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NBT Bancorp Inc. Announces First Quarter Net Income of $39.8 Million ($0.91 Per Diluted Common Share); Approves Dividend

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NORWICH, N.Y., April 26, 2021 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2021.

Net income for the three months ended March 31, 2021 was $39.8 million, or $0.91 per diluted common share. Net income increased $5.7 million from the previous quarter primarily due to lower provision for loan losses and branch optimization charges recognized in the previous quarter. Net income increased $29.5 million from the first quarter of 2020 due to the adoption of the Current Expected Credit Losses (“CECL”) accounting methodology, including the estimated impact of the COVID-19 pandemic on expected credit losses, which resulted in first quarter 2020 provision for loan losses of $29.6 million.

Pre-provision net revenue (“PPNR”)1 for the first quarter of 2021 was $47.5 million compared to $48.2 million in the previous quarter and $44.9 million in the first quarter of 2020.

CEO Comments

“The results for the first quarter of 2021 demonstrate the resiliency of our banking platform. We drove commercial loan growth and experienced increased levels of consumer activity. Our mortgage pipeline is strong, and our indirect auto business exceeded production targets,” said NBT President and CEO John H. Watt, Jr. “We are optimistic about the prospects for the rest of the year driven by pent up demand and a snap back in many sectors of the economy that we anticipate will occur as the markets we serve continue to open up. Sustained levels of excellent credit quality allow for plenty of optionality in the deployment of capital which will drive growth. Record Assets Under Management and Administration in our wealth management business exceeded $9 billion. Finally, we leaned heavily into the Paycheck Protection Program in the latest round of funding to support the Main Street businesses and non-profits that are the backbone of the communities we serve.”

First Quarter Financial Highlights

Net Income

Net Interest Income / NIM

PPNR

Loans and Credit Quality

Capital

Loans

  • Period end total loans were $7.6 billion at March 31, 2021 and $7.5 billion at December 31, 2020.

  • Excluding PPP loans, period end loans increased $28.9 million from December 31, 2020. Commercial and industrial loans increased $3.6 million to $1.3 billion; commercial real estate loans increased $57.5 million to $2.4 billion; and total consumer loans decreased $32.2 million to $3.4 billion.

  • Total PPP loans as of March 31, 2021 were $536 million (net of unamortized fees). The following activity occurred during the first quarter of 2021:

    • $250 million in originations

    • $132.8 million of loans forgiven

    • $6.2 million recognized into interest income

  • Commercial line of credit utilization rate was 22% at March 31, 2021 consistent with 22% at December 31, 2020 and compared to 32% at March 31, 2020.

Deposits

  • Average total deposits in the first quarter of 2021 were $9.3 billion, compared to $9.1 billion in the fourth quarter of 2020, driven by increases in non-interest bearing demand deposit accounts and savings deposit accounts.

  • Loan to deposit ratio was 77.8% at March 31, 2021, compared to 82.6% at December 31, 2020.

Net Interest Income and Net Interest Margin

  • Net interest income for the first quarter of 2021 was $79.1 million, down $1.1 million or 1.3% from the fourth quarter of 2020 and up $1.9 million or 2.4% from the first quarter of 2020.

  • The NIM on a fully taxable equivalent (“FTE”) basis for the first quarter of 2021 was 3.17%, down 3 bps from the fourth quarter of 2020 and down 35 bps from the first quarter of 2020. The net impact of PPP loans and excess liquidity impacted the NIM by 8 bps in the both the first quarter and fourth quarter of 2020. Excluding the impact of PPP lending and excess liquidity from each quarter, the NIM decreased 3 bps from the prior quarter primarily due to an 8 bps decline in earning asset yields partially offset by a 6 bps decline in the cost of interest bearing liabilities and a $141 million increase in average checking deposit account balances during the quarter.

  • Earning asset yields for the three months ended March 31, 2021 were down 8 bps from the prior quarter and down 69 bps from the same quarter in the prior year. Earning assets grew $155.5 million or 1.6% from the prior quarter and grew $1.3 billion or 14.4% from the same quarter in the prior year. The following are highlights from the prior quarter:

    • Excess liquidity resulted in a $34.8 million increase in the average balances of short-term interest bearing accounts.

