NBT Bancorp Inc. Announces Record Net Income of $76.4 Million; Declares Cash Dividend

NORWICH, N.Y., Jan. 25, 2016 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the year ended December 31, 2015 of $76.4 million, up from $75.1 million from the prior year. Earnings per diluted share for the year ended December 31, 2015 was $1.72, up from $1.69 for the prior year.

Net income for the three months ended December 31, 2015 was $19.1 million, up from $18.5 million for the same period last year. Diluted earnings per share for the three months ended December 31, 2015 was $0.43, up from $0.42 for the same period last year.

2015 Highlights:

  • 2015 organic loan growth of 5.1%
  • Average demand deposits for 2015 up 11.2% from 2014
  • Improvement in asset quality indicators:
    • Nonperforming loans to total loans improved to 0.64% at December 31, 2015 from 0.82% at December 31, 2014
    • Past due loans to total loans improved to 0.62% at December 31, 2015 from 0.69% at December 31, 2014
    • Net charge-offs to average loans improved to 0.38% for 2015 from 0.41% in 2014

“We are pleased to report strong financial performance in 2015, including record net income of $76.4 million, in a very challenging environment,” said NBT President and CEO Martin Dietrich. “Our organic deposit and loan growth and improvement in our asset quality indicators demonstrate the ongoing efforts of our employees to deliver quality financial solutions and build lasting relationships while constantly striving to enhance the experience we deliver to our customers. We remain confident that NBT is well positioned for future success and will continue investing in our company to create long-term value for our shareholders.”

Net interest income was $252.6 million for the year ended December 31, 2015, up $0.7 million from 2014. Fully taxable equivalent (“FTE”) net interest margin was 3.50% for the year ended December 31, 2015, down from 3.61% for the year ended December 31, 2014. Average interest earning assets were up $241.8 million, or 3.4%, for the year ended December 31, 2015 as compared to 2014. This increase from last year was driven primarily by organic loan growth in both years. Yields on earning assets decreased from 3.94% during 2014 to 3.78% for 2015, more than offsetting the growth in earning assets, resulting in a 0.7% decrease in interest income for the year ended December 31, 2015 as compared to the year ended December 31, 2014. The yield compression was driven by a 20 basis-point decrease in loan yields from 2014 to 2015. Average interest bearing liabilities increased $21.0 million, or 0.4%, from the year ended December 31, 2014 to the year ended December 31, 2015. Total average deposits increased $344.2 million, or 5.6%, for the year ended December 31, 2015 as compared to last year driven primarily by an 11.2% increase in non-interest bearing demand deposits, as well as increases in money market deposit accounts and savings deposits in 2015. This increase was partially offset by a decrease in average long-term borrowings of $93.9 million for the year ended December 31, 2015 as compared to last year due to the debt restructuring strategy completed during the third quarter of 2014. In addition, average short-term borrowings decreased $42.6 million for the year ended December 31, 2015 as compared to last year driven by deposit growth. The rates paid on interest bearing liabilities decreased by 5 basis-points for the year ended December 31, 2015 as compared to 2014. This decrease resulted primarily from a shift in deposits into lower cost core deposits as well as the aforementioned debt restructuring.

Net interest income was $63.5 million for the fourth quarter of 2015, down $0.7 million from the previous quarter, and down $0.5 million from the fourth quarter of 2014. FTE net interest margin was 3.42% for the three months ended December 31, 2015, down from 3.48% for the previous quarter and down from 3.61% for the fourth quarter of 2014. Average interest earning assets were up $49.2 million, or 0.7%, for the fourth quarter of 2015 as compared to the prior quarter, and up $341.5 million, or 4.8%, from the same period in 2014. The increase from the third quarter of 2015 was driven primarily by organic loan production. Yields on earning assets decreased by 7 basis-points from 3.77% during the third quarter of 2015 to 3.70% for the fourth quarter of 2015. This decrease in yield was partially offset by the growth in earning assets during the fourth quarter of 2015, and resulted in the 1.0% decrease in interest income for the fourth quarter of 2015 as compared to the prior quarter. The yield compression was driven primarily by a 9 basis-point decrease in loan yields from the third quarter of 2015 to the fourth quarter of 2015. Average interest bearing liabilities decreased nominally from the third quarter of 2015 to the fourth quarter of 2015. The rate paid on interest bearing liabilities was 0.40% for both the fourth and third quarters of 2015 and contributed to the relatively flat interest expense for the fourth quarter of 2015 as compared to the prior quarter.

