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

    Source: Nasdaq GlobeNewswire / 28 Oct 2024 15:15:01   America/Chicago

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

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

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

    CEO Comments

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

    Third Quarter 2024 Financial Highlights

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


    Loans

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

    Deposits

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

    Net Interest Income and Net Interest Margin

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

    Asset Quality and Allowance for Loan Losses

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

    Noninterest Income

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

    Noninterest Expense

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

    Income Taxes

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

    Capital

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

    Dividend

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

    Stock Repurchase

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

    Evans Bancorp, Inc. Merger

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

    Conference Call and Webcast

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

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $13.84 billion at September 30, 2024. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 155 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtbank.com/Insurance.

    Forward-Looking Statements

    This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rates, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) governmental approvals of the Evans merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (14) the shareholders of Evans may fail to approve the merger; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) changes in the Company’s organization, compensation and benefit plans; (20) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) the Company’s success at managing the risks involved in the foregoing items.

    The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

    Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Non-GAAP Measures

    This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

    Contact:Scott A. Kingsley, President and CEO
    Annette L. Burns, Executive Vice President and CFO
    NBT Bancorp Inc.
    52 South Broad Street
    Norwich, NY 13815
    607-337-6589


    NBT Bancorp Inc. and Subsidiaries     
    Selected Financial Data     
    (unaudited, dollars in thousands except per share data)    
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Profitability (reported)     
    Diluted earnings per share$ 0.80 $0.69 $0.71 $0.64 $0.54 
    Weighted average diluted common shares outstanding 47,473,417  47,382,814  47,370,145  47,356,899  45,398,937 
    Return on average assets(3) 1.12% 0.98% 1.02% 0.89% 0.76%
    Return on average equity(3) 10.21% 9.12% 9.52% 8.79% 7.48%
    Return on average tangible common equity(1)(3) 14.54% 13.23% 13.87% 13.08% 10.73%
    Net interest margin(1)(3) 3.27% 3.18% 3.14% 3.15% 3.21%
          
     9 Months Ended September 30,   
      2024  2023    
    Profitability (reported)     
    Diluted earnings per share$ 2.21 $2.01    
    Weighted average diluted common shares outstanding 47,409,906  43,896,042    
    Return on average assets(3) 1.04% 0.97%   
    Return on average equity(3) 9.62% 9.54%   
    Return on average tangible common equity(1)(3) 13.89% 13.00%   
    Net interest margin(1)(3) 3.20% 3.34%   
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Profitability (operating)     
    Diluted earnings per share(1)$ 0.80 $0.69 $0.68 $0.72 $0.84 
    Return on average assets(1)(3) 1.12% 0.98% 0.97% 0.99% 1.19%
    Return on average equity(1)(3) 10.23% 9.14% 9.04% 9.79% 11.65%
    Return on average tangible common equity(1)(3) 14.56% 13.26% 13.20% 14.49% 16.43%
          
     9 Months Ended September 30,   
      2024  2023    
    Profitability (operating)     
    Diluted earnings per share(1)$ 2.17 $2.53    
    Return on average assets(1)(3) 1.03% 1.22%   
    Return on average equity(1)(3) 9.48% 11.98%   
    Return on average tangible common equity(1)(3) 13.69% 16.25%   
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Balance sheet data     
    Short-term interest-bearing accounts$ 231,671 $35,207 $156,632 $31,378 $459,296 
    Securities available for sale 1,509,338  1,439,445  1,418,471  1,430,858  1,399,032 
    Securities held to maturity 854,941  878,909  890,863  905,267  914,520 
    Net loans 9,787,541  9,733,847  9,572,777  9,536,313  9,552,774 
    Total assets 13,839,552  13,501,909  13,439,199  13,309,040  13,827,628 
    Total deposits 11,588,278  11,271,459  11,195,289  10,968,994  11,401,452 
    Total borrowings 456,666  476,082  518,190  637,387  740,603 
    Total liabilities 12,317,572  12,039,954  11,997,784  11,883,349  12,464,807 
    Stockholders' equity 1,521,980  1,461,955  1,441,415  1,425,691  1,362,821 
          
