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NBT Bancorp Inc. Announces Net Income of $19.3 Million for the Second Quarter of 2015, Second Highest in the Company’s History; Declares Cash Dividend

20:00 EDT 26 Jul 2015 | Globe Newswire

NORWICH, N.Y., July 27, 2015 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) announced reported net income for the three months ended June 30, 2015 was $19.3 million, up from $18.2 million for the first quarter of 2015, and down from $27.6 million for the second quarter of 2014.  Reported net income for the second quarter of 2014 included an $11.2 million net gain (after taxes and related incentive compensation) on the sale of our ownership interest in Springstone LLC (“Springstone”), partially offset by $2.9 million in prepayment penalties, net of tax, related to our long-term debt restructuring strategy.  Reported diluted earnings per share for the three months ended June 30, 2015 was $0.43, as compared with $0.41 for the prior quarter, and $0.62 per share for the second quarter of 2014. 

Core net income for the three months ended June 30, 2015 was $19.6 million, up from $18.2 million in the previous quarter, and up from $19.1 million from the same period last year.  Core earnings per diluted share for the three months ended June 30, 2015 was $0.44, up from $0.41 for the first quarter of 2015, and up from $0.43 for the second quarter of 2014.

Reported net income for the six months ended June 30, 2015 was $37.4 million, down from $45.6 million for the same period last year.  Reported net income for the six months ended June 30, 2014 included the aforementioned gain on the sale of our ownership interest in Springstone, partially offset by the aforementioned prepayment penalties related to our long-term debt restructuring strategy.  Reported diluted earnings per share for the six months ended June 30, 2015 was $0.84, as compared with $1.03 for the same period in 2014.

Core net income for the six months ended June 30, 2015 was $37.7 million, up from $37.5 million for the same period last year.  Core earnings per diluted share for the six months ended June 30, 2015 was $0.85, equivalent to the same period last year.    

The second quarter and year to date reported results for 2015 and 2014 contained items which the Company considers non-core, such as the gain on the sale of an equity investment and long-term debt restructuring prepayment penalties in 2014, and other items not considered core to our operations in both years.

Second Quarter 2015 Highlights:

  • Core net income for the second quarter of 2015 was second highest in the Company’s history
     
  • Strong second quarter organic loan growth (annualized) of 10.5% driven by:
    • Commercial – 13.1%
    • Residential mortgage – 10.2%
    • Consumer – 11.9%
       
  • Continued positive trends in asset quality indicators:
    • Nonperforming loans to total loans improved to 0.77% at June 30, 2015 from 0.85% at March 31, 2015 and 0.96% at June 30, 2014
    • Annualized net charge-offs to average loans improved to 0.30% for the second quarter of 2015, down from 0.34% for the first quarter of 2015 and 0.41% for the 2014 full year

“For the second quarter of 2015, we’re pleased to report strong earnings with both our reported and core net income at the second highest level in NBT’s history,” said NBT President and CEO Martin Dietrich. “Our bankers are contributing to these results with robust organic loan growth for the second quarter of 10.5% annualized. All sectors are performing well, particularly the commercial portfolio where growth in our established markets is being augmented by lending in our new markets in New England.”

Net interest income was $62.7 million for the second quarter of 2015, up $0.5 million from the previous quarter, and up $0.1 million from the second quarter of 2014.  FTE net interest margin was 3.51% for the three months ended June 30, 2015, down from 3.60% for the previous quarter and the second quarter of 2014.  Average interest earning assets were up $149.3 million, or 2.1%, for the second quarter of 2015 as compared to the prior quarter, and up $188.6 million, or 2.7%, from the same period in 2014.  The increase from the first quarter of 2015 was driven primarily by organic loan production.  Annualized organic loan growth of 10.5% during the second quarter of 2015 was driven by growth in most portfolios.  Yields on earning assets decreased by 10 basis points (“bps”) from 3.89% during the first quarter of 2015 to 3.79% for the second quarter of 2015, which was more than offset by the growth in earning assets during the second quarter of 2015, and resulted in modest growth in net interest income.  The yield compression was driven by a 9 bp decrease in loan yields from the first quarter of 2015 to the second quarter of 2015.  Average interest bearing liabilities increased $88.5 million, or 1.7%, from the first quarter of 2015 to the second quarter of 2015, which was driven by a 1.1% increase in interest bearing deposits for the second quarter of 2015.  We continued to experience migration of time deposits to lower cost transaction accounts and the rate paid on money market deposit accounts decreased slightly during the second quarter of 2015, which contributed to a 1 bp decrease in the rate paid on interest bearing liabilities for the three months ended June 30, 2015 as compared to the prior period.  The decrease on the rate paid on interest bearing liabilities partially offset the aforementioned rate compression on earning assets.     

