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NBT Bancorp Inc. Announces Net Income of $19.9 Million for the Second Quarter of 2016; Announces 4.5% Dividend Increase

NORWICH, N.Y., July 25, 2016 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ:NBTB) reported net income for the three months ended June 30, 2016 was $19.9 million, up from $18.9 million for the first quarter of 2016, and up from $19.3 million for the second quarter of 2015. Diluted earnings per share for the three months ended June 30, 2016 was $0.46, as compared with $0.43 for the prior quarter, and $0.43 per share for the second quarter of 2015.

Net income for the six months ended June 30, 2016 was $38.8 million, up from $37.4 million for the same period last year. Reported diluted earnings per share for the six months ended June 30, 2016 was $0.89, as compared with $0.84 for the same period in 2015.

Second Quarter 2016 Highlights:

  • Net income for the second quarter of 2016 is up 5.4% compared to the first quarter of 2016 and up 3.3% compared to the second quarter of 2015
  • Year to date loan growth was 5.3% (annualized)
  • Average demand deposits for the six months ended June 30, 2016 were up 10.5% from the same period in 2015

“We’re pleased to report on our continued strong performance through the second quarter of 2016, particularly in the areas of income generation, loan growth and asset quality,” said NBT Chairman, President and CEO Martin Dietrich. “We remain focused on taking care of our customers, making strategic investments in the future while managing our overall cost structure, and creating opportunities to continue to grow organically across our footprint in markets like New York’s Thruway Corridor and New England. We also continue to find opportunities to engage in relationships with new customers who have been impacted by the disruption caused by mergers and acquisitions among other financial institutions.”

Net interest income was $65.8 million for the second quarter of 2016, up $1.2 million from the previous quarter, and up $3.1 million from the second quarter of 2015. FTE net interest margin was 3.44% for the three months ended June 30, 2016, down from 3.47% for the previous quarter and down from 3.51% for the second quarter of 2015. Average interest earning assets were up $203.0 million, or 2.7%, for the second quarter of 2016 as compared to the prior quarter, and up $538.4 million, or 7.4%, from the same period in 2015. The increase from the first quarter of 2016 was driven primarily by loan production. Annualized loan growth of 4.8% during the second quarter of 2016 was driven by growth in the commercial loan portfolio. Yields on earning assets decreased by 2 basis points (“bps”) from 3.75% during the first quarter of 2016 to 3.73% for the second quarter of 2016. Average interest bearing liabilities increased $209.9 million, or 3.9%, from the first quarter of 2016 to the second quarter of 2016, which was driven by a 2.1% increase in interest bearing deposits for the second quarter of 2016. The rate paid on interest bearing liabilities of 0.41% during the second quarter of 2016 was unchanged from the first quarter of 2016 but slightly higher than the 0.39% paid during the second quarter of 2015 due primarily to an increase in borrowing costs.

Net interest income was $130.4 million for the six months ended June 30, 2016, up $5.5 million from the same period in 2015. FTE net interest margin was 3.46% for the six months ended June 30, 2016, down from 3.55% for the six months ended June 30, 2015. Average interest earning assets were up $511.1 million, or 7.1%, for the six months ended June 30, 2016 as compared to the same period in 2015. This increase from last year was driven primarily by 5.3% annualized loan growth during the first six months of 2016. Yields on earning assets decreased from 3.84% during the first six months of 2015 to 3.74% for the first six months of 2016, but the decrease was more than offset by growth in earning assets resulting in a 4.4% increase in interest income for the six months ended June 30, 2016 as compared to the same period in 2015. The yield compression was driven by a 9 bp decrease in loan yields from the first six months of 2015 to the first six months of 2016. Average interest bearing liabilities increased $325.4 million, or 6.4%, from the six months ended June 30, 2015 to the six months ended June 30, 2016. Total average deposits increased $374.9 million, or 5.9%, for the six months ended June 30, 2016 as compared to the same period last year driven primarily by growth in non-interest bearing demand deposits of 10.5%, combined with a $185.8 million increase in interest bearing deposits due to growth in money market deposit accounts, NOW accounts and savings accounts. In addition, average short-term borrowings increased $142.9 million for the six months ended June 30, 2016 as compared to the same period last year. The rates paid on interest bearing liabilities increased by 1 bp for the six months ended June 30, 2016 to 0.41% as compared to the 0.40% paid in the same period in 2015. This increase resulted primarily from slightly higher rates paid on short-term borrowings and a change in the mix of interest bearing deposits.