    • The average balance of investment securities increased $83.0 million while yields declined 6 bps.

    • Loan yields decreased 4 bps to 4.02% for the quarter. Excluding PPP loans, yields decreased 7 bps from the prior quarter driven by a 12 bps yield reduction in the commercial loan portfolio.

  • Total cost of deposits was 0.14% for the first quarter of 2021, down 3 bps from the prior quarter and down 34 bps from the same period in the prior year.

  • The cost of interest-bearing liabilities for the three months ended March 31, 2021 was 0.34%, down 6 bps compared to the prior quarter of 0.40% and down 48 bps from the first quarter of 2020 of 0.82%.

    • Cost of interest-bearing deposits decreased 5 bps from the prior quarter and decreased 48 bps from the same quarter in 2020.

Credit Quality and Allowance for Credit Losses

  • Net charge-offs to total average loans of 12 bps (13 bps excluding PPP loans) compared to 21 bps (22 bps excluding PPP loans) in the prior quarter and 32 bps in the first quarter of 2020. The decrease in charge-offs during the first quarter of 2021 was primarily due to lower charge-offs in commercial and indirect auto, which continue to be at lower levels due to pandemic relief programs.

  • Nonperforming assets to total assets was 0.41% (0.43% excluding PPP loans) compared to 0.45% (0.47% excluding PPP loans) at December 31, 2020.

  • Provision expense for the three months ended March 31, 2021 was ($2.8) million and net charge-offs were $2.2 million. Provision expense decreased $2.2 million from the fourth quarter of 2020 and decreased $32.4 million from the first quarter of 2020. The decrease in provision expense from the prior quarter and first quarter of 2020 was primarily due to the reduction in the level of allowance for loan losses resulting from an improved economic forecast.

  • The allowance for loan losses was $105.0 million or 1.38% (1.48% excluding PPP loans and related allowance) of total loans compared to 1.47% (1.56% excluding PPP loans and related allowance) at December 31, 2020. The decrease in the level of allowance for credit losses was primarily due to the positive impact the forecasted improving economic conditions had on expected credit losses.

  • As of April 12, 2021, 1.0% of loans (loans outstanding as of March 31, 2021; excluding PPP balances) are in payment deferral programs which is down from the second quarter 2020 peak of 14.9%.

  • The reserve for unfunded loan commitments decreased to $5.9 million at March 31, 2021 compared to the prior quarter at $6.4 million.

Noninterest Income

  • Total noninterest income, excluding securities gains (losses), was $36.6 million for the three months ended March 31, 2021, down $1.4 million from the prior quarter and up $0.3 million from the prior year quarter.

  • Service charges on deposit accounts were lower than the prior quarter and lower than the first quarter of 2020. Overdraft charges have been lower during the COVID-19 pandemic.

  • ATM and debit card fees were comparable to the prior quarter and higher compared to the first quarter of 2020 due to increased volume and higher per transaction rates.

  • Retirement plan administration fees were higher than the prior quarter driven by market performance and organic growth, and higher than the first quarter of 2020 due to the April 1, 2020 acquisition of Alliance Benefit Group of Illinois, Inc. (“ABG”) contributing $1.7 million in revenues during the first quarter of 2021 and $1.5 million during the fourth quarter of 2020.

  • The decrease in other noninterest income from the prior quarter was primarily due to lower loan swap fee income and the decrease from the first quarter of 2020 was driven by lower loan swap fee income combined with lower mortgage banking income.

Noninterest Expense

  • Total noninterest expense for the first quarter of 2021 was down 9.7% from the previous quarter and down 4.2% from the first quarter of 2020, primarily due to $4.1 million in branch optimization costs incurred during the fourth quarter of 2020.

  • Salaries and benefits increased from the prior quarter due to seasonally higher payroll taxes and stock-based compensation expenses and increased from the first quarter of 2020 driven by the addition of ABG’s salaries and benefits.

  • Data processing and communications increased from the prior quarter and the first quarter of 2020 driven by charges related to the addition of a digitized PPP platform.

  • Professional fees and outside services decreased from the prior quarter due to timing of initiatives.

