancorp, Inc. (“Salisbury”)
    • Excluding loans acquired from Salisbury, loans grew $320.6 million, or 3.9%, year-over-year
    • Net charge-offs to average loans were 0.22%
    • Nonperforming loans to total loans were 0.39%, compared to 0.25% in the prior quarter and 0.26% in the fourth quarter of 2022
    • Allowance for loan losses to total loans was 1.19%
    Deposits
    • Deposits were $10.97 billion as of December 31, 2023, up $1.47 billion from December 31, 2022, and included $1.31 billion in deposits acquired from Salisbury
    • Total cost of deposits was 1.51% for the fourth quarter of 2023, up 33 bps from the third quarter
    • Full cycle to-date deposit beta of 28%
    • Composition of total deposits is diverse and granular with over 563,000 accounts with an average per account balance of $19,483
    Capital
    • Stockholders’ equity was $1.43 billion as of December 31, 2023
    • Tangible book value per share2 was $21.72 at December 31, 2023
    • Tangible equity to assets grew 11% to 7.93%1
    • CET1 ratio of 11.57%; Leverage ratio of 9.71%


    Loans

    • Period end total loans were $9.65 billion at December 31, 2023, consistent with the end of the third quarter of 2023 and were $8.15 billion at December 31, 2022.
    • Period end total loans increased $1.50 billion from December 31, 2022, including loans acquired from Salisbury. Commercial and industrial loans increased $88.2 million to $1.35 billion; commercial real estate loans increased $819.0 million to $3.63 billion; and total consumer loans increased $593.4 million to $4.67 billion.
    • Commercial line of credit utilization rate was 20% at December 31, 2023, compared to 22% at September 30, 2023 and 21% at December 31, 2022.

    Deposits

    • Total deposits at December 31, 2023 were $10.97 billion, compared to $9.50 billion at December 31, 2022. The Company continued to experience incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments, during each quarter of 2023.
    • Loan to deposit ratio was 88.0% at December 31, 2023, compared to 85.8% at December 31, 2022. Consistent with historical trends and as seasonally expected, ending deposits declined from September 30, 2023 to December 31, 2023.

    Net Interest Income and Net Interest Margin

    • Net interest income for the fourth quarter of 2023 was $99.2 million, which was up $4.3 million, or 4.5%, from the third quarter of 2023 and down $0.6 million, or 0.6%, from the fourth quarter of 2022. The increase in net interest income resulted from the benefit of the full quarter impact of the Salisbury acquisition and was partially offset by the increase in cost of funds outpacing the improvement in asset yields during the quarter.
    • The NIM on an FTE basis for the fourth quarter of 2023 was 3.15%, a decrease of 6 bps from the third quarter of 2023, driven by an increase in the cost of interest-bearing deposits, partly offset by an increase in average earning asset yields and a full quarter impact of acquisition-related net accretion. The NIM on an FTE basis decreased 53 bps from the fourth quarter of 2022 due to the increase in the cost of interest-bearing deposits and higher short-term borrowings costs and average balances, partially offset by higher earning asset yields.
    • Earning asset yields for the three months ended December 31, 2023 increased 16 bps from the prior quarter to 4.79% and increased 77 bps from the same quarter in the prior year. Average earning assets grew $761.0 million, or 6.4%, from the third quarter of 2023 due to the Salisbury acquisition and organic loan growth.
    • Total cost of deposits, including noninterest bearing deposits, was 1.51% for the fourth quarter of 2023, an increase of 33 bps from the prior quarter and up 134 bps from the same period in the prior year.
    • Total cost of funds for the three months ended December 31, 2023 was 1.72%, up 22 bps from the prior quarter and up 135 bps from the fourth quarter of 2022.