Noninterest income for the three months ended June 30, 2016 was $29.6 million, up $1.2 million, or 4.4% from the prior quarter, and up $1.4 million, or 5.0%, from the second quarter of 2015. The increase from the prior quarter was driven primarily by increases in other noninterest income, trust income, ATM and debit card fees, retirement plan administration fees, and service charges on deposit accounts. Other noninterest income was up $1.2 million, or 34.1%, for the second quarter of 2016 as compared to the first quarter of 2016 due primarily to the gain recognized on the sale of equity investments of $0.8 million during the second quarter. The liquidation of these investments made by the Company in order to comply with provisions contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act. Trust revenue was up $0.6 million, or 12.8%, for the second quarter of 2016 as compared with the first quarter of 2016 due primarily to seasonality of trust revenue. ATM and debit card fees were up $0.4 million, or 7.7%, for the second quarter of 2016 as compared to the first quarter of 2016 due primarily to increases in debit card transactions and number of accounts. Retirement plan administration fees were up $0.3 million, or 8.0%, for the second quarter of 2016 as compared to the first quarter of 2016 due primarily to a downturn in market conditions in the first quarter of 2016 and subsequent recovery in the second quarter. These increases were partially offset by a $1.3 million, or 19.0%, decrease in insurance revenue in the second quarter of 2016 as compared with the first quarter of 2016 due primarily to seasonality of insurance revenue.

Noninterest income for the six months ended June 30, 2016 was $58.0 million, up $3.2 million, or 5.9% from the same period last year. The increase from the prior year was driven primarily by increases in other noninterest income, retirement plan administration fees, ATM and debit card fees, and insurance revenue. Other noninterest income was up $1.8 million, or 27.8%, for the first half of 2016 as compared to the first half of 2015 due primarily to the above mentioned gain on the sale of equity investments and fee income from customer interest rate swaps. Retirement plan administration fees were up $1.0 million, or 15.5%, for the first half of 2016 as compared to the same period in 2015 due primarily to the 2015 fourth quarter acquisition of Third Party Administrators, Inc. (“TPA, Inc.”). ATM and debit card fees were up $0.6 million, or 6.6%, for the first half of 2016 as compared to the same period last year due primarily to increases in debit card activity and number of accounts.

Noninterest expense for the three months ended June 30, 2016 was $60.4 million, up $2.2 million or 3.8% from the prior quarter and up $2.5 million from the second quarter of 2015. The increase from the prior quarter was due primarily to increases in other operating expenses which increased $1.5 million or 33.4% from the first quarter of 2016 to the second quarter of 2016 due primarily to higher loan initiation fees due to the timing of loan originations and an increase in fraud losses. In addition, salaries and employee benefits increased $0.5 million, or 1.5%, from the first quarter of 2016 to the second quarter of 2016 as contract terminations costs of $1.2 million were partly offset by $0.5 million in lower medical costs. These increases were partially offset by a decrease in occupancy expenses for the second quarter of 2016 from the first quarter of 2016 due to seasonal expenses. Income tax expense for the three month period ended June 30, 2016 was $10.3 million, up $0.5 million from both the prior quarter and the second quarter of 2015. The increase from the prior period was due primarily to a higher level of taxable income for the second quarter of 2016. The effective tax rate was 34.0% for the first and second quarters of 2016, and 33.6% for the second quarter of 2015.

Noninterest expense for the six months ended June 30, 2016 was $118.7 million, up $3.0 million or 2.6% from the same period in 2015. The increase is due primarily to an increase in salaries and benefit expense of $4.4 million or 7.1% due to increases in salaries, medical insurance costs, retirement plan costs and contract termination costs accrued in the second quarter of 2016. Loan collection and other real estate owned expenses increased $0.7 million in the first six months of 2016 as compared to the same period in 2015 due to a higher level of gains on sales of real estate recorded in first half of 2015. These increases were partially offset by a $0.7 million decrease in occupancy expenses for the first six months of 2016 as compared to the same period in 2015, driven by lower seasonal maintenance and utilities costs due to the mild winter conditions this year. Income tax expense for the six month period ended June 30, 2016 was $20.0 million, up $1.0 million from the six month period ended June 30, 2015. The increase from 2015 was due to a higher level of taxable income in 2016 compared to the first half of 2015. The effective tax rate was 34.0% for the first six months of 2016 as compared to 33.6% for the first six months of 2015.

