• NBT Bancorp Inc. Announces First Quarter Net Income of $33.7 Million ($0.78 Per Diluted Common Share)

    المصدر: Nasdaq GlobeNewswire / 24 أبريل 2023 16:15:01   America/New_York

    NORWICH, N.Y., April 24, 2023 (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, 2023.

    Net income for the three months ended March 31, 2023 was $33.7 million, or $0.78 per diluted common share, compared to $39.1 million, or $0.90 per diluted share, for the three months ended March 31, 2022, and $36.1 million, or $0.84 per diluted share, in the fourth quarter of 2022.

    • Excluding the impact of securities losses and acquisition expenses, the Company generated $0.88 per diluted share of earnings in the first quarter of 2023, compared to $0.86 per share in the fourth quarter of 2022 and $0.91 per share in the first quarter of 2022.
    • Net interest income in the first quarter of 2023 increased 18% in comparison to the first quarter of 2022, primarily due to higher yields on earning assets due to increases in the Federal Reserve’s targeted Federal Funds rate as well as the new loan volume pricing, which was partially offset by the higher cost of interest-bearing liabilities. The first quarter of 2022 also included $2.0 million ($0.04 per diluted share) of income from the Paycheck Protection Program (“PPP”).
    • The Company recorded a provision for loan losses of $3.9 million ($0.07 per diluted share) in the first quarter of 2023, compared to $0.6 million ($0.01 per diluted share) in the first quarter of 2022.
    • First quarter card services income was approximately $4.0 million ($0.07 per diluted share) lower than last year’s first quarter driven by the impact of the statutory price cap provisions of the Durbin Amendment to the Dodd-Frank Act (“Durbin Amendment”) beginning in the third quarter of 2022.
    • In the first quarter of 2023, the Company incurred a $5.0 million ($0.09 per diluted share) securities loss on the write-off of a subordinated debt security of a failed bank.
    • The Company incurred acquisition expenses of $0.6 million ($0.01 per diluted share) and $1.0 million ($0.02 per diluted share) related to the pending merger with Salisbury Bancorp, Inc. (“Salisbury”) in the first quarter of 2023 and the fourth quarter of 2022, respectively.

    CEO Comments

    “NBT’s first quarter results reflect the strength of our balance sheet and our consistent and traditional banking franchise,” said NBT President and CEO John H. Watt, Jr. “During a quarter characterized by heightened market volatility, we grew loans and deposits, maintained strong asset quality, increased our capital position and continued to deliver high-quality and timely customer service,” added Watt. “We were also pleased to announce that the shareholders of Salisbury voted overwhelmingly to approve our proposed merger. The merger is expected to close late in the second quarter, subject to customary closing conditions, including receipt of required regulatory approvals,” said Watt.

    First Quarter Financial Highlights

    Net Income
    • Net income of $33.7 million
    • Diluted earnings per share of $0.78
    • Excluding acquisition expenses and securities losses, diluted earnings per share of $0.88
    Net Interest Income / NIM
    • Net interest income on a fully taxable equivalent (“FTE”) basis was $95.5 million1
    • Net interest margin (“NIM”) on an FTE basis was 3.55%1, down 13 basis points (“bps”) from the prior quarter
    • Earning asset yields of 4.26%, up 24 bps from the prior quarter
    • Total cost of funds of 0.75%, up 38 bps from the prior quarter
    Noninterest Income
    • Noninterest income was $36.4 million, excluding securities losses and was 27.7% of total revenue
    Loans and Credit Quality
    • Period end total loans of $8.26 billion at March 31, 2023, up $114.4 million, or 1.4%, from December 31, 2022
    • Net charge-offs to average loans was 0.19%, annualized
    • Nonperforming loans to total loans was 0.23%, down from 0.26% in the prior quarter and 0.36% in the first quarter of 2022
    • Allowance for loan losses to total loans of 1.21%
    Deposits
    • Deposits were $9.68 billion as of March 31, 2023, up 2% from December 31, 2022
    • Total cost of deposits was 0.47% for the first quarter of 2023, up 30 bps from the prior quarter
    • Deposit composition is diverse and granular with over 521,000 accounts with an average per account balance of $18,554
    Capital
    • Stockholders’ equity was $1.21 billion as of March 31, 2023
    • Tangible book value per share2 was $21.52 at March 31, 2023, 4.2% higher than fourth quarter of 2022 and 1.3% higher than the first quarter of 2022
    • Tangible equity to assets of 7.99%1
    • CET1 ratio of 12.28%; Leverage ratio of 10.43%