Net interest income was $124.9 million for the six months ended June 30, 2015, up $0.8 million from the same period in 2014.  FTE net interest margin was 3.55% for the six months ended June 30, 2015, down from 3.62% for the six months ended June 30, 2014.  Average interest earning assets were up $159.6 million, or 2.3%, for the six months ended June 30, 2015 as compared to the same period in 2014.  This increase from last year was driven primarily by 6.3% annualized organic loan growth during the first six months of 2015.  Yields on earning assets decreased from 3.98% during the first six months of 2014 to 3.84% for the first six months of 2015, and offset the growth in earning assets resulting in a 1.2% decrease in interest income for the six months ended June 30, 2015 as compared to the same period in 2014.  The yield compression was driven by an 18 bp decrease in loan yields from the first six months of 2014 to the first six months of 2015.  Average interest bearing liabilities decreased $57.4 million, or 1.1%, from the six months ended June 30, 2014 to the six months ended June 30, 2015, which was driven by a $168.9 million decrease in average long-term borrowings due to the debt restructuring strategy completed during the third quarter of 2014.  In addition, average short-term borrowings decreased $107.0 million for the six months ended June 30, 2015 as compared to the same period last year.  These decreases were partially offset by a $218.5 million, or 5.0%, increase in interest bearing deposits for the first six months of 2015 as compared to the same period in 2014.  This deposit growth was driven by increases in money market deposit accounts as well as savings deposits in the first six months of 2015.  The rates paid on interest bearing liabilities decreased by 9 bps for the six months ended June 30, 2015 as compared to the same period in 2014.  This decrease resulted primarily from the aforementioned debt restructuring and partially offset the rate compression on earning assets.     

Noninterest income for the three months ended June 30, 2015 was $28.2 million, up $1.7 million, or 6.3% from the prior quarter, and up $1.6 million, or 6.0%, from the second quarter of 2014 when adjusted for the sale of Springstone.  The increase from the prior quarter was driven primarily by increases in trust income, ATM and debit card fees, retirement plan administration fees, and other noninterest income.  Trust revenue was up $0.7 million, or 16.8%, for the second quarter of 2015 as compared with the first quarter of 2015 due primarily to seasonality of trust revenue.  ATM and debit card fees were up $0.4 million, or 10.1%, for the second quarter of 2015 as compared to the first quarter of 2015 due primarily to increases in debit card transactions and number of accounts.  Retirement plan administration fees were up $0.4 million, or 11.6%, for the second quarter of 2015 as compared to the first quarter of 2015 due primarily to new business generation.  Other noninterest income was up $1.1 million, or 41.1%, for the second quarter of 2015 as compared to the first quarter of 2015 due primarily to an acquired loan charge-off recovery during the second quarter.  These increases were partially offset by a $0.6 million, or 40.5%, decrease in bank owned life insurance due to benefit payments received during the first quarter of 2015.  In addition, insurance and other financial services revenue decreased $0.5 million, or 8.4%, in the second quarter of 2015 as compared with the first quarter of 2015 due primarily to seasonality of insurance revenue.  

Noninterest income for the six months ended June 30, 2015 was $54.7 million, up $1.8 million, or 3.5% from the same period last year when adjusted for the sale of Springstone.  The increase from the prior year was driven primarily by increases in retirement plan administration fees, ATM and debit card fees, and other noninterest income.  Retirement plan administration fees were up $0.9 million, or 14.7%, for the first half of 2015 as compared to the same period in 2014 due primarily to new business generation.  ATM and debit card fees were up $0.5 million, or 5.9%, for the first half of 2015 as compared to the same period last year due primarily to an increase in debit card activity.    Other noninterest income was up $0.6 million, or 10.8%, for the first half of 2015 as compared to the first half of 2014. 

Noninterest expense for the three months ended June 30, 2015 was $58.0 million, up $0.3 million or 0.5% from the prior quarter and down $0.2 million from the second quarter of 2014, after adjusting for the $4.6 million in prepayment penalties incurred as a result of the debt restructuring in 2014.  The increase from the prior quarter was due primarily to a $1.0 million or 19.5%, increase in other operating expenses driven by branch reorganization expenses incurred in the second quarter of 2015.  In addition, salaries and employee benefits increased $0.6 million, or 2.2%, from the first quarter of 2015 to the second quarter of 2015.  These increases were partially offset by a decrease in occupancy expenses for the second quarter of 2015 from the first quarter of 2015 due to seasonal expenses.  Loan collection and other real estate owned expenses decreased $0.9 million from the first quarter of 2015 to the second quarter of 2015 due to gains on sales of other real estate owned recorded in the second quarter of 2015 which offset expenses during the period.  Income tax expense for the three month period ended June 30, 2015 was $9.8 million, up $0.6 million from the prior quarter, and down $4.3 million from the second quarter of 2014, which included the impact of the aforementioned non-core items.  The increase from the prior period was due primarily to a higher level of taxable income for the second quarter of 2015.  The effective tax rate was 33.6% for the first and second quarters of 2015, and 33.7% for the second quarter of 2014.