    Asset Quality and Allowance for Loan Losses

    • Net charge-offs to total average loans was 22 bps compared to 18 bps in both the prior quarter and in the fourth quarter of 2022. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter and full year.
    • Nonperforming assets to total assets were 0.28% at December 31, 2023, compared to 0.18% at both September 30, 2023 and December 31, 2022. The increase in nonperforming assets was attributable to a diversified, multi-tenant commercial real estate development relationship that was placed into a nonaccrual status in the fourth quarter of 2023, in which NBT is a participant. The relationship is being actively managed and recent appraised values continue to support its carrying value, and as such, no specific reserve has been established.
    • Provision expense for the three months ended December 31, 2023 was $5.1 million, compared to $12.6 million for the third quarter of 2023 and $7.7 million for the fourth quarter of 2022. 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 $114.4 million, or 1.19% of total loans, at December 31, 2023, consistent with September 30, 2023 and 1.24% of total loans at December 31, 2022. The allowance was consistent with the third quarter of 2023 and the increase in the allowance for loan losses from the fourth quarter of 2022 was due to $14.5 million of allowance for acquired Salisbury loans which included both the $8.8 million of non-purchased credit deteriorated allowance recognized through the provision for loan losses and the $5.8 million of purchased credit deteriorated allowance reclassified from loans.
    • The reserve for unfunded loan commitments increased to $5.1 million at December 31, 2023 compared to the prior quarter-end at $4.8 million and to $5.1 million at December 31, 2022. 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 $38.0 million for the three months ended December 31, 2023, down $2.4 million from the seasonally high third quarter, and $3.7 million higher, or 10.7%, from the fourth quarter of 2022.
    • Service charges on deposit accounts were higher than the prior quarter and the fourth quarter of 2022 due primarily to the Salisbury acquisition and new account growth.
    • Retirement plan administration fees were down $1.6 million from the prior quarter and were $0.6 million higher than the fourth quarter of 2022. The decrease from the prior quarter, as expected, was due to certain seasonal activity-based fees in the third quarter. The increase from the fourth quarter of 2022 included the impact from the acquisition of Retirement Direct, LLC on July 1, 2023.
    • Wealth management fees were consistent with the prior quarter as certain prior quarter seasonal activity-based fees were offset by the full quarter addition of Salisbury revenues and were $1.1 million higher than the fourth quarter of 2022.
    • Insurance services were down $0.7 million from the third quarter which has comparatively higher levels of policy renewals than the fourth quarter.

    Noninterest Expense

    • Total noninterest expense was $92.8 million for the fourth quarter of 2023 compared to $90.8 million in the third quarter of 2023 and $79.5 million in the fourth quarter of 2022. Total noninterest expense, excluding $0.3 million of acquisition expenses in the fourth quarter of 2023, $7.9 million in the third quarter of 2023 and $1.0 million in the fourth quarter of 2022, and the $4.8 million impairment of a minority interest equity investment in the fourth quarter of 2023 increased 5.9% compared to the previous quarter primarily due to a full quarter impact of the Salisbury acquisition and higher professional service fees and increased 11.7% from the fourth quarter of 2022.
    • Salaries and benefits increased 1.6% from the prior quarter driven by the full quarter impact of the Salisbury acquisition and was partially offset by lower quarterly incentive costs.
    • Technology and data services, professional fees and outside services, and advertising increased from the prior quarter and the fourth quarter of 2022 due to the timing of initiatives that occurred following the completion of the Salisbury acquisition in the third quarter.
    • Amortization of intangible assets increased $0.5 million from the prior quarter and $1.6 million from the fourth quarter of 2022 primarily due to the amortization of intangible assets related to the Salisbury acquisition.
    • FDIC assessment expense increased $0.2 million in the prior quarter primarily due to the acquisition of Salisbury and increased $1.1 million from the fourth quarter of 2022 driven by the statutory increase in the FDIC assessment rate.
    • In the fourth quarter of 2023, the Company recorded a full $4.8 million ($0.08 per diluted share) impairment of its minority interest equity investment in a provider of financial and technology services to residential solar equipment installers, due to the uncertainty in the realizability of the investment.

    Income Taxes

    • The effective tax rate was 23.5% for the fourth quarter of 2023 which was up from 22.4% in the third quarter of 2023 and 22.6% for the fourth quarter of 2022 and primarily to adjust to a full year tax rate for 2023 of 22.6%, including assessment of acquisition related items.

    Capital

    • Tangible common equity to tangible assets1 was 7.93% at December 31, 2023. Tangible book value per share2 was $21.72 at December 31, 2023, $20.39 at September 30, 2023 and $20.65 at December 31, 2022.
    • Stockholders’ equity increased $252.1 million from December 31, 2022 driven by the Salisbury acquisition adding $161.7 million of capital, net income generation of $118.8 million and a $29.1 million increase in accumulated other comprehensive income driven by the change in the market value of securities available for sale, partially offset by dividends declared of $55.9 million and the repurchase of common stock of $4.9 million.
    • December 31, 2023, CET1 capital ratio of 11.57%, leverage ratio of 9.71% and total risk-based capital ratio of 14.75%.

    Dividend

    • On January 22, 2024, the Board of Directors approved a first-quarter cash dividend of $0.32 per share, which represents a $0.02 per quarter, or 6.7%, increase over the dividend paid in the first quarter of 2023. The dividend will be paid on March 15, 2024 to stockholders of record as of March 1, 2024.