    Loans

    • Period end total loans were $8.26 billion at March 31, 2023 and $8.15 billion at December 31, 2022.
    • Period end loans increased $114.4 million from December 31, 2022. Commercial and industrial loans increased $12.3 million to $1.28 billion; commercial real estate loans increased $37.7 million to $2.85 billion; and total consumer loans increased $64.5 million to $4.14 billion.
    • Commercial line of credit utilization rate was 22% at March 31, 2023, compared to 21% at December 31, 2022 and 23% at March 31, 2022.

    Deposits

    • Total deposits at March 31, 2023 were $9.68 billion, compared to $9.50 billion at December 31, 2022. The increase in deposits was concentrated in time and money market accounts with seasonal municipal deposit inflows during the quarter.
    • Loan to deposit ratio was 85.4% at March 31, 2023, compared to 85.8% at December 31, 2022.

    Net Interest Income and Net Interest Margin

    • Net interest income for the first quarter of 2023 was $95.1 million, which was down $4.7 million, or 4.7%, from the fourth quarter of 2022 and up $14.7 million, or 18.3%, from the first quarter of 2022, and included two less days in the quarter compared to the fourth quarter.
    • The NIM on an FTE basis for the first quarter of 2023 was 3.55%, down 13 bps from the fourth quarter of 2022 driven by the increase in yields on interest-bearing deposits, as well as higher balances in short-term borrowings and the rates paid on those borrowings. The NIM on an FTE basis was up 60 bps from the first quarter of 2022 due to higher earning asset yields partially offset by higher cost of interest-bearing liabilities.
    • Earning asset yields for the three months ended March 31, 2023 were up 24 bps from the prior quarter and up 117 bps from the same quarter in the prior year. Earning assets grew $108.8 million, or 1.0%, from the fourth quarter of 2022, or 4.1% annualized. The following are highlights comparing the first quarter of 2023 to the prior quarter:
      • Loan yields increased 28 bps to 5.00%.
      • Average short-term borrowings increased $162.4 million, quarter over quarter.
    • Total cost of deposits, including noninterest bearing deposits, was 0.47% for the first quarter of 2023, up 30 bps from the prior quarter and up 40 bps from the same period in the prior year.
    • Total cost of funds for the three months ended March 31, 2023 was 0.75%, up 38 bps from the prior quarter and up 60 bps from the first quarter of 2022.

    Asset Quality and Allowance for Loan Losses

    • Net charge-offs to total average loans was 19 bps compared to 18 bps in the prior quarter and 14 bps in the first quarter of 2022. The increase in net charge-offs from the first quarter of 2022 was from higher charge-offs in the Company’s other consumer portfolio, which is in a run-off status.
    • Nonperforming assets to total assets were 0.16% at March 31, 2023, compared to 0.18% at December 31, 2022 and 0.23% at March 31, 2022.
    • Provision expense for the three months ended March 31, 2023 was $3.9 million with net charge-offs of $3.8 million. Provision expense was $3.8 million lower than the fourth quarter of 2022 and $3.3 million higher than the first quarter of 2022. The decrease in provision expense from the fourth quarter of 2022 was due to a lower level of loan growth in the first quarter, generally stable economic forecasts and portfolio mix composition and quality.
    • The allowance for loan losses was $100.3 million, or 1.21% of total loans, at March 31, 2023, compared to 1.24% of total loans at December 31, 2022 and 1.18% of total loans at March 31, 2022. The adoption of the accounting changes for troubled debt restructurings on January 1, 2023 reduced the allowance for loan losses by $0.6 million to $100.2 million, or 1.22% of total loans. The reserve for unfunded loan commitments decreased to $4.5 million at March 31, 2023 compared to the prior quarter-end at $5.1 million and to $4.8 million at March 31, 2022.