Noninterest expense for the six months ended June 30, 2015 was $115.7 million, down $4.6 million or 3.8% from the same period in 2014, due primarily to the $4.6 million in prepayment penalties incurred in the second quarter of 2014.  Excluding this non-core prepayment penalty, noninterest expense was flat for the first six months of 2015 as compared to the same period last year.  Loan collection and other real estate owned expenses decreased $0.9 million in the first six months of 2015 as compared to the same period in 2014 due to gains on sales of real estate recorded in the second quarter of 2015, which offset expenses during the period.  This decrease was offset by a $0.7 million increase in other operating expenses for the first six months of 2015 as compared to the same period in 2014, driven by the aforementioned branch reorganization expenses incurred in the second quarter of 2015.  Income tax expense for the six month period ended June 30, 2015 was $18.9 million, down $3.8 million from the six month period ended June 30, 2014.  The decrease from 2014 was due to a lower level of taxable income in 2015 primarily due to the non-core items recorded in 2014.  The effective tax rate was 33.6% for the first six months of 2015 as compared to 33.2% for the first six months of 2014.

Asset Quality

Net charge-offs were $4.3 million for the three months ended June 30, 2015, down from $4.6 million for the prior quarter, and up slightly from $4.1 million for the second quarter of 2014.  Provision expense was $3.9 million for the three months ended June 30, 2015, as compared with $3.6 million for the prior quarter, and $4.2 million for the second quarter of 2014.  Provision expense for the second quarter of 2015 was less than charge-offs due to the continued improvement in asset quality metrics.  Annualized net charge-offs to average loans for the second quarter of 2015 was 0.30%, compared with 0.34% for the first quarter of 2015 and 0.30% for the second quarter of 2014.

Nonperforming loans to total loans was 0.77% at June 30, 2015, down 8 bps from the prior quarter, and down 19 bps from June 30, 2014.  Past due loans as a percentage of total loans were 0.61% at June 30, 2015 as compared to 0.69% at December 31, 2014.   

The allowance for loan losses totaled $65.0 million at June 30, 2015, compared to $65.4 million at March 31, 2015, and $69.5 million at June 30, 2014.  The allowance for loan losses as a percentage of loans was 1.13% (1.24% excluding acquired loans with no related allowance recorded) at June 30, 2015, compared to 1.16% (1.29% excluding acquired loans with no related allowance recorded) at March 31, 2015 and 1.25% (1.44% excluding acquired loans with no related allowance recorded) at June 30, 2014.  The decrease in the allowance for loan losses as a percentage of loans from prior periods was due primarily to continued positive trends in asset quality metrics of the originated loan portfolio.

Balance Sheet

Total assets were $8.1 billion at June 30, 2015, up $274.6 million, or 3.5% from December 31, 2014.  Loans were $5.8 billion at June 30, 2015, up $175.6 million, or 3.1%, from December 31, 2014.  Total deposits were $6.4 billion at June 30, 2015, up $71.9 million, or 1.1%, from December 31, 2014.  Stockholders’ equity was $876.0 million, representing a total equity-to-total assets ratio of 10.85% at June 30, 2015, compared with $864.2 million or a total equity-to-total assets ratio of 11.08% at December 31, 2014.

Stock Repurchase Program

The Company purchased 433,351 shares of its common stock during the six months ended June 30, 2015 at an average price of $24.63 per share under a previously announced plan.  As of June 30, 2015, there were 566,649 shares available for repurchase under this plan, which expires on December 31, 2016.  On July 27, 2015, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares of its outstanding common stock.  This plan expires on December 31, 2016.

Dividend

The NBT Board of Directors approved a 2015 third-quarter cash dividend of $0.22 per share at a meeting held today.  The dividend will be paid on September 15, 2015 to shareholders of record as of September 1, 2015.
  
Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.1 billion at June 30, 2015.  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 over 155 banking locations with offices in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. NBT-Mang Insurance Agency, based in Norwich, N.Y., is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.epic1st.com and www.nbtmang.com.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, that could cause actual conditions, events or results to differ significantly from those described in 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) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation.  Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not update forward-looking statements to reflect subsequent circumstances or events.