Asset Quality

Net charge-offs were $4.5 million for the three months ended June 30, 2016, down from $4.8 million for the prior quarter, but up slightly from $4.3 million for the second quarter of 2015. Provision expense was $4.8 million for the three months ended June 30, 2016, as compared with $6.1 million for the prior quarter, and $3.9 million for the second quarter of 2015. Annualized net charge-offs to average loans for the second quarter of 2016 was 0.30%, compared with 0.33% for the first quarter of 2016 and 0.30% for the second quarter of 2015.

Nonperforming loans to total loans was 0.65% at June 30, 2016, down 4 bps from the prior quarter, and down 12 bps from June 30, 2015. Past due loans as a percentage of total loans were 0.60% at June 30, 2016 as compared to 0.61% at June 30, 2015.

The allowance for loan losses totaled $64.6 million at June 30, 2016, compared to $64.3 million at March 31, 2016, and $65.0 million at June 30, 2015. The allowance for loan losses as a percentage of loans was 1.07% (1.16% excluding acquired loans with no related allowance recorded) at June 30, 2016, compared to 1.08% (1.18% excluding acquired loans with no related allowance recorded) at March 31, 2016 and 1.13% (1.24% excluding acquired loans with no related allowance recorded) at June 30, 2015. 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 $8.6 billion at June 30, 2016, up $362.1 million, or 4.4% from December 31, 2015. Loans were $6.0 billion at June 30, 2016, up $156.3 million, or 2.7%, from December 31, 2015. Total deposits were $6.7 billion at June 30, 2016, up $135.6 million, or 2.1%, from December 31, 2015. Stockholders’ equity was $896.4 million, representing a total equity-to-total assets ratio of 10.39% at June 30, 2016, compared with $882.0 million or a total equity-to-total assets ratio of 10.67% at December 31, 2015.

Stock Repurchase Program

The Company purchased 675,535 shares of its common stock during the six months ended June 30, 2016 at an average price of $25.45 per share under a previously announced plan. As of June 30, 2016, there were 277,313 shares available for repurchase under this plan, which expires on December 31, 2016. On March 28, 2016, 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, 2017.