  • Other expenses decreased $7.4 million from the prior quarter due to $4.1 million in branch optimization charges recognized in the prior quarter, a $1.4 million decrease in the provision for the reserve for unfunded commitments, lower travel training expenses and lower pension costs. The decrease from the first quarter of 2020 was due to a $2.5 million decrease in the reserve for unfunded commitments, lower travel training expenses during the COVID-19 pandemic and lower pension costs.

Income Taxes

  • The effective tax rate was 21.9% for the first quarter of 2021 compared to 21.6% for the fourth quarter of 2020 and 14.2% for the first quarter of 2020. The increase from the first quarter of 2020 was due to a higher level of taxable income relative to total income.

Capital

  • Capital ratios remain strong with tangible common equity to tangible assets1 at 8.00%. Tangible book value per share2 grew 1% from the prior quarter and 9% from the prior year quarter to $20.71.

  • March 31, 2021 CET1 capital ratio of 12.13%, leverage ratio of 9.60 % and total risk-based capital ratio of 15.92 %.

Stock Repurchase and Dividend

  • The Company purchased 257,031 shares of common stock during the first quarter of 2021 at a weighted average price of $35.09 excluding commissions. As of March 31, 2021, there were 1,742,969 shares available for repurchase under this plan, which expires on December 31, 2021.

  • The Board of Directors approved a second-quarter cash dividend of $0.27 per share at a meeting held today. The dividend will be paid on June 15, 2021 to shareholders of record as of June 1, 2021.

Conference Call and Webcast

The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 27, 2021, to review first quarter 2021 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://stockholderinfo.nbtbancorp.com/events-calendar/upcoming-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 $11.5 billion at March 31, 2021. 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 141 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine, and is currently entering Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a full-service 401(k) plan recordkeeping 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 news 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 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 or terrorism; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (9) changes in consumer spending, borrowings and savings habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisitions 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, Economic Growth, Regulatory Relief, Consumer Protection Act of 2018, Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), and other legislative and regulatory responses to the coronavirus (“COVID-19”) pandemic; (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 (“FASB”) 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; (20) the adverse impact on the U.S. economy, including the markets in which we operate, of the novel coronavirus, which causes COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the Company’s forward-looking statements is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company, its customers and the global economy and financial markets. The extent to which the COVID-19 pandemic impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and its impact on the Company’s customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the impact of the COVID-19 pandemic and actions taken in response to the pandemic on global and regional economies, national and local economic activity, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. The Company cautions readers not 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:

John H. Watt, Jr., President and CEO

John V. Moran, 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)

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Profitability:

Diluted earnings per share

$

0.91

$

0.78

$

0.80

$

0.56

$

0.23

Weighted average diluted common shares outstanding

43,889,889

43,973,971

43,941,953

43,928,344

44,130,324

Return on average assets3

1.46

%

1.24

%

1.29

%

0.94

%

0.43

%

Return on average equity3

13.57

%

11.59

%

12.09

%

8.76

%

3.69

%

Return on average tangible common equity1 3

18.24

%

15.71

%

16.51

%

12.14

%

5.24

%

Net interest margin1 3

3.17

%

3.20

%

3.17

%

3.38

%

3.52

%

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Balance sheet data:

Securities available for sale

$

1,387,028

$

1,348,698

$

1,197,925

$

1,108,443

$

1,000,980

Securities held to maturity

592,999

616,560

663,088

599,164

621,359

Net loans

7,528,459

7,388,885

7,446,143

7,514,491

7,147,383

Total assets

11,537,253

10,932,906

10,850,212

10,847,184

9,953,543

Total deposits

9,815,930

9,081,692

8,958,183

8,815,891

7,864,638

Total borrowings

308,766

406,731

446,737

602,988

714,283

Total liabilities

10,346,272

9,745,288

9,684,101

9,704,532

8,841,364

Stockholders' equity

1,190,981

1,187,618

1,166,111

1,142,652

1,112,179

Capital:

Equity to assets

10.32

%

10.86

%

10.75

%

10.53

%

11.17

%

Tangible equity ratio1

8.00

%

8.41

%

8.27

%

8.04

%

8.55

%

Book value per share

$

27.43

$

27.22

$

26.74

$

26.20

$

25.52

Tangible book value per share2

$

20.71

$

20.52

$

20.02

$

19.46

$

18.96

Leverage ratio

9.60

%

9.56

%

9.48

%

9.44

%

10.02

%

Common equity tier 1 capital ratio

12.13

%

11.84

%

11.63

%

11.34

%

10.90

%

Tier 1 capital ratio

13.38

%

13.09

%

12.88

%

12.60

%

12.14

%

Total risk-based capital ratio

15.92

%

15.62

%

15.43

%

15.15

%

13.36

%

Common stock price (end of period)

$

39.90

$

32.10

$

26.82

$

30.06

$

32.39



NBT Bancorp Inc. and Subsidiaries

Selected Financial Data

(unaudited, dollars in thousands except per share data)

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Asset quality:

Nonaccrual loans

$

43,399

$

44,647

$

35,896

$

25,567

$

29,972

90 days past due and still accruing

2,155

3,149

2,579

2,057

2,280

Total nonperforming loans

45,554

47,796

38,475

27,624

32,252

Other real estate owned

1,318

1,458

1,605

1,783

2,384

Total nonperforming assets

46,872

49,254

40,080

29,407

34,636

Allowance for loan losses

105,000

110,000

114,500

113,500

100,000

Asset quality ratios (total):

Allowance for loan losses to total loans

1.38

%

1.47

%

1.51

%

1.49

%

1.38

%

Total nonperforming loans to total loans

0.60

%

0.64

%

0.51

%

0.36

%

0.45

%

Total nonperforming assets to total assets

0.41

%

0.45

%

0.37

%

0.27

%

0.35

%

Allowance for loan losses to total nonperforming loans

230.50

%

230.14

%

297.60

%

410.87

%

310.06

%

Past due loans to total loans

0.22

%

0.37

%

0.26

%

0.30

%

0.51

%

Net charge-offs to average loans3

0.12

%

0.21

%

0.12

%

0.28

%

0.32

%

Asset quality ratios (excluding paycheck protection program):

Allowance for loan losses to total loans

1.48

%

1.56

%

1.62

%

1.59

%

1.38

%

Total nonperforming loans to total loans

0.64

%

0.68

%

0.55

%

0.39

%

0.45

%

Total nonperforming assets to total assets

0.43

%

0.47

%

0.39

%

0.28

%

0.35

%

Allowance for loan losses to total nonperforming loans

230.44

%

230.10

%

297.53

%

410.78

%

310.06

%

Past due loans to total loans

0.23

%

0.39

%

0.28

%

0.32

%

0.51

%

Net charge-offs to average loans3

0.13

%

0.22

%

0.13

%

0.30

%

0.32

%



NBT Bancorp Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited, dollars in thousands)

March 31,

December 31,

Assets

2021

2020

Cash and due from banks

$

182,830

$

159,995

Short-term interest bearing accounts

972,195

512,686

Equity securities, at fair value

32,247

30,737

Securities available for sale, at fair value

1,387,028

1,348,698

Securities held to maturity (fair value $600,176 and $636,827, respectively)

592,999

616,560

Federal Reserve and Federal Home Loan Bank stock

25,127

27,353

Loans held for sale

1,295

1,119

Loans

7,633,459

7,498,885

Less allowance for loan losses

105,000

110,000

Net loans

$

7,528,459

$

7,388,885

Premises and equipment, net

72,705

74,206

Goodwill

280,541

280,541

Intangible assets, net

10,923

11,735

Bank owned life insurance

187,458

186,434

Other assets

263,446

293,957

Total assets

$

11,537,253

$

10,932,906

Liabilities and stockholders' equity

Demand (noninterest bearing)

$

3,495,622

$

3,241,123

Savings, NOW and money market

5,715,935

5,207,090

Time

604,373

633,479

Total deposits

$

9,815,930

$

9,081,692

Short-term borrowings

95,339

168,386

Long-term debt

14,069

39,097

Subordinated debt, net

98,162

98,052

Junior subordinated debt

101,196

101,196

Other liabilities

221,576

256,865

Total liabilities

$

10,346,272

$

9,745,288

Total stockholders' equity

$

1,190,981

$

1,187,618

Total liabilities and stockholders' equity

$

11,537,253

$

10,932,906



NBT Bancorp Inc. and Subsidiaries

Quarterly Consolidated Statements of Income

(unaudited, dollars in thousands except per share data)