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).  These measures adjust GAAP measures to exclude the effects of sales of securities and certain non-recurring and merger-related expenses.  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 provided useful information that is important to an understanding of the operating results of NBT’s core business (due to the non-recurring nature of the excluded items).  Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider NBT’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of NBT.

NBT Bancorp Inc. and Subsidiaries      
SELECTED FINANCIAL DATA      
(unaudited, dollars in thousands except per share data)      
       
  2015  2014  
 2nd Q1st Q4th Q3rd Q2nd Q 
Reconciliation of Non-GAAP Financial Measures:      
Reported net income (GAAP)$19,281 $18,166 $18,513 $10,912 $27,640  
Adj: (Gain) / Loss on sale of securities, net (net of tax)   (17)   (9)   (22)   (25)   (9) 
Adj: Other adjustments (net of tax) (1)    324    -     11    83    (315) 
Adj: Gain on sale of Springstone (net of tax and related incentive compensation)   -     -     -     -     (11,168) 
Adj: Prepayment penalties related to debt restructuring (net of tax)   -     -     -     8,833    2,925  
Total Adjustments   307    (9)   (11)   8,891    (8,567) 
Core net income$19,588 $18,157 $18,502 $19,803 $19,073  
       
Profitability:      
Core Diluted Earnings Per Share$0.44 $0.41 $0.42 $0.45 $0.43  
Diluted Earnings Per Share$0.43 $0.41 $0.42 $0.25 $0.62  
Weighted Average Diluted       
  Common Shares Outstanding 44,530,123  44,641,913  44,535,274  44,405,357  44,363,787  
Core Return on Average Assets (2) 0.99% 0.94% 0.94% 1.01% 0.99% 
Return on Average Assets (2) 0.97% 0.94% 0.94% 0.55% 1.43% 
Core Return on Average Equity (2) 8.95% 8.45% 8.45% 9.19% 9.06% 
Return on Average Equity (2) 8.81% 8.46% 8.46% 5.06% 13.12% 
Core Return on Average Tangible Common Equity (2)(4) 13.67% 13.07% 13.08% 14.35% 14.27% 
Return on Average Tangible Common Equity (2)(4) 13.47% 13.08% 13.09% 8.15% 20.43% 
Net Interest Margin (2)(3) 3.51% 3.60% 3.61% 3.61% 3.60% 
       
Six Months Ended June 30,      
      
Reconciliation of Non-GAAP Financial Measures: 2015  2014  
Reported net income (GAAP)$37,447 $45,649  
Adj: Gain on sale of securities, net (net of tax)   (26)   (14) 
Adj: Other adjustments (net of tax) (6)    324    115  
Adj: Gain on sale of Springstone (net of tax and related incentive compensation)   -     (11,168)    
Adj: Prepayment penalties related to debt restructuring (net of tax)   -     2,925     
Total Adjustments   298    (8,142) 
Core net income$37,745 $37,507  
    
Profitability:   
Core Diluted Earnings Per Share$0.85 $0.85  
Diluted Earnings Per Share$0.84 $1.03  
Weighted Average Diluted       
  Common Shares Outstanding 44,589,358  44,328,854  
Core Return on Average Assets (2) 0.97% 0.98% 
Return on Average Assets (2) 0.96% 1.20% 
Core Return on Average Equity (2) 8.70% 9.04% 
Return on Average Equity (2) 8.63% 11.00% 
Core Return on Average Tangible Common Equity (2)(5) 13.38% 14.38% 
Return on Average Tangible Common Equity (2)(5) 13.28% 17.37% 
Net Interest Margin (2)(3) 3.55% 3.62% 
       
(1) Primarily net gain on settlement of litigation and reorganization expenses for 2014 and reorganization expenses in 2015.    
(2)  Annualized      
(3)  Calculated on a Fully Tax Equivalent (“FTE”) basis      
(4)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:  
       
       
  2015  2014  
 2nd Q1st Q4th Q3rd Q2nd Q 
Average stockholders' equity$  878,164 $  871,074 $  868,634 $  855,164 $  844,707  
Less: average goodwill and other intangibles   282,272    283,508    284,743    285,993    287,366  
Average tangible common equity$  595,892 $  587,566 $  583,891 $  569,171 $  557,341  
       
(5)  Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:  
       
 6 Months ended June 30,    
  2015  2014     
Average stockholders' equity$  874,639 $  836,692     
Less: average goodwill and other intangibles   282,887    288,685     
Average tangible common equity$  591,752 $  548,007    
       
(6)  Primarily net gain on settlement of litigation and reorganization expenses for 2014 and reorganization expenses for 2015.   
       
Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.    