    Stock Repurchase

    • The Company purchased 155,500 shares of its common stock during 2023 at an average price of $31.79 per share under its previously announced share repurchase program. The repurchase program under which these shares were purchased expired on December 31, 2023.
    • On December 18, 2023, the Board of Directors authorized and approved an amendment to the Company’s previously announced stock repurchase program. Pursuant to the amended stock repurchase program, the Company may repurchase up to 2,000,000 of the currently outstanding shares of its common stock with all repurchases under the stock repurchase program to be made by December 31, 2025. 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.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Wednesday, January 24, 2024, to review fourth quarter 2023 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 $13.31 billion at December 31, 2023. 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 153 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.nbtinsurance.com.

    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 rate, 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 possibility that NBT may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) 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; (17) 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; (18) changes in the Company’s organization, compensation and benefit plans; (19) 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; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; and (21) 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.

          
    NBT Bancorp Inc. and Subsidiaries     
    Selected Financial Data     
    (unaudited, dollars in thousands except per share data)    
          
     2023
    		2022
     4th Q3rd Q2nd Q1st Q4th Q
    Profitability (reported)     
    Diluted earnings per share$ 0.64 $0.54 $0.70 $0.78 $0.84 
    Weighted average diluted common shares outstanding 47,356,899  45,398,937  43,126,498  43,125,986  43,144,666 
    Return on average assets3 0.89% 0.76% 1.02% 1.16% 1.23%
    Return on average equity3 8.79% 7.48% 9.91% 11.47% 12.30%
    Return on average tangible common equity1 3 13.08% 10.73% 13.13% 15.31% 16.54%
    Net interest margin1 3 3.15% 3.21% 3.27% 3.55% 3.68%
          
     12 Months Ended December 31,   
      2023  2022    
    Profitability (reported)     
    Diluted earnings per share$ 2.65 $3.52    
    Weighted average diluted common shares outstanding 44,770,171  43,181,312    
    Return on average assets 0.95% 1.29%   
    Return on average equity 9.34% 12.67%   
    Return on average tangible common equity1 13.02% 16.89%   
    Net interest margin1 3.29% 3.34%   
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Profitability (operating)     
    Diluted earnings per share1$ 0.72 $0.84 $0.80 $0.88 $0.86 
    Return on average assets1 3 0.99% 1.19% 1.17% 1.31% 1.26%
    Return on average equity1 3 9.79% 11.65% 11.40% 12.95% 12.61%
    Return on average tangible common equity1 3 14.49% 16.43% 15.08% 17.27% 16.95%
          
     12 Months Ended December 31,   
      2023  2022    
    Profitability (operating)     
    Diluted earnings per share1$ 3.23 $3.56    
    Return on average assets1 1.16% 1.30%   
    Return on average equity1 11.38% 12.81%   
    Return on average tangible common equity1 15.78% 17.06%   
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Balance sheet data     
    Short-term interest-bearing accounts$ 31,378 $459,296 $31,878 $68,045 $30,862 
    Securities available for sale 1,430,858  1,399,032  1,453,926  1,512,008  1,527,225 
    Securities held to maturity 905,267  914,520  912,876  906,824  919,517 
    Net loans 9,536,313  9,552,774  8,257,724  8,164,328  8,049,347 
    Total assets 13,309,040  13,827,628  11,890,497  11,839,730  11,739,296 
    Total deposits 10,968,994  11,401,452  9,529,919  9,681,205  9,495,933 
    Total borrowings 637,387  740,603  880,518  703,248  787,950 
    Total liabilities 11,883,349  12,464,807  10,680,004  10,628,071  10,565,742 
    Stockholders' equity 1,425,691  1,362,821  1,210,493  1,211,659  1,173,554 
          
    Capital     
    Equity to assets 10.71% 9.86% 10.18% 10.23% 10.00%
    Tangible equity ratio1 7.93% 7.15% 7.95% 7.99% 7.73%
    Book value per share$ 30.26 $28.94 $28.26 $28.24 $27.38 
    Tangible book value per share2$ 21.72 $20.39 $21.55 $21.52 $20.65 
    Leverage ratio 9.71% 10.23% 10.51% 10.43% 10.32%
    Common equity tier 1 capital ratio 11.57% 11.31% 12.29% 12.28% 12.12%
    Tier 1 capital ratio 12.50% 12.23% 13.35% 13.34% 13.19%
    Total risk-based capital ratio 14.75% 14.45% 15.50% 15.53% 15.38%
    Common stock price (end of period)$ 41.91 $31.69 $31.85 $33.71 $43.42 
          