    Noninterest Income

    • Total noninterest income, excluding securities losses, was $36.4 million for the three months ended March 31, 2023, up $2.1 million from the fourth quarter and down $6.4 million from the prior year’s first quarter.
    • Card services income was comparable to the prior quarter and approximately $4 million lower than the first quarter of 2022 driven by the impact on debit interchange revenues from the statutory price cap provisions of the Durbin Amendment.
    • Retirement plan administration fees were seasonally higher than the fourth quarter of 2022 and were lower than the first quarter of 2022 driven by market performance and a decrease in activity-based fees which were primarily statutory plan document restatement requirements.
    • Wealth management fees were comparable to the prior quarter, but lower than the first quarter of 2022 driven primarily by a decline in market performance.
    • In the first quarter of 2023, the Company recorded a $5.0 million ($0.09 per diluted share) securities loss related to the write-off of a subordinated debt security of a failed bank.

    Noninterest Expense

    • Total noninterest expense, excluding $0.6 million of acquisition expenses in the first quarter of 2023 and $1.0 million in the fourth quarter of 2022, was comparable to the previous quarter and up 9.1% from the first quarter of 2022.
    • Salaries and benefits increased 1.9% from the prior quarter driven by seasonally higher payroll taxes, seasonally higher stock-based compensation expenses and merit pay increases. The increase from the first quarter of 2022 was driven by increased salaries and wages, including merit pay increases and higher benefit plan expenses and staff additions.
    • Technology and data services expenses were comparable with the prior quarter and increased from the first quarter of 2022 due to continued investment in digital platform solutions.
    • Occupancy costs increased from the prior quarter and the first quarter of 2022 driven by seasonal costs including utility expenses.
    • Professional fees and outside services expenses were lower than the prior quarter due to seasonal expenses and timing of external services for several tactical and strategic initiatives incurred in the prior quarter and were comparable to the first quarter of 2022.
    • FDIC assessment expense increased $0.6 million ($0.01 per diluted share) from the prior quarter and the first quarter of 2022 driven by the statutory increase in the FDIC assessment rate.
    • Loan collection and other real estate owned were comparable to the prior quarter and higher than the first quarter of 2022 due to an offsetting gain on the sale of a property in the first quarter of 2022.
    • Other expenses declined from the seasonally higher linked fourth quarter of 2022. The first quarter of 2023 was $2.0 million higher than the prior year first quarter due to the increase in actuarially determined amortization expense related to the Company’s retirement plans and higher travel and training expenses due to increased activity compared to the pandemic-impacted first quarter of 2022.

    Income Taxes

    • The effective tax rate was 22.2% for the first quarter of 2023, compared to 22.6% for the fourth quarter of 2022 and 22.2% for the first quarter of 2022.

    Capital

    • Capital ratios remain strong with tangible common equity to tangible assets1 at 7.99%. Tangible book value per share2 was $21.52 at March 31, 2023, $20.65 at December 30, 2022 and $21.25 at March 31, 2022.
    • Stockholders’ equity increased $38.1 million from December 31, 2022 driven by net income generation of $33.7 million and a $16.1 million increase in accumulated other comprehensive income due primarily to the change in the market value of securities available for sale, partly offset by dividends declared of $12.9 million.
    • March 31, 2023, CET1 capital ratio of 12.28%, leverage ratio of 10.43% and total risk-based capital ratio of 15.53%.

    Conference Call and Webcast

    The Company will host a conference call at 8:30 a.m. (Eastern) Tuesday, April 25, 2023, to review first quarter 2023 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at https://www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

    Corporate Overview

    NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $11.84 billion at March 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 140 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 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 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 COVID-19 global pandemic; and (21) the Company’s success at managing the risks involved in the foregoing items.