 

NBT Bancorp Inc. and Subsidiaries      
SELECTED FINANCIAL DATA      
(unaudited, dollars in thousands except per share data)      
       
       
  2015  2014  
 2nd Q1st Q4th Q3rd Q2nd Q 
Balance Sheet Data:      
Securities Available for Sale$1,129,249 $1,071,654 $1,013,171 $1,044,502 $1,378,799  
Securities Held to Maturity   454,312    456,773    454,361    459,620    125,965  
Net Loans   5,705,929    5,557,664    5,528,912    5,517,757    5,504,954  
Total Assets   8,072,485    7,863,861    7,797,926    7,867,031    7,869,512  
Total Deposits   6,371,479    6,479,437    6,299,605    6,314,939    6,042,588  
Total Borrowings   743,893    425,143    548,943    607,889    886,799  
Total Liabilities   7,196,514    6,986,367    6,933,745    7,009,591    7,012,371  
Stockholders' Equity   875,971    877,494    864,181    857,440    857,141  
       
Asset Quality:      
Nonaccrual Loans$42,286 $45,053 $41,074 $50,531 $51,234  
90 Days Past Due and Still Accruing   1,994    2,601    4,941    4,022    2,186  
Total Nonperforming Loans   44,280    47,654    46,015    54,553    53,420  
Other Real Estate Owned   4,649    4,387    3,964    1,497    1,953  
Total Nonperforming Assets   48,929    52,041    49,979    56,050    55,373  
Allowance for Loan Losses   64,959    65,359    66,359    69,334    69,534  
       
Asset Quality Ratios (Total):      
Allowance for Loan Losses to Total Loans 1.13% 1.16% 1.19% 1.24% 1.25% 
Total Nonperforming Loans to Total Loans 0.77% 0.85% 0.82% 0.98% 0.96% 
Total Nonperforming Assets to Total Assets 0.61% 0.66% 0.64% 0.71% 0.70% 
Allowance for Loan Losses to Total Nonperforming Loans 146.70% 137.15% 144.21% 127.09% 130.16% 
Past Due Loans to Total Loans 0.61% 0.54% 0.69% 0.65% 0.57% 
Net Charge-Offs to Average Loans (3) 0.30% 0.34% 0.70% 0.36% 0.30% 
       
Asset Quality Ratios (Originated) (1):      
Allowance for Loan Losses to Loans 1.24% 1.29% 1.36% 1.38% 1.44% 
Nonperforming Loans to Loans 0.59% 0.69% 0.72% 0.83% 0.81% 
Allowance for Loan Losses to Nonperforming Loans 208.99% 188.68% 187.88% 166.69% 177.01% 
Past Due Loans to Loans 0.64% 0.56% 0.73% 0.70% 0.59% 
       
Capital:      
Equity to Assets 10.85% 11.16% 11.08% 10.90% 10.89% 
Book Value Per Share$20.05 $19.95 $19.69 $19.62 $19.61  
Tangible Book Value Per Share (2)$13.61 $13.52 $13.22 $13.09 $13.06  
Tier 1 Leverage Ratio 9.57% 9.72% 9.39% 9.20% 9.23% 
Common Equity Tier 1 Capital Ratio 10.22% 10.46%N/AN/AN/A 
Tier 1 Capital Ratio 11.78% 12.05% 12.32% 11.94% 11.87% 
Total Risk-Based Capital Ratio 12.84% 13.15% 13.50% 13.16% 13.09% 
Common Stock Price (End of Period)$26.17 $25.06 $26.27 $22.52 $24.02  
       
(1)  Excludes acquired loans      
(2)  Stockholders' equity less goodwill and intangible assets divided by common shares outstanding   
(3)  Annualized      
       

 

NBT Bancorp Inc. and Subsidiaries    
CONSOLIDATED BALANCE SHEETS   
(unaudited, dollars in thousands)   
    
 June 30,December 31, 
ASSETS 2015  2014  
Cash and due from banks$   127,676  $  139,635  
Short term interest bearing accounts   6,535     7,001  
Securities available for sale, at fair value    1,129,249     1,013,171  
Securities held to maturity (fair value of $454,255 and $454,994 at   454,312     454,361  
  June 30, 2015 and December 31, 2014, respectively)   
Trading securities   8,468     7,793  
Federal Reserve and Federal Home Loan Bank stock   38,659     32,626  
Loans   5,770,888     5,595,271  
Less allowance for loan losses   64,959     66,359  
  Net loans  5,705,929   5,528,912   
Premises and equipment, net   87,652     89,258  
Goodwill   263,634     263,634  
Intangible assets, net   17,897     20,317  
Bank owned life insurance   115,241     114,251  
Other assets   117,233     126,967  
TOTAL ASSETS$   8,072,485  $   7,797,926   
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Deposits:   
 Demand (noninterest bearing)$   1,840,012  $  1,838,622  
 Savings, NOW, and money market   3,583,313     3,417,160  
 Time   948,154     1,043,823  
  Total deposits 6,371,479   6,299,605   
Short-term borrowings   511,992     316,802  
Long-term debt   130,705     130,945  
Junior subordinated debt   101,196     101,196  
Other liabilities   81,142     85,197  
  Total liabilities 7,196,514   6,933,745   
    