Dividend

The NBT Board of Directors approved a 2016 third-quarter cash dividend of $0.23 per share at a meeting held today. The dividend, which represents a 4.5% increase, will be paid on September 15, 2016 to shareholders of record as of September 1, 2016.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, N.Y., with total assets of $8.6 billion at June 30, 2016. 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)
2016 2015
Profitability:2nd Q1st Q4th Q3rd Q2nd Q
Diluted Earnings Per Share$0.46 $0.43 $0.43 $0.45 $0.43
Weighted Average Diluted
Common Shares Outstanding 43,453,674 43,707,489 44,072,049 44,262,426 44,530,123
Return on Average Assets (1) 0.94% 0.92% 0.93% 0.97% 0.97%
Return on Average Equity (1) 9.00% 8.63% 8.58% 8.97% 8.81%
Return on Average Tangible Common Equity (1)(2) 13.54% 13.17% 13.04% 13.66% 13.47%
Net Interest Margin (1)(3) 3.44% 3.47% 3.42% 3.48% 3.51%
Six Months ended June 30,
Profitability: 2016 2015
Diluted Earnings Per Share$0.89 $0.84
Weighted Average Diluted
Common Shares Outstanding 43,583,837 44,589,358
Return on Average Assets (1) 0.93% 0.96%
Return on Average Equity (1) 8.81% 8.63%
Return on Average Tangible Common Equity (1)(4) 13.35% 13.28%
Net Interest Margin (1)(3) 3.46% 3.55%
(1) Annualized
(2) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
(3) Calculated on a Fully Tax Equivalent ("FTE") basis
2016 2015
2nd Q1st Q4th Q3rd Q2nd Q
Net Income$ 19,909 $ 18,891 $ 19,127 $ 19,851 $ 19,281
Amortization of intangible assets (net of tax) 567 670 750 712 725
$ 20,476 $ 19,561 $ 19,877 $ 20,563 $ 20,006
Average stockholders' equity$ 890,053 $ 880,311 $ 884,743 $ 878,305 $ 878,164
Less: average goodwill and other intangibles 281,709 282,751 279,904 281,048 282,272
Average tangible common equity$ 608,344 $ 597,560 $ 604,839 $ 597,257 $ 595,892
(4) Non-GAAP measure - excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows:
Six Months ended June 30,
2016 2015
Net Income$ 38,800 $ 37,447
Amortization of intangible assets (net of tax) 1,236 1,510
$ 40,036 $ 38,957
Average stockholders' equity$ 885,182 $ 874,639
Less: average goodwill and other intangibles 282,230 282,887
Average tangible common equity$ 602,952 $ 591,752
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)
2016 2015
2nd Q1st Q4th Q3rd Q2nd Q
Balance Sheet Data:
Securities Available for Sale$1,271,596 $1,259,874 $1,174,544 $1,058,397 $1,129,249
Securities Held to Maturity 500,840 466,914 471,031 470,758 454,312
Net Loans 5,974,825 5,903,491 5,820,115 5,806,129 5,705,929
Total Assets 8,624,780 8,472,964 8,262,646 8,178,976 8,081,892
Total Deposits 6,740,416 6,905,042 6,604,843 6,600,627 6,371,479
Total Borrowings 877,926 579,441 674,124 594,163 743,893
Total Liabilities 7,728,427 7,591,237 7,380,642 7,302,760 7,205,921
Stockholders' Equity 896,353 881,727 882,004 876,216 875,971
Asset Quality:
Nonaccrual Loans$37,397 $38,944 $33,744 $42,524 $42,286
90 Days Past Due and Still Accruing 1,613 2,185 3,662 3,790 1,994
Total Nonperforming Loans 39,010 41,129 37,406 46,314 44,280
Other Real Estate Owned 2,211 2,716 4,666 4,855 4,649
Total Nonperforming Assets 41,221 43,845 42,072 51,169 48,929
Allowance for Loan Losses 64,568 64,318 63,018 64,859 64,959
Asset Quality Ratios (Total):
Allowance for Loan Losses to Total Loans 1.07% 1.08% 1.07% 1.10% 1.13%
Total Nonperforming Loans to Total Loans 0.65% 0.69% 0.64% 0.79% 0.77%
Total Nonperforming Assets to Total Assets 0.48% 0.52% 0.51% 0.63% 0.61%
Allowance for Loan Losses to Total Nonperforming Loans 165.52% 156.38% 168.47% 140.04% 146.70%
Past Due Loans to Total Loans 0.60% 0.50% 0.62% 0.63% 0.61%
Net Charge-Offs to Average Loans (1) 0.30% 0.33% 0.51% 0.35% 0.30%