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

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

    Non-GAAP Measures

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


    NBT Bancorp Inc. and Subsidiaries      
    Selected Financial Data      
    (unaudited, dollars in thousands except per share data)     
           
     20232022 
     1st Q4th Q3rd Q2nd Q1st Q 
    Profitability:      
    Diluted earnings per share$ 0.78 $0.84 $0.90 $0.88 $0.90  
    Weighted average diluted common shares outstanding 43,125,986  43,144,666  43,110,932  43,092,851  43,385,451  
    Return on average assets3 1.16%  1.23%  1.33%  1.28%  1.32%  
    Return on average equity3 11.47%  12.30%  12.87%  12.73%  12.78%  
    Return on average tangible common equity1 3 15.31%  16.54%  17.12%  17.00%  16.87%  
    Net interest margin1 3 3.55%  3.68%  3.51%  3.21%  2.95%  
           
     20232022 
     1st Q4th Q3rd Q2nd Q1st Q 
    Balance sheet data:      
    Short-term interest-bearing accounts$ 68,045 $30,862 $97,303 $328,593 $913,315  
    Securities available for sale 1,512,008  1,527,225  1,556,501  1,619,356  1,662,697  
    Securities held to maturity 906,824  919,517  929,541  936,512  895,005  
    Net loans 8,164,328  8,049,347  7,807,984  7,684,081  7,559,826  
    Total assets 11,839,730  11,739,296  11,640,742  11,720,459  12,147,833  
    Total deposits 9,681,205  9,495,933  9,918,751  10,028,708  10,461,623  
    Total borrowings 703,248  787,950  277,889  265,796  278,788  
    Total liabilities 10,628,071  10,565,742  10,484,196  10,531,903  10,945,583  
    Stockholders' equity 1,211,659  1,173,554  1,156,546  1,188,556  1,202,250  
           
    Capital:      
    Equity to assets 10.23%  10.00%  9.94%  10.14%  9.90%  
    Tangible equity ratio1 7.99%  7.73%  7.64%  7.87%  7.70%  
    Book value per share$ 28.24 $27.38 $27.00 $27.75 $27.96  
    Tangible book value per share2$ 21.52 $20.65 $20.25 $20.99 $21.25  
    Leverage ratio 10.43%  10.32%  10.21%  9.77%  9.52%  
    Common equity tier 1 capital ratio 12.28%  12.12%  12.17%  12.14%  12.23%  
    Tier 1 capital ratio 13.34%  13.19%  13.27%  13.27%  13.39%  
    Total risk-based capital ratio 15.53%  15.38%  15.50%  15.50%  15.64%  
    Common stock price (end of period)$ 33.71 $43.42 $37.95 $37.59 $36.13  
           


    NBT Bancorp Inc. and Subsidiaries      
    Asset Quality and Consolidated Loan Balances      
    (unaudited, dollars in thousands)      
           
     20232022 
     1st Q4th Q3rd Q2nd Q1st Q 
    Asset quality:      
    Nonaccrual loans$ 16,284 $17,233 $19,098 $23,673 $25,812  
    90 days past due and still accruing 2,328  3,823  2,732  2,096  1,944  
    Total nonperforming loans 18,612  21,056  21,830  25,769  27,756  
    Other real estate owned 105  105  -  -  -  
    Total nonperforming assets 18,717  21,161  21,830  25,769  27,756  
    Allowance for loan losses 100,250  100,800  96,800  93,600  90,000  
           
    Asset quality ratios:      
    Allowance for loan losses to total loans 1.21%  1.24%  1.22%  1.20%  1.18%  
    Total nonperforming loans to total loans 0.23%  0.26%  0.28%  0.33%  0.36%  
    Total nonperforming assets to total assets 0.16%  0.18%  0.19%  0.22%  0.23%  
    Allowance for loan losses to total nonperforming loans 538.63%  478.72%  443.43%  363.23%  324.25%  
    Past due loans to total loans4 0.30%  0.33%  0.30%  0.40%  0.24%  
    Net charge-offs to average loans3 0.19%  0.18%  0.07%  0.04%  0.14%  
           
     20232022 
    Loan net charge-offs by line of business: 1st Q4th Q3rd Q2nd Q1st Q 
    Commercial & industrial$ (294)$(45)$(1,045)$(298)$139  
    Commercial real estate 42  8  324  (246) 346  
    Residential real estate and home equity 80  (79) (56) (210) 163  
    Indirect auto 423  445  222  163  135  
    Residential solar 656  596  43  153  132  
    Other consumer 2,904  2,752  1,796  1,228  1,681  
    Total loan net charge-offs$ 3,811 $3,677 $1,284 $790 $2,596  
           