Total stockholders' equity   875,971     864,181  
    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$   8,072,485  $   7,797,926   
    

 

NBT Bancorp Inc. and Subsidiaries       
CONSOLIDATED STATEMENTS OF INCOME      
(unaudited, dollars in thousands except per share data)     
       
 Three Months Ended Six Months Ended 
 June 30, June 30, 
  2015  2014   2015  2014  
Interest, fee and dividend income:      
Loans$   59,873  $  60,559  $   119,391  $  120,574  
Securities available for sale 5,144     6,612     10,089     13,369  
Securities held to maturity 2,315     783     4,598     1,551  
Other 395     502     875     1,039  
  Total interest, fee and dividend income   67,727     68,456     134,953     136,533  
Interest expense:      
Deposits 3,517     3,000     7,090     6,284  
Short-term borrowings 144     209     265     440  
Long-term debt 836     2,135     1,662     4,642  
Junior subordinated debt 545     538     1,085     1,076  
  Total interest expense   5,042     5,882     10,102     12,442  
Net interest income   62,685     62,574     124,851     124,091  
Provision for loan losses 3,898     4,166     7,540     7,762  
  Net interest income after provision for loan losses   58,787     58,408     117,311     116,329  
Noninterest income:      
Insurance and other financial services revenue 5,836     5,594     12,210     12,331  
Service charges on deposit accounts 4,285     4,397     8,357     8,766  
ATM and debit card fees 4,679     4,357     8,927     8,429  
Retirement plan administration fees 3,566     2,977     6,762     5,895  
Trust 5,196     4,953     9,646     9,399  
Bank owned life insurance income 928     978     2,487     2,360  
Net securities gains 26     14     40     21  
Gain on the sale of Springstone investment   -      19,401     -      19,401  
Other 3,699     3,356     6,320     5,702  
  Total noninterest income   28,215     46,027     54,749     72,304  
Noninterest expense:      
Salaries and employee benefits 30,831     31,142     61,013     60,676  
Occupancy 5,412     5,435     11,478     11,661  
Data processing and communications 4,288     4,015     8,391     8,016  
Professional fees and outside services 3,395     3,752     6,892     7,167  
Equipment 3,316     3,132     6,565     6,248  
Office supplies and postage 1,627     1,803     3,246     3,488  
FDIC expenses   1,280     1,229     2,478     2,507  
Advertising  734     726     1,453     1,465  
Amortization of intangible assets 1,187     1,236     2,471     2,546  
Loan collection and other real estate owned 22     801     894     1,841  
Prepayment penalties on long-term debt   -      4,554     -      4,554  
Other operating 5,872     4,911     10,785     10,084  
  Total noninterest expense 57,964   62,736   115,666   120,253  
Income before income taxes 29,038   41,699   56,394   68,380  
Income taxes 9,757     14,059     18,947     22,731  
  Net income$   19,281  $  27,640  $   37,447  $  45,649  
Earnings Per Share:      
  Basic$   0.44  $  0.63  $   0.85  $  1.04  
  Diluted$   0.43  $  0.62  $   0.84  $  1.03  
       

 

NBT Bancorp Inc. and Subsidiaries      
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME      
(unaudited, dollars in thousands except per share data)      
       