    NBT Bancorp Inc. and Subsidiaries     
    Asset Quality and Consolidated Loan Balances     
    (unaudited, dollars in thousands)     
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Asset quality     
    Nonaccrual loans$ 34,213 $20,736 $16,931 $16,284 $17,233 
    90 days past due and still accruing 3,661  3,528  2,755  2,328  3,823 
    Total nonperforming loans 37,874  24,264  19,686  18,612  21,056 
    Other real estate owned -  -  179  105  105 
    Total nonperforming assets 37,874  24,264  19,865  18,717  21,161 
    Allowance for loan losses 114,400  114,601  100,400  100,250  100,800 
          
    Asset quality ratios     
    Allowance for loan losses to total loans 1.19% 1.19% 1.20% 1.21% 1.24%
    Total nonperforming loans to total loans 0.39% 0.25% 0.24% 0.23% 0.26%
    Total nonperforming assets to total assets 0.28% 0.18% 0.17% 0.16% 0.18%
    Allowance for loan losses to total nonperforming loans 302.05% 472.31% 510.01% 538.63% 478.72%
    Past due loans to total loans4 0.32% 0.49% 0.45% 0.30% 0.33%
    Net charge-offs to average loans3 0.22% 0.18% 0.17% 0.19% 0.18%
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Loan net charge-offs by line of business     
    Commercial$ 1,107 $(344)$92 $(252)$(37)
    Residential real estate and home equity 11  (75) (43) 80  (79)
    Indirect auto 399  451  273  423  445 
    Residential solar 1,081  1,253  581  656  596 
    Other consumer 2,729  2,919  2,553  2,904  2,752 
    Total loan net charge-offs$ 5,327 $4,204 $3,456 $3,811 $3,677 
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Allowance for loan losses as a percentage of loans by segment    
    Commercial & industrial 0.84% 0.87% 0.86% 0.85% 0.82%
    Commercial real estate 0.99% 1.00% 0.93% 0.93% 0.91%
    Residential real estate 0.84% 0.79% 0.73% 0.73% 0.72%
    Auto 0.83% 0.82% 0.80% 0.77% 0.81%
    Residential solar 3.28% 3.19% 3.09% 3.04% 3.21%
    Other consumer 4.70% 5.23% 5.98% 6.19% 6.27%
    Total 1.19% 1.19% 1.20% 1.21% 1.24%
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Loans by line of business     
    Commercial & industrial$ 1,354,248 $1,424,579 $1,319,093 $1,278,291 $1,266,031 
    Commercial real estate 3,626,910  3,575,595  2,884,264  2,845,631  2,807,941 
    Residential real estate 2,125,804  2,111,670  1,666,204  1,651,918  1,649,870 
    Indirect auto 1,130,132  1,099,558  1,048,739  1,031,315  989,587 
    Residential solar 917,755  934,082  926,365  920,084  856,798 
    Home equity 337,214  340,777  310,897  308,219  314,124 
    Other consumer 158,650  181,114  202,562  229,120  265,796 
    Total loans$ 9,650,713 $9,667,375 $8,358,124 $8,264,578 $8,150,147 
          


    NBT Bancorp Inc. and Subsidiaries   
    Consolidated Balance Sheets  
    (unaudited, dollars in thousands)  
       
     December 31,December 31,
     20232022
    Assets  
    Cash and due from banks$ 173,811$166,488
    Short-term interest-bearing accounts 31,378 30,862
    Equity securities, at fair value 37,591 30,784
    Securities available for sale, at fair value 1,430,858 1,527,225
    Securities held to maturity (fair value $814,524 and $812,647, respectively) 905,267 919,517
    Federal Reserve and Federal Home Loan Bank stock 45,861 44,713
    Loans held for sale 3,371 562
    Loans 9,650,713 8,150,147
    Less allowance for loan losses 114,400 100,800
    Net loans$ 9,536,313$8,049,347
    Premises and equipment, net 80,675 69,047
    Goodwill 361,851 281,204
    Intangible assets, net 40,443 7,341
    Bank owned life insurance 265,732 232,409
    Other assets 395,889 379,797
    Total assets$ 13,309,040$11,739,296
       
    Liabilities and stockholders' equity  
    Demand (noninterest bearing)$ 3,413,829$3,617,324
    Savings, NOW and money market 6,230,456 5,444,837
    Time 1,324,709 433,772
    Total deposits$ 10,968,994$9,495,933
    Short-term borrowings 386,651 585,012
    Long-term debt 29,796 4,815
    Subordinated debt, net 119,744 96,927
    Junior subordinated debt 101,196 101,196
    Other liabilities 276,968 281,859
    Total liabilities$ 11,883,349$10,565,742
       