     20232022 
     1st Q4th Q3rd Q2nd Q1st Q 
    Allowance for loan losses as a percentage of loans by segment:     
    Commercial & industrial 0.85%  0.82%  0.80%  0.74%  0.64%  
    Commercial real estate 0.93%  0.91%  0.88%  0.89%  0.79%  
    Residential real estate 0.73%  0.72%  0.74%  0.79%  0.88%  
    Auto 0.77%  0.81%  0.78%  0.79%  0.76%  
    Residential solar 3.04%  3.21%  3.08%  3.00%  2.97%  
    Other consumer 6.19%  6.27%  6.67%  6.19%  6.24%  
    Total 1.21%  1.24%  1.22%  1.20%  1.18%  
           
     20232022 
    Loans by line of business: 1st Q4th Q3rd Q2nd Q1st Q 
    Commercial & industrial$ 1,277,446 $1,265,082 $1,258,871 $1,298,072 $1,214,834  
    Commercial real estate 2,845,631  2,807,941  2,724,728  2,670,633  2,709,611  
    Paycheck protection program 845  949  3,328  17,286  50,977  
    Residential real estate 1,651,918  1,649,870  1,626,528  1,606,188  1,584,551  
    Indirect auto 1,031,315  989,587  952,757  936,516  890,643  
    Residential solar 920,084  856,798  728,898  599,565  514,526  
    Home equity 308,219  314,124  313,557  313,395  319,180  
    Other consumer 229,120  265,796  296,117  336,026  365,504  
    Total loans$ 8,264,578 $8,150,147 $7,904,784 $7,777,681 $7,649,826  
           
    PPP income recognized$ 9 $71 $320 $1,301 $1,976  
    PPP unamortized fees$ 38 $45 $108 $414 $1,629  
           


    NBT Bancorp Inc. and Subsidiaries  
    Consolidated Balance Sheets 
    (unaudited, dollars in thousands) 
        
     March 31,December 31, 
    Assets20232022 
    Cash and due from banks$ 161,750$166,488 
    Short-term interest-bearing accounts 68,045 30,862 
    Equity securities, at fair value 32,807 30,784 
    Securities available for sale, at fair value 1,512,008 1,527,225 
    Securities held to maturity (fair value $812,664 and $812,647, respectively) 906,824 919,517 
    Federal Reserve and Federal Home Loan Bank stock 45,342 44,713 
    Loans held for sale 425 562 
    Loans 8,264,578 8,150,147 
    Less allowance for loan losses 100,250 100,800 
    Net loans$ 8,164,328$8,049,347 
    Premises and equipment, net 67,868 69,047 
    Goodwill 281,204 281,204 
    Intangible assets, net 6,955 7,341 
    Bank owned life insurance 232,514 232,409 
    Other assets 359,660 379,797 
    Total assets$ 11,839,730$11,739,296 
        
    Liabilities and stockholders' equity   
    Demand (noninterest bearing)$ 3,429,188$3,617,324 
    Savings, NOW and money market 5,467,550 5,444,837 
    Time 784,467 433,772 
    Total deposits$ 9,681,205$9,495,933 
    Short-term borrowings 475,226 585,012 
    Long-term debt 29,790 4,815 
    Subordinated debt, net 97,036 96,927 
    Junior subordinated debt 101,196 101,196 
    Other liabilities 243,618 281,859 
    Total liabilities$ 10,628,071$10,565,742 
        
    Total stockholders' equity$ 1,211,659$1,173,554 
        
    Total liabilities and stockholders' equity$ 11,839,730$11,739,296 
        


    NBT Bancorp Inc. and Subsidiaries      
    Quarterly Consolidated Statements of Income     
    (unaudited, dollars in thousands except per share data)     
           