  2015  2014  
 2nd Q1st Q4th Q3rd Q2nd Q 
Interest, fee and dividend income:      
Loans$  59,873 $  59,518 $  61,577 $  61,173 $  60,559  
Securities available for sale 5,144  4,945  5,000  6,095  6,612  
Securities held to maturity 2,315  2,283  2,357  1,353  783  
Other 395  480  480  513  502  
  Total interest, fee and dividend income 67,727  67,226  69,414  69,134  68,456  
Interest expense:      
Deposits 3,517  3,573  3,856  3,498  3,000  
Short-term borrowings 144  121  143  262  209  
Long-term debt 836  826  846  1,067  2,135  
Junior subordinated debt 545  540  545  544  538  
  Total interest expense 5,042  5,060  5,390  5,371  5,882  
Net interest income 62,685  62,166  64,024  63,763  62,574  
Provision for loan losses 3,898  3,642  6,892  4,885  4,166  
  Net interest income after provision for loan losses 58,787  58,524  57,132  58,878  58,408  
Noninterest income:      
Insurance and other financial services revenue 5,836  6,374  6,007  6,179  5,594  
Service charges on deposit accounts 4,285  4,072  4,656  4,519  4,397  
ATM and debit card fees 4,679  4,248  4,266  4,440  4,357  
Retirement plan administration fees 3,566  3,196  2,962  3,272  2,977  
Trust  5,196  4,450  4,793  4,758  4,953  
Bank owned life insurance income 928  1,559  1,894  1,095  978  
Net securities gains 26  14  33  38  14  
Gain on the sale of Springstone investment   -     -     -     -   19,401  
Other 3,699  2,621  2,435  2,376  3,356  
  Total noninterest income 28,215  26,534  27,046  26,677  46,027  
Noninterest expense:      
Salaries and employee benefits 30,831  30,182  30,058  28,933  31,142  
Occupancy 5,412  6,066  5,256  5,211  5,435  
Data processing and communications 4,288  4,103  4,092  4,029  4,015  
Professional fees and outside services 3,395  3,497  3,564  3,695  3,752  
Equipment 3,316  3,249  3,211  3,199  3,132  
Office supplies and postage 1,627  1,619  1,762  1,733  1,803  
FDIC expenses 1,280  1,198  1,302  1,135  1,229  
Advertising 734  719  963  403  726  
Amortization of intangible assets 1,187  1,284  1,226  1,275  1,236  
Loan collection and other real estate owned 22  872  702  705  801  
Prepayment penalties on long-term debt   -     -     -     13,348    4,554  
Other operating 5,872  4,913  4,607  5,401  4,911  
  Total noninterest expense 57,964  57,702  56,743  69,067  62,736  
Income before income taxes 29,038  27,356  27,435  16,488  41,699  
Income taxes 9,757  9,190  8,922  5,576  14,059  
  Net income $  19,281 $  18,166 $  18,513 $  10,912 $  27,640  
Earnings per share:      
  Basic$  0.44 $  0.41 $  0.42 $  0.25 $  0.63  
  Diluted$  0.43 $  0.41 $  0.42 $  0.25 $  0.62  
       
Note:  Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.   

 

NBT Bancorp Inc. and Subsidiaries          
AVERAGE QUARTERLY BALANCE SHEETS         
(unaudited, dollars in thousands)          
 Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
Average
Balance
Yield /
Rates
 Q2 - 2015Q1 - 2015Q4 - 2014Q3 - 2014Q2 - 2014
ASSETS:          
Short-term interest bearing accounts$   9,854   0.36%$  9,156  0.30%$  5,895  0.51%$  4,791  0.54%$  3,915  0.76%
Securities available for sale (1)(2)   1,067,619   1.98%   1,018,880  2.02%   1,018,505  2.00%   1,263,375  2.01%   1,376,314  2.05%
Securities held to maturity (1)    452,948   2.49%   454,957  2.47%   458,038  2.45%   234,403  2.84%   121,042  3.43%
Investment in FRB and FHLB Banks   31,564   4.90%   30,931  6.20%   31,274  6.01%   39,459  5.06%   42,965  4.63%
Loans (3)   5,688,159   4.24%   5,586,942  4.33%   5,603,268  4.37%   5,563,206  4.38%   5,517,315  4.42%
 Total interest earning assets$  7,250,144   3.79%$  7,100,866  3.89%$  7,116,980  3.92%$  7,105,234  3.91%$  7,061,551  3.94%
Other assets   685,523      696,091     709,955     697,814     680,059  
Total assets$  7,935,667   $  7,796,957  $  7,826,935  $  7,803,048  $  7,741,610  
           