Asset Quality Ratios (Originated) (2):
Allowance for Loan Losses to Loans 1.16% 1.18% 1.18% 1.21% 1.24%
Nonperforming Loans to Loans 0.62% 0.67% 0.61% 0.63% 0.59%
Allowance for Loan Losses to Nonperforming Loans 186.71% 175.40% 193.00% 192.49% 208.99%
Past Due Loans to Loans 0.61% 0.51% 0.64% 0.67% 0.64%
Capital:
Equity to Assets 10.39% 10.41% 10.67% 10.71% 10.84%
Book Value Per Share$20.85 $20.57 $20.31 $20.29 $20.05
Tangible Book Value Per Share (3)$14.31 $13.99 $13.79 $13.80 $13.61
Tier 1 Leverage Ratio 9.03% 9.15% 9.44% 9.34% 9.57%
Common Equity Tier 1 Capital Ratio 9.83% 9.79% 10.20% 10.04% 10.22%
Tier 1 Capital Ratio 11.29% 11.28% 11.73% 11.57% 11.78%
Total Risk-Based Capital Ratio 12.29% 12.29% 12.74% 12.62% 12.84%
Common Stock Price (End of Period)$28.63 $26.95 $27.88 $26.94 $26.17
(1) Annualized
(2) Excludes acquired loans
(3) Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding
NBT Bancorp Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(unaudited, dollars in thousands)
June 30,December 31,
ASSETS 2016 2015
Cash and due from banks$ 151,775 $ 130,593
Short term interest bearing accounts 19,828 9,704
Securities available for sale, at fair value 1,271,596 1,174,544
Securities held to maturity (fair value of $512,349 and $473,140 at 500,840 471,031
June 30, 2016 and December 31, 2015, respectively)
Trading securities 8,591 8,377
Federal Reserve and Federal Home Loan Bank stock 45,260 36,673
Loans 6,039,393 5,883,133
Less allowance for loan losses 64,568 63,018
Net loans 5,974,825 5,820,115
Premises and equipment, net 84,596 88,826
Goodwill 265,957 265,957
Intangible assets, net 15,241 17,265
Bank owned life insurance 163,149 117,044
Other assets 123,122 122,517
TOTAL ASSETS$ 8,624,780 $ 8,262,646
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)$ 2,031,078 $ 1,998,165
Savings, NOW, and money market 3,826,626 3,697,851
Time 882,712 908,827
Total deposits 6,740,416 6,604,843
Short-term borrowings 666,424 442,481
Long-term debt 110,306 130,447
Junior subordinated debt 101,196 101,196
Other liabilities 110,085 101,675
Total liabilities 7,728,427 7,380,642
Total stockholders' equity 896,353 882,004
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 8,624,780 $ 8,262,646
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,
2016 2015 2016 2015
Interest, fee and dividend income:
Loans$ 62,449 $ 59,873 $ 123,679 $ 119,391
Securities available for sale 5,976 5,144 11,963 10,089
Securities held to maturity 2,496 2,315 4,784 4,598
Other 454 395 903 875
Total interest, fee and dividend income 71,375 67,727 141,329 134,953
Interest expense:
Deposits 3,605 3,517 7,202 7,090
Short-term borrowings 579 144 907 265
Long-term debt 773 836 1,606 1,662
Junior subordinated debt 641 545 1,260 1,085
Total interest expense 5,598 5,042 10,975 10,102
Net interest income 65,777 62,685 130,354 124,851
Provision for loan losses 4,780 3,898 10,878 7,540
Net interest income after provision for loan losses 60,997 58,787 119,476 117,311
Noninterest income:
Insurance and other financial services revenue 5,625 5,836 12,571 12,210
Service charges on deposit accounts 4,166 4,285 8,105 8,357
ATM and debit card fees 4,934 4,679 9,517 8,927
Retirement plan administration fees 4,054 3,566 7,808 6,762
Trust 4,937 5,196 9,313 9,646
Bank owned life insurance income 1,271 928 2,562 2,487
Net securities gains 1 26 30 40
Other 4,626 3,699 8,075 6,320
Total noninterest income 29,614 28,215 57,981 54,749
Noninterest expense:
Salaries and employee benefits 32,931 30,831 65,372 61,013
Occupancy 5,254 5,412 10,745 11,478
Data processing and communications 4,121 4,288 8,171 8,391
Professional fees and outside services 3,331 3,395 6,562 6,892
Equipment 3,547 3,316 7,007 6,565