     20232022 
     1st Q4th Q3rd Q2nd Q1st Q 
    Interest, fee and dividend income      
    Interest and fees on loans$ 100,899 $95,620 $85,266 $78,539 $73,343  
    Securities available for sale 7,616  7,831  7,665  7,317  6,840  
    Securities held to maturity 5,035  5,050  4,854  4,185  3,493  
    Other 642  671  1,429  1,442  525  
    Total interest, fee and dividend income$ 114,192 $109,172 $99,214 $91,483 $84,201  
    Interest expense      
    Deposits$ 11,144 $4,092 $2,233 $1,756 $1,842  
    Short-term borrowings 4,919  2,510  84  13  16  
    Long-term debt 47  21  20  33  87  
    Subordinated debt 1,334  1,346  1,360  1,359  1,359  
    Junior subordinated debt 1,682  1,424  1,039  737  549  
    Total interest expense$ 19,126 $9,393 $4,736 $3,898 $3,853  
    Net interest income$ 95,066 $99,779 $94,478 $87,585 $80,348  
    Provision for loan losses 3,909  7,677  4,484  4,390  596  
    Net interest income after provision for loan losses$ 91,157 $92,102 $89,994 $83,195 $79,752  
    Noninterest income      
    Service charges on deposit accounts$ 3,548 $3,598 $3,581 $3,763 $3,688  
    Card services income 4,845  4,958  5,654  9,751  8,695  
    Retirement plan administration fees 11,462  10,661  11,496  12,676  13,279  
    Wealth management 8,087  8,017  8,402  8,252  8,640  
    Insurance services 3,931  3,438  3,892  3,578  3,788  
    Bank owned life insurance income 1,878  1,419  1,560  1,411  1,654  
    Net securities (losses) (4,998) (217) (148) (587) (179) 
    Other 2,656  2,217  2,735  2,812  3,094  
    Total noninterest income$ 31,409 $34,091 $37,172 $41,656 $42,659  
    Noninterest expense      
    Salaries and employee benefits$ 48,155 $47,235 $48,371 $46,716 $45,508  
    Technology and data services 9,007  9,124  9,096  8,945  8,547  
    Occupancy 7,220  6,521  6,481  6,487  6,793  
    Professional fees and outside services 4,178  4,811  3,817  3,906  4,276  
    Office supplies and postage 1,628  1,699  1,469  1,548  1,424  
    FDIC assessment 1,396  798  787  810  802  
    Advertising 649  879  559  730  654  
    Amortization of intangible assets 536  538  544  545  636  
    Loan collection and other real estate owned, net 855  957  549  757  384  
    Acquisition expenses 618  967  -  -  -  
    Other 5,080  5,980  5,021  5,675  3,119  
    Total noninterest expense$ 79,322 $79,509 $76,694 $76,119 $72,143  
    Income before income tax expense$ 43,244 $46,684 $50,472 $48,732 $50,268  
    Income tax expense 9,586  10,563  11,499  10,957  11,142  
    Net income$ 33,658 $36,121 $38,973 $37,775 $39,126  
    Earnings Per Share      
    Basic$ 0.78 $0.84 $0.91 $0.88 $0.91  
    Diluted$ 0.78 $0.84 $0.90 $0.88 $0.90  
           