LIABILITIES AND STOCKHOLDERS' EQUITY:          
Money market deposit accounts$1,598,898   0.20%$1,544,488  0.21%$1,524,881  0.20%$1,452,287  0.19%$1,441,284  0.15%
NOW deposit accounts   974,504   0.05%   972,263  0.05%   978,527  0.05%   927,026  0.05%   960,698  0.06%
Savings deposits   1,080,954   0.06%   1,040,031  0.06%   1,017,300  0.08%   1,025,795  0.07%   1,040,528  0.07%
Time deposits   968,714   1.00%   1,014,904  1.00%   1,058,615  1.03%   1,032,370  0.96%   971,595  0.88%
  Total interest bearing deposits$  4,623,070   0.31%$  4,571,686  0.32%$  4,579,323  0.33%$  4,437,478  0.31%$  4,414,105  0.27%
Short-term borrowings   302,693   0.19%   265,420  0.19%   299,981  0.19%   447,761  0.23%   383,480  0.22%
Junior subordinated debentures   101,196   2.16%   101,196  2.16%   101,196  2.13%   101,196  2.13%   101,196  2.13%
Long-term debt   130,743   2.56%   130,879  2.56%   131,000  2.56%   170,223  2.49%   290,791  2.95%
  Total interest bearing liabilities$  5,157,702   0.39%$  5,069,181  0.40%$  5,111,500  0.42%$  5,156,658  0.41%$  5,189,572  0.45%
Demand deposits   1,815,705      1,770,703     1,759,482     1,708,632     1,620,488  
Other liabilities   84,096      85,999     87,319     82,594     86,843  
Stockholders' equity   878,164      871,074     868,634     855,164     844,707  
Total liabilities and stockholders' equity$  7,935,667   $  7,796,957  $  7,826,935  $  7,803,048  $  7,741,610  
           
Interest rate spread  3.40%  3.49%  3.50%  3.50%  3.49%
Net interest margin  3.51%  3.60%  3.61%  3.61%  3.60%
           
(1) Securities are shown at average amortized cost          
(2) Excluding unrealized gains or losses          
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding     
           

 

NBT Bancorp Inc. and Subsidiaries      
AVERAGE YEAR-TO-DATE BALANCE SHEETS     
(unaudited, dollars in thousands)      
 Average Yield/Average Yield/
 BalanceInterestRates BalanceInterestRates 
  Six Months ended June 30,  2015  2014 
ASSETS:      
Short-term interest bearing accounts$9,507  $16   0.33%$3,328 $14  0.87%
Securities available for sale (1)(2)   1,043,385     10,349   2.00%   1,379,014    14,212  2.08%
Securities held to maturity (1)    453,947     5,580   2.48%   118,840    2,048  3.48%
Investment in FRB and FHLB Banks   31,250     859   5.54%   43,279    1,028  4.79%
Loans (3)   5,637,829     119,770   4.28%   5,471,879    121,002  4.46%
 Total interest earning assets$   7,175,918  $   136,574   3.84%$  7,016,340 $  138,304  3.98%
Other assets   690,777       679,654   
Total assets$   7,866,695    $  7,695,994   
       
LIABILITIES AND STOCKHOLDERS' EQUITY:      
Money market deposit accounts$1,571,843     1,603   0.21%$1,426,446    1,066  0.15%
NOW deposit accounts   973,390     249   0.05%   946,691    256  0.05%
Savings deposits   1,060,606     324   0.06%   1,020,391    369  0.07%
Time deposits   991,681     4,914   1.00%   985,510    4,593  0.94%
  Total interest bearing deposits$   4,597,520  $   7,090   0.31%$  4,379,038 $  6,284  0.29%
Short-term borrowings   284,160     265   0.19%   391,173    440  0.23%
Trust preferred debentures   101,196     1,085   2.16%   101,196    1,076  2.14%
Long-term debt   130,811     1,662   2.56%   299,726    4,642  3.12%
  Total interest bearing liabilities$   5,113,687  $   10,102   0.40%$  5,171,133 $  12,442  0.49%
Demand deposits   1,793,328       1,605,261   
Other liabilities   85,041       82,908   
Stockholders' equity   874,639       836,692   
Total liabilities and stockholders' equity$   7,866,695    $  7,695,994   
  Net interest income (FTE)    126,472       125,862  
Interest rate spread   3.44%   3.49%
Net interest margin   3.55%   3.62%
Taxable equivalent adjustment     1,621       1,771  
Net interest income $   124,851    $  124,091  
       
(1) Securities are shown at average amortized cost      
(2) Excluding unrealized gains or losses      
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding  

 

NBT Bancorp Inc. and Subsidiaries     
CONSOLIDATED LOAN BALANCES     
(unaudited, dollars in thousands)     
      
      
  2015  2014 
 2nd Q1st Q4th Q3rd Q2nd Q
Residential real estate mortgages$  1,154,416 $  1,125,886 $  1,115,715 $  1,099,912 $  1,073,100 
Commercial   1,147,586    1,140,114    1,144,761    1,179,616    1,203,882 
Commercial real estate   1,423,489    1,349,940    1,334,984    1,284,775    1,279,070 
Consumer   1,495,160    1,452,070    1,430,216    1,441,629    1,429,022 
Home equity   550,237    555,013    569,595    581,159    589,414 
 Total loans$  5,770,888 $  5,623,023 $  5,595,271 $  5,587,091 $  5,574,488 
     

 


 

Contact:
Martin A. Dietrich, CEO
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
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