Noninterest income for the year ended December 31, 2015 was $118.5 million, down $7.5 million, or 6.0%, from the year ended December 31, 2014. The decrease from 2014 was primarily driven by a gain recognized in 2014 from the previously disclosed sale of our ownership interest in Springstone. This decrease was offset by a gain on the sale of an equity investment totaling $3.0 million in the fourth quarter of 2015. In addition, retirement plan administration fees were up $2.0 million, or 16.6%, from 2014 to 2015 due to new business generation as well as the 2015 acquisition of Third Party Administrators, Inc. (“TPA, Inc.”). ATM and debit card fees were up $1.1 million, or 6.5%, in 2015 as compared to 2014 due to an increase in debit card activity. Other noninterest income was up $3.7 million in 2015 as compared with 2014 due primarily to charge-off recoveries on acquired loans of $1.5 million and a favorable settlement of a prior accrual of $1.6 million in 2015.

Noninterest income for the three months ended December 31, 2015 was $32.5 million, up $1.2 million from the prior period, and up $5.4 million from the same period in 2014. The increase from 2014 was primarily driven by the aforementioned $3.0 million gain from the 2015 sale of an equity investment. In addition, retirement plan administration fees were up $1.2 million during the three months ended December 31, 2015 as compared with the same period in 2014, due primarily to the aforementioned acquisition of TPA, Inc. Other noninterest income was up $2.1 million in fourth quarter of 2015 as compared with the same period in 2014 due primarily to the aforementioned favorable settlement of a prior accrual in 2015.

Noninterest expense for the year ended December 31, 2015 was $236.2 million, down $9.9 million from 2014. This decrease was driven primarily by $17.9 million in prepayment penalties resulting from the debt restructuring in 2014. This decrease was partially offset by an increase in salaries and employee benefits of $4.7 million, or 3.9%, from 2014 to 2015. This increase was driven primarily by higher post retirement expenses as well as contract termination costs accrued in the fourth quarter of 2015. In addition, other operating expenses were up $4.6 million in 2015 as compared with 2014. This increase was driven primarily by branch reorganization expenses totaling $3.8 million in 2015.

Noninterest expense for the three months ended December 31, 2015 was $60.6 million, up $0.7 million from the previous quarter, and up $3.9 million from the same period in 2014. The increase from the prior quarter was due primarily to an increase in salaries and employee benefits driven by higher post retirement costs as well as the aforementioned contract termination costs in the fourth quarter of 2015. This increase was partially offset by a $2.9 million decrease in other operating expenses for the fourth quarter of 2015 as compared with the third quarter of 2015. This decrease was driven by the aforementioned branch reorganization expenses, which were mostly incurred during the third quarter of 2015. The increase in noninterest expense from the fourth quarter of 2014 to the fourth quarter of 2015 was driven primarily by the aforementioned increase in salaries and employee benefits.

Asset Quality

Net charge-offs were $21.6 million for the year ended December 31, 2015, down from $22.6 million for the year ended December 31, 2014. Provision expense was $18.3 million for the year ended December 31, 2015, as compared with $19.5 million for 2014. Net charge-offs to average loans for 2015 was 0.38%, compared with 0.41% for 2014. Included in these net charge-offs were $1.3 million and $3.0 million during the fourth quarter of 2015 and 2014, respectively, related to one acquired commercial loan relationship.

Net charge-offs were $7.6 million for the three months ended December 31, 2015, up from $5.1 million for the prior quarter, and down from $9.9 million for the fourth quarter of 2014. Provision expense was $5.8 million for the three months ended December 31, 2015, as compared with $5.0 million for the prior quarter, and $6.9 million for the fourth quarter of 2014. Annualized net charge-offs to average loans for the fourth quarter of 2015 was 0.51%, compared with 0.35% for the third quarter of 2015 and 0.70% for the fourth quarter of 2014.