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Interest, fee and dividend income

Interest and fees on loans

$

75,093

$

76,863

$

74,998

$

77,270

$

78,728

Securities available for sale

5,544

5,478

5,603

5,600

5,753

Securities held to maturity

3,382

3,532

3,734

3,926

4,091

Other

291

568

659

650

829

Total interest, fee and dividend income

$

84,310

$

86,441

$

84,994

$

87,446

$

89,401

Interest expense

Deposits

$

3,172

$

3,887

$

4,267

$

4,812

$

9,104

Short-term borrowings

70

193

446

972

1,797

Long-term debt

124

369

398

393

393

Subordinated debt

1,359

1,339

1,375

128

-

Junior subordinated debt

530

545

565

695

926

Total interest expense

$

5,255

$

6,333

$

7,051

$

7,000

$

12,220

Net interest income

$

79,055

$

80,108

$

77,943

$

80,446

$

77,181

Provision for loan losses

(2,796

)

(607

)

3,261

18,840

29,640

Net interest income after provision for loan losses

$

81,851

$

80,715

$

74,682

$

61,606

$

47,541

Noninterest income

Service charges on deposit accounts

$

3,027

$

3,588

$

3,087

$

2,529

$

3,997

ATM and debit card fees

6,862

6,776

7,194

6,136

5,854

Retirement plan administration fees

10,098

9,011

9,685

9,214

7,941

Wealth management

7,910

7,456

7,695

6,823

7,273

Insurance

3,461

3,454

3,742

3,292

4,269

Bank owned life insurance income

1,381

1,733

1,255

1,381

1,374

Net securities gains (losses)

467

160

84

180

(812

)