    Total stockholders' equity$ 1,425,691$1,173,554
       
    Total liabilities and stockholders' equity$ 13,309,040$11,739,296
       


    NBT Bancorp Inc. and Subsidiaries     
    Consolidated Statements of Income    
    (unaudited, dollars in thousands except per share data)   
         
     Three Months EndedTwelve Months Ended
     December 31,December 31,
     2023202220232022
    Interest, fee and dividend income    
    Interest and fees on loans$ 132,738$95,620 $ 462,669 $332,768 
    Securities available for sale 7,208 7,831  29,812  29,653 
    Securities held to maturity 5,374 5,050  20,681  17,582 
    Other 5,594 671  9,627  4,067 
    Total interest, fee and dividend income$ 150,914$109,172 $ 522,789 $384,070 
    Interest expense    
    Deposits$ 42,753$4,092 $ 104,641 $9,923 
    Short-term borrowings 4,951 2,510  25,608  2,623 
    Long-term debt 294 21  925  161 
    Subordinated debt 1,795 1,346  6,076  5,424 
    Junior subordinated debt 1,948 1,424  7,320  3,749 
    Total interest expense$ 51,741$9,393 $ 144,570 $21,880 
    Net interest income$ 99,173$99,779 $ 378,219 $362,190 
    Provision for loan losses$ 5,126$7,677 $ 16,524 $17,147 
    Provision for loan losses - acquisition day 1 non-PCD - -  8,750  - 
    Total provision for loan losses$ 5,126$7,677 $ 25,274 $17,147 
    Net interest income after provision for loan losses$ 94,047$92,102 $ 352,945 $345,043 
    Noninterest income    
    Service charges on deposit accounts$ 4,165$3,598 $ 15,425 $14,630 
    Card services income 5,360 4,958  20,829  29,058 
    Retirement plan administration fees 11,226 10,661  47,221  48,112 
    Wealth management 9,152 8,017  34,763  33,311 
    Insurance services 3,659 3,438  15,667  14,696 
    Bank owned life insurance income 1,776 1,419  6,750  6,044 
    Net securities gains (losses) 507 (217) (9,315) (1,131)
    Other 2,643 2,217  10,838  10,858 
    Total noninterest income$ 38,488$34,091 $ 142,178 $155,578 
    Noninterest expense    
    Salaries and employee benefits$ 50,013$47,235 $ 194,250 $187,830 
    Technology and data services 10,174 9,124  38,163  35,712 
    Occupancy 7,175 6,521  28,408  26,282 
    Professional fees and outside services 5,115 4,811  17,601  16,810 
    Office supplies and postage 1,913 1,699  6,917  6,140 
    FDIC assessment 1,860 798  6,257  3,197 
    Advertising 1,213 879  3,054  2,822 
    Amortization of intangible assets 2,131 538  4,734  2,263 
    Loan collection and other real estate owned, net 503 957  2,618  2,647 
    Reserve for unfunded loan commitments 300 (185) 30  20 
    Impairment of a minority interest equity investment 4,750 -  4,750  - 
    Acquisition expenses 254 967  9,978  967 
    Other 7,350 6,165  24,904  19,775 
    Total noninterest expense$ 92,751$79,509 $ 341,664 $304,465 
    Income before income tax expense$ 39,784$46,684 $ 153,459 $196,156 
    Income tax expense 9,338 10,563  34,677  44,161 
    Net income$ 30,446$36,121 $ 118,782 $151,995 
    Earnings Per Share    
    Basic$ 0.65$0.84 $ 2.67 $3.54 
    Diluted$ 0.64$0.84 $ 2.65 $3.52 
         


    NBT Bancorp Inc. and Subsidiaries     
    Quarterly Consolidated Statements of Income     
    (unaudited, dollars in thousands except per share data)    
          