Nonperforming loans to total loans was 0.64% at December 31, 2015, down from 0.79% for the prior quarter, and down from 0.82% at December 31, 2014. Past due loans as a percentage of total loans were 0.62% at December 31, 2015, down slightly from 0.63% at September 31, 2015, and down from 0.69% at December 31, 2014.

The allowance for loan losses totaled $63.0 million at December 31, 2015, compared to $64.9 million at September 30, 2015, and $66.4 million at December 31, 2014. The allowance for loan losses as a percentage of loans was 1.07% (1.18% excluding acquired loans with no related allowance recorded) at December 31, 2015, compared to 1.10% (1.21% excluding acquired loans with no related allowance recorded) at September 30, 2015 and 1.19% (1.36% excluding acquired loans with no related allowance recorded) at December 31, 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 $8.3 billion at December 31, 2015, up $455.3 million, or 5.8% from December 31, 2014. Loans were $5.9 billion at December 31, 2015, up $287.9 million from December 31, 2014, due to organic loan growth in 2015. Total deposits were $6.6 billion at December 31, 2015, up $305.2 million, or 4.8%, from December 31, 2014. Stockholders’ equity was $882.0 million, representing a total equity-to-total assets ratio of 10.67% at December 31, 2015, compared with $864.2 million or a total equity-to-total assets ratio of 11.07% at December 31, 2014.

Stock Repurchase Program

The Company purchased 1,047,152 shares of its common stock during the year ended December 31, 2015 at an average price of $25.59 per share under previously announced plans. As of December 31, 2015, there were 952,848 shares available for repurchase under the repurchase plan that was announced on July 27, 2015, which expires on December 31, 2016.

