EX-99.1 2 ef20019435_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS


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

NBT BANCORP INC. ANNOUNCES FULL YEAR NET INCOME AND DECLARES DIVIDEND

NORWICH, NY (January 23, 2024) – 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.”


2
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.


3
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.


4
 
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.


5
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.
 

6
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.


7
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.


8
NBT Bancorp Inc. and Subsidiaries
                             
Selected Financial Data
                             
(unaudited, dollars in thousands except per share data)
                             
                               
 
2023
 
2022
 
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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 Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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 Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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
 


9
NBT Bancorp Inc. and Subsidiaries
                             
Asset Quality and Consolidated Loan Balances
                             
(unaudited, dollars in thousands)
                             
                               
 
2023
 
2022
 
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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 Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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 Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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 Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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
 


10
NBT Bancorp Inc. and Subsidiaries
           
Consolidated Balance Sheets
           
(unaudited, dollars in thousands)
           
             
 
December 31,
December 31,
 
   
2023
   
2022
 
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
 


11
NBT Bancorp Inc. and Subsidiaries
                       
Consolidated Statements of Income
                       
(unaudited, dollars in thousands except per share data)
                       
                         
   
Three Months Ended
   
Twelve Months Ended
 
 
December 31,
December 31,
   
2023
   
2022
   
2023
   
2022
 
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
 


12
NBT Bancorp Inc. and Subsidiaries
                             
Quarterly Consolidated Statements of Income
                             
(unaudited, dollars in thousands except per share data)
                             
                               
 
2023
 
2022
 
   
4th Q
   
3rd Q
   
2nd Q
   
1st Q
   
4th 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
 


13
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 - 2023
Q3 - 2023
Q2 - 2023
Q1 - 2023
Q4 - 2022
Assets
                                                                     
Short-term interest-bearing accounts
 
$
319,907
     
5.59
%
 
$
121,384
     
4.26
%
 
$
28,473
     
3.62
%
 
$
34,215
     
2.26
%
 
$
39,573
     
3.31
%
Securities taxable1
   
2,310,409
     
1.88
%
   
2,364,809
     
1.90
%
   
2,394,027
     
1.90
%
   
2,442,732
     
1.92
%
   
2,480,959
     
1.88
%
Securities tax-exempt 1 5
   
232,575
     
3.51
%
   
219,427
     
3.34
%
   
201,499
     
2.83
%
   
202,321
     
2.81
%
   
208,238
     
2.68
%
FRB and FHLB stock
   
47,994
     
8.98
%
   
53,841
     
6.76
%
   
51,454
     
7.12
%
   
41,144
     
4.45
%
   
32,903
     
4.11
%
Loans1 6
   
9,653,191
     
5.47
%
   
9,043,582
     
5.36
%
   
8,307,894
     
5.17
%
   
8,189,520
     
5.00
%
   
8,039,442
     
4.72
%
Total interest-earning assets
 
$
12,564,076
     
4.79
%
 
$
11,803,043
     
4.63
%
 
$
10,983,347
     
4.42
%
 
$
10,909,932
     
4.26