      2023  2022 
     4th Q3rd Q2nd Q1st Q4th Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 132,738$122,097 $106,935 $100,899 $95,620 
    Securities available for sale 7,208 7,495  7,493  7,616  7,831 
    Securities held to maturity 5,374 5,281  4,991  5,035  5,050 
    Other 5,594 2,221  1,170  642  671 
    Total interest, fee and dividend income$ 150,914$137,094 $120,589 $114,192 $109,172 
    Interest expense     
    Deposits$ 42,753$30,758 $19,986 $11,144 $4,092 
    Short-term borrowings 4,951 7,612  8,126  4,919  2,510 
    Long-term debt 294 294  290  47  21 
    Subordinated debt 1,795 1,612  1,335  1,334  1,346 
    Junior subordinated debt 1,948 1,923  1,767  1,682  1,424 
    Total interest expense$ 51,741$42,199 $31,504 $19,126 $9,393 
    Net interest income$ 99,173$94,895 $89,085 $95,066 $99,779 
    Provision for loan losses$ 5,126$3,883 $3,606 $3,909 $7,677 
    Provision for loan losses - acquisition day 1 non-PCD - 8,750  -  -  - 
    Total provision for loan losses$ 5,126$12,633 $3,606 $3,909 $7,677 
    Net interest income after provision for loan losses$ 94,047$82,262 $85,479 $91,157 $92,102 
    Noninterest income     
    Service charges on deposit accounts$ 4,165$3,979 $3,733 $3,548 $3,598 
    Card services income 5,360 5,503  5,121  4,845  4,958 
    Retirement plan administration fees 11,226 12,798  11,735  11,462  10,661 
    Wealth management 9,152 9,297  8,227  8,087  8,017 
    Insurance services 3,659 4,361  3,716  3,931  3,438 
    Bank owned life insurance income 1,776 1,568  1,528  1,878  1,419 
    Net securities gains (losses) 507 (183) (4,641) (4,998) (217)
    Other 2,643 2,913  2,626  2,656  2,217 
    Total noninterest income$ 38,488$40,236 $32,045 $31,409 $34,091 
    Noninterest expense     
    Salaries and employee benefits$ 50,013$49,248 $46,834 $48,155 $47,235 
    Technology and data services 10,174 9,677  9,305  9,007  9,124 
    Occupancy 7,175 7,090  6,923  7,220  6,521 
    Professional fees and outside services 5,115 4,149  4,159  4,178  4,811 
    Office supplies and postage 1,913 1,700  1,676  1,628  1,699 
    FDIC assessment 1,860 1,657  1,344  1,396  798 
    Advertising 1,213 667  525  649  879 
    Amortization of intangible assets 2,131 1,609  458  536  538 
    Loan collection and other real estate owned, net 503 569  691  855  957 
    Reserve for unfunded loan commitments 300 460  (100) (630) (185)
    Impairment of a minority interest equity investment 4,750 -  -  -  - 
    Acquisition expenses 254 7,917  1,189  618  967 
    Other 7,350 6,054  5,790  5,710  6,165 
    Total noninterest expense$ 92,751$90,797 $78,794 $79,322 $79,509 
    Income before income tax expense$ 39,784$31,701 $38,730 $43,244 $46,684 
    Income tax expense 9,338 7,095  8,658  9,586  10,563 
    Net income$ 30,446$24,606 $30,072 $33,658 $36,121 
    Earnings Per Share     
    Basic$ 0.65$0.54 $0.70 $0.78 $0.84 
    Diluted$ 0.64$0.54 $0.70 $0.78 $0.84 
          



    NBT Bancorp Inc. and Subsidiaries           
    Average Quarterly Balance Sheets           
    (unaudited, dollars in thousands)           
                
      Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates    		Average
    Balance    		Yield /
    Rates
      Q4 - 2023Q3 - 2023Q2 - 2023Q1 - 2023Q4 - 2022
    Assets           
    Short-term interest-bearing accounts $ 319,9075.59%$121,3844.26%$28,4733.62%$34,2152.26%$39,5733.31%
    Securities taxable1  2,310,4091.88% 2,364,8091.90% 2,394,0271.90% 2,442,7321.92% 2,480,9591.88%
    Securities tax-exempt 1 5  232,5753.51% 219,4273.34% 201,4992.83% 202,3212.81% 208,2382.68%
    FRB and FHLB stock  47,9948.98% 53,8416.76% 51,4547.12% 41,1444.45% 32,9034.11%
    Loans1 6  9,653,1915.47% 9,043,5825.36% 8,307,8945.17% 8,189,5205.00% 8,039,4424.72%
    Total interest-earning assets $ 12,564,0764.79%$11,803,0434.63%$10,983,3474.42%$10,909,9324.26%$10,801,1154.02%
    Other assets  1,052,024  968,220  835,424  836,879  855,410 
    Total assets $ 13,616,100 $12,771,263 $11,818,771 $11,746,811 $11,656,525 
    Liabilities and stockholders' equity           
    Money market deposit accounts $ 3,045,5313.43%$2,422,4512.91%$2,113,9652.30%$2,081,2101.22%$2,169,1920.39%
    NOW deposit accounts  1,645,4010.80% 1,513,4200.57% 1,463,9530.38% 1,598,8340.36% 1,604,0960.33%
    Savings deposits  1,666,9150.04% 1,707,0940.04% 1,708,8740.03% 1,781,4650.03% 1,823,0560.03%
    Time deposits  1,343,5483.81% 1,178,3523.60% 856,3052.97% 639,6452.10% 432,1100.41%
    Total interest-bearing deposits $ 7,701,3952.20%$6,821,3171.79%$6,143,0971.30%$6,101,1540.74%$6,028,4540.27%
    Federal funds purchased  2175.48% 6,0335.39% 48,4075.35% 44,3344.92% 56,5764.03%
    Repurchase agreements  82,3871.59% 71,5161.40% 55,6271.08% 71,3400.08% 76,3340.11%
    Short-term borrowings  345,2505.31% 540,3805.34% 557,8185.27% 357,2004.96% 177,5334.28%
    Long-term debt  29,8093.91% 29,8003.91% 29,7733.91% 7,2992.61% 3,8172.18%
    Subordinated debt, net  119,5315.96% 109,1605.86% 97,0815.52% 96,9665.58% 97,8395.46%
    Junior subordinated debt  101,1967.64% 101,1967.54% 101,1967.00% 101,1966.74% 101,1965.58%
    Total interest-bearing liabilities $ 8,379,7852.45%$7,679,4022.18%$7,032,9991.80%$6,779,4891.14%$6,541,7490.57%
    Demand deposits  3,535,815  3,498,424  3,316,955  3,502,489  3,658,965 
    Other liabilities  326,857  287,751  251,511  274,517  290,895 
    Stockholders' equity  1,373,643  1,305,686  1,217,306  1,190,316  1,164,916 
    Total liabilities and stockholders' equity $ 13,616,100 $12,771,263 $11,818,771 $11,746,811 $11,656,525 
    Interest rate spread  2.34% 2.45% 2.62% 3.12% 3.45%
    Net interest margin (FTE)1  3.15% 3.21% 3.27% 3.55% 3.68%
                



    NBT Bancorp Inc. and Subsidiaries       
    Average Year-to-Date Balance Sheets      
    (unaudited, dollars in thousands)       
            
      Average Yield/Average Yield/
      BalanceInterestRates BalanceInterestRates
    Twelve Months Ended December 31, 20232022
    Assets       
    Short-term interest-bearing accounts $ 126,765$ 6,2594.94%$440,429$3,0720.70%
    Securities taxable1  2,377,596 45,1761.90% 2,424,925 43,2291.78%
    Securities tax-exempt1 5  214,053 6,7303.14% 233,515 5,0702.17%
    FRB and FHLB stock  48,641 3,3686.92% 27,040 9953.68%
    Loans1 6  8,803,228 463,2905.26% 7,772,962 333,0084.28%
    Total interest-earning assets $ 11,570,283$ 524,8234.54%$10,898,871$385,3743.54%
    Other assets  923,850   893,197  
    Total assets $ 12,494,133  $11,792,068  
    Liabilities and stockholders' equity       
    Money market deposit accounts $ 2,418,450$ 62,4752.58%$2,447,978$4,9550.20%
    NOW deposit accounts  1,555,414 8,2980.53% 1,578,831 2,6000.16%
    Savings deposits  1,715,749 6500.04% 1,829,360 5920.03%
    Time deposits  1,006,867 33,2183.30% 464,912 1,7760.38%
    Total interest-bearing deposits $ 6,696,480$ 104,6411.56%$6,321,081$9,9230.16%
    Federal funds purchased  24,575 1,2695.16% 14,644 5884.02%
    Repurchase agreements  70,251 7471.06% 69,561 670.10%
    Short-term borrowings  450,377 23,5925.24% 46,371 1,9684.24%
    Long-term debt  24,247 9253.81% 6,579 1612.45%
    Subordinated debt, net  105,756 6,0765.75% 98,439 5,4245.51%
    Junior subordinated debt  101,196 7,3207.23% 101,196 3,7493.70%
    Total interest-bearing liabilities $ 7,472,882$ 144,5701.93%$6,657,871$21,8800.33%
    Demand deposits  3,463,608   3,696,957  
    Other liabilities  285,310   237,857  
    Stockholders' equity  1,272,333   1,199,383  
    Total liabilities and stockholders' equity $ 12,494,133  $11,792,068  
    Net interest income (FTE)1  $ 380,253  $363,494 
    Interest rate spread   2.61%  3.21%
    Net interest margin (FTE)1   3.29%  3.34%
    Taxable equivalent adjustment  $ 2,034  $1,304 
    Net interest income  $ 378,219  $362,190 
            