Dividend

The NBT Board of Directors declared a 2016 first-quarter cash dividend of $0.22 per share at a meeting held today. The dividend will be paid on March 15, 2016 to shareholders of record as of March 1, 2016.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.3 billion at December 31, 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 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 acquisition related intangible amortization expense on earnings and equity as well as providing a fully taxable equivalent yield on securities and loans. 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 results of NBT’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 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
4th Q3rd Q2nd Q1st Q4th Q
Profitability:
Diluted Earnings Per Share$0.43 $0.45 $0.43 $0.41 $0.42
Weighted Average Diluted
Common Shares Outstanding 44,072,049 44,262,426 44,530,123 44,641,913 44,535,274
Return on Average Assets (1) 0.93% 0.97% 0.97% 0.94% 0.94%
Return on Average Equity (1) 8.58% 8.97% 8.81% 8.46% 8.46%
Return on Average Tangible Common Equity (1)(3) 13.04% 13.66% 13.47% 13.08% 13.09%
Net Interest Margin (1)(2) 3.42% 3.48% 3.51% 3.60% 3.61%
12 Months ended December 31,
2015 2014
Profitability:
Diluted Earnings Per Share$1.72 $1.69
Weighted Average Diluted
Common Shares Outstanding 44,389,356 44,394,560
Return on Average Assets 0.96% 0.97%
Return on Average Equity 8.70% 8.84%
Return on Average Tangible Common Equity (4) 13.31% 13.90%
Net Interest Margin (2) 3.50% 3.61%
(1) Annualized
(2) Calculated on a Fully Tax Equivalent (“FTE”) basis
(3) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
2015 2014
4th Q3rd Q2nd Q1st Q4th Q
Net Income$ 19,127 $ 19,851 $ 19,281 $ 18,166 $ 18,513
Amortization of intangible assets (net of tax) 750 712 725 784 749
$ 19,877 $ 20,563 $ 20,006 $ 18,950 $ 19,262
Average stockholders' equity$ 884,743 $ 878,305 $ 878,164 $ 871,074 $ 868,634
Less: average goodwill and other intangibles 279,904 281,048 282,272 283,508 284,743
Average tangible common equity$ 604,839 $ 597,257 $ 595,892 $ 587,566 $ 583,891
(4) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
12 Months ended December 31,
2015 2014
Net Income$ 76,425 $ 75,074
Amortization of intangible assets (net of tax) 2,971 3,083
$ 79,396 $ 78,157
Average stockholders' equity$ 878,110 $ 849,465
Less: average goodwill and other intangibles 281,671 287,013
Average tangible common equity$ 596,439 $ 562,452
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
4th Q3rd Q2nd Q1st Q4th Q
Balance Sheet Data:
Securities Available for Sale$1,174,544 $1,058,397 $1,129,249 $1,071,654 $1,013,171
Securities Held to Maturity 471,031 470,758 454,312 456,773 454,361
Net Loans 5,820,115 5,806,129 5,705,929 5,557,664 5,528,912
Total Assets 8,262,646 8,178,976 8,081,892 7,877,527 7,807,340
Total Deposits 6,604,843 6,600,627 6,371,479 6,479,437 6,299,605
Total Borrowings 674,124 594,163 743,893 425,143 548,943
Total Liabilities 7,380,642 7,302,760 7,205,921 7,000,033 6,943,159
Stockholders' Equity 882,004 876,216 875,971 877,494 864,181
Asset Quality:
Nonaccrual Loans$33,744 $42,524 $42,286 $45,053 $41,074
90 Days Past Due and Still Accruing 3,662 3,790 1,994 2,601 4,941
Total Nonperforming Loans 37,406 46,314 44,280 47,654 46,015
Other Real Estate Owned 4,666 4,855 4,649 4,387 3,964
Total Nonperforming Assets 42,072 51,169 48,929 52,041 49,979
Allowance for Loan Losses 63,018 64,859 64,959 65,359 66,359
Asset Quality Ratios (Total):
Allowance for Loan Losses to Total Loans 1.07% 1.10% 1.13% 1.16% 1.19%
Total Nonperforming Loans to Total Loans 0.64% 0.79% 0.77% 0.85% 0.82%
Total Nonperforming Assets to Total Assets 0.51% 0.63% 0.61% 0.66% 0.64%
Allowance for Loan Losses to Total Nonperforming Loans 168.47% 140.04% 146.70% 137.15% 144.21%
Past Due Loans to Total Loans 0.62% 0.63% 0.61% 0.54% 0.69%
Net Charge-Offs to Average Loans (3) 0.51% 0.35% 0.30% 0.34% 0.70%
Asset Quality Ratios (Originated) (1):
Allowance for Loan Losses to Loans 1.18% 1.21% 1.24% 1.29% 1.36%
Nonperforming Loans to Loans 0.61% 0.63% 0.59% 0.69% 0.72%
Allowance for Loan Losses to Nonperforming Loans 193.00% 192.49% 208.99% 188.68% 187.88%
Past Due Loans to Loans 0.64% 0.67% 0.64% 0.56% 0.73%
Capital:
Equity to Assets 10.67% 10.71% 10.84% 11.14% 11.07%
Book Value Per Share$20.31 $20.29 $20.05 $19.95 $19.69
Tangible Book Value Per Share (2)$13.79 $13.80 $13.61 $13.52 $13.22
Tier 1 Leverage Ratio 9.44% 9.34% 9.57% 9.72% 9.39%
Common Equity Tier 1 Capital Ratio 10.20% 10.04% 10.22% 10.46% N/A
Tier 1 Capital Ratio 11.73% 11.57% 11.78% 12.05% 12.32%
Total Risk-Based Capital Ratio 12.74% 12.62% 12.84% 13.15% 13.50%
Common Stock Price (End of Period)$27.88 $26.94 $26.17 $25.06 $26.27
(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)
December 31,December 31,
ASSETS 2015 2014
Cash and due from banks$ 130,593 $ 139,635
Short term interest bearing accounts 9,704 7,001
Securities available for sale, at fair value 1,174,544 1,013,171
Securities held to maturity (fair value of $473,140 and $454,994 at 471,031 454,361
December 31, 2015 and December 31, 2014, respectively)
Trading securities 8,377 7,793
Federal Reserve and Federal Home Loan Bank stock 36,673 32,626
Loans 5,883,133 5,595,271
Less allowance for loan losses 63,018 66,359
Net loans 5,820,115 5,528,912
Premises and equipment, net 88,826 89,258
Goodwill 265,957 263,634
Intangible assets, net 17,265 20,317
Bank owned life insurance 117,044 114,251
Other assets 122,517 136,381
TOTAL ASSETS$ 8,262,646 $ 7,807,340
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)$ 1,998,165 $ 1,838,622
Savings, NOW, and money market 3,697,851 3,417,160
Time 908,827 1,043,823
Total deposits 6,604,843 6,299,605
Short-term borrowings 442,481 316,802
Long-term debt 130,447 130,945
Junior subordinated debt 101,196 101,196
Other liabilities 101,675 94,611
Total liabilities 7,380,642 6,943,159
Total stockholders' equity 882,004 864,181
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 8,262,646 $ 7,807,340