Office supplies and postage 1,676 1,627 3,223 3,246
FDIC expenses 1,293 1,280 2,551 2,478
Advertising 595 734 1,099 1,453
Amortization of intangible assets 928 1,187 2,024 2,471
Loan collection and other real estate owned 845 22 1,550 894
Other operating 5,924 5,872 10,365 10,785
Total noninterest expense 60,445 57,964 118,669 115,666
Income before income taxes 30,166 29,038 58,788 56,394
Income taxes 10,257 9,757 19,988 18,947
Net income$ 19,909 $ 19,281 $ 38,800 $ 37,447
Earnings Per Share:
Basic$ 0.46 $ 0.44 $ 0.90 $ 0.85
Diluted$ 0.46 $ 0.43 $ 0.89 $ 0.84
NBT Bancorp Inc. and Subsidiaries
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, dollars in thousands except per share data)
2016 2015
2nd Q1st Q4th Q3rd Q2nd Q
Interest, fee and dividend income:
Loans$ 62,449 $ 61,230 $ 60,781 $ 61,656 $ 59,873
Securities available for sale 5,976 5,987 5,204 5,125 5,144
Securities held to maturity 2,496 2,288 2,317 2,318 2,315
Other 454 449 469 401 395
Total interest, fee and dividend income 71,375 69,954 68,771 69,500 67,727
Interest expense:
Deposits 3,605 3,597 3,613 3,554 3,517
Short-term borrowings 579 328 222 296 144
Long-term debt 773 833 848 845 836
Junior subordinated debt 641 619 576 560 545
Total interest expense 5,598 5,377 5,259 5,255 5,042
Net interest income 65,777 64,577 63,512 64,245 62,685
Provision for loan losses 4,780 6,098 5,779 4,966 3,898
Net interest income after provision for loan losses 60,997 58,479 57,733 59,279 58,787
Noninterest income:
Insurance and other financial services revenue 5,625 6,946 6,139 5,862 5,836
Service charges on deposit accounts 4,166 3,939 4,350 4,349 4,285
ATM and debit card fees 4,934 4,583 4,541 4,780 4,679
Retirement plan administration fees 4,054 3,754 4,135 3,249 3,566
Trust 4,937 4,376 4,769 4,611 5,196
Bank owned life insurance income 1,271 1,291 916 931 928
Net securities gains 1 29 3,044 3 26
Gain on the sale of Springstone investment - - - 4,179 -
Other 4,626 3,449 4,577 3,297 3,699
Total noninterest income 29,614 28,367 32,471 31,261 28,215
Noninterest expense:
Salaries and employee benefits 32,931 32,441 33,078 30,227 30,831
Occupancy 5,254 5,491 5,291 5,326 5,412
Data processing and communications 4,121 4,050 3,990 4,207 4,288
Professional fees and outside services 3,331 3,231 3,378 3,137 3,395
Equipment 3,547 3,460 3,491 3,352 3,316
Office supplies and postage 1,676 1,547 1,545 1,576 1,627
FDIC expenses 1,293 1,258 1,312 1,355 1,280
Advertising 595 504 780 421 734
Amortization of intangible assets 928 1,096 1,228 1,165 1,187
Loan collection and other real estate owned 845 705 1,027 699 22
Other operating 5,924 4,441 5,499 8,426 5,872
Total noninterest expense 60,445 58,224 60,619 59,891 57,964
Income before income taxes 30,166 28,622 29,585 30,649 29,038
Income taxes 10,257 9,731 10,458 10,798 9,757
Net income $ 19,909 $ 18,891 $ 19,127 $ 19,851 $ 19,281
Earnings per share:
Basic$ 0.46 $ 0.44 $ 0.44 $ 0.45 $ 0.44
Diluted$ 0.46 $ 0.43 $ 0.43 $ 0.45 $ 0.43
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 BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / RatesAverage BalanceYield / Rates
Q2 - 2016Q1 - 2016Q4 - 2015Q3 - 2015Q2 - 2015
ASSETS:
Short-term interest bearing accounts$ 16,063 0.53%$ 13,639 0.63%$ 13,494 0.34%$ 8,100 0.32%$ 9,854 0.36%
Securities available for sale (1)(2) 1,227,367 1.99% 1,188,437 2.06% 1,070,643 1.97% 1,079,206 1.92% 1,067,619 1.98%
Securities held to maturity (1) 498,493 2.49% 465,916 2.48% 470,027 2.43% 460,252 2.44% 452,948 2.49%
Investment in FRB and FHLB Banks 38,939 4.47% 33,470 5.14% 32,263 5.63% 37,358 4.19% 31,564 4.90%
Loans (3) 6,007,677 4.19% 5,884,073 4.20% 5,872,011 4.12% 5,824,311 4.21% 5,688,159 4.24%