           
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: 
           
     Non-GAAP measures     
     (unaudited, dollars in thousands)     
           
      20232022
      4th Q3rd Q2nd Q1st Q4th Q
     Operating net income     
     Net income$ 30,446 $24,606 $30,072 $33,658 $36,121 
     Acquisition expenses 254  7,917  1,189  618  967 
     Acquisition-related provision for credit losses -  8,750  -  -  - 
     Acquisition-related reserve for unfunded loan commitments -  836  -  -  - 
     Impairment of a minority interest equity investment 4,750  -  -  -  - 
     Securities (gains) losses (507) 183  4,641  4,998  217 
     Adjustment to net income$ 4,497 $17,686 $5,830 $5,616 $1,184 
     Adjustment to net income (net of tax)$ 3,435 $13,730 $4,525 $4,341 $913 
     Operating net income$ 33,881 $38,336 $34,597 $37,999 $37,034 
     Operating diluted earnings per share$ 0.72 $0.84 $0.80 $0.88 $0.86 
           
      12 Months Ended December 31,   
       2023  2022    
     Operating net income     
     Net income$ 118,782 $151,995    
     Acquisition expenses 9,978  967    
     Acquisition-related provision for credit losses 8,750  -    
     Acquisition-related reserve for unfunded loan commitments 836  -    
     Impairment of a minority interest equity investment 4,750  -    
     Securities losses 9,315  1,131    
     Adjustment to net income$ 33,629 $2,098    
     Adjustment to net income (net of tax)$ 25,965 $1,623    
     Operating net income$ 144,747 $153,618    
     Operating diluted earnings per share$ 3.23 $3.56    
           
      20232022
      4th Q3rd Q2nd Q1st Q4th Q
     FTE adjustment     
     Net interest income$ 99,173 $94,895 $89,085 $95,066 $99,779 
     Add: FTE adjustment 669  568  402  395  392 
     Net interest income (FTE)$ 99,842 $95,463 $89,487 $95,461 $100,171 
     Average earning assets$ 12,564,076 $11,803,043 $10,983,347 $10,909,932 $10,801,115 
     Net interest margin (FTE)3 3.15% 3.21% 3.27% 3.55% 3.68%
           
      12 Months Ended December 31,   
       2023  2022    
     FTE adjustment     
     Net interest income$ 378,219 $362,190    
     Add: FTE adjustment 2,034  1,304    
     Net interest income (FTE)$ 380,253 $363,494    
     Average earning assets$ 11,570,283 $10,898,871    
     Net interest margin (FTE) 3.29% 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%.


           
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures (continued)     
     (unaudited, dollars in thousands)     
           
      20232022
      4th Q3rd Q2nd Q1st Q4th Q
     Tangible equity to tangible assets     
     Total equity$ 1,425,691 $1,362,821 $1,210,493 $1,211,659 $1,173,554 
     Intangible assets 402,294  402,745  287,701  288,159  288,545 
     Total assets$ 13,309,040 $13,827,628 $11,890,497 $11,839,730 $11,739,296 
     Tangible equity to tangible assets 7.93% 7.15% 7.95% 7.99% 7.73%
           
      20232022
      4th Q3rd Q2nd Q1st Q4th Q
     Return on average tangible common equity    
     Net income$ 30,446 $24,606 $30,072 $33,658 $36,121 
     Amortization of intangible assets (net of tax) 1,599  1,206  344  402  404 
     Net income, excluding intangibles amortization$ 32,045 $25,812 $30,416 $34,060 $36,525 
           
     Average stockholders' equity$ 1,373,643 $1,305,686 $1,217,306 $1,190,316 $1,164,916 
     Less: average goodwill and other intangibles 401,978  350,912  287,974  288,354  288,856 
     Average tangible common equity$ 971,665 $954,774 $929,332 $901,962 $876,060 
     Return on average tangible common equity3 13.08% 10.73% 13.13% 15.31% 16.54%
           
      12 Months Ended December 31,   
       2023  2022    
     Return on average tangible common equity    
     Net income$ 118,782 $151,995    
     Amortization of intangible assets (net of tax) 3,551  1,698    
     Net income, excluding intangibles amortization$ 122,333 $153,693    
           
     Average stockholders' equity$ 1,272,333 $1,199,383    
     Less: average goodwill and other intangibles 332,667  289,238    
     Average tangible common equity$ 939,666 $910,145    
     Return on average tangible common equity 13.02% 16.89%   
           
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
    3Annualized.     
    4Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    5Securities are shown at average amortized cost.    
    6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.


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

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