    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 - 2023Q4 - 2022Q3 - 2022Q2 - 2022Q1 - 2022 
    Assets            
    Short-term interest-bearing accounts $ 34,2152.26% $39,5733.31% $191,4632.51% $553,5480.82% $990,3190.17%  
    Securities taxable1  2,442,7321.92%  2,480,9591.88%  2,491,3151.83%  2,439,9601.74%  2,284,5781.67%  
    Securities tax-exempt 1 5  202,3212.81%  208,2382.68%  211,3062.47%  256,7991.83%  258,5131.84%  
    FRB and FHLB stock  41,1444.45%  32,9034.11%  25,1823.47%  24,9835.03%  25,0261.98%  
    Loans1 6  8,189,5205.00%  8,039,4424.72%  7,808,0254.34%  7,707,7304.09%  7,530,6743.95%  
    Total interest-earning assets $ 10,909,9324.26% $10,801,1154.02% $10,727,2913.68% $10,983,0203.35% $11,089,1103.09%  
    Other assets  836,879  855,410  887,378  883,498  947,578  
    Total assets $ 11,746,811 $11,656,525 $11,614,669 $11,866,518 $12,036,688  
    Liabilities and stockholders' equity            
    Money market deposit accounts $ 2,081,2101.22% $2,169,1920.39% $2,332,3410.15% $2,577,3670.14% $2,720,3380.15%  
    NOW deposit accounts  1,598,8340.36%  1,604,0960.33%  1,548,1150.21%  1,580,1320.07%  1,583,0910.05%  
    Savings deposits  1,781,4650.03%  1,823,0560.03%  1,854,1220.03%  1,845,1280.03%  1,794,5490.03%  
    Time deposits  639,6452.10%  432,1100.41%  455,1680.35%  478,5310.37%  494,6320.40%  
    Total interest-bearing deposits $ 6,101,1540.74% $6,028,4540.27% $6,189,7460.14% $6,481,1580.11% $6,592,6100.11%  
    Federal funds purchased  44,3344.92%  56,5764.03%  1,5223.39%  --  --  
    Repurchase agreements  71,3400.08%  76,3340.11%  69,0480.10%  60,0610.09%  72,7680.09%  
    Short-term borrowings  357,2004.96%  177,5334.28%  6,4403.33%  --  --  
    Long-term debt  7,2992.61%  3,8172.18%  3,3312.38%  5,3362.48%  13,9792.52%  
    Subordinated debt, net  96,9665.58%  97,8395.46%  98,7485.46%  98,6425.53%  98,5315.59%  
    Junior subordinated debt  101,1966.74%  101,1965.58%  101,1964.07%  101,1962.92%  101,1962.20%  
    Total interest-bearing liabilities $ 6,779,4891.14% $6,541,7490.57% $6,470,0310.29% $6,746,3930.23% $6,879,0840.23%  
    Demand deposits  3,502,489  3,658,965  3,708,131  3,711,049  3,710,124  
    Other liabilities  274,517  290,895  234,851  218,491  206,292  
    Stockholders' equity  1,190,316  1,164,916  1,201,656  1,190,585  1,241,188  
    Total liabilities and stockholders' equity $ 11,746,811 $11,656,525 $11,614,669 $11,866,518 $12,036,688  
    Interest rate spread  3.12%  3.45%  3.39%  3.12%  2.86%  
    Net interest margin (FTE)1  3.55%  3.68%  3.51%  3.21%  2.95%  
                 


           
    1The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
           
     Non-GAAP measures     
     (unaudited, dollars in thousands)     
           
     FTE adjustment20232022
      1st Q4th Q3rd Q2nd Q1st Q
     Net interest income$ 95,066 $99,779 $94,478 $87,585 $80,348 
     Add: FTE adjustment 395  392  337  290  285 
     Net interest income (FTE)$ 95,461 $100,171 $94,815 $87,875 $80,633 
     Average earning assets$ 10,909,932 $10,801,115 $10,727,291 $10,983,020 $11,089,110 
     Net interest margin (FTE)3 3.55%  3.68%  3.51%  3.21%  2.95% 
           
     Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.
           
     Tangible equity to tangible assets20232022
      1st Q4th Q3rd Q2nd Q1st Q
     Total equity$ 1,211,659 $1,173,554 $1,156,546 $1,188,556 $1,202,250 
     Intangible assets 288,159  288,545  289,083  289,259  288,832 
     Total assets$ 11,839,730 $11,739,296 $11,640,742 $11,720,459 $12,147,833 
     Tangible equity to tangible assets 7.99%  7.73%  7.64%  7.87%  7.70% 
           
     Return on average tangible common equity20232022
      1st Q4th Q3rd Q2nd Q1st Q
     Net income$ 33,658 $36,121 $38,973 $37,775 $39,126 
     Amortization of intangible assets (net of tax) 402  404  408  409  477 
     Net income, excluding intangibles amortization$ 34,060 $36,525 $39,381 $38,184 $39,603 
           
     Average stockholders' equity$ 1,190,316 $1,164,916 $1,201,656 $1,190,585 $1,241,188 
     Less: average goodwill and other intangibles 288,354  288,856  289,296  289,584  289,218 
     Average tangible common equity$ 901,962 $876,060 $912,360 $901,001 $951,970 
     Return on average tangible common equity3 15.31%  16.54%  17.12%  17.00%  16.87% 
           
    2Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
    3Annualized.     
    4Total past due loans, defined as loans 30 days or more past due and in an accrual status.  
    5Securities are shown at average amortized cost.    
    6For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
           

    Contact:

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


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