Total interest earning assets$ 7,788,539 3.73%$ 7,585,535 3.75%$ 7,458,438 3.70%$ 7,409,227 3.77%$ 7,250,144 3.79%
Other assets 747,074 699,194 693,981 690,768 685,523
Total assets$ 8,535,613 $ 8,284,729 $ 8,152,419 $ 8,099,995 $ 7,935,667
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts$1,709,644 0.22%$1,653,930 0.22%$1,626,644 0.22%$1,557,651 0.22%$1,598,898 0.20%
NOW deposit accounts 1,073,881 0.05% 1,051,959 0.05% 1,039,563 0.05% 963,744 0.05% 974,504 0.05%
Savings deposits 1,143,654 0.06% 1,105,480 0.06% 1,079,757 0.06% 1,085,680 0.06% 1,080,954 0.06%
Time deposits 906,250 1.06% 921,754 1.04% 918,875 1.05% 939,542 1.01% 968,714 1.00%
Total interest bearing deposits$ 4,833,429 0.30%$ 4,733,123 0.31%$ 4,664,839 0.31%$ 4,546,617 0.31%$ 4,623,070 0.31%
Short-term borrowings 484,590 0.48% 369,443 0.36% 332,742 0.26% 456,663 0.26% 302,693 0.19%
Long-term debt 124,851 2.55% 130,420 2.57% 130,522 2.58% 130,680 2.56% 130,743 2.56%
Junior subordinated debt 101,196 2.49% 101,196 2.46% 101,196 2.26% 101,196 2.20% 101,196 2.16%
Total interest bearing liabilities$ 5,544,066 0.41%$ 5,334,182 0.41%$ 5,229,299 0.40%$ 5,235,156 0.40%$ 5,157,702 0.39%
Demand deposits 1,994,601 1,970,315 1,944,820 1,894,555 1,815,705
Other liabilities 106,893 99,921 93,557 91,979 84,096
Stockholders' equity 890,053 880,311 884,743 878,305 878,164
Total liabilities and stockholders' equity$ 8,535,613 $ 8,284,729 $ 8,152,419 $ 8,099,995 $ 7,935,667
Interest rate spread 3.32% 3.34% 3.30% 3.37% 3.40%
Net interest margin 3.44% 3.47% 3.42% 3.48% 3.51%
(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
Six Months ended June 30, 2016 2015
ASSETS:
Short-term interest bearing accounts$ 14,851 $ 43 0.58%$ 9,507 $ 16 0.33%
Securities available for sale (1)(2) 1,207,902 12,174 2.03% 1,043,385 10,349 2.00%
Securities held to maturity (1) 482,204 5,953 2.48% 453,947 5,580 2.48%
Investment in FRB and FHLB Banks 36,205 860 4.78% 31,250 859 5.54%
Loans (3) 5,945,875 124,028 4.19% 5,637,829 119,770 4.28%
Total interest earning assets$ 7,687,037 $ 143,058 3.74% 7,175,918 $ 136,574 3.84%
Other assets 723,134 690,777
Total assets$ 8,410,171 $ 7,866,695
LIABILITIES AND STOCKHOLDERS' EQUITY:
Money market deposit accounts$ 1,681,787 $ 1,832 0.22%$ 1,571,843 $ 1,603 0.21%
NOW deposit accounts 1,062,920 266 0.05% 973,390 249 0.05%
Savings deposits 1,124,567 322 0.06% 1,060,606 324 0.06%
Time deposits 914,002 4,782 1.05% 991,681 4,914 1.00%
Total interest bearing deposits$ 4,783,276 $ 7,202 0.30%$ 4,597,520 $ 7,090 0.31%
Short-term borrowings 427,016 907 0.43% 284,160 265 0.19%
Long-term debt 127,636 1,606 2.53% 130,811 1,662 2.56%
Junior subordinated debt 101,196 1,260 2.50% 101,196 1,085 2.16%
Total interest bearing liabilities$ 5,439,124 $ 10,975 0.41%$ 5,113,687 $ 10,102 0.40%
Demand deposits 1,982,458 1,793,328
Other liabilities 103,408 85,041
Stockholders' equity 885,181 874,639
Total liabilities and stockholders' equity$ 8,410,171 $ 7,866,695
Net interest income (FTE) 132,083 126,472
Interest rate spread 3.33% 3.44%
Net interest margin 3.46% 3.55%
Taxable equivalent adjustment 1,729 1,621
Net interest income $ 130,354 $ 124,851
(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)
2016 2015
2nd Q1st Q4th Q3rd Q2nd Q
Residential real estate mortgages$ 1,219,388 $ 1,211,821 $ 1,196,780 $ 1,177,195 $ 1,154,416
Commercial 1,176,008 1,168,191 1,159,089 1,167,007 1,147,586
Commercial real estate 1,497,683 1,448,920 1,430,618 1,435,378 1,423,489
Consumer 1,629,836 1,620,669 1,568,204 1,549,844 1,495,160
Home equity 516,478 518,208 528,442 541,564 550,237
Total loans$ 6,039,393 $ 5,967,809 $ 5,883,133 $ 5,870,988 $ 5,770,888

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.