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,
2015 2014 2015 2014
Interest, fee and dividend income:
Loans$ 60,781 $ 61,577 $ 241,828 $ 243,324
Securities available for sale 5,204 5,000 20,418 24,464
Securities held to maturity 2,317 2,357 9,233 5,261
Other 469 480 1,745 2,032
Total interest, fee and dividend income 68,771 69,414 273,224 275,081
Interest expense:
Deposits 3,613 3,856 14,257 13,638
Short-term borrowings 222 143 783 845
Long-term debt 848 846 3,355 6,555
Junior subordinated debt 576 545 2,221 2,165
Total interest expense 5,259 5,390 20,616 23,203
Net interest income 63,512 64,024 252,608 251,878
Provision for loan losses 5,779 6,892 18,285 19,539
Net interest income after provision for loan losses 57,733 57,132 234,323 232,339
Noninterest income:
Insurance and other financial services revenue 6,139 6,007 24,211 24,517
Service charges on deposit accounts 4,350 4,656 17,056 17,941
ATM and debit card fees 4,541 4,266 18,248 17,135
Retirement plan administration fees 4,135 2,962 14,146 12,129
Trust 4,769 4,793 19,026 18,950
Bank owned life insurance income 916 1,894 4,334 5,349
Net securities gains 3,044 33 3,087 92
Gain on the sale of Springstone investment - - 4,179 19,401
Other 4,577 2,435 14,194 10,513
Total noninterest income 32,471 27,046 118,481 126,027
Noninterest expense:
Salaries and employee benefits 33,078 30,058 124,318 119,667
Occupancy 5,291 5,256 22,095 22,128
Data processing and communications 3,990 4,092 16,588 16,137
Professional fees and outside services 3,378 3,564 13,407 14,426
Equipment 3,491 3,211 13,408 12,658
Office supplies and postage 1,545 1,762 6,367 6,983
FDIC expenses 1,312 1,302 5,145 4,944
Advertising 780 963 2,654 2,831
Amortization of intangible assets 1,228 1,226 4,864 5,047
Loan collection and other real estate owned 1,027 702 2,620 3,248
Prepayment penalties on long-term debt - - - 17,902
Other operating 5,499 4,607 24,710 20,092
Total noninterest expense 60,619 56,743 236,176 246,063
Income before income taxes 29,585 27,435 116,628 112,303
Income taxes 10,458 8,922 40,203 37,229
Net income$ 19,127 $ 18,513 $ 76,425 $ 75,074
Earnings Per Share:
Basic$ 0.44 $ 0.42 $ 1.74 $ 1.71
Diluted$ 0.43 $ 0.42 $ 1.72 $ 1.69