    Capital     
    Equity to assets 11.00% 10.83% 10.73% 10.71% 9.86%
    Tangible equity ratio(1) 8.36% 8.11% 7.98% 7.93% 7.15%
    Book value per share$ 32.26 $31.00 $30.57 $30.26 $28.94 
    Tangible book value per share(2)$ 23.83 $22.54 $22.07 $21.72 $20.39 
    Leverage ratio 10.29% 10.16% 10.09% 9.71% 10.23%
    Common equity tier 1 capital ratio 11.86% 11.70% 11.68% 11.57% 11.31%
    Tier 1 capital ratio 12.77% 12.61% 12.61% 12.50% 12.23%
    Total risk-based capital ratio 15.02% 14.88% 14.87% 14.75% 14.45%
    Common stock price (end of period)$ 44.23 $38.60 $36.68 $41.91 $31.69 
          


    NBT Bancorp Inc. and Subsidiaries     
    Asset Quality and Consolidated Loan Balances     
    (unaudited, dollars in thousands)     
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Asset quality     
    Nonaccrual loans$ 33,338 $34,755 $35,189 $34,213 $20,736 
    90 days past due and still accruing 3,981  3,333  2,600  3,661  3,528 
    Total nonperforming loans 37,319  38,088  37,789  37,874  24,264 
    Other real estate owned 127  74  -  -  - 
    Total nonperforming assets 37,446  38,162  37,789  37,874  24,264 
    Allowance for loan losses 119,500  120,500  115,300  114,400  114,601 
          
    Asset quality ratios     
    Allowance for loan losses to total loans 1.21% 1.22% 1.19% 1.19% 1.19%
    Total nonperforming loans to total loans 0.38% 0.39% 0.39% 0.39% 0.25%
    Total nonperforming assets to total assets 0.27% 0.28% 0.28% 0.28% 0.18%
    Allowance for loan losses to total nonperforming loans 320.21% 316.37% 305.12% 302.05% 472.31%
    Past due loans to total loans(4) 0.36% 0.30% 0.33% 0.32% 0.49%
    Net charge-offs to average loans(3) 0.16% 0.15% 0.19% 0.22% 0.18%
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Loan net charge-offs by line of business     
    Commercial$ 807 $(8)$772 $1,107 $(344)
    Residential real estate and home equity (64) (76) (32) 11  (75)
    Indirect auto 725  747  665  399  451 
    Residential solar 1,599  1,610  1,211  1,081  1,253 
    Other consumer 853  1,426  2,063  2,729  2,919 
    Total loan net charge-offs$ 3,920 $3,699 $4,679 $5,327 $4,204 
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Allowance for loan losses as a percentage of loans by segment    
    Commercial & industrial 0.73% 0.76% 0.79% 0.84% 0.87%
    Commercial real estate 1.01% 1.00% 0.97% 0.99% 1.00%
    Residential real estate 1.00% 0.98% 0.89% 0.84% 0.79%
    Auto 0.83% 0.85% 0.81% 0.83% 0.82%
    Residential solar 3.70% 3.76% 3.58% 3.28% 3.19%
    Other consumer 3.51% 4.09% 4.24% 4.70% 5.23%
    Total 1.21% 1.22% 1.19% 1.19% 1.19%
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Loans by line of business     
    Commercial & industrial$ 1,458,926 $1,397,935 $1,353,446 $1,354,248 $1,424,579 
    Commercial real estate 3,792,498  3,784,214  3,646,739  3,626,910  3,575,595 
    Residential real estate 2,143,766  2,134,875  2,133,289  2,125,804  2,111,670 
    Home equity 328,687  326,556  328,673  337,214  340,777 
    Indirect auto 1,235,175  1,225,786  1,190,734  1,130,132  1,099,558 
    Residential solar 839,659  861,883  896,147  917,755  934,082 
    Other consumer 108,330  123,098  139,049  158,650  181,114 
    Total loans$ 9,907,041 $9,854,347 $9,688,077 $9,650,713 $9,667,375 
          