Other

3,832

5,937

4,985

5,456

5,527

Total noninterest income

$

37,038

$

38,115

$

37,727

$

35,011

$

35,423

Noninterest expense

Salaries and employee benefits

$

41,601

$

41,016

$

40,451

$

39,717

$

40,750

Occupancy

5,873

5,280

5,294

5,065

5,995

Data processing and communications

4,731

4,157

4,058

4,079

4,233

Professional fees and outside services

3,589

4,388

3,394

3,403

3,897

Equipment

5,177

5,395

5,073

4,779

4,642

Office supplies and postage

1,499

1,517

1,530

1,455

1,636

FDIC expense

808

739

645

993

311

Advertising

451

827

530

322

609

Amortization of intangible assets

812

822

856

883

834

Loan collection and other real estate owned, net

590

930

620

728

1,017

Other

2,757

10,133

3,857

3,916

6,957

Total noninterest expense

$

67,888

$

75,204

$

66,308

$

65,340

$

70,881

Income before income tax expense

$

51,001

$

43,626

$

46,101

$

31,277

$

12,083

Income tax expense

11,155

9,432

10,988

6,564

1,715

Net income

$

39,846

$

34,194

$

35,113

$

24,713

$

10,368

Earnings Per Share

Basic

$

0.91

$

0.78

$

0.80

$

0.57

$

0.24

Diluted

$

0.91

$

0.78

$

0.80

$

0.56

$

0.23



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

Q1 - 2021

Q4 - 2020

Q3 - 2020

Q2 - 2020

Q1 - 2020

Assets

Short-term interest bearing accounts

$

587,358

0.09

%

$

552,529

0.11

%

$

477,946

0.11

%

$

380,260

0.10

%

$

74,695

1.28

%

Securities available for sale1 4

1,346,380

1.67

%

1,230,411

1.77

%

1,137,604

1.96

%

985,561

2.29

%

962,527

2.40

%

Securities held to maturity1 4

607,407

2.43

%

640,422

2.36

%

621,812

2.56

%

613,899

2.75

%

622,398

2.81

%

Investment in FRB and FHLB Banks

25,606

2.45

%

28,275

5.94

%

29,720

7.08

%

36,604

6.09

%

39,784

5.97

%

Loans1 5

7,574,337

4.02

%

7,533,953

4.06

%

7,559,218

3.95

%

7,589,032

4.10

%

7,163,114

4.42

%

Total interest earning assets

$

10,141,088

3.38

%

$

9,985,590

3.46

%

$

9,826,300

3.45

%

$

9,605,356

3.68

%

$

8,862,518

4.07

%

Other assets

960,994

954,123

967,194

961,807

885,570

Total assets

$

11,102,082

$

10,939,713

$

10,793,494

$

10,567,163

$

9,748,088

Liabilities and stockholders' equity

Money market deposit accounts

$

2,484,120

0.23

%

$

2,455,510

0.27

%

$

2,364,606

0.28

%

$

2,360,407

0.29

%

$

2,101,306

1.00

%

NOW deposit accounts

1,358,955

0.05

%

1,315,370

0.05

%

1,207,064

0.05

%

1,167,486

0.04

%

1,086,205

0.10

%

Savings deposits

1,547,983

0.05

%

1,465,562

0.05

%

1,447,021

0.05

%

1,383,495

0.05

%

1,276,285

0.06

%

Time deposits

615,343

0.93

%

645,288

1.15

%

684,708

1.31

%

760,803

1.48

%

842,989

1.62

%

Total interest bearing deposits

$

6,006,401

0.21

%

$

5,881,730

0.26

%

$

5,703,399

0.30

%

$

5,672,191

0.34

%

$

5,306,785

0.69

%

Short-term borrowings

115,182

0.25

%

175,597

0.44

%

277,890

0.64

%

427,004

0.92

%

533,516

1.35

%

Long-term debt

19,913

2.53

%

59,488

2.47

%

64,137

2.47

%

64,165

2.46

%

64,194

2.46

%

Subordinated debt, net

98,095

5.62

%

97,984

5.44

%

97,934

5.59

%

8,633

5.96

%

-

-

Junior subordinated debt

101,196

2.12

%

101,196

2.14

%

101,196

2.22

%

101,196

2.76

%

101,196

3.68

%

Total interest bearing liabilities

$

6,340,787

0.34

%

$

6,315,995

0.40

%

$

6,244,556

0.45

%

$

6,273,189

0.45

%

$

6,005,691

0.82

%

Demand deposits

3,319,024

3,178,410

3,111,617

2,887,545

2,398,307

Other liabilities

250,991

271,206

282,265

271,635

214,495

Stockholders' equity

1,191,280

1,174,102

1,155,056

1,134,794

1,129,595

Total liabilities and stockholders' equity

$

11,102,082

$

10,939,713

$

10,793,494

$

10,567,163

$

9,748,088

Interest rate spread

3.04

%

3.06

%

3.00

%

3.23

%

3.25

%

Net interest margin (FTE)1

3.17

%

3.20

%

3.17

%

3.38

%

3.52

%



NBT Bancorp Inc. and Subsidiaries

Consolidated Loan Balances

(unaudited, dollars in thousands)

The following table presents loans by line of business, paycheck protection program loans includes $14.2 million, $6.9 million, $11.3 million and $14.6 million in unamortized fees as of March 31, 2021 December 31, 2020 September 30, 2020 and June 30, 2020, respectively.

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Commercial

$

1,271,319

$

1,267,679

$

1,297,408

$

1,318,806

$

1,338,609

Commercial real estate

2,437,811

2,380,358

2,281,843

2,256,580

2,242,139

Paycheck protection program

536,494

430,810

514,558

510,097

-

Residential real estate mortgages

1,478,216

1,466,662

1,448,530

1,460,058

1,446,676

Indirect auto

913,083

931,286

989,369

1,091,889

1,184,888

Specialty lending

577,509

579,644

566,973

515,618

539,378

Home equity

369,633

387,974

404,346

415,528

431,536

Other consumer

49,394

54,472

57,616

59,415

64,157

Total loans

$

7,633,459

$

7,498,885

$

7,560,643

$

7,627,991

$

7,247,383

The following table provide loans as a percentage of total loans in industries vulnerable to the COVID-19 pandemic as of March 31, 2021 excluding PPP loans:

Industry

% of Total Loans

Accommodations

2.4

%

Healthcare services and practices

2.2

%

Restaurants and entertainment

1.8

%

Retailers

1.7

%

Automotive

1.4

%

Total

9.5

%

Allowance for Loan Losses as a Percentage of Loans by Segment:

2020

2021

1st Q

2nd Q

3rd Q

4th Q

1st Q

Commercial & industrial

1.43

%

1.25

%

1.34

%

1.34

%

1.20

%

Commercial real estate

1.10

%

1.56

%

1.57

%

1.49

%

1.48

%

Paycheck protection program

0.00

%

0.01

%

0.01

%

0.01

%

0.01

%

Residential real estate

0.99

%

1.13

%

1.21

%

1.07

%

1.03

%

Auto

1.08

%

0.99

%

0.92

%

0.93

%

0.78

%

Other consumer

4.00

%

5.01

%

4.66

%

4.55

%

4.34

%

Total

1.38

%

1.49

%

1.51

%

1.47

%

1.38

%

Total excluding PPP loans

1.38

%

1.59

%

1.62

%

1.56

%

1.48

%



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)

Pre-provision net revenue ("PPNR")

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Income before income tax expense

$

51,001

$

43,626

$

46,101

$

31,277

$

12,083

FTE adjustment

302

318

325

329

329

Provision for loan losses

(2,796

)

(607

)

3,261

18,840

29,640

Net securities (gains) losses

(467

)

(160

)

(84

)

(180

)

812

Nonrecurring expense

-

4,100

-

650

-

Unfunded loan commitments reserve

(500

)

900

-

(200

)

2,000

PPNR

$

47,540

$

48,177

$

49,603

$

50,716

$

44,864

Average Assets

$

11,102,082

$

10,939,713

$

10,793,494

$

10,567,163

$

9,748,088

Return on Average Assets3

1.46

%

1.24

%

1.29

%

0.94

%

0.43

%

PPNR Return on Average Assets3

1.74

%

1.75

%

1.83

%

1.93

%

1.85

%

PPNR is a Non-GAAP financial measure that management believes is useful in evaluating the underlying operating results of the Company excluding the volatility in loan loss provision due to CECL adoption and the impact of the COVID-19 pandemic, net securities gains (losses) and non-recurring income and/or expense.

FTE Adjustment

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Net interest income

$

79,055

$

80,108

$

77,943

$

80,446

$

77,181

Add: FTE adjustment

302

318

325

329

329

Net interest income (FTE)

$

79,357

$

80,426

$

78,268

$

80,775

$

77,510

Average earning assets

$

10,141,088

$

9,985,590

$

9,826,300

$

9,605,356

$

8,862,518

Net interest margin (FTE)3

3.17

%

3.20

%

3.17

%

3.38

%

3.52

%

Interest income for tax-exempt securities and loans have been adjusted to a 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

(unaudited, dollars in thousands)

Tangible equity to tangible assets

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Total equity

$

1,190,981

$

1,187,618

$

1,166,111

$

1,142,652

$

1,112,179

Intangible assets

291,464

292,276

293,098

293,954

285,955

Total assets

$

11,537,253

$

10,932,906

$

10,850,212

$

10,847,184

$

9,953,543

Tangible equity to tangible assets

8.00

%

8.41

%

8.27

%

8.04

%

8.55

%

Return on average tangible common equity

2021

2020

1st Q

4th Q

3rd Q

2nd Q

1st Q

Net income

$

39,846

$

34,194

$

35,113

$

24,713

$

10,368

Amortization of intangible assets (net of tax)

609

617

642

662

626

Net income, excluding intangibles amortization

$

40,455

$

34,811

$

35,755

$

25,375

$

10,994

Average stockholders' equity

$

1,191,280

$

1,174,102

$

1,155,056

$

1,134,794

$

1,129,595

Less: average goodwill and other intangibles

291,921

292,725

293,572

294,423

286,400

Average tangible common equity

$

899,359

$

881,377

$

861,484

$

840,371

$

843,195

Return on average tangible common equity3

18.24

%

15.71

%

16.51

%

12.14

%

5.24

%

2

Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.

3

Annualized.

4

Securities are shown at average amortized cost.

5

For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.