NBT Bancorp Inc. and Subsidiaries
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)
2015 2014
4th Q3rd Q2nd Q1st Q4th Q
Interest, fee and dividend income:
Loans$ 60,781 $ 61,656 $ 59,873 $ 59,518 $ 61,577
Securities available for sale 5,204 5,125 5,144 4,945 5,000
Securities held to maturity 2,317 2,318 2,315 2,283 2,357
Other 469 401 395 480 480
Total interest, fee and dividend income 68,771 69,500 67,727 67,226 69,414
Interest expense:
Deposits 3,613 3,554 3,517 3,573 3,856
Short-term borrowings 222 296 144 121 143
Long-term debt 848 845 836 826 846
Junior subordinated debt 576 560 545 540 545
Total interest expense 5,259 5,255 5,042 5,060 5,390
Net interest income 63,512 64,245 62,685 62,166 64,024
Provision for loan losses 5,779 4,966 3,898 3,642 6,892
Net interest income after provision for loan losses 57,733 59,279 58,787 58,524 57,132
Noninterest income:
Insurance and other financial services revenue 6,139 5,862 5,836 6,374 6,007
Service charges on deposit accounts 4,350 4,349 4,285 4,072 4,656
ATM and debit card fees 4,541 4,780 4,679 4,248 4,266
Retirement plan administration fees 4,135 3,249 3,566 3,196 2,962
Trust 4,769 4,611 5,196 4,450 4,793
Bank owned life insurance income 916 931 928 1,559 1,894
Net securities gains 3,044 3 26 14 33
Gain on the sale of Springstone investment - 4,179 - - -
Other 4,577 3,297 3,699 2,621 2,435
Total noninterest income 32,471 31,261 28,215 26,534 27,046
Noninterest expense:
Salaries and employee benefits 33,078 30,227 30,831 30,182 30,058
Occupancy 5,291 5,326 5,412 6,066 5,256
Data processing and communications 3,990 4,207 4,288 4,103 4,092
Professional fees and outside services 3,378 3,137 3,395 3,497 3,564
Equipment 3,491 3,352 3,316 3,249 3,211
Office supplies and postage 1,545 1,576 1,627 1,619 1,762
FDIC expenses 1,312 1,355 1,280 1,198 1,302
Advertising 780 421 734 719 963
Amortization of intangible assets 1,228 1,165 1,187 1,284 1,226
Loan collection and other real estate owned 1,027 699 22 872 702
Other operating 5,499 8,426 5,872 4,913 4,607
Total noninterest expense 60,619 59,891 57,964 57,702 56,743
Income before income taxes 29,585 30,649 29,038 27,356 27,435
Income taxes 10,458 10,798 9,757 9,190 8,922
Net income $ 19,127 $ 19,851 $ 19,281 $ 18,166 $ 18,513
Earnings per share:
Basic$ 0.44 $ 0.45 $ 0.44 $ 0.41 $ 0.42
Diluted$ 0.43 $ 0.45 $ 0.43 $ 0.41 $ 0.42
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
Q4 - 2015Q3 - 2015Q2 - 2015 Q1 - 2015 Q4 - 2014
ASSETS:
Short-term interest bearing accounts$ 13,494 0.34%$ 8,100 0.32%$ 9,854 0.36%$ 9,156 0.30%$ 5,895 0.51%
Securities available for sale (1)(2) 1,070,643 1.97% 1,079,206 1.92% 1,067,619 1.98% 1,018,880 2.02% 1,018,505 2.00%
Securities held to maturity (1) 470,027 2.43% 460,252 2.44% 452,948 2.49% 454,957 2.47% 458,038 2.45%
Investment in FRB and FHLB Banks 32,263 5.63% 37,358 4.19% 31,564 4.90% 30,931 6.20% 31,274 6.01%
Loans (3) 5,872,011 4.12% 5,824,311 4.21% 5,688,159 4.24% 5,586,942 4.33% 5,603,268 4.37%
Total interest earning assets$ 7,458,438 3.70%$ 7,409,227 3.77%$ 7,250,144 3.79%$ 7,100,866 3.89%$ 7,116,980 3.92%
Other assets 693,981 690,768 685,523 696,091 709,955
Total assets$ 8,152,419 $ 8,099,995 $ 7,935,667 $ 7,796,957 $ 7,826,935
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts$1,626,644 0.22%$1,557,651 0.22%$1,598,898 0.20%$1,544,488 0.21%$1,524,881 0.20%
NOW deposit accounts 1,039,563 0.05% 963,744 0.05% 974,504 0.05% 972,263 0.05% 978,527 0.05%
Savings deposits 1,079,757 0.06% 1,085,680 0.06% 1,080,954 0.06% 1,040,031 0.06% 1,017,300 0.08%
Time deposits 918,875 1.05% 939,542 1.01% 968,714 1.00% 1,014,904 1.00% 1,058,615 1.03%
Total interest bearing deposits$ 4,664,839 0.31%$ 4,546,617 0.31%$ 4,623,070 0.31%$ 4,571,686 0.32%$ 4,579,323 0.33%
Short-term borrowings 332,742 0.26% 456,663 0.26% 302,693 0.19% 265,420 0.19% 299,981 0.19%
Junior subordinated debt 101,196 2.26% 101,196 2.20% 101,196 2.16% 101,196 2.16% 101,196 2.13%
Long-term debt 130,522 2.58% 130,680 2.56% 130,743 2.56% 130,879 2.56% 131,000 2.56%
Total interest bearing liabilities$ 5,229,299 0.40%$ 5,235,156 0.40%$ 5,157,702 0.39%$ 5,069,181 0.40%$ 5,111,500 0.42%
Demand deposits 1,944,820 1,894,555 1,815,705 1,770,703 1,759,482
Other liabilities 93,557 91,979 84,096 85,999 87,319
Stockholders' equity 884,743 878,305 878,164 871,074 868,634
Total liabilities and stockholders' equity$ 8,152,419 $ 8,099,995 $ 7,935,667 $ 7,796,957 $ 7,826,935
Interest rate spread 3.30% 3.37% 3.40% 3.49% 3.50%
Net interest margin 3.42% 3.48% 3.51% 3.60% 3.61%
(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
Note: Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35%