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


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


    NBT Bancorp Inc. and Subsidiaries     
    Quarterly Consolidated Statements of Income     
    (unaudited, in thousands except per share data)     
          
      2024  2023 
     3rd Q2nd Q1st Q4th Q3rd Q
    Interest, fee and dividend income     
    Interest and fees on loans$ 141,991$136,606 $133,146 $132,738$122,097 
    Securities available for sale 7,815 7,562  7,124  7,208 7,495 
    Securities held to maturity 5,042 5,190  5,303  5,374 5,281 
    Other 1,382 1,408  1,364  5,594 2,221 
    Total interest, fee and dividend income$ 156,230$150,766 $146,937 $150,914$137,094 
    Interest expense     
    Deposits$ 49,106$46,688 $44,339 $42,753$30,758 
    Short-term borrowings 1,431 2,899  3,421  4,951 7,612 
    Long-term debt 292 291  290  294 294 
    Subordinated debt 1,810 1,806  1,800  1,795 1,612 
    Junior subordinated debt 1,922 1,908  1,913  1,948 1,923 
    Total interest expense$ 54,561$53,592 $51,763 $51,741$42,199 
    Net interest income$ 101,669$97,174 $95,174 $99,173$94,895 
    Provision for loan losses$ 2,920$8,899 $5,579 $5,126$3,883 
    Provision for loan losses - acquisition day 1 non-PCD - -  -  - 8,750 
    Total provision for loan losses$ 2,920$8,899 $5,579 $5,126$12,633 
    Net interest income after provision for loan losses$ 98,749$88,275 $89,595 $94,047$82,262 
    Noninterest income     
    Service charges on deposit accounts$ 4,340$4,219 $4,117 $4,165$3,979 
    Card services income 5,897 5,587  5,195  5,360 5,503 
    Retirement plan administration fees 14,578 14,798  14,287  11,226 12,798 
    Wealth management 10,929 10,173  9,697  9,152 9,297 
    Insurance services 4,913 3,848  4,388  3,659 4,361 
    Bank owned life insurance income 1,868 1,834  2,352  1,776 1,568 
    Net securities gains (losses) 476 (92) 2,183  507 (183)
    Other 2,773 2,865  3,173  2,643 2,913 
    Total noninterest income$ 45,774$43,232 $45,392 $38,488$40,236 
    Noninterest expense     
    Salaries and employee benefits$ 59,641$55,393 $55,704 $50,013$49,248 
    Technology and data services 9,920 9,249  9,750  10,174 9,677 
    Occupancy 7,754 7,671  8,098  7,175 7,090 
    Professional fees and outside services 4,871 4,565  4,853  5,115 4,149 
    Amortization of intangible assets 2,062 2,133  2,168  2,131 1,609 
    Reserve for unfunded loan commitments 250 (380) (450) 300 460 
    Impairment of a minority interest equity investment - -  -  4,750 - 
    Acquisition expenses 543 -  -  254 7,917 
    Other 10,704 10,957  11,650  12,839 10,647 
    Total noninterest expense$ 95,745$89,588 $91,773 $92,751$90,797 
    Income before income tax expense$ 48,778$41,919 $43,214 $39,784$31,701 
    Income tax expense 10,681 9,203  9,391  9,338 7,095 
       Net income$ 38,097$32,716 $33,823 $30,446$24,606 
    Earnings Per Share     
    Basic$ 0.81$0.69 $0.72 $0.65$0.54 
    Diluted$ 0.80$0.69 $0.71 $0.64$0.54 
          


    NBT Bancorp Inc. and Subsidiaries           
    Average Quarterly Balance Sheets           
    (unaudited, dollars in thousands)           
                
      Average BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / Rates
      Q3 - 2024Q2 - 2024Q1 - 2024Q4 - 2023Q3 - 2023
    Assets           
    Short-term interest-bearing accounts $ 62,2104.87%$48,8615.48%$47,9724.48%$319,9075.59%$121,3844.26%
    Securities taxable(1)  2,266,9301.99% 2,280,7671.97% 2,278,0291.91% 2,310,4091.88% 2,364,8091.90%
    Securities tax-exempt(1)(5)  217,2513.47% 226,0323.56% 230,4683.58% 232,5753.51% 219,4273.34%
    FRB and FHLB stock  35,3956.97% 40,2837.41% 42,2967.89% 47,9948.98% 53,8416.76%
    Loans(1)(6)  9,865,4125.74% 9,772,0145.63% 9,674,8925.54% 9,653,1915.47% 9,043,5825.36%
    Total interest-earning assets $ 12,447,1985.01%$12,367,9574.92%$12,273,6574.84%$12,564,0764.79%$11,803,0434.63%
    Other assets  1,072,277  1,064,487  1,055,386  1,052,024  968,220 
    Total assets $ 13,519,475 $13,432,444 $13,329,043 $13,616,100 $12,771,263 
    Liabilities and stockholders' equity           
    Money market deposit accounts $ 3,342,8453.68%$3,254,2523.65%$3,129,1603.56%$3,045,5313.43%$2,422,4512.91%
    NOW deposit accounts  1,600,5470.87% 1,603,6950.78% 1,600,2880.75% 1,645,4010.80% 1,513,4200.57%
    Savings deposits  1,566,3160.05% 1,586,7530.05% 1,607,6590.04% 1,666,9150.04% 1,707,0940.04%
    Time deposits  1,442,4244.00% 1,391,0624.00% 1,352,5594.00% 1,343,5483.81% 1,178,3523.60%
    Total interest-bearing deposits $ 7,952,1322.46%$7,835,7622.40%$7,689,6662.32%$7,701,3952.20%$6,821,3171.79%
    Federal funds purchased  2,6095.34% 29,9455.56% 19,7695.53% 2175.48% 6,0335.39%
    Repurchase agreements  98,0352.80% 86,4051.55% 82,4191.55% 82,3871.59% 71,5161.40%
    Short-term borrowings  48,8755.74% 155,1595.58% 213,3905.34% 345,2505.31% 540,3805.34%
    Long-term debt  29,6963.91% 29,7343.94% 29,7723.92% 29,8093.91% 29,8003.91%
    Subordinated debt, net  120,5945.97% 120,2396.04% 119,8736.04% 119,5315.96% 109,1605.86%
    Junior subordinated debt  101,1967.56% 101,1967.58% 101,1967.60% 101,1967.64% 101,1967.54%
    Total interest-bearing liabilities $ 8,353,1372.60%$8,358,4402.58%$8,256,0852.52%$8,379,7852.45%$7,679,4022.18%
    Demand deposits  3,389,894  3,323,906  3,356,607  3,535,815  3,498,424 
    Other liabilities  292,446  306,747  286,749  326,857  287,751 
    Stockholders' equity  1,483,998  1,443,351  1,429,602  1,373,643  1,305,686 
    Total liabilities and stockholders' equity $ 13,519,475 $13,432,444 $13,329,043 $13,616,100 $12,771,263 
    Interest rate spread  2.41% 2.34% 2.32% 2.34% 2.45%
    Net interest margin (FTE)(1)  3.27% 3.18% 3.14% 3.15% 3.21%
                


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


    (1)The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release: 
           
     Non-GAAP measures     
     (unaudited, dollars in thousands except per share data)     
           
       2024  2023 
      3rd Q2nd Q1st Q4th Q3rd Q
     Operating net income     
     Net income$ 38,097 $32,716 $33,823 $30,446 $24,606 
     Acquisition expenses 543  -  -  254  7,917 
     Acquisition-related provision for credit losses -  -  -  -  8,750 
     Acquisition-related reserve for unfunded loan commitments -  -  -  -  836 
     Impairment of a minority interest equity investment -  -  -  4,750  - 
     Securities (gains) losses (476) 92  (2,183) (507) 183 
     Adjustments to net income$ 67 $92 $(2,183)$4,497 $17,686 
     Adjustments to net income (net of tax)$ 52 $72 $(1,703)$3,435 $13,730 
     Operating net income$ 38,149 $32,788 $32,120 $33,881 $38,336 
     Operating diluted earnings per share$ 0.80 $0.69 $0.68 $0.72 $0.84 
           