NBT Bancorp Inc. and Subsidiaries
AVERAGE YEAR-TO-DATE BALANCE SHEETS
(unaudited, dollars in thousands)
Average Yield/Average Yield/
BalanceInterestRates BalanceInterestRates
Twelve Months ended December 31, 2015 2014
ASSETS:
Short-term interest bearing accounts$10,157 $33 0.33%$ 4,344 $ 28 0.65%
Securities available for sale (1)(2) 1,059,284 20,888 1.97% 1,258,999 25,760 2.05%
Securities held to maturity (1) 459,589 11,296 2.46% 233,465 6,558 2.81%
Investment in FRB and FHLB Banks 33,044 1,712 5.18% 39,290 2,005 5.10%
Loans (3) 5,743,860 242,587 4.22% 5,528,015 244,162 4.42%
Total interest earning assets$ 7,305,934 $ 276,516 3.78% 7,064,113 $ 278,513 3.94%
Other assets 691,583 691,934
Total assets$ 7,997,517 $ 7,756,047
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts$1,582,078 3,351 0.21%$ 1,457,770 $ 2,532 0.17%
NOW deposit accounts 987,638 515 0.05% 949,759 509 0.05%
Savings deposits 1,071,753 651 0.06% 1,020,974 760 0.07%
Time deposits 960,188 9,740 1.01% 1,015,748 9,837 0.97%
Total interest bearing deposits$ 4,601,657 $ 14,257 0.31%$ 4,444,251 $ 13,638 0.31%
Short-term borrowings 339,885 783 0.23% 382,451 845 0.22%
Junior subordinated debt 101,196 2,221 2.19% 101,196 2,165 2.14%
Long-term debt 130,705 3,355 2.57% 224,556 6,555 2.92%
Total interest bearing liabilities$ 5,173,443 $ 20,616 0.40%$ 5,152,454 $ 23,203 0.45%
Demand deposits 1,857,027 1,670,188
Other liabilities 88,937 83,940
Stockholders' equity 878,110 849,465
Total liabilities and stockholders' equity$ 7,997,517 $ 7,756,047
Net interest income (FTE) 255,900 255,310
Interest rate spread 3.38% 3.49%
Net interest margin 3.50% 3.61%
Taxable equivalent adjustment 3,292 3,432
Net interest income $ 252,608 $ 251,878
(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
Note: Interest income for tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory Federal income tax rate of 35%

NBT Bancorp Inc. and Subsidiaries
CONSOLIDATED LOAN BALANCES
(unaudited, dollars in thousands)
2015 2014
4th Q3rd Q2nd Q1st Q4th Q
Residential real estate mortgages$ 1,196,780 $ 1,177,195 $ 1,154,416 $ 1,125,886 $ 1,115,715
Commercial 1,159,089 1,167,007 1,147,586 1,140,114 1,144,761
Commercial real estate 1,430,618 1,435,378 1,423,489 1,349,940 1,334,984
Consumer 1,568,204 1,549,844 1,495,160 1,452,070 1,430,216
Home equity 528,442 541,564 550,237 555,013 569,595
Total loans$ 5,883,133 $ 5,870,988 $ 5,770,888 $ 5,623,023 $ 5,595,271


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

Source:NBT Bancorp Inc.