      9 Months Ended September 30,   
       2024  2023    
     Operating net income     
     Net income$ 104,636 $88,336    
     Acquisition expenses 543  9,724    
     Acquisition-related provision for credit losses -  8,750    
     Acquisition-related reserve for unfunded loan commitments -  836    
     Securities (gains) losses (2,567) 9,822    
     Adjustments to net income$ (2,024)$29,132    
     Adjustments to net income (net of tax)$ (1,579)$22,577    
     Operating net income$ 103,057 $110,913    
     Operating diluted earnings per share$ 2.17 $2.53    
           
       2024  2023 
      3rd Q2nd Q1st Q4th Q3rd Q
     FTE adjustment     
     Net interest income$ 101,669 $97,174 $95,174 $99,173 $94,895 
     Add: FTE adjustment 639  658  658  669  568 
     Net interest income (FTE)$ 102,308 $97,832 $95,832 $99,842 $95,463 
     Average earning assets$ 12,447,198 $12,367,957 $12,273,657 $12,564,076 $11,803,043 
     Net interest margin (FTE)(3) 3.27% 3.18% 3.14% 3.15% 3.21%
           
      9 Months Ended September 30,   
       2024  2023    
     FTE adjustment     
     Net interest income$ 294,017 $279,046    
     Add: FTE adjustment 1,955  1,365    
     Net interest income (FTE)$ 295,972 $280,411    
     Average earning assets$ 12,363,245 $11,235,379    
     Net interest margin (FTE)(3) 3.20% 3.34%   
           
     Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.


           
    (1)The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures (continued)     
     (unaudited, dollars in thousands)     
           
       2024  2023 
      3rd Q2nd Q1st Q4th Q3rd Q
     Tangible equity to tangible assets     
     Total equity$ 1,521,980 $1,461,955 $1,441,415 $1,425,691 $1,362,821 
     Intangible assets 397,853  398,686  400,819  402,294  402,745 
     Total assets$ 13,839,552 $13,501,909 $13,439,199 $13,309,040 $13,827,628 
     Tangible equity to tangible assets 8.36% 8.11% 7.98% 7.93% 7.15%
           
       2024  2023 
      3rd Q2nd Q1st Q4th Q3rd Q
     Return on average tangible common equity    
     Net income$ 38,097 $32,716 $33,823 $30,446 $24,606 
     Amortization of intangible assets (net of tax) 1,547  1,600  1,626  1,599  1,206 
     Net income, excluding intangibles amortization$ 39,644 $34,316 $35,449 $32,045 $25,812 
           
     Average stockholders' equity$ 1,483,998 $1,443,351 $1,429,602 $1,373,643 $1,305,686 
     Less: average goodwill and other intangibles 399,113  399,968  401,756  401,978  350,912 
     Average tangible common equity$ 1,084,885 $1,043,383 $1,027,846 $971,665 $954,774 
     Return on average tangible common equity(3) 14.54% 13.23% 13.87% 13.08% 10.73%
           
      9 Months Ended September 30,   
       2024  2023    
     Return on average tangible common equity    
     Net income$ 104,636 $88,336    
     Amortization of intangible assets (net of tax) 4,772  1,952    
     Net income, excluding intangibles amortization$ 109,408 $90,288    
           
     Average stockholders' equity$ 1,452,433 $1,238,192    
     Less: average goodwill and other intangibles 400,275  309,309    
     Average tangible common equity$ 1,052,158 $928,883    
     Return on average tangible common equity(3) 13.89% 13.00%   
           
    (2)Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
    (3)Annualized.     
    (4)Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    (5)Securities are shown at average amortized cost.    
    (6)For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
           

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


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